Tesoro increases its presence in the Bakken with the purchase of strategic midstream assets.
Tesoro Corporation announced earlier this month that it will grow its midstream operations to provide more efficient, flexible and cost-effective integrated logistics services to customers in the Bakken region. They will acquire Great Northern Midstream LLC and will gain pipelines, gathering systems, transportation, storage and rail loading facilities in the Williston Basin of North Dakota.
Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation commented that, "Combining the Great Northern Midstream assets with our Tesoro High Plains Pipeline will create a leading crude oil pipeline system in the most prolific region of the Bakken."
The transaction includes the 97-mile BakkenLink crude oil pipeline, a proprietary 28-mile gathering system and a 154,000 barrel per day rail loading and a 657,000 barrel storage facility in Fryburg, North Dakota.
In late 2014, Tesoro purchases QEP Resources Inc.’s natural gas pipeline and processing business, QEP Field Services, which brought with it 2,000 miles of natural gas and crude oil gathering and transmission pipeline, with locations in North Dakota’s Bakken Shale and the Rocky Mountain region. The assets have have a combined 2.9 billion cf/d of natural gas and 54,000 b/d of crude oil throughput capacity.
The terms of the Great Northern deal are not public, but Tesoro said the acquisition price represents five to six times Tesoro-estimated future EBITDA for the Great Northern Midstream business. The transaction is expected to close early in 2016.
Read more at tesorologistics.com