The company is selling the refinery as a part of its business strategy to dispose the margin-based refining business and use the proceeds to develop and grow its fee-based pipeline and storage operations.
NuStar’s oil refinery located on the south side of San Antonio has a capacity of 14,500 barrel per day and it produces various saleable products including jet fuels, ultra-low sulfur diesel, naphtha, reformates, liquefied petroleum gas, specialty solvents and other highly specialized fuels.
The Elmendorf terminal situated about approximately 19.3km from the refinery stores the refinery processed crude oil.
NuStar Energy president and CEO Curt Anastasio said, "As we stated when we announced our intent to sell the refinery, it was an excellent opportunistic purchase for us, even though fuels refining wasn’t part of our strategic plan."
Commenting on the latest transaction, Anastasio said it will give an opportunity to the refinery employees to be a part of a refining firm with multiple refineries.
"This is especially important since we completed a joint venture for our asphalt refining assets with Lindsay Goldberg that essentially makes the San Antonio refinery a ‘stand-alone’ facility, which is a very difficult position for a refinery because it limits resources and available capital," Anastasio added.
The company will also sell its inventory to Calumet, which is currently valued at $15m. NuStart is expecting to close the deal on 2 January 2013.
