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Tank Storage Magazine is the world’s only publication dedicated 100% to the bulk liquid storage industry. It is read by terminal managers, senior engineers, logistics/distribution managers and CEOs within oil, gas and petrochemical facilities as well as third party terminal operators.
Citation preview
2013: is luck in store for the storage sector?
Double capacity: double trouble?
In the storm’s wake
january/february 2013
We speak to the local terminals about whetherfujairah is in danger of too much storage supply
Hurricane Sandy put terminals, tanks and thesupply chain to the ultimate test
The voice of the storage terminal industry
Volume no. 9 Issue no. 1
regIonal focuS: middle east
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KAN adv - Tank Storage Magazine (297x210)Antwerp JAN_FEB .indd 1 11-01-13 09:59
TANK STORAGE • January/February 2013 1
It is safe to say that over the last few years,
where many sectors have struggled to survive
in troubled economic times, the terminal
industry has remained relatively resilient.
To see if the same will remain true for
2013 we’ve interviewed a selection of the
market leaders to hear their thoughts.
Despite a decline in demand for many
products and a slower than expected economic
recovery, all the operators we spoke to reported
positive results from 2012, with investments
and growth as fervent as ever.
What this comes down to,
we’ve found, is not so much luck,
but strategy and above all a deep
understanding of the market.
Prolonged backwardation
continues, for example, leading to
lower utilisation rates compared
to previous years. In Singapore
some of the biggest fuel oil traders
in Asia are even giving up tanks,
saying that onshore storage
has become just too expensive
under these market conditions.
Throughput, however,
remains strong as customers
use tankage more intensively. To capitalise
on this, operators need to ensure their
terminals work as effectively as possible,
focusing on customer service and safety.
When it comes to staying in the red,
the importance of understanding your
location cannot be underestimated.
In North America, for example, shale play
developments continue to stimulate new demand
for capacity, and refinery closures, product
imbalances and biofuels growth all play their part.
It is the Middle East, however, that is the
shining star of the moment. Storage capacity in
the region is anticipated to double to 15 million
m3 by 2015 from 5.4 million m3 at the end of 2012,
largely due to new refineries, pipelines and its
emergence as a new break bulk location.
Within the space of just a year up to
six terminals have or will come online,
prompting the question of whether such
a growth spurt may prove too much.
Within this issue we’ve put this question to
the local operators. The general consensus
is that over capacity will not be a problem
in the long term, and that growth will
stabilise in the next two to three years as the
market absorbs all the new capacity.
Some terminals, such as Vopak and VTTI,
however are sensibly exercising caution.
Despite having the location and space
in Fujairah and the potential to grow, the
companies are unwilling to commit to a timetable
for expansion until it is justified by market demand.
This is something the industry, as well as
us, will be keeping a close eye on this year.
For the first time Tank Storage magazine will
be the lead partner in a new event in Dubai, Tank
Storage Forum: MENA 2013, in April this year.
As mentioned, in order to succeed in
this business it is absolutely critical to stay
ahead of market changes. And that’s
where we come in – we aim to keep you
informed and, if last year is anything to go
by, 2013’s going to be another busy one!
Best wishes,
Margaret
Get a head start to the New Year
comment
Margaret DunnPublisher
As we enter 2013 there’s been a lot of talk about whether this year is lucky or unlucky. But when it comes to business, very little comes down to luck
contents
January/February 2013
Volume 9 issue 1
Horseshoe Media LtdMarshall House124 Middleton Road,Morden,Surrey SM4 6RW, UKwww.tankstoragemag.com
manaGinG DireCTorPeter PattersonTel: +44(0)20 8648 [email protected]
Publisher & eDiTorMargaret DunnTel: +44 (0)20 8687 [email protected]
DePuTy eDiTorJames BarrettTel: +44 (0)20 8687 [email protected]
assisTanT eDiTorKeeley DowneyTel: +44 (0)20 8687 [email protected]
aDVerTisinG sales manaGerDavid KellyTel: +44 (0)203 551 [email protected]
souTh ameriCan sales REpRESENTATivERoberto Bieler+55 21 3268 2553+55 21 9465 [email protected]
ProDuCTionAlison BalmerTel: +44 (0)1673 [email protected]
subsCriPTion raTesA one-year, 6-issue subscription costs £150 (approximately $240/€185 depending on daily exchange rates). Individual back issues can be purchased at a cost of £30 each
Contact: Lisa LeeTel: +44 (0)20 8687 4160Fax: +44 (0)20 8687 [email protected]
No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Tank Storage are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher.
ISSN 1750-841X
coNteNts
news
features
1 Comment
2 Contents
4 Terminal news
24 Technical news
30 incident update
32 Germany: new changes explained
34 2013: is luck in store for the storage sector? A snapshot of operators across the globe
share their hopes for the year to come
43 Double capacity: double trouble? Operators in Fujairah are feeling pleased
with themselves: refinery capacity is growing, the new ADCOP pipeline has just opened and the location is attracting traders from all across Asia. We speaks to the main players to find out whether they are now in danger of overcapacity..
48 Tank terminal update – middle east
53 in the storm’s wake Hurricane Sandy
shut oil distribution infrastructure in the Northeast down cold at the end of last year, putting terminals, tanks and the supply chain to the ultimate test
2 January/February 2013 • TANK STORAGE
Follow us on Twitter: @tankstorageinfo
81Covering all anglesHow one terminal combined GPS and laser scanning for a comprehensive insight into the facility’s containment capacity
72searching for a liner resistant to benzene
coNteNts
features60 renovated tank
foundations – design and safety considerations
63 is a floating roof enough for shale oil tanks?
66 making the commitment Since degassing is one
of the most dangerous and regulated procedures in a refinery, it’s important for all vendors to remain 100% dedicated to compliance and safety
67 Vapour recovery: a glossary of terms
71 logistics solution for marine loading arms holds key to refinery expansion
74 how to avoid breaking the supply chain
88 events page ad index
Front cover courtesy of CST Covers
56Training: just line a fine wine
41a Prime locationWith so much happening in Fujairah, Tank Storage magazine talks to IL&FS Prime Terminal, one of the latest companies to break ground in rapidly developing region
2013: is luck in store for the storage sector?
Double capacity: double trouble?
In the storm’s wake
JANUARY/FEBRUARY 2013
We speak to the local terminals about whetherFujairah is in danger of too much storage supply
Hurricane Sandy put terminals, tanks and thesupply chain to the ultimate test
The voice of the storage terminal industry
Volume No. 9 Issue No. 1
REGIONAL FOCUS: MIDDLE EASTFC_TSM_Jan-Feb_2013.indd 1 16/01/2013 16:56
TANK STORAGE • January/February 2013 3
85Tank storage asia 2012: good news all round
76high risk upgradesThe Port of Los Angeles is a flurry of activity as pressure intensifies to upgrade and repair oil terminals, some of which have been labelled ‘high risk’ by California state officials
contents
terminal news
CLH Group plans €60 million investment throughout 2013
Calumet completes acquisition of NuStar terminal and refinery
URS to assess Holly Energy Partners proposed pipelines
Spain-based oil transportation and
storage provider CLH Group has set
aside €60 million which it will earmark
this year for infrastructure network
expansions and improvements.
Around €41 million of this total
budget will be used for improving the
company’s storage terminal facilities.
This includes completing Phase I of
a new storage facility at the Port
of Bilbao and €2 million that will be
used to finalise the construction of
new storage terminals in Castellanos
de Moriscos (Salamanca). A further
€3 million will be used for expanding
storage capacities at other sites.
Additionally, various safety and
environmental improvement projects will
get underway this year with a €17 million
investment, and a further €15 million to
be spent on operational improvements.
CHL has dedicated €15 million to
extending its pipeline network, more
than €5 million of which will go towards
building a pipeline that will connect
its Torrejon de Ardoz-based storage
terminal and the Madrid-Barajas airport.
The company says it also wants
to expand and improve a number
of its CLH Aviacion facilities.
Between 2007 and 2011 CLH
Group spent in excess of €750 million to
establish 1.2 million m3 of new storage
capacity and over 500km of pipeline
infrastructure. This included the start-
up of new storage terminals in Arahal,
Seville; Mahon, Minorca; and Burgos.
The group also expanded storage
capacity at several centres, including
in Albuixech (Valencia), Huelva,
Leön, Gijón, Son Banya (Majorca),
Navarre, Barcelona, Castellón,
Algeciras, Cartagena and Malaga.
This significant capital expenditure
also saw expansion and improvement
works carried out at several airport
facilities, such as Alicante, Malaga,
Vigo, San Javier, Pamplona and La
Rioja. CLH also built on its aviation
fuel distribution network at Barcelona
airport, with the construction of two
new fuel supply lines between the CLH
Aviación facility and the new hydrant
network in El Prat’s new Terminal 1.
Calumet Speciality Products,
a hydrocarbon product refiner
and processor, has finalised
the previously-announced
acquisition of NuStar Energy’s
San Antonio, Texas-based
refinery, the Elmendorf
terminal, and crude oil pipeline
connecting the two facilities.
Calumet acquired the assets
for $115 million (€87 million): $100
million purchase price and $15
million closing date inventory.
The San Antonio refinery,
with a 14,500 bpd throughput
capacity, handles various
products including jet fuel,
ultra-low sulphur diesel,
naphtha, reformates, LPG,
speciality solvents and
other specialised fuels.
The Elmendorf terminal
is approximately 12 miles
away from the refinery
and stores the processed
crude oil at the refinery.
After signing the purchase
agreement, NuStar said in a
statement that its decision
to sell the facility is part of
its strategic redirection to
focus more on its pipeline
and storage operations.
‘This transaction will give
the refinery employees the
opportunity to be a part of a
refining company with multiple
refineries, that also has the
depth of refining resources
and expertise to provide the
support the refinery needs to
succeed over the long-term,’
NuStar president and CEO Curt
Anastasio said at the time.
NuStar purchased the
refinery and terminal out of
bankruptcy in April 2011 for
$41 million, and the company
has invested approximately
$54 million since then on
improvements. For example,
it built and put into service
a 12-mile pipeline between
the terminal and the
refinery that now moves the
crude to the refinery.
Holly Energy Partners has selected URS to carry out
initial engineering, routing and cost estimates on
two new pipelines the company hopes to develop.
The first proposed pipeline will transport
crude oil from Cushing, Oklahoma to a refinery
in Tulsa, owned by independent oil refining
company HollyFrontier’s subsidiary Holly
Refining and Marketing – Tulsa (HRM Tulsa).
This 20” pipeline would stretch 50 miles,
carrying local and Canadian crude oil to
HRM Tulsa’s 125,000 bpd facility. Crude
oil processed at the refinery is currently
transported on pipelines owned by Sunoco
Logistics and Magellan Pipeline Company.
The second proposed pipeline by Holly
Energy Partners is a 100-mile, 8” interstate
petroleum products pipeline between Denver,
Colorado and the 52,000 bpd Frontier Refining-
owned Cheyenne, Wyoming refinery. Frontier
Refining is another subsidiary of HollyFrontier.
Petroleum products produced at
Frontier Refining’s Wyoming-based refinery
are currently transported to Denver on
the Rocky Mountain Pipeline’s products
line owned by Plains All-American.
CLH will invest €41 million on storage terminal improvements this year
4 January/February2013•TANK STORAGE
terminal news
TANK STORAGE •January/February2013 5
Crude oil throughput grows at Port of Rotterdam The Port of Rotterdam has reported
a 1.7% increase in freight throughput,
with a total 442 million tonnes of cargo
passing through the port in 2012.
Speaking about liquid bulk throughput
Hans Smits, president and CEO of the Port
of Rotterdam Authority, says: ‘More crude
oil and oil products in particular were
handled. The latter category has actually
tripled in size over the past 10 years.
That shows that the port is increasingly
becoming a hub for global trade. This
helps it to continue to grow, as global
trade generally develops faster than the
Dutch and the European economies.’
The port enjoyed a 6% increase in
crude oil during 2012. The handling of
mineral oil products was up by 12%.
The port authority attributed this to
increased oil product trade, mainly
due to price differences of fuel oil
in Europe and Asia. For example,
shipping Russian fuel oil via the Port of
Rotterdam to the Far East is beneficial.
The throughput of naptha, gasoil, diesel,
kerosene and petrol also grew last year.
LNG imports, on the other hand,
were low as it was transported
mainly to the Far East rather than
Europe due to high prices in Asia.
In a statement, the authority said the
handling of other liquid bulk products
rose by 4% due to the start-up of Neste
Oil’s palm oil imports and rising biodiesel
imports. A total 214 million tonnes of
liquid bulk was handled in 2012.
The Port of Rotterdam Authority
expects growth of around 2% this year,
with 2013’s throughput levels expected
to reach around 450 million tonnes.
Crude oil handling increased last year at the Port of Rotterdam
Gibson Energy to spend $137m on terminal and pipelines sectorCanadian independent midstream
energy company Gibson Energy
will invest $304 million (€234
million) in 2013 after its capital
spending plans were approved
by its board of directors.
Under the plan, Gibson will
spend 77% of the total $304 million
on growth investments, $137 million
of which is earmarked for the
terminal and pipelines segment.
Investments are also planned
for the truck transportation and
environmental services segments.
‘Planned spending is heavily
weighted towards our terminals and
pipeline segment, which should
enable our integrated oil-levered
assets to provide diversified cash
flow and stability through various
commodity and drilling cycles,’
explains Gibson Energy’s president
and CEO Stewart Hanlon.
Throughout 2013, Gibson’s
funds will go towards continuing
to expand the Hardisty Terminal
by adding large storage tanks
backstopped by long-term contracts
and unit train rail opportunities, and
growing the Edmonton Terminal by
increasing pipeline connectivity.
The company also wants to
increase its presence in the North
American oil plays such as the
Western Canadian Sedimentary
Basin, Bakken, Niobrara, Granite
Wash, Eagleford, Tuscaloose Marine
and the Gulf of Mexico regions
through expanding its terminal
and pipelines business in the US.
Gibson will spend approximately
$69 million on upgrades and
replacements this year. That is higher
than previous years due to the
growth in assets across the company
and resultant EBITDA growth.
Gibson believes its 2014 spending
capital will exceed $200 million
with 60-65% of this allocated to the
terminals and pipelines segment.
MIC companies recover from Hurricane Sandy
Macquarie Infrastructure (MIC) has reported
that its operating companies International-
Matex Tank Terminals (IMTT) and Atlantic
Aviation have largely recovered from the
effects of Hurricane Sandy in the US.
IMTT’s bulk liquid storage facility at
Bayonne, New Jersey was affected during
the storm but the company says the facility
is now substantially receiving and delivering
all products by all modes of transport.
Permanent power has been restored
to most of the facility and those parts still
without have backup systems in place.
Atlantic Aviation’s fixed base operations at
airports in Teterboro, New Jersey; Farmingdale,
Long Island; and Bridgeport, Connecticut, as well
as its heliport in New York City were damaged or
disrupted by the hurricane. Each facility has been
restored and normal operations have resumed.
MIC expects its financial results for the fourth
quarter to reflect approximately $2.3 million (€1.7
million) in payments of insurance deductibles and
less than $5 million in total impact from the storm.
Longwei Petroleum upgrades storage at Gujiao facility China-based energy company Longwei
Petroleum Investment has completed
upgrades and scheduled maintenance works
at its storage facility in Gujiao, Shanxi Province.
The upgrades included new coatings
for its large storage tanks. The facility
has a storage capacity of 70,000
tonnes of petroleum products.
Longwei Petroleum’s Gujiao plant has been
in service since November 2009. The company
currently has three facilities in Shanxi Province.
The company’s Huajie facility is the most
recent and came online in October last year.
Fifty-five oil projects to come online by Q1 this year Fifty-five Mehr Mandegar oil projects worth
$21.5 billion (€16 billion) are planned to
come online in Iran by the end of March.
Thirty-two of the 55 projects are oil and
13 petrochemical. A further eight are gas
and two are oil refining projects. Two of
the 13 petrochemical projects – Kavian
Petrochemical Plant and West Ethylene
Pipeline – worth $2 billion began operations
in December. The remaining projects are
scheduled to come online gradually.
Mohesen Khojastehmehr, the deputy
oil minister for planning and supervision on
hydrocarbon resources and secretary of
Mehr Mandegar Projects HQ at the Petroleum
Ministry, was reported to have said: ‘The
Kermanshah petrochemical plant plus eight
projects in Imam Kohmeini Port, south of Iran,
including an NF3 project are ready for start-up.’
Government to reacquire oil tank farm from IOC Sri Lanka’s United National Party government
is to reacquire the Trincomalee oil storage
tank farm in China Bay that it currently
leases to the Indian Oil Corporation (IOC).
The tank farm is based on 850 acres
of land and consists of 99 storage tanks,
each with a capacity of 12,100 tonnes. It
connects to the Trincomalee harbour and
is the largest tank farm located between
the Middle East and Singapore.
It was reported that IOC has violated
a number of government standards and
a cabinet paper is soon to be issued for
the reacquisition of the tank farm.
news in brief...Westway sells foreign terminals to ED&F Man Holdings
TransMontaigne to participate in BOSTCO project
Plains All American invests $125m in Eagle Ford assets
An affiliate of private equity investor
EQT Infrastructure II will acquire all
of the outstanding equity securities
of bulk liquid storage and liquid
animal feed supplement provider
Westway Group after the group
entered into a definitive agreement.
EQT will invest approximately
$419 million (€318.4 million) in
aggregate cash consideration, or
$6.70 in cash per common share
(the merger agreement).
Westway has also entered into a
definitive agreement to sell a number of
its bulk liquid storage terminals located
in Ireland, Denmark, Korea and the UK
to an affiliate of ED&F Man Holdings,
its largest stockholder, for a purchase
price of around $115 million, in addition
to its liquid feed supplement business
called Westway Feed Products.
‘EQT Infrastructure II has a strong
track record in the bulk liquid storage
sector and will be an excellent
partner for our terminal employees
and customers,’ says Francis Jenkins
Jr., chairman of Westway and
chairman of the special committee.
Glen Matsumoto, partner at EQT
Partners in the US, investment advisor
to the EQT Infrastructure II, adds:
‘Demand for storage services continues
to grow as the global supply chain
for a number of industries becomes
increasingly complex. We believe that
Westway’s ability to provide reliable
storage services to existing customers
while expanding storage services
to other growing markets will help
foster its next stage development.’
Under the terms of the merger
agreement, Westway’s stockholders
will receive $6.70 in cash for each
outstanding share of Westway
Class A Common Stock or Class
B Common Stock they own.
The transaction is expected
to close later this quarter.
Petroleum fuels distributor
TransMontaigne Partners has received
approval from Morgan Stanley to
acquire a 48.75% ownership interest in
the Battleground Oil Specialty Terminal
Company (BOSTCO) terminal project.
The BOSTCO project involves
building a new black oil terminal
facility on the Houston Ship Channel
– part of the Port of Houston in
Texas, US – for an estimated $415
million (€317 million). The initial phase
involves the construction of 50 storage
tanks totalling 6.1 million barrels
capacity for residual fuel, feedstocks,
distillates and other black oils.
The terminal will also feature one
of the deepest vessel drafts in the
Houston Ship Channel. Its development
comes at a time when the trend
of exporting petroleum products
overseas continues to grow.
The transaction is expected to
be finalised before February, subject
to agreements and approval from
TransMontaigne’s board of directors.
Plains All American Pipeline
(PAAP) has acquired crude oil and
condensate gathering assets from
a Chesapeake Energy subsidiary.
The assets are located in the
Eagle Ford area of south Texas and
cost PAAP approximately $125
million (€95.5 million), including:
• 300,000 barrels of storage
capacity under construction
• 40 miles of crude oil/
condensate gathering pipelines
with a throughput capacity
of around 50,000 bpd
• 150,000 barrels of existing crude oil
and condensate storage capacity
• Truck unloading terminal.
‘The acquired assets are
complementary to and will be
connected with our existing crude oil
and condensate gathering systems,’
PAAP said in a statement.
6 January/February2013•TANK STORAGE
terminal news
terminal news
TANK STORAGE •January/February2013 7
xx January/February2013•TANK STORAGE
terminal news
featured topics in the next edition of Tank Storage magazine8 Tank gauging8 Tank cleaning and petroleum reclamation8 Fire safety8 EPCM8 Blending, injection technologies, dosing 8 equipment and additives8 Tank cutting, maintenance and repair8 StocExpo preview
To get advertising prices or to request a copy of the media pack for 2013 please contact: DavidKellyon+44(0)2035515754 or [email protected]
For editorial information please contact MargaretDunnon+44(0)2086874126 or [email protected]
Don’t miss out on the March/April edition of Tank Storage magazine. Advertise your company and have EXCLUSIVE delegate bag distribution at StocExpo Antwerp!
Tank Storage magazine is the official media partner to StocExpo. We are the ONLY publication distributed in every delegate bag and distributed to all visitors at the showREGIONAL FOCUS: TANK STORAGE IN ASIA
Oiltanking keeps on growing
Breaking ground in the literal sense
DECEMBER 2012
The company’s senior management talks us through the latest acquisition of Helios terminal in Singapore
With the Jurong Rock Cavern operatorship still scheduled to begin next year, JTC discusses the project so far
The voice of the storage terminal industry
Volume No. 8 Issue No. 5
FC_TSM_Dec_12.indd 1 27/11/2012 17:36
No waffle in
Bonus distribution8 StocExpo, Antwerp - exclusive delegate bag
distribution
8 Tank Storage Forum, Middle East
8 IIR Bulk Liquid Storage Conference, South Africa
OfficialStocExpo Exhibition
Catalogue
terminal news
Spectra Energy to purchase 100% of Express-Platte pipeline Pipeline transportation and energy
storage company Kinder Morgan
Energy Partners is to sell its 33% stake
in the Express-Platte pipeline.
Natural gas infrastructure firm
Spectra Energy is acquiring 100% of
Express-Platte for $1.49 billion (€1.14
billion) and this means Kinder Morgan’s
Canada-based JV partners, Ontario
Teachers’ Pension Plan Board and
Borealis Infrastructure, will also sell
their interests in the pipeline system.
Express-Platte is a 1,700 mile oil
pipeline system connecting Canadian
and US producers to refineries in
the Rocky Mountain and Midwest
regions of the US. The 280,000 bpd
pipeline, which is made up of both
the Express and Platte crude oil
pipelines, begins in Hardisty, Alberta
and terminates in Wood River, Illinois.
The sale is expected to close
later this year subject to customary
consents and regulatory approvals.
Kinder Morganx’s chairman and
CEO Richard Kinder says the deal
is a ‘win-win transaction for both
KMP and Spectra Energy’, adding:
‘Spectra Energy is purchasing a good
pipeline system. In exchange KMP
will receive a very attractive price.
‘Based on the structure of KMP’s
investment with our Express-Platte
partners, KMP receives approximately $15
million of cash flow on an annual basis
from this investment, which is primarily
debenture interest. We will redeploy the
proceeds from this sale into various growth
projects to further benefit our unit holders.’
Greg Ebel, president and CEO of
Spectra Energy, comments: ‘This system is
strategically located to supply crude oil to
the US refining markets. It also represents
an incremental growth platform for us
that enables further investment in related
crude and refined product assets.’
Enbridge Income Fund acquires crude oil storage assetsPublicly traded corporation Enbridge
Income Fund Holdings and Enbridge
Income Fund have bought crude
oil storage and renewable energy
assets after closing the acquisition of
entities which own these assets from
Enbridge and some of its indirect
wholly owned subsidiaries.
The acquisition, closed by indirect
wholly owned subsidiaries of the Fund,
cost $1.164 billion (€895 million).
‘We are pleased to add these assets
to the Fund’s low-risk energy infrastructure
portfolio,’ says John Whelen, president
of Enbridge Income Fund Holdings.
‘They are all underpinned by long-term
fixed price contracts which generate
steady cash flow and will serve to further
diversify the Fund’s overall business mix.
‘Going forward, we expect that
crude oil transportation and storage will
generate roughly 40% of distributable
cash flow, while green power and gas
transmission will contribute approximately
40% and 20% respectively,’ he continues,
adding the ‘acquisition will substantially
scale up our crude oil transportation and
storage business in Western Canada’.
Ineos signs LOI to build new ethane storage tank Chemical company Ineos and
project contractor TGE Gas
Engineering have signed a
letter of intent to build a new
ethane storage tank at Ineos’
Rafnes terminal in Norway.
The deal also includes
expanding existing infrastructure at
Rafnes, due for completion in 2015.
The additional tank and
new infrastructure follow Ineos’
recent completion of supply and
infrastructure agreements that
allow it to access ethane feedstock
from the US which it will use in
its European cracker facilities.
Ineos says the additional
ethane will supplement existing
supplies and create options to
replace liquid petroleum gas
(LPG) which is more expensive.
The companies are due to
break ground on the project in
February or March (subject to
signature of the final contractual
agreements), with construction
slated to last two years. The
tank will be able to store initial
loads of ethane from Q2 2015.
Under a 15-year agreement,
Range Resources Appalachia will
lift the ethane from the Marcus
Hook Industrial Complex in
Philadelphia from 2015 onwards.
‘This is good news for Rafnes
and for the petrochemical industry
in Grenland. The investment is a
real vote of confidence in the
Rafnes site by Ineos that helps
secure our long-term future and
profitability of the site,’ Magnar
Bakke, site manager at Ineos
Olefins and Polymers Norway, says.
He adds: ‘The building of the
tank will provide construction jobs
over the next two years, but it
helps to secure jobs here for much
longer. The investment in a new
storage tank and infrastructure
gives the site important long-
term options, in addition to our
current supply arrangements,
to access raw materials from
around the world.’
Express-Platte will connect producers to refineries in the Rocky Mountain region
TANK STORAGE •January/February2013 9
terminal news
10 January/February2013•TANK STORAGE
Jathavedan NampoothiriSenior Vice President (Terminalling)IOT Infrastructure & Energy Services Limited
We Can, We CareAs part of the Business Development team at IOT Infrastruc-
ture & Energy Services Ltd. (IOT), Jathavedan Nampoothiri
actively pursues opportunities to develop new terminals on
the Indian subcontinent every day. IOT has been and will
remain important for the Petroleum and Petrochemicals
sectors in India and abroad, by providing both independent
terminalling services and customised flexible business models
for design and engineering, construction and the operation
of terminals. Jathavedan Nampoothiri is always enthusiastic
about his work because he cares about making a difference.
Your reliable storage partner for liquid bulk.
Admiralitaetstrasse 55 | D-20459 Hamburg Germany Tel. +49-40-370990 0 | Fax +49-40-37099 499 | www.oiltanking.com
terminal news
TANK STORAGE •January/February2013 11
Green Plains subsidiary opens new terminal
Ethanol producer Green Plains
Renewable Energy’s wholly
owned subsidiary BlendStar has
commenced operations at its
newly built 96-car train terminal
in Birmingham, Alabama.
The new terminal is served
by the BNSF Railway and has an
annual throughput capacity of
300 million gallons of ethanol.
‘The Birmingham terminal will
provide more efficient distribution
of ethanol to underserved markets
in the south eastern US,’ says Todd
Becker, president and CEO of
Green Plains. ‘We have unloaded
the first unit train of ethanol and
expect the terminal to be at full
capacity in January 2013.’
The Birmingham terminal
currently has storage for 160,000
barrels and a four-lane covered
truck rack but both of these have
the potential to be expanded.
Vopak EMEA enters negotiations for Vassilikos storage terminal The government of Cyprus
is establishing a petroleum
storage and delivery terminal
in the island’s southern
location of Vassilikos and
has selected Vopak Oil
EMEA (Europe, Middle
East and Africa) Division
as a strategic partner and
investor for the project.
Vopak Oil EMEA has
already been awarded
the tender for the terminal,
which has been under
development since 2004. A
basic plan for the project
was completed in 2006.
Talks between the
two parties started on 12
December. When negotiations
have finished, the issue
will be taken back to the
Council of Minister for a final
decision. It is not known how
long it will be until a final
decision is made, however
government spokesman
Stefanos Stefanou reportedly
said it was important for
the ‘issue to proceed as
quickly as possible’.
‘After evaluating the
results of the tenders’ requests
[Vopak] was selected as a
strategic partner for the fuel
terminal and storage facility
in Vassilikos. We are now in the
final stretch of the creation
of a petroleum delivery and
storage terminal,’ Stefanou
was quoted as adding.
The project is believed to
be of great economic benefit
to Cyprus when it becomes
operational. In addition, it
will resolve the problem of
limited storage capacity
for petroleum products.
Private company VTT is
also building a fuel terminal
at Vassilikos, expected to
be completed in 2014.
BlendStar’s train terminal is located in Birmingham, Alabama
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Plains All American withdraws from $500m tanker terminal Houston, US-based Plains All American Pipeline
(PAAP) has pulled out of building an oil tanker
terminal at the Port of Los Angeles.
Following project approval in 2008, the
company was to construct a $500 million
(€387 million) berth for oil tanker terminals and
a new pipeline which would transport the
incoming oil to nearby storage terminals.
However, PAAP has withdrawn its plans, saying
a number of reasons affected development at
the port, including on-going delays, the economic
financial crisis and a significant shift towards domestic
oil production. The port was notified about the
company’s change of plan in November last year.
Fifty per cent of the $3 million environmental
impact report was paid by Plains All American and
the other half came from the Port of Los Angeles,
which will not be repaid for this. The port says it hopes
to fill the now redundant site as soon as possible.
The project was a concern within the
local community as it was feared a new
tanker terminal would create increased
levels of pollution in the area.
12 January/February2013•TANK STORAGE
terminal news
Plains All American Pipeline closes acquisition of crude rail terminals Plains All American Pipeline has closed the previously announced
$500 million (€382 million) acquisition of loading and unloading
assets and various contractual arrangements from US
Development Group.
The assets include four operational crude oil rail terminals:
three crude oil rail loading terminals located in Eagle Ford, Bakken
and Niobrara; and a 140,000 bpd rail unloading terminal at St
James, Louisiana.
