Indian oil, gas and chemical logistics firm Aegis Logistics and Dutch tank storage company Vopak have formed a new partnership to operate eight LPG and chemical storage terminals in India.
The terminals will be located in five ports on India’s east and west coasts, and will have a total capacity of 960,000 m3. Aegis Vopak Terminals will become one of the largest independent tank storage companies for LPG and chemicals in India. The transaction to create the partnership is expected to close early 2022, subject to customary closing conditions.
The partners say that they are well-positioned for further growth, and will target mainly LPG, as well as chemical and industrial terminal opportunities. Vopak says that the investment is part of its strategy to invest in gas markets.
‘This is an investment in a growth market and by joining forces with Aegis we aim to deliver growth over the next ten years in line with the new joint ventures’ and India’s ambition for LPG,’ says Vopak chairman Eelco Hoekstra. ‘We are very excited for this new partnership. Aegis is a reputed local partner with a ready organisation and proven track record of conceiving and executing tank farm assets in strategic locations along the Indian coastline.’
Raj Chandaria, chairman of Aegis Logistics, adds: ‘This joint venture with Vopak will accelerate the growth of Aegis in the terminals business and has the potential to allow Aegis to diversify into new areas of gas storage such as LNG and other energy projects including renewables in partnership with the world’s leading independent tank storage company. We expect the deal to be significantly earnings enhancing for Aegis shareholders due to the deployment into growth opportunities of the combined financial firepower of the two groups and management in the terminals business.’
