DECEMBER 17/JANUARY 18 Volume 13 Issue No.6
AN INTERNATIONAL CONCEPT IN A CAPTIVE MARKET Oiltanking Matola explains how it is introducing the independent storage model in sub Saharan Africa
SPEARHEADING THE UAE’S NEW GAS CHAPTER The Sharjah National Oil Corporation is ensuring greater energy security as it explores gas storage
REGIONAL FOCUS: AFRICA
The voice of the storage terminal industry
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DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
CONTENTS
Contents News TERMINAL NEWS 08
Africa & Middle East
12
The Americas
16
Europe
19
Asia
20
Global
22
Incident report
34
46
Profiles
31
34
Spearheading the UAE’s new gas chapter
42
An international concept in a captive market
46
South Africa’s newest energy asset
Storage in Africa 24 Tank terminal update: Africa 49 Africa breathes a sigh of relief
Market analysis
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
31
Transforming the energy sector
37
IMO Sulphur fuel cap: what now?
01
CONTENTS
Contents
70
Technical features 52
Technical news
62 Achieving better risk prevention in Chinese terminals 64 One gauge, double the protection 68
Tank jacking: reviving an ageing asset
62
70 Digitalisation: future-proofing terminal operations
81
73 Tank storage management: from analytics to intelligent automation 76
Automating the supply chain
81
Overfill prevention guarantees safer operations
84 Miniaturisation of rupture disks for chemical tank storage
Events
26 02
26
Celebrating the year with a view
87
A new era of energy diversification
88 Advertisers’ index 89
Upcoming events
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
CONTENTS
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Quality Compliance Audits Coating Condition Surveys Vendor Surveillance
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CONTRIBUTORS
Contributors
DECEMBER 17/JANUARY 18 Volume 13 Issue No.6
DECEMBER 17/JANUARY 18 Volume 13 Issue No.6
AN INTERNATIONAL CONCEPT IN A CAPTIVE MARKET Oiltanking Matola explains how it is introducing the independent storage model in sub Saharan Africa
SPEARHEADING THE UAE’S NEW GAS CHAPTER The Sharjah National Oil Corporation is ensuring greater energy security as it explores gas storage
REGIONAL FOCUS: AFRICA
The voice of the storage terminal industry
Front cover courtesy of Oreco
PUBLISHER Margaret Dunn t: +44 (0)20 3551 5721 e: margaret@tankstoragemag.com
EDITOR Jasmin McDermott t: +44 (0)20 3196 4402 e: jasmin@tankstoragemag.com
INTERNATIONAL SALES MANAGER David Kelly t: +44 (0)20 3196 4401 e: david@tankstoragemag.com
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DATABASE MANAGER Darcie Farnsworth t: +44 (0)20 3196 4343 e: darcie.farnsworth@easyfairs.com
SUBSCRIPTION MANAGER Richard Perry t: +44 (0)20 3196 4300 e: richard@tankstoragemag.com
MANAGING DIRECTOR Matt Benyon t: +44 (0)20 3196 4310 e: matt.benyon@easyfairs.com
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@tankstorageinfo Tank Storage Magazine Tank Storage Magazine
Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2017 US Institutional subscription prices is $243. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434. Periodical postage pending at Jamaica NY 11431. Subscription records are maintained at Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.
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Part of
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
CONTRIBUTORS
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
05
COMMENT
Tank Welding LLC.
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T: 541 480 2727 l E: luke@tankwelding.com l W: www.tankwelding.com DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
COMMENT
An energy transformation
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s another year draws to an end, we are left contemplating the news that profound changes are on the horizon for the global energy sector. Now, this isn’t shocking or breaking news, however it signifies the sizeable impact that electric vehicles will have, the push towards renewable fuels as well as the continued production output from the US. The International Energy Agency has gone so far as to call its 2017 World Energy Outlook ‘extraordinary’ as it details the four major drivers of this transformation: oil and gas production in the US, cost reductions for clean energy, growth of electricity and China’s move towards cleaner growth. For many in the industry, this news has been on the agenda for a while – especially the move towards cleaner, renewable fuels, a by-product of the 2015 Paris Agreement. However with a 20-year timeline in place, those across the supply chain will need to start considering how best to adapt their business models and future-proof their operations going forward. Digitalisation is a great way for companies to inject more flexibility and efficiency into their processes, and can pave the way for further innovations in terminals going forward. In this edition, we have a series of articles examining how automation and digitalisation can benefit operators and what the future holds for further development. Despite this looming transformation, oil is still king in the energy mix even though it has undergone some funda-
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
