Fujairah storage tank project half way complete

On the coast of the United Arab Emirates, there is change afoot. The region is undergoing rapid regeneration, thanks to the global oil storage industry, and an increased production in the area of crude oil.

In Fujairah, one of the seven emirates that make up the U.A.E, vast building and construction work on a petroleum regeneration and processing plant is over fifty percent complete, and is on track to be finished on schedule.

Emirates National Oil Company (ENOC), is the parent company of Cylingas. It is Cylingas that signed an agreement with Pyramid Engineering over a year ago to begin working on the Fujairah project and therefore, see it through to completion.

Pyramid Engineering are responsible for the design, the fabrication, the installation, the inspection, the testing and the commissioning of twenty storage tanks. These initial storage tanks are positioned above ground.

The company will also be held responsible for all associated piping systems within the new plant terminal and connecting pipelines to the port of Fujairah. Fujairah is the only emirate that has a coastline solely on the Gulf of Oman and none on the Persian Gulf, putting it in a prime location.

Saif Al Falasi, group CEO of Emirates National Oil Company, says: ‘The significant progress achieved by Cylingas underlines our commitment to excellence and on-schedule delivery.’

The terminal has a capacity of 101,000 m3 and the plants has a processing capacity of 7,500 BDP. With Saudi Arabia increasing their daily oil production over the next two years, this new plant will provide the United Arab Emirates with a powerful tool.

Each of the individual tanks at Fujairah will come complete with aluminium domed roofs. As well as these domes, the tanks will be able to store naphtha, diesel, gas oil, fuel oil and kerosene as well as slop and precious water.

Cylingas’ general manager Raed Ali also commented on the progress of the venture when speaking to Tank Storage Magazine:

‘Reaching this milestone underlines our experience and competencies to undertake large-scale EPC project that demand extensive mechanical and piping work.’

One surprising factor in the success of the plant’s construction – titled ‘Pyramid Engineering job’ – is that it is actually Cylingas’ first independent project. An impressive thing to achieve especially considering the scale of the work involved.

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World Oil Demand Grows

OPEC – the Organization of the Petroleum Exporting Countries – and its members have recently made some positive steps in growing the international oil market.

Together, they have committed to making the industry a more stable and balanced one by signing an agreement to continue on with their current production ceiling – around thirty million barrels per day.

Through the agreement, member countries have confirmed their commitment to maintaining an oil market that is both stable and balanced, ensuring appropriate price levels that keep both producers and consumers happy.

The biggest observation from the 167th OPEC conference which recently took place in Vienna, was that the market is ‘comfortably supplied’.

This is thanks to the increase in stocks but also the surplus of oil around the globe including both OECD – the Organisation for Economic Co-operation and Development – and non-OECD countries.

At the conference, it was also noted that world oil demand is likely to increase by the end of this year and grow again into 2016.

This growth will be driven mainly by those countries that are not members of the OECD. Another point to consider is the rapid decline in oil prices we saw at the end of 2014 and the start of this year. This was caused by an oversupply and speculation across the industry but has now thankfully abated with prices consequently rising slightly in the past few months.

Wood Mackenzie – leading market analysis consultants – place the current OPEC crude output at approximately 500,000 barrels above the 30 million ceiling per day. This is mainly due to countries like Saudi Arabia and Iraq increasing their production volume.

‘The shifting fundamentals of strong oil demand growth and weakening supply gains during 2015 have supported prices at higher levels than those seen in early 2015. For 2016, we expect world oil demand growth that surpasses supply, leading to moderately higher prices.’

Industry forecasters expect that between both countries, a combined production is likely to be an average year-on-year increase of 720,000 barrels per day. This will position OPEC crude production significantly above the aforementioned production ceiling of 30 million barrels per day.

As the Arab countries continue to grow their oil supplies, it is a slightly different story in North America. Since November 2014, the lower oil price has affected US production dramatically with oil rig count falling to below half of what it had been previously.

