Latest storage news
MOL Chemical Tankers, Korea National Oil Corporation and SK Gas are working together to develop a chemical terminal in the Port of Ulsan in South Korea.
MOL, along with SK Gas, will invest in Korea Energy Terminal Company, a joint venture company for developing tank terminals. One such project comprises a large-scale tank terminal for petroleum product, natural gas and petrochemical, with a total investment of KRW 616 billion. Commercial operations are scheduled to start in June 2024 with 2.73 million barrels of tank capacity.
Last year, MOL announced its participation in a chemical tank storage terminal IN THE Port of Antwerp as part of its strategy to be a multi-model chemical logistics company.
South Korea is expected to increase its trading volume of liquid chemicals further, and Ulsan is already the industry's major center in the country, handling a wide variety of chemicals.
Starting with the Port of Antwerp and followed by the Port of Ulsan, MOL Chemical Tankers are on track to significantly develop their tank terminal business, improving their service range and flexibility to better meet customer demand.
Ironwood Midstream Energy Partners has created Ironwood Midstream Energy Partners II, a midstream infrastructure company for oil and gas producers in North America.
The company is supported by an initial capital commitment of $400 million from EnCap Flatrock Midstream. It is pursuing greenfield projects and acquisition opportunities, with a focus on opportunities in Texas.
Ironwood II also announced it has entered into a binding agreement to purchase midstream assets in South Texas currently owned and operated by Twin Eagle Gardendale Pipeline. The company will acquire Twin Eagle's Gardendale and Asherton gathering systems, which together currently include 137 miles of active crude oil gathering pipeline with connections to multiple long-haul pipelines, allowing access to the US Gulf Coast, Three Rivers and Houston markets. Interconnects include Plains All American Pipeline, Harvest Pipeline Company, NuStar Logistics and the upcoming EPIC Crude Oil Pipeline. The Gardendale and Asherton systems span Dimmit and La Salle counties and are supported by long-term dedications totaling more than 124,000 acres.
The transaction is expected to close in December 2019.
Bill Waldrip, a member of the Ironwood II board of directors, says: 'We are excited to bring the Ironwood team into the EnCap Flatrock Midstream family. Mike Williams, Justin Johnson, Josh Doramus and Danny Rea have outstanding reputations and track records. We look forward to bringing more than capital by bringing our expertise and contacts to the table.'
With less than four months to go until the fourth Global Tank Storage Awards, here are five reason why you should make time to enter for an award:
1. Free marketing - Winning an award is a great PR opportunity & a fantastic way of letting the market know what your company has achieved. Not only are winners of the Global Tank Storage Awards presented with a bespoke winner's trophy, they are also given a winner's pack including logos, social media banners & email signatures highlighting your achievement. The winners will also be displayed on screen during the StocExpo exhibition.
2. Increased credibility – Representatives from BP, Shell Trading, Ineos, Kinder Morgan, VTTI, Oiltanking, LBC, Vopak, Koole & InterTerminals are judging the Global Tank Storage Awards. They will review all nominations received, meaning that even if you don't win – your company's products will still be showcased to industry leaders.
3. Employee motivation – Awards recognise the hard work and achievements of your employees so winning one can help boost staff morale and improve motivation. Thank your staff for all their hard work by treating them to a night out at the Global Tank Storage Awards ceremony on March 10. Held after the first day of StocExpo in Rotterdam, tickets include a 3-course meal, all-inclusive drinks all evening, circus acts, casino & more.
4. High level networking – Over 200 senior terminal professionals attend the gala dinner – make the most of this exclusive networking opportunity.
5. It's quick & easy – New for 2020, you can either write your nomination or upload a video instead. The improved website allows you to save your nomination and finish it later & keep track of which categories you've entered - you are welcome to enter as many categories as you like.
For full details on the 2020 Global Tank Storage Awards and to submit a nomination visit www.tankstoragemag.com/awards.
Magellan Midstream Partners has launched a supplemental open season to solicit additional commitments for transportation volume on the western leg of its refined petroleum products pipeline system in Texas.
Magellan is in the process of expanding the capacity of its west Texas refined products pipeline system to 175,000 barrels per day from its current capacity of 100,000 barrels per day. The company is also building a new refined products terminal in Midland, Texas.
It is expected that both the west Texas refined products pipeline expansion and the new Midland terminal will be operational in mid-2020.
The pipeline system primarily transports gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa and El Paso, Texas as well as New Mexico. The pipeline system can also access markets in Arizona and Mexico via connections to third-party pipelines.
Binding commitments on the open season are due by December 20. Subject to the results of the supplemental open season, Magellan is considering the addition of another 25,000 bpd of capacity on the pipeline, for a total capacity of up to 200,000 bpd, which could be operational yb the end of 2021.
