Business/Economy

Petro Star to buy fuel storage terminal at Anchorage port

Tesoro has found a buyer for a fuel storage terminal at the Port of Anchorage that the state is requiring the company to sell.

Petro Star Inc., a subsidiary of Arctic Slope Regional Corp., will acquire Terminal 1, the Alaska Native corporation said in a news release Tuesday. The sale is expected to close this summer.

Last year, the Alaska Department of Law required the sale of the terminal in order to prevent Tesoro from having a gasoline monopoly. The move by the state came after Tesoro gained more fuel storage in North Pole in a purchase from Flint Hills Resources.

"Alaska has some of the highest fuel costs in the country," said Alaska Attorney General Jahna Lindemuth in a written statement. "With the loss of Flint Hills, our goal in requiring the sale of Terminal 1 is to increase and encourage competition for the sale of fuel by bringing a new competitor into this market."

The Anchorage fuel storage terminal purchase includes 200,000 barrels of storage, along with other facilities. Petro Star was chosen after a competitive bid process, ASRC said in its news release.

"Petro Star has been looking for ways to expand into the largest fuel market in the state for quite some time," said Doug Chapados, Petro Star president, in a statement. "Until now, we did not have storage or fuel distribution facilities in Southcentral; Terminal 1 gives us both as well as access to the Port of Anchorage for receiving barge deliveries."

The sale is expected to close in about a month, said Angela Speight, Petro Star vice president and general counsel. The companies are not discussing the purchase price, she said. 

Petro Star plans to use the space for gasoline, jet fuel and ultra-low sulfur diesel fuel, Speight said.

Annie Zak

Annie Zak was a business reporter for the ADN between 2015 and 2019.

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