December 13, 2020 [Natural Gas Intel] – BWC Terminals is expanding its presence on the Gulf Coast, completing the $106 million acquisition of liquid storage assets in Texas City, TX.
Houston-based BWC, a provider of bulk liquid storage and logistics services with terminals across 13 states in North America, purchased the Texas City terminal from NuStar Energy LP. The acquisition complements BWC’s network of “high-quality terminal storage of hydrocarbons, chemicals, renewables and agricultural products across North America,” according to BWC CEO Mike Suder.
“The addition provides increased growth opportunities in the Gulf Coast Region to optimize and further develop our operational capabilities in support of the supply chain needs of our customers,” Suder said.
The Texas City terminal’s storage capacity includes 68 carbon steel tanks ranging in size from 8,000-200,000 bbl, with a total terminal capacity of 2.8 million bbl. There are three berths at the terminal that can accommodate a maximum draft of 41 feet, a maximum length overall of 900 feet and a maximum beam of 130 feet. The terminal’s rail capabilities include 12 railcar storage spots, 18 railcar working spots and 68 heating railcar unloading spots.
NuStar CEO Brad Barron said while it was a “difficult decision” to divest the terminal assets, it allows the company to deploy the proceeds to further improve its debt metrics and self-fund a larger proportion of its capital program. Earlier this year, NuStar received a $400 million capital commitment from Camelback Midstream Holdings and a separate $750 million to help improve the bottom line.
Barron also said the Texas City terminals’ location and unique configuration “were no longer synergistic with NuStar’s strategies for our other Gulf Coast assets.” NuStar has infrastructure in the Permian Basin and Eagle Ford Shale, among others.
“For this reason, we determined that the best path forward for the continued success of these facilities and NuStar was to allow them to be acquired by an entity that can take advantage of the terminals’ niche petrochemical and petroleum capabilities,” he said.
BWC is the rebranded combination of U.S.-based liquid storage terminal providers BW Terminals Inc. and Contanda LLC, which merged this summer.
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