Inergy Midstream completes COLT Hub acquisition Inergy Midstream, a Kansas, Missouri-headquartered energy
storage and transportation company, has completed the
acquisition of Rangeland Energy for $425 million (€326 million).
Rangeland owns and operates the COLT Hub – a system
made up of a crude oil rail terminal, storage capacity and
related infrastructure. The hub serves oil refiners, marketers and
producers, and has contracted aggregate volume commitments
of approximately 150,000 barrels of crude per day.
By acquiring the COLT Hub, Inergy Midstream has expanded its
shale-focused infrastructure portfolio.
Inergy Midstream has also finalised the long-term debt and
equity financing related to the COLT acquisition.
Klaipèdos Nafta signs construction agreement for terminal upgrade Lithuanian oil terminal Klaipèdos Nafta is reconstructing its Dark
Fuel Facilities Park.
Having signed an LTL21 million (€6 million) agreement
with construction company UAB Rudesta, this is one of the
largest investments by Klaipèdos Nafta for the renovation of its
infrastructure scheduled for this year.
The reconstruction involves pulling down four 5,000m3 storage
tanks and building two new ones, each with a 32,250m3 capacity.
When the project is completed within 12 months, Klaipèdos
Nafta will be able to handle both light and dark oil products.
Iran continues to ramp up oil storage capacity Iran now has the world’s largest floating oil terminal, in the Persian
Gulf near Bahregan field, Bushehr province.
The terminal alone can handle exports of 2.2 million barrels of
oil, and Iran is also building new crude oil storage facilities in the
Persian Gulf to increase its onshore storage capacity by 8.1 million
barrels, planned for March.
The country is also said to be constructing a new oil storage
terminal close to the Strait of Hormuz and, in May, Pirouz Moussavi
of Iranian Oil Terminals Company announced that Iran is planning
the development of a new export terminal at Bandar Jask on
Iran’s Sea of Oman coast, which would be connected to Neka
port via a 1 million barrel a day pipeline.
The terminal, expected to cost around $2.2 billion (€1.7 billion) to
build, will have a storage capacity of 20 million barrels.
news in brief...
Canexus NATO expansion approvedCalgary-based chemical manufacturing and
handling company Canexus will go ahead with
the $125 million (€95.5 million) expansion of its
Bruderheim, Alberta-based North American Terminal
Operations (NATO) following approval from its board
of directors. The expansion involves developing
pipeline-connected unit train operations.
The company has also reached an agreement
with Canadian oil sands company Meg Energy
to connect the Bruderheim terminal to pipelines
which interconnect with Meg’s Stonefell Terminal.
Canexus will provide Meg with terminalling
services, under the agreement, for the loading
of bitumen blends for transport by rail and
the receiving of diluent shipments by rail.
In addition to connecting the terminal to Meg’s
pipelines, this next phase of the NATO expansion
could see Canexus connect the Bruderheim terminal
to a second pipeline-connected facility close by.
It also plans to build out the rail infrastructure,
loading/offloading and aboveground tank
storage required to allow for a unit train
movement of up to 118 tank cars (approximately
70,000 barrels) in single trains daily.
The expanded capabilities are slated to be
operational in the second half of this year.
‘We are pleased to announce full project
approval of the expansion of our Bruderheim
terminal capabilities that will include pipeline-
connected unit train operations for large scale
movements of bitumen blends and diluent by
rail,’ says Gary Kubera, president and CEO.
‘An agreement has been reached with Meg
Energy to connect Bruderheim with the Stonefell
Terminal. Significant progress on a potential second
pipeline/terminal connection to Bruderheim has also
been made and negotiations are proceeding with
additional customers for unit train shipments from
Bruderheim under multi-year, take-or-pay terms.’
Canexus will connect NATO to Meg Energy’s Stonefell Terminal via pipelines
terminal news
TANK STORAGE •January/February2013 13
Pan European Terminals refinances loan note
Pan European Terminals has
completed a re-financing
of its $11 million (€8.5 million)
secured fixed-rate loan (the
2011 note) which was raised
to fund the acquisition of Dan
Balt Tank Lager Terminal in
Denmark last November.
The US dollar-denominated
2011 note will be repaid
from the proceeds of an
£8.5 million (€10.5 million)
secured convertible fixed-rate
loan note which has been
issued by Dan Balt Terminals,
a 100% subsidiary of the
Pan European Terminals.
The loan note matures on
19 November 2015, carries
interest at 10% a year and has
been admitted to the Official
List of the Channel Islands
Stock Exchange (CISX). At the
same time the 2011 note has
been delisted from the CISX.
The 2011 note carried
interest of 15% with an early
redemption premium if
paid out before May next
year. However the early
redemption fee has been
waived on the 2011 note and
no payment has been made.
The loan note may also
be converted into ordinary
shares of 1 pence each in
the capital of the company
(ordinary shares) at a price
of 22p per ordinary share
(conversion), a premium of
25.7% to the closing price
of 17.5p on 19 November
2012 and 30.6% to the three-
month average closing price
prior to the same date.
Conversion would result in
the issue of 38,636,363 ordinary
shares representing 27.7% of
the Pan European Terminals’
current issued share capital
as enlarged by conversion.
Conversion is subject to
the company’s shareholders
approving the relevant
authorities to issue the new
ordinary shares arising upon
conversion and Pan European
Terminals is liable to a penalty
payment of £550,000 if such
authorities are not approved
by 19 November 2013.
It can redeem the loan
note at any time after 19
November 2013 on 60 days’
notice without penalty.
The balance of funds, after
repayment of the 2011 note,
will be used for transaction
costs and general working
capital purposes.
Current trading remains
in line with the board of the
company’s expectations
and progress is being made
to utilise all the capacity of
the company’s terminals in
2013. In addition, the board is
continuing to review strategic
options for its Russian assets.
Pan European Terminals
intends to issue a fuller trading
update in due course.
Simon Escott, CEO says:
‘I am pleased to have
strengthened the company’s
cash position and to have
refinanced the loan well
before its maturity date
at a much reduced cost.
This is especially pleasing
in an extremely difficult
financial market.’
Sonatrach plans to meet Algeria’s refined demandsAlgeria’s storage capacity for petroleum
products is to grow following an announcement
from Sonatrach, the company’s state-owned
oil and gas company, that it plans to invest
DZD198 billion (€1.9 billion) in the sector.
Sonatrach’s CEO Abdelhamid Zerguine said the
investment will help meet the increasing demand
for refined petroleum products such as fuels.
He added that the planned capital
would raise the country’s refined products
storage capacity from seven to 30 days.
Zerguine described the investment plan as a
‘redeployment of our storage strategy that will
strengthen and modernise the business to meet
the growing demand for refined products’.
The state-owned oil company is investing in storage
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terminal news
Hydrocarbon storage facility gathers pace in Far EastSingapore-based industrial infrastructure
company JTC has launched the second
of its two-stage request for proposal
to engage an operator to manage,
operate and maintain the first phase
of the Jurong Rock Caverns (JRC).
The JRC will be Singapore’s first
underground hydrocarbon storage
facility located at Jurong Island. The first
phase will comprise of five caverns to be
completed between 2013 and 2014.
Four operators have been shortlisted
under the terms of the first stage of the
proposal request and they have been
invited to submit second stage proposals
for evaluation by JTC. The second stage
will also include a pre-qualification stage
for new interested participants however.
‘JRC will cater to the growing need
for additional storage capacity for liquid
hydrocarbons at Jurong Island. The
project will help to optimise our land
resource and ensure the competitiveness
and sustainability of Singapore’s chemical
industry in the long run,’ says JTC assistant
CEO David Tan. ‘We’re confident that
through this rigorous two-stage RFP we will
be able to bring on board a suitable and
qualified operator for JRC by next year.’
JTC is developing an underground hydrocarbon storage facility on Jurong Island
terminal news
TANK STORAGE •January/February2013 15
Odfjell to expand JV with Lindsay Goldberg Odfjell has signed a letter of intent to
expand its existing joint venture with private
equity company Lindsay Goldberg.
Under the transaction, Lindsay Goldberg will
acquire a 49% stake in Odfjell Terminals (OT),
the holding company for Odfjell’s tank terminals
business. All remaining tank terminal activities
outside of the OT holding company will also
be included in the transaction apart from two
minority investments. It is further intended for the
assets in the existing JV is be fully owned by OT.
In exchange for its 49% share, Lindsay
Goldberg will contribute its 49% of the existing
JV as well as $226 million (€170 million) to OT.
Odfjell is currently developing a new tank
terminal facility in Charleston, South Carolina and
is expanding its existing facility in Houston, Texas. It
was also selected to evaluate the development
of a new bulk liquids terminal facility in La Havre,
France and is exploring opportunities in China,
India, Middle East, Africa and South America.
Odfjell president and CEO Jan Hammer says:
‘The proposed transaction follows the success of
our existing joint venture with Lindsay Goldberg,
who has proven itself as a long-term orientated
partner with a strong dedication to developing
and creating value for our business. Our greenfield
projects in China are significant and we are
confident that together with Lindsay Goldberg we
can accelerate the development of these projects.’
The proposed transaction is subject to
confirmatory due diligence, negotiation
and execution of definitive documentation
and customary closing conditions.
Odfjell and Lindsay Goldberg signed an LoI
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terminal news
14 January/February2013•TANK STORAGE
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NuStar and ConocoPhillips sign long-term agreement Independent liquids terminal
and pipeline operator NuStar
Energy has formed a long-
term pipeline and terminal
services agreement with
ConocoPhillips to expand
its crude oil pipeline system
in southern Texas, US.
The expansion, expected
to cost $100-120 million
(€76-92 million), includes
building a new pipeline and
a 100,000 barrel terminal
near Pawnee, Texas. The
pipeline will originate from
the Pawnee terminal and
connect to NuStar’s existing
12” pipeline system between
Pettus and Three Rivers.
This existing pipeline
will then be linked to
the company’s recently
completed terminal in Oakville
for crude delivery to the
NuStar North Beach Terminal.
From here the crude will be
transported to the city of
Corpus Christi via existing and
new pipeline connections
that will be established at
refineries within the area.
NuStar will also provide
truck receiving facilities at
the new Pawnee terminal
and its facility in Oakville. In
addition, NuStar has broken
ground on a new ship dock in
Corpus Christi that will support
the North Beach Terminal
under a long-term lease with
the Port of Corpus Christi.
The pipeline expansion
project will be completed by
the end of 2013 and the new
dock facilities are expected
to come online early in 2014.
The agreement will allow
NuStar to serve ConocoPhillips’
growing production in the
Eagle Ford Shale play. The
new pipeline and terminal
facilities will provide Eagle Ford
producers with a cost-effective
transportation alternative for
their growing production.
‘We are excited to
announce another major,
accretive expansion in the
Eagle Ford region so soon
after the acquisition of
TexStar’s crude pipeline assets
in the Eagle Ford region as
it further expands the area
our pipeline system can
serve,’ says Curt Anastasio,
president and CEO of NuStar.
‘We are fortunate to
have extensive pipeline and
terminal assets already in
operation throughout the
region with the capacity to
easily support an expansion
of this size and help support
the incredible production
growth taking place in the
Eagle Ford Shale play.’
The investment is backed
by a 10-year throughput
commitment and, according
to Anastasio, the projects
are expected to generate
approximately $15 million in
incremental, annual EBITDA
once fully implemented.
The agreement will see NuStar serve ConocoPhillips’ production in the Eagle Ford Shale play
Gulf Petrochem builds new Indian oil terminalOil company Gulf Petrochem
Group has broken ground
on its 90,500m2 Pipavav Oil
Terminal in Gujarat, India.
The new state-of-the-
art terminal will be able to
handle and store bulk liquid
cargoes, and its proximity to
major transportation networks
means it will have easy
access to India’s northwest
and central markets.
‘Gulf Petrochem’s Pipavav
Oil Terminal is strategically
located in southern Gujarat,
giving us a logistical
advantage and strongly
positioning the company to
take advantage of India’s
abundant northwest markets,’
Sanjeev Sisaudia, Gulf
Petrochem’s group CEO, says.
‘This project will
accelerate our expansion
drive in key Asian markets.
We will continue to invest
in major projects that will
enhance our ability to
provide reliable, tailor-made
solutions at competitive
prices, which will ultimately
benefit our clients.’
Port of Sohar develops new liquid jetty The Port of Sohar in Muscat,
Oman is to build a new
liquid jetty to accommodate
increased liquid imports.
The jetty is designed
to handle tankers of up
to 120 dwt. It is predicted
that the majority of this
increased bulk liquid volume
will come from Oiltanking-
Odjfell Terminals’ central
tank terminal, which has
expanded significantly
since its opening in 2008.
The joint venture’s
storage terminal can
handle just under 1.3
million m3. It was launched
with 842,000m3 of storage
capacity and expanded
by an additional 425,000m3.
The new terminal grew by a
further 27,300m3 in July 2012.
The project is currently
in the design phase and
this is expected to be
finalised in the second half
of 2013, when tendering
for the construction will
start. The new jetty will be
brought into operation
in early 2015.
terminal news
TANK STORAGE •January/February2013 17
versatile.Always a leading innovator, ROSEN not only supplies pipeline customers
with the latest diagnostic and system integrity technologies but also offersflexible solutions and all-round support for plants & terminals.
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terminal news
Magellan and Occidental Petroleum proceed with BridgeTex Pipeline Magellan Midstream Partners
and Occidental Petroleum are
continuing with the development
of the previously announced
BridgeTex Pipeline in the US.
With access to refineries at the
Houston Ship Channel, Texas City and
others across the Gulf Coast via third
party pipelines, the BridgeTex Pipeline
will move up to 300,000 bpd of Permian
Basin crude oil from Colorado City,
Texas to the Houston Gulf Coast area.
The project includes the
construction of 1.2 million barrels of
crude oil storage at Colorado City
and 1.4 million barrels at east Houston.
Around 400 miles of 20” pipeline
will be built, going from Colorado
City to Magallen’s terminal in east
Houston, in addition to a further
50 miles of 24” pipeline between
east Houston and Texas City.
The BridgeTex pipeline is expected
to come online by mid-2014.
The pipeline project is supported by
long-term transportable commitments
and has received a favourable
order from the Federal Agency
Regulatory Commission approving
the tariff structure for the pipeline.
The BridgeTex Pipeline will transport crude oil from Texas to the Houston Gulf Coast area
REG expands terminal locationsRenewable Energy Group (REG), a producer and marketer of biodiesel, has established new biodiesel blending locations at four New York terminal sites.
‘Gaining access to the largest biodiesel terminal network in New York is part of our strategy to expand into the Northeast market as a reliable biodiesel supplier,’ REG president and CEO Daniel Oh says.
These biodiesel distribution points are in New Jersey’s Whippany, and New Hyde Park, Port Chester and Brookhaven in New York and will offer quick access for blending biodiesel to enhance heating oil and diesel supplies.
‘REG has biodiesel onsite in New Hyde Park to allow area distributors and heating oil retailers to increase supply as the New York City biodiesel blend B2 requirement goes back into effect,’ Gary Haer, VP of sales and marketing for REG, adds.
This B2 requirement was scheduled to come into effect on 1 October, however was delayed until 1 December as a result of tight fuel supply issues following Hurricane Sandy.
REGmarketsitsREG-9000biodiesel and currently producers over225milliongallonsayear.In addition to its new terminal locations in New York and New Jersey, the company also operates from terminal locations in California, Iowa, Illinois, Minnesota, New Mexico, Texas and Ohio.
18 January/February2013•TANK STORAGE
Ceylon and Lanka Indian Oil form pipeline partnership Sri Lankan state owned petroleum
distributor Ceylon Petroleum Storage
Terminals and private oil company Lanka
Indian Oil, will together develop a new
pipeline after forming a joint venture.
The pipeline, 14.5km long and 18”
in diameter, will transport oil from the
Colombo Harbor to the Kolonnawa
storage terminal faster than the
existing transportation infrastructure,
in turn saving an estimated $8
million (€6.2 million) a year.
Tanker unloading is expected to take
two days when the new pipeline comes
into operation, replacing the current
system whereby a ship takes around four
to five days to unload fuel due to the
thinner diameter of the pump. The existing
pipelines are also said to leak frequently.
Ceylon has called for international
bids for the pipeline and is already in the
process of awarding a bidder with a $45
million contract on a PAT basis. Lanka
Indian Oil owns a 33% stake in the project.
Construction on the new pipeline
will begin later this year. The project is
expected to take around 12 months.
terminal news
Saudi Aramco moves forward with Jizan terminal and refinery Energy company Saudi Aramco is
continuing to develop its $6 billion (€4.7
billion) Jizan oil terminal and refinery
in Saudi Arabia, and has awarded
EPC contracts to eight companies.
The project is slated to come online
at the end of 2016, when it will be able
to handle 400,000 barrels of oil per day.
A marine terminal will allow the refinery
to receive and export crude oil.
Local company Ali Al-Ajmi Group will
clear and prepare the site ready for the
construction phase. Contracts have also
been signed with Hanwha Engineering
& Construction, JGC, Hyundai Saudi
Arabia, SK Engineering & Construction,
Petrofac Saudi Arabia, Hitachi Plant
Technologies and Tecnicas Reunidas.
More than 1,000 direct jobs and
around 4,000 indirect jobs will be created
by the terminal and refinery project.
Abdullatif HE Abdullatif A. Al-
Othman, governor and chairman of
the Saudi Arabian General Investment
Authority’s board of directors, says the
project is key to the development of the
Jizan Economic City (JEC) project.
‘Work is underway to develop the
required plans to accelerate the JEC’s
infrastructure construction works in
order to attract industrial and service
investments, provide appropriate job
opportunities for the area’s people and
form the nucleus of diversified economic
activities,’ he was reported to have said.
TANK STORAGE •January/February2013 19
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terminal news
Greenergy North Tees starts fuel supply Greenergy, the UK’s leading
supplier of petrol and diesel,
has commenced diesel, gasoil
and kerosene supply from
its terminal at Teesside, now
known as Greenergy North Tees.
The North Tees facility
was already closed when it
was acquired by Greenergy
in July 2012, having ceased
commercial operation earlier
in the year following the
administration of Petroplus
Refining Teesside. Since
taking over at the terminal
Greenergy has undertaken a
condition survey and made
certain improvements prior
to commencing supply.
The company now intends
to make further significant
investments at the site in order
to create an integrated supply
system for petrol and diesel in
the North East and a new hub
for its rail distribution network.
Andrew Owens,
Greenergy CEO, comments:
‘Our North Tees terminal will
complement our existing
petrol manufacturing facilities
on Teesside, by adding the
infrastructure for a new rail
head, our own jetty capable
of receiving large diesel ships
and product interchange
between terminal locations.’
There are more than 20
tanks at the site and the
company has not ruled out
construction of additional
tankage in the future.
Planned improvements
at North Tees over the
next 18 months include:
• Jetty modifications
including conversion to
allow a more commercial
based multi-product import
and export into the terminal
• A new pipeline to link
Greenergy North Tees
to other terminals in the
Teesside area. The plan is
for the pipeline to carry
petrol and diesel.
• Additional road
loading facilities for
petrol and diesel.
• Refurbishment to tankage
and road loading facilities;
• Enhancements to IT.
The project at North Tees
follows investments by
Greenergy in storage and
distribution facilities at
amongst others Thames Oilport
(2012, joint venture between
Vopak, Greenergy and
Shell), Cardiff (2010), Teesside
(2009), Plymouth (2008) and
West Thurrock (2008).
Greenergy continues
to supply petrol, diesel
and gasoil from Vopak
Terminal Teesside.
Diesel, gasoil and kerosene are now available from the Greenergy North Tees terminal
BP to invest £300m on Sullom Voe upgrade Oil company BP is investing
£300 million (€370 million)
to upgrade its Sullom
Voe terminal in Shetland,
Scotland which could see the
facility remain operational
for another 30 years.
The improvement
programme will take place
over five years and, with
200 contractors on board,
will include plant and
piping replacement, oil
tank refurbishment and jetty
maintenance. This project
will ensure the terminal is
able to produce oil from
west Shetland oil fields.
BP runs the Sullom Voe
terminal, which produced
9.2 million tonnes of oil last
year, transporting oil from
the East Shetland basin fields
via the Ninian and Brent
pipelines operated by BP and
TAQA Bratani, respectively.
‘Given the scale of the
work we are going to do on
the plant here, and then the
potential gas plant that’s
going to be built at the
terminal, we could be talking
about investment in excess
of £300 million,’ terminal
manager Arthur Spence
was quoted as saying.
Work at Pengerang oil terminal on scheduleStorage tank construction will now get underway at the
$620 million (€477 million) Pengerang oil terminal in Johor
after project developer Pengerang Terminals completed
dredging for Phase 1 of the project, according to Platts.
Malaysian terminal operator Dialog owns a
51% stake in Pengerang Terminals and storage
provider Vopak holds the remaining 49%. Dialog
will operate the terminal once it comes online.
Platts has reported that work on the storage
tank foundations has begun, the first phase
of which will comprise a total 1.3 million m3
of storage capacity and six berths.
Clean products storage up to 432,000m3 is on
schedule to come online at the beginning of 2014, with
a further 432,000m3 for clean products and 420,000m3
for crude oil slated to be operational by January 2015.
An additional 1 million m3 will be added at a
later date during the development of Phase 1.
20 January/February2013•TANK STORAGE
terminal news
TANK STORAGE •January/February2013 21
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22 January/February2013•TANK STORAGE
terminal news
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Petrom opens new storage terminal in Romania OMV Petrom, the largest oil company
in Romania, has opened a new fuel
storage terminal in Isalnita, Dolj. The
facility, designed to deliver petroleum
products to the south of Romania,
cost €26 million to build and has a
storage capacity of 11,000m3.
The project is part of an extensive
investment programme, which has seen
the construction of three new depots over
the last three years. OMV Petrom’s new
facility in Isalnita can store 11,000m3 of
petroleum products, its terminal in Jilava
can handle 27,000m3 and its recent build
in Trees has an 8,000m3 storage capacity.
Neil Anthony Morgan, of the Petrom
executive board, says the total project
cost was just under €90 million. ‘This is the
third fuel depot built from scratch over
the past three years. This modern network
will continue to provide Petrom customers
with products that fully comply with
European standards. For the construction
of the three warehouses in Jilava, Trees
and Isalnita, we invested €87 million.’
Petroleum products supplied to the
three facilities are stored in double-
walled steel aboveground tanks, fitted
with automatic volume and temperature
measurement gauges, in addition to
a fixed fire extinguishing system.
During the construction phase
of the Isalnita terminal, Petrom used
over 5,200m3 of concrete, more than
1,300 tonnes of structural steel and
over 90km of electric cables. OMV Petrom’s new storage terminal is in Isalnita, Romania
TANK STORAGE •January/February2013 23
terminal news
Fujairah Oil Terminal on track for 2014The Fujairah Oil Terminal (FOT),
currently under development
in the Port of Fujairah,
UAE, is on track to begin
commercial operations by
the end of 2014, Singapore-
based trading company
Concord Energy says.
Concord is developing
the terminal with a subsidiary
of China’s Sinopec and,
on 8 January, announced
the completion of the sale
of a 50% interest in FOT to
Sinomart KTS Development.
The oil storage facility will
have a total storage capacity
of 1,155,000m3. This will consist of
eight tanks totalling 569,000m3
for crude oil and fuel oil, four
tanks totalling 164,000m3 for
fuel oil only, six tanks totalling
152,000m3 for gasoil (diesel)
and 14 tanks with a total
storage capacity of 270,000m3
for petrol and naphtha.
‘We were awarded the
concession to develop the site
at the end of 2011 and, since
then, we have cleared the land
and prepared the site ready to
start construction immediately,’
John Stuart, CEO of Assets
Group Concord Energy, says.
Concord expects 100%
of this storage capacity to
be contracted prior to the
terminal’s start-up, and
reveals it has already had
strong interest from a number
of traders and oil majors.
‘We have also spent
the last nine months raising
a $252 million (€193 million)
project finance facility and
we successfully signed with a
consortium of six international
banks at the end of December
2012,’ Stuart says. ‘Given the
challenging debt markets, we
see the signing of this facility
as a major endorsement of
the quality of this project.’
MUC Oil & Gas is the
project management
consultant on the project
and Rotary Engineering has
been awarded the EPC
contract. Construction will
take 21 months and ground
is expected to break before
the end of January. Stuart
explains: ‘The municipality
of Fujairah has already
constructed all of the port
facilities that FOT will utilise,
and with foundations of
solid rock, it does not face
any soil stabilisation risks
inherent in many terminal
construction projects.’
Fujairah is the second
largest bunkering location in
the world, behind Singapore
and ahead of Rotterdam,
and is being developed as
the key logistics hub for the
UAE. However, Stuart believes
the location is not in danger
of overcapacity as its coastal
mountain range will cap the
number of storage terminals
developed in the region.
‘Fujairah has one of the
highest throughput capacity
ratios. Independent storage
capacity is forecast to grow
from approximately 3.5 million
m3 to 7 million m3. Demand
for bunkers alone in 2010 was
24 million tonnes. There is
also a limitation on the ability
to develop further land in
Fujairah due to the proximity
of the mountain range along
the coast,’ he he says.
Fujairah’s mountain range along the coast reduces the risk of overcapacity
Oiltanking Deutschland announces change in managementOiltanking Deutschland’s Walter Dornhof resigned from his
position of MD on 31 December 2012. His successors Ulfert
Cornelius and Sven Thiessen took over as joint MDs on 1 January.
Dornhof held his position of Oiltanking Deutschland MD
for 19 years, but has been with Oiltanking for over 36 years.
He will remain as an ambassador for the company.
Cornelius has been with the company since April
2000 and in 2011 was appointed MD of Oiltanking
Deutschland, when he took joint responsibility with Dornhof
for the entrepreneurial activities of the company.
Thiessen has held a number of leading positions
within the oil industry for over 20 years. He has
comprehensive knowledge in particular in the areas
of tank terminals, logistics/supply and HSSE.
Web based terminal automation systems Tank gauging and inventory management Stock control systems Bio-ethanol and Bio-diesel blending control Engineering design services Site maintenance
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24 January/February2013•TANK STORAGE
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TANK STORAGE •January/February2013 25
technical news
Greenergy works with tanker drivers on safety
Jet Edge awarded patent for UHP waterjet seal technology
UK-based petrol and diesel
supplier Greenergy is installing
new equipment at its supply
locations in order to improve
safety for drivers when they fill
their road tankers with fuel.
The initiative introduces
drip trays to prevent the
potential build-up of petrol
and diesel residue in the
loading bay area.
‘The drip trays are simple
but effective. By collecting
even the smallest leaks of fuel
from the loading arms, they
help keep the loading area
clean and reduce potential
slip hazards,’ explains tank
driver Dean Lawrence.
These drip trays have
already been installed at
West Thurrock, Plymouth,
North Tees, Eastham and
Clydebank, and are
on order for Grays and
Vopak Teesside.
Waterjet manufacturer Jet
Edge has been awarded a
patent for its high pressure
fluid sealing mechanism.
The patent was issued
by the United States Patent
and Trademark Office. The
waterjet seal innovation
improves seal life by
providing metal-on-metal
sealing without the use of
conventional plastic seals.
The technology uses two
convex curved surfaces in
single line contact with one
another to seal ultra-high
pressure (UHP) fluid at static
pressures up to 130,000 psi.
Jet Edge initially
developed the metal-on-
metal seal to meet the
increased performance
demands of its X-Stream
pressure intensifier pumps,
which produce dynamic
cutting pressures of 75,000
psi. It then expanded
the technology’s use into
additional product lines,
including tis Eco-Jet direct
drive pumps and several of its
60,000 psi intensifier pumps.
The newly installed drip trays increase safety
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26 January/February2013•TANK STORAGE
technical news
Krohne introduces new flowmeter
Tepsa wins Atlante 2012
Eriks acquires Valve Entreprise
Krohne, a developer, manufacturer
and distributor of measuring instruments
for the process industries, has
launched a new mass flowmeter for
the energy, chemical, oil and gas,
petrochemical and power industries.
The Optimass 6400 twin bent tube
Coriolis mass flowmeter is equipped
with a new signal converter that
features advanced device and
process diagnostics, and has been
approved for custody transfers
of both liquids and gases.
It also features advanced entrained
gas management (EGM), with no loss
of measurement with gas entrainment
up to 100% per cent of volume.
Available in stainless steel 316L,
Hastelloy C22 and Duplex steel, the new
flowmeter ranges in size from DN 08 to
250. It operates in high temperatures
(up to 400°C) as well as cryogenic
applications down to -200°C. It also
handles pressures up to 200bar.
Bulk liquid storage operator Tepsa (Terminales
Portuarias) has been awarded the Atlante 2012 for
best training initiatives, information and awareness
on the prevention of occupational hazards in the
category of SMEs (small and medium enterprises).
The prize was awarded by federation
sponsor Foment del Treball at its biannual gala
to the ‘Drivers Training’ project, a scheme
that teaches truck drivers about the risks
at terminals and how to operate in safety
conditions, applying preventative measures.
In a statement Tepsa said: ‘We constantly
monitor safety at our facilities and the people who
are working inside. This led us to be innovative
and implement ongoing enhances and new
initiatives that will ensure excellent operations.’
Tepsa is located in the main ports of
the Spanish port system: Barcelona, Bilbao,
Tarragona and Valencia. Its total storage
capacity is around 890,000m3.
Bilbao, Spain-based Valves
Entreprise, a manufacturer
of dual expanding
plug valves, has been
acquired by technology
company Eriks.
The brand is known
among industrial
companies in the field
of tank storage, refinery,
bulk loading, naval and
aviation refuelling systems
and metering systems,
and provides a safe and
reliable environment for
liquid storage and transfer.
The acquisition will see
Valves Entreprise renamed
‘Eriks Valves Entreprise’. Valves Enterprise has been renamed Eriks Valves Enterprise following the acquisition
Engineering specialist Engenda
Group, which provides
mechanical, electrical and
instrumentation engineering
services, is launching a new
company that will deliver
confined space and height
rescue services and training.
