Vopak and NIBC to build oil storage terminal

Vopak and NIBC European Infrastructure Fund are equal shareholders in a joint venture to construct an oil storage terminal in the Netherlands.

NIBC European Infrastructure Fund, a €350 million fund focusing on Germany, the UK,  Belgium, the Netherlands and Luxembourg, has agreed to team up with storage company Vopak to build and operate a storage terminal in the port of Eemshaven, in the Netherlands.

The terminal will provide “services to European governments for the storage of their strategic reserves of liquid oil products”, according to a statement. A spokesperson for Vopak said that the project is backed by a 60-year land concession.

ING, NIBC and Rabobank provided debt for the deal but Vopak and NIBC did not release financial information, and a spokesperson for Vopak declined to comment on the size of the transaction. Rabobank also acted as financial advisor. 

A statement released by both NIBC and Vopak said that the terminal will have 11 tanks with 60,000 cubic meters of storage capacity each, as well as a jetty. The statement said that the terminal’s capacity has already been rented out for “a long-term period” and should be commissioned by the third quarter of 2012.

Vopak and NIBC European Infrastructure Fund said that they are equal shareholders in the joint venture.

Vopak specializes in storage and handling of liquid chemicals, gasses and oil products with terminals “strategically located for users along the major shipping routes”, according to a statement.

The company also announced today that it has agreed to sell its 20 percent stake in the Bahamas Oil Refining Company to US-based storage and pipeline operator Buckeye Partners for $168 million in cash and about $100 million in Buckeye shares.  Vopak said in a statement that it was exercising its “tag-along” right to sell its stake after its 80-percent equity partner, First Reserve Corporation, sold its stake to a Buckeye subsidiary in December for about $1.3 billion.