Back to Home | Houston Fuel Oil Terminal Company

News – Archives

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

July 23, 2010
ARCLIGHT CAPITAL PARTNERS ANNOUNCES CLOSING OF $305 MILLION FINANCING FOR AL GULF COAST TERMINALS, LLC

Boston, MA - AL Gulf Coast Terminals, LLC, a majority owned portfolio company of ArcLight Capital Partners, LLC ("ArcLight"), announced today that it has closed a $305 million financing supported by the ownership interests in its subsidiary, Houston Fuel Oil Terminal Company, LLC ("HFOTCO"). ArcLight invested in HFOTCO in 2007 and increased its ownership to 100% in October 2009 by purchasing 50% of the business from Motiva Enterprises LLC, a joint venture between Shell and Saudi Refining, Inc.

HFOTCO is the largest provider of crude and residual fuel oil storage in the Gulf of Mexico, with 13.3 mm barrels of storage capacity. The company provides product storage, heating, blending, and transportation services for regional refineries, major integrated oil companies, and trading operations. HFOTCO's size and strategic location allow it to provide unique blending and storage services, which are critical to many of its customers' businesses. HFOTCO has begun construction on a fourth deep-water ship dock which will ensure HFOTCO's superior servicing levels to its existing customer base as well as allow the company to execute its plans for additional expansion to accommodate current customer demand.

ArcLight refinanced the existing holding company facility with a $305 million term Loan B facility rated BBB-/Ba2 by S&P and Moody's, respectively. Barclays Capital was the sole arranger for the financing. The proceeds from the financing were utilized to repay existing outstanding debt and provide a distribution to the sponsors.

"We are pleased to have closed this financing and are excited to move forward on our future growth plans at HFOTCO. We are well positioned with the existing business and remain committed to future expansions to support our customer demand at this highly strategic asset in the U.S. Gulf Coast", said Dan Revers, Managing Partner at ArcLight. "HFOTCO's strong customer base, significant growth prospects and stellar management team make the business an ideal investment for our Funds", added Mr. Revers.

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 $6.8 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 http://www.arclightcapital.com.

 

September 28, 2009
ArcLight Closes on Acquisition of 50% Interest in Houston Fuel Oil Terminal Company, LLC from Motiva Enterprises, LLC

Boston, MA -ArcLight Capital Partners, LLC ("ArcLight") has closed on the acquisition of the remaining 50% membership interest in Houston Fuel Oil Terminal Company, LLC ("HFOTCO") from Motiva Enterprises, LLC. ArcLight acquired its initial 50% interest in HFOTCO in October 2007 from Chartco, LLC.

HFOTCO is the U.S. Gulf Coast's largest black oil facility with 11 million barrels of tankage in operation and another 2 million barrels currently under construction. Since 1979 HFOTCO has been storing, blending and moving residual oil for carbon black manufacturers, refineries, bunker suppliers and oil traders. Starting in 1992 HFOTCO began storing and delivering crude oil and feedstock to area refineries.

"We are pleased to expand our ownership position in one of the U.S. Gulf Coast's most important and strategic terminal assets", said Dan Revers, Managing Partner at ArcLight. "HFOTCO's strong asset base, impressive management team and significant growth prospects make it an ideal investment for our Funds", added Mr. Revers.

About ArcLight Capital Partners, LLC

ArcLight is one of the world's leading energy investment firms with more than $6.8 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 http://www.arclightcapital.com.

 

January 10, 2008
HOUSTON FUEL OIL TERMINAL COMPANY ANNOUNCES ACQUISITION OF DOW HALTERMANN PRODUCTS FACILITY LOCATED IN HOUSTON, TEXAS

HOUSTON (January 10, 2008) - Houston Fuel Oil Terminal Company (HFOTCO), a major Houston-based provider of crude and residual fuel oil storage, today announced the acquisition of the Dow Chemical Company's Haltermann Products Facility located near the intersection of Sheldon Road and Jacintoport Boulevard. This property includes 50 acres, numerous tanks, a barge dock, rail spurs, truck racks, and land for further expansion. Kevin Hickey, Director, Business Development, stated "This acquisition fits nicely with HFOTCO's existing facility. The acquired property will be tied into our main plant later this year. Given the long lead times for building storage tanks, acquiring existing tanks will accelerateHFOTCO's expansion plans. Additionally, the property provides future opportunities not only for residual fuel, but also for other storage opportunities."

