Latest storage news
Saudi Aramco has competed the rehabilitation and upgrade project of the Yanbu' South Terminal, which adds an extra three million barrels per day of crude oil to its West Coast export capacity.
The facility, located south of Yanbu' along the West Coast of Saudi Arabia, comprises a tank farm and offshore facilities to receive, store and load Arabian Light and Arabian Super Light crude oil.
The company says that the rehabilitation and integration of the facility with the existing crude oil supply network reinforces its role as a reliable, global energy supplier.
Abdullah M. Al-Mansour, executive head of pipelines, distribution and terminals, says: 'The successful startup of the Yanbu' South Terminal is another milestone in reinforcing Aramco's goal to be the world's leading integrated energy and chemicals producer, operating in a safe, sustainable and reliable manner.'
Tallgrass Energy and Silver Creek Midstream are expanding their Powder River Basin JC to include pipeline and storage assets.
The expanded JV, Power River Gateway, will own the Iron Hose Pipeline, the Powder River Express Pipeline and crude oil terminal facilities in Guernsey, Wyoming.
Both Iron Hose and PRE will transport crude oil produced in the PRB from Silver Creek's Pronghorn Terminal to Guernsey, Wyoming, where the crude oil has access to Tallgrass' Pony Express crude pipeline system and two other existing takeaway pipelines.
Tallgrass will operate the JV and owns 51% of the Gateway with Silver Creek owning the rest.
The storage facilities collectively own over 340 acres, include 370,000 barrels of crude storage currently in-service and, once fully constructed, will include over one million barrels of storage.
When combined with Silver Creek's existing assets, it will own and operate 120 miles of existing pipeline and have more than 330,000 acres dedicated from top Powder River Basin producers. The company will further develop the exiting gathering and trunkline infrastructure by an initial 52 miles and more than 100,000 barrels of additional storage.
Tallgrass, which owns and operates Pony Express and is developing both the Seahorse Pipeline and Plaquemines Liquids Terminal projects, provides extensive downstream market access for PRB producers. Powder River Gateway intends to create joint tariffs with both Pony Express and Seahorse.
Tallgrass is pursuing multiple expansion projects on Pony Express to meet the needs of growing PRB production, which will be staged over the next few years.
Silver Creek founder and CEO J. Patrick Barley says: 'Silver Creek is pleased to expand our relationship with Tallgrass in the PRB. Their current and growing long-haul crude transportation capabilities combined with Silver Creek's gathering and transportation assets in the PRB position Powder River Gateway to be the most efficient and flexible transportation and terminal facility in the PRB, offering access to all Guernsey downstream markets.'
Gibson Energy has announced plans to increase storage capacity at its Hardisty Terminal by one million barrels, underpinned by a long-term agreement.
The construction of two new 500,000-barrel tanks, underpinned by a long-term agreement with an investment grade, senior oil sands customer, represents the third phase of development at the Top of the Hill portion of the Hardisty terminal.
This third phase, which will leverage certain infrastructure built as part of the prior phases, is expected to be in service in the first quarter of 2020.
The three phases currently under construction will add seven new tanks, representing an incremental 3.1 million barrels of storage and a 35% expansion of the Hardisty Terminal.
Steve Spaulding, president and CEO, says: 'With nearly a half-billion dollars of sanctioned growth capital relative to an annual target of $150 to $200 million, Gibson has secured the projects required to exceed our 10% growth target through to 2020.
'We also remain in discussions with several existing and potential customers regarding their needs for additional tankage and continue to expect we will sanction two to four tanks per year over the medium-term.'
Green Plains Partners will sell its storage and transportation assets to Green Plains for $120.9 million.
The deal includes the transfer of railcar leases associated with the Lakota, Iowa, Bluffton, Ind and Riga, Mich ethanol facilities. These three plants account for 280 million gallons of nameplate capacity, which works out at 20% of Green Plains reported ethanol production capacity.
A total of 525 railcars managed by Green Plains Partners are anticipated to be conveyed to Green Plains. Additionally, Green Plains Partners has entered into an amendment with Green Plains Trade Group to extend the ethanol storage and throughput agreement for three years.
Todd Becker, president and CEO of Green Plains Partners, says: 'The partnership is in a solid position to grow with availability under its credit facility and a renewed focus on expanding our footprint in the terminal business.'
The transaction is expected to close during the fourth quarter of 2018.
Transnet National Ports Authority is due to start work on the second phase of a new liquid bulk facility project in November.
During an update to stakeholders, executives confirmed that phase one of the infrastructure needed to service the site of the facility, which will be developed and operated by Oiltanking Grindrod Calulo Holdings, is now complete. This includes a new access road as well as detailed design of the new port entrance plaza and the new main access road, including the pipeline servitude that will form the link between the new facility and the port.
Phase two comprises landside development, forming the link between the tank farm and the berth. The port authority will provide infrastructure for the new storage terminal by equipping a berth to function as a liquid bulk berth.
The concept engineering design and the relevant surveys have been completed and construction is due to start in November 2018. The facility will initially have 200,000 m3 of storage, with a final total capacity of 790,000 m3. The planned commissioning is at the end of 2020.
Phase one will cater for dedicated jetty pipelines, bulk storage for up to 200,000 m3, road loading with a vapour recovery unit as well as firefighting facilities and site drainage facilities. Provision has also been made for LPG storage.
In its update TNPA said that the facility has the potential to establish itself as a global transhipment and trading hub for West and East Africa. It will also reduce reliance on the Port of Durban for transhipments to coastal ports.
It is anticipated that the first phase of the project will take two years to complete and that the terminal at the Port of Ngqura will be operational by November 2020.
As of Monday, October 8, total oil product stocks in Fujairah stood at 19.859 million barrels. Inventories were up by 3% week on week to a near three-month high, mainly on the back of a jump in middle distillate volumes.
Stocks of light distillates rose by 2.1% at 7.586 million barrels, remaining at a three month high. The Middle East continues to be well supplied by gasoline from a weak European market. Gasoline inventories in the ARA hub stood at 1.09 million mt (9.12 million barrels) last week - 38.1% above year-ago levels - data from PJK International showed. 'The arb to the [Arab Gulf] is there, picking up in Q4 and Q1, expect to see more demand then,' one source said.
Stocks of middle distillates rose by 12.2% week on week to 4.339 million barrels. This is the highest level recorded for the category since March 27, 2017. Arbitrage to Europe remains limited due to low water levels along the Rhine, which is hampering the flow of barge supplies. This is backing up volumes into the ARA and limiting demand from the cargo market. Nevertheless, robust demand from the Singapore market still provides an outlet for Middle Eastern and Indian exports. Arab Gulf 10 ppm sulfur gasoil premiums in the Middle East eased following a recent tender from a UAE national oil company was heard concluded at around plus 80 cents/b to MOPAG Gasoil assessments.
Stocks of heavy distillates and residues were little changed, edging down by 0.5% to 7.934 million barrels. Bunker demand in Fujairah was mixed, with some suppliers citing brisk inquiries owing to a drop in flat prices, while others said that sentiment was still low. Brent Futures climbed to above $86/b a week ago, but have steadied at around $83-84/b in recent days. Notwithstanding the flat price volatility, demand is seen as slower compared to last month. 'Cargo supply is no longer as tight as compared with the first half of September," a Fujairah bunker trader said. "Off-spec issues boosted Fujairah sales that time [in August] but demand has since returned to usual levels,' the trader added.
Saudi Aramco and the Bahrain Petroleum Company have commissioned the AB-4 crude oil pipeline.
The pipeline is part of plans to meet the Kingdom of Bahrain's growing energy demand and is capable of transporting up to 350,000 barrels per day of crude oil.
The 112-kilometer-long pipeline originates from Saudi Aramco's Abqaiq Plants and terminates at the BAPCO refinery in Bahrain.
The pipeline consists of three segments, a 42km onshore Saudi segment, a 28km Bahrain onshore segment and a 42km offshore segment.
Abdullah Mansour, acting executive head of pipelines distribution and terminals at Saudi Aramco, says: 'The commissioning of AB-4 pipeline is another chapter in the special relationship between Saudi Aramco and BAPCO in several aspects including the energy sector that has flourished for more than 73 years and beyond.'
