Trafigura, Haddington buy major US NGL storage facility
Global commodities trader Trafigura said July 12 it had teamed up with Houston-based investment firm Haddington Ventures to acquire a majority stake in the largest storage facility for natural gas liquids (NGLs) in the US West.
The pair paid $70mn to acquire a 71.5% interest in Sawtooth Caverns LLC from NGL Energy Partners. At deep-well salt caverns in Utah, Sawtooth has a storage capacity of 7mn barrels of NGLs and refined products, making it the largest in the region.
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Trafigura said the storage facility was situated in a key location, close to road and rail transit systems that can access western US states, Canada and Mexico.
“As the Western US does not have comprehensive pipeline infrastructure, Sawtooth Caverns’ strategic location and significant storage capacity are key differentiators that will enable Trafigura to expand its service offering and provide value to our customers in a very dynamic region of North America, where we have a growing presence,” said Robert Kreider, director for Trafigura Trading LLC.
Trafigura and Haddington will co-own the stake in Sawtooth via a 50:50 joint venture.