Plains All American Pipeline Sells Crude Oil Terminals

A subsidiary of TransMontaigne Partners L.P.  has entered into an agreement to acquire the Martinez Terminal and Richmond Terminal from an affiliate of Plains All American Pipeline, L.P., for a total purchase price of $275 million. The acquisition is expected to be financed through the proceeds of a common unit offering and cash available from other sources. The closing of the acquisition is expected to occur on or about Jan. 1, 2018, subject to customary closing conditions.

“We believe that this transaction strengthens our position as one of the leading refined products terminaling and transportation service providers in the country,” said Fred Boutin, Chief Executive Officer of TransMontaigne Partners. “The West Coast Facilities are strategically located within the San Francisco Bay Area refining complex, one of the largest refining complexes in North America. These terminals and their fee-based cash flows are well-aligned with our existing business model, and are backed by agreements with customers that include many of the largest, most-recognizable refining, refining logistics and merchant trading companies in the world.”

Combined, the Martinez and Richmond Terminals include a total of 64 storage tanks with approximately 5.4 million barrels of storage capacity. The terminals have extensive connectivity to domestic and international refined product and crude oil markets through significant marine, pipeline, truck and rail capabilities, and are supported by multi-year, fee-based agreements with contract terms of up to 5 years.

 

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