Oiltanking’s new focus

READY TO ROLL

STRATEGY • OILTANKING IS PREPARING ITSELF FOR THE ENERGY TRANSITION, SIMPLIFYING ITS STRUCTURE AND PUTTING IN PLACE A NEW MANAGEMENT TEAM

THE GLOBAL ENERGY markets are experiencing a period of structural change due to a slowdown in global GDP growth, decreasing energy intensity and the energy transition. Operators of bulk liquids terminals all around the world are having to face up to that structural change and determine how best to face the future.

One such operator, Oiltanking, has recently announced a new strategy to respond to changing market conditions. It includes internal restructuring and a focus on asset optimisation, which may result in further changes in its terminal network following the recent sale of its Tallinn terminal in Estonia to a local fuel distributor.

INDUSTRIAL TRANSFORMATION IN THE OIL AND

PETROCHEMICAL INDUSTRIES IS FORCING TERMINAL

The ‘Oiltanking strategy 2025’ has three main legs: • Maximising the value of current assets, including cost optimisation and “reshaping the portfolio” • Achieving profitable growth by prioritising projects with a focus on gas and chemicals, while also enhancing customer-centricity, and • Providing the necessary enablers in terms of safety performance and driving sustainability.

“I am convinced that our strategy 2025 will pave the way to a sustainable future,” says Matti Lievonen, who took over as CEO of Oiltanking in April 2019. “In line with our strategic directions, we will focus on operational excellence, safety performance, project execution, and sustainability. I look forward to working with the new Oiltanking Management Team as well as with the entire organisation to make our new strategy a success.” WORK OUT THE DETAILS To be able to deliver on the strategy, one key objective is to consolidate the regional structure in order to simplify and streamline the organisation. Instead of the current eight regions there will be three, more balanced, regions in future: Americas, EMEA (Europe, Middle East, Africa) and APAC (Asia Pacific including China and India). Furthermore, there will be four central functions: Finance (CFO), Portfolio & Strategy, Assets & Operations (A&O including HSSE) and Human Resources (HR). The heads of the new regions as well as the heads of the central functions will report directly to the CEO.

The new management team, as from 1 October, comprises Lievonen (CEO), Holger Donath (senior vice-president Americas), Douglas van der Wiel (senior vice-president EMEA), Claas Pinkenburg (senior vicepresident portfolio and strategy), Yvan Tavernier (senior vice-president A&O) and René Anghel (CFO). Oiltanking is currently looking to appoint senior vice-presidents for the APAC region and for HR; van der Wiel will take interim charge of the APAC region.

The new management team will collectively work out detailed strategic directions and related initiatives. Oiltanking plans to have the process completed by January 2020 at the latest and to then start full implementation.

One project that perhaps indicates the direction that Oiltanking will be taking is its participation in the German LNG Terminal GmbH, alongside Gasunie and Vopak, which plans to construct an LNG import and distribution terminal in Brunsbüttel in northern Germany. The project has won interest from prospective customers and has the support of local and federal authorities in Germany. Pre-qualification EPC bids are due to be received by this month, with a selection due to be made early in 2020.

Oiltanking, a privately held subsidiary of trader Marquard & Bahls, currently owns and operates more than 70 bulk liquids terminals around the world with a combined storage capacity of some 20m m³. HCB www.oiltanking.com