Storage Terminals Magazine - Winter 2018

STORAGE TERMINALS MAGAZINE

AN ABRASIVE THAT GETS THE JOB DONE.

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STORAGE WINTER 2018

DIORCA INDUSTRIAL CA Your integral solution for tank maintenance and construction

TERMINALS MAGAZINE

HUB OF THE MATTER

TruAbrasivesTM are the perfect abrasive for your projects, allowing for quality, performance and health benefits.

Analysing the world’s major hubs – Cushing, Singapore, Antwerp • • • • • • • •

100% recycled glass Non-reactive & inert, suitable for use around water Less than 1% free silica Does not require Beryllium exposure controls, as with slags* White post-blast finish Translucent dust for increased visibility QPL, SSPC AB-1, MIL-A-22262B(SH), CARB approved (select plants) Coast-to-coast availability

FOCUS ON LATIN AMERICAN STORAGE China as a US crude export market

*As defined by OSHA Beryllium Rule for permissible exposure limits

WINTER 2018 EDITION

1-866-775-6226 Abrasives@StrategicMaterials.com

Our regional sales managers are NACE Inspector Certified.

Contact us today to work with our highly trained team. © 2018 All Rights Reserved. TRUABRASIVES is a trademark of Strategic Materials, Inc.

Drones take off in Europe

www.TruAbrasives.com D E D I CAT E D 1 0 0 % TO T H E G LO B A L TA N K S TO R AG E I N D U S T RY

Delivering engineering, procurements, quality assurance and maintenance to its clients across the oil, gas and petrochemical industries, Diorca Industrial has more thank 25 years of experience ranging from initial feasibility studies to commissioning and start up.

Equipment supplied includes: 3 EPC Construction projects 3 Aluminum Geodesic Dome, and covers 3 Aluminum Internal Floating Roofs 3 SS seals for Internal and External Floating Roofs 3 Steel plates, pipelines and accessories 3 Drainage systems 3 Fire-fighting systems 3 Instrumentation and measuring systems 3 Hoses, Valves, Vents, Flame arresters, Detonation arresters, and Measuring hatches 3 Aluminum silicate abrasives for blast-cleaning.

DIORCA INDUSTRIAL, CA Frater Radulphusweg, #1-A, Habaai Willemstad, Curacao, Dutch Caribbean email tanks@diorca.com

Services provided include: 3 Inspection and Technical Advising on optimization of Storage Tanks 3 Installation of Aluminum Geodesic Domes for storage tanks, and residual water purification systems 3 Installation of aluminum membrane on tanks with fixed roofs 3 Installation of primary and secondary seals for storage tanks with External Floating Roofs 3 EPC Construction of oil Atmospheric Storage Tanks or Pressurized Storage Tanks 3 Cleanup and recovery of oil products in tanks 3 EPC Construction, Installation, and Maintenance of metallic structures 3 Manufacturing, Installation, Repair, and Maintenance of Fire Fighting Systems 3 Piping Installation, construction and assembly 3 Installation of drainage systems 3 Clean-Blasting services 3 Industrial Painting 3 Tank Bottom grit blasting and painting 3 Cathodic protection in tanks and pipelines.

ISO 9001: 2015 Certified

STORAGE TERMINALS MAGAZINE

AN ABRASIVE THAT GETS THE JOB DONE.

STORAGETERMINALSMAG.COM

STORAGE WINTER 2018

DIORCA INDUSTRIAL CA Your integral solution for tank maintenance and construction

TERMINALS MAGAZINE

HUB OF THE MATTER

TruAbrasivesTM are the perfect abrasive for your projects, allowing for quality, performance and health benefits.

Analysing the world’s major hubs – Cushing, Singapore, Antwerp • • • • • • • •

100% recycled glass Non-reactive & inert, suitable for use around water Less than 1% free silica Does not require Beryllium exposure controls, as with slags* White post-blast finish Translucent dust for increased visibility QPL, SSPC AB-1, MIL-A-22262B(SH), CARB approved (select plants) Coast-to-coast availability

FOCUS ON LATIN AMERICAN STORAGE China as a US crude export market

*As defined by OSHA Beryllium Rule for permissible exposure limits

WINTER 2018 EDITION

1-866-775-6226 Abrasives@StrategicMaterials.com

Our regional sales managers are NACE Inspector Certified.

