THE NEXT STEPS

EXPANSIONS • THE GLOBAL ENERGY TRANSITION IS HAVING A BIG IMPACT ON THE BULK LIQUIDS STORAGE MARKET, WITH NEW TRENDS EMERGING IN THIS YEAR’S SURVEY OF CONSTRUCTION ACTIVITY

WHEN THE OIL industry began, there was no need for bulk liquids storage terminals. It was only later, as barrels gave way to bulk, that producers (especially exporters) needed somewhere to collect their product prior to shipment.

The new energy industry is taking a different tack. For a start, the movement of clean, low- or zero-carbon fuels over long distances will only make economic sense if it can take place on a large scale. As a result, those interests promoting or actively developing new long-haul supply chains to bring clean fuels (often ammonia) into northern Europe are almost always including storage terminal operators in their list of partners; without commitment to provide the appropriate storage capacity (right tanks, right place) these supply chains will not succeed.

Another emerging issue is the need to dispose of carbon dioxide collected from industrial activity (including, in fact, the production of low-carbon fuels); again, those who are taking an interest in being part of that supply chain are involving shipping and storage interests in the process.

The picture is somewhat different in North America, as it looks likely that the production of clean fuels will be largely fed by local availability of appropriate feedstocks. Nevertheless, here too there is a need for terminal and pipeline operators to play a part in the development of the sector.

The outcome of these trends is that, while this year’s annual survey of terminal expansion activity is as long as ever, some of the bigger projects are long-term investments involving upstream and downstream interests alongside port authorities and terminal operators (sometimes more than one per project).

An interesting aspect of this work in northern Europe is that Germany seems to be keen to bypass the crowded ports of the ARA region (where there are plenty of projects in hand, with major support from the port authorities) and develop its own import facilities for green energies. It may be that the recent focus on fast-tracking new LNG import sites on its northern coastline, to reduce the country’s reliance on Russian natural gas, has reminded Germany that in fact it does have some major ports facing the North Sea that can play a role in the energy transition.

North America

BUCKEYE, CANADA

Buckeye Partners has closed the acquisition of Bear Head Energy, which is developing a large-scale green hydrogen and ammonia production, storage and export project in Point Tupper, Nova Scotia.

“Buckeye’s intention with this acquisition is to develop a large-scale green energy production, distribution and export hub,” says Buckeye CEO Todd Russo. “Given the project’s unique features and the geographic advantages of the region, including its status as one of the top locations globally for wind energy generation, we believe that this has the potential to become one the world’s premier green hydrogen production facilities.”

KINDER MORGAN, CALIFORNIA

Kinder Morgan placed its new renewable diesel hub projects in southern and northern California into service in February 2023, with full operations being reached a month later. The southern hub is based at the company’s existing Carson terminal in Los Angeles, and now supplies up to 20,000 bpd of blended diesel to the San Diego and Colton depots, delivering fuel arriving by sea to the ports of Los Angeles and Long Beach.

The northern hub connects the San Francisco terminal to depots in Bradshaw, Fresno and San Jose, primarily using existing infrastructure.

“We are very pleased to be advancing California’s climate goals through our Southern and Northern California RD hubs,” said KMI’s president of products pipelines, Dax Sanders, announcing the commissioning. “These projects present a significant opportunity to participate in the transition to lower emissions energy sources of the future while continuing to provide fuels still in demand today. We are confident that the best way to serve markets during this energy evolution is through an all-of-the-above energy mix. Pipelines continue to be the safest and most cost-efficient mode of long-haul transportation for liquid fuels.”

VOPAK, CALIFORNIA

Vopak is 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.

KINDER MORGAN, LOUISIANA

Tank conversion work is nearing completion at Kinder Morgan’s Harvey terminal in Louisiana, which will create a renewable feedstock storage and logistics hub for Neste’s bio-diesel and sustainable aviation fuel business. The initial phase of the project is due onstream in the second quarter of this year.

IMTT, NEW JERSEY

IMTT has announced plans to consolidate existing bulk liquids storage operations at its Bayonne site in New Jersey to free up some 130 acres (52.6 ha) of waterfront land for redevelopment. IMTT says the move will allow it to serve its bulk customers more efficiently and attract additional economic opportunities to the Bayonne area. There will be some reduction in storage capacity but, IMTT says, the terminal will continue to be the largest in the New York Harbor area.

“We are pleased to announce that IMTT is consolidating a portion of the Bayonne terminal and embarking on a transformational development process for the eastern portion of the property. This will allow us to continue providing high-quality storage and logistics services on the west side of our property and pursue sustainable development opportunities on the east side,” says Carlin Conner, IMTT’s chairman/CEO.

ZENITH ENERGY, OREGON

Zenith Energy has agreed to completely phase out crude oil storage at its terminal in Portland, Oregon within five years and to transition to renewable fuels. Zenith had originally proposed to dedicate half its capacity to renewables but this plan was deemed incompatible with the 2035 Comprehensive Plan established by the City of Portland to reach its climate emergency goals.

