New deal creates crude oil hub

Saldanha Bay is a step nearer to establishing its potential as a global crude oil transhipment hub focused on certain established trade routes, according to Gideon Loudon, CEO of Oiltanking MOGS Saldanha. This with the 50%-50% jointventure between OTGC Holdings and MOGS having just been granted environmental authorisation by the department of environmental affairs and development planning for the development and construction of its commercial crude oil blending and storage terminal in Saldanha Bay. Comprising twelve in-ground concrete tanks, it will have a total capacity of 13.2 million barrels (2.0986 billion litres) of crude oil. The new terminal will be adjacent to the port, the only deep-water port on the west coast of southern Africa that can handle very large crude carriers (VLCCs). It has an existing oil jetty and import/export pipeline system. “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,” Loudon told FTW. “It is also ideally situated for the blending of West African and South American crude oils.” The new terminal will be built as a state-of-the-art facility in accordance with the highest technical, operational and environmental standards, Loudon added. INSERT The Port of Saldanha Bay is an excellent location for a crude oil hub as it is close to strategic tanker routes