Tank terminal update

TANK TERMINAL UPDATE: NORTH AMERICA

Texas, US

VOPAK

Products: Petrochemicals Capacity: 144,000 m3

Construction/Expansion/Acquisition:

Vopak has opened a new, 100% owned and operated, industrial terminal on the US Gulf Coast to serve Gulf Coast Growth Ventures, a joint venture by ExxonMobil and SABIC for a world-scale plastics facility in San Patricio County, Texas, US.

Comment:

The Gulf Coast Growth Ventures cracker will produce 1.8 million tpa of ethylene from ethane, to feed a monoethylene glycol unit and two polyethylene units. Construction on the facility began in Q3 2019 and it is expected to start up in 2022.

SUNOCO

Products: Refined products Capacity: 14.8 million bbl (NuStar) and 140,000 bbl (Cato) Investment: US$255.5 million (€215.1 million)

Construction/Expansion/Acquisition:

From NuStar, Sunoco bought the Blue Island terminal in Illinois, Andrews Air Force Base, Baltimore and Piney Point in Maryland, Jacksonville in Florida, Linden and Paulsboro in New Jersey, and Virginia Beach in Virginia. From Cato, Sunoco bought a terminal in Salisbury, Maryland.

US

Edmonton, Canada

GIBSON ENERGY

Products: Crude oil and refined products Capacity: 435,000 bbl

Construction/Expansion/Acquisition:

Gibson Energy is to build a new 435,000 bbl tank at its Edmonton terminal in Canada.The Edmonton terminal currently has a total capacity of 1.7 million bbl. The new tank is expected to enter service in early 2023.

Montana, US

CALUMET SPECIALTY PRODUCTS PARTNERS

Products: Renewable diesel

Construction/Expansion/Acquisition:

Matrix Service will build seven new renewable diesel storage tanks to support the production of up to 12,000 bpd of renewable diesel from soybean oil feedstock at Calumet’s new facility in Great Falls, Montana, US.

Comment:

Engineering for the tank project will be carried out by Matrix Service’s sister company, Matrix PDM Engineering.

Oklahoma, US

USD PARTNERS

Products: Crude oil

Construction/Expansion/Acquisition:

USD Partners is to build a new pipeline connection to a second 300,000 bbl storage tank at a neighbouring third-party facility at its Stroud terminal in Cushing, Oklahoma, US. The increased connectivity will give the terminal better capability to serve multiple customers and multiple grades of crude oil simultaneously.

Comment:

The pipeline will be completed in Q1 2022.

ENBRIDGE

Products: Crude oil Investment: US$3 billion (€2.54 billion)

Construction/Expansion/Acquisition:

Enbridge has bought a number of storage and terminal assets from Moda Midstream and financer EnCap, including the 15.6 million bbl Moda Ingleside Energy Centre (MIEC), Flatrock Midstream, the 350,000 bbl Taft terminal, the 300,000 bpd Viola pipeline, and a 20% interest in the 670,000 bpd Cactus II pipeline. MIEC will be renamed the Enbridge Ingleside Energy Center (EIEC).

Comment:

Permits are in place at EIEC to increase the storage capacity to 21 million bbl and the export capacity to 1.96 million bpd.

ST. LOUIS LAMBERT INTERNATIONAL AIRPORT

Products: Jet fuel Capacity: 3 million gallons (13.6 million L) Investment: US$50 million (€43.1 million)

Construction/Expansion/Acquisition:

A new bulk jet fuel storage facility has opened at St. Louis Lambert International Airport (STL), designed and built by engineering firm Burns & McDonnell. It has three 1 million gallon aboveground storage tanks, an 11,000’ (3,353 m) underground fuel transmission pipeline, five horizontal pumps, a 4,300 ft2 operations building and fuelling infrastructure which cost an additional US$50 million.

Comment:

The facility is double the size of the previous facility and has room for another 1 million gallon tank.

PHILLIPS 66

Products: Crude oil, refined petroleum product and natural gas liquids Investment: US$3.4 billion (€2.91 billion)

Construction/Expansion/Acquisition:

Phillips 66 is to buy all remaining shares that it does not already own in Phillips 66 Partners, which it set up to focus on fee-based crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets.

Comment:

Following the transaction, expected to be completed in Q1 2022, Phillips 66 Partners will become a wholly owned subsidiary of Phillips 66.

