Valero Terminaling and Distribution Company, an indirect wholly owned subsidiary of Valero Energy Corporation (Valero), has announced that it has purchased the remaining 50% membership interest in Parkway Pipeline LLC (Parkway Pipeline) from a wholly owned subsidiary of Kinder Morgan Inc. effective 30 June 2016, bringing its total interest in the pipeline to 100%.
Parkway Pipeline is a 141 mile, 16 in. products pipeline with 110 000 bpd of capacity, with the ability to expand to more than 200 000 bpd. The pipeline currently transports refined petroleum products from Valero’s 305 000 bpd St. Charles refinery, located in Norco, Louisiana, to Collins, Mississippi for supply into the Plantation pipeline system. Kinder Morgan owns 51% of Plantation Pipe Line Co. and operates the Plantation pipeline system.
Valero funded the acquisition with cash.
In addition, Parkway Pipeline separately executed a connection agreement with Colonial Pipeline Co. pursuant to which Parkway Pipeline will construct, own, and operate a new lateral segment to connect the pipeline to the Colonial pipeline system near Collins, Mississippi (Colonial Connection).
“The acquisition of Parkway Pipeline and execution of the Colonial Connection further enhance Valero’s ability to grow and optimise its product supply to the eastern United States,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “This demonstrates our disciplined approach to capital allocation where acquisitions are strategic to Valero’s core business and investments are consistent with our strategy to grow our logistics assets.”
Valero Energy Partners LP has a right of first offer to acquire Valero’s initial 50% interest in Parkway Pipeline.
Edited from source by Stephanie Roker
Read the article online at: https://www.hydrocarbonengineering.com/refining/13072016/valero-acquires-100-ownership-of-parkway-pipeline/