DECEMBER 18/JANUARY 19 Volume 14 Issue No.6
THE STORAGE OUTLOOK
Five international operators review developments from 2018 and exclusively share what they think lies ahead for the market in 2019
A GLOBAL STORAGE HUB NETWORK Find out how GPS Group plans to become a leading global independent hydrocarbon & chemical storage company
REGIONAL FOCUS: AFRICA
The voice of the storage terminal industry
PROFILE l XXXXXX XXXXXX
versatile. Always a leading innovator, ROSEN not only supplies pipeline customers with the latest diagnostic and system integrity technologies but also offers flexible solutions and all-round support for plants & terminals. www.rosen-group.com
2
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
CONTENTS
Contents
28
News TERMINAL NEWS 09 Europe 13
Africa & Middle East
16
The Americas
20 Asia 22 Incident report
30
Storage in Africa 24
Tank terminal update: Africa
44 Growing to meet Ghana’s midstream needs 46 Bridging Africa’s infrastructure gap
Profiles 28
A global storage hub network
Market analysis 30
Oil price ‘collapse’ brings 2018 to a close
32 A different energy system 35 The economics of IMO 2020
38 DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
38 Are energy companies prepared for a demand driven petrochemical market? 41 IFLEXX: standardised data communication in the downstream oil and gas sector 01
CONTENTS
90
Contents Terminal outlook 53
Five global storage operators looks back at developments from 2018 and exclusively share their thoughts on what lies ahead for 2019…
Technical features 61
Technical news
70 Safety at the touch of a button 72
Protecting storage while improving system uptime
75
Process safety & operational risk management: time for a digital makeover
79
Managing the storage tank lifecycle
58
80 Coriolis mass flowmeters – what’s the next big thing? 83
Cyber security incidents & their HSE impact on tank terminals
85
Filling the missing safety gap in fire protection
88
Electrostatic ignition of toluene vapours during vacuuming truck operation
Events 58
Seeing out the year in style
90 From Russia with love… 93 A global energy transition
83 02
95 Consolidating the Mediterranean storage potential 96 Advertisers’ index 97
Upcoming events DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
CONTENTS
Swiss Fire Protection Research & Development AG
Swiss Fire Protection Research & Development AG, based in Sarnen, Switzerland, has produced the revolutionary Pressurized Instant Foam System, a Foam-Based Fire Extinguishing Technology that is on track to become the new norm of fire extinguishment in the Oil, Pharmaceutical, Chemical & Vegetable-Oil Industries. Our company is looking for either (1) a buyer/licensee or (2) a consulting firm to assist in the sale of our technology.
Our goal is to sell all patents and know-how on either a worldwide or regional basis.
Over the past 10 years, the earlier versions of the Pressurized Instant Foam SystemTM has been installed worldwide by companies including:
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
03
CONTRIBUTORS
Contributors
DECEMBER 18/JANUARY 19 Volume 14 Issue No.6
THE STORAGE OUTLOOK
Five international operators review developments from 2018 and exclusively share what they think lies ahead for the market in 2019
DECEMBER 18/JANUARY 19 Volume 14 Issue No.6
A GLOBAL STORAGE HUB NETWORK Find out how GPS Group plans to become a leading global independent hydrocarbon & chemical storage company
REGIONAL FOCUS: AFRICA
The voice of the storage terminal industry
Front cover courtesy of Navigator Terminals
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
HEAD OF MARKETING Jo Mayer t: +44 (0)20 3196 4365 e: jo.mayer@easyfairs.com
DATABASE MANAGER Alison Church t: +44 (0)20 3196 4305 e: alison.church@easyfairs.com
SUBSCRIPTION MANAGER John Darke t: +44 (0)20 3196 4383 e: john.darke@easyfairs.com
CEO EASYFAIRS UK & GLOBAL Matt Benyon t: +44 (0)20 3196 4310 e: matt.benyon@easyfairs.com
CONTACT
SUBSCRIPTION RATES
t: +44 (0)20 3196 4300 f: +44 (0) 20 8892 1929 e: info@tankstoragemag.com w: www.tankstoragemag.com
A one-year, 7-issue subscription costs €210. Individual
Easyfairs 2nd Floor, Regal House 70 London Road Twickenham TW1 3QS United Kingdom
CONNECT WITH US
ISSN 1750-841X
back issues can be purchased at a cost of €45 each.
@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.
