Operators invest for future demand

PLACE YOUR BETS

EXPANSIONS • NEW TANKS, NEW PRODUCTS AND NEW TRADE FLOWS ARE MAJOR FEATURES IN THIS YEAR’S ANNUAL REVIEW OF STORAGE TERMINAL EXPANSION AND IMPROVEMENT WORK

UPSTREAM OIL AND gas activity continues unabated as the world remains thirsty for product but bulk liquids storage terminal operators around the world are looking further ahead, readying themselves for the inevitable shift in the product mix as the energy transition away from carbon-based fuels begins to take effect. All around the world, established operators, for whom the old hydrocarbon market has been a rich source of business for many decades, are investigating what infrastructure will be needed to manage future flows of alternative fuels.

Those operators with the financial heft to back several runners in this decarbonisation race are investing heavily not just in the physical assets needed to handle products such as hydrogen, ammonia and methanol in Edmonton terminal with construction of another 435,000-bbl (70,000 m3) crude oil tank, underpinned by a long-term, take-orpay contract with a new investment-grade customer. “We continue to see the need for additional tankage in Edmonton ahead of the Trans Mountain Pipeline Expansion entering service and remain in discussions with other shippers regarding further opportunities,” says president/CEO Steve Spaulding. The tank is due in service in early 2023.

Kinder Morgan, California Kinder Morgan plans to establish a renewable diesel hub in southern California, based on its existing Carson terminal in Los Angeles, where it will create renewable storage capacity with connectivity to its own truck rack and to the SFPP pipeline system to supply its Colton and Mission Valley terminals. Investment at Colton will enable customers to blend renewable diesel with biodiesel, while at Mission Valley it will involve upgrades to truck loading racks. Along with a similar project previously announced for northern California, this will involve investment of more than $50m. Both projects are expected to be placed in service in the first quarter of 2023. “As refineries are converting to renewable

within their terminals themselves, but also in the broader value chains, which may include renewable production facilities in far-flung parts of the globe, solar and wind power generation, carbon capture and storage or utilisation, and the waste-to-X sector.

Meanwhile, of course, they have to continue to trim their terminal assets to meet the immediate needs of their customers, especially at a time when supply chains are in flux and there is some degree of a shift in the carriage of product away from tanks towards bulk shipments by tanker. Our annual review of developments is just as long as ever and contains some intriguing projects.

NORTH AMERICA Gibson Energy, Canada Gibson Energy is to expand capacity at its

diesel, we believe this is an attractive opportunity to pivot to the energy fuels of the future in a manner that is consistent with our corporate goals and return criteria,” says Dax Sanders, president of product pipelines at Kinder Morgan.

NuStar, California NuStar Energy continues to develop its West Coast Renewable Fuels network, which now account for nearly 30 per cent of its storage segment revenue. It has two projects in hand to add further renewable diesel storage capacity at its Stockton terminal this year, while it is also expanding its ethanol transport offering.

IMTT, Louisiana International-Matex Tank Terminals (IMTT) is to build additional tankage, pipelines and dock infrastructure at its Geismar terminal in Louisiana, specifically to handle renewable feedstocks and products, including renewable diesel, biodiesel and other fuels. The project is backed by a long-term contract with Renewable Energy Group (REG), which is currently working on an expansion of its nearby bio-refinery, due to come onstream in 2023. IMTT will nearly double total capacity at the Geismar marine terminal, building six new storage tanks.

Kinder Morgan, Louisiana Kinder Morgan and Neste have agreed to partner in the creation of a US logistics hub, based on Kinder Morgan’s Harvey terminal in Louisiana, for the collection and distribution of feedstocks and renewable fuels, including biodiesel, sustainable aviation fuel (SAF) and renewable feedstocks for polymers and chemicals. Kinder Morgan will modify existing tanks and pipework at the Harvey facility to allow segregated storage in 30 tanks, install a new boiler for heating products, and invest in rail car and other logistics elements. The project is supported by long-term commitment from Neste and is expected to start operations early in 2023.

NOLA, Louisiana Construction work started this past December on the NOLA Oil Terminal, sited on the Mississippi River in Plaquemine Parish, Louisiana. The $930m project (below) will serve oceangoing tankers up to Suezmax site, as well as inland tank barges, handling crude oil and refined products. It will also offer blending, storage and transhipment services. The first phase of construction is scheduled to be completed in mid-2022; on completion of the second phase, the terminal will offer some 10m bbl (1.59 m3) of tank storage capacity.

