Exolum to Acquire 50% Stake in Houston Ammonia, NGL Storage Terminal from Moda Midstream
(P&GJ) — Exolum has agreed to acquire a 50% interest in Vopak Moda Houston LLC, an ammonia storage, import and export terminal located on the Houston Ship Channel, from Moda Midstream LLC.
Terms of the transaction were not disclosed.
Vopak Moda Houston (VMH) is a joint venture that is 50% owned by Moda Midstream, an EnCap Flatrock Midstream portfolio company, while the remaining 50% interest is owned by Vopak Terminals North America.
The acquisition of Moda’s interest in VMH will be another step forward in Exolum’s diversification strategy and will position Exolum as a leading manager of infrastructure and decarbonizing fuel in the decades to come.
The investment in VMH will serve as a platform for Exolum’s development in the U.S. and the acquisition of key competences in the development of the logistics infrastructures required by the energy transition in order to boost low-carbon fuels.
VMH is the only existing waterborne ammonia terminal on the Houston Ship Channel with a Very Large Gas Carrier (VLGC)-capable deepwater berth and is strategically connected via pipeline to the Port of Houston’s petrochemical complex, the largest petrochemical hub in the U.S. and the world’s second largest. The facility currently provides ammonia and natural gas liquid (NGL) storage services.
Ammonia is widely expected to become a driver for decarbonization due to its ability to reduce emissions in hard-to-decarbonize sectors, including power generation, heavy industry, marine fuel, and other mobility methods. With the ability to safely and reliably store and transport ammonia and other pressurized gases, VMH will be a great contributor to the energy transition supply chain.
With its state-of-the-art ammonia terminal infrastructure and workforce that is ideally located on the Houston Ship Channel, VMH is positioned to become the leading hydrogen and low-carbon ammonia hub on the U.S. Gulf Coast and to facilitate the acceleration of energy decarbonization globally.
The transaction, which is subject to customary regulatory reviews and approvals, is expected to close in the first quarter of 2024.
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