Tank Storage Magazine April/May 2017

The voice of the storage terminal industry

APRIL/MAY 17 Volume 13 Issue No.2

A MIDDLE EASTERN FIRST

With capacity to store crude oil, Vopak Horizon Fujairah is now one of the largest independent oil terminals in the world

A GATEWAY TO GLOBAL BUSINESS The Hamriyah Free Zone boasts a flourishing investment climate for tank terminal operators and is a crucial gateway for global trade

REGIONAL FOCUS: MIDDLE EAST

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CONTENTS

Contents

25

News TERMINAL NEWS 09

The Americas

12

Africa & Middle East

15 Europe 18 Asia 19

Incident report

32 Storage in the Middle East 20

Tank terminal update: Middle East

22

It is all about location

25

A Middle Eastern first

32 A gateway to global business

Market analysis 29

Securing safety excellence in storage

35 Storage: a rapid growth story APRIL/MAY 17 VOLUME 13 ISSUE NO.2

01

CONTENTS

Contents

64

70

Technical features 37

Technical news

43 Ethanol is not petrol – test results raise fire safety issues 46

Oil logistics: the highest level of data exchange fidelity

48 Tank degassing and cleaning with encapsulator agents 51 Integrated terminal automation solution facilitates remote depot management 55

Risk management or risk blindness

58

Avoiding costly pitfalls of floating roof seals

61

Detecting the leak and reducing the costs

78

64 Staying ahead with digitalisation in tank storage 67 Protecting a storage terminal’s most valuable asset

Events 70

Middle Eastern dreams

78

Starting the year with a bang

67 02

A preview of some of the exhibitors at their year’s StocExpo Middle East Africa at the Dubai World Trade Centre

80 Upcoming events 81

Advertisers’ index

APRIL/MAY 17 VOLUME 13 ISSUE NO.2

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03

CONTRIBUTORS

Contributors APRIL/MAY 17 Volume 13 Issue No.2

The voice of the storage terminal industry

APRIL/MAY 17 Volume 13 Issue No.2

A MIDDLE EASTERN FIRST

With capacity to store crude oil, Vopak Horizon Fujairah is now one of the largest independent oil terminals in the world

A GATEWAY TO GLOBAL BUSINESS The Hamriyah Free Zone boasts a flourishing investment climate for tank terminal operators and is a crucial gateway for global trade

REGIONAL FOCUS: MIDDLE EAST

TSM_Front_cover_TSM_april-may_2017.indd 2

22/03/2017 17:06

Front cover courtesy of CST Covers

PUBLISHER Margaret Dunn t: +44 (0)20 3551 5721 e: margaret@tankstoragemag.com

ONLINE & CONTENT EDITOR Jasmin McDermott t: +44 (0)20 3196 4402 e: jasmin@tankstoragemag.com

INTERNATIONAL SALES MANAGER David Kelly t: +44 (0)20 3196 4401 e: david@tankstoragemag.com

PORTFOLIO MARKETING MANAGER Amy Jordan t: +44 (0)20 3196 4390 e: amy@tankstoragemag.com

DATABASE MANAGER Jourdan Roze t: +44 (0)20 3196 4342 e: jourdan.roze@easyfairs.com

SUBSCRIPTION MANAGER Henry Kenyon t: +44 (0)20 3196 4343 e: Henry.Kenyon@easyfairs.com

MANAGING DIRECTOR Matt Benyon t: +44 (0)20 3196 4310 e: matt.benyon@easyfairs.com

CONTACT

SUBSCRIPTION RATES

t: +44 (0)20 3196 4300 f: +44 (0) 20 8892 1929 e: info@tankstoragemag.com w: www.tankstoragemag.com

A one-year, 6-issue subscription costs €210. Individual

Easyfairs 2nd Floor, Regal House 70 London Road Twickenham TW1 3QS United Kingdom

CONNECT WITH US

ISSN 1750-841X

back issues can be purchased at a cost of €45 each.

@tankstorageinfo Tank Storage Magazine Tank Storage Magazine

Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2017 US Institutional subscription prices is $243. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434.

