Tank Storage Magazine December-January 2020

DECEMBER 19/JANUARY 20 Volume 15 Issue No.6

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A unique insight into how to overcome the five distinct stages

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MANAGING PROJECT GRIEF

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Read exclusive insights from HES, LBC, Prostar, Tepsa, Topsafe, & Varo

AN INNOVATION PIONEER

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2020 OUTLOOK

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CONTENTS

Contents

32 News TERMINAL NEWS 09 Asia 12

The Americas

18 Europe 23

Tank Storage Awards

24

Africa & Middle East

27

Incident report

28

Tank terminal update: Africa

Profile 32

CLH: A storage pioneer

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Market analysis 34

Oil price showing remarkable resilience

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A long road ahead

38 A tipping point: what does climate action look like?

40 The European green deal: changing the storage industry

Storage Outlook 45

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

Six global storage operators reflect on developments from 2019 and exclusively share their thoughts on what 2020 could have in store for their company and the industry‌

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CONTENTS

Contents

78

Technical features 52

Technical news

56 Simulation software: prevention with precision 60 Managing the five stages of project grief 62

Why it pays to line the inside of a storage tank

65

Managing the entire construction lifecycle

68 Inventory optimisation software improves decision-making process 70

Floating roof seals: a technical analysis of sealing systems

74 Tank cleaning innovation utilises advances in submerged jet mixing technology 78

New app solution digitally transforms operations

Events 92

80 Preventing the dark data creep 82 Advanced data analysis: increasing the bottom line 84 Bund lining made simple 86 Achieving the industrial internet of things potential 88 Four strategies to a stronger data foundation 90 The digital future of the downstream supply chain

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Human vs machine – have we entered the 4th industrial revolution

94 New opportunities for Mediterranean hubs 96 Advertisers’ index 97

Upcoming events

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DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

CONTENTS

HES INTERNATIONAL

Holding the bulk of the world

HES WILHELMSHAVEN TANK TERMINAL Storage capacity 1,3 million m3 Wilhelmshaven, Germany

HES BOTLEK TANK TERMINAL Storage capacity 510,000 m3 Rotterdam, The Netherlands

HES BOTLEK TANK TERMINAL - BITUMEN Storage capacity 31,500 m3

HES GDYNIA BULK TERMINAL Only direct transshipment Port of Gdynia, Poland

HES HARTEL TANK TERMINAL (project) Storage capacity 1,3 million m3

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

Rotterdam, The Netherlands

Rotterdam, The Netherlands

WWW.HESINTERNATIONAL.EU

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CONTRIBUTORS

Contributors

DECEMBER 19/JANUARY 20 Volume 15 Issue No.6

2020 OUTLOOK

Read exclusive insights from HES, LBC, Prostar, Tepsa, Topsafe, & Varo

AN INNOVATION PIONEER How CLH is transforming to improve sustainability, safety & efficiency

MANAGING PROJECT GRIEF A unique insight into how to overcome the five distinct stages

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SPECIAL FOCUS

INNOVATION

S TO T C EN HA ora ge m TE NC ag .co m R E

DECEMBER 19/JANUARY 20 Volume 15 Issue No.6

Front cover courtesy of Jotun

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

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

SUBSCRIPTIONS MANAGER Baron Bray-Sackey t: +44 (0)20 3196 4387 e: baron.braysackey@easyfairs.com

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MARKETING MANAGER Lisa Mattes t: +44 (0)20 3196 4394 e: lisa.mattes@easyfairs.com

CEO EASYFAIRS UK & GLOBAL Matt Benyon t: +44 (0)20 3196 4310 e: matt.benyon@easyfairs.com

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Tank Storage Magazine, (ISSN 1750-841X) is published seven times a year (in February, March, May, August, September, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The US annual subscription price is $243. Airfreight and mailing in the USA by agent named WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. Periodicals postage paid at Jamaica NY 11431. US Postmaster: Send address changes to Tank Storage Magazine, WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. 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.

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DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

CONTRIBUTORS

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COMMENT

The industry of the future

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he movement to transition the sector to a new energy future has certainly gained momentum this year. More so than ever before, the industry is looking beyond the short-term future and is more focused on shaping the sector for the long-term.

In Europe, for the first time in its history, the European Commission has set out a flagship policy to make the continent the first climate neutral continent by 2050. The historical European Green Deal has the potential to change business and investment strategies in a significant way and is a defining policy for the next 30 years. Tank storage will undoubtedly play a crucial role in this new deal as the world transitions to a carbon neutral future.

However, work on the industry of the future goes beyond implementing environmentally conscious measures. Across the entire global industry, storage operators are implementing projects to improve operations and processes, utilising Big Data, AI, cloud-based software and robotics to build a business that addresses future needs.

And workforce diversity in terms of gender, age and cultural representation is also a key component of the industry of the future. For example, currently the energy workforce consists only 15-18% of women. Writing for Tank Storage Magazine, Pink Petro’s CEO Katie Mehnert argues that all forms of people and energy are needed to power the planet and that the entire energy sector needs to be welcoming in more women, young people

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and more people from underrepresented communities.

This edition of Tank Storage Magazine has a dedicated focus on innovation. But this does not just mean product or digital innovation, it means innovation in new ways of working, of industry thinking, innovation in the face of new regulations (particularly IMO 2020) as well as innovation in workforce dynamics.

In an exclusive interview, Spanish-based storage & pipeline operator CLH reveals how it is transforming core processes and systems across its global network to ensure a sustainable business against a transitioning energy environment.

Six global storage operators share with us how they are shaping their business for the future and what 2020 could have in store for the industry in our annual Storage Outlook.

Tepsa, HES International, Prostar Capital, Topsafe, LBC Tank Terminals and Varo Energy exclusively share their plans for next year as well as reflect on events from 2019.

And we provide analysis on the events and developments that shaped the oil and gas industry in 2019 and what this means for the industry for the next year.

We look forward to working with many of you next year to make 2020 another year of success.

With best wishes and a prosperous new year,

Jasmin

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

COMMENT

Flying the flag 6 countries in northern Europe 23 strategically located terminals 5.8 million cubic metres of storage 85+ years of experience 1st choice in bulk liquid and gas storage Call us on +44 (0)1737 778108 | www.InterTerminals.com

Inter Terminals is owned by Inter Pipeline Ltd. www.interpipeline.com DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

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TERMINAL NEWS

All the latest terminal storage news from around the globe

20 European Investment Bank to stop funding fossil fuel projects

12 Harvest Midstream starts construction on storage terminal and pipeline

24 Saudi Aramco launches IPO

Asia

EUROPE

09 Australian Industrial Energy to increase LNG cargos at

Port Kembla terminal

18 European Commission approves â‚Ź130 million LNG terminal expansion

PV Gas starts construction on LNG terminal

HES Botlek completes biodiesel storage expansion

Zhonghua Gas & Shanghai Jiulian to form JV to explore LNG markets

Oiltanking Deutschland sells Deggendorf tank terminal

10 Companies form collaboration over chemical storage terminal

KNOC to complete underground storage by 2021

Reliance Industries to build $9.75 billion crude oil-to-chemicals complex

the americas 12 Rangeland Midstream starts pipeline construction

20 European Investment Bank to stop funding fossil fuel projects

CLH starts management of fuel storage facilities

Agreement reached for developing Cyprus LNG terminal

22 Vopak grows chemical storage capacity in Belgium, Mexico

& China

GPS opens expanded Amsterdam storage terminal

HES Hartel Tank Terminal project reaches milestone

TANK STORAGE AWARDS

Puma Energy sells Paraguay business to Impala Terminals

IFM Investors completes Buckeye acquisition

23 Five reasons to enter the Global Tank Storage Awards

Harvest Midstream starts construction on storage terminal and pipeline

Africa & middle east

13 Moda announces early delivery of storage capacity Starlight Relativity acquires refinery & storage assets

14 Kinder Morgan acquires natural gas pipeline

New North American midstream infrastructure company created

Vopak to build new US Gulf Coast storage terminal

Keyera to maintain ownership in Base Line Terminal

16 US FERC approves Texas LNG Brownsville export project

US close to achieving full energy independence

Valero signs agreements for three new refined product terminals

17 Enterprise & Enbridge agree to jointly develop deepwater terminal

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Energy Transfer completes acquisition of SemGroup

24 India to lease strategic storage to Saudi Aramco

Saudi Aramco launches IPO

Qatar Petroleum & Arabian Refinery launches new Egyptian refinery

New $40 million chemical storage terminal planned for Dubai

Visit www.tankstoragemag.com for the latest news and developments

CONNECT WITH US

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

TERMINAL NEWS l ASIA

TERMINAL NEWS ASIA

Australian Industrial Energy to increase LNG cargos at Port Kembla terminal Australian Industrial Energy (AIE) is looking to increase the amount of annual LNG cargos received at its Port Kembla Gas Terminal as a result of fluctuating demand.

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IE has lodged a modification to its existing development consent to meet higher demand for natural gas during the peak periods between April and September. Currently, AIE’s customers gas demands during peak season exceed the volume approved in the current consent granted by NSW Department of Planning.

AIE wants to increase the cargoes received from 26 shipments of standard-sized vessels (170,000 m3) up to 46 shipments of variable sized vessels to reflect the variability in demand. The increase of up to 20 shipments represents a 2% increase in the number of vessels that visit Port Kembla each year.

The projects FSRU, which remains moored

PV Gas starts construction on LNG terminal Construction work has started on PetroVietnam Gas’ LNG Thi Vai terminal project, which will have a throughput capacity of one million tonnes per annum in the first phase.

The terminal project will be built in two phases, with the first expected to be complete in 2022. The second phase, with a capacity of three million tonnes of LNG per year is expected to be complete in 2023. The terminal will be able to receive LNG vessels of up to 85,000 tonnes.

The first phase, which has committed investment of more than $285 million, comprises LNG tanks of 180,000 m3 as well as associated equipment. Once operational it will supplement the supply of 1.4 billion m3 of gas to customers including Nhon Trach 3 and 4 power plants and industrial customers. It will help to partially offset the shortage of gas in the country after 2022.

It will also contribute to ensuring gas and electricity demand for the key economic region in the Southeast.

In a statement the company says that the facility will be an important link in providing renewable gas for consumers, including the power plants. Together with LNG Son My import terminal, with a total expected capacity of up to 10 million tonnes per year, the energy demand for the Southeast region will be met.

The terminal is being designed and constructed by contractors from Japan, Korea and the UK.

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

at Port Kembla’s berth 101 to receive, store and send out natural gas, will not need to be modified as it has the capacity to handle the extra throughput.

AIE says the request for additional volume reinforces the project’s critical importance as a solution to the nation’s near-term gas supply challenges.

Zhonghua Gas & Shanghai Jiulian to form JV to explore LNG markets Zhonghua Gas & Shanghai Jiulian Group have signed a MoU to form a joint venture to co-explore end user markets in the Yangtze River Delta region.

The joint venture will be principally focused on the sale of LNG, LPG, engineering of LNG pipelines, sale, installation, maintenance of LNG delivery equipment amongst other areas.

Zhonghua Gas intends to integrate the gas supply business of its existing customer resources in the Yangtze River Delta, such as existing point-to-point supply of LNG, decentralised energy, direct supply of industrial LNG, vehicle and ship refueling into the LNG sales channel and business of the joint venture, and constantly expand the business scope of the joint venture.

Additionally, it will also look to obtain the qualification, license, permits, and approval for the joint venture to be engaged in LNG storage and transportation.

Shenergy Jiulian will guarantee the stability of LNG supply.

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TERMINAL NEWS l ASIA

Companies form collaboration over chemical storage terminal MOL Chemical Tankers, Korea National Oil Corporation and SK Gas are working together to develop a chemical terminal in the Port of Ulsan in South Korea.

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OL, along with SK Gas, will invest in Korea Energy Terminal Company, a joint venture company for developing tank terminals. One such project comprises a large-scale tank terminal for petroleum product, natural gas and petrochemical, with a total investment of KRW 616 billion. Commercial operations are scheduled to start in June 2024 with 2.73 million barrels of tank capacity.

Last year MOL announced its participation in a chemical tank storage terminal in the Port of Antwerp as part of its strategy to be a multimodel chemical logistics company.

South Korea is expected to increase its trading volume of liquid chemicals further, and Ulsan is already the industry’s major centre in the country, handling a wide variety of chemicals.

Starting with the Port of Antwerp and followed by the Port of Ulsan, MOL Chemical Tankers are on track to significantly develop their tank terminal business, improving their service range and flexibility to better meet customer demand.

KNOC to complete underground storage by 2021 Korea’s National Oil Corporation is set to complete a strategic underground storage facility for crude oil in Ulsan by June 2021.

During a site visit Lee Yeon-kyu, senior manager of KNOC’s Ulsan construction office, told reporters that the project is part of the company’s plans to replace its aboveground oil storage tanks and build a safe and environmentally friendly underground facility.

