Maximising value through adapting the infrastructure
Infrastructure Services – Oil
Identifying infrastructure investment options in a changing market
Infrastructure Services – Petrochemicals
Building capabilities to successfully participate in biofuels value chains
Infrastructure Services – Energy Transition
Adapting terminal infrastructure to support biofuels storage
Infrastructure Services – Energy Transition
Developing an energy transition strategy for oil infrastructure
Infrastructure Services – Energy Transition
Developing a energy transition strategy for oil infrastructure
Infrastructure Services – Energy Transition
The Engagement:
Business planning and projects identification for energy transition
The Client:
A fuels importation terminal operator in North West Europe
The Challenge:
How would energy transition impact on future revenues and how should the asset footprint change out to 2040 to allow diversification?
Duration:
3 months
How Energex helped:
- Provided energy transition scenarios for the client’s regional market specifically for diesel and gasoline demand
- Projected the implied throughput volumes out to 2040 at the client terminal on core business based on a detailed assessment of the competitive landscape and logistics options for supply
- Analysed revenues and EBITDAs generated for each storage tank to allow quantitative decision making
- Recommend capacity to be in service out to 2040 on the core business and therefore which tanks due for maintenance should be executed vs. assessed for mothballing or conversion options
- Identified mitigation business lines through e.g. bitumen, chemicals, biofuels, and hydrogen carriers and assessed their fit with the client’s business and location
- Through an evaluation of potential and in-flight investment projects (including chemicals, bitumen, hydrogen carriers and LPG), we layered diversification and growth into the business plan
Tangible Impact:
- Workshops were held with commercial, operations and projects teams
- Identified that gasoline volumes in the client’s market were most robust, with challenges around diesel meaning a specific focus on capacity
- Identified more efficient ways to store and handle biofuels with existing assets available
- Suggested a renegotiation with one of the client’s customers given economics on the capacity once costs were considered
- A clear strategy and business plan report was delivered to the CEO for presentation to the shareholders and future refinancing
- Around $60m of investment projects were recommended by Energex for further technical investigations and engagement with existing and potential customers
Maximising value through adapting the infrastructure
Infrastructure Services – Oil
The Engagement:
Investment appraisals of revenue optimisation projects
The Client:
A marine bunker fuels terminal operator
The Challenge:
Are improvements possible with limited investments to service existing and new customers and thus improve revenues and utilisations?
Duration:
2 months
How Energex helped:
- Benchmarked the client’s asset against other storage operators in the region to identify areas of potential improvement
- Matched the capabilities and storage capacity required against the expected throughput from forecast product flows and bunker demand
- Assessed the potential for alternative marine fuels such as biofuels and methanol
- Generated a list of projects and assessed the commercial feasibility. Worked with technical advisors to look at costing and feasibility and therefore ranked the projects
Tangible Impact:
- Clearer understanding for the client in terms of where they are positioned versus their competitors and what specific changes are needed to remain competitive
- Impact of the energy transition on bunker fuels volumes on the client’s location and the core market is understood and the mitigation options are well articulated
- Identified that the addition of a barge berth would allow an anchor customer to win local bunker fuels market share and hence create an uplift in volumes and revenues for our client
- Identification of a number of ‘quick wins’ that involve maximising value from existing pipelines and tanks
- Around $15m of investment projects have been further developed by the project team after Energex identified these opportunities
Identifying infrastructure investment options in a changing market environment
Infrastructure Services – Petrochemicals
The Engagement:
Market study for chemicals expansion projects
The Client:
A chemicals terminal operator in North West Europe
The Challenge:
Which capacity expansion and upgrade projects should be executed given dynamics of the ethanol and methanol markets?