The new business, Column
Rescue, will operate under the
Engenda brand from a new
£50,000 (€61,000) purpose built
training centre in Staffordshire,
UK. It will provide training and
rescue support for plant workers
operating in the oil and gas,
power, chemical, manufacturing
and infrastructure sectors.
It will complement the work
done by fellow group company
and column turnaround
specialists DTEC Site Services
but will be delivered as a
standalone service, and has
already been contracted to a
number of UK-based blue chip
companies in the upstream and
downstream refining sectors.
‘The HSE is strictly monitoring
companies’ compliance with
the Confined Space Regulations.
They are reinforcing that all
confined space entries must
have a deliverable rescue plan
and rescue cover in place,’
explains Steve Colclough,
operations director for both
Column Rescue and DTEC.
Engenda’s new business provides confined space rescue training
TANK STORAGE •January/February2013 27
technical news
Capital Safety upgrades vertical climbing system Fall protection equipment supplier Capital Safety
has implemented a series of new additions to its
vertical climbing system, designed to save the
installer time and to maximise safety for the end user.
The Protecta Cabloc system, suitable for the oil
industry among others, provides assurance of safe
access on vertical structures such as fixed ladders
and poles. It allows the user to ascend or descend
unrestricted while connected to a fall system.
Enhanced features of the system include:
- Top and bottom anchors designed
specifically for use with ladders
- A new tension indicator incorporated into
the bottom anchor gives a visual indication
that the cable is correctly tensioned
- The Cabloc Pro Traveller allows users to bypass
intermediate cable guides without removing
hands from the ladder, providing continuous
movement on the system. In addition, the anti-
inversion feature prevents the traveller from
being incorrectly mounted on to the cable.
The Protecta Cabloc conforms with, and
is tested in line with, EN353 part 1:2002 and
CNB/P/11.073. It is also CE marked, meeting
the latest standards and legislation.
Dantec signs contract with Danish distributor
UK-based Dantec, a
manufacturer of composite
hoses for the transfer of petrol,
oil products, chemicals and
liquefied gases, has signed a
deal with a Danish distributor
in a bid to ramp up exports.
The new deal is with
Fontenay and brings its
total number of distributors
to 49, 41 of which are
overseas. Dantec says its
distributor network is key
to its exports drive, which
sees 70% of its £5.6 million
(€6.9 million) turnover
coming from abroad.
The contract will focus
on selling Dantec’s Danoil
hoses to the Danish market.
These hoses are used to
transfer petrol and oil-based
products between fuel trucks
and storage tanks in filling
stations or storage terminals.
In similar news, Dantec
has seen its sales in the
marine sector triple over
the last 12 months.
The company’s MD John
Laidlaw attributes this rise
in marine sales to the ‘ship
to ship’ and ‘ship to shore’
markets, in which Dantec’s
hoses are used to transfer oil,
chemicals and LPG between
ships or between ships and
terminals. It has also secured
contracts with chemical
tanker operator Odfjell
and UK-based Safe STS.
Laidlaw said the
company ‘is determined
to win more of the ship to
shore market’ from terminal
operators. ‘We presently
have a small percentage
of this market globally but
see massive potential for
growth,’ he comments.
Dantec will target the Danish market after partnering with Fontenay
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terminal news
28 January/February2013•TANK STORAGE
Saska chooses EAP web-based terminal automation platform
European Automation Projects
(EAP), a supplier of automation
products and services, has recently
completed the next stage in the roll
out of a large terminal automation
system for Bulgarian company Saksa
OOD Novi Iskar Terminal Bulgaria.
The terminal is said to have tripled
in size since the original system was
installed around 18 months ago. Saksa
began working with EAP when its
growing business meant its requirements
changed; EAP made phased alterations
to the Terminal Automation package
to reflect these new requirements.
The i-Supervisor terminal
automation system (TAS) includes
the following functions:
- Tanker loading across multiple
multi-arm loading gantries
and weighbridges
- Tanker unloading through import
meters and weighbridges
- Rack injection of multiple
performance-enhancing additives
- Tank gauging across 30 storage tanks
- High level and low level shut-
off system for tank gauging
- Rack blending of biodiesel and
bioethanol at selectable ratios
- Site access control
- Export of data to Bulgarian
Customs system
- Export of daily withdrawal
data to third party clients.
The system is fully dual redundant and
runs across multiple local clustered servers
with a web interface for individual users.
The latest upgrades to the system include
the addition of bioethanol storage and a
bioethanol rack blending module, i-Blend.
EAP will next be installing a
customised module to handle the
storage and loading of exothermic
additive products which are to be stored
at the site by a major client in the near
future, with further expansion of the site
and the system planned for this year.
The terminal is open 24
hours and loads between 100-
200 road tankers per day.
Saska has installed automation solutions at its terminal in Bulgaria
Edgen Murray acquires HSP Group Edgen Group, through its subsidiary
Edgen Murray Europe, a distributor of
specialty steel products for the energy and
infrastructure markets, has acquired UK-
based HSP Group to enhance its portfolio
of valve and actuation products.
HSP sells valves and actuation products
and services to the global petrochemical,
refining, offshore oil and gas and power
markets in the UK, US and Qatar, and
distributes ball gate, globe and check valves
for manufacturers around the world.
‘The integration of HSP will allow us to
better meet the needs of our shared and
new customers in the energy sector across
European, Middle East and Caspian regions,’
says Craig Kiefer, Edgen Murray’s president.
The acquisition came into effect on 10
December 2012. HSP’s projected revenue
for 2012 is approximately £23 million (€28
million). Financial details of the cash and
stock acquisition were not disclosed.
Vopak installs the world’s largest Bornemann twin screw pump Independent tank storage provider Vopak has chosen to installflexiblepumptechnologyat its storage terminal currently under construction in the Port of Algeciras, Spain.
The terminal will have a total storage capacity of 403,000m3 comprising 22 tanks for handling a range of white and black petroleum products. Instead of choosingdedicatedfixedpumpinstallation such as centrifugal, vane or gear type, Vopak and Ecolaire Engineers opted for Bornemann Twin Screw pumps in ordertodeliverhighflowratesatdifferent operating conditions.
The number of pumps required for the complete
terminal was reduced to just seven units which can handle low and high vicious products and carrying duty points. Two HC 500(<2,500m3/hr),threeHC370(<1,500m3/hr) and two HC 300 (<800m3/hr) will be installed. The HC500pumpisthelargestcastedtwin screw pump available on the market, Bornemann claims.
Vopakwillbenefitfromtwinscrew technology advantages such as self-priming, constantly highflowrates,highsuctionlift, smooth and low pulsations, andmaximumflexibility.
A need for fewer pumps and related equipment has resulted in reduced investment costs for Vopak.
terminal news
TANK STORAGE •January/February2013 27
Saska has installed automation solutions at its terminal in Bulgaria
in partnership with
IP Week Lunch
Tuesday 19 February 2013,
Park Plaza Victoria, London
Ayman Asfari FEI,
Group Chief Executive, Petrofac
IP Week Dinner
Wednesday 20 February 2013,
Grosvenor House, London
For more information on attending,
speaking, sponsoring or exhibiting at
IP Week, please contact:
Sheetal Ruparelia
t: +44 (0)20 7467 7116
Unique to IP Week is its breadth of content, ranging from upstream, midstream and downstream, to finance and investment, technology and gas. It also features outlooks on specific regions such as Africa, the Middle East, Asia and Russia.
In-depth, strategic conferences will focus on:• Globalenergysecurity• Strategicroleofinnovativetechnologysolutions• Financingoilandgasinthefutureandmanaginginternationalrisk• Deliveringgas• OilandgasdevelopmentinRussia,CIS&Arctic• EnergysecurityinAsia• InvestinginoilandgasinAfricaandtheMiddleEast• Theglobaloutlookofthedownstreamindustry IP Week speakers include:• LordBrowneofMadingleyCEngHonFEI,ManagingDirector, Riverstone Holdings • SamirBrikho,CEO,AMEC• ChrisBeddoes,ActingSecretaryGeneral,EUROPIA• ElizabethSpomer,SeniorVicePresident–GlobalBusinessDevelopment, BGGroup• AngusMcCoss,ExplorationDirector,TullowOil• HarryBrekelmans,ExecutiveVicePresidentofRussiaandCaspian, Shell Exploration and Production Services
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30 January/February2013•TANK STORAGE
n5/01/13 Indian Oil Corp. (IOC) Three people died after an oil storage tank owned by IOC caught fire. Surat, Gujarat, India The tank is located at the company’s terminal at Hazira in Surat and it took fire fighters around
21 hours to contain the fire. The Hazira terminal comprises nine storage tanks. Tank 4, where the fire broke out, was filled
with almost 5,000kl of petrol which burnt out. The fire fighters worked to contain the blaze by spraying the surrounding storage infrastructure with water and foam.
There will be an investigation into the cause of the fire and union petroleum minister Veerappa Moily says a report should be available by the end of January.
He also announced Rs.5 lakh in compensation for the families of those who have been killed.
n25/12/12 Chevron Lightning has been blamed by fire officials as the cause of a blaze at Chevron’s gas well Louisiana, US site in south Louisiana. The Duson Volunteer Fire Department visited the site after smoke was reported coming from
storage tanks. Foam was used by the Lafayette Fire Department’s Hazardous Materials Response Team to put
out the fire in the 3,780-gallon tank battery, which authorities say held oil and another product. Nobody was injured.
n 14/12/12 Boston Marine Transport A large amount of fuel oil leaked into Newark Bay around 11.30pm during a transfer Newark Bay, New Jersey, US operation. Containment boom and several skimmers were put in place around the site but failed to
contain all of the fuel. A sheen of oil was visible on the surface of the water in the bay. 112,000 gallons of fuel oil was in the tank at the time of the incident but the total volume of
escaped fuel has not yet been determined.
n 30/11/12 Mantua Creek, Hazardous material leaked into Mantua Creek after a freight train derailed. New Jersey, US The incident happened at the Marine Terminal in Paulsboro, where four tank cars fell into the
river. The US Coast Guard was notified of the incident as it was feared chemicals could leak into the Delaware River.
A reported 18 people suffered from breathing problems and a number of local residents had to be evacuated. No one was injured.
The cause of the derailment is not yet known.
n29/11/12 Trans Mountain Pipeline Trans Mountain Pipeline operators took over three hours to respond to a gasket failure which Abbotsford, British Columbia, led to a crude oil spill in January last year. Canada A report from the National Energy Board reveals warning alarms sounded at the company’s Sumas tank farm for three and a half hours before staff responded. When they arrived at the scene, six hours after the first alarm was recorded, a crude oil spill was
discovered. It had not flowed beyond the containment area, however noxious emissions had escaped into the atmosphere.
The report highlights failures by Trans Mountain’s monitoring staff located at the Edmonton-based control centre. According to the report: 1) staff at the control centre did not set an alarm within the allotted 15 minute timeframe following an oil transfer; and 2) they then did not respond to leak warning alarms that went off hourly until the end of the operator’s shift.
Since these findings have been published, Trans Mountain Pipeline is said to have identified corrective actions to address the report’s findings.
According to the report, the night shift control centre operations did not correctly identify why the volume in the tank was dropping and attributed the alarms to the weather. In fact, the spill was a result of a gasket failure on the roof of a tank caused by pressure from frozen water in the roof drain system.
n15/11/12 BP BP has reached a settlement with the US Department of Justice (DoJ) following its part in the Deepwater Horizon, Deepwater Horizon event in 2010. Gulf of Mexico The settlement reached a total of $4.5 billion (€3.5 billion) to resolve all federal criminal charges
and claims by the Securities and Exchange Commission. The agreement is also cash positive because it clarifies the level of criminal fines imposed on BP.
The Deepwater Horizon event occurred after an explosion accidentally caused a BP oil spill to hit the Gulf of Mexico in 2010. It flowed for three months and released almost 5 million barrels of crude oil, making it the largest marine oil spill in petroleum history.
While BP has accepted criminal responsibility for the accident, it has done so on the ground of ‘negligence’ as opposed to ‘gross negligence’ as it eliminates the threat of a possible indictment by the DoJ and reduces the chances of BP being barred from future US government contracts.
The settlement with the DoJ will increase case-related provisions by approximately $3.85 billion and take the total pre-tax charge to just under $42 billion. BP has committed to paying the agreed $4.5 billion over a six-year period with no single instalment exceeding $1.2 billion in any one year.
BP is still facing civil claims, however, including those arising under the Clean Water Act. The DoJ has said it is determined to prove BP’s gross negligence before the civil courts.
incident reportProviding terminals with up-to-date information on fires, leaks, spills and accidents in the oil and petrochemical industry
terminal news
TANK STORAGE •January/February2013 29
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regulations
Up until 2003 the requirements
for the explosion prevention
of tank storage facilities and
filling plants for flammable
liquids in Germany were legally
based on the ‘Verordnung
über brennbare Flüssigkeiten
(VbF). The technical rules for
this (TRbF) were prepared by
the German Committee on
Flammable Liquids (DAbF).
In 2003 the VbF was
replaced by a new regulation
without including the
DAbF, which meant that
the TRbF was not updated
because there was no legal
requirement to do so.
In 2008 a date was
set to remove the TRbF
from this new regulation
– 31 December 2012.
However as part of the
TRbF20 storage facilities for
packagings (drums and
IBCs etc) were ‘saved’ in a
technical rule falling into the
scope of a regulation dealing
with hazardous substances. In
the TRGS 510 the requirements
for storage facilities for
transportable containments
for hazardous substances
are also summarised, but
in very general terms.
As part of the TRbF20
storage facilities were
‘saved’ in a technical rule
falling into the scope of
a regulation dealing with
hazardous substances: In the
TRGS 510 the requirements
for storage facilities for
transportable containments
for hazardous substances
are also summarised, but
in very general terms.
Saving TRbF 20 and 30
A similar TRGS 509 for the tank
storage and filling plants is in
preparation but still deals
with these plants in a general
way. So a more detailed
rule regarding this TRGS
509 is needed for anybody
concerned with tank storage.
There was significant
interest in ‘saving’ the
contents of TRbF 20 ‘Storage
facilities’ and TRbF 30 ‘Filling
and emptying plants’ and
a private working group
was founded by German
Association of TÜV (VdTÜV).
The group’s aim is to:
• Combine the requirements
of TRbF 20 and 30 as far
as possible in one rule
• Update the technical
contents of TRbF 20 and 30
regarding new technical
rules in Germany
• Delete obsolete
requirements
• Adopt the new
prepared rule as law
• Implement some national
consequences resulting
from Buncefield.
The group also wants to add:
• Requirements concerning
the combined storage
of transportable
containments and
tanks in one plant
• Requirements for the
storage of highly viscous
liquids in tanks
• Some very special
regulations e. g.
concerning the collection
of flammable liquids in
workshops or as waste.
Specific requirements, i.e.
regarding storage facilities
in which transportable
containments are connected
directly with a production
plant (active storage), are
dealt with in annexes to allow
a reduction of the main text
to the applicable one for
the most part of the users.
Publication of VdTÜV-Merkblatt 967:2011-11
The working group has
produced VdTÜV-Merkblatt
967 ‘Requirements to storage
facilities with fixed tanks,
to the active storage in
transportable containments
and to filling and emptying
plants for flammable liquids’.
VdTÜV-Merkblatt
967 deals with :
• Storage of liquids either
under- or above ground
• Storage facilities in which
transportable containments
are connected directly
with a production plant
• Transportable collection
containments
• Filling and emptying plants
for liquids with a flash point of
up to 100°C. The liquids have
been differentiated into those
with a flash point of up to 55°C,
dealt with by the old European
law concerning hazardous
substances (in the Merkblatt
these liquids are abbreviated
as ‘elh’), and liquids with a
flash point between 55°C and
100°C (in the Merkblatt these
liquids are abbreviated as ‘se’).
The new flash point limits
Germany: new changes explained
Updated requirements for preventing explosions at tank storage facilities and filling plants for flammable liquids came in on 31 December 2012
TANK STORAGE •January/February2013 33
regulations
of the Globally Harmonised
System (GHS) can be
implemented without any
changes, bearing in mind
that in general a liquid with
a flash point of more than
55°C causes no explosion risk
in Germany under normal
storage and filling conditions.
Graduation of facilities
A new scheme of
graduation has been
implemented differentiating
between storage facilities
and filling plants:
This graduation is especially
necessary for the distinction of
requirements for the fire safety
or the extension of areas
with an explosion hazard.
Updating requirements
Due to the TRbF 20 and 30’s
long existence, there was
the need to re-discuss all
requirements. In many cases a
complete change in wording
was necessary to make the
intention of the requirement
clearer. In other cases there
was only an editorial adoption
to the new national legal
basis or the content as well
as the wording could be
taken as given. But even with
newly worded requirements
it was the intention to save
the level of safety of TRbF
20 and 30 in both directions:
no weaker or stronger
requirements as given before.
Structure of the Merkblatt
Some items were placed in
annexes to allow a reduction
of the main text. Some of these
annexes are dealing with
very specific items, e. g. the
necessity of a bund for liquids
with a vapour pressure of more
than 2bar or the description
of the ‘active storage’. Other
annexes were created only
to save knowledge that
otherwise would be lost.
The main text is structured
mainly in accordance to
TRbF 20. That means that
after some general clauses
(e. g. scope, definitions)
• The principle concepts
of storage facilities
and filling plants
• The fundamental
construction requirements
and retention of leakages
• The fire safe construction
of rooms with tanks
and/or filling plants
• Safety distances to the
neighbourhood or in the
tank storage facility
• Underground storage
• Explosion hazardous areas
an explosion prevention
• Safety equipment of
tanks and of filling and
emptying plants including
venting devices
• Electric flow between parts
of the facilities/plants and/
or the neighbourhood
and electrostatic charges,
lightning protection
and operational
requirements.
For more information: www.vdtuev.de/publikationen/merkblaetter
Grades for storage
Firepotential Volume
Grade 1 All se-liquid with > 5000 l
Grade 2 < 3000 l
Grade 3 3000 – 10000 l
Grade 4 > 10000 l
Grades for filling
Grade 11 All se-liquid
Grade 12 < 200 l/h
Grade 13 200 - 1000 l/h
Grade 14 > 1000 l/h
Charles Smissaert, general manager, Botlek Tank Terminal
Charles Smissaert, general manager, Botlek Tank Terminal
Right location, right connections
2012 was good for Botlek
Tank Terminal (BTT). The sector
as a whole has seen steep
backwardations in the oil market
especially towards the end of the year,
providing no incentives to store product.
We are quite optimistic about
2013. BTT is mainly active in clean fuels,
biodiesel and petrol diesel and we
are optimistic for those products.
Demand is there, but it is essentially
for immediate demand. The longer
term outlook is still not so strong and
we would like to see that grow a little
bit. However, the demand is there for
quality, highly flexible, efficient tankage.
In Rotterdam, we have the whole
Odfjell case, and we now have more
stringent inspections from the authorities.
While there is the risk that the authorities
may overreact, on the whole I believe
it is good that operators adhere to
what is in their permits and make sure
that they fulfil their requirements.
We are quite positive on the long-
term demand and the long-term drivers
of demand for tank storage. There is
a structural imbalance in oil products
across the world. Europe is short on
jet fuel and diesel, so that provides a
steady import flow, but there is a steady
export flow of petrol. On the back
of that, refineries have been closed
and more will follow. That means less
imported crude into the region and more
imported refined products. We still see
an increase in the trade volumes,
physical and in paper trade.
– is luck in store for the storage sector?
outlook 2013
34 January/February2013•TANK STORAGE
Andrés Suárez, deputy director of strategy and business development at CLH
Facing the challenges of the future
The international
economic situation
continues to be highly
complex and raise major
uncertainties. The demand
for products and services
has undergone a significant
decline ever since the
economic crisis began and,
despite the efforts made by
countries, companies and
citizens, recovery in the EU
countries is proving to be
slower than was expected.
The effects are obvious in
all sectors, including energy,
which traditionally has
depended on the evolution of
the economy and furthermore
has been affected by the
high volatility of oil prices.
In the case of Spain,
oil product consumption,
particularly in the area of
transportation fuels, has
fallen progressively since
2008 and the demand
currently stands at levels
similar to those of 1997.
The forecasts suggest
that 2013 will still be quite a
difficult year for the Spanish
economy, although some
outlook 2013
TANK STORAGE •January/February2013 35
Bill Henderson, vice president of liquids development, Kinder Morgan Terminals
Well-positioned for further growth
Overall we consider
2012 to have been
a very good year, certainly
commercially. For the Terminals
Group, we are positioned
to take advantage of the
ever evolving shale plays
developments on the North
American continent. This also
applies for Kinder Morgan’s
other business units as well.
Through 2011, 2012 and
even coming up in 2013 we
have had our largest capital
programmes for growth
that we have ever seen. For
2012 capital spending was
close to over $600 million
(€449 million) with over $1.4
billion committed projects,
and we are going to be in
excess of the 2012 capex
in 2013 on the liquids side.
Overall, certainly from
both commercial and growth
perspectives, 2012 has been
a very good year for Kinder
Morgan Terminals and we
see that trend continuing.
However, the past year has
not been without challenges,
particularly in the northeast US.
The biggest incidents
that we experienced in 2012
were both hurricanes. Isaac
hit New Orleans in August
and that was a challenge
for two of our facilities. The
floods challenged some of our
competitors more. We had
initial tankage and customer
disruption at our Harvey
terminal, and there was even
more significant disruption
and damage at our New
Orleans coal export facility.
However, the biggest
impact came from Hurricane
Sandy which affected all
three of our New York Harbour
terminals significantly. While
the damage was extensive,
and there is still much work to
do, we were able to resume
operations, limited in some
cases but quicker than we
could have hoped for.
Overall though, 2012
has been a solid year in
regards to throughputs that
we have seen throughout
our petroleum, chemical,
crude and other bulk liquids
terminals, with all facilities
performing pretty close to
budget with
the couple
of exceptions
mentioned
above.
Imports into
the North East US
remain strong.
The throughput
of petroleum
products through
our Gulf Coast
facilities from
USGC refiners
remains strong.
Owing to
changes in the
marketplace, we
have seen an
unprecedented
demand on our
docks. We have
identified and
are tackling
a number of
initiatives to
help alleviate
this. Overall,
we see the market being
stable and continuing to
grow in the coming years.
We are very upbeat on
the outlook for demand
for the North American
bulk liquids storage sector.
We observe the changing
dynamics in the market on
both the supply and on the
demand side, most of which
is driven by the new drilling
and fracking techniques
in the various shale plays.
The latter is changing the
markets as we speak which
provides opportunities for
new infrastructure, including
pipelines, tanks and docks.
The majority of the
opportunities are not
necessarily related to demand
driver growth. The change is
going to be driven by the shift
in where fuel is sourced from
and the further end product
specification changes driven
by changes in government
regulation, as well as refinery
closures outside the Gulf
Coast. The changes in
sourcing are what will fuel the
opportunities and need for
investment by Kinder Morgan.
Andrés Suárez, deputy director Strategy and Business Development at CLH
Bill Henderson, vice president of Liquids Development, Kinder Morgan Terminals
national and international
bodies are beginning to
indicate that the first signs
of recovery will start to show
towards the end of this year.
With regards to oil
products, since demand is
closely bound up with the
economic situation, any
recovery of consumption levels
will depend on economic
recovery occurring.
outlook 2013
36 January/February2013•TANK STORAGE
Robb Barnes, vice president of Magellan Terminals
Investing for future growth
Our assets performed
well in 2012, experiencing
both increased throughputs
and lease storage levels.
Our refined products
transportation, storage and
distribution business is solid and
we have significant growth
opportunities for our crude oil
transportation, storage and
distribution services as well as
the refined product business.
Thanks to enhanced
drilling techniques, domestic
oil production is continuing
to increase. Many new
production basins in the
US do not have adequate
pipeline takeaway capacity
to safely transport the crude
oil from where it is produced
to where it is refined. As a
result, substantial investment
in new pipeline and storage
infrastructure is necessary.
Magellan is actively
working on new crude oil
infrastructure projects to
transport, store and distribute
North American crude oil.
These projects include the
reversal of our Crane to
Houston pipeline system and
the construction of the new
BridgeTex Pipeline system.
Both systems originate in
the Permian basin and
require additional storage
capacity at the origin
and destination points.
Generally, we expect
2013 demand for our storage
services to be strong. Our
customers like the fact that
Magellan does not compete
with them in the marketplace.
While our base
transportation and storage
business remain solid, our
growth opportunities are
associated with the increase in
domestic crude oil production.
In fact, we expect 85% of
our expansion spending for
the next two years will be
on crude oil transportation
and storage assets.
Regarding the longer
term outlook, forecasts for
increased domestic crude
production in various basins
around the US are strong,
especially in the Permian
Basin of Texas. As long as we
have a reasonable regulatory
environment, our country
The prognosticators
believe that North America
is looking at energy
independence by 2025.
The whole dynamic is
shifting from North America
being an import region for
feedstocks, etc to being
self sufficient, with a large
potential for exports. So
the whole infrastructure
play starts to change.
We observe the
petrochemical business
where a few years ago major
petrochemical companies
were looking outside of North
America for the development
of petrochemical facilities.
Now, given the supply
growth in North America,
there has been a significant
number of petrochemical
announcements for new
plants and additions to
current manufacturing
facilities. The latter is all
driven by lower supply costs
and availability of supply.
So from an infrastructure
perspective, to be able to
link that supply to demand
creates a wealth of
opportunities for terminal and
storage companies. And in
those markets where the US
and Canada can become
exporters, there is room
for even further growth
in North America.
Brett Simpson, Group CEO, LBC Tank Terminals
Committed to safety and growth
Overall the market appears positive
and strong; however, on closer
inspection we have observed some
differences in performance between
regions and by product type.
Globally LBC has continued in its
commitment to invest and grow in 2012
and utilisation has been high within the
geographical hubs, throughout the
group. In addition we have seen strong
growth in certain product areas. LBC’s
investments are directly linked to customer
demand. Typically, rather like a matrix, we
experience both a strong demand in certain
geographic sectors, such as in the US for
example, and in certain product areas.
Demand for storage at an international
level is driven by product dislocation in
one form or another, i.e. the dislocation
between supply and demand. Asia
continues to grow, however we anticipate
a slower pace for 2013; and within our
European region, LBC is firmly focused
on customer service and investment in
our business infrastructure allowing us to
leverage global product flows under longer
term contracts for European imports.
We see the biggest single change around
fracturing techniques which has opened
up the market for shale gas and tight oil
reserves in North America. In the longer term,
it is reasonable to expect to see a similar
pattern in China, which has the world’s
largest reserves
of shale gas.
These two
economic and
industrial power
houses will
therefore import
and export
different things.
In respect
of 2013, LBC is
responding to
an increasing
number of
requests for
storage and
is actively
building out
its land bank in
the global hubs.
Currently our
focused build-
out activities are centred on the US
Gulf Coast, where LBC has a valuable
land bank with deep water access.
More specifically, over the coming
year, we anticipate growth in certain
areas such as base oil and chemicals,
as a response to industry changes.
Providing value adding services is routine
day-to-day business for LBC. As an example,
probably the most significant service we are
able to provide in Houston is in continuing
to provide our low at-dock demurrage, a
notorious industry issue in the Houston Ship
Channel area. This is possible because
we have the ability to build a new
dock parallel to building new storage.
Brett Simpson, Group CEO, LBC Tank Terminals
outlook 2013
TANK STORAGE •January/February2013 37
will have the opportunity to
achieve the goal of energy
independence in the future.
An increase in domestic
production creates significant
opportunities for new pipeline
and storage projects.
Factors which will
impact demand for refined
products include the CAFÉ
standards, the Renewable
Fuels Standard and other
environmental initiatives such
as EPA’s Tier III regulations.
Storage demand at our
marine terminals is driven
by market structure, pricing
volatility and connectivity.
Demand for marine storage
has resulted in significant
new tank construction
projects. We have added
almost 7 million barrels of
marine storage since 2007.
Throughput at our
inland terminals is driven by
demand for refined petroleum
products. We expect stable
refined products demand
going forward but overall
volume growth due to
recent higher volume
commitments.
Danny Oliver, senior vice president of marketing and business development, NuStar Energy
Set fair for continued growth
We consider 2012
a successful year
for NuStar as earnings
in the storage segment
were roughly 7% higher
than the previous year.
I believe one thing that
differentiates NuStar from
some of the other storage
providers is that we have a
very high percentage of what
I categorise as ‘fundamental
storage’, where storage is
associated with a necessary
product flow or
crude flow. We have
a lot of terminals
that receive finished
product out of
refineries and as
those refineries run,
those terminals are
always going to be
used to clear the
refinery regardless
of market structure.
We don’t have
a lot of the so-
called ‘contango’
storage that is
subject to trading
opportunities.
The market
structure has not
been there during
the past couple
of years in the
contango storage
segment, with
the market being
backwardated.
Consequently, the contango
type of storage locations
have not been as popular as
they were two years ago. We
have seen that, especially
in Europe where the storage
sector has suffered a little
more than here in the US.
On a more global basis –
and this has worked well for
NuStar specifically – or on a
macro basis in North America,
one of the drivers for storage
that we have seen in the past
couple of years has been
in shale oil development.
The other development
has been rapid expansion
of crude oil production off
the coast of Brazil. This new
production is trying to find the
logistics to get it to market and
that has driven some demand
and expansion opportunities
in the Caribbean.
Our St Eustatius terminal
in the Netherlands Antilles
has benefited from these
new trade flows out of South
America. St Eustatius is our
largest terminal with
about 13 million
barrels today and,
in January, we will
put another million
barrels into service.
We also are looking
at further expansion
of the St Eustatius
facility associated
with the crude oil
flows from South
America, but it is still
early in the process.
The shale plays
in the US and some
of the new South
American crude oil
production have not
only driven some
specific projects
for NuStar, but also
for the storage
segment in general.
We are not seeing the
same significant growth
opportunities in the European
storage sector, however.
