NuStar Energy has agreed to sell its two bulk liquids storage terminals in Texas City to BWC Terminals for $106m. The deal is expected to close before the end of the year. “While the Texas City terminals are great assets with outstanding operations and employees, the location and unique configuration of these terminals are no longer synergistic with NuStar’s strategies for our other Gulf Coast assets,” says Brad Barron, president/CEO of NuStar. “For this reason, we determined that the best path forward for the continued success of these facilities and NuStar is to allow them to be acquired by an entity that can take advantage of the terminals’ niche petrochemical and petroleum capabilities. We are pleased that BWC Terminals has just such a business model.
““And while it was a difficult decision, this divestiture will allow us to deploy the proceeds to further improve our debt metrics and self-fund a larger proportion of our capital programme,” Barron adds. “We are pleased that our Texas City employees will now have the opportunity to be a part of a strong and growing company with a business model that is more operationally synergistic with the strengths of these terminals. This should create more growth opportunities for the operations and provide employees with more resources to ensure their continued growth and success as well.”
Mike Suder, CEO of BWC Terminals, says: “I’m confident that Texas City is a natural fit for the BWC organisation. Like NuStar Texas City, we store a diverse array of liquids - including hydrocarbons, chemicals, and agricultural products - and we believe the strength of our combined business will help further develop Texas City’s operational capabilities.”[post_title] => NuStar to sell Texas City sites [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => nustar-to-sell-texas-city-sites [to_ping] => [pinged] => [post_modified] => 2020-11-03 13:37:59 [post_modified_gmt] => 2020-11-03 13:37:59 [post_content_filtered] => [post_parent] => 0 [guid] => https://hcblive.com/?p=30076 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw )