June 16, 2016 [OPIS] - West Coast propane wholesaler Kiva Energy has confirmed plans to purchase the Rocklin, Calif., and Reno, Nev., LPG rail terminals from an affiliate of Enterprise Products Partners LP. The deal is set to close in a few weeks, according to a June 14 news release from Kiva.
OPIS reported on June 8 that Enterprise planned to sell three of its West Coast LPG rail terminals, including its Rocklin and Reno sites, to Kiva, and its Bakersfield LPG rail terminal, to United Pacific Energy. United’s deal is expected to close before the end of the month.
Kiva’s president, Mark Harris, said the two terminals are strategically located to expand and strengthen Kiva’s supply chain in the California and Nevada markets. The Rocklin terminal is a high-volume facility with 18 30,000-gal tanks and the ability to throughput over 10 million gal/yr.
Cody Jackson, Kiva’s supply director, said the new terminals will also give Kiva more control over its rail supply, which is critical to handling seasonal demands of customers. The two terminals will complement the Riverbank terminal, a key rail supply point for Kiva.
Kiva is a propane supplier to customers in the Western U.S., as well as its own retail divisions: Kamps Propane in California and High Country Propane in Arizona.
United Pacific, the buyer of Enterprise’s Bakersfield terminal, owns a fleet of LPG trucks and rail cars, operates a terminal in Northern California and is a partner with Sheldon Gas in a San Francisco Bay Area LPG terminal.
