Buckeye Partners has completed the sale of a package of domestic pipeline and storage terminal assets to a subsidiary of InstarAGF Asset Management for $450 million.
The assets include: a jet fuel pipeline from Port Everglades, Florida to the Ft. Lauderdale and Miami, Florida airports; pipelines and terminal facilities serving the Reno, Nevada; San Diego, California and Memphis, Tennessee airports; and refined petroleum products terminals in Sacramento and Stockton, California.
Buckeye Development & Logistics, a subsidiary of Buckeye, will continue to operate and maintain these assets for the buyer under a long-term contract.
Puma Energy has commenced operations at its new bitumen storage terminal at Kwinana, Western Australia.
The new state-of-the-art facility has the capability to deliver multiple grades of bitumen to the Western Australian roading industry.
The facility comprises a joint venture import facility with three 6.3 kt storage tanks and a main import wharf line from Kwinana bulk jetty. Additionally, Puma Bitumen operates four day tanks, which draw off the storage tanks and then, in turn, deliver product to the load-out gantry.
The automated two-bay gantry allows drivers to self-load 24/7.
Stuart Dack, bitumen market and technology at Puma Energy, says that for many years the supply of bitumen has been through the local BP refinery, which operated since 1955. However, following BP's decision to cease refinery production of bitumen in 2016, the need for a reliable, alternative supply arrangement was paramount.
Dack says: 'This new facility further demonstrates our ongoing commitment to provide secure supply of high-quality bitumen across Australia.'
Kinder Morgan has secured long-term committed volumes of 20,000 barrels per day on its Roanoke expansion projects on the Plantation Pipeline System following a successful open season.
The Plantation Pipe Line Company's investment in the project is $49 million. In addition, Kinder Morgan Southeast Terminal's investment, fully backed by 10,000 barrels per day of long-term committed volumes is $9 million.
With the successful open season, Plantation Pipe Line will submit the petition for declaratory order to the Federal Energy Regulatory Commission for approval of commercial terms for the project. Pending all regulatory approvals, the project is expected to be in full service by April 1, 2020.
James Holland, president, Kinder Morgan Products Pipelines, says: 'We are pleased with the successful Plantation Pipe Line open season and the opportunity to invest expansion capital to serve the Roanoke area's needs with reliable transportation and storage services in projects that meet our investment criteria.'
The expansion will provide 21,000 barrels per day of incremental refined petroleum products capacity on the Plantation from the Baton Rouge, Louisiana and Collins, Mississippi, origin points to the Roanoke, Virginia area. The expansion will primarily consist of additional pump capacity and operational storage on the Plantation system.
The Kinder Morgan Southeast Terminal expansion will provide 10,000 barrel per day of incremental refined product throughput capacity at the terminals.
Phillips 66 has increased its spending on its midstream business, including pipelines and terminals to $1.6 billion.
The budget includes $601 million for Phillips 66 Partners and reflects expected joint venture-level financing to fund a portion of the Gray Oak Pipeline construction.
Midstream growth capital at the company includes 300,000 barrels per day of additional fractionation at the Sweeny Hub, as well as ongoing expansion of the Beaumont Terminal and pipeline investments providing integration across its value chain.
Growth capital at Phillips 66 Partners supports organic projects, including the Gray Oak Pipeline, South Texas Gateway Terminal, Clemens Caverns expansion, an isomerisation unit at the Phillips 66 Lake Charles Refinery and the Lake Charles products pipeline.
Greg Garland, chairman and CEO, says: 'The 2019 capital programme reflects our strong portfolio of growth projects aligned with our long-term strategy. We are building out our integrated midstream infrastructure network, including pipelines, export facilities, and fractionation in support of growing hydrocarbon production in the key domestic shale plays. CPChem is also pursuing petrochemicals expansion opportunities on the US Gulf Coast.'
Newly formed midstream company Cavalcade Midstream has secured a $150 million partnership with Peal Energy Investments, Old Ironsides Energy and NGP.
Led by three founding partners, Rich Reynolds, Hunter Thunell and Ross Dillion, all of whom previously worked together at NuStar Energy, Cavalcade is focused on providing tailored midstream solutions through greenfield development and strategic M&A, initially in the Permian Basin.
