PBF Logistics plans to acquire a 50% interest in Torrance Valley Pipeline Company (TVPC) from an affiliate of PBF Energy for about $175 million. The two companies expect to close the deal.
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a throughput capacity of 110,000 bpd. The system is comprised of the M55, M1 and M70 pipelines, which are the primary crude gathering and transportation lines supplying the PBF Torrance refinery.
The assets also include 11 pipeline stations with about 1 MMbbls of combined storage capacity and truck unloading capability at two of the stations.
Upon closing, a letter of intent said the two companies will enter into 10-year transportation services agreements with subsidiaries of PBF Energy committing to at least 50,000 bpd for the M1 and M55 pipelines.