NGL Energy Partners LP (NGL EP) and DCP Midstream LP (DCP) have announced that they have executed a purchase and sale agreement under which DCP will convey to NGL EP its wholesale propane business, generally consisting of seven NGLs terminals in the eastern US.
Under the terms of the agreement, NGL EP 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.
“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 programme.”
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.
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/31012019/dcp-to-sell-ngls-terminals-to-ngl-energy-partners/