JUNE/JULY 17 Volume 13 Issue No.3
EXPANDING OILTANKING’S FOOTPRINT IN NORTH AMERICA Oiltanking is on the expansion track with a newly acquired terminal and a new facility in Texas
NEW STORAGE OPPORTUNITIES
Arc Logistics Partners explains how it is exploring new markets
REGIONAL FOCUS: THE AMERICAS
The voice of the storage terminal industry
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JUNE/JULY 17 VOLUME 13 ISSUE NO.3
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CONTENTS
Contents News TERMINAL NEWS 09 Europe 11
The Americas
20 Asia 21
Incident report
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30
Tank Storage Awards 24
Something to celebrate
Storage in the Americas
45
22
Tank terminal update: The Americas
30 Expanding Oiltanking’s footprint in North America 33
The Trump effect
41 Expanding into new storage opportunities 45 Unleashing America’s energy 49 Resurgent petroleum industry driving storage requirements
Market analysis 37
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Who’s steering the ship?
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CONTENTS
Contents
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Technical features 53 Technical news 62 Finite element analysis in cryogenic and refrigerated tank storage design 66 Optimising tank terminal operations: from insight to digitalisation 68 How to avoid building a new 10-year-old terminal 73 Plastic tanks: farewell to ‘fit and forget’ 76 The internet of tanks 79 The four P’s to successful coatings projects 83 The planner’s dilemma 87 The FARe approach in rim seal fires 90 Lightning protection for fiberglass reinforced plastic storage 93 Technical innovations in emission control 96 The fluid-handling advantages of screw pumps 98 Changing the future of tank cleaning 101 Protecting a storage terminal’s most valuable asset 104 The power of pumps to bring energy wells back to production 106 A stress-free approach to lifting
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Events 108 Industry excellence at the ILTA A preview of some of the exhibitors at this year’s ILTA exhibition at the Marriott Marquis Houston hotel in Houston.
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124 Getting creative with storage 127 A global storage hot spot 128 Advertisers’ index 129 Upcoming events JUNE/JULY 17 VOLUME 13 ISSUE NO.3
CONTENTS
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JUNE/JULY 17 VOLUME 13 ISSUE NO.3
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CONTRIBUTORS
Contributors JUNE/JULY 17 Volume 13 Issue No.3
JUNE/JULY 17 Volume 13 Issue No.3
EXPANDING OILTANKING’S FOOTPRINT IN NORTH AMERICA Oiltanking is on the expansion track with a newly acquired terminal and a new facility in Texas
NEW STORAGE OPPORTUNITIES
Arc Logistics Partners explains how it is exploring new markets
REGIONAL FOCUS: THE AMERICAS
The voice of the storage terminal industry
Front cover courtesy of HMT
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Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2017 US Institutional subscription prices is $243. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434. Periodical postage pending at Jamaica NY 11431. Subscription records are maintained at Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.
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CONTRIBUTORS
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COMMENT
Unleashing the energy
T
he tide seems to be turning and the winds of change are coming for global oil markets once more. While there has been a lot of scepticism surrounding the OPEC production cut, the results of this action seem to be paying dividends on reducing the global oil supply. Reports suggest that floating storage has declined by as much as a third in the first quarter of the year and top commodity traders are shedding their holdings in storage firms that profited from the prolonged oversupply. The likes of Glencore, Vitol and Gunvor have either completed or are looking to sell these holdings, with some analysts saying that they have ‘picked the right time to sell’. As speculation abounds that contango has already left the market, with several saying that backwardation will come by the second half of the year, the OPEC cartel are about to meet to discuss a possible extension of the output cuts. Both Saudi Arabia and Russia’s energy ministers have agreed there is a need to extend the cuts and suggest they should be extended until next March. However, when considering this market, anything is possible and there could still be a few surprises ahead. This issue of the magazine examines energy and storage markets in the Americas, and the US in particular seems to be flourishing at the moment thanks to President Trump’s pro-energy stance and his promise to ‘unleash energy’. In his first 100 days, President Trump has approved the controversial Keystone XL and Dakota Access pipelines and has
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increased access to federal areas for energy development. In fact, the API has said that the ‘right regulatory policies’ could see private investment exceed $1.3 trillion by 2035, which will be welcome news for many. Along with the lifting of export restrictions and the liberalisation of Mexico’s energy sector, the market is going from strength to strength as US domestic output continues to soar. Continued innovation and reduction of inefficiencies has made shale drillers remarkably resilient, driving down the breakeven price to around $40 per barrel from $80 in 2014. This edition is packed with analysis on this flourishing market, including a closer look at the Dakota Access Pipeline project, how a resurgent petroleum industry is driving the need for storage as well as what is next following the IMO decision last year. We also speak exclusively to Oiltanking North America about its growth plans in the region following the acquisition of a specialty chemical and petrochemical terminal and land to develop a new deepwater facility in Texas. Arc Logistics also shares more about new potential opportunities in the market and how it is focusing on organically growing its assets. The team will be attending the ILTA show so please come by our booth 164 to share your thoughts on this issue. We look forward to seeing many of you in Houston.