04
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
CONTRIBUTORS
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
05
COMMENT
The end of a rollercoaster year
I
t certainly has been a year of highs and lows for global oil markets as geopolitics, the global economy and surging production output take their toll. Especially in the latter part of 2018, oil prices as well as supply and demand balances have been particularly volatile with prices plummeting to just over $58 a barrel in November and inventory balances in many key regions experiencing a growing surplus. As we all know the market is sensitive to developments taking place in the global political and economic sphere and with the imposition of sanctions against Iran, the battle over a Brexit deal between the UK and Europe as well as trade wars between the US and China, there has been plenty affecting the market. However, in a bid to bring a sense of stability and balance back to oil markets, OPEC and non-OPEC ministers agreed earlier in December to cut output by 1.2 million b/d. Time will tell if this action will have the desired effect. And this rollercoaster looks set to continue into 2019, with industry experts agreeing that oil markets will remain in a state of uncertainty as energy markets themselves continue their transformation. In this edition of Tank Storage Magazine, we take a look back at how these events and developments in 2018 have affected the oil & gas sector and what 2019 may hold. We also provide in-depth analysis on how a different kind of energy system is emerging thanks to upheavals in oil production, the growth
06
of electrification and the expansion of renewable forms of fuel. The end of the year is always a great time to reflect on developments over the last 12 months and prepare for the all the promise of a fresh new year. In our 2019 terminal outlook, operators Koole Terminals, Stolthaven Terminals, Inter Terminals, CLH Group and Horizon Terminals look back at events from 2018 and share exclusively with Tank Storage Magazine their thoughts for 2019. This is in addition to an exclusive interview with Global Petro Storage Group about its ambition to become a leading hydrocarbon and chemical storage business. CEO Eric Arnold explains more about the company’s assets in the Middle East, Europe and Asia as well as its future growth plans. We also find out more about Quantum Terminal Groups’ plans for new oil and LPG storage facilities in Ghana as growing fuel demand in the country necessitates the need for more storage infrastructure. 2019 promises to be an exciting one for the team as we prepare to celebrate the magazine’s 15th anniversary at StocExpo Europe in March. We look forward to celebrating with many of you there! With best wishes and a prosperous new year,
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
COMMENT
VALUE – Over 95% of AT&V’s 3,500 projects were awarded on lump sum price with industry leading schedules. From gas to cryogenic storage, contact AT&V to incorporate All The Value in your next project.
© 2019 AT&V
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
07
TERMINAL NEWS
All the latest terminal storage news from around the globe
20 Dialog Group considers further investments in Pengerang complex
09 Inter Terminals acquires NuStar’s European storage terminal business
17 Port of Corpus Christi & Carlyle to build export storage terminal
EUROPE
the americas
09 Inter Terminals acquires NuStar’s European storage terminal
15 Total & Sempra Energy sign MoU for LNG export projects
business
10 Vopak to expand gas storage in South Africa & The Netherlands
17 Gibson Energy to expand storage capacity at Hardisty Terminal
Vitol & IFM to acquire Buckeye’s stake in VTTI
Odfjell reports stable financials
Saras to build new bunkering terminal
18 I Squared commits $500 million toward new Delaware Basin
Botlek Tank Terminal prepares for further storage expansion
midstream partnership
Tallgrass Energy announces Pony Express pipeline expansion
Buckeye to sell pipeline & terminal assets for $450 million
Port of Corpus Christi & Carlyle to build export storage terminal
11 Vopak to expand gas storage in South Africa & The Netherlands
Vitol & IFM to acquire Buckeye’s stake in VTTI
Africa & middle east
Asia 20 Total & Adani Group in agreement for Indian LNG terminals
13 Saudi Aramco & BAPCO commission crude oil pipeline
BP in JV over New Zealand terminals
Dialog Group considers further investments in Pengerang
South Africa storage terminal project progresses
complex 14 GPS, Innova & Chemie Tech to invest in UAE storage terminal
21 GPS & Equinor to develop South East Asian LPG storage
terminal
ADNOC signs MoU to store crude oil at Indian storage facility
Visit www.tankstoragemag.com for the latest news and developments
CONNECT WITH US 08
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
TERMINAL NEWS l EUROPE
TERMINAL NEWS EUROPE
Inter Terminals acquires NuStar’s European storage terminal business Inter Terminals has acquired all of NuStar Energy’s European bulk liquid storage business for $270 million.
P
arent company Inter Pipeline says that Inter Terminals has acquired 100% of the issued share capital of the business. The transaction closed in the fourth quarter of 2018. NuStar Europe comprises seven coastal terminals totalling 9.1 million barrels of storage. One is located in Amsterdam with the remaining facilities located in the UK near London, Runcorn, Eastham, Grangemouth, Clydebank and Belfast. The investment includes 321 tanks, cost-of-service and fee-based storage business primarily focused on inland distribution and blending of petroleum & petrochemical products, historically strong utilisation rates as well as stable cash flows. The transaction will increase Inter Terminal’s storage capacity by 33% to 37 million barrels and the company says there is strong integration potential with Inter Terminal’s existing terminals in the UK, resulting in enhanced product storage and custom blending solutions for customers. NuStar’s European terminals operate as storage and blending hubs for the transhipment of refined products as well as the inland distribution of petroleum and petrochemical products. They are well positioned to facilitate the regional movement of products driven by the significant imbalances that exist between supply and sources and demand locations. In the UK, the 1.9 million-barrel Grays terminal is a key regional supply point, responsible for handling approximately 17 million barrels of refined products per year and provides cost effective access to London’s fuel distribution network. The 3.8 million-barrel facility in Amsterdam, Netherlands plays a key role in the Port of Amsterdam, comprising approximately 10% of independent storage capacity. The terminal provides gasoline, gas oil and fuel oil storage, and blending services, including those required to produce IMO 2020 compliant marine fuels. The smaller terminals in Belfast, Eastham, Grangemouth, Runcorn and Clydebank in the UK primarily support the distribution of petrochemicals, gasoline, diesel and sulphur to regional demand centres. Christian Bayle, Inter Pipeline’s president & CEO, says: ‘The addition of NuStar Europe is an exciting step forward for our European bulk liquid storage business. ‘The acquisition materially increases our overall storage capacity and establishes Inter Terminals as the largest independent storage operator in the UK. Furthermore, the transaction provides an attractive entry into the Port of Amsterdam. The port is the world’s largest gasoline blending hub and has experienced significant storage growth over the years.’
