Valero Energy Partners LP approved the acquisition from certain Valero Energy Corp. subsidiaries of the McKee Crude system, Three Rivers Crude system and Wynnewood Products system for $154 million, the company announced June 17. The assets will likely contribute about $15.4 million in EBITDA during their first full year of operation.

The dropdown is expected to close on July 1 and to be funded with Valero Energy Partners’ cash on hand. Upon closing, Valero Energy Partners intends to enter 10-year transportation and terminaling agreements with Valero subsidiaries. The agreements are expected to contain throughput volume commitments accounting for about 90% of expected throughput volumes.

The McKee Crude system is located in Sunray, Texas, and has a throughput capacity of 72,000 barrels per day (bbl/d) and supplies about 40% of the crude oil processed at Valero’s McKee refinery. The system includes more than 200 miles of pipeline, 20 crude oil truck unloading sites with lease automatic custody transfer units and about 240,000 bbl of storage capacity.

The Three Rivers Crude system in the South Texas Eagle Ford Shale region consists of 11 crude oil truck unloading sites with lease automatic custody transfers and a 1-mile, 12-inch pipeline with 110,000 bbl/d of capacity that delivers crude oil to tanks at Valero’s Three Rivers refinery. The system also receives locally produced crude oil from connections to the Harvest Arrowhead and Plains Gardendale pipelines for processing at the Three Rivers refinery or shipment through third-party pipelines to Valero’s Corpus Christi, Texas, refineries.

The Wynnewood Products system is located in Ardmore, Okla., and includes a 30-mile, 12-inch refined petroleum products pipeline with a capacity of 90,000 bbl/d and two tanks with a combined storage capacity of 180,000 bbl. The system connects Valero’s Ardmore refinery to the Magellan refined products pipeline system and is the refinery’s main distribution outlet.