mental changes since this time last year. Recently, OPEC voted to extend production cuts to the end of 2018 after being buoyed by the fact that global oil demand is flourishing along with the global economy. And the storage sector is certainly flourishing in Africa. Burgan Cape Terminals – South Africa’s newest energy asset – is the first independent storage facility in the Western Cape of the country and provides an essential alternative for local fuel supply needs. We speak to general manager Jaap Koomen about how the facility brings greater flexibility and optionality to the market. Further north of the continent, Oiltanking Matola is successfully implementing the independent storage model in sub Saharan Africa. Our interview with MD J.C. (Lo) Vanhaelen reveals more about how the facility is unlocking opportunities for suppliers and distributors in the region. 2017 has certainly been a busy year for the team following news of our new Suppliers Directory launching in 2018 as well as the launch of the Global Tank Storage Association by Easyfairs. The team are busily preparing for our second Tank Storage Awards gala dinner and ceremony in Rotterdam following the huge success of our inaugural event. We look forward to celebrating with many of you there. With best wishes and a happy new year,
With best wishes, Jasmin
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TERMINAL NEWS
All the latest terminal storage news from around the globe
17 Ineos acquires Forties Pipeline System from BP
10 Saudi Aramco & SABIC to develop crude oil & chemicals complex
12 ExxonMobil acquires storage terminal in Texas
Africa & Middle East
Europe
09 OTTCO & Occidental Petroleum sign deal for Raz Markaz terminal
16 Saudi Aramco buys stake in Rotterdam storage terminal
Orpic Logistics starts terminal operations at Oman storage terminal
10 Saudi Aramco & SABIC to develop crude oil & chemicals complex
IL&FS progressing with storage expansion project
Trafigura announces second LNG import terminal in Pakistan
Saudi Aramco inks oil and gas megaprojects
The Americas 12 Contanda acquires Houston land for storage
USD Partners launches Oklahoma destination terminal
ExxonMobil acquires storage terminal in Texas
13 Enbridge secures Presidential permit for pipeline
Peninsula & Houston Fuel Oil Terminal ink storage agreement
New storage terminal for Costa Rica
Pin Oak Corpus Christi completes Gravity Midstream acquisition
14 Expansion planned at Mexican petroleum transload terminal
Inter Terminals’ chemical storage expansion nears completion
17 HES acquires bitumen terminal in Rotterdam
Ineos acquires Forties Pipeline System from BP
Asia 19 Odfjell to sell Singapore terminal for $300 million
Vopak launches bunkering service at Singapore terminal
Dialog plans to expand Langsat Terminal
Mobil New Zealand to build extra storage tanks
Viva Energy commissions new crude oil tank
Global 20 OPEC increases oil demand forecast
Visit www.tankstoragemag.com for the latest news and developments
American Midstream acquires Southcross storage assets
15 New US midstream company created
BP in JV to operate Brazilian ethanol storage terminal
TransMontaigne buys West Coast terminals from Plains
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CONNECT WITH US DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
TERMINAL NEWS AFRICA & MIDDLE EAST
OTTCO & Occidental Petroleum sign deal for Raz Markaz terminal Occidental Petroleum and Oman Tank Terminal Company have signed a deal to store crude at the planned Raz Markaz oil terminal.
A
ccording to S&P Global Platts, an informed source said the memorandum of understanding covers up to two million barrels of Oxy’s crude and possibly even US crude. OTTCO is finalising the engineering and procurement contract for the first phase of the facility, which will comprise 25 million barrels of crude oil storage. The first phase is due to be complete by the end of 2019. Once complete the development could have up to 200 million barrels of crude storage aboveground and a similar amount below ground.
The first phase of the facility will comprise 25 million barrels of crude oil storage and is due to be complete by the end of 2019
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Orpic Logistics starts operations at Oman storage terminal Orpic Logistics Company (OLC) has commissioned and started operations at its oil storage facility in Al Jefnain, near Muscat. The facility comprises a new oil product storage and distribution centre with a capacity of over 170,000 m3 as well as 16 loading racks. It was commissioned by the CLH subsidiary of OLC, which was jointly created by CLH and Orpic. The new facility is equipped with the latest technology, which enables the loading process to be completely automated from the moment the road tankers enter the facility until the relevant documentation is printed. The facility receives fuel from the Sohar refinery through a new pipeline, the first one of its type built in the country. This makes it possible to reduce fuel transport by road and to increase the safety and efficiency of fuel distribution in Oman. It is expected that in the coming months, the new plant will also be connected via pipeline with the refinery in Mina Al Fahal and Muscat international airport. Once fully operational, the new logistics system will supply more than 50% of the country’s fuel. It will provide a higher supply capacity of aviation fuel, as well as greater efficiency and sustainability, thanks to the use of the pipeline.
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
www.koerting.de +49 511 2129-221 · st@koerting.de
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TERMINAL NEWS l AFRICA & MIDDLE EAST
Saudi Aramco & SABIC to develop crude oil & chemicals complex Saudi Aramco and SABIC have signed a MoU to develop a fully integrated crude oil to chemicals complex in Saudi Arabia.
T
he complex is expected to process 400,000 barrels per day of crude oil, which will produce 9 million tonnes of chemicals and base oils annually and is expected start operations in 2025. Saudi Aramco president and CEO Amin Nasser says: ‘This project converges the commercial and strategic interests of both Saudi Aramco and SABIC, while reinforcing Saudi Aramco’s efforts to optimise the investment of our petroleum resources. The complex will also help expand our downstream portfolio, reducing our focus on the transportation sector and securing new and promising commercial opportunities.’ The complex will be constructed based on an innovative configuration that achieves a crude oil to chemicals conversion which is unprecedented in the industry. The project will support the creation of a world-leading downstream sector in Saudi Arabia, as part of the Kingdom’s Vision 2030 economic transformation programme.
IL&FS progressing with storage expansion project IL&FS is going ahead with a planned phase II expansion project at its Fujairah terminal and has denied that it is looking for a buyer. It has strongly rebutted news reports that it is exploring a sale of its storage terminal, saying that the news is incorrect and misrepresents facts. It has confirmed that it is not divesting its share in the Fujairah terminal, that its occupancy level is robust and that its revenue is stable. It is also progressing with its planned expansion to be able to provide improved services to existing and potential customers. In a statement, a spokesperson for IL&FS Maritime Infrastructure Company in Mumbai, says: ‘IL&FS Group has a long term vision for Fujairah and will continue to remain positive on the oil storage business in the region regardless of the current geo-political situation.’
Saudi Aramco inks oil and gas megaprojects Saudi Aramco has agreed to a slate of oil and gas megaprojects, including new pipelines, gas plants and offshore oil fields, valued at nearly $4.5 billion. Eight agreements were signed with several oil and gas service contractors to expand gas production and localise domestic content. These projects include the Free Flow Pipeline Contract, which allows for an early start of the Haradh Gas Increment Programme. It comprises the installation of around 450 kilometres of pipeline network by early 2019. Another project involves the facilities to process 600 MBCD of Arab heavy crude oil from Zuluf offshore field. This includes water injection and oil wellhead platforms, tie-in platforms, trunk lines and flowlines in addition to new processing facilities. The crude will then be transported to Ju’aymah terminal via new downstream pipelines. The separated gas and condensate streams will be transported to the proposed Tanajib Gas Plant via new pipelines.
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Trafigura announces second LNG import terminal in Pakistan Trafigura has announced plans to develop a second LNG import terminal project at Port Qasim in Pakistan. The commodity trader announced its plans following the inauguration of GasPort’s new LNG floating storage and regasification import terminal at the port, which it is a minority investor of. The new terminal will more than double Pakistan’s current LNG regasification capacity, and will be able to supply 90 million cubic feet of gas to private buyers in Pakistan each day. However, even after this facility reaches full capacity, there will still be a significant supply shortfall of 19 million tonnes of LNG per annum, which has spurred Trafigura to develop a second terminal. The company will partner with PGPL in developing a new merchant FSRU project. The JV will sell gas to private sector endusers without direct government involvement. It will include a new jetty, berth and a second FSRU, benefiting from cost synergies with the existing facility. It also offers the potential to turbo-charge import growth and rapidly scale up industrial use of LNG in the country.
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
TERMINAL NEWS l THE AMERICAS
Odfjell Terminals Rotterdam
Expanded operations to best serve your chemical logistics needs
For 60 years, Odfjell Terminals (OTR) has served our customers’ storage needs in the heart of Rotterdam. Today the global chemical industry and landscape are changing rapidly, and we are increasing our capacity for the future. With detailed plans to be the best-in-class provider of tank storage and associated services for liquid bulk products, our newly initiated value creation program leads the
way to improved operational efficiency and customer service. Learn about our industry leading safety measures, our infrastructure investments and digital evolvements to meet the needs of the chemical industry for the years to come. For your supply chain optimisation needs, let Odfjell be your preferred choice.
Please contact us at
rtm.sales@odfjell.com / Tel: +31 10 2953 890
Odfjell.com DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
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TERMINAL NEWS l THE AMERICAS
TERMINAL NEWS THE AMERICAS
Contanda acquires Houston land for storage terminal Contanda Terminals has acquired 339 acres of land within the Port of Houston to further develop its storage terminal capability.
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he multi-year commercial agreement covers a piece of prime, deep-water access property located on the Houston Ship Channel. This acquisition enables Contanda to continue to develop its key strategic business objective of doubling its terminal storage capability over the next five years, and to expand into the bulk petrochemical and hydrocarbon markets. The company says it will further strengthen its presence along the US Gulf Coast where project investments have surged since 2014. It operates three other bulk terminals along the Gulf Coast. G.R. (Jerry) Cardillo, president and CEO of Contanda, says: ‘This agreement with the Port of Houston Authority solidifies our long-term commitment to grow with the Port of Houston and the Houston Ship Channel.
