Exolum Secures 50% Stake in Houston Ammonia Storage Terminal

On December 13, 2023, Exolum, a prominent global player in liquid product storage and logistics, unveiled its definitive agreement to acquire a 50% interest in Vopak Moda Houston LLC (VMH), an ammonia storage, import, and export terminal situated on the Houston Ship Channel. The deal involves acquiring Moda Midstream LLC's stake in VMH, marking a significant move in Exolum's diversification strategy and positioning the company as a leading manager of infrastructure for decarbonizing fuels.

Vopak Moda Houston (VMH) operates as a joint venture, with Moda Midstream and Vopak Terminals North America each holding a 50% stake. The terms of the transaction were not disclosed, but this acquisition aligns with Exolum's commitment to becoming a key player in developing supply chains for sustainable energy products, such as ammonia and green methanol. This strategic investment serves as a pivotal platform for Exolum's expansion in the U.S. and facilitates the acquisition of crucial competencies in developing logistics infrastructures essential for the ongoing energy transition and the promotion of low-carbon fuels.

Moda Midstream's President & CEO, Jonathan Ackerman, expressed pride in the collaboration that transformed a greenfield site into a cutting-edge liquids terminal in the Port of Houston. Ackerman anticipates Vopak Moda Houston's continued growth and pursuit of global opportunities with Exolum as its new partner.

Maria Ciliberti, Vopak President US and Canada, welcomed Exolum as a co-shareholder, emphasizing the synergies that can be achieved by combining knowledge, networks, and experience. The worldwide movement toward decarbonizing industry and transportation is expected to drive robust global demand for low-carbon ammonia, positioning VMH strategically to play a critical role in the energy transition.

Vopak Moda Houston holds a unique position as the sole waterborne ammonia terminal on the Houston Ship Channel equipped with a Very Large Gas Carrier (VLGC)-capable deepwater berth. Linked through pipelines to the Port of Houston's petrochemical complex, the largest in the U.S. and the second largest globally, VMH currently provides storage services for ammonia and natural gas liquids (NGL).

The facility's advantageous location, expansive export capabilities, seasoned management, and substantial undeveloped acreage offer new avenues for growth and development. In October 2023, VMH announced plans to construct a large-scale, low-carbon ammonia export facility in collaboration with INPEX Corporation, Air Liquide Group, and LSB Industries, Inc. Ammonia's role in decarbonization is anticipated to increase across various sectors, including power generation, heavy industry, marine fuel, and other mobility methods.

With its cutting-edge armonia terminal infrastructure and strategically positioned workforce on the Houston Ship Channel, VMH is poised to emerge as the leading hydrogen and low-carbon ammonia hub on the U.S. Gulf Coast. This positions VMH to play a pivotal role in accelerating global energy decarbonization, thanks to its capabilities in safely and reliably storing and transporting ammonia and other pressurized gases.