Whiffen Head terminal reopens as oil companies consider adding tanker capacity in the offshore
Placentia Bay transshipment terminal accepts first oil tanker since Jan. 22 collision
The transshipment terminal in eastern Newfoundland that serves as a critical storage facility for offshore oil resumed limited operations Thursday following an incident three weeks ago that involved a vessel laden with crude slamming into the wharf.
A tanker called the MT Minerva Coralia docked at the terminal around 8 a.m. Thursday in order to load up with crude from the Whiffen Head tank farm for delivery to the market.
Deliveries from the regular fleet of offshore shuttle tankers will also resume.
The Coralia was the first vessel to approach the terminal since the afternoon of Jan. 22, when a shuttle tanker called the Altera Thule crashed into one of the two jetties at Whiffen Head, opening a gash in the vessel's bow, crumpling a section of the wharf's concrete decking, and nearly toppling the mechanical loading arm that connects tankers to the cargo terminal.
There were no injuries, and the doubled-hulled Thule did not spill any crude into the bay.
There are multiple investigations ongoing into the incident.
The terminal at Whiffen Head is operated by Newfoundland Transshipment Limited (NTL). President Paul Durdle confirmed in a statement to the media that inspections and repair planning are continuing on the wharf damaged by the Thule. He would not say how long the wharf might be out of commission.
He added that inspections determined a second wharf was undamaged, and could be reopened.
"The team will conduct additional surveillance during start-up to provide extra monitoring of the operations," Durdle wrote.
Oil companies not taking chances
Despite the development, there are also signs that oil companies are taking no chances on a potential interruption in the flow of crude into Placentia Bay from Newfoundland and Labrador's offshore.
A spokesperson for Basin Wide Transportation and Transshipment System (BWTTS) wrote in a statement to CBC News on Thursday that additional ships may be required, and an application has been made under the Coasting Trade Act for an increase in the fleet of shuttle tankers.
"While no final decisions have been made, beginning the process now provides BWTTS participants with this contingency as an option."
BWTTS co-ordinates crude transportation on behalf of the oil companies with ownership stakes in the offshore.
There are three Altera-owned shuttle tankers in the regular fleet, plus the Altera Thule, which was added to the fleet for the winter season.
BWTTS could bring in another vessel, the spokesperson explained, or extend the contract of the Altera Thule once it is repaired.
"We continue to work closely with NTL and Altera to understand the longer-term implications, and ensure appropriate contingency plans are in place to support offshore production."
The shuttle tankers collect oil produced at the Hibernia, Hebron, Terra Nova and White Rose oil fields — roughly 250,000 barrels per day — and deliver it to Whiffen Head for storage in a tank farm capable of handling three million barrels. Hibernia, for example, can store roughly 1.3 million barrels of oil inside its concrete gravity structure.
Last year, the fleet delivered more than 90 cargos of offshore crude to the transshipment terminal.
Without access to the Whiffen Head terminal, shuttle tankers have been offloading their crude directly into what's called second leg tankers in Placentia Bay.
These ship-to-ship transfers are "a proven method of transfer, which has been used safely here and around the world," the BWTTS spokesperson stated.
Up to Thursday, there were five ship-to-ship transfers.
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