Profile: TransMontaigne Partners LP (TLP.N)
29 Sep 2014
TransMontaigne Partners L.P. (TransMontaigne Partners) is a terminaling and transportation company with operations in the United States along the Gulf Coast, in the Midwest, in Brownsville, Texas, along the Mississippi and Ohio Rivers, and in the Southeast. The Company provides integrated terminaling, storage, transportation and related services for customers engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. Light refined products include gasolines, diesel fuels, heating oil and jet fuels. Heavy refined products include residual fuel oils and asphalt. Effective March 1, 2011, the Company acquired from TransMontaigne Inc. its Pensacola, Florida refined petroleum products terminal with approximately 270,000 barrels of aggregate active storage capacity. Effective October 18, 2011, it sold a 50% interest in the BOSTCO project to a subsidiary of Kinder Morgan Energy Partners, L.P.
TransMontaigne Services Inc. is an indirect wholly owned subsidiary of TransMontaigne Inc. TransMontaigne Inc. is an indirect wholly owned subsidiary of Morgan Stanley Capital Group Inc. (Morgan Stanley). The Company is controlled by its general partner, TransMontaigne GP L.L.C., which is an indirect wholly owned subsidiary of TransMontaigne Inc. Its facilities are located in five geographic regions, which include Gulf Coast, Midwest, Brownsville, River and Southeast facilities. It uses its terminaling facilities to receive refined products from the pipeline, ship, barge or railcar making delivery on behalf of its customers, and transfer those refined products to the tanks located at its terminals; store the refined products in its tanks for its customers; monitor the volume of the refined products stored in its tanks; distribute the refined products out of its terminals in vessels or truckloads using truck racks and other distribution equipment located at its terminals, including pipelines, and heat residual fuel oils and asphalt stored in our tanks and provide other ancillary services related to the throughput process. It derives revenue from its terminal and pipeline transportation operations by charging fees for providing integrated terminaling, transportation and related services. The fees it charges and its other sources of revenue are consisted of terminaling services fees, pipeline transportation fees, management fees and reimbursed costs and other revenue.
The Company generates terminaling services fees by distributing and storing products for its customers. Terminaling services fees include throughput fees based on the volume of product distributed from the facility, injection fees based on the volume of product injected with additive compounds and storage fees based on a rate per barrel of storage capacity per month. It earns pipeline transportation fees at its Razorback pipeline and Diamondback pipeline based on the volume of product transported and the distance from the origin point to the delivery point. It manages and operates tank capacity at its Port Everglades (South) terminal for an oil company and receives a reimbursement of its proportionate share of operating and maintenance costs. It manages and operates for an affiliate of Petroleos Mexicanos (PEMEX). Effective April 1, 2011, it entered into the Frontera joint venture. It manages and operates Frontera and receives a management fee. It provides ancillary services, including heating and mixing of stored products, product transfer services, railcar handling, wharfage fees and vapor recovery fees.
Gulf Coast Operations
The Company’s Gulf Coast operations include eight refined product terminals located in Florida. At its Gulf Coast terminals it handles refined products and crude oil on behalf of, and provide integrated terminaling services to, customers engaged in the distribution and marketing of refined products and crude oil and the United States government. Its Gulf Coast terminals receive refined products from vessels on behalf of its customers. In addition, its Jacksonville terminal also receives asphalt by rail and its Port Everglades (North) terminal also receives product by truck. It distributes by truck or barge at all of its Gulf Coast terminals. In addition, it distributes products by pipeline at its Port Everglades and Tampa terminals. It manages and operates the Port Everglades (South) terminal, and it is reimbursed by an oil company for its proportionate share of its operating and maintenance costs. The customers at its Gulf Coast facilities are Marathon Petroleum Company LLC and Morgan Stanley Capital Group.
Midwest Terminals and Pipeline Operations
In Missouri and Arkansas, the Company owns and operates the Razorback pipeline and terminals in Mt. Vernon, Missouri, at the origin of the pipeline and in Rogers, Arkansas, at the terminus of the pipeline. The Razorback pipeline is a 67-mile interstate common carrier pipeline, which transports light refined product on behalf of Morgan Stanley Capital Group from its terminal at Mt. Vernon, where it is interconnected with a pipeline system owned by Magellan Midstream Partners, to its terminal at Rogers. The Razorback pipeline has a capacity of approximately 30,000 barrels per day. It also owns and operates a terminal facility at Oklahoma City, Oklahoma. Its Oklahoma City terminal receives gasolines and diesel fuels from a pipeline system owned by Magellan Midstream Partners for delivery through its truck rack to Shell Oil Products U.S. (Shell), for redistribution to locations throughout the Oklahoma City region. On July 19, 2011, the Company entered into agreements for the construction and operation of approximately one million barrels of crude oil storage in Cushing, Oklahoma.
