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THE TERMINAL ZONE
THE RICOH ARENA in Coventry has for some years now provided a regular welcome to the UK Tank Storage Association (TSA) and its annual conference and exhibition. And so it was again that visitors thronged once more to the venue this past 26 September, eager to see what was new on the stands and hear the latest from the conference presenters. Conference attendees were welcomed by Adrian Jackson, TSA vice-president and CEO of the UK’s pipeline agency, OPA. He reminded them to take the time to visit the 62 exhibitors
UK but this year proceedings were kicked off with a paper looking at the commercial environment for storage terminal operations, in what Giacomo Boati, executive director for midstream and downstream oil markets at IHS Markit, described as “a very interesting time for storage”. NEAR-FUTURE FUELS The International Maritime Organisation’s (IMO) new restrictions on sulphur oxide emissions from ships, which take effect on 1 January 2020 – the so-called ‘IMO 2020’ rule
all around the world – and simultaneously. Boati said industry should not expect low-sulphur fuel to be available in sufficient quantities on the deadline and said he anticipates non-compliance rates of around 15 per cent. Quite how oversight of compliance is to be achieved is as yet not clear. In the longer term there is further uncertainty arising from the move towards decarbonisation in transport fuels. However, Boati said, most of the growth in the global car parc over the next ten years will be gasolinepowered, largely because of rising car ownership in China. In IHS Markit’s model, the use of alternative fuels in road transport will only really take off after 2025 and he expects 30 per cent of the global car fleet (and 50 per cent in Europe) will be powered by alternative fuels by 2040. In heavy goods vehicles, diesel will likely remain the most widely used fuel because of its cost and efficiency. Growth is apparent in all transport sectors,
in the hall outside and to see what was on show, before handing over to the conference chair, HCB’s editor-in-chief Peter Mackay, who moderated the event with his usual aplomb. TSA always invites representatives of the competent authorities to speak on compliance issues facing the tank storage industry in the
– are aimed at changing the behaviour of ship operators. However, the need to supply low-sulphur bunker fuels around the world immediately on that deadline is, Boati said, “the most disruptive event in the oil market for decades”. It will affect all players in the fuel oil and middle distillate supply chains
including air and sea, but the challenge will be to ensure sustainable growth in view of the carbon dioxide emissions reduction targets being touted by the UN and other agencies. So what does all this mean for storage terminals? The news is not that bad, Boati said. Overall, global oil product demand is forecast
CONFERENCE REPORT • WE MAY BE LIVING IN UNCERTAIN TIMES BUT THE TANK STORAGE INDUSTRY NEEDS TO DEAL WITH THINGS AS THEY ARE. TSA’S ANNUAL CONFERENCE WAS THERE TO HELP
HCB MONTHLY | NOVEMBER 2019
