Tank News International - Autumn 2018

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Tank Storage & Logistics Autumn Edition 2018

t r u s t yo u r

the discus welded aluminum internal floating roof

Welded seams - zero loss | Best bolted seam ever tested No enclosed spaces | Designed to steel specs Patented technology

TA N K N E W S I N T E R N AT I O N A L : TA N K S T O R A G E & L O G I S T I C S A U T U M N E D I T I O N 2 0 18

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PETROCHEMICAL COVER SOLUTIONS

EFFICIENT IN DESIGN. DISTINCTIVE IN APPEARANCE. UNSURPASSED IN QUALITY AND VALUE.

Discus establishes a new LAER benchmark... the EPA’s lowest achievable emissions rate

www.DiscusEP.com | 520-575-1443

International news on the tank storage and logistics industries CST Industries | 498 N Loop 336 E | Conroe, TX 77301 USA | 844-44-TANKS | cstindustries.com

Photo: Cuff’s Industrial LLC

V i s i t u s at n i s t M booth nuMber #207

V i s i t u s at e n e r g y a P i booth nuMber #24

Tank Storage & Logistics Autumn Edition 2018

t r u s t yo u r

the discus welded aluminum internal floating roof

Welded seams - zero loss | Best bolted seam ever tested No enclosed spaces | Designed to steel specs Patented technology

TA N K N E W S I N T E R N AT I O N A L : TA N K S T O R A G E & L O G I S T I C S A U T U M N E D I T I O N 2 0 18

inner roof

PETROCHEMICAL COVER SOLUTIONS

EFFICIENT IN DESIGN. DISTINCTIVE IN APPEARANCE. UNSURPASSED IN QUALITY AND VALUE.

Discus establishes a new LAER benchmark... the EPA’s lowest achievable emissions rate

www.DiscusEP.com | 520-575-1443

International news on the tank storage and logistics industries CST Industries | 498 N Loop 336 E | Conroe, TX 77301 USA | 844-44-TANKS | cstindustries.com

Photo: Cuff’s Industrial LLC

1 AUTUMN EDITION 2018

D

ear Reader

Autumn is here and so is the third of four exciting Tank News International editions of 2018. This edition brings with it a very special petrochemical supplement.

The bulk liquid storage sector continues to diversify, operators in the U.S., Europe and Japan are increasingly turning to natural gas as an efficient alternative to conventional fuel. Furthermore, Qatar, Norway and Australia have significantly amplified their natural gas exports. Preferred usage of LNG is likely to have a favourable impact on the demand for liquid bulk terminals, serving vitally for oil and natural gas storage and trade activities. All of this is explored in this quarter’s edition.

We are proud to have a presence at, and be media partners with, a range of highprofile storage & logistics conferences and trade shows - all of which are previewed in this edition.

It includes input from experts throughout the industry across all six sectors (Storage Terminals, Road Tankers, Tank Containers, Ports, Shipping and Rail) with special attention placed on the European liquid bulk storage sector.

We hope you enjoy reading this issue as much as we have enjoyed putting it together. We wish you a wonderful rest of the year, and we will see you in Winter.

TA NK NE WSI NTE R N ATION A L .C OM

Our strategy for growth in 2018 remains unchanged - we are working hard to build partnerships with industry exhibitions and conferences and focussing on various communication channels to share news as and when it breaks.

nis e mm E Greg Publisher

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10 AUTUMN EDITION 2018

Contents MARKET FOCUS

S TO R AG E T E R M I N A L S

TA N K CO N TA I N E R S

15 & 17 A tank storage broker’s perspective

22 - 26 UK Storage - The Next Step

118 Hoyer Group continues to successfully drive…

29 & 31 Industry leaders are gearing up for the shift…

121 & 123 SGS, ABS & Gold Tank Inspection Service

33 Petronet LNG plans… / Offshore production starts…

124 The science behind a… / Eurotainer acquires…

35 & 37 Considering a new loading arm?

