Unimot Group has leased LPG terminal in Wilhelmshaven, Germany

Date of publication: 23.05.24

Unimot Paliwa, a part of the Unimot Group, has concluded a contract for the handling and storage of LPG with HES Wilhelmshaven Tank Terminal GmbH based in Germany. Unimot Group is preparing for the implementation of sanctions on Russian LPG in December 2024. The contract for leasing LPG storage capacity is accompanied by a contract for leasing diesel storage capacity.

“Securing a steady supply of LPG was the first objective for the LPG segment in our 2024–2028 strategy. We accomplished this goal by building a new logistics channel that allows LPG to be purchased from various destinations, and the contract concluded with HES Wilhelmshaven Tank Terminal one month after the strategy was announced is proof that we have been consistently implementing this objective. The leasing of the terminal in Wilhelmshaven, Germany, enables us to get ready for the imposition of sanctions on Russian LPG, which will take effect as early as this December. The leased terminal is equipped with all the necessary infrastructure to ship the product straight to Poland via rail, and the port next to it can handle gas carriers with twice the capacity of our Polish ports” – says Robert Brzozowski, Vice-President of the Management Board for Commercial Affairs of Unimot.

The contract between Unimot Paliwa and HES Wilhelmshaven Tank Terminal GmbH covers the unloading and storing of about 8,000 tonnes of LPG. The contract is concluded for a definite period of 48 months, starting on 1^st October 2024, with a 24-month extension option. Unimot Group has estimated that the contract for the first period of LPG storage capacity lease in Wilhelmshaven is worth PLN 120 million.

In addition, Unimot Group and HES have agreed on the key provisions of a new contract governing diesel handling and storage. A minimum of 78,000 cubic meters of diesel storage capacity is ensured. The parties intend to conclude an 18-month diesel contract with the option to extend it by an additional 12 months, beginning on 1^stJuly 2024. The estimated value of this future contract is PLN 15 million.

“We would like to take advantage of the possibility provided by the Wilhelmshaven terminal to expand our product offerings. It should be noted that we started leasing the Danish terminal in April 2022. However, as we are terminating our cooperation with the Danish diesel terminal after two years of leasing, this is a great substitute that will allow us to transport the product exclusively by sea. The Gulfhavn terminal was the perfect solution during uncertain times following Russia’s attack on the independent Ukraine. However, the Wilhelmshaven terminal offers us more flexibility and, similar to LPG, the possibility of transporting diesel from Germany by rail and road to Poland” says Robert Brzozowski.

The LPG contract and future diesel contract should be treated jointly, with both taking effect at the same time when the last contract is signed.