November 11, 2015 [OPIS] - Subsidiaries of Tesoro Corp. have come to terms for the sale of storage and transportation assets in Los Angeles, Calif., to Tesoro Logistics LP, the oil refiner said Tuesday.
In a deal worth $500 million, Tesoro Logistics will acquire 97 crude oil, feedstock and refined product storage tanks and a 50% interest in Line 88, a 16-mile jet fuel pipeline.
Combined capacity of the storage tanks comes to 6.6 million bbl. Line 88, with an average throughput of 25,000 b/d, transports jet fuel from Tesoro’s Los Angeles Refinery to Los Angeles International Airport.
The $500 million price will consist of about $250 million in cash and the issuance of common and general partner units to Tesoro, valued at about $250 million. The transaction is expected to close this week, the company said.
The Los Angeles Refinery complex is made up of the 276,000-b/d Carson refinery and Tesoro’s 107,000-b/d refinery in neighboring Wilmington.
The company is in the process of combining the Wilmington and Carson plants into the West Coast’s single-largest refinery, with the aim of increasing crude storage capacity and upgrading equipment to comply with increasingly stringent gasoline specifications and emissions standards.
Tesoro Logistics operates primarily in the Western and Midcontinent regions of the U.S. It owns and operates a network of over 3,500 miles of crude oil, refined products and natural gas pipelines.
Tesoro Logistics also owns and operates 28 crude oil and refined products truck and marine terminals and has over 9 million bbl of storage capacity.
In addition, it owns and operates four natural gas processing complexes and one fractionation facility.
In July, Tesoro Logistics completed a merger with QEP Midstream Partners, an MLP that provides midstream gathering and processing services to companies in the Green River, Uinta and Williston basins in the Rockies.
