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Moda snatches up IEC from Occidental
Posted on Thursday, 09 August 2018 15:00
Moda Midstream has announced it is buying Occidental Petroleum’s Oxy Ingelside Energy Center (IEC), along with its liquefied petroleum gas (LPG) and crude oil infrastructure, for an undisclosed sum.
Subject to customary closing conditions, the deal is expected to complete in the third quarter of 2018.
Under the terms of the transaction, Moda will also acquire the target’s LPG storage, berths and other assets including its offsite logistics locations.
Headquartered in Texas, near the mouth of the Corpus Christi Ship Channel, IEC provides the ideal strategic location for Moda to implement a premier export terminal in the Gulf Coast.
The target will be interconnected to key international markets through terminals such as the Eagle Ford Shale and Permian Basins, as well as to long-haul crude pipelines that batch and deliver crude oil at a competitive price.
Moda will also benefit by gaining access to IEC’s oil storage capacity; the terminal is able to hold up to 2.10 million barrels and has three deep-water berths for crude oil.
It can also handle a variety of vessels, such as very large crude carriers (VLCCs) with high loading rates that increase the economic value of shipping for clients.
IEC also brings to the purchase a 900-acre site, currently under development, which could add further storage capacity and with it, customer growth.
Formed in 2015, Moda is a liquids terminaling and logistics business that specialises in providing independent terminaling, storage and distribution to refiners, manufacturers and producers of crude oil and other liquids.
It has operations across the US, as well as internationally, with sites in Canada, the Caribbean and Mexico.
Moda’s range of services include deepwater vessel loading and unloading, storage, processing and blending, among others.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 674 deals targeting oil and gas extraction providers announced worldwide since the beginning of 2018.
Energy Transfer Equity agreed to buy Energy Transfer Partners in the largest of these deals, for USD 25.29 billion.
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