Ferrellgas Partners, a US retail marketer of propane, is selling some of its non- strategic storage and terminal assets from its operating partnership to Houston, Texas-based Enterprise Products Partners in a transaction worth $144m.
The sale also includes the company’s underground storage facilities in Arizona, Kansas and Utah, along with its rail and pipeline-to-truck terminals and storage facilities in Minnesota and North Carolina.
The facilities, which have a combined storage capacity of approximately 257 million gallons, are designed to segregate commonly stored products such as propane, butanes, pentane, mixed LPGs and other specialty products. Over 70% of the combined storage space is currently leased to third parties.
The terminal facilities feature 43 bulk propane storage tanks with a combined capacity of 1.4 million gallons (33,000 barrels), and provide a supply to retail and wholesale marketers in the region.
Under the terms of the agreement, Ferrellgas will maintain a level of storage volume and terminal throughput with Enterprise Products Partners at the storage and terminal facilities for a period of five years, with the option to extend for an additional five years.