The European operations include six liquids storage terminals in the UK and one facility in Amsterdam.

NuStar president and CEO Brad Barron said: “This was a very important strategic decision for NuStar but also a difficult one given the quality of the assets and workforce.

“But as we have said, the assets were not synergistic with our other operations, and the sale helps us achieve the final component of our comprehensive plan launched earlier this year to position NuStar for long-term success by significantly lowering our debt metrics in order to deliver strong, sustainable distribution coverage for the future.”

The plan also includes simplifying NuStar’s corporate structure, eliminating the incentive distribution rights to lower the company’s cost of capital, and enabling it to build on the strength of its asset base with less dependence on the equity capital markets.

NuStar will use the proceeds from the transaction to reduce debt and fund the growth of its core operations.

Barron said: “We are very pleased with the progress we have made in implementing our plan and the results we have seen.

“All of this was necessary due to a fundamental shift in the Master Limited Partnership (MLP) sector this past year that required the transformative actions we have taken to ensure the long-term financial strength of the company.

“And we are pleased that these operations and employees are now part of another strong company with more operational and geographical synergies, which should create more growth opportunities for the operations and more advancement opportunities for the employees.”

Wells Fargo Securities served as NuStar’s exclusive financial advisor on this transaction.

NuStar Energy, a master limited partnership based in San Antonio, has more than 9,700 miles of pipeline and 75 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids. It has operations in the US, Canada, Mexico and St Eustatius in the Caribbean.

Inter Pipeline, a petroleum transportation, natural gas liquids processing, and bulk liquid storage business based in Canada, owns and operates energy infrastructure assets in western Canada and Europe.