“Zenith Energy is committed to helping Portland achieve its greenhouse gas reduction goals and addressing climate change by transitioning 100 per cent of our crude oil storage to renewable fuels,” says Grady Reamer, Zenith Energy’s vice-president of US Operations West. “Accordingly, Zenith will immediately reduce our Portland facility’s ability to transload crude oil and end such operations within five years.”

CIP, LOUISIANA

Copenhagen Infrastructure Partners (CIP) has acquired a majority stake in a blue ammonia project in the US Gulf Coast and has entered into an agreement with International-Matex Tank Terminals (IMTT) to provide ammonia storage and handling services. The project has started a detailed FEED study and will initially comprise two units, each with production capacity of some 4,000 tonnes per day. Due to enter production in 2027, it will used Topsoe’s SynCOR technology.

“We are developing a global portfolio of clean hydrogen and hydrogen-related products, such as clean ammonia. Blue ammonia is considered an important part of a successful energy transition, which can potentially help fill the ammonia shortage in Europe as well as being a stepping stone to the successful implementation of green projects, and we are excited to bring this project to the Gulf Coast region,” says Søren Toftgaard, a partner at CIP.

Chris Partridge, executive vice-president of IMTT, adds: “IMTT is thrilled to support CIP’s development of this alternative fuels project. Additional clean energy sources, such as blue ammonia, are vital to advancing the global energy transition. We look forward to leveraging our terminalling experience and expertise to assist CIP in delivering this low-carbon fuel to the market.”

ENTERPRISE/NAVIGATOR, TEXAS

Enterprise Products Partners and Navigator Holdings have announced plans to expand ethylene export capacity at the Morgan’s Point joint-venture terminal in Texas. The partners agreed this past March to increase export capacity from 1.0m tpa to at least 1.55m tpa and potentially to as much as 3.0m tpa. Construction work is scheduled to be completed in the second half of 2024.

ODFJELL, TEXAS

Odfjell Terminals Houston (OTH) broke ground on a new 32,000-m3 tank bay last year; work is progressing according to plan and is due to be completed by the end of this year. The new tank bay will have six carbon steel and three stainless steel tanks and, Odfjell says, will be highly automated. Completion will take total capacity at the site up to some 410,000 m3

TIDEWATER, WASHINGTON

The US Department of Agriculture has made a grant of some $3.1m to Tidewater Terminal to help expand the availability of biodiesel in the Washington/Oregon/Idaho region. Tidewater will contribute matching funds, which will be used to make improvements at its Snake River Terminal in Pasco, Washington to enable the receipt of neat biodiesel by rail and its blending and loading into trucks for local delivery.

Latin America

STOLTHAVEN, BRAZIL

Stolthaven Terminals Brazil last year began operation of its own nitrogen generation plant, marking a first for the company and for any port terminal in Brazil. The plant, at the Stolthaven terminal in Santos (right), is being operated by Linde affiliate White Martins and uses the pressure swing adsorption technology; it will supply almost all the nitrogen the terminal needs for tank blanketing and vessel purging purposes. It will also reduce the number of supply vehicles on site.

ADVARIO, MEXICO

Advario and Braskem Idesa have formalised a 50/50 joint venture to build and operate an ethane import terminal in Coatzacoalcos, Mexico. The $400m Terminal Química Puerto México (TQPM) project will have 100,000 m3 of storage capacity, a new jetty to handle ships of up to 100,000 dwt and an 11-km pipeline link to the nearby Braskem Idesa plant, which will be the major customer. Cryogenic ethane will, though, be offered to other industrial users in the region.

“We are pleased with the partnership and look forward to successfully developing the important terminal, and our long-lasting relationship with Braskem Idesa,” says Bas Verkooijen, CEO of Advario. “This is another example of Advario’s commitment to partnership, and our focus on growth opportunities within chemicals, gases and new energies.”

Northern Europe

EVOS, BELGIUM

The Evos terminal in Ghent this year became the first facility to put a batch of sustainable aviation fuel (SAF) into the NATO Central European Pipeline System (CEPS) for delivery to a commercial airport. The delivery is one outcome of a ten-year investment in infrastructure for the storage and distribution of renewable fuels and biofuels at Ghent. “For several years we have been developing a fully adapted infrastructure for renewable jet fuel,” says Jeroen Lagerweij, managing director of Evos Ghent. Consequently, the terminal is now one of the largest SAF terminals worldwide, offering the facilities and flexibility to load/unload SAF for all transport modes including trucks, containers, barges and seagoing shipping, and railcars. “SAF is the future and we would like to help build it and grow together with our customers,” adds Tom D’Oosterlinck, HSSE specialist at Evos Ghent.

NOORD NATIE, BELGIUM

Noord Natie Odfjell Antwerp Terminal (NNOAT) formally opened its latest expansion, Tank Pit T, in June 2022. The seven new tanks, built by Ivens, provide an additional 12,700 m3 of storage capacity.

Engineering has started on the next phase, Tank Pit U, which will add six 6,000-m3 storage tanks and take overall capacity up to 461,000 m3 by the end of 2023. To accommodate the new tankage, one warehouse will be dismantled, with current drumming and IBC filling activities being consolidated at another