News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

ODFJELL MAKES PLANS FOR TANKS

Odfjell has reported revenues from its tank terminal activities of $69.8m for the full year 2019, down from $91.0m a year earlier, although EBITDA improved by 11 per cent to $26.7m. Fourth-quarter revenues and EBITDA were up on the year earlier figures, despite the sale of Odfjell’s interest in the Jiangyin terminal in China during the third quarter.

Overall tank utilisation was steady at around 93 per cent for much of 2019, although the Houston terminal was full to the brim all year and will be Odfjell’s main target for growth.

Odfjell says it has been discussing investments in its US and Antwerp facilities with its joint venture partners with a view to improving and expanding capacity, and that work in this area will start this year and run through to end 2022. Odfjell is also considering selling its interest in its other Chinese terminals alongside Lindsay Goldberg, its former partner. Further announcements will be made in the coming quarters, Odfjell says. www.odfjell.com

RUBIS CASHES IN ON TERMINALS

Rubis has confirmed that it will sell a 45 per cent shareholding in Rubis Terminal, in which it currently owns 99.4 per cent, to I Squared Capital, a leading global infrastructure investor. The deal, which is subject to regulatory approval in various countries in which Rubis Terminal operates, values the company at some €1,000m, equivalent to 11.2 times its 2018 EBITDA.

“The joint venture will accelerate Rubis Terminal’s strategic plan to strengthen its position within its current footprint, diversify its product offerings and explore potential expansion outside of Europe,” Rubis says. The deal is expected to close in the first half of this year.

Rubis Terminal experienced a 14 per cent fall in revenues last year to €306m; this was concentrated in its wholesale business, with tank terminals and associated services showing a 4 per cent increase in revenues at €152m.

During the fourth quarter Rubis Terminal saw firm demand for petrochemical storage in Rotterdam and Antwerp, with tank occupancy near 100 per cent, although revenues from French operations were down after late receipt of fertilisers and the ending of a molasses contract. Its Turkish operations rebounded and posted a 133 per cent quarter-on-quarter improvement as the link to Iraq opened up. rubis.fr

LBC GROWS IN ROTTERDAM

LBC Tank Terminals is to expand storage capacity at its Rotterdam facility (below), adding 70,000 m3 of new chemical tankage to take total capacity up to 180,000 m3. LBC says the investment is part of a multi-year programme to revamp and expand the Botlek site in order to support the growing market for chemical storage and transhipment in the Port of Rotterdam.

As part of the work, LBC is also to expand its newly built deepsea jetty with two new berths. Completion of the project is scheduled for third quarter 2021. www.lbctt.com

VESTA ADDS IN ANTWERP

Vesta Terminals has announced a 150,000-m3 expansion of its Antwerp terminal. It plans to build five new 30,000-m3 tanks, specifically to handle jet fuel, and connections to the Central European Pipeline System (CEPS) to provide links to most major airports in north-west Europe. The terminal is already able to handle tankers of up to 160,000 dwt.

Construction is due to begin in first quarter 2021 with completion scheduled for 2022.

Meanwhile, Vesta commissioned a new barge jetty at the Antwerp terminal last month. It has also introduced the use of a hand-held explosion-proof tablet on which to document the ship/shore safety checklist. This saves time and paper and allows the completed checklist to be sent electronically both to its own office and to the barge. www.vestaterminals.com

WIBAX LOOKS FOR SAFETY

Wibax has completed construction of a new double-skin tank at its Norrköping terminal in Sweden. The tank, designed to hold up to 10,000 tonnes of liquid chemicals, is designed to contain any product in case of a leak in the inner tank shell. The tank cost some SKr 21m (€2m).

“Long-term, serious investment in safety is a crucial part of our operations,” says Anders Skoog, operations manager at Wibax Terminals, which operates eight terminals in Sweden and one in Finland. The Norrköping terminal has 20 tanks with a total capacity of some 43,000 m3 and can handle marine, rail and road transport. wibax.com

RECORD LIQUIDS AT BARCELONA

The Port of Barcelona handled 16.1m tonnes of liquid bulk in 2019, a 5.3 per cent increase on the 2018 volume and a record high. This reflected increased transit and import cargoes and, the port says, shows a strengthening of the port infrastructure as a hub for energy products from the Mediterranean and southern Europe. www.portdebarcelona.cat

MORE TANKS FOR NNOAT

Noord Natie Odfjell Antwerp Terminal has kicked off another round of expansion, with construction starting on a new tank pit with a total of 12,700 m3 capacity. It will include three tanks of 2,500 m3 and four of 1,300 m3 and is due to be in operation by the middle of this year.

The company is also working on facilities to help it handle block trains. This project is scheduled for completion by the end of this month. www.noordnatie.be

NEW IMAGE FOR NAVIGATOR

Navigator Terminals has launched a new website as part of a corporate rebranding exercise. “We are a dynamic, customer-focused company and one of our biggest aims is to create an effortless experience for all our customers,” the company says. “At Navigator we believe that the launch of our new website should provide a fantastic, interactive place to keep up with the latest news about all things Navigator Terminals. We want to provide customers and prospective customers alike, with all the information they need to make informed decisions on utilising our storage facilities. Our new site will provide stats and insight into all of our terminals, as well as the people at the forefront of the day-to-day management of the business. www.navigatorterminals.com

DISPOSALS FOR MAGELLAN

Magellan Midstream Partners has agreed to sell its marine terminals in New Haven, CT, Wilmington, DE and Marrero, LA to Buckeye Partners for $250m. “Magellan remains focused on capital discipline and managing our business for the long term,” says Michael Mears, CEO. “Optimisation of our asset portfolio, including divestiture of facilities outside our strategic footprint, is an important element to maximise unitholder value and our strong financial position.” The deal is expected to close late in the first quarter. www.magellanlp.com

ETHYLENE FROM HOUSTON

The new ethylene export terminal Morgan’s Point on the Houston Ship Channel, developed as a joint venture between Enterprise Products Partners and Navigator Holding, has commenced operations. The first 11,340-tonne cargo was loaded in early January aboard the gas carrier Navigator Europa for delivery to Marubeni.

“The opening of the jointly owned ethylene export terminal represents the beginning of an expansion of the export of valuable intermediate petrochemical gas products including ethylene and propylene,” says David Butters, executive chairman of Navigator Gas. “We expect this trend of exporting intermediate petrochemical gases to accelerate, benefiting our specialised tankers. Furthermore, we are working in the development of domestic and international infrastructure projects that will facilitate this important trend.”

“We are very pleased to join forces with Navigator to bring this new terminal to fruition, which complements Enterprise’s integrated pipeline and storage network, including the development of open market hubs for ethylene and polymer-grade propylene that help ensure price transparency, reliability and flexibility for petrochemical producers and consumers,” adds AJ ‘Jim’ Teague, CEO of Enterprise’s general partner. www.navigatorgas.com