126 Crowley doubles tank container fleet…

38 Vapour Corrosion Inhibitors mitigates soil-side…

127 Port of Antwerp and Bureau Veritas hold…

40 & 41 Tankbank 2018

129 Kärcher talks high pressure / Eurotainer appoints…

42 & 43 U.S. diesel demand growth reverses…

131 100 Volvo FH trucks… / Container exchange…

44 & 45 Oil industry stands on threshold of historic step…

133 HOYER Logistics Australia expands existing…

SHIPPING

144 New LNG ships set sail… DNV GL releases new…

145 New JV, ClearOcean Tankers orders six…

147 IMO takes first steps to address autonomous…

148 State of the Shipping Market 149 BIMCO sets new standard with revised…

151 U.S. China Trade War: A Shipper’s Guide

46 Tales from a Trade Show 48 & 49 Advanced storage tank inspection with next…

50 What’s your response to emergency response?

51 Gate terminal to increase… / Magellan Midstream…

R OA D TA N K E R S

52 - 54 Fujairah: The Middle East’s hub

134 Abbey upgrades its fleet with an investment…

57 ExxonMobil greenhouse gas reduction measures…

135 OpenTAS Certified for EMCS 2.3, starts migrating…

PORTS

59 ExxonMobil highlights growth plans and advances…

136 WABCO signs its largest ever contract in South Korea…

152 New JV, ClearOcean Tankers orders…

60 Stena Oil develops new marine fuel terminal…

138 & 139 SAVVY Telematic Systems and Wascosa…

153 & 154 Investments in LNG have a long way…

63 FOS Cavaou LNG Terminal gearing up for LNG…

140 Clean Energy advocates… / Agility Fuel Solutions…

154 British Ports reacts to new ‘Free Ports’ report…

65 Total expands partnership with Novatek…

142 Nikola awards multi-billion NOK electrolyzer…

156 Port of Tyne…/Yamal LNG… / IMO training…

67 Repsol and Google Cloud team up to optimise…

157 Free trade agreement between EU and Japan

68 - 70 Octopus Reengineering recruitment…

73 - 75 Surface Tension 77 Sempra selects Bechtel as EPC contractor…

RAIL

79 Magellan Midstream and LBC to further expand…

158 Vopak Terminal ACS… / Koole Tankstorage Minerals…

81 EMP Defense enters BETA testing phase…

160 VTG Fasttrack… / RFG submits evidence…

174 Varec 90th

85 Trafigura submits plans for new offshore…

161 NYA holds tank car safety training… / CN rail…

175 Elsont / A.R. Watson

87 Oxy to sell Ingleside oil export terminal…

162 MassDOT awards $1.8m in grants to expand…

89 Ikon Midstream opens new fuel terminal for…

163 - 165 Static grounding protection for rail tankers

CO M PA N Y P R O F I L E S

91 Changing Trades 166 R O L E S A N D R E S P O N S I B I L I T I E S

93 Engro Corp and Vopak… / Oiltanking Africa…

95 & 97 New laser scanning technology…

99 Duqm Refinery issues a Notice to Proceed…

EVENT REVIEW

100 AGL reaches key milestones for proposed LNG…

167 ILTA Houston

102 Mobil to expand… / Pryme Group acquires Hydratron…

168 Global Petroleum Show

TA L E S F R O M A T R A D E S H O W

104 U.S. natural gas production expected to grow…

46 A blast at ILTA

106 Port of Corpus Christi…

108 BP transforms its U.S. onshore oil and gas business…

110 Kinder Morgan, EagleClaw Midstream and Apache…

112 Construction underway at Enterprise & Navigator…

N E W T E C H N O LO G Y

19 & 21 Emco Wheaton / Dantec / Emerson

115 Eagle LNG Partners officially opens its Maxville…

116 Sanchez Midstream Partners expands JV…

TA NK NE WSI NTE R N ATION A L .C OM

EVENT PREVIEWS

169 Intermodal Europe 170 PetroTrans / Bulk Liquid Storage Europe 171 Tank Storage Asia / IPE 172 ADIPEC / Gastech 173 EPCA / NISTM

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TANK ANALYSIS • • • •

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TO FIND OUT MORE ABOUT ADVANCED 3D LASER SOLUTIONS CONTACT COLIN PITTMAN DIRECTOR

Advanced 3D Laser Solutions Ltd, The MedBIC, Alan Cherry Drive, Chelmsford, CM1 1SQ T: +44 (0) 1245 407551 M: +44 (0) 7435 760153 E: colin@lasersurveying.com For Benelux enquiries contact René van Eerten T: +31(0)610741994 E: rene@induzzsolutions.nl www.lasersurveying.com TA NK NE WSI NTE R N ATION A L .C OM

12 AUTUMN EDITION 2018

Greg Emmenis Publisher | Head of Sales +44 (0) 7877 003195 greg@tanknewsinternational.com

The front cover is proudly sponsored by Tarsco Bolted Tank. (tfwarren.com)

Katerina Kerr Editor +44 (0) 7957 633 494 katerina@tanknewsinternational.com

TankNewsInternational.com shares news covering the entire tank

Abby Davey

storage and transport markets and welcomes editorial submissions

Operations Director +44 (0) 7817 105258 abby@tanknewsinternational.com

covering new product launches and enhancements, case studies,

Louise Davey

We also want to hear about your events and exhibitions and

Business Development 44 (0) 203 380 2844 louise@tanknewsinternational.com

videos which we will add to our fast growing YouTube Tank News

Peter Lyons Staff writer peter@tanknewsinternational.com

regulation changes, technical articles and company news.

welcome the submission of company, case study and product International channel which links to our website.

As well as sharing the latest industry news we aim to assist you in your search engine optimisation (SEO) activities by sharing your news and using our range of social media channels: Facebook, LinkedIn and Twitter to promote that news and grow your online

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TANK AND TERMINAL DEMOLITION

SERVICE

1968

ATING R B E L CE

BETTER SAFETY PERFORMANCE BETTER PRICES FOR SCRAP METAL

NATIONWIDE | SINCE 1968 www.midwest-steel.com PHONE (713) 991-7843

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YEARS 2018

15 AUTUMN EDITION 2018

MARKET FOCUS

A tank

STORAGE BROKER’S PERSPECTIVE

The terminals market is dynamic! Existing tank terminals are expanding, and new terminals are being built. There is enough private equity money around to invest in 12% return projects, but less returns, sub 10%, have also been accepted.

P

rivate equity companies are not to be compared with regular storage companies: they are not as interested in supply & demand or have safety as a main priority like the regular terminal operator, their main focus is return on investment. Terminal acquisitions are in the news regularly and the usual suspects are investment funds and private equity companies. These companies pay high multiples for terminals where organic growth is possible. Green field terminals are less attractive for these kind of participants as these terminals will only cost money in the first years as no revenue is being created. Existing terminals with existing long-term contracts and expansion opportunities are therefore more favourable.

This may sound as if the future is bright, but the outlook is not as rosy.

The shipping market has shown a similar pattern with overcapacity as a result.

Chinese shipyards were able to build

are expensive to build and that terminals would normally only agree to build those tanks in exchange for a long-term contract.

On the oil product side, we see a trend that trading companies and oil majors would rather close short term (spot) contracts instead of committing to long-term contracts. Their long-term contracts were priced at higher levels previously and due to current ample vessels at a low cost, which created availabilities spot contracts are priced overcapacity in the market. Is this what lower. This is obviously partly due to will happen to the storage industry too? the shape of the curve of the different Will we witness overcapacity in the products, but it also has to do with years to come? increased interest in optionality and Of course, as the human flexibility. Oddly enough, this benefits population keeps increasing, the standard terminals as well, as they would rather of living growing and the demand for close short-term deals at lower rates chemicals increasing, oil products and than close long-term deals with vegetable oils won’t experience the current low fee benchmark. a decline anytime soon. But So, are long-term bear in mind that terminals OPTIONALITY contracts easy to conclude? are built for a 40- to 60-year AND Our business is changing lifespan, so the question FLEXIBILITY constantly and rapidly: What is whether they can adapt was shipped in 1,000 mt lots 10 in a timely manner to ever years ago is now being shipped in changing storage requirements.

3,000 or 5,000 mt lots. New chemicals For chemicals we are already and oil products are being produced witnessing a growing demand for stainless or approved or even mandatory for steel for more aggressive products or international transport. Biofuels are up high-quality products. The same applies and coming and LPG is being talked for vapour treatment demand due to about more and more. As a producer stricter emission rules and regulations.

These tanks are currently not easy to Continued on page 17 find and the reason for this is that they

TA NK NE WSI NTE R N ATION A L .C OM

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17 AUTUMN EDITION 2018

As storage brokers, we often wonder if customers select the right terminals and whether the perfect terminal can be built. In both cases it is mostly money related.

