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Transcript of Tank Storage Magazine
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Regional focus: tank storage in asia
Oiltanking keeps on growing
Breaking ground in the literal sense
decembeR 2012
The companys senior management talks us through the latest acquisition of Helios terminal in singapore
With the Jurong Rock cavern operatorship still scheduled to begin next year, JTc discusses the project so far
The voice of the storage terminal industry
Volume no. 8 issue no. 5
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TANK STORAGE December 2012 1
As 2013 rapidly approaches, we thought
wed get in early by launching a new
look for Tank Storage magazine.
Despite difficult economic conditions around the world, were celebrating
here after being granted our first ever full audit circulation certificate.
This Business Publications Audit now means we have concrete proof showing how many copies of the magazine are printed, where it is distributed and the fact that over half of our readers have requested their copy.
You might ask why we havent done this earlier, having been around for eight years, and the answer is: it hasnt really been necessary.
Being a small team were very trustworthy and transparent, well-known in the sector and people
are comfortable we do what we say we do. But, in difficult economic times, everyone
is cutting costs and people start worrying
theyre not getting what they pay for. Now
theres one less thing to worry about.
And with a new approach we thought wed
bring in a new look. Tank storage is generally
thought of as being a stable, reliable sector,
but that doesnt have to equal boring. Were hoping to bring a slightly more light-hearted approach to the magazine in an attempt to make work a little more interesting.
This comes with increasing the magazine to six times a year from the previous five, in a direct response to reader demand.We hope you like our new look and, as always, welcome your suggestions on further improvements.
Best wishes,
Margaret
A new look for a new year
comment
Margaret DunnAssociate publisher
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contents
December 2012
Volume 8 iSSuE 5
Horseshoe Media LtdMarshall House124 Middleton Road,Morden,Surrey SM4 6RW, UKwww.tankstoragemag.com
mANAGING DIrecTorPeter PattersonTel: +44(0)20 8648 [email protected]
AssocIATe publIsher & eDITorMargaret DunnTel: +44 (0)20 8687 [email protected]
DepuTy eDITorJames BarrettTel: +44 (0)20 8687 [email protected]
AssIsTANT eDITorKeeley DowneyTel: +44 (0)20 8687 [email protected]
ADVerTIsING sAles mANAGerDavid KellyTel: +44 (0)203 551 [email protected]
souTh AmerIcAN sAles represeNTATIVeRoberto Bieler+55 21 3268 2553+55 21 9465 [email protected]
proDucTIoNAlison BalmerTel: +44 (0)1673 [email protected]
subscrIpTIoN rATesA one-year, 6-issue subscription costs 150 (approximately $240/185 depending on daily exchange rates). Individual back issues can be purchased at a cost of 30 each
Contact: Lisa LeeTel: +44 (0)20 8687 4160Fax: +44 (0)20 8687 [email protected]
No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Tank Storage are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher.
ISSN 1750-841X
contentsnews1 comment
2 contents
4 Terminal news
31 Technical news
44 Incident update
47 regulations
56oiltanking keeps on growingOpportunities in the oil storage market dont come up every day, so when they do we grab them with both hands, both Oiltanking Asia Pacifics president and VP for business development explain
81From the track to the tank
2 December 2012 TANK STORAGE
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contents
TANK STORAGE December 2012 3
contents
features53 Tighter controls on chemicals increases
compliance challenges
58 Tank terminal update Asia
71 big plans, but what is the reality?
75 state-run companies look to the independents for storage needs
84 Tank storage Asia exhibitor preview: celebrating its fourth year in singapore
92 making insulation a long-term investment
95 looking to the future More than 900 attendees, 285 companies, 186
first time visitors and 80 countries represented made it the biggest EMEA HUG ever
98 palm oil lining solutions
101 layered protection Critical safety functions, such as emergency
shutdowns, need to be kept separate from generic IT solutions to ensure efficient, fail-safe operations
104 Germany: know whats changed A summary for those that missed the 8th
Conference on Flat Bottom Tanks in Munich
106 A problem shared: TsA review
108 events page Ad index
78Jurong Island: breaking ground in the literal senseWith space already tight on Jurong Island, terminal operators are eagerly awaiting news on the regions space saving initiatives. Tank Storage magazine talks to JTC to find out the latest on its underground rock caverns
Front cover courtesy of Rosemount Tank Gauging
65china on the rise
49marine terminals: the next step in standards & safety
reGIoNAl Focus: TANK SToRAGE IN ASIA
Oiltanking keeps on growing
Breaking ground in the literal sense
December 2012
The companys senior management talks us through the latest acquisition of helios terminal in singapore
With the Jurong rock cavern operatorship still scheduled to begin next year, JTc discusses the project so far
The voice of the storage terminal industry
Volume No. 8 Issue No. 5
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terminal news
4 December2012TANK STORAGE
URT acquires 5m barrel storage terminal from Phillips 66
Arc Terminals and CN partner to build rail terminal in Alabama
United Riverhead Terminal
(URT), an affiliate of Pennsylvanian United Refining Company, has completed
its acquisition of downstream
energy company Phillips
66s Riverhead Long Island
bulk storage terminal and
associated assets.
The Long Island, New
York-based terminal is
spread across 280 acres and
features 20 storage tanks
with a total capacity of 5
million barrels for petroleum
products such as crude, heavy
fuels, diesel and petrol.
The facility also features
a truck transfer rack and an
offshore barge/ship platform
which is the only deepwater
loading/unloading platform
on the US East Coast.
The terminal itself is well
located strategically; access
to low-cost and reliable
marine transportation is vital
to the competitiveness of its
customers in petroleum and
petrochemical operations.
Riverhead allows access to
high capacity deepwater
marine facilities that will give
them a cost advantage
over other locations, John
Catsimatidis, chairman and
CEO of Red Apple Group,
which includes the buyer,
said in a statement. We will
be able to provide storage
and terminalling services to
a wide variety of customers
throughout the world.
The sale of the Riverhead
Terminal is part of Phillips 66s
on-going strategy to divest
assets that do not fit with our long-term business objective,
explains Tim Taylor, executive
VP of commercial, marketing,
transportation and business
development for Phillips 66.
The terms of the agreement
were not disclosed. Moelis &
Company served as advisor
to URT, while Bank of America
Merrill advised Phillips 66
throughout the transaction.
Independent terminal
company Arc Terminals and
CN have joined forces to
build a rail tank car unloading
terminal in Mobile, Alabama
that will handle Western
Canadian heavy and Bakken
light crude oil destined for
refineries on the Gulf Coast.The terminal is expected
to come online by June next
year. It will eventually be
able to handle 120 tank cars
per day, or 75,000 barrels
of crude oil, but will have
an initial volume of 40 tank
cars of crude oil per day.
The terminal will be able
to receive both general
purpose and insulated
coiled cars. Many similar
facilities can handle only
general purpose tank cars.
The Mobile facility the
first rail tank car crude oil unloading terminal in Alabama
will provide good access
to Gulf Coast refineries and allow quick turnaround of
tank cars, increasing product
delivery and fleet velocity
and reducing costs for car
owners, John Blanchard,
president of Arc Terminals,
said in a statement.
The rail transload terminal
will handle heavy crude oil
from Western Canada and
light crude oil from the Bakken
basic via CN, which will
provide Canadian producers
single-haul service to our
Mobile destination. A single-line
haul is more efficient and less expensive than those involving
two or more rail carriers and
multiple terminal switching.
A new pipeline will also
be built to connect the new
rail transloading facility to
Arc Terminals Blackley tank
farm. From Arc Terminals
facility crude oil can then
be delivered to Gulf Coast-
based customers via
pipeline, or by vessel as far
as Corpus Christi, Texas.
The Blakeley terminal has
a storage capacity of 700,000
barrels of crude, fuel oil and
asphalt. Terminal capacity
should be expanded to more
than 1 million barrels to meet
potential future demand.
Phillips 66 is divesting assets that are not part of its future business
The terminal will handle heavy and Bakken light crude oil
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TANK STORAGE December2012 5
terminal news
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New Vitol storage farm gathers pace in Cyprus Energy trader Vitol is to complete
construction of an extensive storage tank
farm in Cyprus by the end of 2014.
The 300 million project in the Vassiliko
area of Cyprus will create terminal storage
capacity of 643,000m3 for the likes of
petrol, diesel, jet fuel, gasoil and MTBE.
VTTV, a 50/50 venture between Vitol and
Malaysian shipping company MISC, began
construction work on the island in early 2011.
New proposals for Colorado fuel facility A new bulk propane fuel storage facility
has been proposed in Colorado, US.
The plans for the Colorado Propane
Supply Distribution Facility would see 48
bulk propane storage tanks, which would
store 30,000 gallons of each, provide a total
storage capacity of 1.44 million gallons.
The earmarked site is located on the
Colorado 120 route and the 35-acre site once
housed a Domtar gypsum plant. Any new
facility would generate up to seven local jobs.
