JUNE/JULY 17 Volume 13 Issue No.3
EXPANDING OILTANKING’S FOOTPRINT IN NORTH AMERICA Oiltanking is on the expansion track with a newly acquired terminal and a new facility in Texas
NEW STORAGE OPPORTUNITIES
Arc Logistics Partners explains how it is exploring new markets
REGIONAL FOCUS: THE AMERICAS
The voice of the storage terminal industry
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JUNE/JULY 17 VOLUME 13 ISSUE NO.3
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CONTENTS
Contents News TERMINAL NEWS 09 Europe 11
The Americas
20 Asia 21
Incident report
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30
Tank Storage Awards 24
Something to celebrate
Storage in the Americas
45
22
Tank terminal update: The Americas
30 Expanding Oiltanking’s footprint in North America 33
The Trump effect
41 Expanding into new storage opportunities 45 Unleashing America’s energy 49 Resurgent petroleum industry driving storage requirements
Market analysis 37
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Who’s steering the ship?
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CONTENTS
Contents
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Technical features 53 Technical news 62 Finite element analysis in cryogenic and refrigerated tank storage design 66 Optimising tank terminal operations: from insight to digitalisation 68 How to avoid building a new 10-year-old terminal 73 Plastic tanks: farewell to ‘fit and forget’ 76 The internet of tanks 79 The four P’s to successful coatings projects 83 The planner’s dilemma 87 The FARe approach in rim seal fires 90 Lightning protection for fiberglass reinforced plastic storage 93 Technical innovations in emission control 96 The fluid-handling advantages of screw pumps 98 Changing the future of tank cleaning 101 Protecting a storage terminal’s most valuable asset 104 The power of pumps to bring energy wells back to production 106 A stress-free approach to lifting
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Events 108 Industry excellence at the ILTA A preview of some of the exhibitors at this year’s ILTA exhibition at the Marriott Marquis Houston hotel in Houston.
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124 Getting creative with storage 127 A global storage hot spot 128 Advertisers’ index 129 Upcoming events JUNE/JULY 17 VOLUME 13 ISSUE NO.3
CONTENTS
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JUNE/JULY 17 VOLUME 13 ISSUE NO.3
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CONTRIBUTORS
Contributors JUNE/JULY 17 Volume 13 Issue No.3
JUNE/JULY 17 Volume 13 Issue No.3
EXPANDING OILTANKING’S FOOTPRINT IN NORTH AMERICA Oiltanking is on the expansion track with a newly acquired terminal and a new facility in Texas
NEW STORAGE OPPORTUNITIES
Arc Logistics Partners explains how it is exploring new markets
REGIONAL FOCUS: THE AMERICAS
The voice of the storage terminal industry
Front cover courtesy of HMT
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Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2017 US Institutional subscription prices is $243. 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 Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.
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CONTRIBUTORS
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COMMENT
Unleashing the energy
T
he tide seems to be turning and the winds of change are coming for global oil markets once more. While there has been a lot of scepticism surrounding the OPEC production cut, the results of this action seem to be paying dividends on reducing the global oil supply. Reports suggest that floating storage has declined by as much as a third in the first quarter of the year and top commodity traders are shedding their holdings in storage firms that profited from the prolonged oversupply. The likes of Glencore, Vitol and Gunvor have either completed or are looking to sell these holdings, with some analysts saying that they have ‘picked the right time to sell’. As speculation abounds that contango has already left the market, with several saying that backwardation will come by the second half of the year, the OPEC cartel are about to meet to discuss a possible extension of the output cuts. Both Saudi Arabia and Russia’s energy ministers have agreed there is a need to extend the cuts and suggest they should be extended until next March. However, when considering this market, anything is possible and there could still be a few surprises ahead. This issue of the magazine examines energy and storage markets in the Americas, and the US in particular seems to be flourishing at the moment thanks to President Trump’s pro-energy stance and his promise to ‘unleash energy’. In his first 100 days, President Trump has approved the controversial Keystone XL and Dakota Access pipelines and has
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increased access to federal areas for energy development. In fact, the API has said that the ‘right regulatory policies’ could see private investment exceed $1.3 trillion by 2035, which will be welcome news for many. Along with the lifting of export restrictions and the liberalisation of Mexico’s energy sector, the market is going from strength to strength as US domestic output continues to soar. Continued innovation and reduction of inefficiencies has made shale drillers remarkably resilient, driving down the breakeven price to around $40 per barrel from $80 in 2014. This edition is packed with analysis on this flourishing market, including a closer look at the Dakota Access Pipeline project, how a resurgent petroleum industry is driving the need for storage as well as what is next following the IMO decision last year. We also speak exclusively to Oiltanking North America about its growth plans in the region following the acquisition of a specialty chemical and petrochemical terminal and land to develop a new deepwater facility in Texas. Arc Logistics also shares more about new potential opportunities in the market and how it is focusing on organically growing its assets. The team will be attending the ILTA show so please come by our booth 164 to share your thoughts on this issue. We look forward to seeing many of you in Houston.
With best wishes, Jasmin
JUNE/JULY 17 VOLUME 13 ISSUE NO.3
COMMENT
Flying the flag 5 strategically located countries in Northern Europe 16 terminals 4.3 million cubic metres of storage 85+ years of experience 1st choice in bulk liquid and gas storage Inter Terminals Ltd +44 (0)1737 778108 Info@InterTerminals.com | www.InterTerminals.com Inter Terminals is owned by Inter Pipeline Ltd. www.interpipeline.com JUNE/JULY 17 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l CONTENTS
Terminal news All the latest terminal storage news from around the globe
10 HES International to build tank terminal in Rotterdam
13 Crude storage added to TransCanada’s Cushing terminal
20 Tank terminal project announced in Jurong Port
EUROPE
The americas
09 Oiltanking Antwerp Terminal doubles capacity
14 Sprague acquires two New York refined product terminals
Oiltanking acquires land for Texas tank terminal
NuStar buys Texas crude pipeline and storage assets
Stolthaven Terminals reports improved results
10 Decal completes study for construction of LNG import terminal
HES International to build tank terminal in Rotterdam
17 Enterprise announces ethylene storage and pipeline projects
Greenergy starts diesel and gasoil supply from Thames Oilport
New dock added to Stolthaven Houston terminal
Vopak and Exmar will not pursue FSRU transaction
Zenith forms strategic alliance with storage consulting business
The Americas 11 Blueknight looking to expand terminal network 12 Oiltanking acquires Galveston storage terminal
President Trump approves Keystone XL Pipeline project
18 Contract awarded for Vopak’s Panama storage terminal
Vopak to expand terminal in Brazilian port
19 Zenith Energy announces palm oil storage expansion in Colombia
Asia
13 PBF Logistics acquires Sunoco’s Ohio terminal
20 Puma reports 16% increase in sales volumes
Crude storage added to TransCanada’s Cushing terminal
Pengerang Terminal celebrates 1,000th vessel
American Midstream and JP Energy complete merger
Tank terminal project announced in Jurong Port
For the latest news and developments visit www.tankstoragemag.com 08
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l EUROPE
Oiltanking Antwerp Terminal doubles capacity
Stolthaven Terminals reports improved results
Oiltanking Antwerp Gas Terminal plans to double its storage capacity following an agreement with INEOS.
Stolthaven Terminals’ financial reports reflect improved results at its Houston and Singapore facilities.
The agreement with INEOS is for the storage and handling of butane, which will serve as feedstock for the INEOS cracker in Cologne. The facility will expand its capacity by almost 100%. As part of the agreement Oiltanking will make substantial investments including the construction of a 135,000 m3 fully refrigerated butane tank, which will be the largest in Europe. The butane cracker feedstock will arrive at the Antwerp terminal by seagoing vessel, up to very large gas carriers (VLGC) for intermediate storage. It will then be shipped by barges via the Rhine to the INEOS facility in Cologne. This storage and handling solution will provide INEOS increased flexibility and security of supply enabling the INEOS to optimise the related supply chain. The company’s acquisition of the Antwerp Gas Terminal in 2016 was part of its pro-active, strategic reaction to changing global requirements for energy and feedstocks.
The company reported an operating profit of $16.7 million, up from $14 million, which it says reflects improved results at Stolthaven Houston, Stolthaven Singapore and increased income from joint ventures. Its first quarter operating revenue was up from $60.4 million to $59.7 million and average leased capacity was unchanged, with utilisation of 91.1%. Average storage and throughput revenue was down slightly, however, total product handled increased by 7.1% in the quarter. Improved results at the company’s Houston terminal were drive by increased steam heating revenue due to winter weather conditions. Performance was up at its Singapore facility as a result of maintenance costs falling due to higher-than-usual maintenance activity in the fourth quarter.
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TERMINAL NEWS l EUROPE
Decal completes study for construction of LNG import terminal
Decal, in a joint venture with San Marco Petroli, has completed a feasibility study for the construction of a 32,000 m3 LNG import terminal in Porto Marghera, Italy. The terminal will be able to receive feeder ships up to 30,000 m3 and is designed for LNG distribution to be used as low emission truck fuel for communities not connected to the national gas network and for ship bunkering. The total capacity will be 32,000 m3 in a full containment 30,000 m3 atmospheric tank and two bullet horizontal pressure vessels of 1,000 m3 each. It will be equipped with a berth for LNG carrier ships from 7,500 to 30,000 m3 suitable for ships up to 65,000 m3, up to five loading lands for LNG tanker trucks and a berth for 1,000 m3 barges.
HES International to build tank terminal in Rotterdam
Greenergy starts diesel and gasoil supply from Thames Oilport Greenergy has commenced road-loading of diesel and heating oil at Thames Oilport. The opening of road loading facilities is another milestone in the regeneration of the former refinery into an import terminal capable of meeting growing fuel demand in the south east. The facility received its first shipments of diesel and opened for ship-in/ship-out storage. This meant the company could benefit from the contango market conditions. At year end the company had more than 250 million litres of diesel stored at the facility. Refurbishment at the site has included upgraded automated roadloading facility, new driver facilities, work on new additive systems and a new control system. The next regeneration phase will enable petrol storage and road supply.
HES plans to develop a terminal for the storage and transhipment of petroleum products and biofuels at Maasvlakte 1 in Rotterdam. BP, who owns BP Refinery Rotterdam, has committed to plans for pipeline connections between the refinery and the terminal. The facility will have 52 tanks with a capacity of 1.3 million m3. Additionally, the Port of Rotterdam Authority will invest in a quay wall of 1,100 metres to accommodate three large or five smaller sea-going vessels. There will be nine berths in the Hudson harbour for barges. The facility, the HES Hartel Tank Terminal, will be an independent storage terminal where customers can store and tranship liquid products. BP has signed a multi-year contract, which will increase its activities in Rotterdam. Clean petroleum products will be stored at the terminal, including diesel, gasoil and petrol. It will also be possible to blend products, add additives and homogenise cargoes at the terminal. The tanks will vary in size from 5,000 to 50,000 m3. A quay wall will be built to accommodate vessels ranging in size up to VLCCs with a draft of 21 meters. CEO Jan Vogel says: ‘With the development of this terminal, HES International demonstrates that it can serve the long-term needs of its customers. At the same time, we are realising our ambitious growth plans. Together with the expansions at our terminals, the new facility will strengthen our position as one of Europe’s most important companies in terms of the storage and transhipment of dry and liquid bulk products.’ The facility is due to be constructed in 2018 and 2019 and is expected to be ready by the end of 2019.
Vopak and Exmar will not pursue FSRU transaction Vopak and Exmar have announced they will no longer pursue a transaction over Exmar’s FSRU business. At the end of 2016 both companies announced that they reached a conditional agreement on the acquisition of Exmar’s participation in FSRU assets. As previously reported, the deal was subject to the consent and cooperation of multiple stakeholders and that the ultimate scope of the transaction was dependent on that process. Both companies said in a statement that after careful consideration, they have concluded that these requirements will not be met on the envisaged transaction and that as a result, the closing of the transaction will no longer be pursued.
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
Blueknight looking to expand terminal network
Blueknight Energy Partners is seeking to expand its terminalling networking following stronger operating margins across most of its business segments. CEO Mark Hurley says that due to the company’s solid 2016 results, it was able to make strategic investments in its asphalt terminalling services business segment and that it is working to complete its Oklahoma condensate project to better utilise its Oklahoma crude oil transportation and storage assets. The company reported its adjusted EBITDA as $69.8 million for 2016 compared to $70.1 million for the same period in 2015. For the three months until the end of December 2016 the company’s EBITDA was $17.1 million, compared to $14.1 million for the same period in 2015, an increase of 21%. Hurley says: ‘We were able to make strategic investments in our asphalt terminalling services business segment further strengthening our presence as a terminal-centric, infrastructure-focused company that can provide bulk storage, transportation and
terminalling services throughout the US.’ He adds that the company’s asphalt products terminalling business continues to perform exceptionally well, with operating margins excluding depreciation and amortilisation increasing by 18% from 2015 to 2016. ‘Our asphalt terminalling business is well positioned to take advantage of the increased infrastructure spending we expect to see in the future,’ he adds. ‘We continue to search for growth opportunities and are looking to expand our terminalling network. We will continue to look to develop additional organic crude oil opportunities both within and outside Oklahoma. We believe our business is well positioned for growth and we believe that our new partnership with Ergon will provide additional access to different opportunities and we are aggressively exploring those as we move forward into 2017.’
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TERMINAL NEWS l THE AMERICAS
Oiltanking acquires Galveston storage terminal
Oiltanking has acquired the Oiltanking Galveston County terminal following its land purchase for the development of a deepwater terminal facility. The terminal currently handles specialty chemicals and petrochemicals with 69,000 m3 of storage capacity. The facility is located to the northwest of the company’s existing Texas City marine terminal and has extensive pipelines connections. It has 78 tanks, five truck racks with loading and unloading capabilities and significant railcar spots for loading, unloading and storage. It is situated on more than 200 acres, allowing ample room for expansion opportunities. It has substantial room for rail, truck, pipeline and storage expansion along with the opportunity to become an industrial park. The company says in a statement that a key advantage of the facility is its close proximity and pipeline connection to its existing Texas City terminal. The company says: ‘Both acquisitions fit perfectly with the Oiltanking strategy to offer excellent terminal services in key petroleum and chemical markets in North America. The port of Texas City is home to a vast refinery market and several chemical companies. Its short sailing time to open water and uncongested marine traffic position makes the port a highly valuable player in the Houston market.’
President Trump approves Keystone XL Pipeline project The US Department of State has signed and issued a presidential permit to construct the Keystone XL Pipeline. The project represents an investment of more than $15 billion in liquids and natural gas projects, according to a statement by TransCanada. TransCanada will continue to engage key stakeholders and neighbours throughout Nebraska, Montana and South Dakota to obtain the necessary permits and approvals to advance the project. The company has confirmed that it has discontinued its claim under Chapter 11 of the North American Free Trade Agreement and will end its US Constitutional challenge. Russ Girling, TransCanada’s president and CEO, says: ‘This is a significant milestone for the Keystone XL project. ‘We greatly appreciate President Trump’s administration for reviewing and approving this important initiative and we look forward to working with them as we continue to invest in and strengthen North America’s energy infrastructure.’
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
PBF Logistics acquires Sunoco’s Ohio terminal
American Midstream and JP Energy complete merger
PBF Logistics has acquired Sunoco Logistics’ refined products terminal in Toledo, Ohio for $10 million (€9.1 million).
American Midstream Partners and JP Energy have successfully completed their previously announced merger.
The terminal comprises a 10-bay truck rack and more than 110,000 barrels of chemicals, clean product and additive storage capacity. It is located adjacent to PBF Energy’s Toledo refinery and is directly connected to and is currently supplied by the Toledo refinery. PBF Logistics’s CEO Tom Nimbley says: ‘We are pleased with our acquisition of the Toldeo Terminal, which is PBFX’s second third-party acquisition and third transaction completed this year. ‘We welcome the employees of the terminal to the PBFX family and look forward to maximising the potential of our newest asset.’
Following a meeting of JP Energy unitholders, where a majority of them voted in favour of the agreement, American Midstream is now a large, more diversified midstream business operating in leading North American Basin. Lynn Bourdon, president and CEO of American Midstream, says: ‘Through this merger, American Midstream will emerge as a stronger company with higher growth, new business opportunities and a stronger financial position. ‘This merger allows us to expand our service offerings from the well-head to the end user market. The combined company will have an enhanced growth strategy by offering customers a more comprehensive and competitive suite of services that enables us to capture incremental fee opportunities that strengthen margins and maximise returns to our unitholders.’
Crude storage added to TransCanada’s Cushing terminal TransCanada plans to add 6.2 million barrels of new crude oil storage at its Cushing terminal in Oklahoma. The new storage will be owned by M2 Infrastructure and operated by TransCanada. Under the terms of the memorandum of understanding, M2 has an option to build up to 20 million barrels of storage, which would be built in subsequent phases. The project and option to expand are subject to completion of definitive agreements between the parties as well as acquiring the required approvals and land rights. Construction of the crude storage is expected to start in late 2017. M2 will work with Matrix Global Holdings to sell storage capacity to its customers through on-line auctions for futures contracts and/or physical forward agreements. J. Robert Collings, Jr, co-founder and manager of M2 Infrastructure, says: ‘This project’s unique position in Cushing, combined with the innovative excellence of Matrix, should provide the lowest cost, highest throughput, most liquid and most connected storage solution in the midcontinent – eliminating costly limitations of alternative storage programmes.’
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l THE AMERICAS
Sprague acquires two New York refined product terminals
Oiltanking acquires land for Texas tank terminal
Sprague Resources plans to buy two refined product terminal assets on Long Island, New York, from Carbo Industries and Carbo Realty.
Oiltanking North America has purchased extra land to facilitate the development of a deepwater terminal in Texas.
The terminals are located in Inwood and Lawrence, and have a combined petrol, ethanol and distillate storage capacity of 157,000 barrels. The terminals are supplied primarily by pipeline and have the ability to accept product deliveries by barge and truck. Carbo provides the storage, blending and additive injection capabilities to serve major branded petrol marketers as well as unbranded petrol/distillate marketers focused on the New York City and Long Island markets. The deal is expected to cost $70 million, plus payments for inventory and other customary items. David Glendon, president and CEO of Sprague, says: ‘The Carbo facilities have long been an integral component of our distribution network and we are thrilled to convert our position from tenant to owner in this critical location, further solidifying our status as one of New York’s premier refined products terminal operators and marketers. ‘While the Carbo terminals’ total combined storage capacity will rank among the smallest in our network, their expected combined annual throughput will be higher than any single Sprague-owned facility.’ DEPA Fluid Level Control_ad_135x90_20170516.pdf 1 16.05.2017 16:11:22
The operator has acquired 89 hectares of waterfront and industrial land in Texas City, which will be used for the development of its Texas Independent Deepwater Expansion (TIDE) terminal. The initial phase of development will comprise the construction of a finger pier with two deepwater docks with up to 14 meters draft. The new terminal has ample ready-to-build land available to construct more than 1.6 million m3 of storage, pipeline interconnectivity and additional jetties for crude oil, petroleum and gas products in the Houston market. Once the first phase is complete, Oiltanking says that the terminal will form a viable export/import/blending hub alternative in the Houston market by ‘creating a premier logistics platform with significant flexibility and optionality’. The TIDE terminal is close to Oiltanking’s existing Texas City terminal, which offers 550,000 m3 of liquid petroleum products, renewables, chemicals and gas storage capacity.
NuStar buys Texas crude pipeline and storage assets brands you trust.
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NuStar Energy has completed the purchase of Navigator Energy Services, which includes crude oil transportation, pipeline gathering and storage assets in west Texas. The transaction for $1.475 billion comprises more than 500 miles of crude oil gathering and transportation pipelines with 92,000 barrels per day, ship-or-pay volume commitments, a pipeline gathering system with more than 200 connected producer tank batteries and one million barrels of crude oil storage capacity with 440,000 barrels contracted to third parties. President and CEO Bradley Barron says: ‘We believe these are the right assets, in the right place, at the right time for NuStar. ‘They also provide us with a strong growth platform that, when coupled with our Eagle Ford system, will solidify our presence in two of the most prolific basins in the US, which better positions us for distribution growth in the future.’
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Autonomous On/Off Switch The pressurized air supply can be automatically switched on or off depending on the fluid level, allowing independent operator-free pumping.
ATEX Zone 0 Environment The fluid level control in combination with full cast stainless steel pumps is certified for use in Zone 0* gas environments.
Extended Service Life Design in combination with 316L stainless steel delivers superior resistance to corrosive chemicals such as alkalines, acids and solvents, thus ensuring reduced maintenance and longer service life. *Zone 0 conform only in combination with the following Zone 0 diaphragms: DEPA Nopped E4 (size 80 only approved for electrically conductive fluids), EPDM, NBR, PTFE
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l THE AMERICAS
There are 4,612 storage tank terminal facilities in 161 countries worldwide, combining to create over 250 billion gallons of aboveground storage capacity (https://www.tankterminals. com/). After many years in the aboveground storage tank industry and involvement in countless projects, there is one thing that we have learned for certain: tanks leak when it is least expected and floating roofs will collapse. To avoid releases caused by issues like catastrophic bottom failures cracked welds around nozzles and floating roof failures, tanks need to be routinely taken out of service and inspected by a certified third-party. This is not only good industry practice, but today there are many local, state and federal agencies that regulate the inspection of aboveground storage tanks. The Tank Entry Supervisors must be highly qualified and certified for all project phases. The IQCIA TES program is the most highly respected certification in the world for Tank Entry Supervisors. The goal of this certification is to minimize the risks of confined space hazards and to improve the overall safety performance of tank maintenance operations. Quality tank cleaning contractors will have a certified IQCIA Tank Entry Supervisor onsite throughout the duration of each cleaning project.
Stephen L. Figura Office: (800) 807-8882 l Cell: (704) 740-5830 l Email: Sfigura@tankentrysupervisors.com 16
www.tankentrysupervisors.com
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
Enterprise announces ethylene storage and pipeline projects Enterprise Products Partners plans to further develop its ethylene infrastructure with storage and pipeline projects following supporting customer commitments. It will repurpose a large, high-capacity ethylene storage well at its Mont Belvieu, Texas complex. Once complete in the third quarter of 2015, the 5.3 million barrel cavern will be able to inject/withdraw ethylene at a rate of 2,000 barrels per hour. Additionally, the company is also building a 24-miles ethylene pipeline from Mont Belvieu to Bayport, Texas. It will have the potential to connect both producing and consuming sites south of the Houston Ship Channel to Mont Belvieu. The pipeline will be routed through Enterprise’s ethane export terminal at Morgan’s Point, which provides future flexibility should the company develop ethylene export capabilities at the Morgan’s Point marine terminal. R.B. Herrscher senior vice president, petrochemical for Enterprise’s general partner, says: ‘As US ethylene production capacity expands over the next three years, access to reliable logistics services will be needed, and Enterprise is ideally positioned to fill the gap. ‘These growth capital projects will expand our ethylene system to meet the growing needs of the petrochemical industry. These new storage and transportation assets will also complement our existing capabilities, giving us the foundation for extending our ethylene value chain even further.’
New dock added to Stolthaven Houston terminal
A new shop dock will be built at Stolthaven Houston which will increase access to the terminal and minimise waiting and turnaround times. The dock project, which will be capable of handling tankers and barges, is part of company-wide upgrades and expansions to its global network of 19 owned and joint-venture facilities. Construction of the dock is expected to begin in the third quarter of 2017, with operations expected to start in the fourth quarter of 2018. Infrastructure improvements form part of Stolthaven’s long-term strategic plans for the facility in the Port of Houston, where congestion is a key challenge. Guy Bessant, president of Stolthaven Terminals, says: ‘This new dock will efficiently accommodate tankers of up to 50,000 deadweight tonnes, and represents the latest of our ongoing multi-million dollar infrastructure investments at Stolthaven Houston. ‘This new tanker and barge dock will allow us to develop currently vacant property, in order to offer additional storage to our customers.’ The company is also completing capital projects at its terminals in the UK, South Korea and Moerdijk, the Netherlands, which will increase global storage capacity by 180,000 m3.
Zenith forms strategic alliance with storage consulting business Zenith Energy has entered into a strategic alliance with Waypoint Solutions as part of its plan to identify projects for chemical and petrochemical storage, particularly in North America. The agreement sets out that the parties will collaborate on the development of physical storage and logistics solutions for the petrochemical industry and related markets, which includes terminal, marine, pipeline, rail and truck distribution. Jeff Armstrong, president and chief executive of Zenith, says: ‘This alliance is consistent with our strategy of providing storage solutions to meet the dynamic needs of customers given the future growth of processing and evolving chemical supply chains.’ ‘This partnership is a natural extension of our business and will allow us to pursue opportunities to service new and existing customers with chemicals storage needs by combining our experience with a proven leader in the field,’ says Jay Reynolds, CCO of Zenith. David Ellis, founder and MD of Waypoint adds: ‘This strategic alliance between Waypoint and Zenith is a remarkable opportunity for us to increase the span of Zenith’s strategic vision and explore new opportunities in this area of the midstream market. ‘Given the positive market development in the North American petrochemical space, we see opportunities to deploy capital and create compelling, customer focused supply chain solutions.’
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TERMINAL NEWS l THE AMERICAS
Contract awarded for Vopak’s Panama storage terminal
Vopak to expand terminal in Brazilian port
The construction of Vopak’s new storage terminal in Panama will be carried out by the consortium of FCC and Felguera IHI.
Vopak has announced it will expand its Alemoa terminal with 16 additional storage tanks.
The independent facility in Bahía las Minas will be located next to the existing 509,000 m3 Chevron terminal in Panama, which is operated for Chevron by Vopak. The terminal will have nine storage tanks for marine oil, fuel oil and clean oil products with an aggregate capacity of 360,000 m3. In addition to the tanks, the construction project will also entail complementary marine infrastructure, including jetties to handle ships of up to 80,000 dwt. Work is scheduled to start immediately and is expected to take 24 months to complete. The facility is strategically located to the Atlantic entry to the Panama Canal, which is at the crossroads of international transportation and trade routes for refined oil products in the Caribbean region. It will also serve the expected increasing bunkering needs resulted from the expansion of the Panama Canal.
The facility, which is located in Brazil’s Port of Santos, Latin America’s largest port, will have an extra 61,000 m3 of capacity added, increasing its total capacity after the project to 235,000 m3. Additionally, five more truck loading bays will be constructed, which will be able to handle up to 130 additional trucks per day. The new capacity will primarily be used for ethanol exports and the imports of fuels such as diesel and petrol. The investment is supported by long-term customer contracts. The project is expected to be commissioned by the first quarter of 2019.
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l THE AMERICAS
Zenith Energy announces palm oil storage expansion in Colombia Zenith Energy and Cargill have entered into an agreement for the storage and handling of palm oil in Zenith’s Palermo Tanks Terminal in Colombia. As part of this agreement, Zenith will build 19,000 m3 of storage capacity in four dedicated tanks for Cargill’s palm oil operation. Construction work started on February 1. The project comprises a new dyke, tanks with heating systems, a dedicated dock line, dedicated truck loading and unloading positions with capabilities to import and export products. Jeff Armstrong, president and CEO of Zenith, says: ‘We are pleased to form this agreement with Cargill, one of the leading global producers and traders of agricultural products. ‘Colombia remains an important and fast growing producer of sustainable palm oil worldwide, and this agreement is an important step forward for our Palermo Tanks facility in Barranquilla. We are excited to work with Cargill and look forward to advancing our partnership in the region.’
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TERMINAL NEWS l ASIA
Puma reports 16% increase in sales volumes
Pengerang Terminal celebrates 1,000th vessel
Puma Energy has achieved an EBITDA growth of 12% as a result of record sales volumes and a series of organic growth projects.
Pengerang Independent Terminals has celebrated receiving its 1,000th vessel.
In its 2016 financial results, the company increased sales volumes by 16% to 22 million m3 and increased gross profit by 7% and EBITDA across all segments and regions. Last year it finalised several major construction projects and increased storage capacity to 7.9 million m3 as well as acquiring its 100th terminal, in Belfast, Ireland from BP. CEO Pierre Eladari says: ‘I was pleased to see the business model responding to a sustained period of organic growth across the business segments and regions; with the completion of the integration of UK activities acquired in 2015, growth in the Americas driven by the retail segment and good operating performance in retail and aviation across all regions. ‘With the macro-economic environment improving and our ability to leverage the fully invested platform we have established, I am confident in the business’ ability to continue its growth trajectory in 2017.’
MT Maersk Katarina arrived at the facility in the first week of April, within two years since the facility was fully commissioned. The facility is located at the south-eastern tip of Peninsular Malaysia in Johor and has 1.3 million m3 of storage for crude and refined petroleum products. Law Say Huat, CEO of the terminal, says: ‘This remarkable milestone reflects the confidence our customers have with our operations at Pengerang and also our vision to be the safest terminal with exceptional service excellence.’
Tank terminal project announced in Jurong Port Jurong Port and Oiltanking have embarked on a joint venture tank terminal project involving the construction of 19 storage tanks. Rotary Engineering has secured the engineering, procurement and construction contract for the $140 million (€128 million) project. The project comprises 19 clean petroleum product storage tanks, pump stations, valve manifolds, firefighting system, slop and waste water system, utilities, building, jetty topsides
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and interconnecting pipeline from Jurong Port to Oiltanking’s tank terminal. The terminal, situated on 16 hectares of land, will also be installed with a terminal controls system to ensure efficient operations. The facility will be located directly opposite Jurong Island’s petrochemical hub. It will
have an initial capacity of 232,000 m3 with the potential to add another 230,000 m3. It will be supported by jetties with a draft of 16 meters, capable of berthing vessels up to 120,000 dwt. Roger Chia Kim Piow, chairman and MD for Rotary, says: ‘The demand for liquid bulk storage remains resilient.’
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INCIDENT REPORT
Incident report
A summary of the recent explosions, fires and leaks in the tank storage industry 20/3/2017
3/4/2017
Enbridge
National Fuel
Strathcona County, Alberta, Canada Oil leaked from Enbridge’s storage facility into a storm pond on an adjacent site and into a creek. The source of leak has not been reported but it was quickly controlled and all the oil was contained after the National Energy Board responded to the incident. No one was injured and there was no risk to the public, according to the board. The Transportation Safety Board of Canada launched an investigation to establish the cause of the leak.
2/4/2017
Caddo Parish, Louisiana QEP Resources
A lightning strike is the suspected cause of an oil storage fire. Caddo Parish Sheriff’s Office said that the tank contained crude oil and salt water. The fire was quickly contained and was left to burn itself out.
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Forestville, New York Lubricant oil leaked from a National Fuel storage tank in its compressor station. Representatives from the New York State Department of Environmental Conservation were on site after being quickly notified of the spill and monitored the company’s response plan. The company said in a statement that 2,133 gallons were quickly recovered from the 2,200 gallon tank the same day the spill was reported.
23/4/2017
Gulf of Paria Petrotrin
More than 300 barrels of crude oil leaked into the Gulf of Paria from Petrotrin’s Pointe-a-Pierre refinery. Petrotrin started immediate clean-up operations as well as containment of the spill, which resulted in wildlife being covered with oil. A national oil spill contingency plan was implemented in Trinidad and Tobago after the spill was detected in their region.
