Pacific Energy Partners LP announced that one of its wholly owned subsidiaries has signed a definitive agreement to acquire certain terminal and pipeline assets from subsidiaries of Valero LP. These assets consist of two California terminals handling refined products, blend stocks, and crude oil; three East Coast refined products terminals; and a 550-mile refined products pipeline with four truck terminals and storage in the United States Rocky Mountains.
Total purchase price of the assets is $455 million. Pacific expects to fund the acquisition on a permanent basis by issuing common units for about 60% to 65% of the acquisition price and debt securities for approximately 35% to 40% of the acquisition price. The transaction is subject to the receipt of regulatory approvals and is expected to close within the next 90 days. Valero LP is required to divest these assets pursuant to an order from the Federal Trade Commission in connection with its acquisition of the Kaneb group of companies.
The terminals and pipeline system being acquired by Pacific from Valero LP include:
West Coast terminals in the San Francisco CA area — The Martinez Terminal and the Richmond Terminal, which have 4.1 million barrels of combined storage capacity, are on about 147 acres of company-owned land, providing ample room for additional tankage. These terminals have marine, pipeline, and rail access.
East Coast terminals in the Philadelphia PA area — The North Philadelphia Terminal, the South Philadelphia Terminal, and the Paulsboro NJ Terminal, which have a combined storage capacity of 3.2 million barrels, are on about 102 acres of company-owned land, also providing room for additional tankage. These terminals have marine and pipeline access.
West Pipeline System in the Rocky Mountains — This system consists of 550 miles of refined products pipeline extending from Casper WY east to Rapid City SD and south to Colorado Springs CO. In addition, there are products terminals at Rapid City, Cheyenne WY, and Denver and Colorado Springs with a combined storage capacity of 1.7 million barrels.