News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

TSA ON ESG

The UK Tank Storage Association (TSA) has formally launched its new Environmental, Social and Governance (ESG) charter, affirming the sector’s shared commitment to ESG principles. The charter has been developed in conjunction with member organisations and is accompanied by a framework designed to help its members develop clear and common policies.

“TSA’s members play a vital role in the UK’s economy by providing the critical infrastructure necessary for the transportation of bulk liquids, creating jobs and fostering innovation,” says executive director Peter Davidson. “Through adherence to the Charter, our members affirm their shared commitment to environmental, social and governance principles. Our association continues leading from the front and this, together with our Safety Leadership Charter and Significant Indicators programme, demonstrates our commitment to strive for continuous improvement.” tankstorage.org.uk

BLUEKNIGHT OUT OF CRUDE

Blueknight Energy Partners has agreed to sell its crude oil terminalling, pipeline and trucking businesses for $162m cash, repositioning the partnership as a pure-play downstream terminalling company. The crude oil terminals, including some 6.6m bbl of capacity at the Cushing hub in Oklahoma, are to be acquired by Enbridge, subject to Hart-Scott-Rodino review, with the transaction expected to close by late February.

“This announcement represents a significant milestone as we transition Blueknight away from traditional oil and gas operations into a pure-play, downstream terminalling business focused on infrastructure and transportation end markets,” says CEO Andrew Woodward. “We are excited about the financial flexibility to both materially improve our balance sheet and pursue future investment opportunities predicated on risk-adjusted returns while maintaining our long-term financial targets.”

Blueknight is owned by affiliates of Ergon and concentrates on asphalt terminalling and logistics. www.bkep.com

ZENITH ADDS THREE

Zenith Energy Terminals has acquired Bulk Terminal Storage (BTS) from Guttman Realty. BTS owns three storage in terminals in Ohio, Pennsylvania and West Virginia, acquisition of which will bolster Zenith’s terminal infrastructure in the Marcellus and Utica Shale basins.

“This acquisition further develops our existing network of terminals in key US markets and enables us to promote growth in alternative fuels, addressing two of Zenith’s strategic priorities,” says Jeff Armstrong, president/CEO of Zenith. “We are excited about expanding our relationship with Guttman Energy, one of our key customers. We look forward to implementing our approach to safety and environmental stewardship at our new terminals and leveraging the new storage capacity to support customers with renewable diesel, biofuel and ethanol storage needs. Further to that effort, we are thrilled to work with our new team members to provide the highest quality of service to our customers in the region.”

Following the transaction, Guttman has entered into a multi-terminal agreement with Zenith to strengthen and expand its wholesale and commercial fuel distribution business across its mid-Atlantic and east coast marketing area.

The 353,000-bbl (56,100-m3) Aurora terminal (below), located between Akron and Cleveland, Ohio, is supplied by a Buckeye pipeline and handles biodiesel, ethanol, gasoline and distillates for the local market in north-east Ohio and western Pennsylvania. The 157,000bbl (25,000-m3) Belle Vernon facility in Pennsylvania received distillates by barge on the Monongahela River, as does the smaller (53,000-bbl) Star City terminal near Morgantown, West Virginia. zenithterminals.com

ALL CHANGE AT INTER

Inter Pipeline has announced annual funds from operations in 2020 of C$792m, down 9 per cent on the prior year, with the loss concentrated in its NGL processing and conventional oil pipeline businesses. In contrast, its oil sands transport and bulk liquids storage businesses both posted record levels of income. Inter Terminals, its bulk liquid storage division, generated annual funds from operations of C$129.2m, an increase of C$14.2m over 2019, despite the sale of the larger part of its network in mid-November.

Inter Pipeline has now embarked on a comprehensive review of its strategic alternatives, following an unsolicited expression of interest from Brookfield Infrastructure Partners to acquire all the outstanding shares it does not already own. Inter Pipeline’s board does not regard Brookfield’s offer, which has not been formally made, as reflecting the intrinsic value of the company. The review will evaluate a broad range of options, including exploring a possible corporate transaction, while continuing to seek a partner for a material interest in the Heartland Petrochemical Complex. No timetable has been set and there is no indication that it will necessarily lead to any transaction.

The Inter Terminals business in the UK, Ireland, Germany and the Netherlands, acquired by CLH this past November, has been renamed Exolum as from 12 February. Inter Terminals Ltd is now Exolum Terminals Ltd; Inter Terminals UK Ltd is Exolum Storage Ltd, while the individual terminals change “Inter Terminals” to “Exolum”. The Inter Terminals businesses in Sweden and Denmark, which were not acquired by CLH, will retain their name. Emails are changing this month to the @exolum.com domain. All other contact details will remain as they are. www.interpipeline.com clh.interterminals.com

CHANGING HANDS IN ROSTOCK

Euroports Terminals Rostock has agreed to acquire Total Deutschland’s 50 per cent stake in their jointly owned Grosstanklager-Ölhafen Rostock (GOR) terminal (below) and the former Minol tank farm. The joint venture was founded in 1996 and Total Deutschland will continue to use storage capacity at the site for a further ten years.

GOR offers some 700,000 m³ of tank capacity for mineral oils, vegetable oils and other liquids. It also operates Total’s Minol tank farm and storage tanks at PCK Raffinerie Schwedt and Dow Olefinverbund’s Böhlen site.

“We would like to thank Euroports for the good cooperation over the past years,” says Christian Cabrol, managing director of Total Deutschland. “Our two companies are united by a high standard of safety, quality and performance. The sale is in line with the group’s strategy of actively managing its asset portfolio. The long-term stock turnover contracts that have now been concluded testify to our confidence in a successful continuation of the cooperation.”

Frédéric Platini, chairman of Euroports Group, adds: “With this new investment, Euroports will strengthen its strategic position in Rostock in Germany and further diversify its operations into the liquid bulk sector. We are fully committed to continue to operate following the highest standard of safety and quality required by this industry.” euroports.de

RUBIS ENDS WELL

Rubis Terminal has reported a strong end to 2020, with storage revenues up 30 per cent year-on-year at €56.5m. Performance was strong in the ARA zone, where revenues rose by 14 per cent as a result of additional capacity and occupancy rates close to 100 per cent, and in Turkey, where the contango and increased transit demand from Iraq boosted revenues by 70 per cent. The French market was stable, with weak automotive fuel demand being partially offset by new bitumen activity. For the year as a whole, revenues rose 10 per cent to €186m.

Rubis notes that, following its acquisition of Tepsa this past October, it has “significantly increased its exposure to chemical and biofuel storage” and that fuel sales now account for 50 per cent of overall sales, compared to 70 per cent in 2016. rubis.fr