SMEC Africa has been appointed by Ethiopian Petroleum Supply Enterprise to develop a white oil products storage terminal at Port Dukem in Ethiopia.
The terminal will be the first in the country to store and handle aviation fuel as well as refined petroleum and white products. It will comprise product storage tanks, tank truck and rail wagon receipt facilities and a tank truck loading gantry.
It will be one of the biggest in the country, with 240,000 m3 of storage capacity.
SMEC will provide the services at the terminal on an engineering, procurement, construction and management basis in two phases.
As of Monday, July 16 total oil product stocks in Fujairah stood at 20.111 million barrels. Total stocks rose by 6.3% week on week and topped the 20 million barrel level for only the second time this year.
Stocks of light distillates jumped by 19.9% week on week to 7.322 million barrels. Petrol markets are weak in Asia due to ample supply, but stronger in Europe due to tightness in the Mediterranean and cross-Atlantic pull from the US summer demand.
Demand in the Middle East seen as steady, and the region could see additional barrels from the East rather than the West. In tenders, Kuwait's KPC was seeking a total of 75,000 mt of RON 91 and RON 95 petrol for delivery between August and October. Spot premiums for Arab Gulf RON 95 gasoline rose to a seven-month high of $3.95/b yesterday.
Stocks of middle distillates rose by 3.2% week on week to 3.01 million barrels. The gasoil market remains soft in the East of Suez amidst weak demand and limited arbitrage pull. The front-month East-West Exchange of Futures for Swap was priced at minus $6.80/mt yesterday – which is above the levels of minus $10-15/mt needed to make gasoil arbitrage workable.
Similarly, cross-regional flows of jet fuel remained robust in recent weeks, but several sources noted that arbitrage activity from Asia and the Middle East to the ARA region has started to slow amid eroding economics and high clean tanker rates from the East to the West.
Stocks of heavy distillates and residues fell by 1.2% week on week to 9.779 million barrels. Stock levels fell back from the seven month high seen last week; the last time heavy stocks topped 10 million barrels was December 25, 2017. Bunker demand in Fujairah was reported as positive yesterday as prices tumbled in line with the sharp dip in crude prices. 'Demand did strengthen but it's very hard to price due to Brent falling,' a Fujairah-based bunker fuel trader said. Front-month time spreads for Arab Gulf 180 CST swaps strengthened to $6/mt yesterday on a continued tight outlook for the Singapore market.
Greenergy will acquire an idle biodiesel manufacturing facility located at Oiltanking's site in Amsterdam.
The acquisition of a third biodiesel plant will allow Greenergy to meet growing demand for waste-based biofuel in the UK and Europe.
The biodiesel manufacturing facility was built in 2010 to process vegetable oils but was never commissioned. Greenergy plans to carry out works over the next year to convert the facility to process waste oils rather than vegetable oils and then add further production capacity.
Greenergy is Europes largest manufacturer of biodiesel from waste and it owns two major facilities on the east cost of England in Immingham and Teesside.
The location in Amsterdam benefits from deep-water access, allowing for break bulk on long-haul shipments of waste oils.
Under a long0term agreement, Oiltanking will provide Greenergy with storage facilities for raw materials and finished biodiesels, as well as a range of support services.
Andrew Owns, Greenergy chief executive, says: 'Demand for waste-based biodiesel is rising rapidly in the UK and Europe as a result of higher obligated biofuel inclusion rates. Over the last few years we have scaled up our raw material supply chains and invested in our UK manufacturing facilities, increasing output through a variety of incremental investments.
'We are now leveraging these skills and capabilities to develop a third plant.'
Jan Willem van Velzen, MD for Oiltanking Amsterdam, says: 'Oiltanking will also be investing into its own infrastructure in order to accommodate Greenergy's logistical needs.'
Vopak has signed an agreement to acquire a 29% share in Elengy Terminal Pakistan (ETPL) from Engro Corporation.
ETPL's wholly owned subsidiary, Engro Elengy Terminal owns an LNG facility, which is located in Port Qasim in Pakistan, adjacent to the Engro Vopak chemical terminal on the mainland side of the channel into Port Qasim. The facility has been in operation since 2015 and is the first LNG import facility in Pakistan.
It comprises an LNG jetty including a 7.5 km high pressure gas pipeline. This pipeline is connected to the grid of Engro Elenergy Terminal's sole customer Sui Southern Gas Company, a Pakistan government owned entity.
The liquified gas is supplied, under long-term contracts, via LNG carriers from various exporting countries to the FSRU, which is moored to the terminal and connected to its pipeline. The regasification takes place on the FSRU and the gas is transferred to the mainland where, under high pressure, it enters the grid of the customer.
Pakistan has a growing energy demand in which the share of gas is expected to increase. It is mainly used for power supply for its growing population, industrial usage and as feedstock for fertilisers.
Once the transaction is complete, the shareholders in the terminal will be Engro Corporation, Vopak and the International Finance Corporation.
Ghias Khan, Engro Corporation president and CEO, says: 'We are excited to enter into this mutually beneficial partnership with Vopak, which will allow Vopak to realise their strategy of entering the Pakistan energy market and will pave the way for Engro and Vopak to collaborate in further ventures at home and abroad using their combined resources and expertise.'
Chairman of the executive board and CEO of Vopak Eelco Hoekstra adds: 'This new step in our cooperation gives Vopak an excellent entry into the growing Pakistan LNG market. This fits very well with our ambition to grow and diversify our service offering in LNG.'
Kenya Pipeline Company has finished building four oil storage tanks at its Nairobi Terminal.
According to local media reports, the four additional tanks, at a cost of SH 5.3 billion, will provide sufficient capacity for receipt of higher volumes of diesel and super petrol products following the recent completion of the new Mombasa-Nairobi pipeline.
The tanks, with a capacity of 133 million litres of fuel, have more than doubled the storage capacity of diesel and super petrol from the current 100 million litres.
KPC's manging director Joe Sang, says: 'Besides guaranteeing security of supply of petroleum products, the new tanks will also enhance operational flexibility and increase tank turnaround at Kipevu resulting in more ullage creation at KOSF and reduction of demurrage charges.'
The new tanks and the new pipeline will adequately serve Kenya and the region's petroleum demand, which is projected to be 11.4 billion litres in 2020.
A five million tonne LNG import terminal is due to be commissioned in the next three months by Gujarat State Petroleum.
The import terminal in Mundra, Gujarat, will be the third import terminal in Gujarat to import LNG in cryogenic ships and then re-converting the liquid fuel into its gaseous state before transporting it by pipeline to customers.
According to the Economic Times, managing director Jagdip Narayan Singh says: 'We will commission Mundra terminal by August-end or mid-September. It will operate at 1.5 million tonnes a year capacity for the first one-and-a-half years before scaling up to full capacity.'
The terminal, which can expand capacity to 10 million tonnes per annum, is designed to have a berth for receiving LNG tankers, two 1.6 million m3 LNG storage tanks as well as facilities for regasification and gas evacuation.
SGR Energy plans to buy Swiss Terminal Barranquilla – a refined and crude oil storage terminal - from Fondo De Infraestructura Columbia.
The 210,000-barrel facility in Atlántico Department, Colombia covers 294 acres and comprises a warehouse, lab and office, which will provide 50,000 barrels per day of product unloading capacity, 20,000 barrels per day product loading capacity and 13 lane truck racks.
Houston-based SGR Energy will hold permitted storage of up to 210,00 barrels for third party merchant storage, allowing for the acceptance of crude oil and naphtha, with 13 multipurpose temperature-controlled tanks, offering the ability to segregate crude and clean products.
The terminal will also process crude oil and blend fuel oil, with up to seven million barrels of petroleum products transferred or processed through the facility a year.
CEO Tommy San Miguel, SGR Energy, says: ‘We are delighted to acquire from Ashmore Management Company this premier marine transportation and terminal in Colombia. Swiss Terminal Barranquilla gives SGR Energy a strategic artery to pull supply from Colombia, increase our delivery volume to established customers, and will allow us to develop additional business.’
Enterprise Products Partners plans to build an offshore crude oil export terminal off the Texas Gulf Coast.
The terminal would be capable of fully loading VLCCs, which have capacities of two million barrels and provide the most efficient and cost-effective solution to export crude oil to the largest international markets in Asia and Europe.
The company has started front-end engineering and design and preparing applications for regulatory permitting. Based on initial designs, the project could include 80 miles of 42-inch diameter pipeline to an offshore terminal capable of loading and exporting crude oil at 85,000 barrels per hour.
A.J. 'Jim' Teague, CEO of Enterprise's general partner: 'On the heels of our second successful loading of a VLCC at the Texas City terminal, we are now planning to expand our capabilities to load crude oil faster and more cost efficiently without the need for lightering vessels.
''Given the long-term outlook for growing supplies of US crude oil production, increasing global demand requiring super tankers, and the future limitations of Gulf Coast port and lightering capacities, we are confident this project will be embraced and supported by both domestic and international customers.