Periodical postage pending at Jamaica NY 11431. Subscription records are maintained at Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.

04

Part of

APRIL/MAY 17 VOLUME 13 ISSUE NO.2

CONTRIBUTORS

APRIL/MAY 17 VOLUME 13 ISSUE NO.2

05

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COMMENT

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Visit us at NISTM Conference and APRIL/MAY 17 VOLUME 13 ISSUE NO.2 Trade Show Booth 717 in Orlando.

COMMENT

A tale of hope

L

et me tell you a story. It is one set against a volatile landscape and comes with its fair share of unpredictable twists and turns that not even the main characters can see coming.

It is set in a world that is oversupplied with oil products in a market that has management economics imposed on it following a free market period. In this ‘leaner and fitter’ industry, the role of storage is key. And this is a story with a lot of hope for the storage sector as demand for capacity is set to grow exponentially over the next five years.

According to the IEA’s Market Report Series: Oil 2017, 226 million barrels of capacity is under construction or part of an expansion project globally, which equates to 2.3 additional days of global construction. Unsurprisingly, the regions which will experience the most amount of growth are situated around key storage regions. Asia Oceania ranked first, thanks to the likes of China, Malaysia as well as South Korea and Australia. North America and the Middle East rank second and third respectively for capacity building.

In the Middle East, while Saudi Arabia has the largest crude oil storage capacity in the region, it is actually the UAE that holds the greatest amount of promise for future capacity additions. Almost all of the 17 million barrels of capacity that is under construction or expansion is located here and it is not hard to see why thanks to Fujairah establishing itself as the largest

APRIL/MAY 17 VOLUME 13 ISSUE NO.2

bunkering centre in the region.

The Middle East is clearly a region of great interest when it comes to the oil markets – oil supply is strongest here thanks to expansion in Iran and Iraq as well as continued output from other parts of the region.

Within this issue we explore storage operations in this dynamic region.

Following the completion of its 7th expansion project, we speak to Vopak Horizon Fujairah about its role in laying foundations for Fujairah to cement its positions as a trading hub for crude in the Gulf region.

Elsewhere in the UAE, the Hamriyah Free Zone offers an attractive environment for tank terminal investments. In an exclusive interview, we speak to Hamriyah Free Zone Authority’s director about how the second largest petrochemical, oil and gas hub in the UAE will increase its land availability to 30 square kilometers.

This edition of the magazine will be travelling far and wide once again, reflecting the variety of diverse events in the industry. Not only is this magazine the official publication for StocExpo Middle East Africa in Dubai, it is also the official publication for the NISTM show in Florida and the FPS Expo in Liverpool. The Tank Storage Magazine team will also be in attendance, so we look forward to seeing you at one of these events.

With best wishes, Jasmin

07

TERMINAL NEWS l CONTENTS

Terminal news All the latest terminal storage news from around the globe

16 Vitol acquires largest fuel storage business in Turkey

11 Odfjell progresses with Houston ethylene export terminal

12 Vopak expands storage activities in South Africa

The Americas

EUROPE

09 Marathon drops down storage tank and pipeline assets

15 Vopak focuses investments in capacity growth and new technology

Enbridge and Spectra Energy complete merger

Howard Midstream to significantly expand Texas storage terminal

Murphy Oil fined for 2015 pipeline leak

16 VTTI announces plans to buy out VTTI Energy Partners

10 Plains and Noble enter Delaware Basin pipeline joint venture

Martin Midstream acquires Texas asphalt terminal

Vitol acquires largest fuel storage business in Turkey

17 Odfjell progresses with Howard ethylene export terminal

11 Odfjell progresses with Howard ethylene export terminal

Asia Africa & Middle East

18 South Korean terminal launched open tender on tanks

ADNOC to invest in Mangalore storage facility

12 Saudi Aramco’s Jazan refinery and terminal project progresses

Vopak expands storage activities in South Africa

ENOC reports record petroleum products sales

13 Saudi Aramco invests in Petronas’ RAPID complex

Saudi Aramco retains terminal assets from Motiva Enterprise

For the latest news and developments visit www.tankstoragemag.com 08

APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

TERMINAL NEWS l THE AMERICAS

Marathon drops down storage tank and pipeline assets

Enbridge and Spectra Energy complete merger

Marathon Petroleum has contributed various terminal, pipeline and storage assets to MPLX for more than $2 billion.

