FEBRUARY/MARCH 18 Volume 14 Issue No.1
THE STORAGE OUTLOOK Six international operators review events from 2017 & share their thoughts on the year ahead
A NEW PLAYER IN THE EUROPEAN MARKET
Alkion Terminals has ambitions to establish itself as a significant pan-European storage provider
REGIONAL FOCUS: EUROPE
The voice of the storage terminal industry
PROFILE l XXXXXX XXXXXX
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FEBRUARY/MARCH 18 VOLUME 14 ISSUE NO.1
CONTENTS
Contents
28
News TERMINAL NEWS 09
Africa & Middle East
12
The Americas
21 Asia 22 Europe 24
Incident report
Profiles
43
28
A new player in the European market
32 Investing in significant potential on the Thames 43 IPTF terminal: defying the odds in the Middle East 46
Alternative gateway to Europe
Storage in Europe 25
Tank terminal update: Europe
49 Europe: a flexible storage market
Terminal outlook 56
FEBRUARY/MARCH 18 VOLUME 14 ISSUE NO.1
Six international storage operators with facilities across the globe review events from 2017 and share with Tank Storage Magazine what they think will be the big trends emerging in 2018‌ 01
CONTENTS
Contents
78
Technical features 63
Technical news
70
Overfill protection: a review of API 2350 4th and 5th edition
72 An entrepreneurial spirit to innovation 74
Good leadership in process safety
78 The second line of defence 80
Reducing operational & financial risk
83
Emulation: the cost-effective solution to tank gauging upgrades
87 Heightened security risks require adaptable operations 90
The safe approach to tank cleaning
94 A culture of care to avoid catastrophe 96 Designing an optimal fire protection ITM programme 101 Making operator safety a top priority 102 Automated process control delivers safety and economy 104 Deluge valves make their way to the Middle East
Events 125 Speaker interviews Insights from a selection of StocExpo Europe industry experts 128 A storage innovation transition 131 A storage innovation solution 150 Storage: future challenges & developments 152 Advertisers’ index 153 Upcoming events
106 The time of infrared inspections 109 A novel method of monitoring internal corrosion 111 The future of tank cleaning safety 114 Three decades of cleaning innovation 116 A highly elastic surface sealing system 118 Transforming data into value 122 Success in the Middle East 02
128 FEBRUARY/MARCH 18 VOLUME 14 ISSUE NO.1
CONTENTS
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CONTRIBUTORS
Contributors FEBRUARY/MARCH 18 Volume 14 Issue No.1
FEBRUARY/MARCH 18 Volume 14 Issue No.1
THE STORAGE OUTLOOK Six international operators review events from 2017 & share their thoughts on the year ahead
A NEW PLAYER IN THE EUROPEAN MARKET
Alkion Terminals has ambitions to establish itself as a significant pan-European storage provider
REGIONAL FOCUS: EUROPE
The voice of the storage terminal industry
Front cover courtesy of Emerson Automation Solutions
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
US SALES REPRESENTATIVE Greg Mosho t: +1 732 610 5735 e: greg@tankstoragemag.com
DATABASE MANAGER Darcie Farnsworth t: +44 (0)20 3196 4343 e: darcie.farnsworth@easyfairs.com
HEAD OF MARKETING Elizabeth Brodie t: +44 (0)20 3196 4391 e: elizabeth.brodie@easyfairs.com
MANAGING DIRECTOR Matt Benyon t: +44 (0)20 3196 4310 e: matt.benyon@easyfairs.com
SUBSCRIPTION MANAGER Richard Perry t: +44 (0)20 3196 4300 e: richard@tankstoragemag.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 2018 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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FEBRUARY/MARCH 18 VOLUME 14 ISSUE NO.1
CONTRIBUTORS
Safety By Design, NOT Safety by Approval
Safety Integrity Level IEC 61508
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Level Plus® www.mtssensors.com/level | sensorsinfo@mts.com | 800.633.7609 FEBRUARY/MARCH 18 VOLUME 14 ISSUE NO.1
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COMMENT
A confident outlook
W
e start 2018 with a degree of buoyancy in global energy markets. The global oil glut has halved, and the great market rebalancing is occurring faster than analysts expected. Experts are decidedly bullish on 2018 oil prices and even with growing output from US shale producers, global demand should easily absorb this excess. This confidence is reflected in a reinvigorated merger and acquisition markets, thanks partly by the steady climb of the oil price from its slump in 2014. Company executives are now more motivated to undertake strategic collaborations in the form of JVs, acquisitions, mergers and partnerships to reinforce their market position. In fact, several factors are in place for M&A activity to continue in the oil storage sector including competition, fluctuations in rates as well as changing fuel oil specifications. In this edition we delve deeper into these trends and examine recent M&A activity, as well as look at how investor behaviour has changed over the last 10 years. And new storage players continue to emerge, keen to capitalise on the attractiveness of these key logistical assets. Alkion Terminals emerged onto the European market a year ago, focused on acquiring and owning assets in key logistics gateway locations. In an exclusive interview, Rutger van Thiel, CEO at Alkion explains more about the company’s ambitions to establish itself as a significant pan European tank storage provider. In this, our first edition of the year, we speak to six international storage operators on their thoughts about what 2018 has in store for the industry, which includes rising costs, regulations and a
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positive global economic outlook. Many are also continuing to grow and further optimise their business in the face of remarkable market changes. Growth is also firmly on the agenda for the Port of Tarragona, which has ambitions to become part of a larger, integrated Mediterranean logistics hub. We speak to commercial director Genoveva Climent about the outcome of its first hub day workshop. The US continues to hit the headlines in global energy markets. Not only does it account for 26% of the total global liquids storage capacity, but it is also transforming world oil markets as exports surge from the country. According to Reuters, US shipments to China have hit a record 400,000 barrels per day - an exceptional feat from nothing in 2016. DTN’s energy editor Brian Milne shares his oil and gas predications in this edition, with forecasts predicting this year will be a record breaking one for US crude production. It is always a pleasure to have so much to write about and this is reflected in the variety of articles in this edition, which is the official publication for StocExpo Europe, with every visitor and delegate getting a copy. It is also the official publication for our second Tank Storage Awards at the Floating Pavilion. I hope you enjoy this bumper edition and look forward to seeing many of you in Rotterdam.
With best wishes, Jasmin
FEBRUARY/MARCH 18 VOLUME 14 ISSUE NO.1
3D LASER SCANNING
COMMENT
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Advanced 3D Laser Solutions Ltd, The MedBIC, Alan Cherry Drive, Chelmsford, CM1 1SQ T: +44 (0) 1245 407551 M: +44 (0) 7435 760153 E: colin@lasersurveying.com For Benelux enquiries contact René van Eerten T: +31(0)610741994 E: rene@induzzsolutions.nl FEBRUARY/MARCH 18 VOLUME 14 ISSUE NO.1 www.lasersurveying.com
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TERMINAL NEWS
All the latest terminal storage news from around the globe
22 Zenith acquires storage terminal assets from Shell
10 Additional land for storage terminal in Namibia
12 LBC Tank Terminals to build new Texas storage terminal
Africa & middle east
17 NuStar announces expansion for Permian crude system
Keyera starts new Canadian crude oil storage terminal
09 Storage hub plans emerge for East Africa
Kinder Morgan starts operations on Utopia Pipeline
10 Additional land for storage terminal in Namibia
18 Navigator to expand pipeline and storage assets
Plans to build new tank farm in East Africa
Prostar Capital buys Fujairah storage terminal
Zenith completes Arc Logistics acquisition
20 Contanda plans to expand Washington storage terminal
the americas
Asia 21 Companies agree to financing of Pengerang terminal
12 Vitol and Harvest to develop crude oil terminal in Texas
15 LBC Tank Terminals to build new Texas storage terminal
Oiltanking Odfjell Terminal Singapore changes shareholders
Corpus Christi expansion to be complete by 2020
EUROPE 22 Glencore completes sale of HG Storage stake
Plains proceeding with new Permian pipeline
EU to invest in Croatian LNG terminal
Zenith acquires storage terminal assets from Shell
16 Tallgrass announces significant storage terminal developments
Enterprise & Navigator to build ethylene export terminal
23 Vopak, Oiltanking & Gasunie to build German LNG terminal
Gibson Energy to focus on oil infrastructure
Ineos launches six oil & gas businesses
Visit www.tankstoragemag.com for the latest news and developments
CONNECT WITH US 08
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
TERMINAL NEWS l AFRICA & MIDDLE EAST
TERMINAL NEWS AFRICA & MIDDLE EAST
Storage hub plans emerge for East Africa A strategic storage hub is planned for the distribution of petroleum products in Tanzania and other East African countries.