Phillips 66, Louisiana Phillips 66 announced in November 2021 that it plans to convert its Alliance refinery in Belle Chasse, Louisiana to a terminal facility. Conversion work is expected to take place over the course of this year.

Tallgrass, Louisiana Tallgrass Energy is looking again at plans for the proposed Plaquemine Liquids Terminal, a joint development with Drexel Hamilton Infrastructure partners in concert with the Plaquemine Port & Harbor Terminal District in Louisiana. The move follows the discovery of a cemetery and potential artifacts during cultural survey work. The development footprint has been reduced to protect those areas. While Tallgrass says that commercial activity on the rest of the site can spur job growth and has the support of local communities, it is now evaluating a range of opportunities other than the construction of an oil terminal.

Enbridge, Texas Having acquired Moda Midstream Operating in late 2021, Enbridge is planning to add some 2m bbl (320,000 m3) of additional storage capacity for crude oil exports at the Ingleside Energy Center, along with a solar facility to generate up to 60 MW of power, making the site a net-negative emissions facility.

Howard Energy, Texas Howard Energy Partners (HEP) is to add 575,000 bbl (91,400 m3) of new tank capacity at its Port Arthur terminal in Texas, along with new pipeline connections to Valero’s nearby refinery, to handle a long-term agreement with Diamond Green Diesel

(DGD), a joint venture between Valero and Darling Ingredients, which will produce renewable diesel at a new unit at the Valero refinery. HEP will also add 7 miles of rail track and associated rail loading/unloading facilities, truck unloading facilities and a Panamax deepwater dock.

“We firmly believe the greater the flexibility of your supply chain, the better you can react to the changing dynamics, as the demand for renewable diesel continues to strengthen,” said John Bullock, executive vice-president and chief strategy officer at Darling Ingredients, at the time the project was announced in May 2021. “We believe this agreement significantly enhances our raw material sourcing of feedstock as well as provides for better finished product marketing and distribution when the DGD Port Arthur facility commences production in the second half of 2023.”

Kinder Morgan, Texas Kinder Morgan is to invest some $64m in reducing CO2 emissions from its Galena Park and Pasadena terminals by 72 per cent; the project is expected to be placed in service in third quarter 2023. Odfjell, Texas Construction has started on the Bay 13 expansion projects at Odfjell Terminals Houston (OTH). Due for completion by the end of 2023, the work will comprise six carbon steel and three stainless steel tanks with a total capacity of 32,000 m3 and will take total capacity at OTH to some 410,000 m3 .

Odfjell says the tank bay will be highly automated, requiring less manual intervention, and will benefit from its ongoing Digital Transformation Program, which includes an advanced ERP system and automated control systems

OIltanking, Texas Oiltanking North America signed a nonbinding letter of intent with ReGen III Corp in July 2021 to develop and operate logistics for ReGen’s used motor oil re-refinery at its Galveston County Terminal in Texas City. Under the agreement, Oiltanking will develop storage tanks, loading and unloading pipelines, rail and marine loading and unloading facilities and other logistics assets at the terminal to support the re-refinery’s activities. The terminal currently handles specialty chemicals and petrochemicals and has more than 87,000 m3 of storage capacity, with ample room for expansion

Pin Oak, Texas Pin Oak Corpus Christi brought 1.2m bbl (190,000 m3) of crude oil tankage onstream at its Taft terminal in September 2021. The terminal is now linked by a new 20-inch pipeline to the Cactus II Taft terminal and Flint Hills’ Midway Station, allowing receipt of Permian and Eagle Ford crude oils and redelivery options to the Flint Hills refinery system and its terminal at Ingleside.

“With the addition of this new infrastructure, Pin Oak becomes the only terminal in the Corpus Christi/Ingleside/Taft market providing customers direct access to the region’s strategic Permian and Eagle Ford long-haul pipelines and direct access to all three of the region’s refineries,” the company said at the time.

