NGL Energy Partners purchases wholesale propane business from DCP

DCP Midstream LP sold its wholesale propane business, generally consisting of seven natural gas liquids terminals in the eastern United States, to NGL Energy Partners LP.

According to the agreement, NGL acquires 100 percent ownership of five propane rail terminals operated by Gas Supply Resources – a subsidiary of DCP – and 50 percent ownership interest in a sixth propane rail terminal.

Additionally, the agreement includes an import/export terminal in Chesapeake, Virginia, with the capability to load or unload ships from handy-sized vessels up to very large gas carriers.

“NGL is excited to acquire these well-operated, high-quality assets from DCP,” says Jeff Pinter, executive vice president of liquids for NGL. “The propane terminals complement NGL’s existing liquids portfolio and create additional opportunities for new and existing customers to supply their business. The Chesapeake [Virginia] asset provides strategic access to the water for imports and exports. Gas Supply Resources has an excellent reputation in the Northeast, and we look forward to inviting their talented employees to join the NGL team.”

The transaction was approved by both companies, but remains subject to satisfaction of specified closing conditions.

“Gas Supply Resources has been a great asset for DCP, but has no interconnectivity with our otherwise integrated value chain of midstream services,” says 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 program.”