Holly Energy Partners LP, a Dallas-based energy company that owns petroleum processing and transportation facilities throughout the West, including the Holly Refinery in Woods Cross, has entered into agreements to acquire full ownership of two crude-oil pipelines that terminate in Utah. The company already owns part of both systems.
Holly will acquire the remaining 50 percent of Frontier Aspen LLC, the owner of the Frontier Aspen Pipeline, and the remaining 75 percent of Salt Lake City Pipeline from affiliates of Plains All American Pipeline LP. Holly will pay an aggregate $250 million for the pipelines. The closing of each transaction is conditioned on the closing of the other transaction. Holly Energy said it expects to finance the transaction with a combination of debt and equity
The Frontier Aspen Pipeline is a 289-mile crude pipeline from Casper, Wyoming, to Frontier Station, Utah, that supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection to the Salt Lake City Pipeline. The Salt Lake City Pipeline is a 95-mile crude pipeline that transports crude oil into the Salt Lake City area from the Utah terminal of the Frontier Pipeline and from the Wahsatch station.
Holly said that the acquired interest in both pipelines is expected to generate approximately $23 million in annual forecasted pre-tax revenue.