Odfjell Terminals has signed an agreement with Founder Group to acquire 50% interest in its Fujian Fangtong Terminals Company and form a joint venture (JV) to build a new petrochemical tank terminal in Quanzhou, Fujian Province, China.

As per the terms of the agreement, Odfjell will buy the equity for a consideration of $21m, including land and an existing jetty.

The new Odfjell Terminals Fujian (Quanzhou) Company has 14.8ha of land available to build 184,000cbm of total storage capacity terminal supported by two jetties (5,000 dwt and 100,000 dwt).

In addition, the JV also has an option to acquire an additional 23ha of adjacent land to expand the storage capacity of the facility by 400,000cbm.

Odfjell Terminals Fujian (Quanzhou) is planned to begin operations by first quarter of 2016.

The new petrochemical tank terminal will be built at a planned investment of $137m in the Quangang Industrial Zone at the mainland side of the Taiwan Strait, at the south side of Meizhou Bay, which will be managed and operated by Odfjell.

The technical design review and engineering scope are in progress, while the basic design has to be completed for project tender by end of 2013.