Vopak, Texas Vopak opened its new terminal on the US Gulf Coast in Corpus Christi, Texas in October 2021. The 144,000-m3 facility was built to serve the Gulf Coast Growth Ventures polymer plant, a joint venture between ExxonMobil and Sabic, under a 20-year commercial agreement and is wholly owned by Vopak. The terminal has pipeline links to the new petrochemical plant.

In the second half of 2021, Vopak also added 28,500 m3 of new capacity for chemicals at its Deer Park terminal on the Houston Ship Channel. Another 4,500 m3 was added in the first quarter of 2022.

Vopak Moda, Texas Vopak Moda Houston’s new greenfield terminal in Deer Park became fully operational in December 2021. The terminal is designed primarily to handle gases and is capable of berthing VLGCs as well as inland barges. “We are thrilled to bring the Vopak Moda Houston terminal into full service together with our partner Royal Vopak, our customers and other stakeholders,” said Moda Midstream CEO and founder Jonathan Z Ackerman, at the time. “In today’s world,

supply chains must be resilient and sustainable. With the ability to safely and reliably transport ammonia and other pressurised gases for our current and future customers, Vopak Moda Houston is a vital link in the new energy transition supply chain. We are in active discussions with customers to provide logistics solutions for low-carbon products, including storage and handling of green and blue ammonia, hydrogen and low-carbon bunkering. Vopak Moda Houston is well positioned to become the premier low-carbon ammonia and hydrogen terminalling hub on the US Gulf Coast.”

LATIN AMERICA Vopak, Brazil Vopak has scheduled a 20,000-m3 expansion of its Alemoa terminal in Brazil; the new chemicals tankage is due onstream early in 2024 and will taken total capacity close to 300,000 m3 .

Vopak, Mexico Vopak completed a 40,000-m3 expansion of its wholly owned Altamira chemicals terminal in Mexico in the first quarter of this year, with total capacity now standing at 144,000 m3 .

NORTHERN EUROPE Noord Natie, Belgium The latest round of expansion of the Noord Natie Odfjell Terminal (NNOT) in Antwerp (right) is due to be completed this month; the first Ivens-built stainless steel tanks in the 35,000- m3 tank pit ‘T’ are already filled. This will mark the end of a four-phase expansion over the past five years that has added a total of 81,700 m3 of new capacity.

The partners in the terminal have also agreed to continue expanding the site’s capacity, with a new tank pit ‘U’ now planned. This will add another 36,000 m3 in six carbon steel tanks and is due to be commissioned by the end of 2023, after which total capacity at the terminal will exceed 450,000 m3 .

Standic, Belgium Standic put the first phase of its new Antwerp terminal into operation this past February, following some Covid-related delays. Work is now progressing on the second and third phases of construction. Once fully operational, the terminal will offer some 249,000 m3 of storage capacity, primarily for chemicals, in 180 tanks. The first phase includes 79 tanks in eight tank pits.

Vesta Terminals, Belgium Vesta Terminals last year began a 150,000-m3 expansion of its Antwerp terminal. Five new 30,000-m3 tanks will be used specifically to handle jet fuel, with connections to the Central European Pipeline System (CEPS) providing links to most major airports in north-west Europe. Completion is scheduled for fourth quarter 2022. The work will increase total storage capacity at Vesta Terminal Antwerp to 976,000 m3 for petroleum products, biofuels and easy chemicals.

Vopak, Belgium During the middle of 2021, Vopak added 50,000 m3 of storage capacity for chemicals at its wholly owned Linkeroever terminal in Antwerp, taking total capacity at the site up to 190,000 m3 .

Gasunie, Netherlands Gasunie, HES International and Vopak have signed a cooperation agreement aimed at developing a green ammonia import terminal on the Maasvlakte in Rotterdam, ACE Terminal. The partners envisage a 2026 startup date, noting that an import terminal for green ammonia will make a vital contribution to the supply of green hydrogen, which is seen as an essential element in the future decarbonised energy mix.

GES, Netherlands Global Energy Storage (GES) has acquired an interest in the Stargate Terminal at Europoort in Rotterdam from Gunvor and will develop more than 20 ha of land in the heart of the port, with the support of the Port of Rotterdam Authority, to develop a state-of-the-art bulk liquids terminal specifically to handle low-carbon products. GES will install a new jetty and is planning

to become part of the logistics chain that will be required to import ‘blue’ and ‘green’ hydrogen into Rotterdam, as part of the port’s plans to become a hub for hydrogen import and distribution in northern Europe. It will also handle biofuels, gases, ammonia and other hydrogen carriers.

