Latest storage news
Stena Oil has announced plans to build a new marine fuel storage terminal in Denmark in direct response to the IMO 2020 sulphur fuel cap.
The facility in the Port of Frederikshavn will be the largest of its kind in Scandinavia, with a capacity of 75,000 m3 and its location will reduce the distances travelled by bunkering vessels.
The facility has been made possible by major investment in recent years to expand and develop the port. It will be built in a new outer part of the harbour where Stena Oil will have exclusive access to a 300 meter-long quayside with 14 meters draft.
The terminal will collect slops as well as performing several other services. The boat that supplies fuel can carry slops back to the terminal where they are pumped into tanks and cleaned in an environmentally sound process.
It will also provide a base for Stena Oil's European Maritime Safety Agency work, which will provide rapid response ships and equipment for oil spill cleaning.
Jonas Persson, MD of Stena Oil, says: 'We are delighted to be developing our business in Frederikshavn. We will create a state-of-the-art terminal that can handle all fuel types that meet the IMO's global sulphur directive, which comes into effect in 2020.
'In combination with our Gothenburg terminal, we will have the capability to serve our customers even better.
'We are also investing in a bunkering vessel. We are well prepared to meet changing customer needs and the 2020 fuel requirements.'
USD Partners is considering a potential expansion of its Hardisty terminal to meet near-term demand from customers.
In its first quarter 2018 financial result, USD said that customer activity at its Hardisty origination terminal has substantially ramped up and that current market demand exceeds the available capacity at the terminal.
CEO Dan Borgen says: 'Given the current market dynamics and the increased support from the Canadian railroads, we and our general partner are actively negotiating with current and new potential customers to extend the terms of our existing take-or-pay agreements as well as evaluating a potential expansion to meet near-term demand.
'The recent success we had filing the remaining capacity at our Stroud terminal with crude originated at our Hardisty terminal simply validates the significant value our network can provide.'
The company's Hardisty and Casper terminals are well-positioned at strategic locations to meet growing takeaway needs as Western Canadian crude oil supplies continue to exceed available pipeline takeaway capacity. The company believes its Stroud terminals provides an advantaged rail destination for Western Canadian crude oil given the optionality provided by its connectivity to the Cushing hub as well as multiple refining centres across the US.
In a statement, the company says: 'The partnership expects these advantages, including its recent established origin-to-destination capabilities, to result in long-term contract extensions and expansion opportunities across its terminal network.'
In the second quarter of 2018, the company continues to use tank capacity at the Casper terminal to support spot shipments for several customers, with whom it is negotiating term agreements for potential ongoing use of the terminal.
Additionally, the company is pursuing a hub strategy through existing and potential additional connections to other downstream pipelines in the area.
Lindsay Goldberg has announced plans to sell its 49% shareholding in Odfjell Terminals.
The private equity company has been Odfjell's joint venture partner in Odfjell Terminals' US and European terminals since 2011. In 2013, the partnership was expanded to include Odfjell Terminals' global terminal operations.
Odfjell has said that, as part of LG's considered sale, it will evaluate selling its indirect 51% shareholding in Odfjell Terminals Rotterdam. It says in a statement that it 'continues to consider Odfjell Terminals as core business and are committed long-term to owning, developing and operating tank terminals'.
SABIC and ExxonMobil have formed a joint venture to accelerate development of the Gulf Coast growth ventures project.
The project comprises a 1.8 million tonnes ethane cracker, which will be built in San Patricio County, Texas. It will also include a monoethylene glycol unit and two polyethylene units.
Construction of the project, announced in 2016, is pending completion of the environmental permitting process. It is expected to be operational in the 2021 – 2022 timeframe.
'We look forward to the next phaser of the project, which supports not only our goals for global diversification, but also supports Saudi Vision 2030,' says SABIC vice chairman and CEO Yousef Al-Benyan. 'In addition, we are proud of the role the project will play in enhancing the economic profile of San Patricio Country, Texas.'
Total oil product stocks in Fujairah stood at 18.93 million barrels as of Monday, April 30, down 2.7% week on week, after hitting a seven-month high last week, according to data from the Fujairah Energy Data Committee, or FEDCom.
