Tank Storage magazine - September/October 2013 by Woodcote Media Ltd

The voice of the storage terminal industry

september/october 2013

Volume No. 9 Issue No. 5

New fuel = new opportunity Demand is growing for LNG as a marine transport fuel, so what does this mean for storage operators?

Regulatory update Jane Besch, CPP manager for operational excellence at Vopak Americas, takes a look at the regulatory agenda affecting terminal operators

Developing a safety culture A terminal manager, who worked at Tosco for many years, discusses how he changed attitudes to safety at four terminals in northern California

regional focus: tank storage in africa

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comment

Margaret Dunn Publisher

Not a time for complacency It is rare we hear the words ‘falling profits’ in the same sentence as Vopak, the world’s largest storage operator. But for the first half of this year that is exactly the situation the company is facing, albeit profits have only dipped by 5%. The company said it found a healthy demand for storage in North America, Asia and the Middle East but is being let down by Europe. As the market remains in prolonged backwardation, traders and storage operators alike are looking for new opportunities to combat this lull. Oil giants Vitol and Mercuria, for example, have expanded in agricultural commodity markets by recruiting traders in the past 18 months, while Gunvor and Mercuria have also hired metals specialists and begun trading in this sector for the first time. Within this issue of Tank Storage Magazine we focus on one area where storage operators may be able to claw back some profitability in these challenging times. With the ship industry also suffering and emissions controls tightening, LNG is being viewed as a cost-effective, commercially viable alternative transport fuel. By 2015 there could be 70 LNG-fuelled ships – not a massive market, but a growing one. And a new fuel requires additional infrastructure. Added to this, LNG production is on the rise with

TANK STORAGE • September/October 2013

the shale oil and gas boom and the US Department of Energy has now made clear its intention to approve several licenses for the export of the fuel. Vopak itself is already considering building more LNG storage terminals, including its first in Asia, to meet rising demand as spot trading grows. At the moment most LNG is traded on long-term agreements controlled by major oil companies but, once a new supply comes on stream and trading increases, this opens up new opportunities for independent storage. Within this issue we have also included a selection of articles on other ways storage operators can stay ahead of the competition, including improving and streamlining operations, reducing downtime and cutting maintenance costs by implementing riskbased inspection programmes. We’ve also focused on the expansions and demand for storage in Africa, covering which areas require additional infrastructure, particularly for petroleum product storage. We hope you find this information worthwhile and as always welcome any suggestions for future editions,

Best wishes, Margaret

contents

SEPTEMBER/OCTOBER 2013 Volume 9 issue 5 Horseshoe Media Ltd Marshall House 124 Middleton Road, Morden, Surrey SM4 6RW, UK www.tankstoragemag.com

MANAGING DIRECTOR Peter Patterson Tel: +44(0)20 8648 7082 peter@horseshoemedia.com Publisher & editor Margaret Dunn Tel: +44 (0)20 8687 4126 margaret@tankstoragemag.com Deputy editor James Barrett Tel: +44 (0)20 8687 4146 james@tankstoragemag.com

contents news 1 Comment 2 Contents 4 Terminal news 27 Technical news 34 Incident report 35 Tank terminal update: Africa

Assistant Editor Keeley Downey Tel: +44 (0)20 8687 4183 keeley@horseshoemedia.com Advertising Sales manager David Kelly Tel: +44 (0)203 551 5754 david@tankstoragemag.com PRODUCTION Alison Balmer Tel: +44 (0)1673 876143 alisonbalmer@btconnect.com SUBSCRIPTION RATES A one-year, 6-issue subscription costs £150 (approximately $240/€185 depending on daily exchange rates). Individual back issues can be purchased at a cost of £30 each Contact: Lisa Lee Tel: +44 (0)20 8687 4160 Fax: +44 (0)20 8687 4130 marketing@horseshoemedia.com

Join the Tank Storage group on Linkedi to have your say on important issues Follow us on Twitter: @tankstorageinfo No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Tank Storage are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher.

features 42 Profile: wider repurcussions 44 Regulatory update Jane Besch, CPP manager for operational excellence at Vopak Americas, takes a look at the regulatory agenda affecting terminal operators 46 Reducing risk while minimising costs Pinnacle Asset Integrity Services explains the unique routine it uses to address the implementation and management of risk based inspection programmes for tanks 49 New fuel = new opportunity 55 Changing everything As the US Department of Energy makes clear its intention to approve several licenses for the export of LNG, billions of dollars in terminal and pipeline capacity development is at play looking to change the globe’s energy pricing, storage and distribution landscape

Developing a safety culture A terminal manager, who worked at Tosco for many years, discusses how he changed attitudes to safety at four terminals in northern California

ISSN 1750-841X

September/October 2013 • TANK STORAGE

contents

96 Multiple ground improvement technologies for tank sites with variable soils 98 New measurement protocol becomes the norm for the Netherlands

Dedicated to the UK The UK’s leading event for the bulk liquid 90

Africa: a continent of opportunity and challenge

See inside for chemical features storage supplement 63 Update on Buncefield recommendations 67 Improving terminal operations while simplifying regulatory compliance reporting 84 Hydrocarbon concerns: six key areas 93 New marine terminal for hydrocarbon storage and distribution in the Port of Algeciras (Cádiz)

The voice of the storage terminal industry

SEPTEMBER/OCTOBER 2013

features 101 Forge-ing joins at low temperatures

What is an encapsulator agent?

TANK STORAGE • September/October 2013

Volume No. 9 Issue No. 5

New fuel = new opportunity Demand is growing for LNG as a marine transport fuel, so what does this mean for storage operators?

Regulatory update Jane Besch, CPP manager for operational excellence at Vopak Americas, takes a look at the regulatory agenda affecting terminal operators

Developing a safety culture A terminal manager, who worked at Tosco for many years, discusses how he changed attitudes to safety at four terminals in northern California

105 Planning to avoid failure 109 Integrating security into automation 112 Events Ad index

REGIONAL FOCUS: TANK STORAGE IN AFRICA FC_TSM_Sept- Oct_2013.indd 1

Front cover courtesy of L&G Engineering

03/09/2013 15:11

terminal news

Torq plans crude-by-rail terminal Torq Transloading, a privately held midstream oilfield service provider, is planning to develop a large-scale crude oil train terminal in Saskatchewan, Canada. Torq says it is ‘negotiating multiple pipeline connections to accommodate the delivery of both light and heavy crudes to the Kerrobert Rail Terminal, which is served by Canadian Pacific Railway’. The terminal is estimated to cost $100 million (€75 million) and will be able to handle two 120 car unit trains daily (up to 168,000 bpd). It will also be able to receive product delivered via truck, which will be delivered to storage tanks at the facility. A total 500,000 barrels of storage capacity will be built

The $100m rail terminal will be equipped with 500 bbl storage capacity at the terminal comprising a selection of both heated (for undiluted heavy crude) and non-heated tanks. The terminal is scheduled to begin operations by the third quarter of 2014. Speaking about the development, Torq’s CEO Jarrett Zielinksi says: ‘In the location selection process for

the Kerrobert Rail Terminal, we took the scale-at-hub approach. We feel that Kerrobert is strategic in that it allows maximum diversity and flexibility for crude-by-rail out of western Canada. It is as far south and east geographically in Canada that allows us to access vast amounts of pipeline delivered crude and also to

access significant quantities of heavy, undiluted crudes in the Lloydminster-Kerrobert corridor. ‘Our estimation is that the terminal could offer transportation savings to the US Gulf Coast and East Coast upwards of $5 per barrel compared with shipping similar crudes by rail out of certain locations in Alberta.’

Magellan Midstream to invest $1.4b by 2014 US-based Magellan Midstream Partners, which was focused purely on refined petroleum just four years ago, says it will have invested close to $1.4 billion (€1 billion) on new crude oil pipeline and terminal assets by 2014.

Magellan has acquired a 15 mile crude oil pipeline in the Houston area that will help increase its capacity in southern Texas. The pipeline, known as the West Columbia line, was acquired from Shell Pipeline.

Magellan owns numerous pipelines

It will move crude oil and refined products from a junction south of Houston to Magellan’s distribution terminal in East Houston. Crude coming from the Eagle Ford Shale, and other refined products, will be

connected to the terminal for storage and delivery into Shell’s other systems. The pipeline, with a capacity of 150,000 barrels per day, is bi-directional. The pipeline expands its distribution capacity in the Houston region and will allow for opportunities to connect to other third-party terminals in the future. The company’s crude oil focus has expanded dramatically in the past year. The former Longhorn Pipeline began shipping in April, while Magellan also has announced plans for the 450 mile BridgeTex pipeline in west Texas, a joint venture with Occidental Petroleum, and the Double Eagle Pipeline moving condensate in south Texas. Magellan also has nearly 10,000 miles in refined petroleum pipelines and 49 terminals throughout the mid-continent region from Texas to Chicago.

September/October 2013 • TANK STORAGE

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TANK STORAGE â&#x20AC;˘ September/October 2013

terminal news

Indian Government to build strategic crude storage

news in brief...

The Indian Minister of State for Petroleum & Natural Gas has said the Government is to set up an additional 12.5 million tonnes of strategic crude oil storage capacity in the country. The tanks, which are being managed by Indian Strategic Petroleum Reserves Ltd (ISPRL), will be built in Bikaner, Rajkot, Chandikhol and Padur. ISPRL has conducted a detailed feasibility study for the construction of additional 12.5 million tonne of crude oil storages in phase-II at the four locations. In the first phase, ISPRL is setting up storage facilities of

World Point Terminals, a storage terminal owner and operator, has released terms for its IPO. The company is a St. Louis, Missouribased limited partnership established earlier this year to handle crude oil and light and heavy refined products. It says it plans to raise $175 million (€132 million) through the offering of 8.8 million shares priced between $19 and $21. At the midpoint of this proposed range, World Point Terminals would command a fully diluted market value of $659 million.

5.33 million tonnes of crude oil at Visakhapatnam (1.33 MT), Mangalore (1.5 MT) and Padur (storage capacity: 2.5 MT) to enhance India’s energy security. Laksmhi said the Integrated Energy Policy (IEP-2008) has recommended that India should have crude oil reserves for 90 days as buffer stock for emergency supplies. India imports more than 80% crude oil it processes and any disruption in imports would have adverse impact on its economy. The buffer stocks should be used to address short-term price volatility. India currently stores oil for 72 days.

Blackwater to expand in Westwego and Louisiana US-based storage operator Blackwater Midstream has received approval for two new tanks at its Westwego site on the Mississippi river. The company will add two 50,000 barrel tanks by the end of this year, taking the total tankage to over 1 million barrels. In addition, Blackwater also purchased a new 56 acre site from Chemtura in Louisiana this July. Formerly a manufacturing facility, the site already contains 15 tanks ranging from 1,500 barrels

and 50,000 barrels, with a total capacity reaching 250,000 barrels. As the site has been inactive since 2003 Blackwater is now in the process of carrying out renovations. One ship dock already exists and the company is applying for a permit to build another. Blackwater is also in talks with customers who may require additional heavy wall tanks. The site is expected to be operational by Q4 2013 or early 2014.

Keyera and Kinder Morgan in JV for crude oil loading terminal Keyera, a natural gas midstream company, and Kinder Morgan Energy Partners have formed a 50/50 joint venture to build a crude oil rail loading facility in Alberta, Canada. The Alberta Crude Terminal will be constructed next to Keyera’s Alberta Diluent Terminal on a site owned by a Keyera subsidiary. The loading facility will be able to accept crude oil streams handled at Kinder Morgan’s Edmonton Terminal for loading and delivery via rail to refineries anywhere in North America. Keyera will operate the terminal,

which will have 20 loading spots able to load around 40,000 bpd of crude oil into tank cars. Canadian National Railway and Canadian Pacific Railway will serve the facility. Keyera’s president and COO says: ‘Kinder Morgan’s access to multiple crude streams, together with our location and facility capabilities, combines crude oil supply with the necessary infrastructure, land and rail connectivity to help address some of the crude oil delivery constraints currently being experienced by the Alberta energy sector.

World Point Terminals sets terms IPO

Biodiesel unavailable at Buckeye terminal Buckeye Terminal’s biodiesel facility in Illinois, US temporarily ceased supplying fuel in July. The delivery system was shut down to replace a meter and did not resume operations until the part had been tested and proved. Biodiesel supplier Gulf Hydrocarbon Partners no longer brought biodiesel into the facility and also stopped delivering fuel out of the site until the meter was put back in service.

Over 50 terminals planned for Brazil Fifty-two port terminals are to be built in Brazil following authorisation by the nation’s president Dilma Rousseff. The new facilities, the majority of which will be located in the north of the country, will cost a total 11 billion reais (€3.7 billion) to build. Terminal operators are expected to bring their new facilities online within three years of breaking ground. A total of 129 terminals are under assessment, 11 of which could handle bulk liquid cargos.

HPCL and Shapoorji Pallonji to partner for LNG terminal State-owned oil company Hindustan Petroleum (HPCL) and Mumbaibased infrastructure major Shapoorji Pallonji are to sign a 50/50 joint venture agreement for a new Rs.5,000 crore liquefied natural gas (LNG) terminal. The terminal and 5 million tonne per year regasification facility will be developed by HPCL and SP Ports, a unit of Shapoorji, and be located in the Junagadh district of Gujarat. The agreement is due to be finalised soon, with the terminal expected to come online three and a half years after construction begins.

September/October 2013 • TANK STORAGE

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terminal news

Delek Logistics Partners acquires storage tanks and terminal Delek Logistics Partners has acquired several storage tanks and the product terminal at subsidiary Delek US’ refinery in Texas for $94.8 million (€72 million) in cash. The transaction includes all of the storage tanks and the sole refined products terminal at the refinery. The tank farm has approximately 2 million barrels of aggregate shell capacity and comprises 96 tanks and related assets, including piping. The product terminal operated at an approximate total throughput of 55,000 barrels per day (bpd) in 2012 and has an estimated capacity of 72,000 bpd.

Delek Logistics financed the purchase price of $94.8 million for these assets through a combination of cash onhand and new borrowings on its revolving credit facility. In connection with the closing of the transaction, Delek US and Delek Logistics entered into a throughput and tankage agreement for the terminal assets, storage tanks and related assets. This includes minimum throughput commitments, an annual storage fee, annual inflation-based price escalations and an eight year initial contract term.

Delek Logistics has purchased 96 storage tanks and a products terminal

Phase one of Pengerang Petroleum Terminal to be completed next year Phase one construction of the RM9 billion (€2 billion) Pengerang Independent Deep Water Petroleum Terminal is progressing and scheduled for commissioning in the second quarter of next year. Johor Petroleum

Development CEO Mohd Yazid Jaafar said construction work was 65% completed and commissioning in slated for Q2 2014. The terminal, to be built in phases on 200 hectares of reclaimed land, will have

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a total of 5 million m3 of petroleum storage capacity. The project is undertaken by main board-listed Dialog, Vopak of the Netherlands and state-owned State Secretariat. The first phase of the petroleum storage facility has the capacity to store up to 1.3 million m3 of petroleum products. Jaafar said the project also includes a liquefied natural gas import terminal which the company planned to develop under phase two of its master plan. To date, two separate catalytic projects have been committed within the complex, namely the terminal and the Refinery and Petrochemical Integrated Development (RAPID)

project by the national oil corporation Petronas. Apart from the two committed projects, Taiwan’s Kuokuang Petrochemical Technology (KPTC) has also indicated its interest to invest in a refinery and petrochemical development project within the complex. The proposed project by the Taiwan company is separate from the two projects being undertaken by the Dialog-Vopak-Johor State government joint venture and Petronas’ RAPID. Should it decide to proceed, KPTC’s investment is expected to be within the region of about $13 billion (€9.8 billion) in which it plans to build a 150,000 barrels per day crude naphtha cracker.

New liquid terminal set for India It is been revealed the largest container port will construct a new liquid terminal through a publicprivate partnership route. Jawaharlal Nehru Port Trust (JNPT), via a Rs 1,800 crore (€20.5 million) investment, claims the terminal will have a capacity

07/01/2013 14:54

of 15 million tonnes a year. It will include a tank farm spread over 70 hectares and a liquid jetty, with the land already acquired, and deputy chairman N N Kumar quoted as saying the request for qualification document will be floated ‘early next September at the latest’.

September/October 2013 • TANK STORAGE

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TANK STORAGE • September/October 2013

terminal news

Around 240,000 bpd of crude oil will be offloaded under the revised project

Oil storage and transfer facility proposed for Pittsburg waterfront A huge parcel of industrial land is to be transformed into a facility to unload crude oil from ships and rail cars then send it through pipelines to local refineries under a $200 million (€150 million) development proposal.

After the project’s draft environmental impact report was released last year, WesPac Energy-Pittsburg opted to add rail delivery of domestic crude oil to the proposal, which originally called for only imported

crude oil to be delivered by ships to a marine terminal. The revised project will be able to offload an average 242,000 barrels a day of crude oil or partially refined crude oil from both ships and rail cars. The project will strengthen

the Bay Area’s oil storage and transfer capacity, according to Art Diefenbach, VP of engineering at Irvinebased WesPac. Adding rail delivery was in response to a request made by oil refineries, which are looking to use more domestic crude oil from Midwest oil fields. Similar projects that use rail cars to deliver crude are being developed elsewhere in California, including Benicia, where city officials are considering a use permit for the Valero refinery to offload 70,000 barrels a day of North American crude oil by rail. The addition of the rail component to the Pittsburg proposal required that a recirculated draft environmental impact report be done. A final environmental impact report is tentatively expected to be released in November. WesPac has an option to buy the 125 acre parcel where the storage tanks are located from NRG, an energy company that operates a power plant on the site, if the required approvals are obtained. The project, which would take about two years to complete, calls for existing facilities and equipment to be replaced, upgraded and repaired to bring the facility into compliance with industry standards and regulatory requirements. Once used by Pacific Gas and Electric to store fuel oil that was burned to generate electricity, the 16 empty tanks would be replaced, repaired or retrofitted to store crude oil.

September/October 2013 • TANK STORAGE

terminal news

Oiltanking sells 45% shares in Helios Terminal Oiltanking is a subsidiary of Marquard and Bahls AG, Germany, a privatelyowned petroleum company. Oiltanking is the second largest independent tank storage provider for petroleum products, chemicals and gases worldwide. The company owns and operates 73 terminals in 23 countries within Europe, the Americas, the Middle

East, Africa, India as well as Asia. Oiltanking has an overall storage capacity of 20.4 million m3. Macquarie Capital offers expertise across a range of advisory and capital raising services including corporate finance and advisory, equity and debt capital markets, private equity placements and principal investments.

Storage ‘milestone’ for China Aviation Oil Singapore-based China Aviation Oil (CAO) has signed a product storage agreement to lease storage facilities within the country. The three-year agreement has been signed with Horizon Singapore Terminals and takes effect in September. It is believed five storage tanks, with a total capacity of 174,000m3, will be used for fuel oil and fuel oil blend liquids.

CAO CEO Meng Fanqiu states the move ‘marks a milestone for us as this is a first for our fuel oil trading business’ and shows the company’s commitment for expansion. CAO is the sole supplier of imported jet fuel to the civil aviation industry of China, while also supplying to airports in locations like Europe and the Middle East.

Petronet to offer stake in LNG terminal Indian liquid gas importer Petronet LNG is expected to offer a 1518% stake in its new LNG import facility to a gas supplier. The 5 million tonne per year LNG terminal is under construction in Gangavaram, Andhra Pradesh. It is being built through a special purpose vehicle, a stake in which will be offered to an LNG producer or supplier. Petronet will hold 74% in the terminal and Gangavaram port 8%. The remaining stake will be on offer. Petronet received final approval to break ground on the LNG terminal earlier this year. This will be its third such facility and first to be located on the east coast. It will come online in 2016 but there is scope to double the facility’s capacity to 10 million tonnes.

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terminal news

Odfjell to purchase Chem-Marine Corp. Odfjell Terminals has entered into a Letter of Intent to purchase Chem-Marine, which controls a 25.3 acre/10.2 hectare site through a long-term land lease, and is located adjacent to Odfjell’s tank terminal in North Charleston, South Carolina, US. The property is situated on the Cooper River and has a 250m deepwater front and a 12.5m draft ship berth, with one dedicated stainless steel line connected to 12,800m3 of storage in two carbon steel tanks. The facility currently handles the discharge of Alcoa’s alumina carrying vessels for once or twice per month which is conveyed to onsite dry storage facilities. Daily rail loadings of alumina are shipped to Alcoa’s primary

aluminium production facility in Mt. Holly, South Carolina. This acquisition offers an opportunity for expanding Odfjell’s physical presence in the south east region of the US. Further to this, Chem-Marine has been a valuable part of the Charleston community for over 35 years, adding strength to Odfjell’s continuing commitment in this region. This acquisition has an estimated value below $10 million (€7.5 million). The transaction will be consummated through Odfjell Holdings (US), a subsidiary of Odfjell Terminals AS, which is the joint venture company owned 51% by Odfjell SE and 49% by Lindsay Goldberg.

Mobil Oil ramps up fuel oil capacity Mobil Oil New Zealand has put into a service a tank for the storage of fuel oil. The existing tank is located at Mobil’s Mount Maunganui Terminal. It was upgraded and can now handle 8 million litres of fuel oil. ‘To better service the rapidly growing demand from cargo vessels and cruise ships at the Port of Tauranga, we converted an existing 8 million litre tank at the Mt. Maunganui Terminal into

a fuel oil tank, that meets the requirements for storing an handling heavy fuel oil,’ the company’s lead country manager Andrew McNaught was quoted as saying. The total cost of the project was not disclosed, but McNaught said it ‘represents a significant investment in Mobil’s New Zealand operations’. The terminal handles petrol and diesel fuel for customers on the North Island and as marine fuel for bunkering at the Port of Tauranga.

CLH inaugurates new storage terminal in Spain Spanish oil storage and transportation company CLH has opened its new storage terminal in Salamanca, Spain. The €21.2 million project is built on 150,000m2 of land and comprises nine storage tanks with a capacity of 76,210m3. It will operate 24/7. It is connected to the ValladolidSalamanca pipeline and is fitted with an automated tank truck loading area with four loading racks. CLH says around 24,000 tank trucks a year will load fuel at the facility for distribution to fillings stations and other consumers in Salamanca. The terminal has been designed to reduce its environmental impact.

It features protection systems such as a rainwater collection network that is separate from the hydrocarboncontaminated water network, a hydrocarbon-polluted water treatment system and a vapour recovery unit. It has also been fitted with various safety and security technology. This includes safety distances between the tanks and watertight tank separation enclosures, in additional to internal floating roofs and overflow safeguard systems. This new terminal replaces the company’s existing facility that has been operating at the site since 1935.

news in brief... Chevron plans new storage for base oils Chevron is expanding its storage capacity for Group II base oils. The company says it will build an additional facility in Eastham, England which will be the company’s third European supply hub for such materials. Its other facilities are located in Belgium and Germany. The new facility will handle a complete product line, including Group II grades, 100R, 220R, 600R and Group II+, 110RLV. Chevron’s new plant, which is under construction in Mississippi, US, will supply the storage hub with base oil. When the plant comes online it will be one of the largest in the world, producing 25 kBD of Group II base oil. This additional volume will make Chevron the largest producer of premium base oil.

Blackwater Midstream gets approval for terminal expansion Liquid terminal company Blackwater Midstream is expanding its chemical storage terminal in Louisiana, US. The company is reportedly building two new tanks with a total capacity of 4 million gallons for unspecified, non-flammable chemicals. The terminal currently features 46 tanks. Westwego City Council approved the plans in July. Blackwater eventually wants to add at least six new tanks to six acres of free land at the 26 acre site. A proposal for six facilities was initially submitted to the council in June but only two were approved.

Vopak and Magellan consider terminal in Texas Independent bulk liquid storage operator Vopak has teamed up with Magellan Midstream Partners to jointly evaluate building a storage terminal in the Houston Gulf Coast area. Under a recently signed joint development agreement, the two parties will carry out a feasibility study for the new facility, which will store and handle crude oil, refined products and ethanol. Vopak owns the site in Deer Park, Texas on which the proposed deepwater tank storage terminal would be built. The tank terminal infrastructure would include tanks of various sizes, barge and ship docks. The location already features rail access, automatic truck loading facilities and connectivity to Magellan’s refined products and crude oil pipeline systems.

September/October 2013 • TANK STORAGE

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Enbridge extending Woodland pipeline Work is progressing on the expansion of Enbridge’s Woodland Pipeline which is due to enter service in the third quarter of 2015. The $1.3 billion (€980 million) project includes extending the pipeline south from Enbridge’s Cheecham Terminal to its Edmonton Terminal to connect with

refineries and export pipelines in the Edmonton area. Fifty per cent of the investment is Enbridge’s capital contribution. Once completed, the pipeline will serve the Imperial Oil and ExxonMobil Kearl oil sands project. In 2012 Enbridge brought online a part of the pipeline running between

the Kearl oil sands project and its Cheecham terminal. ‘Extension of the pipeline will bring additional crude oil transportation capacity into the Edmonton area, enabling us to accommodate forecasted regional oil sands production growth from the Kearl project and other oil sands projects targeted for

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Wastewater Treatment Centers

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delivery into the Edmonton hub,’ Stephen Wuori, Enbridge president of liquids pipelines and major projects, says. The 385km expansion will initially be able to handle 400,000 bpd, which could grow to 800,000 bpd depending on crude viscosity. With the Woodland pipeline extension project, Enbridge is building new infrastructure costing over $4.3 billion that will serve Alberta oil sands producers’ growing demands. These projects are forecasted to come online between 2013 and 2015.

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New research by the Dutch social affairs ministry claims more than 75% of the tank storage firms operating in the Netherlands are not complying with the rules. Feedback from inspectors about 93 different companies which store inflammable and dangerous chemicals in overground tanks found problems at 73 of them. The report says the majority of the 323 infringements were not considered ‘serious’ but problems at four locations was so dangerous that immediate action was taken. A local news report claims the increased interest leading to such a report came after the weak safety standards found at a site owned by Odjfell last year, which included a lack of firefighting equipment and personnel being over exposed to benzene.

September/October 2013 • TANK STORAGE

terminal news

REG to supply biodiesel at new terminal location

BOSTCO to start operations in Q4 2013 The Battleground Oil Speciality Terminal (BOSTCO) on the Houston Ship Channel will enter service in October this year, according to reports. Operations will begin with 2.84 million barrels of storage for residual fuel oil and feedstock before 3.36 million barrels are added at the beginning of 2014. A further 900,000 barrels of capacity for the storage of diesel will be built towards the end of next year. This start-up capacity is less than the original 7.1 million barrels initially expected to come online in the third quarter of 2013. Storage for the residual oil and feedstock will be rented by eight companies including Valero, Unipec USA, Glencore and Tauber. Morgan Stanley will utilise all the distillates storage capacity available at the terminal. BOSTCO is owned by Kinder Morgan (55%) and TransMontaigne Partners (42.2%). The remaining 2.8% is owned by project founder John McDonald.

Biodiesel producer and marketer Dave Elsenbast, REG’s VP of supply Renewable Energy Group (REG) chain management, adds: ‘REG will is to supply biodiesel at IMTT’s grow our current biodiesel marketing storage terminal located at the capabilities by utilising IMTT’s New York Harbor in New Jersey. terminal with deep water access to As one of the world’s largest multiple barge and ship berths.’ trading hubs, the new location will allow REG to sell large volumes of biodiesel via barge or truck. ‘The Northeast has an active biodiesel market and this terminal position allows us to provide more REG-9000 biodiesel to better serve this growing market,’ explains Gary Haer, REG VP of sales and IMTT’s terminal in Bayonne, New Jersey marketing.

Mercuria raises $1.8b revolving credit facility Mercuria Energy Trading has completed the successful signing of its new $1.35 billion (€1 billion) 364-day and $450 million threeyear revolving credit facilities. ABN AMRO Bank, BNP Paribas, Crédit Agricole Corporate and Investment Bank, ING Bank, Natixis, Rabobank International, The Royal Bank of Scotland and Société Générale Corporate and Investment Banking (the corporate and investment banking division of Société Générale) acted as mandated lead arrangers and bookrunners for the facilities. These new facilities will be used for general corporate purposes and to refinance the company’s maturing $250 million three-year revolving credit facility dated 3 June 2011, $1.7 billion 364-day revolving credit facility and €145

million three-year revolving credit facility dated 24 May 2012. The new facilities were oversubscribed, 70% above the initial launch amount and subsequently increased to $1.35 billion and $450 million, respectively. The company was able to benefit from strong market demand and improved conditions in the syndicated loan market. Guillaume Vermersch, group CFO, says: ‘In total 48 banks committed to the facility including a number of new banks for Mercuria Energy located in North America, Middle East, Africa and Asia where our banking relationships are developing at a rapid pace. This demonstrates the robust appeal of the facility as well as the repeated confidence in the company’s business model.’

TANK STORAGE • September/October 2013

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terminal news

Odfjell Terminal signs reservation protocol Odfjell Terminals Europe and Grand Port Maritime du Havre (GPMH) have signed a Site Reservation Protocol for a plot of land at the Port of Le Havre, France to build a bulk liquid storage terminal. The terminal, which will be located inside the Port of Le Havre, will be built on a 31.5 hectare site. The first phase, with a €150-200 million investment, will feature 150,000m3 storage capacity for petrochemicals and other petroleumrelated products. Construction is due to begin in 2015, with the terminal expected

to enter service in the second half of 2017. At the signing Hervé Martel, chairman of GPMH management board, said: ‘Signing with Odfjell Terminals Europe is a significant stage for the GPMH because it closes the phase of call for projects launched in 2011 in order to boost bulk liquid storage activity in its port and industrial zone.’ The deepwater Port of Le Havre is one of Europe’s largest ports with the ability to receive all types of seagoing vessels. In 2012 it handled 64

Iran to launch biggest floating oil export terminal in Middle East Iran is building the Middle East’s biggest floating oil export terminal, according to the MD of National Iranian Offshore Oil, Mahmoud Zirakchianzadeh. ‘The facility will come on stream by the Iranian month of Mehr (23 September to 22 October) and has the capacity to store 2.2 million barrels of oil,’ he says. The country’s oil storage capacity will reach 8.1 million barrels by the end on the current calendar year (20 March 2014). Iranian Oil Terminals (IOT) MD Seyyed Pirouz Mousavi said in May that Iran will launch a floating oil export terminal in order to boost country’s capability to export crude oil and reduce storage costs in the Persian Gulf. Considering that a large number of joint oil and gas fields are located in the Persian Gulf, such a terminal will help the country expedite oil storage and export operations. The first floating oil terminal, named

Sourena, is currently exporting crude oil produced in the Norouz and Soroush fields of the Persian Gulf. Previously, Mousavi said that, in less than two years, Iran will increase its export of gas condensate from the current level of 450,000 barrels per day (bpd) to 1.2 million bpd. The IOT chief said Iran currently exports condensate from the southern port of Asalouyeh, adding that the country plans to further boost condensate exports by building new facilities in Bushehr Province, south Iran. Iran’s oil minister Rostam Qasemi says the country has significantly developed its capacity to ship oil overseas despite US-backed sanctions. At the beginning of 2012, the US and the EU imposed new sanctions on Iran’s oil and financial sectors. The sanctions, which prevent the EU member states from purchasing Iranian oil or extending insurance coverage for tankers carrying Iranian crude, came into effect in July 2012.

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TANK STORAGE • September/October 2013

million tonnes of traffic, 36.7 million tonnes of which was for liquid bulk. ‘When the terminal is built, we can offer our customers storage capacities in the most important shipping hubs for petrochemical and other speciality bulk liquids in Europe with presence in Rotterdam, Antwerp and Le Havre,’ says Jan Hammer, president and CEO of Odfjell SE. ‘In the coming months basic engineering will be started before permit applications are submitted and Odfjell and GPMH make a final decision to proceed.’

