News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

RUBIS CLOSES TEPSA DEAL

Rubis Terminal, a joint venture between Rubis and I Squared Capital, has completed the acquisition of Terminales Portuarias (Tepsa) from Pétrofrance. Tepsa operates four bulk liquids storage terminals in Spain with a combined capacity of 912,000 m3, handling chemicals, biofuels and conventional fuels. Tepsa generated revenues of €52m in 2019 and has, Rubis says, “significant growth potential”. The deal increases the size of Rubis Terminal by some 30 per cent; it now has 4.6m m3 of tank capacity across 17 sites in five countries.

“We have full confidence in the success of the integration between the two companies,” says Bruno Hayem, CEO of Rubis Terminal. “Rubis Terminal and Tepsa share common values and vision. This similarity comes from our histories, industrial cultures, and successoriented workforces. Our new collaboration has already been very successful with the recent issuance of our €150m additional senior secured notes.”

Nuria Blasco, CEO of Tepsa, says: “We are looking forward to being part of Rubis Terminal, with its exceptional growing opportunities for Tepsa and its team members. We already feel as if we have known each other for years.” Jacques Nahmias, chairman of Pétrofrance SA, adds: “The completion of the sale of Tepsa represents an important milestone in the history of the company and its parent Pétrofrance. We are very happy about this transaction that allows Tepsa to join a group with an international presence, with common values and which will support its continued development.” www.rubis-terminal.com www.tepsa.es

BWC BUYS TEXAS CITY SITES

NuStar Energy has agreed to sell its two bulk liquids storage terminals in Texas City to BWC Terminals for $106m. The deal is expected to close before the end of the year. Together, the two sites have a storage capacity of 2.81m bbl (450,000 m3) and handle a wide range of refined products and chemicals.

“While the Texas City terminals are great assets with outstanding operations and employees, the location and unique configuration of these terminals are no longer synergistic with NuStar’s strategies for our other Gulf Coast assets,” says Brad Barron, president/CEO of NuStar. “For this reason, we determined that the best path forward for the continued success of these facilities and NuStar is to allow them to be acquired by an entity that can take advantage of the terminals’ niche petrochemical and petroleum capabilities. We are pleased that BWC Terminals has just such a business model.

“And while it was a difficult decision, this divestiture will allow us to deploy the proceeds to further improve our debt metrics and self-fund a larger proportion of our capital programme,” Barron adds. “We are pleased that our Texas City employees will now have the opportunity to be a part of a strong and growing company with a business model that is more operationally synergistic with the strengths of these terminals. This should create more growth opportunities for the operations and provide employees with more resources to ensure their continued growth and success as well.”

Mike Suder, CEO of BWC Terminals, says: “I’m confident that Texas City is a natural fit for the BWC organisation. Like NuStar Texas City, we store a diverse array of liquids - including hydrocarbons, chemicals,

and agricultural products - and we believe the strength of our combined business will help further develop Texas City’s operational capabilities.”

BWC says the acquisition will allow it to further strengthen its position along the US Gulf Coast to support its strategic business objective to deliver innovative liquid storage solutions across North America in the petrochemical, hydrocarbon, and agriculture markets. www.bwcterminals.com www.nustarenergy.com

OT UPDATES COPENHAGEN

Oiltanking has completed construction of 78,000 m3 of new storage capacity and related infrastructure at its Copenhagen terminal (opposite), creating a distribution hub for one of the largest fuel retailers in Denmark. The new state-of-the-art facility was, Oiltanking says, built in accordance with the highest standards of safety and environmental protection.

Oiltanking acquired the site in 2016 and has since completely redeveloped it specifically to handle road fuels, biofuels and additives to supply service stations in Zeeland and Copenhagen, as well as supplying diesel to industrial customers. The three loading gantries are open around the clock and are highly automated. www.oiltanking.com

ODFJELL BACK TO NORMAL

Odfjell Terminals generated EBITDA of $7.8m in the third quarter 2020, slightly ahead of the year earlier, though net income was well down on both third quarter 2019 and second quarter 2020. Despite the Covid-19 crisis, Odfjell reports that all its terminals are operating normally and that average occupancy reached 99 per cent over the quarter.

Odfjell says that activity levels at its terminals are rebounding and that the average number of handlings was up by some 16 per cent compared to the second quarter, indicating some normalisation in activity.

Odfjell is progressing its growth plans for the Houston terminal, with the refurbished tanks in Bay 17 due back into service this year. The company is also moving towards a final investment decision on a 32,000-m3 expansion for speciality chemicals, planned to come onstream in 2022, and is still considering a larger expansion to come into operation from 2024 onwards, contingent on market support. www.odfjell.com

MORE TANKS FOR COOGEE

Coogee has commenced construction of two new storage tanks at its facility in Kwinana, Western Australia (below). One will store urea ammonium nitrate (UAN) fertiliser in a dedicated 50,000-tonne tank, while the second, of the same size will expand storage capacity for caustic soda at the site.

UAN is a key product for farmers in the state and the new tankage and road tanker loading gantries will enhance efficiency and ensure security of supply. Coogee manufactures caustic soda at its chloralkali plants in Kwinana and Kemerton, also in Western Australia; the new tank will double storage capacity for the product, an essential feedstock in the lithium sector.

Both new tanks will be directly connected by pipeline to the Kwinana Bulk Jetty and are expected to be in service in the second quarter of 2021. www.coogee.com.au

ILTA NEXT OCTOBER

The International Liquid Terminals Association (ILTA) has announced the dates for its 2021 Annual Operating Conference and Trade Show, which had to be postponed and subsequently cancelled this year in light of the Covid-19 pandemic. Next year’s event is now scheduled for 4 to 6 October at the usual venue in Houston.

“In the longer term, we plan to return to our traditional May or June timeframe for the show,” says ILTA president Kathryn Clay. “But, given the current environment, we decided that moving the event to later in the year would give our exhibitors, speakers, and attendees better certainty for their planning purposes. ILTA is looking forward to bringing our industry back together in person next year for three days of educational enrichment, networking and demonstrations of new goods and services.” www.ilta.org