‘With this project, Contanda has the opportunity to make significant strides in achieving our corporate goals while firmly establishing our position as a leading storage provider in the growing petrochemical and hydrocarbon markets. We firmly believe in the Port of Houston, its capabilities and the opportunities it presents to our customers and shareholders.’ Contanda’s automated terminal facility will be built in phases to provide customers access to onsite processing, multiple ship and barge docks, and convenient tank truck and railcar accessibility. The facility is centrally located for numerous pipeline connections, providing support storage services for a variety of commodities including petrochemical, clean petroleum products, various blend stocks, ethanol, crude oil, and refinery intermediates and other bulk commodities.
‘Contanda has the opportunity to make significant strides in achieving our corporate goals’
USD Partners launched Oklahoma destination terminal USD Partners has started operations at its crude oil terminal in Stroud, Oklahoma. The planned work required to allow the terminal to handle heavier grades of crude oil was completed on time and under the initial planned budget. The Stroud terminal provides a destination point for rail-to-pipeline shipments of heavy crude oil from USD’s Hardisty terminal in Western Canada and provides connectivity to one of the largest crude oil storage hubs in North America – Cushing. Approximately 50% of the Stroud terminal’s current capacity is available and actively being marketed to meet the takeaway needs of current and future customers. Alexandra Batycky, associate director of USD Group, says: ‘Our ability to deliver on time and under budget is a testament to the dedication, collaboration, and execution by the various stakeholders involved including our customer, the railroads and USD.’
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ExxonMobil acquires storage terminal in Texas ExxonMobil has bought a crude oil storage terminal in Wink, Texas from Genesis Energy. The Delaware Basin terminal is strategically positioned to handle Permian Basin crude oil and condensate for transport to Gulf Coast refineries and marine export terminals. It is interconnected to the Plains Alpha Crude Connector pipeline system, and is permitted for 100,000 barrels per day of throughput with the ability to expand. Gerald Frey, president of ExxonMobil Pipeline Company, says: ‘The terminal provides crude producers with a full range of logistical options including truck, rail and inbound and outbound pipeline access, not only for ExxonMobil’s production, but for all Permian Basin producers. ‘It also provides shippers with efficient and cost-effective access to market destinations in the Gulf region.’ Once complete, this terminal will be ExxonMobil’s first in the Permian Basin to be anchored by the company’s newly acquired Delaware Basin acreage.
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TERMINAL NEWS l THE AMERICAS
Enbridge secures Presidential permit for pipeline Enbridge Energy has had a Presidential permit issued for its Line 67 pipeline following a five-year review process. The permit authorises the company to increase transport up to a full design capacity of 890,000 barrels per day of crude oil and other hydrocarbons across a three-mile segment at the US – Canada border near Neche, North Dakota though Enbridge’s terminal in Wisconsin. Line 67 currently operates under an existing Presidential permit that was issued by the State Department in 2009. The 2017 permit authorises Enbridge to fully utilise its capacity across the border. Line 67 is a key component of Enbridge’s mainline system, which US refineries rely on to supply crude oil.
Peninsula & Houston Fuel Oil Terminal ink storage agreement Peninsula Petroleum has reached a new storage agreement with the Houston Fuel Oil Terminal to support its bunkering operations in the region.
New storage terminal for Costa Rica A new liquid bulk storage terminal is being built in the Port of Caldera, Costa Rica. Caldera Liquid Terminal will be the first terminal to store solvents, alcohol and oils from March 2018 in the port. In its first phase, the $4.6 million terminal will comprise six tanks with 800 m3 of capacity. This is due to be operational in February 2018. Work on its second phase will start in April 2018, and is due to be complete by August 2018. This will comprise four additional tanks, each 800 m3. The terminal will offer facilities for the storage and manipulation of bulk liquids. Fernando Odio, president of the terminal, is reported as saying: ‘Costa Rica does not have this kind of infrastructure in the Pacific, although it already does in the Atlantic Coast. ‘The main goal is for national and international companies to import liquid bulk products, store them near the port, and distribute them by means of tankers to their respective factories.’
The company says this is the latest step in its strategy of converting its remaining light physical operations into a full physical model (barging plus storage logistics) in the Americas. Moving into the terminal means presence in one of the busiest fuel oil terminals globally, enabling Peninsula to source product directly from the local Platts MOC, one of the main keys to maintaining a long-term competitive and reliable supply structure. The agreement includes the capability to supply bunkers ex-pipe for those ships calling at the terminal.
Pin Oak Corpus Christi completes Gravity Midstream acquisition Pin Oak Corpus Christi has completed the acquisition of Gravity Midstream Corpus Christi. The owners of Pin Oak Terminals, Dauphine Midstream and Mercuria Energy Group provided equity financing for the transaction. Dauphine and Mercuria also recently commissioned a new storage terminal – Pin Oak Terminals – in Louisiana, which has approximately four million barrels of contracted capacity. Pin Oak Corpus Christi has 737,500 barrels of storage, pipeline connections into nearby refineries, a crude processing unit, a polymer modified asphalt plant, rail loading and unloading facilities, a truck rack and access to Aframax and barge docks. There are also long-term contracts in place to significantly expand the terminal’s operations. Craig Peus, CEO of Gravity Midstream, says: ‘The team at Corpus Christi is excited to be joining the Pin oak family and partnering with investors who are dedicated to taking the terminal to the next level by expanding the terminal’s operations and building a strategic hub in Corpus Christi.’
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
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TERMINAL NEWS l THE AMERICAS
Expansion planned at Mexican petroleum transload terminal
American Midstream acquires Southcross storage assets
Savage Companies plans to significantly expand the capabilities of its new petroleum transload terminal in central Mexico in 2018.
American Midstream Partners has agreed to acquire certain assets from Southcross Holdings including pipelines and storage facilities.
Operations at the new facility, run by a subsidiary of Savage, will start in January 2018, with expansion plans expected later in the year. The facility, located near the city of Querétaro, is served by the Kansas City Southern (KCS) de Mexico railroad and provide access to strategic ports and US based refinery centres. The facility will provide a location for transferring and storing refined petroleum products. It will initially serve manifest rail volumes, transferring products directly from railcars into trucks. Savage plans to add tank storage and fixed facilities for high-speed rail unloading, product blending and truck loading. At full build out, the terminal
will handle unit train volumes. Kirk Aubry, Savage president and CEO, says: ‘We are excited to leverage our team’s experience operating transload facilities and rail operations to reduce the logistics costs of moving and managing refined petroleum products in Mexico.’ Patrick J. Ottensmeyer, KCS president and CEO, adds: ‘We believe this terminal will facilitate additional refined product exports from US Gulf Coast refineries in support of Mexico energy reform. Savage’s experience and commitment to excellence gives us the confidence that this new refined products terminal will provide additional market options in support of Mexico’s new energy infrastructure.’
Additionally, American Midstream has proposed to merge Southcross Energy Partners into a wholly owned subsidiary of American Midstream Partners. These agreements form two separate transactions totalling $815 million. Once complete, American Midstream will own and operate integrated midstream infrastructure including: • 8,000 miles of crude, natural gas and NGL pipelines • Ten processing plants with more than 1.0 Bcf/d of capacity • 6.7 million barrels of above-ground liquids storage capacity Lynn L. Bourdon III, chairman, president, CEO of American Midstream, says: ‘This transaction accelerates our transformation into a fully integrated gathering, processing and transmission company focused in select core areas. ‘The addition of the Southcross assets allows us to capture the full midstream value chain in the very prolific Eagle Ford basin. The transaction represents a unique opportunity to expand our onshore gathering, processing and transmission services.’
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DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
TERMINAL NEWS l THE AMERICAS
New US midstream company created Blackline Partners and TPG Sixth Street Partners have created a new JV aimed at acquiring and developing oil and gas midstream infrastructure assets.
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he new company, Blackline Midstream, has acquired SEA-3, owner of New England’s propane storage and distribution terminal in New Hampshire from Trammo. The facility consists of 530,000 barrels of propane storage, a five-lane 24/7 truck loading rack, an ocean-access marine vessel receiving and loading dock and a six spot rail receiving rack. Additionally, SEA-3 has a fully approved upgrade project which will significantly increase the rail unloading capacity of the terminal, giving it access to both domestic and international markets. Mike Day, CEO of Blackline Partners, says: ‘Blackline’s deeply experienced operations management team, combined with TSSP’s financial strength and expertise position us to integrate SEA-3 into a strong, wellequipped midstream growth platform. ‘We will immediately commence the rail expansion project at Newington in order to position SEA-3 as the most flexible and reliable propane supply terminal in the northeast US.’ David Herr, VP of marketing at Blackline, who will be managing product commercial operations for Blackline Midstream, adds: ‘With the rail expansion project, we will be able to remain competitive under any market supply scenario. ‘All existing commercial agreements will be carried forward, and customers of the terminal will experience a seamless transition following the acquisition.’
TransMontaigne buys West Coast terminals from Plains TransMontaigne Partners will purchase the Martinez Terminal and Richmond Terminal from an affiliate of Plains All American Pipeline for $275 million. The acquisition by a subsidiary of TransMontaigne expands its storage and terminalling footprint in the San Francisco Bay Area refining complex. It is expected to close at the beginning of 2018. The facilities include two waterborne refined product and crude oil terminals, comprising a total of 64 storage tanks with 5.4 million barrels of storage capacity. They have extensive connectivity to domestic and international refined product and crude oil markets through significant marine, pipeline, truck and rail capabilities.
