Prostar Capital has completed the acquisition of NuStar's oil storage terminal on the island of St. Eustatius in the Caribbean for $250 million.
The facility is a complementary acquisition for Prostar's existing storage terminal portfolio, Global Terminal Investments, which also owns Fujairah Oil Terminal and GTI Fujairah, both in the UAE.
The St. Eustatius terminal has been rebranded as GTI Statia. It is located along major shipping lanes serving US crude import and export markets, as well as the regional markets for fuel oil and refined petroleum products in the Caribbean and Latin America. It comprises 2.3 million m3 of capacity spread across 60 commercia tanks along with extensive marine infrastructure that can accommodate fully-laden VLCC and ULCC vessels.
Steve Bickerton, senior managing director of Prostar, says: 'This transaction is consistent with Prostar's strategy of identifying assets that are strategically positioned to serve their customers, and where opportunities exist to de-risk the business's cash flows and grow shareholder value.
'Prostar actively looks to augment its portfolio companies through expansion capital, and we see several paths to do that with GTI Statia.
Dave Noakes, senior managing director of Prostar, adds: 'The acquisition of the GTI Statia terminal represents the third storage terminal investment for Prostar through our GTI platform and increases the underlying capacity of that business to more than 3.4 million m3 of storage. We will continue to build and diversify the platform through future acquisitions of terminals located in key global energy storage and trading hubs.'
'We are pleased that this sale allows us to re-deploy the sales proceeds to continue to lower our leverage and to fund growth projects in our core North American business, allowing us to focus our resources on building out core asset base, as well as continuing to strengthen our financial metrics to generate stable, consistent growth for our unitholders,' says Brad Barron, president and CEO of NuStar Energy.
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