Further investment is planned for two key UK fuel storage sites on Teesside, in a major deal to create the UK’s largest independent bulk liquid storage firm. Macquarie Capital and oil company Greenergy has bought Royal Vopak’s storage sites throughout the UK, including Seal Sands.

There are “no plans to change existing operations or management and staff of the terminals” according to Navigator. Greenergy has a team of around 25 at North Tees and a further 18 fuel tanker drivers.

As part of the transaction, Greenergy has entered into long-term off take agreements with Navigator at Seal Sands and North Tees.

Greenergy is one of the UK’s leading providers of road fuel, supplying more than 15bn litres a year to oil companies, supermarkets, petrol stations and fleet users from its terminals including Teesside.

The deal will see Greenergy North Tees storage terminal and Royal Vopak’s storage facility at Seal Sands transfer to Navigator Terminals, as strategic sites located in areas of “significant regional demand”.

A new diesel pipeline will also be built to link the deep water jetty at North Tees with the neighbouring Seal Sands terminal, “increasing efficiencies for the benefit of all customers” according to the firm.

Greenergy invested an eight-figure sum in its North Tees site last year to increase its flexibility to respond better to trends in fuel supply and demand.

These include closure of traditional export markets in the US and Asia and the onset of fracking – which has turned the US from an importer to an exporter of oil.

Andrew Owens, Greenergy Chief Executive, said: “Our participation in Navigator 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. “This transaction is another example of the flexible, partnership capital Macquarie Capital is able to deploy to support clients globally.”