Tank Storage Magazine April/May edition

APRIL/MAY 18 Volume 14 Issue No.2

FUJAIRAH’S NEWEST STORAGE TERMINAL The latest storage asset in the Port of Fujairah for middle distillates & fuel oil also has one of the fastest flow rates

THE RISE OF THE FAKE TERMINAL Port of Rotterdam officials have acted to counter the growth of fake terminals

REGIONAL FOCUS: MIDDLE EAST

The voice of the storage terminal industry

PROFILE l XXXXXX XXXXXX

ROTARY AT A GLANCE ROTARY is one of the region’s leading oil and gas infrastructure services companies with extensive international experience offering fully integrated engineering design, procurement, construction (EPC) and maintenance services to the oil and gas, petroleum and petrochemical industries.

Headquartered in Singapore, Rotary has established a strong presence in the Asia-Pacific region and continues to make its mark as a global player. Established in 1972, Rotary has forged a reputation built on its hallmark traits of providing quality services, within budget, safely and on-time delivery. Today, Rotary boasts a total strength of about 6,000 employees, including a highly and multi-skilled workforce that forms the mainstay of its core EPC services.

Singapore remains a key market for Rotary while it actively seeks business opportunities overseas. Rotary has subsidiaries and associate companies in Malaysia, Thailand, Indonesia, India, China, Vietnam, Saudi Arabia, the United Arab Emirates, Myanmar and Slovenia.

Rotary is internationally certified by ISO 9001, ISO 14001 and OHSAS 18001.

Rotary’s capabilites include: • EPC for bulk liquid storage terminals • EPC for offsite & utilities • Front-end engineering design (FEED) & detailed engineering • Mechanical works including piping & equipment installation • Electrical & instrumentation works • Civil, structural & building works • Maintenance of process plants & facilities • Fabrication of modules • Specialised services

Rotary Engineering Limited 2 HQ: 17 Tuas Avenue 20 Singapore 638828 Tel: (65)6866 0800 • Fax: (65)6866 0999 • Email: bdd@rotaryeng.com.sg

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

CONTENTS

Contents

24

News TERMINAL NEWS 09

The Americas

13 Europe 17

Africa & Middle East

19 Asia 20

Incident report

31

Profiles 24

Fujairah’s newest storage terminal

34 Storage for a flourishing trading market 42

42 APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

Ensuring India’s energy security

Storage in the Middle East 22

Tank terminal update: Middle East

40

Middle East storage operators buck oil price trend

Market analysis 29

Shifting LNG market dynamics

31

The rise of the fake terminal

37

Storage hubs: navigating unprecedented changes 01

CONTENTS

Contents

59

Technical features 49

Technical news

56

Deploying automation logic to fuel management systems

59

The future is smart

63

Innovative techniques for tank storage inspection

69

Overfill protection: A review of API 2350 4th & 5th edition

72

Jetty inspection from another perspective

75 78

Events 44

The oil & gas industry’s biggest week

Using sonar to fight sludge

81

India: a growth story

Magnetic anchors for smarter scaffolds

82

The digital transformation

84

Advertisers’ index

85

Upcoming events

72 44 02

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

CONTENTS

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CONTRIBUTORS

Contributors APRIL/MAY 18 Volume 14 Issue No.2

APRIL/MAY 18 Volume 14 Issue No.2

FUJAIRAH’S NEWEST STORAGE TERMINAL The latest storage asset in the Port of Fujairah for middle distillates & fuel oil also has one of the fastest flow rates

THE RISE OF THE FAKE TERMINAL Port of Rotterdam officials have acted to counter the growth of fake terminals

REGIONAL FOCUS: MIDDLE EAST

The voice of the storage terminal industry

Front cover courtesy of CST Industries

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

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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 2018 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.

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04

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

Pasadena Tank Corporation

CONTRIBUTORS

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05

COMMENT

The agile terminal

T

here is no denying that the storage sector is experiencing challenging times at the moment.

A backwardated market and a low oil price unfortunately has that effect as the incentive to store oil has dramatically reduced.

But it is always worth remembering that storage exists for other reasons besides market fluctuations – they don’t call it a stable and steady business for nothing.

However, the requirements from customers have changed – not only has demand for different blending options increased, but customers are now expecting greater flexibility from a storage terminal. These evolving demands have given rise to the need for an agile and adaptable terminal.

