3i Infrastructure is paying €111m for a 45% interest in Oiltanking Terneuzen B.V. in the Netherlands and Oiltanking Ghent N.V. in Belgium. The Oiltanking companies provide storage and related services for refined oil products, chemicals and biofuels. Both companies provide essential services and benefit from locations, facilities and operational capabilities that give them strong appeal to their customer base, which includes stockholding agencies, oil companies and traders.
Both terminals are located in the ARA (Amsterdam, Rotterdam, Antwerp) region in Europe, one of four global hubs for the oil industry. The region benefits from its proximity to North Sea oil production and European refinery capacity, its high quality ports infrastructure and its strong connectivity, via pipeline, road, rail and inland waterway, to European consumers of refined products.
Current oil market conditions have increased demand for storage capacity and, while these terminals are almost fully let, 3i Infrastructure says they are well placed to benefit as contracts are renewed.
3i Infrastructure already owns a 45% stake in three Oiltanking storage terminals in Amsterdam, Malta and Singapore that they bought in 2007. They need to get regulatory approvals before the deal can complete, including clearance from the European Commission under the EU Merger Regulation.
3IN : 3i Infrastructure buys Benelux oil tanking business