Arc Logistics Partners is set to acquire four Gulf Oil refined products terminals in Pennsylvania.
The announcement follows the purchase of Gulf Oil by affiliates of ArcLight Capital Partners. The facilities are located in Altoona, Mechanicsburg, Dupont and South Williamsport, all in Pennsylvania.
The acquisition, which is expected to close in mid-January 2016, will extend the partnership’s operational footprint in the state.
Once closed, the move will increase Arc’s total shell capacity by around 12% to 7.7 million barrels across 21 terminals.
Additionally, the transaction also provides the partnership with an option to purchase additional land with storage tank 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. Throughput and related services to be provided by Arc 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.
The facilities comprise 28 storage tanks with 816,000 barrels of shell capacity and more than 20 acres of land available for development. The terminals receive, store and deliver petroleum, distillates, ethanol and biodiesel and offer ethanol and biodiesel blending and additive injection services to customers.
In a statement, Arc says: ‘The terminals are expected to allow the partnership to leverage its expanded footprint to capitalise 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.’