Germany’s Oiltanking GmbH has announced that it has entered into a joint venture to build a commercial crude oil storage and blending terminal at the Port of Saldanha on South Africa’s south-western coast
The US$200mn crude oil blending and storage terminal will reportedly be Africa’s largest specialist blending terminal designed to supply international refineries.
The consortium includes Oiltanking GmbH, Oiltanking Grindrod Calulo Holdings and Mining (a subsidiary of Oiltanking GmbH) and South Africa's Oil and Gas Services (MOGS).
Africa Oil & Gas will implement the programme on behalf of the consortium, Oiltanking GmbH said.
According to Pieter Coetzee, executive director of Africa Oil & Gas, the terminal will be able to hold and blend crude oil from six very large crude carriers (VLCCs), also known as supertankers, which have a capacity of two million barrels of oil.
The project will cover 24.5ha and will be situated next to the Strategic Fuel Fund (SFF) Association’s tank farm, east of the existing port, Coetzee added.
Construction on the first concrete tank has been scheduled to begin by Q1 2014, with the entire project likely to be completed by Q1 2017.
Currently, blending is on a much smaller scale in South Africa, with tanks that hold between 75,000 and 100,000 barrels.
“Port of Saldanha is an excellent location for a crude oil hub as it is close to strategic tanker routes from key oil producing regions to major oil consuming markets,” the consortium said.
The Western Cape Economic Development and Tourism Department said the terminal would stimulate the province’s downstream oil and gas sector.