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
Customised tank mixing systems for storage tanks • • • • • • • •
no maintenance in the tank complete mixing of tank content low investment costs low energy input no unmixed dead zones wear-resistant operation no sealing problems optimisation with (CFD) Computational Fluid Dynamics
www.koerting.de +49 511 2129-221 · st@koerting.de
09
TERMINAL NEWS l EUROPE
Vopak to expand gas storage in South Africa & The Netherlands Vopak has announced plans to expand its gas storage capabilities, with a new LPG terminal in South Africa as well as expanding its terminal in the Netherlands.
T
he operator and its partner Retile will invest in a new LPG import and distribution terminal with an initial capacity of 15,000 m3 in Richards Bay, South Africa. This investment facilitates further imports of a cleaner energy source into South Africa. The additional capacity is expected to be commissioned in the second quarter of 2020. Vopak will also expand it wholly-owned gas terminal in Vlissingen, the Netherlands. A total of 9,200 m3 of capacity will be built for LPG and chemical gases to serve the northwest European market. The additional capacity is also expected to be commissioned in the second quarter of 2020.
Vitol & IFM to acquire Buckeye’s stake in VTTI Vitol Investment Partnership and IFM Investors will acquire Buckeye Partners’ 50% equity interest in VTTI. Once complete, VTTI will be owned 50% by IFM, a global institutional funds manager, and 50% by Vitol and Vitol Investment Partnership. It will continue to be managed by an independent management team led by CEO Rob Nijst. The transaction is subject to certain conditions precedent and was expected to close by year end.
Odfjell reports stable financials Odfjell has reported stable financial results for the third quarter of 2019, with an EBITDA of $32 million. The company’s terminals segment reported an EBITDA of $4 million compared to $9 million in the second quarter. It reported losses of $16 million related to the sale of the Rotterdam terminal that included currency translation and tax losses in addition to transaction costs. The segment’s financials were impacted by the fuel oil spill in the Rotterdam harbour, interrupting storage and distillation business due to the closure of the port. The sale of the terminal also led to fewer days of income contribution for the terminal. The result was also impacted by higher G&A related to the restructuring of the Odfjell Terminals organisation. The company’s US terminals showed a stable EBITDA of $4.4 million compared to the previous quarter thanks to strong market demand and high activity in the country.
Saras to build new bunkering terminal Saras has announced plans to build a marine bunkering terminal and will market a new, cleaner marine fuel ahead of the IMO 2020 regulation. The new terminal will be built at the Italian refiners’ Sardinia plant. Speaking to Reuters CEO Dario Scaffardi says that by producing the new fuel, the company has a competitive advantage over others as the low sulphur specs are difficult to achieve for technical reasons. He says: ‘With a small investment, we will have bunkering infrastructure and a lightering vessel and start selling local fuels to expand the market.’ The plant will initially produce 500,000 to 600,000 tonnes of ultra-low sulphur fuel oil per year.
Botlek Tank Terminal prepares for further storage expansion HES Botlek Tank Terminal is preparing to expand storage capacity at the facility with an addition 20,000 m3 of capacity. The six tanks for biofuels are backed by multi-year customer contracts. Additionally, the facility has completed the second phase of its expansion project, which doubles its liquid bulk capacity to 490,000 m3.
10
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
TERMINAL NEWS l EUROPE
Odfjell restructures & takes stronger role in terminals
Gasunie’s hydrogen pipeline brought into operation Gasunie’s hydrogen pipeline between Dow and Yara has been brought into operation. The pipeline from Terneuzen and Sluiskil represents the first time that an existing main gas transported pipeline has been modified for hydrogen transport. Hydrogen for industrial use will be exchanged via the pipeline, which is no longer being used to transport gas.
The 12km pipeline was the subject of agreements signed in March between Dow, Yara, ICL-IP and Gasunie Waterstof Services. In the summer of 2017 connections were made at Dow and Yara and the gas transport pipeline was modified at a few
Odfell Terminals has been converted to a 100% Odfjell SE controlled holding company as part of a company restructure that strengthens its role in its terminal division.
points making it suitable for transporting hydrogen. The pipeline was then filled with hydrogen. It is now being used commercially for transporting more than four kilotons of hydrogen per year. Transporting hydrogen to ICL-IP at a later stage is also part of the plan.
TANK AND TERMINAL DEMOLITION
SERVICE
T
his follows Lindsay Goldberg’s departure as a joint venture partner for Odfjell Terminals. The restructure strengthens the company’s foothold in tank storage with this holding company and by increasing its ownership in Antwerp’s Noord Natie Odfjell Terminals. As part of Lindsay Goldberg’s announced exit plans, it has converted its shares in Odfjell Terminals into 49% direct ownership in two separate joint ventures owning the terminals in the US and Asia. With Antwerp being an important port for chemicals in the EU, Odfjell takes another strategic step. The ownership share increases its stake from 12.75% to 25% in Noord Natie, and this stake is wholly owned by the holding company. It will be the management company of Odfjell’s global terminal assets and will be the operating partner of the joint ventures in the US and Asia. Frank Erkelens, CEO of Odfjell Terminals, says: ‘After our recent divestments we can now fully focus o growing our footprint of terminals as well as on the synergies with Odfjell Tankers. We see great potential for the terminals in our portfolio.’
