Vopak will acquire in total 44% of Elengy Terminal Pakistan from International Finance Corporation and Engro Corporation.
This includes the acquisition of a 29% share announced earlier in July.
Elengy Terminal Pakistan's wholly owned subsidiary, Engro Elengy Terminal owns a LNG facility located in Port Qasim in Pakistan, adjacent to the Engro Vopak chemical terminal on the mainland side of the channel into Port Qasim.
The facility, which has been in operation since 2015, is the first LNG import facility in Pakistan and comprises an LNG jetty including a 7.5km high pressure gas pipeline. It is connected to the grid of Sui Southern Gas Company.
The liquified gas is supplied, under long-term contracts, via LNG carriers from various exporting countries to the FSRU, which is moored to the EETPL jetty and connected to its pipeline. The regasification takes place on the FSRU and the gas is transferred to the mainland where, under high pressure, it enters the grid of the customer.
Closing of the acquisition is expected to take place in the first quarter of 2019. Closing of the first transaction announced in July is still expected for the fourth quarter of 2018.
The Port of Corpus Christ has been given an additional $59 million in funding for its ship channel improvement project by the US Army Corps of Engineers.
This funding from organisation's fiscal year 2019 work plan, brings the total federal appropriations for the project to $95 million. The estimated cost for the project is $360 million, of which the federal government is responsible for $230 million, while the port is responsible for the remaining $130 million.
Sean Strawbridge, CEO for the Port of Corpus Christi, says: 'The inclusion of additional work plan funds is yet another significant milestone toward the US becoming a net exporter of its energy production.
'Widening and deepening the Corpus Christi Ship Channel is a mathematical certainty. Energy markets are taking notice as the majority of incremental US energy production is coming to Corpus Christi and ultimately to the global markets. We expect over two to three million barrels per day of new crude production coming out way, and our energy producing, and marketing customers know we are building out all the necessary infrastructure to handle these new volumes, safely and responsibly.'
Total plans to acquire Grupo Zema's fuel distribution company Zema Petróleo and its retailer arm Zema Diesel as well as its importation company Zema Importacao.
Zema Petróleo manages several oil products and ethanol storage facilities as well as 280 dealer-operated service stations located in Minas Gerais, Goiás and Mato Grosso. It is also carrying a supply activity to third party retail stations in the same regions.
With this acquisition, Total is entering the largest South American market for the retail of fuels and into the worldwide second largest low-carbon biofuels market. It intends to expand its activities in the area with the objective to double the number of branded stations within five years, particularly throughout the southeast and central-west regions in Brazil.
Momar Nguer, president marketing and services and member of the executive committee, says: 'This acquisition is in line with our strategy to expand in large growing markets and in biofuels markets under out climate roadmap.
Odfell Terminals has been converted to a 100% Odfjell SE controlled holding company as part of a company restructure that strengthens the company's role in its terminal division.
This follows Lindsay Goldberg's departure as a joint venture partner for Odfjell Terminals. The restructure strengthens the company's foothold in tank storage with this holding company and by increasing its ownership in Antwerp's Noord Natie Odfjell Terminals.
As part of Lindsay Goldberg's announced exit plans, it has converted its shares in Odfjell Terminals into 49% direct ownership in two separate joint ventures owning the terminals in the US and Asia.
With Antwerp being an important port for chemicals in the EU, Odfjell takes another strategic step.
The ownership share increases from 12.75% to 25% in Noord Natie, and this stake is wholly owned by the holding company. It will be the management company of Odfjell's global terminal assets and will be the operating partner of the joint ventures in the US and Asia.
Frank Erkelens, CEO of Odfjell Terminals, says: 'After our recent divestments we can now fully focus o growing our footprint of terminals as well as on the synergies with Odfjell Tankers. We see great potential for the terminals in our portfolio.'
Puma Energy has reported a decline in year-on-year EBITDA and gross profit as a result of challenging market conditions.
The company recorded its gross profit as $341 million, impacted by lower unit margins across most markets, given the devaluation of foreign currencies against the US dollar and adverse market conditions.
Its EBITDA was $133 million, above the second quarter figures but it was still negatively impacted by lower unit margins, while opex have been contained.
CFO Denis Chazarain says: 'The challenging conditions outlined in our half year results have continued to impact performance in the third quarter, resulting in lower unit margins and a decline in year-on-year EBITDA and gross profit. Management has maintained strict discipline over the period in relation to costs, capital expenditure and working capital, helping to generate the strong cash flows required to meet Puma Energy's net debt to EBITDA and financial obligations.'
