India's first East Coast regas project, Ennore LNG terminal, has been commissioned by Indian Oil Corporation.
Prime Minister Narendra Modi led the dedication ceremony to the LNG import terminal at Kamarajar Port in Tamil Nadu. Once complete, the terminal will have a capacity of five million tonnes per annum. Indian Oil is laying a 1,244 km pipeline for evacuation of gas from the terminal in order to supply natural gas to various customers.
The project is part of efforts to double the country's regas capacity to 56.5 mmtpa by 2025.
Wood Mackenzie's senior analyst Kaushik Chatterjee says: 'The Ennore terminal will help fast-track IOCL's city gas distribution plan, as gas from the terminal will be supplied to consumers around Chennai and Madurai.
'In the longer term, Ennore could become integrated with India's national gas network via a pipeline to Vijayawada or Kakinada in Andhra Pradesh. Historically, delays in intra-state pipeline construction have impeded gas and LNG usage in India. The pipeline connecting the Kochi regas terminal in Kerala to Mangalore in Karnataka is a glaring example.
'The company has additional plans to connect remaining refineries to gas pipelines, which will likely at least double its gas demand. IOCL has signed a 0.7-mmtpa contract with Mitsubishi for 20 years, with supply coming from Cameron LNG in the US. We believe the commissioning of Ennore may also lead IOCL to source more LNG directly rather than via Petronet.
'Indian regas capacity had constrained imports in recent years. Both Dahej and Hazira operated at maximum levels through much of 2018. The commissioning of Ennore will be the first in a series of regas projects coming online in 2019; Mundra and Jaigarh FSRU are next.
'One additional terminal is under construction at Dhamra on India's east coast and is expected to complete in 2022. Furthermore, Dahej's capacity is being increased by 2.5 mmtpa to 17.5 mmtpa, while the completion of the Kochi pipeline and Dabhol breakwater are also likely by 2020.
'Once all these terminals and enhancements are completed, India's regas capacity will reach 56.5 mmtpa by 2025 from the existing 25.5 mmtpa. Beyond this, India's ability to import significant volumes of LNG could be enhanced further if several other proposed regas terminals proceed.'
As of Monday, March 4 total oil product stocks in Fujairah stood at 21.547 million barrels. Inventory levels fell 2.3% or 513,000 barrels week on week based mainly on a draw down in volumes of heavy residues.
Stocks of light distillates rose by 5.1% week on week. Total volumes rose by 534,000 barrels to stand at 10.99 million barrels. Light distillates stocks have held steady above the 10 million barrels level since the start of 2019.
Despite the build in light distillate stocks, the East of Suez gasoline market showed signs of strength with turnarounds across a number of North Asian refiners expected to lead to an impact on supplies in the region. 'Sentiment is clearly better than the previous weeks,' a trader said. Closer to Fujairah, Kuwait's KPC issued a tender seeking 25,000 mt of 91 RON gasoline for delivery into Mina Al-Ahmadi over March 27-28. The FOB Singapore 92 RON gasoline crack against front-month ICE Brent crude oil futures hit a four-month high on Monday of $2.41/b before moving up another 46 cents/b on Tuesday to hit $2.87/b.
Stocks of middle distillates showed a gain of 9.3% week on week moving to 1.980 million barrels. This reflects a build of 168,000 barrels week on week. Sentiment was seen as softening with cash differentials for gasoil falling for four consecutive days with the Mean of Platts Singapore cash differential for 10ppm cargoes moving into further negative territory Tuesday falling to 5 cents/b from Monday to a 27 cents/b discount.
Stocks of heavy residues saw the largest decrease this week moving down 12.4% to 8.877 million barrels falling 1.214 million barrels on the week. Within Fujairah traders reported a persistence of ample supply of bunkers, a feature of the market that has stood since the start of the year. As a result premiums for both delivered and ex-wharf bunkers fell in February. S&P Global Platts data shows that the spot delivered 380 CST bunker fuel premiums over MOPAG 180 CST averaged $11/mt last month, a fall of $6/mt from January.
ExxonMobil has shipped the first Group II base stocks from its newly expanded Rotterdam refinery, which is the first world scale producer of Group II base stocks in Europe.
This makes ExxonMobil the only Group I and II base stocks producer with significant manufacturing assets in the US, Europe and Asia-Pacific.
Start up of EHC production at the Rotterdam refinery has begun following the completion of the $1 billion hydrocracker expansion project in the fourth quarter of 2018. The project also increases production of ultra-low sulphur diesel and improves the refinery's energy efficiency by 5%.
Base stocks storage capacity at the Rotterdam refinery was increased with the expansion, helping ensure improved supply reliability and ExxonMobil's expanded collaboration with additive companies provides maximum product coverage. The company's EHC base stocks slate helps enable cost-effective blending of the majority of lubricant applications in the automotive, heavy-duty and industrial sectors. As a result of the expanded collaboration, a number of market-general formulations for EHC grades are available from the main additive suppliers.
Nick Berthiaux, vice president, basestocks & specialties, says: 'By continuously growing our manufacturing network, we are strengthening our global supply capability, and providing customers with an efficient and robust product offer. Seeing the first shipment of our EHC base stocks gives us all great satisfaction, and reaffirms that our offer is unique, differentiated and valued by the market we serve.'