Contact us today to work with our highly trained team. © 2018 All Rights Reserved. TRUABRASIVES is a trademark of Strategic Materials, Inc.

Drones take off in Europe

www.TruAbrasives.com D E D I CAT E D 1 0 0 % TO T H E G LO B A L TA N K S TO R AG E I N D U S T RY

Delivering engineering, procurements, quality assurance and maintenance to its clients across the oil, gas and petrochemical industries, Diorca Industrial has more thank 25 years of experience ranging from initial feasibility studies to commissioning and start up.

Equipment supplied includes: 3 EPC Construction projects 3 Aluminum Geodesic Dome, and covers 3 Aluminum Internal Floating Roofs 3 SS seals for Internal and External Floating Roofs 3 Steel plates, pipelines and accessories 3 Drainage systems 3 Fire-fighting systems 3 Instrumentation and measuring systems 3 Hoses, Valves, Vents, Flame arresters, Detonation arresters, and Measuring hatches 3 Aluminum silicate abrasives for blast-cleaning.

DIORCA INDUSTRIAL, CA Frater Radulphusweg, #1-A, Habaai Willemstad, Curacao, Dutch Caribbean email tanks@diorca.com

Services provided include: 3 Inspection and Technical Advising on optimization of Storage Tanks 3 Installation of Aluminum Geodesic Domes for storage tanks, and residual water purification systems 3 Installation of aluminum membrane on tanks with fixed roofs 3 Installation of primary and secondary seals for storage tanks with External Floating Roofs 3 EPC Construction of oil Atmospheric Storage Tanks or Pressurized Storage Tanks 3 Cleanup and recovery of oil products in tanks 3 EPC Construction, Installation, and Maintenance of metallic structures 3 Manufacturing, Installation, Repair, and Maintenance of Fire Fighting Systems 3 Piping Installation, construction and assembly 3 Installation of drainage systems 3 Clean-Blasting services 3 Industrial Painting 3 Tank Bottom grit blasting and painting 3 Cathodic protection in tanks and pipelines.

ISO 9001: 2015 Certified

WORD FROM THE EDITOR

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To buy or not buy Recent months have seen an interesting development in that two leading US midstreamers have retreated from international operations.

First, Buckeye Partners announced it is selling its 50 percent stake in VTTI for US$975 million in cash, against the $1.15 billion which it paid in 2016. It is also selling a package of domestic pipelines and terminals for $450 million.

Then, NuStar said it is offloading its European terminals to Inter Terminals Ltd for $270 million. It is tempting to view both moves through the prism of the isolationist mood engendered by the incumbent White House administration, and they also raise questions about the value of midstream M&As. But in both cases the reasons seem to be specific to the partnerships individually, and the general state of the master limited partnership (MLP) market. Certainly, Buckeye CEO Clark Smith attributed the sale to current conditions in MLP equity markets that have significantly increased the partnership’s cost of capital.

The original thesis for Buckeye’s investment in VTTI was to gain access to international terminals in key hubs in emerging markets. However, the capital markets have deteriorated since the acquisition and given the scarcity of reasonably price sources of capital, Smith concluded that Buckeye and its unitholders are better served by allocating available capital to growth prospects across its domestic assets, particularly opportunities it sees along the US Gulf Coast.

The sale also eliminates its share in VTTI debt of approximately $500 million and, very importantly, avoids any future capital investment requirements to expand VTTI’s asset base.

Similarly, NuStar has fallen out of favour with investors in MLPs. Its debt servicing needs have also worried the markets. Hence, selling non-core assets like those in Europe, albeit relatively profitable ones, will allow NuStar to expand its growing presence in the Permian Basin without calling for significantly more capital.

By-the-by, Inter Terminals looks to have snapped up a bargain, particularly in gaining a foothold in Port of Amsterdam.

But it all goes to show that venturing outside one’s domestic market has pitfalls; not necessarily abroad but also because domestic pressures can force a sale simply to shore up what you have at home. .

