* Greenergy acquires Vopak's Coryton stake
* Forms JV with Macquarie Capital for UK storage
* Bumper year for refiners will slow capacity closures (Adds comment on refineries outlook)
By Ron Bousso and Libby George
LONDON, Dec 21 (Reuters) - The Thames Oilport terminal nearLondon will open next spring, its operator Greenergy said onMonday, as a rising glut in oil supplies has made storage one ofthe industry's most attractive investments.
Privately-owned Greenergy announced that it had increasedits stake in the project, built on the site of the formerCoryton refinery, after acquiring Dutch rival Vopak's 33.3 percent stake. Royal Dutch Shell remains thesecond partner in the project.
The Thames Oilport tank field will have an initial capacityof 175,000 cubic metres, used mostly for storing diesel tosupply the London region, and will gradually expand to becomeBritain's largest oil products terminal, Greenergy CEO AndrewOwens told Reuters.
The collapse in oil prices since June 2014 as a result ofrising global supplies has made storage a highly lucrativebusiness, attracting investment funds globally, as traders andrefiners opt to store crude and oil products until pricesrecover - a market structure known as contango.
While the Coryton project had a bumpy path since its startthree years ago, with partners scrapping an initial plan for alarger terminal than the current one, the contango has been acatalyst for its development in recent months, Owens said.
"The contango we've got at the moment is very much helpingus to get momentum at Thames Oilport," Owens said, adding thatit "allows you to do things on a phased and more slow motionbasis because the contango is helping you pay for the capital".
Demolition of the former refinery infrastructure is underwayto clear up land ahead of its expected sale in the first half of2016, Greenergy said in a statement.
NAVIGATOR
At the same time, Greenergy created a partnership withMacquarie Capital, the investment unit of Macquarie Group to acquire Vopak's remaining UK assets as well asGreenergy's North Tees storage assets in Teeside.
The partnership, Navigator, is a "stepping stone" forGreenergy, allowing it to access capital for further growth overthe next decade. "Navigator creates a financial structure whichenables us to continue and accelerate our investments in oilindustry terminal infrastructure," Owens said.
Vopak said the divestment of its UK business amounts to 335million pounds.
Greenergy, Britain's largest oil storage operator, also hasoperations in Canada, the United States and Brazil.
CLOSURE SLOWDOWN
Owens said the golden days for oil refinery profits over thepast year, a result of low crude prices and a sharp rise indemand for products, will slow closures in Europe that most hadexpected to continue steadily through to the end of the decade.
"They've been astounding - that's the only word for it," hesaid of the margins this year, adding that "the refineries havemade so much money that they can sit on that for a while andburn it away for a bit."
Refinery capacity of some 2 million barrels has closed inEurope since 2009, as pressure from state-of-the-art new unitsin the Middle East and Asia squeezed European refiners' profits.
But the global excess of oil that forced crude prices to10-year lows also helped oil companies squeeze more money thisyear from Europe's comparatively smaller, older refineries.
Capacity closures also allowed Britain to more than triplenet imports of petroleum products last year.
"At the moment, the UK is still short capacity," Owens said."(But) when the Thames Oilport is up and running, that's morethan enough capacity." (Reporting by Ron Bousso and Libby George; Editing by MarkHeinrich)
