Inter Pipeline Fund said Monday it has signed a deal to buy four petroleum product storage terminals in Denmark from DONG Energy Oil Terminals. Calgary-based Inter Pipeline expects to close the deal in October, which includes a cash consideration of C$500 million ($489 million).
The Asnaes, Ensted, Stigsnaes and Gulfhavn storage terminals together have a total storage capacity of 10.7 million barrels and can accomodate Aframax and Suezmax vessels.
Some 90% of the four terminals' revenue is based on term storage contracts and 10% from throughput fees, blending and harbor fees, Inter Pipeline said in its statement.
"This acquisition more than doubles our storage capacity in Western Europe, while complementing Inter Pipeline's existing storage operations in the United Kingdom, Ireland and Germany," Inter Pipeline's President and CEO David Fesyk said.
DEOT is a subsidiary of DONG Energy, in which the Danish government owns 76.49%, SEAS-NVE Holdings 10.88%, SYD Energi Net 6.95% and others 5.68%.