Neil Madden EDITOR

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CONTENTS

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36

Progress in Mexico

Drones in Europe

Cushing – the hub of all hubs

Contents 13

World terminal news

All the news from the global terminal sector

28

Onwards & upwards

The Amsterdam-Rotterdam-Antwerp range is setting a record year for storage construction

32

Inter to Amsterdam

Inter Terminals is buying NuStar’s European bulk liquid storage business

34 The Digital Inspector

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Automated inspection technology is being pioneered by Vopak

36

From pipeline capital to microbrewery Digital inspection

The role of Cushing is changing, but it remains as important ever

42

Fuelling the lion city

47

MOL comes to town

51

The peace dividend

55

Special Focus On Latin America

74

Upstream & Downstream

80

Over there and over here

85

Equipment focus

111

Technology & automation

118

Upcoming events

Latest news from along the bulk liquid supply chain

Europe is waking up to the opportunities presented by the use of drones

Applications and case studies from Alltec, Belzona, Implico, Emerson and Newson Gale

What’s new in process industry technology, equipment & automation

A preview of upcoming conferences and exhibitions for the global storage business

What is likely to drive tank storage investment in Singapore and the surrounding region?

A significant new investor is coming to Belgium’s Port of Antwerp

The US-China tariff war overshadows an important opportunity for American crude producers

34 STO RAG E T E R M I N A L S M AGA Z I N E W I N T E R 2 01 8

A 12-page special report on upstream, midstream and downstream developments in Mexico and Brazil

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Turkey’s Leading Liquid Terminal

INTEGRATED QUALITY MANAGEMENT

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ECO HEALTH AND SAFETY PROCESSES

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PUBLISHER Greg Emmenis greg@storageterminalsmag.com OPERATIONS DIRECTOR

Abby Davey abby@storageterminalsmag.com

The front cover is proudly sponsored by Fisher Tank Company (fishertank.com)

EDITOR Neil Madden editor@storageterminalsmag.com ONLINE EDITOR

Katerina Kerr katerina@storageterminalsmag.com DIGITAL MARKETING MANAGER

Louise Cox louise@storageterminalsmag.com ALICIA YOUNG Business Development Manager alicia@storageterminalsmag.com DESIGN Julie Lodge marketing@storageterminalsmag.com ADVERTISING t: +44 (0)20 8432 9509 m: +44 (0)7877 003 195 advertising@storageterminalsmag.com

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VALUE – Over 95% of AT&V’s 3,500 projects were awarded on lump sum price with industry leading schedules. From gas to cryogenic storage, contact AT&V to incorporate All The Value in your next project.

WORLD TERMINAL NEWS

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World

Terminal NEWS

GPS, EQUINOR to DEVELOP LPG TERMINAL

S

outh East Asia is to receive its first independent LPG storage facility. Global Petro Storage (GPS) has signed a long term agreement with Equinor, a multinational energy company, to develop the terminal in Port Klang, Malaysia.

The new facility will be the first independent, refrigerated LPG terminal in Malaysia, and will provide storage services exclusively to Equinor.

Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as selling volumes to markets like Bangladesh, the Philippines, India, Indonesia and Vietnam.

The facility will have capacity to turn over 1.5million tonnes of LPG each year and will be able to handle very large gas carriers (VLGC) and pressurised LPG vessels on its jetty. Work will begin in January 2019 and the 135,000 cbm terminal should be completed by early 2021.

GPS is the majority shareholder for the project and will develop, own and operate the LPG facility.

Eric Arnold, Managing Director and

STO RAG E T E R M I N A L S M AGA Z I N E W I N T E R 2 01 8

CEO of GPS said: “The new LPG terminal is a highly strategic, unique asset that will give Equinor a new platform in South East Asia, and enhance its reach into the region, where the LPG market is growing.”

GPS and Equinor’s agreement to develop the facility represents the first time the companies have entered into formal partnership.

The announcement in Malaysia comes just one month after construction began on GPS’s terminal project in the Port of Hamriyah in the United Arab Emirates (UAE) with two long-term partners. The terminal, GPS’s first investment in the Middle East, will provide services for industrial reprocessing of waste oils, trading, import and bunkering.

The new LPG terminal in Port Klang is a strategic asset that will give Equinor a new platform in South East Asia

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WORLD TERMINAL NEWS

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HES BOTLEK COMPLETED

Odfjell is increasing its share in the Noord Natie terminal from 12.75 to 25 percent

Phase 2 of the HES Botlek Tank Terminal expansion project is now complete, according to HES International.

“Although the tanks were already operational for a while they still needed to be painted. With the completion of this paintwork Phase 2 is officially concluded,” the company said.

