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Latest storage news


Terminal News
November 15, 2017
Mobil Oil New Zealand plans to build two fuel storage tanks to improve fuel supply capacity for the South Island.The tanks at its fuel terminal in Lyttelton will replace those damaged by a 2014 landslide at Mobil's Naval Point facility. They will be located adjacent to Mobil's existing terminal at George Seymour Quay and will store petrol and diesel...

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Mobil Oil New Zealand plans to build two fuel storage tanks to improve fuel supply capacity for the South Island.

The tanks at its fuel terminal in Lyttelton will replace those damaged by a 2014 landslide at Mobil's Naval Point facility. They will be located adjacent to Mobil's existing terminal at George Seymour Quay and will store petrol and diesel. They are expected to be complete by early 2019.

The work is the latest in several recent major investments by the company to enhance its fuel product offerings to customers. This includes work to upgrade its bulk fuels terminal at Mount Manganui.

Andrew McNaught, country manager for Mobil, says: 'Construction of new tanks will resort fuel storage capacity at our Lyttelton operation, which, along with the Lyttelton-Woolston pipeline and Woolston Terminal, is an important part of the fuel supply chain in the South Island.

'This project represents a significant investment in New Zealand's fuel supply chain and demonstrates our commitment to the local market.'



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Terminal News
November 14, 2017
US to become undisputed global oil leader
The global energy sector will be significantly reshaped over the next 20 years as the US is set to become the undisputed global oil and gas leader.The International Energy Agency's World Energy Outlook 2017 sets out four major trends that are 'profoundly reshaping' the energy sector: the resurgence in oil and gas production from the US, significant declines in the cost of renewables, the share of electricity in the energy mix is growing and China's move towards a cleaner growth mode...

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The global energy sector will be significantly reshaped over the next 20 years as the US is set to become the undisputed global oil and gas leader.

The International Energy Agency's World Energy Outlook 2017 sets out four major trends that are 'profoundly reshaping' the energy sector: the resurgence in oil and gas production from the US, significant declines in the cost of renewables, the share of electricity in the energy mix is growing and China's move towards a cleaner growth mode.

These four themes are altering the face of the global energy system and upending traditional ways of meeting energy demand, according to the document.

The document sets out that over the next 25 years, the world's growing energy needs will be met firstly by renewables and natural gas, as plummeting costs turn solar power into the cheapest source of new electricity generation.

It says that rising oil demand will slow down, but is not reversed before 2040, despite the steep rise of electric car sales.

Dr Fatih Birol, executive director for the IEA, says: 'These are extraordinary times for global energy, and they are reflected in what I believe is an extraordinary WEO.

'Electric vehicles are in the fast lane as a result of government support and declining battery costs but it is far too early to write the obituary of oil, as growth for trucks, petrochemicals, shipping and aviation keep pushing demand higher.

'The US becomes the undisputed leader for oil and gas production for decades, which represents a major upheaval for international market dynamics.'

The shale oil and gas revolution in the US continues thanks to the ability of producers to unlock new resources in a cost-effective way. By the mid-2020s, the US is projected to become the world's largest LNG exporter and a net oil exporter by the end of that decade.

The report says this is having a major impact on oil and gas markets, challenging suppliers and causing a major reorientation of global trade flows, with consumers in Asia accounting for more than 70% of global oil and gas imports by 2040.

And while oil demand continues to grow, it is at a steadily decreasing pace due to fuel efficiency and rising electrification bringing a peak in oil used for passenger cars. Other sectors however, such as petrochemicals, aviation and shipping, are driving up oil demand to 105 million barrels a day by 2040.

A full analysis of the report will be included in the December/January 2018 edition of Tank Storage Magazine.



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Terminal News
November 14, 2017
New US midstream company created
Blackline Partners and TPG Sixth Street Partners have created a new JV aimed at acquiring and developing oil and gas midstream infrastructure assets.The new company, Blackline Midstream, has acquired SEA-3, owner of New England's propane storage and distribution terminal in New Hampshire from Trammo...

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Blackline Partners and TPG Sixth Street Partners have created a new JV aimed at acquiring and developing oil and gas midstream infrastructure assets.

