GE, Arc Logistics to acquire Joliet Terminal

GE Energy Financial Services and Arc Logistics have agreed to pay $216m to CenterPoint Properties Trust for a crude oil unloading terminal and pipeline.

GE Energy Financial Services, the energy investment arm of General Electric, and master limited partnership Arc Logistics will acquire Joliet Terminal, a facility comprising a crude oil unloading terminal and four-mile crude oil pipeline that is under construction in Joliet, Illinois.

The two companies have formed a joint venture to acquire all of the membership interests of Joliet Bulk, Barge & Rail (JBBR), owner of Joliet Terminal, from CenterPoint Properties Trust, for $216 million.

At closing – which is expected once Joliet Terminal begins commercial operations in mid to late April – Arc Light will manage ongoing operations and own a 60 percent interest in the JBBR joint venture company. GE Energy Financial Services will own the remaining 40 percent.

Once complete, the terminal will have the capacity to unload approximately 85,000 barrels of crude oil per day and the capacity to store about 300,000 barrels. The four-mile pipeline will connect to a common carrier crude oil pipeline and the facility will have rail and marine access as well as more than 80 acres for future expansion.

“The JBBR acquisition continues the Partnership’s [Arc Logistics] existing business strategy to expand its market position and support the expansion plans of new and existing customers, while generating stable cash flow for its unit holders from quality assets supported by long-term contracts,” Arc Logistics said in a statement.

The Joliet Terminal will be supported by a terminal services agreement as well as throughput and deficiency agreement with a major oil company, Arc Logistics said, each with a term of three years based on minimum throughput and volume commitments.

Headquartered in New York, Arc Logistics is a fee-based, growth-oriented limited partnership that owns, operates, develops and acquires energy logistics assets. It is primarily engaged in the terminalling, storage, throughput and transloading of crude oil and petroleum products.

Based in Stamford, Connecticut, GE Energy Financial Services provides lending for capital-intensive power, oil and gas infrastructure and holds approximately $16 billion in assets.