Shared petroleum storage allows more than one wholesaler or industry participant to use capacity at the same storage facility. It can be a practical alternative to owning or leasing a dedicated depot, particularly for businesses that do not require permanent exclusive tank capacity.
How shared storage works
The depot operator retains control of the facility and determines which clients may use it, what products can be handled, what capacity is available and what commercial and operational conditions apply.
The client may receive storage access, throughput services, handling services or a broader commercial arrangement depending on the facility and the intended use.
Why wholesalers use shared storage
Shared storage can reduce the capital burden of developing a dedicated depot and can provide access to strategically located infrastructure. It can also support a wholesale license application where the applicant genuinely intends to use the facility as part of its operating model.
What should be documented?
The documentation should identify the parties, the facility, intended products and the basis of the proposed relationship. It should also make clear that access remains subject to facility approval, capacity availability, commercial terms and operational requirements.
Where the arrangement supports a regulatory application, the documents should be specific to the applicant and capable of verification.
Shared does not mean unlimited
A facility may support multiple clients, but capacity is finite. Existing commitments, product segregation, tank configuration, throughput constraints and operational schedules all affect what can realistically be offered.
Related reading
Storage Partners’ role
Storage Partners coordinates structured access between applicants or wholesalers and participating storage facilities. We help clarify requirements, identify suitable opportunities and support the documentation process.