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terminal news

Simon Storage announces new UK waste handling facility UK-based Simon Storage has agreed the necessary terms of a Part A PPC permit with the Environment Agency for the handling of hazardous and non-hazardous bulk liquid wastes at its Immingham terminal complex on the south bank of the River Humber. This is the first time in 80 years that companies will be able to use Immingham for storing both types of bulk liquid waste for offsite disposal or recovery. Simon Storage has a long history of handling bulk liquid wastes under permit at its East Coast terminals located at Seal Sands, Teesside as well as at Velva Liquids, Tyneside. In 2012 it was successful in applying for the necessary Radioactive Substance Regulations (RSR) permits to handle naturally occurring radioactive material (NORM) products typically originating from the North Sea.

The permission regime for storing hazardous bulk liquid wastes is stringent and, as an EPR Part A process, wastes must be stored in tanks with impermeable bunding and managed under strict stock management systems and reporting regimes. Outfall consents are also subject to regular monitoring and reporting to ensure compliance within consented limits. Another prerequisite is competent staff training, both to meet permitting requirements and also to uphold Simon’s commitment to personnel and process safety. Simon now has WAMITAB (formerly the Waste Management Industry Training and Advisory Board) qualified staff located at each of its East Coast terminals and, where NORM products are located, staff also hold an approved Radiation Protection Supervisor’s (RPS) qualification. In addition to permission

Simon says it is now handling hazardous and non-hazardous bulk liquid wastes at Immingham for the receipt, storage and redelivery of hazardous and non-hazardous bulk liquid wastes, Simon Storage has also been permitted to carry out water separation activities and the recovery of the separated hazardous and

non-hazardous waste. In 2010 Simon Storage invested in new water treatment facilities and will now be permitted to use this plant for the disposal of the separated wastewater. The above activities cover a range of permitted EWC codes.

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Plans falter for Bangladesh deep-sea oil terminal The setting up a floating deep-sea oil-handling terminal has hit snags as the Islamic Development Bank (IDB) is yet to find co-financiers for the project, according to officials. The Jeddah-based IDB, which committed to finance a portion of the $327 million (€247 million) project cost, is yet to find any other donor offering the remaining part of the required fund. At the request of the government of Bangladesh, the IDB sat with donors in different Middle Eastern and Gulf countries. ‘They were yet to give any positive feedback on the financing request,’ said an official of the Energy Division, who added the cost of the Single Point Mooring (SPM) project rose to $327 million from the earlier estimated $129 million, as a German firm conducted a thorough study about the project cost, estimated earlier in a detailed feasibility report. ‘The IDB has agreed to raise its funding support to $220 million from the earlier committed $120 million, as the project cost went up. We need to confirm the source of the remaining amount of fund,’ Kazi Shofiqul Azam, additional secretary of the Economic Relations Division (ERD), says. He adds the IDB is still trying to convince the donors in the Middle East and Gulf countries to fund the floating oil unloading facility. Earlier in May 2010 stateowned Bangladesh Petroleum (BP) undertook the SPM project to check pilferage of imported petroleum and ensure efficient handling of the oil consignments. That time the

IDB committed to provide a $120 million loan for setting up the floating terminal and constructing a pipeline. Later, the project cost was revised upward to $327 million in view of enhancement of the pipeline’s length by 30km from the initiallyproposed 77km to carry crude oil from the offshore Kutubdia Island via Maheskhali to the Eastern Refinery at Patenga. It would help tackle oil pilferage and reduce the time for supplying oil across the country. Earlier, BP undertook the project based on a feasibility study done by a Pakistani consulting firm. Then the cost of the project was estimated at $129 million. But when experts raised some questions about the feasibility study of the Pakistani firm, the government engaged the German firm to review it. The German firm proposed a different route for the SPM pipeline and revised the cost upward to $327 million. On the other hand, another ERD official said the IDB would provide $220 million in loans while the remaining portion of the fund would be provided by the government. ‘On establishment of the terminal, BP would no more depend on other countries for handling consignments of imported petroleum oil,’ the Energy Division official said. He also said BP would also be able to save an amount of money by ‘reducing pilferage during transportation of oil and reach the break-even point within 15 years’. The terminal would be able to handle 120,000 tonnes of oil per month, officials say.

Halcon subsidiary plans $70m terminal Halcon Field Services, a subsidiary of energy company Halcon Resources, is developing a $70 million (€53 million) midstream oil storage and rail loading terminal in the US state of Ohio. The terminal will be completed in stages, the first of which is expected to come online in 2014. Once complete the facility will comprise six storage tanks, in addition to four bay truck racks, a 20 rail car loading platform and three stabilisers. Halcon says the terminal will enable it to transport oil through the Utica Shale play to markets outside the production area.

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terminal news

Canadian oil storage hubs to expand 25% by 2015 The Canadian crude oil hubs of Hardisty and Edmonton in Alberta are embarking on a major round of storage expansion that should boost capacity by about 25% and provide more scope for trading oil sands crude production. According to company data and estimates from energy intelligence firm Genscape, the projects should add around 9 million barrels of capacity over the next two years. In addition, TransCanada will add an as-yet undisclosed volume of storage capacity in Hardisty once it greenlights a major eastern pipeline project. Alberta’s oil sands crude production is expected to nearly double to 3.22 million barrels per day (bpd) by 2020, from 1.8 million bpd in 2012. The lion’s share of the new storage capacity – 6.6 million barrels

– will be built in Edmonton, where there are salt caverns as well as aboveground storage tanks. Current capacity is estimated to be around 11 million barrels. Traditionally the smaller of the two hubs, Edmonton is attracting investment thanks to its proximity to refineries such as Imperial Oil’s 187,000 bpd Strathcona facility, and pipelines running west to the coast of British Columbia, as well as south to the US. Edmonton is the starting point for Kinder Morgan Energy Partners’ 300,000 bpd Trans Mountain pipeline, which the company is proposing to expand to 890,000 bpd. Hardisty, a tiny town in east-central Alberta is Canada’s equivalent to Cushing, the main US crude storage hub in Oklahoma. Although there are no official figures

available, industry players estimate there is storage capacity for 20 to 25 million barrels of oil in the tank farms there. It is a junction point on the Enbridge mainline and crude volumes can also flow south on TransCanada’s 590,000 bpd Keystone pipeline and Spectra Energy’s 280,000 bpd Express-Platte pipeline system. ‘TransCanada is planning to add to its 4.5 million barrels of crude oil storage in Hardisty if open season on the Energy East pipeline project goes well,’ company spokesman Davis Sheremata says, although he declined to comment on how much. The Energy East project is a plan to build a pipeline to ship up to 850,000 bpd of Western Canadian crude to eastern refineries, with a targeted end-2017 opening.

2% growth for port of Antwerp in first half year The Port of Antwerp handled 95.7 tonnes of freight during the first six months of this year, an increase of 2% in comparison with the same period in 2012. Liquid bulk in particular showed strong growth, especially petroleum derivatives. The volume of dry and liquid bulk together rose by 12.1% to 36.5 tonnes. Liquid bulk itself was up by 33.1% to 29.2 tonnes, with volumes of crude oil and oil derivatives contributing in particular. The rise in liquid bulk is largely due to the new Sea Tank Terminal 510 and Independent Belgian Refinery, which started up again after Gunvor acquired them and made heavy investments. But most of the other oil product terminals also noted sharp increases. ‘In combination with the investments recently announced, these half-year figures lead us to be cautiously optimistic for the first semester,’ says port authority CEO Eddy Bruyninckx.

The LNG terminal will be built at Klaipedos Port by Q4 2014

EIB supports the construction of LNG terminal in Lithuania The European Investment Bank (EIB) is lending €87 million ($111 million) to Klaipedos Nafta for the construction and operation of a new liquefied natural gas (LNG) import facility located in the port of Klaipeda. The LNG terminal comprises a floating storage and regasification vessel, an offshore jetty including gas handling facilities and an 18km pipeline connection to the Lithuanian gas grid, which are being financed by the EIB loan. ‘The LNG Terminal in Klaipeda is a critical component of Lithuania’s

energy strategy as it is the alternative solution for gas diversification in the short term,’ says Lithuanian minister of energy Jaroslav Neverovic. ‘It will bring transparent competition to the gas market, with national and possibly regional consumers set to benefit.’ At the signing ceremony the EIB VP Pim van Ballekom said: ‘We would like to see this as the first of a series of energy projects that we could finance in Lithuania.’ The project is planned to be finalised by the end of 2014.

September/October 2013 • TANK STORAGE

terminal news

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terminal news

Gibson Energy to expand Edmonton terminal

Vancouver port approves oil train terminal Port of Vancouver commissioners have approved a 10 year, $45 million (€34 million) lease for 41 acres of oil terminal facilities at the port. The proposal now goes to Washington’s Energy Facility Site Evaluation Council, which will make its recommendation to governor Jay Inslee, who will make the final decision. The Colombia river terminal would take crude oil by train from North Dakota and ship it to West Coast refineries. The terminal would be run by Tesoro along with the Savage companies. Tesoro is a current tenant at the port. With Savage, it wants to build six storage tanks capable of handling 360,000 barrels a day for shipment to 19 West Coast and British Columbia refineries. The Vancouver terminal operation would involve as many as four milelong oil trains a day, operated by Burlington Northern Santa Fe. The 10 year lease would bring the port $4.5 million a year. It currently operates on revenue of $34 million a year. IFC_HALF_SEPT_Layout 1 23/08/2013 08:54

The companies would also invest up to $100 million in the terminal. Tesoro, Savage and Berkshire Hathaway’s Burlington Northern Santa Fe Railway have said they will use modern equipment, rail cars and doublehulled vessels. An oil terminal is already operating on the Columbia at a former ethanol plant at Port Westward. Other oil terminals are proposed in Tacoma and Grays Harbor County. Demonstrators opposed to the projects are worried about a repeat of the recent Quebec incident where a runaway train carrying crude oil derailed and exploded. However, if all is approved, the trains could be running in a little over a year, although construction cannot begin until the project receives state and federal permits. According to the Association of American Railroads, a surge in North American oil production and a lack of pipeline capacity boosted the amount of crude moved by rail in America to record levels in 2012. Page 1

Gibson Energy, an independent midstream energy company, is to build additional infrastructure at its terminal in Edmonton, Canada after signing a long-term contract with Statoil Canada. Subject to pipeline connection agreements, Gibson says it will erect a 300,000 barrel crude oil storage tank and construct pipeline and connection infrastructure linking to a number of key pipelines in the Edmonton area. It will also build a new rail loading rack under the contract. This new infrastructure will give Statoil a number of delivery options for its crude production points across North America. It is all expected to be operational in the first half of 2015. ‘This development will be located on the western side of our Edmonton terminal and is the first step in capitalising our 45 acres of underdeveloped land,’ says Stewart Hanlon, Gibson’s president and CEO.

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September/October 2013 • TANK STORAGE

terminal news

Irving Oil and TransCanada sign joint venture for marine terminal Irving Oil, a privately-owned regional energy and marketing company, and energy infrastructure company TransCanada have formed a joint venture to develop and build a new terminal called Canaport Energy East Marine Terminal at Irving Canaport in New Brunswick, Canada. The news follows TransCanada’s announcement that it is proceeding with the development of the Energy East Pipeline that will transport western Canadian crude oil to Montreal, Quebec City and Saint John. Engineering and design work on the new $300 million (€226 million) marine terminal will begin in 2015. It will be built near to Irving Oil’s existing import terminal and Irving will operate it. ‘The Canaport Energy East Marine

Irving Oil and its partner will start work on the Canaport Energy East Marine Terminal in 2015 Terminal will connect TransCanada’s Energy East Pipeline to an ice-free deepwater port. It will allow Canadian producers direct access to world markets for exporting Canadian oil via the world’s

largest crude carrying vessels,’ says Paul Browning, Irving Oil’s president and CEO. Irving Oil imports over 100 million barrels of crude oil each year at its Canaport facility.

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terminal news

EPA updates emissions standards The US Environmental Protection Agency (EPA) has issued updates to standards it brought out in April covering air emissions from oil and gas storage tanks. The updates will phase in control deadlines, starting with higher-emitting tanks first, and will provide the necessary time to ramp up production and installation. It made the changes after receiving information that more storage tanks than it initially estimated will come online, the EPA said. Tanks that emit 6 tonnes a year or more of volatile

organic compounds (VOC) will have to reduce those emissions by 95%. It said the 5 August order established two deadlines: tanks which came online after 12 April and are likely to have higher emissions will have to control VOC releases within 60 days, or by 15 April 2014, whichever is later. Tanks which came online before 12 April and are likelier to have lower emissions must control those releases by 15 April 2015. The updated standards also establish an alternative emissions limit that would

allow owners or operators to remove controls if they can demonstrate that the tanks emit less than 4 tonnes per year of VOC without controls, according to the EPA. The rule also streamlines compliance and monitoring requirements for tanks on which controls have been installed already, it added. The action does not affect requirements which the EPA also issued in April covering capturing of natural gas emitted from hydraulically fractured wells.

China Aviation Oil to lease storage at Horizon Singapore terminal China Aviation Oil is leasing approximately 170,000m3 of tank storage at the Horizon Terminal in Singapore. The space will become available after Brightoil Singapore’s contract expires later this year. Brightoil Singapore will, however, continue with its other contract with

Horizon for another 170,000m3 of storage for the next three to five years. Horizon Terminal, as well as CAO and Brightoil, declined to comment. In April, while announcing its first quarter results, CAO’s CEO Meng Fanqiu said that its ‘portfolio of other oil products, namely petrochemicals, fuel oil and gasoil

businesses achieved robust growth during the quarter and contributed significantly to the gross profit’ and that the company plans to develop these businesses going forward. He had added that CAO would expand its jet fuel supply and trading activities in Asia Pacific, Europe, North America and the Middle East.

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terminal news

Long-term storage projects buoy Vopak as it discloses new figures Independent tank storage provider Vopak has released its latest company figures for the second quarter. The group EBIDTA was 1% up on last year’s figure, coming in at €384 million ($510.8 million), but net profit fell 5% to €162.5 million which the company has put down to ‘recent challenging business climates’. Vopak does believe it’ll end on an EBITDA within the region of €730-780 million for the full year 2013 however. ‘The first half year of 2013 was characterised by an overall healthy demand for our storage services throughout our terminal network in North America, Asia and the Middle East. However, we continued to see a challenging crude oil and gasoil storage market affecting the Rotterdam area, as well as uncertainty in the biofuel market,’ Royal Vopak CEO Eelco Hoekstra says. ‘For the remainder of 2013, we expect similar market circumstances as in

the first half year of 2013.’ Vopak projects under construction are expected to add 4.6 million m3 of storage capacity over the next 18 months, the completion of which is expected to result in a worldwide storage capacity of approximately 35 million m3 by the end of 2015. ‘We remain confident in the long-term outlook for our business. Based on current projects under construction and potential opportunities for further expansion of Vopak’s network of terminals, it is our ambition to realize an EBITDA of €1 billion in 2016,’ Hoekstra adds. ‘Over the last six months, we have added new capacity in locations like Singapore and Spain. During the same period, we also divested two relatively small terminals, one in the Netherlands and a joint venture in China, as part of the continuous drive to further align our terminal network with long-term market developments.’

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OOMCO in talks for new terminal at Duqm Port Oman Oil Marketing (OOM) has revealed that it wants to build a terminal and establish a bunkering business at the Port of Duqm, Oman. According to OOM’s CEO Omar Ahmed Salim Qatan, the company is looking to expand in order to serve all vessels arriving at the port. ‘We are in the process of negotiations to acquire a footprint in Duqm by establishing a terminal and bunkering services. We hope to conclude negotiations in 2014,’ Qatan was reported to have said. He went on to say the company has its ‘master plan’ in place and is in talks with Duqm Port Authority, however he added it was ‘too early to give a timeframe as the process is still ongoing’.

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terminal news

Deadline revealed for second phase storage development at ATB A deadline has been reported on a second phase development at the Malaysia-based ATT Tanjung Bin oil terminal. It is believed, via terminal owner VTTI, the extra 250,000m3 and an additional berth for Aframax tankers is

due to be completed in the first quarter of 2015. It will boost the terminal’s storage capacity to 1.14 million m3. The new berth is expected to be able to handle both clean and dirty oil products, although the

exact allocation of tank capacity for each has yet to be decided. VTTI, owned jointly by Vitol Group and Malaysia International Shipping Berhad, puts the cost of development phase at around $100 million (€74.9 million).

Canadian storage tanks could buoy JP Morgan sales Multiple oil storage tank leases in Canada may be JP Morgan Chase’s (JPMC) secret attraction as it looks for buyers of its physical commodities business, according to news reports. JPMC’s long-term leases on more than a quarter of the oil storage tanks in Canada’s primary trading hub, which are owned by Enbridge, could offer ‘immediate and powerful entry’ to any company looking to

stake a claim in the physical oil market. The tanks are located in Hardisty, Alberta and have a combined capacity of over six million barrels, making it comparable to Cushing in the US, which is that country’s main crude storage hub. One Canadian crude trader was quoted as saying the ‘flexibility’ offered by the tanks was an important factor any purchaser would take on board.

New oil depots in Philippines gathers pace It is believed Kampac Oil Middle East is looking to invest in an oil depot project in the Philippines. Local news sources report Kampac chairman Charlie Ampofo met with President Benigno Aquino III to discuss the proposed multi-billion dollar project set for the borders of Quezon and Laguna provinces.

The project is alleged to sit well with government plans to relocate all oil storage facilities outside of Metro Manilla. A memorandum of understanding has already been signed by Kampac Oil with the Authority of the Freeport Area of Bataan which commits a 100 hectare site inside the Freeport for the project.

Fire at oil storage tank in eastern Siberia It has been reported that at least seven people were injured in a fire at an oil storage tank near the city of Angarsk, Irkutsk in August. A five tonne tank of crude oil caught fire at a refinery and it is believed it took more than a day to extinguish due to the lack of water and detour routes. Preliminary theories suggest the fire may have been caused by a violation of the operating rules, but details are unclear at this time.

Residents wary over newly proposed US storage facility A proposed tank storage and pipeline project in Pittsburg, US has been met with protests by local residents. WesPac Energy Pittsburg (WEP) has a reported $200 million (€151 million) development proposal to transform land into a facility capable of unloading crude oil from rail cars and ships, storing it and forwarding it through to local refineries via pipelines. The project would include the building of a new rail transload facility, upgrading most the current tanks and replacing four 500,000 gallon tanks with newer, smaller ones.

In terms of pipeline connectivity, a new line could be added to the Chevron KLM system and an existing connection to the San Pablo Bay pipeline would be repaired. But local residents, at a public meeting at the end of August, have raised questions over subjects like effects on air and water quality, gaseous odours, soil contamination and fire dangers. WEP is taking feedback on the project until midSeptember and a final Environmental Impact Report is due to be completed before December.

New oil storage terminal for Bangladesh Bangladesh-based Omera Fuels is to bring a new petroleum oil storage terminal online to reportedly increase the country’s fuel reserve required to run independent power plants. The terminal will have a capacity

of 70,000 tonnes, which is 63% more than the current combined capacity of three state-owned facilities. ‘The terminal is a solution for quick rental power plants that can import and manage its inventory efficiently,’ Omera chairman

Azam Chowdhury was quoted as saying. Omera and its sister company MJL Bangladesh are now awaiting permission to use a jetty from Bangdalesh Petroleum, but it is hoped commercial operations can begin in September.

September/October 2013 • TANK STORAGE

technical news

Petrotest becomes part of Anton Parr

Fafnir level sensors certified in Russia A range of magnetostrictive level sensors from Fafnir, a designer and manufacturer of sensors and control systems, has received the Russian GOST-R certification. The certification means Fafnir’s Torrix and Torrix Ex ranges can be supplied to Russia without the need for specific approval of each installation. Fafnir’s Torrix level sensor can be used across a variety of applications. It features a precise magnetrostrictuve measuring principle and is able to achieve accuracy of up to ±0.3mm.

Petrotest has changed its company name to Anton Paar ProveTec after being integrated into the Anton Paar Group. The new company has also introduced the Anton Paar brand into its instrument range. Petrotest’s instrument range includes solutions for fuel, lubricant and petrochemical testing. Anton Paar acquired the Petrotest Group in March 2012. Existing Petrotest customers will now be able to take advantage of Anton Paar’s service and support, through a network of sales partners and 20 subsidiaries around the world. After-sales services range from on-site product training, customerspecific seminars, application support, method development, the provision of certified reference materials and maintenance contracts.

These level sensors can now be sold in Russia

Fluid transfer companies clear to trade in Poland Emco Wheaton and TODO, design and manufacturer of technology for the transfer of petroleum products and hazardous chemicals, are expanding into Poland. With full TDT accreditation, the safety certificate required to sell oil transfer

products in the country, the Polish market is now open for the technology that both companies provide. Products Emco is hoping to get into Poland include ball valves, couplings for hazardous goods and LPG breakaway systems, nozzles,

New launch of liquid and temperature sensors Cynergy3 Components has launched a range of liquid level sensors for various applications including process The TSF range of combined float and storage tanks. temperature switches from Cynergy3 The TSF range includes liquids. By rotating the device two series: TSF40 and TSF70. through 180 degrees, the user The TSF40 series is a further can also reverse the switching development of Cynergy3’s action. The TSF40 is available RSF40 series liquid level sensors. in 25VA and 100VA versions. It is a compact level switch The TSF70 series is the with temperature sensing up externally mounted version of to 120°C. The switches are the switch. By incorporating a internal mounted versions and compression seal, the device so require access to the inside can be mounted from the of the liquid storage tank. outside of a liquid storage The switches are available tank. The TSF70 is also available in nylon, polypropylene or in nylon, polypropylene or polyphenylene sulphide, with a polyphenylene sulphide, with choice of cabling and gasket a choice of gasket materials materials to suit most common to suit most liquids.

TANK STORAGE • September/October 2013

API couplings and swivel joints. ‘We look forward to expanding the reach of our technology for the transportation of fuel and hazardous chemicals to the Polish market,’ says Andrew Dawson Goodey, general manager of Emco Wheaton UK.

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technical news

Analyser series reduces sensor replacement cost Predictive maintenance can help process and plant engineers reduce the cost of maintaining or replacing analyser sensor electrodes. Sentinel technology from Electro-Chemical Devices (ECD), a manufacturer of liquid analytical process instrumentation, alerts maintenance technicians to sensor electrode wear so that sensor electrodes are replaced only as necessary. Sensor replacement costs and labour time are therefore reduced, while water quality remains constant and other related equipment and systems continue to perform at high levels. Integrating the Sentinel into its new Model T80 Universal Transmitter and S80 Intelligent Sensor series provides Pre-pHault diagnostic information about the lifetime of a pH, ORP or plon measurement. The Sentinel display graphically shows a filled triangular gauge that decreases proportionally to the degradation of the reference electrode. A filled gauge indicates a new electrode that is functioning properly while an empty gauge indicates an electrode near the end of its useable life. In addition to the graphics, the Sentinel information is remotely transmitted by various user selected outputs providing an alert notification that the sensor electrode is nearing its useful life and will need

replacement to avoid downtime. The plugand-play Model T80 Universal Transmitter is a single channel transmitter designed for the continuous measurement of seven common industrial plant parameters, including pH, ORP, pION, dissolved oxygen, turbidity, The T80 transmitter from ECD conductivity or resistivity. The Model T80 digitally communicates solution ground using the optional T80 with any ECD Model S80 Intelligent input card as an input. It is available Sensor and automatically conﬁgures with 4-20 mA output with Modbus the transmitter’s menus and display RTU on 24 VDC and 110/220 VAC screens to the measured parameter. instruments. The T80 can be configured The T80 Universal Transmitter offers with optional HART 7 communication membrane switch navigation, a simple and optional three alarm relays. menu structure and LCD display. S80 sensors feature two sensor designs The T80 accepts any S80 intelligent – insertion/submersion or valve retractable sensor or any standard pH sensor with with flared end to prevent blow out.

Rotary Engineering wins multimillion EPC contracts Rotary Engineering, a maintenance and services provider in the oil and gas and petrochemical industry, has been awarded S$200 million (€119 million) worth of EPC contracts in Singapore and Saudi Arabia. One of these, an EPC contract awarded by a JV between three oil companies, is the construction of a shared lubricant storage terminal in southern Singapore. This will include the construction of 80 storage tanks, pipelines, import/export jetties and related infrastructure. The project will be carried out in phases starting this year and is targeted for completion in 2015. Rotary carried out the front-end engineering design study for the shared lubricant storage facility.

And in Saudi Arabia, three contracts were awarded by EPC players for projects in Jubail Industrial City. The first of these is for the EPC of 14 tanks for an elastomers plant that produces high specification synthetic rubber of various types. The second contract is for the erection of 28 tanks at the Sadara South Tank Farm, which is also part of the Jubail petrochemical complex. A third contract is for the fabrication works at a multi-feed petrochemical cracker in one of the world’s largest petrochemical complexes being built at Jubail. Rotary Engineering is also working to expand into Oman after it set up an office in the capital of Muscat.

Franklin signs agreement with Microfinish Valves US valve manufacturer Franklin Valve and Microfinish Valves of Karnataka, India have entered into a technology license agreement. Under the agreement, Microfinish will manufacture and sell the Franklin Duraseal DBB Plug valve in India, Pakistan, Bangladesh, Sri Lanka and Myanmar under its own brand. This new relationship will enable Franklin and Microfinish to benefit from greater scale and global opportunities, while working together on programmes to reduce costs and increase availability of the Duraseal product globally.

September/October 2013 • TANK STORAGE

technical news

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TANK STORAGE • September/October 2013

technical news

FCI flow meter is SIL compliant An air/gas flow meter from Fluid Components International (FCI) is now rated for Safety Integrity Level (SIL) 1 compliance service. FCI’s SIL compliance rating for its ST100 flow meter has been documented in a failure analysis report with FMEDA techniques by Exida, an accredited global functional safety certification company. The ST100 has been classified as a Type B subsystem in accordance to IEC 615081 with a hardware failure tolerance of 0. The Probability of Failure on Demand (PFD) meets SIL1 capability standards. FCI’s new SIL1 safety compliance assures its customers that Exida has tested the ST100 flow meter and when the product is in use, the process risk is reduced to the designated level. The device features a backlit LCD display and adapts as necessary with a plug-in card replacement

that can be changed out by plant technicians in the field. The flow meter provides continuous display of all process measurements and alarm status, and the ability to interrogate for service diagnostics. The ST100 stores up to five calibration groups to accommodate broad flow ranges, differing mixtures of the same gas and multiple gases, and obtains up to 1000:1 turndown. Also standard is an on-board data logger with a removable 2GB micro-SD memory card capable of storing 21 million readings. FCI says its ST100 is the first thermal flow meter to offer three different types of flow sensors to best match user applications. It features an integral flow conditioner and protective shroud for compressed air and clean gas applications.

The FCI flow meter is now SIL compliant The ST100 series is made up of two core model families: ST and STP. ST meters measure both mass flow and temperature, while the STP family adds a third parameter – pressure – meaning the ST100 is a triple-variable thermal flow meter. The ST100 can be calibrated to measure virtually any process gas, including wet, mixed and dirty gases. The basic insertion style air/gas

meter features a thermal flow sensing element that measures flow from 0.25 to 1000 SFPS with accuracy of ±0.75% of reading, ±0.5% of full scale. The ST100 is agency approved for hazardous environments, including the entire instrument, the transmitter and the, NEMA 4X/IP67 rated enclosure. Instrument approvals in addition to SIL1 include ATEX, IECEx, FM and FMc.

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technical news

Smith Flow Control develops new operating panel Safety engineering company Smith Flow Control has manufactured a custombuilt operating panel which enables a client to control a sequence of actuated valves. The operating panel can be used in a variety of applications that involve the use of actuated valves, for example to launch or receive a pig. The panel works as a communication and proofing system to improve efficiency and safety. A typical application often includes two interlocked key units to isolate power to the panel and ensure a specific sequence of operation. Using the panel, the operator can select to close the valves. Red LED lights prove that the valves have reached their fully closed position. When all valves are closed, the operator can isolate the panel by removing the ‘A’ key. The ‘A’ key is entered into the solenoid key unit and, only when the safety and automation system confirms all valves are closed, is a permissive signal sent to energise the solenoid and release the ‘B’ key. This allows the operator to safely continue the mechanical interlocking sequence, for example, to manually unlock a pig

Smith Flow’s operating panel for controlling actuated valves trap door to load or unload a pig. The panel is made to support applications in aggressive environments, suitable for temperatures ranging between -40 to 55°C with an antireflective coating that eliminates glare. It is designed to meet strict safety

guidelines and regulatory body requirements. It is made using 316 Stainless Steel and conforms to Zone 1 Ex de classification and protection class IP66. It also features a compact design and can be used in weight restricted and space-limited areas.

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technical news

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Rotork increases high pressure capacity of pneumatic regulator range Rotork Fairchild, a member of the Rotork group of flow control companies, has increased the high pressure capacity of its leak-free pneumatic regulators for instrument and industrial control applications with the introduction of a new HPP range. A companion to the recently announced HPD diaphragm style range of regulators, the new High Pressure Piston (HPP) range incorporates a piston design to manage supply pressures up to 413bar (6,000 psi) at temperatures up to 260°C and deliver high output pressures between 207 and 69bar. The HPP high pressure performance complements that of the HPD, which will also manage supply

pressures up to 413bar and accurately regulate lower output pressures down to between 35 and 1.66bar. The HPP and HPD ranges feature 316 stainless steel bodies and patent pending improved valve seat sealing that eliminates the risk of media leakage often associated with conventional high pressure regulators. Both ranges are available with 6mm ports in either 2 or 4 port configurations and in multiple output pressure ranges. Standard knobs can be replaced with tamper proof caps for high temperature and/or nonadjustment applications. Rotork Fairchild regulators can be mounted at the ports, the bottom surface or in panel mounted configurations.

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September/October 2013 • TANK STORAGE

technical news

Dantec launches fire-safe vapour release system

SGB expands terminal distribution network

Composite hose technology specialist Dantec has added a unique innovation in fuel transfer application with its firesafe vapour release system (VRS) to its product range. In addition to a thorough testing system at its purpose built Moreton factory, located in Meryside, the firesafe VRS has been independently approved by the British Government Department of the Environment, the Fire Research Station and also the Swedish Fire Service. This composite hose technology uses high specification materials which provide key advantages when safety cannot be compromised in terms of flexibility, weight, chemical resistance and price over other forms of flexible hose. The VRS technology works by using a series of nonasbestos barriers to conductive and radiation heat in order to

Germany-based SGB, a producer of leak detection technology, has extended its international distribution network. With three new partners in China, Japan and Taiwan, leak detectors for double walled tanks, pipes and containments have been put on the Far East market. Customers will benefit from short delivery distances and times. In China SGB works with Windbell Electric, a company involved with retail petroleum equipment. The company is based in Zhengzhou, Henan province and focuses on petrol station equipment, vapour recovery systems and safety monitoring. One of its main products is automatic tank gauges. SGB’s new partner in Japan is P&D Japan, a reseller of retail petroleum equipment based in Yokohama. Also an exclusive partner of SGB is the Taiwanese Bay Chain Engineering, a specialist in planning, designing, installation, training and operation on oil/chemical fields. SGB says its new partnerships mean it has completed its presence in East Asia.

achieve outstanding fire slowing performance. Vapour is released gradually in a much more controlled way, therefore providing an early warning signal unlike other hoses in order to prevent a sudden catastrophic failure. Another key advantage is that even after a fire attack that has lasted more than thirty minutes with temperatures reaching over 1,200°C, the hose is still intact because instead of catastrophically failing, the firesafe hose will gradually burn off the product as it presents itself to the atmosphere making it capable of holding product, a vital element from a fire fighting perspective. Fire-safe VRS works effectively because of the high specification of materials. The product is manufactured using a combination of internal and external fireproof layers and covers to ensure maximum safety.

