In order to serve the world’s energy flows, VTTI Energy Partners brings together market-driven assets in strategically selected places.
Our network spans the global storage hubs that act as production, consumption, pricing and trading centres. Each of our locations benefits from deep water draft, excellent road, rail and hinterland connections, advanced infrastructure and favourable regulations that facilitate trading.
The ARA region is a key international supply and demand hub that serves ten refineries with a total refining capacity of three million barrels per day. With the region’s shortage of diesel fuel, and an excess of gasoline and fuel oil, balancing supply and demand requires significant levels of imports and exports.
We expect this trend to continue, with the diesel deficit requiring imports from Russian, Indian, Arabian Gulf and U.S. refiners. This augurs well for VTTI Energy Partners, the only company with terminals to service diesel fuel in all three ARA ports.
The Middle East region continues to be one of the world’s largest crude oil producers exporters. It also has significant refining capacity, but like Europe it has shortages and excesses of certain products.
The Port of Fujairah is one of the Emirates’ most important facilities and plays a key role in balancing the supply and demand in the region.
It is located approximately 70 nautical miles from the Straits of Hormuz, and is a gateway to the Indian Ocean from the Persian Gulf. In addition to its close access to the Middle East, it also serves as an outlet to East Africa and South Asia and as a consolidation point for fuel oil outlets and the regional bunker markets.
Within the Asian region, Singapore is a regional hub comprising three world class refineries, seven independent oil terminals, five chemical plants and a multitude of floating storage vessels.
By some measure, it is the world's largest bunker market and is the location where surpluses from Korea and Taiwan are matched with growing deficits in Malaysia, Vietnam, Indonesia and Australia.
Within the region, we expect significant development of refining capacity in countries such as China, but reductions in countries such as Japan and Australia. As a result, we expect that the region as a whole may be balanced in supply and demand, but that intraregional trade will increase.
In North America, the U.S. Gulf Coast is the supply and demand hub that serves the region. The surge in shale oil production over the past five years, combined with the U.S. ban on crude oil exports, has driven a boom in refined petroleum product exports from the U.S. Gulf Coast.
The country’s petroleum refining capacity is concentrated in Texas and Louisiana, leading to a structural excess of gasoline, diesel, LPG and naphtha on the Gulf Coast.
While the Gulf Coast refineries are benefitting from access to lower cost crude oil, other states without refining capacity, including Florida, depend on imports of refined petroleum products.
Florida’s tourism industry, and the resulting traffic through its international airports and cruise harbours, means the state’s demand for transport and marine fuels is one of the highest in the United States.