Oiltanking signs LOI with ReGen III for re-refinery facility in Texas, US
Published by Pippa Luck,
Tanks and Terminals,
Oiltanking North America LLC (Oiltanking) has announced it has entered into a non-binding Letter of Intent (LOI) with ReGen III Corp. (ReGen III) to develop and operate logistics for ReGen’s used motor oil re-refinery production facility (the ‘re-refinery’). The re-refinery facility will be based at the Oiltanking Galveston County terminal (OTGALt) in Texas City, Texas, US.
Contributing to a sustainable future and establishing a circular economy is a key pillar for Oiltanking and ReGen III. The LOI is an important milestone for both companies as ReGen’s re-refinery facility will provide much needed domestic supplies of base oils while recycling and reusing used motor oil in a sustainable way.
The LOI outlines:
- Oiltanking developing storage tanks, loading and unloading pipelines, rail and marine loading and unloading facilities and other logistics assets. Oiltanking will effectively design, construct, operate, and maintain these assets to support the re-refinery.
- Oiltanking and ReGen III entering into a terminal services agreement.
- Oiltanking and ReGen III entering a long-term ground lease for the re-refinery.
Oiltanking is well equipped to support ReGen III with tailor-made infrastructure solutions. As one of the largest independent tank storage providers for gases, chemicals and petroleum products worldwide, the company is successfully active in the engineering, procurement and construction (EPC) of tank terminals. At OTGAL, Oiltanking handles specialty chemicals and petrochemicals with more than 87 000 m3 of storage capacity on over 200 acres providing ample room for expansion opportunities.
Jerry Hardman, Vice President, Business Development at Oiltanking North America, stated: “The partnership with ReGen III is proof of Oiltanking’s ambition to actively shape the energy transition towards a circular and sustainable economy. With our high-quality engineering capabilities and our flexible, agile way of working, we are well equipped to support ReGen III by building and operating the storage and logistics assets associated with the Re-Refinery facility at the US Gulf Coast. We look forward to working with ReGen III to further develop the project and supporting their re-refinery ambitions leading to a more sustainable future.”
Greg Clarkes, Chief Executive Officer of ReGen III, stated: “The signing of the LOI with Oiltanking allows the company to advance its primary re-refinery project in the US Gulf Coast. We are excited to be working with a company of Oiltanking’s scale and reputation. When one considers Oiltanking operates 45 terminals in 20 countries and our offtake relationship with bp, we look forward to identifying additional re-refining facility siting opportunities globally and enhancing our industry presence.”
The LOI is subject to customary conditions, including completion of due diligence and related corporate approvals from each of Oiltanking and ReGen III.
Read the article online at: https://www.tanksterminals.com/storage-tanks/07072021/oiltanking-signs-loi-with-regen-iii-for-re-refinery-facility-in-texas-us/
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