NEW YORK (Reuters) - Enbridge Inc ENB.TO has agreed to sell its dormant crude-by-rail terminal outside Philadelphia to Union Core America, a privately held company that wants to make road fuels with high concentrations of ethanol.
Gerald Jones, president of Wilmington, Delaware-based Union Core America, said on Tuesday it has a pending agreement to buy the facility, where it hopes to bring in ethanol by rail and blend it on-site to make E85 gasoline.
Blending would require additional capital investment, Jones said.
Enbridge declined to comment.
Jones said the sale, initially due to close in April, was expected to be completed before the end of 2017. He said the delay was related to ongoing negotiations with local investors that have minority interest in the terminal.
The 90,000 barrel-per-day crude rail facility, in Eddystone, Pennsylvania, was built in 2012 by Enbridge and local investors to deliver Bakken crude oil to Monroe Energy’s refinery outside Philadelphia.
Deliveries stopped flowing into the facility in February 2016 as rail economics worsened.
E85 gasoline is a gasoline-ethanol blend with high levels of ethanol used for flex-fuel vehicles.
Reporting By Jarrett Renshaw