With the expected increase in oil demand it is expected that more oil storage solutions will be necessary.

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The world is becoming a smaller place, with a growing population land scarcity is becoming an issue.

In Singapore there has been a demand for storage space that has never really gone away. However, being an island with only so much land mass, the lack of available options is limiting the possibility of new storage tank projects.

The fact that in one area – Jurong – space is becoming an issue, has caused many problems and has affected construction, despite the relaxation of conducting business in the country as a whole.

Singapore’s neighbours, – countries such as Malaysia and Indonesia are experiencing high levels of growth when it comes to storage projects.

With any kind of construction, if you can’t go sideways, you either go up, or go down something Manhattan dwellers discovered in the twentieth century.

Underground storage tanks are an appealing alternative. They allow for storage of crude oil and other products on a much larger scale, which in turn allows the natural beauty of Singapore’s rural areas to be preserved and to be used in other ways.

Another benefit of such underground storage tanks, is that they provide flexibility and are a safe and secure option.

To build on the range of options available for traditional above ground storage in Singapore, Jurong Consultants have set a plan in motion. In collaboration with local businesses, they have come up with an suitable alternative to the concept of storing bulk liquid on floating tankers around the coast line by using concrete barges to store high levels of petrochemicals.

The man at Jurong Consultants taking on the huge project is Tan Wooi Leong, the company’s vice president. He states that there is currently a lesser focus on developing storage projects on Jurong Island, and this needs to change.

In an interview with Tank Storage Magazine Mr Wooi Leong says: ‘There has been major emphasis towards growing manufacturing plants that create more added value to the economy than surface storage projects currently on Jurong Island.’

‘The existing oil trading hub status and platform available makes it very attractive to build storage in Singapore. Nevertheless, we are building underground storage caverns for hydrocarbons storage and creating new innovations in very large floating structures to store petrochemicals products.’

‘Our definition of the floating storage is based on a different method that stores petrochemical products in concrete barges floating structures. We have developed this concept jointly with local institutions to position innovative products for petrochemical storage in Singapore.’

Of course, there are many problems that come with storing petrochemicals on water, such as leaks and an impact on the natural environment. Hopefully Jurong Consultants will factor in all these potential issues when putting the final designs and plan together, allowing the Singapore oil storage industry to thrive, and catch up with its neighbours.

If you’re looking for storage tank suppliers, check out our recommendations here.

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BP Rotterdam storage terminal sold

BP Raffinaderij Rotterdam has reached a definite agreement to sell its Pernis site. The buyer of the site is Koole Terminals. Koole is an independent international storage and transport company specialising in vegetable oils and fats, oleochemicals, waxes, biodiesel, base oils, non-hazardous chemicals and minerals.

The transaction between the two global brands mainly encompasses BP’s Dutch storage terminal with a total capacity of around 200.000 cubic meters.

“We are very pleased with the transaction; it allows the refinery to continue pursuing its strategic vision, which is to focus on the activities in the Europoort refinery as margins are currently under pressure in the European market,” stated Emilio Marin, Director of the BP Raffinaderij Rotterdam.

Thanks to the deal Koole now also own a tank truck loading facility and a jetty. Both are conveniently positioned directly opposite one of Koole Terminals’ existing sites in Rotterdam.

The site is connected through a pipeline with BP’s refinery in Europoort and BP will partly lease back the storage and truck loading rack capacity under long-term agreements.

Those worried about the risk of mass unemployment and job losses should fear not. The sale – thankfully – does not affect the personnel currently working at the site.

Early reports have confirmed that the sixteen employees involved will remain employed either at BP’s refinery in Europoort or – as a secondary option – will be allocated to the new owner. Trade Unions have been involved in discussion to ensure that employees are treated fairly and legally.

John Kraakman, CEO of Koole Terminals is also pleased with the transaction: “The expansion of Koole Terminals through the acquisition of BP’s site in Pernis is in line with our ongoing strategy to grow together with our customers, in this case regarding storage and distribution of petrol and diesel. Especially the safe and efficient 24-hours per day truck-loading facility in the Rotterdam harbour represents an important widening of our service offering.

