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Latest storage news


Terminal News
August 5, 2019
Stolthaven Terminals divests Australian chemical terminal
Stolthaven Terminals has divested its Altona chemical storage terminal to the Australasian Solvents & Chemicals Company (ASCC).The facility in Melbourne, Australia, offers specialised blending facilities, storage and warehousing of both chemical and non-chemical products as well as combustible and/or dangerous goods in bulk and packaged products...

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Stolthaven Terminals has divested its Altona chemical storage terminal to the Australasian Solvents & Chemicals Company (ASCC).

The facility in Melbourne, Australia, offers specialised blending facilities, storage and warehousing of both chemical and non-chemical products as well as combustible and/or dangerous goods in bulk and packaged products.

The terminal offers storage for a wide range of dry products, petroleum and chemical liquids.

Guy Bessant, president of Stolthaven Terminals, says: 'A decision was made to divest the Altona terminal in line with our regional strategy. We know ASCC well as an existing customer, with a strong brand in the market, and know they will provide continuing support to our valued customers in the area. The Australian chemical market will benefit from ASCC's expertise as they take on management of the site.

ASCC's group CEO Leanne Wilkins says: 'For ASCC to invest in Altona, we know that we are committing to the Australian manufacturing markets long term. Altona will continue its operations in supplying quality blending, storage and distribution facilities to existing and future customers.'



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Terminal News
August 5, 2019
Altus Midstream acquires interest in Enterprise pipeline
Altus Midstream has acquired a 33% equity interest in the Enterprise Products Partners subsidiary that owns the Shin Oak natural gas liquids pipeline.The pipeline transports growing NGL production from multiple basins, including the Permian, to Enterprise's NGL fractionation and storage complex in Mont Belvieu, Texas...

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Altus Midstream has acquired a 33% equity interest in the Enterprise Products Partners subsidiary that owns the Shin Oak natural gas liquids pipeline.

The pipeline transports growing NGL production from multiple basins, including the Permian, to Enterprise's NGL fractionation and storage complex in Mont Belvieu, Texas.

Supported by long-term customer commitments, the pipeline will ultimately have capacity to transport up to 550,000 barrels per day of NGLs by the fourth quarter of 2019.

NGLs for the system are sourced primarily from Enterprise's Orla natural gas processing complex in Reeves County, Texas, as well as Apache Corporation's Alpine High play, via a long-term NGL sales agreement committing 100% of NGLs from that acreage.

Clay Bretches, CEO of Altus Midstream, says: 'Shin Oak is integrated with Enterprise's existing pipelines and gas processing plants, which provide supply from multiple basins. This integration, along with connectivity to Enterprise's fractionation complex in Mont Belvieu, drives substantial volume through the pipeline and provides superior flow assurance for customers, which is significant competitive advantage for attracting additional third-party business.'

'We are very pleased to have Altus as a partner in the Shin Oak Pipeline, which facilitates continued growth of Permian Basin NGLs that are expected to more than double by 2025,' says A.J. 'Jim' Teague, CEO of Enterprise's general partner.

'In addition to providing much-needed takeaway capacity for NGLs, Shin Oak is a key asset in Enterprise's integrated midstream network, which provides unparalleled access to the most attractive domestic and international markets.'



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Terminal News
August 2, 2019
Pin Oak starts construction on new oil storage trading hub
Pin Oak Corpus Christi has started construction work on its new crude oil trading hub, including the construction of a storage facility.The Taft Terminal will complement Pin Oak's Corpus Christi terminal, a four million barrel storage facility with export-capable Suezmax and MR docks, due to start operations in the fourth quarter of 2019...

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Pin Oak Corpus Christi has started construction work on its new crude oil trading hub, including the construction of a storage facility.

The Taft Terminal will complement Pin Oak's Corpus Christi terminal, a four million barrel storage facility with export-capable Suezmax and MR docks, due to start operations in the fourth quarter of 2019.

Construction of 1.7 million barrels of crude oil tankage at Taft Terminal has started, and there is potential to build an additional 2.8 million barrels of crude oil tankage. The terminal will have connectivity to Corpus Christi and Ingleside markets, Pin Oak Corpus Christ, including its key infrastructure and long-haul pipelines.

Additionally, the company has announced new interconnection agreements with Epic Pipeline and Red Oak Pipeline. The Epic Pipeline interconnection is capable of receiving crude oil from the Permian Basin and Eagle Ford Shale while the Red Oak Pipeline interconnection is capable of receiving crude oil from the Permian Basin, Bakken Shale, DJ Basin and Niobrara Basin.

Corey Leonard, CEO of Pin Oak, says: 'The execution of these new pipeline interconnections and commercial commitments supports the build-out of our Taft Terminal, and creates a unique service offering. Pin Oak's ability to receive product volumes from the most prolific basins in the US will deliver to our customer's unparalleled optionality and access to both domestic and international markets alike, further facilitating essential diversification for US producers.

'Our activities at Pin Oak's Taft Terminal only add to the economic growth for the local economy in and around Corpus Christi.'



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Terminal News
August 2, 2019
Fujairah: Oil product stocks down 5.8%
As of Monday, July 29 total oil product stocks in Fujairah stood at 18.255 million barrels, drawing down 1.124 million barrels week on week. Overall product stocks fell by 5.8% with a large drawdown in heavy distillate stocks, while light stocks showed a small build with middle distillate stocks largely unchanged...

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As of Monday, July 29 total oil product stocks in Fujairah stood at 18.255 million barrels, drawing down 1.124 million barrels week on week. Overall product stocks fell by 5.8% with a large drawdown in heavy distillate stocks, while light stocks showed a small build with middle distillate stocks largely unchanged.

Stocks of light distillates rose by 241,000 barrels reflecting a build of 3.2% week on week. Total volumes stood at 7.724 million barrels. The gasoline market East of Suez was seen as steady with a largely balanced picture, trade sources noted. 'Physical [gasoline] market is still quite balanced, sentiment has gotten weaker, especially after the news of China's third round export quotas,' a source noted. The FOB Singapore 92 RON gasoline crack against front month ICE Brent crude futures stood at $5.48/b Tuesday, reflecting a fall of 4 cents/b week on week, S&P Global Platts data showed.

Stocks of middle distillates fell by 0.3%, subtracting 6,000 barrels to stand at 2.095 million barrels at the start of the week. Middle distillate sentiment East of Suez remained relatively bullish with the continuous supply tightness in North Asia supporting the market, sources noted. 'It's the refinery turnaround season, plus there are still some ongoing outages,' a source said. The strength was reflected in the EFS which reflects the spread between 10ppm Singapore gasoil swaps and ICE low sulfur gasoil futures, which flipped into positive territory for the first time in 10 months at the start of the week.

Stocks of heavy distillates fell by 13.9%, dropping by 1.359 million barrels on the week to stand at 8.436 million barrels. Activity in Fujairah has picked up with availability of bunker barges at the port tightening as a result, sources said. 'Cargo is not tight, just barges [are] busy with jobs,' a source noted. The spread between 380 CST delivered bunker in Singapore and Fujairah was assessed at $27.75/mt yesterday with the South East Asian port continuing to see higher prices. Tuesday's spread reflected a rebound from the $15.75/mt spread between the two ports seen a week ago.



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Terminal News
August 2, 2019
Oil market buffers should offer comfort amid geopolitical risks
Paul Hickin, director, EMEA oil news & analysis at Platts explains the importance of buffers and spare storage capacity in global oil markets amid geopolitical uncertainty Concerns over oil demand growth, stubborn stock levels and strong US supply have emboldened OPEC and its allies to keep cutting output...

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Paul Hickin, director, EMEA oil news & analysis at Platts explains the importance of buffers and spare storage capacity in global oil markets amid geopolitical uncertainty

Concerns over oil demand growth, stubborn stock levels and strong US supply have emboldened OPEC and its allies to keep cutting output. But the risk of miscalculation and significant disruption in the Middle East, sanctions on Venezuela and geopolitical uncertainties in countries such as Libya and Nigeria have raised the stakes for security of supply. OPEC's growing spare capacity in particular, along with strategic stocks, should provide an extra layer of comfort.

