25-02-14: ARA Tank Storage Market – Refining

Drivers of ARA Tank Storage Markets

PJK International, Tank Storage SpecialistThe 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?

Tank Storage driver: European refining dynamics

With demand for petroleum products stagnating in Europe and with its aging refining assets facing intense competitive forces the regional balance between supply and demand is certain to change. How this will translate into changes in product flows and what the impact will be for tank terminal operations in the ARA-region remains the question.

For the major oil product groups (gasoline, middle distillates, fuel oil) we have answered this question in great detail. The analysis is based on forecasts of oil consumption, oil production and assumptions on refinery closures.

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.

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PJK International, Tank Terminal Specialist

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.

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