Enbridge and Spectra Energy have completed the previously announced merger of both companies.

The assets include 62 light-product terminals with 24 million barrels of storage capacity, 11 pipeline systems consisting of 604 miles of pipeline, 73 tanks with 7.8 million barrels of storage capacity, a crude oil truck unloading facility at Marathon’s refinery in Ohio and eight natural gas liquids storage caverns in Michigan.

The total consideration equates to an eight times multiple of the $250 million of earnings before interest, taxes, depreciation and amortisation these business are expected to generate in the next 12 months.

Marathon Petroleum chairman, president and CEO Gary Heminger says: ‘This drop-down of additional high-quality assets to MPLX represents the first of several drops expected to occur in 2017, and is an important part of our plan to unlock the value of our midstream business for investors.’

Trading in shares of Spectra Energy common stock on the New York Stock Exchange were suspended on February 28. The shares of common stock of Spectra Energy were delisted from the NYSE and were de-registered under the US Securities Exchange Act of 1934.

Al Monaco, president and CEO of Enbridge, said: ‘With the completion of the transaction, Enbridge will become a leading global energy infrastructure company and the largest in North America with roughly $126 billion in enterprise value and the strongest liquids and natural gas infrastructure franchises on the continent.

‘The combined company will be positioned to provide integrated services and first and last mile connectivity to virtually all key liquids and gas supply basins and demand markets in North America.’

Howard Midstream to significantly expand Texas storage terminal Howard Midstream Energy Partners plans to significantly expand its bulk liquids storage facility in Texas following a long-term terminal services agreement.

Under the agreement with a third party shipper, Howard Midstream will construct more than 15 new tanks, adding more than one million barrels of storage for a variety of products. It will also construct new marine facilities for both blue water and inland marine vessels.

The company also plans to construct a pipeline system to transport products between its Port Arthur facilities and other third-party supply points.

Final engineering of the Port Arthur terminal, which started in the first quarter of 2016, and pipelines is underway and construction was due to begin in March.

The facility is expected to take 18 months to construct and operations are due to begin in 2018. If warranted by future demand, the terminal

can be expanded to include up to 24 million barrels of storage, and multiple blue water and inland marine docks.

Senior vice president of terminals and transportation, Mark Helmke, says: ‘Howard Midstream Energy’s Port Arthur facility is uniquely positioned to provide an efficient solution for shippers seeking alternatives to Houston facilities that continue to experience high volumes of marine traffic and subsequent demurrage.

‘Our proximity to over 1.4 million barrels of local refining capacity and significant refined product pipeline infrastructure, such as Explorer Pipeline and Colonial Pipeline, make this terminal a logical clearinghouse for refined product.’

Murphy Oil fined for 2015 pipeline leak The Alberta Energy Regulator has issued Murphy Oil with a fine following a condensate spill from its pipeline in 2015.

The spill at Murphy’s Seal Field in North Central Alberta went undetected from January 15 to March 1, 2015, and released 1,429 m3 of condensate into the surrounding environment. Murphy has since repaired the pipeline and it continues to remediate the impacted area.

The investigation by the regulator found that Murphy failed to take reasonable steps to ensure the leak detection system was capable of early detection of leaks, failed to evaluate operating or discontinued pipelines and failed to report the spill. It also found that the company failed to conduct remedial actions on the condensate that was released, which caused damage to public lands.

APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

The regulator said that Murphy was found to have breached requirements in provincial legislation and, due to the severity of the incident, issued the company with a CAD 172,500 fine.

Murphy Oil says in a statement: ‘Murphy will continue to fully cooperate with respect to this matter and will continue to ensure that the impacted area is reclaimed.

‘Murphy is committed to conducting business in a manner that respects the environment as well as the health, safety and security of its employees, customers, contractors and the communities where we operate.’

09

TERMINAL NEWS l THE AMERICAS

Plains and Noble enter Delaware Basin pipeline joint venture

Martin Midstream acquires Texas asphalt terminal

Noble Midstream Partners and Plains All American Pipeline have formed a 50/50 joint venture to acquire Advantage Pipeline’s Delaware Basin pipeline assets.

Martin Midstream Partners has acquired the Texas asphalt terminal from Martin Resource Management.

The joint venture will acquire Advantage for $133 million. The pipeline assets have a capacity of 150,000 barrels per day originating in eastern Reeves County, Texas running through Pecos and Ward Counties, to Crane County, Texas. It also includes 490,000 barrels of combined crude storage at three separate trucking stations.

Noble will serve as an operator and will construct a 15-mile pipeline to deliver crude oil to the Advantage Pipeline from its central gathering facility in the southern Delaware Basin. Plains will construct a pipeline to connect its Wolfbone Ranch facility to the Advantage Pipeline.

These connections are estimated to be completed in the second quarter of 2017.

Greg Armstrong, chairman and CEO of Plains, says: ‘The Advantage Pipeline provides area producers with more efficient access to multiple markets through interconnections with Plains’ Permian Basin system.’

The Hondo facility was bought for $27.4 million. In its fourth quarter financial results, Martin Midstream says it will spend $8.6 million to complete construction. It will be supported by long-term contractual agreements with Martin Resource Management.

Elsewhere, in its terminalling and storage segment, the company’s Smackover refinery exceeded cash flow forecast in 2016 primarily as a result of increased tolling and reservation fees. However, it experienced weaker margins in our lubricants platform throughout most of 2016, which was partially offset by the strengths in its grease business.

Ruben Martin, president and CEO, says: ‘The partnership made a strategic decision in the second half of the year to divest the Corpus Christi terminal assets as throughput at the facility continued to decline commensurate with Eagle Ford crude oil production. In addition to successfully closing the divestiture, we also saw the positive impact of working capital reductions during the quarter in our natural gas liquids business.’

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APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

TERMINAL NEWS l THE AMERICAS

Odfjell progresses with Houston ethylene export terminal

The basic engineering contract has been awarded for the possible development of an ethylene export terminal at Odfjell Terminals’ facility in Seabrook, Texas.

With this award to JGC America, Odfjell Terminals enters into the last phase of engineering before the final investment decision.

The development follows the announcement of several new ethane crackers as a result of the shale gas revolution, which provides US crackers a significant feedstock advantage compared to crackers in Europe and Asia.

Currently, there are no efficient export facilities for ethylene in the US. According to Odfjell, the terminal will allow producers, consumers and traders to export ethylene to other parts of the world. The terminal in Seabrook is ideally located nearby all major ethylene pipeline corridors. It also has land available for expansion with marine infrastructure.

Frank Erkelens, CEO of Odfjell Terminals, says: ‘We strongly believe that Odfjell Terminals’ ethylene facility can open global markets for ethylene produced in the US. It will provide producers, traders and consumers the opportunity to take advantage of the competitive cost price of

US produced ethylene. Our terminal in Seabrook is in an excellent location at the entrance of the Houston Ship Channel, and allows unrestricted access for ethylene carriers to our dedicated ship dock.’

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APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

11

TERMINAL NEWS l AFRICA & MIDDLE EAST

Saudi Aramco’s Jazan refinery and terminal project progresses Construction is progressing at Saudi Aramco’s Jazan Economic City refinery and terminal projects.

The projects are set to transform the region and further boost Saudi Aramco’s portfolio of mega-projects designed to fuel a diversified economy for Saudi Arabia’s future.

Construction at the refinery complex is now 70% complete.

Saudi Aramco management toured the under-construction port. The site consists of a wide range of complex engineering and construction packages that will integrate to reach a processing capacity of more than 400,000 barrels per day of crude oil.

