NGL Energy Partners completes Gavilon acquisition

NGL Energy Partners LP has announced that it has completed the previously announced acquisition of all of the equity interests of Gavilon, LLC, the diversified midstream energy business owned by funds managed by Ospraie Management, General Atlantic and Soros Fund Management.

Acquired assets

Gavilon principally operates integrated crude oil storage, terminal and pipeline assets located in Oklahoma, Texas and Louisiana, along with a complementary crude oil and refined products supply, marketing and logistics business (SM&L).

Gavilon's crude oil assets include a 50% interest in Glass Mountain Pipeline, 4.14 million owned and 3.85 million leased barrels of storage in Cushing, Oklahoma, a marine terminal and nine truck terminals including more than 22 lease automatic study transfer units.

Through its SM&L business, Gavilon also leases a network of over 200 trucks, 350 railcars and eight barges to transport crude oil for customers. In addition, Gavilon markets and supplies refined products and natural gas liquids through a network of more than 300 distribution terminals across 39 states.

First major pipeline investment

"This combination is important for NGL, adding our first major pipeline investment in addition to crude oil storage at Cushing. The Glass Mountain Pipeline is scheduled to be operational in January 2014," said H. Michael Krimbill, Chief Executive Officer of NGL.

Greg Piper, Gavilon Chief Executive Officer, stated, "Our employees and executive team are excited to join the NGL organisation. We have multiple organic projects in development and look forward to continuing to enhance and expand our energy footprint."

Adapted from press release  by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/09122013/ngl_energy_partners_completes_gavilon_acquisition/