Valero and SemGroup Europe have signed an agreement for Valero to purchase the SemLogistic's Milford Haven fuel storage facility in the UK.
The facility, located across the Haven from Valero's refinery at Pembroke, Wales, is one of the largest petroleum products storage facilities in the UK. It comprises 8.5 million barrels of capacity for storing petrol, petrol blendstocks, naphtha, jet fuel, gas oil, diesel and crude oil.
The facility will continue to operate as a third-party storage facility, offering storage options for third-party customers across the European petroleum markets. More than 67% of the capacity is multiproduct, giving Valero the flexibility to meet customers' demands in the UK and throughout northwest Europe.
The purchase is expected to be completed in the third quarter of 2018.
Joe Gordor, Valero chairman, president and CEO, says: 'This facility complements our Pembroke refinery and fuel terminals in the UK and Ireland making it a natural fit for the company.
'This purchase demonstrates Valero's commitment to Wales and the UK, and it aligns with our strategy to grow the logistics business and reduce secondary costs.'
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