December 31, 2015 [OPIS] - Arc Logistics today confirmed that it is indeed purchasing four former Gulf Oil terminals in Pennsylvania that were required to be sold off in order for ArcLight Capital to get approval for its deal to buy most of the Gulf Oil assets.
Arc Logistics and ArcLight share similar names, but they are not affiliated companies. The former trades on the New York Stock Exchange, while the latter is a private equity group that could one day bundle the Gulf Oil assets as well as the former assets of Petroleum Products Corp (PPC). PPC was acquired by ArcLight last spring.
The terminals include facilities in Altoona, Mechanicsburg, Dupont and South Williamsport, Pa., and have aggregate storage of 816,000 bbl. The deal, financed by available cash and borrowings from Arc Logistics’ secured credit line, should close in mid-January.
It will give Arc Logistics its first facilities in Pennsylvania and increase total terminaling capacity for the company by 12% to 7.7 million barrels across 21 terminals. Arc Logistics also has an option to purchase additional land with storage tanks adjacent to one of the facilities. Arc Logistics will enter into take-or-pay terminal services agreements with Gulf after closing, for the acquired facilities as well as other locations in the Gulf system. Arc Logistics will also operate the terminals with new and existing third-party customers.
