Par Pacific Holdings will acquire US Oil & Refining including refining and logistics assets for $358 million.
The acquisition includes a 42,000 barrel per day refinery, a marine terminal, a unit train-capable rail loading terminal and 2.9 million barrels of refined product and crude oil storage. The refinery and associated logistics system are strategically located in Tacoma, Washington and currently serve the Pacific Northwest market.
US Oil's refinery is located on 139 acres of fee-owned land near Tacoma. The refinery has the flexibility to optimise its crude slate based on market conditions. Currently discounted Bakken and Cold Lake crude represent over 95% of its current crude slate.
US Oil's logistics assets include a 14-mile jet fuel pipeline, a marine terminal with 15 acres of waterfront property, a unit train facility with 107 unloading spots and a truck rack with six truck lanes and 10 loading arms as well as 2.9 million barrels of storage capacity.
These assets provide connectivity to Bakken, Canadian and Alaskan crude and Pacific, West Coast, Pacific Northwest and Rockies product markets.
William Pate, president and CEO of Par Pacific Holdings, says: 'This transformative acquisition connects our existing assets in Hawaii, Pacific Northwest and the Rockies to create an integrated downstream network with significantly enhanced scale and diversification.
'We have been executing an ambitious strategic growth plan focused on attractive downstream markets for over three years and the acquisition of US Oil further demonstrates the progress we have made. We believe that this transaction provides a strong platform for earning and cash flow growth.'
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