CEO Reynolds says: 'We are honoured to partner with Pearl, Old Ironsides and NGP, three pre-eminent investment firms in the energy business. The Cavalcade team has a long and successful history working together and we are confident that our experience, coupled with our strong financial sponsors, will enable us to create value, providing creative, flexible, and reliable midstream solutions for our customers.'
'We welcome Cavalcade's creative and innovative approach to the midstream business and look forward to supporting this highly talented team as they execute their strategy,' adds Sean O'Neill, co-founder and managing partner of Old Ironsides.
StocExpo Europe, the world's leading international event for the tank terminal industry, will be celebrating its 15th anniversary when it returns to the Ahoy in Rotterdam on March 26-28, 2019.
The event is set to be bigger and stronger than ever with the return of several popular initiatives, including the Innovation Theatre, its CPD-certified conference as well as key terminals such as Stolthaven Terminals, Inter Terminals and Oiltanking among the list of over 200 exhibitors.
The three-day exhibition and conference is renowned for attracting the largest global representation of industry professionals due to its strategic positioning within the ARA region. Thousands of professionals, experts and analysts from leading oil majors, terminals and key storage players from over 70 countries worldwide will attend to maximise business opportunities, networking and knowledge sharing opportunities.
Many exhibitors, including Endress+Hauser, Emerson, CEA Systems, J de Jonge, Matrix Applied Technologies, Verwater and CTS Group, will be using StocExpo Europe 2019 as the place to showcase their latest innovations, launch new technologies and products, or to make major announcements to a captive international audience. To help bring exhibitors and visitors together, the organisers are also running a special hosted buyer programme through which key industry players will be brought to StocExpo Europe.
For the very first time, the highly-anticipated CPD-certified conference programme will be hosted on the show floor, allowing even greater access to in-depth sessions and debates delivered by over 30 industry speakers. CEOs, terminal managers and analysts from companies such as Shell, Alpha Terminals, Vesta Terminals Antwerp and Flushing and Port of Rotterdam are already lined up to speak at the conference.
Mark Rimmer, StocExpo & Tank Storage Portfolio divisional director, says: 'StocExpo is the biggest international event for the tank terminal industry; a place where the most innovative minds can come together to discuss this highly dynamic market. Over the last two years, Europe's share of global energy demand has continued to rise. This is pushing developments in new technology, materials and automation equipment and we expect all that innovation to be on the show floor.'
The Innovation Theatre, which is also on the show floor, provides free content to all visitors. Led by industry associations and specialist innovation platforms, EEMUA, iTanks and VDMA, visitors can take part in round table sessions and presentations to develop best practice, keep abreast of industry standards and regulations to ensure a competent workforce within their businesses.
Along with daily exhibitor networking events and seminars, attendees can register to attend the prestigious Global Tank Storage Awards. Designed to highlight those that excel in a range of different categories relating to terminal achievements, equipment innovations, ports and individual success, the awards are also one of many informal networking opportunities at the event.
For more information visit www.stocexpo.com.
TankTerminals.com has signed an agreement with a software solutions company to integrate its vessel clearence guide software into TankTerminals.com's database platform.
The agreement with Hobbit Imaging Solutions and its software www.vesselclearance.com results in a combined platform where customers can find all relevant terminal information. Besides general terminal information and storage availability, terminal customers can now automatically complete a vessel clearance request. This partnership will help tank terminals to become the number one platform for terminal information and help terminals and its customers to work more efficiently.
A customer's decision to discharge a vessel at a terminal, depends on whether the vessel is able to perform the requested manipulation (i.e. load/discharge) at a terminal. Therefore vessels go through a vetting process each time they could be nominated, this is called a vessel clearance request. For traders, the swiftness in receiving vetting feedback impacts the decision to make or leave a deal. By automating the vessel clearance process the clearance results are direct available, efficiency is increased, and mistakes are excluded.
Mabanaft has announced a strategic expansion plan at Oikos' storage terminal in the UK to meet growing customer demand and strengthen its position in the country's jet fuel market.
The plan includes a commitment to long-term storage and the construction of a new road loading rack for Mabanaft's exclusive use. It is the first independent road loading distribution project, dedicated to aviation fuel, to take place on the Thames in over 10 years.
Demand for jet fuel continues to rise, and the south east of England represents 75% of the UK's entire jet fuel market and government plans to increase aviation capacity in this region will ensure that volumes continue to grow over the coming years.
The Oikos terminal on Canvey Island has been in continuous use since 1936 and has seen significant infrastructure upgrades over the past five years under the ownership of Challenger Life Company. This includes the refurbishment of all 285,000 m3 of capacity and the rebuilding of jetty 2.
The new deep-water jetty, with 14.5 meters draft, will be capable of accommodating larger international product tankers – LR2 up to 120,000 mts deadweight. The facility is also a unique ingress point for both UKOP and CLH-PS pipelines, providing access to airports in south east England.
Martin Cook, Mabanaft's joint MD, says: 'The Thames is key to supplying the south east of England; so when the opportunity to take a jet position at Oikos came up, we knew it was the right thing to do. Committing to Oikos with a new state of the art truck loading rack, as well as the traditional pipeline links, ensures that Mabanaft will have sole access to a resilient new UK supply route and be able to supply jet fuel to airlines for many years to come.'
USD Partners has entered into a three-year agreement at its Casper Terminal, which involves the construction of an outbound pipeline and new storage tank.
The agreement with a new multi-national, investment grade customer, contains take-o0r-pay terms for terminalling and storage services, as well as fees associated with actual throughput volumes and other services.
The outbound pipeline connection from Casper Terminal will complement its current inbound pipeline connection ot the Express Pipeline and an additional storage tank to facilitate blending and staging operations for the customer. The customer will utlise an existing tank at the terminal for a three-year term and a second tank, once constructed or available, for another three-year term. The construction of the second tank, if needed, is expected to be completed in the second half of 2019.
Randy Balhorn, US development group’s vice president of business development, says: ‘We have mentioned our hub strategy at Casper on previous public earnings calls, and this is the first step in realising that vision. The outbound pipeline connection and additional storage capacity at Casper will contribute to the long-term sustainability of the terminal, giving our customers increased connectivity to various refining centres and pipeline networks.’
Adam Altsuler, the partnership’s chief financial officer adds that the company plans to spend $16 million on the new pipeline connection and storage tank capacity.
Hifa Petrol, a fuel products distributor in Bosnia and Herzegovina, has acquired a liquid storage terminal in Ševarlija, near Doboj.
This acquisition brings the number of terminals that the company owns to five, with the others located in Bukvi near Tešnja, Gruda, Mostar and Vogošći.
The facility comprises a gas terminal with a capacity of 2.5 million litres and an oil terminal with a capacity of one million litres. Both terminals have access to the access road truck. This brings the total storage capacity for Hifa Petrol for oil and petroleum products to 12,600,00 litres. The terminal near Doboj provides stability of supply for oil and oil derivatives.
The facility has state-of-the-art technologies with fire protection in accordance with EU standards. The terminal is fully automated, and the entire process is digitalised, including truck weighing, tapping and weighing.
The company says in a statement that this acquisition makes it one of the most successful oil companies in Bosnia and Herzegovina and that it will continue top provide safe and stable deliveries of petroleum and petroleum products.
Vopak is piloting the use of drones and robots at its Singapore terminal as part of a package of eight global digital projects.
The company is using drones and robots to achieve safer inspections and it is also trialling a digital vessel clearance tool for faster, better and safer clearance process.
Tan Soo Koong, managing director of Vopak Terminals Singapore, says: 'With support from the Singapore Economic Development Board, we have embarked on a digital and innovative transformation journey to make smart terminals a reality.
'In the period 2017-2019 Vopak is investing €100 million in technology, IT and innovation, and a part of it is used to power four of our eight global digital projects in Singapore, driving the company's competitiveness in serving the industry safely and opening up new opportunities for our people.'
The new initiatives tested include drone inspection, jetty inspection using an underwater remote operated vehicle, digital vessel clearance tool and robots for in-service tank inspection.
