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SEPTEMBER/OCTOBER 2014 Volume No.10 Issue No. 5
REGIONAL FOCUS: ASIA
The voice of the storage terminal industry
ARA tank storage: more pain to come?Changes in the global market are impacting profitability for tank terminal operators
On the upStorage capacity in Australia is increasing in the wake of refinery closures
Expansion in the Far EastTopsafe discusses its growth plans in China
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MSC-L 297 x 420mm.indd 1 27/02/2014 13:19
TANK STORAGE • September/October 2014 1
It’s a busy time for storage operators in southeast
Asia. We’ve just heard that the long awaited
underground rock caverns in Singapore have
officially opened. Eight years after construction
started, the facility will now create an additional
1.47 million m3 of storage capacity in an attempt
to overcome the country’s land constraints.
In another major development, Malaysia has
also now opened its biggest storage facility
yet, a $600 million (€460 million) terminal in
Pengerang, boosting southern Malaysia’s
capacity by 70% to more than 3 million m3.
But it doesn’t end there. By 2015 storage
capacity in the greater Singapore region
is expected to reach 23 million m3, giving
the region the title of the world’s largest
oil-trading hub by surpassing the ARA’s
capacity of around 21 million m3.
With so much happening it’s easy to see why
the Tank Storage Asia conference is growing
so fast. This year the event has moved to the
new, larger venue of the Marina Bay Sands
and it’s expected to be the busiest yet.
One of the few good things about the
summer drawing to a close is that it also signifies
the start of the conference season and it’s set to
be a busy one for the TSM team. As well as Tank
Storage Asia, this issue will also be distributed
at Tank Storage Association in the UK, EPCA in
Vienna, NISTM in Texas and API in Las Vegas.
So if you see us at any of these,
make sure you say hello!
We hope you enjoy the issue.
Best wishes,
Margaret
Asia takes the leadcomment
Margaret DunnPublisher
Another first for southeast Asia: the Jurong Rock Caverns have now opened
contents
SEPTEMBER/OCTOBER 2014
VOLUME 10 ISSUE 5
Horseshoe Media LtdMarshall House124 Middleton Road,Morden,Surrey SM4 6RW, UKwww.tankstoragemag.com
MANAGING DIRECTORPeter PattersonTel: +44(0)20 8648 [email protected]
PUBLISHER & EDITORMargaret DunnTel: +44 (0)203 5515 [email protected]
DEPUTY EDITORKeeley DowneyTel: +44 (0)20 8687 [email protected]
ASSISTANT EDITORNatasha SpencerTel: +44 (0)208 687 [email protected]
STAFF WRITERDaniel TraylenTel: +44 (0)208 687 [email protected]
INTERNATIONAL SALES MANAGER David KellyTel: +44 (0)203 551 [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
CONTENTS
2 September/October 2014 • TANK STORAGE
Follow us on Twitter: @tankstorageinfo
news
features
Join the Tank Storage group on Linkedin to have your say on important issues
4 Terminal news
21 New French terminal enables international trade
22 Technical news
26 Incident report
41 Tank terminal update: Asia
59 The business of bulk liquids: TSA preview
108 Events listing
Ad index
28 ARA tank storage markets: more pain to come?
33 Slight slowdown but overall positivity
37 Third party terminal market enters new expansion phase
45 Australia ups storage capacity in the wake of refinery closures
102Easy access to inventory
Topsafe in China
http://www.topsafe.cn
文字简介。。。
Chemistry and EnvironmentChemistry and EnvironmentChemistry and Environment
Phase ɪɪ Terminal 140,000 M3
Phase ɪɪ Jetty DWT 80,000
31Topsafe to expand in China
CONTENTS
TANK STORAGE • September/October 2014 3
contents
Front cover courtesy of L&J Technologies
SEPTEMBER/OCTOBER 2014 Volume No.10 Issue No. 5
REGIONAL FOCUS: ASIA
The voice of the storage terminal industry
ARA tank storage: more pain to come?Changes in the global market are impacting profi tability for tank terminal operators
On the upStorage capacity in Australia is increasing in the wake of refi nery closures
Expansion in the Far EastTopsafe discusses its growth plans in China
FC_TSM_sept-oct_2014.indd 1 05/09/2014 10:20
78Fighting fire against the odds
55 Shift work and fatigue: keeping it simple
69 Fuel terminal asset protection
71 High thermal radiation from large ethanol fires
75 What you don’t know about tank farm static and lightning could make your hair stand on end
83 Tank heating: a new way of thinking
87 Why use a floating roof critical zone survey?
90 Improving confidence in tank inspection
93 In pursuit of great ground conditions
97 France: complying with the latest regulations
100 Engineering a partnership
103 Preventing loss
106 Safety first for industrial coatings
features48Storage in Singapore: Tank Storage Asia preview
Topsafe in China
http://www.topsafe.cn
文字简介。。。
Chemistry and EnvironmentChemistry and EnvironmentChemistry and Environment
Phase ɪɪ Terminal 140,000 M3
Phase ɪɪ Jetty DWT 80,000
31Topsafe to expand in China
87Why use a floating roof critical zone survey?
terminal news
Antwerp-based Noord Natie Terminals is
to build an additional 90,000m³ storage
capacity at a location adjacent to
its existing terminal. This will bring the
site’s total capacity to 440,000m³.
At the same time the company
will expand its loading facilities to
cater for the increased number of
trucks and rail car handlings.
The existing range of mild and stainless
steel tanks for dangerous and non-
dangerous products will be expanded
with four new tank pits. The 500m of extra
quay length will also be dredged to 14m.
The tanks will range from 1,300
to 5,000m³, all with dedicated
product and vapour lines.
If specific requirements are needed,
these can be added to the basic
layout. The first phase can be ready
by early 2016 and the next phases will
be planned depending on demand.
The total capacity has increased
over the last five years by 110,000m³.
Surrounded on three sides by
water, the facility has a dedicated
dock for barges and has ample space
for the simultaneous handling of up
to nine vessels. Direct transshipments
are offered as an important part of
the service next to lay by berths.
Single rail car loading is increasing
in importance, and the shunting of
rail cars to and from the terminal has
been made more flexible in order to
increase the handling capacity.
The level of tank truck/container
and flexi bag loading varies from day
to day. The company has the ability to
increase capacity to cater for changing
demand, as well as creating a second
entrance with a logistics area.
Noord Natie Terminals focuses mainly
on bulk storage but additional activities
such as blending, drumming, packaging,
storage of packed liquids and storage of
tank containers are an important part of
the total package of services offered.
4 September/October 2014 • TANK STORAGE
PTT Tank Terminals to invest in new capacity and increased shipments
Noord Natie Terminals has plans for expansion
Thailand-based terminal operator
PTT Tank Terminals is to spend
1.28 million baht (€2.96 million) on
increasing capacity and handling
shipments of liquid petroleum gas
(LPG) up to 1 million tonnes a year.
PTT currently has only one LPG
terminal on Thailand’s eastern
seaboard, though it reportedly
has five projects currently under
development – which will double
its capacity to 120,000 tonnes a
year – due for completion in 2015.
The company’s revenues
reached 230 million baht in
2013. Reports say it took in
165 million baht in the first half
of this year, beating initial
estimates of 130 million.
Noord Natie Terminals is able to expand its capacity with an additional 90,000 m3
Summit Midstream subsidiaries reach North Dakota crude pipeline agreementsEpping Transco, a newly-formed
subsidiary of Summit Midstream Partners,
has reached an agreement with North
Dakota Pipeline Company, an affiliate
of Enbridge Energy Partners, on a new
crude oil interconnect agreement.
The company will interconnect
with and deliver crude oil gathered
on fellow subsidiary Meadowlark’s
Polar and Divide systems into
Enbridge’s North Dakota System
(the ‘Little Muddy Interconnect’).
The Little Muddy Interconnect will
provide customers on the Polar and
Divide systems with increased optionality
in accessing downstream markets
with up to 55,000 bpd of incremental
pipeline throughput capacity.
In connection with the Little Muddy
Interconnect and the Basin Transload
interconnect announced in June 2014,
Meadowlark will expand its Epping crude
oil storage facility and Divide crude oil
storage facility, to offer additional crude
oil storage services to its customers.
Epping Storage will receive crude oil
from the Polar and Divide systems and
will also include a truck unloading rack.
Divide Storage will receive crude oil from
the Divide System and will also include a
multi-bay truck unloading rack. Epping
Storage and Divide Storage will each
have 75,000 barrels of crude oil storage
capacity, initially, and both facilities
will have the ability to accommodate
additional crude oil storage tanks
for future potential expansions.
Both facilities are expected to be
in service in the third quarter of 2015.
Customers of Epping Storage will
have the option to access the COLT
Hub rail terminal or Enbridge’s North
Dakota Pipeline System. Customers
of Divide Storage will have the option
to access the COLT Hub rail terminal,
Basin Transload’s Columbus rail
terminal, or Enbridge’s North Dakota
System (through Epping Storage).
terminal news
TANK STORAGE • September/October 2014 5
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Tank cleaning packs comprising:-• Hydraulic PowerPack• Hydralic sludge dozer• Hydraulic sludge pumps
Crude oil sludge processing equipment
Contract Service, Equipment sales / Hire For further information contact:- Tank Farm Services Ltd, Alpha House, Belgrave Road, Bulwell, Nottingham, NG6 8HN+44 115 9761123 [email protected] tankfarmservices.com
terminal news
6 January/February 2013 • TANK STORAGE
Port of Rotterdam reports 0.6% throughput rise in H1 2014The Port of Rotterdam has
reported steady results in
the first half of the year. Total
throughput increased by
0.6% compared to the first
half of 2013. The throughput
of crude oil increased by
3.3% while that of mineral
oil products decreased by
13.5%. The throughput of
coal grew by 9.5%, while
ore throughput stayed
virtually the same. Container
throughput, measured in
tonnes, increased by 2.7% or
1.9% when measured in TEUs.
Throughput saw a small
decrease of 0.2% in the first
quarter, but was slightly
positive in the second quarter,
causing throughput in the first
half of the year to increase
by 0.6%. A further recovery
of the European economy
is expected for the second
half of the year, so that the
port is on track in terms of
achieving approximately
1% growth for all of 2014.
In the category of liquid
bulk, the throughput of crude
oil has increased by 3.3%.
The margins, and therefore
the utilisation rates of the
refineries, are still low due to
the persistent low demand for
refinery products in Europe and
the increasing competition
from refineries outside Europe,
in part due to the availability
of cheap shale gas in the US.
During the same period
last year throughput was even
lower, however, because
various refineries supplied from
Rotterdam at the time were
partially decommissioned
due to maintenance.
The throughput of mineral
oil products declined by 13.5%.
The decline primarily concerns
the outgoing throughput of
products such as heating oil,
naphtha and petrol. Other
liquid bulk, which primarily
consists of raw materials
for the chemical industry,
declined by 11%. Both the
chemical industry and the
refining sector are in a difficult
position: energy and raw
materials are cheaper
elsewhere in the world.
The throughput of LNG
increased primarily
due to the increase in
the re-export of LNG
that is first discharged
in Rotterdam.
The throughput of
iron ore and scrap is
stable: the European
steel sector has not
yet fully recovered
and is running at 80%
capacity. The supply
of coal increased
by 9.5% due to the
consolidation of import
flows by industrial users
in the hinterland. By
contrast, the demand
for thermal coal
remained limited due
to the extremely mild
winter. In terms of dry
bulk goods, agricultural
bulk is the largest riser in
relative terms at 37.3%.
Considerably more
corn was imported from
Ukraine via Rotterdam,
as well as soya from
South America, among
other products. At
the same time, there
was an increase in
the export of wheat.
The other dry bulk
goods, which among
other things consist of
construction materials,
raw materials for industry and
biomass, increased by 11.9%.
Container throughput
increased by 2.7% in weight or
1.9% in terms of TEUs (standard
measure for containers). This
growth especially persisted
from March onwards, with
an average monthly growth
of 4.5% in comparison to the
same period in 2013. Deep
sea cargo increased by 3.2%
(in tonnes and TEUs) due to
an increase in volumes along
the east-west routes, including
Asia to Rotterdam as well as
North America to Rotterdam,
and in the supply of containers
from South America. The
feeder volume lagged the
feeder volume in the first half
of 2013 (-3.8% in tonnes, -4.7%
TEUs) because a number
of cargo packages were
relocated to Hamburg at the
end of June 2013. However,
the feeder volume once again
increased positively from the
beginning of this year, not
only from and to countries
surrounding the Baltic Sea,
but also from and to the UK as
well. The throughput of short
sea containers grew by 6.1%
in tonnes and 2.6% in TEUs. The
growth primarily represents the
transport between Rotterdam
and the Baltic Sea states and
Russia, and transport between
Rotterdam and the UK and
Ireland. There was an increase
in the throughput of other
general goods by 28.5% due to
the increase in the demand for
steel products and an increase
in project cargo, particularly
for the offshore industry.
The number of ocean-
going vessels that visited the
port in the first half of this
year declined by 1.5% to
14,417. This is primarily due
to the increase in scale of
the container sector.
Crude oil throughput has increased by 3.3% at the port, even in the face of low demand for refinery products in Europe
terminal news
TANK STORAGE • September/October 2014 7
LBC Antwerp adds extra storage to meet ECA sulphur oxide regulationsLBC Tank Terminals’ Antwerp terminal has
added extra storage capacity allowing bunker
companies to meet new sulphur oxide limitations
set to be introduced on 1 January 2015.
An additional 35,000m3 capacity for
storage of distillates and heavy fuel oil
will be provided at the terminal.
Emission Control Areas (ECAs) are sea areas in which
stricter controls have been established to minimise
airborne emissions (SOx, NOx, ODS, VOC) from ships
as defined by Annex VI of the 1997 MARPOL Protocol,
which originally came into effect in May 2005, and which
are set to implement new regulations as a part of a
phased approach over the coming years, with the next
phase due for implementation at the beginning of 2015.
The new capacity comprises of six mild steel
tanks ranging in size between 5,000 and 6,000m3.
Significantly, this ISO 9001:2008, ISO 14001:2004 and
CDI-T accredited terminal will leverage the site’s existing
comprehensive infrastructure, which caters for the
transportation of products by water, road and rail.
All the tanks benefit from dedicated product
lines connected to a 568m quay that is capable
of serving two sea-going vessels and two barges
simultaneously, on a 24/7 basis. With an average
occupancy below 20%, the barge jetty allocated to
bunkers is placed to allow effective bunker operations
with the added benefit of optional blending and/
or product treatments, should these be required. The
terminal also benefits from two site-based surveying
companies and an in-house customs service.
Equally, LBC Antwerp is permitted to receive
slops and wastewaters to maximise barge
availabilities and reduce cost of operations.
Buckeye Partners to sell interests in Lodi Gas StorageBuckeye Partners has signed a purchase and sale
agreement to sell all of the outstanding limited
liability company interests in Lodi Gas Storage
to Brookfield Infrastructure and its institutional
partners for $105 million (€78.3 million).
Lodi owns a natural gas storage facility in northern
California, US. The transaction is expected to close in the
fourth quarter of 2014 or the first quarter of 2015, subject
to approval by the California Public Utilities Commission
and customary and other closing conditions.
Deutsche Bank Securities acted as the
exclusive financial advisor to Buckeye in
connection with the transaction.
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terminal news
8 September/October 2014 • TANK STORAGE
• Over 30 years experience• Largest NDT Company in North West• ISO9001 & BINDT Accredited• Positive Material Identification• Industrial Radiography• Ultrasonic Testing • Long Range Ultrasonics• Phased Array• Magnetic Particle Inspection• Visual Inspection• Dye Penetrant Inspection • Hydrotesting • Welder Qualifications• Weld Procedures • Hardness Testing• Ferrite Testing • Marine Surveys• Videoscope• Tank Inspection & Cleaning• Pipeline Integrity Inspection to API570• Tube & Heat Exchanger Inspection
Independent NDT Specialists
Nuclear Marine
Contcact Inspection Consultants - Email: [email protected]
+44 (0) 151 356 5666 or
+44 (0) 151 357 2212
Pharmaceutical Energy Petrochemical
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Tube & Heat Exchanger Inspection
Based in Ellesmere Port, Cheshire, in the North West of England, we provide non destructive testing (NDT) services across the UK. As an independent NDT Company we provide the full range of NDT Services including PMI, Digital Radiography and MPI as well as Specialist Services like Tank Inspection and Weld Procedures and Qualifications.
All our NDT technicians are externally qualified to both PCN and ASNT and carry SCATS Safety Passports. Our technicians are fully equipped with the latest NDT Technology to carry out testing at our clients’ premises / sites, providing computerised NDT reports at the time of test.
