GREENER & CLEANER
What goes into IMTT’s green strategy? Find out inside
LNG PAUSE
Explore the global impact of President Biden’s LNG export approvals pause
ENERGY TRANSITION IN USA
Discover how Vopak Exolum Houston is planning for the green transition
Europe’s leading bulk liquid logistics provider exolum.com
44 Expectations for the Next Legislative Mandate
FETSA’s executive director Ravi Bhatiani discusses the groups expectations for the EU’s emissions targets and energy transition efforts
46 Statement on US LNG Export Approvals Pause
US LNG exports are a critical part of energy systems across Asia Pacific – and are needed to provide energy security and support the energy transition for decades to come
47 Creating a Reliable Renewable Hydrogen Supply
The experts at ICIS discuss how renewable hydrogen is impacting tank storage
48 Global Hydrogen Corridors: Essential Pathways to Decarbonisation
Barend van Schalkwyk, business development director at OCI Global explores the impact of global hydrogen corridors on decarbonising energy-intensive industries
54 Technical News
56 Leveraging Incentives to Lower Emissions
Ahead of speaking at ILTA 2024, Haley Armstrong and Ethan Spira from AJW Inc explore how terminal operators need to adapt in the changing environmental scope
58 Reducing Emissions Across Facilities
Assentech Sales’ founder Ewart Cox reflects on the company’s gold win at the Global Tank Storage Awards
60 Aboveground Storage Tank Settlement Evaluation
Katelyn Gustoff, consulting engineer, and Derek Slovenec, senior engineer, from The Equity Engineering Group explore this threat to asset integrity
64 Norway’s Leading Role in Crude Oil Vapour Recovery
The experts at Diamond Key International take a closer look at Equinor’s innovative Njord Bravo Floating Storage Unit and its vapour recovery system
66 The Key to Digitalise Global Marine Terminal Operations
Gonzalo Mera Truffini, vice president of The Latin American Society of Maritime Oil Terminals and SBM Operators (SLOM) explain how Maritime Assurance 2.0 is helping shippers better serve storage clients
68 What Tank Storage Needs To Know About Going Digital
Editor Anamika Talwaria looks into the benefits and drawbacks of increased digitalisation for critical infrastructure – and how tank storage can protect itself
50 Global Tank Storage Awards
On 12 March 2024, the tank storage industry gathered to celebrate excellence and innovation in the sector – read on to find out who won
72 Event Review: StocExpo 2024
Tank Storage Magazine takes a look back into the cutting edge of tank storage and energy infrastructure
79 Event Review: IE Week
Get the scoop from International Energy Week, taking place in London on 27-29 February
80 Event Review: NISTM Orlando
Find out the latest innovations from NISTM’s 26th Annual International Aboveground Storage Tank Conference and Tradeshow
81 Event Calendar 2024
ATMOSPHERIC
PRESSURE SPHERES
LOW TEMPERATURE
CRYOGENIC TERMINALS
ANAMIKA TALWARIA
Anamika is the editor for Tank Storage Magazine. As well as chairing the Women in Tanks panel at StocExpo, Anamika curates all the fantastic content in every edition and online. This edition, she’s put together a magazine filled with exclusive articles from across Europe and North America, especially for our readers across the pond.
CONTACT
T +44 (0)20 3196 4300
F +44 (0)20 8892 1929 anamika@tankstoragemag.com www.tankstorage.com
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Storage Tank Experts:
3 Tank Engineering and Design per API 650, API 620, AWWA D-100 & NFPA
3 Tank Fabrication
3 Field Erection
3 Maintenance, Repair & Modifications per API 653
3 Tank Design, Fabrication & Packaging for Export
EVENT SEASON is well-and truly underway. Many readers will be taking this copy of the magazine out of their delegate bags at ILTA (6-8 May, Houston, Texas) and thumbing through for updates on President Biden’s LNG ban and how it’s impacting the rest of the world (page 46), exclusive interviews with ILTA speakers such as Melanie Landry at IMTT (page 42) and AJW Inc (page 56)
On top of this, we’ve also got exclusive interviews with the team behind Exolum’s foray into the USA (page 30), the story behind Essar Oil’s move to Essar Energy Transition (page 40) and Women in Tanks stories from BP’s Heather Legan (page 38) and Kathy Stewart at Vopak (page 76)
The TankStorageMagazine team has been busy attending trade shows all across the globe – from our flagship event StocExpo (which you can read all about on page 72) to NISTM’s Orlando event in Florida – with trips across the UK in between. It’s very likely that, as you read this, we’ll be at yet another event, whether it’s the ILTA conference and tradeshow, World Hydrogen Summit in the Netherlands, PGLC in Spain or ChemUK back home.
The truth is, while we all love the jet-setting, sometimes there’s nothing better than being in the comfort of your own home. But household comfort can vary wildly depending on income, location and the state of your country’s energy security. The energy trilemma, and access to sustainable, affordable, stable, energy is a key theme across this issue. Covered extensively at both StocExpo and IE Week in the UK, it’s clear that this is going to be a major challenge for the tank storage industry moving forward.
While the EU’s response seems to be more regulation, the US looks to be utilising financial incentives. I’m looking forward to seeing how our colleagues across the pond plan to tackle this and can’t wait to engage in these types of in-depth discussions with you all. Failing that, I’m sure I can find at least one tank operator that’s watched Ted Lasso!
The TankStorageMagazine team will be on booth 1148 during ILTA’s trade show, so do come along and say hello. If you don’t know what I look like… well, my picture is in the magazine so just look for the girl in the photo!
I’ll also be attending the conference and Women in Terminals networking reception, on the hunt for new women to interview and platform in our magazine – so, again, please come and find me or get in touch if you’d like to have your story shared.
If you’re not US-based, there’s plenty of opportunities to connect with our team this summer at all the events I’ve already mentioned. If you’re London-based (or close enough) let’s connect for a coffee, or something stronger, and you can tell me all about your terminal’s plans for the future, what you love (or don’t like so much) about our magazine, and how you’re planning to beat the British weather this summer.
Best wishes,
Anamika01 Chairing the Women in Tanks panel discussion at StocExpo 2024
02 Meeting the industry at IE week
03 Josh Lyle and I travelled to Florida for NISTM this April
MAKING THE BEST EVEN BETTER REDUCES INSTALL TIME & EMISSIONS
LOCK-IN-PLACE FABRIC ATTACHMENT SYSTEM
ClipLockTM is the new fastener-free lock-in-place fabric attachment system from Mesa ETP that makes installing WG floating roof seals faster, easier, and safer for the in-staller while reducing emissions!
CLIPLOCK TM LOCK-IN-PLACE PROPRIETARY FABRIC ATTACHMENT SYSTEM
• Installs in half the time of conventional seals
• Dramatically reduces product loss and emissions
• One-piece boltless system for complete contact along 100% of tank perimeter
• Easily detached and reattached for quick inspections
MAKES THE BEST PRIMARY FLOATING ROOF SEAL TECHNOLOGY EVEN BETTER.
MAKES THE BEST PRIMARY FLOATING ROOF SEAL TECHNOLOGY EVEN BETTER.
CLIPLOCK TM LOCK-IN-PLACE PROPRIETARY FABRIC ATTACHMENT SYSTEM
CLIPLOCK TM LOCK-IN-PLACE PROPRIETARY FABRIC ATTACHMENT SYSTEM
MAKES THE BEST PRIMARY FLOATING ROOF
SEAL TECHNOLOGY EVEN BETTER.
Each shoe plate section features a pre-attached bracket. No fasteners or tools are required.
MAKES THE BEST PRIMARY FLOATING ROOF SEAL TECHNOLOGY EVEN BETTER.
Each shoe plate section features a pre-attached bracket. No fasteners or tools are required.
HOW CLIPLOCK TM WORKS
HOW CLIPLOCK TM WORKS
Each shoe plate section features a pre-attached bracket. No fasteners or tools are required.
Each shoe plate section features a pre-attached bracket. No fasteners or tools are required.
ClipLock is the new fastener-free attachment system from Mesa ETP WG floating roof seals faster, easier, staller while reducing emissions!
Each shoe plate section features a pre-attached bracket. No fasteners or tools are required.
• One-piece boltless system for complete contact
It takes about 15 seconds to tuck and clip each 18-inch length of fabric. Installer simply folds seal fabric into the bracket and secures it place with a specially-designed full length spring clip.
ABOUT
THE
INSTALLS IN ABOUT HALF THE TIME
• Installs in half the time of conventional seals
It takes about 15 seconds to tuck and clip each 18-inch length of fabric. Installer simply folds seal fabric into the bracket and secures it place with a specially-designed full length spring clip.
It takes about 15 seconds to tuck and clip each 18-inch length of fabric. Installer simply folds seal fabric into the bracket and secures it place with a specially-designed full length spring clip.
INSTALLS IN ABOUT HALF THE TIME
In actual storage tank field tests, workers installed the WG shoe seal with ClipLockTM attachment system in about half the time of the conventional bolt-through cover plate design.
It takes about 15 seconds to tuck and clip each 18-inch length of fabric.
In actual storage tank field tests, workers installed the WG shoe seal with ClipLockTM attachment system in about half the time of the conventional bolt-through cover plate design.
INSTALLS IN ABOUT HALF THE TIME
Installer simply folds seal fabric into the bracket and secures it place with a specially-designed full length spring clip.
In actual storage tank field tests, workers installed the WG shoe seal with ClipLockTM attachment system in about half the time of the conventional bolt-through cover plate design.
This new modular solution lets workers spend less tank time on inservice installations. Plus, there are no small fasteners that discourage the use of required safety gloves.
This new modular solution lets workers spend less tank time on inservice installations. Plus, there are no small fasteners that discourage the use of required safety gloves.
This new modular solution lets workers spend less tank time on inservice installations. Plus, there are no small fasteners that discourage the use of required safety gloves.
SIGNIFICANTLY REDUCES EMISSIONS
TIME
In actual storage tank field tests, workers installed the WG shoe seal with ClipLockTM attachment system in about half the time of the conventional bolt-through cover plate design.
This innovative solution lets workers spend less tank time on in-service installations. Plus, there are no small fasteners that discourage the use of required safety gloves.
SIGNIFICANTLY REDUCES EMISSIONS
• Dramatically reduces product loss and emissions
• Easily detached and reattached for quick inspections
ClipLockTMreplaces the time-consuming bolt-through system that can compromise fabric integrity. The lock-in-place system features continuous fabric contact, a method that has been shown in laboratory tests to significantly reduce product emissions.
In actual storage tank field tests, workers installed the WG shoe seal with ClipLockTM attachment system in about half the time of the conventional bolt-through cover plate design.
ClipLockTMreplaces the time-consuming bolt-through system that can compromise fabric integrity. The lock-in-place system features continuous fabric contact, a method that has been shown in laboratory tests to significantly reduce product emissions.
MAKES THE BEST PRIMARY FLOATING replaces the time-consuming bolt-through system that can compromise fabric integrity. The lock-in-place system features con tinuous fabric contact, a method that has been shown in laboratory tests to significantly reduce product emissions.
ClipLockTM replaces the time-consuming bolt-through system that can compromise fabric integrity. The lock-in-place system features con-tinuous fabric contact, a method that has been shown in laboratory tests to significantly reduce product emissions.
HOW DO YOU ATTACH YOUR FABRIC?
ClipLockTMreplaces the time-consuming bolt-through system that can compromise fabric integrity. The lock-in-place system features continuous fabric contact, a method that has been shown in laboratory tests to significantly reduce product emissions.
This new modular solution lets workers spend less tank time on inservice installations. Plus, there are no small fasteners that discourage the use of required safety gloves.
Installer simply folds seal fabric into the bracket and secures it place with a specially-designed full length spring clip.
No part of the fabric seal is punched or cut to seat over bolts. Every inch of the fabric circumference is locked in place against the shoe plate for a complete seal around the entire circumference of the tank.
No part of the fabric seal is punched or cut to seat over bolts. Every inch of the fabric circumference is locked in place against the shoe plate for a complete seal around the entire circumference of the tank.
No part of the fabric seal is punched or cut to seat over bolts. Every inch of the fabric circumference is locked in place against the shoe plate for a complete seal around the entire circumference of the tank.
Complete contact with shoe plate along 100% of tank perimeter
Complete contact with shoe plate along 100% of tank perimeter
No part of the fabric seal is punched or cut to seat over bolts. Every inch of the fabric circumference is locked in place against the shoe plate for a complete seal around the entire circumference of the tank.
Complete contact with shoe plate along 100% of tank perimeter
No part of the fabric seal is punched or cut to seat over bolts. Every inch of the fabric circumference is locked in place against the shoe plate for a complete seal around the entire circumference of the tank.
A summary of the latest global tank storage news
Hans Olav Raen has been appointed CEO of Yara Clean Ammonia, effective 1 May 2024.
Raen had been Yara’s business director, heading OCI’s fertilizers business in Europe. He has more than 25 years of experience in the fertilizer industry, including 12 years with Norsk Hydro and Yara International (between 1997 and 2009), where Raen held commercial and managerial roles in Europe and Africa.
Raen holds a master’s degree from the College of Europe as well as a degree in digital leadership from the ESSEC Business School in Paris.
‘We are pleased to announce that Hans Olav will be heading Yara Clean Ammonia. Together with the strong YCA-team, I am confident that Hans Olav will support and lead the company to the next level, spearheading the rapidly growing clean ammonia business,’ says Magnus Krogh Ankarstrand, EVP corporate development at Yara International. Ankarstrand will continue as chairman of the Yara Clean Ammonia Board.
Shell has published its first energy transition update since the launch of its Powering Progress strategy in 2021. At its Capital Markets Day in June 2023, Shell outlined how its strategy delivers more value with less emissions, emphasising ‘more value’. In this energy transition update, Shell’s focus has shifted to how the same strategy delivers ‘less emissions’.
‘Energy has made an incredible contribution to human development, allowing many people around the world to live more prosperous lives. Today, the world must meet growing demand for energy while tackling the urgent challenge of climate change. I am encouraged by the rapid progress in the energy transition
in recent years in many countries and technologies, which reinforces my deep conviction in the direction of our strategy,’ says Wael Sawan, Shell’s CEO.
Shell has made good progress against its climate targets:
• By the end of 2023, Shell had achieved more than 60% of its target to halve operational emissions by 2030, compared with 2016. This goes above and beyond the targets set by signatories to the Oil and Gas Decarbonization Charter agreed at COP28.
• In 2023, Shell achieved 0.05% methane emissions intensity –significantly below its target of 0.2%.
• Shell also contributed to the World Bank’s Global Flaring and Methane Reduction Fund – further supporting industry-wide action to drive down methane emissions and flaring.
• In 2023, Shell achieved its target to reduce the net carbon intensity of its energy products, with a 6.3% reduction compared with 2016.
In line with its shift to prioritising value over volume in power, Shell will focus on select markets and segments. This includes selling more power to commercial customers, and less to retail customers. Given this focus on value, the company expects lower total growth of power sales to 2030, which has led to an update to its net carbon intensity target to a 15-20% reduction by 2030 in the net carbon intensity of the energy products Shell sells, compared with 2016, against a previous target of 20%.
TotalEnergies has agreed to acquire 100% of Talos Low Carbon Solutions. After completion of the transaction, TotalEnergies will own a 25% share in the Bayou Bend project, alongside Chevron (50%, operator) and Equinor (25%).
