BRENTWOOD, Tenn., Dec. 29, 2017 — Delek Logistics Partners, LP (NYSE:DKL) announced today that Paline Pipeline Company, LLC (“Paline”) is seeking minimum volume commitments for crude oil transportation service from the origin points of Hanks Station, Kilgore, Texas and Longview, Texas to the destination point of Nederland, Texas, in exchange for volume incentive rates at a discount to the uncommitted rate for the same hauls. Paline also expects to develop new tank staging facilities to serve these origin points that should enter service in the first quarter of 2019, and shippers making minimum volume commitments would also be entitled to discount rates for tankage service at these facilities upon their completion and during the term of their volume commitments. Shippers making minimum volume commitments would execute a transportation services agreement with Paline. Service at the discounted rates for transportation would commence in the first quarter of 2018, with minimum volume commitments terminating either two or three years from the in-service date of the tank staging facilities, as may be selected by the customer.
Paline is also considering a future pipeline capacity expansion for service on these routes. Shippers that execute a transportation services agreement for a minimum volume commitment at this time would have the opportunity to reduce that commitment by a to-be-determined amount if they execute transportation services agreements in any open season to be held with respect to any such future pipeline capacity expansion project. Prospective shippers wishing to learn more regarding the terms for volume commitments and volume incentive rates should contact Odely Sakazi, Vice President of Business Strategy, at 615-939-9321 or [email protected] The deadline for executing a transportation services agreement reflecting the volume incentive rates is February 28th, 2018.About Delek Logistics Partners, LP
Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (NYSE:DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains “forward-looking” statements. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, and include, but are not limited to, statements regarding future service on the Paline pipeline; pipeline volumes, tariffs, discounts, uncommitted and incentive rates, timing, origin points, commitments, terms and agreements relating thereto; pipeline capacity, tank staging facilities and tankage services including timing, commitments and rates thereof; and future safe and reliable operations. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Neither Delek US, Delek Logistics Partners, LP nor any of their affiliates undertakes any obligation to update or revise any such forward-looking statements, except as required by applicable law or regulation.U.S. Investor / Media Relations Contact:
Vice President of Investor Relations
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