Latest storage news
Rubis Terminal has purchased the Galana Group company, the leading fuel marketer in Madagascar.
The company comprises of 71 petrol stations and covers commercial fuels for the mining and utilities sector as well as LPG and lubricants. It also control's the island's sole import terminal.
The facility in Tamatave has a capacity of 260,000 m3 and has private access to a jetty.
In a statement, Rubis says that Galana fully meets its investment criteria in fuel marketing, in that it is a leading player with a 30% market share and has import logistics ownership.
Along with its business in La Réunion, this acquisition reinforces Rubis' operations in fuel distribution in the Indian Ocean.
The company says: 'This boost will no doubt help generate additional leverage through volumes combined with economies of scale in shipping.'
Tesoro Corporation has signed a deal with Pemex for terminaling and transportation services in Mexico.
The company, which will become Andeavor on August 1, will supply transportation fuels in the Mexican states of Sonora and Baja California.
Tesoro was awarded capacity on the Pemex oil products pipeline and storage terminals earlier in July. The final agreement with Pemex has now been signed and Tesoro will soon begin to move products in the country through this deal.
Greg Goff, chairman, president and CEO, says: 'The expansion of our strategic footprint to include Northern Mexico strengthens our integrated value chain with significant growth opportunities for our marketing business.
'We are excited about Mexico and the opportunity to create value for the company, customers, business partners and communities.'
Oil market volatility has started to decline and investment in the industry has started to improve as a result of OPECs production cut.
The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) noted at its meeting in St. Petersburg that the oil market is making 'steady and significant progress towards rebalancing'. It found that the continued strengthening of global recovery is underway.
According to a report by the Joint OPEC-Non-OPEC Technical Committee, oil demand is expected to increase significantly in the second half of 2017, compared to the first half, with growth reaching 2 million barrels per day.
Additionally, between January and June 2017, the participating producing countries reduced their production by an estimated volume of 351 million barrels.
The OPEC commercial oil stocks overhang has also fallen by 90 million barrels.
However, the JMMC noted that despite the successes, more can still be improved by some participating producing countries.
The JMMC noted that once production levels stabilise in Libya and Nigeria, participating producing countries should further cooperate in 'a manner that contributes to the stabilisation of the market'.
Gate terminal has successfully started operating its two new truck loading bays at its LNG terminal in Rotterdam.
The terminal experienced a 50% increase in truck loadings in the year over year comparison, with up to 750 trucks being loaded in the first half of 2017. With the addition to two new bays, the terminal is positioned to deal with future growth in the demand for LNG distribution.
This addition will support the facility's customers to deliver LNG to retail stations, industry and ships.
HES Botlek Tank Terminal's storage capacity expansion is almost complete following the completion of the last tank.
The last tank, which was built off-site, will be transported to the facility on July 21, thus concluding the project which comprised seven ready-to-install tanks with a volume of 10,000 m3, which were transported from the SJR Group's Rotterdam construction site to Botlek over water.
Charles Smissaert, MD of terminal, says: 'The construction and delivery of these tanks is part of a bigger project, which is set to more than double HES Botlek Tank Terminal's storage capacity from 200,000 m3 to 477,000 m3.
'The expansion has been partly executed by the delivery of a total of seven off-site constructed storage tanks. This expansion is covered by a multi-year contract.
The Port of Corpus Christi has given the green light for a long-term lease agreement, enabling Howard Energy to build a petroleum storage terminal.
The 30-year lease agreement with Maverick Terminals Corpus, a subsidiary of Howard Energy Partners, allocated 41 acres of the inner harbour to the operator.
Howard Energy plans to design, construct and operate a rail terminal, and a petroleum and petroleum products storage facility. It is intended that the facility is connected with its proposed Dos Aguilas pipeline to Monterrey, Mexico. As part of the lease agreement, the port authority will design and construct a new oil dock.
The dock facility will initially serve Mexico's transportation fuel demand by rail, with an estimated target of at least two to three unit trains per week. Once the Dos Aguilas pipeline is permitted, constructed, and in service, significantly more volume is anticipated. The dock is targeting crude exports to international markets and will have Suez-max capability.
