Terminal operators have plenty of work to do if they are to be in a position to enable the energy transition, but a lot of progress is being made
For the best part of a century, the bulk liquids storage terminal industry has played a pivotal role in the global energy market; it has enjoyed a similar position in the petrochemical industry since the 1950s too. Terminals do more than just offer a place to move product between modes of transport; they provide flexibility in long supply chains, buffering volumes to allow demand to be met, regardless of the pace of production.
As the world goes through its current phase of transition in the use of energy and, perhaps to a lesser extent, chemicals, terminals can offer the same services to make the movement of alternative fuels more efficient. After all, the areas of consumption of these new fuels are very much the same as those for traditional fuels.
This much has been apparent for a few years, as this annual review of terminal investment activity has shown. But it is also apparent that the pace of investment has picked up, despite the uncertainties that surround not just the routes that will be taken on the road to decarbonisation but also the wider geopolitical and economic environment. Terminal operators have to make a choice on the basis of the best information they can get, so as to be able to develop the sorts of facilities that will be required in the future – especially as larger projects will have a payback period measured in decades rather than years.
For some projects, the work is easier. Where existing fossil fuels are being challenged by drop-in alternatives such as biodiesel (or even ‘e-fuels’, though there has not been much activity in that area this year), it may be enough to renew piping so as to ensure an effective separation between grades. Mass balance approaches may even make this redundant. On the other hand, building a global infrastructure for the production of renewable hydrogen and its delivery to market, whether as liquefied hydrogen, ammonia or a liquid organic hydrogen carrier (LOHC), will take a lot of money. It is noticeable that the projects such as these that are underway at present depend on long-term commitment by offtakers and, in many cases, the regulatory and financial support of governments or local authorities (including port authorities).
As a result, this year’s review of terminal construction and expansion activity is as long as ever. And we should not ignore the fact that there are plenty of projects that involve traditional fuels and crude oil. This review does not normally consider LNG terminals, since that has long been a very specific industry, but as the transition moves forward there are plenty of developments linking LNG and hydrogen, as the cryogenic technologies employed are similar.
NORTH AMERICA
Gibson Energy, Alberta
Gibson Energy is to build another two 435,000-bbl (70,000-m3) tanks at its Edmonton Terminal, underpinned by a 15-year take-or-pay contract agreement with Cenovus Energy. Together with a similar tank already in development, this will add 1.3m bbl of new capacity by the end of 2024, giving the site a total capacity of some 3.0m bbl.
“Gibson is very pleased with the sanction of two new tanks at our Edmonton Terminal, which will further increase our high-quality, long-term infrastructure revenues and drive continued distributable cash flow per share growth,” says Steve Spaulding, president/CEO.
Vopak, British Columbia
AltaGas and Vopak have agreed to further evaluate the development of a large-scale LPG and bulk liquids terminal on Ridley Island in British Columbia, Canada. The projected Ridley Island Energy Export Facility (REEF) will sit adjacent to the existing Ridley Island Propane Export Terminal (RIPET) that the two partners commissioned in 2019, and will be used to facilitate the export of LPGs, methanol and other bulk liquids. Key approvals and permits are already in place for the construction of storage tanks, jetties and other infrastructure on the 77-ha site.
“We are excited to build on our success with AltaGas in Prince Rupert,” says Dick Richelle, Vopak CEO. “Our goal is to create together with partners high quality critical infrastructure for vital products. The strategic location of Prince Rupert, with the shortest shipping distances between North America and Asia, has the potential to increase the trade between Canada and the Asia Pacific region. REEF fits very well within Vopak’s strategic pillar to grow in gas and industrial infrastructure. We look forward to further collaboration with First Nations rights holders and key stakeholders to make this project a reality.”
Vopak, California
Vopak finalised the repurposing of 22 storage tanks at its Los Angeles terminal to offer 148,000 m3 (39m gal) of tankage for renewable fuels, including sustainable aviation fuel (SAF) and renewable diesel, this past October. Vopak Los Angeles has a long-term agreement for this storage infrastructure with Neste, the world’s leading producer of SAF, renewable diesel and renewable feedstock solutions for various polymers and chemicals industry uses.
“Neste is fully committed to supporting the energy transition in the US as well as globally via working closely together with partners to increase the availability of our renewable fuels. Our cooperation with Vopak shows how repurposing existing fuel distribution infrastructure can accelerate the much needed transition to renewable energy,” says Annika Tibbe, acting president of Neste US.
The Vopak Los Angeles Terminal is strategically located in the Port of Los Angeles and is well-connected for logistics via various modes of transport, including vessel, barge, truck, pipeline and rail. The repurposed storage capacity at the terminal significantly increases the availability and accessibility of Neste’s renewable fuels at critical hubs in the Los Angeles area, such as SAF for airlines at the Los Angeles International Airport (LAX) and surrounding airports, and renewable diesel for fuelling stations serving road transport.
IMTT, New Jersey
IMTT has announced plans to consolidate existing bulk liquids storage operations at its Bayonne site in New Jersey to free up some 130 acres (52.6 ha) of waterfront land for redevelopment. IMTT says the move will allow it to serve its bulk customers more efficiently and attract additional economic opportunities to the Bayonne area. There will be some reduction in storage capacity but, IMTT says, the terminal will continue to be the largest in the New York Harbor area.
“We are pleased to announce that IMTT is consolidating a portion of the Bayonne terminal and embarking on a transformational development process for the eastern portion of the property. This will allow us to continue providing high-quality storage and logistics services on the west side of our property and pursue sustainable development opportunities on the east side,” says Carlin Conner, IMTT’s chairman/CEO. “IMTT has proudly been operating in Bayonne for nearly four decades and we are committed to continuing to provide the safe and dependable services our storage and logistics customers rely on, while also preparing the east side of our property for commercial activity that will support growth in the community for years to come. We are eager to work with the city of Bayonne, the state of New Jersey and other various stakeholders on a plan that will provide significant economic and environmental benefits to Bayonne and the broader New York metropolitan area.”
Kinder Morgan, Louisiana
Kinder Morgan commissioned the renewable feedstock storage and logistics hub at its Harvey facility in Louisiana last year; the site serves as a US hub for Neste.
Kinder Morgan has also started work on a planned $52m project to create a renewable diesel and SAF feedstock storage and logistics facility at its Geismar River Terminal in Louisiana; the new capacity, which will include heated tankage, is supported by a long-term customer commitment and is expected to be in service in fourth quarter 2024.
Enterprise, Texas
Enterprise Products Partners has put the first phase of its Texas Western (TW) Products System into service, with the start of truck loading operations at its new Permian terminal in Gaines County, Texas, this past March. The terminal has some 900,000 bbl of storage capacity for gasoline and diesel and truck loading capacity of 10,000 bpd. Enterprise expects that the rest of the system, which includes terminals in New Mexico and Colorado, to be in service later in the first half of this year.
“Once completed, the TW Products System will provide supply reliability and diversity to the historically underserved gasoline and diesel markets in the southwest United States,” says AJ ‘Jim’ Teague, co-CEO of Enterprise’s general partner. “By repurposing segments of our integrated Gulf Coast midstream network, which features access to the largest refining complex in the US, representing more than 4.5m bpd of capacity, the TW Products System will provide retailers access to alternative sources of refined products, which should result in lower fuel prices for consumers in West Texas, New Mexico, Colorado and Utah.”
Enterprise has also received a deepwater port licence from the US Maritime Administration (Marad), enabling it to move forward with the development of the planned Sea Port Oil Terminal (SPOT) offshore crude oil loading terminal. The offshore platform will be located some 30 nm off the coast of Brazoria County, Texas in 115 feet (35 metres) of water and will be capable of loading 2m bbl per day. The plan includes construction of dual 36-inch bi-directional pipelines to connect the platform to the planned Oyster Creek crude oil terminal some 10 miles inland.
Use of SPOT will obviate the need for offshore loading of VLCCs by ship-to-ship transfer from smaller tankers, significantly reducing crude oil vapour and other greenhouse gas emissions, Enterprise says. “With US exports of crude oil at 4m BPD, SPOT offers a more environmentally friendly, safe, efficient and cost-effective way to deliver crude oil to global markets,” says AJ ‘Jim’ Teague, co-CEO of Enterprise’s general partner.
Howard Energy, Texas
Howard Energy Partners (HEP) last year completed a significant expansion of its Port Arthur terminal to support Diamon Green Diesel’s new renewable diesel production facility at the nearby Valero refinery. The work included a new dock, which has opened up capacity for third-party shippers. In addition, HEP has commissioned new infrastructure to handle refinery-grade and polymer-grade propylene, included pressurised storage, rail transloading spots and associated pipelines to connect the terminal to a nearby major chemical production plant.
HEP’s Port Arthur terminalnow offers almost 2m bbl (318,000 m3) of tank storage capacity, 16 miles (26 km) of rail track served by two railroads, three barge docks, two deepwater docks capable of handling Panamax vessels, and pipeline connections to local refineries and industrial plants.
Kinder Morgan, Texas
During the third quarter of 2023, Kinder Morgan commissioned a new 30,000-bbl (4,770-m3) butane sphere at its Pasadena terminal, helping meet growing butane demand for in-tank gasoline blending.
