Oil terminal
An oil terminal, also known as a tank farm or oil depot, is a place that stores oil, petroleum and petrochemical products and then moves them to customers or other storage sites. It usually has many storage tanks, systems to transfer oil between tanks, pumps, loading equipment for trucks or barges, and ship loading or unloading gear at marine terminals, plus pipelines for moving products in and out.
Historically, open pits and simple reservoirs were used for storage. The vertical cylindrical steel tank design was developed by Russian engineer Vladimir Shukhov in the 1880s, showing that a cylindrical shape used the least steel and withstood stresses well. By the 1890s, many such tanks were built in Russia. Today’s terminals may be near refineries or located on coasts so ships can load or discharge cargo. They are often connected to pipelines and can be served by rail, barges, or road tankers, and they sit near cities to supply road tankers for local petrol stations and other users.
Most terminals do not process or manufacture products on site. The oil stored there is usually already in its final form for delivery, though blending or adding certain additives can occur. Some terminals can stabilize crude oil to remove lighter gases before storage and transport. Marine terminals have jetties for deep-water access and loading arms to transfer cargo to and from ships. Some also have vapor recovery systems to limit emissions. Crude oil from offshore production may be received, and lighter fractions can be removed to produce a stable product.
Airports often have dedicated oil depots, called fuel farms, to store aviation fuel (Jet A or AVGAS) before it is pumped to aircraft. Fuel can be carried to planes by road tankers or a hydrant system. Storage tanks come in different types: fixed-roof tanks, internal floating-roof tanks, and external floating-roof tanks. Floating roofs reduce evaporation for more volatile products. Some tanks are heated to lower the oil’s viscosity for easier pumping, using hot water or steam.
Some terminals store liquefied petroleum gases in Horton spheres, such as propane and butane. The design, construction, operation and maintenance of an oil terminal must follow local and international codes, standards and safety rules to protect people and the environment. Key safety concerns include preventing leaks, protecting against fires, and ensuring proper firefighting measures.
There have been notable incidents, such as the Buncefield fire in 2005, where an overflow led to a massive explosion and damaged nearby tanks. In 2024, during the invasion of Ukraine, a tank farm in Proletarsk, Russia, was set ablaze by a drone strike and burned until firefighters stopped the blaze days later. Ownership of oil depots varies, and owners may provide services or access to other companies as needed.
This page was last edited on 3 February 2026, at 02:27 (CET).