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January, 2013
Houston Fuel Oil Terminal Co. to Finish Storage Expansion in 2013

HFOTCO, OIL STORAGE CAPACITY
(Millions of Barrels)
  Fuel Oil Crude Oil Total
Current 11.6 3.2 14.8
3Q 2013 1.3 1.3
Total 12.9 3.2 16.1

The Houston Fuel Oil Terminal Company (HFOTCO) is expected to complete an expansion of its oil storage capacity in 2013. In the final phase of a major expansion project, HFOTCO will add 1.3 million barrels of fuel oil storage by third quarter 2013. When completed, HFOTCO will have a total of 16.1 million barrels of storage capacity, including 12.9 million barrels for fuel oil and 3.2 million barrels crude oil. The additional 1.3 million barrels of storage is located in Area 20 of the facility’s North terminal. See accompanying table. Located on 310 acres on the Houston Ship Channel, HFOTCO is the largest provider of fuel oil storage in the Gulf of Mexico. HFOTCO currently has 14.8 million barrels of storage capacity – 11.6 million for fuel oil and 3.2 million for crude oil. Once the expansion is completed the terminal will have 16.1 million barrels of storage. See accompanying table. Located on 310 acres on the Houston Ship Channel, HFOTCO is the largest provider of fuel oil storage on the US Gulf Coast. Due to its broad customer base, HFOTCO’s customers are provided ample trading counterparties within the terminal.

Of HFOTCO’s four ship docks, three can handle crude as well as fuel oil while the fourth is resid-only. The docks have 45 foot draft, 165 foot beam, and a 1,000 foot LOA. The docks have pumping capability of 40,000 barrels/hour for both crude and fuel oil. HFOTCO has nine miles of additional intra-terminal piping to facilitate tank-to-tank transfers. When not servicing vessels, each ship dock can accommodate four barges. In addition to the four ship docks, HFOTCO has seven barge docks that can service 19 barges simultaneously, with each barge dock offering at least 12 foot draft and a 350 foot LOA. In addition to seaborne service, HFOTCO also has rail and truck capability.

HFOTCO is evaluating several options for another possible expansion of storage capacity. The company has land available to build tanks with over 4.5 million barrels of additional storage capacity or to accommodate other facilities. If needed, HFOTCO has the ability to build a fifth ship dock in the future.

HFOTCO is owned by Alinda Capital Partners, LLC, an infrastructure investment firm. Alinda acquired HFOTCO from ArcLight Capital Partners, LLC in October 2011. In a revamped management team, Mr. Shaun Revere joined the company as Chief Executive Officer in October 2012, and Mr. Blake Trahan started in November 2012 as the Vice President of Sales.

Source: Axelrod Energy Projects LLC – Fuel-Oil-&-Feedstock-Trader_Dec2012-Jan2013.pdf

 

October 31, 2011
Alinda Capital Partners Acquires Houston Fuel Oil Terminal Company

GREENWICH, CT – Alinda Capital Partners (“Alinda”) announced today that investment funds managed by Alinda have acquired 100% ownership of Houston Fuel Oil Terminal Company (“HFOTCO” or the “Company”) from AL Gulf Coast Terminals, an investment affiliate controlled by ArcLight Capital Partners, LLC (“ArcLight”). Terms of the transaction were not released.

HFOTCO is a leading marine terminal for storage of residual fuel oil and crude oil. The Company owns and operates a world-class, 13.8 million barrels storage terminal, and is the largest provider of residual fuel oil storage in the U.S. Gulf Coast. HFOTCO’s assets are strategically located on a 312-acre footprint at the widest point of the Houston Ship Channel, one of the largest trading centers for residual fuel oil and crude oil in the world. The Company stores, blends, and transports residual and crude oil via pipeline, barge, rail, truck and ship for major oil companies, refiners, carbon black manufacturers, international trading firms and bunker suppliers. HFOTCO’s size, strategic location, diverse customer base, and extensive transportation infrastructure create the most attractive and liquid trading platform for residual fuel oil in North America. More information about the company is available at www.HFOTCO.com.

“HFOTCO is the preeminent residual fuel oil terminal on the US Gulf Coast.” said Alinda Managing Partner Chris Beale. “The Company provides a vital service to its customers in the region and around the world. We look forward to a long and successful partnership with management, who share our long-term focus and emphasis on quality operations and growth.”

ArcLight’s Managing Partner, Dan Revers, comments, “We are very proud of HFOTCO and the transformation of the business into a world class facility with state-of-the art infrastructure and services for customers. We are pleased that Alinda recognized the strengths of the business through executing this acquisition.”

“We are excited about Alinda’s investment,” said HFOTCO CEO Bill Wilson. “Alinda is committed to working with the HFOTCO team to continue to grow the Company and expand the service offering to our customers.”

