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Terminal News


Terminal News
September 21, 2018
Odfjell completes sale of Rotterdam terminal to Koole
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...

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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.



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Terminal News
September 20, 2018
Fujairah: Oil product stocks down 4.8%
As of Monday, September 17, total oil product stocks in Fujairah stood at 17.998 million barrels – down by 4.8% week on week. Stocks of light distillates fell by 11.7% week on week to 5.891 million barrels. Sentiment in the East of Suez petrol market remains firm on the back of continued demand from the Middle East, market sources said...

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As of Monday, September 17, total oil product stocks in Fujairah stood at 17.998 million barrels – down by 4.8% week on week.

Stocks of light distillates fell by 11.7% week on week to 5.891 million barrels. Sentiment in the East of Suez petrol market remains firm on the back of continued demand from the Middle East, market sources said. Premiums for Arab Gulf RON 95 petrol were up to a five-week high of $3.80/b yesterday.



Petrol flows from northeast Europe to the Middle East continue, with new fixtures for petrol-laden vessels from the ARA region and the UK to the Arab Gulf reported this week. Hurricane Florence had limited disruption on US petrol supply, with the impact expected to result in lower demand, which will keep European supply focused on the East.

Stocks of middle distillates edged up by 0.1% week on week to 4.181 million barrels - a new year to date high and the highest since July 24, 2017. Gasoil market sentiment has been little changed over the past week. The pull on Middle Eastern gasoil and jet fuel remains stronger to the east than the west. The East-West Exchange of Futures for Swaps was at minus $2.91/mt for October and minus $7.70/mt for November. The EFS generally needs to widen to minus $10-$15/mt before arbitrage economics to move gasoil would be feasible.

Stocks of heavy distillates and residues fell by 1.6% week on week to 7.926 million barrels. In Fujairah, bullish crude price sentiment was said to be driving interest amongst bunker buyers on Monday. Buyers with prompt requirements are looking to fulfill their demand in anticipation that flat prices may continue to rise. 'It's manic today,' said a Fujairah-based trader on the influx in inquiries. Upcoming US sanctions are expected to reduce Iranian crude exports sharply, and could also impact Iranian fuel oil supply to Fujairah. Delivered 380 CST bunker prices in Fujairah were $18/mt above Singapore yesterday; typically prices at the two ports are close to parity.



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Terminal News
September 19, 2018
BPGIC starts expansion of Fujairah storage terminal
Brooge Petroleum and Gas Investment Company (BPGIC) has started work on the second phase of its Fujairah terminal with an extra 601,600 m3 of storage capacity.Local media reports that at a ribbon cutting ceremony to mark the phase II expansion, OPEC secretary-general Mohammed Barkindo said: 'This ceremony marks a momentous occasion in the exciting storage of BGPIC, as well as the Emirate of Fujairah, which is playing an increasingly vital role in global energy trade...

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Brooge Petroleum and Gas Investment Company (BPGIC) has started work on the second phase of its Fujairah terminal with an extra 601,600 m3 of storage capacity.

Local media reports that at a ribbon cutting ceremony to mark the phase II expansion, OPEC secretary-general Mohammed Barkindo said: 'This ceremony marks a momentous occasion in the exciting storage of BGPIC, as well as the Emirate of Fujairah, which is playing an increasingly vital role in global energy trade.

'This world-class facility will help to bolster the oil and gas industry's presence in the emirate and is meeting a growing demand for storage capabilities in this dynamic and exciting market.'

The expansion will bring total storage capacity at the facility to 1.2 million m3. These tanks are mainly designed for storing crude oil as well as flexibly storing black products. This phase will also comprise building a new pump manifold with high flow rate pumps meeting FOTT VLCC requirements and additional jetty lines. It is expected to be complete by the fourth quarter of 2019.



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Terminal News
September 19, 2018
Vitol and Cheniere Energy have entered into an LNG sales & purchase agreement for 15 years.Under the terms of the agreement, Vitol will buy 0.7 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis beginning in 2018.The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee...

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Vitol and Cheniere Energy have entered into an LNG sales & purchase agreement for 15 years.

Under the terms of the agreement, Vitol will buy 0.7 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis beginning in 2018.

The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.

Jack Fusco, Cheniere's president and CEO, says: 'This agreement continues Cheniere's commercial momentum and supports our growth plans, while demonstrating the value LNG buyers place on Cheniere's unique ability to offer flexible solutions tailored to the needs of LNG customers worldwide.

Russel Hardy, group CEO at Vitol, adds: 'We are delighted to be working with Cheniere, a pioneer in US liquefaction. Vitol is committed to the long-term development of the LNG market. We believe that LNG has an important role to play in the future energy mix and that its evolution will require a more flexible and tradeable LNG market.'



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Terminal News
September 18, 2018
CVR Refining to sell Cushing storage terminal
CVR Refining plans to sell its Cushing, Oklahoma crude oil tank terminal and is considering bids from potential purchasers.The 1.5 million-barrel crude oil storage facility sits on a 130-acre parcel of land and includes six storage tanks, each with the capacity to hold 250,000 barrels of crude oil...

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CVR Refining plans to sell its Cushing, Oklahoma crude oil tank terminal and is considering bids from potential purchasers.

The 1.5 million-barrel crude oil storage facility sits on a 130-acre parcel of land and includes six storage tanks, each with the capacity to hold 250,000 barrels of crude oil.

The land the facility sits on has sufficient acreage for 12 additional tanks of a similar size. The assets for sale include a truck unloading facility with a lease automatic custody transfer unit and four 400-barrel tanks.

The facility provides connectivity to other Cushing terminals and pipelines.



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Terminal News
September 17, 2018
Targa Resources to sell US storage facilities
Targa Resources has executed agreements to sell its refined products and crude oil storage and terminalling facilities to an affiliate of ArcLight Capital Partners for $160 million.The sale of the facilities in Washington and Maryland is expected to close in the fourth quarter and Targa has said it intends to use the proceeds to fund a portion of its growth capital programme...

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Targa Resources has executed agreements to sell its refined products and crude oil storage and terminalling facilities to an affiliate of ArcLight Capital Partners for $160 million.

The sale of the facilities in Washington and Maryland is expected to close in the fourth quarter and Targa has said it intends to use the proceeds to fund a portion of its growth capital programme.

Evercore Group is serving as Targa's exclusive financial advisor on the transaction.



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Terminal News
September 14, 2018
Ineos announces €200 million European investment
Ineos Oxide has announced plans to invest €200 million into its European business, with €150 million for its Zwijndrecht site in Antwerp.Projects include growing ethylene oxide storage and distribution, debottleneck its plants and increase the production of ethylene oxide derivatives from the European market...

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Ineos Oxide has announced plans to invest €200 million into its European business, with €150 million for its Zwijndrecht site in Antwerp.

Projects include growing ethylene oxide storage and distribution, debottleneck its plants and increase the production of ethylene oxide derivatives from the European market.

A sixth alkoxylation unit in Antwerp is due to start up at the end of 2018, along with a 2,000-tonne expansion of ethylene oxide storage capacity at the site.

The company is also upgrading EO production at Lavéra, France to support the growing EO needs in Europe. This phase of investment will improve reliability, efficiency and availability of its business in Antwerp, Belgium as well as sites in Köln, Germany and Lavéra, France.

Additionally, an agreement has been reached with RWE to but the Inesco Combined Heat and Power Plant on the Ineos Zwijndrecht in Antwerp.

Graham Beesley, CEO of Ineos Oxide, says: 'We are marking Ineos' incredible global success at the place where it all began 20 years ago. To highlight our ongoing commitment to ethylene oxide, the first business to be bought by Ineos, we are announcing European investment of €200 million, with €150 million to be spent here at the Zwijndrecht site in Antwerp.'



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Terminal News
September 13, 2018
Oneok to expand West Texas LPG pipeline system
Oneok will invest $295 million to expand its West Texas LPG pipeline system.The system provides natural gas liquids takeaway capacity for Permian Basin producers. The expansion is supported by long-term dedicated NGL production from six third-party natural gas processing plants in the Permian Basin that are expected to produce up to 60,000 barrels per day of NGLs...

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Oneok will invest $295 million to expand its West Texas LPG pipeline system.

The system provides natural gas liquids takeaway capacity for Permian Basin producers. The expansion is supported by long-term dedicated NGL production from six third-party natural gas processing plants in the Permian Basin that are expected to produce up to 60,000 barrels per day of NGLs.

The expansion includes the construction of:

- Four new pump stations, two pump station upgrades and pipeline looping that will increase the West Texas LPG mainline capacity by 80,000 barrels per day.

- Additional infrastructure to connect West Texas LPG with Oneok's previously announced Arbuckle II Pipeline project

Terry Spencer, Oneok president and CEO, says: 'This second expansion of the West Texas LPG Pipeline system will serve continued growth in the Permian Basin and positions Oneok for additional future expansion opportunities in the Permian.'

The pipeline provides takeaway capacity to Permian Basin producers and consists of 2,600 miles of NGL pipeline in Texas and New Mexico.



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Terminal News
September 13, 2018
US becomes world’s largest crude oil producer
The US has surpassed Russia and Saudi Arabia to become the world's largest crude oil producer earlier in 2018.Based on preliminary estimates in the Energy Information Administration's Short-Term Energy Outlook, in February, US crude oil production exceeded that of Saudi Arabia for the first time in more than 20 years...

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The US has surpassed Russia and Saudi Arabia to become the world's largest crude oil producer earlier in 2018.

Based on preliminary estimates in the Energy Information Administration's Short-Term Energy Outlook, in February, US crude oil production exceeded that of Saudi Arabia for the first time in more than 20 years.

In June and August, the US surpassed Russia in crude oil production for the first time since February 1999.

EIA expects that US crude oil production will continue to exceed Russian and Saudi Arabian crude oil production for the remaining months of 2018 and through 2019.

US crude oil production, particularly from light sweet crude oil grades, has rapidly increased since 2011, with much of the growth concentrated in the Permian region in western Texas and eastern New Mexico.



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Terminal News
September 13, 2018
SEA-Invest & MOL Chemical Tankers to build storage terminal
MOL Chemical Tankers and SEA-Invest are investing up to €400 million to build a chemical storage terminal in the Port of Antwerp.The joint venture SEA-MOL, with 51% by SEA-Tank and 49% by MOL Chemical Tankers will secure 20.8 hectares of concession terrain located at the Delwaidedok in Antwerp from Antwerp Bulk Terminal...

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MOL Chemical Tankers and SEA-Invest are investing up to €400 million to build a chemical storage terminal in the Port of Antwerp.

The joint venture SEA-MOL, with 51% by SEA-Tank and 49% by MOL Chemical Tankers will secure 20.8 hectares of concession terrain located at the Delwaidedok in Antwerp from Antwerp Bulk Terminal. The JV will also entre into a concession agreement directly with the port for a further 24.4 hectares of land adjacent to this.

The dedicated liquid chemical storage terminal will serve as an efficient logistical hub for the storage, handling and added value activities for the petrochemical industry. This is in response to increasing requirements for chemical storage and added value activities in this sector in the region.

The terminal will be accessible for utilisation by all customers and shipping companies and access is guaranteed for sea-going vessels, barges, trucks and railcars. It will offer services such as blending, drum filling, filtration and ISO tank storage.

Through a phased investment SEA-MOL will build up to 500,000 m3 of storage for liquid chemicals, including organic, inorganic and base oils. The first phase is expected to be operational by mid-2021.

Jacques Vandermeiren, CEO of Antwerp Port Authority, says: 'This investment is further confirmation of our port's ability to attract major investors. It will also boost our position as one of the largest chemical clusters in the world. This is very good news for the port, and for our economy.'



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Terminal News
September 12, 2018
IMO 2020: Oil markets need certainty
Sean Evers, managing partner, Gulf Intelligence explains how many questions surrounding IMO 2020 remain unanswered, resulting in a lack of clarity on how the market should respond The real elephant in the room is how will the world handle the new IMO 2020 sulphur regulation? –this is going to drive the dynamics of the oil markets for the next 18 months, so being able to navigate that is going to be paramount to survival and profitability...

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Sean Evers, managing partner, Gulf Intelligence explains how many questions surrounding IMO 2020 remain unanswered, resulting in a lack of clarity on how the market should respond

The real elephant in the room is how will the world handle the new IMO 2020 sulphur regulation? –this is going to drive the dynamics of the oil markets for the next 18 months, so being able to navigate that is going to be paramount to survival and profitability. One of many questions - how will marine gasoil and heavy fuel oil fare? – will by itself keep many analysts awake at night.

Every party, whether it be shippers, refiners, operators etc., all think the other is taking care of the problem, but the reality is there has been no agreement around the table yet. There is a lack of clarity on how to respond. The market needs certainty. We missed the wave of investing in putting scrubbers on ships.

Now it comes down to refiners, port authorities and blenders to give clarity on enforcement and the requirements in different areas. Some players are already providing alternatives to destroying high sulphur fuel oil and to changing refinery slates as soon as everything is defined clearly. The industry can react when the conditions are there, but the message must be coherent on how to, for example, extract waivers, equal standards between ports and so on.

For example, answering this question is crucial: what will be done with the surplus heavy fuel oil as more developing economies go into gas?

Responsiveness and flexibility will be key to any operator. The ability to manipulate a barrel quickly – to blend it, upgrade it, convert it – is paramount during this backwardation period. Terminal and port operators must show a huge degree of flexibility to incentivise that barrel to come onshore and enable that incremental refining margin to be achieved. They must realise that their assets will be challenged more in this environment than when the market is in a natural contango.

But perhaps the more challenging question is whether terminal operators should build clean or dirty storage tanks. The answer depends on your point of view regarding where fuel oil is going to go when the International Maritime Organization's 2020 ruling that all sulphur limits in bunker fuel must be 0.5%, instead of 3.5% comes into play. Are fuel oil inventories going to balloon due to insufficient coking capacity and will fuel oil have a role in the bunker pool?

If the IMO regulations are effective in the bunker market, then we will need an alternative to high sulphur fuel oil – and that will be gasoil. In this scenario, marine gasoil will have to rise to help meet latent 2020 demand and fuel oil will also rise due to lack of natural demand from the market. There will be an inflection point and the storage requirement will have to change as a result. This will play out over the next 12 months.

One thing is clear though: tolerance for not abiding by the IMO's ruling will be very low by the likes of the United Nations', International Convention for the Prevention of Pollution from Ships (MARPOL) and other authorities. The turnaround for IMO has become acute with talk of drones and satellite enforcement. Fines for non-compliance may not be very high, but reputational damage will be.

IMO 2020 will be discussed in detail at the Gulf Intelligence 2018 Energy Markets Forum on September 17 & 18 in Fujairah. For more information, visit the website here



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Terminal News
September 12, 2018
IEnova signs contract with BP for Mexican storage terminal
BP has signed a long-term contract with Sempra Energy subsidiary IEnova for the remaining 50% of the initial capacity of the Baja Refinados liquid fuels marine terminal in Mexico.Under the agreement, BP will have storage capacity of 500,000 barrels of liquid fuels at the facility in Baja California to supply its growing network of service stations in northern Mexico...

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BP has signed a long-term contract with Sempra Energy subsidiary IEnova for the remaining 50% of the initial capacity of the Baja Refinados liquid fuels marine terminal in Mexico.

Under the agreement, BP will have storage capacity of 500,000 barrels of liquid fuels at the facility in Baja California to supply its growing network of service stations in northern Mexico.

In addition, BP will have the option to acquire up to 25% of the terminal's equity after commercial operations begin in the second half of 2020.

In April IEnova signed a long-term contract with Chevron Combustibles de Mexico for 50% of the facility's initial storage capacity to supply its service stations and other commercial and industrial customers.

Carlos Ruiz Sacristán, CEO and chairman of the Sempra North American Infrastructure group and chairman of IEnova, says: The Baja Refinados project is an important part of our growth strategy.

'This new terminal will increase Baja California's energy reliability and will foster competitive prices for petrol and other refined products on the West Coast of Mexico.'

The project will be located at the La Jovita Energy Hub in Ensenada and have an initial capacity of one million barrels of liquid fuels, with the potential for future expansion.



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Terminal News
September 12, 2018
Hurricane Florence to disrupt US East Coast energy markets
Image credit: NASA
Hurricane Florence is likely to disrupt national gas production, delay pipeline construction and reduce refined product supply to the Northeast.The category 4 hurricane, which is expected to make landfall late Thursday (September 13), will bring strong winds, heavy rains and flooding to the US East Coast...

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Image credit: NASA

Hurricane Florence is likely to disrupt national gas production, delay pipeline construction and reduce refined product supply to the Northeast.

The category 4 hurricane, which is expected to make landfall late Thursday (September 13), will bring strong winds, heavy rains and flooding to the US East Coast.

According to S&P Global Platts, the eye of the storm is likely to pass through the North Carolina coast early Friday morning with wind speeds of more than 110 MPH. Its four to five day track extends as far south as Georgia and to near the northern tip of Virginia.

Coastal inland flooding is expected following up to 15 inches of rainfall.

Platts says that in terms of oil trade flows, small volumes of petrol blendstocks, diesel and asphalt are imported into North and South Carolina, which could be affected by the storm.

However, no offshore or onshore oil production facilities or oil refineries are currently in the path of the storm. Operators of the Colonial Pipeline and Plantation Pipeline, which the Northeast is heavily dependent on for refined products supplies, are closely monitoring the storm.

Wilmington and Charleston ports are also preparing for the storm, with condition Zulu expected later today.

The storm could also disrupt operations at the two LNG export terminals on the East Coast and Dominion Energy, which owns the Cove Point in Maryland, terminal has activated its severe weather preparation and response plan.



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Terminal News
September 11, 2018
Enterprise Products Partners is increasing loading capacity for LPG products at its hydrocarbon terminal on the Houston Ship Channel.Construction work is underway to increase loading capacity for primarily propane and butane by 175,000 barrels per day, or five million barrels per month...

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Enterprise Products Partners is increasing loading capacity for LPG products at its hydrocarbon terminal on the Houston Ship Channel.

Construction work is underway to increase loading capacity for primarily propane and butane by 175,000 barrels per day, or five million barrels per month.

The expansion will bring total LPG export capacity at the terminal to 720,000 barrels per day, or approximately 21 million barrels per month.

Once complete, Enterprise Hydrocarbon Terminal will have the capability to load as many as six very large gas carrier vessels simultaneously, while maintaining the option to switch between propane and butane loadings.

Once operation, the expansion will allow the terminal to load a single VLGC in less than 24 hours, creating greater efficiencies and cost savings for customers. The incremental capacity is expected to be available in the second half of 2019.

A.J. 'Jim' Teague, CEO of Enterprise's general partner, says: 'Enterprise is already the largest exporter of propane in the world and this expansion project will increase our ability to export LPGs from the terminal facility by another 30% with nominal capital investment.

'Domestic production of hydrocarbons continues to exceed expectations and US demand. US LPG production currently exceeds US demand by over one million barrels per day and the domestic export terminals are approaching full utilisation.

'We estimate that US LPG production could increase by up to an additional 1.5 million barrels per day by 2025. Without access to international markets, excess LPG supplies would lead to a curtailment in the US crude oil and natural gas production growth.

'Marine terminal expansions like our will be essential to balancing the market and meeting growing global demand for US hydrocarbons.'



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Terminal News
September 11, 2018
ExxonMobil evaluating chemical complex in China
ExxonMobil has signed a cooperation framework agreement with the Guangdong Provincial People's Government to evaluate the construction of a chemical complex in China.The proposed complex in the Huizhou Dayawan Petrochemical Industrial Park would help meet expected demand growth for chemical products in China...

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ExxonMobil has signed a cooperation framework agreement with the Guangdong Provincial People's Government to evaluate the construction of a chemical complex in China.

The proposed complex in the Huizhou Dayawan Petrochemical Industrial Park would help meet expected demand growth for chemical products in China.

The multibillion-dollar project, which is subject to a final investment decision, would include a 1.2 million-tonnes-per-year ethylene flexible feed steam cracker, two performance polyethylene lines and two differentiated performance polypropylene lines.

The new complex would support progress toward China's national petrochemical development priorities. The framework agreement also confirms Guangdong Province's support in progressing the Huizhou LNG receiving terminal, in which ExxonMobil intends to participate, including supply of LNG.

Startup is planned for 2023.

ExxonMobil is also evaluating other chemicals manufacturing projects in Asia to help meet expected demand growth in the region. The company expects to grow chemicals manufacturing capacity in the Asia Pacific and North America by 40%, which will be achieved in part by adding 13 new facilities.



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Terminal News
September 11, 2018
A top down approach to process safety
Sharul Rashid, principle engineer, instrument and control at Petronas explains how he implemented a structured approach to process safety within the company The lack of a structured approach to process safety can have potentially catastrophic consequences...

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Sharul Rashid, principle engineer, instrument and control at Petronas explains how he implemented a structured approach to process safety within the company

The lack of a structured approach to process safety can have potentially catastrophic consequences. You only need to look at the Buncefield incident in 2005 and the Caribbean Petroleum Terminal facility explosion in 2009 to appreciate how devastating these consequences can be.

Mindful of these incidents and keen to ensure that these did not occur at Petronas now or in the future, Sharul Rashid, principle engineer, instrument and control, and other executives implemented a series of measures to ensure that the company had a structured and focused approach to functional safety.

Previously, the company was governed by its HSEMS Safety Technical standard, and no specific standard existed to govern process safety.

In an interview with Tank Storage Magazine Rashid explains: ‘From 1971 to 1996 there were 28 process safety incidences. From 1998 there were cases of history repeating itself, with the Buncefield incident in England in December 2005 and just four years later with the CAPECO explosion.

‘Both were due to common issues – a failure in the overfill protection system – which forms part of the important Safety Instrumented Function (SIF). In this respect, our company cannot afford to have a similar incident now or in the future.’

Rashid explains that executives at Petronas focused on a top down approach to ensure compliance with a focus on functional safety.

‘I ensure that Petronas complies with the IEC61511 Functional Safety Management standard, which is the primary reference for the company’s technical standard for functional safety management.

‘With the established SIF framework and Safety Integrity Level (SIL) Study roadmap for Petronas in place, the company has eliminated the possible dangerous failure on demand. This has been reflected in saving of $100,000 to more than $10 million, depending on the severity of the impact on people’s safety, the environment and production loss.’

Rashid will be speaking more about process safety compliance and a structured approach to managing the safeguard layer in compliance with the IEC61511 standard on the second day of the Tank Storage Asia conference at the Marina Bay Sands, Singapore on September 26 - 27. For more information, visit www.tankstorageasia.com.



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Terminal News
September 7, 2018
RWE & Germany LNG Terminal reach storage capacity agreement
RWE and German LNG Terminal have reached an agreement for a substantial amount of capacity at the Brunsbüttel terminal.This follows a successful open season for the LNG import and small-scale terminal, which will have a total capacity of five billion m3...

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RWE and German LNG Terminal have reached an agreement for a substantial amount of capacity at the Brunsbüttel terminal.

This follows a successful open season for the LNG import and small-scale terminal, which will have a total capacity of five billion m3. RWE, one of Europe's leading energy companies, has signed a contract that guarantees RWE access to substantial annual capacity.

Andree Stracke, CCO gas supply & origination of RWE Supply & Trading, says: 'We believe that together with Germany LNG Terminal we can fully develop a significant business around the terminal delivering LNG and gas to our customers in Germany and throughout Europe.

'LNG remains a key growth area for RWE: this agreement will enable us to continue growing our portfolio and provide us with additional flexibility to take advantage of new opportunities as they present themselves in the global LNG market.'

Ulco Vermeulen (member of executive board, N.V. Nederlandse Gasunie), Daan Vos (managing director, Oiltanking) and Kees van Seventer (president, Vopak LNG Holding) said in a joint statement: 'This is an important step in the commercial development of the terminal as a significant part of the terminal's capacity has now been committed. It clearly demonstrates that the market is committed to Germany's first LNG terminal and is convinced of its business model as a multi-service terminal, independent ownership and open access.'

Negotiations with other interested parties are ongoing. The final investment decision for the facility is expected by late 2019 and construction work will then start in 2020 with the terminal being fully operational by the end of 2022.



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Terminal News
September 6, 2018
Fujairah: Oil product stocks rebound 8.2%
Oil products stocks in Fujairah rose 8.2% week on week, rebounding from a five-month low as inventories of light, middle and heavy distillates all increased. Total oil stocks stood at 17.484 million barrels in the week ending Monday, September 2, up 1...

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Oil products stocks in Fujairah rose 8.2% week on week, rebounding from a five-month low as inventories of light, middle and heavy distillates all increased.

Total oil stocks stood at 17.484 million barrels in the week ending Monday, September 2, up 1.328 million barrels from a week earlier, according to the Fujairah Energy Data Committee.The biggest increase came from middle distillates stocks, which jumped by 15.8% to hit 4.09 million barrels, the highest level in more than a year.

Traders in the region described the gasoil market as balanced, and pegged 10 ppm sulfur gasoil at just under $1/b. The Middle East jet fuel spot market was better supported, however, due to increased regional buying interest, and continued flows to Northwest Europe, S&P Global Platts Analytics said in a report Wednesday. One source from a Middle East refiner also noted that the arbitrage window to the West of Suez had reopened last week due to a weaker prompt Exchange of Futures for Swaps (EFS) spread. The EFS was assessed at a seven-week low of minus $8.24/b Tuesday which indicated improved arbitrage economics, Platts Analytics said.

Stocks of light distillates rose 12.6% to 5.885 million barrels – a six-week high. The petrol market saw a boost in activity on the back of fresh tenders from Indonesia and Kuwait, where state-owned KPC sought 25,000 mt of RON 91 and 25,000 mt of RON 95 gasoline via tender.

'Currently the market is pretty tight, starting from the [Middle East] there are refinery issues so they are pulling a lot barrels from the East, and China exports are at a low,' a trader said, adding that Medium Range and Long Range tankers were being chartered to move cargoes to the Arab Gulf.

Meanwhile, stocks of heavy distillates and residues edged up by 1.5% to 7.509 million barrels. In Fujairah, tight cargo supply continued to keep bunker premiums at elevated levels. Delivered 380 CST bunker prices in Fujairah were assessed at $14.50/mt above Singapore Tuesday - the widest premium in four months - while delivered premiums over ex-wharf bunkers were at $20/mt.



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Terminal News
September 5, 2018
EagleClaw Midstream to acquire Caprock Midstream
EagleClaw Midstream will acquire Caprock Midstream Holdings for $950 million, which includes pipeline and storage assets.Caprock provides gathering, processing and disposal services for natural gas, crude oil and produced water to producers in the Delaware Basin...

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EagleClaw Midstream will acquire Caprock Midstream Holdings for $950 million, which includes pipeline and storage assets.

Caprock provides gathering, processing and disposal services for natural gas, crude oil and produced water to producers in the Delaware Basin. It operates two natural gas processing facilities and will have 540 MMcf/d of processing capacity for the completion of two additional facilities currently under construction.

It operates 300 miles of gas, crude, natural gas liquids and water gathering pipeline and 23 million barrels of crude storage, which is expected to grow to more than 60 million barrels within the next 12 months.

The acquisition of Caprock is complementary to EagleClaw and further solidifies the company's position as the midstream partner of choice for producers in the Delaware Basin.

Once the acquisition is closed, EagleClaw will operate close to 850 miles of natural gas, natural gas liquids, crude and water gathering pipelines, 1.3 billion cubic feet per day of processing capacity and crude and water storage facilities, with more than 425,000 acres under long-term dedication for midstream services.

The acquisition will expand EagleClaw into crude and water-related services, providing opportunities for the company to offer a broad suite of midstream services to both existing and new customers.

The existing Caprock operating company will be renamed EagleClaw Midstream II.

Jamie Welch, EagleClaw's president and CEO, says: 'Following our recent announcement of the Permian Highway Pipeline in partnership with Kinder Morgan, the acquisition of Caprock is another exciting chapter in the continued growth story of EagleClaw.

'This transaction expands our business in every aspect, from asset footprint, to customer diversity, to breadth of service offering, while remaining true to EagleClaw's core mission of providing customer-focused midstream services in the Permian Basin.'



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Terminal News
September 5, 2018
Island Energy Services to sell refinery assets to invest in midstream infrastructure
Island Energy Services is shifting its strategic focus to logistics and retail operations in Hawaii and is selling some refinery assets to Par Pacific Holdings.Par intends to utilise the acquired assets for continued refining operations to supply fuel to IES, which will allow IES to fulfil certain utility fuel supply contracts in Hawaii...

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Island Energy Services is shifting its strategic focus to logistics and retail operations in Hawaii and is selling some refinery assets to Par Pacific Holdings.

Par intends to utilise the acquired assets for continued refining operations to supply fuel to IES, which will allow IES to fulfil certain utility fuel supply contracts in Hawaii.

IES, a Hawaii based fuels market and logistics business, has agreed to enter into a long-term agreement with Par to provide fuel storage and throughput services.

IES plans to continue to source petroleum products from its current network of local and global suppliers and does not expect any disruption to Hawaii's supply of petroleum products as a result of this transaction.

It also expects to reinvest net sale proceeds in Hawaii to further expand its logistics infrastructure, which includes a network of tank terminals, pipelines and other distribution assets.

The company says these planned investments are intended to ensure IES remains well-positioned as a long-term valued suppler of fuel products in Hawaii. It also plans to expand its retain operations.

IES CEO Jon Mauer says: 'This shift in operations better positions IES as an integrated logistics provider, anchored by our large-sale Kapolei import terminal. We look forward to maintaining our role as a trusted local fuel supplier for the state as we respond to changing market conditions, industry regulations and Hawaii's long-term energy mandate.'



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