Global Partners LP (NYSE: GLP) today announced that it has signed an agreement to acquire 100 percent of the membership interests in a West Coast crude oil and ethanol facility near Portland, Oregon from Cascade Kelly Holdings LLC. The total purchase price is expected to be approximately $95 million. The transaction includes a rail transloading facility serviced by the BNSF Railway, 200,000 barrels of storage capacity, a deepwater marine terminal, a 1,200-foot dock and the largest ethanol plant on the West Coast. Situated along the Columbia River in Clatskanie, Oregon, the site is located on land leased under a long-term agreement from the Port of St. Helens. In November 2012, the facility began transloading unit trains of crude oil.
“This transaction capitalizes on our advantaged logistics and enables Global to supply cost-competitive crude and ethanol to refiners and customers on the West Coast,” said Eric Slifka, Global’s president and chief executive officer. “From our origination hub in the Bakken region of North Dakota, we will now have destination assets on both coasts. The Oregon site is linked via BNSF to the Basin Transload facility in Beulah, North Dakota while our Albany, NY terminal is connected via single line haul on Canadian Pacific to the Basin Transload location in Columbus, North Dakota. This facility also creates a link between the Western Canadian Sedimentary Basin and Pacific refiners. With the pending closing of our Basin Transload acquisition this quarter, these new assets increase our capability to transport crude from the U.S. and Canadian mid-continent and extend our virtual pipeline to the West.”
“Because certain regions of the West Coast energy market have limited pipeline access, the dynamics of sourcing and logistics for PADD V refiners and customers are comparable to those we see in the Northeast,” Slifka said. “As we have demonstrated to those customers, we believe that we can apply our rail and marine expertise to meet the demand for crude and ethanol on the West Coast. Given the 3.3 million barrels a day of crude refining capacity in PADD V, this facility represents an opportunity for Global to drive additional product volumes and enhance margins.”
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts