United Refining to buy New York marine terminal

NEW YORK Tue Oct 9, 2012 3:52pm EDT

NEW YORK (Reuters) - United Refining Inc has agreed to buy Phillips 66's (PSX.N) marine terminal and associated assets near New York Harbor, a deal that will add a five-million-barrel oil storage facility to the company's Northeast assets, the two companies said on Tuesday.

Pending regulatory approval, United Riverhead Terminal Inc, an affiliate of United Refining, will take ownership of the Riverhead, New York, terminal, about 80 miles east of the New York Harbor, at the end of October.

Terms of the deal were not disclosed.

The marine terminal is currently used to store and ship crude oil, heavy fuels, diesel and gasoline. Its offshore marine platform is the only deepwater loading and unloading facility on the U.S. East Coast and can handle Suezmax vessels and Very-Large Crude Carriers (VLCC) tankers.

United Refining declined to say if the deal will have a long-term effect on the type of crude it processes at its 65,000 barrel-per-day refinery in Warren, Pennsylvania.

"We're not making public what we intend to do with the terminal," said John A. Catsimatidis, chairman and chief executive of United Refining Company.

Catsimatidis said, however, that his company will lease some of the terminal's storage tank capacity to other firms and has no immediate plans to send the crude oil it receives at the terminal to the Pennsylvania refinery.

Almost all of the crude supplies to the refinery come from Canada and northern plain states via an Enbridge (ENB.TO) pipeline, according to a company filing with the Securities and Exchange Commission.

Phillips 66 said in a statement that the terminal's sale is part of its strategy to divest assets that do not fit with its long-term business objectives.

Houston, Texas-based Phillips recently sold its 185,000 barrel-per-day refinery in Trainer, Pennsylvania to Monroe Energy, LLC, a subsidiary of Delta Air Lines Inc (DAL.N).

(Reporting by Selam Gebrekidan; Editing by Bob Burgdorfer and Gunna Dickson)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.