Nevertheless, we have
been very pleased with our
operations in the UK and
elsewhere in Europe. We
have seen slight increases in
our earnings in our European
operations in 2012 versus 2011.
In the UK, our expectation for
2013 is to see similar earnings
to what we saw in 2012. It is
definitely a more challenging
environment. Utilisation in
the UK is perhaps a bit lower
than it is in North America.
However, for the most part, we
have our UK storage locked
up in long-term contracts
so we are not feeling the
immediate pressure there.
As for the longer term,
even five years out, we see a
continued need to expand
infrastructure, especially in
North America, to move
increased production out of
these shale oil plays. I think
that is going to be with us
for quite some time. And of
course, there is always the
possibility that the market
structure comes back to
Robb Barnes, vice president of Magellan Terminals and Crude Oil
Danny Oliver, senior vice president of Marketing and Business Development, NuStar Energy
‘We are not seeing the same significant growth opportunities in the European storage sector’ Danny Oliver, senior vice president of marketing and business development, NuStar Energy
outlook 2013
38 January/February2013•TANK STORAGE
support storage from a
trading perspective – that
there is more contango in
the market. That’s an easy
driver for storage when the
market structure supports it.
Our challenge right now
is being an early responder
to the shale oil infrastructure
requirements. NuStar was
the first mover for the Eagle
Ford Shale play in Texas and
that has helped establish
ourselves and it drives
new developments. So we
will continue to focus on
infrastructure for some of these
shale plays in North America.
With regard to our overall
strategy, at the highest level
there is a strategic direction
change going on at NuStar.
We had three refineries that
we owned: two asphalt and
one fuels. We have been
divesting those refining
assets and turning away
from that margin-based side
refining business to focus
on the fee-based storage
and pipeline operations. So
there is very much a strategic
direction change at NuStar
to focus on the storage
and pipeline segments.
More specifically, to sum
up our specific growth plans
in those segments: it would
be continued development
of shale oil infrastructure
in North America and
expansion in the Caribbean
to address the infrastructure
needs around South
American/Latin American
crude oil production.
Colin Conner, managing director, Oiltanking
Planning for the long term
The storage industry experienced
divergent trends in 2012 with
different regions around the world
facing their own set of challenges.
From a global perspective, continued
backwardation, marked by future
prices remaining too low to hold
inventory, purged the demand for
speculative storage. On the other
hand, continued motorisation of
developing regions, economic recovery
in select markets and dramatically
changing supply demand imbalances
across the globe and within domestic
markets, fuelled demand for long-
term energy infrastructure.
Political tensions in the Middle East
and North Africa, continuing North
American shale revolution, slower
than anticipated growth in Asia and
further consolidation of the refining
sector in Europe were the major topics
driving the oil and petrochemical
industries in 2012 and having the
major impact on the storage industry
in both the short- and long-term.
In 2012 the industry witnessed the
effects of increased focus by local
authorities on compliance with safety,
environmental and security regulations.
Ability to serve customers in a safe,
efficient and environmentally sound
way is becoming the most crucial
competitive factor within the industry.
Oiltanking’s commitment to these
ideals is absolute as we continue to
manage our assets around the world
with ‘best in class’ approaches and
long-term investment planning.
Oiltanking expects that 2013’s
developments in the storage sector
will, to a large extent, reflect the latest
revolutionary changes in the global
oil and chemical markets. Modern
large refineries in the rapidly growing
Middle East and Asia, increasing
competitiveness of the North American
oil and petrochemical sectors due to
the new feedstock base and closures
of older and smaller refining facilities in
Europe, will further change the global
trade flows of liquid bulk and increase
the role of long-distance shipping.
International independent storage
operators with a
broad, long-term
customer base will
be able to benefit
from these trends
in 2013 as well as in
the following years.
As the largest
share of incremental
oil supply is expected
to come from North
America, while Asia
and the Middle East
will add most to the
future incremental
demand, these
regions are projected
to see the major
growth of storage
infrastructure. However, the demand
for storage capacities is expected to
remain strong in practically all parts
of the world – being concentrated
around both the established and
new ‘hub regions’. Further decisions
which will impact the industry include
Japan’s conclusion concerning
nuclear energy and the US’ evolving
strategic view on exports of energy
resources versus value-creating
manufacturing of energy derivatives.
In 2012 Oiltanking performed
well, with many of our terminals
exceeding the expectation we set
at the beginning of the year.
We see the main challenges of
the market in the increasing volatility
and unpredictability of the oil
markets: a number of ‘wild cards’,
such as the impact of changing
growth dynamics of the Chinese
economy or further technological
advancements, can seriously influence
the future flows of liquid bulk.
Looking to the years ahead,
Oiltanking aims to further diversify
both its geographical and product
portfolios. In terms of preferred locations
for the new terminals, Oiltanking is
focusing on the growing storage
markets of Asia, North America, Middle
East and Africa, while further
strengthening its positions in
Europe and Latin America.
Colin Conner, managing director, Oiltanking
outlook 2013
TANK STORAGE •January/February2013 39
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Walter E. Wattenbergh, president, Stolthaven Terminals
A long-term perspective
Focusing on 2013 is much
too narrow a perspective.
We take a long-term view
and, based on that, we are
continuing to execute Stolthaven’s
global expansion strategy.
Indeed, macroeconomic concerns
notwithstanding, I am optimistic
about the division’s growth plans. The
demand for safely managed and
responsibly operated high quality
storage is there. Steady as she goes.
Stolthaven has benefited from
significant investment in recent years,
as its London-based parent Stolt-
Nielsen has seen fit to underwrite
Stolthaven’s substantial global
expansion. Stolthaven Terminals is
one of three legs of Stolt-Nielsen’s
diversified bulk liquid logistics
business, along with Stolt Tank
Containers and Stolt Tankers.
All told, total capacity for
Stolthaven’s global network
has doubled to 3.9 million m3
over the last four years.
Will the pace of Stolthaven’s
expansion continue in 2013? There’s
no question that it takes time and
effort to integrate acquisitions and
to align them with Stolthaven’s own
global standards for safety – which
always comes first – efficiency
and operational performance.
Planning and executing capacity
expansions at our terminals around
the world is no less taxing. That
said, we are constantly looking
at new growth opportunities,
be they acquisitions, new joint
ventures or greenfield projects.
The demand is there and, working
together with Stolt Tankers and
Stolt Tank Containers, we can offer
customers integrated transportation
and storage solutions. As long
as these opportunities continue
to present themselves,
we will pursue them.
Walter E. Wattenbergh, president, Stolthaven Terminals
Aernout Boot, commercial manager, Vitol Tank Terminals International
Balancing growth and day-to-day performance
2012 has been a good
year for the terminals
sector. The industry has had
strong headwinds, with a
backwardated market that
has been very persistent for
the whole year across all
markets and all products.
Nevertheless, I believe
that most terminals in all the
major markets were operating
at 100% capacity and I don’t
see a lot of idle capacity in
main markets. So in that sense
it has been a good year for
the industry if you compare
it, for instance, to the shape
the tanker industry has been
in during the past two years
with enormous overcapacity.
That certainly is not the case
in the terminal sector.
With the oil market in
backwardation for the past 12
months, everyone that looks
for tanks has to ask themselves
twice whether they really
need one before they make a
commitment. Despite the fact
that people are facing these
conditions, as I said, we don’t
see idle capacity. I think that
is also because a lot of tank
capacity is tied up in long-
term contracts. The test will
come when these contracts
expire. If these contracts were
to expire in 2013, we might
see a bit more pressure.
With regard to 2013, I
believe the year will bring more
of the same that we have
seen in 2012. Structurally, there
is still growing demand for
tankage in the world, although
terminal operators need to be
very selective about locations
for new tanks, which must
add value. Having said that,
most markets will probably
stay in backwardation during
2013. We do see a bit of
contango coming back in
various products and various
markets this year, but by far it
won’t be the state we saw in
2008/2009 when people were
scrambling to get tanks.
The ongoing trend to shut
down oil refineries in Europe
is more of a good thing for
European terminal owners
because it means more imports
coming into the region, more
new flows and new dynamics
in supply and demand. I
believe the refinery capacity
will also be made available
to the market in most cases;
Coryton is a good example of
that. On the whole, the refinery
shutdowns perpetuate the
volatility and the dynamics
in the market which are
both good for terminals.
In terms of the outlook
for longer-term demand,
terminal operators need to be
selective where they invest in
new tanks. The industry needs
to be careful about not over
reaching and building more
tanks in the same locations.
The oil shipping industry
is a good analogy and a
good example of what the
terminals sector shouldn’t do.
A place like Fujairah is also
a good example of where
we have seen tremendous
over investment in storage
capacity, which, in our view,
is not justified by market
demand at that location
at the present time. A lot of
capacity is coming on stream
at Fujairah at the same time.
We saw one terminal come
online last year. In 2013 we
will see probably three new
facilities coming on and in 2014
there will be another terminal
starting up, perhaps even
two new facilities; so we have
five or six terminals all being
added to the existing market.
Our existing business was
also good. We saw record
throughputs in Fujairah,
Ventspils and Europoort, so
2012 has been an extremely
busy year for us flow-wise.
Regarding 2013, we are
still on a strong growth track.
We will start operating the
Mombasa terminal later
this month and the facility
will receive its first oil. That’s
a milestone. We have our
Vasiliko terminal project in
Cyprus, which is being built
right now. The first phase of
the project is on track for
completion in May 2014.
We also look at
opportunities to grow and
develop new business either
by means of new tanks or by
means of smart investments at
existing locations, such as new
jetty lines, manifold upgrades,
extra flexibility, and so on;
investments that enable us to
handle more oil at existing sites.
Due to the backwardated
market, our customers try to
use our tanks more intensively
and that is the reason we
saw the increase in our oil
throughput volumes in 2012.
I think that will also be the
case in 2013; players certainly
are not sitting on oil, they are
turning it over a good deal.
VTTI has a clear goal
to grow further. We have
set up an organisation in
Rotterdam, as well as in
various parts of the world, to
enable us to implement our
growth plans in a structured
way. At the same time, it is
all about being selective in
the growth opportunities that
we pursue. With our Fujairah
terminal, we have an optimal
location; a prime sea front
plot in close proximity to
the Port of Fujairah which
enjoys the shortest distance
to the oil jetties. We already
operate 47 tanks with a total
of 1.18 million m3 capacity.
Newly added to the
existing site is 250,000m2 of
the reclaimed land and
we are looking at the right
opportunities to use that
position constantly. There
are currently several business
plans under study on which
our business development
team work actively. These
potential business plans can
lead VTTI FT to have additional
storage of up to 1 million m3.
At the same time, we
are mindful of all the new
capacity that is coming on
stream around us in the market
in Fujairah this year and next.
For us, any new development
will not be a ‘copy and paste’
exercise,. it needs to be
something that adds value.
For the time being, we have
no approved timetable for
the execution of any specific
expansion plan at VTTI FT.
It is important to keep a
good balance, on the one
hand, between trying to grow
the business in the right places
and at the same time keep a
clear focus on the day-to-day
business. It requires a thorough
understanding of the market
in which we operate, to know
whether it makes sense to
invest and whether it doesn’t.
It is important to have the
discipline not to chase
every opportunity that
comes along.
outlook 2013
40 January/February2013•TANK STORAGE
Aernout Boot, commercial manager, VTTI
profile
A Prime locationThe Port of Fujairah in the
UAE is one region where
storage overcapacity, in the
long term, is definitely not a
problem. Despite being the
second largest oil bunkering
port in the world, it has storage
capacity of only 3 million m3 –
insufficient for its growing daily
volume of oil cargo handled.
Although the storage
capacity at Fujairah is
envisaged to increase to 7
million m3, significant additional
capacities will still be required
to meet the increasing cargo
volumes anticipated.
The port is increasingly
becoming a trading hub
for petro products due to its
proximity to shipping routes
and high demand of oil
products from Saudi Arabia,
Iraq, Yemen, India and
northeast African nations.
Fujairah is strategically
located outside Straits of
Hormuz, a major international
shipping passage carrying
approximately 40% of the worlds
crude oil supply. It naturally
offers deep water ports and the
ideal climate for all weather
deep water port, enabling open
sea terminal operations round
the year. It is free from events
such as piracy risk, offering
better security for businesses.
In addition to all this,
Fujairah is also close to
OPEC countries having an
oil production allocation of
around 20 million bpd.
With such strong attributes
it is no surprise that at least
seven major storage terminal
projects are planned in
the coming years.
IL&FS Prime Terminal FZC
(IPTF), a joint venture between
India-based IL&FS Maritime
Infrastructure Company
(IMIC) and UAE-based Prime
Terminals FZC, is just one of
these. IMIC is part of the IL&FS
group of companies, which is
one of the prime companies
in India developing large
infrastructure projects.
The IPTF Oil Terminal,
located in the vicinity of the
Port of Fujairah with a draft
of 15m, will benefit from a
dedicated pipeline direct
to the Port of Fujairah.
The land on which on
the terminal will is being built
has been leased from the
government of Fujairah under
a 25+25-years contract. The
company expects a full return
on investment within eight years.
The terminal is being
developed in two phases.
Phase 1 of the terminal
comprises 14 product tanks
with an aggregate storage
capacity of around 333,000m³.
Phase 1 is scheduled for
commissioning by early 2014.
Construction has started
on earthworks for the site fill
and preparations have been
completed. Mobilisation
of construction materials
of tank and associated
works is underway.
The project cost for
Phase 1 is approximately
$130 million (€100 million).
Phase 2 will have a capacity
of approximately 300,000m³.
At the time of completion the
total storage capacity for the
terminal for product storage
will be around 630,000m³ with
26 operational product tanks.
The terminal has been
designed to handle heavy
fuel oil, fuel oil, gasoil/diesel,
jet fuel, petrol and additives.
Provision for additional facilities
like blending, heating, internal/
external transfers and flexibility
in product usage have been
incorporated in the terminal.
As it is still early days, IPTF
is in discussions with potential
customers in this sector.
The feedback received is
confirmatory and firm tie-ups are
in process, according to Shruti
Arora, from IMIC and project
director for the Fujairah project.
In October last year the
Phase 1 EPC contract was
awarded to IL&FS Engineering
and Construction Company
(IECC), who has employed
IOT Infrastructure and Energy
Services as its subcontractor.
‘A combination of project
management, expertise,
experience and local
presence are the key reasons
that led to the selection of
IECC,’ Arora explains.
Multinational construction
company Saudi Binladen Group
has a significant shareholding in
IECC, providing the company
with significant experience in
successful implementation of
mega infrastructure projects,
as well as proven project
management abilities.
UAE-based engineering
consultancy firm MUC Oil &
Gas Engineering Consultancy
has been appointed as the
employer’s representative/
consultant and will be taking
the project management
consultancy role for the
project, including project
design management
and overall construction
management, as well as the
project quality management
and HSE management.
IMIC is already engaged
in projects in India and has
been considering opportunities
overseas as well, particularly
focusing on MENA and eastern
Africa. It is the first time IMIC is
ventured into the port based
oil logistics business, and with
everything going for the project,
it is very unlikely to be the last.
With so much happening in Fujairah,Tank Storage magazine talks to IL&FS PrimeTerminal, one of the latest companies to breakground in the rapidly developing region
TANK STORAGE •January/February2013 41
page header
38 January/February2013•TANK STORAGE
World-leader in innovative products and solutions for aboveground storage tanks.
Tank OptimizationWorking capacity optimizationInventory / heel reductionEmissions reductionEngineered safetyIn-service cycle optimization
HMT ProductsFloating roof seal systemsFloating roof drain systemsInternal �oating roofsGeodesic dome roofsEmissions reduction devicesFlame arrestor / vent products
HMT ServicesTank repair & maintenanceTank inspection & calibrationNew tank constructionPainting, coating and liningTank engineering
Locations worldwideHeadquarters: 24 Waterway Ave, Ste 400,
The Woodlands, TX 77380
Industry-Leading Tank Product Technologies
Floating Roof Seal Systems
Geodesic Dome Roofs
Aluminum IFR Systems
GREIFR Systems
Floating Roof Drain Systems
www.hmttank.com +1 (281) 681-7000
Oil terminal storage capacity
in the Middle East is forecasted
to grow by about 5 million
m3 over the next four years
mainly due to the huge
planned increase in storage
capacity in Fujairah, United
Arab Emirates (UAE).
The region’s construction
boom comes at a time of
rising oil production in the
Middle East to meet growing
international demand,
especially from India, China
and expanding energy
markets in southeast Asia.
Demand is also growing
in the Middle East itself,
where several new refineries
are planned to open
over the next few years in
Saudi Arabia, Kuwait and
Fujairah, while a number of
countries are planning to
expand existing refineries.
The choice of Fujairah
as the location to build
new storage terminals owes
to the emirate’s strategic
location near to major oil
producing countries at
the mouth of the Strait of
Hormuz, with safe, deep
water anchorage available
in UAE territorial waters.
Already the world’s
second largest bunkering
centre, the growth of oil
storage facilities in the
Port of Fujairah is receiving
strong support from the
Fujairah government.
Some 5.4 million m3
of storage capacity was
in operation in Fujairah at
the end of 2012, which is
forecasted to increase to
7 million m3 by the end of
2013 with the completion
of new storage projects
totalling 1.6 million m3.
Based on terminal projects
approved and land allocated
for terminal
construction,
the government
expects Fujairah’s
storage terminal
capacity to
increase to 9
million m3 by the
end of 2014 and
reach around 10
million m3 in 2015.
‘Not all storage
companies are
fighting for the
same clients.
For example,
Concord is with Sinochem,
Gulf Petrochem is with
Glencore and Socar Aurora
Fujairah Terminal (SAFT) is
with Socar of Azerbaijan,’
Salem Abdo Khalil, technical
advisor to the Government
of Fujairah, explains.
Currently 12 companies
already operate, or are
planning to construct, oil
terminal facilities in Fujairah
with almost all offering third
party storage facilities. In
addition to those already
mentioned, others include
Vopak Horizon Fujairah (VHFL),
VTTI Fujairah Terminal (VTTI
FTL), EPPCO, ENOC, Emarat,
GPS-Chemoil, Gulf Petrochem,
IL&FS Prime Terminals FZC (IPTF),
Concord Energy Fujairah Oil
Terminal, ENOC Depot and
Main Oil Crude Terminal (MOT).
Until recently almost all
storage terminal capacity in
Fujairah was built for bunkering
use. This is changing however,
due to the completion of the
ADCOP Abu Dhabi-Fujairah
Crude Oil Pipeline and the
planned construction of a
new refinery in Fujairah which
will increase demand for
crude oil and refined product
storage in the port in future.
= double trouble?Operators in Fujairahare feeling pleased with themselves: refinery capacity is growing, the new ADCOP pipeline has just opened and the location is attracting traders from all across Asia.We speak to the main players to find out whether they are now in danger ofovercapacity
storage in the middle east
TANK STORAGE •January/February2013 43
World-leader in innovative products and solutions for aboveground storage tanks.
Tank OptimizationWorking capacity optimizationInventory / heel reductionEmissions reductionEngineered safetyIn-service cycle optimization
HMT ProductsFloating roof seal systemsFloating roof drain systemsInternal �oating roofsGeodesic dome roofsEmissions reduction devicesFlame arrestor / vent products
HMT ServicesTank repair & maintenanceTank inspection & calibrationNew tank constructionPainting, coating and liningTank engineering
Locations worldwideHeadquarters: 24 Waterway Ave, Ste 400,
The Woodlands, TX 77380
Industry-Leading Tank Product Technologies
Floating Roof Seal Systems
Geodesic Dome Roofs
Aluminum IFR Systems
GREIFR Systems
Floating Roof Drain Systems
www.hmttank.com +1 (281) 681-7000
5.4 million m3 of storage capacity was in operation in Fujairah at the end of 2012, which is forecasted to increase to 7 million m3 by the end of 2013 with the completion of new storage projects totalling 1.6 million m3
In addition, oil producers
elsewhere in the Middle East
and their customers, as well
as international oil traders, are
looking for safe storage outside
the Strait of Hormuz for which
Fujairah is ideally placed to
serve the global oil market.
‘We have major players
operating here so we want to
be selective. We prequalify
applicants, study them
and their plans, then take
a decision,’ Khalil says. ‘We
have limited land in Fujairah
Port and we are considering
diversification of terminals’
activities such as encouraging
blending services and
consolidating cargoes so that
end users have options.’
The government of Fujairah
has invested in developing
modern, high capacity oil
terminals to handle the large
volume of crude and refined
products expected to pass
through the port in future.
Facilities include seven berths,
with a combined length
of around 2,000m, able to
accommodate six large
vessels or 13 small tankers.
Some 52 marine loading
arms are installed in the port
at present while the central
matrix manifold connects all
storage terminals to all the
berths and interconnects
each storage terminal
with each other as well.
To serve the growing
number of vessels calling at
the port as the number and
size of the storage terminals
increases, there are two
additional berths (8 and 9) with
a combined length of 800m.
Fujairah Port Master Plan
calls eventually for 21 berths
to operate in the Oil Port Basin
and adjacent breakwater.
These will include berths with
a 23-25m draft designed to
accommodate VLCC tankers.
In addition to these
facilities, Khalil notes
that Vopak operates six
independent berths and has
one Single Point Mooring
(SPM) for loading and
discharge from its recently
expanded storage terminal.
In addition to building
the port infrastructure, the
government of Fujairah is
also attracting investors
of tank terminals with
attractive port tariffs.
‘The government is
reasonable with port charges.
There is a volume incentive –
the more throughput, the more
incentives there are,’ Khalil
notes. ‘Also, the government
of Fujairah has taken on
the burden of investment
in the port infrastructure.
Companies only have to
build their terminals which is a
great cost saving to them.’
With the volume of
crude, bunkers and refined
products stored and traded
in Fujairah poised to increase
substantially, it is expected
to be only a matter of time
before Fujairah becomes an
oil pricing centre.
‘Becoming
an oil pricing
centre could
be a byproduct
of Fujairah’s
storage terminal
development,’
Khalil remarks.
‘Fujairah
government’s
idea is to fully
utilise its location
potential to open
up jobs for locals.’
The operators’ point of view
Terminal operators building
capacity in the region are
confident overcapacity will
not be a problem given the
large growth potential as
an international oil hub.
‘I am a firm believer in
creating the infrastructure first
and then the business comes.
There were similar concerns
about overcapacity when
Singapore developed but now
storage is fully utilised there,’
Sanjeev Sisaudia, CEO of Gulf
Petrochem says. ‘Once people
know storage capacity is
available business will follow.
As several projects are going
on in Fujairah it can give an
overcapacity impression but
after a while no more land will
be available. There is a limit.’
Phase 1 of Gulf
Petrochem’s planned
1.2 million m3 oil terminal
will be commissioned at
the end of January.
There are 17 tanks in Phase
1 totalling 412,000m3, ranging
in capacity from 12,000m3 to
40,000m3. There is flexibility
with the facilities and through
connectivity with the Port
of Fujairah as all terminals
and jetties are connected.
Around 25% of Gulf
Petrochem’s storage capacity
is expected to be used for
inhouse trading activities for
project partner Glencore,
while the remaining 75%
share of capacity will be
for third party rental.
‘If we see interest for
higher contracted capacity
then we will open up as all
our tanks are profit centres,’
Sisaudia says. ‘Some storage
capacity already is leased. The
balance is under negotiation
and should be finalised soon.
‘Most contacts are from
major trading companies
who see Fujairah as the
next big location. These are
companies evaluating their
business options. There is a
mix of companies; some are
European, southeast Asian
and some from China.’
Gulf Petrochem
expects the majority of its
storage capacity to be
used for fuel oil, including
bunkering, followed by gasoil
products. Phase 1 utilisation
is expected to exceed
65% for bunkering alone.
‘Depending on the
availability of arbitrage,
products stored here will come
from Indian refineries; also, a
lot from the Middle East region
and southeast Asia,’ Sisaudia
says. ‘In terms of product
destinations Fujairah is the re-
exporting hub to different parts
of the world, plus the Middle
East, East Africa, southeast
Asia, India and Pakistan.’
The company is still
Vopak Horizon Fujairah currently offers 2.1 million m3 of storage. Although there is space for another 1 million m3 no decision has been reached on expansion proposals
storage in the middle east
44 January/February2013•TANK STORAGE
‘I’m a firm believer in creating the infrastructure first and then the business comes. There were similar concerns about overcapacity when Singapore developed but now storage is fully utilised there’ Sanjeev Sisaudia, CEO, Gulf Petrochem
Siavash Alishahpour, MD, VTTI FTL
storage in the middle east
TANK STORAGE •January/February2013 45
planning its Phase 2
development with its overall
size and tank capacities
still to be confirmed. The
terminal site has space to
construct an additional
788,000m3 of storage. One
possibility is that Phase 2 also
will be 412,000m3, doubling
the terminal’s capacity.
‘We expect Phase
2 commissioning will not
be before 2015. We are
trying to get clearance
as there are mountains to
be cleared on the site.’
Chemicals: new opportunity?
‘We are not planning
chemical storage for Fujairah
right now but we are not
ruling this out for Phase 2
if market analysis proves
positive and we see market
potential,’ Sisaudia adds.
Although most new
storage capacity in Fujairah
is planned to handle crude
and refined products, the
Port of Fujairah also has
approved construction
of a chemical terminal,
anticipating growing demand
for chemical storage in future.
‘Ganesh Benzoplast of
India handles acetone and
other chemicals for import
and re-export, supplying the
local market with chemicals
for the paint industry and
plastics,’ points out Khalil.
‘Chemical storage is in a
separate area of Fujairah
Port. Initially chemicals will be
imported through an oil berth,
but, later on, chemical tankers
will use their own berth.’
The big players
Phase 1 of Socar Aurora’s
Fujairah terminal was also
completed in 2012. It is being
built in three stages totalling
645,000m3. Phase 1 consisted
of three tanks totalling
115,000m3, including pump
facilities designed to handle
up to 4,500m3 per hour of
products and 3,000m3 per
hour for clean products.
Construction of Phase 2,
consisting of 11 tanks totalling
235,000m3, is underway and
due for completion later this
year. Phase 3 will consist of
eight tanks totalling 295,000m3
to be completed in 2014.
When fully operational the
terminal will handle over 5
million tonnes per year of
crude and refined products.
Aegean Oil Terminal is
also due to start up this year.
Located on a 100,000m2
site, the 465,000m3 capacity
terminal consists of eight
tanks which are due to be
operational by early 2013.
Emirates National Oil Co
(ENOC) is another company
expanding its storage
facilities, but for its own use
only. ENOC owns 200,000m3
of refined product storage
capacity in Fujairah Port
and a further 2 million m3 of
storage capacity at Jebel
Ali oil refinery in Dubai that
serves its expanded refinery.
ENOC Fujairah Distribution
and Trading Terminal
totalling 240,000m3 is due to
enter service by mid-year
to boost the company’s
refined products storage
capacity in Fujairah Port.
Meanwhile, existing
terminal operators in Fujairah
Port are also planning further
growth in capacity including
VTTI Fujairah Terminal (VTTI
FTL) which has space to
build another 1 million m3
storage capacity and nearly
double its terminal size.
‘We completed major
terminal expansion projects
during 2009 and 2010. Our
terminal capacity expanded
from 470,000m3 to 1.18 million
m3,’ says Siavash Alishahpour,
MD of VTTI FTL. ‘We have
completed several other
small and medium projects
over the past three years
to further improve it.’
The VITOL Group is currently
VTTI FTL’s sole client though
this could change after the
terminal is expended. The
terminal currently handles
crude and a wide range
of petroleum products
including condensate,
naphtha, jet fuel, diesel and
different fuel oil grades.
In preparation for future
expansion VTTI FTL recently
added 250,000m2 of reclaimed
land to its existing sea front site.
No decision to build new tank
storage has been taken so far.
‘There are several
business plans under study
by our business development
team,’ Alishahpour says.
‘These potential business
plans can lead us to build
additional storage up to 1
million m3. However, there is
no approved timetable for
execution of any specific
plan for the time being.’
No sign of a slow down
Rapid expansion of Fujairah’s
storage capacity is expected
to slow in two to three
years as the oil market
absorbs the new capacity.
However, various other new
terminal and expansion
schemes are expected to
move ahead if demand for
storage continues to grow.
Eurex European Emirates
Industries, for example, plans
to build a 317,000m3 storage
terminal in Fujairah Port while
Falcon Fujairah Terminal plans
to build a 600,000m3 capacity
terminal in two phases.
Meanwhile, no decision
has been taken yet on
proposals to build Phase 7 at
Vopak Horizon Fujairah (VHF)
oil terminal where sufficient
space is understood to be
available to build an additional
1 million m3 storage capacity.
VHF currently offers 2.1
million m3 of storage after
Phase 6 of the VHF project,
VTTI Fujairah terminal has added 250,000m2 land for future expansion but has yet to reach a decision on the timetable for this
storage in the middle east
46 January/February2013•TANK STORAGE
20 new tanks ranging from
20,000 to 40,000m3 in size
and totalling 606,000m3 in
capacity, was commissioned
at the VHF terminal in 2012.
Vopak owns a 33.3% stake
in the petroleum terminal while
other shareholders are ENOC
subsidiary company Horizon
Terminals, the Government of
Fujairah and the Independent
Petroleum Group of Kuwait.
ENOC uses tanks for
fuel trading while ENOC’s
own petroleum terminal in
Fujairah is used to blend fuel
additives to produce petrol
for the domestic market.
The VHF terminal has seen
almost constant expansion
since the original 489,000m3
capacity Phase 1 facility
opened in 1999. Phases 2
and 3, completed in 2000
and 2001, added a further
combined 323,000m3 capacity,
expanding the terminal’s
storage facilities to 812,000m3.
After commissioning
the SPM buoy in 2003, VHF
added a further 300,000m3 of
storage with the completion
of Phase 4 in 2004. Phase 5,
which involved commissioning
tanks totalling 380,000m3,
was completed in 2008.
