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1 SPRING EDITION 2018
D
ear Reader
This first edition of 2018 sees Tank News International enter its third year of business and the timing couldn’t be better – we have recently seen oil prices reach $70 a barrel for the first time in three years so the growth Tank News International is experiencing appears to be mirroring the industry within which it works. In recent weeks we have also been extremely proud to announce that our online readership topped 10,000 in a month for the first time and the
distribution of the printed publication this year is set to grow even further with the number of events we partner with expanding. We have signed media partnerships with LogiChem, Global Petroleum Show, Gas Indonesia Summit & Exhibition and the International Pipeline expo to name just a few. These go alongside events we have been working with since we launched. When it comes to news and interviews, we are proud to feature pieces from Odfjell’s Rotterdam Terminal’s Managing Director, Erik Kleine and CST CEO, Tim Carpenter. These sit alongside our regular columns from S&P Global Platts and Reynold’s Training Services. Our Market Focus feature in this edition comes from Argus Consulting Services’ Senior Manager, Kristen Mueller. Our New Products & Technologies pages feature pieces from EnviroGear Pumps, Flotech Performance Systems, Richter ChemieTechnik GmbH, Mouvex and FNC. News in this edition includes: In the Storage Terminal industry we cover news of Caltex
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Australia Limited strategic partnership with SEAOIL Philippines Inc., Andeavor’s acquisition of Rangeland Energy and ATLHA Terminals’ liquid bulk storage terminal development in Germany. In the Tank Container section, we feature a piece about the HOYER Group and H&H Foodlog’s joint venture alongside a page on industry research. In Road Tankers we cover Rubis acquisition of EG Retail. In Shipping we cover Crowley Maritime Corporation’s restructure. In Ports we look at Royal Boskalis Westminster, Van Hattum en Blankevoort and TBI subsidiary Mobilis award from the Port of Rotterdam Authority to build quay walls and a jetty and in Rail we look into Canada National Railway’s pilot project to transport bitumen by rail in its solid form. All this and much more sits alongside our regular features on Roles & Responsibilities, Event Previews & Reviews and Company Profiles. We hope you enjoy the Spring edition of Tank News International.
ouse h t r o h S Jo Editor
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11 SPRING EDITION 2018
Contents MARKET FOCUS
S TO R AG E T E R M I N A L S
TA N K CO N TA I N E R S
15 & 17 Evaluating the need for growth…
22 ADNOC investing… 24 CB&I awarded… / $4bn oil refinery… 26 Corpus Christi… / SemGroup to sell 29 Krk LNG Terminal… / Trafigura to develop… 31 Reganosa launches… 33 Caltex Australia… 37 RTS column… 38 CLH Pipeline… 39 New LNG terminal… / New refinery… 40 & 41 S&P Global Platts column… 42 AB Klaipedos Nafta… 43 Flotech PS delivers… 44 Manga LNG terminal… 46 HES International growth… 49 BP and Copersucar… 51 Total completes upgrade… 52 Skangas first… / Fluor lands… 53 Kenya Pipeline Company… 55 Complete solution… 57 National Grid… 59 Viva Energy’s largest… 61, 62 & 63 Odfjell Terminal Rotterdam… 64 Zenith Energy acquires… 67 Jinja Terminal… / A First for Vopak… 69, 71, 72, 74 & 77 CST Celebrates… 79 Shell Midstream Partners… 81 Completion of Glencore… / EVX Midstream Partners… 83 JGP Energy Partners… 85 Zenith Energy U.S…. / Andeavor to acquire… 87 Enterprise and Navigator… 89 ExxonMobil to merge… 91 New President for… 92 Magellan Midstream… 94 & 95 Oil & Gas storage service industry… 95 Vital Inc. and Harvest… 96 Enbridge’s $3bn… 98 & 99 New York Terminals… 100 Texas International… / CRV Refining… 102 Contanda plans… 105 American Midstream… 107 Enterprise Products… / LBC Tank Terminals… 108 Kinder Morgan completes…