ExxonMobil Basestocks will continue to expand its Group II supply capabilities with a hub terminal in Hamburg, Germany, scheduled for late summer.
GrainCorp has entered into an agreement to sell its Australian bulk liquid terminals to ANZ Terminals for $350 million.
The bulk liquid terminals business in Australia was acquired by GrainCorp in 2012 as part of the acquisition of Gardner Smith. It operates eight liquid terminals sites across the country, with a combined storage capacity of 211.000 m3. The sites specialize in the storage and handling of bulk liquid fats and oils, fuels and chemicals for a range of customers, including GrainCorp Oils. As part of the transaction, GrainCorp Oils will enter into a long-term storage agreement with ANZ Terminals.
Mark Palmquist, GrainCorp managing director and CEO, says: 'Since we acquired the assets in 2012, the Australian bulk liquid terminals business mix has evolved substantially and is increasingly serving other sectors, in addition to the edible oils commodities that are more closely aligned with GrainCorp's core business. Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, whilst releasing capital and unlocking significant value for our shareholders.'
GrainCorp has retained ownership of its New Zealand bulk liquid terminals, which are more fully integrated into its supply chain, however, it is independently reviewing options for this business as part of the ongoing portfolio review.
Gibson Energy plans to build an additional 500,000 barrels of new capacity at its Hardisty Terminal.
The announcement follows the signing of a long-term agreement with an investment grade customer, the closing of the divestitures of Wholesale Propane and non-core Environmental Services North, and continued execution on its infrastructure growth projects.
Steve Spaulding, president and CEO, says: 'We continue to demonstrate very strong execution on our infrastructure growth projects, with three new tanks totaling 1.1 million barrels at our Hardisty Terminal as well as the Viking Pipeline entering service ahead of schedule and in line with budgeted capital.
'In addition, the remaining tanks currently under construction at our Hardisty Terminal are ahead of schedule and we have also sanctioned the construction of an additional tank, underpinned by a long-term agreement and consistent with our outlook of two to four tanks per year over the medium-term. Based on commercial discussions, we expect to sanction several additional projects over the course of 2019, and importantly, we will ensure we remain fully funded from our entire sanctioned capital programme.'
The announced expansion represents the fourth phase of development to be constructed at the hop of the hill portion of the terminal. It is expected to be in service in the fourth quarter of 2020.
In mid-February, Gibson successfully placed the first phase of development at the top of the hill portion of the Hardisty Terminal into service ahead of schedule with capital costs in-line with budget. The facility has reached an aggregate storage capacity of 10 million barrels.
In the US, the company expects to begin construction of the pipeline connection between its Pyote East gathering system and the Wink Terminal in the second quarter, with the project expected to enter service in the fourth quarter of 2019.
Korea Midland Power and Vitol have signed an MoU to explore upstream, midstream and downstream project opportunities in LNG.
Under an existing long-term supply and purchase agreement signed in 2015, Vitol agreed to supply Komipo with 400,000 tonnes of LNG annually for 10 years.
Hyung Koo Park, president and CEO of Komipo, says: 'Komipo looks forward to developing its relationship with Vitol, our trusted partner in the LNG business.'
Russel Hardy, CEO of Vitol Group, adds: 'We are delighted to strengthen our partnership with Komipo, a highly well-respected company in the region, and look forward to working with them on future opportunities.'
Navigator Energy Services is significantly expanding its Glass Mountain Pipeline System, including adding new segregated crude grades and additional storage and transportation capacity.
The project will include multiple new origin points, and new market access at Cushing, Oklahoma. The system currently serves crude oil and condensate producers and other shippers in the STACK, Woodford/Cana, Granite Wash and Mississippi Lime areas of the Anadarko Basin in central Oklahoma.
The expansion will add five new mainline origination points in Canadian, Kingfisher and Grady Counties, Oklahoma, further extending the service into the STACK, Woodford/Cana, Merge and SCOOP plays.
The project will include 70 miles of new transportation mainlines and 750,000 barrels of additional storage capacity. Underpinning the expansion are multiple long-term agreements with top tier operators representing more than 50,000 barrels per day of existing production and almost 600,000 operated acres, bringing Navigator's total dedicated acreage in Oklahoma to more than 800,000 acres.
Navigator has begun initial construction of the Cushing Express Pipeline, a new 20-inch pipeline to transport segregated crude grades from the production field to its destinations in Cushing. It will add an initial 250,000 bpd of incremental deliverability.
In response to demand and increased throughput needs, Navigator completed a new interconnection with Cushing terminals owned by a subsidiary of Magellan Midstream Partners. The Magellan terminal will provide Navigator with access to a high-capacity distribution network, reaching new markets and 1.75 million barrels of operating storage to break out Navigator's neat crude and condensate grades. As a result of its Magellan terminal position, Navigator's Cushing tankage storage capacity is 2.75 million barrels. The increase in storage capacity allows Navigator to provide its customers a bulk storage solution for each of its crude and condensate segregations prior to batching downstream.
The new destination and storage will also seamlessly integrate into Navigator and Magellan's proposed Voyager Pipeline, which will provide Navigator customers a direct path from the Oklahoma production field to the Gulf Coast.
Laura McGlothlin, Navigator CCO, says: 'The new assets and segregated grade offerings, along with integration to the proposed Voyager Pipeline, are a strategic and consistent extension of Navigator's overarching business plan to provide the optimal transportation solution to shippers, directly linking multiple production areas and crude grades with end-users in liquid market.'
Once complete, the system will include more than 440 miles of pipeline, 10 truck injection stations, 4.3 million barrels of storage to accommodate five neat grades of crude oil and condensate, and pipeline capacity to transport in excess of 450,000 bpd.
ADNOC has signed an agreement with South Korea's SK Engineering and Construction to build the world's largest underground crude oil storage facility.
The underground facility will have the capacity to store 42 million barrels of crude oil in Fujairah in the UAE.
The EPC contract is for the construction of three underground storage caverns, each with a capacity of 14 million barrels, deep blow ground level. This contract is the largest for a single project award for underground crude oil storage in the world and is valued at AED 4.4 billion ($1.21 billion).
The ADNOC Fujairah Underground Storage will strengthen the UAE's position as a reliable supplier of crude oil as well as give ADNOC greater flexibility, allowing it to manage and optimise its delivery schedule and support its broader move into trading. It will also enhance its position as one of the key trading and supply partners in Fujairah's growth as a global oil and products storage and trading hub.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO says: 'Construction of the world's largest single underground project award ever awarded for oil storage will enhance the UAE's energy security, in line with the wise guidance of the country's leadership. Importantly, developing this strategic oil storage mega facility in Fujairah will also support and further enable our broader trading ambitions, strengthening our ability to respond efficiently and competitively to the needs of our customers, while also providing ADNOC with greater flexibility to proactively respond to market needs and commercial opportunities.'
Works started in 2018 and the first phase of the facility, involving the construction of an access tunnel, has been completed.
When complete in 2022, the facility will be one of the largest facilities of its kind in the world and able to store three different types of crude oil, providing ADNOC with increased flexibility to export crude through Fujairah's Arabian Sea oil terminal.
Blanca André Ordax from the European Commission has been announced as one of the key speakers at this year's FETSA AGM conference & exhibition.
Ordax will be speaking on the topic of the energy transition at the event in Tarragona from June 12-13.
Other key speakers at the event include Jorge Lanza Perea, CEO of CLH, who will be speaking about oil logistics resilience and Alessandro Bartelloni, policy director of FuelsEurope, who will speaking about the company's vision on the market in 2050.
The theme for this year's event is European bulk liquid storage: Ensuring resilience in the supply chain. Other speakers on the programme include Phillip Ellett from the German Car Manufacturers Association VDA, Pedro Miras Salamanca, chairman of CORES (Spanish Oil Stockholding Agency) and Matthias Plötzke, policy advisor Fuels Policy and Climate Protection, MEW.
The FETSA AGM, now in its sixth year, is the only event of its kind to be run directly by tank terminal operators. For second year running it is jointly organised by market leading conference and exhibition organiser StocExpo & market leading publication Tank Storage Magazine.
The conference & exhibition will be held the day after the FETSA AGM, guaranteeing that all the major European terminal operators will be present. The event includes a networking lunch & dinner, a port tour as well as several site visits.
FETSA is the umbrella association for all European national tank storage associations and between them the associations represent 85 million m3 of independent storage capacity.
This year the event will be held at the well-known theme park PortAventura World in Tarragona, giving even more reasons for tank terminal professionals to attend.
View the full programme and find our more information here.
Exhibition booths are strictly limited. To book contact: firstname.lastname@example.org
Singapore LNG Corporation has completed modifications to its secondary jetty at its terminal on Jurong Island.
The company is now able to receive and reload small LNG ships of between 2,000 m3 and 10,000 m3 in capacity. This new small-scale LNG facility will help spur the development of the small-scale LNG market in various forms, for example, in the supply of LNG to isolate power plants in remote areas in the region, or in the delivery of LNG as bunker fuel to ships in the Port of Singapore.
The secondary jetty was originally designed to accommodate LNG ships of 60,000 m3 to 265,000 in size. Following a successful gas-up/cool-down and reload operation in June 2017, the company took the initiative to start modification works to its secondary jetty so that even smaller LNG ships could reload at the terminal. These modifications include the installation of a new marine loading arm and gangway, and new facilities for securing small LNG ships at the jetty.
Sandeep Mahawar, interim CEO and vice president of SLNG, says: 'We believe that there is good potential for the small-scale LNG market to flourish in this part of the world, and the timely completion of the SSLNG facility is an important step forward in SLNG's efforts to support this growth.
'It also serves to promote the development of LNG bunkering in Singapore, which is another potential growth area given Singapore's already well-established reputation as the top bunkering port in the world.
'As demand builds and there is a viable business case, SLNG may consider installing topsides at its tertiary jetty to accommodate more SSLNG reloads.'
ANOC has signed three framework agreements with Korean energy companies to explore upstream and downstream investment opportunities.
The agreements will explore upstream exploration and production opportunities, potential downstream investments and bunkering opportunities for both crude oil and LNG.
The agreements have been signed with the Korea Gas Corporation, the world's second largest buyer of LNG, which has conducted a feasibility study on LNG bunkering at Fujairah Port, the Korean National Oil Company, which has a 30% stake in ADNOC's Al Dhafra Petroleum Company and is seeking to increase oil storage in South Korea by 24 million barrels until 2025 and GS Energy, which has a 10% stake in AL Dhafra Petroleum and 3% stake in ADNOC Onshore.
The agreements were signed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNCO Group CEO and Kim Young Doo, KOGAS CEO, Yang, Su Yeong, KNOC CEO and Huh, Yongsoo, GS Energy CEO.
H.E. Dr Al Jaber says: 'Our discussion explored domestic and international growth opportunities across a range of areas, including oil and LNG bunkering, meeting the Republic of Korea's growing energy demands and attracting investment to our expanding upstream exploration and development operations and our downstream and gas expansion plans.
'As we successfully deliver our 2030 smart growth strategy, we will continue to work with partners who enable us to unlock and maximise value, contribute technology and help us secure access to the new centers of global demand.'
According to the International Energy Agency, South Korea is home to three of the 10 largest crude oil refineries in the world. As part of its efforts to become a major liquids storage and trading hub in northeastern Asia, KNCO, through joint ventures with other firms, has been building the country's first commercial terminals for crude oil and petroleum products at Yeosu and Ulsan, which will hold a total capacity of 36.6 million barrels.
The first facility, located in Yeosu in the southwestern region of the country, came online in 2013, with 8.2 million barrels of capacity. The other two facilities are being constructed in two phases in Ulsan in the southeastern region of the country and will bring 28.4 million barrels of capacity online by 2026.
Ineos has announced plans to invest £1 billion in its UK assets on various projects, including in the Forties Pipeline System.
The biggest investment being made is in the Forties Pipeline System, which comprised £500 million to transform the asset and extend the life of the pipeline by at least 20 years, into the 2040s.
Ineos intends to overhaul the reliability of the 500km pipeline system, including modernising the environmental systems and implementing the latest technology into its systems. This investment will rejuvenate FPS, delivering a long-term asset that meets the needs to North Sea oil and gas producers.
The system, which opened in 1975, is a strategic asset in the UK that can transport up to 600,000 barrels of North Sea oil onshore for refining every day. It transports 40% of the UK's oil and gas to the mainland.
Andrew Gardner, Ineos FPS CEO, says: 'North Sea oil and gas producers are telling us that they want to be in the North Sea well into the 2040s so we are making this commitment to be there with them.
'Following the acquisition of FPS in 2017 we are now embarking on a period of investment that will guarantee that the system can support them for decades to come.'
Other investments announced by the company include a £350 million investment in the Grangemouth site to develop a new steam and power plant as well as £150 million in Hull to construct a new vinyl acetate monomer plant.
Sir Jim Ratcliff adds: 'At an uncertain moment for the UK, Ineos has confidence in its businesses and is committed to continue investing in manufacturing and high skilled jobs in the UK.'
Robert Nuttal, principal engineer at Petronas talks about how the company uses innovative strategies to maximise storage safety and efficiency in the Middle East
What is your advice for terminal and operations managers to utilise risk-based inspection to monitor tanks' conditions?
RBI provides opportunities to rationalise corrosion integrity management programmes by adopting a proactive approach that satisfies regulatory requirements and rationalises the extent of monitoring and inspection.
The implementation should maintain safety and reduce the risk of unpredicted leakage. Personnel should trained in the use and application of the system.
What would the practical applications be when applying major safety standards and managing risks to reduce the chances of oil spills?
The move from prescriptive to risk-based integrity management requires the identification and rationalisation of monitoring and inspection programmes to address the risks. Assuming sufficient and correct monitoring/inspection data the application of RBI may enable extended operating windows. It becomes important to consider probability of detection with regards to operating conditions, monitoring, inspection and maintenance.
How can terminal managers protect their storage tanks further against corrosion?
Given service life requirements are often greater than 25 years a tank becomes a critical item. Corrosion control and management requirements from conception to abandonment must be identified and fulfilled. All specifications must be fully adhered to (foundations, drainage, materials, fabrication/welding, coatings, CP, etc.) and any impact or potential impact on the planned corrosion mitigation identified. A lack of redundancy makes unplanned loss of containment totally unacceptable. Required standards must be achieved and maintained.
What are your views on the importance of conducting detailed terminal auditing and inspection?
If a dead leg or small-bore fitting is not known to exist and/or operating/environmental conditions have changed it is not possible to manage any potential corrosion threat. Therefore, although demanding in both time and resources detailed auditing is a critical feature of an integrity management programme. Internal audits also facilitate transfer of knowledge and development. There is also a requirement to validate/demonstrate the initial risk assessment is correct and justified.
How can overall business operations be impacted with artificial intelligence in inspection and maintenance assets for tanks?
The application of AI potentially opens the inspection window by removing requirements for human entry / close human proximity to a tank. However, distortion of the tank bottom (rippling), disbondment of internal coatings, the location/attachment of sacrificial anodes and/or the presence of sediments/debris etc., may result in challenges and introduce unacceptable measurement errors – planning is required and personnel require training in the application of AI tools, operating requirements, interpretation of data and limitations.
What is your best advice for tanks and terminal managers to comply to inter tank spacing and scheduled maintenance?
In my opinion inter tank spacing is predominantly a health and safety issue. Generally it would not be expected to affect requirements for corrosion management, corrosion monitoring or corrosion rates. The value gained from scheduled maintenance practices should be reviewed in the light of inspection and monitoring records and rationalised based on risk.
Nuttal will be speaking at Tanks and Terminals 2019: Operations, Maintenance and Integrity on March 18-20 2019 in Dubai. Visit www.marcusevans-conferences-middleeastern.com for more information.
Pointe LNG has signed an engineering and technical services agreement with KBR for its proposed LNG liquefaction and export facility in Plaquemines Parish, Louisiana.
The agreement with KBR is to provide Pointe LNG with front end engineering design submittals and services as required to obtain Federal Energy Regulatory Commission approval.
James Lindsay, Pointe's co-founder, says: 'We are pleased to have KBR, a global EPC LNG contractor, as a partner, and this strategic agreement is an important step in the development of our project. We are thrilled about the opportunity to add KBR's decades of LNG experience on board as we bring Pointe LNG to market.'
Assuming that various contingencies and approvals are satisfied, construction is expected to begin in the first quarter of 2021 with initial operations expected in the first quarter of 2025.
Saudi Aramco aims to acquire a 9% stake in Zhejiang Petrochemical's 800,000 barrels per day integrated refinery and petrochemical complex.
This is part of three MoU's it has signed aimed at expanding its downstream presence in the Zhejiang province, one of the most developed regions in China.
The first agreement was signed with the Zhoushan government to acquire its 9% stake in the project. The second agreement was signed with Rongsheng Petrochemical, Juhua Group, and Tongkun Group, who are the other shareholders of Zhejiang Petrochemical.
Saudi Aracmo's involvement in the project will come with a long-term crude supply agreement and the ability to utilise Zhejiang Petrochemical's large crude oil storage facility to serve its customers in the Asian region.
Saudi Aramco CEO Amin Nasser says: The agreements demonstrate our commitment to the Chinese market and help enhance the strategic integration of our downstream network in Asia. They will further strengthen our relationship with China and the Zhejiang province, setting the stage for more cooperation in the future.'
Phase I of the project will include a newly built 400,000 barrels per day refinery with a 1.4 mmtpa ethylene cracker units, and a 5.2 mmtpa aromatics unit. Phase II will see a 400,000 barrels per day refinery expansion, which will include deeper chemical integration than Phase I.
Vopak, Geosel Storage and Fujairah Oil Terminal are among those who have been shortlisted for the 2019 Global Tank Storage Awards.
The Global Tank Storage Awards celebrate excellence, safety and innovation in the storage terminal industry.
Winners will be chosen by a cross selection of industry experts from companies, such as BP, Shell Trading, LBC, Oiltanking, Vopak & Koole and others.
The 2019 winners will be announced on March 26 in Rotterdam. Hosted by market leading publication, Tank Storage Magazine, the gala dinner & ceremony attracts 200+ terminal professionals each year, from as far as Saudi Arabia, India, Malaysia, South Africa, the US and all across Europe.
The shortlist is as follows:
Best Terminal Supplier
Advanced 3D Laser Solutions
Tank Terminal Training
Excellence in Terminal Optimisation Award
Advanced 3D Laser Solutions
Tank Terminal Training
Excellence in Environmental Protection Technology
Emerson: Rosemount Tank Gauging System – floating roof monitoring and 2in1 overfill prevention combined system
Ergil: Pressure vacuum/relief valve with flame arrester
Swiss Fire: Pi foam technology
Outstanding Terminal Safety Technology Award
Emerson: Automatic floating roof monitoring sytem
EnviroEye: Drain guard systems
McNetiq: Magnetic pipe support
Scully Signal Company: Intellitrol2 overfill prevention, ground verification and vehicle identification control monitor
Swiss Fire: Pi foam technology
Most Innovative Technology Award
Advanced 3D Laser Solutions
Amerapex: Contact-based inspection drones
AquaSmartXL: Aquatic drones
Atomiton: Digital terminal
Gpi: Coil Building System
Intero Integrity: OTIS-500 online tank inspection system
Kral: Z Series
McNetiq: Magnetic pipe support
SA Fire: Double chamber deluge valve model VDD
Swiss Fire: Pi foam technology
Best Port Award
North Sea Port
Port of Amsterdam
Port of Antwerp
Port of Marseille- Fos
Safety Excellence in Bulk Liquid Storage Award
Shell Haven Terminal
Ventspils Nafta Terminals
Vopak Deer Park Terminal
Most Efficient Storage Terminal Award
Euro Tank Terminal, Rotterdam
Fujairah Oil Terminal
Pertamina Labuhan Deli
Biggest Commitment to Environmental Protection Award
Ventspils Nafta Terminals
Employee of the Year
Steve Hearn, Integrity and Engineering, Valero
Ton Klinkenberg, Asset Improvement Manager, CEA Systems
Jaap Koomen, General Manager, VTTI South Africa
Colin Pittman, Commercial Director, Advanced Laser Solutions
Stuart Sharp, Head of Global Sales, Scanjet
Outstanding Achievement Award
Krien van Beck, Founder, RVB Tank Storage Solutions
Jerry Cardillo, President, Contanda Terminals
Kasper Castricum, General Manager,Arabian Chemical Terminal
Earl Crochet, Director of Engineering & Operational Optimisation,
Peter Davidson, Executive Director,
Tank Storage Association
Phil Myers, Founder, PEMY Consulting
The event, which is now a fixture in the global storage calendar, includes an all-inclusive drinks reception, a three-course dinner, captivating entertainment, a casino and much more. It is an exclusive opportunity to entertain clients & reward colleagues for their hard work throughout the year.
'The Global Tank Storage Awards ceremony is always exciting,' says Sandra De Mey, Commercial Manager, North Sea Port. 'We were really proud to win the Best Port Award in 2018, which has given us a significant amount of international recognition and media attention.'
For more information on the awards ceremony, including how to book tickets, visit: www.tankstoragemag.com/awards.
Construction of Oiltanking Grindrod Calulo and Transnet National Ports Authority's new liquid bulk tank terminal In the Port of Ngqura has started with the turning of the first sod.
This comes ahead of the planned decommissioning and rehabilitation of the existing liquid bulk facilities at the neighbouring Port of Port Elizabeth, which will pave the way for Ngqura's establishment as a new petroleum trading hub for southern Africa.
The new facility will provide storage and marine infrastructure to support the overall petroleum demand projections for South Africa.
Liquid bulk products will be transported to the Port of Ngqura via ship and piped to the tank terminal prior to local supply and/or local and global re-export. The new facility will service the oil majors, new entrants into the South African oil industry as well as international traders – all supporting the local shipping industry.
Civil, mechanical and electrical contractors will be appointed shortly.
Mkhuseli Faku, chairman of OTCALULO, says: 'Having been awarded the concession to develop a liquid bulk storage and handling facility in the Port of Ngqura, OTCALULO is now embarking on the first phase of construction.
'The terminal will be built to the highest international safety standards and provide exceptional service to its customers. OTCALULO looks forward to becoming a contributing member of the Nelson Mandela Bay community and expects to continue on its growth path in the years ahead.'
The terminal will comprise 790,000 m3 of capacity. Phase 1 will cater for dedicated jetty pipelines, bulk storage for up to 200,000 m3, road loading with a vapour recovery unit, firefighting facilities and site drainage facilities. Provision has been made for the receipt, storage and distribution of LPG.
Operations at the terminal are due to start at the end of 2020.
Shulami Qalinge, chief executive of TNPA, adds: 'The new tank terminal will develop the Port of Ngqura's liquid bulk capacity for commodities such as petroleum, diesel, jet fuel, illuminated paraffin and liquid petroleum gas. Once operational, the terminal will facilitate substantially increased throughputs over present volumes handled at Port Elizabeth due to Ngqura's deeper draught, which allows it to handle much larger vessels.
'The allocated 20 hectares site also provides ample space for future expansion of the terminal.'
Inter Pipeline's storage segment was impacted by challenging market conditions in Europe, affecting demand for capacity.
In its 2018 financial results, the company's funds from operations for its terminal division were down from $97.6 million in 2017 to $65.9 million in 2018 and its fourth quarter 2018 funds from operations were also down.
At the end of 2018, the company completed the acquisition of NuStar Energy's European bulk liquid storage business for $270 million. The acquired business consists of seven high-quality storage terminals strategically located throughout the UK and within the Port of Amsterdam. Historically, these assets have generated stable cash flow that is underpinned by a variety of cost-of-service and fee-based contracts.
Storage demand for certain petroleum products in Europe continued to be impacted by a backwardated commodity pricing environment. Average utilization rates during 2018 were 77% compared to 96% in 2017.
Utilisation in the fourth quarter averaged 68% across all terminals. Terminals in Sweden, the UK, the Netherlands and Germany all posted rates in excess of 90%. Unfavourable market conditions continued to impact Danish operations resulting in depressed utilization rates.
However, recent contracts have improved rates, particularly in Denmark. In January, utilisation rates across all European terminals rose to 78%.
Overall, Inter Pipeline's annual funds from operations totaled a record $1.1 billion, an increase of 10% compared to 2017.
Tank storage in Germany fulfils a very specific distribution role in the country's energy supply chain and is well-known internationally for being strong, stable and reliable.
Independent tank storage in Germany complements the supply of products being directly offered by German refiners and as a result operators locate their terminals over the whole landscape with hubs located in areas with a high population and critical transport infrastructure.
Individual terminals are also located along strategic transport routes such as inland waterways and railway lanes as part of their core distribution functionality.
In an interview with Tank Storage Magazine, Frank Schaper, executive director of German Tank Storage Association UTV, says: 'The structure of German tank storage providers is reasonably diversified. Currently it is a mix of international logistics companies and privately owned companies focused on the energy trading and supply market.
'Compared to countries such as Belgium, the Netherlands or Spain the German independent tank storage market has only minor shares in the storage of chemicals and gases.'
For several years the country has benefits from both a strong national and European economy with consistent annual GNP increases, which has increased energy consumption and the need for strategic storage volumes. However, Schaper says that this upward trend will not continue indefinitely.
'This development will not continue forever and consequently will also have an impact on inland consumption and distribution volumes.
'It could be a realistic scenario that in times of a declining economy in Europe, and in combination with a decreasing need for independent tank storage capacities, the market will be facing a natural consolidation process. At the end of this process, assets located at less important strategic locations combined with lower flexibility could be the victims of this consolidation process.'
But there are still plenty of opportunities for storage operators to take advantage of and strengthen their market position according to Schaper.
'A realistic and proven scenario could be improved cooperation with the petro(chemical) industry to ensure that independent tank storage facilities become an integral part of the industrial supply and logistics chain.'
Looking ahead, the ongoing energy transition discussion is one of the biggest challenges for the German tank storage sector, according to Schaper. 'As this industry is mainly focused on the handling and distribution of fossil energy carriers such as gasoline, diesel and heating oil, the politically triggered attempt to replace the combustion engine by the battery electric vehicle will have a huge impact on the industry.
'The German Tank Storage Association has started to address this risk to its members in order to sharpen the sensitivity. In parallel, we have addressed the message to politicians that a full electric society represents an unrealistic scenario. In this context, the association is supporting the further development and political acceptance of carbon neutral synthetic fuels.'
Schaper will be talking more about the tank storage sector in Germany on the morning of the first day of the StocExpo Europe conference from March 26 - 28 in Rotterdam. For more information visit www.stocexpo.com.
Total will become the anchor customer of the Tuxpan International Fluids Terminal, a refined oil products terminal in Mexico.
The agreement between the Total Atlantic Trading Mexico, a subsidiary of the oil major, Tuxpan Port Terminal and Monterra Energy, means that Total will have the largest capacity in the facility in Veracruz.
Total says that this improved access to the Mexican market means it will directly provide diesel and gasoline to its customers.
Isabelle Gaildraud, senior vice president for Americas at Total Marketing & Services, says: 'The large capacity committed by the group, combined with the competitive advantages of the terminal, will allow Total and its network of service stations to develop a leading role in the fuel retail market in Mexico City and the Valley of Mexico.'
The terminal is due to start operations in the second quarter of 2020.
Odfjell Terminals reports strengthened financial results in the fourth quarter 2018, with revenue growth in its Asian and US facilities.
Odfjell SE's terminal division delivered an EBITDA of $4.7 million in the fourth quarter of 2018 compared to $3.9 million in the previous quarter.
Revenues in the US region grow by 3% in comparison to the previous quarter thanks to a continuing high occupancy rate of 98% and increasing throughput at the Houston terminal.
The Asian region grow by 15% in comparison to the previous quarter with all terminals in the region contributing. The fourth quarter 2018 result was impacted by higher G&A related to the restructuring of the Odfjell Terminals organisation.
The company concluded the restructuring of the organisation in the fourth quarter. Odfjell Terminals B.V. and the terminal management companies are now wholly owned subsidiaries of Odfjell SE. Tank terminals are now operated through two joint ventures, one for the Asia terminals and one for the US terminals.
Total approved capital expenditure is $10 million for the next three years, of which $3 million is for maintenance and $7 million is for expansion.
Following the conclusion of the sale of Lindsay Goldberg's shareholding in Rotterdam and Antwerp, LG has entered into an agreement to sell its 49% shareholding in Odfjell Terminals US terminals to funds managed by Northleaf Capital Partners.
This transaction is expected to close during the first half of 2019.
Kirstian Mørch, CEO of Odfjell SE, says: '4Q18 concluded a challenging year for chemical tankers, but the market improved towards the end of the quarter. This is consistent with our view that the market has healthy fundamentals.
'We do expect continued volatility but we believe our markets have passed the bottom, and we therefore expect improved performance in 1Q19. We are pleased to welcome a new partner in our US terminals that positions us to further develop our US business.'
German LNG Terminal has signed another long-term commercial capacity agreement with a global LNG player.
The parties agreed on the commitment of a substantial part of the terminal's capacity. German LNG Terminal is the joint venture driving forward Germany's first LNG terminal in Brunsbuettel.
As a result of strong market demand, German LNG Terminal will apply for permits with a total terminal capacity of 8 bcma.
Rolf Brouwer, managing director of German LNG Terminal, says: 'German LNG Terminal is strongly moving forward. This additional commercial agreement demonstrates that the market has confidence in the prospects of LNG in Germany. The added value of the proposed multi-services terminal we offer to the market has been recognised and adoptedby the global LNG community.
'The German federal government has clearly recognised the benefits of LNG and, accordingly, has stipulated in its coalition treaty to develop LNG infrastructure in Germany.'
Preparations for the terminal's permitting approval process are well underway. Obtaining construction approval for the planned LNG terminal is one of the conditions for being able to make the final investment decision in late 2019. Construction work will then start in 2020 with the terminal being fully operational by the end of 2022.
Chris Commander, director of engineering at Howard Energy Partners, explains how project managers are expected to be experts in a range of different subjects and the tools they need to succeed in managing a terminal project
The storage terminal industry has experience significant transition in recent years. Gone are the days of having dedicated and specialised team members and the times of estimating managers, project engineers, and having on-staff construction managers and inspectors are long gone.