He added, “We are not only acquiring additional storage capacity but also further available land supporting our future expansion plans. Overall, the transaction substantiates our long-standing relationship with BP.”

The refinery has had several owners, such as Texaco and Nerefco . Nerefco was a joint venture in which various oil companies participated and which in 2007 was owned entirely by BP. Later the name Nerefco (Netherlands Refining Company) exchanged for that of BP.

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Millions of barrels of storage allocated to China for future contracts

China has decided to show its commitment to the future of its oil industry by investing heavily in the safe storage of crude oil. A total of 34 million barrels of space is to be allocated along the country’s eastern coast allowing ease of access and easy transportation around the world.

The aim is that by having this space readily available, future contracts are more likely to be confirmed, boosting China’s economy and building trade relations.

The proposed amount of this space has only recently been revealed by Shanghai’s International Energy Exchange (INE). In a report accessible to the public. The Shanghai International Energy Exchange Corporation, or INE, is a global exchange that operates regulated derivative marketplaces in crude oil, natural gas and other petrochemical products and provides clearing, delivery, information distribution and technology services.

The INE is this year aiming to finalise agreements and contracts with a group of prime located ports and companies to allocate approximately 5.35 million m3 of storage.

This storage will be available for use by those who have secured future contracts, that is according to Platts, a leading global provider of energy, petrochemicals, metals and agriculture information, and a premier source of benchmark price assessments for those commodity markets. Since 1909, Platts has provided information and insights that help customers make sound trading and business decisions and enable the markets to perform with greater transparency and efficiency.

Then of the total amount available, 2.3 million m3 is will be released when the contract is launched.

There are five locations along the eastern Chinese coast set to benefit from the investment. These are located in Zhanjiang, part of the southern Guangdong province. Guangdong is a province on the South China Sea coast. It surpassed Henan and Sichuan to become the most populous province in China in January 2005, registering 79.1 million permanent residents and 31 million migrants.

The remaining facilities will be spread along the coast at Ningbo in Zhejiang, Rizhao in Shangdong, Dalian in Liaoning and Shanghai, allowing the majority of coastal China to benefit from this investment.

In other storage news, it has been confirmed that in the UK, Dana Petroleum’s flagship £1bn Western Isles oil field development in the North Sea will be complete two years later than anticipated.

The production was supposed to start in 2015 but now, Dana is predicting that the first oil to flow will not happen until the year 2017.

The development is roughly 100 miles east of Shetland in the Harris and Barra fields. The cause of the delay has been put down to construction of a floating production, storage and offloading vessel. This is currently being produced in China and is said to be taking longer than expected.

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A regional center for educational and economical development

Nestled in the scenic Lost River Valley of West Virginia’s Potomac Highlands, the Lost River Artisans Cooperative was founded in 1988.

Over the last two decades our name has changed from the Lost River General Store Association to the Lost River Craft Cooperative.

In 2009 we adopted the name Lost River Artisans Cooperative, which we believe better represents our membership, but despite the change, our purpose remains constant: to engage the community in the artistic process, foster appreciation for the production and value of handmade objects through instruction, demonstration and display, and provide a marketing center for regional artists and craftspeople.

During our season, which lasts from mid-April until early December, visitors to the cooperative will often find artisans demonstrating their talents and skills on the grounds around our cooperative’s home, the historic Harper Barn in Lost River.

A series of classes is also planned for this year to provide visitors a new opportuntity to learn first-hand about heritage crafts and contemporary arts.

Our sister organization, the Lost River Educational Foundation, operates the Lost River Museum on the lower level of the barn, which features the largest display of Lost River Valley artifacts and history found in the Highlands.

Many symposiums and tours are planned throughout the year each under expert guidance and instructions. Award-winning, locally produced films and music are also presented from time to time.

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