US midstream company Blueknight Energy Partners has closed the sale of its crude oil terminalling business to Canadian firm Enbridge, completing its transition into a pure-play terminalling company focused on infrastructure and transportation end markets.
Enbridge paid US$132 million (€110 million) for the business, subject to customary post-closing adjustments and excluding crude oil linefill and inventory. Blueknight announced in December 2020 that it was selling its terminal, pipeline and trucking businesses as part of a strategy to exit its crude oil businesses. The sales of its pipeline and trucking businesses closed in February 2021. The total cash consideration for the crude oil terminalling, pipeline, and trucking transactions was approximately $164 million.
‘Exiting our crude oil businesses has been a top priority for Blueknight since early 2020,’ says Blueknight CEO Andrew Woodward. ‘Now with a more focussed strategy and business model, coupled with an improved leverage profile and available liquidity, we believe we are well-positioned to identify and capture growth opportunities and benefit from long-term positive investment trends in US infrastructure.’