Latest storage news
As of Monday, December 3 total oil product stocks in Fujairah stood at 18.322 million barrels – up by 6.7% week on week.
Stocks of light distillates jumped by 14.2% week on week to 10.003 million barrels. Gasoline markets remain bearish globally, with benchmark cracks in Asia and Europe in the negative. The Asian gasoline market remained in the doldrums Monday due to the persisting supply surplus and bearish near-term outlook. 'Things are still not looking too good; it does not look like any [refiner] intends to cut rates for the time being,' one refinery source says. 'We are looking for news on refinery turnarounds but indications so far have been that the impact might only be small,' another source said.
Stocks of middle distillates rose by 3.2% week on week to 2.318 million barrels - up slightly from the previous week's six-month low. Gasoil shipments from the Middle East into the Mediterranean have increased recently, with four vessels arriving into the region in the last seven days carrying diesel from the East of Suez. 'There are many cargoes around, nothing distressed, but some large cargoes are coming from the [Arab] Gulf, and the month of December is generally quieter in terms of demand as some people rush to get supply in November,' one market participant says. However, there are some indications arbitrage economics are tightening; the East-West gasoil exchange-for-swaps (EFS) rebounded from a 13-month last week to minus $15.62/mt yesterday.
Stocks of heavy residues dipped by 2.6% week on week to 6.001 million barrels - the lowest total since February 26. Bunker prices rebounded strongly in line with higher crude prices due to expectations OPEC and Russia will announce a production cut at its meeting in Vienna. Fujairah's bunker demand was slowly emerging, while deliveries were slightly tighter for prompt dates, market sources said. Bunker premiums in Fujairah have cooled from the highs seen last week, but remain strong amid lessened supply from Iran due to fears over US sanctions.
Petronas, through its subsidiary, Petronas LNG Ltd (PLL) and Vitol Asia Pte (Vitol) have announced the signing of binding Heads of Agreement (HOA) for long-term liquefied natural gas (LNG) sale and purchase (SPA) agreement.
Under the terms of the agreement signed on 1 October 2018, the LNG supply to Vitol commencing in 2024 will be approximately up to 0.8 million tonnes per annum for a period of up to 15 years on both Delivered Ex-Ship (DES) and Free on Board (FOB) basis.
The primary supply to Vitol will come from LNG Canada as well as from other PLL’s global LNG supply portfolio. LNG Canada is a major LNG project located in Kitimat, British Columbia, Canada which Petronas is one of the joint venture participants with equity holding of 25%. Canada is Petronas’ second largest resource holder after Malaysia, with vast unconventional oil and gas resources in the North Montney.
Petronas vice president of LNG marketing and trading, Ahmad Adly Alias says: ‘With a strong global supply portfolio, Petonas is able to provide flexible solutions within a changing and evolving LNG market. Petronas is pleased to sign this long-term LNG supply deal with Vitol and hope that it will continue to enhance the long history of business collaboration with the Vitol Group.’
Vitol Head of LNG, Pablo Galante Escobar adds: ‘We are delighted to be partnering with Petronas again, a global market leader and producer of natural gas and LNG. Petronas supplied our first LNG cargo in 2005 and we have now extended our LNG relationship until at least 2038. Vitol is committed to the long-term development of the LNG market and its evolution to become a more flexible and tradeable commodity. This supply deal with Petronas will further strengthen our ability to offer reliable and flexible LNG solutions to customers worldwide.’
With over 7 million tonnes of LNG delivered through 2017 and an extensive global trading and logistics network developed over a decade of delivering to customers, Vitol is one of the largest and most experienced independent traders of LNG. Petronas is also recognised as a reliable LNG supplier and solutions provider with over 35 years of experience. Operating from its main supply base (Petronas LNG Complex) in Bintulu, Sarawak. Petronas LNG Complex is one of the world’s largest LNG complexes on a single site. The nine-train facility has a combined annual production capacity of about 30 million tonnes. In addition, Petronas has also diversified its LNG supply portfolio in recent years with the inclusion of Australia’s Gladstone LNG and the world’s first floating LNG facility located offshore Sarawak.
