An expansion of Klaipėda oil terminal, which stores light oil products, has been announced by its management board.
The work contracts comprise a major building project, costing €35.9 million, for the expansion of light oil products storage at the facility. This involves the construction of six refined oil storage tanks, each with a capacity of 20,000 m3. The work will be carried out by SIA SKH and UAB Energetikos Remonto ir Montavimo Centras at a cost of €13.8 million.
Additionally, AB Montuotojas and UAB Hidrostatyba, will build two 10,000 m3 tanks and four 5,000 m3 reservoirs, which will cost €9 million.
Both project are due to be competed in the next 22 months.
Mindaugas Jusius, CEO of KN (AB Klaipėdos Nafta), which operates the facility, says: 'When the planned investments are carried out, the Klaipėda oil terminal will gain an extra competitive edge. This is highly important in maintaining and attracting new volumes of oil products to Klaipėda as competition in the oil product market is becoming more intense.
'We are already faced with the need to offer more flexibility which would enable us to load different types of oil products and store larger quantities of loaded oil products.'
ATS has started operations at its new tank storage terminal in New Mangalore Port, India.
Raftaar Terminals is the first tank terminal at the port to be constructed in stainless steel, with a capacity of 316L and a jetty pipeline making it suitable for all acids. It can also handle a wide range of petroleum products including naphtha, gas oil, motor spirit, para-xylene, methanol and petrochemicals.
The facility has incorporated a green policy, with 33% of land dedicated to a green belt around the terminal. It also has LED lights, VDFs for power saving and solar energy for lighting systems and water heating.
Oman Trading International has acquired a 40% ownership in Hass Petroleum Group – a Kenyan oil marketing company.
The sale will see Hass embarked on strategic growth and expansion plans across the Eastern, Central and Horn of Africa.
It will invest the funds from the transaction to enhance its market visibility by investing in additional distribution assets, particularly its service stations across its key markets in the region.
It will also boost its working capital and increase competitiveness in the open tender system.
OTI will provide its supply and trading capabilities to strengthen Hass' service offering as well as enhancing services to consumers and contribute to economic growth across the region.
In a joint statement, the companies say that the acquisition is in line with both of their long term strategies.
'OTI's strategic priority of accelerating its growth by entering new emerging markets with high potential will fit well with Hass's aspiration of being Africa's leading oil market company. As a regular supplier of refined products to the Southern and East African region, this transaction will enable OTI and its new partner Hass to strengthen their businesses across a substantial African footprint.'
Hass operates a series of major oil terminals and retail station networks in countries including Kenya, Tanzania, Uganda and the Congo.
Abdinasir Ali Hassan, chairman and founder of Hass, says: 'I am convinced that this partnership is a major step in ensuring Hass' continued competitiveness across the region and I am confident that with OTI we can achieve our mutual long-term growth aspirations.'
Talal Hamid Al-Awfi, CEO of OTI, adds: 'Hass is a unique business with substantial scale and growth potential where we have enjoyed a long standing relationship; most importantly we share a common understanding and vision of the African energy market.'
The largest global increase of crude oil inventories is expected in the second quarter of 2018.
The EIA's Short-term energy outlook was revised slightly downward following OPEC's announcement of an extension to production cuts for the next nine months.
OPEC's crude oil production target will remain at 32.5 million barrels per day through to the end of the first quarter of 2018. As a result, the EIA now forecasts OPEC members' crude oil production to average 32.3 million barrels per day in 2017 and 32.8 million barrels per day in 2018.
Total OPEC liquid fuels production is also expected to be lower than previously forecast however, continuing production growth in many non-OPEC countries is expected to moderate the pace of global liquid fuels inventory draws in 2017.
The largest global inventory increase in the forecast occurs in the second quarter of 2018, when Brazilian and OPEC production are expected to increase by 570,000 barrels per day and 220,000 barrels per day, respectively.
Supply growth in 2018 could contribute to downward pressure in oil prices as early as late 2017. However, EIA's STEO forecast assumes that OPEC cuts will be extended beyond March 2018 but that non-compliance will begin to grow in late 2017 and increase in the second half of 2018.
The agency expects US crude oil production to increase through 2018, averaging 9.3 million barrels per day in 2017 and 10 million barrels per day in 2018.
One of the largest oil terminals in the US has been acquired by SemGroup Corporation from investment funds managed by Alinda Capital Partners.
The 16.8 million barrel terminal, on 330 acres of land, is located on the US Gulf Coast with pipeline connectivity to the local refining complex, deep water marine access and inbound pipeline, rail and truck receipt capabilities from all major producing basins.
The business is fully supported by take-or-pay contracts with primarily investment-grade counterparties that have been customers for an average of 15 years. The facility is currently undergoing a series of growth projects, including a new ship dock, a new pipeline and connections as well as an additional 1.45 million barrels of crude oil storage. This is due to be completed by mid-2018.
Carlin Conner, SemGroup president and CEO, says: 'This is a transformational acquisition that adds tremendous stability to our business and provides a dynamic platform for growth.
'With the additional of [the terminal], SemGroup will be uniquely positioned to capture the future trends in exporting crude oil and refined products resulting from the near and long-term anticipated growth in US shale production.'
The acquisition is expected to close in the third quarter of 2017.
Vitol has completed its acquisition of Petrol Ofisi Holding in Turkey.
Petrol Ofisi comprises the largest retail station network of over 1,700 service stations, the largest fuel storage and logistics business in Turkey with more than 1 million m3 of storage capacity. It is also Turkey's leading distributor of lubricants and the into wing supply of jet fuel at 20 airports.
Javed Ahmed, head of investments, Vitol and chairman of Petrol Ofisi, says: 'As long-term investors we see strong potential in the Turkish market. Petrol Ofisi has been the market leader serving Turkey's energy consumers for over 75 years.
'Vitol has a history of investing to grow businesses and this is a tremendous opportunity to refocus Petrol Ofisi for the future.'
A crude oil terminal in Oklahoma has been bought by USD Partners to facilitate rail-to-pipeline shipments of crude oil.
The terminal in Stroud, which was bought for $25 million, will enable the shipment of crude from USD's Hardisty terminal in western Canada to Cushing, Oklahoma.
USD has extended the term of take-or-pay terminalling services agreements related to 25% of the Hardisty terminal's available capacity by one year.
Along with this transaction, USD has entered into a new multi-year, take-or-pay terminalling services agreement with an investment grade rates, multi-national energy customer for the use of 50% of the Stroud's terminal's available capacity.
Dan Borgen, CEO, says: 'We are proud to announce the successful repositioning of an underutilised asset to create a competitive network solution for our new customer's growing oil sands production.
'Our Hardisty to Stroud rail solution delivers immediate takeaway capacity, preserves the integrity of our customer's heavy barrels and enables substantial end market optionality at Cushing with available pipeline capacity to the Gulf Coast.'
The Stroud terminal is located on 76 acres and includes 104 railcar spots, which can unload one unit train per day, two 70,000 barrel onsite storage tanks and one truck bay.
The terminal also includes a 12-inch diameter, 17-mile pipeline directly connected to the Cushing hub. USD also obtained a lease for 300,000 barrels of crude oil tank storage at the Cushing hub to receive outbound shipments of crude oil from the Stroud terminal.
Jim Albertson, vice president, commercial development – Canada, adds: 'This transaction reinforces the strategic positioning of our Hardisty asset and confirms our long-held view that rail will continue as an important component of midstream transportation infrastructure in western Canada.
Tallgrass Energy Partners plans to develop a crude oil storage terminal following an agreement with Saddle Butte Pipeline.
The facility will be situated in the heart of the Platteville, Colorado oil terminal complex and will interconnect with Saddle Butte's Denver-Julesburg Basin crude oil gathering system.
It is expected that the terminal will serve as a new pipeline origin for the Pony Express Platteville Extension. The extension is expected to have an ultimate takeaway capacity of at least 80,000 barrels of crude oil per day and is expected to be in service by the second quarter of 2018.
Tallgrass Terminals will wholly own and operate the new facility when it is completed. Consistent with the Pony Express Pipeline's current operations, the Tallgrass Grasslands Terminal will offer batching service for several common streams sourced from multiple gathering system interconnects.
Doug Johnson, vice president and general manager of Tallgrass Pony Express Pipeline, says: 'The proposed Platteville Extension and Tallgrass Grasslands Terminal, together with our existing Buckingham Terminal and Northeast Colorado Lateral, give Pony Express and Tallgrass Terminals an unrivalled footprint in the Denver-Julesburg area and provide meaningful benefits to producers.
'Via its direct connections to refineries and six final-destination terminals in Cushing, Pony Express provides customers a broad range of delivery options and improved netbacks versus other alternative transport options.'
Oiltanking's Karimun terminal has been approved by S&P Global Platts to be in its Singapore pricing process for gasoil, jet fuel and petrol cargos.
In a not to its subscribers, Platts says it will publish offers of oil product cargoes loading from the storage terminal in its pricing process from July 3.
It will publish seller's offers from Karimun on a free-on-board Indonesia basis, where the seller needs to state the loading point as FOB Karimun at the time of indicating their interest to Platts for publication.
Reuters reports that this will be the first Indonesian delivery point in Platts' Singapore price assessment process. Other loading points outside Singapore that Platts includes in its oil product assessments include Malaysia's Tanjung Langsat, Tanjung Bin, Pengerang and some floating storage units.
The company will not publish FOB Indonesia bids and sellers may not unilaterally nominate Karimun as a loading point for deals done under basis of FOB Straits, which includes the terminals located outside of Singapore.
Oiltanking has expanded its investment in the port of Bandar Imam Khomeini in Iran with an additional stake in a storage terminal.