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TANK TERMINAL UPDATE
Tank terminal update: The Americas Howard Midstream Energy Partners
Martin Midstream Partners
Location:
Location:
Products:
Construction/ expansion/ acquisition: Completion: Comment:
Port Arthur, Texas Variety of products The significant expansion involves 15 new tanks as well as new marine facilities for blue water and inland marine vessels 2018 The company also plans to construct a pipeline system to transport products between the terminal and other third-party supply points
Products:
Construction/ expansion/ acquisition: Investment: Comment:
Kansas City Souther, Watco Companies, WTC Industrial
NuStar
Location:
Location:
Products:
Construction/ expansion/ acquisition: Investment:
Completion: Comment:
San Luis Potosi Refined products The initial phase involves the construction of a unit train liquid fuels terminal in the WTC Industrial Park $45 million in the initial phase Second quarter of 2017 The terminal project will eventually include a storage facility that will provide retail fuels for central Mexico
Products: Capacity:
Construction/ expansion/ acquisition: Completion: Comment:
Louisiana Crude oil 2.5 million barrels The entire project comprises seven new tanks and will include electronic level controls, fire detection equipment, advanced security surveillance and monitoring April 2017 Three tanks were brought into service last year three months ahead of schedule due to market demand
Magellan Midstream Partners, LBC Tank Terminals Location:
Products:
Construction/ expansion/ acquisition: Completion: Comment:
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Asphalt The company acquired the facility from Martin Resource Management $27.4 million The company will spend $8.6 million to complete construction
Corpus Christi Crude oil, refined products
Construction/ expansion/ acquisition:
The acquisition from Martin Midstream Partners includes a 900,000 barrel terminal, a refined product barge terminal and certain pipelines
Investment:
$107 million
Comment:
Martin Midstream said the sale was a necessary first step to returning the company to a growth trajectory
Pin Oak
LOOP Location:
Products:
Texas
Seabrook Logistics, Houston, Texas Crude oil, condensate The expansion plans comprise 636,000 m3 of additional storage plus capacity and pipeline infrastructure End of 2017 The additional capacity will be connected to Magellan’s Houston crude oil distribution system with a 24-inch diameter pipeline
Location:
Products:
Construction/ expansion/ acquisition: Investment:
Completion: Comment:
Mount Airy, Louisiana Petroleum and chemicals A joint investment by Dauphine Midstream and Mercuria Energy Group is being used for Pin Oak Terminals $100 million June 2017 Pin Oak will be a key hub and will add much needed storage logistics capabilities to match growing demand
Sprague Resources Location:
Products:
Construction/ expansion/ acquisition: Investment: Comment:
Rhode Island, New York Distillate, petrol, ethanol The company bought Capital Terminal Company’s terminal and has plans to convert half of the storage capacity to petrol and ethanol services to great a new revenue stream €23 million The facilities capacity of just over one million barrels has been leased exclusively by Sprague since April 2014
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TERMINAL NEWS l XXXXXXX
NETZSCH TORNADO® T2 Rotary Lobe Pumps Tallgrass Energy Partners Location:
Products:
Construction/ expansion/ acquisition: Investment: Comment:
Colorado Crude oil The company has acquired two terminals in Colorado as well as two potential storage development projects $140 million The company acquired Tallgrass Terminals and Tallgrass NatGas Operator
Vopak Location:
Products: Capacity:
Construction/ expansion/ acquisition: Completion: Comment:
Port of Santos, Brazil Ethanol, diesel, petrol 235,000 m3 16 additional storage tanks are being added, comprising an extra 61,000 m3 of capacity First quarter of 2019 The investment is supported by long-term customer contracts
The perfect concept of the Rotary Lobe Pump
Full Service in Place (FSIP) Oil free and synchronised tooth belt drive Patented metal to rubber lobe contact Low pulsation due to optimised flowpath through the pump chamber
Zenith Energy Location:
Products: Capacity:
Construction/ expansion/ acquisition: Comment:
Mexico Fuel, LPG More than 90 storage and distribution locations Zenith will market and develop assets for oil storage and distribution for Cemex to support the growing demand for oil products Zenith has been given the rights to develop certain Cemex facility for fuel and LPG storage and distribution
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: jasmin@tankstoragemag.com.
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
NETZSCH rotary lobe pump team NETZSCH Pumpen & Systeme GmbH Tel.: +49 8638 63-2400 info.tornado@netzsch.com www.netzsch.com
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EVENTS l TANK STORAGE AWARDS
SOMETHING TO CELEBRATE
T
he first Global Tank Storage Awards was filled with anticipation and excitement, and it did not disappoint on either front. The sold-out event, attended by 180 professionals from across the tank terminal sector, was hosted by international comedian Bob Maclaren and as guests dined on a sumptuous three course meal, they were entertained by a magician. The evening celebrated achievements by terminal operators, ports, equipment suppliers and individuals. Following the
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award’s ceremony, guests enjoyed trying their luck at the casino as well as enjoying the photobooth as live band Blend-It performed some familiar favourites. Margaret Dunn, Tank Storage Magazine’s publisher, says: ‘Our first event exceeded our expectations and it was clear that everyone had a really enjoyable evening. We are looking forward to working closely with the industry to select next year’s judges and categories and continue growing the event.’
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EVENTS l TANK STORAGE AWARDS
Professional organisation, a knowledgeable audience and a highly qualified judges made this event high scale and gave the award winners good recognition and broad acceptance for their individual products and performances. It was an impressive event. Thomas Overbeck, CEO, Timm Elektronik
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EVENTS l TANK STORAGE AWARDS
Loadtec and Zipfluid spent a very enjoyable evening at the first Global Tank Storage Awards gala dinner. It was a good opportunity to host our clients from StocExpo Europe in a relaxed environment. The event was very well organised and a good time was had by all. Well done to the Tank Storage team! Sue Keeler, director, Loadtec Engineered Systems
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
EVENTS l TANK STORAGE AWARDS
Next year’s event will be held on 20th March 2018. Judges already confirmed include:
James Foster, Global Commodity Head, BP Oil International Laurent Hatzopoulos, Manager, Third Party Storage, Shell Trading Mike Pitta, VP of EH&S, Kinder Morgan terminals Roel Brouwer, International Technical Advisor, Vopak Jonathan Silk, Technical Manager, Oiltanking Odfjell Terminal Oman Oliver Stanelle, General Manager Central Engineering, Oiltanking Keith Jackson, Operations Director, InterTerminals Erik van Ommeren, Technical Director, Koole Storage & Transport Niels Van Bladeren, Chief Financial Officer, LBC Tank Terminals Margit Blok, Global HSE Director, VTTI
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EVENTS l TANK STORAGE AWARDS
2017 Global Tank Storage Award winners Most Efficient Storage Terminal Award Winner: LBC Cepsa
Best Newcomer Award Winner: Frank Schreurs, Managing Director, In-Energy
Biggest Commitment to Environmental Protection Award Winner: IL & FS Prime Terminals Fujairah
Individual Achievement Award Winner: Ellen Ruhotas, Managing Director, Ratio Group
Safety Excellence in Bulk Liquid Storage Award Winner: Ventspils Nafta Terminals
Most Invaluable Product Winner: EUS-2 Overfill Prevention Controller by Timm Elektronik
Best Port Award Winner: Port of Antwerp
Best Technology Provider Winner: Loadtec Engineered Systems
Personality of the Year Award Winner: Tony Quinn, CEO, TankBank International
Most Innovative Technology Winner: Elios by Flyability
With thanks to our sponsors
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TERMINAL NEWS l XXXXXXX
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PROFILE l OILTANKING NORTH AMERICA
EXPANDING OILTANKING’S FOOTPRINT IN NORTH AMERICA Following the sale of its two biggest US assets in 2014, Oiltanking is on the expansion track again with a newly acquired terminal and ambitious plans for a new deepwater facility in Texas
02
O
iltanking North America’s decision to re-enter the crude storage sector was a pragmatic one supported by favourable global market conditions and better shale economics. The company’s North American division has hit the headlines recently following the acquisition of Oiltanking Galveston Country terminal and a 220 acre parcel of industrial land in Texas City for the development of the Texas Independent Deepwater Expansion terminal (TIDE). Two years prior to this, the company sold its Oiltanking Partners entity, comprising storage assets on the Houston Ship Channel and in Beaumont, Texas following a period of rapid growth as a result of the shale boom. The proceeds from the sale were invested back into the company’s growth plans both in the US and internationally. However, the sale left a hole in Oiltanking’s North America portfolio and has since driven the company’s ambition to re-enter crude storage and the flourishing export and import markets in the Houston and Texas City area. Houston is home to around 2.5 million barrels per day of refining capacity and its ship channel has more than 50 million barrels of storage capacity, which is capable of receiving and sending out large volumes of crude, oil products and petrochemicals. In an interview with Tank Storage Magazine,
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01
Jerry Hardman, director, business development & commercial, explains that the need for additional infrastructure in Houston, which attracts a significant majority of crude from North American shale plays, supported the company’s decision to invest. He says: ‘Houston’s existing infrastructure allows for export capabilities not seen in any other American port. As US crude production
01 Oiltanking Galveston County (top left) and the TIDE development (bottom right) are situated close to, and support Oiltanking Texas City, which enjoys a strategic location that allows for deepwater access 02 The company hopes to expand further in North America with further developments and acquisitions that support its strategic business strategy
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PROFILE l OILTANKING NORTH AMERICA
I hope Oiltanking surpasses the goals we have set for growth in North America Mexico. Additionally it also faces low congestion compared to Houston, allowing for quicker ship turnaround times and little to no demurrage. The wider Texas City area has more than 800,000 barrels per day of refining capacity with the likes of Valero and Marathon’s Galveston Bay refinery, which, after integration and expansion, will be the second largest refinery in North America.
OILTANKING NORTH AMERICA AT A GLANCE: The company owns two terminals in Texas – Galveston County and Texas City – and has acquired land for a new Texas Independent Deepwater Expansion terminal. The deepwater terminal will initially have more than three million barrels of storage, with potential of up to five ship docks and the option to tie into various crude and product pipelines in the area Through its infrastructure assets, the company will cover crude oil, natural gas liquids, specialty chemicals, petrochemicals and refined products markets
continues to grow again, mainly due to a more favourable global oil market and ongoing progress being made in improving shale play economics, it needs more outlets than Houston can provide. ‘The need for this infrastructure and outlets has lent support to Oiltanking investing in a terminal with crude export capabilities.’ FULFILLING DEMAND The TIDE terminal will comprise an initial storage buildout of more than three million barrels, with the potential to add a further 10 million barrels as well as the construction of a finger pier with two deep-water docks with 45 foot draft, with the potential to extend to five. This makes the terminal the only independently-owned, private ship docks in Texas City. Upon the completion of the first phase in late 2019 the terminal will form a viable export/import/blending hub alternative in the Houston market offering significant flexibility
and optionality. It will also be well-positioned to cater for NGL’s and clean refined product flows. Diversifying its portfolio further, the company also acquired the Galveston County terminal, which serves the specialty chemicals and petrochemicals market with 430,000 barrels of capacity spread over 78 tanks. It has ample room for additional capacity expansions and accompanying logistics infrastructure. Hardman says the facility will increase the company’s chemical storage footprint and will give it opportunities to expand into new products or projects. Both acquisitions are situated close to, and support, the company’s Texas City terminal, which offers sophisticated infrastructure with 3.5 million barrels of liquid petroleum products, renewables and chemicals storage capacity. The Texas City facility is strategically located at the mouth of Galveston Bay, allowing for deepwater access to and from the Gulf of
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GROWTH REGIONS Hardman says there are several regions in the US of particular interest to Oiltanking as part of its growth strategy - the Gulf Coast, Midwest and East Coast. ‘The Gulf Coast accounts for the majority of crude oil, petrochemical production and refined product output in the US,’ he says. ‘Therefore, it stands to reason there are more opportunities here in storage and logistics optimisation than in most regions of North America. The Midwest and East Coast are also attractive but for various reasons. ‘The Midwest is the second largest region for production and the economically advantaged refineries are looking for additional outlets to increase net backs and fill market ‘shorts’ typically supplied by other regions. The East Coast has some of the highest petroleum consumption rates in the US and is highly dependent on imports for both crude and refined products supply. ‘In fact, the South Atlantic region has been experiencing higher population growth rates in the past decade. As storage terminals and logistics are Oiltanking’s core competency, these areas of high production, changing product flows and population increase should be focused on.’ As part of its global growth strategy, Oiltanking is also looking to diversify its storage portfolio and as such, has developed a gas strategy to grow its position in gas. ‘We plan to expand into natural gas and natural gas liquids logistic infrastructure. We plan to achieve this through expansion at our existing facilities and acquisition and I would like to see us acquire gas liquids assets in North America in the next one to two years. Hardman adds: ‘I hope that Oiltanking achieves and surpasses the lofty goals we have set for growth in North America. I also hope that we continue to expand our existing assets, complete the development of the TIDE terminal and acquire assets with unique attributes and/ or locations.’
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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MARKET ANALYSIS l US PIPELINE CONSTRUCTION
THE TRUMP EFFECT The Dakota Access Pipeline, which received Presidential approval earlier this year, will provide new means of connectivity at key hubs across the US. Genscape’s Hillary Stevenson reports
P
residential Executive Orders touting the construction of Energy Transfer Partner’s Dakota Access Pipeline rapidly advanced the controversial project that was previously delayed by the Obama administration. The pipeline system will move up to 470,000 barrels per day (bpd) of crude to Midwest and Gulf storage terminals in the US. The new flow routes should strengthen North Dakota Bakken crude differentials due to added takeaway capacity, which will also shift transportation patterns across the US. DAKOTA ACCESS PIPELINE CONSTRUCTION TIMELINE Energy Transfer was filling their North Dakotato-Texas Bakken Pipeline system, as of April 28, 2017. Both the 470,000 bpd North Dakota-toIllinois Dakota Access Pipeline (DAPL) northern segment and the 470,000 bpd Illinois-to-Texas Energy Transfer crude oil pipeline (ETCOP) southern segment are expected to begin flows on May 14, 2017, according to a Federal
Figure 1: Energy Transfer’s Bakken Pipeline route
Energy Regulatory Commission (FERC) filing. DAPL and ETCOP were originally slated to be completed by the end of 2016, but were delayed due to protests and legal challenges. However, the US Army Corps of Engineers issued an easement on February 8, 2017, following a Presidential Memorandum March 8, 2017, DAPL construction on the eastern shore of Lake Oahe (Source: issued on January 24, Genscape) 2017, that called for the expeditious review of requests for construction and operation the commencement of operations and initial approvals of these and other pipelines. calibration. On March 8, 2017, drilling work was still ongoing at Lake Oahe, North Dakota, under DAPL BY THE NUMBERS which DAPL now passes, before continuing The Stanley, North Dakota,-to-Patoka, Illinois, south towards the Patoka, Illinois, storage DAPL line will be operated by Sunoco and will terminal and ETCOP origin. All downstream move oil from the Bakken/Three Forks region in pumping stations were complete at that time. North Dakota to the Patoka storage hub. Genscape observed initial power conLinefill for DAPL totals more than 5 milsumption at the DAPL Story, Iowa, pumping lion barrels. PADD 2 inventories increased station on March 26, 2017, suggesting linefill 4.42mn bbls between March 24 and April had begun, including beneath Lake Oahe. 14, according to the US Energy Information Genscape uses proprietary technology to monAdministration (EIA). itor the power flows on power lines feeding In North Dakota, DAPL sources crude from electricity to pumping stations on oil pipelines. a variety of rail terminals including EOG’s Genscape had been monitoring the Story 75,000 bpd Stanley terminal, Crestwood’s pumping station since early March, and this 160,000 bpd COLT terminal in Epping, and was the first time that sustained power conSavage’s 175,000 bpd Trenton facility, all in sumption was observed. Energy Transfers was Williams County, North Dakota. More than 2 commissioning DAPL and preparing to place million barrels of storage capacity exists on it into full service as of March 27, according the pipeline between Stanley and Johnson’s to a legal status report filed by the company. Corner (see Figure 1). Beyond those conNear-real-time flow data for DAPL will be incornected facilities, more than 4.5 million barrels porated into Genscape’s PetroRail Bakken and of storage capacity is available at nearby rail Mid-Continent pipeline data streams pending loading terminals.
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MARKET ANALYSIS l US PIPELINE CONSTRUCTION
Patoka Supply Chain
At Patoka, DAPL appears to have access to Enbridge and Marathon tanks, in addition to the Sunoco tank farm, and the northernmost ETCOP pump station. More than 7 million barrels of storage capacity was operational between those three operators, as of April 21, 2017, according to Genscape. As of April 21, the Patoka hub contained nearly 19 million barrels of operational tank capacity and supplies 2.25mn bpd of Mid-Continent refining demand. ETCOP FACTS AND FIGURES ETCOP was mostly a conversion of Trunkline, an idled Energy Transfer natural gas pipeline. The 744 mile, 30-inch pipeline is comprised of four pump stations, a number of legacy compressor stations and two terminals. The ETCOP pump stations are in Patoka, Dyersburg, Tennessee, Epps, Louisiana, and Longville, Louisiana. Extensive modifications were made at most of these pump stations. At the Patoka, Dyersburg and Epps stations, new pumps, enclosed in a building, were visible as of late March. The northernmost ETCOP pump station, located just outside of Patoka, appeared to be complete in January 2017, according to Genscape. Genscape is monitoring pumping station power consumption on ETCOP. Near-real-time flow data for ETCOP will be incorporated into Genscape’s Gulf Coast and Mid-Continent pipeline data streams pending the commencement of operations and initial calibration. As of April 21, 2017, no significant, sustained power consumption had been detected at ETCOP
pumping stations. ETCOP will require nearly 3.5 million barrels for linefill. The pipeline will deliver Bakken oil to either Sunoco’s Nederland, Texas, or Phillips 66’s Beaumont, Texas, terminals, according to the April 13, 2017, FERC filing. Sunoco’s Nederland facility contained 69 tanks with more than 24 million barrels of operational capacity, according to Genscape. The terminal receives oil from TransCanada’s 700,000 bpd Gulf Coast pipeline, Sunoco’s 300,000 bpd West Texas Gulf pipeline, and Exxon’s 95,000 bpd Pegasus pipeline. It also can receive crude indirectly from Enterprise’s 750,000 bpd Seaway pipeline system. Crude can move out of Sunoco’s Nederland facility to ExxonMobil’s 350,000 bpd Beaumont refinery, Valero’s 292,000 bpd Port Arthur, Texas, refinery, Total’s 225,000 bpd Port Arthur refinery, and Motiva’s 600,000 bpd Port Arthur refinery. Additionally, crude can be loaded onto vessels from the Sunoco terminal for export or domestic delivery. More than 16 million barrels of crude were loaded at Sunoco’s marine dock in 2016, according to Genscape. The Phillips 66 Beaumont tank terminal consisted of 27 tanks with 700,000 barrels of capacity in construction, as of April 21, 2017. Once complete, the terminal will have more
Sunoco’s Nederland and Phillips 66’s Beaumont tank terminals, April 20, 2017 (Source: Genscape)
September 22, 2016, construction of ETCOP’s Patoka pump station (Source: Genscape)
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than 7 million barrels of operational capacity, according to Genscape. The Phillips 66 and Sunoco terminals are adjacent and interconnected. Phillips 66’s Beaumont terminal can also receive crude from the Seaway pipeline system and deliver barrels to ExxonMobil’s Beaumont refinery. Like the Sunoco terminal, the Phillips 66 terminal contains a marine dock, allowing a variety of export and domestic movements. BAKKEN PIPELINE SUPPLY CHAIN IMPACTS The additional pipeline takeaway capacity due to the Bakken Pipeline is likely to strengthen Bakken crude oil prices and impact transportation trends from North Dakota to the US East Coast and US Gulf Coast. Once the Bakken pipeline is operational, total pipeline takeaway and local refining capacity will be above current Bakken production levels, eliminating the need for most rail loadings in the region. In February, North Dakota crude production rose nearly 53,000 bpd month-on-month to
Bakken production/transportation balance (Source: Genscape)
1.034mn bpd, lifting the two-month increase to almost 92,000 bpd, according to the most recent data available from the North Dakota Department of Mineral Resources. Pipeline and local refinery capacity in North Dakota was about 878,000 bpd in April, leaving about 150,000 bpd of output left to move on rail. The DAPL pipeline would bring pipeline takeaway and local refining capacity to 1.348 million bpd, which more than covers current production levels. Rail loadings in North Dakota averaged 240,000 bpd in April, nearly half of the record high of 585,000 bpd reached in March 2014, according to Genscape. PRICING IMPACTS With sufficient, cheaper pipeline transportation, Bakken differentials are expected to narrow. Bakken railhead prices have narrowed considerably over the last three years, especially recently on anticipations of DAPL operations. The Bakken Railhead differential narrowed $0.65/bbl to WTI calendar month average (CMA) minus $3.10/bbl on April 24, 2017, from the prior week. So far in 2017, Bakken Railhead prices have averaged $3.59/bbl below WTI CMA. Bakken railhead prices were discounted $8.15/bbl below WTI CMA in 2014 when production levels were rising and limited pipeline transportation was available, according to
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MARKET ANALYSIS l US PIPELINE CONSTRUCTION
Genscape. The discount rose to an average of $4.90/bbl and $4.77/bbl below WTI CMA in 2015 and 2016, respectively, with declining production and the addition of Kinder Morgan’s 99,000 bpd Dore, North Dakota-to-Guernsey, Wyoming, Double H pipeline. These increasing costs will likely eliminate the economic incentive to rail Bakken crude to the US East Coast. Philadelphia Energy Solutions will not take any Bakken crude by rail at their 335,000 bpd Philadelphia refinery in June 2017 on the anticipation of higher Bakken crude prices, according to an April 19 Reuters article. US East Coast rail deliveries have decreased in recent months with the increase in Bakken Railhead prices and a narrow Brent-WTI spread, a key indicator in crude-by-rail economics. In April, rail terminals on the US East Coast monitored by Genscape took on average 101,000 bpd by rail, down from 115,000 bpd in March and a peak of 378,000 bpd in October 2014, according to Genscape. Crude imports to US East Coast refiners have been increasing to make up for decreased domestic crude rail deliveries. As of April 20, the US East Coast imported about 590,000 bpd on average in April 2017, up from 436,000 bpd and 428,000 bpd in March and February 2017, respectively. Conversely, US Gulf Coast refiners will likely benefit from the new Bakken Pipeline. The new
pipeline offers a cheaper route for Bakken crude to reach the Gulf Coast market with the option for export given the connectivity at the Sunoco Nederland and Phillips 66 Beaumont destination points. DAPL will have an uncommitted tariff rate of $6/bbl for delivery to Patoka, while the committed rate is $5.25/bbl for over 5,000 bpd for five and seven-year contract terms. In a joint tariff with ETCOP, the cost for delivery to Nederland/Beaumont is $7.50/bbl for uncommitted shippers while it varies from $5.60-$6.50/bbl for a seven-year contract, and $5.50-$6.25/bbl for a ten year contract, depending on the amount being shipped on the pipeline, according to the FERC filing. The DAPL and ETCOP tariffs also mandate Bakken General crude quality with penalties for lighter crudes. Bakken General is characterised as API gravity between 39 and 48 with less than 0.2 percent sulfur. These transportation costs are slightly lower than combined uncommitted tariff rates on Double H/Pony Express to Cushing with Seaway system/TransCanada Gulf Coast downstream transportation delivery options to the Gulf. DAPL also offers slightly cheaper transportation to Patoka than the Enbridge System (Mainline to Southern Access Extension); however, ETCOP is the only operational pipeline connectivity out of Patoka to the Gulf Coast.
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The first Bakken export departed on March 29 bound for Asia where it will be marketed with sample offers for testing, according to Platts. Bakken crude would be a great quality fit for Asian refineries, which prefer high distillate yield crude, but high transportation costs previously prohibited the economics of moving this crude to Asia. Cheaper pipeline transportation via DAPL and ETCOP could incentivise exports should light crude demand persist. CONCLUSION Since the Presidential Executive Orders in January 2017, construction on Energy Transfer Partner’s Bakken Pipeline system progressed rapidly. Once the lines are brought online, likely in May 2017, they will provide new means of connectivity from production regions in North Dakota to refinery markets in the US Mid-Continent and Gulf Coast. The impact of the new lines will likely send ripple effects through the North American crude distribution network, as transportation economics shift in the Bakken, refiners along the East Coast seek new sources of crude, and Gulf Coast markets implement the additional supply. FOR MORE INFORMATION This article was written by Hillary Stevenson, oil market and business development analyst at Genscape. www.genscape.com
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MARKET ANALYSIS l IMO REGULATIONS
WHO’S STEERING THE SHIP? John Mayes and John Auers at Turner, Mason & Company examine what is next for the industry following the 2020 deadline set by the IMO for low sulfur bunker fuel
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n October 2016, the International Maritime Organization (IMO) definitively set the transition date for the introduction of low sulfur bunker fuel to January 1, 2020. This action ended years of debate as to when the new regulations would take effect and has helped to galvanize attention on how the lower sulfur bunker fuel will be produced and the likely market effects which will result. BACKGROUND The IMO is an agency of the United Nations and has been given jurisdiction by the UN over environmental and safety issues in international waters. It is currently comprised of 172 member states. In 2005, the IMO developed its Annex VI requirements, which set a maximum sulfur limit for bunker fuel at 4.5%. This limit was reduced to 3.5% in January of 2012. The Annex VI regulations also required a further reduction to 0.5% in January of 2020, but included an option to delay implementation until January of 2025. The maritime industry was concerned that the availability of compliant fuel in 2020 would be insufficient to meet global requirements. The Annex VI regulations mandated the IMO to conduct a study before the end of 2018 to evaluate the likely supply of low sulfur bunker fuel. If the study concluded there would be insufficient bunker supplies, the IMO was given the authority to defer the implementation until 2025. The IMO likely assumed the global refining industry would produce low sulfur bunker fuel in the same manner as it complied with low sulfur petrol and diesel requirements; through catalytic hydrotreating. Rather than producing a low sulfur fuel oil, a refiner (with only a modestly higher investment cost) could construct a coking unit and entirely exit the fuel oil market. The global refining industry however, was wary of making any substantial capital investments in advance of an uncertain implementation date. To expedite the process, the IMO conducted its supply analysis early and presented the findings in October 2016. Having concluded there would be ample supplies available in 2020, the January 2020 date was confirmed. With barely three years remaining however, the refining industry had insufficient time to react. This process has resulted in virtually no preemptive actions by the global refining industry. In addition to the production of low sulfur bunker fuel, the IMO also
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allowed a second path to compliance. Vessels which install on-board scrubbers to remove sulfur and nitrogen compounds would be allowed to continue to burn higher sulfur bunkers. The global maritime industry has been slow to initiate this process but expects significantly higher scrubber installations in 2019. The maritime industry is in poor economic health however, and most experts only foresee conversions of 15-20% of the global fleet by 2020. This dual path to compliance also contributed to the inaction by both industries in that each would prefer the other to spend the tens of billions of dollars for the required investments. CURRENT ANXIETIES Rather than desulfurising existing fuel oils, the likely path to the production of low sulfur bunker fuel is expected to be through the diversion of large volumes of gas oils and distillates. The International Energy Agency (IEA) has estimated that two million barrels per day (bpd) of distillate will be diverted into the bunker pool in 2020. This incremental supply will back out approximately 1.8 million bpd of higher sulfur fuel oil on a BTU basis. These demand shifts are expected to cause significant pricing gyrations. Turner, Mason & Company estimates global distillate demand prior to the January 2020 implementation to be around 37 million bpd and rising by around 0.5 million bpd per year. If the IEA is correct, this distillate demand spike will be equivalent to four years of global demand growth. The pricing impacts could be dramatic. Even more problematic will be the alternate disposition of the surplus fuel oil. The non-bunker fuel oil market is only about 4.6 million Bpd and has been declining for decades. The sudden increase of another 1.8 million bpd in supply will present significant challenges to the refining industry. As of yet, a solution path to place this surplus material has not developed. In addition to the product price swings, the crude oil markets are also likely to be impacted. Refiners will be stimulated to process lighter crude slates to minimise high sulfur yields.
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MARKET ANALYSIS l IMO REGULATIONS
This will widen light/heavy crude differentials by increasing demand for light crudes and decreasing demand for heavier grades. These pricing shifts for crudes and products will produce a wide variation of margin impacts for global refiners. Coking refineries will benefit from the higher distillate prices and the widening light/heavy crude differential while being relatively immune to the low fuel oil prices. Asphalt refiners would be in a similar position except that they could face new competition from fuel oil refineries entering the asphalt market. The most negatively impacted facilities will be global fuel oil refineries. While benefiting from the higher distillate prices, these refineries have the highest risk from either low fuel prices, or in the worst case, the inability to sell fuel oil. Regionally, coking refineries have the highest concentration in the US, India, and China. As a result, these countries will see a net benefit from the IMO regulations. Fuel oil refineries in market economies (Europe) will see the greatest negative impact.
by the Marine Environment Protection Committee (MEPC) of the IMO. The IMO staff has no ability to initiate such an action. The email response also stated that a proposal from a member country would have to be approved at the MEPC 71 conference in July 2017 and adopted at the MEPC 72 conference in April 2018 to be in force for the January 1, 2020 transition date. Early last year, before the 2020 implementation was set, Turner, Mason & Company posed a similar question to the IMO as to whether only 2020 and 2025 could be set as compliance dates. The response indicated the Annex VI regulations required one of these dates but stated other dates could be proposed through an amendment. An amendment to the Annex VI regulations however ‘would require a minimum of 22 months after approval before the amendment could enter into force’. These responses present a disturbing image. While democratic, the procedures established by the IMO do not allow for quick counter-measures and responses to market disruptions. This result could produce a chaotic market in 2020 with no ability by the IMO to take corrective action.
IS THERE A WAY OUT? Now that the implementation date has been firmly set and the market has become more focused on the impending demand shifts, concerns on the likely pricing effects are growing. One question has arisen which involves the potential for a temporary waiver for the continued use of high sulfur bunker fuel to mitigate undesired pricing spikes. It is believed that this procedure could ease the transition process and reduce the magnitude of the pricing swings. Turner, Mason & Company posed this question to a member of the IMO Secretariat. The email response indicated there is no current mechanism within the IMO to grant blanket waivers to facilitate the transition process. Such a mechanism could be introduced however, but it must be proposed by a member country and subsequently approved
FOR MORE INFORMATION This article was written by John Mayes and John Auers at Turner, Mason & Company. www.turnermason.com
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PROFILE l ARC LOGISTICS PARTNERS
01
EXPANDING INTO NEW STORAGE OPPORTUNITIES
Arc Logistics Partners explain how they are organically growing their existing portfolio of storage assets as well as exploring growth opportunities into new markets
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he liberalisation of Mexico’s energy market has opened up new opportunities for the market and is a potential for companies like Arc Logistics Partners to enhance and expand its business. This market opening has generated extensive interest with a number of Arc’s customers and has provided a potential additional platform for new customer generation and growth. In line with the company’s strategy to explore strategic acquisitions that will expand its terminal portfolio into new markets and opportunities, Arc’s team is evaluating how to enter this market and take advantage of this potential new market opportunity. In an interview with Tank Storage Magazine, John Blanchard, president of Arc Terminals, says that it is exploring these opportunities. ‘We are evaluating opportunities in this new market because this potential new market is outside of the US, we are mainly looking at opportunities with a partner that has international expertise. Since its initial acquisition in 2007 of eight light product terminals from Center Oil
Company, Arc has grown significantly in the market as a result of a successful diversification strategy it began implementing in 2010 through the acquisitions of two heavy products terminals in Mobile, Alabama and a light products terminal in Baltimore, Maryland. Since that time, Arc has completed several incremental acquisitions of crude oil, heavy fuel oil/asphalt and light products terminal with the most recent acquisition consisting of four refined products terminals in Pennsylvania from Gulf Oil. This transaction was an example of Arc executing on its core business strategy,
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Acquisition targets where we have very little prior exposure to the customer base are intriguing to us
and realised the company’s primary objective for all acquisitions - acquiring assets that are positioned to play a key role in the supply chain logistics of petroleum movements. The acquisition, which comprised of 28 storage tanks with 816,000 barrels of capacity increased the company’s storage footprint by 12%, with the ability for expansion. The four terminals serve petrol, distillates, ethanol and biodiesel product markets. Blanchard says: ‘Because we knew the Gulf Oil terminals were well positioned for growth, we were confident we could bring these assets up to our standards, despite the substantial upgrades and the sizeable investment required to do so. We also felt comfortable we could operate the terminals safely and efficiently while such upgrades were being implemented. ‘While we focused heavily on the continuity of the existing customer throughput volumes and the potential that these new terminals brought to our existing customer base, the driving force behind this opportunity was the potential to attract new customers that are specifically interested in these markets and in
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PROFILE l ARC LOGISTICS PARTNERS
03
04
01 The company acquired four terminals from Gulf Oil in 2016 as part of their diversification strategy 02 The company focuses on providing incremental capacity and expanding its footprint around its established customers 03 Arc Logistics Partners has 21 terminals across 12 US states 04 The company plans to complete several new projects in 2017, including expanding tankage and adding new transportation modes as well as working will potential customers to maximise its Joliet terminal
02
growing their business around these assets. ‘Today, as we continue to complete these facility upgrades, our customers in these terminals consist of a healthy mix of Arc’s prior existing customers and new Pennsylvaniaspecific customers that we have added to our portfolio as a result of this acquisition.’
very little prior exposure to the customer base are intriguing to us, as this leads to new customer relationships and potential future growth either within the asset or in new markets with those new customers once they experience our operating flexibility and exemplary level of customer service.’