With best wishes, Jasmin
JUNE/JULY 17 VOLUME 13 ISSUE NO.3
COMMENT
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 JUNE/JULY 17 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l CONTENTS
Terminal news All the latest terminal storage news from around the globe
10 HES International to build tank terminal in Rotterdam
13 Crude storage added to TransCanada’s Cushing terminal
20 Tank terminal project announced in Jurong Port
EUROPE
The americas
09 Oiltanking Antwerp Terminal doubles capacity
14 Sprague acquires two New York refined product terminals
Oiltanking acquires land for Texas tank terminal
NuStar buys Texas crude pipeline and storage assets
Stolthaven Terminals reports improved results
10 Decal completes study for construction of LNG import terminal
HES International to build tank terminal in Rotterdam
17 Enterprise announces ethylene storage and pipeline projects
Greenergy starts diesel and gasoil supply from Thames Oilport
New dock added to Stolthaven Houston terminal
Vopak and Exmar will not pursue FSRU transaction
Zenith forms strategic alliance with storage consulting business
The Americas 11 Blueknight looking to expand terminal network 12 Oiltanking acquires Galveston storage terminal
President Trump approves Keystone XL Pipeline project
18 Contract awarded for Vopak’s Panama storage terminal
Vopak to expand terminal in Brazilian port
19 Zenith Energy announces palm oil storage expansion in Colombia
Asia
13 PBF Logistics acquires Sunoco’s Ohio terminal
20 Puma reports 16% increase in sales volumes
Crude storage added to TransCanada’s Cushing terminal
Pengerang Terminal celebrates 1,000th vessel
American Midstream and JP Energy complete merger
Tank terminal project announced in Jurong Port
For the latest news and developments visit www.tankstoragemag.com 08
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l EUROPE
Oiltanking Antwerp Terminal doubles capacity
Stolthaven Terminals reports improved results
Oiltanking Antwerp Gas Terminal plans to double its storage capacity following an agreement with INEOS.
Stolthaven Terminals’ financial reports reflect improved results at its Houston and Singapore facilities.
The agreement with INEOS is for the storage and handling of butane, which will serve as feedstock for the INEOS cracker in Cologne. The facility will expand its capacity by almost 100%. As part of the agreement Oiltanking will make substantial investments including the construction of a 135,000 m3 fully refrigerated butane tank, which will be the largest in Europe. The butane cracker feedstock will arrive at the Antwerp terminal by seagoing vessel, up to very large gas carriers (VLGC) for intermediate storage. It will then be shipped by barges via the Rhine to the INEOS facility in Cologne. This storage and handling solution will provide INEOS increased flexibility and security of supply enabling the INEOS to optimise the related supply chain. The company’s acquisition of the Antwerp Gas Terminal in 2016 was part of its pro-active, strategic reaction to changing global requirements for energy and feedstocks.
The company reported an operating profit of $16.7 million, up from $14 million, which it says reflects improved results at Stolthaven Houston, Stolthaven Singapore and increased income from joint ventures. Its first quarter operating revenue was up from $60.4 million to $59.7 million and average leased capacity was unchanged, with utilisation of 91.1%. Average storage and throughput revenue was down slightly, however, total product handled increased by 7.1% in the quarter. Improved results at the company’s Houston terminal were drive by increased steam heating revenue due to winter weather conditions. Performance was up at its Singapore facility as a result of maintenance costs falling due to higher-than-usual maintenance activity in the fourth quarter.
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TERMINAL NEWS l EUROPE
Decal completes study for construction of LNG import terminal
Decal, in a joint venture with San Marco Petroli, has completed a feasibility study for the construction of a 32,000 m3 LNG import terminal in Porto Marghera, Italy. The terminal will be able to receive feeder ships up to 30,000 m3 and is designed for LNG distribution to be used as low emission truck fuel for communities not connected to the national gas network and for ship bunkering. The total capacity will be 32,000 m3 in a full containment 30,000 m3 atmospheric tank and two bullet horizontal pressure vessels of 1,000 m3 each. It will be equipped with a berth for LNG carrier ships from 7,500 to 30,000 m3 suitable for ships up to 65,000 m3, up to five loading lands for LNG tanker trucks and a berth for 1,000 m3 barges.
HES International to build tank terminal in Rotterdam
Greenergy starts diesel and gasoil supply from Thames Oilport Greenergy has commenced road-loading of diesel and heating oil at Thames Oilport. The opening of road loading facilities is another milestone in the regeneration of the former refinery into an import terminal capable of meeting growing fuel demand in the south east. The facility received its first shipments of diesel and opened for ship-in/ship-out storage. This meant the company could benefit from the contango market conditions. At year end the company had more than 250 million litres of diesel stored at the facility. Refurbishment at the site has included upgraded automated roadloading facility, new driver facilities, work on new additive systems and a new control system. The next regeneration phase will enable petrol storage and road supply.
HES plans to develop a terminal for the storage and transhipment of petroleum products and biofuels at Maasvlakte 1 in Rotterdam. BP, who owns BP Refinery Rotterdam, has committed to plans for pipeline connections between the refinery and the terminal. The facility will have 52 tanks with a capacity of 1.3 million m3. Additionally, the Port of Rotterdam Authority will invest in a quay wall of 1,100 metres to accommodate three large or five smaller sea-going vessels. There will be nine berths in the Hudson harbour for barges. The facility, the HES Hartel Tank Terminal, will be an independent storage terminal where customers can store and tranship liquid products. BP has signed a multi-year contract, which will increase its activities in Rotterdam. Clean petroleum products will be stored at the terminal, including diesel, gasoil and petrol. It will also be possible to blend products, add additives and homogenise cargoes at the terminal. The tanks will vary in size from 5,000 to 50,000 m3. A quay wall will be built to accommodate vessels ranging in size up to VLCCs with a draft of 21 meters. CEO Jan Vogel says: ‘With the development of this terminal, HES International demonstrates that it can serve the long-term needs of its customers. At the same time, we are realising our ambitious growth plans. Together with the expansions at our terminals, the new facility will strengthen our position as one of Europe’s most important companies in terms of the storage and transhipment of dry and liquid bulk products.’ The facility is due to be constructed in 2018 and 2019 and is expected to be ready by the end of 2019.
Vopak and Exmar will not pursue FSRU transaction Vopak and Exmar have announced they will no longer pursue a transaction over Exmar’s FSRU business. At the end of 2016 both companies announced that they reached a conditional agreement on the acquisition of Exmar’s participation in FSRU assets. As previously reported, the deal was subject to the consent and cooperation of multiple stakeholders and that the ultimate scope of the transaction was dependent on that process. Both companies said in a statement that after careful consideration, they have concluded that these requirements will not be met on the envisaged transaction and that as a result, the closing of the transaction will no longer be pursued.
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
Blueknight looking to expand terminal network
Blueknight Energy Partners is seeking to expand its terminalling networking following stronger operating margins across most of its business segments. CEO Mark Hurley says that due to the company’s solid 2016 results, it was able to make strategic investments in its asphalt terminalling services business segment and that it is working to complete its Oklahoma condensate project to better utilise its Oklahoma crude oil transportation and storage assets. The company reported its adjusted EBITDA as $69.8 million for 2016 compared to $70.1 million for the same period in 2015. For the three months until the end of December 2016 the company’s EBITDA was $17.1 million, compared to $14.1 million for the same period in 2015, an increase of 21%. Hurley says: ‘We were able to make strategic investments in our asphalt terminalling services business segment further strengthening our presence as a terminal-centric, infrastructure-focused company that can provide bulk storage, transportation and
terminalling services throughout the US.’ He adds that the company’s asphalt products terminalling business continues to perform exceptionally well, with operating margins excluding depreciation and amortilisation increasing by 18% from 2015 to 2016. ‘Our asphalt terminalling business is well positioned to take advantage of the increased infrastructure spending we expect to see in the future,’ he adds. ‘We continue to search for growth opportunities and are looking to expand our terminalling network. We will continue to look to develop additional organic crude oil opportunities both within and outside Oklahoma. We believe our business is well positioned for growth and we believe that our new partnership with Ergon will provide additional access to different opportunities and we are aggressively exploring those as we move forward into 2017.’
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TERMINAL NEWS l THE AMERICAS
Oiltanking acquires Galveston storage terminal
Oiltanking has acquired the Oiltanking Galveston County terminal following its land purchase for the development of a deepwater terminal facility. The terminal currently handles specialty chemicals and petrochemicals with 69,000 m3 of storage capacity. The facility is located to the northwest of the company’s existing Texas City marine terminal and has extensive pipelines connections. It has 78 tanks, five truck racks with loading and unloading capabilities and significant railcar spots for loading, unloading and storage. It is situated on more than 200 acres, allowing ample room for expansion opportunities. It has substantial room for rail, truck, pipeline and storage expansion along with the opportunity to become an industrial park. The company says in a statement that a key advantage of the facility is its close proximity and pipeline connection to its existing Texas City terminal. The company says: ‘Both acquisitions fit perfectly with the Oiltanking strategy to offer excellent terminal services in key petroleum and chemical markets in North America. The port of Texas City is home to a vast refinery market and several chemical companies. Its short sailing time to open water and uncongested marine traffic position makes the port a highly valuable player in the Houston market.’
President Trump approves Keystone XL Pipeline project The US Department of State has signed and issued a presidential permit to construct the Keystone XL Pipeline. The project represents an investment of more than $15 billion in liquids and natural gas projects, according to a statement by TransCanada. TransCanada will continue to engage key stakeholders and neighbours throughout Nebraska, Montana and South Dakota to obtain the necessary permits and approvals to advance the project. The company has confirmed that it has discontinued its claim under Chapter 11 of the North American Free Trade Agreement and will end its US Constitutional challenge. Russ Girling, TransCanada’s president and CEO, says: ‘This is a significant milestone for the Keystone XL project. ‘We greatly appreciate President Trump’s administration for reviewing and approving this important initiative and we look forward to working with them as we continue to invest in and strengthen North America’s energy infrastructure.’
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
PBF Logistics acquires Sunoco’s Ohio terminal
American Midstream and JP Energy complete merger
PBF Logistics has acquired Sunoco Logistics’ refined products terminal in Toledo, Ohio for $10 million (€9.1 million).
American Midstream Partners and JP Energy have successfully completed their previously announced merger.
The terminal comprises a 10-bay truck rack and more than 110,000 barrels of chemicals, clean product and additive storage capacity. It is located adjacent to PBF Energy’s Toledo refinery and is directly connected to and is currently supplied by the Toledo refinery. PBF Logistics’s CEO Tom Nimbley says: ‘We are pleased with our acquisition of the Toldeo Terminal, which is PBFX’s second third-party acquisition and third transaction completed this year. ‘We welcome the employees of the terminal to the PBFX family and look forward to maximising the potential of our newest asset.’
Following a meeting of JP Energy unitholders, where a majority of them voted in favour of the agreement, American Midstream is now a large, more diversified midstream business operating in leading North American Basin. Lynn Bourdon, president and CEO of American Midstream, says: ‘Through this merger, American Midstream will emerge as a stronger company with higher growth, new business opportunities and a stronger financial position. ‘This merger allows us to expand our service offerings from the well-head to the end user market. The combined company will have an enhanced growth strategy by offering customers a more comprehensive and competitive suite of services that enables us to capture incremental fee opportunities that strengthen margins and maximise returns to our unitholders.’
Crude storage added to TransCanada’s Cushing terminal TransCanada plans to add 6.2 million barrels of new crude oil storage at its Cushing terminal in Oklahoma. The new storage will be owned by M2 Infrastructure and operated by TransCanada. Under the terms of the memorandum of understanding, M2 has an option to build up to 20 million barrels of storage, which would be built in subsequent phases. The project and option to expand are subject to completion of definitive agreements between the parties as well as acquiring the required approvals and land rights. Construction of the crude storage is expected to start in late 2017. M2 will work with Matrix Global Holdings to sell storage capacity to its customers through on-line auctions for futures contracts and/or physical forward agreements. J. Robert Collings, Jr, co-founder and manager of M2 Infrastructure, says: ‘This project’s unique position in Cushing, combined with the innovative excellence of Matrix, should provide the lowest cost, highest throughput, most liquid and most connected storage solution in the midcontinent – eliminating costly limitations of alternative storage programmes.’
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l THE AMERICAS
Sprague acquires two New York refined product terminals
Oiltanking acquires land for Texas tank terminal
Sprague Resources plans to buy two refined product terminal assets on Long Island, New York, from Carbo Industries and Carbo Realty.
Oiltanking North America has purchased extra land to facilitate the development of a deepwater terminal in Texas.
The terminals are located in Inwood and Lawrence, and have a combined petrol, ethanol and distillate storage capacity of 157,000 barrels. The terminals are supplied primarily by pipeline and have the ability to accept product deliveries by barge and truck. Carbo provides the storage, blending and additive injection capabilities to serve major branded petrol marketers as well as unbranded petrol/distillate marketers focused on the New York City and Long Island markets. The deal is expected to cost $70 million, plus payments for inventory and other customary items. David Glendon, president and CEO of Sprague, says: ‘The Carbo facilities have long been an integral component of our distribution network and we are thrilled to convert our position from tenant to owner in this critical location, further solidifying our status as one of New York’s premier refined products terminal operators and marketers. ‘While the Carbo terminals’ total combined storage capacity will rank among the smallest in our network, their expected combined annual throughput will be higher than any single Sprague-owned facility.’ DEPA Fluid Level Control_ad_135x90_20170516.pdf 1 16.05.2017 16:11:22
The operator has acquired 89 hectares of waterfront and industrial land in Texas City, which will be used for the development of its Texas Independent Deepwater Expansion (TIDE) terminal. The initial phase of development will comprise the construction of a finger pier with two deepwater docks with up to 14 meters draft. The new terminal has ample ready-to-build land available to construct more than 1.6 million m3 of storage, pipeline interconnectivity and additional jetties for crude oil, petroleum and gas products in the Houston market. Once the first phase is complete, Oiltanking says that the terminal will form a viable export/import/blending hub alternative in the Houston market by ‘creating a premier logistics platform with significant flexibility and optionality’. The TIDE terminal is close to Oiltanking’s existing Texas City terminal, which offers 550,000 m3 of liquid petroleum products, renewables, chemicals and gas storage capacity.
NuStar buys Texas crude pipeline and storage assets brands you trust.
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NuStar Energy has completed the purchase of Navigator Energy Services, which includes crude oil transportation, pipeline gathering and storage assets in west Texas. The transaction for $1.475 billion comprises more than 500 miles of crude oil gathering and transportation pipelines with 92,000 barrels per day, ship-or-pay volume commitments, a pipeline gathering system with more than 200 connected producer tank batteries and one million barrels of crude oil storage capacity with 440,000 barrels contracted to third parties. President and CEO Bradley Barron says: ‘We believe these are the right assets, in the right place, at the right time for NuStar. ‘They also provide us with a strong growth platform that, when coupled with our Eagle Ford system, will solidify our presence in two of the most prolific basins in the US, which better positions us for distribution growth in the future.’
