Pin Oak Holdings has sold Pin Oak Terminals to MPLX for $450 million.
As part of the transaction, Pin Oak Holdings will retain an economic interest in the facility. The terminal was the first asset developed, financed, constructed and operated by Pin Oak Holdings.
The greenfield site was acquired in 2012 with the objective of developing a full-service transportation hub on the Mississippi River. The facility has four million barrels of fully-leased storage capacity and an operational deep-water ship dock. It can expand its capacity to 10 million barrels and is permitted for construction of a second deep-water ship dock.
Pin Oak Holdings is a partnership between Dauphine Midstream and Mercuria Energy Group.
C. Mike Reed, CEO of Pin Oak Holdings, says: ‘Our team is very proud to have built a premier storage and logistics facility in Louisiana, and this transaction further validates our development strategy and ability to execute.’
‘Brian Falik, Mercuria’s chief investment officer, adds: ‘Mercuria is pleased to have been a partner in constructing and operating a world-class terminal in Louisiana. We look forward to Pin Oak actively developing additional terminals and forging strong ties with key customers and local communities.’
Pin Oak Holdings recently started construction work on its liquid bulk export terminal in Corpus Christi, Texas. Since acquiring Pin Oak Corpus Christi in 2017, Pin Oak has successfully executed an interconnection agreement with a crude oil pipeline and secured a multi-million-barrel long-term crude oil storage contract, with the capacity to construct additional third-party storage.
Pin Oak Corpus Christi is expected to be operational during the fourth quarter of 2019.