Latest storage news
Clear Creek Midstream has received an initial venture capital commitment of $300 million from EnCap Flatrock Midstream.
Established in late 2018, Clear Creek is an independent energy company focused on the development of midstream infrastructure for oil and gas producers working in shale plays across North America. The company is pursuing organic, greenfield projects and select acquisition opportunities.
Clear Creek CEO Rick Van Eyk says: 'Our experience is a great fit with EnCap Flatrock's financial strength and approach to creating value in the midstream sector. The team at EnCap Flatrock understand that midstream is a service business. Success depends on strong producer relationships, an innovative approach to problem-solving and developing reliable, cost-effective solutions that ensure delivery to premium markets.'
The US is projected to export more energy than it imports by 2020 as crude oil, natural gas and natural gas plant liquids production outpaces consumption.
According to the US Energy Information Administration, the US began exporting more natural gas than it imports in 2017 and is projected to export more petroleum and other liquids than it imports within the decade.
Since 1953, the US has imported more energy than it exports on an annual basis when trade volumes were much smaller. Since then, when imports of energy totalled 2.3 quadrillion British thermal units, gross energy imports generally grew, reaching a peak of 35 quadrillion Btu in 2005.
Gross energy exports were as low as four quadrillion Btu as recently as 2002 but have since risen to more than 20 quadrillion Btu in 2018, mainly due to changes in liquid fuels and natural gas trade.
EIA's projected changes in net energy trade are driven mostly by evolving trade flows of liquid fuels and natural gas. According to the administration's reference case in its Annual Energy Outlook, the US exports more petroleum and other liquids than it imports after 2020 as US crude oil production increases and domestic consumption of petroleum products decreases.
Near the end of the projection period, the US returns to importing more petroleum and other liquids than it exports due to increasing domestic gasoline consumption and falling domestic crude oil production in those years.
In the AEO reference case, which takes into account current laws and regulations, the US begins exporting more energy than it imports on an annual basis in 2020 and maintains that status through 2050.
A new liquids storage, terminalling and logistics company has been created by Hartree Partners and funds managed by Oaktree Capital Management.
Hartree Bulk Storage has been created with an initial equity commitment of up to $735 million. The new company will capitalise on the strong global demand for bulk liquids storage infrastructure via mergers & acquisitions, greenfield projects and joint venture partnerships.
The platform will provide independent solutions to refiners, petrochemical manufacturers, marketers and producers of crude oil, refined products, NGLs and other bulk liquids.
Hartree and Oaktree began their partnership in early 2015, when Oaktree funds purchased Hess Corporation's stake in Hess Energy Trading Company. Hartree Bulk Storage will develop safe and reliable storage solutions that offer flexible, multimodal connectivity.
Guy Merison, Hartree's co-founder, says: 'Hartree's deep understanding of the energy supply chain and local market dynamics, coupled with its ability to identify future market trends, will guide the ability of Hartree Bulk Storage to provide superior connectivity and optionality to its customers.
'Over the past two decades, Hartree has consistently utilised storage solutions for its trading business, and we believe that in partnership with Oaktree funds, Hartree Bulk Storage can develop a network of storage facilities with strategic importance to its customers.'
Rajath Shourie, managing director at Oaktree, adds: 'We are excited to build an integrated bulk storage and logistics solutions provider that leverages the unique market perspective of a commodity merchant.'
ADNOC has signed two strategic equity partnerships with ENI and OMV covering ADNOC Refining and a new trading joint venture.
In one of the largest ever refinery transactions Eni and OMV will acquire 20% and 15% shares in ADNOC Refining respectively, with ADNOC owning the remaining 65%.
The agreement values ADNOC Refining, which has a total refining capacity of 922,000 barrels per day at an enterprise value of $19.3 billion.
Additionally, as part of the agreement, the partners will also establish a trading joint venture, in which Eni and OMV will own 20% and 15% of the shares respectively.
The transaction reflects the scale, quality and growth potential of ADNOC Refining's assets, coupled with an advantageous location from which to supply markets in Africa, Asia and Europe.
Further value will be created from the new global trading joint venture, which, once established, will be an international exporter of ADNOC Refining's products, with export volumes equivalent to 70% of throughput. Domestic supply within the UAE will continue to be managed by ADNOC.
His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, says: 'We are delighted to partner with Eni and OMV in our refining business and the new trading company. Such partnerships follow our leadership's wise guidance to unlock and drive greater value across our business.
'These innovative partnerships will support our ambition of becoming an international downstream leader with the flexibility to respond quickly to shifting market needs and dynamics. They will help enable our objective of unlocking even more value from every barrel of oil we produce.'
