One is being built in Jurong Island, Singapore, and another in the Port of Gothenburg, Sweden fuel storage caverns are picking up interest.
Now Dow Chemical has agreed to sell its commercial hydrocarbon cavern storage facility in Sarnia, Ontario, to Canadian energy enterprise Provident Energy Trust.
The site has an active cavern storage capacity consisting of five million barrels of hydrocarbon storage and 7.1 million barrels currently being used for storage of brine, injected into storage caverns to bring stored liquids to the surface.
Provident will use the 1,000-acre 12.1-million-barrel facility to improve its midstream operations in the area. The facility also has 13 pipeline connections and a small rail offloading facility.
The companys 2010 capital budget includes about C$17 million (10.6 million) destined for facility maintenance and upgrades to expand rail facilities at the site and to build a truck-loading terminal.
The deal is expected to close in early 2010.