Korea's National Oil Corporation is set to complete a strategic underground storage facility for crude oil in Ulsan by June 2021.
During a site visit Lee Yeon-kyu, senior manager of KNOC's Ulsan construction office, told reporters that the project is part of the company's plans to replace its aboveground oil storage tanks and build a safe and environmentally friendly underground facility.
Once complete, the cavern will raise the company's total oil storage capacity to 146 million barrels. Currently it has 136 million barrels to stockpile crude oil and refined oil products.
According to KNOC data, once complete, the company will have a total capacity of 16.8 million barrels of underground oil storage in Ulsan.
The facility will stockpile mainly Middle East crude grades such as Saudi Arabia's Arab Extra Light and Oman crude.
Enbridge will advance the development of a new wholly-owned Jones Creek Crude Oil Storage Terminal.
The facility will have ultimate capability of up to 15 million barrels of storage, access to crude oil from all major North American production basins and will be fully integrated with the Seaway Pipeline system to allow for access to Houston-area refineries, existing export facilities and other facilities in the future.
Seaway announced recently a plan to proceed with an open season to secure interest in a potential 200,000 barrels per day expansion of the system. Seaway is well-position as a highly competitive option to transport Cushing volumes to a fully integrated network of pipelines, storage facilities, and export terminals along the US Gulf Coast.
Enbridge president and CEO Al Monaco says: 'The combination of the proposed Seaway expansion, the development of our Jones Creek Storage Terminal and our expanded offshore VLCC, positions us nicely and advanced our strategy to enhance and extend North America's premiere crude oil value chain – one that stretches from western Canada, to the Midwest and through to the Midcontinent and US Gulf Coast. It also fits very well with our broader goal to further build out our export infrastructure position in both crude oil and natural gas.'
GPS has officially opened its expanded gasoline, gasoline components and biofuels storage and blending terminal in the Port of Amsterdam.
The company has expanded its class 1 certified storage capacity from 148,500 m3 to 282,500 m3 across 17 tanks as part of an international GPS programme of key asset developments and acquisitions. The expansion marks the latest development in this international strategy and follows major 'buy and build' investments at GPS' greenfield projects in the UAE and Malaysia.
The new tanks will create a larger and more bespoke terminal facility offering increased capability and a high degree of flexibility. The expansion also markets the latest achievement in GPS' strategic partnership with Varo Energy and the Port of Amsterdam. In addition to gasoline, gasoline components and biofuels, the terminal can also handle other commodities to allow the company to meet a growing consumer demand for greater flexibility.
As part of the expansion, GPS will also develop a rail handling facility to equip its site with a cost effective and sustainable alternative to road and river transport for a range of its energy and chemical commodities.
Eric Arnold, CEO at GPS, says: 'The opening of this facility is an important milestone for GPS. The investment in increased capacity and flexibility which are now built into the Amsterdam terminal reinforces GPS' commitment to providing customers with world-class assets, while pursuing our global expansion plans.
'We are excited by the possibilities of our expanded site and are committed to additional investments here in Amsterdam that will ensure both GPS and our customers are well positioned to capture future opportunities.'
OPEC & non-OPEC members have agreed to cut production by 500,000 barrels a day starting in January 2020 to help boost oil prices amid concerns of an economic slowdown.
The oil producing cartel agreed to cut output for the first quarter of 2020 but did not commit to any further action beyond March.
The combined cuts amount to 1.7 million bpd, or 1.7% of global production. Several participating countries, mainly Saudi Arabia, will continue their additional voluntary contributions. Russia will make an additional cut of 70,000 b/d beyond its current agreed cut of 300,000 b/d.
Ed Crooks, vice-chair, Americas at Wood Mackenzie says that the action shows how the OPEC+ group is taking a flexible approach to managing the market.
Ann-Louise Hittle, vice president macro oils, Wood Mackenzie, adds: 'The group is taking a highly proactive approach to managing the market and will not commit to restrain beyond March 2020, when both a joint ministerial meeting and an extraordinary meeting will be held in the first week of the month.
Enterprise Products Partners and Enbridge have executed a letter of intent to jointly develop a deepwater crude oil terminal in the Gulf of Mexico capable of loading VLCCs.
The companies have agreed to focus commercial development efforts on Enterprise's Se Port Oil Terminal deepwater crude oil terminal. Under the terms of the letter of intent, the companies agreed to negotiate an equity participation agreement whereby, subject to SPOT receiving a deepwater port license, an Enbridge affiliate could acquire an ownership interest in SPOT Terminal Services, which owns SPOT.
The project consists of 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 85,000 barrels per hour, or up to 2 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 minimize emissions. Construction of the terminal is subjects to 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 work with Enbridge to jointly develop a deepwater port in the Gulf of Mexico to support growing exports of US crude oil. We value Enbridge's expertise and resources as we focus our collective commercial development efforts on making the SPOT project a reality.'
Al Monaco, president and CEO of Enbridge, adds: 'This collaboration leverages our jointly owned and highly competitive Seaway system and capitalizes on each of our capabilities to drive out highly capital efficient export infrastructure for our customers. For Enbridge, it is also a key part of our priority to provide our North American light and heavy crude customers with highly efficient access to the Houston-area refining markets and growing global demand.'
USD Partners has executed long-term, multi-year renewals for the remaining capacity at its Hardisty Terminal with ConocoPhillips Canada.
As a result, the company has executed multi-year extensions for 100% of the capacity at the terminal. In association with its sponsor's recently announced joint venture with Gibson Energy to build a diluent recovery unit adjacent to the terminal, a material amount of capacity at the facility will be extended beyond 2030, pending the successful construction and completion of the DRU.
The DRU could be placed into service as early as the second quarter of 2021. The renewals contain take-or-pay terms with minimum monthly payments and rates that are consistent with those of the original terminaling services agreement with the customer.
ConocoPhillips Canada entered into renewals and extensions of the terminaling services agreements that cover 100% of the company's destination capacity at the Stroud terminal, commencing in January and June 2020.
Dan Borgen, USD's CEO, says: 'We are pleased to announce the first step in accomplishing our vision of successfully converting heavy crude oil out of Western Canada into DRUbit. This transaction creates long-term cash flow at the partnership. We are committed to working with our customers and our transportation partners to create sustainable solutions for shipping Canadian crude oil to the US, including our expanding network of Gulf Coast destination terminals.
Energy Transfer has completed the acquisition of Tulsa-based SemGroup for $5.1 billion.
The combined operations of the two companies are expected to generate annual run-rate efficiencies of more than $170 million, consisting of commercial and operational synergies of $80 million, financial savings of $50 million and cost savings of $40 million.
Energy Transfer's acquisition of SemGroup's Houston Fuel Oil Terminal (HFOTCO) strengthens its crude oil transportation, terminalling and export capabilities, and provides the company with a strategic position on the Houston Ship Channel. HFOTCO has more than 18 million barrels of crude oil storage capacity, five deep-water ship docks and seven barge docks.
Energy Transfer is building the Ted Collins pipeline, a 75-mile crude line that will connect the terminal to the company's Nederland terminal. The pipeline is expected to be in service in 2021, and will have an initial capacity of 500 million barrels per day.
The company says that this acquisition expands its pipeline footprint by adding crude oil and NGL gathering systems and transmission lines in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas with connections to crude oil terminals in Cushing, Oklahoma. The acquisition will also provide a significant natural gas gathering and processing presence in the Alberta Basin in western Canada.
Africa Finance Corporation and Brahms Oil Refineries have signed a joint development agreement for a new petroleum storage and refinery project in Kamsar, Guinea.
This joint development will include a 76,000 m3 crude oil storage terminal, a 114,200 m3 terminal for refined products, ancillary support transportation infrastructure and a 12,000 barrel per day modular refining facility.
AFC will invest in the project development workstreams to help ensure that the project reaches financial close in 2020.
The project will be instrumental for Guinea to achieve its economic and developmental goals, which are severely hampered by Guinea not having any refining capacity. Once operational, the refinery will have the capacity equivalent of one-third of its demand for refined products, reducing Guinea's reliance on imported refined products, improving the country's balance of payments, and reducing foreign currency demand.
The facility is located in Kamsar, which is one of the larger mining regions in the country. In addition, AFC is considering several projects in the country to create an integrated ecosystem. This would include a 33MW solar project port, and other mining projects.
Amadou Wadda, senior director project development and technical solutions team at AFC, says: The Brahms refinery project will have a tremendous impact in the country's development.
Brahms Oil Refineries CEO Daouda Fall adds: 'To partner with AFC is a great milestone and brings us one step closer to our goal of reaching financial close in early 2020 and kickstarting construction.
The conference programme for StocExpo, which returns to the Rotterdam Ahoy from March 10 – 12 2020, has been unveiled.
The two-day conference will feature a powerful mix of talks focused on critical global issues such as sustainability, the impact of energy alternatives, emerging markets, latest technologies and trends, all delivered by 20 world-class speakers.
Artur Runge-Metzger, director, DG CLIMA, European Commission will open the conference with an assessment of the future of sustainable transport and the EU's energy policy. He will be followed by speakers covering the future implications of changes to the energy mix including LNG, a non-hydrocarbon future and the growth in hydrogen.
In considering the growth of LNG, Wim Groenendijk, managing director, Gate Terminal will outline the development of a Northwest European multi-modal LNG Hub and the opportunities it presents in the context of decarbonisation and energy transition. Charles Daly, chairman, Channoil Consulting will then explore how oil terminals need to change if they're to stay in business in a non-hydrocarbon scenario.
The world's key terminals, storage players, energy companies, investors and analysts are all monitoring closely the development of hydrogen, keen to gauge its future demand and the impact this will have on their businesses. To answer this, Daniel Teichmann, chairman, Hydrogenious will consider the latest political and industrial developments which are establishing hydrogen as an emission-free fuel. He will show how, thanks to Liquid Organic Hydrogen Carrier (LOHC) technology, hydrogen can be transported using existing liquid fuel infrastructure and will share with delegates the build-up of the company's first industrial-scale project.
Clearly sustainability has ramifications for how terminals are operated. Considering this, Rian Vermeulen, senior advisor BRO, and Dennis Risseeuw, business consultant Engie will outline a unique approach to terminal sustainability – including measures to become more energy efficient, produce more renewable energy and protect local ecology.
Building on this, Khalid Saleh, energy coordinator, Vopak will share the company's sustainable energy initiatives including CO2 emission reductions.
In a talk focused on the long-term impact of energy transition Giacomo Boati, director, Oil Markets, Midstream & Downstream Consulting, IHS Markit will review the expected trends in decarbonisation of the transportation sector and the impact of this.
A future thinking panel will then pull all of this together to debate what the storage terminal will look like in 50 years' time, before the first day of the conference ends with a regulatory update provided by Ravi Bhatiani, executive director, FETSA.
The second day of the StocExpo conference starts with sessions on the implications of emerging markets and the US trade wars and tariffs. Andrew Inglis, vice president of Energy and Fuels in EMEA, Nexant will consider the shift in global demand from mature markets to emerging markets. While Samuel Ciszuk, founding partner, ELS Analysis will examine how US trade wars / tariffs are impacting international tradeflows.
The conference then changes focus, with a series of expert talks on the very latest developments, technologies and thinking designed to improve day-to-day terminal operations. These include improving cyber security, with Martin van den Bosch, digital forensic investigator, Netherlands Seaport Police who will outline how to protect against storage spoofing.
Maayke Maas-Cooymans, partner, Ploum is discussing terminal legislation compliance & the legal implications of PGS29. Luc Bonami, managing director, Anno Chemicals will provide an invaluable customer perspective, outlining what terminals could and should be doing better. Leo Brand, CIO, Royal Vopak and Nadine Herrwerth, commercial director, TWTG will then consider the Internet of Things (IoT), explaining how I-IoT equals smarter sites.
Tank overfills, unintended roof off-floats, and transmix in pipelines are all practical issues for storage companies. Earl Crochet, director of engineering, Kinder Morgan will outline the role latest ultrasonic technology devices can play in preventing them.
Digital transformation programmes are also on many agendas. In response, Joe Nassif, director, Terminal Industry Programmes, Emerson will outline the very real safety, capacity yield, maintenance and energy gains which programmes have delivered.
A panel discussion brings the conference to a close with a look at the hype and reality of technologies such as drones, robotics, digitialisation, the IoT and artificial intelligence before asking what's the next big thing and how can it be used to improve safety, efficiency and security.
Mark Rimmer, StocExpo divisional director, says: 'The bulk liquid storage industry has so many developments to consider - environmental demands, new technologies, emerging energy sources and markets together with a shifting political and regulatory landscape. We've carefully curated a programme to address all of these, delivered by a line-up of world-class speakers. This programme will both help companies prepare and plan for the future and optimise their present-day operations.'
Attendees of the StocExpo 2020 conference will also have plenty of networking opportunities plus an exhibition where over 200 suppliers from across the globe will be showing their latest innovations under one roof.
StocExpo takes place from March 10-12 2020 at the Rotterdam Ahoy. For more information on the conference programme, visiting the exhibition, or exhibiting visit www.stocexpo.com.
Construction of Cyprus' first LNG terminal is a step closer after the government reached an agreement with the Chinese consortium that will carry out the project.
The agreement follows negotiations between the Natural Gas Infrastructure Company, the Natural Gas Public Company and the joint venture between China Petroleum Pipeline Engineering Company and Metron. Hudong-Zhonghua Shipbuilding and Wilhelmsen Ship Management will also be involved in the joint venture.
The project at Vassiliko is due to start operations in 2021 and it will supply the market with LNG for electricity.
The LNG tanker carrier Galea will be used as the FSRU, with the cost for the installation and deployment of the floating unit estimated at €260 million.
AquaChemie Middle East has announced plans to build a $40 million chemical storage terminal facility at Jebel Ali Port in Dubai.
The terminal will serve as the company's gateway hub across the Gulf and beyond the region. AquaChemie is a chemical producer and distributor of commodity and semi specialty chemicals.
Mott MacDonald has been selected for the design, engineering and project management of the terminal, which is due to be commissioned by mid-2021.
The terminal will comprise 30,000 m3 of capacity for liquid hydrocarbons along with day tanks, chemical processing units and automated drumming lines as well as associated infrastructure including a covered warehouse and a separate dry good storage area.
In a statement, the company says: 'The new chemical terminal will leverage its prime site location at Jebel Ali Port operated by DP World, including multiple jetty pipelines, along with other crucial existing utility and building support infrastructure.'
V. Anandkumar, co-founder and director of AquaChemie Middle East, says: 'The project will serve as a catalyst to boost petrochemical trade between manufacturers in the region and end-users anywhere in the globe. In addition to serving as a sales channel, the project will also allow regional petrochemical majors to market their various product lines in drums or intermediate bulk containers for distribution to the tertiary chemical industry.'
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.