December 27, 2011 [OPIS] - A subsidiary of Blackwater Midstream Corporation has closed on its purchase of a Chesapeake Bay terminal in Maryland. The $1.6-million deal was consummated on December 22, and gives Blackwater Midstream 177,000 bbl of light products tankage on 26 acres of the Wicomico River.
The terminal, previously owned and operated by NuStar, is accessible by barge and transport truck, and an additional 100,000 bbl of space is available for possible expansion.
Blackwater Midstream is an independent operator of bulk liquid storage terminals, and first burst on the scene in 2008 when it bought storage facilities in the Port of New Orleans. It subsequently added terminaling in Brunswick, Georgia.Those terminals are primarily used for heavy oil, agricultural, and petrochemical commodities.
The NuStar deal closed on December 22. The Salisbury, Maryland terminal boasts 177,000 barrels of storage on twenty six acres on the Wicomico River and is accessible by barge and transport truck. An additional 100,000 bbl of space is available for more tankage at the site.
Publicly held Blackwater is run by executives who ran Delta Terminal Services some 16 years ago, and top managers also spent time with Kinder Morgan after Kinder Morgan bought Delta in 1995.
Frank Marrocco, Chief Commercial Officer of Blackwater Midstream called the Salisbury terminal a key component in the Delmarva region’s petroleum supply chain. He noted that the company would retain petroleum handling capabilities, but was in talks with potential customers who might be interested in storing non-petroleum products.