111 Kerry Logistics scoops… 112 ITCO and @TCO… 114 Bertschi Group expands… 115 Stolt-Nielsen 2017… 117 HOYER and H&S… 119 TALKE implements… / Brenntag forms… 120 LHN expands… / LTH Logistics… 122 Eurotainer selects… / New tank containers… 123 Brenntag celebrates… 124 New KNT Tank… / LNG Tank Container… / Military tank… 127 Leschaco strengthening… / GKE invests in new… 129 Trifleet combines… 130 Odyssey expands…
N E W T E C H N O LO G Y
19 & 21 Envirogear / Flotech / Richter / Mouvex / FNC
SHIPPING
155 Grain LNG… / Odfjell… 156 Thome opens… 147 Wärtsilä & GTT… 158 Peninsula Petroleum… / Euronav rollout… 159 OSM wins crew… 160 Skangas and Titan LNG… 161 Shell and Anthony… / MOL and COSCO… 162 ABS awarded… 163 Crowley transports… / Philly Shipward… 164 INEOS to deliver…
PORTS
166 Port of Rotterdam… / Mega Port planned… 167 AG&P to develop… 168 British Ports… / Singapore and Shell… 169 Port of Antwerp… 170 First fuel flows… 171 Boskalis awarded… 172 New LNG terminal… / A first for… 173 Gothenburg bunkering… 174 Corpus Christi celebrates… / Jaxport LNG
CO M PA N Y P R O F I L E S
194 DNV GL / Tank Welding LLC 195 Elsont TankService GMBH / Pelican Worldwide
ROLES AND RESPONSIBILITIES
187 & 188 Roles and Responsibilities
EVENT REVIEW
189 Tank Storage Germany… EVENT PREVIEWS
TA L E S F R O M A T R A D E S H O W
35 NISTM
190 NISTM 191 Uniti 192 StocExpo 193 Argus Mediterranean
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R OA D TA N K E R S
132 Abbey Logistics chooses… 134 Suttons given… 135 Wabco acquires…/ Nijhof-Wassink collaborates… 136 SAP S/4HANA… 137 Puma Energy… 138 Praxair 139 TCL Tankers… 140 Road tanker research… 141 Brenntag acquires… / Rubis acquires… 142 Den Hartogh… / Rogers Petroleum… 144,145 & 146 Road Tanker Static… 147 Dover Fuelling Solutions… 148 Dupré growth… / American Petrolog… 149 Andrews Logistics… 150 ATA Honours… / Quarles Petroleum…
RAIL
176 SAVVY Telematic… 177 Canada’s Largest… 178 RM Raul… / Savage expands… 179 United Wagon Company… / Service desk… 180 DB Cargo’s rail… 181 Bitumen pilot project… 182 Norfolk Southern… 184 BNSF names… / API welcomes… / Short Line Safety… 185 Shale Support… 186 Biarri Rail… / BNSF plans…
Flying the flag 5 strategically located countries in Northern Europe 16 terminals 4.3 million cubic metres of storage 85+ years of experience 1st choice in bulk liquid and gas storage Inter Terminals Ltd +44 (0)1737 778108 Info@InterTerminals.com | www.InterTerminals.com Inter Terminals is owned by Inter Pipeline Ltd. www.interpipeline.com
13 SPRING EDITION 2018
Greg Emmenis
The front cover is proudly sponsored by Blastco (www.tfwarren.com)
Publisher | Head of Sales +44 (0) 7877 003195 greg@tanknewsinternational.com
Jo Shorthouse Editorial Director jo@tanknewsinternational.com
Emma Ardley-Batt
TankNewsInternational.com shares news covering the entire tank storage and transport markets and welcomes editorial submissions covering new product launches and enhancements, case studies, regulation changes, technical articles and company news. We also want to hear about your events and exhibitions and welcome the submission of company, case study and product videos which we will add to our fast growing YouTube Tank News International channel which links to our website. As well as sharing the latest industry news we aim to assist you in your search engine optimisation (SEO) activities by sharing your news and using our range of social media channels: Facebook, LinkedIn and Twitter to promote that news and grow your online following. Tank News International is run and published by Industry Vision Media Group.