1968
G RATIN
50
CELEB
BETTER SAFETY PERFORMANCE
YEARS 2018
BETTER PRICES FOR SCRAP METAL
NATIONWIDE | SINCE 1968 www.midwest-steel.com PHONE (713) 991-7843
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
11
TERMINAL NEWS l ASIA
12
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
TERMINAL NEWS l AFRICA & MIDDLE EAST
TERMINAL NEWS AFRICA & MIDDLE EAST
Saudi Aramco & BAPCO commission crude oil pipeline Saudi Aramco and the Bahrain Petroleum Company have commissioned the AB-4 crude oil pipeline.
T
he pipeline is part of plans to meet the Kingdom of Bahrain’s growing energy demand and can transport up to 350,000 barrels per day of crude oil. The 112-kilometer-long pipeline originates from Saudi Aramco’s Abqaiq Plants and terminates at the BAPCO refinery in Bahrain. The pipeline consists of three segments, a 42km onshore Saudi segment, a 28km Bahrain onshore segment and a 42km offshore segment. Abdullah Mansour, acting executive head of pipelines distribution and terminals at Saudi Aramco, says: ‘The commissioning of AB-4 pipeline is another chapter in the special relationship between Saudi Aramco and BAPCO in several aspects including the energy sector that has flourished for more than 73 years and beyond.’
The commissioning of AB-4 pipeline is another chapter in the special relationship between Saudi Aramco and BAPCO
South Africa storage terminal project progresses Transnet National Ports Authority has started work on the second phase of a new liquid bulk facility project. During an update to stakeholders, executives confirmed that phase one of the infrastructure needed to service the site of the facility, which will be developed and operated by Oiltanking Grindrod Calulo Holdings, is now complete. This includes a new access road as well as detailed design of the new port entrance plaza and the new main access road, including the pipeline servitude that will form the link between the new facility and the port. Phase two comprises landside development, forming the link between the tank farm and the berth. The port authority will provide infrastructure for the new storage terminal by equipping a berth to function as a liquid bulk berth. The concept engineering design and the relevant surveys have been completed and construction has started. The facility will initially have 200,000 m3 of storage, with a final total capacity of 790,000 m3. The planned commissioning is at the end of 2020. Phase one will cater for dedicated jetty pipelines, bulk storage for up to 200,000 m3, road loading with a vapour recovery unit as well as firefighting facilities and site drainage facilities. Provision has also been made for LPG storage. In its update TNPA said that the facility has the potential to establish itself as a global transhipment and trading hub for West and East Africa. It will also reduce reliance on the Port of Durban for transhipments to coastal ports. It is anticipated that the first phase of the project will take two years to complete and that the terminal at the Port of Ngqura will be operational by November 2020.
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
13
TERMINAL NEWS l AFRICA & MIDDLE EAST
GPS, Innova & Chemie Tech to invest in UAE storage terminal
ADNOC signs MoU to store crude oil at Indian storage facility
Global Petro Storage, Innova Refining Industries and Chemie Tech will invest in a greenfield terminal project in the Port of Hamriyah in the UAE.
The MoU stipulates that ADNOC could store crude in two compartments at Pardur, which has a total storage capacity of 17 million barrels. The memorandum follows the arrival of the final shipment of the initial delivery of ADNOC crude to be stored in another ISPRL underground facility at Mangalore, which will store 5.86 million barrels of ADNOC crude oil. ADNOC is the only foreign oil and gas company so far to invest by way of crude oil in Indian’s strategic petroleum reserves programme. H.E. Dr Al Jaber, ADNOC Group CEO, says: ‘India is an important oil market and this agreement underscores the strategic energy partnership between the UAE and India that leverages the UAE and ADNOC’s expertise and oil resources. ‘It is our firm hope that we will be able to convert this framework agreement into
T
he terminal, underpinned by long-term commitments, will provide services for industrial reprocessing of waste oils, trading, import and bunkering. Construction works started in October 2018 and the facility is due to be complete by late-2019. This is GPS’s first investment in the Middle East, which the company says is a key strategic hub that it plans to expand around. GPS will hold the majority in the three-party joint venture company, GPS Innova, which will develop, own and operate the hydrocarbon storage terminal according to international standards. Read our exclusive interview with GPS Group on page 28 & 29.
ADNOC has signed a MoU with the Indian Strategic Petroleum Reserves to examine the possibility of storing ADNOC crude oil at its underground oil storage facility in Karnataka, India. a new mutually beneficial partnership that will create opportunities for ADNOC to increase deliveries of high-quality crude oil to India’s expanding energy market and helping India meet its growing energy demand and safeguard its energy security.’ H.E. Dharmendra Pradhan, minister of petroleum and natural gas skill development and entrepreneurship, Government of India, adds: ‘This MoU will allow ISPRL to explore, with ADNOC, opportunities related to the possible storage of ADNOC crude at Padur, which would help to significantly strengthen the country’s strategic petroleum reserves. This agreement reflects the strong bonds of cooperation between India and the UAE and provide a foundation for strengthening and expanding our strategic energy relationship.’ India is over 82% dependent on imports to meet its crude oil needs, around 8% of which is supplied by the UAE.
