Western Refining, Inc. (NYSE:WNR) announced Wednesday that it has entered into an agreement for the acquisition of the 25,000 barrel per day (bpd) idled Wingate Fractionation Plant in Gallup, New Mexico from ConocoPhillips Company. The Wingate facility includes rail loading and offloading capabilities and storage facilities in addition to natural gas liquids (NGL) fractionation capability. The transaction is expected to close in early October 2014. Terms of the transaction were not disclosed.
Jeff Stevens, Western’s President and Chief Executive Officer said, “The strategic location of the Wingate facility is a great addition to the logistical assets of Western. It is conveniently located near our Gallup Refinery. This transaction will afford Western greater flexibility in the Four Corners region as it will provide approximately 125,000 barrels of pipeline-connected seasonal NGL storage for our Gallup Refinery; crude oil loading and transportation capabilities, both east and west, through the rail loading terminal; and pipeline connectivity to Western Refining Logistics, LP (NYSE:WNRL) assets.”
Stevens continued, “We will work closely with ConocoPhillips to ensure a smooth transition. This is a great example of our people identifying opportunities to build the long-term capabilities of both WNR and WNRL.”