Oiltanking Grindrod Calulo Holdings (OTGC) - a subsidiary of German-based Oiltanking - and Mining, Oil and Gas Services (Mogs) have concluded a joint-venture agreement to construct a commercial crude oil storage and blending terminal in the Port of Saldanha Bay.
This will have a total capacity of 13.2 million barrels stored in 12 concrete tanks each of 1.1m bls capacity.
Development, construction, management and operations will be carried out by the new company, Oiltanking Mogs Saldanha (OTMS) – in which Mogs and OTGC will each hold 50% shares.
The project was initiated by Mogs in 2011, with the pre-feasibility studies and design now completed, and the project in the final stages of obtaining the required statutory approvals.
A statement released by Grindrod said that the Port of Saldanha Bay 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. It is ideally situated for the blending of West African and South American crude oils. The port has the potential to establish itself as a global crude transhipment hub focused on certain established trade routes.
The new crude oil terminal will be built as state-of-the-art facility in accordance with the highest technical, operational and environmental standards. Its jetty will be designed for handling vessels up to VLCC (very large crude carrier) size.
