Latest storage news

Canada has become the most recent country to request its oil refineries slow down production as a glut of fuel threatens to max out storage capacity.

It is thought Western Canada is just days away from running out of oil tank storage for its over-supply, according to international analysis firm Rystad Energy.

The firm estimates the country will need to drop its production by around 11%, or 440,000bpd, in order to stop it from reaching over-supply.

Of Canada’s 40 million barrels of storage, about 30 million is currently full. To avoid a fuel glut, crude-by-rail exports will need to be reduced by at least 75% Rystad says. 

Thomas Liles, senior analyst at Rystad Energy, says: “Compounding the situation is the near-certainty of a steep reduction in crude-by-rail exports this year, as well as deferral of spring maintenance at several key oil sands mining projects.”

The reduction in oil production is a situation analysts are witnessing around the world as both India and the USA begin to slow down production volumes in response to oil prices falling to nearly $25 a barrel. There are estimates these prices are set to decline further.

Rystad also anticipates global capital expenditure for oil exploration and production could fall by US$100 billion this year, as the Coronavirus pandemic negatively impacts the market. 

The company estimates that with the way the markets are trending, global oil investments alone look like they will fall to about US$380 billion this year – the lowest prices seen in 14 years.

Olga Savenkova, upstream analyst from Rystad, says: “As companies are now losing solid oil market ground for a second time in recent years, it will be far more challenging to act quickly and reach the same high level of investment revision without taking a heavy toll on exploration and production’s performance.”

Oil major Shell says it is pulling out of the proposed Lake Charles LNG project in Louisiana, due to ‘current market conditions’.

The project was a 50/50 joint venture with US-based Energy Transfer to convert an existing LNG import terminal into an export facility with 16.45mtpa of LNG storage.

Shell first entered into the development agreement back in 2016, with the aim of increasing US natural gas exports to global customers.

Shell says it will now continue to work on the bidding process with Energy Transfer to help secure engineering, procurement and construction contracts, before exiting the project in a strategic handover phase.

Maarten Wetselaar, director of Integrated Gas and New Energies at Shell, says: “This decision is consistent with the initiatives we announced last week to preserve cash and reinforce the resilience of our business. Whilst we continue to believe in the long-term viability and advantages of the project, the time is not right for Shell to invest.”

Last Monday Shell announced that in order to deal with the economic impact of the Coronavirus outbreak it was slashing its capital spending by US$20 billion and operating expenses by $3-4 billion over the coming 12 months.

Commenting on the cutbacks, Ben van Beurden, CEO of Shell, said: “As well as protecting our staff and customers in this difficult time, we are also taking immediate steps to ensure the financial strength and resilience of our business.”

Ports within the Italian North Tyrrhenian network are working together to manage the glut of oil arriving into the region which can’t be delivered until the country’s Coronavirus lockdown is over.

Petrochemical shipments arriving from Asia are causing congestion and the cost of port storage is rising as the region reaches an over-supply.

The Port of La Spezia, Tarros Group and Contship Italia said they will work together to find increased storage options for the influx.

Meanwhile, India is facing similar problems due to the falling demand for oil. Indian Oil Corp (IOC), the country's biggest oil refiner, says it has cut its processing by up to 40% to avoid reaching storage tank capacity within the country.

Southern Indian company Mangalore Refineries and Petrochemicals Ltd said it had already reduced its refining capacity by a third, down from its regular output of 300,000bpd. It said it was ready to activate a complete shutdown if the demand for supply continues to fall.

Analysts are estimating the world’s fuel demand could fall by as much as 20% in the second quarter of this year as the globe grapples with the Coronavirus pandemic.

However, other ports around the world are reporting trade imports are continuing as normal. Port of Antwerp released a statement on Friday saying there had not been a significant drop in shipping volumes.

Although this has, in turn, led to a shortage in tank storage at the port as – like elsewhere around the world – there has been a reduction in the consumption of oil.

Pipeline operators in the US have been requesting oil producers slow down their outputs as a glut of oil begins to overwhelm tank storage capacity around the country.

According to Bloomberg, Plains All American Pipeline LP last week sent a letter to producers asking them to reduce their production, while Colonial Pipeline Co, another large US-based pipeline operator, has also cautioned customers.

Colonial Pipeline has warned if petroleum becomes stuck in its system, excess would be sold off to the highest bidder in order to free up storage within tank facilities.

Plains All American Pipeline says it’s also worried customers may choose to store crude oil in its pipeline network until demand begins to improve once again. The company is requesting its customers show proof they have an end-point to ship their production to, to ensure the oil doesn’t remain stagnant.

The Coronavirus outbreak around the world has caused a slump in oil demand as fewer cars hit the roads and fewer planes take to the skies. Late last week, oil prices in North America reached the lowest levels seen in decades.

Although some producers have begun to slow down drilling, it’s estimated that it could take a month or more before this has a knock-on impact on total oil production.

Already a major US storage hub, located in Cushing, Oklahoma, has reached more than 50% capacity and there are concerns more facilities could soon follow.

In the hunt for new oil storage as the global fuel glut grows, South Africa’s Port of Saldanha Bay is being targeted as a potential new crude oil storage hub.

According to S&P Global Platts, oil has already begun to be shipped to Saldanha Bay for storage as the race to find storage for the over-supply of oil begins.

Saldanha Bay is a deepwater port and located 60 nautical miles northwest of Cape Town. In the past it has been predominately used to export iron ore mined from sites within the Northern Cape.

However, over recent years it has constructed facilities for the oil and gas industry, of which oil majors are now tapping into in their hunt for excess storage facilities.

The facility has a capacity of nearly 60 million barrels of storage, and its strategic location between both Europe and Asia means it could turn into a popular port for crude storage in this uncertain economic climate.

At present, the majority of crude oil has been arriving at Saldanha Bay from West Africa, a region that is already facing issues with storage for excess crude.

In countries such Nigeria there are currently unsold barrels of oil sitting idle as the Coronavirus outbreak disrupts the market.

The current production of oil cannot be sustained in the second quarter of this year, due to the lack of global storage, London-based analysis firm IHS Markit has warned.

The company analysed the world’s supply and demand for oil and said there will be a glut of 1.8 billion barrels in the first half of this year, which exceeds the current crude oil storage capacity of 1.6 billion.

IHS Markit said the storage capacity varies greatly across different countries, with Nigeria in the direst situation for how long it would have until its domestic crude oil production filled the country’s available storage. The firm estimated the country’s daily production of 1.9 million barrels per day would fill its available local storage in just 1.5–2 days if its production of oil isn’t sold on.

China is in the most favourable position for storage, with a more than 52-day window until its storage would reach capacity, while the US and Europe would both fill its storage facilities in around 30 days.

Storage availability will lead to determining where in the world production will be reduced or even shutdown altogether. However, for some production facilities, there are added risks to shutting down production for purely economic reasons, such as the potential to cause reservoir damage, said IHS Markit.

Aaron Brady, Vice President of IHS Markit, says: “Those with better access to storage options may fare better than others. Creative storage solutions are likely to emerge, but they are unlikely to make up for the sheer pace and scale of the supply surplus.”

Oil majors around the world are slashing their budgets to survive the impacts of the Coronavirus outbreak.

Oil prices have fallen over recent weeks to just US$25 a barrel, causing producers to re-evaluate their spending for 2020.

In North America alone, oil and gas companies have slashed their capital spending budgets by around 30% on average, according to data analysed by Reuters.

Oil company Eni says it will cut its investments and halt plans to re-purchase US$433.84 million of shares, while ExxonMobil also announced it would make ‘significant’ cuts to the US$30 - $33 billion budget it had set aside for this year.

Shell has already dropped its capital expenditure by US$5 billion and has suspended its share buyback plans.

Total says its main budget cuts will be in its exploration sector, where it plans to save about US$800 million in operating cost savings, an increase on the US$300 million it had previously proposed cutting.

The reduction in budgets come after oil storage tanks around the world begin to reach capacity, regardless of a significant price hike in leasing costs.

According to Reuters, Europe’s Amsterdam-Rotterdam-Antwerp refining and storage hub saw the cost of storing diesel and jet kerosene rise by between 50% and 100% over recent weeks.

While oil producers have cut down on production, a glut of oil has flooded the market because of the downturn in demand relating to the Coronavirus.

With the cancellation of the majority of flights around the world, planes aren’t needing to be refuelled which has also led to a rise in the need for jet fuel storage.

Although it is estimated there is between 0.9-1.8 billion barrels of spare tank storage capacity globally, this only amounts to between three to six months of extra storage if supply is to exceed demand by more than 10% over this period.

As coronavirus lockdowns continue, energy prices in Europe have slumped amid predictions of a long-term fall in demand.

Reuters reports the outbreak of COVID-19 has set off a sharp slump in demand for energy across Europe in the short term, with many energy-hungry manufacturing sectors slowing production rates.

These combined falls have seen gas producers and operators, like Norway’s Equinor, cancel or delay maintenance at its gas plants and processing facilities.

Spot LNG price rises in Asia for three straight weeks are offering some hope of outside markets picking up the slack, but for Europe the local market outlook is down.

Despite the drop in energy prices and global demand for energy, Saudi Arabia said earlier this month it is preparing to increasing its oil production.

The country’s government ordered state oil business Aramco to up its oil production while ADNOC, Abu Dhabi’s oil and gas company, says it will also increase its oil production to four million barrels a day, a rise of around 25%.

Meanwhile, Norwegian consultancy Rystad Energy is predicting that over the next two months, demand for European energy could fall more than 4% with growth throttled to as low as 0.36%.

With demand slumping, other analysts are forecasting a fall in prices of between 5-10% even after the Coronavirus lockdowns are lifted.

Odfjell Terminals US (OTUS) has closed a new five-year, $250 million revolving credit facility to refinance existing debt and also to fund investments in its existing infrastructure and new growth projects. The new financing also includes potential additional funding of larger scale growth opportunities. 

Odfjell CFO, Terje Iversen says: ‘This is an important milestone for our terminal portfolio in the US, as it positions the company to expand its terminal footprint in Houston, one of the strongest growth areas and key hubs for petrochemicals in the world. The financing ensures that OTUS can embark on accretive growth opportunities and remain self-funded. We are also pleased to conclude attractive bank financing, from existing and new lenders, at a time of financial turmoil and consider this a testament to the strong outlook for the US terminals’.

OTUS is jointly owned by Odfjell SE (51%) and Northleaf Capital Partners (49%). Odfjell SE is headquartered in Bergen, Norway, and operates a fleet of 75+ vessels, making it the world’s second-largest provider of chemical transportation. 



Northleaf Capital Partners is headquartered in Toronto, Canada, and manages $13 billion of capital commitments deployed across 200+ active private equity, private credit and infrastructure investments in 14 countries.

Sharjah National Oil Corporation (SNOC) has signed a US$40 million deal with Petrofac Facilities Management International Ltd to build the Moveyeid Gas Storage Surface Facility Project in the United Arab Emirates.

The project will include LNG storage, a compressor facility, and high-pressure pipelines leading from four Moveyeid Field gas wells to the site.

SNOC says there is a large demand for gas in the region and a new storage facility will assist in meeting this demand. The company also has plans to drill for additional gas wells, a process it says will begin in 2023.

The company said at present the COVID-19 virus should not impact its projects in the region, and all developments were pressing ahead as scheduled.

The project first came about after SNOC planned to import LNG into the region, but then the company realised there was untapped domestic reserves in the region which it could extract.

In January, oil and gas major Eni said it had also tapped into gas prospects in the Mahani exploration region, under a joint contract with SNOC. The discovery amounted to a gas field with the capacity to produce 50 million cubic feet a day.

SNOC is in charge of the construction, production, operation and maintenance of Sharjah's energy assets. Along with its Mahani gasfield, SNOC owns and operates three two hydrocarbon liquid storage and export terminals, as well as numerous pipelines and onshore gas fields and processing facilities.

Energy manufacturing and logistics company Phillips 66 says it will slash more than US$3 billion from its budget and suspend a number of projects in response to low oil prices.

The company announced it is reducing this year’s consolidated capital spending by $700 million, removing $500 million from its operating and administration costs while also suspending its stock repurchase programme.

Phillips 66 says it will be stopping work on its Red Oak Pipeline and Sweeny Frac 4 projects, as well as its Partners’ Liberty Pipeline.

The Sweeny Refinery, located southwest of Houston, will suspend its development of a new natural gas liquids processing facility. The Red Oak Pipeline, which consists of a construction project to transport oil from storage terminals in Cushing, Oklahoma and the Permian Basin of West Texas to numerous locations along the Gulf Coast, will also be put on hold.

Aside from scaling down its operations, the company says it is remaining optimistic about the future.

Greg Garland, chairman and CEO of Phillips 66, says: ‘We are taking action to maintain our financial strength to ensure security of our dividend, execute capital growth projects that are near completion, and maintain our strong investment grade credit rating.’

Phillips 66 is not alone in making the cuts, with other energy majors including Chevron, Shell and Total announcing they are slashing their budgets in order to deal with a rapid drop in oil prices.

A major Caribbean oil refinery has activated its COVID-19 emergency response plan after a worker tested positive for the virus, casting doubt onto its summer restart.

Management of Limetree Bay Refinery on St. Croix in the US Virgin Islands put the worker into a quarantine area along with other people who were found to have been contact with them.

Brian Lever, president and CEO of Limetree Bay, says: ‘The health and safety of our staff, as well as the community, remains a top priority for Limetree and we will continue to take the necessary steps to slow the spread of COVID19 within our facility and our community.’

The facility features 167 storage tanks, with a capacity of around 34 million barrels, along with 11 docks with deep water access.

The worker who contracted COVID-19 was employed as part of a 3,000-strong team hired to refurbish and restart St Croix’s former Hovensa refinery with a US$2 billion overhaul.

The Limetree Bay facility was expected to start commercial processing operations in June or July after overcoming delays caused by corrosion.

Shuttered in 2012, the plant was picked up by Arclight Capital Partners and Freepoint Commodities, whose investment aims to restore a production level of 210,000 barrels of oil per day.

The US Department of Homeland Security (DHS) has moved to designate the nation’s petrochemicals industry as ‘essential critical infrastructure’ as part of efforts to fight the rising disruption caused by COVID-19. 

As the novel coronavirus continues to infect people throughout the US and the rest of the world, federal and state governments in the US are shutting down certain areas and work sectors to combat its spread.

But some work sectors have been identified as having a responsibility to maintain business as usual. 

President Donald Trump issued Coronavirus Guidance for the US, stating: ‘If you work in a critical infrastructure industry, as defined by the Department of Homeland Security… you have a special responsibility to maintain your normal work schedule.’

This now includes the petrochemicals industry, which creates and supplies crucial elements for scores of sectors across the US economy, and has been severely disrupted by the coronavirus outbreak.

DHS said the essential services list included:

-       The safe transportation of chemicals, including those supporting tank cleaning facilities

-       The operation and maintenance of facilities (particularly those with high risk chemicals and/or sites that cannot be shut down) whose work cannot be done remotely, including plant contract workers who provide inspections.

The DHS statement comes after the American Chemistry Council (ACC) said it was ‘vital’ for the chemicals industry to continue its work during the COVID-19 outbreak.

The trade group said: ‘As state and local governments make their decisions regarding Covid-19, we fully expect them to rely on this DHS guidance and not place any undue restrictions that would impede chemical production, including the ability of employees to travel to work and the transportation of material to and from chemical facilities.’

Abu Dhabi Ports has signed a strategic agreement with Saudi Arabia based Arabian Chemical Terminals (ACT) that will see the development of the emirate’s first greenfield commercial bulk liquid storage terminal at its flagship, deep-water Khalifa Port.

Further diversifying Abu Dhabi Ports’ portfolio with enhanced capabilities in the handling of liquid bulk products and gases, the project will benefit existing customers and attract new customers in the region seeking liquid bulk storage.

Serving as the first terminal to be developed by ACT in the UAE, the facility’s strategic location and advanced facilities, which will deliver world-class logistics and industrial services, is expected to appeal to ACT’s current clientele that includes some of the world’s largest oil and gas firms. Both new and existing customers will be able to take advantage of Khalifa Port’s strategic location combined with its improved maritime, logistics, and industrial capabilities

The agreement for the bulk liquid terminal, which will be developed on a 50,000 square metre land plot adjacent to a 16 metre deep-water quay access, with option for an additional 150,000 square metres of land was signed by Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports and Rakan Alireza, Managing Director of Arabian Chemical Terminals Ltd and Deputy Managing Director of Reza Investment Company Ltd.

To maintain business continuity while ensuring adequate prevention measures against the spread of Covid 19 were in place, the signing of the agreement was conducted remotely through Abu Dhabi Ports’ digital capabilities.

As per the agreement, the project is set to be completed in two phases with the first stage slated for commissioning in the second half of 2022 entailing the deployment of 44 storage tanks sized 1250 and 3000 tonnes each. The terminal’s second phase will commence following expansion of the surrounding area and will consist of a number of larger industrial storage tanks and spheres.

Upon completion, the facility will be able to handle liquid bulk products that include vegetable oils and oleochemicals, bitumen, liquid gases, petrochemical downstream products, hydrocarbons and fuels, as well as non-liquid gases, speciality and niche chemicals. Broadening the range of capabilities and value offering for Abu Dhabi Ports’ clients, particularly those in the oil and gas and manufacturing segments, the new bulk liquid storage terminal at Khalifa Port will provide customers with the opportunity to reduce their costs of outsourcing their liquid and gas expenditures.

Both new and existing customers will be able to take advantage of Khalifa Port’s strategic location combined with its improved maritime, logistics, and industrial capabilities.

Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports, says: ‘Providing technology-rich, end-to-end logistics solutions for customers of all sizes and industries is at the core of Abu Dhabi Ports’ diversification strategy.

‘The commitment to a 50-year lease by our Saudi Arabia based partner ACT serves not only as an example of strengthening of economic ties between Saudi Arabia and the UAE, but also highlights the cooperative spirit shared by the two nations to drive future trade growth. Working closely with ACT, we are pleased to now offer a comprehensive suite of integrated logistics solutions that are powered by the most advanced technologies available in the market.

Rakan Alireza, Managing Director of Arabian Chemical Terminals and Deputy Managing Director of Reza Investment Company says: ‘We’re excited to be spearheading the development of our first commercial tank farm in the UAE, here in Abu Dhabi, as we previously pioneered in KSA.  

’Located between Abu Dhabi, Ruwais, and Dubai industries, the new liquid terminal will not only prosper as a result of its strategic location, but will be further bolstered by Khalifa Port’s multi-modal connectivity with access to the sea and UAE’s extensive road and future GCC railway network.

‘In addition to supporting our overseas expansion strategy, the project will also provide the foundation for other potential terminal activities within the emirate of Abu Dhabi.’

Beyond the development of the bulk liquid terminal, ACT is exploring different opportunities to expand its service offering at Khalifa Port and its surrounding environment. This expansion includes the facilitation of fuel bunker services for port customers, drumming and ISO filling services, the development of an independent laboratory, realisation of MARPOL slops reception facilities, ADR qualified trucking and distribution services, as well as offering stevedoring services that will support other liquid product custody transfers.

ACT is also considering new avenues to support KIZAD and its clients, such as providing them with feedstock offerings or assistance in selling their yields, in addition to cooperating with the industrial zone to develop warehouses for both dry and liquid dangerous goods.

The team at StocExpo want to thank the bulk liquid storage industry after the show went ahead on 10-12 March.  Read the full statement…

‘We would like to offer our heartfelt thanks to the industry for supporting StocExpo 2020 in very difficult circumstances.  

‘In the immediate run up to the show, the coronavirus was still in the containment phase in the Netherlands and most other European countries, and during this time, the government authorities continued to tell venues and organisers to run events.  

‘We anticipated that the situation would likely disrupt the show but since many exhibitors had freight in transit, flights and hotels booked, we had to go with government advice at that time. Also, we were still receiving live registrations from terminals and oil majors, despite various travel bans being in place, so we remained vigilant whilst open for business. 

‘It’s times like these that we are reminded what a resilient industry the bulk liquid storage sector is.  We are extremely grateful to all our exhibiting companies, visitors and conference delegates who attended despite the situation, and we are pleased to hear that many good conversations took place.

‘We’re now working to connect all registered attendees further with our long list of leading exhibitors either through online platforms or other media. We will be announcing a supplementary event to connect the industry later in the year.

‘Over the next few months, we will continue to work to support the industry however we can and help ensure we all weather the storm. And of course, we look forward to working with all stakeholders to deliver a successful StocExpo 2021!”

‘Yours faithfully,

The StocExpo team’

Energy consulting firm Rystad Energy estimates the largest global surplus in oil supply history will hit the market next month, generating a glut of about 10 million bpd a day.

The firm analysed storage infrastructure around the world with its data showing around 76% of the world’s oil storage facilities are currently at full capacity.

The analysis comes after the world’s largest oil trader, Vitol, said it estimates global oil demand to slump by more than 10% due to COVID-19 related lockdowns spreading worldwide.

Rystad estimates oil supply will soon surpass demand by six million bpd this year, leading to an accumulated implied storage build of two billion barrels in 2020.

Paola Rodriguez-Masiu, senior oil markets analyst at Rystad Energy, says: ‘The current average filling rates indicated by our balances are unsustainable. At the current storage filling rate, prices are destined to follow the same fate as they did in 1998, when Brent fell to an all-time low of less than $10 per barrel.’

The company believes there is about 7.2 billion barrels of oil and related products in storage at present, including 1.3 billion to 1.4 billion barrels on board oil tankers.

Saudi Arabia and other producers have already met capacity for storage on board Very Large Crude Carriers (VLCC) for March and April 2020.

Calgary-based Pembina Pipeline Corporation has received US Federal Energy Regulatory Commission approval for its Jordan Cove LNG terminal and Pacific Connector Gas Pipeline.

Jordan Cove, located in Oregon, will be the first natural gas export facility to be built on the US west coast.

The project will include two 160,000m³, full-containment LNG storage tanks and a 370km pipeline which will span four counties and lead to an LNG export terminal in Coos Bay, Oregon.

It is expected the $10 billion project will come online in 2025, producing around 7.5 million tonnes of LNG per annum.

The natural gas will be sourced at the Malin Center Natural Gas Hub, which currently serves California and other western markets.

Pembina purchased Jordan Cove at the end of 2017 and over the years has obtained many of the local, state and federal regulatory approvals needed for finalising the project. The company has also liaised with private property owners to put in place voluntary easement agreements making up 77 per cent of the project’s proposed route, granting the company permission to build the pipeline within this location.

Harry Andersen, senior vice president and chief legal officer of Pembina, says: ‘The approval emphasises yet again that Jordan Cove is environmentally responsible and is a project that should be permitted given a prudent regulatory and legal process was undertaken.’

With the recent outbreak of COVID-19 affecting our global community, our thoughts are with all those affected and impacted by the virus.

On behalf of the Tank Storage Magazine team we want to update you on our operational plan during this time and the steps we have implemented to ensure business continuity for our advertisers and readers around the world.

With key industry events being postponed, such as NISTM Orlando, ChemUK, Tanks & Terminals in Dubai and the Cryogenic Storage Tanks Conference in Germany, we want to reassure our advertisers that we're doing everything we can to boost their exposure to the market in the coming months.

The next three editions of Tank Storage Magazine will be sent out free, digitally, to our database of 13,000 recipients. To view our latest edition - February/March - please click here.

The updated distribution for the next three editions is as follows:

April/May

• Posted to all registered attendees to StocExpo 2020

• Posted to all 2019 StocExpo attendees

• Posted to all 2019 NISTM & ILTA attendees

• Posted to 3,500 terminal professionals worldwide

• Distribution at NISTM, Orlando in July

June/July

• Posted to 3,500 terminal professionals worldwide

• Exclusive delegate bag & doordrop distribution at ILTA

• Distribution at NISTM, Orlando

• Distribution at PGLC, Spain

• Distribution at UKIFDA Expo, Liverpool, UK

August/September

• Posted to 3,500 terminal professionals worldwide

• Distribution at ChemUK, Manchester, UK

• Distributed at Tank Storage Association, Coventry, UK

• Distributed at Gastech Singapore

• Distributed at EPCA, Budapest, Hungary

• Distributed at the 8th Bulk Liquid Storage Summit, Spain

With many industry events postponed, Tank Storage Magazine provides a valuable communication tool to the industry. If you are interested in featuring in any of the upcoming editions, please get in touch.

If you have any further questions, please don't hesitate to ask.

Best wishes,

Margaret Dunn,

Publisher

Pavilion Energy and Singapore LNG have signed a five-year agreement for LNG storage and reload services at the SLNG Terminal on Jurong Island.

This agreement is the first to be signed for a term longer than two years, following a competitive bid process. As part of the agreement, Pavilion Energy will have access to tank capacity of 180,000 m3 on a segregated basis at the SLNG Terminal over the next five years. Such capacity will support a higher volume of LNG trading activities, including LNG breakbulk and vessel cool-down services.

The contract's longer tenure allows Pavilion Energy greater flexibility in managing its LNG portfolio, market fluctuations and demand dynamics.

Frédéric Barnaud, Group CEO of Pavilion Energy, says: 'Pavilion Energy is pleased to renew the partnership with SLNG. Tank capacity in Singapore presents greater opportunities for LNG optimisation and trading in the Asia-Pacific Basin. It complements well our LNG/gas trading activities in the Atlantic Basin. Pavilion Energy has held true to our commitment to facilitate wide access to the SLNG Terminal, contributing to the vibrancy of Singapore's LNG market.'

Global LNG trade continues to grow, with import volumes reaching 313 million tonnes in 2018 and spot trades making up a quarter of those volumes.

CEO of SLNG Tan Soo Koong adds: 'SLNG has taken bold steps to develop infrastructure and create new service offerings to meet the needs of the industry, and we will continue to do so. We are primed to play our part in helping Singapore achieve its ambition of becoming an LNG hub, through catalysing LNG-related businesses such as LNG trading, small-scale LNG distribution, LNG bunkering, and more.'

US Development Group and Gibson Energy will start construction of a diluent recovery unit in Alberta, Canada after receiving all required regulatory approvals.

Additionally, USD and Gibson have finalized all required commercial agreements with ConocoPhillips Canada to fully underpin and sanction the construction of the initial phase of the DRU at 50,000 barrels per day of inlet bitumen blend capacity and enable rail shipments of DRUbit to the US Gulf Coast.

Construction of the DRU is expected to begin in April 2020, and the DRU could be placed into service later in the second quarter of 2021.

USD and Gibson are currently in commercial discussions with other potential producer and refiner customers to secure additional long-term, take-or-pay agreements to support future expansions of capacity at the DRU.

Oil prices in the US plunged to below $30 a barrel, Brent crude fell by 10% and several industry shows have been postponed or cancelled as the world grapples with the coronavirus pandemic.

Oil prices hit their lowest since 2016 as a growing number of countries in Europe went into lockdown with borders closed and flights cancelled. Some experts have said that global efforts to contain the spread of the virus look set to trigger the most severe contraction in annual oil demand in history.

Vandana Hari, founder of Vanda Insights in Singapore, says: 'Global financial markets are being rattled by the growing severity of the coronavirus and at the same time spooked by the enormity of the stimulus measures to combat it.'

Many event organisers are now taking precautionary measures as the global economy attempts to recover and governments impose stricter social distancing measures. The following shows have been postponed:

• 2nd Annual Tanks & Terminals 2020 will now take place on August 24 – 26 in Dubai, UAE. www.marcusevans-conferences-middleeastern.com

• 22nd Annual International Aboveground Storage Tank Conference & Trade Show (NISTM) will now take place on July 27 – 29 in Orlando, Florida. www.nistm.org

• Cryogenic Storage Tanks will now take place on October 22-23 in Munich, Germany. www.tuvsud.com

• ChemUK 2020 will now take place on September 16 & 17 in Manchester, UK. www.chemicalukexpo.com