Kuwait takes delivery of new storage tanks Global logistics company Rickmers Linie has
completed the transportation of three LPG
storage tanks from Malaysia to Kuwait.
The tanks, which each weighed 475
tonnes, were destined for the new Kuwait
Oil Tanker Company LPG filling station at Umm Al-Aish. The new plant will be built
on an area of 150,000m2 and provide 15
million cylinders of gas every year.
The storage tanks were constructed by KNM
Process System, part of the global KNM Group.
New storage terminals set for Costa Rica Costa Rica-based Terminal de Graneles Mon
(TGM) is to build a terminal for the purpose
of receiving, storing and dispensing liquids.
The project has an investment of around $5 million (3.8 million) to provide storage tanks and reception services at the port and for product shipping.
The project will be developed by TGM advisors German Moreno and Rodolfo Blasio, with investment by the PASQUI Group, and is set to measure 20,000m2 located between the Qumicos Holanda facilities and terminals belonging to Transmerquim and the former Exxon in Moin, Limon.
news in brief...Inergy to acquire Rangeland Energy for $425m
GT opens OmniPort terminal
Phase I of ECHO terminal operational
Texas-headquartered midstream energy
company Rangeland Energy has
entered into a definitive agreement to sell the company to Inergy Midstream,
an energy storage and transportation
company headquartered in Kansas,
Missouri, for $425 million (332 million).
Expected to close at the beginning
of December, the transaction will
see Rangelands management
continue with midstream development
opportunities across North America
under the existing company name.
Rangeland owns and operates
North Dakotas largest open-access
crude oil distribution hub the COLT
system. It features a large crude oil rail
loading terminal in the states Williams
County and related storage and
pipeline infrastructure. The hub serves
oil refiners, marketers and producers, and has contracted aggregate
volume commitments of approximately
150,000 barrels of crude per day.
COLT is well positioned to be
the premier crude oil terminal in
the Bakken, comments Rangeland
CEO Chris Keene. Through this
on-going relationship, we are well
positioned and funded to continue
developing and growing its business
in other emerging regions.
Inergy chairman and CEO John
Sherman says: The COLT assets provide
Inergy with a solid position in this prolific region and are a great complement
to our existing midstream operations.
Citi served as Rangelands financial advisor for the transaction, with Jones
Day providing legal counsel.
GT Logistics has officially opened its new $95 million (74 million) GT
OmniPort terminal in Texas, US.
Built on 100 acres of land at
Port Arthur, the terminal can now
receive crude oil transported via
truck, rail, ship and barge and is able
to facilitate up to 250 rail cars.
GT Logistics has broken ground
on the second phase of the project,
which includes rail storage capacity
on 300 acres. The rail storage terminal
will be able to handle, switch and
transload more than 1,000 railcars
when construction is finalised.Once fully operational, the terminal
will create up to 45 new jobs, Beau
Maida, director of rail operations for GTL
affiliate GT Rail, was quoted as saying.The opening of the GT OmniPort
rail terminal offers rail users a significant opportunity to improve operating
efficiencies in the Golden Triangle region as our location, ability to
provide onsite locomotive power,
use of AEI tag readers for inventory
reporting, staff of experienced and
certified rail professionals and access to excellent rail service with available
main line switching frequency seven
days a week will ensure customers
safe and efficient service.
Phase I of Enterprise Products Partners Enterprise Crude Houston (ECHO) storage terminal in Harris County, Texas is complete.
This initial stage includes three storage tanks with a total 750,000 barrels storage capacity and the facility is now receiving deliveries of crude oil.
Phase II of the project will see the construction of an additional 900,000 barrels of storage. Enterprise says this phase could be operational by the beginning of 2014. It also estimates that the ECHO facility could have up to 6 million barrels of crude oil storage capacity when completed.
AJ Teague, executive VP and COO of Enterprises general partner, says: Enterprises ECHO facility is at the centre of a historic and fundamental shift in our nations crude oil infrastructure by linking growing supplies of North American crude and condensate production with the US Gulf Coast refining complex. Ultimately, ECHO will provide pipeline and waterborne access to every major Gulf Coast refinery, representing more than 7 million barrels per day of capacity.
6 December2012TANK STORAGE
terminal news
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terminal news
TANK STORAGE December2012 7
Greenergy has announced
plans to penetrate the
fuel industry in Canada.
From the second quarter
of next year, the UK-based
supplier of petrol and
diesel will begin supplying
fossil and biofuels to
south western Ontario.
Greenergys first supply location in Canada will be
Vopaks Hamilton terminal.
From here it will supply
E10 petrol, ethanol and
ULSD. A number of terminal
improvements are to be made
to the site before Greenergy
begins supplying E10 in 2013.
In the UK, Greenergy
has achieved long-term
growth by delivering what
every customer ultimately
wants lowest priced fuel
combined with the highest
levels of customer service,
supply resilience, operational
efficiency and sustainability.
We intend to replicate that
strategy in Canada, Paul
Bateson, COO of Greenergys
international operations
and director of Greenergy
Fuels Canada, says.
Greenergy currently
supplies over 25% of the
UKs road fuel market. In a
statement, the company said
it is now looking to expand
internationally and build
on its existing operations
in the UK, US and Brazil.
The company intends
to expand to other supply
locations in Canada
in due course.
Greenergy expands fuel supply business into Canada
Greenergy will supply fossil and biofuels to Canada by Q2 2013
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terminal news
8 December2012TANK STORAGE
TransCanada and Phoenix join forces for pipeline
Enbridge to transfer crude oil storage assets for over $1bn
TransCanada and Phoenix
Energy Holdings are to
develop the Grand Rapids
Pipeline in Northern Alberta,
Canada after entering into
binding agreements.
Costing $3 billion (2.3
billion) to build and stretching
50km, the pipeline will be
able to transport up to
900,000 barrels a day of
crude oil and 330,000 barrels
a day of diluent between
Fort McMurray and the
Edmonton/Heartland region.
Under the agreement,
each company will
own 50% of the project,
which is expected to
be operational by the
beginning of 2017 subject
to regulatory approvals.
The investment will be spent
between 2014 and 2017.
TransCanada will operate
the system and Phoenix
has entered a long-term
commitment to ship crude
oil and diluent on it.
As Alberta crude oil
production continues to
grow, its critical to have
the infrastructure in place
to move oil to market from
emerging developments west
of the Athabasca River. This is
the first major pipeline project to meet the needs of this fast
growing area, Russ Girling,
TransCanadas president and
CEO, said in a statement.
We are pleased Phoenix
is joining us on the Grand
Rapids Pipeline project to
transport this growing, long-
term supply of Canadian
crude oil in a manner that
respects the communities and
environment where the
pipeline will operate.
Phoenix president
and CEO Zhiming Li
said transportation
in the Athabasca
region has become
bottlenecked and
recognised that
the venture with
TransCanada is crucial
to implement our
development strategy.
The project will
be built, owned and
operated by the
Grand Rapids Pipeline
partnership, which
is jointly owned by
Phoenix and a wholly
owned subsidiary
of TransCanada.
TransCanada expects
to apply for regulatory
approval for the
project next year.
Energy company Enbridge has entered
into an agreement that will see it
transfer a group of crude oil storage,
wind power and solar power assets at
a price of $1.164 billion (900 million)
to the Enbridge Income Fund (ENF).
Enbridge Income Fund Holdings
public shareholders will have the chance
to approve the transfer at a meeting on 7
December 2012 and its closure is subject
to the completion of a $222 million
subscription receipt public offering by ENF.
Enbridge will receive cash proceeds
from the transaction of $222 million and
an additional $582 million in the form
of term debt of the fund. The fund is
expected to repay to Enbridge through
issuance of public term debt. Enbridge will
also subscribe for $305 million of additional
Enbridge Commercial Trust (ECT)
preferred units and $55 million in common
shares of ENF on a private placement
basis at the same price per security
as the subscription receipt offering,
maintaining its interest in ENF at 19.9%.
We are pleased to be moving
forward with this second billion dollar
plus drop down to the Enbridge Income
Fund, consistent with the sponsored
vehicle drop down strategy outlined
at our recent Enbridge Day investor
conference, J Richard Bird, executive
VP, CFO and corporate development
at Enbridge, said in a statement.
The drop down will enhance the
distributable cash flow of the fund and ENF, benefitting both the public investors in ENF, as well as Enbridge through our
19.9% interest in ENF. The transaction
will provide $88 million of net funding
for our large growth capital investment
programme, including further front
end bolstering of our equity base. This
funding strategy is modestly accretive
to Enbridges earning per share in
the near term compared to issuing
Enbridge common shares, and more
accretive over the medium term.
TransCanada will build the pipeline and Phoenix will use it to transport crude oil
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Titan reveals enhanced agreement with Guangdong Zhenrong Oil logistic and marine services
provider Titan Petrochemicals
Group revealed in September
it entered into a supplemental
agreement with energy
trading company Guangdong
Zhenrong Energy that
has enhanced its initial
subscription agreement
announced in August.
