Tesoro Logistics to buy Tesoro’s Alaska storage, terminalling assets
Tesoro Logistics LP (TLLP) has agreed to acquire storage and terminalling assets in Alaska from units of Tesoro Corp. for $444 million.
The first part of the deal, which closed July 1, includes crude oil, feedstock, and refined product storage tanks with combined capacity of 3.5 million bbl in Kenai, Alas., with connectivity to TLLP’s Tesoro Alaska pipeline, Nikiski products terminal, and Tesoro’s Kenai refinery
The second part of the deal covers refined product terminals in Anchorage and Fairbanks with combined storage capacity of 600,000 bbl, expected throughput of 10,400 b/d, and rail loading of 7,000 b/d. It’s expected to close later in the third quarter once a consent decree with the state of Alaska becomes effective.
Tesoro on June 20 closed its acquisition with Flint Hills Resources that included an Anchorage terminal with 580,000 bbl of storage capacity, a truck rack, and rail-loading capability (OGJ Online, June 21, 2016).
“The acquired assets serve as a critical component in the Alaska supply chain and enable TLLP to provide an integrated, full-service logistics solution in the region while contributing stable fee-based cash flows,” said Greg Goff, TLLP’s chairman and chief executive officer, following the latest deal.