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Terminal News


Terminal News
September 7, 2017
Fujairah: Oil product stocks up 2.5% week on week
Fujairah's commercial stocks of refined oil products rose 2.5% to 19.816 million barrels in the week to Monday (September 4), remaining below 20 million barrels for a second week since large-scale refinery shut-downs in Texas related to Hurricane Harvey sent shock waves through global markets for oil products...

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Fujairah's commercial stocks of refined oil products rose 2.5% to 19.816 million barrels in the week to Monday (September 4), remaining below 20 million barrels for a second week since large-scale refinery shut-downs in Texas related to Hurricane Harvey sent shock waves through global markets for oil products.

Total stocks at the UAE Arabian Sea port were buoyed by a 540,000 barrels build in combined stocks of light and middle distillates, data released Wednesday (September 6) by the Fujairah Energy Data Committee showed. Meanwhile, heavy distillate and residue stocks, which make up more than half of total Fujairah oil product stocks, dipped 53,000 barrels, with stocks remaining broadly flat for a second consecutive week.

Stocks of light distillates, predominantly petrol and naphtha, rose 5.3% to 5.68 million barrels from a 10-week low of 5.394 million barrels the previous week when they had fallen 1.393 million barrels, or 20.5% - the largest weekly drop in terms of volume and the second largest as a percentage, since S&P Global Platts started tracking Fujairah stock data in January. Trading sources last week cited naphtha volumes headed for Asia as petrochemicals feedstock as the main driver for the large draw in the week ended August 28, which nonetheless also followed hard on the heels of the emergency shutdown of about 25% of US Gulf Coast refining capacity due to heavy floods in Texas and Louisiana after Harvey made landfall.

HARVEY EFFECT RECEDES

This past week, while there was little apparent reason for Asian demand for naphtha to take a sudden downturn, the European petrol draw across the Atlantic to meet hurricane-related US shortfalls had started to ease. US Gulf Coast refineries and ports were in the process of returning to service while Colonial Pipeline, the largest US refined products pipeline and which had also been closed due to floods, resumed operations from Houston.

In the east of Suez market, planned refinery maintenance in Indonesia was further supporting Asian demand for light

distillates, while differentials between Mean of Platts Singapore (MOPS) and Free On Board (FOB) Fujairah petrol prices were little changed over the week. Fujairah stocks of middle distillates rose 8.1% to 3.402 million barrels,

despite supply disruption of gasoil cargoes from the US Gulf Coast to Northwest Europe and the Mediterranean due to

Harvey resulting in lower than average stock levels in the Amsterdam-Rotterdam-Antwerp region.

However, high freight rates to move cargoes to Europe from the Middle East were keeping a lid on trade flow between the two regions. At the same time, rising gasoil outflows from India, which have exacerbated the supply overhang in the Asian market amid the current low demand during the monsoon season, may have contributed to the build in Fujairah middle distillate stocks.

In Singapore, middle distillate stocks have also risen, reaching a three-month high of 13.768 million barrels last week.



FUJAIRAH BUNKERS DISCOUNTED VERSUS SINGAPORE

Fujairah's stocks of heavy distillates and residues totaled 10.734 million barrels on Monday, down 0.5% week on week.

Demand for bunker fuel in both Fujairah and Singapore has been healthy over the past week. Prices for Fujairah 380

CST delivered bunker fuel, however, slipped to a discount to Singapore last week. It traded at a discount of about

$4/mt, down from a $1.25/mt premium the previous week and from $2-$3/mt the week before that.

The first-month/second-month backwardated structure for Arab Gulf 180 CST high sulfur fuel oil swaps widened

further to an eight-week high of $1.50/mt from $1/mt in the previous week as increasing volumes were shipped to

Singapore from the Middle East.



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Terminal News
September 6, 2017
PetroChina forms JV to build storage tank
PetroChina Fuel Oil has formed a joint venture with Qingdao Port International to build a crude oil storage tank at the Dongjiakou port area. According to local reports, the joint venture project will be engaged in the storage and transmission of oil products, including crude oil, fuel oil, diluted asphalt and wax oil...

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PetroChina Fuel Oil has formed a joint venture with Qingdao Port International to build a crude oil storage tank at the Dongjiakou port area.

According to local reports, the joint venture project will be engaged in the storage and transmission of oil products, including crude oil, fuel oil, diluted asphalt and wax oil. The project will have an investment value of RMB300 m, of which Qingdao Port will take a 49% stake.

The port says in a statement: ‘Both parties will leverage on their respective advantages and further improve the oil storage and transportation facilities in Dongjiakou Port Area, so as to further enhance the core competitiveness of the Port of Qingdao in respect of transportation of oil products.’



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Terminal News
September 6, 2017
Oil & gas industry starts recovery from storm Harvey
Picture credit: NASA
Storage and pipeline operators, refineries and ports have resumed operations in the wake of storm Harvey.The storm, which at its peak, was a category 4 hurricane, resulted in the deaths of at least 60 people, and left thousands of people homeless.Several companies and organisations have pledged donations for the Harvey relief effort...

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Picture credit: NASA

Storage and pipeline operators, refineries and ports have resumed operations in the wake of storm Harvey.

The storm, which at its peak, was a category 4 hurricane, resulted in the deaths of at least 60 people, and left thousands of people homeless.

Several companies and organisations have pledged donations for the Harvey relief effort. Exxonmobil has pledged $9.5 million, Crestwood Equity Partners plans to donate $125,000, Dow Chemical Company has pledged $1 million and Anadarko has donated $1 million. Additionally, BP, Chevron, ConocoPhillips, NuStar and Phillips 66 have also pledged donations.

In addition to halting operations and impacting global energy markets, in the week after the storm hit, more than one million pounds of dangerous air pollutants were released from oil refineries and chemical plants along the Gulf Coast, according to the Centre for Biological Diversity.

On Tuesday, August 29, rising water levels within the Guadalupe river system washed out four storage tanks at one of ConocoPhillips' well sites in DeWitt County, Texas.

The tanks are used to temporarily store produced oil and produced water from the well. The tanks held approximately 385 barrels of oil and 76 barrels of produced water but the actual spill volume has not been determined. At the time, the well remained shut-in, so no oil and water were flowing to the tanks.

The company says that all applicable federal and state regulatory agencies were notified immediately.

In the early hours of August 31, Arkema was notified of two explosions and black smoke coming from its plant in Crosby, Texas. An evacuation zone of 1.5 miles from the plant had been previously established and has since been removed. It shut down operations on the Friday before the storm made landfall.

The company says: 'Our site followed its hurricane preparation plan in advance of the recent hurricane and we had redundant contingency plans in place. However, unprecedented flooding overwhelmed our primary power and two sources of emergency backup power. As a result, we lost critical refrigeration of the products on site. Some of our organic peroxides products burn if not stored at low temperatures.'

The site remains closed.

Operations resume

According to S&P Global Platts, on September 5, Colonial Pipeline, the largest US refined products pipeline, resumed petrol shipments on its Line 1 from Houston and Pasadena, Texas.

It resumed pumping of diesel and jet fuel shipments on its line two on September 4.

Enterprise Products Partners has restarted substantially all of its major assets impacted by the storm, including its ethane and LPG loading terminals on the Houston Ship Channel.

Plans to allow crude carriers into the Houston Ship Channel are likely to be delayed as a result of a sunken dry dock in the waterway.

The Port of Corpus Christi has been opened, but some restrictions remain in place as it continues to survey all channels and inlets in the harbour.

Magellan has restarted two long-haul Texas crude oil pipelines – Bridge Tex and Long Horn and it has also started up a 180,000 b/d refined products pipeline that starts at its East Houston terminal in Texas.



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Terminal News
September 6, 2017
Magellan Midstream Partners has announced plans to build a new Delaware Basin pipeline for crude oil and condensate.The 60 mile pipeline will run from Wink to Crane, Texas, which serves as an origin to its Longhorn pipeline. The new Wink pipeline will have an initial capacity of 250,000 barrels per day, with the ability to expand to more than 600,000 barrels per day if there is demand for it...

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Magellan Midstream Partners has announced plans to build a new Delaware Basin pipeline for crude oil and condensate.

The 60 mile pipeline will run from Wink to Crane, Texas, which serves as an origin to its Longhorn pipeline. The new Wink pipeline will have an initial capacity of 250,000 barrels per day, with the ability to expand to more than 600,000 barrels per day if there is demand for it.

The project also includes the construction of a new terminal at Wink, which will offer broad inbound and outbound pipeline access to parties that connect to the facility.

It is expected to cost $150 million and is due to be operational in mid-2019.

Michael Mears, CEO, says: 'Magellan is known in the industry for its independent service provider business model and is ideally situated to meet growing industry demand for a crude oil and condensate pipeline system with access to customers originating from the Delaware Basin.'

The new pipeline segment will offer direct service from the Delaware Basin to the Crane origin of Magellan's Longhorn pipeline, which provides crude oil and condensate transportation service to the Houston and Texas City refining complex and marine export facilities.

In addition, this pipeline segment will be able to provide service from the Delaware Basin to the new crude and condensate line to Corpus Christi, Texas, that has been proposed by Magellan as well as others in the industry.

The company is also assessing additional pipeline and terminal investments in West Texas to strengthen and enhance its overall crude oil service offerings.



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Terminal News
September 6, 2017
Puma reports increased EBITDA
Puma Energy has reported a 5% increase on its EBITDA in its second quarter financials.Gross profit grew by 7% to $416 million, up from its second quarter 2016 results, due to stable volumes and improved unit margins from downstream activities.EBITDA increase to $191 million compared to the same period last year...

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Puma Energy has reported a 5% increase on its EBITDA in its second quarter financials.

Gross profit grew by 7% to $416 million, up from its second quarter 2016 results, due to stable volumes and improved unit margins from downstream activities.

EBITDA increase to $191 million compared to the same period last year.

The company says that storage capacity remained stable, while it started operations at five additional airports, mainly in Africa and the Asia Pacific.

Denis Chazarain, CFO, says: 'The group delivered another solid quarter.

'Capex has decreased significantly across regions and business segments, as several major construction projects have been completed. Majority of the capex in the first half of 2017 relate to storage construction projects in Ghana and Angola, which are both due to be completed during the second half of 2017.

'Furthermore, we continued the construction of Rostov airport in Russia, and development of the retail network in Africa, the Americas and Asia Pacific.'



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Terminal News
September 4, 2017
Pavilion & Singapore LNG sign storage agreement
Singapore LNG Corporation and Pavilion Gas have signed an agreement for LNG storage and reload services at the SLNG Terminal on Jurong Island.As part of the agreement, Pavilion Gas has rights to access tank capacity on a segregated basis at the facility for LNG storage and reload services over the next 24 months...

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Singapore LNG Corporation and Pavilion Gas have signed an agreement for LNG storage and reload services at the SLNG Terminal on Jurong Island.

As part of the agreement, Pavilion Gas has rights to access tank capacity on a segregated basis at the facility for LNG storage and reload services over the next 24 months. This supports higher volume of LNG trading activities, small-scale LNG opportunities, LNG breakbulk and vessel cool-down services.

Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas, says: 'With increased spot trading volume, this will strengthen Singapore's position as an Asia LNG hub.

'We will work closely with SLNG to facilitate multi-user access of the SLNG terminal for LNG trading activities. Pavilion Gas is well-positioned to expand and grow its LNG trading presence regionally and globally.'

John Ng, CEO of SLNG, adds: 'With the enhanced capacity and capabilities at our terminal, such as the newly-installed LNG truck loading facility and upcoming additional tank capacity, SLNG will be better able to serve industry players who are keen on using Singapore as a platform to grow their LNG businesses.'



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Terminal News
September 4, 2017
Fujairah's commercial stocks of refined oil products fell 6.6% to 19.329 million barrels in the week to Monday, August 28. They sank below 20 million barrels for the first time in 11 weeks on a decline more than 20% in light distillate stocks, as large-scale refinery shut-downs in Texas sent shock waves through global markets for oil products, especially petrol...

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Fujairah's commercial stocks of refined oil products fell 6.6% to 19.329 million barrels in the week to Monday, August 28. They sank below 20 million barrels for the first time in 11 weeks on a decline more than 20% in light distillate stocks, as large-scale refinery shut-downs in Texas sent shock waves through global markets for oil products, especially petrol.

Total stocks at the UAE port fell despite a slight build in stocks of heavy distillate and residues, which constitute more than half the total volume of oil products stored there, data released Wednesday, August 30 by the Fujairah Energy Data Committee (FEDCom) showed.

Stocks of light distillates, predominantly petrol and naphtha, fell on the week by 1.393 million barrels, or 20.5%, to 5.394 million barrels. It was the largest weekly drop in terms of volume, and the second largest as a percentage, since S&P Global Platts started tracking Fujairah stock data in early January.

Trading sources cited naphtha volumes headed for Asia as the main driver for the draw. Naphtha demand in Asia is rising on higher petrochemical margins. The fourth quarter is typically the peak period for Asian naphtha demand, which should result in an increasing draw on Middle East supply to Asia.

HARVEY GOES GLOBAL

However, tighter global petrol supplies in the wake of Hurricane Harvey may also already be having an impact on light distillate stocks as far away as the Middle East, including at Fujairah, which during the past few years has become a major oil products storage hub for the region.

Hurricane Harvey, downgraded to a tropical storm since making landing near Corpus Christi, Texas, has lingered for days in the Houston region, bringing catastrophic floods and causing many refineries on the US Gulf Coast to shut, either as a direct result of flooding or due to safety concerns. US petrol and middle distillate supplies, and exports have consequently fallen sharply and it is still unclear when refinery operations will return to normal.

Currently, petrol is seeing some tightness globally across all major regions. Robust demand from India and the Middle East is continuing to pull petrol from Europe, the more so in the Middle East, where the region's biggest refinery, Abu Dhabi's 800,000 b/d Ruwais refinery, is undergoing major repairs, expected to last until 2019, after a January fire severely damaged a residual fluid catalytic cracking unit.

That has reduced the refinery's yields of light and middle distillates. Demand from Indonesia, the Philippines and Vietnam is drawing down gasoline stocks in Asia.

In this environment, the aftermath of Hurricane Harvey could mean European petrol drawn across the Atlantic to meet shortfalls in the US, reducing European volumes available for export to the Middle East. The result could be a further draw on gasoline stocks at Fujairah and elsewhere in the region, where petrol demand is due to start a seasonal increase as sweltering summer temperatures recede to levels more conducive to outdoor activity.

Bullish sentiment in the region's petrol market is already evident in the backwardation of first/second month time spreads for Arab Gulf petrol 95 swaps to $1.88/b, the highest so far this year.

SUPPLY DISRUPTIONS

Fujairah stocks of middle distillates also fell on the week ending August 28 by 39,000 barrels, or 1.2%, to an 11-week low of 3.148 million barrels. The hurricane-related supply disruptions to US distillate exports might mean more diesel, gasoil and jet fuel moving West of Suez.

The stream of distillate cargoes from the US Gulf Coast to the Mediterranean and Northwest Europe has all but halted in the past eight days as the storm forced the closure of US Gulf Coast terminals and ports, as well as refineries. In addition, European middle distillate stocks are low due to increased summer demand.

Fujairah's stock of heavy distillates and residues totalled 10.787 million barrels on August 28, edging up 76,000 barrels or 0.7% on the week. Demand for bunker fuel in both Fujairah and Singapore has been healthy over the past week. Fujairah 380 CST delivered bunker fuel continued to be priced at a premium of about $1/mt over Singapore, down from $2-$3/mt the previous week.

The first/second month time spread for Arab Gulf 180 CST high sulfur fuel oil swaps was pegged at a seven-week high backwardation of $1/mt, with a possible shortfall in US fuel oil exports due to the hurricane seen as a key supporting factor.

At the same time, fuel-oil demand in the Middle East has been more robust than usual this summer because Saudi Arabia has been substituting fuel oil for part of the crude it burns at its power stations in summer to support peak demand for electricity to run air-conditioning. The kingdom does not have enough gas to meet peak summer demand from its predominantly thermal power plants while also supplying increasing direct demand for gas from its industrial and petroleum sectors.

Nonetheless, with summer drawing to a close, reducing local fuel oil demand, the Middle East will be well positioned to export the product in the coming weeks and months. Moreover, S&P Global Platts has estimated that about 230,000 mt/month of petrol production capacity has been lost at Ruwais since January due to the fire, which means a substantially increased yield of fuel oil from the refinery if crude processing remains constant.



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Terminal News
August 31, 2017
Storage spill & explosions as Harvey continues to thrash Gulf Coast
Picture credit: NASA
Tropical Storm Harvey continues to wreak havoc along the Gulf Coast.At least 33 people have been killed in eastern Texas in the aftermath of the storm as the region continues to experience catastrophic flooding.Heavy rainfall is expected from Louisiana to Kentucky over the next three days and many oil majors, pipeline and storage operators have shut down or halted operations as a result...

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Picture credit: NASA

Tropical Storm Harvey continues to wreak havoc along the Gulf Coast.

At least 33 people have been killed in eastern Texas in the aftermath of the storm as the region continues to experience catastrophic flooding.

Heavy rainfall is expected from Louisiana to Kentucky over the next three days and many oil majors, pipeline and storage operators have shut down or halted operations as a result.

On Tuesday, August 29, rising water levels within the Guadalupe river system washed out four storage tanks at one of ConocoPhillips' well sites in DeWitt County, Texas.

The tanks are used to temporarily store produced oil and produced water from the well. The tanks held approximately 385 barrels of oil and 76 barrels of produced water but the actual spill volume has not been determined. At the time, the well remained shut-in, so no oil and water were flowing to the tanks.

The company says that all applicable federal and state regulatory agencies were notified immediately.

Colonial Pipeline

As of Wednesday, August 30, Colonial Pipeline's facilities west of Lake Charles, Louisiana are temporarily out of service due to the storm. Due to supply constraints and the suspension of its facilities, Colonial's line 2, which transports diesel and aviation fuels, was suspended Wednesday night. Line 1, which transports petrol, was suspended on Thursday, August 31.

The company says once it is able to ensure that its facilities are safe to operate and refiners in Lake Charles and points east have the ability to move product to Colonial, its system will resume operations.

Alan Gelder, Wood Mackenzie vice president research, says that the closure is a major disruption of the US East Coast and that US East Coast buyers are 'scrambling for supplies'.

'Typical Colonial Pipeline volumes are equivalent to Europe's petrol exports, so these volumes will be difficult to replace and will require supplies from distant regions if the outage is prolonged.

'At the peak of the disruption, 4.5 million bpd of refining capacity was shutdown. We estimate that 2 million bpd of petrol and 1.4 million bpd of distillates have been lost in the US Gulf Coast.'

Explosions at Arkema

In the early hours of Thursday morning, Arkema was notified of two explosions and black smoke coming from its plant in Crosby, Texas. An evacuation zone of 1.5 miles from the plant had been previously established. It shut down operations on the Friday before the storm made landfall.

The company says: 'Our site followed its hurricane preparation plan in advance of the recent hurricane and we had redundant contingency plans in place. However, unprecedented flooding overwhelmed our primary power and two sources of emergency backup power. As a result, we lost critical refrigeration of the products on site. Some of our organic peroxides products burn if not stored at low temperatures.

'Organic peroxides are extremely flammable and, as agreed with public officials, the best course of action is to let the fire burn itself out.'

Organic peroxides are used in applications such as making pharmaceuticals and construction materials.

According to S&P Global Platts, Motiva, Total and Valero have closed their Port Arthur plants, however Valero is in the process of restarting its Corpus Christi and Three Rivers refineries and Marathon is restarting its Texas City plant.

The Houston Ship Channel was closed Wednesday to incoming and outgoing traffic and port condition Zulu remains for Louisiana port Lake Charles and Texas ports Beaumont, Nederland, Orange, Port Arthur, Port Neches, Sabine and Sabine Bar.

Corpus Christi port plans to return to normal operations on September 4.



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Terminal News
August 30, 2017
Fujairah's commercial stocks of refined oil products fell 8.1% to 20.685 million barrels in the week to Monday (August 21), sinking to a nine-week low.The decline in total stock levels was on the back of large draws in inventories of middle and heavy distillates, which both fell to their lowest level in more than two months, data released on August 23 by the Fujairah Energy Data Committee (FEDCom) showed...

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Fujairah's commercial stocks of refined oil products fell 8.1% to 20.685 million barrels in the week to Monday (August 21), sinking to a nine-week low.

The decline in total stock levels was on the back of large draws in inventories of middle and heavy distillates, which both fell to their lowest level in more than two months, data released on August 23 by the Fujairah Energy Data Committee (FEDCom) showed.

However, stocks of light distillates, predominantly petrol and naphtha, rose by 371,000 barrels, or 5.8%, to 6.787 million barrels, remaining close to the average for the past six weeks of 6.64 million barrels. While the Asian petrol market remained steady, the Middle East petrol market continued to find near-term support from tighter supply both east and west of Suez due to a spate of fires at key refineries.

In particular, the PetroChina refinery at Dalian, China, and the GS Caltex refinery at Yeosu, South Korea, were expected to reduce reduce petrol output for a period following recent incidents, mainly affecting supply in the Asian market.

The fire last Thursday at the Dalian refinery in northeastern China, one of the country's largest, broke out in the plant's 1.4 million mt/year residue fluid catalytic cracker, which produces mainly petrol. The Caltex refinery, South Korea's second largest, shut a heavy oil upgrading unit after a fire broke out in the 66,000 b/d vacuum residue hydrocracker at its complex in Yeosu, resulting in a loss of light and middle distillate production capacity.

That confluence of events could potentially draw more petrol barrels eastwards from the Middle East and India, reversing the previous stock build in light distillates seen at Fujairah over the previous three weeks.

First month/second month time spreads for Arab Gulf petrol 95 swaps were at a firmer backwardation, up to $1.77/b this week -- the strongest seen so far this year.

PERNIS ARBITRAGE PULL PETERS OUT

Stocks of middle distillates at Fujairah totaled 3.187 million barrels on Monday, August 21, a 10-week low, following a sharp 21.1% drop week on week. Local sources cited strong demand from the Persian Gulf region as the main driver for the 852,000 barrels draw. That was most likely to have been related to continued high temperatures throughout the region extending the summer peak demand period for electricity to run air conditioning. That may have caused some Arab states with insufficient gas supplies to turn to diesel and gasoil as short-term fuels for power generation.

Interest to move arbitrage volumes of gasoil and jet fuel to Europe has cooled. The temporary pull created by the recent outage at the Pernis refinery in the Netherlands has now ended. The East-West Gasoil exchange of futures for swaps was pegged Tuesday, August 22 at the lowest level seen so far this month, indicating no arbitrage opportunity to move gasoil west. At the same time, the Asian gasoil market was seen as oversupplied due to weaker seasonal diesel demand in a number of countries.

The first month/second month time spread for Arab Gulf gasoil swaps was pegged at 3 cents/b Tuesday, and could flip into contango if the current oversupply in Asia persists.

SEASONAL CUSP

Fujairah's stocks of heavy distillates and residues, which make up more than half the oil product volumes stored at the UAE Arabian Sea port, fell 1.348 million barrels, or 11.2%, week on week to a 12-week low at 10.711 million barrels. Stock levels remained close to totals seen in recent weeks.

The week's substantial draw was attributed mainly to a number of fuel oil shipments to Pakistan. Local sources said such shipments accounted for up to half the recent volume departing from Fujairah.

Demand for bunker fuel in Fujairah was reported as improving in recent days, after weeks of being seen as lackluster. Fujairah 380 CST delivered bunkers were assessed at a premium of $2.50-$3.00/mt over Singapore this past week, having been at a discount for most of the previous month. The first month/second month time spread for Arab Gulf 180 CST HSFO swaps was pegged at a backwardation of 35 cents/mt.

Sentiment in the Singapore fuel-oil market was tentative amid uncertainty over September arbitrage supply. Supply from the Middle East was seen rising in September as power generation demand eases from its summer peak. Abu Dhabi National Oil Company, in particular, was expected to offer additional straight run fuel oil via tender. ADNOC should be well positioned to make such offers as a January fire at its 800,000 b/d Ruwais refinery, the Middle East's largest, severely damaged a residue fluid catalytic cracking unit, with the result that refinery yields have shifted toward the heavier end until repairs are completed in 2019.

S&P Global Platts estimated about 230,000 mt/month of petrol production capacity was lost at Ruwais due to the fire, which would mean a substantially increased yield of fuel oil if crude processing remained constant. The full effect of the lengthy repairs at Ruwais may be about to become apparent in the region as Middle East fuel oil demand was expected to begin its seasonal downturn in September. That could lead to increased fuel oil stock levels later in the year.



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Terminal News
August 30, 2017
Odfjell’s terminal portfolio eases challenging markets
Odfjell's performance in its terminals portfolio has helped to soften to impact of challenging energy markets.Odfjell Terminals reported an EBITDA of $10.4 million in the second quarter of 2017 compared to $9.4 million in the previous quarter. This result saw some negative effects from the end of the contango for middle distillates, mostly affecting its Rotterdam terminal...

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Odfjell's performance in its terminals portfolio has helped to soften to impact of challenging energy markets.

Odfjell Terminals reported an EBITDA of $10.4 million in the second quarter of 2017 compared to $9.4 million in the previous quarter. This result saw some negative effects from the end of the contango for middle distillates, mostly affecting its Rotterdam terminal.

The company expects this to continue, however, the long-term contracts for most of its distillation services capacity at the terminal will provide a stable source of income.

Odfjell Terminals has finalised the basic engineering and have all the required permits in place for its first independent ethylene export terminal in Houston, US. It is ready to start construction as soon as it has the appropriate commitments from customers, with whom it is in continuous dialogue to finalise agreements.

Additionally, the company initiated the process to potentially sell its shares in the Singapore terminal. It has received high interest from numerous potential buyers.

Odfjell has also completed the sale of its 35% indirect ownership share in the Exir Tank Terminal in Iran.

Kirstian Mørch, CEO of Odfjell, says: 'We are not satisfied reporting a net loss for the quarter, but our operational performance remains strong. The CTG transaction completed our current growth ambitions and ensures that Odfjell can continue to offer competitive and efficient service to our customers.'



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Terminal News
August 30, 2017
Zenith Energy has announced plans to acquire Arc Logistics Partners to create a terminaling business with more than 22 million barrels of storage.Zenith and Warburg Pincus have formed Zenith Energy US, which will acquire Arc. The company will acquire all of Arc's outstanding public common units, all of the common units owned by Lightfoot Capital Partners and certain private interests owned by the sponsors of Arc Logistics...

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Zenith Energy has announced plans to acquire Arc Logistics Partners to create a terminaling business with more than 22 million barrels of storage.

Zenith and Warburg Pincus have formed Zenith Energy US, which will acquire Arc. The company will acquire all of Arc's outstanding public common units, all of the common units owned by Lightfoot Capital Partners and certain private interests owned by the sponsors of Arc Logistics.

The merger agreement and the transactions have been approved by the boards of directors of both Zenith US and Arc Logistics.

Once complete Zenith will have a terminaling business with more than 22 million barrels of crude oil, petroleum products and other liquids storage.

Jeff Armstrong, president and CEO of the Zenith businesses, says: 'We are very excited to build a platform enabling us to enter the US terminaling market, and very pleased to combine with Arc Logistics in this transformative transaction that will significantly increase the Zenith group of companies' footprint, expanding our scope of services to our combined customers worldwide.

'Arc Logistics' diversified portfolio of logistics assets serves critical links between supply and demand locations in the US, and we intend to further develop their existing terminals as well as pursue new developments throughout North America.'



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Terminal News
August 29, 2017
Vopak reports lower storage financials
Financial results for Vopak's operations in the Netherlands were below expectations, however its operations in the Americas are above expectations.In its first half 2017 report, the company says that its EBITDA of €394 million, a reduction of 6%, reflects a positive market sentiment in the Americas and a stable business environment for its terminals in Asia and Europe, Middle East and Africa...

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Financial results for Vopak's operations in the Netherlands were below expectations, however its operations in the Americas are above expectations.

In its first half 2017 report, the company says that its EBITDA of €394 million, a reduction of 6%, reflects a positive market sentiment in the Americas and a stable business environment for its terminals in Asia and Europe, Middle East and Africa. However, the market environment in the Netherlands has weakened compared to 2016.

As such, it has announced new growth projects totalling 387,000 m3, with an expansion at its Pengerang oil terminal in Malaysia of 430,000 m3 as well as its Alemoa terminal in Brazil with an additional 44,900 m3.

It says it is on track with the completion of the current slate of projects under construction, amounting to 3.2 million m3 of capacity, of which most are backed by commercial storage contracts.

Additionally, the company's efficiency programme to reduce its future cost base with at least €25 million by 2019 is well underway.

Looking ahead, Vopak expects that its 2017 EBITDA will be around 5% to 10% lower than the 2016 EBITDA due to lower occupancy rates, additional costs related to investments, missing contributions from its divested terminals in early 2016 and the foreign currency exchange developments in 2017.

Eelco Hoekstra, CEO, says: 'Although our EBITDA is lower compared to last year, I am encouraged with the ongoing transition of our global portfolio. While focusing our business development efforts more on projects related to chemical and industrial terminals, and terminals facilitating the global gas markets, [...] we are still pursuing oil related opportunities in emerging countries.

'Although we cannot influence the supply and demand of commodities in a business environment characterised by increasing competition, geopolitical developments and volatility in the energy and financial markets, we can influence the quality of our capital investments, lowering operating costs and improving our service.

'In order to support the successful realisation of our 2019 ambitions, we have defined several actions throughout the various levels of the organisation, from further streamlining the divisional structure of the company to simplifying processes.'



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Terminal News
August 29, 2017
New fuel storage terminal opens in South Africa
Burgan Cape Terminals, an independent fuel storage, distribution and loading terminal, has opened in the Port of Cape Town.The new facility is now fully operational after receiving its pilot consignment of diesel in the first week of July. It was also tested before it became fully operational...

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Burgan Cape Terminals, an independent fuel storage, distribution and loading terminal, has opened in the Port of Cape Town.

The new facility is now fully operational after receiving its pilot consignment of diesel in the first week of July. It was also tested before it became fully operational.

The facility, located at the port's eastern mole, is the new facility for cleaner fuels and will help with security of fuel supply in the region.

It has a total capacity of 122,000 m3 across 12 tanks and it can store diesel, petrol, FAME and ethanol for blending and jet fuel. It will also offer the option to blend bioethanol and biofame.

The facility is designed to recieve fuel product by sea, store it, and distribute it by truck. It will provide an essential alternative for local fuel supply, and will significantly reduce the chances of fuel shortages previously experienced in the region.

Construction work started in 2015 after the Transnet National Ports Authority awarded Burgan a 24-year lease to develop the facility.

Rob Nijst, CEO of major shareholder VTTI, says: 'The black-empowered, independent storage facility will play a critical role in strengthening the country's security of fuel supply, energy flexibility and will enable South Africa to benefit from the latest and cleanest fuels.'

The terminal's jetty can accommodate vessels of up to 50,000 DWT, and product will be loaded into trucks for onward distribution by a fully automated loading rack. The facility expected to load more than 36,000 trucks in its first year. Burgan Cape Terminal has accelerated transportation of the sector with its inclusion of emerging black-owned, independent fuel suppliers and contributes to energy as one of the key commodities in driving economic growth.



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Terminal News
August 29, 2017
Tropical Storm Harvey batters Gulf Coast
Tropical Storm Harvey continues to batter the Texas Gulf Coast as major oil and gas players, as well as terminal operators, implement emergency plans to mitigate its affects.The former hurricane – downgraded to a tropical storm – has devastated homes and communities as it slowly makes its way up the coast towards Louisiana...

