Colonial Pipeline Co. reported Wednesday that it plans to expand into the terminal business by acquiring three refined products terminals in the Southeastern U.S.
In a written statement emailed to Rigzone, Colonial stated that Colonial Terminals Operating Co. LLC – a unit of affiliate company Colonial Enterprises, Inc. – has entered into an agreement to purchase terminals in Charlotte, N.C., Chattanooga, Tenn., and Fredericksburg, Va., from Lincoln Terminal Co., Inc. According to Lincoln’s website, the three terminals boast 525,000 barrels of tank capacity.
Colonial pointed out the Charlotte and Chattanooga terminals are linked to the Colonial Pipeline system. The system spans more than 5,500 miles (8,851 kilometers), linking Gulf Coast refineries to markets throughout the Eastern U.S.
Colonial stated the acquisition offers the company an “excellent opportunity” to enter the terminal business. It contends the move will allow it to offer a complementary service to the markets, including Colonial Pipeline customers. Moreover, it stated the company is laying the groundwork for further strategic expansion.
“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 firm stated.
According to Colonial, the acquisition will likely conclude in three months.
To contact the author, email mveazey@rigzone.com.
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