One of the country’s propane majors has announced plans for another acquisition deal that would expand its reach and customer base into the lucrative New England region.
Delaware-based NGL Energy Partners LP has signed an agreement with North American Propane Inc. (NAP) to acquire assets in Massachusetts, Maine, Connecticut, New Hampshire, Rhode Island, Pennsylvania, Delaware, New Jersey and Maryland, marketwatch.com reports.
“This purchase expands our operations in the New England market and provides entry into the MidAtlantic market of the US,” Partnership chief executive H. Michael Krimbill said. “NAP serves in excess of 50,000 customers and delivers about 18 million gallons of retail propane volume, 8 million gallons of wholesale propane volume, and 10 million gallons of distillate volume annually.”
Krimbill said the deal included three propane terminals, two of which have rail and truck capability, with a combined propane storage capacity of 1.2 million gallons. NGL midstream would own 18 natural gas liquids terminals from coast to coast once the deal was completed. The transaction is subject to Hart-Scott-Rodino Act approval and is expected to close at the end of January or early February.
NGL Energy Partners LP was created through the October 2010 merger of Hicksgas and NGL Supply. In the last year it has announced acquisitions of Pacer Propane, E. Osterman Propane and SemStream assets, adding to NGL’s already sizable customer base and propane storage capacity across the US.
In other news, propane heavyweight Ferrellgas Partners LP, one of the country’s biggest propane retailers, this month announced the acquisition of Rio Grande Valley Gas Inc. of Texas. The deal adds nearly 2500 customers to the Ferrellgas stable. Specific terms of the transaction were not disclosed. The purchase is Ferrellgas’ third acquisition in Texas this fiscal year as it expands its reach into the southern state.
Ferrellgas LP serves about one million customers in all 50 states, the District of Columbia, and Puerto Rico.