GPS, Netherlands Varo Energy and GPS Group completed work on a new rail line and ethanol tanks at the GPS terminal in Amsterdam at the start of this year. The new assets connect to 20 Class 1 tanks in the terminal, creating an integrated biofuels facility, one of the few in the region to offer handling of both traditional and biofuels. The new facilities were built with the support of the Port of Amsterdam and follow on from a neardoubling in capacity at the terminal during 2019/20 to nearly 300,000 m3 .

HES, Netherlands HES International’s new Hartel terminal on the Maasvlakte in Rotterdam is nearing completion, after some Covid-related delays. The new terminal will offer 1.3m m3 of storage capacity for gasoline, diesel, gasoil, jet fuel and biofuels and is specifically designed for blending and mixing operations. It will have six mooring positions for seagoing vessels and sufficient draft to allow it to handle VLCCs.. Nine barge positions will offer opportunities for shipments to the European hinterland.

Koole Terminals, Netherlands The Port of Rotterdam and Koole Terminals have been working together to improve vessel and barge access in the Botlek area of the port, with the port having now renewed the quay wall and completed construction of the substructure of jetty 7 at Koole Tankstorage Botlek. Koole itself handled the 400-metre jetty superstructure, including a new hose tower that was installed this past November.

Koole is also planning an expansion of the Botlek site, with 150,000 m3 of new capacity for its client Marvesa, a leading producer of edible oils and fats for the animal feed industry. This follows on from construction of 80,000 m3 of dedicated tankage in 2020. The first new tanks have already been installed and Koole is building the operational organisation, using its Koole Academy to help develop current and new employees. Full operation of the site is expected within a year.

Koole last year also completed installation of new, fully automated truck loading racks at Koole Tankstorage Minerals Pernis in Rotterdam. The work included the construction of ten loading bays, seven of which have been fully provided with loading equipment; the other three are held in reserve pending demand in growth.

Koole Terminals has also signed an MOU with Horisont Energi to collaborate on the development of a terminal and storage facility in Rotterdam to handle ammonia shipped from Norway. The agreement also covers technical and commercial conceptual models for storage of ammonia products, services solutions and technologies for further distribution, to meet forecast demand in north-west Europe.

LBC, Netherlands LBC Tank Terminals put the new tanks of its ‘Rainbow phase 2’ expansion project at its Botlek site in in Rotterdam (below) into service in September last year, receiving its first cargo by sea. The expansion added 70,000 m3 of new chemical tankage, taking total capacity up to 182,000 m3; LBC says there is space available to more than double that figure.

“This is once again a great milestone and accomplishment of everybody involved,” the company said. “With our state-of-the-art infrastructure, we are very excited to serve our existing and new customers with safe and reliable storage and handling services in the heart of the Botlek area in Rotterdam.”

Maastank, Netherlands Dekker Group expanded its Maastank terminal in the Botlek area of Rotterdam with 16,700 m3 of stainless steel tankage in July 2021, taking total capacity to 87,000 m3. The work involved installation of nine new tanks, together with two new weighbridges for the loading and unloading of rail tank cars and tank containers.

Vopak, Netherlands Vopak is planning a 64,000-m3 expansion of its Vlaardingen terminal, which mainly handles vegoils. The new tankage, which will take overall capacity up to nearly 620,000 m3 , will be used for renewable feedstocks and is due onstream in third quarter 2023.

VTTI, Netherlands Eurotank Amsterdam, part of the VTTI network, last year undertook a project to convert its gasoil tanks to store biofuels and hydrotreated vegetable oil (HVO). The work followed on from

a successful pilot project and created 75,000 m3 of biofuels capacity at the 1.2m-m3 site, coming onstream in late 2021.

Euro Tank Terminal (ETT), VTTI’s Rotterdam facility, has expanded capacity by 96,000 m3 with the addition of six new tanks this past April, designed to be able to support the energy transition by blending bio components. The expansion takes capacity at ETT up to close to 1.4m m3, handling a range of products from crude oil to chemicals.

