Tesoro Corp. affiliate Tesoro Logistics LP (TLLP) bought Chevron Pipe Line Co.’s Northwest Products System. The system consists of the 760-mile Northwest Product Pipeline (NPP), a separate 5-mile jet fuel pipeline to the Salt Lake City International Airport, and the Northwest Terminalling Co. (NTC).
NPP extends from Salt Lake City to Spokane, Wash. It receives product from five refineries and one pipeline in the Salt Lake City area and is the primary transportation option from Salt Lake City to Pocatello and Boise, Ida., and Pasco and Spokane, Wash. Delivery volumes on the system averaged about 84,000 b/d in 2011.
NTC is comprised of refined products terminals in Boise, Pocatello, and Pasco. The terminals have a total storage capacity of 1.3 million bbl and delivered 51,000 b/d in 2011.
Tesoro spent $400 million on the acquisition. Subject to regulatory approval, the company expects it purchase to close first-quarter 2013. TLLP launched an amendment and upsizing of its $300 million revolving credit facility to $500 million on Dec. 7 to support this purchase and future growth opportunities.
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