June 20, 2011 [OPIS] - Rapidly expanding independent terminal owner, Arc Terminals LP, will fully commission its 850,000-bbl capacity Blakeley terminal in Mobile, Ala., on July 1, John Blanchard, the company's president told OPIS.
About 80,000 bbl of that terminal capacity is currently operational, and the remaining 770,000-bbl capacity will be ready next month. Arc is operating these facilities as a third party.
The Blakeley terminal will store crude, fuel oil, bunker fuel and asphalt. The terminal will have truck and marine access.
The dirty products supplies to Mobile are expected to be sourced from the Gulf Coast. The acquisition of Blakeley terminal was part of Arc’s $40.5 million purchase of two storage terminals in Mobile last year. Arc pledged an extra $17 million investment for asset improvement at Mobile.
In the acquisition of bankrupt Dunhill Terminals LP, Arc forgave $40 million in debt and paid $500,000 in cash. In return, Arc takes over a total of 1.5 million bbl in products storage capacity at two terminals in Mobile. The operational Chickasaw terminal has 650,000-bbl capacity, while Blakeley terminal has 850,000 bbl.
“Arc has been successful in leasing operational tankage that was vacant when Arc acquired the assets,” Blanchard told OPIS last year. The capacity at Mobile is not entirely leased and Arc is pursuing third parties to enter into storage/throughput agreements at the facilities for the remaining space. Arc is continuing to pursue additional acquisition opportunities in order to broaden its network of terminal assets, Blanchard said.
Arc has 10 terminals totaling about 3.6 million bbl in storage capacity in eight states, including North and South Carolinas, Ohio, Alabama, Virginia, Wisconsin, Illinois and Maryland. Arc Terminals GP LLC is the general partner of Arc Terminals LP, and is a wholly owned subsidiary of Lightfoot Capital Partners LP.
