Dow’s $620 million deal with Vopak Industrial Infrastructure Americas, a joint venture of Royal Vopak and BlackRock’s Global Energy & Power Infrastructure Fund, to take over marine and storage terminal operations and assets at Dow’s sites in Plaquemine and St. Charles, Louisiana and Freeport, Texas, is expected to close by year’s end.
Vopak is acquiring three major industrial terminals on the U.S. Gulf Coast, each adjacent to an active Dow production complex. The company will enter into long-term service agreements with Dow for storage and infrastructure services. Dow expects Vopak’s terminal expertise and capabilities to deliver additional operational efficiencies and opportunities for growth.
The total capacity of the three terminals is 852,000 cubic meters (cbm). The Freeport, Texas, terminal has 53 tanks (140,000 cbm) for storage of chemicals. The St. Charles terminal has 73 total tanks (409,000 cbm) for storage of chemicals. The Plaquemine 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.
Royal Vopak CEO Eelco Hoekstra said in a prepared statement that the deal fits into the Rotterdam, Netherlands, company’s growth strategy for industrial terminals. The independent tank storage company is focused on bulk liquid products and gases ranging from chemicals, oils, gases and LNG to biofuels and vegoils.
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