SINGAPORE (ICIS)--A consortium of investors will take over a liquefied petroleum gas (LPG) and light oil products transshipment terminal at the sea port of Ust-Luga, Russia, owned by petrochemicals maker SIBUR in a deal worth over $700m.
The consortium is made up of the Russian Direct Investment Fund (RDIF) as well as a group of foreign investors and Russian bank Gazprombank. The RDIF is a $10bn fund established by the Russian government to make equity investments, primarily in the Russian economy.
As part of the deal, the consortium will gain full control over the terminal, which is “not only the largest in the Commonwealth of Independent States (CIS) but also the only LPG transshipment terminal in the Russian North-West”, SIBUR and RDIF said in joint statement.
Currently, the terminal operates at a nominal transshipment capacity of 1.5m tonnes/year of LPG and 2.5m tonnes/year of light oil products, they said.
SIBUR will have exclusive rights to utilise all of the LPG transshipment capacity.
Construction of the terminal as well as necessary rail and port infrastructure in Ust-Luga was completed by SIBUR in 2013.