Tank Storage Magazine

Regional focus: tank storage in asia

Oiltanking keeps on growing

Breaking ground in the literal sense

decembeR 2012

The companys senior management talks us through the latest acquisition of Helios terminal in singapore

With the Jurong Rock cavern operatorship still scheduled to begin next year, JTc discusses the project so far

The voice of the storage terminal industry

Volume no. 8 issue no. 5

TANK STORAGE December 2012 1

As 2013 rapidly approaches, we thought

wed get in early by launching a new

look for Tank Storage magazine.

Despite difficult economic conditions around the world, were celebrating

here after being granted our first ever full audit circulation certificate.

This Business Publications Audit now means we have concrete proof showing how many copies of the magazine are printed, where it is distributed and the fact that over half of our readers have requested their copy.

You might ask why we havent done this earlier, having been around for eight years, and the answer is: it hasnt really been necessary.

Being a small team were very trustworthy and transparent, well-known in the sector and people

are comfortable we do what we say we do. But, in difficult economic times, everyone

is cutting costs and people start worrying

theyre not getting what they pay for. Now

theres one less thing to worry about.

And with a new approach we thought wed

bring in a new look. Tank storage is generally

thought of as being a stable, reliable sector,

but that doesnt have to equal boring. Were hoping to bring a slightly more light-hearted approach to the magazine in an attempt to make work a little more interesting.

This comes with increasing the magazine to six times a year from the previous five, in a direct response to reader demand.We hope you like our new look and, as always, welcome your suggestions on further improvements.

Best wishes,

Margaret

A new look for a new year

comment

Margaret DunnAssociate publisher

contents

December 2012

Volume 8 iSSuE 5

Horseshoe Media LtdMarshall House124 Middleton Road,Morden,Surrey SM4 6RW, UKwww.tankstoragemag.com

mANAGING DIrecTorPeter PattersonTel: +44(0)20 8648 [email protected]

AssocIATe publIsher & eDITorMargaret DunnTel: +44 (0)20 8687 [email protected]

DepuTy eDITorJames BarrettTel: +44 (0)20 8687 [email protected]

AssIsTANT eDITorKeeley DowneyTel: +44 (0)20 8687 [email protected]

ADVerTIsING sAles mANAGerDavid KellyTel: +44 (0)203 551 [email protected]

souTh AmerIcAN sAles represeNTATIVeRoberto Bieler+55 21 3268 2553+55 21 9465 [email protected]

proDucTIoNAlison BalmerTel: +44 (0)1673 [email protected]

subscrIpTIoN rATesA one-year, 6-issue subscription costs 150 (approximately $240/185 depending on daily exchange rates). Individual back issues can be purchased at a cost of 30 each

Contact: Lisa LeeTel: +44 (0)20 8687 4160Fax: +44 (0)20 8687 [email protected]

No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Tank Storage are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher.

ISSN 1750-841X

contentsnews1 comment

2 contents

4 Terminal news

31 Technical news

44 Incident update

47 regulations

56oiltanking keeps on growingOpportunities in the oil storage market dont come up every day, so when they do we grab them with both hands, both Oiltanking Asia Pacifics president and VP for business development explain

81From the track to the tank

2 December 2012 TANK STORAGE

contents

TANK STORAGE December 2012 3

contents

features53 Tighter controls on chemicals increases

compliance challenges

58 Tank terminal update Asia

71 big plans, but what is the reality?

75 state-run companies look to the independents for storage needs

84 Tank storage Asia exhibitor preview: celebrating its fourth year in singapore

92 making insulation a long-term investment

95 looking to the future More than 900 attendees, 285 companies, 186

first time visitors and 80 countries represented made it the biggest EMEA HUG ever

98 palm oil lining solutions

101 layered protection Critical safety functions, such as emergency

shutdowns, need to be kept separate from generic IT solutions to ensure efficient, fail-safe operations

104 Germany: know whats changed A summary for those that missed the 8th

Conference on Flat Bottom Tanks in Munich

106 A problem shared: TsA review

108 events page Ad index

78Jurong Island: breaking ground in the literal senseWith space already tight on Jurong Island, terminal operators are eagerly awaiting news on the regions space saving initiatives. Tank Storage magazine talks to JTC to find out the latest on its underground rock caverns

Front cover courtesy of Rosemount Tank Gauging

65china on the rise

49marine terminals: the next step in standards & safety

reGIoNAl Focus: TANK SToRAGE IN ASIA

Oiltanking keeps on growing

Breaking ground in the literal sense

December 2012

The companys senior management talks us through the latest acquisition of helios terminal in singapore

With the Jurong rock cavern operatorship still scheduled to begin next year, JTc discusses the project so far

The voice of the storage terminal industry

Volume No. 8 Issue No. 5

terminal news

4 December2012TANK STORAGE

URT acquires 5m barrel storage terminal from Phillips 66

Arc Terminals and CN partner to build rail terminal in Alabama

United Riverhead Terminal

(URT), an affiliate of Pennsylvanian United Refining Company, has completed

its acquisition of downstream

energy company Phillips

66s Riverhead Long Island

bulk storage terminal and

associated assets.

The Long Island, New

York-based terminal is

spread across 280 acres and

features 20 storage tanks

with a total capacity of 5

million barrels for petroleum

products such as crude, heavy

fuels, diesel and petrol.

The facility also features

a truck transfer rack and an

offshore barge/ship platform

which is the only deepwater

loading/unloading platform

on the US East Coast.

The terminal itself is well

located strategically; access

to low-cost and reliable

marine transportation is vital

to the competitiveness of its

customers in petroleum and

petrochemical operations.

Riverhead allows access to

high capacity deepwater

marine facilities that will give

them a cost advantage

over other locations, John

Catsimatidis, chairman and

CEO of Red Apple Group,

which includes the buyer,

said in a statement. We will

be able to provide storage

and terminalling services to

a wide variety of customers

throughout the world.

The sale of the Riverhead

Terminal is part of Phillips 66s

on-going strategy to divest

assets that do not fit with our long-term business objective,

explains Tim Taylor, executive

VP of commercial, marketing,

transportation and business

development for Phillips 66.

The terms of the agreement

were not disclosed. Moelis &

Company served as advisor

to URT, while Bank of America

Merrill advised Phillips 66

throughout the transaction.

Independent terminal

company Arc Terminals and

CN have joined forces to

build a rail tank car unloading

terminal in Mobile, Alabama

that will handle Western

Canadian heavy and Bakken

light crude oil destined for

refineries on the Gulf Coast.The terminal is expected

to come online by June next

year. It will eventually be

able to handle 120 tank cars

per day, or 75,000 barrels

of crude oil, but will have

an initial volume of 40 tank

cars of crude oil per day.

The terminal will be able

to receive both general

purpose and insulated

coiled cars. Many similar

facilities can handle only

general purpose tank cars.

The Mobile facility the

first rail tank car crude oil unloading terminal in Alabama

will provide good access

to Gulf Coast refineries and allow quick turnaround of

tank cars, increasing product

delivery and fleet velocity

and reducing costs for car

owners, John Blanchard,

president of Arc Terminals,

said in a statement.

The rail transload terminal

will handle heavy crude oil

from Western Canada and

light crude oil from the Bakken

basic via CN, which will

provide Canadian producers

single-haul service to our

Mobile destination. A single-line

haul is more efficient and less expensive than those involving

two or more rail carriers and

multiple terminal switching.

A new pipeline will also

be built to connect the new

rail transloading facility to

Arc Terminals Blackley tank

farm. From Arc Terminals

facility crude oil can then

be delivered to Gulf Coast-

based customers via

pipeline, or by vessel as far

as Corpus Christi, Texas.

The Blakeley terminal has

a storage capacity of 700,000

barrels of crude, fuel oil and

asphalt. Terminal capacity

should be expanded to more

than 1 million barrels to meet

potential future demand.

Phillips 66 is divesting assets that are not part of its future business

The terminal will handle heavy and Bakken light crude oil

TANK STORAGE December2012 5

terminal news

New Vitol storage farm gathers pace in Cyprus Energy trader Vitol is to complete

construction of an extensive storage tank

farm in Cyprus by the end of 2014.

The 300 million project in the Vassiliko

area of Cyprus will create terminal storage

capacity of 643,000m3 for the likes of

petrol, diesel, jet fuel, gasoil and MTBE.

VTTV, a 50/50 venture between Vitol and

Malaysian shipping company MISC, began

construction work on the island in early 2011.

New proposals for Colorado fuel facility A new bulk propane fuel storage facility

has been proposed in Colorado, US.

The plans for the Colorado Propane

Supply Distribution Facility would see 48

bulk propane storage tanks, which would

store 30,000 gallons of each, provide a total

storage capacity of 1.44 million gallons.