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Autonomous On/Off Switch The pressurized air supply can be automatically switched on or off depending on the fluid level, allowing independent operator-free pumping.
ATEX Zone 0 Environment The fluid level control in combination with full cast stainless steel pumps is certified for use in Zone 0* gas environments.
Extended Service Life Design in combination with 316L stainless steel delivers superior resistance to corrosive chemicals such as alkalines, acids and solvents, thus ensuring reduced maintenance and longer service life. *Zone 0 conform only in combination with the following Zone 0 diaphragms: DEPA Nopped E4 (size 80 only approved for electrically conductive fluids), EPDM, NBR, PTFE
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l THE AMERICAS
There are 4,612 storage tank terminal facilities in 161 countries worldwide, combining to create over 250 billion gallons of aboveground storage capacity (https://www.tankterminals. com/). After many years in the aboveground storage tank industry and involvement in countless projects, there is one thing that we have learned for certain: tanks leak when it is least expected and floating roofs will collapse. To avoid releases caused by issues like catastrophic bottom failures cracked welds around nozzles and floating roof failures, tanks need to be routinely taken out of service and inspected by a certified third-party. This is not only good industry practice, but today there are many local, state and federal agencies that regulate the inspection of aboveground storage tanks. The Tank Entry Supervisors must be highly qualified and certified for all project phases. The IQCIA TES program is the most highly respected certification in the world for Tank Entry Supervisors. The goal of this certification is to minimize the risks of confined space hazards and to improve the overall safety performance of tank maintenance operations. Quality tank cleaning contractors will have a certified IQCIA Tank Entry Supervisor onsite throughout the duration of each cleaning project.
Stephen L. Figura Office: (800) 807-8882 l Cell: (704) 740-5830 l Email: Sfigura@tankentrysupervisors.com 16
www.tankentrysupervisors.com
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
Enterprise announces ethylene storage and pipeline projects Enterprise Products Partners plans to further develop its ethylene infrastructure with storage and pipeline projects following supporting customer commitments. It will repurpose a large, high-capacity ethylene storage well at its Mont Belvieu, Texas complex. Once complete in the third quarter of 2015, the 5.3 million barrel cavern will be able to inject/withdraw ethylene at a rate of 2,000 barrels per hour. Additionally, the company is also building a 24-miles ethylene pipeline from Mont Belvieu to Bayport, Texas. It will have the potential to connect both producing and consuming sites south of the Houston Ship Channel to Mont Belvieu. The pipeline will be routed through Enterprise’s ethane export terminal at Morgan’s Point, which provides future flexibility should the company develop ethylene export capabilities at the Morgan’s Point marine terminal. R.B. Herrscher senior vice president, petrochemical for Enterprise’s general partner, says: ‘As US ethylene production capacity expands over the next three years, access to reliable logistics services will be needed, and Enterprise is ideally positioned to fill the gap. ‘These growth capital projects will expand our ethylene system to meet the growing needs of the petrochemical industry. These new storage and transportation assets will also complement our existing capabilities, giving us the foundation for extending our ethylene value chain even further.’
New dock added to Stolthaven Houston terminal
A new shop dock will be built at Stolthaven Houston which will increase access to the terminal and minimise waiting and turnaround times. The dock project, which will be capable of handling tankers and barges, is part of company-wide upgrades and expansions to its global network of 19 owned and joint-venture facilities. Construction of the dock is expected to begin in the third quarter of 2017, with operations expected to start in the fourth quarter of 2018. Infrastructure improvements form part of Stolthaven’s long-term strategic plans for the facility in the Port of Houston, where congestion is a key challenge. Guy Bessant, president of Stolthaven Terminals, says: ‘This new dock will efficiently accommodate tankers of up to 50,000 deadweight tonnes, and represents the latest of our ongoing multi-million dollar infrastructure investments at Stolthaven Houston. ‘This new tanker and barge dock will allow us to develop currently vacant property, in order to offer additional storage to our customers.’ The company is also completing capital projects at its terminals in the UK, South Korea and Moerdijk, the Netherlands, which will increase global storage capacity by 180,000 m3.
