The sponsors behind Vopak Moda Houston are evaluating final bids for a stake in the ammonia and hydrogen terminalling operator.
The sale process, led by Intrepid Financial Partners, reached the final round in recent weeks, with parties considering lofty valuations for a 50% stake sale, sources said.
Final bids were under discussion at valuation multiples of between 20x – 25x on EBITDA of $13m, the sources said, implying an enterprise value of between $260m – $325m.
Formed in 2016, Vopak Moda Houston is a 50/50 joint venture between Royal Vopak and Moda Midstream. Moda Midstream is a portfolio company of EnCap Flatrock Midstream.
Vopak, Moda Midstream, and Intrepid did not respond to requests for comment.
In 2021 the JV commissioned its deepwater dock at the Port of Houston. It has constructed storage and terminal infrastructure for industrial gas product lines, with the stated intention of becoming a premier hydrogen and low-carbon ammonia terminaling hub in the Gulf Coast.
While the $13m of EBITDA reflects current contracts at the hub, future expansion depends in part on the completion of a 1.1 MTPA blue ammonia plant proposed for the site by a consortium including Vopak Moda Houston, INPEX, and LSB Industries.
The production facility, which would also capture and sequester 1.6 million metric tons of CO2 annually, is currently in the pre-FEED phase. Executives from LSB recently said they expected to find offtake for the facility among Japanese and Korean power utilities.
Based on LSB’s feasibility study, the cost of the project would come in between $500m and $750m. The pre-FEED phase will last until 2Q24 followed by a one-year FEED period that would finish in 2Q25.
Netherlands-based Vopak recently reached a deal to sell three Rotterdam chemical terminals to infrastructure investor Infracapital.