Under the new agreement,
Guangdong Zhenrong could
invest HK$928.2 million (92.6
million), instead of the initial
HK$175 million for 90% shares
in Titan agreed in the original
terms, and restructure all debt.
A Guangdong Zhenrong
Energy spokesperson says:
The increased offer and
improved debt restructuring
proposal underscore our
total commitment to
investing in Titan. At this
stage our immediate focus
is on supporting a creditors
restructuring and ensuring a
favourable resolution of the
key outstanding litigation
against Titan, and to fully
support Titans development.
In addition, Guangdong
would subscribe to
3,461,093,248 Preferred Share
A for a total consideration of
HK$538.2 million (HK$0.1555/
Preferred Share A) instead of
subscribing for 7 billion new
Adjusted Shares for a total
price of HK$175 million.
Guangdong agreed to
provide an equity line of
up to HK$390 million by the
subscription of a maximum
780 million Preferred Shares
B at HK$0.50 per Preferred
Share B, in tranches of
HK$10 million each, during a
period of five years from the completion of the subscription.
Patrick Wong Siu
Hung, executive director
of Titan, says: The new
board has made significant process over the past
three months. It received
Guangdong Zhenrongs
intention to restructure
Titans debt and take over
the company in July and
concluded the subscription
agreement with Gunagdong
Zhenrong in August.
Subsequently, it gained
approval from Guangdong
Zhenrongs shareholders for
its plans for Titan. In addition,
Guangdong Zhenrong made a
further move by acquiring Tsoi
Tin Chuns remaining 45.47%
stake in Titan to become its
single largest shareholder.
We believe the supplemental
agreement is by far and away
the most compelling option
of all those that have been
disclosed for Titan creditors
and shareholders.
Guangdong Zhenrong is Titans largest shareholder
terminal news
TANK STORAGE December2012 9
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terminal news
10 December2012TANK STORAGE
Singapore LNG announces new storage tankSingapore LNG is to develop a
fourth storage tank at its new
liquefied natural gas (LNG) terminal on Jurong Island.
The new S$500 million
(319 million) tank, slated
for completion by 2017,
will increase the terminals
storage capacity to 9
million tonnes a year.
Phase 1 of the Jurong Island
terminal will come online next
year when the construction
of two LNG storage tanks with
a total capacity of 3.5 million
tonnes is complete. A third
LNG storage tank is expected
to come online later in 2013
and will boost capacity to
6 million tonnes per year.
The terminal, designed
to feature a maximum of six
storage tanks, will enable
Singapore to import LNG from
around the world. Singapore
LNG says a fifth tank could be developed in the future,
or even a second terminal.
The project was unveiled
on 24 October at the
Gas Asia Summit, by Mr S
Iswaran, second minster
for Trade and Industry.
Puma Energy and Medco Energi sign agreementIn Indonesia, midstream and
downstream energy company Puma
Energy is to buy a 63.88% stake in PT
Medco Sarana Kalibaru, a subsidiary
of PT Medco Energi Internasional.
The two companies announced
their strategic alliance in October.
The agreement includes a 22,700m3
fuel storage terminal in Tanjung Priok
International Port, North Jakarta and a
dedicated jetty and truck loading bays.
The agreement is expected to
close at the beginning of December,
subject to regulatory approvals. The
new venture will be called PT Puma
Medco Petroleum and will continue to
supply fuel products such as High Speed
Diesel to clients across Indonesia.
Lukman Mahfoedz, president director
and CEO of MedcoEnergi, says: We
have entered into this strategic alliance
designed to bring together strengths
and expertise of both companies
to create the best fuel trading and
distribution business in Indonesia and
the surrounding region for the benefit of our customers, employees and
other stakeholders in the country.
Singapore LNG is adding to its terminal on Jurong Island with a fourth storage tank
Sinopec develops new $850m project in Indonesia AsiaslargestrefinerSinopecisdevelopingan oil storage terminal that will become the largest in Southeast Asia.
To be built on 360 hectares in Indonesias Batam Free Trade Zone, the $850million(660million)PTWestPointTerminalwillbeSinopecsfirstfacilityofsuchsizelocatedclosetoAsiasoiltradinghubSingapore.Thefacilitywillhaveacapacityof16millionbarrelsfor
thestorageofcrudeandrefinedfuels.Sinopec Kantons Holdings will hold a
95%shareintheterminal,whichisexpectedto take between 18 months and two years tocomplete.ThePresidentofIndonesia,Susilo Bambang Yudhoyono, is expected to attend the ground breaking ceremony scheduledfor10October,Reutersreported.
Arefineryandpetrochemicalfacilitycould be built in a second phase.
Armada plans 1.5million m3 storage facility in Malaysia Armada Sdn Bhd is developing a
new oil and gas storage facility
and refinery in Malaysia. Costing RM8.5 billion (2 billion),
the Sabah Oil Terminal will be
established in two phases. The first phase will see an investment of RM4.7
billion for the construction of 1.5
million m3 of crude oil storage and
50,000 barrels of crude oil for refinery, related infrastructure, and housing.
Phase II covers the building
of the refinery and other support facilities for an additional RM3.8
billion. No details on project
funding have been revealed.
Armada will break ground on
facility at the beginning of 2013,
with the entire project predicted
to take between four and five years to complete. It will be built
on a 1,000-acre site in Sipitang Oil
and Gas Industries Park, Sabah.
An estimated RM61.13
billion has been invested this
year in developing oil and gas
projects across Malaysia.
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terminal news
TANK STORAGE December2012 11
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Buckeye seeks permission to charge market-based rates in NYCBuckeye Pipeline, part ofBuckeyePartnersownerandoperatorofthelargest independent liquid petroleum products pipeline hasfiledanapplicationwith the Federal Energy Regulatory Commission (FERC)seekingpermissionto charge market-based ratesfordeliveriesofrefinedpetroleum products to the New York City market and surrounding areas.
The application comes afteranumberofairlinescomplained that Buckeyes deliveryratestoNewYork were unjust and unreasonable under the Interstate Commerce Act basedonacostcover-recoveryrationale.
ApprovalfromFERCwould allow Buckeye to set its rates based on competitiveforces.
Delta Air Lines, United/Continental Airlines, JetBlue Airways and US Airways allfiledacomplainton20 September, accusing BuckeyeofchargingtoomuchforthedeliveryofproductfromNewJerseytofivedestinationsonits Long Island system, includingdeliveriesofjetfueltotheNewark,LaGuardia and JFK airports.
Buckeye Pipeline believestheNewYorkCityarea market is robust and highlycompetitive,withNewYorkHarboroneoftheworldsmostactiverefinedpetroleumproductsmarkets. The company says that it is appropriate that it be permitted to charge market-basedratesforitsservicesinthisinvestment.
12 December2012TANK STORAGE
terminal news
Vopak receives multisite ISCC for biofuels storage terminals Vopak has been awarded the first multisite International Sustainability
and Carbon Certification (ISCC) for a number of its storage terminals.
The company certified its first terminal in Rotterdam on 13 December 2011. Rotterdam
is the biofuels hub of Europe, Maurice Houben,
Vopaks sales and marketing manager for
global vegoils and biofuels, explains. Many
traders and blenders ship their biofuels via the
port and were auditing their supply chains,
resulting in audit requests for our terminals.
The multisite certificate applies to five Rotterdam-based terminals, two facilities in
Houston, US and one in Jakarta, Indonesia.
Vopak is already looking to expand on this
and announced it is considering adding
terminals in Hamburg and Barcelona to
the certificate in the next 12 months.The plan is to have a terminal in
Singapore certified by July 2013.The certification is another step to
further enhance our biofuels terminal
network and to remain a reliable partner
for both our local and international ethanol
and biodiesel customers, Vopak says.
The company was guided by
Control Union Certifications. The entire process took about six months.
The time was spent on preparation,
setting-up the internal ISCC team, creating
training documents, incorporating the ISCC
internal audit in the general company audit
approach and executing external audits at the
corporate office and three storage locations.The costs incurred consist of external
auditing and certification costs on top of the man-hours invested to integrate
the certification requirements in Vopaks standard way of working.
In order for biofuels to access the European
markets and count towards the biofuels
blending mandates, specific sustainability requirements must be met by the companies
involved in the biofuel supply chain. Customers
that need ISCC certified storage can use Vopaks terminals without having to worry
it is an automatic confirmation that they operate according to sustainability standards.
Between 5 and 7.5% EBIT share of Vopaks
capacity is used for the storage of biofuels
and vegoils and the company believes
that going forward renewable fuels will
remain part of the transportation mix.
Eight Vopak storage terminals have been ISCC certified
Buckeye to offer crude oil services at Albany storage terminal Buckeye Partners is to offer crude oil
services at its storage terminal in Albany,
New York after forming a long-term
agreement with an Irving Oil subsidiary.