The three partners have committed to substantial growth plans for ADNOC Refining in the short to mid-term. They have also agreed to a comprehensive capital allocation framework to achieve self-funded growth, paired with an attractive dividend policy.
The partnerships will support ADNOC as it expands refining and petrochemical operations at Ruwais and secures greater downstream global market share.
Claudio Descalzi, CEO of Eni, says: 'This transaction, which allows us to enter the UAE's downstream sector and represents a 35% increase in Eni's global refining capacity, is in line with our announced strategy to make Eni's overall portfolio more geographically diversified, more balanced along the value chain, more efficient and more resilient to cope with market volatility.'
The trading joint venture will be incorporated at Abu Dhabi Global Markets. Physical and derivative trading will likely begin as early as 2020 when all necessary processes, procedures and system are in place. The venture will help guide ADNOC Refining's activity and operational decision-making, ensuring ADNOC secures the best possible value from its refining and trading activity. The joint venture will expand its global presence over time.
Moda Midstream has announced plans to expand its dock capabilities and storage capacity at the Moda Ingleside Energy Centre.
The expansion programme comprises the construction of an additional 10 million barrels of crude oil storage as well as expansion of its docks. Nearly all of the new storage tanks will be placed in service throughout 2019, and the expansion will be completed by the second quarter of 2020.
Additionally, Moda has begun the construction of a new manifold and interterminal pipeline to allow the facility to receive direct 'basin to berth' deliveries from the Cactus II Pipeline, Gray Oak Pipeline and Epic Crude Oil Pipeline. These upgrades will be completed prior to the pipelines' expected in-service dates.
Once the expansion programme is complete the facility will have combined vessel loading rates of 160,000 barrels per hour and improved berthing efficiencies. Additionally, the Corpus Christi Ship Channel improvement project, when completed, will increase the depth from 47 feet below mean lower low water to 54 feet below mean lower low water, which will allow for the loading of increased volumes on VLCCs at the facility.
The company recently commissioned upgrades to berth 2A at the facility in Ingleside, Texas, to enable the loading of VLCCs. This upgrade provides existing and potential customers the ability to safely and cost-effectively load VLCCs at rates of up to 80,000 barrels per hour.
President and CEO Bo McCall says: 'As the gateway to foreign markets for Permian and Eagle Ford crude production, MIEC has seen very strong customer demand, and we have had tremendous success in securing new customer commitments to support our ongoing expansion.
'Based on current customer interest, we are evaluating additional expansion phases that would increase available storage and waterfront capabilities at our 900-acre site, allowing us to deliver exceptional service and reliability to new and existing customers.'
Rosneft has reached an agreement with the Ministry of Energy and Water of the Lebanon Republic – Lebanon Oil Installations to take on the operational management of an oil products storage terminal in Tripoli.
The agreement, which means that Rosneft will take on management of the facility for 20 years will also consider the rehabilitation and expansion of the facility.
Igor Sechin, CEO of Rosneft, says: 'The implementation of projects in the Middle East is one of the company's strategic development directions.
'The agreement will allow Rosneft to strengthen its presence in the region and improve the efficiency of its existing integrated supply chains and also will contribute to the development of the company's international trading.
'We hope to further expand co-operation with Lebanon and to implement other potential projects in the oil and gas sector in this country.'
Elengy is preparing to put access capacities at its Fos Tonkin LNG terminal up for sale for the period 2021 to 2030.
In a dynamic LNG market, the company will offer its potential customers several types of services, including the conventional unloading of Medmax-type LNG tankers (vessel with a capacity of 75,000 m3 of LNG), the reloading of micro-tankers for LNG bunkering needs, as well as the LNG trucks loading.
The sale will be launched in February 2019.
Detailed information concerning the services offered will be provided in the information memorandum at the opening of the sale.
Elengy owns the Fos Tonkin LNG terminal in Bouches-du- Rhône, France and is a 72.5% shareholder in Fosmax LNG, owner of the Fos Cavaou LNG terminal.
Tallgrass Energy and Kinder Morgan will jointly increase existing crude oil takeaway capacity in the Powder River and Denver-Julesburg basins as well as add capacity to the Williston Basin and parts of Western Canada.
The agreement comprises existing and newly constructed assets. Tallgrass will contribute its Pony Express Pipeline System and Kinder Morgan will contribute portions of its Wyoming Intrastate Company and Cheyenne Plains Gas Pipeline and begin the process of conversion to crude oil service. In addition, 200 miles of new pipeline will be constructed to provide crude oil deliveries into Cushing, Oklahoma.
The combined pipeline system is expected to be capable of delivering up to 800,000 barrels per day of light crude oil and 150,000 barrels per day of heavy crude oil from points in Wyoming and Colorado to Tallgrass' and Kinder Morgan's Deeprock terminal in Cushing. From there, customers will have pipeline connectivity to the Gulf Coast and export markets through Tallgrass' planned Seahorse Pipeline and other existing or proposed future pipeline projects.
The combined project is expected to provide initial service as early as the second half of 2020.
Tallgrass' chief operating officer Bill Moler says: 'This combination of assets creates a significant growth opportunity for both companies. Shippers benefit by gaining access to a pipeline system that can source from multiple basins and access numerous demand markets including existing refinery connections on Pony Express and Tallgrass' downstream options.'
Don Lindley, chief commercial officer for products pipelines at Kinder Morgan, adds: 'There are a number of competitive advantages to jointly developing this project and leveraging Kinder Morgan's and Tallgrass' existing assets, including the expansion of our Double H Pipeline system. Chief among them is the ability to quickly and efficiently place an additional 550,000 barrels per day of crude transportation takeaway capacity in service from the Rockies, which helps domestic producers and offers near-term relief for Canadian producers.'
As European storage operators seek ways to diversify their strategies to attract more business, Arnaud Waché, president of AWBP Solution, suggests that bitumen may prove to be an attractive product avenue as many countries become increasingly short
During the summer of 2018, at the peak road building season, many bitumen supply shortage situations were reported throughout Northern Europe, creating issues for road builders and membrane manufacturers - the main buyers of bitumen.
This situation caught the attention of several storage operators. At a time where every facility is looking at ways to diversify its activity and reduce dependence on diesel and gasoline, is bitumen a way to diversify a storage terminal's business?
Bitumen has a very unique profile in terms of supply and demand in Europe. If bitumen consumption continues to be fairly stable in Europe, production is under severe pressure. Production has declined in Europe over the past eight years, from 20 million tonnes in 2010 to 17.5 million tonnes in 2018.
There are many reasons for this reduction of bitumen production. Bitumen is made out of crude residue and production is much less profitable than residue conversion. Therefore, refiners have decided to invest in conversion capacity like delayed coker units and deasphalter units that turn residues into lighter products. Total and ExxonMobil for instance have made that choice in Antwerp.
Most of the refineries producing bitumen are old and have poor hardware (low level of complexity). They struggle to remain competitive due to the excess of refining capacity in Europe and competition from new and modern refineries outside Europe. Many European refineries producing bitumen have fully closed already, Total's La Mede being one of the most recent examples. This site has been converted into a bio diesel production plant boosting bitumen storage projects in this area.
Bitumen adds complexity and cost to refinery operations. Bitumen production requires the processing of specific crudes (heavy and high sulphur) which impact refinery operations. Some refiners have decided to stop processing those crudes and to produce other products. For example, ExxonMobil in Fos, France stopped in 2006 and BP decided to do the same in 2018 in Gelsenkirchen, Germany. The crude oil situation is actually getting worse for bitumen producers as the two bitumen crude super stars - Venezuelan and Iranian crude - are getting very hard - if not impossible - to source due to different reasons.
Consequently, several countries have stopped bitumen production, such as Switzerland, Norway, Denmark, Ireland and Slovakia. Many countries are also getting short, whereby they no longer cover their consumption with local production. For instance, France, despite having six refineries producing bitumen, is short by 600,000 tonnes per day. The UK has been a major importer of bitumen since 2013. In 2015, the Netherlands produced less than half of what it produced in 2014. Production in Belgium has reduced by a third since 2010.
Another remarkable item is that rationalisation of production leads to more monopolistic supply situations and risky buyer positions. Many countries rely only on one producer. Buyers are left with few options and it gets worse when production stops due to operational issues that tend to be increasingly frequent due to the aging of the bitumen production assets or in the case of a major incident. A fire impacted the Vohburg refinery in September 20181 in Germany and there is still uncertainty on when production will restart.
The supply situation is not expected to improve despite the IMO 2020 impact, which creates an opportunity for refiners to use bitumen as a back-up plan for high sulphur residue disposal. In theory, bitumen would be the perfect alternative for refiners to get rid of high sulphur residue that has been going into bunkers before 2020. However, it is not that simple:
1) Not every refinery can process bitumen crude,
2) Not every high sulphur residue stream can go into the bitumen pool,
3) Bitumen logistics are dedicated, expensive to operate and need major investments. Few refineries can afford this move in Europe and if they invest, they are likely to target conversion projects rather than bitumen production.
The bitumen opportunity
Storage operators should then carefully study the bitumen storage opportunity for themselves as there is more appetite from customers to secure their supply. Stock out is not an option for road builders who account for more than 85% of bitumen global consumption and are exposed to major penalties if they do not complete work on time. Quality is also critical as roads are here to stay and are expensive to maintain. Logistical flexibility is required for a product that is weather dependent and subject to a seasonality consumption pattern.
In order to assess the potential, storage operators should look at the following criteria to assess the potential of their locations:
- Are they close to strong bitumen demand areas with no/limited competition?
- Are their terminals already on one of the main bitumen shipping routes?
- Do they offer enough draft to accommodate any kind of bitumen ship?
- How good are their road & rail connections?
- Do they have access to competitive energy costs?
- Do they have land to accommodate storage expansion and ideally a bitumen transformation plant that tends to be more integrated on bitumen storage sites?
Additional changes in the industry will also benefit storage operators. Additional closure of bitumen production sites is expected as further rationalisation of refining is needed in Europe due to increased competition from the US and Middle East and expected declining demand of diesel and gasoline in Europe.
More blending & transshipment activities will be required to cope with supply/demand imbalance.
Current shortage of qualified truck drivers will further boost demand for new lifting points closer to demand areas.
Additionally, storage in the low bitumen season to cope with peak season should grow, boosted by a global deficit.
For these reasons, few products show an attractive profile for storage operators like bitumen.
Arnaud Waché will be speaking more about the bitumen opportunities for storage operators on the afternoon of the first day of the StocExpo Europe conference from March 26-28. For more information, visit www.stocexpo.com
Saudi Arabia is in talks with South Africa over a new crude oil refinery and petrochemical plant as part of a $10 billion investment in the South African economy.
During a visit by the Minister of Energy, Industry and Mineral Resources of Saudi Arabia Khalid Al Falih to South Africa's Minister of Energy Jeff Radebe, it was agreed that Saudi Aramco and the Central Energy Fund will jointly conduct studies before progressing further.
Both ministers signed a declaration of intent to cooperate comprehensively over oil and gas. Saudi Arabia supplies 40% of the crude oil consumed in South Africa.
Additionally, the possibility of Saudi Aramco using the tanks at Saldanha to store crude oil was also discussed. The use of Saldanha for storage and trading by Saudi Aramco would improve security of crude oil supply for South Africa and will offer a strategic location for Aramco in the trading of crude oil.
Both Saudi Aramco and the CEF will discuss the proposal further.
Buckeye Partners has completed the sale of its equity interest in VTTI to Vitol Investment Partnership and IFM Investors for $975 million.
The sale was one of several actions Buckeye announced following the completion of its strategic review. In December 2018 the company closed the sale of a package of domestic pipeline and terminal assets to InstarAGF Asset Management following the strategic review.
Clark C. Smith, chairman, president and CEO of Buckeye, says: 'The closing of this transaction represents the final step in our announced strategic review. The completion of these actions will serve to improve Buckeye's financial flexibility, which, along with our advantaged portfolio of pipeline and terminal assets and attractive growth opportunities, are expected to provide attractive long-term returns for our unitholders.'
Uniper and Titan LNG have signed an MoU to develop a user-friendly technical interface & commercial products for small-scale LNG players from the Wilhelmshaven FSRU.
The terminal in Wilhelmshaven, Germany will enable the loading of small LNG seagoing vessels and barges and several truck loading bays are planned to enable the onward transport of LNG by road.
The MoU between the two companies is to accelerate the growth of LNG as a fuel in the downstream markets for industry, road fuel and shipping fuel in Germany.
With its proximity to the Jade Weser Port, Bremerhaven and the German Bight, Wilhelmshaven is a very suitable location to supply LNG for all downstream markets and in particular for marine fuels. Wilhelmshaven is the only German site with a deep-water port and is ideally located with regard to the existing pipeline and gas storage infrastructure.
The FSRU will have a natural gas send-out capacity of 10 billion m3 per year and an LNG storage capacity of more than 263,000 m3. The terminal is scheduled to go into operation in the second half of 2022.
Keith Martin, member of the executive board and CCO of Uniper SE, says: 'The agreement with an experienced and established market player in the small-scale LNG sector such as Titan LNG is another important step for the FSRU Wilhelmshaven project.
'With Wilhelmshaven, we offer a first-class location for supplying the shipping and road fuel markets with LNG. With this cooperation, the FSRU Wilhelmshaven project can make an important contribution to reducing CO2 and pollutant emissions.'
The International Liquid Terminals Association has welcomed moves by the US Congress to extend authorisation of the Chemical Facility Anti-Terrorism Standards programme.
The Senate unanimously approved the measure on January 17 and the House unanimously approved it on January 18.
Kathryn Clay, president of the ILTA, says: 'ILTA applauds Congress for extending—on the day it was set to expire—this important security programme, which regulates critical chemical facilities to guard against terrorist attack.
'This 15-month extension gives us the opportunity to make necessary changes to the programme, while continuing to ensure the security of facilities that store the highest-risk chemicals.
'For the past decade, ILTA has been the leading voice encouraging the Department of Homeland Security to correct the treatment of gasoline and other fuel blends under the CFATS programme. ILTA looks forward to working with Congress and DHS to ensure that fuel blends are treated on par with similar materials under CFATS implementation.
'We urge President Trump to sign this important reauthorisation legislation as soon as possible.'
Market leading publication Tank Storage Magazine celebrates its 15th anniversary in 2019. To celebrate this milestone, the February/March edition of the publication will be the biggest yet, with tradeshow distribution at five major events worldwide.
The February/March edition will be distributed to all delegates and visitors at StocExpo Europe, NISTM Orlando, Tanks & Terminals in Dubai, the Transportation & Logistics Summit in Texas and the Global Tank Storage Award in Rotterdam.
On top of this the magazine will also be posted to 3,500 industry professionals worldwide, via a fully audited, proven mailing list.
This means 10,000 copies of this edition will be printed and distributed worldwide.
This unrivalled distribution is outlined below:
- Official media partner for NISTM Orlando: the only magazine in delegate bags & distribution in media areas
- Official media partner for StocExpo, Rotterdam: the only magazine in delegate bags & the only magazine containing the StocExpo exhibitor catalogue
- Official media partner for Transportation & Logistics Summit, Texas: the only magazine in delegate bags
- Official media partner for the Global Tank Storage Awards, Rotterdam: the only magazine given to all attendees
- Official media partner for Tanks & Terminals 2019, Dubai: distributed in all delegate bags and on conference seats
- Posted to all 2018 ILTA attendees
- Posted to 3,500 terminal professionals worldwide – 100% proven, audited distribution
This edition represents unquestionable value for money. Advertising closes on 22nd February 2019 – book your space now by contacting David@tankstoragemag.com
Pin Oak has acquired 236 acres near its terminal in Corpus Christi, Texas to further expand its storage operations.
The acquired land is located adjacent to the Kansas City Southern main rail line and Corpus Christi rail yard. The land can accommodate more than 10 million barrels of bulk liquids storage, as well as the construction and operation of a full unit train solution.
Pin Oak plans to connect the site through a shore distance pipeline to its main site on the Corpus Christ Ship Channel, offering its customers additional tank capacity, as well as rail loading and unloading capabilities through an operational Union Pacific connection and the KCS.
Mike Reed, CEO of Pin Oak Holdings, says: 'We are excited to be expanding our footprint through this acquisition which will bring incremental tankage and logistics solutions to our customers. Pin Oak is in a unique position to offer its customers a full logistics solution through its direct refinery connections, Suezmax vessel and barge dock capabilities, truck loading and unloading bays, and direct access to two Class 1 railroads.
The company's main terminal is currently under construction, with brownfield expansion of more than two million barrels of crude storage. All capacity is supported by long-term third-party customer contracts. The connection into the Gray Oak Pipeline is currently under construction and the terminal will be a necessary outlay for Permian and Eagle Ford crude.
Pin Oak also operates multiple pipeline connections to nearby refineries, nearly one million barrels of existing storage capacity as well as a polymer modified asphalt plant, rail loading and unloading facilities, and a truck rack.
Par Pacific Holdings has completed the acquisition of US Oil & Refining for $358 million.
The acquisition includes a 42,000 barrel per day refinery, marine terminal, a unit train-capable rail loading terminal and 2.9 million barrels of refined product and crude oil storage.
The refinery and associated logistics system serve the Pacific Northwest market.
William Pate, president and CEO of Par Pacific, says: 'We are pleased to close the US Oil transaction, which balances our Pacific and mainland market exposure. We expect the transaction to be immediately accretive to our 2019 earnings and cash flow.
The 2019 StocExpo conference programme has been revealed, featuring discussions on IMO 2020, the outlook for crude oil and refined products, regional storage outlooks as well as cyber security and how to future-proof terminal operations.
The conference and exhibition returns to the Ahoy in Rotterdam on March 26-28, bringing with it the highly-anticipated and CPD-certified conference programme. For the very first time the conference will be hosted on the show floor, allowing even greater access to in-depth sessions, presentations and debates delivered by over 30 industry thought leaders, such as Matthew Hudson from Shell and motivational speaker, Steven Van Belleghem.
The conference, organised by Tank Storage Magazine, will enable terminals, traders, oil majors and investors to learn from one another, share best practice and benefit from a range of networking opportunities.
CEOs, terminal managers and analysts have been lined up from companies such as Shell, Alpha Terminals and LBC Tank Terminals to speak at the conference.
The first day of the conference will focus on current market trends, regulatory analysis and global market outlooks. Following opening remarks from the chair, Andy Inglis, principal at Nexant, Energy and Chemicals Advisory and Jean-Baptiste, CEO at 2PR Consulting, will speak separately about how different market trends will impact on future demands for tank storage.
A session on the impact of IMO 2020 on global crude oil will be presented by Cüneyt Kazokoglu, director of long-term oil service and head of oil demand at FGE, while Mark Williams, managing director at Shipping Strategy, is also due to advise on IMO 2020 later in the afternoon.
Mike van Croonenburg, director at Alpha Terminals, will speak about industry growth strategies in today's challenging and competitive market conditions.
Critical industry topics, such as IMO 2020, the tank storage market in Germany, rail-based supply chain solutions for bulk liquid logistics in Europe and protecting storage tank installations in conflict zones, will be discussed by representatives from AWBP, UTV (the German Tank Storage Organisation), DB Cargo BTT and Swiss Fire, respectively.
Day two of the StocExpo Europe conference is dedicated to discussions surrounding 'The terminal of tomorrow'. This begins with a highly-anticipated keynote session from motivational speaker, Steven Van Belleghem, thought leader on customer relationships and digital marketing. The session will focus on how to win customers in a world of AI, robots and automation.
A panel discussion featuring Shell's terminal manager, Matthew Hudson, and leading experts from Siemens, Vortexa and Port of Rotterdam will then follow in the afternoon and cover how to future-proof the tank storage sector. Ilya Tillekens and Marcel Jutte of Hudson Cybertec are due to discuss securing tank terminals against cyber security threats, while advice on how to transform a port's operational environment through digital strategies will be presented by Ronald Backers, business intelligence from the Port of Rotterdam. Wilfried Kleiser, senior project manager at Siemens, will follow this with a session on how IoT can be used to improve efficiency at the terminal.
Late night networking will follow the end of day two of StocExpo Europe's 15th year anniversary.
Day three will give attendees the opportunity to learn from international markets. Peter Davidson, executive director at the UK Tank Storage Association and Andy Stanley, director at RAS, will start the day off by talking about safety leadership in tank storage. Kathryn Clay, president at the ILTA, and Jeff Dewar, senior vice president at LBC Tank Terminals, will then each present informative sessions on the booming tank storage market in the US.
In the afternoon on day three, Fabio Kuhn, CEO at Vortexa, will speak about the impact of new data and marketing intelligence for the storage industry, followed by presentations by representatives from Keller, Eddyfi, Brainum and Newson Gale. These include sessions on securing exploitation conditions with safe tank foundations, increasing an asset's life cycle though an improved non-intrusive inspection (NII) programme, and understanding why static electricity is an ignition source of combustible atmospheres.
Delegates will also have plenty of opportunities to visit the exhibition where over 200 suppliers from across the globe will be showcasing their latest innovations. In addition, the Innovation in Storage programme will be hosted on the show floor, providing insightful and free content for all visitors.
For more information on the conference and how to attend, visit: https://www.easyfairs.com/stocexpo-europe-2019/stocexpo-europe-2019/conference/conference-programme/
Ineos has announced plans to invest €3 billion in an ethane gas cracker and world-scale PDH unit in Antwerp.
The investment will be the biggest ever made by Ineos and its first cracker to be built in Europe in 20 years. The company says this investment is a game changer for the chemical sector and will bring significant benefits to the Belgium and wider European communities.
The new complex will be co-located with Ineos' existing sites in Europe making polymers and will be connected by pipeline to a number of INEOS ethylene and propylene derivative units in the region. The company will take over unused parts of concessions held by neighbouring companies, ensuring maximum integration with the existing chemical industry.
The new production plants are expected to be operational by 2024.
Sir Jim Ratcliffe, founder and chairman of Ineos, says: 'Our investment in a gas cracker and world-scale PDH unit is the largest of its kind in Europe for more than a generation and is an important development for the European petrochemical industry. We believe this investment will reverse years of decline in the European chemicals sector.'
Rob Ingram, CEO Ineos olefins & polymers Europe North adds: 'The addition of these world-scale assets, using cutting edge technologies that are also highly energy efficient, will give us a competitive and sustainable cost base. We believe this will significantly strengthen the whole of the ethylene and propylene derivative chains within Ineos and allows us to continue to support the growth and development of our customers for years to come.'
Jacques Vandermeiren, CEO of Antwerp Port Authority, says: 'It is naturally very good news that Ineos has selected our port for this major new investment. It once more demonstrates that we are the largest integrated chemical cluster in Europe are very attractive to international investors.
This mega-investment brings the total amount of new capital expenditure that we have attracted to Antwerp over the past year to more than €5 billion.'
Philips 66 Partners, Harvest Midstream and PBF Logistics have entered into an agreement to jointly develop the ACE Pipeline System.
The system will provide crude oil transportation service from the market hub in St James, Louisiana, to downstream refining destinations in Belle Chasse, Maraux, and Chalmette, Louisiana.
The pipeline system is expected to have an initial throughput capacity of 400,000 barrels per day, with the ability to expand further depending on shipping interest. The parties may elect to add a delivery destination in Clovelly, Louisiana, subject to market demand.
The system is expected to be placed in service in the second half of 2020.
It will include a new-build segment to connect the St James market centre to the CAM pipeline. Harvest Midstream will contribute its existing CAM pipeline to the ACE pipeline system.
Husky Energy is considering selling its Canadian retail and commercial fuels business as well as its Prince George refinery as it embarks on a strategic review.
The decision to review and consider a sale of non-core downstream assets comes as it increasingly focuses on core assets in its integrated corridor and on its offshore business in Atlantic Canada and the Asia Pacific region.
The company's retail and commercial network consist of more than 500 stations, cardlock operations and bulk distribution facilities from British Columbia to New Brunswick.
The 12,000 barrel per day refinery processes light oil into low-sulphur gasoline and ultra-low sulphur diesel, along with other products.
CEO Rob Peabody says: 'Our retail network and the Prince George Refinery are excellent assets, with exceptional employees, which have made solid contributions to Husky over the years. However, as we further align our heavy oil and downstream businesses to form one integrated corridor, we've taken the decision to review and market these non-core properties.
'We expect the business will be highly marketable, attracting strong interest and valuations.'
Yantai Port has signed agreements with two subsidiaries of PetroChina to expand a crude oil terminal and build a new LNG receiving terminal.
Kunlun Energy and Yantai Port will build an LNG receiving terminal comprising four LNG storage tanks, each with a capacity of 200,000 m3 at the port in eastern Shandong province PetroChina says. It will have a dock capable of receiving 266,000 m3 LNG vessels.
Additionally, PetroChina Fuel Oil and Yantai Port will jointly invest RMB 5 billion to expand a crude oil terminal at the port and to build the second phase of the Yantai-Zibo crude oil pipeline in Shandong province.
Six leading industry figures in the tank storage sector have been shortlisted for the prestigious Outstanding Achievement Award at the 2019 Global Tank Storage Awards.
All nominees have an extensive amount of experience within the tank storage sector, as well as a multitude of achievements, ranging from setting up their own companies to being at the forefront of ambitious company growth.
This is the only category being voted on by the industry and voting will close on March 1 2019. Nominations for the remaining award categories, which are judged by an independent panel of experts, are still being accepted until February 15 2019.
The 2019 Outstanding Achievement Award shortlist is as follows:
Krien van Beck, founder, RVB Tank Storage Solutions
Jerry Cardillo, president, Contanda Terminals
Kasper Castricum, general manager, Arabian Chemical Terminal
Earl Crochet, director of engineering & operational optimisation, Kinder Morgan
Peter Davidson, executive director, Tank Storage Association
Phil Myers, founder, PEMY Consulting
The awards, which are free to enter, celebrate excellence, safety and innovation in the industry, with the award categories relating to terminal achievements, equipment innovations, ports and individual success.
All categories except for the Outstanding Achievement Award will be judged by an independent panel of industry leaders and influencers from companies such as Shell, BP, Oiltanking, Inter Terminals, VTTI, Vopak and Koole.
The winners will be announced on March 26 2019 in Rotterdam at the Floating Pavilion.
Hosted by market leading publication, Tank Storage Magazine, the gala dinner & ceremony attracts more than 200 terminal professionals each year, from as far as Saudi Arabia, India, Malaysia, South Africa, the US and all across Europe.
The event includes an all-inclusive drinks reception, a three-course dinner, captivating entertainment, a casino and much more. It is an exclusive opportunity to entertain clients & reward colleagues for their hard work throughout the year.
'The Global Tank Storage Awards ceremony is always exciting,' says Sandra De Mey, commercial manager, North Sea Port. 'This year we were really proud to win the Best Port Award, which has given us a significant amount of international recognition and media attention.'
As an added benefit this year, as well as being rewarded on the night, the winners will be further highlighted in a special winners exhibition showcase at Tank Storage Asia 2019 and StocExpo Europe 2020.
Everyone in the industry is entitled to one vote each. For more information on those who have been shortlisted and to place your vote, visit www.tankstoragemag.com/awards-vote/.
Discovery Midstream Holdings has received initial equity funding of $1 billion from Stonepeak Infrastructure Partners to pursue a series of North American midstream opportunities.
Headquartered in Dallas Discovery is led by four founding partners - Co-CEO's Drew Chambers and Steven Meisel, CFO Daniel Sailors and COO Cory Jordan – who had a successful track record of value creation in the midstream industry.
Discovery will pursue a strategy targeting midstream assets within both private and public ownership structures, at various stages of maturity, and across the hydrocarbon value chain, including natural gas, natural gas liquids and crude oil. The company says it will 'focus on situations where outcomes can be influenced with Discovery's expertise in operational and commercial optimisation'.
Co-CEO, Drew Chambers, says: 'We believe that now represents a unique and attractive time to invest in the U.S. midstream sector, supported by secular volumetric growth, historically depressed valuations, supportive structural changes in the public markets and limited new capital formation.'
Petroperu is advancing construction work at its Ninacaca supply plant in Peru to meet growing demand for liquid fuels.
Construction work is well underway by the OBS-IMECON consortium, the contractor for the project, at the facility in the Pasco region. This includes the development of detailed engineering, earthworks and excavation.
Once this phase is complete, work will start on building crude storage tanks comprising 7,500 barrels for three fuel types: diesel B5, gasoline 90 octane and 84 octane. This facility will address current demand for liquid fuels mainly in the central region of Peru.
Additionally, the facility will have water storage for its firefighting system.
The state-owned company says that the plant will help with the development of the central region of the country, including Junín and Huánuco.
Shell Gas has completed the acquisition of a 26% equity interest in the Hazira LNG and port venture from Total Gaz Electricité.
The move brings Shell's equity interest in the venture in India to 100%.
The transaction allows Shell to build an integrated gas value chain: supply from its global LNG portfolio, regasification at the Hazira facility, and downstream customer sales. It further enables Shell to contribute towards India's long-term need for more and cleaner energy solutions.
Ajay Shah, vice president Shell Energy Asia, says: 'Shell invested in the Hazira project 15 years again and it was the single largest foreign direct investment for Indian in the energy sector at the time. I am very proud that as a 100% shareholder, we will now be able to utilise this great infrastructure asset to its full potential and help provide much needed gas to serve the growing energy needs of India.
Having commercial and operational flexibility over Hazira will further enable Shell to offer better customer value propositions and help the company build a pan-India gas business.
BP and SOCAR Turkey have signed a heads of agreement to evaluate the creation of a joint venture for the construction and operation of a world-scale petrochemicals complex in Turkey.
The proposed facility, in Aliaga in western Turkey, would produce 1.25 million tonnes per annum of PTA, 840,000 tpa paraxylene and 340,000 tpa benzene.
Both companies now expect to undertake design work for the facility, which would allow for the integration of feedstock supplies from the nearby new STAR refinery and Petkim petrochemicals complex, both owned by SOCAR Turkey.
Luis Sierra, CEO for BP's global aromatics unit, says: 'If taken forward, this would be the largest integrated PTA, PX and aromatics complex in the Western Hemisphere and BP's first major new aromatics platform since our Zhuhai site in China opened nearly 20 years ago.'
Vagif Aliyev, Chairman of the Board of SOCAR Turkey, adds: 'We entered the Turkish market in 2008 with the acquisition of Petkim and since then have realised giant projects such as the STAR refinery. The area covering all of SOCAR Turkey's projects in Aliaga has recently become the first Private Industrial Zone in Turkey.
'The immediate proximity to the feedstock and infrastructure provided by SOCAR's other facilities will contribute significantly to the competitive power of the new facility. Expanding our immense refining and petrochemical complex, built at the gateway to world markets on the Aegean coast of Turkey, we aim to continue to contribute to the economies of the two brother countries – Turkey and Azerbaijan.'
Both companies expect to work towards a potential final investment decision in 2019, which could result in start-up of the new plant in 2023.