Inspectioneering
News

Andeavor Logistics Acquires 575-mile Pipeline System, Commits to Building NGL Logistics Hub

Inspectioneering Staff, February 19, 2018

Texas-based pipeline and storage company Andeavor Logistics LP recently announced an agreement to acquire the Wamsutter Pipeline System from Plains All American Pipeline, L.P. for total consideration of $180 million. The system consists of 575 miles of active pipelines that transport advantaged crude oil to Salt Lake City refineries, including Andeavor. Andeavor Logistics expects the assets to provide annual net earnings of $8 to $12 million and EBITDA of $20 to $24 million, including synergies. The acquisition, which is subject to customary closing conditions including regulatory approval, is anticipated to close in the first half of 2018. 

"We have made significant progress with the execution of our growth strategy, which is focused on high-return organic growth, accretive acquisitions and drop downs," said Steven Sterin, Executive Vice President, CFO of Andeavor and President and CFO of Andeavor Logistics' general partner.

Andeavor also rencently announced its intent to build and operate the North Dakota Logistics Hub to further participate in the natural gas liquids (NGL) value chain and provide logistics solutions for increasing Bakken NGL production. The project will convert a segment of the Andeavor Bakkenlink crude oil pipeline into NGL service to enable the movement of mixed NGLs from a new third-party gas processing facility in central McKenzie County, North Dakota to a newly expanded fractionation complex at the Andeavor Logistics Belfield processing facility. From the fractionation complex, products will be shipped to the nearby Andeavor Fryburg rail terminal for manifest and unit train rail movements and will be consumed within Andeavor's refineries as well as marketed, including international markets, by Andeavor. Project volumes are supported by a long-term gas processing facility dedication and minimum volume commitment. The estimated capital investment is expected to be $140 to $150 million and partial commercial operations are estimated to begin in late 2018, with full operations commencing in the first quarter of 2019. 


Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.


Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Case Studies

Learn from the experience of others in the industry.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Acronyms

Commonly used asset integrity management and inspection acronyms.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.