Under the agreement, Buckeye will provide
around 1.8 million barrels of oil storage, off-
loading unit trains and throughput when the
terminal opens by the end of the year.
Buckeye president and CEO Clark
Smith says the offering of services is part
of our strategy to increase and improve
the utilisation of our existing assets.
Buckeye says it will modify the
terminal so that it can handle ethanol in
addition to crude oil, with a total capacity
of over 135,000 barrels per day.
Rail transport has become a critical
component of the logistics chain as
domestic crude oil production has
increased significantly, adds Smith.
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terminal news
TANK STORAGE December2012 13
BP begins Adelaide fuel terminal expansionBP has broken ground on the planned expansionofitsLargsNorthfuelstorageterminal in Adelaide, Australia.
UnderPhaseIofthe$20million(15million)project,BPwillbuilda new 30 million litre storage tank thatwillallowlargervolumesofdiesel to be stored at the site.
Adding to our storage capacity inAdelaidewillallowustofurtheroptimiseshippingoperationsfromourKwinanarefineryinWestern
Australia and capture the opportunities presented in South Australia, says BP AustralasiapresidentPaulWaterman.
BPhasalsoinvested$4milliontoupgradethestorageterminalsfirefightingsystemandinstalledavapourrecoveryunitatthecostof$2million.
Theexpansionoftheterminalwasannounced in April last year and BP has sincebeenfinalisingplans,clearingthesite and undertaking ground works.
The company says it is looking
tospendafurther$20millionattheLargsNorthterminaloverthenextfiveyears.BPsaysthat,subjecttofinalapprovals,thisaddedcapitalinjectionwillimprovereliability,reduceriskandfurtherimproveenvironmentalperformanceatthefacility.
Wealsoplantocontinuetoinvestinourterminalinfrastructuretoreduceriskandensureouroperationsaresafe,reliableandabletomeettheneedsofourcustomers,Watermanadds.
Mercuria and Sinopec Kantons collaborateMercuria Energy Asset Management
(MEAM), a wholly owned subsidiary
of Mercuria Energy Group, and
Sinomart KTS Development, a wholly
owned subsidiary of Sinopec Kantons
Holdings, are to set up a global
bulk liquid storage JV following the
signing of binding agreements.
Under the agreements, Sinomart
will acquire a 50% equity interest in
European bulk liquid storage operator
Vesta Terminals from MEAM. Vesta
Terminals owns around 1.6 million
m3 of petroleum products and
biofuels storage at three terminals
in Antwerp, Flushing and Tallinn.
The transaction is subject to the
completion of certain conditions, after
which Vesta Terminals will continue to
provide storage services to existing
and new third party customers
alongside its new shareholders.
Paul Chivers, Mercurias group
head of corporate development,
attended the signing of the sale
and purchase agreement on 15
October. He says: This transaction
further underlines the significance Mercuria places on our relationships
in China and the close international
co-operation of Mercuria with
the Sinopec Kantons group.
The entry of Sinomart as a
major shareholder in Vesta Terminals
strongly supports Mercurias
strategic plans for the future, and
for Vesta Terminals employees and
customers it represents a strong vote
of confidence in the business.Bank of America Merrill Lynch
was Mercurias financial advisor during the transaction.
-
terminal news
14 December2012TANK STORAGE
GulfCoastAsphaltplans oil terminal expansion GulfCoastAsphaltislookingto expand storage at its Alabama, US-based oil terminalby71milliongallons.
The expansion project would see the construction of20newstoragetanksforoilfromCanadasoil-rich tar sands.
AccordingtoGulfCoastAsphalts plans presented to regulatory agencies and
localofficials,theoilwillbeshippedfromCanadaviarailcars and then pumped fromanunloadingfacilityto the storage terminal on a new pipeline to be built underthelocalMobileRiver.
The company has alreadyreceivedplanningpermission to break ground on the pipeline.
Theplanshavebeen
filedwiththeAlabamaDepartmentofEnvironmentalManagement, the US Army CorpsofEngineers,andthecityofMobileandincludestheinstallationofarailcarheating system. This will help toliquefythenear-solidoilsoitcan be pumped more easily.
It is not yet known what GulfCoastAsphaltwilldowith the imported oil.
Gulf Coast Asphalt will import oil from Canadas oil-rich tar sands
Murphy Oil to open up new subsidiary Murphy Oils board of directors has approved
a plan to open a US-based downstream
subsidiary, Murphy Oil USA Inc.
The move, subject to customary
conditions including confirmation of the tax-free nature of the transaction and
receipt of customary regulatory approvals,
will create an independent, separately
traded company. The spin-off of Murphy
USA is expected to be finalised next year.Murphy believes that creating two
publicly traded companies would
offer a number of advantages.
Separating these two businesses will
allow each to unlock its own potential for
growth. We have built two strong but distinct
businesses, chairman of Murphy board,
Claiborne Deming said in a statement.
Murphy will be a pure-play exploration and
production company with strong returns
and attractive investment opportunities,
while Murphy USA will be a leading retailer
with over 1,100 retail gasoline outlets.
Steven Coss, president and CEO of
Murphy, adds: We look forward to these two
separate, well positioned companies growing
and prospering in their respective industries.
The board of directors also authorised a
special dividend of $2.50 (1.90) per share for
a total dividend of approximately $500 million.
The dividend is payable on 3 December 2012
to holders of record as of 16 November 2012.
Furthermore, the board has approved
a share repurchase programme of up to $1
billion of the companys shares of common
stock. Murphy may utilise a number of different
methods to effect the repurchases, including
open market purchases, accelerated share
repurchases and negotiated block purchases.
These announcements are consistent
with our commitment to creating value
for shareholders, Deming adds.
Statoil and Samsung to develop storage unit for Heidrun Oil and gas company Statoil has signed a letter ofintentwithSamsungHeavyIndustriestobuildapermanentfloatingstorageunit(FSU)intheHeidrunoilfieldintheNorwegianSea.
The contract is worth an estimated $230 million (176million)andgivesStatoil the option to purchase two additional unitsinthefuture.Thenew storage unit, with anexpecteddesignlifeof30years,willreplacethe existing buoy loading systemonthefield.
Samsung will carry out engineering, procurement andconstructionservices.Engineering will start immediately and the unit is expected to be on location at the Heidrun fieldinthefirsthalfof2015.
The procurement process was based on competition which involvedworld-classpre-qualifiedshipyardsandSamsung presented the bestoveralloffer,meetingStatoilsrequirementsforHAS, cost and quality, says Anders Opedal, head ofprojectsatStatoil.
Our ambition is to maintain Heidrun production at least until 2045,saysMortenLoktu,StatoilsheadofoperationsonthenorthclusteroftheNorweigen continental shelf.Toreachthisgoalwe need robust systems onboardandefficientand secure oil export solutions. The new storage unitwillprovidesuchanefficientandrobustoil storage solution in the Heidrun area.
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terminal news
TANK STORAGE December2012 15
OOC plans crude storage terminal in Duqm Government-owned Oman Oil
Company (OOC) is considering
building a 200 million barrel crude
storage facility at Ras Markaz in Duqm,
Oman.
Nasser bin Khamis Al Jashmi,
undersecretary at the Ministry of Oil
and Gas, says the investment needed
to establish one of the worlds largest
crude storage facilities would be big
but divulged no other information
related to financing.The storage facility will be strategic
as well as commercial for crude oil and
other products. We are planning a storage
capacity of 200 million barrels crude plus
other products, Al Jashmi was quoted as
saying. We are now in the study phase
of the project and it will be a phased
development and a big investment. We
are working hard to achieve this project.
The company is already in talks with
potential customers such as Petroleum
Development Oman. We are talking
to some clients from neighbouring
countries and also to other companies.
It will be the sole investor in the crude
storage facility, Al Jasmi adds.
OOC also announced that it is
developing an $800 million (619 million)
petrochemical plant for the production
of purified terephthalic acid (PTA) and Polyethylene terephthatate (PET). It is
currently setting up a separate company
that will make the project a reality. Based
in Sohar, Oman, the plant will source its
materials from the Sohar Refinery and produce 1 million tonnes of PTA
and PET.
VTTI considers Fujairah terminal expansion Vitol Tank Terminals International
(VTTI) is considering expanding
storage capacity at its terminal
in the Port of Fujairah.
VTTI owns 90% of the terminal,
while the government of Fujairah
owns the remaining 10% stake.
VTTI, a 50/50 joint venture between
energy trader Vitol Group and shipping
company MISC Berhad of Malaysia,
already operates 47 storage tanks with
a 1.18 million m3 storage capacity at the
port, which it says is excellently placed
to serve the major bunker market.
With this in mind, VTTI is looking to
double capacity at the site with the
addition of 1 million m3 of storage.
VTTI says it could break ground on the
expansion project at the beginning
of 2014 once plans are finalised and permits granted. The total cost of the
build has not yet been divulged.
