WILLEMSTAD – Recent oil activity at Bullenbaai does not automatically prove that Curaçao can build a profitable long-term business around large-scale crude oil storage, according to environmental organization Clean Air Everywhere (CAE).
CAE is questioning the economic case for developing Bullenbaai as a standalone oil storage terminal, pointing to relatively narrow margins in the storage business and the age of some of the existing infrastructure.
The organization says significant investment could be required in tanks, pipelines, jetties and other infrastructure before Bullenbaai can compete effectively for international storage business.
CAE also argues that the disappearance of a traditional refinery changes the economic logic behind maintaining large quantities of crude oil on Curaçao.
When a refinery operates nearby, stored crude has an obvious destination: it can be processed locally. Without a refinery, oil brought to Curaçao for storage eventually has to be loaded onto another vessel and transported elsewhere.
That additional step can only make economic sense if traders, producers or other customers have a specific commercial reason for using Curaçao as an intermediate storage location, according to CAE.
The organization therefore believes that occasional or recent oil transshipment activity should not be interpreted by itself as evidence of a sustainable long-term business model.
Any company seeking to develop Bullenbaai primarily as an independent storage terminal should first demonstrate that there are structural customers, sufficient volumes and revenues capable of supporting the investments required, CAE said.
The issue is particularly important as 2BAYS develops a new strategy for the former refinery assets. CAE believes Curaçao must determine whether Bullenbaai's future should primarily involve oil storage or whether the site could be combined with other industrial, maritime and energy-related activities.
The organization argues that decisions involving these strategic assets should ultimately be based on demonstrable economic prospects rather than simply preserving Curaçao's historical role in the oil industry.