News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

KOOLE TO BUY ALKION

Koole Terminals is to acquire Alkion Terminals after a binding agreement was signed by the two terminal operators and Alkion’s backers, Coloured Finches and InfraVia. The deal will create a European network of 20 terminal facilities with a focus on chemicals and biofuels, contributing to Alkion’s vision of a more consolidated terminal industry in Europe.

“This is a significant milestone in the journey of Alkion and is welcome news for everyone in the Alkion leadership team,” says Rutger van Thiel, CEO of Alkion and partner at Coloured Finches. “Alkion will be joining a European leader in our industry, which will ensure continuity of service to our customers in our nine terminals and an exciting work environment for our teams. Under Koole ownership Alkion will continue investing significantly in our locations in particular towards providing flexible storage solutions for our industrial clients and the energy transition and maintaining a high performing asset base from a health and safety perspective.”

John Kraakman, CEO of Koole, adds: “This transaction will expand Koole’s position in storing chemicals and biofuels products by gaining the experience of a European leader in these market segments. It is also in line with Koole’s strategy of diversification in providing supply chain integrated solutions to its customers to facilitate the transition to a low carbon future. Furthermore the acquisition will continue the company’s international expansion and further cements its role as a leading European liquid bulk storage platform.”

Alkion has nine bulk liquids storage terminals located in France, Italy, Spain, Portugal and the Netherlands, with a combined storage capacity of some 1.2m m3 and plans for significant organic growth. Koole Terminals has 11 sites in Europe with total capacity of some 4.1m m3, also offering processing, logistics and other services.

The transaction is subject to customary approvals; it is expected to close by the end of this year. koole.com www.alkion.com

MORE DIESEL FROM COOGEE

Coogee has started work on the construction of 120,000 m3 of diesel storage at its Kwinana terminal in Western Australia, doubling capacity at the site. The work is part of the federal government’s Boosting Australia’s Fuel Storage programme designed to improve long-term fuel security. The new tankage is due in service in June 2023.

“The investment in our new diesel storage adds to our existing strategically located fuel terminals business and makes us the largest independent fuel terminal storage and services provider in WA,” says Dr Grant Lukey, Coogee CEO. “Our existing facilities along with these new tanks offers the fuel majors optionality and access to a very efficient open access commingled fuel storage facility.” www.coogee.com.au

ADVARIO INVESTS IN MEXICO

Advario and Braskem Idesa have signed an agreement to build and operate a 50/50 ethane import terminal at Coatzacoalcos, Mexico. Construction of the $400m Puerto Mexico Chemical Terminal (TQPM) began in July, with completion scheduled for late 2024. The greenfield site will be connected by an 11-km pipeline to Braskem Idesa’s nearby petrochemical plant but will also offer cryogenic ethane to other industrial users in the region.

“This partnership allows Braskem Idesa to work with one of the most distinguished companies in the sector, adding technology, experience, and recognised safety excellence to TQPM’s operations. We are delighted with the announcement of this joint venture,“ says Stefan Lepecki, CEO of Braskem Idesa.

“The development of the Puerto Mexico Chemical Terminal is another important example of Advario’s commitment to partnering with leaders in the industry and focusing on growth opportunities within chemicals, gases, and new energies,” says Bas Verkooijen, CEO of Advario. “We look forward to a long and

successful collaboration and to bringing our depth of expertise to this exciting project.” advario.com

STOLT FINALISES TAIWAN JV

Stolhaven Terminals and Revivegen Environmental Technology have signed a joint-venture partnership confirming their plans to build a new greenfield terminal in Kaohsiung, Taiwan, having signed a letter of intent in September 2021. The two companies have completed a comprehensive feasibility study and are now working towards a final investment decision, expected over the summer.

The partnership positions Stolthaven Terminals to respond to growing customer demand for high-quality bulk liquid storage in the region, says president Guy Bessant: “A terminal in Taiwan would be complementary to our existing global network and increase the reach of the supply chain solutions that we are able to offer our customers. It will focus on the safe and efficient handling and storage of chemicals and industrial gases for local and multinational companies, including those with manufacturing operations in Taiwan.” www.stolt-nielsen.com

AMMONIA GO-AHEAD IN ROTTERDAM

OCI is to move ahead with a significant expansion of its ammonia import terminal in Rotterdam that will triple throughput capacity to 1.2m tonnes per year by 2023. The decision to go ahead with the work follows what OCI says is a “significant increase in ammonia imports” over the past year to compensate for lower European production as a result of volatile and high gas prices. The expansion of what is Rotterdam’s only ammonia import facility will also help meet emerging large-scale demand for ammonia for use as a low-carbon fuel, particularly in the maritime sector. OCI has also mapped out a further expansion that could increase capacity to more than 3.0m tonnes per year and is planning to begin permitting activities this year.

“As a global leader in ammonia production, trading and distribution, this project is a very logical step to leverage our incumbency status in Rotterdam to enhance our ammonia value chain: never has this been as vital as it is now,” says Ahmed El-Hoshy, CEO of OCI. “We are pleased to announce this milestone, enhancing a key ammonia import and future bunkering hub and aggregation point for low-carbon ammonia at a world-scale port, which will serve as an important avenue for clean ammonia imports from our global facilities and addresses current and future European hydrogen deficit needs.”

