Trafigura one of the world’s leading independent commodity trading companies, together with Haddington Ventures LLC have acquired NGL Energy Partners LP’s 71.5 percent interest and associated assets in Sawtooth Caverns LLC (“Sawtooth”) for approximately USD70 million. Trafigura and Haddington Ventures now own Sawtooth as a 50:50 joint venture company.
Sawtooth, located near Delta, Utah, is the largest natural gas liquids (NGLs) storage facility in the Western United States, with approximately seven million barrels of NGLs and refined products storage capacity in its deep-well salt caverns. The facility is strategically located at a crossroads of infrastructure that includes access to the Union Pacific rail system and interstate highways, giving direct access to key markets in the Western United States, Canada, and Mexico.
“As the Western United States does not have comprehensive pipeline infrastructure, Sawtooth Caverns’ strategic location and significant storage capacity are key differentiators that will enable Trafigura to expand its service offering and provide value to our customers in a very dynamic region of North America, where we have a growing presence. We’re looking forward to supporting the existing management to continue building on a successful business,” said Robert Kreider, Director for Trafigura Trading LLC.
“Trafigura has the expertise and market presence, alongside Haddington Ventures’ significant expertise and experience in the development of salt caverns, to help us realize our ambition to become the Western energy hub of the United States,” said Dan Myers, CEO of Sawtooth Caverns.