Jan 6 2016
Enviva Partners, LP (NYSE:EVA) has announced it has acquired the fully-contracted 510 000 t/y Southampton plant from its sponsor’s joint venture Enviva Holding with affiliates of John Hancock Life Insurance Company.
Acquired Southampton plant and 10-year take-or-pay off-take contract for $131 million
Increased production capacity to 2.2 million metric tons per year
Extended weighted average remaining term of off-take contracts to 8.0 years
The Southhampton acquisition includes the fully operational 510,000 metric tons per year wood pellet production plant in Southampton County, Virginia, a ten-year 500,000 MTPY take-or-pay off-take contract (385,000 metric tons in the first year), and a matching ten-year shipping contract. With this transaction, the Partnership’s production capacity increases 29 percent to 2.2 million MTPY and, together with the ten-year take-or-pay off-take contract announced on December 8, 2015, the weighted average remaining term of its off-take contracts extends significantly to 8.0 years.
“We are excited to announce our first drop-down transaction with our sponsor. The fully-contracted Southampton plant is a world-class facility that fits seamlessly into our core business and will significantly increase our production capacity and the tenor of our contracted cash flows,” said John Keppler, Chairman and Chief Executive Officer of Enviva partners LP.
Enviva Partners LLC now has six pellet production units and three port facilities and Enviva Wilmington Holding has one production plant under construction and also one port facility under construction.
Enviva family pellet facilities
Enviva Partners, LP
- Wiggins, MS
- Amory, MS
- Ahoskie, NC
- Northampton, NC
- Cottondale, FL
- Southampton, VA
- Port of Chesapeake, VA
- Port of Mobile, AL – Long term lease
- Port of Panama City, FL – Long term lease
Enviva Wilmington Holdings, LLC