Zenith Energy, L.P., an international liquids and bulk terminaling company, today announced that it has signed an agreement to acquire a liquids storage terminal facility in Hamburg, Germany from Royal Dutch Shell plc. The transaction is expected to close in the first half of 2018. Terms of the transaction were not disclosed.
The terminal assets are located in the Port of Hamburg, Germany’s largest seaport and the third largest container port in Europe. The facility, located on 55 hectares, serves as a refined product import and blending terminal in North Germany with an expected storage capacity of over 480 thousand cubic meters / 3.0 million barrels for gasoline, diesel and jet fuel; inbound and outbound ocean vessel, barge, rail and truck; and pipeline connectivity in the Port of Hamburg. After transferring ownership to Zenith, Shell will remain a significant customer of the terminal.
“We are pleased to further Zenith’s geographic expansion with the acquisition of these terminaling assets strategically located in the Port of Hamburg, one of the world’s largest trading ports and a key terminaling center for crude and refined products in Europe,” said Jeffrey R. Armstrong, Chief Executive Officer of Zenith. “This is a natural progression in our growth strategy and underscores our commitment to expand into key European markets. We are excited to be working with Shell, a leader in the global oil and gas industry, and all of our customers in Hamburg, as well as welcoming our new colleagues in the region and further investing in the terminal facility.”
The acquisition of the Hamburg assets represents Zenith’s third terminal in Europe following its acquisition of terminaling assets in Amsterdam from BP in April 2016 and its acquisition of the Bantry Bay terminal in West Cork, Ireland from Phillips 66 in February 2015. Zenith also operates a multi-product liquids terminal in Palermo, Columbia, formed through a joint venture with Grupo Coremar in 2014. In December 2017, Zenith Energy U.S. completed its acquisition of Arc Logistics, marking Zenith’s entrance into the U.S. market.
About Zenith Energy
With headquarters in Houston, Zenith is an international liquids and bulk terminaling company that owns and operates over 16 million barrels of crude oil, petroleum products and vegetable oils storage in The Netherlands, Ireland and Colombia. Zenith is pursuing opportunities to buy, build and operate terminals primarily in Latin America, North America and Europe. The Company is focused on the storage and distribution for petroleum, refined products, natural gas liquids and petrochemicals, and expect to acquire and operate logistics and distribution assets that support terminals, such as pipelines, truck racks and barges. In August 2014, Warburg Pincus, a leading global private equity firm focused on growth investing, led a line-of-equity commitment in Zenith of up to $600 million. For more information, please visit www.zenithem.com.