Whilst some are still to be convinced of the business model of biofuel storage, interesting news from France where the Dépôt pétrolier de Port-La-Nouvelle (DPPLN) storage terminal is converting from oil to biodiesel and in the process becoming the country’s first dedicated biodiesel hub on the Mediterranean coast. The news comes just days after an announcement that European countries will increase solid biofuels imports to 50-80 million tonnes by 2020.
The Port of Rotterdam Authority and TPK (Terminal Presidente Kennedy) Logistica signed a joint venture agreement in Vitória, Brazil for the development of Porto Central, a new port in Brazil. TPK Logistica is owned by a group of Brazilian companies with a great deal of experience in the mining, construction and offshore sectors.
The ‘greenfield’ port will be built in the southernmost part of the state of Espirito Santo in the industrial heart of Brazil. It will be an industrial deep sea port for the handling of oil, gas, dry bulk, containers and general cargo. The port will also serve as a support centre for the strongly growing offshore sector. In the coming time, the already existing market interest will be specified and the required permits will be obtained. The Port Authority’s main role will be providing its extensive expertise and knowledge in the field of port development. An investment decision will not be made until a later stage.
Fresh from this month’s Tank World Congress and Expo 2014 we pick out ten key trends found in the Congress delivered by our expert speakers including Sharjah Free Zones Authority, Port of Amsterdam, Sohar Port & Freezone, Port of Salalah, Gulf Petrochem, ENOC, the Energy Institute, Galana and many more. The event proved hugely popular and was attended by over 1,600 attendees across the Tank Storage industry. Tank World Congress and Expo will return in 2015 and free tickets are now available. See below to register.
1. The industry is undergoing a shift from crude oil to refined products. Cleaner and lighter fuels and alternate fuels are in greater demand than even before. This is partly related to growing environmental legislation regarding governing fuels and changes in customer demands.
With just under a month to go until the Tank World Congress and Expo, Tank World News gains an exclusive sneak preview of the event which is set to bring two days of expert insight, practical case studies, in-depth discussion, technology launches and networking to Dubai on April 14th & 15th 2014.
With over 85 speakers delivering keynotes, case studies and workshops across the two days its impossible to cover all the highlights but we are honoured to have an introduction from H.E Dr. Matar Al Neyadi, Undersecretary of Ministry of Energy of United Arab Emirates who are also officially endorsing the event. Once H.E Dr. Matar Al Neyadi has opened the Executive Congress, a leading figure within the industry and region as a whole, Dr. Rashid Alleem, Director General Department of Seaports & Customs and Sharjah Free Zones Authority delivers a powerful presentation asking the key question – Sustainability: Fact or Fiction? Next up in the opening session sees high-level insights from industry giants Saudi Aramco and leading European facilities Ports of Zeeland and Amsterdam.
Today Tank World talks to Sami Habbab, the CEO of Delta Rubis, the leading independent liquid fuels storage player in the Mediterranean region and an expert speaker at Tank World Expo. Delta Group entered the oil industry in 1984 as Delta Petrol with its floating storage facility in Iskenderun. Subsequently, the company built and operated its first bulk liquid storage terminal in Ceyhan, Turkey and then built another one in Poti, Georgia to service the Caspian oil exports. In 2007, the capacity of the Ceyhan Oil Storage Terminal was doubled and reached 650,000 cbm. In January 2012, Rubis Terminal, amongst the top 10 largest independent liquid storage operators in the world, partnered with Delta Petrol to form Delta Rubis.
Luke Upton (LU): Thanks for the time today Sami, it has now been two years since Delta Petrol partnered with Rubis Terminal to become Delta Rubis. What have you learnt in this time?
Sami Habbab (SH): It’s been a great two years as together we’ve been able to grow and develop quickly. As Delta Rubis, we have moved forward with determined steps and with a new strategic vision and also been able to seek out new expansion opportunities in Turkey, Black Sea, the Mediterranean and Middle East regions in not only in liquid fuel storage, but also in side sectors such as LPG, liquid chemicals, biofuels. The progressive sophistication of oil products and increased volatility in the global oil markets requires flexible value added and diverse logistics services in global markets which Delta Rubis is now able to provide.
1) Terminal growth – demand continues to grow for storage capacity, especially in North America and Europe. Despite the rise in global concerns regarding CO2 emissions and climate change, energy forecasters still predict long term growth in oil demand. Transportation demand (motorization) particularly in Asia continues to fuel this demand and show little sign of slowing in 2014.
2) Greater demand for liquid bulk storage – has been steadily growing for several years due in part to a structural imbalance between global supply and local demand and is likely to accelerate further, particularly in Asia. Increased varieties and demands of liquid bulks helps force up demand.
3) Diversification in petrochemical products – cleaner and lighter fuels and alternate fuels are in greater demand than even before. Particularly related to growing environmental legislation regarding governing fuels. These new products lead to a greater diversification in storage requirements in terms of location, size, capacity, location etc.
4) M&A’s to continue to influence the industry – 2013 saw a large number of M&A’s particularly in the USA, where opportunistic independent operators have made strides to capitalise on international and domestic global energy usage trends. Which leads us to point number 5…
5) Traders are buying into storage capacity – plus other infrastructure in greater numbers with the ownership of oil storage and processing offering greater substance and stability for them, as well as providing valuable and less volatile income streams.
5) Political instability – although Iran’s relationship with the West is warming up as sanctions are eased, and their ability to export oil increases, the conflict in Syria still rages whilst areas of Iraq, Libya and Egypt remain unstable. Tensions in Asia with China and North Korea also potentially threaten key shipping lanes.
6) Technical safety – increasingly stringent technical, safety and environmental standards continue to influence the development of facilities where complying these standards dominates the design and development of new build facilities and investment in existing sites.
7) Africa – although tank storage has existed in Africa for decades, increased stability, a growing demand, booming populations and size-able discoveries of hydrocarbons have fueled its extensive recent growth with several new facilities mostly on the East Coast are set to come online in 2014. For more on African developments see here.
For a free report on storage trends in the storage industry featuring contributions from DELTA, GPS Chemoil, Saudi Aramco, AQABA Development Corporation, Solvochem, Endress & Hauser, Port of Salalah, Stolthaven Terminals, and many more click here.
Plans have been announced by the Gibraltar government to end the reliance on floating storage and develop modern fuel storage facilities on shore. The Vemaoil tanker, the Vemaspirit, was previously anchored in British waters in the Bay of Gibraltar and used to supply smaller tankers that delivered fuel to cargo ships. But the Gibraltar Chronicle reports that the government is now committed to finding an alternative at a time of heightened competition in the Strait of Gibraltar bunkering market.
“Some operators have chosen to take storage space at the shore facilities in Algeciras while Vemaoil, wishing to invest in Gibraltar, has been working with Government for a considerable period of time to develop a solution utilising the Detached Mole as a bunker storage facility,” a spokesman for the Gibraltar Government said.