Today's project managers are now required to do everything; from estimating and procurement to cost control scheduling, administrative duties and travel agent. These project managers are stretched thin and their work continues to build daily. They work six to seven days a week, 16-hour days and are required to be the expert on a range of different subjects.
With this work load, it is imperative that the project managers of today are armed with the proper tools and reliable partners they need to succeed. This starts on the front end with estimating procedures and processes. Too often, an estimate is put together based on previous projects or based on costs per units with little to no design work up front.
Granularity is imperative to success. It is difficult to weigh this versus the time available to a project manager, but without the proper detail or design aspects such as process flow diagram's and layouts, the estimate is little more than an educated guess.
Evaluation of third-party engineering is equally important. Often companies look to EPC contractors for detailed engineering and construction due to lack of man-power and schedule. For some this may be the proper path to success. However, an evaluation should be completed to determine the right fit for the company. A cost evaluation including overhead and mark up should be done and compared to running the project in-house. These additional costs should be included in the budget. Above all, it is important to find an engineering company who can be considered part of the team and who 'gets' the owner's inner workings and desires.
When it comes to procurement, a cost analysis should also be evaluated to determine if utilising third party resources is more economical then doing this in-house. Developing specifications and approved manufacturing lists (AML) will not only provide the tools for project managers to succeed but will establish uniformity and quality control across all terminals.
Project manager requirements
As for the project managers themselves, they must be a 'jack of all trades'. It is vital that they research industry codes. They should be able to recite common historical costs to help their company's marketing/sales quickly access projects. They should learn how to develop industry colleagues who can be relied on for help when problems arise. They are the focal point for cost controls, and therefore should be armed with the tools to accurately track and forecast costs during construction. The project manager should surround themselves with construction managers and inspectors who they can trust, as they will be the eyes and ears for the project in the field.
The project manager role is not always the most praised job in the industry. Often, they are expected to be miracle workers and required to put their lives on hold, so the company can succeed. It is imperative to build a team they trust and likewise, learn how they can earn the trust of their peers. Above all, the project manager should be organised and develop the right tools to succeed.
Commander will be speaking more about managing storage terminal projects on the afternoon of the first day of the NISTM conference from April 2-4 in Orlando, Florida. For more information, visit www.nistm.com.
Vopak plans to expand its terminal in Vietnam with additional chemical storage capacity and its facility in Mexico with more petroleum products storage.
In its 2018 financial report, the company said that it will add 20,000 m3 of storage for chemicals at its terminal in Vietnam. The additional storage is expected to be commissioned in the first quarter of 2020.
Additionally, the company also plans to expand its terminal in Veracruz in Mexico with 110,000 m3 for the storage and handling of clean petroleum products. The expansion already has high commercial coverage and is expected to be fully commissioned in the fourth quarter of 2020.
In January, Vopak acquired an additional 35% share in Vopak Terminal Ningbo in China, bringing the total share in this chemicals terminal to 85% and effectively obtained control.
The company's IMO 2020 related projects are ongoing and progressing to schedule.
In 2018, the company achieved an EBITDA of €734 million, which was €10 million lower than 2017 as a result of oil mark conditions, partly compensated by the company's cost efficiency programme.
Occupancy rates were also lower than 2017, with 86% recorded compared to 90% due to market conditions at oil hub terminals, however other product market segments were stable.
Eelco Hoekstra, CEO, says: 'Given the market conditions in 2018, we delivered solid financial results and increased earnings per share by remaining focused on business opportunities. To meet the increasing global demand for the product we store, we made significant progress in shifting the portfolio and realising our digital transformation.
'We are excited that we have been able to announce significant expansion projects over the last few years, meeting new consumer demands. The execution of this strategy is leading to a further shift in our portfolio towards industrial terminals and terminals for chemicals, LNG, LPG and chemical gases. Expansion projects in these areas are currently underway in Malaysia, Indonesia, Canada, Brazil, and the Netherlands.
'We acquired a share in Pakistan's LNG import facility, commissioned the first phase of our new industrial terminal in Pengerang and expanded our chemical presence in Houston. End 2018, we delivered 1.1 million m3 of our 3.2 million m3 expansion program towards end 2019. In addition, we commenced major service improvement projects to strengthen our chemical storage positions globally and initiated investments in our oil hub terminals in preparation for the IMO 2020 bunker fuel regulations.
'We have also made progress in our digital transformation. Our new unique cloud-based digital terminal management system is now in place at the first terminals in Americas and Asia. We strengthened our cybersecurity programme. We believe that our digital transformation is key to growing our competitive edge and capturing the opportunities of the digital era.
'For 2019 and beyond, we continue to focus on delivery of short-term performance and seizing long-term opportunities, delivering value today and creating value for tomorrow for all stakeholders. We take pride in storing vital products with care for a growing world population.'
The company is also progressing with its strategic review, including testing the market value of its terminals in Algeciras, Amsterdam, Hamburg and Tallinn.
Vopak's 3.2 million expansion programme over 2018 and 2019, with high commercial coverage, continues. At the end of the fourth quarter of 2018, 1.1 million m3 was commissioned and 2.1 million m3 ill be delivered over the course of 2019. The company says that with this expansion programme along with its cost efficiency programme, it has the potential to significantly improve its 2019 EBITDA, subject to market conditions and currency exchange movements.