The rise of petroleum storage in Asia
In the last few years Asian oil markets have experienced significant changes (both from global and local factors).Firstly, we are seeing additional demand drivers as follows:• Increasing production and use of biofuels• New lower sulphur grades of petroleum products• Closure of Australian oil refineries and their increasing reliance on imports• Concerns around security of supply, especially from Middle East supply.These security of supply concerns have manifest themselves as:• A large increase of oil storage in Fujairah• Middle Eastern national oil companies looking at storage opportunities in or near the storage and trading hubs in the Far East• A dramatic increase in strategic storage.
Future proofing tank storage operations
The US is in the midst of an energy renaissance. Advances in hydraulic fracturing technology have enabled the US to add more than 4.5 million barrels per day of production, bringing total production up to more than nine million barrels per day.This, coupled with global production, has created an abundance of supply and resulted in an increased need for storage. In response, companies are looking to increase their storage efficiency, and one way to do this is to raise the maximum oil levels in tanks. To appropriately manage the risks with these operations, API standards and best industry practices have been developed to assist tank owners and operators.
Oiltanking returns to Indonesia
Strategically positioned in the Singapore Straits and perfectly placed to participate in Platt’s trading environment,Oiltanking Karimun is the manifestation of the company’s continued investment in the region to maintain its competitive advantage.Sitting just outside Singapore, where land scarcity is significantly constraining new terminal developments, the new terminal serves the growing demand for petroleum products in Asia with 730,000 m3 of capacity.The facility, a joint venture between Oiltanking and Gunvor Group, recently recieved 60,000 metric tonnes of petroleum and petroleum components.
Storage equilibrium in Singapore
As land scarcity on Jurong Island constrains oil storage expansion, Stolthaven Singapore’s chemical facility is enjoying a happy equilibrium in the logistics supply chain.Stolthaven Singapore is nestled within a supply chain equilibrium on Jurong Island where both storage and logisticalassets work at optimal utilisation rates.Following the completion of the storage operator’s phase 2D project in July 2015, the company provides a crucial storage element that forms an integral part of the chemical and petrochemical supply chain in Singapore.Despite land scarcity creating a ‘double edge sword’ situation, which has prompted neighbouring countries to develop their own independent storage facilities, these developments are focused on the oil markets rather than chemical storage.
Logistical expertise to satisfy Asia's demand
VTTI’s ATT Tanjung Bin has positioned itself to absorb the growing demand for fuel oil in Asia following an expansion of its facility in 2015.ATT Tanjung Bin capitalises on offering logistical assets for Asia’s biggest energy product, fuel oil, as well as being part of the world’s biggest market for excess fuel.Situated in the heart of the FOB Straits, Asia’s most dynamic trading hub, the facility has expanded its operationsfurther with an extra 260,000 m3 of capacity for fuel oil as well as constructing an additional berth. In addition to handling greater volumes of vessels as a direct consequence of its expansion, the facility is also reaping the benefits of being part of Platts’ changed FOB Straits oil price assessment last year.
Tank storage - worth the investment risk
The global bulk liquids storage and infrastructure industry sits in the middle of a very active merger and acquisition market and there is no sign of this slowing, given underlying business drivers and the intentions of key transaction players.Energy is vital to the economy but an investor is largely driven by upstream ‘mining’ activities in oil and coal. However, these come with significant exploration and commodity price risks – risks that financial investors are not willing to take.Energy transportation infrastructure is one of the most attractive areas for investors, who are looking to capitalise on the resilience of this sector without taking any risk on the underlying energy commodities, namely coal, oil and gas.Liquid storage terminals play on the movement of the largest energy commodity – oil – as well as other bulk liquid cargoes including chemicals and bio fuels. The scale of opportunity, oil price movements and the converging interests of the players involved have resulted in multiple M&A transactions and many more will follow.To understand where the transactions are coming from and what will continue to drive them, it is important to understand each interested party’s dynamics.
Asia: The global energy driver
The emergence of China’s teapot refineries as well as growth of the one belt, one road mega project and India’s insatiable energy demand are helping to future proof Asia in the global storage market. Amy McLellan reportsHopes that 2016 was the start of the turnaround for oil prices, now in the second year of slump, were dashed this summer as yet another rally ran out of steam, this time stalling short of $50 a barrel. Oil prices slid to a three-month low in July as concerns mounted about the global supply overhang, with WTI sliding to $43.11 a barrel.Production data suggests US output is on the rebound while the return of disrupted supplies from Canada, Iraq and Libya is again adding to the global glut of oil.The result is that the one-year price contango, which has seen global tanks sloshing full to the brim, has almost doubled, suggesting the recent weakening of the oil price could be more than a summer dip. There is precedent: last summer the contango widened by 40%, stalling the recovery over the first half of 2015 and sending futures into a tailspin, with the price slumping to a 12-year low by the start of this year.
