September 17, 2013 [OPIS] - Capital Terminal Company (CTC) of East Providence, R.I., a wholly owned subsidiary of Capital Properties Inc. (CPI) said on Monday that it has entered into a lease agreement with a distillate supplier for a portion of its 1-million-bbl storage facility in East Providence, and related deep-water pier facilities for distribution to the region.
The term for the new lease began on Sept. 1, 2013. OPIS reported last week that French-based multinational Total was on tap for a busy autumn.
In concert with Saudi Aramco, the company just opened a spanking new 400,000-bbl state-of-the-art Jubail refinery on the coast of the Persian Gulf, and Total was about to ink at least one product throughput arrangement with East Providence-based Capital Terminal Company.
CTC has been looking for tenants since a long-term lease expired with Global Companies earlier this year.
CTC did not identify the tenant on Monday. In addition to the new lease agreement, CTC has entered into a Terminal Access Agreement with Inland Fuel Terminals, from Bridgeport, Conn., which will be a wholesale marketer for the new tenant.
The storage terminal has already begun receiving product, and distribution through its truck rack is anticipated to commence within several days.
“CTC is continuing to look for additional tenants for the terminal,” Todd Turcotte, president of CTC, told OPIS on Monday, adding that there is still significant storage capacity available at the Providence facility.
He also said that CTC would consider converting some storage tanks at the distillates-only terminal to store gasoline if there is a demand for it.
Market sources told OPIS that Total has signed on for a term storage lease at the New England terminal for eight months, with options to renew.
Total is not seen as a major distillates player in the New England market, and this storage and throughput agreement at Providence would represent the company’s foray into that Northeast market.
CTC’s terminal includes a 1-million-bbl capacity facility with a new eight-bay, 19-position truck loading rack.
The facility is served via 16-inch diameter pipelines from a deep-water ship/barge berth. The terminal has the capability to develop adjacent rail access for loading and/or unloading of product.