Once complete, the cavern will raise the company’s total oil storage capacity to 146 million barrels. Currently it has 136 million barrels to stockpile crude oil and refined oil products.

According to KNOC data, once complete,

the company will have a total capacity of 16.8 million barrels of underground oil storage in Ulsan.

The facility will stockpile mainly Middle East crude grades such as Saudi Arabia’s Arab Extra Light and Oman crude.

Reliance Industries to build $9.75 billion crude-oil-to-chemicals complex Reliance Industries will invest $9.75 billion to build a crude-oil-to-chemicals complex at its facility in Jamnagar, India.

The project will have a combined capacity to produce 8.5 million tonnes of ethylene and propylene, 3.5 million tonnes of benzene, toluene and xylenes, 4 million tonnes of paraxylene and orthoxylene as well as other derivatives.

Wood Mackenzie senior research analyst Afsar Hussain says: ‘The project will be one of the largest crude-to-chemicals projects to exist. The new capacity additions will raise India’s olefins capacity by 28%, taking total capacity to over 18 million tonnes. Additionally, the project will provide a significant leap in India’s aromatics capabilities, raising total capacity by 80% to around 17 million tonnes.

‘The crude feedstock for the project is likely to be supplied

by Aramco, who have a 20% stake in Reliance’s refining and chemicals business.

‘This is a bold move to secure crude market share and counter stagnating demand into transportation fuels, with petrochemicals expected to be the fastest growing oil demand sector through 2040.’

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DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

TERMINAL NEWS l THE AMERICAS

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DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

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TERMINAL NEWS l THE AMERICAS

TERMINAL NEWS THE AMERICAS

Rangeland Midstream starts pipeline construction Rangeland Midstream Canada has started construction work on its Marten Hills Pipeline System.

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he system consists of new crude oil and condensate pipelines located in the Marten Hills region of north central Alberta. The Marten Hills Pipeline System will extend 85 kilometers, terminating at an interconnect with Plains Midstream Canada’s

Rainbow Pipeline System, which serves the Edmonton, Alberta hub and refining market.

The Marten Hills system is expected to come into services in the second quarter of 2020.

The system is anchored by long-term transportation agreements with three of the

Puma Energy sells Paraguay business to Impala Terminals

region’s largest crude oil producers, who have made a combined minimum volume commitment representing 40% of the system’s capacity. The agreements span a 450,00-acre area of mutual interest dedicated to the Marten Hills system.

Harvest Midstream starts construction on storage terminal & pipeline

Impala Terminals has acquired infrastructure assets and operations from Puma Energy’s Paraguay business for $200 million.

Harvest Midstream Company has started construction work on the Ingleside Pipeline and Harvest Midway Terminal.

Puma says that it will use the proceeds of the sale to pay down debt in line with its capital management policy.

Emma FitzGerald, CEO of Puma Energy, says: ‘This transaction is a positive step forward in Puma Energy’s commitment to optimizing our global portfolio and deleveraging our balance sheet by the end of 2020.’

Impala Terminals owns and operates a network of terminals and fluvial operations in Spain, Mexico, Paraguay and Peru.

The Ingleside Pipeline is a new 24-mile, 24-inch oil pipeline that will originate from the Harvest Midway Terminal and connect to multiple oil export terminals in the Ingleside area, including the Flint Hills Resources Ingleside Terminal as well as the South Texas Gateway Terminal being developed by Buckeye Partners.

The pipeline will also connect to multiple terminals in the Midway and Taft area. It will have a final capacity of 600,000 barrels per day, with up to 380,000 barrels per day supplied by the existing Harvest Eagle Ford Pipeline Systems.

Jason Rebrook, CEO of Harvest Midstream Company, says: ‘Harvest has a strong history of expanding and improving our infrastructure to ensure access to safe and reliable transportation for our customers.

This investment is an exciting opportunity for growth that will allow us to better serve our Eagle Ford customers in the Corpus Christi and Ingleside markets.’

The new terminal will have the capacity to store more than 10 million barrels. The initial buildout will include 200,000 barrels of crude oil storage as well as measurement and pumping infrastructure capable of 25,000 barrels per hour.

‘The Harvest Midway Terminal is a great addition to our existing infrastructure in the Eagle Ford, providing additional storage, connectivity, and points of delivery for our customers,’ says Sean Kolassa, president of Harvest Midstream Company.

The Ingleside Pipeline is expected to begin service at the end of the first quarter of 2020 and the Harvest Midway Terminal is projected to be in-service at the beginning of the fourth quarter of 2020.

IFM Investors completes Buckeye acquisition IFM Investors has completed the acquisition of Buckeye Partners, adding one of the largest diversified networks of integrated midstream assets to IFM’s energy infrastructure investments portfolio.

Buckeye’s assets include 6,000 miles of pipeline, with more than 100 delivery locations and 115 liquid petroleum products storage terminals with aggregate capacity of more than 118 million barrels. Additionally, Buckeye comprises a network of marine terminals located primarily in the East and Gulf Coast regions of the US as well as in the Caribbean.

The acquisition is aligned with IFM’s focus on investing in high-quality, essential infrastructure assets that underpin the economies in which they operate.

Jamie Cemm, executive director for IFM, says: ‘Buckeye represents a natural extension of IFM’s expertise in investing in, operating and growing essential midstream energy infrastructure in North America. Buckeye is a great company with a rich history, and we look forward to steering the team and company through the next phase of the US and global energy evolution.’

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TERMINAL NEWS l THE AMERICAS

Moda announces early delivery of storage capacity Moda Midstream has started deliveries of storage tanks to customers from its 10-millionbarrel expansion at the Moda Ingleside Energy Centre in Ingleside, Texas.

The company has so far delivered 2.4 million barrels of new storage capacity ahead of schedule and has a combined total storage of 4.4 million barrels at the energy centre and Moda Taft Terminal. Moda expects to deliver half of the 10-million-barrels of expansion tankage to customers and will have a total capacity of 7 million barrels by the end of 2019.

Bo McCall, Moda president and CEO, says: ‘We have received strong demand for additional storage and throughput commitments to support our next expansion phase that will be similar in size to what we are executing today and will be easily accommodated at MIEC’s 925-acre footprint and expansive waterfront.’

The company has also started new marine enhancements.

MIEC will be one of the first destinations to benefit from the Port of Corpus Christi Channel Improvement Project to increase the depth of the channel. Moda has started structural enhancements and dredging to berth 5. These enhancements will allow for the docking of Suezmax class vessels. They have also begun improvements to berth 4, which will allow for the docking of VLCCs. Additionally, Moda recently placed tankage in service at the Moda Taft Terminal, located at the centre of an emerging pipeline and storage hub near Taft, Texas. It is connected to the EPIC crude oil pipeline and Moda’s 20-inch pipeline between the Inner Harbour and MIEC. The terminal will be connected to the Cactus II Pipeline, the Gray Oak pipeline and other crude oil systems.

