Petroleum tank storage rental & transaction due diligenceSingapore   /   Rotterdam   /   Fujairah
Choosing storage

Dedicated vs shared storage: questions to ask

Establish whether the proposal provides exclusive tank use, a volume allocation or another arrangement. Ask what the customer controls and how inventory is recorded. Do not assume every terminal offers both options.

Aerial shot of a large industrial plant with storage tanks in Eyota, Minnesota.

Clarify what is being offered

Establish whether the proposal provides exclusive tank use, a volume allocation or another arrangement. Ask what the customer controls and how inventory is recorded. Do not assume every terminal offers both options.

Ask about quality and segregation

Confirm product compatibility, segregation, measurement and sampling responsibilities. Where products may be commingled, obtain a clear explanation of the applicable conditions and quality controls.

Review flexibility and cost

Compare minimum capacity, term, throughput and service charges on an equivalent basis. The best arrangement depends on the product and programme, rather than the label attached to the option.

Clarify what the proposed arrangement means

The words dedicated and shared should be defined in the actual proposal. Ask whether dedication refers to a tank, capacity allocation, a product grade or a period of use. For a shared arrangement, ask how inventory rights, product compatibility and movements are managed. Do not assume that a commercial label explains the physical configuration or the responsibilities of the parties.

  • Identify the space or allocation covered by the quote.
  • Ask how receipt and dispatch are scheduled.
  • Clarify any restrictions on grade changes.

Put quality and stock accounting questions in writing

Describe the product specification and the degree of segregation your transaction requires. Ask how quantities are measured and recorded, which movement records are provided and how discrepancies are addressed. Where independent inspection or testing is required, agree its scope and timing separately. The appropriate arrangement depends on the product, contract and operating procedure; a generic label cannot establish suitability.

  • Confirm whether co-storage is proposed and on what basis.
  • Ask which records support inventory reconciliation.
  • Identify the procedure for quality concerns.

Compare the commercial consequences

A dedicated arrangement may have a different minimum commitment or changeover cost from an allocation within a wider operation. Ask which cleaning, handling or exit charges are relevant and how unused capacity is treated. Compare the options using the same inventory and movement assumptions. Choose only after both the operating definition and the commercial commitment are clear.

  • Record included services and explicit exclusions.
  • Consider the cost of changing product or leaving early.
  • Request clarification wherever the contract and proposal differ.

Published by ${companyDisplayName()} · Practical guidance, reviewed 28 October 2026.

Your questions, answered

Frequently asked questions

Answers to help you prepare your next step.

Does dedicated storage always include dedicated pipelines?

Do not infer the equipment or access arrangement from the word dedicated. Ask exactly what exclusive facilities or capacity the proposal includes.

What questions matter if product may be commingled?

Clarify acceptance, quality responsibilities, quantity accounting and the actual commingling conditions before making a comparison.

Does every terminal offer both dedicated and shared capacity?

No such availability is assumed here. Ask the proposed operator which arrangements it can offer for the product and programme.

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