Global Partners LP will carry out a multi-million-dollar expansion and tank refurbishment project that will add 180,000 barrels of ethanol storage capacity and rail access at the its refined petroleum products terminal in Albany, N.Y. Developed jointly with Canadian Pacific Railway Limited, the project, expected to be operational in 2010, includes modifications that will enable the Albany terminal to schedule the delivery of 80-car trains of ethanol. Global Partners will connect the terminal to CP's adjacent Kenwood Yard rail facility via pipeline. The terminal and rail facility are strategically located along the Hudson River, providing access to the global Partners' terminal network in the Northeast.
project further advantages our Albany terminal as a low-cost, logistically
situated asset within our supply and distribution chain," said Global
Partners’ President and Chief Executive Officer Eric Slifka. "The terminal
and rail facility serve as an advantaged distribution point for our network of
terminals throughout the Northeast."
Global Partners’ estimated
cost for this project is approximately $5 million. The company will be
responsible for enhancements to its terminal, including the refurbishment of
two refined petroleum product tanks to store ethanol. CP will be responsible
for construction of the rail car unloading facility at Kenwood Yard. CP has
single-line haul capability from the U.S. Midwest to water on the U.S. Eastern
seaboard. In a separate and complementary project, Global Partners also is
converting two distillate storage tanks to gasoline storage at the Albany
terminal to CP’s Kenwood Yard provides us with another supply option into and
out of the Albany terminal, thereby creating an additional revenue opportunity
and further enhancing our operating efficiencies," Slifka said. "The
project diversifies our product base and enables us to meet the market’s
growing need for ethanol in the Northeast."
These initiatives, together
with earlier tank rehabilitations completed by Global Partners, will increase
the storage capacity at the Albany terminal from approximately 737,000 barrels
when the company acquired it in May 2007 to approximately 1.2 million barrels.