Calgary-based petroleum transportation, storage and natural gas liquids processing business, Inter Pipeline has announced a $1.46 billion capital expenditure programme for 2019. 92% of the total capital expenditures will be for organic growth initiatives invested in sustaining capital projects.
Approximately $40 million will be devoted to improvements to the bulk liquid storage assets, with about $20 million being spent in 2019 to meet increased demand for storage at certain facilities located in the UK, Sweden and Germany, as well as the recently acquired terminal in the Port of Amsterdam.
‘Our 2019 capital programme will largely be focused on construction activities related to the $3.5 billion Heartland Petrochemical Complex,’ stated Christian Bayle, Inter Pipeline's President and CEO. ‘This transformational investment is proceeding according to plan with an expected completion date of late 2021. Rounding out our capital programme will be investments in various smaller scale infrastructure projects to enhance service offerings within our pipeline, NGL processing and storage business units.’
Conventional Oil Pipelines
In 2019, Inter Pipeline is planning to invest approximately $100 million in its conventional oil gathering business. This capital will develop several projects to serve emerging light oil plays in Alberta's East Duvernay and Viking regions.
The investments include $60 million to advance the previously announced Stettler Crude Oil Terminal Expansion on the Central Alberta pipeline system. This $82 million project includes the construction of two 130,000 barrel crude oil storage tanks and additional truck unloading capacity which are expected to enter service in phases between mid-2019 and mid-2020. The remaining $40 million will be spent developing several smaller projects, including new midstream marketing facilities on the Bow River pipeline system.
Oil Sands Transportation
Approximately $90 million is targeted for investment in Inter Pipeline's oil sands transportation business over the next year. Approximately $50 million will support the completion of a connection from the Cold Lake pipeline system to Canadian Natural's Kirby North oil sands project. Construction of the dual 23 km pipeline and pump station is scheduled to be completed in early 2019, with an in-service date of mid-2019.
The remaining $40 million of capital will be invested in various organic growth projects on the Cold Lake, Polaris and Corridor pipeline systems.
Within this business segment, approximately $1.1 billion is expected to be committed to advance the development of the Heartland Petrochemical Complex. In 2019, detailed design work and procurement of major equipment will be completed. Mechanical construction of the propane dehydrogenation plant will continue including the installation of major pressure vessels and other critical equipment modules. Site construction of the integrated polypropylene plant will also advance including the installation of the polypropylene reactor and other core mechanical components. The project continues to be on schedule and budget.
Additionally, approximately $20 million will be directed toward various projects to increase processing capacity, as well as enhance product storage and delivery systems at the Redwater Olefinic Fractionator. The remaining $10 million of capital will be invested in smaller organic growth projects at Inter Pipeline's NGL extraction plants.
Inter Pipeline expects to invest approximately $120 million in sustaining capital expenditures in 2019. Approximately $30 million will be allocated to the replacement of processing equipment and the improvement of site infrastructure within its NGL processing business segment. A further $30 million will be directed towards corporate infrastructure including enhancements to information technology systems.
Inter Pipeline continues to maintain a strong balance sheet with significant liquidity available on its committed revolving credit facility. Funding for Inter Pipeline's 2019 capital programme is expected to be provided through a combination of undistributed cash flow from operations, capacity available under its existing $1.5 billion revolving credit facility, the periodic issuance of new term or hybrid debt securities and proceeds from existing dividend re-investment programmes.
Par Pacific Holdings will acquire US Oil & Refining including refining and logistics assets for $358 million.
The acquisition includes a 42,000 barrel per day refinery, a marine terminal, a unit train-capable rail loading terminal and 2.9 million barrels of refined product and crude oil storage. The refinery and associated logistics system are strategically located in Tacoma, Washington and currently serve the Pacific Northwest market.
