However, an ongoing arbitration case on a terminal lease dispute at Gulf LNG Holdings Group could affect Arc Logistics’ business, financial conditions, results of operations and its ability to make cash distributions to unitholders would be materially adversely affected, the company said. However, Arc Logistics and Kinder Morgan, owners of Gulf LNG, said that Eni USA Gas Marketing’s complaint was without merit.

Eni USA seeks declaratory and monetary relief in respect of its terminal use agreement, asserting that the changes in the U.S. natural gas market since the execution of the terminal use agreement in December 2007 have “frustrated the essential purpose” of the terminal use agreement and the activities undertaken by affiliates of Gulf LNG Holdings “in connection with a plan to convert the LNG Facility into a liquefaction/export facility have given rise to a contractual right on the part of Eni USA to terminate” the terminal use agreement.

Arc Logistics’ adjusted EBITDA was $13.2 million for the fourth quarter of 2015, as compared to $7.4 million for the same period in 2014, which represents a year-over-year increase of 79%.

Adjusted EBITDA was $44.1 million for the year ended Dec. 31, 2015, compared to $30.2 million for the same period in 2014, which is a year-over-year increase of 46%.

For the fourth quarter 2015, Arc Logistics generated net income of $3.9 million, which represents an $8.9 million increase from the fourth quarter of 2014. For the year ended Dec. 31, 2015, it generated net income of $10.7 million, which represents a $9.5 million increase from the year ended Dec. 31, 2014, of $1.3 million.

Arc Logistics started 2015 with 15 facilities in 10 states totaling approximately 6.4 million bbl of storage, and it now has 21 facilities in 12 states totaling over 7.7 million bbl of storage, including the Pennsylvania terminals that it acquired in January 2016.

Among the 2016 expansion plans, Arc Logistics will upgrade and modernize its four Pennsylvania terminaling assets that it purchased from Gulf Oil in January.

These projects will be focused on inspecting and repairing tanks, placing tanks into service, enhancing the truck rack to the each of the assets and installing biodiesel blending systems at three of the assets.

These terminals — at Altoona, Mechanicsburg, Dupont and South Williamsport — have a total storage capacity of about 860,000 bbl. The tank utilization is about 25%, with plenty of room to grow after upgrading.

In the fourth quarter, Arc Logistics began the Brooklyn tank realignment project to optimize throughput capacity.

Earlier in the year, it upgraded and returned to service 210,000 bbl of storage at its Portland terminal, and the company also completed the Madison tank and truck rack upgrades.

Arc Logistics is also working to enhance the products capabilities and terminal efficiencies at its Joliet and Pawnee terminals. Both of these facilities were acquired earlier in the year.

At the Joliet terminal, Arc Logistics initiated in the fourth quarter a project to add heat capabilities to allow for the rail delivery of pure bitumen. This project is to be completed by the end of the first quarter of 2016.

In addition, the company completed the installation of five additional truck lanes at its Pawnee terminal in the fourth quarter 2015. This upgrade has allowed for increased crude oil volumes to be delivered into the terminal and at the same time has reduced truck waiting times.

One of the largest projects targeted for 2016 is the construction of a third 100,000-bbl tank at its Pawnee terminal and an additional four smaller tanks. These projects are expected to be completed in the latter half of 2016.

However, the timing of the marine infrastructure project in Chickasaw was delayed during the fourth quarter 2015. As a result, the company anticipates an increase in maintenance capital expenditures over the first three quarters of 2016 to be approximately $1 million per quarter over its historical average of $750,000 per quarter.