KBC assessed the technical feasibility and the economics of a refinery conversion to an importing terminal supporting their domestic requirements, and recommend solutions to overcome any potential constraints.
To consider the long term shareholder value of continuing to operate as a refinery with increased environment regulatory investment costs plus importing the local fuels shortfall against the conversion of the site to an importing terminal.
KBC completed technical and financial analysis to identify the constraints in the existing infrastructure operating as an import terminal and then evaluated possible options to resolve those constraints.
The scope envelope covered product movement, tankage requirement, utilisation and demurrage throughout harbour, berths, products pipelines, harbour storage terminals, intersite transfer lines, refinery storage, rail loading and truck loading facilities
Stochastic modelling was used to assess the flexibility and constraint of the existing assets for conversion of the refining operation to an import terminal.
Evaluation of the required investment, capital expenditures, financial model of the refining vs. terminal business cases was stress tested against agreed likely future scenarios.
Based on KBC recommendations, the client’s board approved the budget for next phase of the conversion project. The recommended investments are mainly required at the harbour terminal facilities with new tankage and access to a new berth to meet the ship forecast schedule.
WHITEPAPER
Aug 15, 2019
Europe’s refiners, through their industry organization Fuels Europe, have set out their long-term ambitions in a new program called Vision 2050. Putting this vision into practice will require Europe’s refiners to rethink and rebuild their long-term strategies, along the way transforming their organizations into modern, flexible knowledge-based enterprises. Read more in this market insight by KBC Chief Economists.
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NEWS
Oct 22, 2018
The hub will reduce energy costs and emissions of Singapore-based companies by 10 per cent through delivery of energy management and optimization solutions and next generation analytics via the Cloud.
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BLOG
Nov 6, 2018
Duncan Micklem, Strategy Director
Rising operational costs, a retiring knowledge pool and aging, inflexible infrastructure are just three of a number of threats the process industries currently face. These challenges, however, can be resolved if plants adopt an efficient Digitalization strategy. Here, Duncan Micklem, Director of Business Strategy at KBC, argues why urgent action needs to be taken and the time to Digitalize is now.
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