Matrix Global Holdings LLC and Oiltanking MOGS Saldanha Pty Ltd. have announced they have developed an auction programme for storage capacity at Oiltanking MOGS’s facility in Saldanha Bay, South Africa.
A statement announcing the news said MOGS Oil & Gas, Oiltanking GmbH and IDC South Africa have partnered to develop a “world-class, efficient and commercially flexible facility”, which will consist of nine 1.121 million-barrel in-ground crude-oil storage tanks.
The statement added: “Using Matrix’s proprietary, transparent auction platform, Oiltanking MOGS will offer a number of storage tanks. Qualified customers will be able to bid on these 1.121 million-barrel tanks under guidelines set by Oiltanking MOGS and Matrix.”
Richard Redoglia, CEO of Matrix G, said: “We are proud to partner with Oiltanking MOGS. We believe that our model of offering storage in a transparent, standardized manner will bring value to the facility by reducing credit exposure, enabling access to more participants and realizing the optionality embedded in the forward value of storage. We are continuing to expand our innovative model both domestically and internationally.”
The deepwater Port of Saldanha Bay is strategically located on shipping routes between Asia, West Africa, and North, Central and South America. All tanks will be interlinked, allowing for efficient on-site blending of different API parameters of crude oil, it said.
The facility will be used by international customers to store, blend and transship crude oil for bulk building, balancing production, offtake and blending to meet international market requirements.
The statement concluded: “Matrix’s online auction platform has given greater access and transparency to the energy industry’s management of storage exposure. As of today, Matrix has sold over 455 million barrels of storage capacity on behalf of both the Louisiana Offshore Oil Port and the AMID midstream facility in Cushing, Oklahoma.”