Our specialised Test House Facility includes 4 purpose built Radiographic Bays capable of taking spools up to 8 metres in length, and lifting facilities of up to 3 tonne. We provide a collection and delivery service using our Flat Bed Truck if required to remove spools for testing from Clients Workshops / Sites. Our test house is running 24 hours to ensure a speedy turnaround.
Storage Tank Inspection & Cleaning
NDT Specialists
@InConUK
“InCon have worked for IIS on the Runcorn TPS project since June 2010, they have always shown a first class professional attitude to both quality and safety.
Their management have always endeavoured in assisting us in maintaining our extremely demanding programme.
The men working on site have always worked well and shown a high commitment to HSE. We would not hesitate using InCon on future contracts.”
- Graham Mountfield, QA Manager, Interserve Industrial Services Ltd
Our clients say....
About InCon
Head Office: Rosscliffe Road, Ellesmere Port, CH65 3BS Phone:0151 356 5666 or 0151 357 2212 (24hrs) Fax: 0151 357 4181
terminal news
TANK STORAGE • September/October 2014 9
• Over 30 years experience• Largest NDT Company in North West• ISO9001 & BINDT Accredited• Positive Material Identification• Industrial Radiography• Ultrasonic Testing • Long Range Ultrasonics• Phased Array• Magnetic Particle Inspection• Visual Inspection• Dye Penetrant Inspection • Hydrotesting • Welder Qualifications• Weld Procedures • Hardness Testing• Ferrite Testing • Marine Surveys• Videoscope• Tank Inspection & Cleaning• Pipeline Integrity Inspection to API570• Tube & Heat Exchanger Inspection
Independent NDT Specialists
Nuclear Marine
Contcact Inspection Consultants - Email: [email protected]
+44 (0) 151 356 5666 or
+44 (0) 151 357 2212
Pharmaceutical Energy Petrochemical
InConInspectionConsultants
ww
w.I
nC
on.c
o.u
kWeld Procedures & Qualifications
Tube & Heat Exchanger Inspection
Based in Ellesmere Port, Cheshire, in the North West of England, we provide non destructive testing (NDT) services across the UK. As an independent NDT Company we provide the full range of NDT Services including PMI, Digital Radiography and MPI as well as Specialist Services like Tank Inspection and Weld Procedures and Qualifications.
All our NDT technicians are externally qualified to both PCN and ASNT and carry SCATS Safety Passports. Our technicians are fully equipped with the latest NDT Technology to carry out testing at our clients’ premises / sites, providing computerised NDT reports at the time of test.
Our specialised Test House Facility includes 4 purpose built Radiographic Bays capable of taking spools up to 8 metres in length, and lifting facilities of up to 3 tonne. We provide a collection and delivery service using our Flat Bed Truck if required to remove spools for testing from Clients Workshops / Sites. Our test house is running 24 hours to ensure a speedy turnaround.
Storage Tank Inspection & Cleaning
NDT Specialists
@InConUK
“InCon have worked for IIS on the Runcorn TPS project since June 2010, they have always shown a first class professional attitude to both quality and safety.
Their management have always endeavoured in assisting us in maintaining our extremely demanding programme.
The men working on site have always worked well and shown a high commitment to HSE. We would not hesitate using InCon on future contracts.”
- Graham Mountfield, QA Manager, Interserve Industrial Services Ltd
Our clients say....
About InCon
Head Office: Rosscliffe Road, Ellesmere Port, CH65 3BS Phone:0151 356 5666 or 0151 357 2212 (24hrs) Fax: 0151 357 4181
terminal news
10 September/October 2014 • TANK STORAGE
Manila Harbour bulk facility facing delays amid oil depot negotiationsConstruction work on a bulk handling facility at the
Manila South Harbour in the Philippines is facing
delays due to oil companies reportedly refusing
to move out of the Pandacan oil depot.
Petron, Pilipinas Shell and Chevron Philippines operate
storage tanks in the depot, which serves 70% of the
Philippines’ shipping industry’s fuel requirements and 75%
of the country’s aviation fuel needs as well as supplying
1,800 fuel stations in Metro Manila and other provinces.
Manila City government has ordered the
Pandacan depot to be shut down by 2016 amid
security and environmental concerns. The site has
been reclassified as a commercial zone.
While Petron has reportedly agreed to move its
operations elsewhere by the end of 2015, the other
two companies are believed to have stated that they
will continue to operate at the Pandacan depot.
It is understood that lease rates are currently
being negotiated between the companies and
the state-run Philippine Ports Authority (PPA).
The PPA is quoted as saying it would reclaim 100
hectares within the port zone delineation (PZD) of the Port
of Manila for the construction of a bulk terminal facility,
which will reportedly cost P22 billion (€378.3 million).
Vitol JV acquires Total Swiss storage and distribution assetsVaro Energy, a joint venture between Vitol and Carlyle
Group, has acquired storage assets and Total’s
Swiss heating oil and diesel business units.
The acquisition is in line with the JV’s plans to become a
major midstream energy company covering northwest Europe by
extending its activities to deliver products directly to Swiss customers.
The purchased assets include tank storage facilities in Eclépens,
near Lausanne, and Total’s entire end customer distribution and
sales network for domestic heating oil and diesel in Switzerland.
These assets complement Varo Energy’s current network of
refining, storage and distribution facilities in northwestern Europe,
which include its wholly owned refinery in nearby Cressier,
Neuchâtel. The acquisition is scheduled for completion later this
year. Financial details of the transaction were not disclosed.
‘Adding business units which will allow us to distribute
our products directly to the end consumer is an important
milestone for Varo Energy’s growth and development.
We now have the capability of serving customers with
the same quality products coming straight from our
refineries,’ says Andreas Flütsch, MD of Varo Energy.
In addition to the Cressier refinery, Varo Energy’s assets also
include a 45% share of the Bayernoil refinery in Germany, all
Petrotank storage facilities throughout Germany, additional
storage facilities in Switzerland, and further downstream assets
in Germany. The business serves clients in Northern Germany,
Bavaria and along the Rhine, as well as throughout Switzerland.
terminal news
TANK STORAGE • September/October 2014 11
Greenergy completes phase one of Petroplus refinery conversionGreenergy, the UK’s leading
supplier of road fuel, has
completed the first significant
milestone in the regeneration
of the former Petroplus
refinery on Teesside, UK.
The top tier COMAH facility,
now called Greenergy North
Tees, has been upgraded to
include petrol storage as well
as the associated safety and
environmental equipment
such as vapour recovery units.
New pipeline links
have been created to an
adjacent terminal where
Greenergy stores and
distributes petrol and diesel.
By linking these two
facilities the company creates
a flexible and integrated
supply system for petrol and
diesel in the North East of
the UK. The existing, modern
petrol blending facilities at
the adjacent terminal allow
Greenergy to make blend
margins on the petrol it supplies
from the area, while North
Tees, with its deep water jetty,
can receive low cost imported
diesel on large ships. By linking
these facilities together it is
able to extend the cost and
operating efficiencies of
each site to both locations.
A new petrol rail loading
facility has also been installed
so that petrol can be
transported from the region
by train to other UK locations
for the first time. The first train
loaded at Greenergy North
Tees on 11 August. The rail
loading facility can load 2
million litres of fuel onto a
train in 12 hours – enough
fuel to fill 52 road tankers.
Greenergy has re-
introduced biodiesel blending
and has created segregated
storage and distribution for
ultra low sulphur gasoil, to
give greater operational
flexibility and improved loading
speeds for customers.
IT has been upgraded
to include a new safety and
control system protecting
against tank overfills. IT
controls for the rail and
road loading facility have
also been modernised.
The former refinery was
closed by previous owner
Petroplus in 2010 and used as a
diesel terminal. It was acquired
by Greenergy from Petroplus’
administrators in July 2012 and
re-opened as Greenergy North
Tees in November that year.
Andrew Owens, Greenergy
CEO, says: ‘With the number
of UK refineries falling from 19
in 1975 to just seven today, the
UK relies on import terminals
for an increasing proportion
of its fuel. The regeneration of
the North Tees facility ensures
greater fuel resilience in the
North East and beyond.
This is a major site with the
potential to provide back-
up supply to other locations
such as Scotland if required.’
European and UK refiners
are under increasing pressure
due to shifting demand from
petrol to diesel and the closure
of traditional export markets
in the US and Asia. Fracking
is impacting global trade
flows by turning the US from
an importer to an exporter
of oil, while Asia is benefiting
from a new breed of super-
sized modern refineries.
The regeneration of North
Tees follows investments by
Greenergy in storage and
distribution facilities at Thames
Oilport (acquired in 2012, joint
venture with Vopak and Shell),
Cardiff (2010), Teesside (2009),
Plymouth (2008) and West
Thurrock, Thames (2008).
Greenergy North Tees now features a petrol rail loading facility
For further information please contact PDE at: Enkalon Business Centre, 25 Randalstown Road, Antrim BT41 4LJ, UK T: +44 (0)28 9448 3000 F: +44 (0)28 9448 3010E: [email protected]: www.pde.co.uk
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TANK STORAGE • September/October 2014 13
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14 September/October 2014 • TANK STORAGE
terminal news
US chemical agency reaches conclusions on West Virginia chemical spillInvestigators looking into the West Virginia MCHM spill that occurred in January this year have concluded that the lack of a rigorous inspection programme at Freedom Industries, the owner of the storage site, is at least partly to blame for the leak.
The US Chemical Safety Board (CSB), an independent federal agency tasked with investigating serious chemical incidents, reportedly found no record of a formal, industry-approved inspection performed on any of the company’s storage tanks prior to the incident on 9 January which left up to 300,000 people temporarily without water.
Two small corrosion holes in the bottom of a 48,000-gallon tank were concluded to have been responsible for the leak, according to the CSB. The agency also reported that several other tanks on the same site showed similar damage, which may have occurred through water leaking through the tank roof and settling on the tank floor.
Freedom Industries has reached a multimillion dollar out-of-court settlement with attorneys representing those affected by the incident, while the facility itself is in the process of being dismantled.
Enterprise secures long-term contract for ethane-related services on Houston Ship Channel
US storage operator agrees on EPA fine for safety violations
Enterprise Products has executed
an additional long-term contract to
provide ethane storage, transportation,
refrigeration and loading services
from its new ethane export terminal
that is currently under construction
on the Houston Ship Channel.
With this new agreement, Enterprise
now has long-term commitments
for approximately 85% of the
capacity of the ethane terminal.
‘This key addition to our customer base
brings a significant increase in long-term
capacity commitments, further supporting
development of the world’s largest
ethane export terminal,’ says AJ Teague,
COO of Enterprise’s general partner.
‘As a result of this agreement, we have
commenced evaluation of expansion
options at the new ethane terminal. The
seamless integration of the new terminal
with our existing natural gas
liquids complex at Mont Belvieu
and beyond will help ensure
market access for the growing
surplus of domestic ethane
and facilitate continued
development of the nation’s
abundant energy reserves.’
Scheduled for completion
in the third quarter of 2016,
Enterprise’s new ethane export
terminal, to be located at
its Morgan’s Point facility on
the Houston Ship Channel,
will have the capability to
load fully refrigerated ethane
at approximately 10,000
standard barrels per hour. An
18-mile, 24” diameter ethane
pipeline will be constructed
from Mont Belvieu to supply
the export terminal.
Rancho LPG Holdings, the
operator of a butane storage
site in Los Angeles, has agreed
to pay a $260,000 (€193,990)
fine for lapses in safety and
inspections, according
to the US Environmental
Protection Agency (EPA).
The 40-year-old facility
in San Pedro consists of two
liquid petroleum storage tanks
that can hold up to 25 million
gallons of products. Rancho
has reportedly entered into
a consent agreement with
the EPA following citations for
four violations related to risk
management requirements.
According to a report by
the Los Angeles Times, the EPA,
which began its investigation
in April 2010, found that
the company did not have
complete safety information
to evaluate ‘potential
seismic stresses’, and had
not analysed potential water
supply loss for firefighters in
the event of an earthquake.
Rancho LPG also failed
to properly inspect and test
equipment that included
a storage tank and a drain
system used to contain
accidental releases of
butane and propane.
In accordance with the
consent agreement, Rancho
LPG has reportedly corrected
the violations and made
modifications to bring the
site into compliance with
federal environmental laws.
Situated near to schools,
homes and other businesses,
the facility has been a
source of contention in the
area for many years due to
what residents deem to be
‘unsafe’ infrastructure.
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Odfjell sells stake in Vopak’s Ningbo Terminal Odfjell has sold its 12.5% holding
in Vopak Terminal Ningbo, China,
for $3.2 million (€2.3 million).
The terminal in Ningbo was
Odfjell’s first terminal venture in
Asia. Vopak Terminal Ningbo has
been considered a non-strategic
asset and has been held by
Odfjell SE, outside of the terminal
structure in Odfjell Terminals AS.
Novorossiysk port to be divided in Summa/Transneft deal The assets of OJSC Novorossiysk
Commercial Sea Port (NCSP) in
Russia are to be divided following
Summa Group and Transneft’s plans
to close a deal later this year.
It has been reported
that Summa will buy out
Transneft’s shares within the
deal to become the owner
of more than 60% of NCSP.
Transneft will acquire the port’s
oil loading facilities, including
LLC Primork Oil Terminal and the
Novorossiysk oil area of Sheskharis.
Libya regains control of two oil terminals following clashes Libya reportedly took back control of two terminals in July that had been blocked by militants.
The 200,000 bpd Ras Lanuf oil terminal and the 350,000 bpd al-Sidra terminal were both re-opened following an oil crisis in the country that has lasted for months, with the country witnessing clashes between militia groups and the government.
Libyan interim Prime Minister Abdullah al-Thani gave the news during a joint press conference in Ras Lanuf with militant leader Ibrahim Jodhran.
news in brief...Idemitsu set to expand storage in Singapore
Ceiba and Astra announce new agreement
Ghana oil companies call for Buipe depot to be reactivated ‘immediately’
Japan’s third-largest refiner Idemitsu
Kosan, hopes to lease its fuel-
storage tanks in Singapore as it
expands its trading business.
The Tokyo-based refiner intends
on using the storage tanks to blend
and supply petrol to Australia
and neighbouring countries.
Traders and refiners lease or own
facilities in Singapore to import, mix
and trade products including diesel,
jet fuel and ship bunker. The city-
state has about 70 million barrels of
commercial storage capacity, reports
Alex Yap, a Singapore-based analyst
at FGE, an energy consultant.
‘Japan’s demand for petrol is
expected to considerably drop in
coming years,’ Kiyoshi Homma, the
general manager of the integrated
supply and trading department,
says. ‘There will be more oil products
overflowing from the US and
Middle East into Asia, the world’s
stomach for oil, where supplies
can be always absorbed.’
Idemitsu and its partners are currently
developing a $9 billion (€6.8 billion)
refinery project in Vietnam, which is
scheduled to begin operations in 2017.
Ceiba Energy Services, a provider
of services to the energy sector, has
signed a new agreement with Astra
Energy Canada, an international
physical energy trading organisation.
In December 2011 the two
companies entered into three
agreements regarding storage, facilities
and marketing, which allowed for Ceiba
to build or acquire additional storage,
terminaling, processing and blending
facilities in various locations in the
Western Canadian Sedimentary Basin.
The new Astra agreements, finalised
on 9 July ‘simplify Ceiba’s relationship
with Astra, eliminate the administration
required for the previous agreements
and provide greater flexibility for
Ceiba to execute its growth strategy of
developing waste processing facilities’.
The new agreements mean
those former storage, facilities and
marketing agreements have been
terminated, with ‘both parties
released from future obligations’.
Under the new agreements, Astra
remains Ceiba’s exclusive crude oil
marketer for its current and future
treatment and disposal facilities. The
marketing arrangement terminates
next April and will automatically renew
for 90 day periods unless terminated.
Ceiba will continue to operate its
terminal and storage facility at Kinsella
and Astra will continue to market all
oil processed through the facility.
Ceiba and Astra will share operating
income from Kinsella equally.
Oil marketing companies in Ghana’s Northern Region are calling for the Buipe petroleum storage depot to be reactivated immediately following a business downturn.
The depot was temporarily shut down in November 2013 for maintenance. At the time it was serving a large part of the Northern Region and parts of the Brong Ahafo Region. The facility has a capacity of 50 million litres – 37 million of which are dedicated to diesel and 13 million to petroleum.
According to local news reports, there was a daily demand for 800,000 litres of petrol and 700,000 litres of diesel when the depot was in full operation with a maximum of 50 tankers in use on a daily basis.
The shutdown has reportedly been affecting business in the area, with costs increasing for petroleum transport between Tema and the north.
Fred Ayarkwa, MD of the facility, anticipates that Buipe will resume operations later this year.
