Kinder Morgan Texas Pipeline, DCP Midstream and an affiliate of Targa Resources have a final investment decision to proceed with the Gulf Coast Express Pipeline project.
The consortium has executed definitive joint venture agreements and have secured sufficient firm transportation agreements with shippers.
Around 85% of the project capacity is subscribed and committed under long-term, binding transportation agreement, and the partners expect that the remaining capacity will be subscribed by early this year.
The $1.7 billion project is designed to transport up to 1.92 billion cubic feet per day of natural gas. It originates at the Waha Hub near Coyanosa, Texas in the Permian Basin and terminating near Agua Dulce, Texas.
It is expected to be in service in October 2019 and construction is planned to start in the first quarter of 2018.
One of the ultimate shareholders of Oiltanking Odfjell Terminal Singapore has completed the transfer of its shares in the facility to an infrastructure fund managed by Macquarie Infrastructure and Real Assets (MIRA).
Odfjell Terminals has completed the share transfers following the announcement in May last year of its intent to sell.
Following the transfer, the terminal's name has been changed to Oiltanking Singapore Chemical Storage. Both Oiltanking and MIRA each have a 50% shareholding in the facility.
The terminal, on Jurong Island, offers 82 tanks with capacities ranging from 800 m3 to 18,000 m3, making up a total capacity of 402,000 m3.
Zenith Energy has completed the acquisition of Arc Logistics Partners, with some equity from Warburg Pincus and Kelso and other investors financing the deal.
Zenith US received a line of equity of up to $625 million led by Warbug Pincus and Kelso, alongside management and other investors. Some of this is being used to finance the acquisition.
Zenith plans to further develop Arc's existing 21 terminals and focus on new developments throughout North America.
Zenith International will continue to pursue further expansion opportunities in key international markets.
Jeff Armstrong, CEO of Zenith, says: 'We are very pleased to have successfully completed the acquisition of Arc Logistics, which gives us a strong foothold into the US terminaling market with 21 terminals in 12 states, providing critical services to a broad range of customers in key markets across the country.'
Glencore has completed the sale of a 51% interest in HG Storage International (HGSI) to HNA Innovation Finance Group.
HGSI is a new entity that has consolidated Glencore's petroleum products storage and logistics businesses into a global portfolio of high-calibre assets, located in strategic trading hubs across Europe, Africa, the Middle East and the Americas.
Glencore and HNA has also interested into a second agreement, whereby three of the original transaction assets located in the US will be transferred into HGSI in 2018.
Of the original purchase price of $775 million, $579 million was closed at the end of December.
HGSI plans to expand its footprint globally through acquisitions and organic growth supported by its shareholders.
Shell Midstream Partners has acquired five products terminals and a partial interest in four pipelines.
The company entered into a purchase and sale agreement to acquire from wholly owned subsidiaries of Shell for five products terminals as well as partial interest in two Gulf of Mexico corridor pipelines and two strategic onshore pipelines for $825 million.
The acquisition closed in December 2017.
The assets include:
- 100% interest in Triton West, which owns the Anacortes, Colex, Des Plaines, Portland and Seattle products terminals, which all have take-or-pay contracts with wholly owned subsidiaries of Shell.
- A 22.9% interest in Mars Oil Pipeline Company and a 22% interest in Odyssey Pipeline, both of which serve high growth areas in the Gulf of Mexico. Shell Midstream owns 71.5% of Mars and 81% of Odyssey.
- A 10% interest in Explorer Pipeline Company and a 41.48% interest in LOCAP.
Varo Energy has acquired NWB Nord-und Westdeutsche Bunker, an inland and coastal supplier of marine gasoil, diesel and lubricants in Germany.
The acquisition from Bomin Bunker Holding bolsters Varo's strategy to grow its activities in the fuels value chain by building a network of refineries, storage tanks and distribution channels.
Once complete, the move will expand Varo's activities in Northern Germany with the addition of eight bunker locations in Hamburg, Cologne, Minden, Bremen, Passau, Brunsbüttel, Brake and Magdeburg as well as seven barges and two bunker stations.
The total added bunker capacity will be 3,000 m3, bringing total capacity to 21,000 m3.
Varo is a significant plater in the European inland waterways bunkering business in the Netherlands and Germany, operating under Reinplus Fiwado.
The transaction is expected to be complete during the first quarter of 2018.
Roger Brown, CEO of Varo, says: 'The assets we are acquiring from Bomin Bunker fit well into our growth strategy and enables us to geographically expand our presence in order to better serve our customers looking to buy bunker fuels or lubricants in Northern Germany.'
