Shell adds crude storage capacity at Bukom refinery

Royal Dutch Shell PLC has completed a project to expand crude oil storage capacity at its 500,000-b/d Pulau Bukom refinery on Bukom Island, Singapore.

Part of Shell’s investment to enhance competitiveness of the refinery and meet growing demand in the Asia-Pacific region and beyond in the coming decades, addition of the two newly constructed crude storage tanks expands storage capacity at the site by nearly 1.3 million bbl, Shell said.

The new storage tanks—which were built using an automated welding technology that helped reduce welding time by 60% and lowered costs, as well as a special aluminum alloy used in the tank roofs to provide better protection against severe weather such as lightning and to help prevent common maintenance issues like rust and corrosion—give Shell greater flexibility to optimize its oil trading activities and deliver products to customers more efficiently and profitably, the operator said.

As part of the project, Shell also built a new seawall and modified nearby drainage systems to help protect the environment.

“This project positions Shell to capture stronger margins and better manage market volatility over the coming years,” said Robin Mooldijk, Shell’s executive vice-president for manufacturing. Specifically, the new storage tanks will enable the operator to buy more oil when market conditions are attractive, according to Mooldijk.

The Bukom storage project comes as part of Shell’s ongoing effort to improve competitiveness by investing in storage and logistics at its core refineries. Alongside the Singapore complex, the company said it also is investing in storage and logistics to further enhance the competitive edge of its large, integrated sites in Rotterdam and the US Gulf Coast.

Shell said it also recently installed new storage, blending, and logistics infrastructure at its refineries in Deer Park, Tex., Norco and Convent, La., and Pernis, the Netherlands, as well as added storage capacity at its Rheinland refinery in Germany and Tabangao refinery in the Philippines.

Contact Robert Brelsford at [email protected].