Valero Acquires 100 Percent Ownership of Parkway Pipeline
July 12 2016 - 04:43PM
Valero Terminaling and Distribution Company, an indirect wholly
owned subsidiary of Valero Energy Corporation (NYSE:VLO)
(“Valero”), announced today that it has purchased the remaining 50
percent membership interest in Parkway Pipeline LLC (“Parkway
Pipeline”) from a wholly owned subsidiary of Kinder Morgan Inc.
effective June 30, 2016, bringing its total interest in the
pipeline to 100 percent.
Parkway Pipeline is a 141-mile, 16-inch products
pipeline with 110,000 barrels per day of capacity, with the ability
to expand to more than 200,000 barrels per day. The pipeline
currently transports refined petroleum products from Valero’s
305,000 barrel per day St. Charles refinery, located in Norco,
Louisiana, to Collins, Mississippi for supply into the Plantation
pipeline system. Kinder Morgan owns 51 percent of Plantation Pipe
Line Co. and operates the Plantation pipeline system.
Valero funded the acquisition with cash.
In addition, Parkway Pipeline separately
executed a connection agreement with Colonial Pipeline Co.
pursuant to which Parkway Pipeline will construct, own, and operate
a new lateral segment to connect the pipeline to the Colonial
pipeline system near Collins, Mississippi (“Colonial
Connection”).
“The acquisition of Parkway Pipeline and
execution of the Colonial Connection further enhance Valero’s
ability to grow and optimize its product supply to the eastern
United States,” said Joe Gorder, Valero Chairman, President and
Chief Executive Officer. “This demonstrates our disciplined
approach to capital allocation where acquisitions are strategic to
Valero’s core business and investments are consistent with our
strategy to grow our logistics assets.”
Valero Energy Partners LP (NYSE:VLP) has a right
of first offer to acquire Valero’s initial 50 percent interest in
Parkway Pipeline.
About Valero Valero Energy
Corporation, through its subsidiaries, is an international
manufacturer and marketer of transportation fuels, other
petrochemical products and power. Valero subsidiaries employ
approximately 10,000 people, and its assets include 15 petroleum
refineries with a combined throughput capacity of approximately 3.0
million barrels per day, 11 ethanol plants with a combined
production capacity of 1.4 billion gallons per year, a 50-megawatt
wind farm, and renewable diesel production from a joint venture.
Through subsidiaries, Valero owns the general partner of Valero
Energy Partners LP (NYSE:VLP), a midstream master limited
partnership. Approximately 7,500 outlets carry the Valero,
Diamond Shamrock, Shamrock, and Beacon brands in the United States
and the Caribbean; Ultramar in Canada; and Texaco in the United
Kingdom and Ireland. Valero is a Fortune 500 company based in
San Antonio. Please visit www.valero.com for more information.
Valero ContactsInvestors: John Locke, Vice
President – Investor Relations, 210-345-3077 Karen Ngo, Manager –
Investor Relations, 210-345-4574Media: Lillian Riojas, Director –
Media Relations and Communications, 210-345-5002
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