The company has acquired an additional stake of the indirect ownership in Exir Chemical Terminal PJSCo from Odfjell. This increases Oiltankings indirect stake from 35% to a majority share of 70%.
Odfjell received $6 million from the transaction.
The terminal, a joint venture between Oiltanking Odfjell and private Iranian investors, was commissioned in January 2010.
It is strategically located in the petrochemical special economic zone of Bandar Imam Khomeini and is connected by pipelines to jetties of the zone at the Persian Gulf and comprises 18 tanks with a capacity of 22,000 m3.
Despite the sanctions that were placed against Iran, it has been in continuous operation in spite of the difficult market conditions.
In a statement Oiltanking says: 'Oiltanking considers the acquisition as a unique opportunity to build a majority stake in a state-of-the-art terminal.
'While last year's partial sanctions relief has not yet unlocked the country's full potential, the location of the terminal provides a significant opportunity for expansion to capitalise on expected market developments.'
Varo Energy will acquire all the shares in the United Fuel Group, with 22 retail service stations in the Netherlands and a wholesale and lubricants business.
This follows the acquisition of the Brand Oil and Amigo networks earlier in 2017, bringing Varo's retail footprint in the Netherlands to more than 140 retail service stations. At the same time the company has also strengthened its position in the wholesale market around its terminal network in the eastern part of the country.
United Feuls Group is the holding company of Diesel Oil Company and Private Label Oil Company.
Varo CEO Roger Brown says: 'With this transaction, we broaden our company's presence in the retail segment, in line with our strategy to grow as an integrated logistical service provider in North West Europe.
UFG directors Leon Derksen and Harald Kirkskothen add: 'In a changing market like ours we are very pleased with this transaction to maintain and expand the company's position. We believe that Varo will take the business of the company to the next level.'
The transaction is expected to close at the beginning of July 2017.
Discussions for the financing of a second fuel storage terminal in Cyprus are underway and progressing smoothly.
According to Cyprus News Agency representatives from the European Investment Bank (EIB) visited the country for a main evaluation mission in in early 2017. The talks are being held between the Cyprus Organisation for Storage and Management of Oil Stocks (KODAP) and the EIB.
KODAP president Panagiotis Malekos told the news agency that the process is expected to conclude in the coming months with a final loan approval.
The facility, which will be state-owned, is expected to cost more than $40 million. Construction is expected to start at the end of 2017 or early 2018.
Kinder Morgan has secured financing for the Trans Mountain Expansion Project following the completion of its IPO.
The company completed its IPO of 102,942,000 restricted voting shares of Kinder Morgan Canada Limited for C$17 per share, generating C$1.75 billion. The closing of the IPO removed the final condition to the company's investment approval for the project.
Steve Kean, Kinder Morgan CEO, says: 'We are excited to be moving forward on their tremendous project, which is expected to benefit Kinder Morgan and Kinder Morgan Canada Limited as well as our Trans Mountain shippers and Canada.
'The Kinder Morgan Canada Limited IPO is one of the largest ever in Canada and provided Canadian investors the opportunity to invest in a leading integrated midstream set of western Canadian assets.
'Our execution planning is complete, our approvals are in hand, and we are now ready to commence construction activities this fall generating thousands of direct jobs for Canadians.'
Once complete the project will offer an additional 590,000 barrels per day of shipping capacity and tidewater access to the western US and global markets.
Construction is expected to start in September, with completion expected in December 2019.
SABIC and ExxonMobil will conduct a detailed study of the proposed Gulf Coast Growth Ventures project for a petrochemical complex in Texas.
Both companies agreed to being planning for front-end engineering and design work.
A site in San Patricio County, Texas, was selected in April for the proposed petrochemical complex that would inclue an ethane steam cracker capable of producing 1.8 million tonnes of ethylene per year, a monoethylene glycol unit and two polyethylene units.
The project is one of 11 major chemical, refining, lubricant and LNG projects associated with ExxonMobil's growing the Gulf initiative in the US – made possible by the abundance of low-cost US natural gas.
Philippe Ducom, president, chairman and CEO of ExxonMobil Saudi Arabia, says: 'This agreement represents an important step in the progression of the Gulf Coast Growth Ventures project.
'We have a long and successful relationship with SABIC, which will be enhanced by this potential project that will create value for our companies and our communities.'
A fire at Anadarko Petroleum killed a maintenance worker and injured three others.
The incident, involving an oil tank battery, happened as crews performed maintenance on a collection of oil tanks at the facility near Mead, Colorado according to the Weld County Sheriff's Office.
When officers arrived on the scene the battery was fully engulfed in flames, which is being attributed as an industrial accident.
Three people working on the battery were transported to medical centres, two being treated for burns.
The Sheriff's Office, Mountain View Fire and Anadarko worked to ensure all the individuals working on the site were accounted for and another person working on the battery was discovered and was declared dead at the scene. The identity of the worker will be released by the Weld County Coroner's Office following their investigation.