Holly Energy Buys Interest in Cheyenne Pipeline

Holly Energy Partners acquired half interest in Cheyenne Pipeline LLC, owner of the Cheyenne Pipeline, for $42.5 million. The other half of the assets are owned by an affiliate of Plains All American Pipeline, which will continue to operate the pipeline.

The 87-mile crude oil pipeline, which runs from Fort Laramie, WY to Cheyenne, WY, has an 80,000 bpd  capacity. After the closing,  Cheyenne Pipeline LLC and a subsidiary of HollyFrontier Corporation executed a long-term extension and increase of HollyFrontier’s minimum volume commitment on the Cheyenne Pipeline.