Greenergy has secured deals which will further cement its position as the UK’s biggest provider of wholesale fuels in the UK.
The deals with Royal Vopak involve stepping up its involvement at Thames Oilport – the site of the former Coryton Oil refinery on the estuary of the River Thames – as well as securing further terminal capacity.
At Thames Oilport, where it is involved in a joint venture, Greenergy has agreed to buy the one third share owned by Royal Volpak. Shell retains its existing third share.
Coryton had supplied 20% of London and the South East’s fuel but its owner Petroplus collapsed in January 2012 and it ceased production in June that year.
The partners are converting the refinery into a fuel storage terminal for import and distribution in UK, but the project has been hit by long delays.
In the statement announcing the deal Greenergy said work was under way to complete engineering and commissioning work required to bring into use an initial 175,000 cubic metres of tankage at Thames Oilport.
It added: “This tankage will be used by Greenergy for diesel storage from the second quarter of 2016, connecting the Thames market to deep-water, long-haul diesel capability. This is a major development that will bring oil into Thames Oilport for the first time since the closure of Coryton refinery.”
Greenergy chief executive Andrew Owens said: “The continued development of Thames Oilport is strategically important for Greenergy. These are significant steps towards the realisation of a new, fully-operational fuel import and distribution terminal at this location. We look forward to working in the new ownership structure with our co-partner Shell.”
In addition, Macquarie Capital and Greenergy have partnered to establish Navigator Terminals, which will acquire Royal Vopak’s UK storage facilities at West Thurrock on the Thames, Seal Sands at Teesside and Windmill near Cardiff. Navigator will also acquire the operational storage assets of Greenergy North Tees at Teesside.
The companies said the acquisitions would give Navigator an initial storage capacity of approximately 1.5 million cubic metres, making it the UK’s largest independent bulk liquid storage provider, and that each terminal was strategically located in an area of significant regional demand.
Owens commented: “Our participation in Navigator ensures our continued access to the infrastructure assets that currently underpin our UK supply position. It gives us greater flexibility at these facilities, ensuring we will be best placed to deliver low cost and resilient fuel supply for our customers in the long term. As an infrastructure investment company, Navigator will also provide a vehicle to fund further infrastructure acquisitions supporting our continued growth in the fuels sector.”
Neil Arora, senior managing director, Macquarie Capital, said: “Greenergy is the leading provider of wholesale fuels in the UK and uniquely placed to lead investment in the UK storage sector. We are delighted to partner with Greenergy to establish Navigator Terminals. This transaction is another example of the flexible, partnership capital Macquarie Capital is able to deploy to support clients globally.”
The acquisitions are scheduled to complete towards the end of the first quarter 2016.