Kinder Morgan Tejas Pipeline has acquired natural gas pipeline assets owned by Southcross Energy.
The purchase price was $76 million and includes the Corpus Christi Pipeline Network and Bay City Lateral.
Kinder Morgan Natural Gas Midstream president Sital Mody says: 'We continue to focus on opportunities to increase our natural gas connectivity to meet LNG facilities, Gulf Coast power, industrial and petrochemical demand. These assets are a nice complement to our existing Texas portfolio of assets and allow for further connectivity on our Texas Intrastate system.'
Calumet Specialty Products Partners has finalised the sale of its San Antonio, Texas refinery including a crude oil terminal and pipeline to Starlight Relativity Acquisition Company for $63 million.
Tim Go, CEO of Calumet, says: 'The divestment of the San Antonio refinery represents another step forward in Calumet's strategic transformation. This transaction further de-levers Calumet's balance sheet, reduces earning volatility by lowering our exposure to fuels refining, and allows the partnership to focus its time and capital more intently on our higher-return core specialty products business.
'I want to thank our employees at San Antonio for their continued hard work and dedication, particularly this past year where they have delivered significant improvement to both our operational and financial performance. These step-change improvements made this transaction a win for our employees, Calumet, Starlight and the community, and we are pleased to see that the San Antonio refinery and its employees have found a new home for the long-term.'
Arabian Refinery Company and Qatar Petroleum have successfully launched the Egyptian Refining Company refinery project in Mostorod, north of Cairo.
All of the refinery units are now successfully operating and are expected to ramp up to full production before the end of the first quarter of 2020. This will reduce Egypt's dependence on imported petroleum products.
The successful start up of the refinery, of which Qatar Petroleum owns 38.1% and the Arabian Refinery Company owns 66.6%, will further strengthen Qatar Petroleum's international downstream footprint through this project, which is its largest investment in an Arab country as well as in Africa. The refinery will support Egypt's plans to increase the resilience of its domestic hydrocarbon supply chain and reduce dependence on imports.
The facility aims to process around 4.7 million tonnes per annum of atmospheric residue feed from the adjacent Cairo Oil Refinery Company. It will mainly produce Euro V refined products intended for consumption primarily in Cairo and surrounding areas.
A $1.6 billion plan to refurbish a long-idled Caribbean oil refinery is about 75% complete and could begin delivering fuel supplies early next year, according to Reuters.
The Limetree Bay Refining project is a bet on demand for low-sulphur fuels to meet a January 1 global mandate for ocean-going vessels cut air pollution. The St. Croix, U.S. Virgin Islands, venture is run by private equity and commodity trading firms with oil major BP providing crude oil and marketing the plant’s output.
Once restarted, the plant will be able to process up to 210,000 barrels per day of oil, a fraction of the 1,500-acre (607-hectare) plant’s peak capacity in the 1970s of 650,000 bpd.
Arclight Capital Partners, a Boston-based private equity firm, acquired the refinery with Freepoint Commodities in 2015. The two operate the plant’s about 34-million-barrel oil storage terminal while resurrecting part of what once was one of the world’s largest refineries.
BP has taken a larger role as delays arose due to the aged equipment’s near eight-year closure. Limetree Bay had hoped to complete the restart this year with two crude processing units in operation.
Instead, it will start operations early next year with one crude processing unit and may later revive a second crude unit if profits allow, Brian Lever, Limetree Bay’s CEO told a St. Croix senate panel on Wednesday.
BP had no immediate comment on the change.
Lever declined comment on the delays or when product deliveries could begin through an Arclight spokesman. The company continues ‘to make strong progress on the refinery restart,’ adding it now expects to put oil into processing units early next year.
Arclight and its partner aim to profit from expected high demand for low-sulfur marine fuels from the IMO 2020 mandate. It also could benefit from the summer closing of Philadelphia Energy Solutions’ 335,000-bpd refinery that supplied the U.S. East Coast.
Kirk Callwood, executive director of St. Croix’s public finance authority, told the senate panel that repairs will continue into December, followed by a commissioning period and then startup.
The St. Croix plant shut in 2012 facing requirements to spend some $700 million on pollution controls and a $5.4 million civil penalty to settle violations of the U.S. Clean Air Act that were levied on then-Hovensa, a venture between Hess Corp and Venezuela’s state-run oil firm PDVSA.
Negotiations on an agreement with the U.S. Department of Justice and Environmental Protection Agency to settle prior violations of the Clean Air Act are nearly complete, Lever said in prepared remarks. The company must reach agreement on the 2011 consent decree before the refinery can restart operations.
Moda Midstream has started deliveries of storage tanks to customers from its 10-million-barrel expansion at the Moda Ingleside Energy Centre in Ingleside, Texas.