MARKET DIVERSIFICATION Through the company’s diversification strategy into light and heavy products, crude oil and industrial products, it has gained exposure and formed relationships with several major oil companies, independent refiners, marketers, wholesalers, retailers and industrial manufacturers. Blanchard explains that Arc is not looking to grow into any specific regions or product markets, but rather the company’s strategy is focused on providing incremental capacity and expanding its footprint around its established customer base by acquiring additional terminals, adding delivery locations with the same regional market and creating access to new markets. However, new markets remain of particular interest to the company as they present opportunities to work with new potential customers. ‘We are always open to acquiring assets that have an established customer base that we have little to no relationships. ‘In fact, acquisition targets where we have
FUTURE PLANS Blanchard says the company is currently focusing on organic growth of its existing assets, including the potential to build several new tanks for extra storage or new products. ‘One of our primary focuses in 2017 will be on potential new projects at our Joliet, Illinois terminal to expand our tankage and to add new transportation modes. ‘The combination of the ability to move crude oil and other products by marine, rail
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and truck will create other potential business opportunities at the terminal. ‘In addition to adding new transportation modes, we have the ability to construct more than one million barrels of new tankage at that asset. We are working with several potential new customers to make sure the Joliet terminal can reach its full potential. ‘Additionally, we are actively working on several other new build tank projects to increase our light and heavy products terminal capabilities to grow within our respective markets. ‘Even though we are focusing on organic growth projects, we continue to explore strategic and accretive acquisition opportunities that will expand our network of terminals and allow us to better serve our customers,’ Blanchard adds.
ARC LOGISTICS PARTNERS AT A GLANCE: The company has more than 7.8 million barrels of storage in 21 terminals covering 12 states Its facilities are located in the East Coast, West Coast, Gulf Coast, and Midwest of the US It stores petrol, various distillates, ethanol, biodiesel, crude oil, asphalt, aviation gas, jet fuel, various fuel oils, crude tall oil and industrial products
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MARKET ANALYSIS l STORAGE IN THE AMERICAS
UNLEASHING AMERICA’S ENERGY While the industry waits with baited breath for more of President Trump’s ‘ unleashed energy policy’, growth is back on the agenda in the Americas and regions are undergoing a tank storage construction boom. Amy McLellan reports
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ebruary 2017, and there’s a new president in town. For the oil patch, it was a moment of anticipation and uncertainty: now that he was president, would Donald Trump make good on his bombastic campaign promise to ‘unleash energy’? Fast forward to May 2017, and it would seem so. Within the first 100 days of his tenure, President Trump greenlit the controversial Keystone XL and Dakota Access pipelines and increased access to federal areas for energy development. Industry lobbyists are keen to make the most of this pro-energy, anti-regulation administration, with a recent report from the American Petroleum Institute (API) pointing out that the ‘right regulatory policies’ could see private investment in oil and gas infrastructure top $1.3 trillion by 2035, creating more than one million jobs and further bolstering the country’s domestic manufacturing base. It’s too early to say how much impact a pro-energy White House will have on an industry that is stuck in a low-price commodity cycle. This early in the administration and Erik Broekhuizen of Poten & Partners says the big difference is ‘a changed emphasis and mindset’ rather than any concrete policy change. Corporate tax cuts would make investment more profitable while a relaxation of regulation and more access to Federal land and water resources could act as a stimulus, lowering production costs and accelerating the build out of infrastructure. While the industry waits for further signals of an ‘unleashed’ energy policy under President Trump, it is business as usual – and that means a whole lot of oil. For despite the sustained downturn in oil prices, the country’s domestic output continues to surprise. Onshore drillers targeting unconventional oil have proved remarkably resilient. Expectations that shale producers could only
Zenith’s Palemo terminal has initial capacity for 58,000 m3 of refined products and crude oil storage
survive at prices north of $70 a barrel have been widely confounded by the industry’s ability to relentlessly innovate, reduce inefficiencies and drive down the breakeven price. ‘It varies from field to field but the breakeven for many is now around $40 per barrel, or even lower,’ notes Broekhuizen. ‘That’s down from $75 to $80 a barrel in 2014.’ As a result, the industry is no longer in survival mode; growth is back on the agenda. Energy consultancy Rystad Energy reckons the firmer price that followed last year’s OPEC cuts saw investors inject more than $100 million into the US shale industry, leading to a rebound in production, from 8.9 to 9.3 million barrels per day between November 2016 and May 2017. Analyst Espen Erlingsen of Olso-based Rystad reckons total investments in shale are expected to grow by around 50% this year. Indeed, in May 2017 the EIA’s estimate for US crude production
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in 2017 was raised by 90,000 b/d to 9.31 million bpd, and by 60,000 bpd to 9.96 million bpd for 2018. Crude production in the fourth quarter of 2018 is expected to reach 10.22 million bpd. EXPORT BOOM All this light sweet crude is now being sold into global oil markets. It’s only 18 months since the 40-year ban on exporting US crude (other than to Canada) was lifted and already US cargoes are being traded across the world to Italy, the Netherlands, Singapore and beyond, topping more than 1 million bpd in February. Indeed, statistics from the US Census Bureau show that China edged out Canada as the main buyer of US crude in February as the oil glut depressed prices enough to justify the shipping cost to Asia – and that’s without the shortcut through the Panama Canal. A narrowing spread between WTI and Dubai mean it’s increasingly viable to
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MARKET ANALYSIS l STORAGE IN THE AMERICAS
ship US crude to Asia. The US domestic oil glut hasn’t displaced imports; its Gulf Coast refineries need the heavy sour crudes of the Middle East and South America rather than the light sweet output of its domestic shale plays and thus the US remains a big importer of crude. The resulting shift of trade flows continues to reshape mid-stream infrastructure across North America, with import terminals repurposed for exports and new pipelines and storage facilities built to deliver new production to market. ‘We continue to have a tank storage building boom to accommodate production from across the country, with infrastructure going in to move it to the consumer,’ says Andy Lipow, president of Houston-based Lipow Oil Associates. He points out this isn’t just a Permian basin phenomenon. ‘All regions have participated in the efficiency drive, and ever-improving technology continues to lower costs throughout the industry so production is going to keep rising.’ Richard Nott, head of offshore and global projects at Lloyd’s Register, has also identified a construction boom. ‘There’s been a change of flow around US and Canada and many projects we’re working on now were import terminals and are now being repurposed for exports,’ he says. The last six months have seen a flurry of announcements of new construction to add further capacity along the Gulf Coast, including a joint venture of Magellan Midstream Partners and LBC Tank Terminals building 1.7 million barrels of crude oil and condensate storage adjacent to LBC’s existing terminal in Seabrook, Texas along with interconnecting pipelines and the potential to build another 3 million barrels of storage. Phillips 66 continues to expand its Beaumont Terminal, which now has 9 million barrels of crude and product storage capacity with an additional 1.2 million barrels of product storage planned to be in service by mid-2017. The facility is capable of exporting 400,000 bpd of crude or products, and this capacity is being expanded to 600,000 bpd. Oiltanking North America has purchased extra land to facilitate
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the development of a deepwater terminal in Texas to form a viable export/import/blending hub alternative in the Houston market. Two months ago, Fairway Energy started operations at its Pierce Junction crude oil storage facility, Houston, bringing online 7.5 million barrels of storage capacity, with construction of a second phase, to add another 2.6 million barrels, expected to get underway later this year. One company keen to make the most of the new opportunities presented by changing trade flows is Milliard Maritime, a privately-owned operator based near Mobile in Theodore, Alabama. The port features a large marine terminal, a 1,600 feet wharf, and bulk, liquid and break-bulk loading/unloading with easy rail, interstate and barge access. With a 300-acre greenfield site, Bobby Wein, head of business development, is keen to expand the facilities to include a tank farm. ‘Any cargo moving in or out of the US is very well suited for our footprint,’ says Wein. ‘The crude we process in the US is thick and heavy and the crude we pull up is light and thin. We want to be the solution provider based on our location.’ Dallas-headquartered Centurion Midstream has already broken ground on its strategy to match higher gravity crudes unwanted by most Gulf Coast refiners with growing demand for refined products in the newly reformed Mexican energy market. The trick, explained chief executive Tom Ramsey, the ex-head of North American crude oil marketing and midstream at Vitol, is to get the economics right. Centurion does this in two ways: first, by targeting the Delaware Basin, the cheapest in the US, where breakeven costs are a compelling $22 a barrel; and secondly, by taking barrels that don’t match the pipeline specs for shipping to the refineries at Houston and Corpus Christi and thus trade at a discount. ‘These light crudes are blended to pipeline spec but at a certain point the volumes over run the available blending opportunity, which creates the opportunity for us,’ explains Ramsey. Centurion buys these ‘distressed barrels’ for
its own simple processing – ‘much cheaper than spending billions on a refinery’ – for onward export to Mexico, where there’s rising demand for refined products. The company spotted this opportunity early, and got to work three years ago when the downturn first hit, enabling it to start piecing together the necessary midstream and downstream assets. These include crude oil storage and unit train transloading in Orla and Pecos, Texas, and unit train receiving, multi-commodity storage and refined products production and distribution at the Port of Brownsville, which lies just three miles from the Mexican border. ‘We’ve broken ground at Brownsville and we’re moving dirt to prepare the 250-acre site,’ says Ramsey. ‘We’re finalising the engineering and will then continue with dirt work to get the base set, going into full construction this summer ready for operations in Q1 or Q2 2019.’ MEXICAN ENERGY REFORMS CREATE NEW OPPORTUNITIES The company took a bet on Mexico’s energy reform: in 2014 the country enacted constitutional reforms that ended the 75-year monopoly of state-owned PEMEX in a bid to stem production declines and boost investment, particularly in its inefficient refining sector. Early reports are encouraging, with international oil companies entering the market both upstream and downstream. In a recent media interview, Pemex CEO Jose Antonio Gonzalez said there was urgent need for significant investment in storage and pipelines, citing a domestic study that estimated the midstream sector requires $15 billion in investment. The Pemex boss said the ‘opportunity is huge,’ with the potential for significant partnership opportunities because PEMEX owns valuable midstream assess such as real estate and port terminals. These opportunities are already being seized by international companies: in early May 2017 US refiner Tesoro Corp was awarded all of the petroleum storage and pipeline transport capacity in northwest Mexico. NAFTA: STILL HERE Mexico has long been a major partner in US energy trade. In 2015, it accounted for 9% of US crude oil imports. Although relations between the two countries have been soured by President Trump’s inflammatory comments, 2017 has perhaps brought a dose of reality to the table: funding of the controversial border wall was left out of April’s spending bill and as yet the pledge to tear up NAFTA has not been honoured. This is encouraging, say analysts at BofA Merrill Lynch Global Research. ‘Mexico is America’s largest buyer of natural gas and petrol. America is Canada’s largest buyer of crude oil. Power flows freely across the borders. Regionally, North America is almost energy independent,’ said the analysts in a recent research report. They point out, however, that a renegotiation of NAFTA could be positive for energy. ‘Tighter content rules in tax-free exports to the US could lead to more Mexican industrial activity and
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MARKET ANALYSIS l STORAGE IN THE AMERICAS
more US natural gas demand in Mexico,’ said the analysts. ‘Mexico’s energy reform presents a tremendous opportunity for US energy, technology, and infrastructure companies. So NAFTA stays and the world’s largest energy compact emerges from it, in our view.’ The other partner in NAFTA, Canada, is also inextricably linked through energy to the US. Rich in natural resources, Canada is one of the world’s five largest energy producers, boasting 173 billion barrels of proved reserves, the third largest in the world thanks to its vast oil sands deposits. It is the main source of US energy imports (oil, gas and electricity). These ties are set to be cemented in the coming years as new pipelines come onstream, with cheap US shale gas powering Canadian refineries, such as Irving Oil’s 313,000 bpd plant in Saint John for example, while the output of Canada’s oil sands projects heads south of the border. In May 2017, Kinder Morgan announced plans to raise about $1.75 billion in an IPO of assets in Canada, including the Trans Mountain pipeline and expansion project, the Puget Sound pipeline system in Washington State, a condensate pipeline, along with storage and terminals along the pipeline routes. Elsewhere in Canada, terminal giants Vopak has formed a joint venture to develop Ridley Island Propane Export Terminal (RIPET) off the west coast of Canada. The project is to be designed to ship 1.2 million tonnes of propane per annum, with 96,000 m3 of storage capacity. The facility is expected to be commissioned in Q1 2019. PANAMA: EXPANDED OPPORTUNITIES Transit times are certainly important when it comes to market share. In 2016, the Panama Canal was expanded to take larger vessels, although the biggest ships, such as Very Large Crude Carriers (VLCCs) are still unable to transit the canal. Following the expansion, there’s been a surge in transits, particularly of liquefied natural gas carriers, with 5.2 LNG vessels transiting the canal per week, far more than the original forecast of one weekly transit. ‘It’s a big win for
LNG,’ notes Richard Nott of Lloyd’s Register. The shorter distance makes US LNG exports far more cost competitive in the Asian market: a transit from the US Gulf Coast through the Panama Canal to Japan cuts voyage time to 20 days, compared to 34 days around the southern tip of Africa. The savings are significant – as much as $0.30/MMBtu to $0.80/MMBtu lower – and will only bolster the US’s growing importance in global LNG trades. Terminal operators are positioning for the growth in shipping through the expanded canal. Vopak is building a new storage terminal in Bahía las Minas, strategically located to the Atlantic entry to the Panama Canal. The new terminal, which will be built by a consortium of FCC and Felguera IHI, will have nine storage tanks for marine oil, fuel oil and clean oil products. Work is expected to take 24 months to complete. COLOMBIA: PALM OIL AND PRODUCTS Changing trade flows are also impacting mid-stream map in South America as terminal operators identify niche regional opportunities. Houston-based Zenith Energy, for example, which is backed by private equity firm Warburg Pincus, already has one terminal up and running in South America. The Palermo terminal at the port of Barranquilla, Colombia has initial capacity for 58,000 m3 of refined products and crude oil storage and includes a newly built ship dock, six lane truck rack and accompanying infrastructure. Further build out of the site would expand storage to more than 400,000 m3. Earlier this year the company began working on building 120,000 barrels of palm oil storage for agri-giant Cargill. The project includes the construction of a new dyke, dedicated tanks with heating system, a dedicated dock line and truck loading. ‘We very early saw the growth in palm oil in Colombia as an opportunity for liquids storage and it’s always been part of our plan to capture some of that business,’ says Jay Reynolds, chief commercial officer of Zenith. This is a strategic location on the important Magdalena River, a main transportation artery in the country, with Palermo enjoying the naturally
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deepest draft on the river and well-positioned to serve one of the most industrialised parts of Colombia. Its position on the Caribbean coast of Colombia adds easy access to the US and Caribbean market, which is important for a company keen to provide modern, efficient logistics to meet fast-rising demand for refined products in Colombia. The company is in talks with customers about Phase 3, and will ‘probably make a decision at the end of this year,’ said Reynolds. ‘We are talking to a number of customers and their plans would influence what to build and what volume.’ The company is also eying the progress of energy reform in Mexico, where it has signed an agreement to develop oil storage and distribution facilities on CEMEX’s vast real estate portfolio. CEMEX, one of the largest companies in Mexico, has more than 90 storage and distribution locations across the country, in both inland and coastal cities, most of them connected to the Mexican railroad network, many with unit train capability and include both operational and dormant locations. ‘We’re very excited and optimistic about Mexico,’ says Reynolds. ‘And we have a head start through our strategic alliance with CEMEX.’ BRAZIL: LIGHTER CRUDES BOOST EXPORTS Brazil traditionally had a reputation for pumping heavier grade oil but increasingly its output is lighter and sweeter, winning favour from buyers in China and India. Indeed, exports are rising to both countries as major investments in ultra-deepwater fields start to pay off: overall, consultancy Wood Mackenzie forecasts 2017 exports will hit nearly 1 million bpd, up from just under 800,000 bpd last year. These increased exports should help drag the country out of a protracted recession, and boost appetite for imported refined fuels. The rise in exports and imports requires additional investment in new infrastructure. Vopak, for example, is adding 16 tanks as part of an expansion of its Alemoa terminal at Port of Santos. The additional tanks will lift total capacity to 235,000 m3 and five more truck loading bays will be constructed, capable of handling up to 130 additional trucks per day. The project is expected to be commissioned by Q1 2019. The new capacity will primarily be used for ethanol exports and the imports of fuels such as diesel and petrol. Across the Americas, investors are watching the oil price. The consensus appears to be for a gradual recovery as under-investment and delayed capex begins to tell on global inventories. The recovery will be dampened, however, by the sheer volumes predicted to flow onto the market: the EIA expects prices to remain below US$60 through the end of 2018. This number will give comfort to producers who still make money at this level, and should see further investment in pipelines, storage and infrastructure to shift the relentless tide of crude to new markets.
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
MARKET ANALYSIS l PETROL AND DIESEL DEMAND
RESURGENT PETROLEUM INDUSTRY DRIVING STORAGE REQUIREMENTS T
he US petroleum industry is experiencing a resurgence. Demand for road fuels has surpassed pre-recession levels, while exports have soared. Record throughput at refineries has been matched by the growth of US crude oil production. The effects of the lifting of the crude oil export ban, a long anticipated policy change, are now being felt. Not only is the US petroleum industry experiencing strong growth, the economies of other western hemisphere neighbours are also contributing to rising petroleum demand. The World Bank notes that after six years of slowdown, Argentina and Brazil are coming out of recession, Mexico will keep growing, and Central America and the Caribbean will grow faster than in recent years. New vehicle sales have steadily increased since the recession in 2009 (see picture 1).
Source: Federal Reserve Bank of St. Louis
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Recent growth in US crude oil production has led to new midstream and storage investments
In the past, additional fuel demand from new vehicles has been somewhat countered by the fact that they are more fuel efficient than the vehicles they replace. However, moderate fuel prices have encouraged the average US consumer to buy ‘thirstier’ utility vehicles at the expense of more fuel-efficient sedans. To some extent, we are driving less fuel-efficient vehicles. All other things being equal, as the numbers of vehicles on US roads continue to grow, so does the amount of fuel required. Of course, although this does not directly translate into new aboveground storage capacity, it alerts the petroleum industry to positive economic trends and the possibility of needs for increased terminal capacity. CRUDE OIL PRODUCTION Recent growth in US crude oil production has led to new midstream and storage investments. Although the crude oil price collapse of 2014 slowed production, the US Energy Information Administration (EIA) forecasts US crude oil production will reach a record 10 million barrels per day in 2018, largely from new shale production in Texas. Shale oil is light crude oil that, due to present refinery configurations, will not immediately displace imports of heavy crude oil. Many US refineries were built to process heavy oil from countries such as Canada, Venezuela, and Mexico. Rapidly increasing production of light oil is driving massive investments in export capabilities at ports on the US Gulf Coast. Several established midstream and start-up companies are planning additional storage tanks and marine handling facilities to export crude oil produced in North Dakota and Texas. After a brief hiatus, tank construction crews are now fully occupied at field locations, rail
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MARKET ANALYSIS l PETROL AND DIESEL DEMAND
US refiner has leased over 300,000 barrels of storage capacity from PEMEX in northwest Mexico to create inroads to new markets. ‘As we get our feet on the ground, we’ll evaluate other opportunities to get into the Mexican market,’ Tesoro Petroleum’s CEO Greg Goff says.
Source: EIA
facilities, and deep water ports. However, the demand for aboveground crude oil tanks near Houston has been dampened by a new underground facility capable of storing 7.5 million barrels of crude oil or condensate. Fairway Energy Partners recently began operation of three underground storage caverns with pipeline connections to receive crude from US shale basins and outbound connections to refineries or terminals. Other underground facilities in Utah are expanding to hold liquefied petroleum gases (LPGs) for seasonal storage. LATIN AMERICA Demand for fuels in Latin America is creating the need for new tankage at both the dispatch and receipt ends of the supply chain. The liberalisation of petroleum markets in Mexico has developed at a much faster pace than expected. Although waterborne cargos have been the traditional point of entry for fuels into Mexico, rail deliveries are beginning to make a foothold. Using the same approach that the
industry established in North Dakota in the last decade, rail is seen as the most expeditious method for delivering fuels to Mexican markets. Several inland refineries in the US are considering investments in unit-train loading facilities to reach these markets. For example, Howard Energy, a young midstream company, has partnered with Kansas City Southern Railway to operate a new unit-train receiving terminal in Mexico. Several shipments of diesel have already been delivered from refineries in Texas to new facilities in central Mexico. New inland rail facilities do not appear to be impeding projected investments in marine terminals. The current import facilities at terminals near Tuxpan and Veracruz in Mexico are grossly undersized and in need of modernisation. Logistics infrastructure to move waterborne deliveries to inland markets is susceptible to theft and other costs. It is apparent that infrastructure investments in Mexico are necessary and US companies may be ready to take limited risks. A large
REGULATORY DEMANDS Exporting transportation fuels benefits US refiners in many ways. Not only can refiners now access distant markets, but the economic advantages include lowering RIN1 expenses and relief from costly Tier 3 petrol specifications.2 As shown in the following chart, in 2016, RIN costs added close to 10 cents per gallon to the domestic price of petrol and diesel. Exports do not carry this burden. Compliance with the Renewable Fuel Standard in the US continues to be driven by the Environmental Protection Agency’s (EPA’s) increasing requirement for other renewable fuels in addition to traditional corn ethanol. To accomplish this, small biofuels blending facilities are being planned at wholesale terminals to accommodate future ‘advanced’ biofuel requirements that will increase as a percentage of the total renewables requirement. While demand for new ethanol tanks may not increase, smaller specialty blending tanks will be required. This will result in increased production and logistics costs as biofuels displace traditional petroleum based fuels. CONCLUSION Despite increased regulation, the US petroleum industry remains competitive and poised for continued growth. The future looks bright.
REFERENCES 1 RINs are “Renewable Identification Numbers” and are required by the Renewable Fuel Standard for every gallon of gasoline and diesel sold in the U.S. Blenders of renewable fuels generate RIN credits and sell them to refiners. 2 Tier 3 EPA specifications became effective January 1, 2017. Refiners must produce gasoline with 10 parts per million of sulfur or less on average.
SOURCE: Platts, Baker & O’Brien analysis
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FOR MORE INFORMATION This article was written by Charles Kemp, vice president at Baker & O’Brien in Dallas, Texas. Baker & O’Brien provides investor valuations of petroleum assets, including refineries and terminals. www.bakerobrien.com.
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TECHNICAL NEWS
Technical news
All the latest terminal technical news from around the globe
CST creates manufacturing centre of excellence
Emerson brings TerminalManager solution to market
CST Industries is creating a global manufacturing centre of excellence at its Conroe, Texas facility.
Emerson Automation Solutions has released a single software platform for managing all terminal operational and commercial activity.
The move consists of investments in the Conroe facility, equipment and people, as well as transferring the manufacturing equipment from the Rincon, Georgia plant. CST is expected to begin the Conroe transformation and cease operations at the Rincon, Georgia facility. Brad Barkley, vice president of global operations, says: ‘Combining these two facilities into a centre of excellence allows us to deliver on our strategy and continue at the forefront of aluminium dome and covers manufacturing. ‘This move will create the world’s premier aluminium dome operation with state-of-the-art equipment, world-class lean manufacturing and highly skilled employees.’ Tim Carpenter, CEO, adds: ‘Decisions that directly impact the lives of our associates are extraordinarily difficult. The Rincon team is a talented, dedicated and loyal workforce and a solid support base in the Rincon community. We thanks them for their hard work. Transitioning away from this facility was not a reflection of the Rincon team, but an appropriate decision and a key piece of our strategy.’
TerminalManager provides a platform to manage the entire terminal business process, helping operators streamline the loading processes, achieve greater connectivity to customer needs and close books faster. The next-generation solution helps operators manage the entire terminal business process by managing customer contracts and orders through a web based portal. It efficiently plans and executes loading operations, manages book and physical inventories, charging for services and billing activity back to the customer. Pedro D’Ascola, general manager for Emerson’s remote automation solutions business, says: ‘With the release of TerminalManager, we continue to offer new ways for our customers to improve the efficiency of their operations, not just for loading and unloading operations but for the terminal business management process as well. ‘TerminalManager is built not only to move products, but to efficiently move information, which optimises the order to cash cycle for the terminal and helps streamline the customer’s supply chain logistics activities.’
AW-Lake Company introduces new mass flow meter SA Fire Protection A new MicroTRICOR TCM-100 Coriolis mass flow meter has been launched by AW-Lake Company. awarded upgrade project The new meter is the smallest TRICOR Coriolis meter designed for the accurate measurement of very low flow rates. This new mass flow meter is suitable for dosing, blending and batching in applications such as chemical injection, precision painting and coating applications, and batch processing associated with liquid or gas handling and dispensing. The new multivariable instrument reports mass flow, density, concentration, temperature, and volumetric flow in one device. Without any moving parts such as gears that require maintenance or can corrode and fail, the TCM-100 Coriolis mass flow meter uses smooth tubes through which material flows at rates as low as 5cc/min (300 grams/hr., .001 gallons/min). Unlike volumetric flow meters, the MicroTRICOR low flow meter measures mass instead of volume, providing for greater accuracy as the mass of a fluid or gas remains constant and is unaffected by changing process conditions such as temperature, pressure and viscosity. As a result, process engineers get truer readings in all conditions from the MicroTRICOR Mass Meter. In addition, the unique compact dual tube design
provides for a more balanced system with greater resistance to external vibration and pulsating flow. Offering fast response times, the MicroTRICOR meter deliverS high repeatability with long-term operations. With no filter requirements, the low flow mass meter requires little or no maintenance. Units are flushable and simple to clean. Having all wetted components made of 316L stainless steel, this meter is compatible with most fluids. Multiple connection types are available including NPT, AutoClave, and tubing. The TCM-100 Mass Flow Meter is suitable for high pressures up to 5,000 psi, and is EX certified with ATEX, IECEx, EAC certifications and a pending CSA rating. The MicroTRICOR Meter is sold with TCE transmitters that are available with analog, frequency pulse and status outputs. Transmitters can be ordered as panel mount or remote field mount versions.
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Oiltanking Amsterdam has selected SA Fire Protection for 15 foam manifold skids as part of an upgrade of its fire-fighting system. The project is due to be completed by the end of August 2018 and all practices and activities will be carried out at SA Fire’s factory in San Pier Niceto, Italy. The company will be responsible for the DCS installation and pre-commissioning of the fire panel, which will be interconnected with the instruments inside the foam housing. SA Fire will carry out in-house full functional tests on the whole installation using a hydraulic laboratory in SPN to measure flow rate, pressure and to verify the operation of the deluges valves. It will also test the foam proportioning equipment in order to validate the complete functionality under real conditions before the foam manifold skids leave the factory. Oiltanking Amsterdam has 1.6 million m3 and is connected to Schiphol airport via a 20 kilometre pipeline. In a statement SA Fire says: ‘This project confirms the strong position of SA Fire Protection as manufacturer of reliable fire-fighting systems for large scale international oil terminal operators. In line with the company’s future plans in the north European market, SA Fire will increase its presence across the region for the supply of fire suppression systems for terminal operators and refineries.’
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TECHNICAL NEWS
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL NEWS
Silverwing launches new ultrasonic inspection crawler Silverwing has launched Scorpion2, incorporating a range of improvements to its first remote-control ultrasonic crawler. The Scorpion has been successfully deployed for 10 years, however the company says that technical advances and increasing market demand required a complete technical redesign. Silverwing made improvements to the design and performance of the unit based on feedback from Scorpion’s large user base. Scorpion2 is approximately five times faster than its predecessor, measuring thickness at speeds of up to 150mm/s. The key benefits of the new version include a dry-coupled probe well, which removes the need for an external water source, a gimballed probe holder for inspection on uneven surfaces and a 50 meter umbilical, which removes the need for scaffolding. Additionally, Scorpoion2 has the ability for users to programme the length and pattern of scans for more flexibility. Scorpion2 has four permanent magnet drive wheels and two encoders, making it possible to compensate for the crawler’s drift from slippage and the weight of the cable. It also has a significantly sleeker design, making it easier and faster to set up than the original Scorpion. Edwin Van Der Leden, product manager for Scorpion2, says: ‘We packaged technologically-advanced features into an easy-to-use system that delivers highquality and reliable data. In doing so, we translated the customers’ needs into a new product that will have a direct impact on their daily life.’