TANK STORAGE • September/October 2013

incident report tank terminal update

Providing terminals with up-to-date information on fires, leaks, spills and accidents in the oil and petrochemical industry n 19/08/13 Brownies Oil, a division of Reed Oil A 10,000 gallon diesel fuel storage tank exploded in western Pennsylvania, killing one Pennsylvania, US worker. The blast and fire occurred in the Reynolds Industrial Park near Greenville, about 80 miles northwest of Pittsburgh. Gary Clark, a spokesman for the state Department of Environmental Protection, said investigators were trying to determine whether the explosion may have been sparked by a welder working about 300ft away from the aboveground tank. He said the victim was believed to have been the welder.

n 11/08/13 Refinería Puerto La Cruz Puerto La Cruz, Venezuela

n 07/08/13 DeeThree Exploration

Calgary, Canada

n 12/07/13 Caltex Australia Sydney, Australia

n 09/07/13 Montana, US

A fire broke out at Venezuela’s 187,000 bpd Puerto la Cruz oil refinery after the facility was struck by lightning. Heavy storms affected two of Venezuela’s key oil refineries as one facility was struck by lightning, resulting in a fire, while another was hit by a power outage, officials from Petroleos de Venezuela (PdVSA), said. The flames were completely extinguished by nightfall and there were no injuries. Meanwhile, 230 miles west, the 140,000 bpd El Palito refinery was paralysed after heavy rains caused a power outage in the region, a PdVSA spokesman said. He said workers had already begun restarting the facility and it was expected to be fully operational soon. The incidents are the latest to hit Venezuela’s oil industry which, in recent years, has been marred by frequent mishaps at its production and refining plants. A year ago, more than 40 people were killed by a gas leak explosion at the Amuay refinery in the country’s deadliest accident to date. Critics of the government blamed the explosion on lack of maintenance, charges that PdVSA officials firmly denied.

The Alberta Energy Regulator (AER) is investigating an incident in which the roof blew off a large storage tank and oily water sprayed over an area the size of a football field at a natural gas production facility. AER investigators arrived on the remote site, seven days after DeeThree Exploration reported the incident. The site is accessible only by helicopter. Thousands of similar storage tanks are found at oil and gas production facilities across the province. The eruption happened after 6pm. No one was injured. DeeThree operates about 20 natural gas wells in the area. The gas is piped to the production site along with a mixture of water and oil that comes up with it. The water and oil are separated and stored in different tanks. The so-called ‘produced water’ that comes up the gas wells contains small amounts of hydrocarbons and is called an emulsion. It is stored in three 400 gallon tanks on-site. One of the tanks was being heated to ‘steam off the water’ when the roof blew off. The company has never had a similar incident with a storage tank. Operations on the site were halted until the investigation is complete. Under AER regulations, oil companies are required to dispose of produced water safely. Several methods are available. Injecting it back into the ground is one common method. Companies are allowed to heat produced water sitting in storage tanks to keep the water flowing in winter. But disposing of the water through steam is not allowed under regulations.

Caltex Australia’s Banksmeadow fuel terminal at Port Botany was closed after 130,000 litres of petrol leaked from a storage tank. The incident occurred while a routine maintenance job was underway at the 2 million litre tank Sam Collyer, a spokesman for Caltex, was reported to have said. Fire fighters were called to the site and covered the spilled fuel in foam to prevent it from catching alight. The leak was contained and transferred into a holding tank. No-one was injured but four people – two terminal workers and two fire crew members – were treated for exposure to the fumes. Production at the company’s nearby 124,500 bpd Kurnell oil refinery was unaffected by the leak.

Two oil storage tanks were destroyed in a fire which started after lightning struck an industrial oil storage tank near Roundup at around 7.15pm. A pair of small oil tanks was destroyed and a total 50 gallons of oil burned. The ground was not contaminated. The fire failed to spread to a much larger oil storage tank located close by. No injuries were reported.

September/October 2013 • TANK STORAGE

tank terminal update

Tank terminal update – Africa Mashreq Petroleum Location Products Capacity Construction / expansion / acquisition Project start date Investment Comment

Egypt Liquid bulk and bunker fuels 800,000 tonnes Capacity May 2013 (announced) EGP3 billion (€325 million) Mashreq signed a 25-year concession agreement with the East Port Said Port Authority. The project will be completed in several phases

BOSTCO Location Ahanta West District, Ghana Products Petroleum products and LPG Construction / expansion / Construction acquisition Project start date 2012 Completion date 2014 Investment $200 million (€151 million) Comment It will be financed through a loan from the China Development Bank. Phase one of the terminal will include 20,000m3 of initial storage capacity for LPG and 150,000m3 for refined petroleum products from the terminal at Pumpuni

Petrocity Energy Location Products Capacity Construction / expansion / acquisition Project start date Investment Comment

Konza, Kenya Petroleum products 150 million litres Construction of 12 storage tanks July 2012 (announced) 1.5 billion Kenyan shillings (€12.9 million) The terminal will be constructed in phases; phase one is expected to comprise 40 million litres of storage capacity

VTTI Location Mombasa, Kenya Products Oil Capacity 110,000m3 Construction / expansion / Construction acquisition Completion date January 2013 Investment $60 million (€45.5 million) Comment The first phase of this storage terminal was completed in March 2012 and includes six tanks. Phase two, comprising four tanks, was finalised at the end of last year and VTTI Kenya was successfully commissioned on 23 January when 9,600m3 of automotive gasoil from MT Uzava was shipped to Vivo Energy Kenya

TANK STORAGE • September/October 2013

Liberia Petroleum Refining Company and Petro Trade Location Liberia Products Petroleum products Capacity 800,000 tonnes Construction / expansion / The two companies have agreed acquisition to re-launch the damaged terminal as a state-of-the-art facility by the end of 2014 Project start date April 2013 (announced) Completion date Q3 2014 Investment $3.4 million (€2.5 million) Comment Under the deal, the two companies will build an automated loading gantry at the site in Nimba County, in addition to a firefighting system, petroleum testing laboratory and pump house

Avedia Energy Location

Port of Saldanha in Cape Town, South Africa Products LPG Capacity 8,000 tonnes Construction / expansion / Construction acquisition Project start date 2013 Completion date Q4 2014 Investment R300 million (€22.2 million) Comment Avedia received four storage tanks in June totalling 4,000 tonnes of capacity. They were shipped from a manufacturing plant in China

Total South Africa Location Durban, South Africa Products Oil Construction / expansion / Expansion acquisition Project start date April 2013 (announced) Completion date 2015 Investment R90 million (€6.6 million)

Oiltanking Grindrod Calulo Location Products Construction / expansion / acquisition

Project start date

South Africa Molasses and vegetable oils Acquisition of Grindod Tank Terminals, including two liquid bulk terminals: one in Durban and a second in Cape Town March 2013 (announced)

tank terminal update Tanzania International Petroleum Reserves Location Tanzania Products Petroleum products Capacity 300,000m3 Construction / expansion / Expansion from 147,000m3 acquisition to 300,000m3 Completion date 2015 Investment $16 million (€12.1 million) Comment The first phase of the expansion project will increase TIPER’s capacity by 72,000m3; the company brought online two 36,000m3 tanks this year, with the remaining storage tanks due to be installed and operational by 2015

Lusaka-West Fuel terminal Location Zambia Products Petroleum products Capacity 9.5 million litres Construction / expansion / Construction acquisition Completion date Mid-2013

Government of Zambia Location

Four Zambian provinces: Lusaka, Western, Northern and North-Western provinces Products Fuel Construction / expansion / Construction acquisition Designer / builder Dalbit International Project start date March 2013 Investment $40.2 million (€30.4 million) Comment The Lusaka terminal will feature six storage tanks with a total capacity of 25 million litres. In Mongu, Western province five tanks will be built with a combined capacity of 6.5 million litres in addition to product loading gantries, fire fighting systems and offices. The terminals in Mpika in Zambia’s Northern province and in Solwezi, North Western province were both be finalised earlier this year. The Mpika depot will have a 6.5 million litre storage capacity 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 keeley@horseshoemedia.com

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September/October 2013 • TANK STORAGE

terminal news

TANK STORAGE â&#x20AC;˘ September/October 2013

bulk liquid storage in Africa

Africa offers significant opportunities for the bulk liquid storage sector, particularly in oil products, but the continent’s inadequate inland communications infrastructure remains a major challenge to demand growth

Africa:

a continent of opportunity and challenge by Lynda Davies One of Africa’s largest and longest-established independent providers of oil and gas products and services is Swiss company Oryx Energies which today owns bulk liquid storage terminals in Tanzania, Sierra Leone, Senegal, Nigeria and Benin. It also has a large oil storage terminal under construction at Las Palmas in the Canary Islands, which will serve the west African market and the bunkering market coming on stream next March. ‘We have two kinds of terminals. We have storage facilities that are essentially dedicated to third parties, that would include TIPER in Tanzania, and in the future, the new terminal in Las Palmas,

and Calabar in Nigeria,’ says Thierry Genthialon, MD of asset management and business development at Oryx Energies. ‘The others are always open to third party storage but we tend to use them to full capacity and that’s the case at Dakar in Senegal, in Benin, Sierra Leone and at our other terminal in Tanzania.’ In addition to the TIPER terminal in Dar es Salaam, which Oryx Energies jointly owns with the Tanzanian government and has management control, the company wholly owns another bulk liquid import terminal in the port. This latter facility provides further bulk fuels storage as well as additional lubricant storage at its blending plant. This

terminal typically is fully utilised by Oryx Energies and is not formerly open to third parties, although Genthialon says the company is always happy to accommodate requests for storage. The TIPER terminal was established on the site of a former decommissioned oil refinery and the existing tanks – like those currently under rehabilitation – are all former crude tanks. They are all fit to store less volatile products, such as gasoil and fuel oil, but mainly store gasoil at present as this is where the demand is. TIPER was afforded access to a single mooring point (SPM) by the Tanzanian authorities from November 2012, providing a single buoy where all large incoming

vessels have to offload. The SPM is aimed at saving on offloading times and costs. Already the largest bulk liquid import and storage terminal in the country with 150,000m3 of storage capacity in place across 30 tanks, work is underway to rehabilitate a further 100,000m3 of TIPER’s storage. The first two 35,000m3 tanks – which are former crude tanks – are expected to become operational in the second half of July 2014, while the rehabilitation of the remaining tanks is targeted to be completed in 2015. ‘We have a lot of spare land at the TIPER site as it was a former refinery. If we have the demand, we are happy to build further tanks,’ adds Genthialon.

Panoramic view of Oryx Energies depot in Las Palmas

September/October 2013 • TANK STORAGE

bulk liquid storage in Africa Oryx Energies is currently one of the largest oil product suppliers in Tanzania, bringing in 800,000 tonnes of product (including LPG) in 2012. Las Palmas project Construction of the company’s milestone fuel and gasoil terminal at Las Palmas in the Canary Islands is on schedule for completion by the end of this year. The new facility, which is Oryx Energies’ first presence in the Canary Islands, will have storage for 221,000m3 and access to a long, deep water jetty. It is expected to become fully operational by March 2014. ‘An important portion of the storage capacity at our Las Palmas terminal will be available for third parties,’ Genthialon says. ‘Our sister company doing trading will be using this terminal as well but on the same terms as third parties.’ Oryx Energies is also adding a tank for the storage of bioethanol at its oil storage facilities in the port of Freetown, Sierra Leone. The existing Freetown assets are owned and managed via Petrol Leone, a joint venture with Leone Oil. Located in the port’s hydrocarbon terminal on the Kissy peninsula, they comprise three directly-owned tanks with a combined capacity of 36,000m3 which mainly store gasoil and fuel oil, and two other tanks on a longterm lease with aggregate capacity of 24,000m3 which typically store petrol. The tanks currently manage a combined throughput volume of more than 160,000 tonnes a year. The 15,000m3 bioethanol tank – which is a wholly owned Oryx Energies’ development – will serve the needs of Addax BioEnergy, a subsidiary of Oryx Energies’ parent company AOG, which is developing a sugarcane-derived bioethanol and electricity project in central Sierra Leone. The

Oryx Energies’ bulk liquids storage terminals Location Ownership

Current Expansions capacity underway

TIPER, Dar es Salaam, Tanzania

A 50/50 JV between Oryx Energies and the Tanzanian govn. Oryx Energies has management control

150,000m3 100,000m3

Dar es Salaam, Tanzania

100% Oryx Energies

30,000m3

Calabar, Nigeria

Oryx Free Zone 30,000m3 Enterprise owned by local petrol distribution company, Phoenix, in which Oryx Energies holds a majority stake

Freetown, Sierra Leone

Petrol Leone, a jv 60,000m3 between Oryx Energies and Leone Oil

Freetown, Oryx Energies Sierra Leone

15,000m3 (bioethanol) and a new jetty

Dakar, Senegal Oryx Energies

Just under 50,000m3

Cotonou, Benin

Oryx Energies

55,000m3

Las Palmas, Canary Islands

Oryx Energies

221,000m3

new operation is expected to start up January 2014.The bioethanol will be trucked to Freetown, where the new fit-for-purpose tank will connect to a new future jetty that Oryx Energies will build at Kissy through a concession. The new jetty, destined to replace the existing ageing facility, will handle all petroleum products, including LPG, and will be open to all marketing or trading companies wishing to import or re-export products into or from Sierra Leone. Bioethanol throughput, all of which will be destined for the European market, is anticipated to reach about 63,000 tonnes per year in the initial years of the new operation. ‘There is more land in the bank so there is potential to plant more cane and produce and export more ethanol,’ Genthialon explains. ‘Oryx Energies has access to more tanks at the port via our partners. As with the TIPER terminal in Tanzania, our facilities here in Freetown are

TANK STORAGE • September/October

sited at a former oil refinery which was decommissioned and there is another terminal which was secured by our local partner. But, as with the bioethanol tank we are currently working on, the additional tanks need to be rehabilitated but potentially could store bioethanol or any other product.’ Infrastructure challenges Genthialon is positive about the opportunities for the bulk liquid storage sector in Africa, although he says the region’s ‘inadequate inland communications infrastructure is a major challenge’. ‘The main purpose of storage in Africa is not quite the same as northern Europe or on the American coasts, where the ports have twoway traffic. Most of the ports in Africa have one-way traffic, handling imported product and product for further distribution on the coast or inland,’ he explains. ‘So what will drive

the need for storage is local demand which itself is dependent upon the demography – which is favourable – and the economic growth which itself is linked to the development of natural resources. It is no secret that Africa has a lot of potential in that respect. Guinea, the DRC, Zambia or Sierra Leone are here to prove it. So there is definitely growing demand,’ he continues. ‘But oil product demand will only take off when the continent has a proper communications network of roads and rail, which are currently either in a poor state or are non-existent. This is the big challenge and ports are part of Africa’s general communications challenge.’ For bulk liquid storage companies looking to establish terminals in Africa, Genthialon says the main challenge is first getting access to a proper jetty with a decent draft. ‘If you look at the eastern coast of Africa, unfortunately there are few deep water ports, maybe five or six at the most on the whole of that long coastline. This is also true for South Africa,’ he explains. ‘To find a space to build a new terminal in South Africa, for example, it is difficult. There are not that many ports and, within the ones already there, Transnet, the state ports authority, has tight control. At Durban, Saldanha Bay, Cape Town, Richards Bay – at all these ports it is difficult to get access to suitable land. The land is put out on tender; it is a complex process and there are a lot of bureaucratic steps to get all the necessary permits. It’s a major challenge.’ Even in west Africa, Genthialon says some ports do not have a big enough draft or are too busy which results in demurrage. This is also certainly the case in Mombasa on the east coast where there are huge demurrage bills as existing facilities are not

bulk liquid storage in Africa so efficient at handling the volume of cargo coming in. Long learning curve ‘There is a learning curve to working in Africa, and it is long,’ he says. Oryx Energies’ involvement in Africa dates back to 1987. Its initial presence was as a trading company under the name Addax Trading, and which acquired its first terminal in Dakar in 1989, buying it from ExxonMobil. From then, the company continued in parallel, expanding its trading activity and its downstream footprint as well. It acquired tanks in other sub-Saharan countries and built a new oil storage terminal in Benin, which opened in 1999. In early February this year, the trading business, Addax Trading Group, and the downstream storage and distribution activities business Oryx Oil and Gas, were merged under one company called Oryx Energies. The company is now wholly owned by the private investment group AOG, headquartered in Geneva, and has a presence in more than 15 sub-Saharan countries. Infrastructure challenges notwithstanding, in addition to the potential for demand growth for commercial oil storage in the region, Genthialon says there are opportunities for terminals to serve a strategic storage purpose. ‘Lots of African countries have virtually no strategic storage. Sometimes they have only a week or two weeks of consumption in the tanks,’ he explains. ‘So there are more and more countries on the continent which are thinking of having bigger or larger strategic reserves, including the landlocked countries.’ He cites Rwanda as an example of one such country interested in securing storage capacity for strategic oil reserves. He says Oryx Energies is currently exploring with the

Rwanda government the possibility of building additional storage tanks at the TIPER terminal to house oil reserves for the landlocked country. TIPER would store oil products imported by Rwanda and would truck the product to the country when required. Genthialon says the company has seen interest for similar projects in some of the West African countries where it has terminals. ‘Landlocked Mali’, he says, ‘is definitely looking for strategic storage and this is something that could be done both at Oryx Energies’ terminal in Benin and the company’s Dakar storage facility in Senegal’. Island View’s capacity constraints South Africa’s Island View Storage (IVS), an independent bulk storage provider, has seen volume declines across all sectors of its business as a result of the economic downturn and the Transnet Pipelines’ New Multi-Product Pipeline (NMPP) becoming operational, according to IVS’ MD David Leisegang. The 705 km nominal bore trunk line of the NMPP system from Durban to Jameson Park, south of Johannesburg, became operational in January 2012, and – according to Transnet – transported 2.7 billion litres of diesel in fiscal year ending 31 March 2013. Designed to handle 4.4 billion litres a year, the new pipeline is aimed at enhancing Transnet’s capacity to service the transport needs of refined petroleum products such as petrol, diesel and jet fuel along the Durban-Gauteng corridor, and reducing road traffic. Transnet is ultimately looking to reach an installed capacity of some 8.7 billion litres a year for the NMPP. The company is continuing to run the existing smaller bore Durban to Johannesburg pipeline concurrently with the new pipeline.

Transnet is building two storage terminals to serve the NMPP: a coastal terminal at Island View and an inland terminal at Jameson Park. Both are scheduled to be completed later this year. IVS, which is part of the Bidvest Group, has over 700,000m3 of storage capacity with facilities on the coast in Durban and Richards Bay and inland at Isando near O.R. Tambo International Airport, Johannesburg. The company handles chemicals, gases, edible and inedible fats and oils, and lube oil additives. IVS’ business has also been impacted by the severe shortage of tank capacity in the port of Durban, which is due largely to the lack of available land within the Island View area of the port. ‘In the past 10 years, IVS’ tank capacity at the port of Durban has increased by only 6% while volumes handled have gone up by 47%,’ says Leisegang. The company consequently embarked on a site capacity improvement project to review the layout and design of all nine sites at its Durban terminal to assess how the current constraints on tank availability could be alleviated. Following the review, it opted to pursue a capacity improvement at the terminal’s Quarry 1 site, which was the first site established by IVS in 1953. The company’s Durban terminal currently has total storage capacity for 420,000m3 and handles products for import and export purposes plus transit. ‘IVS is currently building 17 new tanks with total capacity of 26,000m3 at our Quarry 1 site as part of our capacity improvement project. This project comprises demolishing seven old tanks and adding 17 new ones in an improved layout that will utilise the available land much more efficiently,’ Leisegang explains. On completion, the project

will result in a net increase in capacity of 20,413m3. Commissioning is anticipated at the end of April 2014. IVS’ Durban terminal is served by four common user berths owned by stateowned Transnet National Ports Authority (TNPA), with drafts ranging from 9.6m to 10.3m. As part of its reconstruction of the Island View petrochemical and oil berths, which have become inadequate in the face of larger vessels and are also ageing, TPNA is reconstructing Island View’s berths 2 and 5 among others. On completion of the work, which includes a deepening of the draft alongside, berth 2 will be able to accommodate tankers up to 60,000 dwt. TPNA is scheduled to complete the reconstruction of berth 2 shortly. Work on berth 5 is expected to be completed this coming January and will enable the berth to handle vessels of up to 45,000 dwt. At its Richards Bay terminal, IVS has total storage capacity for 260,000m3, and can receive and distribute products by ship, road and rail. The facilities mainly store chemicals and specialised liquefied gases in dedicated tanks. The terminal is served by two common user ship berths owned by TNPA. The company’s Isando inland terminal has storage capacity of 33,600m3, mainly for edible and inedible fats and oils, chemicals, lube oil additives and petroleum products. Vopak Durban expansion Vopak is another independent storage company with a bulk liquid terminal in Durban. The company’s 123,379m3 facility in Island View has 141 tanks and handles petroleum products, chemicals, vegoils and oleochemicals. Most of the volumes are inbound cargoes for the South African market, which are landed at the port’s berth 5, owned by TNPA. Last year Vopak sold a

September/October 2013 • TANK STORAGE

bulk liquid storage in Africa 30% non-controlling interest in Vopak Terminal Durban to local petrochemical, energy and mining services investment firm Reatile Chemicals, part of the Reatile Group. Vopak and Reatile’s relationship dates back to 2009, since when the two companies have jointly been developing growth opportunities in South Africa. ‘With Reatile, Vopak Terminal Durban gains a shareholder contributing extensive local business experience required to enable further growth,’ says Erik Kleine, MD, Vopak South Africa. Vopak is currently expanding capacity for the storage of oil products at its Durban terminal, with 51,500m3 of new tankage being added. The new tanks are being developed on land already held by the company and are scheduled to be commissioned in the first quarter of 2015. ‘Our terminal has historically been used for chemical storage, and the chemical market is still a solid basis [for our business],’ Kleine says. ‘In addition, we are experiencing an increasing demand for storage of petroleum products, which opens up new opportunities for additional growth.’ Kleine sees significant opportunities in the local market for the company. ‘South Africa is developing and the country’s middle class is growing, generating an increase in energy consumption. According to Vopak’s market analyses, the rising need for petroleum products can only be met by growing imports, mainly of diesel and petrol,’ he says. ‘Over the past years, the local production of clean products could meet the demand in the region, but with the ongoing developments in the country the demand/ supply imbalance will grow quickly. The current infrastructure will need to

be adapted, which is where Durban comes into play. Seventy per cent of South Africa’s consumption is in the Gauteng/KZN area, and Durban is the best place to import,’ Kleine explains. Landing import cargoes requires infrastructure which is currently severely limited and congested, and is why Transnet Pipelines has built the NMPP, he adds. ‘The feeding of this line will be crucial and we are looking to support the market with more open and independent infrastructure in Durban to support the inland energy supply,’ Kleine says. Vopak has been reported in local media to be considering new storage terminal investments in Richards Bay and Gauteng. Richards Bay’s deep harbour and its proximity to Gauteng – South Africa’s economic and industrial powerhouse – make it an ideal location for a new facility. Kleine says Vopak is constantly searching for new opportunities in the growing storage market and many areas and countries are subject to feasibility studies

by the company, among others in South Africa. West Africa is another region where Vopak continues to explore investment opportunities in new hub locations. One such opportunity being explored, subject to feasibility studies, is the potential to build an oil storage terminal on Bioko Island in Equatorial Guinea. Oiltanking acquisition Marking Oiltanking’s first acquisition of bulk liquid terminals in Africa, Oiltanking Grindrod Calulo (OTGC), a 46% owned subsidiary of the company, reached a deal early this year to acquire Grindrod Tank Terminals, the owner of two bulk liquid terminals in South Africa. The two terminals, one located in Durban and the other in Cape Town, are used to import, store and redistribute molasses and vegoils, In addition to these products, OTGC has secured licences to store high flash point liquids such as glycols, caustic soda and base oils. The Grindrod Tank Terminals business also comprises a road tanker fleet.

Oiltanking, at the time the agreement was announced in late February, described the acquisition as the first step of its strategy ‘to provide know-how and expertise in bulk liquid logistics to the South African market’. The two terminals give OTGC a presence in two of South Africa’s busiest ports, Durban and Cape Town. These terminals currently have respective storage capacities of 140,000m3 and 120,000m3 and are understood to have sufficient land and jetties for further expansion. Expansions of the existing storage capacities already were underway at the time the deal was reached to purchase Grindrod Tank Terminals from freight logistics and shipping company Grindrod. At Durban, an additional 45,000m3 is being added while the Cape Town terminal is seeing a further 20,000m3 of storage being built. OTGC is understood to be the preferred bidder for a proposed new bulk liquid terminal development at the port of Coega, near Port Elizabeth, although the current status of this development is unclear.

Vopak’s Terminal in Durban, South Africa

TANK STORAGE • September/October

profile

Wider repercussions When ENOC opened its new 508,000m3 terminal facility in Tangier last year, it had three main purposes: serve the local market, provide bunker fuel and draw on business from Europe. ‘The terminal is located at the crossing of two major maritime routes and only 15km from the European Union,’ explains Philippe Marache, GM of Horizon Tangier. What the terminal was not banking on however, was the market shifting to backwardation. ‘It’s not a good time for trading and throughput levels have slowed significantly,’ Marache points out. The facility entered the planning stages back in 2006, when the storage market in Europe was booming. Due to land reclamation, bad weather and the EPC contractor’s bankruptcy, the terminal was only commissioned in 2012. ‘We have adapted as the market changed and the terminal is still 95% rented out. We are just doing more for the local market than we expected,’ Marache says.

Horizon Tangier has just completed a new rail facility, capable of transporting 300,000m3 ‘This should help

ENOC’s Tangier terminal in Morocco is only 15km from the EU The terminal has a strategic location on the North African coast at the western entrance to the Strait of Gibraltar

where the Mediterranean Sea meets the Atlantic Ocean. It was designed to help address the shortage of storage facilities in northern Morocco, which helps reduce the historical costs associated with the supply of gasoil and motor fuel that comes from central Morocco to the north. However, even now the terminal is built, there is still a shortage of terminal capacity in the north of the country as Morocco is so long and thin. To compensate

serve Casablanca, the largest city of Morocco,’ Marache explains. ‘But there is still space for an additional terminal in midMorocco, especially now the market is opening up and competition is growing.’ The terminal is equipped with two berths of 30,000 dwt to 70,000 dwt in addition to eight truck loading bays for petroleum products, rail wagon loading, blend plant and recirculation systems. When it comes to Horizon Tangier’s expansion plans, the facility is already fully occupying its 12 hectares, so there is no room for growth. ‘We are instead focusing on fine tuning the facility and building additional pumping capacity,’ Marache adds.

September/October 2013 • TANK STORAGE

Contact Details

Neda

Engineering Group (Pty) Ltd.

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Neda Reception +27 13 755 4093 Neda Fax +27 13 755 4094 Website www.neda.co.za E-mail neda@neda.co.za Address 21 Brander Street, P.O. Box 5251, Nelspruit Mpumalanga, 1200, South Africa David Naudé +2782 442 6358

Designing and managing YOUR project in Africa Neda are a multi-faceted and multi-disciplinary engineering company operating in the bulk fuel storage of Oil, Gas and Chemical products throughout Africa

Multi-faceted Multi-disciplinary • Mechanical Engineers • Structural Engineers • Civil Engineers • Electrical Engineers • Petroleum Engineers

• Project Managers, Consultants. • EPC Contractors • Approved Inspection Authority • Design Engineers • API 653 and API 570 Inspection • Non-Destructive Testing

Services

• Design and Project Manage Tank Farm Construction - as per API and NFPA Standards • Design and Project Manage Bulk Storage Facilities for LPG, Ammonia and other Chemicals - as per API and NFPA Standards • Design and Project Manage of airfield refuelling systems as per API and NFPA Standards • Permanent Life Assessment of existing plants and infrastructure • Due Diligence Assessments of mature plant • API 653; 570 and 510 Inspections with non-destructive testing (MFL, GUL, RT and UT) • Tank strapping and calibration to API MPMS standards.

