Western Refining said it will acquire a natural gas liquids fractionation plant from ConocoPhillips. The Wingate Fractionation Plant located in Gallup, New Mexico, is able to store liquids as well as serve as a transportation point to load and offload energy supplies.
The acquisition is expected to be completed in early October.
"The strategic location of the Wingate facility is a great addition to the logistical assets of Western," Western Refining CEO Jeff Stevens said in a statement. "It is conveniently located near our Gallup Refinery."
Stevens also said the company will be able to store 125,000 barrels of natural gas liquids for its Gallup Refinery and provide more options for Western Refining to connect pipelines to assets owned by Western Refining Logistics.
Previously, the company reported a strong second quarter with a net income of $128.8 million. The company said its refineries in the Southwest reached an all-time high total for the quarter with 165,000 barrels per day.
Western Refining aims to increase expansion of its crude oil gathering abilities at the Permian and San Juan Basins.