Continued from page 15

or trader, is it realistic to commit to a cheapest solution. Efficiency is tank storage agreement for a minimum expensive: enough jetties to minimise of 10 years? Even a 5-year agreement the demurrage exposure for the means a 7-year exposure as you need to customer and the right infrastructure to allow another two years for a terminal to avoid contamination of the customer’s apply for permits and the construction. product. Flexibility is expensive too In seven years the world could change and to achieve your high return goals completely. Therefore closing long-term you may choose to build more tanks contracts can be very challenging unless instead of spending your money on you have some specific advantages: a more expensive flexibility and efficiency connection (pipeline) to the producer enhancements. We have seen examples or in the case that the tenant’s supply where long-term contracts were chain is completely dependent on the concluded and where the greenfield terminal. design became a project. As the As storage brokers, we terminal construction costs often wonder if customers overran, concessions were select the right terminals and made on the infrastructure: COMPARING whether the perfect terminal no flow meters per tank, COSTS can be built. In both cases it is but scales. No dedicated mostly money related. lines, but common lines. No Customers often go for high pumping capacity but the terminals with the lowest fee. cheaper pumps. Even though these Variable costs such as nitrogen, heating performance indicators were stipulated and cleaning costs can raise the cost in the long-term contract, the terminal’s per metric tonne enormously and at performance was compromised the time of concluding your contract it over costs. is important to discuss those or include The best terminals with the them in the storage rate or at least agree highest returns are contrary to what to a maximum - but what is a fair amount you may conclude from the above, the and how can such costs be compared? terminals with all the bells and whistles: This requires more than just comparing these are the terminals that can handle plain offers. It requires understanding the railcars, blend, do in-tank transfers, tank design for instance to estimate the handle trucks in minutes rather than nitrogen usage (what vents are being hours, have dedicated lines and lots of used) and this is not easy. jetties. These terminals can measure the Terminals often go for the nitrogen use per tank, are able to empty

TA NK NE WSI NTE R N ATION A L .C OM

MARKET FOCUS

tanks completely, work with empty lines and have no heels. Why do they make the high returns? Because they have satisfied customers and all their tanks are rented out with long-term contracts, because they hardly have claims and because they operate dedicated lines that make it safer to work at such a terminal. So, terminal operators, please keep investing in your infrastructure and capabilities rather than just increasing your capacity, it will pay back in time! For both cargo owners as well as terminals a specialised broker, such as a storage broker can help you with making the right decisions.

Still, the use of a broker is being questioned by some cargo owners but more so by some terminal operators. As a cargo owner, do you have in-house knowledge on nitrogen use, or heating costs? Probably not, but we can assist! Do you as cargo owner, make the terminal selection based on the rate or on the performance of a terminal? Rest assured, the performance will save you money even though at first sight the terminal seems to be the more expensive option.

As a terminal operator do you know all potential customers in the world or do potential customers know how to find you?

Probably not, but we can assist! Finding the right person in an organisation is the most difficult part of our business. By the time you’ve found the person, he or she could have moved on to another position in or outside that organisation. Any additional help to make the match happen should be grabbed with both hands. Finally, terminal operators, please keep investing in your infrastructure and capabilities rather than just increasing your capacity, it will pay back in time!

For more information visit www.rvbcompany.com

19 AUTUMN EDITION 2018

N E W T E C H N O LO G Y

NEW PRODUCTS &

technologies

The development of new products and technologies, along with the work of industry innovators, is what enables the tank storage and logistics industries to grow and thrive.

In this edition of Tank News International we highlight five new products that have been designed to increase the productivity of their users.

If you would like to submit a product to be featured, please email editor@tanknewsinternational.com

Emco Wheaton

Offering single operators effortless and accurate handling, the Unsupported Boom Loading Arm from Emco Wheaton is designed to handle the safe and efficient transfer of chemical and petroleum products to and from road and rail tankers.

In applications where accurate spotting is required, the Unsupported Boom Loading Arm can be used by one operator with ease and will simplify the loading and unloading of tank trucks and tanker railcars. It also helps prevent specialty chemicals from foaming and prevent upward force of the loading arm while liquid is running through the pipe.

Available in pipe sizes 2” to 6” diameter, the loading arm contains the D2000 swivel joint, an ultra-low maintenance, high performance swivel joint for nearly all media with temperatures ranging from -49° to 482°F (-45° to 250°C).

