Latest storage news
Standic will build a new chemical storage terminal in Port of Antwerp, doubling its capacity in the port.
In addition to its current terminal in Dordrecht, the Netherlands, Standic will build a new storage terminal in the 5th Haven dock in the Port of Antwerp with an initial capacity of around 95,000 m3 and a potential total capacity of 230,000 m3.
The facility will be fully automated, with built-in sustainability features such as onshore power for ships moored at the terminal, to meet the requirements of the customer.
Ronald Ooms, managing director of Hametha group, which owns Standic, says: 'Port of Antwerp is known as one of the largest maritime clusters in the world, which is why we chose it for our expansion.
'We aim to build on our success with chemical storage and further expand it. In Antwerp we will be able to further develop in the niche market of more specialized chemicals and serve our customers from all over the world.'
The terminal, which will have an investment of €200 million, will focus on niche chemical markets and distribution of chemical products with tanks varying in size from 500 m3 to 3,500 m3.
Large chemical tankers will be able to reach the terminal easily thanks to the favourable depth in the port. In addition to its accessibility by water, the location is also very favourable for rail transport.
William Demoor, customer relations manager at the Port of Antwerp, says: 'The new Standic terminal will further boost the synergy between the various industrial companies in the port, thus helping to make logistic operations and processes even more cost-efficient. Furthermore, the location is ideal for multimodal access, a key factor for sustainable distribution of chemicals.'
Hand-over is planned for the first quarter of 2021.
A $210 million petroleum storage terminal financed by the Abu Dhabi Fund for Development has been officially opened.
With a holding capacity of 356,000 tonnes, the project includes the construction of 22 storage facilities for light petroleum products including LPG as well as petroleum derivatives including diesel, gasoline and jet fuel. The terminal is also fitted-out with loading and unloading areas for tanks as well as a water treatment system.
The funding for the project was made as part of the UAE government's contribution of $1.25 billion in 2013 to the Gulf Development Fund – a AED5 billion programme between the GCC member countries to finance development projects in Jordan.
His Excellency Mohammed Saif Al Suwaidi, director general of ADFD, says: 'The UAE and Jordan enjoy historic bilateral relations. The UAE leadership is committed to providing all forms of support to Jordan towards achieving comprehensive development in the country.
The petroleum storage facilities project in Jordan has important economic development benefits. Apart from upgrading the oil sector infrastructure, it is designed to help the Jordanian government address challenges in achieving energy self-sufficiency and securing strategic reserves of petroleum derivatives.'
Her Excellency Hala Zawati, the Jordanian minister of energy and mineral resources, highlighted the importance of the petroleum storage facilities project, noting its storage capacity in ensuring the supply and security of oil derivatives. She added that the petroleum storage facilities project provides storage units to maintain a reserve of petroleum products sufficient for 60 days of domestic consumption across Jordan. The project will enhance Jordan's oil security and infrastructure.
ExxonMobil and SABIC will proceed with the construction of a chemical facility and a 1.8 million metric tonne ethane steam cracker in Texas.
The Gulf Coast growth ventures project received final environmental regulatory approval in June 2019 to build an ethane steam cracker, two polyethylene units and an monoethylene glycol unit. Construction work will start in the third quarter of 2019 and startup is expected by 2022.
Project construction will be led by four primary EPC companies: The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group.
Darren Woods, chairman and CEO of ExxonMobil, says: 'Building the world's largest steam cracker, with state-of-the-art technology, on the doorstep of rapidly growing Permian production gives this project significant scale and feedstock advantages.
'It is one of several key projects that provide the foundation for significantly increasing the company's earnings potential.'
SABIC vice chariman and CEO Yousef Al-Benyan adds: 'SABIC is very pleased to move forward on this joint venture with ExxonMobil – the first to be operated outside of Saudi Arabia.
'This project will not only increase global diversification for our company but will also continue to create value within our new home of San Patricio County through creating jobs and supporting economic growth.'
Two tankers operated by Frontline and Bernhard Schulte have been attacked and have suffered damage while transiting waters in the Gulf of Oman.
According to various news agencies, Frontline's 110,0oo-dwt LR2 Front Altair, carrying naphtha, was hit by 'surface attacks' on Thursday (June 13) resulting in a large fire that forced the crew to evacuate.
Bernhard Schulte's chemical tanker Kokuka Courageous was also hit. The company stated that the hull was breached above the water line and that all crew were evacuated. The vessel is now being towed towards Khor Fakkan, in the UAE, with the crew on board.
