Figures were not released but Tulsa’s NGL Energy Partners LP has acquired a subsidiary of DCP Midstream, LP, a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado.
The two announced they had 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 U.S.
Under the purchase, 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.