T
he plans emerged following the commissioning of a storage terminal with 36 million litres of capacity by the Sahara Group in Tanzania. The facility is located in Dar Es Alaam and will be operated by Sahara Tanzania. It has capacity of 18 million litres for automotive gas oil and 18 million litres for Premium Motor Spirit. It also has six loading arms for PMS and six loading arms for AGO. Raymond Lusekelo, supply manager at the Petroleum Bulk Purchasing Agency, said at the official commissioning of the facility that the company entering the oil and gas sector in Tanzania was remarkable at a time when
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
the administration of His Excellency John Magufuli was helping to drive significant investment in the sector. Terminal manager Taofik Lawal added: ‘We bring smart solutions to energy needs by deploying the best possible technology as well as distribution and storage facilities that are world class. Our operations are guided by best international practice and we are passionate about total quality management and excellent service delivery. ‘The energy sector in Tanzania has the potential to be the best in East Africa. Key investments like the one we are witnessing today are required in infrastructure and technology to enhance value and drive excellence.’
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TERMINAL NEWS l AFRICA & MIDDLE EAST
Additional land for storage terminal in Namibia port Additional land has been made available for a storage facility in Walvis Bay as work continues on another strategic storage facility.
S
peaking at the S&P Global Platts European Oil Storage Conference in Amsterdam, Elias Mwenyo, acting senior manager commercial at Namibian Ports Authority, said that the new liquid bulk terminal for oil should be commissioned by mid-2018.
The facility will increase the country’s security of fuel supply from 10 days to 40 and it will cater for the entire southern African market. Once complete, the facility will have total capacity of 75 million litres, which will be able to store various grades of diesel as well as unleaded petrol, heavy fuel oil and aviation fuel. He said that in addition, there is 82 hectares of available land for more storage and that they are ‘open to investment opportunities’. ‘There is the potential for an additional oil storage facility in Namibia,’ he added.
Plans to build new tank farm in East Africa
Prostar Capital buys Fujairah storage terminal
Plans are underway to turn a beach into a new oil storage terminal in Zanzibar.
Prostar Capital has reportedly purchased a storage terminal in Fujairah.
According to local media reports, a feasibility study has started, supported by the world bank, to develop a storage facility on 399.25 hectares of land for the distribution of fuel and natural gas. Ministry of land, water, energy and environment’s principle secretary Ali Halil Mirza is reported as saying: ‘Provisional assessment indicates that Mangapwani-Bumbwini coastal area is geographically suitable because of proximity to other ports in East African region and sufficient sea depth.’ The new site for the facility would include a gas depot. INDUSTRIAL
Reuters reports that the Australia-based fund has bought the Socar Aurora Fujairah Terminal, located off the Gulf of Oman. Reuters quotes that sources with knowledge of the matter did not say what the size of the deal was. The terminal, a joint venture between Azerbaijan’s state oil company, a Swiss commodity house and the government of Fujairah, has 14 storage tanks with a total capacity of 352,000 m3. Another 315,000 m3 of capacity is WWW.VG-INDU.NL currently being built.
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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
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Odfjell.com FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
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TERMINAL NEWS l THE AMERICAS
TERMINAL NEWS THE AMERICAS
Vitol and Harvest to develop crude oil terminal in Texas Harvest Pipeline Company and Vitol have signed an agreement to jointly develop a crude oil terminal in the Port of Corpus Christi.
T
he agreement is in response to increased demand for crude transportation from South Texas and the Permian Basin as well as to help satisfy the growing need for export capacity along the Texas Gulf Coast. The project will complement Harvest’s existing South Texas business by providing Eagle Ford barrels a new terminal connection from Harvest Midway junction. It will also provide a new waterborne outlet for the growing number of Permian barrels that are seeking access to international markets.
As more barrels flow to Corpus Christ from the Permian Basin, additional storage will be developed at the emerging Midway hub. Mark Couling, head of crude oil for Vitol, says: ‘Crude demand, particularly in emerging markets, continues to grow and US shale has an important role to play in satisfying this demand. Our new pipeline and terminal will facilitate the efficient delivery of US crude to global markets, thereby increasing marketing opportunities and optimising value for US producers.’
The companies have reached an agreement with the port for the location of the terminal development and dock access. They are also reviewing the option of constructing a private dock for the parties’ sole se at the oil terminal facility. Barrels will have access to the terminal via a new 16-inch lateral pipeline.
Crude demand continues to grow and US shale has an important role to play in satisfying this demand
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TERMINAL NEWS l THE AMERICAS
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
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FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
TERMINAL NEWS l THE AMERICAS
LBC Tank Terminals to build new Texas storage terminal LBC Tank Terminals will build and operate a new storage terminal in Freeport, Texas.
