Canada has a lot going for it when it comes to storage. Not only does it have the second largest proven oil reserves, second only to Saudi Arabia, it is also a bulk oil exporter to the US.
Oil exports from Canada to the US hit 2.35 million barrels a day in December 2009, accounting for 25.1% of US oil imports and 12.7% of US total oil demand, according to the API.
This represents a massive opportunity for storage operators. US-based Magellan Midstream Partners, for example, is already looking to play a role in supplying Houston-area refineries with Canadian crude.
The concept of Canada shipping crude oil to Asian markets has also warmed considerably over the past year. This opens up new growth opportunities for additional tankage at ports and marine terminals, such as Kitimat and Vancouver in British Colombia.
Jet fuel is another market which represents big potential for storage operators. While only 10% of Canadas aviation fuel was imported a decade ago, one third of the countrys jet fuel is now imported. This is mainly because a lack of refining capacity to turn oil into jet fuel within Canada was leading to high prices.
The fuel facility at Pearson International Airport in Toronto, for example, is the largest airport jet fuel storage facility in Canada and over two billion litres of jet fuel flow through the system each year.
The influx of renewable fuels will create yet more demand for storage in Canada. The country was a late starter, compared to its southern neighbour, but there are now nearly 30 ethanol and biodiesel plants across the country.
Renewable fuel often has to be stored separately from traditional fuels due to contamination concerns. And terminal operators dont have to worry about the demand for the fuel subsiding, as on 1st September Canadas 5% ethanol blend mandate will come into force and biodiesel will have its own 2% mandate starting next year.
The economy has also been kind to the storage market in Canada. The widely publicised closure of the Shell refinery in Montreal, resulting from surplus capacity in the refining sector, may well be a good thing for local terminals. Less refining capacity in the area may lead to a rise in imported petrochemicals and refined products, which will need storage space.
After listing all these factors it is no surprise that Canada has been rated in the top five emerging countries for oil storage by GlobalData. When looking for growth and expansion opportunities storage operators cannot afford not to take a closer look at the country and its potential.
Attending Tank Storage Canada expo & conference is one of the best ways of getting an idea of the market trends, challenges and future growth outlook for the aboveground bulk liquid storage sector.
The two day conference and exhibition, which is now in its second year, is organised by market leading global publication Tank Storage magazine. The conference is targeted at terminal operators, traders, oil majors, regulators, industry experts, equipment suppliers, refineries and biofuel producers.
Not only does it cover strategic storage issues, such as the infrastructure investment, permitting, the growth and decline of storage in Canada, trade activities and enhancing value in the storage sector, it also looks at best practices for safety at the terminal such as fire protection technology, integrity management, tank design and construction methods and vapour recovery developments.
The conference will be held on 28-29th September at the Coast Plaza Hotel in Calgary, Alberta Canada. There are already many terminal operators in Alberta including the likes of Husky Energy, Gibson, CCS and Newalta, making this location perfect for this years event.
As an added bonus the event is run alongside Biofuels International Canada expo & conference, in the same location, giving delegates free access to presentations looking at the influx of renewable fuels onto the Canadian market, as well as insights into blending and distribution.
Full information on this event, as well as a complete conference programme can be found at www.tankstorageevents.com/tscanada and www.biofuelsinternationalexpo.com/canada
The conference delegate fee is only CA$990 or CA$500 for just one day.
Register online now at http://www.tankstorageevents.com/tscanada/register_can_conf.shtml
Or contact Margaret Garn for further details: +44 208 687 4126 firstname.lastname@example.org