SAN ANTONIO (AP) -- The oil refiner Tesoro Corp. said Wednesday that it has agreed to buy Chevron Pipe Line Co.'s Northwest Products System for $400 million.
The Northwest Products System includes the Northwest Product Pipeline, a 760-mile regulated pipeline that extends from Utah to Washington, a separate five-mile jet fuel pipeline to the Salt Lake City International Airport and the Northwest Terminalling Co., which includes three refined product terminals in Idaho and Washington.
The San Antonio-based oil refiner said the combination of the system with its existing terminal assets in the region will help lower overall costs and increase third-party revenue.
The pipeline receives products from five refineries and one pipeline in the Salt Lake City area. Delivery volumes on the system averaged about 84,000 barrels per day in 2011. The terminals have a total storage capacity of 1.3 million barrels and delivered about 51,000 barrels per day in 2011, Tesoro said.
Tesoro shares rose 41 cents to $41.27 in morning trading. They are near the high end of their 52-week range of $20.77 to $44.73.