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SAN ANTONIO -- Valero L.P. has approved the purchase from Valero Energy Corp. of a 270-mile crude oil pipeline and related storage facility.
Valero L.P. will pay $64 million for the pipeline and the storage tanks. The sale is expected to close next month.
The 110,000 barrel-per-day pipeline delivers crude oil from Wichita Falls, Texas, to Valero Energy Corp.'s McKee refinery in the Texas panhandle. The crude oil storage facility, which is located in Wichita Falls, consists of four crude oil storage tanks with combined capacity of 660,000 barrels.
"Strategically, this acquisition allows the partnership to significantly increase its throughput volumes and revenues and provides a stable cash flow for the unit holders," said Curt Anastasio, CEO of Valero L.P. "With this acquisition, the partnership has completed the exercise of the three asset purchase options announced at the time of our initial public offering and we look forward to pursuing additional acquisition opportunities in the future."
Valero L.P. owns 510 miles of crude oil pipelines, nearly 3,000 miles of refined product pipelines and 11 refined product terminals.