THE WORLD OF OILTANKING VOL. 25/3 DECEMBER 2013 connections The right chemistry EDITORIAL CONTENTS Contents ASIA PACIFIC 04 Greenfield terminal in Karimun 08 Rare opportunity 32 Not lost in translation EUROPE 13 The C4 project The right 14 Setting a new course 16 Oiltanking in the global spotlight chemistry 18 Joyful reunion at Oiltanking Deutschland 18 20 Team spirit to a tee REUNION INDIA 26 Making the Common User Terminals “My world turns around oil” — if you hear me increased its foothold in the world of saying so you might think “Of course, after petrochemical storage worldwide and has LATIN AMERICA 40 Gearing up for the new generation all he is working in the oil business.” But also become a market leader. Small terminal, big performance in private I am — like so many of you — 43 surrounded by products which are petroleum Given all the above mentioned developments based. Chemicals are often the basis of we thought it was about time to focus on NORTH AMERICA 34 And the winner is … United Bulk Terminals! manufactured goods. These base chemicals petrochemicals in connections. I hope we Time to take stock of the Appelt can be found in so many products that make found the right mixture of interesting articles 35 expansion project our lives more convenient, efficient, and for you. 40 safe. 36 A donation that binds together Enjoy your reading, EXPANSION The past shows that innovations in the petrochemical and energy sector helped the PEOPLE 10 We can, we care ... in petrochemicals economy to grow and improve living 22 Cultural Experiences | 好事成双 (Good standards around the world. The projected & PLACES things always come in pairs) increase of the world’s population and the rising income levels in emerging markets will contribute to an even faster growth in LEISURE 07 I spy with my little eye … demand for chemical products. In 1999 Carlin Conner Lexicon | GHS Oiltanking made a significant step for its Managing Director Oiltanking GmbH & FUN 21 future by venturing into the storage of 25 Number | 43 groups petrochemicals. Since then Oiltanking has 28 Facts | Petrochemicals make things happen 31 The art of recycling 37 Cover text | Polymazing 38 Chemical combinations 44 Sport | Once-in-a-lifetime adventure IMPRINT connections Vol. 25/3/2013 Published by Oiltanking GmbH, Corporate Center, Admiralitaetstrasse 55, 46 Hard or soft? 44 20459 Hamburg, Germany, www.oiltanking.com, Telephone +49-40-37099-485, Fax +49-40-37099-499 Reader's Corner ADVENTURE E-Mail [email protected] Coordinator Gabi Wuestenberg, Manager Communications Editor Renate Eijkholt 47 Design raz design, Hamburg Print BEISNER DRUCK GMBH & Co. KG, Hamburg Published Three times a year 48 Last but not least | Stunning chemical Copy Deadline vol 26/1 31.01.2014 sculptures Print compensated Id-No. 1332989 www.bvdm-online.de 2 CONNECTIONS CONNECTIONS 3 ASIA PACIFIC ASIA PACIFIC Greenfield terminal in Karimun After four years of business development efforts, Oiltanking Asia Pacific The project dates back to 2009 when Oiltanking Asia Pacific initiated a search for officially began the construction of its terminal in Karimun, Indonesia, on an alternative to the insufficient oil storage August 28, 2013, when the groundbreaking ceremony was held at the site. situation in Singapore. In recent decades, this city state has developed into a key maritime hub in the Asia Pacific region, blossoming into an integral part of the area’s petroleum trade and supply chains. In light of an appetite for energy driven by Asia’s rapidly growing economies, the demand for independent storage in Singapore has been rising year after year, SYMBOLIC SIGNIFICANCE Due to the often outpacing the growth in capacity. By heavy rain outside the groundbreaking the late 2000s Singapore had experienced a significant had to take place indoors. wave of storage expansions which doubled the existing capacity in just a few years. In spite of a number of skeptical voices on the market fearing overcapacity and the disruption of markets, the new capacity was absorbed BRIGHT FUTURE by the market virtually overnight, thus proving the position as Asia’s primary oil trading and pricing hub, An artist’s impression resilience and attractiveness of Singapore as a petroleum where Oiltanking is well poised to grow with the market. of the proposed terminal nerve center. gives a good idea of the Objective: cater to Greater Singapore’s scope of the task at hand. The demand for petroleum storage has continued to climb: petroleum storage needs Existing players could not expand their activities and new entrants were unable to enter the market due to land The project will be developed together with Gunvor, one of scarcity. This prompted Oiltanking to look for viable the world’s largest trading houses, which will also be one alternatives to Singapore and the island of Karimun, of the main users of the