Blackstone Affiliate Enters Agreement To Pay $150M For Boston Harbor Oil And Gas Terminal
A Blackstone company has entered an agreement to purchase an oil and gas terminal in Revere for $150M in a sale-leaseback transaction, potentially giving the firm a prominent Boston Harbor port.
Revere Terminal owner Global Partners LP entered the purchase and sale agreement with Revere MA Owner LLC, a company tied to Link Logistics Real Estate, last month, according to a Securities and Exchange Commission filing. Global Partners would lease back infrastructure including tanks, dock access rights, and loading rack infrastructure.
The deal is expected to close in the first half of 2022, according to the SEC filing. A Global Partners representative declined to comment Thursday morning, and Link Logistics didn’t respond to a request for comment.
The Revere Terminal, along the Chelsea Creek and part of the Boston Harbor, can store up to 2.1 million barrels of refined petroleum products, includes 17 truck bays, and is supplied by barges that pass under the Chelsea Street vertical lift bridge.
Link Logistics would add the terminal to its massive 440M SF portfolio and its $8.2B in acquisitions this year, according to its Q3 update last week. An industrial giant, the company focuses on last-mile locations and other logistics facilities and recently spent a combined $329M on Massachusetts warehouses.
Waltham-based Global Partners counts at least six waterfront terminals in New England among its portfolio of 26 terminals and 1,600 third-party gas stations and other providers spanning across 26 states. It sells approximately 359,000 barrels of product daily. The firm caused a local ruckus around the terminal in 2013 when it planned to ship ethanol by rail to Revere, a plan it withdrew after opposition from residents and officials in Cambridge, Somerville and Boston.
The petroleum business is seeing improved demand for its operations despite a significant increase in wholesale fuel prices in the past 12 months, Global Partners CEO and President Eric Slifka said in a September statement related to the firm’s Q3 report.
“Like other businesses, we encountered spot supply chain disruptions and labor shortages,” Slifka said. “We were able to mitigate these issues where possible, minimizing impacts, and our third-quarter results were strong.”
Today, the oil market is encountering swings in response to the omicron variant of the coronavirus, and as the U.S. and other non-OPEC countries are preparing to release tens of millions of oil from their stockpiles in response to elevated gas prices, The New York Times reports.
CORRECTION, DEC. 3, 10:40 A.M. ET: A previous version of this story incorrectly described the transaction as closed, instead of under agreement. The story and headline have been updated.