TANK STORAGE • September/October

regulations

Jane Besch, CPP manager for operational excellence at Vopak Americas, takes a look at the regulatory agenda affecting terminal operators With President Barack Obama’s second term now underway US policy has a renewed focus, at least for the Environmental Protection Agency (EPA), on greenhouse gases and climate change, as well as safety and security. Gina McCarthy was officially confirmed as the new EPA Administrator in July. McCarthy had been the assistant administrator for EPA’s Office of Air and Radiation under Lisa Jackson. She was chosen, in part, for her work at the EPA relating to climate change. In late July, McCarthy gave her first public speech at Harvard Law School, where she argued that climate change solutions and other environmental protections can fit into a national and global economic agenda – they do not have to be in opposition to one another. She challenged: ‘Can we stop talking about environmental regulations killing jobs, please?’1 McCarthy also praised the efforts of Obama in his first term stating it was some of the most productive years in the agency’s history. She does, however, recognise that there will be many challenges ahead: ‘Climate change will not be resolved overnight but it will be engaged over the next three years – that I can promise you.’2

Clearly, this sets the tone for the EPA over the next three to five years. Some of the regulatory initiatives on climate change currently include those related to transportation and mobile sources, such as specified fuel usage and the renewable fuels programme. For stationary sources, there has been work done to regulate emissions from new power plants, the final greenhouse gas tailoring rule has been passed, and the greenhouse gas reporting programme is underway. Based on McCarthy’s comments recently, we can expect more to come. Also on the EPA agenda are some other interesting rules that could affect tank owners. The Solid Waste and Emergency Response section of EPA is scheduled to finalise revisions to the UST regulations. This is slated to be completed in 2014. The UST regulations were first introduced in 1988 and have been effective in reducing the number of incidents from retail petroleum marketers and other facilities managing underground storage tanks (USTs). However, there is a need to revise the regulations to incorporate changes to the UST programme from the Energy Policy Act of 2005, as well as update outdated portions due to

Besch: three new rules concerning electronic reporting are due changes in technology. Under the EPA proposed rule, they consider adding secondary containment requirements for new or replaced tanks and piping; adding operator training requirements; adding periodic operation and maintenance requirements for UST systems; removing certain deferrals; adding new release prevention and detection technologies; updating codes of practice, making editorial and technical corrections and updating state programme approval requirements to incorporate the changes.3 There are three rules related to improvements for electronic reporting. The first is for the use of electronic manifest under the Resource Conservation and Recovery Act (RCRA). The revisions are aimed to finalise the development of RCRA standards and procedures that will govern the initiation, signing, transmittal and retention of hazardous waste manifests using electronic documents and systems. The final rule is scheduled to be issued in the fall of 2013. The second initiative

dealing with electronic reporting is under the National Pollutant Discharge Elimination System (NPDES) programme. Through this the EPA seeks to ensure facility-specific information would be readily available, accurate, timely and nationally consistent on all facilities regulated under the NPDES. This final rule is expected in 2014. The third item dealing with electronic reporting is for the reporting and recordkeeping requirements for New Source Performance Standards. Its goal is to improve emission factors, something the EPA has been under some pressure to update by environmental groups. The agency had sought comment on acquiring data for the development and improvement of emission factors, specifically proposing to require the submission (via electronic reporting) of performance testing information that is already collected by industry. In addition to requiring electronic submittal of performance test data, it would require electronic submittal of other

September/October 2013 • TANK STORAGE

regulations data such as excess emission reports. The data collected would be used to further rule development, control strategies, rule effectiveness studies and emission factor updates. This rule is currently in the proposed rule stage and the chance to provide comment is still available.4 Security On 1 August Obama signed an Executive Order titled Improving Chemical Facility Safety and Security. It sets forth a Chemical Facility Safety and Security Working Group that must provide his Administration a status report and implement certain actions. The group will be working to: 1) Enhance information collection and sharing – they must submit a proposal for a coordinated, flexible data-sharing process which can be used to track data submitted to agencies for federally regulated chemical facilities, including locations, chemicals, regulated entities, previous infractions and other relevant information 2) Develop policy, regulation and standards modernisation – The group is to develop options for improved chemical facility safety and security that identifies improvement to existing risk management practices through agency programmes, while engaging all key stakeholders 3) Identify best practices – the group is to convene stakeholders, including chemical producers, chemical storage companies, agricultural supplier companies , state and local regulators and first responders in order to identify and share success stories and best practices to reduce safety risks and security risks

4) Improve operational coordination with state, local and tribal partners – the group must develop a platform to support and further enable group opportunities to work together to improve chemical facility safety and security 5) Enhance federal coordination – the group will develop and deploy a pilot programme to test innovative methods for Federal Interagency collaboration regarding chemical facility safety and security.5 The Administration feels that, although there have been numerous programmes aimed at reducing the safety and security risks associated with hazardous chemicals, additional measures are needed, by agencies with regulatory authority, to further improve chemical facility safety and security. Recently, at the Seventh Annual Chemical Sector Security Summit (CSSS), the Department of Homeland Security (DHS) weighed in on some important safety and security measures related to tank owners. Several years ago, DHS had decided that its Chemical Facility Anti-Terrorism Standard (CFATS) should apply to certain ‘high-risk’ petrol terminals. This came about as a result of the Buncefield incident. At the CSSS, DHS implied it was going forward with this proposal but only for those inland sites storing fuel mixtures not covered by MTSA. Second, DHS is continuing to move slowly on its Personnel Surety Programme, which would require facilities to provide personal information on employees and unescorted visitors. At the recent CSSS they discussed that the transportation worker identification credential (TWIC) was good from a personnel surety standpoint, but there is still more work to do with ensuring updates

TANK STORAGE • September/October

to the systems they query when granting a TWIC. There was also discussion as to escort rules. Currently they allow one TWIC for five escorted, which helped to make it easier for those instances where an individual could not receive an individual TWIC, or was waiting for one. The escort rule goes against personnel surety, so we might see some changes as it relates to escort rules.6 Personnel safety Thomas Perez was also recently sworn in as the US’s 26th Secretary of Labor. Previously Perez served as assistant Attorney General for Civil Rights at the US Department of Justice. Under the DOL, Occupational Safety and Health Administration (OSHA) has two rules considered significant. First is the Walking Working Surface (WWS) regulation revisions. Slips, trips and falls are common occurrences within general industry. It is also noted that the Bureau of Labor Statistics lists ‘falls’ as one of the major sources for traumatic injury and death cases. As a result, OSHA updated the standard to specifically address fall protection systems and update some of the older WWS rules.7 One issue that tank owners have been watching is in relation to rolling stock and what action OSHA might take to regulate this activity. The status of fall protection requirements for rolling stock, although it was addressed by seeking comment in the proposed rule, will not be finalised later this year. OSHA stated that the proposed rule asked for comment on the issue of rolling stock; therefore, any final action taken for rolling stock will be addressed in a separate proposed rulemaking. We expect to see the final rule on WWS in the fall of 2013. The second item on the agenda is the Injury and Illness Prevention Programme. This

rule is currently in the proposed rule state. The would involve planning, implementing, evaluating and improving processes and activities that protect employee safety and health. Several state OSHA programmes already have similar rules. As a result OSHA has substantial data on reduction in injuries and illnesses from employers who have implemented these rules. An injury and illness prevention programme rule would build on the guidelines, as well as lessons learned, from successful approaches and best practices they have observed. Expect to see the full scope of the proposed rule sometime in 2014.8 These are just a few of the key regulatory actions on the current agenda that tank owners are tracking. The second term of President Obama has an aggressive agenda as it relates to many areas, especially the environment, chemical safety/employee safety and security. References 1 Fingerhut, H. (2013, July 30). Gina McCarthy Focuses on Climate Change in Her First Speech as EPA Chief. Boston Business Journal. Retrieved from http:// www.bizjournals.com/boston/ news/2013/07/30/gina-mccarthyspeaks-at-harvard.html 2 Ibid. 3 Revising Underground Storage Tank Regulations. Regulations. Gov. Retrieved from http:// resources.regulations.gov/public/ custom/jsp/navigation/main.jsp 4 Ibid. 5 Obama, B. (2013, August 1). Executive Order: Improving Chemical Facility Safety and Security. WhiteHouse.Gov. http:// www.whitehouse.gov/the-pressoffice/2013/08/01/executiveorder-improving-chemicalfacility-safety-and-security. 6 Campbell, D. Personal Communication. 2013, July 17. 7 Walking Working Surfaces and Personal Fall Protection Systems (Slips, Trips, and Fall Prevention). Regulations.Gov. Retrieved from http://resources. regulations.gov/public/custom/ jsp/navigation/main.jsp 8 Injury and Illness Prevention Program. Regulations.Gov. Retrieved from http://resources. regulations.gov/public/custom/ jsp/navigation/main.jsp

inspection

Reducing risk while minimising costs Pinnacle Asset Integrity Services explains the unique routine it uses to address the implementation and management of risk based inspection programmes for tanks With the guidance of OSHA’s Process Safety Management (PSM) programme, refineries, chemical and petrochemical facilities are developing more comprehensive and technically advanced Mechanical Integrity (MI) programmes. And within those programmes, atmospheric storage tanks (ASTs) continue to be high priority items due to the extensive time and cost associated with cleaning and inspection. But, as operators continue to build best in class management programmes, tanks are emerging as the frontrunners in terms of cost and risk mitigation. The challenge While tank inspections represent a large cost for facilities, they also present logistical challenges for operators that coordinate hundreds of tanks across thousands of miles. Managing these inspections often requires more strategic planning than those vessels seen in a large, concentrated facility with a full time inspection department. But even in large facilities, the extensive nature of tank inspections often results in grave deficiencies in the area of data management. Instead of utilising data to trend corrosion rates or predict failures, large stacks of documentation are often stored in tank inspection cabinets and only resurrected 15 years later. In terms of risk based inspection (RBI), tanks necessitate a different

approach than pressure vessels and piping. Tank risk must be assessed differently for the following reasons: Consequence of failure • Small leaks may go undetected for months • Leaks are governed by liquid level as opposed to pressure • Environmental effects are generally mitigated due to liquid state fluids and containment dikes • Leak detection and secondary containment systems can alter the consequence of failure • Tank areas are generally much less populated than process areas • Roof, shell and floor failure all result in different impacts. Probability of failure • Tank failure may not occur until zero wall, as pressure is solely governed by liquid level • Multiple tank shells exist that often possess different corrosion allowance values • Properly assessing corrosion rates on the floor requires more advanced inspection (MFE) or more advanced modelling • The roof, shell and floor all pose different damage types and susceptibilities.

The benefits Through the course of several hundreds of tank RBI assessments, Pinnacle has demonstrated a substantial return on investment. While some tanks do in fact assume more aggressive inspection plans from the assessment, on the whole the cost benefits have been outstanding. Overall, the benefits can be summarised by the following: • Inspection savings: an elongation of internal inspection intervals resulted in an average of 1,500% return on investment (ROI) or an average of $40,000 (€30,000) savings per tank • Reduced tank downtime: RBI intervals average 24 years between internal inspections • Improved compliance: while this remains particular to the project, many tanks deemed out of compliance by API 653 were pushed beyond the assessment date. Below is a summary of the results from a recently completed RBI implementation project in a facility with 226 tanks: • RBI plans accelerated the inspection due dates for 33 tanks, deferred the

dates of 182 tanks and left 11 tanks unchanged • The facility had been struggling to bring tank inspections up to date as 46 tanks were out of compliance per API 653 prior to the assessment After conducting an RBI assessment, the number of non-compliant tanks was reduced to 26, therefore saving the facility $7 million in budgeted tank inspections in just the first year • After conducting an extensive assessment to understand the status of the tanks, Pinnacle identified 27 high consequence tanks, two of which were flagged as being out of compliance. A path forward While tanks continue to pose significant concerns, risks and costs to the petrochemical and chemical industries, implementing a sustainable riskbased inspection programme has proven to be extremely effective in mitigating process inefficiencies, leveraging historical data, and utilising modern statistical theory to drive a robust tank MI programme going forward.

September/October 2013 • TANK STORAGE

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September/October 2013 • TANK STORAGE

LNG storage

Demand is growing for LNG as a marine transport fuel, so what does this mean for storage operators? by Amy McLellan The shipping industry is in a slump. Following a new build spree there is a glut of capacity weighing on a market still reeling from the post-2008 contraction in global trade. There is no sign of any near-term relief as the June 2013 report from ratings agency Moody’s maintains the negative outlook it posted in 2011 for the next 12-18 months. High bunker fuel costs and the credit squeeze are only adding to the industry’s woes. The financial pressures are being exacerbated by regulatory requirements to upgrade the fleet to meet ever tighter emissions controls. The maritime industries may not be a big contributor to global greenhouse gas emissions (more than 90% of global commerce is conducted by sea yet maritime shipping produces just 2.7% of the world’s carbon emissions) but they are one of the fastest growing polluters, with maritime’s emissions in the EU alone expected to rise more than 65% between

2010 and 2050 under a ‘business as usual’ scenario. Of course, it is not business as usual as the International Maritime Organisation, the UN agency for shipping and marine pollution, has already deployed a series of emissionscurbing regulations. There are particularly strict measures for sulphur oxide (SOx), nitrogen oxide (NOx) and particulate matter for ships that trade within designated Emission Control Areas (ECAs) in North America, the Baltic Sea, the North Sea and, from January 2014, the US and Caribbean area. As these regulations are ratcheted down (from January 2015 the permitted sulphur content in the Baltic Sea, North Sea and English Channel will drop from 1% to 0.1%) shipowners need to find ways of ensuring their fleet is compliant. Shipowners could comply by switching to low sulphur distillate fuels but there are two problems: there currently is not enough distillate production in the world to meet marine bunker fuel demand (one study suggests an additional 4 million bpd would be needed

TANK STORAGE • September/October

on implementation of the 2020 IMO global sulphur limits) and the cost would be prohibitive, with marine distillates currently carrying a 45% premium over conventional fuel oil. A recent report from the UK’s Chamber of Shipping suggests that using lower sulphur fuel within the ECA from 2015 could add an additional $275 to $350 (€210270) per tonne of fuel used. Another option is to retrofit exhaust gas scrubbing equipment to mitigate emissions, but this can be costly and cumbersome, with compliance not always guaranteed. A final option would be to look at alternative cleaner burning fuels and, of these, liquefied natural gas (LNG) is the most proven and commercially viable. Norway has led the way here with LNG-powered ferries and offshore support vessels, supported by LNG bunkering stations along the Norwegian coast, in operation for 12 years. There are 38 LNG-fulled ships in operation around the world but the vast majority operate in Norwegian waters or close

to Norway’s coast, aided by lower taxes under the Norwegian NOx fund scheme. Appetite for this new fuel is growing: some 30 LNG-fuelled new builds are ordered for delivery within the next two years so, by 2015, the world fleet could tally almost 70 – it is still a tiny proportion of the world’s marine tonnage. Yet many in the maritime world expect this tally to rise rapidly in the coming years. Norwegian classification society DNV, for example, expects the fleet of LNG-fuelled ships to total around 1,000 by 2020. LNG is a clean-burning fuel, emitting 99% less SOx and 85% less NOx, and with 99% less harmful particulates and a 20% reduction in greenhouse gases from the vessel stack when compared to high sulphur fuel oil, it could also help futureproof against other regulatory targets. And there is plenty of LNG around; shale drilling has created a glut of cheap gas in North America, coal seam gas is booming in Australia while giant gas fields off the coast of East Africa are already being measured up to supply LNG

LNG storage to the Far East. This does not mean LNG is cheap, however. As one shipping pundit points out, why would anyone sell cheap gas to shipowners when you can sell it for $14.50 per Mmbtu to Japan? There will need to be significant investment to either retrofit existing vessels – and there is thought to be a limited retrofit market due to the limited number of suitable engines and the space requirements of the LNG tanks – or build new tonnage to run on LNG. Shipowners and designers contacted for this article were reluctant to talk price tags but neither option is going to be cheap. Rough estimates suggest €12-€16 million for a retrofit, while new build costs will depend on type of vessel and current rates in the shipbuilding industry. Studies from classification societies suggest the investment will payback in relatively short time frames, particularly for small- to medium-scale vessels mainly operating inside ECAs post-2015. One study from Germanybased classification society Germanischer Lloyd suggests that smaller container vessels with 65% ECA exposure could achieve payback on an LNG system within two years, and these are assets that typically have a 25-30 year life.

certainty on the business.’ As Sames points out, because initial throughputs will be low, the fuel will be expensive, thereby deterring uptake from other shipowners; LNG pricing will be the main factor in the penetration of the new fuel. The solution is for early adopters to shoulder the higher initial investment and fuel costs to support the infrastructure investment. These early adopters are typically to be found in niche markets where refuelling is less of a risk like short sea shipping, inland shipping and LNG carriage. Shell, for example,

under an hour. The LNG comes from AGA AB’s LNG terminal in Nynäshamn, Sweden’s largest LNG terminal with storage capacity of 20,000m3. Viking Grace is powered by Wärtsilä’s dual-fuel technology allowing ship owners to switch between LNG and conventional fuel. ‘The right technology at this stage, and probably for the next decade, is the dual-fuel engine,’ says Giulio Tirelli, director of portfolio and applications developments at Wärtsilä Ship Power in Switzerland. ‘as the complete infrastructure is not available all around the world, it gives

engines, with the intention of mainly burning gas. Deep sea market slower to develop But what of the potential penetration of LNG beyond these niche markets? In addition to the refuelling challenges, ocean going ships present a more complex technological challenge. ‘For deep sea vessels, the quantities [of LNG] required are remarkable and that means there is a bigger impact on the vessel’s transportation capacity and

Shell launched the first 100% LNG powered barge at the beginning of this year Chicken and egg A new fuel, however, means a new refuelling infrastructure. As we have seen in the road transport sector, with electric cars and LNG-powered trucks, this kind of investment does not come quickly or easily. ‘It’s a classic chicken and egg situation,’ says Pierre Sames, senior VP of research and rule development at Germanischer Lloyd. ‘Shipowners will not go for these vessels without certainty on the fuel supply and supply companies will not build the infrastructure without

recently launched its first 100% LNG powered barge, the first of two to be chartered by the oil major for use on the Rhine. Ferries are another popular niche. This year the passenger ferry Viking Grace, billed as the world’s most environmentally friendly big passenger ship, started working the TurkuStockholm route, with refuelling handled by LNG bunkering supply vessel Seagas, the first of its kind. Seagas supplies 60-70 tonnes of LNG when the Viking liner is moored at Stadsgården through a shipto-ship process that takes just

owners confidence to have that flexibility and something they already know.’ In the LNG carrier market, there are signs of readiness to invest in new builds with dual-fuel capabilities. This year Hudong Zhonghua Shipbuilding won a $1.5 billion order to build six 174,000m3 LNG tankers, which will take LNG from the Gladstone LNG plant in Australia to import terminals in China. Steel cutting on the first ship will be in January 2014 with delivery of the final ship due in Q4 2017. The ships will run on dual-fuel

on the ship’s design principles,’ says Tirelli, who expects to see these bigger vessels make a much more tentative move towards the new fuel. An August 2012 report from Lloyd’s Register makes clear that LNG pricing and the comparable prices of competing fuels will be the key decider in how quickly, and to what extent, LNG becomes a widely used fuel for deep sea shipping. The London classification society churned through a series of scenarios, none of which indicate a significant switch

September/October 2013 • TANK STORAGE

LNG storage to LNG within a ten year time frame; the high case projected 1,963 LNG-fuelled new builds by 2025 while the low case, in which LNG prices are high, was just 13 new builds. The base case of 653 new builds on deep sea routes represents just 4.2% of global new build delivery between 2012 and 2025, consuming 24 million tonnes of LNG annually. These ships are most likely to be containerships, cruise vessels or oil tankers. The infrastructure investment challenge Bunkering will be key to all of this. While large LNG terminals are the natural home of the early LNG bunker services, and will be key to supplying LNG to bunker stations, an effective refuelling service will require small-scale LNG distribution across shipping routes. At present, LNG bunkering infrastructure is confined to a few ports – Gothenburg and Nynashamn in Sweden, Zeebrugge in Belgium, Rotterdam in the Netherlands and Singapore – but other major ports, such as Antwerp, are exploring and developing bunker infrastructure as part of their strategic plans. A report from the Danish Maritime Authority (DMA) highlights the scale of the infrastructure challenge ahead. According to the DMA’s investigations, more than 40 small scale LNG terminals will have to be established through the

LNG is a clean-burning fuel, emitting 99% less SOx and 85% less NOx, and with 99% less harmful particulates and a 20% reduction in greenhouse gases from the vessel stack when compared to high sulphur fuel oil North Sea, English Channel and Baltic Sea ECA in 2015, complemented by mediumsized terminals, tank trucks and bunker vessels. As LNG pricing will be so critical to the development of this market, the DMA report says the price tag for LNG infrastructure investments must be based on an average internal rate of return of less than 12% in order to keep prices competitive. Whether that will be appetising to terminal and port investors given the inherent uncertainty and risk of launching a new fuel infrastructure for a conservative maritime industry remains to be seen. To help stimulate this investment, the EC has set aside €2.1 billion to equip 139 seaports and inland ports – about 10% of all ports – with LNG

TANK STORAGE • September/October

bunker stations by 2025. Again, there are some early adopters paving the way. In the US, global LNG provider Shell announced plans this March to build two small-scale liquefaction units to supply two new LNG transport corridors, which, pending regulatory approvals, it hopes to have operational within three years (it is also working on an LNG transport corridor in Alberta, Canada). In the Great Lakes Corridor, Shell will build a small-scale (250,000 tonnes a year) liquefaction unit in Ontario to supply all five Great Lakes, their bordering US states and Canadian provinces and the St Lawrence Seaway. Its first customer is expected to be Ohio-based bulk carrier company Interlake Steamship, which has already started converting its fleet. In the Gulf Coast Corridor, Shell plans to install a similar small-scale liquefaction unit at its Geismar Chemicals facility in Louisiana, which will then supply LNG along the Mississippi River, the IntraCoastal Waterway and to the offshore Gulf of Mexico. Martin Midstream Partners will provide the terminalling, storage, transportation and distribution of LNG with Edison

Chouest Offshore barging the LNG from the Geismar plant to Port Fourchon, Louisiana, where it will be bunkered into customer vessels. Port Fourchon will also be the location for an LNG bunkering facility being developed by Harvey Gulf International Marine, which also runs a fleet of six LNGfuelled offshore support vessels (three of which are chartered by Shell). It is understood the New Orleans company has invested $400 million in the work boats and the fuelling facility, which will house two separate fuel docks, each capable of storing 270,000 gallons of LNG (just over 1,000m3). The facility will supply the ships supporting the Gulf oil and gas industry as well as road vehicles that run on LNG. This marine-land configuration is believed by many analysts to be the most cost-effective way to develop an economic model LNG distribution, as are clustered developments in regional ports. Rotterdam break bulk Shell is keen to develop a scalable market in northern Europe. ‘This will be based on the development of LNG

LNG storage infrastructure at key strategic locations and targeting key marine sectors such as barges, tugs, ferries, cruisers and offshore supply vessels as a first step in building a marine LNG business,’ says a spokesman for the supermajor. A key component of Shell’s LNG vision is collaboration between terminal owner Vopak and Dutch gas company Gasunie to build an LNG break bulk terminal. Shell will be the launch customer for the new open access terminal, which will be built at Maasvlakte near Rotterdam, adjacent to Vopak and Gasunie’s Gate LNG import terminal, which opened in 2011 with storage capacity of 540,000m3. The two will be connected by pipeline, with the new terminal breaking down the LNG into smaller quantities (5020,000m3) for distribution to marine bunkering and truck fuelling stations – again the marine-land configuration.

The infrastructure will involve LNG break bulk vessels of 7,500-20,000m2, LNG bunker barges from 1,000-10,000m3 and trucks of 50m3. The LNG Break Bulk terminal is expected to be operational at the end of 2014, subject to obtaining the relevant approvals. Vopak is also undertaking feasibility studies for other LNG bunkering facilities in the Baltic and European area. ‘We are positioning for it to be the fuel of the future,’ says a spokesman for the Rotterdamheadquartered company. Meanwhile Deen Shipping, which in 2011 launched the world’s first LNG fuelled tanker, with the chemical tanker Argonon working Europe’s inland waterways, has joined forces with Dutch shipbuilder Veka to develop an inland LNG transport corridor. The first step is an innovative ship design for an inland LNG carrier to help develop an inland LNG bunker service.

LNG break bulk: Vopak is positioning for LNG as a fuel of the future

Regulatory confusion But just as it seems LNG is gaining traction as a marine fuel, the regulatory drive to convert to this cleaner fuel has lost some of its urgency. In May the IMO announced it would push back the implementation of Tier III standards on NOx emissions (which applies to North America and the US Caribbean Sea area) from January 2016 to January 2021. ‘This has created uncertainty for the industry,’ reports Sames. ‘It comes just as the issue was gaining real momentum with a number of decisions about new orders pending driven by the anticipation of the regulatory challenge coming from the IMO.’ ‘This uncertainty is likely to stem the flow of new orders for LNG-fuelled vessels,’ says Sames. ‘The investment required to develop the infrastructure was already

weighing on this market and in this economic climate, when shipowners don’t have much money to spend, I think we can expect to see some of those new orders placed on hold until there’s more certainty.’ Regulatory bottleneck And, on the bunkering side, it is worth pointing out that terminal developers will have to grapple with more than just financial and commercial issues. There will also be complex regulatory, safety and operational issues to consider, particularly for the siting of LNG facilities and new LNG ship-to-ship refuelling services. This could prove a significant bottleneck as there are no common operational standards for LNG bunkering operations, yet the clock is swiftly ticking down to 2015. It is also worth pointing out that LNG’s future as an alternative marine fuel is by no means assured. Sweden’s Stena Line, for example, is trialling methanol at the Port of Gothenburg. This is an interesting development because, as Lloyd’s Register bunker experts point out, the global production capacity of methanol is 90 million tonnes a year but demand is as low as 45 million tonnes, creating a supply-side opportunity. Longer term, trials are underway on algae-derived biodiesel as a marine fuel. A number of companies are also experimenting with windpower as an economical and emissionfree method of powering modern vessels, by which point the maritime industry would have come full circle. Even so, for some, LNG is the most obvious bridging fuel to a greener future. ‘The marine industry has moved from sail, to coal, to diesel and the next step will be LNG,’ says Tirelli. ‘It’s a similar kind of transformation.’

September/October 2013 • TANK STORAGE

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LNG storage

Changing everything Viewed as a potential windfall for the tank storage and distribution sector, new secretary of the US Department of Energy (DoE), Ernest Moniz, made one of his first major acts in office: the granting of an export license to the Texas’ Freeport LNG terminal – owned in part by Conoco Phillips. This made it only the second facility approved to ship gas to nonFree Trade Agreement (FTA) countries. Two years ago, the DoE authorised export of LNG to non-FTA countries by Houston’s Cheniere Energy for shipment of up to 2.2 billion cubic feet per day from its Sabine Pass LNG terminal in Louisiana. ‘With former Secretary [Steven] Chu it was renewables, renewable, renewables,’ says James Tramuto, VP of Southwestern Energy in Arkansas, a gas producer who recently presented at the Energy Information Administration’s June summit on natural gas development. ‘While at Massachusetts Institute of Technology, Secretary Moniz authored studies on natural gas and the economic impacts of exports.’ The DoE’s willingness to allow export of LNG, even without free trade agreements in place is major news for buyers as well. Japan, for instance, is focused on shifting its energy security away from nuclear in the wake of Fukushima and currently has the biggest LNG storage tank under construction. For Japan, which does not have an FTA with the US, the

As the US Department of Energy makes clear its intention to approve several licenses for the export of LNG, billions of dollars in terminal and pipeline capacity development is at play looking to change the globe’s energy pricing, storage and distribution landscape DoE approval in May for the Freeport project has increased the reality of LNG imports, not just from a new supply source but also at a new pricing index – Henry Hub gas prices. With 19 pending applications for LNG export licenses, Moniz has indicated the DoE will move quickly, but cautiously as no other applications will go forward until he has personally reviewed the criteria that the department is using to determine whether LNG exports are in the national interest. Moniz stated that the department would not perform new studies, but would review the data underlying its macroeconomic analysis and implied that the national interest criteria – its own domestic supply and price security – could be altered. Oregon LNG, a proposed $6.5 billion (€4.9 billion) LNG export terminal in Oregon and its recent filing for a license to export LNG to non-free trade countries is crucial to the project’s viability. ‘We will have to be able to sell LNG to non-FTA countries in the Pacific Rim,’ says Peter Hanson, CEO of Oregon LNG. The DoE indicated in June that it will expedite the

TANK STORAGE • September/October

application process for LNG export facilities wishing to reach non-FTA markets, and President Obama’s recent climate change speech expressed the desire to create a global LNG market. ‘I believe these licenses will be forthcoming. We expect to receive ours by the end of the year,’ Hanson adds. Competitive development There has been a frenzy of activity in developing the infrastructure necessary to support high production levels as well as to enable export of natural gas to the world market (where natural gas fetches a higher price than in the supply-rich US), especially in the Pacific Northwest. Hanson says the project’s latest filing with the Federal Energy Regulatory Commission achieves a major milestone in getting the project built. ‘My take is that these projects are not viable unless they have export agreements with non-FTA companies,’ he says. ‘Canadian gas does not have a market in the US anymore and is getting squeezed out of the US market because there is more gas in the Rocky Mountains to supply the market liquid Henry

Hub sales point in Oklahoma.’ Oregon LNG is being built from the ground up to try to help move some of this stranded Alberta gas. It is a greenfield site where all equipment and storage facilities have to be brought in or built new. But other companies, like Cheniere Energy, have focused on brownfield conversion – LNG import terminals which were constructed before the shale boom and have been left stranded. So unlike the greenfield projects proposed in the Northwest – Oregon LNG and Exxon’s Kitimat terminal in British Columbia – the Sabine pass does not have to build a pipeline, a tank farm, a plant or a terminal. It even has two tugs to guide LNG tankers in and out. Some have speculated that this makes brownfield conversion projects more viable than totally new facilities. These brownfield sites, like Sabine Pass, will have a major advantage in terms of capital expenditures over proposed terminals like Oregon LNG, and investors should view these projects with more caution, believe some analysts. Hanson, however, disagrees. ‘The import terminals are de facto owned, so they still have to be paid for by the entity who plans to convert them,’ he says. ‘While it is true that existing terminals exiting equipment including tanks and these are highly technical specialised tanks, our tanks will be open cup stainless steel tanks specially insulated with

LNG storage purlite, sitting inside a concrete bunker with 42 million gallons capacity. But the majority of the costs involve the installation of the liquefaction technology.’ Another characteristic that makes Northwest export terminals competitive is the Pacific locale. ‘We can get our gas to Asian markets for about $2 to $3 cheaper per million BTUs than facilities in the Gulf of Mexico,’ Hanson says. ‘So if the market is 500 million BTUs annually, that means that we have a $1 to $1.5 billion sales advantage.’ Connectivity, regulatory issues The southwest has put in 1,859 miles of pipeline just to increase the flows of gas to end users like industrial facilities, power plants and LNG export terminals. ‘Any time you go into a new play there is going to be a lack of infrastructure and a delay in the marketplace,’ Tramuto says. There are two components that need to evolve further, the first is the fundamental gathering of gas and getting into mainline pipe. Like the terminals that need to get gas to port facilities, the north east wants to convert a lot of its buildings that run on natural gas, because of the pricing and environmental benefits, but there is a lack of market area storage. The second is more pipeline connectivity and more storage closer to the end user markets, because often the demands will exceed the pipeline capacity. ‘For a power generator for instance, the load might go up quite considerably over the course of a day or even a week,’ Tramuto adds. As most producers deliver to liquid sales points through firm transportation agreements, the market must take the firm supply from these points. Therefore, additional mainline pipelines and market area storage infrastructure is needed to serve the growing load which results from incremental power generation, industrial, chemical and commercial

loads. ‘Storage capacity is mostly needed by the end users,’ Tramuto continues. ‘A lot of producers share the same philosophy – have firm transport agreements through interstate pipelines to liquid sales points so gas can flow where it needs to.’ Hanson agrees that LNG export terminals are in need of a scale up in regional pipeline networks as well: ‘Plans for Oregon LNG include an affiliated interstate natural gas pipeline that will interconnect with and bolster the capacity of existing pipeline facilities, and ‘would enable worldwide shipment of high-value natural gas produced in Canada and is already earmarked for export.’ The size and scope of these facilities is phenomenal. If constructed, Oregon LNG will represent the largest privately funded development in Oregon’s history. The project is anticipated to result in $6.3 billion in direct spending during construction, providing the state with high-value jobs and tax revenue. Facilities of this size and scope are not permitted very often, so there are a lot of conflicting provisions and debate over who has the authority and the permitting jurisdiction. This has slowed the development of natural gas pipeline, storage and export capacity. All of the parties need to sit at the table together and find creative solutions to get pipe and storage in place as quickly as possible. Innovative regulatory solutions at state and national level are needed to supply incentives to put the needed pipeline and market area storage and infrastructure into place. ‘Pipeline connectors are not going to come in unless there are contractual agreements,’ Tramuto says. Investors, banks and the build out Much of the work from construction projects that get the greenlight will be awarded

in the next two years. That is what Chicago Bridge and Iron executives told investors at a Credit Suisse conference in June, adding that ‘more than $70 billion is lined up globally for LNG in 2014 and 2015.’ But analysts are cautious that Moniz and company will proceed cautiously with approving more LNG export licenses and CB&I shares have retreated recently off from a record $64.89 in May. There has been some speculation that there is not enough engineering and construction expertise to match the speed at which some of these projects want to move, with a limited number of firms possessing technical expertise to build liquefaction facilities and the highly specialised LNG storage tanks. With few opportunities for the public to invest directly in the terminals so far, high profile hedge funds like Berkshire Hathaway and others have been buying Chicago Bridge and Iron – seen as the industry leader in building LNG facilities – and other companies charged with building them. Engineering firms who have the ability to build LNG export terminals and storage capacity are in high demand around the globe and share prices are showing it. In Canada, KBR won frontend engineering and design contracts for two new plants in British Columbia: the Kitimat terminal – being built by Chevron and Apache – and one backed by Malaysia’s Petronas. ExxonMobil just became the latest to seek a British Columbia LNG export license. In Australia – the biggest market for LNG plants so far – work went to various firms including Bechtel, Jacobs Engineering, KBR and Fluor. Yet opportunities appear to be drying up there because of cost over-runs and the looming North American competition. KBR’s shares have gained 2.25% in the last three trading sessions, and 4.94% in the last

three months. Moreover, the stock is currently trading near its 52-week high of $36.69. Jacobs Engineering’s shares have gained 0.98% in the last three trading sessions. The stock is currently hovering around its 52-week high of $57.97. Fluor’s share price is up over $12 since July of 2012. While the stock market has been buying shares involved in building LNG capacity, banks have been stepping in as well to finance construction of LNG terminals. The owner of Sabine Pass, Cheniere Energy, has received a needed $5.9 billion in financing to build trains 3 and 4 in Louisiana and intends to start construction immediately. The facility, also being built by Bechtel, has closed on credit facilities totalling $5.9 billion, including a Term Loan A credit facility of $4.4 billion with a syndicate of 27 banks and financial institutions, a company statement said. It has also closed three additional credit facilities with Republic of Korea financial institutions – the Export-Import Bank of Korea and Korea Trade Insurance – for $1.5 billion. The credit facilities mature in May 2020. Freeport LNG Expansion recently revealed it will try to restructure its debt and raise more capital to finance an $11 billion natural gas export facility in Texas that could handle as much as 2.1 billion cubic feet of gas per day when it is completed in 2019. ‘If these make economic sense, they will get financed. But only the good ones with the right export licenses and contracts,’ Tramuto says. ‘Meaning firm transportation and offtake agreements as well as long-term contracts with LNG shippers.’ Oregon LNG, Southwestern and the stock market are betting billions that these facilities with the backing of the federal government will change the global energy distribution landscape permanently.

