Red Deer-based Parkland Fuel Corp. has taken steps to boost its presence in Quebec and Ontario.
The company announced a fuel marketing agreement on Tuesday that will add more than 500 million litres in wholesale fuel volumes in the two provinces.
Parkland will assume the customers and assets of TransMontaigne Marketing Canada Inc. (TCMI) and will lease terminal storage in Montreal and Quebec City through CanTerm Canadian Terminals Inc.
In a separate agreement, Parkland Fuel will become Morgan Stanley’s Quebec fuel marketer.
The deals provide a new supply platform to support growth in Quebec and accomplish a goal to land fuel terminal storage access in Eastern Canada.
Adding Morgan Stanley as a partner boosts supply options in Ontario and Quebec.
“Adding Morgan Stanley to our national supply portfolio, coupled with access to fuel terminal storage, provides and excellent platform for us to grow and acquire volume in Quebec,” says Bob Espey, Parkland president and CEO in a statement.
“While only modestly profitable at this time, this is a strategic acquisition with significant growth potential.”
Parkland Fuel says the Ontario business will be immediately integrated into Parkland’s operating platform. The Quebec office will remain under the operating name Les Pétroles Parkland.
Financial terms of the deal were not disclosed.
The arrangements are subject to regulatory approvals, including approval under the Competition Act.