Tesoro to acquire Great Northern Midstream
Tesoro Corp., San Antonio, has agreed to acquire Great Northern Midstream LLC, a crude oil logistics provider that owns and operates a recently constructed crude oil pipeline and gathering system, and transportation, storage, and rail-loading facilities in the Williston basin of North Dakota. The purchase price was not disclosed.
OGJ editors
Dec 8th, 2015
Tesoro Corp., San Antonio, has agreed to acquire Great Northern Midstream LLC, a crude oil logistics provider that owns and operates a recently constructed crude oil pipeline and gathering system, and transportation, storage, and rail-loading facilities in the Williston basin of North Dakota. The purchase price was not disclosed.
The deal includes the 97-mile BakkenLink crude oil pipeline, which connects to several third-party gathering systems, as well as a proprietary 28-mile gathering system in the core of the Bakken, supported by acreage dedication. The deal also includes a 154,000-b/d rail-loading and 657,000-bbl storage facility in Fryburg, ND, which can provide outbound deliveries to the West, East, and Gulf Coasts.
The assets are in close proximity to the Tesoro High Plains pipeline system (OGJ Online, Nov. 1, 2013). Once integrated with the High Plains system, it is expected to provide Tesoro’s West Coast facilities with cost-effective access to crude oil and provide producers additional market access.
“We expect the enhanced system to serve as an additional platform for growth and we intend to offer the business for sale to Tesoro Logistics in 2016,” said Greg Goff, Tesoro chairman, president, and chief executive officer.
The deal is expected to close in first-quarter 2016.
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