Suburban sells salt dome storage facility to EPN-NGL Storage
Feb 7, 2002 12:00 PM
Suburban Propane Partners LP, Whippany NJ, has announced the sale of certain propane related assets to EPN-NGL Storage LLC, a subsidiary of El Paso Energy Partners LP, Houston TX, according to Suburban information.
The $8.4 million transaction involves the sale of assets associated with a large, underground salt dome storage facility in Hattiesburg MS for the storage of up to 170 million gallons of liquefied petroleum gas.
As part of the agreement, Suburban entered into a long-term storage arrangement with El Paso Energy Partners, which will enable Suburban to continue to meet the needs of its retail operations.
"This transaction further strengthens our already strong balance sheet and allows us to continue with our strategy to reposition assets in markets that for us provide the best return on investment," said Mark A. Alexander, Suburban president and chief executive officer. "We are proud of our Hattiesburg facility which has operated accident-free for over 40 years; and we recognize the value enhancement potential as a result of EPN-NGL's ability to explore additional business opportunities."