Tesoro acquires North Dakota logistics group Great Northern Midstream
Tesoro has closed on its acquisition of Great Northern Midstream LLC, a logistics provider which owns and operates high-quality, recently-constructed crude oil pipeline, gathering system, transportation, storage and rail loading facilities in the Williston Basin of North Dakota.
The acquisition includes:
• the 97-mile BakkenLink pipeline, which connects to several third-party gathering systems;
• a proprietary 28-mile gathering system in the core of the Bakken, supported by acreage dedication;
• a 154,000-bpd rail loading and a 657,000 bbl storage facility in Fryburg, North Dakota, which can provide outbound deliveries to the West, East and Gulf Coasts.
"These strategically-located assets are expected to integrate well with our existing assets to create an enhanced system that will serve as a platform for growth for Tesoro and Tesoro Logistics," said Greg Goff, CEO of Tesoro. "It also builds upon our existing capabilities to provide full-service logistics options for crude oil producers in North Dakota."
The enhanced system will also benefit Tesoro by providing direct access to additional advantaged crude oil for its West Coast refineries and has the potential to reduce supply costs as Tesoro continues to strengthen its supply position, according to the company.
Additionally, the system will provide ratable pipeline volumes that should ultimately benefit Tesoro Logistics once offered to the master limited partnership, which is expected in 2016.
The financial details of the transaction are confidential, Tesoro said.
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