海牙战略研究中心-欧洲储罐行业和全球能源格局（英）-2021-28页_1mb

Summary of the European Tank Storage Sector and the Global Energy Landscape

Core Content

The European tank storage sector plays a vital role in the global energy and chemical supply chains, with the Dutch Association of Tank Storage Companies (VOTOB) representing a significant portion of the sector. The sector is under pressure due to the energy transition, which is driving a shift away from fossil fuels toward renewable energy sources and low-carbon alternatives. This transition is expected to reshape the global energy landscape and the future of the tank storage industry.

Main Points

1. Overview of the European Tank Storage Sector

• The European independent tank storage sector (FETSA) has a total capacity of 120 million m³, with VOTOB representing 22% of this capacity.
• The sector employs 19,000 people and is expected to see €5 billion in future investments over the next five years.
• VOTOB's members collectively hold 25.5 million m³ of storage capacity in the Netherlands, which accounts for 78% of the country's total storage capacity.
• Storage terminals are not only privately owned but also have strategic importance, especially for energy security.

2. Global Context of the Energy Transition

• The global energy transition is expected to lead to a reduction in fossil fuel dependence, especially oil and gas, and a rise in renewable energy sources.
• OPEC+ (including Russia) is expected to maintain and possibly increase its market share due to low-cost production and plentiful reserves, while the EU will become increasingly dependent on imports.
• The energy transition is complex and influenced by geopolitical and macroeconomic factors, such as the EU's digital transformation and strategic autonomy goals, and the spatial shift of industrial clusters to Asia.

3. Oil Market Trends

• Global proven oil reserves have increased significantly, and the focus is shifting from depletion fears to climate change concerns.
• OPEC+ countries, especially Saudi Arabia and Russia, are increasing production, while IOCs (International Oil Companies) are reducing investments.
• Oil demand is expected to decline, but uncertainty remains in the short term due to the post-pandemic recovery and economic rivalry.
• Low oil prices and increased volatility are likely as the oil era comes to an end, creating both challenges and opportunities for the tank storage sector.

4. Natural Gas and LNG Outlook

• Natural gas demand is expected to peak in the 2030s to 2040s, but it will remain important for energy security.
• LNG is becoming a more flexible and cost-effective option, especially in uncertain long-term fossil fuel futures.
• The EU is increasingly reliant on imported gas, with Russian imports accounting for 40% of EU gas consumption in 2019.
• LNG markets are expected to shift toward low-cost producers, such as Qatar, Russia, and the US, rather than traditional ones like Australia.
• The demise of the Groningen gas field highlights the need for sufficient storage and supply contracts to ensure energy security.

5. Electricity and the Role of Tank Storage

• The electrification of society is a key part of the energy transition, with electricity expected to account for 50% of the global energy mix by 2050.
• Electricity storage is becoming more important, especially with the growth of EVs and renewable energy.
• The cost of electricity from solar and wind has dropped significantly, enabling rapid growth in electric vehicles and other applications.
• Battery technology is also advancing, supporting the transition to renewable energy.

6. Hydrogen and Biofuels

• Low-carbon hydrogen is a key focus of the European Green Deal and the Dutch Climate Agreement.
• Hydrogen storage is expected to become more important as hydrogen demand increases.
• Biofuels are also gaining traction, especially in the transport sector, as part of the decarbonization efforts.
• Uncertainty remains regarding the future market share of hydrogen and biofuels, and cost projections are still under development.

Key Information

• Global oil storage capacity is dominated by Asia (38%), followed by Europe (26%) and North America (20%).
• Middle East leads in new terminal construction with 54% of global capacity additions.
• China is a major player in global oil and gas markets, increasing its focus on Middle East oil.
• VOTOB and FETSA are key players in European energy storage, with VOTOB having a significant market share.
• The energy transition will require a costly reconfiguration of the tank storage sector, but it also presents opportunities in the new energy system.
• Strategic storage is essential for energy security, especially in the EU, where import dependency is rising.
• Geopolitical tensions and economic rivalry may lead to greater instability in the oil and gas markets.
• LNG is expected to play a key role in the transition, with cost efficiency and flexibility being major advantages.

Conclusion

The European tank storage sector is at a critical juncture, facing both challenges and opportunities as the world moves toward decarbonization and renewable energy. The sector must adapt to the changing global energy landscape, including increased reliance on imports, low oil prices, and new energy sources such as hydrogen and LNG. Strategic investment, policy awareness, and sector visibility will be crucial for the future viability of the tank storage industry in Europe and globally.