September/October 2013 • TANK STORAGE

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safety There are many reasons why a company may wish to enhance their safety culture: regulatory ‘encouragement’, an effort to control costs through the reduction of injuries and incidents or it may be that the safety programme does not meet management expectations. Whatever the reason, moving an organisation to a more mature health and safety culture will not happen overnight and it cannot happen without substantial effort. Step changes can occur quickly, though, with a strong management commitment and an unwavering and highly visible drive to improve. Tangible, measureable improvements will begin to appear within weeks of the employee group realising this is not the latest version of a safety programme, that this is who the organisation intends to be. The most difficult step will be convincing employees you are serious. Once that is accomplished, your efforts will become substantially easier. In 1996, when Unocal was acquired by Tosco, it fell to the local management team to merge four northern Californian terminals, each with vastly different safety cultures ranging from nonexistent to fully developed and mature, into a group that worked and operated with one set of safety values. ‘The creation of a strong safety culture begins with commitment. Half hearted attempts, statements and empty policies are a death knell to this type of effort. The manager and supervisors have to understand the value of the change and be fully committed. The first step to be made as we began to merge the facilities was to spend time outside, in the field, looking at the condition of the assets, the equipment being used, the approach to repairs, the quality of training and the

Developing a safety culture A terminal manager, who worked at Tosco for many years, discusses how he changed attitudes to safety at four terminals in northern California attitude of the employees. Operators and mechanics were invited to join us. Through this process people were continually asked what they thought of various ideas. If they did not think much of one, they were asked if they would be willing to try it ‘just for a while’. At the end of the first tour several items were discussed including the use of plastic buckets on the refined products truck rack and in the tank farms, missing multi-gas monitors and the lack of two way radios. There were a variety of opinions on each of these subjects. In short, it was the ’we haven’t had any problems so I don’t know why we should needlessly spend money’ syndrome. By demonstrating that a spark ignites a flammable vapour cloud, and highlighting the fact that vapour clouds exist at a truck rack during a petrol spill, the need for gas monitors was understood. Personnel did not see any value in radios until they realised now they did not have to walk across 10 acres looking for someone, they could use a radio. And they

TANK STORAGE • September/October

recognised the importance of having a radio rated for the area classification when they saw how easily the vapour cloud was ignited. During visits with the operators on the tours, several things were accomplished. Besides getting to know them, they began to realise it was no longer business as usual. It was also possible to identify the informal leaders. Each of these items holds keys to success. Employees need to be clear on the vision so everyone can pull in the same direction. Knowing the informal leaders and how they think allowed us to anticipate possible pushback. The informal leaders must support the change. Without their assistance there will be an undermining at work that will slow or stop the process. Under the most unfortunate circumstances this will lead to disciplinary action and possible termination. With their assistance, however, success comes quickly. To begin to instill a sense of pride and professionalism in the group Tosco moved to company supplied uniforms. We ordered what

the operators believed they needed and in a style they selected. By letting them chose and decide, it became their programme. The only guidelines were the uniforms needed to protect them against the hazards of the job and they needed to have a sufficient number so laundering would not be a concern. Wearing clean, sharp, professional uniforms instilled the sense of pride that was needed. Having pride at the worksite is a critical step in creating a safe worksite. Next, a safety footwear and eyewear programme was rolled out. There was pushback on this from some but after explaining that the employer was picking up the cost, complaints disappeared. The footwear had the typical requirements - defined heel, over the ankle support, uppers made of non-porous material - and we explained what each of these features did for the employee. When the footwear was presented, it was by an experienced professional who asked questions like: ‘Have you ever slipped while climbing up a ladder on the side of a tank?’ ’Have you twisted your ankle while walking through a tank farm?’ ‘Have you walked through spilled product?’ The process towards acceptance was guided through education and not by mandating change. Change would eventually come but administering a health and safety programme is always easier and more successful when employees embrace it, not when they fight it. A set of truck load rack rules were established at each of the facilities, using a working group of field employees alongside a health and safety professional who was skilled at developing a consensus. The group established a set of practical truck rack regulations that were consistent with industry best practices. This

safety was done through education and reviews of policies and procedures used by peer companies. What was effective when developing the truck rack rules was a demonstration of how a static discharge could ignite petrol vapours. The demonstration was followed by a video of petrol being loaded into a tank truck. The video was filmed inside the tank compartment and captured a static light show worthy of the Northern Lights. When it came to discussing the importance of inspections and training the management used a two-fold approach. Firstly, it scheduled fire extinguisher and first aid training early on in the process and we used on-site facilities. There had been no inspection or servicing programme in place at some of the locations. When three of the extinguishers failed to work, bandages failed to adhere and eye wash bottles were found to be expired, the group began to grasp the importance of regular maintenance and inspections as their safety was clearly at risk. Tosco also put together a safety committee that consisted of one supervisor and several hourly employees. Health and safety staff were a resource, not members and not owners of the committee. The committee president was an hourly worker but to assure the committee was successful, the supervisor ‘graciously’ offered to assist in all ways possible. Minutes were distributed to the entire work force after each meeting and the recommendations of the committee became priorities. One of the responsibilities of the safety committee was to conduct facility inspections. They selected what to inspect, did so with key operations personnel and a supervisor, created their lists of substandard conditions and then, along with facility

management, prioritised the repair list. The supervisor responsible for those assets was then responsible for addressing them and reporting back to the safety committee. Another key element critical in the development of a safety culture is an intolerance for neglected or broken equipment, in particular equipment that which is part of a safety system. In this case several of the facilities had failed tank level alarms, lacked thermal relief on lines and among other things, operated truck racks with safety systems that had been bypassed by drivers. Once broken equipment had been highlighted, procedures were put in place while repairs were

Often it comes down to training and understanding. To assist drivers in understanding expectations, and the hazards of the products they were handling, the safety committee designed a driver certification process. This requires the driver to demonstrate proficiency in loading a truck. After a couple of companies tried to slide a new employee through the certification process without any training and were subsequently held accountable, the problem disappeared. The terminals gradually began to get a reputation with contractors and carriers that it was serious but also reasonable. If anyone needed assistance, all they had to do

The single most important thing was to include employees in all of the decision making processes made. The procedures used were developed by the field personnel followed by a management review. They defined the hazard, developed an acceptable means to manage the hazard and then implemented it. Through this it was made clear that the purpose for the temporary procedure is to assure neither they, the contractors or the community was put at risk or injured. Once repaired it was expected to remain that way. Drivers found bypassing safety systems were permanently suspended from the truck rack. Carriers with repeated driver offences were suspended for a period of time. They cried loud and long, as did the marketing department, but the expectations were clear and it did not take long for the problem to self-correct. Truck drivers can be a constant source of frustration at a refined products terminal.

was ask an operator because it had become his terminal. On a monthly basis Tosco provided articles written for drivers and contractors that explained the hazards in the industry. Topics included static, plastic buckets, the effects of fatigue, the importance of slow start and stop functions on meters and the effect of hydraulic hammer on facility piping. Through knowledge the company gained additional compliance and then ownership by everyone, not just company personnel. Outside carriers and contractors were beginning to realise they were also part of the programme and began holding each other responsible for their work habits. They were caring for the facility as we were because they were beginning to more fully understand the hazards of what they were working with and the potential for injury. As employees became further engaged the safety

programme was broadened to include invitations to the Sacramento Fire Department and their mutual aid companies to train at one of the terminals. AFFF was supplied for hands-on training, as well as an out of service EFR tank to drill with. Through this process the fire preplan could be tested. Terminal employees received quality training in incident response and the SFD identified critical updates that needed to be made to their preplan. All of this contributed to employee ownership of the terminal and a robust health and safety programme that was shared with contractors. It was a lot of work and took a lot of time but what began as a collection of terminals with unacceptable risks and exposures evolved into a set of terminals with a stellar record and quality processes. The single most important thing was to include employees in all of the decision making processes and, once a decision was made, the management followed through. Next, training was provided to ensure employees recognised the hazards. Last, the management made it clear to employees and contractors that if they do not understand a process or a procedure, or see a hazard that has not been addressed, they are expected to do something about it. It was management’s expectation that a job was to be stopped until all are satisfied that all the hazards have been addressed. What was continually discussed is these were not simply Tosco’s terminals; they were the employee’s terminals. Over the course of 18 months the company was successful in moving the culture at the terminals from a minimalist attitude concerning safety to one that was based on knowledge, ownership and accountability.

September/October 2013 • TANK STORAGE

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September/October 2013 â&#x20AC;˘ TANK STORAGE

gauging

Update on Buncefield recommendations It would be all too easy to specify a SIL3 rating for all overfill protection systems. This is unnecessary and risks missing the real lessons from Buncefield and other similar incidents. An analysis of the appropriate SIL rating per tank is necessary. More important is the need to separate the overfill sensor and the logic solver in an overfill protection system from the tank gauging system

The consequences from the series of explosions which took place on 11 December 2005 at the Buncefield oil storage depot in Hertfordshire, UK, continue to be felt more than six years after the event happened. In March 2012, a controlled explosion was carried out at the RAF Spadeadam test site in Cumbria, UK to try to understand the biggest blast in Europe’s peacetime history, which left the depot burning for four days. The theory now is that bushes and trees lining the site may have helped create a supersonic flame1. However, if some lessons are still to be learned from Buncefield, others are extremely clear. Among them is the importance of level control and gauging for storage tanks: a lesson tragically reaffirmed by an explosion caused by overfilling in Bayamon, near San Juan, Puerto Rico in 2009. Together with similar incidents that happened prior to Buncefield – for example at Longford, Australia and Texas City, US – perceptions of overfill prevention have now been changed. No longer seen as simply an environmental protection issue, overfill protection is now firmly established as

TANK STORAGE • September/October

a question of safety. The five firms held responsible for Buncefield were fined £10 million (€11.6 million). The need for the appropriate Safety Integrity Level Nowhere is this focus on safety clearer than in the recommendations from the Major Incident Investigation Board (MIIB2 established after Buncefield and the regulations to which it refers. At the heart of them is the requirement to conduct a Hazard and Operability (HAZOP) analysis and establish Safety Integrity Level (SIL) requirements for the overfill prevention system. The start of the very first of the Buncefield recommendations reads: The Competent Authority and operators of Buncefieldtype sites should develop and agree a common methodology to determine Safety Integrity Level (SIL) requirements for overfill prevention systems3. What is an appropriate SIL? Given that the focus and the potential for extensive damage, and even loss of life from overfill explosions is the over-riding concern, it is not surprising to

see vendors now offering tank gauging systems boasting SIL3 safety accreditation for overfill prevention. This is correct: tank gauging should be both SIL rated and independently accredited. But it is not the complete picture. Establishing an overfill protection loop in a terminal with a SIL3 rating is entirely unnecessary and risks missing the true lessons from Buncefield and other major incidents. It is true that in, the past, the risk of overfill in tank farms has often been understated, with hazard analysis teams disregarding it as a ‘credible event’. The Buncefield explosion and others should have corrected that misconception. Nevertheless, filling a tank is a slow process and the possibilities for an operator or automatic switch to prevent overfilling are extensive. Overfilling is, in fact, easily preventable. Filling should be monitored closely, accurately and, with the right equipment, overfills can be easily detected and prevented. Moreover, there are few circumstances in a terminal where it is beneficial to allow high filling levels to propagate. Consequently, notwithstanding the seriousness of the handful of serious

gauging incidents that have occurred over the last 15 years, overfilling incidents are an exception. SIL expresses the reduction in risk provided by a safety function (such as an overfill prevention system). SIL2 reflects a risk reduction factor of between 100 and 1,000. Given the relatively low risk of overfilling at the outset, such a risk reduction is more than adequate. Actually, on perhaps 80% of all tanks installed worldwide, a lower rated system (SIL1) would be sufficient. There are certainly no tanks for which a reasonable HAZOP study could determine if SIL3 was required except for some cryogenic applications. Furthermore, implementing SIL3 is not just unnecessary; it is expensive. To achieve the further risk reduction promised by SIL3, the entire overfill loop must be accredited to that level, not just the level gauge, requiring much more expensive kit and periodic testing. Most important of all, there is no evidence that any of the major events to date would

have been prevented by an increase to SIL3. Buncefield, for example, was not caused by an insufficient SIL rating on the safety loop, but by a level gauge that had not been working properly for months and an overfill switch that was not working at all, following maintenance that removed a vital component a year before. The separation principle is key The dangers from focusing on the level gauge’s SIL rating are not just financial, however. There is a real risk of overlooking the causes of accidents and the correct way to address these, and preventing them from recurring. The recommendations and regulations are clear about both. They are based on fundamental principles of resilient overfill protection, such as redundancy and segregation. Again, this is found early and clearly in the Buncefield recommendations. Recommendation 3 stipulates that, to protect against 1

Concept

Overall scope definition

Hazard and risk analysis

Overall safety requirements

Allocation of safety requirements to designated safety related systems

Overall planning

Overall Overall Overall 6 operation & 7 validation 8 installation & comminssioning maintenance planning planning planning

overfill, operators should fit an automatic overfill prevention system ‘that is physically and electrically separate and independent from the tank gauging system’. In this, the recommendations reflect the well-established separation principle for safety system design. This is captured in IEC 61508 for the process industries generally, and, for tank farms specifically, in the API’s recommended practice API RP 2350. Both stipulate that the overfill sensor and the logic solver in an overfill protection system be independent from the tank gauging system. The purpose of this separation is to safeguard against common cause failures, such as physical damage, that could simultaneously disable the level control and automatic overfill protection if, for example, housed in a single unit or dependent on shared wiring. Without this separation, certification to a higher SIL rating is needed (and, again, that should apply to the whole loop and will add to the costs).

Safety related systems E/E/PES Realization (see E/E/ PES safety life cycle)

Safety related systems other 10 technologies

Realization

External risk reduction facilities Realization

Overall installation

13 Overall safety validation 14

Overall operation & maintenance

Decommisioning

Back to appropriate overall safety life cycle phase

Overall modification & retrofit

This chart shows the entire process from the concept phase to decommissioning. The importance of human capital and the skills within the workforce can be seen throughout the lifecycle: in the safety system’s realisation and implementation (steps 9 and 10), for example; and in its validation and maintenance (steps 13 and 14); and even in decommissioning. However, the influence of the workforce is vital from the beginning – particularly in conducting the initial HAZOP and establishing safety requirements (steps 3 and 4). Without an in-depth understanding of the process at the outset, the system will inevitably be flawed. Focusing just on the SIL rating ignores this and results in an unbalanced and inadequate safety layer that can, and will, not be maintained over time. Regardless of the equipment installed, unless safety begins with the qualifications of the people, the chances are that it will end in failure

The use of different technologies Physical redundancy is not enough, however. As the Oil Industry Safety Directorate (OISD) in India recognises in Guideline 1524, the level gauging and overfill protection systems should not just be physically separate and independent but preferably also use different technologies. As outlined in standard IEC 61508, two failure modes are possible for safety related modules such as overfill protection systems: random hardware failures and systematic failures. Random hardware failures cannot be avoided; hardware components can and will fail over time. However, being random, it is unlikely that the same hardware failure will occur in both the level gauge sensor and safety gauge simultaneously. Physical separation is therefore sufficient to guard against these failure modes, as failure in one system will be picked up from the readings of the other. Unfortunately just 10% of all failures are random hardware faults, the rest are systematic failures. Systematic failures are the result of faults unintentionally designed into the safety function. These could be the result of errors in establishing the safety requirements or the derived specifications, or in the design, manufacture, installation or operation of the hardware and software. The fault in these cases is not random but the consequence of an inherent weakness. As a result, two identical devices operating in similar conditions at the same time – such as the main gauge and (identical) safety sensor in the same tank – are more likely to fail simultaneously due to circumstances exposing that weakness. In that case, failures may go undetected and overfills can occur. Of course, there are

September/October 2013 • TANK STORAGE

gauging circumstances in which plants are restricted in their choice of technology and applications. Viscous crude oils may not be well suited to measurement by servo tank gauges, which operate on the principle of displacement measurement. At the other end, extremely light products may see radar gauges struggle with accurate measurement due to the vapour space. In the majority of applications, however, either one can be used. Again, this is recognised in the regulation API RP 2350 Clause 1.3.4 (f), which indicates that independent level detectors can be servo level gauges or radar level gauges (or even a hydrostatic level gauging system). Using two distinct technologies for level reading provides greater availability of readings, since they can be compared, but also provides vital protection against common cause failures and systematic failures. Adherence to these two

principles – separation and technological diversification – ensures that the SIL accreditation of the safety system provides genuine protection. Ignoring them – for example, by combining both gauging and safety level measurement in a single device using the same technology for both – leaves tank farms exposed to common cause failures, no matter how high the SIL accreditation. Safety is more than equipment There is a final reason to regret over-emphasis on level gauging SIL: it threatens to provide a false sense of security. As Buncefield made clear, and as the regulations recognise, safety is about much more than the equipment’s design. For a start, the SIL rating may decline over time. Even when excellently maintained, hardware is still prone to deterioration, particularly

when it is subject to harsh environments and extremes in temperature (such as on a tank roof). An overfill prevention system with a SIL2 requirement on an oil tank may meet that level when it is installed. Whether it will six months later is another question. That is why IEC 61511 requires overfill systems be regularly audited – a requirement, again, reflected in the Buncefield recommendations.5 Perhaps even more importantly, focusing purely on the SIL rating of the level gauge ignores the role of processes and human capital. The Buncefield recommendations cover both, as well as equipment – being as much concerned with CCTV, fire and gas protection, and procedures as level gauging. Safety standards such as IEC 61508 and IEC 61511 stress the need for quality measures on safety during the operation’s lifetime. The majority of these relate to human behaviour, tasks and risks.

For more information:

This article was written by John Joosten, global product manager for radar and safety, Honeywelll Process Solutions: joosten@honeywell.com

References 1 Impossible explosion: The Buncefield blast explained, The New Scientist, 28 March 2012 2 http://www. buncefieldinvestigation.gov. uk/reports/preparedness.pdf 3 Recommendations on the design and operation of fuel storage sites, March 2007, Buncefield Major Incident Investigation Board (BMIIB) 4 Clause 4.2.12(i) Tanks shall be provided with at least two numbers of level instruments working on different principles… 5 BMIIB ibid: Recommendation 4 The overfill prevention system … should be engineered, operated and maintained to achieve and maintain an appropriate level of safety integrity in accordance with the requirements of the recognized industry standard for ‘safety instrumented systems’, Part 1 of IEC 61511; and Recommendation 5: All elements of an overfill prevention system should be proof tested in accordance with the validated arrangements and procedures sufficiently frequently to ensure the specified safety integrity level is maintained in practice in accordance with the requirements of Part 1 of BS EN 61511.

Join InCon at booth #53 at the TSA Conference & Expo on the 19th September.

TANK STORAGE • September/October

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efficiency

Improving terminal operations while simplifying regulatory compliance reporting Efficiency, cost control and enhanced visibility are more important than ever in today’s increasingly complex terminal environment. At the same time, marine terminal operators must operate in a challenging regulatory climate and support new and more rigorous expectations for industry best practices. There are two key requirements for meeting these objectives. The first is to have instant access to vessel information, including both current and historical locations and events. The second is that this information be more than simply ‘points on a map’, so that operators can use the data for business intelligence and analysis, and to improve operational efficiency, decision-making and reporting. Today’s enterprise-class terminal management offerings make this possible by delivering access to both real-time and historical vesseltracking information, and combining this information with integrated reporting, analysis and dock management tools. These systems also can be used to automate and enhance dock scheduling and activity logging, as well as other key processes and functions, while enabling operators to combine

multiple, independent systems into a single, comprehensive and fully integrated solution. Integrated marine terminal management systems deliver benefits up and down the chain of command, from the dock operators and supervisors through senior corporate management. Each stakeholder has specific needs. For instance, at the corporate office, IT teams must ensure system compliance with security and risk mitigation practices. Chartering managers and schedules must connect with traders

and port captains also need the right data with which to investigate incidents and improve safety and security. And marine transportation and operations management personnel are challenged with optimising logistics and loss control/prevention, while validating and minimising demurrage claims and streamlining analyses related to the root causes of delays. Meanwhile, dock operators need to know where all vessels are and resolve upcoming conflicts while maintaining an accurate

The PortVision TerminalSmart Dock Management allows collaborative job scheduling, activity logging and back-end reporting and identify available vessels while maintaining reliable schedules. Marine technical departments, superintendents

TANK STORAGE • September/October

record of dock activities. The business optimisation group needs to reduce costs and improve efficiency,

while plant and operational management need to maximise resource availability while managing the budget and ensuring safety. For optimum efficiency and accuracy, all of these tasks must be integrated into a single comprehensive dashboard that combines vessel tracking capabilities with enterpriseclass process automation and analytical tools. Vessel-tracking capabilities must extend to each AISenabled vessel in the region of interest, which requires a service that can process tens of millions of daily AIS-based ship location reports and provide access to billions of records about historical arrivals, departures and individual movements. The service should also provide detailed visibility into commercial port arrivals and departures as well as ship movements on the open sea, all in a single display screen. In addition to providing vessel information, terminal management systems should also automate scheduling tasks for just-in-time deployment, based on a combination of current vessel locations, dock availability and intransit traffic conditions. This enables terminal operators

efficiency to streamline vendor and resource management and incorporate vessel information into their current traffic scheduling dispatch and management practices. For optimal effectiveness, users should be able to define their own customised filters, views and fleets. They also should be able to receive and share e-mail and text message alerts about fleet movements. The system should be able to automatically timestamp and capture data about arrivals (including sea buoy arrivals), departures and other vessel events, and allow users to add their own documents and information about dock-side events for each vessel call. Task-oriented modules should be available for such specialised functions as dock management, giving organisations the option to replace paper- and spreadsheet systems with an end-to-end, collaborative job scheduling, activity logging and back-end reporting tool. With this kind of fully integrated solution, users can view and manage vessel activities until dock arrival, and then maintain dock activities, demurrage data and other information pertinent to the vessel call’s Statement of Fact (SoF) information. Viewing and managing real-time activities is only half of the puzzle. Equally important is the ability to review historical vessel movements and incorporate this information directly into the supply chain model. This makes it possible, for instance, to perform integrated demurrage reporting and analysis within a single, integrated dashboard environment. Or, the historical data could be used to identify the root cause of costly incidents and property damage. Putting systems to use One of the largest US refineries has used both real-time and

historical vessel-tracking data to streamline activities ranging from job scheduling and real-time operations to activity logging and demurrage management. In the past, each transaction required a dozen or more hand generated documents derived from manually created spreadsheets. The error prone process consumed considerable staff time. Once the company moved these processes to an enterprise-class terminal management platform, it was able to reduce both costs and labour requirements, while also simplifying vendor and resource management, and automating scheduling, dispatch and traffic management. The company has also integrated all demurrage reporting and analysis functions, and can now automatically compile all necessary data required to track, validate and report demurrage information for all fleet routes and berth calls. This detailed information is also used to produce documentation required to support or dispute demurrage claims, with savings estimated at more than $1 million (€750,000) per year at a single site. Many terminal operators also use systems to manage all aspects of on-water incidents or events. Today’s refineries face the potential for millions of dollars in damages when vessel wakes impact piers, ships and other resources at docking facilities. These wakes also cause serious or even fatal injuries, especially in the case of dock-related construction projects where personnel and equipment are at risk. With an effective terminal management system, operators can view real-time vessel traffic in a single, convenient display, gain access to every aspect of an actively managed incident in user-defined safety zones, and share real-time

Vessel incident replay information and reporting with remote participants and other operation centres to drive compliance and create incident reports. These systems also can be configured to automatically notify construction staff anytime a vessel is transiting at high speed toward specific locations, so they can initiate safety measures including securing equipment and pulling people out of harm’s way. In other cases, the damage may have already been done, but terminal management systems can be used in a forensic capacity to identify responsible parties. Terminal management systems can provide not only real-time information about every commercial vessel on the waterway, but also up to five years of historical data with which to investigate incidents and prepare cases for compensatory damage claims. Finally, terminal management systems can also be used to help operators comply with industry best practice recommendations, such as the recently established Oil Companies International Marine Forum (OCIMF) Marine Terminal Management and Self Assessment (MTMSA) guidelines. These guidelines define standardised Key Performance Indicators (KPIs) and best practices for assessing the effectiveness of management systems used in berth operations and

the ship-to-shore interface. Major oil companies are using these guidelines to evaluate their own terminals and those of prospective third-party operators and other service providers. Among the most challenging MTMSA elements are those having to do with vessels, their movements and their contracted personnel. Also challenging are KPIs related to the safety and efficiency of the dock’s layout and various dock operations. These include scheduling, liquid cargo transfer activities, and communication and information sharing both inside the organisation and between the dock team and various port and harbor entities. The latest terminal management systems make it easier to perform to these KPIs related to MTMSA vessel and dock processes. Marine terminal operators must enhance a variety of complex and interrelated operations in an increasingly challenging and competitive environment. By combining vessel-tracking services with enterprise-class analytics, reporting and process improvement tools, today’s terminal management systems improve visibility while reducing costs and enhancing overall efficiency, safety and security. For more information:

This article was written by Jason Tieman, director of maritime operations at PortVision www.portvision.com

September/October 2013 • TANK STORAGE

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TSA preview

Dedicated to the UK The UK’s leading event for the bulk liquid storage sector returns to Coventry on 19th September ABB Consulting is an international technical consultancy based in Cheshire, UK. At the TSA exhibition the company will be displaying its latest developments in level measurement hardware and will also be exhibiting some of its main services, including: • Integrity management –

helping process industry companies improve the integrity of their operations and assets • Technical consulting and engineering – to improve performance in the areas of compliance, operations and engineering to customers in the chemical, petrochemical and oil

and gas industries • Process safety – process safety services to high hazard process industries • Maintenance management – a number of services to improve the cost effectiveness of maintenance and repair activities • Process engineering

software – engineering software to aid in project design and plant operations • Project services – client centric project services to complex and high hazard process industries • Inspection services – tank inspections to EEMUA159 standards • Training services –

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September/October 2013 • TANK STORAGE

TSA preview

ABB provides a number of services including tank inspections accredited providers to the National Skills Academy Process Industries NSAPI • Asset closure – demolition, remediation, dismantling and relocation of process equipment such as tank farms. Visit ABB Consulting at area number 58 Adler and Allan (A&A) operates across the UK and overseas, providing a full range of oil

military base to a supermarket distribution centre. Between 2008 and 2012 it also worked for the Olympic Development Authority installing and providing all site fuel services for 2012 London Olympics. A&A has provided response coverage to pipeline operators across the UK for many years and is now increasingly moving into planned preventative maintenance, contaminated land management and

A&A provided fuel services at the 2012 London Olympics

and environmental services to a blue chip customer base. A&A has been contracted to undertake specialist tank installation, cleaning and maintenance work across a range of industries including major oil companies, distribution network operators, logistics and distribution groups and supermarket chains. The company supplies complete turnkey tank installation packages including site drainage, interceptors and all related civil works including bund lining. These range from new refuelling facilities on a

environmental consultancy. A&A also provides a service to recover good fuel from contaminated or degraded stocks. Its mobile tank cleaning and fuel polishing systems allow fuel to be cleaned while still in the tank. Its robot tank cleaning units for specialist tasks are environmentally-friendly and remote controlled, able to remove silts and surface materials using powerful cleaning heads. Additionally, A&A offers services for spill response, tank installation, pollution prevention,

TANK STORAGE • September/October

Anton Paar’s measuring instruments are deployed in the storage industry fuel supply, mechanical and electrical services, waste management and tankering. Visit Adler and Allan at area number 35 Anton Paar supplies measuring solutions to petrochemical companies, refineries and storage and testing facilities. Its customers also include manufacturers of biofuels, vehicles, bitumen and asphalt, and food and drink. The company’s product range includes: • Density instrumentation for laboratory applications, compliant with D4052, ISO12185 • DMA 35 EXP, a portable density meter that complies with IP559 and ATEX • L-Dens, a process density measurement for blending and quality control offering pressure stability of measurement • Process density and temperature transmitters for

direct connection to flow computers, including fiscal metering and custody transfer applications • Laboratory viscosity and refractive index instruments for blending, product specification and quality control • Microwave sample preparation systems for ICP, AA & ICP-MS analysis • Systems for the analysis of tribology, flow behaviour and rheological properties • Flashpoint and flammability testing equipment • Bitumen and wax testing equipment • Distillation equipment for fuel quality control • Penetration and texture testing systems • Lubricant and grease testing instrumentation • PetroOxy, oxidation analysis for fuels. Anton Paar has a range of portable, laboratory and process instrumentation for use in a number of industries. Visit Anton Paar at area number 10 Aquilar will be showcasing its TraceTek leak detection technologies for the petrochemical industry and, in addition, some of the products used to detect hydrocarbons in a range of environments such as hazardous areas, airports, refineries, fuel storage sites, commercial generator sets and tank rooms. Visit Aquilar at area number 57

ATEX, SIL-2 and IECEx certified leak detection sensor and controllers from Aquilar

TSA preview Axiom Engineering is an independent specialist engineering consultancy, supporting industry in the fields of materials engineering, mechanical engineering and inspection and asset management. It is a UKAS accredited inspection body with accreditation for the inspection of pressure systems, high hazard systems and storage tanks. The company is also able to prepare and certify Written Schemes of Examination. With that Axiom understands the surrounding different pieces of equipment, possible degradation routes and how to optimise inspection to minimise both downtime and costs. Axiom also designs bespoke repairs or offers modifications for pressure systems, vessels and tanks. The routine use of Finite Element Analysis ensures the repairs are code compliant while optimising materials’ properties

Axiom is a UKAS accredited inspection body well versed in corrosion rates

and resource requirements. The company’s materials engineers regularly assist the inspection and mechanical departments in understanding degradation mechanisms, corrosion rates and environmental interactions. Visit Axiom Engineering at area number 52

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Baillie Tank Equipment (BTE) is a global manufacturer of equipment for the aboveground storage tank industry. BTE’s range includes its new Geodesic FlowDome roof, full-contact and pontoontype internal floating roofs, floating roof seals and drain systems, together with small to very large diameter floating suction lines. BTE has already received orders from around the world for its Geodesic FlowDome, including the US, Belgium, Serbia, Slovenia, Peru, Ecuador, Singapore, UAE, Brazil, Saudi Arabia and Venezuela. Visit Baillie Tank Equipment at area number 3

Brown McFarlane is a distributor and processor of steel plates used for the construction of storage tanks, with a stock that ranges from carbon through to super duplex stainless steel. It has warehouses and processing facilities in the UK, Belgium, UAE and Singapore. The company offers bespoke supply solutions to its clients for materials delivered onsite or dockside and from complete tank farm installation to individual tailored requirements. Its management strategy spans throughout all stages of a project, from the initial formulation of a project plan through to final handover of completed documentation. Visit Brown McFarlane at area number 55

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September/October 2013 • TANK STORAGE

TSA preview

Brown McFarlane has factories worldwide Cogent Sector Skills Council (SSC) and the National Skills Academy Process Industries have worked with industry and stakeholders to develop the Process Safety Management training standards. Cogent is the SSC for a variety of industries including petroleum, chemicals and pharmaceuticals. It is licensed by the government to help

employers in these scienceusing industries to address their workforce development needs so that they can compete successfully. NSPAI is Cogent’s commercial arm and manages the quality of training provision for process safety management training. Congent’s suite of courses include:

• Process Safety Leadership course for senior executives: provides participants with the tools to develop an understanding of the business case for effective process safety management • Process Safety Management Foundations course: provides the knowledge and understanding of the principles of process safety management across an entire organisation • Process Safety Management for Operations: the third in the series of process safety courses developed by the Academy Process Industries, to meet the requirements of the Process Safety Management (PSM) training standards • Petroleum Safety Training Course: a one day course for contractors working at

top tier COMAH petroleum sites such as refineries, bulk hydro carbon storage, terminals and other sites where petroleum products are stored or processed. Visit Cogent SSC at area number 40 Composite hose technology company and Formula One equipment supplier Dantec has recently introduced a new innovation for fuel transfer with its fire-safe vapour release system (VRS). The fire-safe VRS can be used in a variety of fluid transfer applications including fuel, chemicals and vapour. The VRS has been independently approved by the British Government Department of the Environment, Fire Research Station and also the Swedish Fire Service. It features high specification materials which are advantageous in terms of flexibility, weight, chemical resistance and price.

