August 13, 2018 [Business Wire] – NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” or the “Partnership”) today announced that it has signed a definitive agreement to sell TransMontaigne Product Services, LLC (“TPSL”) and associated assets to a strategic buyer with substantial assets for estimated proceeds of approximately $300 million, including equity consideration, inventory, and net working capital, based on June 30, 2019 values and subject to actual values at closing.

 
The Partnership also expects to significantly reduce letter of credit commitments following the sale. TPSL makes up a portion of NGL’s Refined Products reporting segment.
 
The divested assets include:

• TPSL Terminaling Services Agreement with TransMontaigne Partners LP, including the exclusive rights to utilize 18 terminals;
• Line space along Colonial and Plantation Pipelines;
• 2 wholly-owned refined products terminals in Georgia and multiple third-party throughput agreements; and
• All associated customer contracts, inventory and other working capital associated with the assets.
• Proceeds from this transaction will be used to reduce outstanding indebtedness under the Partnership’s revolving credit facility.

 
“NGL continues to focus on its core areas where we have competitive strength. These focus areas generate stable and predictable cash flows as we grow our mix of long-term contracted revenues. The sale of TPSL is part of this strategy and a result of the strategic review of the Refined Products business announced earlier this year,” stated Mike Krimbill, NGL’s CEO.
 
“Along with the significant reduction in inventory and working capital associated with this business, this transaction reduces borrowings on our working capital revolver and enhances the Partnership’s liquidity and overall leverage profile. Managing our leverage and cost of capital are fundamental to our business strategy as we continue our strategic growth plan while maintaining focus on a strong balance sheet.”

The transaction is subject to certain regulatory and other customary closing conditions and is expected to close during the second fiscal quarter.

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August 13, 2018 [Tank News International] – The European Commission has found Croatian plans to support the construction and operation of an LNG terminal at Krk island to be in line with EU State aid rules. The project will contribute to the security and diversification of energy supplies without unduly distorting competition.

The measures approved will support the construction and operation of a floating LNG terminal, consisting of a floating storage and regasification unit (FSRU) and the connections to the national gas transmission network. The LNG terminal is designed to transport up to 2.6 billion cubic meters per year (bcm/y) of natural gas into Croatia national transmission network as from 2021.

The total investment costs to build the terminal amount to €233.6 million. This will be financed through:

a direct equity contribution of €32.2 million from the LNG terminal company shareholders;
a contribution of €101.4 million from the Connecting Europe Facility, which is centrally managed by the European Commission, through the Innovation and Networks Executive Agency (INEA);
a direct financial contribution of €100 million from the Croatian State budget.
In addition, Croatia will grant a tariff compensation called ‘security of supply fee’, which is financed by levies charged by the gas transmission system operator to gas users along with gas transmission tariffs, in case revenues from the terminal fees are not sufficient to cover operating expenses.

Croatia notified the Commission of the €100 million direct financial contribution, as well as of the security of supply fee. Both support measures involve State aid under EU rules.

The Commission concluded that the measures are in line with EU State aid rules, as they contribute to further key strategic objectives of the EU, including diversifying gas supply sources and increasing the EU’s security of gas supply, notably in the Central and South-Eastern regions, without unduly distorting competition.

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