With the continued growth in both Eagle Ford and Permian Basin productions and growing global energy demand, particularly in Mexico, Corpus Christi is emerging as the energy port of the Americas.
Brad Bynum, Howard Energy Partners co-founder and president, says: 'This lease marks a strategic and significant expansion of our terminal network, not only for refined products but for crude oil.'
A draft of new regulations for China's oil storage industry have been released by the government.
According to Reuters, the government is seeking to update storage policies issued in 2006, bring regulations for crude oil and oil products within a single framework.
The new regulations are seen as a way free up the sector from state-owned oil majors.
The main change suggested is to remove the requirement for distributors and storage companies to have secure and steady supplies of refined products, which currently only state-majors can meet. However the clause will remain for crude oil.
Additionally, the proposal has also amended the tank capacity obligations from the 2006 policy.
Under the new draft, companies must have a minimum storage tank capacity of 200,000 m3 to distribute and store crude oil and at least 200,000 m3 for refined products. Experts and traders said those requirements were in line with industry averages.
Another change would require storage companies and wholesalers of crude oil or refined oil products to apply for a permit from the provincial government, subject to approval from Beijing.
This follows an announcement from the government earlier in the year saying it wold allow private companies to invest in storage.
Mukesh Parikh, senior consultant at SmartHead Consulting, examines the risks of operating storage terminals in India and how the country's emerging economic landscape has the potential for exciting opportunities
The improved economic landscape, coupled with government efforts to transform India into a manufacturing hub is resulting in greater demand for energy.
The present socio-economic scenario is leading to a number of threats and risks as well as a plethora of opportunities for the tank storage industry. A section of leading players of the bulk liquid industry believe that the increase in the volume of liquid imports and exports will drive conversion from containers to bulk for a number of liquid products. Conversion away from containers to bulk is a unique feature in the maritime industry in recent years.
For major ports in India with a capacity utilisation of over 80%, efficient and safe handling of increasing bulk liquids is a challenge. Major privatisation initiatives and concession agreements are focused on developing and expanding container handling capacity at the ports, terminals as well as inter-modal corridors.
However, the process of developing bulk liquid industry infrastructure does not receive similar attention as container handling infrastructure. The development of tank storage is carried out by tank storage terminal operators at major ports using a plot of land offered by the port authority, usually at a considerable distance from the jetty. These tank storage terminal operators have no control over the development of marine infrastructure, which is a function of the port authorities.
CRZ regulations and environment compliance requirements necessitate locating the storage tanks at a considerable distance from the ship side and marine jetty, leading to additional investment in longer and bigger pipelines.
In addition to the development related threats and risks, a number of business and operations related risks are faced by Indian storage terminals. A substantial operations risk is inadequate understanding and non-compliance of HSE and a number of ISO manuals by a majority of the operating staff. This non-compliance can lead to catastrophic risks. The extent of such risks and threats increases exponentially with the increase in volume of business and higher operations activities.
Inadequate infrastructure in hinterland connectivity and the mode of transportation for petroleum products and petrochemicals leads to another operational risk as the majority of bulk liquids are transported by road.
Pipelines and rail are known to be safer modes. However, a lack of rail infrastructure and rolling stock (dedicated bulk liquid wagons), compels the cargo owners to use road transportation. Multi-modal transport connectivity, using rail and inland waterways transport, provides a good opportunity especially with increased volume of bulk liquids. Some ports and terminals have created rail handling infrastructure at their liquid storage terminals. There are still a number of opportunities in terms of ownership of rolling stock – dedicated bulk liquid wagons and providing multi-modal services.
Business risks associated with recent price deregulation of petroleum products by the government, encourage private players to explore downstream distribution. This will lead to greater demand for storage capacity at every stage of the distribution channel, which presents an opportunity for the operators to expand their capacity. Storage and distribution of bulk liquid is further streamlined in a seamless manner by GST system, what are being implemented throughout the country effective from July 2017.
Systematic risk mitigation measures provide a number of exciting opportunities in emerging economic scenario of India. Green field port developments, especially by the private sector, provides an integrated approach to develop terminals in line with and in parallel to the development of port infrastructure and hinterland connection. During last two decades, private ports have been developed at Pipavav, Mundra, Krishnapatnam, Dahej, Hazira and Dhamra along with parallel liquid bulk handling infrastructure.
Additional opportunities for the development of new ports and tank storage terminals continue, with the announcement of the Sagarmala project. With six new port projects and planned additional port capacity of 1400MMT during the next decade, the entire coastline and inland waterways are being developed. Pan India operators have leveraged their multi-location presence by adopting an integrated management system (IMS), replacing a number of different ISO manuals, thereby improving the level of compliance and mitigating operations risks in addition to using the IMS as an effective business promotion strategy.
Parikh will be speaking more about the threats, risks and opportunities for terminal operators in India on the second day of the Tank Storage Asia conference on September 27 & 28. For more information visit www.tankstorageasia.com.
LBC Tank Terminals' project to triple the capacity of its storage terminal in Botlek, Rotterdam is on schedule.
Project 'Rainbow' involves tripling the current capacity of the facility as well as significantly improve its jetty and land infrastructure. Following the initial groundbreaking in February 2016, the operator commissioned the construction of 16 new stainless steel, heated and insulated chemical storage tanks with a capacity of 36,000 m3. This was done off site to reduce any potential safety and operational impacts within the existing facility.
The new tanks we shipped to the terminal in Rotterdam at the end of November 2016 and installed. Following this, the facility experienced a 50% increase in its total capacity.
Work is now underway to fill the recently constructed pipe racks with 20,000 meters of piping next to a new firefighting system. Building work is underway for a new centralised truck loading installation complete with six new weighbridges.
Additionally, the jetty structure at the fruit harbour is being built, as is the armature for the jetty.
In a statement, LBC says: 'We are well underway to achieving our ambition. This project not only contributes to our strategic business model but is aligned with our vision to create a sustainable future where there is no such thing as a dangerous product, at least not when in our care.'
Enterprise Products Partners and Navigator Holdings plan to develop an ethylene marine export terminal on the Houston Ship Channel.
Under the terms of the letter of intent, Enterprise will manage the construction, operations and commercial activities of the terminal, which will be located at its Morgan's Point complex.
The export terminal will be connected to Enterprise's high-capacity ethylene salt dome storage and ethylene pipeline system, which is currently under construction.
The storage facility will have 600 million pounds of capacity. Its pipeline system will be connected to multiple producers and consumers of ethylene on the US Gulf Coast.
In a statement, Enterprise says that the storage and pipeline system, along with the export terminal, will provide the petrochemical industry with logistical flexibility and an outlet to international markets. The petrochemical industry in the US is flourishing at the moment, and ethylene production capacity is expanding by 45% between 2016 and 2020.
A.J 'Jim' Teague, CEO of the general partner of Enterprise, says: 'Customers would have the ability to manage the transportation and storage of ethylene supplies from the tailgate of producing facilities to domestic and international consuming derivative plants. The proposed ethylene export terminal would provide US petrochemical companies critical market diversification rather than relying solely on polyethylene export markets.'
Oiltanking, Vopak and Gasunie will establish a joint venture to own and operate a LNG terminal in Northern Germany.
The three companies acquired approval under the EU Merger Regulation and the decision is a milestone within the feasibility study, which the companies are currently conducting.
The companies are jointly investigating the possibilities for constructing and operating a multi-service LNG terminal, including import and small scale services, in Northern Germany. The location under investigation is Brunsbüttel along the Elbe River, close to Hamburg.
In a statement the companies say: 'This positive decision of the European Commission is an important milestone in developing a LNG facility in Northern Germany.'
The study consists of economic, technical, nautical and regulatory assessments as well as the permits procedures.
The companies are now ready to jointly work towards the next development phase.
Greenergy has acquired independent fuel supplier Inver Energy, including a range of storage assets in Ireland and the UK.
The acquisition gives Greenergy a presence in the growing Irish market for the first time. Inver's business activities include import and storage facilities and fuel supply operations in Ireland, as well as an Irish retail dealer network.
Inver supplies petrol, diesel, aviation fuel and heating oil to commercial and retail customers. It has a 50% shareholding in the AFSC import and storage facilities at Foynes in Ireland. It also owns a terminal in Cardiff in the UK, a portion of which is leased to Greenergy. East Cork Oil Company will continue as the other 50% partner in the AFSC import terminal in Foynes.
Andrew Owens, Greenergy chief executive, says: 'It's been a long-term ambition of Greenergy to participate in the Irish market. As entrepreneur-founded private businesses, Greenergy and Inver are a perfect structural and cultural fit to fulfil this ambition.'
Sempra Energy's subsidiary has been given a contract to build and operate a receipt, storage and send-out liquid fuels marine terminal on the Mexican Gulf Coast.
Infraestructura Energética Nova (IEnova) was awarded the 20-year contract by Veracruz Port Administration in Mexico for the new terminal, which will have a capacity of 1.4 million barrels of petrol, diesel and jet fuel to supply the central region of Mexico. Operations are expected to start in the second half of 2018 at the $155 million facility.
IEnova will be responsible for the development of the liquid fuels terminal project, including obtaining permits, engineering, procurement, construction and financing as well as maintenance and operations.
Joseph Householder, corporate group president of infrastructure businesses for Semptra Energy, says: 'This project represents an exciting new market entry for IEnova in Mexico. IEnova continues to position itself strategically to help develop Mexico's energy infrastructure.'
A range of high-level technical professionals from across the tank terminal industry have been announced as judges for the 2018 Global Tank Storage Awards.
The cross section panel of 11 impartial judges from across the industry includes representation from oil majors Shell Trading and BP Oil, as well as respected terminal operators including Vopak, Oiltanking, VTTI, LBC Tank Terminals, Inter Terminals and Koole.
The list of judges for the 2018 event in Rotterdam are:
- James Foster, trading manager at BP Oil International
- Jonathan Silk, technical manager, Oiltanking Odfjell Terminal Oman
- Niels van Bladeren, chief financial officer, LBC Tank Terminals
- Laurent Hatzopoulos, manager, third party storage, Shell Trading
- Margit Blok, global HSE director, VTTI
- Keith Jackson, operations director, InterTerminals
- Oliver Stanelle, general manager central engineering, Oiltanking
- Roel Brouwer, international technical advisor, Vopak
- Corne van de Reijt, global manager, project management, Vopak
- Erik van Ommeren, technical director, Koole Tank Storage & Transport
- Guest judge Will Crawford, director, Concrete Canvas
The 2018 awards also features guest judge Will Crawford, director at Concrete Canvas, who will sit on the panel when judging the 'Most Innovative Technology Award'.
The event will take place after the first day of StocExpo Europe on March 20 at the Cruise Terminal Rotterdam.
Event organiser Margaret Dunn says: 'Our first awards ceremony and gala dinner received fantastic feedback from the industry. We wanted to ensure we took on board all the feedback received and use it to make further improvements and make next year's event even better.
'One area of feedback was that people wanted more high-level technical experience included on our judging panel, and this year's line-up certainly reflects that.'
Nominations for the awards categories, which includes a greater focus on the latest technology and innovations in the industry, are now open.
For more information on the judges, award categories and to book your place at next year's event, visit www.tankstoragemag.com/awards.
Irving Oil has completed its marine terminal expansion project to add a new fuelling berth for offshore vessels.
The $20 million investment comprised a new berth on Pier 23, adjacent to the company's existing facilities on Pier 24, doubling the number of vessels that can access marine gas oil via pipeline at its marine terminal.
It allows two vessels to refuel at the same time – reducing wait times and congestion in the port, and improving harbour logistics.
Ian Whitcomb, president of Irving Oil, says: 'Demand for MGO is rising, driven largely by growth in the offshore energy industry. Our customers depend on us to carry out their business, and we're proud to invest in our facilities to meet supply requirements today, and in the decades ahead.'