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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 up Storage capacity in Australia is increasing in the wake of refinery closures Expansion in the Far East Topsafe discusses its growth plans in China

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Page 1: 395263 Tank Storage M_selected Pages.1

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

Page 2: 395263 Tank Storage M_selected Pages.1

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© 2014 Honeywell International Inc. All rights reserved

MSC-L 297 x 420mm.indd 1 27/02/2014 13:19

Page 3: 395263 Tank Storage M_selected Pages.1

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

Page 4: 395263 Tank Storage M_selected Pages.1

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

Page 5: 395263 Tank Storage M_selected Pages.1

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?

Page 6: 395263 Tank Storage M_selected Pages.1

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).

Page 7: 395263 Tank Storage M_selected Pages.1

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

Page 8: 395263 Tank Storage M_selected Pages.1

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

Page 9: 395263 Tank Storage M_selected Pages.1

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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Page 10: 395263 Tank Storage M_selected Pages.1

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

InConInspectionConsultants

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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

Page 11: 395263 Tank Storage M_selected Pages.1

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

Page 12: 395263 Tank Storage M_selected Pages.1

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.

Page 13: 395263 Tank Storage M_selected Pages.1

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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12 September/October 2014 • TANK STORAGE

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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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Page 17: 395263 Tank Storage M_selected Pages.1

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

Page 18: 395263 Tank Storage M_selected Pages.1

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

Page 19: 395263 Tank Storage M_selected Pages.1

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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terminal news

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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Page 21: 395263 Tank Storage M_selected Pages.1

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.

Page 22: 395263 Tank Storage M_selected Pages.1

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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Page 23: 395263 Tank Storage M_selected Pages.1

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

Page 24: 395263 Tank Storage M_selected Pages.1

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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Page 25: 395263 Tank Storage M_selected Pages.1

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

Page 26: 395263 Tank Storage M_selected Pages.1

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.

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Page 27: 395263 Tank Storage M_selected Pages.1

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

Page 28: 395263 Tank Storage M_selected Pages.1

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:

http://www.fluidhandlingmag.com/index.php/register

If you would like your company’s name to feature in this please contact [email protected] (+44 (0)20 8687 4126)

Page 29: 395263 Tank Storage M_selected Pages.1

terminal news

TANK STORAGE • September/October 2014 27

Page 30: 395263 Tank Storage M_selected Pages.1

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

Page 31: 395263 Tank Storage M_selected Pages.1

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

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6  Ap

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7  Nov

2007

 Ju

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8  Ja

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ar20

10  

Oct20

10  

May

2011

 De

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1  Ju

l201

2  Fe

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3  Se

p201

3  Ap

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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

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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

Page 33: 395263 Tank Storage M_selected Pages.1

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 34: 395263 Tank Storage M_selected Pages.1

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

Page 35: 395263 Tank Storage M_selected Pages.1

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

Page 36: 395263 Tank Storage M_selected Pages.1

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

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Page 37: 395263 Tank Storage M_selected Pages.1

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TANK STORAGE • September/October 2014 35

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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

Page 39: 395263 Tank Storage M_selected Pages.1

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

Page 40: 395263 Tank Storage M_selected Pages.1

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

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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 42: 395263 Tank Storage M_selected Pages.1

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

Page 43: 395263 Tank Storage M_selected Pages.1

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

Page 44: 395263 Tank Storage M_selected Pages.1

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

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TANK STORAGE • September/October 2014 43

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TANK STORAGE • September/October 2014 45

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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profile

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

Page 49: 395263 Tank Storage M_selected Pages.1

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TANK STORAGE • September/October 2014 47

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