A consortium of investors, made up of the Russian Direct Investment Fund (RDIF), a group of foreign investors and Gazprombank has come to an agreement on terms of an investment into a liquefied petroleum gas (LPG) and light oil products transshipment terminal.
This terminal is owned by the Russian petrochemical holding, SIBUR, in the sea port of Ust-Luga. The transaction amount of the investment is over US$700mln.
As part of the transaction, the consortium will gain complete control over the terminal, which is not only the largest in the CIS but also the only LPG transshipment terminal in the Russian North-West. It is also one of the most modern port infrastructure facilities on the Baltic Sea. The consortium’s investment will allow the terminal to optimise its capital structure and expand its capacity for both LPG and the wide range of light oil products it processes.
Construction of the terminal and the necessary rail and port infrastructure in Ust-Luga was completed by SIBUR in 2013. Currently the terminal operates at a nominal transshipment capacity of 1.5Mtpa of LPG and 2.5Mtpa of light oil products. Simultaneously, the terminal is undergoing optimisation of operational processes and expansion plans for all products transshipped at the terminal are currently in development. The terminal is a project of national importance and was constructed as part of the federal program for development of port capacities in the Russian North-West.
According to the agreement, SIBUR will have exclusive rights to utilize 100% of the LPG transshipment capacity on the pre-agreed terms. A joint venture between the investment consortium and SIBUR will comprise the operational management of the complex, which will retain all current staff.
This agreement is planned to be signed during St Petersburg International Economic Forum and the transaction will be closed after regulatory approvals are received.
Press Release, May 23, 2014