Prostar Capital has acquired a 40% interest in China’s third largest independent oil storage terminal for more than $100 million (€88.7 million).
The terminal on Zhoushan Island in Zhejiang Province is owned by Tyloo Oil and Gas International Holdings Corporation.
The facility has nearly three million m3 of crude oil and refined product storage and is located in one of the largest oil refining and petrochemical regions of China. It has direct access via pipeline to approximately 20% of China’s refining capacity.
Since it was commissioned in 2-13, the terminal has had customers including Chinese State Owned Enterprises and major global oil traders and has been operating close to 100% capacity utilisation.
Prostar’s managing partner Steve Bickerton says that with this acquisition, the company has total capacity in the Asia-Pacific region of more than four million m3.
He adds: ‘The strategic location of this terminal in an industrial heartland along with China’s growing domestic energy needs means there will be continuing and rising demand for storage from a range of major domestic and international customers. In addition, there is expansion potential on spare land next to the terminal.’
The investment is being made via a subsidiary of Global Terminal Investment’s, which is Prostar’s storage terminal investment company.
Yu Min, chairman of Tyloo, says: ‘I am very pleased to welcome Prostar who we see as a long-term strategic partner bringing significant international best-practice operating, marketing and financing expertise in midstream energy infrastructure generally, and also specifically in the storage terminal sector.’