As part of an asset refocusing plan, Martin Midstream Partners LP (MMLP) has agreed to sell its membership interests in four natural gas storage facilities in the southeastern United States to Hartree Cardinal Gas LLC for $215 million.
Under a definitive agreement with Hartree Cardinal Gas LLC, a subsidiary of Hartree Bulk Storage LLC, MMLP is selling its interests in Arcadia Gas Storage LLC, Cadeville Gas Storage LLC, Monroe Gas Storage LLC and Perryville Gas Storage LLC.
“Our agreement to sell the natural gas storage assets is an important piece of the partnership’s strategy to strengthen the balance sheet and refocus our operational expertise on the refinery services industry,” said MMLP CEO Ruben Martin.
Steve Semlitz, cofounder of Hartree Partners LLC, said the assets “are high-performing facilities strategically located in the Gulf Coast. Hartree Bulk Storage plans on further optimizing these facilities and their capabilities in the near-term, to better serve customers in the ever-growing Gulf Coast region.”
The assets consist of about 50 Bcf of working gas capacity in northern Louisiana and Mississippi. The transaction is expected to close around the end of 2Q2019, subject to closing conditions.