Often operating behind the scenes, liquid terminals play a critical role in sustaining global energy flows and industrial supply chains. From crude oil and refined products to emerging fuels, these infrastructures serve as essential nodes connecting production, transportation, and consumption across continents.
Leakhena Swett, President of the International Liquid Terminals Association (ILTA), offers a strategic view of how the terminal sector is evolving amid shifting energy dynamics, regulatory pressures, and increasing demand for sustainability. In this conversation, she explores the challenges and opportunities facing terminal operators, as well as the growing importance of collaboration, safety, and resilience in maintaining global energy stability.
- Liquid terminals are often described as the “hidden backbone” of global energy and petrochemical supply chains. From ILTA’s perspective, how critical is their role today in ensuring energy security and market stability?
Liquid terminals are essential to global energy security and economic stability. While much of the public focus is on production or transportation, terminals are the infrastructure that connects the entire supply chain. They store, transfer, blend, and distribute the products that industries and consumers rely on every day, from crude oil and refined products to chemicals, biofuels, and emerging energy products.
Terminals provide flexibility and resilience to the market. During supply disruptions, weather events, geopolitical instability, or shifts in demand, terminals help maintain operational continuity and product availability. Without terminal infrastructure, the energy supply chain would be far more vulnerable to volatility and logistical constraints.
What makes the industry unique is that terminals operate at the intersection of marine, pipeline, rail, truck, and manufacturing logistics. They are not simply storage facilities; they are strategic assets that enable commerce, energy reliability, and industrial productivity worldwide.
- As global energy markets evolve—particularly with LNG expansion, renewable fuels, and shifting trade flows—how are liquid terminals transforming to meet these new demands?
The terminals industry has always evolved alongside the energy market and we are seeing that transformation accelerate. Operators are investing heavily in infrastructure upgrades, automation, and flexibility to accommodate changing product mixes and trade patterns.
Many facilities are adapting existing assets to handle renewable diesel, sustainable aviation fuel, biofuels, hydrogen-related products, and other lower-carbon energy solutions. At the same time, global LNG growth and shifting geopolitical trade flows are driving demand for additional storage and export capacity.
What is particularly important is that terminals are designed to adapt. Many of our members are leveraging existing infrastructure to support both traditional and emerging energy products simultaneously. That flexibility will be critical throughout the energy evolution because the world will require a balanced and reliable energy mix for decades to come.
- ILTA plays a key role in representing the industry before regulatory bodies and policymakers. What are the most pressing regulatory challenges facing terminal operators today, and how is ILTA helping navigate them?
One of the biggest challenges facing terminal operators today is navigating increasingly complex and overlapping regulations across safety, environmental compliance, cybersecurity, workforce issues, and infrastructure siting and permitting.
Our industry supports strong safety and environmental standards but regulations also need to be practical, technically achievable, and aligned with the realities of operating critical infrastructure. Many terminal operators are working through requirements from multiple federal, state, and local agencies simultaneously, creating significant operational and administrative challenges.
ILTA’s role is to be a constructive and credible voice for the industry. We work closely with policymakers, regulators, and industry stakeholders to provide technical expertise and advocate for balanced policies that support safety, environmental compliance and stewardship, and supply chain reliability.
We’ve also focused on improving education and awareness in our industry by developing materials that more clearly explain terminal operations and their importance as critical infrastructure in the energy supply chain. In addition, we’ve helped connect regulatory agencies with our members through facility tours and firsthand operational discussions, which creates a stronger understanding of how terminals operate and the challenges operators face.
Beyond advocacy, ILTA provides members with guidance, education, and opportunities for collaboration, enabling companies to stay informed and implement evolving requirements effectively.
- With increasing pressure around ESG and sustainability, how is the liquid terminal industry adapting, and what role does ILTA play in guiding this transition toward more sustainable operations?
The liquid terminal industry recognizes that sustainability, operational excellence, and long-term resilience go hand in hand. Many terminal operators are investing in emissions-reduction technologies, energy-efficiency improvements, infrastructure modernization, and programs that support safer, more sustainable operations.
At ILTA, we’ve worked to help guide these conversations through the development of our Environmental, Social, and Governance (ESG) Principles, which reflect our industry’s commitment to environmental stewardship, safety, community engagement, workforce development, andethical operations.