Duration:
3 months
How Energex helped:
- Forecasted supply and demand for main stored products including specific projects that would have a bearing on methanol and ethanol as well as RED II implications
- Mapped competitive landscape and therefore looked at capacity being brought online in coming years and whether this would result in bottlenecks or over capacity
- Considered customer requirements for storage and handling including logistical modalities such as rail
- Advised on future trends such as the use of methanol as a hydrogen carrier and assessed with the management team the suitability of the terminal from a zoning perspective for ammonia
- Assessed projects identified by client organisation and recommended which projects were supported from a commercial perspective
Tangible impact:
- Workshops were held with commercial, operations and projects teams
- Submitted a report to ensure that the financial owners of our client were comfortable with the commercial and strategic rationale for investments
- Allowed the client to become more aggressive in their pricing strategy as analysis showed that their asset is highly competitive in terms of infrastructure, but this was not represented in the rates being obtained
- The client proceeded with the highest-ranked expansion projects rather than the originally tabled full expansion, which is now contracted with a AAA customer at a premium storage rate
Adapting terminal infrastructure to support biofuels storage
Infrastructure Services – Energy Transitions
The Engagement:
Repurposing of fuel oil tanks to biofuels use
The Client(s):
A mineral fuels, vegetable oils and chemicals terminal operator in Europe and their oil major customer
The Challenge:
What is the best use of the client terminal asset footprint, given the energy transition, to allow diversification in the operating model?
Duration:
3 months
How Energex helped:
- Provided energy transition scenarios for the client’s core products and markets, with a specific focus on biofuels demand
- Matched the capabilities against the technical, operational and storage capacity required in the context of the expected throughput of bio product types
- Built a customised operational design for each storage tank and connected infrastructure to allow quantitative decisions on what is fit for purpose
- Identified mitigation options for declining core revenues through converting storage to products such as FAME and HVO, along with the required line segregations and heating
- Built on existing operating standards, assessing the fit for diversification with the client’s business and location
- Created a ‘tie-in’ program for the existing infrastructure already in bio grades service with the new assets
- Supported our client in commercial negotiations regarding the converted capacity
Tangible impact:
- Confirmed that client’s customer biofuels trading volumes are robust, with challenges around diesel use-case which required specific focus on capacity
- Technical and commercial meetings were held with commercial, operations and projects teams
- Identified more efficient and economical ways to store and handle biofuels with the existing assets available
- Managed the interface between storage provider and their oil major customer to ensure that the Statement of Requirements was properly defined and understood
- Assisted the client’s commercial management team in gaining investment approvals for the conversion projects from their board
Developing processing capabilities to participate in the renewable diesel & sustainable aviation fuels value chains
Infrastructure Services – Energy Transitions
The Engagement:
HVO feedstocks pre-treatment project development
The Client:
A Petrochemicals and Biofuels storage and processing operator in Rotterdam, Europe
The Challenge:
Initiation and conceptual design to convert and recommission an existing 1st generation biofuels processing plant into a pre-treatment plant to treat different HVO feedstocks.
Duration:
8 months
How Energex helped:
- Highlighted the new opportunity to invest in pre-treatment capabilities at the client site and how this would fit in a renewable value chain
- Led the development of the technical and operational concept for cost-effectively converting an existing Fame asset to a feedstocks pre-treatment plant to allow further processing into HVO and SAF at a 3rd party site
- Provide project management and setting up client’s site team including process engineers, project management and a 3rd party engineering. Including linking manufacturers specialising in building pre-treatment plants
- Energex commercial team carried out a market study to determine forward supply and demand factors for 1st vs. 2nd generation biodiesel feedstocks (and end products such as HVO and SAF) to underpin the strategic rationale for capital investment
- Energex commercial team ran robust project economic analysis and economic metrics for presentation to the board for the release of capital and further development funds
- Generated a list of potential customers with a strong match to our client from a feedstocks type/location / business activity perspective
Tangible impact:
- Allowed our client to successfully appraise the project options and focus on pre-treatment capabilities that would be most attractive to potential customers
- Determined the best scope options vs. investments based on the impurities and properties of the feedstock options varying from used cooking oil to category 3 animal fats
- Advised on commercial structures to allow our client to generate attractive returns from their investment
- Determined the use of ancillary storage and handling assets to optimise the pre-treatment processing unit
- Listed and then assisted in the engagement of customers to allow the project to move to the next stage