Inergy Midstream, L.P. plans to buy Rangeland Energy, LLC, owner and operator of the COLT crude oil rail terminal, storage, and pipeline facilities, for $425 million.
The COLT Hub is located near the town of Epping in Williams County, ND in the heart of the Bakken and Three Forks shale oil-producing areas. The COLT Hub provides producers, refiners, and marketers with the largest open-access crude oil distribution hub in North Dakota.
With 720,000 barrels of crude oil storage and two 8,700-foot rail loops, the COLT Hub can accommodate 120-car unit trains and is capable of moving more than 120,000 bpd by rail. COLT’s customers can source product via the eight-bay truck unloading rack, the COLT Connecter, a 21-mile, 10-inch bi-directional pipeline that connects the COLT Hub to the Enbridge and Tesoro pipelines at Dry Fork (Beaver Lodge/Ramberg junction), the Banner gathering system, and a planned connection to the Bear Tracker Energy gathering system.
The acquisition is an expansion of Inergy Midstream’s shale-focused infrastructure portfolio and extends Inergy’s refinery and producer-services businesses. The COLT Hub has a first-mover advantage in the Bakken and should lead to incremental crude oil and NGL investments.