Under the terms of the deal, Valero Energy Partners will acquire two terminals that support Corpus Christi East and West refineries of Valero.
The assets considered for the sale also include 134 tanks, which have 10.1 million barrels of storage capacity for crude oil, intermediates, and refined petroleum products.
Valero Energy Partners general partner CEO Joe Gorder said: "With transactions totaling $1.14 billion, we’ve exceeded our $1 billion target for acquisitions in 2015.
"We’re on course to deliver year-over-year distribution growth in excess of 25%."
The fee-based master limited partnership, Valero Energy Partners expects the new business to contribute earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $50m in its first full year of operation.
The firm is also planning to signs a 10-year terminaling agreement with a subsidiary of Valero, upon completion of the transaction on 1 October.
Valero, which plans to advance capital investments to boost its North American crude oil processing capability, is developing two crude topping units at the Corpus Christi and Houston refineries with planned completing in the first quarter of 2016.
Earlier this year, the company said it also plans to assess refining growth investments that upgrade low cost natural gas liquids into higher value products, including the St. Charles methanol and the Houston alkylation projects.
Valero Energy forms the Valero Energy Partners to own, operate, develop, and acquire crude oil and refined products pipelines, terminals, and other transportation and logistics assets.
The partnership owns crude oil and refined petroleum products pipeline and terminal systems which are integral to the operations of eight of Valero’s refineries in the Gulf Coast and Mid-Continent regions, US.
Image: Valero Energy Partners has acquired over $1.4bn worth of midstream assets in 2015. Photo: courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net.