The earmarked site is located on the

Colorado 120 route and the 35-acre site once

housed a Domtar gypsum plant. Any new

facility would generate up to seven local jobs.

Kuwait takes delivery of new storage tanks Global logistics company Rickmers Linie has

completed the transportation of three LPG

storage tanks from Malaysia to Kuwait.

The tanks, which each weighed 475

tonnes, were destined for the new Kuwait

Oil Tanker Company LPG filling station at Umm Al-Aish. The new plant will be built

on an area of 150,000m2 and provide 15

million cylinders of gas every year.

The storage tanks were constructed by KNM

Process System, part of the global KNM Group.

New storage terminals set for Costa Rica Costa Rica-based Terminal de Graneles Mon

(TGM) is to build a terminal for the purpose

of receiving, storing and dispensing liquids.

The project has an investment of around $5 million (3.8 million) to provide storage tanks and reception services at the port and for product shipping.

The project will be developed by TGM advisors German Moreno and Rodolfo Blasio, with investment by the PASQUI Group, and is set to measure 20,000m2 located between the Qumicos Holanda facilities and terminals belonging to Transmerquim and the former Exxon in Moin, Limon.

news in brief...Inergy to acquire Rangeland Energy for $425m

GT opens OmniPort terminal

Phase I of ECHO terminal operational

Texas-headquartered midstream energy

company Rangeland Energy has

entered into a definitive agreement to sell the company to Inergy Midstream,

an energy storage and transportation

company headquartered in Kansas,

Missouri, for $425 million (332 million).

Expected to close at the beginning

of December, the transaction will

see Rangelands management

continue with midstream development

opportunities across North America

under the existing company name.

Rangeland owns and operates

North Dakotas largest open-access

crude oil distribution hub the COLT

system. It features a large crude oil rail

loading terminal in the states Williams

County and related storage and

pipeline infrastructure. The hub serves

oil refiners, marketers and producers, and has contracted aggregate

volume commitments of approximately

150,000 barrels of crude per day.

COLT is well positioned to be

the premier crude oil terminal in

the Bakken, comments Rangeland

CEO Chris Keene. Through this

on-going relationship, we are well

positioned and funded to continue

developing and growing its business

in other emerging regions.

Inergy chairman and CEO John

Sherman says: The COLT assets provide

Inergy with a solid position in this prolific region and are a great complement

to our existing midstream operations.

Citi served as Rangelands financial advisor for the transaction, with Jones

Day providing legal counsel.

GT Logistics has officially opened its new $95 million (74 million) GT

OmniPort terminal in Texas, US.

Built on 100 acres of land at

Port Arthur, the terminal can now

receive crude oil transported via

truck, rail, ship and barge and is able

to facilitate up to 250 rail cars.

GT Logistics has broken ground

on the second phase of the project,

which includes rail storage capacity

on 300 acres. The rail storage terminal

will be able to handle, switch and

transload more than 1,000 railcars

when construction is finalised.Once fully operational, the terminal

will create up to 45 new jobs, Beau

Maida, director of rail operations for GTL

affiliate GT Rail, was quoted as saying.The opening of the GT OmniPort

rail terminal offers rail users a significant opportunity to improve operating

efficiencies in the Golden Triangle region as our location, ability to

provide onsite locomotive power,

use of AEI tag readers for inventory

reporting, staff of experienced and

certified rail professionals and access to excellent rail service with available

main line switching frequency seven

days a week will ensure customers

safe and efficient service.

Phase I of Enterprise Products Partners Enterprise Crude Houston (ECHO) storage terminal in Harris County, Texas is complete.

This initial stage includes three storage tanks with a total 750,000 barrels storage capacity and the facility is now receiving deliveries of crude oil.

Phase II of the project will see the construction of an additional 900,000 barrels of storage. Enterprise says this phase could be operational by the beginning of 2014. It also estimates that the ECHO facility could have up to 6 million barrels of crude oil storage capacity when completed.

AJ Teague, executive VP and COO of Enterprises general partner, says: Enterprises ECHO facility is at the centre of a historic and fundamental shift in our nations crude oil infrastructure by linking growing supplies of North American crude and condensate production with the US Gulf Coast refining complex. Ultimately, ECHO will provide pipeline and waterborne access to every major Gulf Coast refinery, representing more than 7 million barrels per day of capacity.


terminal news

terminal news


Greenergy has announced

plans to penetrate the

fuel industry in Canada.

From the second quarter

of next year, the UK-based

supplier of petrol and

diesel will begin supplying

fossil and biofuels to

south western Ontario.

Greenergys first supply location in Canada will be

Vopaks Hamilton terminal.

From here it will supply

E10 petrol, ethanol and

ULSD. A number of terminal

improvements are to be made

to the site before Greenergy

begins supplying E10 in 2013.

In the UK, Greenergy

has achieved long-term

growth by delivering what

every customer ultimately

wants lowest priced fuel

combined with the highest

levels of customer service,

supply resilience, operational

efficiency and sustainability.

We intend to replicate that

strategy in Canada, Paul

Bateson, COO of Greenergys

international operations

and director of Greenergy

Fuels Canada, says.

Greenergy currently

supplies over 25% of the

UKs road fuel market. In a

statement, the company said

it is now looking to expand

internationally and build

on its existing operations

in the UK, US and Brazil.

The company intends

to expand to other supply

locations in Canada

in due course.

Greenergy expands fuel supply business into Canada

Greenergy will supply fossil and biofuels to Canada by Q2 2013

terminal news


TransCanada and Phoenix join forces for pipeline

Enbridge to transfer crude oil storage assets for over $1bn

TransCanada and Phoenix

Energy Holdings are to

develop the Grand Rapids

Pipeline in Northern Alberta,

Canada after entering into

binding agreements.

Costing $3 billion (2.3

billion) to build and stretching

50km, the pipeline will be

able to transport up to

900,000 barrels a day of

crude oil and 330,000 barrels

a day of diluent between

Fort McMurray and the

Edmonton/Heartland region.

Under the agreement,

each company will

own 50% of the project,

which is expected to

be operational by the

beginning of 2017 subject

to regulatory approvals.

The investment will be spent

between 2014 and 2017.

TransCanada will operate

the system and Phoenix

has entered a long-term

commitment to ship crude

oil and diluent on it.

As Alberta crude oil

production continues to

grow, its critical to have

the infrastructure in place

to move oil to market from

emerging developments west

of the Athabasca River. This is

the first major pipeline project to meet the needs of this fast

growing area, Russ Girling,

TransCanadas president and

CEO, said in a statement.

We are pleased Phoenix

is joining us on the Grand

Rapids Pipeline project to

transport this growing, long-

term supply of Canadian

crude oil in a manner that

respects the communities and

environment where the

pipeline will operate.

Phoenix president

and CEO Zhiming Li

said transportation

in the Athabasca

region has become

bottlenecked and

recognised that

the venture with

TransCanada is crucial

to implement our

development strategy.

The project will

be built, owned and

operated by the

Grand Rapids Pipeline

partnership, which

is jointly owned by

Phoenix and a wholly

owned subsidiary

of TransCanada.

TransCanada expects

to apply for regulatory

approval for the

project next year.

Energy company Enbridge has entered

into an agreement that will see it

transfer a group of crude oil storage,

wind power and solar power assets at

a price of $1.164 billion (900 million)

to the Enbridge Income Fund (ENF).

Enbridge Income Fund Holdings

public shareholders will have the chance

to approve the transfer at a meeting on 7

December 2012 and its closure is subject

to the completion of a $222 million

subscription receipt public offering by ENF.

Enbridge will receive cash proceeds

from the transaction of $222 million and

an additional $582 million in the form

of term debt of the fund. The fund is

expected to repay to Enbridge through

issuance of public term debt. Enbridge will

also subscribe for $305 million of additional

Enbridge Commercial Trust (ECT)

preferred units and $55 million in common

shares of ENF on a private placement

basis at the same price per security

as the subscription receipt offering,

maintaining its interest in ENF at 19.9%.

We are pleased to be moving

forward with this second billion dollar

plus drop down to the Enbridge Income

Fund, consistent with the sponsored

vehicle drop down strategy outlined

at our recent Enbridge Day investor

conference, J Richard Bird, executive

VP, CFO and corporate development

at Enbridge, said in a statement.

The drop down will enhance the

distributable cash flow of the fund and ENF, benefitting both the public investors in ENF, as well as Enbridge through our

19.9% interest in ENF. The transaction

will provide $88 million of net funding

for our large growth capital investment

programme, including further front

end bolstering of our equity base. This

funding strategy is modestly accretive

to Enbridges earning per share in

the near term compared to issuing

Enbridge common shares, and more

accretive over the medium term.

TransCanada will build the pipeline and Phoenix will use it to transport crude oil

Titan reveals enhanced agreement with Guangdong Zhenrong Oil logistic and marine services

provider Titan Petrochemicals

Group revealed in September

it entered into a supplemental

agreement with energy

trading company Guangdong

Zhenrong Energy that

has enhanced its initial

subscription agreement

announced in August.

