Global Partners Announces Bakken Pipeline Connection Agreement
Tesoro Logistics to Link its High Plains Pipeline System to Global’s Basin
Transload Facilityin Columbus, North Dakota
WALTHAM, Mass. -- March 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.
Some of the information contained in this news release may contain
forward-looking statements. Forward-looking statements include, without
limitation, any statement that may project, indicate or imply future results,
events, performance or achievements, and may contain the words “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
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.
Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief Operating Officer and
Chief Financial Officer
Edward Faneuil, 781-894-8800
Executive Vice President,
General Counsel and Secretary
Press spacebar to pause and continue. Press esc to stop.