NuStar Energy LP (NYSE: NS) said Jan. 9 that it has acquired full ownership of a refined products terminal in Linden, N.J., which is located in the New York Harbor.
NuStar, based in San Antonio, had 50% ownership of the facility. NuStar purchased the remaining ownership interest from Linden Holding Corp., a subsidiary of NIC Holding Corp., for $142.5 million.
NuStar owns 82 terminals and has been active in South Texas in the Eagle Ford Shale. In 2012, the company acquired five storage terminals and 140 miles of crude transmission and gathering lines in the Eagle Ford for about $325 million. The company has reactivated, reversed and constructed new pipelines to serve the area.
The Linden acquisition is projected to contribute about $20 million of incremental EBITDA in 2015. The terminal was previously operated as a joint venture with Linden.
The deal should give NuStar greater efficiency between the terminal and the Linden NuTop terminal the company already owns, said Brad Barron, NuStar president and CEO, in a statement.
The Linden terminal’s storage capacity of 4.3 million barrels holds refined products such as gasoline, jet fuel and fuel oils. 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.
The terminals are located adjacent to each other, Barron said.
“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,” he said. “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.”
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