NGL Energy Partners has executed a purchase and sale agreement to buy DCP Midstream's wholesale propane business, comprising natural gas liquids terminals in the US.
Under the terms of the agreement, NGL will acquire 100% ownership of five propane rail terminals operated by Gas Supply Resources, a subsidiary of DCP, and 50% ownership interest in a sixth propane rail terminal. The agreement also includes an import/export terminal in Chesapeake, Virginia, with the capability to load or unload ships from Handy-sized vessels up to VLGC.
Jeff Pinter, executive vice president of liquids for NGL, says: 'NGL is excited to acquire these well-operated, high quality assets from DCP. The propane terminals complement NGL's existing liquids portfolio and create additional opportunities for new and existing customers to supply their business.
The Chesapeake asset provides strategic access to the water for imports and exports.'
Wouter van Kempen, chairman, president and CEO of DCP Midstream, adds: 'Gas Supply Resources has been a great asset for DCP, but has no interconnectivity with our otherwise integrated value chain of midstream services. This is an outstanding opportunity to streamline our assets and funds our 2019 strategic capital programme.'
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