They are supported by multi-year, fee-based agreements with contract terms of up to five years. Fred Boutin, CEO of TransMontaigne Partners, says: ‘We believe that this transaction strengthens our position as one of the leading refined products terminalling and transportation service providers in the country. ‘The West Coast facilities are strategically located within the San Francisco Bay area refining complex, one of the largest refining complexes in North America.’
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
BP in JV to operate Brazilian ethanol storage terminal BP Biofuels and Copersucar will own and operate a major ethanol storage terminal in Brazil. The 50/50 joint venture will own and operate the Terminal Copersucar de Etanol in Paulínia in the state of São Paulo, which is currently solely owned by Copersucar. It has ten tanks with a total storage capacity of 180 million litres of ethanol and moves around 2.3 billion litres per year, with the potential for further expansion. It is located in one of Brazil’s main fuel hubs and operates in a multimodal way, connected to important transport networks, pipelines and will soon be connected to the railway. The facility supports the strategy of both companies – connecting important ethanol production with flexible storage capacity close to the main ethanol consumer
markets in Brazil. The terminal will continue providing services to its current customers. Dev Sanyal, BP’s CEO of alternative energy, says: ‘Brazil is one of the largest markets globally for ethanol as a fuel and this collaboration with Copersucar enables us to extend and expand our existing value chain to meet its growing demand.’ Paulo Roberto de Souza, president of Copersucar, says: ‘The new joint venture will optimise ethanol logistics, with competitiveness gains and more flexibility in the way we serve the market. In addition to the values we share, the partnership with BP reinforces our commitment to the development of biofuels in Brazil.’
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TERMINAL NEWS l EUROPE
TERMINAL NEWS EUROPE
Saudi Aramco buys stake in Rotterdam storage terminal Gunvor is selling its stake in the Maasvlakte Olie Terminal in Rotterdam to a subsidiary of Saudi Aramco.
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unvor, one of the largest international trading houses, acquired its stake in the terminal through its acquisition of Gunvor Petroleum Rotterdam in 2016. The sale to Aramco Overseas Company (AOC) is part of Gunvor’s strategy to further develop its Rotterdam refining operations. AOC’s investment in the terminal, which is one of the largest oil facilities in the world, will add to its current participation in other facilities in the same area, allowing for expanded offerings in the North West Europe refining hub. It will complement Saudi Aramco’s export activities in Europe, strengthen the company’s supply chain and enhance its customer services in the region.
Inter Terminals’ chemical storage expansion nears completion Inter Terminals’ major chemical storage expansion at its Seal Sands terminal in the UK is almost complete. Representing the largest organic development project for ten years, the project comprises new tanks and pipeline links on the back of contracted demand for chemical storage at the facility. Two 7,000 m3 mild steel tanks have been constructed with internal floating roods and a dedicated import pipeline for receiving product into storage by sea. Additionally, an existing cross-country pipeline is being
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redeveloped to allow the direct transfer of stored product to nearby chemical manufacturing plants. A further three mild steel tanks, with a total capacity of 13,000 m3, have also been built with interconnecting infrastructure to enable to export of product by sea and by road via a new tanker loading facility. The facility is located on the River Tees on England’s east coast and the investment demonstrates the company’s commitment to working closely with its customer base to identify and develop solutions for specific product storage and handling requirements.
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TERMINAL NEWS l EUROPE
HES acquires bitumen terminal in Rotterdam HES International has agreed to purchase the Valt Asphalt Terminal from Valt.
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he bitumen terminal in Botlek Rotterdam delivers storage, handling and blending services to the European and African bitumen market. During 2018, HES plans to upgrade the terminal by investing in tanks and ancillary infrastructure. Paul van Poecke, head of liquid bulk terminals at HES, says: ‘This acquisition is in line with HES International’s liquid bulk strategy to expand our storage footprint in Europe. ‘The existing and potential future storage capacity can play an important role in meeting the increasing local and regional bitumen trade flows, in particular with IMO regulations, focussed on reducing sulphur levels in marine bunker fuels, kicking in by 2020. ‘Besides the terminal is located close by our HES Botlek Tank Terminal and adjacent to European Bulk Services, both 100% subsidiaries of HES, providing significant levels of synergy.’
Ineos acquires Forties Pipeline System from BP Ineos has completed the purchase of the Forties Pipeline System (FPS), including associated pipelines, plants and storage terminals, from BP. The 235-mile pipeline system linked 85 North Sea oil and gas assets to the UK mainland as well as to the Ineos site in Grangemouth, Scotland. This system delivers almost 40% of the UK’s North Sea oil and gas production. Ineos now owns and operates FPS, the Kinneil gas processing plant and oil terminal, the Dalmeny storage and export facility, sites at Aberdeen, the Forties Unity Platform and associated infrastructure. This deal consolidates the company’s position at a top ten company in the North Sea.