“The current capacity of 490,000 cbm will however soon be expanded again as we will start the next project on short notice. This expansion consists of six tanks for biofuels with a total capacity of 20,000 cbm. All our investments are backed by multiyear customer contracts.”

ODFJELL STRENGTHENS GROUP ROLE STORAGE Odfjell SE has taken a stronger role in its terminals business and has converted Odfjell Terminals BV (OTBV) to a 100 percent Odfjell SE controlled holding company.

A

s previously announced, Lindsay Goldberg (LG) is exiting as joint venture partner for Odfjell Terminals. Odfjell SE has taken this opportunity to restructure, and is now strengthening its foothold in tank storage with this holding company and by increasing ownership in Antwerp’s Noord Natie Odfjell Terminals.

As a part of LG’s announced exit plans, the investment bank has converted its shares in OTBV into 49 percent direct ownership in two separate joint ventures owning the terminals in the US and Asia.

“With Antwerp being the most important port for chemicals in the EU, Odfjell is taking another strategic step.

We remain fully committed to our tank terminal business, and our focus going

14

forward will be to grow and optimise our portfolio,” said Kristian Mørch, CEO of Odfjell SE The ownership share in Noord Natie increases from 12.75 percent to 25 percent, and this stake is wholly owned by the holding company. The holding company will be the management company of Odfjell’s global terminal assets and will be the operating partner of the joint ventures in the US and Asia. Odfjell will provide management, support, knowledge, and systems.

“After our recent divestments we can now fully focus on growing our footprint of terminals as well as on the synergies with Odfjell Tankers. We see great potential for the terminals in our portfolio,” said Frank Erkelens, CEO of Odfjell Terminals.

NOVATEK, FLUXYS PLAN ROSTOCK LNG TERMINAL PAO Novatek and Fluxys are to construct an LNG terminal in Port of Rostock in Germany.

The joint venture is for the design, construct, finance, own and operate a mid-scale LNG transhipment terminal with capacity of approximately 300,000 tonnes a year in Rostock.

The LNG terminal will receive carriers from the Cryogas-Vysotsk liquefaction facility that Novatek is currently constructing in the port of Vysotsk near the Saint-Petersburg area and further LNG deliveries to the consumer market will be made via trucks. The LNG terminal will also have an option of bunkering and loading of bunkering vessels.

“One of our LNG strategic initiatives is to develop small- to medium-tonnage projects to target niche markets and customer segments,” noted Leonid Mikhelson, Novatek’s chairman.

“Moreover, the terminal at Rostock allows us to market LNG as a marine fuel and motor fuel instead of diesel and fuel oil that will contribute to decreasing emissions and improving the environment.”

Tarsco tank task TF Warren Companies, Tarsco and Tarsco Bolted Tank, are to provide the engineering, procurement and construction (EPC) for a project consisting of three stainless steel tanks located in the United States.

Tarsco Bolted Tank will specifically be installing the internal piping for the digestor equipment.

STO RAG E T E R M I N A L S M AGA Z I N E W I N T E R 2 01 8

WORLD TERMINAL NEWS

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Corpus Christi is where the incremental barrels want to go

P

ort of Corpus Christi Authority announced that it had entered into an agreement with The Carlyle Group to develop a major crude oil export terminal on Harbor Island. The terminal would be the first onshore location in the US capable of providing export service to fully-laden very large crude carriers (VLCCs).

VLCC access at Corpus Christi will open global markets for US oil producers, pipelines, their supply chains and customers. The result could produce up to a US$50 billion annual reduction to the national trade deficit, the partners claim.

Under the terms of the agreement, the Port will work exclusively with Carlyle to bring together oil producers, marketers, pipeline operators and marine terminal operators to ensure a significant portion of the new oil production in Texas, particularly from the Permian Basin region, will have a reliable gateway to international markets.

Carlyle agreed to lead the construction and ongoing operations of the terminal on an exclusive basis. Carlyle also agreed that it would arrange for a private funding solution for a dredging project to bring fully-laden VLCCs to Harbor Island, which has a 75 ft main channel depth.

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EXPANDING CORPUS SET FOR ANOTHER NEW terminal Further evidence that the Texan port of Corpus Christi is spearheading US crude oil exports came in October.

Construction of the terminal would require no capital outlay from local taxpayers, and the port expects to see significant regular rental payments, volume-based tariff income, land grants and other proceeds that will help the port fund other aspects of its operations.

The terminal is expected to be operational in late 2020. Carlyle’s equity for this investment will come from its Global Infrastructure Fund.

The terminal would include the development of at least two loading docks on Harbor Island as well as crude oil tank storage inland across Redfish Bay on land secured by Carlyle, so reducing the facility’s footprint on Harbor Island itself.

“A project of this magnitude underscores the vital role the Port of Corpus Christi plays in the global energy markets and as an important economic generator for the state of Texas,” said Sean Strawbridge, the port’s CEO. “In

partnering with such an experienced and well-capitalised firm as The Carlyle Group, the market should take notice and have a high degree of confidence of this project’s success.”

“Corpus Christi is certainly where the incremental barrels want to go as we have deep water, availability of land for development and plenty of capacity to absorb the forecasted US energy production growth in oil & gas,” added Charlie Zahn, chairman of the port’s board of commissioners.

For Carlyle, Ferris Hussein, managing director on the firm’s global infrastructure team, said: “Providing VLCC access at the Port is of critical importance to the United States, and we will collaborate with all stakeholders to ensure such service is provided.”

After federal restrictions were lifted in December 2015, Corpus Christi was the first port to export crude cargo and

17

WORLD TERMINAL NEWS

since then has shipped growing volumes overseas.

In March this year, the port announced that it had approved a lease agreement with CCI Corpus Christi Infrastructure LLC (CCI), an arm of Castleton Commodities International.

The lease concerns approximately 55 acres of land on the north side of the Corpus Christi Ship Channel in the Inner Harbor for the construction and operation of a terminal for exporting crude oil, condensate and refined petroleum products via a new oil dock.

However, all is not sweetness and light for the Gulf Coast port. The port authority has also lodged two objections to a planned development by Swiss commodities trader Trafigura.

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Trafigura wants to bypass Corpus Christi docks and siphon off port revenue to a deepwater offshore buoy. If the development goes ahead Corpus Christi could lose significant crude tonnage and up to 12 percent of operating revenue.

On 5 July, Trafigura subsidiary, Texas Gulf Terminals (TGTI) filed a deepwater port license application with the US Coast Guard, Maritime Administration, and US Army Corps of Engineers. The proposed terminal will use a single point mooring buoy system, located 12.7 nautical miles off the coast of North Padre Island in Kleberg County, to load VLCCs at a rate of up to 500,000 bpd.

An onshore storage terminal would be linked to crude pipelines from the Permian Basin and the Eagle Ford Basin

in South Texas by pipeline connections yet to be detailed. The existing pipelines deliver crude and condensate to dock and refinery facilities along the POCC ship channel and to Ingleside in the outer harbour. The initial construction schedule suggests that subject to permitting, the project could be complete by the end of 2020.

Trafigura is the sole sponsor and hasn’t yet received commitments to export crude from other shippers.

The trader has, however, signed a commitment with Plains All American for 300,000 bpd of crude capacity on that company’s Cactus 2 pipeline from Midland, in the Permian Basin to Corpus Christi, which is expected on line by fourth quarter 2019.

GIBSON ADDS AT HARDISTY

Gibson Energy has sanctioned 1 million barrels of new tankage at its Hardisty Terminal, in Alberta, Canada, underpinned by a long-term agreement with an investment grade, senior oil sands customer.

“With nearly a half-billion dollars of sanctioned growth capital relative to an annual target of C$150-200 million, Gibson has secured the projects required to exceed our 10 percent growth target through to 2020,” said Steve Spaulding, president and CEO. “Importantly, we remain fully funded for all our sanctioned capital through our non-core dispositions and retained cash flows from the first nine months of the year, including our expectation of another very strong contribution from the Wholesale segment in the third quarter. We also remain in discussions with several existing and potential customers regarding their needs for additional tankage and continue to expect we will sanction two to four tanks per year over the medium-term.”

The construction of two new 500,000 barrel tanks represents the third phase of development at the Top of the Hill portion of the Hardisty Terminal, and will leverage infrastructure built as part of the prior phases.

The third phase is expected to be in service in the first quarter of 2020 at a capital cost consistent with the company’s target build multiple of 5-7 times EBITDA. In aggregate, the three phases currently under construction will add seven new tanks, representing an incremental 3.1 million barrels of storage and an approximately 35 percent expansion of the Hardisty Terminal.