The attacks follow a month after four tankers were attacked in waters just off Fujairah. The vessels, which included a VLCC and a LR2 belonging to Bahri, were struck on May 12.
The exact cause of the attacks on the Kokuka Courageous and Front Altair are unknown, however the US has blamed Iran, with Iran saying the accusations are unfounded.
Howard Energy Partners has completed the expansions of its storage terminal facilities in Port Arthur and Corpus Christi, Texas.
The completion of these projects increases the company’s Gulf Coast terminal storage capacity to 2.6 million barrels with three ship docks, three barge docks, unit train loading capacity for up to two trains per day, and direct pipeline connectivity through wholly owned pipelines to seven refineries.
Brad Bynum, co-founder and president, says: ‘The substantial expansions at our Port Arthur and Corpus Christi facilities signify HEP’s commitment to designing and constructing fully-engineered facilities that are tailored to meet the exact needs of our customers.
‘We currently have more than 470 acres for additional Gulf Coast expansion projects, including significant water frontage. We will continue to work closely with our customers to understand their needs and evaluate growth projects that create beneficial results for all participants within the supply chain.’
The Port Arthur facility, strategically located on 450 acres of land on Taylor Basin and Taylor Bayou, and expansion comprised 12 new tanks, four butane bullets, two barge docks, one ship dock and a 6.5-mile, bidirectional pipeline. The company will now be able to blend gasoline with up to six separate components at delivery rates of up to 40,000 barrels per hour, to meet specific regional and international quality specifications.
With the completion of this work, Port Arthur now comprises 16 tanks with 1.35 million barrels of storage capacity, with 8.8 miles of rail track and four butane bullets.
The company recently contracted with an existing customer to load additional unit trains at their Corpus Christi bulk liquids terminal facility, bound for new destinations in Mexico.
As part of the contract, HEP is acting as an agent to assist with oversight of the engineering, procurement and construction of a new receiving terminal in northern Mexico. Once completed later this year, the new receiving terminal will increase the utlisation of HEP’s 65,000 barrel per day rail loading facility.
Located within the Port of Corpus Christi, HEP’s terminal facility currently consists of six tanks with 480,000 barrels of storage capacity, a MR Class ship dock, a 12-inch pipeline with connectivity to six local refineries, and unit train loading facilities capable of loading one-unit train per day.
Howard Energy Partners explains more about the expansion projects and its future development plans in an exclusive interview in the June/July edition of Tank Storage Magazine
As of Monday, June 10 total oil product stocks in Fujairah stood at 23.889 million barrels falling 117,000 barrels week on week. Overall product stocks fell by 0.5% with draw downs in both middle and heavy distillate stocks, while stocks of light distillates saw a small build.
Stocks of light distillates rose by 319,000 barrels reflecting a build of 3.2% week on week. Total volumes stood at 10.154 million barrels. The gasoline market East of Suez remained well supplied despite discussion of run cuts by refiners in Asia, sources noted. 'The near term outlook looks bearish. If China keeps exporting more gasoline in the market, eventually we are going to see the market get even weaker than it is now,' a source said. The 92 RON physical gasoline crack to front month ICE Brent futures stood at $2.93/b on Tuesday, reflecting a rise of 18 cents/barrel week on week.
Stocks of middle distillates fell by 8.7% falling 191,000 barrels to stand at 2 million barrels at the start of the week. This is the lowest level since the end of April when stock levels fell under 2 million barrels to stand at 1.992 million barrels. East of Suez saw a bearish sentiment for middle distillates due to a combination of ample supplies and weak demand. 'Demand isn’t that great for the time being,' a source said.
Stocks of heavy distillates fell 2.0%, dropping by 245,000 barrels on the week to stand at 11.735 million barrels. A fall in flat price for bunkers was seen as stimulating demand in Fujairah, a source noted. 'It's good, seeing big quantities now that market dropped [from previous day],' the source said. Fujairah delivered 380 CST bunkers were assessed at $385.75/mt on Tuesday, reflecting a $0.50/mt premium to Singapore delivered 380 CST bunkers.
Equilon Enterprises, a subsidiary of Shell, will sell its Martinez refinery in California to PBF Holding for $1 billion.
The sale for $1 billion includes the value of hydrocarbon inventory, crude oil supply and product offtake agreements, and other adjustments.
The divestment aligns with Shell's strategy to reshape refining efforts towards a smaller, smarter refining portfolio focused on further integration with Shell trading hubs, chemicals and marketing.
The transaction is expected to close in 2019.
John Abbott, Shell's downstream director, says: 'This deal is another step in our transformation to high-grade and optimise our portfolio to drive resilient returns.'
The largest LNG storage terminal in the Nordics has been opened in Röyttä harbour, Tornio.
The facility addresses the growing demand for low emission LNG and strengthens LNG's security of supply in the northern Nordics. The new terminal significantly enhances the area's competitiveness by ensuring the availability of energy that is affordable, how low emissions and can be used by the local industry, as well as maritime and heavy-duty traffic.
The deployment of the new terminal will ensure shipments to northern Finland and Sweden. The terminal is the result of multiple companies working together for several years through Manga LNG, a joint venture consisting of Outokumpu and SSAB steel companies, EPV Energy and the energy company Gasum.
Kimmo Rahkamo, vice president, natural gas and LNG, Gasum, says: 'Tornio terminal is a ground-breaking collaboration between several companies and its opening is a long-awaited milestone for all of us. The deployment of the new LNG terminal significantly supports the emission goals of Finland, as well as the entire Nordics.
'The shift to cleaner fuel solutions is a worldwide trend that needs to be accelerated in every way possible. With the use of LNG, we reduce the local pollutant emissions of maritime and heavy-duty traffic, while keeping the industry of northern Finland competitive by offering energy that has low emissions and is affordable to the needs of different operators.'
Manga LNG CEO Mike Kolehmainen adds: 'Tornio's LNG terminal is the biggest in the Nordics. Previously, the only LNG terminal in Finland was in Pori – some 600 km to the south. The Tornio terminal is equipped with bunkering stations for LNG vessels, regasification equipment for LNG as well as a storage unit that is 50,000 m3 in volume.'
Phillips 66 and Bridger Pipeline have formed a joint venture to build a $1.6 billion pipeline serving the Rockies and Bakken regions.
The 24-inch Liberty Pipeline will provide crude oil transportation service from the Rockies and Bakken production areas to Cushing, Oklahoma.
From Cushing, shippers can access multiple Gulf Coast destinations, including Corpus Christi, Ingleside, and Houston, Texas.
Liberty is underpinned with long-term shipper volume commitments. Initial service on the pipeline is targeted to start as early as the first quarter of 2021.
Greg Garlands, chairman and CEO of Phillips 66, says: 'The Liberty Pipeline presents us with a great opportunity to serve producers in the growing Bakken and Rockies production areas. The pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centers. Our pipeline network has strategic alignment with our Central Corridor and Gulf Coast refineries, further enhancing value across our assets.'
President of Bridger Pipeline Hank True adds: 'The Liberty Pipeline is an important undertaking on the part of our company to ensure that oil from Wyoming, the Rockies and the Bakken can get to markets in the US and around the world.'
Phillips 66 will lead project construction for the joint venture and will operate the pipeline. The project is expected to cost $1.6 billion.
Martin Midstream Partners has announced plans to sell its interests in Arcadia Gas Storage, Cadeville Gas Storage, Monroe Gas Storage and Perryville Gas Storage to Hartree Bulk Storage for $215 million.
The natural gas storage assets comprise 50 billion cubic feet of working capacity in northern Louisiana and Mississippi. The transaction is expected to close around the second quarter 2019.
Ruben Martin, president and CEO of Martin Midstream, says: 'Our agreement to sell the natural gas storage assets is an important piece of the partnership's strategy to strengthen the balance sheet and re-focus our operational expertise on the refinery services industry.'
Co-founder of Hartree Partners Steve Semlitz adds: 'We are excited about the opportunity for Hartree Bulk Storage to acquire the natural gas storage assets and operate them as independent facilities.
'The natural gas storage assets are high-performing facilities strategically located in the Gulf Coast. Hartree Bulk Storage plans on further optimizing these facilities and their capabilities in the near-term, to better serve customers in the ever-growing Gulf Coast region.'
GP Lubricants has inaugurated its new oil storage terminal in the Hamriyah Free Zone, Sharjah, UAE.
The facility comprises 10 storage tanks for base oils, each with a capacity of 6,550 MT. The terminal is connected through a 12-inch underground pipeline with a bunkering pit from the main jetty of Hamriyah Free Zone's sea port.
His Excellency Ambassador of Pakistan to the UAE Moazzam Ahmad Khan attended the opening ceremony along with Consul General Dubai Ahmed Amjad.
Vopak has officially opened its Ridley Island Propane Export Terminal, the first such export facility for propane in Canada.
The facility in Prince Rupert, British Columbia, is a joint venture of AltaGas and Vopak and began introducing propane feedstock in mid-April, and the first shipment departed on May 23 bound for customers in Aisa.
Eelco Hoekstra, chairman of the executive board and CEO of Vopak, says: 'We are very excited about this important milestone in our good and strategic partnership with AltaGas. AltaGas is a well-respected Canadian company with experience in developing energy projects, while storage and handling of gas is an important strategic focus area for Vopak. This export facility opens market access for western Canadian producers to Asia, a premium market for propane.'
BP and IEnova have executed a new long-term contract for BP to use the refined product receipt, storage and delivery terminals that IEnova is developing in Mexico.
BP will be able to store more than one million barrels in these terminals in Manzanillo, Colima and Guadalajara, Jalisco to supply more than 150 BP service stations in the western region of the country.
In the Manzanillo terminal, BP will have 740,000 barrels of storage, which represents 50% of the terminal's capacity. In the Guadalajara terminal, the agreement will allow up to 290,000 barrels of gasoline and diesel storage.
In 2018, BP announced it will utilise 50% of the storage capacity of IEnova's Baja Refinados terminal in Ensenada, Baja California, which is currently under development.
This new agreement will allow BP enhance its supply options, improve logistics, and increase fuel delivery reliability, which will contribute to energy security in Mexico's central-western region.
Additionally, BP will have the option to acquire between 20% to 25% of the equity in these projects, subject to certain agreements, once they reach commercial operations.
Plains All American Pipeline has announced an expansion and new joint venture of its existing Red River Pipeline system.
Delek Logistics Partners has bought a 33% ownership interest from a Plains subsidiary in a new Red River Pipeline Company joint venture for $128 million. Plains retained a 67% interest in the joint venture and will continue to operate the Red River system.
Delek US has increased its long-term throughput and deficiency agreement on the Red River system from an existing 35,000 barrels per day to 100,000 barrels per day. The expansion enables additional volume pull-through from Cushing and the Permian to the US Gulf Coast markets, providing additional supply optionality for shippers.
Jeremy Goebel, executive vice president – commercial, Plains All American, says: 'This is a win-win deal that fits our strategic of optimising and expanding existing systems while exercising capital discipline.
'This transaction expands long-term alignment with a natural shippers, supports and funds the expansion of the system, increases Plains' net committed annual cash flow, and provides proceeds to fund our capital programme or lower debt.'
The expansion will increase the total system capacity from 150,000 barrels per day to 235,000 barrels per day through the addition of pumping capacity and is expected to be completed during the first half of 2020.
Shell has increased storage capacity at its Bukom refinery in Singapore with two large crude oil tanks.
The expansion, which is part of the company's ongoing effort to improve competitiveness by investing in storage and logistics at its core refineries as well as meet growing demand in the Asia Pacific region, increases the site's storage capacity by nearly 1.3 million barrels.
Increased storage capacity at Bukom gives Shell greater flexibility to optimise its oil trading activities.
Robin Mooldijk, executive vice president for manufacturing at Shell, says: 'This project positions Shell to capture stronger margins and better manage market volatility over the coming years. These new facilities enable us to buy more oil when market conditions are attractive.'
The new storage tanks were built using innovative automated technology, which helped the team safely accelerate project delivery and reduce costs.
Shell built the tanks using an automated welding technology, which helped reduce welding time by 60% and lowered costs. A special aluminum alloy used in the tank roofs provides better protection against severe weather, such as lightning. The company also used a new method to lift, move and install heavy materials when building tanks, which helped keep employees safe during construction by reducing the need to work at heights and to carry out heavy lifting. A new seawall was built, and the company also modified nearby drainage systems to help protect the environment.
Singapore is Shell's largest petrochemical production and export centre in the Asia-Pacific region. Demand for some oil products such as diesel, jet fuel and bitumen in the region and globally is expected to increase over the next 20 years as populations continue to growth and more people achieve a higher standard of living.
Valero Energy UK and B&A Contracts have been fined £5 million after a storage tank explosion killed four workers and seriously injured another at a Pembrokeshire oil refinery in 2011.
Dennis Riley, 52, Robert Broome, 48, Andrew Jenkins, 33, and Julie Jones, 54, died after the tank exploded at the site. Andrew Philips also sustained major injuries.
Swansea Crown Court heard how on June 2, 2011, the five workers were emptying a tank in the amine recovery unit using a vacuum tanker when the explosion and subsequent fire took place. B&A Contracts, which was a long-term contractor at the refinery, was carrying out the work, with support from another contractor, Hertel.
The explosion resulted in a fireball that severed the five-tonne tank roof, and this was projected 55 meters to impact against a butane storage sphere. The roof narrowly missed a pipe track where a range of flammable materials were carried.
At the time of the incident the refinery was operated by Chevron, but ownership changed in August 2011 when the sale to Valero was completed. Chevron will pay the fine and court costs after coming to an agreement with Valero Energy.
A Health and Safety Executive investigation found the explosion was most likely to have been initiated by the ignition of a highly flammable atmosphere within the tank, during what should have been a routine emptying operation in preparation for further cleaning and maintenance.
The investigation found there has been longstanding failures within the refinery safety management systems and as a result the risks posed by flammable atmospheres within the amine recovery unit were not understood or controlled.
Valero Energy UK pleaded guilty to breaching sections 2(1) and 3(1) of the Health and Safety at Work Act 1974. The company has been fined £5 million and ordered to pay costs of £1 million.
B & A Contracts in Pembrokeshire pleaded guilty to sections 2(1) and 3(1) of the Health and Safety at Work Act 1974. They have been fined £120,000 and ordered to pay costs of £40,000.
HSE inspector Andrew Knowles says: 'This incident, which had devastating consequences for all of those involved, was entirely preventable. Many opportunities to take action to control risk were missed, that would have prevented the incident from occurring. It is important to realise that the incident could have had even more serious consequences had the butane sphere or pipe track been damaged by the flying tank roof.'
Sentinel Midstream has submitted a license application with the US Maritime Administration to construct and operate a deepwater crude oil export facility.
The port will be located off the coast of Freeport, Texas, and will be capable of fully loading VLCC vessels. Texas GulfLink will include an onshore oil storage terminal connected by a 42-inch pipeline to a manned offshore platform 30 miles off the Gulf Coast.
From the platform the oil will be transported to two Single Point Mooring buoys to allow for VLCCs to receive two million barrels of crude oil with loading rates up to 85,000 barrels per hour.
Jeff Ballard, president and CEO, says: ‘With the submission of the license application to MARAD, Texas GulfLink has completed a major milestone towards receiving approval to construct and operate a deepwater crude oil export facility.
‘As the neutral infrastructure export solution for shippers, Texas GulfLink will provide a necessary crude oil export outlet for the expected increase in US crude oil production.’
Project financing is being provided by Cresta Fund Management. Cresta managing partner Chris Rozzell adds: ‘We are pleased with the commercial support Texas GulfLink has received and the continued strong interest from shippers who recognise the need for additional export capacity.
‘By reducing capacity constraints in Gulf Coast ports and creating an economic oil export outlet, Texas GulfLink will allow US oil producers to continue to develop and increase US oil production without potential production curtailments due to lack of export capacity.’
Check out the June/July edition of Tank Storage Magazine for an exclusive interview with Sentinel Midstream, providing more information about Texas GulfLink.
Ineos has announced plans to build three new chemical plants as part of the Jubail 2 complex in Saudi Arabia following an MoU with Saudi Aramco and Total.
A new 425,000 tonne acrylonitrile plant will use Ineos’ world leading technology and catalyst. It will be the first plant of its kind in the Middle East when it starts up in 2025.
Ineos will also build a 400,000 tonne LinearAlphaOlefin (LAO) plant and associated world-scale PolyAlphaOlefin (PAO). These units will be the most energy efficient in the world when they begin production in 2025.
Jim Ratcliffe, chairman of Ineos, says: ‘This is a major milestone for Ineos that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology that will add value and create further jobs in The Kingdom.’
The project represents a continuation of Ineos’ growth strategy following the announcement of €3 billion investment into a new plant at Antwerp, £1 billon investment across the UK, acquisitions in China and capacity increases in the US Gulf Coast, Alabama and Chocolate Bayou facilities.
Paul Overment, CEO Ineos Nitriles, says: ‘Global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites and carbon fibre. This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers’ needs wherever they are in the world.’
Joe Walton, CEO Ineos Oligomers, adds: ‘INEOS Oligomers is one of the world’s leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally.’
Construction work is on track for Stolthaven New Orleans’ expansion project, which will add 16,000 m3 of capacity to the terminal.
The first phase is scheduled to be complete by September 2019 with work on the second phase, comprising 32,000 m3 due to start shortly, with completion expected by mid-2020.
The expansion is to help accommodate growing demand for chemical storage in the US Gulf.
The terminal is located on the 80th mile marker of the Mississippi River and has 334,869 m3 of storage spread across 85 tanks. It is used for exports and imports as well as domestic distribution.
