Blackline Midstream acquires Sea-3 Inc., propane terminal

November 23, 2017 By Brian Richesson

Blackline Midstream, a joint venture formed by Blackline Partners LLC and TPG Sixth Street Partners, acquired Sea-3 Inc., owner of New England’s propane storage and distribution terminal located in Newington, New Hampshire, from Trammo Inc.

Blackline aims to acquire and develop oil and gas midstream infrastructure assets.

Sea-3’s assets consist of 530,000 barrels of propane storage, a five-lane 24/7 truck-loading rack, an ocean-access marine vessel receiving/loading dock and a six-spot rail-receiving rack. In addition, Sea-3 has a fully approved upgrade project, which will significantly increase the rail-unloading capacity of the terminal, giving it access to both domestic and international markets, Blackline Midstream adds.

“With the rail expansion project, we will be able to remain competitive under any market supply scenario,” says David Herr, vice president of marketing at Blackline, who will manage product commercial operations for Blackline Midstream. “All existing commercial agreements will be carried forward, and customers of the terminal will experience a seamless transition following the acquisition.”

Trammo’s Houston team previously dedicated to the Sea-3 business have joined Blackline Midstream and will operate from the Blackline Midstream office in Houston, the company says. In addition, all of Sea-3’s New Hampshire-based terminal operating personnel will remain in place.

“Blackline’s deeply experienced operations management team combined with TSSP’s financial strength and expertise position us to integrate Sea-3 into a strong, well-equipped midstream growth platform,” says Mike Day, CEO of Blackline Partners. “We will immediately commence the rail expansion project at Newington in order to position Sea-3 as the most flexible and reliable propane supply terminal in the Northeast United States. On a personal note, as a native of New England, it is a privilege to be able to invest in the people and infrastructure of New England that serve the energy needs of the region.”