Plains to buy, scrap idle Virginia refinery

Western Refining Inc. has agreed to sell its idle 70,000-b/d Yorktown refinery and working terminal in York County, Va., and part of a crude oil pipeline in southeastern New Mexico to units of Plains All American Pipeline LP for $220 million.

The refinery has been idle since September 2010, operating as a products terminal and storage facility (OGJ Online, Sept. 13, 2010). The buyers are Plains Marketing LP and Plains Pipeline LP.

Plains All American said it will disassemble and sell surplus equipment at the site and “enhance connectivity and performance of the Yorktown terminal,” which has storage capacity of 6.6 million bbl of crude oil, products, and LPG.

The company will acquire an 82-mile, 16-in. crude oil pipeline segment and related connections and tanks in New Mexico, adding as much as 100,000 b/d of delivery capacity to the Jal station on its Basin Pipeline system.

To access this Article, go to: