Morgan Stanley is selling its controlling stake in oil storage and transport company TransMontaigne Inc to NGL Energy Partners LP for $200 million, essentially ending its long run as the biggest physical oil trader on Wall Street.The long-awaited deal comes months after the bank announced its intent to sell most of its global physical oil trading operations to Russian state-run oil major Rosneft, including its 49 percent stake in shipping company Heidmar. .It is the latest sign of how growing regulatory pressure is reshaping commodity markets.NGL Energy Partners, an up-and-coming master limited partnership MLP that last year bought the oil trading division of privately held Gavilon, said an additional amount would be paid for inventory transferred at closing. The refined products held by TransMontaigne Inc could be valued at up to $550 million, a person familiar with the matter said.The TransMontaigne MLP includes some 48 fuel terminals with nearly 24 million barrels of storage capacity on the U.S. Gulf Coast, in Florida, the Midwest and across the Southeast, including along the strategically important Colonial Pipeline, which ships gasoline and diesel from the Gulf to the East Coast.
via CORRECTED-UPDATE 2-Morgan Stanley sells TransMontaigne to NGL as physical oil role shrinks | Reuters.