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Agidens launches updated tank terminal management system Agidens has updated and renamed its terminal management system. The renewed version of E’vita, which has been renamed to ALINE, offers a better user experience as well as a range of new applications. It brings different systems, assets and people on one line by ensuring efficient communications through the synchronising of activities. Arnoud den Hoedt, general manager of Agidens Process Automation, says: ‘Every software package needs regular updates to allow operators and terminal owners the use of new technological developments to run their terminal in an optimal way. It has been a few years since the last E’vita update. With the launch of ALINE, we fill two needs with one deed: a renewed software with a new name.’ Additionally, the company is also working on new product launches to further digitalise terminals. The first version of AXCEL is being finalised. This product suite will increase the scheduling activities of the terminal. It is a modular system built up around an optimisation engine that uses a model of a terminal while keeping into account the planned order, available assets and workforces, but also the specific rules and constraints of the terminal.
www.koerting.de JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
+49 511 2129-221 · st@koerting.de
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TECHNICAL NEWS
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL NEWS
Inflammable pump solution for critical process locations On liquid tank storage farms, safety for employees and the environment is one of the most important issues, especially because it is in these plants where mostly critical or highly flammable fluids are handled. Plant operators and equipment suppliers are expected to establish appropriate precautions that will ensure the safe operation of technical equipment, as well as processes that assist in the detection and classification of such critical areas within the plant. Governments also have established guidelines. In Europe, for example, the ATEX-guideline describes how areas that present a dangerous atmospheres must be classified and it outlines components are allowed for use. The classification of certain areas within the plant as critical limits the type of equipment that can be used there. Electrically-driven pumps, for example, were traditionally not used in these areas because of their explosive properties. In recent years, suppliers of these products have introduced new versions that have received a Zone 0 rating making them applicable for critical process locations. However, the stigma remains and operators instead look for pump solutions where no electrical drives are used. In such areas of the plant, the Air Operated Double Diaphragm (AODD) Pump is ideal because of its inflammable properties. A Zone 0 -rated AODD pump can be used in high-risk atmospheres such as the top of petrochemical tanks. The area above a floating roof is often declared the most critical zone 0, which limits the installation of certain equipment that could prove flammable. An AODD pump that is placed there for rain water handling is equipped with a mechanical fluid level control that can operate autonomously on the roof top. Consuming
air once a certain water level has been reached, the control triggers the pump to operate. That level control, which mainly consists of a mechanical valve, also requires no electrical source and can be installed beside or directly mounted to the pump. An additional feature of the AODD pump is its ability to self-prime the fluid, which allows the pump to be flexibly relocated from a high critical area to a lower critical area (e.g. Zone 1). This in turn allows the installation of additional monitoring equipment, which typically needs an electrical source (e.g. sensors for diaphragm failure or stroke counting). The AODD pump offers an efficient solution in explosion-prone areas. In addition to its self-draining ability, small size and easy-install features, it represents a cost-effective solution compared to many electrically-driven pumps.
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EEMUA 159, Edition 5 launch
EEMUA 159 – above ground steel tanks EEMUA 213 – emission reduction EEMUA 183 – tank bottom leakage EEMUA 147 – refrigerated liquefied gases EEMUA 154 – tank demolition EEMUA 207 – double concrete tanks for liquefied gas … and more
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TECHNICAL NEWS
STORAGE SOLUTIONS YOU CAN COUNT ON As the world’s most experienced tank builder, CB&I supplies complete storage solutions to meet the needs of leading energy companies around the globe. Our integrated business model reduces project schedules, decreases costs, improves quality control and minimizes risk. Complete EPC Solution Global in-house engineering, procurement, fabrication and construction resources Lump-sum, turnkey projects Single point of contact Contact CB&I for your next storage project. ATMOSPHERIC STORAGE TANKS PRESSURE SPHERES LOW TEMPERATURE AND CRYOGENIC TANKS BULK LIQUID TERMINALS LOW TEMPERATURE AND CRYOGENIC SYSTEMS
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3 40M042017H
dependent Tank
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TECHNICAL NEWS
Elaflex welcomes New Zealand manufacturer
Elaflex has acquired a major stake in New Zealand based manufacturer Oasis Engineering. Oasis is an internationally operating specialist for valves and couplings used in the compressed natural gas industry. The company has established a strong reputation as a supplier of CNG components and systems for filling stations and gas delivery networks. It supplies standard products of their own design and customised or make-to order engineering parts as required to customers in more than 40 countries. Andy Cameron, managing director of Oasis, says: ‘This exciting partnership brings together two highly innovative companies both well respected in the fuel handling world. The result will be a tremendous improvement in the motorist’s user experience for alternative fuels like CNG, hydrogen and biogas.’ Stefan Kunter, MD of Elafex, adds: ‘The complementary product ranges mutually allow us to further expand our expertise with fluid energy transfer. Importantly, both organisations share similar values and visions such as our premium quality approach and close cooperation with customers, to constantly improve.’
387 507 504 511
439 514
554 558
519
285 286 290 283
548
549
288 284
561 564
Terminal Name
Country
Societe du Pipe-Line Sud-Europeen (SPSE) France Compagnie de Distribution des Hydrocarbures S.A.S. France Rubis Terminal SA (Stockbrest) France Raffinerie du Midi (Coignieres) France Entrepot Petrolier de Port la Nouvelle SAS (EPPLN I) France Rubis Terminal SA (Dunkirk) France Dépôt Pétrolier de la Côte d’Opale (DPCO) France Société Française Donges Metz (SFDM, Orveau) France Entrepôts pétroliers de la Gironde SAS (EPG) France LBC Bayonne France Rubis Terminal SA (Rouen) France CIM S.N.C. (Grigny) France CCMP (Nanterre) France CCMP (Pauillac) France LBC Marseille France Sea-Tank Rouen S.A.S. France Rubis Terminal SA (Strasbourg, SES D1) France CIM S.N.C. (Antifer) France LBC Le Havre France Dépôt de Pétrole Côtier (DPC Saint-Pol-sur-Mer) France Black Sea Terminal, LLC Georgia Channel Energy Poti Port JSC Georgia Batumi Oil Terminal Ltd. Georgia Unitank Holding GmbH & Co. KG (Raunheim) Germany Petrotank (Lünen) Germany Oiltanking Deutschland GmbH & Co. KG (Berlin) Germany 554 558 TransTank GmbH (Gelsenkirchen) Germany
Port
Website
Total Cap. (m³) No. Tanks
Marseille Fos www.spse.fr 2,260,000 Marseille www.lyondellbasell.com 122,600 Brest www.rubis-terminal.com 131,000 Coignieres www.raffinerie-du-midi.fr 152,000 Port la Nouvelle www.total.com 130,610 Dunkerque www.rubis-terminal.com 476,000 Dunkerque www.total.com 1,800,000 Orveau 214,000 Bordeaux 136,100 Bayonne www.lbctt.com 124,000 Rouen www.rubis-terminal.com 658,000 Grigny www.cim-ccmp.com 117,593 Nanterre www.cim-ccmp.com 115,000 Bordeaux www.cim-ccmp.com 395,600 Marseille Fos www.lbctt.com 118,000 Rouen www.sea-tankterminal.com 107,000 Strasbourg www.rubis-terminal.com 304,000 Le Havre www.cim-ccmp.com 640,000 Le Havre www.lbctt.com 104,000 Dunkerque www.raffinerie-du-midi.fr 130,000 Kulevi www.kulevioilterminal.com 320,000 Poti petrocasenergy.com 120,000 506 507 Batumi www.batumioilterminal.com 612,900 504 Raunheim www.unitank.de 171,000 508 511 439 518 Lünen www.petrotank.de 150,000 Berlin www.oiltanking.com 357,169 514 515 512 513 244,000 Gelsenkirchen www.transtank.de 516 517 519
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The updated 465 464 503 2017/18 terminal map lists the location of4981500 independent petrochemical tank 487 terminals worldwide. With so many mergers and acquisitions going on, this map is an excellent way of keeping track of the storage market. 448
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450 461 The map is free to 462 all484Tank Storage Magazine 451 486 495 483 501 476 A496subscription 470 subscribers. is just €210/$243 a 500 480 year and includes seven issues of the magazine, as 7 well as digital versions. 17
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S, P RD, P S, RD RD, P S, RL, RD S, B, RL, RD, P S, RL, RD, P RD S, RD S, RL, RD S, B, RL, RD, P RD, P RD, P S, RD, P S, B, RL, RD, P S, B, RL, RD B, RL, RD, P S, P S, B, RL, RD S, RD, P S, RL, P S, RL S, RL, RD, P B, RD, P B, RD B, RL, RD B, RL, RD, P
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TECHNICAL NEWS
Rosen offers new cleaning ecospeed service The Rosen group has introduced a new cleaning ecospeed service for high-velocity gas pipelines. Ideal cleaning performance is achieved when cleaning tools travel at lower speed, i.e. below 5 m/s. Running cleaning tools at higher velocity can lead to inferior performance of the tools due to high abrasion on discs and cups, which in turn leads to substandard cleaning. However, lowering the production speed of any asset also significantly impacts operations and financial performance In order to avoid any loss of performance and to ensure optimal cleaning efficiency, Rosen has developed the Rosen cleaning ecospeed service. As part of this new service, Rosen equips cleaning tools with a unique speed reduction valve that enables them to slow down to speeds typically between 3 and 5 m/s without necessitating a corresponding reduction in product throughput. Following deployment and retrieval of the tools, Rosen’s field service technicians analyse run perfor-
mance and cleaning efficiency, optimise tool set-up where necessary for subsequent runs, and refurbish and maintain the tools for future use. The mechanical valve achieves smooth run conditions, thanks to an active valve system that allows product bypass through the tool body. As the high-velocity gas passes, the forces acting on the rear of the tool are reduced
significantly, so that the tool is propelled forward not at the velocity of the gas, but rather significantly slower, allowing for more effective and controlled cleaning. Available for various diameters, the valve can also be utilised in dual and multi-diameter configurations. Tools are equipped with a release mechanism for safe launching operations regardless of the pipeline condition.
Life is about Choices ....... So is Death PATENT NO US 20160137405 !& !#'$ %0
“The Eliminator’’ Revolutionizing the Tank Industry
ADJUSTABLE DELTA P CRIBBING TOWERS Delta P Cribbing Tower Safe refuge during roof collapse
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www.deltaptechnology.com 1.800.807.8882 Houston, Texas • Ontario, California
MOST COMPANIES STAND BY THEIR PRODUCT... WE PROUDLY STAND UNDER OUR DELTA P CRIBBING TOWERS! JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL NEWS
Benko produces foundationless railcar platform Benko Products has custom designed a foundationless railcar platform for a major terminal operator in Canada. The operator wanted to upgrade their safe access and fall protection methods during the unloading of eight liquid railcars and decided to utilise Benko’s Green access and fall protection product line. Originally, employees were climbing the side ladders for each of the eight rail cars to open the top hatch, allowing the rail car to breathe during the unloading process. The company acknowledged that this practice was not safe for their operators, especially during the cold and snowy Montreal winters. The solution has to be foundationless to avoid disturbing an existing stone wall, which was over 100 years old. A Green foundationless railcar platform was designed and Benko mounted a common stationary platform to a skid with a concrete counterweigh securing the station in place. The solution prevented the site from having to go through the permit process and also avoided any need for civil work typically required permanent loading/unloading solutions.
Which do you feel safer with?
The Delta P Technology Was Created ..... To Save Lives!
The World’s top industry experts researched cribbing practices for many types of industries and applications, with special emphasis on AST collapsed floating roofs, which including root cause analysis from hundreds of AST accident investigations for more than a decade.
The Primary Goal of the Team was to find a solution in preventing floating roof collapses, injuries and fatalities during AST cleaning, inspection and repairs. After the research was concluded, the actual support weight of the different types of wood cribbing tower stacking methods, (2 stack and 3 stack), type of woods, and problems with using wood cribbing stacks were alarmingly established. The solution to prevention of floating roof collapses and fatalities has taken an additional three years of sound Professional Engineering teams, AST experts from Oil and Gas/Petro Chemical, sectors Safety Professionals, Confined Space Rescue Experts, Fire and Rescue Departments, NFPA, OSHA, MSHA, ASME and Tank Construction Companies from all over the world to develop the “ELIMINATOR” Eliminate chance, Eliminate Variables, Eliminate Death.
Wood Cribbing OR Delta P Cribbing Certified at 50,000 pounds VERSABAR, INC.
VERSABAR, INC.
11349 FM 529 Road, Houston, Texas, 77041 PHONE: 713-937-3100 FAX: 713-937-7222
Test Number: Test Date: Re-test Date: Test Type: Technician: Load Cells: Description:
CERTIFICATION OF LOAD TEST
JOB INFORMATION 17B029X Delta P Lifting Technology, Inc. PO DPT2017138 TEST INFORMATION VF-3403 3/10/2017 3/10/2018 Function Test Trey Olano DEDC2800333
Job Number: Customer: Order Number: Test Number: Test Date: Re-test Date: Test Type: Technician:
The cribbing frame was setup and tested in accordance with Versabuild DWG 17B029X-190-2006. The test loads below were lowered onto the frame and pulled to the specified side load:
Description:
Description
DP-50K-TYPE1 Dwg 17B029X-1001 and 1002: 6ft x 50000 lbs 80,641 6ft x 6.66ft (LxWxH) lbs
WLL
Test Load
Load Test Result Pass
The cribbing frame was setup and tested in accordance with Versabuild DWG 17B029X-190-2001. The test loads below were lowered onto the frame and each held for five minutes:
No deformations were visually noted after testing. The equipment should only be used in the configuration as tested with the total load less than or equal to the rated working load limit.
EQUIPMENT INFORMATION ID Number FA8011
JOB INFORMATION 17B029X Delta P Lifting Technology, Inc. PO DPT2017138 TEST INFORMATION VF-3404 3/10/2017 3/10/2018 Non-Destructive Proof Load Trey Olano
Test 1: 80,641 lbs. Test 2: 106,439 lbs.
Test 1: 54,925 lbs. compression/17,100 maximum side load Test 2: 80,641 lbs. compression/26,800 maximum side load
Level
NDE Report#
NDE Date
NDE Type
NDE Result
3
-
-
-
-
EQUIPMENT INFORMATION ID Number
Description
WLL
Test Load
FA8011
DP-50K-TYPE1 Dwg 17B029X-1001 and 1002: 6ft x 50000 lbs 106,439 6ft x 6.66ft (LxWxH) lbs
Load Test Result Pass
• • • • • • •
WILL NOT come apart during lateral roof movement and collapse (rotation) Easy to Install, Easy to Relocate and Reusable Does not block the visibility of the entrants from the attendant Coated for longevity and easy decontamination Adjustable from 3.0 to 6.8 eight feet and can be customized tank specific Economically Ergonomically and Environmentally friendly ISO 9001 Certified at 50,000 pounds with a 2.1 Safety Factor
Save Trees, Save Time, Save Money, Save Lives, ... Everybody Wins
11349 FM 529 Road, Houston, Texas, 77041 PHONE: 713-937-3100 FAX: 713-937-7222
CERTIFICATION OF LOAD TEST
Job Number: Customer: Order Number:
Delta P Cribbing Towers Safer ... Stronger .... Faster .... Cheaper
Level
NDE Report#
NDE Date
NDE Type
1
566922-14
03/11/17 Post
NDE Result
Size Options
Delta P Cribbing Towers Safer Height
Weight Capacity
Catalogue Number
Name
Standard Adjustable
6.0’ 6.4’ 6.8’
50,000 Pounds
SDPl
Eliminator
Adjustable Risers Heights
3.0’ 4.0’ 5.0’
50,000 Pounds
ADPl
Stretch
Pass
Fast and Easy to Assemble weighs 700 lbs. Easy to Relocate WARRANTY
WARRANTY
This is to certify that the equipment described herein has been subjected to the test described on this document. However, in subjecting this equipment to the test, Versabar, Inc. does not warrant the product in any manner or certify it for any specific use whatsoever. Test Results Approved by: Michael Ramirez on 3/13/2017 11:32 AM
Page 1 out of 1 for VF-3403
This is to certify that the equipment described herein has been subjected to the test described on this document. However, in subjecting this equipment to the test, Versabar, Inc. does not warrant the product in any manner or certify it for any specific use whatsoever. Test Results Approved by: Michael Ramirez on 3/13/2017 10:49 AM
3/13/2017 11:32:48 AM
Page 1 out of 1 for VF-3404
3/13/2017 10:49:27 AM
Delta P Cribbing Towers takes 3 people just 5 minutes to assemble and install each tower. JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TECHNICAL FEATURE l LNG STORAGE
FINITE ELEMENT ANALYSIS IN CRYOGENIC AND REFRIGERATED TANK STORAGE DESIGN
L
NG as a sustainable source of energy has become a safe and economical solution for countries not connected to a gas supply pipeline network. Bulk storage of LNG is usually achieved via the use of low pressure refrigerated storage tanks operating at cryogenic temperatures at each end of the supply chain. These cryogenic storage tanks are also needed for energy suppliers using peak shaving tanks to cover peak demands and bunker stations located at harbours to supply vessels. In the early years, LNG was stored in single walled steel tanks, subsequently double containment steel walled tanks were introduced to contain LNG in the event of spill from the primary or inner container. Today, due to location and safety considerations, full containment (FC) storage tanks have become the industry standard for the storage of LNG. The design of a LNG storage tank is a challenging task as international codes for design (e.g. EN14620 and API620) often lack sufficient precise descriptions for the analytical procedures which need to be applied in the design. With almost two decades of experience and designing more than 100 storage tanks, Technodyne International (a member of the TGE/CIMC Group) has developed analysis methodologies supplemented with finite element analysis (FEA) using ANSYS to design cryogenic and refrigerated storage tanks. PRINCIPLE REQUIREMENTS The general arrangement drawing (Figure 1) shows the principle components of a full containment (FC) LNG tank. The design temperature of LNG storage is -165°C. The tank is insulated with rigid cellular glass block insulation beneath the inner tank, a layer of fiberglass insulation on the suspended deck and expanded perlite together with a resilient fiberglass blanket in the annular space between the inner and outer tank walls. In the event of inner tank leakage or spillage the base slab and the bottom corner of the outer concrete wall
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Fig 1. General arrangement for FC LNG storage tank
are protected from cryogenic temperatures by an insulated 9% nickel steel thermal protection system (TPS), in accordance with the codes. The inner tank contains the liquid and is an open top cylinder made from 9% nickel steel to meet the low temperature ductility and impact requirements. The concrete outer tank must retain the liquid in the event of a spill or an inner tank failure. The outer tank dome roof comprises a concrete shell and a carbon steel liner. The outer tank provides the gas boundary during normal operation. An aluminum suspended deck is hung from the inside of the roof to support the roof insulation system.
OUTER TANK ANALYSIS SYMMETRIC AND NON-SYMMETRIC ANALYSIS The loads on the outer tank and TPS are mostly axisymmetric and therefore two-dimensional FE model could be used. However, since some loads such as seismic, blast and wind are non-axisymmetric, Technodyne has developed a technique using a three-dimensional finite element model in ANSYS required for
normal, seismic and accidental load cases. The model contains shell elements representing the concrete outer structure including the buttresses and appropriate boundary conditions to simulate the foundation behavior. To assess the response of the tank under construction, testing, normal operating and accidental loadings and to verify the design, individual load cases are modelled separately. The results are combined numerically with appropriate factors for the load combinations required by code and good engineering practice. Exceptions are made for interactive loads such as thermal combined with mechanical where the load cases cannot be combined numerically. In these cases a separate analysis is performed. The effect of concrete cracking is incorporated in the model by modifying the elastic modulus in appropriate directions to simulate the cracked sections. The modification of the elastic modulus is based on the ratio of the cracked section moment of inertia to the un-cracked moment of inertia. Figures 2 and 3 show the deformed shape of a typical model due to post-tensioning and internal pressure respectively.
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL FEATURE l LNG STORAGE
Fig 2. Deformation due to post-tensioning
Fig 3. Deformation due to service design pressure
With the addition of the inner tank and its liquid masses, seismic analysis is conducted using the ANSYS model. The seismic model assesses the response of the outer containment concrete tank to the 3D earthquake loading. A modal analysis is conducted on the 3D model and a spectrum analysis is performed using the defined spectrum. Figure 4 shows the deformation of the model under seismic loadings.
ensure a safe and compliant design. Under spill conditions, LNG from the inner steel tank will fill the outer concrete tank. For concrete outer containers without a liquid tight liner or coating, the liquid tightness of the concrete shall be ensured by means of a minimum compression zone of 100 mm, as required by EN 14620. At Technodyne, the analysis of the outer containment tank (concrete slab and wall) under product spill accidental condition (loss of containment of inner tank and failure insulation) is performed using non-linear finite element analysis in the following sequence. An axisymmetric finite element model with thick shell elements having temperature-dependent material properties is constructed. The purpose is to establish transient thermal profiles through the outer tank slab and wall for different duration times, under a range of different spill levels and different outside climatic conditions (summer and winter). The steady state temperature profiles from this analysis are used as the design temperature profiles in a non-linear mechanical analysis. The conduction and the atmospheric convective effect on the outside face of the wall are the primary concern of the thermal analysis. In convective heat transfer, some empirical equations are used to estimate the surface averaged Nusselt number, Nu. For the normal operating condition, the LNG is modelled as a constant temperature boundary condition on the inner tank surface. For the spill conditions, the LNG is assumed to have saturated the insulation between the inner tank and the outer containment. This condition is modelled as a constant temperature boundary condition on the inner surface of the concrete wall. The effect of the variation of daily solar radiation is considered in the thermal analysis. For the outer tank analysis the solar radiation is also idealised as a change in ambient temperature of the roof and slab relative to the wall. Figure 5 shows the thermal profile in the concrete wall and slab in
winter and under high level spill condition. Due to the fact that the thermal stresses in a concrete section are dependent on the other stresses in the same section, caused by mechanical loads, they cannot be dissociated from them. As cracks develop the effective stiffness of the member is reduced causing relaxation in thermal bending moment, therefore the results from the model explained above (thermal distribution through the outer tank) plus non-thermal loads (dead load, vertical and horizontal post-tensioning, hydrostatic load and vapour pressure) are applied to a three-dimensional model to establish the stresses in the concrete under thermal and non-thermal loads during spill conditions. In this model, the non-linear properties of the concrete are modelled to represent the cracking and the compression of the section. The reinforcement is also taken into consideration in the model. Nonlinearity in the concrete is expected during a spill and therefore the only reasonable way to model the correct stress state and the damage state of the concrete at the time of spill is to incorporate the relevant loadings into spill scenario analysis. Worst case climatic conditions are also considered in the boundary conditions. CONCLUSION Having designed in excess of 100 storage tanks worldwide, the experience of Technodyne has shown that the application of FEA modelling is an efficient and effective method of verifying cryogenic and refrigerated storage tank design. This enables robust, safe and code compliant design.
FOR MORE INFORMATION This article was written by Dr. Mahmood Tavallaee, structural analysis engineer, Technodyne International, a member of TGE/ CIMC Group
Fig 5. Thermal profile in the concrete wall and slab
The forces and moments obtained from the above analysis are then verified against calculated section capacities. The ultimate limit state (ULS) check of the applied loadings are presented in moment-force interaction curves and the serviceability limit state (SLS) checks are carried out for verification of crack width opening under the normal operating situation. The analysis is validated against Technodyne’s in-house empirical calculation database. SPILL ANALYSIS A spill event (loss of inner tank containment) risk assessment is mandated by codes to
Fig 5. Thermal profile in the concrete wall and slab
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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Precision Engineered.
TECHNICAL FEATURE l XXXXXX XXXXXX
Premier Products.
When performance matters, aboveground storage tank owner/ operators call Matrix. Matrix protects your investment by offering innovative, effective products that help reduce overall operating costs, increase safe operation and improve compliance and conformance.
866 367 6879 | matrixappliedtech.com 64
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL FEATURE l XXXXXX XXXXXX
FlowDome™ Aluminum Geodesic Dome Roof
Matrix Applied Technologies’ FlowDome™ geodesic dome roof is the result of over 25 years of practical tank equipment experience by in-house engineers. The smooth dome surface allows rainwater to flow over the dome without pooling and finding leak points.
Skin & Pontoon Floating Roof
Both the Heavy Duty Pontoon Aluminum Internal Floating Roof (IFR) and Full Contact have been designed for maintenance free service. Pontoon IFRs are available as all aluminum, all stainless steel and as a combination (hybrid) of both options. IFRs can be cable or chain suspended from steel fixed roofs or from Matrix Applied Technologies geodesic dome roofs.
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TECHNICAL FEATURE l TERMINAL AUTOMATION
OPTIMISING TANK TERMINAL OPERATIONS: FROM INSIGHT TO DIGITALISATION
T
hese days, it is hard to find an article about industry and technology which doesn’t mention Industry 4.0, big data or the Industrial Internet of Things (IIoT). If you believe the hype, everything will be connected, everything will be automated and all operations will run super efficiently. Cars will drive themselves and drones, not field operators, will carry out hazardous inspections. The purpose of automation has always been to optimise efficiency, quality and safety. The promise of Industry 4.0, big data and IIot seems to be that even automation itself will be automated through artificial intelligence, machine learning, smart devices and selfhealing mesh networks. In reality however, there has been much less implementation than the hype would have you believe. The problem is that most people feel overwhelmed by the barrage of new technologies coming at them. They are bombarded with technical and functional specs of an ever-increasing set of options and solutions for every possible challenge imaginable. The result is that people fail to see the actual benefits or added value that these technologies could offer to their organization. They are presented with technological solutions looking for a problem, rather than with solutions to the problems or challenges they actually face in day-to-day operations. True opportunities for optimisation remain hidden, because they are clouded by questions such as ‘where do we get started?’, ‘which technology should we use?’ or ‘how can we integrate this with our legacy systems’. In order to reveal the true potential of these new technological solutions, a thorough understanding of the business and the challenges the organisation faces is needed. This, too, is not an easy task. On the one hand, vendors typically know their own products very well, yet they often lack sufficient understanding of their customers’ business and challenges. On the other hand, people within the organisation are often so engrossed in habits and
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day-to-day operations that they have become unable to see the opportunities to do things differently. This is why organisations can benefit greatly from hiring consultants, who are driven by providing expertise and advice, rather than by selling products and solutions. START WITH UNDERSTANDING The role of a consultant is to gain insight into the customer’s operational challenges and to identify opportunities for optimisation. For this, the consultant brings in-depth expertise in certain fields of knowledge to the table. On the one hand, the consultant captures the customer’s procedures, knowledge and experience and on the other, they help the customer think outside the boundaries of the ‘normal way of working’. The consultant will challenge the status quo and the established way of doing things. They will identify the discrepancies between the official procedures and the way people actually work. Consultants will apply their expertise to various layers in the organisation (from corporate management to maintenance technicians) and to different parts of the decision-making process (from long-term strategic master planning to day-to-day field operations). In sparring with the customer, the consultant identifies those elements that really impact the business, and where opportunities for optimisation can be found. They assist management in identifying appropriate KPIs and provide advice regarding the IT and automation systems needed to monitor and control the KPIs. OPTIMISING TANK TERMINALS Looking at the tank terminal industry, everything starts with the primary activities of product transfers and product storage. For this, the terminal needs infrastructure such as tanks, pipelines and pumps, which require significant capital expenditures. It also needs people to operate the terminal and it needs energy to power the pumps, the tracing and so on.
Maintenance activities are needed to keep the terminal safe and operational. It goes without saying that the terminal needs to operate according to environmental, health and safety regulations if it wants to stay in business. Furthermore, it must provide excellent service at competitive prices if it wants to attract and retain its customers. A consultant focusing on operational excellence will look at which activities add value and which don’t (or which even subtract value). One factor, which can greatly affect both revenue and costs, is throughput time, i.e. the time a transport unit spends at the terminal for an order to be fulfilled. In this industry, where quality of service is often considered the main differentiating factor, a terminal that offers quick turn-around times and safe operations will do better than a cheaper, yet unreliable terminal where demurrage charges abound. Lower throughput times lead to satisfied customers and the ability to do more business with the available assets whereas high throughput times lead to dissatisfied customers, demurrage charges and an opportunity cost for orders that could not be processed because of the unavailability of the asset. The operational excellence consultant will analyse historical throughput times and their variation by looking at causes for delays but also best practices. In some cases, they will have to conclude that not enough information is available for a proper analysis, and the first order of business is to start monitoring those activities. An operational excellence analysis may also look at the operational processes, including how an operator or technician perform their tasks. The result may show ways to optimise the process and in some cases the opportunity for optimisation will require a new way of working (i.e. changing the process flow) or an investment in infrastructure or IT equipment. If, for instance, there is no data on the activities of external surveyors, and these surveyors seem to have an important impact
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL FEATURE l TERMINAL AUTOMATION
on the throughput time of orders, the consultant might suggest investing in an identification and time registration system for the surveyors. Data from such a system could then be used to minimise delays caused by the surveyors from demurrage charge calculations and to increase the performance level of said surveyors. Accordingly, the consultant may suggest implementing a 5S programme to reduce the time spent by operators looking for missing tools and equipment. Other suggestions may include implementing workflow management to avoid operational mistakes or installing HMI displays at loading points to reduce the time spent by operators driving back and forth to the office to pick up the next orders. A consultant specialised in maintenance and reliability will look for inefficient maintenance procedures and may perform a criticality analysis to optimise spare parts stock management. They may offer training to technicians on how to better perform certain maintenance tasks. The consultant can help evaluate the benefits of implementing an asset management application, select a fitting asset management application and assist in designing the optimal asset structure in the application. The consultant can help increase asset reliability and availability by adjusting the maintenance focus from corrective maintenance to predictive maintenance. This is one of the areas for which the latest IIoT developments (such as cheap, wireless condition monitoring of electric motors for example) offer great potential for improvement. By finding the right issues to focus on, and selecting the right tools to monitor and control these issues, the maintenance consultant can provide great value by improving asset availability, which in turn helps improve customer service and client satisfaction. ENERGY COSTS A final example is energy. Since energy costs continue to rise, and given the sustainability targets that many organisations are trying to achieve, an energy management consultant may also provide significant value to a tank terminal. Energy management may start with an energy audit, which aims to understand and reduce the energy consumption on-site, but it goes well beyond that. A specialised energy management consultant can help to determine the proper EnPIs (energy performance indicators) for the organisation as well as the energy monitoring concept and the required monitoring and reporting application. In addition to helping lower overall consumption, the consultant also assists in optimising the energy consumption profile and its impact on the energy contract and invoice. Depending on the needs of the client, the consultant may even offer advice regarding energy purchasing strategies, implementation of peak shaving or demand response. The consultant makes the difference by identifying the functional needs of the system and selecting the appropriate solution. While some organisations can get by perfectly with a simple, quarterly spreadsheet-based report, others may benefit from a SCADA-integrated energy monitoring platform with automated peak-shaving or demand response functionality. CONCLUSION The tank terminal industry still offers plenty of opportunity for automation and digitialistion, but it is important to remember that they are not goals in themselves, but rather a means to an end. By combining consulting services with the implementation of new technologies, companies can make smart choices to ensure that the end is full of opportunity.
FOR MORE INFORMATION This article was written by Tom Capiau, innovation manager and business development manager consulting at Agidens. www.agidens.com
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08.05.2017 10:32:54
TECHNICAL FEATURE l TERMINAL AUTOMATION
HOW TO AVOID BUILDING A NEW 10-YEAR-OLD TERMINAL Five experts from Emerson share their thoughts on technologies available that could significantly improve terminal operations
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s an industry, it’s common to see new terminals and expansion projects that by some measure are 10 years old the day that they are commissioned. One root cause is a hands-off approach to new technologies. Add to that the aging workforce set to retire and the new technologies are being left to their millennial successors to implement. There are many reasons for a hands-off approach from 1) ‘we have always done it that way’ 2) ‘new technologies are too expensive’ 3) ‘resources can’t maintain what we have, let alone new technology’ or 4) ‘just get it built and we’ll optimise it afterwards’. Recently, Emerson received a request from a customer who wanted to buck the trend and understand what technologies are out there that they should consider. Their request was driven by market conditions, which are favourable today but they expected to see tightened – in other words ‘can we invest now to gain a competitive edge in the future?’ A cross section of experts from Emerson share their thoughts on technologies that could significantly improve terminal operations.
