Africa’s Oil Hub Woos Global Traders With New Million-Barrel Tanks - Bloomberg:
What started as a strategic oil storage for South Africa during apartheid is now gearing up to attract the biggest traders as it turns into a global center for crude.
A venture building a dozen new interconnected tanks on Africa’s southern tip will add to neighboring government-owned capacity, making it one of the world’s biggest hubs. They are on some of the busiest energy transit routes, giving traders the option to store and blend various crude grades to help maximize profits at a time earnings have taken a beating.
“The location is key, and then the flexibility is the other main selling point,” said Johnny Stewart, principal analyst at consultant Wood Mackenzie Ltd. The tanks are able to accommodate a wider market with the blending capability and configuration, he said.
The partially underground tanks tucked away in Saldanha Bay are a monument to oil trading. A big advantage is their strategic position between the Atlantic and Indian Oceans, giving merchants relatively easy access to markets in Asia, Europe and America.
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