US firm's big plans for Petroplus

From the archive, first published Thursday 19th Jan 2006.

PETROPLUS in Waterston - the UK's largest fuel storage facility - is being earmarked for further expansion after being sold to a huge American company.

SemGroup LP has signed a definitive purchase and sale agreement to acquire the Waterston site from Petroplus International BV.

SemGroup - part owned by the controversial Carlyle Group - is listed as the ninth largest private American company and the Petroplus site will be its first asset owned outside North America.

The 57 staff currently employed at Petroplus will all transfer to SemGroup. Tom Kivisto, SemGroup president and chief executive officer, described the Waterston site's strategic value.

He said: "The terminal is close to key UK refineries and is utilised as intermediate storage for supplies produced from them.

"Historically, much of the crude oil and gasoline stored there is shipped to the US east coast. With US demand continuing to grow, Milford Haven will need to be expanded."

Mr Kivisto said the company was attracted by the road, rail and marine links and the fact that the terminal already has 9.4 million barrels of storage capacity and more than 80 tanks.

Importantly, the sale to SemGroup does not include the defunct Gulf refinery equipment at the Petroplus site.

That remains the subject of a separate sale to an Asian company and removal of the stacks and equipment is expected to be completed between March of 2006 and March of 2007.

Waterston county councillor Ken Edwards told the Mercury: "The news that the old infrastructure of the old Gulf site at Petroplus is going to go in just over a year is great news for the village of Waterston.

"Thankfully the old infrastructure was not included in the sale of Petroplus because if it had been we would have had to start the whole process over again."

Cllr Edwards added that he was looking forward to establishing a good relationship with the new company and working alongside them.

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