According to the company, the partnership has the capacity to produce and market over 36 million barrels of asphalt and light products.
The assets acquired by NuStar Energy include a 74,000 barrel-per-day (BPD) asphalt refinery in Paulsboro, New Jersey; a 30,000BPD asphalt refinery in Savannah, Georgia, and three asphalt terminals. Combined, these assets contribute 4.8 million barrels of storage capacity.
NuStar also gains access to 15 terminals with a total storage capacity of approximately 2.1 million barrels that are leased from various third parties.
In connection with the acquisition, NuStar Energy has entered into supply agreements with Petroleos de Venezuela (PDVSA). This includes a commitment by PDVSA to supply NuStar Energy an annual average of 75,000BPD of crude oil over a minimum seven-year period and a right of first offer to purchase up to nearly 11,000BPD of paving-grade asphalt and approximately 13,000BPD of roofing-flux asphalt each year for marketing and sale.
Bill Greehey, chairman of NuStar Energy and NuStar GP Holdings, said: We’re excited to have completed this acquisition as we now have a leading presence in one of the most attractive asphalt markets in the country and a solid footing in what we see as a great business going forward.
