Arc Logistics Partners LP announced today that it has completed its previously announced acquisition of four refined products terminals located in Pennsylvania from Gulf Oil Limited Partnership (“Gulf Oil”) for a purchase price of $8,000,000. The partnership’s acquisition of the terminals follows a decision and order issued by the Federal Trade Commission requiring an affiliate of ArcLight Capital Partners, LLC (together with ArcLight Capital Partners, LLC, “ArcLight”) to sell the Terminals, following ArcLight’s acquisition of Gulf Oil on Dec. 29, 2015.
The acquisition of the terminals extends Arc Logistics’ independent service platform into Pennsylvania, offering continued third-party access to the Altoona, Mechanicsburg, Dupont and South Williamsport markets. The terminals are capable of receiving, storing and delivering gasoline, distillates, ethanol and biodiesel via pipe and truck connectivity. The partnership plans to invest incremental capital in the terminals to modernize the infrastructure, upgrade the tankage and capabilities of the terminals and enhance the renewable fuel capabilities. In total, the terminals’ assets include 28 storage tanks with 816,000 barrels of shell capacity, increasing the partnership’s total shell capacity to 7.7 million barrels across twenty-one terminals.
As part of this acquisition, Gulf Oil and the partnership have entered into a take-or-pay terminal services agreement, pursuant to which the partnership will provide Gulf Oil with continued commercial access to the Terminals, as well as several of the Partnership’s other refined petroleum product terminals.
Arc Logistics is a fee-based, growth-oriented limited partnership that owns, operates, develops and acquires a diversified portfolio of complementary energy logistics assets. Arc Logistics is principally engaged in the terminalling, storage, throughput and transloading of crude oil and petroleum products. For more information, please visit www.arcxlp.com.