TANK STORAGE • September/October 2014 15
terminal news
terminal news
16 September/October 2014 • TANK STORAGE
Pioneer Terminal in North Dakota set for oil storage expansionDakota Plains Holdings has approved the expansion of
oil storage at its Pioneer Terminal in New Town, North
Dakota, US. Construction of a third 90,000 barrel storage
tank is set to immediately commence; regulatory permits
and engineering design are complete and Dakota Plains
expects the storage tank to be operational by summer 2015.
The Pioneer Terminal is located in the heart of the
Bakken and Three Forks formations and currently has
sustainable throughput capacity of 45,000 barrels of oil
per day with onsite oil storage of 180,000 barrels. The
addition of a third storage tank, recently announced
Hiland Partners gathering pipeline, and anticipated
expanded rail service will facilitate increasing the
sustainable throughput rate to a unit train per day
– equivalent to 80,000 barrels of oil per day.
Craig M. McKenzie, chairman and CEO of
Dakota Plains, says: ‘Construction of the new
storage tank is estimated to cost $5.5 million (€4.1
million) gross or $2.75 million net to Dakota Plains
for its 50% share; the project is expected to be
funded through cash from operations and debt.
‘Our goal is ultimately to expand the Pioneer Terminal
capacity beyond 80,000 barrels per day commensurate
with oil developments near the Pioneer Terminal,
complemented by the Hiland Partners pipeline that
will be able to gather oil from across the basin.’
Tel: +44 (0)1843 221521 | [email protected] | @TodoEngineering www.todo.se
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Gunvor Group to begin petrol exports from Ust-Luga terminal
Global commodity trader Gunvor
Group is to begin exporting petrol
this month from its oil terminal
in the port of Ust-Luga, Russia.
Around 80,000 tonnes in total
will initially be exported from
the 420,000 bpd Kirishi refinery
operated by Surgutneftegaz.
It is not clear why the refinery
has switched its export operations
to the port of Ust-Luga – they
previously went through the port
of Riga – and Surgutneftegaz
has declined to comment.
The volume of oil product
exports at the terminal for
the period January to June
2014 increased to 11.5 million
tonnes, 1.5 times more than
for the same period in 2013.
Oil product exports at
the terminal will reach a
total of 21.4 million tonnes
by the end of the year.
Capacity at the port of Ust-Luga will reach 180 million tonnes by 2018
TANK STORAGE • September/October 2014 17
terminal news
MultiCorp and partners secure 1m-barrel jet fuel storage unit
Kinder Morgan merges oil, gas and pipeline assets in $70b deal
MultiCorp International, in a partnership with Ireland-based
New World Fuels and UK-based Principle Risk Solutions,
has secured a petroleum storage unit capable of holding
1,000,000 barrels of jet fuel in a major shipping port wherein
the company now has full control of the storage and
sales of jet fuel and crude products with full security.
‘Through the hard work with our business associates
at New World Fuels and Principle Risk Solutions, we have
secured a petroleum tank storage facility of 1 million barrel
capacity that will be used by the company to control their
sales for both current and future contracts for jet fuel orders
from major companies throughout the world. Through PRS
and NWF we’re able to completely allow safe transfer of
the product at the loading port thereby giving our current
clients and potential buyers comfort in knowing all safety
measures have been taken to ensure their transactions are
smooth and secure,’ says Paul Lisenby, CEO of MultiCorp.
Jason Bailyes of Principal Risk Solutions, states, ‘The
combination of our partnership ensures we can facilitate
transactions in a secure environment. Our fundamental
ability to provide accurate and timely situational security
awareness underpins any current or future trade. We are
delighted to be working closely with our partners and
being able to utilise our experience and proven skill set
within this dynamic and exciting marketplace.’
Kinder Morgan is bringing all of its publicly traded units, including
oil, gas and pipeline assets, under one roof in a $70 billion (€52.6
billion) deal that reshapes the financial structure of the oil and gas
pipeline company.
The deal will create a company worth $140 billion including
debt that combines Kinder Morgan Energy Partners, Kinder
Morgan Inc. with Kinder Morgan Management and El Paso
Pipeline Partners.
Kinder Morgan is purchasing the outstanding shares of the
other three companies. Holders of KMP, KMR and EPB shares will
receive shares of Kinder Morgan Inc. as well as possibly cash in the
deal, which will consolidate the companies under KMI.
‘This combined entity will be the largest energy infrastructure
company in North America and the third largest energy company
overall,’ said CEO Richard Kinder in a statement.
The company expects the deal to close by the end of
the year.
KMI will consolidate the companies under a single
C-corporation, instead of the master limited partnership structure
that Kinder Morgan had previously used extensively.
MLPs grow through acquisition and pay no taxes because
nearly all profits are paid out to investors in the form of distributions.
Barclays and Citi were KMI’s financial advisers while Barclays
will provide financing. KMI’s legal advisers were Weil Gotshal &
Manges and Bracewell & Giuliani.
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18 September/October 2014 • TANK STORAGE
Edmonton Rail Terminal expansion project moves aheadKinder Morgan Energy
Partners has announced
that its 50-50 joint venture
with Imperial Oil has entered
into additional firm take or
pay agreements with strong,
credit-worthy oil company
majors sufficient to allow a
planned expansion project
to move forward by adding
incremental capacity of
110,000 bpd at the Edmonton
Rail Terminal, Canada.
The terminal is now almost
a year into construction. It
will increase its capacity at
start-up in the first quarter of
2015 to over 210,000 bpd and
potentially up to 250,000 bpd.
The terminal will be connected
via pipeline to Kinder Morgan’s
adjacent Edmonton storage
terminal and will be capable
of sourcing all crude streams
handled by Kinder Morgan
for delivery by rail to North
American markets and
refineries. The rail terminal
is being constructed and
will be operated by Kinder
Morgan, and will connect to
both Canadian National and
Canadian Pacific mainlines.
Including the addition of
the expanded capacity, KMP’s
investment in the project
now totals approximately
$232 million (€175.8 million).
‘The continued interest
in this facility, and additional
volume being contracted
for with this announcement,
further demonstrates how
important it is for our customers
to secure crude oil take away
capacity using a variety
of transportation options,
including both pipeline and
railway capacity to ensure
crude oil reaches market,’
says Kinder Morgan Terminals
president John Schlosser.
The rail facility is being
built with state-of-the-
art technology and will
incorporate extensive safety
and environmental protection
features, and will be staffed
with trained personnel
around the clock.
Japan to treat Middle East crude storage as reserveSome of the crude oil stored by Saudi
Arabia and the UAE in Japan is to be
treated as ‘quasi-strategic reserves’ by the
country as a way to help to help Tokyo
meet its strategic reserve obligations,
according to a Reuters report.
Japan lends around 10.7 million
barrels of crude storage capacity to
the countries, though this is set to grow
to an estimated 12.6 million barrels
next fiscal year and could grow higher
following that, as part of a deal to
strengthen the Asian country’s ties to two
of the world’s major crude suppliers.
Reuters quotes a trade ministry
panel as saying it would ‘seek to add
half of the crude tank capacity used by
the producers to the national strategic
reserves to meet a storage target of 90
days’ worth of oil under International
Energy Agency (IEA) obligations’.
Japan will also delay its plans to boost
liquid petroleum gas (LPG) stockpiles to
1.5 million tonnes until sometime during
the financial year beginning April 2017.
This is to account for the expected
lower cost of US imports next year.
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terminal news
Murex and Cetane Energy to double operational capacity at New Mexico facilityMurex and Cetane Energy
have agreed to capital
improvements at their Cetane
crude oil transloading terminal
in Carlsbad, New Mexico, that
will double the operational
capacity of the facility.
The existing unit train
crude oil transloading
terminal will begin
implementing improvements
immediately that will
allow for the loading of
40,000 barrels of crude oil
per day by July 2015.
Initially, Murex and
Cetane installed 40,000
barrels of crude oil storage,
12 tank truck offloading
stations and over 18,000 feet
of rail track to accommodate
unit train loading at the
facility. The facility shipped
its first unit train of crude
oil in December last year.
The capital improvements
project will include additional
on-site storage, further
rail track enhancements,
and increased capacity
for truck offloading and
rail car loading.
CB&I wins multimillion-dollar Oiltanking contract CB&I has been awarded a
contract valued in excess
of $49 million (€36.6 million)
by Oiltanking Beaumont.
The project scope
includes the engineering,
procurement, fabrication and
construction of 12 internal
floating-roof crude oil storage
tanks at Oiltanking’s terminal
in Beaumont, Texas, US.
‘We currently are finishing
crude oil storage tanks
for Oiltanking at another
project site in Houston,’ says
Luke Scorsone, president of
CB&I’s Fabrication Services
operating group.
Zenith Energy to invest millions in terminal assetsZenith Energy, an
international liquids and
bulk terminaling company,
has announced that an
affiliate of Warburg Pincus,
a global private equity
firm focused on growth
investing, has agreed
to lead a line-of-equity
investment of up to $600
million (€454.6 million) in the
company. Warburg Pincus is
joined by minority investors
that include members of
the management team
and other individuals.
Zenith is pursuing
opportunities to buy, build
and operate terminals
primarily in Latin America,
Europe and Africa, which
include the storage
and logistics for crude
oil, refined products,
and petrochemicals.
The company also will
identify opportunities in
logistics and distribution
assets that support terminals,
such as pipelines, truck
racks and barges.
In June 2014, Zenith and
Grupo Coremar announced
the award of a contract
for the construction on the
first phase of a new, multi-
product liquids terminal in
Palermo, Colombia.
TANK STORAGE • September/October 2014 19
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Global Partners to develop crude terminal at Port Arthur, TexasGlobal Partners and Kansas City Southern (KCS) have
announced plans to develop a unit train terminal
in Port Arthur, Texas, along the US Gulf Coast.
The waterborne terminal, which will be constructed on a
200-acre parcel leased by Global from KCS, will serve initially
as a destination for heavy crude from Western Canada
utilising 340,000 barrels of initial storage capacity. Upon
commencement of unit train service, the terminal is expected
to have an initial capacity of up to two unit trains per day.
‘The addition of a crude destination terminal on the US
Gulf Coast will broaden and strengthen our logistics network,’
says Global’s president and CEO Eric Slifka. ‘Situated within
a 100-mile radius of nearly 5 million barrels of Gulf Coast
refining capacity and an expansive pipeline network, Port
Arthur is a prime destination for crude and refined products.
The terminal complements our assets on the East and
West Coasts, expanding optionality for our customers.’
‘The Port Arthur terminal represents a significant
opportunity to capitalise on strong demand for the
movement of Western Canadian crude initially to one
of the world’s premier refining centres in the US Gulf
Coast,’ adds KCS president and CEO David Starling.
Construction of the terminal is contingent upon Global’s
receipt of all necessary permits. The cost of the project has not
been disclosed, though Global will cover the investment.
terminal news
20 September/October 2014 • TANK STORAGE
CEFC joins RPG subsidiary for Rizhao oil storage operations in China
Iran to inaugurate 10 crude storage facilities in next year
ADPO NV to develop new storage terminal with Solventis
Petrochemical and fuel oil trader
CEFC International has joined with a
subsidiary of Rizhao Port Group (RPG)
to build and operate oil storage
facilities in Rizhao port, China.
The joint venture between CEFC’s
wholly owned subsidiary, Hong Kong
CEFC Petrochemical and Energy and
Rizhao Port Oil Terminal, will have
an initial registered capital of 350
million Yuan (€42.4 million), with CEFC
Hong Kong subscribing for a 49%
stake for 171.5 million Yuan in cash.
Rizhao Port Oil Terminal will
satisfy the consideration for its
51% stake by transferring to the JV
company the land on which the
facilities will be constructed, and
contribute the balance amount
in cash if the value of the land
is less than 178.5 million Yuan.
The project will cost some
700 million Yuan, including land
costs and construction and
development of the oil storage
facilities. The remaining 350 million
Yuan of the project cost will be
funded by bank borrowings.
Iran’s Petroleum Engineering and Development Co.
(PEDEC) has reportedly said the country plans to
inaugurate 10 crude oil storage facilities by early in
the next Iranian year, beginning on 21 March 2015.
A total of 7 million barrels of crude oil
will be stored in the concrete tanks, the first
to be built by the National Iranian Oil Co.
(NIOC), for shipment or processing.
Tanks are to be built in the southern
cities of Omidiyeh and Gurreh in Khuzestan
and Bushehr Provinces, with the Gurreh
project reported to be 85% complete.
ADPO NV and Solventis have entered into
a long term agreement to develop a new
12-hectare tank storage terminal on the left
bank of the River Scheldt to be called ADPO
Liefkenshoek Logistics Hub, or ADPO LLH.
Phase 1 of construction is already well
underway. The logistic configuration for the
exclusive use of Solventis will be accessible by
road, rail and water and will house the following:
• 27,000m3 mild steel and 10,000m3
stainless steel tank capacity
• 10,000m3 chemical storage warehouse
• Two fully automatic drum- and IBC filling stations
• 3ha ADR iso container parking area
• A multi-purpose stainless steel blending plant
Phase 2 allows for development of a further
60,000m3 of free tank storage capacity. Completion
of Phase 1 is scheduled for May 2015.
ADPO NV has for many years been a principal
provider of logistic services to Solventis at its Kallo
(HQ) terminal in the Port of Antwerp and this
Agreement will provide Solventis with additional
storage capacity as well as enabling the company
to concentrate its drum and IBC filling operations
and blending activities on one site.
Macquarie acquires second 50% stake in IMTT to assume controlMacquarie Infrastructure
is to assume full control
of International-Matex
Tank Terminals (IMTT) after
acquiring the remaining
50% stake for $910 million
(€668.7 million) in cash and
$115 million in stock.
The company bought the
first 50% stake in May 2006.
Bulk liquid storage terminal
provider IMTT has a capacity
of around 42 million barrels
of storage across 10 marine
terminals in the US, with EBITDA
increasing from $67 million in
2005 to $279.6 million for the 12
months ending 31 March 2014.
IMTT contributed $39.7
million to Macquarie’s EBITDA
during Q1 of the fiscal year
2014, ending 31 March.
Macquarie also has a
45% stake in Singapore-
based Helios Terminal,
bought from Oiltanking for
an undisclosed amount last
year, and acquired Australia/
New Zealand-based ANZ
Terminals for $492 million at
the end of last month as it
consolidates its operations.
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Located between Marseille
and Barcelona, Port-la-
Nouvelle is France’s third
largest commercial port on
the Mediterranean. Owned
by the Languedoc-Roussillon
regional council, the port is
managed by the Chamber
of Commerce of Narbonne.
The annual traffic is 2 million
tonnes/year and consists
of liquids, dry bulk and
breakbulk commodities.
In 2011, the Chairman of
the Regional Council, Christian
Bourquin, launched the project
‘Deep Sea Port’ with a budget
ranging from €210-€325 million.
The future infrastructure will
include a new terminal (20
to 25 hectares) dedicated to
liquid cargoes and linked to 4
berths accessible to ocean-
going-vessels of 225m long
x 36m beam x 14.5m draft.
These dimensions,
corresponding to ships of
about 80,000 dwt, will enable
Port-La Nouvelle to trade with
North and South American
markets as well as with the
Asian market. In addition,
80 hectares will be fitted
to welcome industrial sites
with direct rail connections.
Other lands (> 600 hectares)
will be available in a 50km
radius around the port.
The building, which
also include a new dry bulk
terminal and 2,000m of quay
will start in 2016/2017 with a
delivery of the first facilities
expected by 2020. This new
deep sea port will offer
shippers and receivers new
logistics opportunities in the
south of France and Europe.
Rail delivery will be particularly
easy to reach northern Europe
Accordingly, the Languedoc-
Roussillon Region intends
to play a major role in the
Mediterranean market to meet
their ever-growing activities.
The port management is
looking for industrial and
logistics projects to secure
the investment and prepare
the Languedoc-Roussillon
region, whose population is
expected to increase by over
20 by 2040, for the future.
For more information: This article was written by Laurent Mouillie, commercial director, Port La Nouvelle, + 33 4 68 48 94 84 – [email protected]
New French terminal enables
international trade
terminal news
TANK STORAGE • September/October 2014 21
technical news
22 September/October 2014 • TANK STORAGE
RMF builds storage tanks at Dakota refineryRocky Mountain Fabrication
(RMF) has recently completed the
mechanical installation of 18 field
erected tanks at the Dakota Prairie
Refinery in Dickinson, North Dakota.
The project marks the first refinery
to be built in the US since 1976, and the
first new refinery and second largest
project for RMF. The tanks range in size
from 52 feet in diameter by 40 feet
tall, up to 117 feet in diameter by 40
feet tall, and are built to store crude
oil, diesel fuel, naphtha and water.