The drop was mostly due to a sharp 10.7% fall in light distillate stocks, which include petrol, slipping to 7.342 million barrels. Premiums for Arab Gulf RON 95 petrol edged up to a 15-week high of $2.90/b as regional demand builds leading up to the start of Ramadan in mid-May, though supply is still seen as largely balanced, S&P Global Platts Analytics said in a report Wednesday.
Kuwait's KPC was reported seeking 25,000 mt of RON 91 petrol via tender for delivery over May 18-19, having last week issued the same volume and grade for delivery earlier in the month. While light distillate inventories fell, stocks of the other product categories grew, with middle distillates up 16.1% week on week to 2.03 million barrels.
Regional gasoil demand is also rising ahead of Ramadan, while additional support has come from tighter fundamentals in other regions. In Europe, lower stock levels and a strengthening market structure continues to pull in barrels from the East, Platts Analytics said.
Stocks of gasoil in the ARA region are at a three-month low and about 30% lower year on year, according to data from PJK International. Asian supply is also relatively tight due to lower export volumes from China and India resulting from refinery maintenance and strong domestic demand, respectively. Stocks of heavy distillates and residues edged up 0.9% to 9.561 million barrels. Bunker demand in Fujairah was reported as healthy this week, although the volatility of crude prices continues to weigh on sentiment.
'No one can predict the market these days due to geopolitical reasons,' a Fujairah-based bunker trader said.
Regional fuel oil demand is expected to pick up in the coming month as summer power demand comes in to play. Saudi Arabia is already increasing fuel oil imports to prepare for summer demand, according to one source.
Howard Midstream Energy Partners & its bulk liquid terminal subsidiary Maverick Terminals has started operations of its new bulk liquid storage terminal in the Port of Corpus Christi.
Operations at the facility include the storage, blending and unit train loading of two grades of petrol - ULSD and petrol blend stocks from various local refineries – for ultimate delivery to global markets.
The new facility comprises six, 80,000-barrel tanks with an aggregate storage capacity of 480,000 barrels. It is permitted for up to 1.25 million barrels of storage, with the capability to expand to up to 2.5 million barrels within the current footprint of 41 acres.
Products can be received by marine vessels and via a 12-inch pipeline, which is connected to Origin Station, providing connectivity to all six refineries in Corpus Christi.
Howard Midstream has also entered into an agreement with the Port of Corpus Christi to engineer and build Dock 20, which will accommodate Suezmax-class vessels for the movement of a variety of bulk petroleum liquids at transfer rates of up to 50,000 barrels per hour.
Mark Helmke, senior vice president of terminals and transportation for Howard Energy Partners, says: 'The expansion of our terminal services to the Port of Corpus Christi is a strategic decision supporting our plan to provide efficient logistics solutions serving producers, refiners, traders, blenders and end-users.
'With the Corpus Christi terminal up and running, we are now able to provide a variety of options along the Gulf Coast for the safe and efficient movement of petroleum and other bulk liquids.'
President and co-founder of Howard Energy Partners Brad Bynum adds that the facility is poised to provide world-class midstream services to clients seeking to export crude oil, refined products and natural gas liquids from the regions major production basins and refining centres to the global markets.
He also says: 'The completion of this facility is also a significant step in our continued plans to develop key infrastructure for the movement of energy commodities into and out of Mexico.'
1) Guaranteed distribution to US terminal professionals: The June/July issue of Tank Storage Magazine is the ONLY publication in delegate bags at this year's ILTA. Our long-running exclusive sponsorship guarantees every delegate takes a copy home with them.
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3) Unrivalled distribution: We print over 8,000 copies of the June/July edition of Tank Storage Magazine. As well as ILTA delegate bag distribution, 3,500+ copies are also posted to key terminal professionals worldwide.* The June/July issue will also be distributed at TankBank in Marseille and Argus Mediterranean Storage and Logistics in Barcelona.
(*As the industry's only audited publication we can independently verify that over 40,000 copies of Tank Storage Magazine are printed each year)
4) Exclusive FETSA AGM Distribution: Tank Storage Magazine is the ONLY publication being distributed at the FETSA AGM in Gothenburg on June 7 - 8. Hosted by member, Scandinavian Tank Storage Company, this event incorporates the annual general meeting for all the key European terminal associations. This guarantees attendance from all the major European terminal operators – and the ONLY magazine they'll be reading at this event is Tank Storage Magazine.
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Free content, leading industry speakers & additional networking led to a 94% visitor satisfaction rate at this year's StocExpo Europe, but next year promises to be better than ever.
Just weeks after the 14th edition of StocExpo Europe came to a close in Rotterdam, work is in full swing to create next year's edition of the industry leading event for the bulk liquid storage sector.
'We are pleased to announce that the initiatives that were such a success in 2018 will all return in 2019 plus much more,' StocExpo & Tank Storage divisional director Nick Powell, explains. 'We are the market leading event in the bulk liquid storage sector and have been for over a decade, with visitor numbers increasing every year, but the event still has room to grow. With every new concept, we're working hard to attract visitors from all the major terminals and fulfil our aim of serving the tank storage community worldwide.'
Initiatives returning to StocExpo Europe in Rotterdam from March 26-28, 2019 include the complimentary EEMUA workshop, late night opening, complimentary iTanks Innovation in Storage sessions, the start-up zone and the Global Tank Storage Awards.
In 2018, The Engineering Equipment and Materials Users Association (EEMUA) ran a full day's workshop, which was free for all StocExpo Europe visitors. The workshop comprised of five sessions detailing procedures and techniques of maintaining tanks throughout their life to ensure safe product storage and efficiency of operation strategies within a tank storage environment.
Following fantastic visitor feedback, this free content will return to the show floor in 2019.
iTanks, a knowledge and innovation platform for the tank storage sector, also ran a free one-day workshop, debating various topics ranging from the future of robotics to sustainability within the tank storage industry. After an excellent response from attendees, this will also be back in 2019.
The late-night opening was another initiative launched to allow maintenance engineers to visit the exhibition outside of their normal working hours. 'By keeping the exhibition open later, we were able to welcome additional visitors who would usually be working during the day,' Powell explains.
This year a start-up zone was introduced allowing brand new companies to try out the event at a reduced entry price. Following its success, this will be back in 2019, designed to ensure the StocExpo Europe exhibition is at the forefront of the sector and showcasing the latest technologies, products & services across the tank storage industry.
The second edition of the Global Tank Storage Awards was a resounding success with many tables already sold for 2019. This year's sell-out gala dinner & ceremony attracted terminal operators from Saudi Arabia, India, Malaysia, South Africa, the US and across Europe. Attendees were treated to a drinks reception, a three-course meal, comedian, award-winning dancers, a casino and much more, allowing an exclusive opportunity to entertain clients & reward colleagues for their hard work throughout the year.
'The evening was a real success, with great food, drinks and entertainment, making the perfect setting to host our clients and network with the other companies represented there,' explains Darren Hughes, international business development manager at Concrete Canvas, one of the sponsors at the 2018 event.
StocExpo 2018 attracted nearly 3,000 visitors from 81 countries worldwide. Of these, 69% of visitors were CEO, director or senior managerial level, reflecting the high calibre of industry leaders that are attracted to the event. Participating companies include Shell, Vopak, VTTI, Rubis Terminal, Vesta Terminals, Odfjell Terminals, Oiltanking, Saudi Aramco, Stolthaven Terminals, Baltic Tank and Kinder Morgan.
'We have already started on our comprehensive year-long marketing campaign for StocExpo Europe 2019,' Powell explains. 'The event may be 11 months away, but we have a dedicated team building global industry visitor data, creating industry leading content and devising new concepts to ensure we retain our position as the market leading event for the bulk liquid storage sector worldwide.'
More than 50% of exhibitors from 2018 have already signed up to next year's show, including the likes of Emerson Automation Solutions, Endress+Hauser, Matrix Applied Technologies, SVT, Kanon Loading Equipment, Geldof, Engie Fabricon, HMT, SafeRack, Protego and Siemens.
'Over the next year we will work closely with our loyal exhibitors to ensure they maximise their experience at the exhibition,' Powell explains. 'Our goal is to ensure our exhibitors meet as many new customers as possible, re-connect with existing customers and raise their profile within the tank storage community.'
Following this year's show, an independent market research company surveying visitors and exhibitors found that 92% visitors would consider attending again, 93% would recommend the event to others and 94% were satisfied with their experience at the conference & exhibition.
Commenting on the success of the event, one attendee, Earl Crochet, director of engineering at Kinder Morgan said: 'This is my second time attending StocExpo Europe and I enjoyed it even more than the first. The speakers were exceptional, both in content and delivery and the topics were very relevant to today's tank storage industry. I look forward to attending again.'
Ethward Manuel, general manager at Bopec, agreed: 'This is an excellent opportunity to exchange experience and learn about the latest developments in the tank storage industry'.
The three-day conference programme is another big draw for delegates worldwide. In 2018 key speakers included Mark Noordhoek Hegt, global director of digital innovation at Vopak, Sally Martin, vice president of HSSE for downstream operations at Shell and Jaap Koomen, general manager, Burgan Cape Terminals.
The 2019 conference programme will cover topics including digitisation at tank terminals, innovations to improve safety, flexible business models to adapt to current market conditions, enforcing cybersecurity at the terminal and how to improve efficiency & profitability to counteract increasing market competition.
Testimonials from 2018 exhibitors at this year's StocExpo Europe include:
• Lucas Ribeiro, international sales manager downstream oil & gas, Implico: 'We have been exhibiting at StocExpo Europe for many years. It is a great place to catch up on the latest developments in the industry and to meet partners and existing & potential customers.'
• 'We travelled from South Korea to exhibit at StocExpo Europe for the overwhelming amount of companies we can meet within our industry. The atmosphere of the show is so exciting and friendly and we have had a lot of fun' said Sungoh Im, sales team Dk-Lok corporation.
• Sharé Mason, business development manager, SA Fire Protection, adds: 'This is an exciting show, with vibrant energy and a great balance of high quality, international visitors'.
• Jason Smith, director at Innospection comments that 'StocExpo has been really valuable for Innospection this year. The show was well attended by clients from as far afield as North Africa and right across Europe and we've experienced a great amount of traffic to our stand. This has resulted in a number of promising discussions with people and has been a great way for us to build on existing relationships with local and international industries partners.'
• Armelle Chavenet, content marketing manager, Bertin Technologies said: 'This was a very valuable show, the attendance is really targeted and we had nice conversations and numerous business opportunities.'
• Stefanie Lammel, business development manager at M+F Technologies also comments 'StocExpo Europe was a great exhibition to target high quality leads from the oil industry. M+F Technologies has again been recognised as an indispensable global player in the oil industry'.
StocExpo Europe will be returning to Ahoy, Rotterdam next year from March 26-28, 2019. The next tank storage event, Tank Storage Asia, will take place in, Singapore on September 26 & 27, 2018. For more information please contact Nick Powell; email@example.com
Petrobras plans to sell a 60% operating stake in four oil refineries as part of plans to sell down its dominant position in Brazil's fuel market.
The sales, which include the newly built Refinaria do Nordeste, represent what is expected to be the first move in a restructuring of Brazil's refining sector. Currently, Petrobras operates 98% of Brazil's refining capacity.
The company's plans to retreat from the refining sector were announced in mid-216 and it has said it will refocus its investments on exploration and production.
In a filing with local stock regulators, the company says: 'The model outlines the creation of two subsidiaries, one combining assets in the northeast region and the other combining assets in the south region. Petrobras intends to sell 60% of its participation in each of these new companies.'
The northeast cluster includes the Refinaria Landulpho Alves (RLAM) in Bahia state, and the Refinaria do Nordeste (rnest). They both process 430,000 barrels per day.
The cluster includes 770km of oil pipelines linking the refineries with terminals and distribution points. Storage and transfer capacity will also be included, comprising 5.4 million barrels of capacity via the company's stake in terminals at Candeias, Itabuna, Jequie and Madre de Deus in Bahia state and the Suape terminal in Pernambuco.
The south cluster comprises Refinaria Presidente Getulio Vargas (Repar) and Refinaria Alberto Pasqualini (Refap). This cluster includes 736km of pipeline as well as rights to seven terminals with 6.1 million barrels of crude, 3.3 million barrels of oil products and 100,000 barrels of LPG capacity.
Work on the 230,000 barrels per day Duqm refinery, which is the largest cross-border GCC investment in the downstream sector, has started.
His Highness Sayyid/Haitham bin Tariq Al Said, minister of heritage and culture, took part in the groundbreaking ceremony to mark the start of construction work for the project. The project by Duqm Refinery and Petrochemical Industries Company is envisaged to be the cornerstone for other downstream projects in the future.
The refinery, which will manufacture clean, high-quality products in compliance with global standards for safety and operation, will bolster the energy industry of the Sultanate by strengthening the supply and production of diesel, jet fuel, naphtha, LPG, sulphur and pet coke as its primary products.
