Valero Energy Corp. (NYSE: VLO) said on July 12 it bought Kinder Morgan Inc.'s (NYSE: KMI) 50% stake in Parkway Pipeline LLC, previously a joint venture between the two companies.
The move will give Valero increased access to the eastern U.S. by connecting the pipeline to Colonial Pipeline Co.'s system that runs from Houston to New York Harbor.
The Parkway system currently is a 110,000 barrels per day (bbl/d) 16-inch products pipeline that runs from Valero's refinery in Norco, La., to Kinder Morgan's Plantation Pipeline System in Collins, Miss. The line could be expanded to more than 200,000 bbl/d, Valero said.
Valero funded the acquisition with cash, and did not disclose the price it paid.
RELATED: Kinder Morgan Sells Half Of Pipeline To Best Customer For $1.5 Billion
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