TransMontaigne has completed the acquisition of the Martinez and Richmond Terminal from Plains All American Pipeline.
As a result of the acquisition, TransMontaigne has expanded its storage and terminaling footprint into the San Francisco Bay Area refining complex. Plains will continue to operate the terminals on behalf of TransMontaigne until it receives all permits and approvals necessary to operate the terminals. This is expected to be complex by the end of February 2018.
A strategic storage hub is planned for the distribution of petroleum products in Tanzania and other East African countries.
The plans emerged following the commissioning of a storage terminal with 36 million litres of capacity by the Sahara Group in Tanzania.
The facility is located in Dar Es Alaam and will be operated by Sahara Tanzania. It has capacity of 18 million litres for automotive gas oil and 18 million litres for Premium Motor Spirit. It also has six loading arms for PMS and six loading arms for AGO.
Raymond Lusekelo, supply manager at the Petroleum Bulk Purchasing Agency, said at the official commissioning of the facility that the company entering the oil and gas sector in Tanzania was remarkable at a time when the administration of His Excellency John Magufuli was helping to drive significant investment in the sector.
Terminal manager Taofik Lawal added: 'We bring smart solutions to energy needs by deploying the best possible technology as well as distribution and storage facilities that are world class. Our operations are guided by best international practice and we are passionate about total quality management and excellent service delivery.
'The energy sector in Tanzania has the potential to be the best in East Africa. Key investments like the one we are witnessing today are required in infrastructure and technology to enhance value and drive excellence.'
Total refined product stocks at the UAE port of Fujairah stood at 16.62 million barrels in the week to December 11, down 8.6% from the previous week, according to data from the Fujairah Energy Data Committee.
The decline was primarily down to a significant draw on heavy distillates, S&P Global Platts Analytics said in a report. In the previous week stocks had risen to an 11-week high of 18.18 million barrels. Stocks of heavy distillates and residues fell 13.4% in the week to December 11 to 10.664 million barrels. This was the first drop in four weeks, snapping the recent rebound from the record low of November 13. As much as half of the fuel oil volumes departing Fujairah in the past week were heading for Singapore, local sources said.
Stocks of middle distillates are still close to recent lows, despite a rise of 16% week on week to 1.406 million barrels. This was the first week-on-week rise in middle distillate stocks after three consecutive record lows. Medium-sulfur gasoil continues to see ample demand in the Middle East, North Africa and South Asia, while low-sulfur diesel is relatively weaker due to the closed arbitrage.
Disruptions at the Forties pipeline are expected to have little impact on the European diesel market due to ample supply, but is affecting petrol. The diesel arbitrage from the US Gulf Coast to Europe has been closed in recent weeks, with diesel in fact moving across the Atlantic in the opposite direction towards Latin America and the US Atlantic Coast, Platts Analytics said.
Stocks of light distillates edged down 2.2% to 4.555 million barrels, in line with recent levels. Petrol market sentiment was supported by possible supply tightness both East and West of Suez. A fire at an RFCC unit at Indian Oil's Paradip refinery added to expectations of supply tightness, with the Middle East already seeing a number of refinery maintenance outages.
Recent weeks have seen European petrol drawn to meet strong Middle Eastern demand, but this flow could now be reduced, possibly pulling Indian barrels to the region.
The EU will invest €101.4 million in the construction of a LNG terminal in Krk, Croatia.
The €101.4 million grant will contribute towards the overall estimated costs of €383.6 million.
The LNG terminal will first operate as an offshore floating storage and regasification unit with a yearly capacity of at least two billion m3. It will increase the security of gas supply in central and south eastern Europe.
It will also improve the competitiveness in the region and, as a priority project under the Central and South Eastern Europe Energy Connectivity initiative.
Commissioner Miguel Arias Cañete says: 'This investment will not only allow for the supply of natural gas to Croatia and Hungary: it will also increase the diversification of energy sources of central and south eastern Europe, and give an economic lift to the region.'
Harvest Pipeline Company and Vitol have signed an agreement to jointly develop a crude oil terminal in the Port of Corpus Christi.
The agreement is in response to increased demand for crude transportation from South Texas and the Permian Basin as well as to help satisfy the growing need for export capacity along the Texas Gulf Coast.
The project will complement Harvest's existing South Texas business by providing Eagle Ford barrels a new terminal connection from Harvest Midway junction. It will also provide a new waterborne outlet for the growing number of Permian barrels that are seeking access to international markets.
As more barrels flow to Corpus Christ from the Permian Basin, additional storage will be developed at the emerging Midway hub.
