After negotiations involving Tesoro and the State of Alaska, Petro Star Inc. is one step closer to owning Terminal 1 at the Port of Anchorage. This will introduce a new source of fuel to Alaska’s largest city and allow PSI to distribute its refined products into Southcentral Alaska through its own terminal operations.
Currently, PSI operates refineries in North Pole and Valdez, producing jet fuel as well as multiple grades of ultra-low sulfur diesel (ULSD). Through its distribution arms – Sourdough Fuel and North Pacific Fuel – PSI delivers products such as heating oil and marine diesel directly to end users, as well as operates a fleet of gas stations and convenience stores. PSI also produces specialty turbine fuels for two electric utilities – Golden Valley and Copper Valley Electric Associations – and is the main supplier of petroleum products to the Defense Logistics Agency/Department of Defense within the state.
“This is an excellent opportunity for Petro Star, and gives customers in this area of the state another choice when it comes to purchasing quality fuel and receiving superior service,” said Rex A. Rock Sr., ASRC president and CEO. “I congratulate PSI for the successful negotiations and look forward to seeing it expand into the Southcentral market.”
“Petro Star has been looking for ways to expand into the largest fuel market in the state for quite some time,” added Doug Chapados, Petro Star Inc. president and CEO. “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 deal was made possible after Tesoro was required by the SOA Attorney General’s office to divest certain of its assets in return for authorization to acquire the Flint Hills Resources POA terminal last year. After a competitive bid process, PSI was selected to purchase the Terminal 1 assets as the qualified third-party. Tesoro will continue to operate Terminal 1 for a limited transition period while PSI secures the necessary permits from state and federal agencies.
Terminal 1 includes 200,000 barrels of storage, associated piping including access to the Port of Anchorage Valve Yard, a truck loading rack and other facilities.