UPDATE 2-United Refining to buy New York marine terminal

(Updates with comment from company)

* 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 (Reuters) - United Refining Inc has agreedto buy Phillips 66's marine terminal and associatedassets near New York Harbor, a deal that will add afive-million-barrel oil storage facility to the company'sNortheast assets, the two companies said on Tuesday.

Pending regulatory approval, United Riverhead Terminal Inc,an affiliate of United Refining, will take ownership of theRiverhead, New York, terminal, about 80 miles (128.7 km) east ofthe New York Harbor, at the end of October.

Terms of the deal were not disclosed.

The marine terminal is currently used to store and shipcrude oil, heavy fuels, diesel and gasoline. Its offshore marineplatform is the only deepwater loading and unloading facility onthe U.S. East Coast and can handle Suezmax vessels andVery-Large Crude Carriers (VLCC) tankers.

United Refining declined to say if the deal will have along-term effect on the type of crude it processes at its 65,000barrel-per-day refinery in Warren, Pennsylvania.

"We're not making public what we intend to do with theterminal," said John A. Catsimatidis, chairman and chiefexecutive of United Refining Company.

Catsimatidis said, however, that his company will lease someof the terminal's storage tank capacity to other firms and hasno immediate plans to send the crude oil it receives at theterminal to the Pennsylvania refinery.

Almost all of the crude supplies to the refinery come fromCanada and northern plain states via an Enbridgepipeline, according to a company filing with the Securities andExchange Commission.

Phillips 66 said in a statement that the terminal's sale ispart of its strategy to divest assets that do not fit with itslong-term business objectives.

Houston, Texas-based Phillips recently sold its 185,000barrel-per-day refinery in Trainer, Pennsylvania to MonroeEnergy, LLC, a subsidiary of Delta Air Lines Inc .

(Reporting by Selam Gebrekidan; Editing by Bob Burgdorfer andGunna Dickson)

((selam.gebrekidan@thomsonreuters.com)(646 223 6125)(ReutersMessaging: selam.gebrekidan.reuters.com@reuters.net))