WORLDWIDE D E L I V E RY OF ENGINEERED TANK PRODUCTS
14
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
TERMINAL NEWS l AFRICA & MIDDLE EAST
SAVE THE DATE
JUN E 3 - 5
ILTA 2019 Join more than 4,500 terminal industry professionals
AT THE PREMIER ANNUAL EVENT for liquid terminal owners and aboveground storage tank operators.
39th ANNUAL
I N T E R NAT I O NA L O P E R AT I NG CONFERENCE & TRADE SHOW HOUSTON, TEXAS M A R R I O TT MA R Q U I S H O U S T O N G E O R G E R . B R O W N C O N V E N TI O N C E NT ER
WWW.ILTA.ORG/AOCTS DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
15
TERMINAL NEWS l AFRICA & MIDDLE EAST
TERMINAL NEWS THE AMERICAS
Total & Sempra Energy sign MoU for LNG export projects Sempra Energy and Total have signed an MoU that details the framework for co-operator in the development of North American LNG export projects.
T
he scope of the MoU covers continuing the development of the Cameron LNG liquefactionexport project in Louisiana and Energía Costa Azul liquefaction-export project in Baja California, Mexico. The MoU between the two companies envisages Total potentially contracting for up to nine million tonnes per annum of LNG offtake across Sempra Energy’s LNG export development projects on the US Gulf Coast and west coast of North America, specifically Cameron LNG Phase 2 and Energia Costa Azul LNG. Total may also acquire an equity interest in ECA LNG. Jeffrey Martin, CEO of Sempra Energy, says: ‘The US is increasing its global leadership position in the production of oil and natural gas. In large measure, the next step in fulfilling our country’s energy potential is the development of critical export infrastructure for LNG. ‘Sempra Energy has a long-term goal of developing more than 45 million tonnes per annum of LNG export capacity in North America. That is why our relationship with Total is so important. We plan to leverage the competitive strengths of both companies to accelerate
development of North American LNG exports to global markets.’ Patrick Pouyanné, chairman and CEO of Total, adds: ‘We are pleased to collaborate with Sempra Energy and the other Cameron LNG co-owners to extend the Cameron LNG project and to further enhance its competitiveness, but also participate in the development of export capacity on the west coast of Mexico, which will benefit from synergies with existing infrastructure and from a significant shipping cost advantages for customers in Asia.’ The $10 billion phase 1 of the Cameron LNG JV liquefaction-export projects includes three liquefaction trains with 14 Mtpa of export capacity under construction in Louisiana. Phase 2 of the project comprises up to two additional liquefaction trains and up to two additional LNG storage tanks with nine Mtpa of capacity. ECA phase 1 is a one-train facility with an expected total export capacity of 2.5 Mtpa, utilising the existing LNG receipt terminal’s tanks, loading arms and berth. ECA phase 2 is expected to have additional export capacity of 12 Mtpa of LNG.
The US is increasing its global leadership position in the production of oil and natural gas & the next step in fulfilling its nergy potential is the development of critical export infrastructure for LNG
Buckeye to sell pipeline & terminal assets for $450 million Buckeye will sell a package of non-integrated domestic pipeline & terminal assets in locations across the US for $450 million. This is in addition to the company selling its entire equity stake in VTTI for cash proceeds of $975 million to Vitol Investment Partnership and IFM Investors. These actions are the result of a strategic review that the company says will maintain its investment grade credit rating by reducing leverage, provide increased financial flexibility and reallocate capital to higher return growth opportunities across its remaining assets. The assets include: a jet fuel pipeline from Port Everglades, Florida to the Ft. Lauderdale and Miami, Florida airports, pipelines and terminal facilities serving the Reno, Nevada; San Diego, California and Memphis, Tennessee airports, and refined petroleum products terminals in Sacramento and Stockton, California. Clark C. Smith, chairman, president and CEO says: ‘I am confident that the actions taken as a result of our strategic review will not only strength our balance sheet and solidify our
16
investment grade rating but also meaningfully improve distribution coverage. ‘We are now well positioned to fund our annual growth capital spend without accessing the public equity markets. In addition, the sales of our interest in VTTI and the domestic asset package allow us to reallocate available growth capital to higher return initiatives across our domestic assets, particularly the opportunities we are actively pursuing along the US Gulf Coast. ‘Our improved financial flexibility along with our remaining portfolio of pipeline and terminal assets and attractive growth opportunities are expected to provide solid long-term returns for our unitholders through all business cycles.’ In its third quarter financials, the company reported a net loss of $745.8 million compared to the net income attributable for Buckeye’s unitholders for the same period in 2017 of $116.2 million. The third quarter was negatively impacted by
a $537.0 million non-cash goodwill impairment charge, related primarily to its Caribbean assets, following an interim assessment of the recoverability of goodwill that was initiated in conjunction with the completion of the strategic review. Smith adds: ‘Buckeye’s third quarter results fell short of prior year largely as a result of continued weakness in segregated storage, particularly in the Caribbean. ‘Our domestic pipelines and terminals segment saw strong demand across the markets in which we operate, which drove increased pipeline and terminalling throughput volumes and increased revenues.’ The company’s global marine terminals segment continued to benefit from strong operating performance from Buckeye Texas Partners, partially offsetting the continued impact of challenging market conditions in the segregated storage market, which drove lower utilisation and rates in this segment.
