PBF LogisticsLP's subsidiary has completed the of four refined productterminals from an affiliate of PlainsAll American Pipeline LP for a cash consideration of about $100million.
The Philadelphia terminals serve as a link to the roughly1.3 million barrels per day of refining capacity located within 100 miles ofthe terminals and related downstream demand. PBF Logistics saidthe acquisition represents a 100% increase in the partnership's total storagecapacity and the diversification of its customer and asset base, according to an April 29 news release.
The assets acquired include 57 product tanks with a totalshell capacity of about 4.2 million shell barrels, connections from a number ofpipeline systems, including those that belong to and , 26truck loading lanes, and marine facilities.
In conjunction with the acquisition, the partnership intendsto invest about $5 million, from cash on hand, to improve infrastructure to increasethe terminals' throughput capability.
PBF Logistics anticipates the terminals to generate about$15 million of pro forma EBITDA in 2017. Upon the completion of the initialcapital investments, the partnership said it expects an annual run-rate EBITDAof about $10 million.