The refinery complex will also be equipped with a port and power plant to make the refinery entirely self-sufficient.

Vopak expands storage activities in South Africa A new 100,000 m3 terminal will be built in Johannesburg following an investment by Vopak and its partner Reatile.

The new facility in Lesedi, in the Gauteng province will be connected to Vopak Terminal Durban via the Transnet multi product pipeline. It will consist of six tanks, eight truck loading bays with vapour recovery system and a pipeline connected to the state-owned new multi-product pipeline (NMPP) for refined petroleum products.

The NMPP runs from the Port of Durban to Gauteng where currently around 70% of South Africa’s fuel demand is concentrated. The pipeline reduces the need for road transportation.

Vopak Terminal Durban and Vopak Terminal Lesedi will be the first major open access to independent tank terminals connected to the NMPP, connecting the Port of Durban with the Gauteng province.

In addition, Vopak is also investing in an expansion of its Durban facility with an extra 130,000 m3. It will comprise 10 new tanks with a total capacity of 162,000 m3 as well as the demolition of 38 older small tanks. Investments will also be made in three additional truck loading bays connected to the existing vapour recovery system, additional berth pipelines and a new marine loading arm. Once complete the total capacity of the facility will amount to 371,926 m3.

ENOC reports record petroleum products sales

ENOC has recorded record sales of petroleum products as it focuses on growing its upstream and downstream operations to serve Dubai’s growing energy needs.

The company recorded volumes of 245 million barrels, reflecting a five year rolling growth of 9%, despite the challenging macroeconomic situation.

As part of its five-year strategy, the national oil company will focus its investment on fulfilling Dubai’s energy needs by expanding its refinery and service station network, building storage capacity and increasing its market share in the marketing of diesel, jet fuel and LPG. It plans to increase capacity by 50% at its Jebel Ali refinery to reach 210,000 barrels per day, as well as the constriction of Project Falcon’s 19km jet fuel pipeline extension to Al Maktoum Airport by the end of 2018.

The company has also acquired Dragon Oil as an upstream segment to its operations.

His Excellency Saeed Al Tayer, ENOC’s vice chairmain, says: ‘As the UAE economy grows, the demand for energy is expected to grow gradually. Therefore, it is crucial that national oil companies focus on investing in projects that contribute to the UAE’s global energy leadership and commitment to green and sustainable growth while ensuring its energy security.’

12

APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

TERMINAL NEWS l AFRICA & MIDDLE EAST

Saudi Aramco invests in Petronas’ RAPID complex

Saudi Aramco plans to invest $7 billion for an ownership stake in Petronas’ refinery and petrochemical complex with the Pengerang Integrated Complex (PIC) development.

Amin H. Nasser, president and CEO of Saudi Aramco and Datuk Wan Zulkiflee Wan Ariffin, president and group CEO of Petronas signed the share purchase agreement. Once complete, both companies will have equal ownership in the RAPID project in Johor.

Under the agreement, Saudi Aramco will supply most of the crude feedstock requirements of the refinery, with natural gas, power and other utilities supplied by Petronas.

Saudi Aramco’s CEO Nasser says: ‘Together with Malaysia, the southeast Asia region offers tremendous growth opportunities and today’s agreement further strengthens Saudi Aramco’s position as the leading supplier of petroleum feedstock to Malaysia and southeast Asia, and with RAPID’s strategic location in a prolific hub, it would also serve to enhance energy security in the Asia-Pacific region.’

Once constructed, the refinery will have the capacity to refine 30,000 barrels of crude per day and will produce a host of refined petroleum products, including petrol and diesel which meets Euro 5 fuel specifications.

The PIC is almost 60% complete and is on track for refinery start-up in

2019. In addition to the RAPID complex, which comprises the refinery, cracker and downstream petrochemical complex, the PIC also includes a co-generation plant, an LNG re-gasification terminal as well as a deep-water terminal.