RMF’s four core values of
safety, quality, integrity and
innovation lent themselves heavily
to the successful completion
of the project. The company’s
understanding of what makes the
industry work is complemented by
the team’s skills in tank fabrication
and erection for the chemical,
petrochemical, water/wastewater,
mining and other industries.
RMF focuses on both new
construction and maintenance and
can answer the demands of any
size project. RMF is headquartered
in Salt Lake City, with a new office
opening soon in the Houston area.
Storage tanks completed for DNO Ergil, an engineering,
construction and
manufacturing company
for the petrochemical,
oil, gas and chemical
industries, has completed
the manufacturing of
storage tanks and storage
tank equipment for DNO’s
Summail gas project. DNO
is a Norwegian exploration
and production company
focused on the Middle
East and North Africa.
This is the first gas field
developed by DNO in the
Kurdistan region, northern
Iraq. The scope of the
order included supply of an
insulated amine storage tank,
a triethylene glycol (TEG)
storage tank, a portable
storage tank, a reverse
osmosis water tank, an amine
run down tank and a TEG
run down tank equipped
with electrical heaters.
Headquartered in Oslo,
Norway, DNO is a Middle East
and North Africa focused oil
and gas company holding
stakes in oil and gas blocks in
various stages of exploration,
development and production
both onshore and offshore,
in the Kurdistan region of
Iraq, the Republic of Yemen,
the Sultanate of Oman, the
United Arab Emirates, Tunisian
Republic and Somaliland.
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NEW 63,000 SQ. FT. MANUFACTURING FACILITY 500 Northpark Central Dr., Suite 100Houston, TX. 77073
technical news
TANK STORAGE • September/October 2014 23
Benko elevating platform provides safe access to tank trucks and cars Benko Products, a manufacturer
of fall protection equipment for
tank trucks and hopper cars,
says its G-Raff Elevating Platform
provides safe access to tank
trucks, tank cars and hopper cars.
This platform is part of
the ‘Green Access and Fall
Protection’ line and was
specifically designed to provide
operators continuous fall
protection while working on
the tops of these vehicles.
The G-Raff Elevating Platform
is self-supporting and features
a level access platform that
raises and lowers to the exact
height of the vehicle. Other
features include: machine screw
actuation, push-button operation,
and a self-adjusting stairway.
The Green Access and Fall
Protection product line includes
flat ramp, telescoping and self-
levelling stair gangways, truck and
railcar loading racks, stationary
and portable platforms, loading/
vapour arms, spill containment
pans, portable transloading
carts, horizontal lifeline systems,
caged ladders, pipe racks,
custom structural, and more.
All Green platforms are
engineered for operator safety,
compliance with governing
OSHA standards. Benko’s G-Raff Elevating Platform
NuStar Energy Grangemouth terminal is
continuing to expand and has extended
its implementation of MHT Technology’s
tank and inventory management
system, VTW. A number of additional
tanks have been added to the system,
bringing in data from Endress+Hauser
NRF590 Tank Side Monitors linked to
FMR532 High Accuracy Radars and
NMT539 Average Temperature Devices.
In addition to this, extra valves have
been added to the system. ‘One of the
great benefits of VTW is that it is a totally
scalable system and is easy to extend
in line with site requirements,’ explains
MHT product manager Judith Brown.
At the Grangemouth installation,
NuStar is able to remotely control its
valves from VTW, enabling them to open
and close valves from the comfort of
the control room. This not only saves on
manpower but helps improve safety too.
This is the second terminal within
the NuStar Energy group to implement
VTW. Following a competitive tender
process, MHT Technology has been
nominated as the number one supplier
for Tank Gauging solutions in Europe.
Situated on the Firth of Forth estuary,
approximately 25 miles from Edinburgh,
the Grangemouth Terminal primarily
handles diesel, gasoil, kerosene, petrol,
ethanol and various chemicals.
The terminal has capitalised on
the latest in Virtual Server technology
– where the IT systems no longer
rely on a single piece of hardware –
and is leading the way forward for
other NuStar Energy terminals.
MHT worked in close partnership with
NuStar Energy’s UK IT team to implement
the VTW system, which is installed on dual
redundant virtual servers and dual virtual
clients. NuStar’s Grangemouth terminal has
implemented the ultimate fault tolerant
architecture for its VTW system. This means
that if any piece of server or client PC
hardware should fail, the virtualised VTW
system simply swaps over to a different
piece of hardware in a matter of seconds.
The operators using the system
would be able to continue working
as usual and would not suffer from
downtime on the VTW system.
Billy Pullar, terminal manager says:
‘MHT’s VTW tank gauging solution has
replaced an aging system and given
us confidence that we can rely on our
tank gauging software to always be
available to monitor our inventory. In
addition, the Movements Package
enables us to safely plan, monitor and
analyse the safe movement of product
from the jetty into the tank farm, as well
as performing tank to tank transfers.’
Tank gauging software supports site expansion
MHT worked with NuStar Energy’s UK IT team to implement the new VTW system
technical news
24 September/October 2014 • TANK STORAGE
FB Site Services launches inspection division
OPW acquires Liquip
FB Site Services, a civil engineering company
based in the UK, has created Viking Inspection
– a new division focused on providing storage
tank and pipeline inspection services.
Together with FB Site Services’ storage
tank and pipeline cleaning and blasting
solutions, the two companies say they
are now able to provide a full turnkey
service to the bulk storage, petroleum,
chemical and power industries.
Viking Inspection’s services include:
• Tank Floor scanning using the
Silverwing Floormap 3D MFL floor
scanner with distinction between
topside and underside corrosion
and mapping software
• Tank shell inspection using the Silverwing
Scorpion dry probe UT scanner
• Magnetic particle inspection of tank
floor and shell welds and nozzle welds
• Ultrasonic thickness checks on the tank
floor, shell, nozzles and pipework
• Vacuum box inspection
of tank floor welds
• EEMUA 159 tank integrity assessment
of the tank including fitness for further
service and remaining life assessment
• API 653 Assessment of the tank
including fitness for further service
and remaining life assessment
• API 570 Assessment of aboveground
and buried pipelines including
isometric CAD drawing, UT thickness
checks, recording of CML and TML
locations and fitness for further service
and remaining life assessment
• Guided Wave (Teletest Focus) inspection
of aboveground (insulated and non-
insulated) and buried pipelines.
OPW, a provider of fluid handling
solutions and a business unit
within Dover’s ‘fluids’ segment,
has completed the previously
announced acquisition of Liquip
International, headquartered
in New South Wales, Australia.
Dover is a global
manufacturer of equipment
and components, specialty
systems and support services
through four major operating
segments: energy, engineered
systems, fluids, and refrigeration
and food equipment.
Park Derochie implements tank segment Park Derochie, a specialist in all
types of coatings and blasting,
fireproofing, mechanical insulation
and containment, has created
a ‘tank division’, based out of
its Edmonton office, Canada.
Given the ever increasing
activities in storage tank
fabrication and restorations,
Park Derochie believes that a
specialised division with a direct
focus in this market place is
‘long overdue’ and will allow
its ‘existing coatings division to
focus on its core business’.
Patrick Selzler has been
appointed manager of this
new division. Selzler joined
Park Derochie in 2012 and
has successfully executed the
roles of project and operations
manager within the company’s
coatings division.
Low-Cost Biodieseland Ethanol Blend Analyzers
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technical news
TANK STORAGE • September/October 2014 25
Tank Storage Asia 2014 announces Singapore Pavilion Tank Storage Asia has announced
that there will be a specialist area for
Singapore-based companies at this year’s
show, called the Singapore Pavilion. The
leading event for the Asian tank storage
industry takes place on 24-25 September
at the Marina Bay Sands, Singapore.
IE Singapore has officially approved
the International Marketing Activities
Programme (iMAP) grant for Tank Storage
Asia. These grants allow companies based
in Singapore to save up to 50% when
exhibiting at industry leading events.
This news is a major coup for Tank
Storage Asia, because it is recognition
that the show is a key component
within the tank storage industry within
the Asian markets. These grants will also
encourage an even greater mix of
innovative new suppliers from Singapore
to exhibit at the show. These exhibitors will
bring new technologies, concepts and
ideas, strengthening and reinforcing the
show’s position as the most important
and dynamic industry event for the
region. The show will feature over 60
manufacturers and suppliers spanning
the entire tank storage spectrum.
There has already been huge interest
from companies eager to take advantage
of the grant, and exhibit in the Pavilion.
Those that do will reach over 1,000
business professionals from the major oil
companies, oil and chemical terminal
managers, inspection and maintenance
personnel, tank engineers and technicians
who head to the show each year.
Matt Benyon, MD of Tank Storage
Asia, says: ‘It’s fantastic news that we
have received this recognition, not
just for this year’s show, but also to
build for the future. Tank Storage Asia
doubled in size last year and that is the
direction we want to continue in.’
The Tank Storage Asia 2014 exhibition
will run alongside a popular two day
paid-for conference, boasting its strongest
ever conference line up, with over 20
leading authorities in the bulk liquid
storage sector. They will be discussing the
region’s critical issues – everything from
changing trade flows and the shale boom
to the storage market in China and the
growth of the Asian biofuels market.
Tank Storage Asia takes place
from 24-25 September at Marina
Bay Sands, Singapore. To find out
more about attending visit www.
tankstorageasia.com
The two day conference will feature over 20 leading authorities in the bulk liquid storage sector
New ATEX Zone 0 portable LED floodlighting solutionWolf Safety, a manufacturer
of hazardous area portable
and temporary lighting,
has launched a new
floodlighting solution which
provides hazardous area
workers a portable and self-
contained LED temporary
floodlighting solution in areas
where the most extreme
hazards may be present in
flammable concentrations.
The ATEX Zone 0
Flood Bank features the
performance and reliability
of the proven Wolflite
XT Rechargeable Zone
0 Handlamps to deliver
collectively, within a stand,
a flood illumination of up to
2,100 lumens (lms), to a Zone
0 hazardous task area.
The Flood Bank Stand
incorporates the Wolflite
XT Rechargeable Zone 0
hand lamps (XT-75) which
are CE marked to the ATEX
directive and IECEx certified,
for safe use in Zone 0, 1 and
2 potentially explosive gas
atmospheres, where a T4
temperature class permits.
Available in two (XT-602), four
(XT-604) or six (XT-606) hand
lamp bank configurations,
the stands can be placed
on level ground or mounted
on a tripod to elevate, direct
and focus the light to the
desired task working area.
The XT-75 Zone 0 hand
lamps’ bespoke optics
coupled with the LED light
sources deliver a light output,
of over 350 lms each, from
the high intensity spot beam,
switchable to a wide-angle
flood. The battery duration at
high output is six hours and 12
hours in power save mode,
and is monitored with a state
of battery charge indicator.
Made of stainless steel,
each stand incorporates hand
lamp holders with ‘snap-in/
snatch-out’ function for quick
release but secure retention
and allows the bank of hand
lamps to be manually tilted
and locked in position.
The stands only are
also available and can
accommodate all Wolflite
XT hand lamp models
to create different Zone
versions as required. Wolflite Zone 0 Flood Bank
26 September/October 2014 • TANK STORAGE
n 18/08/2014 Oklahoma, US
n 18/08/2014 Illinois, US Campbell Enterprises
n 17/08/2014 Pennsylvania, US Hilcorp Energy
n 30/07/2014 Tripoli, Libya CSX Corp.
Fire crews were called to a fire at an oil storage facility during the night.It is unclear how the blaze started, though firefighters had it under control
‘within half an hour’.No injuries were reported.
Lightning struck an oil storage tank in El Dorado, southern Illinois, causing four more nearby tanks to explode.
No injuries were reported after the incident, which occurred at around 4am.
The blaze was contained to a field after authorities decided to let it burn out on its own.
A storage tank caught fire near a gas well owned by Hilcorp Energy in Jefferson Township, Mercer County.
It is thought the fire was sparked by an ignition pump used to force water, separated from oil, into the tank.
Residents reported hearing ‘explosions’ and seeing plumes of heavy black smoke but local fire crews brought the blaze under control swiftly.
Fighting between rival militias in Tripoli, Libya, resulted in a blaze at an oil depot containing 6 million litres of fuel.
The depot, located around six miles from Tripoli, was reported to have been hit by rockets, sparking a fire across eight storage tanks.
Fire crews were said to have the blaze under control on 6 August, though the site was still at risk.
incident reportA summary of the recent explosions, fires and leaks in the tank storage industry
Sign up now to receive your FREE fortnightly newsletter providing up-to-dateinformation on acquisitions, mergers, new terminals and the latest regulations:
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If you would like your company’s name to feature in this please contact [email protected] (+44 (0)20 8687 4126)
terminal news
TANK STORAGE • September/October 2014 27
28 September/October 2014 • TANK STORAGE
analysis
ARA oil tank storage markets
are very diverse so this article
will only cover the petrol,
middle distillates and fuel
oil storage markets. These
segments are very large and
competitive in the ARA region.
Therefore developments in
these markets are a good
indicator of the status of the
ARA-tank terminals sector.
In the petrol segment, the
Port of Amsterdam plays a
central role. Because Europe
has a structural surplus of petrol
there is a continuous flow
being exported out of Europe
to petrol export markets. Petrol
traders collect the abundant
petrol components, blend
them together into finished
product and ship it to export
markets. These petrol blenders
are mostly located in the
Port of Amsterdam where
these companies rent tanks
to blend and make bulk.
European middle distillate
markets are somewhat the
opposite of the petrol market.
Europe has a structural deficit
of diesel and needs to import
large volumes of diesel. Diesel
is mostly imported from the
US and Russia. Large volumes
are discharged into tank
terminals in ARA and distributed
across Europe from there.
ARA fuel oil markets can
be divided into two main
businesses: (1) the marine
bunker market; and (2)
the Russian/Far East transit
arbitrage business. The ARA
region is one of the busiest
port areas in the world and
has a large marine bunker
market. To supply fuel oil to
ships, tank storage capacity
is needed. Another lucrative
business is the facilitation of the
Russia/Far East fuel oil transit
flow. Russia has a structural
surplus and the Far East has
a structural deficit of fuel oil.
Currently fuel oil is shipped from
the Baltic Sea via Rotterdam
to Singapore. The stop in
Rotterdam is needed because
of draft limitations in the Baltics.
Drivers of change
There are four main themes
that are likely to impact ARA oil
markets in the medium-term:
• Possible European
refinery closures
• The US refinery and
petrochemical renaissance
• Changes in the Russian/
Far East fuel oil flow
• Oil futures forward curves.
Due to global competition,
refinery margins are under
pressure. Especially in
Europe, where oil products
consumption is decreasing,
refineries are relatively old and
there is a strong mismatch
between fuel consumption
and refinery output, margins
are very low or even negative.
Refiners from the US, Russia
and the Middle East are
squeezing out European
competitors that are unable
to compete in global markets.
The recent shale gas and tight
oil revolution in the US, which
is giving US refiners a double
competitive advantage, is
especially considered a global
game changer. As a result
of the fierce competition,
much European refinery
capacity has already been
closed and more closures
are expected. According to
the IEA1, 0.6mb/d of refining
capacity will shut between
now and 2018. These closures
will lower oil product output.
At the same time oil
product consumption in
Europe will also change. Petrol
and fuel oil consumption are
set to decline. This decline in
consumption for these two
oil products will more or less
offset the decline in refinery
output. Therefore the surplus in Eurozone demand – structural surplus of petrol and a deficit of diesel
Consultant PJK International summarises how changes in the global oil markets are impacting profitability for tank terminal operators
ARA tank storage markets: more pain to come?
Header: analysis
ARA tank storage markets: more pain to come?
Consultant PJK International summarises how changes in the global oil markets are impacting profitability for tank terminal operators
ARA oil tank storage markets are very diverse so this article will only cover the petrol, middle distillates and fuel oil storage markets. These segments are very large and competitive in the ARA-region. Therefore developments in these markets are a good indicator of the status of the ARA-tank terminals sector.
In the petrol segment the port of Amsterdam plays a central role. Because Europe has a structural surplus of petrol there is a continuous flow being exported out of Europe to petrol export markets. Petrol traders collect the abundant petrol components, blend them together into finished product and ship it to export markets. These petrol blenders are mostly located in the Port of Amsterdam where these companies rent tanks to blend and make bulk.
European middle distillate markets are somewhat the opposite of the petrol market. Europe has a structural deficit of diesel and needs to import large volumes of diesel. Diesel is mostly imported from the US and Russia. Large volumes are discharged into tank terminals in ARA and distributed across Europe from there.