The company is also evaluating the construction of an additional pipeline, the Moda Ingleside Express Pipeline. It would be bi-directional and run between MIEC and Taft. The new pipeline would provide customers additional connectivity between the Moda Taft Terminal and MIEC’s waterfront.

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Starlight Relativity acquires refinery & storage assets Calumet Specialty Products Partners has finalised the sale of its San Antonio, Texas refinery including a crude oil terminal and pipeline to Starlight Relativity Acquisition Company for $63 million.

Tim Go, CEO of Calumet, says: ‘The divestment of the San Antonio refinery represents another step forward in Calumet’s strategic transformation. This transaction further de-levers Calumet’s balance sheet, reduces earning volatility by lowering our exposure to fuels refining, and allows the partnership to focus its time and capital more intently on our higher-return core specialty products business.’

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

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TERMINAL NEWS l THE AMERICAS

Kinder Morgan acquires natural gas pipeline

New North American midstream infrastructure company created

Kinder Morgan Tejas Pipeline has acquired natural gas pipeline assets owned by Southcross Energy.

Ironwood Midstream Energy Partners has created Ironwood Midstream Energy Partners II, a midstream infrastructure company for oil and gas producers in North America.

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he purchase price was $76 million and includes the Corpus Christi Pipeline Network and Bay City Lateral.

Kinder Morgan Natural Gas Midstream president Sital Mody says: ‘We continue to focus on opportunities to increase our

natural gas connectivity to meet LNG facilities, Gulf Coast power, industrial and petrochemical demand. These assets are a nice complement to our existing Texas portfolio of assets and allow for further connectivity on our Texas Intrastate system.’

The company is supported by an initial capital commitment of $400 million from EnCap Flatrock Midstream. It is pursuing greenfield projects and acquisition opportunities, with a focus on opportunities in Texas.

Ironwood II also announced it has entered into a binding agreement to purchase midstream assets in South Texas currently owned and operated

by Twin Eagle Gardendale Pipeline. The company will acquire Twin Eagle’s Gardendale and Asherton gathering systems, which together currently include 137 miles of active crude oil gathering pipeline with connections to multiple long-haul pipelines, allowing access to the US Gulf Coast, Three Rivers and Houston markets. Interconnects include Plains All American Pipeline, Harvest Pipeline Company, NuStar Logistics and the upcoming EPIC crude oil pipeline. The Gardendale and Asherton systems span Dimmit and La Salle counties and are supported by longterm dedications totaling more than 124,000 acres.

The transaction is expected to close in December 2019.

Vopak to build new US Gulf Coast storage terminal Vopak has been selected by Gulf Coast Growth Ventures to design, build, own and operate a new industrial storage terminal on the US Gulf Coast.

The terminal will be dedicated to serving the planned 1.8 million tonnes per year ethane cracker being developed by GCGV, the joint venture between ExxonMobil and SABIC. All liquid products moved by marine vessels will be handled by the new terminal. The total capacity will be around 130,000 m3 and will include pipelines connecting the terminal to the cracker complex.

It is due to be operational consistent with a planned start-up by 2022.

The investment is covered with a long-term agreement and is aligned with Vopak’s strategy to focus on industrial terminals and to service the chemical industry.

Eelco Hoekstra, chairman of the executive board and CEO of Vopak, says: ‘We are very excited to support GCGV with this major industrial development in the US. We are proud of our expertise and long track record of storing vital products.’

Keyera to maintain ownership in Base Line Terminal Keyera Corp. has decided to keep its 50% interest in Base Line Terminal near Edmonton, Alberta.

The decision follows the company recently receiving a right of first refusal notice from an affiliate of Kinder Morgan Canada in respect of Kinder Morgan’s 50% interest in the terminal.

The aboveground storage facility comprises 4.8 million barrels of crude oil storage capacity.

The ROFR was provided by Kinder Morgan in connection with the proposed acquisition of Kinder Morgan Canada by Pembina Pipeline.

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DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

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What to expect:

2020 Speakers include:

– Setting the scene for oil storage: Supply and demand fundamentals – Latest on geopolitical tensions, the oil price, what’s in contango or backwardation, and where are trade flows headed?

– 2020 marine fuel sulphur cap: What does it all mean for the storage sector today and tomorrow? – With expectations of a strong take up of distillates and the inherent drop off in fuel oil, how will this transform Europe’s storage utilization?

Bassam Fattouh Director, Oxford Institute for Energy Studies

Ellen Ruhotas Managing Director, Zenith Terminals

Hari Dattatreya Global Oil Director, Vopak

Konstantinos Kalligeros Director, Commodities, Commerzbank

Rutger van Thiel CEO, Alkion Terminals

Berend Paasman Senior Vice President, DNB Bank

– International perspectives on oil storage: Latest on developments – Better understand how other regions are developing and how might that impact Europe, and what lessons can Europe learn?

– Finance, investment and latest M&As trends – What is required for the storage industry today?

Principal media partner:

Book Now

www.platts.com/oilstorage support@platts.com +44 (0)20 7176 6111 #PlattsOilStorage DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

15

TERMINAL NEWS l THE AMERICAS

US FERC approves Texas LNG Brownsville export project The US Federal Energy Regulatory Commission has voted to authorise Texas LNG Brownsville’s two train LNG export project in the Port of Brownsville, Texas.

T

he 4 million tonnes per annum facility will be built on a 625-acre sites and will enable the export of LNG to established and emerging markets. FERC’s authorization is a crucial step in the environmental review process to site, construct and operate the facility.

Vivek Chandra, co-founder and CEO of Texas LNG, says: ‘With the Texas LNG Brownsville project, we are developing a mid—sized LNG export facility to better connect abundant and low-cost US natural gas with the world’s growing appetite for clean fuels, and we are so pleased to have reached this important milestone that paves the way for a final investment decision.’

US close to achieving full energy independence The US is only months away from achieving full energy independence and total primary energy production will outpace primary energy demand by 30% in 2030.

According to Rystad Energy’s latest forecast, this milestone follows a strong period of growth in both hydrocarbon and renewable resources. Sindre Knutsson, vice president on the company’s gas markets team, says that it forecasts that the US will have primary energy surplus – and not a deficit – by February/March 2020, depending on the winter season.

