Global Partners to buy ethanol and crude oil facility

Terminal network owner Global Partners has signed an agreement to acquire a Portland, Oregon-based crude oil and ethanol facility from Cascade Kelly Holdings for approximately $95 million (€70 million).

Assets included in the transaction are 200,000 barrels of storage capacity, a rail transloading facility served by the BNSF Railway, a deepwater marine terminal and a 1,200ft. dock, in addition to an ethanol plant.

Speaking about the deal, Eric Alifka, Global's president and CEO, comments: 'This transaction capitalises on our advantaged logistics and enables us to supply cost-competitive crude and ethanol to refiners and customers on the West Coast. This facility also creates a link between the Western Canadian Sedimentary Basin and Pacific refiners. These new assets increase our capability to transport crude from the US and Canadian mid-continent and extend our virtual pipeline to the West.'

The company's purchase of Cascade Kelly Holdings has been approved by the board of directors of the partnership's general partner, Global GP, and is subject to regulatory approvals among other closing conditions.

The acquisition is due to be finalised by the end of this quarter.

In a statement, Global said it also expects to close its $80 million investment of a 60% stake in Basin Transload early this year.