Prostar Capital has agreed to acquire a 40 percent interest in a crude oil and refined product storage terminal near Shanghai for more than US$100 million.
The investment in the terminal on Zhoushan Island in Zhejiang Province, which is owned by Tyloo Oil and Gas International Holdings Corporation, is part of Prostar’s strategy to develop a portfolio of storage assets in Asia-Pacific.
With nearly 3 million cbm of storage the terminal has direct access via pipeline to some 20 percent of the country’s refining capacity.
Since commissioning in 2013, the terminal has been attracting customers, including Chinese state owned enterprises and global oil traders and has been operating close to 100 percent capacity utilization.
The investment is being made via a subsidiary of Global Terminal Investments Ltd (GTI), which is Prostar’s storage terminal investment company. GTI has a 40 percent interest in the 1.2 million cbm Fujairah Oil Terminal (FOT) in the United Arab Emirates.
Steve Bickerton, Prostar’s managing partner, said:
“This acquisition makes Prostar one of the largest private owners of storage capacity in the Asia-Pacific region with total capacity of more than 4 million cbm.
“The location of this terminal in an industrial heartland along with China’s growing domestic energy needs means there will be continuing and rising demand for storage from a range of major domestic and international customers. In addition, there is expansion potential on spare land next to the terminal.”