CAPTION: Eurozone demand – structural surplus of petrol and a deficit of diesel (Source: Eurostat)
-‐5000
-‐4000
-‐3000
-‐2000
-‐1000
0
1000
2000
3000
4000
5000
Apr2002
Nov2002
Jun2003
Jan2004
Aug2004
Mar2005
Oct2005
May2006
Dec2006
Jul2007
Feb2008
Sep2008
Apr2009
Nov2009
Jun2010
Jan2011
Aug2011
Mar2012
Oct2012
May2013
Dec2013
Volume [kton/month]
Euro Area: Demand minus Refinery Output
Gasoline
Gasoil/diesel
Sou
rce
: Euro
stat
TANK STORAGE • September/October 2014 29
analysis
petrol and fuel oil markets will
most likely stay around current
levels. Diesel consumption is
however set to increase in
the medium-term mainly due
to ECA2015 legislation. The
structural deficit will therefore
increase which means more
diesel will need to be imported.
The supply of Russian fuel oil
via Baltic ports into Rotterdam
may be reduced because
of two factors. The first factor
is planned Russian refinery
upgrades. These upgrades
focus on increasing petrol and
middle distillate yields at the
expense of low value fuel oil
yields. The second factor is
the possible increase in fuel
oil export taxes in Russia. This
tax regime change will most
likely lead to closing of small
inefficient Russian refineries.
These refineries produce
relatively high amounts of
fuel oil. However, it remains
uncertain to what extent
Russia’s refineries will upgrade
taking into account recent
political developments in
Ukraine. Also the change in
tax regime is no ‘done deal’.
Apart from supply chain
considerations, the tank
storage market is also very
much dependent on prices
of oil derivatives markets. In
particular the shape of the
forward curve influences
demand for tank storage
capacity: a ‘contango’
stimulates demand whereas
a ‘backwardation’ reduces
demand for tank storage
capacity. In 2011 the market
turned from contango to
backwardation and as a
result trader’s profits are under
pressure and there is less
demand for storage capacity.
For the medium-term
the expectation is that
backwardation or, at most,
a shallow contango will
persist. There are scenarios
that could push the market
back into a deep contango,
although these scenarios are
less likely at the moment.
Tank storage capacity in
the ARA-region has exploded
in recent years. Heavy
investments in new terminals
and expansions of existing
terminals have led to an
increase of 25% in the period
between 2008 and 2013. For
the period to 2016
more expansions
are planned.
Mid-term view
As a result of
negative demand
factors and
overinvestment in
the tank storage
market, storage
rates are under
pressure in more or
less all oil product segments. In
the baseline scenario demand
will further deteriorate and
keep storage rates, occupancy
rates and as a result
profitability under pressure.
There are a number of
additional downside risks to
profitability applicable to
individual segments in the ARA.
The most important factors
are: (1) refinery closures in
the ARA; and (2) a change
in EU fuel tax policy. Refinery
closures in the ARA would
undermine the hub function
and would lower production
and transshipment volumes
in the region. A change in EU
fuel tax policy would lead to
the equalisation of tax levels
between diesel and petrol.
This would rebalance refinery
output with consumption
and would lower the surplus
of petrol and deficit of diesel
in the medium-term. A more
balanced market in Europe
would lead to less demand
for tank storage capacity.
Specifically for ARA fuel oil tank
storage markets, the probability
that Russian fuel oil supply
would drastically go down
because of Russian refinery
upgrades and an increase in
Russian fuel oil export taxes
poses substantial downside risk.
Upside potential is present
in two factors: (1) a turn of
events that would lead to a
deep contango; and (2) a
substantial global increase
in oil product demand.
For more information: www.pjk-international.com
Reference1 IEA MTOMR2013
CountryTIME Austria Belgium Cyprus Estonia Finland France Germany Greece Ireland Italy Latvia LuxembourgMalta NetherlandsPortugal Slovakia Slovenia Spain Euro Area Demand - Total petroleum productsJan2002 1109 2591 0 76 839 8908 10564 2071 804 8124 0 203 0 3503 1455 244 223 6527 Jan2002 47241Feb2002 924 2386 0 68 705 7495 9887 1618 767 7731 0 187 0 3359 1316 222 161 5921 Feb2002 42747Mar2002 1074 2422 0 71 775 7809 10987 1654 754 7783 0 219 0 3492 1334 324 186 6015 Mar2002 44899Apr2002 1067 2379 0 80 702 7514 10785 1785 718 7407 0 210 0 3526 1441 281 187 6132 Apr2002 44214May2002 1023 2379 0 80 712 7153 10391 1394 731 7645 0 206 0 3643 1470 275 151 6183 May2002 43436Jun2002 1117 2288 0 74 665 7520 11110 1423 655 7491 0 191 0 3657 1371 377 144 5692 Jun2002 43775Jul2002 1184 2356 0 82 736 8430 12098 1653 712 8202 0 214 0 3604 1509 324 163 6433 Jul2002 47700Aug2002 1104 2388 0 84 769 7461 11584 1591 697 7400 0 195 80 3544 1379 356 178 6044 Aug2002 44854Sep2002 1179 2418 0 73 770 7777 11786 1469 743 7463 0 219 78 3391 1413 344 213 5914 Sep2002 45250Oct2002 1184 2393 0 82 845 8322 11512 1732 756 8075 0 227 51 3830 1395 377 207 6493 Oct2002 47481Nov2002 1066 2480 0 82 817 7652 11096 1881 711 7232 0 208 88 3554 1216 260 171 6093 Nov2002 44607Dec2002 1098 2857 198 91 893 7624 11047 1957 733 7732 0 142 75 3662 1219 326 261 6067 Dec2002 45982Jan2003 1077 2853 190 76 898 8678 10166 2150 758 7372 86 223 33 3380 1272 301 197 6397 Jan2003 46107Feb2003 1048 2722 192 73 744 8083 10345 1757 743 7596 92 224 52 3437 1188 213 207 5819 Feb2003 44535Mar2003 1168 2528 193 85 726 7724 10692 1954 734 7536 94 235 109 3388 1174 309 179 6331 Mar2003 45159Apr2003 1147 2566 167 78 728 7667 11158 1863 670 7274 94 220 66 3548 1221 277 167 6193 Apr2003 45104May2003 1244 2492 177 82 723 7573 11626 1486 698 7480 86 219 62 3849 1301 264 180 6235 May2003 45777Jun2003 1232 2393 192 78 742 7878 10897 1474 662 7578 95 210 68 3452 1336 303 147 6077 Jun2003 44814Jul2003 1266 2606 217 81 727 8628 11117 1625 659 8033 86 230 82 3625 1444 350 173 6547 Jul2003 47496Aug2003 1127 2309 204 79 774 7547 10369 1597 646 7346 92 205 85 3551 1380 296 171 6287 Aug2003 44065Sep2003 1264 2379 200 80 843 8511 11675 1504 690 7896 103 232 51 3863 1375 304 183 6181 Sep2003 47334Oct2003 1298 2693 184 86 930 8835 11551 1756 761 8075 99 257 76 3883 1357 348 187 6539 Oct2003 48915Nov2003 1055 2377 165 79 758 7463 10631 1759 704 7269 75 225 47 3635 1218 288 137 6335 Nov2003 44220Dec2003 1201 2911 192 87 816 8666 10727 2259 761 8151 94 137 103 3904 1282 295 150 6576 Dec2003 48312Jan2004 992 2967 185 80 780 8445 10100 2155 745 7388 97 228 0 3543 1219 307 170 6473 Jan2004 45874Feb2004 1040 2748 179 72 765 8064 10332 1940 738 7309 96 215 0 3613 1125 278 176 5941 Feb2004 44631Mar2004 1158 2892 168 86 800 8477 11405 1885 824 8018 97 259 0 3864 1307 305 199 6682 Mar2004 48426Apr2004 1066 2756 162 152 734 8123 10633 1721 726 7275 103 238 0 3722 1274 315 163 6422 Apr2004 45585May2004 1061 2508 177 61 727 7119 9573 1474 697 7453 82 231 0 3643 1306 302 175 6362 May2004 42951Jun2004 1174 2007 185 90 740 7869 10466 1525 643 7722 142 232 0 3812 1324 292 139 6473 Jun2004 44835Jul2004 1265 2350 227 125 735 8186 11058 1705 694 8206 90 251 0 3788 1431 313 204 6608 Jul2004 47236Aug2004 1205 2242 206 84 801 7444 10940 1602 699 7268 95 228 0 3640 1375 309 212 6350 Aug2004 44700Sep2004 1318 2677 195 96 802 8411 11286 1607 755 7885 96 251 0 3774 1380 304 221 6426 Sep2004 47484Oct2004 1250 3131 178 97 805 8257 10969 1615 792 8053 111 259 0 3937 1337 326 234 6430 Oct2004 47781Nov2004 1186 2773 181 93 819 7859 11341 1948 708 7427 111 248 0 3821 1358 308 170 6664 Nov2004 47015Dec2004 1111 2963 197 98 830 8412 11606 2047 820 7996 157 256 0 3944 1452 313 208 6773 Dec2004 49183Jan2005 1090 2728 205 77 722 7988 10174 1966 753 7203 128 240 0 3872 1426 277 183 6865 Jan2005 45897Feb2005 1099 2775 192 83 766 8126 10022 1943 780 7129 146 242 0 3513 1319 292 188 6258 Feb2005 44873Mar2005 1183 2919 185 84 838 8745 10433 1712 864 7776 139 268 0 4262 1445 307 202 7027 Mar2005 48389Apr2005 1106 2451 164 80 731 7546 10144 1654 724 7230 145 255 0 4250 1265 299 164 6426 Apr2005 44634May2005 1205 2254 192 79 740 7714 10730 1441 721 7137 142 242 0 4261 1337 325 171 6301 May2005 44992Jun2005 1238 2216 212 67 709 7839 10125 1483 735 7174 126 246 0 4171 1388 330 124 6622 Jun2005 44805Jul2005 1186 1942 226 70 715 7977 10771 1733 664 7563 123 255 0 3897 1387 333 176 6894 Jul2005 45912Aug2005 1239 2513 226 87 848 8163 11936 1587 807 6884 130 241 0 4144 1429 351 238 6605 Aug2005 47428Sep2005 1253 2101 210 84 783 8158 11405 1556 764 7240 120 266 0 4293 1424 288 203 6306 Sep2005 46454Oct2005 1201 2621 197 57 759 7585 11159 1760 745 7462 126 262 0 3994 1332 352 194 6221 Oct2005 46027Nov2005 1185 2553 196 83 769 7948 11114 1980 809 7496 126 261 0 4126 1265 342 184 6568 Nov2005 47005Dec2005 1168 2675 201 78 826 8271 10403 2092 913 7941 124 255 0 4118 1357 340 202 6696 Dec2005 47660Jan2006 1168 2620 203 100 769 8451 10404 2147 832 7445 113 257 0 3994 1397 303 208 6631 Jan2006 47042Feb2006 1093 2545 190 89 721 7786 9846 1939 792 7759 118 247 0 3753 1237 269 191 6195 Feb2006 44770Mar2006 1192 3007 197 99 831 8517 10885 1791 904 8266 113 274 0 4183 1293 345 204 6903 Mar2006 49004Apr2006 1032 2283 172 104 706 7476 9954 1598 762 6598 119 243 0 3789 1190 303 183 6121 Apr2006 42633May2006 1258 2360 187 133 816 7456 10999 1576 720 7112 128 239 0 4044 1214 335 183 6358 May2006 45118Jun2006 1246 2349 207 107 861 7744 10448 1694 711 6978 129 230 0 4082 1194 338 194 6536 Jun2006 45048Jul2006 1233 2203 264 78 805 8050 10730 1723 684 7356 122 236 0 4234 1248 346 200 6630 Jul2006 46142Aug2006 1270 2448 247 90 807 7658 11317 1807 730 6750 129 224 0 4193 1269 358 197 6618 Aug2006 46112Sep2006 1305 2451 228 101 828 7930 11600 1669 741 7239 131 243 0 4285 1233 341 189 6472 Sep2006 46986Oct2006 1350 2684 220 90 899 8362 11500 1969 780 7214 130 259 0 4201 1180 318 249 6577 Oct2006 47982Nov2006 1149 2337 214 103 836 7552 11132 1995 842 7319 135 235 0 4081 1106 314 193 6553 Nov2006 46096Dec2006 1034 2220 228 96 783 7786 10544 2055 772 7152 135 228 0 4046 1213 322 180 6425 Dec2006 45219Jan2007 1129 2740 224 98 875 8291 9468 2160 789 6853 119 237 0 4560 1308 293 178 6607 Jan2007 45929Feb2007 998 2337 208 110 875 7198 8730 1722 741 6774 114 221 0 4304 1117 337 175 5986 Feb2007 41947Mar2007 1142 2686 208 124 819 7843 10063 1809 756 7273 133 254 0 4506 1261 267 182 6899 Mar2007 46225Apr2007 1065 2267 196 123 705 7338 9036 1572 730 6728 127 230 0 4449 1206 341 177 6444 Apr2007 42734May2007 1170 2544 214 122 785 7333 9738 1572 727 7281 136 241 0 4829 1269 344 171 6392 May2007 44868Jun2007 1265 2144 234 122 780 7562 9638 1712 700 6871 130 237 0 4825 1168 336 181 6548 Jun2007 44453Jul2007 1098 2254 278 63 829 7965 10181 1808 762 7192 152 244 0 4885 1277 364 190 6858 Jul2007 46400Aug2007 1139 2381 260 99 850 7854 10514 1763 816 6591 155 223 0 4825 1298 355 197 6765 Aug2007 46085Sep2007 1174 2433 247 96 873 7681 10271 1654 797 6781 138 241 0 4734 1172 349 231 6276 Sep2007 45148Oct2007 1278 2713 246 124 917 8764 10820 1927 859 7382 120 261 0 4832 1230 332 258 6866 Oct2007 48929Nov2007 1129 2559 208 139 813 8185 10097 1855 813 7074 145 254 0 4656 1234 429 208 6632 Nov2007 46430Dec2007 1073 2606 230 109 789 7491 9838 2072 735 7141 133 240 0 4647 1274 344 227 6492 Dec2007 45441Jan2008 1103 2824 249 66 767 8351 10200 2088 749 6992 129 235 0 4628 1179 351 233 6689 Jan2008 46833Feb2008 1058 2801 238 66 761 7545 9879 1985 761 6825 118 240 0 4454 1128 318 225 6266 Feb2008 44668Mar2008 1069 2859 196 126 742 7658 9835 1627 759 6685 115 243 0 4565 1205 314 218 6515 Mar2008 44731Apr2008 1127 3072 200 129 815 7858 9952 1518 819 6649 129 254 0 4288 1242 290 170 6540 Apr2008 45052May2008 1166 2692 219 130 816 7547 9385 1489 746 6895 129 241 0 4489 1200 346 262 6329 May2008 44081Jun2008 1156 2635 243 129 794 7492 9559 1582 702 6723 132 230 0 4360 1126 349 197 6039 Jun2008 43448Jul2008 1165 2820 281 129 824 7886 10763 1765 705 7373 136 244 0 4550 1248 373 215 6658 Jul2008 47135Aug2008 1110 2906 265 114 758 7553 10797 1715 696 6464 137 209 0 4574 1196 385 220 6256 Aug2008 45355Sep2008 1224 3068 244 129 881 7990 11335 1695 762 6810 141 248 0 4451 1172 374 281 6298 Sep2008 47103Oct2008 1190 3253 227 84 871 8352 11763 1874 806 7047 136 244 0 4420 1152 376 273 6380 Oct2008 48448Nov2008 991 2717 202 100 769 7395 10477 1949 762 6424 119 244 0 4072 1091 339 251 6145 Nov2008 44047Dec2008 1061 2876 230 113 784 8448 10215 2039 820 6816 140 209 0 4008 1148 339 242 6416 Dec2008 45904
30000
35000
40000
45000
50000
55000
Jan2
002
Aug2
002
Mar
2003
Oct20
03
May
2004
De
c200
4 Ju
l200
5 Fe
b200
6 Se
p200
6 Ap
r200
7 Nov
2007
Ju
n200
8 Ja
n200
9 Au
g200
9 M
ar20
10
Oct20
10
May
2011
De
c201
1 Ju
l201
2 Fe
b201
3 Se
p201
3 Ap
r201
4
Volum
e [kto
n/m
onth
] Euro Area Demand -‐ Total petroleum products
Euro Area Demand -‐ Total petroleum products
-‐9
-‐7
-‐5
-‐3
-‐1
1
3
-‐55
-‐45
-‐35
-‐25
-‐15
-‐5
5
15
25
35
Leve
l [M
b]
Date
Balance global supply / demand, Crude
Implied stock change (RH)
cumm. Stock change (LH)
1
2
3
4
5
-‐50
-‐45
-‐40
-‐35
-‐30
-‐25
-‐20
-‐15
-‐10
-‐5
0
5
cumm. Stock change (LH)
cumm. Stock change (LH)
Eurozone consumption of petroleum products
Calendar spreads versus global supply/demand balanceTop chart: ICE Brent calendar spreadsMiddle chart: Global supply of crude oil minus global demand for crude oil (green bar-chart) Bottom chart: Cumulative stock change (purple line)
Stable calendar spreads
Persisting
Backwardation/shallow contango
Sou
rce
: Euro
stat
Sou
rce
s: EIA, Th
om
son
Re
ute
rs
page header
30 September/October 2014 • TANK STORAGE
versatile.