Enbridge to expand Athabasca Terminal Canadian energy company Enbridge
is to build additional storage capacity
at its Athabasca Terminal for Suncor
Energy Oil Sands after the two companies
entered into an agreement.
The $150 million (116 million) project,
expected to be operational in the second
quarter of next year, will provide storage
for Suncors growing volumes of bitumen
from its Firebag 3 and 4 developments.
Enbridge will build a new 350,000
barrel tank as well as additional
infrastructure including new booster
pumps, meters and modifications to existing piping manifolds.
Were pleased to further strengthen
our relationship with Suncor by delivering
timely and innovative terminalling and
transportation services, says Steve
Wuori, president of liquids pipelines
and major projects at Enbridge.
Suncor has agreed to support
Enbridges investment in the expansion
project through a long-term services
agreement, during which Enbridge
recovers all operating costs, a return on
equity and all of its invested capital.
-
terminal news
16 December2012TANK STORAGE
Oil storage at Johor could reach 10 million m3
Citgos biofuel storage tank approved
Johor Petroleum Development
(JPD) believes Johor
could become one of
Asias key oil storage hubs
in the coming years.
Expansion of facilities
in Pengerang, Tanjung Bin
and Tanjung Langsat will
help bring Johors oil storage
capacity to 10 million m3
between 2017-2020.
According to Mohd
Yazid Jaafar, chief executive
of JPD, Tanjung Bin which
currently stores 840,000m3
could hold up to 3 million m3,
and Tanjung Lansats current
650,000m3 capacity has the
potential to reach 2 million m3.
At the Pengerang
complex, around 5 million
m3 of oil could be stored
there. Dialog, in partnership
with Vopak and Johors
government, is building an
RM5 billion independent
deepwater petroleum
terminal facility at the site.
Phase I of this project,
which saw an investment of
RM1.9 billion, will feature the
construction of 1.3 million m3
of storage infrastructure slated
for completion next year. The
whole project is expected to
be up and running in 2014.
Fuel company Citgo Petroleumhasbeengiventhe go ahead to build a biofuelstoragetankatitsexistingQuincyAvenueterminal in Braintree, Massachusetts.
Citgo proposed to constructa270,000gallonsteelbiofueltankatthefacility,whichwouldhold
biodieselmadefromanimalandvegetablefats.
ApprovalwasgrantedbyBraintrees planning board on a conditional basis. Conditions state that Citgo must monitor thenumberoftrucksheadedfortheproposedfacility.
According to Citgo, the projectwillhaveaminimalimpactonthetownstraffic.
Vopak completes a $1bn US private placement notes programme Vopak, the worlds largest independent tank storage provider,hasissuedanew notes programme in theUSprivateplacement(USPP)marketforatotal$1billion(770million)invariouscurrencies.Thenewissueconsistsofaseniortrancheofapproximately$900millionandasubordinatedtrancheofapproximately $100 million.
Thirty-seveninstitutionalinvestorsareparticipatingin the new notes programme,ofwhich10arenewinvestors.
The senior notes programmeconsistsofvarioustrancheswithmaturitiesrangingfrom10.5to14.5yearsandanaverageannualinterestrateof3.94%.The subordinated notes programme has a maturityofsevenyearsandanaverageannualinterestrateof4.99%.
Theproceedsofthis USPP will be made availabletowardstheendofthisyearandwillbe
used to repay outstanding debtandforothergeneralcorporate purposes.
The programme will furtheralignthematurityprofileoftheoutstandingdebt with Vopaks long-term growth strategy and willprovidemaximumflexibilityunderthecurrent1.2billionrevolvingcreditfacility(RCF).ThematurityoftheRCFwasextendedwith one additional year toupto2017atthebeginningofthisyear.
Citigroup Global Markets, JP Morgan Securities and RBS Securities acted as the joint agents on this transaction.
ForourfourthUSPPprogramme since 2001, we not only experienced a strong interest, but were also able to attract a newgroupoflong-terminvestors.ThisreconfirmsVopaks on-going access torelevantcapitalmarkets,JackdeKreij,vicechairmanoftheexecutiveboardandCFOofVopak,said in a statement.
Primestar awards EPC contract for Fujairah terminal Trading group Primestar
Energy and India-
based Leasing &
Financial Services
are moving ahead
with their oil storage
terminal in the UAE.
Earlier this month the
two companies awarded
Indian company IOT
Infrastructure and Energy
Services a construction
contract for the
engineering, procurement
and construction of the
facility, estimated to
be in the region of $82
million (64 million).
To be built in Fujairah,
the terminal will have
a storage capacity of
600,000m3 when it comes
online by mid-2014.
Primestar and Leasing
& Financial Services
began developing the
terminal after receiving
funding from a consortium
of banks led by Indias
Bank of Baroda.
31 acres of developed industrial land with compound wall near to Kakinada port, AP, India with 26000 MT of multiple storage tanks with A,B,C licenses for petroleum oils and vegetable oils built in 2 acres of land. 29 acres of land is vacant. The land is connected to port of Kakinada by a 100% own 9 KM 16 Inch pipeline to transport oil products. Additional lines can be laid. Ancillary units such as Nitrogen, DG sets, Lab, Compressors for pigging including mobile compressor, automated fire system with back up water storage, truck weighing station, oil testing lab equipment are in place. Land, assets and pipeline
are free of all encumbrances and land is well connected by road.
Please contact: Mob: +91 98666 55039, Email: [email protected]
Suitable location for oil and gas storage terminals at Kakinada Port, India:
-
terminal news
BP to sell Texas refinery for $2.5b BP is to sell its Texas City, Texas
refinery and other assets to US refiner and marketer Marathon Petroleum
for $2.5 billion (1.9 billion).
The agreement includes $600
million in cash, an estimated $1.2
billion for hydrocarbon inventories
and a $700 million six-year earn
out arrangement based on future
margins and refinery throughput.In addition to the 475,000 barrel
per day refinery, Marathon Petroleum will also acquire connected natural
gas liquid pipelines and four
marketing terminals in the Southeast
US. BP anticipates the transaction,
subject to regulatory and other
approvals, will close early next year.
Describing the sale as the
second major milestone in the
strategic refocusing of our US fuels
business, Iain Conn, CEO of BPs
global refining and marketing business, says: Together with the
sale of our Carson, California refinery in August, the divestment of Texas
City will allow us to focus on BPs
US fuels investments on our three
northern refineries, which are crude feedstock advantaged, and their
associated marketing businesses.
BP has raised over $35 billion
since the beginning of 2010
through asset divestment and
expects this to reach $38 billion
by the end of next year. BP says it
decision to divest the Carson and
Texas City refineries are part of a major strategic refocusing of the
companys global refining portfolio.BP still owns around 8,000 BP-
and Arco-branded sites across
the Midwest, Pacific Northwest and along the East Coast, and in
a statement said it will remain a
significant retailer of fuels in the US. This sale will reduce BPs presence
in the Southeast US, however it
remains firmly committed to growing and strengthening our BP-branded
retail network and the value of
the BP brand east of the Rockies in
partnership with BP-branded jobbers
and dealers, says Doug Sparkman,
president of the companys East
of the Rockies fuels business.
Marathon Petroleum is the buyer of BPs Texas refinery
TANK STORAGE December2012 17
Vopak, Greenergy and Shell complete purchase of former Coryton refinery Independent tank storage service provider
Vopak, petrol and diesel supplier Greenergy
and oil company Shell UK have completed
the acquisition of the former Coryton refinery.The joint venture purchased the Essex,
UK-based facility from Petroplus Refining and Marketings administrator, PwC.
The transaction, which was first announced earlier this year in June,
was finalised on 28 September.The three companies will invest in
the facility to be named Thames Oil
Port and develop it into a state-of-the-
art import and distribution terminal for oil
products, to be managed by Vopak.
The new terminal initially will be able
to store around 500,000m3, although this
could be doubled in the future.
MVP to store crude oil at Gateways Illinois storage terminal Gateway Terminals, a subsidiary of
Seacor Holdings, is to provide storage
services to MV Purchasing (MVP) for its
Bakken crude oil from 1 December.
The two companies signed
an agreement, announced on 20
November, which will see MVP utilise
Gateways intermodal storage and
shipment facility in Sauget, Illinois.
Gateway has a proven track record
of safely moving large volumes of product
from rail to storage and into barge and
we are looking forward to working with
MVP well into the future, Gateway
Terminals president Tim Power says.
Gateways Sauget-based terminal
can offload 100 car unit trains in less than 24 hours and is located on the
Alton and Southern Railroad, providing
access to all major Class I railroads.
The terminal opened in 2008 and has
been primarily used in clean petroleum
products and fuel ethanol service. It
began offering storage and transfer
services for shale oil in June this year.
-
terminal news
Decal, a storage and handling service
provider for oil and petrochemical
products, says the expansion of
its Taboguilla Island Terminal in
the Pacific side of the Panama Canal is almost complete.