Spearheading storage efficiency
A series of investments to further improve productivity and efficiency across all of Tepsa’s facilities will position the company as one of the main storage players in Spain.The company has already ploughed €4 million into modernising its facilities by improving efficiency, productivity and service quality – this includes an automation project for the chemical tanker loading bays in Barcelona.A further €20 million has been earmarked for Tepsa’s four terminals in the ports of Barcelona, Bilbao, Valencia and Tarragona to further roll out automation at these facilities as well as implement new technologies to improve efficiency and productivity.In an interview with Tank Storage Magazine, managing director Luis Sala says that as a result of these ‘small’ investments so far, the company has ‘the fastest and most efficient operations of all the Spanish terminals’.
Port potential drives storage opportunities
The Port of Tarragona is developing itself as central chemicals hub in the Mediterranean with further expansion projects on the horizonThe Port of Tarragona benefits from several strategically unique factors which it is seeking to capitalise on further to elevate itself as a chemical logistics hub.Nestled along the east coast of Spain and perfectly placed to capture trade flows from the Mediterranean, the port has embarked on a series of projects to consolidate its hub position.In 2013 it invested more than €76 million to expand its chemicals wharf from 18 hectares to 36 hectares in response to growing demand from local industries and in 2015 Vopak Terquimsa invested in six new tanks as a result of market needs.
Leveraging supply chain opportunities
The expansion of Arabian Chemical Terminals (ACT) to satisfy the growing demand for specialty chemical storagewill help to create a seamless supply chain operation in Saudi Arabia.The expansion at its facility in Jubail Commerical Port involves the construction of two additional tankpits to house 13 stainless carbon and stainless steel tanks. Work is underway to connect the tanks to piping as well as further electric and instrument installation ahead of its expected commissioning in the first quarter of 2017.
Changing chemical storage dynamics
There are a number of trends impacting the outlook of the global chemical storage market. These include a shift towards the Asia-Pacific market and rapid growth in the Middle East and Africa; rise in export activity in NorthAmerica; stress on the market due to the surge in low-cost fuel influencing limited storage availability; conversion of old refineries into more profitable, automated, and digital facilities including those enabling a mix of material; technology advancements in new applications, coatings, and performance materials; increased securitymeasures, and movement towards more value-added services/solutions.
Chemical storage opportunities in Europe
The chemical and petrochemical industry in Europe is undergoing a welcomed resurgence, with growth of 3% per year predicted for the next five years.Coupled with increasing import flows to the region as a result of imbalances between chemical production and demand – opportunities are ripe for tank storage in Europe.On the back of these favourable market conditions, LBC Tank Terminals’ facility in the Port of Rotterdam is undergoing an expansion with the construction and lease of a new jetty as well as two new tankpits with 36,000 m3 stainless steel heatable capacity. Overall, the operator plans to have an additional 179,000 m3 of capacity, a new jetty with two seagoing berths and two barge positions, up to 14.5 meters safety draft, central truck loading facilities and increased capacity for rail cars.In an interview with Tank Storage Magazine, Dominique Waeytens,
Effective protection for secondary containment areas in chemical storage
Protecting the inside of chemical storage tanks from corrosion and leakage is of paramount concern to bulk liquid storage facilities, tank farms and chemical processing operators.Just as vital is the protection of the areas in and around and underneath tanks, including concrete tank pads, flooring, secondary containment and waste water areas. These areas must be able to withstand spills and splashes, and tank leaks from aggressive chemical exposures, including strong acids, alkalis, gases, solvents and oxidisers, to prevent migration into the concrete surfaces.
Robotics and induction herald greener tank refurbishment
RPR Technologies combines a patented induction technology and robotics to reduce cost, down time and the environmental impact of tank refurbishment.RPR Technologies combines a patented induction technology and robotics to reduce cost, down time and the environmental impact of tank refurbishment. Every year there are millions of square meters of coated steel surface in storage tanks across the globe that require refurbishing. Estimates suggest that Europe along accounts for 12-15 million m2. Stripping of protective coating is traditionally carried out using manual or robotic abrasive blasting or UHP water. These technologies require large quantities of energy and processing grit or water. Refurbishment expenses, extended down time and waste handling represent a considerable cost to storage tank owners and management. In addition to the economic impacts, the traditional stripping methods leave a heavy CO2 footprint, risk of local contamination and health hazards to operators and workers.