It will be situated on a 900-hectare site in the south east of Al Wusta in Oman. The project comprises three EPC packages. The first is the process unit of the refinery and the second includes utilities and offsite facilities. The third consists of the product storage and export terminal in Duqm, crude storage tanks in Ras Markaz and the 80km crude pipeline from Ras Markaz to the refinery complex.
The project has the potential to serve as the springboard for Duqm's planned transformation into one of the largest industrial and economic hubs in the region.
Iasm bin Saud Al-Zadjali, CEO of Oman Oil Company, says: 'Oman Oil Company performs the role of a catalyst to develop industrial hubs and regions in Oman. The Duqm refinery is one such project that symbolises the effective collaboration between Oman and Kuwait. We believe development of the refinery will support the business landscape in Duqm and will contribute to the creation of an attractive infrastructure for foreign investors, thereby developing the area further and adding jobs to the local economy.'
Nabil Bourisli, CEO and president, Kuwait Petroleum International, says: 'The modern landmark will leverage the energy sector of the Sultanate since it is a combination of integrity, maximisation of resources and development, to be laid in a very favourable region.'
Marathon Petroleum will acquire all of Andeavor's outstanding shares as part of a merger agreement to create a leading US refining, marketing and midstream company.
The transaction will mean that Marathon and Andeavor shareholders will own 66% and 34% of the combined company, respectively.
Once the transaction is complete in the second half of 2018 it will create a leading nationwide integrated energy company with an initial enterprise value greater than $90 billion.
It will substantially increase its geographic diversification and scale positioning the company for long-term growth and value creation.
Gary R. Heminger, Marathon chairman and CEO, says: 'This transaction combines two strong, complementary companies to create a leading US refining, marketing and midstream company, building a platform that is well-positioned for long-term growth and shareholder value creation.
'Each of our operating segments are strengthened through this transaction, as it geographically diversifies our refining portfolio into attractive markets, increases access to advantaged feedstocks, enhances our midstream footprint in the Permian basin, and creates a nationwide retail and marketing portfolio that will substantially improve efficiencies and enhance our ability to serve customers. '
The move will build on Marathon's strong footprint in the Marcellus, the combined company's expanded presence in the Permian and Bakken regions significantly increases its midstream growth opportunities.
Total oil product stocks in Fujairah stood at 19.451 million barrels as of Monday, 23 April, up 7.3% from a week earlier, reaching a seven-month high on sizable jumps in light and heavy product levels, according to the latest data from the Fujairah Energy Data Committee, or FEDCom.
Stocks of light distillates jumped 11.3% week on week to 8.224 million barrels, an eight-week high, the data showed. Premiums for Arab Gulf RON 95 petrol have been at $2.75/b since early April, with healthy regional demand in the run-up to Ramadan, which begins mid-May. Kuwait's KPC is seeking 25,000 mt of 91 RON petrol for delivery over May 5-6 into Mina al-Ahmadi via a tender closing Friday, S&P Global Platts Analytics said in a report.
Stocks of heavy distillates and residues also rose by 9.9% week on week to 9.478 million barrels. Pakistan State Oil (PSO) made its first purchase since January, buying 60,000 mt of LSFO and 420,000 mt of HSFO for May delivery via tender. With power demand set to rise over the summer, PSO could continue to be active in the spot market over the next few months until August/September. Higher power demand for utility grade 180 CST fuel oil could provide continued support to an already wide viscosity spread, the report said. Bunker demand in Fujairah has been improving over the past week, though buying sentiment is still tentative as market players watch the recent rally in crude prices, it said.
MIDDLE DISTILLATE STOCKS FALL ON GASOIL DEMAND
At the same time, stocks of middle distillates fell by 17.5% to 1.749 million barrels, as regional gasoil demand strengthens ahead of Ramadan. Low stocks could also spur traders into stockpiling ahead of the peak summer demand season, traders said.
Arbitrage economics are less favorable for gasoil, but the window to move cargoes from Asia to the West of Suez for 10 ppm sulfur gasoil was briefly open last week, traders said. 'The arb was open last week when EFS was around minus $12/mt; it is closed now,' a trader said Monday. Meanwhile, cross-regional flows helped support jet fuel sentiment. Viable arbitrage economics to divert barrels to the ARA region and Africa has pushed cash re-grade differentials for FOB Arab Gulf cargoes to a premium of $1.60/b to Mean of Platts Arab Gulf jet fuel/kerosene assessments recently, from $1.25/b at the end of March.
Shell will sell its downstream business in Argentina to Raízen, including a refinery, retail stations and a range of liquid fuels businesses.
The sale for $0.95 billion includes the Buenos Aires Refinery, 645 retail stations, LPG, marine fuels, aviation fuels, bitumen, chemicals and lubricants business, as well as supply and distribution activities in the country.
Raízen, a joint venture between Shell and Cosan, is a leading biofuels producer and fuels distributor in Brazil, where it manages more than 6,000 Shell service stations. It also is present in 68 airport supply bases and in 68 fuel distribution terminals and sells 25 billion litres of fuel for the transportation, industrial and retail segments.
The agreement is consistent with Shell's strategy to simplify its portfolio through a $30 billion divestment programme. The sale is expected to complete later this year.
HES Botlek Tank Termaink is the first storage facility in the Netherlands to be awarded the ISO 28000 certificate.
1SO 28000 is a supply chain security management system developed specifically for organisations offering logistic services. The awarding of the certificate makes the facility the most certified tank terminal in Rotterdam.
The company says in a statement that to protect its property and that of its clients, it operates a QESSH management system, which was already certified according to the strictest standards covering security, the environment, quality and health & safety.
It also operates an ISPS system to maintain the quality of its security.
Buckeye Partners & Phillips 66 have formed a joint venture to develop a new deep-water marine storage terminal in Ingleside, Texas.
The South Texas Gateway Terminal will be built on a 212-acre waterfront parcel at the mouth of Corpus Christi Bay. It will be positioned to serve as the primary outlet for crude oil and condensate volumes delivered off of the planned Gray Oak pipeline from the Permian Basin.
The terminal, to be constructed and operated by Buckeye, will offer 3.4 million barrels of crude oil storage capacity, connectivity to the Gray Oak pipeline and two deep-water vessel docks capable of berthing VLCC petroleum tankers as part of the initial scope of construction.
The facility can ultimately be expanded to include over 10 million barrels of storage capacity as well as multiple additional docks and other inbound connections.
The initial construction of the facility is supported by long-term minimum volume throughput commitments from customers including Phillips 66 and Andeavor.
It is due to start operations by the end of 2019.
Khalid Muslih, executive vice president of Buckeye and president of Buckeye's global marine terminals business unit, says: 'The South Texas Gateway Terminal will serve as a premier open-access deep-water marine terminal in the Port of Corpus Christi.
'The terminal will provide customers with logistics solutions that connect the region's rapidly growing crude oil production with advantaged access to global markets.
'This project expands our presence in the important Corpus Christi market, which we believe offers strong competitive advantages for waterborne shipments of crude oil and other petroleum products from the fast-growing Permian and Eagle Ford shale plats.
'Recently announced improvements to our existing flagship Buckeye Texas Partners terminal, which sits along the ship channel in the Port of Corpus Christi, have expanded its leading marine terminaling capabilities.
'We believe that these assets represent a competitive advantage for Buckeye and position us at the forefront of the fast-growing US crude oil export movement.'
TankTerminals.com will launch a new and improved database platform at the end of April.
The platform, which has a new website design and database platform, has new features to improve the capabilities of this tool.
It will contain a database on tank storage facilities globally, analytics tools such as a market share calculator, historic and future capacitary evolution and a competitive benchmarking tool.
Patrick Kulsen, managing director of PJK International and TankTerminals.com, says: 'The improved platform will provide more insights in the global tank storage industry and will increase quality and efficiency.'
For more information, visit www.tankterminals.com.
Kinder Morgan's terminals' segment reported an increase in volumes of 5% in its first quarter 2018 financials.
Volumes across its network were up 11 million barrels compared to its first quarter 2017 financials including contributions from storage capacity increases in key liquid hubs. These include those along the Houston Ship Channel and Edmonton, Alberta, where it placed in-service the first six tanks of its 4.8 million-barrel Base Line Terminal crude oil merchant storage joint venture.
CEO Steve Kean says: 'Earnings were down 2% compared to the first quarter of 2017. Earnings from expansion projects, including new build Jones Act tankers, were slightly more than offset by divestitures, decreased contributions from existing Jones Act tankers driven by lower charter rates, and some softness in tank utilisation at our Staten Island, New York, and Harvey, Louisiana, locations, among other things.'