Odfjell, Texas
Odfjell Terminals US has completed the new Bay 13 at its Houston site, adding nine new tanks with a combined capacity of 32,400 m3 to increase the site’s overall capacity by 9 per cent to more than 410,000 m3. The new tank bay includes a combination of stainless steel and carbon steel tanks, designed specifically for the storage of specialty chemicals. Each tank has been engineered with positive pressure systems and full automation, underscoring Odfjell Terminals’ dedication to minimising emissions and environmental impact.
“As we continue to invest in our assets, we are proud to have developed a new tank bay that will set the standard for our business with state of the art automation and controls with enhanced operating flexibility that prioritises both environmental sustainability and operational efficiency,” says John Blanchard, CEO of Odfjell Terminals US.
Odfjell Terminals Houston has further growth potential at an undeveloped plot known as ‘The Point’, which has direct access to the Gulf of Mexico, avoiding the congested Houston Ship Channel. There is the possibility, depending on demand, for the construction of some 140,000 m3 of new tankage together with two jetties for chemical tankers of up to 45,000 dwt.
Stolthaven, US
Stolthaven Terminals has confirmed an expansion and upgrade programme for its US terminals to meet its customers’ growing needs for specialist storage and handling services. The work will include increasingly automated operations, additional specialist services for customers and the installation of new tanks, which will significantly increase Stolthaven Terminals’ current total US storage capacity of 954,491 m3.
Guy Bessant, president of Stolthaven Terminals, says: “We are pleased to be able to expand our US operations and enhance our offering to customers, especially given fluctuating market conditions. We remain committed to meeting the needs of our customers in the bulk liquid and gas industry, so we are continuing to invest in our state-of-the-art storage and handling services for these products. At the same time, we are exploring new opportunities for value-add services, both for the storage of chemicals and to support the green-energy transition.”
LATIN AMERICA
Oiltanking, Brazil
Oiltanking Logística Brasil last year established a joint venture with Grupo Edson Queiroz and Copa Energia to develop a greenfield LPG terminal in Suape, Pernambuco to meet LPG import demand in the north-eastern states of Brazil. The planned terminal will be the largest refrigerated onshore LPG storage facility in the country and the only one capable of handling fully laden very large gas carriers (VLGCs).
Development of the project is subject to anti-trust approvals; if it goes ahead as planned, operations are expected to begin in first quarter 2026.
Ultracargo, Brazil
Ultracargo is expanding operations in the north of Brazil, where it is currently planning an expansion of the Itaqui terminal and has started work on construction of a new facility in Palmeirante, Tocantins. The two sites will be linked by rail.
Excavation work at Palmeirante started in January and the terminal is expected to be completed by September with operations starting in early 2025. It will have 12 tanks for the storage of gasoline, diesel and ethanol, with a total capacity of 23,000 m3. The Palmeirante terminal will receive and ship product by road and rail, facilitating the delivery of fuels in the states of Maranhão, Tocantins, Pará and Mato Grosso.
“By building another terminal, we are continuing the strategy of transforming Ultracargo into a company of integrated logistics solutions, connecting the Brazilian coast to the interior of the country. The rail connection will ensure more safety and sustainability to the transport of liquid bulk, and is in line with our expectation of offering more efficient options to our customers”, says Ultracargo’s executive director of operations and engineering, Leopoldo Gimenes.
Odfjell, Chile
Odfjell has expansion projects in hand at its related terminals in South America, with 22,000 m3 of new carbon steel tankage due in service at the Terquim terminal in Mejillones, Chile during the first half of this year. Granel, its Brazilian affiliate, also has expansions underway at its terminals in Rio Grande and Santos.
NORTHERN EUROPE
ADPO, Belgium
ADPO is currently working on a new tank pit at its site in Kallo, Belgium, where it will install 23 new storage tanks with a total capacity of 8,100 m3; the small tanks will be used for the storage of liquid fine chemicals for use in the healthcare and life sciences markets. The new tank pit TP 26 is being built on the plot of a former warehouse, now demolished, next to the recently completed tank pit 25.
“The demand for extra storage is high due to the increased import traffic,” says Filip De Dycker, managing director of ADPO. “The high energy prices and wage costs in Europe have put the European process industry at a competitive disadvantage. The production cost is currently cheaper in America, Asia and the Middle East. Because the raw materials – which are normally transported directly between the factory and the downstream user in Europe – are now mainly imported, additional tank storage is required.”
It is expected that TP 26 will be put into service early in 2024.
ITC Rubis, Belgium
ITC Rubis began construction of tank pit 7 at its Antwerp terminal this past September. The new pit will add nearly 40,000 m3 of new tank capacity in carbon and stainless steel storage capacity, as well as a new liquid loading station for rail tanks and road tankers.
LBC, Belgium
LBC Tank Terminals is expanding its Antwerp site and will build 28 new tanks to add some 80,000 m3 of new capacity along with new loading stations for road tankers and rail tank cars. The new tankage will be dedicated to the efficient storage of base oils and chemicals to meet growing demand.
