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Tesoro closes acquisition of marketing and logistics assets in Alaska

LBR Staff Writer Published 23 June 2016

Tesoro, through its affiliates Tesoro Alaska Company and Tesoro Alaska Terminals, has closed the previously announced acquisition of Flint Hills Resources' (FHR) wholesale marketing and logistics assets in Anchorage and Fairbanks, Alaska.

Consistent with the details of the transaction announced late in 2015, the acquisition includes:

all FHR wholesale fuel marketing contracts in Alaska;

an Anchorage terminal with 580,000 barrels of total in-service storage capacity, a truck rack, and rail loading capability;

a Fairbanks airport terminal that includes 22,500 barrels of in-service jet fuel storage and truck rack; and

a multi-year terminalling agreement at FHR's North Pole terminal, which will provide efficient rail offload capabilities and provide Tesoro access to Alaska's Interior.

The former FHR North Pole refinery is not part of this acquisition.

"This acquisition enhances our capabilities to efficiently and reliably serve our customers in the state of Alaska," said Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation.

The rail loading capabilities gained through this acquisition improves Tesoro's ability to serve customers in the Alaska interior from Anchorage. Tesoro plans to offer these assets to the master limited partnership, Tesoro Logistics LP, in the near future.

Tesoro has agreed with the State of Alaska Attorney General to offer for divestment approximately 25 percent of its existing Tesoro Logistics Anchorage product terminal capacity (approximately 830,000 barrels in total), in order to complete the current FHR acquisition in a timely manner.

Source: Company Press Release