Dutch Vopak boosting LNG business

Dutch tank storage company Vopak aims to strengthen its presence as a service provider in the liquefied natural gas (LNG) infrastructure market, according to chief executive Eelco Hoekstra.

Together with joint venture partners, Gasunie and Enagas, Vopak currently operates two terminals – the Gate LNG terminal in the port of Rotterdam and Altamira on the east coast of Mexico.

Vopak said on Friday the company’s operating profit from its LNG activities amounted to 17.3 million euros in the first half of this year, which is an 8 percent rise compared to the prior year.

However, the company’s earnings before interest and tax (EBITDA) decreased by 6 percent to 394 million euros.

Vopak said earnings would drop 5 to 10 percent in 2017 due to, among other, lower occupancy rates of its tank terminals.

“Although our EBITDA is lower compared to last year, I am encouraged with the ongoing transition of our global portfolio,” Hoekstra said.

“While focusing our business development efforts more on projects related to chemical and industrial terminals, and terminals facilitating the global gas markets, including our ambitions to strengthen our presence as a service provider in the LNG infrastructure market, we are still pursuing oil related opportunities in emerging countries,” he said.

Worth mentioning, European Commission has last month approved an LNG joint venture consisting of Vopak, Gasunie and Oiltanking. The trio aims to build a multi-service LNG terminal, including import and small-scale services in Northern Germany.

Also earlier this year Belgium’s Exmar and Vopak said that the planned transaction under which Exmar would sell its FSRU business to the Dutch company will not continue.

LNG World News Staff