Tesoro Logistics (TLLP) has acquired terminalling and storage assets in California as part of a $1.1 billion package of investments in midstream assets.
The company acquired the storage facilities in northern California from Tesoro Corporation for $400 million in addition to buying crude oil, natural gas gathering and processing assets for $700 million.
The storage assets in Martinez include 5.8 million barrels of crude oil, feedstock and refined product storage capacity at Tesoro’s Martinez Refinery along with a marine terminal capable of handling up to 35,000 barrels per day of feedstock and refined product throughput.
TLLP plans to improve asset utilisation by 10% to 15% as well as pursuing related organic growth opportunities. As part of the acquisition, Tesoro and TLLP entered into long-term, fee-based storage and throughput and use agreements which are expected to provide stable cash flows.
Greg Goff, chairman and CEO of TLLP’s general partner says: ‘These two acquisitions strengthen TLLP’s portfolio of logistics assets that provide full-service capabilities to both upstream and downstream customers.