AmeriGas will sell facility to Plains LPG
Mar 1, 2007 12:00 PM
AmeriGas Propane Inc, general partner of AmeriGas Partners LP, has signed a definitive agreement to sell its Bumstead liquefied petroleum gas (LPG) storage terminal near Phoenix AZ to Plains LPG Services LP for approximately $52 million. The partnership expects to realize a gain on the sale of about $48 million. The 3.5-million-barrel underground storage facility provides LPG storage for the western United States. As part of the transaction, AmeriGas will retain the right to store propane for its retail operations under a long-term storage agreement.
David L Lugar, vice-president of supply and logistics for AmeriGas, said, “While Bumstead will remain an important storage location for AmeriGas retail operations in the western US, divestiture of the facility will enable us to focus our resources on our core businesses.”
