News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

ODFJELL GIVES OK TO HOUSTON EXPANSION

Odfjell has taken the decision to proceed with the planned expansion of Odfjell Terminals Houston (OTH)(right), with construction work on the new Bay 13 due to start in the first quarter. Bay 13 will comprise nine tanks, with a mixture of stainless and carbon steel, will a combined capacity of 32,400 m3. On completion, the new bay will increase capacity at OTH by some 9 per cent to 413,400 m3 .

Odfjell says the expansion project is “consistent with OTH’s strategy of positioning itself for healthy demand for storage capacity in the specialty/petrochemical industry in the US Gulf Coast region,” where it has been operating at or near full capacity for several years. The new tanks will allow OTH to relocate and consolidate products of existing customers and optimise the use of its current storage capacity for new customers and products. Odfjell says bulk chemical exports from the US Gulf are expected to increase by 2.3m tonnes by 2024, leading to a rise in storage demand. The development of Bay 13 will, it says, assist in supporting industry growth for existing and new customers.

The tank bay will be highly automated, requiring less manual intervention, and will benefit from the ongoing Digital Transformation Program, which includes an advanced ERP system and automated control systems. It is scheduled to be operational by the end of 2023. www.odfjell.com

BITUMEN BY RAIL FROM CANADA

US Development Group (USD) and Gibson Energy have put their new diluent recovery unit into full operation and begun shipping DRUbit by Rail™. This provides a way to move heavy Canadian crude oil (bitumen) by rail to the US Gulf Coast at a cost that is competitive with pipeline. The DRUbit is loaded at Gibson’s Hardisty terminal in Alberta and is currently being shipped to ConocoPhillips’ Port Arthur Terminal in Texas, where the diluent is removed and returned to Hardisty by train, with the support of CP and Kansas City Southern.

“We were pleased to see the Hardisty Energy Terminal fully operational in line with budgeted capital cost,” says Steve Spaulding, Gibson’s president/CEO. “We consider DRUs to be a cost-effective, scalable, environmentally attractive long-term egress solution for the basin, and we remain in commercial discussions for potential additional phases at the Hardisty Energy Terminal.” www.gibsonenergy.com

HYDROGEN FOR BELGIUM

The Port of Antwerp and the Port of Zeebrugge have signed a memorandum of understanding (MOU) with Chile’s Ministry of Energy with the aim of setting up a flow of renewable hydrogen from Chile to western Europe. A feasibility study had previously confirmed that importing renewable energy is achievable both from a technical and economic point of view.

“Importing renewable energy is essential if we are to achieve a carbon-neutral society by the year 2050,” says the Port of Antwerp. “Generating solar and wind energy in Belgium alone will not be sufficient. That is why we will be importing wind and sun from countries where both are available in abundance. When importing energy, hydrogen molecules are used as a storage medium for transportation purposes.”

This collaboration will eliminate the last barriers and gaps in the run-up to the effective start-up of green production, the establishment of the logistics chain between the continents and the logistics in the Belgian seaports and their hinterland, the Port of Antwerp says. Chile has set ambitious targets to leverage its abundant renewable energy sources to become a carbon-neutral country by 2050 and to be producing the cheapest green hydrogen by 2030.

Speaking at the signing of the MOU this past November, Chile’s energy minister Juan Carlos Jobet said: “This is excellent news to continue consolidating Chile’s leadership in the development of this new industry. Our potential in clean energy will allow us to be the cheapest producers of green hydrogen in

the world, with which we will be able to satisfy our demand, but also help other countries to advance with their climate goals.” www.portofantwerp.com

CHEMOIL CHANGES HANDS

Chemoil, which operates two bulk liquids storage terminals in southern California, has been acquired by a group of investment funds and renamed Olympus Terminals. The two sites are widely used for ship bunkering but also serve the greater Los Angeles area with a range of refined products, including road fuels, biofuels and other renewable energies.

The 520,000-bbl (83,700-m3) Long Beach marine terminal largely handles bunker fuels and is equipped with a marine vapour destruction unit that can handle a 10,000 b/h loading rate. The larger Carson terminal (1.29m bbl, 205,000 m3) has 22 storage tanks, multiple loading and unloading racks, an on-site truck scale and in-line biofuel blending. The two sites are connected to each other and to local refineries by an extensive pipeline network.

“We are excited to partner with these investors as we continue to serve the greater Los Angeles area,” says Vince Godfrey, CEO of Olympus Terminals. “With our strong ability to create and deliver the fuel required to meet today’s rigorous environmental standards, we are well positioned for growth.” www.olympusterminals.com

NO TURKEY FOR RUBIS

Rubis Terminal Infra has agreed to sell its Turkish assets to Transpet Petrolcülük ve Enerji, subject to certain conditions and regulatory approvals. The 650,000-m3 Rubis Petrol terminal near Dörtyol, in south-eastern Turkey, handles refined products, including output from Iraq that arrives by pipeline, and has a 2.3-km jetty capable of accommodating Suezmax tankers. www.rubis-terminal.com

CROWLEY GETS TO WORK IN OZ

Crowley Solutions has appointed Saunders International to provide EPC and management services for 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 of a major contract from the US Defense Logistics Agency for the storage of aviation turbine fuel and jet fuel at the terminal and the agreement with Saunders is seen as a vital components in delivering on that contract.

“We are pleased to be entering into this agreement with such a highly reputed firm as Saunders International to provide professional management and tank construction services,” says Sean Thomas, vice-president of Crowley Solutions, the company’s government services business unit. “We value their proven industry expertise in Australia and look forward to working with them to deliver Crowley’s energy solutions.”

Sydney-based Saunders has an extensive track record in the delivery of major tank construction projects, including those for military use. In the past 18 months alone, it has built tanks for the RAAF base in Darwin and is currently completing two tanks for the Australian Navy. www.crowley.com

FINDS PROMPT TALLGRASS RETHINK

Tallgrass Energy has begun a comprehensive reappraisal of plans for the proposed Plaquemines Liquids Terminal, a joint development with Drexel Hamilton Infrastructure partners in concert with the Plaquemines 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. www.tallgrass.com