IMTT at Bayonne is a strategic oil products storage facility in the New York Harbor. It has 620 tanks, 16 million barrels total capacity ranging in size from 5,000 gal through 250,000 bbl. IMTT, which is 100% owned by MIC, owned and operates 10 terminals in the U.S. and is part owner and operator of two terminals in Canada.

MIC has completed the $720 million acquisition of Bayonne Energy Center (BEC), which is located next to IMTT, and BEC will offer MIC an opportunity to expand power generation capacity at that Bayonne location as well as supply power to IMTT. IMTT could store fuel oil as a backup fuel for the gas-fired power plant.

Also, MIC completed the acquisition of the land beneath its BEC gas-fired power generation facility in Bayonne, N.J., from Hess Corporation on Dec. 30, 2015. The purchase includes a buyout of the remainder of the 55-year lease assumed by MIC as a part of the acquisition of the BEC in April of 2015. The land acquisition provides MIC with additional security associated with having a perpetual interest in the property beneath the plant as well as the financial benefit of avoided lease payments.

BEC is situated on 7.9 acres along approximately 290 feet of frontage on the Kill Van Kull in Bayonne, N.J.

The additional water frontage is expected to benefit MIC’s adjacent IMTT marine terminals business and its operations on the Bayonne peninsula to the extent that it enables IMTT to expand its docks at the facility, MIC said.

Also related to BEC, MIC has signed an agreement to construct an interconnection with the Spectra Energy-owned Texas Eastern Transmission LP (TETLP) natural gas pipeline. The existing TETLP pipeline runs beneath the western portion of the property owned by IMTT in Bayonne. The interconnection will allow for the construction of an approximately 7,000-foot-long pipeline across IMTT land that is expected to provide BEC with additional access to affordable natural gas and facilitates the development of gas-using businesses.

MIC said that its Hawaii Gas business has signed a purchase and sale agreement and received regulatory approval for the acquisition of the land beneath its synthetic natural gas plant at Campbell Industrial Park on Oahu from BHP. The Decision and Order from the Hawaii Public Utilities Commission allowing the transaction to proceed was received on Dec. 30, 2015.

As with BEC, by owning the land beneath its plant, Hawaii Gas has achieved both additional security with regard to existing operations and avoided potential future lease rate increases. The company has signed additional agreements that will see it continue to invest in clean energy projects in Hawaii including in non-utility customer services and initiatives related to renewable natural gas.

Approximately $50 million of the announced capital deployment involves the expansion of MIC’s Atlantic Aviation business, the owner of one of the largest U.S. networks of fixed base operations (FBO) serving the general aviation industry.

MIC is managed by a wholly owned subsidiary of the Macquarie Group.