Under the new agreement,

Guangdong Zhenrong could

invest HK$928.2 million (92.6

million), instead of the initial

HK$175 million for 90% shares

in Titan agreed in the original

terms, and restructure all debt.

A Guangdong Zhenrong

Energy spokesperson says:

The increased offer and

improved debt restructuring

proposal underscore our

total commitment to

investing in Titan. At this

stage our immediate focus

is on supporting a creditors

restructuring and ensuring a

favourable resolution of the

key outstanding litigation

against Titan, and to fully

support Titans development.

In addition, Guangdong

would subscribe to

3,461,093,248 Preferred Share

A for a total consideration of

HK$538.2 million (HK$0.1555/

Preferred Share A) instead of

subscribing for 7 billion new

Adjusted Shares for a total

price of HK$175 million.

Guangdong agreed to

provide an equity line of

up to HK$390 million by the

subscription of a maximum

780 million Preferred Shares

B at HK$0.50 per Preferred

Share B, in tranches of

HK$10 million each, during a

period of five years from the completion of the subscription.

Patrick Wong Siu

Hung, executive director

of Titan, says: The new

board has made significant process over the past

three months. It received

Guangdong Zhenrongs

intention to restructure

Titans debt and take over

the company in July and

concluded the subscription

agreement with Gunagdong

Zhenrong in August.

Subsequently, it gained

approval from Guangdong

Zhenrongs shareholders for

its plans for Titan. In addition,

Guangdong Zhenrong made a

further move by acquiring Tsoi

Tin Chuns remaining 45.47%

stake in Titan to become its

single largest shareholder.

We believe the supplemental

agreement is by far and away

the most compelling option

of all those that have been

disclosed for Titan creditors

and shareholders.

Guangdong Zhenrong is Titans largest shareholder

terminal news


terminal news


Singapore LNG announces new storage tankSingapore LNG is to develop a

fourth storage tank at its new

liquefied natural gas (LNG) terminal on Jurong Island.

The new S$500 million

(319 million) tank, slated

for completion by 2017,

will increase the terminals

storage capacity to 9

million tonnes a year.

Phase 1 of the Jurong Island

terminal will come online next

year when the construction

of two LNG storage tanks with

a total capacity of 3.5 million

tonnes is complete. A third

LNG storage tank is expected

to come online later in 2013

and will boost capacity to

6 million tonnes per year.

The terminal, designed

to feature a maximum of six

storage tanks, will enable

Singapore to import LNG from

around the world. Singapore

LNG says a fifth tank could be developed in the future,

or even a second terminal.

The project was unveiled

on 24 October at the

Gas Asia Summit, by Mr S

Iswaran, second minster

for Trade and Industry.

Puma Energy and Medco Energi sign agreementIn Indonesia, midstream and

downstream energy company Puma

Energy is to buy a 63.88% stake in PT

Medco Sarana Kalibaru, a subsidiary

of PT Medco Energi Internasional.

The two companies announced

their strategic alliance in October.

The agreement includes a 22,700m3

fuel storage terminal in Tanjung Priok

International Port, North Jakarta and a

dedicated jetty and truck loading bays.

The agreement is expected to

close at the beginning of December,

subject to regulatory approvals. The

new venture will be called PT Puma

Medco Petroleum and will continue to

supply fuel products such as High Speed

Diesel to clients across Indonesia.

Lukman Mahfoedz, president director

and CEO of MedcoEnergi, says: We

have entered into this strategic alliance

designed to bring together strengths

and expertise of both companies

to create the best fuel trading and

distribution business in Indonesia and

the surrounding region for the benefit of our customers, employees and

other stakeholders in the country.

Singapore LNG is adding to its terminal on Jurong Island with a fourth storage tank

Sinopec develops new $850m project in Indonesia AsiaslargestrefinerSinopecisdevelopingan oil storage terminal that will become the largest in Southeast Asia.

To be built on 360 hectares in Indonesias Batam Free Trade Zone, the $850million(660million)PTWestPointTerminalwillbeSinopecsfirstfacilityofsuchsizelocatedclosetoAsiasoiltradinghubSingapore.Thefacilitywillhaveacapacityof16millionbarrelsfor

thestorageofcrudeandrefinedfuels.Sinopec Kantons Holdings will hold a

95%shareintheterminal,whichisexpectedto take between 18 months and two years tocomplete.ThePresidentofIndonesia,Susilo Bambang Yudhoyono, is expected to attend the ground breaking ceremony scheduledfor10October,Reutersreported.

Arefineryandpetrochemicalfacilitycould be built in a second phase.

Armada plans 1.5million m3 storage facility in Malaysia Armada Sdn Bhd is developing a

new oil and gas storage facility

and refinery in Malaysia. Costing RM8.5 billion (2 billion),

the Sabah Oil Terminal will be

established in two phases. The first phase will see an investment of RM4.7

billion for the construction of 1.5

million m3 of crude oil storage and

50,000 barrels of crude oil for refinery, related infrastructure, and housing.

Phase II covers the building

of the refinery and other support facilities for an additional RM3.8

billion. No details on project

funding have been revealed.

Armada will break ground on

facility at the beginning of 2013,

with the entire project predicted

to take between four and five years to complete. It will be built

on a 1,000-acre site in Sipitang Oil

and Gas Industries Park, Sabah.

An estimated RM61.13

billion has been invested this

year in developing oil and gas

projects across Malaysia.

terminal news


Buckeye seeks permission to charge market-based rates in NYCBuckeye Pipeline, part ofBuckeyePartnersownerandoperatorofthelargest independent liquid petroleum products pipeline hasfiledanapplicationwith the Federal Energy Regulatory Commission (FERC)seekingpermissionto charge market-based ratesfordeliveriesofrefinedpetroleum products to the New York City market and surrounding areas.

The application comes afteranumberofairlinescomplained that Buckeyes deliveryratestoNewYork were unjust and unreasonable under the Interstate Commerce Act basedonacostcover-recoveryrationale.

ApprovalfromFERCwould allow Buckeye to set its rates based on competitiveforces.

Delta Air Lines, United/Continental Airlines, JetBlue Airways and US Airways allfiledacomplainton20 September, accusing BuckeyeofchargingtoomuchforthedeliveryofproductfromNewJerseytofivedestinationsonits Long Island system, includingdeliveriesofjetfueltotheNewark,LaGuardia and JFK airports.

Buckeye Pipeline believestheNewYorkCityarea market is robust and highlycompetitive,withNewYorkHarboroneoftheworldsmostactiverefinedpetroleumproductsmarkets. The company says that it is appropriate that it be permitted to charge market-basedratesforitsservicesinthisinvestment.


terminal news

Vopak receives multisite ISCC for biofuels storage terminals Vopak has been awarded the first multisite International Sustainability

and Carbon Certification (ISCC) for a number of its storage terminals.

The company certified its first terminal in Rotterdam on 13 December 2011. Rotterdam

is the biofuels hub of Europe, Maurice Houben,

Vopaks sales and marketing manager for

global vegoils and biofuels, explains. Many

traders and blenders ship their biofuels via the

port and were auditing their supply chains,

resulting in audit requests for our terminals.

The multisite certificate applies to five Rotterdam-based terminals, two facilities in

Houston, US and one in Jakarta, Indonesia.

Vopak is already looking to expand on this

and announced it is considering adding

terminals in Hamburg and Barcelona to

the certificate in the next 12 months.The plan is to have a terminal in

Singapore certified by July 2013.The certification is another step to

further enhance our biofuels terminal

network and to remain a reliable partner

for both our local and international ethanol

and biodiesel customers, Vopak says.

The company was guided by

Control Union Certifications. The entire process took about six months.

The time was spent on preparation,

setting-up the internal ISCC team, creating

training documents, incorporating the ISCC

internal audit in the general company audit

approach and executing external audits at the

corporate office and three storage locations.The costs incurred consist of external

auditing and certification costs on top of the man-hours invested to integrate

the certification requirements in Vopaks standard way of working.

In order for biofuels to access the European

markets and count towards the biofuels

blending mandates, specific sustainability requirements must be met by the companies

involved in the biofuel supply chain. Customers

that need ISCC certified storage can use Vopaks terminals without having to worry

it is an automatic confirmation that they operate according to sustainability standards.

Between 5 and 7.5% EBIT share of Vopaks

capacity is used for the storage of biofuels

and vegoils and the company believes

that going forward renewable fuels will

remain part of the transportation mix.

Eight Vopak storage terminals have been ISCC certified

Buckeye to offer crude oil services at Albany storage terminal Buckeye Partners is to offer crude oil

services at its storage terminal in Albany,

New York after forming a long-term

agreement with an Irving Oil subsidiary.