Operators are also reactive to tank pressure control problems rather than proactive
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or worse sending operators into potentially unsafe situations. When contacted to solve a tank pressure control problem, it is rarely already diagnosed down to a single device, but more often the effect of the problem. For example, the top three effects of poor pressure control that are encountered are high blanketing gas usage, high maintenance costs, and poor product quality typically a result of product oxidation. Operators should start by getting visibility to what the tank top pressure control devices are doing. On the safety side, begin monitoring the devices being used as the last line of defense. Depending on the tank this could be the emergency pressure relief vent (EPRV) or a large pressure vacuum relief valve (PVRV). When a device is being used as a last line of defense operators should be aware if it is not functioning properly so that they can take proper action to resolve the problem. Next, begin monitoring the tank pressure 02
WIRELESS TANK PRESSURE CONTROL Michael Calaway, Fisher Regulators and Flow Control Products Historically, tank pressure control products such as pressure vacuum relief valves, emergency vents, and tank blanketing regulators have been forgotten about or ignored. A survey conducted by Emerson in 2014 showed that many tank operators use external gas detection and visual inspection as a primary method of detecting tank pressure control problems. Operators are also reactive to tank pressure control problems rather than proactive. This means that the industry is relying on ‘after the fact’ detection of events
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even as fluids change temperature and pressure causing the volume to expand and contract.
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WIRELESS ROOF TILT MONITORING Ulf Johannesson, Rosemount Tank Gauging
01 & 02 Wireless regulators and PVRVs provide control room visibility and reduce operator trips to the field 03 Coriolis helps terminal operators reduce maintenance activities while improving confidence in measurements 04 Just one roof tilt event can justify the cost of an avoidance solution 05 Wireless pump health monitoring provides a cost effective method to avoid unplanned failures
and the devices that control this pressure. Using wireless position monitoring technology, tank operators can now monitor the position of their pressure control devices. This position indicates along with tank pressure measurements vital information for detecting, troubleshooting, and even preventing pressure control problems. It seems simple but recently Emerson saw a project where the insurance costs alone dropped by 40% by adding wireless tank protection methods.
uled maintenance costs that other metering technologies require. They also employ advanced internal diagnostics, like the micro motion smart meter verification, or SMV, that indicates when the meter is measuring accurately and when it might not be, whether because of unexpected damage to the meter itself, or even just because of a process upset like vapour in the line. In terminals that receive from multi-product pipelines, transmix can be reduced by using Coriolis meter density and mass flow rate measurements together to control divert valves at the precise moment. This reduces contamination of product in storage by transmix, while at the same time not sending perfectly good product off to the slop tanks resulting in needless reprocessing. Recently, Coriolis meters have been used for leak detection of the interconnecting piping system because they measure mass flow directly. Mass flow measurement makes the whole system easier to monitor for leaks,
THE UNTAPPED BENEFITS OF CORIOLIS Marc Buttler, Flow Solutions With the latest in modern flow measurement technology, opportunities exist for improving terminal operations. Coriolis meters provides the ability to measure fluid density simultaneously with the flow measurement and is a great online tool for monitoring product quality and consistency. The density measurement also provides an instant warning if vapour or cavitation should occur indicating that there may be a problem to investigate with a pump or seal upstream. One of the key benefits is that Coriolis meters require no maintenance, so they instantly save 100% of the ongoing sched-
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Automating what was previously a manual task can also help operators meet health and safety regulations
More than half of the world’s larger tanks used for storing common petroleum products have floating roofs. Floating roofs offer environmental and economic benefits over fixed roofs without the need for vapour balancing and recovery. However, the risks of floating roofs sinking, tilting, leaking and sticking is often overlooked leading to costly structural damage and major environmental and safety risks. Given these various issues that can affect floating roofs, it is vital for operators to be provided an early warning, should an abnormal situation occur. An automated monitoring solution involves level instruments being installed at multiple points. This provides the advantage of continuous surveillance and real-time verification that the floating roof is operating as it should. There are two options for where these instruments can be placed - either on top of the tank, or on the floating roof itself: 1) Three non-contacting radars (NCR) such as Emerson’s Rosemount 5900 series are installed, mounted at 120 degrees from each other. The presence of roof tilt can be tracked by comparing the level value from all three radars. This non-contact solution is highly accurate and reliable. It is suitable for any size of tank, and can be retro-fitted to existing tank gauging systems. Its functionality as overfill protection is a further benefit, along with the redundancy of the level measurement. 2) Three wireless and battery-powered guided wave radars (GWR), such as Emerson’s Rosemount 3308, are installed on the roof. The have probes penetrating through the roof and into the liquid below. Potential roof tilt is tracked by comparing the immersion levels of the probes into the liquid product. Using this solution, alarms can be generated for issues with not only tilting, but also buoyancy and roof sticking or sinking. An automated monitoring solution provides operators with 24/7 surveillance and realtime verification that the floating roof is operating normally. Automated solutions offer an improved means of maintaining the integrity of the roof, helping operators adhere to the recognised industry standard API 650. Automating what was previously a manual task can also help operators meet health and safety regulations. It provides a significant risk reduction compared to manual inspections, for a relatively low investment. WIRELESS PUMP HEALTH MONITORING Mark Granger, Reliability Solutions Scheduled maintenance versus conditioned based monitoring for pumps is still pervasive
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and management of the terminal’s inventory and commercial activity. Fully automating the loading process from entry gate to exit gate is a core capability of most terminal management systems. Advanced features can manage and optimise truck traffic within the terminal and before the trucks arrive. Terminal operators have achieved real gains in throughput by implementing terminal management systems such as Emerson’s TerminalManager to manage their loading operations, with 15% to 30% improvements of terminal throughput over the baseline. In addition to managing truck loading, advanced terminal management software systems provide a single integrated platform to manage the entire terminal business process: bringing in customer orders, executing the loading operation, charging for services, managing inventory, and billing activity back to the customer. This eliminates manual processes between disparate systems, shortening the month-end closing process from 10 or more days to as few as two or three days. These new systems are built not only to move products but to efficiently move information which in turn optimises the order to cash cycle for the terminal and helps streamline the customer’s supply chain logistics activities. With today’s modern, integrated terminal management systems, terminal operators have the tools they need to reach new levels of business performance, customer satisfaction, and overall profitability.
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in the terminals world and we continue to see pumps run to failure resulting in disruptions to operations and potentially hazardous situations. In Europe, the ATEX 95/137 Directives for the identification and assessment of explosion risks has customers looking for ways to meet the requirements of the Directive while continuing to keep legacy equipment in lieu of a costly replacement program. An easy and cost effective method for remotely monitoring the health of pumps is the addition of wireless temperature and vibration transmitters to the pump tied into a wireless gateway. One wireless vibration transmitter can monitor both the pump and the motor to provide very early notification of problems that if left alone will result in unexpected downtime, costly repair, and potential loss of containment. The measurement signals are automatically processed in the transmitter and sent for immediate and early problem notification. Maintenance can then remotely analyse using predictive diagnostics to determine the specific pump performance issues and needed maintenance activities to prevent unnecessary downtime. The wireless gateway also eliminates the need for hard wiring back to the control room reducing installation costs
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as well as providing a wireless network that other measurement points can be added to. INTEGRATED TERMINAL MANAGEMENT SYSTEMS Aaron Boettcher, Automation Solutions For terminal operators, efficiently maximising the throughput of the terminal is critical to remain as key suppliers to their customers and to be financially successful. Surprisingly, many terminals are still operating without an integrated terminal management system to plan and manage the loading/unloading operations and – more importantly – to provide visibility
CONCLUSION These are a few technologies that are available that provide tangible benefits to terminals operators. Wireless in general is having greater acceptance than even two or three years ago as operators look to increase the flow of information from the field to the control room. In addition, Terminal management systems are continuing to focus more on connecting the field to the Enterprise in order to move information to facilitate a faster order to cash cycle.
FOR MORE INFORMATION This article was written by Chris Amstutz, director, tanks, terminals & transportation at Emerson Automation Solutions.
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TECHNICAL FEATURE l XXXXXX XXXXXX
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TECHNICAL FEATURE l PLASTIC TANKS
PLASTIC TANKS: FAREWELL TO ‘FIT AND FORGET’ Stefan Kukula, chief executive of EEMUA, explains how new, expert guidance on plastic tanks fills a much needed gap for users – improving safety and cutting costs PLASTIC TANKS: A POOR RELATION WITH A RICH FUTURE
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hile steel tanks used in heavy industrial engineering applications sustain consistently high levels of interest, their non-metallic cousins – plastic tanks – have consistently remained the poor relation. The industry’s approach to plastic tanks has often been less than enthusiastic, and is summed up in the phrase, ‘fit and forget’. Yet plastic tanks are not simply vessels to be consigned to tank farms and left alone. With a vibrant manufacturing sector, which has a strong emphasis on technology transfer and innovation, the technology used in their manufacture has moved forward considerably in the last few decades. Nowadays, plastic tanks can be designed to handle a wide range of chemicals from clean water to highly oxidising chemicals. Despite this, tank lifetimes are often still based only on manufacturers’ nominal recommendations. This risks failing to consider the specific usage conditions, leading both to in-service failure and the unnecessary scrapping of serviceable tanks. THE NEED FOR A RELEVANT, PRAGMATIC, AND PRACTICAL GUIDE EEMUA, a non-profit membership organisation, which helps users of industrial facilities improve safety, environmental and operating performance, had been monitoring this situation. While its own publication for steel tanks, EEMUA 159, ‘Users’ guide to the inspection, maintenance, and repair of above ground vertical cylindrical steel storage tanks’, has
become a de facto standard, it was clear that there was no comparable guidance for users of plastic tanks. With EEMUA’s members operating industrial facilities across all sectors, and with good links with equipment manufacturers, engineering consultants, standards bodies, and regulators, it could draw on a wealth of expertise. What was lacking, was a relevant, pragmatic and practical guide that would give users the information they need to know, or refer to, to be able to operate plastic tanks in a safe and informed way – and without hours of ad hoc research. The potential benefits for users were clear: safer operation and cost savings – as a result of better decisions, optimised operation, and more effective inspection and maintenance. For the industry the benefits would be: an opportunity to improve the image of plastic tanks and dispel their ‘low cost, low quality’ reputation, often more the result of poor in-service care than the quality of the equipment itself. MEETING THE NEEDS OF TODAY’S USERS EEMUA formed a working group comprising experts from the user community, their own storage tank committee, manufacturers, and the wider industry. Their aim: to produce a new publication presenting a comprehensive view, for both thermoplastic and GRP tanks, of all areas a user might seek guidance on, in turn helping reduce the risk of in-service failure and extend tank life where appropriate. The project began in 2013 and has led to a body of work covering materials, design, record keeping, the management of change, tank installation, commissioning, operation, inspection and maintenance, degradation mechanisms and failure modes, repairs, and end of life options. THE DESIGN PHASE: WHERE GOOD COMMUNICATION WITH TANK MANUFACTURERS COUNTS The design phase has not always escaped plastic tanks’ fit-and forget problems. Here the new guidance stresses the considerable importance of good, open communications with manufacturers and gives clear pointers about what should be included. It breaks these down into the stages of a ‘conversation’: making a distinction between items to specify, those to discuss, and design information provided back to the user. First, a user should provide details of the intended duty, product characteristics and operating conditions to the manufacturer. A detailed checklist is presented covering areas like possible blend variances and trace contamination, pH, flammability, the presence of exothermic or endothermic reactions, and whether oxidising agents are present. Volume, and fill-and-draw requirements are also important. For example,
Self bunded tanks
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the design requirements for a tank to be filled with 25,000 l twice a week, by air-pad, could be very different from one filled and emptied at a different frequency, by gravity; especially where oxidising agents are involved. Discussion with the manufacturer is key too, often involving questions such as a need to satisfy local standards or geographical considerations. But there are details to discuss too. Venting arrangements, for example: is a mist eliminator needed and where will the vent terminate exactly? And when the tank will contain oxidising substances, such as sulphuric acid or sodium hypochlorite, manufacturers will need to know whether the duty is storage only or involves other operations too. Once designed, the manufacturer must supply detailed drawings for customer approval, and, later, as-built drawings that include details of both the tank and its ancillary equipment, such as nozzles, pipe support, and manways. Users need to be in possession of the relevant design data, like chemical reduction factors, weights (full and empty), and flange standards. Manufacturers should also provide data on the materials of tank construction, as well as that for flange gaskets, valves, ultraviolet (sunlight) resistance, coatings and laminates. RIGOROUS RECORD KEEPING: THE BACKBONE OF GOOD PRACTICE It is crucially important to keep comprehensive records right through a tank’s life. The working group suggests that a tank data book (similar to that for steel storage tanks) is kept. Users who do this can avoid a raft of issues, and guard against failure due to missing historical knowledge. In the right circumstances, they can use it to achieve safe operation beyond a tank’s nominal design life. A well-kept data book’s benefits will significantly outweigh the costs. Users should consider their most practical means of recording and maintaining all relevant details, including duties, inspection, maintenance, modifications, and repairs; something that can be supported by relevant nameplates and the proper recording of management of change information. The data book is a single dedicated repository of information and must remain with the tank throughout its life. Users may prefer standalone records or those forming part of a larger system, but the key decision is what information to capture. A user can set a baseline by logging all manufacturer design information, materials of construction, approvals and certifications, installation techniques, inspection schedules and reports. And this can be enhanced by a record of photographs, internal and external, before use. However, it is often details of a tank’s history over its operational life that provide the edge when it comes to sound decision-making. Elements like excursions beyond design parameters, changes of chemicals, concentrations, or temperatures, modifications and repairs, resiting, and mothballing, all feature here. TANK INSPECTION: THE KEY TO SAFE OPERATION, LONGER LIFE, AND LOWER COSTS Well-kept data books, combined with regular inspections, by trained in-house or independent inspectors, allow users to compare the condition of a tank over time. This means they can make well-informed judgements leading to safer operation, longer life, and lower costs. A risk-based approach to frequency further helps ensure that tanks remain fit for purpose, and that defects are detected and addressed. Inspections start with a rigorous view of potential hazards and their mitigation. Inspectors should use safe systems of work, obtain the necessary permits, and ensure the tank is clean and debris free. Visual inspection is the main technique, and inspectors should plan for good illumination, and pay special attention to any previous repairs. Inspectors should also log any deterioration evidence, leaks and cracks, especially at connection nozzles and welded seams, where they might appear as micro-cracks in thermoplastic tanks. Any deformation and surface defects (including those on cladding) should be noted – mechanical damage, soft areas, blistering, crazing, discolouration and damp patches are the signs to watch for here. Distortion at the top of a vertical tank shell should be less than 1/100th of tank height; and, for GRP tanks, cylinder stiffening rings and any other components bonded to the laminate should be checked for liquid ingress.
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All types, all sizes
At tank bottoms, inspectors should look for stress fractures and leaks in external circumferential welds on thermoplastic tanks. On roofs, they should note any settlement, rippling, and pressure effects. Finally, in-tank measurement and sampling devices should be checked and calibrated, and drain points should be secure and capped, with vents clear from obstructions. Inspectors should then assess the associated equipment too including pipework, pumps, valves, filters, signage, tanker interlocks, firefighting systems, and emergency showers. As a complement to visual inspection, inspectors can employ available NDT methods. For plastic tanks these are generally used to examine identified or suspected problems in more detail, rather than as standard inspection techniques, which is often the case for steel. For hard-to-reach internal sections, like the undersides of tank roofs, borescopes or videoscopes can be deployed via ports and manways. While wall corrosion is less likely than in steel tanks, aggressive chemicals can affect wall thickness and corrosion-resistant layers. Callipers are an option for wall thickness measurement if both sides of the tank wall can be accessed, with cut-outs for nozzles and access ways often providing the means. Sacrificial coupons, submersed, then withdrawn and measured at regular intervals offer an alternative. Inspectors can also use low-frequency ultrasonics, which measure the time taken for sound to pass through a material at a known velocity, to detect differences in wall thickness to an accuracy of 5-10%. Ultrasound can also be used to detect voids, delaminations, and joint adhesive problems, with resolutions of about 60mm. Tap resonance techniques, which compare acoustic responses at different points, are an alternative for GRP tanks, to detect voids and delaminations in composites. At the end of an inspection users often want an overall categorisation. Those with mature inspection systems use a variety of schemes such as fail: where safe future operation has been compromised and the tank should be removed from service; unsatisfactory: where individual components may require rapid remedial action; satisfactory: where minor remedial action is needed and safe operation can continue; and good: where a tank is in full working order. WHAT HAPPENS NEXT? The working group has brought together the entirety of this work in the form of a new guidance document: EEMUA 225, ‘Above ground plastic storage tanks, a guide to their specification, installation, commissioning, inspection, maintenance, repair and disposal’, which will be presented at a forthcoming seminar.
FOR MORE INFORMATION www.eemua.org
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TECHNICAL FEATURE l TERMINAL AUTOMATION
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THE INTERNET OF TANKS W
hen talking about the latest technologies, the Internet of Things (IoT) is a buzzword. You hear it on the news, read about it in magazines or it is already in use. In a nutshell, the industry talks about making things smarter and making them communicate with each other in order to realise intelligent organisation and automation. Take the car industry as an example. Navigation tools are informed by sensors or even by other cars about traffic jams. Hence, the car automatically proposes an alternative route if traffic jams are ahead. Another IoT application are smart thermostats which can regulate the temperature by looking at electronic agendas concerning holidays, work or business trips and at the external temperature or the weather forecasts. Even cities are starting to rely on IoT by setting up smart grids or by installing street lights which can be turned on or off depending on traffic or people passing by. Why is the IoT becoming a more attractive way of working? One of the answers is efficiency. Coming back to the previous examples, rerouting enables the driver to reach their target faster by bypassing traffic jams. Smart thermostats help to reduce energy costs for heating and cooling. Smart street lights reduce the light pollution as well as the power bill of cities. As mentioned before, the IoT is growing fast in almost every technological area. Thus, it will also apply to the tank terminal sector sooner rather than later. In fact, it could be called the ‘Internet of Tanks’ and not reduce it to gauges but also cover all other aspects of a tank like calculations, dimensions or locations. Many terminals or depots in the world still rely on old, outdated systems. Consequently, in order to remain competitive, most of those sites are being revamped. But is it still stateof-the-art to put in an ordinary automation system? The main reason to modernise plants is to enhance efficiency and reduce costs. Therefore, a state-of-the-art, IoT-based solution allows for the consolidation and interlink of information easily in order to make these kinds of decisions. But how can an Internet of Tanks concept work?
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The IoT concept will be one of the key success factors for tank and terminal applications in the near future
STEPS TO IOT REALITY It starts with the setup of the system including the sensors, gateways and calculation software, which are required to initialise the information flow. The application defines the requirements regarding measurement accuracy and updates times and, thus, selects the appropriate type of measuring technology. In order to ensure compliance between all different sensors to monitor and run your plant, it is important to choose between the entire product range and with that a broad range of technical opportunities. For example, the latest 80GHz free space radar technology with a narrow beam angle as well as a small antenna makes it possible to place the radar almost anywhere on the tank, even in locations where up to now only technologies touching or emerging into the stored product could be used. With the selection of the measurement equipment, the data source is defined. As a next step, plant operators have to be informed
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about what is happening on site. What is required to enable them to run the plant in a smooth and safe way? The measurement instruments need to be integrated seamlessly into a highly available system to ensure that they have their required information available at any time from any place. This does not necessarily mean that the system needs to be redundant. It is also possible to reduce the risks of losing the complete operational capabilities by working with a decentralised system, which builds on a set of small but powerful gateways, providing monitoring interfaces via web server and performing all required calculations for a loop. Nevertheless, those gateways must be capable of working together in order to offer a single point of entry to the entire system. This means that each loop is autarkic and can continue to run without any interference even if another one is currently in maintenance but the data of each loop can still be consolidated to one overview. In addition to the decentralised philosophy, the software should run within the gateway and provide the data via a web server. This offers two main advantages: the first one would be that no software needs to be installed on a separate PC or server reducing installation as well as maintenance costs. The second advantage is that the infor-
mation is not only available on one PC in the control room, but it can also run throughout the entire company network on standard laptops, tablets or smartphones. LEAN AND TRANSPARENT MANUFACTURING With the IoT system in place, it is now possible to provide information easily to various people based on the same data. Via different information channels, people in charge of the material flow along the supply chain as well as the local tank operators will have access to the same data source. However, the information will be enriched or consolidated depending on the use of the information. For example, a reduced but defined set of information is required to be exchanged with the ERP system. Lean manufacturing is maybe the best example to illustrate this: with lean manufacturing, companies reduced the unnecessary production steps and procedures in order to raise efficiency and in the end reduce costs. The less data is exchanged the more efficient a system will be. This can be achieved with the new generation of gateways, so-called ‘edge gateways’. They can provide the data not only to the plant monitoring software but also to ERP systems. Furthermore, using the advantages of a cloud-based system will enhance collaboration
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possibilities and help to share information along the value chain. CONCLUSION The Internet of Things (or Tanks) has already entered our business. Based on reliable instrumentation and edge gateways, the required set of data may be provided to IoT-cloud-based systems. Hence, the right information can be channeled to the right people depending on their roles in the company. This unprecedented transparency and up-to-date information is now ready to be exploited, can improve processes and increase efficiency. Step by step, the IoT concept is making its way into inventory management systems, and will be one of the key success factors for tank and terminal applications in the near future.
FOR MORE INFORMATION This article was written by Daniel Hoy, product manager, Endress+Hauser, daniel.hoy@pcm.endress.com, www.endress.com
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TECHNICAL FEATURE l COATINGS
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TECHNICAL FEATURE l COATINGS
THE FOUR P’S TO SUCCESSFUL COATINGS PROJECTS
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ften, the mindset of clients and engineers is one of ‘it’s just paint, how hard can it be?’ Everyone thinks it is a slam dunk afterthought, until the system fails pre-maturely. Many engineers and architects are put in charge of managing, specifying and ensuring the quality assurance of coatings on their projects because they are in charge of the project. That is, if the engineer is responsible for designing the tank, that individual is often also specifying the coatings that protect it. However, coating materials are NOT part of the curriculum of many engineering and architecture programmes, yet these same degreed professionals are asked to perform these tasks as consultants. The only way to obtain this specialised knowledge is through coatings industry organisations such as NACE or SSPC, or through on the job training, typically under a mentor. The number one way atmospheric structures are maintained from erection to retirement is protective coatings. Given the typical service life to first maintenance of a coatings system is 10-20 years, (depending on several factors), coatings maintenance may happen many multiples of times during the lifecycle of the structure. When looking at bridge structures that might have 100-year service lives, there may be 5-10 times that the coatings will be repaired or replaced.
JUST SCRAPING BY There was a presentation recently on the factors that affect coatings materials performance and their importance to the ongoing integrity and longevity of all steel structures, but specifically aviation fuel tanks. After the presentation by Pond’s David Hunter, one of the company’s fuel tank clients contacted Pond about six deteriorating aviation fuel tanks at their site. The tanks were recoated only three years ago, and, unfortunately, the coating system is deteriorating to the point that the steel is exposed. The proposal from the contractor three years ago called out to ‘scrape and sand all loose rust areas on the six tanks where needed. Power wash tanks prior to painting. Apply two full coats of rust-inhibitive alkyd paint.’ That was the entire specification. The tanks of this size normally come coated from the original equipment manufacturer (OEM). No information was available about what the tanks were coated with originally.
Importantly, as with any project, choices upfront tend to predict the outcomes. The balancing act between cost and performance should always be discussed considering what the expectations (or expected outcomes) of a project are desired. For this case, if the owner was only looking for three years of performance, then no disappointment should be expected. However, in this case, the service life of the structures is well beyond three years. Coating performance is most effected by the four P’s: performance, prep, procedure and product. PERFORMANCE Corrosion engineers can design structures by selecting materials designed to last a very long time. The key to this is does the design work fit within the constraints of the project. A series of questions that must be answered, just to name a few are: • What is the design life of the structure? • What is the environment the structure will be placed? • How accessible will the structure be for maintenance? • Is there a desired maintenance interval, such as 5, 10 or 20 years based upon operations or other factors? • Does the structure operate at elevated or low temperatures? Is it insulated? What temperatures does the structure see during transients? • Can the structure be taken out of service? If so, for how long? • What is the existing coating system? Does it contain hazardous constituents? • Are there limitations on the type of surface preparation due to other items being around the structure? The above list is not in any way exhaustive, but for this tank project, the answers are below: • What is the design life of the structure? 30 years • What is the environment the structure will be placed? Coastal atmospheric, subject to hydrocarbon exhaust, winter snow. No insulation • How accessible will the structure be for maintenance? Fairly accessible with room to scaffold/rig, but controlled security access • Is there a desired maintenance interval, such as 5, 10 or 20 years based upon operations or other factors? As long as possible within a reasonable budget, to minimise operational disruptions • Does the structure operate at elevated or low temperatures? Is it insulated? What temperatures does the structure see during transients? Ambient conditions, no insulation • Can the structure be taken out of service? If so, for how long? Yes, each tank can be taken out of service individually, for extended time periods (1 month) • What is the existing coating system? Does it contain hazardous constituents? The overcoat was 2 coats of alkyd; the OEM coatings is unknown. Hazardous materials test results pending. • Are there limitations on the type of surface preparation due to other items being around the structure? A fuelling transfer area is adjacent to the tanks (15 feet), as well as an operating airport taxiway within 100 yards PREP (SURFACE PREPARATION) Surface preparation is one of the most critical keys to a long-lasting coating. Although there are many claims on performance over marginal surface
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preparation, one would be hard pressed to find any coating manufacturer that would put in writing that their product will last longer on less surface cleanliness. Much research has been done in this area, and one item holds true: The cleaner the surface prior to applying the coatings, the longer the coating will last. If you look at the dollars spent for a typical coatings project, painters would not be called painters, they would be called ‘surface preparers’. Luckily there are standards for surface cleanliness that have been established by the coatings industry. With minor simplifications to remain germane to the subject, surface preparations methods/standards, ranging from the least to most clean are as follows:
METHOD/STANDARD SSPC SP-1 solvent cleaning SSPC SP-2, hand tool cleaning SSPC-SP3, power tool cleaning SSPC-SP11 power tool cleaning to bare metal SSPC-SP7/NACE 4 brush-off blast cleaning SSPC-SP6/NACE 3 commercial blast cleaning SSPC-SP10/NACE 2 near-white metal blast cleaning SSPC-SP5/NACE 1 white metal blast cleaning
LEVEL OF CLEANLINESS Low
High
Note that all surfaces do not get the best level of surface preparation due many factors such as cost, ability to perform in a given area, access, service life requirements and practicality. Unlike other construction disciplines, the quality steps that go into a good coating application are very difficult to verify after completion. The level of surface preparation is nearly impossible to verify after the coating has been applied, which is the most expensive part of the project, and a key to coating PROCEDURE (SPECIFICATIONS) The owner’s original specifications from the coatings contractor three years ago consisted of two lines on a quote sheet. Qualified and conscientious people can do anything, with less direction, but it takes an indeterminate amount of one thing on the purchaser’s part: trust. A well-written specification has, at its heart, the goal of setting the level of expectation of the outcome. The reason that a specification is so critical in coatings application is that all the quality assurance goes in while the coating is being installed, and cannot be easily verified after the fact. A format that the industry has partially embraced is from the Construction Specification Institute (CSI), which breaks the specification into three general sections which are ‘general, products & execution’. An abbreviated list might include the following: GENERAL • Scope of project • Areas to be coated and not to be coated • Site access and storage area • Site investigation clause • References (sometimes called ‘applicable documents’) • Definitions • Submittals • Contract errors, omissions, and other discrepancies, including conflicting requirements, ambiguous requirements • Qualifications of the coating contractor • Pre-construction conference, coordination and progress meetings PRODUCTS • Coating materials and thinners (other than as specified by mfg.) • Proof of compatibility if mixing systems • Finger printing of materials • Contrasting colours for multi-coat systems • Abrasives • Test kits • Amine blush testing • Salt testing
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EXECUTION • Deliver, store, mix, apply, and cure coatings • Equipment for surface preparation and coating application • Kits and equipment for testing for surface cleanliness and profile and film • Thickness • Specified types of coating materials delivered and their verification • Field mock-up (as part of verifying procedures during start-up • Acceptable ambient conditions • Periods of control • During surface preparation • During coating application and initial curing (specify initial cure time) • During other operation • Parameters of control • Air temperature/Surface temperature • Dew point/relative humidity/wind speed • Surface contaminants • Lighting for all work areas (as prescribed in SSPC-Guide 12) • Blast cleaning of surfaces for coating application • Pre-cleaning of surfaces for painting prior to surface preparation • Required level of results • Allowable methods • Ambient conditions for surface preparation • Pre-cleaning of surfaces for painting prior to surface preparation • Coating application • Instruction for mixing components • Amounts of thinner, if any, permitted • Ambient conditions for application and curing (length of cure) • Pot life at different temperatures • Allowable application methods • Stripe coating • Initial cure period • Recoat window • Acceptable wet/dry film thickness range • Repairs (how much allowable and special requirements) • QC Inspection and documentation Requirements • Final inspection • Punch List • Warranty & correction period requirements/criteria • Clean-up and proper disposal of wastes All the steps above affect quality and longevity of the coating system. PRODUCT Selecting the right product for the environment and the allowable surface preparation is critical. In this case, the coating system was a rust inhibited alkyd. Its coating system has worked over abrasive blasting, but with simple scraping and lack of feathering of the existing coating. Feathering is the process of decreasing the edge thickness of a coat film that has been applied to prevent the corrosion of a material. It is done in order to create an even, smooth application area to a surface that has been partially corroded before applying a fresh coat. ASSIGN A COATING INSPECTOR For this client, a coating inspector was not hired. Had the client initially utilised a coating inspector, they would have been onsite and shadowing the contractor in every phase of the process – ensuring the coating was correct, surface preparation and application were done to published standards, the whole mess might have been avoided. The Pond team is proposing a timeline to upgrade and maintain the client’s coating systems, based on the client’s budget. Because of the need by operations, remediation of one tank at a time will be required. Realistically, if a client has the budget, recoating three tanks within a month is possible. FOR MORE INFORMATION This article was written by David Hunter, protective coatings specialist, NACE & SSPC instructor senior project manager for Pond’s integrity and corrosion management group (ICM). www.pondco.com
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL FEATURE l COATINGS
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TECHNICAL FEATURE l TERMINAL AUTOMATION
THE PLANNER’S DILEMMA
E
very operator faces the ‘planner’s dilemma’ with regards to vessel turnaround times as they work to ensure their customers are satisfied. The dilemma – to give an estimation that seems desirable for the customer or an under-promise estimation that allows for over-delivery. However, there are ways to mitigate the effects of such a dilemma by avoiding unnecessary waiting times, inefficient use of assets and to improve customer satisfaction.
UNDERSTANDING TURNAROUND TIME The turnaround time is determined by many factors including; the surveyor, pump capacity, tolerance levels, product temperature, the amount of product (or ullage) in the tank, are parallel operations possible or not and gooseneck capacity. However, the main process determining turnaround time is the pump time. Because of this, turnaround times are often estimated using a basic equation: divide the cargo size by the average flow rate and add a couple of hours for pre and post pumping operations. Experienced planners are able to adjust the results of this equation based on earlier arrivals. In an increasingly complex and competitive world, a basic equation is not sufficient anymore. In order to reduce waiting times advanced technology is required. Because there are so many factors influencing the turnaround time of a ship, there is a lot of uncertainty on the actual time the ship is going to be at berth, see Figure 1. The uncertainty therefore defines the next arrival window ‘arrival 2’, which will be scheduled some time after the expected departure of ‘arrival 1’. THE PLANNER’S DILEMMA: SHORT VS. LONG PLANNING The planning is ‘short’ if the turnaround time of a ship turns out to be longer than expected by the planner. In other words: the planned operations slot for the ship is not sufficient to finalise all operations at the terminal. Vice versa: the planning is ‘long’ in case the ship can depart earlier than estimated, i.e. the planned operations slot is more than sufficient to finalise all operations at the terminal. The difference in short and long planning and the effects of this are shown in Figure 2. SHORT PLANNING Short planning directly leads to waiting times for ships. When an operations slot is planned ‘short’, the ship arriving after that slot will need to wait as the berth is still occupied. These waiting times can be avoided if the planner can make a better estimation of the required operations slot. Alternatively, the planner can add time to the estimated operations slot to make sure the berth is free. If this happens it is called ‘long’ planning.
