News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

OT OUT OF INDIA

Oiltanking is to sell its interest in Indian Oiltanking Ltd (IOT), a joint venture with Indian Oil Corp (IOC), subject to customary approvals. IOT operates six terminals in India with a combined storage capacity of some 2m m3. The sale to Adani Ports and Special Economic Zone Ltd (APSEZ) is part of Oiltanking’s strategic review and its focus on the optimisation of its asset portfolio.

“Since the establishment of IOT in August 1996, the joint venture with IOC has developed into a strong partnership that has grown significantly and achieved many great successes,” says Matti Lievonen, Oiltanking’s CEO. “We are confident that this success story will continue with APSEZ and strongly believe that APSEZ will help to grow the business further at a time when energy demand in India continues to be on the rise. We would like to thank our customers for their trust over the years and express our sincere gratitude to all Indian Oiltanking employees. We wish them all the best for the future.”

Oiltanking has also agreed to sell its 91.1 per cent stake in Oiltanking Bulgaria to AstraFinance; the company operates a 25,860-m3 liquids storage terminal in Varna, with the Port of Varna holding a minority share. AstraFinance is a subsidiary of the Bulmarket Group, a leading regional manufacturer of biodiesel and one of the largest private transport companies in the Balkans. www.oiltanking.com

IMTT SELLS UP IN GEORGIA

International-Matex Tank Terminals (IMTT) has closed the sale of its two bulk liquids terminals in Savannah, Georgia to Colonial Group in a cash transaction. The terminals are located on the Savannah River and have a combined storage capacity of some 2m bbl (320,000 m3), with truck, rail and deep-draught marine access.

“The compelling offer from a local buyer with strong market connections will support our continued strategy to balance our legacy petroleum assets with new investments in energy transition projects,” says Carlin Conner, chairman and CEO of IMTT. “We believe this transaction underscores the value of the liquid storage space. I want to thank our employees for helping to establish these terminals as premier locations in the Savannah market.“ www.imtt.com

EXOLUM EXITS OMAN

Exolum has agreed to sell its 40 per cent stake in OQL to its joint-venture partner, OQ. The two firms established OQL in 2014 to build and operate the Muscat-Sohar pipeline and the 170,000-m3 Al Jifnain oil terminal in Oman; the company now supplies some 70 per cent of Oman’s fuel demand.

Exolum was involved in the design and construction of the project and has supervised operations and maintenance since it was commissioned in 2017; its contribution to the project is now deemed complete. Funds from the divestment will be put towards Exolum’s investment plan for growth in diversification projects. exolum.com

VOPAK IMPROVES AGAIN

Vopak has reported third quarter revenues of €349.6m, up from €309.5m a year earlier. Group EBITDA, excluding exceptional items, improved by 7.6 per cent to €226.9m, though net profit slipped slightly to €77.7m.

“Our strong third quarter performance demonstrates that our well diversified infrastructure portfolio uniquely positions Vopak to serve our customers amidst highly uncertain times,” says CEO Dick Richelle. “The deployment of growth capex towards our strategic priorities is going well, with growth in

industrial and gas terminals and acceleration towards new energies. Our improved financial performance and solid strategy execution allows us to update our outlook for FY 2022, by increasing our expectation for EBITDA and proportional operating cash return.”

During the quarter Vopak committed to a refurbishment of its Eurotank chemical terminal in Antwerp, where it will spend some €70m to rebuild 41,000 m3 of tankage and strengthen its service offering for chemical imports. Completion of the project is slated for end-2024. The company is also planning to repurpose 22 oil tanks at its Los Angeles terminal, at a cost of some €30m, to handle sustainable aviation fuel and renewable diesel, with the new 148,000 m3 of capacity due onstream in the middle of 2023. In China, Vopak and its 50/50 partner are due to start construction of an additional 110,000 m3 of capacity at the Caojing terminal to serve a long-term industrial contract. www.vopak.com

GOOD TIMES FOR ENTERPRISE

Enterprise Products Partners has reported third-quarter operating income of $1.71bn, compared to $1.51bn last year, with adjusted EBITDA rising from $2.02bn to $2.26bn.

“Enterprise reported strong financial results for the third quarter of 2022,” says AJ ‘Jim’ Teague, co-CEO of Enterprise’s general partner. “Our third quarter performance was very similar to our record second quarter of 2022. Enterprise reported a $232m increase in gross operating margin for the third quarter of 2022 compared to the third quarter of last year. These results were primarily driven by contributions from the partnership’s Midland Basin natural gas gathering and processing business (acquired in February 2022) and higher gross operating margin from our natural gas processing, octane enhancement and natural gas pipeline businesses.”

The operating margin of the Enterprise Hydrocarbons Terminal fell by $18m compared to last year as a result of lower loading fees, despite an increase in LPG export volumes. The Morgan’s Point ethane export terminal in Texas enjoyed a $16m increase in gross operating margin, with higher average loading fees and a significant increase in export volumes.

Enterprise and Navigator Holdings have now announced plans to expand ethylene export capacity at the Morgan’s Point terminal. Construction work is due to begin in the first quarter of 2023 and be completed in 2024, adding “significant” refrigeration capacity and generating increased revenues from higher throughput capacity.

Navigator notes that throughput in the third quarter was just under 190,000 tonnes, well down on the first two quarters of the year, partly in line with seasonal trends and partly as a result of economic slowdown in Europe and ongoing Covid-related restrictions in Asia. However, volumes increased significantly in October and cargoes are now heading for the Far East again. enterpriseproducts.com

DEMAND BOOST FOR KM

Kinder Morgan has reported net income of $576m for the third quarter, up from $495m a year ago, on the back of strong demand for its oil and gas infrastructure assets. “As we continue to witness the tragic consequences of the war in Ukraine, including global economic turbulence and volatility, our company and the US energy sector as a whole can take some measure of pride in continuing to provide both our citizens and those around the world with natural gas, refined products and crude oil,” says executive chairman Richard D Kinder.

“There is simply no question that the assets we operate and the services we provide will be needed for a long time to come. Similarly, it is indisputable that a lengthy transition to greater deployment of low carbon energy sources is underway - and we are responding to that,” adds CEO Steve Kean. “As we look ahead, roughly 80 per cent of our project backlog is in lower-carbon energy services, including natural gas, renewable natural gas, renewable diesel and feedstocks associated with renewable diesel and sustainable aviation fuel.” www.kindermorgan.com