SAN ANTONIO - March 10, 2014 - Tesoro Logistics LP ("TLLP") announced today that in response to interest from a higher than expected number of potential shippers, it is extending its binding open season for firm priority capacity on the Tesoro High Plains Pipeline system ("THPP") until April 4, 2014 at noon central time. TLLP also announced that to maximize the number of potential shippers on the system, the size of bid tranches would be reduced to 5,000 barrels per day (bpd), for both Phase 1 and Phase 2.
As previously announced, the proposed THPP capacity expansion would be executed in two phases: Phase I will provide incremental capacity to transport up to approximately 70,000 barrels per day (bpd) of crude petroleum from various locations south of Lake Sakakawea, including Johnson's Corner, Keene, Blue Buttes and Charlson Station, to Ramberg Station by July 1, 2014. Phase II will provide incremental pipeline capacity of up to 90,000 bpd from Ramberg to Stampede, with an expected in-service time frame of second half of 2015. The in-service time frames are subject to THPP obtaining sufficient commitments from shippers as well as regulatory and internal approvals.
Concurrent with the start of the open season, TLLP also announced its proposal to expand the Bakken Area Storage Hub ("BASH") terminal facility. TLLP is also extending the time for potential customers to submit offers for BASH storage space until April 4, 2014.
Located near THPP's Ramberg Station, BASH is expected to have capabilities to allow shipper access to/ from multiple pipelines and rail loading facilities in the area, including Enbridge's North Dakota Pipeline System, the proposed Sandpiper Pipeline, Crestwood's COLT rail facility and/or Global's Stampede rail facility in Columbus, N.D. Initial storage capacity at BASH is expected to be at least 1.0 million barrels of crude oil with the first 360,000 barrels of working storage capacity currently under construction anchored by Tesoro Refining & Marketing Company LLC. TLLP currently owns or has rights to acquire sufficient land to expand capacity at BASH to at least 2.5 million barrels.
The binding open season commenced on February 4, 2014 and will end at noon central time on April 4, 2014. Bona fide potential shippers that would like to receive copies of the open season documents, including throughput and deficiency agreements and proposed tariff(s) must first sign a confidentiality agreement (requested by emailing THPPOpenSeason@tsocorp.com, or by going to www.tesorologistics.com, and selecting the "High Plains Open Season" link on the left navigation bar). In addition, shippers will have the opportunity to enter into terminalling service agreements that are not part of the binding open season, for storage at the BASH terminal facilities. Parties who sign a confidentiality agreement may also request documentation covering proposed terms of the storage services to be provided at the BASH terminal. TLLP expects to finalize agreements for committed storage at the BASH terminal during the same time period as the open season for the pipeline capacity expansion.
More information about the binding open season for pipeline expansion or the proposed BASH Project is available by contacting Mark Smith, VP Business Development at (210) 626-4808 or Carlos Mata, Director Logistics Strategy at (210) 626-6480 or via email at THPPOpenSeason@tsocorp.com.
The THPP System
The THPP System is currently an open stock system transporting crude to Tesoro's Mandan, N.D. refinery as well as outbound delivery points at Richey Station in eastern Montana, Dry Fork Station, Enbridge Beaver Lodge and Stampede, N.D. with approximate capacity of 110,000 bpd. Pursuant to the proposed binding open season approximately 160,000 bpd of incremental capacity will be added.
About Tesoro Logistics LP
Tesoro Logistics LP, headquartered in San Antonio, Texas, is a fee-based, growth-oriented Delaware limited partnership formed by Tesoro Corporation to own, operate, develop and acquire crude oil and refined products logistics assets.
This press release contains certain statements that are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, concerning the expectation of the stated completion timeframes and capacities of the Bakken Area Storage Facility and Phase I and Phase II of the High Plains Pipeline system expansion; and the capability for the Bakken Area Storage Facility to allow shipper access from/to multiple pipelines and rail loading facilities in the area. For more information concerning factors that could affect these statements see our annual report on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission. We undertake no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances that occur, or which we become aware of, after the date hereof.
Contact:
Investors:
Chris Castro, Investor Relations Manager, (210) 626-7202
Media:
Tesoro Media Relations, media@tsocorp.com, (210) 626-7702
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Tesoro Logistics LP via Globenewswire
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