Total oil product stocks in Fujairah stood at 18.134 million barrels as of Monday, April 16, down 2.6% or 486,000 barrels from a week earlier, following a sharp draw in middle distillates stocks, according to the latest data from the Fujairah Energy Data Committee, or FEDCom.
Stocks of middle distillates were down by more than a quarter to 2.119 million barrels, the data showed. The Middle East gasoil market is currently seen as balanced to oversupplied, but the impending turnaround season at regional refineries has kept a lid on surplus barrels, keeping supply relatively balanced, S&P Global Platts Analytics said in a report. At the same time, sentiment in the jet fuel market has been stronger, driven by supply tightness for prompt barrels as a result of ongoing refinery turnarounds. Still-workable arbitrage economics are pushing jet fuel barrels from the Middle East and India to Europe, as well as from South Korea to the US west coast, Platts Analytics said.
A source at a Middle Eastern refiner noted that, while the European market had been encouraging for spot premiums, 'demand from Africa is also supportive'. Premiums for Arab Gulf Jet Kero were assessed at a five-week high of $1.60/b Tuesday. Stocks of light distillates edged up by 1.1 % week on week to 7.387 million barrels. Demand in the region is expected to pick up with the onset of Ramadan in mid-May. Premiums for Arab Gulf RON 95 petrol were at a three-month high of $2.75/b Tuesday. However, a sluggish market in Singapore should ensure the Middle East will have ample gasoline supplies available, which should in turn keep spot premiums from overheating, the report said.
PAKISTAN BOOST FOR FUJAIRAH FUEL OIL
Stocks of heavy distillates and residues also rose by 2% to 8.628 million barrels. Pakistan State Oil has tendered for six 180 CST cargoes of 70,000 mt each with maximum 3.5% sulfur for May delivery to Port Qasim. This is the first tender seen from PSO since January. The company halted fuel oil imports earlier this year due to the startup of a new LNG import terminal, but summer power sector demand could see Pakistan's imports continue over the next few months. The return of PSO to the fuel oil market should be a positive sign for Fujairah, which has historically been the key supply source for PSO's imports. Bunker demand in Fujairah remains sluggish, as higher crude prices have pushed the cost of delivered bunkers to $400/mt recently.
Saudi Aramco and Total have signed a memorandum of understanding to build a giant petrochemical complex in Jubail, Saudi Arabia.
The complex will be integrated into the SATORP refinery, a joint venture between Saudi Aramco and Total, in a move designed to fully exploit operational synergies. This refinery, with a capacity of 440,000 barrels per day, is recognised as being one of the most efficient in the world.
The complex will comprise a world-size mixed-feed steam cracker with a capacity of 1.5 million tonnes per year of ethylene and related high-added-value petrochemical units.
The project will represent an investment of around $5 billion and the two companies are planning to start the front-end engineering and design in the third quarter of 2018.
The cracker will feed other petrochemical and specialty chemical plants representing an overall amount of $4 billion investment by third part investors.
Vopak is expanding its Botlek terminal in the Port of Rotterdam with 63,000 m3 of storage capacity for Styrene and other hazardous chemicals.
The expansion will add 15 stainless steel tanks for Styrene, which is used in the manufacturing of a wide range of consumer goods including packaging, construction and automotive.
The new infrastructure will be fully isolated to allow for product temperature control and is designed to prevent any emissions to the environment. It will connect seaborne trade flows via barges, block-trains and trucks to the European hinterland.
It is expected to be commissioned in the second quarter of 2020.
Vopak’s quarter one update reports that its occupancy rate is 87% compared to 91% in the first quarter of 2017 due to lower rented capacity at oil hub terminals caused by a less favourable market structure. Other product market segments show stable demand for storage services.
It reports an EBITDA of €190 million.
It says in the update that its 2018 financial performance is expected to be influenced by currency exchange movements of primarily the USD and SGD and the less favourable oil market structure, impacting occupancy rates and price levels in hub locations.
Vopak adds that, given the current 3.1 million m3 expansion programme with high commercial coverage, along with its ongoing cost efficiency programme, it has the potential to significantly improve the 2019 EBITDA, subject to market condition and currency exchange movements.