Bayou Bend project is a major CO 2 storage project located along the Texas Gulf Coast, close to the company’s assets in the region. TotalEnergies will also own a 65% operated interest in the Harvest Bend (Louisiana) project and a 50% interest in the Coastal Bend (Texas) project.
The Bayou Bend project is a carbon transportation and storage solution for industrial emitters located in the Houston Ship Channel and Beaumont – Port Arthur region, one of the largest industrial corridors in the United States. Comprising licenses dedicated to CO 2 storage, covering about 600 km², it could enable the storage of several hundred million tonnes of CO 2
‘TotalEnergies is pleased to enter the Bayou Bend project through the acquisition of Talos Low Carbon Solutions. Ideally located close to our Port Arthur refinery and our petrochemicals assets in La Porte, this project will be instrumental for the reduction of direct emissions from our US operations,’ says Patrick Pouyanné, Chairman and CEO of TotalEnergies.
Norway United Kingdom
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Senegal
Senegal will review agreements signed with oil and gas and other resources companies to ensure they’re optimised for the state to benefit, newly elected President Bassirou Diomaye Faye has said.
The government will undertake an ‘audit of the mining, gas and oil sector that aims to strengthen the protection of local content for the benefit of the national private sector,’ Faye confirms. The exploitation of our natural resources which, according to the constitution, belong to the people, will receive particular attention.’
Faye’s comments signal that Senegal may seek to take more control of an industry that’s set to make the country one of the world’s fastest-growing economies.
The West African nation is preparing to open the taps this year on the $4.8 billion (€4.3 billion) Grand Tortue Ahmeyim LNG project LNG, led by BP and Kosmos Energy, and the Sangomar oil development by Woodside Energy Group after numerous delays. The projects are expected to spur economic growth of more than 8% in 2024 and over 10% in 2025.
Faye adds that Senegal would continue to welcome foreign investment in the country: ‘To our partners and friendly countries, I would like to assure them that Senegal remains an open and welcoming country for all. We will constantly strive to maintain relationships.’
Trafigura has agreed to acquire Greenergy’s European business from Brookfield Asset Management, subject to customary closing conditions and regulatory approvals.
Initially founded in 1992 to supply diesel with lower emissions, Greenergy is today one of Europe’s largest suppliers of biofuels with manufacturing plants in the UK and the Netherlands and a leading distributor of road fuels in the UK.
The acquisition of Greenergy presents a unique opportunity for Trafigura to strengthen its fuel supply operations in Europe and to add the physical production and distribution of renewable fuels to its growing biofuels business. Post-acquisition, Greenergy will continue
to be led by its current management team. The combination of Trafigura’s and Greenergy’s commercial and market expertise will add value to the existing operations, and enable the company to explore opportunities for expansion into new markets and products.
In addition, Trafigura’s financial strength will provide a robust platform for growth, helping to drive Greenergy’s strategic initiatives and its decarbonisation plan.
Ben Luckock, global head of oil at Trafigura, says: ‘As Europe transitions to a lower carbon future and the refining industry adapts to changing market dynamics, companies like Greenergy become increasingly important. This acquisition represents a major expansion of our existing biofuels and fuel supply capabilities, adding Greenergy’s production and distribution expertise and supporting customers’ transition to cleaner, more sustainable fuel options.’
Christian Flach, chief executive of Greenergy, adds: ‘Trafigura brings additional understanding of global supply chains and energy markets and a track record of investing in renewables. This will further enhance our offer to customers through the energy transition and beyond.’
BWC Terminals, a provider of bulk liquid storage and logistics services in North America, has announced that Mike Suder, CEO and member of the Board of Directors, will retire effective 7 August 2024. Adam Smith, BWC Terminals President and COO, will succeed Suder as CEO and join the company’s Board of Directors.
Suder has served as CEO since the formation of BW Terminals in 2018. Under his leadership and direction BW Terminals acquired Contanda, LLC in 2019, rebranded to BWC Terminals and has grown the company 10-fold to become a leading independent bulk liquid storage and logistics provider. Prior to BWC Terminals, Suder’s 35-year career included leadership positions at Delta Terminal Services, Kinder Morgan Energy Partners, ArcLight Capital Partners, American Midstream Partners, LBC Tank Terminals and Blackwater Midstream.
Randy Daniels, BWC Terminals’ board chair, expressed his gratitude to Suder, saying: ‘On behalf of the Board, I want to thank Mike for his significant contributions and dedication to BWC Terminals. Mike has used his vast terminal knowledge and experience to successfully lead the BWC Terminal team through remarkable growth and development.’
‘It’s crazy to think that the BWC platform originated from a one terminal transaction in 2008, but the success and results of the business today are due in large part to the individuals I have been fortunate to work with throughout my career,’ says Suder. ‘I want to thank everyone at BWC Terminals, from our operators in the field to our senior leadership team for their continued dedication to the success of our organization. I am incredibly proud of the business that we have built, and I am excited to see the organisation’s continued growth under Adam’s leadership.’
Smith has been serving in an executive leadership role with BWC Terminals since 2019. He has more than 15 years of terminal experience, having started his career with Kinder Morgan in 2006. Prior to BWC Terminals, Smith had been the vice president of operations at Limetree Bay Terminals in St. Croix, USVI and before that, the vice president of operations of the Lower River Region at Kinder Morgan Liquid Terminals.
The speed of change has never been greater.
Conference & Trade Show
June 9-11, 2025 > Houston
ILTA 2025 is the largest event focused exclusively on the business and technology of liquid terminals.
Plan now to attend—take advantage of the focused networking and educational opportunities, learn key best practices and discover the latest technology, equipment and real-world industry solutions.
The Norwegian Directorate for Civil Protection has given approval to construct Yara and Azane’s planned ammonia bunkering facility at Fjord Base in Florø, Norway. The permit marks a significant milestone for enabling ammonia as a safe and low emission alternative to traditional shipping fuels.
The planned terminal consists of a floating stationary barge with a capacity of 1,000 m³ of low-emission ammonia. The permit allows for up to 416 operations annually, many of these expected to be bunkering operations for offshore supply vessels that call at Fjord Base in Florø.
Magnus Ankarstrand, President at Yara Clean Ammonia, states: ‘We are grateful for the permit awarded from the Norwegian Directorate for Civil Protection. This acknowledges how ammonia can be used safely and efficiently as a shipping fuel at the site in Kinn. The ammonia terminal will enable the decarbonisation of the maritime sector and showcase ammonia’s assets as a zero-emission shipping fuel. We look forward to working together with our partners and the local community in Kinn to complete the project and provide the shipping fuel for the future to the Norwegian offshore supply segment.
VTTI is exploring the possibility of developing a large-scale bioenergy installation at Zevenellen business park in Leudal, Limburg, the Netherlands.
The multifunctional and circular business park will process organic sidestreams that produce biogas which can then be upgraded to green gas and injected into the Dutch gas grid. This is a concrete implementation of the Climate Accord, which states that the Netherlands wants to produce 2 billion m³ of green gas by the year 2030. The project thus gives a strong push to the energy transition and further sustainability of the Netherlands.
The company has initiated dialogues with local residents and stakeholders
in the vicinity of Zevenellen business park, and is committed to hosting information sessions and consultations to ensure transparency and inclusivity every step of the way. The Zevenellen project forms part of VTTI’s strategy and its growing portfolio of bio-energy facilities in the Netherlands and Europe. Through planning and collaboration, we’re committed to ensuring that our operations align with the highest standards of environmental responsibility.
Copenhagen Infrastructure Partners (CIP), through its Energy Transition Fund, has signed a memorandum of understanding with Lotte Chemical Corporation (Lotte), one of the world’s largest producers of chemical products, to strengthen collaboration on clean ammonia projects.
