Global Partners LP announced Feb. 4 the completion of its previously announced acquisition of a 60% membership interest in Basin Transload LLC, which operates two crude-oil transloading facilities in Columbus and Beulah, North Dakota, with a combined rail-loading capacity of 160,000 barrels per day. The purchase price, subject to post-closing adjustments, was approximately $85 million, which Global financed through an increase in its credit facility.
“Basin Transload provides us with strategically located assets in the Bakken region,” said Eric Slifka, Global’s president and CEO. “The facilities are in close proximity to key suppliers and producers in this high-growth area. Together, these facilities help form a network of unique origin and destination locations through which our customers can efficiently supply cost-competitive crude oil to destinations on the East and West coasts.”
Slifka noted that the transaction complements Global’s recently announced agreement to purchase a West Coast crude-oil transload and ethanol facility near Portland, Oregon. “That facility is linked via the BNSF Railway to the Beulah facility, where Basin Transload is constructing a 140,000-barrel tank and truck-offloading rack to support crude-oil production in the Williston Basin,” he said. “Our Albany, New York, terminal is connected via a single line haul on Canadian Pacific to Basin Transload’s Columbus location, where we own and operate a 100,000-barrel storage tank and truck-offloading rack.”
The Basin Transload operations are expected to be accretive in the first full year of operation, based on their current and anticipated future performance, as well as on economic and market conditions.
“By directly addressing the lack of infrastructure in high-growth energy regions of the country,” Slifka said, “we are creating new opportunities to increase volume and margins by providing a wide range of value-added services, including leases, to producers and refiners.”