Valero Energy Partners LP (VEP) has agreed to acquire the terminal services business for the 135,000-b/d Meraux, La., and 100,000-b/d Three Rivers, Tex., refineries from a subsidiary of Valero Energy Corp. for $325 million. The deal is expected to close Sept. 1.
The Meraux assets comprise 24 tanks with 3.9 million bbl of storage capacity for crude oil, intermediates, and refined petroleum products. The Three Rivers assets comprise 62 tanks with 2.25 million bbl of storage capacity for crude oil, intermediates, and refined petroleum products.
VEP expects to finance the deal with borrowings under its revolving credit facility, cash on hand, and the issuance of additional common units and general partner units to Valero subsidiaries.
Upon closing, VEP plans to enter into 10-year terminaling agreements with a subsidiary of Valero. The agreements are expected to include minimum volume commitments covering 85% of planned throughput.
“With this next step in our growth strategy, we’re expanding our US Gulf Coast footprint and achieving our acquisition target for the year,” said Joe Gorder, Valero Energy Corp. chief executive officer.