Home / Business / Tesoro to buy Flint Hills assets in Anchorage, Fairbanks

Tesoro to buy Flint Hills assets in Anchorage, Fairbanks

FAIRBANKS, Alaska — Tesoro Corp. has announced that its Alaska affiliate will purchase a portion of Flint Hills Resources assets in Fairbanks and Anchorage.

Under the agreement, Tesoro Alaska will acquire a terminal at Fairbanks International Airport, including storage for 22,500 barrels of jet fuel. The San Antonio, Texas-based company has agreed to a multi-year contract with the North Pole terminal to provide better access to Interior Alaska, The Fairbanks Daily News-Miner reported Monday (http://bit.ly/1P4UIz0).

The deal also includes the purchase of all Flint Hills’ wholesale fuel marketing contracts in Alaska. Tesoro will also gain an Anchorage terminal with 580,000 barrels of in-service storage capacity, a truck rack and rail loading capability.

“This investment represents our commitment to efficiently and reliably serve customers in the state of Alaska,” said Greg Goff, chairman, president and chief executive officer of Tesoro Corp., in a statement. “We have been a part of the Alaska community since 1969, and over the last five years we have invested more than $300 million in our Alaska operations. We look forward to continuing our operations in the state.”

The former Flint Hills refinery in North Pole, which opened in 1977, is not included in the purchase. Flint Hills shut down refining operations there in 2014 and converted the facility into a fuel terminal.

Marisa Sharrah, a spokeswoman for Flint Hills in Alaska, said the company will maintain ownership of the terminal and its employees will continue handling fuel. They will begin distributing Tesoro’s fuel once the deal is closed.

Alaska Gov. Bill Walker praised Monday’s announcement, saying it would allow Tesoro to better serve its Alaska customers.

“This news further proves that business is alive and well in Alaska, and investors are optimistic about the opportunities that lie ahead in our state,” he said in a statement.

The deal is expected to finalize before February.

In related news, ConocoPhillips approves $900 million project in National Petroleum Reserve-Alaska.

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.