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DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
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TERMINAL NEWS l EUROPE
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DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
TERMINAL NEWS l ASIA
TERMINAL NEWS ASIA
Odfjell to sell Singapore terminal for $300 million Odfjell Terminals will sell its 50% ownership in Oiltanking Odfjell Terminal Singapore to a fund managed by Macquarie Infrastructure and Real Assets for $300 million.
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he transaction will result in a net gain for Odfjell of approximately $135 million. The closing of the transaction was expected during the fourth quarter of 2017. Kristian Mørch, CEO of Odfjell and chairman of Odfjell Terminals, says: ‘We are pleased to have concluded on the sale of our Singapore terminal at what we believe is a very attractive valuation and a testimony to the strength and quality of the investments made in Singapore since 2001.’ Frank Erkelens, CEO of Odfjell Terminals, adds: ‘This divestment is in line with our strategy to focus on the terminals where we have managerial control of the assets and to further invest in growth opportunities in our core markets, such as Houston and Rotterdam.’
This divestment is in line with our strategy to focus on the terminals where we have managerial control
Vopak launches bunkering service at Singapore terminal
Dialog plans to expand Langsat Terminal
Vopak has launched bunkering services at its Seabarok terminal in Singapore, allowing tankers to refuel at the same time as loading or discharging cargoes.
The Dialog Group plans to expand Langsat Terminal (Three) into a 300,000 m3 storage facility.
The terminal is located close to Singapore’s eastern anchorage, where a significant majority of bunkering activity takes place. The service will eliminate the time needed to move tankers calling at the facility to designated anchorage elsewhere in Singapore for bunkering. Prior to this new service, tanker vessels needed to sail to the anchorage to receive their bunkers. Tan Soo Koong, Vopak Terminals Singapore managing director, says: ‘This concurrent bunkering makes the scheduling of bunker supply more predictable, and is in line with the Maritime and Port Authority of Singapore’s directive to improve port efficiency.’ This service is the result of a collaboration with BW Pacific, Singanju Marine Services, and Unicore Fuel. Vopak says the service will be progressively expanded to its other terminals in Singapore.
Mobil New Zealand to build extra storage tanks Mobil Oil New Zealand plans to build two fuel storage tanks to improve fuel supply capacity for the South Island. The tanks at its fuel terminal in Lyttelton will replace those damaged by a 2014 landslide at Mobil’s Naval Point facility. They will be located adjacent to Mobil’s existing terminal at George Seymour Quay and will store petrol and diesel. They are expected to be complete by early 2019. The work is the latest in several recent major investments by the company to enhance its fuel product offerings to customers. This includes work to upgrade its bulk fuels terminal at Mount Manganui. Andrew McNaught, country manager for Mobil, says: ‘Construction of new tanks will restart fuel storage capacity at our Lyttelton operation, which, along with the Lyttelton-Woolston pipeline and Woolston Terminal, is an important part of the fuel supply chain in the South Island.’
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
In its first quarter 2018 financials the company says it increased its stake in Langsat Terminal (One) and Langsat Terminal (Two), both providing centralised tankage and terminal facilities in Tnajung Langsat Johor. The expansion of Langsat Terminal (Three) is part of its strategy to grow sustainable and recurring income and further enhancing shareholders’ value in the long term. As previously reported, Dialog’s Pengerang Deepwater Terminal phase 1 is being expanded with an additional 430,000 m3. The construction of phase 2 is on schedule and it is securing new potential partners for phase 3, which will include the development of industrial land and more petroleum and petrochemical storage terminals. Phase 3 and future phases will be developed on an 800 acre parcel of land. The company increased revenue by 19.1% in its first quarter to RM778.7 million.
Viva Energy commissions new crude oil tank Viva Energy Australia has opened its new 100 million litre crude oil tank at its Geelong Refinery. The $50 million crude oil tank project was a significant growth investment for the refinery, which will not only increase its production capabilities, but also improve fuel supply security for Victoria. Viva Energy GM Refining Thys Heyns, says: ‘This tank increases our crude storage capacity by 40% and in fact can hold enough crude oil to produce all the fuel required to meet Victoria’s needs for about three days. ‘In addition to the tank, we’ve invested millions in other infrastructure projects such as the $23 million pumping station, which increases the amount of fuel transported by pipeline to Melbourne by 25% and a $4 million upgrade to our jet fuel gantry.’ Additionally, Viva Energy has also announced it has been given approval to build a $15 million bitumen export facility, a $23 million, 25 million litre petrol tank and a $7 million revamp of its crude distillation unit furnace.
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TERMINAL NEWS l GLOBAL
TERMINAL NEWS GLOBAL
OPEC increases oil demand forecast OPEC has revised its long-term oil demand outlook upwards by 1.7 million barrels a day as oil is set to dominate the energy mix in the future.