MONDAY, MAY 23 2017
BERTH 1
LONG PLANNING Terminal assets are used inefficiently in cases of long planning. Planners that allocate a larger operations slot than required for a ship to turnaround are reducing the time the berth can be used for other operations. Again, if the planner is able to better estimate the time required for future operations, terminal assets can be better utilised. Furthermore, the need for investing in new assets can be delayed, since there are more slots available for ships during the year.
ESTIMATING DIFFICULTY A case study analysing multiple years of data at a petrochemical terminal shows how difficult it is for planners to estimate the required turnaround time for a ship. Firstly, the maximum ‘estimation error’ needs to be determined that impacts the waiting time (short planning) and asset utilisation (long planning). Secondly, the chance of making estimation errors is then analysed. Planners were able to estimate the turnaround time of a ship (barges and vessels) correct in 7% of the time, meaning that the expected time at berth was exactly the actual time at berth. Short planning occurred in 54% of the time and 39% of slots were long planned. This does not necessarily mean that most of the time the planning is causing waiting times or inefficient use of assets, since estimations can also be just a little bit off. That’s why the boundaries of estimations need to be defined. The turnaround times for ships can’t always be compared due to the large difference in cargo size. For this reason the analysis is split into two parts: barges and vessels. The boundaries for estimations that can cause waiting times or inefficient use of assets depend on the berth occupancy of a terminal. In case berths are congested, the margin for estimations is smaller than uncongested berths. The main reason for this is the potential snowball effect of estimation errors when short planning is occurring, which is shown in Figure 3. Congested berths cannot recover from the effects of short planning and waiting time for ships will increase over time. This effect is illustrated by the red shaded areas in Figure 3. Short planning is often solved by planners by adding ‘buffer times’ between slots. Unfortunately, the use of buffer times will reduce the utilisation of assets and can be quite costly in case investments in new infrastructure are required. DEFINING PLANNING ALLOWANCES The boundary for estimation errors for the planning of barges is defined at an average of one hour, meaning that the average of all estimation errors in a year should not be more than one hour. Data analysis showed that plan-
TUESDAY, MAY 24 2017 Estimated time arrival 1
WEDNESDAY, MAY 25 2017 Uncertaintainty
Estimated time arrival 2
Figure 1: Uncertainty on estimated turnaround time
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TECHNICAL FEATURE l TERMINAL AUTOMATION MONDAY, MAY 23 2017
WEDNESDAY, MAY 25 2017
TUESDAY, MAY 24 2017
BERTH 1
Planned time at berth
MONDAY, MAY 23 2017
Planned next operations slot
WEDNESDAY, MAY 25 2017
TUESDAY, MAY 24 2017
SHORT PLANNING
Results in waiting time Actual time at berth
MONDAY, MAY 23 2017
WEDNESDAY, MAY 25 2017
TUESDAY, MAY 24 2017
Results in efficient use of assets
LONG PLANNING
Actual time at berth
Figure 2: Effects of Short and Long Planning
ners are allowed a boundary of 30% in case of short planning and 50% in case of long planning. Since planners do not plan short or long on purpose, a boundary of 30% is defined. Vessel estimation errors are defined at an average of three hours, equaling a planning allowance of 25%. RESULTS CASE STUDY Even when planners are permitted an allowance of 30% for barge operations and 25% for vessel operations it is very difficult to predict the actual time at a berth. Results show: • Only 71% of all planned barge load operations are within boundaries; • Only 76% of all planned barge discharge operations are within boundaries; • Only 64% of all planned vessel load operations are within boundaries; and • Only 72% of all planned vessel discharge operations are within boundaries. Out of boundary errors: • Barge load estimation errors vary from one hour to 24 hours; • Barge discharge estimation errors vary from one hour to 25 hours; • Vessel load estimation errors vary from two hours to 49 hours; and • Vessel discharge estimation errors vary from three hours to 49 hours. The case study illustrates that there is a very high risk of creating waiting times for all ships. In 24-36% of the time there is a chance of an estimation error between one and 25 hours for barges and three to 49 hours for vessels. This leads to an inefficient use of assets, snowball effects and potential long waiting times for terminal customers. These waiting times can be avoided if planners have the right tool to better estimate actual ship times at berth. SOLUTION TO THE PLANNER’S DILEMMA Systems Navigator has developed a planning engine for its DROPBOARD
CONCLUSION The case study suggests that planners are a bit too positive in estimating turnaround times. Analysis shows that in 54% of the time vessels are ‘short planned’ meaning that in 54% of cases, a turnaround time is predicted that is shorter than the actual turnaround time. Short planning leads directly to ship waiting times if a berth is congested. Better estimations will reduce waiting times and improve customer satisfaction. A total of 39% of all vessel calls are ‘long planned’. Long planned slots claim time of assets that can’t be used for other ships and are a direct waste. Analysis shows that this can run into the hundreds or even thousands of hours in a year, making it a major opportunity for improvement. Solving long planning issues can even lead to less investments in assets. It is extremely difficult for people to correctly estimate turnaround times of ships, even when a 30% planning allowance is taken into account. Planners are successful in 64-76% of time, showing substantial room for improvement. An advanced and smart planning and scheduling platform such as DROPBOARD supports the planner in making the right decision every time. By doing so the planner is able to reduce ship waiting times and improve the use of assets, such as berths, at the same time.
FOR MORE INFORMATION This article was written by Joost Smits, commercial manager, Systems Navigator. www.systemsnavigator.com WEDNESDAY, MAY 25 2017
TUESDAY, MAY 24 2017
MONDAY, MAY 23 2017
SHORT PLANNING
platform that supports planners in estimating ship turnaround times. DROPBOARD’s planning engine is able to remain well within every planning allowance encountered until today. Based on nomination information, a sophisticated algorithm calculates the expected ship turnaround time and suggest this to the planner. It is up to the planner to follow or to overrule the suggested turnaround time.
Planned time at berth Actual time at berth
Planned time at berth Actual time at berth
Planned time at berth Actual time at berth
Figure 3: Snowball effect of short planning
Figure 4: DROPBOARD showing time estimation of vessel call
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TECHNICAL FEATURE l TERMINAL AUTOMATION
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TECHNICAL FEATURE l TERMINAL AUTOMATION
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TECHNICAL FEATURE l FIRE PROTECTION
THE FARe APPROACH IN RIM SEAL FIRES
T
he most common threats that terminal operators wish to avoid are storage tank fires, which have the potential to be catastrophic. As a result, it is natural to have an interest in the causes of such fires and how to mitigate against their escalation to minimise the chances of full surface fires. HSE professionals and terminal managers alike need to be aware of the different methods for tackling such challenges. One such approach for effective rim seal fire protection uses the FARe design method. In a similar way to how the Buncefield explosion made headlines across major hazard industries, rim seal fires can also lead to notable disasters as they are often categorised as one of the more significant risks terminal operators have to face. Over the last 20 years there have been numerous examples where a rim seal fire has been insufficiently contained leading to large-scale disasters. The least common causes of fire outbreaks on floating roof tanks include sparks developing from electrostatic charge as well as uncontrolled exothermic chemical reactions when
storing crude oil with a high concentration of hydrogen sulphide. In the latter case, the combination of the movement of the floating roof with the degradation over time of the seal allows ingress of traces of crude oil into the internal wall of the rusty tank shell. When the hydrogen sulphide comes into contact with air and metal rust, the perfect conditions are created for the development of powdered iron sulphide, which is pyrophoric and therefore ignites spontaneously in the air. This reaction is highly exothermic and can create hot spots capable of igniting the flammable vapours. On the other hand, some of the more prominent causes of this type of fire are lightning strikes, resulting from either a thunder or sand storm. During such phenomena the ignition of the rim seal zone occurs either through a direct strike or through a secondary effect related to a nearby lightning strike, such as electric charge build-up. Or similarly, they can be caused by simple human errors while carrying out maintenance or other operational tasks such as hot works on the tanks or overfilling.
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As with all fires, it is important to supress the fire/gas cloud before it has chance to escalate and/or move to another location. When there is ignition in the rim seal zone it becomes imperative to extinguish the fire immediately to avoid full surface fire. It is worth noting that as long as the floating roof remains stable and buoyant the fire will be limited to the rim seal zone at a scale that can be extinguished by an automatic fire extinguishing system. With the above examples, it is recommended to apply the ‘FARe; principles (Fast, Available, Reliable) coupled with an automatic fire extinguishing system in order to achieve quick and successful rim seal fire suppression. In doing so, the fire is detected instantaneously and the fire extinguishing agent released on the fire from the very earliest of stages. In addition, no foam system unavailability is allowed at any time during regular storage tank operations. FAST DETECTION AND ATTACK Rim seal fire extinguishing systems have been proven to grant rapid fire detection as well as
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TECHNICAL FEATURE l FIRE PROTECTION
immediate suppression of fires on floating roof tanks as they are situated on the floating roof itself and are set to constantly monitor a portion of the rim seal zone. Such independent units come equipped with predetermined amounts of fire extinguishing agent (gas – HFC 227 ea or CF3I: foam – FFFP or AFFF) that is normally propelled by nitrogen. Nitrogen is also part of the pneumatic fire detection and activation system, which not only detects the fire but also triggers the alarm and activates the discharge of the fire extinguishing agent. By installing a rim seal system, the terminal is able to: • Instantaneously detect fire outbreaks by way of a pneumatic detection system; • Provide an alarm to the main control system; • Simultaneously, activate the discharge of the extinguishing agent • Support fire suppression efforts by sending a signal to the main control system, activating the NFPA 11 traditional foam system The rim seal units perform as a quick response system because they react at the earliest stage possible and extinguish fires before they have a chance to develop or spread ahead of traditional foam systems becoming effective. Depending on the foam systems design, extinguishing the fire usually takes 20-60 seconds to be initiated. Thus, the rim seal unit covers
Rim seal fire extinguishing systems have been proven to grant rapid fire detection as well as immediate surpression of fires on floating roof tanks
this delay with its own discharge, which lasts approximately 40 seconds. When confirmation to activate the NFPA 11 foam system is provided, the main control system usually operates deluge valves for releasing the water to the water/foam systems. The role played by the deluge valve is critical to the protection of the storage tank. A failure or even just a temporary unavailability
of the deluge system will jeopardise the fire protection of the whole storage farm. As deluge valves with a high level of reliability and availability are so important, they are often specified with an increased functional safety performance level that is commonly measured using Safety Integrity Level (SIL2 or SIL 3). The higher the SIL level of the deluge system, the lower the probability of failure on demand (PFD), and therefore the higher the probability that the storage tank will be constantly protected against fires. CONCLUSION If a fire does break out on a floating roof, it is important to minimise the damage it can cause. The best way to reduce the risk of fire damage is to ensure the fire can be extinguished quickly. SA Fire Protection’s rim seal systems grant added protection and reduce the response times by releasing the extinguishing agent in the rim seal zone before the fire has an opportunity to escalate.
FOR MORE INFORMATION This article was written by Valeriano Barrilà, technical director, and Sharé Mason, business development manager at SA Fire Protection, export@sasrl.it , www.sasrl.it
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TECHNICAL FEATURE l FIRE PROTECTION
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TECHNICAL FEATURE l LIGHTNING PROTECTION
LIGHTNING PROTECTION FOR FIBERGLASS REINFORCED PLASTIC STORAGE
T
here has been a rapidly growing trend for petroleum, water/wastewater and chemical industries to utilise fiberglass reinforced plastic (FRP) storage tanks. FRP storage tanks are common for these industries due to their non-corrosive properties compared to standard metal storage tanks. However, these FRP storage tanks are still exposed to lightning and are a potential fire hazard. The non-conductive property of FRP materials creates additional resistance to the fast lightning current impulses, creating intense heat at the point of impact. Fires starting at a single FRP tank can engulf an entire facility. Even in the case of an indirect lightning strike, it may also be considered that an unequal ion discharge rate between an insulated FRP tank and a nearby grounded/bonded metallic structure can cause the development of a difference of electrical potential, creating a spark which could lead to a tank explosion and fire. Downtime and recovery costs from lightning strikes can be very expensive and have safety consequences for personnel, strategic infrastructure and critical storage tanks. Tank replacement costs, losses due to operational shutdowns, and safety liability issues can be minimised with the appropriate use of modern lightning protection methods. LIGHTNING RISK ANALYSIS Historical lightning data can be compiled to create an Isokeraunic map showing the statistical average number of thunderstorm days per year, for any area of the world. A three dimensional model can then be developed for a typical FRP storage tank facility. Using electro-geometric modelling applied to the 3-dimensional representation of the facility, all of the lightning attachment points are calculated and displayed visually. The probability of a direct lightning strike to the storage tank facility is determined with consideration of its relative location. The chart below shows the total number
Modeled three-dimensional views
Lightning strike analysis for 15 kA return stroke current
of expected strikes per year for the modeled facility located at two different Isokeraunic values. The standalone direct lightning strike probability should not be the only consideration for effective lightning protection design and implementation, as indirect lightning strikes may also cause sparking or flashover to vapor and/or contents that are stored within the facility. Of course, the modelled facility may have a greater or fewer number of tanks than any existing or proposed FRP storage tank facility under consideration. The relationship between lightning strike probability and
State
Isokeraunic Value
Total number of expected strikes per year
Direct Lightning Strike probability to the Facility
Florida
100
0.124
Once every 8.0 years
Texas/Kansas/Oklahoma
60
0.0743
Once every 13.5 years
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TECHNICAL FEATURE l LIGHTNING PROTECTION
the number of tanks is very linear, the change in risk doubles each time the number of tanks doubles. For example, if an owner/operator maintains 14 times the number of tanks shown, in Texas, then they can expect one tank to suffer a direct strike every year. Since it cannot be known beforehand which tank will be struck, it’s highly suggested that all tanks be protected. LIGHTNING PROTECTION AND GROUNDING SYSTEM SOLUTIONS Alltec has observed that most fiberglass storage tank facilities implement bonding and grounding sufficient for electrostatic charge dissipation. It is very important to prevent a discharge of an accumulation of static electricity from a storage tank to the ground or to another charged object of different voltage, which can be the cause of a fire or an explosion if it takes place in the presence of readily flammable materials or combustible vapour and air mixtures. Alltec recommends that existing bonding and grounding at FRP battery/tank farms should be inspected and any incompliances to NFPA 77 ‘Recommended practice on static electricity’ should be identified and corrected. Proper bonding guidelines should be followed as per recommended practice. It is important to note that bonding and grounding implementations sufficient for electrostatic charge dissipation are not adequate for lightning protection grounding systems. Existing bonding and grounding systems at FRP storage facilities should be further enhanced by the implementation of code compliant lightning protection bonding and grounding. All metal ladders, overhead piping, and vents should be properly bonded and grounded. Properly designed and installed lightning protection is essential, as closed top metallic tanks may have flammable atmospheres at their vents, and fiberglass tanks receiving a direct lightning strike may rupture violently. The high level of lightning protection required by a fiberglass tank facility is best provided by a mix of technologies and a selection of methods drawn from a range of globally accepted standards. For instance, API-2003, ‘Protection against ignitions arising out of static, lightning, and stray current: Appendix C’, describes charge dissipation terminals (CDT) as one of the lightning protection technologies used to mitigate the path of an incoming lightning stroke. In addition, NFPA 780, IEC 62305 and other standards for lightning protection actually describe minimum requirements for lightning protection system design and installation. Designs utilising CDTs meet or exceed those standards, while offering the enhanced performance provided by CDT technology. Alltec can model any existing or new/proposed external ground system by creating a soil model using tested soil resistivity values to meet any low impedance ground reference solution requirement. The resulting data is entered into specialised integrated grounding software that accurately calculates soil resistivity at various depths. Alltec provides an array of grounding products, including TerraDyne electrolytic ground electrodes, TerraFill low resistive backfill material, and the TerraWeld exothermic welding system to supply and install effective grounding systems. SURGE PROTECTION SOLUTIONS In addition to proper grounding and bonding, it is crucial to install SPDs at key points throughout a facility to adequately protect today’s sophisticated microprocessor based electronic equipment. It is strongly recommended that a comprehensive network of quality surge protective devices (SPDs) are installed throughout the tank farm’s power distribution to protect critical equipment loads against hardware damage and from
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surge and electrical noise related operational disruptions, resulting from lightning and non-lightning related surge and noise anomalies. Noise on a power line is generically defined as low amplitude disturbances that are distinguishable by an identifiable frequency pattern. A transient surge is a momentary burst of energy whose duration extends into the millisecond range. While surge anomalies are far more likely to interrupt equipment operation and damage electronic hardware, transient induced noise interference can also disrupt sensitive equipment operations. A cascaded network of SPDs, designed to work in tandem with each other, should be installed on main distribution panels and motor control centers to protect against externally generated surge activity. They should also be installed at branch panels and other sub panels that supply power to critical equipment loads to protect them from surges originating from within the tank farm. It is also advisable to individually protect equipment loads that are electrically located further than 50 feet from a protected point within the electrical distribution. These SPDs should incorporate common mode suppression components to shunt lightning induced surge current to the electrical distribution’s ground circuit. They should also employ normal mode suppression circuits to distribute internally generated surge current between power phases; and between the phase and neutral conductors on the AC power service. At the very least, any and all control and data lines entering and exiting a structure should incorporate proper SPD protection. Implementing these recommendations will bolster tank farm equipment surge and noise immunity levels to the highest possible thresholds to extend their operational life expectancies, increase efficiency levels, and reduce maintenance, repair, and replacement costs. THE ‘PROTECTION PYRAMID’ Alltec specialises in engineered solutions that reduce the risks associated with direct and indirect lightning strikes, as well as diminishing the hidden effects of surge events. Offering decades of knowledge and experience, Alltec’s recommendations advise the best methods for risk mitigation, and ultimately apply these evaluations as comprehensively engineered solutions. Alltec calls the methodology used for visualising, designing, and implementing its unique and industry leading three-tier comprehensive facility protection approach for grounding, surge suppression and lightning protection, the Alltec protection pyramid. It is important to realise the interrelationship and interdependence of the three tiers in protecting any facility. Without proper grounding, neither the surge suppression nor lightning protection will function correctly. Without surge suppression, equipment is exposed to the secondary effects of lightning as well as internally generated transient voltages. Direct strike lightning protection protects the physical structure and its contents. These three subsystems interlock into a very robust and stable whole. This approach looks at all aspects of a facility and works in a holistic fashion to make sure all areas are protected with an effectively interlocking defense.
FOR MORE INFORMATION online-info@alltecglobal.com, www.alltecglobal.com.
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INFRASTRUCTURE MINING & METALS NUCLEAR, SECURITY & ENVIRONMENTAL OIL, GAS & CHEMICALS
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F201704008
TECHNICAL FEATURE l FLOATING ROOFS
TECHNICAL INNOVATIONS IN EMISSION CONTROL The growing importance of environmental protection and the control of vapour emissions from tanks has resulted in the need for more innovative technologies
S
tricter environmental regulations are spurring better methods of emission control and as a result the popularity of full contact internal floating roofs is growing as operators adhere to stricter regulations. When it comes to oil storage tanks, the control of emissions is crucial as operators become even more responsible over safety aspects of tank storage. Additionally, VOC reduction also equates to greater financial savings due to differing evaporation rates between some stored products. Therefore, a full contact internal floating roof (IFR) system is becoming a more popular system of choice compared to non-full contact IFR as they ensure a greater percentage of emissions reduction. Full Most, a Taiwan-based company, offers an innovative brick style honeycomb IFR with full contact liquid surface which utilises the honeycomb structure to provide more robust coverage across the entire tank surface. In an interview with Tank Storage Magazine, Ciprian Aionesei, business development manager, explains that the company has seen a growing demand for their full contact IFR design as operators seek better technologies to mitigate vapour emissions. He says: ‘Full Contact IFR can effectively reduce over 90% of VOC emissions. Installing an IFR covers safety, cost efficiency as well as adherence to emission control and environmental protection which makes it the best and most effective way. ‘It also requires lower capital costs and is easier to install compared with other options
01
01 Full contact internal floating roof systems ensure higher reductions in emissions 02 Environmental regulations are driving improved methods of emission control 03 Figure 1 – An example of an on-site emission report
for vapour recovery or vapour destruction, which are either more expensive, or require complicated maintenance. ‘For example, while a non-full contact system is a cheaper solution, it has a very fragile structure and the lifecycle of the roof is shorter. ‘Environmental regulations are driving better methods of emission control. When it comes to IFR, we already see that the full contact design is a trend and that is a good thing. This trend will lead many companies to design full contact IFR, and those who have excellent
02
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
quality, service and R&D will determine the market share.’ The company’s full contact IFR design features an innovative two-way automatic vent technology, which balances pressure during filling and withdrawal operations as well as preventing the IFR from severely shaking. The brick style honeycomb structure is not affected by stored liquid infiltrations because it is a full enclosure and the aluminium material makes it light-weight and robust. GREATER EMISSION REDUCTION IN CHINA Full Most successfully implemented their full contact IFR system with some of China’s largest oil companies including Sinopec and China National Petroleum Corporation following greater pressure from the government to address various environmental issues. Aionesei says that before the company entered the market in China, operators were using non-full contact IFR systems such as skin and pontoon roofs for light oil storage tanks. ‘The tank storage operators were used to these systems however they were not very effective with emission reductions.
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Client Case Studies: VOC Field Measurement Reports TECHNICAL FEATURE l FLOATING ROOFS
Stored Liquid Test Under No Operations
Environmental conditions
Test result datasheet
●Location: NE China (Panjin)
●Testing under no filling or withdrawal operations
●Diameter: 20 m
Tank #1412 Skin & Pontoon IFR
●Capacity: 5000 m
3
Test
●Stored liquid: naphtha
Test date
1
●Test period: every 8 days ●Temperature difference (est.): avg. high 15 C ; avg. low 3 C ●Avg. daily solar radiation energy: 1135btu/ft2 day
Liquid height (m) Liquid height loss (m)
2013/3/1
4.170
Liquid weight(T)
Liquid weight loss (T)
900.381
2
2013/3/9
4.157
0.013
897.652
2.729
3
2013/3/17
4.143
0.014
894.696
2.956
4
2013/3/25
4.129
0.014
891.683
3.013
5
2013/4/2
4.116
0.013
888.734
2.949
6
2013/10/1
8.360
7
2013/10/9
8.345
0.015
1832.152
3.152
8
2013/1017
8.331
0.014
1829.006
3.146
9
2013/10/25
8.317
0.014
1825.848
3.158
10
2013/11/1
8.302
0.015
1822.681
3.167
1412#
1835.304
March total loss
height (m):
0.054
weight (T):
11.647
November total loss
height (m):
0.058
weight (T):
12.623
Tank #1414 Brick Style Honeycomb Type IFR (Full Most) Test
Test date
1
1414#
Liquid height (m) Liquid height loss (m)
2013/3/1
4.240
Liquid weight(T)
Liquid weight loss (T)
909.899
2
2013/3/9
4.237
0.003
909.441
0.458
3
2013/3/17
4.235
0.002
908.984
0.457
4
2013/3/25
4.233
0.002
908.53
0.454
5
2013/4/2
4.231
0.002
908.08
0.450
6
2013/10/1
7.920
7
2013/10/9
7.917
0.003
1723.031
0.511
8
2013/1017
7.915
0.002
1722.522
0.509
9
2013/10/25
7.913
0.002
1722.004
0.518
10
2013/11/1
7.910
0.003
1721.482
0.522
March total loss
height (m):
0.009
weight (T):
1.819
November total loss
height (m):
0.01
weight (T):
2.06
03
‘As a result of growing environmental issues VOC in theConcentration country theseTest companies needed to do somethingConditions to address this, especially the Environmental state-owned ones. ●Location: Taiwan, Yilan
1723.542
‘We persuaded them to use our full contact brick style honeycomb type IFR to prevent 20ppm VOC emissions.’ Aionesei explains that initially, there was
(Taiwan Petrochemical Plant) ●Date: 2015/03/19 ●Diameter: 17.38 m ●Capacity: 3000 m3 ●Liquid stored: M- xylene
some reluctance to adopt this new system as the companies were not familiar with the system and some had never used it before. ‘We asked them to do on-site emission reports and compare the storage tanks with full contact IFR with non-full contact IFR,’ he says. ‘Initally they monitored the emissions situation for one year and when they got the report back, the results were strongly in favour of full contact and there was solid proof that a full contact IFR system can solve the emissions problem.’ The results (an example is shown in Figure 1) highlight that the loss capacity of the skin and pontoon IFR is around 140 tonnes per year whereas the annual loss capacity of the brick style honeycomb type IFR is 22 tonnes per year. ‘As a result, we started get more interest from local companies because we had these reports and findings to support what we were saying. ‘The high quality, performance and reliability of our IFR led to an overall acceptance within the industry.’
FOR MORE INFORMATION www.fullmost.com.tw
1900ppm 1750ppm 2200ppm
2m 0.5m
●Design stored height: 12.127m Tank height at time of measurement: 9.5m ●The test is conducted after the liquid is stored for 9 days ●Testing instrument: Thermo Environmental Instruments TVA-1000
MIDSTREAM EXPERTISE
●Through the calculation formula and field result, it is proven that using brick style honeycomb IFR, the VOC emissions are reduced dramatically, and it can meet the environmental requirements 100%. ●The safety will be increased due to VOC emissions reduction.
CONCEPT
ENGINEERING
INSPECTION
Houston, TX | B.J. Bridges | bridgesb@pondco.com | 832.42CRUDE Atlanta, GA (HQ) | Todd M Eldridge | eldridget@pondco.com | 404.748.4866
www.pondco.com
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TECHNICAL FEATURE l FLOATING ROOFS
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TECHNICAL FEATURE l PUMPS
THE FLUID-HANDLING ADVANTAGES OF SCREW PUMPS While centrifugal pumps have a sizeable installed base in the liquid terminal industry, many benefits can also be realised if operators consider alternative technologies
T
he universe of liquid storage terminals continues to expand and the proof lies in the exponential growth of global storge capacity over the last eight years. On tankterminals.com database, as of early March 2017, total terminal storage capacity stood at 953,258,444 m3 with 4,604 tankstorage facilities covering a network that includes 2,276 ports or cities and 161 countries. For comparison, those figures more than double the total storage capacity (423,575,602 m3) and terminal facilities (2,150) that existed in 2009 and represent significant increases in the number of ports/cities (1,249) and countries (132) that contained tank storage facilities eight years ago. Growing long-term demand worldwide has driven this rapid and consistent expansion. As a result, pumping technologies that have been proven to help maximise safety, production efficiency, uptime performance, delivery system accuracy and environmental compliance are increasingly important to operators for both new and existing facilities. As the globl storage terminal market continues its upward trend, from the largest port terminal to the smallest regional bulk station, petroleum tank truck or chemical transport,
operators must employ fluid-handling technologies that are ideally suited for numerous characteristics and applications. Traditionally, centrifugal pumps have been a go-to technology for operators, with some estimates indicating that centrifugal pumps are utilised at nearly 75% of these sites. However, positive displacement twin and triple-screw pumps can often be a more versaitile and reliable option than centrifugal pumps in fluid-handling operations. THE CHALLENGE The most obvious challenge – and perhaps the toughest – in making screw pumps more prevalent in liquid-terminal applications is convincing the industry’s operators to move away from a technology that has become defined as the best one for a variety of unique fluid-handling tasks. Generally speaking, the bulk of the fluids that are handled at liquid terminals must be transferred at very high flow rates and volumes, which hits the operational sweet spot of centrifugal pumps. Because of the success of centrifugal pumps in these types of operations, the fluid transfer systems at liquid terminals have been designed around the pumping technology, rather than the 01 Blackmer’s twin screw with timing gear and triple screw models is a way for terminal operators to maximise their ability to handle a wider array of fluids at higher viscosities, flow rates and pressures. 02 Blackmer offers a complete family of highly efficient and versatile twin and triple screw pumps. 03 Blackmer S series twin screw pumps with timing gear have been designed with external bearings and a timing-gear transmission, which helps the pump achieve the highest flow rates of any rotary PD pump.
01
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other way around. This means that engineers are familiar with centrifugal pumps and then attempt to work within their operational limits. They know how centrifugal pumps operate, know their benefits and are confident that they are still the best technology for all of their many fluid-transfer needs. In some cases a design engineer, instead of considering an alternative pumping technology, will blend or heat the liquid that needs to be transferred as a way to manipulate the process and get the viscosity of the fluid down to less than 300 cSt, which makes it easier for the centrifugal pump to transfer the fluid. What they are doing in this instance is reconditioning the fluid to fit the pumping technology – irrespective of the cost impact. When measures like this are taken to satisfy the needs of the pump, the popularity of centrifugal pumps in fluid-transfer applications becomes something of a self-fulfilling prophecy. Despite the ability to recondition the fluid to meet the operational needs of the centrifugal pump, operators must still take care to ensure that the centrifugal pump is operating on what is known as its ‘best efficiency point’, or BEP. The BEP is the point where the centrifugal pump is working at its highest level of efficiency. Centrifugal pumps rarely operate at their exact BEP because pristine pumping conditions are rarely realised, but a centrifugal pump that is able to function in a window between 80% and 110% of its BEP is said to be functioning adequately. However, when the operation of the pump moves too far off its BEP uneven pressure will be applied to the impeller, which can result in increased radial thrust that will cause the pump’s shaft to ‘deflect’. When this deflection occurs, higher loads will be placed on the bearings and mechanical seal, which can lead to damage to the pump’s casing, back plate and impeller. Ensuring operation at the BEP can be a time-intensive task as the pump must be monitored constantly and adjusted, which costs time and money.
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TECHNICAL FEATURE l PUMPS
Regardless of the flow rates and volumes that must be achieved, there are other considerations that the operator must consider before deciding on the best pump technology, including: • Varying loading requirements and different flow rates that need to be delivered to varied locations throughout the day • Intermittent service that requires quick, multiple starts with minimal line priming • Varied shipping media with differing fluid-handling characteristics • Effective stripping of transport and storage vessels to maximise deliverable working volume while managing gas entrainment without the threat of pump shutdown due to vapour locking • Meeting strict cycle times regarding incoming and outgoing shipments, with any delays or shutdowns resulting in the incurrence of prohibitive charges or financial penalties that can reduce the terminal’s profitability • Level of risk for an explosion due to static charge buildup during filling cycles. THE SOLUTION As mentioned, the solution to the operational disadvantages of centrifugal pumps can be positive displacement (PD) screw pumps. The difficulty in expanding the penetration of screw pumps in liquid-terminal settings is not only overcoming the strong customer familiarity with centrifugal pumps but in getting design engineers to acknowledge or even become aware that there are alternatives like screw pumps. Many engineers are not taught about screw pumps in their studies, and many who are aware of them have a preconceived notion of their shortcomings, or that they are nothing more than lube pumps capable of handing only low flow rates. In reality, today’s screw pumps have experienced remarkable advancements in terms of the flow rates that they can handle, with flow ranges from 220 gpm (833 L/min) to 11,000 gpm (41,635 L/min) not uncommon. The design of PD screw pumps makes them capable of handling various liquids – even those with higher viscosities that are common commodities in many liquid terminals. The operating principle sees opposed screws engaged to form a sealed cavity with 02
the surrounding pump casing. As the drive screws turn, the fluid is shifted and steadily and constantly conveyed to the discharge port of the pump, which creates a volumetrically consistent flow rate regardless of the pumping pressure. The list of benefits provided by screw-pump technology in oil and gas fluid handling applications is a long and impressive one: • Ability to handle a wide range of flows, pressures, liquid types and viscosities without the need to manipulate a BEP position • Constant flow, even in the presence of varying system backpressures due to viscosity changes • Eliminate the need to pre-heat fluids as the technology can readily handle high-viscosity fluids without sacrificing performance • Can accommodate significant turndown ratios when controlled by an adjustable-speed drive, allowing for a wider flow range without wasteful recycling • Good suction-lift capabilities that can maximise line-stripping operations while being able to tolerate the intake of entrained air and other gases without vapour locking • High volumetric and overall operating efficiencies, resulting in reduced operational costs • Deliver high and constant flow rates even when exposed to upstream and downstream pressure fluctuations, ensuring consistent loading and unloading times • Low internal velocities • Low mechanical vibration lengthens service life • Intrinsically smooth and quiet operation • Extremely low pulsation reduces stress and prolongs life of associated fluid-transfer components (piping, hoses, etc.) Realising the operational advantages that can be achieved when using screw pumps in fluid-transfer applications, Blackmer, a provider of pumps and compressors for industrial use has developed the S Series screw pump product line. Specifically, Blackmer recommends two of its S Series pump models – twin screw with timing gear (WTG) and triple screw – for liquid terminal fluid-transfer activities. The twin screw (WTG) pumps have been designed with external bearings and a timing-gear transmission, which produces double-suction, self-priming operation with no metal-to-metal contact between the pump’s internal components. This design helps the twin screw (WTG) pump achieve the highest flow rates of any rotary PD pump, even at varying backpressures and viscosity levels. In fact, the deliverable flow rate of a PD screw pump, unlike a centrifugal pump, actually increases as the fluid’s viscosity increases. These design characteristics also make screw pumps suitable for all types of transfer applications, including low- or high-viscosity, lubricating or non-lubricating, neutral or aggressive, and clean or contaminated fluids.
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03
The triple screw pumps are made to handle clean lubricating fluids without solid content across a wide range of viscosities, temperatures and pressures. They are designed with a male drive spindle, two female secondary spindles and a case that contains the screws, which allows the fluid to move smoothly and continuously in an axial direction from suction to discharge. This method of operation delivers smooth, constant product flow with low noise and high levels of energy efficiency. Both models feature no metal-to-metal internal contact, with optional double mechanical seals available as a way to eliminate an ignition source and to safeguard against process fluid discharges. The result is a safer pump for site personnel, the terminal, surrounding communities and the environment. CONCLUSION As the tank storage universe continues to grow, a pumping technology that offers numerous and significant advantages in terms of reliability, consistency, versatility and safety stands poised to grow along with it. While screw pumps may have a higher purchase price than centrifugal pumps, it’s best to remember the old saying that ‘buying cheap just means you’ll have to buy it again’, and that the total cost of ownership will be lower since time and money won’t be spent on BEP monitoring and adjustments. The main operational advantages that screw pumps have – the ability to handle a wider range of fluid viscosities at higher rates and pressures, lower energy consumption and no BEP to contend with – leave them poised to become a more efficient, reliable and versatile alternative to centrifugal pumps in critical liquid terminal fluid-handling applications.
FOR MORE INFORMATION This article was written by Josh Pepper, global product manager, screw pumps for Blackmer josh.pepper@psgdover.com +1 616 248 9235 and Michael Moore, senior director, business development, screw pumps Michael.moore@psgdover.com +1 616 241 1611
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TECHNICAL FEATURE l TANK CLEANING
CHANGING THE FUTURE OF TANK CLEANING
A
safe tank cleaning solution that removes the need for man entry during cleaning operations has been brought to the market. DERC Salotech has launched the Gerotto Tank Cleaner System Lombrico ATEX Zone 0, a mini robot that removes sludge and cleans storage tanks. Arco den Hollander, sales manager, explains: ‘From a safe distance outside the tank the mini robot is controlled. ‘The Gerotto Tank Cleaner System is especially designed for sludge removal and cleaning of storage tanks and removes the need for man entry. ‘Safety is the main issue when it comes to tank cleaning and we are very pleased to be able to offer such an innovative solution. The robot is certified for ATEX Zone 0 areas, so it can be applied in every cleaning situation.’ HOW IT WORKS Den Hollander explains: ‘The robot is double tracked and can be equipped with a variety of accessories and options for sludge removal and cleaning. With the optional camera system, the person can operate the robot from a safe and conditioned area outside the tank. It can be used for tank cleaning on refineries or in
any other industry. It not only increases safety, but also reduces the amount of manpower and shutdown time.’ FUEL TANK CLEANING In addition to the tank cleaner the company also offers a system that is specially designed for fuel tank cleaning. This mini robot has three main functions: chemical product spraying, high pressure washing and sludge removal. The sludge and debris accumulated from cleaning are easily removed through the suction intake of the machine. This system is also suitable for work with vacuum trucks, suction excavators and industrial and dust aspirators. IMPROVED SAFETY ‘Feedback from our customers tell us that this new robot allows them to clean tanks, ducts, pipes and sewers in a safe and qualitative way,’ Arco explains. ‘The hydraulically controlled stainless steel robot is ideal for the inspection and cleaning of confined spaces. The main goal is to keep the operators a safe distance from the risk zone, especially in ATEX Zone 0 areas but also in other conditions.’ The robot enters the manhole using a winch or a ramp. From the control unit, the operator
01
has an overview of the work zone. The additional equipment comprises a wide range of high pressure cleaning heads, cameras and measurement tools that can be adapted depending on the situation. Arco says that the robot is a good example of changing requirements that the industry demands and the greater emphasis on health and safety as well as being cost effective. ‘Innovations like this are used more and more, and in my opinion will determine the future of the cleaning of storage tanks. In my experience, companies more often than not choose robots to avoid personal risks. ‘Thanks to new technologies, it is no longer necessary to expose people to dangerous working conditions. In this business that is a giant step that we really need to celebrate.’ 01 Schematic view using Gerotto Lombrico in ATEX Zone 0 02 Gerotto Tank Cleaner System Lombrico ATEX Zone 0 03 Gerotto Fuel Tank Cleaning 04 Images showing an abrasive cutting system in use, high pressure waterjetting nozzles, the cleaning of a bundle and surface cleaning
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JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL FEATURE l TANK CLEANING
DERC SALOTECH DERC Salotech is the partner for nozzles and accessories for a range of high pressure cleaning needs, surface cleaning, tank cleaning and pipe cleaning. The company configures nozzles, accessories and tools. Jetting guns, foot valves, adapters, (flex) lances, hoses, (semi) automatic machines and tools are all supplied to the latest safety and quality standards. The company engineers, designs and develops turnkey solutions for tank and reactor vessel cleaning with high pressure water jets; the DERC Tank Cleaning Positioning Device. This PLC controlled solution is fixed on the reactor vessel and operated from the factory’s control room. It cleans the reactor vessel with a high pressure 3D tank cleaning head. Fully automatic controlled it is positioned by a programmed cleaning cycle. A specially designed tank cleaning arm cleans tanks with less water and with greater precision. The system positions the cleaning nozzle on the correct spot for cleaning. The system is placed on the existing flanges and the arm can be moved by the pneumatic engines. DERC Salotech also designs and manufac-
02
tures a complete line of tools and solutions for abrasive waterjet cutting applications. The company offers a starter kit with a magnetic positioning track, air powered drive head, control panel, cutting nozzle and an abrasive hopper. The DERC standard cutting set is flexible and modular and therefor easily adaptable. In addition to this DERC Salotech
also offers customised solutions for specialist cutting issues such as: manhole cutters, pipe bands and internal cutters. The DERC abrasive cutting system can be used in with an existing high pressure installation. FOR MORE INFORMATION www.salotech.nl 03
ENSURING SAFETY, QUALITY AND EXCELLENCE Automation Civil and jacking ■ Electrical and Instrumentation ■ Engineering ■ Panelbuilding ■ ■
Piping and mechanical ■ Protective coating ■ Tank maintenance and construction ■
OUR OFFICE LOCATIONS
VERWATER GROUP BV
The Netherlands, Belgium, France, Oman, Singapore, USA
+31 (0)10 416 54 77 sales@verwater.com www.verwater.com
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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TRUST YOUR TANK’S PROTECTION TO TECHNICAL FEATURE l TANK CLEANING
04
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INTERNAL TANK LININGS
Our ARCHCO RIGIDON™ linings and coatings are designed specifically to protect steel and concrete surfaces from corrosion in aggressive environments.
EXTERNAL TANK COATINGS
United Kingdom, UAE & India www.denso.net + 44 (0) 20 8670 7511
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INTERNAL PIPE LININGS
USA & Canada www.densona.com + 1 281 821 3355
TANK BASE PROTECTION
Australia & New Zealand www.denso.com.au + 61 393 56 7600
South Africa www.denso.co.za + 27 31 569 4319
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
TECHNICAL FEATURE l TANK CRIBBING
PROTECTING A STORAGE TERMINAL’S MOST VALUABLE ASSET P rotecting the safety of workers as they carry out vital tank cleaning for inspection, maintenance and repair projects is of paramount importance for storage facilities, refineries and operators. Previously, when conducting aboveground storage tank cleaning, inspection and repairs, workers could only rely on antiquated wooden cribbing stacks, which could significantly compromise their safety. David Bush, the sole inventor and patent holder of the Delta P Technology was called upon to lead and perform IDLH confined space rescue missions in aboveground storage tanks for the past 15 years. In an interview with Tank Storage Magazine, he says: ‘The rescue missions that involved collapsed floating roofs were all recoveries. There were too many bodies and when one man was cut in half by a collapsing roof, I decided that enough was enough.’ ‘In this safety first driven industry why do we continue to use such a cave man style approach, which has killed hundreds of workers? No-one in the world has spent as much time under collapsed roofs and raising them as I have.’ However, a revolution in tank cribbing technology is set to reinvent the industry standard for worker safety by giving workers and operators a greater peace of mind. The Delta P Technology is based on an equilateral triangle shape. The ASME carbon steel coated structure – the Delta P Cribbing Tower can support a static load of 108,000 pounds with a 26,800 pound lateral load. Versabar conducted the certified tests and TEAM carried out the NDT testing of the components after being loaded to max. The engineers predicted the unit would fail at static load of 50,000 pounds and 14,000 lateral load. However, the equilateral triangle surpassed all expectations. The Delta P Cribbing unit has just 18 pieces and each individual piece weighs no more than 50 pounds. When completely assembled, it weighs less than one wood cribbing stack at 700 pounds. However it can be easily relocated by two workers as one piece and only takes three
people five minutes to completely assemble each unit. More importantly, it offers greater safety assurances thanks to its unique structure. Unlike wooden cribbing, the towers will not come apart during lateral roof movements/ rotations or collapse. The technology has been utilised on a recent tank inspection project at Alon USA Refining’s facility in Big Spring, Texas. The 110 foot diameter tank was taken out of service for its 20 year inspection and six Delta P structures were used. Joel Leonardi, director of safety at Alon USA Refining, explains: ‘Floating roofs have the potential to rotate if they don’t have anti rotation. With this lateral rotation the roof ends up rotating and collapsing dropping in height and it can cause the wooden cribbing structure to fall because they have not been built to accept that weight or the lateral load. ‘The Delta P would not fall over as the triangular structure makes it almost impossible, even if it is knocked over, it will continue to provide the same protection.’ More importantly it also provides a safe area
refuge for workers during roof collapse with a certified test of a 2.1 safety factor – it not only surpasses any current standards or practices, but it greatly exceeds them all. Leonardi adds: ‘We can always replace products and technology but we cannot replace people, they are our biggest asset.’ Patrick Bunning, maintenance planning supervisor at Alon USA Refining, who was involved in the tank project says: ‘In the past we would typically use wooden cribbing as it was the only option on the market as far as cribbing is concerned. ‘These carbon steel structures are 100 times safer than wooden cribbing and the number of structures we need is reduced as well which saves use time and money. ‘Years ago in the industry we didn’t even put cribbing structures in when working in a tank.’ ‘We would get in and work and clean without anything so when the wooden cribbing was introduced it was 100 times safer than having nothing at all. ‘That has been the industry standard ever since. This Delta P tower is an unbelievably
David Bush, CEO, Delta P with the tank cribbing tower
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TECHNICAL FEATURE l TANK CRIBBING
simple idea but it works and we think that it is great.’ The Adjustable Delta P’s can be adjusted from 3.0 feet to 6.8 feet and coated for longevity and ease of decontamination. The Standard Adjustable Delta P Cribbing Tower is 6.0’- 6.4’-6.8’. Most roofs pin at 7.0’, the adjustable range of the 8 inches in 4 inch increments allows compensation for sloping tank floors. The Standard Delta P Cribbing Tower is rated for a working load of 50,000 pounds to a maximum of 75,000 pounds. Leonardi adds: ‘Without a shadow of a doubt we will be using the Delta P structures. We have not only gained time on projects but more importantly the people that are working inside the structure of the tank feel more at ease and confident in the ability of the Delta P Cribbing Tower and it offers them peace of mind which means they can focus more on the job at hand. ‘When we have confidence in the tools that we are using to help us do the job we set up people for success.’ David Bush, CEO of Delta P Technology, is an international industry recognised expert in improving training standards, confined space operations, aboveground tank regulations, IDLH confined space rescue and incident command. He serves as a director of the Individual Qualification and Certification Institute of
The Delta P Cribbing Tower being utilised during a tank inspection at Alon USA Refinery’s facility in Big Spring, Texas
America, which provides the highest recognised level of certifications for Tank Entry Supervisors, Confined Space Rescue Teams and Safety Professionals. He is also the author of the STOP Accidents Safety Program. He adds: ‘I decided this must change. I searched for other technologies around tank cribbing and quite simply nothing existed. ‘Be the change you want to see’ is a quote that inspired me over the past four years and it took all of my 30 years of experience in developing a solution because there had to be a better way.
‘The Delta P Technology is so simple. It saves the environment and it saves lives and that is what is most important. ‘This is a win-win solution for everyone. The refineries get there tanks back in service faster than before, there is no damage and no-one gets injured or killed. And that is really what it is all about – I did this to save lives.’
FOR MORE INFORMATION www.deltaptechnology.com
COMPACT. POWERFUL. CONSISTENT RESULTS. Milton Roy Mixing side entry mixers provide the most efficient and cost effective fluid motion for storage tank operations. Our side entry mixers mount quickly and easily on the tank flange. The proprietary, small diameter SABRE ® impeller allows for reduced energy consumption, improved hydraulic efficiency, and easy installation.
Learn more about the most efficient side entry mixers for all of your crude oil and derivatives storage and blending tanks,
visit miltonroy.com or contact your local representative.
At the heart of mixing
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miltonroymixing.com
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TECHNICAL FEATURE l PUMPS
THE POWER OF PUMPS TO BRING ENERGY WELLS BACK TO PRODUCTION The implementation of a multiphase pumping project at an established energy well in the US has allowed low energy wells to be brought back into production. Crosbys Creek Oil & Gas is an independent American producer in Choctow County in Northern Alabama. These fields are older and have produced oil and gas for many years. Over time the natural reservoir pressure dropped off to a point where some wells were not able to overcome back pressure generated by the surface flow lines and the first stage separator of the process facility. The conventional alternatives considered by the operator involved increasing the flow line size and installing a low pressure first stage separator, which would be significantly larger. However after careful review of these alternatives, it turned out that the costs and necessary permissions by the appropriate authorities would have been significant and not economical. In early 2015 the company heard about multiphase pumping and approached Leistritz for more information. This more economic alternative caught the interest of the management as production was expected to remain for years to come. A contact was established with Leistritz (LATC) in Allendale, New Jersey and a project study was implemented. The target of the study was to
01
01 The multiphase wellhead system is completely selfsupporting 02 A L300 MPP unit installed at Crosbys Creek
LEISTRITZ L4MG PUMP The pump in the L300 Multiphase Well head system is the model L4MG 200/45 AHOKRO-G in high temperature execution. It is driven by a VFD controlled 400 HP electric motor at 1800 RPM with 3:1 turndown. The pump flow at 500 PSI differential pressure is 14000 BPDe (barrels per day equivalent).
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02
draw down the backpressure on the producing wells with the help of a multiphase wellhead pumping system to about 200 PSIG, which would allow all the wells to produce at an acceptable rate. To overcome the flow line pressure including some reserve, the pressure boosting of the multiphase pump had to be around 500 PSI in order to reach the line backpressure of 700 PSIG. The multiphase wellhead system (Model L300) based on the Leistritz twin-screw pump was selected, proposed and purchased in the summer of 2015. The system had to be designed for remote unmanned operation and, outside of power supply, it had to be completely self-supporting. Remote access of the operating parameters was achieved over the
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TECHNICAL FEATURE l PUMPS
internet by a secure access for the operator as well as for Leistritz. The liquid rates could vary between 300 to 1,000 BLPD and gas rates between 0.5 and 1 million SCFD. The combined flow rate at pump inlet conditions would be between 6,000 and 14,000 BPDe (barrels per day equivalent) corresponding to a GVF (gas void fraction) of around 95%. The flow regime was expected to be slug flow and heavy slugs could affect the multiphase pump unit. In order to seal and protect the pump and remove the heat of compression from the pump, a recirculation system was included, designed to gather liquids in a knock-out boot or separator downstream of the pump and circulate some of the liquids back to the pump suction. This system would assist the pump and provide the liquids necessary to maintain compression even during longer gas slugs. Other design features included a VFD controlled 400 HP 1800 RPM electric motor and a double mechanical seal system with the API Plan 54 seal flush. The complete unit with piping, valves, instrumentation and controls was designed and manufactured at Leistritz’s premises in New Jersey. Installation and commissioning took place in the second quarter of 2016 and the unit has performed as expected and adding significant production for the operator.
Bypass line Pipeline
Wellhead
Well flow (multiphase)
Leistritz multiphase pump
Valve Suction strainer
Motor
Non return valve
CONCLUSION This highlights the opportunities of using a multiphase pumping in lieu of other back pressure reducing alternatives. The multiphase pump together with VFD speed control has shown its flexibility to instantly adopting to actual field conditions and optimizing production with lower flowing wellhead pressure. One of the great features with the twinscrew multiphase pump is that pressure boosting is independent of inlet pressure giving the operator the best possible tools to produce aging and low energy reservoirs. FOR MORE INFORMATION This article was written by Sven Olson, senior consultant at Leistritz Advanced Technologies Corp. www.leistritz.com.
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A STRESS-FREE APPROACH TO LIFTING
T
he art of tank lifting is a complex and hazardous specialty and requires reliable and precise tools to ensure neither the tank nor the foundation are damaged. Several options are available for tank lifting operations however Mix Bros. Tank Services’ (MTS) approach, which involves using long single stroke jacks coupled with unified oil delivery provides a guarantee that the tank will be placed back in the same place that they were lifted from. The unified oil system means that if one jack is lifting a 100lb weight and another is lifting 30,000lbs, both jacks go up the same distance at the same time. The use of this oil delivery approach means that the tank is not placed under any stress. In an interview with Tank Storage Magazine Dave Morrison, vice president, explains that the method offers a range of benefits that systems such as shorter stroke jacks and airbags cannot provide. ‘The two other competing systems, short stroking hydraulic jacks and airbags, neither of them can easily ensure that the tanks go back in the same position that they were lifted from. In fact, it is nearly impossible for airbags to achieve this. ‘The short hydraulic jacks are not controlled by unified oil delivery, that simply are short so they just lift the foot or left and then top out. Blocks are then set around the tank and the process is repeated. Airbags are also a short stroke lift method, but it is impossible to lift 100% of the tank all at once. The tank much at one point during each lift be firmly on the cribbing or else the tank could roll off of the airbags due to their flexible nature.’ He adds: ‘MTS uses unified oil delivery and long stroke hydraulic jacks, which eliminates both these problems.’ STABLE IN BLUSTERY CONDITIONS The jacks have been engineered and tested to withstand wind speeds of up to 65 mph.
The unified oil delivery approach ensures that a tank will go up even without stress and the long stroke allows the tank to be placed back in the same position on its foundation
‘Once, when we were working at New Orleans airport, we got a wind reading of over 65 mph while we had a tank high lifted next to it, and our tank stood stable,’ says Morrison. ‘We also had two 120 foot tanks 10 feet high in our jacks, a very strong wind came and actually blew our cribbing out from under the tank yet our tanks did not move so their stability has been demonstrated.’ Due to the jacks high wind resistance and the ability to quickly lower the tanks if needed to, the system has proved popular in the industry. ‘Air bags and shorter jacks would need to lower the tank in several individual lifts while we can go down in one stroke very quickly compared to others,’ Morrison explains. TANK TURTLES Additionally, the tank lifting and foundation repair company also uses Tank Turtles to move large tanks. These turtles were used in the relocation of an ethanol storage tank at a Canadian oil company. The project came with challenges – the tank needed to be supported six foot above the ground to avoid obstacles including a dyke wall, pipelines, sump pit, guardrails and electrical boxes. The company’s experience and equipment was highlighted in a hazard assessment and proved that it was possible to combine unified hydraulic tank lifts with its hydraulic moving system to accomplish a safe high move. The procedure was performed with wooden safety blocking on hand as a secondary fail safe protection for workers and adjacent facilities. ‘The oil company was pleased with the safety and success of the move,’ says Morrison.
Tank Turtles are used to move both large and small tanks
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FOR MORE INFORMATION www.mixbros.com
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Looking For
More Performance & Profitability?
The need to increase performance and profits is at an all-time high. That’s why more liquid terminal operators turn to Blackmer ® for innovative pumping technologies that provide more energy savings, more flow and more uptime.
Process | Energy | Military & Marine
• Sliding Vane Pumps offer More Energy Savings • S Series Screw Pumps allow More Flow • System One® Centrifugal Pumps provide More Uptime
See Us at
ILTA
Booth 741 For more information, please go to:
blackmer.com
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
1809 Century Avenue SW Grand Rapids, MI 49503-1530 USA +1 (616) 241-1611 107 blackmer.com
EVENTS l ILTA PREVIEW
INDUSTRY EXCELLENCE AT THE ILTA The 37th edition of the ILTA trade show and conference returns to Houston, Texas but this year at the Marriott Marquis Houston. The highly-anticipated and well-known event promises its usual mix of industry leaders and experts sharing best practice as well as the latest innovations and technologies. The three day event offers an opportunity for thousands of professionals to discuss and share ideas to operate more efficiently and flexibly in this dynamic environment. We take a look at some of the companies at this year’s event… Advanced Polymer Coatings ATEC Steel
Harold Beck & Sons Honeywell
Blackmer
ICL Calibration Laboratories IRISNDT
Consolidated Fabrication & Constructors Dearman Systems Denso North America EN Engineering EnviroGear Pumps
108
Lemis USA Liquid Controls M. L. Smith Jr MidContinental Chemical Company MTS Sensors
OCV Control Valves OPW Engineered Systems Precision Filtration Products ProAct Services Corporation QMax Safety Lamp of Houston SOS Safety International W.L. Walker Company Waterline Tank Technologies
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EVENTS l ILTA PREVIEW
Advanced Polymer Coatings, based in Ohio, offers ChemLine high performance linings for storage tanks, providing specialised corrosion protection from a wide range of hazardous chemicals. The company formulates ChemLine coatings using a patented polymer system that resist corrosive attack, even against aggressive chemicals. The coating is in service worldwide at bulk liquid terminal facilities and chemical storage tank farms, and processing facilities. ChemLine has resistance to more than 5,000 chemicals including H2SO4, waste acids, 37% HCl, acetic acid, other aggressive acids, caustic soda, alkalis, solvents, hot oils, fracking materials, brine, edible oils, and more. Its formulation is based on a chemical matrix that crosslinks an organic polymer and an inorganic polymer to create high multi-functional capability and a virtually impermeable coatings surface. ChemLine has been extensively tested for chemical resistance, absorption, ease of cleanability, and other physical properties.
Visit Advanced Polymer Coatings at:
Blackmer, part of PSG, a Dover company and a global leader in positive displacement, regenerative turbine and centrifugal pump, and reciprocating compressor technologies. The company will feature its ML Series pumps, which are ideal for liquid-terminal operations that require high-capacity product transfer, top or bottom loading/ unloading and blending at the rack. ML Series pumps offer tremendous self-priming and high-suction capabilities that enable them to clear tanks of product more effectively and efficiently than competitive models. It will also showcase its STX Series pumps, which are ideal for loading and unloading corrosive and non-corrosive liquids that are not compatible for use with cast iron pumps. These pumps offer the best combined characteristics of sustained high-level performance, energy efficiency, trouble-free operation and low maintenance costs. S Series screw pumps from Blackmer will also be on display as well as its HD Series reciprocating gas compressors.
STAND 860 Visit Blackmer at:
ATEC Steel is a full service industrial contractor specialising in the design, fabrication and construction of above ground storage tanks that comply with API 650 standards. Additional services provided include API 653 tank repair, tank foundations, painting and insulation. ATEC Steel has a proven reputation for quality, safety and on-time completion.
Visit ATEC Steel at:
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
STAND 664
STAND 741
Consolidated Fabrication & Constructors is an industrial mechanical contractor serving the needs of leading petrochemical companies. Headquartered in Gary, Indiana, with additional facilities in Wilmington, Delaware, Tulsa, Oklahoma and Houston, Texas, the 32-year-old company has more than 500 employees to serve customers throughout the US, Puerto Rico, Bahamas and the Virgin Islands. The company’s services include above ground storage tank repair to new tank design and construction, pipeline maintenance and systems, refinery piping terminal piping, pressure vessels and more. Consolidated sets the industry benchmark for quality, reliability and safety, consistently performing safely, on time and within budget.
Visit Consolidated Fabrication & Constructors at:
STAND 650
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Dearman Systems will be showcasing the next generation of its terminal automation software, V5. V5 is compatible with Linux, Microsoft Windows Server 2008/2012/2016, and Microsoft Windows 10 (and newer) and executes under PostgreSQL or Microsoft SQL. V5 delivers an improved user experience, seamlessly managed updates, and increased security. A lead V5 developer will be on hand at the show to answer technical questions. Dearman Systems has nearly 30 years of experience providing terminal automation, enterprise management, and regulatory compliance solutions to the bulk petroleum, renewable fuels, and chemical distribution industries. Also on display will be Dearman’s popular RTG (ready-to-go) and TAS.net terminal automation software (for small and large operations, respectively) is utilised throughout the US and in diverse locations around the world. Dearman Enterprise Management is the executive side of terminal operations and provides multi-terminal unification, contract management, pricing, invoicing, and regulatory compliance capabilities.
Visit Dearman Systems at:
STAND 736
Denso North America is a leading manufacturer of Archco tank lining and coating products to protect tanks inside and out. Denso provides glass flake tank lining systems for internal corrosion protection for multitude of tanks, exchangers, knock out drums, chime areas, bund areas, pressure valves and internal pipes. These coatings and linings will protect against crude oil, seawater, wastewater, fuels, solvents, lubricants and acids. Denso also protects tank chimes by sealing gaps from corrosion and water egress with their simple tank base protection system. Denso also provides full line of pile protection systems. The SeaShield Marine Systems protect steel, concrete and timber pile piles. The 134-year-old company is recognised as a global leader in corrosion prevention.
Visit Denso North America at:
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STAND 614
EN Engineering provides comprehensive and dependable engineering, consulting, and automation services for terminals and pipelines. Its teams have first-hand experience in the design and operations of terminals and pipelines and its professional engineering consultants provide a range of services from initial project development and FEED studies, to detailed design and construction support. The company is has an in-depth knowledge of codes, specifications, and best practices relating to storage and transportation. Its professionals can provide a range of engineering solutions for mechanical, civil/structural, electrical, automation, cathodic protection and PSM.
Visit EN Engineering at:
STAND 765
EnviroGear Pumps, part of PSG, a Dover company and a global leader in internal gear pumps, will be showcasing its G Series internal gear pumps. These pumps have been designed with only two moving parts and operate equally well in both directions while providing a positive, non-pulsating flow. This innovative design also provides multiple inlet and outlet positioning, a single end-clearance adjustment and easy drive-end access for ease of maintenance and adjustability. EnviroGear G Series pumps are available in cast iron, carbon steel and stainless steel. They are extremely reliable, durable and cost effective for challenging industrial applications involving both thin and highly viscous liquids up to 431,000 cSt.
Visit EnviroGear Pumps at:
STAND 741
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Beck manufactures electric actuators for industrial control valves and dampers. Beck valve and damper drives are designed for continuous modulating or direct AC control, and are suitable for difficult industrial environments. Engineered to the high performance standards of today’s sophisticated control instrumentation, Beck’s electric actuators maximise final control element performance, providing responsive, repeatable actuation. Beck has been manufacturing in Pennsylvania since 1936. Beck offers a variety of linear and rotary actuators designed to make drop-in installation simple, while the rugged, weatherproof body rated for hazardous locations ensures safe operation anywhere in a plant environment. Harold Beck & Sons manufactures electric actuators in Newtown, Pennsylvania.
Visit Harold Beck & Sons at:
STAND 763
Honeywell has been a leader in terminal automation for more than 60 years. With the industry’s most advanced portfolio of tank gauging, loading, additive, blending, and proving and software solutions, the company helps terminals worldwide run more profitably, reliably and safely. Its industry-leading portfolio of tank gauging, loading, blending, proving and software solutions include: • The Enraf Fusion4 product line for loading, injecting and blending, including Fusion4 MSC-L, the world’s most advanced, 24-stream controller for loading operations • Advanced terminal automation software solutions, including Enraf Terminal Manager, the industry’s most powerful and comprehensive terminal automation solution • Enraf Flexline Radar and Servo tank gauges and Enraf SmartLine Level Transmitters for reliable, accurate performance, ensuring safety and efficiency • Honeywell’s Small Volume Provers, with precision and performance for unrivalled measurement certainty.
Visit Honeywell at:
STAND 349
We project Engineering • Construction • Assembly • Maintenance
CO.M.CE. S.p.A. - Compagnia Montaggi Cesena Via G. Marinelli, 6 47521 Cesena (FC) Italy Tel. +39 0547 29730 Fax +39 0547 21141 comce@comce.it – www.comce.it
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Don’t miss the August/September issue
1 industry leading magazine 7 events 3500 copies posted 8500 copies printed
No other publication comes close to this level of exposure: • Official media partner for Argus Africa Storage and Logistics conference, South Africa • Official media partner for Tank Storage Asia, Singapore
• Official media partner for 10th Annual National Aboveground Storage Tank Conference & Trade Show, Texas • Media partner, Tank Storage Association, UK • Media Partner, Asia Downstream Week
• Media Partner, Bulk Liquid Storage Europe 2017
• Media Partner API Tanks, Valves & Piping Conference & Expo, Seattle
Direct access to potential customers worldwide: Despite unrivalled event distribution at 7 events, we never rely on this alone. The August/September issue will also be posted to 3,500 terminal professionals around the globe and this circulation is always independently audited.
The deadline is the 14th August. Contact David Kelly David@tankstoragemag.com to book your space now JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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ICL Calibration Laboratories is an ISO/ IEC 17025 accredited calibration laboratory offering A2LA accredited, NIST traceable calibration services for thermometers, hydrometers, weights and volumetric glassware. ICL is also a leading supplier of glass thermometers, digital thermometers, hydrometers, petroleum glassware, weight sets, viscometers, viscosity standards, Thermoprobe digital gauging thermometers, Lufkin oil gauging tapes, MMC Intl. Tri-Mode (UTI) gauging tapes, as well as much more gauging equipment and accessories.