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Tropical Storm Harvey continues to batter the Texas Gulf Coast as major oil and gas players, as well as terminal operators, implement emergency plans to mitigate its affects.

The former hurricane – downgraded to a tropical storm – has devastated homes and communities as it slowly makes its way up the coast towards Louisiana. At least nine people are reported to have been killed and thousands have been rescued from the flooding. So far, nine trillion gallons of water has fallen in the Texas region – with the Houston area being the worst hit area. Areas southeast of downtown Houston reported more than 48 inches of rain, the most every recorded from a tropical storm in the contiguous US.

The storm made landfall on Friday night (August 25) as a category 4 hurricane near Corpus Christi. A further 20 inches of rain is expected to fall by the end of the week.

The storm has had a significant impact on the country's oil and gas industry and analysts have said it could be one of the 10 costliest storms in US history as insurers try to assess the damage.

According to S&P Global Platts, refinery outages and port closures continue to spread as the storm continued to flood the area, lifting petrol prices.

2.33 million b/d of refining capacity is shut, but with refiners also cutting rates that figures is expected to be much higher.

The stream of distillate cargoes from the US Gulf Coast to Northwest Europe and the Mediterranean basin has halted in the last eight days as the storm forced the closure of terminals, ports and refineries.

According to the US Department of Energy, 19% of oil production and 18% of natural gas production in the Gulf of Mexico was shut-in. Six refineries in the Corpus Christi area and five refineries in the Houston/Galveston area are shut in. Four refineries in the Houston/Galveston area, one in the Beaumont/Port Arthur and two in the Lake Charles area are operating at reduced rates.

Houston-area refiners, including ExxonMobil, Valero, Magellan, Buckeye, Shell and Phillips 66 have shut some of their operations due to flooding.

The US Coast Guard set port condition Zulu, where the port is closed and all port operations are suspended, for Louisiana port Lake Charles and Texas ports Beaumont, Nederland, Orange, Port Arthur, Port Neches, Sabine and Sabine Bar.

Corpus Christi area ports and Houston/Galveston area ports remain closed.

The Galveston ship channel will remain closed to all inbound and outbound traffic for the next two days.

Magellan has suspended operations on two long-haul pipelines – BridgeTex and Longhorn, and Kinder Morgan has shut down select systems of its 3000,000 barrels per day crude and condensate pipeline in Texas.

Colonial Pipeline is running at reduced capacity due to limited supply from Houston refiners and the Explorer Pipeline closed midnight Tuesday to allow product to back up at the start of the line and enable faster deliveries at the northern end.

Storage terminals

- Magellan has suspended operations at its crude terminal and condensate splitter in Corpus Christi;

- Buckeye Texas Partners has suspended all marine terminal operations in Corpus Christ, Texas and has shut down its crude, condensate, fuel oil and naphtha storage facilities in the area – totalling 2.3 million barrels of storage;

- Phillips 66 has suspended operations at its Freeport, Texas terminal after Port Freeport was closed;

- Phillips 66 has also shut its crude and products storage terminal at Nederland, Texas;

- NuStar Energy has shut down its crude and refined products terminal in Corpus Christi.

Check www.tankstoragemag.com for the latest news and developments on Tropical Storm Harvey.

Picture credit: NASA



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Terminal News
August 18, 2017
Further expansion announced for Pengerang Independent Terminals complex
Vopak has announced plans to add an additional 430,000 m3 of storage capacity at Pengerang Independent Terminals.The expansion at the deep water independent liquid storage terminal, announced by the company and its joint venture partners, relates to clean petroleum products and will be commissioned progressively from the first quarter of 2019...

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Vopak has announced plans to add an additional 430,000 m3 of storage capacity at Pengerang Independent Terminals.

The expansion at the deep water independent liquid storage terminal, announced by the company and its joint venture partners, relates to clean petroleum products and will be commissioned progressively from the first quarter of 2019.

The expansion, comprising 24 new tanks ranging between 10,000 m3 and 25,000 m3, will bring overall capacity at the facility to 1.7 million m3. Additionally, one extra berth will be taken into operation, bringing the total number of operating berths to six.

The facility provides storage, blending and distribution services for crude oil and clean petroleum products.

It is connected with pipelines to the industrial terminal Pengerang Terminals (Two), which will be serving the new world-scale refinery and petrochemical complex currently under construction – known as the RAPID project.

In a statement, Vopak says the expansion is aligned with its strategy to invest in strategic hub locations.

It adds: 'The growing need for new storage capacity for clean petroleum products is amongst others based on Asia's growing structural need for petrol and jet fuel as well as the growing need for low sulphur diesel/gasoil as a result of the global low sulphur requirement for shipping as set by the International Maritime Organisation.'



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