When a market is experiencing a dramatic surplus of inventories, political risks to supply tend to be less relevant to or supportive of oil prices. This was the case during the oil price collapse from 2014-2016, when political risks to supply appeared to have had a relatively muted impact on oil prices, with fundamentals trumping politics as prices fell to below $30 a barrel from over $100/b amid a market flooded with OPEC crude. This helps to explain why the market has moved little on a spate of incidents this year around the Strait of Hormuz, a key shipping and oil artery.

But with US supply growth having stalled, albeit at around 12 million b/d and OPEC and Russia and its alliance determined to bring down stocks via its 1.2 million b/d agreement through to the end of the first quarter of 2020, the oil market could become more exposed to geopolitical upheaval.

A prolonged supply disruption amid depleted commercial oil stocks would see the market hone in on spare capacity - the ability to bring regular barrels to the market for a sustained period of time - for reassurance. Spare capacity is the most effective and dependable area from which markets can bring sustainable production volumes online to replace supply disruptions elsewhere. Spare capacity played a significant role in stabilising oil markets during previous periods of major supply outages, such as 1979 and 1990, with the Iranian Revolution and Gulf War respectively.

The question is whether there is sufficient 'swing' production. The International Energy Agency estimates OPEC had some 3.16 million b/d of spare production capacity available in the second quarter (stripping out Iran), with more than 2 million b/d of that held by Saudi Arabia. That equates to just over 3% of global demand. While spare capacity is low in the broader scheme of things and leaves the oil market relatively susceptible to an outsized, disruptive, geopolitical event, it has recovered from just 1.91 million b/d in the final quarter of last year. Moreover, Iran has 1.43 million b/d available on top should sanctions end, according to IEA calculations.

Saudi Arabia is well aware of its importance. Its national oil company, Saudi Aramco, said in July it could potentially bring 12 million b/d to the market on a sustained basis having made plans to expand the Marjan and Berri fields, adding 550,000 b/d of Arabian Crude to its capacity. That compares with production of less than 10 million b/d, for many months this year.

The swing producer's mettle was tested late last year, ramping up output to more than 11 million b/d to counter any supply shortfall from Iran sanctions as Brent touched $86/b before waivers granted to eight key consumers of Iran crude led to prices to nosedive to $50/b before the year was out. Some analysts doubt whether Saudi Arabia can go much above 11 million b/d for a lengthy period of time.

There are also strategic and emergency oil stocks – those held in storage by countries for a rainy day – that also act a little like spare capacity but with important differences. Under IEA and EU rules, member countries must maintain emergency stocks of crude oil and/or oil products equal to at least 90 days of net imports or 61 days of consumption, whichever is higher. They were very effective in insulating customers from the 1 million b/d Druzhba pipeline fiasco earlier this year after contaminated crude from Russia meant European buyers had to tap reserves.

The US holds close to 650 million barrels of crude in its emergency fuel storage, known as the Strategic Petroleum Reserve, which can meet the nation's demand for over a month. Two-thirds of this crude is considered to be of a sour viscous grade, ideal for the majority of US refineries and processing plants. Although presidents have the right to tap into the stockpile in cases of 'severe energy supply interruption', its use is tightly regulated.

Key consumers of heavier sourer Middle Eastern crudes India and China have also looked to bolster oil stocks. Indian government officials have said there is an urgent need to seal more deals to lease SPR storage facilities as well as build more strategic reserves capacity. Meanwhile, China has continued to increase its oil buffers and its moves to destock this year has also played a role in keeping a lid on oil prices, analysts have said.

But while emergency oil stocks can provide a temporary buffer to supply disruptions, spare capacity is a more reliable and sustainable cushion. Analysts have noted that storage and stocks do play a role in smoothing the cycle, but there are differences such as the size of spare capacity, how quickly it could become available, and that it can be used as a policy instrument to smooth the impact of disruptions.

The IEA reacted to the latest developments in the Strait of Hormuz over the summer – which transports a fifth of all global petroleum liquids consumption through its waterway – by noting emergency oil stocks can cover supply disruptions for an 'extended period', adding that global oil supply had exceeded demand by 900,000 b/d in the first half of the year and commercial stocks in the OECD countries totalled more than 2.9 billion barrels — higher than the five-year average.

But while the IEA talks up the oil market's buffers - including the emergency stocks, additional supply growth from US shale, Canada, Brazil and elsewhere and growing spare capacity – the market will still react to any supply shock. For example, when the US and IEA acted in coordination to replace disrupted Libyan supply in 2011, the duration of the resulting price relief appeared limited.

The oil market's buffers may well provide the security of supply and the opportunity for OPEC to rebalance the market, but they are not a cure-all for geopolitical risk.

Hickin will be talking more about global supply and demand balances as well as current market structures during the first day of the Tank Storage Asia conference in Singapore on September 25. For more information visit www.tankstorageasia.com.



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Terminal News
July 31, 2019
Eni completes 20% acquisition of ADNOC refining
Eni has completed the acquisition of a 20% equity interest in ADNOC Refining, increasing the company's refining capacity by 35%.ADNOC Refining refines more than 922,000 barrels per day of crude at its Ruwais and Abu Dhabi based refineries. The transaction is one of the world's largest-ever in the refining business and reflects the sale, quality and growth potential of ADNOC's refining assets...

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Eni has completed the acquisition of a 20% equity interest in ADNOC Refining, increasing the company's refining capacity by 35%.

ADNOC Refining refines more than 922,000 barrels per day of crude at its Ruwais and Abu Dhabi based refineries. The transaction is one of the world's largest-ever in the refining business and reflects the sale, quality and growth potential of ADNOC's refining assets.

Ruwais is the fourth biggest single-site refinery in the world and is the focus of further expansion and integration to develop the world's largest single-site refining and petrochemicals complex.

The final cash price is $3.24 billion.

Additionally, Eni, ADNOC and Austria's OMV have incorporated a new trading joint venture at Abu Dhabi Global Market, with the same shareholding as in ADNOC Refining. Trading is expected to begin in 2020 when all necessary processes, procedures and systems are in place. Eni and OMV will provide ADNOC with know-how, operational experience and support to accelerate the development of the trading joint venture, enabling ADNOC and its partners to optimise their systems and better manage their international product flows.

With this transaction, Eni enters the UAE downstream sector and increases it global refining capacity by 35%. It follows the company's strategy of making Eni's overall portfolio more geographically diversified and more balanced along the value chain.



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Terminal News
July 31, 2019
Enterprise & Chevron sign agreements for oil terminal
Enterprise Products Partners and Chevron USA have signed long-term agreements supporting the development of Enterprise's Sea Port Oil Terminal in the Gulf of Mexico.The SPOT project comprises onshore and offshore facilities, including a fixed platform located 30 nautical miles off the Brazoria County, Texas, coast in 115 feet of water...

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Enterprise Products Partners and Chevron USA have signed long-term agreements supporting the development of Enterprise's Sea Port Oil Terminal in the Gulf of Mexico.

The SPOT project comprises onshore and offshore facilities, including a fixed platform located 30 nautical miles off the Brazoria County, Texas, coast in 115 feet of water. SPOT is designed to load VLCCs at rates of around 85,000 barrels per hour, or two million barrels per day. The SPOT design also meets or exceeds federal requirements and, unlike existing and other proposed offshore terminals, is designed with a vapour control system to minimise emissions.

The long-term agreements with Chevron support Enterprise's final investment decision. The construction of the facility is subject to the required approvals and licenses from the federal Maritime Administration, which is currently reviewing the SPOT application.

A.J. 'Jim' Teague, CEO of Enterprise's general partner, says: 'We are very pleased to announce these agreements with Chevron. As a result, we are announcing our final investment decision for our offshore crude oil terminal, subject to government approvals.

'The SPOT facility provides opportunity to significantly expand our export capacity and access multiple market centers as we increase our crude oil produced out of the Permian,' adds George Wall, president of Chevron Supply and Trading.

As domestic crude oil and NGL production continues to outstrip US demand and marine terminals approach full utilisation, projects like SPOT and the expansion of Enterprise's LPG, ethane and petrochemical capabilities will be essential to balancing the market and meeting global demand for US production.



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Terminal News
July 31, 2019
Vopak expands US & Australian terminals
Vopak has announced plans to expand its Deer Park chemical terminal in Houston and its terminal in Australia.The storage operator will expand its Deer Park facility in the port of Houston, US with an additional 33,000 m3 of chemical storage, which is expected to be commissioned in the second quarter of 2021...

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Vopak has announced plans to expand its Deer Park chemical terminal in Houston and its terminal in Australia.

The storage operator will expand its Deer Park facility in the port of Houston, US with an additional 33,000 m3 of chemical storage, which is expected to be commissioned in the second quarter of 2021. The company is also adding 105,000 m3 of storage at its terminal in Sydney, Australia, to cater for demand for clean petroleum products and aviation fuels. This capacity is expected to be commissioned in the second quarter of 2021.

Additionally, Vopak has acquired a 10.7% equity share in Hydroenious LOHC Technologies, which develops innovative technology to allow for safe and cost-effective logistics of hydrogen. The combination of Vopak's terminal network with the liquid organic hydrogen carrier technology has the potential to create a breakthrough in the storage and transportation of renewable energies.

In its half year 2019 financials, Vopak's EBITDA increased by €52 million and reported occupancy rates of 85%, which reflects planned temporary conversion activities related to IMO 2020 readiness and ongoing market conditions at oil hub terminals, whereas other market segments remained solid.

Looking ahead, the company's expansion programme will add 3.2 million m3 in 2018 and 2019, of which 2.1 million m3 was commissioned up to the end of June 2019. Fuel oil capacity conversions for the IMO 2020 bunker fuel regulations are progressing well and will support new market requirements as from the fourth quarter of 2019.

CEO Eelco Hoekstra says: 'The first half of 2019 was important as we have taken further steps in the delivery of our strategy and the alignment of our portfolio based on long-term market developments.

'We have taken significant new capacity into operations to meet new customers demand. Together with our partners we fully commissioned the industrial terminal PT2SB in Malaysia and celebrated the opening of the LPG export terminal in RIPET in Canada. In addition, we expanded our share in the LNG import terminal in Pakistan.

''The divestment of some of our European assets will, after completion, shift our portfolio further towards industrial, chemical and gas terminals. We aim to grow our portfolio in line with market developments and expect our growth investment momentum in 2019 to continue in 20202. Looking further ahead, we continue to explore opportunities in new energies and have today announced our first investment to facilitate the development of hydrogen logistics.

'Our digital transformation is progressing well with the global roll-out of our cloud-based digital terminal management system and we have made excellent progress with our new business development projects.'



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Terminal News
July 30, 2019
Prostar Capital completes NuStar St Eustatius acquisition
Prostar Capital has completed the acquisition of NuStar's oil storage terminal on the island of St. Eustatius in the Caribbean for $250 million.The facility is a complementary acquisition for Prostar's existing storage terminal portfolio, Global Terminal Investments, which also owns Fujairah Oil Terminal and GTI Fujairah, both in the UAE...

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Prostar Capital has completed the acquisition of NuStar's oil storage terminal on the island of St. Eustatius in the Caribbean for $250 million.

The facility is a complementary acquisition for Prostar's existing storage terminal portfolio, Global Terminal Investments, which also owns Fujairah Oil Terminal and GTI Fujairah, both in the UAE.

The St. Eustatius terminal has been rebranded as GTI Statia. It is located along major shipping lanes serving US crude import and export markets, as well as the regional markets for fuel oil and refined petroleum products in the Caribbean and Latin America. It comprises 2.3 million m3 of capacity spread across 60 commercia tanks along with extensive marine infrastructure that can accommodate fully-laden VLCC and ULCC vessels.

Steve Bickerton, senior managing director of Prostar, says: 'This transaction is consistent with Prostar's strategy of identifying assets that are strategically positioned to serve their customers, and where opportunities exist to de-risk the business's cash flows and grow shareholder value.

'Prostar actively looks to augment its portfolio companies through expansion capital, and we see several paths to do that with GTI Statia.

Dave Noakes, senior managing director of Prostar, adds: 'The acquisition of the GTI Statia terminal represents the third storage terminal investment for Prostar through our GTI platform and increases the underlying capacity of that business to more than 3.4 million m3 of storage. We will continue to build and diversify the platform through future acquisitions of terminals located in key global energy storage and trading hubs.'

