August 8, 2011 [OPIS] - Yet another large storage facility with access to the North Atlantic has been put on the sales block. Chevron has confirmed that it is soliciting bids on the purchase of the Perth Amboy, N.J. asphalt plant and tank farm.
The most attractive aspect of the sales package is the 2.5-million bbl of clean products storage on the property with access to tankers and barges, as well as to NYMEX delivery requirements. That storage might be particularly attractive to a North Atlantic trading company or even a European refiner, sources say. Master Limited Partnerships are also likely to be among the bidders. There is additional storage of about 1.5-million bbl for crude oil and heavy ends of the barrel.
The asphalt plant was once operated as a refinery, but it ceased making diesel and gasoline back in 1983. Subsequent to that period, it manufactured asphalt, although it is currently idle. The origins of the refinery, under various owners, date back to 1889. It’s not known whether the site would be suitable for upgrades, or whether its future is solely as a storage depot.
The terminal is the latest waterborne facility to be offered for sale in a busy storage consolidation market. ConocoPhillips sold a huge East Boston facility earlier this year (to Sun Logistics) and reliable sources say that ExxonMobil will formally circulate a package for three northeastern terminals next month. In addition, Motiva is looking to move a Bridgeport, Conn., and a Springfield, Va. terminal.
