Dutch tank storage company Royal Vopak has announced the doubling of its investment target for expanding its gas and industrial footprint, committing an additional €1bn through 2030.
This brings its total planned investment in this sector to €2bn, with €1bn already committed.
Most of the investments will be focused on gas infrastructure for energy security and affordability, with a significant share directed to growth markets such as India and China.
Furthermore, the investments will support the company’s long-term and steady cash flow generation.
Royal Vopak CEO Dick Richelle said: “Building on our proven track record of strategic execution, we have delivered an improved cash return and committed €1bn capex target to grow in industrial and gas terminals, reaching our target ahead of schedule. This positions Vopak with confidence to capture additional growth opportunities in gas and industrial infrastructure as well as infrastructure for the energy transition.
“We see market opportunities to invest an additional €1bn in gas and industrial terminals, and we are reconfirming our ambition to invest €1bn to accelerate towards energy transition infrastructure by 2030. We remain dedicated to delivering sustainable and increasing shareholder returns via a progressive dividend distribution and will evaluate a share buyback program on a yearly basis.”
Vopak has also reaffirmed its plan to allocate €1bn to energy transition infrastructure, supporting the shift towards sustainable energy solutions.
The company will focus on developing infrastructure for low-carbon fuels, renewable feedstocks, ammonia as a hydrogen carrier, liquid CO₂ storage and battery energy solutions.
Vopak intends to convert portions of its existing oil storage capacity at key hub locations to accommodate low-carbon fuels and sustainable feedstocks.
In May 2024, Vopak, in partnership with Canadian infrastructure company AltaGas, reached a final investment decision on the Ridley Island Energy Export Facility in British Columbia, Canada.
The C$1.35bn ($1bn) project will expand energy export capacity and is expected to be operational by the end of 2026.