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15 SPRING EDITION 2018
MARKET FOCUS
Evaluating the need for
GROWTH IN THE STORAGE TERMINAL INDUSTY
Every day seems to bring the announcement of another storage facility being upgraded or expanded. Many of these terminals are in well-established locations, but as sources of supply and demand develop, new trade routes open up and additional assets or changes to existing facilities are required.
N
umerous developing markets for refined products are still served only by overland supply routes. These routes can often be slow, expensive and prone to disruption. This is particularly problematic in regions where road and rail infrastructure is inadequately developed. Building new import terminals can increase buying options, reduce costs and improve security of supply. Argus Consulting Services has worked with a number of clients across a variety of product types and regions to evaluate the opportunities for terminal operators seeking to enter new markets. The key questions these clients need answered are around market
Here Argus Consulting Services’ Senior Manager, Kristen Mueller discussed the need for these facilities and how developers move forward when creating a new terminal.
Tema and Takoradi. This supply chain fundamentals, regional trade patterns is costly and frequently disrupted. The and price. More specifically, clients need terminal operator is considering building to ask: What size should I build and for an LPG terminal with 20,000 cubic metres which products? How should I market this of storage at Cape Coast, between the terminal? What type of facilities should two main ports. The client needs to ask the terminal offer to be competitive? To a number of questions. Will there be illustrate some of the questions that a need for this terminal in five or terminal investors should ask, we 10 years or even beyond this will use a hypothetical example timeframe? What are the likely from a market that has been CREATING sources of product? At what generating a high amount of cost will terminal customers be interest. TERMINALS able to bring product in? Is the The example is a proposed facility the right size? proposed LPG terminal in To understand if there is Ghana. The country currently a need for an import terminal, the offers minimal storage capacity client must understand the supply and and is reliant on overland supplies from neighbouring countries or the ports in Continued on page 17 TA NK NE WSI NTE R N ATION A L .C OM
Continued on page 18 TA NK NE WSI NTE R N ATION A L .C OM
17 SPRING EDITION 2018
Continued from page 15
demand picture for the particular consumption increases, the terminal product and how it may develop. For operator can feel confident that the need a terminal operator evaluating an LPG for an import terminal is supported by facility, changes to the local refining market fundamentals. and gas processing sectors must be The proposed terminal must be monitored as these impact product suitable for how the market functions availability. Even changes to the crude or, in the case of a new asset, for how it slate or the production profiles of fields is likely to function based on regional can impact the availability of supply. trade patterns. As the proposed terminal Supply for the Ghanaian market is is being built in a location without assets, forecast to remain stable following a there is no shipping history to look at to substantial production increase with the determine the size of ships that should commissioning of the Atuabo gas be used. The operator would need processing plant. to look at how product is traded Similarly, it is critical in the region more broadly to profile demand - both in to start to answer questions SUITABLE terms of absolute volume and about practicalities such FOR THE how this might evolve in the as tank or jetty size. For MARKET future. In some sectors that example, in western African use LPG, fuel switching is much markets, you might assume more common. For example, that small ships are used as demand for feedstocks from the the markets generally have limited petrochemical sector can vary depending storage and port facilities. But shipping on relative prices. In Ghana, demand data indicate that mid-sized (25,000is broad-based and forecast to grow, 40,000m3) ships are often used and will make multiple stops to discharge. underpinned by the development of the These sometimes even revisit the same world’s largest LPG-fired power plant discharge port more than once between and government support for increased loading ports. So a terminal should be usage in the residential sector. Given the capable of handling the ships most market’s current reliance on imports, frequently used and storage size should stable production picture and forecast TA NK NE WSI NTE R N ATION A L .C OM
MARKET FOCUS
be based on observed trade patterns - in this case, partial offloading. Consideration should also be given as to how the fleet is evolving, as the market seems to favour ever-larger ship sizes. Combining insight on the supply picture with ship tracking also provides a view on the supply sources that are likely to provide product for the proposed terminal. This will be important for the final piece of the analysis - what will be the cost of product at the terminal. There are two key aspects to this question. First, what pricing currently prevails in the market? In many markets, this can be a complicated question with buyers using different benchmarks or baskets of them. Second, using the information gained about regional shipping patterns, the operator can assess what would be the likely sources of supply for the proposed terminal. From this, the likely cost of product at the terminal can be calculated, based on the price at the supply source, freight and logistics. In the example used here, sources of potential supply could include the US, Angola, Algeria, and Nigeria. Analysis would need to be undertaken to understand what pricing benchmarks are used in these markets as well as the cost of freight to ship product from these countries to the proposed terminal. Assuming that the new supply routes opened up by the terminal offer lower cost LPG than what is currently available in the market, then it is likely that customers will want to use it. Understanding market fundamentals, regional trade patterns and product pricing are all critical for a terminal operator building an investment case for any terminal development. Argus Consulting Service has worked with a wide range of these clients to help them to analyse and assess the opportunities offered by a rapidly changing market. For more information visit www.argusmedia.com
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19 SPRING EDITION 2018
N E W T E C H N O LO G Y
NEW PRODUCTS &
technologies
The development of new products and technologies, along with the work of industry innovators, is what enables the tank storage and logistics industries to grow and thrive.
In this edition of Tank News International we highlight five new products that have been designed to increase the productivity of their users. If you would like to submit a product to be featured, please email editor@tanknewsinternational.com
EnviroGear EnviroGear Pumps, part of PSG, a Dover company has extended its line of E Series internal gear pumps with the availability of
4” (100mm) and 6” (150mm) sizes offering flows up to 500gpm (1,893L/min). Suitable for the most challenging and demanding transfer applications, these new E Series pumps are available in cast iron, carbon steel and stainless steel materials. EnviroGear E Series pumps feature a revolutionary seal-less design with a patented between-the-bearing support system that effectively eliminates leaks and reduces mechanical wear, helping increase the safety of site personnel and the environment. This design also eliminates the damaging effects of cantilevered loads that are present in competitor internal gear pumps, maximising rotor, idler and bushing life. For more information visit www.envirogearpump.com
Flotech FLOBLOCK
Flotech Flotech Performance Systems has drawn on three decades of experience in additive injection systems to develop its additive injection manifold to date – the FLOBLOCK. The FLOBLOCK combines check valve, needle valve, flowmeter, solenoid valve and filter in a single manifold which measures under 23cm in length. It Integrates with: all mainstream load computers, additive controllers, PLC’s and terminal automation systems. Its applications include: marker dyes, DNA markers, performance additives, stenching & denaturing agents. For more information visit www.flotechps.com
EnviroGear E Series pump
Continued on page 21 TA NK NE WSI NTE R N ATION A L .C OM
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21 SPRING EDITION 2018
N E W T E C H N O LO G Y
Continued from page 19
steel (1.4408) eliminating the need to paint or coat the body to prevent corrosion. Stainless steel valves allows for fast, easy and thorough cleaning.
Richter
United Electric Controls Vanguard Gas Detector
For more information visit www.richter-ct.com
Mouvex
Richter Richter Chemie-Technik GmbH, a global leader in PFA lined pump and valve solutions, is expanding its ball-anddiaphragm valves with stainless steel bodies. Typical painted cast iron valves will release paint chips which can enter the piping system with periodic maintenance procedures. Potential paint residues can be avoided by using high grade stainless
Mouvex has launched a new CC10-24 vane truck pump which has been developed as a vehicle-mounted solution for loading and unloading petroleum products for trucks and transports. The CC10-24 includes all of the same features and benefits as the Mouvex CC8 pump while incorporating a variety of new enhancements. The new enhancements have been designed to make the pump smaller, lighter (70.6lbs/32kg), quieter (72dBA) and more environmentally friendly while increasing pump efficiency and reducing delivery times. Along with these advancements, the CC10-24 features an integrated by-pass designed
FNC
to protect against excessive pressures and overheating and is equipped with a 500-micron strainer. Mouvex CC10-24 pumps are also virtually maintenance free, reversible and have been engineered with double ball bearings for longer pump life. Additionally, these pumps are ATEX certified and available with a three-year warranty. For more information visit www.mouvex.com
FNC FNC has developed a new generation of flame arresters with a new and patented construction concept. The deflagration-proof end of line type has been tested and approved both in the stand-alone version and the valves integrated version. The deflagration-proof and detonation-proof inline versions are under testing with great improvements and a secure positive result. The benefits of the product are: an increased number of configurations, better flow performance, easy maintenance, less spare parts needed and product flexibility thanks to a modular system.
Mouvex
For more information visit www.fncitalia.it
If you would like your product or technology featured in Tank News International email our Marketing & Content Director, Emma Ardley-Batt – Emma@tanknewsinternational.com TA NK NE WSI NTE R N ATION A L .C OM
22 SPRING EDITION 2018
S TO R AG E T E R M I N A L S
ADNOC INVESTING $3.1BN IN RUWAIS Abu Dhabi National Oil Company (ADNOC) has announced a $3.1bn project to introduce crude processing flexibility at the Ruwais oil refinery. Known as the Crude Flexibility Project (CFP), the announcement is a significant step forward as ADNOC accelerates delivery of its downstream refining strategy that aims to enhance margins by introducing asset flexibility, backed by strong crude and product marketing initiatives. The announcement follows the awarding of the engineering, procurement and construction (EPC) contract, for the project, to a joint venture between Samsung Engineering and CB&I. The refinery modifications, scheduled to be completed by the
Refinery
end of 2022, will enable ADNOC’s Ruwais Refinery-West complex to process up to 420,000bpd of Upper Zakum crude, or similar crude types from the market, liberating Murban crude, which commands a higher price on global oil markets, to be utilised for export sales. Director of ADNOC’s Downstream Directorate, Abdulaziz Abdulla Alhajri said: “Enabling the Ruwais Refinery-West to process Upper Zakum, or similar, medium sour crude, in place of Murban light sweet crude, will allow us to extract greater value from our crude resources. It will mean we can maximise the benefit of price differentials to enhance refinery margins, improve the middle distillate products and release valuable Murban crude into the market.” The planned modifications will add an Atmospheric Residue De-Sulphurisation (ARDS) unit that will enable the refinery to process the Upper Zakum crude, or other similar crudes from the market. The ARDS
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technology is extensively used in upgrading medium to heavy petroleum oils and residues to more valuable clean environmentally friendly transportation fuels and to partially convert the residues to produce low-sulphur fuel oil and hydrotreated feedstocks. As part of the selection criteria for the EPC contract, ADNOC Refining carefully considered the extent to which bidders would help to drive In-Country Value (ICV) for the UAE. By integrating ICV criteria into the commercial evaluation process, ADNOC aims to maximise spend on local goods and services, to support socio-economic growth, improve knowledge transfer, and create job opportunities for UAE nationals. For more information visit www.adnoc.ae
INTEGRATED SYSTEMS While designing and manufacturing the highest accuracy meters in the industry, Brodie also provides complete solutions for metering applications such as... • • • • •
Truck loading/unloading systems Ship loading/unloading systems Rail car loading/unloading systems Pipeline metering systems Blending systems
Brodie’s scope of system integration includes • • • • •
Consulting Design Meter component manufacturing Fabrication of complete skid Testing, calibrating and providing Factory Acceptance Test (FAT) on Brodie’s premises • Commissioning on site TA NK NE WSI NTE R N ATION A L .C OM
Contact: T: +1 912 489 0200 E: sales@brodieintl.com www.brodieintl.com P.O. Box 450 (30459-0450) 19267 Highway 301 North Statesboro, GA 30461, USA
24 S TO R AG E T E R M I N A L S
SPRING EDITION 2018
contract
CB&I awarded for ADNOC Ref ining Crude Flexibility Project
C
B&I has been awarded engineering and procurement for two atmospheric residue a contract to desulphurisation units, which build a Crude were previously licensed by Flexibility Chevron Lummus Global, a Project (CFP) valued PROVEN at more than $500m joint venture between Chevron EXPERIENCE in Ruwais, UAE, by U.S.A. Inc. and CB&I. Abu Dhabi National Oil Additionally, CB&I’s scope of Company (ADNOC). work includes the engineering, CB&I is part of a joint procurement, fabrication and venture led by Samsung Engineering construction for 14 flat-bottom tanks Co., Ltd., that will execute the $3.1bn and ten process heaters. Approximately CFP, which will upgrade the Ruwais 40% of the value of the project is Refinery to process heavier offshore expected to be spent in the UAE supply crude oil from Upper Zakum fields. chain. CB&I’s President and Chief CB&I’s scope of work includes the Executive Officer, Patrick K. Mullen said:
“This award builds on CB&I’s proven experience in the refining industry. CB&I and Samsung have a history of successful collaboration and safe execution, and we look forward to working with ADNOC Refining to supply these units that will reduce sulfur, enhancing the ability of Ruwais petroleum products to compete on the world market while meeting stringent international environmental regulations.”