Decal has invested $65 million
(50 million) to almost double
capacity at the storage terminal
by 181,500m3 to 356,500m3.
Tanks will be able to receive heavy fuel
oil, cutter stocks, diesel and marine gasoil.
The project will enable Decal to
handle heavier products. Pump loading
rates have also been improved and
barge loading capacity increased
from two to a maximum of four
simultaneously, or one tanker up to
7,000 dwt plus three barges at a time.
It will also feature in-tank blending
equipment for fuel oil and the fuel oil
tanks will be heated with diathermic oil.
Loading lines will be electrically traced.
Regarding safety, each tank will
have an overfilling prevention device independent of the level gauge. Foam
injection will also be available. The whole
terminal will be surrounded by a fire water ring fitted with fixed monitors and hydrants.
Environmental protection measures
include the treatment of all contaminated
effluents in the existing plant. All tanks will
have a plastic layer under the bottom to
avoid underground water contamination
via any leakage through the base.
Marine loading arms will be
used instead of hoses and new
skimmers will be provided.
18 December2012TANK STORAGE
Decal Panama terminal expansion almost complete
Decal spent 50 million doubling capacity at its Taboguila Island Terminal
-
TANK STORAGE December2012 19
terminal news
BP Mozambique spends $7 million on fuel terminal upgrades Oil company BP has spent over $7 million (5.4 million)
this year alone renovating its Nacala fuel terminal in
the northern province of Nampula, Mozambique.
The upgrades, which were originally postponed
due to capital shortages, will enable the terminal
to facilitate large sea-going vessels and compete
with nearby ports, according to Salvador
Namburete, Mozambican Minister of Energy.
Namburete was reported to have said that the
facilitys infrastructure enhancements will enable BP
to continue supplying fuel locally and further afield as it works to meet growing demand for fuel in the
nation. BP has a 16% share in the countrys oil market.
With the opening of the rehabilitated
fuel terminal, BP will consolidate its second
position on our country in fuel supply,
Namburete was quoted as saying.
Construction work at the Nacala terminal
created 200 new jobs, according to BP Mozambique
general director Martinho Guambe, who reportedly
said: This investment shows the compromise the
company has in the fuel market in Mozambique,
and we are determined to expand our business.
In addition, BP is looking to upgrade
its Matola-based fuel terminal in the
central province of Sofala.
Odfjellto develop storage terminal at Le Havre Port
Vopak and SABIC to develop new storage terminal in Jubail
Maastank to expand storage capacity in Rotterdam
Odfjell Terminals is to develop a bulk
liquid storage terminal at Le Havre port in
the Haute-Normandie region of France
after its project proposal was selected by
Grand Port Maritime du Havre (GPMH).
Planned for a 30-acre plot located along
the Grand Canal Maritime, the first phase of the Greenfield terminal is thought to feature
around 200,000m3 of storage capacity.
A feasibility study will be carried out
in the coming months and Odfjell and
GPMH aim to finalise the project details and reach an agreement on a Site
Reservation Protocol by 1 April next year.
Le Havre Port is one of the largest
ports in northern Europe.
Vopak, the worlds largest independent
tank storage service provider, and
Saudi Basic Industries (SABIC) have
formed a joint venture to develop a
new storage terminal in King Fahd
Industrial Port in Jubail, Saudi Arabia.
SABIC holds a 75% stake in Jubail
Chemical Storage and Services
Company (JCSSC) and Vopak holds
25%. The construction of the facility
will be financed with the parties own resources and through external funds.
The new terminal, slated for completion
in the beginning of 2015, will be able
to store approximately 250,000m3, with
the potential for expansion in the future.
It will comprise around 40 commodity
and specialty chemical storage tanks,
complete with truck handling and
ship loading facilities for five berths. The facility will help serve Jubails
growing demand for petrochemicals
and the expansion of downstream
industries in the region.
Maastank is to expand its storage
terminal in Botlek, the Netherlands,
after signing a contract with the
Port of Rotterdam Authority.
Maastank is a specialised
terminal for the storage and
transshipment of vegetable oil
and fats as well as raw materials
for the oleochemical industry.
The expansion project will
increase the size of the terminal
from 17,000m2 to 21,500m2 which
will allow Maastank to enlarge
its tank storage capacity from
40,000m3 to 90,000m3 in the coming
years. The company currently
has 48 storage tanks in operation
at the Port of Rotterdam.
The central Botlek Geul
location of Maastank has one
berth for seagoing ships and two
berths for inland vessels.
-
terminal news
20 December2012TANK STORAGE
Dutch terminal unveils new train loading stationNetherlands-based Botlek Tank
Terminal (BTT) has given the
go-ahead for a consortium of
contractors to start work on
a new train loading station.
The station, with two 340m
tracks, will be able to load six
wagons simultaneously, at a
rate of 400 tonnes per hour.
Construction of this new rail
link will cost 2 million and
take around six months.
The new train loading
station is BTTs response to
growing customer demand
for rail transport. It will be used
initially to load block trains with
biodiesel and will be modified in due course to handle other
oil products such as jet fuel,
petrol, diesel and edible oils.
Traffic will begin with two trains a week before
throughput increase finally up to two trains a day. BTTs new train loading station comes in response to customer demand
BP agrees to fine and oil spill response improvements BP Products North America, the US EPA and the Department ofJustice(DoJ)havereachedanagreementregardinganoticeofviolationtheEPAissuedtoBPin2006relatedtospill response training exercises conducted at the Curtis BayproductterminalinBaltimore,Marylandin2005.
TheEPAlodgedconcernsoverthetrainingexercises,whichinvolvednoactualoilspillages,attheterminal.Italleged that BP breached state regulations which require oilstoragefacilitiestocarryoutoilspillpracticedrills.
Undertheagreement,BPwillpaya$210,000(162,600)penalty and carry out independent audits at other product terminals to assess response plans and share those results with the EPA. In addition, the company is applying best practicesforoilspillresponsetoitsoperatingsites.
BPiscommittedtosafeoperationsandweconductregularemergencyresponseexercisesatourfuelterminals,StevePankhurst,presidentofBPPipelinesNorthAmerica,saidinastatement.In2005,ourspillresponsecontractordidnotmeetBPorEPAsstandardsforrapidresponseduringdrills.Thiswasunacceptable to us and we took action to replace the contractor.
OilstoragefacilitiessuchastheCurtisBayTerminal,whichcanstorearound22milliongallonsonoil,musthaveanoilspillresponseplaninplacefeaturingstafftraining,spill response equipment and a worst case scenario strategyforthecontainmentandclean-upofoilspills.
Since 2010, BP has strengthened and shared industry best practicesforoilspillresponseandweareassuringthattheselearningsareinplaceinourfacilitiesglobally,Pankhurstsays.WeresharingthesebestpracticeswithEPAandputtingthemintoactionandourproductsterminalsaspartofthisagreement.
-
terminal news
TANK STORAGE December2012 21
OdfjellHolding secures funds for project expansions OdfjellHolding,asubsidiaryofOTLGC.V.ajointventurebetweenOdfjellTerminalsandLindsayGoldberghassecureda$200million(154million)five-yearsecuredcreditfacilityfromagroupoffivebanks.
Thefundsareavailablethroughafive-yearreducingrevolvingcreditfacility.OdfjellHoldingscanalsoobtainincreasesintheprincipalamountunderthisfacilityofuptoanadditional$100million.
TheownerofOdfjellTerminalsHoustonandthebrownfieldprojectOdfjellTerminalsCharleston,OdfjellHoldingwillusethesefundstofinanceexpansionprojectsatboththesesitesandtorefinanceanexisting$54millionindebtednessatOdfjellTerminals.
OdfjellTerminalshasbrokengroundontheCharlestonterminal,whichwillhaveastoragecapacityof80,000m3 when it comes online next year. The company is also considering other expansion projects across North America.
Tesoro sells marine terminal and pipelines to Tesoro Logistics Tesoro Corporations subsidiary
Tesoro Refining and Marketing has sold its Long Beach marine terminal
and Los Angeles short-haul pipelines
to the partnership company Tesoro
Logistics for a total consideration
of $210 million (160 million).
This terminal, which is located
near Tesoros refinery in Wilmington, California, features six storage
tanks with a total 235,000 barrel
capacity, related pipelines with
70,000 barrels per day throughput
and a two-vessel berth dock leased
from the city of Long Beach.
Tesoro Logistics acquired the
terminal and related infrastructure
for $210 million; $189 million in cash
and the partnerships equity valued
at approximately $21 million.
The transaction marks Tesoros
second sale of assets to the
partnership and represents the first significant addition of third party volumes into the TLLP system, one of
the partnerships primary business
objectives, says Greg Goff, Tesoro
Corporations president and CEO,
and chairman and CEO of Tesoro
Logistics. We are committed to
capturing the full value of our
logistics assets and growing the
partnerships distributions.
