Latest storage news
A new €40 million aviation fuel storage terminal has been opened at Dublin Airport.
The facility has six times the capacity of the original facility, with three new aviation fuel tanks capable of storing 15 million litres of fuel in total.
The project also includes connecting the fuel farm to a fuel hydrant system, which enables the fuel to be delivered directly into the aircraft via a hydrant dispenser that connects to a pit in the ground.
The new facility means that aircrafts can now be refuelled in less than half the time it took under the old system, and the number of fuel vehicles on the apron area has reduced by 50%.
The CLH Group was awarded the contract to design, finance, build, operate and transfer.
Vincent Harrison, Dublin Airport managing director, says: 'The extra fuel storage capacity that this development brings is hugely welcome. The new fuel farm has brought significant efficiencies and benefits for our airline customers.'
Pakistan's largest and most advanced fuel storage facility has been officially opened at the New Islamabad International Airport.
The facility, which was inaugurated by Sardar Mehtab Ahmad Khan, advisor to the prime minister on aviation division, is jointly developed by Pakistan State Oil and Attock Petroleum.
He said during the opening that the fuel facility was a big step forward in effectively meeting the growing fuelling needs of the aviation industry and was all set to serve the largest airport in Pakistan.
Th3e facility is equipped with robust storage capacity, maximum product pumping ability to refuel multiple aircrafts in minimal time and the latest detection, firefighting and alarm systems.
MD and CEO PSO Sheikh Imranul Haque said: 'We feel extremely delighted and proud in launching the country's largest and most advanced fuel farm facility at the largest and most advanced airport in Pakistan.'
Increased utilisation and ongoing operational enhancements will contribute towards steady performance improvements at Stolthaven Terminals.
The terminal division of Stolt Nielsen reports first quarter revenue of $62.5 million compared to $61.4 million in the fourth quarter of 2017. Utilisation edged up and total product handled increased by12.9% in the first quarter, mainly attributed to normalisation of operations at Stolthaven Houston following Hurricane Harvey.
It reported first-quarter operating profit of $25.9 million, compared with $5.4 million in the fourth quarter. The increase mainly reflected $8.2 million of additional equity income resulting from a reduction of net deferred tax liabilities at its joint venture terminal in Antwerp in the first quarter, combined with the $8.4 million one-time impairment of assets at Stolthaven New Zealand in the previous quarter.
Growth in operating income also reflected higher equity income from Stolthaven's joint venture terminals in Ulsan, South Korea and Lingang, China.
Enterprise Products Partners will expand its marine terminal on the Houston Ship Channel after purchasing a 65-acre waterfront site.
The Enterprise Hydrocarbon Terminal currently comprises two existing docks, dredging infrastructure that will be utilised for maintenance and dock expansion at the site, and land for significantly expanding its marine terminalling capabilities.
Future expansion plans include construction of at least two deepwater docks capable of accommodating Suezmax vessels.
A.J 'Jim' Teague, CEO of Enterprise's general partner, says: 'As one of the last waterfront properties for sale adjacent to our existing shop channel assets, this strategic acquisition complements our world-class EHT marine terminal and strengthens our position as an industry leader in providing waterborne access.
'The growth opportunities available at the 65-acre site enhance our ability to accommodate growing US hydrocarbon production, which is increasingly destined for global markets.'
The newly acquired assets will be part of Enterprise's premier Gulf Coast network of marine terminals that includes 18 ship docks, and eight barge docks.
SemGroup has completed the sale of its UK petroleum storage business to Valero Logistics UK.
SemGroup intends to use the processes from the sale of its SemLogistics business unit towards its capital raise plan and to pre-fund capital growth projects.
'The sale of our UK petroleum storage facility is an important achievement in our strategy to simplify our portfolio and focus on the North American growth areas we have identified along the Gulf Coast, Mid-Continent and Canada,' says SemGroup president and CEO Carlin Conner.
Sempra Energy plans to develop, build and operate a liquid fuels marine terminal at the La Jobita Energy Hub in Ensenada, Mexico
The Baja Refinados terminal will be a receipt, storage and send-out facility operated by Infraestructura Energética Nova, a subsidiary of Sempra.
It will have an initial storage capacity of one million barrels of petrol and diesel that will increase the fuel supply capacity and reliability in Baja California. It will cost around $130 million and operations are expected to start in the second half of 2020.
