U.S. Energy recently agreed to purchase NGL Supply Terminal Company’s propane-storage and terminal assets, which are located adjacent to U.S. Energy’s existing terminal in Wisconsin at Green Bay Quincy North.
The acquisition marks U.S. Energy’s further entry into the wholesale propane market, the company reported.
Through this 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. Its focus will be on serving distributors 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.
“Many of our current customers have an existing propane need,” Mike Koel, U.S. Energy president, said in a news release. “Owning these assets better positions us to meet all their fuel needs, streamline purchases, and become their terminal of choice. 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.”
The acquisition will complement U.S. Energy’s 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.