Tank Storage Agreement (TSA)

Tank Storage Agreement (TSA) is a contractual agreement between the owner of the petroleum products (such as crude oil or refined products) and the storage facility operator. The TSA outlines the terms and conditions under which the storage facility agrees to store the petroleum products.

Key Components:

- Specifies the time period for which the storage space is leased.

- Defines the amount of storage space reserved for the client.

- Details the costs associated with storage, including any additional services like heating, blending, or pumping.

- Outlines the responsibilities of both parties, including maintenance, insurance, and compliance with regulations.

Active TSA: When a TSA is referred to as "active," it means that the agreement is currently in effect, and the storage space is being used or is reserved for use under the terms specified in the contract.

Tank Storage Receipt (TSR) is a document issued by the storage facility that confirms the receipt and storage of a specific quantity of petroleum products. It serves as proof that the product has been delivered to the storage facility and is being held in the tank under the terms agreed upon in the TSA.

Key Components:

- Specifies the type, quantity, and quality of the product stored.

- Storage Location: Indicates the specific tank or location within the storage facility where the product is stored.

- Date of Receipt: Records the date on which the product was received and stored.

- Ownership: Confirms the ownership of the stored product, which remains with the client unless otherwise transferred.

- A TSR can be used in various transactions, including sales or transfers of ownership, as it provides proof that the product is physically stored and available.

Key Differences Between Active TSA and TSR

- TSA: A contractual agreement outlining the terms and conditions for the storage of petroleum products.

- TSR: A receipt or certificate that confirms the actual storage of specific products in the storage facility.

Timing and Function:

- Active TSA: Refers to an ongoing agreement under which storage space is reserved and available for use.

- TSR: Issued after the product has been physically delivered and stored in the facility, serving as evidence of storage.

Role in Transactions:

- TSA: Primarily used to establish and manage the relationship between the product owner and the storage facility, including the allocation of storage space.

- TSR: Often used as a tradeable document or proof of stored goods in financial or sales transactions.

Active TSA is the agreement in force, governing the terms of storage.

TSR is the receipt confirming that a certain quantity of product is stored under those terms.

Both documents are critical in ensuring transparency, security, and proper management of petroleum products in storage facilities.