June 9 TrailStone, a start-up commodity merchant
backed by private equity firm Riverstone Holdings LLC, has
gained entry to the North American physical oil markets with a
deal to buy a small refinery and logistics firm in the Pacific
In its first major deal since launching a year ago,
TrailStone paid an undisclosed sum to buy U.S. Oil and Refining
Co.'s 42,000 barrel per day refinery in Tacoma, Washington, the
company said in a statement Monday.
It will also gain 2.7 million barrels of storage capacity, a
fleet of 630 rail cars, several barges, and a deepwater terminal
along the coast, which is emerging as an important hub for
shipping Bakken and Canadian crude.
Astra bought the refinery in 2006. The trader, a unit of
Astra Transcor Energy N.V., a holding company registered in
Rotterdam, ran a physical trading business around the asset.
Because Riverstone operates Canadian upstream assets, TrailStone
may be able to use the refinery to position itself in physical
"TrailStone endeavors to be a leading global asset-backed,
logistics and trading company," Chief Executive Officer David
Silbert said. "This transaction represents a significant
advancement to that end."
U.S. Oil started receiving about 40,000 bpd of Bakken crude
in November 2012 when its offloading operation began. The
refinery was the second on the West Coast to start rail
offloading, after Tesoro Corp.'s plant at Anacortes, Washington.
The refinery has a dedicated jet fuel pipeline to Joint Base
Lewis-McChord, a U.S. military installation close to Tacoma,
The company didn't disclose the price paid for the refinery.
Deutsche Bank Securities acted as a financial advisor to U.S.
(Reporting by Jessica Resnick-Ault in New York and Kristen Hays
in Houston; Editing by Bernadette Baum)