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Valero’s Benicia refinery has a feedstock capacity of 175,000 barrels a day.  QAPCO has earned an international reputation as a high quality producer of ethylene. |
THE HEART OF THE SUPPLY CHAIN
It is difficult to imagine the sheer volume of goods produced from petroleum-based products - from food wrap and petrol, to clothing, automotive plastics and personal computers - which we all use in our daily lives. I.M. Skaugen is an integral part of the supply chain which ensures that the companies producing these products get the necessary raw materials at the right time in the right place. But that’s just half the story.
The physical transportation of these materials is the simple part of the job. What makes I.M. Skaugen different is the way it works so closely with its customers – almost second-guessing their needs - so issues are solved before they even occur.
Marubeni Corporation
Ethylene is one of the basic petro-chemicals carried by Norgas. It is a cornerstone of the petro-chemical industry and essential to the production of countless modern-day items and materials such as packaging film, carrier bags, anti-freeze and flavourings. Marubeni, the major trader of ethylene across the Asian region, has had a ten-year-plus partnership with Norgas and is presently chartering one of its vessels on a contract basis. The company trades between countries including Thailand, Malaysia and Singapore, transporting up to 500,000 tonnes a year, to plug the regional supply-demand gap.
“Being on the ground where we need them, is a key reason why we work with Norgas,” explains Sataro Ichinokawa, Manager, Olefins, at Marubeni. “We know they understand the market well, know what is going on and share this information with us. We respect and appreciate their knowledge.
”Ichinokawa adds: “Marubeni is a market leader in ethylene trading and to gain this position it has needed a supply chain partner that will go the extra mile. We have never doubted Norgas’ commitment, integrity and capabilities in our dealings with them, bringing success to us both.“
Qatar Petro-chemical Company (QAPCO)
Another partner of Norgas is Qatar Petro-chemical Company (QAPCO), a well-established player in the global petro-chemical market, producing ethylene, low-density polyethylene (LDPE) and other chemicals. It has worked with Norgas for many years, for both export and import of ethylene.
Until 2001, Norgas exported excess ethylene produced in QAPCO’s ethylene cracker. But with demand so high for its internationally renowned LDPE brand, Lotrene®, QAPCO cannot produce enough ethylene feedstock to supply its subsidiary, Qatar Vinyl Company (QVC), which manufactures ethylene dichloride, vinyl chloride monomer and caustic soda. Therefore, QAPCO, through Norgas, is importing about 50,000 tonnes a year of ethylene from producers in the Middle East, Asia and Europe to plug the shortfall in supply.
Whoever Norgas is working with, a focus on excellent customer service is the main priority, which is borne out by QAPCO. As Abdulrahman Al Abdulla, the company’s Marketing Manager, makes clear: “Norgas continually provides us with outstanding transportation services that exceed our expectations. They have gained our trust through their conduct and regularly supply us with valuable and factual trade information, helping us with our own operations. “
Because of the supply-demand changes with QAPCO over the years, Norgas has always had a very flexible approach to its relationship - without this attitude it could not be successful. This commitment is enhanced still further as Norgas works hard to provide higher level of service through the use of leading-edge IT tools and systems.
Abdulla concludes: “As one of the leading petrochemicals manufacturer in the Middle East, we treasure our partnership with Norgas and are proud to work with them as an integrated part of our logistic chain.”
This commitment to customers is also an imperative of SPT - a market leader in ship-to-ship transfer (lightering) of crude oil. Very large crude carriers (VLCCs) - which make crude oil shipments economical - are unable to dock in ports in many areas due to either geographical constraints or small berth sizes. So, lightering of the crude oil cargoes is undertaken offshore - anything from 30 to 80 kilometres out in deep water - from these super-tankers and transferred to the port.
Valero Energy Corporation
Valero is one of the leading oil refining and marketing companies in the U.S, based in San Antonio, Texas, with approximately 20,000 employees and expected revenues of $50 billion. It has been working with SPT - through its Houston and Freeport, Texas, offices - since the 1980s. SPT undertakes regular monthly lighterings of crude on behalf of Valero - primarily from tankers arriving from the Middle East, but also from West Africa - to any of four Valero locations on the Texas coast.
Wade Upton, Senior Vice-President, Transportation Services, at Valero, believes there is one major reason why the two companies are working together - the people. “We know our business, SPT know theirs and everybody is acutely aware of what we both need to do to make it a successful relationship,” he says.
The business operates 24/7, with decisions made quickly to keep things running smoothly. Upton continues: “We trust the team at SPT implicitly. They always give us an honest and fast response to any situations - from weather issues or timings of operations, to our major consideration, environmental safety. The levels of service they give us are truly excellent - which is why they are the top lightering company in the region.”
Basic lightering is a commodity business. But, what SPT does is offer a best-in-class, value-added lightering service, built on flexibility, safety, on-time performance and understanding.
As Upton concludes: “We are a highly professional, successful business and only work with companies who bring those same skills to the relationship. In SPT we have found a long-term partner who understands our culture, appreciates our values and reflects our work ethic. In short, we have a marriage made in Texas!”
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