'We are pleased that this sale allows us to re-deploy the sales proceeds to continue to lower our leverage and to fund growth projects in our core North American business, allowing us to focus our resources on building out core asset base, as well as continuing to strengthen our financial metrics to generate stable, consistent growth for our unitholders,' says Brad Barron, president and CEO of NuStar Energy.



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Terminal News
July 30, 2019
Klaipėdos Nafta submits tender for Cyprus LNG terminal
Klaipėdos Nafta has submitted a tender for the design, construction and operation of the Cyprus LNG import terminal.If successful, the company, which is partnering with a consortium of subcontractors, will provide long-term operation and maintenance services for the terminal...

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Klaipėdos Nafta has submitted a tender for the design, construction and operation of the Cyprus LNG import terminal.

If successful, the company, which is partnering with a consortium of subcontractors, will provide long-term operation and maintenance services for the terminal.

The facility will include a floating storage and regasification unit, a jetty for mooring the FSRU, a jetty borne gas pipeline and related infrastructure to secure supply of natural gas to the largest Vasilikos Power Plant in Cyprus. The project has been granted EU support accounting for more than €100 million. The total project budget is estimated at around €500 million.

Together with two other European subcontractors, KN is acting as major subcontractors to heavily support and contribute to the strength of the consortium consisting of Samsung C&T, Posco E&C, Mitsui O.S.K Lines and Osaka Gas. Consortium parties have vast experience in the design and development of LNG infrastructure, operate one of the largest LNG carrier fleets worldwide and supply FSRUs to the global market as well as operate numerous LNG terminals. If successful, KN will team up with Mitsui O.S.K Lines and Osaka Gas to operate and maintain the floating terminal for a period of up to 20 years.

Tadas Matulionis, KN's LNG business development director, says: 'KN possesses the most relevant experience of delivering and operating a very similar LNG import terminal in Klaipėda. Within the EU, Klaipėda LNG terminal is the most recent FSRU project, meeting high quality and efficiency standards. If selected, KN would become the largest operator of floating LNG terminals in Europe, offering further benefits of operational excellence to our clients.'

The winners of the tender will be selected later in 2019, with the terminal expected to start operations in 2021.



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Terminal News
July 29, 2019
First phase of Jurong Port Tank Terminal opens
The first phase of Jurong Port Tank Terminals has officially opened, with all capacity in the first phase being fully leased to PetroChina.The first phase of the $200 million clean petroleum products terminal, a joint venture between Jurong Port and Oiltanking, comprises 252,000 m3 of clean storage and petrochemicals capacity...

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The first phase of Jurong Port Tank Terminals has officially opened, with all capacity in the first phase being fully leased to PetroChina.

The first phase of the $200 million clean petroleum products terminal, a joint venture between Jurong Port and Oiltanking, comprises 252,000 m3 of clean storage and petrochemicals capacity.

The terminal, which started partial operations in April 2019, is expected to handle seven million tonnes of clean petroleum products a year.

Speaking at the opening ceremony of the facility, Chee Hong Tat, senior minister of start for trade and industry, said that the facility includes features such as dedicated clean storage capacity as well as dedicated tank inlet and outlet lines to prevent contamination.

Additionally, the facility also has a direct pipeline to Jurong Island's petroleum and petrochemical network, which allows firms to benefit from up to 30% savings in transportation and handling costs compared to using vessels.

The second phase of the facility will add another 310,000 m3 of clean petroleum storage, bringing total capacity at the facility to 562,000 m3.

Jurong Port CEO Ooi Boon How saus that the port is in deep discussions regarding the second phase of the project.



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Terminal News
July 26, 2019
Transnet & IFC progress LNG storage terminal project
Transnet and IFC, a member of the World Bank Group, have signed a cost-sharing agreement for the development of a LNG storage and regasification terminal at the Port of Richards Bay.The agreement also covers the re-purposing of Transnet pipelines for natural gas transmission to inland markets...

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Transnet and IFC, a member of the World Bank Group, have signed a cost-sharing agreement for the development of a LNG storage and regasification terminal at the Port of Richards Bay.

