Prostar Capital has reportedly purchased a storage terminal in Fujairah.
Reuters reports that the Australia-based fund has bought the Socar Aurora Fujairah Terminal, located off the Gulf of Oman.
Reuters quotes that sources with knowledge of the matter did not say what the size of the deal was.
The terminal, a joint venture between Azerbaijan's state oil company, a Swiss commodity house and the government of Fujairah, has 14 storage tanks with a total capacity of 352,000 m3. Another 315,000 m3 of capacity is currently being built.
Contanda has announced that it has withdrawn its permit application to handle and store crude oil at its Grays Harbour terminal.
It has submitted a new application to the City of Hoquiam, which officially starts the permitting process for cleaner fuels.
As previously reported, the storage operator is seeking to handle and store a portfolio of cleaner fuels, including biodiesel, renewable diesel and ultra-low sulphur diesel in anticipation of increasing demand for low-carbon, cleaner fuels.
Contanda has operated the facility in the Port of Grays Harbour since 2009. The revised application is for eight new storage tanks capable of storing 1.1 million barrels of liquid.
G.R. 'Jerry' Cardillo, CEO of Contanda, says: 'We heard the community, met with our customers and developed a revised strategy involving the storage of clean products.'
No timeline is in place for the revised project, but Contanda has said it will work with the City of Hoquiam and the Washington Department of Ecology.
Additional land has been made available for a storage facility in Walvis Bay as work continues on another strategic storage facility.
Speaking at the S&P Global Platts European Oil Storage Conference in Amsterdam, Elias Mwenyo, acting senior manager commercial at Namibian Ports Authority, said that the new liquid bulk terminal for oil should be commissioned by mid-2018.
The facility will increase the country's security of fuel supply from 10 days to 40 and that it will cater for the entire southern African market.
Once complete, the facility will have total capacity of 75 million litres, which will be able to storage various grades of diesel as well as unleaded petrol, heavy fuel oil and aviation fuel.
He said that in addition, there is 82 hectares of available land for more storage and that they are 'open to investment opportunities'.
'There is the potential for an additional oil storage facility in Namibia,' he added.
Phillips 66 and CLH Pipeline System have entered into a long-term throughput contract to December 2033.
Under the contract, Phillips will continue to supply a significant volume of petroleum products from its Humber Refinery into the CLH-PS pipeline at Killingholme, UK, each year.
CLH-PS will transport the material to the Bramhall Terminal, from where it will be delivered to Phillips 66 wholesale and retail customers via the Bramhall Terminal road rack.
As part of the agreement, Bramhall Terminal will be operated and maintained by CLH-PS.
Bramhall is a key fuels supply terminal in the UK network and an important hub in Phillips 66's logistics infrastructure. It comprises storage capacity of 44 million litres and is capable of supporting increased demand for fuel supply in the coming years.
Mary Wolf, managing director, UK marketing at Phillips 66, says: 'As part of this contact, extensive capital investments have been made to enhance Bramhall Terminal's capability and significantly expand our customer offering in the region.'
Nacho Casajus, CEO of CLH-PS, adds: 'This continues our strategy of insourcing our terminals into CLH operation so we are able to offer an integrated, first-class service to our customers.'
INEOS has launched six new oil and gas businesses covering shale gas as well as assets in Denmark, Norway and the UK.
The announcement follows the completion of a number of North Sea oil and gas acquisitions that began in 2015. In addition to the acquisition of DEA UK and Fairfield Energy Assets, it has also acquired DONG Energy's Oil and Gas business, the Forties Pipeline System from BP, significant onshore and offshore exploration licenses and expanded its own upstream services business.
INEOS Oil and Gas is led by Geir Tuft as CEO and comprises:
- INEOS Oil and Gas Denmark – operated and non-operated oil and gas assets in Denmark
- INEOS Oil and Gas Norway
- INEOS Oil and Gas UK – the Ineos Breagh assets and all assets mainly in the West of Shetlands
- INEOS FPS – the Forties Pipeline System, the Kinneil terminal and gas processing plant, the Dalmeny terminal, sites at Aberdeen, the Forties Unity Platform and associated infrastructure
- INEOS Shale – focused on onshore gas development
- INEOS Upstream Services – a new venture that will provide a broad range of high quality upstream services to Ineos and the wider upstream market.
Tuft says: 'The North Sea continues to present new opportunities for Ineos. These six units will allow us to run out businesses even more effectively than before.'
Total refined oil product stocks at the UAE port of Fujairah were 16.255 million barrels in the week to Monday, January 22, down 2.4% from the previous week, latest data from the Fujairah Energy Data Committee, or FEDCom, showed.
The relatively small change in total stocks masked larger movements in individual product categories, with light distillates up sharply, while heavy residues set a new record low, S&P Global Platts Analytics said in a report.
Stocks of light distillates jumped 21.1% on the week to an eight-month high of 7.2 million barrels. The petrol market is in the midst of seasonally low demand and heavy supply on high refinery runs rates in all regions. Demand in the Middle East in particular has cooled, with Saudi Arabia's petrol demand lower, especially for premium grades, after the January 1 domestic price rise.
So far this month, the crack for Singapore RON 92 petrol against Brent crude has averaged $7.50/b -- the lowest monthly average since August 2016. The front-month time spread for Arab Gulf petrol RON 95 remained in contango at minus 44 cents Tuesday, the report said.
Stocks of heavy distillates and residues fell 16.1% or 1.374 million barrels to 7.155 million barrels, the lowest total since FEDCom began reporting stock figures in January 2017. It was also the first instance where heavies did not represent the largest of the three product categories. Bunker demand in Fujairah has been dampened by the recent crude price rises, although buying interest has picked up in recent days as Brent futures have steadied at around $70/b. Nevertheless, overall weak demand in the Middle East is resulting in continued heavy volumes heading to Singapore despite narrowing price differentials between Singapore and Fujairah. Pakistan State Oil's recent decision to suspend fuel oil imports could also be impacting appetite to hold stocks. The company typically tenders for around 500,000 mt, or 3.175 million barrels, each month of utility grade fuel oil loading from Fujairah.
The market structure for middle distillates is in backwardation, a dis-incentive to hold stocks, and as a result inventories fell 13.1% or 287,000 barrels to a four-week low of 1.896 million barrels. Both supply and demand fundamentals are buoyed by seasonally high refinery runs and heating demand in the Northern hemisphere. But gasoil demand in Europe is said to be normal for this time of year and set to decline as winter gives way to spring.
Plans are underway to turn a beach into a new oil storage terminal in Zanzibar.
According to local media reports, a feasibility study has started, supported by the world bank, to develop a storage facility on 399.25 hectares of land for the distribution of fuel and natural gas.
Ministry of land, water, energy and environment’s principle secretary Ali Halil Mirza is reported as saying: ‘Provisional assessment indicates that Mangapwani-Bumbwini coastal area is geographically suitable because of proximity to other ports in East African region and sufficient sea depth.’
The new site for the facility would include a gas depot.
Kinder Morgan's Utopia Pipeline, stretching from Ohio to Canada, has been put into service.
The pipeline allows for product delivery of ethane from Harrison County, Ohio, to Windsor, Ontario, Canada.
The pipeline system has an initial capacity of 50,000 barrels per day and can be expanded to more than 75,000 bpd.
Don Lindley, president of natural gas liquids, products pipelines, says: 'The project team, in coordination with local, state and federal agencies, has done a tremendous job developing a project that provides ethane takeaway capacity from the Utica shale to the growing petrochemical industry.'
Saudi Aramco has signed a joint development agreement with CB&I and Chevron Lummus Global to commercialise its thermal crude to chemicals technology.
The innovative technology at Saudi Aramco's research and development centre enables higher chemicals yield than previously achievable. This technology also bypasses conventional refining steps by employing a proprietary direct conversion process.
Amin Nasser, Saudi Aramco president and CEO, says: 'Saudi Aramco is going beyond the quick wins and is instead prioritising investments in groundbreaking R&D and technology. Today's joint development agreement is a technological first which will position Saudi Aramco to maximise the value of each barrel of crude oil it produces in the near future.'
The partnership will accelerate the scale-up and de-risking of the technology.
OPEC and participating non-OPEC countries have achieved an average monthly production cut conformity of 107% in the first year of the cuts.
At the OPEC/non-OPEC joint ministerial monitoring committee meeting in Muscat, members considered the joint technical committee report that showed 129% conformity level for December 2017.
The committee agreed that, across a broad range of indicators, the first year of the declaration of cooperation, which involved 14 countries curbing their total oil production outputs, the first year had been a great success.
Conformity levels have increased on a monthly basis from 87% in January 2017.
In a statement, OPEC says: 'Once more, the unwavering resolve of participating countries to rebalance the market has been amply demonstrated.'
The committee expressed satisfaction with the overall results and urged all participating countries to continue and, to the extent possible, intensify their collective and individual efforts, in the interests of bringing stability to the oil market.
Recent data has confirmed that global oil demand growth will continue on a positive trajectory in 2018, buoyed by the strong performance of the global economy.
'This stellar performance by participating countries in 2017 launches the new year on an extremely positive footing, preparing the path for further successes in 2018,' the statement says.
Plains All American Pipeline will proceed with the construction of a new pipeline system from the Permian Basin to the Corpus Christi/Ingleside area.
Following a successful open season, the Cactus II Pipeline has received sufficient binding commitments to proceed. Permitting, right-of-way and procurement activities are underway and the pipeline is scheduled to be operations in the third quarter of 2019.
The pipeline includes a combination of existing pipelines and two new pipelines. The first new pipeline will extend from Wink South to McCamey, Texas and the second pipeline will extend from McCamey to the Corpus Christi/Ingleside area.
There has also be sufficient customer interest to conduct a second binding open season related to Cactus II Pipeline. Based on market demand, this second open season will include additional committed tariff rate structures, but is otherwise consistent with the terms of the first open season.
Stocks of light distillates fell by 5.1% to 5.948 million barrels, retreating from a 20-week high seen last week.
The front-month time spread for Arab Gulf petrol RON 95 fell further into contango and was at minus 53 cents yesterday, indicative of seasonally lower petrol demand. Naphtha cracks have fallen sharply recently as Asian petrochemical producers expect to see the end of peak run rates with the upcoming Lunar New Year, adding further downward pressure on the light distillates complex.
Arbitrage routes out of Asia are heard to be closed with the Middle East and the US West Coast already being sufficiently stocked. One source commented, 'the (Middle East) market is a bit long, but in the coming months ... it will be balanced with all the tenders and the turnarounds'.
Stocks of middle distillates rose by 5.5% or 113,000 barrels to a nine-week high of 2.183 million barrels. The price impact on gasoil of cold weather in Europe and North America has moderated, with markets in those regions seen as flat at best. Four LR2-sized vessels each carrying around 90,000 mt of gasoil that loaded from East of Suez locations are currently en route to the US East Coast, but this arbitrage has now closed in line with a falling spread between the NYMEX heating oil and ICE low sulfur gasoil futures.
Stocks of heavy distillates and residues fell by 6% or 545,000 barrels to 8.529 million barrels. Bunker demand in Fujairah was reported as sluggish in recent days, with the rally of ICE Brent prices to $70/b raising prices and dampening buying interest. The front-month time spread for Arab Gulf 180 CST remained in contango at minus 75 cents/mt yesterday. Added to the suspension of fuel oil tenders by Pakistan State Oil and a narrowing differential between Singapore and Fujairah cargo prices, fuel oil stocks could well rebound in the coming weeks.
Contanda has announced plans to expand its Grays Harbor facility to satisfy future demand for cleaner fuels storage.
The facility will be expanded to store a portfolio of cleaner fuels including biodiesel, renewable diesel and ultra-low sulphur diesel.
The facility, which Contanda has operated since 2009, handles methanol for industrial uses. In 2013, the company sought permits to expand the facility for other liquids, including crude oil. Ultimately, the permits were not granted, primarily because of opposition to the storage and handling of crude oil.
The revised application, which comprises eight new storage tanks capable of storing 1.1 million barrels of liquid, is in response to customer demand and the strong future across the West Coast for biofuels and commodities such as ultra-low sulphur fuel.
G.R 'Jerry' Cardillo, CEO of Contanda, says: The combination of deep-water shipping terminals, rail service, experienced labour and available, land for development of facilities is what first attracted Contanda to the area in 2009.
'These attributes continue to provide an attractive development option for us as we look to expand our West Coast terminal presence.'
Grays Harbor's strategic location and infrastructure are attractive to the company and potential customers whose products originate in the Northwest and can travel by rail to the port to be transferred to deep-water marine vessels.
Contanda is working with the City of Hoquiam and the Washington Department of Ecology on a streamlined permitting process, but does not have a timeline for the revised project.
Gasunie, Vopak and Oiltanking are creating a joint venture to build, own and operate an LNG import storage terminal in northern Germany.
The consortium are in the process of establishing the JV German LNG Terminal, which will provide LNG distribution services. To attract interest, and to establish a detailed insight in customer demand, an open season has been launched.
The terminal offers the opportunity to further diversify Germany's sources of gas supply and facilitates access to LNG as an alternative, low emission fuel for ships and trucks.
The terminal is currently focusing on Brunsbüttel, which benefits from its proximity to the port of Hamburg and other industrial companies in the region.
The start of the open season, on January 17, marks an important milestone in the development of Germany's first LNG terminal. The facility offers discharge and loading of LNG ships, storage of LNG, regasification and send out into the natural gas network and LNG distribution via trucks and barges.
Keyera has started operations at the Base Line Terminal, a new crude oil storage facility.
The first four tanks are now in service at the facility adjacent to its Alberta EnviroFuels facility near Edmonton, Alberta. The remaining eight tanks are expected to be phased into service throughout 2018.
It is a 50/50 joint venture with Kinder Morgan Canada and comprises 4.8 million barrels of crude oil storage capacity.
An additional 1.8 million barrels of crude oil storage capacity may be added to the terminal depending on future customer demand.
David Smith, Keyera's president and CEO, says: 'The Base Line Terminal is a great addition to our diversified portfolio of assets.
'This new business provides Keyera with stable fee-for-service cash flows fully underpinned by several take-or-pay agreements up to 10 years in length with creditworthy counterparties.'