Valero Energy Corporation (NYSE:VLO) reported that its subsidiary unit Valero Logistics UK Ltd, and SemGroup Europe Holding L.L.C. are set to buy SemLogistics Milford Haven fuel storage center on the west coast of Wales. This facility is situated across the Haven from company’s refinery at Pembroke. This deal is expected to be closed in the third quarter of 2018. The company may retain the UK staff currently associated with the business to be bought.
Valero Energy reported that SemLogistics marks as one of the leading storage facility in the United Kingdom with 8.5 million barrels of storage capacity for gasoline blendstocks, storing gasoline, gas oil, diesel, crude oil and naphtha, jet fuel. As much as 67% of the storage capacity of SemLogistics is keot for dual or multiproduct purpose. This indicates Valero will have the flexibility to fulfill customers’ demands in the U.K. as well as across Northwest Europe. Also, Milford Haven will remain as a third-party storage center, providing storage options for third-party consumers across the European petroleum markets.
Joe Gorder, the CEO, President and Chairman of Valero, expressed that Milford Haven is a perfect fit for the company. It complements their fuel terminals and Pembroke refinery in the U.K. and Ireland. This deal will help the company to lower secondary costs and expand the logistics business.
In unrelated news, Valero Energy reported that Michael Ciskowski will retire as CFO and Executive VP effective May 3. His place will be taken by current Treasurer and Senior VP Donna Titzman. Ciskowski has been with the firm since 1985. He became CFO and Executive VP in 2003 after leading company’s Corporate Development department. Titzman has been with the firm since 1986 and became Treasurer a Senior VP in 2013. She also has been the CFO of Valero Energy Partners since 2013.