Our ESG Principles emphasize areas such as air quality, energy efficiency, continuous safety improvement, community engagement, diversity and inclusion, and strong governance practices. We also support policies that encourage innovation and the adoption of new technologies to help reduce emissions and improve operational performance across the industry.
Importantly, ILTA’s role is not only advocacy, but also education and collaboration. We work to connect regulators, policymakers, and stakeholders with terminal operators to improve understanding of how terminals operate and the critical role they play in the supply chain. That includes sharing industry expertise, facilitating dialogue, and even hosting facility tours and operational demonstrations to help bridge the gap between policy and real-world operations.
As the energy landscape continues to evolve, terminals will remain essential infrastructure for both traditional energy products and emerging lower-carbon fuels. Our industry is focused on being part of the solution by continuing to improve safety, efficiency, sustainability, and operational resilience while maintaining reliable supply chains.
- As global supply chains become more complex and volatile, what are the most underestimated risks in terminal operations today?
One of the most underestimated risks is the interconnected nature of today’s supply chains. A disruption in one area, whether from extreme weather, cyber incidents, labor shortages, transportation bottlenecks, or geopolitical instability, can quickly impact multiple sectors and regions.
Cybersecurity is another growing concern. As terminal operations become more digitized and automated, protecting operational technology and critical infrastructure systems becomes increasingly important.
Workforce challenges are also significant. The industry is managing generational transitions while simultaneously requiring highly skilled workers to operate increasingly sophisticated facilities.
Finally, infrastructure resilience remains critical. The frequency of severe weather events and natural disasters continues to reinforce the need for robust emergency preparedness and resilient operations.
- ILTA brings together operators, suppliers, and stakeholders across the value chain. How important is collaboration in addressing industry-wide challenges such as infrastructure resilience, decarbonization, and supply chain efficiency?
Collaboration is essential. No single company or organization can address these challenges alone. The terminal industry operates within a highly interconnected ecosystem that includes terminal operators, energy producers, carriers, suppliers, regulators, technology providers, and local communities.
ILTA’s strength lies in its ability to convene these stakeholders and foster meaningful dialogue on shared priorities. Whether the focus is safety, sustainability, infrastructure resilience, or operational efficiency, collaboration accelerates innovation and helps develop practical solutions.
We have seen tremendous value when industry competitors come together to share lessons learned, technical expertise, and best practices. That collaborative spirit is one of the defining characteristics of the terminal industry.
- With an industry facing generational shifts and talent challenges, how is ILTA supporting workforce development and preparing the next generation of leaders in the terminal sector?
Workforce development is one of the most important priorities for our industry’s future. We are seeing a generational transition across many sectors of energy and industrial infrastructure, and attracting the next generation of talent is critical.
ILTA supports workforce development through education, networking, mentorship opportunities, and professional development programs. We are also working to raise awareness of the wide range of career opportunities in the terminal industry, from operations and engineering to environmental management, technology, logistics, and leadership.
The industry offers long-term, high-impact careers essential to the global economy, and we need to continue communicating this message to students and emerging professionals.
Equally important is leadership development. Preparing future leaders requires investing in collaboration, communication, technical expertise, and strategic thinking across the workforce.
- What message would you like to share with industry leaders and decision-makers about the strategic importance of terminals in the future of global energy and industrial infrastructure?
My message is simple: terminal infrastructure matters now more than ever. As the world navigates the wider energy evolution, supply chain complexity, infrastructure modernization, and growing global demand, terminals will remain foundational to economic stability and energy reliability.
Investing in resilient infrastructure, workforce development, safety, and innovation is not optional; it is essential. Policymakers and industry leaders must recognize that strong terminal infrastructure supports not only energy markets but also manufacturing, transportation, trade, and national security.
The terminal industry has consistently demonstrated resilience, adaptability, and operational excellence. With continued collaboration and investment, it will remain a critical enabler of global energy and industrial progress for decades to come.
This article was developed by Leakhena Swett of ILTA and published as part of the eighth edition of Inspenet Brief magazine (July 2026), dedicated to technical content for the energy and industrial sectors.
