Glencore unit takes Transmontaigne tank lease from Morgan -sources
By Anna Louie Sussman
NEW YORK, Feb 24 () - TransMontaigne Partners LP has agreed to lease capacity at two Florida marine fuels terminals under a 2-year deal, ending its current agreement with Morgan Stanley, TransMontaigne announced on Wednesday.
TransMontaigne did not name the new lessee, but industry participants said it was Singapore-based marine fuel supplier Chemoil Energy Ltd, which is majority-owned by commodities giant Glencore Xstrata. A Chemoil spokesperson was not immediately available to comment.
The agreement with Morgan Stanley to lease these facilities will end on May 31, 2014, as the investment bank's trading arm reduces its physical footprint and moves to sell its stake in TransMontaigne, for which it was the biggest client.
The agreement announced in a TransMontaigne statement on Monday covers tanks with an aggregate capacity of 1.35 million barrels at marine fuels terminals in Port Everglades and Fisher Island. The two-year deal will begin on June 1, 2014, and will have options for renewal, according to the statement.
The terminals represent about 6 percent of the company's total tank capacity. Marine fuels, commonly known as "bunker fuels," are used to power ships' engines, generators and auxiliary machinery.
In July 2013, Chemoil expanded its U.S. operations by acquiring Colonial Group's bunkering business in the ports of Savannah, Charleston and Jacksonville, according to a report by the Savannah Morning News.
The lease transfer was the second in as many months for Morgan Stanley, whose trading division, Morgan Stanley Capital Group (MSCG), owns 100 percent of TransMontaigne Inc, which controls the general partner of Denver-based TransMontaigne Partners LP.
In late January, TransMontaigne agreed to lease capacity at two oil product terminals, known as the Razorback terminals, and a pipeline to Magellan Pipeline Company LP under a 10-year deal, also ending an agreement with Morgan Stanley. Continuación...