30.11.15. Tesoro Corporation, through its affiliate Tesoro Alaska Company LLC, has agreed to acquire Flint Hills Resources’ (FHR) wholesale marketing and logistics assets in Anchorage and Fairbanks, Alaska.
“The investment represents our commitment to efficiently and reliably serve customers in the state of Alaska,” said Greg Goff, chairman, president and CEO of Tesoro Corporation. “We have been a part of the Alaska community since 1969, and over the past five years we have invested more than US$300 million dollars in our Alaska operations. We look forward to continuing our operations in the state.”
The transaction 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 terminal agreement at FHR’s North Pole terminal, which will provide rail offload capabilities and give Tesoro access to Alaska’s interior.
The former FHR North Pole refinery is not part of the deal.
It also improves Tesoro’s ability to serve customers from its existing Anchorage terminal, as a result of Tesoro gaining access to rail loading capabilities located at the FHR Anchorage terminal. Tesoro expects to offer qualified third parties access to the FHR Anchorage terminal.
The transaction is expected to close within 60 days, pending completion of transition, planning and required consents and approvals.