A newly built terminal in Colorado and a nearby development property has been acquired by Arc Logistics Partners.
The company has purchased all the company interests of UET Midstream from United Energy Trading and Hawkeye Midstream for around $76.6 million (€70 million).
The assets include a substantially completed crude oil terminal, the Pawnee Terminal, and a nearby development property in North Eastern Weld County, Colorado. The terminal is the primary injection point on the North East Colorado Lateral of the Pony Express Pipeline, with services to Cushing, Oklahoma.
It has around 200,000 barrels of commingled storage capacity with room for additional capacity, and is capable of receiving crude oil via truck unloading stations and connections to local crude oil gathering systems. The facility is servicing several third-party contracts with a weighted average contract life of five years.
The development property is being permitted to build a potential new crude injection terminal that would have the ability to provide new and existing customers additional unloading capacity and tankage.
Arc Logistics CEO and chairman Vince Cubbage says: ‘[The facility] was developed to handle the growing crude oil production transportation needs in the region, and its contract portfolio reflects that anticipated growth with built-in increases in customer take-or-pay volume commitments and associated revenues for our partnership.’