The memorandum of understanding between CIP and Lotte is intended to support collaboration on clean ammonia projects. As part of the agreement, the two companies agree to discuss and finalise agreements for the supply, purchase, and sale of blue ammonia to Lotte from CIP’s St. Charles Project in Louisiana, USA, and green ammonia from CIP’s Murchison Project in Australia.
CIP and Lotte also agree to initiate discussions regarding development of and investment in low carbon ammonia projects on a global basis. The two companies also intend to discuss potential collaboration on projects in infrastructure bunkering and other sectors in connection with low carbon ammonia.
CEO and head of hydrogen business group of Lotte Chemical Corporation, JinKoo Hwang says: ‘We are delighted to cooperate with CIP, a global leader in greenfield renewable energy investments. With the Korean government’s strong policy support on energy transition, Korea will be the fastest growing market for clean hydrogen and ammonia. We will take lead in providing sustainable clean ammonia by utilising the strengths and expertise of both companies.’
‘We believe blue and green ammonia will co-exist for many years, as we gradually transition from fossil-based production. And we continue to see significant opportunities for both in the US, Europe, and Asia,’ adds CIP partner, Søren Toftgaard.
Vopak and Air Liquide have signed an agreement to develop and operate infrastructure for ammonia import, cracking and hydrogen distribution in Singapore.
The companies will look at developing low-carbon ammonia supply chains in Singapore, including ammonia cracking facilities, storage and handling infrastructure at Vopak’s Banyan terminal, as well as distributing lowcarbon hydrogen through a hydrogen pipeline network.
‘As Singapore gears up for receiving and handling ammonia for power generation and bunkering, cracking of ammonia into hydrogen presents an additional application to help the industry shift to lower carbon feedstock,’ Rob Boudestijn, president at Vopak Singapore, says. The company also recently announced it will convert part of Singapore Sebarok terminal for marine biofuel blending.
Vitol Bunkers has taken delivery of the Marine Future, its first specialised bunker barge in Singapore, strengthening Vitol’s position in Asia’s expanding biofuel bunker market.
The addition of this specialised IMO type 2 notation bunker tanker to the V-Bunkers fleet will make it possible to supply biofuel blends including B24, B30 and up to B100, depending on customer specifications.
Built in China, Marine Future is 102.6 m in length and has the capacity to carry about 7,000 MT of biofuels.
The current fleet of bunker tankers in Singapore are classified as oil tankers, and are therefore restricted to a maximum of 25% bio component in biofuel blends. This new bunker tanker has no such restriction, hence can deliver bunker fuels consisting of 100% bio component (B100).
Key to mitigate emissions in the shipping sector, biofuel sales in Singapore reached 520,000 tonnes in 2023 according to the Maritime and Port Authority of Singapore
(MPA), representing a material increase on the prior year where volumes were just 140,000 tonnes.
‘We are delighted to now be able to offer our maritime customers the option to take up to 100% bio component bunker fuel here in Singapore and play our part in advancing the port’s decarbonisation efforts. Should there be demand, this vessel can also be re-configured in future to supply methanol,’ says Mike Muller, head of Vitol Asia.
Neste and Lotte Chemical are teaming up to make chemicals and plastics more sustainable. The companies embark on a strategic collaboration to replace fossil resources with renewable raw materials in the manufacturing of chemicals and plastics. This will enable products and applications with a lower carbon footprint compared to those produced from fossil resources.
The collaboration will see Neste providing renewable Neste RE, a raw material for chemicals and plastics, that is made from 100% renewable raw materials.
Lotte Chemical will use Neste RE at the company’s Korean sites to produce various common types of plastics and chemicals in Lotte Chemical’s broad product portfolio. These plastics and chemicals may be used in multiple applications and in supply chains for various products ranging from packaging to construction and from textiles to electronics. The quality and performance of the end products remain unchanged.
With chemicals and plastics still largely depending on fossil resources, both companies see an urgent need to make a switch to more sustainable alternatives.
‘We are looking forward to increasing the share of renewable solutions in collaboration with Lotte Chemical,” says Jeroen Verhoeven, vice president value chain development for renewable polymers and chemicals at Neste.
‘Together, we can pave the way to more sustainable supply chains and lower emissions for a wide range of sectors and applications.’
USA
Chevron New Energies has announced it is developing a 5 MW hydrogen production project in California’s Central Valley, USA. The project aims to create lower carbon energy by utilising solar power, land, and non-potable produced water from Chevron’s existing assets at the Lost Hills Oil Field in Kern County. This low carbon intensity (LCI) electrolytic hydrogen will be produced through electrolysis, which is the process of using electricity to split water into hydrogen and oxygen.
hydrogen at Chevron New Energies. ‘Chevron already offers lower carbon fuels like sustainable aviation fuel, renewable diesel and others, and this project is expected to expand the portfolio of solutions Chevron could supply to the region. I’m excited about the scalability of this solution. However, our ability to meet growing hydrogen demand and help build hydrogen fuelling infrastructure in California to a commercial scale with more widespread adoption will be strongly led by state and federal energy policies that promote new lower carbon energy solutions.’
of customers along an important transportation corridor, as well as having proximity to key California urban markets.’
Chevron’s strategy is to leverage our strengths to safely deliver lower carbon energy to a growing world. Chevron believes in the value of delivering largescale hydrogen solutions that support a lower carbon world. The facility is designed to produce 2 tons (1.8 tonnes) of LCI hydrogen per day, with the goal of supporting an expanding hydrogen refuelling network.
‘Hydrogen can play a vital role in our journey toward a lower carbon future,’ says Austin Knight, vice president for
The development of the project is expected to span multiple years, and the start of commercial operations will depend on several factors including flexible and supportive legislative and regulatory energy policies, final engineering design, timely permitting, and obtaining the necessary materials.
‘This project will help develop key technical and commercial proof points as Chevron New Energies assesses concepts for future scale-up and new lower carbon intensity hydrogen production opportunities,’ says Richard Chapman, president and CEO at Kern Economic Development Corporation. ‘By locating expected production in the Central Valley, we believe the project will be well positioned to meet the demand
Lochard Energy is set to receive $2 m (€1.2 m) from the Australian Renewable Energy Agency (ARENA) for an 18-month feasibility study to assess the technical and commercial viability of storing hydrogen underground in existing gas reservoirs near Iona, Victoria,
This is the second phase of Lochard’s H2Restore Project which aims to support Australia’s National Electricity Grid (NEM) by providing long duration, seasonal hydrogen storage. Lochard has a history of supporting energy security and reliability in Victoria through owning and operating the Iona Gas Storage Facility near Port Campbell, Victoria.
The $6.3 m study will confirm technical feasibility of storing hydrogen deep underground in porous rock (sandstone),
develop a concept design for an initial pilot facility, and progress planning, design, and techno-economics for a potential commercial underground hydrogen storage facility.
USA
JERA has reached a project framework agreement with ExxonMobil to jointly explore the development of a low carbon hydrogen and ammonia production project in the United States.
ExxonMobil is currently developing what is expected to be the world’s largest low-carbon hydrogen production plant at its Baytown Complex east of Houston, Texas, United States. The plant is slated to have an annual production capacity of approximately 900,000 tonnes of lowcarbon hydrogen and annual production capacity of more than 1 million tonnes of low-carbon ammonia. The project aims to commence production in 2028.
Under the terms of the agreement, JERA and ExxonMobil will explore:
• JERA’s ownership participation in the project
• JERA’s procurement of approximately 500,000 tonnes annually of lowcarbon ammonia produced by the project for demand in Japan
‘Cooperation among leading companies is essential to establish supply chains for ammonia, hydrogen, and other products that are key to zero-emission thermal power,’ says Steven Winn, JERA’s senior managing executive officer and chief global strategist. ‘We believe that working together with ExxonMobil, who is actively promoting investment in carbon capture and storage (CCS) and hydrogen, will contribute to the transition to a global decarbonised society.’
