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Royal Vopak has confirmed that it has reached a long-term agreement with Chevron to manage and operate for Chevron its existing 509,000-cubic-metre (cbm) terminal in Panama.

Chevron will continue to be the owner of the terminal. Vopak's operatorship is expected to start in the third quarter of 2016.

Next to this agreement with Chevron, the key regulatory approvals have been obtained for the development of a first phase 360,000-cbm independent oil terminal, owned by Vopak, in Bahia Las Minas at the same location. A long-term contract has already been signed for part of this new capacity.

The project entails, in addition to the new tankage, complementary marine infrastructure, including jetties to handle ships of up to 80,000 dwt. The construction is expected to take around 24 months and to start when the associated local construction permits are obtained in the coming months.

The location in Bahia las Minas, Panama, is strategically situated at the crossroads of international trade and transportation routes for refined products. It is very well located to serve the international refined products markets in the Panama region, and to serve the expected increasing bunkering needs resulting from the expansion of the Panama Canal.