NuStar Energy L.P. (NS) said Monday it has agreed to sell its San Antonio refinery and related assets to Calumet Specialty Products Partners L.P. for $100 million, plus closing date inventory estimated to be $15 million.
The asset sale includes a terminal in Elmendorf, Texas and a pipeline connecting the terminal and refinery.
NuStar purchased the refinery and terminal out of bankruptcy in April 2011 for $41 million, and the company has invested approximately $54 million since then on improvements to the refinery.
NuStar announced its plans to sell the refinery last month as part of its strategic redirection away from the earnings volatility associated with the margin-based refining business.
NuStar will use proceeds from the transaction, which is expected to have an effective date of January 1, 2013 and close on January 2, to fund the growth of those fee-based pipeline and storage operations.
Located on the South Side of San Antonio, the 14,500-barrel-per-day refinery produces and sells various products, including jet fuels, ultra-low sulfur diesel, naphtha, liquefied petroleum gas, among others, to commercial and retail customers and the U.S. military.
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