In connection with the closing
of the transaction, Tesoro and
the partnership entered into a
throughput and use agreement for
the marine terminal assets and a
transportation services agreement
for the short-haul pipeline assets.
Both of these agreements
include minimum throughput
commitments, annual price
escalations and 10-year initial
contract terms. Tesoro Logistics
expects that this contribution will
result in an estimated $22 million
of additional annual EBITDA,
approximately half of which is
expected to be from third parties.
-
Odec expands for biofuels Odec Tankstorage is increasing its storage
capacity in a bid to handle more biofuels.
The company recently acquired a 9,130m3 terminal
area in Sdertlje oil harbour, Sweden. The terminal
is now under development and, upon completion,
will feature four new tanks for biofuels storage.
Phase 1 of this project is slated to begin at the end
of this year and includes a 6,000m3 insulated tank for
biofuels. This tank will be put into operation in mid-2013.
Tradebe Port Service terminal to come online Environmental services provider Tradebe is
on track with the construction of its storage
terminal in Barcelona Port, Spain.
The Tradebe Port Service terminal is due to be
operational at the beginning of next year when it
will be able to handle 450,000m3 of clean petroleum
products and fuel oil for the domestic and international
markets, via access to a new 16.5m deep sea jetty.
Tradebe says it could expand the terminal
once the first phase comes online as its clients who supply the Mediterranean market
are providing good opportunities.
IL&FS plans storage terminal in Fujairah IL&FS Prime Terminals FZC is developing a storage tank terminal in Fujairah, UAE.
The terminal will comprise 15 storage tanks with a total storage capacity of 850,000 tonnes.
IL&FS Engineering and Construction has been
selected to build the terminal and received a Letter
of Intent (LOI) for AED304 million (64 million).
The contract is for engineering, procurement
and construction of the project, which is
expected to take 17 months to complete.
New storage tanks proposed for Ceylon Petroleum sites Sri Lanka Ministry of Petroleum Industry is looking to build new storage tanks at two Ceylon Petroleum storage terminals.
The ministry has submitted a proposal to the National Planning Department for the construction of new tanks in Kolonnawa and Muthurajawela facilities at a cost of LKR5 billion (30 million).
Under the proposal, seven tanks are planned for Kolonnawa and three would be erected in Muthurajawela. The project is slated for completion in 2015.
news in brief...ArcLight acquires Blackwater Midstream
Longwei Petroleum brings Huajie fuel storage depot online
Givoteliminates storage woes with new oil tank
Energy-focused investment firm ArcLight Capital Partners has
finalised its acquisition of Blackwater Midstream.
Blackwater CEO Michael Suder
said the company was extremely
pleased to have finalised our merger and join the ArcLight group of
portfolio companies.
He said the deal will allow
Blackwater to continue to grow and
expand on the successful business
plan that we have executed over
the last four years.
We believe low, sustained gas
prices and surging crude production
will result in increased bulk storage
needs to serve the domestic refining, ArcLight managing partner and co-
founder Daniel Revers was quoted
as saying, adding that Blackwater
is poised to take advantage of the
growth in downstream liquid bulk
storage opportunities.
Blackwater has a 900,000
barrel storage facility in Westwego,
Louisiana; 221,000 barrels of capacity
in Brunswick, Georgia; and 177,000
barrels of capacity Salisbury,
Maryland.
Chinese energy company Longwei
Petroleum Investment Holding
has brought its newly acquired
fuel storage depot online.
Longweis RMB700 million (85
million) asset purchase of Huajie
Petroleum was finalised in late September. The company has
since received its first shipment of petroleum to the depot and is now
selling product to its customers.
Included in the asset
purchase is a Fanshi County,
Shanxi province-located tank
storage farm with a total storage
capacity of 100,000 tonnes.
The Huajie facility nearly
doubles our storage capacity to a
total 220,000 tonnes and extends
our reach into the fast-growing
industrial region of northern Shanxi
province, Longweis chairman
and CEO Cai Yongjun says.
He adds the asset purchase
was completed using our
own cash resources without
dilution to our shareholders.
Longwei also acquired a
dedicated rail spur, a vehicle
loading and uploading station,
an office building and land rights for 98 acres adjacent to
the main regional rail line.
Closing on the Huajie facilities
has allowed us to increase our
regional presence and attract new
customers, says Michael Toups,
Longweis CFO. With the addition
of the Huajie facility, we have
strengthened our lead as the largest
non-state-owned fuel storage and
distribution business in province.
Israeli oil and gas exploration
company Givot Olam will no
longer have to worry about
its oil storage needs as it
works to develop its Meged
well, near Rosh HaAyin.
The company has rented a
new 300,000-barrel oil storage
tank sufficient to handle increasing capacity from the well.
The new lease is for two years,
due to end on 30 September
2014, but this could be extended
for a further two years.
The oil tank requires 36,000
barrels of oil to be operational.
Above this quantity, the company
can sell oil to third parties.
The lease on Givots
current, smaller storage tank
is due to expire and there is
no option to renew it.
22 December2012TANK STORAGE
terminal news
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TANK STORAGE December2012 23
Vopak JV opens storage terminal in the Netherlands
Vopak Terminal Eemshaven,
a 50/50 joint venture
between Vopak and NIBC
European Infrastructure Fund
(NEIF), was opened at the
beginning of October.
Operated by Vopak, the
new terminal for strategic
oil reserves has a storage
capacity of 660,000m3
serving the Netherlands and
other EU member states. This
initial storage space, which
is made up of 11 60,000m3
tanks, has been leased out
for a long-term period but
there is potential to expand
the terminal to be able to
store a total 2.76 million m3
in future. It also features a
jetty for sea-going vessels.
Marijke van Beek, Major
of Eemsmond; Harm Post,
director of Groningen
Seaports; Jeroen Drost, NIBC
chairman and CEO; and Eelco
Hoekstra, CEO and Chairman
of the executive board of
Royal Vopak were present for
the terminals inauguration.
Van Beek comments:
The arrival of Vopak is
for me a symbol of the
strength and growth of
Eemshaven, an energy port
approaching maturity.
Post describes the new
storage terminal as a very
interesting addition to our
existing energy initiatives,
while Drost believes the facility
represents another important
step for the Netherlands in
maintaining a leading global
position in oil logistics.
Designed and to be
operated in compliance
with European and Dutch
environmental standards,
the terminal brings Vopaks
worldwide network of tank
storage terminals to 84. For
Vopak this is the first terminal
built for strategic oil reserves
and it was developed after
constructive consultation
with all stakeholders,
including NGOs, which
was particularly important
in light of the proximity to
the Waddenzee nature
reserve, says Hoekstra.
Vopak Terminal Eemshaven
terminal news
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24 December2012TANK STORAGE
terminal news
Shell withdraws business from OdfjellTerminals Rotterdam Oil company Shell has
ended its storage contract
with Norways tank storage
company Odfjell Terminals
Rotterdam (OTR) and will
withdraw its business from
the terminal, located at
the Port of Rotterdam.
The decision, of which
Odfjell was informed in August,
came about after the terminal
was shut down on 27 July for
breaching safety standards.
At the time of the closure,
Odfjell Terminals interim
president Ake Gregertsen
said: Odfjell is determined
to improve integrity of the
terminal in order to ensure
safe operations. It is our
commitment to do whatever
is necessary to bring OTR back
up to industry standards.
However a spokesperson
for Shell Netherlands said Shell
offered Odjfell a period of 30
days to cure the breach to
which they did not respond.
Today they are still in
breach of material obligations,
we see no improvement of
their performance and have
no reason to believe that a
substantial improvement of
performance of releationship
can be made in the short
term. We have therefore
informed Odfjell we have
terminated the agreement
as per 11 September
2012, the spokesman
was quoted as saying.
It is not yet known
if Shell will take legal
action against OTR for this
breach of contract.
Nevertheless, Shell says
the withdrawal will not
affect its customers as it has
already secured alternative
storage in Rotterdam,
Antwerp and Amsterdam. Shell has taken its business elsewhere
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TANK STORAGE December2012 25
terminal news
JV oil storage terminal in Fujairah already underway
Gibson Energy to increase storage at Hardisty Terminal
Ground has broken on a new
oil storage terminal in Fujairah.
IL&FS Prime Terminals,
a joint venture between
IL&FS Maritime Infrastructure
Company (IMIC) and PTF, are
investing Dh477 million (100
million) into the new facility.
IMIC will own 80% of the
terminal and operate the
14 storage tanks, with PTF
owning the remaining 20%.
Phase I of the project,
construction of which is
already underway, will
see 333,088m3 of the total
632,678m3 storage capacity
built within two years time.
Contracting company ANC
Foster is currently conducting
earthworks for the tanks.
Shahzaad Dalal,
chairman and CEO of IL&FS
Investment Advisors, was
quoted as saying: The main
construction package is
currently in tendering phases.
Three consortia have placed
bids for the project.
The land on which the oil
terminal will be built is being
leased from the government
of Fujairah under a 50-year
contract. Dalal expects a
full return on investment
within eight to 10 years.