The agreement also covers the re-purposing of Transnet pipelines for natural gas transmission to inland markets. Transnet has identified significant industrial demand for natural gas and opportunities to leverage its ports, pipelines and rail assets to facilitate private investment in gas infrastructure in South Africa.

This initiative will unlock a backbone of the country's natural gas network infrastructure to serve existing and growing gas markets, consisting largely of industrial and commercial off-takers located in KwaZulu-Natal, Mpumalanga, Free State and Gauteng provinces. The Richards Bay Nautral Gas Network project will complement the delivery of LNG to new markets in the Eastern Cape and Western Cape provinces through the ports of Ngqura and Saldanha Bay and will support the government's future gas-to-power projects.

The NGN project incorporates the LNG storage and regasification terminal in the Port of Richards Bay, plans for the re-purposing of Transnet's Lily Pipeline and Durban-Johnannesburg Pipeline for the transmission of natural gas, and the establishment of virtual pipelines for LNG to be transported to various markets by road and rail.

IFC has committed $2 million as part of the cost sharing agreement.

The terminal will be developed by private investors that will be selected through a competitive process to own a majority stake in a planned special purpose vehicle. The project is expected to be operational by 2024.

The expansion of South Africa's natural gas network will help modernise the energy usage in the region and increase access to natural gas for end consumers.



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Terminal News
July 25, 2019
Total to develop Benin LNG floating terminal
Total, the Republic of Benin and Société Béninoise d'Energie Electrique have signed agreements to develop a LNG import floating terminal offshore of Benin.The agreements also cover the supply of up to 0.5 million tonnes per annum of regasified LNG from Total's global portfolio to Benin for 15 years, starting in 2021...

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Total, the Republic of Benin and Société Béninoise d'Energie Electrique have signed agreements to develop a LNG import floating terminal offshore of Benin.

The agreements also cover the supply of up to 0.5 million tonnes per annum of regasified LNG from Total's global portfolio to Benin for 15 years, starting in 2021.

Total will develop and operate the regasification infrastructure that will comprise a floating storage and re-gasification unit located offshore Benin and an offshore pipeline connection to the existing and planned power plants in Maria Gléta.

Laurent Vivier, senior vice president gas at Total, says: 'This project is in line with Total's strategy to develop new gas markets by unlocking access to LNG for fast-growing economies. We are very pleased to have been entrusted by the Benin authorities to develop LNG imports and support a broad adoption of natural gas in the country.

'Access to LNG will help Benin to meet growing domestic energy demand and add more natural gas to the country's current energy mix, hence reducing its carbon intensity.'

Dona Jean-Claude Houssou, minister of energy of Benin, says that the new 127 MV power station at Maria Gléta, with imported liquefied natural gas, on preferential terms and will position Benin as the crossroads for gas and electricity in the subregion.



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Terminal News
July 25, 2019
Fujairah: Oil product stocks up 1.6%
As of Monday, July 22 total oil product stocks in Fujairah stood at 19.379 million barrels, adding 307,000 barrels week on week. Overall product stocks rose by 1.6% with a large build in heavy distillate stocks and smaller draws in light and middle distillate stocks...

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As of Monday, July 22 total oil product stocks in Fujairah stood at 19.379 million barrels, adding 307,000 barrels week on week. Overall product stocks rose by 1.6% with a large build in heavy distillate stocks and smaller draws in light and middle distillate stocks.

Stocks of light distillates fell by 675,000 barrels reflecting a draw of 8.3% week on week. Total volumes stood at 7.483 million barrels. Gasoline markets in both the East and West eased as disruptions from Hurricane Barry to US Gulf Coast refining proved to be less than feared. The FOB Singapore 92 RON gasoline crack against front month ICE Brent crude futures fell to a three-week low of $5.52/b yesterday, S&P Global Platts data showed. However, premiums for Arab Gulf gasoline continued to rise amid news that the RFCC unit at Abu Dhabi's Ruwais Refinery West is to undergo maintenance and is currently offline, according to a ADNOC spokesman.

