Marysville, Michigan: DCP Midstream just announced the purchase of a large propane storage facility in the state. (image: hawkeyetherailfan via flickr.com)
A major propane wholesaler is making a move on the large Michigan market, buying a storage facility and well-connected supply point in the state. DCP Midstream made a deal worth about $101 million for Marysville Hydrocarbon Holdings, according to this press release that DCP put out yesterday.
With the new buy, the Denver-based DCP gets:
• Nine underground salt caverns with 285 million gallons of propane storage capacity
• A supply point — by rail, truck, and pipeline — for refiners and wholesalers in the Midwest, Northeast, and Ontario
• A 620-acre site, with the potential for two more salt caverns
Mark Borer, CEO and president for DCP, said the acquisition opens up some supply and logistics capabilities for the company. And they get it in a strategic state. Michigan has the largest retail market for propane in the country.
Through joint ventures, DCP is currently involved with two gas pipelines in Michigan, according to its website.