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$5 Billion Deal Creates New Oil Export Giant In US Gulf Coast

$5 Billion Deal Creates New Oil Export Giant In US Gulf Coast

OilPrice.com
By Tsvetana Paraskova
Sep 17, 2019, 1:30 PM CDT

Energy Transfer LP has signed a definitive agreement to buy SemGroup Corporation in a cash and stock transaction valued at US$5 billion including SemGroup’s debt—a deal expected to boost Energy Transfer’s crude oil and NGL transportation connectivity.

The deal, expected to close late this year or early next year, is pending the approval by SemGroup’s stockholders and other customary regulatory approvals.  

“Energy Transfer will significantly strengthen its crude oil transportation, terminalling and export capabilities with the addition of the Houston Fuel Oil Terminal (HFOTCO), a world class crude oil terminal on the Houston Ship Channel with 18.2 million barrels of crude oil storage capacity, five deep-water ship docks and seven barge docks,” the company said, commenting on the value that SemGroup’s assets could bring to its business.

In order to further boost crude oil and NGL connectivity in Texas, Energy Transfer also announced plans to build a new crude oil pipeline, the Ted Collins Pipeline, to connect HFOTCO to Energy Transfer’s Nederland Terminal... FULL ARTICLE

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