World News
NGL To Sell TransMontaigne to ArcLight
NGL Energy Partners LP (NGL) [NYSE:NGL] Friday announced that it has entered into an agreement with an affiliate of ArcLight Capital Partners (ArcLight) to sell its wholly-owed subsidiary TransMontaigne GP LLC (TLPGP) for $350 million in cash.
"I believe this is a very positive transaction for both NGL and ArcLight. NGL will remain the long-term exclusive tenant in the TLP Southeast terminal system and we look forward to our ongoing partnership with ArcLight," said Mike Krimbill, CEO of NGL.
NGL says it expects the transaction to close by the end of January 2016, and notes that it intends to use the sale's proceeds to repay outstanding amounts on its revolving credit facility.
It is further noted that NGL will retain TransMontaigne's marketing business and TransMontaigne Product Services LLC, including its customer contracts and line space on the Colonial and Plantation pipelines.
"We are excited to acquire a leading refined products platform that is complementary to our recent activity in the refined product storage and logistics segment," said Dan Revers, ArcLight Managing Partner and co-founder.
"The acquisition of TransMontaigne GP will mark the fourth major refined product terminals acquisition in the last twelve months and is emblematic of a concerted strategy to acquire and develop infrastructure along the refined products value chain."
In December, Ship & Bunker reported that ArcLight and commodities trader Freepoint were set to buy the bankrupt Hovensa refinery complex in St. Croix, U.S. Virgin Islands in the Caribbean, intending to turn it into a "massive" oil storage hub.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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