Global Partners agrees to buy majority interest in Basin Transload
Global Partners LP, a Waltham-based company that specializes in the logistics of transporting crude oil and other products from the mid-continent region to the East Coast, said Friday that it has agreed to acquire a 60 percent membership interest in Basin Transload LLC; the total purchase price is expected to be about $80 million
Basin Transload operates two facilities in North Dakota with a combined rail loading capacity of 160,000 barrels per day, Global Partners said in a press release. One of those facilities is located along the Canadian Pacific Railway and provides single line haul service to Global’s recently expanded terminal in Albany, NY.
Parts of North Dakota are in the Bakken region,”one of fastest growing oil producing regions in North America,” Eric Slifka, Global’s president and chief executive office, said in a statement.
“The dramatic growth in Bakken crude oil production and related rail transport is another key component in Global’s diversification strategy,” Slifka said. “Our recently completed Albany rail expansion, for example, serves as a ‘virtual pipeline’ to transport crude and other products from the mid-continent region to Albany, directly addressing the lack of pipeline infrastructure on the East Coast. Our rail shipments to the East Coast average just four or five days, with some completed in as little as two-and-a-half days. From Albany, it’s then just a day to day-and-a-half trip by barge to the East Coast refineries.”Chris Reidy can be reached at firstname.lastname@example.org.