News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

VTTI BUYS IN FUJAIRAH

VTTI has acquired IL&FS Prime Terminals (IPTF), which operates a 333,500-m3 terminal in the heart of Fujairah; VTTI will take a 90 per cent holding, with the Fujairah government retaining its 10 per cent share. The holding has been acquired from India-based investment group IL&FS, which says that there is room to expand the terminal to a capacity of some 600,000 m3 .

“Fujairah is one of the four key oil hubs in the world,” VTTI notes. “Its long-term strategic importance is underpinned by large-scale refining and advantaged crude economics. The acquisition of this high quality facility puts FTL in a unique position in handling all petroleum products with the most flexible configuration, while increasing operational synergies within its existing terminal in the Port of Fujairah.” VTTI currently has a 1.9m-m3 terminal handling crude oil and refined products, along with an associated refinery and processing units, in Fujairah. www.vtti.com

ODFJELL UPS THROUGHPUT

Odfjell Terminals achieved third quarter revenues of $17.9m, slightly behind the prior quarter but up on the $16.3m recorded in third quarter 2020. Odfjell’s terminals experienced strong growth in throughput, with the third quarter ending with the highest levels seen since first quarter 2019 following continued recovery in business levels in Houston and high activity at the Noord Natie joint venture terminal in Antwerp, after the construction of additional tankage. Another 35,000 m3 of stainless steel capacity is due onstream in Antwerp during 2022.

The terminals in the US noted a strong quarter, with high demand for storage capacity and increased activity levels. “The US market is still experiencing disruption in production and low inventory levels resulting in reduced exports and a focus on meeting local demand. With a build-up of inventory levels, we expect to see a continued recovery in export activity,” Odfjell says. The expansion of the Houston site has been delayed following weather-related interruptions; subject to a final investment decision, the new tankpit is now scheduled for completion in fourth quarter 2023.

Odfjell’s Ulsan terminal in South Korea (above) experienced another weak quarter, caused by a combination of lower regional chemical production and weaker demand for petrochemicals and base oils caused by the ongoing Covid-19 pandemic. The region also suffered from port congestion and bottlenecks in several key ports in China, Odfjell notes. www.odfjell.com

STOLT’S CEYHAN PLAN

Stolthaven Terminals is planning to develop a new greenfield terminal in Ceyhan, Turkey in a joint venture with Rönesans Holding, which is behind the Ceyhan Petrochemical Industrial Zone. In the first phase, the terminal will provide services to Ceyhan Polipropilen Uretim, the first project being developed in the Zone, which plans to produce 450,000 tonnes of propylene per year by propane dehydrogenation.

Plans for the terminal include the construction of additional storage capacity, which will likely be added during the first phase of the project, to serve customers who have expressed an interest in the import and storage of LPG. A final investment decision is expected before the end of this year, subject to final internal and external approvals.

“The terminal will initially focus on the safe and efficient handling and storage of industrial gases, but early market studies also indicate that there is potential to develop chemical storage capacity to service the eastern region of Turkey, which is currently serviced mainly by trucks from the west of the country,” says Guy Bessant, president of Stolthaven Terminals. “The investment in Turkey, a country with a growing economy and strong demand for chemicals, would be complementary to our existing global network and increase the reach of the supply chain solutions that we are able to offer our customers.” www.stolt-nielsen.com

KOOLE TO HANDLE AMMONIA

Koole Terminals and Horisont Energi have signed an MOU to collaborate on the development of a terminal and storage facility in Rotterdam to handle ammonia shipped from Norway. The agreement will also cover technical and commercial conceptual models for storage of ammonia products, services solutions and technologies for further distribution, to meet forecast demand in north-west Europe.

Horisont Energi recently announced a cooperation agreement with Equinor and Vår Energi, the two largest offshore oil and gas producers in the Barents Sea region, on the joint development of the Barents Blue project, Europe’s first large-scale production facility for blue ammonia, in Hammerfest in northern Norway.

“I’m excited to announce this agreement,” says Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi. “As Horisont Energi and our partners work towards developing Europe’s first world-scale clean ammonia project, it is essential to establish relationships with key storage, handling and transport partners in the region, to ensure our clean ammonia can reach all potential clients.”

“We are eager to work with Horisont Energi to materialise their European distribution hub for blue ammonia,” adds John Kraakman, CEO of Koole Terminals. “We consider ammonia as one of the important future liquid energy carriers, and as such this project fits very well with Koole’s sustainable energy strategy.” koole.com

PACIFIC TERMINAL SWITCH

TransMontaigne Partners has acquired SeaPort Financing, which, like TransMontaigne, is owned by funds managed by ArcLight Energy Partners. As part of the deal, TransMontaigne has acquired the SeaPort Sound Terminal in Tacoma, Washington, a 51 per cent interest in SeaPort Mistream Partners, which owns liquid products terminals in Seattle and Portland, Oregon, and a 30 per cent interest in a local pipeline.

“This transaction enables us to expand our geographic reach to the US Pacific Northwest through critical and highly contracted infrastructure assets, while also accelerating TransMontaigne’s progression as a leader in the growing renewable fuels logistics space,” says Fred Boutin, CEO of TransMontaigne.

“This group of high‐quality assets position TransMontaigne as the only independent terminal operator with operations in every major market within the Pacific Northwest,” Boutin adds. “Notably, the SeaPort Sound Terminal owns the only independent end‐market unit train facility in the Puget Sound and has a critical role in the growing renewables supply needs of the region.” www.arclight.com www.transmontaignepartners.com

BROTHERS IN BREMEN

UTG Unabhängige Tanklogistik, independent operator of tank storage terminals in northern Germany, has been sold to DS EnergieHolding, a wholly owned subsidiary of Diersch & Schröder (DS), which is also headquartered in Bremen. Subject to regulatory approvals, the transaction is expected to close next month.

UTG’s managing partner Jens Janssen will step down on completion of the sale, with leadership taken up by Ian Petri, managing director of DS unit Weser-Petrol Seaport Tank Farm. UTG will continue to operate as an independent storage company, with a specialisation in vessel bunkering and slop reception. Following the acquisition, DS will expand its portfolio to more than 730,000 m3 of tank space at ten locations in northern Germany. utg-tanklogistik.de www.ds-bremen.com