Oiltanking GmbH has agreed to purchase a stake in Galana Mozambique Ltd, and Oiltanking Ghent NV has signed a long-term agreement with INEOS Europe AG for the storage and handling of INEOS’ cracker feedstock, naphtha, and gas condensate at the Oiltanking Ghent, Belgium, facility and to supply the INEOS plant in Cologne, Germany.
The transaction with Galana Mozambique Ltd gives Oiltanking an indirect shareholding in two terminal projects for the storage and handling of bulk petroleum and chemical products in the Mozambique ports of Matola and Beira.
The terminal in Matola is currently under construction and will be operational in the second quarter of 2016. Its initial capacity will be 51,000 cbm with land available for further development. The terminal has access to a jetty with a draft of 11 meters. In addition, the terminal will be equipped with rail- and truck-loading facilities to serve southern Mozambique and neighboring countries like Swaziland, Zimbabwe, Botswana, and the northern provinces of South Africa.
Another terminal is slated to be built in Beira, located centrally along the Mozambican coast. The terminal, which is currently at the development stage, will facilitate imports into the central part of Mozambique, Zimbabwe, Malawi, Zambia, and the Democratic Republic of Congo.
Following the acquisition, which was expected to be completed by mid-December, Oiltanking will advance the development and construction of the terminal in Matola. After completion, the terminal will be operated by Oiltanking and branded as Oiltanking Mozambique.
Mozambique is one of the main transit hubs for petroleum products on Africa’s east coast. The present transaction will further strengthen Oiltanking’s presence in Africa and enhance its ability to serve new market segments on the east coast of the continent.
In the INEOS Europe deal, Oiltanking Ghent will dedicate approx. 15% of its total existing capacity to this partnership. As part of the agreement, Oiltanking Ghent will make substantial investments to ensure the highest level of operational excellence, including facilities such as vapor return lines, internal floating roofs and vapor recovery units.
The cracker feedstock will arrive at the Oiltanking Ghent terminal on seagoing vessels for intermediate storage. From there, it will be shipped by barges via the Rhine to the INEOS facility in Cologne according to needs. This storage and handling solution enables INEOS to optimize the related process.
Naphtha and gas condensate are feedstocks used in a petrochemical process in which hydrocarbon fractions are broken down into smaller hydrocarbons in order to produce lighter alkenes (olefins), such as ethylene, propylene, and others. In other words, processing naphtha and gas condensate produces the building blocks for plastics (PET, PVC, etc), rubbers, etc.
INEOS Group AG is one of the world’s leading chemical companies, a global manufacturer of petrochemicals, specialty chemicals and oil products. The group comprises 15 businesses, each with a major chemical company heritage. Its production network spans 65 sites in 16 countries around the world.