With the additional capital spending during the current year from the sanction of the third phase of development, the company has increased its 2018 growth capital expenditure budget to be in the range of $275-325 million.

Also at Hardisty, USD Partners has

entered into a four year contract extension with Cenovus Energy, significantly increasing its previous position from 7 percent to 25 percent of the terminal’s capacity.

The renewal contains consistent take-orpay terms with minimum monthly payments and rates that exceed those of the original terminalling services agreement with the customer.

Jim Albertson, USD’s senior vice president, Canadian Business Unit, commented: “This contract extension, along with the first extension we announced earlier this year, represents a meaningful increase in our contracted capacity at the Hardisty rail terminal and is confirmation of the significant demand that exists for takeaway capacity out of Western Canada. We continue to work with the balance of our customers as well as new customers on contracting the remaining available capacity.”

USD Partners has entered into a four year contract extension with Cenovus Energy at the Hardisty terminal

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WORLD TERMINAL NEWS

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GPI BUILDS WATER TANK Gpi has constructed an on-site tank for USG Geleen, Netherlands, with a capacity of 7,300 cbm. The tank has been designed to EN 14015, the European norm for flat-bottomed tanks.

The new buffer tank will provide demineralised water for the various companies at Chemelot for the coming years.

“Thanks to the professionalism at the Gpi construction manager and good cooperation with the project team members of the contractor and subcontractors, we’re more than happy with the result,” said Piet Beenhakker, project leader at USG. The project comprises a flat-bottomed tank with a sump. And that sump alone has a volume of over 8,000 litres. The tank also has a conical roof built to the EN 14015 standard that has a vertex of 158 degrees, a diameter of nearly 23m, is strong enough to walk on and takes the overall height to over 20m. That gives a gross volume of

approximately 7,600 cbm and a net volume of about 7,300 cbm.

Both stainless steel 304 and duplex steel LDX2101 were used for the tank. The lower part of the body is of LDX2101, which is stronger than SS304 and allows a thinner structure while retaining the structural strength. The tank floor, top and upper part of the body are made of SS304.

Working with Emerson Process Management and Bilfinger Industrial Services, Gpi has provided a complete blanketing system for the tank along with the associated safety valves. In addition, Gpi has provided the intake and spare valves.

LONGER JETTY FOR ETT Euro Tank Terminal (ETT) has extended its jetty in the Calandkanaal resulting in considerably increased occupancy.

Now the terminal can load or unload two large tankers at one time. Customer service team leader Lissy Helbers explained: “At our jetty in the Calandkanaal, we receive around 22 VLCCs a year. These large tankers are over 300m long and usually spend three or four days berthed at the jetty. Whenever a VLCC was berthed there, we had too little space to

20

handle a second large range (LR) tanker at the same time. With lengths reaching up to 280m, LR tankers are slightly shorter than VLCCs. In the past few months, we have extended the jetty by 20m and moved the berthing and loading/unloading infrastructure. Now we are able to load or unload a VLCC and an LR tanker simultaneously. This makes a huge difference to our jetty occupancy.”

The jetty extension was planned and carried out in co-ordination with Port of Rotterdam Authority. “During the preparatory phase, we sat down together to work out the available options along the Calandkanaal. This canal is an important shipping route to various port terminals. We

wanted to extend the jetty as much as possible without obstructing other shipping. This aim has been achieved,” Helbers added.

After the extension, on 25 June, ETT was for the first time able to receive and handle a VLCC (Atromitos) and an LR2 tanker (Ridgebury John Zipser) at its jetty. It was a 450,000 tonne cargo of fuel oil for two different clients. The VLCC was 330m long and the LR2 over 270m. This meant the jetty’s maximum capacity was being used. It should be noted that when a VLCC is being combined with an LR2 that is longer than 250m, ETT will always check at the site to ensure the smaller vessel is properly berthed.

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BARCELONA | BILBAO | TARRAGONA | VALENCIA

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Targray’s biodiesel solutions are offered at more than 40 tank locations throughout California and the Midwest

C

entrally located in West Fargo, North Dakota, the new terminal will provide local fuel retailers, distributors and fleet managers with greater access to biodiesel, a bio-based renewable fuel that produces 80 percent fewer CO2 emissions than petroleum diesel.

