TransMontaigne Partners L.P. (the partnership) has announced its first quarter 2017 (1Q17) financial and operating results, including the expansion of its Collins terminal and reported 1Q17 net earnings of US$13 million compared to US$8.7 million in the prior year's first quarter (1Q16).
The company previously entered into a long-term terminalling services agreements with various parties for approximately 2 million bbls of new storage capacity at the Collins, Mississippi bulk storage terminal. The revenue associated with these agreements comes online upon completion of the construction of the new tank capacity. In December 2016, Transmontaigne placed 0.9 million bbls of the 2 million bbls of new tank capacity into service, and in February and May 2017 it placed an additional 0.3 million and 0.3 million bbls into service, respectively. Completion of the remaining 0.5 million bbls of new tank capacity will occur in various stages through the 2Q17.
The anticipated aggregate cost of the 2 million bbls of new capacity is approximately US$753 million. Construction of the Collins expansion project commenced in the 1Q16, and the company has spent approximately US48 million as of 31 March 2017.
The Collins/Purvis terminal complex is strategically located for the bulk storage market and is the only independent terminal capable of receiving from, delivering to, and transferring refined petroleum products between the Colonial and Plantation pipeline systems. The facility has current active storage capacity of approximately 4.9 million bbls and is expected to increase to approximately 5.4 million bbls once the remaining 0.5 million bbls of tankage is completed. Transmontaigne are in the process of permitting an additional 5 million bbls of capacity for future construction at its Collins terminal and are in active discussions with several prospective customers regarding this potential future capacity.
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