The company has so far delivered 2.4 million barrels of new storage capacity ahead of schedule and has a combined total storage of 4.4 million barrels at the energy centre and Moda Taft Terminal. Moda expects to deliver half of the 10-million-barrels of expansion tankage to customers and will have a total capacity of 7 million barrels by the end of 2019.
Bo McCall, Moda president and CEO, says: 'We have received strong demand for additional storage and throughput commitments to support our next expansion phase that will be similar in size to what we are executing today and will be easily accommodated at MIEC's 925-acre footprint and expansive waterfront.'
The company has also started new marine enhancements. MIEC will be one of the first destinations to benefit from the Port of Corpus Christi Channel Improvement Project to increase the depth of the channel. Moda has started structural enhancements and dredging to berth 5. These enhancements will allow for the docking of Suezmax class vessels. They have also begun improvements to berth 4, which will allow for the docking of VLCCs.
McCall adds: 'We are thrilled to be adding a second VLCC berth at MIEC to give our customers unparalleled optionality. MIEC already has the highest marine loading rates and fastest turnaround times of any Gulf Coast crude oil terminal. We are continuing to invest in our waterfront to enhance our capabilities and ensure efficient, safe and reliable loading.'
Additionally, Moda recently placed tankage in service at the Moda Taft Terminal, located at the centre of an emerging pipeline and storage hub near Taft, Texas. It is connected to the EPIC crude oil pipeline and Moda's 20-inch pipeline between the Inner Harbour and MIEC. The terminal will be connected to the Cactus II Pipeline, the Gray Oak pipeline and other crude oil systems.
The company is also evaluating the construction of an additional pipeline, the Moda Ingleside Express Pipeline. It would be bi-directional and run between MIEC and Taft. The new pipeline would provide customers additional connectivity between the Moda Taft Terminal and MIEC's waterfront.
Read an exclusive interview with Moda Midstream's executive vice president, COO and founding partner Javier del Olmo in Tank Storage Magazine's 2019 North America Edition. For more information visit www.tankstoragemag.com/shop.
Inter Pipeline's bulk liquid storage segment reported strong financials in the third quarter due to its newly acquired storage business in the UK and Netherlands & additional storage contracts in Denmark.
The segment generated strong funds from operations of $30.5 million in the quarter, compared to $14.8 million in the third quarter of 2018.
Average storage utilisation rates during the third quarter improved to 92% compared to 74% for the same period in 2018.
The company says that the process to explore the potential sale of Inter Terminals is ongoing and that there are no material updates. It says that should a sale be completed, potential proceeds would be used to reduce debt and finance on its capital expenditure programme, including the Heartland Petrochemical Complex.
Overall Inter Pipeline generated funds from operations of $204.4 million in the third quarter compared to $299.7 million in the third quarter of 2018.
Christian Bayle, Inter Pipeline's president and CEO, says: 'Our oil sands transportation business continued to deliver strong, stable results, and we saw significantly improved results from our European storage operations.
'However, as expected, our quarterly cash flows were impacted by planned large-scale turnaround activities at three of our NGL processing facilities, as well as, depressed frac-spread pricing.'
Hes Botlek Tank Terminal has commissioned six biodiesel storage tanks with a total capacity of 20,000 m3.
The expansion, which is backed by multi-year customer contracts, increases storage capacity at the terminal to more than 510,000 m3.
The terminal, located in the Port of Rotterdam, more than doubled its capacity to 490,000 m3 for petroleum products and biofuels in 2017 and is expanding its berth capacity to accommodate this growth.
The Russian oil refining sector is expected to grow in both volume and depth over the next ten years according to experts.
A Vostock Capital report on construction and modernisation projects for oil and gas processing and petrochemical facilities highlights ongoing and promising investment projects in the country.
Processing facilities with a total capacity of 100 mt are due to be commissioned before 2024 and 127 oil refining units will be revamped by 2027.
The gas processing industry is expected to increase over the next 15years with 100 – 150 billion m3 of production capacities remaining.
Some of the projects to be developed before 2030 include:
• Expansion and modernisation of Ufaorgsintez. The company plans to build a polyolefin complex by 2028, which will include a pyrolysis complex, polypropylene and polyethylene production units. Additionally an equipment retrofit of pyrolysis will increase ethylene production by 300,000 by 2020.
• The Taneco development programme will continue until 2026. It comprises the commissioning of units with higher throughput and will help expand the company's product portfolio.
• The modernisation of the Novoshakhtinsk oil production plant. Between 2020 and 2030 177 billion RUB will be invested in the plant'd development. From 2020 the plant will product 717 kTPA of Euro-5 gasoline 92 and 95 and about two mt of commercial diesel.
These projects, along with others, will be discussed at Downstream Russia 2020's annual conference and onsite visits on February 26 – 28.
For a full list of investment projects in the country click here.
Common processes and standards are a core element of a seamless downstream supply chain in the oil and gas sector.
Key industry participants of the German petroleum industry, including refinery and tank terminal operators, gathered at the 15th IFLEXX meeting in Bochum.
Focusing on what the future holds for the sector, attendees focused on innovative process integration options that go beyond the established standards IFLEXX and PIDX, such as cloud services.
It was agreed that enhanced process integration is a key piece of digital transformation and that the IFLEXX community needed to open up and embrace cloud solutions with the goal of broadening the range of interests and provide a forum for participants to learn about and discuss the latest innovations. It was also agreed that external experts should be invited to provide additional insight on certain topics.
Implico's Thomas Fahland said: 'Such a forum would give industry representatives the chance to discuss their requirements for future services directly with the providers.
The latest edition of Tank Storage Magazine contains articles on hydrogen technology, the LNG potential as well as the energy transition.
The October/November edition has a special focus on sustainability in storage and how terminals are reacting and responding to the energy transition.
Our top five must-read articles are:
A storage frontrunner
Evos Amsterdam reveals how it intends to keep pace with the energy transition
Fuelling the future
An innovative technology is making hydrogen easier to store, transport & distribute
The sustainable energy solution
A closer look at the EU's Renewable Energy Directive, the future of sustainable fuels and the impact this could have on the European storage sector
A greener storage future
What initiatives are terminals introducing to future-proof their business?
Europe's LNG potential
An exclusive interview with Gate Terminals' managing director about the terminal's growth ambitions
To find out more about this edition and how to get a copy visit www.tankstoragemag.com/shop.
Harvest Midstream Company has started construction work on the Ingleside Pipeline and Harvest Midway Terminal.
The Ingleside Pipeline is a new 24-mile, 24-inch oil pipeline that will originate from the Harvest Midway Terminal and connect to multiple oil export terminals in the Ingleside area, including the Flint Hills Resources Ingleside Terminal as well as the South Texas Gateway Terminal being developed by Buckeye Partners.
The pipeline will also connect to multiple terminals in the Midway and Taft area. It will have a final capacity of 600,000 barrels per day, with up to 380,000 barrels per day supplied by the existing Harvest Eagle Ford Pipeline Systems.
Jason Rebrook, CEO of Harvest Midstream Company, says: 'Harvest has a strong history of expanding and improving our infrastructure to ensure access to safe and reliable transportation for our customers. This investment is an exciting opportunity for growth that will allow us to better serve our Eagle Ford customers in the Corpus Christi and Ingleside markets.'
The new terminal will have the capacity to store more than 10 million barrels. The initial buildout will include 200,000 barrels of crude oil storage as well as measurement and pumping infrastructure capable of 25,000 barrels per hour.
'The Harvest Midway Terminal is a great addition to our existing infrastructure in the Eagle Ford, providing additional storage, connectivity, and points of delivery for our customers,' says Sean Kolassa, president of Harvest Midstream Company.
'We look forward to providing the best service to our customers as we continue to expand our operations.'
The Ingleside Pipeline is expected to begin service at the end of the first quarter of 2020 and the Harvest Midway Terminal is projected to be in-service at the beginning of the fourth quarter of 2020.
Odfjell's terminal division has reported an EBITDA of $6 million in its third quarter financials in line with the previous quarter.
Odfjell Terminals US reported improved EBITDA mainly driven by lower allocated costs as a consequence of the closure of headquarters in Rotterdam. Utilisation at the Houston terminal remained at 100% for the quarter and throughput was stable compared to the previous quarter.
During its third quarter, the company sold its 55% ownership in Odfjell Terminals Jiangyin for $46 million. The transaction resulted in a capital gain of $14 million and net cash proceeds of $21 million for Odfjell SE.
As part of Lindsay Goldberg's exist from Asia, Odfjell SE has said it may consider tagging along on a sale of its ownership in the terminals in China. The process will be concluded in the coming quarters.
In connection with Lindsay Goldberg's exit, Odfjell has reorganised its terminal division to reflect the current portfolio and governance requirements. As a result, Odfjell has moved its terminal division to Bergen and close Odfjell Terminal's previous headquarters in Rotterdam as well as its office in Singapore.
Odfjell SE reported an EBITDA of $51 million compared with $57 million in the second quarter of 2019.
Kristian Mørch, CEO of Odfjell SE, says: 'The third quarter was impacted by the usual seasonal slowdown in volumes while rates remained stable. Since then, the market has normalised and we are encouraged to see improvement in volumes and improved crude and product tanker markets, which should positively impact our markets going forward. We are further encouraged by ongoing improvement in contract rates and that customers are accepting pass-through of potentially higher bunker costs related to IMO 2020. We expect to report improved results in the fourth quarter.'