This is in addition to existing jet supply and storage at its 2.8 million bbl capacity terminal at Port Canaveral, which was opened for business in February 2009.   The new terminal project at Port Everglades will cost $31.4 million. Permitting for the project is expected to take 6-8 months, and another 8-10 months are needed for construction.

The privately owned Vitol Inc. has the financial capacity to fully fund the capital investment required for the proposed new petroleum storage facility at Port Everglades. The company has Shareholder Equity in excess of $1 billion.   
Vitol expects to fund this project from available cash and will not require financing, nor will financing be a condition to execution of the lease with Broward County.   Vitol Inc. participates is the Vitol Group global working capital and other bank facilities, which are well in excess of $15 billion.   
Vitol recently made a public announcement of a renewed bank facility for $5.3 billion. Vitol is expected to pay an annual base rent of no less than $1.05 million.   Unlike the Port Canaveral terminal, which has 24 tanks for gasoline, diesel, jet fuel, liquid propane and fuel oil, the new terminal at Port Everglades will have an initial storage capacity to store 945,000 bbl of jet fuel and ethanol in 10 tanks.   Initially, Vitol plans to use seven tanks for jet fuel and one or two for ethanol.   Vitol Aviation plans to expand its business scope by delivering jet fuel to local airports in Fort Lauderdale, Miami, and Palm Beach.   
At the outset, all products will be either shipped to local airports or transferred intra-Port Everglades.   Port Everglades is considered the gateway to the Miami and Fort Lauderdale markets in south Florida.   Vitol, one of the top three oil trading houses in the world, does not anticipate shipping product into markets not currently served by the Port.   It is not currently planning on storing diesel fuel or gasoline at Port Everglades.   
However, should the product mix change in the future, Vitol would be willing to provide fuel to the County in the event of an emergency.    Vitol will receive ethanol from U.S. producers as well as from CBI countries.   Vitol and Blue Knight Energy Partners, which will operate the terminal, will accept third party through put volumes for any storage capacity not utilized for proprietary purposes.   The future capacity growth of the new terminal will depend heavily on the recovery of the South Florida economy.   Vitol is confident Florida will regain its status as the fastest growing large state.

FIVE-YEAR PLAN

In its five-year volume projection for the terminal, Vitol expects a significant growth in renewable fuel capacity and supply after its start-up in 2012.   For 2012, the terminal’s supply volume for jet is estimated at 2 million bbl for jet fuel and 500,000 bbl for ethanol. The limited volume for 2012 is due to an expected start-up in the fourth quarter of 2012.   For 2013, the terminal’s products supply volume will jump to 13 million bbl: jet fuel at 8 million bbl and ethanol 3 million bbl. The terminal will offer 2 million bbl of other clean oil products, including gasoline and diesel for the first time after its restart.    
In 2014, the volume will rise to 15 million bbl: jet at 8.5 million bbl, ethanol 4.5 million bbl, and other clean products 2.1 million bbl.   In 2015, the annual volume supplied at the terminal will continue to edge higher to 17.125 million bbl: jet 8.925 million bbl, ethanol 6 million bbl, and clean products 2.2 million bbl.   In 2016, the volume will increase to 18.775 million bbl: jet fuel 9.375 million bbl, ethanol 7 million bbl, and other clean products 2.4 million bbl.   In 2017, the volume will reach 20.650 million bbl: jet 9.9 million bbl, ethanol 8 million bbl and other clean products 2.75 million bbl.   
Vitol expects the demand for renewable fuels to continue to accelerate and certainly to outpace any growth in traditional petroleum based finished products. Vitol’s current plan is to use about 80-90% of the capacity as a proprietary facility. However, Vitol has trading relationships with virtually all the current facility owners at Port Everglades and Vitol may provide one or several of them with capacity from time to time.