Oiltanking signs LOI with ReGen III’s re-refinery facility
Oiltanking, one of the largest independent tank storage providers for gas, chemicals and petroleum products worldwide, has signed a non-binding letter of intent to develop and operate the logistics assets of ReGen III’s re-refinery facility in Texas, U.S.A.
The re-refinery will be based at the Oil tanking Galveston County Terminal in Texas City.
The LOI is an important milestone for both companies as ReGen’s re-refinery facility will provide much needed domestic supplies of base oils while recycling and reusing used motor oil in a sustainable way.
The LOI outlines the following:
- Oiltanking developing storage tanks, loading and unloading pipelines, rail and marine loading and unloading facilities and other logistics assets. Oiltanking will effectively design, construct, operate, and maintain these assets to support the re-refinery;
- Oiltanking and ReGen III entering into a Terminal Services Agreement; and
- Oiltanking and ReGen III entering a long-term ground lease for the re-refinery.
Oil tanking Galveston County Terminal in Texas City handles specialty chemicals and petrochemicals with more than 87,000 cbm of storage capacity on more than 200 acres, providing ample room for expansion opportunities.
“The partnership with ReGen III is proof of Oiltanking’s ambition to actively shape the energy transition towards a circular and sustainable economy. With our high-quality engineering capabilities and our flexible, agile way of working, we are well equipped to support ReGen III by building and operating the storage and logistics assets associated with the re-refinery facility at the US Gulf Coast,” said Jerry Hardman, vice president, Business Development at Oiltanking North America.
“The signing of the LOI with Oiltanking, allows the company to advance its primary re-refinery project in the U.S. Gulf Coast. We are excited to be working with a company of Oiltanking’s scale and reputation,” said Greg Clarkes, ReGen III CEO.
The LOI is subject to customary conditions, including completion of due diligence and related corporate approvals from each of Oiltanking and ReGen III.