Saras has announced plans to build a marine bunkering terminal and will market a new, cleaner marine fuel ahead of the IMO 2020 regulation.
The new terminal will be built at the Italian refiners Sardinia plant. Speaking to Reuters CEO Dario Scaffardi says that by producing the new fuel, the company has a competitive advantage over others as the low sulphur specs are difficult to achieve for technical reasons.
He says: 'With a small investment, we will have bunkering infrastructure and a lightering vessel and start selling local fuels to expand the market.'
The plant will initially produce 500,000 to 600,000 tonnes of ultra-low sulphur fuel oil per year.
Inter Pipeline increased its funds from operations by $30.8 million in its third quarter 2018 financials, compared to the same period the previous year.
The company reports funds from operations of $299.7 million and says this is primarily driven by record performance in the NGL processing business, which continued to provide exceptional results from higher production volumes and increased frac-spread pricing.
Its bulk liquid business generated funds from operations of $14.8 million in the quarter, compared to $25.2 million in the third quarter 2017. Storage demand for certain petroleum products in Europe continued to be impacted by a backwardated commodity pricing environment.
As a result, average utilisation rates during the quarter dropped from 95% in 2017 to 74%, which was largely reflective of unfavourable market conditions in Denmark, where storage utilisation rates averaged 50% during the quarter, compared to 96% in the same period in 2017. Utilisation remained at 90% or better in Sweden, the UK and Germany.
Christina Bayle, Inter Pipeline's president and CEO, says: 'Inter Pipeline's record results this quarter is proof of the company's resilience despite the volatility in Western Canada's commodity price.
'Our oil sands and conventional pipeline assets provide stability in challenging times, while our NGL processing franchise positions us for significant cash flow growth from elevated North American gas liquids pricing.'
Caliche Development Partners has put its first NGL subsurface hydrocarbon storage project in Beaumont, Texas into service.
This follows a detailed commissioning effort, providing safe and on-specification handling and storage of ethylene from Caliche's initial pipeline connection. Caliche is a Houston-based company focused on the development, construction and operation of subsurface hydrocarbon storage assets and related pipelines in North America.
The cavern allows for storage of up to 600 million pounds of ethylene and connects to a 12.8 mile-header system crossing five operating ethylene pipelines, two more of which will be connected to the facility before the end of 2018.
Additionally, drilling has been completed on a five-million-barrel cavern for ethane storage.
Caliche expects to provide up to 120,000 barrels per day of ethane deliverability, as well as a 12-mile ethane header mirroring the path of Caliche's ethylene system.
By the end of 2019, the ethane header will cross five ethane pipelines connecting more than 50% of Gulf Coast ethane consumption with the Mont Belvieu NGL complex.
The company has also begun drilling for a planned three-million-barrel cavern for other NGL storage with up to another 120,000 barrels per day of deliverability.
Once fully developed, Caliche Coastal will provide up to 32 million barrels of salt cavern storage facilities.
Dave Marchese, CEO of Caliche Development Partners, says: 'Caliche has received tremendous support from the market and Beaumont community over the past year-and-a-half, and it is rewarding to pass such a significant milestone.
'Customers are asking for ethane and other NGL storage, and we have the people, location and assets to serve these markets and customers.'
Odfjell has reported stable financial results for the third quarter of 2019, with an EBITDA of $32 million.
The company's terminals segment reported an EBITDA of $4 million compared to $9 million in the second quarter. It reported losses of $16 million related to the sale of the Rotterdam terminal that included currency translation and tax losses in addition to transaction costs.
The segment's financial was impacted by the fuel oil spill in the Rotterdam harbour, interrupting storage and distillation business due to the closure of the port. The sale of the terminal also led to fewer days of income contribution for the terminal.
The result was also impacted by higher G&A related to the restructuring of the Odfjell Terminals organisation.
The company's US terminals showed a stable EBITDA of $4.4 million compared to the previous quarter thanks to strong market demand and high activity in the country.
Odfjell CEO Kristian Mørch says: 'Adjusting for the Rotterdam terminal, our terminal division delivered stable results. We have positioned ourselves well for the future, both within tankers and terminals, with one of the most energy efficient fleets in the world.'
Anadarko Petroleum is selling all of its remaining midstream assets, including pipeline and oil systems in the Delaware and DJ Basins for $4.015 billion to Western Gas Partners.
At the same time, Western Gas Partners has entered into a merger agreement with Western Gas Equity Partners, which will result in a simplied midstream structure.
Anadarko is selling all of its interest in DBM Oil Services and APC Water Holdings to Western Gas. Western Gas is also acquiring a 50% stake in the Bone Spring Gas Plant and a 50% stake in MiVida Gas Plant in the Delaware Basin.
In the DJ Basin Western Gas will acquire Anadarko's 100% interest stake in both the DJ Basin Oil System and the Wattenberg Plant.
Additional assets being acquired include equity stakes in the Saddlehorn Pipeline, the Panola Pipeline and the Wamsutter Pipeline.
Anadarko will maintain operating control of the largest midstream master limited partnerships with 55.5% pro-forma ownership of the combined entity.
Al Walker, Anadarko chairman, president and CEO, says: 'The size of this asset sale, along with the clear benefits of the simplification transaction, highlights the tremendous value of Anadarko's midstream business.
'This will enhance the read-through value of Anadarko's midstream ownership through increased liquidity and a less complex structure.'
I Squared Capital has committed more than $500 million and contributed its Delaware Basin midstream portfolio company, Pinnacle Midstream, as part of a new partnership with EagleClaw Midstream and Blackstone Energy Partners.
Proceeds from I Sqaured, together with additional investments by Blackstone and EagleClaw's management team, are being used to fund EagleClaw's continued growth, including the expansion of EagleClaw's system, the acquisition of Caprock Midstream, and the ongoing construction of the Permian Highway Pipeline.
This investment by I Squared and the acquisitions of Caprock and Pinnacle further augment EagleClaw's position as the leading privately-held midstream operator in the Permian's Delaware Basin in west Texas.
Pro forma for these acquisitions, EagleClaw operates almost 1,000 miles of natural gas, natural gas liquids, crude and water gathering pipelines, more than 1.4 billion cubic feet per day of processing capacity and crude storage and disposal facilities.
It now has nearly half a million acres in the core of the southern Delaware Basin under long-term dedication for midstream services.
EagleClaw is also a 50% partner with Kinder Morgan on the Permian Highway Pipeline.
The acquisition of Caprock Midstream and Pinnacle Midstream marks the next step in the overall Delaware Basin midstream consolidation as EagleClaw continues to grow and diversify its business.
Bob Milam, CEO of EagleClaw, says: 'The acquisition of Pinnacle, coming on the heels of our recent announcements of the acquisition of Caprock and our partnership on the Permian Highway Pipeline, is another exciting chapter in the continued growth story of EagleClaw. This transaction expands our business in every aspect, from asset footprint to customer diversity, while remaining true to EagleClaw's core mission of providing best-in0class midstream service to Delaware Basin producers.'
Buckeye will sell a package of non-integrated domestic pipeline & terminal assets in locations across the US for $450 million.
This is in addition to the company selling its entire equity stake in VTTI for case proceeds of $975 million to Vitol Investment Partnership and IFM Investors.
These actions are the result of a strategic review that the company says will maintain its investment grade credit rating by reducing leverage, provide increased financial flexibility and reallocate capital to higher return growth opportunities across its remaining assets.
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.
Clark C. Smith, chairman, president and CEO says: 'I am confident that the actions taken as a result of our strategic review will not only strength our balance sheet and solidify our investment grade rating but also meaningfully improve distribution coverage.
'We are now well positioned to fund our annual growth capital spend without accessing the public equity markets. In addition, the sales of our interest in VTTI and the domestic asset package allow us to reallocate available growth capital to higher return initiatives across our domestic assets, particularly the opportunities we are actively pursuing along the US Gulf Coast.
'Our improved financial flexibility along with our remaining portfolio of pipeline and terminal assets and attractive growth opportunities are expected to provide solid long-term returns for our unitholders through all business cycles.'
In its third quarter financials reported a net loss of $745.8 million compared to the net income attributable for Buckeye's unitholders for the same period in 2017 of $116.2 million.
The third quarter was negatively impacted by a $537.0 million non-cash goodwill impairment charge, related primarily to its Caribbean assets, following an interim assessment of the recoverability of goodwill that was initiated in conjunction with the completion of the strategic review.
Smith adds: 'Buckeye's third quarter results fell short of prior year largely as a result of continued weakness in segregated storage, particularly in the Caribbean.
'Our domestic pipelines and terminals segment saw strong demand across the markets in which we operate, which drove increased pipeline and terminalling throughput volumes and increased revenues.'
The company's global marine terminals segment continued to benefit from strong operating performance from Buckeye Texas Partners, partially offsetting the continued impact of challenging market conditions in the segregated storage market, which drove lower utilisation and rates in this segment.
Limetree Bay Refining has reached an agreement in principle with the supply and trading arm of a major international oil company on the restart of the idled St. Croix refinery in US Virgin Islands.
As part of the agreement the oil company, which has not been named, would enter into a tolling agreement and serve as the refinery's supply and offtake counterparty.
Limetree Bay Refining anticipates completion of the restart by late 2019.
Limetree Bay Terminals bought the refinery and associated terminal assets out of bankruptcy in 2016. Since then the company has returned more than 25 million barrels of storage capacity to service.
In addition, the company has spent the last two years exploring opportunities for a restart and earlier this year negotiators a new operating agreement, which was ratified by the 32nd Legislature of the Virgin Islands.
Brian Lever, president of Limetree Bay Refining, says: 'The refinery restart project is the product of a collaborative effort with many Virgin Islanders. My team and I look forward to further advancing the refinery restart and the positive impact we hope to have on the local community through jobs, taxes and economic activity.
Kenneth E. Mapp, Governor of the Virgin Islands, adds: 'The refinery will bring at least $1.5 billion in outside investment over the next 14 months. Over the next ten years, the restarted refinery will product hundreds of millions of dollars in new direct revenues to the government. I am grateful to our partners at Limetree Bay for creating this opportunity, and I look forward to a productive and collaborative relationship with both companies now and in the future.'
The Duqm refinery project secured multi-source project financing of $4.61 billion, making it the largest project financing in the Sultanate of Oman.
The 230,000 barrel per day refinery project is a joint venture between Kuwait Petroleum International and the Oman Oil Company. Located at the special economic zone in Duqm along the south east coast of the country, the project comprises the development, construction and operation o f the refinery, on-site utilities, infrastructure and storage, together with offsite facilities including crude tank storage facilities in Ras Markaz, an 80km crude oil pipeline to the refinery and a product export terminal at the Port of Duqm.
The facilities comprise an international commercial facility, an onshore commercial facility, an Islamic facility, a United Kingdom covered facility, a Spain covered facility, a South Korea covered facility, and a K-EXIM direct facility.
Project chief financial officer Mubarak Al Naamany says: 'The $4.61 billion multi-sourced financing signed for the project is not only the largest project financing in the Sultanate of Oman, it also includes the largest shariah-compliant facility to a green field project in Oman provided by a consortium of Islamic financing institutions.
'These facilities provided by 29 institutions from 13 countries and insurance and guarantees provided by three major export credit agencies, is a testament of the confidence placed by international, regional and local lenders on the Sultanate of Oman, the shareholders and the project.'
The refinery is designed to be able to process a range of blended crude oils and is configured as a full-conversion hydrocracker/coking facility, which will utilise advanced technology, commercially proven at the scale of the project, supplied by leading technology licensors. Formal notice to proceed with three lump sum turn-key contracts with world class contractors was issued to them in June 2018.
Vitol Investment Partnership and IFM Investors will acquire Buckeye Partners' 50% equity interest in VTTI.
Once complete, VTTI will be owned 50% by IFM, a global institutional funds manager, and 50% by Vitol and Vitol Investment Partnership.
It will continue to be managed by an independent management team led by CEO Rob Nijst. The transaction is subject to certain conditions precedent and is expected to close by year end.
Sempra Energy and Total have signed an MoU that details the framework for co-operator in the development of North American LNG export projects.
The scope of the MoU covers continuing the development of the Cameron LNG liquefaction-export project in Louisiana and Energía Costa Azul liquefaction-export project in Baja California, Mexico.
The MoU between the two companies envisages Total potentially contracting for up to nine million tonnes per annum of LNG offtake across Sempra Energy's LNG export development projects on the US Gulf Coast and west coast of North America, specifically Cameron LNG Phase 2 and Energia Costa Azul LNG. Total may also acquire an equity interest in ECA LNG.
Jeffrey Martin, CEO of Sempra Energy, says: 'The US is increasing its global leadership position in the production of oil and natural gas. In large measure, the next step in fulfilling our country's energy potential is the development of critical export infrastructure for LNG.
'Sempra Energy has a long-term goal of developing more than 45 million tonnes per annum of LNG export capacity in North America. That is why our relationship with Total is so important. We plan to leverage the competitive strengths of both companies to accelerate development of North American LNG exports to global markets.'
Patrick Pouyanné, chairman and CEO of Total, adds: 'We are pleased to collaborate with Sempra Energy and the other Cameron LNG co-owners to extend the Cameron LNG project and to further enhance its competitiveness, but also participate in the development of export capacity on the west coast of Mexico, which will benefit from synergies with existing infrastructure and from a significant shipping cost advantages for customers in Asia.'
The $10 billion phase 1 of the Cameron LNG JV liquefaction-export projects includes three liquefaction trains with 14 Mtpa of export capacity under construction in Louisiana. Phase 2 of the project comprises up to two additional liquefaction trains and up to two additional LNG storage tanks with nine Mtpa of capacity.
ECA phase 1 is a one-train facility with an expected total export capacity of 2.5 Mtpa, utilising the existing LNG receipt terminal's tanks, loading arms and berth. ECA phase 2 is expected to have additional export capacity of 12 Mtpa of LNG.
Vopak has announced plans to expand its gas storage capabilities, with a new LPG terminal in South Africa as well as expanding its terminal in the Netherlands.
The operator and its partner Retile will invest in a new LPG import and distribution terminal with an initial capacity of 15,000 m3 in Richards Bay.
This investment facilitates further imports of a cleaner energy source into South Africa.
The additional capacity is expected to be commissioned in the second quarter of 2020.
Vopak will also expand it wholly-owned gas terminal in Vlissingen, the Netherlands. A total of 9,200 m3 of capacity will be built for LPG and chemical gases to serve the northwest European market.
The additional capacity is also expected to be commissioned in the second quarter of 2020.
The imposition of US sanctions on Iranian exports will result in a drop of one million barrels per day of oil exports and highlights vulnerability in the oil market.
As of today, November 5, Iran's current oil consumers have been ordered to completely eliminate their Iranian oil imports. According to energy consultancy Wood Mackenzie, these sanctions are the critical factor behind Brent's rally to over $80 a barrel in October.
While there is enough supply to meet demand this winter, the margin for error is narrow.
Ann-Louise Hittle, vice president macro oils, says: 'There are implications for the oil market.
'The biggest risk is this winter. Losing another one million barrels per day or more from Iran comes on top of a similar loss in supply from Venezuela over the last couple of years. Saudi Arabia, UAE and Kuwait have stepped up production since July to minimise the increase in price as the market tightens.
'We think there's just enough growth in supply from elsewhere to muddle through the next few months, meet winter demand and avert a price spike. Brent should hold around $78 a barrel, but it's a very fine line. OPEC spare capacity was an ample four million to five million barrels per day two years ago. There's only 700,000 barrels per day of additional available within 30 days right now.
'That means the market is vulnerable to strong demand in a cold winter or any new supply outage.'
She adds that they expect supply to grow 1.6 million barrels per day in 2019, with US tight oil driving this. 'But with Iran in the full grip of sanctions and Venezuela continuing to decline, that limited OPEC spare capacity will cast a shadow over the market for some time.'
Homayoun Falakshahi, senior research analyst with Wood Mackenzie's Middle East upstream team, adds: 'Beyond November 5, we expect crude exports to fall to one million barrels per day, though it could vary month to month; and condensate to 100,000 barrels per day.
'Crude sales will be concentrated around a core of supportive state buyers, China, India and Turkey.'
To read Tank Storage Magazine's in-depth analysis of the impact these sanctions will have on global markets, click here to read the full article.
As of Monday, October 29 total oil product stocks in Fujairah stood at 20.626 million barrels – down by 4.6% week on week.
Stocks of light distillates rose by 3.6% week on week to 9.203 million barrels. The lights category set a new record high for a second week in a row. Despite some support from recent declines in crude prices, gasoline markets remain bearish in both the East of West of Suez. Gasoline cracks in the US and Europe remain around the lows for the year, while Singapore gasoline cracks against Dubai are currently at their lowest since November 2013. 'The overall gasoline complex is weak with concerns of oversupply," a gasoline trader said. China recently released an additional 740,000 mt of gasoline export quotas for 2018, which would add further pressure on an already weak market.
Stocks of middle distillates were again little changed week on week, rising by 1% to 4.395 million barrels. Arbitrage of ultra-low sulfur diesel from the Middle East and the west coast of India to Europe looks set to rise with a weaker East-West gasoil exchange for swaps (EFS) see recently. The EFS fell sharply over the past week to an 11-month low of minus $15.72/mt on Tuesday. At such levels arbitrage to move Asian gasoil to Europe becomes viable on paper. 'The east/west spread is a bit more favourable so we could see within three weeks more product coming to Europe,' a trader said. The European gasoil market has been experiencing resurgent strength recently, with demand driven by tightness both on land and along the ARA region.
Stocks of heavy residues fell by 16.1% week on week to 7.028 million barrels – a seven month low. Bunker demand in Fujairah remains firm, supported by lower flat prices on the back of the recent slump in crude. Uncertainty remains on the supply side as buyers reduce their commitments to buy fuel oil from Iran in preparations for US sanctions that come into effect next week.
Fuel oil supply from Iran is expected to decline to below 1 million mt in October from the usual 1.2 million-1.4 million mt a month, market sources said this week. Iran is considered as a supplier of high-quality cutter stocks for bunker fuel as it sells 280 CST straight-run high sulfur fuel oil. Industry sources estimate about 500,000-600,000 mt/month of the Iranian fuel oil goes into the Fujairah bunker market.
Meanwhile, 'supply is not too tight [in Fujairah] at the moment,' a bunker trader in the Middle East said this week.
Bidvest Tank Terminals and Petredec have started construction of a mounded LPG import and storage facility in Richards Bay, South Africa.
The R1 billion facility will be the largest in Africa and will provide security and reliability of supply, which has been the biggest obstacle to the increased use of LPG in South Africa.
It will also allow for exports of the fuel to neighbouring countries. Currently, South Africa uses 400,000 tonnes of LPG annually. The facility is expected to increase this by 200,000 tonnes a year.
End-to-end LPG supply requires a vast national value chain, and this will expand as a consequence of this facility being commissioned. The increased and sustainable supply will mean that the price of LPG will compete favourably with that of other energy sources.
David Leisegang, Bidvest Tank Terminals' managing director says: 'An increased LPG supply will result in the fuel becoming a significant alternative to South Africa's current energy supply, with little additional infrastructure required.
'From an engineering point of view, it is a noteworthy achievement. The facility will comprise four five 650 tonne tanks, the largest such tanks in the world, and dedicated 24-hour road tanker and railcar loading facilities will ensure a reliable supply all year. The facility will have a substantial downstream effect on the wholesale and distribution industries, and of course on the southern African consumer.'
The facility is expected to be operational in 2020.
Reform and economic diversification will be key in helping major oil & gas exporters cope with the changing dynamics of global energy.
A new report from the International Energy Agency – the Outlook for Producer Economies - examines economies in Iraq, Nigeria, Russia, Saudi Arabia, UAE and Venezuela which are the pillars of global energy supply.
The report details that the changing dynamics include rising production from new sources such as shale, uncertainties over the pace of oil demand growth and deployment of new energy technologies.
The report says that the significant peaks and troughs in the oil price has highlighted the structural weaknesses in many of the major exporters. Since 2014, the net income available from oil and gas has fallen by between 40% (for Iraq) and 70% (for Venezuela).
Additionally, the volatility of hydrocarbon revenues presents dilemmas for countries whose budgets depend on them. The extent to which producer countries steer through essential economic transformation can have major implications for energy markets and energy security, according to the report.
Dr Fatih Birol, IEA's executive director, says: 'More than at any other point in recent history, fundamental changes to the development model of resource-rich countries look unavoidable.
'Following through with the announced reform initiatives is essential, as failure to take adequate action would compound future risks for producer economies as well as for global markets.
The countries examined are very diverse, and the report considers a wide range of experiences and prospects. Many of them have pushed forward plans to boost investment and growth in the non-oil sectors of their economies. However, Venezuela provides an example of how badly things can turn out when economic and energy headwinds gather strength.
Birol adds: 'The reform process should be much wider than energy; but it relies on a well-functioning energy sector. Successful reform programmes can open a broader range of strategic options for producers, as well as new opportunities for engagement on a range of energy issues. There is a lot at stake.'
To read the report in full, click here.
Inter Terminals is set to acquire all of NuStar Energy's European bulk liquid storage business for $270 million.
Parent company Inter Pipeline says that Inter Terminals will acquire 100% of the issued share capital of the business and that the transaction is expected to close in the fourth quarter of 2018.
NuStar Europe comprises seven coastal terminals totalling 9.1 million barrels of storage. One is located in Amsterdam with the remaining facilities located in the UK near London, Runcorn, Eastham, Grangemouth, Clydebank and Belfast.
The investment includes 321 tanks, cost-of-service and fee-based storage business primarily focused on inland distribution and blending of petroleum & petrochemical products, historically strong utilisation rates as well as stable cash flows.
The transaction will increase Inter Terminal's storage capacity by 33% to 37 million barrels and the company says there is strong integration potential with Inter Terminal's existing terminals in the UK, resulting in enhanced product storage and custom blending solutions for customers.
NuStar's European terminals operate as storage and blending hubs for the transhipment of refined products as well as the inland distribution of petroleum and petrochemical products. They are well positioned to facilitate the regional movement of products driven by the significant imbalances that exist between supply and sources and demand locations.
In the UK, the 1.9 million-barrel Grays terminal is a key regional supply point, responsible for handling approximately 17 million barrels of refined products per year and provides cost effective access to London's fuel distribution network.
The 3.8 million-barrel facility in Amsterdam, Netherlands plays a key role in the Port of Amsterdam, comprising approximately 10% of independent storage capacity. The terminal provides gasoline, gas oil and fuel oil storage, and blending services, including those required to produce IMO 2020 compliant marine fuels.
The smaller terminals in Belfast, Eastham, Grangemouth, Runcorn and Clydebank in the UK primarily support the distribution of petrochemicals, gasoline, diesel and sulphur to regional demand centres.
Christian Bayle, Inter Pipeline's president & CEO, says: 'The addition of NuStar Europe is an exciting step forward for our European bulk liquid storage business.
'The acquisition materially increases our overall storage capacity and establishes Inter Terminals as the largest independent storage operator in the UK. Furthermore, the transaction provides an attractive entry into the Port of Amsterdam. The port is the world's largest gasoline blending hub and has experienced significant storage growth over the years.'
The Carlyle Group and the Port of Corpus Christi have agreed to build a major crude oil export terminal on Harbour Island.
The facility will create the first onshore location in the US Gulf capable of servicing fully-laden VLCCs and it will connect growing crude oil production in the US with global markets
VLCC access at the Port of Corpus Christi will open the global markets for US oil producers, pipelines, their supply chains and customers. As part of the agreement, the port will work exclusively with Carlyle to bring together world-class oil producers, marketers, pipeline operators and marine terminal operators to ensure a significant portion of the new oil production in Texas will have a reliable gateway to international markets.
Carlyle will lead the construction and operations of the terminal on an exclusive basis. It will also arrange for a private funding solution for a dredging project to bring fully-laden VLCCs to Harbour Island.
The terminal, which will include the development of at least two loading docks as well as crude oil tank storage inland across Redfish Bay, is expected to be operation in late 2020.
Sean Strawbridge, CEO of Port of Corpus Christi, says: 'A project of this magnitude further underscores the vital role the Port of Corpus Christi plays in the global energy markets and as an important economic generator for the great state of Texas.'
'Corpus Christi is certainly where the incremental barrels want to go as we have deep water, availability of land for development and plenty of capacity to absorb the forecasted US energy production growth in oil and gas,' adds Charlie Zahn, chairman of the Port of Corpus Christi.
Efforts to improve and promote the Mediterranean region as a logistics and hub platform alternative to the ARA region have gained momentum in recent years.
Several key players have launched initiatives to elevate the region as another gateway into Europe, including the Port of Tarragona, Spain, with executives believing that collaboration between core logistics sectors such as shipping, tank storage and ports is the key to capturing these trade flows.
The port’s second Mediterranean hub workshop will explore what potential exists for the Mediterranean region, as well as ways to make the region more competitive and attract more trade flows.
Charles Misseghers, analyst and support at UMF (Maritime and Fluvial Union of Marseille Fos), will be speaking in greater detail about how a Mediterranean platform will further optimise petrochemical distribution.
In an interview with Tank Storage Magazine, Misseghers says that a Mediterranean platform will offer a range of new possibilities for shipowners, logistics companies and petrochemical companies.
‘The Mediterranean region has all the assets that the north has and has perfect weather conditions for maritime and logistics. Not only that, we are also as well connected as the north range to pipelines and railways.
‘The region is already a hub for petrochemicals due to the lack of space and congestion in the north. It also has good intermodality and is an ideal link with the rest of the Mediterranean countries.’
Misseghers also believes that collaboration between all of the actors in the region is key to making this ambition a success.
‘There needs to be co-operation between all of the private actors with the full support from public actors. Also, there needs to be no competition between ports to foster collaboration.’
In addition to the conference, featuring sessions on European petrochemical markets trends, the storage market trends and competitiveness as well as an analysis of current flows in the Mediterranean, delegates will also be given a tour of the port’s chemical quay and Tepsa’s terminal, which is currently undergoing an expansion.
The expansion will take place over three phases. The first, which comprises the construction of six tanks with 15,500 m3 of capacity, will be complete by the second quarter of 2019. Four of the six tanks have already been built.
The second phase is due to be complete in 2020 and the final phase will be finished in 2022. Once complete, the facility will have more than 100,000 m3 of storage capacity.
Speaking to Tank Storage Magazine, Gonzalo Rey, terminal manager, Tepsa Tarragona, says: ‘The evolution of the chemical cluster in Tarragona is encouraging a solid expansion period, with some companies announcing plans to increase their production capacities.
Tepsa’s mission is to be part of the supply chain of our customers and helping them to optimise it.
‘Thus, we believe we have to accompany our customers in their growth plans by developing new storage solutions for them with state-of-the-art facilities.’
Rey says that Tarragona has a strong geostrategic and commercial position next to the ChemMed, one of the most important petrochemical clusters in southern Europe, underscoring its importance for trade flows from the East to the West. It also boasts efficient infrastructure, allowing the terminal to offer a flexible service to its customers.
The company, working with port officials, is presenting new facilities in the chemical quay to current and potential new customers to help further promote hub activity.
‘Tarragona offers one of the best infrastructures in the Western Mediterranean for ship owners and ship agent customers. This event is a great opportunity to meet producers, stakeholders and potential clients as well as promoting open discussion to find new opportunities and improvements in our sector.’
The event will take place on November 22 and 23 at the Port of Tarragona. For more information, visit www.hubday2018.eventbrite.es
As of Monday, October 22 total oil product stocks in Fujairah stood at 21.612 million barrels – up by 5.8% week on week. Combined product stocks are at their highest since August 14, 2017.
Stocks of light distillates rose by 8.8% week on week to 8.886 million barrels – a record high since the start of weekly inventory reporting in January 2017. Gasoline market sentiment remains weak due to continued movement of European gasoline into the East of Suez. 'The balance is coming from outside [...] people are bringing in cargoes from the Mediterranean,' a source based in the Middle East said. Demand remains present, with Kuwait's KPC and Pakistan's PSO issuing fresh buy tenders this past week, but this is outweighed by heavy supply fundamentals. 'On the whole, sentiment in the gasoline market is bearish. Although the demand side seems stable, the supply side does not look good with arbitrage cargoes [from the West] coming in and adding on to the high inventories [in Asia],' a Singapore-based trader said.
Stocks of middle distillates were almost unchanged week on week at 4.353 million barrels. Inventories remain at their highest since March 27, 2017. Gasoil continues to see building positive sentiment, based mainly on the strength of Asian demand. Asian gasoil supply has been constrained by refinery maintenance, even as North Asian bunker, barge and fishing sector requirements and Australian mining industry demand remained robust. Asian demand has drawn in gasoil volumes from the Middle East and India, largely offsetting a lack of arbitrage flows to the West.
Stocks of heavy distillates and residues rose by 5.8% week on week to 8.373 million barrels – a nine-week high. Bunker demand in Fujairah is expected to pick up as flat prices have declined in line with crude. Brent futures fell by 4% overnight to an eight-week low of $76.44/b yesterday. 'With prices moving down so much today, demand for bunkers increased, with more buyers coming out to purchase,' one bunker supplier said. In addition to improved demand, some supply tightness was seen due to the snapback of US sanctions on Iran, which is traditionally the key supplier of fuel oil to Fujairah.