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
TERMINAL NEWS l THE AMERICAS
Gibson Energy to expand storage capacity at Hardisty Terminal
PRECISE CONTROL
Gibson Energy has announced plans to increase storage capacity at its Hardisty Terminal by one million barrels, underpinned by a long-term agreement.
T
he construction of two new 500,000-barrel tanks, underpinned by a long-term agreement with an investment grade, senior oil sands customer, represents the third phase of development at the Top of the Hill portion of the Hardisty terminal. This third phase, which will leverage certain infrastructure built as part of the prior phases, is expected to be in service in the first quarter of 2020. The three phases currently under construction will add seven new tanks, representing an incremental 3.1 million barrels of storage and a 35% expansion of the Hardisty Terminal. Steve Spaulding, president and CEO, says: ‘With nearly a half-billion dollars of sanctioned growth capital relative to an annual target of $150 to $200 million, Gibson has secured the projects required to exceed our 10% growth target through to 2020.’
Port of Corpus Christi & Carlyle to build export storage terminal The Carlyle Group and the Port of Corpus Christi have agreed to build a major crude oil export terminal on Harbour Island. The facility will create the first onshore location in the US Gulf capable of servicing fully-laden VLCCs and it will connect growing crude oil production in the US with global markets VLCC access at the Port of Corpus Christi will open the global markets for US oil producers, pipelines, their supply chains and customers. As part of the agreement, the port will work exclusively with Carlyle to bring together world-class oil producers, marketers, pipeline operators and marine terminal operators to ensure a significant portion of the new oil production in Texas will have a reliable gateway to international markets. Carlyle will lead the construction and operation of the terminal on an exclusive basis. It will also arrange for a private funding solution for a dredging project to bring fully-laden VLCCs to Harbour Island. The terminal, which will include the development of at least two loading docks as well as crude oil tank storage inland across Redfish Bay, is expected to be operation in late 2020. Sean Strawbridge, CEO of Port of Corpus Christi, says: ‘A project of this magnitude further underscores the vital role the Port of Corpus Christi plays in the global energy markets and as an important economic generator for the great state of Texas.’ ‘Corpus Christi is certainly where the incremental barrels want to go as we have deep water, availability of land for development and plenty of capacity to absorb the forecasted US energy production growth in oil and gas,’ adds Charlie Zahn, chairman of the Port of Corpus Christi.
OF EVERY SQUARE FOOT OF YOUR TANK SYSTEM MODEL 5200 › The Model 5200 is a pilot operated Pressure/Vacuum Vent engineered to vent the tank vapor away to a header system and to relieve vacuum pressure within the tank.
‹ MODEL 6A00 The Model 6A00 Flame Arrestor is one of the full line of arrestors that allows vapor to pass through so tank vessels can breathe while preventing propagation of a flame from the exposed side to the protected side.
MODEL 8900 › Series 8900 emergency relief vents available in hinged or top-guided design, for pressure only or pressure and vacuum relief.
‹ MODEL 1078 The Model 1078 Vacu-Gard is a pilot-operated valve, specifically designed to reduce blanketing gas losses on low-pressure storage tanks.
MODEL 2100 › The Model 2100 is a gauge hatch that allows easy access to tank vessels for gauging and sample collecting. Available as non-locking or with a Knob Latch or Kick Latch.
For immediate access to our product resource files, visit
www.cashco com Innovative Solutions
Cashco, Inc. P.O. Box 6 Ellsworth, KS 67439-0006 Ph. (785) 472-4461 Fax: (785) 472-3539 17
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
CAS-241A.indd 1
12/28/17 10:26 AM
TERMINAL NEWS l THE AMERICAS
I Squared commits $500 million toward new Delaware Basin midstream partnership
Tallgrass Energy announces Pony Express pipeline expansion
I Squared Capital has committed more than $500 million and contributed its Delaware Basin midstream portfolio company, Pinnacle Midstream, as part of a new partnership with EagleClaw Midstream and Blackstone Energy Partners.
Tallgrass Energy plans to expand capacity on its Pony Express pipeline up to an additional 300,000 barrels per day.
roceeds from I Sqaured, together with additional investments by Blackstone and EagleClaw’s management team, are being used to fund EagleClaw’s continued growth, including the expansion of EagleClaw’s system, the acquisition of Caprock Midstream, and the ongoing construction of the Permian Highway Pipeline. This investment by I Squared and the acquisitions of Caprock and Pinnacle further augment EagleClaw’s position as the leading privately-held midstream operator in the Permian’s Delaware Basin in west Texas. Pro forma for these acquisitions, EagleClaw operates almost 1,000 miles of natural gas, natural gas liquids, crude and water gathering pipelines, more than 1.4 billion cubic feet per day of processing capacity and crude storage and disposal facilities. It now has nearly half a million acres in the core of the southern Delaware Basin under long-term dedication for midstream services. EagleClaw is also a 50% partner with Kinder Morgan on the Permian Highway Pipeline. The acquisition of Caprock Midstream and Pinnacle Midstream marks the next step in the overall Delaware Basin midstream consolidation as EagleClaw continues to grow and diversify its business.
