Atlantic Energy owns and operates a marine import terminal with 20 million gallons of above ground storage in the Port of Chesapeake, Virginia.
The assets serve as an important supply point for propane customers in the mid-Atlantic region, and will extend the partnership’s existing northeast US wholesale propane business into the mid-Atlantic.
Mark Borer, president and CEO of DCP Midstream Partners, said: “This immediately accretive acquisition provides us with an excellent opportunity to expand upon our existing market position as one of the largest wholesale propane suppliers in the northeast. One of the keys to our success in the wholesale propane business has been the breadth of our supply options.
“The addition of the Chesapeake assets will build on our supply and logistics capabilities and help in continuing to ensure reliable deliveries to our customers. Given the nature of our business model and contracts, this business will contribute 100% fee-like margins to our asset portfolio.”
