CALGARY — A Canadian company best known for its Alberta pipeline and petrochemical businesses has struck a $354-million deal to buy European storage terminals from Texas-based NuStar Energy, L.P.
Calgary-based Inter Pipeline Ltd. says the deal will add six liquids storage terminals in the United Kingdom — including one on the River Thames near London — and one facility in Amsterdam to the 16 European terminals it owns through its subsidiary, Inter Terminals.
Inter Pipeline CEO Christian Bayle says the addition of the coastal terminals establishes it as the largest independent storage operator in the United Kingdom with 12 terminals and provides an attractive entry into Amsterdam, the world's largest gasoline blending hub.
The company says it will issue shares to raise $200 million to partly pay for the purchase, covering the rest with debt.
Inter Pipeline says the transaction, which is expected to close before year-end, includes a total of 9.1 million barrels of storage.
The terminals operate as storage and blending hubs for refined products as well as the inland distribution of petroleum and petrochemical products.
In Canada, Inter Pipeline is building a $3.5-billion petrochemical complex near Edmonton to convert propane into polypropylene plastic.
It also owns 7,800 kilometres of pipelines transporting 1.4 million barrels per day of petroleum products and its natural gas liquids business processed an average of 2.9 billion cubic feet per day of liquids-rich gas in 2017.
© 2018 The Canadian Press