And one of the best ways for operators to achieve this in a cost-effective way whilst maintaining operational integrity is through technology. Digitalisation, IoT, cloud, robotics – these are definitely not new concepts in business, however their potential to transform terminal processes and operations to make them safer and more reliable is only just starting to be realised.

Digitalisation represents the dawn of a new age for operators and is a way of taking business to the next level and bring it not only into the 21st century, but also future proof it for years to come.

At its Global Users Exchange, Emerson Automation Solutions’ executive president Mike Train said that companies are looking to technology to reinvent them-

06

selves as they look to take the next step towards game-changing performance.

The Fujairah Oil Industry Zone has become the first commercial player in the energy sector to implement a blockchain network to improve transparency, efficiency and manage risk. It ultimately improves security for market players in Fujairah who submit weekly inventory levels.

In Fujairah, despite a drawdown in inventory levels, storage operators still see opportunities ahead in the region.

We speak exclusively to Brooge Petroleum and Gas Investment Company about its new terminal in Fujairah. We also find out more about Renish Group’s plans to build more capacity for Class A products at its Alaska International storage terminal in Hamriyah, UAE as well as looking at Indian Strategic Petroleum Reserves’ impressive underground storage caverns.

This edition of the magazine is the official publication for the NISTM show in Florida, US and will also be distributed at the FPS Expo in Liverpool, UK. The Tank Storage Magazine team will be at both events, so we look forward to seeing your there.

I hope you enjoy the read.

With best wishes,

Jasmin

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

COMMENT

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APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

07

TERMINAL NEWS

All the latest terminal storage news from around the globe

17 Platts deploys Blockchain for Fujairah storage data

11 Oban Energies given approval for Bahamas oil storage terminal

14 Vesta Terminals to grow storage capacity at Port of Antwerp

the americas

EUROPE

09 Vancouver Oil Terminal permit denied

13 Vopak expands Singapore storage & reports 2017 financials

Avant Energy to build network of Mexican storage terminals

14 Vesta Terminals to grow storage capacity at Port of Antwerp

MEG Energy sells pipeline & storage terminal assets

10 Tallgrass Energy & Silver Creek to develop pipeline system

EnCap commits $400 million to new midstream infrastructure company

Delek Logistics & Green Plains form light products terminallingcompany 11 Oban Energies given approval for Bahamas oil storage terminal Shell Midstream reports strong financials

US has highest storage capacity globally

12 New fuel storage terminal approved for US airport

Stolthaven Terminals reports steady financials

Odfjell continues to perform despite challenging markets

15 Valero to buy SemLogistics Milford Haven storage terminal 16 Alpha Terminals to build storage terminal in North Sea Port

Andeavor acquires Delek asphalt terminals

USD Group to build two additional storage terminals

Africa & middle east 17 Historic hydrocarbon agreement between India & Abu Dhabi

Platts deploys Blockchain for Fujairah storage data

Vopak to expand Jakarta storage capacity

Asia 19 Vopak to expand Jakarta storage capacity

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

CONNECT WITH US 08

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

TERMINAL NEWS l THE AMERICAS

TERMINAL NEWS THE AMERICAS

Vancouver Oil Terminal permit denied

Washington governor has rejected Tesoro Savage’s application to build a new oil terminal at the Port of Vancouver.

G

overnor Jay Inslee agreed with state regulators to build the 360,000 barrel per day crude-by-rail uploading and marine loading facility.

The decision follows a lengthy evaluation process by the state’s Energy Facility Site Evaluation Council, which voted last year to deny the permit.

Inslee said several issues compelled his decision, including seismic risks, the inability to sufficiently mitigate oil spill risks, and the potential safety risks of a fire or explosion.

He says: ‘The council has thoroughly examined these and other issues and determined that it is not possible to adequately mitigate the risks, or eliminate the adverse impacts of the facility, to an acceptable level.’

Inslee also noted that the application was ‘unprecedented both in its scale and the scope of issues it raised’.

In a statement Vancouver Energy (Tesoro Savage) says it is disap-

pointed with the decision and that it forgoes the opportunity to ‘bolster America’s energy security by providing state-of-the art infrastructure that enables environmental benefits and a cleaner energy future’.

The company adds: ‘The endorsement of the Energy Facility Site Evaluation Council’s faulty recommendation by Governor Inslee is setting an impossible standard for permitting new energy facilities in the state.

