Colonial Terminals Operating Company, a subsidiary of Colonial Enterprises, is to buy three refined product terminals in the southeast of the US from Lincoln Terminal Company.
The three terminals are located in Fredericksburg in Virginia, Charlotte in North Carolina, and Chattanooga in Tennessee. Colonial Enterprises operates largely in the pipeline industry, connecting Gulf Coast refineries with customers and markers in the south and east of the US, via a pipe network spanning more than 8,800 km. It says the acquisition is an ‘excellent opportunity’ to move into the terminal business and offer complementary services, as a ‘natural extension’ of its existing business. The Charlotte and Chattanooga terminals are already connected to Colonial pipelines.
The Fredericksburg terminal, the largest of the three, has a capacity pf 225,000 bbl and currently stores gasoline, diesel, biodiesel, ethanol and butane. The Charlotte terminal has a capacity of 125,000 barrels and stores gasoline, diesel, biodiesel and ethanol. The Chattanooga terminal has a capacity of 175,000 bbl and stores gasoline, diesel, biodiesel, ethanol, butane and kerosene.
The transaction is expected to be completed in around 90 days.