PBF Logistics has completed the acquisition of a series of storage assets from CPI Operations.
The assets include a storage facility with four million barrels of multi-use storage capacity and other idled assets on the Delaware River near Paulsboro, New Jersey.
The other assets include an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and other assets. With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities with PBF Logistics’ sponsor PBF Energy.
PBF expects to invest $8.5 million over the next two years in projects to enhance facility capabilities and expects to achieve run-rate EBITDA of $15.5 million at the end of 2020.
Matt Lucey, PBF Logistics executive vice president, says: ‘The ongoing execution of our strategic plan continues to deliver meaningful accretive growth for the partnership. The acquisition of the East Coast Storage Assets also strategically positions the partnership for the upcoming IMP’s low-sulphur fuel specification change in 2020 by adding significant marine-accessible storage assets to our portfolio.
‘The marine facilities are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy high-sulphur refinery feedstocks and increase synergy opportunities with our sponsor, PBF Energy.’