Inter Terminals’ latest expansions

EYES FRONT

INVESTMENT • INTER TERMINALS CONTINUES TO INVEST HEAVILY IN DEVELOPMENT PROJECTS ACROSS EUROPE, WITH HIGH HOPES FOR FURTHER GROWTH IN 2019

FOR INTER TERMINALS, 2018 marked another year of growth and development, with a number of projects across the company’s existing European storage network and the addition of NuStar’s European terminal network. This exciting acquisition establishes Inter Terminals as the largest independent storage operator in the UK and increases overall storage capacity by approximately 33 per cent.

Last year also saw the completion of the largest organic development project for a decade at Inter Terminals’ Seal Sands terminal on England’s east coast. New tanks and pipeline links have been constructed to meet contracted demand for chemical storage at the terminal, which has developed specialist expertise in storing and handling a wide range of chemicals, many of which have distinct storage requirements.

The project at Seal Sands included the construction of two 7,000-m³ mild steel tanks with internal floating roofs and a dedicated import pipeline for receiving product into storage from seagoing tankers. In addition, an existing cross-country pipeline has been redeveloped to allow the direct transfer of stored product to nearby chemical manufacturing plants. A further three mild steel tanks, with a total capacity of 13,000 m³, have also been built at the terminal, together with interconnecting infrastructure, to enable the export of product by sea and by road via a new tanker loading facility.

The extensive design and build programme at Seal Sands was project-managed by Inter Terminals’ own engineering division, which has a wealth of experience in the design and implementation of projects to construct, upgrade and expand capacity within its own terminals and at customers’ facilities.

WELL POSITIONED Seal Sands occupies a prime location on the River Tees and provides easy access by road and direct pipeline to the region’s major petrochemical and industrial complexes, as well as excellent sea connections via two jetties. The investment at Seal Sands demonstrates Inter Terminals’ commitment to working closely with customers to identify and develop solutions for specific product storage and handling requirements. A fascinating time-lapse video can be found on the company’s website, capturing the construction of the new tanks at Seals Sands from the ground up.

Inter Terminals’ investment at Seal Sands forms part of a continuous programme of asset integrity management and development across the company’s European storage network to ensure facilities meet the needs of current and future operational capacity.

Other recently completed projects include the refurbishment and strengthening of two piers at the company’s Gulfhavn Oil Terminal (GOT) in Denmark. Located in a prime position in the Danish Straits on the route in and out of the Baltic Sea, GOT offers build-bulk, breakbulk, ship-to-ship and contango logistics for the international movement of oil products within Europe and beyond. »

FUTURE FUELS Inter Terminals is also taking a proactive approach to meeting demand for convenient and competitive low-sulphur fuel bunkering ahead of the International Maritime Organisation’s (IMO) new 0.5 per cent global limit for the sulphur content of ships’ fuel from 1 January 2020, the so-called ‘IMO 2020’ rule. The new regulations are part of continuing efforts to reduce air pollution from shipping and should have major health and environmental benefits, particularly for those living close to ports and coastal areas.

Inter Terminals has a comprehensive range of terminal locations with flexible and adaptable storage facilities capable of handling multiple products and grades, including low-sulphur fuels required to comply with IMO 2020. In addition, terminal infrastructure at certain locations is connected with nearby refineries, offering the potential for low-sulphur marine fuels to be blended or transferred directly into dedicated storage at Inter Terminals’ facilities.

The company’s terminal at the Swedish port of Göteborg is particularly well placed to provide IMO 2020-compliant low-sulphur marine fuel blending and bunkering to new and existing customers. Occupying a strategic location on an active transit channel for large fuel oil flows and with a range of tank capacities and technical expertise, the terminal has a significant advantage in this developing market.

According to some industry estimates the new 0.5 per cent global cap for sulphur content will affect approximately 75 per cent of global marine fuel demand. The sulphur limit for ships operating in the existing Emission Control Areas, established by the IMO in 2015, will remain at 0.1 per cent. IMO 2020 is coming and Inter Terminals says that it has the locations, necessary skills, and infrastructure to provide convenient, cost-effective and compliant storage solutions to all shipping sectors.

ADDITION TO THE NETWORK In October 2018, Inter Terminals announced the acquisition of NuStar Energy’s European bulk liquid storage business (NuStar Europe). The transaction provides an attractive entry into the Port of Amsterdam, the world’s largest gasoline blending hub, which has experienced significant storage growth over the years.

NuStar Europe’s network consists of seven coastal terminals with an aggregate storage capacity of 9.1m bbl (1.45m m³). One terminal is located in Amsterdam, Netherlands with the remaining facilities located in the UK near London and at Runcorn, Eastham, Grangemouth, Clydebank and Belfast.

The acquisition adds a high-quality, modern asset base of 321 tanks to Inter Terminals’ existing European storage network. Serving a diversified customer base, all terminals are strategically located along key waterways with proximity to large metropolitan areas, an important competitive advantage. Looking ahead to 2019 and beyond, there is the potential for strong integration synergies with Inter Terminals’ existing terminals in the UK, resulting in enhanced product storage and custom blending for customers.

Inter Terminals Ltd is a wholly owned subsidiary of Inter Pipeline Ltd. which operates a diversified portfolio of energy infrastructure assets in western Canada, as well as the terminal network in the UK, Ireland, Denmark, Germany and Sweden. Inter Terminals has a combined bulk liquid storage capacity of around 5.8m m3 in 23 wholly owned multi-product terminals, which provide comprehensive storage and handling solutions for the oil, chemical, and biofuel markets.

These activities are complemented with a wide range of services for the general chemical, food, agricultural and pharmaceutical sectors, as well as considerable expertise in the handling and management of technical wastes. HCB www.interterminals.com