‘After over four years of study and tens of millions of dollars, the Vancouver Energy facility and associated state-of-the-art facilities would have been far superior and more robust with regard to the potential for an earthquake or oil spill, than the crude oil trains that are already moving through the state every day and virtually all existing infrastructure in Washington.

The company has 30 days to appeal the decision, and it says that it is currently evaluating its options.

It is not possible to adequately mitigate the risks, or eliminate the adverse impacts of the facility

Avant Energy to build network of Mexican storage terminals

MEG Energy sells pipeline & storage terminal assets

Avant Energy will spend $200 million to build a network of terminals to supply refined petroleum products from Tamaulipas to the Bajio region of north-central Mexico.

Wolf Midstream is buying MEG Energy’s 50% stake in Access Pipeline and its Stonefell terminal for $1.61 billion.

This network of terminals will be known as Supera, short for Suministro de Petroliferos Altamira–Bajio.

Avant Energy is working on this development with US logistics group Savage Companies and rail operator Kansas City Southern de Mexico.

The network will provide an efficient logistics solution for companies to supply refined products from the US to several cities in the Bajio region. It will initially consist of a marine terminal and an inland terminal developed simultaneously and involving an investment of $200 million.

The marine terminal will be located in the Port of Altamira and will be capable of unloading Panamax size vessels and providing storage for up to 1.2 million barrels of refined products. It will facilitate rail access to the Bajio region via an interconnection with the existing KCSM railroad.

The initial inland terminal will comprise a storage and dispatch facility in Queretaro with direct connection to the KCSM system. This terminal is being designed to receive unit trains with a storage capacity of 450,000 barrels.

Both the marine terminal and the inland storage facility are expected to commence construction during the third quarter of 2018, and start commercial operation before the end of 2019.

Luis Farias, CEO of Avant Energy, says: ‘We are proud to develop this unique infrastructure network that provides superior logistics solutions to connect the high growth Bajio region with the US Gulf Coast, the largest and most efficient market in the world for refined products.

‘The energy reform has allowed new players such as Avant Energy to participate in open markets, which will allow increased efficiencies to the supply chain and ultimately benefit the customer.’

With this acquisition, Wolf will become the 100% owner and operator of Access after it acquired 50% of the business in October 2016.

As part of the deal, MEG and Wolf have entered into an agreement dedicating MEG’s Christiana Lake production and condensate transport to Access Pipeline for an initial term of 30 years.

The pipeline transports blended bitumen and diluent between the Christina Lake area of Northeastern Alberta and Edmonton.

Additionally, the transaction also includes an agreement for the Stonefell terminal, which is a 30-year arrangement that secures MEG operational control and exclusive use of the terminal’s 900,000-barrel blend and condensate storage facility.

Gord Salahor, World’s CEO, says: ‘With this transaction, Wolf will be well-positioned to expand Access Pipeline’s capacity for both bitumen blend and diluent to serve its two core customers and third-parties, as well as extend service through the unutilised 16-inch pipeline, now made possible through 100% ownership.’

Bill McCaffrey, MEG’s president and CEO, says: ‘The divesture of our midstream assets strengthens our financial position while providing sufficient liquidity to allow MEG to complete its high return growth projects.’

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

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TERMINAL NEWS l THE AMERICAS

Tallgrass Energy & Silver Creek to develop pipeline system Tallgrass Energy Partners and Silver Creek Midstream plan to develop a joint venture pipeline to transport crude oil from the Powder River Basin to Guerney, Wyoming.

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he Iron Horse Pipeline will connect Silver Creek’s developing gathering system to the Tallgrass Guernsey Terminal, which is currently under construction, and then to Tallgrass’s Pony Express crude pipeline system, and other pipelines at Guernsey.

Iron Hose and Pony Express intend to create a joint tariff to offer producers and marketers a single rate and direct access to the multiple refineries on Pony Express and to the Cushing, Oklahoma crude oil hub.

Tallgrass has also agreed to sell its 50-mile PRB crude oil gathering system to Silver Creek. Tallgrass and Silver Creek expect to close the formation of the joint venture and the sale of Tallgrass Crude Gathering later in February.

Andeavor acquires Delek asphalt terminals Andeavor has acquired Delek US Holdings’ West Coast asphalt terminals for $75 million.

The assets include four wholly-owned terminals in Elk Grove, Bakersfield and Mojave in California and Phoenix in Arizona, as well as a 50% interest in the Paramount Nevada Asphalt Company joint venture in Fernley, Nevada.

