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Shell, Vopak and Greenergy convert Coryton refinery into Thames Oil Port terminal

Shell to increase diesel import capacities in UK 

The consortium made of Greenergy International Ltd (Greenergy), Royal Vopak (Vopak) and Shell completed the acquisition of the assets of the Coryton refinery in UK to build and operate a state-of-the-art import terminal for oil products.

The transaction was closed with PwC acting as the administrator of Petroplus Refining & Marketing Ltd (PRML).

For months PwC and PRML  management were looking for a solution to preserve the activity in Coryton refinery but the $1 billion capital expenditure to take it over and turn it around appeared prohibitive to potential incoming investors.

In this context, the conversion of the refinery into fuel storage terminal for import and distribution in UK appeared as realistic opportunity.

UK, as most the other European countries, had too many refineries compared to their consumption in number of barrels per day.

But the scope of oil products delivered by these old refineries does not match with actual markets needs so that UK as the other European countries must import some fuels, such as diesel, falling short in the local production.

As in the Coryton example, the capital expenditures to convert these old refineries to the demand and to align them on the new standards refrain such revamping operations.

Instead, Coryton refinery location at the mouth of the Thames river is perfect to accommodate a large fuel storage facility.

In this purpose, the consortium of Shell, Greenergy and Vopak acquired the assets of the refinery and established a joint venture to carry on their Thames Oil Port terminal project to be developed on the site.

Vopak to build and operate Thames Oil Port terminal

In this joint venture, Shell, Greenergy and Vopak, will be equal partners with Vopak taking the operatorship.

In UK, Shell is deploying its marketing and retail distribution network for which he needs the supply of the whole portfolio of oil products.

In parallel to its partner position in the joint venture, Shell signed a long term contract with the joint venture to  use the Thames Oil Port terminal as import storage and distribution facility.

Greenergy is the largest provider of transportation fuel in UK with 25% market share of the local road fuel distribution.

With storage and transportation infrastructures, Greenergy supplies petrol diesel and biofuel to gas stations and supermarkets for major oil companies and independents.

Greenergy also signed a long term agreement with the joint venture to use the Thames Oil Port terminal when constructed

Based in Rotterdam, Vopak is a global services provider for storage and handling of oil and gas and petrochemical products.

Running already 84 terminals in the world, Vopak will be the operator of the Thames Oil Port terminal project for the engineering and construction phase, then to lead the commercial operations when completed.

In a first phase, Greenergy, Shell and Vopak are designing the Thames Oil Port terminal to have a capacity of 500,000 cubic meters with the opportunity to reach 1 million cubic meter in a second phase

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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