Royal Vopak has signed a long-term agreement with Chevron Corp., one of the world’s leading integrated energy companies, to manage and operate for Chevron its existing 509,000 cbm terminal in Panama. Chevron continues to be the owner of the terminal. Vopak’s operatorship is expected to start in the third quarter.

Next to this agreement with Chevron, the key regulatory approvals have been obtained for the development of a first phase 360,000 cbm independent oil terminal, owned by Vopak, at Bahia Las Minas at the same location. A long-term contract has already been signed for part of this new capacity.

The project entails, in addition to the new tankage, complementary marine infrastructure, including jetties to handle ships of up to 80,000 dwt. The construction will take approximately 24 months and will start when the associated local construction permits are obtained in the coming months.

The location in Bahia las Minas, Panama, is strategically situated at the crossroads of international trade and transportation routes for refined products. It is very well located to serve the international refined products markets in the Panama region, and to serve the expected increasing bunkering needs resulting from the expansion of the Panama Canal.

With its presence in Panama, Vopak strengthens its leading position at strategic locations along the major global shipping routes.

Royal Vopak is the world’s leading independent tank storage provider for the oil and chemical industry, operating 66 terminals in 24 countries with a combined storage capacity of 33.6 million cbm, with another 4.9 million cbm under development, to be added by 2019.