‘Going forward, the US will be energy independent on a monthly basis, and by 2030 total primary energy production will outpace energy demand by about 30,’ Knutsson says.

Rystad also predicts that the next monthly release from the Energy Information Agency will show that the country has been self-sufficient in primary energy from October 2018 through to September 2019, the first time to have happened since May 1982.

Knutsson adds: ‘In 2018, the US has a petroleum deficit of $62 billion, equivalent to 10% of the country’s overall trade deficit of $621 billion, including goods and services. These changes in the US energy balance could turn its petroleum deficit of $62 billion in 2018 to a surplus of $340 billion by 2030.

That adds up a $400 billion shift, in the space of only dozen years, thanks primarily to the gargantuan rise of output from the US shale sector.’

The company forecasts that total primary energy production will increase from 95 quadrillion Btu in 2018 to 138 quadrillion Btu in 2030. Crude oil and natural gas production will be the two main contributors to primary energy supply growth in the period, with oil accounting for 75% of the growth and gas 38%. Crude output driven by production in the Permian, Bakken and Eagle Ford shale plays is forecast to grow from 21.5 quadrillion Btu in 2018 to 39 quadrillion Btu in 2020.

On the demand side, Rystad forecasts a cumulative average growth of 0.4% from 2018 to 2030, to about 106 quadrillion Btu in 2030.

‘The emerging energy surplus will make the US less vulnerable to foreign energy-related politics and facilitate growing exports.

While renewable energy output will be consumed domestically, the future for oil and gas exports is bright.’

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Valero signs agreements for three new refined product terminals Valero Marketing and Supply de México has signed long-term agreements for the use of three new refined product terminals in Guadalajara, Monterrey, and Altamira, Mexico.

These terminals will support Valero’s strategy to expand its product supply chain into high growth markets and are due to start operations in 2021.

The Guadalajara and Monterrey terminals will be built under separate joint venture arrangements with no cash contributions from Valero. Under the long-term terminal service agreements, the two terminals are designed to provide Valero with the capability to receive refined products via unit trains and truck loading facilities to serve regional and local markets. The Guadalajara terminal is expected to have 900,000 barrels of storage capacity while the Monterrey terminal is expected to have 425,000 barrels of storage capacity.

The Altamira terminal, which will be funded and constructed

by Operadora de Terminales Maritimas, will offer Valero access, under a long-term terminal service agreement, to a second port facility for imports of refined products. The terminal is expected to have 1.1 million barrels of storage capacity, truck loading facilities to serve local market demand and rail services for distributing products to inland Mexican markets, including Monterrey.

Currently, Valero is marketing products through a third-party terminal in Nuevo Laredo and through three rail-to-truck transload facilities located in Guadalajara, Monterrey, and Chihuahua with plans to begin transloading products in Puebla starting in 2020. This marketing programme is laying the groundwork for Valero’s supply chain expansion.

Valero signed long-term agreements in 2017 for three refined product terminals located in the Port of Veracruz, Puebla and Mexico City. All three are expected to begin serving customers in 2020.

The six new terminals, along with the Ferromex rail transportation services from the port facilities in Veracruz and Altamira, will provide Valero with an integrated system of 5.8 million barrels of storage capacity to supply four of the largest metropolitan areas in Mexico as well as smaller fuel markets throughout the country that are under development.

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

TERMINAL NEWS l THE AMERICAS

Enterprise & Enbridge agree to jointly develop deepwater terminal Enterprise Products Partners and Enbridge have executed a letter of intent to jointly develop a deepwater crude oil terminal in the Gulf of Mexico capable of loading VLCCs. The companies have agreed to focus commercial development efforts on Enterprise’s Se Port Oil Terminal deepwater crude oil terminal. Under the terms of the letter of intent, the companies agreed to negotiate an equity participation agreement whereby, subject to SPOT receiving a deepwater port license, an Enbridge affiliate could acquire an ownership interest in SPOT Terminal Services, which owns SPOT. The project consists of onshore and offshore facilities, including a fixed platform located 30 nautical miles off the Brazoria County, Texas coast in 115 feet of water.

SPOT is designed to load VLCCs at rates of 85,000 barrels per hour, or up to 2 million barrels per day. The SPOT design also meets or exceeds federal requirements and, unlike existing and other proposed offshore terminals, is designed with a vapour control system to minimise emissions. Construction of the terminal is subjects to required approvals and licenses

from the federal Maritime Administration, which is currently reviewing the SPOT application.

A.J. ‘Jim’ Teague, CEO of Enterprise’s general partner, says: ‘We are very pleased to work with Enbridge to jointly develop a deepwater port in the Gulf of Mexico to support growing exports of US crude oil. We value Enbridge’s expertise and resources as we focus our collective commercial development efforts on making the SPOT project a reality.’

Al Monaco, president and CEO of Enbridge, adds: ‘This collaboration leverages our jointly owned and highly competitive Seaway system and capitalises on each of our capabilities to drive out highly capital efficient export infrastructure for our customers. For Enbridge, it is also a key part of our priority to provide our North American light and heavy crude customers with highly efficient access to the Houston-area refining markets and growing global demand.’

Energy Transfer completes acquisition of SemGroup Energy Transfer has completed the acquisition of Tulsa-based SemGroup for $5.1 billion.

Energy Transfer’s acquisition of SemGroup’s Houston Fuel Oil Terminal (HFOTCO) strengthens its crude oil transportation, terminalling and export capabilities, and provides the company with a strategic position on the Houston Ship Channel. HFOTCO has more than 18 million barrels of crude oil storage capacity, five deep-water ship docks and seven barge docks.

Energy Transfer is building the Ted Collins pipeline, a 75-mile crude line that will connect the terminal to the company’s Nederland terminal. The pipeline is expected to be in service in 2021, and will have an initial capacity of 500 million barrels per day.

The company says that this acquisition expands its pipeline footprint by adding crude oil and NGL gathering systems and transmission lines in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas with connections to crude oil terminals in Cushing, Oklahoma. The acquisition will also provide a significant natural gas gathering and processing presence in the Alberta Basin in western Canada.

Prevention with Precision Engineering Software Steyr’s (ESS) risk assessment simulation software for tank storage facilities offers predictive precision that helps operators mitigate risk. ESS is dedicated to delivering innovative simulations that mitigate risk by creating scenarios and illustrating solutions that make facilities safer and to minimize such disasters.

Phone: +43 7252 20446 Contact: Ravi Kanth Borra (Product manager SENSE Platform) Mail: ravi.borra@essteyr.com l Phone: +43 7252 204 4668

www.essteyr.com

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

17

TERMINAL NEWS l EUROPE

TERMINAL NEWS EUROPE

European Commission approves €130 million LNG terminal expansion The European Commission has approved a €130 million investment from the European Regional Development Fund to expand an LNG terminal in Świnoujście, northwest Poland.

