Oiltanking North America and Regen III have entered discussions to develop and operate a used motor oil re-refinery production facility at the Oiltanking Galveston County Terminal in Texas City, Texas.
Oiltanking's statement said this is an important milestone for both companies as ReGen’s Re-Refinery facility will provide much needed domestic supplies of base oils while recycling and reusing used motor oil in a sustainable way.
"Contributing to a sustainable future and establishing a circular economy is a key pillar for Oiltanking and ReGen III," the statement said.
The deal proposed will involve Oiltanking developing storage tanks; loading and unloading pipelines; rail and marine loading and unloading facilities; and other logistics assets. Oiltanking will effectively design, construct, operate, and maintain these assets to support the re-refinery, the statement said. Included in the deal will be a terminal services agreement, as well as a long-term ground lease for the re-refinery.
“The signing of the LOI with Oiltanking, allows [ReGenIII] to advance its primary re-refinery project in the US Gulf Coast. We are excited to be working with a company of Oiltanking’s scale and reputation," said Greg Clarkes, CEO of ReGen III.
"When one considers Oiltanking operates 45 terminals in 20 countries and our offtake relationship with bp, [ReGen] looks forward to identifying additional re-refining facility siting opportunities globally and enhancing our industry presence,” Clarkes added.