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n its 2017 World Oil Outlook OPEC says that total primary energy demand is set to increase by 35% in the period to 2040 and that oil is expected to remain the fuel with the largest share in the energy mix through to 2040. The document sets out that long-term oil demand has increased by 1.7 million barrels a day compared to its 2016 counterpart, with total demand sitting at over 111 million barrels a day by 2040. This is despite the talk of relying more on alternative forms of energy, from renewable fuels to the growing trend of electric vehicles. In fact, long-term oil demand will come mainly from road transportation, making up 5.4 million barrels per day, followed by petrochemicals and then the aviation sector. However, OPEC does recognise various international efforts to increase the use of electric vehicles into consumer behaviours. It says that in the passenger car segment, electric vehicles will represent 12% of the car fleet by 2040. Additionally, the international organisation does not expect to hit peak oil demand over the forecast period to 2040. Around half of the estimated refining capacity additions will be focused in the booming Asia-Pacific region, which is projected to add 9.5 million barrels per day by 2040. OPEC Secretary General His Excellency Mohammad Sanusi Barkindo, says: ‘The past year has been an historic one for OPEC and the global oil industry. Since publication of the World Oil Outlook in 2016, the oil market has undergone a fundamental change. It has been a period where the rebalancing of the global oil market has gathered vital momentum, buoyed by a number of important factors. ‘We need to remember that the short, medium and long-terms are all intertwined, which is underscored in the World Oil Outlook 2017.’ CONFERENCE AGREES TO EXTEND OIL PRODUCTION CAP OPEC oil production output cuts have been extended to the end of 2018 as global oil demand has flourished along with the global economy.
At its 173rd meeting in Vienna, OPEC members and non members agreed to continue the production adjustments until December 2018 ‘while assuring full and timely conformity’. Additionally, OPEC stipulated a clause in the new agreement which allows it to re-evaluate conformity and stock levels in June 2018. At that time it will examine prevailing market conditions and the progress made towards rebalancing. Member countries that agreed to the extension continue their focus on a stable and balanced oil market in the interests of both consumers and producers. The meeting observed that market rebalancing has gathered pace since May, with the OECD stock overhand falling to around 140 million barrels above the five-year average for October. Crude oil in floating storage has also significantly fallen over the period. Global oil demand has also been robust with upward revisions since May, with oil demand growth standing above 1.5 million barrels a day for both 2017 and 2018. HE Khalid A. Al-Falih, Saudi Arabia’s Minister of Energy and president of the conference, says: ‘There is now global recognition that without our collaborative action, the market would have continued to exhibit extreme volatility and future uncertainty, with far-reaching negative consequences for producers, consumers, investors, the industry, and the global economy at large. ‘Oil demand growth, on the other hand, is on firm ground, and the direction of the market over the past several months shows a distinct improvement in both fundamentals and the overall market sentiment. This gratifying outcome has resulted primarily from 100% - or more- compliance to the production targets by OPEC and non-OPEC producers. ‘Such positive developments to date show that we’re heading in the right direction – but we are still not where we want to be in terms of inventories reaching their target levels, and must remain resolutely focused on this task.’
The oil market has undergone a fundamental change. It has been a period where rebalancing of the global market has gathered vital momentum, buoyed by a number of important factors.
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DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
TERMINAL NEWS l XXXXXXX
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INCIDENT REPORT
INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 3/11/17
16/11/17
Marshall County, South Dakota
Selangor, Malaysia
TransCanada
Three maintenance workers died following an oil storage tank explosion at a cement factory in Kuala Garing. It is believed that the victims, who were carrying out maintenance work near the tank, fell into the tank after it caught fire and exploded. The fire and rescue department needed to pump out the oil from the tank as part of the search for the missing workers.
A fire broke out in a brine pit at Enterprise Products Partners’ natural gas liquid fractionation and storage complex. The blaze started when hydrocarbons mixed in the salt water brine were ignited. No injuries were reported as a result of the fire and it was quickly contained and extinguished.
17/10/17
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22/11/17
La Salle County, Texas
Pointe a la Hache, New Orleans
Carrizo Oil
XTO Energy
Two people were injured in an explosion and fire at an oil tank battery in a facility in Texas. An exclusion zone was established as firefighters waited for the fire to die down while preventing the flames from spreading. An investigation has been launched to establish the cause of the blaze.
A hole in a pipeline leaked around 1,260 gallons of oil into a marsh. The US Coast Guard recovered the oil from the marsh near Pointe a la Hache and the leak, on a flow line that transports product from wells to a nearby storage facility, was quickly secured. The well was shut after the leak was discovered and a controlled burn was carried out by the coast guard to remove the remaining oil from the marsh. An investigation has been launched into the cause of the spill.
DECEMBER 17/JANUARY 18 VOLUME 13 ISSUE NO.6
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