Island Energy Services is shifting its strategic focus to logistics and retail operations in Hawaii and is selling some refinery assets to Par Pacific Holdings.
Par intends to utilise the acquired assets for continued refining operations to supply fuel to IES, which will allow IES to fulfil certain utility fuel supply contracts in Hawaii.
IES, a Hawaii based fuels market and logistics business, has agreed to enter into a long-term agreement with Par to provide fuel storage and throughput services.
IES plans to continue to source petroleum products from its current network of local and global suppliers and does not expect any disruption to Hawaii's supply of petroleum products as a result of this transaction.
It also expects to reinvest net sale proceeds in Hawaii to further expand its logistics infrastructure, which includes a network of tank terminals, pipelines and other distribution assets.
The company says these planned investments are intended to ensure IES remains well-positioned as a long-term valued suppler of fuel products in Hawaii. It also plans to expand its retain operations.
IES CEO Jon Mauer says: 'This shift in operations better positions IES as an integrated logistics provider, anchored by our large-sale Kapolei import terminal. We look forward to maintaining our role as a trusted local fuel supplier for the state as we respond to changing market conditions, industry regulations and Hawaii's long-term energy mandate.'
Growing Contanda's storage footprint in HoustonPetrochemical production fuels a bright storage future Oil market eyes November Iran sanctions hiatus A new name in Cushing Unleashing the potential of American energy Storage for the US's largest refining market Expanding the US global market share Trade war questions temper US midstream sector growth plans Safe & productive solutions for tank cleaning Ground improvement plays supporting role for storage tanks