Captain Philip Watt, general manager, says: ‘We are excited about the increased demand for storage in our region and we believe we are well positions to meet customers’ needs.’
Created to mitigate the concerns that chemical terrorism is a significant threat, the Chemical Facility Anti-Terrorism Standards (CFATS) programme is the US' first regulatory programme focused specifically on high-risk chemical facilities and how to prevent them from being exploited in a terrorist attack.
Established in 2007 to address this threat to the chemical industry, the comprehensive programme, which is administered by the Department of Homeland Security though the Infrastructure Security Compliance Division, fosters security at high-risk chemical facilities.
The programme centers on a list of 322 chemicals of interest that, at specific threshold quantities or concentrations, trigger a requirement for a facility to report to CFATS.
If a facility or terminal has on site one or more of the chemicals at or above the quantities or concentrations stipulated on the list, the facility is required to submit information to the programme, where its team of assessors run it through its risk assessment methodology.
In an interview with Tank Storage Magazine David Wulf, director of infrastructure security compliance division, says that the division works closely with facilities to deliver a comprehensive site security plan.
'In that plan, the facility addresses various risk-based performance measures such as physical security, cyber security and incident response as well as measures focused on personnel surety.
'We then collect information and if a site security plan looks appropriate, we inspect the facility prior to approval. We then re-inspect the facility every 18 months or so.'
Wulf continues: 'The programme was established in response to a general sense that chemical terrorism is a significant threat.
'The CFATS programme is a non-prescriptive programme and we prioritize working with the facility to ensure they have the right site security plan. Our risk-based performance indicators are flexible according to the needs and requirements of the facility. It is a very smart 21st century framework.'
Since its creation in 2007, the progamme has continued to evolve and develop, including enhancements to its risk tiering methodology, incorporating data to get a better picture of high-risk facilities in the country and development of, and an expedited pathway to approval of the site security plan.
The programme, which covers industries including tank terminals, refining, chemical manufacturers and laboratories, was reauthorised by Congress for several more years in 2014.
Wulf adds: 'The feedback has been overwhelmingly favourable. We have broad support across a wide variety of industry stakeholders.
'Overall, the feedback has been that the CFAS programme is well suited to the task and raises the bar for security across the industry. The flexibility of the programme is really important, as is the co-operative relationship we have built with industry members and our ability to consult on options has been well-received.
'Our industry stakeholders advocate for us to Congress and we really appreciate the relationship we have with the ILTA and the support they give us.
'Chemical security is not a temporary issue. As threats evolve, the department is committed to working with stakeholders to protect the highest-risk chemical infrastructure in the US.'
Wulf will be providing an update to terminal facility security and what owner/operators need to know during the ILTA conference on June 3-4 in Houston. For more information on the event visit www.ilta.org/AOCTS.
The president of the ILTA has testified before the US Surface Transportation Board about how current railroad demurrage rules adversely affect terminal operators in the US.
In 2014, the Board issued a final rule that allowed railroads the ability to seek compensation from storage facilities for delays in loading and unloading railcars. Previously, the railroads charged demurrage fees to their shippers, not storage facilities.
The rule change made terminal operators liable for monetary penalties, even through they had no contractual relationships with the railroads, and no control over the frequency or volume with which shippers may consign railcars to the terminals or deliver them back to the railroad.
Kathryn Clay, president of the ILTA, says: 'In the last five years, since the 2014 final rule went into effect, the situation has become untenable for terminal operators [...] Railroads and terminal operators are increasingly involved in litigation over payment for demurrage incurred on railcars that they do not own and do not schedule.
'In many cases, railroads have been unable to provide further substantiation when the charges have been challenged. Terminal operators have been forced to establish and maintain management systems that duplicate existing railroad systems to track railcar activity through their facilities to attempt proper evaluations of demurrage charges. The administrative burden of these efforts has been considerable.
'To remedy the situation and restore the ability to ensure fair and transparent assessments of demurrage charges, we ask the STB to amend the 2014 ruling and remove the option of direct billing of these charges to consignees such as terminals.'
Environmental, construction and discharge permits have been secured for the 1.3 million m3 HES Hartel Tank Terminal project in the Port of Rotterdam.
The awarding of these permits represents a major step forward in the development of the liquid bulk storage terminal for the storage and transshipment of clean petroleum products and biofuels.
Contracts with contractors have been signed, construction works have started and a comprehensive funding package of limited resource project financing and equity commitments have successfully been secured.
