(EnergyAsia, April 27 2011, Wednesday) — BP said it is investing A$20 million to expand its Largs North fuel terminal in Adelaide to enhance supply security in South Australia state. (US$1=A$0.93).
The new tanks will increase the terminal’s diesel storage capacity from 75 million to 105 million litres when operational in late 2012.
The UK major said it has started work on the design of two additional 30-million-litre storage tanks and will begin construction in the second half of the year. It is planning to build a rail gantry within the terminal to allow fuel to be transported throughout the state by rail.
BP said: “As the South Australia mining and transport markets continue to grow, rail movement of fuel offers a reduction in the number of truck movements and an improvement in the efficiency and safety of transporting large volumes of fuel around the state.”
BP’s Largs North terminal is already the largest storage facility in the region, and when complete the new tanks will double its diesel storage capacity.
The increased capacity will provide options to bring in product via the shipping patterns from the company’s Kwinana refinery in Western Australia, and
if the need arises, allow larger imports from Asia, adding to the flexibility of BP’s supply capability.
Paul Waterman, President BP Australasia, said: “The new tanks, combined with the new rail loading gantry will provide flexibility and additional supply security to our customers in South Australia.
“This announcement follows the recent award of four exploration blocks offshore South Australia which will see BP investing A$1.4 billion in seismic and drilling activity over the next six years.”
Mr Waterman said the new facility was just one of many being developed by BP and follows a multi-million dollar investment programme in new and up-graded terminals in Western Australia, New South Wales and Queensland.
“BP’s domestic refineries and terminal facilities combined with BP Shipping’s fleet of modern tankers and the company’s global Supply and Trading business provide customers with security of supply,” he said, adding that BP is the market leader for supplying diesel fuel to the mining and transport industry.
The company operates 2 refineries, a network of 18 terminals, 91 depots and 14 Truckstops on major trucking routes along with a retail network of 1,400 service stations.