'Capital and infrastructure to support our project would be solely provided by private capital and would not be reliant nor contingent upon state or federal government agency financial support or infrastructure development. We believe this would enable us to deliver this project in a timely manner once permits are granted and the project is underwritten.'
The world’s leading publication Tank Storage Magazine has strengthened its partnership with the world’s leading terminal database provider TankTerminals.com.
Tank Storage Magazine is the leading publication in the storage sector, and has been for over 15 years, providing daily news, regional market analysis, exclusive terminal interviews, information on the latest innovations, M&As, terminals being expanded and much more. It recently launched a brand new website (www.tankstorageintelligence.com) to provide all the key information regarding the storage sector altogether in one place.
TankTerminals.com has been the leading tank storage database provider for more than 10 years. It recently launched a brand new website (www.tankterminals.live) and database platform, which includes in-depth information of 4,800 terminals around the globe, terminal benchmarks, market share analysis and other database tools.
As per the agreement, Tank Storage Magazine will be selling online advertising space on www.tankterminals.live as well as on www.tankstoragemag.com. Between them, the two websites attract over 14,000 unique visitors per month. In addition, Tank Storage Magazine will be selling online banners on both Tank Storage Magazine & TankTerminals.com newsletters – both of which are fully GDPR compliant and are each sent out to 13,000 contacts per week.
This agreement strengthens the existing relationship between Tank Storage Magazine & TankTerminals.com. For the past 7 years Tank Storage Magazine has produced the Tank Terminal Map, based on data provided by TankTerminals.com. The map lists the location, terminal capacity and number of products stored at 1,500 terminals around the globe. The map is free to all subscribers of Tank Storage Magazine.
For more information visit www.tankstoragemag.com and www.tankterminals.live or to book online advertising, advertising on the Tank Terminal Map or print advertising in Tank Storage Magazine contact David Kelly, International Advertising Sales Manager, David@tankstoragemag.com
About Tank Storage Magazine
Tank Storage magazine has been the market leading publication dedicated to the tank storage sector for over 15 years.
It is printed seven times a year. Every issue includes exclusive interviews with terminal operators, regional market analysis, a list of terminals that are being built/expanded around the globe and a selection of articles on ways to make terminals safer and more efficient.
The magazine is the only publication in the sector to be independently audited. Over 40,000 copies are printed and distributed each year, both via postal distribution and at 30+ storage-related events worldwide.
Tank Storage Intelligence allows users to search a back catalogue of Tank Storage Magazine for the past 15 years, see conference presentations from StocExpo Europe and Tank Storage Asia, provides information on changes to regulations and available storage capacity worldwide, includes a comprehensive directory of terminal equipment suppliers, available jobs and a detailed overview of event listings across the globe.
Tank Storage Magazine also runs the Tank Storage Awards, a sell-out event, being held for the third time on 26th March 2019 in Rotterdam. The Tank Storage Awards rewards those that excel in a range of different categories relating to terminal achievements, equipment innovations, ports and individual success. Previous winners have included Saudi Aramco Terminals, Vopak Terminal Savannah and ATT Tanjung Bin Terminal in Malaysia. The winners are chosen by an independent panel of judges including representatives from Shell, BP, Oiltanking, VTTI, InterTerminals, LBC, Vopak and Koole.
Tank Storage Magazine is owned by Easyfairs, one of the world’s leading event organisers. As such it is able to make use of Easyfairs’ database of 80,000 contacts within the tank terminal sector.
Easyfairs organises 218 events in 17 countries, including StocExpo Europe and Tank Storage Asia and employs more than 750 people worldwide.
For more information, visit our website www.easyfairs.com
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San Diego-based energy company Sempra Energy has announced that its Mexican subsidiary - Infraestructura Energética Nova (IEnova) - has secured a $150 million (€128 million) contract for liquid fuels project from the Topolobampo Port Administration in Mexico.
Per the terms of the agreement, IEnova will construct and operate a marine liquid fuels terminalin Sinaloa, Mexico.
This latest project will operate as a receipt, storage and send-out terminal.
Per the deal, IEnova will conduct the entire development process of this terminal that includes obtaining customer contracts and permits, engineering, procurement and construction as well as providing financing services. It will also supervise the work related to operations and maintenance.
On completion, the first phase of the Topolobampo terminal will have a capacity to store 1 million barrels of petrol and diesel. IEnova expects to commence operations at the terminal in the fourth quarter of 2020.
