Please use a modern browser. This website is not designed for versions of Internet Explorer below IE10
masthead
masthead
awards
masthead
masthead
menu
Terminal News

Inter Terminals to acquire NuStar’s European storage terminal business

Inter Terminals to acquire NuStar’s European storage terminal business
Inter Terminals is set to acquire all of NuStar Energy's European bulk liquid storage business for $270 million.

Parent company Inter Pipeline says that Inter Terminals will acquire 100% of the issued share capital of the business and that the transaction is expected to close in the fourth quarter of 2018.

NuStar Europe comprises seven coastal terminals totalling 9.1 million barrels of storage. One is located in Amsterdam with the remaining facilities located in the UK near London, Runcorn, Eastham, Grangemouth, Clydebank and Belfast.

The investment includes 321 tanks, cost-of-service and fee-based storage business primarily focused on inland distribution and blending of petroleum & petrochemical products, historically strong utilisation rates as well as stable cash flows.

The transaction will increase Inter Terminal's storage capacity by 33% to 37 million barrels and the company says there is strong integration potential with Inter Terminal's existing terminals in the UK, resulting in enhanced product storage and custom blending solutions for customers.

NuStar's European terminals operate as storage and blending hubs for the transhipment of refined products as well as the inland distribution of petroleum and petrochemical products. They are well positioned to facilitate the regional movement of products driven by the significant imbalances that exist between supply and sources and demand locations.

In the UK, the 1.9 million-barrel Grays terminal is a key regional supply point, responsible for handling approximately 17 million barrels of refined products per year and provides cost effective access to London's fuel distribution network.

The 3.8 million-barrel facility in Amsterdam, Netherlands plays a key role in the Port of Amsterdam, comprising approximately 10% of independent storage capacity. The terminal provides gasoline, gas oil and fuel oil storage, and blending services, including those required to produce IMO 2020 compliant marine fuels.

The smaller terminals in Belfast, Eastham, Grangemouth, Runcorn and Clydebank in the UK primarily support the distribution of petrochemicals, gasoline, diesel and sulphur to regional demand centres.

Christian Bayle, Inter Pipeline's president & CEO, says: 'The addition of NuStar Europe is an exciting step forward for our European bulk liquid storage business.

'The acquisition materially increases our overall storage capacity and establishes Inter Terminals as the largest independent storage operator in the UK. Furthermore, the transaction provides an attractive entry into the Port of Amsterdam. The port is the world's largest gasoline blending hub and has experienced significant storage growth over the years.'



Share: