Vopak, the Rotterdam-based oil storage tank operator, Shell UK and Greenergy have signed a joint agreement for the purchase of the Coryton refinery, formerly run by the now insolvent Petroplus, to create the UK’s first deepwater fuel import terminal.
Following an agreement with the joint administrators of Petroplus, the existing facility will undergo major infrastructural changes to create a state-of-the-art import and distribution terminal.
“This investment will create the UK's first deepwater fuel import terminal, making it possible to bring in diesel economically from the most modern refineries anywhere in the world,” said Greenergy CEO Andrew Owens.
“With diesel sales continuing to grow ahead of petrol sales in the UK, this is a vital development to ensure a low cost and reliable fuel supply for the British motorist in the years ahead.”
The new terminal, will boast an initial handling capacity of 500,000m3. However, plans are in place to enable the facility to double its handling capacity in the future to 1 million m3.
“This move will provide a long-term, secure supply for our customers in the UK and will support the recent expansion of our retail network, delivering competitive supply chain costs,” added Shell UK Chairman, Graham van 't Hoff.
The three companies will hold an equal share in the joint venture.