Canada-headquartered Gibson Energy announced June 15 that it has agreed to acquire a 100 percent interest in South Texas Gateway Terminal for $1.1 billion in cash.
The newly built STGT is a high-quality crude oil export facility that operates alongside a deep-water, open access marine terminal in Ingleside, at the mouth of the Corpus Christi Bay.
Latham & Watkins represents Gibson Energy in the transaction with a corporate deal team led by Century City partners Jordan Miller and Jason Silvera and Houston partner Nick Dhesi, with associates Daniel Glavin, Sam Bentley, Tim Day and Tim Plummer. Advice was also provided on tax matters by Century City partner Pardis Zomorodi; on employee and benefits matters by Los Angeles partner David Taub, with associate Joseph Benedetto; on data and technology transactions matters by Orange County counsel David Kuiper, with associate Amy Tosi; on environmental matters by Los Angeles/Houston partner Joshua Marnitz, with associate Jen Garlock; on real estate matters by Chicago partner Rachel Bates, with associate Cristian Kelly; on regulatory matters by Washington, D.C. partners Jason Cruise and James Barker; on labor matters by Chicago associate Laura Waller; and on insurance matters by Los Angeles associate Harrison White.
Originally placed in service in July 2020, the 20-tank STGT completed final construction in March 2021 and is built to store as much as 8.6 million barrels of crude oil fed from the Permian and Eagle Ford basins through a pipeline complex — much of which is also newly built.
The storage complex includes deep-water docks that allow the simultaneous loading of two VLCCs (Very Large Crude Carrier) with a permitted throughput capacity of 1 million barrels per day, making it the second largest crude oil terminal in the U.S.
About $1.1 billion in bridge financing is being provided by Royal Bank of Canada, BMO Capital Markets and JPMorgan Chase Bank. Permanent financing will be backed by a $350 million bought deal offering of subscription receipts, along with various debt offerings. The company says the offerings have been structured to maintain the company’s DBRS and S&P debt ratings.