Saudi Aramco retains terminal assets from Motiva Enterprise Saudi Aramco and Shell have finalised have finalised the separation and transfer of the Motiva Enterprise joint venture assets.

Under the terms of the agreement, the assets that will be retained by Saudi Aramco’s subsidiary Saudi Refining include: • The Motiva Enterprises name, which will be used to continue operations as a Texasbased refiner, distributor and marketer of petrol, diesel and other petroleum products • 24 distribution terminals with a total storage capacity of 11.1 million barrels. They support delivery to 5,300 Shell service stations

as well as unbranded wholesalers and are used as product storage for third-party customers • A 600,000 barrel per day refinery at Port Arthur, which also includes a 40,000 barrel per day base oil manufacturing plant Amin Nasser, president and CEO of Saudi Aramco, says: ‘We fully support Motiva’s transition to a stand-alone integrated downstream provider of energy and with its strategic

position, I am confident it will enable new opportunities for growth in the US energy sector.

‘Saudi Aramco will provide Motiva with the strong financial support and necessary liquidity needed to maintain an investment grade credit rating and capitalise on growth and expansion opportunities to help the company become a highly competitive major downstream player in the US.’

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TERMINAL NEWS l EUROPE

Vopak focuses investments in capacity growth and new technology Vopak plans to invest in disciplined capacity growth, technology and the replacement of IT systems.

In its 2016 financial results, the company reported that its EBITDA increased by 1% to €822 million and that its global capacity increased by 400,000 m3 to 34.7 million m3 compared to year-end 2015, despite the completed divestments of its UK assets and the Japan terminals.

It improved its EBITDA from €763 million to €822 million in the 2014 to 2016 period despite the missing contributions of the divested terminals. In addition to its South Africa announcement, Vopak is also developing new projects in Panama and Houston. It also aims to expand its business through regasification assets following the Exmar transaction.

Eelco Hoekstra, chairman of the executive board and CEO, says: ‘We see clear growth opportunities resulting from the global demand for plastics, chemicals, food and agricultural prod-

ucts, as well as an increasing demand for energy, particularly in non-OECD countries.

‘We will continue directing our business development efforts even more on chemical (industrial) terminals and gas markets, through regasification assets, while pursuing oil related opportunities in emerging markets. Regions of specific interest for growth include the Americas, Middle East and Asia.

As part of its strategic direction to 2019, the company plans to spend €750 million on sustaining and service improvement capex for the period 2017-2019. It also plans to reduce its cost base by driving further productivity through organisational and operational efficiency with €25 million by 2019.

Additionally, it will invest €100 million in the period 2017-2019 in new technology and

innovation programmes as well as replacing its IT systems.

Hoekstra says he is confident that Vopak will achieve an average occupancy rate of at least 90% for 2017. He adds: ‘During the period 2017-2019, Vopak anticipates volatility in energy, commodity, financial markets and unpredictable geopolitical developments. Notwithstanding inherent short-term effects, Vopak believes it will be able to continue its long-term growth journey and positive EPS development while maintaining a cash flow return on gross assets after tax between 9% and 11%.

‘With a solid foundation we are overall well-positioned to successfully set out in our strategic direction for the period 2017-2019 towards disciplined capacity growth and productivity improvements.’

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TERMINAL NEWS l EUROPE

VTTI announces plans to buy out VTTI Energy Partners

Vitol acquires largest fuel storage business in Turkey

VTTI has announced plans to buy out its general partner VTTI Energy Partners as a result of its shares trading below expectations.

Vitol’s operating arm in Turkey has acquired OMV Petrol Ofisi Holding for €1,368 million.

It plans to acquire all publically held common units in exchange for $18.75 per common unit. The transaction is to be effected through a merger of the partnership with a wholly owned subsidiary of VTTI. VTTI says that despite two drop down transactions and six distribution increases since mid-2015, VTTI Energy Partners’ common units have performed below VTTI’s expectations even amidst recent improvement in commodity prices and investor sentiment in the broader market.

