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Trafigura, Haddington Ventures acquire Sawtooth Caverns

July 21, 2021 By     0 Comments

Trafigura Trading LLC, a wholly owned, indirect U.S. subsidiary of Trafigura Group Pte Ltd, an independent commodity trading company, together with Haddington Ventures LLC acquired NGL Energy Partners LP’s 71.5 percent interest and associated assets in Sawtooth Caverns LLC for about $70 million. Trafigura and Haddington Ventures now own Sawtooth as a 50:50 joint venture company.

Sawtooth, located near Delta, Utah, is the largest natural gas liquids (NGLs) storage facility in the western United States, with about 7 million barrels of NGLs and refined products storage capacity in its deep-well salt caverns. The facility is located at a crossroads of infrastructure that includes access to the Union Pacific rail system and interstate highways, giving direct access to key markets in the western United States, Canada and Mexico.

“As the western United States does not have comprehensive pipeline infrastructure, Sawtooth Caverns’ strategic location and significant storage capacity are key differentiators that will enable Trafigura to expand its service offering and provide value to our customers in a very dynamic region of North America, where we have a growing presence,” says Robert Kreider, director for Trafigura Trading. “We’re looking forward to supporting the existing management to continue building on a successful business.”

Dan Myers, CEO of Sawtooth Caverns, adds: “Trafigura has the expertise and market presence, alongside Haddington Ventures’ significant expertise and experience in the development of salt caverns, to help us realize our ambition to become the western energy hub of the United States.”

Founded in 1998, Haddington Ventures oversees a portfolio of conventional and renewable energy businesses that are bringing new infrastructure to the U.S. energy sector.

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About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at brichesson@northcoastmedia.net or 216-706-3748.

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