The new company, Blackline Midstream, has acquired SEA-3, owner of New England's propane storage and distribution terminal in New Hampshire from Trammo.

The facility consists of 530,000 barrels of propane storage, a five-lane 24/7 truck loading rack, an ocean-access marine vessel receiving and loading dock and a six spot rail receiving rack. Additionally, SEA-3 has a fully approved upgrade project which will significantly increase the rail unloading capacity of the terminal, giving it access to both domestic and international markets.

Mike Day, CEO of Blackline Partners, says: 'Blackline's deeply experienced operations management team, combined with TSSP's financial strength and expertise position us to integrate SEA-3 into a strong, well-equipped midstream growth platform.

'We will immediately commence the rail expansion project at Newington in order to position SEA-3 as the most flexible and reliable propane supply terminal in the northeast US.'

David Herr, VP of marketing at Blackline, who will be managing product commercial operations for Blackline Midstream, adds: 'With the rail expansion project, we will be able to remain competitive under any market supply scenario.

'All existing commercial agreements will be carried forward, and customers of the terminal will experience a seamless transition following the acquisition.'



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Terminal News
November 10, 2017
Saudi Aramco inks oil and gas megaprojects
Saudi Aramco has agreed to a slate of oil and gas megaprojects, including new pipelines, gas plants and offshore oil fields, valued at nearly $4.5 billion.Eight agreements were signed with several oil and gas service contractors to expand gas production and localise domestic content...

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Saudi Aramco has agreed to a slate of oil and gas megaprojects, including new pipelines, gas plants and offshore oil fields, valued at nearly $4.5 billion.

Eight agreements were signed with several oil and gas service contractors to expand gas production and localise domestic content.

These projects include the Free Flow Pipeline Contract, which allows for an early start of the Haradh Gas Increment Programme. It comprises the installation of around 450 kilometres of pipeline network by early 2019. Another project comprises the facilities to process 600 MBCD of Arab heavy crude oil from Zuluf offshore field. This includes water injection and oil wellhead platforms, tie-in platforms, trunk lines and flowlines in addition to new processing facilities.

The crude will then be transported to Ju'aymah terminal via new downstream pipelines. The separated gas and condensate streams will be transported to the proposed Tanajib Gas Plant via new pipelines.

Amin H. Nasser, Saudi Aramco president and CEO, says: 'These agreements we signed are part of our natural gas expansion, as we add about one billion standard cubic feet per day.

'These new supplies will help reduce domestic reliance on liquid fuels for power generation, enable increased liquids exports, provide feedstock to petrochemical industries, and reduce carbon emissions.



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Terminal News
November 9, 2017
Contango departure affects Odfjell financials
Odfjell Terminals Rotterdam
Odfjell Terminals has recorded a lower EBITDA in its third quarter due to lower storage revenues and the effects of Hurricane Harvey.The operator delivered an EBITDA of $8.7 million in the third quarter compared to $10.3 million in the previous quarter...

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Odfjell Terminals Rotterdam

Odfjell Terminals has recorded a lower EBITDA in its third quarter due to lower storage revenues and the effects of Hurricane Harvey.

The operator delivered an EBITDA of $8.7 million in the third quarter compared to $10.3 million in the previous quarter. The reduction is due to lower storage revenues, primarily in Rotterdam, as a result of the departure of 'contango customers' and the disruption at its Houston facility following Hurricane Harvey.

The average occupancy rate of commercially available capacity was 86%, compared to 92% in the last quarter as a result of the contango effect in Rotterdam.

The company has finalised the basic engineering and has all the required permits in place for the first independent ethylene export facility in the US, based in Houston. A final investment decision is expected in the first quarter of 2018.

Additionally, its new facility in Tianjin, China, has received it final permit to operate, and the opening of the port for foreign vessels is expected in the fourth quarter. Its value creation programme in Rotterdam is progressing and PID production is stable, at expected levels.

Kristian Mørch, CEO of Odfjell, says: 'The third quarter was a challenging quarter for our tanker and terminal divisions. Our balance sheet remains robust and our competitiveness continues to increase, so we are positioned to benefit once our markets recover. The sale of our Singapore terminal, in line with our strategy, will result in a significant gain.'



