18-03-14 ARA Tank Storage Market – Capacity

Drivers of ARA Tank Storage Markets

The tank terminal market for storing oil products boomed from 2008 till 2011 but has undergone some major changes in recent years. Current signs are that the hey-days are over and that the market is normalizing. However, looking at expected changes in global fundamentals the tank terminal market is up for a rough ride indeed!

PJK International has made a detailed study of the tank terminal market. It focuses on the central issue of profitability for storage companies in the ARA-region.

  • How will profit potential evolve in the medium term for tank storage companies?
  • How will the tank storage demand per product group change?
  • How will these tank storage drivers impact storage rates?
Apart from demand side issues, which have been studied in previous chapters, supply-side issues are also of great importance. Recent capacity additions, capacity under construction and expansion plans have been mapped out and present a clear picture of where the market is heading. Capacity additions have been sorted per year in order to asses when and how much capacity will hit the market going forward. Furthermore plans that have a planned completion date further out into the futures are more likely to be cancelled if market circumstances deteriorate. The analysis has been carried out on a global scale and for the most important oil trading hubs: ARA, Houston, (greater) Singapore and Fujairah.

Tank Storage driver: Rates

Storage rates have recently come off their highs. Based on PJK research current rate levels have been determined. Furthermore considering demand and supply side issues a medium term forecast for storage rates is presented.These questions and others were studied by looking at important themes that could potentially impact market fundamentals. If you are in anyway interested in this industry, you will find this study essential for your view on the market.For promotional purposes, PJK International has made a short summary of the study. In this e-paper the contents of the study is further highlighted by giving a limited overview of important themes that have been analysed thoroughly. We will start by looking at how European refinery closures might impact tank storage markets. Second transit flows from Russia to Asia, specifically fuel oil flows, will be highlighted. Third, the influence of US refining renaissance is analysed and fourth, capacity developments are mapped out. Finally, storage rate developments are analysed.

The integral study became available at the end of February 2014. If you would like to acquire more in-depth knowledge about the tank terminal market study after reading this paper, please contact PJK International via mail: info@pjk-international.com or call: +31(0)-76-7676323. You can also pre-subscribe via our website and we will contact you about further deliverables.