News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

ANTWERP BUYS ITS PIPELINES

Antwerp Port Authority has agreed to acquire Nationale Maatschappij der Pijpleidingen (NMP) from Ackermans & van Haaren and Electobel. NMP operates 720 km of pipelines, 90 per cent of which serve chemical and petrochemical companies in the port and its hinterland.

“Pipelines are the ideal mode of transport for the chemical industry and oil refining,” explains Port Authority CEO Jacques Vandermeiren. “By giving them access to a pipeline network that is open to all users we gain on at least two fronts: we help to reinforce the presence in the port of this sector which is so important for the economy of Belgium and Flanders, and the many logistics flows in and around the port area are further established in the Antwerp region. Furthermore, pipelines are the most environment-friendly, energy-efficient and safe means of transport.”

NMP was set up in 1978 by the Belgian government in order to coordinate the Belgian pipeline network for transport of petrochemical products. Over the past 40 years it has become an important link in the cost-efficient logistics chains of many chemical and petrochemical companies in the port.

“Our cluster companies confirm the importance of pipelines, but the high initial investment cost is frequently a barrier preventing them from actually switching to pipeline transport,” explains Vandermeiren. “Because we really want to make the modal shift happen, with goods being carried by sustainable transport methods such as rail and barge, as well as by pipeline, not only are we taking over control of this pipeline network but we also seek to harness the know-how and expertise of the NMP personnel to further expand this network. In this way the present chemical companies and others who come along in future will have an easier transition to pipeline transport, which is the most sustainable option for them.” www.portofantwerp.com

VOPAK ON THE SLIDE

Vopak has reported third-quarter EBITDA excluding exceptional items of €176.4m, down from €203.8m for the same period last year. Revenues were down 5 per cent at €312.1m, overall, with declines in all operating divisions except the Americas (other than the US).

The company reports tougher market conditions in Asia as well as unexpected expenses during the quarter, including jetty damage in Singapore. Vopak says it is now expecting full year EBITDA to be about 10 per cent below last year’s €822m, taking account of market dynamics and the effect of terminals divested in 2016. www.vopak.com

VIVA GOES LARGE

Viva Energy has put into service a 100,000-m3 crude oil storage tank at its Geelong refinery in Victoria, Australia. The tank is the country’s largest and will increase the company’s storage capacity by 40 per cent. It will also increase production capabilities at the refinery and improve fuel supply security in Victoria.

Viva Energy has also added a new jet fuel gantry at the refinery along with a new pumping station to increase pipeline supplies of fuel to Melbourne. It is also planning to install a 25,000-m3 gasoline tank and construct a bitumen export facility. www.vivaenergy.com.au

MOBIL RENEWS NZ TANKS

Mobil Oil New Zealand is to build two new tanks at its fuel terminal in Lyttelton to replace tanks damaged in a landslide in 2014. “Construction of new tanks will restore fuel storage capacity at our Lyttelton operation, which, along with the Lyttelton-Woolston pipeline and Woolston Terminal, is an important part of the fuel supply chain in the South Island,” says Andrew McNaught, country manager for Mobil.

The new tanks, which will be used to store gasoline and diesel, are due in service in 2019. www.mobil.co.nz

GIBSONS PLANS MORE TANKS

Gibson Energy has posted third-quarter EBITDA of C$48.0m, up from C$45.6m a year ago, and a net loss of C$8.5m, down from a loss of C$30.8m in the previous year. “We continue to deliver strong operations while executing on our strategy to focus on growing our long-term, high quality cash flows within the Infrastructure segment,” says Steve Spaulding, president/CEO.

“During the quarter, Gibsons sanctioned an additional 1.1m bbl of new tankage at the Hardisty Terminal, demonstrating the asset’s commercial competitiveness in a modest oil price environment and providing additional visibility on how the company will continue to grow its Infrastructure segment,” Spaulding adds. The new capacity at the facility in Alberta is expected to be placed into service in third quarter 2019, bringing total capacity up to some 10m bbl.

Gibsons expects to invest between C$115m and C$140m in terminal expansion projects this year, mainly at the Hardisty site, lower than in previous years following major work at the Edmonton terminal. “We continue to expect that we will sanction one to two tanks per year on a run rate basis in a flat oil price environment, but also believe that the company needs to further leverage its existing asset base to drive additional growth,” Spaulding says. www.gibsonenergy.com

TRANSMONTAIGNE GROWS AND GROWS

TransMontaigne Partners has reached agreement to acquire the Martinez and Richmond terminals in California from Plains All American Pipeline for $275m. The west coast facilities will expand TransMontaigne’s storage and terminalling footprint in the San Francisco Bay area refining complex. The deal was expected to close on or about 1 January 2018.

“We believe that this transaction strengthens our position as one of the leading refined products terminalling and transportation service providers in the country,” says Fred Boutin, CEO of TransMontaigne Partners.” Together, the two terminals offer some 5.4m bbl (860,000 m3) of storage capacity for refined products and crude oil in 64 tanks.

TransMontaigne Partners has also reported net earnings for the third quarter of $11.0m, down on the $11.9m recorded a year earlier, although consolidated EBITDA rose from $23.5m to $25.4m. The company achieved another quarter of record revenue of $45.4m, up 11.8 per cent year-on-year. The period also saw completion of the 2m-bbl first phase expansion of its Collins terminal in Mississippi; the company has recently received air permits for a second phase, which will add up to 5m bbl of additional capacity. www.transmontaignepartners.com

BLACKLINE’S FIRST FORAY

Blackline Midstream has acquired SEA-3, which owns a major propane storage and distribution facility in Newington, New Hampshire, from Trammo Inc. The new owners plan to expand rail access at the site “in order to position SEA-3 as the most flexible and reliable propane supply terminal in the north-east US”.

The facility has a propane storage capacity of 530,000 bbl, rail and truck loading racks, and a marine dock capable of handling oceangoing vessels. In addition, SEA-3 has a fully approved upgrade project which will significantly increase the rail unloading capacity of the terminal giving it access to both domestic and international markets.

Blackline Midstream was formed in November 2017 by Blackline Partners LLC and TPG Sixth Street Partners with the purpose of acquiring and developing oil and gas midstream infrastructure assets. The SEA-3 acquisition is its first investment in the sector. Trammo’s Houston-based team involved in its operation have transferred to Blackline Midstream, which also has an office in Houston, and the SEA-3 terminal personnel will remain in place. “All existing commercial agreements will be carried forward, and customers of the terminal will experience a seamless transition following the acquisition,” says David Herr, who is managing commercial operations at Blackline Midstream. blackline-partners.com

RIGHT: SEA-3’S NEW HAMPSHIRE LPG TERMINAL IS

BLACKLINE’S FIRST INVESTMENT IN THE OIL AND GAS