“The Fargo terminal is an important addition to our national biodiesel distribution network,” said Samy Cozma, a biofuels trader with Targray. “It provides a reliable local biodiesel solution for businesses operating in Fargo-Moorhead, one of the country’s fastest-growing metropolitan areas.”

Cozma added that the new terminal would also help address the increased demand for biobased diesel in Northwest Minnesota, stemming from the state’s recently amended biodiesel mandate.

On 1 May, Minnesota began requiring that all diesel fuel sold in the state contain at least 20 percent biodiesel (B20). The minimum content for the remainder of the year is 5 percent (B5). The state’s move to increase the use of biodiesel, a cleaner-burning alternative to petroleumbased diesel, has received strong support

TARGRAY OPENS Fargo BIODIESEL SITE Targray has announced the opening of its Fargo Biodiesel Terminal, a 24/7 fuel distribution centre serving wholesale fuel buyers throughout the Fargo-Moorhead metro area. from local clean air advocates, including the American Lung Association’s Upper Midwest Chapter.

Targray is a BQ-9000-certified marketer and distributor of high-quality B99.9 biodiesel. Supported by a dedicated rail fleet and a terminal network spanning the US, the company is committed to providing innovative biodiesel solutions enabling fuel retailers, distributors, jobbers and fleet operators to achieve greater profitability and competitiveness while helping create a more sustainable economy for future generations.

The company’s biodiesel solutions are

offered at more than 40 tank locations throughout California and the Midwest.

In June, Targray opened its Minneapolis–Saint Paul Biodiesel terminal, serving the Twin Cities metropolitan area.

“Targray’s Minnesota terminal will provide B20-ready turnkey biodiesel solutions for a range of customers in the Minneapolis-Saint Paul area,” explained Targray vice president Dan Murray. “Diesel distributors, truck stops, c-stores, travel centres, and fleets in the region will now be able access our high quality biodiesel 24/7 from a convenient central location.”

T O T A L’ S R U S S I A L U B R I C A N T S P L A N T Total has inaugurated a new state-of-the-art lubricants oil blending plant, located in the Kaluga region of the Russian Federation.

The blending and production plant will allow Total to localise the production of its lubricants for the Russian market. With an investment equivalent to US$50 million, the facility has been designed to produce initially 40,000 tonnes of automotive and industrial lubricants a year, with a scale-up option to bring this capacity up to 70,000 tonnes.

The plant is equipped with a fully automated blending system and modern filling lines. Covering an area of 7ha of the Vorsino industrial park in the Kaluga Region, the facility opened less than two years after the start of construction.

“As illustrated by our commitment to major LNG projects in the Arctic, Russia has become a key country for Total. In addition to our upstream activities, Russia is also one of the highest priority development markets for our marketing & services and downstream products, especially lubricants,”

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underlined Patrick Pouyanné, chairman and CEO. “With this production & blending facility opening in Kaluga, we are showing our strong dedication to Russian customers. This new plant will strengthen our position in the Russian and Central Asian markets. It is fully in line with our strategy to grow profitability in developing markets and contribute strongly to the Group’s financial performance.”

“The opening of Total factory once again confirms the economic and investment attractiveness of the Kaluga region for international partners,” commented Anatoly Artamonov, governor of the Kaluga region. “We aspire to provide the best conditions for companies which understand the importance of production localisation in Russia, develop the import substitution policy and take care about the environment by creating ecologically safe production plants. The government of the region is ready to support them in such important and long-term projects.”

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HAFESA INVESTS IN BILBAO Hydrocarbons holding company Grupo Hafesa has started a new stage of life in port of Bilbao, Spain.

T

hrough its subsidiary DBA the company has invested €12 million, part of which involved the conversion an old biofuel installation belonging to Zierbena into a warehouse and hydrocarbon tax warehouse, with storage capacity of

55,000 cbm, the products of which are destined for the domestic Spanish market through wholesale petroleum operator Hafesa Energía.

Grupo Hafesa, founded in 2016, aims to become a leader in the Spanish hydrocarbon market with a business model that integrates all distribution

and commercialisation phases, from purchasing internationally sourced products for subsequent storage in the tax warehouses, to wholesale commercialisation and, among other things, retail through its fuel station network Hafesa Oil.

