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Terminal News


Terminal News
March 21, 2019
Nuevo Midstream buys Republic Midstream
Nuevo Midstream Dos has entered into an agreement with an affiliate of ArcLight Capital Partners to buy Republic Midstream.Republic owns and operates a crude oil gathering, storage and intermediate transportation system in the Eagle Ford Shale.Nuevo Midstream plans to expand the system with 300,00 barrels of crude oil storage and a six-bay truck station...

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Nuevo Midstream Dos has entered into an agreement with an affiliate of ArcLight Capital Partners to buy Republic Midstream.

Republic owns and operates a crude oil gathering, storage and intermediate transportation system in the Eagle Ford Shale.

Nuevo Midstream plans to expand the system with 300,00 barrels of crude oil storage and a six-bay truck station. The system, which consists of 1,000 miles of gathering pipeline that feeds a central delivery point, also includes a 26-mile intermediate pipeline that moves volumes from the central delivery point to the Kinder Morgan crude and condensate pipeline and the Eagle Ford crude oil pipeline system, which is owned and operated by Enterprise.

The Kinder Morgan and Enterprise pipelines deliver crude and condensate to multiple terminals with access to refineries, petrochemical plants and export terminals on the Texas Gulf Coast.

The transaction is expected to close in the second quarter of 2019.



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Terminal News
March 20, 2019
A large fire at Intercontinental Terminals Company’s chemical storage facility in Deer Park has been extinguished. The blaze, which lasted for almost four days, was successfully put out overnight Tuesday according to a statement from the company and firefighters...

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A large fire at Intercontinental Terminals Company’s chemical storage facility in Deer Park has been extinguished.

The blaze, which lasted for almost four days, was successfully put out overnight Tuesday according to a statement from the company and firefighters.

According to local news report, fire crews continue to spray foam and water on the tanks to cool them and prevent reignition.

In a statement, the company says: ‘Although all fires have been extinguished at this time, steam and smoke may still be visible from the area and the possibility for reigniting still exists.’

The fire at the Deer Park facility started on Sunday, March 17 and spread to several chemical storage tanks, including naphtha and xylene.

The fire started in tanks containing naphtha and xylene and spread to a small patch of containers that included toluene. 

No injuries have been reported and local health and emergency officials said early air quality tests suggest the fire has not posed a serious health risk.



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Terminal News
March 19, 2019
Vitol acquires further stake in bitumen JV
Vitol has acquired a further 50% of VALT, the bitumen joint venture with Sargeant Marine.Once complete, VALT with be 100% owned by Vitol and will be integrated into Vitol's core trading business.The acquisition will make Vitol a leader in the trading, storage and marine transportation of asphalt products globally, with a dedicated fleet of 11 specialised vessels...

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Vitol has acquired a further 50% of VALT, the bitumen joint venture with Sargeant Marine.

Once complete, VALT with be 100% owned by Vitol and will be integrated into Vitol's core trading business.

The acquisition will make Vitol a leader in the trading, storage and marine transportation of asphalt products globally, with a dedicated fleet of 11 specialised vessels. Volumes are around 1.4 million metric tonnes of asphalt per annum, managed from hubs in Asia, Europe, and the US.

The transaction, subject to conditions, is expected to close in the second quarter of 2019.



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Terminal News
March 19, 2019
Global Petro Storage to develop railcar connection at Port of Amsterdam
Global Petro Storage has entered into an agreement with the Port of Amsterdam to develop a railcar connection on land adjacent to GPS' existing storage facility.GPS intends to develop a rail connection to the public network and to points across Europe that will increase its efficiency and offerings to clients...

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Global Petro Storage has entered into an agreement with the Port of Amsterdam to develop a railcar connection on land adjacent to GPS' existing storage facility.

GPS intends to develop a rail connection to the public network and to points across Europe that will increase its efficiency and offerings to clients.

The sustainable transport development complements Port of Amsterdam's strategy, which underscores the importance of good rail connections to and from the Amsterdam port region.

Peter Vucins, director of EMEA at GPS, says the expansion will enable GPS to capture future opportunities. The first step has been taken by asking for permits for the railcar connection.

He adds: 'This agreement enables GPS to continue the successful expansion programme that began when we acquired the terminal in late 2016, including adding significant gasoline capacity to our current terminal, which will come on stream in the second half of this year.'



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Terminal News
March 19, 2019
Deer Park storage fire continues into third day
Picture credit: Jaimie Meldrum/Handout via Reuters
A large fire at a petrochemical storage facility in Deer Park continues to rage into the third day as it spread to multiple tanks.The fire at the Intercontinental Terminals Company's Deer Park facility started on Sunday, March 17 and spread to several chemical storage tanks, including naphtha and xylene...

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Picture credit: Jaimie Meldrum/Handout via Reuters

A large fire at a petrochemical storage facility in Deer Park continues to rage into the third day as it spread to multiple tanks.

The fire at the Intercontinental Terminals Company's Deer Park facility started on Sunday, March 17 and spread to several chemical storage tanks, including naphtha and xylene.

The fire is expected to burn for another day or two as firefighters continue to battle the flames. Latest reports suggest that the fire has been contained within six storage tanks, although there were reports that it had spread to seven tanks, however it later emerged that one remained unscathed.

The fire started in tanks containing naphtha and xylene and spread to a small patch of containers that included Toluene. Company officials say that the risk of additional tanks catching fire remains minimal.

Alice Richardson, ITC spokeswoman, is reported saying: 'We have made some headway that (only) three of our tanks are still on fire. Three others are intermittent fires. They flare up and they go down.'

No injuries have been reported and local health and emergency officials said early air quality tests suggest the fire has not posed a serious health risk.



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Terminal News
March 19, 2019
New Divisional Director to drive StocExpo Europe forward
StocExpo Europe's new divisional director has high ambitions to take it to the next level as the event prepares to celebrate its 15th anniversary serving the bulk liquid storage sector.Mark Rimmer has worked in energy exhibitions for more than 12 years and plans to use his experience to take the event to the next level...

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StocExpo Europe's new divisional director has high ambitions to take it to the next level as the event prepares to celebrate its 15th anniversary serving the bulk liquid storage sector.

Mark Rimmer has worked in energy exhibitions for more than 12 years and plans to use his experience to take the event to the next level. 'This year StocExpo celebrates its 15th anniversary and in that time the show has grown and evolved into the flagship event it is today,' he explains. 'I can't wait to see the show for myself on 26th March.

'What I've learned over the years is that with so many events for people to choose from, you have to build your event to sit at the heart of a community, it should truly serve its market and deliver return on investment, return on time for exhibitors and visitors alike.'

'What's great about StocExpo Europe is that it serves a specific niche. By only focusing on the bulk liquid storage sector, exhibitors know that every single visitor that walks through the door is relevant to them. Equally, visitors know that our exhibitors are specialised and skilled in delivering what they need.'

'Having said that, it's still vital to add new features to the show each year to ensure these visitors return year after year.'

This year, for the first time, terminals are also exhibiting. 'It's great to see Inter Terminals and Stolthaven Terminals on the show floor and I am looking forward to seeing the initiatives they'll be showcasing on their stands.'

Also new for 2019 is the German Mechanical Engineering Industry Association (VDMA), who will be hosting a series of workshops at the Innovation Theatre on the third day.

And there's yet another first. Renowned motivational speaker Steven van Belleghem will be delivering the keynote presentation during the CPD-certified conference, presenting his views on how to survive in a world of artificial intelligence, robots, and automation.

The international conference, organised by Tank Storage Magazine, covers a wide range of topics impacting the storage sector, from the Energy Transition to The Terminal of Tomorrow. Other key speakers include; Matthew Hudson, Terminal Manager from Shell; Stephen Harrison, Principal at Nexant Energy & Chemicals Advisory, plus Mike van Croonenburg, Director at Alpha Terminals.

'We've got record numbers of delegates attending the conference this year,' Rimmer says; with companies such as Saudi Aramco, LBC Terminals, Mina Petroleum, MOL, Navigator Terminals, SK Energy, Tepsa, Unipetrol. With the conference situated on the show floor, it will make it so much easier for these delegates to visit the exhibition.'

And with plenty happening on the show floor, from free-to-attend sessions, networking parties on many stands as well as the late-night networking on the second day, there will be plenty of business opportunities for visitors and delegates alike.

Free-to-attend sessions will be taking place each day on the show floor. On day one, the Engineering Equipment and Materials Users Association (EEMUA) will be hosting a series of seminars on topics such as cyber security and robotic inspection.

On day two, iTanks will be taking a closer look at the role hydrogen may play in the future and what impact this could have on tank storage, following its networking breakfast.

'I've heard a lot of good things about the iTanks networking breakfast on day two. This will be a unique opportunity to hear pitches from entrepreneurs about their innovative products.'

Revealing other highlights on his list, Rimmer adds: 'I'm also looking forward to the Global Tank Storage Awards ceremony following day one,' he says. 'An evening of good food, drink, entertainment and good company with the industry.'

'And the late-night networking on day two will be a great opportunity to get to know the key figures in the industry in a more relaxed atmosphere.'

'The show's Official Publication Tank Storage Magazine is also celebrating its 15-year anniversary at the show – yet another reason to celebrate!'

For more information visit www.stocexpo.com.



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Terminal News
March 18, 2019
An affiliate of ArcLight Energy Partners has announced plans to acquire American Midstream Partners as part of a definitive agreement and plan of merger.Under the agreement ArcLight will acquire all outstanding common units of American Midstream not already held by the company at a price of $5...

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An affiliate of ArcLight Energy Partners has announced plans to acquire American Midstream Partners as part of a definitive agreement and plan of merger.

Under the agreement ArcLight will acquire all outstanding common units of American Midstream not already held by the company at a price of $5.25 per common unit.

The merger is expected to close in the second quarter of 2019 subject to meeting certain customary conditions.



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Terminal News
March 18, 2019
Macquarie & West Street complete HES International acquisition
Macquarie Infrastructure and Real Assets and West Street Infrastructure Partners, managed by Goldman Sachs, have completed the acquisition of HES International.The companies have acquired HES International from Riverstone Holdings and the Carlyle Group...

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Macquarie Infrastructure and Real Assets and West Street Infrastructure Partners, managed by Goldman Sachs, have completed the acquisition of HES International.

The companies have acquired HES International from Riverstone Holdings and the Carlyle Group. The new shareholders, who each control 50% of HES, look forward to working in partnership with the executive board and the employees to further develop and grow the company.

MIRA and WSIP are supportive of management's strategy to grow HES through investment in new projects and to strengthen the existing operations of the terminals.

HES is one of the largest diversified port terminals businesses in Europe and is focused on the storage and handling of liquid bulk products and dry bulk products. With strategic locations in some of Europe's most accessible ports, HES benefits from highly attractive catchment areas and established long-term relationships with the region's blue-chip customers.

The company has established Northwest Europe's newest liquid bulk terminal, HES Botlek Tank Terminal, and helped the largest independent tank terminal in Germany, HES Wilhelmshaven Tank Terminal, transition from a refinery to fully operational tank terminal.

In a statement, the company says that the HES management team is successfully implementing a €700 million transformation and growth strategy, which includes the construction of the 1.3 million m3 HES Hartel Tank Terminal in the Port of Rotterdam. This strategy enables HES to grow into a significant tank terminal operator in Northwest Europe, while further strengthening its position as one of the largest diversified dry bulk terminal operators in Europe.



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Terminal News
March 14, 2019
Sinopec has started operations at four berths at its Yangpu oil products terminal.The facility in Hainan has four specialised oil product berths, including one 100,000 tonnes-class berth, two 50,000 tonnes-class berths, and one 10,000 tonnes-class berths...

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Sinopec has started operations at four berths at its Yangpu oil products terminal.

The facility in Hainan has four specialised oil product berths, including one 100,000 tonnes-class berth, two 50,000 tonnes-class berths, and one 10,000 tonnes-class berths.

The annual handling capacity of the berths will be 27.41 million tonnes according to Sinopec.

The terminal provides product oil supply to Honey as well as for its expansion in southeast Asia.



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Terminal News
March 14, 2019
Fujairah: Oil product stocks down 0.4%
As of Monday, March 11 total oil product stocks in Fujairah stood at 21.641 million barrels. Inventory levels edged down by 0.4% or 94,000 barrels week on week. Stocks of light distillates fell by 5.4% week on week. Total volumes rose by 591,000 barrels to stand at 10...

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As of Monday, March 11 total oil product stocks in Fujairah stood at 21.641 million barrels. Inventory levels edged down by 0.4% or 94,000 barrels week on week.

Stocks of light distillates fell by 5.4% week on week. Total volumes rose by 591,000 barrels to stand at 10.399 million barrels. Light distillates stocks have been rangebound and have continued to hold above 10 million barrels since the start of 2019.

While stocks remain high by historical levels, the East of Suez gasoline market continued to see a recovery building momentum. 'Fundamentals on both the supply and demand sides have been strong,' one market observer said. 'Most recent news has been bullish, while prompt demand for gasoline has also been very good,' the source added. This was reflected by the FOB Singapore 92 RON gasoline crack against front-month ICE Brent crude oil futures assessed at $5.80/b yesterday – the highest since mid-October 2018.

Stocks of middle distillates jumped by 31.8% week on week to 2.609 million barrels. Stocks for the category were last higher on November 19, 2018. The East/West arbitrage slammed shut early in the week, with the front-month Exchange of Futures for Swaps, or EFS, spread narrowing drastically. At the Asian close Monday the front-month EFS stood at minus $14.21/mt, but it narrowed to minus $5.80/mt by Tuesday's close. '[The narrowing of the front-month EFS was due to] ICE gasoil weakness ahead of pricing,' a market participant said. Sources also said that there were enough gasoil barrels around the west Africa region to reach Europe, ensuring supply to the latter. 'The arbitrage from Singapore is closed,' the source said, adding that there was a likelihood that Indian gasoil barrels will" point towards Singapore. 'The relative value to send [Indian] gasoil barrels is better than to send it West,' he said.

Stocks of heavy residues were little changed and edged up by 0.7% to 8.633 million barrels. Bunker fuel premiums have been largely rangebound in Fujairah since the last two weeks, sources said. While delivered bunker fuel prices in Fujairah were still lower than in Singapore, this has not significantly boosted uptake. Overall demand was not fantastic even though there had been a slight pick-up in buying compared to last month, sources added. S&P Global Platts data shows that the spot delivered 380 CST bunker fuel premiums over MOPAG 180 CST have averaged $10.60/mt so far in March – little changed from the average seen last month.



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Terminal News
March 13, 2019
The NISTM focus
Marshall Mott-Smith, vice president of the NISTM, explains why a continued focus on environmental protection is important for the bulk liquid storage industry and what is in store at this year’s NISTM For the last 21 years, the NISTM (National Institute for Storage Tank Management) Annual International Aboveground Storage Tank Conference has focused on the environmental protection aspects of bulk petroleum storage management...

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Marshall Mott-Smith, vice president of the NISTM, explains why a continued focus on environmental protection is important for the bulk liquid storage industry and what is in store at this year’s NISTM

For the last 21 years, the NISTM (National Institute for Storage Tank Management) Annual International Aboveground Storage Tank Conference has focused on the environmental protection aspects of bulk petroleum storage management.

In addition to providing technical presentations for various storage processes, including storage operations, corrosion protection, safety, tank integrity and other specialist topics, the key focus of the annual conference is on environmental protection, management, and environmental response.

Mindful of the increasing importance terminal operators are placing on environmental management and protection, the conference provides a range of technical training presentations with essential information to assist industry professionals with environmental compliance.

What makes the conference sessions even more effective is the wide inclusion of all participants, with representatives from regulatory agencies associated with aboveground storage tank systems, facility owners and operators, service providers, equipment manufacturers, industry media, and other industry professionals. This effort to invite and promote the attendance of regulators helps improve industry compliance, individual awareness, communication, and regulator understanding of industry perspectives.

The Environmental Protection Agency (EPA) will provide a day-long pre-conference free training class designed for professional engineers and environmental professionals about how to properly prepare SPCC and FRP plans. The EPA also provides presentations in the plenary and breakout sessions.

The conference has attendees from the Office of Pipeline Safety, Fire Code Officials, Coast Guard Officials, and other federal regulators. Members of NASAP (the National Association of State Aboveground Tank Programme Managers) also attend each year and co-locate their annual meeting with NISTM. These are the larger state programmes with AST regulations for field-erected and shopfabricated storage tanks, with an emphasis on preventing petroleum leaks to the environment. The conference will also have numerous individual presentations about air pollution controls, storm and waste water management, industry reference standards, and environmental protection rules for ASTs.

Industry associations and institutes also contribute to the importance of the conference. The API provides an annual update on industry standards. NACE has its own all-day track for storage tank corrosion protection sessions, and the Steel Tank Institute has a day-long track for field-erected tank construction issues, as well as a half-day track for shop-fabricated storage tank training. Another important co-located event is the Tanks 101 course provided by industry expert Phil Myers. This one-day class provides an excellent venue to pass on essential industry knowledge to the next generation of storage tank professionals.

The trade show, which runs at the same time as the technical sessions, features nearly 200 exhibiting companies, highlighting the importance of this annual event. NISTM has chosen market leading publication Tank Storage Magazine to be official media partner for this event.

Mott-Smith says: 'Another outstanding aspect of the conference and trade show is the excellent opportunity to network with the other attendees and experts at the welcome reception and trade show cocktail mixers. There are over 1000 attendees at these events, and the venues provide a congenial atmosphere with food, drink, and good company for meeting international industry attendees.'

Additionally, more than 200 golfers attend the annual NISTM golf tournament within the Rosen Shingle Creek Hotel the day before the conference starts.

Mott-Smith adds: 'We strike to continue providing a conference and trade show that offers significant value to those who have come, and we thank all previous participants who have supported us.'

The 21st annual NISTM will take place at the Rosen Shingle Creek Hotel, Florida from April 2-4. Marshall will be launching conference proceedings on the first day of the show.For more information visit www.nistm.com.



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Terminal News
March 12, 2019
Petrobras completes sales of Paraguay operations
Petrobras has completed the sale of its entire equity interest in Petrobras Paraguay Distribución, Petrobras Paraguay Operaciones y Logística and Petrobras Paraguay Gas SRL to the Copetrol Group.The companies sold operate in Paraguay in the distribution and sale of fuels, LPG, lubricants and other special products through a network of 201 service stations, as well as a proprietary storage terminal and operations at three airports...

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Petrobras has completed the sale of its entire equity interest in Petrobras Paraguay Distribución, Petrobras Paraguay Operaciones y Logística and Petrobras Paraguay Gas SRL to the Copetrol Group.

The companies sold operate in Paraguay in the distribution and sale of fuels, LPG, lubricants and other special products through a network of 201 service stations, as well as a proprietary storage terminal and operations at three airports.

The transaction was concluded with the payment of $331.5 million by Paraguay Energy to PIB, after fulfilling all precedent conditions, in addition to $49.3 million which had already been paid upon signing of the agreement, resulting in a cash inflow of $380.8 million.



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Terminal News
March 12, 2019
US to lead global oil supply growth
The US will drive global oil supply growth over the next five years as a result of its flourishing shale industry.According to the International Energy Agency's (IEA) annual oil market forecast, the strength of its shale industry in the coming years will trigger a rapid transformation of world oil markets...

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The US will drive global oil supply growth over the next five years as a result of its flourishing shale industry.

According to the International Energy Agency's (IEA) annual oil market forecast, the strength of its shale industry in the coming years will trigger a rapid transformation of world oil markets.

By the end of the forecast, oil exports from the US will overtake Russia and close in on Saudi Arabia, bringing greater diversity of supply.

While global oil demand growth is set to slow down, it will still increase at an annual average of 1.2 mb/d to 2024, according to the Oil 2019 report. The organisation says that it still continues to see no peak in oil demand, as petrochemicals and get fuel remain the key drivers of growth, particularly in the US and Asia. This will offset a slowdown in gasoline due to the growth of electric cars and efficiency gains.

The IEA says: 'Global oil markets are going through a period of extraordinary change, with long-lasting implications on energy security and market balances throughout our forecast period to 2024. The US is increasingly leading the expansion in global oil supplies, with significant growth also seen among other non-OPEC producers, including Brazil, Norway and Guyana.'

The US' ability to transform itself into a major exporter is due to the ability of the US shale industry to respond quickly to price signals by ramping up production. The US accounts for 70% of the total increase in global capacity to 2024, adding a total of 4 mb/d, which follows growth of 2.2 mb/d in 2018.

Iraq reinforces its position as one of the world's top producers, and as the world's third-largest source of new supply, it also drives growth within OPEC to 2024.

Dr Fatih Birol, the IEA's executive director, says: 'The second wave of the US shale revolution is coming. It will see the US account for 70% of the rise in global oil production and some 75% of the expansion in LNG trade over the next five years. This will shake up international oil and gas trade flows, with profound implications for the geopolitics of energy.'

Looking to the upstream sector, the IEA says that investment is set to rise in 2019. Preliminary investment plans by major international oil companies indicate that upstream investment will rise in 2019 for the third straight year. For the first time since the 2015 downturn, investment in conventional assets could increase faster than for the shale industry.

Dr Birol adds: 'These are extraordinary times for the oil industry as geopolitics become a bigger factor in the markets and the global economy is slowing down. Everywhere we look, new actors are emerging, and past certainties are fading. This is the case in both the upstream and the downstream sector. And it's particularly true for the US, by far the stand-out champion of global supply growth.'



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Terminal News
March 12, 2019
Continuous innovation of terminal operations
Technological innovation has the potential to transform the role of a storage terminal from a run and maintain facility to one that continuously improves its processes and operations.Embracing an innovative spirit can not only help deliver value both financially but can also improve safety and help encourage everyone involved in terminal operations to add value to existing processes...

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Technological innovation has the potential to transform the role of a storage terminal from a run and maintain facility to one that continuously improves its processes and operations.

Embracing an innovative spirit can not only help deliver value both financially but can also improve safety and help encourage everyone involved in terminal operations to add value to existing processes.

Drawing on his extensive experience in developing and implementing innovation projects in the oil and gas sector, Matthew Hudson, terminal manager at Shell Haven, Shell, says that a key aspect in fostering an innovative spirit is to ensure that there is an 'enabling culture'.

In an interview with Tank Storage Magazine Hudson says: 'It is important to enable the front line and encourage them to look at problems at a terminal and developing solutions for them.

'It is about coaching them and encouraging them to take ownership of certain initiatives and own the result. This is one of the ways you can drive more innovation.'

The use of professional networks to share good practice and develop new innovations is one of the ways Shell ensures it maintains continuous improvement of its processes. Its various innovation groups invite companies or individuals from outside the sector to discuss how a particular piece of innovation could be transferred into an application in the oil and gas sector.

For example, Hudson's team were able to develop market dyes that attach to hydrocarbons in a facility to act as a leak detection service after a medical surgeon was brought in to discuss how they use marker dyes during surgery.

Recently, Shell has invested in ROV technology for tank cleaning. Hudson is now examining how the company want to progress the use of this technology.

'We are now looking at the next step and how we process the use of this technology. Ultimately, we want to achieve 100% no-man entry in tanks for cleaning. It is important to not only successfully deploy the innovation but also to continuously develop it.'

Other innovations being trialed by the company include the development of instruments to do product quality samples inline to provide more accurate readings and avoid the need to break containment by pulling a physical sample out of the line.

'Both leaders and the workforce need to work together to ensure a company continues continuous improvement. It is the responsibility of leaders to enable culture and ensure that the workforce feels enabled and it is the responsibility of the people on the ground to implement these initiatives.'

Hudson will be speaking more about the practical deployment of new technologies in a terminal on the morning of the second day of the StocExpo Europe conference on March 26-28 at the Ahoy Rotterdam. For more information visit www.stocexpo.com.



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Terminal News
March 11, 2019
Venezuela to pay $8.7 billion compensation bill to ConocoPhillips
An international arbitration tribunal has ordered the government of Venezuela to pay ConocoPhillips $8.7 billion in compensation for the government’s unlawful expropriation of ConocoPhillips’ investments in the country in 2007. The ICSID tribunal ruled in 2013 that the expropriation of ConocoPhillips’ substantial investments in the Hamaca and Petrozuata heavy crude oil projects and the offshore Corocoro development project violated international law...

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An international arbitration tribunal has ordered the government of Venezuela to pay ConocoPhillips $8.7 billion in compensation for the government’s unlawful expropriation of ConocoPhillips’ investments in the country in 2007.

The ICSID tribunal ruled in 2013 that the expropriation of ConocoPhillips’ substantial investments in the Hamaca and Petrozuata heavy crude oil projects and the offshore Corocoro development project violated international law. The current ruling addresses compensation, and the timing and manner of collection still needs to be determined.

Kelly B. Rose, senior vice president, legal, general counsel and corporate secretary of ConocoPhillips, says: ‘We welcome the ICSID tribunal’s decision, which upholds the principle that governments cannot unlawfully expropriate private investments without paying compensation.’

In separate and independent legal action in April 2018, an international arbitration tribunal awarded the company $2 billion from Petróleos de Venezuela, S.A. (PDVSA), Venezuela’s state-owned oil company, and two of its subsidiaries. The ruling followed PDVSA’s failure to uphold its contractual commitments in response to Venezuela’s unlawful expropriation of ConocoPhillips’ investments in the Hamaca and Petrozuata projects. In August last year, ConocoPhillips announced it entered into a settlement agreement with PDVSA to recover the full amount owed under that award.

In the early 1990s, Venezuela created a new fiscal framework to attract foreign investment in its heavy oil projects in the Orinoco Belt and elsewhere. Relying on these terms, ConocoPhillips helps Venezuela to develop the Petroxuata, Hamaca and Corocoro projects by providing technology and substantial long-term investments to the government of Venezuela. However, in the summer of 2007, the Venezuelan government expropriated ConocoPhillips’ investments in their entirety without compensation.

 



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Terminal News
March 8, 2019
StocExpo Europe 2019 announces key industry topics
The most prominent challenges, developments and solutions in the global tank terminal industry have been announced as the focus of StocExpo Europe 2019. IMO 2020, the rise of new technologies - AI, cyber-security and automation - geopolitical uncertainty and the energy transition, make up the key themes that will be discussed during the three-day conference and exhibition at the Ahoy in Rotterdam on March 26-28...

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The most prominent challenges, developments and solutions in the global tank terminal industry have been announced as the focus of StocExpo Europe 2019.

IMO 2020, the rise of new technologies - AI, cyber-security and automation - geopolitical uncertainty and the energy transition, make up the key themes that will be discussed during the three-day conference and exhibition at the Ahoy in Rotterdam on March 26-28.

One of the key themes at the conference will be IMO 2020, the regulation for a 0.50% global sulphur cap on marine fuels which comes into effect on 1 January 2020. Cüneyt Kazokoglu, director of long-term oil service and head of oil demand at FGE, will present a session on how IMO 2020 will impact global crude oil on the first morning of the three-day conference. Mark Williams, managing director at Shipping Strategy, will use his presentation, titled 'Are you ready for IMO 2020?', to address the questions many are asking with respect to fuel costs and fuel availability. He will also discuss the characteristics of the new fuels on the market, including marine gasoil (MGO), very low sulphur fuel oil (VLSFO) and liquefied natural gas (LNG), as well as how the cap is going to be enforced. In addition to technical and operational issues, those in attendance at StocExpo Europe 2019 will have the chance to reflect on the commercial and contractual issues caused by this global piece of legislation.

The entire second day of the CPD-certified conference programme is dedicated to discussions surrounding 'The Terminal of Tomorrow'. Steven Van Belleghem will be delivering the keynote talk on how to win business in a world increasingly driven by AI, robots and automation. The world-renowned motivational speaker will identify and expand upon the three areas of investment decision-makers must focus on if they are to lead AI first companies; data leverage, effortless user interfaces and augmented intelligence. Shell's terminal manager, Matthew Hudson, and leading experts from Siemens, Vortexa and the Port of Rotterdam will also engage in a panel discussion on ways to future-proof the tank terminal sector. This conversation will, amongst other things, consider how the industry can secure itself against cyber security threats. This theme will be given exclusive attention in a presentation delivered by Ilya Tillekens and Marcel Jutte of Hudson Cybertec, earlier on in the day.

In addition to industry-wide discussions on the latest technologies, StocExpo Europe 2019 will also see its conference speakers and exhibitors demonstrate how technology is being harnessed to develop world-leading products and services. For instance, Ronald Backers, business intelligence at the Port of Rotterdam, will present advice on how to transform a port's operational environment through digital strategies. Wilfried Kleiser, senior project manager at Siemens, will follow this with a session on how Internet of Things (IoT) can be used to improve efficiency at the terminal. Implico, the oil and gas specialist, is also exhibiting at StocExpo, bringing with it the latest software solutions, data services and cloud technologies that have been developed for storage and distribution networks. These solutions have all been designed to boost automation and digital transformation in the downstream oil and gas industry.

Implico urges the industry to start its digital journey, as do MoniTank and Agidens, both of whom are exhibiting at StocExpo Europe 2019. The latter is launching its ATALK safety technology at the event, an automated safety solution that enables critical alarm messages to be sent to responsible operators on site at tank terminals or chemical plants. By using the system, manual action to transmit such messages is no longer required, thus removing delays and the potential for human error. This kind of automated technology will also be showcased in MoniTank's underground storage tank risk mitigation system. The product is capable of transmitting the condition of tanks online and to defect-recognition software making remote inspection possible, removing the need for decommissioning or downtime monitoring activity.

The final industry trends to be explored at StocExpo Europe 2019 are the energy transition and geopolitical uncertainty. Jean-Baptiste Renard, CEO at 2PR Consulting, will share his vision of the strategic options all oil majors should be engaging with in light of the industry upheaval bought in by the global decarbonisation agenda. The impact of geopolitical uncertainties for the tank terminal industry will be reflected upon by Andras T. Peller, director at Swiss Fire Protection Research and Development AG, who will speak about protecting storage tank installations in conflict zones. Attendees of Peller's talk will learn about the ways in which newly developed technologies, such as the Pressurized Instant (Pi) Foam fire system, work to safeguard against the damage caused at refineries or massive storage tank facility ranges by sabotage attacks.

Mark Rimmer, StocExpo & Tank Storage Portfolio divisional director, says: 'StocExpo has its finger on the pulse when it comes to satisfying interest in the hot topics within the tank terminal industry. This is what brings industry professionals in their thousands to the event every year.'

Over 200 exhibitors and more than 30 conference speakers, including CEO's, Terminal Managers and Analysts from industry-leading organisations like Shell, will contribute to the pool of thought-leadership on show. Rimmer adds: 'Terminals, traders, oil majors, investors and others will have the chance to learn from one another, share best practice and benefit from a range of networking opportunities.'

For more information on the event visit www.stocexpo.com.



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Terminal News
March 8, 2019
Rio Grande LNG has secured a lease agreement with the Brownsville Navigation District for land to build an LNG export terminal.The lease agreement, which covers an 984-acre parcel of land in Cameron County, Texas, carries an initial term of 30 years, with two options to renew and extend the term of the lease for period of ten years each...

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Rio Grande LNG has secured a lease agreement with the Brownsville Navigation District for land to build an LNG export terminal.

The lease agreement, which covers an 984-acre parcel of land in Cameron County, Texas, carries an initial term of 30 years, with two options to renew and extend the term of the lease for period of ten years each. The lease agreement supersedes exclusive site option agreements.

On the site in the Port of Brownsville, NextDecade, of which Rio Grande LNG is a subsidiary of, plans to construct, operate, and maintain a LNG export terminal, including gas treatment, liquefaction and other supporting facilities and infrastructure.

Rio Grande LNG and its associated Rio Bravo Pipeline are one of the largest proposed private investments in Texas.

Matt Schatzman, president and CEO of NextDecade, says: 'We are pleased to have formally executed our lease agreement with the Brownsville Navigation District, and appreciate the ongoing support of Chairman Reed and the BND Commission. As we continue to advance our Rio Grande LNG project, we look forward to creating opportunities for local workers and communities across the Rio Grande Valley.'



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Terminal News
March 7, 2019
India’s Ennore LNG terminal commissioned
India's first East Coast regas project, Ennore LNG terminal, has been commissioned by Indian Oil Corporation.Prime Minister Narendra Modi led the dedication ceremony to the LNG import terminal at Kamarajar Port in Tamil Nadu. Once complete, the terminal will have a capacity of five million tonnes per annum...

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India's first East Coast regas project, Ennore LNG terminal, has been commissioned by Indian Oil Corporation.

Prime Minister Narendra Modi led the dedication ceremony to the LNG import terminal at Kamarajar Port in Tamil Nadu. Once complete, the terminal will have a capacity of five million tonnes per annum. Indian Oil is laying a 1,244 km pipeline for evacuation of gas from the terminal in order to supply natural gas to various customers.

The project is part of efforts to double the country's regas capacity to 56.5 mmtpa by 2025.

Wood Mackenzie's senior analyst Kaushik Chatterjee says: 'The Ennore terminal will help fast-track IOCL's city gas distribution plan, as gas from the terminal will be supplied to consumers around Chennai and Madurai.

'In the longer term, Ennore could become integrated with India's national gas network via a pipeline to Vijayawada or Kakinada in Andhra Pradesh. Historically, delays in intra-state pipeline construction have impeded gas and LNG usage in India. The pipeline connecting the Kochi regas terminal in Kerala to Mangalore in Karnataka is a glaring example.

'The company has additional plans to connect remaining refineries to gas pipelines, which will likely at least double its gas demand. IOCL has signed a 0.7-mmtpa contract with Mitsubishi for 20 years, with supply coming from Cameron LNG in the US. We believe the commissioning of Ennore may also lead IOCL to source more LNG directly rather than via Petronet.

'Indian regas capacity had constrained imports in recent years. Both Dahej and Hazira operated at maximum levels through much of 2018. The commissioning of Ennore will be the first in a series of regas projects coming online in 2019; Mundra and Jaigarh FSRU are next.

'One additional terminal is under construction at Dhamra on India's east coast and is expected to complete in 2022. Furthermore, Dahej's capacity is being increased by 2.5 mmtpa to 17.5 mmtpa, while the completion of the Kochi pipeline and Dabhol breakwater are also likely by 2020.

'Once all these terminals and enhancements are completed, India's regas capacity will reach 56.5 mmtpa by 2025 from the existing 25.5 mmtpa. Beyond this, India's ability to import significant volumes of LNG could be enhanced further if several other proposed regas terminals proceed.'



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Terminal News
March 7, 2019
Fujairah: Oil product stocks down 2.3%
As of Monday, March 4 total oil product stocks in Fujairah stood at 21.547 million barrels. Inventory levels fell 2.3% or 513,000 barrels week on week based mainly on a draw down in volumes of heavy residues. Stocks of light distillates rose by 5.1% week on week...

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As of Monday, March 4 total oil product stocks in Fujairah stood at 21.547 million barrels. Inventory levels fell 2.3% or 513,000 barrels week on week based mainly on a draw down in volumes of heavy residues.

Stocks of light distillates rose by 5.1% week on week. Total volumes rose by 534,000 barrels to stand at 10.99 million barrels. Light distillates stocks have held steady above the 10 million barrels level since the start of 2019.

Despite the build in light distillate stocks, the East of Suez gasoline market showed signs of strength with turnarounds across a number of North Asian refiners expected to lead to an impact on supplies in the region. 'Sentiment is clearly better than the previous weeks,' a trader said. Closer to Fujairah, Kuwait's KPC issued a tender seeking 25,000 mt of 91 RON gasoline for delivery into Mina Al-Ahmadi over March 27-28. The FOB Singapore 92 RON gasoline crack against front-month ICE Brent crude oil futures hit a four-month high on Monday of $2.41/b before moving up another 46 cents/b on Tuesday to hit $2.87/b.

Stocks of middle distillates showed a gain of 9.3% week on week moving to 1.980 million barrels. This reflects a build of 168,000 barrels week on week. Sentiment was seen as softening with cash differentials for gasoil falling for four consecutive days with the Mean of Platts Singapore cash differential for 10ppm cargoes moving into further negative territory Tuesday falling to 5 cents/b from Monday to a 27 cents/b discount.

Stocks of heavy residues saw the largest decrease this week moving down 12.4% to 8.877 million barrels falling 1.214 million barrels on the week. Within Fujairah traders reported a persistence of ample supply of bunkers, a feature of the market that has stood since the start of the year. As a result premiums for both delivered and ex-wharf bunkers fell in February. S&P Global Platts data shows that the spot delivered 380 CST bunker fuel premiums over MOPAG 180 CST averaged $11/mt last month, a fall of $6/mt from January.



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Terminal News
March 6, 2019
ExxonMobil completes Rotterdam refinery expansion
ExxonMobil has shipped the first Group II base stocks from its newly expanded Rotterdam refinery, which is the first world scale producer of Group II base stocks in Europe.This makes ExxonMobil the only Group I and II base stocks producer with significant manufacturing assets in the US, Europe and Asia-Pacific...

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ExxonMobil has shipped the first Group II base stocks from its newly expanded Rotterdam refinery, which is the first world scale producer of Group II base stocks in Europe.

This makes ExxonMobil the only Group I and II base stocks producer with significant manufacturing assets in the US, Europe and Asia-Pacific.

Start up of EHC production at the Rotterdam refinery has begun following the completion of the $1 billion hydrocracker expansion project in the fourth quarter of 2018. The project also increases production of ultra-low sulphur diesel and improves the refinery's energy efficiency by 5%.

Base stocks storage capacity at the Rotterdam refinery was increased with the expansion, helping ensure improved supply reliability and ExxonMobil's expanded collaboration with additive companies provides maximum product coverage. The company's EHC base stocks slate helps enable cost-effective blending of the majority of lubricant applications in the automotive, heavy-duty and industrial sectors. As a result of the expanded collaboration, a number of market-general formulations for EHC grades are available from the main additive suppliers.

Nick Berthiaux, vice president, basestocks & specialties, says: 'By continuously growing our manufacturing network, we are strengthening our global supply capability, and providing customers with an efficient and robust product offer. Seeing the first shipment of our EHC base stocks gives us all great satisfaction, and reaffirms that our offer is unique, differentiated and valued by the market we serve.'

ExxonMobil Basestocks will continue to expand its Group II supply capabilities with a hub terminal in Hamburg, Germany, scheduled for late summer.



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Terminal News
March 4, 2019
GrainCorp to sell Australian bulk liquid storage terminals
GrainCorp has entered into an agreement to sell its Australian bulk liquid terminals to ANZ Terminals for $350 million.The bulk liquid terminals business in Australia was acquired by GrainCorp in 2012 as part of the acquisition of Gardner Smith. It operates eight liquid terminals sites across the country, with a combined storage capacity of 211...

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GrainCorp has entered into an agreement to sell its Australian bulk liquid terminals to ANZ Terminals for $350 million.

The bulk liquid terminals business in Australia was acquired by GrainCorp in 2012 as part of the acquisition of Gardner Smith. It operates eight liquid terminals sites across the country, with a combined storage capacity of 211.000 m3. The sites specialize in the storage and handling of bulk liquid fats and oils, fuels and chemicals for a range of customers, including GrainCorp Oils. As part of the transaction, GrainCorp Oils will enter into a long-term storage agreement with ANZ Terminals.

Mark Palmquist, GrainCorp managing director and CEO, says: 'Since we acquired the assets in 2012, the Australian bulk liquid terminals business mix has evolved substantially and is increasingly serving other sectors, in addition to the edible oils commodities that are more closely aligned with GrainCorp's core business. Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, whilst releasing capital and unlocking significant value for our shareholders.'

GrainCorp has retained ownership of its New Zealand bulk liquid terminals, which are more fully integrated into its supply chain, however, it is independently reviewing options for this business as part of the ongoing portfolio review.



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Terminal News
March 4, 2019
Gibson Energy announces more capacity at Hardisty terminal
Gibson Energy plans to build an additional 500,000 barrels of new capacity at its Hardisty Terminal.The announcement follows the signing of a long-term agreement with an investment grade customer, the closing of the divestitures of Wholesale Propane and non-core Environmental Services North, and continued execution on its infrastructure growth projects...

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Gibson Energy plans to build an additional 500,000 barrels of new capacity at its Hardisty Terminal.

The announcement follows the signing of a long-term agreement with an investment grade customer, the closing of the divestitures of Wholesale Propane and non-core Environmental Services North, and continued execution on its infrastructure growth projects.

Steve Spaulding, president and CEO, says: 'We continue to demonstrate very strong execution on our infrastructure growth projects, with three new tanks totaling 1.1 million barrels at our Hardisty Terminal as well as the Viking Pipeline entering service ahead of schedule and in line with budgeted capital.

'In addition, the remaining tanks currently under construction at our Hardisty Terminal are ahead of schedule and we have also sanctioned the construction of an additional tank, underpinned by a long-term agreement and consistent with our outlook of two to four tanks per year over the medium-term. Based on commercial discussions, we expect to sanction several additional projects over the course of 2019, and importantly, we will ensure we remain fully funded from our entire sanctioned capital programme.'

The announced expansion represents the fourth phase of development to be constructed at the hop of the hill portion of the terminal. It is expected to be in service in the fourth quarter of 2020.

In mid-February, Gibson successfully placed the first phase of development at the top of the hill portion of the Hardisty Terminal into service ahead of schedule with capital costs in-line with budget. The facility has reached an aggregate storage capacity of 10 million barrels.

In the US, the company expects to begin construction of the pipeline connection between its Pyote East gathering system and the Wink Terminal in the second quarter, with the project expected to enter service in the fourth quarter of 2019.



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Terminal News
March 4, 2019
Komipo & Vitol sign LNG MoU
Korea Midland Power and Vitol have signed an MoU to explore upstream, midstream and downstream project opportunities in LNG.Under an existing long-term supply and purchase agreement signed in 2015, Vitol agreed to supply Komipo with 400,000 tonnes of LNG annually for 10 years...

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Korea Midland Power and Vitol have signed an MoU to explore upstream, midstream and downstream project opportunities in LNG.

Under an existing long-term supply and purchase agreement signed in 2015, Vitol agreed to supply Komipo with 400,000 tonnes of LNG annually for 10 years.

Hyung Koo Park, president and CEO of Komipo, says: 'Komipo looks forward to developing its relationship with Vitol, our trusted partner in the LNG business.'

Russel Hardy, CEO of Vitol Group, adds: 'We are delighted to strengthen our partnership with Komipo, a highly well-respected company in the region, and look forward to working with them on future opportunities.'



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Terminal News
February 28, 2019
Navigator Energy Services to expand pipeline & storage system
Navigator Energy Services is significantly expanding its Glass Mountain Pipeline System, including adding new segregated crude grades and additional storage and transportation capacity.The project will include multiple new origin points, and new market access at Cushing, Oklahoma...

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Navigator Energy Services is significantly expanding its Glass Mountain Pipeline System, including adding new segregated crude grades and additional storage and transportation capacity.

The project will include multiple new origin points, and new market access at Cushing, Oklahoma. The system currently serves crude oil and condensate producers and other shippers in the STACK, Woodford/Cana, Granite Wash and Mississippi Lime areas of the Anadarko Basin in central Oklahoma.

The expansion will add five new mainline origination points in Canadian, Kingfisher and Grady Counties, Oklahoma, further extending the service into the STACK, Woodford/Cana, Merge and SCOOP plays.

The project will include 70 miles of new transportation mainlines and 750,000 barrels of additional storage capacity. Underpinning the expansion are multiple long-term agreements with top tier operators representing more than 50,000 barrels per day of existing production and almost 600,000 operated acres, bringing Navigator's total dedicated acreage in Oklahoma to more than 800,000 acres.

Navigator has begun initial construction of the Cushing Express Pipeline, a new 20-inch pipeline to transport segregated crude grades from the production field to its destinations in Cushing. It will add an initial 250,000 bpd of incremental deliverability.

In response to demand and increased throughput needs, Navigator completed a new interconnection with Cushing terminals owned by a subsidiary of Magellan Midstream Partners. The Magellan terminal will provide Navigator with access to a high-capacity distribution network, reaching new markets and 1.75 million barrels of operating storage to break out Navigator's neat crude and condensate grades. As a result of its Magellan terminal position, Navigator's Cushing tankage storage capacity is 2.75 million barrels. The increase in storage capacity allows Navigator to provide its customers a bulk storage solution for each of its crude and condensate segregations prior to batching downstream.

The new destination and storage will also seamlessly integrate into Navigator and Magellan's proposed Voyager Pipeline, which will provide Navigator customers a direct path from the Oklahoma production field to the Gulf Coast.

Laura McGlothlin, Navigator CCO, says: 'The new assets and segregated grade offerings, along with integration to the proposed Voyager Pipeline, are a strategic and consistent extension of Navigator's overarching business plan to provide the optimal transportation solution to shippers, directly linking multiple production areas and crude grades with end-users in liquid market.'

Once complete, the system will include more than 440 miles of pipeline, 10 truck injection stations, 4.3 million barrels of storage to accommodate five neat grades of crude oil and condensate, and pipeline capacity to transport in excess of 450,000 bpd.



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Terminal News
February 28, 2019
ADNOC to build world’s largest underground crude oil storage facility
ADNOC has signed an agreement with South Korea's SK Engineering and Construction to build the world's largest underground crude oil storage facility.The underground facility will have the capacity to store 42 million barrels of crude oil in Fujairah in the UAE...

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ADNOC has signed an agreement with South Korea's SK Engineering and Construction to build the world's largest underground crude oil storage facility.

The underground facility will have the capacity to store 42 million barrels of crude oil in Fujairah in the UAE.

The EPC contract is for the construction of three underground storage caverns, each with a capacity of 14 million barrels, deep blow ground level. This contract is the largest for a single project award for underground crude oil storage in the world and is valued at AED 4.4 billion ($1.21 billion).

The ADNOC Fujairah Underground Storage will strengthen the UAE's position as a reliable supplier of crude oil as well as give ADNOC greater flexibility, allowing it to manage and optimise its delivery schedule and support its broader move into trading. It will also enhance its position as one of the key trading and supply partners in Fujairah's growth as a global oil and products storage and trading hub.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO says: 'Construction of the world's largest single underground project award ever awarded for oil storage will enhance the UAE's energy security, in line with the wise guidance of the country's leadership. Importantly, developing this strategic oil storage mega facility in Fujairah will also support and further enable our broader trading ambitions, strengthening our ability to respond efficiently and competitively to the needs of our customers, while also providing ADNOC with greater flexibility to proactively respond to market needs and commercial opportunities.'

Works started in 2018 and the first phase of the facility, involving the construction of an access tunnel, has been completed.

When complete in 2022, the facility will be one of the largest facilities of its kind in the world and able to store three different types of crude oil, providing ADNOC with increased flexibility to export crude through Fujairah's Arabian Sea oil terminal.



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Terminal News
February 27, 2019
European Commission, CLH and FuelsEurope to speak at 2019 FETSA conference
Blanca André Ordax from the European Commission has been announced as one of the key speakers at this year's FETSA AGM conference & exhibition.Ordax will be speaking on the topic of the energy transition at the event in Tarragona from June 12-13...

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Blanca André Ordax from the European Commission has been announced as one of the key speakers at this year's FETSA AGM conference & exhibition.

Ordax will be speaking on the topic of the energy transition at the event in Tarragona from June 12-13.

Other key speakers at the event include Jorge Lanza Perea, CEO of CLH, who will be speaking about oil logistics resilience and Alessandro Bartelloni, policy director of FuelsEurope, who will speaking about the company's vision on the market in 2050.

The theme for this year's event is European bulk liquid storage: Ensuring resilience in the supply chain. Other speakers on the programme include Phillip Ellett from the German Car Manufacturers Association VDA, Pedro Miras Salamanca, chairman of CORES (Spanish Oil Stockholding Agency) and Matthias Plötzke, policy advisor Fuels Policy and Climate Protection, MEW.

The FETSA AGM, now in its sixth year, is the only event of its kind to be run directly by tank terminal operators. For second year running it is jointly organised by market leading conference and exhibition organiser StocExpo & market leading publication Tank Storage Magazine.

The conference & exhibition will be held the day after the FETSA AGM, guaranteeing that all the major European terminal operators will be present. The event includes a networking lunch & dinner, a port tour as well as several site visits.

FETSA is the umbrella association for all European national tank storage associations and between them the associations represent 85 million m3 of independent storage capacity.

This year the event will be held at the well-known theme park PortAventura World in Tarragona, giving even more reasons for tank terminal professionals to attend.

View the full programme and find our more information here.

Exhibition booths are strictly limited. To book contact: emma@stocexpo.com



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Terminal News
February 27, 2019
SLNG terminal completes modifications to second jetty
Singapore LNG Corporation has completed modifications to its secondary jetty at its terminal on Jurong Island.The company is now able to receive and reload small LNG ships of between 2,000 m3 and 10,000 m3 in capacity. This new small-scale LNG facility will help spur the development of the small-scale LNG market in various forms, for example, in the supply of LNG to isolate power plants in remote areas in the region, or in the delivery of LNG as bunker fuel to ships in the Port of Singapore...

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Singapore LNG Corporation has completed modifications to its secondary jetty at its terminal on Jurong Island.

The company is now able to receive and reload small LNG ships of between 2,000 m3 and 10,000 m3 in capacity. This new small-scale LNG facility will help spur the development of the small-scale LNG market in various forms, for example, in the supply of LNG to isolate power plants in remote areas in the region, or in the delivery of LNG as bunker fuel to ships in the Port of Singapore.

The secondary jetty was originally designed to accommodate LNG ships of 60,000 m3 to 265,000 in size. Following a successful gas-up/cool-down and reload operation in June 2017, the company took the initiative to start modification works to its secondary jetty so that even smaller LNG ships could reload at the terminal. These modifications include the installation of a new marine loading arm and gangway, and new facilities for securing small LNG ships at the jetty.

Sandeep Mahawar, interim CEO and vice president of SLNG, says: 'We believe that there is good potential for the small-scale LNG market to flourish in this part of the world, and the timely completion of the SSLNG facility is an important step forward in SLNG's efforts to support this growth.

'It also serves to promote the development of LNG bunkering in Singapore, which is another potential growth area given Singapore's already well-established reputation as the top bunkering port in the world.

'As demand builds and there is a viable business case, SLNG may consider installing topsides at its tertiary jetty to accommodate more SSLNG reloads.'



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Terminal News
February 27, 2019
ADNOC & Korea sign agreements to explore oil storage expansion
ANOC has signed three framework agreements with Korean energy companies to explore upstream and downstream investment opportunities.The agreements will explore upstream exploration and production opportunities, potential downstream investments and bunkering opportunities for both crude oil and LNG...

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ANOC has signed three framework agreements with Korean energy companies to explore upstream and downstream investment opportunities.

The agreements will explore upstream exploration and production opportunities, potential downstream investments and bunkering opportunities for both crude oil and LNG.

The agreements have been signed with the Korea Gas Corporation, the world's second largest buyer of LNG, which has conducted a feasibility study on LNG bunkering at Fujairah Port, the Korean National Oil Company, which has a 30% stake in ADNOC's Al Dhafra Petroleum Company and is seeking to increase oil storage in South Korea by 24 million barrels until 2025 and GS Energy, which has a 10% stake in AL Dhafra Petroleum and 3% stake in ADNOC Onshore.

The agreements were signed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNCO Group CEO and Kim Young Doo, KOGAS CEO, Yang, Su Yeong, KNOC CEO and Huh, Yongsoo, GS Energy CEO.

H.E. Dr Al Jaber says: 'Our discussion explored domestic and international growth opportunities across a range of areas, including oil and LNG bunkering, meeting the Republic of Korea's growing energy demands and attracting investment to our expanding upstream exploration and development operations and our downstream and gas expansion plans.

'As we successfully deliver our 2030 smart growth strategy, we will continue to work with partners who enable us to unlock and maximise value, contribute technology and help us secure access to the new centers of global demand.'

According to the International Energy Agency, South Korea is home to three of the 10 largest crude oil refineries in the world. As part of its efforts to become a major liquids storage and trading hub in northeastern Asia, KNCO, through joint ventures with other firms, has been building the country's first commercial terminals for crude oil and petroleum products at Yeosu and Ulsan, which will hold a total capacity of 36.6 million barrels.

The first facility, located in Yeosu in the southwestern region of the country, came online in 2013, with 8.2 million barrels of capacity. The other two facilities are being constructed in two phases in Ulsan in the southeastern region of the country and will bring 28.4 million barrels of capacity online by 2026.



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Terminal News
February 27, 2019
Ineos to invest £1 billion in UK energy system
Ineos has announced plans to invest £1 billion in its UK assets on various projects, including in the Forties Pipeline System.The biggest investment being made is in the Forties Pipeline System, which comprised £500 million to transform the asset and extend the life of the pipeline by at least 20 years, into the 2040s...

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Ineos has announced plans to invest £1 billion in its UK assets on various projects, including in the Forties Pipeline System.

The biggest investment being made is in the Forties Pipeline System, which comprised £500 million to transform the asset and extend the life of the pipeline by at least 20 years, into the 2040s.

Ineos intends to overhaul the reliability of the 500km pipeline system, including modernising the environmental systems and implementing the latest technology into its systems. This investment will rejuvenate FPS, delivering a long-term asset that meets the needs to North Sea oil and gas producers.

The system, which opened in 1975, is a strategic asset in the UK that can transport up to 600,000 barrels of North Sea oil onshore for refining every day. It transports 40% of the UK's oil and gas to the mainland.

Andrew Gardner, Ineos FPS CEO, says: 'North Sea oil and gas producers are telling us that they want to be in the North Sea well into the 2040s so we are making this commitment to be there with them.

'Following the acquisition of FPS in 2017 we are now embarking on a period of investment that will guarantee that the system can support them for decades to come.'

Other investments announced by the company include a £350 million investment in the Grangemouth site to develop a new steam and power plant as well as £150 million in Hull to construct a new vinyl acetate monomer plant.

Sir Jim Ratcliff adds: 'At an uncertain moment for the UK, Ineos has confidence in its businesses and is committed to continue investing in manufacturing and high skilled jobs in the UK.'



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Terminal News
February 27, 2019
Using artificial intelligence to improve safety
Robert Nuttal, principal engineer at Petronas talks about how the company uses innovative strategies to maximise storage safety and efficiency in the Middle East What is your advice for terminal and operations managers to utilise risk-based inspection to monitor tanks' conditions?RBI provides opportunities to rationalise corrosion integrity management programmes by adopting a proactive approach that satisfies regulatory requirements and rationalises the extent of monitoring and inspection...

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Robert Nuttal, principal engineer at Petronas talks about how the company uses innovative strategies to maximise storage safety and efficiency in the Middle East

What is your advice for terminal and operations managers to utilise risk-based inspection to monitor tanks' conditions?

RBI provides opportunities to rationalise corrosion integrity management programmes by adopting a proactive approach that satisfies regulatory requirements and rationalises the extent of monitoring and inspection.

The implementation should maintain safety and reduce the risk of unpredicted leakage. Personnel should trained in the use and application of the system.

What would the practical applications be when applying major safety standards and managing risks to reduce the chances of oil spills?

The move from prescriptive to risk-based integrity management requires the identification and rationalisation of monitoring and inspection programmes to address the risks. Assuming sufficient and correct monitoring/inspection data the application of RBI may enable extended operating windows. It becomes important to consider probability of detection with regards to operating conditions, monitoring, inspection and maintenance.

How can terminal managers protect their storage tanks further against corrosion?

Given service life requirements are often greater than 25 years a tank becomes a critical item. Corrosion control and management requirements from conception to abandonment must be identified and fulfilled. All specifications must be fully adhered to (foundations, drainage, materials, fabrication/welding, coatings, CP, etc.) and any impact or potential impact on the planned corrosion mitigation identified. A lack of redundancy makes unplanned loss of containment totally unacceptable. Required standards must be achieved and maintained.

What are your views on the importance of conducting detailed terminal auditing and inspection?

If a dead leg or small-bore fitting is not known to exist and/or operating/environmental conditions have changed it is not possible to manage any potential corrosion threat. Therefore, although demanding in both time and resources detailed auditing is a critical feature of an integrity management programme. Internal audits also facilitate transfer of knowledge and development. There is also a requirement to validate/demonstrate the initial risk assessment is correct and justified.

How can overall business operations be impacted with artificial intelligence in inspection and maintenance assets for tanks?

The application of AI potentially opens the inspection window by removing requirements for human entry / close human proximity to a tank. However, distortion of the tank bottom (rippling), disbondment of internal coatings, the location/attachment of sacrificial anodes and/or the presence of sediments/debris etc., may result in challenges and introduce unacceptable measurement errors – planning is required and personnel require training in the application of AI tools, operating requirements, interpretation of data and limitations.

What is your best advice for tanks and terminal managers to comply to inter tank spacing and scheduled maintenance?

In my opinion inter tank spacing is predominantly a health and safety issue. Generally it would not be expected to affect requirements for corrosion management, corrosion monitoring or corrosion rates. The value gained from scheduled maintenance practices should be reviewed in the light of inspection and monitoring records and rationalised based on risk.

Nuttal will be speaking at Tanks and Terminals 2019: Operations, Maintenance and Integrity on March 18-20 2019 in Dubai. Visit www.marcusevans-conferences-middleeastern.com for more information.



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