Prior to the recent Phase
6 expansion, the VHF terminal
offered 1.5 million m3 of
storage capacity in 48 mild
steel tanks ranging in size
from 6,000m3 to 60,000m3.
Flying high
One terminal development
scheme that has just secured
funding is Concord Energy
Group’s planned 1.15 million
m3 Fujairah Oil Terminal (FOT),
which is due for completion
in time to handle its first
cargo in October 2014.
‘We have spent the last
nine months working hard
to raise a $252 million (€189
million) project finance facility.
We successfully signed with a
consortium of six international
banks at the end of December
2012,’ says John Stuart, CEO
of Concord Energy’s Assets
Group. ‘Given the extremely
challenging debt markets, we
see the signing of this facility as
a major endorsement of the
very high quality of the project.’
Concord is partnered
by Sinopec and a Fujairah
government nominee
company in developing
the new terminal. Sinopec’s
involvement in the project
began after Concord
sold a 50% stake in the
project to Sinomart KTS
Development (Sinomart),
which has significant
experience in storage
terminal operations and is a
wholly owned subsidiary of
Sinopec Kantons Holdings.
Rotary Engineering has
been awarded a fixed price
EPC contract to complete the
new terminal in 21 months.
Construction is due to get
underway by the end of
January according to Stuart,
who notes: ‘The government
of Fujairah already has
constructed all of the port
facilities that our terminal will
utilise. With foundations of
solid rock the terminal does
not face any soil stabilisation
risks inherent in many terminal
construction projects.’
Concord’s terminal will
consist of 32 tanks when
completed. Eight tanks totalling
569,000m3 will be built to store
crude and fuel oil while four
tanks totalling 164,000m3 will be
installed to store fuel oil only.
Six tanks adding up to
152,000m3 will be constructed
to store diesel while a further
14 tanks totalling 270,000m3
will be built to hold petrol
and naphtha. Consequently,
refined products will occupy
about 40% of the terminal’s
storage capacity.
ADCOP recently completed
a 1.5 million bpd pipeline
from Abu Dhabi to Fujairah.
‘In addition to bunker
storage we will offer significant
crude oil storage capacity
as we anticipate taking
crude supplies directly from
the ADCOP pipeline. There
is interest from oil majors in
bringing in crude from the
pipeline and storing it in our
terminal. In future crude also
will be imported for the new
refinery planned for Fujairah.
Not all crude for the new
refinery will be available
from the Abu Dhabi-Fujairah
pipeline,’ Stuart says.
FOT will connect its
pipelines to the Fujairah Port
matrix manifold to load and
unload cargos for clients.
Connected to seven jetties in
the port, Concord’s terminal
will be designed to load and
unload crude and fuel oil at
4,000m3 per hour for batches
up to 120,000m3. Facilities
installed will allow petrol and
naphtha to be loaded and
unloaded at 1,500m3 per hour
for batches up to 30,000m3.
‘We are the first third
party terminal project here to
provide multiproduct storage.
Until now all storage terminal
development has been for
bunkers,’ Stuart says. ‘We
have deliberately planned
capacity for the storage of
crude, gasoil and petrol.
‘The demand for crude
storage is driven by the flow
from the ADCOP pipeline,
crude supply into the planned
new refinery, and break-bulk
and make-bulk flexibility. Our
terminal will facilitate imports
of “short” products such as
petrol and exports of “long”
products such as fuel oil.’
With construction work
about to get underway,
Concord is looking to conclude
take or pay contracts for one
to three years for its storage
tanks. According to Stuart,
the company already has
received two Letters of Intent
from trading company clients
for storage space and has
received inquiries from oil
majors for storage for up to 3
million barrels (500,000m3).
Concord is looking to
provide clients with facilities
to handle port calls by VLCC
oil tankers in future. Currently
fully loaded tankers up to
200,000 dwt can use Fujairah
Port’s jetties while only partially
loaded VLCCs can use the port
jetties due to draft restrictions.
‘We expect a mixture of
product origins: products from
India, especially petrol, when
there are shortages in the
Middle East. Also, there are
no local break-bulk facilities in
Fujairah now for west Africa,
that is done in Singapore at
present,’ Stuart explains.
‘We are discussing with
Fujairah Port about investing
in a SPM but that would
require a significant capacity
commitment by clients.
‘Currently Singapore is
the only major break bulk
location in either Asia or the
Middle East. VLCC loads of fuel
oil are shipped from Europe
and South America, then
broken into smaller cargoes
in Singapore and shipped to
other Asian destinations.
‘Once the full range of
products is available in Fujairah
product will be broken there
for on-sale into the region and
the east coast of Africa.’
Concord expects to have
contracted its entire terminal
capacity by the time the
terminal is commissioned.
‘It is more cost-effective
to move bunkering ashore
where there is lower risk of a
spill. Also, there will be oil from
the ADCOP pipeline taking
up storage and oil majors will
want to store products here.
‘There is little danger
of storage overcapacity in
Fujairah,’ Stuart agrees. Ship
to ship bunkering will come
onshore and take up capacity
due to both environmental
and economic pressures.’
John Stuart, CEO of assets group, Concord Energy Pte
page header
TANK STORAGE •January/February2013 43
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Location Bandar Jask, Iran Products Oil Capacity 20 million barrels Construction / expansion / Constructionacquisition Project start date May 2012 (announced) Investment $2.2 billion (€1.6 billion)Comment The new terminal will enable Iran
to export more oil from Caspian producers and provide a back-up option for Iran’s main export terminal at Kharg Island.
It will be connected to the Caspian Sea port of Neka via a 1 million bpd pipeline
Iranian Oil TerminalsLocation Faw Peninsula, Basra, IraqProducts Crude oil Construction / expansion / Expansionacquisition Designer / builder Leighton OffshoreProject start date October 2011 (announced) Completion date 2013Investment $1.3 billion (€992 million)Comment Leighton Offshore’s contract is worth
$518 million. The project includes the construction of two marine pipelines and one onshore pipelines, as well as the installation of four single point moorings for loading oil tankers. Foster Wheeler is handling the project management consultancy services
Iraqi Government
Location Port of Genaveh, Bushehr province, Iran
Products Crude oil Capacity 8 million barrels Construction / expansion / Constructionacquisition Project start date January 2012 (announced)Completion date End of 2015Investment €91 million
National Iranian Oil Terminals
Location Kazakhstan Products Oil Construction / expansion / Constructionacquisition Completion date The Aral Oil Terminal opened
in January 2012 but could be expanded by a further 12,000 bpd shortly
Comment The new terminal comprises oil storage tanks and a rail loading facility, which transports oil shipments from Tethys Petroleum’s Doris oilfield into the Kazakh rail system
Tethys Petroleum
Tank terminal update –Middle east
tank terminal update
48 January/February2013•TANK STORAGE
Location Ras Markaz, Duqm, OmanProducts Crude oil in addition to
other products Capacity 200 million barrels Construction / expansion / Constructionacquisition Project start date October 2012 (announced)Comment Oman Oil Company is already is
talks with potential clients, such as Petroleum Development Oman
Oman Oil Company
Location Jebel Ali, Dubai, UAEProducts Jet fuelCapacity 141,000m3
Construction / expansion / Constructionacquisition Designer / builder Punj LloydProject start date April 2012 (announced) Comment The terminal will feature a 60km
jet fuel pipeline to the Dubai International Airport, in addition to a tanker truck loading system which will connect the oil tanker berths with the related facilities
Horizon Terminals
Location Fujairah, UAE Products OilCapacity 675,000m3
Construction / expansion / Expansion from 86,000m3 acquisition to 675,000m3 with a total
21 storage tanksCompletion date Q3 2012
GPS Chemoil
Location Fujairah, UAEProducts Petroleum products Capacity 1 million m3
Construction / expansion / Expansion from 412,000m3 acquisition to 1 million m3
Completion date Q4 2012Investment $136 million (€103 million)
Gulf Petroleum
Location Fujairah, UAEProducts Oil Capacity 600,000m3
Construction / expansion / Constructionacquisition Designer / builder IL&FSCompletion date Mid-2014Investment $100 million (€76 million)
EPC contractComment Primestar and Leasing & Financial
Services began developing the terminal after receiving funding from a consortium of banks led by India’s Bank of Baroda
Primestar Energy
Location Fujairah, UAEProducts Crude oil, fuel oil, gasoil,
petrol, jet fuelCapacity 1.125 million m3
Construction / expansion / Constructionacquisition Designer / builder Rotary Engineering Project start date End 2011 Completion date Q4 2014
Concord Energy
Location Shoaiba, Saudi Arabia Products Fuel oil Capacity Seventeen storage tanks to be
built at the Shoaiba II Combined Cycle Power Plant Project
Construction / expansion / Constructionacquisition Designer / builder Rotary Engineering. The
EPC contract is worth $34 million (€26 million)
Project start date June 2012Completion date 2013Investment $1.23 billion
Shoaiba II Combined Cycle PowerPlant Project
Location King Fahd Industrial Port, Jubail, Saudi Arabia
Products Oil Capacity 250,000m3
Construction / expansion / Constructionacquisition Designer / builder Project start date November 2012 (announced)Completion date 2015 Investment $400 million (€305 million)
Vopak and SABIC
Location Jebel Ali Free Zone, Dubai, UAEProducts Petroleum products, including jet fuel Capacity 141,000m3
Construction / expansion / Constructionacquisition Project start date May 2012 (broke ground)Completion date Q4 2013Investment $142 million (€108 million)Comment The terminal will also feature
a 58km pipeline, which will be used to transport fuel to Dubai International Airport and Al Maktoum International Airport
Emirates National Oil Company
Location Fujairah, UAEProducts Oil Capacity 600,000m3Construction / expansion / Constructionacquisition Designer / builder IL&FSCompletion date Mid-2014Investment $100 million (€ million) EPC contractComment Primestar and Leasing & Financial
Services began developing the terminal after receiving funding from a consortium of banks led by India’s Bank of Baroda
Gulf Petroleum
tank terminal update
TANK STORAGE •January/February2013 49
tank terminal update
50 January/February2013•TANK STORAGE
Location Port of Fujairah, Fujairah, UAEProducts Oil Capacity 1.18 million m3, made up of
47 storage tanks, increased to 2.18 million m3
Construction / expansion / Expansionacquisition Project start date Beginning of 2014
Vitol Tank Terminals International
Location Fujairah, UAEProducts Fuel oils, gasoils and middle
distillates including diesel, gasoil and jet kerosene
Capacity Phase I: 144,000m3 in 2012 Phase II: 232,000m3 in 2013,
including 10 new storage tanks Phase III: 295,000m3 in 2014 Total: 645,000m3 comprising 22 tanksConstruction / expansion / Construction on Phase II of the acquisition terminal is underway as Phase
I has finished and the storage tanks built in both stages have been let. The project also includes a third phase, scheduled for completion in 2014. This will feature seven new tanks capable of storing a combined 295,000m3.
Project start date June 2012 (broke ground on second phase)
Completion date Q4 2013 (second phase)Investment Phase II will be built at a cost of
$61 million (€48.5 million), which is being supplied by Apicorp and the National Bank of Fujairah
SOCAR Aurora Fujairah Terminal
This list is based on information made available to Tank Storage magazine at the time of printing. If you would like to update the list with any additional terminal information for future issues, please email [email protected]
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page header
TANK STORAGE •January/February2013 47WWW.THERMAL.PENTAIR.COM
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page header
48 January/February2013•TANK STORAGE
emergency planning
TANK STORAGE •January/February2013 53
The Arthur Kill Waterway,
between New Jersey and
Staten Island, New York, serves
one of the busiest fuel and
petrochemical distribution
centres in the US. BP, Kinder
Morgan, Phillips 66, Gulf Oil,
NuStar and Motiva all have
terminals on Arthur Kill, which
was right in the main path of
Hurricane Sandy’s record surge.
There were several ‘minor’
spills along the waterway – two
were equivalent to about one
tanker truck each – but at the
Sewaren, New Jersey terminal of
Motiva Enterprises, (Shell), a tidal
surge dislodged and ruptured
a major fuel tank to discharge
approximately 378,000 gallons
of low-sulphur diesel into the
water, officials said. Nearly
three quarters of that amount
escaped the containment area,
rushing into the Arthur Kill and
its tributaries. The New Jersey
Department of Environmental
Affairs says it is the state’s
worst spill in over a decade.
Kayla Macke, spokesman
for Motiva, told Tank Storage
magazine: ‘We continuously
monitor inclement weather
developments such as
hurricanes, and initiate
preparation and response
plans to minimise any potential
impacts accordingly. The
safety of our employees
and assets, the community,
and the environment
remains our top priority.’
The tank was only 10% full,
so this may have played a part
in the tank being dislodged.
However ‘buoyancy’ rarely
affects large, industrial steel
tanks. The chances are
increased for a tank to become
buoyant during flooding if its
volume is low, says Rob Newset
of Amtech Tank Lining and Tank
Repair. ‘This mostly happens
to the fibreglass tanks that are
used in chemicals and waste
water treatment,’ he says.
‘We’ve had to replace a lot
of those since the storm.’
The US’ refining and
petrochemical manufacturers
have developed robust
preparedness measures that
can be taken in the event of
a hurricane or other extreme
weather event. However there
was no risk mitigation strategy,
no automated controls or
check valves that could have
anticipated a 14ft tidal surge
that overwhelmed everything
in its path. ‘You might have
heard reports, but if you
weren’t here, you have no
idea how bad it was. Nobody
has ever seen anything like
this, 48 people were killed,’
says Danny Falcone, a former
purchasing agent and terminal
operator in New York markets,
and now a fuels manager for
Renewable Energy Group,
headquartered in Iowa.
Ultimately, however, he said
the industry did a remarkable
job handling the disaster: ‘It
was the best outcome of the
worst situation. Everybody did
the best job they could.’
Facility roundup
Despite causing the worst
oil spills in New Jersey for 10
years, Sandy also ‘crippled’
terminal infrastructure. It did,
however, recover pretty fast.
The US Energy Information
Administration reported, as of 13
November 2012 that only five of
the 57 terminals in Sandy’s path
remained shut. Nevertheless, all
of the terminals were damaged
in some way. ‘Existing terminal
and transfer locations had the
primary function of getting
damaged equipment repaired
and the electricity back up
and running,’ Falcone says.
‘If it has to pump out water or
get a heat transfer to one of
the tanks, a terminal cannot
load or move any product.’
Over two weeks after the
storm five port terminals in the
Northeast remained closed: in
New Jersey, the Hess terminal in
Bayonne and CITGO terminal in
Linden; in New York, the Phillips
66 terminal in Tremley Point and
Motiva’s terminals in Brooklyn
and on Long Island. These
terminals are not only used for
receiving imports, they are also
used to receive waterborne
oil products from major
aggregating terminals in New
York Harbour in order to move
it into local distribution chains,
particularly in the New York
City area and on Long Island.
Phillips 66 says it had to take
steps to supply its wholesale
customers through its Linden
terminal until its Bayway,
New Jersey refinery resumed
operations. The processing
units at Bayway made it
through Sandy undamaged,
but the refinery’s capability
to pump existing inventory
to the terminal was disabled
along with the marine dock
which accepts shipments of
In t
he
storm
’s w
ake Hurricane Sandy shut oil distribution infrastructure in the Northeast
down cold at the end of last year, putting terminals, tanks and the supply chain to the ultimate test
by Nicholas Zeman
emergency planning
54 January/February2013•TANK STORAGE
fuel. Most of the damage
was to electrical equipment
flooded with saltwater during
the historic surge. Phillips
said Bayway would be
down for two to three weeks
following the storm. It also
was coordinating a clean
up effort with area officials
and the US Coast Guard.
Approximately 185 barrels, or
7,700 gallons, of oil was spilled
as a result of the storm surge.
Generators and the fuel
to run them were also in high
demand explains Dennis Burke
of Burke Oil, Massachusetts.
‘Burke Oil was fortunate
enough to have fuel on
hand to serve the Federal
Emergency Management
Administration and the New
York and New Jersey markets
areas most affected.’
Electric power was
the main issue for Kinder
Morgan, New York Harbour
terminals and its other
facilities in Carteret and Perth
Amboy in New Jersey and
Staten Island, New York.
‘Like others, we
experienced flooding,
damage and a loss of
electricity at our Northeast
facilities,’ Kinder Morgan
terminals president Jeff
Armstrong says. ‘Thanks to
our pre-storm preparations,
and extremely dedicated
employees working around
the clock following it, we have
made significant progress in
assessing these terminals and
preparing to resume service.
We will be able to resume
operations even if power has
not been restored, as we have
brought in power generation
resources from our operations
elsewhere. Additionally,
we are working closely with
government agencies to restart
operations as soon as possible.’
Nustar also indicated to
Tank Storage magazine that
its terminal in Paulsboro, New
Jersey was also compromised
by power outages: ‘We have
a good relationship with New
Jersey Governor’s office and
we had generators out at the
site quickly. But there was a lot
of flooding, and a lot of water
had to be pumped out.’
The storm also killed an
independent terminal deal.
TriState Biodiesel (TSB)of New
York was looking at purchasing
a fuel terminal along the
Pasaic River but, after
reviewing the damage done,
TSB is not moving forward with
the acquisition. ‘This location
was clearly in a flood zone,’
states Dehran Duckworth,
fuels manager at TSB.
Things look different
Hurricane Sandy showed the
intimate integration of the fuel
supply chain – if a terminal
taking loads off a pipeline
goes down, pretty soon the
pipeline is backed up and the
list goes on. Even the back-
up of a few loads can cause
huge disruptions. A bottleneck
in the Colonial Pipeline for
instance, the prime connector
of Gulf coast refining capacity
to New York markets caused
a build up in inventories. With
capacity disrupted, many
terminals in the region did not
have the ability to take volumes
off the Colonial Pipeline.
‘Even if you were not in the
path of the storm you were
still damaged because of
the chain reaction,’ Falcone
says, adding that the fuel
distribution system is fragile and
complicated. Every link supports
each other through symbiotic
relationships. The storm also
showed, however, that there is
an opportunity for independent
fuel suppliers – not 100%
dependent on the traditional
supply chain – to provide
product in times of shortages
or increased demand. ‘There
are going to be shortages,
and that is when you have a
good position with a ratable
product,’ Falcone says. ‘Having
your 60,000 gallons of storage
stocked will be gone in a day,
so you have to think bigger.’
‘We try to keep our avenues
of acquiring fuel very open,’
Duckworth agrees. ‘We are
connected to a small network
of producers in New England
and that kept us going through
the storm. For one thing it
was refreshing because there
was no skepticism about
biodiesel, we just heard “We
need fuel and we need it
now” from customers. There
has been a push-back against
biodiesel based on lack of
info, but it performed well and
even more importantly, was
available through the storm.’
All of a sudden, suppliers
with access to alternatives
like renewable fuels had an
opportunity. Even major oil
companies were making deals
with third parties to get fuel,
and the storm showed that
independent fuel suppliers
need to be prepared for those
situations in the future.
page header
TANK STORAGE •January/February2013 51
March 7-8, 2013 JW Marriott | Houston TX
This conference is response to the challenge being faced by U.S. petroleum companies who are pumping crude out of the Bakken shale in North Dakota and Montana. The sudden increase in volume has resulted in the problem that the companies are having problems shipping the crude to the refineries. This conference is a follow up to our highly successful 2012 Bakken Crude Oil Logistics Conference, where we had very good attendance, numerous sponsors, and a great lineup of speakers. This event is organized to help bring together the crude producers, the rail companies, truckers, barges, and those who pthose who provide technology solutions to help develop a more efficient supply chain.
www.crudeoillogistics.com
PRESENTED BY
training
56 January/February2013•TANK STORAGE
In the world of health and
safety, good workplace
competency takes centre
stage. In the early days,
competency was a mere
ideal thrashed out by safety
experts over bad coffee. Now,
competency has become
the standard high hazard sites
are compelled to achieve.
What is competency?
Like a fine wine, competence
matures over time. Bubbles
of personal improvement
float to the surface through
a mix of training, on-the-
job learning, instruction,
assessment and qualification.
Now, the Process Safety
Leadership Group (PSLG) report
into Safety and Environmental
Standards for Fuel Storage Sites
describes competency as:
‘A combination of practical
and thinking skills, experience
and knowledge. It means
the ability to undertake
responsibilities and to perform
activities to a recognised
standard on a regular basis.’
To clarify, competency
simply means keeping
the workplace safe
today, tomorrow and
happily thereafter.
Does everyone need to be competent?
In short, yes. This is particularly
the case given that the Health
and Safety Executive (HSE)
has grabbed the issue by
the scruff of the neck. As the
HSE embarks on its review of
competency management
systems, with a focus on high
hazard sites, the industry
must analyse its ability to
demonstrate and continually
develop competency.
Good competency systems:
• Support regulatory
compliance
• Reduce incidents
• Avoid working days lost
and potential litigation
• Enhance profitability
by getting things right
proactively rather
than reactively.
And this is more than just about
the law. Good competency
keeps staff happy thereby
improving culture and attitude
within working environments.
Balancing the equation
Good workplace competency
consists of a careful blend
of unique elements. Just
like the perfectly balanced
petrochemical compound,
getting the mix right is crucial
– one wrong ingredient and
things can quickly turn volatile.
Competency comprises
three core elements:
knowledge, skill and
experience. In this age of
greater autonomy, two key
behavioural aspects must also
be taken into consideration:
understanding and attitude.
The secret ingredients:
• Knowledge:the ability
to undertake specific
Training: just like a fine wine...
Client: Simon StorageBrief: Delivery of vocational assessment against L2 Diploma in Bulk Liquid Operations. Develop training modules based around Simon’s core operational principles, supporting the knowledge requirements of the L2 Diploma in Bulk Liquid Operations, including:• Process safety• Tank dipping and sampling operations• Jetty operator responsibilities• Safe product transfer• Road receipt and discharge operations• Rail receipt and discharge operations• Routine maintenanceTimeline: 2009 - present
Flexibleontraining,inflexibleonsafetyDeveloping training materials around Simon’s specific needs has had a measurable impact on the company’s competency culture. Outcomes include:• Standardising training material across the group and raising
the importance of the minimum operating procedures• Cost benefits by introducing authorised trainers• Validated training by an independent body (NSAPI)• Supporting cogent gold standards.
Storing up good faith with Simons
training
TANK STORAGE •January/February2013 57
tasks, in the right
order, with the correct
resources. Knowledge
can be derived through
classroom-based and
onsite training as well as
continuous development
within the workplace.
• Skill:practical and mental
aptitude to carry out
the task at hand, to a
recognised standard,
on a steadfast basis.
• Experience: develops
over time. It is important in
this development phase
that personnel know
what good competency
is and embed this into
their routine. This should
be supported by robust
assessment practices,
ensuring the ability to
perform prior to going
‘solo’ and refreshed
throughout their career.
• Understanding:a deeper
aspect of ‘knowledge’.
It represents individual
awareness of the
consequences of the
actions you take, be
those good or bad.
• Attitude:influenced
by a variety of factors
including personal aspects
of our lives that may
affect concentration.
Managing competency systems
A competence management
system (CMS) needs to ensure
that staff have received
appropriate training and
continuous development.
Any effective CMS should
align to six key principles:
1. Demonstrating leadership/
commitment
2. Identifying business critical
activities relating to the
control of accident hazards
3. Setting procedures
and standards
4. Compliance against
your standards
5. Taking actions to
improve competence
6. Commitment to continuous
improvement.
A good CMS does not
just provide assurance to
regulatory authorities; it
delivers tangible benefits
to the business by reducing
risks to people, environment,
plant and profit.
Industrial strength competency
Good workplace competency
is not just about a one off
review, observation or audit.
It lays the foundations on
which safer performance is
built and embedded in an
organisation, its culture, workers
and business. That is why it is
so important to get it right.
For more information: This article was written by John Reynolds, director at RTS – a leading provider of specialist safety training and consultancy to the petroleum and petrochemical industries, www.reynoldstraining.com
John Reynolds will also be presenting at the upcoming StocExpo Conference & Expo in Antwerp from 19-21 March, www.stocexpo.com
Cogent Cogent, led by employers, works closely with industry to identify skills gaps and needs, developing standards and qualifications. Cogent underpins the quality of the standards developed and passes to the awarding bodies for formulation into the formal qualification structure.
National Skills Academy for NSAPI links training providers with industry, providing Process Industries skills assurance, helping identify training gaps as well as
benchmarking skills against the gold standards. NSAPI also leads the development in Process Safety
Training Standards, providing a suite of standards from senior executive through to operational personnel.
They are leading the way developing standards with Cogent and the downstream advisory council to improve petroleum safety training aimed at contractors in high hazard environments.
Awarding bodies PAAVQSet/ Awarding bodies play a vital role in ensuring the quality City and Guilds of the standards delivered. These include: • Approving centres for delivery of the qualifications • Ensuring Assessors are Competent to assess • Providing external quality assurance to ensure that centres
reach and maintain the high standards required. They are regulated by the Office of Qualifications
and Examinations Regulation, the Welsh Government, CCEA and the Scottish Qualifications Authority.
Trainers/assessors and The trainers’ role is vital in imparting knowledge. Whether training providers training is developed and delivered in-house or provided by an
external provider, it is the quality and consistency that counts.
Awarding body
PAAVQ-Set and City and Guilds
PAAVQ-Set and City and Guilds
NEBOSH
NSAPI
Cogent
Qualificationtype
L3 award assessing competence in the work environment
Downstream standards:• L2 Diploma in Bulk
Liquid Operations• L2 & 3 Diploma in
Field Operations• L2 & 3 Diploma in
Jetty Operations• L3 Diploma in Control
Room Operations
• L3 Award in Oil and Gas Operational Safety
• L2 Award in Health and Safety for Process Industries
• Process Safety Leadership• Process Safety Management
- Foundations• Process Safety Management
- Operations (due 2013)
Downstream Gold Standards• Bulk Storage Operator• Jetty Operator• Field Operator• Control Room Operator• 1st Line Supervisor
Usage
This qualification ensures the competence of those carrying out roles in the workplace, using observation and questioning as the principle assessment methods.
These qualifications form the backbone of competence standards within the downstream sector. Underpinning knowledge and performance requirements, they can be taken as full qualifications or broken down into separate units.
These qualifications underpin health and safety, whilst ensuring the value of good process safety is embedded into the organisation.
Three sets of standards underpin process safety across all levels from operators through to senior managers.NSAPI also provides validation for bespoke course development.
This is a national framework for continuous professional development, setting out the skills required to deliver Gold Standard performance in key job roles within the downstream sector. Enhancing core skills across four areas: Technical Competence, Functional and Behavioural, Business Improvement and Compliance.
There are a range of available vocational and academic qualifications, including:
So who sets the standards?
Qualifying good competence
54 January/February2013•TANK STORAGE
automation
Aluminum geodesic dome roofs are used to cover storage tanks up to 120 m diameters in the petroleum industry.
• Extreme Light-Weight Construction• Corrosion Resistance• Low Maintenance• Low Erection Cost• Minimum Emission
automation
TANK STORAGE •January/February2013 59
Terminal automation
supplier Toptech Systems has
partnered with Rotterdam-
based Argos Group and others
in Europe to pilot a platform
that is able to deliver terminal
lifting data to partners that do
business at these terminals.
For the last few years
Toptech has been working to
address the various ‘right-to-
lift’ controls suppliers want
to leverage to appropriately
allocate to their customers.
These controls include credit
and allocation management
as well as order-based loading.
The Toptech Data Services
(TDS) platform has been
used in the US for the past
15 years. It is a hosted data
exchange service between
terminal operators and
fuel suppliers. TDS services
include Bill-of-Lading (BOL)
data delivery as well as lifting
control toolsets designed
to give customers better
visibility and management
over their business.
First steps in Antwerp
In October 2010, Toptech
hosted a workshop at its
Antwerp facility to initiate
dialogue about the exchange
of data between European
petroleum trading partners.
This event was attended
by many of the industry’s
most influential players,
such as Argos (North
Sea Group), BP, Comfort
Energie, ExxonMobil, Kuwait
Petroleum, Lukoil, and Shell.
Shortly thereafter Toptech
became involved in the
Terminal Data Exchange
Standards (TDXS) initiative.
The goal of this initiative is
to formulate a global data
exchange standard that is
built on both US PIDX standards
and EU requirements.
The first phase of this effort
offers direct feeds of BOL data
from select terminal facilities
to TDS. These feeds will enable
Argos and other customers to
visualise real-time lifting data
from the non-owned terminals
in which they do business.
Recently, the completion
of the second phase of this
project now offers direct
data feeds to the Argos
TopHAT system. TopHAT,
another product of Toptech,
provides consolidated terminal
data from both the Argos
owned and non-owned
facilities. This consolidated
data is fed directly into
the Argos ERP system.
According to Martin Sissing
of Argos: ‘We are very pleased
to be among the first in Europe
to adopt a centralised data
clearinghouse approach to
share critical terminal data
with others in the supply chain.
As Argos continues to expand
our infrastructure, it will be
increasingly beneficial to
have the ability to provide our
customers with critical lifting
data in real-time. In addition,
we are able to receive data
from our own terminal network
as well as Outside Supply
Points (OSPs) in real-time
using a single interface our
TopHAT to our ERP system.’
The same benefits seen
by Argos can be enjoyed by
others in Europe. Any facility
using Toptech’s TMS inherently
supports TDS. In addition, most
automation systems today
support PIDX protocols which
are also supported by TDS.
Companies have valid data
exchange options available
today and the opportunity
to align with the global
standard when it is available.
The future is bright
With the European community
working towards the adoption
of a global standard,
new opportunities are
beckoning on the horizon.
Through TDS and other data
clearinghouses, companies
can simplify and improve
business processes while at
the same time exercising
tighter inventory controls.
The TDS platform has been
designed to work with the
established PIDX protocols
ensuring compatibility
with most major terminal
automation systems. For
added flexibility, TDS also
supports a proprietary data
exchange format via TMS, the
company’s own automation
solution which is used at over
800 facilities worldwide.
Rising fuel costs drive
the need for tighter supply
and inventory controls.