T
he operator has finalised agreements with MEGlobal Americas, which owns the land, to design, engineer, construct and operate the new facility, which will be adjacent to MEGlobal’s monoethylene glycol manufacturing plant and connected by pipeline. LBC Freeport Terminal will be an integrated part of MEGlobal’s supply chain, secured through a long-term contract and pipeline connection. The main products to be handled are monoethylene glycol and diethylene glycol. Work on the facility started in August 2017 and the facility is due to be operational during 2019. John Grimes, regional business president Americas for LBC, says: ‘With over 30 years of historical experience in handling glycols, this project opportunity fits our portfolio and investment risk models and is aligned with our business strategy to further optimise, build-out and expand our business. ‘This project very much fits our expertise in constructing, managing and operating chemical terminals and we look forward to a successful business partnership with MEGlobal.’
This project opportunity fits our portfolio models & is aligned with our business strategy to further optimise, build-out & expand our business
Corpus Christi expansion to be complete by 2020 An expansion of the Port of Corpus Christi, providing additional storage and dock capacity, is due to be completed by 2020. According to Reuters, Robert Barnes, senior vice president of commercial crude oil operations at Magellan Midstream Partners said at the Argus Americas Crude Summit that the additional docks and increase in ship draft will permit load rates exceeding 30,000 barrels per hour. The expansion will provide available space to build four private ship docks and add more than 10 million barrels of additional storage.
Plains proceeding with new Permian pipeline Plains All American Pipeline will proceed with the construction of a new pipeline system from the Permian Basin to the Corpus Christi/Ingleside area. Following a successful open season, the Cactus II Pipeline has received sufficient binding commitments to proceed. Permitting, rightof-way and procurement activities are underway and the pipeline is scheduled to be operations in the third quarter of 2019. The pipeline includes a combination of existing pipelines and two new pipelines. The first new pipeline will extend from Wink South to McCamey, Texas and the second pipeline will extend from McCamey to the Corpus Christi/Ingleside area. There has also be sufficient customer interest to conduct a second binding open season related to Cactus II Pipeline. Based on market demand, this second open season will include additional committed tariff rate structures, but is otherwise consistent with the terms of the first open season.
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
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TERMINAL NEWS l THE AMERICAS
Tallgrass announces significant storage terminal developments Tallgrass Energy Partners has announced its terminals business is making two acquisitions and several commercial developments to expand its range of services. Tallgrass Terminals plans to acquire a 51% membership interest in the Pawnee, Colorado crude oil terminal from Zenith Energy for $31 million. It is an injection point for the Tallgrass Pony Express Northeast Colorado Lateral with 300,000 barrels of storage and backed by minimum commitments of 90,000 barrels per day. This transaction is expected to close in the first quarter of 2018. Additionally, Tallgrass Terminals has acquired a 38% interest in Deeprock North, which owns a crude oil terminal facility for $19.5 million. Following the acquisition, Deeprock North was merged into Deeprock Development. Following this, it now owns a larger and more diverse terminalling complex with total storage capacity of four million barrels. Tallgrass owns 60% of the combined entity and retains significant strategic and commercial control.
In addition to these acquisitions, the company has made several commercial developments to expand the variety of services offered by Pony Express in key crude oil producing basins. It recently secured committed shipper contracts for crude oil transportation and expects record volume throughput in January. Also in January, the company expects to bring in service two new refinery connections.
Once complete the Pony Express will have six different supply sources and five different crude oil streams. David G. Dehaemers, president and CEO of Tallgrass Energy, says: ‘With news of increasing crude oil production in basins Pony Express serves, we’re even more confident that utilization of our pipeline will continue to increase in the future.’
Enterprise & Navigator to build ethylene export terminal
Gibson Energy to focus on oil infrastructure
Enterprise Products Partners and Navigator Holdings have formed a joint venture to build a new ethylene export facility along the US Gulf Coast.
Gibson Energy will divest several non-core businesses as part of plans transition to a focused oil infrastructure growth company.
The facility will have the capacity to export approximately one million tonnes of ethylene per year. Refrigerated storage for 30,000 tonnes of ethylene will be built on site and will provide the capability to load ethylene at rates of 1,000 tonnes per hour. The facilities are expected to be in service by the first quarter of 2020. The project is supported by long-term contacts with anchor customers that include US ethylene producer Flint Hills Resources and a major Japanese trading company. A.J ‘Jim’ Teague, CEO of Enterprise’s general partner, says: ‘This new ethylene export terminal will support the growing production of ethylene on the US Gulf Coast by providing access to international markets. ‘By 2021, the petrochemical industry is expected to expand aggregate ethylene production capacity in Texas and Louisiana by nearly 50% to approximately 90 billion pounds per year. The resulting rapid growth in the supply of US ethylene, combined with increased demand from international markets, like Asia, creates an ideal scenario in which markets abroad are able to diversify their supply by accessing cost-advantaged feedstocks made possible by the shale revolution in the US. ‘This export terminal will also offer diversification opportunities for domestic petrochemical producers who will not have to rely solely on the export market for derivatives like polyethylene.’ Enterprise is also developing a high-capacity ethylene salt dome storage facility at its complex in Mont Belvieu, Texas. This facility will have a capacity of 600 million pounds with an injection/withdrawal rate of 420,000 pounds per hour. The storage facility is expected to begin service in the first quarter of 12019 and will be able to enable connections to the eight ethylene pipelines within half a mile of the Enterprise ethylene storage system.
