The commodity trader Trafigura Trading, together with Haddington Ventures, has acquired NGL Energy Partners’s 71.5% interest and associated assets in Sawtooth Caverns for $70 million.
Trafigura and Haddington Ventures now own Sawtooth as a 50:50 joint venture company.
Sawtooth, located near Delta, Utah, is the largest natural gas liquids NGLs storage facility in the Western US, with approximately seven million barrels of NGLs and refined products storage capacity in its deep-well salt caverns.
The facility is located at a crossroads of infrastructure that includes access to the Union Pacific rail system and interstate highways, giving direct access to key markets in the Western US, Canada, and Mexico.
“As the Western United States 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. We’re looking forward to supporting the existing management to continue building on a successful business,” said Robert Kreider, director for Trafigura Trading.
For more information visit: www.trafigura.com