Tweet

Oct 23, 2009 2:24 PM

Plains All American Pipeline LP has acquired certain pipelines, a manifold system, and about 400,000 barrels of crude oil storage capacity from Holly Corporation for $40 million.

Assets purchased include six tanks, three receiving pipelines and related assets, and contract rights located at or associated with Holly’s Tulsa OK refinery. In conjunction with the sale, Holly entered a 15-year tank lease and minimum throughput agreement (with options to extend). Plains and Holly have also agreed to work together to identify and capture contango storage opportunities. Including only the cash flow generated by the lease and throughput agreement, the transaction is expected to be immediately accretive.

Headquartered in Houston TX, Plains All American Pipeline is a publicly traded master limited partnership engaged in transportation, storage, terminaling, and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas-related petroleum products. The partnership is also engaged in development and operation of natural gas storage facilities.