He adds: 'We will continue to operate with the same level of discipline for the foreseeable future to address challenges faced in our operating markets, as a result of currency devaluations against a strengthening US dollar and oil price volatility. Despite these headwinds, third quarter sales volumes increased 8% compared to last year.'
HES Botlek Tank Terminal is preparing to expand storage at the facility with an addition 20,000 m3 of capacity.
The six tanks for biofuels are backed by multi-year customer contracts.
Additionally, the facility has completed the second phase of its expansion project, which doubles its liquid bulk capacity to 490,000 m3.
Global Petro Storage and Equinor have signed an agreement to develop South East Asia’s first independent LPG storage terminal in Port Klang, Malaysia.
The facility will be the first independent, refrigerated LPG terminal in Malaysia, and will provide storage services exclusively to Equinor.
Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as selling volumes to markets like Bangladesh, the Philippines, India, Indonesia and Vietnam.
It will have capacity to turn over 1.5 million tonnes of LPG each year and will be able to handle VLGC and pressurised LPG vessels on its jetty.
Construction work will begin in January 2019 and the 135,000 m3 facility is expected to be complete by early 2021.
GPS is the majority shareholder for the project and will develop, own and operate the LPG facility.
Eric Arnold, MD and CEO of GPS, says: ‘The new LPG terminal is a highly strategic, unique asset that will give Equinor a new platform in South East Asia, and enhance its reach into the region, where the LPG market is growing.
‘GPS’s focus is on developing the infrastructure that suppliers of gas and petroleum like Equinor need to access the global marketplace. This is the latest example of how our technical and operational expertise combine with our financial muscle to deliver industry-changing projects.
Molly Morris, vice president for products and liquids in Equinor, adds: ‘Malaysia is an attractive market and we believe that we will be a competitive supplier to the wholesale Malaysian LPG market as well as to other markets in the region.
‘The terminal and storage are also strategically located for blending and selling to other growing markets in the region.’
This agreement represents the first time the companies have entered into a formal partnership.
This follows GPS’s recent announcement on starting construction works on a new terminal in the Port of Hamriyah, in the UAE.
Tristar Group has acquired a 300,000-barrel crude oil terminal located within the Louisiana Offshore Oil Port.
The Canal Crude Oil Terminal has 18 tanks on a 50-acre site with a loading capability of 3,000 to 4,000 barrels per hour.
LOOP, a deep-water port in the Gulf of Mexico off the coast of Louisiana, is the only mainland port capable of offloading a wide range of vessels, including ULCCs and VLCCs.
Eugene Mayne, Tristar Group CEO, says: 'This is a strategic investment that will not only complement Tristar's fuel farm business but also position Tristar for an entry into the lucrative shale oil industry in the US.
'This is the first small step in our endeavour to enter and be a player in the US shale industry and I am confident that we will develop and grow this facility to be a major export terminal for US crude.'
US oil production rose from 5.5 million barrels to 10 million barrels per day between 2010 and 2017. By mid-2018 US crude oil exports reached 3 million barrels a day.
WorleyParsons has entered into a joint venture with BP Oil New Zealand for a 50% shareholding in New Zealand Oil Services.
Under the JV, New Zealand Oil Services has been awarded a terminal services agreement for the operation of BP's seven bulk fuel storage, handling and distribution facilities in New Zealand. WorleyParsons also becomes NZOS's preferred contractor to deliver engineering, project delivery and asset management services.
Andrew Wood, CEO of WorleyParsons, says: 'This contact demonstrates the synergies following our acquisition of AFW UK Oil & Gas in 2017. It builds upon our established relationship with BP and utilises WorleyParsons' MMO expertise and capability.'
Dialog Group is considering further investments in petrochemical plants within the Pengerang Integrated Complex.
The group is exploring opportunities to further develop its investment in the Pengerang Deepwater Terminal its director of corporate services Chew Eng Kar told reporters following the company's AGM.
He said: 'We have enough land, so there are opportunities where we can move on to the petrochemical industry. We are discussing with partners and are exploring these opportunities but have yet to make any firm decisions.'
In its first quarter 2019 financials, the company says that the expansion of phase 1 is currently on going and that phase 2A, the dedicated petroleum and petrochemicals terminal for RAPID remains on track for full completion in early 2019.
Additional, progress has been made for phase 3 with the signing of a MoU with the State Government of Johor Darul Ta'zim and the State Secretary, Johor to invest and develop common tankage facilities and deepwater marine facilities to support and promote the petroleum and petrochemicals storage and handling tank terminal business.
Land reclamation activities for phase 3, which will be developed on 300 acres of land, have started, and Dialog are in discussion with potential customers for this phase.
Green Plains has completed the sale of three ethanol plants to Valero Renewable Fuels Company for $319 million.
The sale includes ethanol plants in Bluffton, Indiana, Lakota, Iowa and Riga in Michigan, which represented 20% of the company's reported ethanol production capacity.
In additional, Green Plains Partners has completed the sale of the storage assets and assignment of the rail transportation assets associated with the three ethanol plants to Green Plains.
The consideration for the transaction consisted of 8.7 million Green plains units and a portion of the general partner interest equating to 0.2 million hypothetical limited partner units to maintain the general partner's 2% interest.
Green Plains Partners will receive as additional consideration approximately $2.6 million in cash related to the present value gain on railcars transferred.
Limetree Bay Refinery and BP's supply and trading arm have reached a definitive agreement for tolling, supply & offtake of the restarted refinery in St. Croix in the US Virgin Islands.
This announcement follows from the press release on November 4 which stated that Limetree Bay had reached an agreement in principle with a major international oil company.
Limetree Bay anticipates completion of the restart by late 2019.
Governor Mapp says: 'This agreement marks a significant milestone for the refinery restart effort.
'With more than $1.5 billion of total capital investment in the project, we can look forward to a period of significant growth in employment and the economy.'
American Midstream will sell its refined products terminalling business to Sunoco for $125 million.
The refined products terminalling business consists of terminals located in Caddo Mills, Texas and North Little Rock, Arkansas with a total of 1.3 million barrels of storage capacity spread across 21 tanks. The facilities have 77,500 barrels per day of total throughput capacity.
The acquisition builds on Sunoco's strategy of adding fee-based refined product terminals into the overall portfolio.
The acquisition is expected to close in the fourth quarter of 2018.
American Midstream says that this divestiture represents continued progress towards its capital allocation strategy designed to reduce leverage and strengthen the partnership. In addition, the divestiture of the terminals simplifies its business profile while creating capital flexibility.
Tallgrass Energy plans to expand capacity on its Pony Express pipeline up to an additional 300,000 barrels per day.
The company has announced a binding open season soliciting shipper commitments for crude oil transportation services from the Guernsey, Wyoming origin point to refinery delivery points along the Pony Express system and to Cushing, Oklahoma.
The open season is expected to conclude on January 18, 2019.
Based on commitments received, the capacity expansion of 300,000 barrels per day beyond expected year-end capacity of approximately 400,000 barrels per day.
The expansion is expected to be staged over the next two years, with full-in service in the third quarter of 2020.
The Louisiana Offshore Oil Port has confirmed its deepwater loading capabilities can meet market demand after successfully loading multiple VLCCs for export during 2018.
In February 2018, LOOP achieved a milestone by loading its first VLCC at the deepwater port, offshore of Port Fourchon, Louisiana. Houston-based Shell Trading Company US was the shipper of record for that historic cargo. This capability by the port has been described as having game changing potential by Marathon Petroleum Company, which is the majority owner of LOOP.
LOOP is the only US port capable of fully loading a VLCC. This now enables inbound vessels to deliver foreign crude oil and then leave LOOP with US crude oil, rather than returning empty.
Since the Crimson/MPLX announcement of the Swordfish pipeline reversal, public information officer Wade Tornyos says that customer requests concerning its deepwater port export capabilities have skyrocketed.
Marathon says in a statement that with domestic production surpassing 10 million barrels per day, the capability 'truly optimises America's energy supply chain'.
Marathon Petroleum logistics and storage executive vice president John Swearingen says: 'LOOP started talking about vessel loading several years in the effort to diversify their overall business offerings. They were able to offer a solution to the marketplace quickly and at a fraction of the cost of other options.
Terry Coleman, LOOP president, says: 'Today, customers are seeking more options to load petroleum produced in the US onto the largest ocean-going ships for delivery to international destinations.
'The service has been embraced by customers and connects our Clovelly Hub in Galliano, Louisiana, with our deep-water port and to the global refining market.'
Oiltanking has announced plans to sell its indirect investment in Exir Chemical Terminal PJSCo in Iran.
The company says this decision has been made as a result of the difficult market situation in Iran and as part of its continuous portfolio optimisation.
The company has sold its indirect investment to the Iranian joint venture partner.
The terminal, located in the Petrochemical Special Economic Zone in the port of Bandar Imam Khomeini in Iran, was commissioned in January 2010 and is connected by pipelines to the jetties of the Petzone at the Persian Gulf.
Policy choices made by governments across the globe will determine the shape of the energy system of the future as the energy sector experiences a series of major transformations.
The International Energy Agency's World Energy Outlook 2018 sets out global energy trends amid a time of significant geopolitical change and influence.
While the geography of energy consumption continues its historic shift to Asia, the document finds mixed signals on the pace and direction of change.
Oil markets are now entering a period of renewed uncertainty and volatility, including a possible supply gap in the early 2020s and demand for natural gas is on the rise.
Oil consumption will grow in the next few decades as a result of rising petrochemicals, trucking and aviation demand. Meeting this growth in the near term means that approvals of conventional oil projects need to double from their current low levels.
According to the WEO without such a pick-up in investment, US shale production would have to add more than 10 million barrels a day from today until 20205, which is the equivalent of adding another Russia to global supply in seven years. This would be an historically unprecedented feat.
In all cases, governments will have a critical influence in the direction of the future energy system. According to the documents new policies scenario, under current and planned policies, energy demand is set to grow by more than 25% to 2040, which will require more than $2 trillion a year of investment in new energy supply.
Dr Fatih Birol, IEA's executive director, says: 'Our analysis shows that over 70% of global energy investments will be government-driven and as such the message is clear – the world's energy destiny lies with government decisions.
'Crafting the right policies and proper incentives will be critical to meeting our common goals of securing energy supplies, reducing carbon emissions, improving air quality in urban centres and expanding basic access to energy in Africa and elsewhere.'
Read the full report in the December/January edition of Tank Storage Magazine.
ADNOC has signed a MoU with the Indian Strategic Petroleum Reserves to examine the possibility of storing ADNOC crude oil at its underground oil storage facility in Karnataka, India.
The MoU stipulates that ADNOC could store crude in two compartments at Pardur, which has a total storage capacity of 17 million barrels.
The memorandum follows the arrival of the final shipment of the initial delivery of ADNOC crude to be stored in another ISPRL underground facility at Mangalore, which will store 5.86 million barrels of ADNOC crude oil.
ADNOC is the only foreign oil and gas company so far to invest by way of crude oil in Indian's strategic petroleum reserves programme.
H.E. Dr Al Jaber, ADNOC Group CEO, says: 'India is an important oil market and this agreement underscores the strategic energy partnership between the UAE and India that leverages the UAE and ADNOC's expertise and oil resources.
'It is our firm hope that we will be able to convert this framework agreement into a new mutually beneficial partnership that will create opportunities for ADNOC to increase deliveries of high-quality crude oil to India's expanding energy market and helping India meet its growing energy demand and safeguard its energy security.'
H.E. Dharmendra Pradhan, minister of petroleum and natural gas skill development and entrepreneurship, Government of India, adds: 'This MoU will allow ISPRL to explore, with ADNOC, opportunities related to the possible storage of ADNOC crude at Padur, which would help to significantly strengthen the country's strategic petroleum reserves. This agreement reflects the strong bonds of cooperation between India and the UAE and provide a foundation for strengthening and expanding our strategic energy relationship.'
India is over 82% dependent on imports to meet its crude oil needs, around 8% of which is supplied by the UAE.
USD Partners has announced it is moving forward with the Hardisty South expansion, which adds one unit train per day of takeaway capacity at the facility.
The existing Hardisty terminal, which is owned by USD Group, has designed capacity for two unit trains per day, around 150,000 barrels per day of capacity.
Hardisty South will add 75,000 barrels per day of takeaway capacity to the terminal by modifying the existing loading rack and building additional infrastructure and trackage.
The project is expected to be in-service by January 2019. To date, 67% of Hardisty South's capacity has been commercialised through take-or-pay agreements with minimum volume commitments.
Additionally, USD Partners has entered into a four-year extension with an oil infrastructure focused company at its Hardisty terminal.
The Canadian-based company has significantly increased its position by more than doubling its contracted capacity at the terminal.
The contract extension contains consistent take-or-pay terms with average minimum monthly payments and rates that exceed those of the original terminalling services agreement.
To date, the company has renewed and extended 65% of the capacity at the terminal through mid-2022, with 42% extended through to mid-2023.
Saras has announced plans to build a marine bunkering terminal and will market a new, cleaner marine fuel ahead of the IMO 2020 regulation.
The new terminal will be built at the Italian refiners Sardinia plant. Speaking to Reuters CEO Dario Scaffardi says that by producing the new fuel, the company has a competitive advantage over others as the low sulphur specs are difficult to achieve for technical reasons.
He says: 'With a small investment, we will have bunkering infrastructure and a lightering vessel and start selling local fuels to expand the market.'
The plant will initially produce 500,000 to 600,000 tonnes of ultra-low sulphur fuel oil per year.
Inter Pipeline increased its funds from operations by $30.8 million in its third quarter 2018 financials, compared to the same period the previous year.
The company reports funds from operations of $299.7 million and says this is primarily driven by record performance in the NGL processing business, which continued to provide exceptional results from higher production volumes and increased frac-spread pricing.
Its bulk liquid business generated funds from operations of $14.8 million in the quarter, compared to $25.2 million in the third quarter 2017. Storage demand for certain petroleum products in Europe continued to be impacted by a backwardated commodity pricing environment.
As a result, average utilisation rates during the quarter dropped from 95% in 2017 to 74%, which was largely reflective of unfavourable market conditions in Denmark, where storage utilisation rates averaged 50% during the quarter, compared to 96% in the same period in 2017. Utilisation remained at 90% or better in Sweden, the UK and Germany.
Christina Bayle, Inter Pipeline's president and CEO, says: 'Inter Pipeline's record results this quarter is proof of the company's resilience despite the volatility in Western Canada's commodity price.
'Our oil sands and conventional pipeline assets provide stability in challenging times, while our NGL processing franchise positions us for significant cash flow growth from elevated North American gas liquids pricing.'
Caliche Development Partners has put its first NGL subsurface hydrocarbon storage project in Beaumont, Texas into service.
This follows a detailed commissioning effort, providing safe and on-specification handling and storage of ethylene from Caliche's initial pipeline connection. Caliche is a Houston-based company focused on the development, construction and operation of subsurface hydrocarbon storage assets and related pipelines in North America.
The cavern allows for storage of up to 600 million pounds of ethylene and connects to a 12.8 mile-header system crossing five operating ethylene pipelines, two more of which will be connected to the facility before the end of 2018.
Additionally, drilling has been completed on a five-million-barrel cavern for ethane storage.
Caliche expects to provide up to 120,000 barrels per day of ethane deliverability, as well as a 12-mile ethane header mirroring the path of Caliche's ethylene system.
By the end of 2019, the ethane header will cross five ethane pipelines connecting more than 50% of Gulf Coast ethane consumption with the Mont Belvieu NGL complex.
The company has also begun drilling for a planned three-million-barrel cavern for other NGL storage with up to another 120,000 barrels per day of deliverability.
Once fully developed, Caliche Coastal will provide up to 32 million barrels of salt cavern storage facilities.
Dave Marchese, CEO of Caliche Development Partners, says: 'Caliche has received tremendous support from the market and Beaumont community over the past year-and-a-half, and it is rewarding to pass such a significant milestone.
'Customers are asking for ethane and other NGL storage, and we have the people, location and assets to serve these markets and customers.'
Odfjell has reported stable financial results for the third quarter of 2019, with an EBITDA of $32 million.
The company's terminals segment reported an EBITDA of $4 million compared to $9 million in the second quarter. It reported losses of $16 million related to the sale of the Rotterdam terminal that included currency translation and tax losses in addition to transaction costs.
The segment's financial was impacted by the fuel oil spill in the Rotterdam harbour, interrupting storage and distillation business due to the closure of the port. The sale of the terminal also led to fewer days of income contribution for the terminal.
The result was also impacted by higher G&A related to the restructuring of the Odfjell Terminals organisation.
The company's US terminals showed a stable EBITDA of $4.4 million compared to the previous quarter thanks to strong market demand and high activity in the country.
Odfjell CEO Kristian Mørch says: 'Adjusting for the Rotterdam terminal, our terminal division delivered stable results. We have positioned ourselves well for the future, both within tankers and terminals, with one of the most energy efficient fleets in the world.'
Anadarko Petroleum is selling all of its remaining midstream assets, including pipeline and oil systems in the Delaware and DJ Basins for $4.015 billion to Western Gas Partners.
At the same time, Western Gas Partners has entered into a merger agreement with Western Gas Equity Partners, which will result in a simplied midstream structure.
Anadarko is selling all of its interest in DBM Oil Services and APC Water Holdings to Western Gas. Western Gas is also acquiring a 50% stake in the Bone Spring Gas Plant and a 50% stake in MiVida Gas Plant in the Delaware Basin.
In the DJ Basin Western Gas will acquire Anadarko's 100% interest stake in both the DJ Basin Oil System and the Wattenberg Plant.
Additional assets being acquired include equity stakes in the Saddlehorn Pipeline, the Panola Pipeline and the Wamsutter Pipeline.
Anadarko will maintain operating control of the largest midstream master limited partnerships with 55.5% pro-forma ownership of the combined entity.
Al Walker, Anadarko chairman, president and CEO, says: 'The size of this asset sale, along with the clear benefits of the simplification transaction, highlights the tremendous value of Anadarko's midstream business.
'This will enhance the read-through value of Anadarko's midstream ownership through increased liquidity and a less complex structure.'