Liquids terminalling and logistics provider Moda Midstream, LLC yesterday announced it has entered into a definitive agreement to acquire the Oxy Ingleside Energy Center (IEC) and certain crude oil and LPG infrastructure from Occidental Petroleum Corporation. The transaction is expected to close in 3Q18, subject to customary closing conditions. IEC is a storage and export terminal that provides access to global markets for crude oil and LPG producers and marketers.
IEC is strategically located in Ingleside, Texas, near the mouth of Corpus Christi Ship Channel with minimal transit times to the Gulf of Mexico. The terminal links Eagle Ford Shale and Permian Basin production to key domestic and international markets. IEC will be connected directly to multiple ‘next generation’ long-haul crude pipelines that allow for batching and segregation of crude oil deliveries at some of the most competitive tariffs available to shippers. IEC is designed to handle a wide range of vessels, including very large crude carriers (VLCCs), at high loading rates to maximise shipping economics for its customers. IEC has approximately 2.1 million bbls of oil storage capacity and three deepwater berths for crude oil. The facility currently is undergoing expansion to add storage capacity and infrastructure for contracted customer growth and to facilitate additional development. IEC has ample footprint for additional expansion opportunities at the 900 acre site.
As part of the transaction, Moda also acquired LPG storage, berths and infrastructure, certain crude oil pipeline assets and offsite logistics locations. Looking forward, Moda plans to expand services through controlled-growth development for additional hydrocarbons expected to reach IEC in the coming years.
Established in 2015, Moda provides independent terminal, storage and distribution solutions to marketers and producers of crude oil and condensate, refiners, petrochemical manufacturers, LPGs, refined products and other bulk liquids. Moda currently is developing two world-class liquids terminalling projects in other top tier markets in the US Gulf Coast. The company is focused on providing safe, reliable solutions for third parties’ storage and transportation needs. Moda is partnered with equity capital provider EnCap Flatrock Midstream and led by a highly-experienced management team. Moda’s founders have a long and successful history of working together in the storage and terminalling industry. Their assembled team has more than 130 years of cumulative experience in terminal logistics, marketing, engineering, operations and finance.
“We are excited to have the opportunity to continue building on Occidental’s vision of the Ingleside Energy Center as a premier export terminal in the US Gulf Coast. We see enormous growth potential and look forward to providing exceptional service to our existing and new customers for years to come,” said Moda President and CEO Bo McCall. “The acquisition is a milestone achievement for Moda and is a significant leap forward in realising our vision to build a leading independent terminalling company with a deep presence in the US Gulf Coast. We look forward to bringing our disciplined, safety-first operations approach and creative commercial mindset to IEC. We value strong customer and partner relationships, while providing a safe environment for our associates and the local communities in which we operate.”
“Moda has an outstanding team that is very well-known and respected across the industry,” said EnCap Flatrock Midstream Managing Partner and Founder Billy Lemmons, also a member of the Moda board of directors. “We are very enthusiastic about this acquisition and look forward to working with Moda on the growth of this uniquely positioned terminal asset.
Read the article online at: https://www.tanksterminals.com/terminals/09082018/moda-midstream-to-acquire-oxy-ingleside-energy-center-from-occidental-petroleum/