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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV