DCP Sells Terminals to NGL

Maritime Activity Reports, Inc.

February 4, 2019

Pic: DCP Midstream

Pic: DCP Midstream

Delaware-based NGL Energy Partners and Colorado's DCP Midstream have executed a purchase and sale agreement under which DCP will convey to NGL its wholesale propane business, generally consisting of seven natural gas liquids terminals in the Eastern United States.

Under the terms of the agreement, NGL will acquire 100% ownership of five propane rail terminals operated by Gas Supply Resources, a subsidiary of DCP, and 50% ownership interest in a sixth propane rail terminal.

The agreement also includes an import/export terminal located in Chesapeake, Virginia, with the capability to load or unload ships from Handy-sized vessels up to Very Large Gas Carriers.
 
“NGL is excited to acquire these well-operated, high-quality assets from DCP. The propane terminals complement NGL’s existing liquids portfolio and create additional opportunities for new and existing customers to supply their business. The Chesapeake asset provides strategic access to the water for imports and exports. Gas Supply Resources has an excellent reputation in the Northeast, and we look forward to inviting their talented employees to join the NGL team,” said Jeff Pinter, Executive Vice President of Liquids for NGL.

“Gas Supply Resources has been a great asset for DCP, but has no interconnectivity with our otherwise integrated value chain of midstream services,” said Wouter van Kempen, chairman, president, and CEO of DCP Midstream. “This is an outstanding opportunity to streamline our assets and fund our 2019 strategic capital program.”

The transaction has been approved by appropriate governing bodies of both companies, but remains subject to satisfaction of specified closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Maritime Reporter Magazine Cover Feb 2019 - Ferry Builders

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News