Oiltanking Copenhagen has held its first online electronic auction for jet fuel and ultra low sulphur diesel storage capacity, using Matrix Global’s new auction platform.
A monthly capacity of 77,150 m3 for 2021 was sold through the auction. The successful auction marks the first time that Oiltanking has used a competitive bidding process to sell a term contract for individual refined products tank capacity. The final price is confidential, but Oiltanking says that it was ‘substantially higher than the minimum price that was required to participate.’
‘By successfully auctioning jet fuel capacity for Oiltanking Copenhagen with her partner Matrix and the Matrix platform for the first time, Oiltanking has achieved another important milestone in its digitalisation and innovation road-map, thereby supporting Oiltanking’s vision of being the preferred partner in energy logistics. We will continue to develop innovative ways, with partners like Matrix, that will allow us to even better serve our valued customers around the world,’ says Sjoerd Boer, vice president commercial Oiltanking EMEA.
Matrix offers both auction technology and consulting programmes to assist the midstream sector with pricing, and is the creator of the first futures and bilateral contracts for oil storage. It has now sold more than 79.5 million m3 of storage capacity through its auction platforms, including 74.4 million m3 at the Louisiana Offshore Oil Port (LOOP) in the US Gulf Coast and 4.3 million m3 at the AMID facility in Cushing, Oklahoma, US.
‘We appreciate the support of Oiltanking, to allow us to expand our programme to offer a term contract for product storage capacity and to do so internationally. Using an electronic auction process to sell storage in real time, allows energy companies to efficiently deal with risk in this rapidly changing environment. At the same time provides storage companies with a more efficient means to sell their storage capacity. The upstream and downstream sectors of the market have been utilising different elements of derivatives, futures, and online platforms for decades. Our success demonstrates the ability of the midstream storage sector to adapt and complete transactions in all markets,’ says Richard Redoglia, CEO of Matrix.