Mark Couling, head of crude oil for Vitol, says: 'Crude demand, particularly in emerging markets, continues to grow and US shale has an important role to play in satisfying this demand. Our new pipeline and terminal will facilitate the efficient delivery of US crude to global markets, thereby increasing marketing opportunities and optimising value for US producers.'
The companies have reached an agreement with the port for the location of the terminal development and dock access. They are also reviewing the option of constructing a private dock for the parties' sole se at the oil terminal facility.
Barrels will have access to the terminal via a new 16-inch lateral pipeline.
Oiltanking has commissioned a new terminal in Matola, Mozambique as well as increasing its ownership share in Oiltanking Mozambique.
By increasing its ownership share in Oiltanking Mozambique, the company will expand its investment in the ports of Matola and Beira. It has increased its direct stake from 60% to 80%.
The terminal in Matola received its first vessel on November 26, 2017. The facility's initial storage capacity will be 58,600 m3, with land available for further development. It has access to a jetty with a draft of 11.5 meters.
It is equipped with rail and truck loading facilities to serve southern Mozambique and neighbouring countries including Swaziland, Zimbabwe, Botswana and the northern provinces of South Africa.
The company is planning to build a large-scale pressurised LPG terminal on the available land in Matola of up 33,000 m3, as well as adding another 70,000 m3 of liquid storage.
Additionally, another terminal is planned by Oiltanking in Beira. It is currently in the development stage, but it will facilitate gas and petroleum product imports into the central part of Mozambique, Zimbabwe, Malawi, Zambia and the Democratic Republic of Congo.
Lo Vanhaelen, MD of Oiltanking Matola, says: 'Mozambique is one of the main transit hubs for petroleum products on Africa's east coast. The recent transaction and other projects will further strengthen Oiltanking's presence in Africa and enhance our ability to serve new market segments on the east coast of the continent.'
PT2SB executives have signed a $1.25 billion senior financing agreement with a banking syndicate of nine international banks.
The banks will be used to finance the PT2SB industrial terminal in Pengerang, Malaysia, a joint venture between Petronas, Dialog, the state of Johor and Vopak.
Construction work on PT2SB started in early 2015 and it is scheduled for commissioning in various phases during the first half of 2019.
It will predominantly serve the Petronas refinery petrochemicals integrated development project as its main customer. It will have an initial storage capacity of 1.65 million m3 for crude, refined products, petrochemical products and LPG. The marine infrastructure includes 12 berths and the draft of 24 meters can also accommodate VLCCs.
The project’s costs of $1.6 billion will be 20% funded with equity contributions by the shareholders and 80% is provided in the form of project financing through the banking syndicate.
Enterprise Product Partners plans to convert one of its NGL pipelines to crude oil service.
The pipeline currently transports NGL's from the Permian Basin to the Texas Gulf Coast and the conversion is expected to be completed in the first half of 2020.
The conversion will provide Enterprise with total crude oil pipeline capacity of more than 650,000 barrels per day from the Permian Basin to Enterprise's crude oil hub in the Houston area.
Enterprise has three existing NGL pipelines that stretch from the Permian Basin to the Texas Gulf Coast: the Seminole Blue, Seminole Red and Chaparral.
The Shin Oak NGL pipeline, which is expected to be complete in the second quarter of 2019, provides the company with the flexibility to divert NGL volumes from at least one of its existing NGL pipelines onto Shin Oak and repurpose the vacated NGL pipeline to crude oil service. It is currently evaluating which NGL pipeline to repurpose.
A.J Teague, CEO of the general partner of Enterprise, says: 'We have had strong demand for crude oil transportation, storage and marine terminal services for crude oil production from the Permian Basin.
'This repurposing of an NGL pipeline to crude oil service is another example of our system flexibility.'
Castleton Commodities International and Junction Energy Capital have broke ground on a $128 million oil storage and distribution facility.
The Corpus Christi Marine Storage Terminal, located on the Joe Fulton Corridor next to the M&G Chemicals plant in the Port of Corpus Christi, has been designed to load oil and gas products piped in from the Permian Basin and Eagle Ford shale plays.
It is expected to be operational in 2019.
A marine facility included in the construction project will provide docking for ships. It will store 4.5 million barrels of crude oil and process 100,000 barrels per day. Three docks will be built to load tankers for shipping.
The first phase of the project includes one dock and six storage tanks that will hold 250,000 barrels each.
Rob Johnson, of Junction Energy, says: 'The idea is to take barrels being produced in the Permian and Eagle Ford, ship them through the facility, load them on the vessels for the ultimate transport to other parts of the US and the world.'