Furthermore, most companies
seek to reduce IT infrastructure
and complexity by turning to
hosted software platforms,
also referred to as ‘Software
as a Service’ (SaaS) to
perform critical functions
such as data management
and routing. Industry-wide
data clearinghouses are
designed to remedy for the
aforementioned challenges.
For more informationwww.toptech.com
Sometimes it takes a partnership
Argos is among the first in Europe to adopt a centralised data clearinghouse approach to share critical terminal data with others in the supply chain
tank foundations
Tank foundation being prepared
The foundation is one of
the most important parts of
a storage tank. However
most codes do not provide
detailed requirements and
guidance on foundation
design. Furthermore, codes
such as EEMUA and API do not
provide recommendations on
renovated tank foundations,
only for newly built tanks.
Certain types of foundation
such as concrete ringwalls
might be too expensive
and time consuming
for renovated tanks.
Although the subsoil
underneath a renovated
tank has experienced greater
load in the past, a systematic
design methodology still
has to be considered,
especially when the subsoil
conditions exhibit large
settlement and are sensitive to
variable loading. This is often
neglected due to insufficient
knowledge on foundation
and subsoil conditions.
Codes and standards
also provide little guidance
on this issue, raising difficulties
to practitioners who then
have to resort to engineering
judgment for repaired tank
foundations. In this case,
expertise in local subsoil
conditions and knowledge in
foundation engineering design
are of paramount importance.
This article is written based
on a case study of renovated
tanks with particular emphasis
on the foundation design of the
stone-ring with an inner sand
pad as the foundation type.
The tank type is a floating
roof with product liquid of less
than 70ºC. The tank diameter
ranges between 15-76m
with maximum short-term
foundation pressure of 175kPa.
Foundation design
A tank foundation must
be designed with a view
to satisfy the following
performance criteria:
- It is capable of supporting
the load of the tank
and its content – the
ultimate limit state (ULS)
- Without excessive
settlement that might
hinder structural integrity
– service limit state (SLS)
- Maintain the integrity
of the tank structure
throughout the life cycle
time of the tank.
In the case of tank repair,
the repaired foundation still
has to be designed to fulfil
the above criteria. Particular
attention should be paid to
ensure the ULS of a renovated
tank foundation remains
within an acceptable range
according to what is stipulated
in the standards. However,
the available standard only
provides the required factor
of safety (FoS) of newly built
tanks, which is obviously the
requirement designated for
original subsoil conditions.
If the tank previously
performed satisfactorily over
an acceptable period, the FoS
pertaining to that period may
be used as a benchmark to
assess stability requirements of
the repaired foundation. At any
rate, the repaired foundation
should take into account:
(1) possible settlement due
to the additional load as a
consequence of new design
geometry, new
materials or
contents, and (2)
the tank’s lifetime
(lifetime for the
next operational
period). These
requirements
should be
emphasised
where subsoil
conditions
promote large total and
differential settlements.
ULS
Global and local analyses have
to be performed to assess all
possible failure patterns of the
renovated tank foundation by
modelling the tank foundation,
paying particular attention to
the edge of the tank. Those
analyses have to be performed
taking into account: (1) specific
and critical load cases, and (2)
the quality of the repair works.
In the case of tank
renovation, the stress history of
the subsoil has been influenced
by the previous foundation
system and loading conditions.
Specific attention must be
paid to the evolution of soil
properties resulting from the
previous consolidation and
settlement occurring during
the first phase of loading.
Therefore, three major load
cases have to be considered
to reflect the stress history
of the subsoil: (1) load case
when the tank was initially built
(load case A), (2) at the end
of the operational period just
before the tank was emptied
to be repaired (load case B),
and (3) with the renovated
foundation (load case C).
The FoS for load case
C should preferably not be
lower than any of the FoS for
other load cases to maintain
compatibility of design
requirements with those
observed during the tank’s first
satisfactory operational period.
If this is not the case then the
tank owner should be informed
where a decision and possibly
60 January/February2013•TANK STORAGE
Renovated tank foundations– design and safety considerations
tank foundations
counter measures against the
low FoS after renovation (load
case C) should be taken.
An additional critical load
case has to be considered
when the tank is lowered onto
the renovated foundation,
since local failure around the
tank edge may be induced as
a consequence of eccentric
loading of the tank shell weight.
In this case, construction
details around the edge and
quality of repair works are of
paramount importance.
The construction details
around the edge might include
the foundation thickness, the
foundation shoulder width, the
quality of the repair work and
the type of material around
the edge. The presence of
sand-asphalt layer, and the
related drip plate welded
perpendicularly to the outer
edge of the annular bottom
plate, must be considered.
SLS
Although the subsoil has
experienced a greater
load in the past, the issue of
additional settlements of the
renovated foundation under
extra materials has to be
explicitly considered. However,
a distinction should be made
between the settlement that
takes place uniformly and
gradually or unevenly.
Settlement that takes
place uniformly and gradually
does not cause stress to the
imposed tank structure as
explained in API Standard 653.
The magnitude of the uniform
settlement should be taken into
account in the final design of
the renovated foundation as to
maintain the foundation level
within the acceptable limit.
Uneven settlement
causes significant problems
to the tank structure as it
may introduce stresses on the
tank shell. This settlement is
observed by measuring shell
elevation along its perimeter
during hydrotest, repair phase
and operational period. API
Standard 653 provides detailed
explanation on assessing
various settlements to maintain
tank integrity. However, there
is no detailed guidance
as to what Percentage
Allowable Settlement (PAS)
can be tolerated right
after foundation repair.
For repair tank foundation
(renovated tank foundation),
specifying the PAS after
hydrotest is required, in the
authors’ opinion, (1) to allow
controlling foundation work, (2)
to enforce quality construction
work and (3) to allow for future
deformation during repaired
tank’s operational lifetime.
Case study
The case study involved five
selected tanks with tank
diameters of 44-61m giving
volumetric sizes ranging from
19,500m³ to 47,300m³. The
tanks were built in the 1950s.
Only one of the five tanks had
a fixed roof while the others
had a floating one – these
roof types were kept the
same after the tank repairs.
All the tanks were located
at the same area where
the subsoil conditions, in
descending order, consist
of: (1) relatively loose to
medium dense sand, (2) very
soft to soft peat and clay, (3)
medium dense to very dense
sand, and (4) stiff clay.
The lateral variability of the
subsoil is significant in this area
where the thickness of the soft
soil can vary from 1m to 10m,
while the depth of the top of
the weak layer ranges from 1m
to 5m. The first two layers are
considered as the governing
layers for the foundation design,
especially the depth and the
thickness of the weak layer.
Observations - ULS
In all the cases the FoS showed
a significant increase from
load case A to load case B
due to the increase of the
undrained shear strength (Su)
as a result of consolidation
process taken place during the
previous operational phase.
On the contrary, the
addition of new foundation
materials reduces the FoS
due to additional stress
concentrations on the weaker
soil. Most of the slip surfaces
reach the base of this layer and
Factor of Safety evaluated for the five tanks
Failure pattern with thick very soft to soft clay
Failure pattern with thin very soft to soft clay
TANK STORAGE •January/February2013 61
tank foundations
58 January/February2013•TANK STORAGE
the failure pattern evolves from
a pure edge shear mechanism
to a partially lateral squeezing
between the two sand layers,
sandwiching the clay layer
depending on the depth and
the thickness of the latter. This
emphasises the importance
of analysing renovated tank
foundations systematically by
taking into consideration the
stress history of the subsoil.
The local analyses showed
significant effects on the
required foundation dimensions
such as shoulder width and
the use of a drip-plate. For
a stone-ring foundation the
local FoS increases sharply
with the shoulder width in
the 0.5 to 1m range, and
then levels off beyond a
shoulder width of 1.5m.
Therefore, a minimum
foundation shoulder width of
1.5m was adopted. This complies
with the available standard
(EEMUA Publication 183), but it
is in variance with API Standard
650 which suggests a minimum
shoulder width of 0.9m.
It is understood that
the sand-asphalt placed
underneath the tank bottom
has no structural capacity.
However, it was observed that
the thin layer of sand-asphalt
might significantly influence
edge settlement especially
upon tank landing. The actual
sand-asphalt behaviour remains
uncertain because it depends
on several factors, especially
its viscosity under variable
loading (creep and fatigue).
In this study, the sand-
asphalt layer is characterised
as a geotechnical layer by
adopting a Mohr-Coulomb
geotechnical failure criterion.
Following a conservative
approach, the drip-plate was
shown to help confine the
sand-asphalt layer, thereby
reinforcing the foundation
against localised failure
around the edge of the tank.
However, the shear strength of
the sand-asphalt still governs
the stability around the edge
of the tank. Incorporating
a drip-plate into the design
increased the FoS by about
0.5m, conveniently providing
the required safety margin.
Observations - SLS
The global settlement analysis
was performed on the tank
to distinguish between the
short- and the long-term
settlement behaviours. Short-
term settlement reaches
the maximum value close
to the tank edge while
the long-term settlement
reaches the maximum value
at the centre of the tank.
Long-term settlement
is mainly governed by the
thickness and the depth of the
weak and compressible layer,
while the short-term settlement
is mainly governed by the
stiffness of the upper layers.
The maximum foreseeable
post-repair settlements have
been calculated at about
40cm at the shell location
against a maximum of about
70cm at the centre of the tank.
The settlement anticipated
at the shell has been added
to the recommended 60cm
foundation thickness to enforce
the required free board of
the tank periphery above the
average adjacent terrain.
Finally, permissible settlement
criteria for the three settlement
criteria defined by API Standard
653 (shell, edge and bulge
settlements) have been set
as 40% of the corresponding
maximum allowable settlement.
This criterion is related to
settlements measured after
a hydrotest. Those settlement
criteria were specified based
on: (1) observation of settlement
data, (2) feasibility, and (3)
discussions with the client.
For more information: This article was written by Prigiarto Yonatan and Nicolas Charue from Fugro GeoConsulting Belgium, www.fugro.be in cooperation with Alain Holeyman from GeOpinion, Belgium and Evert Martens, freelance EEMUA 159 and API653 assessor at Tanxperts, www.tanxperts.com, Netherlands.
This article focuses only on limited aspects which are considered vital for renovated tank design, leaving out details pertaining to the design.
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anzeige_halbe_Seite.indd 1 21.12.2012 10:14:10
True vapour pressure (TVP) is a physical
property pertaining to the potential of
a liquid to evaporate. TVP is a critical
parameter in the estimation of storage
tank emissions, and it is also used
to determine the applicability of air
regulations to a given storage tank.
When a regulated storage tank
contains a volatile organic liquid which
has a TVP greater than 11.1 pounds per
square inch absolute (psia), regulations
typically do not allow a floating roof
as a control option but rather require
the emissions to be routed to a vapour
control device. Accurate determination
of the TVP, then, is critical for determining
whether a floating roof is an acceptable
control option for a given storage tank.
This issue has become particularly
sensitive for the light crude oils that are
produced from shale oil plays, in that
traditional determination methods may
predict the TVP of these light crude oils to
occasionally exceed the 11.1 psia limit.
Storage tanks containing stabilised
crude oil are generally equipped with
floating roofs to control air emissions.
A floating roof covers the liquid
surface, thereby largely preventing
the evaporation that would otherwise
occur at a free liquid surface. Floating
roofs have been demonstrated to
achieve well upwards of 90% reduction
in storage tank emissions, as long
as the stored liquid is not boiling.
Floating roof storage tanks may
have a dome-shaped fixed roof,
a cone-shaped fixed roof, or no
fixed roof (i.e., open at the top).
Floating roof tank
A floating roof is deemed a pollution
prevention measure, in that it prevents
pollutants from being generated rather
than treating pollutants after they have
been generated. Pollution prevention is
generally preferable to vapour treatment,
in that vapour treatment involves a
system to capture and convey vapours
to a control device. The control device
requires energy to operate, and it may
produce secondary emissions as a
result of the vapour treatment process.
For example, if the vapour treatment
process is combustion, then the oxidation
of the organic vapours results in the
emission of combustion products such
as carbon monoxide, carbon dioxide,
nitrogen oxides and sulphur oxides. The
use of a pollution prevention measure
avoids the creation of these secondary
pollutants, and it saves the costs and
energy consumption associated with
operating a vapour control device.
The recent surge in crude oil
production in the US has focused on the
use of hydraulic fracturing to recover oil
and gas from shale plays, such as the
Eagle Ford in Texas, the Bakken in North
Dakota, and the Utica in Ohio. Liquids
produced from these shale plays tend
to be lighter and more volatile than
conventional crude oils. In fact, it is
somewhat arbitrary as to whether these
liquids should be characterised as crude
oil or condensate. For purposes of this
discussion, liquids from these shale plays
shall be referred to as light crude oil.
On the one hand, light crude oils
are advantageous as they are easier to
process than heavy crude oils. On the
other hand, some of these light crude
oils may have a maximum TVP that
approaches the limit for floating roofs of
11.1 psia under certain storage conditions.
TVP from RVP
The conventional method of predicting
the TVP of petroleum liquids is to
extrapolate the TVP from a measurement
of the Reid vapor pressure1 (RVP). RVP
is the vapour pressure measured under
specified laboratory conditions at 38˚C,
whereas TVP is the actual vapour pressure
of the liquid under the given storage
conditions. Thus, while RVP is always
Floating roofs have been demonstrated toachievewellupwardsof90%reduction in storage tank emissions, as long as the stored liquid is not boiling
roofs
TANK STORAGE •January/February2013 63
Is a floating roof enough for shale oil tanks?
64 January/February2013•TANK STORAGE
roofs
measured at 38˚C, TVP is determined
for the given storage temperature.
TVP is extrapolated from RVP by
means of correlations that are published
by both API2 and EPA3. The correlation
equations are used to calculate values
for vapour pressure constants A and
B that are then used in a relationship
based on the Clausius-Clapeyron
equation to predict TVP as a function
of temperature. This equation for
predicting TVP is presented as equation
1-24 in EPA’s AP-42 7.1 document:
PV = exp[A – B/(TLA + 459.67)]
where:
PV is the TVP (psia), and
TLA is the average temperature at the
liquid surface (degrees Rankine).
Values for A and B to be used
in this equation are determined
for crude oils from the equations
given in AP-42 7.1 Figure 7.1-16:
A = 12.82 – 0.9672 ln(RVP)
B = 7261 – 1216 ln(RVP)
The reference given in AP-42 for these
equations is Evaporative Loss From Fixed
Roof Tanks, Second Edition, Bulletin 2518,
American Petroleum Institute, Washington,
D.C., October 1991. This reference does
not give a source for these equations,
but similar equations are presented in
the parallel document Evaporative Loss
From External Floating-Roof Tanks, Third
Edition, API Publication 2517, American
Petroleum Institute, Washington, D.C.,
February 1989. API Publication 2517 is the
document cited in EPA regulations4 for the
methodology to determine TVP from RVP.
API Publication 2517, Third Edition, states
that these equations were derived from
a regression analysis of points read off a
nomograph, which is the same nomograph
presented in AP-42 7.1 Figure 7.1-13a. This
nomograph appears in the first edition
of API Bulletin 2518, dated June 1962,
but no source is indicated for it. Thus the
equations for extrapolating TVP from RVP
are derived from a nomograph of unknown
origin that dates back to at least 1962.
Problems with the RVP correlations
The validity of this nomograph has been
questioned from time to time. The California
Air Resources Board (CARB) developed
a correction factor for predicting TVP
from RVP5, on the basis that ‘an error
was discovered in the API nomograph
calculated values of TVP so that the RVP
was not equal to TVP at 38˚C as was
expected given the general definition of
RVP.’6 The CARB correction factor adjusts
the TVP curve such that it reasonably
matches the RVP value at 38˚C.
This CARB correction has not received
much attention outside of California,
perhaps because the adjustment is
relatively inconsequential for conventional
crude oils. AP-42 suggests that a typical RVP
for crude oil is 5 psi. The calculated TVP for
an RVP 5 crude oil at a storage temperature
of 15.5˚C would be 2.2 psia using AP-42, or
2.9 psia using the CARB-corrected value.
However, at higher values of RVP the
difference becomes quite dramatic. The
TVP at 15.5˚C for an RVP 12 crude oil is
9.6 psia using the AP-42 correlations, but
only 4.1 psia using the CARB corrections.
Thus the apparent inaccuracy of the AP-
42 nomographs becomes substantially
more significant for light crude oils
than it is for conventional crude oils.
Comparisons of TVP predictions for an RVP 12 crude oil
Temp (C) Reid AP-42 CARB (corrected)
5 6.9 2.3
10 8.2 3.1
15 9.6 4.1
21 11.2 5.4
27 13.0 7.2
32 14.9 9.4
38 12 17.1 12.2
It appears from Table 1 that the
overstatement of TVP from the AP-42
methodology would wrongly indicate
that an RVP 12 crude oil stored at 21˚C
exceeds the 11.1 psia cutoff for allowing
a floating roof, whereas the CARB
correction indicates the TVP to be only
5.4 psia. The overstatement of TVP by the
AP-42 methodology is thus a significant
issue for the storage of light crude oils.
ProblemswiththeASTMD2879alternative
EPA regulations specify, as an alternative
to the RVP method of ASTM D323, use of
ASTM D28797 to determine TVP. This method
does not involve correlation equations,
in that TVP is directly measured over a
range of temperature in order to establish
the TVP-temperature relationship. ASTM
D2879 has been found to give significantly
lower TVP values than those predicted
by the RVP methodology, but questions
have been raised concerning the validity
of ASTM D2879 for light crude oils.
In order to assure that the TVP measured
by ASTM D2879 excludes the contribution
of dissolved gases such as air, the test
method specifies that the sample shall be
‘degassed’ by ‘gentle boiling.’ In that the
relatively high TVP of these light crude oils is
due to the presence of light ends that may
readily boil, it would seem that the sample is
no longer characteristic of the light crude oil
after undergoing this degassing procedure.
Disproportionate loss of the light ends would
result in understating the TVP of the sample.
More work needed
EPA regulations specify determination of
the TVP for volatile organic liquids either
by measuring the RVP and then predicting
the TVP from correlations given in AP-42,
or by direct measurement of the TVP over
a range of temperatures in accordance
with ASTM D2879. The RVP method has
been shown to grossly overpredict the TVP
of light crude oils, and there is potential
for ASTM D2879 to underpredict the TVP
of light crude oils. There is, then, a need
for improved methodology to determine
the TVP of these light crude oils.
For more information: This article was written by Robert L. Ferry at the TGB Partnership. To hear more Ferry will be leading a Tanks Essentials Training course at this year’s LDAR/BWON/TANKS/FLARES (LBTF) Conference on 19-21 February at the Hyatt Regency in Austin, Texas.
1 ASTM D323 – 08, “Standard Test Method for Vapor Pressure of Petroleum Products (Reid Method),” ASTM International, West Conshohocken, PA.
2 American Petroleum Institute, Evaporative Loss Reference Information and Speciation Methodology, Manual of Petroleum Measurement Standards chapter 19.4, Third Edition, Washington, D.C., October 2012.
3 U.S. Environmental Protection Agency, 7.1 “Organic Liquid Storage Tanks,” in Compilation of Air Pollutant Emission Factors, USEPA Report No. AP-42, November 2006.
4 U.S. Environmental Protection Agency, “Standards of Performance for Volatile Organic Liquid Storage Vessels (including Petroleum Liquid Storage Vessels) for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984,” 40 CFR Part 60, Subpart Kb, §60.116b(e)(2)(i); also, the definition of maximum true vapor pressure in 40 CFR Part 63 Subpart G, §63.111.
5 State of California Air Resources Board, Technical Support Division, “Technical Guidance Document for the Emission Inventory Criteria and Guidelines Regulation for AB 2588 (Air Toxics “Hot Spots” Information and Assessment Act of 1987),” August 1989. http://www.arb.ca.gov/ab2588/tgd1989.pdf
6 Ibid., 103.
7 ASTM D2879 – 10, “Standard Test Method for Vapor Pressure Temperature Relationship and Initial Decomposition Temperature of Liquids by Isoteniscope,” ASTM International, West Conshohocken, PA.
Hear more about this topic at the upcoming LDAR/BWON/Tanks/Flares ConferenceFeb19-21stinAustin,TX
More information at www.lbtfconference.com or [email protected]
TANK STORAGE •January/February2013 61
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degassing
66 January/February2013•TANK STORAGE
Making the commitment
The three biggest issues
concerning tank degassing
are: safety, regulatory
compliance and price.
Safety clearly leads
that list, since refineries
and petrochemical plants
are some of the most
technically sophisticated
places on the planet. There
is a zero-tolerance policy
for mistakes and that is
the way it should be.
Price is always part of the
equation since no one has
money to burn; companies
that cannot offer degassing
services at a competitive price
simply will not get the job.
But what about the third
item: regulatory compliance?
As multi-service vendors try
to expand their product
lines with tank cleaning and
vacuum trucks, customers
need to take a closer look
at the compliance record
and experience level of
their potential vendors.
California, for example,
is crisscrossed by multiple air
quality management districts
that protect the health and
safety of area residents. If a
degassing vendor fails to meet
the letter of the law, these
districts will immediately issue
a Notice of Violation (NoV).
Fines and bad publicity are
the last things a facility wants,
and NoVs generate ill will from
the communities surrounding
a facility. Regulators use NoVs
to police the industry, and
they can levy substantial
fines against both the
offending vendor and the
company that hires them.
Air agencies use a
number of tools to confirm
compliance. One of these
tools is a ‘field audit’ that can
confirm actual combustion
chamber temperatures and
compare them with the
chart recorder’s data. Lower
combustion temperatures
(and lower vapour destruction
efficiency) may be allowed by
different districts or states. But
other degassing tasks require
meeting 760ºC to achieve
the specified results. Low
temperature combustion may
result in lower propane costs,
but compliance fines and bad
press are penalties for failing to
ensure that proper combustion
temperatures are used to meet
all regulatory requirements.
The moral of the story is simple:
since degassing is one of the
most dangerous and regulated
procedures in a refinery, it is
important for all vendors to
remain 100% committed to
compliance and safety.
Planning for proper
compliance also means
planning for things that can
go wrong. Air quality districts
and environmental agencies
throughout the US require
degassing operations to be
‘continuous until complete’.
Consider this language from
the Bay Area Air Quality
Management rules and
regulations: ‘If excessive
emissions resulting from the
breakdown of air pollution
abatement equipment or
operating equipment persist
until the end of a production
run or up to 24 hours,
whichever is sooner, a violation
of district regulations shall be
deemed to have occurred.’
Translation: if a thermal
oxidiser breaks down on a
degassing job, the vendor
better have another option
standing by or expect
being served an NoV.
Many plants maintain
their own ‘in house’ vapour
recovery units to handle
assignments such as ship
loading, truck loading, or
tank farm vapour recovery –
and most of these machines
are subject to the same
regulations that govern the
mobile units operated by
independent contractors.
But plants know their in-
house equipment may not
be suited for every job, or
they may not be available
because of scheduled
maintenance. In these
instances, it makes sense to
hire a mobile vendor to handle
a degassing job. But here’s the
catch: operators who pride
themselves on their safety
and operational efficiency
should do their homework and
check if their chosen vendor
shares their commitment to
superior performance.
For more information: This article was written by Chad Fernandes, operations manager for northern California and northwest at Envent, +1 (925) 270-9003 or [email protected]
Since degassing is one of the most dangerous and regulated procedures in a refinery, it’s important for all vendors to remain 100% dedicated to compliance and safety
The growth in environmental
legislation throughout the
world has garnered increasing
interest, or indeed in many
cases a legal requirement, in
the recovery of hydrocarbon
vapours (VOCs) from
storage or the transfer of
products from storage to
carrier and vice versa.
With the growth in the
use of vapour recovery
systems for an ever widening
range of VOC products and
applications, in ever growing
areas of the world, this article
provides an introduction
to some of the key facts
and terms commonly used;
covering typical applications,
the selection of equipment
and vapour recovery
technologies, the need for
accuracy when preparing
the design, achievable
emission rates, practical
recovery efficiencies and
recovered product issues,
such as absorbents to use
and the risks of product
cross contamination.
Vapour recovery system applications
Vapour recovery systems
are used in a number of
applications related with
either the storage of VOC
products or the transfer of
the product from storage
to the carrier or vice-versa,
whether a truck, rail wagon,
ship or barge. Typical products
for which vapour recovery
would be used include the
following (and combinations
of): petrol, diesel, intermediate
products such as naphtha
and condensates, finished
chemicals such as benzene,
toluene and xylenes,
and there has also been
increasingly significant growth
in crude oil applications.
There are a number of
vapour recovery processes
available with proven track
records, each tending to
have its own place in the
market for a particular
range of applications.
Activated carbon adsorption/vacuum regeneration (CVA): In most circumstances the
CVA technology is considered
to be the best available
technology (BAT) for most
applications. The technology
is widely used throughout the
world, across a wide range
of loading operations, from
the smallest of systems, for
example where a single truck
loading spot is used, to the
largest systems in the world.
Two of the three largest
vapour recovery systems in
the world, supplied by oil
and gas equipment supplier
Aker Solutions, use the CVA
technology, with design
vapours flows ranging from
36,000m3/hr up to 45,000m3/hr.
The activated carbon
is used to strip and adsorb
the VOCs from the vapour
stream. Vacuum pumps
are used to regenerate the
activated carbon, stripping
the adsorbed hydrocarbons
from the activated carbon,
the recovered VOCs in most
cases being re-absorbed into
an absorbent stream, usually
the product being loaded/
transferred. Options are
available where an absorbent
is not readily available.
The technology can
operate across a wide
operational turn ratio of 0 to
100% of design. In addition,
operating at ambient
temperatures and low
pressures, the technology
is considered to be safe
which, together with its ability
to attain very low emission
requirements, lead to the BAT
label. Emissions limits readily
attainable range from 35g/
Nm3 to <150mg/Nm3 (97% to
99.9%+ recovery efficiencies).
Lower vent emissions are
feasible although these
requirements may require
some degree of specialist
design and in some cases
a second stage system. It
should be noted that for
products such as benzene
emissions as low as 10mg/
Nm3 are readily achievable.
Absorption technologies: These
include direct absorption,
in which the vapour stream
is directly contacted in an
absorber column with an
absorbent. The process
Vapour recoVery: a glossary of terms
Cold liquid absorption (CLA) vapour recovery system
vapour recovery
TANK STORAGE •January/February2013 67
may require cooling of the
absorbent or operation at
pressure or a combination
of both, dependent on
the equilibrium conditions
between the vapour
stream and the available
absorbent. The technology is
infrequently used; one of the
greatest drawbacks being
its inability to readily meet,
in many cases, the emission
requirements of several
environmental authorities.
However, there remains
a place in the market
for the technology. Two
recent examples where
there were good reasons
to utilise absorption are two
crude oil systems in marine
loading applications.
The first of these two
systems, operated in Norway,
is the third of the three
largest VRUs in the world
referred to above, with a
total inlet vapour flow rate
of 24,000m3/hr. In this case
the system adopted was a
cold liquid absorption (CLA)
process where space was
a premium on the three
jetties. An absorber was
located at each of the jetties,
the absorbent used being
regenerated/recovered in
a common plant on shore.
The second of the two
applications was a simple
pressurised absorption system,
for which the inlet vapour
conditions combined with the
operating parameters suited
the required emissions. The
primary reason for adoption
of the technology was plot
space and weight, the systems
being in service offshore.
Membrane: Membrane
separation technologies are
also available and used in
vapour recovery applications.
Membrane systems do not
offer the same degree of
operational flexibility as
the activated carbon CVA
systems, often requiring
large vapour holders to be
installed in order to operate
satisfactorily, where constant
vapours flows are not a feature
of the vapour inlet conditions.
For the larger applications
such as marine loading
operations, high power
requirements will often be a
limiting factor for the systems.
Membrane vapour
recovery systems however,
may be a preferred
technology selection for
some chemical VOCs,
which may not be best
suited for use with activated
carbon CVA systems.
Truck Loading: Truck loading
applications for vapour
recovery by far represent the
largest installed base, with
activated carbon CVA forming
the greatest proportion
of technologies used.
Within the EU and the
US long standing specific
emission control legislation
stands, covering the control
of hydrocarbon emissions
for the loading of petrol into
trucks. Emission control limits
and recovery efficiencies tend
to be very good with 35g/
Nm3 to 150mg/Nm3 emissions
expectations (97% to 99.9%+
recovery efficiencies) being
usual requirements. Installed
systems play a significant role
in the reduction of product
losses at the terminals where
used. Payback periods from
the installation of a vapour
recovery system vary,
depending on the bonded
status of the terminal, but
typically periods of less than
one to two years are feasible,
based on the value of the
product recovered that would
have been otherwise lost and
recoverable duty payments,
where this is applicable.
The systems are used in
either loading rack operations
or a balanced vapour system.
For a system in which the
vapours are recovered directly
from the loading racks, the
applications usually arise at
terminals where the product
storage tanks are fitted with
internal floating roofs (IFRs).
A balanced vapour system
is one where the vapour
piping from the loading racks
and the storage tank vents
are manifolded together,
the tanks being of fixed
roof construction. Vapours
displaced during the filling of
the trucks flow back into the
storage tanks as a result of the
product withdrawal during
loading. The vapour recovery
unit is thus designed to handle
only the vapour flows arising
from vapours displaced from
the storage tanks, when being
filled, and the vapour growth
effects from either filling of
the trucks or thermal growth
effects in the storage tanks.
The term ‘loading profile’
is regularly used in the world
of vapour recovery. A loading
profile is the resulting analysis
of how the vapour flow may FSO pressurised absorption VRUs installed
Pressurised absorption VRU system
vapour recovery
68 January/February2013•TANK STORAGE
Cold liquid absorption vapour recovery system
vapour recovery
TANK STORAGE •January/February2013 69
vary to a VRU over the course
of a day or loading period and
includes inlet hydrocarbon
concentrations considerations,
in addition to the vapour flows
to the VRU. In marine and tank
filling applications vapour flows
are relatively straightforward
rates, however, for truck
loading operations where
the vapours are recovered
directly back to the VRU,
loading profiles tend to be
somewhat more complex.