These initiatives will drive the digital transformation of the industry, leveraging on technology such as IIoT, big data analytics, sensoring, mobile device and robotics to create a safer, sustainable and more productive workplace.
The use of robots for in-service tank inspection avoids sending staff into confined spaces, minimise the exposure of personnel to potentially hazardous conditions, reduce downtime and waste water generation, and save resources. Additionally, the robots can already be used to inspect jetties and pipelines, while drones are being tested for the internal inspection of tanks.
The company's digital vessel clearance tool allows operator to tap on internal data-driven platforms to automatically clear vessels in just four clicks and can provide customers with the latest information on when the terminal can accommodate incoming vessels. This tool is now available at all of its four terminals in Singapore.
Khalil A. Bakar, deputy director, energy and resources at the Singapore Economic Development Board, says: 'Such investments will help catalyse the digital transformation of our energy & chemicals industry and strengthen the competitiveness of our local ecosystem.'
Earlier this year, Vopak tested the use of innovative sensors to monitor the health of product pumps and rolled out the use of ATEX proof mobile devices at the terminals to improve work processes at the terminal and become predictive.
As of Monday, December 10 total oil product stocks in Fujairah stood at 17.739 million barrels – down by 3.2% week on week.
Stocks of light distillates fell by 2.7% week on week to 9.733 million barrels. Stock levels are at elevated levels – up by 33% from the year to date average and by 114% compared to a year ago. Gasoline markets remains in the doldrums globally. Sentiment in the East of Suez gasoline market remained sluggish at the start of the week as concerns over regional oversupply persisted. 'I can't see any supportive factors this winter. Fundamentals and cracks are still weak. The situation is still the same [bearish],' says a Singapore-based market observer.
Stocks of middle distillates slumped by 34.6% week on week to 1.517 million barrels – a 12-month low and the second lowest total on record. Stocks were last lower at 1.212 million barrels on December 4, 2017. The gasoil arbitrage from East of Suez markets was still open and an increased number of Long Range tankers with ULSD have left the Middle East and India to come to Europe this month according to shipping sources and Platts cFlow, trade flow software. The East-West gasoil exchange-for-swaps (EFS) was at minus $14.19/mt yesterday.
Stocks of heavy residues rose by 8.1% week on week to 6.489 million barrels. Bunker demand in Fujairah was little changed the week as crude prices stabilised following production cuts agreed by OPEC and other producers last Friday. However, bunker fuel premiums in Fujairah remained relatively high on lower availability of cargoes in the market. The Fujairah ex-wharf 380 CST premium to the Mean of Platts Arab Gulf 180 CST high sulfur fuel oil assessments was at $13.42/mt Wednesday compared to an average of $5.76/mt since the start of the year. 'December supply is looking to be slightly tighter as it's traditionally a month where people don't have enough cargoes to sell,' a Fujairah bunker trader says.
Industry leading publication Tank Storage Magazine has just published its latest audit BPA statement, providing complete transparency to its customers and advertisers. BPA Group Worldwide is the largest auditor of media in the world and audits more than 2,600 media companies in more than 20 countries.
As a result of this independent audit process, all Tank Storage Magazine’s circulation claims are 100% verified. ‘We have been undergoing this rigorous audit process for seven years now,’ explains Margaret Dunn, the magazine’s publisher. ‘It’s an expensive and exhaustive task,’ Dunn adds, ‘but in today’s business environment the only way to build trust is by providing complete transparency.
BPA scrutinise every single aspect of Tank Storage Magazine’s distribution. Every six months they:
- Telephone a cross-section of recipients on the mailing list to verify they have physically received a regular copy of Tank Storage Magazine,
- Count how much people receive every issue of Tank Storage Magazine to prove circulation figures,
- Examine every single delivery order to prove which conferences & exhibitions Tank Storage Magazine is distributed at,
- Contact a cross-section of readers to check they are relevant, i.e. terminal operators / traders / EPC providers,
- Check the age of the data to ensure everyone receiving the magazine has been verified within the past 3 years.
‘In the advertising world, magazine prices are based on three things: the quality of reader, the total readership figures and the value of the editorial content,’ Dunn explains. ‘As the market leading publication in the storage sector, we pride ourselves on providing the best of all three.’
