Prostar Capital will invest up to $100 million to expand and upgrade operating capacity at its GTI Statia storage terminal.
The expansion at the terminal, which is one of the largest independent crude and refined product storage terminals serving the US Gulf Coast, Latin American and Caribbean markets, is to meet demand from new and existing customers.
Since acquiring the asset in July 2019, Prostar has put in place a new senior team, including Walter Wattenbergh, former CEO of LBC Tank Terminals, as chairman of GTIS and John Roller as president and CEO.
Prostar is now focused on executing its capital investment plan for the terminal, driven by demand from new customers to capitalise on emerging regional and global trends in the oil market. This plan involves the investment of up to $100 million over the next two years on tank upgrades and jetty and marine infrastructure improvements.
The upgrades will further GTIS' role as a major provider of make- and beak-bulk services to its customers looking to move crude oil by VLCC in and out of the US Gulf Coast as well as to end markets in the Asia-Pacific region. They will also allow GTIS to continue to provide bunkering services to cruise and cargo customers throughout the Caribbean. The capital investment plan aims to improve infrastructure flexibility, a critical factor for storage operators in enabling the IMO 2020 transition.
Steve Bickerton, senior managing director of Prostar Capital, says: 'Now that our senior leadership team is established, we are very pleased to commence our capital investment plan for GTI Statia. These improvements are a critical component of our investment rationale and will allow us to modernise the terminal while continuing to provide outstanding customer service and deliver attractive returns for our investors.'
John Roller, president and CEO of GTI Statia, adds: 'Our plan allows the facility to focus on being a leading terminal operator and will leverage our strategic vision to enhance the service, quality and value of the business.'