U.S. Energy to expand into northeast Wisconsin propane market

U.S. Energy, a provider of refined products, alternative fuels and environmental credits, agreed to purchase NGL Supply Terminal Co.’s propane storage and terminal assets, which are located adjacent to U.S. Energy’s existing terminal in Wisconsin at Green Bay Quincy North.

U.S. Energy says the acquisition will mark its further entry into the wholesale propane market.

Through the agreement, U.S. Energy will be able to store, distribute and market propane across northeast Wisconsin, where it currently owns and operates seven fuel terminals, the company says. Its focus will be on serving retailers who handle last-mile propane delivery to end users.

U.S. Energy is expected to close the transaction and take over the assets no later than March 31, ensuring a seamless transfer of ownership and uninterrupted service for customers, the company adds.

“Many of our current customers have an existing propane need. Owning these assets better positions us to meet all their fuel needs, streamline purchases and become their terminal of choice,” says Mike Koel, president of U.S. Energy. “We’ve built our strategy around finding a better way to serve our customers, and through continued investments in new product offerings like this, we’re able to expand upon our core capabilities.”

U.S. Energy says the acquisition will complement its existing fuel and multimodal logistics offering across its 37 owned-and-operated terminals nationwide. At the Green Bay facility, its connected rail line provides additional propane storage capacity, as well as an alternative distribution channel to truck transport.

While initial growth efforts are centered around Green Bay, the acquisition, U.S. Energy says, will align with its long-term strategy to grow within the wholesale propane market.

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