Global Partners gains majority interest in Basin Transload LLC
Feb 13, 2013 10:44 AM
Global Partners LP announced the completion of its previously announced acquisition of a 60% membership interest in Basin Transload LLC, which operates two crude oil transloading facilities in Columbus and Beulah ND with a combined rail loading capacity of 160,000 barrels per day. The purchase price, subject to post-closing adjustments, was approximately $85 million, which Global financed through an increase in its credit facility.
“Basin Transload provides us with strategically located assets in the Bakken region,” says Eric Slifka, Global’s president and chief executive officer. “The facilities are in close proximity to key suppliers and producers in this high-growth area. Together, these facilities help form a network of unique origin and destination locations through which our customers can efficiently supply cost-competitive crude oil to destinations on the East and West coasts.
“The transaction complements our recently announced agreement to purchase a West Coast crude oil transload and ethanol facility near Portland OR. That facility is linked via the BNSF Railway to the Beulah facility, where Basin Transload is constructing a 140,000 barrel tank and truck offloading rack to support crude oil production in the Williston Basin. Our Albany NY terminal is connected via single line haul on Canadian Pacific to Basin Transload’s Columbus location, where we own and operate a 100,000 barrel storage tank and truck offloading rack. By directly addressing the lack of infrastructure in high-growth energy regions of the country, we are creating new opportunities to increase volume and margins by providing a wide range of value-added services, including leases, to producers and refiners.”
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