NGL Energy Partners, SemStream team to build midstream business

October 6, 2011 By    

NGL Energy Partners LP agreed to acquire SemStream L.P.’s natural gas liquids business and assets for common units and cash, while SemStream will acquire an interest in the general partner of NGL. SemStream will have the right to appoint two members to the board of directors of the general partner. The transaction is expected to close in the fourth quarter.

The assets include 12 natural gas liquids terminals, located in Arizona, Arkansas, Indiana, Minnesota, Missouri, Montana, Washington and Wisconsin, with more than 12 million gallons of aboveground propane storage, about 3.7 million barrels of underground leased storage for natural gas liquids and a rail fleet of about 350 leased and 12 owned cars.

“This transaction will increase the number of terminals owned by the partnership from three to 15, significantly expanding our midstream segment from the mid-continent to the West Coast, including Washington and Arizona,” says Stephen Tuttle, president of the Midstream Division.

NGL Energy Partners said it welcomes SemStream employees to the company and believes the combined teams will provide one of the strongest platforms for delivering NGLs in today’s marketplace.

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About the Author:

Kevin Yanik was a senior editor at LP Gas Magazine.

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