US Oil's refinery is located on 139 acres of fee-owned land near Tacoma. The refinery has the flexibility to optimise its crude slate based on market conditions. Currently discounted Bakken and Cold Lake crude represent over 95% of its current crude slate.
US Oil's logistics assets include a 14-mile jet fuel pipeline, a marine terminal with 15 acres of waterfront property, a unit train facility with 107 unloading spots and a truck rack with six truck lanes and 10 loading arms as well as 2.9 million barrels of storage capacity.
These assets provide connectivity to Bakken, Canadian and Alaskan crude and Pacific, West Coast, Pacific Northwest and Rockies product markets.
William Pate, president and CEO of Par Pacific Holdings, says: 'This transformative acquisition connects our existing assets in Hawaii, Pacific Northwest and the Rockies to create an integrated downstream network with significantly enhanced scale and diversification.
'We have been executing an ambitious strategic growth plan focused on attractive downstream markets for over three years and the acquisition of US Oil further demonstrates the progress we have made. We believe that this transaction provides a strong platform for earning and cash flow growth.'
Gasunie's hydrogen pipeline between Dow and Yara has been brought into operation.
The pipeline from Terneuzen and Sluiskil represents the first time that an existing main gas transported pipeline has been modified for hydrogen transport.
Hydrogen for industrial use will be exchanged via the pipeline, which is no longer being used to transport gas.
The 12km pipeline was the subject of agreements signed in March between Dow, Yara, ICL-IP and Gasunie Waterstof Services.
In the summer of 2017 connections were made at Dow and Yara and the gas transport pipeline was modified at a few points making it suitable for transporting hydrogen. The pipeline was then filled with hydrogen. It is now being used commercially for transporting more than four kilotons of hydrogen per year. Transporting hydrogen to ICL-IP at a later stage is also part of the plan.
Gasunie CEO Han Fennema says: 'This hydrogen pipeline highlights an important point in our history. This is the first time that an existing gas transported pipeline has been modified for transporting a different gas to natural gas.
'Gas infrastructure plays a connecting and facilitating role in the energy transition. We will be transporting different energy carriers, such as hydrogen and green gas, increasingly through our pipelines in the future.'
He adds that the network may have a capacity of 10 gigawatts or more by 2030.
Tallgrass Energy has acquired more than 600 acres of land along the Mississippi River for $30 million that will be the site for its planned Plaquemines Liquids Terminal.
Once complete the terminal is expected to offer up to 20 million barrels of storage for both crude oil and refined products and export facilities capable of loading Suezmax and VLCC vessels for international delivery.
The land was acquired in accordance with an agreement between the terminal and the Plaquemines Port and Harbour Terminal District. Both parties will work collaboratively to permit and construct the terminal.
As part of the transaction, the port received a 50-acre tract that will serve as a conservation easement, with the rest being used for the Mid-Barataria Sediment Diversion project.
In addition, Tallgrass has signed a binding agreement with an unaffiliated third-party that has the potential to be an anchor shipper and equity partner in the company's proposed Seahorse Pipeline, that would run from Cushing, Oklahoma to both the St. James, Louisiana refining complex and the Plaquemines terminal.
Vopak will acquire in total 44% of Elengy Terminal Pakistan from International Finance Corporation and Engro Corporation.
This includes the acquisition of a 29% share announced earlier in July.
Elengy Terminal Pakistan's wholly owned subsidiary, Engro Elengy Terminal owns a LNG facility located in Port Qasim in Pakistan, adjacent to the Engro Vopak chemical terminal on the mainland side of the channel into Port Qasim.
The facility, which has been in operation since 2015, is the first LNG import facility in Pakistan and comprises an LNG jetty including a 7.5km high pressure gas pipeline. It is connected to the grid of Sui Southern Gas Company.
The liquified gas is supplied, under long-term contracts, via LNG carriers from various exporting countries to the FSRU, which is moored to the EETPL jetty and connected to its pipeline. The regasification takes place on the FSRU and the gas is transferred to the mainland where, under high pressure, it enters the grid of the customer.
Closing of the acquisition is expected to take place in the first quarter of 2019. Closing of the first transaction announced in July is still expected for the fourth quarter of 2018.
The Port of Corpus Christ has been given an additional $59 million in funding for its ship channel improvement project by the US Army Corps of Engineers.
This funding from organisation's fiscal year 2019 work plan, brings the total federal appropriations for the project to $95 million. The estimated cost for the project is $360 million, of which the federal government is responsible for $230 million, while the port is responsible for the remaining $130 million.
Sean Strawbridge, CEO for the Port of Corpus Christi, says: 'The inclusion of additional work plan funds is yet another significant milestone toward the US becoming a net exporter of its energy production.
'Widening and deepening the Corpus Christi Ship Channel is a mathematical certainty. Energy markets are taking notice as the majority of incremental US energy production is coming to Corpus Christi and ultimately to the global markets. We expect over two to three million barrels per day of new crude production coming out way, and our energy producing, and marketing customers know we are building out all the necessary infrastructure to handle these new volumes, safely and responsibly.'
Total plans to acquire Grupo Zema's fuel distribution company Zema Petróleo and its retailer arm Zema Diesel as well as its importation company Zema Importacao.
Zema Petróleo manages several oil products and ethanol storage facilities as well as 280 dealer-operated service stations located in Minas Gerais, Goiás and Mato Grosso. It is also carrying a supply activity to third party retail stations in the same regions.
With this acquisition, Total is entering the largest South American market for the retail of fuels and into the worldwide second largest low-carbon biofuels market. It intends to expand its activities in the area with the objective to double the number of branded stations within five years, particularly throughout the southeast and central-west regions in Brazil.
Momar Nguer, president marketing and services and member of the executive committee, says: 'This acquisition is in line with our strategy to expand in large growing markets and in biofuels markets under out climate roadmap.
Odfell Terminals has been converted to a 100% Odfjell SE controlled holding company as part of a company restructure that strengthens the company's role in its terminal division.
This follows Lindsay Goldberg's departure as a joint venture partner for Odfjell Terminals. The restructure strengthens the company's foothold in tank storage with this holding company and by increasing its ownership in Antwerp's Noord Natie Odfjell Terminals.
As part of Lindsay Goldberg's announced exit plans, it has converted its shares in Odfjell Terminals into 49% direct ownership in two separate joint ventures owning the terminals in the US and Asia.
With Antwerp being an important port for chemicals in the EU, Odfjell takes another strategic step.
The ownership share increases from 12.75% to 25% in Noord Natie, and this stake is wholly owned by the holding company. It will be the management company of Odfjell's global terminal assets and will be the operating partner of the joint ventures in the US and Asia.
Frank Erkelens, CEO of Odfjell Terminals, says: 'After our recent divestments we can now fully focus o growing our footprint of terminals as well as on the synergies with Odfjell Tankers. We see great potential for the terminals in our portfolio.'
Puma Energy has reported a decline in year-on-year EBITDA and gross profit as a result of challenging market conditions.
The company recorded its gross profit as $341 million, impacted by lower unit margins across most markets, given the devaluation of foreign currencies against the US dollar and adverse market conditions.
Its EBITDA was $133 million, above the second quarter figures but it was still negatively impacted by lower unit margins, while opex have been contained.
CFO Denis Chazarain says: 'The challenging conditions outlined in our half year results have continued to impact performance in the third quarter, resulting in lower unit margins and a decline in year-on-year EBITDA and gross profit. Management has maintained strict discipline over the period in relation to costs, capital expenditure and working capital, helping to generate the strong cash flows required to meet Puma Energy's net debt to EBITDA and financial obligations.'
He adds: 'We will continue to operate with the same level of discipline for the foreseeable future to address challenges faced in our operating markets, as a result of currency devaluations against a strengthening US dollar and oil price volatility. Despite these headwinds, third quarter sales volumes increased 8% compared to last year.'
HES Botlek Tank Terminal is preparing to expand storage at the facility with an addition 20,000 m3 of capacity.
The six tanks for biofuels are backed by multi-year customer contracts.
Additionally, the facility has completed the second phase of its expansion project, which doubles its liquid bulk capacity to 490,000 m3.
Global Petro Storage and Equinor have signed an agreement to develop South East Asia’s first independent LPG storage terminal in Port Klang, Malaysia.
The facility will be the first independent, refrigerated LPG terminal in Malaysia, and will provide storage services exclusively to Equinor.
Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as selling volumes to markets like Bangladesh, the Philippines, India, Indonesia and Vietnam.
It will have capacity to turn over 1.5 million tonnes of LPG each year and will be able to handle VLGC and pressurised LPG vessels on its jetty.
Construction work will begin in January 2019 and the 135,000 m3 facility is expected to be complete by early 2021.
GPS is the majority shareholder for the project and will develop, own and operate the LPG facility.
Eric Arnold, MD and CEO of GPS, says: ‘The new LPG terminal is a highly strategic, unique asset that will give Equinor a new platform in South East Asia, and enhance its reach into the region, where the LPG market is growing.
‘GPS’s focus is on developing the infrastructure that suppliers of gas and petroleum like Equinor need to access the global marketplace. This is the latest example of how our technical and operational expertise combine with our financial muscle to deliver industry-changing projects.
Molly Morris, vice president for products and liquids in Equinor, adds: ‘Malaysia is an attractive market and we believe that we will be a competitive supplier to the wholesale Malaysian LPG market as well as to other markets in the region.
‘The terminal and storage are also strategically located for blending and selling to other growing markets in the region.’
This agreement represents the first time the companies have entered into a formal partnership.
This follows GPS’s recent announcement on starting construction works on a new terminal in the Port of Hamriyah, in the UAE.
Tristar Group has acquired a 300,000-barrel crude oil terminal located within the Louisiana Offshore Oil Port.
The Canal Crude Oil Terminal has 18 tanks on a 50-acre site with a loading capability of 3,000 to 4,000 barrels per hour.
LOOP, a deep-water port in the Gulf of Mexico off the coast of Louisiana, is the only mainland port capable of offloading a wide range of vessels, including ULCCs and VLCCs.
Eugene Mayne, Tristar Group CEO, says: 'This is a strategic investment that will not only complement Tristar's fuel farm business but also position Tristar for an entry into the lucrative shale oil industry in the US.
'This is the first small step in our endeavour to enter and be a player in the US shale industry and I am confident that we will develop and grow this facility to be a major export terminal for US crude.'
US oil production rose from 5.5 million barrels to 10 million barrels per day between 2010 and 2017. By mid-2018 US crude oil exports reached 3 million barrels a day.
WorleyParsons has entered into a joint venture with BP Oil New Zealand for a 50% shareholding in New Zealand Oil Services.
Under the JV, New Zealand Oil Services has been awarded a terminal services agreement for the operation of BP's seven bulk fuel storage, handling and distribution facilities in New Zealand. WorleyParsons also becomes NZOS's preferred contractor to deliver engineering, project delivery and asset management services.
Andrew Wood, CEO of WorleyParsons, says: 'This contact demonstrates the synergies following our acquisition of AFW UK Oil & Gas in 2017. It builds upon our established relationship with BP and utilises WorleyParsons' MMO expertise and capability.'
Dialog Group is considering further investments in petrochemical plants within the Pengerang Integrated Complex.
The group is exploring opportunities to further develop its investment in the Pengerang Deepwater Terminal its director of corporate services Chew Eng Kar told reporters following the company's AGM.
He said: 'We have enough land, so there are opportunities where we can move on to the petrochemical industry. We are discussing with partners and are exploring these opportunities but have yet to make any firm decisions.'
In its first quarter 2019 financials, the company says that the expansion of phase 1 is currently on going and that phase 2A, the dedicated petroleum and petrochemicals terminal for RAPID remains on track for full completion in early 2019.