‘Building world-scale projects for new markets requires supply, demand and supporting regulation to all come together in sync,’ says Dan Ammann, president of ExxonMobil Low Carbon Solutions. ‘We appreciate JERA’s leadership in helping advance the hydrogen economy and see this agreement as an important catalyst.’
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6 June 2024
London, UK
Weyerhaeuser Company and Lapis Energy have announced the execution of an exclusive exploration agreement for subsurface carbon dioxide sequestration in Arkansas, Louisiana and Mississippi.
The agreement covers 187,500 acres of subsurface rights owned by Weyerhaeuser and spans five potential sequestration sites, including two locations that were previously identified by Weyerhaeuser as prospective opportunities for carbon capture and sequestration (CCS) development.
Under the exclusive two-year agreement, Lapis will determine the sequestration potential of each site. Upon successful completion of the technical and commercial assessments, Lapis will have the option to move sites into full-scale development agreements and complete the work required to permit, build and operate permanent CO 2 sequestration sites serving large-scale industrial sources.
Russell Hagen, senior vice president and chief development officer for Weyerhaeuser says: ‘This exploration agreement represents a unique opportunity to scale our CCS offerings and build our climate solutions portfolio more broadly. We look forward to working with Lapis to unlock the value of CCS development across our ownership in the US South and help other companies reduce their carbon footprint.’
‘The announcement today, together with our existing assets, further establishes Lapis Energy as an industry-leading independent carbon sequestration
storage provider with a rapidly developing portfolio of business opportunities. Lapis believes these sites provide a competitive and advantaged option for our growing customer base north of the Gulf Coast,’ adds Reg Manhas, CEO of Lapis Energy.
JX Nippon Oil & Gas Exploration Corporation and Chevron New Energies have signed a memorandum of understanding (MoU) that provides a framework to evaluate the export of carbon dioxide from Japan to carbon capture and storage (CCS) projects located in Australia and around the Asia Pacific region. The main objective of the MoU is to evaluate the feasibility of the CCS value chain, including capture of CO 2 emitted from industries located in Japan, including JX’s affiliates, and transportation by ship from Japan to Chevron’s greenhouse gas storage portfolio in Australia. The collaboration will also explore the opportunity to develop suitable transboundary policies and the potential development of CO 2 storage sites in other countries in the Asia Pacific region.
‘We look forward to building off our longstanding relationship with JX and ENEOS Group, the largest Japanese global petroleum and metals conglomerate, and hope that this joint study ultimately contributes to the further development of large-scale CCS hubs throughout the Asia Pacific region,’ says Chris Powers, vice president of CCUS at Chevron. ‘We believe large-scale CCS value chain projects will play a key role in advancing Asia Pacific’s lower carbon aspirations, and that long-term collaborations are necessary to meet these aspirations.’
‘This MoU is achieved thanks to the significant oil and liquefied natural gas (LNG) relationship with Chevron that we have had over seven decades, and further demonstrates the commitment and dedication of the companies in helping advance lower carbon solutions,’ adds Tetsuo Yamada, executive vice president of JX. ‘JX has positioned CCS as an important initiative in its business strategy under its two-pronged approach, in which, in addition to the conventional oil and natural gas development business, decarbonisation initiatives centred on CCS/CCUS are another prong of the company’s operations such as the Petra Nova CCUS project in Texas, USA. JX will contribute to the realisation of a carbon-neutral society by leveraging the knowledge we have accumulated through our various CCS/CCUS-related businesses.’
Plans on Teesside for a gas-fired power stations with carbon capture have received development consent from the UK government.
Net Zero Teesside Power (NZT Power) is set to be one of the world’s first commercial scale gas-fired power stations with carbon capture usage and storage (CCUS). Preparatory works began on the site of an old steelworks last year. With the development consent order now signed, main construction works can go ahead – once the finance is in place.
NZT Power is joint venture of BP and Equinor. The combined-cycle gas turbine could generate up to 860 megawatts of power and capture up to 2 million tonnes of CO2 per year.
The CO2 is to be transported and stored by the NEP in subsea storage sites in the North Sea by the Northern Endurance Partnership (NEP), a joint venture between BP, Equinor and TotalEnergies.
NZT Power managing director Ian Hunter says: ‘The granting of a development consent order is an important step towards the development of the UK’s first full-scale integrated power and carbon capture project.’
BP senior vice president Louise Kingham adds: ‘This first-of-a-kind project has the potential to deliver low-carbon flexible power equivalent to the electricity requirements of around 1.3 million UK homes and can help secure Teesside’s position at the heart of the country’s energy transition.’
Texas LNG Brownsville, a subsidiary of Glenfarne Energy Transition, has signed a Heads of Agreement with Gunvor Group through its subsidiary Gunvor Singapore for a 20-year LNG FOB sale and purchase agreement (SPA) for 0.5 million tonnes per annum of LNG from Texas LNG.
‘We’re thrilled to welcome Gunvor to our portfolio of customers, connecting Texas LNG, one of the lowest-emitting liquefaction facilities in the world, with global economies in need of reliable, sustainable energy,’ says Brendan Duval, CEO and founder of Glenfarne Energy Transition and co-president of Texas LNG.
‘With the previously announced commencement of the execution phase of the project financing process, this agreement aligns with our plan to take a final investment decision on Texas LNG this year,’ adds Vlad Bluzer, co-president of Texas LNG.
‘We are pleased to have executed this agreement and become one of the
project. Gunvor continues to support US LNG export projects, unlocking new supplies for the global energy market and providing energy security especially to our customers in Europe and Asia,’ says Kalpesh Patel, co-head of LNG Trading at Gunvor.
Texas LNG will achieve financial close and begin construction in 2024 commencing commercial operations in 2028. The terminal is set to be constructed in the Port of Brownsville, Texas, with a capacity of 4 million tonnes of LNG per annum.
Vitol has announced the execution of a natural gas sale and purchase agreement with EOG Resources. Under the agreement, EOG will supply 180,000 million British Thermal Units per day of natural gas (equivalent of approximately 1.25 million tonnes of LNG equivalent per annum) to Vitol with 140,000 million BTU per day at
Crude Oil and the remaining volumes indexed to Brent or a US Gulf Coast gas index for a period of 10 years commencing in 2027.
Ben Marshall, head of Vitol Americas, says: ‘We are excited to build upon our relationship with EOG, a leader in US oil and gas space. The global energy landscape continues to evolve, showcasing the importance of US natural gas production in satisfying the world’s energy needs. Vitol has a long history of serving LNG customers world-wide and this transaction underscores Vitol’s ability to provide innovative gas and LNG solutions to North American gas producers looking to access global markets. Global LNG demand is experiencing significant growth and Vitol continues to strengthen its position to safely and reliably deliver cost effective, flexible solutions to our customers around the world.’
EOG’s D. Lance Terveen adds: ‘We are pleased to partner with Vitol, a premier energy and commodities company. Adding a Brent-linked agreement with start-date certainty further expands EOG’s pricing exposure to international natural gas markets and growing LNG demand. EOG is executing on its marketing strategy to diversify our access to customers across multiple end markets for our growing production of
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US LNG terminal developer Tellurian has secured more time from the US FERC to complete the construction of its Driftwood LNG project in Louisiana.
In April 2019, the FERC authorised Driftwood LNG to site, construct, and operate facilities for the liquefaction and export of natural gas in Calcasieu Parish, Louisiana. As well as the 27 million tonnes per annum LNG terminal, the regulator also authorised Driftwood Pipeline to build a new 48-inch interstate natural gas pipeline system in Evangeline, Acadia, Jefferson Davis, and Calcasieu Parishes.
