Latest storage news
The US is only months away from achieving full energy independence and total primary energy production will outpace primary energy demand by 30% in 2030.
According to Rystad Energy's latest forecast, this milestone follows a strong period of growth in both hydrocarbon and renewable resources. Sindre Knutsson, vice president on the company's gas markets team, says that it forecasts that the US will have primary energy surplus – and not a deficit – by February/March 2020, depending on the winter season.
'Going forward, the US will be energy independent on a monthly basis, and by 2030 total primary energy production will outpace energy demand by about 30,' Knutsson says.
Rystad also predicts that the next monthly release from the Energy Information Agency will show that the country has been self-sufficient in primary energy from October 2018 through to September 2019, the first time to have happened since May 1982.
Knutsson adds: 'In 2018, the US has a petroleum deficit of $62 billion, equivalent to 10% of the country's overall trade deficit of $621 billion, including goods and services. These changes in the US energy balance could turn its petroleum deficit of $62 billion in 2018 to a surplus of $340 billion by 2030. That adds up a $400 billion shift, in the space of only dozen years, thanks primarily to the gargantuan rise of output from the US shale sector.'
The company forecasts that total primary energy production will increase from 95 quadrillion Btu in 2018 to 138 quadrillion Btu in 2030. Crude oil and natural gas production will be the two main contributors to primary energy supply growth in the period, with oil accounting for 75% of the growth and gas 38%. Crude output driven by production in the Permian, Bakken and Eagle Ford shale plays is forecast to grow from 21.5 quadrillion Btu in 2018 to 39 quadrillion Btu in 2020.
On the demand side, Rystad forecasts a cumulative average growth of 0.4% from 2018 to 2030, to about 106 quadrillion Btu in 2030.
'The emerging energy surplus will make the US less vulnerable to foreign energy-related politics and facilitate growing exports. While renewable energy output will be consumed domestically, the future for oil and gas exports is bright.'
Energy Transfer has issued a comprehensive commercial tender package to engineering, procurement and construction contractors to submit final commercial bids for the Lake Charles LNG project.
The project, which is being jointly developed by Energy Transfer and Shell US LNG, would modify Energy Transfer's existing LNG import facility located in Louisiana to add LNG liquefaction capacity of 16.45 million tonnes per annum for export to global markets. The commercial bids are expected to be received in the second quarter of 2020.
The commercial tender expands on the invitation to tender in May that focused on the technical scope of the project, specifically the contractors' verification of the engineering and design of the proposed liquefaction facility. The commercial tender invites the EPC contractors to develop a comprehensive commercial bid for the lump sum turnkey contract based on a fully developed scope related to design, engineering, technical and safety specifications for the construction, commissioning and start-up of the proposed Lake Charles LNG project.
Tom Mason, president of Energy Transfer LNG, says: 'This is an important step in the continued development of this LNG project with Shell. This project capitalises on repurposing existing brownfield regas assets to achieve cost savings in the construction of the liquefaction facility. The project will also benefit from the unique strength of Energy Transfer as a leading natural gas pipeline operator with extensive connectivity to the Lake Charles facility.'
Frederic Phipps, Shell, vice president of Lake Charles, adds: 'We look forward to continue leveraging our global experience in LNG development and build on our positive collaboration with EPC contractors to drive value and competitiveness throughout the bid process.'
CLH has started operations at six new airports, including managing fuel storage facilities and providing into-fuelling services, in Tenerife Sue, Valladolid, San Sebastián, León, Melilla and Granada.
The company's management of the fuel storage facility and hydrant network in Tenerife-Sur represents its first operation in the Canary Islands. The airport is the second largest in volume of activity in the Canary Islands, with 450,000 m3 of fuel supplied last year.
Tenerife Sur is the fifth most important airport where CLH Aviación is present in Spain and the sixth hydrant network to be managed by the company in the country, after Adolfo Suárez Madrid-Barajas, Barcelona-El Prat, Málaga, Palma de Mallorca and Alicante.
The company is now present at all the airports that AENA awarded to the company in recent tendering processes, after starting its operations in Burgos in April and in Reus and Sabadell in November.
With topics such as the future demand for hydrogen being discussed and the latest technologies being launched, StocExpo returns to Rotterdam in March 2020 with an eye firmly on the future.
Thousands of professionals, experts and analysts from leading oil majors, including Shell, BP and Exxonmobil, and key terminals and storage players, will attend the three-day exhibition and conference at Rotterdam Ahoy from March 10 – 12, 2020.
These senior decision-makers will be joined by exhibitors from at least 60 countries. Over 120 global brands from across the supply chain such as Matrix Applied Technologies, TRIAX, Emerson, Kanon Loading Equipment and Endress + Hauser have confirmed they will be showing their latest innovations at StocExpo. In addition to these established industry names, iTanks will host the Innovation Zone, home to new technologies and the latest innovations from both inside, and outside, the sector.
