One of the largest oil terminals in the US has been acquired by SemGroup Corporation from investment funds managed by Alinda Capital Partners.
The 16.8 million barrel terminal, on 330 acres of land, is located on the US Gulf Coast with pipeline connectivity to the local refining complex, deep water marine access and inbound pipeline, rail and truck receipt capabilities from all major producing basins.
The business is fully supported by take-or-pay contracts with primarily investment-grade counterparties that have been customers for an average of 15 years. The facility is currently undergoing a series of growth projects, including a new ship dock, a new pipeline and connections as well as an additional 1.45 million barrels of crude oil storage. This is due to be completed by mid-2018.
Carlin Conner, SemGroup president and CEO, says: ‘This is a transformational acquisition that adds tremendous stability to our business and provides a dynamic platform for growth.
‘With the additional of [the terminal], SemGroup will be uniquely positioned to capture the future trends in exporting crude oil and refined products resulting from the near and long-term anticipated growth in US shale production.’
The acquisition is expected to close in the third quarter of 2017.