The arm is designed to hold its own weight with no supplementary support system required. This allows the arm to be installed comfortably in areas with limited clearance and where space is at a premium.

The Unsupported Boom Loading Arm is designed to operate reliably in hazardous conditions, ensuring that liquid is delivered without spillage or contamination, at all times protecting the operator and the environment.

For more information visit www.emcowheaton.com

Dantec Revolutionary Composite Hose Bend Limiter Composite Hose has found its place in the heart of both shipping and storage industries fluid transfer processes. Its key benefit over alternative hoses and loading arms is that it is light weight, highly flexible and can be used for multiple purposes.

Being manufactured from multi layers of thermoplastics and an inner and outer wire helix, the hose has a long shelf life and high safety factor. However, it still can be damaged. The majority of end users see the benefits of composite hoses outweighing the negatives, and its worldwide usage is at an all time high.

Dantec Limited, a world leader in composite technology, (who manufacture 100% of their hoses at their

Unsupported Boom Loading Arm

Continued on page 21 TA NK NE WSI NTE R N ATION A L .C OM

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Tankvision Professional NXA85: The so�ware manages your data from the field reliably and in the size of your tank farm.

21 AUTUMN EDITION 2018

N E W T E C H N O LO G Y

Continued from page 19

UK manufacturing site), always strive to put safety at the forefront of their products. To ensure safe practice and to add longevity to the hoses Dantec supply, a hose handling guide including storage, testing and inspection guidelines is included with every one of their large bore hoses.

Through market research and working closely with their end user customers and quality assurance departments, Dantec has found that 70% of composite hose failures are due to a lack of support at the critical termination point.

Thus causing overflexing and bending of the hose in the transition area between the relatively soft and pliable hose wall and the hard end connection area.

Dantec is fully focused on developing a cost effective solution to increase the longevity of composite hoses for its users, with this in mind, Dantec has designed and developed the first ever Composite Hose Bend Limiter Dan Pro~Tec BL. This innovative product fixes to the outside of the composite hose on the first string at the tank or ship side adding support to the hose, eliminating the overflexing and bending concern.

The product can be easily moved, stored and can extend the life of all hoses.

It will be initially available in 6“, with an 8“ version to follow and other sizes subject to demand.

Rosemount™ Smart Pressure Gauge

Emerson Emerson has introduced the Rosemount™ Smart Pressure Gauge to help users gain better visibility of field changes.

The Smart Pressure Gauge utilises industry-proven Rosemount pressure sensor technology to deliver reliable pressure readings. With the flexibility to accommodate changing process conditions, the Smart Pressure Gauge gives up to 150X overpressure protection and provides a safer field environment. By utilising two layers of process isolation, the Smart Pressure Gauge can help prevent process failures

For more information visit www.dantec.com

Composite Hose Bend Limiter Dan Pro~Tec BL

from becoming dangerous by preventing employee contact with process fluid by keeping it safely inside the pipe.

The gauge’s Rosemount pressure sensor technology replaces 100-year-old bourdon tube gauge technology, eliminating weak points common to mechanical gauges. Mechanical gauges are plagued with quality and reliability issues associated with overpressure, vibration, corrosion, extreme temperatures and accidental damage, and can contribute to numerous reliability and safety issues in plant environments.

Additionally, mechanical gauges are unable to communicate device status.

With up to a 10-year life, which reduces maintenance cost and time, and increased visibility from a large 4.5-inch face with status indicator light, the gauge provides easy field visibility. The new Rosemount Smart Pressure Gauge expands the Emerson gauge portfolio.

“The industry response to the Rosemount Wireless Pressure Gauge has been positive, and now with the addition of the Smart Pressure Gauge, our customers have even more options for upgrading their problematic gauges,” said Sven Hendrickson, Product Manager for pressure gauges.

For more information visit www.emerson.com

TA NK NE WSI NTE R N ATION A L .C OM

22 S TO R AG E T E R M I N A L S

AUTUMN EDITION 2018

UK STORAGE THE NEXT STEP

Bulk liquid storage in the UK is an essential part of the supply chain providing an interface between sea, road, rail, inland barge and pipeline logistics. The tank storage sector provides many of the raw materials and finished products required to ensure that the UK economy thrives, and energy needs are met.