Navigator Terminals, UK Navigator Terminals is to expand bitumen storage and handling capacity in the Teesside area in north-east England, under an expanded agreement with TotalEnergies. Navigator plans to install additional ancillary equipment and new tankage, due onstream in 2023.

Prax, UK Prax Petroleum is investing in what it calls a “significant” upgrade of the Jarrow terminal in north-east England (above) that it acquired in 2016, as part of a long-term plan to make the site a strategic hub to ensure the security of fuel supply for the UK. The first job is the refurbishment of the site’s largest storage tank, which has a capacity of 9,300 m3, which will allow work on other tanks to take place without interruptions to supply. Prax also intends to fully automate the terminal’s loading systems, in order to reduce gate-togate times, along with the installation of improved safety systems. Jarrow Terminal will also be equipped with a drumming facility for aviation gasoline. Other work is also in the pipeline.

Stanlow Terminals, UK Stanlow Terminals is to develop the UK’s largest biofuels hub in the north-west of England, with significant investment planned over the next three years at its Stanlow and Tranmere sites to deliver 300,000-m3 of storage capacity to support its customers in delivering the UK’s transition to net-zero. New tankage will allow customers to store, blend and distribute biofuels as drop-in replacement transport fuels for the road, aviation and marine sectors.

Stolthaven, UK Stolt-Nielsen is investing $35m to upgrade jetty facilities at the Stolthaven Dagenham site on the Thames estuary; the work will be undertaken this year and next.

MEDITERRANEAN ATT, Croatia VTTI says the ATT joint-venture terminal in Ploce, Croatia, in which it has a 70 per cent interest alongside local utility company Energia Naturalia (ENNA), is close to completing the third phase of construction, which will take capacity up to 175,000 m3 for clean petroleum products. The partners are planning further work to more than double liquids capacity to 361,000 m3 and add 60,000 m3 of LPG tankage; that project will also include a new jetty capable of handling product tankers up to LR size.

Stolthaven, Turkey Stolthaven Terminals is planning to develop a new greenfield terminal in Ceyhan, Turkey in a joint venture with Rönesans Holding, which is behind the Ceyhan Petrochemical Industrial Zone. In the first phase, the terminal will provide services to Ceyhan Polipropilen Uretim, the first project being developed in the Zone, which plans to produce 450,000 tonnes of propylene per year by propane dehydrogenation.

Plans for the terminal include the construction of additional storage capacity, which will likely be added during the first phase of the project, to serve customers who have expressed an interest in the import and storage of LPG.

MIDDLE EAST & AFRICA ATS Terminals, UAE ATS Terminals increased capacity of its facility in the Hamriyah Free Zone in Sharjah, UAE by 30,000 m3 to 72,000 m3 last year; a fourth phase of construction, which will take total capacity up to 100,000 m3, is planned for this year.

Takoradi, Ghana The Port of Takoradi commissioned its new bulk liquids import terminal in June 2021; the facility had been completed before the end of 2020 but operations had been held up by Covid-related restrictions. The new facility has the deepest draft of any port in West Africa and is used to handle imports of road fuels, LPG, bitumen and other products.

OTTCO, Oman Oman Tank Terminal Company (OTTCO) is planning to bring the first phase of the new Ras Markaz Crude Oil Terminal onstream later this year, offering up to 25m bbl (4m m3) of capacity. The nearby OQ8 refinery in Duqm intends to use 5.3m bbl of capacity, with the remainder being available to other parties for the import and export of crude oil via a single buoy mooring.

Engen, South Africa Petronas-owned Engen is proceeding with its refinery-to-terminal (RTT) project, having now closed its refinery near Durban, the oldest refinery in South Africa. Engen had determined that the facility was no longer financially viable and that an import terminal on the site would provide better security of supply. Commissioning of the new terminal was originally scheduled for third quarter 2023.

Brooge, UAE Brooge Petroleum & Gas Investment, a subsidiary of Brooge Energy, opened the

second phase of its Fujairah terminal in the UAE in September 2021, expanding capacity at the facility to 1.0m m3. The company says it has designed the terminal with some of the latest technology to maximise efficiency, reduce operating costs and product losses, and offer ancillary services including heating and blending. The terminal is designed to handle clean petroleum products and crude oil and its capacity is fully contracted under multi-year take-or-pay arrangements.

