News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

OT OUT OF SA PLAN

Oiltanking Grindrod Calulo has pulled out of the Ngqura project in South Africa, saying that it “has not been able to achieve a commercially viable business case” for the proposed terminal development. “The evolving market and commercial requirements for a reduced terminal capacity and land could not be accommodated in the parameters of the TNPA procurement process,” the company states.

Oiltanking Grindrod Calulo, a joint venture involving Oiltanking, Grindrod and Calulo Investments, was awarded preferred bidder status in 2011 by Transnet National Ports Authority (TNPA) to develop a bulk liquids storage terminal in the port of Ngqura; the plan was that this should replace the existing fuel import terminal in Port Elizabeth. www.oiltanking.com

CASH FOR STATIA

Prostar Capital has secured a $15m coinvestment from an unnamed institutional infrastructure investor, building on a previous commitment that will see the investor take a minority shareholding in GTI Statia, the crude oil and refined products terminal on the Dutch Caribbean island of St Eustatius (above). The investment will help accelerate a $100m programme to improve the site over the next two years, which includes tank refurbishments and upgrades to marine infrastructure. Prostar and GTI Statia intend to increase the in-service capacity at the terminal to attract several new customers.

The plan aims to improve the facility’s flexibility, a critical factor for storage operators, by enabling the transition to low-sulphur marine fuel as dictated by the IMO 2020 regulations. The investment is also expected to increase the demand for local skilled labour and to attract a key workforce to the island in order to optimise the terminal.

“We’re excited to receive this ongoing support from our investors as we embark on a shared vision to enhance the performance of GTI Statia’s existing infrastructure and attract new, global long-term customers that recognise the strategic value of this terminal in the global energy trading value chain,” says Steve Bickerton, senior managing director of Prostar Capital. gtistatia.com www.prostarcapital.com

JUBAIL TAKES CHEMTANK STAKE

Sabic and Vopak have agreed to sell a 20 per cent stake in their jointly owned Jubail Chemical Storage and Services Company (Chemtank) to Jubail and Yanbu Industrial Cities Co (JYIC); on completion, Sabic will retain a 58 per cent holding and Vopak 22 per cent. The transaction is subject to regulatory approvals. JYIC is owned by the Royal Commission for Jubail and Yanbu and the deal is said to be in line with Saudi Arabia’s National Industrial Development and Logistics Programme.

Chemtank operates a 568,000-m3 tank terminal in the King Fahd Industrial Port in Al-Jubail and serves the local petrochemical plants, including Sabic and Sadara. www.vopak.com

IMTT CHANGES HANDS

Macquarie Infrastructure Corp (MIC) has agreed to sell its International-Matex Tank Terminals (IMTT) business to an affiliate of Riverstone Holdings for some $2.685bn in cash and assumed debt. The deal is expected to close in early 2021, subject to approvals and other conditions. IMTT owns 19 bulk liquids storage terminals in the US and Canada.

“We are pleased with the result of our efforts to sell IMTT against the challenging backdrop created by the Covid-19 pandemic,” says Christopher Frost, MIC’s CEO. “We have achieved a favourable outcome for MIC shareholders consistent with our strategy of unlocking value via sales of our operating businesses.” www.imtt.com

KOOLE HOT FOR BOTLEK

Koole Tankstorage Botlek Holding is to build an 80,000-m3 tank storage terminal in Rotterdam to handle oils and fats for Marvesa Supply Chain Services. The development will include offices and garage facilities for the operations of Marvesa Tank Transport and will be located next to the existing Koole terminal in the Botlek area of the port.

“For the Marvesa Group, this is an important next step in realising our growth strategy, having available a fully dedicated tank storage terminal operated by the Koole team, with direct deep water and road access at a unique location in the port of Rotterdam,” says Bart de Bruycker, Marvesa Group CEO (below). “This will allow us to even better and more efficiently serve our international customer and supplier base. Last but not least, the set-up of the new tank storage terminal fully supports our base fundamental that our products will always meet the requirements of all relevant quality standards.”

“I am thankful and proud that Marvesa choose Koole Terminals to develop and build this unique terminal project. Using state-ofthe-art technics in our design, that will enhance safety of our operations, but also increase truck loading efficiency, vessel handing and customer care,” adds John Kraakman, CEO of Koole Terminals. “This new Rotterdam terminal fits also very well in our sustainability ambition; this additional capacity enables us to strengthen our position in the storage and handling of feedstock for the production of renewable energy products together with our supply chain partners.” koole.com

ODFJELL BUYS KOREA SHARE

Odfjell has agreed to acquire Lindsay Goldberg’s 24.5 per cent shareholding in Odfjell Terminals (Korea) for $19m. On completion, Odfjell will control 50 per cent of the company, which operates a 313,710-m3 chemical terminal in Ulsan, alongside local partner KPIC. Last year it generated a net profit for Odfjell of $0.7m on its $2.2m share of revenues.

“We are pleased to have reached an agreement with LG to acquire their stake in OTK,” says Kristian Mørch, Odfjell’s CEO. “OTK is a high-quality terminal and represents a good fit with our strategy for Odfjell’s terminal division. As such, this is another milestone in completing the restructuring of our terminal portfolio and our strategy to focus on chemical terminals where we can harvest synergies with Odfjell Tankers or have another angle for further value creation by Odfjell. The acquisition will have a positive effect on results, return and cash flow for Odfjell SE, and also ensure a simple and efficient governance structure for OTK.” www.odfjell.com

PHIL COASTAL’S NEW OWNERS

Philippine Coastal Storage & Pipeline Corp (PCS), which operates the largest petroleum products import storage facility in the Philippines, is set to change hands. Current owner Philippine Investment Alliance for Infrastructure (PINAI) has agreed to sell the terminal’s parent company, Philippine Tank Storage International (Holdings) Inc, to Keppel Infrastructure Fund Management (KFIM) and Metro Pacific Investments Corporation (MPIC).

Under the agreed deal, KFIM’s Keppel Infrastructure Trust (KIT) will pay $267.0m for an 80 per cent share, with the remaining 20 per cent going to MPIC, though there is also an option for MPIC to increase its shareholding.

Matthew Pollard, CEO of KIFM, says: “As the largest petroleum products import storage facility in the Philippines, where demand for petroleum products is expected to grow, PCS presents an attractive opportunity for KIT to capture opportunities arising from the strong macroeconomic outlook as well as robust growth fundamentals for imported petroleum products in the Philippines.”

PCS operates three tank farms and one marine terminal in the Subic Bay Freeport Zone and is currently engaged in an expansion project that will take total storage capacity up to some 6m bbl early in 2021. The change of ownership is expected to be completed in January. www.philcoastal.com www.kepinfratrust.com