Latest storage news
Harvest Pipeline Company and Vitol have signed an agreement to jointly develop a crude oil terminal in the Port of Corpus Christi.
The agreement is in response to increased demand for crude transportation from South Texas and the Permian Basin as well as to help satisfy the growing need for export capacity along the Texas Gulf Coast.
The project will complement Harvest's existing South Texas business by providing Eagle Ford barrels a new terminal connection from Harvest Midway junction. It will also provide a new waterborne outlet for the growing number of Permian barrels that are seeking access to international markets.
As more barrels flow to Corpus Christ from the Permian Basin, additional storage will be developed at the emerging Midway hub.
Mark Couling, head of crude oil for Vitol, says: 'Crude demand, particularly in emerging markets, continues to grow and US shale has an important role to play in satisfying this demand. Our new pipeline and terminal will facilitate the efficient delivery of US crude to global markets, thereby increasing marketing opportunities and optimising value for US producers.'
The companies have reached an agreement with the port for the location of the terminal development and dock access. They are also reviewing the option of constructing a private dock for the parties' sole se at the oil terminal facility.
Barrels will have access to the terminal via a new 16-inch lateral pipeline.
Oiltanking has commissioned a new terminal in Matola, Mozambique as well as increasing its ownership share in Oiltanking Mozambique.
By increasing its ownership share in Oiltanking Mozambique, the company will expand its investment in the ports of Matola and Beira. It has increased its direct stake from 60% to 80%.
The terminal in Matola received its first vessel on November 26, 2017. The facility's initial storage capacity will be 58,600 m3, with land available for further development. It has access to a jetty with a draft of 11.5 meters.
It is equipped with rail and truck loading facilities to serve southern Mozambique and neighbouring countries including Swaziland, Zimbabwe, Botswana and the northern provinces of South Africa.
The company is planning to build a large-scale pressurised LPG terminal on the available land in Matola of up 33,000 m3, as well as adding another 70,000 m3 of liquid storage.
Additionally, another terminal is planned by Oiltanking in Beira. It is currently in the development stage, but it will facilitate gas and petroleum product imports into the central part of Mozambique, Zimbabwe, Malawi, Zambia and the Democratic Republic of Congo.
Lo Vanhaelen, MD of Oiltanking Matola, says: 'Mozambique is one of the main transit hubs for petroleum products on Africa's east coast. The recent transaction and other projects will further strengthen Oiltanking's presence in Africa and enhance our ability to serve new market segments on the east coast of the continent.'
PT2SB executives have signed a $1.25 billion senior financing agreement with a banking syndicate of nine international banks.
The banks will be used to finance the PT2SB industrial terminal in Pengerang, Malaysia, a joint venture between Petronas, Dialog, the state of Johor and Vopak.
Construction work on PT2SB started in early 2015 and it is scheduled for commissioning in various phases during the first half of 2019.
It will predominantly serve the Petronas refinery petrochemicals integrated development project as its main customer. It will have an initial storage capacity of 1.65 million m3 for crude, refined products, petrochemical products and LPG. The marine infrastructure includes 12 berths and the draft of 24 meters can also accommodate VLCCs.
The project’s costs of $1.6 billion will be 20% funded with equity contributions by the shareholders and 80% is provided in the form of project financing through the banking syndicate.
Enterprise Product Partners plans to convert one of its NGL pipelines to crude oil service.
The pipeline currently transports NGL's from the Permian Basin to the Texas Gulf Coast and the conversion is expected to be completed in the first half of 2020.
The conversion will provide Enterprise with total crude oil pipeline capacity of more than 650,000 barrels per day from the Permian Basin to Enterprise's crude oil hub in the Houston area.
Enterprise has three existing NGL pipelines that stretch from the Permian Basin to the Texas Gulf Coast: the Seminole Blue, Seminole Red and Chaparral.
The Shin Oak NGL pipeline, which is expected to be complete in the second quarter of 2019, provides the company with the flexibility to divert NGL volumes from at least one of its existing NGL pipelines onto Shin Oak and repurpose the vacated NGL pipeline to crude oil service. It is currently evaluating which NGL pipeline to repurpose.
A.J Teague, CEO of the general partner of Enterprise, says: 'We have had strong demand for crude oil transportation, storage and marine terminal services for crude oil production from the Permian Basin.
'This repurposing of an NGL pipeline to crude oil service is another example of our system flexibility.'
Castleton Commodities International and Junction Energy Capital have broke ground on a $128 million oil storage and distribution facility.
The Corpus Christi Marine Storage Terminal, located on the Joe Fulton Corridor next to the M&G Chemicals plant in the Port of Corpus Christi, has been designed to load oil and gas products piped in from the Permian Basin and Eagle Ford shale plays.
It is expected to be operational in 2019.
A marine facility included in the construction project will provide docking for ships. It will store 4.5 million barrels of crude oil and process 100,000 barrels per day. Three docks will be built to load tankers for shipping.
The first phase of the project includes one dock and six storage tanks that will hold 250,000 barrels each.
Rob Johnson, of Junction Energy, says: 'The idea is to take barrels being produced in the Permian and Eagle Ford, ship them through the facility, load them on the vessels for the ultimate transport to other parts of the US and the world.'
Saudi Aramco's Jazan refinery and terminal mega project will herald the beginning of a historic new economic era for the region.
During a visit to the Jazan Economic City, refinery and terminal mega projects, president and CEO Amin Nasser said that once complete, Jazan will be transformed.
Commissioning activities for the complex will commence by mid-2018, and full operation will be achieved by 2019.
The projects are designed to enable an industrial springboard to achieve the vision of a diversified economy under the framework of the Kingdom's strategic Vision 2030 economic road map.
The 106-aquare kilometre complex will host the refinery as its anchor tenant and is viewed as pivotal to delivering much-needed economic transformation in the Jazan region and, at the same time, attract foreign investment.
Nasser said: 'It is a shared effort. We are in this together; we need to continue to move ahead as we are in the midst of creating a new and thriving era in Jazan. We are creating history, and five years from now, we will see a different Jazan.'
After hitting a record low on November 13, stocks have risen by 20% on the back of a rebound in heavy distillate volumes, S&P Global Platts Analytics said in a report.
Stocks of light distillates, including petrol and naphtha, rose 9.1% week on week to 4.656 million barrels, but remain largely rangebound, in line with levels seen in recent weeks. Demand in both Asia and the Middle East is strong, which is drawing in rising European volumes due to a closed trans-Atlantic arbitrage to the US.
Meanwhile, refinery outages and delays in the Middle East are contributing to tighter regional petrol supplies, Platts Analytics said. Stocks of middle distillates fell 18.7% week on week to 1.212 million barrels, hitting a new record low for the third consecutive week.
The spread between the front-month Singapore gasoil swaps and ICE gasoil futures narrowed to minus $7.46/mt on December 5, which is not wide enough for the arbitrage from East of Suez to Europe to work. Fundamentals for gasoil in Asia and the Middle East are seen as stable, although a closed arbitrage to Europe continues to squeeze premiums for Mean of Platts Singapore 10 ppm gasoil. Given the closed arbitrage, cargoes from India and the Middle East were likely to flow to Singapore instead, Platts Analytics said.
Stocks of heavy distillates and residues rose 12.9% to 12.314 million barrels. Stocks were at a 20-week high and have risen by 48% since hitting a nine-month low of 8.32 million barrels on November 13. This was partly the result of a more supportive market structure for storage.
The front-month time spread for Arab Gulf 180 CST swaps has been in backwardation since August 3, discouraging stock-building. The spread flipped into a contango of minus 50 cents for the first time since August 3 on December 5.
Local sources said that increased fuel oil supplies arriving in Fujairah from Iran, where domestic gas supply is back to normal following the end of maintenance at the South Pars fields, Platts Analytics said.
On the demand side, latest developments suggest that Pakistan State Oil (PSO) will continue to receive fuel oil cargoes from Fujairah. This follows a recent government order enabling fuel oil purchases by power plants to continue, seemingly overriding a previous decision in October to shut down fuel oil burning for power generation to reduce pollution in Punjab, the country's' most industrialised and populated province. PSO has tendered for a total of 455,000 mt of high sulfur fuel oil for loading from Fujairah in January.
The Global Tank Storage Awards are an excellent opportunity to recognise and reward employees, colleagues and even your boss for their success.
Accomplishments can range from length of time with a company, over-achieving on a particular project or even the successful launch/implementation of a new technology.
Winners will be chosen by a panel of leading terminal operators & oil companies from around the globe, including:
James Foster, Trading Manager, BP Oil International
Manager, Third Party Storage, Shell Trading
Jonathan Silk, Technical Manager, Oiltanking Odfjell Terminal Oman
Niels Van Bladeren, Chief Financial Officer, LBC Tank Terminals
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
Winners will be widely promoted within Tank Storage Magazine and online; be given a 'winners logo' to use in marketing materials and benefit from international recognition at Easyfairs' events.
The winners will be announced during the annual Gala Dinner & Awards ceremony in Rotterdam, during StocExpo Europe, on March 20.
Nominations are entirely free to charge and the deadline is the 22nd December - submit your nomination now
BP Biofuels and Copersucar will own and operate a major ethanol storage terminal in Brazil.
The 50/50 joint venture will own and operate the Terminal Copersucar de Etanol in Paulínia in the state of São Paulo, which is currently solely owned by Copersucar.
It has ten tanks with a total storage capacity of 180 million litres of ethanol and moves around 2.3 billion litres per year, with the potential for further expansion. It is located in one of Brazil's main fuel hubs and operates in a multimodal way, connected to important transport networks, pipelines and will soon be connected to the railway.
The facility supports the strategy of both companies – connecting important ethanol production with flexible storage capacity close to the main ethanol consumer markets in Brazil. The terminal will continue providing services to its current customers.
Dev Sanyal, BP's CEO of alternative energy, says: 'Brazil is one of the largest markets globally for ethanol as a fuel and this collaboration with Copersucar enables us to extend and expand our existing value chain to meet its growing demand.'
Paulo Roberto de Souza, president of Copersucar, says: 'The new joint venture will optimise ethanol logistics, with competitiveness gains and more flexibility in the way we serve the market. In addition to the values we share, the partnership with BP reinforces our commitment to the development of biofuels in Brazil.'
OPEC oil production output cuts have been extended to the end of 2018 as global oil demand has flourished along with the global economy.
At its 173rd meeting in Vienna, OPEC members and non members agreed to continue the production adjustments until December 2018 'while assuring full and timely conformity'.
Additionally, OPEC stipulated a clause in the new agreement which allows it to re-evaluate conformity and stock levels in June 2018. At that time it will examine prevailing market conditions and the progress made towards rebalancing.
Member countries that agreed to the extension continue their focus on a stable and balanced oil market in the interests of both consumers and producers.
The meeting observed that market rebalancing has gathered pace since May, with the OECD stock overhand falling to around 140 million barrels above the five-year average for October.
Crude oil in floating storage has also significantly fallen over the period. Global oil demand has also been robust with upward revisions since May, with oil demand growth standing above 1.5 million barrels a day for both 2017 and 2018.
HE Khalid A. Al-Falih, Saudi Arabia's Minister of Energy and president of the conference, says: 'There is now global recognition that without our collaborative action, the market would have continued to exhibit extreme volatility and future uncertainty, with far-reaching negative consequences for producers, consumers, investors, the industry, and the global economy at large.
'Oil demand growth, on the other hand, is on firm ground, and the direction of the market over the past several months shows a distinct improvement in both fundamentals and the overall market sentiment. This gratifying outcome has resulted primarily from 100% - or more- compliance to the production targets by OPEC and non-OPEC producers.
'Such positive developments to date show that we're heading in the right direction – but we are still not where we want to be in terms of inventories reaching their target levels, and must remain resolutely focused on this task.'
A new oil storage terminal project has been announced in the Bahamas by Oban Energies.
TECS Netherlands has been awarded a contract for the FEED work for the facility, which will provide storage for crude oils, residual fuel oils, middle and light distillates, specialty vegetable oil and heavy oils. The facility will also consider all other bulk liquid storage requests.
It will commence with an initial capacity of four million barrels, with plans to expand capacity to 20 million barrels by the fourth year of operation.
TECS has been contracted to design the facility to allow all design aspects to meet the EIA and EMP project approval stages.
The preliminary contact awarded covers the entire terminal engineering scope, from VLCC-jetty and piping to inland support vessel harbour, storage tanks, terminal lay-out and all auxiliary facilities such as water and waste water facilities, vapour treatment and power generation.
Further growth is planned for HES International's portfolio of tank terminals after the company doubled its tank capacity.
The company's HES Botlek Tank Terminal in the Port of Rotterdam has taken into service an additional 277,000 m3 of tank capacity, take its total capacity to 490,000 m3. Additionally, it also expected to start construction of an additional 130,000 m3 of tank space shortly. The most essential permits and commercial agreements are already in place for it.
HES will build a new jetty to accommodate tankers up to Suezmax size to support the expansion of the terminal.
The company recently completed the acquisition of the asphalt and bitumen terminal from Valt.
Jan Vogel, CEO of HES, says: 'HES International has a long standing history and a strong track record in providing safe and reliable storage and port infrastructure at key locations in Europe.
'The realisation of these key infrastructure projects but also our recent acquisition from Valt are a central part of this strategy. We are equally excited that we see similar developments and opportunities at most of our other terminals.'
Total refined product stocks at the UAE port of Fujairah stood at 16.665 million barrels in the week to November 27, up 5% from the previous week, according to data from the Fujairah Energy Data Committee, or FEDCom.
After hitting a record low on November 13, stocks have risen by 10% in two weeks on the back of a rebound in heavy distillate volumes, S&P Global Platts Analytics said in a report.
Stocks of light distillates fell by 9.1 % week on week to 4.267 million barrels, but have remained largely range bound over the past two months, the data showed.
Globally, petrol trading activity saw a lull recently due to the Thanksgiving holiday in the US.
Stocks of middle distillates fell by 2.7% week on week to 1.49 million barrels, marking the second consecutive record low for middle stocks.
Stocks of heavy distillates and residues rose by 13.1% week on week to 10.908 million barrels, the data showed. Stocks climbed above 10 million barrels for the first time in nine weeks, and are up by 31% from a nine-month low of 8.32 million barrels on November 13.
A backwardated market structure has weighed against holding fuel oil in storage, but this has moderated recently. The front month backwardation in Arab Gulf 180 CST swaps has narrowed to an average of $1.10/mt so far this month, compared with $1.73/mt in October and $2.02/mt in September.
Cargoes moving from the Middle East to Singapore are estimated at 2.5 million mt for November and will likely edge higher in December, with Singapore fuel oil prices currently $7-$8/mt above the Arab Gulf. Added to this, the Fujairah bunker market is still seeing sluggish demand, with less regional need for fuel oil in power generation due to the winter season, Platts Analytics said.
Easyfairs, the organiser of StocExpo Europe, Tank Storage Asia, StocExpo Middle East Africa, Tank Storage Germany, Tank Storage Magazine and the Global Tank Storage Awards has added a comprehensive Suppliers Directory to its ever-growing portfolio.
The Tank Storage Suppliers Directory will go live at the beginning of 2018 and will be a fully searchable list of every equipment supplier and service provider in the tank storage industry.
The directory will be free for all users in the tank terminal industry and will be fully mobile-responsive.
By making use of Easyfairs’ global database of over 80,000 storage professionals, everyone in the industry will have access to the Tank Storage Directory.
The Suppliers Directory is the first step in the launch of the all-new Tank Storage Intelligence platform. Due to be launched in early 2018, Tank Storage Intelligence will be the central online information portal for everything you need to know about the tank storage sector.
The Tank Storage Suppliers Directory will be promoted via the industry leading publication Tank Storage Magazine at over 35 storage events globally, including exclusive delegate bag distribution at ILTA, NISTM, FETSA’s annual general meeting and all Easyfairs events.
Suppliers and service providers can appear in the directory for just €250. Each company will be listed in up to three categories and listings include a company logo, description, contact details, email address, social media links and the ability to upload a photograph.
Limited platinum options are also available. These give companies the opportunity to always appear at the top of the search listing in their chosen category, be highlighted, include an extended company listing and upload press releases and other company literature.
For further details on the Tank Storage Suppliers Directory, visit the Tank Storage Magazine stand F22 at Tank Storage Germany or contact Margaret Dunn on Margaret@tankstoragemag.com or +44 7905273691. Alternatively contact Nick Powell, Divisional Director, Easyfairs at the Tank Storage Lounge at Tank Storage Germany or at Nick@stocexpo.com
Saudi Aramco and SABIC have signed a MoU to develop a fully integrated crude oil to chemicals complex in Saudi Arabia.
The complex is expected to process 400,000 barrels per day of crude oil, which will produce 9 million tonnes of chemicals and base oils annually and is expected start operations in 2025.
Saudi Aramco president and CEO Amin Nasser says: 'This project converges the commercial and strategic interests of both Saudi Aramco and SABIC, while reinforcing Saudi Aramco's efforts to optimise the investment of our petroleum resources. The complex will also help expand our downstream portfolio, reducing our focus on the transportation sector and securing new and promising commercial opportunities.'
The complex will be constructed based on an innovative configuration that achieves crude oil to chemicals conversion that is unprecedented in the industry.
The project will support the creation of a world-leading downstream sector in Saudi Arabia, as part of the Kingdom's Vision 2030 economic transformation programme.