“OCI’s decision to invest in tripling its ammonia import capacity in Rotterdam perfectly fits our plans,” adds Allard Castelein, CEO of the Port of Rotterdam. “Our ambition is to be a carbon-neutral port in 2050. This regards not only the industry in the port area, but also shipping. Ammonia is not only a hydrogen carrier and a feedstock for the chemical industry, it’s also an important renewable fuel for the shipping sector. To be able to bunker ammonia, steps such as OCI’s need to be implemented to increase the base. As sailing on ammonia is something new, we’re working hard together with the business community and public authorities to have the regulations and safe handling procedures for ammonia bunkering operations in place in time.” www.oci.nl

MAGELLAN SHIFTS FOCUS

Magellan Midstream Partners has closed the sale of its independent terminals to Buckeye Partners for $435m. The 26 refined products terminals in the south-east US offer some 6m bbl of storage capacity but are not connected to Magellan’s broader pipeline and terminal network. Magellan says it will use the proceeds in line with its capital allocation priorities, which may include equity repurchases.

“These terminals are highly complementary to Buckeye’s existing terminal business and enable us to further strengthen our offering to our valued customers in the southeastern US and nationally,” says Todd Russo, Buckeye’s CEO. “The team is excited to integrate these assets into our diversified global terminal network, and we welcome our new team members as we begin what will be a seamless transition for all customers.”

Magellan has meanwhile reported second quarter net income of $354m, up from $280m

last year, with this year’s figure boosted by a gain on the sale of discontinued operations. Overall, revenues were somewhat down, with refined products showing a $21m year-on-year decline in operating margin; despite higher rates and increase throughput, Magellan faced higher costs in areas such as property taxes (after recent expansion projects) and power, as well as less favourable product overages.

Magellan has not shifted on its full-year forecast, noting that the recent decline in commodity prices as well as the potential for slightly higher expenses during the second half of the year “are currently projected to mostly offset our modest financial outperformance year to date”. magellanlp.com

NUSTAR STAYS SOLID

NuStar Energy has reported what it calls “solid” results for the second quarter of 2022, although it saw a decline in both net income and EBITDA following the disposal of its terminals in the eastern US in October 2021. Net income dropped from $63m in second quarter 2021 to $59m, with EBITDA falling from $189m to $175m.

“On an ‘apples-to-apples’ basis, excluding the contribution of the Eastern US terminals we sold in October, and the Point Tupper terminal we sold in April, our second quarter 2022 EBITDA was comparable to the second quarter of 2021 despite customer transitions and related tank maintenance at our St James terminal, and the timing of minimum volume commitment settlements at our Corpus Christi North Beach terminal,” says NuStar president/ CEO Brad Barron. Those disposals have also allowed NuStar to reduce its indebtedness and improve its debt-to-EBITDA ratio. www.nustarenergy.com

HELLO OCEAN POINT

Limetree Bay Terminals, which operates a standalone bulk liquids terminal at St Croix in the US Virgin Islands (USVI), has been renamed Ocean Point Terminals. The change, the company says, reflects its vision of ‘Local Excellence and Global Connectivity’.

“It was really important for us to choose a brand that speaks to the operational excellence of our local employees, their dedication to safety, and the ongoing stewardship our company provides,” says CEO Todd Dillabough. “The name Ocean Point Terminals connects the business to both the USVI community and the world.” The change of name has also occasioned a new website, which can be found at www.opterminals.com.

ODFJELL ON TRACK

Odfjell Terminals Asia has completed the sale of its 49 per cent holding in Odfjell Terminals (Tianjin), alongside Lindsay Goldberg’s share. This marks Lindsay Goldberg’s final exit from its investment in Odfjell Terminals. Odfjell says the sale will have a very limited impact on its balance sheet.

Odfjell’s share of its terminal activities generated EBITDA of $8.5m in the second quarter of 2022, with a first-half figure of $17.9m being 21.8 per cent higher than for the first half of 2021. Odfjell Terminals booked a net profit of $1.0m for the second quarter, with the first half’s figure of $2.8m comparing favourably with last year’s $0.2m.

Odfjell says its terminals in the US and Europe continued to operate well with average commercial occupancy close to 100 per cent and high levels of activity. “We ancitipate the strong storage demand in the US and Europe to continue throughout the year,” it says. There was some reduction in average occupancy rates at the Ulsan terminal in South Korea but activity levels remained healthy.

This past June, Noord Natie Odfjell Antwerp Terminal opened its new tankpit T, adding 35,000 m3 of new stainless steel tankage, which is fully rented out. Work has now started on tankpit U, which will add another 36,000 m3 of carbon steel tankage. Work on Bay 13 at Odfjell Terminals Houston continues on schedule and is due to add 32,000 m3 of carbon and stainless steel tankage by the end of 2023. www.odfjell.com