Authorisation was on the basis that the Driftwood terminal and pipeline should be fully completed and made available for service within seven years.
However, Driftwood told the FERC in a filling dated 4 October that it would need an additional 36 months to complete construction of the LNG terminal and the pipeline and place the entire project in service. FERC granted the extension, giving both Driftwood LNG and the pipeline until 18 April 2029.
‘Because we find that Driftwood has demonstrated good cause for delay and progress in developing the projects, we will grant the requested threeyear extension of time to complete construction of the Driftwood LNG terminal and Driftwood Pipeline project,’ the FERC says.
Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 million tonnes per annum. However, the company is still working to secure financing for the project. Tellurian expects the first phase to cost about $14.5 billion (€13.4 billion) with about of $6 billion equity investment.
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Acquisition: INEOS has completed the acquisition of TotalEnergies’ 50% share of Naphtachimie (720 ktpa steam cracker), Appryl (300 ktpa polypropylene business), Gexaro (270 ktpa aromatics business) and 3TC (naphtha storage). These were previously 50:50 joint ventures between TotalEnergies and INEOS.
Products: Petrochemicals
Capacity: 720,000 tonnes / 300,000 tonnes
Comment: Xavi Cros, CEO of INEOS Olefins & Polymers South says: ‘We are pleased that we have today completed the acquisition of TotalEnergies petrochemical assets at Lavera. This is a major step forward for the INEOS French and South European businesses. We will now fully integrate these assets and enhance the competitiveness of our offer.’
Acquisition: Woodside has completed the sale of a 10% non-operating participating interest in its Scarborough joint venture to LJ Scarborough Pty Ltd (LNG Japan). Woodside’s strategic relationship with LNG Japan involved three elements: equity in the Scarborough joint venture; potential LNG offtake; and collaboration on potential opportunities in new energy.
Woodside holds a 90% interest in the Scarborough joint venture and will remain as operator. Following completion of the transaction with JERA announced on 23 February 2024, Woodside’s interest will be 74.9% in the Scarborough joint venture.
Products: LNG
Cost: $910 million (€839 million)
Comment: Woodside CEO Meg O’Neill welcomed completion of the sale. ‘LNG Japan’s commitment to the Scarborough Joint Venture is a demonstration of the value our customers place on gas as a long-term source of energy as they navigate the energy transition. Completion of the sale to LNG Japan is a significant milestone as we progress toward first LNG cargo from Scarborough targeted in 2026,’ she says. ‘We are also pleased to welcome Japan Organization for Metals and Energy Security’s equity investment in LJ Scarborough Pty Ltd. JOGMEC’s support reflects the contribution Scarborough gas will make to Japan’s energy security.’
Acquisition: EIG’s LNG company, MidOcean Energy, has completed its acquisition of Tokyo Gas’ interests in a portfolio of Australian integrated LNG projects. The acquisition includes Tokyo Gas’ interests in the Gorgon LNG, Pluto LNG and Queensland Curtis LNG projects. As part of the transaction, MidOcean will open an office in Perth, Australia, to support and oversee the projects.
Products: LNG
Comment: ‘The acquisition of these high quality, cash flowing LNG projects is a significant milestone in MidOcean’s strategy to build a diversified, global ‘pure play’ integrated LNG company that supports the world’s transition to a lowcarbon future,’ says De la Rey Venter, MidOcean’s CEO. ‘This transaction accelerates our ambition to be a leading player in the global LNG sector for decades to come, and we look forward to servicing key LNG customers in Japan, Asia and across the globe.’
Expansion: Odfjell Terminals US (OTUS) has successfully completed and commissioned Bay 13 at its Houston Terminal (OTH). The nine new tanks are a combination of stainless steel and carbon steel. Each tank has been meticulously engineered with positive pressure systems and full automation, underscoring Odfjell Terminals’ dedication to minimising emissions and environmental impact.
Products: Specialty chemical products
Capacity: Nine new tanks, 204,000 barrels
Comment: CEO of OTUS, John Blanchard says: ‘As we continue to invest in our assets, we are proud to have developed a new tank bay that will set the standard for our business with state of the art automation and controls with enhanced operating flexibility that prioritises both environmental sustainability and operational efficiency.’
Acquisition: Provider of innovative energy storage solutions, Global Energy Storage Group (GES), has announced the successful sale by its subsidiary, GPS Innova Singapore Pte, of 100% of the issued share capital of SRS Middle East FZE to Paragon Capital Pvt.
Products: Petrochemicals
Capacity: 178,640 m³
Comment: Peter Vucins, CEO of GES says: ‘Having built the Hamriyah Terminal from scratch, we have once again proven our world-leading capability to develop strategic assets on greenfield sites. We are pleased to have concluded this sale to Paragon Capital and are confident that they will do a great job as the new owners. I want to thank the SRS team for a great performance over the last six years since the terminal construction began, most notably in relation to our excellent HSE track record and awareness.’
‘We are delighted to have completed the acquisition of this state-of-the-art storage terminal in UAE which is run by an excellent team. We strongly believe that UAE will be a leading force in the energy sector, and this asset aligns very well with our strategy and investment thesis,’ adds Susmit Gupta, managing director of Paragon Capital.
Expansion: Rubis Terminal Rotterdam has started Phase 4 of its expansion. Phase 4 is planned to be operational by April 2025 and comprises of nine tanks with a total capacity of 28,000 m³. The tank configurations are designed to handle a large variety of (petro) chemicals, biofuels and (bio) circular products i.e. pyrolysis oils.
Products: Petrochemicals, biofuels & circular products.
Capacity: 28,000 m³ across nine tanks
Construction: TotalEnergies has announced the development of a battery storage project at its depot in Feluy, Belgium. This complements TotalEnergies’ existing battery storage at its Antwerp refinery. It will have a power rating of 25 MW and capacity of 75 MWh. Start-up is expected at the end of 2025.
Product: Battery storage
Cost: €70 million encompassing existing Antwerp refinery battery storage, and new construction
Capacity: 50 MW / 150 MWh between both storage projects
Comment: ‘We are pleased to announce this new storage project in Feluy, just a year after we began our Antwerp project, which should be operational by the end of the year. These projects are fully in line with our integrated development strategy for electricity, not just in Belgium, but globally,’ says Olivier Jouny, senior vice president, Integrated Power at TotalEnergies. ‘These technical systems also confirm the European leadership of our affiliate specialized in battery production, Saft, and its industrial-scale stationary storage know-how.’
Construction: Vopak has successfully commissioned 40,000 m³ of capacity at its Sebarok terminal for blending of biofuels into marine fuels. The existing pipeline system was also converted to a dedicated biofuel blending service.
Products: Biofuels
Capacity: 40,000 m³
Comment: Rob Boudestijn, president of Business Unit Singapore, says: ‘Our vision for Sebarok terminal is to be a sustainable multi-fuels hub to strengthen Singapore’s position as the top bunkering hub. As a storage and critical infrastructure services provider, this development can facilitate the entry of more biofuels companies to diversify the supply chain for marine biofuels and accelerate the decarbonisation of the shipping industry.’
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7 February USA
Fire breaks out at oil tank farm in East Haven, Connecticut
A fire broke out at an oil tank farm on Frontage Road in East Haven, according to fire officials. Firefighters responded to the call around 12:50 pm.
The fire started after fuel leaked during a transfer from one tank to another, according to fire chief Matthew Marcarelli.
It took firefighters about 45 minutes to bring the fire under control due to some issues with the fire protection system at the site. The fire was contained to the tank farm’s pipe rack. No injuries were reported.
Departments from New Haven, Branford, Guilford, as well as the Connecticut State Police Fire Investigative Unit and the Department of Energy and Environmental Protection also responded to the scene.