Stocks of middle distillates fell by 9.2%, subtracting 213,000 barrels to stand at 2.101 million barrels at the start of the week. Middle distillate sentiment remained positive in the East of Suez. Summer travel demand in Europe continued to bolster sentiment in the jet fuel market, while gasoil supply has so far proved less than expected. Traders also noted the ongoing tensions along the Strait of Hormuz could constrain the flow of product out of the Arab Gulf, with a knock-on effect on India and the rest of Asia. 'Even if there are no disruptions, there will be an impact, insurance for vessels loading jet in the [Arab] Gulf will be higher. Indian cargoes should all be going West,' said a Singapore-based trader.

Stocks of heavy distillates rebounded by 13.9%, building by 1.195 million barrels on the week to stand at 9.795 million barrels. Stocks fell to a four-month low last week, but bounced back to close to previous level. Bunker demand in Fujairah is holding up despite recent security concerns. Some ships are opting to bunker in Singapore instead, but lower prices have helped to keep Fujairah supported. 'Demand has been more due to high bunker premiums in Singapore and tightness there, but the war risk premiums are still taking a hit on things here,' said a Fujairah bunker supplier. The spread between 380 CST delivered bunker in Singapore and Fujairah was assessed at $15.75/mt yesterday, compared to over $30/mt a week ago.



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Terminal News
July 24, 2019
FERC creates new division amid surge in LNG terminal applications
The US Federal Energy Regulatory Commission has created a new division to accommodate the increasing number of new LNG export terminal applications.The new division, LNG facility review and inspection, will sit in its Office of Energy Projects and will comprise 20 existing LNG staff members and eight additional full-time staffers and will be based in Houston...

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The US Federal Energy Regulatory Commission has created a new division to accommodate the increasing number of new LNG export terminal applications.

The new division, LNG facility review and inspection, will sit in its Office of Energy Projects and will comprise 20 existing LNG staff members and eight additional full-time staffers and will be based in Houston.

FERC chairman Neil Chatterjee says: 'As the demand for US LNG and the number and complexity of project applications has grown, the commission has experienced a similar growth in the need for FERC to expand its oversight in this programme area.

'Much of the work related to these LNG projects, and the expertise it requires, is based in and around Houston, the so-called 'Energy Capital of the World'. For that reason, after careful research and evaluation, the commission has determined we should direct our newest efforts to recruiting staff in the area to build upon the good work already being done on these issues at our D.C. headquarters.

The creations of DLNG and expansion in Houston will help prepare FERC for the additional work necessary once LNG project applicants make final investment decisions and move toward construction.



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Terminal News
July 24, 2019
Gazprom brings new fuel terminal into operation
Gazprom has brought its new Gladkoye fuel terminal into production, the first to be built under the company's new terminal infrastructure development strategy.The facility in the Tosnensky District of the Leningrad Oblast, is unique in terms of its technological equipment and management processes...

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Gazprom has brought its new Gladkoye fuel terminal into production, the first to be built under the company's new terminal infrastructure development strategy.

The facility in the Tosnensky District of the Leningrad Oblast, is unique in terms of its technological equipment and management processes.

The terminal is the only fuel terminal in Russia equipped with metering facilities that allow oil products' volumes and metrics to be controlled automatically on receipt from rail tank cars and onward shipping by road, with all data on fuel transportation and movement being processed and transmitted through the Gazprom Neft Neftekontrol system online.

A digital twin of the terminal contains all information on the project since the start of its construction, allowing virtual access for the facility's management.

The facility can handle the transshipment of up to one million tonnes of oil products every year, with its terminal offering storage capacity for up to 40,000 m3 at any one time. Cutting-edge environmental protection strategies have been implemented at Gladkoye, including a vapour recovery system and treatment facilities.

All of the company's target terminals will be upgraded based on the Gladkoye model by 2025. Following the completion of its extensive terminal reconstruction programme, transshipment volumes through its own network are expected to increase by more than 20%, with average transshipment volumes per terminal increasing by 58%.

Alexander Dyukov, CEO and chairman of the management board at Gazprom Neft, says: 'This new terminal will become a major facility within Gazprom Neft's logistics system, ensuring stable supplies of high-quality oil products to the compnay's own filling stations, as well as to our clients throughout the north-west region. The innovative technologies used in building the Gladkoye terminal will be rolled out in modernising our terminals network, which we will be carrying out until 2025.'



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