December 6, 2011 [Business Wire] - Louis Dreyfus Highbridge Energy LLC announced that it has established a joint venture with Zhejiang Zhong Ao Energy Co., Ltd. ("Zhong Ao") named Louis Dreyfus Zhong Ao Energy Co., Ltd. to construct an oil and petrochemical import/export terminal and storage facility in Zhoushan City, Liuheng Island, off the coast of Shanghai, People's Republic of China.
The terminal and storage facility (“Project”) is expected to be developed over two phases. Phase I of the Project involves the construction of a 1.4 million barrel petrochemical storage facility and deep water port with a 75 foot draft. Phase II of the Project will add 7.5 million barrels of storage capacity for crude oil and petroleum products and associated expansion of and connectivity to the port. LDH Energy will be a minority partner in the joint venture providing commercial development expertise and day to day operations will be managed by Zhong Ao.
William C. Reed II, LDH Energy’s Co-Chairman, Chief Executive Officer and President commented, “This transaction is core to our global growth strategy and is the first of several initiatives to expand our presence in the Asia Pacific region. In this case, we elected to partner with Mr. Wang Yuanwan, Chairman of Zhejiang Zhong Ao Energy Co., Ltd. With the rapid growth of the energy market in China, we are excited that we could find a joint venture partner whose strengths complement ours. We are delighted to be working with Mr. Wang and look forward to a long and successful partnership with him and his organization.”
Mr. Wang added, “We take great pride in forming a strategic alliance with LDH Energy. This partnership combines our strengths with LDH Energy’s expertise operating and commercializing midstream energy assets. This facility is being developed in one of the most economically advanced regions in China and a rapidly growing center of the country’s energy market. We look forward to working together with LDH Energy to build a world class terminal and storage facility to serve the leading energy and petrochemical companies in the PRC.”
The joint venture has received regulatory approval and final formation is expected before year end. White & Case acted as legal counsel to LDH Energy in connection with the transaction.
About LDH Energy
LDH Energy is a diversified merchant energy company with integrated operations involving the marketing and merchandising of energy commodities and the ownership and operation of midstream physical assets. The Company markets a broad range of physical commodities, including natural gas, natural gas liquids, refined products, crude oil, electric power and coal, and financial instruments related to energy commodities. LDH Energy is the merchant energy platform of the Louis Dreyfus Group and the multi-strategy hedge fund of Highbridge Capital Management, LLC. LDH Energy is headquartered in Stamford, Connecticut, with offices in Houston, Texas; Calgary, Canada; Lausanne, Switzerland; Shanghai, People’s Republic of China; and Singapore.
About Zhejiang Zhong Ao Energy Co., Ltd.
Zhong Ao’s parent company is Shanghai Zall Enterprise Development (Group) Co. Ltd. (“Zall”), which is a rapidly growing and diversified private enterprise group established in 1992. The principal businesses of Zall include petrochemical and metal merchant trading, storage terminals and logistics, ship building and repairing, real estate development, elevator, project investment and asset management. Zall is headquartered in Shanghai, PRC with more than 20 subsidiaries in Shanghai, Hong Kong, Hangzhou, Ningbo, Zhoushan, and other cities.