The project marks an
important step for IL&FS
as it seeks to expand its
expertise in developing,
executing and managing
BOT infrastructure projects
in the fast growing Middle
Eastern and African markets.
As there is a great need
to develop infrastructure
in these regions, many
governments are turning to
experienced private sector
players, who can efficiently implement projects, Dalal
was reported to have said.
Midstream energy company Gibson Energy is to expand its Hardisty Terminal in Alberta, Canada and will begin with theconstructionoftwooilstoragetanks.
Withatotalstoragecapacityof800,000bblsthesetwotankswillformtheinitialanchorforanexpansionofthefacility.Sitepreparationforthetwo 400,000 bbl tanks is scheduled tostartbytheendofthisyear,withcommissioningexpectedforearly2014.
The new tanks will be connected to third party receipt pipelinesandfacilitiesandwillhaveconnectivitytoallcurrentexportpipelinesfromHardisty.
Thisinitialdevelopmentonoureastern lands at Hardisty Terminal starts totakeadvantageofthecompanysstrategic184-acreundevelopedlandpositioninthearea,saysRickWise,GibsonsseniorVPofoperations.
WeexpectcontinuedgrowthatourHardisty Terminal as oil sands and conventionaloilproductioncontinuetodevelopatanacceleratedpace.
In similar news, Gibson has signed a letterofintentwithaunittraindevelopertoexploreunittrainshipmentsfromtheHardistyarea.TheproposedfacilitywoulduseCanadianPacificsNorthMainLinefortransportingcrudebyrailto markets across North America.
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26 December2012TANK STORAGE
terminal news
Canadian National Railway Company
(CN) and crude oil company Tundra
Energy Marketing have signed a
Memorandum of Understanding to
build a crude oil railcar loading terminal
near Cromer, Manitoba in Canada.
The new terminal will begin loading
30,000 barrels per day of crude oil into
rail cars in the second quarter of next
year, helping to benefit Bakken crude oil producers in Manitoba and Saskatchewan.
The Cromer transload terminal
is expandable, with the potential to
handle complete crude oil unit trains
of more than 100 cars, which will
generate greater efficiencies and market reach for Canadian crude oil,
says Jean-Jacques Ruest, CN executive
VP and chief marketing officer.Tundra Energy president, Bryan
Lankester, adds: This project, combined
with 410,000 barrels of oil storage currently
under construction at our terminal in
Cromer a six-fold increase in existing
capacity will provide us with access to
alternative North American markets for
Williston Basin crude oil over CNs network
at a time when there is inadequate
pipeline takeaway capacity.
Ruest comments: We expect
to move more than 30,000 carloads
of crude oil in 2012, and we believe
we have the scope to double this
crude oil business next year.
The terminal will benefit Bakken crude oil producers in Manitoba and Saskatchewan
CN and Tundra Energy sign MoU
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TANK STORAGE December2012 27
terminal news
Magellans De Moines biodiesel terminal online Magellan Midstream Partners biodiesel
storage and blending terminal is now
operational in Des Moines, Iowa.
The facility can store and mix 5,000
barrels of 2%, 5%, 10% and 20% biodiesel
blends. The 5,000 barrel storage tank
is heated, insulated and features an
accompanying pipeline network to the
track rack that is also heated and insulated.
This system offers our customers
accuracy, quality and a variety of
biodiesel blend options, Shawn Baker,
Magellans director of transportation and
marketing, was reported to have said.
Magellan now offers biodiesel
blending across 11 terminals. Its De
Moines terminal was partly financed by funding from the US DoE.
Consortium buys 70% remaining stake in LBC Terminals Jersey Theremaining70%ofLBCTerminalsJersey has been acquired fromChallengerInfrastructureFundandChallengerLife.
AdvisedbyAccessCapitalAdvisers,aconsortiummadeupofDutchpensionfundassetmanagersAPG Algemene Pensioen Groep, PGGM and Australian superannuation investorspurchasedthe70%stakefor$297.5million(233million).
Thecompletionofthistransactionfollowsthepartiessigning a binding sale and purchase agreement in June and obtaining European Commission (CompetitionDG)clearance.
Access has been managing theinterestsinLBCforitsclients
Australiansuperannuationinvestorssince2007andwillnowmanagetheinvestmentforallinvestorsunder an agreement with LBC.
At a time when there are significantrisksontheglobaleconomichorizon,assetssuchasLBCthatprovidegoodreturnsthroughthe economic cycle are a good fitforpensionfundinvestors,saysGrahamMatthews,chiefinvestmentofficeratAccessCapitalAdvisors.
Theacquisitionvaluationisequivalenttoamultipleof9.3times the expected FY13 earnings forLBC,commentsStephenBurns,AccessheadofEurope.
Baker&McKenziewastheconsortiumslegaladviser.
Cancen finalises acquisition of Kinsella facilityInCanada,energyservicescompany Cancen Oil Canada hasfinalisedtheacquisitionofAstraEnergyCanadasKinsella crude oil terminal andblendingfacilitylocatedin Hardisty, Alberta.
Cancen initially announced the agreement in May earlier this year.
Cancen purchased the facilityfor$5million(4million);$4.5millioncashanda$500,000promissorynotebearing interest at prime plus 2%securedagainstthefacility.
The terminal is connected totheInterPipelineBowRiverpipeline system in Albertas BeaverCountyandtheblendingfacilitycanblendandstore500m3 adayofsweet,sourandheavyclean crude. It was originally put intooperationin2004,servingproducers based in west Canada.
Tank Storage magazine
previouslyreportedthatCancen planned to enhance thefacilitythetreatwasteoiland handle wastewater, while keeping capacity the same.
Norterminal plans oil terminal in Finnmark, Norway Norterminal is looking to
develop a strategic new oil
terminal in Norways Finnmark.
Norterminal plans to
break ground on the NOK1.5-
2 billion (205-273 million)
terminal in 2016 depending
on municipal proceedings
and development plans.
The terminal will be
able to store 1 million m3 of
crude oil in both storage
tanks and caverns when it
comes online. It will be able
to receive between 150 and
300 tankers of up to 300,000
dwt each year with the ability
to ship around 10 million
tonnes of crude oil annually.
Development of new
oilfields in the Barents Sea and the opening of new shipping
lanes from Russia and Norway
makes Finnmark a strategic
and suitable place for interim
storage of oil, Norterminals
owner Jacob Stolt Nielsen
was reported to have said.
We believe Gamneset
is the best location, in Sor-
Varanger. We are in a dialog
with several Russian companies
but we cant yet comment
on which companies they
are. But the response so
far has been good. Finnmark is an ideal location for Norterminals new facility
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28 December2012TANK STORAGE
terminal news
Alyeskas storage tank inspection waiver revoked In Valdez, Alaska, Alyeska Pipeline Service is working to
reinstate a waiver originally issued by the Department
of Environmental Conservation (DEC) that would delay
an inspection of one of its crude oil storage tanks.
Following a request submission, DEC awarded Alyeska a
two-year waiver in February that would postpone an internal
inspection of Valdez Marine Terminals Tank 5 until mid-2014 and
increase the time between such inspections from 10 to 12 years.
In May, however, the DEC withdrew the waiver, which
was granted subject to Alyeska agreeing to six conditions,
claiming the company failed to comply with conditions
relating to corrosion control. Under the agreement, Alyeska
agreed to provide regular rectifier logs to DEC as proof of the continuous operation the cathodic protection (CP) system.
According to the letter issued by DEC on 23 May, while
Alyeska did provide the logs as required, data revealed
the CP system was operating correctly just 26% of the
time during a six month period ending mid-April.
Stated differently, the CP system was not operated
correctly 74% of that time, the letter said. The letter went on
to say that Alyeska failed to explain why technicians failed
to recognise, investigate or correct the faulty system.
There is no indication that Alyeska personnel
recognised the significance of the problem until contacted by the department engineering staff about
the rectifier logs, the DEC was reported to have said.As a result, the department has ordered Alyeska
to take Tank 5 out of service and have it internally
inspected before 31 December 2012.
Since its revocation, Alyeska is pursuing the reinstatement
of the waiver. In a letter sent to DEC on 7 June, Alyeskas
operational director of the Valdez terminal Scott Hicks
wrote: Alyeska acknowledges that some deficiencies occurred in the Tank 5 rectifier monitoring and CP maintenance programmes between October 2011 and
April 2012, and we take these deficiencies very seriously.Alyeska operates the Trans-Alaska Pipeline System and
the Valdez Marine Terminal, which comprises 18 510,000 barrel
storage tanks measuring 250ft wide and 63ft high. Not all the
tanks are operational today as oil flow via its pipeline has fallen by more than two-thirds from the 2.1 million barrels a day in 1988.
Baltic Oil Terminals finalises name change Tank terminals company
Baltic Oil Terminals has
completed the process to
change its name to Pan
European Terminals.
The company held its