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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2001

Vol. 6, No. 5 Week of May 28, 2001

PETROLEUM DIRECTORY: Van Waters and Rogers continues to serve Alaska as Vopak USA

Vopak USA will continue to support the long tradition of Van Waters and Rogers by supplying a wide range of chemicals to Alaska

Alan Bailey

PNA Contributing Writer

Whether used for the treatment of drinking water or for the de-icing of airplane wings, chemicals in some form support almost everything that we do. The ready availability of these chemicals depends on a complex supply chain stretching from a myriad of manufacturers to the end users of the chemical products.

Vopak USA, formerly known as Van Waters and Rogers, is the leading distributor of chemicals in the United States and has been supplying chemicals to Alaska since 1924.

Royal Vopak, an international chemical distribution corporation based in the Netherlands, bought Van Waters and Rogers in 1994, having been a major shareholder in the company since the mid 1980s. Van Waters and Rogers had been one of the largest chemical distributors in the United States for many years.

As from April 2 of this year, Royal Vopak decided to rename all of its subsidiary companies under the Vopak brand. Hence, Van Waters and Rogers became Vopak USA.

“Since 1924 we’ve been known as Van Waters and Rogers, that’s the name that is probably more prominent in this community with respect to chemical distribution,” Ken Lambertsen, general manager of Vopak USA Inc., told PNA. “Really the only thing that has changed is the name of the company.”

In Alaska since 1924

When Vopak, as Van Waters and Rogers, first started serving Alaska in 1924 the company supplied processing chemicals for the fishing industry. Since those days, the nature of the chemical supply business in Alaska has changed considerably: the fisheries now tend to operate out of Seattle, while the growth of the Alaska oil industry has transformed the industrial landscape.

“We have been supplying chemical commodities, products and services to oil and gas, mining, aviation, transportation, and have enjoyed our relationship with Alaska industry quite a bit,” Lambertsen said. “The nature (of business) has changed and we’ve adapted with the industrial growth of the state of Alaska.”

Along with its evolving business, Vopak has dramatically expanded its Alaska operations over the years. “I think in 1924 we did right in the neighborhood of about $225,000 worth of business in the state of Alaska,” Lambertsen said. “Well that’s a lot higher today!”

Core business is chemical distribution

Managing the transportation of chemicals forms the core of Vopak’s business.

“We bring most of the chemical commodities into the state on barge ships, tank cars, rail cars, and then we break them down into smaller packages here,” Lambertsen said. In Alaska, Vopak transfers the chemicals into drums and then ships them to the various places in the state where they are needed. Products range from water treatment chemicals for bush villages to gas dehydration materials for the oil industry.

“We have in our computer over 40,000 different sales keeping units, so that’s just an awful lot of product,” Lambertsen said. In Alaska we service the oil and gas industry, aviation, government , municipalities, military, mining industry and transportation industry, he said.

Marine transport to Alaska

Many of the chemicals arrive in Alaska by barge or ship from Tacoma, Wash. Vopak has contracts with the shipping companies and buys space in advance on some of the barges, in order to ensure a prompt service for its customers.

And most of the barges run on a regular schedule. “We know the sailing dates, so we then know what to tell our customers as far as the lead time to get something to them,” Lambertsen said. “If you were to call me today and say I need this … I could tell you pretty closely as to which day you would have it,” he said.

Over the years, Vopak has also built up substantial expertise in shipping products within Alaska. “All of the villages have water treatment they have to address … so we’ve shipped to every one of those villages — some by air, some by barge, some by boat,” Lambertsen said. “There’s also remote mining locations where it has to be air freighted in.”

Additionally, Vopak maintains stocks of chemicals in Alaska and elsewhere, in order to expedite the supply of commonly used products. “Our Anchorage (storage) facility is just one of 120 facilities that we have in the United States,” said Lambertsen, “so if it’s not in our Anchorage facility, immediately available, one of those 120 facilities is bound to have anything that anyone in Alaska would ever want.”

Vopak also manages storage locations in Canada and has made supply arrangements with a vast array of chemical manufacturers. “We bring a lot of resources to this state for whatever chemical requirements there should ever be here,” Lambertsen said.

Hazardous waste disposal services

As well as moving products to Alaska, Vopak operates a hazardous waste disposal service. “We kind of reverse route that waste back outside to disposal companies,” Lambertsen said.

Also, as part of its distribution services, Vopak knows exactly how to package and label materials. “There’s a number of issues that you’ve got to be aware of in the transportation of any of these chemicals,” Lambertsen said. “So you have to be fully aware of most regulations, such that you ship everything properly labeled, properly manifested and (with) all the documentation in place to do that.”

Analysis prolongs product life

In addition to its core business of distributing chemicals, Vopak provides analytical services through two major laboratories in Calgary and Houston. “In our energy group we provide a great deal in the way of analytical support,” Lambertsen said.

For example, Vopak analyzes the chemicals used to dehydrate gas. “In theory those chemicals would last forever ... if everything mechanically was working perfectly,” Lambertsen said. Regular analysis of the chemicals can identify problems with the dehydration equipment. “So, when we do our analytical testing of the product we are actually helping the customer get as much mileage out of that chemical as possible,” he said.

Shipping is main challenge

Alaska presents some unique challenges for transporting chemicals.

“I think the biggest challenge is just the transportation time (to Alaska),” Lambertsen said. “We can get anything and everything to Alaska that anyone would ever need. It’s just the time … and the additional expense of getting it here.”

And the weather in the Gulf of Alaska may also impact the transportation time. “There are occasions … when seas in the Gulf of Alaska are just a little too high, and they’ll lay up and wait out the storm until they can cross safely,” Lambertsen said. “That’ll put us behind schedule for four days at a time.”

Despite the logistical challenges, Lambertsen sees a bright future for business in Alaska. In particular, the development of natural gas will bring revenue into the state. “(Vopak) will be very much involved in the gas processing technology for the oil and gas people,” Lambertsen said.

And Vopak is proud of its history in Alaska. “We’re extremely proud of the privilege that we have had to serve the state of Alaska for so many years,” Lambertsen said, “to have grown up with the industry in this state, and to be a part of it from the very early years.” Under its new name, Vopak expects to be in the state for many years to come.






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