June 5, 2013 [OPIS] - Capital Terminal Company (CTC), a distillate terminal owner and operator in Providence Harbor, R.I., said on Tuesday that it is looking for new tenants after a breakdown in sale negotiation with Global Companies LLC of Massachusetts.
CTC, which is based in East Providence, R.I., is a wholly owned subsidiary of Capital Properties Inc. (CPI). CTC owns and operates a 1,004,555-bbl distillate storage facility in Providence Harbor that services Rhode Island, Massachusetts and Eastern Connecticut.
This open house at CTC could allow other diesel rack suppliers in Providence to explore new storage options in New England. Besides Global, other diesel rack players in Providence include Gulf, BP, Citgo, Irving, Shell, Sprague, Sunoco, Valero and ExxonMobil.
The Providence storage facility was leased on a long-term lease agreement with Global since September of 1998. That lease expired on April 30, 2013.
CTC has been in negotiations with Global since April 28, 2012 for the purchase of the storage facility under an Option Agreement that existed between both companies.
As of June 4, 2013 the companies were unable to reach an agreement as to the purchase, price and the Option Agreement has been terminated.
Capital Properties Inc. filed Form 8-k with the Security Exchange Commission (SEC) on Tuesday, notifying shareholders of the event.
The distillates storage facility was expanded in 1999 through 2006 from a 300,000 bbl storage facility to 1-million-bbl facility with a new eight-bay, 19-position truck loading rack.
The facility is served via 16-inch diameter pipelines from a deep-water ship/barge berth with a depth of -40 MLW and a LOA of 825′.
The terminal has the capability to develop adjacent rail access for loading and/or unloading of product. The facility is currently vacant while the company is developing a marketing strategy for the future of the facility.