The key attributes of its strategy include having oil infrastructure comprise 85% of segment profit by the end of 2019, with the Hardisty and Edmonton terminals representing 75% of segment profit. It also aims to invest $!50 million to $200 million in growth capital pe4r yea, inclusive of the expected sanction of at least one to two tanks per year and have secure, growing dividend, underpinned by long-term contracts with investment grade counterparties at its terminal assets. Looking at its Canadian business strategy, the company expects that the long-term growth of oil sands production will continue to increase heavy oil flows into Hardisty, driving producer demand for additional tankage. Gibson plans to secure a significant proportion of incremental third-party tank build opportunities and could support the sanction of at least one to two tanks per year on a run-rate basis. Gibson also plans to grow its businesses that leverage the core terminal position, including additional pipeline connections and blending. It plans to expand its pipeline gathering network surrounding Hardisty in the Viking Basin by leveraging existing storage capabilities and access to egress pipelines at its terminals. Looking at its US business strategy, it will focus on the Permian and SCOOP/STACK basins and leverage its injection station position in these plays. It also plans to develop regional gathering pipelines to establish an additional growth platform.
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FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
TERMINAL NEWS l THE AMERICAS
NuStar announces expansion for Permian crude system NuStar Energy is expanding its Permian crude system with three projects to offer additional transportation capacity to shippers. The expansion number two will be capable of reaching multiple downstream markets through interconnects at Colorado City, Texas as crude oil throughput volumes to certain destinations approach the system’s capacity. The three projects will comprise Big Spring South Inlet, Colorado City Mainline Expansion and County Line Loop. Once completed, these projects are expected to provide 70,000 barrels per day of additional capacity on the Permian crude system. 90% of such additional capacity will be available for volume commitments during the open season. The bidding season, which opened on January 9 and will extend for at least 30 days, will give potential shippers the opportunity to make volume commitments and sign a transportation services agreement from designated origin point segments to NuStar’s Colorado City, Texas Terminal.
From Sensor to Boardroom.
Keyera starts new Canadian crude oil storage terminal Keyera has started operations at the Base Line Terminal, a new crude oil storage facility. The first four tanks are now in service at the facility adjacent to its Alberta EnviroFuels facility near Edmonton, Alberta. The remaining eight tanks are expected to be phased into service throughout 2018. It is a 50/50 joint venture with Kinder Morgan Canada and comprises 4.8 million barrels of crude oil storage capacity. An additional 1.8 million barrels of crude oil storage capacity may be added to the terminal depending on future customer demand. David Smith, Keyera’s president and CEO, says: ‘The Base Line Terminal is a great addition to our diversified portfolio of assets. ‘This new business provides Keyera with stable fee-for-service cash flows fully underpinned by several take-or-pay agreements up to 10 years in length with creditworthy counterparties.’
Kinder Morgan starts operations on Utopia Pipeline Kinder Morgan’s Utopia Pipeline, stretching from Ohio to Canada, has been put into service. The pipeline allows for product delivery of ethane from Harrison County, Ohio, to Windsor, Ontario, Canada. The pipeline system has an initial capacity of 50,000 barrels per day and can be expanded to more than 75,000 bpd. Don Lindley, president of natural gas liquids, products pipelines, says: ‘The project team, in coordination with local, state and federal agencies, has done a tremendous job developing a project that provides ethane takeaway capacity from the Utica shale to the growing petrochemical industry.’
