US$100 million terminal upgrade investment for Prostar
Prostar Capital has announced it will invest up to US$100 million to expand and upgrade the operating capacity of its newly-aqcuired GTI Statia (GTIS) storage terminal, “to meet demand from new and existing customers”.
The plan involves the investment of up to US$100 million over the next two years on tank upgrades, jetty and marine infrastructure improvements, which will allow GTIS to continue to operate at the highest safety standards and provide superior service to its customers, it said in a statement.
Steve Bickerton, Senior Managing Director of Prostar Capita, said: “These improvements are a critical component of our investment rationale and will allow us to modernise the terminal while continuing to provide outstanding customer service and deliver attractive returns for our investors.
Prostar said it is now executing its capital investment plan for the terminal, “which is driven by demand from new customers to capitalise on emerging regional and global trends in the oil market”.
Since Prostar acquired GTIS from NuStar Energy LP in July 2019, its focus has been on “ensuring the continuation of high-quality service to customers”, which include some of the world’s largest oil producers and traders. GTIS is one of the largest independent crude and refined product storage terminals serving the US Gulf Coast, Latin American and Caribbean markets.
To manage the expansion, Prostar has put an experienced senior team in place, including Walter Wattenbergh, (previously CEO of LBC Tank Terminals), as Chairman of GTIS, and John Roller, (previously of NuStar), as President and CEO.
The upgrades will further GTIS’s role as a major provider of make- and break-bulk services to customers looking to move crude oil by VLCC in and out of the US Gulf Coast as well as to end markets in the Asia-Pacific. The improvements will also allow GTIS to continue to provide bunkering services to cruise and cargo customers throughout the Caribbean. The capital investment plan aims to improve infrastructure flexibility, a critical factor for storage operators in enabling the transition to low-sulphur marine fuel dictated by new IMO 2020 regulations.
John Roller, President and CEO of GTI Statia, said: “Our plan allows the facility to focus on being a leading terminal operator and will leverage our strategic vision to enhance the service, quality and value of the business. We are committed to the long-term success of the facility.”
For more information visit www.prostarcapital.com
6th March 2020