US St. Louis, US

Texas, US

Canada

BROOKFIELD INFRASTRUCTURE

Investment: C$8.6 billion (€6.8 billion)

Construction/Expansion/Acquisition:

Brookfield Infrastructure has closed a deal to buy all remaining Inter Pipeline common shares for C$20/share and own 100% of the company,

Comment:

Brookfield initially launched a hostile takeover offer for Inter Pipeline in February 2021, which was rejected in favour of a rival offer from Pembina, before a new deal was reached.

Corpus Christi, US

PIN OAK CORPUS CHRISTI

Products: Crude oil Capacity: 1.2 million bbl

Construction/Expansion/Acquisition:

Pin Oak Corpus Christi has completed a new pipeline connection and 1.2 million bbl of new tank capacity at its Taft terminal in Texas, US for Permian and Eagle Ford crudes.

Comment:

Pin Oak is now the only company in the Corpus Christi/Ingleside/Taft area that can offer customers direct access to the region’s Permian and Eagle Ford long-haul pipelines and to the Flint Hills Resources, Valero, and CITGO refineries.

US

BRENNTAG

Products: Chemical solvents

Construction/Expansion/Acquisition:

German chemical and ingredients distribution company Brenntag bought North American solvents distributor Matrix Chemical, which operates storage tanks at bulk terminals in Houston in Texas, Chicago in Illinois, Vanport in Pennsylvania and Wilmington in North Carolina.

Comment:

Matrix serves industries including personal care, adhesives, and paint and coatings.

Louisiana, US

IMTT

Products: Renewable feedstocks and products

Construction/Expansion/Acquisition:

IMTT will build six new storage tanks for the storage of biodiesel, renewable diesel, and feedstocks, and two pipelines and related dock infrastructure, at its marine terminal in Geismar, Louisiana, US.

Comment:

The capacity will be used by IMT customer Renewable Energy Group (REG), which is expanding its nearby biorefinery to produce 340 million gallons of renewable diesel products annually, with completion due in 2023.

Illinois, us

HARVESTONE GROUP

Products: Biofuels Capacity: 400,000 bbl

Construction/Expansion/Acquisition:

Harvestone Group, a global commodity merchant focussed on biofuels, has bought Gateway Terminals in Sauget, Illinois, US on the banks of the Mississippi River. It is a multimodal terminal with truck, rail, and barge loading and unloading capabilities.

Comment:

Kevin Stewart, chief marketing officer of Harvestone, says that the acquisition will strengthen the company’s position in key supply chains.

Texas, US

JEFFERSON ENERGY COMPANIES

Products: 1.9 million bbl

Construction/Expansion/Acquisition:

Jefferson Energy will build 1.9 million bbl of new storage capacity at its terminal on the Neches River, in ExxonMobil’s Beaumont, Texas, US refining complex, and five connecting pipelines to allow ExxonMobil to make better use of the existing marine infrastructure.

Comment:

The expansion work will increase the terminal’s capacity to around 6.2 million bbl.

US

HOLLY ENERGY PARTNERS

Products: Crude oil and refined products Capacity: 4.5 million bbl Investment: US$758 million

Construction/Expansion/Acquisition:

Holly Energy Partners (HEP) has bought Sinclair Oil Corporation’s integrated crude and refined products pipelines and terminal assets, including eight product terminals and two crude terminals, and more than 1,200 miles (1,931 km) of pipeline. HEP will also acquire Sinclair’s interests in three pipeline joint ventures – Powder Flats Pipeline, Pioneer Pipeline and UNEV Pipeline.

Comment:

HEP parent company HollyFrontier Corporation also bought Sinclair’s branded marketing business, renewable diesel business, and two refineries in the Rocky Mountains in the US for US$1.8 billion, forming a new parent company, HF Sinclair Corporation, to trade on the New York Stock Exchange.

Texas, US

ENTERPRISE PRODUCTS PARTNERS

Products: Ethylene Capacity: 308 million pounds (140,000 tonnes)

Construction/Expansion/Acquisition:

A subsidiary of US midstream company Enterprise Products Partners has bought Nova Chemicals Corporation’s ethylene storage business and trading hub in Mont Belvieu, Texas, US, the largest in the state, with a 308 million pound underground storage cavern.

Comment:

Chris D’Anna, senior vice president, petrochemicals of Enterprise’s general partner, says that the acquisition will complement the company’s growing ethylene network.