Quadra Energy Trading Inc., a wholly owned subsidiary of Nexen Marketing U.S.A., acquired a major supplier to the ethanol industry in early March.

Wittig Energy Resources LLC—a propane and natural gasoline provider serving the central United States from Texas to North Dakota—has grown with the ethanol industry, furnishing denaturant and ethanol to its diverse customer base for years. Wittig Energy's footing in the ethanol and natural gas liquids markets no doubt helped seal the deal for Quadra, which purchased Wittig Energy for an undisclosed price, confirmed Patrick Loftus, president of Quadra. "Wittig brings their strong customer base, and great knowledge of ethanol and denaturant to Quadra Energy Trading," he told EPM.

According to Loftus, the arrangement was made official March 1, but negotiations had been going on for months. "Our discussions got serious about two-and-a-half months ago," Loftus said.

Wittig Transport Inc.—Wittig Energy's army of trucks, railcars and barges—was not a part of the deal though. Commercial arrangements between Quadra Energy and Wittig Transport have been made, however. Quadra Energy is convinced that the timely and consistent deliveries of propane, natural gasoline and ethanol are keys to its success, and Quadra's management is confident Wittig Transport can carry out that mission statement.

"We're very excited," Loftus said. The new relationships with the experienced and knowledgeable Wittig Energy team—and the customers Wittig Energy has been servicing for years—is a lot to be excited about, he added.