Castleton Commodities International and Junction Energy Capital have broke ground on a $128 million oil storage and distribution facility.
The Corpus Christi Marine Storage Terminal, located on the Joe Fulton Corridor next to the M&G Chemicals plant in the Port of Corpus Christi, has been designed to load oil and gas products piped in from the Permian Basin and Eagle Ford shale plays.
It is expected to be operational in 2019.
A marine facility included in the construction project will provide docking for ships. It will store 4.5 million barrels of crude oil and process 100,000 barrels per day. Three docks will be built to load tankers for shipping.
The first phase of the project includes one dock and six storage tanks that will hold 250,000 barrels each.
Rob Johnson, of Junction Energy, says: 'The idea is to take barrels being produced in the Permian and Eagle Ford, ship them through the facility, load them on the vessels for the ultimate transport to other parts of the US and the world.'
Saudi Aramco's Jazan refinery and terminal mega project will herald the beginning of a historic new economic era for the region.
During a visit to the Jazan Economic City, refinery and terminal mega projects, president and CEO Amin Nasser said that once complete, Jazan will be transformed.
Commissioning activities for the complex will commence by mid-2018, and full operation will be achieved by 2019.
The projects are designed to enable an industrial springboard to achieve the vision of a diversified economy under the framework of the Kingdom's strategic Vision 2030 economic road map.
The 106-aquare kilometre complex will host the refinery as its anchor tenant and is viewed as pivotal to delivering much-needed economic transformation in the Jazan region and, at the same time, attract foreign investment.
Nasser said: 'It is a shared effort. We are in this together; we need to continue to move ahead as we are in the midst of creating a new and thriving era in Jazan. We are creating history, and five years from now, we will see a different Jazan.'
After hitting a record low on November 13, stocks have risen by 20% on the back of a rebound in heavy distillate volumes, S&P Global Platts Analytics said in a report.
Stocks of light distillates, including petrol and naphtha, rose 9.1% week on week to 4.656 million barrels, but remain largely rangebound, in line with levels seen in recent weeks. Demand in both Asia and the Middle East is strong, which is drawing in rising European volumes due to a closed trans-Atlantic arbitrage to the US.
Meanwhile, refinery outages and delays in the Middle East are contributing to tighter regional petrol supplies, Platts Analytics said. Stocks of middle distillates fell 18.7% week on week to 1.212 million barrels, hitting a new record low for the third consecutive week.
The spread between the front-month Singapore gasoil swaps and ICE gasoil futures narrowed to minus $7.46/mt on December 5, which is not wide enough for the arbitrage from East of Suez to Europe to work. Fundamentals for gasoil in Asia and the Middle East are seen as stable, although a closed arbitrage to Europe continues to squeeze premiums for Mean of Platts Singapore 10 ppm gasoil. Given the closed arbitrage, cargoes from India and the Middle East were likely to flow to Singapore instead, Platts Analytics said.
Stocks of heavy distillates and residues rose 12.9% to 12.314 million barrels. Stocks were at a 20-week high and have risen by 48% since hitting a nine-month low of 8.32 million barrels on November 13. This was partly the result of a more supportive market structure for storage.
The front-month time spread for Arab Gulf 180 CST swaps has been in backwardation since August 3, discouraging stock-building. The spread flipped into a contango of minus 50 cents for the first time since August 3 on December 5.
Local sources said that increased fuel oil supplies arriving in Fujairah from Iran, where domestic gas supply is back to normal following the end of maintenance at the South Pars fields, Platts Analytics said.
On the demand side, latest developments suggest that Pakistan State Oil (PSO) will continue to receive fuel oil cargoes from Fujairah. This follows a recent government order enabling fuel oil purchases by power plants to continue, seemingly overriding a previous decision in October to shut down fuel oil burning for power generation to reduce pollution in Punjab, the country's' most industrialised and populated province. PSO has tendered for a total of 455,000 mt of high sulfur fuel oil for loading from Fujairah in January.
The Global Tank Storage Awards are an excellent opportunity to recognise and reward employees, colleagues and even your boss for their success.