I

t is worth noting that the UK is a net-importer of both diesel and aviation fuels, fuels imported to, and distributed from, bulk liquid storage facilities.

On July 9, 2018 the UK Government released its Road to Zero – Next steps towards cleaner road transport and delivering our Industrial Strategy, in which it announced plans to become carbon neutral by 2040. The plans could have a significant impact on the tank storage and liquid bulk industries. Additionally, on a

IMO regulation in 2020, shippers will have to consider a switch to alternative fuels, such as Ultra Low Sulphur Fuel Oil (ULSFO) or marine gas oil (MGO), or install scrubbers, a system that removes sulphur from exhaust gas emitted by bunkers.

The Tank Storage Association (TSA) stated that it recognises the UK’s need for decarbonisation and the focus on road transport as a major contributor global scale, the International Maritime to this goal. However, it also expressed Organization (IMO) announced a some concerns over the Road to Zero planned 0.5% sulphur cap on strategy for the bulk liquid storage bunker fuels that will be in sector, and more widely for the place by 2020. downstream oil industry. TNI Fuel oil, which is spoke to TSA President Paul ALTERNATIVE high in sulphur content, has Denmead to find out more.

FUELS traditionally been used by the “I can’t see that shipping industry as bunker there’s going to be a massive fuel. In 2017, global demand for switchover for vessels going to high-sulphur fuel oil stood at over big alternatives. We don’t see a big 70% of overall bunker fuels. change in ship’s habits as far as installing With the implementation of the Continued on page 24 TA NK NE WSI NTE R N ATION A L .C OM

+44 (0)1642 543615 +44 (0)1642 543633

24 S TO R AG E T E R M I N A L S

Continued from page 22

scrubbers so they can keep burning heavy fuel oil,” he said.

“LNG is slow on the uptake as well.

We are not seeing a massive demand for it, and even though it is being pushed by governments, there’s no big increase in energy storage or facilities for vessels.”

He notes that there are initiatives in the UK to encourage a move towards LNG in the shipping sector but as the costs involved are high, there would have to be a major shift in demand before anything will change significantly.

“We are very much aware that there are going to be big changes in 2020 as a result of the sulphur emissions cap, but that hasn’t yet translated itself into big changes from the fuel suppliers physically.

There is no great demand for different types of storage yet,” said Paul. “But we expect there to be a significant drop in the demand for heavy fuel oil, and an equal increase in demand for marine gas oil. We think that will probably kick in towards the end of 2019. It is likely to happen soon as vessels start getting themselves prepared for the 2020 switchover.”

He predicts that once the 2020 deadline is reached, the industry will see demand for different grades of gas oil and more product segmentation. He also noted that it is unlikely that we will see the construction of new facilities, “it is more likely that we will see the cleaning of excess heavy fuel for storage and facilities converting for the storage of distillate fuels.

Hydrocarbons account for over 60% of the volumes of bulk liquids stored at TSA member sites and provide the infrastructure necessary to support the UK demand for transport fuels. UK businesses also rely on these facilities for the export of bulk liquids including gasoline. Import

AUTUMN EDITION 2018

facilities also provide greater resilience carbon neutral and have all vehicles on within the supply chain by ensuring the road to be electric by 2040 could flexibility to meet demand, particularly have a significant impact on the tank in periods where domestic supplies of storage industry based on the fact transport fuels cannot be guaranteed. that there will be a downturn in liquids Recent reports have indicated storage over the next 30 years,” that a global peak oil demand said Paul. will not be expected until He notes that emerging 2036, a failure to manage technologies should also PRODUCT decarbonisation and any be considered for example SEGMENTATION unintended consequences e-fuels and Power to Liquid on the supply chain may (PtL), which are carbon have significant impacts on the neutral and can utilise existing ability of the sector to meet this infrastructure (and vehicles). predicted demand.

The TSA has in the past stressed that All industrial facilities are subject consideration must be given to these to continuous maintenance and alternatives as part of an overall solution, improvement to ensure that they are as they may have less impact on the efficient, meet the demands of their environment, economy and required customers and are compliant with investment within the supply chain as relevant legislation and standards. part of the overall strategy.

