News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

RUBIS ROLLS ON

Rubis Terminal has reported first quarter revenues of €55.2m, up 1.4 per cent on the prior year once the divestment of the Turkish operation is taken into account. Revenues were down slightly in France, partly as a result of the backwardation in the product markets, though biofuels, petrochemicals and agri-food business showed double-digit growth. The market in Spain continued to expand, largely in the biofuels and petrochemicals sectors, though the 6 per cent revenue growth recorded could have been higher but for strikes in the fuel distribution sector. The joint-venture business in Antwerp remained strong but, as utilisation is already close to 100 per cent, there was no growth; ITC Rubis is currently adapting some fuel oil tankage to handle biofuels ahead of a new storage contract due to start towards the end of this year. www.rubis-terminal.com

AEGIS VOPAK GETS BIGGER

Vopak and Aegis Logistics have finalised their joint venture, Aegis Vopak Terminals, which has been expanded since the original announcement of the plan last year and will now include three extra terminal facilities. Aegis Vopak will be the largest independent tank storage provider for LPG and chemicals in India, with 11 terminals in five strategic ports on both the west and east coasts of India, with a total capacity of some 1.5m m3 .

Vopak says the joint venture is “well positioned” for further growth, which will concentrate on the LPG sector, where the Indian government is promoting its use as a household cooking fuel, but also on chemicals, LNG and industrial terminal opportunities. www.aegisindia.com

GOOD START FOR NUSTAR

NuStar Energy has reported first quarter revenues of $409.9m, up from $361.6m a year ago; after taking a $46.1m impairment charge on the $60m sale of its Point Tupper terminal in Canada at the end of April, net income dropped from $42.3m to $12.3m – absent that adjustment, it achieved a 36 per cent increase over the previous year’s first quarter.

NuStar experienced increased volumes on both its crude oil and refined products pipeline systems, reflecting improved demand for products, while its storage business delivered a 7 per cent increase in adjusted EBITDA compared to the fourth quarter, notwithstanding the sale of its terminals in the eastern US in October 2021.

Within the storage segment, the West Coast renewable fuels network is playing an ever-growing role, not only in helping facilitate the distribution of low-carbon renewable fuels but also in terms of revenue generation. “We expect our West Coast network’s revenue to continue to grow in 2022, as we complete two more projects at our Stockton terminal that will add renewable diesel storage capacity and expand our ethanol transportation solutions, which will increase the significant role NuStar plays in facilitating the West Coast’s transition to low-carbon renewable fuels,” says Brad Barron, NuStar’s president/CEO. www.nustarenergy.com

MAGELLAN MAKES HAY

Magellan Midstream Partners has posted first-quarter net income of $166m, down from $221m for the same period last year, which enjoyed a boost from the 2021 winter storms. “Magellan generated solid financial results during the first quarter of 2022 that exceeded our initial expectations and improved our overall outlook for the year,” says Aaron Milford, who assumed the role of CEO on 1 May.

Revenues from the transport and terminalling of refined products increased by $12m year-on-year, as a gradual economic recovery from pandemic conditions added to transport demand, though its storage business experienced lower utilisation rates following the expiry of a number of contracts. Similar trends were seen in crude oil transport and terminal activity.

Magellan says it now expects to spend some $70m this year to complete projects already committed, which will include improving the

connectivity of its crude oil terminal in Cushing, Oklahoma. The partnership also notes it is still awaiting regulatory approvals for the sale of its independent terminals located mainly in the south-eastern US; it agreed a deal in June 2021 to sell the 26 products terminals, which are not linked to its pipeline network, to Buckeye Partners for $435m. www.magellanlp.com

BUCKEYE TO BUY BEAR HEAD

Buckeye Partners has agreed to acquire Bear Head Energy, which owns a fully permitted LNG and clean energy development project in Nova Scotia, Canada. The Bear Head project was originally planned as an LNG import/ export facility but is likely to be developed as a broader green energy site.

“Nova Scotia’s unique geographical characteristics give the region the potential to become one of the most productive renewable and green energy development areas in the world and, via this acquisition, it is our intention to develop a large-scale energy production, distribution and export hub that will offer our customers lower-carbon energy solutions, including LNG or other green fuels,” says Todd J Russo, Buckeye CEO. www.buckeye.com

VTTI GOES FOR NEW ENERGIES

VTTI and EIT InnoEnergy’s European Green Hydrogen Acceleration Center (EGHAC) have agreed to jointly develop large-scale domestic hydrogen production facilities and hydrogen import facilities in Europe’s major ports. VTTI New Energies is already developing multiple new opportunities in hydrogen and hydrogen carrier fuels, renewable natural gas, waste-torenewables and carbon capture. It is supporting the Port of Rotterdam in its offer to supply Europe with 4.6 megatons of hydrogen by 2030. In addition, VTTI recently commenced its first new energies investment with the start of the construction of a state-of-the-art bio-energy facility in the Netherlands, producing green gas and organic fertilisers. www.vtti.com

INGLESIDE GOES GREEN

Enbridge and Humble Midstream are to jointly develop a low-carbon hydrogen and ammonia production and export facility at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas, which Enbridge acquired from Modal Midstream this past October. Up to 95 per cent of the CO2 generated in the process will be sequestered in new carbon capture infrastructure, being developed by Enbridge, with feed gas expected to be supplied via Texas Eastern Transmission Pipeline, an Enbridge affiliate.

“This is a good example of how Enbridge is leveraging existing conventional energy assets and capabilities to extend growth and capitalize on low carbon opportunities in the energy transition,” says Colin Gruending, executive vice-president and president, Liquids Pipelines at Enbridge. “The EIEC is already the premier export facility on the US Gulf Coast and will play an even greater role in global energy security and sustainability. We’re excited to work with Humble to further develop this opportunity.” www.enbridge.com

MORE JETTIES FOR KOOLE

Koole Terminal Botlek (KTB) has put its new barge jetty into operation, in collaboration with the Port of Rotterdam. “This new jetty is an exciting addition to our terminal and will allow two seagoing vessels or barges on one side and three barges on the other side,” the company says.

Construction of the new Jetty 7 was a major project, requiring the demolition and removal of existing quays and berths and the installation of hose towers and a pipe bridge fabricated at the contractor’s facility. Work is continuing, with the new Jetty 6 due to be commissioned by the end of the year.

“We are immensely proud of this milestone within this impressive, dynamic project,” says KTB’s project manager, Roel Kremer. “The fact that Jetty 7 is in use, while we continue to work on the project, poses a challenge to carry out the work as efficiently as possible. As a Koole team, we were very proud to see the first barge moored and being loaded at Jetty 7.” koole.com