TULSA, OKLA., April 2 /CNW/ - SemStream, L.P. announced its acquisition
today of all of the propane assets of Energy West (Nasdaq: EWST) that are
located in Arizona. SemStream's intention to purchase the assets was initially
announced in July 2006. It was approved by the Arizona Corporation Commission
on March 20, 2007, and has an effective date of April 1, 2007. The acquisition
is SemStream's first in Arizona.
Larry Payne, SemStream president and chief operating officer, said,
"These tremendous assets complement SemStream's strong supply and marketing
presence in the Southwest. We are very pleased to own assets in Arizona and
look forward to serving more than 10,000 customers there."
Payne said the business will be renamed SemStream Arizona Propane and the
21 people who previously worked for Energy West will become SemStream
The acquisition adds to SemStream's asset base a regulated underground
pipeline system with 170 miles of pipe and approximately 300,000 gallons of
bulk storage and related assets. The assets serve approximately 7,500
regulated customers in the Arizona communities of Payson, Pine and Strawberry.
The acquisition also includes unregulated propane assets used in propane sales
to rural areas adjacent to those communities. The unregulated business serves
approximately 2,800 additional customers.
SemStream, L.P., a subsidiary of SemGroup, L.P., is a North American
midstream business providing natural gas liquids (NGL) supply, marketing,
storage and terminal services through 11 privately owned propane terminals. It
is one of the largest private propane terminal operators in the industry and
is a major shipper on all six North American NGL common carrier pipelines. The
company is based in Tulsa, Oklahoma.
For further information:
For further information: SemStream, L.P. Jim Asbury, 918-524-8738
Business Development & Projects Manager