To ensure that the vapour
recovery unit is correctly
sized for the application, it
is essential that the loading
profile is correctly determined.
Over sizing would result in
a VRU that has excessive
power requirements, whereas
an undersised VRU runs a
significant risk of: i) higher
emissions limits than permitted,
and/or ii) limiting the loading
operations at the terminal.
In many cases the terminal
operations staff are fully aware
of the loading patterns at
their terminal, in which case a
good loading profile can be
developed. Where this data
is not readily available, at for
example a new build terminal,
there are a number of key
factors that can be used to
develop a good non-limiting
profile and correctly sized
VRU. These would include:
• Number of loading
spots that can be
used simultaneously
• Number of loading arms
that can be simultaneously
used per loading spot
• Maximum liquid flow
rate per loading arm
• Maximum size of the trucks
loaded at the terminal.
Vapour hydrocarbon
concentrations tend to vary
significantly for truck loading
operations, associated
with varying volumes of the
different products loaded,
i.e. petrol versus diesel.
Together,with the loading
profile flow rates, these
parameters can be utilised to
develop very cost effective
vapour recovery systems.
The varying nature of
the vapour stream to the
VRU can also be effectively
utilised to provide the
systems with energy saving
modes of operating the
vapour recovery system.
There are a number of
energy saving modes for
operating a vapour recovery
unit. These include systems
that measure/determine the
volume of product loaded
at the loading racks, starting
the VRU when a volume of
product equivalent to the
design vapour load of a
carbon bed has been loaded.
These volume loaded based
energy saving operating
modes rely on a number of
assumptions, such as the
vapour stream is always a
fully saturated petrol vapour.
Naturally this is not commonly
the case; frequently terminals
load a large proportion
of diesel or other distillate
based fuels. The ambient and
product temperatures also
vary and have a significant
impact of the inlet vapour
concentration flowing to
the VRU. A volume loaded
based energy saving mode of
operation can be improved
on through the use of a vent
hydrocarbon analyser control
scheme. The vent analyser
control system (VACS), when
used as the primary mode of
operation, can save between
40 and 50% of the energy used
where systems are not used.
The VACS system is
more successful than
other forms of energy
saving systems in that
it not only accounts for
variances in not just the
vapour flow to the unit,
but also compensates for
the following situations:
• Variable inlet vapour
concentrations,
as a result of :
- Variable volumes
of petrol/distillate
loading at the
loading racks
- Levels of
switch loading
occurring at the
loading racks
- Variable ambient
temperatures having
a direct impact on the
HC concentration
- Seasonal changes
in the RVP of the
products loaded
• Actual operating
performance of the
carbon bed and the
unit. The unit might not
be operating optimally –
for example, a leak in a
carbon bed regeneration
valve would prevent
the carbon from fully
regenerating impacting on
the VRUs performance.
Rail wagon loading: In many
ways rail wagon loading
is similar to truck loading,
although it is uncommon
for rail wagon loading to
be included in a balanced
vapour system. There tends
to be two common types of
loading utilised: the loading
method utilised impacting the
development of the loading
profile, and the resulting design
of the vapour recovery unit.
On Spot rail loading
systems are commonly used. In
these systems the rail wagons
are moved into place and
loaded, usually one wagon
load at relatively high flows.
Times vary but between three
and four wagons can be
loaded per hour. It is often
found that an On Spot loading
system will support two or more
rail tracks/trains simultaneously.
For these loading systems the
VRU loading profile closely
follows the development
processes used for a
truck loading system.
Other rail loading systems
connect up a number of
rail wagons, loading these
simultaneously. The loading
rates, on a per wagon basis,
tend to be somewhat lower
than for On Spot loading
systems, resulting in longer
uninterrupted loading periods.
In these applications the
loading profiles mimic more
closely those seen in ship
or tank filling applications,
where flows tend to persist at
constant rates for long periods
of time. As with truck loading
applications, the resulting
vapour recovery system for the
two types loading methods will
often result in very differently
sized vapour recovery units.
Ship loading applications: Vapour recovery systems have
been used in bulk petrol ship
loading applications for many
years. The products in which
vapour recovery systems are
utilised recently have widened
to include, most prominently,
products such as crude oil.
In addition the flow rates to
be handled are increasing,
with flows of between
10,000m3/hr and 20,000m3/hr
becoming common requests.
Marine loading vapour
Typical ship loading profile
A typical indication of how the loading profile for a ship/marine loading application may vary throughout a load
vapour recovery
70 January/February2013•TANK STORAGE
recovery units adopt a
continuous duty loading
profile approach in their
design, that is the flows,
although high, tend to be
steady and continuous for
many hours. However, this
does not detract from the
complexities of understanding
the design. Naturally there
are many challenges in the
construction of large complex
vapour recovery systems. The
most critical point is, however,
understanding the design basis
to be used. Marine loading
operations give rise to high
vapour growth rates, with a
potentially large impact on
the hydraulic design of the
entire vapour recovery system
and stratified hydrocarbon
concentrations in the vessels’
holds, leading to wide ranging
concentrations to from
very lean concentrations
at the start of the loading
operation to fully saturated
vapours at the end.
A detailed knowledge
and the ability to accurately
simulate the loading operation
are essential to accurately
designing a marine vapour
recovery system. As products
become more complex, as
with crude oil, it is not sufficient
to make assumptions about
any aspect of the process
design requirements.
Tankfilling/tankbreathing:The
design of a vapour recovery
system associated with tank
storage, as with ship loading
systems, requires a good
degree of understanding
of the mechanisms which
give rise to the development
of the out breathing of
vapours to the VRU.
Vapour development
can arise from a number of
mechanisms which need
to be accounted for in the
determination of the vapour
flow and VOC concentrations.
Unlike other vapour recovery
applications, it is often the
case that the hydrocarbon
concentrations in the vapour
phase from the tanks will
be fully saturated and will
often fully stress the VRU
design, in terms of flow
and hydrocarbon load.
Vapour out flows from
storage tanks will often result
from the following mechanisms:
1. Displacement emissions arise from the filling
of the tanks.
2. Breathing emissions arise from temperature
changes in the tank,
primarily an increase in
the temperature of the
vapour space, usually as
the tank warms up, for
example from overnight
temperatures to day
time temperatures.
3. Withdrawal emissions arise
from the development
of a vapour growth as
the vapour in the tank
saturates following product
having been withdrawn.
Air drawn in through the
tanks vents over time will
saturate. This causes an
increase in the vapour
air volume and hence
pressure, a vapour growth,
which in turn leads to an
emission from the tank.
Withdrawal emissions would
normally be expected to be
negligible, relative to the other
emission generating factors
and their interrelationships, i.e.
displacement and breathing
emissions. However, where
tanks stand partially empty
for more than a few days,
certainly VOC saturation levels
and withdrawal emission
rates will be impacted by
the dormancy of the tank.
Absorbent: Most vapour
recovery systems require a
circulated absorbent supply
into which the captured
VOCs are recovered. In most
instances the absorbent
would be the same product
as being loaded and usually
drawn from and returned to
one of the storage tanks. For
marine loading operations it is
common for the absorbent to
be drawn from and returned
to the ships’ loading line(s).
As with any aspect
of the vapour recovery
system design, design of the
absorber is critical to the
successful operation of the
VRU. A correctly designed
absorber requires a detailed
knowledge of the vapour
inlet properties, in addition
to the absorbent properties,
to ensure the equilibrium
conditions in the absorber are
conducive to the recovery
of the hydrocarbons. An
incorrect design will result in
a failure of the absorber to
operate efficiently, which
would likely result in the failure
of the overall system to meet
the required emissions.
Options are also available
where absorbents are not
readily available, or where
concerns may occur with
product cross contamination.
The importance that should
be drawn from this is that,
although vapour recovery
packages may be similar,
each application is different
and understanding and
ensuring the design basis to be
correct is critical. It requires an
experienced understanding of
the products being handled,
the mechanisms that result
in the vapour formation
and their properties.
Schematic of absorbent supply options
Petrol marine loading CVA vapour recovery unit
Shipping components 4,000km is an everyday occurrence, butwhenitcomesto39highlyadvanced engineered marine loading arms – each one as big as three articulated lorries end to end and weighing almost 1,500 tonnes in total – there is a logistics challenge.
The arms will form an integral part of the $10 billion (€7.5 billion) expansion plan totherefinerythatisbeingcreated by Abu Dhabi Oil RefiningCompany(TAKREER).
With vast gas and oil reserves, Abu Dhabi has a distinct advantage in the petrochemical sector and as such, the expansion of TAKREER’sRuwaisRefineryinAbu Dhabi forms an integral partoftheoilrefiningindustryin the UAE. Located 240km from Abu Dhabi along the Persian Gulf Coast, the new refinerywillseeanincreasein production of 400,000 bpd when it becomes fully operational this year.
Withtherefineryconfigured
for petrochemical production, featuring a Residue Fluid Catalytic Cracker (RFCC) at its heart, this will lead to the production of high value polymer grade propylene, aswellastraditionalrefineryproducts such as LPG, naphtha, jet/kerosene, gasoil and diesel.
The task was to deliver the loading arms from its factory at Kirchhain in Germany to anoilrefineryonthePersianGulf Coast in the UAE.
The shipment, which took more than two years to complete, over 60,000 man hours going into its production, will eventually be placed on three seaport jetties that are currently under construction at Ruwais by main contractor GS Engineering and Construction.
The customer required 13 marine loading arms for each jetty ranging in diameter from 8-16”, weighting more than 40 tonnes and measuring 26m high.
These massive structures had to meet all international
regulatory requirements and standards with each loading arm incorporating advanced safety features combined with pantograph balanced link technology to provide stability and strength.
Following an initial shipment to Abu Dhabi in January 2012, the manufacturer Emco Wheaton completed what was to be one of the single biggest shipments of equipment, in terms of weight and value, in the company’s history on November2012whenthefinalloading arms we shipped.
‘In terms of the scale of what we were transporting from our production centre in Germany, this was a big shipment of 24 MLAs equivalenttoaround920tonnes of metal,’ says Brian Armitage, director of supply chain management.
Intotal,39MLAsweresplitinto three shipments over a 12 month period along with more than 20 containers holding
couplers, emergency release systems, electro-hydraulic controls and complete loading systems for the state-of-the-art jetty facility.
Emco Wheaton built the individual parts of the loading arms at different centres across Germany and Italy.
These then had to be moved from the production centres to Hamburg. This logistical juggling act included moving the parts at night which required special permits and coordination with the German highways agency and police authorities.
But it wasn’t just by road; the canal system in Germany was also used to transport the larger MLAs with three loaded on each barge. Upon arrival in Hamburg, heavy lifting equipment was used to safely load the equipment onto the ship. The overall operation ran smoothly and the ship, M/V Leopold Staff, sailed from Hamburg, heading for the Middle East on schedule.
Logistics soLution
for marine loading arms holds key to refinery expansion
Picture caption to come
loading
TANK STORAGE •January/February2013 71
secondary containment
Flint Hill Resources’ (FHR)
petrochemicals are used to
manufacture goods from
plastics to building products
to packaging materials;
and it produces about 9
billion pounds of building-
block chemicals annually.
These chemicals,
usually highly abrasive, are
regularly stored in tanks
and must use appropriate
lining to prevent leakage.
Tank owners typically defer
to using HDPE liners despite
understanding its limitations
(i.e. cannot handle high
temperatures, does not have
high chemical resistance and
does not provide dimensional
stability). Their preference
is due to a combination of
the product’s cost, a certain
level of chemical resistance
and its fairly competent
constructability. Historically,
it has been known as one of
the only options available.
The chemical resistance
of the HDPE liner, however, is
simply not sufficient to contain
benzene/reformate. As a result
of this and other problems that
occurred as a result of using
HDPE, FHR decided to conduct
a risk assessment. Use of liners
for these types of chemicals
is regulated and HDPE would
certainly have met them; but
after the assessment, corporate
due diligence dictated
the use of a better liner.
Not having a clear idea
of which company could
provide a liner that would
meet its requirements, FHR
turned to its tank maintenance
contractor, who suggested
their engineering consultant
contact EnviroCon Systems.
EnviroCon specialises in
the supply and installation
of geosynthetic liners for
environmental, industrial,
architectural, commercial
and agricultural uses. They
also provide a variety of
applications for primary and
secondary containment. Chris
Swires, principal at EnviroCon
Systems and who also served
as project manager in this task,
referred them to Cooley Group.
Rhode Island-based Cooley
Group is a global developer
and manufacturer of high-
performance, sustainable
engineered membranes. The
engineered membranes division
produces the polyvinylidene
fluoride-formulated
(PVDF) Coolshield liner.
This is generally used in
applications requiring the
highest purity, strength and
resistance to solvents, acids
and harsh chemicals. It is 100%
resistant to benzene (it is the
only flexible liner resistant to
it) and the only rollgood-type
PVDF liner on the market,
which allows it to survive the
installation procedure that most
other liners – whether resistant
to benzene or not – cannot.
Searching for a liner resistant to benzene
Detail extrusion-welding of Cooley Group’s Coolshield liner in tank sump
Existing (unlined) steel tank floor and sump
When Flint Hills Resources set out to refurbish a tank that would hold benzene/reformate, the company quickly realised it needed a secondary containment liner that was resistant to the chemical
72 January/February2013•TANK STORAGE
TANK STORAGE •January/February2013 73
secondary containment
Tank refurbishment
As tanks become older, the
tank bottoms age and, unless
they are refurbished, they can
eventually leak. When they
leak, there is a huge expense in
cleanup and, most likely, fines.
In March 2010 FHR started
a tank-bottom retrofit, where
a secondary containment
liner was to be installed over
an existing tank floor before
a new one was installed.
Stephen Siener, general
manager of Cooley’s
engineered membranes
division, explains: ‘FHR had
experienced an issue before
where a more conventional
HDPE liner failed in a similar
application, resulting in
substantial remediation
and cleanup costs.’
The Coolshield liner is a
flexible rollgood (not plate
stock), which means it is not
only easy to transport but also
easy to install on-site. Largely
due to this feature, FHR was
able to meet the schedule from
an installation and construction
standpoint. There were no issues
with mechanical damage,
which is typically the problem
when a liner with sufficiently
heavy resistance is used.
An unexpected discovery
was the ease in which the
Coolshield liner was installed in
the field. In addition to taking
about the same time to install
as HDPE, the material’s physical
properties also ensured it was
capable of withstanding all
the subsequent construction
activities performed adjacent
to it. ‘There was really no
downtime involved. The relative
ease of field installation was
a very important factor,’ says
Swires. ‘While many companies
make similar, very thin Teflon
or PVDF liners, they can’t
be welded in the field and
they lack important physical
properties like sufficient
abrasion resistance.’
Based on the success of
the first installation, as well as
Cooley’s technical guidance
and product support, FHR
specified the use of Coolshield
for its next series of similar
tank refurbishing projects.
Cost
Among the reasons HDPE has
historically been the liner of
choice is that it tends to be
the least expensive option that
can withstand the majority of
liner jobs. On the other hand,
while there are existing products
in the market that may meet
a high chemical resistance
requirement, most are far too
delicate for the demanding
installation procedure this type
of project entails. Stainless
steel, for example, is a high-
priced alternative and used to
be the next best option when
handling very harsh chemicals.
Coolshield is significantly less
expensive than using stainless
steel. The Cooley membrane
is also much faster to install.
‘In the long run, the
Coolshield membrane is
actually more economical
as it is far more resistant than
most other liners and can
withstand harsher conditions
than HDPE,’ says Ray Peebles,
global sales manager
for Cooley’s engineered
membranes division.
FHR found that no other
company offered a more
constructible geosynthetic liner
that matched Coolshield’s
chemical and high-temperature
resistance. ‘Cooley Group was
the only company able to
provide a geomembrane liner
resistant to benzene/reformate
that was durable enough to
be deployed and welded
in the field using industry-
standard welding and testing
techniques,’ explains Swires,
who managed the project.
Despite the higher cost
of the Coolshield material,
the savings from avoiding
remediation and cleanup
from a failed conventional
liner made these tank projects
more economically viable.
The chemistry
Cooley’s PVDF formulation
is a fluorinated, semi-
crystalline thermoplastic
polymer obtained by radical
polymerisation of vinylidene
fluoride, making Coolshield
among the most chemically
inert of all polymers. This is
a direct result of the unique
chemical structure of
fluoropolymers, which differs
significantly from the structure
of traditional polymers such
as polyethylene. The exclusive
extrusion-laminated, PVDF
resin coating on select
substrates provides high-
tensile strength and excellent
chemical resistance even
at high temperatures.
‘For any kind of project
where aggressive chemicals
or high temperatures are
involved, and applications
where liners had to be ruled out
as an option, the Coolshield
geomembrane liner can now
be used,’ says Peebles.
An added advantage
to PVDF is it has very high
temperature resistance
to intermittent as well as
continuous temperatures.
Coolshield has been used
as a pit liner due to both,
its chemical resistance and
also its ability to withstand
121°C continuously and 135°C
intermittently. ‘This is one of the
chief reasons it has been used
on several occasions in the oil
sands drilling applications in
northern Canada. During the
oil sand drilling, steam is used
to get the oil to flow and there
are waste products that could
possibly spill,’ adds Siener.
Coolshield is UV- and flame-
resistant, as well as resistant
to high abrasion and highly
aggressive chemicals.
For more information: This article was written by Stephen A. Siener, VP of Cooley Group’s engineered membranes division, www.cooleygroup.com
Calibrating fusion welder for Coolshield liner installation
EnviroCon Systems performing non-destructive spark test of Coolshield extrusion weld
Though it would be virtually impossible
to determine the exact number of
aboveground storage tanks that are
located at the bulk storage facilities
that dot the US landscape – the API puts
the number somewhere in the range
of 700,000 – it is safe to say that they
play a critical role in the storage and
transfer of any number of commodities.
Hand in hand with this legion of vertical
ASTs, which generally range in storage
capacity from 500 to 300,000 barrels,
or 21,000 to 12.6 million gallons, are the
vessels – be they ocean-going ship, barge,
railcar or truck – that are used to deliver
these commodities to, or take them
away from, the liquid-storage facility.
From the most basic building-block
chemical to the highest refined motor fuel,
all would have spent some time being
transferred into or out of a storage tank at
a bulk storage facility. That is millions and
millions of gallons of liquids, many of which
can be hazardous, that are constantly on
the move, and all of this transfer activity
creates myriad opportunities for unwanted
spills, leaks or loss of product containment.
Since the 1960s, ‘environmental
protection’ has been a catchphrase
used by individuals or groups that wish to
minimise the adverse effects that human
activity can have on the environment.
Protecting the environment and
optimising the health and safety of the
planet’s residents is an admirable goal,
and one that the bulk storage industry
embraces. Still, by its very nature, there
is always the chance that an amount of
product will be released while it is being
handled, especially when transferred
from a ship, barge, railcar or transport
truck to a storage tank, or vice versa.
With responsible business practices,
as well as increased regulatory and
environmental regulations, mandating
that the connections for the transfer of
industrial liquids into and out of liquid bulk
storage facilities be able to safely prevent
potentially harmful product releases, there
is a need for liquid handling equipment
that can help prevent costly environment-
or personnel-harming release incidents.
The challenge
With the sheer amount of industrial
liquids constantly in motion there are
any number of points in the supply chain
where things can go wrong. One constant
concern is that a pull-away incident
How to avoid breaking the supply chain
74 January/February2013•TANK STORAGE
OPW Engineered Systems developed the NTS-PU Series Safety Breakaway Couplings as an additional safety device to protect the vehicle and piping in the event of a pull-away incident
loading
loading
will occur during a transfer operation.
When a pull-away – which takes
place when a truck, railcar, barge or ship
leaves a docking site before the transfer
hoses are disconnected from it – occurs
the consequences for the facility itself,
plant personnel and the environment
can be catastrophic. In fact, the best
result that can be expected when a
pull-away incident occurs is damage to
the transport, piping, support structures or
access equipment. While that sounds bad,
it pales in comparison to the worst things
that can happen, including a severe
environmental release, fire and personal
injury (up to and including death).
The adverse effects associated
with a pull-away incident are not only
immediate, but can be far-reaching, not
to mention the cleanup costs that can be
incurred. In addition to actual litigation or
cleanup costs, another consideration is
the bad publicity and subsequent harm
to the bulk storage facility’s reputation
that can result from a high profile
environmental or personal injury incident.
The overriding challenge for the
producers, handlers and transporters
of industrial liquids is to do the best
they can to eliminate or minimise risks
in their operations. The only way to
do this is identify the best companies
and systems, ones that can deliver the
most effective and
reliable performance
in bulk liquid handling
operations.
The solution
A specialist in this area,
OPW, has launched
the NTS-PU Series Safety
Breakaway Coupling,
which has been
designed to protect
bulk storage facilities
and their product
transfer operations
by safely and reliably
preventing product
spills when a pull-away
incident occurs.
Should the transport
vessel pull away from
a transfer point while
the hose is still attached
separation will occur
courtesy of a simple
straight or angular pulling force on the
hose line. That is because the NTS-PU
coupling consists of two halves that are
each equipped with spring-loaded non-
return valves that are held together by
spring-loaded cams for rapid hookup.
When a pre-determined pulling force
is reached, separation will occur.
Upon separation, both spring-loaded
valves – which are open during product
transfer – will close, which prevents any
product spill or leakage from occurring
while simultaneously protecting the
environment, the loading station and any
personnel that may be in the vicinity.
Since OPW has designed the NTS-PU
coupling without shear pins, no destruction
or damage will occur to the coupling
during separation. This also means that
after depressurising and emptying the
hose, the coupling can be reassembled
without the need of any special tools or
spare parts. This operation also means that
it is easy for the operator to test and verify
that the system is operating properly.
OPW also offers the NTS-SZ Series Safety
Breakaway Coupling. The NTS-SZ model
features cable-release operation
that is designed to protect against
unintended liquid-transport pull-
aways. When a pull-away occurs,
the tensile force travels along the
cable, leaving the hose or loading
arm tension-free at all times. When
the pre-determined pull force is
reached, the couplings spring-
loaded valves shut both ends,
enabling separation to occur.
For more information: This article was written by Dave Morrow, product manager for OPW Engineered Systems, +1 (513) 305-2059 or [email protected]
In addition to transport loading applications, the NTS-PU Series Safety Breakaway Couplings (above) can be installed for railcar applications as well
The NTS-PU Series Safety Breakaway Couplings from OPW installed at a storage terminal loading application
TANK STORAGE •January/February2013 75
76 January/February2013•TANK STORAGE
A recent report from the Port
of Los Angeles (POLA) to
the city’s Board of Harbour
Commissioners says work is set
to start on over $100 million
(€77 million) in construction,
repair and upgrades to
marine oil terminals in order
to comply with California’s
Marine Oil Terminal Engineering
and Maintenance Standards
(MOTEMS) programme.
In fact projects accounting
for more than $1 billion in
construction are slated to
continue at POLA into 2013, as
the port strives to keep pace
with its rapidly expanding
international business. Many
of the oil terminals, however,
remain dated and ‘high risk’.
Statewide, more than half of the
marine oil terminals are 70-plus
years old, and POLA has some
of California’s oldest facilities.
In fact, six of the seven at
POLA were built between 1919
and 1923. The port’s ‘newest’
terminal dates back to 1938.
POLA serves the densest
population centre in North
America. With the neighbouring
Port of Long Beach it handles
60% of all waterborne imports
from Asia, a trade corridor
that continues to grow.
Los Angeles’ (LA) vast
collection of oil terminals,
natural gas storage tanks and
surrounding refineries make it
an important global trade and
distribution link. For instance,
Los Angeles International
Airport buys almost all of its
fuel from Vopak, the top liquid
bulk wholesaler at POLA, and
the terminal infrastructure
here plays a large role in
local bunker fuel needs.
Though officials say there
is no serious danger looming,
because of LA’s history of
earthquakes and pollution, the
port remains heavily scrutinised
and regulated. MOTEMS is
among the protocols and
laws oil terminals must adhere
to, becoming law in 2006. But
many terminals in the state,
and at the port specifically,
remain ‘high risk’ and have
not completed the process
of complying with MOTEMS.
The 25 October report from
POLA staff to the Board Of
Harbour Commissioners outlines
the MOTEMS Implementation
Strategy (MIS) estimated
to cost nearly $100 million
over the next three years.
But lease uncertainties with
terminal operators like Vopak,
the age of the marine oil
infrastructure at the port and
continued amendments to
the programme’s final rules
have made the situation more
pressing. There has been some
public outcry, especially among
neighbourhoods near the port,
that POLA’s marine terminals
rating of 4.1 out of 10 on a
MOTEMS compliance scale is a
‘disaster waiting to happen’.
For one, some of LA’s
oil terminals sit on wharves
supported by wooden pilings
– construction not used today
when berthed tankers are at
least 10 times heavier than
their predecessors from the
1920s. Some sections of the
docks are in such disrepair that
they are not in use. ‘There are
ways to reduce risk,’ says Don
Hermansson of the California
The Port of Los Angeles is a flurry of activity as pressure intensifies to upgrade and repair oil terminals, some of which have been labelled ‘high risk’ by California state officials
by Nicholas Zeman
Hig
H R
isk
upg
Ra
des
upgrade
upgrade
TANK STORAGE •January/February2013 77
State Lands Commission,
administrator of the MOTEMS
programme. ‘The risk of a spill
is not based on the terminals
themselves but on the amount
of oil on deck at a given time.
Installing segmented pipes with
check valves or incorporating
more advanced seismic
engineering can reduce risk.’
Complicated negotiations
California has become
notorious for regulatory
burdens including the
California Environmental
Quality Act, National
Environmental Policy Act and
the California Coastal Act,
which influence the conditions
and cost of construction
and repair projects.
Sandra Burkhart of the
Western State’s Petroluem
Association says that there
has been a lot of ‘angst’
with members over the costs
associated with MOTEMS
compliance: ‘There has been
a number of delays that
have added to the anxiety as
state officials quibbled over
the final rule of MOTEMS for
years. I’ve only been here
a year and I kept hearing
about MOTEMS, it just kept
popping up as something that
was going to be difficult.’
Leasing negotiations have
also been a problem. POLA
chief harbour engineer Tony
Gioiello says the port has
needed to revamp its facilities
and operations to remain
competitive in the realm of
international commerce, and
negotiations to finalise an MIS
are part of the overall growth
strategy: ‘Recently, the last $7.5
million has been approved for
one of the long projects that
has been on hiatus, 53 feet
of deepening for the main
navigational channels and
basins. The majority of it will be
done by the end of the year.
‘The ships are certainly
bigger, so we knew that we
needed to handle deeper
ships. We’re spending
almost $1 million per day
over the next three years
on construction, upgrading
and maintenance. We have
an aggressive strategy to
update our terminals, but
part of the problem has been
that we are at the end of
our lease agreements with
several of the operators.’
Vopak, which occupies
the leading fuel wholesaler
position here, supports several
crucial businesses in LA. At
Vopak, approximately 1.6
million barrels of 2. 4 million
barrel storage capacity
is dedicated to bunker
fuels which are used to
fuel container and other
large cargo ships in the San
Pedro Bay. It represents the
only large-scale bunker
storage facility there so
San Pedro Bay’s bunker
fuels market is dependent
on Vopak’s operations.
The port certainly does not
want to lose Vopak’s business,
but again lease negotiations
under MOTEMS have been
problematic. Vopak had
argued that the port’s MIS is
financially unfeasible. ‘Based
on its financial analysis, a
capital investment ranging
from $150 to $200 million
would require a storage rate
increase of 20-45%, but the
bunker fuels market will not
support such rate hikes,’
POLA says. ‘Understanding
these issues, Vopak has
stated it would not pursue
this proposed development
and would instead cease
operations in the Port when
its current lease expired.
‘Based on Vopak’s
considerable existing
investments in pipelines and
storage tanks outside of its
marine oil terminal, it is even
less likely a new operator
with no existing assets and no
contracted business could
be successful considering the
required investment to enter
the market,’ the port adds,
eventually conceding to
Vopak’s arguments. Vopak’s
alternative proposal, however,
costing nearly $300 million less
than the original plan, was
incorporated into POLA’s final
MOTEMS compliance strategy.
But some business has
been lost. In November,
Plains All American (PAA)
Pipeline, represented
by WSPA, announced its
determination not to proceed
with the development
of its Pier 400 project.
‘Since inheriting the Pier
400 project in connection
with the acquisition of Pacific
Energy Partners in late 2006,
we have invested significant
time and capital working
through the regulatory process
and negotiating with a variety
of potential customers, while
also re-engineering the
project to meet environmental
requirements and adapt
to the changing needs of
potential customers,’ PAA
says. ‘A number of factors
contributed to the uncertainty
with respect to financial returns
and the determination not
to proceed with the project,
including project delays,
the economic downturn,
regulatory and permitting
hurdles, a challenging refining
environment in California
and an industry shift in the
outlook for availability of
domestic crude oil.’
‘Though I don’t know the
specific monetary impact
to the industry, I have found
that any new regulation or
amendment, especially in
California, typically won’t
decrease the cost of doing
business. Therefore, though
we appreciate California
State Lands staff incorporating
WSPA’s comments into
the final MOTEMS rules,
this regulation is going to
have a negative impact on
industry,’ Burkhart says.
Closing the deal
Much of the cost associated
with the $100 million MIS is
for new tank construction
POLA believes, so there
is an opportunity for tank
builders to assist the port in
building out and updating
its storage infrastructure.
Tank cleaning and
maintenance, coatings and
anti-corrosion applications,
engineering services and
other items of MOTEMS will
all be addressed as Vopak,
Exxon Mobil and the POLA
upgrade their assets to bring
them into compliance.
The port has eight liquid
bulk facilities comprising a
total of 114 acres to handle
various types of commodities,
both for import and export.