Always a leading innovator, ROSEN not only supplies pipeline customers with the latest diagnostic and system integrity technologies but also offers flexible solutions and all-round support for plants & terminals.
www.rosen-group.com
Topsafe to expand in ChinaTopsafe, a third party logistics service provider, owns and operates a petrochemical storage facility in Guangdong province, south China. The site is located at Humen Port Lisha Island Petrochemical Base in the central region of The Pan Pearl River Delta, where approximately one tenth of China’s GDP is generated annually.
The current facility has 320,000m3 capacity in 122 tanks and a jetty of 50,000 dwt. It serves customers in south China as well as across the Asia Pacific and its throughput exceeds 3 million tonnes a year. To cater for China’s economic development Topsafe has been growing
its terminal since 2007. Last year, as part of phase two, it added 16 tanks and took control of 15% of the jetty from Humen Port Group to better serve its customers.
The terminal’s location serves as an entry point from the Middle East, with at least 15 other terminals in the vicinity. To keep up with demand, phase three will add 140,000m3 in 2016 to take the facility to a total of 460,000m3. Topsafe will also build a new jetty of 80,000 dwt.
Mr. Goh, supply chain expert at Topsafe, expects the bulk liquid storage market in China to continue its growth, but at a relatively slower pace than the last few years. To expand its network
across the country the company has visited several additional potential storage sites. ‘We are looking at Tianjing in northeast China and in Shanghai in east China,’ Goh explains.
Topsafe keeps its competitive edge by ensuring its terminal is up to international standards. It adheres to the European Chemical Distribution Institute’s inspection protocols as well as the Association of International Chemical Manufacturer (AICM), responsible-care policies.
For more information: www.topsafe.cn
Topsafe in China
http://www.topsafe.cn
文字简介。。。
Chemistry and EnvironmentChemistry and EnvironmentChemistry and Environment
Phase ɪɪ Terminal 140,000 M3
Phase ɪɪ Jetty DWT 80,000
Topsafe in China
http://www.topsafe.cn
文字简介。。。
Chemistry and EnvironmentChemistry and EnvironmentChemistry and Environment
Phase ɪɪ Terminal 140,000 M3
Phase ɪɪ Jetty DWT 80,000
Topsafe in China
http://www.topsafe.cn
文字简介。。。
Chemistry and EnvironmentChemistry and EnvironmentChemistry and Environment
Phase ɪɪ Terminal 140,000 M3
Phase ɪɪ Jetty DWT 80,000
profile
TANK STORAGE • September/October 2014 31
versatile.
Always a leading innovator, ROSEN not only supplies pipeline customers with the latest diagnostic and system integrity technologies but also offers flexible solutions and all-round support for plants & terminals.
www.rosen-group.com
page header
32 September/October 2014 • TANK STORAGE
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OPW-ES-Tank-Storage-June-AD.indd 1 5/9/14 10:20 AM
TANK STORAGE • September/October 2014 33
southeast Asia
The long awaited Pengerang
Independent Terminals
facility, located at the
southern tip of Peninsular
Malaysia’s Johor State, has
now started operations.
Built as a joint venture
by Malaysia’s Dialog Group
Berhad, Royal Vopak and
Johor state government,
Pengerang terminal is the first
independent crude oil terminal
to open in southeast Asia.
Plans to build and operate
the terminal have been
triggered by growing crude oil
and petroleum product import
flows into Asia and Australia.
Phase one (a) of the
terminal was commissioned
in April, offering storage
capacity of 432,000m3 for
clean petroleum products.
The terminal’s capacity will
be expanded to almost
1.3 million m3 when the first
phase of Pengerang is fully
commissioned early next year.
Phase one (b), completed
in June, will add a further
432,000m3 when the new
tanks designed to hold
clean petroleum products
are commissioned during
Q3 2014, lifting the terminal’s
capacity to 864,000 m3
Phase one (c), due for
commissioning early in 2015, will
then add 420,000m3 of storage
capacity intended to hold
crude oil, boosting Pengerang
to 1.28 million m3 in capacity.
Constructed on 150
hectares of reclaimed sea-bed
land and located in Pengerang
Integrated Petroleum
Complex, the storage terminal
is served by a six berth
deepwater jetty with a draft
of up to 24m and capable
of handling VLCC tankers.
At the official opening
ceremony Malaysian Prime
Minister Najib Razak said that
MYR35 billion (€8.4 billion)
already had been invested
in developing oil and gas
facilities at the site and that
a further MYR6 billion was
earmarked for investment
over the next five years.
‘The projection is that for
every MYR1 billion we invest
in this project will have a
multiplier effect of generating
a return of MYR20 billion,’
the Prime Minister said.
Pengerang terminal is
designed to develop and
reposition southern Johor as a
regional oil storage and trading
hub. The facilities have been
designed to complement
Dialog’s existing storage
facilities at Langsat terminal
and Vopak’s various storage
terminal facilities in Singapore.
Pengerang is strategically
located near Pengerang
Integrated Complex which is
being developed by Petronas,
the national oil company.
Dialog is not the only
Malaysian company that sees
a bright future for the nation’s
storage terminal sector. KIC
Group, which operates a
220,000m3 capacity fuel oil
and gasoil terminal in Port
Klang and two jointly operated
floating storage units, also
expects government support
for the oil and gas sector to
benefit terminal operators.
‘We expect demand
for storage to grow with the
relaxation and incentives given
by the Malaysian government
to trading companies that are
intending to open up shop
here in Malaysia,’ Capt Sudhir
Vijayan, senior VP for business
and assets for the KIC Group
of companies, explains.
KIC is keeping its eye
open for future business
opportunities but is not
planning any expansion at
present. ‘There has been a
slowdown in the use of tanks in
Port Klang, particularly in the
fuel oil market which is our main
market,’ comments Vijayan.
‘This is mainly due to the
emergence of Singapore-
backed bunker operators in
the Port Klang market after the
decline of Malaysia’s largest
physical bunker supplier. These
newer operators seem to
be getting their source from
suppliers who are operating
from Singapore or from the
floating storages from around
the Melacca Straits.’
LBC is the latest company
to reveal an interest in
developing a large capacity
petroleum terminal in Malaysia.
‘We are looking at a
greenfield terminal project in
south Johor – it will be more
about petroleum,’ says an
LBC source. ‘We are working
with an oil trader partner. We
have not decided the size of
the terminal; it could be from
600,000m3 to 1 million m3. We
have identified a couple of
possible locations but we have
not decided which one.’
Vopak’s plans
‘The overarching supply
versus demand imbalance
will continue to create
storage opportunities in the
Slight slowdown but overall positivity
34 September/October 2014 • TANK STORAGE
region. Chemical and energy
needs will continue to rise
in Asia with the progress of
emerging markets and rising
affluence in the region. This
provides opportunities for
third party storage providers
like us,’ comments Patrick
van der Voort, division
president at Vopak Asia.
‘Within the region, trends
such as refinery closures in
Australia, the increase in the
intra-regional clean petroleum
products trade and growing
LPG/naphtha imports as a
result of shale developments
in North America also
present possibilities for us.’
In Singapore, where Vopak
has 3 million m3 of petroleum
and chemical storage facilities
(including for gaseous liquids) in
four terminals, Vopak recently
signed a contract to operate
the first phase of the Jurong
rock cavern storage scheme.
Its JV consortium,
Banyan Caverns Storage
Services (Vopak 45%), has
been awarded a 15 year
operatorship for the first phase
of the Jurong Rock Caverns
(JRC) for oil products. JRC is
southeast Asia and Singapore’s
first subterranean hydrocarbon
storage facility and located
on Jurong Island. Phase one
of the project comprises five
caverns and will provide
approximately 1.47 million
m3 of oil storage space.
Also in Singapore,
Vopak added 47,000m3 of
chemical storage tanks at
its Penjuru terminal early this
year along with 10,000m3
of ammonia storage tanks
at its Banyan terminal.
In addition to expanding
storage capacity, Vopak also
has carried out work at several
terminals in southeast Asia
to improve cargo handling
and terminal efficiency.
‘Some of our recent
terminal improvements include
jetty debottlenecking work in
one of our oldest terminals in
Asia, Sebarok in Singapore, to
improve jetty turnaround time.
This was completed in Q2 this
year. Also completed in Q2 was
our Jetty 2 expansion in Map Ta
Phut industrial port in Thailand,’
van der Voort explains.
‘We are positive about
southeast Asia’s bulk
liquids storage industry. The
demand and consumption of
crude, petroleum products,
chemicals, gases and
vegetable oils will continue
to grow in Asia and we see a
significant shift in trade flow
patterns over the next few
years,’ van der Voort says.
‘With significant scale
in capacity, close proximity
between locations and
to international shipping
routes, and gross trade for
some oil products set to rise,
the Singapore-Malaysia-
Indonesia region has the
potential to develop into
a Straits hub similar to the
ARA hub in Europe.’
Also in Johor state, VTTI,
the independent bulk terminal
storage company that is 50%
owned by the Vitol Group
and 50% by MISC Berhad,
Malaysia’s international
shipping conglomerate, is
constructing a 220,000m3
phase two expansion
scheme at the company’s
ATB Tanjung Bin terminal.
Located on a 30 hectare
section of a 50 hectare
former mangrove forest site,
ATB Tanjung Bin phase one
consists of 890,000m3 of storage
capacity of which 340,000m3
is for black products and
550,000m3 for white products.
Phase one storage facilities
comprise 41 tanks that range in
size from 7,000m3 to 45,000m3.
VTTI’s phase two expansion
scheme involves constructing
a further 250,000m3 of storage
capacity which will boost
the terminal to 1.14 million
m3 when construction is
completed around Q2 2015.
Indonesia
Companies planning to
establish a strategic petroleum
storage base in Indonesia
include Sinopec Kantons, the
crude oil trading and logistics
arm of China Petroleum
and Chemical (Sinopec).
In 2012 Sinopec
announced plans to take a
95% shareholding in the PT
West Point terminal project
in Indonesia’s Batam Island
Free Trade Zone (FTZ), near
Singapore. The $850 million
(€644 million) investment
is intended to boost
Sinopec’s petroleum trading
activities in the region.
Indonesia has allocated
some 360 hectares of land
in Batam FTZ to construct
the proposed 2.6 million
m3 capacity PT West Point
terminal along with associated
refinery and petrochemical
projects that are due to be
in service when phase two of
the terminal is completed.
Phase one storage
facilities totalling 1.3 million
m3 are due to be completed
at PT West Point in 2016.
Indonesian islands close to
Singapore and Johor state in
southern Peninsular Malaysia
are being used to expand
petroleum storage capacity
in southeast Asia due to the
availability of land to build
terminals and the terminal’s
proximity to Singapore.
Oiltanking is constructing
phase one (a) of Oiltanking
Karimun, a 760,000m3
petroleum storage scheme
on Indonesia’s Karimun
Island, near Batam Island.
Karimun is just south
west of Singapore and
strategically located at the
mouth of the Malacca Straits.
The terminal is due to be
commissioned in Q3 2015.
‘As land on Jurong Island
is scarce, the Singaporean
government some time back
decided to no longer support
new terminal projects which
are purely focussed on trading
and not manufacturing. The
forecast however shows that
regional demand of petroleum
products will continue to
grow year-on-year and to
support this growth on-shore
terminals and logistical
services will be required. On
this basis storage service
providers ventured out to the
areas directly surrounding
Singapore’s oil trading hub,
i.e. Malaysia and Indonesia,
according to Douglas van
der Wiel, commercial VP,
Oiltanking Asia Pacific.
‘As such we also looked
at all the surrounding areas
for a new terminal site and
eventually chose Karimun.
Drivers for us were our
experience of operating a
terminal in Indonesia, the
good location of Karimun and
its existing Free Trade Zone,
the land preparation cost,
and that at Karimun there is
well established ship-to-ship
transshipment anchorage
where significant volume is
already being handled.
‘The facilities at Karimun
include four deepwater jetties
with the largest being able to
cater for VLCCs alongside. It
will be a world class terminal
that can load ships at up to
6,000m3 per hour,’ van der Wiel
says. ‘The Class I tanks for clean
products will provide utmost
flexibility as each avail of
dedicated filling/suction lines as
well as dedicated circulation
lines for blending. The system
for the Class III tanks, which
mainly caters for fuel oil, will
also have superior capability to
handle heavy grades. Blending
will be conducted through air
sparging which has proven to
be a highly effective method.
Naturally all tanks have
central sumps for stripping
enabling the possibility to
smoothly switch products.
‘Oiltanking has secured
a large part of the initial
760,000m3, however capacity
is still available and we
are starting to intensify our
sales and marketing efforts
to secure the balance.’
Space is available at
the existing site for a further
400,000 to 500,000m3 storage
to be built as part of phase
one (b). In addition, van der
Wiel notes that additional
land and waterfront is
available next to the site
that could be developed
for a further 1 million m3 of
oil storage capacity.
southeast Asia
ROTTERDAMMarch 18 - 20
got MAGS?
Call the experts in tank grounding today! 877-560-9288
The MAGS is a bypass conductor from Lightning Master Corporation.
Visit us at: www.api.org/events-and-training/calendar-of-events/event-materials/tvp-endorsers
Read more on page 75
page header
TANK STORAGE • September/October 2014 35
ROTTERDAMMarch 18 - 20
got MAGS?
Call the experts in tank grounding today! 877-560-9288
The MAGS is a bypass conductor from Lightning Master Corporation.
Visit us at: www.api.org/events-and-training/calendar-of-events/event-materials/tvp-endorsers
Read more on page 75
page header
36 September/October 2014 • TANK STORAGE
Are know-how
and technology
able to improve
efficiency when
protecting assets
and environment?
ITURRI OIL & GAS International Forum 2014
II Risk Assessment in Petrochemical plantsFernando Alonso, risk consultant at marsh.
Case Study: Buncefield 2005Mark Samuels, divisional officer at essex county fire brigade.
Major events: Advantages of sharing resources in case of a major emergencyMark Samuels, divisional officer at essex county fire brigade.
Storage Tanks are critical to ongoing business at your facility. How can we ensure that risks are minimized cost effectively?Dr. Niall Ramsden, director of resource protection international and leader of lastfire project.
Complementary solution to fixed water pumping system in your plantSpeaker to be confirmed
How we should tackle professional resources during a turnaround?
Gerardo Alvarez Cuervo, former refinery manager at repsol refinery cartagena, repsol refinery la coruña and repsol refinery puertollano. vice president of the spanish maintenance association (aem).
Evaporative loss from floating roof tanks and proposals for its reductionCarlos Cruz, industrial engineer at iturri group.
State of the Art on Early Detection of Oil Spills for offshore and onshore Oil & Gas assetsAntonio Pérez Lepe, phd-eng, project manager at the exploration and production division at repsol.
Importance of an external consultant in crisis managementEric Lavergne and Ewen Duncan, professional industrial fire fighters and consultants at williams fire & hazard control.
Balancing foam performance with environmental concerns – the dilemma! Dr. Niall Ramsden, director of resource protection international and leader of lastfire project.
OCTOBER 29th - 30th
WEDNESDAY - THURSDAY
ORGANIZES COLLABORATE
Contact: [email protected] / ITURRI Group: C/ Roberto Osborne, 5. 41007 Seville
Are know-how
and technology
able to improve
efficiency when
protecting assets
and environment?
ITURRI OIL & GAS International Forum 2014
II Risk Assessment in Petrochemical plantsFernando Alonso, risk consultant at marsh.
Case Study: Buncefield 2005Mark Samuels, divisional officer at essex county fire brigade.
Major events: Advantages of sharing resources in case of a major emergencyMark Samuels, divisional officer at essex county fire brigade.
Storage Tanks are critical to ongoing business at your facility. How can we ensure that risks are minimized cost effectively?Dr. Niall Ramsden, director of resource protection international and leader of lastfire project.
Complementary solution to fixed water pumping system in your plantSpeaker to be confirmed
How we should tackle professional resources during a turnaround?
Gerardo Alvarez Cuervo, former refinery manager at repsol refinery cartagena, repsol refinery la coruña and repsol refinery puertollano. vice president of the spanish maintenance association (aem).
Evaporative loss from floating roof tanks and proposals for its reductionCarlos Cruz, industrial engineer at iturri group.
State of the Art on Early Detection of Oil Spills for offshore and onshore Oil & Gas assetsAntonio Pérez Lepe, phd-eng, project manager at the exploration and production division at repsol.