The future of the industry is the core focus of the show's highly anticipated conference programme. Experts will share case studies, the latest trends and data as they address not only the current challenges but also all the hottest future developments in terminal safety, efficiency and sustainability.
Conference sessions will include future-thinking topics such as 'Hydrogen: future demand and impact on the storage industry' and 'What will the storage terminal look like in 50 years' time?' Immediate, business critical issues such as 'Brexit: the impact on trade flows and how to minimise disruption' will also be covered within the programme.
Mark Rimmer, StocExpo divisional director, says: 'The bulk liquid storage industry is going through a period of significant transformation. New environmental and safety regulations, breakthroughs in technology, and changes to the political landscape are among a long list of factors that will, without a doubt, have a significant impact on operations moving forward. As a long-established event, strategically positioned in the ARA region, the industry needs us to help it address all of these – and that's exactly what we will do.
'In addition to covering the very real and present challenges, we're lining up world-class content which will throw light on the future of the industry, and how we can adapt to thrive within it. StocExpo will be an unmissable event in 2020.'
Several networking events will be hosted throughout the show, including the official late-night networking party, giving visitors the opportunity to meet industry peers and make new business connections. The Terminal Operators Lounge, sponsored by Tank Storage Magazine, will bring together an elite collection of the industry's terminals operators, including Vopak and Saudi Aramco. Also on the show floor, the Delegate Lounge will provide a further opportunity for the event's visitors to meet, discuss industry issues and debate the session topics.
Visitors and exhibitors can arrange meetings using SEE Connect, a unique one-to-one networking platform that will help them plan their schedule, reach out to key industry contacts and book meetings ahead of time.
Further networking will be done at the prestigious Global Tank Storage Awards. Held after day one of the show, this event celebrates terminal achievements, equipment innovations, ports and successful individuals within the bulk liquid storage industry.
For more information on visiting the exhibition, booking as a delegate for the training, or exhibiting visit www.stocexpo.com
Valero Marketing and Supply de México has signed long-term agreements for the use of three new refined product terminals in Guadalajara, Monterrey, and Altamira, Mexico.
These terminals will support Valero's strategy to expand its product supply chain into high growth markets and are due to start operations in 2021.
The Guadalajara and Monterrey terminals will be built under separate joint venture arrangements with no cash contributions from Valero. Under the long-term terminal service agreements, the two terminals are designed to provide Valero with the capability to receive refined products via unit trains and truck loading facilities to serve regional and local markets. The Guadalajara terminal is expected to have 900,000 barrels of storage capacity while the Monterrey terminal is expected to have 425,000 barrels of storage capacity.
The Altamira terminal, which will be funded and constructed by Operadora de Terminales Maritimas, will offer Valero access, under a long-term terminal service agreement, to a second port facility for imports of refined products. The terminal is expected to have 1.1 million barrels of storage capacity, truck loading facilities to serve local market demand and rail services for distributing products to inland Mexican markets, including Monterrey.
Currently, Valero is marketing products through a third-party terminal in Nuevo Laredo and through three rail-to-truck transload facilities located in Guadalajara, Monterrey, and Chihuahua with plans to begin transloading products in Puebla starting in 2020. This marketing programme is laying the groundwork for Valero's supply chain expansion.
Valero signed long-term agreements in 2017 for three refined product terminals located in the Port of Veracruz, Puebla and Mexico City. All three are expected to begin serving customers in 2020.
The six new terminals, along with the Ferromex rail transportation services from the port facilities in Veracruz and Altamira, will provide Valero with an integrated system of 5.8 million barrels of storage capacity to supply four of the largest metropolitan areas in Mexico as well as smaller fuel markets throughout the country that are under development.
CLH and Plug Power have signed a collaboration agreement to extend the use of hydrogen in Spain through the design, implementation, and operation of hydrogen-based energy solutions.
The agreement aims to expand the use of hydrogen in diverse sectors and applications in which this technology could be a more efficient zero-emission solution, especially for powering forklifts and other equipment operated at ports and airports.
The move will make it possible to offer comprehensive solutions to customers, such as retrofitting existing equipment to use hydrogen, selling new equipment, offering a steady supply of hydrogen and building and maintaining the required infrastructures.
The two companies will cooperate on the development of hydrogen-based energy solutions for diverse sectors and activities, including handling cargo, transporting goods, and other areas where hydrogen-based solutions may afford advantages over the alternatives.
Plug Power is a global leading in the design and marketing of hydrogen fuel cell systems, with 28,000 fuel cells distributed on the international market.
CLH will guarantee a constant hydrogen supply, backed by its experience and knowledge in the design, construction, maintenance and operation of transport and storage networks.
Implico has acquired Dutch cloud specialist Brainum to further expand its position in the tank storage market.
