Trafigura and Haddington Ventures acquire Sawtooth Caverns, the largest natural gas liquids storage facility in the Western United States
Houston, 12 July 2021 – Trafigura Trading LLC (“Trafigura”), a wholly-owned, indirect U.S. subsidiary of Trafigura Group Pte Ltd, 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.
For further information, please contact:
Trafigura Press Office: +41 22 592 4528 or firstname.lastname@example.org
About Haddington Ventures
Founded in 1998, Haddington Ventures LLC oversees a growing portfolio of successful conventional and renewable energy businesses that are bringing innovative new infrastructure to the U.S. energy sector. Haddington Ventures, through its private equity funds, generally makes control-oriented investments in portfolio companies acquiring or developing energy infrastructure underwritten by long term contracts. Haddington Ventures is led by a team of senior energy professionals who have invested more than USD1.5 billion in companies focused on energy infrastructure across multiple private equity funds and co-investment partnerships.
About Sawtooth Caverns
Sawtooth Caverns, LLC is located near Delta, Utah and is the largest natural gas liquids storage facility in the Western United States, with approximately seven million barrels of natural gas liquids and refined products storage capacity in its deep-well salt caverns. The Company is also able to store refinery feedstocks, such as olefin blends. In 2020, Sawtooth completed an expansion allowing it to also receive, store and return refined products and in March 2021 completed its refined products expansion with the construction of a truck rack.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.
The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management.
With circa 850 shareholders, Trafigura is owned by its employees. Over 8,500 employees work in 48 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.