“With high energy prices, chemicals production in north-western Europe is under increasing competitive pressure, while Middle Eastern and US-based producers have an advantage with access to lower priced feedstock,” says Erik Kleine, general manager Europe at LBC. “We see a healthy and consistent growth in import of base oils and chemicals into Europe, where Antwerp is a prime location for these growing product flows.”
The project is expected to be completed and in operation in the fourth quarter of 2025.
Noord Natie, Belgium
Noord Natie’s executive board has approved the next expansion projects at its Antwerp terminal. Tank pit R will be dedicated to the storage of base oils and specialty chemicals in a series of tanks of 2,500 and 3,000 m3 capacity, with a total capacity of 27,500 m3. The tanks will be linked by dedicated lines to jetties and truck loading racks and may be equipped with vapour return, heating or insulation, depending on customer demand. Tank pit R is due in service in the first quarter of 2025.
The news came shortly after commissioning of six duplex stainless steel tanks in the new tank pit U in November 2023, adding some 36,000 m3 in new capacity.
Noord Natie also has further potential expansion projects in hand, which could take total capacity at the site to close to 580,000 m3 by 2027.
Hanseatic Energy Hub, Germany
The planned Hanseatic Energy Hub (HEH) is ready to move forward, following a final investment decision by its partners and after concluding the permitting phase. The founding partners, Partners Group, Enagás, Dow and the Buss Group have now successfully secured financing and awarded the construction contract to Técnicas Reunidas and its partners, FCC and Enka. Enagás has also increased its shareholding to 15 per cent and will be the site operator.
The future-flexible energy hub will be built at the Stade Industrial Park, near Hamburg, and is expected to involve an investment of around €1bn. HEH is due to be commissioned in 2027 and will initially serve as an import location for LNG, synthetic natural gas and liquefied bio-methane; in this phase it will replace the existing floating storage and regasification unit at the port. Subsequently, it is expected that HEH will be used for the import of green ammonia.
Mabanaft, Germany
Mabanaft is progressing its plan to establish a large-scale terminal for green energy alongside the Blumensand terminal of its subsidiary, Oiltanking Deutschland, in Hamburg. The plan was kicked off in late 2022 when Mabanaft signed an agreement with Air Products, which is planning to build a plant for the production and handling of hydrogen, for which imported green ammonia will be the feedstock.
Since then, Mabanaft has been through a voluntary hearing to establish the scope of works, and in February this year successfully completed the so-called scoping meeting, initiated by Hamburg’s Authority for Environment, Climate, Energy and Agriculture (BUKEA), in the run-up to the approval procedure for the construction of the terminal.
“Our planned ammonia import terminal on our land in the Port of Hamburg has the potential to bring significant quantities of energy products to Hamburg that can support the energy transition,” says Philipp Kroeppels, director of new energy at Mabanaft. “A voluntary environmental impact assessment along the way is very important to us. We are now getting ready to officially initiate the permit process.”
Advario, Netherlands
Advario has managed to gain a foothold in the crowded Rotterdam port space through an agreement to acquire a plot of land in the Botlek area from Aluminium & Chemie. The site will provide Advario with the opportunity to develop, build and operate a bulk liquids storage terminal designed to help its customers and partners successfully transition to cleaner energy.
“We are very pleased to have secured this strategic location in the Port of Rotterdam,” says Bas Verkooijen, Advario’s CEO. “This is another important step in the delivery of our long-term strategy to play a frontrunner role in supporting the energy transition. The site’s strategic location, ample size, and waterfront access offer us an excellent opportunity to enter one of the leading energy and chemical hubs in Europe. Advario looks to develop a new and future-focused storage terminal in close cooperation with our customers, industrial partners, and the Port of Rotterdam.”
Aluchemie will now prepare the site for handover by demolishing and removing all above- and underground structures and remediating the soil. It is aiming to finish this work by the end of 2025, after which Advario will begin construction on its terminal for future fuels.
Evos, Netherlands
This past December, Evos signed a letter of intent with Value Cargo, sister company of Value Maritime, which operates the Filtree onboard carbon dioxide capture technology. At present, Value Group uses tank containers to store the captured CO2 before it is delivered to horticultural users in the Netherlands; it is now looking for a central location in Rotterdam where it can receive, store, treat and redeliver that CO2 as the market develops.
Under the terms of the LOI, Evos will build two 2,000-m3 storage tanks for absorption liquids to accommodate Value Carbon’s growing needs. The Evos terminal in Rotterdam enjoys an advantageous proximity to Rotterdam Shortsea Terminal (RST) in the Eemshaven and deepsea terminals at the Maasvlakte. It is strategically positioned next to CO2 infrastructure, with ready access to essential steam and electricity supplies. The surrounding area hosts a cluster of experts specialising in CO2 processing, providing valuable support for the purification, liquefaction and storage of CO2, all key to realising the growth of Value Carbon.