PERN has announced plans to more than double storage capacity at its Gdansk Oil Terminal with the addition of five tanks.
Launching a tender process, PERN plans to increase capacity at the facility by another 2.45 million barrels as part of its phased growth plans. The first phase of construction is complete, according to the company, and comprises six storage tanks, each with 393,000 barrels of capacity, totally 2.35 million barrels.
It is due to complete the second phase by the third quarter of 2020.
Additionally, it also plans to expand its tank facility in Gorki Zachodnie with the addition of two storage tanks each with 630,000 barrels of capacity.
The storage tanks will be connected to the existing infrastructure of the tank farm in Gdansk and to the remaining pipeline infrastructure of the company. The company says this will 'give more possibilities for oil storage for the company's clients and greater operational capacity for handling vehicles coming to the North Port (PPPP Naftoport).
Tender documents for the design, construction and operation of Cyprus' new LNG import terminal have been released by DEFA.
The LNG terminal will include a floating storage and regasification unit with at least 125,000 m3 of storage capacity to unload LNG from LNG carriers ranging from 120,000 m3 to 217,000 m3, a jetty for mooring the FSRU, a jetty borne gas pipeline and related infrastructure.
Following the completion of a feasibility study in 2016, the government of Cyprus decided to proceed with the facility for the import, storage and regasification of LNG facility near Lemesos.
The facility will be complete by 2020 and has secured a funding of 40% of the CAPEX, up to €101 million as a grant from the EU under the Connecting Europe Facility financial instruments.
Symeon Kassianides, chairman of DEFA, says: 'This is an important milestone for DEFA, and for the people of Cypris, who will soon benefit from the cost savings and environmental benefits from the us of natural gas. We expect to issue a request for expressions of interest for the supply of LNG in the coming weeks and a full tender early in 2019.'
TransCanada will construct the Coastal GasLink pipeline project following the decision to sanction the LNG Canada natural gas liquefaction project.
The project is a 670 kilometre pipeline designed to transport natural gas from the Montney gas-producing region near Dawson Creek, British Colombia to the LNG Canada facility in Kitimat. The pipeline will have an initial capacity of 2.1 billion cubic feet per day (Bcf/day) with the potential for expansion to up to 5 Bcf/day.
Construction on the CAD$6.2 billion project is expected to begin in early 2019 with a planned in-service date in 2023. It is underpinned by a 25-year transportation service agreement with the LNG Canada participants.
Russ Girling, TransCanada's president and CEO says: 'Once constructed, Coastal GasLink will become a critical component of British Columbia's natural gas pipeline infrastructure, connecting our abundant, low-cost natural gas resources to global markets.
'Solid underlying market fundamentals combined with robust commercial support for the project, position us to prudently fund Coastal GasLink over its multi-year construction along with our existing $28 billion near-term capital programme in a manner consistent with our long-established strong financial profile.'
Magnolia Infrastructure Holdings has delivered a non-binding offer to acquire American Midstream Partners.
Magnolia, a subsidiary of ArcLight Energy Partners, has put in an offer to acquire all common units of the partnership and its affiliates for $6.10 per common unit. If approved, it is currently expected that the transaction would be consummated through a merger of the partnership with a subsidiary of ArcLight.
ArcLight says there can be no assurance that any discussion that may occur between the parties will result into a definitive agreement concerning a transaction. The transaction is subject to a number of contingencies.
Saudi Aramco and Total have signed a joint development agreement for the FEED for a giant petrochemical complex in Jubail, Saudi Arabia.
The world-class complex will be located next to the SATORP refinery, operated by Saudi Aramco and Total, in order to fully exploit operational synergies. It will comprise a mixed-feed cracker – the first in the Arabian Gulf region to be integrated with a refinery – with a capacity of 1.5 million tonnes per year of ethylene and related high-added-value petrochemical units.
The $5 billion project is scheduled to start-up in 2024.
The project will also provide feedstock for other petrochemical and specialty chemical plants located in the Jubail industrial area and beyond, representing an additional $4 billion investment by third-party investors.
Amin H. Nasser, CEO of Saudi Aramco, says: 'The petrochemicals sector has been undergoing significant growth globally and is one of the future growth engines. Thus, SATORP's second-phase expansion represents a significant value addition in Saudi Aramco's downstream strategy to maximise the full value of our vast portfolio and position the Kingdom as a chemicals manufacturing and exports hub.'
Patrick Pouyanné, chairman and CEO of Total, says: 'We are delighted to write a new page of our joint history by launching a new giant project, building on the successful development of SATORP, our biggest and most efficient refinery in the world.
'This world-class complex also fits with our strategy to expand in petrochemicals by maximising the synergies within our major platforms, leveraging low-cost feedstocks and taking advantage of the fast-growing Asian polymer market.'
Oiltanking Antwerp Gas Terminal is expanding its gas facility in Antwerp with a new propane tank as part of its partnership with Borealis.
The new 135,000 m3 propane storage tank will supply the Borealis production facility in Kallo, Belgium. Borealis, which produces polyolefins, base chemicals and fertilisers, will built a new world-scale propane dehydrogenation plants in addition to its existing facilities in Kallo. The new PDH plant is scheduled for the beginning of 2022.
Oiltanking acquired the Antwerp Gas Terminal in mid-2016 and since then accelerated working on the facility's significant expansion potential. In early 2017, a contract was signed for the construction of a 135,000 m3 fully refrigerated butane tank that will go into operation in 2019.
Together with the newly planned propane tank, the terminal will have almost tripled its current capacity.
Daan Vos, managing director of Oiltanking West of Suez, says: 'I am looking forward to continue the long-standing partnership and the confidence placed in Oiltanking for handling propylene and propane and the further integration into the logistics chain of Borealis.'
Noble Midstream plans to form a 50/50 joint venture with Salt Creek Midstream for a crude oil pipeline and gathering system in the Delaware Basin.
The JV will be underpinned by acreage contributions from Noble and Salt Creek of 180,000 dedicated acres from Noble Energy and five other southern Delaware Basin producers, with a line of sight to additional dedications totalling 100,000 acres.
The 95-mile, 200,000 barrel of oil per day system will originate in Pecos County, Texas, with additional connections in Reeves County and Wink County, Texas.
It will be served by a combination of in-field crude gathering lines and a trunkline to Wink Hub.
Once the transaction is closed in the fourth quarter of 2018, the project would be underpinned by 180,000 dedicated acres and nearly 100 miles of pipeline in Pecos, Reeves, Ward and Winkler Counties. This includes an in-basin oil transportation dedication of the southern portion of Noble Energy's Reeves County position totalling 70,000 acres.
Salt Creek has started building the pipeline and is expected to be operational in the second quarter of 2019. The project provides access to 200,000 barrels of new crude oil storage, with expansion potential to 300,000 barrels.
Terry R. Gerhart, CEO of Noble Midstream, says: 'The pipeline system will provide critical downstream connectivity and enhanced market optionality for producers in the southern Delaware Basin.'
Vitol is set to acquire 50% of Brazilian downstream company Rodoil.
The company is a market leader in the southern part of Brazil, with a downstream network comprising 300 service stations and a distribution business supplying an additional 1,400 plus service stations through its network of 10 strategically located terminals.
It was founded in 2006 by current CEO Roberto Tonietto, who will continue to lead Rodoil from its headquarters in Caxias do Sul.
Russel Hardy, Vitol CEO, says: 'Brazil has significant potential and is already the world's 6th largest fuels market. Rodoil's rapid growth since it was founded in 2006 demonstrates both the market potential and quality of the company's leadership. We are pleased to invest in Rodoil's plans for expansion and look forward to working with the management team to strengthen the company's downstream footprint.
The transaction is expected to close in the fourth quarter of 2018.
As of Monday, October 1, total oil product stocks in Fujairah stood at 19.272 million barrels. Inventories jumped by 17% week on week to a nine-week high.
Stocks of light distillates rose by 26.1% at 7.432 million barrels - a three month high. Steady demand in the Middle East is pulling in increasing volumes of gasoline from the Mediterranean, which is now long on supply after a tight summer. 'The Med is still long, it's even longer now in the winter..... demand is not there, it depends on where the arbitrages are,' one source said. The arbitrage from the West to the East is still open, as strong demand and refinery issues in the East cause the EBOB/92 RON spread to widen.
Stocks of middle distillates fell by 2.9% week on week to 3.868 million barrels. Sentiment in the middle distillate market is diverging, with robust gasoil set against weakness in jet fuel. Tighter supply out of India is supporting gasoil heading into what is traditionally a strong winter period in 4Q. For jet fuel, a strong Exchange of Futures for Swaps (EFS) has limited movements from India and the Middle East to the West of Suez, further exacerbating the plentiful supplies. North Asia is seen as oversupplied, while rising fuel cost and weakening currencies in a number of Asian markets could begin to impact jet demand.
Stocks of heavy distillates and residues jumped by 21% week on week to 7.972 million barrels, rebounding from last week's six month low. Bunker demand in Fujairah was subdued in recent days following a surge in flat prices on the back of higher crude futures. With Brent prices at four-year high, delivered prices for 380 CST in Fujairah rose above $500/mt for the first time since October 2014. Short-term demand was likely to stay average to slow as some buyers had already booked before the uptrend, market sources said. Fujairah continues to see some additional demand due to off-spec issues in Singapore; delivered 380 CST fuel in Fujairah was assessed at $11.15/mt above Singapore yesterday.
PBF Logistics has completed the acquisition of a series of storage assets from CPI Operations.
The assets include a storage facility with four million barrels of multi-use storage capacity and other idled assets on the Delaware River near Paulsboro, New Jersey.
The other assets include an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and other assets. With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities with PBF Logistics' sponsor PBF Energy.
PBF expects to invest $8.5 million over the next two years in projects to enhance facility capabilities and expects to achieve run-rate EBITDA of $15.5 million at the end of 2020.
Matt Lucey, PBF Logistics executive vice president, says: 'The ongoing execution of our strategic plan continues to deliver meaningful accretive growth for the partnership. The acquisition of the East Coast Storage Assets also strategically positions the partnership for the upcoming IMP's low-sulphur fuel specification change in 2020 by adding significant marine-accessible storage assets to our portfolio.
'The marine facilities are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy high-sulphur refinery feedstocks and increase synergy opportunities with our sponsor, PBF Energy.'
Trafigura and IEnova have entered into a joint venture agreement to develop a marine storage terminal for refined products in Manzanillo, Colima.
The companies have also executed a long-term terminal services agreement for 740,000 barrels of storage capacity at the marine facility for the receipt, storage and delivery of refined products. As part of the agreements, IEnova also acquired 51% of the equity of the company whose subsidiary owns certain permits and land where the project is planned to be built.
IEnova will have control over all aspects of project implementation, including finalising permits, securing customers for the additional capacity, and completing detailed engineering, procurement, construction, financing, operation and maintenance of the terminal.
The facility will be capable of leading refined products onto rail and trucks, which will enable its customers to supply fuels to demand centres in the Manzanillo, Colima area as well as in Guadalajara, Jalisco area, which is the second largest demand centre in Mexico. It is estimated that the initial phase of the terminal will have a storage capacity of 1.48 million barrels with opportunities for expansion.
The project is estimated to cost $200 million and commercial operations are expected to start at the end of 2020.
This terminal is IEnova's sixth refined products terminal in Mexico, which the company says demonstrates its commitment to developing infrastructure in the country that enhances energy security and the reliability of refined product supply.
Shell, Petronas, PetroChina, Mitsubishi and Kogas have approved construction of LNG Canada, an LNG export facility in northern British Columbia.
From a list of 500 possible sites for a large-scale LNG export terminal, LNG Canada selected Kitimat in the traditional territory of the Haisla Nation.
Each of the joint venture companies will be responsible to provide its own natural gas supply and will individually offtake and market its share of LNG. The project will initially export LNG from two processing units for an estimated 14 million tonnes per annum with the potential to expand to four units in the future.