Andeavor expects to grow this new addition to its asphalt business to serve more customers and expand its product offering. Andeavor expects to improve the business and increase sales by 20% over the next three years.

The acquisition will bring Andeavor’s total asphalt capacity to more than 430,000 tonnes across ten terminal locations.

The deal is expected to close in the first half of 2018.

Keith Casey, executive vice president of commercial and value chain for Andeavor, says: ‘We are excited to leverage our experience to grow our asphalt offering in the West Coast and Southwest regions.

‘We expect this investment to drive higher integrated margins across the value chain, offset impacts created by bunker fuel specification changes and improve the value of heavy resid produced at our refineries.’

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As a result of the acquisition and the announced projects, Silver Creek will be positioned as the preeminent crude oil gathering company in the PRB. J. Patrick Barley, found and CEO, says: ‘Silver Creek is extremely excited to work with Tallgrass in the PRB. Their current presence in the basin and long-haul crude transport capabilities bring a competitive advantage to Silver Creek as we work to fully build our gathering system.’

Tallgrass anticipates it will invest $150 million into this initiative.

EnCap commits $400 million to new midstream infrastructure company EnCap Flatrock Midstream has committed $400 million to Lotus Midstream, a new crude oil infrastructure development company.

The company, established in early 2018, is focused on the organic development of midstream infrastructure and services to transport crude oil and condensate from the wellhead to market, including crude gathering, transportation and storage.

Led by Mike Prince, CEO, Emily Baker, chief commercial officer and Jen Fontenot, chief operating officer, the company is also pursuing strategic acquisition opportunities.

Prince says: ‘We look forward to building Lotus Midstream with a focus on high growth areas in the Permian Basin and the Midcontinent, where we see multiple opportunities and have an established track record, a thorough knowledge base and strong relationships.’

Delek Logistics & Green Plains form light products terminalling company Green Plains Partners and Delek Logistics Partners have forms DKGP Energy Terminals, a joint venture in the light products terminalling business.

The 50/50 joint venture company signed a membership interest purchase agreement to acquire two light products terminals from an affiliate of American Midstream Partners for $138.5 million.

These terminals are located in Caddo Mills, Texas and North Little Rock, Arkansas. The transaction is expected to close in the first half of 2018.

DKGP will comprise these acquired assets as well as assets contributed by Delek Logistics, with a total value of $162.5 million.

Immediately prior to the closing of the acquisition by the joint venture of American Midstream’s assets, Delek Logistics will contribute to the joint venture its North Little Rock, Arkansas terminal and its Greenville tank farm in Caddo Mills, Texas.

Uzi Yemin, chairman and CEO of Delek Logsitics’ general partner, says: ‘We are excited to partner with Green Plains Partners for its potential ethanol volumes, logistics expertise and industry knowledge as the domestic markets expand blending.

‘This is a great opportunity as it fits our strategy to grow through assets in the markets that we are very familiar with, and by contributing our complementary existing logistics assets in east Texas and Little Rock, we expect to create additional synergies within the joint venture.’

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

TERMINAL NEWS l THE AMERICAS

Oban Energies given approval for Bahamas oil storage terminal The government of the Bahamas has approved Oban Eanergies plans to build an oil refinery and storage facility in Grand Bahama.

T

he $4 billion project will provide storage for crude oils, residual fuel oils, middle and light distillates, specialty vegetable oil and heavy oils.

It will have an initial capacity of four million barrels and will comprise a harbour, and deep sea-loading docks to service large vessels as well as the construction of a 50,000 barrel per day refinery.

Prime Minister Dr. the Hon. Hubert Minnis says: ‘We are on the road to revitalising both Grand Bahama and the entire Bahamas.

‘Oban will build [an] up to 20 million barrel liquid bulk storage facility and a 250,000 barrel per day refinery. The oil refinery has an estimated project cost of up to $4 billion and the terminal has an estimated cost of $1.5 billion.

‘This is a very significant development for Grand Bahama.’

Shell Midstream reports strong financials Shell Midstream Partners has reported strong fourth quarter 2017 financial results as it concluded an important growth year.

The growth-oriented mainstream company reported net income of $86.4 million, compared to $72.6 million from the prior quarter, driven by the acquisition of Triton West and an EBITDA of $118.7 million, an increase of 28.5% from the third quarter.