19 February
UNITED KINGDOM
Environment officers investigate River Stour oil leak
The UK’s Environment Agency (EA) is investigating the cause of an oil leak in the River Stour, England. The Environment Agency (EA) has said that officers located the source of the oil leak, and were investigating evidence of harm to the environment.
It also says most of the oil leak has been contained using booms and pads. ‘Some oil is currently visible along a 5km (3.1 miles) stretch of the River Stour and near Canterbury city centre,’ it says.
A spokesman for the EA says: ‘Our officers are continuing to work with the onsite contractors and investigate evidence of harm to the environment. We have received reports of one dead bird and one dead fish. We ask that the public continue to report sightings of oil on the river.’
7 March
Tobago oil spill under control
An oil leak from a barge carrying up to 35,000 barrels of fuel oil that capsized in early February off the Caribbean island of Tobago was stopped after a month. The spill, which was first spotted off the coast of Tobago’s Atlantic coast on 7 February, damaged some of the island’s mangrove and threatened its tourism and fishing sector. The spill also entered the Caribbean Sea, threatening nearby Venezuela and Caribbean islands, including Bonaire.
‘The hydrocarbon discharge emanating from the overturned vessel located off the coast of Tobago has stopped,’ said a release from Trinidad and Tobago’s ministry of energy.
The government has hired remediation and salvage firms to help clean up the spill and salvage the leaking barge. The volume of the spill, its origin, intended destination and ownership of the
8 April
Nine Injured in Pemex Akal-B Oil Production Platform Fire
Mexico’s state-controlled oil company said a fire at one of its Akal-B oil platforms in the Campeche Bank left nine people injured Saturday afternoon.
Petroleos Mexicanos, (Pemex), said two of the injured were its employees while the rest were from other companies. None had serious injuries and the fire was controlled in under 20 minutes, it said in a statement.
Akal-B, which is part of the Cantarell production complex, produces 200,000 bopd 900,000 cfg, the Reforma newspaper reported. The fire began where gas fuel pipes feed the platform’s turbo machinery, according to Pemex.
Tank Storage Magazine speaks exclusively to Andrés Suárez about Exolum’s expansion into the USA
, Exolum acquired a 50% interest in Vopak Moda Houston (VMH), an ammonia storage, import and export terminal located on the Houston Ship Channel, USA. Exolum took over from Moda Midstream LLC in its first foray into the US market.
Located at the very entrance to the Houston Ship Channel, the terminal has excellent deepwater access, making it capable of handling VLGCs and placing it in a prime position to take in large deliveries of product. ‘For us, it’s a key location and the right place to be,’ says Andrés Suárez, global strategy & growth lead at Exolum. ‘This is the main petrochemical hub in the USA, and probably second largest in the world. The area accounts for 86% of chemical production. It’s the right place to be.’
Entering the US market has been a goal for Exolum for quite some time. ‘The sale of Moda Midstream’s stake in the Houston terminal was an opportunity for us to establish a key position in the gulf
‘The customers we have in the US have specific needs and we are focused on how to best serve them, while developing different strategies and logistics solutions for other clients.’
coast with already-established ammonia infrastructure,’ says Suárez. Renamed Vopak Exolum Houston (VEH), the facility is 50-50 owned by Exolum and Vopak.
It’s not the first time these two logistics giants have worked together – with a joint venture already operating in the port of Tarragona, Spain. ‘It has been a very easy partnership,’ says Suárez. ‘We are companies that are very similar with our experience, clear long-term goals, and the same care and stewardship towards the safety of our employees and the environment around us.’
‘And of course the idea is not to stop here; we’re planning to grow more in
the USA,’ continues Suárez. Exolum will shortly be opening an office in Houston, located close to the terminal, so that a team of employees can work directly in the USA to develop future opportunities and acquisitions.
‘The strategy will be the same across our sites,’ says Suárez. ‘We have a keen focus on storage and transportation assets for biofuels, chemicals, hydrogen and its derivatives. But particularly in this region, we will also have an open eye toward CCUS. This project helps us take a step forward in our diversification strategy – both geographically and environmentally in terms of products for the energy transition.’
Vopak Exolum Houston already has a robust ammonia infrastructure in place. With several tanks in total storing 46,260 m³ of product, the terminal handles both ammonia and LNG. The ammonia typically comes via a vessel, using the deepwater draught measuring 13.7 m. VEH keeps the ammonia stored in its
tanks on site, ready to be fed directly to the customer via a dedicated pipeline. A similar process happens with the LNG, the key difference being it is delivered to VEH by rail. With these dedicated pipelines connections, VEH is able to offer its customers a dedicated service, catered to their specific needs. This is well aligned with Exolum´s strategy. ‘We focus on supplying local demand and on fulfilling the specific needs each customer has,’ says Suárez. ‘The customers we have in the US have specific needs and we are focused on how to best serve them, while developing different strategies and logistics solutions for other clients.’
One way VEH is doing this is by getting ahead of the energy transition and developing even more low-carbon ammonia storage at the terminal. ‘We have plans to develop capacity for an additional 70,000 tonnes of blue ammonia storage,’ says Suárez. ‘We’re demonstrating that we’re eager to develop new infrastructure and sending a good message to our customers.’ On top of this VEH has a spare 100 acres of its 115 acre-site for further developments to meet customer demand.
In the USA, blue – low-carbon – products are being championed by the industry on multiple fronts. ‘We anticipate that Texas will play a significant role in the energy transition,’ says Suárez. ‘It’s a good place to develop blue products as there is no
other place in the world that will facilitate the development of these. We anticipate that green products will come later, but low-carbon is the focus here for now.’
Industrial complexes will be at the forefront of producing, refining and soring greener products and fuels first, which will later be delivered to customers that are asking for it. Exolum sees this as a key part of its diversification strategy. ‘One of our targets is to support the development of development of new supply chains for more sustainable products – so we’re meeting that by facilitiating the infrastructure here,’ says Suárez. ‘It’s another step in our diversification strategy – we want to position ourselves as a leading logistics company to support
the energy transition and diversification. It will help us grow in the region and gain new competencies and knowledge that will be applied in other locations where Exolum operates.’
For more information: exolum.com
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Molly Cooper speaks with CEO of Advario, Bas Verkooijen about the company’s current activities and what lies ahead for the industry
years since Advario launched its new brand, stepping away from the Oiltanking moniker, and since Bas Verkooijen started as its CEO.
‘Since the launch in 2022, Advario has made huge steps forward. We have completed the carve-out and rebrand, established ourselves in the market, and have grown a vibrant company culture. Our strategy is clear, to our people and to the sector, and we are executing on it,’ says Verkooijen.
Advario’s business is growing in chemicals, gases and new energies, and it has recently started its first pure greenfield project in Mexico. The company has also been working on brownfield projects that allow it to shift its portfolio.
Adavrio is maximising the value of its assets, by delivering strong commercial, operational and – most importantly –safety performance. Verkooijen says: ‘We are becoming a more sustainable operator, through a wide range of initiatives that reduce our CO2 footprint. All in all, I feel we have built a strong base for further value, growth and continuous improvement.’
First and foremost, Verkooijen see it as his role to make sure Advario operates its terminals safely and reliably. ‘That is my main priority,’ he says. ‘As Advario, we take pride in our commitment to deep, long-standing and mutually beneficial partnerships, and it is part of my role to
strengthen the relationship with partners and customers.’
Beyond that, Verkooijen is also responsible for the delivery of Advario’s long-term strategy. He and Advario’s leadership team work to provide a clear strategic direction, and to enable its people to do their job to the best of their ability. ‘In my opinion, these priorities are connected. Having that clear direction, in turn, makes it possible for our people to make decisions and prioritise, to focus and deliver their part, in line with our strategy,’ says Verkooijen.