It adds: ‘Given the trading levels of the Partnership’s common units, the resulting increased cost of capital and the liquidity challenges associated with the Partnership’s relatively small public float and other factors, VTTI does not intend to execute any further dropdowns to the partnership of additional assets or equity interests in VTTI, the holding company for the Partnership’s operating subsidiaries.’

VIP Turkey Enerji, a subsidiary of Vitol Investment Partnership, has acquired the assets from OMV. Petrol Ofisi is the market leader in fuel products and distribution in Turkey, with a market share of 23%.

Its assets comprise the largest retail station network of over 1,700 service stations and the largest fuel storage and logistics business in Turkey, with total storage capacity in excess of one million m3.

Ian Taylor, Vitol’s president and CEO, says: ‘This is a strong business in a growing market. Its market leading brand has benefitted from OMV’s focus on high standards of HSSE. We are committed to maintaining this excellent track record and greatly look forward to working with the Petrol Ofisi team to capitalise on Turkey’s strong economic performance and growing demand for energy products.’

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L a r g e S i z e A P I 6 0 0 G a t e Va l v e Size: 2" ~ 60" Rating: Class 150 ~ Class 2500 Body Materials: WCB / LCB / WC6 / WC9 / CF8 / CF8M End Connection: RF / RTJ / BW Operation: Handwheel , Gear , Motor , Pneumatic Type of Construction: Wedge

L a r g e S i z e A P I 6 D B a l l Va l v e Size: Rating: Body Materials: End Connection: Operation:

2" ~ 60" Class 150 ~ Class 2500 Forged Carbon Steel , Stainless Steel RF / RTJ / BW Lever , Gear , Motor , Pneumatic , Gas over oil operator

Rubber Lined API609 Butterfly Valve Size: 2" ~ 72" Rating: Class 125 ~ Class 150 Body Materials: Carbon Steel , Stainless Steel End Connection: Wafer , Lug , Double Flange Operation: Lever , Gear , Motor , Pneumatic

Support and service As one of the leading valve manufacturers in the world, Neway employs the state of art manufacturing facility that specializes in the development of superior and innovative products through our intensive R&D programs. Our commitment to engineering excellence enables Neway to provide customized flow control solutions to meet tank farm industry needs.

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Neway Flow Control DMCC Office 3606, JBC1, Cluster G, Jumeirah Lake Towers, PO Box 214954, Dubai-U.A.E. Tel: + 971 4 4562947 Fax: + 971 4 4563063 E-mail: neway.ae@newayvalve.com

Size:185mm x 135mm

Neway Valve (Suzhou) Co., Ltd.

No.666 Taishan Road,New District, Suzhou, P.R. China Tel: + 86 - 512 - 666 - 51365 Fax: + 86 - 512 - 666 - 51360 E-mail: overseas.sales@neway.com.cn

APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

TERMINAL NEWS l EUROPE

Throughput down at Port of Rotterdam

Vopak to expand berth capacity at Amsterdam terminal

Crude oil throughput at the Port of Rotterdam fell in 2016.

Throughput of crude fell by 1.2% to 101.9 million tonnes following a rise of 18% in 2015. Although refinery margins fell slightly, they remained buoyant where the level of crude oil input stayed at the upper end of the historical spectrum.

There was less fuel oil but more gas oil, diesel, kerosene, petrol and naphtha was handled.

Throughput of LNG dropped by 26.1% to 1.7 million tonnes following an increase of over 90% in 2015.

The port says the reason for this is that in 2016 the global market saw less arbitrage relating to LNG prices.

The other liquid bulk category rose by 1.5% to 31.2 million tonnes.

The port authority expects throughput volume in 2017 to remain at a comparable level to that of 2016.

Vopak and the Port of Amsterdam plan to invest in additional vessel handling infrastructure with jetty and berth expansions.

One jetty will be extended at Vopak Terminal Amsterdam Westpoort, with one berth for seagoing vessels. There will also be a new quay wall with two berths for barges, bring the total number of berths to four for seagoing vessels and 10 for barges by the end of 2018.

Pumping capacity at the terminal will also be increased.