During the quarter, the partnership completed the acquisition of strategic infrastructure assets from Shell for $825 million – representing its largest acquisition to date. As part of the acquisition, it also acquired Triton West, which owns five refined products terminals in the Pacific Northwest, Midwest and Gulf Coast.

John Hollowell, CEO, Shell Midstream Partners, says: ‘This was an important year for Shell Midstream Partners. We continued to deliver against our strategy, taking steps to diversify our portfolio, both in terms of asset classes and geography, all while sustaining our growth promises.

‘Specifically, we acquired approximately $1.5 billion of assets from Shell – all high quality, strategic midstream assets that play an integral role in connecting North America’s energy infrastructure.’

US has highest storage capacity globally The US has the highest amount of liquids storage capacity globally, followed by Indonesia and China.

According to GlobalData, the US has 2,162 million barrels of capacity, followed by Indonesia with 2,014 million barrels and China, with 660 million barrels.

This means that the US accounts for 26% of the total global liquids storage capacity. According to the data and analytics company, it is expected to add capacity of 46 million barrels from 21 planned and announced storage terminals between 2018 to 2021.

Indonesia, with a 24% share in the global liquids storage capacity, plans to add an additional 54 million barrels from four planned and announced terminals during the same period.

However, even though China contributes 8% towards to the total global storage capacity, a total of 10 planned and announced terminals in China are expected to add a capacity of 66 million barrels until 2021.

The fourth major contributor with Japan, with 354 million barrels, followed by South Korea, with 231 million barrels.

The Netherlands accounts for 3% of global storage capacity with 218 million barrels in 2018.

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

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TERMINAL NEWS l THE AMERICAS

New fuel storage terminal approved for US airport

USD Group to build two additional storage terminals

A new $50 million jet fuel storage facility for the St. Louis Lambert International Airport to replace the current fuel facility.

The USD Group is expanding its network of refined products terminals with an additional two facilities in Central Chihuahua, Mexico.

STL Fuel Company, a consortium of airlines that manages, maintains and operates the existing system, which dates back to 1957, was given approval by the City of St. Louis to construct a more modern, environmentally-friendly fuel storage facility.

The replacement facility will be located on nearly eight acres of airport-owned property and will comprise three 722,000 gallons of aboveground fuel storage tanks and associated pumps, filters and other equipment, with a total minimum usable storage capacity of 1.89 million gallons. It also has room for expansion beyond that capacity.

The age of the current infrastructure, along with new environmental regulations affecting all fuel storage facilities led to the decision by the airline consortium to build a replacement facility.

Once the design is complete the company will have two years to complete the project, which will include building a fuel transfer line from the facility to the airport’s terminals, which then routes the fuel to each airline gate.

Once construction is complete STL will close and decommission the existing fuel storage facility.

Jim Stevenson, Southwest Airlines fuel category manager and chairman of STL Fuel Company, says: ‘This major capital project being undertaken by STL Fuel Company will allow us to build a replacement fuel storage facility that will be cleaner for the environment, safer for the operators, more cost-efficient for all users, and will result in state-of-the-art, robust infrastructure that will reliably take us into the future.’

The Ciudad Cuauhtémoc terminal development is expected online by mid-2018 and will include manifest rail and truck transloading capabilities, as well as land for expansion.

Additionally, the company is formalising plans for a second refined products distribution terminal in the Central Chihuahua area, which will feature unit train, tank storage and truck loading capabilities.

The planned terminals are expected to ‘meaningfully improve the distribution of refined products across the state of Chihuahua, which includes approximately two million residents and one of Mexico’s most concentrated and productive agricultural and mining hubs.

Steve Magneess, vice president, business development, says: ‘Along with the Querétaro terminal, our expansions into the Central Chihuahua area demonstrates our commitment to improving the delivery of critical products across the region.

‘We believe our network of scalable terminals will enable our customers to more efficiently meet the rapidly growing demand for refined products in Mexico.’

Both terminals will be serviced by Ferromex railroad, a subsidiary of Grupo Mexico Transportes, with access to all North American Class 1 railroads.

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APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

TERMINAL NEWS l EUROPE

TERMINAL NEWS EUROPE

Vopak expands Singapore storage & reports 2017 financials Vopak is adding 67,000 m3 of marine gasoil storage at its Sebarok terminal in Singapore to strengthen its position as a bunker hub.

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explore and find new possibilities within the his expansion will allow the terminal LNG infrastructure market, to expand our role to flexibly handle multiple fuels as a as a service provider in the LNG value chain. result of the IMO’s global sulphur cap, ‘We have taken strategic decisions which will come into effect in January 2020.