The new terminal will be the first in the Netherlands that will be built according to the latest PGS 29 regulations for tank storage, meaning that the facility will meet very high safety and environmental standards.
Additionally, HES International will invest in an automated system to fight a tank bund fire, a project to provide shore side electricity for barges and monitoring equipment to detect the release of odorous substances at an early stage. The monitoring equipment is in direct connection with the company's own control room, making it possible to adjust operations immediately when necessary.
The facility will comprise 54 tanks with a capacity of 1.3 million m3, which will vary in size from 5,000 to 50,000 m3 and are suitable for the storage of different products. In addition to transport by pipeline, loading and discharge of products will predominately take place by vessels and barges. The terminal will have six berths for seagoing vessels ranging in size up to VLCCs with a draft of 21 meters. There will also be nine berths for inland barges in the Hudson harbor.
BP has committed to the project, with plans for a pipeline connection between the refinery and the terminal.
CVR Energy has entered into a definitive agreement for the sale of its 1.5-million-barrel crude oil storage terminal in Cushing, Oklahoma to Plains All American Pipeline for $36 million.
Additionally, the company is also evaluating potential strategic alternatives, including a potential sale. The company, which has appointed BofA Merrill Lynch as its financial advisor, intends to evaluate alternatives in combination with its ongoing focus on accomplishing its strategic objectives, prudently managing costs and operating its businesses safely and reliably.
CVR Energy does not have a defined timeline for the exploration of strategic alternatives and makes no assurances that its evaluation will result in any transaction being announced or consummated.
Dave Lamp, CVR Energy's CEO, says: 'CVR Energy is committed to maximising value for its stockholders. Both the sale of the Cushing terminal, which allowed us to derive value from an underutilised asset, and the exploration of potential strategic alternatives support this commitment.
'We are excited about the company's prospects and ability to enhance stockholder value through our initiatives, regardless of the outcome of a strategic alternative process.'
Blanca Andrés Ordax, policy officer at the European Commission, DG Energy, outlines the policies in place to achieve zero greenhouse gas emissions across the European Union and what the energy sector needs to do to meet these objectives
WHAT IS THE EUROPEAN COMMISSION’S POSITION ON DECARBONISATION?
The Commission kicked off a broader debate following the launched of its vision on decarbonisation; Clean Planet for All:long-term vision for a prosperous, modern, competitive and climate neutral economy by 20501. This Europe-wide informed debate should then allow the EU to elaborate an ambitious strategy and submit it by early 2020 to the United Nations Framework Convention on Climate Change (UNFCCC).
Three years ago, the world community pledged to contain the rise in global average temperature well below 2˚C above pre-industrial levels and to continue the action taken to limit the rise of the temperature to 1.5˚C. The European Commission is convinced that Europe must itself aim for a target of zero greenhouse gas emissions by 2050.
This long-term vision looks into the all options available for member states & sheds light on transitions across different sectors of the economy with energy playing a central role. It explains that it is possible to decarbonise industry using technologies that are proven to work, such as electrification of heat and steam production, fuel switch to biomass and hydrogen, innovative low carbon processes and Carbon Capture and Sequestration or Use. Further work is needed to reduce costs and bring these technologies to the market.
Decarbonising will imply a thorough transformation of industry, significantly modernising existing installations or completely replacing them. This investment will constitute part of the next industrial revolution. Digitalisation and automation are some of the more promising and effective avenues to increase competitiveness, leading both to efficiency gains and to greenhouse gas reductions.
Oil and petroleum products will mainly be used as feedstock for non-energy uses by 2050, in contrast to the current situation. This will have an impact on refining and petrochemical industries. Sustainable biomass has an important role to play in a climate neutral economy. A net-zero emissions economy will require increasing amounts of biomass compared to today’s consumption with, depending on what technologies are chosen, the highest projections seeing an increase in bio-energy consumption of around 80% by 2050 compared to today.
Deployment of renewable electricity also provides a major opportunity for the decarbonisation of other sectors (for example: heating, transport, industry), also through the production of e-fuels through electrolysis (for example, e-hydrogen).
The deployment of carbon capture and storage (CCS) will be necessary, especially in energy intensive industries and – in the transitional phase – for the production of carbon-free hydrogen in order to ensure that we reach the ambitious net zero carbon goal.
WHAT KEY POLICIES ARE IN PLACE THAT AFFECT THE ENERGY SECTOR?
The EU has already put in place the most advanced legislative arsenal to enable it to achieve its 2030 objectives and make the European energy sector safer, more competitive and more sustainable.
