Port of Rotterdam and Russian Partner Part Ways On Major Oil Terminal Project

The Port of Rotterdam Authority and its Russian associate have determined to terminate a long-standing contract calling for the development of greater than 3 million cubic meters of oil storage on the port.

In a joint press launch issued Thursday, the Port Authority and Shtandart TT, a 100% subsidiary of the Summa Group (Russian Federation), introduced the termination of the contract for the development of the $1 billion Tank Terminal Europoort West, which was to incorporate storage meant for the transit of Urals crude oil and oil merchandise.

The Port Authority first launched an ‘open assessment procedure’ for the challenge in 2010, which led to the signed contract with Shtandart TT the next yr. At the start of 2013, the Port Authority handed over the location to Shtandart prepared for development, and by early 2015 all the constructing and environmental permits mandatory for development and operation of the terminal have been in place.

The terminal was anticipated to enter operation in 2017.

The the press launch stated that contract consists of agreements on the schedule and the portions of crude oil and oil merchandise that may be dealt with on the terminal, however Shtandart TT lately raised issues over the feasibility of the challenge, which led to the choice to terminate the joint challenge.

The Port Authority does consider that it could be attainable to develop the terminal idea with one other get together now that the location is out there once more.

In the primary six months of 2015, dealing with of mineral oil merchandise was up by greater than 25% on the port primarily on account of a rise in Russian gas oil that’s shipped to the Far East through Rotterdam. In the final decade, about 30% of the crude oil that arrived in Rotterdam got here from Russia.

The press launch says that the Port Authority is satisfied that the termination of the Shtandart contract is not going to impact the substantial volumes of crude oil and mineral oil merchandise which might be being shipped between Russia and Rotterdam.