The merger brings together the innovation programmes of both companies, particularly in the future-looking areas of cloud and digitisation.
Implico says that the acquisition marks a big step in its global growth strategy and going forward both partners will bundle their competencies. With OpenTAS, Implico offers a feature-rich automation software for tank farms and refineries. In addition, Implico develops the SAP downstream solutions. With QINO, Brainum has a powerful cloud-based terminal management system in its portfolio. After the merger, Brainum will continue to operate autonomously. The acquisition will give Implico better access to the important Benelux market, especially the Netherlands, where numerous oil and gas companies are located.
'The two firms complement each other perfectly,' says Tim Hoffmeister, CEO of Implico. 'Together with our Dutch colleagues, we will further extend our position as thought leader of digital transformation in downstream. Implico has unique expertise in data communications and web services. Brainum has exceptional knowledge of cloud technologies and tank terminal management. The fusion of this know-how allows for new, future-looking solutions and services.'
Martin Keulemans, managing director of Brainum, adds: 'With Implico as a strong partner by our side, we will proceed on our innovation course. The interest in Brainum is a sign of great appreciation for our team and our work. We are proud and happy to be part of the international Implico family.'
Reliance Industries will invest $9.75 billion to build a crude-oil-to-chemicals complex at its facility in Jamnagar, India.
The project will have a combined capacity to produce 8.5 million tonnes of ethylene and propylene, 3.5 million tonnes of benzene, toluene and xylenes, 4 million tonnes of paraxylene and orthoxylene as well as other derivatives.
Wood Mackenzie senior research analyst Afsar Hussain says: 'The project will be one of the largest crude-to-chemicals projects to exist. The new capacity additions will raise India's olefins capacity by 28%, taking total capacity to over 18 million tonnes. Additionally, the project will provide a significant leap in India's aromatics capabilities, raising total capacity by 80% to around 17 million tonnes.
'The crude feedstock for the project is likely to be supplied by Aramco, who have a 20% stake in Reliance's refining and chemicals business.
'This is a bold move to secure crude market share and counter stagnating demand into transportation fuels, with petrochemicals expected to be the fastest growing oil demand sector through 2040.'
NuStar Energy has launched a binding open season for a capacity expansion of its Midland Trunkline within the NuStar Permian crude system.
The company is proposing to expand the capacity of its 20-inch Midland Trunkline that runs from its Stanton Terminal to Midland Junction by adding pump upgrades at the Stanton terminal. The expansion would offer 60,000 barrels per day of such expanded capacity to the EPIC pipeline at Midland Junction.
NuStar is offering up to 90% of the expanded capacity to shippers making long-term, ship-or-pay commitments, with at least 10% available for walk-up shippers. The project is expected to be in service in the first quarter of 2020.
The open season will end on December 20.
The US Federal Energy Regulatory Commission has voted to authorise Texas LNG Brownsville's two train LNG export project in the Port of Brownsville, Texas.
The 4 million tonnes per annum facility will be build on a 625-acre sites and will enable the export of LNG to established and emerging markets. FERC's authorization is a crucial step in the environmental review process to site, construct and operate the facility.
Vivek Chandra, co-founder and CEO of Texas LNG, says: 'With the Texas LNG Brownsville project, we are developing a mid—sized LNG export facility to better connect abundant and low-cost US natural gas with the world's growing appetite for clean fuels, and we are so pleased to have reached this important milestone that paves the way for a final investment decision.'
Elengy and Rubis Terminal have signed an MoU to launch preliminary studies for the development of an LNG storage facility at the Reichstett storage terminal.
The project is targeting the retail LNG needs of west-central Europe for the industrial and transport sectors.
The planned site will be able to handle an annual volume of 85,000 tonnes of LNG. Its strategic location will guarantee a competitive price to a vast area, including eastern France, Austria, southern Germany, and Switzerland.
The facility will be supplied by rail from one of Elengy's terminals (Fos Tonkin or Montoir-de-Bretagne), thus reducing road traffic. Customers will then have their LNG delivered by trucks charged directly on the site.
The facility will foster the connectivity between retail LNG infrastructure in Europe and will help secure LNG supply for the industrial and transport sectors. Commissioning is scheduled for 2022.
Elengy CEO Sandra Roche-Vu Quang says: 'The cooperation with Rubis Terminals is in line with Elengy's strategy to boost the development of the LNG as an alternative fuel by bringing the supply closer to the clients. Elengy is pursuing its industrial ambition to offer innovative energy transition services, particularly for road transport.'
Bruno Hatem, CEO of Rubis Terminal, adds: 'The development of LNG projects is part of Rubis Terminal's approach to adapt its services and infrastructure to the changing energy demand.'
Vopak has been selected by Gulf Coast Growth Ventures to design, build, own and operate a new industrial storage terminal on the US Gulf Coast.
