Tesoro Logistics to Link its High Plains Pipeline System to Global’s
Basin Transload Facility in Columbus, North Dakota
WALTHAM, Mass.--(BUSINESS WIRE)--Mar. 26, 2013--
Global Partners LP (NYSE: GLP) today announced it has executed a
pipeline connection agreement with Tesoro Logistics whereby Tesoro
Logistics' High Plains Pipeline System will build, own and operate a new
seven-mile pipeline lateral from its Lignite, ND crude oil station to
Global's 100,000 barrel crude oil storage tank at the Basin Transload
facility in Columbus, ND. Crude oil is expected to begin flowing to the
new Columbus-bound branch in the third quarter of 2013, enhancing the
movement of crude from the mid-continent to Global’s destination assets
on the East Coast.
“Strategic expansion of our crude gathering system is a key component of
the rail logistics strategy we are deploying across our assets in the
mid-continent region, ” said Eric Slifka, President and Chief Executive
Officer of Global Partners. “Our agreement with Tesoro Logistics is an
important step toward that objective. The pipeline connection will tie
our Columbus location directly to the Tesoro High Plains Pipeline
System. The new branch will augment the volume of crude currently being
transported by truck from the wellhead to our Columbus storage facility.
The pipeline-connected gathering system will enhance the ratability of
the Columbus terminal, and make the terminal available to a broader area
of the region that may not be accessible by truck. This agreement
increases our efficiency to gather and move price-advantaged crude from
the mid-continent to East Coast refining markets. Of the 738,000 barrels
per day of North Dakota production, Global and its customers are moving
approximately 120,000 barrels per day of that volume to high value
destination markets.”
Tesoro’s High Plains Pipeline System includes an approximate 45,000
barrels per day truck-based crude oil gathering operation and
approximately 700 miles of pipeline and related storage assets. This
system gathers and transports crude oil produced from the Bakken
Shale/Williston Basin area, one of the most prolific onshore crude oil
producing basins in North America.
About Global Partners LP
A publicly traded master limited partnership, Global Partners LP is a
midstream logistics and marketing company. Global is a leader in the
logistics of transporting Bakken and Canadian crude oil and other energy
products via rail, establishing a ‘virtual pipeline’ from the
mid-continent region of the U.S. and Canada to refiners and other
customers on the East and West coasts. Global owns, controls or has
access to one of the largest terminal networks of petroleum products and
renewable fuels in the Northeast, and is one of the largest wholesale
distributors of gasoline, distillates, residual oil and renewable fuels
to wholesalers, retailers and commercial customers in New England and
New York. With a portfolio of approximately 1,000 locations in nine
states, the Partnership is also one of the largest independent owners,
suppliers and operators of gasoline stations and convenience stores in
the Northeast. In addition, the Partnership is a distributor of natural
gas. Global is No. 182 in the Fortune 500 list of America’s largest
corporations. For additional information visit www.globalp.com.
Forward-looking Statements
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limitation, any statement that may project, indicate or imply future
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“may,” “believe,” “should,” “could,” “expect,” “anticipate,” “plan,”
“intend,” “estimate,” “continue,” “will likely result,” or other similar
expressions. In addition, any statement made by Global Partners LP’s
management concerning future financial performance (including future
revenues, earnings or growth rates), ongoing business strategies or
prospects and possible actions by Global Partners LP or its subsidiaries
are also forward-looking statements.
Although Global Partners LP believes these forward-looking statements
are reasonable as and when made, there may be events in the future that
Global Partners LP is not able to predict accurately or control, and
there can be no assurance that future developments affecting Global
Partners LP’s business will be those that it anticipates.
For additional information about risks and uncertainties that could
cause actual results to differ materially from the expectations Global
Partners LP describes in its forward-looking statements, please refer to
Global Partners LP’s Annual Report on Form 10-K for the year ended
December 31, 2012 and subsequent filings the Partnership makes with the
Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on the forward-looking
statements, which speak only as of the date on which they are made.
Global Partners LP expressly disclaims any obligation or undertaking to
update forward-looking statements to reflect any change in its
expectations or beliefs or any change in events, conditions or
circumstances on which any forward-looking statement is based.
Source: Global Partners LP
Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief
Operating Officer and
Chief Financial Officer
or
Edward
Faneuil, 781-894-8800
Executive Vice President,
General
Counsel and Secretary