MOTEMS is designed to reduce
the needs for the port’s capital
investment by consolidating
operations and reducing the
number of berths that need
to be upgraded for MOTEMS
compliance. The port currently
has the capacity to handle
over 124 million barrels per
year, but projected throughput
through 2025 is estimated
near 106 million gallons. That
means the port will invest
only in those berths that
are needed to support the
projected capacity. Under
the revised MIS, POLA plans to
invest $7.5 million each in four
berths at marine oil terminals.
Nevertheless, the port
made several concessions
to Vopak under its revised
MIS plan, mostly to allow
the company the flexibility
to handle and store various
petroleum products. California
Much of the cost associated with the $100 million MIS is for new tank construction, so there is an opportunity for tank builders to assist the port in building out and updating its storage infrastructure
upgrade
78 January/February2013•TANK STORAGE
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Energy Commission is
forecasting greater receipts of
waterborne ethanol volumes
and the potential of greater
exports of petrol grades that
cannot be utilised in the state.
As both of these commodities
have low flash points, and
are therefore dangerous, it is
anticipated that Vopak would
be limited in handling and
storing these commodities at
their existing marine facilities
due to hazardous footprint
overlap with the adjacent
public access recreational
areas. ‘This restriction would
be a significant competitive
limitation for Vopak, but
relocating would remove
the land use conflicts,’
said a POLA report to
the Los Angeles Board of
Harbour Commissioners.
In addition, the state made
concessions to the industry
at large. ‘We submitted
comments during the last
amendment cycle and we
pretty much got everything
we asked for,’ Burkhart says.
‘One area of concern was
stipulations that would have
made certain maintenance,
upgrades or repairs to a facility
change its classification. We
couldn’t have that happen.
Facilities that are classified as
‘new’ are much more heavily
regulated. Now, after years of
amendments, the final rules
were approved by the State
Land Commission (SLC) on
5 December, and are now
waiting for approval from the
building commission before it is
effective January 2014. ‘We’re
pleased with it,’ Burkhart says.
The bottom line for all
concerned is that these
terminals are fit for the
purpose for which they were
intended. ‘These terminals
feed the refineries and they
feed our appetite for oil, so
it’s important to improve them
to comply with MOTEMS,’
Hermansson says. ‘The
terminals are aging and some
of them are quite old, so they
need to be brought up to date
to lessen the risk to the public.
Also, you have to remember
that the tankers now hold up
to 1 million barrels and when
these terminals were built
tankers held 50,000 barrels.
‘We have to ensure the
mooring equipment and the
structures themselves are
capable of handling some
of these loads. They are also
more fully laden than they
have been in the past. No
one at the SLC is trying to
tell the port how to run its
business and no one would
attempt to do so. And I
don’t want to imply that the
port is not doing anything,’
Hermansson adds. ‘They are
engaged in a considerable
amount of construction and
rehabilitation. There are a
lot of improvements going
on but we want it to temper
expansion with the proper
standards and codes for
mooring, berthing, structure
and seismic events.
‘Despite the problems with
delays, we think everyone is
trying to do the right thing.
The leasing issues involved
have been difficult to resolve.
Ultimately, Vopak’s alternative
to the port’s MIS plan that
was incorporated to the
final proposal. They took
a look at what Vopak was
proposing and the two sides
came to an agreement,’
Hermansson concludes. ‘I
think they came up with a
strategy that is amenable to
both sides. This is good news
because there looks like now
there can be a deal.’
page header
TANK STORAGE •January/February2013 75
Loading systems that can go with the flow of progress and are ready when you are. That’s the value of OPW.
Fast. Fluid. Flexible.
As the global leader, OPW pioneered loading systems for railcars and tank trucks. We will design a loading system to meet your facility, vessel and volume needs. Top loaders to bottom loaders and everything in between, we’re fast, fluid and flexible so you can keep your terminals highly productive.
OPW Engineered Systems Endura™ Series Loading Armsets the industry standard in performance and cost-effective operation.
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Fax: +1 513 932 9845
ZERO HARM – Safeguarding Peopleand the Environment
opwes-tank-storage-fp-jan.indd 1 1/10/13 3:37 PM
page header
covering
all angleS:
76 January/February2013•TANK STORAGE
March 12
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March 13-15, 2013
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Orlando, Florida
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At NISTM 2013 independent and major terminal operators, manufacturers and suppliers
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pipeline, aviation, chemical, electric power generation, manufacturing, and the military.
March 12, 2013 8:30pm – 10:00pm
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March 13, 2013 8:15am – 5:30pm
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NATIONAL INSTITUTE FOR STORAGE TANK MANAGEMENTNISTM
Secondary containment at a
storage terminal is one thing,
proving that it is adequate
enough to comply with the
relevant API standard is
another.
A terminal
operator based
in Texas, US was faced
with this challenge with
an upcoming audit. The
problem was that site plans
did not exist for most of the
tanks and containments,
and what plans did exist
were unreliable, outdated,
or simply did not contain
any relevant information.
The owner wanted to get
as accurate a map as possible
without blowing the budget.
The volumetric calculations
would be used in conjunction
with other variables, such as
above-average rainfall and
tank areas and volumes,
to determine the actual
containment capacity of
each individual area.
Maintaining accuracy
during this task was
complicated by the existence
of past construction activities
within the confines of the
secondary containment
dikes throughout the storage
facility. Useful containment
volume had been displaced
by the added equipment,
pipe racks and supports,
supply and return piping,
as well as intermediate
fire-berms in some cases.
While all these items
are necessary for safety
and maximising each
tank’s efficiency, each item
occupies space and thus
displaces useful containment
volume. Volume displaced
by anything except the
tanks and containment
dikes themselves is referred
to herein as ‘deadwood’.
The terminal operator
approached civil engineering
and mapping firm Meridian
Associates to provide
topographic plans and
documentation for 100+ tanks
and its respective secondary
containment areas.
High-definition laser
scanning, commonly referred
to as scanning, is a method of
three-dimensional (3D) surface
documentation. The scans, in
this case study, were collected
using a Leica HDS C10 laser
scanner, a measurement
instrument that records the
distance to all visible surfaces
using a laser, recording the
data as points. The deadwood
calculations were a major
factor in the decision to utilise
laser scanning to capture
the data, as the owner
maintained that the means
of measuring net volumetric
capacity should account
for the loss of secondary
containment volume by
deadwood, as well as loss by
the tanks and intermediate
fire-berms themselves.
It would also be most
beneficial if the high and low
points of the containment
areas were accounted for,
rather than simply calculating
volumes using an average
assumed floor elevation
which may not account
for subtle containment
volume gains and losses.
Project planning and execution
Alternative options for
collecting the data included
using land survey practices
with either a global
positioning unit (GPS) or a
conventional survey crew
utilising a total station. Using
this methodology would have
tasked the field crew with a
daunting prospect. After all,
covering
all angleS:
How one terminal combined GPS and laser scanning for a comprehensive insight into the facility’s containment capacity
Aerial isometric view of actual point cloud depicting congested containment area
Actual laser scan image from software
TANK STORAGE •January/February2013 81
82 January/February2013•TANK STORAGE
secondary containment
capturing the subtleties of
each containment dike, tank
and deadwood by area for
100+ tanks could have taken
the better part of a year.
In light of this, Meridian
decided to use laser scanning,
which provided many
competitive advantages,
including expediency,
accuracy and unrivaled
point density. Laser scanning
alone, however, did not
provide Meridian with sufficient
redundancy in its data.
It was therefore decided
to incorporate a hybrid
approach, using a survey-
grade GPS system to control
the site and laser scans, thus
tying all of the scan data onto
a known plant-coordinate
system. GPS also served as a
means of providing redundant
measurements and establishing
a site-wide control network
in the form of benchmarks
tied into the existing plant
coordinate system.
High-definition laser
scanning provided another
critical advantage by ensuring
the ability to determine the
single lowest point on any
given containment dike or
intermediate berm. As is the
case in many tank storage
facilities, a good percentage
of the individual tank
secondary containments were
designed to spill into adjacent
tank’s containment areas,
thus increasing the capacity
of each containment area.
The fact that this was an
intentional design feature
required Meridian to be able
to determine with accuracy
the location of the ‘lowest
point of top of containment
dike’, referred to herein as
the ‘spillover point’. The
location of this spillover point
was critical in validating that
a single tank’s secondary
containment volume may
include one or more adjacent
tank’s secondary containment
area, generously increasing
the containment capacity.
In the end, the hybrid
approach to data collection
was successful in capturing
the necessary data to satisfy
the contract and the owner,
as well as to ensure accuracy
of data. GPS provided the
owner with a thorough site
control network in the form of
benchmarks, which, while it
was not the primary intention of
the fieldwork, was a useful by-
product of the data capture
itself. GPS also provided
redundant measurements on
tank foundation elevations and
top of berm elevations, as well
as topographic measurements.
The laser scans provided
a wealth of data quickly and
effectively, simultaneously
maintaining the highest
possible level of accuracy.
It also ensured the survey
captured the nuances of the
containment areas, berms
and deadwood, helping to
provide exceptional precision
in volumetric calculations.
Project deliverables
Meridian was tasked with
providing the owner with
volumetric calculations. This
method of reporting that data
is subjective. Reporting the
data in a manner that made
sense to the client was a
challenge given the complexity
and size of the data set, and
the fact that the secondary
containment areas and tanks
were spread out over five sites,
some being 30 miles apart.
Meridian ultimately decided
on another hybrid approach,
providing the volumetric data
in the form of a spreadsheet,
and the planimetric and
topographic information in
the form of a CAD model
depicting the data as 3D solids.
While the volumetric data
was reported in spreadsheet
format with columns and rows
reporting tanks’ ID numbers,
gross containment volumes,
individual tank volumes,
deadwood volumes and
the secondary containment
volumes themselves,
reporting the planimetric
and topographic data
required the data to be made
3D rendered CAD model generated using laser scan point cloud data depicting deadwood
3D rendered CAD model generated using laser scan point cloud data
3D rendered CAD model generated using laser scan point cloud data
TANK STORAGE •January/February2013 83
secondary containment
compatible with the AutoCAD
2011 3D programme.
Laser scanning data by
its very nature and purpose
is dense. Thus, the data
contained vast amounts of
information that takes up a lot
of space. The total data set for
the 100+ tanks and secondary
containment areas was
approximately 150GB. While
the laser scan point cloud
data can be explored natively
in various CAD programmes,
it was not efficient in this case
to load all the data on every
machine being used by the
owner’s resident engineers.
It would be more efficient for
the cloud data to be stored
in a central location in the
owner’s system, accessed by
a select few persons, including
the project manager.
Central storage was
possible with the creation
of the CAD 3D solid surface
models which could be
easily shared among the
team. The cloud data was
used to generate 3D solids
depicting deadwood, tanks
and the containment surfaces
themselves. The 3D solid CAD
elements were used in the
calculation of displacement
volumes in the case of the
tanks and the deadwood,
and the surface solids were
used to calculate the gross
volumetric containment
volumes inside the designated
containment dikes.
Using this methodology,
no time was wasted as the
required 3D CAD models
helped to calculate
and report the required
volumetric information.
Also, since the scan data
recorded the subtleties of
the containment dikes and
floors of the containment
areas, the resultant 3D solid
surface model was very
efficient accounting for
the low and high points of
each containment area that
may have been overlooked
using another method.
Outcome of the project
The data for the 100+ tanks
was collected and reported
in about 10 weeks from
procurement to project
data delivery. Typically,
design engineering is the
first to benefit from this
comprehensive and accurate
set of data. In a 3D work flow,
models can be developed,
demolition planned, new
pipe routes scoped out and
utility service tie-ins planned,
all without stepping foot
back in the plant once the
data is collected. Using laser
scanning in a conventional
2D workflow, plans, elevations
and sections can be
developed from an almost
infinite number of positions.
A further benefit of laser
scanning is its use for design,
construction and trade
coordination as it provides
a complete and accurate
picture of the facility.
Providing accurate data
in a timely manner without
interfering with critical path
construction schedules is vital
to the efficient and cost-
effective execution of any
project and is the mainstay
of ‘scanning’ practice.
For more information: This article was written by Andrew P. Titcomb, Meridian Associates, +1 (281) 905-0396 www.meridian-3D.com
Beverly, MA Westborough, MA Cherry Hill, NJ Reidsville, NC Houston, TX Chandler, AZ [email protected] (800) 466-5505 Meridian-3D.com
Accuracy Matters
Making informed decisions about asset conditions is critical to your success and the safety of your facility and people. Meridian Associates’ 3D laser scanning, customized and proprietary data processing, 3D modeling and reporting services provide you with rich, highly detailed information on your assets. Our 3D laser scanning services for tank inspection and structural deformation analysis offer many benefits:
Don’t wait until a problem arises. Contact Meridian Associates to learn more.
Radial intensity map identifies areas of concern
Fast & Complete
Accurate to +/- 3mm
Rich in data point density – Millions of points/tank
Cost effective and high return on investment
LASER SCANNING MODELING ANALYSIS
page header
good news all round
80 January/February2013•TANK STORAGE
33RD ANNUALInternational Operating Conference & Trade Show
SAVE THE DATEJUNE 3-5, 2013
[email protected] | +1-703-875-2011 | www.ilta.org
Hilton Americas-HoustonGeorge R. Brown Convention CenterHOUSTON, TEXAS
124B_Ad_LNG_Save_4c_210x297_Spring.indd 1 1/8/13 12:52 PM
good news all round
The important take home from
last year’s Tank Storage Asia
Conference in Singapore is
that demand for capacity in the
region is very much on the up.
One reason for this is
that there is planned refining
capacity of 6.5 million barrels a
day. On top of this Asia is a net
importer of naphtha and fuel
oil and a net exporter of petrol,
diesel and kerosene, which
leads to product imbalances
that require storage.
Asia is at the forefront of
global oil demand growth, with
China a clear leader with strong
growth in diesel and petrol.
Onur Capan, manager
of downstream oil service at
Wood Mackenzie, added to
the positivity by saying that
there have been increasingly
attractive rental rates in
Singapore over the past few
years and these are likely to
remain robust in the longt-erm.
China: what everyone’s talking about
Taking a closer look at
that growth in China Karl
Sanders, senior consultant
at Downstream BV, gave his
opinions based on his travels
to virtually every maritime
location in China, including
Jiangsu, Ningbo, Guangzhou,
Dalian and Shanghai.
In the past oil storage was
the exclusive playground of
the Chinese majors. This may
change to a certain degree
with some independent
operators and traders
appearing. However for the
time it is still a very fragmented
business. The consolidation
that was expected has not yet
taken place and there is still a
clear separation between oil
and chemical terminals with
the foreign companies mainly
focusing on the latter so far.
Sanders highlighted
some important long-
term trends: that China
will continue to build more
refineries, grow consumption
in double digit figures and
improve strategic storage.
All this leads to a continued
boom for the storage sector,
although regulations are
becoming stricter after
several recent incidents.
Other challenges of
working in China include
a lack of trained operators
and employees, potential
corruption and the fact that
domestic companies often
outperform foreign operators.
North China is now
developing the fastest, but still
has a way to go and therefore
provides opportunities on a
larger scale than other areas.
Major developments
will be in oil and major new
development areas but
opportunities in secondary
chemical terminals
may be worthwhile.
Malaysia: still a hot topic
At last year Tank Storage Asia,
Malaysian marine construction
firm Benalec Holdings
announced a partnership with
project management company
Rotary Engineering to develop
an independent deepwater
storage terminal for oil products
in Tanjung Piai, southwest Johor.
This year Brian Mak,
Benalec business development
manager, returned to
update delegates on the
progress made so far.
The terminal has an initial
capacity of 1 million m3,
with subsequent phases to
increase capacity to 3 million
m3. This is expected to be
tank storage asia review
TANK STORAGE •January/February2013 85
Tank Storage Asia 2012:
Tank Storage Asia 2012:
tank storage asia review
operational in 2015-2016.
The company has also won
the contract to reclaim a total
3,485 acres of land in Tg Piai
over the next 10 to15 years.
Tanjung Piai is located
17km from Jurong Island,
and close to the major ports
of Johor, Tanjung Langsat,
Jurong and Keppel ports.
It also has natural water
depths of more than 20m,
minimising dredging costs, but
with a subsea that is conducive
for land reclamation.
It also has a vast amount
of land for future expansion,
as well as existing anchorage
area for over 1,000 vessels.
In addition to this, Benalec
has been awarded a project
to reclaim 1,760 acres in
Pengerang, also in Johor,
with the intention of setting
up a petrol and maritime
industrial park on the land
reclaimed. The construction
timeline for this is 10 years.
Phase one of the terminal
in Pengerang will be 150 acres
with a capacity of 1.3 million
m3 with seven berths, at a cost
of RMB1.7 billion (€400 million).
Pengerang is located
120km from Johor and
has an initial refining
capacity of 800,000 bpd.
Mak explained that
although there are a vast
amount of storage projects
planned at the moment, there
remains a large demand
for future capacity.
Reasons for this include
the fact that the International
Maritime Organisation (IMO)
restricts the use of VLCCs
for use as floating storage
capacity, regional demand
from China and India is on the
rise, and trading activating
driven by speculative
storage is also on the up.
Middle East: the one to watch
Behind China, the UAE is the
second largest emerging
storage market. Sanjeev
Sisaudia, group CEO for
local terminal operator Gulf
Petrochem FZC, highlighted
the enormous potential
for the storage market in
Fujairah, the world’s second
largest marine fuels hub.
Refined product demand
in the Middle East, for example,
is expected to grow by 1.8%
a year from 6.7 million bpd in
2010 to 10.4 million bpd in 2035.
To cater for this, additional
refining capacity in the Middle
East between 2012 and 2016 is
projected to be 1.8 million bpd.
Much of this will come
from grassroots projects. The
most likely developments are
Jubail &Yanbu refineries in
Saudi Arabia and Ruwais &
Fuajirah refinery in the UAE,
each adding 400,000 bpd.
Expansions of existing plants
in Karbala in Iraq, Isfahan
in Iran and Rabigh in Saudi
Arabia are also expected.
Saudi Aramco is
partnering with Sinopec for
the Yanbu refinery and with
Total for the Jubail project,
amounting to 400,000 bpd.
Saudi Arabia is planning
another refinery at Jazan
Industrial City (400,000 bpd)
and has revived an older
project for the expansion
of the Ras Tanura refinery
(550,000-950,000 bpd).
Iraq is in negotiations with
several investors about building
four new refineries with an initial
total capacity of 750,000 bpd.
The UAE is also announcing
plans to build a new refinery
in Fujairah (200,000 bpd)
and is opening of a 1.5
million bbl per day Abu
Dhabi crude oil pipeline.
Oman is considering
building a 230,000 bpd
refinery in Duqm and Qatar
is announcing projects in Ras
Laffan and Mesaieed. The latter
would be designed to process
expected additional barrels
from the Al-Shaheen field.
Updating delegates on
Gulf Petrochem’s own project,
Sisaudia explained that Phase I
is now complete. This consists of
412,000m3 storage capacity in
49 tanks ranging from 12,000-
40,000m3. He also added
that the company now has
plans to expand into Africa.
Elsewhere in Asia
Alexander Wood, CEO of
AWR Lloyd, has experience
in new project feasibility,
capital gaining and strategy
consulting in Thailand, Vietnam,
Cambodia and Indonesia, and
used this expeirience to shed
a little more light into some
of the other markets in Asia.
Thailand’s oil consumption
has increased by a factor of
nearly four times since the
1980s, from 200,000 bpd to
nearly 800,000 million bpd, with
the main refineries located
near Bangkok and on the
eastern seaboard in southeast
Thailand, he explained.
Thailand has six large
refineries with a capacity
of around 1.2 million bpd.
Around 4/5ths of Thailand’s
crude is still imported from
the Middle East, however.
The country’s oil
consumption is likely to increase
to around 1.6 million bpd by
2030 and, with domestic oil
production likely to fall over
that time, it will leave the
country increasingly exposed to
the risks of Middle Eastern crude
supply and product imports.
Strategic storage is one
area requiring additional
tankage in the coming
years as the country has
imposed a 90 day net
import strategic standard
by 2030, up from the current
36 days of consumption.
In Vietnam demand
for petroleum products is
expected to grow from
86 January/February2013•TANK STORAGE
1. China
2. UAE
3. India
4. Canada
5. Iran
6. Netherlands
7. France
8. Poland
9. Singapore
10. South Korea
The global top 10 emerging oil storage markets
tank storage asia review
16.5 million tonnes in 2012 to
39.3 million tonnes in 2025.
New refinery constructions
are still uncertain but, by
2030, the country could have
refining capacity of 40 million
tonnes per year or more.
Vietnam’s petroleum
consumption is likely to double
within the next two decades.
The country currently has
commercial storage capacity
of around 4 million m3,
equivalent to around 60 days
of consumption. However the
government plans to increase
stockpiling rules, so it will fall
mainly on industry (albeit mainly
state-owned) to achieve
strategic storage of over 70
days of consumption by 2025.
In Indonesia oil demand
stands at around 1.4 million bpd.
AWR Lloyd forecasts consumption
of around 2.2 million bd by 2030.
Current stock levels in
Indonesia are estimated at
around 20 days of consumption
but again the country’s
government is currently
formulating a strategic
reserves programme.
Coping with natural disasters
With Hurricane Sandy still
fresh in the memories of
those affected Brent Cooper,
terminal operations manager
at Z Energy, shared his
experiences of how the New
Zealand earthquakes also
impacted the storage sector.
Z Energy is the largest
supplier of fuel to the New
Zealand market. Due to
geographical isolation,
four companies, Z Energy,
Chevron, Mobil and BP, are
all involved in various JVs
which enables comingled
storage and shared use of
terminal and shipping assets.
Christchurch was rocked by
two powerful earthquakes in
2010 and 2011, causing major
infrastructural damage and
disruption to the fuel chain.
Damage to terminals included
foundation seals, stretched
bolts and tank settlement.
Refineryclosures?
Colin Allcard, MD of Channoil
Consulting, gave a rundown
of the refinery closures in
Europe and asked whether
a similar situation would
unfold across Asia.
Indications are, however,
that Asia Pacific will not have
excess capacity, so refineries’
margins should stay healthy.
Having said that, smaller
low conversion units could
still come under pressure.
With so much positivity
secreting from the event it is no
surprise that next year’s event has
already been announced, with
over 80% of this year’s exhibitors
already re-booked to return to
Singapore on 10-11 December
2013. For full details visit
www.tankstorageasia.com
TANK STORAGE •January/February2013 87
10
COMPANY LOCATION CDU CAPACITY KBPD CURRENT STATUS NEW OPERATOR
UNITED KINGDOM
BP Isle Of Grain Kent 150 Closed -new port
Llandarcy Wales 80 Closed
Grangemouth Scotland 180 Operating Ineos/Petrochina
Belfast N. Ireland 80 Closed
Shell Shellhaven Thames 180 Closed- New Container terminal
Teesport NE England 80 Closed- New Container terminal
Ardrossan Scotland Closed
Stanlow Mersey River 240 Operating Essar Energy
Esso Milford Haven Wales 100 Closed-dismantled
Chevron/Gulf Milford Haven Wales 210 Operating Valero
Murco Milford Haven Wales 120 Converting to terminal
Petroplus Teeside NE England 80 Closed- Oil terminal
Coryton Thames 220 Closed-Terminal
Closed 2080 kbpd Sold 1098 kbpd Converted 790 kbpd 11
COMPANY LOCATIONCDU
CAPACITY KBPD
CURRENT STATUS
FRANCE
BP Vernon Rouen 100 Closed dismantledDunkirk N Coast 80 Closed dismantledStrasbourg 80 Closed dismantled
Total Dunkirk N Coast 156 Closed -TerminalPetroplus Petit Couronne 162 BankruptLyondellBassel Berre Provence 105 Closed
BELGIUM
Petroplus Antwerp 108 Restarted by GunvorAntwerp 112 Closed Terminal
GERMANYShell Harburg Hamburg 110 Closed-TerminalPetroplus Ingoldstadt Bavaria 105 Closed-Gunvor possible restart
ITALYTamoil Cremona NE Italy 80 ClosedERG Total Civita Vecchia Rome 86 ClosedENI Gela Sicily 105 Closed for 12 monthsAPI Falconara E Coast 83 Closed for 12 monthsERG Total Priolo Sicily 360 80% sold to Lukoil
events
Tank Storage magazine (ISSN 1750-841X) is published six times a year (in January, March, May, July, September and November) by Horseshoe Media Ltd, Marshall House, 124 Middleton Road, Morden, Surrey, SM4 6RW, United Kingdom.The 2012 US Institutional subscription price is $240. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434. Periodical postage pending at Jamaica NY 11431.Subscription records are maintained at Horseshoe Media Ltd, Marshall House, 124 Middleton Road, Morden, Surrey, SM4 6RW, United Kingdom.Air Business Ltd is acting as our mailing agent.
advert index8 Aile 52
8 Aker Solutions 78
8 Auma 62
8 Bakken Crude Oil Logistics 55
8 BTE 21
8 Cashco 50
8 CB & I 7
8 CST Covers Front Cover, 31
8 EA Projects 23
8 Envent 24
8 Franklin Valve 27
8 HMT 42
8 ILTA 84
8 IMHOF 33
8 Ivens 15
8 Kanon IFC
8 L&J OBC
8 LBFT Conference 65
8 Lightning Master 25
8 Magnetrol 47
8 Meridian 83
8 Mesa 29
8 NISTM 80
8 Nordic Storage 11
8 Oiltanking 10
8 OPW 79
8 Oreco 13
8 Pentair 51
8 PFTAlexander 39
8 Protego 22
8 Rosen 16
8 SafeCut 19
8 StocExpo IBC
8 Vacono America 58
8 Zerust 14
FEBRUARY 2013n19-21stFebruaryLBTF Conference Hyatt Regency, Austin, TexasThe upcoming LBTF Conference will have a special focus on oil and gas, following the progression of the EPA enforcement. This will include current and pending rulemaking, permitting implications and increased regulatory scrutiny.
n 18-20th February International Petroleum Week Park Plaza Victoria, London, UK Over 2,000 visitors are expected to attend IP Week, which will feature conferences and seminars and an exhibition, in addition to an evening reception and annual dinner. Topics to be covered include finance and investment, technology and regional outlooks.
MARCH 2013n19-21stMarchStocExpoAntwerp Expo, Antwerp, Belgium The Storage Terminal Operators’ Conference and Exhibition (StocExpo), now in its ninth year, provides a platform for terminal operators, traders, regulators and equipment suppliers to do business. The 2012 event boasted more than 180 exhibitors from 29 countries across the world. A world-renowned conference will run alongside the three-day exhibition.
APRIL 2013n29-30thAprilTank Storage Forum MENADubai, UAEThe MENA 2013 conference will address the key issues facing tank storage professionals in the region. The forum is attended by over 250 experts from the Middle East and North Africa including oil and chemical companies, ports, tank terminal operators, integrators and supplies.
MAY 2013n 6-8th May8th Annual Bulk Liquid Storage Tanks ConferenceSouthern Sun Elangeni, Durban, South AfricaHighlighting the latest advances in technologies, processes and procedures for effective storage tank management. This year the conference is in the new location of Durban and will also feature a seminar on tank terminal management.
JUNE 2013n 3-5th JuneILTAHouston, TexasThe International Liquid Terminals Association aims to provide its members with information tools to facilitate regulatory compliance and improve operations, safety and environmental performance while at the same time offering opportunities for relationship building, networking and knowledge sharing.
n 5-7th June OGA – the 14th Asian Oil, Gas and Petrochemical Engineering Exhibition Kuala Lumpur Convention Centre, Malaysia OGA 2013 will showcase the latest technology, equipment and machinery in the fields of oil, gas and petrochemical engineering. The 2011 show saw the participation of 1,560 companies from 45 countries that attracted 20,705 trade visitors from 68 countries.
SEPTEMBER 2013n17-19thSeptemberTank Storage Forum LATAMSao Paulo, Brazil This event provides information and networking opportunities to industry professionals in the region. It will bring together over 250 oil and chemical companies, ports, tank terminal operators, integrators and suppliers to share best practice and address growth opportunities in the region.
OCTOBER 2013
n9-10thOctoberTank Storage Canada TELUS Convention Centre, CalgaryThis two-day conference and exhibition brings together terminal operators, traders, regulators and equipment suppliers from around the world.
DECEMBER 2013
n 10-11th DecemberTank Storage AsiaMax Atria, Singapore ExpoThis two-day conference and expo brings together terminal operators, traders, regulators and equipment suppliers. Technology on display at the exhibition includes everything relating to tank design, construction and maintenance, through to innovations in metering and measuring, pumps and valves, and automation and loading equipment.
88 January/February2013•TANK STORAGE
page header
TANK STORAGE •January/February2013 xx
For more information on exhibiting at StocExpo, please contact:
Sharé Mason: T: +44 (0)20 8843 8819 E: [email protected] Hall: T: +44 (0)20 8843 8817 E: [email protected]
www.stocexpo.com
Consisting of a three-day Conference and Exhibition, StocExpo provides the opportunity for terminal operators, traders, regulators as well as equipment suppliers to come together to network and do business in this vital region.
The exhibition provides an excellent sales and marketing platform for manufacturers and suppliers of everything from tank design, construction and maintenance, through to innovations in automation, certification, inspection, loading equipment, metering, measuring, pumps and a lot more.
The Conference will attract terminal and pipeline operators, as well as traders, analysts, regulators, renewable energy producers and technical expert. They will come together to discuss the key issues impacting the sector.
THE STORAGE TERMINAL OPERATORS’CONFERENCE & EXHIBITION
ANTwERp EXpO19 - 21 MARCH 2013
EUROPE’S LEADING INTERNATIONAL EVENT FOR THE TANK TERMINAL INDUSTRY
Official Publication
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xx January/February2013•TANK STORAGE
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5911 Butterfield RoadHillside, IL 60162 USA www.ljtechnologies.com tel: (708) 236-6000
fax: (708) [email protected]
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Tank Storage January 2013 Ad.indd 1 1/10/2013 9:19:50 AM