“This partnership is a promising development that will help both Value Carbon and Evos work towards our shared sustainability goals,” says Rolf Bakker of Value Carbon. “Having a central location such as this, where the entire process of treatment, storage and redelivery can take place, offers a considerable boost in efficiency, especially given the strategic nature of the location, with easy access to road, rail and water for redelivery. As such, this move represents a significant step forward for storage and re-use of carbon.”
Impala, Netherlands
Impala Terminals Group acquired the unfinished Hartel Tank Terminal from HES in November 2023; it now plans to complete the facility, to be renamed Impala Energy Infrastructure Netherlands, by the end of 2025. The finished terminal will have a total capacity of some 1.3m m3 for liquid energy products. The high specification and connectivity of the terminal will provide maximum flexibility for the users of the facility. Importantly, the terminal will be capable of storing a variety of biofuel products, helping to facilitate the energy transition for the region.
Work on the new terminal had been put on hold at the end of 2022 following delays caused by the Covid-19 pandemic, which increased costs.
“This is an excellent development for Impala, particularly as it will provide our strategic customers with a strong and sustainable asset located within the Port of Rotterdam in the major trading hub of ARA,” said Sjoerd Bazen, CEO of Impala Energy Infrastructure, at the time of the transaction. “We look forward to developing our business in the region in collaboration with different stakeholders and specifically the Port of Rotterdam Authority.”
The deal was also seen as significant by the port itself, with Boudewijn Siemons, CEO of the Port of Rotterdam Authority, saying: “The Port Authority Rotterdam is pleased that Impala has purchased the terminal asset and that construction work will be completed. With this transaction, the company is making a lasting commitment to the port and is adding a brand-new facility for storing a wide range of bulk liquid energy products. This provides a new future for the terminal after a bankruptcy that has been difficult for all parties concerned, particularly the employees.”
Koole, Netherlands
Koole Tankstorage Botlek is planning to construct a second distillation tower at its site by the end of 2024, to increase production capacity for sustainable aviation fuel (SAF) by the distillation of hydrotreated vegetable oil (HVO).
“With this project we will increase our production capacity from 130,000 tonnes to almost half a million tons of SAF feedstock per year. All of that simply here in the Botlek,” says Jeroen Kensmil, team leader for the petroleum industrial distillation (PID) unit at the terminal.
Koole Terminals has also lined up another major customer for its planned green ammonia terminal in Rotterdam, signing a letter of intent with Hyphen Hydrogen Energy. Namibia-based Hyphen has, over the past year, lined up a number of MoUs with potential customers in Europe and is targeting the supply of up to 750,000 tpa beginning in 2028.
LBC, Netherlands
LBC Tank Terminal is to expand its Rotterdam terminal, adding 98,000 m3 of new tankage to take overall capacity to 280,000 m3 by first quarter 2026. This will be the third phase of development of the site, which has already seen new berths, loading bays and tankage added.
“As we move into the next phase, I am excited about the opportunities ahead of us,” says Erik Kleine, general manager, Europe at LBC. “The commitment and hard work of our team has been the driving force behind our journey thus far, and I take immense pride in our achievements. LBC Rotterdam’s growth is a testament to the collective success of dedicated team players enthusiastic about our role in shaping a more sustainable future, and I look forward to the continued progress on this important path.”
LBC Tank Terminal has also begun a collaboration with Shell Chemicals for the storage of pyrolysis oil derived from waste plastics at the Rotterdam terminal. “Shell is excited to start this collaboration with LBC; the five-year agreement supports our strategy to supply our customers with more circular chemicals and to help the development of a viable plastic circular economy in Europe”, says Liz Allen, general manager of Shell Chemicals Business Management Northwest Europe. “This dedicated storage will help grow the market for pyrolysis oil by delivering much needed capacity which will enable Shell to aggregate and process pyrolysis oil from multiple suppliers and improve value chain flexibility.”
Frank Erkelens, CEO of LBC Tank Terminals, adds: “This collaboration reiterates LBC’s dedication to making impact by driving positive change within the industry. Storage solutions play a crucial role in advancing and supporting long-term growth in the circular chemicals value chain, and we look forward to combining forces with Shell in making significant progress towards achieving a carbon-neutral future.”
LBC had earlier signed a similar partnership with Vitol, which is planning to supply pyrolysis oil to the local petrochemical industry.
Vesta, Netherlands
Vesta Terminals has appointed Proton Ventures to complete FEED work on the re-purposing of two 30,000-m3 ammonia storage tanks at its facility in Vlissingen, the Netherlands. The work forms part of a larger plan to refurbish and expand the existing terminal with the aim of creating the first green ammonia hub in north-west Europe. This will include installation of infrastructure for loading and unloading VLGCs, rail tank cars and barges as well as a cracker to convert green ammonia back to hydrogen and links to the Dutch hydrogen pipeline network. A second phase is envisaged that would double capacity.
“As Vesta, we are proud to push forward this project,” says Daan Schutte, CCO of Vesta Terminals. “With the help of Proton Ventures, we are taking important steps towards being a frontrunner in the renewable energy transition.”
Vopak, Netherlands
Vopak commissioned 16 new storage tanks at its Vlaardingen terminal in Rotterdam in second quarter 2023, adding 64,000 m3 of capacity for waste-based feedstocks for the production of biodiesel and sustainable aviation fuel (SAF) under a long-term deal with Shell, which will use the feedstocks at its new biorefinery to produce SAF and renewable diesel.
Vopak Terminal Vlaardingen is strategically located in the Port of Rotterdam and is well-connected for logistics via vessels, barges, trucks, and trains. The terminal has extensive experience in storing products such as used cooking oil and tallow. Work began on the €90m project to repurpose part of the terminal for waste-based feedstocks began in 2021. Vopak says the project is in line with its strategic goal “to accelerate towards new energy by developing infrastructure solutions that support customers and society in decarbonisation”.
Inter Terminals, Sweden
Inter Terminals Sweden has put a carbon fibre unit into service at its facility in Malmö, reducing the emission of vapours from the handling and storage of bitumen at the site. “This is an investment that we have chosen to make together with our customers in order to prevent and reduce the risk of any odour in the immediate area around Inter Terminals’ terminal in Malmö that may arise in connection with the handling of bitumen,” says Jonas Taserud, technical manager at Inter Terminals Sweden.
Inter Terminals Sweden is also expanding its aviation fuel facility in the Port of Gävle by converting tanks from conventional fossil heating oil storage to a blending and storage facility for Sustainable Aviation Fuel (SAF), in collaboration with the Scandinavian airline SAS, which has an ambitious target for SAF use by 2030. The new tankage will be ready for operation this summer.
“Our demand for SAF is significant, but there is a need for investments throughout the entire value chain to enable us to transition to more sustainable flights,” says Ann-Sofie Hörlin, had of sustainability at SAS. “That’s why it’s important for us to partner up and have a proactive approach to ensure a sufficient and efficient SAF value chain. SAS use of SAF today is low in comparison to our future demand and needs to increase significantly as the usages of SAF directly correlates with lower flight emissions.”
Navigator Terminals, UK
Navigator Terminals has signed an MoU with Alfanar, a global developer of renewables projects, envisaging the development of the North Tees rail terminal for the receipt, storage and handling of up to 1m tonnes of non-recyclable waste feedstocks for Alfanar’s Lighthouse Green Fuels plant at Port Clarence, which will produce the UK’s first sustainable aviation fuel (SAF) from waste; the plan includes an SAF handling terminal at the North Tees dockside. Construction of the Lighthouse plant is due to start this year with the unit coming onstream in 2028; it is projected to produce around 10 per cent of the UK’s SAF target in 2030.
Navigator Terminals’ North Tees complex is a road fuel and crude oil storage facility with the region’s only deep-water jetty designed for petrochemicals, direct pipeline connecting to the North Sea and modern rail distribution facilities. Finished SAF will be exported via ship at the North Tees waterside complex. SAF may also be exported via rail or truck at Navigator’s inland North Tees rail terminal.
“Navigator Terminals is committed to playing a leading role in delivering net zero for the UK; as the UK’s leading transport, storage and handling experts, we operate a network of strategically located terminals,” says Jason Hornsby, CEO of Navigator Terminals. “We have supported Alfanar’s progress in its thinking around the Lighthouse SAF project for over 12 months and now are pleased to announce our formal partnership.”
Stolthaven, UK
Stolthaven Terminals has completed renovation and upgrade work on the jetty at its Dagenham facility in the UK. Work started in 2022, with the aim of improving discharge rates and turnaround times for vessels, enhancing safety and reducing environmental impact and, ultimately, delivering a superior service to customers. The main jetty structure was completed in October 2022 and the final engineering and mechanical work was finalised in the first quarter this year.
Steve Walker, general manager of the Dagenham terminal, says: “This is a major milestone for Dagenham and for Stolthaven Terminals. It has been a great team effort to coordinate this project and keep the berth operational for our customers during these complex works.”
SOUTHERN EUROPE
Alkion, Portugal
Alkion Terminal Lisbon began handling bitumen in April 2023, in response to an expression of interest by an existing customer. Bitumen is an important product, as an essential material for road construction, repairs and civil works. The bitumen that is being stored at Alkion Terminal Lisbon is used all across Portugal.
“Bitumen must be stored at a high temperature, otherwise it will turn solid inside of the tank,” notes terminal manager Diogo Godinho. “We keep the bitumen at a temperature of more or less 160°C,” which means that bitumen storage requires specific infrastructure. “We invested in a new loading bay, thermal insulation of the tanks, heating equipment and new reception and expedition lines among other things.”
Alkion Terminal Lisbon is now looking into making the new bitumen storage location more sustainable: “We generate energy with solar panels at the terminal. We are currently looking into the option of powering our bitumen heaters, which currently run on propane, with electricity, meaning we could run them with the energy we generate ourselves. This would lower our CO2 emissions as well as being more cost effective, which adds value for our customers.”
Exolum, Spain
Exolum has been appointed by the Port Authority of Gijón in north-west Spain to manage the 67,000-m3 bulk liquids storage terminal at La Osa pier. The 15-year contract also involves Exolum investing €3m to connect the site to its own terminal in the port, and to modernise and adapt the infrastructure to provide a wider range of logistics services. This will focus in particular with the energy transition and decarbonisation.
The port’s terminal has 12 tanks plus a service station, with extensive vessel, road tanker and, eventually, train interconnection options. The port of Gijón is a key location for logistics operations owing to the quantity and quality of its connections with the region’s industrial hub, and the contract gives Exolum an opportunity to invest in a larger number of tanks to transport and store new energy vectors, such as biofuel, eco-fuel, hydrogen, ammonia and methanol.
“At Exolum, we are committed to investing in Spain and, particularly, to developing logistics investments at ports that support the energy transition,” says Jorge Guillén, Exolum’s Spain Region Lead. “The port of Gijón, therefore, represents a great opportunity to develop a larger volume of logistics operations and to boost the diversification of our business, thus expanding our services to new energy vectors that are relevant for the modernisation, competitiveness and sustainability of the industrial infrastructure in Asturias.”
EAST ASIA
Vopak, China
Vopak has agreed to go forward with a 20,000-m3 expansion of the Haiteng terminal in China, along with new pipeline connections to its customer’s cracker; this project is underpinned by a 20-year commercial agreement and is due for commissioning in second quarter 2026.
Stolthaven, Taiwan
Work is underway on the Stolthaven Revivegen Kaohsiung Terminal (SHRVK) in Kaohsiung, a joint venture between Stolthaven Terminals and Revivegen Environmental Technology. The terminal, due to be commissioned this year, is designed to meet growing customer demand for high-quality bulk liquid storage in the region and to introduce more international trade to Taiwan. It can also help support the transition to more sustainable energy and fuel alternatives, including ammonia for local power generation and green methanol for greener marine bunker fuel.
The first phase of development includes a logistics facility with warehousing and drumming facilities, to be followed by the first 48,000 m3 of tank storage. Further tank construction will form a subsequent phase.
“Ultimately, SHRVK will be a one stop shop for customers, providing integrated storage, drumming, warehousing, and distribution solutions for chemical and bulk specialty liquid customers,” says Mark Lim, commercial manager of Stolthaven Singapore and business development manager, Asia.
SOUTH & SOUTH-EAST ASIA
BW, India
BW LPG has signed a joint venture agreement with Confidence Petroleum to establish a 50/50 company, BW Confidence Enterprise, to develop and operate an onshore LPG import terminal in Jawaharlal Nehru Port in Navi Mumbai, India. The joint venture will collaborate with BW LPG’s international trading operation and with its India shipping subsidiary.
As part of the deal, BW LPG will invest some $30m in Confidence Petroleum through an allotment of shares, giving BW LPG an 8.5 per cent shareholding in Confidence; BW LPG has an option to increase its shareholding. The capital injection will assist Confidence in its planned expansion of downstream assets, which currently number some 60 LPG bottling and blending plants and more than 200 autogas fuelling stations.
“These agreements represent a significant milestone in our commitment to grow in India, and underscore our confidence in the potential of the domestic LPG market as well as our JV partners,” says Kristian Sørensen, CEO of BW LPG. “We have generated strong and stable returns from our Indian subsidiary, and we are ready to advance our growth trajectory along the value chain, to generate even better returns for our shareholders.”
Dialog, Malaysia
Dialog Group Bhd began work on expanding its third terminal at Tanjung Langsat in March 2023; the new tankage will offer some 24,000 m3 of capacity for sustainable and renewable fuel products. The development is Dialog’s response to growing investor interest in low-carbon fuel alternatives; the company says that bulk fuel storage terminals have an opportunity to become principal facilitators of the energy transition by helping to develop new low-carbon lines of products and services.
