Source: China Customs – General Administration

Regional Outlook for Storage

Platts Singapore, June 2017 Ellen Ruhotas, Ratio Group

Source: Llewellyn Consulting – Changing Face of Asia Pacific Report - 2014

The Region

Source: TankTerminals.com

Asian Storage Statistics

21 Countries

> 750 Terminals

>2.6 billion m3

Capacity

China, 64%

Japan, 8%

India, 8%

South Korea, 5%

Singapore, 5%

Other APAC, 10%

Process Storage Strategic Storage

Captive Storage Independent

Storage

Drivers of Demand for Storage

People

Population Growth

Urbanisation

Source: UN HABITAT

We are Moving to the City

Growing Prosperity

The Middle Class Wave

Source: H. Kharas, Emerging Middle Class in Developing Countries, Brookings Institution

What does this mean for Storage?

Asia Outpaces Global Growth

Source: Wood Mackenzie

Storage of Crude Oil

Strategic Oil Storage in Asia

• US – Strategic Petroleum Reserve – 116 million tonnes

• IEA – 28 countries – 90 days of reserves

• Asia – China, Japan, South Korea, Taiwan, Thailand

• Plans for Strategic Stock in Asia

China Strategic Oil Stocks

390

400

410

420

430

440

450

460

470

480

490

Source: Ursa Space Systems, Blacklight Research

million barrels

India Strategic Storage

Source: IEA

Underground Caverns Phase I – 5.33 million tonnes • Vizag • Mangalore • Padur • 13 days of India’s requirement • Commissioning 2016

Phase II – 10 million tonnes • Chandikhol • Bikaner • 22 days of reserve • Under discussion

Storage of Gasoline & Diesel

Regional Imbalance of Product

Source: Unipec Research

Storage of Jet Fuel

Number of Planes to Increase by 205%

Source: Airbus GMF 2017

Air Traffic doubles every 15 years

Source: Airbus GMF 2017

Storage & Blending of Fuel Oil

Storage of Petrochemicals

Petrochemical Annual Growth > 4.5%

Source: ICIS Supply and Demand Database

Storage of Edible Oils

Global Consumption of Oils & Fats

Source: Oil World – www.oilworld.de

Million metric tonnes

Asia’s Storage Terminals

Source: TankTerminals.com

China

Bulk Liquid Storage in China

• Growth in Strategic Crude Oil Storage to continue

• Infrastructure for Refined Product Exports

• Independent Refiners need additional tankage

• Other product terminals will see decreasing demand

Japan

• 54 Terminals • 20.1 million m3

• Nil major expansions • Nil major greenfield

Saudi Aramco/ADNOC - Okinawa

India

• 75 Terminals • 23.9 million m3

• 6 terminal expansions • 3 planned terminals

South Korea

• 24 Terminals • 13.9 million m3

• nil terminal expansions • 3 planned terminals

Greater Singapore Terminals

Source: TankTerminals.com

“Hidden” Storage

Source: www.tankertrackers.com

Sungai Lingi, Malaysia 15 vessels, 14.5 Mbbls Peak, 22 vessels, 20.2Mbbls

South East Asian Terminals

Asian Independent Terminal Developments

Source: Ratio Group

Country Existing Capacity

Capacity Under Construction

(m3)

Proposed New Terminal

Capacity % Increase

Australia 2.3 million 4,660 0.3 million 11%

Philippines 2.6 million 170,000 Nil 6.5%

Myanmar 30,000 Nil 88,000 293%

Thailand 2.4 million Nil Nil Nil

Indonesia 2.7 million Nil Nil Nil

Vietnam 0.8 million Nil Nil Nil

• Cambodia • Sri Lanka

• Bangladesh

Outlook for Storage

Global Storage

Real GDP Growth – 2016 - 2050

Source: PwC – The World in 2050

1. Vietnam 2. India 3. Bangladesh 4. Pakistan 5. Philippines 6. Indonesia 7. Malaysia

LNG Terminals

Rise of Electric Vehicles

Source: https://www.bloomberg.com/features/2016-ev-oil-crisis/

In Summary

• Organic Growth of existing storage terminals

• Greenfield ONLY with Anchor Customer

• Crude Oil Storage will be Strategic

• Refined Product Storage – steady growth

• Petrochemical and Edible Oils – growth areas

• LNG and No Fossil Fuels – not in my lifetime!

A boutique advisory firm specialising in the bulk liquid storage industry:

• Investment Advisory Services • Strategic Research & Advice • Terminal Feasibility & Design • Audit and Benchmarking

www.ratio.com.sg