Zenith forms strategic alliance with storage consulting business Zenith Energy has entered into a strategic alliance with Waypoint Solutions as part of its plan to identify projects for chemical and petrochemical storage, particularly in North America. The agreement sets out that the parties will collaborate on the development of physical storage and logistics solutions for the petrochemical industry and related markets, which includes terminal, marine, pipeline, rail and truck distribution. Jeff Armstrong, president and chief executive of Zenith, says: ‘This alliance is consistent with our strategy of providing storage solutions to meet the dynamic needs of customers given the future growth of processing and evolving chemical supply chains.’ ‘This partnership is a natural extension of our business and will allow us to pursue opportunities to service new and existing customers with chemicals storage needs by combining our experience with a proven leader in the field,’ says Jay Reynolds, CCO of Zenith. David Ellis, founder and MD of Waypoint adds: ‘This strategic alliance between Waypoint and Zenith is a remarkable opportunity for us to increase the span of Zenith’s strategic vision and explore new opportunities in this area of the midstream market. ‘Given the positive market development in the North American petrochemical space, we see opportunities to deploy capital and create compelling, customer focused supply chain solutions.’
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TERMINAL NEWS l THE AMERICAS
Contract awarded for Vopak’s Panama storage terminal
Vopak to expand terminal in Brazilian port
The construction of Vopak’s new storage terminal in Panama will be carried out by the consortium of FCC and Felguera IHI.
Vopak has announced it will expand its Alemoa terminal with 16 additional storage tanks.
The independent facility in Bahía las Minas will be located next to the existing 509,000 m3 Chevron terminal in Panama, which is operated for Chevron by Vopak. The terminal will have nine storage tanks for marine oil, fuel oil and clean oil products with an aggregate capacity of 360,000 m3. In addition to the tanks, the construction project will also entail complementary marine infrastructure, including jetties to handle ships of up to 80,000 dwt. Work is scheduled to start immediately and is expected to take 24 months to complete. The facility is strategically located to the Atlantic entry to the Panama Canal, which is at the crossroads of international transportation and trade routes for refined oil products in the Caribbean region. It will also serve the expected increasing bunkering needs resulted from the expansion of the Panama Canal.
The facility, which is located in Brazil’s Port of Santos, Latin America’s largest port, will have an extra 61,000 m3 of capacity added, increasing its total capacity after the project to 235,000 m3. Additionally, five more truck loading bays will be constructed, which will be able to handle up to 130 additional trucks per day. The new capacity will primarily be used for ethanol exports and the imports of fuels such as diesel and petrol. The investment is supported by long-term customer contracts. The project is expected to be commissioned by the first quarter of 2019.
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
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www.urtny.com
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
Zenith Energy announces palm oil storage expansion in Colombia Zenith Energy and Cargill have entered into an agreement for the storage and handling of palm oil in Zenith’s Palermo Tanks Terminal in Colombia. As part of this agreement, Zenith will build 19,000 m3 of storage capacity in four dedicated tanks for Cargill’s palm oil operation. Construction work started on February 1. The project comprises a new dyke, tanks with heating systems, a dedicated dock line, dedicated truck loading and unloading positions with capabilities to import and export products. Jeff Armstrong, president and CEO of Zenith, says: ‘We are pleased to form this agreement with Cargill, one of the leading global producers and traders of agricultural products. ‘Colombia remains an important and fast growing producer of sustainable palm oil worldwide, and this agreement is an important step forward for our Palermo Tanks facility in Barranquilla. We are excited to work with Cargill and look forward to advancing our partnership in the region.’
