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Bulk liquid storage

What is bulk liquid storage?

Bulk liquid storage refers to the storage of large volume liquids – typically crude oil, fuels and chemicals.  These liquids are typically stored in specialised containers/tanks – made from specialty materials, with pressure/heating conditions as needed depending on the product stored.

The purpose of bulk liquid terminals is to provide temporary storage for these liquids before they are transported for further processing or for end-markets.

Bulk liquid storage plays a crucial role in logistical supply chains – acting as an intermediate hub that facilitates the movement of liquid products between different modes of transportation, including sea vessels, road tankers, rail cars, and pipelines. These storage terminals can either be owned by companies that store their own products (such as major oil companies) or by third-party storage providers.

The energy transition will place specific demands on bulk liquid storage as the types of products that are stored change and new trade patterns emerge.

How can etasca help?

The etasca team has extensive commercial, technical and environmental experience reviewing bulk liquid terminals globally – and have supported numerous transactions in the ARA region.  etasca is able to comment on the attractiveness of different terminals depending on current and future product trade flows, port characteristics and the tank conditions/specifications.

Interested?  contactus@etasca.com

Tank Designs

terminals

of bulk liquid storage globally

%

of global bulk liquid
storage capacity is
in Europe

Commercial considerations:

Europe is one of the most important markets for bulk liquid storage – providing approximately 30% of global capacity.

  • Capacity is centred in the ports of Amsterdam, Rotterdam, and Antwerp (“ARA”) – providing favourable sea access for imports and supply to regional demand centres in the Northwest Europe refining and petrochemicals hub.

Demand for bulk liquid storage capacity is driven by several complex factors – however, rising net-trade (gap between local consumption and production) typically triggers demand.

  • Storage terminals in the ARA region in particular favour from rising imports of crude oil, refined products and chemicals due to the ports’ location on major shipping routes and ability to accommodate major shipping vessels.

Declining consumption of refined product in Europe (gas-oil, diesel etc.) will impact demand for storage capacity. 

  • Overall, European demand for refined products is projected to decline by more than 20% by 2030(1) – impacting demand for storage capacity. However, Europe’s growing reliance on imported aviation fuel due to the rationalisation of domestic refining capacity and rising demand will drive demand for storage capacity.

A shift in chemicals production – particularly chemicals intermediates to low-cost gas regions (USGC / Middle East) and higher growth demand centres (Asia Pacific) will continue to impact trade flows. 

  • Potentially favouring some ARA based terminals to support downstream/specialty chemicals plants relying increasingly on imported feedstock.

Rising consumption of biofuels in Europe driven by EU legislation such as the Renewable Energy Directive (“RED”) will drive greater storage demand for these products. 

  • RED has set a biofuel target penetration of 14% by 2030 for road transport.
  • The longer-term shift away from fossil fuel-based refined products will favour certain terminal locations supporting the biofuels supply chain.

Contango/backwardation driven trading activity can have a material impact on bulk liquid storage demand/operating rates. 

  • In contango, traders store more products as product price in the futures market is higher than the spot price.

Storage rates are normally expressed as $/cbm/month. 

  • These rates are dependent on the material of tank required (carbon or stainless steel), the design (fixed versus floating), the volume, the ancillary services required, the gross trade/capacity ratio and the level of competition.

Technical considerations:

The attractiveness of bulk liquid terminals can vary within an individual port depending on various factors including:

  • Draft depth, jetty capacity, logistics infrastructure (access to the hinterland through favourable waterways, rail and road networks) and port location (exposure to congestion/demurrage).

The flexibility of a bulk liquid storage terminal to store alternative liquids (chemicals, biofuels, gases, specialty fuels etc) depends on the tank specifications and ancillary service offering. 

  • The storage of certain chemicals can require expensive metallurgy such as stainless steel or require internal heating.  Other products (such as ammonia) can require pressurised tanks or cooling to prevent boil off.

Depending on the type of service and the regulatory regime storage tanks require periodical inspections. 

  • Internal inspections are carried out (along with NDT and other inspection techniques) to establish the condition after certain periods.  The replacement of tank floors is normally the highest capex spend item.

Operational key performance indicators. 

  • Typically include tank turnover rate, utilisation, maintenance time, ancillary services, handling time, fill rates, maintenance capex/opex and access to import/export infrastructure.

Regulatory compliance and safety, e.g., compliance to Control of Major Accident Hazards (e.g. COMAH) is paramount for bulk liquid storage terminals. 

  • Ensuring proper maintenance, leak prevention, and emergency response protocols are essential. Additionally, safety incidents (such as spills or fires) can disrupt operations, impact revenue, and harm the terminal’s reputation.  Contaminated ground is often an issue at bulk liquid storage terminals.

 

1. World Energy Outlook 2022 report by the International Energy Agency (IEA)