Visit ICL Calibration Laboratories at:
STAND 552
IRISNDT is a full-service non-destructive testing and integrity engineering company, owned and operated by NDT personnel. One of the largest independent NDT and integrity engineering service companies in North America, it has grown into the UK and Europe. It offers standard NDT services, advanced NDT technologies (including automated ultrasonics), integrity engineering/laboratory services and data management, heat treating, bolting, rope access, and software development. It employs more than 1,000 staff. Its success has been built on credibility and reputation, which can only be achieved by retaining long-term customers and reliable highly trained, committed and happy employees.
Visit IRISNDT at:
STAND 218
Lemis USA will be presenting its DUTI-454 Servo tank gauging system, a product for a full tank inventory. DUTI-454 is a one of a kind automatic all-in-one multiparameter instrument that can measure density profile, ullage (level), temperature profile and interface profile (water detector). Some of the few optional parameters that the same probe can measure include: emulsion profile and viscosity profile. DUTI-454 can also calculate volume and mass. The Servo mechanism scans the tank from top to bottom, while the device takes the measurements to provide high accuracy readings. DUTI-454 Servo tank gauging system is a versatile and reliable instrument any tank inventory control.
Visit Lemis USA at:
STAND 117
Liquid Controls will be introductng the NTEP & M-Canada custody transfer approved LCMASS Coriolis mass meters. The LCMASS 100 is a straight dual tube design, is compact and economic, and provides high accuracy for general purpose mass and density measurement applications. The LCMASS 600 is a bent dual tube design used in applications demanding the highest flow and density accuracy. Both the LCMASS 100 straight tube and LCMASS 600 bent tube design received NTEP and M-Canada approvals for bulk transfer of LPG in the US and Canada. These approvals ensure that LCMASS Coriolis mass meters offer superior performance for mass and density measurement of high-value fluids and gases. Liquid Controls provides custody transfer approved positive displacement meters, turbine meters, and now Coriolis mass meters, as well as a variety of other accessories.
Visit Liquid Controls at:
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45,000 copies printed Distributed at 35 events Thousands of readers Unlimited exposure 2017/2018 media pack out now – contact David Kelly for a copy david@tankstoragemag.com +44 (0)203 196 4401
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The leading event for the Asian tank storage industry
REGISTER FREE TODAY Over 1,600 visitors
New technology
& product launches
80+ global
suppliers
2 day
conference
Show supporters
Serving the tank storage community globally MIDDLE EAST AFRICA 25 & 26 NOVEMBER 2015 - HAMBURG MESSE, HAMBURG
Register FREE today gg www.tankstorageasia.com 116
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
EVENTS l ILTA PREVIEW
TWO DAY CONFERENCE The two day conference runs alongside the exhibition every year, hosting an expert line up of industry speakers - you will leave with new ideas, inspiration and growth plans for your business. For anyone looking to grow, invest or simply thrive in the Asian storage sector, as well the opportunity to network with your industry – Tank Storage Asia is the place to be.
Meet some of our speakers:
Andersen Ang, Deputy General Manager, PT. Taruna Bina Sarana (Linc Group)
Olivier Lejeune, Oil Storage Market Analyst, International Energy Agency
Marat Zapparov, Director, Infrastructure Clifford Capital
Chye Poh Chua, CEO, Ships Focus
Mukesh Prikh, Senior Consultant, SmartHead Consulting
Jon Ornolfsson, Partner, England & Wales, Ashurst
Topics include: • • • • •
Keynote presentation: Global supply and demand, and global storage trends Outlook for Indonesia’s storage market Structuring & financing projects Legal issues surrounding terminal transactions Storage developments across the Middle East and how Fujairah compares as a regional storage hub
Our conference is CPD certified
Other speaking companies include:
Book your seat today gg www.tankstorageasia.com JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
Organised by 117
Visit the future
EVENTS l ILTA PREVIEW
MidContinental Chemical Company has built its reputation for meeting and exceeding customer expectations since 1994 and is recognised as a leader in the fuel and lubricant additive industries. The company provides a full range of precisely formulated fuel additives, from petrol additives and lubricity additives, to specialty products, such as its patented stress corrosion cracking inhibitors. Its responsive and cost-effective fuel additive programs can be delivered virtually anywhere in North America. Its products, innovative programs and specialised services differentiate its customers in the marketplace, while also reducing their operational costs and improving their profitability.
M. L. Smith Jr. designs and builds shop fabricated AND field erected API storage tanks, API 653 storage tank repairs and ASME code pressure vessels. The company is involved in the design, new construction, maintenance repairs, demo, retrofits and replacements of carbon, stainless steels, alloys and duplex steel. Its field personnel are well versed in various industries and carry TWIC, HAZWOPER, OSHA and MSHA certifications. M. L. Smith, Jr. is located in Ruston, northern Louisiana and has been operating since 1975. It has a 35,000 SF fabrication facility on 10 acres of land. It performs work throughout the US with a safety-first mind set.
Visit M. L. Smith Jr. at:
Visit MidContinental Chemical Company at:
STAND 558
40 YEARS VACONO
STAND 419
Aluminum geodesic dome roofs are used to cover storage tanks up to 120 m diameters in the petroleum industry.
WORLDWIDE MORE THAN 6,000 REFERENCES
• Extreme Light-Weight Construction • Corrosion Resistance • Low Maintenance • Low Erection Cost • Minimum Emission
Visit us 2017
PONTOON SYSTEM
in Houston at booth no. 876
Low maintenance internal floating covers to limit the emissions which occur where volatile hydrocarbons are stored. • Payback time < 6 months • 9 different designs available • Choice of Aluminum, Hybrid AL-SS, Stainless Steel • Pontoon design for best price /cost ratio • Full Contact Design for maximum efficiency • Suits all known storage products
FULL CONTACT SYSTEM
NEW Our new generation, unique engineering: Aluminium Full Contact IFR
GERMAN QUALITY WORLDWIDE
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CONTACT US: Vacono Aluminium Covers GmbH www.vacono.com vacono@vacono.com
Vacono America LLC www.vacono.com info@vaconoamerica.com
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
EVENTS l ILTA PREVIEW
10th ANNUAL NATIONAL ABOVEGROUND STORAGE TANK CONFERENCE & TRADE SHOW
Moody Gardens | Galveston, Texas | September 13-14, 2017
F R E E T R A DE S H OW • Conference Sessions
• Welcome Reception
• Free Trade Show
• Cocktail Mixer on the Trade Show Floor
• Free Aviation Conference • Co-Located Events
NISTM
NATIONAL INSTITUTE FOR STORAGE TANK MANAGEMENT JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
• Golf Tournament
www.NISTM.org | 800.827.3515 International 011.813.600.4024 119
EVENTS l ILTA PREVIEW
MTS Sensors has expanded the capabilities of its new LP-Series liquid level transmitters. MTS has added an analog (4-20 mA) output with HART to accompany the previously released Modbus RTU digital output. Both outputs are available on all four models of the LP-Series including Tank Slayer, RefineME, SoClean, and Chambered. Tank Slayer is targeted at the bulk storage industry featuring 3-in-1 measurement of the product level, interface level, and average temperature from up to 16 measurement points. Tank Slayer also features gross volume output from up to a 200 point strapping table and net volume from integral API temperature correction tables for 6A, 6B, and 6C. No other automatic tank gauging system can provide so many features from a single device that is easy to install and fit almost any tank without tank modifications.
Visit MTS Sensors at:
STAND 421
OCV Control Valves was founded more than 60 years ago with a vision and commitment to quality and reliability. OCV control valves are hydraulically operated, diaphragm actuated globe or angle valves, sizes 1-1/4” to 24”, which operate automatically from either line pressure or an independent hydraulic source. OCV Control Valves provides automatic control valves for a variety of terminal service environments, including fuelling distribution, fuelling transfer and storage solutions, such as tanks, metering systems, loading terminals, truck loading, and truck/rail car unloading. Its valves meet or exceed industry standards around the world, including a quality system that is registered to ISO, FM Approval, certification to 97/23/ EC PED, UL Listed, ABS type approved product and many other industry-specific certifications. It also offers the most comprehensive 5-year product warranty in the industry.
Visit OCV Control Valves at:
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STAND 559
OPW Engineered Systems, part of OPW’s fluid segment within Dover Corporation, will showcase its new ‘total terminal solutions’ at this year’s show. ‘We’ve worked hard to position ourselves across the industry as one stop with unlimited solutions,’ says Dave Morrow, director of product management for OPW Engineered Systems. ‘Having a complete terminal package streamlines the whole planning and ordering process for our customers,’ he adds. As the only manufacturer of every type of loading arm in existence, and through vertical integration, OPW Engineered Systems offers a comprehensive line of terminal equipment including loading arms, swivel joints, couplers, electronics and accessories. ‘Our goal is to provide the best terminal product solutions for all applications,’ adds Morrow.
Visit OPW Engineered Systems at:
STAND 741
Precision Filtration Products is a full service filtration products supplier. From complete engineered filtration systems to technical support on existing systems, the company has the resources and technical know-how to efficiently and cost effectively assist companies in meeting their filtration project goals. The company provides for low pressure to high pressure, simplex or duplex designs, complete skid mounted systems to drop in replacements or upgrades. In addition, since 1994, PFP has steadily built one of the largest rental filter pressure vessel fleets in the country. Pre-filters, clay treaters, water removal, flushing skids to pipeline pigging vessels are available for same day delivery. Precision Filtration Products staffs full service support for existing or temporary systems.
Visit Precision Filtration Products at:
STAND 451
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
EVENTS l ILTA PREVIEW
ProAct Services Corporation specialises in providing innovative air and water treatment solutions customised to address specific environmental issues. With an emphasis in on-site water treatment, industrial degassing/vapour control, environmental remediation, the company provides services throughout the US and beyond. Safety, compliance, and efficiency are key to ProAct’s success. ProAct maintains a large fleet of portable thermal oxidizers and internal combustion engines for degassing and vapour control operations. Its thermal oxidizers handle vapour flow rates up to 10,000 cfm, ranging in size up to 25mm BTU/hr. The company operates its equipment to meet stringent efficiency standards. Compliance requirements mandate specific levels of efficiency and documented support. ProAct’s staff training program addresses all technologies, and emphasises safety and efficiency. ProAct provides high quality water treatment systems and water filtration equipment, specifically designed for hydrostatic test water treatment, tank bottom water treatment and dewatering water at terminals and tank farms.
Visit ProAct Services Corporation at:
STAND 845
QMax specialises in high-performance steam, hot oil, glycol, and electric tracing, equipment jacketing, and tank heating solutions for critical high temperature liquid applications in the oil and gas, petrochemical, and chemical industries. Its QFin product incorporates several unique design innovations to deliver breakthrough performance when compared to traditional fins or other heating solutions for tanks. QFin is a clamp-on, removable horizontal fin that is strapped to the internal tank coils. The greatest impact of using QFin is the reduction of internal coil structures (up to four times reduction in needed coil length). QFin protects the heating coil in a coking event in that only the removable fins have to be replaced. This significantly reduces down time and maintenance costs.
Visit QMax at:
STAND 819
THE SCREW PUMP EXPERTS screw pumps and systems made in Germany since 1924 complete screw pump range: single volute 2-, 3-, 5-spindle and double volute 2-spindle wide range of applications from crude oil to final product
» Visit us at OTC: Hall B Booth 3815-2 and Brasil Offshore in Macaé: Booth A39 «
www.leistritz.com | pumps@leistritz.com tankstorage_17.indd 1 JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
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There should be no compromise when it comes to safety and Safety Lamp of Houston can customise hazardous area lighting to provide protection for specific Zone 0, 1, & 2 areas. Whether it be gases, mist, or dust, confined space, damp or wet areas, the company can provide intrinsically safe lighting for any environment. Its solutions could include anything from a small personal penlight, head lamp, flashlight, hand lamp, inspection light, battery operated worklight, electric corded LED and fluorescent tank lights with or without transformer, to its compressed air driven Airturbo and Turbolites, which do not need an electric cord. There is a light or combination of lights for every hazard
Visit Safety Lamp of Houston at:
STAND 683
SOS Safety International provides premier firefighting and oil spill containment equipment, training and consulting. Moreover, products to build or replace the fire water line. Established in 1992, the company provides innovative solutions. The company utilises its expert P.E. engineers and industrial emergency response specialist TEEX certified instructors can help further optimise a terminalâ&#x20AC;&#x2122;s safety requirements.
Visit SOS Safety International at:
STAND 459
REGISTRATION NOW OPEN
TSA
Tank Storage Associa on
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2017 TANK STORAGE CONFERENCE & EXHIBITION 28TH SEPTEMBER AT THE RICOH ARENA Visit our new website at www.tankstorage.org.uk for details.
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EVENTS l ILTA PREVIEW
W.L. Walker Co. was established in 1926 by William Lee Walker, co-inventor of the Tulsa Oil Thief. Throughout the 90 year history of the family business, other measurement devices have been added to the line, including the Lufkin gauging tapes and Plumb bobs and various other products. The third and fourth generations of Walkers have expanded the Walker product line by developing industry leading temperature determination devices. The company will be showcasing its latest generation of digital devices, the Walker Judge, a four-channel master capable device at the ILTA show.
Visit W.L. Walker Co. at:
STAND 623
The Twister by Waterline Tank Technologies helps minimise the downtime needed for offline cleaning and/ or tank entry. The Twister fits into a tank manway and features a submerged jet mixer to refluidise the solids and tank bottoms for processing. When permanently installed on the tank, Twisters also provides a method for online tank cleaning, so that the tank only needs to be opened for mandated inspection intervals. The Twister works by taking suction from the tank with a properly-sized recirculation pump, and pumping the product (sometimes diluted with cutter stock) back into the tank through the manually adjustable Twister nozzle. The Twister’s nozzle creates a powerful jet of the tank contents that is directed across the bottom of the tank, which dissolves and re-suspends accumulated sludge. A version of the Twister known as the ‘Hot Rod’ is available for applications where the manway cannot be opened.
Visit Waterline Tank Technologies at: STAND 121
WORLDWIDE D E L I V E RY OF ENGINEERED TANK PRODUCTS
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EVENTS l STOCEXPO EUROPE REVIEW
GETTING CREATIVE WITH STORAGE
T
he storage market is thriving with activity as a result of changing supply and demand dynamics, altered trade flows as well as the IMO bunker fuel specification regulation changes in 2020. Currently, 226 million barrels of capacity is under construction globally, which equates to 2.3 additional days of global consumption. Against a backdrop of transition in the energy markets, operators are looking to future proof their assets. The 13th StocExpo Europe in Rotterdam delivered compelling conference content as well as a thriving exhibiton floor with almost half of the showfloor launching new products and services.
THE ROLE OF TECHNOLOGY The first day of the conference looked at arguably two of the most important aspects of terminal operations – how to optimise performance and keep customers happy. Digitalisation and the need for brokering services were both hot topics. Participants were undecided on how much brokering can be used to enhance the terminal business. Abel Noordanus, commercial manager of Odfjell, spoke about how he benefitted from brokering services. Martijn Notten, CEO of Vesta Terminals, on the other hand, was of the opinion that a terminal’s marketing skills can often be sufficient to promote its available capacity. Noordanus went on to explain how Odfjell uses terminal simulation software to improve its customer service. ‘People often think that simulations should only be used when a terminal is first being built’, he explained, ‘but you can use them any time to streamline operations and reduce turnaround times.’ When it came to the use of technology, the panel were in agreement. ‘Over the next four to five years the storage industry will do far more of its business online,’ chair Tony Quinn predicted. It was clear that the so-called ‘traditional’ storage industry needs to move with the times. By 2020 the average purchaser will be someone from the 90s who is used to working with the likes of Facebook and other forms of social media. ‘Don’t underestimate the speed at which new technology will arrive,’ Laurent Hatzopoulos,
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A world with high oil prices does not exist like it used to Giacomo Boati, director of energy at IHS
manager of third party storage at Shell Trading explained. ‘Either you uber an industry or you get uber-ed,’ he added. The morning’s panel concluded by finding out what Shell looks for in a storage terminal. ‘Health & safety is paramount,’ Hatzopoulos explained. ‘This is closely followed by flexibility, responsiveness of company’s staff, transparency & compliance.’ MEDITERRANEAN OPPORTUNITIES The Mediterranean is a key conduit for international trade and as such offers a wealth of storage opportunities. Luis Sala, managing director of Tepsa said that following a period of
imbalance as a result of the economic crisis, supply and demand now seem to be entering an equilibrium. He told delegates that chemical product storage is a more attractive business proposition for the company rather than oil product storage as the chemical industry is a ‘strong and consolidated business’. ‘We see optimistic growth in the chemical industry,’ he said. ‘It is a much more predictable market and less erratic.’ He also explained more about the Mediterranean corridor, which connects the Spanish and Mediterranean markets to central Europe as well as the company’s expansion plans in Tarragona. Moving from west to east, Effie Milutin, deputy general manager, commerce and marketing of EAPC set the case for why Israel is the land bridge for oil transit. He observed that there is a significant growth in refining capabilities close to production areas in the Middle East and that there is also a significant demand growth for energy products in the Far East. He explained: ‘More than one million barrels per day of refining capacity is coming on stream in the Middle East that will serve the eastern hemisphere. We have to think about this and prepare ourselves for that.’ He also explained more about EAPC’s unique reverse
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flow project and its crucial role in transporting crude to east Asia. THE IMPORTANCE OF EMERGENCY RESPONSE PLANNING Delegates also received insights into managing risk and the importance of emergency response planning with presentations from NuStar and VTTI. Rene Braaksma, HSE manager of NuStar Energy explained more about the implications of the Seveso directive, which requires some 400 European companies to complie a safety report and demonstrate how they can respond to fire incidents. He also highlighted aspects of the company’s Amsterdam terminal safety report and what risks were present for operators and how to mitigate them. This involved a two point solution, which included a stationary foam system and automatic detection as well as an improved training programme with more training and greater familiarisation of the equipment. He said: ‘Operators are positive on this new approach as it gives them more tools and more knowledge on systems and situations.’ Global HSE director of VTTI Margit Blok emphasised the importance of emergency reponse planning to ensure effective risk management. Drawing on examples from the Chemie Pack fire in January 2011 as well as a fire at Shell Moerdijk in June 2014, Blok said that being prepared for the inevitable requires flexible emergency planning with upscaling, mobile equipment and trained fire fighters. She said: ‘Crisis communication planning is key to reputation damage control.’
including price differentials, refining operations and ultimately trading and storage.’ He also discussed how wider global trends, such as the low oil price as well as the factors driving oil demand are likely to change in the future. He forecast that the oil price will increase very gently to around $80 per barrel by 2025 and that this low price is as a result of the ‘supply shock’. ‘A world with high oil prices does not exist like it used to,’ he said. ‘But this is good news for the demand side.’ On the demand side, the future supporting drivers are GDP, population levels and vehicle fleet growth and these will remain strong in emerging regions according to Boati. On the refined products side, the Middle East, Asia and Africa will experience the strongest demand growth. In the Middle East and Asia especially, refining capacity will become more complex while capacity in Europe will only change marginally. He summarised that globally, significant imbalances will prevail, which provides the basis for a sustained need for refined products storage capacity. ‘Changing trade dynamics are predicted to decrease storage requirements for dirty products and increase storage requirements for middle distillates in the medium term,’ he added.
IMO REGULATIONS Focusing on the IMO regulations and the implications it will have for the storage sector, Eugene Lindell caught the attention of the conference by saying that the 2020 shift will be massive, and will potentially impact three million barrels of high sulphur fuel oil. He said that it cannot be expected that high refining rates will ‘make up’ the need for the 0.5% compliant fuel. ‘People will get creative,’ he said about the oversupply of fuel oil in 2020. He also said that storage plays will remain part of the balancing process. He forecast that there would need to be 34 days of forward cover when the new regulations come into force and that stock builds would need to start 12 to 18 months before the start of 2020. Erik Klooster, director at VNPI agreed that it will have a huge impact on refining and also a significant impact on storage. The morning session finished with an outlook on global storage markets, with Onur Capan from VTTI, PJK International’s Patrick Kulsen and Chris Barry from Wood Mackenzie providing insights. StocExpo Europe will return for its 14th edition at the Ahoy Rotterdam on March 20 – 22, 2018. For more information visit www.stocexpo.com
AN UNCERTAIN MARKET There remains a great deal of uncertainty when it comes to global energy markets – particularly when it comes to the effects of the IMO regulation changes in 2020. This particular legislative change, which means that the sulphur cap for marine fuel will reduce from 3.5% to 0.5% in 2020, was a key talking point during the second day of the conference. Giacomo Boati, director of energy at IHS, told delegates this landmark change is one of the biggest unknowns in the industry. ‘It’s having a big impact on various factors
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EVENTS l ILTA PREVIEW
2017 API TANKS, VALVES, AND PIPING
CONFERENCE AND EXPO OCTOBER 23-26 | SEATTLE, WA
SHERATON SEATTLE HOTEL The 2017 API Tanks, Valves, and Piping Conference and Expo will give attendees an opportunity to learn about new and existing industry codes and standards, and to hear about emerging trends from industry experts. This two-day conference offers over 50 sessions addressing the needs of individuals involved in production systems, pipelines, terminals, refining and chemical manufacturing, and storage facilities. Each day focuses on presentations relevant to upstream, midstream, and downstream. Co-Located with the API Safe Tank Entry Workshop
Register at www.API.org/tvp
Copyright 2017â&#x20AC;&#x201C; American Petroleum Institute, all rights reserved. API, and the API logo are trademarks or registered trademarks of API in the United States and/or other countries.
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A GLOBAL STORAGE HOT SPOT
B
oasting the strongest oil supply in the market thanks to strong output from Iran, Iraq and Saudi Arabia it is not hard to see why the Middle East remains a key focus for storage developments and expansions. A total of 17 million barrels of storage is currently under construction and almost all of it is focused in the UAE – the fourth biggest oil producer with production averaging at 25 million barrels per day. Attendees at the two day StocExpo Middle East Africa exhibition and conference found out more about the opportunities in this flourishing region, which is a key trading and storage conduit for global energy. Delegates received insights into the Middle Eastern trading markets and their role in global oil demand and supply from Christof Rühl, global head of research at Abu Dhabi Investment Authority. As the former chief economist of BP for seven years, Rühl’s presentation was eagerly anticipated. He gave delegates a synopsis of how oil prices normally affect market conditions and why this year’s OPEC’s cuts have not led to a dramatic increase in oil prices. Between 2011-2014 was the period with the highest ever oil price and the lowest annual volatility. The price was stable for around three years and everyone thought that $100 a barrel was the new normal. But in actual fact the price only appeared stable as oversupply from the growing shale market was being offset by supply disruptions in the Middle East. Then, when the summer of 2014 saw additional oil re-enter the market from places such as Libya and Russia, prices dropped rapidly. When much needed OPEC cuts were introduced earlier this year, the price began to rise again. However Rühl noted that crude prices are highly likely to drop to $40 a barrel or below unless OPEC and allied producers extend their collective cuts in output beyond June. The six-month cuts that took effect in
With such high inventories the oil price struggles to rise
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January have set a floor for prices, but an increasing supply of US shale oil (due to producers getting more efficient), together with record-high inventories are keeping the per-barrel price of crude from rising beyond the upper $50s. Projections are that there are 400-700,000 barrels a day of oil being produced from the shale basins alone. He said: ‘If we assume there’s a demand excess every day of 200,000 barrels it would take 4-5 years to get through the inventory that is currently in storage. With such high inventories the oil price struggles to rise.’ If the OPEC cuts are extended by another year the inventories should decrease by around 3-7 million barrels. Rühl concluded by noting that whereas normally low oil prices lead to a boost in economies, this usual pattern hasn’t appeared this time around. This means oil price has a smaller impact on global politics that it has in the past. STORAGE HOT SPOT Patrick Kulsen, MD of PJK International highlighted the Middle East’s continuing importance as a ‘global hotspot for investment, not only by the tank storage industry […] but other downstream sectors too’. He noted that there has been considerable growth in demand, which is set to reach 1.2 million barrels per day in 2022. The significant investments in refining capacity has resulted in increasing refinery runs. This surplus – around 1.3 million barrels per day – could be exported to Asia, Europe and America. The Port of Fujairah remains the main trading hub for the region thanks to its role in the bunker fuel market as well as offering petrol blending and trade. He concluded by stating that oil products demand will increase and so will imbalances as a result of growing refinery capacity and run rates. Also, favourable dynamics in the regions key export markets, namely Africa and Asia, will also have a positive impact. He also predicted that the contango market may switch to backwardation in the second half of 2017. During a panel session discussing whether the region is ‘over saturated’ with tank storage, Kulsen noted that there is ‘a lot of uncertainty’ as to whether all the planned capacity additions, which would equate to a growth of 14%, would actually go ahead. ‘It depends on the demand front from the customer side.’ Tony Jouzy, MD at Solvochem, added: ‘There is concern there could be an oversupply. Will Fujairah remain the main hub because of current economic and political situations? It is reliant on the downstream projects and refining projects.’ Presentations were also given on oil pricing, how tank storage is performing in certain markets as well as financing options in the sector. The show will return to the Dubai World Trade Centre on April 17 & 18, 2018. For more information visit www.stocexpomiddleeastafrica.com
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ADVERTISERS’ INDEX
ADVERTISERS’ INDEX
Alliance Tank 9 API Tanks, Valves and Piping Conference and Expo 126 ATEC Steel 95 AUMA 67 Bechtel 92 Blackmer 107 BOXY 75 Brodie Outside Back Cover Cashco 38 CB&I 58 COMCE 112 Consolidated Fabrication 82 Crane 14 CST Covers Inside Front Cover Denso 100 EEMUA 57 Emerson 3 Fisher Tank 54 Fort Vale 89 Full Most 81 Great Basin Industrial 36 HMT Front Cover, 29 Inter Tank 19 Inter Terminals 7 James Machine Works 88 Kanon 44 Koike 40 Korting 55 Krohne 11 Leistritz 121 Matrix 48, 64, 65 MESA 103 Mesa ETP 123 MFE 111 Midwest Steel 12 Milton Roy 102 MTS Tank Services 43 Netzsch 23 Newson Gale 105 NISTM 119 Nordic Storage 13 OPW 56 PALA Interstate 71 Parker and Son 15 PLS Construction 83 Pond and Co 94 Port of Amsterdam 51 Protego 77 Rapid Fire Protection 32 RBW Enterprises 17 Rosen 50 Scully 114 Solventas 78 Tank Connection 84 Tank Cribbing/ Delta P 60,61 Tank Entry Supervisors 16 Tank Storage Asia 116, 117 Tank Storage Association 122 Technip FMC 72 Technodyne 39 United Riverhead Terminal 18 Vacono 118 Verwater 99 Willbros 35 WOYT Industries 5
STORAGE IS GETTING SOCIAL What the storage terminal sector has been saying on Twitter. Follow @tankstorageinfo for the latest news. @ZyiteGadgets Iran on verge of adding 5 mb to oil storage capacity
@steam_oil Offshore inventories went first, now it’s onshore storage’s turn.
@HermsTheWord #Oil market structure “is not telling me this is a market that’s trying to draw” barrels from storage, @aroilconsult says #PlattsCOS #OOTT
@JavierBlas2 And Cushing, the Oklahoma town that’s the delivery point of the WTI #oil futures contract and a key storage center, also full #OOTT
@EinsteinMillan At current market conditions there is no incentive for offshore oil storage as contango is actually narrowing
@Dry_Observer China buying all that oil was critical to preventing a global storage overflow & formed a floor under prices.
@PainCapital #oil peeps. Chill. Your expectation of massive US crude storage draws will NOT come during seasonal build periods. Not rocket science.
@chris1reuters #China demand drives sales of crude #oil from #Singapore storage tanks to 11-month high #OPEC #OOTT #Saudi #Iraq
@business Libya is pumping the most oil since October 2014, adding to OPEC’s burden
Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2017 US Institutional subscription price is $243. 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 Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.
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EVENTS l CALENDAR
EVENTS 2017/2018 JUNE 2017
25th October - 26th October
7th - 9th June
MEDIA PARTNER
Terminal management logistics for traders The Netherlands www.oilterminalmanagement.com/en
Dubrovnik, Croatia www.wplgroup.com
NOVEMBER 2017
12th - 14th June
SILVER SPONSOR
ILTA
29th - 30th November 2017
Houston, Texas
Tank Storage Germany
www.ilta.org
Hamburg Messe, Hamburg
29th - 30th June
MEDIA PARTNER
Bunkering & Storage Asia Novotel Clarke Quay, Singapore www.platts.com/events/asia-pacific
OFFICIAL PUBLICATION
Now in its 4th year, Tank Storage Germany is the industry’s dedicated exhibition and conference for the German bulk liquid storage industry. The show brings together suppliers with senior level executives, terminal managers and key decision makers from the region’s oil majors, ports, terminals and institutions to meet and place business. www.tankstoragegermany.com
DECEMBER 2017
SEPTEMBER 2017 13th - 14th September
MEDIA PARTNER
Bulk Liquid Storage Europe 2017
13th - 14th December
OFFICIAL MEDIA PARTNER
NISTM
OFFICIAL PUBLICATION
StocExpo China Shanghai World Expo and Convention Centre, Pudong, Shanghai, China
Galveston, Texas www.nistm.com 27th - 28th September
OFFICIAL PUBLICATION
StocExpo China is the latest addition to the StocExpo and Tank Storage portfolio of events dedicated to the bulk liquid storage industry. The inaugural event will take place in December 2017 at the Shanghai Exhibition Centre. www.stocexpochina.com
Tank Storage Asia Marina Bay Sands, Singapore The two day exhibition and conference returns to the Marina Bay Sands featuring leading international manufacturers and suppliers as well as industry experts from across the supply chain. www.tankstorageasia.com
MARCH 2018 20th - 22nd March 2018
OFFICIAL PUBLICATION
StocExpo Europe Ahoy Rotterdam, Rotterdam, The Netherlands
28th September
MEDIA PARTNER
Tank Storage Association Ricoh Arena, Coventry, UK www.tankstorage-event.org.uk 30th September - 3rd October
MEDIA PARTNER
EPCA 51st annual meeting
The 13th edition of StocExpo Europe will take place in the heart of the ARA region, Rotterdam. The three day conference and exhibition is the largest international event for the bulk liquid storage industry. www.stocexpo.com
APRIL 2018
Berlin, Germany
17th - 18th April 2018
www.epca.eu
StocExpo Middle East Africa
OFFICIAL PUBLICATION
Dubai World Trade Centre, Dubai
OCTOBER 2017 23rd - 26th October
MEDIA PARTNER
API Tanks, Valves & Piping Conference & Expo
Situated at the heart of the major oil trading hub, this 2 day exhibition and conference is perfectly placed to allow storage professionals from across the area to capitalise on this growing market and maximise their business potential. www.stocexpomiddleeastafrica.com
Sheraton Seattle Hotel, Seattle, Washington www.api.org
JUNE 2018
25th - 26th October
MEDIA PARTNER
11th - 13th June 2018
Asian Downstream Summit
ILTA
Sands Expo & Convention Centre, Singapore
Houston, Texas
www.downstream-asia.com
www.ilta.org
JUNE/JULY 2017 VOLUME 13 ISSUE NO.3
SILVER SPONSOR
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