WASHINGTON (Legal Newsline) – The Federal Trade Commission will require ArcLight Energy Partners Fund VI LP, to divest four light petroleum product terminals in Pennsylvania so that it can complete its acquisition of Gulf Oil Limited Partnership.
These terminals are delivery points alone pipeline and marine routes for the transport and delivery of light petroleum products (LPPs). When ArcLight, an energy investor, first tried to acquire Gulf Oil from its parent company, Cumberland Farms Inc., concerns arose that it would own too many terminals, making the region anti-competitive.
The FTC alleged that there is no cost-effective substitute for terminals. Additionally, with the acquisition, ArcLight would own the only terminal handling gasoline and one of two terminals handling distillates in Altoona, Pennsylvania, one of two terminals handling gasoline and distillates in Scranton, Pennsylvania, and one of two terminals handling gasoline and one of three handling distillates in Harrisburg, Pennsylvania. The FTC believes this would substantially reduce competition in these markets.
To resolve the issue, ArcLight and Gulf have agreed to divest to Arc Logistics four of Gulf’s Pennsylvania LPP terminals – one in Altoona, one in the Scranton market, and one each in Mechanicsburg and Williamsport in the Harrisburg market.