Inventory management solutions of Endress+Hauser! Endress+Hauser inventory management solutions help you to reduce inventory costs, to improve customer satisfaction and to increase productivity. From easy monitoring of tanks and silos through to highly accurate tank gauging at tank farms and the automation of terminals, Endress+Hauser – being one of the leading manufacturers of instrumentation – offers, apart from all relevant measuring technologies, also the appropriate software packages to monitor your inventories. Endress+Hauser also supports you in the optimization of your supply chain with individual software solutions for your inventory management and the integration of this data into your company processes and your ERP system. www.endress.com/ims
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FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
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31.07.2015 07:17:02
TERMINAL NEWS l THE AMERICAS
Navigator to expand pipeline and storage assets Navigator Energy Services is expanding the Glass Mountain Pipeline system with additional pipeline and storage capacity. The company, in partnership with BlackRock Real Assets, bought the pipeline system for $600 million, which delivers crude to a one million barrel GMP owned storage facility at Cushing, Oklahoma. Navigator is expanding the system by constructing an additional 44 miles of pipeline further into the STACK play, and will also add an additional 250,000 barrels of storage capacity. The expansion is expected to be operational in February 2018. Once complete, the system will include pipeline capacity of 210,000 barrels of oil per day and 1.8 million barrels of storage.
The company says that in support of the significant volume growth within the STACK/Merge and Woodford resources plays, it plans to further expand the footprint and overall capacity of the system. Working with producer partners, substantial new gathering infrastructure is also anticipated. It adds: ‘The considerable scale of the existing GMP system and its ability to segregate multiple grades of crude allows Navigator to offer customers a fulsome, differentiated suite of services to transport and store crude oil.’
Zenith completes Arc Logistics acquisition
TANK AND TERMINAL DEMOLITION
SERVICE
Zenith Energy has completed the acquisition of Arc Logistics Partners, with some equity from Warburg Pincus and Kelso and other investors financing the deal.
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enith US received a line of equity of up to $625 million led by Warbug Pincus and Kelso, alongside management and other investors. Some of this is being used to finance the acquisition. Zenith plans to further develop Arc’s existing 21 terminals and focus on new developments throughout North America. Zenith International will continue to pursue further expansion opportunities in key international markets. Jeff Armstrong, CEO of Zenith, says: ‘We are very pleased to have successfully completed the acquisition of Arc Logistics, which gives us a strong foothold into the US terminaling market with 21 terminals in 12 states, providing critical services to a broad range of customers in key markets across the country.’
18
1968
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50
CELEB
BETTER SAFETY PERFORMANCE
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BETTER PRICES FOR SCRAP METAL
NATIONWIDE | SINCE 1968 www.midwest-steel.com PHONE (713) 991-7843
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
TERMINAL NEWS l THE AMERICAS
EMISSION CONTROL SOLUTIONS
SYMEX Company, in association with her global Partners, offers a wide scale of solutions to control and treat Emissions resulting from the Storage and Handling of volatile Petroleum-, Petrochemical- and Chemical Products. These Emissions may be explosive, toxic or odorous and may also contain components to be recovered and to be revaluated.
Examples of Products causing Emissions during Storage and Handling: • Light Hydrocarbon Products (Gasoline, Naphtha) • Crude Oil (Hydrocarbons, Hydrogen Sulphide, Thiols) • Bitumen (Paraffin’s, Particles) • Aromatics (Benzene, Toluene, Xylene) • Heavy Fuel Oils (BTX, H2S, Mercaptan) • Solvents (Alcohol, Acetone, MTBE, ETBE)
Examples of Products causing Emissions during Storage and Handling: • Swing Adsorption with Regeneration by Vacuum, Steam or Hot Nitrogen • Fixed Bed Physical – and Chemical Adsorption (including handling of Waste) • Thermal Oxidation • Solvent Scrubbing
Edisonweg 27, 3899AZ ZEEWOLDE, The Netherlands, +31 36 521 97 30, www.symex.nl info@symex.nl SYMEX Company is associated with KANON Loading Equipment BV from the Netherlands (with facilities in France, UK, USA and Malaysia) and2018 ROTAN GmbH from 19 FEBRUARY/MARCH VOLUME 14 ISSUE NO.1Germany (with facilities in many locations around Germany.
TERMINAL NEWS l THE AMERICAS
Contanda plans to expand Washington storage terminal Contanda has announced plans to expand its Grays Harbor facility to satisfy future demand for cleaner fuels storage.
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he facility will be expanded to store a portfolio of cleaner fuels including biodiesel, renewable diesel and ultra-low sulphur diesel. The facility, which Contanda has operated since 2009, handles methanol for industrial uses. In 2013, the company sought permits to expand the facility for other liquids, including crude oil. Ultimately, the permits were not granted, primarily because of opposition to the storage and handling of crude oil. The revised application, which comprises eight new storage tanks capable of storing 1.1 million barrels of liquid, is in response to customer demand and the strong future across the West Coast for biofuels and commodities such as ultra-low sulphur fuel. G.R ‘Jerry’ Cardillo, CEO of Contanda, says: The combination of deepadaptacio-anunci-tepsa-2.pdf 1 experienced 28/6/16 16:16 water shipping terminals, rail service, labour and available,
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land for development of facilities is what first attracted Contanda to the area in 2009. ‘These attributes continue to provide an attractive development option for us as we look to expand our West Coast terminal presence.’ Grays Harbor’s strategic location and infrastructure are attractive to the company and potential customers whose products originate in the Northwest and can travel by rail to the port to be transferred to deepwater marine vessels. Contanda is working with the City of Hoquiam and the Washington Department of Ecology on a streamlined permitting process, but does not have a timeline for the revised project.
