January 26, 2017 [OPIS] - Sprague will add yet another terminal to its East Coast cache of properties this quarter, on the heels of its purchase of the natural gas business of Global and a western Massachusetts storage facility and related logistics from L.E. Belcher.
The company just signed a definitive agreement to buy the storage terminal and associated pier in East Providence, R.I., from Capital Properties for $23 million in cash. The terminal has a combined distillate capacity of over 1 million bbl, and Sprague has leased that storage since May 2014.
Robert H. Eder, chairman of Capital Properties, cited the changing nature of the distillate market in New England in announcing the deal. That change would have required substantial investment to convert a large portion of the tankage to gasoline products, so the company decided to divest the assets instead.
