Arc Logistics to acquire 4 Pennsylvania terminals from Gulf Oil

January 5, 2016

BY Arc Logistics Partners LP

Arc Logistics Partners LP announced that it has entered into an agreement to acquire from Gulf Oil Limited Partnership, following the purchase of Gulf Oil by affiliates of ArcLight Capital Partners LLC, four refined products terminals in Pennsylvania located in Altoona, Mechanicsburg, Dupont and South Williamsport. This acquisition, which will extend the partnership’s operational footprint into the state of Pennsylvania, will be financed with a combination of available cash and borrowings from the partnership’s senior secured revolving credit facility. The acquisition is expected to close in mid-January, subject to customary closing conditions. The sale of the terminals by Gulf Oil has been mandated by the Federal Trade Commission pursuant to its decision and order to resolve certain matters relating to ArcLight’s acquisition of Gulf Oil, which closed on Dec. 29.

The transaction, at closing, is expected to increase the partnership’s total shell capacity by approximately 12 percent, to 7.7 million barrels across 21 terminals. The transaction also provides the partnership with an option to purchase additional land with storage tanks located adjacent to one of the terminals from Gulf Oil for an agreed upon price. At closing, the partnership will enter into a take-or-pay terminal services agreement with Gulf Oil, further expanding the parties’ existing commercial relationship. The throughput and related services to be provided by the partnership to Gulf Oil under the terminal services agreement shall be provided at the terminals, as well as several of the partnership’s other refined petroleum product terminals.

Following closing, Arc Logistics Partners will operate the terminals to support new and existing third-party customers’ activity across the terminals. The terminals include 28 storage tanks with 816,000 barrels of shell capacity and more than 20 acres of land available for development for customer-driven commercial activities. The terminals receive, store and deliver gasoline, distillates, ethanol and biodiesel via pipeline and/or truck connectivity and offer ethanol and biodiesel blending and additive injection services to its customers.

Advertisement

The terminals are expected to allow the partnership to leverage its expanded footprint to capitalize on commercial opportunities with new and existing customers. The terminals are expected to be an important addition to the partnership’s diversified portfolio of logistics assets and will provide opportunities for future growth.

 

Advertisement

Related Stories

Montana Renewables LLC has delivered its first shipment of 7,000 gallons of SAF to Dearborn, Michigan's Buckeye Pipeline facility. From there, the fuel will be transported to the Detroit Metropolitan Airport via pipeline for use by Delta Air Lines.

Read More

Sprague opens renewable diesel retail station in NYC

Article image

By Sprague Operating Resources

January 12, 2024

NYC took a monumental step towards clean air and a sustainable future on Jan. 11 with the grand opening of the city's first retail fuel station dispensing renewable diesel. The project is a collaboration between Sprague and Sonomax.

Read More

The USDA on Jan. 11 awarded $19 million under the Higher Blend Infrastructure Incentive Program. The grants will support projects in 22 states to expand the availability of higher ethanol and biodiesel blends.

Read More

Jet Aviation announced on Dec. 22 that it has signed an agreement with World Fuel Services to secure and offer sustainable aviation fuel (SAF) on-site at its FBOs in Bozeman, Montana, and Scottsdale, Arizona, effective immediately.

Read More

Neste has partnered with Coleman Oil Company, a leading provider of fuels, biofuels, lubricants, and related products, to enable cities and businesses to have easier access to Neste MY Renewable Diesel in the state of Washington in the U.S.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement