The voice of the storage terminal industry
APRIL/MAY 2016 Volume 12 Issue No.2
BUSINESS WITH AN OPEN HEART AND MIND
Vopak looks at the next century in tank storage
FULFILLING A STORAGE NEED
A need for chemical storage has emerged as the Qatari economy grows
REGIONAL FOCUS: MIDDLE EAST
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APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
CONTENTS
Contents News TERMINAL NEWS 09
Europe
20 The Americas
32
24 Africa & Middle East 25 Asia 26 Incident report
Storage in the Middle East
36
27
Tank terminal update: Middle East
32 Doing business with an open heart and mind 34
Achieving the Omani refining and petrochemical dream
36
A one stop shop business
44
Hoarding for a rainy day
47
Fulfilling a need for chemical storage in Qatar
48
Independent storage operations in Oman
Market analysis
47 APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
38
Environmental protection of bulk liquid storage facilities
41
Specifying, procuring and managing third party inspection services
50
Fallout from low oil prices in the Middle East
51
Evolving the Dubai crude oil benchmark
01
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CONTENTS
Contents Events
71 Unlocking international markets Previewing some of the exhibitors at this year’s Tank World Expo in Dubai 80 Upcoming events 81 Advertisers’ index
63 71 Technical features 52
Technical news
56 Improving safety during loading and unloading operations of vessels 58 How to maximise terminal automation system ROI
67
61 Estimating – from days to minutes 63 The changing face of tank storage building 64 Fast acting double block and bleed isolation 67 The overall FRP solution for tank storage piping systems APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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CONTRIBUTORS
Contributors APRIL/MAY 2016 Volume 12 Issue No.2
Front cover courtesy of CTS Nederlands
PUBLISHER Margaret Dunn t: +44 (0)20 8843 8153 e: margaret@tankstoragemag.com
ONLINE & CONTENT EDITOR Jasmin McDermott t: +44 (0)20 8843 8159 e: jasmin@tankstoragemag.com
INTERNATIONAL SALES MANAGER David Kelly t: +44 (0)20 8843 8161 e: david@tankstoragemag.com
MARKETING PROJECT MANAGER Amy Jordan t: +44 (0)20 8843 8837 e: amy@tankstoragemag.com
DATABASE MANAGER Jourdan Roze t: +44 (0)20 8843 8828 e: jourdan.roze@easyfairs.com
SUBSCRIPTION MANAGER Alison Church t: +44 (0)20 8843 8800 e: alison.church@easyfairs.com
MANAGING DIRECTOR Matt Benyon t: +44 (0)20 8843 8813 e: matt.benyon@easyfairs.com
CONTACT
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(approximately $240/€185 depending on daily exchange rates.) Individual back issues can be purchased at a cost of £30 each.
@tankstorageinfo Tank Storage Magazine Tank Storage Magazine
Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2016 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 Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.
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Part of
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
Years
CONTRIBUTORS
Chemie Tech
of excellence
INGENIOUS BULK LIQUID STORAGE ENGINEERING SOLUTIONS
F R OM CONC E PT TO COMMI SS I ONI N G DELIVERING PROJECTS IN CHALLENGING LOCATIONS. GLOBALLY A Multidisciplinary International Engineering & Construction Company headquartered in United Arab Emirates delivering ingenious Engineering Solutions consistently to our Clients Globally. With the depth and breadth of technical expertise to respond to the complex challenges of the Bulk Liquid Storage Tank Terminal/Depots Design & Installation, Offsites & Utilities, Piping, Pipeline, Topside Facilities; We Deliver Quality Projects in time & in budget. Aptly skilled & equipped to provide a combination of front-end design, engineering, procurement, fabrication, construction, commissioning and operation & Maintenance services spanning across all phases of the project lifecycle. Whether it’s the concept for a New Storage Terminal, Multi Product Port Topside Facility, Pipe Matrix, the upgrade of an existing Offsite Facilities, Complex Piping Network, Structural Works, Equipment Erections Works or the improvement of an existing Terminal, we plan, engineer and enable cost effective solutions. Leave arduous Project Challenges to us; We Tackle & Deliver.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
T : +971 6 553 0776 E : bd@chemietech.com W: www.chemietech.com Middle East | Africa | Indian Sub Continent | Australasia |
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Americas
COMMENT
06
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
COMMENT
Insatiable storage appetite
T
he world is awash with crude, stockpiling oil has become a necessity and traders are still dancing the contango. The bloated, oversupplied market continues to bear golden fruit for the storage market as key storage hubs are brimming with product. OPEC and other oil producers are yet to reach a deal on whether to cap production and turn off the crude tap and the debate has ramped up ahead of a meeting between some of the world’s biggest crude producers. Russia and Saudi Arabia have agreed to freeze production, along with OPEC members Venezuela and Qatar. However Iran, whose export sanctions were lifted earlier this year, reportedly wants to regain its share of the global oil market before entering into such an agreement. Amid this rapid change in the market, storage operator Vopak is celebrating its 400th anniversary. In an exclusive interview, Vopak’s CEO explains how its business principles has ensured its continuing
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
success and how it is positioning itself for the next century in tank storage. The Middle East is proving to be a booming region for storage, with additional storage and refining capacity slated to become operational over the coming years. Within this issue, we provide comprehensive analysis of the market dynamics in this region, as well as having a closer look at projects in Oman and Fujairah with the likes of Oiltanking Odfjell Terminals Oman, Fujairah Oil Terminal and Third Coast International. This issue of Tank Storage Magazine will be travelling far and wide. In addition to being the official publication for Tank World Expo in Dubai, copies of the magazine will also be available at NISTM in Orlando and FPS Expo in Liverpool, UK. We hope you enjoy the read.
With best wishes, Jasmin
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TERMINAL NEWS l CONTENTS
Terminal news All the latest terminal storage news from around the globe
p10 Zenith acquires BP Amsterdam terminal
p20 Kinder Morgan completes BP terminals acquisition
p25 Vopak welcomes first LPG cargo to Singapore
Europe
THE AMERICAS
09 Inter Terminals’ proactive storage investment
20 Buckeye’s terminal segment drives performance surge
Kinder Morgan completes BP terminals acquisition
10 Thames Oilport investment acquisition complete
Macquarie Infrastructure experiences terminal revenue decrease
Zenith acquires BP Amsterdam terminal
22 US LNG export terminals increase as production grows
ICT Rubis completes first liquefied gases transloading
Magellan’s financials drop
Odfjell reports significant performance improvement
Growth for JP Energy refined products terminals
Tank capacity swells for LBC
12 VTTI’s favourable outlook thanks to positive terminal market
23 Gulf Coast alternative storage solution as Cushing builds
14 Rubis reports slight storage revenue decline
Refinery cuts fill St James tanks
Inter Pipeline’s bulk liquid segment surges
16 Stolthaven Terminals reports slight drop in financials
AFRICA & MIDDLE EAST
24 Completed tanks transported to Saudi Arabia
Rotterdam refinery acquired by Gunvor
18 Vopak benefits from advanced economies pickup
ASIA
For more news visit www.tankstoragemag.com 08
25 StocExpo Shanghai launched by Easyfairs
China delays strategic oil reserves storage
Vopak welcomes first LPG cargo to Singapore
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
TERMINAL NEWS l EUROPE
Inter Terminals’ proactive storage investment Inter Terminals has announced a multi-million Euro investment at its Asnaes Oil Terminal in the Danish Straits. The northern Europe bulk liquid storage operator says that it is taking a proactive approach to the continuing oil market contango by investing in large ship handling and oil storage capacity at the terminal located in the third most active channel for oil products in the world. As a result of dredging and improvement works at the main oil quay and jetty, drafts have been deepened to 11.5 meter and 14.2 meters respectively. The jetties can accommodate vessels of Aframax and Suezmax up to 180,000 tonnes. Additionally, two tanks are also being recommissioned, resulting in an additional 40,000 m3 of oil storage. AOT has a capacity of 430,000 m3 of products. Work at this terminal is part of a broader upgrade programme at Inter Terminals’ four terminals in Denmark. The company’s investment includes installation of mixers and blenders in heated fuel oil and vacuum gas oil tanks as well as radar-based tank gauging technology to enhance stock management systems. Chief executive Martyn Lyons says that demand for storage has been outstripping supply as the contango strengthens. He says: ‘Average utilisation rates across our European storage network in the first three quarters of 2015 were 93% compared with 77% for the same period in 2014. Our ongoing investment in this strategically important location means we are ready and able to meet the fast changing needs of the market.’
Tank capacity swells for LBC Construction work has started on additional stainless steel storage tanks at LBC Tank Terminals’ facility in Rotterdam. The company says that in order to meet increasing customer demand, it started construction work in February. In addition to expanding its jetty capabilities, capacity at the terminal will increase to 250,000 m3. The first 36,000 m3 expansion of stainless steel tanks has started and is expected to be operational in the first half of 2017. Railcar and truck loading facilities will also be upgraded to accommodate a large range of liquid chemicals. The facilities will be able to handle products requiring vapour treatment, mixing and blending as well as those requiring dedicated temperature control. The company says in a statement: ‘This innovative expansion matched the ambition of LBC to become the most efficient terminal in the Port of Rotterdam when it comes to ship-to-shore interface and ship-turnaround times.’
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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TERMINAL NEWS l EUROPE
Thames Oilport investment acquisition complete Vopak has completed the sale of a 33.3% investment in the Thames Oilport joint venture to Greenergy. The joint venture (formerly the Coryton refinery) is still under development and has not yet been commissioned. This is the first of two transactions regarding the sale of all Vopak’s UK assets to Greenergy and Macquarie Capital. The second transaction is expected to be completed by the end of the first quarter in 2016.
Zenith acquires BP Amsterdam terminal
ICT Rubis completes first liquefied gases transloading ICT Rubis has completed its first direct transloading operations of liquefied gases from a vessel into block train. The facility in Antwerp, which is suitable for transloading C3 and C4 gases directly from vessel into rail tank cars or block trains, is now fully operational. In addition to offering storage and transhipment of liquefied gases, the company can now transload these products. No tank is required during the operation, the vessel pumps the product directly into the rail tank cars through a pipeline via a loading arm. This development will play a major role in shifting volume from road transportation to the more efficient and ecological rail transport mode and will contribute to the reduction of CO2 emissions within the port. Additionally, rail infrastructure has also been expanded and there are now eight loading station positions as well as extra rail tracks.
Zenith Energy has acquired a multi-million barrel liquids storage facility in Amsterdam from BP. The international liquids and bulk terminaling company is due to take ownership of the terminal asset by the end of the first quarter 2016 following a transition process. The facility is located on the North Sea Canal within the ARA region and has a storage capacity of more than six million barrels for petroleum, ethanol, middle distillates, biodiesel, kerosene and LPG. It has capabilities for sophisticated blending, connectivity for ocean vessels, inland waterway and trucks, a deep draft for oceangoing tankers up to 135,000 tonnes with multiple berths for barges and ships. In an interview with Tank Storage Magazine Jay Reynolds, chief commercial officer, says: ‘This asset is a highly strategic one in terms of its location and access to deep water. ‘It has a significant position serving the local market and it has got a very good position in the local motor fuel distribution business. BP will remain a significant customer of the terminal after transferring ownership across. ‘We are very excited to own it and to be working with BP going forward.’ Another attractive feature of the facility is the opportunity for further expansion projects. This is something that Zenith will look to capitalise on in the future. Reynolds adds: ‘The expansion capability was one of the factors in us deciding to acquire the asset. ‘We do not have any immediate plans but we have several potential opportunities to expand the facility.’ The company has had its sights firmly set on entering the ARA market since it was formed in August 2014 and has ambitions to expand even further into this internationally-renowned storage hub. ‘There is significant growth potential – we hope to eventually have an asset in each of the key markets in the future,’ says Reynolds. Zenith’s asset portfolio includes the Bantry Bay terminal in West Cork, Ireland, acquired from Phillips 66 and a new multi-product liquids terminal in Colombia – a joint venture with Grupo Coremar.
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Odfjell reports significant performance improvement Odfjell’s underlying performance significantly improved in 2015 thanks to the completion of its cost-cutting and efficiency programme. In its preliminary 2015 full year report, the storage operator recorded a full year EBITDA of $190 million compared to $96 million the previous year. Additionally, its cost-cutting programme Project Felix, was successfully completed ahead of target with more than $100 million in annual savings. In its fourth quarter results, the company summerised that it experienced stable underlying operational performance however, there were softer markets towards the end of the quarter. Its terminals segment was stable however there was a $2.5 million write-off relating to a greenfield project in China. Its Rotterdam facility has commitments for new contracts that will ramp up during the first half of 2016 and utilise the majority of the distillation capacity for 2016. Odfjell’s tank terminals business delivered an EBITDA of $11.4 million, up from $9.9 million in the previous quarter. Performance was driven partly by revenues at its PID distillation units in Rotterdam, Bay 10 in Houston and continued high demand for spot and mid-term storage related to the contango in the oil markets. Occupancy rates remained static at 94%, the same as the previous quarter and there was a 36,420 m3 increase in available capacity. In Tianjin, the company expects that there will be further delays in obtaining the required operating permits as a result of the explosion in the old harbour last year. A one-off charge of $2.5 million was made in relation to the valuation of the greenfield project at Odfjell Terminals Quanzhou. Looking ahead, the company expects its 2016 results to improve as a result of strong PID distillation activity and better storage results at Odfjell Terminals Rotterdam and stable results for the other terminals.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
TERMINAL NEWS l EUROPE
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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TERMINAL NEWS l EUROPE
VTTI’s favourable outlook thanks to positive terminal market A positive international terminal market has contributed towards VTTI Energy Partners’ strong operational performance. Rob Nijst, CEO of VTTI says that across the company’s portfolio, storage capacity was close to 100% utilisation thanks to strong customer demand and a ‘supportive market backdrop’ as a result of contango pricing in a number of oil products. He adds: ‘The fall in commodity prices has no direct impact on our business model and the key drivers of our business, global product demand and intra-regional flows, are continuing their long-term upward trajectory.’ Total operating income for the fourth quarter was $28.1 million and net income was $6.5 million. Adjusted EBITDA for the fourth quarter was $47.6 million, compared to the fourth quarter of 2014 of $50.1 million. The company says that despite a strong underlying trading performance, results were impacted by a reduction in excess throughput revenue versus the comparative period for last year. The decrease in excess throughput revenues was driven by a change in the volume distribution mix across customer contracts however, utilisation and throughput levels remained high. Looking ahead, Nijst says: ‘The outlook for VTTI is very positive, with strong demand for international storage capacity driven by a supportive
market environment and favourable underlying macro trends. Our targeted distribution growth remains unchanged and VTTI continues to pursue actively both greenfield and brownfield opportunities to add to our dropdown inventory.’
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TERMINAL NEWS l EUROPE
Rubis reports slight storage revenue decline Overall storage revenues at Rubis Terminal for 2015 declined by 2% despite a 0.6% increase in the fourth quarter. In the fourth quarter, the company’s Rotterdam facility delivered a strong performance with a growth of 15% in recorded revenue. The terminal experienced a 7% increase in chemicals storage while heavy fuel oil revenues increased by 3%. The Antwerp and Ceyhan terminals recorded a growth of 2%. In France, the petroleum business was virtually stable set in a broader French market where consumption of petroleum products was down 2%. Total chemicals revenue in northern Europe increased by 5% which reflects the sector’s ‘robust momentum’ in this region.
Inter Pipeline’s bulk liquid segment surges Inter Pipeline’s storage segment generated record funds from operations in 2015, according to the company’s annual statement. The segment generated $98.3 million in 2015 – a 30% increase compared to 2014 results. This is due to the acquisition of Inter Terminals Sweden in June 2015 and strong demand for storage services across the business segment. Overall utilisation rates for 2015 averaged 94%, compared to 79% in 2014. Higher utilisation rates were experienced across all terminals, led by the company’s Danish facilities where stronger contango pricing
relationships for certain petroleum products continued to drive favourable results. Within this segment, fourth quarter funds from operations totalled $28.2 million, a 79% increase compared to the fourth quarter of 2014. Utilisation rates were 97% compared to 84% in the comparable quarter of 2014. In 2015, the company generated record funds from operations of $774 million, representing a 37% increase over 2014 results.
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TERMINAL NEWS l EUROPE
Stolthaven Terminals reports slight drop in financials Total products handled and average storage and throughput revenue at Stolthaven Terminals dropped in the fourth quarter of 2015. Fourth quarter operating revenue for the terminals segment was $52.2 million, compared with $54.0 million in the third quarter. The average terminal capacity at Stolthaven’s owned terminals increased slightly to 1.62 million m3. Utilisation also increase to 86.9% however, total product handled slipped by 1.7%, while average storage and throughput revenue per cubic meter of leased capacity per month dropped by 1.8%. Operating profit for the fourth quarter was $2.6 million, down from $6.4 million in the third quarter. This was due to impairment of goodwill in New Zealand as well as accelerated depreciation of certain terminal assets in Australia and New Zealand. The fourth quarter included write-offs of certain assets, accelerated depreciation and settlements of
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customer claims as well as additional maintenance expense in Houston. Equity income from the company’s non-consolidated joint venture terminals decreased by $2.2 million in the fourth quarter, partly due to a dilution loss related to Norterminal AS, following the addition of a new partner in its subsidiary, Norterminal Floating Storage AS, and the continued closure of Stolthaven’s joint venture facility in Lingang, pending renewal of the operating license following the explosion in the Port of Tianjin in August. Niels G Stolt-Nielsen, CEO of Stolt-Nielsen, says: ‘Poor results at Stolthaven Terminals were attributed to accelerated depreciation of certain assets and continued actions to enhance efficiency and improve profitability at Stolthaven Houston, though the underlying dynamics of the storage market remain solid.’
Rotterdam refinery acquired by Gunvor
The Kuwait Petroleum Europoort refinery in Rotterdam has been acquired by Gunvor Group. The acquisition from Kuwait Petroleum International means that the refinery can continue to operate in line with Gunvor’s integration and optimisation strategies. As part of the transaction, the refinery will be named Gunvor Petroleum Rotterdam and will be integrated into Gunvor’s existing European refinery network, which includes refineries in Antwerp, Belgium and Germany.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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TERMINAL NEWS l EUROPE
Vopak benefits from advanced economies pickup The positive market sentiment for oil products in Europe, the Middle East and Africa helped drive Vopak’s revenue growth by 5%. The leading independent tank storage company reported that revenue in 2015 surged by €63.5 million to €1,386 million compared to €1,322.5 million in 2014. This increase in revenues was mainly driven by a higher average occupancy rate primarily in the Netherlands and EMEA due to positive market sentiment however, these were partially offset by the effect of the company’s nine divestments and a decrease in revenues in China and Singapore. Both of these markets were faced with a more competitive and dynamic spot market and changes in the product mix, resulting in lower occupancy rates. EBITDA increased by 6% to €812 million and the company’s global storage capacity increased by 500,000 m3 to 34.3 million m3 during the last year. During 2015, Vopak commissioned 2,244,600 m3 of new capacity, the most notable of which include Pengerang Independent Terminals phase 1C of 413,000 m3 of capacity, an oil terminal in Hainan in China, with a capacity of 1,350,000 m3 and the first phase of an associate industrial chemical terminal in Jubail in Saudi Arabia. However, taking into account divested terminals, the company’s overall capacity growth was 507,800 m3. Eelco Hoekstra, chairman of the executive board and CEO of Vopak, says: ‘We are pleased with the good progress made with the optimisation of our terminal portfolio in 2015. Through the divestment pro-
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gram, together with the commissioning of new terminals and capacity expansions at existing terminals, we have further strengthened our global network and improved our competitive service offering. ‘We observed a gradual pickup in advanced economies and a slowdown in emerging markets and developing countries. In North America, the underlying drivers for acceleration in consumption and investment remained intact. ‘Further, the economic recovery in Europe has developed positively, with a robust improvement in domestic demand. However, this year was dominated by China’s uncertain growth perspective, increased economic sensitivity to lower commodity prices and the heightened geopolitical tensions in certain regions. ‘Despite these challenging market developments, we were able to deliver robust financial results supported by the positive FX effect. ‘Global imbalances, long-term contracts and effective supply chain positioning continue to be the main drivers behind the strong demand for our infrastructure services. The lower price environment contributed to the higher occupancy rate in the Netherlands and EMEA and increased market interest for our newly commissioned oil terminals in Asia. Overall demand for chemicals remains healthy, supported by increase in GDP, population growth and rising wealth levels.’ Read our full and exclusive interview with Vopak’s CEO on page 26.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
TERMINAL NEWS l AFRICA & MIDDLE EAST
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TERMINAL NEWS l THE AMERICAS
Buckeye’s terminal segment drives performance surge
Kinder Morgan completes BP terminals acquisition
Strong demand in the tank storage market helped Buckeye Partners to deliver strong financials for the fourth quarter of 2015.
A total of 15 refined products terminals have been acquired by Kinder Morgan from BP Products North America.
The company reported that income from continuing operations for the quarter was $135.1 million compared to $64 million from 2014. Adjusted EBITDA from continuing operations for the fourth quarter was $244.5 million compared to $223.5 million for the same quarter in 2014. Clark Smith, chairman, president and CEO, says: ‘Buckeye’s outstanding fourth quarter and full year financial results further demonstrate the benefits of our diversification strategy and the strength of our position in the market. ‘We were able to capitalise on strong demand in the market to increase utilisation of our storage assets at a higher contracted rates.’ In December 2015, the company announced the commissioning of a 50,000 barrel per day condensate splitter facility in Corpus Christi. Construction is expected to be complete but the end of the first quarter of 2016.
The terminals are key distribution facilities for major refined products consuming markets and have approximately 9.5 million barrels of storage. Kinder Morgan and BP Products North America have also formed a joint venture limited liability company terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the joint venture’s behalf. The 15th terminal will be owned and operated solely by Kinder Morgan. Kinder Morgan owns a 75% interest in the joint venture and BP owns the balance. The transaction is valued at around $350 million and includes approximately 160 former BP employees. John Schlosser, president of Kinder Morgan, says: ‘By combining BP’s expertise in product trading and marketing with Kinder Morgan’s strength in operations and terminal development, the joint venture is well suited to take advantage of growth opportunities in high-demand refined petroleum products markets.
Macquarie Infrastructure experiences terminal revenue decrease Macquarie Infrastructure Corporation’s International Matex Tank Terminal segment experienced a decrease in revenue. The company says that the revenue decrease was a result of decreased spill response activity at OMI Environmental Solutions, reduced heating revenue and a reduction in rail services provided by IMTT. However, these were offset by improvements in firm commitments including increased utilisation rates of 94.9% at year-end 2015 compared with 92.5% for the same period in 2014. The company says that costs controls and efficiencies achieved since the IMTT acquisition in 2014 contributed to a decrease in expenses of 12.3%. Savings have been achieved in insurance and procurement, with the application of technology and improved controls generally. Refined petroleum product storage and handling represents around 55% of IMTT’s total revenue. Crude and asphalt storage represents approximately 3% of IMTTs total revenue and IMTT reported a decrease in services provided in support of these products in the fourth quarter and full year primarily as a result of a reduction in product shipments by rail from Canada. James Hooke, CEO of MIC says: ‘The performance of IMTT in both the quarter and the full year periods reflects the downstream services nature of the business overall, as well as the extent to which it is uncorrelated with the exploration and production portion of the oil industry. ‘While the upstream E&P companies are under considerable financial pressure, the vast majority of the hydrocarbons stored at IMTT have already been refined.’
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APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
TERMINAL NEWS l THE AMERICAS
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TERMINAL NEWS l THE AMERICAS
Growth for JP Energy refined products terminal
US LNG export terminals increase as production grows The growth of natural gas production in the US over the past decade has prompted the development of LNG export terminals.
JP Energy Partners has started work to expand its existing rail facilities at its North Little Rock refined products terminal.
The EIA observes that with the rapid growth of supply from shale gas resources over the past decade, US natural gas production has grown each year since 2006. The decline in domestic natural gas prices has led to rising natural gas exports, both via pipeline to Mexico and to overseas markets via LNG tankers. Currently, the US is a net importer of natural gas, and gross imports represented nearly 10% of total supply in 2015, based on data through November. The US imported 7.5 billion cubic feet per day of natural gas, mostly from Canada by pipeline, and exported 4.8 bcf/d, mostly to Mexico by pipeline. In addition to the Sabine Pass terminal, four other LNG export terminals are currently under construction. Several LNG import terminals were built in the 1970s, and a new wave of terminals was constructed in the mid- to late-200s. As domestic production increased, LNG imports declines, as many new terminals were barely used and the utilisation rates of older terminals declined. The four export terminals currently under construction are Dominion Energy’s Cove Point LNG facility in Maryland, Cheniere’s Corpus Christi LNG project, Sempra Energy’s Cameron LNG terminal in Louisiana and Freeport LNG in Texas. These terminals are expected to take advantage of natural gas produced in the Appalachian Basin, particularly the Marcellus and Utica regions – the source of much of the nation’s production growth over the past several years.
The upgrade, which will allow for unit train deliveries of ethanol, will improve the terminal’s ethanol offloading efficiency and capacity. The project will utilise existing infrastructure at the site, including up to 4.5 million gallons of ethanol storage and will be capable of blending and distributing up to nine million gallons per month. The terminal offers a full suite of blending capabilities onsite. Seperately, JP Energy has executed an interconnection agreement with an affiliate of Magellan Midstream Partners to connect JP Energy’s North Little Rock facility to Magellan’s Little Rock Pipeline. The interconnection will allow JP Energy’s customers to deliver the terminal via Enterprise Product Partners’ TEPPCO pipeline or Magellan’s Little Rock Pipeline, providing access to both Gulf Coast and Midcontinent refineries. J. Patrick Barley, executive chairman and CEO of JP Energy says: ‘The Magellan interconnection will provide our customers with greater operational flexibility for product deliveries for multiple production zones. ‘Our ability to leverage our existing infrastructure at the site will allow us to provide the lowest cost ethanol in Central Arkansas and beyond.’
Magellan’s financials drop Magellan Midstream Partners recorded a decrease in net income in its fourth quarter financials due to reduced profits and lower realised commodity prices. The company reported a net income of $207.1 million for the last quarter 2015 compared to $252.1 million for the same period in 2014. This was driven by reduced profits from the partnership’s commodity-related activities, due to lower realised commodity produces on these activities and market-to-mark pricing adjustments for the related hedging positions. However, this was partially offset by higher contributions from Magellan’s core fee-based transportation and terminal activities. The company’s crude oil operating margin was $95.2 million, an increase of $6.4 million. Transportation and terminals revenue increased by $10 million, primarily due to contributions from the 40-mile Houston crude oil pipeline that Magellan acquired in November 2014, more shipments on the partnership’s Longhorn pipeline system and new leased storage contracts. Michael Mears, CEO, says: ‘Despite the downturn in energy markets, Magellan generated record distributable cash flow for both the fourth quarter and the full-year 2015, driven by the benefit of recently-completed expansion capital projects and continues strong demand for our fee-based refined products and crude oil pipeline and terminal services.’ ‘Magellan’s business fundamentals remain sound, with our stable
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business model, investment-grade balance sheet and attractive slate of growth projects position us well to remain strong in the current energy environment.’ During 2015, the company spend $666 million on organic growth construction projects and $81 million to acquire an additional Atlanta terminal and a 100-acre tract of land in Corpus Christi, Texas for future development. The partnership expects to spend $800 million in 2016 and $100 million thereafter to complete its current slate of construction projects. Magellan continues to evaluate multiple options to increase its Gulf Coast marine capabilities, including additional storage at its Galena Park marine terminal and further development of its Seabrook Logistics joint venture and its recently-acquired land in Corpus Christi.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
TERMINAL NEWS l THE AMERICAS
Gulf Coast alternative storage solution as Cushing builds
Refinery cuts fill St James tanks
As inventories at Cushing reach near maximum capacity, stocks at US Gulf Coast facilities continue to build.
A refined products glut in the US Midcontinent has resulted in tanks at St. James to fill as refinery run rates decline.
According to Genscape, so far in 2016, inventories in Houston, Beaumont-Nederland and Corpus Christi, have increased by nearly seven million barrels and are only 739,000 shy of the record high level reached in October 2015. Lower waterborne crude loadings have also contributed to the recent increase in Gulf Coast stocks. As of February 19, 2016 Gulf Coast domestic waterborne loading volumes were 34% lower than the beginning of the year and 36% lower than 2015
average loading volumes. Additionally, fewer loadings have left the Gulf Coast. Since the crude export ban was lifted in December 2015, a handful of waterborne shipments have shipped from the Gulf Coast for destinations in Europe however, these shipments are being displaced from pre-existing destinations, such as refinery markets in eastern Canada. Therefore, total outgoing waterborne volumes from the Gulf Coast have not significantly increased since the ban was lifted.
Oilfield Machinery and Automation Inc.
Crude oil stocks in St. James, Los Angeles soared by 1.9 million barrels to a record high the week ending February 26, and could continue to increase if crude demand falls further at Midcontinent refineries, according to Genscape. Oil analysts Dylan White and Amanda Fairfax Dirkes say that Valero Energy has cut production at its Memphis refinery in early February to combat weak profits. Sources estimate that the refinery may decrease crude processing by 25%. The St. James storage build week ending February 26 coincided with decreased outgoing crude pipeline volumes.
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TERMINAL NEWS l AFRICA & MIDDLE EAST
Completed tanks transported to Saudi Arabia A total of 13 stainless steel tanks were shipped to Arabian Chemical Terminals’ chemical storage terminal in Jubail. The tanks, constructed by SJR at its production facility in Bolnes, the Netherlands, were transported by barge to the Broekman Break Bulk Terminal at Waalhaven in the Port of Rotterdam before being loaded onto heavy cargo ship Big Lift Happy Delta. Weighing in excess of 900 tonnes, the tanks, nine of which have a capacity of 1,350 m3 and the remaining four with 2,700 m3 of capacity, will be installed by SJR following the 24 day transport. The addition of these tanks will almost double capacity at the terminal, which currently has 26 tanks. Once complete the facility will comprise 39 tanks supported by two marine berths. Kasper Castricum, terminal and business operations manager at ACT, says: ‘Tank that are built inside are of better quality than tanks built on site. The short lead time and fast delivery were of crucial importance.’ ‘We are also particularly happy with the fact that the tanks are not being built in an operations zone at the terminal as this avoids risks and downtime.’
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TERMINAL NEWS l ASIA
StocExpo Shanghai launched by Easyfairs Artexis Easyfairs has launched a new tank storage event in Shanghai to complement its global portfolio of industry events. StocExpo Shanghai will be the world’s largest dedicated even for the Chinese storage terminal industry. Despite news concerning the slowdown in its economy, China has been identified as a key region for oil storage up until 2040, and according to the IEA, it will add almost 350 kb/d to global demand on average per year and is the key driving force behind the growth in global oil consumption. In 2015, China also became the world’s largest crude oil user, making StocExpo Shanghai perfectly placed to serve key storage regions. The country has 9,500 tanks and more than 189 million m3 of capacity. Additionally, Shanghai currently holds 31% of the country’s total capacity. Nick Powell, event manager of Easyfairs’ tank storage portfolio says: ‘Given the magnitude of the Chinese market, it seems only right that Easyfairs has picked this as its next market. ‘We have already experienced a huge appetite for the Chinese market and we know that there is plenty of room for growth, so expectations surrounding this show are huge, both internally and externally.’ The event will take place at The Shanghai World Expo on November 2 and 3, 2016. In addition to the two day show, featuring leading manufacturers and suppliers from across the industry, there will also be a conference to discuss storage issues in China. For more information on the exhibition and conference visit www.stocexposhanghai.com.
Vopak welcomes first LPG cargo to Singapore
The first Southeast Asia independent LPG storage facility has received its first cargo.
Vopak’s Banyan terminal received the cargo from the Sun Aries vessel, which will deliver fully refrigerated propane to ExxonMobil Asia Pacific, one of the anchor tenants of Vopak’s terminal in Singapore. The facility has an initial capacity of almost 80,000 m3 and is an 80/20 partnership between Vopak Terminals Singapore and SK Gas International. Tan Soo Koong, managing director of Vopak Terminals Singapore, says: ‘We are very happy with the successful start-up of our new LPG facility within our Banyan terminal. We are very well positioned to capture the flows of LPG coming from US and Middle East and our independent LPG facility is geared towards becoming a strategic gas centre in the future.’
China delays strategic oil reserves storage Completion of China’s strategic oil reserves has been pushed back to beyond the original 2020 deadline. According to Bloomberg, China will finish construction of the second phase of its strategic stockpiles and will begin preliminary work on additional sites by 2020, according to the 2016-2020 Five Year Plan. Previously, the plans stipulated that the three phases would be completed by the end of 2020. The first phase of China’s storage build was completed in 2009, comprising four sites totalling 91 million barrels. The second phase, comprising 168 million barrels, has been delayed, but was due to be completed in 2015.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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INCIDENT REPORT
Incident report
A summary of the recent explosions, fires and leaks in the tank storage industry
26/2/2016
Billing County, North Dakota White Rock Oil and Gas
A pipeline leak 18 miles northwest of Belfield spilled around 2,000 gallons of saltwater and oil. The state’s health department estimated around 40 barrels of saltwater and eight barrels of oil spilled at a site operated by White Rock Oil and Gas. Officials said that an undetermined amount of saltwater and oil flowed into a stock pond. The health department and the state oil and gas division worked quickly to monitor and assess the spill and clean it up.
5/2/2016
Pasadena, Texas Petrobras
A diesel unit at a refinery ruptured and caused an explosion which damaged a 35,000 bpd light cycle oil hydrotreater. The blaze, which started just after 10am CT, was contained by mid-afternoon. All other units at the facility were not affected however, an operator was taken to hospital. Air monitoring was conducted by Pasadena Refining and Harris County Pollution Control, which showed no indication of any off-site impacts.
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2/3/2016
Ekhabi oilfield, Northern Sakhalin, Russia Rosneft
Around 110 barrels of oil spilled from an idled pipeline on the Pacific island. Rosneft said that it decided to burn the spilled oil to minimise ecological damage, with large plumes of smoke spotted by local residents. No-one was injured in the incident.
28/2/2016
Jefferson Parish, Louisiana Delta Petroleum
Approximately 900 gallons of waste lube oil was accidentally discharged into a canal that divides Orleans and Jefferson parishes. A cleanup crew was deployed on March 2nd to prevent the oil from going into a pumping station owned by the sewerage and water board despite reports that it had been contained. Crews used absorbent booms to keep it away from the facility. The company hired an oil spill response organisation to collect the spilled lube oil.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
Tank terminal update: Middle East VTTI Fujairah Terminals
Cylingas (ENOC subsidiary)
Location
Fujairah, UAE
Location
Fujairah, UAE
Products
Crude oil, black oil
Products
Naphtha, diesel, gas oil, fuel oil and kerosene
Capacity
430,000 m3
Capacity
101,000 m3
Construction/ expansion/ acquisition
A crude oil storage facility is being built alongside the current 1.2 million m3 facility
Comment
Completion date
April 2016
Comment
The terminal will have supporting special processing facilities for a global energy supplier
Vopak & SABIC Location
Jubail Chemicals Storage Services Company, Jubail, Saudi Arabia
Products
Petrochemical
Capacity
The joint venture will build a total of 570,000 m3 of additional capacity in two phases
Construction/ expansion/ acquisition
Beginning of 2016
Comment
The current facility has more than 1.3 million m3 of capacity
ORPIC & CLH Location
Al Jifnain, Oman
Products
Diesel, petroleum, jet fuel
Capacity
171,000 m
3
Construction/ expansion/ acquisition:
Construction/expansion/acquisition: The facility, which will form part of a larger oil distribution centre, will have 12 tanks
Investment
$320 million (â‚Ź296 million)
Comment
The terminal will help to build the logistics infrastructure needed for the supply of oil products
Orpic Logistics Company Location
Muscat, Oman
Products
Refined products
Capacity
Construction/ expansion/ acquisition
Construction/ expansion/ acquisition
170,000 m3 The new storage terminal will be supported by a multiproduct pipeline – the first of its kind commissioned in the country
Completion date
2017
Investment
$320 million
Comment
It is hoped the terminal will supply 50% of fuels in Oman
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
The 20 aboveground storage tanks sit within a new petroleum regeneration and processing plant The plant and terminal have pipelines connecting it to the Port of Fujairah jetty
ATS Terminal Location
Hamriyah Free Zone, UAE
Products
Class 1, 2, 3
Capacity
20,000 m3
Construction/ expansion/ acquisition
The facility is doubling its storage capacity with plans to expand further
Comment
On top of this expansion, the operator has planned further development in 2016 and 2017 as it is currently only using 30% of its available land
Oman Tank Terminal Company Location
Minal Al Fahal, Oman
Products
Crude oil
Capacity
2.1 million barrels
Construction/ expansion/ acquisition
The floating storage facility is an interim storage solution until the Ras Markaz Crude Oil Park is built and operational
Comment
The facility, developed in partnership with OSC, Petroleum Development Oman and the DME, is the first in the world linked to an energy futures contract
Gulf Petrochem Location
Fujairah, UAE
Products
Class 1 products
Capacity
243,280 m3
Construction/ expansion/ acquisition
The expansion will be spread across 17 tanks of varying sizes
Investment
$50 million
Comment
The expansion, due to start in April 2016, will also involve the construction of two new jetty lines and will cater to black and white oil products
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Tank terminal update: Middle East Gulf Petrochem
Jubail Chemicals Storage and Services Company
Location
Rotterdam
Location
Jubail, Saudi Arabia
Products
Specialty chemicals
Products
Chemicals
Capacity
35,400 m3
Capacity
348,000 m3
Construction/ expansion/ acquisition
Completion date
14 tanks have been delivered to the facility as part of the first phase of the expansion project October 2016
Investment
â‚Ź120 million
Comment
The total expansion comprises 45 tanks with a capacity of almost 150,000 m3 – doubling current capacity
Construction/ expansion/ acquisition
JCSSC is set to acquire the newly constructed facility from Sadara Chemical Company
Comment
The facility supplements the 220,000 m3 port terminal and related port facilities that are currently under construction
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 addtitional terminal information for future issues, please email: jasmin@tankstoragemag.com.
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APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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PROFILE l VOPAK
DOING BUSINESS WITH AN OPEN HEART AND MIND As Vopak celebrates its 400th anniversary, Tank Storage Magazine speaks to its CEO about how it is positioning itself for the next century in tank storage 01
T
he key to success when conducting business in international markets is to do business with an open heart and an open mind according to Vopak CEO Eelco Hoekstra. Since the 17th century, the world’s leading independent storage terminal operator has abided by two core business principles, which have been crucial in its continuing success in the market. The first has been to have an open mind when conducting business in international markets by understanding different cultures and perspectives to build mutually beneficial relationships and the second is to establish clear rules and regulations and dissolve trade barriers. Hoekstra explains that Vopak’s ongoing business strategy is based on three pillars – growth leadership, where assets are in the right locations for future trade flows, operating assets based on safety, service and costs and finally provide services relevant to your customer base. Looking to business over the next 100 years, he explains that in order to stay ahead in this industry, the company seeks to stay ahead of the competition by closely examining and predicting global trade flows of its key commodities. ‘When we look at developing our global assets, the decision on where to invest depends on how the world will change and progress. Five years ago we embarked on a journey to become better than average on predicting global flows. ‘We have developed a framework on where we believe supply and demand will fall. We will continuously keep a profile of terminals we believe are relevant for the future.’ The company’s 2014 divestment strategy has enabled the company to fully optimise its terminal portfolio and plough the funds accumulated in areas it has identified as part of its future growth strategy. So far, nine smaller terminals have been divested in Europe and the US out of a total of 15 globally. INVESTING IN THE FUTURE In 2015, 2.2 million m3 of new capacity was commissioned, notably in Malaysia’s Pengerang Independent Terminals phase 1C, a joint venture terminal in Hainan in China as well as a chemical terminal in Jubail, Saudi Arabia. Once complete, all other projects that have been announced will swell the company’s global capacity by 4.2 million m3 up to 2019. Future investments for Vopak will be generally governed by four categories that have been
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02
identified as part of the operator’s growth strategy. Hub terminals, such as those in Houston, Singapore, Fujairah and the ARA region, have been identified as key investment locations principally due to the transparency of these markets as well as the presence of other operators and industries. Industrial terminals linked to manufacturing will also be the target of Vopak’s future investments as well as facilities involved in the storage of gases such as LNG and propane. Additionally, ‘major shorts’ are also part of the
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
PROFILE l VOPAK 03
01 Vopak Terminal Europoort in the Netherlands 02 Newly commissioned petroleum tankage in South Africa 03 Vopak CEO Eelco Hoekstra 04 Newly commissioned LPG tankage in Singapore
ROYAL VOPAK AT A GLANCE: Its global terminal network totals 34.3 million m3 spread across 74 terminals in 24 countries The operator stores and handles a variety of different oils, gases, chemicals, biofuels and edible oils During 2015, taking into account recent divestments and investments, the operator’s global capacity increased by 500,000 m3 Development projects up to and including 2019 will increase its capacity by 4.2 million m3 The first mention of Vopak’s oldest forerunner, Blauwhoedenveem dates back to the 17th century storage operator’s future ambitions. These are countries where there is not sufficient ground to build a refinery, or the refining industry is nearing the end of its life cycle, such as is the case in Australia, where imports are satisfying more of the country’s demand. In its 2015 annual report, the company predicts that occupancy rates in 2016 could exceed 90% thanks to its varied product groups supported by healthy contract coverage and supply chain positions. DIFFERENT DYNAMICS The storage landscape has significantly evolved during Vopak’s 400 years, making the company adept at adapting to continued change. Hoekstra observes that the dynamics of storage have shifted since the end of the past decade thanks to an influx of capital from expansion funds, infrastructure funds and private equity. Another change has been increased transparency. ‘Transparency on how business is conducted globally is increasing. ‘The rules and regulations in which the industry operates are getting stricter. The regulatory environment concerning how companies are performing is more intense and that is a good thing. ‘The industry handles a lot of products that are not only valuable but also damaging to the environment so with that comes a huge responsibility and we at Vopak see that very clearly.’ While the plunge in oil prices and the persisting contango have dominated discussion, these market conditions have not greatly influenced the operator’s performance.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
Out of 34.3 million m3 of capacity, half is dedicated to oil and the majority of its terminals are linked to long-term supply and demand. ‘Where we have seen the biggest change is the fact that refineries have become more profitable and the demand for oil is going up again. The liquidity of the oil markets has been higher than before. ‘Where people buy and lock the tanks for fixed periods is a very small part of our system and it will come to an end as it is a very cyclical business. ‘Our view is that if we want to serve our core business, we should focus on the quality of our assets and not the quantity. If you build for growth then the cycle will eventually turn against you.’ GREENING OF ENERGY Recent climate change talks in Paris have also prompted the industry to consider the future ‘greening’ of energy. However this is just the start of a wider debate on renewable energy. ‘We need to be mindful that within this energy transition, hydrocarbons will continue to be used. Also, this energy transition will take place over time and whatever the route is, it needs to be one that is sustainable.’
04
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MARKET ANALYSIS l MUSCAT SOHAR PRODUCT PIPELINE
ACHIEVING THE OMANI REFINING AND PETROCHEMICAL DREAM
Andres Suarez
T
he two-way multi-product Muscat Sohar Product Pipeline (MSPP) is the first of its kind to be constructed in Oman and will help to satisfy the growing demand for fuels in the Sultanate. The region is of particular interest to the tank storage community as additional storage and refining capacity will grow the region as an oil hub in the global market. In an interview with Tank Storage Magazine, Andres Suarez, general manager at Orpic Logistics explains how the pipeline will add further value to Orpic and enable it to be a leading performer in its sector. HOW WILL THE MSPP IMPROVE THE DISTRIBUTION OF OIL PRODUCTS TO THE REGION? Orpic (Oman’s Oil Refineries and Petroleum Industries Company SAOC) was created to integrate the operations of Mina Al Fahal Refinery, Sohar Refinery, Aromatics Plant and Polypropylene Plant. It is one of Oman’s largest companies and one of the most rapidly growing businesses in the Middle East oil industry. Orpic’s refineries in Sohar and Muscat, as well as the Aromatics and Polypropylene Plants in Sohar, provide fuel, chemicals, plastics, and other petroleum products, to Oman and the world. To achieve Orpic’s vision of building an Omani integrated refining and petrochemical business, the company has undertaken diversification and embarked upon three strategic projects – Sohar Refinery Improvement Project (SRIP), Muscat
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Sohar Product Pipeline (MSPP) and Liwa Plastics Industries Complex (LPIC). These project will grow our capacity to meet the needs of Oman and international markets. Muscat Sohar Product Pipeline and Al Jifnain Terminal project will enable the connection of Orpic’s Mina Al Fahal (MAF) Refinery in Muscat and Sohar Refinery with a new storage and distribution terminal located in Jifnain via a bi-directional pipeline network. The pipeline network is split into three sections: MAF – Jifnain Terminal: 40 kms (10 inches), Jifnain Terminal – Muscat International Airport: 30 kms (10 inches), and Sohar – Jifnain Terminal: 220 kms (18 inches). Apart from meeting the domestic demand for fuel, which is growing at approximately 5 to 10% per annum, this project will deliver numerous social, economic and environmental benefits. WHAT OTHER BENEFITS WILL COME FROM THE MSPP PROJECT? Upon commissioning in 2017, the Al Jifnain Terminal will deliver more than 50% of Oman’s fuel via the storage facility. This is a first-ofits-kind project to be undertaken in Oman – removing the need for Orpic to ship refined products, and bringing a new level of efficiency and lower costs to its business. Due to the reduction in reliance on fuel-tank truck transportation, in and around Muscat, heavy fuel-tank truck traffic in Muscat is expected to drop by 70%. The project is being executed by Orpic Logistics, a joint venture between Orpic and Compañía Logística de Hidrocarburos (CLH). MSPP project will be the first of this kind in Oman. HOW DO YOU EXPECT THE DEMAND FOR OIL PRODUCTS TO GROW IN THE REGION? Despite low prices of crude oil and refined products, that intuitively would represent an increase in the oil products demand, for the Sultanate of Oman, a country highly dependent on oil exports, this situation may slow down the growth of the economy and therefore the consumption of oil products. Further, the prices of oil products in Oman, regulated by the government, have been increased in the beginning of 2016 and this could
also have an adverse effect on the consumption of oil products. Nevertheless, it is still too nascent to conclude that the demand is being affected. WHERE WILL THE DEMAND FOR THE PIPELINE COME FROM REGIONALLY? The products to be transported through the multiproduct pipeline network will come from Orpic’s two Refineries – Mina Al Fahal in Muscat and Sohar Refinery in Sohar. However, the existing refineries and the Sohar Refinery expansion to be commissioned by the end of 2016 will ensure that the oil products demand is covered by national production at least for the next five years. The MSPP project is the first investment of Orpic Logistics but opens the door for new projects that may include pipeline connectivity with neighboring countries to increase the security of supplying oil products within the region and to facilitate the export of these types of products. HOW WILL MSPP IMPROVE TERMINAL EFFICIENCY AT ORPIC LOGISTICS? The operation of Al Jifnain Terminal is based on highly automated processes which brings significant security to the logistics operations. The implementation of a fully automated philosophy is new to the Sultanate and is being fully supported by Orpic stakeholders. Despite the challenges that this type of operation represents, all parties are convinced that in the long term the benefits will be significant for all and that a win-win situation can be achieved. It is also noteworthy to mention that the new operations are being undertaken keeping in mind Orpic’s core value of minimising impact to the environment and that equipments like the vapor recovery unit or the oily water treatment system will mitigate environmental impact across our operational areas. Additionally, the facility will be equipped with proactive measures to prevent any type of incident and with mitigation and automated equipments that would act in case of an emergency. All these equipments, along with the control system will ensure a proper management of all the processes in order to provide value added services to our customers.
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PROFILE l XXXXXX XXXXXX
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PROFILE l FUJAIRAH OIL TERMINAL
A ONE STOP SHOP BUSINESS As the third largest oil storage and petroleum products trading centre and second largest bunkering port in the world, Fujairah is in vogue in the storage industry
F
ujairah Oil Terminal FZC (FOT) broke new ground as the first independent crude oil storage terminal in the Middle East and seeks to capitalise on its coveted position within the influential storage hub. Nestled close to the Port of Fujairah, a thriving oil products trading hub, the facility boasts 1.17 million m3 of capacity spread across 34 tanks and despite land constraints making it difficult to expand with ease, the company has its sights firmly set on future expansions. In an interview with Tank Storage Magazine, commercial director Malek Azizeh, says that the area is an attractive proposition for traders and operators, principally due to the range of services and the level of connectivity at the port of Fujairah. ‘Fujairah offers the trading environment a one stop shop of services. You can bunker, trade and maintain your vessels – other ports in the region have not yet reached that level of service. ‘It is commercially designed – you can transfer products back and forth to each other and traders can buy from each other and can then easily transfer the product without the need for a ship via the Port’s matrix manifolds. ‘You pay a premium to be in Fujairah as there
01 The facility benefits from enhanced connectivity at the Port of Fujairah 02 The region is an attractive prospect for traders and storage operators
FUJAIRAH OIL TERMINAL AT A GLANCE: The facility can store crude oil, fuel oil, gas oil and petroleum It also offers blending of crude oil, fuel oil and clean products It is supported by deep draft jetties of up to 25 meters Since commissioning, the facility has recorded a 100% utilisation on its capacity
are large storage capacities and a variety of terminals.’ As a result of growing volumes through the port, in 2015, the Port of Fujairah set a new personal record and achieved just over 50 million tonnes of throughput. This has helped position the region as the third largest oil products hub, and its location close to the Strait of Hormuz, the world’s most important oil transit chokepoint reinforces its importance. Additionally, the continued focus on diversification in Fujairah is resulting in investments being made in the downstream sector including product specialty chemicals, bitumen and biofuels refineries as well as chemical storage.
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Azizeh says: ‘In terms of location, Singapore might be better than Fujairah because you cover the whole of Asia. But Fujairah is taking on Singapore because it has the connectivity features between all the various terminals via a common user matrix manifolds which Singapore lacks. ‘Fujairah has managed to link them all together and this is very crucial. Fujairah is bringing something new to the market.’ FOT is owned by China’s Sinopec (50%) Australia’s Prostar Capital (40%) and Government of Fujairah (10%). FOT is considering expansion options and currently evaluating future market outlook to build the most suitable tanks for the future. As crude storage and throughout volumes are gaining momentum thanks to Adnoc’s large crude storage facility (8 million barrels) and the Port’s considerable investment in the Very Large Crude Oil Carriers (VLCC) berths, many terminals in Fujairah are now considering building crude tanks instead of the traditional refined products tanks which is the majority of Fujairah’s current capacity. ‘There are plenty of things happening in Fujairah, a new refinery will be coming into operation and Vopak has a project which will be commissioned imminently as well as IPIC’s announcement for building a 200kbd refinery ‘There is also the positive spin from the lifting of Iranian sanctions is that oil traders will be looking to supply and receive products from Iran and as a result there will be even more demand for storage in Fujairah.’
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PROFILE l FUJAIRAH OIL TERMINAL
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MARKET ANALYSIS l ENVIRONMENTAL PROTECTION
ENVIRONMENTAL PROTECTION OF BULK LIQUID STORAGE FACILITIES An updated version of the Energy Institute (EI) guidelines on environmental management for facilities storing bulk quantities of petroleum, petroleum products and other fuels has been published
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he document has been produced to take account of new guidance and standards released since the previous edition, including the Health and Safety Executive (HSE) Process Safety Leadership Group (PSLG) final report: Safety and environmental standards for fuel storage sites (2009) and Chemical and Downstream Oil Industries Forum (CDOIF) guidance: Environmental risk tolerability for COMAH establishments (2013).
ENVIRONMENTAL ISSUES The publication provides guidance on managing environmental issues involved in the lifecycle (i.e. design, construction and commissioning, operation and decommissioning) of bulk storage facilities. It provides management, technical and operational guidance to minimise the impact of bulk storage facilities on the environment through the use of an iterative, risk-based approach, helping facilities to meet regulatory requirements and good practice. The guidance is aimed at facility owners/operators, designers, regulators and environmental specialists who are working with bulk stores of petroleum, petroleum products, or other fuels, and similarly to those with bulk stores of other chemicals. RESTRUCTURED GUIDANCE The third edition has been restructured to assist the reader by aligning with their different needs, which are primarily driven by where the facility is in its lifecycle and an understanding of the key concepts of environmental protection (including an overview of the regulatory regime and risk assessment process). A flow-chart has been introduced to the third edition to guide the reader to the relevant sections within the guidance document. GOOD PRACTICE The guidance distinguishes between the good practice which should be applied on all sites with bulk stores of petroleum or other fuels and those specific requirements which may be placed on a facility. These fall under the ‘Seveso III’ Directive (Directive 2012/18/EU of the European Parliament and of the Council of 4 July, 2012 on the control of major-accident hazards involving dangerous substances, amending and subsequently repealing Council Directive 96/82/EC), which is implemented in Great Britain through The Control of Major Accident Hazards (COMAH)
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01
01 A tank being jacked up to replace a leaking base with a new one 02 The new base has a imervious membrane and telltale pipe
Regulations 2015, which came into effect on 1 June, 2015. Commentary has been provided on the application of COMAH-specific guidance to sub-COMAH sites, for example in the use of qualitative rather than quantitative risk assessment. Considerations for specific site uses (e.g. for rail loading/ unloading) are also separated and discussed to ensure readers can easily identify the relevant guidance for their facility operations. Two key changes in the third edition address human and organisational factors and tertiary containment. HUMAN AND ORGANISATIONAL FACTORS Human factors is the practice of designing systems and processes to account for the interaction with the people who use them. The guidance emphasises the need to incorporate human factors into a facility’s design so as to
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MARKET ANALYSIS l ENVIRONMENTAL PROTECTION
recognised as being both a driving force which supports the operation of a bulk storage facility and can provide good evidence of a facility being operated in an environmentally responsible manner.
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TERTIARY CONTAINMENT Tertiary containment relates to the system and measures intended to contain product and other liquids that may escape as a result of a loss of secondary containment and would otherwise be released in to the environment causing pollution. The guidance reinforces the need for effective containment systems at bulk storage facilities, drawing on the issues raised in HSE PSLG final report and the COMAH containment policy following the Buncefield incident in 2005. These advocate not just containment for an individual tank or group of tanks but to a ‘whole-site’ approach to afford an overall level of protection in the event of an incident, including consideration of fire-fighting liquid volumes.
minimise opportunities for human failure, which could result in an environmental impact (e.g. by improving the layout and labelling of pipework and control valves). The guidance notes that the more human interaction required for a given task, the greater the need for a more stringent level of management oversight, particularly as routine operations are inherently vulnerable to human failure. Thus, a strong environmental management system is
FOR MORE INFORMATION This article was written by Ben Raine (Arcadis). Copies of the publication can be purchased from the Energy Institute website, www.energypublishing.org/
The Energy Institute (EI) is the chartered professional membership body for the global energy industry, providing learning and networking opportunities, professional recognition and energy knowledge resources for individuals and companies worldwide. It serves society with independence, disseminating knowledge, skills and good practice towards a safe, secure and sustainable energy system. www.energyinst.org
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PROFILE l XXXXXX XXXXXX
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49M022016H APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
MARKET ANALYSIS l REGULATIONS
SPECIFYING, PROCURING AND MANAGING THIRD PARTY INSPECTION SERVICES A new users’ guide from EEMUA concerns the differences between in-house and third party inspection bodies
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new users’ guide(1) from the Engineering Equipment and Material Users Association (EEMUA) addresses the perceived differences between the use of in-house and third party inspection bodies and provides for operators to build their own working practices for specifying, managing and procuring third party inspection services. Although primarily based around UK legislation, which allows for operators to utilise their own user inspectorates as well as external organisations in their integrity management, operators with plant in countries other than the UK will also find the guide informative. PRIMARY CONTAINMENT ENVELOPE There is a self-evident requirement for the owners and operators of a process plant handling hazardous materials to maintain the primary containment envelope and ensure that risks from leaks and other incidents are minimised. A major element in maintaining the integrity of the primary containment is timely and effective inspection, the purpose of which is to identify defects before they are able to develop and lead to an uncontrolled loss of containment. In some companies, particularly the larger petrochemical organisations, the primary containment is monitored by in-house, or second party inspection bodies, while others employ the contracted services of outside organisations referred to as third party inspection bodies. As it is unlikely that a
second party inspection body will always be able to do all the inspection work required by their parent organisation there will often be a mix of second party inspection body and third party inspection body involvement. The recent increase in emphasis on inspection as part of a risk control strategy has resulted in a need to ensure that the service provided by inspection organisations is suitable for the particular application. In addition, the British Health and Safety Executive (HSE) has recently highlighted concerns with companies who engage third party inspection bodies for specific tasks and who fail to recognise the wider issues related to the control of risks from other or associated hazards. As a consequence the HSE has identified potential differences in company risk control arrangements when second party inspection bodies and third party inspection bodies are employed. It has also identified issues related to differences in plant operational knowledge between second party inspection bodies and third party inspection bodies that can also influence the quality of the information at the disposal of the inspection bodies when formulating inspection recommendations. EEMUA’s ‘Specifying, procuring and managing third party inspection services’ has been developed as a result of these perceived differences. It is intended to provide guidance to companies using second and third party inspection bodies and to assist in the development of the contractual and managerial
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relationships between the inspection bodies and the process plant owners and operators. It is also intended to provide guidance to those organisations with their own inspection body as the relationship between the two is similarly important. The guide has resulted from requests from EEMUA members* to provide a basis on which they could build their own working practices, and it should not be seen purely as a document written for the benefit of the regulator. DEFINITION OF DIFFERENT INSPECTION BODIES An inspection body is an organisation that provides inspection services to process plant operators. It must have its own management structure but can be a part of another, larger organisation provided it is sufficiently independent to be able to offer an authoritative technical opinion free from financial or production pressures. An inspection body can be: • Part of an organisation that designs and builds process plant (first party inspection body); • Part of an organisation that operates such plant (second party inspection body, or user inspectorate); or • A specialist organisation providing inspection services alone (third party inspection body). The international standard to which most inspection bodies conform, ISO 170203, defines these inspection bodies as Type A, B or C. The in-service inspection of process plant is
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MARKET ANALYSIS l REGULATIONS
normally provided by a second party inspection body or third party inspection body or some combination. In some large companies the majority of inspection will be conducted by an in-house inspection department, i.e. a second party inspection body. However, it is very likely that such an organisation will have to routinely employ third party inspection bodies to provide specialist services or even more simple services at busy periods. ISSUES WITH THIRD PARTY INSPECTION BODIES Historically, inspection requirements for items of plant or equipment in widespread use throughout industry were specified in law and tended to be based on fixed interval inspections often aligned to major shutdown or holiday periods. This tended to suit third party inspection bodies as they used their extensive knowledge of potential failure modes for similar plant used in many industrial applications and could arrange inspections to coincide with these fixed intervals. Increased reliance on risk based inspection (RBI) techniques has resulted in much more variation in inspection intervals and the need for the inspector to be aware of more complex degradation mechanisms linked to operational parameters. There is also a need to comply with more stringent legal requirements covering health, safety and environmental concerns. This leads to more complex contractual arrangements between the inspection body and the customer. A significant difference between second party inspection bodies and third party inspection bodies can be that the former have a much closer relationship with the plant operators than is possible with the latter and therefore potentially a better understanding of plant operating history. This is often because the relationship between a process plant operator and the third party inspection body is contractual and therefore has to be arranged before a contract is placed. This disadvantage can be reduced when the third party inspection body is resident on the site, or by careful design of the contractual arrangements. However, the closer relationship between second party inspection bodies and customers needs to be handled with care to preserve the required degree of independence from production or financial pressures. Some industry sectors rely exclusively on third party support while in others it is established practice for in-house second party inspection organisations without accreditation to produce detailed inspection programmes that are then reviewed by and certified as suitable by an accredited third party organisation. This latter third party organisation approves the written schemes and supporting documentation and reviews examination results in order to grant approval for continued operation as the competent person. There are some advantages in having a third party approval of such inspections and written
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schemes of examination in that in-house decisions are scrutinised by an organisation accredited to act as an independent competent person and able to demonstrate a degree of independent decision making from the customer. However, there are potential areas of concern relating to communication with third party competent persons, who may not have a permanent presence on site and potentially be unaware of operational changes, maintenance issues and repair history. It is therefore necessary to involve the third party inspection body in routine site meetings and reviews of documentation.
The guide is intended to provide guidance to companies using second and third party inspection bodies
and setting a number of targets to be met. The new EEMUA guide complements and builds on the CDOIF document, providing more detail on the concepts and how the targets can be achieved. Throughout both the CDOIF guidance and EEMUA guide it is assumed that the contractor is providing inspection services in the widest sense. They cover all stages from agreeing what is to be inspected and how, through to completing the report and certifying that the equipment is fit for service or that it requires further work to ensure its continued safe operation. The EEMUA guide describes in some detail what is required from an inspection body and why it has to be provided. It is particularly important that the various responsibilities involved are made clear so a table is provided, that can be used as a check list if required, to allow these responsibilities to be clearly allocated. This can then form the basis of a contractual arrangement in a way that will minimise the risk that an important aspect is neglected or overlooked. Similarly, both the CDOIF and EEMUA publications concentrate on the technical relationship between the plant operator and the third party inspection body. It is envisaged that the contractual arrangements will formalise these relationships in a legal framework; no attempt has been made to define how the contracts should be worded as this will depend to a large extent on the particular policies of the companies involved. However, some guidance is given on the process of agreeing the contract.
The principles therefore still hold of ensuring good definition and understanding of the roles and responsibilities for all those involved in integrity management including operators, maintenance departments, in house and third party inspection organisation and third party competent person organisations who grant approval for continued operation until the next examination. In many instances third party inspection bodies are the engineering arm of insurance companies and the inspection can be seen as an appendage to an insurance contact. This means that there is a risk that the contract details are not specified sufficiently accurately to maximise the integrity of the plant primary containment. It is thus important to ensure that the contract placed for services includes sufficient detail to ensure that the inspection is carried out competently.
REFERENCES (1) EEMUA Publication 232: ‘Specifying, procuring and managing third party inspection services’ (2) CDOIF Guidance: ‘The use of external contractors in the management of ageing plant’ * EEMUA members are the users of engineering equipment and materials. They manage industrial process plants, power stations, offshore platforms, storage terminals and other industrial facilities right across the globe. ** EEMUA is a member of CDOIF (Chemical and Downstream Oil Industry Forum), a UK body made up of representatives from industry, trade unions, and the regulators, which aims to promote and lead key sector process safety initiatives.
AVAILABLE GUIDANCE The concerns with third party inspection bodies highlighted by the HSE were first addressed by the Chemical and Downstream Oil Industries Forum (CDOIF)** in its short guidance document(2) aimed at improving the relationship between the plant operators and the third party contractors. That guidance is intended as an overview, conceptual in format
FOR MORE INFORMATION ‘Specifying, procuring and managing third party inspection services’ (EEMUA Publication 232) can be bought (digital download or printed copy) from the EEMUA shop, www.eemua.org, or sales@eemua.org. EEMUA members can download for free a digital edition of the new guide on the EEMUA website.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
PROFILE l THIRD COAST INTERNATIONAL
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MARKET ANALYSIS l STORAGE IN THE MIDDLE EAST
HOARDING FOR A RAINY DAY Regional storage companies are exploiting the flash-growth of the crude oil spot market. Criselda Diala-McBride reports
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s the price of oil continues its downward trajectory, and the world finds itself awash with crude, traders have learned to dance the contango, shunning futures in favour of the spot market. With oil losing more than 75% of its value since mid-2014, the incentive to buy and store oil now – in the hope of making a profit later when the market eventually recovers – has become greater than ever. Meanwhile, for traders, stockpiling oil has become a necessity, despite storage fees rising in the US from $0.10 per barrel in August 2015 to $0.90 per barrel on February 9 2016, according to Market Realist. As OPEC and other oil producers have yet to reach a consensus on whether to turn off the tap, demand for storage is expected to remain robust. The latest data from the International Energy Agency (IEA) indicates that commercial stockpiles of crude oil in countries within the Organisation for Economic Co-operation and Development was 350 million barrels above average, at more than three billion barrels as of the end of December 2015, with inventories anticipated at the time to build up further in January.
