Tesoro Logistics LP has agreed to acquire crude oil and refined product storage and pipeline assets in Los Angeles from subsidiaries of Tesoro Corp. for $500 million.
The assets include 97 crude, feedstock, and refined product storage tanks with combined capacity of 6.6 million bbl and 50% interest in Line 88, a 16-mile pipeline that transports jet fuel from Tesoro's 363,000-b/d Los Angeles refinery near the Port of Long Beach to Los Angeles International Airport with average throughput of 25,000 b/d.
The acquisition price will include $250 million in cash and the issuance of common and general partner units to Tesoro valued at $250 million. The transaction is expected to close later this week.