Dialog Terminals Langsat 3 currently offers some 205,000 m3 of capacity, serving short to medium-term energy traders and multinational companies storing energy products. It is located adjacent to Dialog’s other two terminals at Tanjung Langsat and the new tankage is expected to handle raw materials such as cooking oil, tallow, pyrolysis oil and palm oil mill effluent, as well as biodiesel containing used cooking oil methyl ester (UCOME) and fatty acids methyl ester (FAME).
“This is just the first step in Dialog Terminals Langsat 3’s plan to create an ecosystem for renewable fuels with potential plans in the future to include integration and collaboration with pre-treatment or hydrotreat plants, thereby creating synergy to blend renewable and conventional fuel,” says Tan Sri Dr Ngau Boon Keat, executive chairman of Dialog Group.
The new tankage is due for completion by the end of this year.
JPTT, Singapore
JPTT (Jurong Port Tank Terminals) completed phase 2 expansion of its site in Singapore in second quarter 2023, taking total capacity to some 580,000 m3 for clean petroleum products. The work involved construction of three new tank pits, adding 330,000 m3 of capacity, along with an upgrade to the terminal’s infrastructure. All tankage at the site has now been fully leased, JPTT says.
“The expansion of our state-of-the-art liquid bulk terminal is a significant milestone,” says Francis Nyan, JPTT chairman. “Since starting operations in 2019, JPTT has supported the needs of our customers in the clean petroleum trading market and fortified Singapore’s position as a global energy and chemicals hub. With our partner Advario, we remain confident that JPTT’s expansion strengthens the integrated terminal network and enhances our overall value offering to the market, leveraging each other’s expertise and length of experience.”
JPTT is a 60/40 joint venture between Jurong Port and Advario.
Vopak, Singapore
Vopak commissioned 40,000 m3 of tankage at its Sebarok terminal in Singapore, dedicated to blending biofuels into marine fuels, in February this year. The work, which is underpinned by a customer commitment, also involved the conversion of existing pipework. The Sebarok terminal is close to Singapore’s eastern anchorage, where a lot of bunkering takes place.
“Our vision for Sebarok terminal is to be a sustainable multi-fuels hub to strengthen Singapore’s position as the top bunkering hub,” says Rob Boudestijn, president of Vopak’s Singapore business unit. “As a storage and critical infrastructure services provider, this development can facilitate the entry of more biofuels companies to diversify the supply chain for marine biofuels and accelerate the decarbonisation of the shipping industry.”
The Sebarok terminal now has a total capacity of 1.34m m3 across 83 tanks.
AUSTRALASIA
Impala, Australia
Impala Terminals has formally inaugurated its first energy import, storage and distribution terminal in Australia. The Kwinana Bay site in Western Australia, which has been operating since October 2022, offers 225,000 m3 of storage capacity in 11 liquids and one butane tank, and has an express lane for diesel loadings to road tankers. It is currently handling diesel and gasoline, with butane for blending, supported by an anchor customer.
“We are very excited to be here, not only as an asset owner and operator, but also as a company committed to further investing into Western Australia infrastructure,” says Sjoerd Bazen, CEO of Impala Terminals Energy Infrastructure. “We have been impressed by the support and collaboration with the local government, the Fremantle Port Authority and other key stakeholders and look forward to building on these relationships.”
Stolthaven, Australia
Stolthaven Terminals last year signed an MoU with the Port of Melbourne and a number of shipping companies to explore the commercial feasibility of setting up a green methanol bunkering hub in the port, using green methanol shipped from plants in Victoria and Tasmania.
“Stolthaven Terminals is pleased to support this project – as well as many others worldwide – that enable the transition to greener energy alternatives,” says Ben Serong, general manager of Stolthaven Terminals in Australia. “The scope of activities involved under this MoU will evolve as the collaboration progresses and the parties develop a clearer understanding of how our respective expertise can be combined on this potential project.”
“Decarbonisation of the maritime industry is really gaining pace,” adds Saul Cannon, CEO of the Port of Melbourne. “As Australia’s largest container port with around 3,000 ships visiting annually, it makes sense that we look at ways to work together with customers, service providers and producers to understand the needs of the market.”
Stolthaven, New Zealand
Stolthaven Terminals last year commissioned two new 8,100-m3 storage tanks at its Mount Manganui site in New Zealand. The tanks were built to store very low sulphur fuel oil (VLSFO) for one of its customers and were built by Culham Engineering in Whangarei. The tanks were delivered to Mount Manganui by sea, involving a five-day, 290-nautical mile trip.
Stolthaven’s customer plans to use the IMO 2020-compliant VLSFO to replace heavy fuel oil bunkering at the nearby Port of Tauranga. “The Mount Maunganui terminal is perfectly located to serve the port,” say Brent Metson, general manager of the Mount Manganui terminal.
