StocExpo 2026 – ‘This crisis is the one the industry has been afraid of for 30 years’

At StocExpo 2026, Jason Rajah – partner at Energex Partners, and Jonathan Martland – oil and chemicals partner at Energex Partners, took to the FETSA stage to opportunities and challenges in the tank storage industry in the current global context.

As was to be expected, the ongoing conflict in the Middle East was the key talking point.

‘Bulk storage in Europe has never been more important,’ said Jason. ‘We saw this in 2022 with the Russian invasion of Ukraine, and even more so now. There have been a number of global supply shocks, a huge amount of rerouting and supply being “shut in”. This means the European system will be hugely challenged in terms of fuel supply in the coming weeks and months. There is not enough stockholding to create a buffer.

‘Europe had already been challenged by high feedstock, energy and operating costs. Refineries are closing, which is good from a transition point of view, but it keeps our supply under pressure. So supply resilience is more important than ever. And the ongoing uncertainty has highlighted the need for better infrastructure to build that resilience. NATO is planning to deploy €20bn over the next 5 years, and to build 8000km of pipelines, which will reset the European landscape and make us better prepared in the event of another conflict.’

Jonathan emphasised how fast the landscape is changing by saying ‘anything I say now will be out of date by tomorrow, or perhaps even by the time I have finished speaking…’

He focussed his comments on how the Strait of Hormuz is crucial to the global supply chain. ‘The strait requires careful sailing and makes ships vulnerable. Insurers are currently unwilling to allow ships to sail through. There are two pipelines that can provide an alternative but supply is very limited. 7million barrels – half of a usual day’s supply – could be redirected, but it’s probably nearer a quarter of what is needed. Most of this goes to Asia but it will be a problem for the whole world’s refineries.’

He finished by saying: ‘This crisis is the one the industry has been afraid of for 30 years. The world has been taken by surprise at how quickly the effects have taken hold. For years we have relied on a small efficient, reactive infrastructure and supply source and this now feels slightly stupid. Total reliance on the small refineries we have left is just not possible.’