Holly Energy Partners, L.P. (Holly Energy), a provider of petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, has announced its acquisition of the crude oil tankage located at HollyFrontier Corporation’s (HollyFrontier) Tulsa refinery from an affiliate of Plains All American Pipeline, L.P. (Plains) for US$39.5 million in cash. This transaction was effective as of 31 March 2016.
In connection with the closing of the acquisition, HollyFrontier and Holly Energy expect to enter into a 10 year throughput agreement containing minimum quarterly volume commitments from HollyFrontier. Holly Energy expects this acquisition will generate a minimum annual revenue of US$6.1 million in the first year and will be immediately accretive.
Tank World Expo takes place on 12 & 13 April 2016 at the Dubai World Trade Centre, and will feature an array of new technology launches and innovations.
Planned maintenance on HollyFrontier’s El Dorado and Cheyenne distillate hydrotreating units, and the Tulsa West crude and lubricants units, is complete.
Holly Energy Partners has announced two expansion projects to provide 60,000 bpd of additional crude pipeline take-away capacity resulting from increased Delaware Basin drilling activity in southeast New Mexico.