NuStar Energy L.P. has announced that it has acquired full ownership of a refined products terminal in Linden, New Jersey, which is located in the New York Harbour.
The terminal was previously operated as a joint venture with Linden Holding Corp, and NuStar had 50 percent ownership of the facility.
NuStar purchased the remaining ownership interest from Linden Holding Corp, a subsidiary of NIC Holding Corp, for $142.5 million, and the acquisition is projected to contribute approximately $20 million of incremental earnings before interest, taxes, depreciation and amortization (EBITDA) in 2015.
"I am very pleased that we are starting 2015 with a strategic acquisition that will contribute significantly to our earnings this year and in the years to come," said NuStar President and CEO
Brad Barron. "Having sole ownership of the terminal further strengthens our presence in the New York Harbor and the East Coast market, and it may provide opportunities for expansion as well."
Barron also noted that the acquisition will give NuStar the opportunity to take advantage of synergies between the Linden terminal and the Linden NuTop terminal, which was already wholly owned by NuStar. "The terminals are located adjacent to each other, so NuStar can achieve greater efficiency and economies of scale in owning both of them outright," NuStar said in a statement.
The Linden terminal has 4.3 million barrels of refined products storage capacity, primarily storing fuel oil, gasoline, jet fuel. It has a deepwater ship dock and one barge dock that are used for inbound and outbound shipments. The terminal also has inbound pipeline connections to the Colonial and Sun pipelines, and an outbound connection to the Buckeye Pipeline.
The NuTop terminal has 389,000 barrels of refined product storage capacity and receives shipments via truck and pipeline, and delivers product via its eight-bay truck loading rack.
