Valero Energy Partners has approved the acquisition from Valero Energy Corporation of the McKee Crude System, Three Rivers Crude System, and Wynnewood Products System for $154 million. This is the first purchase for the MLP that was created by Valero Energy.
McKee Crude System overview
· Located in Sunray, Texas
· Throughput capacity of 72 Mbbl/d; supplies approximately 40% of the crude oil processed at Valero's McKee refinery
· Consists of more than 200 miles of pipelines, 20 crude oil truck unloading sites, and approximately 240 Mbbl of storage capacity
Three Rivers Crude System overview
· Located in the Eagle Ford region in South Texas
· Consists of 11 crude oil truck unloading sites
· Includes 12" pipeline with a capacity of 110 Mbbl/d that delivers crude oil to tanks at Valero's Three Rivers refinery
Wynnewood Products System overview
· Located in Ardmore, Oklahoma
· Consists of a 30-mile, 90 Mbbl/d refined petroleum products pipeline
· Connects Valero's Ardmore refinery to the Magellan refined products pipeline system
Upon closing, the Partnership plans to enter into ten-year term transportation and terminaling agreements with subsidiaries of Valero.
In Sep-2013, Valero Energy announced plans to raise the light crude oil processing capacity at its US Gulf Coast refineries by increasing Atmospheric Distillation Unit capacity.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.