'The final investment decision taken by our joint venture participants shows that British Columbia and Canada, working with First Nations and local communities, can deliver competitive energy projects, says Andy Calitz, CEO, LNG Canada.
'This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous reconciliation.'
To get the natural gas from the Montney basin in the north of the province to Kitimat, LNG Canada has contracted with TransCanada, who will build, own and operate the 670-km Coastal GasLink pipeline.
Construction is expected to take five years, at which time LNG Canada will provide natural gas to countries where imported gas could displace more carbon intensive energy sources and help address global climate change and air pollution. JGC Fluor is the EPC consortium the company selected to build the plant.
Marathon Petroleum has acquired all of the outstanding shares of Andeavor.
Now that the transaction is closed, Andeavor ceased to be publicly traded and its common stock discontinued trading on the New York Stock Exchange.
Marathon Petroleum chairman and CEO Gary R. Heminger says: 'This transformative transaction is a significant milestone in our company's more than 130-year history.
'MPC is now the leading refining, midstream, and marketing company in the US and is well-positioned for long-term growth and shareholder value creation.
'We are excited to begin unlocking the extraordinary potential across our new platform, including approximately $1 billion of tangible annual run-rate synergies we expect within the first three years.'
As of Monday, September 24, total oil product stocks in Fujairah stood at 16.465 million barrels – down by 8.5% week on week.
Stocks of light distillates were almost unchanged week on week at 5.892 million barrels. The Middle East continues to draw a steady flow of gasoline from Europe, with additional vessel fixtures continuing to emerging. Kuwait's KPC issued a spot tender seeking the delivery of 25,000 mt of 91 RON gasoline for delivery over October 5-6 to Mina al-Ahmadi in a tender that closed yesterday. Premiums for Arab Gulf RON 95 gasoline remained steady at $3.50/b yesterday.
Stocks of middle distillates fell by 4.8% week on week to 3.982 million barrels. Stocks fell from a near 14-month high last week but remain well above the average of 2.96 million barrels so far this year. Middle Eastern middle distillates are increasingly drawn to the East. Cracks and premiums for gasoil are strengthening in the Asian market even as the Western arbitrage route is firmly closed; the East-West gasoil exchange for swaps rose to an 18-month high of minus 9 cents/b yesterday. A market participant said that gasoil volumes from the Middle East were seen coming to Singapore, attracted by the high prices here - a reflection of the strong demand pull. 'I think it's still a bullish market. AG [gasoil barrels] are coming to Singapore.'
Stocks of heavy distillates and residues fell by 16.8% week on week to 6.951 million barrels - a six month low. Bunker demand in Fujairah was reportedly softer so far this week average to slow due to the uptick in flat prices, while delivered supply was less tight compared with the first half of the month. Bunker prices are moving higher in line with crude, as Brent futures pushed above the $80/b mark this week. Fujairah has seen increased demand over the past month due to specification issues in Singapore. However, this appears to be waning; 380 CST delivered bunkers in Fujairah were pegged at $4/mt above Singapore yesterday – down from over $20/mt seen last week.
Stolt-Nielsen, Golar LNG and Höegh LNG have announced an investment of $182 million in Avenir LNG.
The investment by the consortium will be contributed as cash and equity-in-kind and will fund the construction of six small-scale LNG carriers, a small-scale storage terminal and regasification facilities.
The company was formed by Stolt in 2017 to provide LNG to markets lacking access to natural gas pipelines. With this joint investment, Stolt will consolidate all its LNG activities into Avenir, including four LNG new buildings on order at Keppel Singmarine in Nantong, China and the joint venture LNG terminal and distribution facility to be constructed in the port of Oristano, Sardinia.
Avenir plans to source and ship LNG to the terminal using small LNG carriers, and to distribute the LNG in trucks and through regasification into local network grids.
Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen, says: ‘The combination of Stolt-Nielsen’s logistics capabilities and our partners’ experience in LNG carriers, FSRUs and FLNGs positions Avenir as an emerging leader in small-scale LNG logistics for the power, bunkering, trucking and industrials markets.
