Pier 400 Project Update

The Pacific L.A. Marine Terminal LLC Pier 400 project was initiated in 2003 to provide a deep-water port to Southern California. The plan called for construction of a new berth at the Port of Los Angeles’ Pier 400, Berth 408; crude oil storage tanks on Pier 400 and Terminal Island; and associated pipelines to bring crude oil from the waterfront to the storage tanks. Crude oil would be offloaded from tankers into the storage tanks and pumped to local refineries.

 

On November 5, 2012, Plains All American Pipeline announced it recently made a determination not to proceed with the development of the Pier 400 project. Since inheriting the Pier 400 project in connection with the acquisition of Pacific Energy Partners in late 2006, the company has invested significant time and capital working through the regulatory process and negotiating with a variety of potential customers while also re-engineering the project to meet environmental requirements and adapt to the changing needs of potential customers.  A number of factors contributed to the uncertainty with respect to financial returns and the determination not to proceed with the project, including project delays, the economic downturn, regulatory and permitting hurdles, a challenging refining environment in California and an industry shift in the outlook for availability of domestic crude oil.  PAA is and will remain a significant owner and operator of crude oil, refined products and NGL infrastructure in California and expects to continue to develop and execute growth projects in California. 

 

PAA would like to acknowledge the efforts of many individuals involved in the PIER 400 project, including elected officials, regulators, contractors, community and business leaders, and employees in the Los Angeles area.