At the end of 2023, Advario launched Horizon 2030, a strategy implementation programme that focuses on growth, excellence in operational, commercial and safety performance, and sustainability. The Horizon programme outlines where the company wants to be in 2030, providing clarity and giving each of its employees a long-term goal to work towards, within a stable framework. ‘The programme allows Advario to reach our full potential: now it is up to us to, year on year, make the necessary steps to meet our 2030 targets,’ says Verkooijen.
‘We deliberately choose to focus our activities, as we believe that focus delivers results. Across the globe, there are many opportunities in our sector, many more than a single company can take on. Advario wants to focus on those opportunities where we believe we can create most value, working together with the right partners, leveraging our deep industry knowledge and engineering expertise,’ he explains.
Some good examples of this are the ethane import terminal Advario is constructing in Mexico together with its partner Braskem Idea; the development of an ammonia import terminal with Fluxys in Antwerp, Belgium; and the development of a new energies terminal in Rotterdam, Netherlands, together with several strategic partners.
‘We focus on those geographies where we see most potential and opportunities that best fit our strategy,’ Verkooijen adds.
The diversity of Advario’s portfolio allows it to have a competitive edge and is a strength Verkooijen will continue to build on. ‘Advario is active in the major energy hubs and can handle a wide range of products in chemicals, gases and new energies. That diversity of product and location makes it possible to thrive through increased market volatility, giving us the stability needed to continue the delivery of our strategy,’ he explains. Advario’s company culture is also a competitive advantage. It plans to continue the tradition of Oiltanking, harbouring its engineering capability and deep knowledge of the storage industry, pairing that with decades of experience in partnering with its customers. Advario is also well-suited to respond to unexpected or rapid market developments. This responsiveness helped the team in Finland last year in the wake of the Russia-Ukraine war, as flows and product levels changed rapidly.
‘The ability to shift gears allowed our terminal in Finland to quickly replace a large part of our historic volume flow –the terminal depended heavily on nowsanctioned Russian product. The team managed to replace the loss of product with several agreements in biofuels and a variety of chemical and gas products,’ adds Verkooijen.
The storage industry plays a very important role in both the assurance of energy security and the acceleration of the energy transition, two globally crucial topics. The importance of energy security is front and centre, due to the geopolitical tensions that continue to impact tank storage and the wider energy industry. And the momentum towards the energy transition is real, even though the viability of projects in new energies is put under pressure by inflation, high interest rates and regulatory frameworks that need further development.
‘Close collaboration with new partners and deepening of existing partnerships across the full energy value chain are needed,’ says Verkooijen. ‘The future of our industry consists of partnerships As the projects become more and more complex. Strong technical and project execution capability,
and the ability to work collaboratively is required to be successful.’
In Verkooijen’s opinion, governments and authorities also need to provide a clear regulatory framework, and incentives that support long-term investments by asset operators, logistics providers and offtakers. ‘Advario is a partner for progress and is committed to provide its expertise and resources to further the transition.’
Safety is Advario’s number one priority. It protects the people that work at its sites, the people that live near the areas where it operates, and the environment it operates in. Verkooijen cannot see long-term sustainable value creation for Advario or any other company without safety being a core value.
‘In 2023, we have managed to operate Goal Zero, incident-free, for more than 250 days, across our global portfolio. I take inspiration from that, am proud of the improvement we have made over the years, and am determined to improve further,’ he says.
Advario plans to continue to transition its portfolio towards chemicals, gases and new energies. Its efforts on ammonia are one tangible example on this front. ‘We have experience with ammonia, operating large-scale storage since 2017, and look to expand ammonia storage across the portfolio. Soon we will commission the largest ammonia tank in the world, which is located at our Texas City terminal. And we are exploring opportunities in ammonia in Europe, the Middle East and Southeast Asia,’ explains Verkooijen. ‘Maximising the value of our existing operations is the second pillar of our strategy. Advario’s focus is on excellence in operational, commercial and safety performance, driving continuous improvements across our end-to-end operations,’ he adds.
The last pillar is sustainability. ‘Advario is committed to achieving net zero by 2040 or sooner. The biggest substantial
development on this front is the finalisation of detailed decarbonisation roadmaps, per terminal, with concrete initiatives to reduce the greenhouse gas emissions associated with our operations,’ Verkooijen says.
‘Advario builds on a strong heritage of developing, innovating, building and operating storage infrastructure. Our people make the difference: they are experienced professionals that are deeply familiar with their terminal and its ecosystem. We also stimulate collaboration across the Advario portfolio. We see the diversity of thought and background lead to results,’ Verkooijen details.
Advario’s people have strong networks in the industry. Conferences, like those that take place at StocExpo, contribute significantly to the maintenance of these networks. As the sponsor for the FETSA Tank Storage Conference at StocExpo 2024, Advario was able to present its ideas on the terminal of the future, enabling knowledge-sharing across the industry. ‘These conferences and shows also expose our colleagues to new developments, trends and technologies. Active membership of industry collaborations, such as the Hydrogen Council, are another example of how Advario tries to bring the outside in,’ Verkooijen says.
Working closely with partners across its global portfolio, Advario collaborates with industry-leading corporations, as well as local, innovative companies and universities. Verkooijen and Advario believe in the value of energy sector ecosystems and deep, long-term partnerships, which is why they choose to work with strong business partners and proactively engage with port authorities and governmental stakeholders. ‘Advario contributes its expertise to these partnerships, and we look to learn from the unique expertise these partners have in store,’ he adds.
‘Lastly, we invest in a culture of continuous improvement. This is embedded in Horizon 2030, but has also been part of how we’ve been operating since Advario launched. One example: in Belgium we have invested in our people, by stimulating colleagues at our Advario Stolthaven Antwerp (ASA) and Antwerp Gas Terminal (AGT) to follow a Lean6Sigma Green Belt program, which focuses on the continuous improvement of existing processes,’ Verkooijen explains. This led to a variety of improvement initiatives, from operational efficiency to strong performance on personal and process safety. The most eye-catching improvement was achieved through a significant energy saving initiative at AGT. ‘It’s a good example of the approach our company wants to take. We empower our people, by setting clear targets in line with our strategy, and stimulating them to explore the solutions that work best at their terminal.’
‘Our sector relies on collaboration, trust and teamwork. I believe the future of industry – in general – relies on partnerships, certainly in this sector.
Individual projects are increasingly complex, and the overarching topics we deal with are too complicated for anyone to solve alone. Successful collaboration and strong partnerships are the solution,’ says Verkooijen.
He advises any professionals that are looking to grow in this industry to collaborate, to be open, to show trust.
‘Build on the strengths and ideas of others, share insights, opportunities and also risks, together. The companies that put this to practice will perform best, and the people that work this way are the leaders of the future.’
For more information:
www.advario.com
01 Bas Verkooijen, CEO, Advario
StocExpo is a fantastic way for us to bring knowledge directly to potential customers, with a phenomenal conversion rate! The tank and storage world is growing, shifting, adapting, and StocExpo is growing with it.
Peter Lorenz, Product Manager, EmersonIt’s been valuable to be here and get insights from our energy partners directly.
Sachin Mohanani, Terminal Operations Analyst, Shell
Great to see colleagues and friends of old and make many new connections! StocExpo has been an amazing opportunity to network with the industry’s best, and we’re thoroughly looking forward to next year.
George Burrell, Solutions Segment Owner, Endress + Hauser
StocExpo was an enormous success! If you did not attend, you missed something worthwhile for the industry.
Sandra de Mey, Commercial Manager, North Sea Port
The event has been good, most importantly the quality of the visitors. We’ve had terminal operators and analysts here and being able to talk to them directly about our products has been incredibly valuable
Jeffrey Van Veen, Export Manager, KOKS Robotics
