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.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/04042016/holly-energy-acquires-hollyfrontier-crude-oil-tankage-assets-2922/