Join us at booth #43 at the TSA Conference & Exhibition on the 19th September.

TANK STORAGE • September/October

TSA preview

Dantec’s new VRS remains intact after being exposed to fire for 30 minutes The technology uses a series of non-asbestos barriers to slow the fire. Vapour is released gradually in a controlled way, providing an early warning signal in order to prevent a sudden catastrophic failure. The hose remains intact and is still able to hold product even after a 30 minute long fire attack with temperatures reaching over 1,200°C. Dantec will be showcasing this technology along with other products at the TSA show.

Visit Dantec at area number 27 Exhibiting at TSA for the first time this year is engineering design company Elmet Process. Recent projects have seen Elmet design a crude oil storage and tanker loading facility for a client operating in Yemen, where key aspects of the project required the transport of the crude product for final treatment at a separate facility. Consequently, a road tanker

loading facility was designed to enable the loading of five trucks simultaneously, so that the required throughput for the facility could be met during daylight hours. Additionally, Elmet has led and coordinated various hazard and process safety studies on UK oil storage facility locations and completed a quantitative risk study for a UK LNG storage facility. The company’s client base includes BP, National Grid and IGas. Visit Elmet Process at area number 32 Endress+Hauser is a manufacturer of measurement instrumentation, services and solutions for industrial process engineering. Its product portfolio includes sensors, instruments, systems and services for level, flow, pressure and temperature measurement as well as

SITE SERVICES

Safety Solutions HTS Safety Solutions provide expert engineering services against BS EN 61511 for both new and legacy systems within the process and storage industries. Our Engineers have a broad range of experience and are externally certified to ensure the systems and consultancy services provided are in total compliance with the standard.

Functional Safety Life Cycle Functional Safety Life Cycle management is the key objective to achieving compliance within the frame work of BS EN 61511. Managing Functional Safety in accordance with the BS EN 61508 / 61511 group of standards will show that:

w The Company has a clear safety policy w Appropriate techniques and measures are in place w A Clear organisation structure is in place w Non-conformance is identified w Systems and processes are auditable w Safety planning is in place

analytics and data acquisition. The company supports its customers with automation engineering, logistics and IT services and solutions. The company is active in a number of industries, including the petrochemical, oil and gas, chemical and renewable energy sectors. Endress+Hauser offers a range of measuring technologies, from level inventory monitoring in tanks and silos, to mass based custody transfer tank gauging at tank farms and the automation of terminals. And in order to help its customers optimise production, logistics and maintenance processes, the company also provides scalable software packages that monitor inventories on a local, national or global scale. All Endress+Hauser solutions ensure cost-effective implementation with full lifecycle management of

Process Hazard & Risk Assessment Allocation of Safety Functions Safety Requirements Specification Design & Engineering Installation, Commissioning & Validation Operation & Maintenance

Modification

Decommissioning Join us at booth #33 at the TSA Conference & Exhibition on the 19th September.

www.htsgrp.com HTS Engineering Group Limited, 17 Beeston Court Stuart Road Manor Park, Runcorn, Cheshire, WA7 1SS Tel: 01928 238 360 Email: info@htsgrp.com

September/October 2013 • TANK STORAGE

TSA preview

Fenelon’s services range from tank design to construction and maintenance

Endress+Hauser’s tank gauges can be fitted at tank farms the solution provided. Visit Endress+Hauser at area number 1 Fenelon Storage Tanks is a UKbased storage tank company involved in design, construction and refurbishment contracts. The company works across a variety of industry sectors and its services range from detailed design through to fabrication, site construction and term maintenance contracts. Its package of services includes conceptual design, feasibility studies, detail design, fabrication, site construction and tank inspection. 2012 was a successful

year for Fenelon as it completed a number of design and construction projects, in addition to tank refurbishment contracts and term maintenance work. In April it was awarded its fourth consecutive International Safety Award from the British Safety Council for its work during 2012. Visit Fenelon Storage Tanks at area number 48 Headquartered in Texas, Flare Industries manufactures combustion and pollution control technology such as flare systems, thermal oxidisers, incinerators, burners and

Flare and Jordan work to deliver systems fast and economically

TANK STORAGE • September/October

ignition systems, while Kentuckybased Jordan Technologies is a vapour recovery and control systems company. Recently the two companies built a Rapid Project Group (RPG) business that

compounds annually. Visit Flare Industries and Jordan Technologies at area number 34

produces and sells off-the-shelf products to deliver systems quickly and economically. Flare Industries has installed thousands of combustion systems currently eliminating industrial waste around the world. Jordan Technologies is responsible for removing over 500,000kg of smog-related

metering technologies on a demonstration liquid flow rig. Advantages of these technologies include: • Bi-directional non-invasive flow measurement of almost every liquid (and gas) type, from hydrocarbons to chemicals such as VCM, fish oils or molasses

Flexim Instruments UK will be exhibiting its range of non-invasive clamp-on flow

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TSA preview

Holvrieka builds its storage tanks on-site

Flexim’s clamp-on flow metering solution • Retrofit installation and commissioning on existing pipes without the need for pipeline operation interruptions or shutdowns • Permanent solid transducer coupling and no mechanically moving parts make these meters a virtually maintenance-free flow measurement solution • No increased costs for high pressure or exotic material lines or large diameter pipes • Temperature compensated transducers to prevent measurement drift • Low flow sensitivity coupled with no zero drift and pre-zero calibration • The dual microprocessor calculates up to 1,000 flow measurements per second, allowing for continual precision measurement • Flow measurement at extreme temperatures (from 580ºC to -190ºC) using the patented ‘Wave Injector’. Visit Flexim Instruments at area number 56 Flotech Performance Systems is a manufacturer and turnkey solutions provider to the petrochemical, process and energy sectors, specialising in solutions for the storage, transfer and distribution of liquid and gas products. It offers engineering services

including design, manufacture, installation and site support from its in-house design and manufacturing facility in Grimsby, UK which allows FlotechPS to react to the needs of any project from concept through to commissioning. The company provides products and services to customers in the downstream industry. Its clients include BP, Nustar, Simon Storage, Esso/ExxonMobil, Oilserve, Walkers, Ineos, Greenergy, Ineos and Vopak. Visit Flotech Performance Systems at area number 43

Founded in 1978, HMT is a provider of aboveground storage tank solutions. Its products include: • Internal and external seal systems • Drain and floating suction systems • Geodesic domes • Skin and pontoon floating roofs • Full contact floating roofs • Emissions reduction devices The company says it employs a ‘unique’ approach through partnering with customers which allows it to optimise tank operations. Its team of engineers, project managers and field personnel can assist with common challenges such as reducing emissions, optimising tank capacity, reducing stranded inventory and engineering a tank

system that complies with safety standards and extends maintenance intervals. Visit HMT at area number 4 Holvrieka develops, manufactures and installs stainless steel storage tanks and accessories. It also takes care of installation and assembly work. Holvrieka is part of a network of companies within the CIMC Group and operates for a variety of brands and clients. Its services also include fluid transportation by land and sea. The company builds most of its tanks for the storage industry on-site. This, coupled with its specially developed site equipment, enables Holvrieka to realise short manufacturing time using as little space on the site as possible. Holvrieka has constructed

HMT’s tank solutions cut emissions and optimise tank capacity

September/October 2013 • TANK STORAGE

TSA preview site-built tank projects around the world, ranging from one to over a hundred tanks per project. Visit Holvrieka at area number 50 Honeywell Enraf offers the technology needed for terminal operations, from single instruments to complete turnkey solutions including safety, security and service, meeting stringent government locations for safe and optimised operations. The company has 60 years of experience in the level gauging, loading, verification and servicing sectors, combined with its knowledge in process management. It is committed to: • Reducing project risk • On-time production schedules • Improving business performance • Safe and reliable operations • Operational efficiency

• Optimising tank storage capacity • Open connectivity • Modular design • Robust migration path Visit Honeywell Enraf at area number 17 HTS Engineering Group delivers electrical, control and instrumentation (EC&I) systems, with services focused on instrumented control and safety systems. The company operates three key services that can be tailored individually or supplied as one complete solution. They cover: functional safety engineering, process control and software engineering, and contracted engineering and design services. The group has recently worked on behalf of Vopak, Amec, Tradebe, Murphy, MEL Chemicals, Perstorp Hydrokem and PX Group. This will be its first year exhibiting at TSA. Visit HTS Engineering Group at area number 33

TANK STORAGE • September/October

IFC Inflow is a supplier of tanker loading equipment and tanker safe access systems. It offers a range of equipment including petroleum and chemical loading arms, tanker loading skids, loading platforms and gantries, self-levelling folding stairs, mobile safe tanker access equipment and high speed bulk loading systems. Petroleum bottom loading arms: the 445 series arm is designed for heavy duty use at petroleum terminals and distribution depots. It is a suitable replacement for first generation arms reaching the end of their life and for new applications requiring high performance at a low cost. Chemical loading arms: top and bottom loading arms, custom designed and tailor made for individual requirements, typically from carbon or stainless steel. Options include pneumatic control, overfill sensors, vapour cones, lagging and trace

heating and PTFE lining for aggressive applications. Petroleum loading skids: suitable for terminal applications where flexibility and speed is important. Offering flow rates up to 2,500l/ min, with accurate metering, up to six product arms per system and compliant with ATEX regulations. Safe tanker access: its gantries and platforms are designed to comply with the latest work at height regulations and can fit with its self-levelling folding stairs to provide a safe way for operators to access the tops of tankers. Folding stairs: provide safe access to any height tanker, available in a range of sizes and offer operator safety while working on the tops of tankers. Options include pneumatic control, cages in special sizes and materials, press down facility and cage infill grating. Visit IFC Inflow at area number 36

TSA preview InCon is a non-destructive testing (NDT) inspection company providing storage tank, pipeline and heat exchanger tube inspections in compliance with guidelines laid down by EEMUA 159, API 653 and API 570 including ‘fitness for purpose’ reports, risk-based inspection assessment and inspection scheduling reports. The company provides technical services and cost-effective programmes tailored to each client’s individual requirements. Its services include: • Storage tank isolation, cleaning, blasting and preparation for return to service • Storage tank integrity assessment • Storage tank floor inspection • Storage tank shell survey • Stainless Steel and aluminium storage tank shell survey • Pipeline integrity and

tubular inspection • Magnetic particle inspection • Digital radiography of PTFE/FRP pipelines • Phased array inspection of pipelines, welds and mapping of corrosion areas • Positive material identification and remote video inspection • Bespoke weld procedures and welder qualifications • Mobile radiographic services. Visit InCon at area number 53 Inventure Technologies has over 10 years’ experience as maintenance consultants in the petrochemical industry, providing its clients with solutions regarding maintenance and inspection. The company has developed a web-based software program for executing complete riskbased inspection studies on storage tanks and is

Inventure specialises in maintenance and inspection also familiar with reliability centred maintenance. Its software program complies with industry standards and guidelines (EEMUA 159, API 653) and the studies contribute to the optimisation of the safety, reliability and profitability of various tanks. Extra modules or add-ons can be integrated into the

program, such as inspection planning, management overview, foundation and settlement, the CAPEX/ OPEX forecast and more. Inventure can provide tailor made software packages and, through the acquisition of a license, the software can be used worldwide. Visit Inventure Technologies at area number 14

September/October 2013 • TANK STORAGE

TSA preview

Going it alone From perfume to sewage, cyanide to chocolate, Loadtec is able to handle them all Loadtec Engineered Systems, following years of being a representative, took the plunge this year and launched its own range of loading and unloading arms. Each with a five-year warranty these arms can handle fuel, chemical, acid and food/beverage liquids. ‘We are now accepted as a brand in our own right and this year had been record breaking for us,’ explains Alec Keeler, MD of Loadtec. ‘We’re finding that our local market in the UK is really picking up. And in northern Europe we have become the preferred supplier for a multiple site, multiple country deal expected to last five years.’ In Saudia Arabia, Loadtec has secured an order with the world’s largest chemical plant. Earlier this year the facility ordered four Multi Modal Access systems, and Loadtec will be delivering 30 more by April 2014. Additionally, Loadtec has been awarded a contract

for the supply of multiple LPG tanker loading stations. The project is located in Nigeria and it is claimed to be the largest LPG terminal in the country. The terminal is expected to initially see 70 tankers a day of varying size and configuration. The contract is initially for the supply for nine LPG metering skids, tanker loading stations and a complete terminal automation software and hardware system. ‘By partnering with companies like Toptech, Newson Gale and Carbis we are able to offer customers a complete terminal package,’ Keeler explains. ‘This is what our customers are asking for.’ As Loadtec is a relatively small company it is able to offer customers the personal touch: ‘We are able to analyse what equipment a company needs, advise on the best solutions and help people prioritise what they need first.’ Fall prevention is a

The risk of falling from tanker tops is a subject of increasing concern to operators

complementary line within Loadtec’s portfolio and the company has received a $5.3 million (€4 million) project for the supply of vertically elevating safety platforms in Saudi Arabia. It has also been awarded further contracts in Scandinavia for railcar access and unloading systems. ‘We believe every operator should have the right to safe, clean operating conditions,’ Keeler explains. ‘As there is no payback for safety equipment, we can understand some companies’ reluctance to install it, but that’s not to say it is acceptable. Just two weeks ago there was an accident in the UK where a worker fell off a platform, where Loadtec launched its own range of loading arms in January this year there was just one

TANK STORAGE • September/October

handrail – sometimes it takes an incident like that before a company will take action.’ Loadtec offers a range of fall prevention solutions but refuses to supply safety harnesses. ‘We don’t offer fall arrest technology, only fall prevention systems,’ says Keeler. ‘The main problem with safety harnesses it that if an employee is trapped for 20 minutes they can end up dying from Orthostatic suspension trauma. This means a second person must also be present, which ends up being both costly and ineffective for the company.’ With business going so well the next step for Loadtec is to look for representatives of its own. ‘We are looking for local experts to distribute our products in the EU and the Middle East,’ Keeler adds. Loadtec Engineered Systems is exhibiting at the TSA show this year at area number 8

TSA preview

Magnetrol is exhibiting its Eclipse 706 GWR along with other solutions

Magnetrol manufactures level and flow instrumentation for a range of process market applications. At the TSA event the company will be exhibiting just a few of its measurement and control solutions: • Liquid displacer level switches: these mechanical buoyancy switches work through extreme media conditions and challenging applications • Ultrasonic level switches: Magnetrol’s Echotel

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ultrasonic level switches are used for liquid control performance and tank overfill prevention • Thermatel flow switches: these can be used in a variety of interface applications detecting the difference in thermal conductivity of the media. The company’s new Eclipse 706 GWR will also be on show at this year’s exhibition. Visit Magnetrol at area number 39 Omniflex is a tank monitoring specialist and will be exhibiting a range of products at TSA. On show will be its IEC61508 safety certified smart alarm annunciators. These alarms can be integrated into existing gauging instrumentation to provide an independent alarm system per the recommended practice prescribed by the American Petroleum Institute API RP2350 and the Buncefield report. And Omniflex’s web-based remote monitoring is suitable for customers that need: • To monitor contents of storage vessels • To run a production facility and want to share tank levels with suppliers, or a vendor wanting to manage the inventory on their customer’s sites • To manage their own vendor inventory which is

If a chute’s packed right, it’ll work correctly. But what about your tank overfill protection device? You don’t need to climb the tank to test it manually with Drexelbrook’s IntelliPoint SIL2 level switch. You just push a button in your control room to verify operation. So why take a leap of faith with something less? Visit www.drexelbrook.com/tankoverfill to learn more or call 800-553-9092.

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Smart alarm annunciators from Omniflex

September/October 2013 • TANK STORAGE

TSA preview

PFP filtration systems for the oil and petrochemical sectors usually characterised by many widely distributed sites, often with only a single tank to monitor per site. Visit Omniflex at area number 21

breather valves together with its new lightning and static protection products

Praxair Services (UK) specialises in leak detection services. The company’s TracerTight leak detection system is available for use in a number of applications, including aboveground and underground storage tanks and buried piping. The TracerTight system is a sensitive leak detection system which provides leak location with no disruption to service. It can test any size system without loss of sensitivity and is not affected by hydrocarbons from previous leaks or spills. Visit Praxair Services at area number 12 Precision Filtration Products (PFP) is a custom manufacturer and distributor of filtration products and filtering systems and claims to be able to provide almost any type of air, liquid, or gas filter for various applications. The company serves a number of industries, including oil refining, petroleum and pipelines to name a few. Its engineers are familiar with off-spec jet fuel, ethanol, diesel and hydraulic oil, able to provide cost-effective solutions.

from Lightning Master. There are two related causes of ignition in flowback tanks: static from normal tank operations and static from a direct or nearby lightning strike. The mechanism is similar, with static ignition taking place over minutes whereas lightning ignition takes place over a fraction of a second. Fortunately, the solution to preventing both is similar. Static charge accumulation occurs in the vapour droplets suspended above the stored product.

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When the charge reaches an incendive level, it may arc to a metal object. If the arc occurs in a flammable mixture, it may cause a fire or explosion. Lightning ignition is not normally caused by the heating effect of lightning attachment. Unless the lightning discharge attaches to a vent, ignition is usually caused by a secondary effect arcing produced by a direct or nearby strike, therefore controlling static inside the tank is key. The key to preventing

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Protego UK will be exhibiting its explosion protection products such as flame arresters and

TANK STORAGE • September/October

TSA preview The Floormap3D is an MFL tank floor inspection system which discriminates between top and bottom surface originating corrosion. Visit Silverwing UK at area number 6

Pruftechnik specialises in maintenance and monitoring technology includes the company’s VIB range of systems, in addition to the portable systems headed by the VibXpert II dual channel analyser and balancer and on-line systems such as the wireless VibConnect RF or the Signalmaster systems • Training, services and installation – customer care to support its systems,

Protego will exhibit lightning and static protection products from Lightning Master ignition consists of three steps: bonding and grounding, in-tank static control, and structural lightning protection. The combination of Protego flame arresters and breather valves with Lightning Master’s products results in a high level safety level of explosion. Visit Protego at area number 47 Pruftechnik provides rotating machine maintenance and monitoring systems and has been developing laser measurement and condition monitoring systems for more than 40 years. Its product range includes: • Laser alignment – the laser measurement product range now encompasses multi coupling shaft alignment, roll (parallel) measurement, flatness, straightness and dynamic measurement of machine movement. • Condition monitoring – this

manufactures testing solutions to evaluate the condition of industrial assets, supporting effective and safe operation. The company will be exhibiting its Floormap 3D, Scorpion and the new V750 vacuum box design at this year’s TSA show. The V750 has been redesigned to API 653

SoftSols Group is a provider of computerised maintenance management software (CMMS) Agility and is celebrating its 30th anniversary this year. Agility allows organisations to manage and integrate their assets and equipment, maintenance work orders, labour and employees, and stock and spare part inventory. Users of this CMMS system include Simon Storage,

such as training and plant measurement tasks. Visit Pruftechnik at area number 61 Reynolds Training Services has recently launched a new online training platform iLearn, which enhances, supports and refreshes operators’ safety skills. It is easy to use and cost-efficient. All courses have been crafted in-house to ensure the same quality of learning as when engaged face-to-face with RTS, without the need to bring in third party trainers or send operators off-site. It is also populated with videos, games, animations and a range of different question sets. TSA delegates will be able to learn how the system generates business benefits in terms of reducing delivery costs, as well as whittling down expenses triggered by in-house delivery such as overtime and travel. Visit Reynolds Training Services at area number 44 Silverwing UK specialises in NDT solutions for storage tanks, vessels and pipelines within the oil, gas and petrochemical industries. It designs, develops and

The Agility software program from SoftSols

inspection standard. It incorporates a 750mm weld inspection length, new lighter body, calibrated vacuum gauge, internal LED’s to ensure correct visibility along the test weld, and new seal to reduce operator fatigue.

Oikos, Oil and Pipeline Agency, and Costain. Advantages of the system include: • Extended asset life • Increased production • Lower maintenance costs • Improve quality

Testing technology from Silverwing

September/October 2013 • TANK STORAGE

TSA preview and reliability • Quick user adoption • Return on investment The Agility home screen features a red, amber, green management dashboard to communicate tasks and work orders needing attention. Information, reports and KPI’s are easily generated, interpreted and actioned. Agility can also be integrated with existing internal management systems such as SAP, IBM and Sage, and can be accessed on the move via handhelds or tablets using a browser or mobile phone network. Visit SoftSols Group at area number 24 TesTex NDT is a non-destructive testing company with a strong reputation for the inspection of storage tanks and pipelines. Some of its offerings that will be available

to view at TSA include: • Deep Saturation Eddy Current – a technology able to inspect ferrous and non-ferrous metals with a penetration of up to 1”. Originally designed for thick storage tank floors in Japan and the Middle East, Deep Saturation Eddy Current can be applied to numerous situations from tank floors and shells, to various sizes and geometries of pipelines. • LineCat – a technology that is able to wrap a pipe from the outer diameter, automatically traverse the pipe and record data collected. Developed for rapid automated pipeline inspection, it is a solution for long stretches of pipeline such as the BP Alaskan line with the capacity to inspect up to 15ft/min.

Other services from Schemes of Examination’ for TesTex NDT include: pipelines, pressure systems • Non-destructive testing and storage tanks in line • Engineering services, with current HSE directives. stress analysis, venting TesTex is listed as an calculations and approved contractor on calculations for ‘fit UVDB Achilles Verify, ConCom for purpose’ and ISNetworld and has • Tank calibration/strapping been a member of the • Foundation settlement British Institute of NDT Service and shell measurement Inspection Group since 2003. and evaluation Visit TesTex at area • Management software number 7 • Risk-based inspection to EEMUA or API • Repair recommendations and methodology • Repair management and full turnkey management projects • Quality assurance and documentation • In-house CAD services The company also supplies EEMUA 159 and API 510/570/653 certified integrity assessors and can TesTex will be showcasing a offer advice on ‘Written number of inspection solutions

MHT Technology Ltd Leading the way forward in Tank and Terminal Management

For complete control of your assets, 1. Monitor Receipts

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 Improve efficiency 3. Monitor Outgoing Product

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 Increase accuracy  Optimise deliveries  Leak and theft detection  Improve Health and Safety

Visit us on Stand 37 at the TSA Conference & Exhibition, 19th September 2013 Tel +44 (0)1748 828820 Email sales@mht-technology.co.uk Web www.mht-technology.co.uk TANK STORAGE • September/October

leak detection

Hydrocarbon concerns: six key areas There are many complexities of transporting and storing fuel. A weak link in the chain creates potential for disaster, so it’s vital not to only rely on point gas sensors but to consider the complete liquid phase leak detection system Aboveground storage tanks monitored by a TraceTek Fast Fuel Sensor within the rain water gulley

1. Aboveground detection - Rapid detector response is essential. Some sensors can respond to liquid fuel spills within five seconds - Sensors and controllers are rated for hazardous area installations. (ATEX and/ or IEC EX approval). 2. Detection within rainwater outfalls - A critical consideration is the deployment of a sensor to detect thin layers of fuel on water and report this remotely to a control room - Monitoring the surface of rainwater accumulations before the storm water is discharged can prevent environmental infractions and punitive fines. 3. Detection around pumps and sumps - Aboveground areas with a lot of bolted flanges, rotating parts and valve packing are likely places for leaks to develop.

4. Detection on aboveground pipes - Aside from the safety considerations, the real value of pipeline monitoring is for the prevention of environmental damage - Installing a sensing cable at the bottom of a pipe allows detection of leaking fuel at any point along its length and provides a pinpoint leak location to the nearest metre.

Rain water outfall monitored by a Fast Fuel Sensor attached to a float assembly

TraceTek TT5000 sensing cable with a UV protection installed on the bottom of overhead pipes presence of fuel regardless of the size of the leak. 6. Detection below fuel storage tanks - Detecting leaks from corroded tank bottoms is one of the bigger challenges for tank farm operators - Placing sensor cables in

5. Detection of below ground pipes - The primary intention of leak detection on underground pipes is to detect fuel seeping into the soil long before it damages the environment. Leaks with a low flow rate that develop into a large spill are not detected by SCADA. TraceTek fuel sensing cable installed TT5000 sensing within a slotted conduit below the perimeter of a large fuel storage tank cable detects the

Transfer pipe protected with a TraceTek Hydrocarbon sensing cable

parallel runs below the tanks floor is an effective way to monitor tanks with corrosion, especially on large crude oil tanks. Many liquid chemicals can be detected: • Petrol • Jet fuel • Diesel • Crude oil • Diluted bitumen • Gas condensates • Solvents: alcohols, ethanol, methanol, isopropanol • Aqueous chemicals: nitric, sulphuric, hydrofluoric acids.

For more information:

This article was written by Julian Waumsley, MD of Aquilar, www.aquilar.co.uk

September/October 2013 • TANK STORAGE

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September/October 2013 â&#x20AC;˘ TANK STORAGE

inspection

Optimising inspections Storage tank inspection is required to ensure a tank continues to be fit for purpose and does not present a risk to the product stored, personnel or the environment. Some of this inspection can be carried out with the tank in service, such as tank shell corrosion measurement and visual inspection of the external surfaces. However, in order to inspect the tank floor it needs to be emptied, cleaned and entered. This means the cost of inspection is not only the manpower and equipment required, but also potential loss of income during the out of service time. Over the total lifetime of the tank, the out of service time is calculated as the number of times it needs to be inspected, multiplied by the time taken to perform each inspection. The time

taken for each inspection can be reduced by good tank preparation, rapid gathering of corrosion measurements, quick report generation and repair decisions, and finally making any repairs necessary. The number of times a tank is inspected can be reduced if corrosion rates are low and a risk based inspection (RBI) programme is in place. Therefore recording of measurements for trending as part of an inspection can result in long-term cost savings by increasing the time between inspections. Cleaning From an inspection view point the tank floor needs to be clean enough for the inspection tools to work accurately, and also enable a good visual inspection.

Typically this means water jet cleaning, but if there is scale present this should also be removed by blasting. If this is the first time a tank has been inspected there may also be remnant welds or spatter on the plate, which should be ground off to allow complete scanning and avoid damage to sensors. If the floor is not cleaned well enough, then the corrosion inspection team will have to do this in order to achieve a good standard, adding to their own time in the tank. If using magnetic flux leakage (MFL), the floor does not have to be dry, however there should be no standing water. It cannot be stressed enough that effective cleaning ensures the rest of the inspection and repair process is both accurate and more cost-effective. Corrosion measurement

Inspection efficiency Inspection Efficiency

Typical

Optimum

Clean

Measure

Analyse

Report

Repair

How each of the activities contribute to the inspection and repair process in a simple inspection. Of course, it is possible on larger tanks to carry out measurement, analysis and reporting in parallel given enough people and equipment

TANK STORAGE • September/October

Once the floor is cleaned it can be visually checked and scanned for corrosion. Typically the floor will be inspected by MFL to identify areas of corrosion, which is then verified by ultrasonic testing (UT). The MFL scanners can be simpler ‘stop-ondefect’ type systems that require UT checking or pit gauging of each indication, or a full data recording and ‘mapping’ system. If the

latest mapping systems are used, such as the Silverwing Floormap3D, then due to advance signal processing it is recommended that only 10% of indications need to be cross-checked to ensure correct calibration for the tank. The latest MFL scanners can also differentiate between top and bottom corrosion reducing the need for pit gauging and give better inspection under coatings. When scanning, walking pace governs speed, so efficiency is determined by recording and measuring as accurately as possible, to remove the need for time consuming verification measurements. On a tank with minimal corrosion stopon-defect can be quicker, but there is no evidence of scanned areas, and no backup data for future comparison and RBI. As the number of corrosion indications increases, the time advantage of the simpler system is lost as more UT is required. However, on small tanks less than 15m in diameter small hand scanners can be an effective method, especially if backed up with good software for reporting. In addition to MFL on the floor plates, vacuum testing is carried out on all plate welds. This requires an inspector to place the vacuum box on each part of the weld

inspection

Acceptable to carry out a tank floor inspection

Poor cleaning showing residue and loose corrosion and check for bubbles as the vacuum is generated. Standards produced by API and others specify the correct vacuum to be applied and viewing light levels to ensure consistent inspection. Non destructive testing company Silverwing has just announced its latest product with integral LED lighting to ensure correct light levels, and remove the need to continuously move tripod lamps. It also has a seal design for reducing the hand pressure required to achieve seal. These advantages reduce the time taken and operator fatigue, improving the weld coverage per hour. Having skilled teams that have been trained to not

only operate the inspection tools, but how to use them in the most efficient way, will ensure time is not wasted on-site and the highest quality corrosion information. Report and analysis Depending on the condition of the tank floor, the creation of a detailed report can take as long as the inspection itself. Minimising the report generation time, and instead spending more effort on analysis, will result in the best repair strategy for the current condition and predicted future degradation. It is here where computer-based tools have the biggest impact on

Silverwing SIMS showing patch plate design tool

efficiency, and hence the time from inspection being completed to repairs being carried out. Constructing a full tank floor report requires drawing of the floor plate layout, identifying areas of corrosion and integrating data from MFL, UT, vacuum box and visual inspection. If a mapping MFL scanner has been used the tank layout can be automatically generated by reporting tools such as SIMS from Silverwing. This not only saves time in report generation, but also provides evidence of the areas scanned and where there were restrictions. The reporting tool should also allow the addition of vacuum, UT and visual inspection notes and readings to build a full picture of tank floor condition. When the corrosion data is assembled, the reporting tools should provide adjustable pallet and threshold for the calibrated data, aiding the decision process on the level of repair required. If previous tank data is available it can be compared at this point to determine corrosion rates and set repair thresholds.

Once areas of repair are identified, patch plates in line with recommendations such as API need to be specified and a repair sheet created. Again, by using available reporting tools this can be done quickly and efficiently, while ensuring all corrosion areas above the set limits are covered. Post repair, any vacuum retesting can be logged, and what remains is a new tank drawing with located patch plates and baseline corrosion for future monitoring. In summary When considering inspection efficiency and cost, the project manager should consider all aspects of the process to ensure a good quality, fast turnaround. Thorough initial tank preparation, selection of the appropriate measurement equipment, efficient recording of results and analysis, creation of repair requirements and prediction of future testing requirements all play their part. New product developments can address both improved inspection quality and efficiency, and when used by experienced technicians can reduce the overall cost of inspection.

For more information:

This article was written by Wayne Woodhead, CEO of Silverwing, www.silverwingndt.com

Silverwing SIMS showing historical data comparison and corrosion growth

September/October 2013 â&#x20AC;˘ TANK STORAGE

Angus Fire storage tank safety systems are trusted the world over

page header

Angus Fire has many years’ experience supplying fire protection, fire fighting equipment and fire fighting foams to the petrochemical sector, safeguarding flammable liquid hazards both on and offshore. The combination of highly volatile flammable liquids and high temperatures involved in petrochemical processes, presents a unique challenge to fire fighters. Angus fire fighting equipment is designed for long and reliable service in the hostile conditions and environments encountered in this industry, from desert heat to arctic cold; and our fire fighting foams are specially formulated to maximise performance, whilst minimising environmental impact. Come and see us on Stand C6, NEC Birmingham, 25-26 September 2013

Angus Fire Ltd Thame Park Road, Thame, Oxfordshire OX9 3RT UK Tel: +44 (0)1844 265000 • Fax: +44 (0)1844 265156 Email: general.enquiries@angusuk.co.uk Web: www.angusfire.co.uk TANK STORAGE • September/October

spill control

What is an encapsulator agent? Encapsulator technology is a tool developed during the late 1990s to control hydrocarbon spills. Since its inception, the technology has continued to be enhanced and has diversified in application and use. Encapsulator technology has been identified to be beneficial in applications such as spill control, confined space degassing, fire suppression, environmental remediation and odour control. Encapsulator agents have a large, amphipathic molecule with a polar head that is hydrophilic and a non-polar tail that is hydrophobic. As the encapsulator agent mixes with the water, it reduces the surface tension of the water, resulting in smaller droplets. The non-polar tail pulls the polar head to the surface of the water droplet due to its hydrophobic characteristics, allowing the polar heads to form a protective shell around the water droplet. Spill control of flammable liquids Controlling spills involving hydrocarbon liquids and their dangerous vapours is the number one priority for anyone facing these types of hazards. Whether in an industrial, military, or public servant setting, quick mitigation of the spill and explosive vapour will result in a safer environment. With this in mind, on encountering a spill of polar or non-polar solvent,

environment. An encapsulator agent can be used to mitigate these environments by encapsulating the vapours and reducing the explosiveness and toxicity of the environment. The technology has been proven to be effective in safely mitigating atmospheric conditions consisting of hydrocarbon, H2S, SO2, iron sulfide, B-Tex compounds (such as benzene, toluene, ethyl benzene) and xylenes.

