Tesoro Corporation acquires midstream assets

A range of midstream assets including a crude oil pipeline and storage facilities have been acquired by Tesoro Corporation.
The company has acquired Great Northern Midstream, a crude oil logistics provider which owns and operates a recently constructed 97-mile BakkenLink crude oil pipeline, gathering system, transportation, storage and rail loading facilities in the Williston Basin of North Dakota.
The BakkenLink connects several third-party gathering systems as well as a proprietary 28-mile gathering system in the core of the Bakken, supported by acreage dedication.
The transaction also includes a 154,000 barrel per day rail loading and a 657,000 barrel storage facility in Fryburg, North Dakota, which can provide outbound deliveries to the west, east and Gulf Coasts.
Once integrated with the Tesoro High Plans Pipeline system, it is expected to provide Tesoro’s West Coast facilities with access to advantaged crude oil and provide producers additional market access.
Greg Goff, chairman, president and CEO of Tesoro says: ‘Our acquisition of Great Northern Midstream is aligned with our strategy to grow our logistics business, supply advantaged crude oil to our refineries, and make these assets available to third-party customers.
‘Combining the Great Northern Midstream assets with our Tesoro High Plains Pipeline will create a leading crude oil pipeline system in the most prolific region of the Bakken.’
The transaction is expected to close in the first quarter of 2016.