Tesoro sells marine terminal, pipelines to partnership
Tesoro Corp on Friday said it sold the Long Beach marine terminal and its Los-Angeles area pipelines to Tesoro Logistics LP for $210 million, Reuters reports.
The assets include a two-vessel berth dock that Tesoro leased from the City of Long Beach, six storage tanks with a combined capacity of 235,000 barrels and six related pipelines, with 70,000 barrels-per-day throughput, which connect the terminal with Tesoro's Wilmington, California, refinery and other facilities.
The company had announced plans to sell the assets to the partnership in its second-quarter earnings report. Tesoro Logistics is a limited partnership formed by Tesoro Corp in 2011 to own, operate, develop, and acquire crude oil and refined products logistics assets.
The asset sale follows Tesoro Corp's $2.5 billion bid to buy BP Plc.'s 266,000 barrels-per-day refinery in Carson, California, announced in August. The company plans to combine the Carson plant with its 97,000 barrels-per-day Wilmington refinery to create a West Coast refining empire.
Tesoro had said in August that it plans to finance the deal with BP through asset sales to Tesoro Logistics, which it expected to generate $1 billion in cash in the first year.
However, the latest asset transfer to the Logistics partnership is not related to the bid on the Carson plant, according to Louie Rubiola, director of Investor relations.