This follows Vopak’s earlier announcement to expand capacity for petrol and biofuels at its Jakarta Tank Terminal.

Additionally, the storage company reported its 2017 financials, with an EBITDA of €763 million, a decrease of 4% compared to 2016.

It recorded an occupancy rate of 90%, compared to its 2016 occupancy rate of 93%m primarily as a result of less favourable oil market structures.

Its worldwide storage capacity increased by 1.2 million m3 to 35.9 million m3. Projects currently under development will add 3.1 million m3 of storage capacity by 2019.

The company expects its 2018 performance to be influenced by currency exchange movements of the US dollar and the Singapore dollar, and the currently less favourable oil market structure, which is having an impact on occupancy rates and price levels in hub locations.

It says in its financial reports that with its current expansion programme and its cost efficiency programme, it has the potential to significantly improve its 2019 EBITDA. Eelco Hoekstra, chairman of the executive board and CEO, says: ‘We aim to identify and seize growth opportunities swiftly, ensure timely completion of projects under development and step up the global roll-out of our new digital systems.

‘Vopak’s growth strategy is directed towards chemical www.midwest-steel.com terminals and gas markets, PHONE (713) 991-7843 while facilitating the increasing demand for fuels in emerging countries. We will continue to

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regarding technology, and we are making substantial investments to deliver the full benefits of the digital transformation in future years to our customers and shareholders.’

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APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

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TERMINAL NEWS l EUROPE

Vesta Terminals to grow storage capacity at Port of Antwerp Vesta Terminals will expand storage capacity at its Antwerp facility and add two additional barge berths.

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he project comprises an additional 150,000 m3 as well as two additional barge berths.

This project will involve demolishing parts of its current infrastructure and replacing it with larger thanks. The capacity will handle mainly middle distillates, light ends and heavy fuels.

Other storage projects are also progressing at the Port of Antwerp, which is looking to optimise current infrastructure as well as focus on new emerging markets, such as LNG and LPG. Ineos, Oiltanking Antwerp Gas Terminal (OTAG) and TGE have broken ground on the world’s largest LPG storage tank at the port.

Once complete, OTAG will be the largest independent gas terminal in North-West Europe.

Antwerp Terminal and Processing Company broke ground on the construction of a LPG and ethane storage facility in September 2017.

ITC Rubis has finished the construction of a new tank pit park, with two 10,000 m3 tanks.

Noord Natie Terminals are building additional storage capacity. The stainless steel tank fields N&O with a total capacity of 32,700 m3 will be operation by the end of the third quarter. The company is continuing to increase capacity until mid-2022.

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Stolthaven Terminals reports steady financials Stolthaven Terminals achieved a slight increase in operating revenue thanks to higher storage and throughput revenue.

The company reported operating revenue of $61.4 million in its fourth quarter financials, compared with $61 million in the third quarter. However, higher storage and throughput revenue was partially offset by lower demand for steam and nitrogen services in Houston, and by lower US rail freight revenue.

It reported fourth quarter operating profit of $5.4 million, down from $16 in the third quarter. This decrease includes an $8.4 million one-time impairment of assets at its New Zealand facility, resulting from the forthcoming expiration of land leases at two sites and the impact of weaker local market conditions and lower equity income from the company’s joint venture terminals in Lingang, China and in Antwerp.

Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen, says: ‘Stolt-Nielsen’s fourth quarter results reflected the negative impact of one-time charges related to impairments and extraordinary events.

‘Except for the effects Hurricane Harvey had on Stolthaven Houston, our terminal business had another steady quarter.

‘Our outlook for the first half of 2018 remains essentially unchanged. For Stolthaven Terminals, we continue to expect a modest but steady improvement in results, driven by operational improvements and better utilisation.’

For Stolthaven Terminals, we continue to expect a modest but steady improvement in results, driven by operational improvements and better utilisation

Odfjell continues to perform despite challenging markets Odfjell Terminals has delivered increased financials in its fourth quarter 2017 results due to higher occupancy and revenues at its Houston terminal.

The terminal division delivered an EBITDA of $9.8 million in Q4 2017 compared to $8.7 million in the previous quarter. The increase is mainly attributed to higher storage revenues in Houston thanks to higher occupancy and other services. Additionally, Odfjell’s Q3 results were negatively impacted by Hurricane Harvey.

