News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

CONTANDA AND BW COMBINE

Contanda and BW Terminals are to merge, following the acquisition of Contanda by institutional investors advised by JP Morgan Asset Management this past December, which brought the two companies under common ownership. The combined entity will be headed by industry veteran Mike Suder, currently BW Terminals’ CEO, with Jerry Cardillo planning to step down from his role at Contanda to pursue other opportunities.

“Mike has a proven record of accomplishment at BW Terminals and has overseen tremendous growth at each of the companies he has led throughout his almost three-decade career in the terminals industry,” a statement from the board of directors says. “We believe he is the ideal leader for the Contanda–BW Terminals organisation. We have tremendous respect for what Contanda has achieved under Jerry’s leadership and wish him well in his future endeavours.”

Suder adds: “Both Contanda and BW Terminals have a reputation for exceptional service enabled by dedicated employees. By bringing Contanda and BW Terminals together, we are entering a new chapter of growth and success. I look forward to leading this combined organisation and I firmly believe that the combination will further enhance our customer service offering and create a leading platform in the industry.”

Contanda currently operates 15 bulk liquids terminals in North America with a total tank capacity of more than 7m bbl. BW Terminals operates three facilities in Louisiana (above) and Georgia, storing a wide range of petroleum, chemical and agricultural products. www.contanda.com

GOING OFFSHORE

Phillips 66 and Trafigura Corp have established a 50/50 joint venture, Bluewater Texas Terminal, to develop an offshore VLCC loading facility some 21 nm east of Corpus Christi for the export of crude oil. The plan is to install two single-point mooring buoys, subject to a final investment decision expected later this year once permitting has been completed.

As part of the move, Trafigura has withdrawn its application to develop the Texas Gulf Terminals deepwater port facility, lodged with the US Maritime Administration (MarAd) in July 2018.

The Bluewater Texas joint venture combines the unique market position that Trafigura has built in the US as a leading exporter and marketer of crude oil with Phillips 66’s commercial expertise, existing infrastructure network on the US Gulf Coast, and proven operating experience, including the safe operation of a single point mooring buoy in the UK since 1971. www.phillips66.com

INTER IN CHARGE

Inter Pipeline Fund has reported funds from its Inter Terminals division of C$115m for the full year 2019, up by C$49m over the 2018

figure following the acquisition of the NuStar Europe facilities in the UK and the Netherlands in late 2018 and new storage contracts in Denmark signed during 2019. Average tank utilisation increased from 77 per cent in 2018 to 87 per cent.

The integration of the former NuStar sites has expanded Inter Terminals’ network to 23 sites with a combined capacity of 5.8m m³; it is also now the largest independent storage provider in the UK, with more than 1.8m m³ to its name. Last December Inter Terminals reorganised its business structure to reflect that growth, with David McLoughlin appointed as managing director and country manager for the UK and Ireland, and Arjen Schneiders to the same role in the Netherlands. Other country managers look after terminals in Germany, Sweden and Denmark.

Inter Pipeline remains engaged in exploring the potential sale of its terminal business. “The sale process is ongoing and is expected to be concluded within the first half of 2020,” it says, although that conclusion could involve the sale of all or part of Inter Terminals or its retention by its parent. Any proceeds will be used to reduce debt and finance Inter Pipeline’s capital expenditure programme. www.interpipeline.com

CANADIAN COLLECTIVE

Greenergy has announced a merger with BG Fuels, a leading Canadian gasoline and convenience store retailer, which will see BG integrated into Greenergy over the course of this year. The combination of Greenergy’s supply chain expertise and growing independent dealer offer, together with BG Fuels’ national brand management and site operation capabilities is expected to create economies of scale and provide greater flexibility in fuel supply.

“Since entering the Canadian market in 2013, Greenergy has invested in strategic infrastructure in Ontario to deliver low-cost and resilient fuel supply to customers, and also introduced two new retail brands for the independent dealer market,” says Christian Flach, Greenergy CEO. “The merger with BG Fuels will allow us to extend our supply footprint and retail offer across Canada, enabling significant future growth. The experience and resources of both businesses will further strengthen our retail offer to the independent dealer market.”

Joe Calderone, BG Fuels’ CEO, who will join the board, adds: “Our extensive retail experience and commitment to consumers has seen BG Fuels become a leading fuel and convenience retailer in Canada. We look forward to leveraging Greenergy’s proven supply chain capabilities to enhance our portfolio of service stations across Canada.” www.greenergy.com

RUBIS ON THE UP

Rubis Terminal returned to growth last year, with a 6 per centincrease in its contribution to group EBIT at €49m. Rubis continues to invest in its terminals, expanding chemical storage capacity in the ARA zone and bitumen storage at its Dunkerque facility, while also adding more blending capacity for heavy oil products to help meet IMO 2020 requirements.

Rubis has also now signed a definitive partnership agreement with I Squared Capital, under which it will sell a 45 per cent share in Rubis Terminal to the infrastructure fund to provide the resources to accelerate its development programme. rubis.fr

LBC GETS TO WORK

LBC Tank Terminals has driven the first piles in the expansion project at its Rotterdam-Botlek terminal (below). The current ‘Rainbow II’ project will expand capacity at the site by 70,000 m³ to 180,000 m³, to serve a growing market for the storage and transhipment of chemicals in Rotterdam. Completion is scheduled for third quarter 2021.

LBC says the investment is part of a multi-year programme to revamp and expand the Botlek site. As part of that, it is also to expand its newly built deepsea jetty with two new berths. www.lbctt.com