Plains All American Pipeline Announces Cactus II Pipeline is Fully Committed with Long-Term Third-Party Contracts

HOUSTON–(BUSINESS WIRE)–A subsidiary of Plains All American Pipeline, L.P. (NYSE: PAA)
today announced the successful conclusion of the recent open season for
its Cactus II pipeline, a new pipeline system with an initial capacity
of 585,000 barrels per day extending from the Permian Basin to the
Corpus Christi/Ingleside area.

Cactus II pipeline capacity is fully committed with long-term
third-party shipper contracts totaling 525,000 barrels per day, composed
of 425,000 barrels per day of long-term minimum volume commitments and
an additional 100,000 barrels per day of commitments associated with
long-term acreage dedications. Approximately 60,000 barrels per day is
reserved for walk-up shippers. Affiliates of certain third-party
contracted shippers have options (exercisable no later than mid-2018) to
participate as joint venture partners for up to 35% of Cactus II. PAA is
expected to retain 65% ownership and will serve as operator.

The Cactus II pipeline system will have origination points at Orla,
Wink, Midland, Crane and McCamey, Texas and will be capable of
transporting multiple quality segregations. The system includes a
combination of capacity on existing pipelines and two new 26-inch
pipelines and is expandable to approximately 670,000 barrels per day
through the addition of incremental pumping capacity. The first new
pipeline will extend from Wink to McCamey, TX, and the second new
pipeline (which is expected to be owned within the Joint Venture) will
extend from McCamey to the Corpus Christi/Ingleside area, and have
flexibility to access multiple docks.

The capital cost of the two new pipelines is expected to total
approximately $1.1 billion, with PAA’s portion representing
approximately $700 to $750 million, which amount was included in PAA’s
capital plan disclosed earlier this month and assumes exercise of the
third party options to participate in the joint venture. Permitting,
right-of-way and procurement activities are underway, and the pipeline
system is targeted to be operational in the third quarter of 2019.

Forward Looking Statements

Certain matters discussed in this release are forward-looking statements
that involve risks and uncertainties that could cause actual results or
outcomes to differ materially from results or outcomes anticipated in
the forward-looking statements. These risks and uncertainties include,
among other things, shortages, cost increases or delays in receipt of
supplies, materials or labor; inability to obtain, delays in the receipt
of, or other issues associated with necessary licenses, permits,
approvals, consents, rights of way or other governmental or third party
requirements; the impact of current and future laws, rulings, orders,
governmental regulations, accounting standards and statements and
related interpretations; weather interference with business operations
or project construction, including the impact of extreme weather events
or conditions; environmental liabilities, issues or events that result
in construction delays or otherwise impact targeted in-service dates;
interruptions in service on third-party pipelines or facilities; general
economic, market or business conditions and the amplification of other
risks caused by volatile financial markets, capital constraints and
pervasive liquidity concerns; and other factors and uncertainties
inherent in the transportation, storage, terminalling and marketing of
crude oil as discussed in PAA's filings with the Securities and Exchange
Commission.

Plains All American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure and
provides logistics services for crude oil, natural gas liquids ("NGL"),
and natural gas. PAA owns an extensive network of pipeline
transportation, terminalling, storage and gathering assets in key crude
oil and NGL producing basins and transportation corridors and at major
market hubs in the United States and Canada. On average, PAA handles
more than 5 million barrels per day of crude oil and NGL in its
Transportation segment. PAA is headquartered in Houston, Texas. More
information is available at www.plainsallamerican.com.

Contacts

Plains All American
Investors:
Brett Magill,
(866) 809-1291
Manager, Investor Relations
or
Media:
Brad
Leone, (866) 809-1290
Director, Communications