Western Refining Investing in the Bakken Through Minnesota Refinery

Northern Tier Energy Asset Map
Northern Tier Energy Asset Map

Western Refining has agreed to acquire Northern Tier Energy's general partner from Acon Investments and TPG for total consideration of $775 million.

The acquisition gives Western ownership in an 89,500 b/d refinery in St. Paul Park, MN, an interest in a 455,000 b/d pipeline moving crude from Clearbrook to St. Paul Park, as well as other assets.

More than half of the feedstock used in the St. Paul Park refinery is considered light sweet and "most" of the light-sweet crude comes from the Bakken.

This investment further enhances our strategic goal of expanding our refining presence in areas with direct pipeline access to cost-advantaged crude oil resources...... Northern Tier Energy’s St. Paul Park refinery is a very successful refinery with pipeline access to cost-advantaged crude oil and refined product regions that historically have generated strong product margins.
— Jeff Stevens, Western's CEO

The CEO is referencing Bakken oil when he mentioned "cost-advantaged" crude oil. The refinery is strategically placed to benefit from future Bakken production growth.

Northern Tier's Assets Include:

  • St. Paul Park Refinery - 89,500 barrels per day refining capacity and processes 100% cost-advantaged crude oil - 75% light, 25% heavy
  • Pipeline access to Bakken and Canadian crude oil - 17% interest in a 455,000 barrel per day crude oil pipeline
  • Products terminals, storage tanks, rail facilities and Mississippi river dockage
  • Retail assets which include the SuperAmerica retail channel
  • 163 company operated convenience stores
  • 74 franchised convenience stores

Read the full story at jamestownsun.com