Oiltanking North America is to work with the cleantech company ReGen III to develop and operate logistics for its used motor oil re-refinery production facility.
The Re-Refinery facility will be based at the Oiltanking Galveston County Terminal in Texas City, Texas.
The letter of intent (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:
- 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.
Jerry Hardman, vice-president of business development at Oiltanking North America said: “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.”
As one of the largest independent tank storage providers for gases, chemicals and petroleum products worldwide, the Oiltanking is successfully active in the engineering, procurement and construction of tank terminals. At this particular site, Oiltanking’s Galveston County Terminal, Oiltanking handles specialty chemicals and petrochemicals with more than 87,000 cbm of storage capacity on over 200 acres providing ample room for expansion opportunities.
The LOI is subject to customary conditions, including completion of due diligence and related corporate approvals from each of Oiltanking and ReGen III.
For more information visit: www.oiltanking.com