Accomplishments can range from length of time with a company, over-achieving on a particular project or even the successful launch/implementation of a new technology.
Winners will be chosen by a panel of leading terminal operators & oil companies from around the globe, including:
James Foster, Trading Manager, BP Oil International
Manager, Third Party Storage, Shell Trading
Jonathan Silk, Technical Manager, Oiltanking Odfjell Terminal Oman
Niels Van Bladeren, Chief Financial Officer, LBC Tank Terminals
Margit Blok, Global HSE Director, VTTI
Keith Jackson, Operations Director, InterTerminals
Oliver Stanelle, General Manager Central Engineering, Oiltanking
Roel Brouwer, International Technical Advisor, Vopak
Corne van de Reijt, Global Manager, Project Management, Vopak
Erik van Ommeren, Technical Director, Koole Tank Storage & Transport
Winners will be widely promoted within Tank Storage Magazine and online; be given a 'winners logo' to use in marketing materials and benefit from international recognition at Easyfairs' events.
The winners will be announced during the annual Gala Dinner & Awards ceremony in Rotterdam, during StocExpo Europe, on March 20.
Nominations are entirely free to charge and the deadline is the 22nd December - submit your nomination now
BP Biofuels and Copersucar will own and operate a major ethanol storage terminal in Brazil.
The 50/50 joint venture will own and operate the Terminal Copersucar de Etanol in Paulínia in the state of São Paulo, which is currently solely owned by Copersucar.
It has ten tanks with a total storage capacity of 180 million litres of ethanol and moves around 2.3 billion litres per year, with the potential for further expansion. It is located in one of Brazil's main fuel hubs and operates in a multimodal way, connected to important transport networks, pipelines and will soon be connected to the railway.
The facility supports the strategy of both companies – connecting important ethanol production with flexible storage capacity close to the main ethanol consumer markets in Brazil. The terminal will continue providing services to its current customers.
Dev Sanyal, BP's CEO of alternative energy, says: 'Brazil is one of the largest markets globally for ethanol as a fuel and this collaboration with Copersucar enables us to extend and expand our existing value chain to meet its growing demand.'
Paulo Roberto de Souza, president of Copersucar, says: 'The new joint venture will optimise ethanol logistics, with competitiveness gains and more flexibility in the way we serve the market. In addition to the values we share, the partnership with BP reinforces our commitment to the development of biofuels in Brazil.'
OPEC oil production output cuts have been extended to the end of 2018 as global oil demand has flourished along with the global economy.
At its 173rd meeting in Vienna, OPEC members and non members agreed to continue the production adjustments until December 2018 'while assuring full and timely conformity'.
Additionally, OPEC stipulated a clause in the new agreement which allows it to re-evaluate conformity and stock levels in June 2018. At that time it will examine prevailing market conditions and the progress made towards rebalancing.
Member countries that agreed to the extension continue their focus on a stable and balanced oil market in the interests of both consumers and producers.
The meeting observed that market rebalancing has gathered pace since May, with the OECD stock overhand falling to around 140 million barrels above the five-year average for October.
Crude oil in floating storage has also significantly fallen over the period. Global oil demand has also been robust with upward revisions since May, with oil demand growth standing above 1.5 million barrels a day for both 2017 and 2018.
HE Khalid A. Al-Falih, Saudi Arabia's Minister of Energy and president of the conference, says: 'There is now global recognition that without our collaborative action, the market would have continued to exhibit extreme volatility and future uncertainty, with far-reaching negative consequences for producers, consumers, investors, the industry, and the global economy at large.
'Oil demand growth, on the other hand, is on firm ground, and the direction of the market over the past several months shows a distinct improvement in both fundamentals and the overall market sentiment. This gratifying outcome has resulted primarily from 100% - or more- compliance to the production targets by OPEC and non-OPEC producers.
'Such positive developments to date show that we're heading in the right direction – but we are still not where we want to be in terms of inventories reaching their target levels, and must remain resolutely focused on this task.'
A new oil storage terminal project has been announced in the Bahamas by Oban Energies.