Encapsulator agent H2O droplet a spray application of an encapsulator agent could safe the area. Immediately upon applying the encapsulator agent solution onto a spilled fuel, the formation of micelles will rapidly occur and immediately begin to safe the area. Whether conditions present a lateral surface or a saturated spill, the incident can be efficiently and safely mitigated. Safely mitigated incident: North America, summer 2013 In an industrial refining setting, an aboveground storage tank containing a waste mixture of bulk hydrocarbon liquids overflowed and created a dangerous atmosphere

Encapsulator agent molecule

for plant personnel and production activities in the facility. In a direct and quick response, an encapsulator agent was used immediately and effectively to safe the dangerous conditions to ensure the safety of all responding personnel while the cleanup effort was conducted. Environments where atmospheric monitoring is priority When the chance of encountering toxic vapours is present, one should ensure the implementation of stringent safety and monitoring protocols, relevant to the hazardous

Confined space mitigation: North America, summer 2013 A tank contractor initially drained and mechanically ventilated a 150â&#x20AC;? AST for two working days with minimal reduction in its internal hazardous atmosphere produced by the petrol that had been stored in the tank. Due to the age of the tank, some sludge and scale was noted from an external visual inspection of manway one. The decision was then made to use an encapsulator agent and introduce the mixture directly into the tank via a pressurised apparatus to ensure the atmosphere was mitigated for a safe confined space entry. Within 45 minutes of the initial application in manway number one, the LEL reading had dropped to readable levels. As the contractorâ&#x20AC;&#x2122;s crew moved to the second manway and introduced another application, the readings were

September/October 2013 â&#x20AC;˘ TANK STORAGE

spill control further reduced within limits. After the initial treatments and subsequent draining of the mixture, the atmosphere readings were measured at zero LEL and volatile organic compounds, greatly increasing the contractor’s productivity while ensuring a safe environment for the entrants on the confined space crew. Fire suppression The fire suppression mechanics when using an encapsulator agent are different than using only water or other fire suppression agents. This technology does not rely on a blanket or separation suppression mechanics; rather it dissipates the heat internally providing rapid and permanent heat reduction, encapsulating the combustible

vapour molecules, and interrupting the free radicals from coalescence to interrupt the fire tetrahedron. This interruption is occurring on three of the four areas as noted on the modern fire tetrahedron rather than separating oxygen from the fuel or heat and smothering the fire. The molecular encapsulation and permanent heat reduction allows the burning fuel to be cooled beneath its auto ignition temperature. While also interrupting the free radicals that are trying to coalesce, the visibility increases and the by-product toxic soot of the combustion cycle reduces. In combating a fire hazard, an encapsulator agent has been shown to be six to 10 times more efficient in cooling, while also using less amounts

of solution to extinguish a fire, compared with plain water.

The scenario encountered involving rack storage of drummed lubricants presented a threedimensional fire hazard. A local steel corporation soon offered mutual aid and additional resources. One of the resources was an encapsulator agent that the plant’s fire brigade had an intimate knowledge and strategic supply of. Once implemented, within a short period of time following the application, the blaze’s heat was reduced below the auto-ignition temperature and the fire was extinguished.

Safely mitigated incident: Italy, 2010 A fire started in a storage building containing rack storage drums of lubrication fluids and eventually reached a massive scale at a petroleum facility in Italy. Evacuations were ordered and fire fighters were deployed to battle the large blaze. Three large asset groups tried to extinguish the fire for several hours using water enhanced by fire suppression foam solution but, due to the extreme heat of the fire, the foam was hampered from forming the required blanket to separate the fuel and oxygen to reduce the heat of the blaze.

For more information:

This article was written by Justin Champion, North American market manager, Hazard Control Technologies, jchampion@hct-world.com

2_Tank_Storage_Jun_Jul:Layout 1 19.06.13 10:35 Page 1

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TANK STORAGE • September/October

• Full control in all kind of operation modes • Reduced installation costs for pipes and valves • High safety due to variable operation • Low pulsation • No fixed duty points • Wide range of capacity

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The National Petroleum Management Association Petro Expo 2013 Conference & Exhibition 18th-21st November 2013, Washington DC, Hilton Alexandria Mark Centre The Fuelhandler magazine, the official exhibition catalogue for the NPMA’s Petro Expo. Make sure you get in front of all the movers and shakers in the aviation fuelling industry. For commercial opportunities please contact: Anisha Patel • anisha@thefuelhandler.com • +44 (0) 203 551 5752 For editorial contributions please contact: Margaret Dunn • margaret@horseshoemedia.com • tel: +44 (0) 208 687 4126

www.npma-fuelnet.org The Fuelhandler magazine, the world’s premier publication 100% dedicated to the aviation fuelling industry 92

September/October 2013 • TANK STORAGE

construction

New marine terminal for hydrocarbon storage and distribution in the Port of Algeciras (Cádiz) In December 2010, Ecolaire España S.A. (OHL Industrial Oil & Gas), a subsidiary company of OHL Industrial and integrated in OHL Group, was awarded the turnkey contract for the construction of a marine terminal in the Port of Algeciras (Cádiz). The Algeciras Terminal project was designed to fulfill two main objectives: to cover the fuel supply needs of ships in the Port of Algeciras and to offer increased environmental and safety guarantees for the surrounding population. This was the single largest terminal project ever undertaken in Spain. Its construction by OHL Industrial Oil & Gas included the development of all the detailed engineering, supply of materials and equipment, construction and installation, and commissioning and startup of the marine terminal. To carry out this project, OHL

Industrial Oil & Gas invested more than 2 million hours of construction, via more than 600 workers, at the peak of the project. The company was also recognised by the client for the outstanding safety records of the project, due to the low number of accidents. Main terminal installations The main installations of the terminal include: • One storage terminal located on land, consisting of the permanent hydrocarbon storage and distribution installations • A berthing terminal consisting of a new jetty and the necessary equipment for loading and unloading ships. The terminal is equipped to perform the following operations and services: unloading and receiving petroleum products from vessels in the berthing

Main terminal installations overview

TANK STORAGE • September/October

terminal, storing petroleum products (petrol, gasoil, and fuel oil), distributing stored products to ships and barges, and blending and heating services for the stored products. Storage terminal The storage terminal has 22 API 650 hydrocarbon storage tanks located in three separate bunds, plus three 1,000m3 tanks and one 50m3 tank , housed in a fourth bund for utilities. The nominal storage capacity is 403,000m3: 346,000 for fuel-oil and gasoil, and 57,000 for petrol. All the product tanks are 21m high, with different diameters ranging from 11 to 50m, with capacities from 2,000 to 40,000m3. The tanks’ foundations consist of compact earth bases and gravel rings. They were monitored daily for settling during the hydrostatic testing phase that lasted more than one month until the required degree of compacting was achieved. More than 16,000m3 of concrete was used in the terminal for civil works including: bund walls, pavements, buildings and marine civil works. The terminal also has more than 400 items

of static and dynamic mechanical equipment. The storage terminal is divided into the following zones: • Product tanks, equipped with internal heating systems and rotative mixers. More than 8,000 tonnes of steel were used in the construction. Floating internal screens were made of aluminum and installed inside the petrol tanks to prevent evaporation of volatile products. • Valve manifold with full flexibility between product lines and tanks, and pumping station with seven pumps with capacities of up to 2,500m3/h to deliver highly viscous products of up to 700 centistokes to the berthing points • Tank and interconnection lines running approximately 1,500m to the berthing points. They required the installation of 37km of piping, more than 3,000 valves, and more than 200,000” of welding. • Auxiliary installations, which include: - Odour reduction unit, as required in the environmental impact statement - Systems for the

construction

- -

production of nitrogen and compressed air Fire protection installation with seawater intake pumps Heating system with thermal oil, consisting of two boilers, each with a power rating of 5MW System for treating and processing water with hydrocarbons Dewatering collection system for the bottom of tanks by an authorised waste manager Additive delivery system System for receiving and detecting pigs for pipeline cleaning and maintenance Control systems and instrumentation, with more than 6,000 signals, providing a high degree of automation Electrical system with construction of several on-site transformer substations with 10MW of installed power and more than 200km of cables. Buildings, with a total of 2,120m2 of floor space were constructed. This includes the administration building and control room, the services building, a covered area to house boilers and pumps for the heating system and the electrical building.

Berthing terminal The main axis is located approximately 606m from the north dock of the Isla Verde expansion and perpendicular

Valve manifold with full flexibility

Auxiliary installations (utilities, administration building and control room) to the Ingeniero Castor del Valle breakwater. It is made up of a series of caisson-type structures that support the mooring and berthing elements, as well as the loading arms and other equipment. The berthing terminal is capable of simultaneous loading and unloading of two vessels with capacities ranging from 2,000 to 225,000 DWT. Additionally, there is also a barge mooring at the north dock of the Isla Verde expansion, which is mainly foreseen for loading barges. However, the installation can also be used for unloading activities for vessels up to 16,000 DWT. More than 36,000m3 of concrete was used in the construction of this terminal. It was also designed to allow concurrent docking of three vessels in order to perform ship-to-ship operations. The berthing terminal is equipped with the following installations: • Eight loading and unloading arms • Low voltage installation with an electrical building • Control system with fibre-optic connection to the storage terminal • Metal structures formed by platforms, bridges and gangways • Equipment such as fenders, bollards, quick-release hooks, a ship approximation and navigation assistance system • Nitrogen and compressed air system • Closed-circuit television, public address system, and intercom circuit

and buildings, including the electrical building and control room. To execute this project, OHL Industrial Oil & Gas required the participation of more than 50 engineers and an investment of €130 million, in addition to the state-of-the-art 3D technologies, which allowed

complete traceability in managing materials, improved coordination in design and less interference during the construction phase.

For more information:

This article was written by OHL Industrial Oil & Gas, www.ohlindustrial.com

More about the EPC contractor: Since its origin in 1976, Ecolaire España S.A. (OHL Industrial Oil & Gas), has been operating as an engineering contractor specialising in oil & gas turnkey projects, and became part of OHL Group in 2008. OHL Industrial Oil & Gas is an EPC contractor that has executed more than 120 projects in the oil & gas industry. It has a large group of experienced professionals from all industrial engineering disciplines (process, mechanical, piping, civil works, electrical and instrumentation and control), offering a full range of services including: • Project management. • Engineering services: conceptual studies, basic and FEED design, and detailed engineering • Construction supervision, commissioning and start-up, and O&M • All contract types: EPC, open book, turnkey, LSTK • HSE & QA/QC commitments. Its main recent EPC projects are: • Hydrocarbon storage terminal, Algeciras (Spain) Contract amount: €130 million (completed 2013) • 50MW thermosolar power plant, Seville (Spain) Contract amount: €315 million (in progress) • Hydrogen plant, Cadereyta (Mexico) Contract amount: $72 million (in progress) • NGL fractionation plant, Pisco (Peru) Contract amount: $126 million (completed, 2012) • Phenol plant, Huelva (Spain) Contract amount: €95 million (completed, 2007). OHL Industrial is a 100% subsidiary company of OHL, providing comprehensive services to clients within the industrial sector in its capacity as EPC contractor, including its own engineering. The company has permanent offices in the US, Mexico, Peru, Chile, Colombia, Brazil, UAE and Oman.

Berthing terminal (jetty and barge mooring)

September/October 2013 • TANK STORAGE

page header

Hayward Baker advert

800-456-6548

www.HaywardBaker.com

For a complete listing of our services and offices, visit: www.HaywardBaker.com

TANK STORAGE â&#x20AC;˘ September/October

ground preparation

Multiple ground improvement technologies for tank sites with variable soils The Battleground Oil Specialty Terminal Company (BOSTCO), owned by Kinder Morgan Energy Partners (55%) and TransMontaigne Partners (45%), has approximately 185 acres of land and waterfront on the Houston Ship Channel in La Porte, Texas, US. The first phase of terminal construction, which began in December 2011, includes construction of 52 tanks with a combined capacity of 6.5 million barrels for residual fuel, feedstocks, distillates and other black oils. As is the case with any other aboveground storage tank (AST) project, the soil must first undergo a geotechnical investigation to determine if it can provide the required bearing capacity, and whether or not the tank will experience differential settlement which will threaten its integrity. What follows is the analysis and designbuild solution executed to improve the ground beneath 12 planned steel tanks; six of 110ft diameter and 60ft tall (100 series), and the other six of 155ft diameter

and 60ft tall (200 series). Geotechnical investigation The area where the 100 and 200 series tanks were to be constructed is known as Barnes Island and has served as a dredge disposal site for many years. The locations for the 200 series tanks has deeper, more recent and softer cohesive deposited dredge spoils, while the 100 series tanks locations has thinner dredge deposits consisting of mixed cohesionless and cohesive material. The upper fill and dredge spoil are underlain by the Beaumont clay and Lissie formations. These formations are over-consolidated and consist of cohesive and cohesionless soil types extending to the maximum depth explored of 150ft. Soil evaluation Kinder Morgan asked the tank services division of US-based geotechnical construction contractor Hayward Baker to review the geotechnical report data and offer a design-

build ground improvement programme to allow tank construction on concrete ringwall foundations over the poor fill and dredge spoil. Settlement tolerances were calculated using the method outlined in API Standard 653. The tolerance calculated found that 8â&#x20AC;? of unimproved settlement exceeded a safe amount. The more recent dredge deposits were targeted for improvement to minimize settlement to acceptable long term values.

Ground improvements â&#x20AC;&#x201C; 100 series tanks Vibro replacement stone columns Vibro replacement stone columns are effective at reinforcing cohesive and cohesionless mixed soils such as the random fill in the treatment zone of the 100 series tanks. The technology uses a powerful down-hole vibratory probe to compact aggregate backfill into a stiff column, reinforcing the

surrounding soil during the process. The aggregate consists of either new stone or recycled concrete. Using the dry bottom feed method of construction, the stone is introduced in lifts at the tip of the vibrator via the follower tube and after the first lift of aggregate is introduced, the vibrator is rammed into the lift and imparts high levels of vibratory energy into the surrounding soil. The process is repeated until ground surface is reached, completing the column. Replacement stone column The stone columns were designed with 3ft diameter and installed to the required design depth to cover approximately 22% of the tank footprint. The coverage of the stone column treatment extended to the perimeter of the tank directly beneath the planned ring beam. The load transfer platform (LTP) was constructed out of angular crushed material and reinforced with a layer of high-strength geogrid directly above the stone columnimproved ground. The ring beam was then constructed on top of the LTP and finished. Predrilling was performed at the site to aid penetration through the upper stiff crust. Using the dry bottom feed technique the stone columns were installed to design depth, below the water table, without the need of expensive casing. The stone columns transferred much of the load from the tank through the random fill to the underlying medium dense sand layer. The stone columns also decreased settlement and resulted in more uniform settlement of the upper fill material. Analyses were performed to estimate the short- and long-term settlement of the tank foundations, to evaluate bearing capacity and for design of the load transfer platform.

September/October 2013 â&#x20AC;˘ TANK STORAGE

ground preparation Performance of the stone columns The stone columns increased the allowable bearing pressure to 4,000 psf, effectively supporting the tank contractor’s concrete ringwall foundations. The stone columns provided predictable settlements during the hydrotest in a range of 2-3” within the treatment area, depending on the tank with a differential of less than 2.5” between the edge and centre of the tank. The long-term settlements due to the increase in stress from the tanks and fill on the Beaumont and Lissie Formations will be approximately 1 to 2 additional inches based upon Hayward Baker’s preliminary calculations. These longerterm deeper settlements will be uniform under the footprint of the 100 series tanks, with a uniform dishing of the area extending out approximately 125ft away from the tanks. Consideration was also taken in regards to the effect of the adjacent tanks in calculating the shortand long-term settlements. Post-hydro settlements of less than 2” drove the stone column design.

Ground improvements – 200 series tanks Soil mix columns Soil mix columns are effective at strengthening soil in situ with cementitious binding agents. The binder is typically Portland cement which can be added to the soil as a dry powder (dry soil mixing), or injected into the soil during the mixing in the form of slurry (wet soil mixing). The binder is injected through the mixing tool as it is advanced through the soil. The rotary action of the mixing blades on the tool blends the soil with the binders. The resulting product

is referred to as ‘soilcrete’, and is many times stiffer than the surrounding soil. Soil mix column construction The wet method of soil mix column construction was used within the BOSTCO project. The soil mix columns were 8ft diamter and installed on a rectangular grid pattern beneath the tank footprints, to the required depth to provide adequate bearing

Wet soil mix column tooling

Wet soil mix column installation

and settlement control. The soilcrete material was designed to deliver a minimum unconfined compressive strength of 150 psi. Quality was controlled during the construction of the column with onboard telemetry or data acquisition (DAQ) on the drill and site grout plant. The daily evaluation of the installation parameters, and other physical quality checks, helped to ensure the columns met the design parameters. The DAQ system allowed the operator of the rig, as well as the client and Hayward Baker’s engineers, to verify that each column was installed into the underlying stiffer soil formation. The use of DAQ also provided repeatability of the column construction and post-processed verification of all data. Sampling of the

TANK STORAGE • September/October

columns was performed using both wet grab sampling (freshly mixed soilcrete) to test continuity of the strength and coring elements. The use of soil mix columns for the 200 series tanks allowed a more economical load transfer platform in lieu of a reinforced concrete pad or ring beam.

of the area within a zone of approximately 200ft from the edges of the tanks. It is important for tanks to not settle more than 1 to 2” post-hydro test as this can put undue stress into connected piping. Careful evaluation of both the elastic settlements within the treated zone and permanent settlements in the untreated zone must therefore be reviewed carefully for long-term successful tank performance.

Performance of evaluation

Multiple ground improvement technologies can be employed on tank sites with variable soil profiles. A thorough geotechnical investigation is necessary in order to determine the best methods suited to treat the soils. This, in turn, leads to a more cost-effective ground improvement solution rather than traditional removeand-replace options, or deep foundations for load transfer.

The soilcrete columns increased the allowable bearing pressure to 4,000 psf, and adequately transferred the tank loads through the upper poor soils to the underlying Beaumont Formation. Settlements during the hydro testing of the tanks were less than 2” within the treatment zone. Hayward Baker’s design indicated that the longer-term settlements from below the treated zone would be in the range of 3 to 4”. These additional settlements will take some time to occur, resulting in a uniform dishing

Summary

For more information:

This article was written by Dennis Boehm, VP at the Houston office of Hayward Baker, and manager of its tank services division. +1(281)668-1870, dwboehm@haywardbaker.com

emissions

New measurement protocol becomes the norm for the Netherlands Leak detection and repair (LDAR) programmes are becoming increasingly important when stepping up efforts to reduce hydrocarbon emissions. Not only do evaporating hydrocarbons represent a loss in revenue, reducing emissions also play a part in improving tank farm safety, as well as reducing the environmental impact.

Emission mechanisms: When reviewing emission mechanisms for atmospheric storage tanks, the main emission generating mechanisms are defined as follows: - Filling emissions - Breathing emissions - Emptying emissions - Cleaning emissions - Blanketing emissions - Sampling emissions - Gauging emissions - Fugitive emissions - Draining emissions These base emission mechanisms are subject to tank design, as emissions are significantly determined from this design. The main emission driving mechanisms from different tank designs are as follows:

night to day, causing vapour volume to expand and build a pressure (P/V vented tanks) or to immediately escape (free vented tank) c) Emptying emissions are caused from product evaporating from the tank shell when product is withdrawn, increasing vapour concentrations in the tank vapour volume d) Cleaning emissions are the result of the tank being cleaned for maintenance or entry, or to allow a product change. Product is often allowed to evaporate, and to be released in the air without any further treatment e) Sampling emissions are the result of opening sampling hatches to allow product sampling from outside the tank f) Gauging emissions are generated from manual gauging efforts g) Fugitive emissions are generated from fittings that show a vapour release rate, such as flanges or other fittings h) Draining emissions are the result of product fractions present in any water drained evaporating. In particular the filling emissions (high in volume), breathing emissions (high in frequency), as well as the cleaning emissions, require particular attention when focussing on reducing emissions.

Vertical fixed roof tanks: Vertical fixed roof tanks (VFRT) are the most common tanks and have long represented the standard for storing volatile organic carbons (VOCs). They generate emissions in the following ways: a) Filling emissions are generated by vapour volume displaced out of the tank when the tank is being filled b) Breathing emissions are the result of a change in Open top tanks are ideal candidates for an IR emission survey temperature from

September/October 2013 â&#x20AC;˘ TANK STORAGE

emissions

Defect tank seal generating high emissions

Leaking pontoon man hole

Leaking PV vent Floating roof tanks: External floating roof tanks (EFRT), as well as internal floating roof tanks (IFRT), are an improvement from fixed roof tanks, as these tanks do have a floating roof on top of the product stored, moving up and down with the liquid. This reduces filling emissions significantly, where an IFRT is further reducing emissions as the floating roof is shielded from sun exposure from the fixed roof on top of the tank. These tanks generate emissions in the following ways: a) Filling emissions are generated by vapour volume displaced out of the tank when the tank is being

TANK STORAGE â&#x20AC;˘ September/October

filled and the floating roof is not yet floating b) Breathing emissions are the result of a change in temperature from night to day, causing higher evaporation as a result of higher product temperatures or expanding vapour stage areas during daytime c) Emptying emissions are caused from product evaporating from the tank shell when product is withdrawn, increasing vapour concentrations in the tank vapour volume d) Cleaning emissions are the result of the tank being cleaned for maintenance or entry, or to allow a product change. Product is often

over the recent decades, when storing hydrocarbons as well as chemicals. Quantification and reporting Extensive testing on actual model storage tanks, in combination with a thorough review of evaporation mechanisms and models, have resulted in API Chapter 19 becoming the relevant code in quantifying emissions for atmospheric storage tanks. In the early days these mechanisms were known as API 2517 â&#x20AC;&#x201C; API 2519 (floating roof tanks) as well as API 2518 (fixed roof tank emissions). However since 1997 and 1998 these codes have been replaced from API Chapter 19, which to date is globally accepted as the code of reference in quantifying and reporting storage tank emissions. Other factors influencing tank emissions

allowed to evaporate, and While it should be clear to any to release in the air without professional involved that tank design any further treatment is an important factor in emissions, e) Sampling emissions there are other factors of great are the result of opening importance as well. These include: sampling hatches to a) Product volatility (products with allow product sampling a higher vapour pressure will from outside the tank generate much higher emissions) f) Gauging emissions b) Climate conditions (tanks subject are generated from to high temperatures and/or manual gauging efforts high solar radiation will generate g) Fugitive emissions are significantly higher emissions) generated from fittings c) Tank manipulations â&#x20AC;&#x201C; turnovers that show a vapour release per annum (a tank frequently rate, such as floating roof penetrations such as gauge poles or roof legs h) Draining emissions are the result of product fractions present in any water drained evaporating. In particular the filling emissions (high in volume), as well as the cleaning emissions, require particular attention when focussing on reducing emissions for these types of storage tanks. In general floating roof tanks generate much lower emissions compared to fixed roof tanks. For this reason floating roof tanks have IR camera positioned on external floating roof tank become more important

emissions manipulated will generate higher emissions compared to a tank seeing less product throughput). Emission measurement Now apart from quantifying emissions as per API Chapter 19 there has been a keen interest in measuring emissions in general, also for atmospheric storage tanks. Several methods for measuring and quantifying emissions are available, such as DIAL (Differential Absorption Lidar) as well as SOF (Solar Occultation Flux method). DIAL is based on combining IR (infrared) vapour measurements combined with sampling points, using dedicated software to calculate emissions. SOF is based on measuring molecules by analysing the solar light. Both methods are costly, and still allow a significant deviation in their findings. Handheld IR camera One of the latest and most convenient methods to actually trace and visualise hydrocarbon emissions is using an IRcamera. The camera works with a cooled mid-wave detector (3-5 μm), that filters near the maximum absorption of the C-H compounds. One filter allows the detection of many gases as the gas

floating roofs. However using the camera it is also possible to identify leaking pontoons (having product inside) and suspect welds on the centre deck (showing Hydrocarbon vapours escaping after developing cracks as a result of wind vibrations in the single deck) or other structural issues.

specifically also targeting storage tanks, and extensively documenting requirements for IR emission measurements, as a first step to becoming an integral part of LDAR programs for storage tanks.

NTA 8399, IR measurements protocol

Rather than wait for others to implement this technique reducing emissions it is probable that the NTA 8399 will develop on an international scale as well. The findings from the camera inspections can serve a multitude of purposes, where the most important are the following: - Leak detection and repair (LDAR), to reduce emissions improving working conditions, environmental standards and reducing product loss - Improve structural integrity of tanks inspected (weld defects and leaking pontoons are easily spotted) - Improve safety for storage tanks, as large vapour clouds or high vapour concentrations are typically the main cause of serious safety incidents occurring in the field of storage tanks (such as fires or explosions) - Report tank condition to relevant authorities (for instance show seals being tight, avoiding seal gap measurements but reporting real seal tightness). As these inspections take very little time they can have a large impact improving the condition and safety for tanks, by verifying actual emission behaviour for tanks.

In the Netherlands and more in particular the Rotterdam port area the local environmental authority DCMR has been one of the early adopters of the IR emission measurement equipment, and it has started using this camera to be able to single out nonperforming equipment and storage tanks. As a result of this development an initiative was developed together with the Dutch national standard agency NEN to develop a measurement protocol standard, to ensure the best possible approach when conducting IR vapour measurements. This measurement protocol has now been finalised and will be introduced immediately after the summer holidays under NTA 8399. NTA 8399 IR emission measurement, protocol structure The protocol structure is in general as follows: • Introduction • IR camera requirements

The detectable hydrocarbons using this technology: Methane

Hexane

Isoprene Ethyl-Benzene

Ethane

Heptane

1-Pentene Methanol

Propane

Octane

Benzene Ethanol

Butane

Ethylene

Toluene

Methyl Ethyl Ketone (MEK)

Pentane

Propylene

Xylene

MIBK

absorbs energy at the same waveband that the filter transmits to the detector. By absorbing radiant energy, the gas and motion of the gas is imaged, identifying and imaging hydrocarbon emissions as large black clouds of visible smoke. Identifying bad actors There are significant advantages in using the handheld cameras available for IR emission inspections. In storage tanks emissions are expected to be present during loading operations, or at the rim seal, the gauge pole and the legs on external

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• • • • •

Measurements, approach Conditions during measurements Preparation of measurements Conducting measurements Reporting measurements

In attachments the following subjects are covered: • Test procedures for IR cameras • Note on IR camera use and LDAR (leak detection and repair) programs • Inspection forms storage tanks The NTA 8399 is unique in the sense that it is the first measurement protocol

Advantages for tank operators

Involving specialist companies In cases where an IR measurement programme is considered one should define clear objectives to allow developing a productive programme. One should also consider whether it makes sense to conduct measurements in house or through external parties. In either case it will be important to develop an integral approach between environmental, engineering and maintenance staff, to satisfy all requirements. Do note it will not be possible to operate atmospheric storage tanks at zero emissions, as some emissions are an inherent result of operating these tanks. At the same time operating an IR measurement programme will allow significant emission reductions and safety improvements.

For more information:

This article was written by Gert van Meijeren (B.Sc.), director of CTS Netherlands, meijeren@cts-tank.com

September/October 2013 • TANK STORAGE

tank roofs

In recent years regulatory authorities have placed increased emphasis on maintaining the integrity of aboveground steel storage tanks (ASTs) to reduce incidents of loss of containment that result in offsite environmental impact. This regulatory focus has created increased need for AST fleet operators to identify and implement new, more cost-effective solutions for maintaining and improving AST reliability. This need to assure higher reliability has resulted in a growing industry trend to decommission and dismantle older tanks in poor condition and operate with a smaller but more reliable core tank fleet. To be effective, this operating strategy requires improvements in tank maintenance practices to assure each tank completes its scheduled run length between planned repair outages. This prerequisite need has created opportunity for development and implementation of alternate in-service repair methods that allow ASTs to remain in service between scheduled API-653 internal inspections, and minimise negative impact to plant operations. Most AST maintenance programmes are based on API Standard 653, Tank Inspection, Repair, Alteration and Reconstruction. While this standard identifies recommendations and requirements for inspecting, testing and maintaining the integrity of ASTs, it is less

detailed with respect to specific repair methodologies for (in-service) leaking floating roof decks and pontoons. This lack of specificity generally results in the continued use of cold work patching techniques that are generally unreliable and temporary by design. Given the limited repair alternatives Installed 3/16â&#x20AC;? thick deck plate that exist today, recommendation and use of these legacy materials by friction generated practices are generally by mechanically-induced left to the sole discretion of motion between rubbing individual tank inspectors. In surfaces under pressure. fact, most of the cold patch The process involves repair methods currently in holding the parts to be joined use today have remained together under significant axial unchallenged for decades pressure and then rotating by few advancements or one part against the other technological improvements. to generate friction at the junction or interface. When PFFB a suitable temperature is reached sufficient enough Friction forge bonding is a to plasticise the materials proven solid-phase metal being joined, rotational joining process that produces motion ceases and the high strength metal-tocontinued axial pressure metal joints. It is a derivation applied during cool-down of rotary friction forge causes coalescence of welding, a manufacturing the contacting surfaces. process that has been used This combination of physics for over five decades. results in a low temperature, Portable Friction Forge high strength full-surface Bonding (PFFB) is a solid phase mechanical bond that is metal joining process that normally demonstrated to be produces coalescence of free of voids and injurious flaw.1

TANK STORAGE â&#x20AC;˘ September/October

Mechanical control of the process This process takes just seconds and is mechanically controlled. It is non-incendive and is accomplished, when compared to arc/gas fusion methods, at a much lower process temperature. Yet, despite this short cycle time and lower process temperature, it is accepted that the friction forge joining process is capable of producing one of the strongest metal to metal joints achievable. Beneficial characteristics Among the many advantages PFFB has over traditional joining and welding methods, three are most significant regarding evaluation of this technology for making AST repairs:

101

tank roofs • Superior strength of the bond • Ability to join dissimilar metals • Low operating temperatures. Of the three, the latter is fundamental to establishing appropriateness and maximising the usefulness of the technology for inservice AST repairs within the mandated restrictions and related requirements of the typical AST repair environment. The safety in design of PFFB technology offers an opportunity for making engineered mechanical repairs to in-service leaking or damaged tank roofs normally associated with out-ofservice hot work. Additionally, PFFB repair methods have advantages over current AST roof cold patch repair methods, especially repairs using typical alternatives such as fibreglass, polymers, composite repair patches or liquid metal overlays that offer little to no additional integrity to the leaking or damaged area. PFFB installed mechanical repair plates essentially restoring structural integrity to the leaking or damaged area back to its original design. Essentially, PFFB can combine the best characteristics of both cold and hot work methods into one simple repair solution. Application specific, intrinsically safe Forge Tech has developed an intrinsically safe PFFB system specifically designed to affect a range of common AST mechanical repairs in a manner consistent with the applicable mechanical code requirements of ASME Section IX, and the work practices and guidelines defined by API 653, as each may pertain to AST repair or modification. The equipment, which consists of both bonding apparatus and sequence controller, is pneumatically powered by standard industrial

102

compressed air (utility air), using no electrical circuitry. The sequence controller provides dependable control of all process parameters and includes redundant control features for process reliability and safety. The actual bonding process is additionally shrouded from its work environment, including ambient vapours, and takes place within a mechanically

with no need for product emptying, decommissioning, or degassing. Suitable repairs A practical use of this technology is for bonding threaded fastener studs (comparable to traditional stud welding) to tank and roof surfaces for attaching repair elements such as gasketed

out cracked or corroded areas and lap-welding new material sections in place. Alternatively, using friction bonding to mechanically attach studs outside the corroded or cracked damaged area can be used to secure a gasketed metal repair plate that, not only remediates the leak, but adds substantial structural integrity to the roof to minimise further deterioration or damage. Finite element analysis (FEA) of this repair method demonstrates reduction in stress to the damaged area caused by roof movement or distortion. FEA contour stress maps show stresses are redistributed around the repair plate and the affect contributes to preventing crack

Stress crack on weld seam

shielded vacuum environment. Other safeguards include fail-safe mechanical stops to control axial travel and visual gage readouts to monitor process parameters. The fully automated process Installed repair plate acts as a doubler - stress goes around the repair sequencer executes pre-determined process mechanical repair plates growth or further degradation parameters based on each used to contain leaks or to to the repaired area. designed repair solution and enhance structural integrity. Furthermore, unlike the proven trial qualifications. Currently, in-service roof polymer patch that provides The short operational leaks are commonly patched little or no additional support cycle and controlled low using a variety of polymer around thin or damaged areas, temperature bonding process compounds, or glue-like the mechanical plate works to minimises transfer of heat materials, to temporarily mitigate potential fall-through to adjoining surfaces, and mitigate leaks. However, threats or occurrences. contact exposure to contained such temporary fixes do not product beneath the roof offer long-term remediation Compliance issues deck plate; under side surface of the issues nor add any temperature of the roof deck structural improvement. The lack of specificity within API remains well below autoOften these unreliable costly 653 regarding leaking floating ignition temperatures of refinery repairs are repeated over roof repair methodology products being inventoried. The and over until such time as sometimes inhibits tank apparatus and its associated the tank is removed from operators from looking too work procedures are designed service and available for far outside the ‘known box’ to safely complete a variety of more permanent mechanical of solutions. This can, and repairs to in-service equipment repairs, such as cutting does, lead to continued use

September/October 2013 • TANK STORAGE

tank roofs of the existing temporary and often unreliable repair practices, such as polymer patching or glue-ups. Such poor roof repair practices have dominated the industry due to the fact reliable mechanical repairs could not be safely completed without the cost of removing the tank from service, degassing, cleaning and other significant prep work. PFFB changes that scenario and opens the door for new thinking and for adoption of new industry solutions and best practices. In general, API-650 and 653 standards typically give allowance for an owner or operator engineer representative latitude in designing and engineering a suitable repair for an AST. This is especially true for leaking or damaged in-service floating roofs, which have few guidelines for repair methods. This is also the case for the older API -12C standard and for asbuilt and riveted pre-code steel tanks that were constructed and originally repaired without benefit of welding technology. PFFB technology has been adapted and designed for safe use within the normal AST work environment and is useful and available for installation of mechanical joined engineered repair plates suitable for most floating roof leaks. As a result, this technology holds the potential for making safe, cost-effective, reliable on-line service repairs and improving run cycle management and inspection intervals of ASTs.

