Sunoco Logistics Partners L.P., the pipeline and terminal subsidiary of fuel company Sunoco, Inc., has announced it's buying the tank farm at Eagle Point from its parent company, with room for about 5 million barrels of storage, for $100 million.
Not included in the deal were the the refinery complex, which was permanently idled in February 2010, and the still-operational 225-megawatt cogeneration facility at Eagle Point. Those two facilities, along with several small Sunoco-owned properties around the complex, are still for sale.
“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 chief operating officer of Sunoco Logistics Partners L.P.
In addition to the $100 million Sunoco Logistics is spending to buy the tank farm at Eagle Point, the company said it also expects to sink an additional $90 million into the property to give it flexibility in operating the tank farm, as well as to meet regulatory requirements.
Currently, the Eagle Point tank farm stores clean refined products and dark oils, with the potential of expanding capacity beyond its current five million barrels.
Besides the Eagle Point deal, Sunoco Logistics is also spending $56 million, plus the market value of inventory, to buy another 1.2 million barrels of storage from ConocoPhillips at a terminal in East Boston, MA.
Both deals are expected to close later this year.
Sunoco Logistics, which is a separately-traded company from Sunoco, Inc., is headquartered in Philadelphia, and owns and operates about 2,500 miles of refined products pipeline and a total of 34 million barrels of crude and refined terminal storage in the United States.