CIG buys transload terminals

CIG buys transload terminals

CIG Logistics has bought three large, strategically-located transload terminals owned by U.S. Silica in the Permian Basin and Eagle Ford and Marcellus shale plays. 

These terminals are expected to serve as the foundation for a broader strategic relationship between the two companies under which CIG will serve as the preferred transload provider to U.S. Silica in the Permian Basin and Eagle Ford shale play. 

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The terminals are located in Odessa, Texas, Von Ormy, Texas and Benwood, West Virginia, and serve as critical logistics hubs for the oil and gas industry in the Permian Basin, Eagle Ford and Marcellus shale plays, respectively.

Consistent with CIG’s existing transload network, the acquired terminals are large scale and fit-for-purpose to meet the challenges of handling increasing proppant volumes per well throughout the unconventional shale basins in which they operate. As part of the transaction, CIG Logistics will also operate U.S. Silica’s facility in Seagraves, Texas.

“CIG is a best-in-class terminal operator with whom we have a long-standing business relationship. This transaction further cements our relationship with a top operator, further expands our best-in-industry logistics footprint and allows us to focus our internal resources on our growth priorities,” said Tony Fox, Vice President, Supply Chain at U.S. Silica.

With the agreement, CIG Logistics will strengthen its core business of owning and operating transloading facilities to help oil and gas producers improve supply chain logistics with increased efficiencies, enhanced safety and reduced costs.

“U.S. Silica is a true leader in the proppant industry supporting domestic oil and natural gas operations that drive the nation’s economic strength and energy independence,” said CIG Logistics Chief Executive Jonathan Green. “We’re proud to further expand our partnership with U.S. Silica and are confident this latest agreement demonstrates the value our logistics expertise can deliver for our customers.”

CIG Logistics is an independent provider of end-to-end proppant logistics solutions to leading oil and natural gas exploration and production companies, oilfield services providers and proppant producers. CIG’s logistics assets include 18 strategically located proppant and well consumable transload terminals and associated bulk storage silos across the most active oil and natural gas basins in Texas, New Mexico, Oklahoma, and West Virginia.

In addition to its expansive transload network, CIG also owns and operates a modular fleet of patented high-capacity last mile logistics trailers, automated sand loading systems and mobile gravity fed containers used to efficiently store and deliver proppant at well sites under the SANDSTORM brand.

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16th April 2018


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