Under the agreement, Buckeye will provide

around 1.8 million barrels of oil storage, off-

loading unit trains and throughput when the

terminal opens by the end of the year.

Buckeye president and CEO Clark

Smith says the offering of services is part

of our strategy to increase and improve

the utilisation of our existing assets.

Buckeye says it will modify the

terminal so that it can handle ethanol in

addition to crude oil, with a total capacity

of over 135,000 barrels per day.

Rail transport has become a critical

component of the logistics chain as

domestic crude oil production has

increased significantly, adds Smith.

terminal news


BP begins Adelaide fuel terminal expansionBP has broken ground on the planned expansionofitsLargsNorthfuelstorageterminal in Adelaide, Australia.

UnderPhaseIofthe$20million(15million)project,BPwillbuilda new 30 million litre storage tank thatwillallowlargervolumesofdiesel to be stored at the site.

Adding to our storage capacity inAdelaidewillallowustofurtheroptimiseshippingoperationsfromourKwinanarefineryinWestern

Australia and capture the opportunities presented in South Australia, says BP AustralasiapresidentPaulWaterman.

BPhasalsoinvested$4milliontoupgradethestorageterminalsfirefightingsystemandinstalledavapourrecoveryunitatthecostof$2million.

Theexpansionoftheterminalwasannounced in April last year and BP has sincebeenfinalisingplans,clearingthesite and undertaking ground works.

The company says it is looking

tospendafurther$20millionattheLargsNorthterminaloverthenextfiveyears.BPsaysthat,subjecttofinalapprovals,thisaddedcapitalinjectionwillimprovereliability,reduceriskandfurtherimproveenvironmentalperformanceatthefacility.

Wealsoplantocontinuetoinvestinourterminalinfrastructuretoreduceriskandensureouroperationsaresafe,reliableandabletomeettheneedsofourcustomers,Watermanadds.

Mercuria and Sinopec Kantons collaborateMercuria Energy Asset Management

(MEAM), a wholly owned subsidiary

of Mercuria Energy Group, and

Sinomart KTS Development, a wholly

owned subsidiary of Sinopec Kantons

Holdings, are to set up a global

bulk liquid storage JV following the

signing of binding agreements.

Under the agreements, Sinomart

will acquire a 50% equity interest in

European bulk liquid storage operator

Vesta Terminals from MEAM. Vesta

Terminals owns around 1.6 million

m3 of petroleum products and

biofuels storage at three terminals

in Antwerp, Flushing and Tallinn.

The transaction is subject to the

completion of certain conditions, after

which Vesta Terminals will continue to

provide storage services to existing

and new third party customers

alongside its new shareholders.

Paul Chivers, Mercurias group

head of corporate development,

attended the signing of the sale

and purchase agreement on 15

October. He says: This transaction

further underlines the significance Mercuria places on our relationships

in China and the close international

co-operation of Mercuria with

the Sinopec Kantons group.

The entry of Sinomart as a

major shareholder in Vesta Terminals

strongly supports Mercurias

strategic plans for the future, and

for Vesta Terminals employees and

customers it represents a strong vote

of confidence in the business.Bank of America Merrill Lynch

was Mercurias financial advisor during the transaction.

terminal news


GulfCoastAsphaltplans oil terminal expansion GulfCoastAsphaltislookingto expand storage at its Alabama, US-based oil terminalby71milliongallons.

The expansion project would see the construction of20newstoragetanksforoilfromCanadasoil-rich tar sands.

AccordingtoGulfCoastAsphalts plans presented to regulatory agencies and

localofficials,theoilwillbeshippedfromCanadaviarailcars and then pumped fromanunloadingfacilityto the storage terminal on a new pipeline to be built underthelocalMobileRiver.

The company has alreadyreceivedplanningpermission to break ground on the pipeline.

Theplanshavebeen

filedwiththeAlabamaDepartmentofEnvironmentalManagement, the US Army CorpsofEngineers,andthecityofMobileandincludestheinstallationofarailcarheating system. This will help toliquefythenear-solidoilsoitcan be pumped more easily.

It is not yet known what GulfCoastAsphaltwilldowith the imported oil.

Gulf Coast Asphalt will import oil from Canadas oil-rich tar sands

Murphy Oil to open up new subsidiary Murphy Oils board of directors has approved

a plan to open a US-based downstream

subsidiary, Murphy Oil USA Inc.

The move, subject to customary

conditions including confirmation of the tax-free nature of the transaction and

receipt of customary regulatory approvals,

will create an independent, separately

traded company. The spin-off of Murphy

USA is expected to be finalised next year.Murphy believes that creating two

publicly traded companies would

offer a number of advantages.

Separating these two businesses will

allow each to unlock its own potential for

growth. We have built two strong but distinct

businesses, chairman of Murphy board,

Claiborne Deming said in a statement.

Murphy will be a pure-play exploration and

production company with strong returns

and attractive investment opportunities,

while Murphy USA will be a leading retailer

with over 1,100 retail gasoline outlets.

Steven Coss, president and CEO of

Murphy, adds: We look forward to these two

separate, well positioned companies growing

and prospering in their respective industries.

The board of directors also authorised a

special dividend of $2.50 (1.90) per share for

a total dividend of approximately $500 million.

The dividend is payable on 3 December 2012

to holders of record as of 16 November 2012.

Furthermore, the board has approved

a share repurchase programme of up to $1

billion of the companys shares of common

stock. Murphy may utilise a number of different

methods to effect the repurchases, including

open market purchases, accelerated share

repurchases and negotiated block purchases.

These announcements are consistent

with our commitment to creating value

for shareholders, Deming adds.

Statoil and Samsung to develop storage unit for Heidrun Oil and gas company Statoil has signed a letter ofintentwithSamsungHeavyIndustriestobuildapermanentfloatingstorageunit(FSU)intheHeidrunoilfieldintheNorwegianSea.

The contract is worth an estimated $230 million (176million)andgivesStatoil the option to purchase two additional unitsinthefuture.Thenew storage unit, with anexpecteddesignlifeof30years,willreplacethe existing buoy loading systemonthefield.

Samsung will carry out engineering, procurement andconstructionservices.Engineering will start immediately and the unit is expected to be on location at the Heidrun fieldinthefirsthalfof2015.

The procurement process was based on competition which involvedworld-classpre-qualifiedshipyardsandSamsung presented the bestoveralloffer,meetingStatoilsrequirementsforHAS, cost and quality, says Anders Opedal, head ofprojectsatStatoil.

Our ambition is to maintain Heidrun production at least until 2045,saysMortenLoktu,StatoilsheadofoperationsonthenorthclusteroftheNorweigen continental shelf.Toreachthisgoalwe need robust systems onboardandefficientand secure oil export solutions. The new storage unitwillprovidesuchanefficientandrobustoil storage solution in the Heidrun area.

terminal news


OOC plans crude storage terminal in Duqm Government-owned Oman Oil

Company (OOC) is considering

building a 200 million barrel crude

storage facility at Ras Markaz in Duqm,

Oman.

Nasser bin Khamis Al Jashmi,

undersecretary at the Ministry of Oil

and Gas, says the investment needed

to establish one of the worlds largest

crude storage facilities would be big

but divulged no other information

related to financing.The storage facility will be strategic

as well as commercial for crude oil and

other products. We are planning a storage

capacity of 200 million barrels crude plus

other products, Al Jashmi was quoted as

saying. We are now in the study phase

of the project and it will be a phased

development and a big investment. We

are working hard to achieve this project.

The company is already in talks with

potential customers such as Petroleum

Development Oman. We are talking

to some clients from neighbouring

countries and also to other companies.

It will be the sole investor in the crude

storage facility, Al Jasmi adds.

OOC also announced that it is

developing an $800 million (619 million)

petrochemical plant for the production

of purified terephthalic acid (PTA) and Polyethylene terephthatate (PET). It is

currently setting up a separate company

that will make the project a reality. Based

in Sohar, Oman, the plant will source its

materials from the Sohar Refinery and produce 1 million tonnes of PTA

and PET.

VTTI considers Fujairah terminal expansion Vitol Tank Terminals International

(VTTI) is considering expanding

storage capacity at its terminal

in the Port of Fujairah.

VTTI owns 90% of the terminal,

while the government of Fujairah

owns the remaining 10% stake.

VTTI, a 50/50 joint venture between

energy trader Vitol Group and shipping

company MISC Berhad of Malaysia,

already operates 47 storage tanks with

a 1.18 million m3 storage capacity at the

port, which it says is excellently placed

to serve the major bunker market.

With this in mind, VTTI is looking to

double capacity at the site with the

addition of 1 million m3 of storage.

VTTI says it could break ground on the

expansion project at the beginning

of 2014 once plans are finalised and permits granted. The total cost of the

build has not yet been divulged.

