Energy Transfer’s finalized acquisition of SemGroup Corp. means 108 workers at the company’s offices in Tulsa and Oklahoma City are losing their jobs.
The Dallas-based company sent a notice to the Oklahoma Office of Workforce Development of the layoff of 108 workers. The layoffs were the result of the purchase of SemGroup Corp. which was finalized in December 2019.
The notice indicated the layoffs started Jan. 6. Energy Transfer officials declined further comment on the matter.
SemGroup was operating in western Canada, the Mid-Continent and Gulf Coast at the time of the sale to Energy Transfer. The company transported energy across North America through a network of pipelines, processing plants, refinery-connected storage facilities and deep-water marine terminals with import and export capabilities.
The combined operations of the two companies are expected to generate annual run-rate efficiencies of more than $170 million, consisting of commercial and operational synergies of $80 million, financial savings of $50 million and cost savings of $40 million.
Energy Transfer’s acquisition of SemGroup’s Houston Fuel Oil Terminal (HFOTCO) strengthens its crude oil transportation, terminalling and export capabilities, and provides Energy Transfer a strategic position on the Houston Ship Channel. HFOTCO is a world-class crude oil terminal with more than 18 million barrels of crude oil storage capacity, five deep-water ship docks and seven barge docks.
To provide shippers further access from the Houston Ship Channel to markets along the Gulf Coast, Energy Transfer is constructing the Ted Collins pipeline, a 75-mile crude line that will connect HFOTCO to Energy Transfer’s Nederland terminal. The pipeline is expected to be in service in 2021, and will have an initial capacity of 500 thousand barrels per day.
This acquisition expands Energy Transfer’s pipeline footprint by adding crude oil and NGL gathering systems and transmission lines in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas with connections to crude oil terminals in Cushing, Oklahoma. The acquisition will also provide a significant natural gas gathering and processing presence in the Alberta Basin in western Canada.