Total average available capacity amounted to 2.89 million m3 – an increase of 81,000 3 m thanks to the return to service of tanks in Rotterdam following completion of outfitting upgrades and maintenance.

The company says in an update that distillation activities at its Rotterdam terminal continues to report stable results and counters the negative market effects for conventional storage at the terminal.

Its second half year 2017 revenues for its PID reached €15 million compared to €12 million in its first half 2017 result. Tank storage at the terminal dropped to €14 million from €18 million in the same period.

However, the terminal benefits from a unique benefit in light of the upcoming 2020 low sulphur emission regulations, where it can produce and supply compliant fuel.

Overall, Odfjell SE reported an EBITDA of $41 million, compared to $37 million in the previous quarter.

Kristian Mørch, CEO Odfjell SE, says: Our markets have remained challenging in 4Q, but Odfjell continues to make good progress.’

He adds that the company expects storage demand for oil minerals to remain challenging, but expects stable demand and results for chemical storage.

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

TERMINAL NEWS l EUROPE

Valero to buy SemLogistics Milford Haven storage terminal Valero and SemGroup Europe have signed an agreement for Valero to purchase the SemLogistic’s Milford Haven fuel storage facility in the UK.

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he facility, located across the Haven from Valero’s refinery at Pembroke, Wales, is one of the largest petroleum products storage facilities in the UK. It comprises 8.5 million barrels of capacity for storing petrol, petrol blendstocks, naphtha, jet fuel, gas oil, diesel and crude oil.

The facility will continue to operate as a third-party storage facility, offering storage options for third-party customers across the European petroleum markets. More than 67% of the capacity is multiproduct, giving Valero the flexibility to meet customers’ demands in the UK and throughout northwest Europe.

The purchase is expected to be completed in the third quarter of 2018.

Joe Gordor, Valero chairman, president and CEO, says: ‘This facility complements our Pembroke refinery and fuel terminals in the UK and Ireland making it a natural fit for the company.

‘This purchase demonstrates Valero’s commitment to Wales and the UK, and it aligns with our strategy to grow the logistics business and reduce secondary costs.’ adaptacio-anunci-tepsa-2.pdf

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TERMINAL NEWS l EUROPE

Alpha Terminals to build storage terminal in North Sea Port A €250 million liquid bulk terminal will be built in the Vlissingen area of North Sea Port by Alpha Terminals.

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he terminal will have a capacity of 500,000 m3 spread across 34 tanks and will store various kinds of liquid bulk from chemicals and oils to oil products and future generation sources of energy such as ammonia.

It will provide an additional five to seven million tonnes of liquid bulk per year. Additionally, a jetty is planned for the loading and unloading of various seagoing and inland vessels at the same time.

It will be built at the mouth of the Sloehaven on a site that has a surface area of over eight hectares.

It is expected that construction works will start next year after all necessary permits are applied for in 2018. It is expected to take two years to build and it could be operational by 2020.

North Sea Port says in a statement: ‘North Sea Port is looking forward to the realisation of the tank terminal by this Swiss investor. It is the first time that this Swiss group is active in the port. Moreover, with this increase in its traffic, North Sea Port is improving its already strong position in the liquid bulk sector.’

Currently, liquid bulk takes up one third of the port’s seaborne cargo traffic.

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TERMINAL NEWS l AFRICA & MIDDLE EAST

TERMINAL NEWS AFRICA & MIDDLE EAST

Historic hydrocarbon agreement between India & Abu Dhabi A historic agreement has been inked giving a consortium of Indian oil and gas companies a stake in Abu Dhabi’s hydrocarbon resources.

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is Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and His Excellency Narendra Modi, Prime Minister of India, signed the agreement awarding a consortium of Indian oil companies a 10% interest in Abu Dhabi’s offshore Lower Zakum concession.

This agreement marks the first-time Indian oil and gas companies have been given a stake in Abu Dhabi’s hydrocarbon resources.

Prime Minister Modi says: ‘The offshore concession in favour of the Indian consortium

has taken our bilateral engagement in the oil and gas sector to a new level, which befits the comprehensive strategic partnership between our two countries. I am happy to note that we have progressed from a buyer-seller relationship to an era of mutual investments in the oil and gas sector.’

The consortium contributed a participation fee of $600 million to enter the concession.

The agreement has a term of 40 years.

