The offer is for 244,000 bbl of capacity to store gasoline or diesel and another 162,000 bbl of capacity for distillates.
In addition, Hess is offering 320,000 bbl of capacity for distillates storage at Roseton, N.Y., terminal and another 100,000-200,000 bbl of storage at Groton, Conn.
Hess offers storage space in the market on a regular basis when the current tank leases are about to expire.
The current tenants could be negotiating with Hess for a renewal, and Hess’s offer in the market could also be used as a leverage against the current tenant.
The current tank lease rate in the Northeast is about $1.00-1.20/bbl, based on one-year term deals closed earlier this year.