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
TERMINAL NEWS l ASIA
TERMINAL NEWS ASIA
Companies agree to financing of Pengerang terminal PT2SB executives have signed a $1.25 billion senior financing agreement with a banking syndicate of nine international banks.
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he banks will be used to finance the PT2SB industrial terminal in Pengerang, Malaysia, a joint venture between Petronas, Dialog, the state of Johor and Vopak. Construction work on PT2SB started in early 2015 and it is scheduled for commissioning in various phases during the first half of 2019. It will predominantly serve the Petronas refinery petrochemicals integrated development project as its
main customer. It will have an initial storage capacity of 1.65 million m3 for crude, refined products, petrochemical products and LPG. The marine infrastructure includes 12 berths and the draft of 24 meters can also accommodate VLCCs. The project’s costs of $1.6 billion will be 20% funded with equity contributions by the shareholders and 80% is provided in the form of project financing through the banking syndicate.
Oiltanking Odfjell Terminal Singapore changes shareholders One of the ultimate shareholders of Oiltanking Odfjell Terminal Singapore has completed the transfer of its shares in the facility to an infrastructure fund managed by Macquarie Infrastructure and Real Assets (MIRA). Odfjell Terminals has completed the share transfers following the announcement in May last year of its intent to sell. Following the transfer, the terminal’s name has been changed to Oiltanking Singapore Chemical Storage. Both Oiltanking and MIRA each have a 50% shareholding in the facility. The terminal, on Jurong Island, offers 82 tanks with capacities ranging from 800 m3 to 18,000 m3, making up a total capacity of 402,000 m3.
Strategically located petroleum bulk storage facility. The only deep water platform (64’ operating draft) on the U.S. East Coast
• 20 storage tanks 80 miles East of New York Harbor
• Total Storage Capacity of 5 Million Barrels
• The only deep-water loading/unloading platform on the U.S. East Coast.
• Easy reloading for distribution of product to U.S., Canada and Europe
United Riverhead Terminal, Inc. (631) 284-2010
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
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TERMINAL NEWS l EUROPE
TERMINAL NEWS EUROPE Glencore completes sale of HG Storage stake Glencore has completed the sale of a 51% interest in HG Storage International (HGSI) to HNA Innovation Finance Group. HGSI is a new entity that has consolidated Glencore’s petroleum products storage and logistics businesses into a global portfolio of high-calibre assets, located in strategic trading hubs across Europe, Africa, the Middle East and the Americas. Glencore and HNA has also interested into a second agreement, whereby three of the original transaction assets located in the US will be transferred into HGSI in 2018. Of the original purchase price of $775 million, $579 million was closed at the end of December. HGSI plans to expand its footprint globally through acquisitions and organic growth supported by its shareholders.
EU to invest in Croatian LNG terminal The EU will invest €101.4 million in the construction of a LNG terminal in Krk, Croatia.
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he €101.4 million grant will contribute towards the overall estimated costs of €383.6 million. The LNG terminal will first operate as an offshore floating storage and regasification unit with a yearly capacity of at least two billion m3. It 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 initiative. Commissioner Miguel Arias Cañete says: ‘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.’
Zenith acquires storage terminal assets from Shell Zenith Energy has acquired a liquids storage terminal facility in Hamburg, Germany from Shell. The facility, located on 55 hectares of land in the Port of Hamburg, serves as a refined product import and blending terminal in North Germany. It has an expected storage capacity of over 480,000 m3 for petrol, diesel and jet fuel. It also has inbound and outbound ocean vessel, barge, rail and truck and pipeline connectivity. Following the transfer of ownership, Shell will remain a significant customer of the terminal. The transaction is expected to close in the first half of 2018. Jeffrey Armstrong, CEO of Zenith, says: ‘This is a natural progression in our growth strategy and underscores our commitment to expand into key European markets. We are excited to be working with Shell.’ This acquisition represents Zenith’s third terminal in Europe, with its other assets in Ireland and Amsterdam.
