SOURCE: Industrial Info Resources

June 17, 2008 11:06 ET

U.S. and Canada Bulk Liquids Terminals Industry Lines Up $5.4 Billion in Project Spending

SUGAR LAND, TX--(Marketwire - June 17, 2008) - Researched by Industrial Info Resources (Sugar Land, Texas) -- With the dramatic increase in the cost of energy, fuel has been at the forefront of everyone's mind. The exploration and production of crude oil, along with the refining of gasoline and diesel, are front-page news on a daily basis. These industries are the main source of fuel used to meet energy needs; however, they are dependent on the mid-stream liquid bulk terminal operations to import and store feedstock, as well as distribute and blend the finished goods to the consumers. This is leading companies to invest in capacity expansions and new tank farm construction totaling $5.4 billion in the U.S. and Canada.

The new U.S. & Canada Liquid Bulk Terminal Industry Spending - 1st Edition wall map illustrates a clear picture of opportunities in the Terminals Industry's capital and maintenance spending.

This unique map identifies 350 major capital and maintenance projects valued at $5.4 billion that are scheduled for completion between 2008 and 2013. The project listing includes company names, locations and operating status.

As expected, considering the large number of terminals that store refined products, this sector also represents the highest percentage of active projects at 67%. The storage of chemicals and crude oil is tied with 15% each of the total number of active projects followed by biofuels with 2% and asphalt at 1%. The industry represents almost $5.5 billion in project activity. When ranked by spending on the different products, there is a striking shift in the order that the sectors fall in line. Crude-oil storage represents the largest opportunity, dollar-wise, accounting for 62%. Projects related to refined products account for 28% followed by biofuels and chemicals, representing 5% each, and then asphalt storage at less than 1%.

As the use of biofuels continues to grow, there will be a modest increase in the number of dedicated storage terminals. More than likely, additional biofuel storage will consist of additional tankage added at existing refined-products terminals to allow for the spot blending of ethanol and gasoline, as well as easier delivery to market.

Almost all oil and gas majors operate their own individual terminals, not including tank farms located on-site at refineries and production plants. The bulk of the terminals industry is operated by a collection of third-party terminal operators. These companies lease storage space to oil exploration and production companies, importers, plant operators and refiners. In total, Industrial Info has identified 260 companies that own terminals throughout Canada and the United States. The top 10 companies own 47% of the 1,251 operational terminals. The top 25 companies own almost 75% of all of the operational terminals in the United States and Canada.

Storage terminals are located all across Canada and the United States, but there is a higher concentration of terminals on the coasts because of close proximity to ports, processing plants and refineries. The Gulf Coast has the highest concentration of storage terminals with 234. Texas has 116, and Louisiana ranks third overall but second in the Gulf Coast with 80. California has the second-highest number of terminals with 98 bulk storage terminals, followed by Louisiana's 80 and Illinois's 61. Florida rounds out the top five states with 52 terminals. Other regions with high numbers of terminals are the Great Lakes Region with 226, the Southeast with 184, the West Coast with 138 and the Northeast with 131. In Canada, more than half of the country's 45 terminals are in Western Canada. Alberta claims 20 of Western Canada's 29 terminals. With the massive investments in oil sands projects that number will grow significantly.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services. For more information send inquiries to petroleumterminalsgroup@industrialinfo.com or visit our website at www.industrialinfo.com.

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