Vopak has announced plans to expand its Deer Park chemical terminal in Houston and its terminal in Australia.
The storage operator will expand its Deer Park facility in the port of Houston, US with an additional 33,000 m3 of chemical storage, which is expected to be commissioned in the second quarter of 2021. The company is also adding 105,000 m3 of storage at its terminal in Sydney, Australia, to cater for demand for clean petroleum products and aviation fuels. This capacity is expected to be commissioned in the second quarter of 2021.
Additionally, Vopak has acquired a 10.7% equity share in Hydroenious LOHC Technologies, which develops innovative technology to allow for safe and cost-effective logistics of hydrogen. The combination of Vopak's terminal network with the liquid organic hydrogen carrier technology has the potential to create a breakthrough in the storage and transportation of renewable energies.
In its half year 2019 financials, Vopak's EBITDA increased by €52 million and reported occupancy rates of 85%, which reflects planned temporary conversion activities related to IMO 2020 readiness and ongoing market conditions at oil hub terminals, whereas other market segments remained solid.
Looking ahead, the company's expansion programme will add 3.2 million m3 in 2018 and 2019, of which 2.1 million m3 was commissioned up to the end of June 2019. Fuel oil capacity conversions for the IMO 2020 bunker fuel regulations are progressing well and will support new market requirements as from the fourth quarter of 2019.
CEO Eelco Hoekstra says: 'The first half of 2019 was important as we have taken further steps in the delivery of our strategy and the alignment of our portfolio based on long-term market developments.
'We have taken significant new capacity into operations to meet new customers demand. Together with our partners we fully commissioned the industrial terminal PT2SB in Malaysia and celebrated the opening of the LPG export terminal in RIPET in Canada. In addition, we expanded our share in the LNG import terminal in Pakistan.
''The divestment of some of our European assets will, after completion, shift our portfolio further towards industrial, chemical and gas terminals. We aim to grow our portfolio in line with market developments and expect our growth investment momentum in 2019 to continue in 20202. Looking further ahead, we continue to explore opportunities in new energies and have today announced our first investment to facilitate the development of hydrogen logistics.
'Our digital transformation is progressing well with the global roll-out of our cloud-based digital terminal management system and we have made excellent progress with our new business development projects.'
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