Visit us at Tank Storage in Rotterdam on stand Nr. J5! 22
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
TERMINAL NEWS l EUROPE
Vopak, Oiltanking & Gasunie to build German LNG terminal
Gasunie, Vopak and Oiltanking are creating a joint venture to build, own and operate an LNG import storage terminal in northern Germany.
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he consortium are in the process of establishing the JV German LNG Terminal, which will provide LNG distribution services. To attract interest, and to establish a detailed insight in customer demand, an open season has been launched. The terminal offers the opportunity to further diversify Germany’s sources of gas supply and facilitates access to LNG as an alternative, low emission fuel for ships and trucks. The terminal is currently focusing on Brunsbüttel, which benefits from its proximity to the port of Hamburg and other industrial companies in the region. The start of the open season, on January 17, marks an important milestone in the development of Germany’s first LNG terminal. The facility offers discharge and loading of LNG ships, storage of LNG, regasification and send out into the natural gas network and LNG distribution via trucks and barges.
Ineos launches six oil & gas businesses Ineos has launched six new oil and gas businesses covering shale gas as well as assets in Denmark, Norway and the UK. The announcement follows the completion of a number of North Sea oil and gas acquisitions that began in 015. In addition to the acquisition of DEA UK and Fairfield Energy Assets, it has also acquired DONG Energy’s Oil and Gas business, the Forties Pipeline System from BP, significant onshore and offshore exploration licenses and expanded its own upstream services business. Ineos Oil and Gas is led by Geir Tuft as CEO and comprises: • Ineos Oil and Gas Denmark – operated and non-operated oil and gas assets in Denmark • Ineos Oil and Gas Norway • Ineos Oil and Gas UK – the Ineos Breagh assets and all assets mainly in the West of Shetlands • Ineos FPS – the Forties Pipeline System, the Kinneil terminal and gas processing plant, the Dalmeny terminal, sites at Aberdeen, the Forties Unity Platform and associated infrastructure • Ineos Shale – focused on onshore gas development • Ineos Upstream Services – a new venture that will provide a broad range of high quality upstream services to Ineos and the wider upstream market. Tuft says: ‘The North Sea continues to present new opportunities for Ineos. These six units will allow us to run out businesses even more effectively than before.’
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FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
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INCIDENT REPORT
INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 8/1/2018
6/1/18
Eagan, Minnesota
Off the coast of China, near Shanghai
Magellan Midstream Partners Third party excavation equipment caused the release of between 300 to 500 barrels of petrol on a section of Magellan’s Rosemount to Minneapolis pipeline. Several roads in the immediate area were closed after an unaffiliated contractor using mechanised drilling equipment struck the pipeline. No one was injured in the incident. Magellan representatives, emergency responders, regulators and environmental specialists assisted with the clean up and following repairs, the pipeline quickly re-opened.
Sanchi, CF Crystal Two tankers collided 160 nautical miles off the coast of China. The Iranian Sanchi, which was carrying 136,000 tonnes of light crude oil, collided with Hong-Kong registered CF Crystal. The Sanchi sank on January 14 after burning for several days, and its entire crew of 30 Iranians and two Bangladeshis are presumed dead. As a result of a large hole in the tanker’s hull, fuel has spilled into the ocean, with an estimated surface area of 36 square miles. More than 70 vessels have been involved in clean-up and monitoring efforts and the maritime authorities of China, Panama, Iran and Hong Kong have agreed to jointly investigate the collision.
4/1/18
4/2/18
Ascension Parish, Louisiana
Bay Minette, Alabama
International-Matex Tank Terminals
McPherson Oil Products
Natural gas leaked from an industrial pipeline and ignited, causing a fire. The pipeline, which suffered a rupture that resulted in the natural gas leak, transports products to the chemical storage facility. The pipeline supply was shut off as the fire was quickly contained and extinguished. The remaining leaked natural gas was then allowed to burn off. No one was injured in the incident, and an investigation has been launched to establish the cause.
An 8,000 gallon tank holding about 4,000 gallons of oil product exploded and caught fire. The force of the explosion cause the tank roof to blow off. No one was injured by the explosion and some residents reported that their homes shook following the blast. Firefighters spent 10 minutes extinguishing the flames and the fire was contained to the single tank. An investigation has been launched into the cause of the incident.
Asheville, North Carolina
14/1/18
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Mountain Energy Bulk Fuel Facility
At least 1,000 gallons of petroleum spilled into a river from an aboveground storage tank. Firefighters quickly fixed the hole and placed salvage drums under the tank to contain the flow.
FEBRUARY/MARCH 2018 VOLUME 14 ISSUE NO.1
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