The company has announced a binding open season soliciting shipper commitments for crude oil transportation services from the Guernsey, Wyoming origin point to refinery delivery points along the Pony Express system and to Cushing, Oklahoma. The open season is expected to conclude on January 18, 2019. Based on commitments received, the capacity expansion of 300,000 barrels per day beyond expected year-end capacity of approximately 400,000 barrels per day. The expansion is expected to be staged over the next two years, with full-in service in the third quarter of 2020.
P
18
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
TERMINAL NEWS l GLOBAL
Save a further $180
with promo code 'TSM15'
12th
European Oil Storage Conference January 24-25, 2019 | Amsterdam Marriott Hotel | Amsterdam, Netherlands
Key topics for 2019: – – – – –
Setting the scene for oil storage: Supply and demand fundamentals Latest on geopolitics, the oil price, what’s in contango or backwardation, and where are tradeflows going? 2020 marine fuel sulphur cap: what does it all mean for oil storage? With expectations of a strong take up of distillates and the inherent drop off in fuel oil, how will this transform Europe’s storage utilization? International perspectives for oil storage: Latest on developments and best practices Updates on the SPRs in China and the US, impact of changes in product flows from Russia, and latest on capacity increases in the middle east and challenges in Africa Trading: Futures contracts and blockchain technology Are futures overvalued and what can we learn from blockchain pilot trading initiatives? Finance and investment trends and dissecting the latest M&As What is required for the storage industry today?
Principal media partner:
Book Now
www.platts.com/oilstorage conf_registrations@spglobal.com +44 (0)20 7176 6300 #europeanoilstorage DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
19
TERMINAL NEWS l ASIA
TERMINAL NEWS ASIA
Total & Adani Group in agreement for Indian LNG terminals Total and Adani Group have agreed to jointly develop multi energy offers, including new LNG infrastructure and service stations, to the Indian energy market.
T
he strategic partnership between Total, and Indian private conglomerate Adani Group, which specialises in trading, port infrastructure as well as energy production and distribution, includes the creation of LNG regasification terminals as well as a new retail network of 1,500 service stations. Both companies will develop various LNG terminals, including Dhamra LNG, on the East coast of India as well as a JV to build the retail network over a period of 10 years on the main roads of the country. Patrick Pouyanné, chairman and CEO of Total, says: ‘India’s energy consumption
will grow among the fastest of all major economies in the world over the next decade. This partnership illustrates our joint commitment to assisting India to diversify its energy mix and to ensure a supply of reliable, affordable and clean energy to consumers.’ Adani Group chairman Gautam Adani adds: ‘The collaboration enables us to associate with Total’s century-old legacy, global presence, scale and unparalleled go-to-market expertise. The global synergy between the two groups presents widespread benefits and long-term value for the economy and the people of India.’
BP in JV over New Zealand terminals WorleyParsons has entered into a joint venture with BP Oil New Zealand for a 50% shareholding in New Zealand Oil Services. Under the JV, New Zealand Oil Services has been awarded a terminal services agreement for the operation of BP’s seven bulk fuel storage, handling and distribution facilities in New Zealand. WorleyParsons also becomes NZOS’s preferred contractor to deliver engineering, project delivery and asset management services. Andrew Wood, CEO of WorleyParsons, says: ‘This contact demonstrates the synergies following our acquisition of AFW UK Oil & Gas in 2017. It builds upon our established relationship with BP and utilises WorleyParsons’ MMO expertise and capability.’
Dialog Group considers further investments in Pengerang complex Dialog Group is considering further investments in petrochemical plants within the Pengerang Integrated Complex. The group is exploring opportunities to further develop its investment in the Pengerang Deepwater Terminal its director of corporate services Chew Eng Kar told reporters following the company’s AGM. He said: ‘We have enough land, so there are opportunities where we can move into the petrochemical industry. We are discussing with partners and are exploring these opportunities but have yet to make any firm decisions.’ In its first quarter 2019 financials, the company says that the expansion of phase 1 is currently on going and that phase 2A, the dedicated petroleum and petrochemicals terminal for RAPID remains on track for full completion in early 2019. Additional, progress has been made for phase 3 with the signing of a MoU with the State Government of Johor Darul Ta’zim and the State Secretary, Johor to invest and develop common tankage facilities and deepwater marine facilities to support and promote the petroleum and petrochemicals storage and handling tank terminal business. Land reclamation activities for phase 3, which will be developed on 300 acres of land, have started, and Dialog are in discussion with potential customers for this phase.