T

he project will increase the terminal’s capacity to convert LNG into its gaseous form, store it, and ensure that it can be easily transported.

The funding was possible due to an important regional dimension of the project.

Product from the terminal will be transported through the newly constructed interconnectors to other countries including the Baltic States, Slovakia, Czechia and Ukraine.

Maroš Šefčovič, vice president for Energy Union,

says: ‘I applaud Poland’s commitment to diversification policy that lies at the centre of our energy union strategy. It is yet another key step in strengthening security of supply of entire Central and South Eastern Europe, increasing competition on the regional gas market and providing industry as well as households with secure, reliable and affordable energy.’

The development of the terminal is part of ongoing efforts to achieve energy independence and the EU’s climate goals.

HES Botlek terminal completes biodiesel storage expansion HES Botlek Tank Terminal has commissioned six biodiesel storage tanks with a total capacity of 20,000 m3.

The expansion, which is backed by multi-year customer contracts, increases storage capacity at the terminal to more than 510,000 m3.

The terminal, located in the Port of Rotterdam, more than doubled its capacity to 490,000 m3 for petroleum products and biofuels in 2017 and is expanding its berth capacity to accommodate this growth.

It is yet another key step in strengthening security of supply of the entire Central and South Eastern Europe

Oiltanking Deutschland sells Deggendorf tank terminal Oiltanking Deutschland has sold its Deggendorf tank terminal to Sailer Mineralölhandel, a wholly-owned subsidiary of Friedrich Scharr.

Oiltanking says that it has decided to no longer operate the tank terminal it acquired in 2013 for strategic reasons. The sale to the Scharr Group, which has a strong presence in Bavaria, secures the future of the site.

Sailer Mineralölhandel will continue the tank terminal operation in Deggendorf with the current seven employees as well as the previous handling and contractual partners. In addition to its previous trading activities via its own tank terminal in Augsburg, Sailer also plans to offer various heating oil and diesel qualities to the regional mineral oil trade in the catchment area of the Deggendorf terminal.

Thanks to a sufficiently large number of tanks, the location on the Danube offers good conditions for this, so that the company is convinced that it will be able to increase the throughput of mineral oil in Deggendorf in the medium term.

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DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

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TERMINAL NEWS l EUROPE

European Investment Bank to stop funding fossil fuel projects The European Investment Bank has announced it will stop funding fossil fuel energy projects from the end of 2021 as part of its new climate strategy and lending policy.

A

ny future funding will ‘accelerate clean energy innovation, energy efficiency and renewables’ the bank

says.

EIB president Werner Hoyer says: ‘Scientists estimate that we are currently heading for 3-4˚C of temperature increase by the end of the century. If that happens, large portions of our planet will become uninhabitable, with disastrous consequences for people around the world. The EU bank has been Europe’s climate bank for many years.

Today it has decided to make a quantum leap in its ambition. We will stop financing fossil fuels and we will launch the most ambitious climate investment strategy of any public financial institution anywhere.’

Five lending principles have been established that will govern future EIB engagement in the energy sector, including prioritising energy efficiency, enabling energy decarbonisation through increased support for low or zero carbon technology, increasing financing for decentralised energy production, innovative energy storage and e-mobility and increasing the impact of investment to support energy transformation outside of the EU. Wood Mackenzie research director Nicholas Browns says that this new financing criteria will make lending to gas projects very difficult.

‘When burnt, gas releases less carbon dioxide, nitrogen and sulphur oxides than coal and oil. Furthermore, coal-to-gas replacement

has had a profound impact on air quality in northern China to the huge benefit of public health. It also has significantly lower full lifecycle carbon emissions than coal. However, while the comparative combustion benefits are undoubted, the sector may not be able to rely exclusively on this argument to make the case for gas and LNG. The benchmark looks like it will be set higher. Gas and LNG may be better but are they good enough?

CLH starts management of fuel storage facilities CLH has started operations at six new airports, including managing fuel storage facilities and providing into-fuelling services, in Tenerife Sue, Valladolid, San Sebastián, León, Melilla and Granada.

The company’s management of the fuel storage facility and hydrant network in Tenerife-Sur represents its first operation in the Canary Islands. The airport is the second largest in volume of activity in the Canary Islands, with 450,000 m3 of fuel supplied last year.

Tenerife Sur is the fifth most important airport where CLH Aviación is present in Spain and the sixth hydrant network to be managed by the company in the country, after Adolfo Suárez Madrid-Barajas, Barcelona-El Prat, Málaga, Palma de Mallorca and Alicante.

The company is now present at all the airports that AENA awarded to the company in recent tendering processes, after starting its operations in Burgos in April and in Reus and Sabadell in November.

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‘Beyond financing, it is possible that the debate could start to impact procurement decisions from carbon-intensive projects and portfolios, likely accelerating carbon capture, carbon offsetting and electrification of liquefaction. This year already saw the first carbon neutral LNG cargoes delivered while several companies are implementing or investigating using renewable power to drive the liquefaction process.’

Agreement reached for developing Cyprus LNG terminal Construction of Cyprus’ first LNG terminal is a step closer after the government reached an agreement with the Chinese consortium that will carry out the project.

The agreement follows negotiations between the Natural Gas Infrastructure Company, the Natural Gas Public Company and the joint venture between China Petroleum Pipeline Engineering Company and Metron. Hudong-Zhonghua Shipbuilding and Wilhelmsen Ship Management will also be involved in the joint venture.

The project at Vassiliko is due to start operations in 2021 and it will supply the market with LNG for electricity.

The LNG tanker carrier Galea will be used as the FSRU, with the cost for the installation and deployment of the floating unit estimated at €260 million.

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

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21

TERMINAL NEWS l EUROPE

Vopak grows chemical storage capacity in Belgium, Mexico & China Vopak has announced plans to build a new chemical storage terminal in China and expand chemical capacity at its facilities in the Port of Antwerp and Mexico.

I

n its third quarter financial update, the company says that it will develop a joint venture industrial terminal to provide storage and handling services for the chemical manufacturing plants in the Qinzhou Chemical Park in southwest China, together with Shanghai Huavi Group Investment and Guangxi Qinzhou Linhai Industrial Investment. This terminal, in which Vopak will hold a 51% share, will have an initial capacity of 290,000 m3 and is expected to be commissioned mid-2021.

Additionally, Vopak is also expanding chemical capacity at its existing facilities in Belgium and Mexico. It will expand Vopak Terminal Altamira in Mexico with 40,000 m3 for chemical products. The expansion will facilitate the growing import of chemical products in Mexico and is expected to be commissioned in the second half of 2021.

In Blegium, the company is investing in 50,000 m3 for stainless steel capacity for chemicals at the Vopak Terminal Linkeroever. The new tanks will be connected to the new jetty that is currently under construction.

The jetty will have two berths and will be suitable for vessels up to 80,000 DwT. Monoethylene Glycol, among other products, will be stored in the new tanks. The port hosts one of the main industrial chemical clusters in Western Europe and is a strategic location for Vopak. The company has close to 800,000 m3 of independent storage capacity and is expanding its footprint. The additional capacity is expected to be commissioned in mid-2021.

The company reported an EBITDA of €625 million, an increase of €71 million compared to the third quarter 2018, reflecting good aggregate

business performance, positive currency translation and positive IFRS. Its occupancy rates of 84% reflects planned temporary conversion activities related to IMO 2020 readiness and ongoing market conditions at oil hub terminals. Other market segments remained solid.

Looking ahead, the company says that most of the fuel oil capacity conversion for IMO 2020 have been delivered.

Vopak will continue to invest in the growth of its global terminal portfolio in 2020 and beyond with growth investment for 2020 that could be in the range of €300 million to €500 million, subject to developments in the business environment.

GPS opens expanded Amsterdam storage terminal GPS has officially opened its expanded gasoline, gasoline components and biofuels storage and blending terminal in the Port of Amsterdam.

The company has expanded its class 1 certified storage capacity from 148,500 m3 to 282,500 m3 across 17 tanks as part of an international GPS programme of key asset developments and acquisitions. The expansion marks the latest development in this international strategy and follows major ‘buy and build’ investments at GPS’ greenfield projects in the UAE and Malaysia.

The new tanks will create a larger and more bespoke terminal facility offering increased capability and a high degree of flexibility. The expansion also markets the latest achievement in GPS’ strategic partnership with Varo Energy and the Port of Amsterdam. In addition to gasoline, gasoline components and biofuels, the terminal can also handle other commodities to allow the company to meet a growing consumer demand for greater flexibility.

As part of the expansion, GPS will also develop a rail handling facility to equip its site with a cost effective and sustainable alternative to road and river transport for a range of its energy and chemical commodities.

Eric Arnold, CEO at GPS, says: ‘The opening of this facility is an important milestone for GPS. The investment in increased capacity and flexibility which are now built into the Amsterdam terminal reinforces GPS’ commitment to providing customers with world-class assets, while pursuing our global expansion plans.

‘We are excited by the possibilities of our expanded site and are committed to additional investments here in Amsterdam that will ensure both GPS and our customers are well positioned to capture future opportunities.’

22

HES Hartel Tank Terminal project reaches milestone Significant progress has been made in the development of the 1.3 million m3 HES Hartel Tank Terminal after the Port of Rotterdam Authority handed over the completed maritime facilities.

The Port of Rotterdam Authority started construction on the facilities in January 2018. In addition to a 1,200-meter-long deep-sea quay wall, a 1,000 meter-long quay wall has been built for inland barges, together with a 350 meter long jetty.

At the same time, dredging and earthmoving work took place, as well as bank and harbor basin protection. Work on all these maritime facilities was completed by the end of 2019, on schedule.

Works on underground pipeline connection to the nearby BP refinery are nearly finished and construction works for building the tanks and the related piping are in full swing, executed by a consortium of contractors.

A total of ten companies, from engineering companies to suppliers of building materials, will construct the bulk liquid storage terminal. The new facility will be the first in the Netherlands that will be built according to the latest PGS 29 regulations for tank storage.

HES has said it will start recruiting for the first of 80 new colleagues responsible for running the terminal in the first quarter of 2020. Commissioning on the terminal is expected in the third quarter of 2021.

Find out more about the project & HES’ ambitions for the future in an interview on page 46

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

TERMINAL NEWS l TANK STORAGE AWARDS

Five reasons to enter the Global Tank Storage Awards With just a few weeks to go until the fourth Global Tank Storage Awards, here are five reason why you should make time to enter for an award: 1. Free marketing – Winning an award is a great PR opportunity & a fantastic way of letting the market know what your company has achieved. Not only are winners of the Global Tank Storage Awards presented with a bespoke winner’s trophy, they are also given a winner’s pack including logos, social media banners & email signatures highlighting your achievement.

The winners will also be displayed on screen during the StocExpo exhibition.

2. Increased credibility – Representatives from BP, Shell Trading, Ineos, Kinder Morgan, VTTI, Oiltanking, LBC, Vopak, Koole & InterTerminals are judging the Global Tank Storage Awards. They will review all nominations received, meaning that even if you don’t win – your company’s products will still be showcased to industry leaders.

3. Employee motivation – Awards recognise the hard work and achievements of your employees so winning one can help boost staff morale and improve motivation. Thank your staff for all their hard work by treating them to a night out at the Global Tank Storage Awards ceremony on March 10. Held after the first day of StocExpo in Rotterdam, tickets include a 3-course meal, all-inclusive drinks all evening, circus acts, casino & more.

4. High level networking – Over 200 senior terminal professionals attend the gala dinner – make the most of this exclusive networking opportunity.

5. It’s quick & easy – New for 2020, you can either write your nomination or upload a video instead. The improved website allows you to save your nomination and finish it later & keep track of which categories you’ve entered – you are welcome to enter as many categories as you like.

For full details on the 2020 Global Tank Storage Awards and to submit a nomination visit www.tankstoragemag.com/awards.

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DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

23

TERMINAL NEWS l AFRICA & MIDDLE EAST

TERMINAL NEWS AFRICA & MIDDLE EAST

India to lease strategic storage to Saudi Aramco India will lease a quarter of its strategic petroleum reserves to Saudi Aramco to store 4.6 million barrels of oil.

T

he agreement between Saudi Aramco and the government’s oil storage company Indian Strategic Petroleum Reserves, concerns the company’s Padur storage facility in Karnataka, and taking one of four storage compartments.

The UAE has also contributed to strategic reserves in India. The

Middle East unit of Indian Oil signed a preliminary deal with Saudi Arabi’s Al Jeri Transport Company for cooperation in the downstream sector.

According to local news reports, Saudi Aramco is currently evaluating its Indian investments and thinks that buying the government’s stake in Bharat Petroleum as a good opportunity.

Saudi Aramco launches IPO Saudi Aramco has launched its initial public offering (IPO) by announcing its intention to float on the main market of Tadawul.