Importance of an external consultant in crisis managementEric Lavergne and Ewen Duncan, professional industrial fire fighters and consultants at williams fire & hazard control.
Balancing foam performance with environmental concerns – the dilemma! Dr. Niall Ramsden, director of resource protection international and leader of lastfire project.
OCTOBER 29th - 30th
WEDNESDAY - THURSDAY
ORGANIZES COLLABORATE
Contact: [email protected] / ITURRI Group: C/ Roberto Osborne, 5. 41007 Seville
TANK STORAGE • September/October 2014 37
tank storage in China
The storage terminal sector
has seen a number of
new developments lately,
reflecting China’s fast
economic development
over the past decade.
With suitable locations for
terminals increasingly difficult
to find in east China, in the
Shanghai area in particular,
international terminal operators
are looking elsewhere. South
China, especially Guangdong
and Fujian provinces, is
attracting a number of
foreign terminal operators.
Others are also looking in
northern China, where the
expanding petrochemical
sector is creating growing
demand for tank storage
facilities to support the region’s
industrial development.
‘Petroleum and chemical
demand is increasing in
China but there is a low
growth rate because the
domestic and export markets
are slow. Demand growth
is about 5% lower than GDP
for refined products and
chemicals,’ explains Katrina
Chen, consulting director for
oil and gas at ICIS China.
‘Diesel demand has
decreased about 1% but
petrol demand is up about 10%
because the car population
has increased. However,
the micro economy is not
good, so there is an overall
decrease in the growth rate.’
Demand for
petrochemicals is also being
affected by government policy
to reduce environmental
pollution and pursue a long-
term target of developing a
modern industrial base with a
core of large-scale industrial
units replacing the former
industrial base of small-scale
local factories that are both
energy inefficient and polluting.
China has recently seen an
expansion of refining capacity
with the result that output of
some products now exceeds
domestic demand, forcing the
state-run refining sector to seek
export markets for its excess
capacity. It also means the
completion of some refinery
expansion schemes will be
postponed from 2015 to 2020.
Exports of petrol and diesel
currently total around 5 million
tonnes a year combined
and are shipped mostly to
Asian markets including South
Korea, Singapore and India.
The petroleum exporters
are mainly Sinopec and
China National Petroleum
Corporation (CNPC) as
they have export rights,
whereas traders do not.
With the domestic oil
and refined products markets
being dominated by China’s
state-run oil companies,
which operate their own
terminals, opportunities to run
third party oil terminals are
limited. Also, opportunities for
foreign oil traders in China
are limited which, in turn,
restricts demand for third
party oil storage facilities.
‘Foreign traders import
volumes are very small, except
for fuel oil for bunkering,’
Chen says. ‘Bunker oil is
imported but this market is
operated mainly by Chinese
companies. There are about
10 big bunker oil companies
in China at present.’
Foreign-owned refineries in
China such as BP’s and Shell’s
just supply the retail market,
they are not trading products.
Chemical storage growth
Demand for third party
chemical storage continues
to grow as the volume of
chemical imports rises to meet
the shortage in domestic
production. However, the
increase rate has slowed
over the past few years.
China imports methanol,
polyolefins, naphtha, benzene
and other products from
South Korea and east Asia.
High value added chemicals
are imported from Japan.
The structure of China’s
chemical market has created
more opportunities for
foreign terminal operators
to enter the market and
provide local storage services
for multinational clients
they serve worldwide.
More low value added
general products are being
made in China, while high
value added chemical
products are imported.
Propylene and polyolefins
come from major refineries’
downstream plants but
methanol, PVC and caustic
soda are mainly from private
companies because their
capacities are smaller.
‘Chemical storage is at
a consolidation stage. In the
past a lot of private companies
operated chemical storage
terminals but their turnover
has been low, so they are
combining to get more cargos
in their tanks,’ Chen explains.
A number of international
chemical terminal operators
with storage facilities in China
are planning to expand their
capacity with several also
planning to offer rail wagon
loading and discharge services,
which will enable them to serve
a larger hinterland market.
Oiltanking has 139,000 m3 of
storage capacity in the Nanjing
Petrochemical Industrial Park
and is currently expanding
by 45,000m3 to bring the total
capacity to 184,000m3.
‘We have tanks ranging
from 2,000m3 to 20,000m3 to
cater for specialty as well as
commodity chemicals. Its new
tanks will range from 3,000
to 10,000m3. The expansion
Third party terminal market enters new expansion phase
Are know-how
and technology
able to improve
efficiency when
protecting assets
and environment?
ITURRI OIL & GAS International Forum 2014
II Risk Assessment in Petrochemical plantsFernando Alonso, risk consultant at marsh.
Case Study: Buncefield 2005Mark Samuels, divisional officer at essex county fire brigade.
Major events: Advantages of sharing resources in case of a major emergencyMark Samuels, divisional officer at essex county fire brigade.
Storage Tanks are critical to ongoing business at your facility. How can we ensure that risks are minimized cost effectively?Dr. Niall Ramsden, director of resource protection international and leader of lastfire project.
Complementary solution to fixed water pumping system in your plantSpeaker to be confirmed
How we should tackle professional resources during a turnaround?
Gerardo Alvarez Cuervo, former refinery manager at repsol refinery cartagena, repsol refinery la coruña and repsol refinery puertollano. vice president of the spanish maintenance association (aem).
Evaporative loss from floating roof tanks and proposals for its reductionCarlos Cruz, industrial engineer at iturri group.
State of the Art on Early Detection of Oil Spills for offshore and onshore Oil & Gas assetsAntonio Pérez Lepe, phd-eng, project manager at the exploration and production division at repsol.
Importance of an external consultant in crisis managementEric Lavergne and Ewen Duncan, professional industrial fire fighters and consultants at williams fire & hazard control.
Balancing foam performance with environmental concerns – the dilemma! Dr. Niall Ramsden, director of resource protection international and leader of lastfire project.
OCTOBER 29th - 30th
WEDNESDAY - THURSDAY
ORGANIZES COLLABORATE
Contact: [email protected] / ITURRI Group: C/ Roberto Osborne, 5. 41007 Seville
tank storage in China
38 September/October 2014 • TANK STORAGE
is on target to be completed
in Q1 2015. ‘Demand is
strong and the outlook looks
promising, says Douglas van
der Wiel, commercial VP of
Oiltanking Asia Pacific.
Oiltanking’s terminal has
two jetties that can handle
tankers up to 50,000 dwt
which allows customers to
bring large (parcel) tankers
further down the Yangtze
River thereby enabling them
to optimise costs. In the past
customers would have had
to break bulk further away
from the area of demand.
‘In addition to serving
the customers logistics by
water front and truck we
are also connected to the
national railway system. The
rail car loading and unloading
facility was completed two
years ago and it is building
up momentum,’ van der
Wiel says. ‘The domestic
petrochemicals such as
methanol are increasingly
produced in the coal rich
but land locked hinterland of
China. Hence, products need
to be transported by rail to the
consuming areas, such as the
Yangtze River delta, in particular
Nanjing. Now Oiltanking Nanjing
has all the features to serve
customers that require both
jetty and rail infrastructure’.
Oiltanking also operates a
90,000m3 capacity chemical
terminal in the Daya Bay
Petrochemical Industrial
Park, located 1.5 hours north
east of Hong Kong in the
Guangdong province.
The terminal comprises
storage tanks ranging from
1,250m3 to 5,300m3, again
with a strong focus on serving
the petrochemical park
through integrated storage
and logistic solutions.
The terminal also serves the
third party market for inland
distribution by truck. The facility
is being supported by a jetty
which can handle up to 12,500
dwt tankers and it is planning to
add berths that can cater for
30-50,000 dwt. The company
commissioned three spheres
to store approximately 9,000m3
of butadiene and C4 products
at the end of last year.
‘Over the past 10 years
the progress in the Daya Bay
Petrochemical Industrial Park
has been impressive and
the developments continue.
CNOOC has embarked on
a second refinery project
and ethylene cracker.
Naturally, Oiltanking is keen
to further expand its facilities
to accommodate volumes
related to this development,’
van der Wiel remarks.
‘China’s growing chemicals
demand will continue to require
third party chemical storage
facilities. Standards are being
raised and opportunities for
a company like Oiltanking
are abundant. We are
strengthening our teams and
business development activities
and with a clear strategy it will
only be a matter of time before
we can announce our third leg
in China,’ van der Wiel says.
Meanwhile, Odfjell is
preparing to commission
the first phase of its new joint
venture Odfjell Nangang
Terminals (Tianjin) terminal
in Q4 this year. Located in
Nangang Industrial Zone of
Tianjin Port in northeast China,
the terminal will have three
berths capable of handling
vessels up to 50,000 dwt and will
provide 345,000m3 of chemical
storage when fully developed.
Phase one, totalling
145,000m3 of storage tanks,
ranging in size from 1,500m3
to 30,000m3, is expected
to enter service around
October. Facilities will include
a multipurpose and vapour
return jetty line, eight truck
filling stations and direct
pipeline transfer capability
within Nangang Industrial
Zone. A national rail freight
connection will be built to
serve the terminal in future.
Tianjin Economic-
Technological Development
Area (TEDA) has selected Odfjell
as Nangang Port Company’s
exclusive joint venture partner
for the public liquids terminal
and jetty facilities in the
Nangang Industrial Zone.
‘The Chinese central
government plan is for
this area to become the
largest petrochemical
industry base in northeast
China, accommodating
the production of over
200 petrochemical
products,’ Odfjell says.
Odfjell already has two
operational terminals in China.
The company operates a
100,000m3 petrochemical
terminal at Jiangyin Economic
Development Zone, located
150km west of Shanghai, and a
120,000m3 joint venture terminal
at Dalian New Port in northeast
China that handles mineral
oil and chemical cargoes.
Government plans to build
a new petrochemicals hub
in Dalian could offer Odfjell
additional opportunities to
develop terminal operations
in the northeastern region.
‘Odfjell has looked at
Chang Xing Island near Dalian
to build chemical storage,’
says an industry source. ‘Chang
Xing is being developed as a
petrochemicals hub because
of environmental concerns.
A PX plant problem caused
the plant to be closed and
the government decided
to put all petrochemicals
on Chang Xing.’
Meanwhile, in southern
China, Odfjell is preparing
to build one of several new
petrochemical terminals
planned in Fujian province,
where the company has signed
a joint venture agreement with
the Founder Group to become
50:50 equity partners in a
storage facility in Quanzhou.
Odfjell is investing $21
million (€16 million) to take a
50% stake in Fujian Fantong
Terminals, which will be
renamed Odfjell Terminals
Fujian (Quanzhou). It will build
a new chemical terminal in
Quangang Industrial Zone,
on the south side of Meizhou
Bay that Odfjell Terminals
will operate and manage.
Planned to enter
commercial service in early
2016, Odfjell Terminals Fujian has
almost 15 hectares of available
land that will be sufficient
to build about 185,000m3 of
storage capacity. Facilities
will include two jetties, one
capable of handling vessels up
to 100,000 dwt while the other
jetty will handle small vessels
and barges up to 5,000 dwt.
According to Odfjell, the
joint venture has an option
to acquire 23 hectares of
adjoining land, which is large
enough to build a further
400,000m3 of storage capacity
if storage demand develops
as expected in future.
Elsewhere in Fujian
province, LBC which owns
the LBC Shanghai Shipping
Terminal in east China, is
planning to acquire an under
construction petroleum and
chemical terminal in Fuzhou
Jiangyin Chemical Park.
Phase one, totalling
181,000m3 and consisting of
30 tanks ranging from 1,000m3
to 5,000m3, is due to enter
commercial service around
October. Facilities will include
five drumming lines and a
two berth jetty with one berth
designed to handle vessels
up to 100,000 dwt and the
smaller berth vessels and
barges up to 5,000 dwt.
‘The terminal will be a
storage and transshipment
hub. The chemical park is
opposite Taiwan, which lies
about 100 miles away across
the Taiwan Strait,’ explains an
informed source. ‘The terminal
will have a rail cargo link
which is rare in China. It’s more
economical to transport by rail
over 1,000km than by truck.
Chemicals and petroleum
products are expected from
Taiwan with the rail link allowing
delivery across China.’
The Fujian terminal site is
large enough for a terminal
of 900,000m3 to be built
eventually. Phase two of the
terminal is planned to begin
construction in early 2015.
Around 30 tanks totalling
220,000m3 are expected to
be built with large tanks of
about 20,000m3 planned to
store petroleum products.
Phase two will take one year
tank storage in China
TANK STORAGE • September/October 2014 39
to complete. Construction
will be finished in 2016. Phase
three of about 500,000m3
will depend on the market.
LBC is planning to acquire
the Fuzhou Jiangyin Chemical
Park terminal to meet
expected continuing growth in
demand for chemical storage
in southern China as chemical
imports are forecasted to grow
to cover a continuing shortfall
in domestic production.
Elsewhere, LBC is
expanding storage at
LBC Shanghai Shipping
Terminal where 10 new tanks
totalling about 8,000m3
in capacity are due for
completion in mid-2015.
Sited at a river mouth
location on the Changjiang
River at Wai Gao Qiao in
Pudong, Shanghai, LBC
Shanghai Shipping Terminal has
54 tanks including 17 stainless
steel tanks ranging from 650m3
to 3,000m3, which provide
66,200 m3 of storage capacity.
Other facilities include
three tanker berths, seven
drumming lines and 10
tanker truck loading bays.
Meanwhile, Vopak
continues to expand its storage
facilities in China with the
recent acquisition of a 30%
shareholding in Zhangzhou
Gulei Haiteng Jetty Investment
Management (Haiteng)
which owns a petrochemical
terminal with 890,000m3 of
storage in Fujian province’s
Gulei Industrial Park. Opened
in 2013, the terminal has
long terminal agreements to
provide storage services for two
petrochemical plants, to which
it is connected by pipeline.
Vopak is also expanding
storage capacity in
neighbouring Guangdong
province where work is
underway in Dongguan to
build what will be Vopak’s ninth
chemical terminal in China.
The terminal will be capable of
storing 153,000m3 of chemical
products, giving Vopak a
combined chemical storage
capacity of about 1.76 million
m3 in China when completed.
Elsewhere, in Hainan
province in southern China,
Vopak is building a major oil
terminal at Yangpu as a joint
venture enterprise with the
State Development Investment
Corporation (SDIC) to handle
crude and petroleum products.
The site chosen for
development is believed to be
suitable for expansion to store
up to 5.2 million m3 of oil and
petroleum products eventually.
Vopak has a 49%
shareholding while SDIC
holds a 51% controlling stake
in the terminal that will be
operated by Vopak. Located
on a 58 hectare site in Yangpu
Economic Development
Zone, the terminal will act
as a transshipment hub
for oil cargoes originating
in the Middle East and
Africa for buyers in Asia.
Phase one of Yangpu
terminal will be capable
of storing 1.32 million m3 of
crude oil and petroleum
products. Facilities being
installed include two jetties,
one with a berth capable
of handling VLCC carriers
up to 375,000 dwt.
According to Vopak,
Yangpu will be the first
third party terminal in
southern China able to
receive VLCCs of this size.
Constructing Yangpu terminal
also marks an important
stage in the development
of oil and petroleum
transshipment and storage
hub operations in China.
Meanwhile, Singapore-
listed CEFC International has
announced it is to set up a
joint venture company with its
wholly owned subsidiary, Hong
Kong CEFC Petrochemical
and Energy, and Rizhao Port
Oil Terminal, a subsidiary of
China’s Rizhao Port Group, to
set up a 600,000m3 capacity
oil storage terminal in Rizhao
Port, Shandong Province.
Rizhao Port Oil Terminal
currently operates oil storage
facilities totalling 750,000m3
in the port where it is the sole
oil storage company.
page header
40 September/October 2014 • TANK STORAGE
ATEC STEEL – AN INDUSTRY LEADER IN FIELD-WELD, SHOP-WELD, SPECIALTY STEEL FABRICATION & FIELD CONSTRUCTION SERVICES!
Power Industry
#1 in Steel Tank Fabrication & Construction!Inquiry: [email protected] www.atecsteel.com Phone: 877.457.5352
Get Connected with the Unmatched Performance of ATEC Steel... The Industry Leaders in Field-Weld Tank & Specialty Steel Construction!
At ATEC Steel, it all starts with the right support team. All of our employees have extensive backgrounds in storage tank fabrication, specialty steel fabrication and field construction services.
IN THE SHOP ATEC manufacturing processes set the benchmark for the highest quality steel fabrication available. With over 100,000 square feet of fabrication space, state-of-the-art fabrication equipment, documented quality control procedures, economies of scale processes and precision manufacturing standards, ATEC Steel stands alone as a premier fabricator in the industry.
