Valero Energy to sell storage tanks to Valero LP

Mar 11, 2003 12:00 PM

Valero Energy Corp, San Antonio TX, has agreed to sell 58 crude oil and intermediate feedstock storage tanks and related assets to Valero LP. The $200 million sale is in addition to the sale of its South Texas pipeline system and related terminals for $150 million. Valero Energy also will sell a sufficient number of common units to Valero LP to reduce its aggregate ownership interest in the partnership from 73.6 percent to 49.5 percent or less. This transaction will de-consolidate Valero LP from Valero Energy's financial statements.

The 58 crude oil and intermediate feedstock storage tanks that are being sold have storage capacity of approximately 11 million barrels. They are located at refineries in Corpus Christi and Texas City TX and Benicia CA, which have a combined throughput capacity of 650,000 barrels per day. Terminals along the pipeline system that is being sold number five for product and one for asphalt.