Colonial Pipeline, the largest US refined products pipeline, has agreed to buy three refined product terminals from Lincoln Terminal Company, increasing its southeastern US terminal footprint by 525,000 barrels of storage.
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"This acquisition provides an excellent opportunity for Colonial to move into the terminal business, offering a complementary service to the markets, including Colonial Pipeline Company's customers, and lays the groundwork for further strategic expansion," said Colonial Pipeline in a statement released late July 1.
"Terminals are a natural extension of Colonial's overall business, providing the opportunity to serve customers in new ways while building and strengthening relationships," the statement said.
Two of the three product terminals area located in Charlotte, North Carolina, and Chattanooga, Tennessee, are already connected to Colonial's pipeline system, the statement said.
The third is located in Fredericksburg, Virginia, and has storage capacity for 225,000 barrels of gasoline, biodiesel, diesel, ethanol and butane, according to the Lincoln Energy Solutions website.
The Charlotte terminal has 125,000 barrels of storage capacity for gasoline, diesel, biodiesel and ethanol. The Chattanooga terminal has 175,000 barrels of storage for gasoline, diesel, biodiesel, ethanol, butane and kerosene, the website said.
The deal is expected to close in 90 days, Colonial's statement said. It did not give a price for the deal.