Since cost of the four Ps — print, postage, paper and people — have skyrocketed over the last decade, the media world has seen the frequency of deceptive claims soar. This reality has affected good brands, Tank Storage Magazine included, that are not cutting but actually investing more money than ever into products and services.
‘Our media pack proudly boasts that we print 40,000 copies a year, but as the market leading publication in the storage sector, it’s absolutely critical to us that we can prove these figures,’ Dunn explains. The audit clearly shows that each of the seven issues is posted to 3,257 named terminal professionals. Plus, an additional 2,489 copies are sent out seven times a year to trade shows and conferences.
Key figures from Tank Storage Magazine’s 2018 audit:
- Tank Storage Magazine is mailed out 7 times per each & each issue is posted to 3,257 named terminal professionals
- Over 15,000 copies of Tank Storage Magazine are distributed to tank storage-related tradeshows every year
- Every person on the mailing list has been verified within the last 3 years
- www.tankstoragemag.com has over 6,000 average users per month
- www.tankstoragemag.com has just under 15,000 average pageviews per month
- 100% of our readership are professionals within the tank storage industry
- 50% of our distribution is to North America
For further information on Tank Storage Magazine contact Margaret Dunn: email@example.com
Tokyo Gas Company and First Gen Corporation have signed a joint development agreement for the construction and operation of an LNG terminal in the Philippines.
The agreement concerns the construction and operation of the first LNG receiving terminal in the Philippines jointly by both companies to introduce LNG as an alternative source of the indigenous gas field, which is expected to decrease in production and be depleted in the near future.
Tokyo Gas received Japan's first ever LNG cargo in 1969 and it will continue to contribute to energy solutions for customers doing business in Southeast Asia and North America.
The company is also striving to develop the natural gas value chain in each region through its partnerships with local energy companies.
Inter Terminals has successfully closed the acquisition of NuStar Energy's European bulk liquid storage business for $270 million.
The acquisition increases Inter Terminals' storage capacity by 33% to 37 million barrels. Historically, NuStar Europe has generated stable cash flows underpinned by cost-of-service and fee-based contracts with a diverse range of customers.
The acquisition was funded by the net proceeds from a $200 million common share issuance that closed on November 7 and capacity available on parent company Inter Pipeline's revolving credit facility.
As of Monday, December 3 total oil product stocks in Fujairah stood at 18.322 million barrels – up by 6.7% week on week.
Stocks of light distillates jumped by 14.2% week on week to 10.003 million barrels. Gasoline markets remain bearish globally, with benchmark cracks in Asia and Europe in the negative. The Asian gasoline market remained in the doldrums Monday due to the persisting supply surplus and bearish near-term outlook. 'Things are still not looking too good; it does not look like any [refiner] intends to cut rates for the time being,' one refinery source says. 'We are looking for news on refinery turnarounds but indications so far have been that the impact might only be small,' another source said.
Stocks of middle distillates rose by 3.2% week on week to 2.318 million barrels - up slightly from the previous week's six-month low. Gasoil shipments from the Middle East into the Mediterranean have increased recently, with four vessels arriving into the region in the last seven days carrying diesel from the East of Suez. 'There are many cargoes around, nothing distressed, but some large cargoes are coming from the [Arab] Gulf, and the month of December is generally quieter in terms of demand as some people rush to get supply in November,' one market participant says. However, there are some indications arbitrage economics are tightening; the East-West gasoil exchange-for-swaps (EFS) rebounded from a 13-month last week to minus $15.62/mt yesterday.
Stocks of heavy residues dipped by 2.6% week on week to 6.001 million barrels - the lowest total since February 26. Bunker prices rebounded strongly in line with higher crude prices due to expectations OPEC and Russia will announce a production cut at its meeting in Vienna. Fujairah's bunker demand was slowly emerging, while deliveries were slightly tighter for prompt dates, market sources said. Bunker premiums in Fujairah have cooled from the highs seen last week, but remain strong amid lessened supply from Iran due to fears over US sanctions.