Brownsville, Texas Operations
Effective April 1, 2011, the Company entered into a joint venture with P.M.I. Services North America Inc. (PMI) at its Brownsville, Texas terminal. It operates the Frontera assets under an operations and reimbursement agreement between the Company and Frontera. It owns and operates approximately 0.9 million barrels of additional tankage and related ancillary facilities in Brownsville independent of the joint venture, as well as the Diamondback pipeline, which handles liquid product movements between Mexico and south Texas. At its Brownsville terminal it handles refined petroleum products, chemicals, vegetable oils, naphtha, wax and propane on behalf of, and provides integrated terminaling services to, customers engaged in the distribution and marketing of refined products and natural gas liquids. Its Brownsville facilities receive refined products on behalf of its customers from vessels, by truck or railcar. It also receives natural gas liquids by pipeline.
The Diamondback pipeline consists of an eight inches pipeline, which transports LPG approximately 23 miles from its Brownsville facilities to its Matamoros terminal, with approximately 16 miles located in Texas and approximately seven miles located in Mexico and a 6 inches pipeline, which runs parallel to the eight inches pipeline. The eight inches pipeline has a capacity of approximately 7,500 barrels per day. The six inches pipeline has a capacity of approximately 4,300 barrels per day. It also operates and maintains the United States portion of a 174-mile bi-directional refined products pipeline owned by PMI. This pipeline connects its Brownsville terminal complex to a pipeline in Mexico, which delivers to PEMEX's terminal located in Reynosa, Mexico and terminates at PEMEX's refinery, located in Cadereyta, Nuevo Leon, Mexico. The pipeline transports refined products and blending components. It operates and manages the approximately 18-mile portion of the pipeline located in the United States for a fee. The customers it serves at its Brownsville terminal facilities consist of wholesale and retail marketers of refined products and industrial and commercial end-users of refined products, waxes and industrial chemicals. Its customers are Valero Marketing and Supply Company (Valero), TransMontaigne Inc. and PMI Trading Limited.
The Company’s River facilities include 12 refined product terminals along the Mississippi and Ohio Rivers and the Baton Rouge, Louisiana dock facility. At its River terminals, it handles gasolines, diesel fuels, heating oil, chemicals and fertilizers on behalf of, and provides integrated terminaling services to, customers engaged in the distribution and marketing of refined products and industrial and commercial end-users. Its River terminals receive products from vessels and barges on behalf of its customers and distribute products to trucks and barges. The customer at its River facilities is Valero.
The Company’s Southeast facilities include 22 refined product terminals along the Plantation and Colonial pipelines. At its Southeast terminals, it handles gasolines, diesel fuels, jet fuel and heating oil on behalf of, and provides integrated terminaling services to customers engaged in the distribution and marketing of refined products. Its Southeast terminals receive products from the Plantation and Colonial pipelines on behalf of its customers and distribute products to trucks. The customer at its Southeast facilities is Morgan Stanley Capital Group.
The Company competes with BP p.l.c., Chevron U.S.A. Inc., CITGO Petroleum Corporation, Conoco Phillips, Exxon Mobil Corporation, Amerada Hess Corporation, Holly Corporation, Kinder Morgan, Inc., Magellan Midstream Partners, L.P., Marathon Ashland Petroleum L.L.C., Motiva Enterprises LLC, Murphy Oil Corporation, NuStar Energy L.P. and Sunoco, Inc.
TransMontaigne Partners LP
DENVER CO 80202
Company Web Links
- NGL Energy, TransMontaigne end talks on acquisition proposal
- Factbox - Wall St. and commodity risk: Morgan Stanley's VaR dips
- CORRECTED-UPDATE 2-Morgan Stanley sells TransMontaigne to NGL as physical oil role shrinks
- Morgan Stanley close to deal to sell TransMontaigne stake: WSJ
- Morgan Stanley close to deal to sell TransMontaigne stake -WSJ