Enbridge to expand Athabasca Terminal Canadian energy company Enbridge

is to build additional storage capacity

at its Athabasca Terminal for Suncor

Energy Oil Sands after the two companies

entered into an agreement.

The $150 million (116 million) project,

expected to be operational in the second

quarter of next year, will provide storage

for Suncors growing volumes of bitumen

from its Firebag 3 and 4 developments.

Enbridge will build a new 350,000

barrel tank as well as additional

infrastructure including new booster

pumps, meters and modifications to existing piping manifolds.

Were pleased to further strengthen

our relationship with Suncor by delivering

timely and innovative terminalling and

transportation services, says Steve

Wuori, president of liquids pipelines

and major projects at Enbridge.

Suncor has agreed to support

Enbridges investment in the expansion

project through a long-term services

agreement, during which Enbridge

recovers all operating costs, a return on

equity and all of its invested capital.

terminal news


Oil storage at Johor could reach 10 million m3

Citgos biofuel storage tank approved

Johor Petroleum Development

(JPD) believes Johor

could become one of

Asias key oil storage hubs

in the coming years.

Expansion of facilities

in Pengerang, Tanjung Bin

and Tanjung Langsat will

help bring Johors oil storage

capacity to 10 million m3

between 2017-2020.

According to Mohd

Yazid Jaafar, chief executive

of JPD, Tanjung Bin which

currently stores 840,000m3

could hold up to 3 million m3,

and Tanjung Lansats current

650,000m3 capacity has the

potential to reach 2 million m3.

At the Pengerang

complex, around 5 million

m3 of oil could be stored

there. Dialog, in partnership

with Vopak and Johors

government, is building an

RM5 billion independent

deepwater petroleum

terminal facility at the site.

Phase I of this project,

which saw an investment of

RM1.9 billion, will feature the

construction of 1.3 million m3

of storage infrastructure slated

for completion next year. The

whole project is expected to

be up and running in 2014.

Fuel company Citgo Petroleumhasbeengiventhe go ahead to build a biofuelstoragetankatitsexistingQuincyAvenueterminal in Braintree, Massachusetts.

Citgo proposed to constructa270,000gallonsteelbiofueltankatthefacility,whichwouldhold

biodieselmadefromanimalandvegetablefats.

ApprovalwasgrantedbyBraintrees planning board on a conditional basis. Conditions state that Citgo must monitor thenumberoftrucksheadedfortheproposedfacility.

According to Citgo, the projectwillhaveaminimalimpactonthetownstraffic.

Vopak completes a $1bn US private placement notes programme Vopak, the worlds largest independent tank storage provider,hasissuedanew notes programme in theUSprivateplacement(USPP)marketforatotal$1billion(770million)invariouscurrencies.Thenewissueconsistsofaseniortrancheofapproximately$900millionandasubordinatedtrancheofapproximately $100 million.

Thirty-seveninstitutionalinvestorsareparticipatingin the new notes programme,ofwhich10arenewinvestors.

The senior notes programmeconsistsofvarioustrancheswithmaturitiesrangingfrom10.5to14.5yearsandanaverageannualinterestrateof3.94%.The subordinated notes programme has a maturityofsevenyearsandanaverageannualinterestrateof4.99%.

Theproceedsofthis USPP will be made availabletowardstheendofthisyearandwillbe

used to repay outstanding debtandforothergeneralcorporate purposes.

The programme will furtheralignthematurityprofileoftheoutstandingdebt with Vopaks long-term growth strategy and willprovidemaximumflexibilityunderthecurrent1.2billionrevolvingcreditfacility(RCF).ThematurityoftheRCFwasextendedwith one additional year toupto2017atthebeginningofthisyear.

Citigroup Global Markets, JP Morgan Securities and RBS Securities acted as the joint agents on this transaction.

ForourfourthUSPPprogramme since 2001, we not only experienced a strong interest, but were also able to attract a newgroupoflong-terminvestors.ThisreconfirmsVopaks on-going access torelevantcapitalmarkets,JackdeKreij,vicechairmanoftheexecutiveboardandCFOofVopak,said in a statement.

Primestar awards EPC contract for Fujairah terminal Trading group Primestar

Energy and India-

based Leasing &

Financial Services

are moving ahead

with their oil storage

terminal in the UAE.

Earlier this month the

two companies awarded

Indian company IOT

Infrastructure and Energy

Services a construction

contract for the

engineering, procurement

and construction of the

facility, estimated to

be in the region of $82

million (64 million).

To be built in Fujairah,

the terminal will have

a storage capacity of

600,000m3 when it comes

online by mid-2014.

Primestar and Leasing

& Financial Services

began developing the

terminal after receiving

funding from a consortium

of banks led by Indias

Bank of Baroda.

31 acres of developed industrial land with compound wall near to Kakinada port, AP, India with 26000 MT of multiple storage tanks with A,B,C licenses for petroleum oils and vegetable oils built in 2 acres of land. 29 acres of land is vacant. The land is connected to port of Kakinada by a 100% own 9 KM 16 Inch pipeline to transport oil products. Additional lines can be laid. Ancillary units such as Nitrogen, DG sets, Lab, Compressors for pigging including mobile compressor, automated fire system with back up water storage, truck weighing station, oil testing lab equipment are in place. Land, assets and pipeline

are free of all encumbrances and land is well connected by road.

Please contact: Mob: +91 98666 55039, Email: [email protected]

Suitable location for oil and gas storage terminals at Kakinada Port, India:

terminal news

BP to sell Texas refinery for $2.5b BP is to sell its Texas City, Texas

refinery and other assets to US refiner and marketer Marathon Petroleum

for $2.5 billion (1.9 billion).

The agreement includes $600

million in cash, an estimated $1.2

billion for hydrocarbon inventories

and a $700 million six-year earn

out arrangement based on future

margins and refinery throughput.In addition to the 475,000 barrel

per day refinery, Marathon Petroleum will also acquire connected natural

gas liquid pipelines and four

marketing terminals in the Southeast

US. BP anticipates the transaction,

subject to regulatory and other

approvals, will close early next year.

Describing the sale as the

second major milestone in the

strategic refocusing of our US fuels

business, Iain Conn, CEO of BPs

global refining and marketing business, says: Together with the

sale of our Carson, California refinery in August, the divestment of Texas

City will allow us to focus on BPs

US fuels investments on our three

northern refineries, which are crude feedstock advantaged, and their

associated marketing businesses.

BP has raised over $35 billion

since the beginning of 2010

through asset divestment and

expects this to reach $38 billion

by the end of next year. BP says it

decision to divest the Carson and

Texas City refineries are part of a major strategic refocusing of the

companys global refining portfolio.BP still owns around 8,000 BP-

and Arco-branded sites across

the Midwest, Pacific Northwest and along the East Coast, and in

a statement said it will remain a

significant retailer of fuels in the US. This sale will reduce BPs presence

in the Southeast US, however it

remains firmly committed to growing and strengthening our BP-branded

retail network and the value of

the BP brand east of the Rockies in

partnership with BP-branded jobbers

and dealers, says Doug Sparkman,

president of the companys East

of the Rockies fuels business.

Marathon Petroleum is the buyer of BPs Texas refinery


Vopak, Greenergy and Shell complete purchase of former Coryton refinery Independent tank storage service provider

Vopak, petrol and diesel supplier Greenergy

and oil company Shell UK have completed

the acquisition of the former Coryton refinery.The joint venture purchased the Essex,

UK-based facility from Petroplus Refining and Marketings administrator, PwC.

The transaction, which was first announced earlier this year in June,

was finalised on 28 September.The three companies will invest in

the facility to be named Thames Oil

Port and develop it into a state-of-the-

art import and distribution terminal for oil

products, to be managed by Vopak.

The new terminal initially will be able

to store around 500,000m3, although this

could be doubled in the future.

MVP to store crude oil at Gateways Illinois storage terminal Gateway Terminals, a subsidiary of

Seacor Holdings, is to provide storage

services to MV Purchasing (MVP) for its

Bakken crude oil from 1 December.

The two companies signed

an agreement, announced on 20

November, which will see MVP utilise

Gateways intermodal storage and

shipment facility in Sauget, Illinois.

Gateway has a proven track record

of safely moving large volumes of product

from rail to storage and into barge and

we are looking forward to working with

MVP well into the future, Gateway

Terminals president Tim Power says.

Gateways Sauget-based terminal

can offload 100 car unit trains in less than 24 hours and is located on the

Alton and Southern Railroad, providing

access to all major Class I railroads.

The terminal opened in 2008 and has

been primarily used in clean petroleum

products and fuel ethanol service. It

began offering storage and transfer

services for shale oil in June this year.

terminal news

Decal, a storage and handling service

provider for oil and petrochemical

products, says the expansion of

its Taboguilla Island Terminal in

the Pacific side of the Panama Canal is almost complete.

