April 18, 2011 [Business Wire] - TransMontaigne Partners L.P. announced that it has entered into a joint venture with P.M.I. Services North America Inc., an indirect subsidiary of Petroleos Mexicanos (Pemex), the Mexican state-owned petroleum company, at its Brownsville, Texas terminal.
TLP will contribute approximately 1.5 million barrels of light petroleum product storage capacity, as well as related ancillary facilities, to the joint venture in exchange for a cash payment of approximately $25 million and a 50% ownership interest. PMI will acquire a 50% ownership interest in the joint venture for a cash payment of approximately $25 million. The joint venture assets will be operated by TLP. The impact of forming this joint venture on TLP’s distribution coverage ratio is expected to be nominal over the long-term. TLP will continue to own and operate 946,000 barrels of tankage in Brownsville independent of the joint venture.
“The joint venture represents an excellent step forward for closer cooperation with our largest customer in Brownsville while maintaining an independent asset base that provides additional opportunities for our other storage customers,” said Randy Majors, Senior Vice President for Business and Commercial Development.
