Energy Transfer and oil and natural gas transport firm SemGroup have completed their previously announced $5.1bn merger deal.

The transaction resulted in the acquisition of SemGroup by Energy Transfer, both based in the US.

Announced in September, the transaction has been unanimously approved by the boards of directors of both the companies.

The joint operations of Energy Transfer and SemGroup are expected to save more than $170m, yielding commercial and operational synergies of $80m, $50m in financial savings, and $40m in cost savings.

With this acquisition, Energy Transfer will also gain access to SemGroup’s Houston Fuel Oil Terminal Company (HFOTCO), a crude oil terminal on the Houston Ship Channel.

HFOTCO has a storage capacity of 18 million barrels of crude oil. It comprises five deepwater ship docks and seven barge docks.

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Energy Transfer is also constructing an approximately 75-mile crude oil pipeline between the Houston Ship Channel and Nederland, Texas, to provide a connection between the company’s Nederland and HFOTCO.

Expected to come online in 2021, the pipeline will have an initial capacity of 500 thousand barrels a day.

Energy Transfer said in a statement: “This acquisition expands Energy Transfer’s pipeline footprint by adding crude oil and NGL gathering systems and transmission lines in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas with connections to crude oil terminals in Cushing, Oklahoma.”

The acquisition will also enable Energy Transfer to expand its natural gas gathering and processing presence in the Alberta Basin in western Canada.