terminal. Indonesia, was selected as the optimal location for a Johor Bahru Pasir Gudang greenfield terminal. Karimun’s advantages include its As with any large-scale project, the Karimun development proximity to Jurong Island (Singapore’s Industrial hub), has had its fair share of ups and downs. Coinciding with favorable nautical conditions and the availability of ready- the aftermath of the 2008 global financial crisis, one of the to-build land. The proposed terminal is intended to cater challenges of the project was to look beyond the “wait- Singapore to the petroleum storage needs of Greater Singapore — a and-see” approach of the market and its unwillingness to geographical area that includes Singapore, the Johor State step into long-term commitments. Nonetheless, ongoing Malacca Strait of Malaysia and Indonesia’s Riau Province. With the new discussions with industry players and the assessment of terminal, Oiltanking is bolstering its position in Asia Pacific the market outlook confirmed the commercial attractiveness Jurong Island through the development of a network of terminals with of the project. KARIMUN One of the islands in the Riau Karimun diverse functionalities, serving all segments of liquid bulk Islands province of Indonesia which lies Batam handling.Bintan In light of the competition emerging from China The terminal is to be built on a 25-hectare site purchased about 37 km southwest of Singapore. INDONESIA and South Korea, this project helps Singapore maintain its by Oiltanking in 2010 and constitutes the first phase of the 4 CONNECTIONS CONNECTIONS 5 ASIA PACIFIC LEISURE & FUN with my I spy little eye … tank farm paving, etc. In the next step, … a monkey! If you peel your eyes and look closely at the image, you the crushed granite will be used for the will probably spot our “furry colleague” at Oiltanking’s Helios terminal installation of the stone columns to in Singapore on August 12, 2013. The black-and-white monkey, which improve the load-bearing capacity of the seemed quite mature, checked out the rooftop of the main building soil, followed by the placement of tank before continuing on its morning rounds at tankfarm 2 and took a break foundation pads at ground level (also at jetty No. 5. Ferlyn Eng, Office Secretary, immediately contacted the MOMENT OF GREAT IMPORTANCE Sven utilizing the material removed from the Agri-Food & Veterinary Authority of Singapore (AVA), the go-to office in Partzsch, General Manager Oiltanking hill). Next, a corrosion protection layer such cases, to help capture the monkey. While it is not uncommon to Karimun, explaining the project. of asphalt will be laid on top of the tank pads, upon which come across primates in Singapore, such as in nature reserves or steel plates will be installed for tank bottoms. From there, sometimes even residential areas, this was the very first time that AVA tanks will be erected using the jack-up method, i.e. had ever recorded one at a tank terminal. The encounter is definitely project. Oiltanking has an option to expand by utilizing the starting with the top shell first. All larger tanks will be unique as the Oiltanking Helios facilities are located on Jurong Island, adjacent plot of land, which could potentially accommodate covered with state-of-the-art aluminum geodesic domes. an artificial islet southeast of Singapore’s main island and the heart of up to 1.2 million cbm of storage. Phase 1a will be evenly the city’s energy and chemical industry. split between fuel oil and clean petroleum products. The In parallel to the construction works of Phase 1a, Oiltanking total capacity of 760,000 cbm will be supported by four is in the process of conducting a feasibility assessment for berthing positions for vessels up to VLCC (Very Large Phase 1b, which is earmarked for crude oil and could lift Crude Carrier) size. The initial draft of the approach the total capacity of Phase 1 to 1.2 million cbm. While a lot channel leading to the terminal will be 18 m. For the crude of work has already gone into the project, two more years WELL I’LL BE A MONKEy’S oil storage projected for the next phases of the terminal, of hard work will be required to bring the Karimun terminal UNCLE! Sure enough, the access can be deepened further by means of some to life. Oiltanking’s Helios additional dredging works (removal of occasional terminal in Singapore had outcrops). a furry experience. The work on site of the project, which is expected to be commissioned in June 2015, got underway in 2011 with the removal of a hill located on the plot of land. The granite obtained as a result will be used for other ground improvements and shoreline protection works as well as feedstock for onsite concrete production, road subbase, PRESENTATION Pencak silat, the indigenous martial art of Indonesia was performed to give a warm welcome to the honorable guests.