By OGJ editors
HOUSTON, Mar. 20 -- Global Partners LP, an oil and gas wholesale distributor, has agreed to buy three products terminals from ExxonMobil Corp. for $101.5 million. The agreement includes a 5-year throughput contract.
The terminals to be acquired are in New York and Vermont and have a combined storage capacity of 1.3 million bbl of petroleum fuels, which increases Global's storage capacity by 19% to 8.1 million bbl.
The properties include the Albany, NY, terminal, which has active storage capacity of 738,000 bbl and is supplied by ship, barge, and rail.
Global also will seek permits to bring the facility's 683,000 bbl of idle storage capacity back into service. Petroleum products distributed from this terminal include gasoline, ultralow-sulfur diesel (ULSD), heating oil, and ultralow-sulfur kerosine (ULSK). The facility includes a petroleum contact water treatment plant, a deepwater dock, blending opportunities, and real estate expansion potential.
Also included is the Newburgh, NY, terminal, with 403,000 bbl of active storage capacity for products including gasoline, ULSD, heating oil, and ethanol. This facility is supplied by barge and truck.
The third facility is the Burlington, Vt., terminal, which has an active storage capacity of 153,000 bbl and is supplied by rail. Global expects to bring several idle tanks, totaling an additional 93,000 bbl at this facility, back into service. Product distributed from this terminal includes gasoline, ULSD, heating oil, and ULSK.
"The Burlington terminal is the only large gasoline storage and distribution facility in Vermont," Global Pres. and Chief Executive Eric Slifka said.
Global expects to finance the acquisition through an existing credit facility and the sale of over $50 million worth of stock. The transaction is expected to close in the second quarter, pending regulatory approval and other customary conditions.