IN THE FIELDATEC construction services remain unmatched in jobsite safety and quality assurance. Our professional project managers and field supervisors ensure that we respond quickly and precisely to customer requests. Our experience level allows us to expedite project changes and maintain project schedules without delays. We are a “golden rule” customer service company.
At ATEC Steel, we build precision in theshop and excellence in the field: • Unmatched API Tank Construction • Pressure Vessels, Columns & Stacks • Specialty Steel Fabrication • Dry Bulk Silos & Hoppers • Liquid Storage Terminals • Tank Field Construction • Tank Inspection, Maintenance & Repair
tank terminal update
TANK STORAGE • September/October 2014 41
Location BurmaProducts OilConstruction / expansion / Construction of an oil storage acquisition facility with tanks and terminal on
a 24-acre plot at Thilawa Deep Sea port under a Build-Operate-Transfer (BOT) agreement authorised by the transportation ministry and Myanmar Ports Authority
Project start date February 2014 (announced)
Denko Trading
Location Pipavav Port, Gujarat, IndiaProducts Bulk liquid/bulk gas (LPG)Capacity 70,120klConstruction / expansion / Over half of the first phase is now acquisition operational with a storage capacity
totalling 70,120kl. Once complete, the facility will consist of a bulk liquid terminal with 31 tanks totalling 120,000kl and a 2,700 tonne bulk gas terminal with LPG handling capacity of 100,000 tonnes
Completion date Phase one of the project – initiated in February 2013 – was scheduled for commissioning in the second half of 2015. However, this has been brought forward by six months
Comment Once complete, the new capacity will bring Aegis’ total liquid handling capability to between 3-4 million tonnes
Aegis Group
Location Una, Himachel Pradesh, IndiaProducts OilConstruction / expansion / Construction of a storage acquisition depot besides a Canteen
Stores Department (CSD) to facilitate army personnel
Project start date November 2013 (announced)Investment Rs450 crore (€5.3 million)Comment The project also aims to solve
flood problems that occur during Una’s rainy season
Indian Oil
Location Jawaharlal Port, Maharashtra, IndiaProducts Bulk liquidsCapacity 15 million tonnes a yearConstruction / expansion / Construction of a new acquisition liquids terminal, including
a tank farm spread over 70 hectares and a liquid jetty
Project start date August 2013 (announced)Investment Rs 1,800 crore (€20.5 million)
Jawaharlal Nehru Port Trust
Location Chaozhou Port, Guangdong province, China
Products Refined oil products including petrol, diesel and jet fuel
Capacity The tanks will have a combined storage capacity of 295,000m3 and the facility will have an annual handling capacity of 3 million tonnes
Construction / expansion / CCCC will be responsible for the acquisition initial design of the terminal, in
addition to construction drawing design and corresponding surveys, and has signed a contract with Yihua Petrochemical for a survey and design on the new facility
Project start date December 2013 (announced)Investment RMB400 million (€48.4 million)Comment The project also features two
berths, one 50,000 tonnes and another 2,000 tonnes
CCCC Second Harbor Engineering
Location Laotangshan port zone, Zhoushan Island, Zhejiang Province, China
Products Crude oilCapacity 18 million tonnesConstruction / expansion / Construction of one 450,000 acquisition tonne crude oil terminal
and supporting facilitiesProject start date Mid-2014Completion date Second half of 2016Investment RMB328.4 million (€39 million)Comment It is believed another 15 million
tonnes of crude oil import capacity will be added when the project is fully completed
Zhoushan Shihua Crude Oil Terminal
Location Rizhao Port, ChinaProducts OilConstruction / expansion / Construction of oil storage facilities acquisitionProject start date July 2014 (announced)Investment RMB700 million (€85.9 million)
CEFC International/Rizhao Port Group
TANK TERMINAL UPDATE – ASIA
Location Sambu, IndonesiaProducts Marine fuel oilCapacity 300,000klConstruction / expansion / Expansion of the company’s acquisition marine fuel oil terminal by 90,000klProject start date February 2014Completion date First phase upgrades are scheduled
to be completed by 2016, and later phases are expected to increase the company’s total storage capacity to 835,000 kilolitres
Investment First phase – $94.8 million (€69.3 million)
Comment As well as capacity increase, Pertamina is upgrading its dock capacity to accommodate ships of 100,000 tonnes, compared with a current maximum of 40,000 tonnes.
The terminal will also be equipped with an automation system similar to those used in Singapore, as well as a diesel fuel and MFO blending facility
Pertamina
ATEC STEEL – AN INDUSTRY LEADER IN FIELD-WELD, SHOP-WELD, SPECIALTY STEEL FABRICATION & FIELD CONSTRUCTION SERVICES!
Power Industry
#1 in Steel Tank Fabrication & Construction!Inquiry: [email protected] www.atecsteel.com Phone: 877.457.5352
Get Connected with the Unmatched Performance of ATEC Steel... The Industry Leaders in Field-Weld Tank & Specialty Steel Construction!
At ATEC Steel, it all starts with the right support team. All of our employees have extensive backgrounds in storage tank fabrication, specialty steel fabrication and field construction services.
IN THE SHOP ATEC manufacturing processes set the benchmark for the highest quality steel fabrication available. With over 100,000 square feet of fabrication space, state-of-the-art fabrication equipment, documented quality control procedures, economies of scale processes and precision manufacturing standards, ATEC Steel stands alone as a premier fabricator in the industry.
IN THE FIELDATEC construction services remain unmatched in jobsite safety and quality assurance. Our professional project managers and field supervisors ensure that we respond quickly and precisely to customer requests. Our experience level allows us to expedite project changes and maintain project schedules without delays. We are a “golden rule” customer service company.
At ATEC Steel, we build precision in theshop and excellence in the field: • Unmatched API Tank Construction • Pressure Vessels, Columns & Stacks • Specialty Steel Fabrication • Dry Bulk Silos & Hoppers • Liquid Storage Terminals • Tank Field Construction • Tank Inspection, Maintenance & Repair
tank terminal update
42 September/October 2014 • TANK STORAGE
Location Gresik Port, East Java, IndonesiaProducts Bulk liquidsCapacity 500,000 tonnes a yearConstruction / expansion / Construction of a bulk acquisition liquid storage areaProject start date Announced November 2013Investment IDR 141.7 billion (€9.1 million)
PT Pelabuhan Indonesia
Location Soma Port, Fukushima Prefecture, Japan
Products Liquefied natural gas (LNG)Construction / expansion / Construction of a new storage acquisition terminal in an area that was
severely damaged in the 2011 earthquake and tsunami
Project start date 2014Completion date 2017Investment 60 billion yen ($587 million)Comment A 40km pipeline linking the new
storage facilities with Natori, Miyagi Prefecture will also be constructed
Japan Petroleum Exploration
Location Mariveles, Bataan, the PhilippinesProducts Unleaded petrol, automotive diesel,
industrial fuel oil and ethanolCapacity 70 million litresConstruction / expansion / Construction passed the 50% acquisition milestone earlier in JuneCompletion date Due to begin operations
in October 2014Investment P1 billion (€16,787,014)
Jetti Petroleum
Location Pulau Busing, SingaporeProducts Fuel oil and ‘dirty’ products,
clean oil products, chemicalsCapacity 2 million m3
Construction / expansion / 800,000m3 capacity expansion to acquisition the terminal’s existing 1.2 million m3
Completion date 2014 (brought forward form initial date of Q1 2015)
Comment According to reports, Shell Singapore has committed to taking around 530,000m3 of tank space for fuel oil and ‘dirty’ products, Total Singapore 150,000m3 for similar products, and the remaining 120,000m3 could be set aside either for clean oil products or chemicals
Tankstore Singapore
Location Southern Mindanao, the PhilippinesProducts OilCapacity 41 million litresCompletion date Opened in March 2014 Investment P500 million (€8 million)Comment Seaoil operates 10 oil depots
and terminals in the Philippines, with a combined storage capacity of 160 million litres
Seaoil Philippines
Location Jurong Island, SingaporeProducts LNGCapacity 6 million tonnes a yearConstruction / expansion / Construction of a third storage acquisition tank at the terminal, plus
additional regasification facilitiesProject start date The Singapore LNG terminal
commenced operations in May 2013 with two LNG storage tanks and a regasification capacity of 3.5 million tonnes per year
Completion date A fourth tank will be added by 2017, increasing capacity to 9 million tonnes
Singapore LNG
This list is based on information made available to Tank Storage magazine at the time of printing. If you would like to update the list with any additional terminal information for future issues, please email [email protected]
Company SungUn Tank TerminalLocation Ulsan, South KoreaProducts Petrochemical and
petroleum productsConstruction / expansion / Construction of a new tank terminalacquisitionProject start date July 2013Completion date July 2014Comment The terminal includes 11 large-
and small-sized storage tanks. SungUn has laid a 2.5km pipeline
between the terminal and Ulsan’s new port to facilitate transfer of products from oil tankers to the terminal and also plans to set up a real-time system for monitoring the process
SungUn Tank Terminal
Location Ulsan Port, South KoreaProducts OilCapacity 28.4 million barrelsConstruction / expansion / Construction of a new acquisition terminal at the portCompletion date Phase one is expected to be
operating by 2017. Known as the North Port, its capacity of 9.9 million barrels on an area of 295,000m2, will mostly be used to store oil products
The second phase, or the South Port, will focus on crude oil and is expected to have a capacity of 18.5 million barrels on an area of 604,000m2
Investment First phase – 622.2 billion won (€427 million)
For the second phase, the country’s energy ministry aims to invest 994.8 billion won by 2020 and set up a separate joint venture
Korea National Oil, Vopak Group and S-Oil Corp
page header
TANK STORAGE • September/October 2014 43
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page header
44 September/October 2014 • TANK STORAGE www.ljtechnologies.com
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Australia ups storage capacity in the wake of refinery closures
The new Pelican Point storage
facility was opened on 30
April 2014 at Port Adelaide.
It represents a 50% increase
in the storage capacity of
South Australia. The terminal
is owned and currently
operated by Terminals Pty
and leased to Caltex.
The facilities provide fuel
to industry and local service
stations and serves Australia’s
growing transport, agricultural
and mining fuel needs. It is
the first large, modern, multi-
product terminal built since the
Vopak Darwin terminal in 2005.
Terminals Pty, Caltex and
Flinders Ports have jointly
invested AU$100 million
(€70 million) in the project.
Aurecon undertook the
design of the facilities.
Structural changes to Australia’s fuel supply chain
Australia is going through
some major structural changes
in its supply chain, including
the closure of a number of its
refineries. The refineries are
closing for four main reasons:
1. Economies of scale.
Relative to the rest of
the world, Australia
refineries are small and
therefore less efficient.
2. Many Australian refineries
were built in the 1950s and
1960s and are unable to
process heavier imported
crudes without further
significant investment.
3. Operating and engineering
labour costs in Australia
are higher than refining
competitors in Asia
4. The emergence of huge
refineries in the Asia-Pacific
region, notably Singapore,
India and the Middle East.
A single refinery in India is
big enough to produce
double the output of all
Australia’s refineries.
Closures include: Exxon
Mobil’s Port Stanvac refinery
(Adelaide, mothballed in
2003); Shell’s Clyde refinery
(Sydney, refining operations
ceased in 2012); Caltex’s
Kurnell (Sydney), which will
close by end 2014; and BP’s
announcement to close Bulwer
Island (Brisbane) mid-2015.
The remaining refineries
are BP’s Kwinana (Western
Australia); Shell’s Geelong,
which recently sold to Vitol
of Switzerland; Caltex’s
Lytton (Melbourne); and
Exxon-Mobil’s Altona.
The closure of refineries
is turning the nation into
one of Asia’s larger fuel
importers. As the demand
for increased importation
of fuels grows, ongoing
investment in petroleum import
infrastructure, particularly bulk
fuel terminal infrastructure,
becomes more important in
ensuring supply security.
Creating a reliable South Australia fuel supply
With the closure of Exxon
Mobil’s Port Stanvac refinery
in Adelaide, about 95%
of South Australia’s fuel is
now supplied by tankship
though Port Adelaide, from
local and overseas refineries
mainly from imports of refined
products from Singapore.
However, supply to the
existing fuel terminals in
Adelaide had been mainly
by pipeline from the refinery.
These terminals therefore do
not have the storage volumes
or berths required for supply
by large fully laden tankships.
This meant that the existing
fuel supply infrastructure
was, for the most part,
inefficient and unreliable.
Tankship berths for the
existing terminals were in Port
Adelaide. Draft restrictions
meant supply could only be by
smaller, partly laden tankships.
Supply to the new terminal is
from a deeper berth at the
Outer Harbor, allowing fully
loaded tankships of 86,000
plus deadweight tonnes.
The new terminal can
store 85 million litres of fuel, in
eight vertical storage tanks
for diesel, three grades of
motor spirits and biodiesel. The
new site has plenty of room
for expansion, with the first
stage expansion plan being
to add 50 million litres of diesel
storage, and convert two of
the existing tanks to jet storage.
The increased storage
has assisted the community
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46 September/October 2014 • TANK STORAGE
by increasing Caltex’s fuel
reserves above its safety stock
in Adelaide from five days to
32 days when the facility is full.
On the decision for
the new location, national
planning and optimisation
manager for Caltex Terminals,
Paul O’Loughlin, says: ‘With
increased storage capacity
and the supply chain now
open to deeper berthing
facilities, constraints that
contributed to fuel shortages
across Adelaide and South
Australia over recent years
have been eliminated
and the fuel reliability into
the state improved.’
The Outer Harbor location
also removes the facility from
the suburbs to an industrial
precinct, thereby reducing
risks to the community.
The new terminal has
facilities to load out to road
tankwagons in three bays,
with plans to add loadout to
rail tankwagons in the future,
and room to add one more
road tankwagon bay.
Increasing efficiencies
The purpose-built import
fuel terminal, at Adelaide’s
Outer Harbor, is markedly
more efficient than Caltex’s
existing Birkenhead terminal
in Port Adelaide. The historic
facility has now received
its last tankship delivery.
Each of the three bays
at the new terminal has
five loading arms, with
each arm able to deliver
at 2,400 litres per minute. To
date this accommodates
about 48 trucks per day,
allowing 63 million litres to be
loaded out in one month.
The terminal is fed via
marine loading arms, and
two 14” wharflines. This allows
tankship delivery at 3 million
litres per hour, thus reducing
tankship turnaround times.
Efficient design
Ensuring supply security
needed an advanced facility
that substantially reduced
the risks to the environment.
The entire project was
designed using different 3D
software modelling packages
for pipework, civil and
structural. These were then
combined in the 3D viewing
package Navisworks, for full
project visualisation and clash
checking. Caltex and Terminals
Pty could use a free copy of
Navisworks to review the design
as it progressed. Navisworks
also allowed for remote client/
designer interaction using
screen sharing software.
Aurecon’s role spanned
detailed design and
documentation of all aspects
of the facility, including
preparation and submission of
the development application
for approval by the authorities,
and the provision of technical
assistance during the 18
month construction and
commissioning period. The
latter allowed Terminals Pty
to fast track the project to
meet the deadline for the
first fuel shipment, received
on 14 February 2014.
By replacing an old
terminal with an ultramodern
facility, which includes features
such as: renewable biofuels
blending, vapour recovery
to convert vapours back
into fuel, foam and spray
cooling fire protection and
secondary containment
using an HDPE liner system,
this project substantially
reduces environmental risk.
In addition to the
environmental protection
and sustainability aspects, the
facility design includes the
following high-tech features:
storm water management
utilising a first flush pit combined
with a Class 1 European oil/
water separator discharging
to a wetland detention
basin; additive injection using
mono block metering; road
tankwagon overfill protection
and vapour recovery; and
site office and control room
with an integrated terminal
automation system.
A fitting partnership
Underpinning the success of
the design and construction
was the basis of design
document for the facility.
Working closely with Terminals
Pty and Caltex, Aurecon
was able to create an
efficient design, using the
latest technology, which
met the stringent standards
required of both parties.
The project team was
responsible for geotechnical,
civil, mechanical, fire
protection and electrical
engineering services.
The use of 3D modelling
worked really well in the
design review process. It drove
efficiencies in stakeholder
engagement; enabling the
sharing of designs across a
far broader audience than
those with the ability to read
and understand information
contained on drawings, and
allowing operators to visualise
what the end product would
look like, rather than seeing a
one dimensional drawing. It
also delivered savings in the
design process, through real
time pickup and rectification
of issues as they arose.
For more information: This article was written by Tim Labett: [email protected]
In attendance at the opening ceremony were V8 Supercar racing car drivers Craig Lowndes and Jamie Whincup
The terminal includes eight tanks storing three grades of motor spirits, diesel and biodiesel
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TANK STORAGE • September/October 2014 47
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