Ramon Ernst, managing director Vopak Terminal Amsterdam Westpoort, says: ‘The high throughput volumes at our terminal can occasionally result in queues for vessels and barges. This investment will increase the vessel handling capabilities at our terminal and thereby – together with the new sea lock – improve the overall service and efficiency in the Port of Amsterdam.’

The new infrastructure will be highly automated and fully connected to the vapour recovery unit.

M IDSTREA M E XPE RTI SE

CONCEPT

ENGINEERING Houston, TX B.J. Bridges bridgesb@pondco.com 832.42CRUDE

INSPECTION

Atlanta, GA (HQ) Todd M Eldridge eldridget@pondco.com 404.748.4866

Atlanta, GA | Augusta, GA | Charleston, SC | Colorado Springs, CO | Columbia, SC | Ft. Worth, TX | Honolulu, HI | Houston, TX | Pasadena, TX | Huntsville, AL | Jacksonville, FL | Mobile, AL | New Orleans, LA | Virginia Beach, VA | Phoenix, AZ | San Antonio, TX | St. Louis, MO | Tampa, FL | Saint John, Canada | Sasebo, Japan | Rota, Spain

www.pondco.com

APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

17

TERMINAL NEWS l ASIA

South Korean terminal launched open tender on tanks

ADNOC to invest in Mangalore storage facility

As a result of growing demand in the petroleum tank market, a number of oil players are experiencing a shortage of oil storage and are seeking tank availability.

OKYC, one of the largest oil tank terminals in South Korea, has 8.2 million barrels of crude oil and petroleum storage capacity. It also has four jetties that can berth from barges to VLCC. The company says that as the current lease contact of the tanks is expected to expire by the end of April, the new successful bidder could get the service from the beginning of May. The total capacity of five offered tanks is 70,000 m3 and can store middle distillate and light distillate products.

The tendering process was conducted as an open tender.

The agreement between Indian Strategic Petroleum Reserve (ISPRL) and ADNOC allows ADNOC to fill up 5.86 million barrels of crude oil at ISPRL’s storage facility at Mangalore, Karnataka.

Some of the stored crude will be used for commercial purposes by ADNOC while a significant part will be for strategic use.

A statement issued by the Government of India says that the agreement increases India’s energy security.

The statement says: ‘The investment by ADNOC is a major investment from UAE under the high level task force on investment and the first investment by UAE in India in the energy sector.’

Oilhub Korea Yeosu (OKYC) offered an open tender for the use of its storage tanks.

India’s Prime Minister Shri Narendra Modi has approved an agreement that involves ADNOC utilising capacity at one of its strategic petroleum reserve storage facilities.

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18

Multi-streams modular flow computer

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APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

INCIDENT REPORT

Incident report

A summary of the recent explosions, fires and leaks in the tank storage industry 5/3/2017

Rio Blanco County, Colorado, US Chevron Corp.

A failed pipeline spilled 4,800 gallons of oil into a tributary of Stinking Water Creek. The failed pipeline was discovered by a Cheveron consultant. Crews worked quickly to clean up the spill and the Colorado Department of Natural Resources said that the section of pipeline that failed is being analysed to determine a cause.

23/2/2017

15/3/2017

Guanajuato, Mexico Pemex

At least eight people were injured following an explosion at Pemex’s fuel storage and distribution facility near its Salamanca refinery. The explosion at the facility, which supplies petrol to regional buyers, happened as workers were filling a tanker truck with fuel in a part of the facility away from storage facilities. The company said in a statement that there were no deaths or severe damages at the facility and the fire was quickly extinguished.

APRIL/MAY 2017 VOLUME 13 ISSUE NO.2

Marilao, Bulacan, Philippines

RMS Petroleum Technology and Waste Management Corp.

A fire broke out at a bunker fuel storage facility in Marilao town. Firefighters, including teams from various Bulacan towns, fought to keep the blaze away from three other nearby oil facilities. The blaze was extinguished within an hour and no one was injured in the incident.

An investigation is seeking to establish the cause of the fire.

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