Alongside this, ADNOC and the Indian Strategic Petroleum Reserves (ISPRL) also

agreed to implement the strategic crude oil storage facility, in the southern Indian city of Mangalore. The partnership with ISPRL, an Indian government-owned company mandated to store crude oil for strategic needs, covers the storage of 5.86 million barrels of ADNOC crude oil in underground facilities, at the Karnataka facility.

The storage facility will help ensure India’s energy security, as well as enable ADNOC to competitively meet market demand in India and across the south east Asian economies.

Platts deploys Blockchain for Fujairah storage data S&P Global Platts has deployed a Blockchain network to allow market participants at Fujairah to submit weekly oil inventory storage.

The full scale commercial deployment of the Blockchain distributed ledger technology allows the 11 terminal operators to submit their data to Fujairah Oil Industry Zone (FOIZ) and the regulator, FEDCom. This offers FOIZ and its port operators security, together with ease of use, and a full audit trail to collate weekly inventory oil products storage data.

The network improves the manual and unstructured process by which the terminal operators previously communicated their weekly inventory numbers of FEDCom. • Reduce the burden of manual data management for both FEDCom and the terminal operators • Dynamic display of reported numbers at an aggregated or individual operator level • Improve report quality by automatically validating numbers with predefined criteria and aggregating numbers, avoiding human input • Simplifying the certification of asset ownership • Improving security of data transmission and storage FEDCom will have sole access to all

individual terminal operator numbers and will submit only the approved, aggregated weekly numbers to S&P Global Platts for global distribution.

Sohail Iqbal, member development committee, FOIZ & Captain Salem Al-Hmoudi, member FEDCom, says: ‘The innovation represents the next step forward in Fujairah’s ambitions to become a global hub for commodity trading. It will allow our terminal operators to be at the forefront of technology while at the same time operating at the highest level of security.’

Mamdouh Malek Azizeh, commercial director, Fujairah Oil Terminal, adds: ‘Blockchain innovation will allow Fujairah’s terminal operators such as us to deliver operations in a more efficient and secure environment. We are delighted to take part in this process, which will allow Fujairah Oil Terminal to increase operational efficiency and data management security. The technology will allow us to deliver results under a secure and no risk environment, which are seminal to the energy industry.’

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APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

TERMINAL NEWS l ASIA

TERMINAL NEWS ASIA

Vopak to expand Jakarta storage capacity Vopak plans to build an additional 100,000 m3 of storage capacity for petrol and biofuels at its Jakarta terminal.

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he expansion of the Jakarta Tank Terminal will take total tank capacity at the facility to more than 350,000 m3.

The project will comprise eight additional tanks for petrol, ethanol and biodiesel, a vapour recovery unit and additional (in-line) blending infrastructure, which will allow its customers to comply with Indonesia’s Biofuel Blending Mandate regulations.

Jakarta Tank Terminal, a JV between Vopak and PT AKR Corporindo, is strategically located in Tanjung Priok, the main port of Jakarta and serves the import and distribution market in the greater Jakarta region for fuel products.

Demand for tank storage facilities is expected to increase both with the expansion of petrol distribution by existing players as with the market entry of new players.

The expansion is expected to be commissioned in phases from the first quarter to the fourth quarter 2019.

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

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INCIDENT REPORT

INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 17/2/18

19/2/18

Erie, Colorado

Commerce City, Colorado

Anadarko Petroleum

United Asphalts

A hydrocarbons spill near some tanks resulted in the evacuation of contaminated soil. It has been reported than more than 200 gallons spilled and contaminated soil in a farm field near housing, however workers quickly removed the affected soil and informed state regulators.

A storage tank ignited, sending flames as high a 15-feet into the sky. Firefighters quickly tackled the blaze and brought it under control. There were no evacuations and no injuries reported.

18/2/18

West Fargo, North Dakota 18/2/18

Yukon, Oklahoma Centurion Pipeline Oil spilled from a burst pipeline into a pond.

Workers from the company responded quickly to the incident and contained the spill.

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Magellan Midstream Partners Firefighters quickly extinguished a fire which ignited at the base of a fuel oil storage tank. A passerby noticed flames at the base of one of the large tanks, however it was discovered that it was a nonpressurised tank and there were no concerns about an explosion.

Fire crews from West Fargo and Fargo tackled the blaze along with specialist crews from Grand Forks Air Force Base and Hector International Airport.

APRIL/MAY 2018 VOLUME 14 ISSUE NO.2

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