In its 4th report on the State of the Energy Union2 from April 2018, the Commission took stock of the current policies, which resulted in a comprehensive set of rules. These include, among others, the ‘Clean Energy for All Europeans’ package3, with the objective to ensure a clean and fair energy transition at all levels of the economy.
This means finding the right blend between regulatory tools and market forces, encouraging private investment on clean energy where it makes economic sense and using EU funding to stimulate investment where market forces alone are not sufficient.
The most recent EU rules set out quantified objectives and a clear ‘direction of travel’ to 2030. They raised the EU level of ambition by setting new targets for 2030, namely: to reduce greenhouse gas emissions domestically by at least 40% compared to 1990 levels; to reach a share of at least 32% in consumption of renewable energy; and to increase energy efficiency by at least 32.5%. The electricity interconnections target was set to improve security of supply by stepping up to 15 % in each member state by 2030. Binding targets for 2030 were also set to reduce carbon emissions from cars by 37.5% compared to 2021 levels; from vans by 31% compared to 2021 levels; and from lorries by 30% compared to 2019 levels.
To achieve this, European legislation must first and foremost result in vigorous action on the ground. EU member states have prepared draft national energy and climate plans that include the national policies and measures needed to achieve the 2030 and 2050 targets. These plans will be completed by 2020.
However, without further efforts on our part, the mere continuation of these policies after 2030 would result in a reduction of our emissions by 60% by 2050, which is insufficient in view of our ambitions.
WHAT WILL BE THE IMPACT OF THESE POLICIES?
The overall economic benefits of a profound transformation are positive despite the scale of additional investment required in all sectors of the economy. The EU economy is expected to more than double by 2050 compared with 1990, even if it becomes completely carbon-free. Europe has demonstrated that decarbonisation and economic growth are compatible and go hand in hand. In fact, between 1990-2017, greenhouse gas emissions dropped by 22% while the economy grew by 58% over the same period.
A trajectory consistent with the goal of zero net greenhouse gas emissions, coupled with a coherent enabling framework, is expected to have a positive impact on GDP, with estimated profits of up to 2% of GDP by 2050.
The transition will stimulate the growth of new sectors. ‘Green jobs’ already represent four million jobs in the EU. New investments in industrial upgrading, energy transformation, the circular economy, clean mobility, green and blue infrastructure and the bio-economy will generate new, local and high-quality employment opportunities.
Our analysis shows that this transition will be beneficial for the vast majority of sectors and regions in Europe, but there will unfortunately be exceptions, such as the coal mining sector and oil & gas exploration. Other sectors will have to evolve in depth and be adapted to the new economy.
The process of profoundly modernising the corresponding economy will have to be properly managed to ensure that the transition is equitable and socially acceptable to all. It is imperative that no one be left behind:
the ecological transition will have to be united, or it will not be.
WHAT MUST THE ENERGY SECTOR DO TO HELP ACHIEVE THE PARIS AGREEMENT OBJECTIVES?
Today, the major part of our energy system, which accounts for more than 75% of the EU’s greenhouse gas emissions, is based on fossil fuels. All pathways assessed imply that by mid-century this will change radically. The deployment of renewable energy will drive a large-scale electrification of the energy system, be it at the level of end-users – such as energy use in industry, buildings or transport – or to produce carbon free fuels and feedstock for industry. The power sector will thus become a central element for the transformation of other economic sectors.
Most industrial greenhouse gas emissions stem from heating purposes in various applications. These emissions can be reduced through further efficiency improvements and by switching to low and zero carbon energy sources such as renewables-based electrification, sustainable biomass, synthetic fuels or hydrogen.
Around a quarter of industrial emissions consists of processrelated emissions (i.e., emissions from chemical reactions other than combustion), which are more difficult to reduce. Cutting these emissions will require genuine process innovation or the application of carbon capture and storage.
The transport sector currently relies largely on fossil fuels. Achieving deep emissions reductions will require an integrated system approach promoting (i) overall vehicle efficiency, low- and zero emission vehicles and infrastructure; (ii) a long-term switch to alternative and net-zero carbon fuels for transport; (iii) increased efficiency of the transport system. There is no single fuel solution for the future of low-carbon mobility – all main alternative fuel options will be needed. Changes in behaviour and consumer choice to shift from private transportation to low-carbon public transport, shared mobility and zero-carbon mobility (biking, walking) are also key.
Andrés Ordax will be talking more about the European Commission’s position on decarbonisation during the FETSA conference on June 12 in Tarragona, Spain. For more information visit the event website.