Oil Terminals: strategic positioning in uncertain … positioning in uncertain markets Key messages...
Transcript of Oil Terminals: strategic positioning in uncertain … positioning in uncertain markets Key messages...
Oil Terminals: strategic positioning in uncertain markets
Platts 6th Annual European Oil Storage Conference, 7 December 2012
Walter Moone, Commercial Director, Vopak Netherlands
Strategic positioning in uncertain markets Key messages
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Focus on quality and sustainability of primary
process essential for long term success
Strategic positioning on a diversified portfolio of
specialised terminals, with focus on key markets
Bulk liquid markets subject to many changes in
2012 - importance of efficient trading and
distribution hubs
Platts 6th European Oil Storage Conference 21 January 2013
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Solid long-term trends Growing energy demand and supply and demand imbalances
Platts 6th European Oil Storage Conference 21 January 2013
Growing energy demand Growing imbalances
▪ Growing energy demand by over one-third
to 2035, mainly from non-OECD countries ▪ Growing supply and demand imbalances
require additional tank storage infrastructure
Economic turmoil
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Topics 2012
Iraq and tight oil Renewables Capacity
expansion Regulation
Platts 6th European Oil Storage Conference 21 January 2013
Strategic positioning in uncertain markets Key messages
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Focus on quality and sustainability of primary
process essential for long term success
Strategic positioning on a diversified portfolio of
specialised terminals, with focus on key markets
Bulk liquid markets subject to many changes in
2012 - importance of efficient trading and
distribution hubs
Platts 6th European Oil Storage Conference 21 January 2013
Vopak Netherlands One division
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Vopak Netherlands One
Customer Leadership Operational Excellence Growth Leadership
Working in realising
excellent service levels
tailored to client/market
needs
Emphasis on
professionalism and cost
competitiveness
Optimised portfolio of
terminals, each focusing on
key markets
Focused strategy in place Disciplined execution existing business and projects
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Key markets Trends Europe
Black Petroleum
Chemicals Biofuels & Vegoils Clean Petroleum
FSU crude exports
Upgrades of
refineries
Continued high level
of activity at
Rotterdam hub
Increased
competition for
storage in Estonia
Rationalization
NWE imports
subdued but
resilient
Increased
competition for
storage in the ARA
region
Key producer,
consumer and
importer of biofuels
Large vegoils
importer
Rotterdam is
biofuels and vegoils
hub
Closure of refineries
Gasoline surplus
increasing – focus
on Amsterdam
Diesel deficit to
grow – focus on
Rotterdam and
Antwerp
Platts 6th European Oil Storage Conference 21 January 2013
Fuel oil Rotterdam: pivotal fuel oil hub for North West Europe
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From Baltic ports: 17.4 NL production: 8.5
EU: 12
Other countries: 2.5
Total Russian exports 60 MT
Brazil: 1.2
USA: 1.3
Unit: Million Tons Source: IEA, 2011
Singapore: 10.4
(39 VLCC’s)
Other countries: 0.5
Belgium: 8
NW E ex. ARA: 4.6
Other EU: 3.7
USA: 2.2
Local Bunker demand: 13
NL NL
Supply (Import + production) Demand (Export + Consumption)
Platts 6th European Oil Storage Conference 21 January 2013
▪ Class III storage capacity is managing a
large and complex flow of heavy fuel oil
mainly from Baltic
▪ ARA acting as a hub to blend and redistribute
fuel oil in combination with supplying local
bunker markets
Vopak Europoort Fuel Oil Hub
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▪ Increased need to handle
complex Heavy Fuel Oils
▪ High viscosity
▪ Blending
▪ Fast turnaround of VLCC’s
▪ Reliable barge loading
▪ Vapour control
Clean Petroleum Products Global flows
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Source: WoodMackenzie
Intra
region
19 Mt
Gasoline Middle Distillates
Platts 6th European Oil Storage Conference 21 January 2013
▪ ARA has important role as long-haul export
location. Amsterdam as main hub. ▪ ARA import location for long haul cargo’s and
Intra regional trade.
ARA
* 2011 Diesel/Gasoil Trade
Vopak Amsterdam Westpoort Gasoline export and Mid Distillates import hub
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▪ Efficient make and break bulk
services
▪ Blending
▪ Wide range of Fuel blending
components
▪ Fast turnaround of vessels
▪ Flexibility
▪ Efficient ICE deliveries
Strategic positioning in uncertain markets Key messages
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Focus on quality and sustainability of primary
process essential for long term success
Strategic positioning on a diversified portfolio of
specialised terminals, with focus on key markets
Bulk liquid markets subject to many changes in
2012 - importance of efficient trading and
distribution hubs
Platts 6th European Oil Storage Conference 21 January 2013
Full compliance expected High level no longer good enough
• The storage industry is responsible
for own performance.
• Vopak operations is based on local
legislation and Vopak standards
• Transparency to stakeholders on
integrity of operations