Tesoro Corporation announced today that it will acquire Western Refining at an implied current price of $6.4 billion, including the assumption of approximately $1.7 billion of Western’s net debt and the $605 million market value of non-controlling interest in Western Refining Logistics, LP. The acquisition will add three new refineries to Tesoro’s collection of oil refineries across the US. The three refineries are the St. Paul Park refinery in Minnesota, the El Paso refinery in Texas (actually two refineries: a “North” and “South” refinery) and the Gallup refinery in New Mexico. These refineries have a combined total throughput capacity of 246,500 barrels per day. After the acquisition, Tesoro will have 10 refineries in 8 states with a combined refining capacity of 1.1 million barrels of oil per day.
The St. Paul Park refinery is a 90,500 barrel per day cracking facility with operations including crude fractionation, catalytic cracking, hydrotreating, reforming, alkylation, sulfur recovery and a hydrogen plant operations. The refinery’s strategic location allows direct access, primarily via the Minnesota Pipeline. The complexity of refinery operations allows it to process a variety of light, heavy, sweet and sour crudes into higher value refined products.
The El Paso refinery has crude capacity of approximately 131,000 barrels per day, Fluid Catalytic Cracking Unit (FCCU) capacity of 33,000 barrels per day, alkylation capacity of 12,000 barrels per day and reforming capacity of 26,000 barrels per day.
The Gallup refinery is located on 880 acres near Gallup, New Mexico and is the only active refinery in the Four Corners area. The crude oil throughput of the refinery is approximately 25,000 barrels per day. The Gallup refinery has crude distillation, hydrotreating for naphtha and distillate, reforming for high-octane gasoline production, fluid catalytic cracking unit (FCCU), an isomerization unit to increase the octane of other gasoline streams that enhance high-octane gasoline production, and an alkylation unit to convert produced LPGs back into gasoline.
AIS Software, which provides the E*Doc content management software solutions to Tesoro’s current refineries for their controlled documents and operating procedures, welcomes the new additions to the Tesoro family of oil refineries.
For more information see the following Hydrocarbon Processing news article:
Tesoro to acquire Western Refining