News bulletin – storage terminals

NEWS BULLETIN

STORAGE TERMINALS

OT SHIFTS FROM EUROPE TO ASIA

Oiltanking says it is “an advanced stage” in its strategic review of its European terminals and, alongside its partner 3i Infrastructure, has entered into an agreement to sell four of them to Evos. The divestment of the Amsterdam, Terneuzen, Ghent and Malta terminals is a result of Oiltanking’s continuous evaluation of and optimisation of its asset portfolio, in line with its Strategy 2025 plan.

A final agreement on the sale is subject to employee consultation procedures in the Netherlands and Belgium, along with other customary conditions. Further announcements will be made in due course.

In China, meanwhile, Oiltanking has signed a strategic alliance framework with local authorities in Huizhou covering the development of a world-class logistics and warehousing operation in the Daya Bay Petrochemical Industrial Park. The move follows the relocation of seven tanks within the park by Oiltanking, to optimise utilisation of the available land. The tanks offer 33,000 m3 of storage capacity for petrochemicals.

“This agreement provides an excellent opportunity to further grow the partnership with the Daya Bay government and support the advancement of the Daya Bay Industrial Park,” says Matti Lievonen, CEO of Oiltanking. “Furthermore, it lays the foundation for further expansion of Oiltanking in Daya Bay Industrial Park, hence strengthening Oiltanking’s presence in China.”

And in Indonesia, Oiltanking Karimun and Matrix Global Holdings are to develop an auction programme for storage capacity at Oiltanking’s terminal on Karimun Island. Depending on the outcome of a feasibility study and traction from the market, the two companies aim to hold the first auction for fuel oil storage capacity before the end of this year. Oiltanking has already successfully used Matrix’s auction platform for jet fuel and ultra-low sulphur diesel storage at its Copenhagen terminal.

“By developing a digital auction platform for Oiltanking Karimun and partnering with Matrix, Oiltanking has achieved another important milestone in its digitalisation and innovation roadmap, thereby supporting Oiltanking’s vision of being the preferred partner in energy logistics,” says Andy Loh, head of commercial at Oiltanking Asia Pacific. “We will continue to develop innovative ways, together with partners, that will allow us to even better serve our valued customers around the world.” www.oiltanking.com

ENTERPRISE ADDS ETHYLENE

Enterprise Products Partners has acquired a wholly owned subsidiary of NOVA Chemicals, which operates an ethylene storage operation and trading hub in Mont Belvieu, Texas. NOVA Chemicals, one of the largest merchant ethylene producers and marketers in the US Gulf Coast region, will remain a long-term customer for the facility.

“The acquisition, which gives Enterprise ownership of the largest ethylene market hub in Texas since it was established in 2001, will complement Enterprise’s own growing ethylene network in the region,” says Chris D’Anna, senior vice-president, petrochemicals at Enterprise’s general partner. “The combined system offers multiple benefits for producers, consumers and traders, such as increased physical connectivity, greater market liquidity and pricing transparency, as well as improved access to Enterprise’s ethylene midstream services, including our export terminal and growing Gulf Coast pipeline system.” enterpriseproducts.com

GREEN CASH FOR ALKION

Alkion Terminals has completed a sustainabilitylinked refinancing of its debt facilities, replacing the €255m raised in 2019 with terms loans amounting to €370m, including €100m for capex and acquisitions. “The improved pricing of the new debt structure is linked to three specific sustainability targets whose compliance will be monitored by an independent specialised audit firm,” the company notes.

The €100m capex facility is planned to support the 2022-2025 growth programme at Alkion’s terminals, responding to growing demand for petrochemical and biofuels storage with increases in capacity and investments in automation.

“At Alkion we view sustainability as the base of economic resilience and an opportunity for growth,” says CEO Rutger van Thiel. “We take particular pride in the framework we have adopted, which sets measurable sustainability targets and links our financial performance to achieving those targets.” www.alkion.com

NUSTAR BACK TO NORMAL

NuStar Energy has reported second quarter net income of $63m, compared to $30m a year ago, with EBITDA up 17 per cent at $189m. “Strong improvement in our EBITDA was driven by outperformance across our core strategic asset footprint: our refined products systems, our crude assets and our West Coast Renewable Fuels Network,” says NuStar president/CEO Brad Barron.

“Refined product demand has continued to improve as more and more Americans have returned to normal day-to-day activities,” Barron adds. “After dipping to an average of 95 per cent in the first quarter due to Winter Storm Uri, our second quarter average rebounded back up to 105 per cent of pre-pandemic demand, and we are now forecasting 100 per cent for the full year.”

NuStar has also agreed to sell eight storage terminals to Sunoco for $250m. Seven are in the north-east US and one in Florida. “While these terminals are solid assets with great operations and employees, these facilities are no longer synergistic with NuStar’s core assets, which, in the current competitive climate is critical to their long-term success,” says Barron. www.nustarenergy.com

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