Tesoro Corporation has closed the previously announced acquisition of Great Northern Midstream LLC, a crude oil logistics provider that owns and operates a high quality, recently constructed crude oil pipeline, gathering system, transportation, storage and rail loading facilities in the Williston Basin of North Dakota.
Consistent with the details of the transaction announced on 8 December 2015, the acquisition includes:
- The 97 mile BakkenLink crude oil pipeline, which connects to several third party gathering systems.
- A proprietary 28 mile gathering system in the core of the Bakken, supported by acreage dedication.
- A 154 000 bpd rail loading and a 657 000 bbl storage facility in Fryburg, North Dakota, which can provide outbound deliveries to the West, East and Gulf Coasts.
"These strategically located assets are expected to integrate well with our existing assets to create an enhanced system that will serve as a platform for growth for Tesoro and Tesoro Logistics," said Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation. "It also builds upon our existing capabilities to provide full service logistics options for crude oil producers in North Dakota."
The enhanced system will also benefit Tesoro by providing direct access to additional advantaged crude oil for its West Coast refineries and has the potential to reduce supply costs as the Company continues to strengthen its supply position. Additionally, the system will provide ratable pipeline volumes that should ultimately benefit Tesoro Logistics once offered to the master limited partnership, which is expected in 2016.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/12012016/tesoro-corporation-acquires-great-northern-midstream-2116/