SCANDINAVIAN BY BIRTH
W O R L D
C L A S S
B Y
C H O I C E
600.000 CBM
OF BULK LIQUID STORAGE CAPACITY THROUGOUT SCANDINAVIA
www.itank.se +46 (0) 31 49 34 60
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l ASIA
Puma reports 16% increase in sales volumes
Pengerang Terminal celebrates 1,000th vessel
Puma Energy has achieved an EBITDA growth of 12% as a result of record sales volumes and a series of organic growth projects.
Pengerang Independent Terminals has celebrated receiving its 1,000th vessel.
In its 2016 financial results, the company increased sales volumes by 16% to 22 million m3 and increased gross profit by 7% and EBITDA across all segments and regions. Last year it finalised several major construction projects and increased storage capacity to 7.9 million m3 as well as acquiring its 100th terminal, in Belfast, Ireland from BP. CEO Pierre Eladari says: ‘I was pleased to see the business model responding to a sustained period of organic growth across the business segments and regions; with the completion of the integration of UK activities acquired in 2015, growth in the Americas driven by the retail segment and good operating performance in retail and aviation across all regions. ‘With the macro-economic environment improving and our ability to leverage the fully invested platform we have established, I am confident in the business’ ability to continue its growth trajectory in 2017.’
MT Maersk Katarina arrived at the facility in the first week of April, within two years since the facility was fully commissioned. The facility is located at the south-eastern tip of Peninsular Malaysia in Johor and has 1.3 million m3 of storage for crude and refined petroleum products. Law Say Huat, CEO of the terminal, says: ‘This remarkable milestone reflects the confidence our customers have with our operations at Pengerang and also our vision to be the safest terminal with exceptional service excellence.’
Tank terminal project announced in Jurong Port Jurong Port and Oiltanking have embarked on a joint venture tank terminal project involving the construction of 19 storage tanks. Rotary Engineering has secured the engineering, procurement and construction contract for the $140 million (€128 million) project. The project comprises 19 clean petroleum product storage tanks, pump stations, valve manifolds, firefighting system, slop and waste water system, utilities, building, jetty topsides
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and interconnecting pipeline from Jurong Port to Oiltanking’s tank terminal. The terminal, situated on 16 hectares of land, will also be installed with a terminal controls system to ensure efficient operations. The facility will be located directly opposite Jurong Island’s petrochemical hub. It will
have an initial capacity of 232,000 m3 with the potential to add another 230,000 m3. It will be supported by jetties with a draft of 16 meters, capable of berthing vessels up to 120,000 dwt. Roger Chia Kim Piow, chairman and MD for Rotary, says: ‘The demand for liquid bulk storage remains resilient.’
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
INCIDENT REPORT
Incident report
A summary of the recent explosions, fires and leaks in the tank storage industry 20/3/2017
3/4/2017
Enbridge
National Fuel
Strathcona County, Alberta, Canada Oil leaked from Enbridge’s storage facility into a storm pond on an adjacent site and into a creek. The source of leak has not been reported but it was quickly controlled and all the oil was contained after the National Energy Board responded to the incident. No one was injured and there was no risk to the public, according to the board. The Transportation Safety Board of Canada launched an investigation to establish the cause of the leak.
2/4/2017
Caddo Parish, Louisiana QEP Resources
A lightning strike is the suspected cause of an oil storage fire. Caddo Parish Sheriff’s Office said that the tank contained crude oil and salt water. The fire was quickly contained and was left to burn itself out.
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
Forestville, New York Lubricant oil leaked from a National Fuel storage tank in its compressor station. Representatives from the New York State Department of Environmental Conservation were on site after being quickly notified of the spill and monitored the company’s response plan. The company said in a statement that 2,133 gallons were quickly recovered from the 2,200 gallon tank the same day the spill was reported.
23/4/2017
Gulf of Paria Petrotrin
More than 300 barrels of crude oil leaked into the Gulf of Paria from Petrotrin’s Pointe-a-Pierre refinery. Petrotrin started immediate clean-up operations as well as containment of the spill, which resulted in wildlife being covered with oil. A national oil spill contingency plan was implemented in Trinidad and Tobago after the spill was detected in their region.
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