Martin Midstream to sell natural gas storage assets in US to Hartree

Martin Midstream has signed a definitive agreement to sell its membership interests in Arcadia Gas Storage, Cadeville Gas Storage, Monroe Gas Storage, and Perryville Gas Storage in the US to Hartree Cardinal Gas for $215m.

All these natural gas storage assets comprise nearly 50 billion cubic feet (bcf) of working capacity with locations in northern Louisiana and Mississippi.

Martin Midstream president and CEO Ruben Martin said: “Our agreement to sell the Natural Gas Storage Assets is an important piece of the partnership’s strategy to strengthen the balance sheet and re-focus our operational expertise on the refinery services industry.”

Hartree Partners co-founder Steve Semlitz said: “We are excited about the opportunity for Hartree Bulk Storage to acquire the Natural Gas Storage Assets and operate them as independent facilities.

“The Natural Gas Storage Assets are high-performing facilities strategically located in the Gulf Coast. Hartree Bulk Storage plans on further optimising these facilities and their capabilities in the near-term, to better serve customers in the ever-growing Gulf Coast region.”

Subject to customary closing conditions, the transaction is expected to close in the second quarter this year.

Based in the US, Martin Midstream Partners’ primary activities include natural gas services, including liquids transportation and distribution services. It is also a provider of storage and packaging services for petroleum products and by-products.

Hartree Bulk Storage is an independent storage, terminalling and related infrastructure platform company. The firm is funded by Hartree Partners while the financing is managed by Oaktree Capital Management.