IEnova also announced it has signed a long-term contact with Chevron Combustibles de Mexico for 50% of the facility's storage and send-out capacity to supply Chevron service stations and other commercial and industrial consumers in the region.
Chevron will have the option to acquire 20% equity ownership of the facility after commercial operations begin.
IEnova will be responsible for the development of the liquid fuels terminal project, including obtaining permits, engineering, procurement, construction and financing, as well as maintenance and operations.
Avant Energy will invest an additional $300 million in the Mexican SUPERA system, which comprises a network of storage terminals.
Luis Farias, Avant Energy CEO made the announcement as the first stone of SUPERA (Altamira-Bajio Petroleum Supply System) at the marine terminal in Altamira, Tamaulipas. Avant Energy initially estimated its investment at $200 million but has increased it to $500 million.
Farias explained that $260 million will be allocated to increase the operating capacity of the terminals that make up the network, while the rest will concentrate on maintaining a strategic inventory of hydrocarbons.
‘We estimate that only in Altamira the investment will reach $200 million, while in Queretaro, we will allocate another $60 million.
‘In addition to the investment in fixed assets, working capital is required to buy and inventory the petroleum products, as well as to give credit to customers, this initial capital is around an additional $250 million.’
Mexico’s energy secretary Pedro Joaquin Coldwell adds that SUPERA will help increase energy security and highlights how efficient the system will be. ‘Under the previous model, prior to the energy reform, private investment was limited to modernise and expand infrastructure, which put national energy security at risk, our current inventory level is only three days of sales, well below the world standard that is 30 days,’ he says.
Crude oil production in the Federal Gulf of Mexico (GOM) is expected to continue increasing in 2018 and 2019.
According to the Energy Information Administration (EIA), US crude oil production in GOM increased slightly in 2017, reaching 1.65 million barrels per day. This is the highest annual level on record despite being briefly hindered by platform outages and pipeline issues.
In the EIA's short-term energy outlook, it expects the GOM to account for 16% of total US crude oil production in each year.
Based on expected production levels at new and existing field, annual crude oil production in the GOM will increase to an average of 1.7 million barrels per day in 2018 and 1.8 million barrels per day in 2019.
In 2016, producers brought seven new projects and expansions online and ramped up production in 2017, collectively contributing to an average of 126,000 barrels per day of production in 2017.
Producers expect four new projects to come online in 2018 and six more in 2019.
Several oil companies are looking at the possibility of building an onshore oil storage terminal.
Reuters reports that Norway's oil minister Terje Soeviknes telling a news conference that Statoil, Eni, Lundin and OMV are investigating either an onshore facility for ship-to-ship transfers or a storage terminal.
Statoil scrapped plans for an onshore terminal to reduce the Arctic Johan Sverdrup oilfield's costs.
Soeviknes is quoted saying: 'I think it's important that operators investigate all possibilities and find a profitable solution both for the companies and society.'
Saudi Aramco and a consortium of Indian oil companies have signed a MoU to develop and build an integrated mega refinery and petrochemicals complex in Maharashtra, India.
The strategic partnership which includes Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, brings together crude supply, resources, technologies and expertise from multiple oil companies.
A pre-feasibility study for the refinery has been completed and the parties are finalising the project's overall configuration. They will also discuss the formation of a joint venture.
The refinery will be capable of processing 1.2 million barrels of crude oil per day and will produce a range of refined petroleum products. The refinery will also provide feedstock for the integrated petrochemical complex.
The project – Ratnagiri Refinery and Petrochemicals - will also include a cracker, downstream petrochemical facilities, logistics, crude oil and product storage terminals as well as associated infrastructure.
It is estimated to cost $44 billion.
Saudi Aramco president and CEO Amin Nasser says: 'Investing in India is a key part of our company's global downstream strategy, and another milestone in our growing relationship with India. Participating in this mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other area's of collaboration, such as refining, marketing and petrochemicals for India's future energy demands.'
The first shipment of crude oil by Suezmax tanker has taken place at Buckeye's Texas hub terminal.
The facility along the ship channel in the Port of Corpus Christi, Texas recently underwent modifications to allow the terminal to berth Suezmax class vessels, enabling an incremental one million barrels of crude oil to be exported each month for the terminal.
The Suezmax Mt Astra was chartered by Motiva Enterprises.
Khalid Muslih, executive vice president of Buckeye and president of global marine terminals, says: 'Buckeye Texas Hub has become a premier location providing marine terminal services, allowing growing US energy exports access to global markets.
'We are very excited to have reached this milestone and look forward to additional opportunities to partner with Trafigura to further expand the terminal's capabilities and serve the region's rapidly growing energy production.'
Corey Prologo, head of oil trading and director for Trafigura, which owns 20% of the facility, adds: 'North American supplies have launched the US onto the world stage as a new rude provider. Upgrading the terminal's deep-water docks at Corpus Christi will help us to meet the growing demand for this product from European refineries and Far East refineries and petrochemical plants.'
A newly formed acquisition company has acquired terminal, processing, and storage assets in Maryland, US.
Origin Americas is a North American acquisition vehicle controlled by physical oil trading firm Element Group. The acquisition comprises a nearly 50-acre liquid bulk storage terminal with rail, truck, vessel loading and unloading infrastructure, as well as one of the largest used moto oil and lubricant collection businesses in the Mid-Atlantic region.
To fund the acquisition and to provide ready capital to finance future growth, Origin Americas has closed a $100 million strategic financing partnership with Orion Energy Partners along with equity funding from a group of experienced energy investment and commodities trading veterans.
Nicholas Myerson, CEO of Origin Americas, says: 'We are excited to launch the Origin Americas platform with the acquisition of such a strategic and high-quality business in Baltimore. We look forward to building upon the Baltimore assets acquisition and continuing to execute on our growth strategy with the support of Orion Energy Partners.'
Dialog Group has entered into an MoU with Johor state officials to invest RM2.5 billion into the third phase of its Pengerang Deepwater Terminal.
As part of the memorandum of understanding with the Johor state government and Johor State Secretary (JSS), the company will hold an indirect 80% stake in Pengerang CTF, which will be responsible for the works. The remaining 20% will be held by JSS-unit Permodalan Darul Ta'zim.
The third phase of the project will be built on a 300-acre parcel of land yet to be reclaimed next to phase 2. It will comprise common tankage facilities and deepwater marine facilities, development of more petroleum and petrochemical storage terminals for medium to long-term customers and the development of industrial land for further downstream oil and gas related activities. It is expected to take 22 months to complete.
Dialog Group executive chairman Tan Sri Dr Ngau Boon Keat is quoted by local media saying: 'I hope with the launch of the third phase of the project, we will be able to attract another refinery and petrochemicals complex, which will enable Pengerang to turn into a huge petroleum downstream manufacturing centre.
'This will in turn attract Organisation of Economic Cooperation and Development countries to use its storage facilities as a strategic oil reserve hub given its strategic location in the Asia-Pacific.'
Sunoco has agreed to acquire Superior Plus' wholesale fuel distribution business and three storage terminals.
The assets, which Sunoco will purchase for approximately $40 million, comprise 100 dealers, several hundred commercial contracts and three terminals, which are connected to major pipelines serving the upstate New York market.
The wholesale fuels business sells 200 million gallons of fuel annually through multiple channels. The three terminals have 17 tanks with 429,000 barrels of storage capacity.
Sunoco says the acquisition is consistent with its strategy of utilising its scale to grow the core fuel distribution business and adding fee-based refined product terminals into the overall portfolio. The acquisition is expected to close later in April.
Buckeye Partners will invest $80 million to expand its Chicago Complex with more storage, blending capabilities and expansion of an existing truck rack.
The project, which is Buckeye's key logistics hub in the Midwest, is backed by a long-term agreement with BP Products North America. It will further expand storage, component blending, throughput capacity and service capabilities to support BP's growing needs.
The expansion includes an extra 600,000 barrels of additional product blending tankage as well as the build-out of an existing truck rack.
Currently, the complex serves nearly 70 different customers with 6.8 million barrels of storage capacity.
Robert Malecky, executive vice president and president of domestic pipeline and terminals, says: 'This is a meaningful win for Buckeye and demonstrates the value in the position and flexibility of our assets to enable a broad range of both operational and trading capabilities.
'This project will further enhance the liquidity of the Chicago Complex and continues to solidify our position at the premier storage and trading facility in the Chicago area.
'We believe the Midwestern refining industry is materially cost-advantaged to certain of its competitors in other parts of the country and poised for continued growth and investment. Our teams expect this expansion to be the first phase of additional growth because of these dynamics and will continue to work with other customers with similar interest.'
Construction work has started on the Tomaro Industrial Park, which comprises a storage terminal, oil rig fabrication plant, refinery and shipyard.
The park, which was made a free trade zone by the federal government as part of its efforts to industrialise the nations economy, will cost around $450 million.
Captain Emmanuel Ihenacho, chairman and CEO of Integrated Oil and Gas/Genesis Shipping Worldwide, told journalists in a site tour that the storage facility consists of 30 tank bases with a capacity of 500 million litres. With that capacity, NNPC will be able to draw fuel for 15 days when there are interruptions in fuel supply in the country.
Work on the construction of large crude oil storage tanks in the port of Jask is underway.
Local media reports that in the first phase of the project, the facility will have the capacity to store 10 million barrels. This could increase to up to 30 million barrels at a later phase, Hamid Sharif-Razi, managing director of National Iranian Oil Engineering and Construction Company said.
Additionally, the project also comprises a 1,000 kilometer 42-inch pipeline from the city of Goureh, in Bushehr Province to the port of Jask, in the southern Hormozgan Province.
Petróleos Mexicanos has signed a contract with Olstor Services to increase its oil product storage capacity.
The contract is the first of its kind to be formalise with a private enterprise by Pemex. The deal gives Pemex Transformación Industrial greater flexibility and reliability for the supply of fuel and other oil products to cover the demand of its clients in the Bajío region of Mexico.
The company says that this contract represents how the tools provided by the new legal environment and regulatory framework from the country's energy reforms are being actively used.
'This allows the company to develop a new oil product storage infrastructure with third-party involvement to further improve and strengthen the country's energy supply,' it says.
Total oil product stocks in Fujairah were 16.595 million barrels as of Monday, April 2, down 5.5% from a week earlier, as all three product categories fell, according to latest data from the Fujairah Energy Data Committee, or FEDCom.
Stocks of middle distillates fell 21.6% to 1.739 million barrels. The gasoil market was stable Monday, with a supply cap on turnarounds in India and the Middle East, according to a report by S&P Global Platts Analytics. Premiums are seeing some support from European demand, with the arbitrage looking more workable, market sources said. The volume of ultra low sulfur diesel shipping from East of Suez markets to the Mediterranean and Northwest Europe is currently expected at between 1.2 million mt and 1.4 million mt, respectively, in April, data from S&P Global Platts trade flow software cFlow and market sources showed.
Demand in diesel markets in Northwest Europe and the Mediterranean has started to pick up following the winter lull. On jet fuel, traders said demand for Asian and Middle Eastern barrels was seen dropping off somewhat as the flow of cargoes from the US to Europe intensifies. Meanwhile, stocks of light distillates fell 4.7% on the week to 7.807 million barrels.
The Middle Eastern market is seeing mixed sentiment, with some sources saying ample supply from Europe and India would continue to depress the market, while others were more optimistic, the report said. Petrol demand has had a slow start to the year in the first quarter, but sentiment is picking up given stable demand from the Middle East which is likely to improve further with stock building ahead of Ramadan, it said. Global demand is expected to see a seasonal pickup ahead of the summer driving season. Premiums for Arab Gulf Gasoline RON 95 rose to a three-week high of $2.60/b Tuesday.
Stocks of heavy distillates and residues were largely stable, falling just 1% on the week to 7.049 million barrels. Bunker market sentiment in Fujairah was reported as improving with some traders noting better inquiries for April. Kuwait Petroleum Corp. sold via tender 80,000 mt of 380 CST HSFO, with maximum 4.0% sulfur, for April 10-11 loading to Vitol at a low single digit premium to Mean of Platts Arab Gulf 380 CST HSFO assessments, on an FOB basis, traders said.
Keyera Corporation and Encana Corporation will jointly develop a liquids hub and a natural gas processing and liquids stabilisation plant.
Both companies have entered into a 20-year infrastructure development and midstream service agreement to support Keyera's condensate focused Pipestone Montney development near Grande Prairie, Alberta.
Keyera will own the new hub and plant and will provide processing services to Encana, which will be responsible for the design and construction of the project.
The Pipestone Liquids Hub is currently under construction and will include a total of 14,000 barrels per day of condensate processing capacity. It will also include a total of 200 million cubic feet per day of sour gas processing capacity with acid gas injection capabilities, 24,000 barrels per day of condensate processing capacity and associated water disposal facilities. Based on the project development schedule, operations of the Pipestone Plant are anticipated to begin in 2021.
David Smith, Keyera's president and CEO, says: 'This project aligns with Keyera's strategy of building a stronger presence in the liquids-rich Montney development of northwestern Alberta, where strong geology and attractive economic returns are driving producer activity.'