Financial performance is measured “In the longterm there are possible against the returns that those big adaptations to carry e-fuels and investments make, which ultimately environmentally sound fuels,” noted Paul. determines viability. Without careful “you can imagine the cost of developing consideration and planning regarding oil terminals is a major investment and the impacts of decarbonisation, assets they depreciate over a period of 20 that are required to meet current and to 40 years. So, if you have some 20 near-term demand may no longer years before there’s a big downturn be viable for owners and investors – in requirement for liquid fuels, that is impacting on energy security, as well as likely to make investors question their those businesses that rely on the import decisions. and export of bulk liquids in the chemical, “However, the viability of e-fuels is agricultural and food markets. quite interesting because they do require liquid fuels and these liquid fuels are Alternative fuels carbon neutral.”

One of the fundamental policies in the Continued on page 26 UK government’s Road to Zero strategy is Continuing to take a technology neutral approach to meeting our ambitions.

However, the strategy predominantly focuses on electrification and subsidies that will be made available.

“The UK government’s sweeping statement that it wants to become

“LNG is slow on the uptake as well. We are not seeing a massive demand for it, and even though it is being pushed by governments, there’s no big increase in energy storage or facilities for vessels.”

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Flying the flag 5 strategically located countries in Northern Europe 16 terminals 4.3 million cubic metres of storage 85+ years of experience 1st choice in bulk liquid and gas storage Inter Terminals Ltd +44 (0)1737 778108 Info@InterTerminals.com | www.InterTerminals.com Inter Terminals is owned by Inter Pipeline Ltd. www.interpipeline.com

26 S TO R AG E T E R M I N A L S

He explained that as the infrastructure to support e-fuels is already in place, while the cost of installing an electric charging infrastructure to satisfy millions of drivers across the country would be enormous and currently doesn’t exist on such a large scale.

Brexit The TSA has stressed the need for trade to continue unhindered, without additional financial burdens. Companies across different industry sectors have expressed concern that failure to do so could have a major impact on logistical supply chains and have a severe effect on the economy and future investment decision.

Some UK storage companies could be effected following Brexit due to Compulsory Stocking Obligations, an EU directive that places an obligation on member states to maintain minimum stocks of crude oil and/or petroleum products.

“Some TSA companies hold stocks for other EU territories to assist these other territories in meeting their obligation. For example, the Republic of Ireland rely on storage operations in Northern Ireland for storing it’s compulsory stock,” explained Paul. “Following Brexit, it may no longer be possible for EU states to rely on storage options outside of the EU, so that can have a potential impact for companies in the UK that rely on this business, which is

AUTUMN EDITION 2018

of course a major concern for some of our more efficient but currently all hands members.” are tied until the government makes a Many major employers have definitive deal with the EU.” expressed concerns over the UK Another aspect of Brexit that has government’s lack of information clarity created some concerns among industry is with regards to the plans for customs the treatment of land borders. “Some of our checks following the exit from the UK. member companies carry out trade “Brexit is going to affect activities between the Republic of our industry. The main concern Ireland and Northern Ireland so is how the HMRC is going to the free movement of goods TREATMENT operate once we leave the across the border could be OF LAND customs union,” explained impacted. However, once BORDERS Paul. Should the UK lose access again we are all waiting on the to the single market through government to make a decision the Excise Movement and Control on how borders are treated.”

System (EMCS), all imports from outside Furthermore, there are several the UK would need to be processed TSA companies that have operations using alternative approaches. Processing headquartered in the wider EU community customs declarations is complicated and and leaving the EU could impact the free importing is likely to take longer and cost movement of workers the UK currently more. enjoys. A question on many lips is whether Paul noted that use of the HMRC’s Brexit could hamper their abilities to CHIEF (Customs Handling of Import and transfer workers in international operations Export Freight) system should be limited or whether it could have an impact on as it is likely to struggle with the increased their ability to provide specialised staff for volume of transactions carried out by the specific projects or tasks. existing EMCS. “We are all waiting on tenterhooks He said the TSA is working closely to see what is going to come out of the with the Department for Business, Energy Brexit deal. Now we have a matter of & Industrial Strategy (BEIS) and the HMRC months, it’s not like we have two or three on how to ensure the CHIEF system years to prepare - that time has now gone,” doesn’t get clogged as the system not said Paul. only handles liquid fuels, but all other imports into the UK. For more information visit “We are trying to make process www.tankstorage.org.uk

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