Aegis Vopak Terminals Limited has entered into a Framework Agreement with Aegis Logistics Limited to construct an additional refrigerated double steel wall, full containment propane storage tank. The project, located at the Jawaharlal Nehru Port Authority (JNPA) tank farm, will have a capacity of 51,998 MT. The total payment for this agreement is INR 1,42,50,00,000/-, with an Asset Transfer Agreement to be executed upon project completion.
Framework Agreement for New Propane Storage Capacity
Aegis Vopak Terminals Limited has announced the execution of a significant Framework Agreement with Aegis Logistics Limited. This agreement marks the company’s intent to engage Aegis Logistics for the construction and development of a substantial new infrastructure asset.
Project Details and Capacity
The project involves the creation of an additional refrigerated double steel wall, full containment, insulated with a suspended deck storage tank. This new tank is specifically designed for storing propane and will have a considerable capacity of 51,998 MT. The allied facilities necessary for the operation of this tank will also be developed as part of this agreement. The terminal is strategically located at the Jawaharlal Nehru Port Authority (JNPA) tank farm area.
Financial Commitment and Future Steps
Under the terms of the Framework Agreement, Aegis Vopak Terminals Limited is set to pay a sum of INR 1,42,50,00,000/- (Indian Rupees One Hundred Forty-Two Crores and Fifty Lakhs only) upon the execution of this agreement. Following the completion of the construction project, the company will separately execute an Asset Transfer Agreement with Aegis Logistics Limited.
Relationship with Aegis Logistics Limited
It is noted that Aegis Logistics Limited is a promoter company of Aegis Vopak Terminals Limited, indicating a related party transaction that is stated to be conducted on an arm’s length basis.
Source: BSE
