VTTI and ENNA sign agreement on a joint investment into the Port of Ploče
Zagreb, October 31 2016 - This is one of the largest private investment projects in the Republic of Croatia which is estimated to be worth 135 million euros. ENNA completed the first stage by investing 170 million kunas over the past 18 months.
VTTI, a global independent operator for energy supply storage and Energia Naturalis Holding (ENNA) signed a deal by which VTTI gains a 70 per cent share in the Adriatic Tank Terminal (ATT) in the Port of Ploče, the main Adriatic deep-water port. VTTI and ENNA will jointly expand and manage the newly-constructed terminal in the Port of Ploče. The execution of this transaction depends on whether the final preconditions are met, and this includes regulatory conditions. VTTI will manage the newly-constructed capacities with tanks for white (clean) petroleum products (CPP) and it will build and manage additional capacities, along with significant new capacity for the storage of liquefied petroleum gas using the most modern technology.
The first stage of ATT has already been completed: in September 2016 the construction of white petroleum products storage with a capacity of 50,000 cubic metres was completed. The second stage of construction will ensure a capacity of more than 200,000 cubic metres for petroleum, as well as 60,000 cubic metres for the storage of liquefied petroleum gas. This is the largest new project for the storage of liquefied petroleum gas in the heart of the Adriatic. In future, additional space should enable the third stage of the project that would provide additional storage capacity of at least 100,000 cubic metres for petroleum products.
Good news for the region
This growing terminal will play an important strategic role in strengthening the security of energy supply to the region. Furthermore, it will supplement the primary location and the deep-water are of the Port of Ploče with significant additional storage capacity for white petroleum products and liquefied petroleum gas.
The terminal will meet the highest safety standards and use fire-prevention technologies and technologies for processing hydrocarbon fumes that are in line with the latest global and European regulations with respect to safety and environmental protection.
Rob Nijst, president of the Board of VTTI, said: “It is a great pleasure for VTTI to enter the Adriatic market with the support of our partner in this joint venture. The facility will promote trade in energy in the region by providing a safe and efficient terminal. The town of Ploče and the region will develop at an even faster pace in the future, and we are here to provide it with support in this endeavour.
Pavao Vujnovac president of the Board of ENNA, said: “We are pleased that we have brought to Croatia a reliable and strong partner with whom we are cooperating exceptionally well. We will jointly work on developing the potential of the Port of Ploče as a strong Mediterranean port. Through this investment, just like in the case of other investments, we are promoting the development of Croatian resources in order to establish influence in the region and improve the quality of life in the community where we operate.”
The distribution of petroleum products through the terminal in Ploče will ease the limitations linked with the distribution of petroleum products and liquefied petroleum gas (LPG) for the entire region and will significantly contribute to the independence in energy supply of the Republic of Croatia. After completion, the new terminals will enable a cheaper and safer import of petroleum products and liquefied petroleum gas by sea, as well as the distribution of petroleum products to numerous markets in South-East Europe.
The arrival of a partner like VTTI to Croatia is a clear signal to the largest international investors that they can find serious partners and enter into large projects in Croatia.
The construction of a modern port will be a motor for the development of the entire surrounding area, and new employment opportunities and new projects will create a perspective for future development.
You can view the web page of the joint venture here:www.adriatictankterminal.com
. There you will find a very interesting and informative video that explains the project.
The Port of Ploče is one of the most important strategic deep-water ports in the central Adriatic. Its excellent transport links and favourable strategic geographic location make it a natural hub, thus enabling effective links between the Adriatic, the Mediterranean and Central Europe.
Construction is underway for a deep-water dock that will allow larger ships to dock, thus opening up the Adriatic market to global energy trade.
ATT – excellent links
ATT is directly linked with pan-European corridors, and it links all important destinations in the Balkan region, while at the same time enjoying links with the national motorway network. Furthermore, ATT is linked with the international railway network, thus opening up the hinterland in the Balkans (namely, Bosnia and Herzegovina, Serbia and beyond).
VTTI is a rapidly growing independent operator for energy supply storage all over the world. The company was founded in 2006, and today it holds 8.7 million cubic metres of combined storage capacity on five continents. This capacity will increase in future since new projects are underway.
Energia Naturalis (ENNA) is a holding company that invests in the sectors of energy supply, infrastructure and logistics. Companies in the group operate in countries in Central and Eastern Europe.
ENNA owns some 20 companies, the most notable of which are clustered in the PPD Group and deal with the trade, distribution and supply of natural gas. The company owns 25 per cent of the shares of the Port of Ploče.