Gibson Energy has agreed to acquire 100% of the membership interests of South Texas Gateway Terminal (STGT) in a deal worth $1.1bn (C$1.47bn) in cash.
The deal is expected to boost Gibson’s liquids-focused infrastructure business.
Under the deal, Gibson will acquire the STGT, which has direct pipeline connections to low-cost, long reserve-life resource supply, and very large crude carrier (VLCC) capabilities.
Located in Ingleside, Texas, at the mouth of the Corpus Christi ship channel, the crude oil export terminal has storage facilities with total terminal capacity of 8.6 million barrels of crude oil (mbo) across 20 tanks.
Connected to the Permian and Eagle Ford basins through multiple pipelines, the terminal features two deep-water docks to allow simultaneous loading of two VLCCs and a permitted throughput capacity of 1mbo.
Gibson Energy president and CEO Steve Spaulding said: “This transaction amplifies our high-quality infrastructure revenues and bolsters the continued growth of our distributable cash flow per share.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
“To add 1mbo of export capacity and nearly 9mbo of terminals storage in a highly strategic location furthers our momentum in growing Gibson’s infrastructure footprint and provides a platform for future growth with existing and new customers.”
Gibson Energy said in a statement: “As US crude oil exports grow, driven by production growth from the low-cost, resource-rich Permian basin, Gibson anticipates the potential for future expansions at the terminal.”
Subject to satisfaction of customary closing conditions, the transaction is scheduled to close in the third quarter of 2023.