* Terms of the deal with Phillips 66 not disclosed
* Terminal has 5 million barrels of storage capacity
* It is located 80 miles east of New York Harbor
NEW YORK, Oct 9 United Refining Inc has agreed
to buy Phillips 66's 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 (128.7 km) 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
pipeline, according to a company filing with the Securities and
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.