Petronas, through its subsidiary, Petronas LNG Ltd (PLL) and Vitol Asia Pte (Vitol) have announced the signing of binding Heads of Agreement (HOA) for long-term liquefied natural gas (LNG) sale and purchase (SPA) agreement.
Under the terms of the agreement signed on 1 October 2018, the LNG supply to Vitol commencing in 2024 will be approximately up to 0.8 million tonnes per annum for a period of up to 15 years on both Delivered Ex-Ship (DES) and Free on Board (FOB) basis.
The primary supply to Vitol will come from LNG Canada as well as from other PLL’s global LNG supply portfolio. LNG Canada is a major LNG project located in Kitimat, British Columbia, Canada which Petronas is one of the joint venture participants with equity holding of 25%. Canada is Petronas’ second largest resource holder after Malaysia, with vast unconventional oil and gas resources in the North Montney.
Petronas vice president of LNG marketing and trading, Ahmad Adly Alias says: ‘With a strong global supply portfolio, Petonas is able to provide flexible solutions within a changing and evolving LNG market. Petronas is pleased to sign this long-term LNG supply deal with Vitol and hope that it will continue to enhance the long history of business collaboration with the Vitol Group.’
Vitol Head of LNG, Pablo Galante Escobar adds: ‘We are delighted to be partnering with Petronas again, a global market leader and producer of natural gas and LNG. Petronas supplied our first LNG cargo in 2005 and we have now extended our LNG relationship until at least 2038. Vitol is committed to the long-term development of the LNG market and its evolution to become a more flexible and tradeable commodity. This supply deal with Petronas will further strengthen our ability to offer reliable and flexible LNG solutions to customers worldwide.’
With over 7 million tonnes of LNG delivered through 2017 and an extensive global trading and logistics network developed over a decade of delivering to customers, Vitol is one of the largest and most experienced independent traders of LNG. Petronas is also recognised as a reliable LNG supplier and solutions provider with over 35 years of experience. Operating from its main supply base (Petronas LNG Complex) in Bintulu, Sarawak. Petronas LNG Complex is one of the world’s largest LNG complexes on a single site. The nine-train facility has a combined annual production capacity of about 30 million tonnes. In addition, Petronas has also diversified its LNG supply portfolio in recent years with the inclusion of Australia’s Gladstone LNG and the world’s first floating LNG facility located offshore Sarawak.
Calgary-based petroleum transportation, storage and natural gas liquids processing business, Inter Pipeline has announced a $1.46 billion capital expenditure programme for 2019. 92% of the total capital expenditures will be for organic growth initiatives invested in sustaining capital projects.
Approximately $40 million will be devoted to improvements to the bulk liquid storage assets, with about $20 million being spent in 2019 to meet increased demand for storage at certain facilities located in the UK, Sweden and Germany, as well as the recently acquired terminal in the Port of Amsterdam.
‘Our 2019 capital programme will largely be focused on construction activities related to the $3.5 billion Heartland Petrochemical Complex,’ stated Christian Bayle, Inter Pipeline's President and CEO. ‘This transformational investment is proceeding according to plan with an expected completion date of late 2021. Rounding out our capital programme will be investments in various smaller scale infrastructure projects to enhance service offerings within our pipeline, NGL processing and storage business units.’
Conventional Oil Pipelines
In 2019, Inter Pipeline is planning to invest approximately $100 million in its conventional oil gathering business. This capital will develop several projects to serve emerging light oil plays in Alberta's East Duvernay and Viking regions.
The investments include $60 million to advance the previously announced Stettler Crude Oil Terminal Expansion on the Central Alberta pipeline system. This $82 million project includes the construction of two 130,000 barrel crude oil storage tanks and additional truck unloading capacity which are expected to enter service in phases between mid-2019 and mid-2020. The remaining $40 million will be spent developing several smaller projects, including new midstream marketing facilities on the Bow River pipeline system.
Oil Sands Transportation
Approximately $90 million is targeted for investment in Inter Pipeline's oil sands transportation business over the next year. Approximately $50 million will support the completion of a connection from the Cold Lake pipeline system to Canadian Natural's Kirby North oil sands project. Construction of the dual 23 km pipeline and pump station is scheduled to be completed in early 2019, with an in-service date of mid-2019.