TECS Netherlands has been awarded a contract for the FEED work for the facility, which will provide storage for crude oils, residual fuel oils, middle and light distillates, specialty vegetable oil and heavy oils. The facility will also consider all other bulk liquid storage requests.
It will commence with an initial capacity of four million barrels, with plans to expand capacity to 20 million barrels by the fourth year of operation.
TECS has been contracted to design the facility to allow all design aspects to meet the EIA and EMP project approval stages.
The preliminary contact awarded covers the entire terminal engineering scope, from VLCC-jetty and piping to inland support vessel harbour, storage tanks, terminal lay-out and all auxiliary facilities such as water and waste water facilities, vapour treatment and power generation.
Further growth is planned for HES International's portfolio of tank terminals after the company doubled its tank capacity.
The company's HES Botlek Tank Terminal in the Port of Rotterdam has taken into service an additional 277,000 m3 of tank capacity, take its total capacity to 490,000 m3. Additionally, it also expected to start construction of an additional 130,000 m3 of tank space shortly. The most essential permits and commercial agreements are already in place for it.
HES will build a new jetty to accommodate tankers up to Suezmax size to support the expansion of the terminal.
The company recently completed the acquisition of the asphalt and bitumen terminal from Valt.
Jan Vogel, CEO of HES, says: 'HES International has a long standing history and a strong track record in providing safe and reliable storage and port infrastructure at key locations in Europe.
'The realisation of these key infrastructure projects but also our recent acquisition from Valt are a central part of this strategy. We are equally excited that we see similar developments and opportunities at most of our other terminals.'
Total refined product stocks at the UAE port of Fujairah stood at 16.665 million barrels in the week to November 27, up 5% from the previous week, according to data from the Fujairah Energy Data Committee, or FEDCom.
After hitting a record low on November 13, stocks have risen by 10% in two weeks on the back of a rebound in heavy distillate volumes, S&P Global Platts Analytics said in a report.
Stocks of light distillates fell by 9.1 % week on week to 4.267 million barrels, but have remained largely range bound over the past two months, the data showed.
Globally, petrol trading activity saw a lull recently due to the Thanksgiving holiday in the US.
Stocks of middle distillates fell by 2.7% week on week to 1.49 million barrels, marking the second consecutive record low for middle stocks.
Stocks of heavy distillates and residues rose by 13.1% week on week to 10.908 million barrels, the data showed. Stocks climbed above 10 million barrels for the first time in nine weeks, and are up by 31% from a nine-month low of 8.32 million barrels on November 13.
A backwardated market structure has weighed against holding fuel oil in storage, but this has moderated recently. The front month backwardation in Arab Gulf 180 CST swaps has narrowed to an average of $1.10/mt so far this month, compared with $1.73/mt in October and $2.02/mt in September.
Cargoes moving from the Middle East to Singapore are estimated at 2.5 million mt for November and will likely edge higher in December, with Singapore fuel oil prices currently $7-$8/mt above the Arab Gulf. Added to this, the Fujairah bunker market is still seeing sluggish demand, with less regional need for fuel oil in power generation due to the winter season, Platts Analytics said.
Saudi Aramco and SABIC have signed a MoU to develop a fully integrated crude oil to chemicals complex in Saudi Arabia.
The complex is expected to process 400,000 barrels per day of crude oil, which will produce 9 million tonnes of chemicals and base oils annually and is expected start operations in 2025.
Saudi Aramco president and CEO Amin Nasser says: 'This project converges the commercial and strategic interests of both Saudi Aramco and SABIC, while reinforcing Saudi Aramco's efforts to optimise the investment of our petroleum resources. The complex will also help expand our downstream portfolio, reducing our focus on the transportation sector and securing new and promising commercial opportunities.'
The complex will be constructed based on an innovative configuration that achieves crude oil to chemicals conversion that is unprecedented in the industry.
The project will support the creation of a world-leading downstream sector in Saudi Arabia, as part of the Kingdom's Vision 2030 economic transformation programme.
Viva Energy Australia has opened its new 100 million litre crude oil tank at its Geelong Refinery.
The $50 million crude oil tank project was a significant growth investment for the refinery, which will not only increase its production capabilities, but also improve fuel supply security for Victoria.
