Liquid storage company Exolum announced Dec. 13 that it entered into an agreement to purchase a 50% interest in Moda Midstream’s ammonia and NGL storage facility and export terminal. The value of the offer was not disclosed.
The terminal is located on the Houston Ship Channel. The facility, Vopak Moda Houston (VMH), is the only waterborne ammonia terminal on the Houston Ship Channel with a very large gas carrier-capable deepwater berth that’s connected to the Port of Houston’s petrochemical complex via pipeline.
Ammonia is a possible alternative fuel as it releases few greenhouse gases as it burns.
The acquisition of VMH is part of Exolum’s diversification strategy, the company said in a statement.
“Exolum strives to become a key player in the development of supply chains for new sustainable energy products, such as ammonia and green methanol,” said Exolum CEO Jorge Lanza. “This operation, our first in the U.S., will enable us to continue strengthening our position in strategic ports and to promote the energy transition and the decarbonization of mobility at an international level.”
The transaction is subject to regulatory reviews and approvals and is expected to close in the first quarter of 2024, the announcement said.
Recommended Reading
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
CEO: Magnolia Hunting Giddings Bolt-ons that ‘Pack a Punch’ in ‘24
2024-02-16 - Magnolia Oil & Gas plans to boost production volumes in the single digits this year, with the majority of the growth coming from the Giddings Field.
Endeavor Integration Brings Capital Efficiency, Durability to Diamondback
2024-02-22 - The combined Diamondback-Endeavor deal is expected to realize $3 billion in synergies and have 12 years of sub-$40/bbl breakeven inventory.
Patterson-UTI Braces for Activity ‘Pause’ After E&P Consolidations
2024-02-19 - Patterson-UTI saw net income rebound from 2022 and CEO Andy Hendricks says the company is well positioned following a wave of E&P consolidations that may slow activity.