Latest storage news
Andeavor has announced plans to build a refined products terminal at the Rosarito storage facility of Comisión Federal de Electricidad (CFE).
As part of an agreement with CFEnergía, Andeavor will sign a long-term lease for the land and will build and operate the facility for $100 million.
The infrastructure is expected to reduce Andeavor's cost to directly import fuels into Baja California supporting its growing network of ARCO branded stations and other customers in northwest Mexico.
Greg Goff, chairman, president and CEO, says: 'The expansion of our branded business in Mexico allows s to further extend our integrated West Coast value chain into this attractive and high growth geography.
'This logistics project will further strengthen Andeavor's ability to cost effectively deliver petrol and diesel to our customers directly from our refineries on the West Coast.'
Redevelopment of the facility is expected to be compete in the next two years.
Plans have been submitted by the Yangon Region Government to establish a new multi-purpose terminal in the region.
According to government-owned newspaper Global New Light of Myanmar the terminal in the southern Yangon region would increase foreign currency earnings and facilitate exports and imports.
The plans detail that the terminal would be developed on 1,053 acres of land with a 2.2km waterfront.
The facility will also have a bulk liquid storage terminal to allow for the import of fuel oil, according to U Zaw Aye Maung, Yangon region minister for Rakhine ethnic affairs at Yangon region parliament.
It would also facilitate the export of rice and pulses. Royal Haskoning Company and Surbana Jurong Company have completed a feasibility study.
Oil product stocks in the Middle East's key oil hub of Fujairah rose 8.2% in the week to Monday, June 4 as light and middle distillate inventories rebounded strongly. Total oil product stocks were 18.149 million barrels, up 1.37 million barrels from a week earlier, according to data from the Fujairah Energy Data Committee.
Stocks of light distillates rose by 30.2% week on the week to 7.484 million barrels, bouncing back from a near five-month low last week, the FEDCom data showed.
'Market activity has been slow and quiet due to Ramadan, even more so compared to this time last year. But demand is definitely expected to pick up after the Ramadan,' a Middle Eastern trade source says. The Islamic holy month comes to an end June 14. Stocks of middle distillates also rose, by 14.8% to 2.648 million barrels.
The East of Suez gasoil market has been under pressure due to fresh spot barrels becoming available. That was particularly the case from India, the Middle East and China, S&P Global Platts Analytics said in a report Wednesday.
Bahrain's Bapco has been an active seller, offering as much as 120,000 mt of 10 ppm gasoil for loading in the second half of June in two separate tenders in recent weeks. Indian gasoil exports were expected to rise as its domestic demand declines seasonally in Q3, the report said. Stocks of heavy distillates and residues fell 8.1% to 8.017 million barrels. Bunker activity in Fujairah remained muted amid uncertainty over the direction of crude prices.
However, the first-month/second-month time spread for Arab Gulf 180 CST HSFO swaps saw a strengthening backwardation to $4.25/mt Tuesday, the Platts Analytics report said. That was driven by a tightening Singapore market that has received reduced arbitrage volumes from the Middle East due to summer power demand, it said.
Phoenix Petroleum Philippines and CNOOC Gas and Power Group have signed an agreement to explore building a LNG receiving storage terminal in the Philippines.
Reuters reports that the Philippines is seeking investors to build a storage and distribution facility for imported LNG as it looks to replace its Malampava gas reserves.
In a disclosure to the Philippine Stock Exchange, Phoenix says: 'The agreement for the LNG project will potentially broaden Phoenix Petroleum's portfolio of new businesses, which now include LPG, convenience retailing, asphalt and e-transactions.'
Local media reports that Phoenix vice president for external affairs Raymond Zorrilla says the LNG opportunity would be an addition to the company's expanding portfolio of new ventures complementing and strengthening its core fuel business.
'By investing in clean energy such as LNG, Phoenix Petroleum is doing its part in supporting the Philippines Energy Plan to diversify energy mix and ensure sustainable, stable, secure, sufficient, accessible and reasonably-priced energy.'
Odfjell is seeking to change its terminal division to a more flexible structure as part of the Lindsay Goldberg transaction.
In a capital markets day presentation, the company, which operates eight terminals globally as well as a terminal network in South America, said it is committed to owning and operating terminals in the long-term.
It said that while it is not in 'exit mode' it will consider a 'tag along' in Rotterdam due to:
-Fundamental turnabout of terminals is completed
-Rebuilding the terminal to its full potential will require substantial investments
- Replacing Lindsay Goldberg with a new J/V partner will likely accelerate the capex need
- The terminal is mainly mineral oil focused, and Antwerp is consolidating as the chemical hub.
However, if the Rotterdam terminal is not sold, the company has said it will follow the plan to rebuild as long-term owners and that tangible synergies exist, and some remain untapped.
As previously reported, Lindsay Goldberg plans to sell its 49% shareholding in Odfjell Terminals.
As part of the transaction, Odfjell SE is looking to change its terminal division. Under the future structure, Odfjell SE would control the management company and Odfjell Terminals will become an operational platform.
This new structure would give flexibility to pursue growth projects with other new partners, make it easier to achieve synergies with Odfjell Tankers and make governance easier.
Koole Terminals will expand its biodiesel storage terminal and block train facility at its terminal in the Port of Rotterdam.
The expansion at Koole Tankstorage Minerals will increase rail capacity to an 'unprecedented level in the Rotterdam harbour' according to the company.
The development will allow customers to centralise their biodiesel and diesel storage portfolio at one site.
CEO John Kraakman says: 'Koole Tankstorage Minerals will be the first terminal operator in the ARA to offer block train capabilities of this magnitude and could become a serious competitor to the Hamburg port, which is currently the only – high throughput – diesel block train distribution location amongst the larger ports in north west Europe.'
The new facility will be operational in the second half of 2018.
Australian Industrial Energy plans to build New South Wales' first LNG import storage terminal at Port Kembla.
The terminal will have the ability to supply in excess of 100 PJ per annum, which means it could meet over 70% of New South Wales' total gas needs.
Development and construction of the Port Kembla Gas Terminal will make Australian Industrial Energy (AIE)– an Australian-led international consortium – a central player in the market.
The terminal, which will require a capital investment of between AUD$200 million and AUD$300 million, will increase the certainty of affordable gas supply to NSW.
AIE has entered into 12 MoU's for the supply of gas. The company says that the terminal is a comparatively low-cost and speedy alternative to the construction of new inter-state or cross-country pipelines to transport gas to NSW and the wider eastern seaboard. As a gateway to global sources of natural gas, it could also underpin the vast majority of the state's entire natural gas needs by early 2020.
AIE CEO James Baulderstone, says: 'NSW is facing significant challenges in ensuring available and affordable gas supplies and we are working to make this project a reality as quickly as possible.
'In recent times wholesale gas prices have doubled, and in many cases tripled in NSW. In addition, many industrial companies are now unable to secure gas for any period longer than 12 months.
'The world-leading expertise of the AIE partners, now combined with the enthusiasm of NSW ports and Port Kembla's regional business community to see this project realised, means AIE is well placed to deliver firm, long-term gas on highly competitive pricing and terms as soon as 2020.'
Construction work has started at Duqm Refinery after contractors for the three EPC packages we issued a 'notice to proceed'.
This notice signifies the start of the project schedule of the construction work of the 230,000 bpd refinery. It is expected to be completed and be ready for start-up in 42 months' time.
Contractors will initially allocate resources to complete detailed engineering design work at their home offices where they will be joined by staff from Duqm Refinery.
The projects scope of work is divided into three separate packages. The scope of EPC one, by Técnicas Reunidas and Daewoo Engineering & Construction, includes the process units of the refinery. The scope of EPC two, by Petrofac International and Samsung Engineering, consists of the utilities and offsite facilities and EPC three, by Saipem and CB&I includes the product export terminal at Duqm Port, the Duqm Refinery dedicated crude storage tanks in Ras Markaz and the 80km pipeline from these crude tanks to Duqm Refinery.
Jacobus Nieuwenhuijze, project director of Duqm Refinery, says: 'This truly is an exciting and important milestone for all of us, since it not only signifies start of construction work but also culminates the efforts put in by stakeholders to have the project reach this stage.
President Trump has ended a suspension on steel and aluminium import tariffs for Mexico, Canada and the European Union.
In a statement, the White House says that the president is taking action to 'protect America's national security from the effects of global oversupply of steel and aluminium'. Following extensive discussions, he announced he will implement section 232 tariffs on steel and aluminium imports from these three countries, which were previously excluded from such tariffs.
This follows an announcement in March of a 25% tariff on steel imports and a 10% tariff on aluminium imports.
The US has reached agreements with South Korea, Australia, Argentina and Brazil on steels and with Australia and Argentina on aluminium.
In a statement, the White House says: 'The administration will continue discussions with them and remains open to discussions with other countries.
'The administration will continue to monitor steel and aluminium imports and adjust the measures in effect as necessary to protect the national security of the US.'
In response, API president and CEO Jack Gerard says that this will disrupt the US oil and natural gas industry.
He says: 'We are deeply discouraged by the administration's actions to impose tariffs on our three closest trading partners and view this as a step in the wrong direction.
'The implementation of new tariffs will disrupt the US oil and natural gas industry's complex supply chain, compromising ongoing and future US energy projects, which could weaken our national security.
'Increased prices in specialty steel could threaten the continued domestic production of oil and natural gas and natural gas liquids – which are at their highest levels of production since 1949 – and could raise energy costs for US businesses and consumers, while threatening the nation's ability to achieve President Trump's goal of energy dominance.
'We hope and expect that the administration will recognise the national security benefits of the US oil and natural gas industry and grant API's member companies product exclusions from steel tariffs and quotas in the ongoing Department of Commerce process, as well as provide transparency and flexibility in the process to lessen the impact on US oil and natural gas production, transportation and refining.'
Petronas has entered into an agreement to acquire a 25% equity stake in the LNG Canada project in British Columbia.
Once the transaction is complete, ownership in the project in Kitimat will be 25% Petronas (through its wholly-owned entity North Montney LNG), 40% Shell Canada Energy, 15% PetroChina Canada, 15% Diamond LNG Canada and 5% Kogas Canada.
The project includes the design, construction and operation of a gas liquefaction plants and facilities for the storage and export of LNG, including marine facilities.
It will initially consist of two world-scale LNG processing units, with an option to expand the project in the future to four units.
Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin says: 'As one of the world's largest LNG producers, Petronas looks forward to adding value to this venture through our long-term expertise and experience across the LNG value chain.
'Petronas is in Canada for the long-term and we are exploring a number of business opportunities that will allow us to increase our production and accelerate the monetisation of our world-class resources in the North Montney. LNG is just one of those opportunities.'
Prasanth Kakaraparthi, senior analyst, Wood Mackenzie, says that this announcement markets an interesting turn of events for the company.
He adds: 'Petronas has signalled its intent to become a portfolio plater and has taken steps to diversify its supply sources. Once both phases are executed, LNG Canada could add up to 7mt of equity into Petronas portfolio – nearly 20% of its 2023 supply.
'We believe this to be a positive development for Petronas. We expect the global LNG market to tighten post 2022 and this bodes well for the project.
'But activity has returned to the LNG space with a number of projects expecting to take FID ahead of 2019. A new wave of project sanctions and rising oil prices could push up project costs and dampen the economics.'
Oil product stocks in the Middle East's key oil hub of Fujairah fell 13.4% in the week to Monday, May 28, as inventory levels declined across all report categories. Total oil product stocks in Fujairah were 16.776 million barrels, down 2.6 million barrels from a week earlier, according to data from the Fujairah Energy Data Committee, or FEDCom.
The biggest change was in light distillates, which dropped by nearly a quarter over the week to 5.750 million barrels, the lowest so far this year, as both the Middle East and Asia have rising petrol demand over the Ramadan season, S&P Global Platts Analytics said in a report Wednesday.
Kuwait's KPC continues to seek additional spot volumes and this week issued a tender for 100,000 mt of RON 91 gasoline over June and July. There has also been a shift in demand towards lower RON petrol, a Middle Eastern trader said. Premiums for Arab Gulf RON 95 gasoline were almost unchanged on the week at $3.10/b on Tuesday.
Stocks of middle distillates fell 13.7% to 2.306 million barrels. But they remain rangebound and have not risen above 3 million barrels since September 11, 2017. The East of Suez market is broadly balanced, but some say supply could begin to outstrip demand as refinery runs rise to peak summer levels in coming weeks, Platts Analytics said.
For now, a tighter supply of gasoil in Europe is attracting Middle Eastern barrels, with the East-West exchange-for-swaps recently at its widest in six weeks. East African demand has also been strong, with sources noting recent vessel shipments from Fujairah to Tanzania, the report said.
Stocks of heavy distillates and residues fell 5.2% to 8.72 million barrels. Strategically located outside the Strait of Hormuz choke point, Fujairah has not only become the world's second largest bunkering port, but is increasingly an important hub for trading and storage.
But bunker activity in Fujairah has been limited this week due to holidays in the US, Europe and Singapore, although sentiment has firmed recently. Bunker prices have followed crude prices retreating from the $80/b Brent futures level last week to just above $75/b Tuesday. This should be positive for bunker demand, adding to seasonal power sector demand over the summer, Platts Analytics said.
Marquard & Bahls has reported a mixed 2017 performance, with its tank storage division – Oiltanking – delivering a strong contribution to its financials.
The group says that Oiltanking had a 'successful albeit mixed year'. Some facilities saw a decline in capacity utilisation, but at the same time many contracts were extended and several major projects advanced.
In Matola, Mozambique, Oiltanking successfully commissioned a new tank terminal. The year-end, the company operated 80 terminals in 25 countries, with a total capacity of 21 million m3.
In view of the new tank terminal projects currently under construction and the expansion of existing locations, Oiltanking is confident that it will continue to grow in the future, with a particular focus in gases and chemicals.
Marquard & Bahls reported its 2017 operating result of €200 million.
Looking ahead, Marquard & Bahls says it will strive for further international growth in the future. Its focus will be on expanding the core activities of trading, tank storage logistics and aviation fuelling. It adds: 'The strong operating base and solid financial position provide a good starting point for future projects and plans.'
PetroChina will start work on two more underground gas storage facilities by the end of 2018.
Local media reports that the facilities will be located in southwest China's Chongqing Municipality, with a total cost of 5.3 million yuan.
The Tongluoxia and Huangcaoxia facilities are due to be complete by 2022 and will ensure an annual supply of 1.28 billion m3 of gas.
Currently, 25 underground gas facilities exist in China.
Enterprise Products Partners and Navigator Holdings have started construction on their joint venture ethylene export terminal at Enterprise's Morgan's Point facility on the Houston Ship Channel.
The terminal will have the capacity to export 2.2 billion pounds of ethylene per year. Refrigerated storage for 66 million pounds of ethylene is being constructed onsite and will provide the capability to load ethylene at rates of 2.2 million pounds per hour.
Commercial operations are expected to begin in the fourth quarter of 2019, which is one quarter earlier than previously projected.
The new terminal will facilitate continued growth of domestic ethylene production, which is expected to reach 90 billion pounds per year by 2021. It will also promote supply diversification for expanding markets like Asia, which rely on cost-advantaged US feedstocks.
The high-capacity ethylene salt dome storage facility Enterprise is developing at its complex in Mont Belvieu, Texas is scheduled to begin service in the second quarter of 2019. Once complete, it will have a capacity of 600 million pounds with an injection/withdrawal rate of 420,000 pounds per hour and will be designed to enable connections to the eight ethylene pipelines within a half-mile of the Enterprise ethylene storage system.
Additionally, Enterprise is building a new ethylene pipeline from Mont Belvieu to Bayport, Texas, which is on schedule to begin service in 2020.
The Government of Canada has agreed to buy the Trans Mountain Pipeline system and the expansion project for C$4.5 billion from Kinder Morgan Canada.
As part of the agreement, the government has agreed to fund the resumption of the expansion project (TMEP) and construction work by guaranteeing TMEP's expenditures under a separate federal government recourse credit facility until the transaction closes. It is expected to close in either the third or fourth quarter of 2018.
Additionally, the government will work with the board to seek a third-party buyer for the system and expansion project.
Kinder Morgan will continue to manage a portfolio of strategic infrastructure across Western Canada, including:
- An integrated network of crude storage and rail terminals in Alberta. The storage terminal is the largest merchant storage terminal facility in the Edmonton market and the largest origination crude by rail loading facility in North America
- The Vancouver Wharves Terminal
- The Cochin Pipeline system
Steve Kean, chairman and CEO, says: 'The outcome we have reached represents the best opportunity to complete TMEP and thereby realise the great national economic benefits promised by that project.
'In addition to the benefit of the sale proceeds, our remaining portfolio of assets represents a strong platform for the company and shareholders now and in the future. We continue to invest in expansions of our Canadian assets and look forward to future growth in the service of our customers and shareholders.'
JupiterMLP has been given the green light to build up to 2.5 million barrels of storage for hydrocarbons and a new liquid cargo dock in the Port of Brownsville.
The privately held midstream company has been given the necessary permits from the Port Authority, the Texas Commission on Environmental Quality and the US Army Corps of Engineers for the project.
These permits mean that the company will be able to load/unload vessels of up to 65,000 deadweight tonnes or Panamax sized vessels at a rate of up to 30,000 barrels per hour at the Jupiter Export Terminal, which will be directly connected to the Permian Basin via pipeline. In addition to the dock improvements, Jupiter will also be able to construct multiple rail racks for crude oil and refined products.
The storage terminal will also be able to blend refined products including diesel and petrol. The permit granted to Jupiter enables the blending of components to meet US and Mexico petrol specifications.
The company also announced that it has started the permitting and engineering process for two additional private docks inside the port. With the liquid dock and two private docks, the company will have the capacity to load and unload up to one million barrels of crude/products per day.
The terminal will be fully operational in 2020.
Keyera plans to acquire a logistics and liquids blending terminal near Tulsa, Oklahoma.
The terminal receives, blends and delivers diluent, the majority of which is transported by pipeline from the Mont Belvieu area to the Chicago area and ultimately into the Alberta market.
The terminal also has exclusive access to a nearby rail-to-truck transloading facility. The acquisition is expected to close in the second quarter of 2018 for $80 million.
David Smith, president and CEO, says: 'This acquisition builds on Keyera's focused investment strategy for the US, where we are selectively extending our liquids infrastructure into key US liquids hubs.
'The terminal is situated 50 miles from our recently announced Wildhorse development, providing opportunities for operations integration and commercial synergies. These assets, along with our Hull Terminal, provide the foundation for Keyera to execute a strategy in the US that is consistent with our proven strategy in Canada.'
Magellan Midstream Partners will expand the western leg of its refined petroleum products pipeline system in Texas.
Following a successful open season, the expanded system will be able to handle incremental shipments of petrol and diesel fuel to demand centres in Abilene, Midland/Odessa and El Paso, Texas and New Mexico.
The system can also access markets in Arizona and Mexico via connections to other pipelines.
Fully supported by long-term customer commitments, Magellan is expanding the capacity of the system to 150,000 barrels per day from its current capacity of 100,000 barrels per day. The capacity will be achieved by increasing the pipeline size along the existing route. Connectivity to the ExxonMobil Pipeline Company's terminal in Wink, Texas will also be added as part of the expansion.
Michael Mears, CEO, says: 'Magellan's extensive refined products pipeline system provides significant optionality for our customers, including the ability to access supply from multiple Gulf Coast and Mid-Continent refineries. We are pleased to expand the western leg of our Texas pipeline to serve increasing demand for refined petroleum products in West Texas and New Mexica, as well as surrounding markets in Arizona and Mexico via third-party pipeline connections.'
Magellan expected to spend $300 million on the project, with the expanded capacity available mid-2020.
ADNOC and the Indian Strategic Petroleum Reserves conducted a special ceremony to mark the first ADNOC crude oil shipment to the Karnataka storage facility.
The cargo arrived following a six-day voyage. The agreement, which was initiated in January 2017, covers the storage of 5.86 million barrels of ADNOC crude oil in underground facilities at the facility. This first shipment of 2 million barrels of crude oil, will be followed by additional shipments after India's annual monsoon season.
HPS Ahuja, CEO and managing director of ISPRL, says: 'Todays unloading of ADNOC crude oil marks another important milestone for ISPRL, as we deliver on our mandate of establishing strategic crude oil storage facilities that enhance India's energy security and serve as a cushion during any external supply disruptions. Our agreement with ADNOC builds on the rich history between our nations and opens new opportunities for further partnership and engagement between the UAE and India.'
India is 82% dependent on imports to meet its crude oil needs, 8% of which is supplied by the UAE. In addition to helping ensure energy security, the oil storage facilities enable ADNOC to efficiently and competitively meet market demand across Asia.
Wärtsilä has been given the go ahead for a new LNG storage terminal at the Finnish Port of Hamina after its turnkey contract reached a financial closed.
Debt financing for the project has been concluded with Skandinaviska Enskilda Banken and Finnvera, with the total investment worth €100 million.
In addition to supplying the engineering, procurement and construction of the terminal, Wärtsilä is also joining the project through a minority investment by WDFS in Hamina LNG.
The building permit for the LNG terminal has also been secured. In the first stage, a 30,000 m3 LNG storage tank will be built. Facilities are also being prepared for a second 20,000 m3 storage tank to be added at a later date. Construction work has already started, with the terminal expected to become operational by 2020.
Markku Tommiska, CEO, Hamina Energy, says: 'The new Hamina LNG terminal will be an important addition to the gas infrastructure as it will not only supply businesses and the shipping sector, but will also feed into Hamina Energy's distribution gas grid and can be connected to Finland's gas grid.'
Alexandre Eykerman, vice president, LNG Solutions, Wärtsilä Energy Solutions, adds: 'The Hamina project is the third LNG terminal in Finalnd that Wärtsilä has been contracted to build, the others being the Manga Tornio terminal and the Raahe terminal. This demonstrates the strengths the company has in project development and management.'