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Houston's Par Pacific Holdings expands into Pacific NW refining and storage

A Houston oil and gas exploration and production company is expanding into Pacific Northwest markets with a $358 million deal to buy a Washington state refinery.

Par Pacific Holdings Inc. stated that it reached an agreement to acquire U.S. Oil & Refining Co., a privately held refiner in Tacoma, Wash. for $358 million plus net working capital. The acquisition includes a 42,000 bpd refinery, a marine terminal with 15 acres of waterfront, a unit train-capable rail loading terminal, a six-lane truck loading rack and 2.9 MM barrels of refined product and crude oil storage.

The 139-acre Tacoma refinery can process multiple types of crude based on market conditions and is currently benefiting from discounted Bakken and Cold Lake crude oil, according to Par Pacific.

"This transformative acquisition connects our existing assets in Hawaii, Pacific Northwest and the Rockies to create an integrated downstream network with significantly enhanced scale and diversification," said William Pate, President and CEO of Par Pacific Holdings, in a statement. "We have been executing an ambitious strategic growth plan focused on attractive downstream markets for over three years and the acquisition of US Oil further demonstrates the progress we have made. We believe that this transaction provides a strong platform for earning and cash flow growth."

Source: Houston Chronicle

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