NuStar closes US$106 million terminal sale to BWC Terminals
Published by Pippa Luck,
NuStar Energy LP has announced that it has closed on the sale of its terminals in Texas City, Texas, US, to BWC Terminals for US$106 million. The companies first announced this sale on November 2, 2020.
Brad Barron, President and CEO of NuStar, said: “While it was a difficult decision, this divestiture allows us to deploy the proceeds to further improve our debt metrics and self-fund a larger proportion of our capital programme.”
“And while the Texas City terminals are great assets with outstanding operations and employees, the location and unique configuration of these terminals were no longer synergistic with NuStar’s strategies for our other Gulf Coast assets,” Barron added. “For this reason, we determined that the best path forward for the continued success of these facilities and NuStar was to allow them to be acquired by an entity that can take advantage of the terminals’ niche petrochemical and petroleum capabilities. We are pleased that BWC Terminals has just such a business model.
“And the Texas City employees are now a part of a company with a business plan that is better aligned to take advantage of the terminals’ strengths. This should create more growth opportunities for the operations and provide employees with more resources to ensure their continued growth and success as well.”
“We are excited to finalise the acquisition of the Texas City NuStar Terminal,” said Michael Suder, CEO of BWC Terminals. “This terminal complements our network of high-quality terminal storage of hydrocarbons, chemicals, renewables, and agricultural products across North America. The addition provides increased growth opportunities in the Gulf Coast region to optimise and further develop our operational capabilities in support of the supply chain needs of our customers.”
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/08122020/nustar-closes-us106-million-terminal-sale-to-bwc-terminals/
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