Viva Energy GM Refining Thys Heyns, says: 'This tank increases our crude storage capacity by 40% and in fact can hold enough crude oil to produce all the fuel required to meet Victoria's needs for about three days.
'In addition to the tank, we've invested millions in other infrastructure projects such as the $23 million pumping station, which increases the amount of fuel transported by pipeline to Melbourne by 25% and a $4 million upgrade to our jet fuel gantry to improve supply to Melbourne and Avalon airports.'
Additionally, Viva Energy has also announced it has been given approval to build a $15 million bitumen export facility, a $23 million, 25 million litre petrol tank and a $7 million revamp of its crude distillation unit furnace.
Heyns adds: 'All of these projects further demonstrate our commitment to build a sustainable business in Geelong and support our customers in Victoria.'
StocExpo & Tank Storage Events are delighted to announce a strategic partnership with the Federation of European Tank Storage Associations (FETSA), that sees the world's largest provider of tank storage exhibitions and conferences working with Europe's leading Association for the oil and gas storage sector.
The partnership will see the two entities enriching content and growing FETSA's yearly Annual General Meeting, which addresses the needs of the European storage sector. This year's AGM is to be held in Gothenburg, Sweden in June 2018.
StocExpo is the largest portfolio of tank storage events, which take place across Europe, Asia, The Middle East and Africa, and bring together thousands of tank storage professionals from across the regions to network and conduct business. FETSA represent the European national tank storage associations that operate in the bulk liquid storage sector. Over the coming years, this collaboration will undoubtedly benefit the sector by bringing together communities and delivering world class events.
Marc de Witte, Executive Director, FETSA, says: 'I'm looking forward to taking this year's AGM to Gothenburg, bringing our members together and welcoming new attendees. We have a valued relationship with the StocExpo portfolio and it's great to bring our organisations together as we continue to serve the tank storage community.'
Nick Powell, Divisional Director, StocExpo & Tank Storage portfolio adds: 'I'm delighted to be working in collaboration with FETSA and very much look forward to seeing the events grow over the coming years. This new synergy will also allow attendees to book their place at both FETSA and StocExpo events together and benefit from preferential rates.'
To find out more about StocExpo Europe or to register to attend please visit, www.stocexpo.com. To find out about FETSA visit www.fetsa.eu.
Inter Terminals' major chemical storage expansion at its Seal Sands terminal in the UK is almost complete.
Representing the largest organic development project for 10 years, the project comprises new tanks and pipeline links on the back of contracted demand for chemical storage at the facility.
Two 7,000 m3 mild steel tanks have been constructed with internal floating roods and a dedicated import pipeline for receiving product into storage by sea. Additionally, an existing cross-country pipeline is being redeveloped to allow the direct transfer of stored product to nearby chemical manufacturing plants.
A further three mild steel tanks, with a total capacity of 13,000 m3, have also been built with interconnecting infrastructure to enable to export of product by sea and by road via a new tanker loading facility.
The facility is located on the River Tees on England's east coast and the investment demonstrates the company's commitment to working closely with its customer base to identify and develop solutions for specific product storage and handling requirements.
Paul Oseland, commercial director of Inter Terminals, says: 'Our Seal Sands terminal has developed specialist expertise in storing and handling a wide range of chemicals, many of which have distinct storage requirements.'
Total refined product stocks at the UAE port of Fujairah stood at 15.864 million barrels in the week to November 22, up 5.1% from the previous week, despite a major drop in middle distillates, according to data from the Fujairah Energy Data Committee (FEDCom).
Stocks of middle distillates plunged by almost 28% to just 1.531 million barrels, a new record low, and less than half the 3.47 million barrel average for the year so far, according to a report by Platts Analytics.
The latest inventory fall comes as the arbitrage opportunity to move gasoil to Europe is firmly closed, with the East-West Gasoil EFS at a near three-month low of minus $10.32/mt on Tuesday. While the gasoil market has been the weakest performing part of the barrel in recent weeks, both Singapore and Persian Gulf time spreads have strengthened as regional demand improves.
