Plains Announces Plans To Install Battery Energy Storage System At Sarnia Facility
Houston, Texas – June 29, 2022 – Plains Midstream Canada, a subsidiary of Plains All American (Nasdaq: PAA & PAGP) (Plains) today announced plans to install a 5 MW/10 MWh battery energy storage system (BESS) at the natural gas liquids fractionation and storage facility joint venture that Plains operates in Sarnia, Ont. The BESS is designed to reduce the facility’s power draw from Ontario’s electric grid during periods of peak power demand.
“Reducing our power demand during peak hours will lower variable costs at our Sarnia facility and improve grid sustainability in Ontario while decreasing carbon emissions,” stated Dan Noack, Vice President Emerging Energy and Process Optimization. “Industrial-scale battery energy storage systems are a key element of supporting continued growth in renewables. The BESS is a capital-efficient project representing another step in aligning our operations with advancing technology and emerging energy opportunities.”
The battery system will be charged from the grid during off-peak hours when low-cost, low-carbon electricity is more readily available and will be discharged during higher cost peak demand hours that currently require power generation from non-renewable sources. Plains intends to enroll the BESS in Ontario’s Independent Electricity System Operator’s (IESO) demand response program, which will allow the facility to collect additional revenue when the battery is utilized during curtailment events.
The BESS is expected to be placed in-service in mid-2023. The Sarnia facility is a joint venture with Pembina Pipeline Corporation.
Forward Looking Statements This press release contains forward-looking statements regarding the timing and expected benefits of the BESS project. These statements involve certain 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 are discussed in PAA's and PAGP's filings with the Securities and Exchange Commission.
About Plains PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (NGL). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles more than six million barrels per day of crude oil and NGL. PAGP is a publicly traded entity that owns an indirect, non-economic controlling general partner interest in PAA and an indirect limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America.
PAA and PAGP are headquartered in Houston, Texas. For more information, please visit plains.com. Contacts: