March 10, 2017 [OPIS] - Officials with Global Petroleum acknowledged today that they had engaged an investment bank to garner bids on a package of six terminals that are not part of the company's core business.
OPIS exclusively reported on the sales package earlier this year, and noted that Matrix Capital was handling the sale. Sources say that the first round of bids is due this week.
The terminals are located in Burlington, Vermont; Sandwich, Massachusetts; Macungie, Pennsylvania; Glenwood Landing, New York; and Bridgeport and Wethersfield, Connecticut. Sources say that none of the facilities is regarded as critical to Global’s wholesale business, and it is suspected that the company might dedicate more capital to its lucrative wholesale and retail contracts as well as larger terminals in its system. The sale of the terminals could also help shore up a balance sheet that was nicked by the discontinuation of plenty of rail business from the Bakken to Northeastern refineries.
Approximate storage counts for the terminals are in the 400,000-bbl range for Burlington; 170,000 bbl for Macungie; 184,000 bbl for Wethersfield; and about 100,000 bbl each for Glenwood Landing, Bridgeport and Sandwich. The Burlington facility is supplied by rail, while the other storage terminals receive product via barge or pipeline.
Likely bidders on the properties include niche firms such as Arc Logistics Partners, which bought several facilities that had to be spun off by Gulf Oil when it was acquired by ArcLight. Sprague Resources is also mentioned as a possible bidder, and has actively been acquiring terminals in the region.
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