20
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
TERMINAL NEWS l ASIA
GPS & Equinor to develop South East Asian LPG storage terminal Global Petro Storage and Equinor have signed an agreement to develop South East Asia’s first independent LPG storage terminal in Port Klang, Malaysia. The facility will be the first independent, refrigerated LPG terminal in Malaysia, and will provide storage services exclusively to Equinor. Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as selling volumes to markets like Bangladesh, the Philippines, India, Indonesia and Vietnam. It will have capacity to turn over 1.5 million tonnes of LPG each year and will be able to handle VLGC and pressurised LPG vessels on its jetty. Construction work will begin in January 2019 and the 135,000 m3 facility is expected to be complete by early 2021. GPS is the majority shareholder for the project and will develop, own and operate the LPG facility. Eric Arnold, MD and CEO of GPS, says: ‘The new LPG terminal is a highly strategic, unique asset that will give Equinor a new platform in South East Asia, and enhance its reach into the region, where the LPG market is growing. ‘GPS’s focus is on developing the infrastructure that suppliers of gas and petroleum like Equinor need to access the global marketplace. This is the latest example of how our technical and operational expertise combine with our financial muscle to deliver industry-changing projects. Molly Morris, vice president for products and liquids in Equinor, adds: ‘Malaysia is an attractive market and we believe that we will be a
competitive supplier to the wholesale Malaysian LPG market as well as to other markets in the region. ‘The terminal and storage are also strategically located for blending and selling to other growing markets in the region.’ Read our exclusive interview with GPS Group on page 28 & 29.
We understand how you need to reduce complexities at your plant.
CLEAN PROCESS + CLEAR PROGRESS You strengthen your plant’s safety, productivity and availability with innovations and resources.
Endress+Hauser helps you to improve your processes: • With the largest portfolio of safety instruments that comply with international regulations • With applied technologies and people who have extensive industry application know-how • With access to accurate and traceable information
Do you want to learn more? www.endress.com/oil-gas
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
21
INCIDENT REPORT
INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 8/11/18
19/9/2018
West coast of Norway
Sarroch, Sardinia
Sola TS
Saras refinery
An oil terminal and gas processing plant were shut down following a collision between a crude tanker and a military vessel. Operators of the Sture oil terminal and the Kollsnes gas processing plant closed the facilities as a precaution following the collision. The damaged military frigate was towed to shore and a salvage operation was launched, however there were no signs of leaks from the Sola TS tanker according to the Norwegian Coastal Administration.
A violent storm resulted in the flooding of some tanks with residual hydrocarbons on the surface that ignited after being struck by lightning. The fire was quickly contained and extinguished within several hours. The company said that considering the ‘exceptional nature of the events’ that generated the incident, the team managed the emergency with great professionalism. The damage to the facility was not assessed as being severe.
15/11/10
SeaRose FPSO, off the coast of Newfoundland, Canada Husky Energy Production at the SeaRose FPSO was shut in due to operational safety concerns resulting from severe weather. A day later a spill occurred as the company was in the process of resuming operations after concluding safety checks. A remotely operated underwater vehicle survey revealed that the release came from a subsea flowline connection and since November 16 no additional oil has been observed at the surface. The oil in the initial release has since dispersed. An investigation has been launched to establish the cause of the spill. The company has been working with the Canada-Newfoundland Offshore Petroleum Board and Canadian Coast Guard authorities to monitor the impact on wildlife and observation flights and sea vessel sweeps are being conducted.
22
28/10/18
Tianjin, China Sinotrans Jiuling Transport & Storage Company A lubricant storage tank caught fire in Sinotrans Jiuling’s facility in northern China. The blaze was quickly brought under control and no casualties were reported.
DECEMBER 18/JANUARY 19 VOLUME 14 ISSUE NO.6
I wish to subscribe for Tank Storage Magazine: A one-year, 7-issue subscription costs €210 DETAILS Title: (Mr/Mrs/Ms/Other):................................ Forename: .............................................. Surname:............................................................................... Job Title:......................................................... Company: ............................................................................................................................................... Address: ........................................................................................................................................................................................................................ ..................................................................................................................... Post/Zip Code........................................................................................... Country: ....................................................................................................... Telephone:................................................................................................ Fax: .............................................................................................................. Email: ...................................................................................................... Company Website:....................................................................................... Nature of Business: ................................................................................
METHOD OF PAYMENT 1)
.I enclose my cheque for € Euro/US Dollars$:
2)
Pay online at: www.tankstoragemag.com/shop
3)
Call: John Darke on +44 (0)20 3196 4383 or email john.darke@easyfairs.com
4)
Please invoice my company
........................... made payable to ‘Easyfairs Ltd.’
PLEASE INVOICE MY COMPANY
Payment of the subscription confirms you have read and accepted the conditions below.
Signature:.......................................................................................................... Date: ...................................................................................................
Please return this completed voucher with payment to: Subscription Department Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, United Kingdom Website: www.tankstoragemag.com
TERMS AND CONDITIONS Payment of a subscription confirms that you have read and accepted the following conditions. There can be no refund of monies in part or in full. A subscription once paid for, must be allowed to run for its entire duration without interruption. A lapsed subscription that is paid within three months of its expiry date is deemed to be renewed and not new for price of discount. Any discounts that may be offered are available until 31st December in the year in which the subscription starts or is renewed. The time limit for back issue claims: three months. DATA PROTECTION: The details you provide will be held on Tank Storage Magazine’s database to keep you informed of our products and services. Occasionally we make your details available to other reputable companies. If you do not wish to receive direct marketing communications from Tank Storage Magazine or third parties, please tick the box below and send the form back to the Database Manager at 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Tel: +44 (0)20 8843 8800 Fax: +44 (0)20 8892 1929 I do not want to receive further marketing information.