Hartree to buy gas storage assets from Martin Midstream
Hartree Cardinal Gas, a subsidiary of Hartree Bulk Storage, has agreed to acquire from Martin Midstream Partners its membership interests in Arcadia Gas Storage, Cadeville Gas Storage, Monroe Gas Storage, and Perryville Gas Storage for $215 million in cash.
Hartree Cardinal Gas LLC, a subsidiary of Hartree Bulk Storage LLC, has agreed to acquire from Martin Midstream Partners LP its membership interests in Arcadia Gas Storage LLC, Cadeville Gas Storage LLC, Monroe Gas Storage LLC, and Perryville Gas Storage LLC for $215 million in cash.
The assets consist of 50 bcf of working capacity in northern Louisiana and Mississippi.
Ruben Martin, president and chief executive officer of Martin Midstream GP LLC, the general partner of the partnership, said the deal to sell the gas storage assets is part of the plan to “refocus our operational expertise on the refinery services industry.”
Hartree plans to operate the assets as independent facilities, said Steve Semlitz, co-founder of Hartree Partners LP. “Hartree Bulk Storage plans on further optimizing these facilities and their capabilities in the near-term, to better serve customers in the ever-growing Gulf Coast region,” he said.
The transaction is expected to close on or about the end of this year’s second quarter, subject to customary closing conditions.