The company acknowledged earlier this year that it was looking to divest the two terminals, located in Richmond and Martinez, Calif. The Martinez terminal has a total capacity of just over 4.8 million barrels and handles refined products and crude via marine and pipeline connections. Some 31 tanks with capacity between 10,000 to 500,000 barrels are on site and the complex can accommodate 150,000 deadweight ton vessels with a draft as deep as 37 feet.

The Richmond facility has just over 600,000 bbl of storage for gasoline, distillate, heavy fuel and ethanol, with 25 tanks ranging in size from 8,000 bbl to 56,000 bbl. It receives its product from the Kinder Morgan systems and receives some ethanol by rail. Richmond can handle vessels of up to 65,000 DWT with 37-foot draft.

An announcement on the potential sale could come as early as Plains’ third quarter earnings’ call, which will follow the release of earnings next week. Chief Operating Officer Willie Chiang noted three months ago that the company was “very pleased with the values” that they received on the Bay Area terminals.

Sources tell OPIS that Chiang may be significantly understating the interest, as some competitors noted being “blown out of the water” with high bids for the terminals. There is even speculation that Valero’s logistical affiliate might be among the high bidders, and targeting storage in the area would curtail discussion that the parent company has soured on its Benicia refinery.

Other observers feel that the properties may go to MLP “wannabees,” with plenty of private equity money looking for roll-ups that will eventually be sold to the public.

“Finding a reasonable place to invest the mountains of private equity cash is regarded as a victory in and of itself for some bankers,” one source told OPIS.