Holly Energy Partners LP has acquired 50% interest in Cheyenne Pipeline LLC, owner of Cheyenne Pipeline, for $42.5 million. The other 50% interest is owned by an affiliate of Plains All American Pipeline LP, which will continue to operate the line.
The 87-mile, 80,000-b/d crude oil pipeline extends from Fort Laramie to Cheyenne in Wyoming.
Following the acquisition, Cheyenne and a subsidiary of HollyFrontier Corp. executed a long-term extension and increase of HollyFrontier’s minimum volume commitment on the pipeline.
Holly Energy last year bought 50% interest in Frontier Pipeline Co., owner of the 72,000-b/d Frontier Pipeline running from Wyoming to Utah, from an affiliate of Enbridge Inc. (OGJ Online, Sept. 3, 2015).