SAN ANTONIO, July 12, 2016 (GLOBE NEWSWIRE) -- Valero Terminaling and Distribution Company, an indirect wholly owned subsidiary of Valero Energy Corporation (NYSE:VLO) (“Valero”), announced today that it has purchased the remaining 50 percent membership interest in Parkway Pipeline LLC (“Parkway Pipeline”) from a wholly owned subsidiary of Kinder Morgan Inc. effective June 30, 2016, bringing its total interest in the pipeline to 100 percent.
Parkway Pipeline is a 141-mile, 16-inch products pipeline with 110,000 barrels per day of capacity, with the ability to expand to more than 200,000 barrels per day. The pipeline currently transports refined petroleum products from Valero’s 305,000 barrel per day St. Charles refinery, located in Norco, Louisiana, to Collins, Mississippi for supply into the Plantation pipeline system. Kinder Morgan owns 51 percent of Plantation Pipe Line Co. and operates the Plantation pipeline system.
Valero funded the acquisition with cash.
In addition, Parkway Pipeline separately executed a connection agreement with Colonial Pipeline Co. pursuant to which Parkway Pipeline will construct, own, and operate a new lateral segment to connect the pipeline to the Colonial pipeline system near Collins, Mississippi (“Colonial Connection”).
“The acquisition of Parkway Pipeline and execution of the Colonial Connection further enhance Valero’s ability to grow and optimize its product supply to the eastern United States,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “This demonstrates our disciplined approach to capital allocation where acquisitions are strategic to Valero’s core business and investments are consistent with our strategy to grow our logistics assets.”
Valero Energy Partners LP (NYSE:VLP) has a right of first offer to acquire Valero’s initial 50 percent interest in Parkway Pipeline.
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Valero subsidiaries employ approximately 10,000 people, and its assets include 15 petroleum refineries with a combined throughput capacity of approximately 3.0 million barrels per day, 11 ethanol plants with a combined production capacity of 1.4 billion gallons per year, a 50-megawatt wind farm, and renewable diesel production from a joint venture. Through subsidiaries, Valero owns the general partner of Valero Energy Partners LP (NYSE:VLP), a midstream master limited partnership. Approximately 7,500 outlets carry the Valero, Diamond Shamrock, Shamrock, and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland. Valero is a Fortune 500 company based in San Antonio. Please visit www.valero.com for more information.
John Locke, Vice President – Investor Relations, 210-345-3077
Karen Ngo, Manager – Investor Relations, 210-345-4574
Lillian Riojas, Director – Media Relations and Communications, 210-345-5002
Source:Valero Energy Corporation