Dow has selected a new 50/50 joint venture of Royal Vopak and BlackRock’s Global Energy & Power Infrastructure Fund to acquire three major industrial terminals on the U.S. Gulf Coast for $620m.
The name of the new joint venture is Vopak Industrial Infrastructure Americas LLC, which will have “a diversified set of infrastructure assets, in three locations, with each situated alongside an active Dow production complex”.
Vopak Industrial Infrastructure Americas will enter into long-term service agreements with Dow, for storage and infrastructure services. Dow expects Vopak’s terminal expertise and capabilities will deliver additional operational efficiencies and opportunities for growth.
The total capacity of the three terminals is 852,000 cubic metres (cbm). The Freeport, Texas, terminal has 53 tanks (140,000 cbm) for storage of chemicals. The St. Charles, Louisiana, terminal has 73 total tanks (409,000 cbm) for storage of chemicals. The Plaquemine, Louisiana, terminal has 30 tanks (303,000 cbm) for storage of chemicals and refined products.
The involved assets include 16.4 hectares of expansion land, 36 vessel berths, multiple pipeline connections, rail and truck racks.
Vopak Industrial Infrastructure Americas and Dow are working closely to ensure a seamless transition. The transaction is expected to be closed before year end 2020, subject to customary closing conditions.
Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak, said: “This unique expansion opportunity, in which we partner with the leading global investment experts of BlackRock, fits perfectly into Vopak’s growth strategy for industrial terminals. We are very proud of our expertise and long track record of storing vital products with care for our customers and our drive to continue to invest.”
For more information visit www.vopak.com