Valero LP to acquire terminal in New Jersey
Oct 1, 2003 12:00 PM
Valero LP has signed an agreement to purchase Exxon Mobil Corp's refined products terminal in Paulsboro NJ for $14 million. During the second quarter, Valero LP also purchased Shell's 28% interest in a partnership pipeline in the Texas Panhandle. Both of these acquisitions are expected to be immediately accretive to earnings and distributable cash flow.
The refined products terminal being acquired is next to Valero Energy Corp's Paulsboro refinery. Over the past three years, total throughputs at the terminal have averaged about 25,000 barrels per day (BPD).
“This acquisition represents a great entry for Valero into the Northeast refined products market and diversifies our revenue base through increased business with third-party customers, including ExxonMobil,” said Curt Anastasio, Valero president and chief executive officer.
In May, Valero purchased Shell's interest in a pipeline running from Amarillo TX to Lubbock TX for $1.6 million. The pipeline,a joint venture of Valero, ConocoPhillips, and Shell, has an 18,000-BPD throughput capacity.
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