Additional, progress has been made for phase 3 with the signing of a MoU with the State Government of Johor Darul Ta'zim and the State Secretary, Johor to invest and develop common tankage facilities and deepwater marine facilities to support and promote the petroleum and petrochemicals storage and handling tank terminal business.
Land reclamation activities for phase 3, which will be developed on 300 acres of land, have started, and Dialog are in discussion with potential customers for this phase.
Green Plains has completed the sale of three ethanol plants to Valero Renewable Fuels Company for $319 million.
The sale includes ethanol plants in Bluffton, Indiana, Lakota, Iowa and Riga in Michigan, which represented 20% of the company's reported ethanol production capacity.
In additional, Green Plains Partners has completed the sale of the storage assets and assignment of the rail transportation assets associated with the three ethanol plants to Green Plains.
The consideration for the transaction consisted of 8.7 million Green plains units and a portion of the general partner interest equating to 0.2 million hypothetical limited partner units to maintain the general partner's 2% interest.
Green Plains Partners will receive as additional consideration approximately $2.6 million in cash related to the present value gain on railcars transferred.
Limetree Bay Refinery and BP's supply and trading arm have reached a definitive agreement for tolling, supply & offtake of the restarted refinery in St. Croix in the US Virgin Islands.
This announcement follows from the press release on November 4 which stated that Limetree Bay had reached an agreement in principle with a major international oil company.
Limetree Bay anticipates completion of the restart by late 2019.
Governor Mapp says: 'This agreement marks a significant milestone for the refinery restart effort.
'With more than $1.5 billion of total capital investment in the project, we can look forward to a period of significant growth in employment and the economy.'
American Midstream will sell its refined products terminalling business to Sunoco for $125 million.
The refined products terminalling business consists of terminals located in Caddo Mills, Texas and North Little Rock, Arkansas with a total of 1.3 million barrels of storage capacity spread across 21 tanks. The facilities have 77,500 barrels per day of total throughput capacity.
The acquisition builds on Sunoco's strategy of adding fee-based refined product terminals into the overall portfolio.
The acquisition is expected to close in the fourth quarter of 2018.
American Midstream says that this divestiture represents continued progress towards its capital allocation strategy designed to reduce leverage and strengthen the partnership. In addition, the divestiture of the terminals simplifies its business profile while creating capital flexibility.
Tallgrass Energy plans to expand capacity on its Pony Express pipeline up to an additional 300,000 barrels per day.
The company has announced a binding open season soliciting shipper commitments for crude oil transportation services from the Guernsey, Wyoming origin point to refinery delivery points along the Pony Express system and to Cushing, Oklahoma.
The open season is expected to conclude on January 18, 2019.
Based on commitments received, the capacity expansion of 300,000 barrels per day beyond expected year-end capacity of approximately 400,000 barrels per day.
The expansion is expected to be staged over the next two years, with full-in service in the third quarter of 2020.
The Louisiana Offshore Oil Port has confirmed its deepwater loading capabilities can meet market demand after successfully loading multiple VLCCs for export during 2018.
In February 2018, LOOP achieved a milestone by loading its first VLCC at the deepwater port, offshore of Port Fourchon, Louisiana. Houston-based Shell Trading Company US was the shipper of record for that historic cargo. This capability by the port has been described as having game changing potential by Marathon Petroleum Company, which is the majority owner of LOOP.
LOOP is the only US port capable of fully loading a VLCC. This now enables inbound vessels to deliver foreign crude oil and then leave LOOP with US crude oil, rather than returning empty.
Since the Crimson/MPLX announcement of the Swordfish pipeline reversal, public information officer Wade Tornyos says that customer requests concerning its deepwater port export capabilities have skyrocketed.
Marathon says in a statement that with domestic production surpassing 10 million barrels per day, the capability 'truly optimises America's energy supply chain'.
Marathon Petroleum logistics and storage executive vice president John Swearingen says: 'LOOP started talking about vessel loading several years in the effort to diversify their overall business offerings. They were able to offer a solution to the marketplace quickly and at a fraction of the cost of other options.
