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Blackline, TPG credit arm create midstream JV

Blackline Midstream, formed to acquire oil and gas assets, buys New Hampshire propane terminal from Houston-based Trammo.

A joint venture between a TPG Capital affiliate and Texas-based Blackline Partners has acquired the owner of a major New Hampshire propane storage terminal.

Blackline Midstream, formed by Blackline and San Francisco-based TPG Sixth Street Partners, bought Sea-3 from New York City-based Trammo. Terms of the deal were not released.

The company’s assets include 530,000 barrels of propane storage, a truck-loading rack, an ocean-access loading dock and a rail-receiving rack, which is set to be upgraded.

“Blackline’s deeply experienced operations management team combined with [TPG’s credit arm] TSSP’s financial strength and expertise position us to integrate Sea-3 into a strong, well-equipped midstream growth platform,” Blackline Partners chief executive Mike Day said.

The new JV will focus on buying and developing midstream oil and gas assets. While Sea-3 in Newington, New Hampshire, is Blackline Midstream’s first acquisition, TSSP has already been active in the space. In April, TSSP invested an undisclosed amount in Trinity Midstream, a Texas-based firm operating 300km of pipeline in the Permian Basin used to channel CO2 to drillers. With oil prices stabilising, 2017 has seen a spate of midstream deals, with many channelling oil from fields in and around West Texas.

For Trammo, the deal marks a continuation of the sell-off of its LPG assets. Earlier this year, the firm sold its Tampa Bay, Florida, terminal to Houston-based Plains All American Pipeline.