June 20, 2014 [OPIS] - World Point Terminals LP, a Delaware limited partnership, said that it has acquired two terminals in Mobile, Ala., that will have a total shell capacity of 1.826 million bbl once necessary repairs and upgrades are made to the tanks.
World Point Terminals did not identify the seller of the terminals, but industry sources told OPIS that NuStar Energy was at the other end of that transaction.
NuStar bought those two terminals for $44.1 million in 2010 from Denham Capital Management. Both terminals were previously known as Gulf Atlantic. There was a small asphalt refinery at the Chickasaw location.
The St. Louis-based World Point Terminals will pay approximately $14 million in cash for the acquisition.
The Blakeley Island terminal has a total storage capacity of 1.182 million bbl for the storage of crude oil, distillates and residual fuels.
The terminal is currently served by ship and barge with the ability to add truck access. None of the tankage is currently under contract.
The Chickasaw terminal has a total storage capacity of 644,000 bbl for the storage of asphalt, crude oil and residual fuels. The terminal is served by ship, barge, truck and rail. Approximately 450,000 bbl is currently under contract.
The partnership expects to incur between $8 and $12 million in capital expenditures, including the purchase of land that is currently leased, to return both terminals to full operational capacity.
While these assets will not immediately have a significant impact on EBITDA or distributable cash flow of the partnership, they provide a 14% increase in its available storage capacity and significant growth potential for our unitholders.
World Point Terminals LP is a master limited partnership that owns, operates, develops and acquires terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil.
The partnership’s storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the United States.
