Prostar Capital Acquires Oil Storage Terminal Facility in Caribbean for $250m
08.05.2019 - NEWS

August 5, 2019 [IREI] – Prostar Capital has completed its acquisition an oil storage terminal facility located on the island of St. Eustatius, a Dutch island in the Caribbean, from NuStar Energy for $250 million.

 
The terminal is a complementary acquisition for Prostar’s existing storage terminal platform, Global Terminal Investments, which also owns Fujairah Oil Terminal FZC and GTI Fujairah FZC, both of which are located in the Port of Fujairah, UAE. The St. Eustatius terminal has been rebranded as GTI Statia under Prostar’s ownership.
 
The acquisition of the GTI Statia terminal represents the third storage terminal investment for Prostar through our GTI platform and increases the underlying capacity of that business to more than 3.4 million cubic meters — 22 million barrels — of storage,” said Dave Noakes, senior managing director of Prostar. “We will continue to build and diversify the platform through future acquisitions of terminals located in key global energy storage and trading hubs.
 
The GTI Statia terminal is strategically located along major shipping lanes serving U.S. crude import and export markets, as well as the regional markets for fuel oil and refined petroleum products in the Caribbean and Latin America. The terminal consists of 60 commercial tanks with a total storage capacity of 2.3 million cubic meters (14 million barrels) and extensive marine infrastructure that can accommodate fully-laden VLCC and ULCC vessels.
 
The acquisition is Prostar’s second transaction in the region, following its 2017 investment in Eureka Midstream, a gas gathering business located in the heart of the Marcellus and Utica shale basins.
 
We are pleased that this sale allows us to redeploy the sales proceeds to continue to lower our leverage and to fund growth projects in our core North American business, allowing us to focus our resources on building our core asset base, as well as continuing to strengthen our financial metrics to generate stable, consistent growth for our unitholders,” said Brad Barron, president and CEO of NuStar Energy.
 
And while it was a very difficult decision to divest the terminal, given that it is such a high-quality asset with outstanding employees, we are pleased to hand over the reins to a company with a business model that is better aligned to take advantage of the terminal’s location and operational strengths, which ensures a bright future for the facility and its employees.

 
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