PIN OAK SELLS MT AIRY Pin Oak Holdings has announced the sale of Pin Oak Terminals, LLC to MPLX LP for US$450 million in cash.

As part of the transaction, Pin Oak will retain an economic interest in the Mt Airy, Louisiana facility. Pin Oak is a partnership between Dauphine Midstream, LLC and Mercuria Energy Group Ltd. Mt Airy was the first asset developed, financed, constructed, and operated by Pin Oak. The greenfield site was acquired in 2012 with the objective of developing a full-service transport hub on the Mississippi River. Mt Airy has 4 million barrels of fully-leased storage capacity and an operational deepwater ship

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dock. The facility has the capability to expand its storage capacity to 10 million barrels and is permitted for construction of a second deepwater ship dock.

“Our team is very proud to have built a premier storage and logistics facility in Louisiana, and this transaction further validates our development strategy and ability to execute,” said Mike Reed, CEO. “We delivered top-tier logistics solutions for our customers, and we are pleased that our dedicated employees will continue to provide excellent service to our valued customers.”

“As the project’s initial developers, we remain grateful for our partnerships with the Port of South Louisiana, St John the Baptist Parish government, and the Sherriff’s office.

We look forward to seeing the continued growth of the terminal and building on our strong relationships with the local community,” said Harris Ziskroit, chief investment officer of Dauphine.

Pin Oak recently commenced construction on its liquid bulk export terminal in Corpus Christi, Texas called Pin Oak Corpus Christi. Since acquiring this in 2017, Pin Oak has executed an interconnection agreement with a crude oil pipeline and secured a multi-millionbarrel long-term storage contract, with the capacity to construct additional third party storage. Pin Oak Corpus Christi is expected to start full operations during the fourth quarter of 2019.

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BPGIC STARTS FUJAIRAH PHASE 2 WORK Brooge Petroleum and Gas Investment Company FZC (BPGIC) has announced the initiation of the expansion of its storage terminal in the emirate of Fujairah that will see the terminal’s capacity increase to 1 million cbm by the end of 2019.

Phase 2 of the BPGIC Al-Fujairah Terminal consists of eight tanks with a total storage capacity of 601,600 cbm.

Phase 2 tanks are mainly designed for storing crude oil, while flexibility of storing black products is also considered.

Four tanks will have a capacity of 107,700 cbm each and four will have a capacity of 42,700 cbm each. Phase 2 will also consist of building associated infrastructure, including a new pump manifold with high flow rate pumps meeting FOTT VLCC requirements, additional jetty lines, and other associated works. Common infrastructure built under Phase 1 is already designed to cater for the Phase 2 utilities, firefighting and power requirements.

Completion of construction of Phase 2 is planned for the fourth quarter of 2019.

“We are very happy to see that there are new investments going into the oil & gas industry, and we commend BPGIC for its efforts to grow and to contribute to the development of the energy industry,” said OPEC secretarygeneral Mohammed Barkindo. “There has been a sharp contraction in investment across the energy industry’s supply chain for two consecutive years, but the medium-to-long term oil demand is robust despite the headwinds, and so we hope to continue to see more investments in the near term.”

BPGIC’s terminal began operations in Fujairah in January 2018. The facility currently stores refined oil products, such as fuel oil and clean products, and provides a range of ancillary services such as blending, heating, inter-tank transfers and ship loading and unloading.

Currently, the company operates 14 convertible tanks. The terminal has the capability of having 11 simultaneous operations.

ARAMCO COMPLETES YANBU’ SOUTH UPGRADE

S

audi Aramco has finished the rehabilitation and upgrade of the Yanbu South Terminal, which adds an extra 3 million bpd of crude oil to its West Coast export capacity.

The facility, located south of Yanbu, on Saudi Arabia’s West Coast, comprises

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a tank farm and offshore facilities to receive, store and load Arabian Light and Arabian Super Light crude oil.

The company says that the rehabilitation and integration of the facility with the existing crude oil supply network reinforces its role as a reliable, global energy supplier.

Abdullah M Al-Mansour, executive head of pipelines, distribution and terminals, says: “The successful startup of the Yanbu South Terminal is another milestone in reinforcing Aramco’s goal to be the world’s leading integrated energy and chemicals producer, operating in a safe, sustainable and reliable manner.”

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