NuStar Energy, a US-based liquids terminal and pipeline operator, has completed the previously announced divestment of its terminals in Texas City for $106m.
The assets were acquired by BWC Terminals, which seeks to provide liquid storage solutions across North America in the petrochemical, hydrocarbon and agriculture verticals.
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The acquisition will help BWC to further bolster its position along the US Gulf Coast.
NuStar president and CEO Brad Barron said: “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.
“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.”
The company plans to use the proceeds received from this transaction to improve its debt metrics and self-fund part of its capital programme.
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By GlobalDataBWC Terminals CEO Michael Suder said: “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.”
