An efficient trading operation requires a complete range of services, functions, and capabilities to be readily available within the organisation. It must have in place logistics, hedging, finance and other tools and solutions.
Coral Energy has in-house competences to perform all these functions and deliver on its obligations. It has logistics and infrastructure solutions which support its trade flows.
Trading is about correcting imbalances – in availability and quality.
To ensure commodity availability in time, it needs to be stored in times of excess and released in times of shortage. To manage quality to meet the customers’ expectations and the strict national and global standards products a sophisticated blending capability combining knowledge and technical facilities is required.
A successful global hydrocarbons trading operation replies on an extensive network of terminals for throughput, storage and blending. Coral has strategic presence at 23 ports and 40 terminals, including:
Aliaga Terminal in Izmir, Turkey is owned by Coral outright. The terminal provides throughput between pipelines/road transport and marine transportation for diesel, motor gasoline, jet and LPG as well as blending capabilities.
The terminal’s original facility capacity was 205,000 cubic metres for petroleum products comprising 32 storage tanks with the total capacity of 9 LPG tanks with the total capacity of 45,000 cubic metres. In a joint project with one of the leading oil majors, over the last 3 years the terminal capacity has been increased by another 12 tanks with capacity totalling 327,000 cubic metres. The terminal can receive vessels up to 60.000 DWT.
In 2021 Coral Energy through its strategic partner secured exclusive presence at BLB Terminal. Riga, Latvia.
The terminal is located in the Riga Free Port area served by Mangali rail station. The terminal has 70,000 cubic metres of storage for residual products and light products allowing for 5 segregations with 2 berths, 9 and 8 metre depth. With the rail track length of 7 km able to host 325 rail tank cars and a discharge rack with 92 positions, the terminal can confidently handle substantial export flows.Coral Energy are looking to further develop the BLB terminal infrastructure.
Petroleum supply chains are geographically long and complex.
It is not unusual for a feedstock to be taken from the Russian Far East across the vast expanse of the country to a Black Sea port to be further refined in Turkey, Spain or even the US.
A perfectly tuned multimodal logistics operation is needed to support that. Every year Coral Energy moves thousands of rail tank cars and relies on its strategic supply partners to move many more to Coral’s throughput facilities.
Our marine shipping desk is an integral part of the trading operation and has class leading management and staff to ensure smooth and cost-effective deliveries.
With hundreds of Coral’s marine fixtures, they handle millions of tons of liquid cargoes every year, from 5 kt Caspian barges to 120 kt Suezmaxes.
Managing price and currency risks is key to commercial success and is a pre-requisite to preventing commercial failure.
Coral Energy has a very onservative price risk policy. To mitigate price risks at every stage in the supply chain our derivatives desk uses the whole range of tools available in the market – from basic futures to complex option structures. We aim to hedge every run – from oilfield by pipeline or from refinery by rail to the throughput terminal, from the terminal by vessel to the customer. Coral derivatives turnover volume follows the growth of our physical trading and reflects our multistage hedging activities.
At every stage of the supply chain quantity and quality control is paramount.
When the transportation mode is changed, there is a quality and a quantity exposure. The product may be subject to evaporation or solidification, may mix with residue in tanks/pipelines/rail cars if not controlled properly, change its density in response to temperature, suffer residue formation due to agitation or storage.
Coral’s in-house chemists and specialists teaming up with the leading surveyor firms make sure that quantity and quality are stringently controlled at every stage to delivery.
Coral Energy always check environmental compliance of their logistics and storage contractors; carefully vet their vessels to meet the most stringent international safety requirements; ensure that environmental legislation of all jurisdictions we operate in is strictly adhered to; as a responsible terminal operator deploy and follows the industry’s best practices for environmental protection.
We work with leading international marine and credit risk insurers. In line with our low-risk appetite, we make sure that each cargo is covered against all potential risks, including war, strikes, riots and civil commotions as well as confiscation, expropriation, nationalization and domestication.
Our good track record with both Lloyd’s and mainland European insurance markets ensures that we can get the best cover and the best value.
In addition to cargo insurance, we make certain each vessel chartered by Coral has a first class charterer’s liability policy. Coral Energy also maintains comprehensive public liability cover for any potential risks to public and third parties.
Finally, our credit insurance is in place to minimise non-payment or non-delivery risks for open account sales or purchases.