Decal has invested $65 million

(50 million) to almost double

capacity at the storage terminal

by 181,500m3 to 356,500m3.

Tanks will be able to receive heavy fuel

oil, cutter stocks, diesel and marine gasoil.

The project will enable Decal to

handle heavier products. Pump loading

rates have also been improved and

barge loading capacity increased

from two to a maximum of four

simultaneously, or one tanker up to

7,000 dwt plus three barges at a time.

It will also feature in-tank blending

equipment for fuel oil and the fuel oil

tanks will be heated with diathermic oil.

Loading lines will be electrically traced.

Regarding safety, each tank will

have an overfilling prevention device independent of the level gauge. Foam

injection will also be available. The whole

terminal will be surrounded by a fire water ring fitted with fixed monitors and hydrants.

Environmental protection measures

include the treatment of all contaminated

effluents in the existing plant. All tanks will

have a plastic layer under the bottom to

avoid underground water contamination

via any leakage through the base.

Marine loading arms will be

used instead of hoses and new

skimmers will be provided.


Decal Panama terminal expansion almost complete

Decal spent 50 million doubling capacity at its Taboguila Island Terminal


terminal news

BP Mozambique spends $7 million on fuel terminal upgrades Oil company BP has spent over $7 million (5.4 million)

this year alone renovating its Nacala fuel terminal in

the northern province of Nampula, Mozambique.

The upgrades, which were originally postponed

due to capital shortages, will enable the terminal

to facilitate large sea-going vessels and compete

with nearby ports, according to Salvador

Namburete, Mozambican Minister of Energy.

Namburete was reported to have said that the

facilitys infrastructure enhancements will enable BP

to continue supplying fuel locally and further afield as it works to meet growing demand for fuel in the

nation. BP has a 16% share in the countrys oil market.

With the opening of the rehabilitated

fuel terminal, BP will consolidate its second

position on our country in fuel supply,

Namburete was quoted as saying.

Construction work at the Nacala terminal

created 200 new jobs, according to BP Mozambique

general director Martinho Guambe, who reportedly

said: This investment shows the compromise the

company has in the fuel market in Mozambique,

and we are determined to expand our business.

In addition, BP is looking to upgrade

its Matola-based fuel terminal in the

central province of Sofala.

Odfjellto develop storage terminal at Le Havre Port

Vopak and SABIC to develop new storage terminal in Jubail

Maastank to expand storage capacity in Rotterdam

Odfjell Terminals is to develop a bulk

liquid storage terminal at Le Havre port in

the Haute-Normandie region of France

after its project proposal was selected by

Grand Port Maritime du Havre (GPMH).

Planned for a 30-acre plot located along

the Grand Canal Maritime, the first phase of the Greenfield terminal is thought to feature

around 200,000m3 of storage capacity.

A feasibility study will be carried out

in the coming months and Odfjell and

GPMH aim to finalise the project details and reach an agreement on a Site

Reservation Protocol by 1 April next year.

Le Havre Port is one of the largest

ports in northern Europe.

Vopak, the worlds largest independent

tank storage service provider, and

Saudi Basic Industries (SABIC) have

formed a joint venture to develop a

new storage terminal in King Fahd

Industrial Port in Jubail, Saudi Arabia.

SABIC holds a 75% stake in Jubail

Chemical Storage and Services

Company (JCSSC) and Vopak holds

25%. The construction of the facility

will be financed with the parties own resources and through external funds.

The new terminal, slated for completion

in the beginning of 2015, will be able

to store approximately 250,000m3, with

the potential for expansion in the future.

It will comprise around 40 commodity

and specialty chemical storage tanks,

complete with truck handling and

ship loading facilities for five berths. The facility will help serve Jubails

growing demand for petrochemicals

and the expansion of downstream

industries in the region.

Maastank is to expand its storage

terminal in Botlek, the Netherlands,

after signing a contract with the

Port of Rotterdam Authority.

Maastank is a specialised

terminal for the storage and

transshipment of vegetable oil

and fats as well as raw materials

for the oleochemical industry.

The expansion project will

increase the size of the terminal

from 17,000m2 to 21,500m2 which

will allow Maastank to enlarge

its tank storage capacity from

40,000m3 to 90,000m3 in the coming

years. The company currently

has 48 storage tanks in operation

at the Port of Rotterdam.

The central Botlek Geul

location of Maastank has one

berth for seagoing ships and two

berths for inland vessels.

terminal news


Dutch terminal unveils new train loading stationNetherlands-based Botlek Tank

Terminal (BTT) has given the

go-ahead for a consortium of

contractors to start work on

a new train loading station.

The station, with two 340m

tracks, will be able to load six

wagons simultaneously, at a

rate of 400 tonnes per hour.

Construction of this new rail

link will cost 2 million and

take around six months.

The new train loading

station is BTTs response to

growing customer demand

for rail transport. It will be used

initially to load block trains with

biodiesel and will be modified in due course to handle other

oil products such as jet fuel,

petrol, diesel and edible oils.

Traffic will begin with two trains a week before

throughput increase finally up to two trains a day. BTTs new train loading station comes in response to customer demand

BP agrees to fine and oil spill response improvements BP Products North America, the US EPA and the Department ofJustice(DoJ)havereachedanagreementregardinganoticeofviolationtheEPAissuedtoBPin2006relatedtospill response training exercises conducted at the Curtis BayproductterminalinBaltimore,Marylandin2005.

TheEPAlodgedconcernsoverthetrainingexercises,whichinvolvednoactualoilspillages,attheterminal.Italleged that BP breached state regulations which require oilstoragefacilitiestocarryoutoilspillpracticedrills.

Undertheagreement,BPwillpaya$210,000(162,600)penalty and carry out independent audits at other product terminals to assess response plans and share those results with the EPA. In addition, the company is applying best practicesforoilspillresponsetoitsoperatingsites.

BPiscommittedtosafeoperationsandweconductregularemergencyresponseexercisesatourfuelterminals,StevePankhurst,presidentofBPPipelinesNorthAmerica,saidinastatement.In2005,ourspillresponsecontractordidnotmeetBPorEPAsstandardsforrapidresponseduringdrills.Thiswasunacceptable to us and we took action to replace the contractor.

OilstoragefacilitiessuchastheCurtisBayTerminal,whichcanstorearound22milliongallonsonoil,musthaveanoilspillresponseplaninplacefeaturingstafftraining,spill response equipment and a worst case scenario strategyforthecontainmentandclean-upofoilspills.

Since 2010, BP has strengthened and shared industry best practicesforoilspillresponseandweareassuringthattheselearningsareinplaceinourfacilitiesglobally,Pankhurstsays.WeresharingthesebestpracticeswithEPAandputtingthemintoactionandourproductsterminalsaspartofthisagreement.

terminal news


OdfjellHolding secures funds for project expansions OdfjellHolding,asubsidiaryofOTLGC.V.ajointventurebetweenOdfjellTerminalsandLindsayGoldberghassecureda$200million(154million)five-yearsecuredcreditfacilityfromagroupoffivebanks.

Thefundsareavailablethroughafive-yearreducingrevolvingcreditfacility.OdfjellHoldingscanalsoobtainincreasesintheprincipalamountunderthisfacilityofuptoanadditional$100million.

TheownerofOdfjellTerminalsHoustonandthebrownfieldprojectOdfjellTerminalsCharleston,OdfjellHoldingwillusethesefundstofinanceexpansionprojectsatboththesesitesandtorefinanceanexisting$54millionindebtednessatOdfjellTerminals.

OdfjellTerminalshasbrokengroundontheCharlestonterminal,whichwillhaveastoragecapacityof80,000m3 when it comes online next year. The company is also considering other expansion projects across North America.

Tesoro sells marine terminal and pipelines to Tesoro Logistics Tesoro Corporations subsidiary

Tesoro Refining and Marketing has sold its Long Beach marine terminal

and Los Angeles short-haul pipelines

to the partnership company Tesoro

Logistics for a total consideration

of $210 million (160 million).

This terminal, which is located

near Tesoros refinery in Wilmington, California, features six storage

tanks with a total 235,000 barrel

capacity, related pipelines with

70,000 barrels per day throughput

and a two-vessel berth dock leased

from the city of Long Beach.

Tesoro Logistics acquired the

terminal and related infrastructure

for $210 million; $189 million in cash

and the partnerships equity valued

at approximately $21 million.

The transaction marks Tesoros

second sale of assets to the

partnership and represents the first significant addition of third party volumes into the TLLP system, one of

the partnerships primary business

objectives, says Greg Goff, Tesoro

Corporations president and CEO,

and chairman and CEO of Tesoro

Logistics. We are committed to

capturing the full value of our

logistics assets and growing the

partnerships distributions.

