August 8, 2014 [OPIS] - The Battleground Oil Specialty Terminal Terminal Company (BOSTCO) is expected to start commercial operations for its new 900,000 bbl ultra low-sulfur diesel tanks in the latter half of the third quarter in 2014, TransMontaigne Partners said on Thursday.
TransMontaigne owns a 42.5% stake in BOSTCO terminal, with Kinder Morgan holding the majority share in the mostly fuel oil and black oil tank storage facility. BOSTCO terminal on the Houston Ship Channel began first commercial operations in October 2013.
This will be the first time BOSTCO terminal is handling clean products.
Work on the ULSD storage tank expansion started in the second quarter of 2013 is nearing completion, TransMontaigne said.
As of the beginning of August 2014, all 51 of the initial phase storage tanks have been placed into service and are earning revenue, the company said. The TransMontaigne is still working on identifying new tenants to pick up expiring terminaling and storage contracts held by Morgan Stanley in Florida and Mississippi.
However, the company is unsure if it will be successful in its re-contracting efforts.
Morgan Stanley’s bunker fuel storage contract at Port Manatee, Fla., and Cape Canaveral terminals ended on May 31, 2014, and its contract at Collins/Purvis terminal in Mississippi will expire on Dec. 31, 2015.
On Feb. 12, 2014, TransMontaigne entered into a two year terminaling services agreement with Chemoil Corporation for all of the bunker fuel storage capacity at its Port Everglades North, Florida and Fisher Island, Florida terminals.
The agreement provides Chemoil the option to extend for an additional three years.
The agreement replaced Morgan Stanley Capital Group as the bunker fuels customer at these two terminals effective June 1, 2014.
Meanwhile, TransMontaigne reported second quarter net earnings of $10.840 million, up from $8.224 million a year ago.
Effective July 1, 2014, Morgan Stanley consummated the sale of its 100% ownership interest in TransMontaigne Inc. to NGL Energy Partners LP.
