News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

VOPAK’S EUROPEAN CLEAR OUT

Vopak has completed the sale of its terminals in Amsterdam and Hamburg to First State Investments for a total consideration of some €600m. Vopak will book an exceptional after-tax gain of around €190m in its third-quarter figures.

The sale of Vopak’s Algeciras terminal had not been finalised as this issue went to press. Vopak had been in discussion with its minority partner, Vilma Oil, to buy Vopak’s 80 per cent share but the plan is now for Vopak to buy Vilma’s 20 per cent interest and sell the facility to First State. The transaction is valued at €125m, from which Vopak expects to book an exceptional gain of some €10m. www.vopak.com

HOUSTON WORK FOR ODFJELL

Odfjell Terminals (Houston) (OTH) has been selected to provide bulk liquid terminal services for a new acrylonitrile styrene acrylate plant being built by Ineos Styrolution at its existing complex in Bayport, Texas. Odfjell’s responsibilities will include the receipt, storage and pipeline transfer of butyl acrylate and acrylonitrile feedstocks, using Odjell’s nearby bulk liquids terminal as the initial receiving point. The new Ineos unit is due to be commissioned in 2021. “OTH is extremely honoured to partner with Ineos Styrolution on its new Bayport ASA plant. We look forward to supporting this new plant and possibly other Ineos efforts for many years to come,” says Bill Law, senior manager, sales and business development at OTH. www.odfjell.com

STOLT FLAT ON YEAR

Stolthaven Terminals has reported thirdquarter revenues of $62.9m and operating profit of $19.5m, with both figures and overall capacity utilisation virtually unchanged from the previous period. Both quarters included an exceptional gain, the third quarter’s reflecting the sale of the Altona terminal in Australia, which resulted in a book gain of $0.6m.

“We expect continued improvements in our results, driven by increased capacity and enhancements in operational performance and efficiency,” says Niels G Stolt-Nielsen, CEO of parent Stolt-Nielsen Ltd. www.stolt-nielsen.com

KM PLANS FOR EXPANSION

Kinder Morgan has reported third quarter net income of $506m, down from the $693m recorded for the same period last year, which included a one-off gain from the sale of its interest in the Trans Mountain pipeline. Absent that sale, EBITDA for the first three quarters of this year is essentially flat compared to 2018.

Earnings from terminal operations were slightly down on the third quarter 2018, with Kinder Morgan president Kim Dang saying: “Our liquids business, which accounts for nearly 80 per cent of the segment total, saw incremental contributions from expansion projects. However, this increase was offset by increased tank lease costs at the Edmonton South Terminal, paid pursuant to a lease agreement with Trans Mountain that became a third-party arrangement due to our sale of Trans Mountain, and a variety of smaller items.”

Current investment projects include a $125m plan to increase flow rates at the Pasadena terminal and nearby Jefferson Street truck rack, alongside tank modifications that will add butane blending and vapour combustion capabilities to ten storage tanks, expansion of the current methyl tert-butyl ether (MTBE) storage and blending platform, and a new dedicated natural gasoline (C5) inbound connection.

The improvements are supported by a long-term agreement with a major refiner and are expected to be completed by the end of the second quarter of 2020.

Elsewhere, Kinder Morgan is investing $45m to develop and construct a butane-ondemand blending system at the Galena Park terminal, due for completion in late 2020. This project will include construction of a new 30,000-bbl (4,770-m³) spherical tank for butane storage and adaptation of 25 tanks to allow butane blending. Another C$50m is going into expand distillate storage capacity at the Vancouver Wharves terminal in British Columbia; this involves construction of two new storage tanks with a combined capacity of 200,000 bbl (31,800 m3) and enhancements to rail tank car unloading capabilities. The project is underpinned by a 20-year take-orpay contract with an energy major and is due onstream around March 2021. www.kindermorgan.com

COMING TOGETHER IN CUSHING

Holly Energy Partners (HEP) and Plains All American Pipeline have formed a 50/50 joint venture, Cushing Connect Pipeline & Terminal LLC, to develop a common carrier pipeline to link the Cushing crude oil hub in Oklahoma (right) with HollyFrontier’s (HFC) refining complex in Tulsa, as well as a 1.5m-bbl crude oil storage terminal in Cushing.

The terminal is expected to be in service in second quarter 2020 and will be managed by an affiliate of Plains All American. The two parties will share the investment cost, expected to be around $130m.

“The new joint Venture will provide growth to HEP by insourcing logistics spend and provide the capability to supply 100 per cent of HFC’s Tulsa refinery crude throughput,” says George Damiris, CEO of HEP’s general partner. “Our partnership with Plains generates HEP growth while providing HFC long-term control of a strategic asset.”

“This win-win joint venture aligns with our strategy of optimising existing assets to provide value chain solutions for long-term industry partners in a capital efficient manner,” adds Jeremy Goebel, executive vice-president, commercial at Plains All American. “This investment expands our relationship with a key operational hub service customer and provides additional long-term alignment on movements to the Tulsa refinery.” www.hollyenergy.com www.plainsallemerican.com

PUMA OUT OF PARAGUAY

Puma Energy has sold its operations in Paraguay to Impala Terminals Group, a joint venture between Trafigura and IFM Global Infrastructure Fund, for some $200m. Puma’s assets in Paraguay include two terminals with a combined capacity of 72,300 m3, one located close to the border at Encarnación and a new facility close to the capital Asunción, as well as a network of service stations.

The deal is expected to close in first quarter 2020, with proceeds to be used to pay down debt. The business will continue to operate under the Puma Energy brand. www.pumaenergy.com

NEW HEAD FOR HES

HES International has appointed Daan Vos as its CEO as from 1 October. Vos has more than 20 years’ experience in the terminals sector and has served as group managing director of Oiltanking for the past four years.

Vos is expected to “bring strong leadership skills, significant expertise and deep customer relationships which he has built over a long and successful career,” say John Bruen and Philippe Camu, members of the Supervisory Board of HES International.

The Supervisory Board has also been boosted by the arrival on 1 October of Steven Lak, who has replaced JP Peterson. Lak has held executive positions at the Port of Rotterdam and at HES International subsidiary EMO, which runs the largest dry bulk terminal in Europe. www.hesinternational.eu