EMEA News
Decision on Doubling Capacity at Algeciras Bunker Storage Facility to be Made Next Quarter: Vopak
Oil storage giant Vopak is considering doubling the capacity at the 403,000-cbm Algeciras bunker storage facility, according to comments made by the plant's director, TankTerminals.com reports.
"We should have a decision [on Algeciras] by the end of the second quarter. We have all the permits in place for an expansion and a few parts to the project in the pipeline, some may come on earlier," said Agustin Silva, plant director.
The plant specializes in bunker fuels, and it is understood that the expansion would more than double capacity to over 1 million cbm.
According to the report plans to expand the Algeciras terminal in 2015 were delayed as the company assessed the impact of new EU regulations limiting the amount of sulfur content in bunkers, which from January 1, 2015 dropped to a maximum of 0.10 percent within Emissions Control Areas (ECAs).
Since then, however, demand for bunker fuels is said to have remained "stable" and so the company is considering going ahead with the plans.
The report noted that there is "strong competition" to the Algeciras facility from the Amsterdam-Rotterdam-Antwerp region, which is experiencing "significant over-capacity" at storage terminals.
Vopak reportedly has no plans to diversify the product range that is stored at the plant.
In February of 2016 Ship & Bunker reported that the companies revenues had risen as a result of higher-than-average occupancy rates.