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Terminal News
November 9, 2017
Expansion planned at Mexican petroleum transload terminal
Savage Companies plans to significantly expand the capabilities of its new petroleum transload terminal in central Mexico in 2018. Operations at the new facility, run by a subsidiary of Savage, will start in January 2018, with expansion plans expected later in the year...

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Savage Companies plans to significantly expand the capabilities of its new petroleum transload terminal in central Mexico in 2018.

Operations at the new facility, run by a subsidiary of Savage, will start in January 2018, with expansion plans expected later in the year. The facility, located near the city of Querétaro, is served by the Kansas City Southern (KCS) de Mexico railroad and provide access to strategic ports and US based refinery centres.

The facility will provide a location for transferring and storing refined petroleum products. It will initially serve manifest rail volumes, transferring products directly from railcars into trucks.

Savage plans to add tank storage and fixed facilities for high-speed rail unloading, product blending and truck loading. At full build out, the terminal will handle unit train volumes.

Kirk Aubry, Savage president and CEO, says: ‘We are excited to leverage our team’s experience operating transload facilities and rail operations to reduce the logistics costs of moving and managing refined petroleum products in Mexico.’

Patrick J. Ottensmeyer, KCS president and CEO, adds: ‘We believe this terminal will facilitate additional refined product exports from US Gulf Coast refineries in support of Mexico energy reform. Savage’s experience and commitment to excellence gives us the confidence that this new refined products terminal will provide additional market options in support of Mexico’s new energy infrastructure.’



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Terminal News
November 9, 2017
TransMontaigne buys West Coast terminals from Plains
TransMontaigne Partners will purchase the Martinez Terminal and Richmond Terminal from an affiliate of Plains All American Pipeline for $275 million.The acquisition by a subsidiary of TransMontaigne expands its storage and terminalling footprint in the San Francisco Bay Area refining complex...

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TransMontaigne Partners will purchase the Martinez Terminal and Richmond Terminal from an affiliate of Plains All American Pipeline for $275 million.

The acquisition by a subsidiary of TransMontaigne expands its storage and terminalling footprint in the San Francisco Bay Area refining complex. It is expected to close at the beginning of 2018.

The facilities include two waterborne refined product and crude oil terminals, comprising a total of 64 storage tanks with 5.4 million barrels of storage capacity. They have extensive connectivity to domestic and international refined product and crude oil markets through significant marine, pipeline, truck and rail capabilities.

They are supported by multi-year, fee-based agreements with contract terms of up to five years.

Fred Boutin, CEO of TransMontaigne Partners, says: 'We believe that this transaction strengthens our position as one of the leading refined products terminalling and transportation service providers in the country.

'The West Coast facilities are strategically located within the San Francisco Bay area refining complex, one of the largest refining complexes in North America.

'This acquisition, combined with the organic growth we have executed this year, supports and extends our commitment to deliver stable and growing distributions over the long term.'



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Terminal News
November 9, 2017
Fujairah: Oil product stocks down 4.2% on week
Total refined product stocks at the UAE port of Fujairah were 15.230 million barrels in the week to October 30, down 4.2% from the previous week, according to data from the Fujairah Energy Data Committee (FEDCom).Total stocks sank to a new record low for the second week in a row, as the markets stayed in backwardation, and rising prices gave an incentive to sell quickly, Platts Analytics said...

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Total refined product stocks at the UAE port of Fujairah were 15.230 million barrels in the week to October 30, down 4.2% from the previous week, according to data from the Fujairah Energy Data Committee (FEDCom).

Total stocks sank to a new record low for the second week in a row, as the markets stayed in backwardation, and rising prices gave an incentive to sell quickly, Platts Analytics said.

Stocks of light distillates diverged from the general downward trend, however, rising by 13.6% week on week to 4.845 million barrels. The increase is in part down to strong demand from the Middle East, which has drawn in material from Asia. Some Indian products, which would normally find a home in Asia, have been drawn to the Middle East instead, further restricting supply.

The opposite was true for stocks of middle distillates, which fell by 22.3% week on week to a record low 1.744 million barrels. There is no longer any arbitrage to move gasoil to Europe from Asia, but volumes from the Middle East continued to make their way westward, Platts Analytics said.

Diesel and gasoil stocks in Europe's Amsterdam-Rotterdam-Antwerp hub fell by 3% to 2.171 million mt in the week to Wednesday, their lowest since June 2014, PJK International data showed. Additional spot supplies of gasoil have emerged as the bulk of ongoing refinery maintenance in both the Middle East and Asia will soon be completed.

Stocks of heavy distillates and residues also fell by 7.9% to 8.641 million barrels, an eight-month low. Fuel oil is currently backwardated in Singapore, meaning traders in ARA and the Middle East have little incentive to keep volumes in storage, Platts Analytics said.

Power demand is also high in Iran due to a recovery of the economy, reducing exports from Iran. With Middle East premiums high, flows to Singapore are likely to slow down in the coming weeks, Platts Analytics said.



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Terminal News
November 8, 2017
OPEC increases oil demand forecast
OPEC has revised its long-term oil demand outlook upwards by 1.7 million barrels a day as oil is set to dominate the energy mix in the future.In its 2017 World Oil Outlook OPEC says that total primary energy demand is set to increase by 35% in the period to 2040 and that oil is expected to remain the fuel with the largest share in the energy mix through to 2040...

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OPEC has revised its long-term oil demand outlook upwards by 1.7 million barrels a day as oil is set to dominate the energy mix in the future.

In its 2017 World Oil Outlook OPEC says that total primary energy demand is set to increase by 35% in the period to 2040 and that oil is expected to remain the fuel with the largest share in the energy mix through to 2040.

The document sets out that long-term oil demand has increased by 1.7 million barrels a day compared to its 2016 counterpart, with total demand sitting at over 111 million barrels a day by 2040. This is despite the talk of relying more on alternative forms of energy, from renewable fuels to the growing trend of electric vehicles.

In fact, long-term oil demand will come mainly from road transportation, making up 5.4 million barrels per day, followed by petrochemicals and then the aviation sector. However, OPEC does recognise various international efforts to increase the use of electric vehicles into consumer behaviours. It says that in the passenger car segment, electric vehicles will represent 12% of the car fleet by 2040.

Additionally, the international organisation does not expect to hit peak oil demand over the forecast period to 2040. And around half of the estimated refining capacity additions will be focused in the booming Asia-Pacific region, which is projected to add 9.5 million barrels per day by 2040.

OPEC Secretary General His Excellency Mohammad Sanusi Barkindo, says: 'The past year has been an historic one for OPEC and the global oil industry. Since publication of the World Oil Outlook in 2016, the oil market has undergone a fundamental change. It has been a period where the rebalancing of the global oil market has gathered vital momentum, buoyed by a number of important factors.

'We need to remember that the short, medium and long-terms are all intertwined, which is underscored in the World Oil Outlook 2017.'



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Terminal News
November 7, 2017
Investment analysis for oil terminals
Channoil Consulting's Charles Daly provides an overview of some of the key factors investors look for when considering a terminal transaction The logistics of the oil industry depend, to a material extent, on the location and capacity of oil terminals...

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Channoil Consulting's Charles Daly provides an overview of some of the key factors investors look for when considering a terminal transaction

The logistics of the oil industry depend, to a material extent, on the location and capacity of oil terminals.

These can be sea-fed by oil tankers or inland and fed by block train, road tanker or pipeline. No matter where they are located they have a value in the supply chain. These installations therefore have an intrinsic value both to the current owner and to potential entrants into the supply chain, either as traders or marketers. Nowadays we have seen this interest extend to investment funds and pension funds.

In this process the financial advisors and the technical and commercial advisors will be involved in establishing a fair value for the target.

Location

Most people will have heard the expression 'location, location, location' as applied to the purchase of residential property. This applies equally, if not more so, for oil terminals. In supply chain logistics for other businesses you will note that location of distribution warehouses is critical to the overall profitability of the whole concern. In oil logistics a terminal may not be as easily sited strategically, primarily due to environmental concerns and the desire to keep oil installations away from centres of high population density.



Size

The size of the terminal is critical to the valuation. If the terminal is for local market distribution, where there is usually no spare capacity to allow for growth, an evaluation of the potential for acquiring additional land must be made. A terminal that is only used for supplying a given market has limited flexibility and therefore can only be evaluated in the context of the local market. The durability of that demand therefore governs the value.

For an independently operated international warehouse, the size becomes more of an issue. Today cargo sizes have become bigger and bulk building and bulk breaking are an important function of an oil terminal. Given this, in order to satisfy the demand of more than one customer, such a terminal will need to be of a minimum size. Current sizing of terminals is from about 350,000 m3 to 1,200,000 m3. This size of terminal needs enormous tracts of land and waterfront. To give you an example, a terminal of about 350,000 m3 will need a minimum land area of 10-15 hectare (25-38 acres), and at least three or four jetties.

Jetty

A coastal terminal will require jetty capacity based on the estimated utilisation. If it is to be a local market depot, then there will be only a one-way traffic in by sea and out by rail or road tanker or even pipeline. There is an exception for terminals that supply their markets further inland by river barges, since these will require barge berths to operate.

If the terminal is large, such as at a refinery or an independent international warehouse, then there will be a number of jetties of different sizes for the various services.

The jetties are the aortas of the terminal and any restriction here would diminish the value considerably.

Market

The size of the current and forecast market is one of the most critical pieces of information required to assess the value of an oil terminal.

Age

The age of the terminal will naturally have an impact on the value. Age will be reflected in the amount of pollution in the land due to spillage and leakage in the past. The other aspect of age will be the corrosion to the tank and pipeline walls. Petroleum products tend to have relatively high acidity content; older terminals tend to suffer correspondingly higher levels of corrosion due to higher sulphur contents in the past. Ultrasound testing measures the thickness of the tank and pipe walls and will therefore give a fairly accurate estimate of the useful life of the terminal.

Health & safety

Following on from the age of the terminal, the safety equipment in place would probably need upgrading in the case of an old terminal. All terminals must meet the appropriate legislation in the territory they are located in. Although regulations may be less onerous in certain countries, it usually behoves the terminal owner to meet the most stringent regulations existing in the international oil industry, as any lesser standard will make them unacceptable to the major users, thus giving limited flexibility for resale and use.

Environmental issues

As stated before, oil terminals are usually sited as far away from residential areas as is possible. There are two reasons for this, one is the obvious one of fire hazard and the other is noxious smells. Oil terminals are usually subject to an operating licence and this licence must be renewed periodically.

Daly will be talking more about what investors looks for in a terminal on the second morning of the Tank Storage Germany conference on November 29 and 30. For more information, visit www.tankstoragegermany.com.



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Terminal News
November 6, 2017
Royal Dutch Shell has completed the sale of its Gabon onshore oil and gas interests, including pipeline and storage assets, to Assala Energy for $628 million.The transaction comprises all of Shell's onshore oil and gas operations including five operated fields, four non-operated fields the onshore pipeline system from Rabi to Gamba and the Gamba Southern Export terminal...

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Royal Dutch Shell has completed the sale of its Gabon onshore oil and gas interests, including pipeline and storage assets, to Assala Energy for $628 million.

The transaction comprises all of Shell's onshore oil and gas operations including five operated fields, four non-operated fields the onshore pipeline system from Rabi to Gamba and the Gamba Southern Export terminal.

Shell onshore in Gabon produced around 41,000 barrels of oil equivalent per day in 2016.

Shell says that the completion of this deal is in line with Shell's drive to simplify the upstream portfolio and re-shape the company into a world class investment.



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Terminal News
November 6, 2017
Vopak’s financials affected by lower occupancy rates
Vopak has experienced a decrease in its third quarter EBITDA figures as a result of lower occupancy rates.The company reports that its EBITA decreased by 9% to $571 million, in line with its previous guidance of a 5-10% lower 2017 EBITDA.However, its occupancy rate of 90% is supported by sound business drivers in all the product-market segments throughout its network...

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Vopak has experienced a decrease in its third quarter EBITDA figures as a result of lower occupancy rates.

The company reports that its EBITA decreased by 9% to $571 million, in line with its previous guidance of a 5-10% lower 2017 EBITDA.

