Holly Energy Partners, L.P. (Holly Energy) announces the acquisition of a 50% interest in Cheyenne Pipeline LLC, owner of the Cheyenne pipeline, in exchange for a contribution of US$42.5 million in cash to Cheyenne Pipeline LLC.
The other 50% interest is owned by an affiliate of Plains All American Pipeline, L.P. (Plains), who will continue to operate the Cheyenne pipeline.
The 87 mile crude oil pipeline, which runs from Fort Laramie, Wyoming to Cheyenne, Wyoming, has an 80 000 bpd capacity.
Following the closing of the acquisition, Cheyenne Pipeline LLC and a subsidiary of HollyFrontier Corporation (HollyFrontier) executed a long-term extension and increase of HollyFrontier’s minimum volume commitment on the Cheyenne pipeline.
Edited from source by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/07062016/holly-energy-acquires-interest-in-cheyenne-pipeline/