oil terminals: strategic positioning in uncertain … positioning in uncertain markets key messages...

Oil Terminals: strategic positioning in uncertain markets

Platts 6th Annual European Oil Storage Conference, 7 December 2012

Walter Moone, Commercial Director, Vopak Netherlands

Strategic positioning in uncertain markets Key messages

2

Focus on quality and sustainability of primary

process essential for long term success

Strategic positioning on a diversified portfolio of

specialised terminals, with focus on key markets

Bulk liquid markets subject to many changes in

2012 - importance of efficient trading and

distribution hubs

Platts 6th European Oil Storage Conference 21 January 2013

3

Solid long-term trends Growing energy demand and supply and demand imbalances


Growing energy demand Growing imbalances

▪ Growing energy demand by over one-third

to 2035, mainly from non-OECD countries ▪ Growing supply and demand imbalances

require additional tank storage infrastructure

Economic turmoil

4

Topics 2012

Iraq and tight oil Renewables Capacity

expansion Regulation



5







distribution hubs


Vopak Netherlands One division

6 Platts 6th European Oil Storage Conference 21 January 2013

Vopak Netherlands One

Customer Leadership Operational Excellence Growth Leadership

Working in realising

excellent service levels

tailored to client/market

needs

Emphasis on

professionalism and cost

competitiveness

Optimised portfolio of

terminals, each focusing on

key markets

Focused strategy in place Disciplined execution existing business and projects


8

Key markets Trends Europe

Black Petroleum

Chemicals Biofuels & Vegoils Clean Petroleum

FSU crude exports

Upgrades of

refineries

Continued high level

of activity at

Rotterdam hub

Increased

competition for

storage in Estonia

Rationalization

NWE imports

subdued but

resilient

Increased

competition for

storage in the ARA

region

Key producer,

consumer and

importer of biofuels

Large vegoils

importer

Rotterdam is

biofuels and vegoils

hub

Closure of refineries

Gasoline surplus

increasing – focus

on Amsterdam

Diesel deficit to

grow – focus on

Rotterdam and

Antwerp


Fuel oil Rotterdam: pivotal fuel oil hub for North West Europe

9

From Baltic ports: 17.4 NL production: 8.5

EU: 12

Other countries: 2.5

Total Russian exports 60 MT

Brazil: 1.2

USA: 1.3

Unit: Million Tons Source: IEA, 2011

Singapore: 10.4

(39 VLCC’s)

Other countries: 0.5

Belgium: 8

NW E ex. ARA: 4.6

Other EU: 3.7

USA: 2.2

Local Bunker demand: 13

NL NL

Supply (Import + production) Demand (Export + Consumption)


▪ Class III storage capacity is managing a

large and complex flow of heavy fuel oil

mainly from Baltic

▪ ARA acting as a hub to blend and redistribute

fuel oil in combination with supplying local

bunker markets

Vopak Europoort Fuel Oil Hub


▪ Increased need to handle

complex Heavy Fuel Oils

▪ High viscosity

▪ Blending

▪ Fast turnaround of VLCC’s

▪ Reliable barge loading

▪ Vapour control

Clean Petroleum Products Global flows

11

Source: WoodMackenzie

Intra

region

19 Mt

Gasoline Middle Distillates


▪ ARA has important role as long-haul export

location. Amsterdam as main hub. ▪ ARA import location for long haul cargo’s and

Intra regional trade.

ARA

* 2011 Diesel/Gasoil Trade

Vopak Amsterdam Westpoort Gasoline export and Mid Distillates import hub


▪ Efficient make and break bulk

services

▪ Blending

▪ Wide range of Fuel blending

components

▪ Fast turnaround of vessels

▪ Flexibility

▪ Efficient ICE deliveries


13







distribution hubs


Full compliance expected High level no longer good enough

• The storage industry is responsible

for own performance.

• Vopak operations is based on local

legislation and Vopak standards

• Transparency to stakeholders on

integrity of operations

Royal Vopak

Westerlaan 10 Tel: +31 10 4002911

3016 CK Rotterdam Fax: +31 10 4139829

The Netherlands www.vopak.com

oil terminals: strategic positioning in uncertain … positioning in uncertain markets key messages...

Documents