Valero to acquire Semgroup’s UK fuel storage facility

Valero Logistics UK has agreed to buy SemLogistics business unit, a petroleum storage facility owned by SemGroup in the United Kingdom, according to a company release.

Located in Milford Haven, it is one of the largest petroleum products storage facilities in the UK with 8.5 million barrels of capacity for storing gasoline, gasoline blendstocks, naphtha, jet fuel, gas oil, diesel, and crude oil.

Its multiproduct storage capacity and continued operation as a third-party storage facility will support Valero’s growth strategies in logistics business.

“This facility complements our Pembroke refinery and fuel terminals in the UK and Ireland, making it a natural fit for the company,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer.

Valero Logistics UK, operator of terminals and pipelines in the UK and subsidiary of Valero Energy Corporation, expects to retain the SemLogistics employees.

The acquisition is set to close by the end of the third quarter of 2018, subject to customary regulatory approvals.

Carlin Conner, SemGroup President and Chief Executive Officer, said: “We are pleased to execute this transaction and to reach another milestone in our plan to divest non-core legacy assets and move forward with a more focused North American midstream strategy.”