The remaining $40 million of capital will be invested in various organic growth projects on the Cold Lake, Polaris and Corridor pipeline systems.
Within this business segment, approximately $1.1 billion is expected to be committed to advance the development of the Heartland Petrochemical Complex. In 2019, detailed design work and procurement of major equipment will be completed. Mechanical construction of the propane dehydrogenation plant will continue including the installation of major pressure vessels and other critical equipment modules. Site construction of the integrated polypropylene plant will also advance including the installation of the polypropylene reactor and other core mechanical components. The project continues to be on schedule and budget.
Additionally, approximately $20 million will be directed toward various projects to increase processing capacity, as well as enhance product storage and delivery systems at the Redwater Olefinic Fractionator. The remaining $10 million of capital will be invested in smaller organic growth projects at Inter Pipeline's NGL extraction plants.
Inter Pipeline expects to invest approximately $120 million in sustaining capital expenditures in 2019. Approximately $30 million will be allocated to the replacement of processing equipment and the improvement of site infrastructure within its NGL processing business segment. A further $30 million will be directed towards corporate infrastructure including enhancements to information technology systems.
Inter Pipeline continues to maintain a strong balance sheet with significant liquidity available on its committed revolving credit facility. Funding for Inter Pipeline's 2019 capital programme is expected to be provided through a combination of undistributed cash flow from operations, capacity available under its existing $1.5 billion revolving credit facility, the periodic issuance of new term or hybrid debt securities and proceeds from existing dividend re-investment programmes.
Par Pacific Holdings will acquire US Oil & Refining including refining and logistics assets for $358 million.
The acquisition includes a 42,000 barrel per day refinery, a marine terminal, a unit train-capable rail loading terminal and 2.9 million barrels of refined product and crude oil storage. The refinery and associated logistics system are strategically located in Tacoma, Washington and currently serve the Pacific Northwest market.
US Oil's refinery is located on 139 acres of fee-owned land near Tacoma. The refinery has the flexibility to optimise its crude slate based on market conditions. Currently discounted Bakken and Cold Lake crude represent over 95% of its current crude slate.
US Oil's logistics assets include a 14-mile jet fuel pipeline, a marine terminal with 15 acres of waterfront property, a unit train facility with 107 unloading spots and a truck rack with six truck lanes and 10 loading arms as well as 2.9 million barrels of storage capacity.
These assets provide connectivity to Bakken, Canadian and Alaskan crude and Pacific, West Coast, Pacific Northwest and Rockies product markets.
William Pate, president and CEO of Par Pacific Holdings, says: 'This transformative acquisition connects our existing assets in Hawaii, Pacific Northwest and the Rockies to create an integrated downstream network with significantly enhanced scale and diversification.
'We have been executing an ambitious strategic growth plan focused on attractive downstream markets for over three years and the acquisition of US Oil further demonstrates the progress we have made. We believe that this transaction provides a strong platform for earning and cash flow growth.'
Gasunie's hydrogen pipeline between Dow and Yara has been brought into operation.
The pipeline from Terneuzen and Sluiskil represents the first time that an existing main gas transported pipeline has been modified for hydrogen transport.
Hydrogen for industrial use will be exchanged via the pipeline, which is no longer being used to transport gas.
The 12km pipeline was the subject of agreements signed in March between Dow, Yara, ICL-IP and Gasunie Waterstof Services.
In the summer of 2017 connections were made at Dow and Yara and the gas transport pipeline was modified at a few points making it suitable for transporting hydrogen. The pipeline was then filled with hydrogen. It is now being used commercially for transporting more than four kilotons of hydrogen per year. Transporting hydrogen to ICL-IP at a later stage is also part of the plan.
Gasunie CEO Han Fennema says: 'This hydrogen pipeline highlights an important point in our history. This is the first time that an existing gas transported pipeline has been modified for transporting a different gas to natural gas.
'Gas infrastructure plays a connecting and facilitating role in the energy transition. We will be transporting different energy carriers, such as hydrogen and green gas, increasingly through our pipelines in the future.'
He adds that the network may have a capacity of 10 gigawatts or more by 2030.