Spanish oil transportation and storage operator CLH plans to acquire 60% of Mexican company HST. Following the acquisition, CLH intends to construct and operate a new facility for the storage of oil products located in the metropolitan area of the Valle de México.
The new facility will launch its operations in 2020 with a capacity of almost 100,000 m3 and is strategically positioned with excellent connections to the oil pipeline system, railways and motorways in one of the areas with the highest level of consumption of oil products in all of Mexico.
The President of the CLH Group, José Luis López de Silanes, says: 'This operation constitutes a new step forward in the company’s process of internationalisation and one which enables us to continue to move forward in the American continent, following the contract secured last year in Panama for the supply of fuel to five airports in that country.'
CLH's CEO, Jorge Lanza, adds that the 'highly complementary nature of the skills shared by CLH and HST, combining the international experience that CLH has in operating pipelines and storage terminals in Europe – involving almost 10 million m3 – together with the important preparation that the HST team can contribute to the development of projects in Mexico.'
With this new project, the CLH Group launches its fifth international operation, following the projects that are already underway in the UK, Ireland, Oman and Panama. The emerging opportunities for the development of infrastructure in Mexico are strengthened by the liberalisation process of the energy sector and the growing level of consumption that the country is experiencing.
Stolthaven Terminals is experiencing gradual improvements in its performance despite reporting a decline in its operating profit.
In its second quarter financials, it reported an operating profit of $20.2 million, down from $25.9 million in the first quarter, however it reported a second-quarter revenue of $63.9 million compared to $62.5 million in the first quarter.
Equity income from the company's joint venture terminals decreased by $7.1 million in the second quarter, mainly reflecting the $8.2 million of additional first-quarter equity income resulting from a reduction of deferred tax liabilities at the company's joint venture terminal in Antwerp.
Storage and throughput revenue was essentially unchanged in the second quarter and utilisation increased slightly thanks to improvements in Houston, New Orleans and Singapore, and stable overall demand for chemicals worldwide.
Niels G. Stolt-Neilsen, CEO of Stolt-Nielsen, says: 'Our outlook remains fundamentally unchanged. At Stolthaven Terminals, gradual improvements in performance are expected to continue, driven by higher utilisation and operational enhancements.'
Kinder Morgan Texas Pipeline, EagleClaw Midstream Ventures and Apache Corporation plan to develop the Permian Highway Pipeline Project for the region's growing natural gas production.
The consortium of companies have signed a letter of intent for the project which will provide an outlet for increased natural gas production for the Permian Basin to growing market areas along the Texas Gulf Coast.
The $2 billion project is designed to transport up to 2 billion cubic feet per day of natural gas through 430 miles of 42-inch pipeline from the Waha, Texas area to the US Gulf Coast and Mexico markets.
The project is expected to be in service in late 2020. Natural gas supply will be sourced into the project from multiple locations, including KMI's, EagleClaw's and Apache's existing systems in the Permian Basin, with additional interconnections to both intrastate and interstate pipeline systems in the Waha area.
Kinder Morgan and EagleClaw will be the initial partners, with 50% ownership each, and Apache will have an option to acquire up to 33% equity in the project from the initial partners.
Apache and EagleClaw will be significant shippers on the proposed pipeline, with Apache planning to commit up to 500,000 dekatherms per day. Kinder Morgan will build and operate the pipeline.
Sital Mody, CCO of Kinder Morgan Natural Gas Midstream, says: 'The project is structured to provide unrivalled market optionality for Permian producers.
'By contracting for space on KMI's extensive intrastate systems, the project will offer seamless nominations to the Katy and Agua Dulce market hubs, pipeline headers into LNG export facilities on the Texas Gulf Coast, multiple pipelines delivering gas into Mexico, including Valley Crossing, NET Mexico, and KMI's Border and Monterrey pipelines, and numerous other intrastate and interstate pipelines.
Rangeland Energy III has started operations at its South Texas Energy Products System terminal facility in Corpus Christi, Texas.
The facility is an integrated hydrocarbon logistics system that receives and stores refined products, LPG and other hydrocarbons. It then transports them to terminal primarily located in Mexico. During the initial phase of the project, refined products and LPGs will be received in the Corpus Christi terminal and then shipped to third-party inland terminals located in Mexico.
Rangeland president and CEO Christopher Keene says: 'Rangeland is looking forward to facilitating the transportation of diesel to destinations in Mexico for a major industry plater. This is the first customer to contract with us for service at the STEPS facility. As we continue to build out the STEPS project, we are working with other key marketers, refiners and producers to provide services into and out of STEPS.'
