A new player in the midstream sector is getting a major vote of confidence in the form of a $750 million investment.
Moda Midstream LLC, a liquids terminaling and logistics provider, announced March 17 that it secured the initial equity commitment from private equity firm EnCap Flatrock Midstream and the Moda management team.
Moda was formed earlier this year to provide independent terminaling, storage and distribution solutions to refiners, petrochemical manufacturers, marketers and producers of crude oil, condensate, natural gas liquids (NGLs), refined products and other bulk liquids. Moda’s expertise includes deepwater vessel loading and unloading, storage, blending, processing and pipeline operations. The company is focused on developing safe, reliable solutions that offer flexible, multimodal connectivity and provide the optionality customers value, according to a company statement.
Four founding partners lead Moda Midstream and share a history of working together in the industry. The team includes Ken Owen as president and CEO, Bo McCall as senior vice president of commercial and business development, Jon Ackerman as senior vice president and chief financial officer and Javier del Olmo as senior vice president and chief operating officer. Moda’s founding partners have more than 70 years of combined energy industry experience and previously worked together as members of the executive team at Oiltanking North America LLC and its publicly traded affiliate Oiltanking Partners LP.
“There continues to be strong demand for North American bulk liquids storage infrastructure, particularly for facilities that have excellent import-export deepwater capabilities and pipeline, truck and rail connectivity,” Owen said. “EnCap Flatrock’s long-term commitment gives us the financial flexibility we need to build an integrated logistics platform through greenfield projects and asset acquisitions.”
EnCap Flatrock managing partner Billy Lemmons said the two companies “share a common vision” and that the partnership allows the company to “create value in the liquids storage and terminaling side of the midstream business.”EnCap Flatrock, investment, Moda Midstream