New JV to build new terminal and storage facility in China

Merchant energy company Louis Dreyfus Highbridge Energy and Zhejiang Zhong Ao Energy have set up a joint venture company that will be called Louis Dreyfus Zhong Ao Energy. The joint venture will build a storage facility with a capacity of 1.4 million barrels, as well as a deepwater port with a 75-foot draft in Zhoushan City, Liuheng Island. An additional storage facility will be constructed for phase II of the project, which will have a capacity of 7.5 million barrels for crude oil and petroleum products. LDH Energy, a minority partner in the joint venture, will contribute its knowledge of commercial development, while Zhong Ao will manage the operations.  “This transaction is core to our global growth strategy and is the first of several initiatives to expand our presence in the Asia Pacific region,” William Reed, president and CEO of LDH Energy said. (December 7, 2011)