Converge Midstream, a crude oil storage and transportation company affiliated with Riverstone Credit Partners, announced today that it has completed the acquisition of the assets of Fairway Energy Partners.
On 26 November 2018, Fairway filed a voluntary petition for relief under Chapter 11 and launched a bankruptcy court supervised 363 sales process. On 10 April 2019, Riverstone Credit emerged as the successful bidder for the Fairway assets, in an auction that saw bids from ExxonMobil Pipeline Company, Enterprise Products Operating, Magellan Crude Oil Pipeline Company, and Sullivan Brothers Investments.
This acquisition has repositioned the assets for future growth. Converge is now uniquely suited to act as a major hub to shippers and other operators looking to move multiple grades of crude oil in and out of Houston. The Company will be led by Dana Grams, CEO, Robert Flavin, CFO, and James Scandola, COO.
The Converge assets include:
- 6.5 million bbl of crude oil storage capacity (with the ability to grow to 19 million bbl) on the Pierce Junction Salt Dome located at the city-gate entrance to the Houston Ship Channel.
- Dual 24” bi-directional pipelines running between Genoa and Speed Junctions with potential connectivity to the Houston Ship Channel and other major export terminals.
- Right-of-way agreements and other assets forming the footprint of an integrated crude oil terminal poised to service the Houston area export markets.
Dana Grams, CEO of Converge Midstream, stated, “We are excited to bring the Company’s assets to their highest and best use with the financial backing of Riverstone Holdings. Riverstone Holding’s reputation and financial strength provides Converge an advantage to further develop the geographical reach of our pipeline system, allowing us to access new supply sources and exports facilities in the Houston Ship Channel market area. We have already begun to solicit the network of relationships within the Converge and Riverstone families. We intend to position Converge as an integral trading and storage hub, facilitating large scale movements of crude oil to address the increasing demand for exports from the Houston Ship Channel and beyond.”
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/20062019/converge-midstream-acquires-fairway-energy-partners-assets/