News report suggest that it could be the world’s biggest listing as the kingdom seeks to diversify its economy away from oil.

Amin Nasser, president and CEO of Saudi Aramco, says in a statement: ‘Saudi Aramco’s vision is to be the world’s pre-eminent integrated energy and chemicals company. Over the last three years, we were responsible for one in every eight barrels of crude oil produced globally and our proved liquids reserves, at the end of 2018, were five-times larger than the combined proved liquid reserves of the five major IOCs. ‘Building on our position among the world’s least carbon intense sources of crude oil, Saudi Aramco aims to grow its business sustainability by leveraging technology and innovation to lower our climate impact.

‘With a comprehensive and disciplined process for capital expenditures, we seek to maintain a prudent and flexible balance sheet. Our approach delivered higher operating cash flow, higher free cash flow, higher EBIT, higher EBITDA and higher ROACE than each of the five major IOCs in 2018G. We are proud of our many achievements over nearly nine decades and are excited about the prospects ahead.’

As this magazine went to print, the company’s main IPO raised $25.6 billion and it will list its shares on the Saudi exchange imminently.

24

Qatar Petroleum & Arabian Refinery launches new Egyptian refinery Arabian Refinery Company and Qatar Petroleum have successfully launched the Egyptian Refining Company refinery project in Mostorod, north of Cairo.

All of the refinery units are now successfully operating and are expected to ramp up to full production before the end of the first quarter of 2020. This will reduce Egypt’s dependence on imported petroleum products.

The successful start-up of the refinery, of which Qatar Petroleum owns 38.1% and the Arabian Refinery Company owns 66.6%, will further strengthen Qatar Petroleum’s international downstream footprint through this project, which is its largest investment in an Arab country as well as in Africa. The refinery will support Egypt’s plans to increase the resilience of its domestic hydrocarbon supply chain and reduce dependence on imports.

The facility aims to process around 4.7 million tonnes per annum of atmospheric residue feed from the adjacent Cairo Oil Refinery Company. It will mainly produce Euro V refined products intended for consumption primarily in Cairo and surrounding areas.

New $40 million chemical storage terminal planned for Dubai AquaChemie Middle East has announced plans to build a $40 million chemical storage terminal facility at Jebel Ali Port in Dubai.

The terminal will serve as the company’s gateway hub across the Gulf and beyond the region. AquaChemie is a chemical producer and distributor of commodity and semi specialty chemicals.

Mott MacDonald has been selected for the design, engineering and project management of the terminal, which is due to be commissioned by mid-2021.

The terminal will comprise 30,000 m3 of capacity for liquid hydrocarbons along with day tanks, chemical processing units and automated drumming lines as well as associated infrastructure including a covered warehouse and a separate dry good storage area.

In a statement, the company says: ‘The new chemical terminal will leverage its prime site location at Jebel Ali Port operated by DP World, including multiple jetty pipelines, along with other crucial existing utility and building support infrastructure.’

V. Anandkumar, co-founder and director of AquaChemie Middle East, says: ‘The project will serve as a catalyst to boost petrochemical trade between manufacturers in the region and end-users anywhere in the globe. In addition to serving as a sales channel, the project will also allow regional petrochemical majors to market their various product lines in drums or intermediate bulk containers for distribution to the tertiary chemical industry.’

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

American Tank & Vessel

Offers Choices for Hydrocarbon Storage In the emerging hydrocarbon market, a critical decision is choosing the best storage solutions to meet a project’s unique needs. AT&V’s in-house capacity supports the options in the table below. If you would like more information, call or email for support or a copy of our guide built to address gas storage options.

AT&V Storage Options TYPES OF HYDROCARBON STORAGE

SIZE RANGE

PRESSURE RANGE

DELIVERY MODE

Vertical Vessels (API-620 and ASME)

10,000 - 500,000 Gal.

5 - 2,000 psig

A, B, C, & D

Horizontal Vessels (API-620 and ASME)

10,000 - 1MM Gal.

5 - 2,000 psig

A, B, C, & D

Spheres (API-620 and ASME)

10,000 - 3MM Gal.

5 - 400 psig

C&D

API-620 Steel/Concrete Tank Options

500,000 - 40MM Gal.

2 - 15 psig

C&D

API-650 EFR, IFR, Cone & Dome Roofs

20,000 bbl - 750,000 BBL

0 - 2.5 psig

D

Delivery Modes: A = Truck, B = Rail, C = Water, D = Site

Vessels and Spheres can be Single Walled or Double Walled.

Request a copy of our decision storage guide or ask us a question at tanks@at-v.com

tanks@at-v.com DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

AMERICAN TANK & VESSEL © 2019 AT&V 25

TERMINAL NEWS l TANK STORAGE AWARDS

26

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 15/10/19

Crockett, Contra Costa County, California, US NuStar Fuel storage tanks at NuStar’s terminal in Crockett caught fire following an explosion at the storage facility. According to a report from the company, the explosion released 6,664 barrels of ethanol, 3,846 barrels of renewable diesel and 43 barrels of jet fuel. The tanks were holding a combined 250,000 gallons of ethanol when they caught fire and one collapsed. The blaze was quickly extinguished, and an investigation has been launched.

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27/11/19

29/10/19

Port Neches, Houston, Texas

Eastern North Dakota, US

TPC Group

TC Energy

An explosion at a processing unit at TPC Group’s Port Neches facility ignited fires that burned for six days. The resulting fire affected 12 storage tanks at the facility and resulted in the temporary evacuation of 60,000 people from homes around the facility. Three employees were injured but all employees were evacuated and accounted for.

The facility has been shut since the incident and will be closed for an indefinite but extended period. Response efforts continue to focus on activities to secure site equipment and minimize the impact to the environment. Plans are underway to transfer all remaining material from the affected tanks based on mechanical integrity inspections.

According to media reports, the company will work to rebuild the plant in 2020. An investigation has been launched to establish the cause of the incident.

Sections of the Keystone pipeline were shut down after around 383,000 gallons of oil spilled from the pipeline.

After a drop in pressure was detected the pipeline was immediately shut down and TC Energy’s emergency response procedures were activated. The cause of the spill is unknown, and a section of the affected pipe was sent to a third-party laboratory for inspection. The pipeline returned to service on November 10 following the approval of a repair and restart plan by the US Pipeline and Hazardous Materials Safety Administration. As part of the plan, the company initially operated the pipeline at a reduced pressure with a gradual increase in the volume of crude oil moving through the system.

DECEMBER 19/JANUARY 20 VOLUME 15 ISSUE NO.6

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