April 2, 2015 [OPIS] - BP has told its marketers that it will be divesting about 15 refined products terminals, mostly in the Midwest and along the East Coast. The company will also explore possible joint venture operations for its Portland, Ore., and Seattle, Wash., facilities.
The move comes after an internal review. BP told customers it made the decision to modify its U.S. Pipelines and Logistics (USPL) operating model and will pursue a centralized structure.
It’s not clear exactly what is meant by that statement, but it has not been unusual for multinational oil companies to sell terminals. Firms structured as master limited partnerships have been active buyers of the facilities and deals usually include long-term throughput agreements.
The terminals on the block include Brooklyn, N.Y.; Carteret, N.J.; Chattahoochee, Ga.; Cincinnati and Dayton, Ohio; Curtis Bay, Md.; two facilities in Doraville, Ga.; Forest View, Rochelle, and Wood River, Ill., and a terminal at O’Hare Airport; Pt. Everglades, Fla.; Spring Valley, Minn.; and other unnamed operating assets.
The letter to customers stresses that BP successfully serves two-thirds of its supply through third-party terminals and “finds it a competitive way to supply product effectively” to those customers.
The major observes that there is no timetable for the sale. Until the process results in a sale, BP will continue to operate all the assets as usual.
