Shell and Greenergy are joint venture partners with Vopak in the project to convert the legacy-Petroplus site into a fully fledged import products terminal for the Thames.

Announced back in 2012, the development is one of the biggest projects currently underway in Europe to boost oil product import capacity.

The terminal sited to the east of London had been on track to start operations by the end of 2013.

But speaking at Platts Middle Distillates conference in Antwerp Thursday, Neerbos said the delay was down to the scale and difficulty of the project.

Trading sources said there had been issues with electrics, in particular, which has held up the conversion works. They said the full commissioning date had slipped to later this year, perhaps as late as the second half.

The terminal was said to have been left in poor shape by former owner Petroplus before it filed for administration in early 2012.

One source said the shared ownership structure of the terminal had made it difficult to agree remedial works, with extra costs running in the tens of millions of dollars.

A spokesman for the three Oilport developers declined to comment.

Greenergy’s CEO Andrew Owens told delegates at Platts Oil Storage conference in Amsterdam earlier this week that the company’s original decision to invest in the site two years ago had been complicated because the plant was already in administration, and part of its reconnaissance work had to be garnered from “Google Earth and the back of a van.”

He said: “When considering buying from administrators things to bear in mind are the capex is probably already low, and after previous cuts investment in peripheral storage tanks is probably low…a poor condition is assumed.”

But despite being unable to make a full assessment of the Coryton assets prior to purchase, Owens said the strategic advantage of the site in geographic terms far outweighed the unknown condition of the refinery’s storage and processing facilities at the time.

“Location, location, location is the key to success for a terminal conversion of a refinery,” he said. “Terminal conversion costs are not cheap. You have to change from a linear production to a ‘whirley operating system.’ They require significant material upgrades to condition also.”

Owens said one of Coryton’s main assets was its jetty. “Refineries typically have the deeper drafts to bring in crude. That is the biggest value to the refiner acquisitions for storage conversion,” he said.

Currently, LRs can only berth at Isle of Grain and Shell Haven in the Thames, two terminals used for jet fuel imports. Diesel imports are currently limited to smaller Medium Range type vessels, which increases the cost of importing the product into the UK, said traders.

Refined products and in particular middle distillates such as gasoil and diesel have been shipped on ever bigger vessels over the last few years, increasing the need for terminals with deep drafts.

Once operational, Thames Oilport will have a draft of between 12 and 13 meters and will be able to accommodate some of the world’s largest oil product tankers up to Long Range type vessel.

The Thames is one of Europe’s most congested import locations with, many tankers waiting to discharge longer than necessary due to limited capacity.

Traders said Thames Oilport should help to relieve some of the pressure on UK import logistics, said traders.

Owen said: “Having the access to long-distance large vessels of diesel is absolutely key. We are going to have to bring more, that is just a necessity.”

“Additionally, it is within 28% of the UK’s driving population, which makes it good for distribution,” he added.