In Shanghai, China, merchant energy company Louis Dreyfus Highbridge Energy and Zhejiang Zhong Ao Energy have set up a joint venture company, Louis Dreyfus Zhong Ao Energy.
Throughout two phases the new company will build a terminal for the import and export of oil and petrochemicals, and a storage facility in Zhoushan City, Liuheng Island.
Phase 1 will see Louis Dreyfus Zhong Ao Energy construct a storage facility with a 1.4 million barrel capacity and a deepwater port with a 75-foot draft.
Phase II of the project will include the construction of an additional 7.5 million barrels of storage capacity for crude oil and petroleum products.
Energy trading firm LDH Energy is a minority partner in the JV and will bring its knowledge of commercial development to the project. Zhong Ao will manage day-to-day operations.
This terminal in Shanghai is ‘the first of several initiatives to expand our presence in the Asia Pacific Region’, says William Reed, president and CEO of LDH Energy.
The joint venture has received regulatory approval and will be fully formed by the end of this year.