Profile: Tesoro Logistics LP (TLLP.K)
17 Apr 2014
Tesoro Logistics LP (TLLP) owns, operates, develops and acquires crude oil and refined products logistics assets. TLLP’s logistics assets are integral to the success of Tesoro Corporation’s (Tesoro’s) refining and marketing operations and are used to gather, transport and store crude oil and to distribute, transport and store refined products. The Company operates in two segments: Crude Oil Gathering and Terminalling, Transportation and Storage. Its assets consist of a crude oil gathering system in the Bakken Shale/Williston Basin area of North Dakota and Montana, eight refined products terminals in the midwestern and western United States, a crude oil and refined products storage facility and five related short-haul pipelines.It generates revenue by charging fees for gathering, transporting and storing crude oil and for terminalling, transporting and storing refined products. Tesoro Logistics GP, LLC is its general partner.
Crude Oil Gathering
TLLP’s crude oil gathering system in North Dakota and Montana, which it refer to as its High Plains system, includes an approximate 27,000 barrels per day truck-based crude oil gathering operation and approximately 700 miles of common carrier pipeline (the High Plains Pipeline) and related storage assets. The Company’s High Plains system consists of TLLP’s crude oil pipelines and trucking operations in the Bakken Shale/Williston Basin area of Montana and North Dakota. The High Plains system has the capacity to deliver up to 85,000 barrels per day to Tesoro's North Dakota refinery, as of December 31, 2011, which was limited to processing 60,000 barrels per day of shipments, and 9,000 barrels per day to a third-party pipeline at Richey, Montana. This system gathers and transports crude oil produced in the Williston Basin including production from the Bakken Shale formation. It refers to this area, a portion of which is serviced by its High Plains system, as the Bakken Shale/Williston Basin area.
As part of its High Plains system, the Company manages a truck-based crude oil gathering operation. This operation uses a combination of trucks, all of which it dispatches and schedules. These trucks gather approximately 27,000 barrels per day of crude oil from well sites or nearby collection points in the Bakken Shale/Williston Basin area and deliver it to the Company’s High Plains system and third-party destinations. Revenues from its pipeline operations accounted for 33%, of its total revenues during the year ended December 31, 2011. In addition, revenues from its trucking services accounted for 22% of its total revenues for the year ended December 31, 2011. The Company entered into a 10-year pipeline transportation services agreement with Tesoro, which the Company refers to as its High Plains Pipeline transportation services agreement. Under this agreement, it charges Tesoro for transporting crude oil from North Dakota origin points on its High Plains system. The Company entered into a trucking transportation services agreement with Tesoro, under which it provides truck-based crude oil gathering services to Tesoro.
Terminalling, Transportation and Storage
The Company owns and operates eight refined products terminals with aggregate truck and barge delivery capacity of approximately 239,300 barrels per day. The terminals provides distribution primarily for refined products produced at Tesoro's refineries located in Los Angeles and Martinez, California (the Los Angeles and Martinez refineries, respectively); Salt Lake City, Utah (the Utah refinery); Kenai, Alaska (the Alaska refinery); Anacortes, Washington (the Washington refinery); and Mandan, North Dakota (the North Dakota refinery). It also owns and operates assets that supports Tesoro's Utah refinery, including a refined products and crude oil storage facility with total shell capacity of approximately 878,000 barrels and three short-haul crude oil supply pipelines and two short-haul refined product delivery pipelines connected to third-party interstate pipelines. Revenues related to terminalling services accounted for 35% of its total revenues during 2011.
The Company also owns a storage facility that receives and stores refined products and crude oil for Tesoro's Utah refinery and five related crude oil and refined products short-haul pipelines. Its refined products terminals are supplied by both Tesoro-owned and third-party common carrier pipelines, as well as by pressurized feed directly from Tesoro refineries, and, in some cases, by truck or barge. The Company own and operates a Los Angeles, California terminal adjacent to Tesoro's Los Angeles refinery. The terminal receives gasoline and diesel from Tesoro's Los Angeles refinery through two 12-inch gasoline pipelines, one 12-inch diesel pipeline, and one 8-inch gasoline pipeline. This terminal includes approximately 6,000 barrels of ethanol storage capacity. It does not have refined product storage capacity at this terminal. TLLP leases its Stockton, California terminal from the Port of Stockton. This terminal also has six storage tanks with 20,000 barrels of diesel capacity and 46,000 barrels of gasoline capacity. The Company owns and operates a Salt Lake City, Utah terminal adjacent to Tesoro's Utah refinery. The terminal also has one 11,000 barrel gasoline storage day tank and one 7,000 barrel ethanol storage tank.
The Company’s Anchorage, Alaska terminal sits on leased property at two adjacent locations within the Port of Anchorage. The terminal also has a rail rack that can hold and unload ten rail cars, is equipped with two offloading pumps and is connected to an eight-inch pipeline. The terminal also has 25 storage tanks, with 252,000 barrels of gasoline capacity, 99,000 barrels of diesel capacity, 400,000 barrels of jet fuel capacity, 118,000 barrels of avgas capacity and 14,000 barrels of transmix capacity. It owns and operates a Mandan, North Dakota terminal located at Tesoro's North Dakota refinery, which is just outside of Mandan, North Dakota. The terminal consists of a truck loading rack located within the refinery gates. The Company’s Vancouver, Washington terminal is leased from the Port of Vancouver. The terminal has a three-car ethanol rail unloading rack. The terminal also includes six storage tanks with 160,000 barrels of diesel capacity, 130,000 barrels of gasoline capacity and 8,000 barrels of ethanol capacity.
The Company owns and operates two Boise and Burley terminals in Idaho located in Boise and Burley. Its Boise terminal is a truck loading facility that receives a variety of refined products from Tesoro's Utah refinery, including gasoline, diesel, and jet fuel through a third-party common carrier pipeline, as well as ethanol received by truck. The truck loading rack includes three loading bays for light products and a fourth bay solely for off-loading ethanol. The terminal also includes eight storage tanks, with 144,000 barrels of gasoline capacity, 34,000 barrels of jet fuel capacity, 54,000 barrels of diesel capacity, 21,000 barrels of ethanol capacity and 1,000 barrels of transmix capacity. Its terminal is a truck loading facility that receives gasoline and diesel from Tesoro's Utah refinery through a third-party common carrier pipeline, as well as ethanol received by truck. The truck loading system includes a two-bay truck loading rack. The Burley terminal also includes five storage tanks with 66,000 barrels of diesel capacity, 81,000 barrels of gasoline capacity and 800 barrels of ethanol capacity.
The Company owns and operates a crude oil and refined products storage facility in Salt Lake City, Utah, which consists of 13 tanks with 878,000 barrels of shell tank storage capacity. The storage tanks are connected to Tesoro's Utah refinery through its four interconnecting pipelines that run between the two facilities, but are not directly connected to TLLP’s Salt Lake City terminal. The storage facility supplies crude oil to Tesoro's Utah refinery and receives refined and intermediate products, including gasoline, diesel and jet fuel, from the refinery. It also owns three short-haul crude oil pipelines, each approximately two miles long, which allows the storage facility to receive crude oil from third-party crude oil pipelines. In addition, the Company owns two refined products pipelines, each approximately three miles long that transports gasoline and diesel from Tesoro's Utah refinery to the origin point of a third-party products pipeline. Refined products delivered through these pipelines are delivered to its terminals in Boise and Burley, as well as third-party terminals.
Tesoro Logistics LP
19100 Ridgewood Pkwy
SAN ANTONIO TX 78259-1828
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