The front-month time spread for Arab Gulf Gasoil has been in a contango since the beginning of November, up from a recent low of minus $1.47/b two weeks ago. On the supply front, sources noted a steady stream of outflows from India and the Middle East in recent weeks. Kuwait Petroleum Corp. is closing a sell tender for 500 ppm sulfur gasoil loading over December 8-9.
FUEL OIL STOCKS STILL LOW
At the same time, stocks of heavy distillates and residues rose by 16% to 9.641 million barrels, a new eight-week high. However, the figure is still below the 10.3 million barrel average since the start of the year.
Fuel oil inventories have been low since the beginning of October amidst a backwardated market structure and sluggish bunker demand. On average, some 2 million mt has left the region each month for Asia, and this is expected to continue into December, Platts Analytics said, as the price incentive for fuel oil supplies to the east remains in place. Front-month Singapore 380 CST swaps have seen a premium of around $7-8/mt relative to Arab Gulf 180 CST for the past month.
Light distillate stocks showed the least variation this week, only edging up 0.9% to 4.692 million barrels. European gasoline has been heading to West Africa and the US, which could signal a more limited supply to meet healthy Middle Eastern demand. Asian supply was seen trending upwards on increased Chinese export volumes expected in November and into December. However, this is likely to be matched by strong demand in Indonesia, Sri Lanka and Vietnam. As a result, the outlook for petrol East of Suez looks unchanged, Platts Analytics said.
The Global Tank Storage Association (GTSA), designed by the industry, for the industry, has been officially launched. Created to represent the needs of the terminal industry worldwide, the GTSA provides a platform for members to share and exchange information on its core values, such as the environment, safety and security.
By creating the world's biggest network of tank terminal professionals, the GTSA will have the power to have a meaningful impact on regulations and proposals affecting the storage sector.
The GTSA will also strive to internationally publicise and address the issues impacting its members globally.
The impressive Board of Directors is made up of CEOs and influential thought leaders from major terminals in all the key storage regions across the globe.
The Board of Directors currently includes:
- Pieter Bakker, Director, Buckeye, USA
- Jaap Koomen, General Manager, Burgan Cape Terminals, South Africa
- Yusr Sultan, Managing Director for Terminals, Emirates National Oil Company
- Martyn Lyons, CEO, Inter Terminals
- John W. Schlosser, President, Kinder Morgan Terminals
- Walter E. Wattenbergh, Group CEO, LBC Terminals
- Frank Erkelens, CEO, Odfjell Terminals
- Douglas van der Wiel, President, Oiltanking Asia
- Guy Bessant, President, Stolthaven Terminals
- Martijn Notten, CEO, Vesta Terminals
- Siavash Alishahpour, Managing Director, VTTI Fujairah Terminals
The association will be run by the Board of Directors. The Chairman will be announced following the Board's first meeting in London in December 2017.
The Global Tank Storage Association is open to everyone in the tank storage sector and is free to join.
Benefits of becoming a member of the GTSA include:
- Updates from the Board of Directors progress regarding global initiatives for the industry.
- A platform for members to share and exchange information on GTSA core values, such as: environment, safety and security.
- Monthly e-newsletter containing terminal news & information on industry updates.
- Monthly regulatory updates.
- Reduced subscription price for Tank Storage Magazine, the voice of the storage terminal industry.
- Reduced subscription price for Tank Storage Intelligence, the central online information portal for everything relating to tank storage.
- VIP invitation to all StocExpo & Tank Storage events.
- Preferential rates on delegates passes to StocExpo Europe, Tank Storage Germany, StocExpo Middle East Africa & Tank Storage Asia.
- Preferential rates on exhibition stands at StocExpo Europe, Tank Storage Germany, StocExpo Middle East Africa & Tank Storage Asia.
- Preferential rates for seats at the Global Tank Storage Awards.
- Hear about networking opportunities & special offers before anyone else.
To find out more about the GTSA or to join, please contact Margaret Dunn, Director General, Global Tank Storage Association on +44 7905 273691 or Nick Powell, Executive Director, Global Tank Storage Association: +44 7920 408587