SOUTH ASIA Petredec, India Petredec intends to buy out its partner in the joint venture project to develop a 34,000-tonne LPG import facility in Krishnapatnam, Andra Pradesh, India. National Gas Company Oman (SAOG), which has a 60 per cent shareholding in the venture, is refocusing its business development efforts following the challenging conditions as a result of the Covid-19 pandemic; Petredec will buy that share and become sole owner and operator of the terminal. The project is in its final development stage with construction expected to be completed during the third quarter, prior to its commissioning before the end of this year.

Raftaar Terminals, India Reliance BP Mobility opened its first automated additivisation facility this past March at the third-party Raftaar Terminal in Mangalore. The new unit provides automatic dosing of high speed diesel for supply to retail outlets in the area via a new 10,000-litre tank. The terminal, which lies in the New Mangalore port area, is a joint venture between ATS Terminals and local investors and has a capacity of 35,800 m3. Its main role is to act as an import location for fuels for distribution to the local market.

NORTH-EAST ASIA Huizhou QuanMei, China Vopak has been awarded a contract by Huizhou QuanMei Petrochemical Terminal for storage and services at a liquid products terminal to be built alongside ExxonMobil’s proposed Huizhou chemical complex in Guangdong province, China. The terminal will service a world-scale flexible-feed steam cracker located in Dayawan Petrochemical Industrial Park.

The project remains subject to a final investment decision but, should it go ahead as planned, Vopak will take a 30 per cent stake in the 560,000-m3 terminal, including the pipeline connections to the jetty and the cracker.

Oiltanking, China Oiltanking Daya Bay has signed a strategic alliance framework with local authorities in Huizhou, China to advance the development of the world-class Daya Bay Petrochemical Industrial Park, laying the foundation for a modern logistics and warehousing cooperation that deepens the collaboration between the Daya Bay Government, Huizhou Municipal Government and Oiltanking Group.

The agreement follows the relocation of seven tanks within the park area to allow better utilisation of the available land. The tanks offer some 33,000 m3 of petrochemical storage.

“This agreement provides an excellent opportunity to further grow the partnership with the Daya Bay government and support the advancement of the Daya Bay Industrial Park,” says Matti Lievonen, CEO of Oiltanking. Since the announcement, Oiltanking Daya Bay has become part of Advario, the new company formed as a carve-out of selected Oiltanking assets.

Vopak, China Vopak and its partner in the joint venture Qinzhou industrial terminal brought the 290,200-m3 facility onstream in the middle of last year. Further work is being considered to help maximise throughput of LPG and olefins.

Vopak is also working on a 65,000-m3 expansion of the joint-venture Caojing industrial terminal near Shanghai, which is due for completion this month. Stolthaven, Taiwan Stolthaven Terminals signed a letter of intent in September 2021 with Revivegen Environmental Technology to study the possibility of jointly developing a greenfield terminal in the port of Kaohsiung, Taiwan, where Revivegen has recently taken a lease on land. Stolthaven says it has seen growing customer demand for high-quality bulk liquids storage in the region.

“The terminal will focus on the safe and efficient handling and storage of chemicals and industrial gases for local and multinational companies, including those with manufacturing operations in Taiwan,” Guy Bessant, president of Stolthaven Terminals, said at the time. “A terminal in Taiwan would be complementary to our existing global network and increase the reach of the supply chain solutions that we are able to offer our customers.”

AUSTRALASIA Crowley, Australia Crowley Solutions has appointed Saunders International to provide EPC and management services and the construction of several new storage tanks at its site in Darwin in Australia’s Northern Territory. The planned work follows the award in September 2021 of a major contract from the US Defense Logistics Agency for the storage of aviation turbine fuel and jet fuel at the terminal.

Groundwork on the new facility started this past January with construction work starting in February. The $270m project involves construction of 11 storage tanks with a total capacity of some 300,000 m3 .

Vopak, Australia During fourth quarter 2021, Vopak commissioned 105,000 m3 of new tankage at its Sydney terminal, which handles oil products for the local market. The wholly owned terminal now has a capacity of just over 450,000 m3. Having indicated it was considering its investment in Australia last year, Vopak now says it will hold on to its two terminals in the country, which are generating good levels of income.