In connection with the closing

of the transaction, Tesoro and

the partnership entered into a

throughput and use agreement for

the marine terminal assets and a

transportation services agreement

for the short-haul pipeline assets.

Both of these agreements

include minimum throughput

commitments, annual price

escalations and 10-year initial

contract terms. Tesoro Logistics

expects that this contribution will

result in an estimated $22 million

of additional annual EBITDA,

approximately half of which is

expected to be from third parties.

Odec expands for biofuels Odec Tankstorage is increasing its storage

capacity in a bid to handle more biofuels.

The company recently acquired a 9,130m3 terminal

area in Sdertlje oil harbour, Sweden. The terminal

is now under development and, upon completion,

will feature four new tanks for biofuels storage.

Phase 1 of this project is slated to begin at the end

of this year and includes a 6,000m3 insulated tank for

biofuels. This tank will be put into operation in mid-2013.

Tradebe Port Service terminal to come online Environmental services provider Tradebe is

on track with the construction of its storage

terminal in Barcelona Port, Spain.

The Tradebe Port Service terminal is due to be

operational at the beginning of next year when it

will be able to handle 450,000m3 of clean petroleum

products and fuel oil for the domestic and international

markets, via access to a new 16.5m deep sea jetty.

Tradebe says it could expand the terminal

once the first phase comes online as its clients who supply the Mediterranean market

are providing good opportunities.

IL&FS plans storage terminal in Fujairah IL&FS Prime Terminals FZC is developing a storage tank terminal in Fujairah, UAE.

The terminal will comprise 15 storage tanks with a total storage capacity of 850,000 tonnes.

IL&FS Engineering and Construction has been

selected to build the terminal and received a Letter

of Intent (LOI) for AED304 million (64 million).

The contract is for engineering, procurement

and construction of the project, which is

expected to take 17 months to complete.

New storage tanks proposed for Ceylon Petroleum sites Sri Lanka Ministry of Petroleum Industry is looking to build new storage tanks at two Ceylon Petroleum storage terminals.

The ministry has submitted a proposal to the National Planning Department for the construction of new tanks in Kolonnawa and Muthurajawela facilities at a cost of LKR5 billion (30 million).

Under the proposal, seven tanks are planned for Kolonnawa and three would be erected in Muthurajawela. The project is slated for completion in 2015.

news in brief...ArcLight acquires Blackwater Midstream

Longwei Petroleum brings Huajie fuel storage depot online

Givoteliminates storage woes with new oil tank

Energy-focused investment firm ArcLight Capital Partners has

finalised its acquisition of Blackwater Midstream.

Blackwater CEO Michael Suder

said the company was extremely

pleased to have finalised our merger and join the ArcLight group of

portfolio companies.

He said the deal will allow

Blackwater to continue to grow and

expand on the successful business

plan that we have executed over

the last four years.

We believe low, sustained gas

prices and surging crude production

will result in increased bulk storage

needs to serve the domestic refining, ArcLight managing partner and co-

founder Daniel Revers was quoted

as saying, adding that Blackwater

is poised to take advantage of the

growth in downstream liquid bulk

storage opportunities.

Blackwater has a 900,000

barrel storage facility in Westwego,

Louisiana; 221,000 barrels of capacity

in Brunswick, Georgia; and 177,000

barrels of capacity Salisbury,

Maryland.

Chinese energy company Longwei

Petroleum Investment Holding

has brought its newly acquired

fuel storage depot online.

Longweis RMB700 million (85

million) asset purchase of Huajie

Petroleum was finalised in late September. The company has

since received its first shipment of petroleum to the depot and is now

selling product to its customers.

Included in the asset

purchase is a Fanshi County,

Shanxi province-located tank

storage farm with a total storage

capacity of 100,000 tonnes.

The Huajie facility nearly

doubles our storage capacity to a

total 220,000 tonnes and extends

our reach into the fast-growing

industrial region of northern Shanxi

province, Longweis chairman

and CEO Cai Yongjun says.

He adds the asset purchase

was completed using our

own cash resources without

dilution to our shareholders.

Longwei also acquired a

dedicated rail spur, a vehicle

loading and uploading station,

an office building and land rights for 98 acres adjacent to

the main regional rail line.

Closing on the Huajie facilities

has allowed us to increase our

regional presence and attract new

customers, says Michael Toups,

Longweis CFO. With the addition

of the Huajie facility, we have

strengthened our lead as the largest

non-state-owned fuel storage and

distribution business in province.

Israeli oil and gas exploration

company Givot Olam will no

longer have to worry about

its oil storage needs as it

works to develop its Meged

well, near Rosh HaAyin.

The company has rented a

new 300,000-barrel oil storage

tank sufficient to handle increasing capacity from the well.

The new lease is for two years,

due to end on 30 September

2014, but this could be extended

for a further two years.

The oil tank requires 36,000

barrels of oil to be operational.

Above this quantity, the company

can sell oil to third parties.

The lease on Givots

current, smaller storage tank

is due to expire and there is

no option to renew it.


terminal news


Vopak JV opens storage terminal in the Netherlands

Vopak Terminal Eemshaven,

a 50/50 joint venture

between Vopak and NIBC

European Infrastructure Fund

(NEIF), was opened at the

beginning of October.

Operated by Vopak, the

new terminal for strategic

oil reserves has a storage

capacity of 660,000m3

serving the Netherlands and

other EU member states. This

initial storage space, which

is made up of 11 60,000m3

tanks, has been leased out

for a long-term period but

there is potential to expand

the terminal to be able to

store a total 2.76 million m3

in future. It also features a

jetty for sea-going vessels.

Marijke van Beek, Major

of Eemsmond; Harm Post,

director of Groningen

Seaports; Jeroen Drost, NIBC

chairman and CEO; and Eelco

Hoekstra, CEO and Chairman

of the executive board of

Royal Vopak were present for

the terminals inauguration.

Van Beek comments:

The arrival of Vopak is

for me a symbol of the

strength and growth of

Eemshaven, an energy port

approaching maturity.

Post describes the new

storage terminal as a very

interesting addition to our

existing energy initiatives,

while Drost believes the facility

represents another important

step for the Netherlands in

maintaining a leading global

position in oil logistics.

Designed and to be

operated in compliance

with European and Dutch

environmental standards,

the terminal brings Vopaks

worldwide network of tank

storage terminals to 84. For

Vopak this is the first terminal

built for strategic oil reserves

and it was developed after

constructive consultation

with all stakeholders,

including NGOs, which

was particularly important

in light of the proximity to

the Waddenzee nature

reserve, says Hoekstra.

Vopak Terminal Eemshaven

terminal news


terminal news

Shell withdraws business from OdfjellTerminals Rotterdam Oil company Shell has

ended its storage contract

with Norways tank storage

company Odfjell Terminals

Rotterdam (OTR) and will

withdraw its business from

the terminal, located at

the Port of Rotterdam.

The decision, of which

Odfjell was informed in August,

came about after the terminal

was shut down on 27 July for

breaching safety standards.

At the time of the closure,

Odfjell Terminals interim

president Ake Gregertsen

said: Odfjell is determined

to improve integrity of the

terminal in order to ensure

safe operations. It is our

commitment to do whatever

is necessary to bring OTR back

up to industry standards.

However a spokesperson

for Shell Netherlands said Shell

offered Odjfell a period of 30

days to cure the breach to

which they did not respond.

Today they are still in

breach of material obligations,

we see no improvement of

their performance and have

no reason to believe that a

substantial improvement of

performance of releationship

can be made in the short

term. We have therefore

informed Odfjell we have

terminated the agreement

as per 11 September

2012, the spokesman

was quoted as saying.

It is not yet known

if Shell will take legal

action against OTR for this

breach of contract.

Nevertheless, Shell says

the withdrawal will not

affect its customers as it has

already secured alternative

storage in Rotterdam,

Antwerp and Amsterdam. Shell has taken its business elsewhere


terminal news

JV oil storage terminal in Fujairah already underway

Gibson Energy to increase storage at Hardisty Terminal

Ground has broken on a new

oil storage terminal in Fujairah.

IL&FS Prime Terminals,

a joint venture between

IL&FS Maritime Infrastructure

Company (IMIC) and PTF, are

investing Dh477 million (100

million) into the new facility.

IMIC will own 80% of the

terminal and operate the

14 storage tanks, with PTF

owning the remaining 20%.

Phase I of the project,

construction of which is

already underway, will

see 333,088m3 of the total

632,678m3 storage capacity

built within two years time.

Contracting company ANC

Foster is currently conducting

earthworks for the tanks.

Shahzaad Dalal,

chairman and CEO of IL&FS

Investment Advisors, was

quoted as saying: The main

construction package is

currently in tendering phases.

Three consortia have placed

bids for the project.

The land on which the oil

terminal will be built is being

leased from the government

of Fujairah under a 50-year

contract. Dalal expects a

full return on investment

within eight to 10 years.

