Tesoro, Chevron to amend US northwest pipeline-terminals deal: FTC

17 June 2013 22:42  [Source: ICIS news]

HOUSTON (ICIS)--US oil refiner Tesoro and one of its subsidiaries, Tesoro Logistics Operations, have agreed to sell their light petroleum products terminal in Boise, Idaho, as part of a deal with the Federal Trade Commission (FTC) to avoid anti-competition charges, the FTC announced on Monday.

Tesoro earlier this year agreed to acquire pipeline and terminal assets from US energy giant Chevron for $335m (€251m), but the FTC required that Tesoro sell the Boise terminal because the company would have owned two of the three full service light petroleum terminals in Boise.

“The proposed order announced today is another example of the [FTC’s] work to protect competition in US petroleum markets, which are critical to consumers,” said Richard Feinstein, director of the FTC’s Bureau of Competition. “The sale of Tesoro’s terminal will preserve the competitive conditions that exist today for terminal customers in Boise.”

The FTC noted that Tesoro owns several petroleum products terminals, including its terminal in Boise that receives light petroleum from the Northwest Products Pipeline, a 760-mile (1,200-km) long interstate pipeline owned by Chevron that carries petroleum products from Salt Lake City to Idaho and Washington. Chevron also owns petroleum terminals along the Northwest Pipeline in Idaho and Washington state, including one in Boise, the FTC said.

Under the FTC’s proposed order, Tesoro is required to sell its Boise terminal to an FTC-approved buyer within six months of the order becoming final. Afterward, Tesoro can purchase the Northwest Products Pipeline and associated terminals from Chevron.

The FTC agreement will be subject to public comment for 30 days, beginning Monday and lasting through 20 July, after which the FTC will decide whether to make it final.

($1 = €0.75)

By: Jeremy Pafford
+1 713 525 2653

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