Repairing roof top leaks in-service North America Pipeline had a crude oil aboveground storage tank with a spreading lap weld. The tank also had several other temporary epoxy patches. The company planned to take the tank out of service to make the repairs, but business conditions required the tank to remain in service. Temporary patches to the tank were costly and required significant maintenance time and resources. The solution the company chose was to use Forge Tech’s Portable Friction Bonding (PFB) application to

complete at mechanical repair. Forge Tech installed deck plates over each leak. The PFB application bonds metal studs at a low temperature that does not produce any sparks or flames and does not generate enough heat to meet the API-2207 definition of ‘Hot Work’. This allowed the tank to be repaired without having to be decommissioned or de-gassed. Permanent seals were installed on all tanks that have a five year warranty. Tanks remained in-service without process interruption.

Situation: • Three leaks on crude oil AST, including one lap weld leak and three other leaks with epoxy patches

Forge Tech Solution: • Prepare the site • Affix studs • Install deck plate repair the leak • Stress Calculation Report

Reference

1 Spindler, D.E., What Industry Needs to Know About Friction Welding, Welding Journal, March 1994

For more information:

This article was written by Robert Buckley, Daniel Rybicki and Scott Todd, Application Engineering, Forge Tech, www.forgetechinc.com

Mechanical repairs in-service Mechanical repairs = no emissions No sparks, no flames = no ignition source No shutdowns, no decommissioning = low costs Significant lifecycle cost savings = improved cash flows

TANK STORAGE • September/October

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page header

Advertise in the Final Edition of Tank Storage magazine in 2013 and Reach Everyone Who Attends Tank Storage Asia The November/December of Tank Storage magazine will be distributed in every delegate bag and handed to every visitor at Tank Storage Asia in Singapore in December, donâ&#x20AC;&#x2122;t miss your opportunity to reach one of the fastest growing storage hubs in the world! Featured topics in the next edition of Tank Storage magazine z Welding z External floating roofs and domes z Metering, measuring, overfill prevention z Wireless technology z Tank tapes, coatings, linings, insulation and blasting z Tank lifting and relocating z Terminal automation z Asia regional focus

To get advertising prices or to request a copy of the media pack for 2014 please contact: David Kelly on +44 (0) 203 551 5754 or david@tankstoragemag.com 104

For editorial information please contact: Margaret Dunn on +44 (0) 208 687 4126 or margaret@tankstoragemag.com September/October 2013 â&#x20AC;˘ TANK STORAGE

safety

Planning to avoid failure

Accidents involving storage tanks are unfortunately not as uncommon as people in the industry would like. The oldest and most significant event occurred in January 1919 at an alcohol factory in Boston, US1 when a

tank exploded and dumped 9.5 million gallons of molasses. In January 2005 an occurrence in Buncefield2, UK saw a 22 tank storage park for jet fuel completely destroyed by fire. More recently, in Venezuela last year3, a storage tank farm was also wiped out by fire. An overall look at past incidents shows that events occurred via different causes, marked by a string of major accidents. These accidents combined spurred the US community to create regulations and standards such as API 653, which seek to ensure co-existence with these facilities. A study by James Chang and Cheng-Chung Lin, shown through this â&#x20AC;&#x2DC;cause and effectâ&#x20AC;&#x2122; diagram (top right), took in accidents in storage tanks between 1960 and 2003. It provides an overview of accidents that occurred more frequently at refineries and storage terminals, facilitating an understanding of the causes and regularity of accidents in storage tanks. It shows that accidents involving fire and explosions made up 85% of cases and, of those, approximately

Diagram showing the causes of accidents involving storage tanks4 33% are caused by lightning and 30% by human error or poor maintenance. Other causes included damage from leaks in pipes or valves connected to tanks, natural disasters and other static energy causes. The study also indicated the refining industry, where external floating tanks are more apparent, suffered the majority of these events as they usually have greater operational complexity and large stocks of product, such as crude oil, naphtha and petrol. These products also appear in other studies as figuring heavily in accidents, contributing to large losses due to their combustibility. Despite an advent of technical legal agencies, associations and entities

TANK STORAGE â&#x20AC;˘ September/October

related to engineering, such as the Brazilian Association of Technical Standards (ABNT), American Petroleum Institute (API), American Society of Mechanical (ASME) and National Fire Protection Association (NFPA), and the subsequent standards and recommendations for projects Causes of Accidents

levied, accidents involving storage tanks still occur. So learning from the past is important because similar events could be prevented in the future via good engineering practice to ensure minimum use of these recommendations, codes and standards. QTD

Lightning

33,1

Hot Work

13,2

Poor operation

12,0

Equipment failure

7,9

Sabotage

7,4

Crack/Rupture

7,0

Piping rupture/leak

6,2

Static electricity

5,0

Open flame

3,3

Nature disaster

2,9

Runaway reaction

2,1

Total

242 100%

Cause of tank accidents4

105

safety Understand the whole process The provocation of the technical community comes with a suggestion to develop best practices among professionals that somehow align directly with storage tanks and their managers, performers and operators. To do this it would be necessary to develop a training plan and based on the main standard documents relating to storage tanks. It is important to understand and apply the standard documents fully as single acts of expertise do not eliminate all vulnerabilities. That requires a multidisciplinary forum to discuss, evaluate every step from investment plans to the tank’s retirement, including the findings of regular inspections, service changes, the discovery of any new techniques and methods of maintenance, inspection or repairs, investments into emergency assistance resources, patrimonial security and training for all staff involved. To safely manage a storage area in petrochemical refineries and similar, it requires knowledge from project design to construction, operation, inspection and maintenance of the terminal. To do that, those responsible for those units should use API 2610. This standard covers issues like site selection, the spacing between tanks, pollution prevention and waste management, safe operation, fire prevention and protection, levees, mechanical systems, transferring of products, corrosion protection, structures, needs of nearby communities, relocation, removals and decommissioning. Keeping control Operational control for level checks should receive special attention during

106

storage tank usage, especially when it involves product moving through a pipeline, to aid protection against spillages. The API 2350 covers overfill protection for all surface storage tanks that hold flammable or combustible liquid products. The management of product will need constant logistical evaluation, particularly if tanks see a change of stored product over time. Any overpressure or vacuum, usually resulting from modification of calibration parameters in ventilation devices, need to be addressed. When this occurs it is important to check the behaviour of the fluid and its vapour pressure in relation to the type of tank roof using API 2000 and API 520. Emergency reponse An operations team, together with site security members, can guide their management’s actions when responding to an emergency using NFPA 25 as a reference for maintenance inspection and system testing, including cooling systems, hydrants, foam cameras and combat vehicles. The publications API 2021, NFPA 11, NFPA 30 and NFPA 600 are the recommended documents for training the staff responsible for those actions. Reliability The technical experts, who seek integrity and availability of storage tanks, have API 581 which brings a methodology for preparing a proposal for inspection based on risks and consequences for their company. For cases related to detection techniques for inspection, maintenance, repairs and alterations, API 653 covers details used in soldered, riveted and vertical tanks (excluding refrigerated tanks). Tanks that do operate at temperatures between 5°C

and -198°C, are more suited to the criteria in API 625. Healthy atmosphere As discussed, atmospheric discharges are a constant concern for the safety of storage tanks because they have been identified as frequent causes of accidents throughout the world, especially in external floating roof tanks. Four recommendations which aim to stop this problem are NBR 5419, API 545, API 2003 and NFPA 780. However, these documents do not provide actions to avoid or eliminate any natural manifestations on tanks. Site managers should ensure that recommendations for maintaining the sealing or ventilation systems with flame arresters, as well as tank groundings, are met. It should be noted the sealing of the systems, to avoid flammable emissions, is of great importance in the fight against lightning. The static age Static energy is another phenomenon which causes accidents in tanks, usually with catastrophic consequences. This type of accident mostly occurs when sampling activities of flammable liquids takes place while opening or closing hatches or values. It is vital to incorporate appropriate practices to ensure activities like avoiding metallic shocks, using glasses and sampling gauges for non-conductive material. Conclusion The research and studies of accidents involving storage tanks across the world have become known by the technical community via the media, conferences and congresses. After analysis it can be concluded that most incidents could have

been avoided if good engineering practices were used on design, construction, maintenance and operation, with a well-executed security programme part of it too. References

Catastrophic Tank Failures: Highlights of Past Failures along with Proactive Tanks Designs John R. Cornell and Mark A. Baker, P.E.

The Buncefield Investigation: Third progress report

Written by Taf Powell, Buncefield investigation manager and member of Buncefield Major Incident Investigation Board Explosion kills 24 at Venezuela’s biggest refinery

Written by Abdul Ahad Sunday, 26 August 2012 – Reuters, 2012 A Study of Storage Tank Accidents, James Chang and Cheng-Chung Lin,

a) API 2610 - Design, Construction, Operation, Maintenance, and Inspection of Terminal and Tank Facilities b) API 2350 - Design, Construction, Operation, Maintenance, and Inspection of Terminal and Tank Facilities c) API 2550 - Measurement and Calibration of Upright Cylindrical Tanks by the Manual Strapping Method d) API 2000 - Venting Atmospheric and Low-pressure Storage Tanks, Sixth Edition e) API 520 - Sizing, Selection, and Installation of Pressurerelieving Devices in Refineries. f) API 2021 - Fighting Fires in and Around, Flammable and Combustible, Liquid Atmospheric Storage Tanks g) NFPA 25 - Requirements for Less Frequently Performed Fire Sprinkler System Inspections and Tests h) NFPA 11 - Standard for Low-, Medium-, and HighExpansion Foam i) NFPA 30 - Flammable and Combustible Liquids Code j) NFPA 600 - Standard on Industrial Fire Brigades k) Book Aboveground Storage Tanks – Philip E. Myers l) Philip E. Myers Complete Guide API 2350 – Tank Storage Magazine - Volume 8, Issue 5 m) Bruce Kaiser Controlling Lightning Damage at Transfer Stations – Tank Storage Magazine - Volume 8, Issue 3 n) Orlando Costa The Use of Code API 653 Integrity of Storage Tanks 9th. COTEQ International Conference on Equipment Technology.

For more information:

This article was written by technical equipment and integrity inspector Orlando Costa and engineer equipment and integrity inspector Paulo Valença of Braskem Petrochemical, Unib-Ba

September/October 2013 • TANK STORAGE

page header ! w 400 nks no 0 5 l/ta er 58 .n st 20 .iir gi (0) ww Re +31 l • w ll r.n Ca @ii fo in For over 20 years this annual conference has been the event where the Dutch and Belgian terminal market get together

(Storage tanks) Hear everything about the safety situation of tank terminals: learn from their experiences to benefit your own situation

The following cases will be presented:

Sign up now to receive your FREE weekly newsletter providing up-to-date information on acquisitions, mergers, new terminals and the latest regulations: www.tankstoragemag.com/tsm_newsletter.html

• Dutch Safety Board presents conclusions and recommendations of the report ‘Safety Odfjell Terminals Rotterdam’ • The Dutch Association of Independent Tank Storage Companies - VOTOB shows the first results of the Self Assessment Tool • PGS 29 is revised again! Hear the scoop from the new NEN commission

With keynotes from: • Vopak • Vitol Tank Terminals International • Inspection SZW/DCMR • Botlek Tank Terminal • Argos Terminals BV • Dow Benelux • Vesta Terminals • 4 main ports And many more! Please note: this event program will be in Dutch

If you would like your company’s name to feature in this please contact margaret@tankstoragemag.com (+44 (0)20 8687 4126) TANK STORAGE • September/October

www.iir.nl/tanks Date: 13 & 14 November 2013 Location: Carlton Oasis, Spijkenisse 107

Book your FREE exhibitor pass today with TANKMAG14

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Tank Storage Magazine invites you to attend with a FREE exhibitor pass. Book your place today at www.tankworldexpo.com

• Official support from the Ministry of Energy H.E. Mr Suhail Bin Mohammed Al Mazroui. Hazardous Cargo Bulletin you • Do business with over 70 exhibitors and 1000 strategic, commercial and technical decisioninvite makers. to attend with a free exhibitor pass. • 100 industry leading speakers from government, oil and chemical companies, terminal operators and Book your place today at suppliers, share best pratcise and highlight key stratgeies for success. www.tankworldexpo.com • Free to attend workshops led by the industry’s leading technical experts and suppliers, showcasing on floor training solutions to the most pressing challenges.

Call: +44 (0) 20 7045 0900 or visit our webiste: www.tankworldexpo.com

108

www.tankworldexpo.com

For more information:

September/October 2013 • TANK STORAGE

automation

Integrating security into automation In today’s hectic world, terminal managers face many challenges and most of those do not deal with the loading and unloading of product. Compliance with local, state and federal requirements around emissions, both physical and cyber security, as well as the normal business objective of operational efficiency and zero incidents are all issues that affect terminal management. However, these issues and product loading are inherently linked and terminal operators need to look for solutions that take them on in an integrated approach. In particular, as terminal operations become increasingly automated, it is important that those systems incorporate not only elements that ensure efficient and accurate product loading but also ensure the physical and digital security of the facility. These will all drive towards the ultimate goal of the right carrier receiving a full load with the correct product each and every time. Operational challenges

product. Tightening supplies, competitive markets and the growing use of third-party terminals put increasing pressure on terminal managers to deliver on these promises. While terminal automation may be most associated with automated loading, it is the ability to manage Bill of Lading (BOL) transactions, credit limits and product allocations with the efficiency, costeffectiveness and real time intelligence required by today’s market that turns the above challenges into opportunities. While terminal automation and supply management solutions have been in production for over 20 years, current market conditions establish the new standard for management and communication of terminal credit and product allocations. In particular, as refiners increasingly sell off proprietary terminals and distribute over a network of third-party terminals, they need effective solutions to manage credit limits and product allocations and communicate that to terminal managers and terminal

The industry is responsible for the efficient downstream distribution of fuels and other refined products through a network of equity and third-party owned terminals throughout North America. Real-time data of when and where product is available throughout the entire evolving network is needed in order to manage position and exposure, while also controlling opportunistic buying and arbitration of

TANK STORAGE • September/October

automation systems to ensure steady availability of product. New security threats Access controls are an essential element of physical terminal security to prevent unauthorised access to the facility and its products. The US Coast Guard – Port Security Units (PSU) have increased focus on this with stringent security requirements, presenting challenges for terminal managers. Coast Guard inspectors and COTPs in several areas of the country have ordered terminals to employ 24-hour guards or use personnel to conduct 24-hour screening of all incoming vehicles and railcars, regardless of the previously approved security measures already in place at the terminal. Unfortunately, security threats are increasingly coming through wires and cables instead of the access gate. Cyber security is a significant concern in many critical industries, including downstream oil and gas. In a recent annual review, a team at the Department of

Homeland Security counted 198 incidents of attack on critical computer infrastructure in fiscal year 2012. The events reported ranged from the use of malware to sabotage systems to phishing attacks for retrieving sensitive information. In roughly 40% of those cases, the target was the energy sector – ‘an alarming rate,’ the report said. Security Coast Guard requirements demonstrate the importance of strong access controls. The more these are integrated into the terminal automation system, the less strain it puts on personnel. Card readers and vehicle readers provide automated security elements that reduce the need for handson personnel security. Top automation solutions provide security in the entry process: validating the facility access to a vetted list and, once inside, the driver just needs to enter their order number to ensure the correct load and blend is delivered to the compartment they are loading for. This gives the operator the ability to manage and view the amounts of blends, components, neats and additives that were loaded, along with the products’ temperature and gravity. As terminal automation increasingly interfaces with the internet, particularly through product management systems that manage credit limits and product allocations across a network of terminals, this is a security threat that terminal managers need to

109

automation be increasingly aware of. The more connection points between systems, the more penetration points there are for an external threat to exploit. This is why fully integrated product management and terminal automation systems are critical to the digital security of terminals. An operator needs to ensure that the following three components are included as part of the integral design of the system:

to the business layer, the system needs to operate as one with a common user interface. At the field level, each sensor and device needs to have a fully integrated security and operational model that works the same in a wired or wireless mode. The devices need to have a common integration platform and a seamless security model that folds well into the higher operational level. While seamless integration is an important element for

SAP and others, to automate processes and provide real time intelligence on transactions as they occur. This functionality helps the supplier improve its cash position by invoicing in real-time and, with highly accurate and visible data, suppliers can make timely business decisions. Communicating with terminal automation systems is essential to maintaining consistent product supply. Providing flexible allocation controls that can be

both operational success and security integrity, digital compartmentalising can protect from large-scale incursions. The devices at this level should be separated from the servers, HMI’s and clients with the use of firewalls.

scheduled both in advance and implemented on the fly, allows suppliers to manage position and exposure while controlling opportunistic buying and arbitration of product. The result maximises ratable wet barrel availability to preferred customers when they access the terminal. Similarly, being able to track all customer, shipper, carrier, driver, station and load dates and times allows suppliers to make important decisions about credit limits and product allocations to ensure customers are directed to the right terminals to receive their products. With blending recipes changing from customer-tocustomer and from seasonto-season, suppliers need accurate and up-to-date information on the various products and recipes being loaded. Integration between the terminal automation system and supply management

Advice: Knowledge of, and partnership with, service providers to keep any adversary from reaching and compromising the core of the operation. Prevention applies to internal and external threats, as well as networks, hosts and applications. Defend: Using the system knowledge for recognising specific instances of improper or unauthorised activities before extensive damage is done. Prompt detection allows the client to isolate an adversary, analyse the probable intent of the attack and limit the damage when deployed in conjunction with a response. Respond: Initiating specific actions to isolate or prevent further unauthorised activity and to recover from whatever damage has occurred. Response includes the containment of the compromise, repair of the vulnerability, recovery and evidence collection for pursuing the attacker. In the terminal The automation system needs to be capable of managing all aspects of the operation, from loading and unloading operations and access control, to monitoring of critical systems. This includes pump starts and stops, tank farm management and event notification. From the field at network level zero

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Supply management For both terminal operators and suppliers, maintaining consistent supply of product that reflects market value is key to business success. Therefore, it is important terminal automation and supply management systems interface to provide the tools and information both parties need to make smart business decisions and keep customers satisfied. Top supply management solutions interface with all major terminal automation systems and many proprietary systems, as well as integrate with ERP applications, including JDE,

system is key so suppliers can view the amounts of blends, components, neats and additives that were loaded, along with the products’ temperature and gravity. This includes viewing the total amount of product loaded on the Bill of Lading (BOL). Integration Security needs to be integral to every level of the operation, from level zero at the field I/O, to the host systems and up to the corporate layer. Suppliers and terminal operators need cost-effective solutions that provide centralised, consistent management of product across terminal networks, whether proprietary or third-party. Through the integration of supply management and terminal automation, terminal operators gain confidence that their terminal automation system is granting access to the proper carriers and providing them with adequate, accurate and authorised product, reducing the time and resources spent on physical security and oversight. Automated BOL reduces back-office administrative time, as well. For suppliers, seamless integration provides the tools to maintain a satisfied customer base along with the timely intelligence to make smart business decisions. Suppliers see a reduction in administrative costs by being able to manage across the terminal network, rather than one-by-one, and shorter invoice to cash cycles. Bottom line, the integration between terminal automation systems and supply management systems provides an end-to-end solution for the management of carriers, drivers and the ever-changing recipes to meet the seasonal and legislative pressures on today’s operations. For more information: This article was written by Al Rivero, VP of supplier solutions at Schneider Electric www.schneider-electric.com

September/October 2013 • TANK STORAGE

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If you would like your company’s news to feature in this please contact: margaret@biofuels-news.com (+44 20 8687 4126)

The Conference Formerly Known as LBTF The 4C Environmental Conference: Collaborate and connect with peers, contribute to industry compliance!

Over the past three years, the LBTF Conference has made its mark as one of the best environmental conferences of the year. But this year, some things are changing (for the better) – starting with the conference’s name: The 4C Environmental Conference, held February 24-27, 2014, in Austin, Texas. New Enhancements The 4C name reflects the conference’s broader focus on addressing industry’s most pressing environmental issues. It provides the opportunity for attendees to collaborate and connect with peers, and contribute to industry compliance. Look for the following additions to 4C Environmental 2014: • An ongoing concentration on LDAR, BWON, tanks, flares, and oil & gas plus a special focus topic on all things wastewater • A 4th day to accommodate additional Essentials trainings the day before the presentations and a new Advanced training track the day after • Great presentations and great training, with some new Austin-style fun interspersed to keep attendees going • New Active 4C events to energize attendees throughout the conference Staying True to the Mission At the heart of the matter, it’s the same great conference and the same fundamental mission: to share knowledge, build camaraderie, grow our industry & advance your career. Industry experts share insights and best practices on the most significant environmental enforcement topics of the day. Last year featured presentations by Texas Railroad Commissioner David Porter and representatives from EPA Headquarters, NEIC and Regions 5 and 6, as well as a number of state agencies. Look for more insightful presentations and training sessions from well-respected thought leaders, regulators, and technical experts in 2014. Register Now With growing national and international recognition (conference attendance grew by 41% last year alone), federal and state regulators, HS&E managers, plant managers, environmental specialists, and service providers view the 4C Environmental Conference as an essential industry event. Don’t miss your opportunity to collaborate and connect with peers and contribute to industry compliance! For full conference details and to register, visit 4Cconference.com. And don’t forget to follow 4C on Facebook, LinkedIn, and Twitter for all the latest updates. For more information, contact info@4Cconference.com or visit www.4cconference.com

TANK STORAGE • September/October

111

events

advert index

SEPTEMBER 2013

n 19th September TSA Coventry, UK TSA’s one-day conference and expo is the UK’s leading event for the bulk liquid storage sector. The conference will feature speakers from the COMAH Competent Authority and industry experts presenting on hot topics. Sixtytwo companies are exhibiting at the event, showcasing their products and services for the bulk liquid storage industry.

Official magazine

n 19th September NISTM: 6th Annual Aboveground Storage Tank Conference & Trade Show Houston, Texas The conference is designed for engineers, managers and others who are involved with operations, construction, environmental compliance, spill prevention and response or management activities associated with aboveground storage tanks. During the conference experts will provide the latest information on tank management and share their knowledge on the most recent issues and technological advances.

8 4C Environmental

February 2014

n 24-27th February 4C Environmental Conference Austin, Texas Formerly known as the LBTF Conference, the event’s name change to the 4C Environmental Conference reflects its broader focus on addressing the most pressing environmental issues. A fourth day has also been added to the schedule to accommodate additional trainings and a new advanced training track. The 2014 conference will bring together industry experts to share insights and best practices and environmental enforcement topics of the day.

MARCH 2014

Official magazine

n 30-31st October European Bulk Liquid Storage 2013 Rotterdam, the Netherlands The two day event will be looking at the need to invest in storage facilities and the expansion of ports and terminals, with a focus on improving technical and HSE standards.

n 18-20th March Official magazine StocExpo Ahoy, Rotterdam, the Netherlands The Storage Terminal Operators’ Conference & Exhibition (StocExpo) provides a platform for terminal operators, traders, regulators and equipment suppliers to do business. The 2013 event boasted more than 180 exhibitors from 29 countries across the world. A worldrenowned conference will run alongside the three-day exhibition.

8 Angus Fire

8 AUMA 25 8 Baillie Tank Equipment

8 Blackmer

8 Bornemann

8 Cashco 24 8 CB&I 5 8 EA Projects

8 Emco Wheaton

15, 17, 19

8 Emerson Fisher

8 Eurad

7 Outside Back Cover

8 Filtertechnik 81 8 Flexim 32 8 Flotech PS

8 Fort Vale

8 Franklin Valve

8 Hayward Baker

8 HMT

8 Honeywell Enraf

8 HTS

8 IFC Inflow

8 InCon 65

APRIL 2014

n 9-10th April FPS Expo 2014 Harrogate, UK A key event for the oil distribution industry in the UK and Ireland, FPS Expo will take place at the Harrogate International Centre. It will be attended by a range of senior professionals from across the UK, Europe and as far afield as the US to learn more about the latest industry innovations.

8 James Machine Works Inc 8 L&J Engineering

Front Cover, 61

8 Land & Marine

8 Leeco Steel

8 Lightning Master

8 Little Horse 8 Magnetrol

29 Inside Front Cover

8 Mesa 30 8 MHT 83

n 23-25th April NISTM: 16th Annual International Aboveground Storage Tank Conference & Trade Show Orlando, Florida The conference and tradeshow will be held at the Rosen Shingle Creek Hotel for three days. A golf tournament and welcome reception will take place on 22 April.

december 2013 Official magazine n 10-11th December Tank Storage Asia Max Atria, Singapore Expo This two-day conference and expo brings together terminal operators, traders, regulators and equipment suppliers. Technology on display at the exhibition includes everything from tank design, construction and maintenance, to innovations in metering and measuring, pumps and valves, and automation and loading equipment.

8 Ametek 80

8 Ergil

October 2013

n 21-24th October API Storage Tank Conference & Expo San Francisco, California The annual API Storage Tank Conference provides attendees with new information on tank-related research, latest technologies and API petroleum standards. The conference features multiple panels and speakers discussing the requirements to maintain tank integrity while complying with new and existing environmental rules.

111

8 Aile 86

8 Neda 43 8 NISTM

Inside Back Cover

8 Nordic Storage

8 NPMA

8 OHL Industrial

8 Opslagtanks 8 Oreco

May 2014

Official magazine

n 6-8th May Tank World Expo & Congress Dubai, UAE Over 60 exhibitors and 1,000 customers are expected to attend the expo next year, which is supported by industry players such as Saudi Aramco and Horizon Terminals. An unmissable event for suppliers of all tank farm civil, mechanical and instrumentation systems and services.

107 72

8 PDE 16 8 Pentair 58 8 PFT Alexander

8 Protego

8 Rosen

8 SafeCut 53 8 Saval

8 Scully

8 SGB 18 8 Silverwing

8 StocExpo 85 8 Tank World Expo

108

8 Todo 10 Tank Storage magazine (ISSN 1750-841X) is published six times a year (in January, March, May, July, September and November) by Horseshoe Media Ltd, Marshall House, 124 Middleton Road, Morden, Surrey, SM4 6RW, United Kingdom. The 2013 US Institutional subscription price is $240. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434. Periodical postage pending at Jamaica NY 11431. Subscription records are maintained at Horseshoe Media Ltd, Marshall House, 124 Middleton Road, Morden, Surrey, SM4 6RW, United Kingdom. Air Business Ltd is acting as our mailing agent.

112

8 Volcanic 33 8 W.E. Couplings

8 Wilks 14 8 Williams Valve

September/October 2013 • TANK STORAGE

16th ANNUAL

page header

INTERNATIONAL ABOVEGROUND STORAGE TANK CONFERENCE & TRADE SHOW

April 23-25, 2014 | Orlando, Florida

At NISTM 2014, independent and major terminal operators, manufacturers and suppliers will come together to redefine strategic vision and technical requirements for tomorrows’ terminals. Other industries with storage tanks at the show include but are not limited to pipeline, aviation, chemical, electric power generation, manufacturing, and the military. Nationally recognized experts will provide the latest information available on tank management in this three day course. You can get answers to your questions about the most recent issues and technological advancements and much more.

FREE

NISTM

NATIONAL INSTITUTE FOR STORAGE TANK MANAGEMENT

TRADE SHOW

VISIT:

www.NISTM.org

for more information and/or to register.

800.827.3515 | International 011.813.600.4024

TANK STORAGE • September/October

page header

NEVER COMPROMISE ON THE HEALTH OF YOUR STAFF, THE EASE OF OPERATIONS OR YOUR ORGANISATION’S SAFETY The world’s only industry certified cast aluminium reducing coupling for connecting loading arms or tubes with tankships. Up to half the weight of steel versions. The high 10% elasticity of the special aluminium alloy can prevent negative environmental impact caused by spill as a result of bursts, cracks or leakage. For lighter, easier and safe connections. ANSI CLASS 150# AND 300# | DIN PN10, PN16 AND PN25 | ANSI & DIN COMBINATIONS | PED CERTIFICATE PED 97/23/EC CAT III MODULE H MATERIAL CERTIFICATE EN 10204-3.1 | DYE PENTETRANT DIN 54152-1 | PRESSURE TEST DIN 50104 AND DIN 3230 | HIGH ELASTICITY OF 10% HIGHLY CORROSION RESISTANT | ALSO FOR QUICK-CONNECT COUPLER SYSTEMS

INDUSTRIAL VALVES CAST ALUMINIUM PRODUCTS

Call us at +31.13.571.71.70 Mail us at info@eurad.com

Visit us at www.eurad.com or at StocExpo Netherlands 2014 18 - 20 March | Stand J29

September/October 2013 • TANK STORAGE