Torrance Valley owns the 189-mile San Joaquin Valley Pipeline system in California with a throughput capacity of about 110,000 barrels per day.

The system features the M55, M1 and M70 pipelines which are the primary crude gathering and transportation lines that deliver PBF Energy's Torrance refinery.

The assets also include 11 pipeline stations with around one million barrels of combined storage capacity and truck unloading capability at two of the stations.

Pursuant to the LOI, after closing, PBF Logistics would enter into ten-year term transportation services agreements with subsidiaries of PBF Energy.

The deals will feature minimum volume throughput commitments (MVCs) of nearly 50,000 barrels per day for the M1 and M55 pipelines.

The acquired interests of TVPC would be expected to generate annual net income of about $9.4m based on revenues of approximately $38.5m depending on expected ownership percentage, existing cost structure, increased fees payable by PBF under the services agreement and the expected minimum throughput rates.

Operating income is expected to be $11m with estimated earnings before interest, taxes, depreciation and amortization of around $20m.

PBF Logistics and PBF Energy CEO Thomas Nimbley said: "The potential acquisition of a 50 percent interest in the Torrance Valley Pipeline Company reflects PBFX's ongoing commitment to deliver sustained growth to our unit holders and diversify our earnings base with high-quality assets.

"PBF shareholders would also be expected to benefit from this transaction as PBF Energy would receive additional cash, representing approximately one third of the PBF Energy's acquisition price for the Torrance refinery and its logistics assets, to strengthen its balance sheet in anticipation of future opportunities."