Louis Dreyfus Highbridge Energy LLC (LDH Energy) has established a joint venture with Zhejiang Zhong Ao Energy Co Ltd (Zhong Ao) named Louis Dreyfus Zhong Ao Energy Co Ltd. The venture will construct an oil and petrochemical import/export terminal and storage facility in Zhoushan City, Liuheng Island, off the coast of Shanghai, People’s Republic of China .
The terminal and storage facility is expected to be developed over two phases. Phase I of the project involves the construction of a 1.4-million-barrel petrochemical storage facility and deepwater port with a 75-foot draft. Phase II of the project will add 7.5 million barrels of storage capacity for crude oil and petroleum products and associated expansion of and connectivity to the port. LDH Energy will be a minority partner in the joint venture providing commercial development expertise, and day-to-day operations will be managed by Zhong Ao.
The joint venture has received regulatory approval, and final formation is expected before year-end. White & Case acted as legal counsel to LDH Energy in connection with the transaction.