South East Asia's bulk liquid storage market is expected to expand at a CAGR of 8.22% until 2024 as the region continues to be a key market despite previously turbulent market conditions in the oil and gas industry globally. Singapore in particular has seen record bunker fuel sales of 50.6 million tons in the last year and remains Asia's top petrochemical hub.
Singapore will host industry leaders at Tank Storage Asia, as the exhibition and conference returns to the Marina Bay Sands on the 26th & 27th September, following last year's successful event.
Tank Storage Asia is the only dedicated exhibition and conference in the region for the bulk liquid storage industry. It brings together the entire supply chain, from terminal suppliers and manufacturers through to tank storage operators, terminal owners, traders and analysts.
The event is supported and attended by major terminals across the region, including Stolthaven Terminals, Vopak, Oiltanking, VTTI and Horizon Terminals. Also supporting the event is the Singapore Manufacturing Federation, the Independent Power Producers' Forum, RVB Tank Storage Solutions and the Corrosion Association Singapore.
Mark Lim, Assistant Commercial Manager at Stolthaven Singapore, comments: "The show is an excellent platform for networking, getting to know new suppliers and learning about updates within the industry. We're very much looking forward to attending this year and supporting the event once again."
Attendees will have the opportunity to visit the exhibition where more than 80 local and international suppliers will showcase the latest equipment and state-of-the-art technologies. Exhibitors will include CTS Far East, Endress + Hauser, Kanon Loading Equipment, Krohne, OPW Engineered Systems, Concrete Canvas, BIOex, Larco, Protego, Emerson Automation Solutions and Emco Wheaton to name just a few. These span the entire supply chain, from tank design, construction and maintenance, through to innovations in metering and measuring, pumps and valves, automation and loading equipment, and inspection and certification services.
The exhibition will also include a dedicated Singapore Pavilion and Technology Start-Up Zone where local companies will be exhibiting, with financial backing from the Singapore Manufacturing Federation and iMAP funding initiative.
To register to attend, view the exhibitor line up and sign up for show news and information, please visit: www.tankstorageasia.com.
Owners of an idled oil refinery in St. Croix, U.S. Virgin Islands, that was once among the world’s largest, plan to invest $1.4 billion to refurbish and restart a portion of the plant.
ArcLight Capital Partners, a private equity firm expects the former Hovensa refinery on St. Croix to be able to process 200,000 barrels per day of crude and deliver fuels to market by January 2020, officials said at a news conference on the island.
The Boston-based company spent two years studying the market and developed ‘a refinery profile we see thriving in the current marketplace,’ said John Erhard, an ArcLight partner.
It aims to produce fuels that meet an IMO mandate calling for large vessels to switch by 2020 to fuels containing no more than 0.5% suphur from 3.5%.
If the renamed Limetree Bay refinery can be refurbished to produce the fuels in the next 18 months, it could benefit from expected lower prices for heavy crude and strong demand for its fuels, said analysts.
‘If you have the ability to make compliant bunker fuel, you can make a lot of money,’ said John Auers, executive vice president at consultancy Turner, Mason & Co.
Mark Broadbent, principal research analyst at Wood Mackenzie, also said demand for IMO 2020 fuels should favor Limetree Bay, but it is unclear whether ArcLight can restore operations within its budget and by 2020.
‘Getting an idled refinery up and running could be very expensive,’ he said.
In the 1970s, the refinery on St. Croix was able to process 650,000 bpd. It halted processing in 2012, filed for bankruptcy three years later and was sold to ArcLight and trading firm Freepoint Commodities.
The two companies run Limetree Bay Terminals, a 25 million barrel oil storage and marine terminal on the site.
As part of its agreement with the USVI government, Limetree has purchased 225 acres of land and more than 100 homes surrounding the refinery to facilitate the restart, U.S. Virgin Islands Governor Kenneth Mapp said in an interview.
‘They’ve already begun spending money,’ Mapp said. ‘Assets and resources are already on their way.’
Reopening the refinery will be a boon to the U.S. Virgin Islands, which has struggled economically since Hovensa closed in 2012.
The government will collect $600 million in revenue from the refinery over its first 10 years in operation, Mapp said.
Restarting the facility also will bring 1,000 construction jobs and 700 permanent jobs to the site, in addition to the 750 workers at Limetree’s nearby oil terminal site, he said.
Officials did not discuss BP’s potential involvement in the refinery restart, but two sources familiar with the matter said the British oil company is in negotiations to supply crude to the plant.
