WESTVILLE, NJ-Sunoco Logistics Partners L.P. has reached an agreement with part owner Sunoco, Inc. to purchase the Eagle Point tank farm and related assets here for approximately $100 million in deferred distribution units. Sunoco Logistics then plans to spend some $90 million to provide for operational flexibility and to meet regulatory requirements. The deal is expected to close in the third quarter.
The Eagle Point tank farm consists of approximately five million barrels of active storage for clean products and dark oils, with the potential to expand storage capacity in the future. Sunoco Logistics is a publicly traded limited partnership that owns and operates oil pipelines, terminals and storage facilities. Sunoco Inc. owns 31% of Sunoco Logistics.
The sale excludes idled refinery processing units and still-operational 225 megawatt cogeneration facility. Sunoco, Inc. is pursuing the sale of both the processing units and co-generation facility. “Together with our existing pipeline connectivity, dock space, and refined products rack at Eagle Point, the tank farm establishes this location as a major terminal operation on the East Coast with import/export capabilities and room to grow,” said Michael J. Hennigan, president and COO of Philadelphia-based Sunoco Logistics Partners L.P.
“The sale of the Eagle Point storage assets to Sunoco Logistics unlocks value for Sunoco shareholders. At the same time, it demonstrates Sunoco’s commitment as General Partner to supporting the growth of Sunoco Logistics,” said Lynn L. Elsenhans, chairman and CEO of Sunoco, Inc. and Sunoco Logistics Partners L.P. “As the market for transportation fuels continues to evolve, Sunoco Logistics’ ability to aggregate various types of fuel components, provide advanced blending services at the terminal level, and get products to market becomes even more valuable.”
In a separate transaction, Sunoco Logistics will purchase a refined products terminal located in East Boston, Massachusetts from ConocoPhillips for $56 million plus the fair market value of inventory. This transaction, too, is expected to close in the third quarter.
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