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Massachusetts-based Global Partners LP has completed its $212.3 million acquisition of four liquid energy terminals from Gulf Oil Limited Partnership.
The terminals are strategically located in Chelsea, Massachusetts; New Haven, Connecticut; and Linden and Woodbury, New Jersey. The assets “will further enhance Global’s position in the energy economy of the Northeast,” the partnership said in a news release Tuesday.
With a combined shell capacity of approximately 3.0 million barrels, the terminals expand Global’s ability to store and distribute gasoline, distillates, and ethanol, it said. The partnership noted that the acquisition aligns with its strategy to acquire and invest in assets that allow it to “leverage scale from its integrated network in high demand markets”.
Global said the Linden and Woodbury terminals open new markets, while the New Haven terminal adds gasoline capabilities to its terminal portfolio in Connecticut. Meanwhile, the Chelsea terminal allows it to continue to serve the Boston market as it replaces the capabilities of its Revere terminal, which it divested for $150 million in 2022.
“This acquisition further delivers on our commitment to strategic growth and our ability to identify and capitalize on assets that leverage our growing network,” Global President and CEO Eric Slifka said.
“We are happy to finalize this acquisition and welcome these terminals into our growing network. These assets will strengthen our existing operations and provide us with new opportunities to serve our customers and enhance our competitive advantage,” Slifka added.
Motiva Acquisition Completion
This is the second acquisition that Global has completed in recent months. In December 2023, the partnership closed its acquisition of 25 liquid energy terminals from Motiva Enterprises LLC.
The transaction is underpinned by a 25-year take-or-pay throughput agreement with Motiva, the anchor tenant at the terminals, that includes minimum annual revenue commitments, according to an earlier news release.
“This acquisition nearly doubles our operating footprint, giving Global a significant position from Maine to Florida and into the Gulf Coast,” Slifka noted. “The addition of these terminals supports the growth of our integrated supply, storage and retail network in rapidly growing areas of the country—Florida, Georgia, Texas and the Carolinas—providing customers with gasoline, diesel and other liquid fuels essential to their daily lives”.
Global now owns or leases 49 liquid energy terminals in the USA, totaling approximately 18.3 million barrels in shell capacity. The new assets expand access to a critical network of marine loading facilities as well as the Colonial, Plantation, Enterprise, Explorer and Magellan refined product pipelines, according to the release.
Slifka continued, “This purchase marks a significant milestone in Global’s 90-year history and highlights our strategy to acquire and invest in assets where we can leverage our core strengths. We look forward to broadening our network for existing customers and serving new customers with our high level [of] personal service and reliability”.
“With the divestiture of our product terminals, we will increase our focus on growing our core manufacturing and logistics centered around Port Arthur Manufacturing Complex while continuing to strengthen and grow our marketing channels”, Motiva President and CEO Jeff Rinker said in an earlier statement. “I’m excited about entering this long-term partnership with Global Partners and believe the relationship with such an outstanding terminal operator will be positive for our customers and support [the] growth of our marketing business”.
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