The project marks an

important step for IL&FS

as it seeks to expand its

expertise in developing,

executing and managing

BOT infrastructure projects

in the fast growing Middle

Eastern and African markets.

As there is a great need

to develop infrastructure

in these regions, many

governments are turning to

experienced private sector

players, who can efficiently implement projects, Dalal

was reported to have said.

Midstream energy company Gibson Energy is to expand its Hardisty Terminal in Alberta, Canada and will begin with theconstructionoftwooilstoragetanks.

Withatotalstoragecapacityof800,000bblsthesetwotankswillformtheinitialanchorforanexpansionofthefacility.Sitepreparationforthetwo 400,000 bbl tanks is scheduled tostartbytheendofthisyear,withcommissioningexpectedforearly2014.

The new tanks will be connected to third party receipt pipelinesandfacilitiesandwillhaveconnectivitytoallcurrentexportpipelinesfromHardisty.

Thisinitialdevelopmentonoureastern lands at Hardisty Terminal starts totakeadvantageofthecompanysstrategic184-acreundevelopedlandpositioninthearea,saysRickWise,GibsonsseniorVPofoperations.

WeexpectcontinuedgrowthatourHardisty Terminal as oil sands and conventionaloilproductioncontinuetodevelopatanacceleratedpace.

In similar news, Gibson has signed a letterofintentwithaunittraindevelopertoexploreunittrainshipmentsfromtheHardistyarea.TheproposedfacilitywoulduseCanadianPacificsNorthMainLinefortransportingcrudebyrailto markets across North America.


terminal news

Canadian National Railway Company

(CN) and crude oil company Tundra

Energy Marketing have signed a

Memorandum of Understanding to

build a crude oil railcar loading terminal

near Cromer, Manitoba in Canada.

The new terminal will begin loading

30,000 barrels per day of crude oil into

rail cars in the second quarter of next

year, helping to benefit Bakken crude oil producers in Manitoba and Saskatchewan.

The Cromer transload terminal

is expandable, with the potential to

handle complete crude oil unit trains

of more than 100 cars, which will

generate greater efficiencies and market reach for Canadian crude oil,

says Jean-Jacques Ruest, CN executive

VP and chief marketing officer.Tundra Energy president, Bryan

Lankester, adds: This project, combined

with 410,000 barrels of oil storage currently

under construction at our terminal in

Cromer a six-fold increase in existing

capacity will provide us with access to

alternative North American markets for

Williston Basin crude oil over CNs network

at a time when there is inadequate

pipeline takeaway capacity.

Ruest comments: We expect

to move more than 30,000 carloads

of crude oil in 2012, and we believe

we have the scope to double this

crude oil business next year.

The terminal will benefit Bakken crude oil producers in Manitoba and Saskatchewan

CN and Tundra Energy sign MoU


terminal news

Magellans De Moines biodiesel terminal online Magellan Midstream Partners biodiesel

storage and blending terminal is now

operational in Des Moines, Iowa.

The facility can store and mix 5,000

barrels of 2%, 5%, 10% and 20% biodiesel

blends. The 5,000 barrel storage tank

is heated, insulated and features an

accompanying pipeline network to the

track rack that is also heated and insulated.

This system offers our customers

accuracy, quality and a variety of

biodiesel blend options, Shawn Baker,

Magellans director of transportation and

marketing, was reported to have said.

Magellan now offers biodiesel

blending across 11 terminals. Its De

Moines terminal was partly financed by funding from the US DoE.

Consortium buys 70% remaining stake in LBC Terminals Jersey Theremaining70%ofLBCTerminalsJersey has been acquired fromChallengerInfrastructureFundandChallengerLife.

AdvisedbyAccessCapitalAdvisers,aconsortiummadeupofDutchpensionfundassetmanagersAPG Algemene Pensioen Groep, PGGM and Australian superannuation investorspurchasedthe70%stakefor$297.5million(233million).

Thecompletionofthistransactionfollowsthepartiessigning a binding sale and purchase agreement in June and obtaining European Commission (CompetitionDG)clearance.

Access has been managing theinterestsinLBCforitsclients

Australiansuperannuationinvestorssince2007andwillnowmanagetheinvestmentforallinvestorsunder an agreement with LBC.

At a time when there are significantrisksontheglobaleconomichorizon,assetssuchasLBCthatprovidegoodreturnsthroughthe economic cycle are a good fitforpensionfundinvestors,saysGrahamMatthews,chiefinvestmentofficeratAccessCapitalAdvisors.

Theacquisitionvaluationisequivalenttoamultipleof9.3times the expected FY13 earnings forLBC,commentsStephenBurns,AccessheadofEurope.

Baker&McKenziewastheconsortiumslegaladviser.

Cancen finalises acquisition of Kinsella facilityInCanada,energyservicescompany Cancen Oil Canada hasfinalisedtheacquisitionofAstraEnergyCanadasKinsella crude oil terminal andblendingfacilitylocatedin Hardisty, Alberta.

Cancen initially announced the agreement in May earlier this year.

Cancen purchased the facilityfor$5million(4million);$4.5millioncashanda$500,000promissorynotebearing interest at prime plus 2%securedagainstthefacility.

The terminal is connected totheInterPipelineBowRiverpipeline system in Albertas BeaverCountyandtheblendingfacilitycanblendandstore500m3 adayofsweet,sourandheavyclean crude. It was originally put intooperationin2004,servingproducers based in west Canada.

Tank Storage magazine

previouslyreportedthatCancen planned to enhance thefacilitythetreatwasteoiland handle wastewater, while keeping capacity the same.

Norterminal plans oil terminal in Finnmark, Norway Norterminal is looking to

develop a strategic new oil

terminal in Norways Finnmark.

Norterminal plans to

break ground on the NOK1.5-

2 billion (205-273 million)

terminal in 2016 depending

on municipal proceedings

and development plans.

The terminal will be

able to store 1 million m3 of

crude oil in both storage

tanks and caverns when it

comes online. It will be able

to receive between 150 and

300 tankers of up to 300,000

dwt each year with the ability

to ship around 10 million

tonnes of crude oil annually.

Development of new

oilfields in the Barents Sea and the opening of new shipping

lanes from Russia and Norway

makes Finnmark a strategic

and suitable place for interim

storage of oil, Norterminals

owner Jacob Stolt Nielsen

was reported to have said.

We believe Gamneset

is the best location, in Sor-

Varanger. We are in a dialog

with several Russian companies

but we cant yet comment

on which companies they

are. But the response so

far has been good. Finnmark is an ideal location for Norterminals new facility


terminal news

Alyeskas storage tank inspection waiver revoked In Valdez, Alaska, Alyeska Pipeline Service is working to

reinstate a waiver originally issued by the Department

of Environmental Conservation (DEC) that would delay

an inspection of one of its crude oil storage tanks.

Following a request submission, DEC awarded Alyeska a

two-year waiver in February that would postpone an internal

inspection of Valdez Marine Terminals Tank 5 until mid-2014 and

increase the time between such inspections from 10 to 12 years.

In May, however, the DEC withdrew the waiver, which

was granted subject to Alyeska agreeing to six conditions,

claiming the company failed to comply with conditions

relating to corrosion control. Under the agreement, Alyeska

agreed to provide regular rectifier logs to DEC as proof of the continuous operation the cathodic protection (CP) system.

According to the letter issued by DEC on 23 May, while

Alyeska did provide the logs as required, data revealed

the CP system was operating correctly just 26% of the

time during a six month period ending mid-April.

Stated differently, the CP system was not operated

correctly 74% of that time, the letter said. The letter went on

to say that Alyeska failed to explain why technicians failed

to recognise, investigate or correct the faulty system.

There is no indication that Alyeska personnel

recognised the significance of the problem until contacted by the department engineering staff about

the rectifier logs, the DEC was reported to have said.As a result, the department has ordered Alyeska

to take Tank 5 out of service and have it internally

inspected before 31 December 2012.

Since its revocation, Alyeska is pursuing the reinstatement

of the waiver. In a letter sent to DEC on 7 June, Alyeskas

operational director of the Valdez terminal Scott Hicks

wrote: Alyeska acknowledges that some deficiencies occurred in the Tank 5 rectifier monitoring and CP maintenance programmes between October 2011 and

April 2012, and we take these deficiencies very seriously.Alyeska operates the Trans-Alaska Pipeline System and

the Valdez Marine Terminal, which comprises 18 510,000 barrel

storage tanks measuring 250ft wide and 63ft high. Not all the

tanks are operational today as oil flow via its pipeline has fallen by more than two-thirds from the 2.1 million barrels a day in 1988.

Baltic Oil Terminals finalises name change Tank terminals company

Baltic Oil Terminals has

completed the process to

change its name to Pan

European Terminals.

The company held its

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