Terry Coleman, LOOP president, says: 'Today, customers are seeking more options to load petroleum produced in the US onto the largest ocean-going ships for delivery to international destinations.
'The service has been embraced by customers and connects our Clovelly Hub in Galliano, Louisiana, with our deep-water port and to the global refining market.'
Oiltanking has announced plans to sell its indirect investment in Exir Chemical Terminal PJSCo in Iran.
The company says this decision has been made as a result of the difficult market situation in Iran and as part of its continuous portfolio optimisation.
The company has sold its indirect investment to the Iranian joint venture partner.
The terminal, located in the Petrochemical Special Economic Zone in the port of Bandar Imam Khomeini in Iran, was commissioned in January 2010 and is connected by pipelines to the jetties of the Petzone at the Persian Gulf.
Policy choices made by governments across the globe will determine the shape of the energy system of the future as the energy sector experiences a series of major transformations.
The International Energy Agency's World Energy Outlook 2018 sets out global energy trends amid a time of significant geopolitical change and influence.
While the geography of energy consumption continues its historic shift to Asia, the document finds mixed signals on the pace and direction of change.
Oil markets are now entering a period of renewed uncertainty and volatility, including a possible supply gap in the early 2020s and demand for natural gas is on the rise.
Oil consumption will grow in the next few decades as a result of rising petrochemicals, trucking and aviation demand. Meeting this growth in the near term means that approvals of conventional oil projects need to double from their current low levels.
According to the WEO without such a pick-up in investment, US shale production would have to add more than 10 million barrels a day from today until 20205, which is the equivalent of adding another Russia to global supply in seven years. This would be an historically unprecedented feat.
In all cases, governments will have a critical influence in the direction of the future energy system. According to the documents new policies scenario, under current and planned policies, energy demand is set to grow by more than 25% to 2040, which will require more than $2 trillion a year of investment in new energy supply.
Dr Fatih Birol, IEA's executive director, says: 'Our analysis shows that over 70% of global energy investments will be government-driven and as such the message is clear – the world's energy destiny lies with government decisions.
'Crafting the right policies and proper incentives will be critical to meeting our common goals of securing energy supplies, reducing carbon emissions, improving air quality in urban centres and expanding basic access to energy in Africa and elsewhere.'
Read the full report in the December/January edition of Tank Storage Magazine.
ADNOC has signed a MoU with the Indian Strategic Petroleum Reserves to examine the possibility of storing ADNOC crude oil at its underground oil storage facility in Karnataka, India.
The MoU stipulates that ADNOC could store crude in two compartments at Pardur, which has a total storage capacity of 17 million barrels.
The memorandum follows the arrival of the final shipment of the initial delivery of ADNOC crude to be stored in another ISPRL underground facility at Mangalore, which will store 5.86 million barrels of ADNOC crude oil.
ADNOC is the only foreign oil and gas company so far to invest by way of crude oil in Indian's strategic petroleum reserves programme.
H.E. Dr Al Jaber, ADNOC Group CEO, says: 'India is an important oil market and this agreement underscores the strategic energy partnership between the UAE and India that leverages the UAE and ADNOC's expertise and oil resources.
'It is our firm hope that we will be able to convert this framework agreement into a new mutually beneficial partnership that will create opportunities for ADNOC to increase deliveries of high-quality crude oil to India's expanding energy market and helping India meet its growing energy demand and safeguard its energy security.'
H.E. Dharmendra Pradhan, minister of petroleum and natural gas skill development and entrepreneurship, Government of India, adds: 'This MoU will allow ISPRL to explore, with ADNOC, opportunities related to the possible storage of ADNOC crude at Padur, which would help to significantly strengthen the country's strategic petroleum reserves. This agreement reflects the strong bonds of cooperation between India and the UAE and provide a foundation for strengthening and expanding our strategic energy relationship.'
India is over 82% dependent on imports to meet its crude oil needs, around 8% of which is supplied by the UAE.