‘With the implementation of the IMO’s 2020 emissions regulations approaching, demand for LNG as a cleaner, low-sulphur marine fuel is increasing. Each of the LNG newbuildings is designed to perform safe and efficient ship-to-ship LNG bunkering, which Avenir LNG plans to introduce at key strategic ports.’
USD Partners has entered into a four-year extension with Canovus Energy from 7% to 25%.
The renewal contains consistent take-or-pay terms with minimum monthly payments and rates that exceed those of the original terminalling services agreement with the customer.
Jim Albertson, USD’s senior vice president, Canadian business unit, says: ‘This contract extension, along with the first extension we announced earlier this year, represents a meaningful increase in our contracted capacity at the Hardisty rail terminal and is confirmation of the significant demand that exists for takeaway capacity out of Western Canada. We continue to work with the balance of our customers as well as new customers on contracting the remaining available capacity.’
A build-to-operate-transfer contract has been signed for a 10-million-barrel crude oil storage facility.
Iran’s Petroleum Engineering and Development Company signed the contract with a domestic firm. The project is part of the Iranian Petroleum Ministry’s strategic plan to develop Jask Port and deliver crude oil from Goreh, Bushehr to Jask in southern Iran.
The National Iranian Oil Company has 5,000 acres of coastal land near Jask city for the construction of special oil, gas, refining and petrochemical projects.
Thanks to a permit for the construction of the 42-inch Gorejh-Jask crude oil pipeline, part of this land has been allocated for the construction of an oil terminal for the export of crude oil and the construction of crude oil storage tanks at Jask port.
The tanks are being built with 10-million-barrels of light and heavy crude oil capacity. They will store the crude oil pumped from the pipeline. The €200 million project can be expanded to a storage capacity of more than 30-million-barrels of crude oil.
Pin Oak Holdings has sold Pin Oak Terminals to MPLX for $450 million.
As part of the transaction, Pin Oak Holdings will retain an economic interest in the facility. The terminal was the first asset developed, financed, constructed and operated by Pin Oak Holdings.
The greenfield site was acquired in 2012 with the objective of developing a full-service transportation hub on the Mississippi River. The facility has four million barrels of fully-leased storage capacity and an operational deep-water ship dock. It can expand its capacity to 10 million barrels and is permitted for construction of a second deep-water ship dock.
Pin Oak Holdings is a partnership between Dauphine Midstream and Mercuria Energy Group.
C. Mike Reed, CEO of Pin Oak Holdings, says: ‘Our team is very proud to have built a premier storage and logistics facility in Louisiana, and this transaction further validates our development strategy and ability to execute.’
‘Brian Falik, Mercuria’s chief investment officer, adds: ‘Mercuria is pleased to have been a partner in constructing and operating a world-class terminal in Louisiana. We look forward to Pin Oak actively developing additional terminals and forging strong ties with key customers and local communities.’
Pin Oak Holdings recently started construction work on its liquid bulk export terminal in Corpus Christi, Texas. Since acquiring Pin Oak Corpus Christi in 2017, Pin Oak has successfully executed an interconnection agreement with a crude oil pipeline and secured a multi-million-barrel long-term crude oil storage contract, with the capacity to construct additional third-party storage.
Pin Oak Corpus Christi is expected to be operational during the fourth quarter of 2019.
Koole Terminals has now become 100% owner of Odfjell Terminals Rotterdam.
The facility, located in the heart of the Port of Rotterdam, will be rebranded to Koole Tankstorage Botlek (KTB). It stores both chemical and mineral oil products and operates a PID facility.
The sale will generate $100 million of cash proceeds to Odfjell.
John Kraakman, CEO of Koole Terminals, says: 'We are pleased to extend our terminal network and will work hard to transform KTB further into a state-of-the-art terminal, where safety is our priority number one. We are convinced that introducing the Koole spirit of true client dedication and entrepreneurship will help KTB to become a success.'
Kraakman adds that the acquisition fits in with the company's long-term growth strategy. 'It also gives us the opportunity to further extend our position in the circular economy by the storage of renewable products and the production of biofuels.'
Koole's overall storage capacity will increase from 2.2 million m3 to 3.8 million m3.