The terminal will be dedicated to serving the planned 1.8 million tonnes per year ethane cracker being developed by GCGV, the joint venture between ExxonMobil and SABIC.
All liquid products moved by marine vessels will be handled by the new terminal. The total capacity will be around 130,000 m3 and will include pipelines connecting the terminal to the cracker complex.
It is due to be operational consistent with a planned start-up by 2022. The investment is covered with a long-term agreement and is aligned with Vopak's strategy to focus on industrial terminals and to service the chemical industry.
Eelco Hoekstra, chairman of the executive board and CEO of Vopak, says: 'We are very excited to support GCGV with this major industrial development in the US. We are proud of our expertise and long track record of storing vital products.'
SeQuential has completed its Salem facility expansion and has increased its production capabilities by 30%.
The upgrade to its biodiesel plant enables the production of 12 million gallons of low carbon biodiesel annually. The recently completed expansion resulted in a new month production record of just over one million gallons in August, with ongoing production expected to continue at this rate. Upgrades made during the expansion also included additional storage and improved fuel blending and loading systems.
Tyson Keever, COO, says: 'Local demand for low carbon fuel has risen steadily over the past several years, thanks in part to the state's commitment to carbon reduction. We expect that trend to continue and we wanted to be sure we're prepared to meet it.'
The company recently expanded its cooking oil collection and recycling service territory. It now collects cooking oil from nearly 20,000 customers across Oregon, Washington and California. Cooking oil collected in the Pacific Northwest is used to make biodiesel at the SeQuential facility in Salem, while cooking oil collected in California feeds the Crimson Renewable Energy biodiesel plant in Bakersfield, California.
Keyera Corp. has decided to keep its 50% interest in Base Line Terminal near Edmonton, Alberta.
The decision follows the company recently receiving a right of first refusal notice from an affiliate of Kinder Morgan Canada in respect of Kinder Morgan's 50% interest in the terminal.
The aboveground storage facility comprises 4.8 million barrels of crude oil storage capacity.
The ROFR was provided by Kinder Morgan in connection with the proposed acquisition of Kinder Morgan Canada by Pembina Pipeline.
Crude oil production in the US reached a new all-time high in October, highlighting the growing impact the country's production has on global markets.
According to the American Petroleum Institute's Monthly Statistical Report, domestic production in October hit 12.6 million barrel per day. The record production was met with solid US petroleum demand and exports along with lower oil prices in October.
Total US petroleum demand of 21.2 mb/d was the highest on record for the month for October, and US petroleum exports remained steady, above 8 mb/d despite global challenges.
API chief economist Dean Foreman says: 'Across the board, the October results were a great reflection of how market forces have benefited consumers.
'Decreased oil prices in October – despite record demand for the month and solid exports – underscored the influence of US oil production on global markets and helped insulate consumers from external shocks. This also demonstrates the tremendous value of infrastructure, as the breakout oil production was largely enabled by increased pipeline egress from the Permian Basin, improving deliverability to key Gulf Coast refining and export markets.'
The European Investment Bank has announced it will stop funding fossil fuel energy projects from the end of 2021 as part of its new climate strategy and lending policy.
Any future funding will 'accelerate clean energy innovation, energy efficiency and renewables' the bank says.
EIB president Werner Hoyer says: 'Scientists estimate that we are currently heading for 3-4°C of temperature increase by the end of the century. If that happens, large portions of our planet will become uninhabitable, with disastrous consequences for people around the world. The EU bank has been Europe's climate bank for many years. Today it has decided to make a quantum leap in its ambition. We will stop financing fossil fuels and we will launch the most ambitious climate investment strategy of any public financial institution anywhere.'
Five lending principles have been established that will govern future EIB engagement in the energy sector, including prioritising energy efficiency, enabling energy decarbonisation through increased support for low or zero carbon technology, increasing financing for decentralised energy production, innovative energy storage and e-mobility and increasing the impact of investment to support energy transformation outside of the EU.
Wood Mackenzie research director Nicholas Browns says that this new financing criteria will make lending to gas projects very difficult.
'When burnt, gas releases less carbon dioxide, nitrogen and sulphur oxides than coal and oil. Furthermore, coal-to-gas replacement has had a profound impact on air quality in northern China to the huge benefit of public health. It also has significantly lower full life-cycle carbon emissions than coal. However, while the comparative combustion benefits are undoubted, the sector may not be able to rely exclusively on this argument to make the case for gas and LNG. The benchmark looks like it will be set higher. Gas and LNG may be better but are they good enough?
'Beyond financing, it is possible that the debate could start to impact procurement decisions from carbon-intensive projects and portfolios, likely accelerating carbon capture, carbon offsetting and electrification of liquefaction. This year already saw the first carbon neutral LNG cargoes delivered while several companies are implementing or investigating using renewable power to drive the liquefaction process.'