By OGJ editors
HOUSTON, Oct. 22 -- Plains All American Pipeline LP has bought receiving pipelines, a manifold system, and 400,000 bbl of crude oil storage capacity at Holly Corp.’s 85,000-b/d refinery in Tulsa for $40 million cash.
Holly, the seller, entered a 15-year tank lease and minimum throughput agreement with Plains covering the six tanks and three crude oil receiving pipelines covered by the transaction. Holly retains ownership of 2.8 million bbl of intermediate and finished product storage at the refinery, which it acquired from Sunoco Inc. last June.
The companies agreed to explore use of the Tulsa storage facilities to capture trading opportunities that may arise from Tulsa’s proximity to Cushing, Okla., an important pipeline hub and pricing location.
Holly recently agreed to buy from Sinclair Oil Corp. a 75,000-b/d refinery 2 miles from its Tulsa facility. It plans to integrate the refineries in a move that will lower crude capacity to 125,000 b/d (OGJ Online, Oct. 20, 2009).