The assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi
Image: Martin Midstream Partners intends to sell natural gas storage assets. Photo: Image by Adam Radosavljevic from Pixabay.
Master limited partnership Martin Midstream Partners has signed an agreement with Hartree Bulk Storage subsidiary Hartree Cardinal Gas to sell interests in natural gas storage assets for $215m in cash.
Martin Midstream GP, the general partner of the Partnership, president and CEO Ruben Martin said: “Our agreement to sell the Natural Gas Storage Assets is an important piece of the Partnership’s strategy to strengthen the balance sheet and re-focus our operational expertise on the refinery services industry.”
Martin Midstream will sell membership interests in natural gas storage assets
Under the terms of the deal, Martin Midstream has agreed to sell membership interests in natural gas storage assets comprising Arcadia Gas Storage, Cadeville Gas Storage, Monroe Gas Storage, and Perryville Gas Storage.
The assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi.
Hartree Partners co-founder Steve Semlitz said: “We are excited about the opportunity for Hartree Bulk Storage to acquire the Natural Gas Storage Assets and operate them as independent facilities.
“The Natural Gas Storage Assets are high-performing facilities strategically located in the Gulf Coast. Hartree Bulk Storage plans on further optimizing these facilities and their capabilities in the near-term, to better serve customers in the ever-growing Gulf Coast region.”
In April 2019, Martin Midstream Partners said it is seeking to divest certain non-core assets and/or businesses to strengthen the balance sheet.
Subject to customary closing conditions, the transaction is planned to be completed on or around the end of the second quarter.
In January 2019, Hartree Partners and funds managed by Oaktree Capital Management announced the formation of liquids storage, terminaling and logistics platform company, Hartree Bulk Storage with an initial equity commitment worth $735m.
The new company Hartree Bulk Storage plans to capitalize on the strong global demand for bulk liquids storage infrastructure through mergers and acquisitions, greenfield projects and joint venture partnerships.
The newly formed platform is also expected to provide independent solutions for refiners, petrochemical manufacturers, marketers and producers of crude oil, refined products, NGLs and other bulk liquids.