December 3, 2014 [OPIS] - In its second dropdown acquisition this year, PBF Logistics LP (PBFX) is buying Tank Farm #2 at PBF Energy's refining subsidiary in Toledo, Ohio, for $150 million, the company said Tuesday.
The purchase price of the asset, also known as the Toledo Storage Facility, payable to PBF Energy will consist of $135 million in cash and PBFX limited partner interests of $15 million. The transaction is expected to close on or about Dec. 12.
The financial consideration for PBF Logistics’ latest acquisition is identical to its first — the Delaware City Heavy Crude Unloading Rack (West Rack) — announced in mid-September.
The Toledo Storage Facility consists of about 3.9 million bbl of feedstock and product storage capacity and related facilities, including a propane storage and loading facility.
Upon closing, PBF Logistics will begin a 10-year term storage and terminaling services agreement with subsidiaries of PBF Energy (such as Toledo Refining) containing storage fees and a minimum throughput volume commitment of 4,400 b/d at the propane storage and loading facility.
The Toledo tank farm asset is seen contributing about $15.1 million of EBITDA in its first full year of operation after the close.
PBF Logistics’ other assets consist of a light crude oil rail unloading terminal at the Delaware City refinery and a crude oil truck unloading terminal at the Toledo refinery.
The logistics subsidiary currently receives, handles and transfers crude oil from sources throughout North America in support of PBF Energy’s three refining subsidiaries in Delaware, Ohio and New Jersey (Paulsboro).
The majority of the Toledo refinery’s WTI-based crude is delivered through pipelines that originate in both Canada and the U.S., according to PBF Energy. In the three years that PBF has owned the plant (175,000 bbl per stream day capacity), the company has added truck and rail crude unloading capability to provide feedstock sourcing flexibility and to allow Toledo to process a more cost-advantaged crude slate.
