News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

INTER CLOSES NUSTAR DEAL

Inter Terminals has completed the acquisition of NuStar Energy’s European bulk liquids storage business, as announced at the end of October, for a cash consideration of $270m. The transaction increases Inter Terminals’ storage capacity by 33 per cent to some 37m bbl (5.9m m3). The acquisition was funded through a common share issuance and cash available through Inter Pipeline’s revolving credit facility.

Inter Pipeline, Canada-based parent of Inter Terminals, says it is to spend a further C$20m in 2019 on its European terminal operations, with enhancements to its facilities in the UK, Sweden and Germany and the Amsterdam site acquired from NuStar, (above) to meet increased demand for storage. www.interpipeline.com

ZENITH TAKES OWNERSHIP

Zenith Energy has acquired the Portland Terminal Facility in Oregon from CorEnergy Infrastucture Trust. Zenith had been leasing the site, which CorEnergy bought in 2014, and has held an option to buy it since February 2017. It has 84 storage tanks with a total capacity of some 1.5m bbl and acts as a rail/marine transloading facility.

“Our tenant’s operating team developed the commercial potential for the Portland Terminal, while CorEnergy fulfilled our role of funding the initial acquisition and upgrades,” says CorEnergy CEO/president Dave Schulte. “The relationship has proven beneficial to both parties. We are pleased with the transaction, to have had Zenith as a tenant, and to have played a role in its continuing terminal acquisition success.”

CorEnergy acquired the Portland facility for $42m and has since invested $10m to improve the asset; Zenith is said to be paying $61m for the Portland terminal, as well as CorEnergy’s remaining interest in the Joliet terminal in Illinois, in which Zenith is the major shareholder. “With the funds we are receiving, CorEnergy expects to invest in another asset in 2019,” says Dave Schulte. www.corenergy.reit www.zenithterminals.com

TALLGRASS GETS LAND FOR TERMINAL

Tallgrass Energy has secured a plot of land on the Mississippi River in Plaquemines, Louisiana, where it plans to build 20m bbl of tank storage for crude oil and refined products and export facilities capable of loading VLCC and Suezmax tankers.

As part of the $30m land deal, Tallgrassowned Plaquemines Liquid Terminal (PLT) has agreed to work collaboratively with the Plaquemines Port & Harbor Terminal District and to provide it with a 50-acre tract that will serve as a conservation easement adjacent to the historic community of Ironton.

“We are committed to being a good neighbour and we demonstrated that with this land transaction that represents a win for all parties,” says COO Bill Moler. “The community of Ironton benefits from a conservation easement that will provide a buffer between Ironton and any future development; and PLT procures the land needed for the proposed terminal and docking facility.” www.tallgrassenergylp.com

TANZANIA LOOKS FOR CAPACITY

The Tanzania Port Authority is planning a new jetty at the Raskazone oil terminal in Tanga, local press report. The new jetty will be able to handle tankers of up to 120,000 dwt, a significant step up from the current limit of 45,000 dwt.

Tanga currently handles imports of refined products and LPG through two buoy moorings. Addition of the new jetty will provide capacity to handle imports for Uganda, which would be moved to consumers by rail. Tanga Port is currently engaged in a consultancy project following a successful geotechnical survey. www.ports.go.tz

MORE TANKAGE IN PNG

Mobil Oil has commissioned a new diesel storage tank at the Idubada terminal in Port Moresby, Papua New Guinea, local press reports say. The new 5,600-m3 tank will “significantly improve” fuel supply reliability in the country, according to Mobil. Diesel will be sourced from the ExxonMobil refinery in Singapore. The Port Moresby facility now has five storage tanks. www.pngpartnership.exxonmobil.com

AMID SHELLS OUT

American Midstream Partners sold its refined products terminalling business to Sunoco LP for some $125m in cash, which will be put to reducing debt. The assets involved are located in Caddo Mills, Texas and North Little Rock, Arkansas and have a combined storage capacity of some 1.3m bbl.

American Midstream says the sale represents “continued progress towards [its] capital allocation strategy designed to reduce leverage and strengthen the Partnership”. Sunoco says the deal “builds on Sunoco’s strategy of adding fee-based refined product terminals into the overall portfolio”. Sunoco is part of Energy Transfer LP.

Partly as a result of the sale, ArcLight Energy Partners has revised the terms of its proposed acquisition of all of the common units of American Midstream Partners is does not already own. It is now offering $4.50 per common unit, rather than the $6.10 offered in September 2018. The proposed acquisition remains contingent on a number of approvals and agreements. www.americanmidstream.com

TM OKS SALE

TransMontaigne Partners has approved the planned takeover by an affiliate of ArcLight Energy Partners, originally announced in June 2018, after negotiations resulted in an increase in the offer price from $38 per common unit to $41, valuing the company at $536m.

The transaction will be effected through a merger between TransMontaigne and an indirect subsidiary of ArcLight, TLP Finance Holdings. The merger is expected to close in the first quarter of 2019, subject to the usual conditions. www.transmontaignepartners.com

TRAINS FOR TERQUIMSA

A new rail siding has been completed at Terquimsa’s terminal in Barcelona (above). The €1m facility can handle trains of up to 14 wagons along its energy wharf, in both Iberian and European track gauge.

“With this new infrastructure, Terquimsa allows Barcelona to connect with the Europe-wide railway, thus expanding our changes of being competitive as a port when it comes to putting products in Europe,” says Eduardo Sañudo, managing director of Vopak Terquimsa. www.vopakterquimsa.com

BUCKEYE TAKES THE CASH

Buckeye Partners has completed the sale of a package of US pipeline and terminal assets, which includes a number of airport fuelling facilities and two refined petroleum products terminals in California, to InstarAGF Asset Management for $450m cash. Buckeye Development & Logistics will continue to operate the assets for the buyer under a long-term agreement.

Buckeye further reports that the sale of its 50 per cent equity interest in VTTI is on track and is expected to close early in 2019. Both sales are designed to reduce leverage and allow Buckeye to reallocate capital to take advantage of higher returns elsewhere. www.buckeye.com

MARTIN GOES TRUCKING

Martin Midstream Partners has completed the acquisition of Martin Transport from Martin Resource Management Corp, first announced in October 2018. Martin Transport operates a fleet of tank trucks that transport petroleum products, LPG, chemicals, sulphur and other products. It also has 23 terminals across the Gulf Coast and Midwest US and is “integral to Martin Midstream’s routine movements of sulphur and NGLs,” the company says.

Martin Midstream said in October that it was paying $135m plus up to $10m earn-out for Martin Transport, representing an EBITDA multiple of around 5.7 on Martin Transport’s estimated 2019 net income of $9.3m and EBITDA of $23.6m. www.martinmidstream.com