Platts 7th Annual European Oil Storage Conference

Hilton Amsterdam, The Netherlands, 28 - 29th January 2014

Rob Luijendijk MD of Downstream B.V. Consultancy company www.downstream.nl MD of TankTerminals.com Publisher of global tank terminal encyclopedia www.tankterminals.com

• Downstream B.V., Rotterdam, The Netherlands: - 14 year old consultancy company - 4 partners, all 25+ years experience - full focus on global tank storage industry - two main business lines: Research & Business Development: bridge between ideas/statistics and what type of terminal and where Mergers & Acquisitions: strategic advice, due diligence, partner selection, “deal-making” - Rotterdam, Singapore, Shanghai, New Orleans

Due diligence of 1,250,000 m³ Europoint terminal, now ETA (VTTI)

Sale ESHA refinery/terminal to Kaneb (now NuStar)

Amsterdam

Rotterdam Maasvlakte 2

Singapore Jurong Port

Rotterdam TEW project – Shtandart TT terminal

• TankTerminals.com, Rotterdam, The Netherlands: - Website: www.tankterminals.com - More than 3,900 tank terminals in 152 countries in 1,969 ports/cities - >700,000,000 m³ / >4,400,000,000 bbls - Capacity, # tanks, tank range/type (6), product type (7) - Accessibility (5), # berths, draft, status - Google Maps, address details, contact details (3) - Rotterdam, New York, Singapore, Shanghai, Barcelona, Sao Paulo - English, Russian, Chinese, Spanish, Portuguese, French, Japanese

- Free Registration (U/P, 100 credit points) - Annual Global/Regional/Light Accounts (any day) - € 5,000/€ 2,000 – 1,200/€ 450 per annum - Continuous Credit Account (€ 0,30/Credit Point) - 3 Search modules - News, Knowledgebank - Free Weekly Newsletter (~ 9,000 subscribers) - Enquiry form Producers/consumers/traders oil/chems/vegs, equipment/services providers, terminals operators, shipping cy’s, engineers, constructors, banks, funds, governments, etc.

The global captive + independent tank storage capacity is estimated at 2,000 – 2,500 Mm³ Independent tank storage capacity is approx. 400 - 500 Mm³ (20%)

20%

Captive Storage Capacity: Non-Public Storage Capacity

- Refinery storage capacity - State-owned storage capacity (national reserves, compulsory storage) - Long-distance (crude) pipeline/terminals systems

But what exactly is Independent Tank Storage Capacity??

Original definition of Independent Tank Storage Capacity: - No direct/indirect ownership-title to any stored product (terminal is just custodian) - Open to any third-party - Quality/quantity of stored product “unknown” (determined by third-party surveyor) - Accountable for redelivery of stored product in same quality/quantity as received - Separate legal entity (independent P&L) with focused tank storage business model

• 100% pure Independent Tank Terminal Operators

• Tank Terminal Operators are (partly) owned by: - Shipping, rail, truck, pipeline companies - Ports - Traders - Producers/consumers - Civil construction companies - Tank construction companies - Local development companies - National governments - Banks, funds, etc.

“Commercial Tank Storage”

- Ingress by new stakeholders, diversity in ownership is on the rise - Pure independency is falling, becoming less imperative - Tank terminals have become a tradable commodity - “Oil is money”. Are (oil) terminals money?

GOOD or BAD?

Re-mapping the world of “Commercial Tank Storage”

Focus on Europe

(operators > 1 Mm³ or > 10 locations)

(operators > 1 Mm³ or > 10 locations)

(operators > 1 Mm³ or > 10 locations)

Hot spots “Commercial Tank Storage”

- 60 terminals - 30,528,000 m³

- Significant expansions: - Shtandart - Vopak - VTTI - Vesta - Sea-Tank - Etc.

- 31 terminals - 14,040,000 m³

(excl. JRC)

- Significant expansions: - Vopak - VTTI - Jurong Port - JRC - Etc.

- Announcement Oiltanking + Gunvor on Karimun Islands (Indonesia)

- H: 26 sea terminals, 18,257,000 m³

- B: 19 sea terminals 12,135,000 m³

- Expansions: - BOTSCO (1,24 M m³) - Valero - Oiltanking - LBC, ITC

- Now: 4.5 M m³ - Expansions: 3.36 M m³

- Major expansions:

- Socar Aurora - Vopak-Horizon - VTTI - Fujairah Oil Terminal - Gulf Petrochem, etc. - Aegean Fuel Oil Tank Farm

- Watch: Ras Markaz - Oman Tank Terminal Company (OTTCO) - 90 % OOC and 10 % Takamul - All phases: 32 million m³, phase 1: 2017

Ports Countries M³ 2008 M³ 2013 % 1 Rotterdam Netherlands 12.062.033 14.096.802 17%

2 Houston United States of America 10.514.039 13.604.333 29%

3 Singapore Singapore 10.734.737 12.661.296 18%

4 Ulsan South Korea 8.132.750 9.294.010 14%

5 Qingdao China 6.538.122 6.775.112 4%

6 Antwerp Belgium 4.217.844 6.740.258 60%

7 Amsterdam Netherlands 5.694.946 6.404.555 12%

8 Beaumont United States of America 4.086.463 6.165.309 51%

9 Dalian China 4.546.250 5.446.250 20%

Total all ports 66.527.184 81.187.925 22% Total ARA ports 21.974.823 27.241.615 24%

www.tankterminals.com/europe-oil-petroleum-storage-tank-terminals