June 8, 2016 [Prostar Capital Ltd.] - Prostar Capital Ltd (“Prostar”), a private equity firm that invests in mid-stream energy infrastructure, today agreed to acquire a 40% interest in a large strategic 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 (“Tyloo”), is a major step in Prostar’s strategy to develop a high quality portfolio of storage assets in Asia-Pacific.
With nearly three million cubic metres of crude oil and refined product storage, it is China’s third largest independent terminal and is strategically located in one of the largest oil refining and petrochemical regions of China. The terminal has direct access via pipeline to approximately 20% of China’s refining capacity.
Since commissioning in 2013, the terminal has been attracting high-quality customers, including Chinese State Owned Enterprises and major global oil traders and has been operating close to 100% capacity utilization.
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 four million cubic metres.
“The strategic 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.”
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% interest in the 1.2 million cubic metre Fujairah Oil Terminal (“FOT”) located in the United Arab Emirates.
Prostar’s Chairman Greg Martin said: “This asset is an excellent addition to our portfolio and a great example of how GTI seeks to invest in well-located quality assets in major energy hubs. Our partnership with Tyloo is a great platform from which we can continue to build a major presence in the region.”
Yu Min, Chairman of Tyloo, said: “I am very pleased to welcome Prostar who we see as a long term strategic partner bringing significant international best-practice operating, marketing and financing expertise in midstream energy infrastructure generally, and also specifically in the storage terminal sector.”
