Valero Energy Partners (VLP) has acquired a Port Arthur storage terminal from Valero Energy Corporation.
The Port Arthur terminal, which VLP has purchased for $508 million, comprises 47 tanks with 8.5 million barrels of storage capacity for crude oil, intermediates and refined petroleum products, which support Valero's Port Arthur refinery.
The acquisition also include the Parkway Pipeline – a refined products pipeline – which links Valero's St. Charles refinery with the Plantation and Colonia pipeline system in Collins, Mississippi. It has 110,000 barrels per day of capacity, with the ability to expand to more than 200,000 barrels per day.
The transaction is expected to close on November 1.
Joe Gorder, CEO OF VLP's general partners, says: 'We are pleased to continue growing VLP's footprint in the Gulf Coast region.
'This transaction, combined with our organic growth projects, and strong distribution coverage, positions the partnership well to deliver its targeted distribution growth without the need for additional acquisitions.'
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