For more information visit www.CBI.com
$4BN OIL REFINERY PROJECT FOR GRAND BAHAMA
T
he government of the Bahamas has given approval to Oban Energies to commence construction of an oil refinery and oil storage facility in Grand Bahama. The project is expected to create 600 direct jobs, 1,000 indirect jobs during construction and have an estimated project cost of more than $4bn. Prime Minister, Dr. the Hon. Hubert Minnis said: “My Government has recently completed negotiating the Heads of Agreement which paves the way for the commencement of
this important project. This Heads of Agreement articulates how this development can proceed. “We are on the road to revitalizing both Grand Bahama and the entire Bahamas. “I am advised that Oban Energies Management team has been involved in large energy infrastructure projects around the world and brings over 30 years of large, complex construction experience. Oban Energies has further advised that the first phase of the project will consist of four million barrels of fuel storage, a harbour, and
TA NK NE WSI NTE R N ATION A L .C OM
deep-sea loading docks to service large vessels; and the construction of 50,000 barrels per day refinery. “In addition, Oban will build [an] up to 20 million barrel liquid bulk storage facility and a 250,000 barrel per day refinery. The oil refinery has an estimated project cost of up to US$4bn and the terminal has an estimated cost of US$1.5bn. This is a very significant development for Grand Bahama.” For more information visit www.obanenergies.com
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26 S TO R AG E T E R M I N A L S
SPRING EDITION 2018
CORPUS CHRISTI MARINE STORAGE TERMINAL GROUND BREAKING
A
ground-breaking ceremony has taken place for a new $128m oil storage and shipping facility at the Port of Corpus Christi. Junction Energy Capital and Castleton Commodities International have joined forced to create the Corpus Christi Marine Storage Terminal. Located on the Joe Fulton Corridor next to the M&G Chemicals plant the site is designed to load oil and
gas products piped in from the Permian Basin and Eagle Ford shale plays. Junction Energy’s Rob Johnson said: “The idea is to take barrels being produced in the Permian and Eagle Ford, ship them through the facility, load them on the vessels for the ultimate transport to other parts of the U.S. and the world.” The facility will create around 100 jobs during construction and 30 to 40 jobs once up and running in 2019.
The storage facility will be able to hold 4.5 million barrels of crude oil and process 100,000 barrels per day. Three shipping docks will be created. Phase one will see construction of six storage tanks, each with a capacity of 250,000 barrels, and one dock. For more information visit www.junctionenergy.com and www.cci.com
SemGroup to sell Mexican Asphalt Business to fund HFOTCO acquisition
T
he SemGroup Corporation has agreed to sell its asphalt business, SemMaterials México, to Ergon Asfaltos México HC, LLC, for $70m and will use the cash raised to funds the acquisition of Houston Fuel Oil Terminal Company (HFOTCO) and to pre-fund capital growth projects. SemGroup President and Chief Executive Officer, Carlin Conner said: “Divesting these non-core legacy assets is an important step as we raise capital and clearly define our portfolio of uniquely-advantaged midstream services on the Gulf Coast, Mid-Continent and in Canada. As we enter 2018, we remain focused on executing our strategic plan, enhancing our balance sheet
and paying the second HFOTCO payment.” SemMaterials México provides asphalt products, technology and pavement services to the Mexico paving market. The business includes 14 in-country terminals and two national laboratories. It is the largest supplier of liquid asphalt cement products and product application services in the country and has a presence in every Mexican territory. Carlin said: “I would like to thank the employees of SemMaterials for the many years they’ve committed to safety, sound operations and fiscal excellence. They’ve built an impressive business that should be an excellent addition to Ergon’s portfolio.” The SemMaterials México sale is expected to close early in the second quarter TA NK NE WSI NTE R N ATION A L .C OM
of 2018, subject to the receipt of certain governmental approvals and the satisfaction of other customary closing conditions. President of Ergon Asphalt & Emulsions, Inc, Baxter Burns said: “As Ergon has expanded our footprint from coast to coast in the U.S. over the past 36 years, we have been interested in moving into Mexico. The similarities between Ergon and SemMaterials México, from company culture and focus on employees, technology, quality products and safety, made this a perfect fit. We look forward to working with their existing management team and current staff to take Ergon Asfaltos México to the next level.” For more information visit www.semgroupcorp.com
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STORAGE T A N K EQUIPMENT
29 SPRING EDITION 2018
S TO R AG E T E R M I N A L S
KRK LNG TERMINAL RECEIVED FINANCIAL BOOST THE EUROPEAN UNION IS SET TO INVEST €101.4M IN THE CONSTRUCTION OF AN LNG TERMINAL IN KRK, CROATIA. COMMISSIONER FOR CLIMATE ACTION AND ENERGY, MIGUEL ARIAS CAÑETE AND ENERGY MINISTERS OF CROATIA AND HUNGARY, WITNESSED THE SIGNING OF AN AGREEMENT TO THAT END. THE GRANT WILL MEET PART OF THE PROJECT’S OVERALL COSTS OF €383.6M.
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he Commissioner said: “Today’s signature shows that the Energy Union is a reality on the ground: we are building missing energy links, uniting markets, and improving security of supply. This investment will not only allow for the supply of natural gas to Croatia and Hungary: it will also increase the diversification of energy sources of Central and South Eastern Europe, and
give an economic lift to the region. With commitments like these, the EU delivers true added value for its citizens.” As part of its Energy Union strategy, the EU is committed to building missing energy infrastructure links and ensuring that every EU country has access to at least three different sources of gas. The construction of the LNG terminal, which will first operate as an offshore floating storage and regasification unit with a yearly
capacity of at least 2 billion cubic metres, will increase the security of gas supply in Central and South Eastern Europe. It will also improve the competitiveness in the region and, as a priority project under the Central and South Eastern Europe Energy Connectivity (CESEC) initiative, provide for a more effective integration of key infrastructure projects. For more information visit www.lng.hr
TRAFIGURA TO DEVELOP SECOND LNG IMPORT TERMINAL PROJECT AT PORT QASIM Trafigura Group Pte Ltd has unveiled plans to develop a second LNG import terminal project at Port Qasim. The company will partner with PGPL in developing a new merchant FSRU project. The joint venture will sell gas to private sector end-users without direct government involvement. The project
will include a new jetty, berth and a second FSRU, benefiting from cost synergies with the existing facility. It offers the potential to turbo-charge import growth and rapidly scale up industrial use of LNG in the country. The company shared the plans at the inauguration of Pakistan GasPort Ltd’s (PGPL) new LNG floating storage and regasification import terminal at the port.
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The new terminal will more than double Pakistan’s current LNG regasification capacity, and be able to supply 90 million cubic feet of gas to private buyers in Pakistan each day. For more information visit www.trafigura.com
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31 SPRING EDITION 2018
S TO R AG E T E R M I N A L S
launches
REGANOSA ITS LNG HUB PROJECT IN THE IBERIAN PENINSULA Reganosa has launched its LNG hub project in the Northwest of the Iberian Peninsula. The energy company aims at providing liquefied natural gas as a marine fuel to a wide range of clients, sourcing the fuel from its first regasification terminal, located in the port of Ferrol in Galicia, Spain.
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ompany Chairman, José María Paz Goday said: “After ten years operating, Reganosa it has become a truly multinational enterprise within Galicia’s energy sector. Our projects include supporting the transition to gas as the fuel of choice among many sectors and, for that reason, we are trying to create a hub in the
northwest corner of Spain which serves the whole of Europe”. “I have been,” adds the managing director, Emilio Bruquetas, “with Reganosa since its inception. Today, we are an innovative, global company. We welcome challenges, especially those
LNG
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that help us effect change within our society. This is why we are directing all of our knowledge towards creating an LNG hub in Galicia. We are certain that it will serve as a major lever for guaranteeing sustainability within some of our most important sectors, such as fishing and the port network”. Reganosa is a Spanish energy company that works on the development, operation and maintenance of natural HUB gas infrastructures. For more information visit www.reganosa.com
33 SPRING EDITION 2018
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Caltex Australia partnership with SEAOIL includes 316 SEAOIL branded retail service Caltex Australia Limited 11 coastal fuel terminals and a EXXONMOBIL SUBSIDIARY, ESSO stations, EXPLORATION AND has formed a strategic wholly-owned coastal shipping logistics PRODUCTION GUYANA LIMITED (EEPGL), HAS AWARDED A business. partnership with SEAOIL CONTRACT TO SBM OFFSHORE FOR AWith FLOATING the supportPRODUCTION, of Caltex Philippines Inc., a Australia, one of the region’s largest STORAGE AND OFFLOADING (FPSO) VESSEL, A KEY STEP IN independent downstream fuel MOVING THE LIZA FIELD TOWARD FIRST PRODUCTION. leading independent companies, SEAOIL expects to accelerate fuel company in the the growth of its market reach and penetration, expand its product offerings Philippines and fourthand enhance its operating capabilities largest market participant. in the Philippines. In particular, SEAOIL Caltex Australia will acquire a 20% ownership interest in SEAOIL for A$115 m, and supply fuel to SEAOIL via its fuel sourcing and shipping business, Ampol Singapore. This transaction will support SEAOIL’s growth strategy, which aims to double the company’s retail network and terminal storage capacity over the next five years. The partnership the company’s targeted international expansion strategy, following the acquisition of Gull New Zealand in July 2017. As with Gull New Zealand, partnering with a customer led organisation such as SEAOIL offers Caltex Australia the ability to increase the scale and scope of its Singapore-based fuel sourcing and shipping operations. SEAOIL is an independent fuels marketing and distribution business in the Philippines. The company markets diesel, gasoline and lubricants to retail and wholesale customers nationwide. With annual volumes of approximately 1.5 billion litres, it has achieved sufficient scale to build its own national supply chain and compete effectively with the major legacy fuel companies. Its integrated infrastructure and logistics network
expects to capitalise on Caltex Australia’s downstream capabilities, including expertise in convenience retailing and franchising and lubricants as well as supply chain operations. Caltex Australia MD & CEO, Julian Segal said: “We are excited about the growth opportunity that taking a 20 per cent stake in SEAOIL represents for Caltex Australia. SEAOIL’s decision to partner with Caltex Australia recognises our strong track record as a leading supplier of fuels in the region along with the skills and capabilities we have worked hard to build over many years. It also demonstrates the value that can be created from our role as an independent
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fuel supplier in the Asia-Pacific. My team at Caltex and I are looking forward to being part of SEAOIL’s growth over the coming years. “This transaction is an extension of the opportunity to enter target markets which began earlier this year with our acquisition of Gull New Zealand and augments the reputation of Ampol, our Singapore operation, for its complex product supply and shipping capabilities into import markets. Caltex Australia will continue to look for opportunities in the region when they make sense for our shareholders and are a good fit for our business and capabilities.” Subject to satisfaction of the conditions precedent relating to a restructure of the SEAOIL group, completion is expected to take place during the first half of 2018. For more information visit www.caltex.com.au
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