About Alinda Capital Partners

Alinda Capital Partners is an independent, American-owned firm that is the largest manager in the United States of pension assets for investment in infrastructure and the fourth largest in the world, with over $7.4 billion of equity commitments under management. Alinda’s investors are predominantly U.S. and European pension funds for public sector and private sector workers, and include some of the largest institutional investors in the world. Alinda has ownership interests in airports – including Heathrow Airport in the United Kingdom – roads, bridges and a tunnel, a rail service, natural gas distribution utilities, natural gas pipelines and storage, water supply and wastewater treatment, renewable energy production, telecommunications networks, water tanks and other infrastructure assets providing essential services to communities. Alinda has invested in infrastructure companies that operate in 30 states in the United States as well as in Canada, the United Kingdom, Germany, the Netherlands, Luxembourg and Italy. These companies employ more than 15,000 people and serve over 125 million customers annually in more than 400 cities. For more information, visit www.alinda.com.

About ArcLight Capital Partners, LLC

ArcLight is one of the world's leading energy investment firms having invested over $8.5 billion of equity since its inception a decade ago. ArcLight has successfully sourced, managed and realized investments through multiple energy industry cycles. The Firm’s investment team has extensive energy expertise, investing experience, industry relationships, and specialized asset level value creation capabilities. ArcLight is headquartered in Boston, Massachusetts with offices in New York City, Barcelona and Luxembourg. More information about ArcLight can be found at http://www.arclightcapital.com.

 

January 18, 2011
ArcLight Closes Financing For Expansion Of Houston Fuel Oil Terminal Company Complex

BOSTON, Jan. 18, 2011 /PRNewswire/ -- ArcLight Capital Partners, LLC ("ArcLight") announced today that it closed on financing for its latest facilities' expansion at the Houston Fuel Oil Terminal Company complex in the Houston Ship Channel ("HFOTCO" or the "Company"). HFOTCO is constructing a new state-of-the-art ship dock and recently began constructing an additional 2.7 million barrels of residual fuel oil storage. These projects support a continuation of HFOTCO's ongoing expansion plans to provide unique blending and storage services to its customers.

ArcLight's Managing Partner, Dan Revers, notes that HFOTCO's customers include petroleum refiners and traders that have made firm, long-term commitments on leases of tank capacity while new customers continue to inquire on the availability of storage opportunities. He said, "We are committed to expanding the HFOTCO facilities and view these new shipping and barge handling capabilities as a core component to increasing terminal efficiency and providing superior service to our customers."

HFOTCO's strategic location and position as the largest provider of residual and crude fuel oil storage in the Gulf of Mexico enables the Company to serve as an extension of its customers' businesses. "We recognize the increasing demand for petroleum product handling capacity in the Houston Ship Channel and will continue to invest in and look for innovative ways to meet the demand in this market," Revers added.

The Company currently has 13.3 million barrels of working tank capacity at its terminal with another 2.7 million barrels under construction that will be commissioned during 2011 and 2012. The latest addition, 1.5 million barrels, is already secured with customer contracts, and will go into service in phases beginning in September 2011. Included in this expansion are another 20-spot railcar rack facility and a new substation to further strengthen service reliability. Since 2006, Houston Fuel Oil Terminal has increased its blending and storage capacity by over 35 percent, tailoring its offering to best meet customer needs. Looking forward, the Company has additional acreage to allow for several million barrels of storage capacity beyond the expansions in progress.

Construction will be completed on HFOTCO's new ship dock in May 2011, adding the ability to handle another 180 ships annually. This addition brings the Company's existing vessel handling facilities to a total of four deep-draft ship docks and six barge docks that can accommodate 19 barges simultaneously. The Company also offers two existing rail car racks, with capacity for 30 rail cars, to provide customers with a full suite of transportation options.

HFOTCO was recently awarded $120 million of Hurricane Ike bonds issued by the State of Texas, $75 million of which was issued in November 2010 ( http://www.brb.state.tx.us/ike/IkeBonds.aspx). This commitment strengthens HFOTCO's ability to continue the expansion and advancement of its infrastructure, storage, and blending capabilities.

ABOUT HFOTCO:

HFOTCO, strategically located on 310 acres on the Houston Ship Channel, is the largest provider of crude and residual fuel oil storage in the Gulf of Mexico. The Company provides product storage, heating, blending, and transportation services for regional refineries, major integrated oil companies, and trading operations. HFOTCO delivers a unique service to its customers, and is a very liquid point for inter-facility trade, due to its size, strategic location, and extensive transportation infrastructure. More information about HFOTCO can be found at www.hfotco.com.

ABOUT ARCLIGHT CAPITAL PARTNERS:

ArcLight is one of the world's leading energy investment firms with more than $7 billion under management. ArcLight's investment team has extensive energy investing experience, industry relationships, and asset level knowledge. ArcLight is headquartered in Boston, Massachusetts with offices in New York City, London and Luxembourg. More information about ArcLight can be found at www.arclightcapital.com.

SOURCE ArcLight Capital Partners, LLC