Dow Sells US Gulf Coast Terminals
Dow is selling its three industrial terminals on the US Gulf Coast to a new 50:50 joint venture of Royal Vopak and BlackRock’s Global Energy & Power Infrastructure Fund for $620 million. The terminals, with a total combined capacity of 825,000 cubic meters, are at Freeport, Texas and St. Charles and Plaquemine in Louisiana.
The deal will give the jv, called Vopak Industrial Infrastructure Americas, a diversified set of infrastructure assets at sites located alongside a Dow production complex. Royal Vopak chairman and CEO Eelco Hoekstra said the “unique expansion opportunity fits perfectly into Vopak's growth strategy for industrial terminals.”
The Freeport facility has 53 tanks totaling 140,000m3 for storing chemicals. The St. Charles terminal has 73 tanks totaling 409,000m3 and also stores chemicals, while Plaquemine has 30 tanks offering a total storage capacity of 303,000m3 for chemicals and refined products. The assets also include 16.4 hectares of land for expansion, 36 vessel berths, multiple pipeline connections, rail and truck racks.
Dow said it expects Vopak's terminal expertise and capabilities to deliver additional operational efficiencies and opportunities for growth. The venture will also enter into long-term service agreements with Dow for storage and infrastructure services.
The transaction is expected to close before year end, subject to customary closing conditions. It follows a similar deal in July when Dow agreed to divest rail infrastructure assets and related equipment at six North American sites to Watco.
The transportation service company will provide select rail services at Dow’s locations in Freeport and Seadrift, Texas; St. Charles and Plaquemine; and Fort Saskatchewan and Prentiss in Alberta, Canada.
Author: Elaine Burridge, Freelance Journalist