 

August 2007
HOUSTON FUEL OIL TERMINAL COMPANY ANNOUNCES EXPANSION
Houston-Based Oil Storage Company Adds Tankage to Meet Customer Demands

HOUSTON (August, 2007) - Houston Fuel Oil Terminal Company (HFOTCO), a major Houston-based provider of crude and residual fuel oil storage, today announced its plans to build new storage capacity on its property north of Jacintoport Boulevard, which is located on the Houston Ship Channel. This expansion will increase HFOTCO's overall tankage capacity by 1.6 million barrels . Additionally, HFOTCO will expand its current infrastructure and waterfront capacity to complement this expansion. William T "Bill" Wilson, President and CEO for HFOTCO stated that "Houston Fuel Oil is responding as quickly as possible, within construction time constraints, to the growing demand for crude and residual oil tankage in the greater Houston area. Additionally, we will remain proactive in pursuing creative ways to add future resid tankage on our Jacintoport Boulevard property to meet customer needs. "This expansion, combined with previously announced expansions, will increase HFOTCO's residual fuel oil and crude storage capacity by over 2.8 million barrels in the next 3 years. This expansion will also bring HFOTCO's total capacity to almost 13 million barrels.

 

July 2006
HOUSTON FUEL OIL TERMINAL COMPANY ANNOUNCES EXPANSION
Houston-Based Oil Storage Company Adds Tankage to Meet Customer Demands

HOUSTON (July, 2006) - Houston Fuel Oil Terminal Company (HFOTCO), a major Houston-based provider of oil blending, storage and shipping for electric utilities, carbon black manufacturers, refineries, traders, and bunker suppliers, announced today their plans for building three 400,000 shell barrel internal floating roof tanks to store crude oil on the Jacintoport Boulevard property, which is located on the Houston Ship Channel. One of HFOTCO's crude oil customers will occupy the new 1.2 million barrels of tankage. "Houston Fuel Oil is responding as quickly as possible, within construction time constraints, to the growing demand for resid and crude oil tankage in the greater Houston area," said Bill Wilson, CEO for HFOTCO. "We will remain proactive in looking for creative ways to add future resid tankage on our Jacintoport Boulevard property to meet customer needs." Additionally, HFOTCO is building one 220,000 barrel tank and converting 850,000 barrels of storage to residual fuel oil use. Combined, this will give HFOTCO the capacity for more than one million barrels of new residual fuel oil storage for new and existing customers.

 

July 2005
HOUSTON FUEL OIL TERMINAL COMPANY NAMES PRESIDENT/CEO
Seasoned Veteran in the Energy Industry to Lead Houston-Based Terminal and Oil Blending Company

HOUSTON (July, 2005) - Houston Fuel Oil Terminal Company (HFOTCO), a major Houston-based provider of oil blending, storage and product transfer services for electric utilities, carbon black manufacturers, refineries, traders, and bunker suppliers, announced today that William T. (Bill) Wilson has accepted the position of president and CEO of the company. Wilson has more than 25 years of experience in the energy industry, including transportation, operations, trading, and risk management. Prior to joining HFOTCO, Wilson was president of Wilson Advisors, an advisory firm specializing in performance turnarounds and growth opportunities for energy-related companies. His experience at Wilson Advisors ranged from providing entire corporate risk management programs to providing business plans for under-utilized energy assets. Wilson's other business ventures include the following: president of FAME Energy, a software and data provider to the energy marketing and trading sector; president of UNOCAL Global Trade, the worldwide marketing, trading and pipeline division at UNOCAL, where he was also an executive officer and chairman of the Risk Management Committee for the Board of Directors; and several upstream and midstream engineering and management positions with British Petroleum, Tenneco and Exxon. "Houston Fuel Oil is unmatched in the terminal industry, and I'm excited to join them," Wilson said. "I'm looking forward to using my industry background to build on the company's commitment to providing its customers with excellent service and state-of-the-art technology in handling their oil blending, storage and transfer needs."