Choosing a petroleum storage facility should involve more than location and price. The facility must make sense from a legal, operational, commercial and regulatory perspective.
Confirm who controls the facility
Applicants should understand who owns the property, who operates the depot and which legal entity has authority to contract or issue supporting documentation. Unclear control structures can complicate verification.
Check product capability
Not every depot can handle every petroleum product. Tank configuration, segregation, infrastructure and operating procedures should match the intended product.
Assess available capacity realistically
Nominal tank capacity is not the same as available commercial capacity. Existing clients, minimum stock levels, operational requirements and product allocation can materially reduce what is actually available.
Consider regulatory and operational readiness
The facility’s licensing, environmental position, fire approvals, local authority requirements and other applicable permissions should be considered in relation to the intended activity.
Understand commercial terms
Storage, reservation, throughput, handling, minimum-volume and ancillary charges may all affect the economics of the arrangement. Applicants should understand these terms before relying on a facility as part of their business model.
Make sure the arrangement is verifiable
The depot or authorised operator should know about the proposed relationship and be able to confirm it accurately if required.
Related reading
Storage Partners’ approach
Storage Partners works with participating facilities and coordinates storage opportunities subject to facility approval, capacity, product compatibility, due diligence and commercial terms.
