The owner of the Yorktown Refinery announced Thursday that the sale of the refinery and terminal has closed.
Western Refining, Inc. announced that it has closed on the sale of its Yorktown facilities and a segment of its crude oil pipeline in southeast New Mexico to Plains Marketing, L.P. and Plains Pipeline, L.P., both subsidiaries of Plains All American Pipeline, L.P., for approximately $220 million. The transaction includes substantially all of Western’s Yorktown assets, including both the terminal and idled refinery, and an 82 mile-segment of a 424-mile crude oil pipeline in New Mexico.
The sale was first announced Dec. 1.
Western Refining announced it would suspend refining operations at the Yorktown Refinery in August 2010. In a statement then to the press, Western’s President and CEO Jeff Stevens cited the ongoing poor economy as the reason to shut down. The refinery employed about 250 people, plus an additional 100 contractors. Production stopped in mid-September 2010, although Western had continued to operate the Yorktown products terminal.
Plains has previously said that it plans to disassemble and sell surplus equipment located at the refinery site and “enhance the connectivity and performance” of the Yorktown terminal during the next 18-24 months. Plains has not provided a timeline for when the terminal will be operational.
Western will retain its East Coast wholesale business and continue to market products in the Mid-Atlantic region. Western expects to record a non-cash loss on disposition of these assets of $440 to $460 million for the fourth quarter.