However, its occupancy rate of 90% is supported by sound business drivers in all the product-market segments throughout its network. It says in its third quarter financials that the difference with the high 2016 occupancy rate of 94% is primarily due to a less favourable oil market structure.

Compared to the second quarter of 2017, Vopak's third quarter EBITDA decreased by 8%, mainly driven by lower revenues in Asia and high other expenses, among others related to jetty damage in Singapore. Revenues in the Netherlands remained stable.

The majority of the current projects currently under construction, amounting to 3.2 million m3, are backed by commercial storage contracts, and will start to contribute positively during 2019.

It says that the successful realisation of its efficiency programme in the 2017-2019 period will help reduce its future cost base by at least $25 million.



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Terminal News
November 3, 2017
Magellan remains focused on expansion opportunities as it reports an increase in its third quarter financials.The company reports a net income of $198.5 million compared to $194.6 million in the third quarter of 2016. During this quarter the company's operations in Houston and Corpus Christi were disrupted due to Hurricane Harvey...

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Magellan remains focused on expansion opportunities as it reports an increase in its third quarter financials.

The company reports a net income of $198.5 million compared to $194.6 million in the third quarter of 2016. During this quarter the company's operations in Houston and Corpus Christi were disrupted due to Hurricane Harvey. No significant asset damage occurred and the impacted facilities are now operational.

Michael Mears, CEO, says: 'Magellan generated financial results during the third quarter of 2017 that were consistent with our expectations despite Hurricane Harvey, which negatively impacted the operations of each of our business segments for a period of time.

'Further, the third quarter of 2017 was also notable because we launched three new large-scale construction projects for fee-based refined products and crude oil pipeline and storage assets that increased our expansion capital spending by $600 million, helping to solidify Magellan's future growth.'

Based on the progress of expansion projects already underway, the company expected to spend $600 million in 2017, $800 million in 2018 and $350 in 2019.

These estimates includes its projects to expand its Pasadena, Texas marine storage terminal, to build a crude oil and condensate pipeline from the Delaware Basin to the origin of the Longhorn pipeline in Crane, Texas and to expand its refined products pipeline system in Texas.

The estimates also include the construction of an incremental 1.5 million barrels of crude oil storage in Cushing, Oklahoma and Corpus Christi on a combined basis, which is supported by customer commitments.

The company also continued to evaluate in excess of $500 million of potential organic growth projects as well as acquisition opportunities.



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Terminal News
November 2, 2017
Ineos acquires Forties Pipeline System from BP
Ineos has completed the purchase of the Forties Pipeline System (FPS), including associated pipelines, plants and storage terminals, from BP.Thw 235-mile pipeline system linked 85 North Sea oil and gas assets to the UK mainland as well as to the Ineos site in Grangemouth, Scotland...

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Ineos has completed the purchase of the Forties Pipeline System (FPS), including associated pipelines, plants and storage terminals, from BP.

Thw 235-mile pipeline system linked 85 North Sea oil and gas assets to the UK mainland as well as to the Ineos site in Grangemouth, Scotland. This system delivers almost 40% of the UK's North Sea oil and gas production.

Ineos now owns and operates FPS, the Kinneil gas processing plant and oil terminal, the Dalmeny storage and export facility, sites at Aberdeen, the Forties Unity Platform and associated infrastructure.

Andrew Gardner, CEO of Ineos FPS says: 'Our acquisition of the Forties Pipeline System and associated assets together with its highly skilled workforce is significant and strategic.

'It demonstrates Ineos' commitment to securing a competitive long-term future for this critical piece of oil and gas infrastructure and provides the platform to potential future offshore Ineos investments.'

This deal consolidates the company's position at a top ten company in the North Sea.



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Terminal News
November 2, 2017
American Midstream acquires Southcross storage assets
American Midstream Partners has agreed to acquire certain assets from Southcross Holdings including pipelines and storage facilities.Additionally, American Midstream has proposed to merge Southcross Energy Partners into a wholly owned subsidiary of American Midstream Partners...

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American Midstream Partners has agreed to acquire certain assets from Southcross Holdings including pipelines and storage facilities.

Additionally, American Midstream has proposed to merge Southcross Energy Partners into a wholly owned subsidiary of American Midstream Partners. These agreements form two separate transactions totalling $815 million.

Once complete, American Midstream will own and operate integrated midstream infrastructure including:

- 8,000 miles of crude, natural gas and NGL pipelines

- Ten processing plants with more than 1.0 Bcf/d of capacity

- 6.7 million barrels of above-ground liquids storage capacity

Lynn L. Bourdon III, chairman, president, CEO of American Midstream, says: 'This transaction accelerates our transformation into a fully integrated gathering, processing and transmission company focused in select core areas.

'The addition of the Southcross assets allows us to capture the full midstream value chain in the very prolific Eagle Ford basin. The transaction represents a unique opportunity to expand our onshore gathering, processing and transmission services, linking supplies from the economically attractive Eagle Ford shale to high demand growth markets along the Gulf Coast.'



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Terminal News
November 2, 2017
Plains and CVR Refining form pipeline JV
CVR Refining and Plains All American Pipeline have formed a joint venture to acquire a 100-mile pipeline system.The joint venture – Midway Pipeline – acquired the Cushing to Broome pipeline system from Plains. The pipeline connected CVR Refining's Coffeyville, Kansas, refinery to the Cushing hub...

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CVR Refining and Plains All American Pipeline have formed a joint venture to acquire a 100-mile pipeline system.

The joint venture – Midway Pipeline – acquired the Cushing to Broome pipeline system from Plains. The pipeline connected CVR Refining's Coffeyville, Kansas, refinery to the Cushing hub.

Midway will contract with Plains to continue its role as operator of the pipeline.

Separately, CVR and Plains announced that CVR will acquire the Cushing to Ellis crude oil pipeline system from Plains. This system helps link CVR's 70,000 barrel-per-calendar day Wynnewood, Oklahoma refinery to Cushing. This acquisition is expected to close in the fourth quarter of 2017.

Jack Lipinski, CEO of CVR Refining, says: 'These acquisitions ensure long-term access to Cushing-based crude oil for our Coffeyville and Wynnewood refineries, securing our mid-continent edge of sourcing price-advantaged crude.'



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Terminal News
November 2, 2017
Fujairah: Oil product stocks down 1.1% on week
Total refined product stocks at the UAE port of Fujairah stood at 15.895 million barrels in the week to October 30, down 1.1% from the previous week, according to data from the Fujairah Energy Data Committee (FEDCom).While in absolute terms the week on week change was relatively small, stocks of light and middle distillates fell to their lowest levels since the start of Fujairah stocks reporting, S&P Global Platts Analytics said in a report...

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Total refined product stocks at the UAE port of Fujairah stood at 15.895 million barrels in the week to October 30, down 1.1% from the previous week, according to data from the Fujairah Energy Data Committee (FEDCom).

While in absolute terms the week on week change was relatively small, stocks of light and middle distillates fell to their lowest levels since the start of Fujairah stocks reporting, S&P Global Platts Analytics said in a report.

Stocks of light distillates fell by 2.5% week on week to 4.266 million barrels, the data showed. The petrol market is resisting the usual seasonal demand slump in the fourth quarter due to healthy regional demand, according to Platts Analytics. European barrels, which usually flow to the Middle East, have instead been going to West Africa due to very healthy demand there. In Asia, recent tenders from Indonesia, Vietnam and Sri Lanka have added to regional demand.

Stocks of middle distillates fell by 9.5% week on week to 2.245 million barrels, the data showed.

Stock levels remained below 3 million barrels for the seventh week in a row, although supply fundamentals could lean towards more supply and higher stocks levels over the next few months, Platts Analytics said.

Additional spot supplies of gasoil have emerged as the bulk of current refinery maintenance in both the Middle East and Asia will soon be completed, it added. Stocks of heavy distillates and residues rose by 1.8% to 9.384 million barrels, but remained below 10 million barrels for a fifth consecutive week.

The fourth quarter typically sees a pickup in regional bunker demand, but demand in Fujairah is likely down year on year due to regional politics and reduced regional crude exports due to OPEC production cuts, Platts Analytics said.



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