Storage Terminal News Briefs: Oil, refined fuels gluts continue to drive demand for storage

April 13, 2016

Here are the latest news and announcements affecting crude oil and refined product storage terminal operations.

1. Demand for storage is reaching a fever pitch with tank capacity and utilization at all-time highs, but the storage market is volatile and at the same time could be barreling toward oversupply, according to Hellenic Shipping News Worldwide. The US crude market is in contango, meaning crude is worth less for delivery now than later, which encourages construction of new storage capacity. However, the situation could change virtually overnight if production shrinks.

2. A recent report from Reuters stated that the Thames Oilport terminal near London, England opened after nearly four years of development, at a time a global oil glut and a collapse in fuel prices is making storage an attractive investment. The refined fuels storage terminal is expected to be filled to capacity in short order.  

3. As the third largest oil storage and petroleum products trading center and second largest bunkering port in the world after Singapore, Fujairah is still growing at an impressive rate, as it aims to become the leading global oil hub, according to Energy Global’s Hydrocarbon Engineering. In 2015, the Port of Fujairah reached a new record of 50 million tonnes of refined products throughput.

4. A year ago three different companies were proposing to build crude oil storage facilities at Port of Grays Harbor in Washington State. The number is apparently down to one, according to a report in The Daily World. US Development Group, parent company for Grays Harbor Rail Terminal, notified the Port that it was terminating a lease option it had with the Port for property near Bowerman Basin. Renewable Energy Group also announced it was dropping an oil storage initiative. That leaves Westway Terminals Inc, which is proposing five crude oil storage tanks, each able to hold more than 8 million gallons of crude oil, as the final permit applicant.