US bulk liquid storage company BWC Terminals has bought NuStar Energy’s Texas City terminals in Texas, US, for US$106 million (€91 million).
Terminal 1 has 70 tanks ranging in size from 7,000-200,000 bbl with a total capacity of 2,681,000 bbl, storing clean products, black oils, blendstocks, vacuum gas oil (VGO), and chemicals, as well as rail and truck loading and unloading facilities and three ship/barge docks. Terminal 2 has ten tanks ranging in size from 9,500-25,000 bbl and a total capacity of 131,000 bbl, storing light petroleum products. It has one barge dock with vehicle access.
BWC says that the acquisition will strengthen its position along the US Gulf Coast and support its business objectives. CEO Mike Suder says that the facility is a ‘natural fit’.
‘Like NuStar Texas City, we store a diverse array of liquids – including hydrocarbons, chemicals, and agricultural products – and we believe the strength of our combined business will help further develop Texas City’s operational capabilities,’ he adds.
NuStar president and CEO Brad Barron says that the decision to sell was difficult, but the sale will help the company to improve its debt metrics and fund more of its capital programme.
He adds: ‘While the Texas City terminals are great assets with outstanding operations and employees, the location and unique configuration of these terminals are no longer synergistic with NuStar’s strategies for our other Gulf Coast assets. For this reason, we determined that the best path forward for the continued success of these facilities and NuStar is to allow them to be acquired by an entity that can take advantage of the terminals’ niche petrochemical and petroleum capabilities. We are pleased that BWC Terminals has just such a business model.’
The transaction is expected to close by the end of 2020.