MPLX buys US Gulf Coast liquids export terminal for $450m

Marathon Petroleum’s master limited partnership company MPLX has acquired an eastern US Gulf Coast liquids and chemicals export terminal from Pin Oak Holdings in a $450m deal.

Also known as Pin Oak Mt. Airy, the terminal is located in Louisiana on the Mississippi River within 25 miles of four refineries with an aggregate refining capacity in excess of 1.3 million barrels of crude/day.

Despite the sale, Pin Oak will continue to hold an economic interest in the facility.

Pin Oak acquired the terminal in 2012 to develop a full-service transportation hub and with a proposal to offer services, including offloading, storage, heating, blending and transfer of crude oil, refined products, and chemicals.

The acquisition comprises four million barrels of fully leased storage capacity and an operational deepwater ship dock and represents an opportunity to further expand the capacity to ten million barrels.

Pin Oak Mt. Airy also has permission to construct a second deepwater ship dock.

MPLX president Michael Hennigan said: “This acquisition provides an excellent platform for MPLX, as production growth and refining output increase the requirement for additional export capacity.

“With a prime location on the Mississippi River and proximity to over two million barrels per day of refining capacity, this terminal will serve as a platform to meet growing export needs, expand our third-party business, and give MPLX tremendous flexibility to help its customers meet upcoming International Maritime Organization fuel standards.”

Operating as a partnership between Dauphine Midstream and Swiss commodity trading firm Mercuria Energy Group, Pin Oak is primarily focused on developing, acquiring, and operating midstream and downstream assets in the US Gulf Coast.

The company recently started construction on its Pin Oak Corpus Christi liquid bulk export terminal in Corpus Christi, Texas, in a bid to begin full operations in the fourth quarter of next year.