The deal under discussion would be similar to a supply and marketing arrangement BP struck with NARL Refining for the 115,000-bpd Come by Chance refinery in Newfoundland, one of the sources said. That deal soured over two years ago.
ArcLight and Freepoint officials were unavailable for comment. BP spokesman Mike Abendhoff declined to comment on its potential role.
Norwegian-based terminal operator Odfjell has entered into an agreement with Dutch terminal operator Koole. Odfjell will sell its 100% ownership in Odfjell BV subsidiaries’ Odfjell Terminals Rotterdam (OTR) and Odfjell Terminals Maritiem (OTM) for a price of $155 million.
The transaction is expected to reduce the net debt of Odfjell Terminals BV (OTBV) by around $35 million.
‘This is a landmark transaction for us,’ says Kristian Mørch, CEO of Odfjell. ‘We have been working hard to restore profitability at OTR during the past years, and the terminal is now ready for the next step of development, which will require significant investments.
‘We are therefore pleased to have Koole as the potential purchaser. Koole has great ambitions for the terminal, and we are confident in their ability to realise the value potential this business represents. Following a sale of OTR, Odfjell will have a network of seven tank terminals worldwide. We remain committed to our tank terminals business and will allocate capital for growth of Odfjell Terminals in the years to come.’
Frank Erkelens, CEO of Odfjell Terminals adds: ‘OTR is well positioned to continue with building a successful future on the fundaments of its strategic location in the Port of Rotterdam, its unique capabilities, its top quartile safety performance and its strong organisation. On behalf of Odfjell Terminals, I pay tribute to all the stakeholders of OTR for their continuous support. Odfjell Terminals remains focused on providing best in class safety and service performance to our respected customers across our terminal network.’
Oil Deposit Corunna has entered into a storage agreement for crude oil and petroleum products with a top 10 oil major.
The terminal comprises 350,000 m3 of capacity for all class crude oil and petroleum products in addition to a 400 meter long and 25 meter draft jetty at the Coruna Port in north west Atlantic Spain.
The oil major, which has upstream operations in the North and Barents Seas, will benefit from the innovative short sailing and ECA free Irish sea route, the true VLCC plus jetty and the logistic position advantage to launch cargos to Asia, ODC says in a statement.
Other storage agreement negotiations are in place, including governmental strategic reserves bodies. Construction of the terminal is due to start as soon as permitting is completed, which is currently in its final stages.
Oil product stocks at the Middle East's key oil hub of Fujairah rose 3.6% in the week to Monday, June 25, rebounding from a five-week low, as light, middle and heavy distillates all saw builds. Total oil stocks were 18.339 million barrels, up 645,000 barrels from a week earlier, according to the Fujairah Energy Data Committee. The biggest increase was in light distillates, which rose 7.9% to 6.533 million barrels.
'Activity in the Middle East petrol market has begun to pick up after the end of the Eid holiday season,' S&P Global Platts Analytics said in a report Wednesday. The Mediterranean petrol market was seen as mostly balanced, the report stated, supported in part by buying interest from India and the Middle East, 'depending on which arb is cheaper,' according to a trading source.
Premiums for Arab Gulf RON 95 petrol rose to a near six-month high of $3.70/b. Middle distillate stocks rose 5.2% on the week to 2.887 million barrels. First/second month Singapore gasoil swaps went into contango Tuesday on mounting supplies in Asia and weak sentiment. In Europe, imports from the US Gulf Coast are making up for low gasoil stocks. 'This limits the arbitrage opportunities from the East of Suez, leaving excess barrels within the region,' Platts Analytics said.
Kuwait's KPC has been a recent active seller in the 0.05% sulfur gasoil market. Heavy distillate and residue stocks rose 0.2% on the week to 8.919 million barrels.
Platts Analytics said it expects regional demand for fuel oil to remain elevated through the summer due to demand for power generation. But price volatility hit the market in the wake of last week's OPEC meeting.
ExxonMobil and Plans All American Pipeline plan to form a joint venture to build a pipeline to transport crude oil and condensate.
The pipeline will transport volumes from multiple locations in the Permian basin to the Texas Gulf Coast.
The common carrier pipeline would be designed to ship more than one million barrels of crude oil and condensate per day, providing a safe, efficient and cost-effective option to transport ExxonMobil and other third-party production to market destinations in Texas.
The pipeline would originate in both Wink and Midland, Texas with delivery points in Webster, Baytown and Beaumont, Texas.