Navigating the spectrum of internal floating roofs
Internal floating roofs (IFRs) have been used and proven for many decades in storage tanks all over the world. Over the years various types of IFRs have emerged in the market and whilst focusing on different aspects, all comply to API 650, Appendix H.There are various options for end users who opt for a low maintenance IFR made of aluminum alloy or stainless steel. There are various factors to consider when deciding which IFR to use.
Investing in safe access and loading arms best practice
Loadtec Engineered Systems’ first distributor training event in Italy provided a comprehensive overview of the nuances of the safe access and loading arms industry. Tank Storage Magazine was invited along to gain a greater understanding of the company’s operations. Continued and long-term investment in education and industry best practice in safe access and fall prevention systems sits at the heart of Loadtec Engineered Systems’ business model. The growth of the company in the provision of fall prevention systems and fluid transfer solutions has prompted a growth in its distributor network to span the Americas, Europe, the Middle East and Asia.To ensure consistent product knowledge delivery as well as to keep up to date with the latest market trends affecting the bulk liquid storage industry company executives organised a distributor training event at their collaborative partner Zipfluid’s factory in Bologna to give an overview of their product line as well as key industry themes.
Lowering storage tank emissions
Storage tank vapour emissions have experienced significant reductions over the past 30 years. Regulatory requirements have driven a host of tank upgrades now available to the industry. Upgrades include internal floating roofs, external floating roofs, guide pole sleeves, double seals, liquid mounted mechanical shoe seals, closed loop sample systems, inert gas blanket pads and vapour recovery systems.
All in one armour for secondary containment
A revolutionary new secondary containment bund lining solution is a world first in tank storageThere have broadly been two approaches to creating secondary containment bunds within tank storage facilities, ‘hard’ and ‘soft’. The ‘hard’ solution is the construction of a hard faced structure (typically concrete) which offers long term durability but is logistically complex and expensive to install. The ‘soft’ solution is the use of a geomembrane liner, which is relatively easy to install, but needs to be buried and therefore often requires importing expensive fill materials.CC Hydro is a new material from Concrete Canvas, which offers a different approach. It can be unrolled and jointed as easily as a conventional geomembrane liner, but it has an integrated protective concrete layer on one side, thus eliminating the need for burial.
LNG: The energy of tomorrow
One of the most pressing challenges today are issues relating to energy. A growing world population with rising living standards requires more and more advances in energy supply and efficiency.According to the International Energy Agency, the demand for energy across the world is projected to grow by 1.4% a year to 2035. A cornerstone of the energy supply, natural gas is the fastest growing fossil fuel at 1.8% per annum and is recognised as being part of a sustainable energy future.With a significant portion of the world’s natural gas resources located far from any market and considered ‘stranded’, couple with the fact that transporting gas by pipeline can be costly and impractical, it is more economical to transform the natural gas into LNG for transport by ship, road and rail.Created by cooling natural gas to -163?C, LNG is a clear, colourless and non-toxic liquid, 600 times smaller than natural gas. It can be transported safely and delivered efficiently in its liquefied form, by specially designed LNG tankers, or from country to country or across continents, through a network of pipelines.
Instilling industry-wide NDT best practice
Inspection of facilities and assets is a key part of operating an efficient and safe working environment in the storage industry. We are all aware of the impact of failures resulting in possible personnel injury, environmental contamination, and loss of revenues.A range of standards has been developed which the industry has to meet covering inspection regimes and fitness for service assessment.Operators rely on inspectors and asset engineers to make these assessments, report on condition and specify preventative actions, so it is imperative that these people are suitably trained and qualified to carry out their duties.
Why jack a tank?
Tank jacking is perceived by some as an additional cost to tank repair works, however it is a crucial part of ensuring long-term usage of storage tanks.The earliest tanks Verwater jacked were located in the Rotterdam harbour area. The soft soil conditions in the river delta resulted in settlements due to the load of filled storage tanks.Jacking projects in the years that followed are spread to areas with similar soil conditions throughout Europe and later to locations worldwide.Nowadays, tank settlements are not the prime reason for tank jacking and in fact, a combination of repair works and tank improvements now form the basis for many requests for tank jacking.
The importance of checking for corrosion under insulation
For storage terminals, the quality and safety of the tankage is essential in the daily operations of the site.To ensure all tanks are maintained to the highest standard, most companies undertake regular NDT testing and Viking Inspection provides this service in the UK.Viking recently performed a full NDT tank inspection to EEMUA 159 tank integrity standards at a facility.On an inspection of an adjacent tank, some CUI (corrosion under insulation) was identified and attributed to penetration in the lagging. The decision was therefore made to scaffold the tank and remove the lagging for full inspection.In recent years it has become popular with some terminal operators to leave the bottom section of the shell un-insulated.