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‘The market is definitely oversupplied, and deliveries from Iran, exports from the USA and even the high level of storage across different parts of the world, are factors that would make oil prices bearish,’ says Abhay Bhargava, associate director, energy and environment practice at Frost & Sullivan. In the Middle East, major producers’ crude oil output capacity was estimated at 24.58 million barrels per day (bpd) during the fourth quarter of 2015, and was forecast to reach 25.05 million bpd by the first quarter of 2016, according to the IEA. While storage hubs, such as Cushing in Oklahoma, have reported inventories brimming to capacity, terminals in the Middle East are continuing to pour money into expanding capacity to meet the oil market’s insatiable appetite for storage. DIRTY STORAGE ON THE UP A spokersperson for Aegean Oil Terminal confirmed that the company ‘wishes to have more storage for dirty products’ at its Fujairah facility to meet growing demand. ‘We operate both clean and dirty product
storage, but since launching our terminal in January 2015, we have seen storage demand for dirty products pick up, and this has been a strong focus for our company,’ he says. Aegean’s experience reflects a boom in the dirty oil trade, where average dirty tanker freight rates increased by 3% in January 2016, compared to December 2015, according to OPEC’s oil market report for February 2016. The conglomerate says the uptrend was influenced by a 25% month-on-month hike in freight rates of Suezmax-class tankers, which are capable of carrying as much as one million barrels of oil. Aegean Oil Terminal has been one of the regional companies raking in the benefits that the low oil price and an oversupplied market have brought. ‘A contango condition has definitely contributed to higher storage demand and we expect the trend to continue well into 2016,’ the spokesperson says. Muthukrishnan Prabakaran, global head of terminals at Gulf Petrochem also attributed his company’s recent success to the oil market being in contango. ‘By adopting sound principles of inventory management and efficient risk-management policies, we were able to optimise inventory holdings, while also capturing the opportunities emerging from the contango impact,’ he says. Demand for bulk liquid storage in 2015 was also intensified by increased trading activity within the Middle East, as well as a shortfall in storage capacity, which was needed to absorb normal levels of production, Prabakaran explains. Gulf Petrochem – which last year announced plans to invest $80 million in 2016 to expand its facility in Fujairah and acquire new terminals in East Africa – is bullish about the near term prospects for the Middle East bulk liquid storage industry. ‘We remain fully committed to our principles and long-term vision. Our forecast is in line with
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MARKET ANALYSIS l STORAGE IN THE MIDDLE EAST
that of analysts across the region and we are geared up to adjust to any fluctuating market conditions,’ he adds. FLOATING STORAGE SAILS AWAY With Iran entering the global oil market after years of international economic sanctions, Abhay Bhargava of Frost & Sullivan believes that demand for Middle East super-tankers will start to wane as the country offloads its stagnant supplies. ‘Iran is now seeking to mobilise deliveries,’ he says. ‘The country has been by far the largest consumer for floating storage within the Middle East. We have also seen many suppliers from Africa opt for this kind of storage. However, this has been on account of their inability to find buyers rapidly enough, resulting in a demand for floating storage in the broader Middle East-Africa region.’ In January, after sanctions on Iran were lifted, the country promptly dispatched a VLCC to South Korea, carrying around two million barrels of oil. Energy market data provider Genscape says 29 million barrels of crude were monitored leaving Iran in the two weeks at the end of January, bringing the country’s total exports for that month to between 33 and 37 million barrels, compared with the 34 million barrels recorded in December 2015. According to Reuters, Iran has more than 40 million barrels of crude and condensate in 20 to 25 vessels, as sanctions dampened the appetite of buyers. Each of those super-tankers can hold between one million and two million barrels of oil. As the country takes full advantage of its new economic freedom, authorities announced a 15 million barrels per month increase in oil production. But Iran exports are not the only factor that will have a profound influence on the Middle East storage sector in the coming years, according to Bhargava. ‘The downstream sector’s robust activity will also have a significant impact on the industry,’ he says. ‘While we cannot comment on strategic storage in the region, what is certain is that as the downstream sector builds up the market will definitely see pressure on the existing storage capacity, which would simply not be able to keep up with the total demand for storage of crude and other hydrocarbon products.’ Low price gas feedstocks have allowed the Middle East’s petrochemical industry to rapidly grow over the past 30 years, McKinsey & Company says. ‘The Middle East petrochemical industry has come very far, very fast. From the first joint-venture plant in 1981, the industry has expanded to a total annual petrochemical production of 121 million tonnes in 2012,’ the company says. ‘Capturing the gas flows associated with oil production that were previously flared, and instead channelling those flows as very low-priced feedstock for chemical production, has made it possible to build an immense and highly profitable industry.’
With global ethylene demand projected to increase by more than 40 million tonnes per year, to reach 175 million tonnes by 2020 and nearly 210 million tonnes by 2025, McKinsey & Company believes that the Middle East petrochemicals market is poised to grow further. CAPACITY ENOUGH TO MEET DEMAND Muthukrishnan Prabakaran is confident that the Middle East and North Africa region has enough storage to satisfy market demand. ‘Considering the overall storage capacity available in the MENA region and their levels of occupancy, it is fair to assume that the inventory build-up and continuing operations will meet the region’s entire demand,’ he says, without reference to figures. In the next two to five years, Gulf Petrochem is eyeing a number of investments to beef up its oil and petrochemical storage capacity. The company has commissioned its new Hamriyah Terminal in Sharjah with a storage capacity of 250,000 m3, of which 204,000 m3 will cater to other classes of petroleum products, such as petrochemicals, lubricating base oil, fuel oil and bitumen. ‘We are also augmenting our existing storage capacity in Fujairah by a further 250,000 m3, catering to all classes of products, as a result of 100% occupancy in our existing terminal,’ he says. ‘Upon completion of the expansion of our terminal in Fujairah, and with our existing storage facilities in Hamriyah and Pipavav in India, the group will boast a total capacity of over 1.1 million m3.’ Gulf Petrochem, he adds, is also seeking opportunities for both greenfield and brownfield acquisitions, as well as expansions in other regions such as Africa, Sri Lanka and Malaysia. MORE PROJECTS UNDERWAY In other parts of the GCC, Oman is building an ambitious bulk liquid berths terminal in Duqm. Local reports suggest that the estimated $1 billion contract will serve as an ‘outgo port for the Duqm Refinery’, which is a 230,000 bpd capacity greenfield project being developed within the Special Economic Zone Authority at Duqm (SEZAD). In January, the SEZAD started accepting prequalification bids for the project, which will include the construction of a liquid terminal, with handover expected in early 2019. The Duqm terminal will cater to the petrochemical industries and other liquids related trade activities in the region. State-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) announced that it is also planning to invest around $80 million in the development of a national fuel storage terminal at Al Jinain, which is 20 kilometres from Muscat International Airport. The facility will be adjacent to the existing crude oil pipeline route that connects two refineries located in Mina Al Fahal and Sohar. Fujairah is expected to expand its oil storage
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capacity by 75% in 2020. The Port of Fujairah, which lies along the Strait of Hormuz – an important oil export route in the Gulf region – has seen storage facility building increase since 2009, according to Reuters. By 2020, the port’s capacity is expected to rise by 6 million m3 to reach 14 million m3. The European Bank for Reconstruction and Development also announced that it has extended a $94 million loan to Egyptian company Sonker to finance the construction and operation of a bulk liquids terminal for the import and storage of gasoil, liquefied petroleum gas and liquefied natural gas in the third basin of Ain Sokhna Port. ‘The new infrastructure will accommodate the docking of two floating storage and regasification units, and the handling of LNG imports to the nearest national gas grid,’ EBRD says. The entire project will cost $341 million, with the remaining funding to be provided by the International Finance Corporation, which is a member of the World Bank Group. EXPANDING FOOTHOLD Meanwhile, the Abu Dhabi National Oil Company says that it will store six million barrels of oil in Mangalore and Andra Pradesh in India. As part of the deal, ADNOC has agreed to give two thirds of the stock to the Indian government. Frost & Sullivan’s Bhargava says that ADNOC’s decision is not a reflection of storage capacity utilisation in the UAE. ‘It is a strategic move on the part of a supplier – in this case, the UAE – to gain proximity to a large buyer, in this case, India,’ he explains. ‘To understand this, we need to first examine how oil flows transpire – a large percentage of this flow is essentially from the Middle East, in particular oil-producing countries in the GCC, Iraq and Iran, to Asian countries such as India, Japan, China and South Korea.’ Bhargava says similar arrangements have been done in the past. He cited a move by the UAE and Saudi Arabia to store more than six million barrels of crude in Japan for free, ‘while holding a first right of refusal arrangement’ with the country. A similar deal was also struck between Kuwait and South Korea. He says there are two major sources of growth opportunities in the MENA bulk-liquid storage sector. ‘The first would come from the considerable developments in the downstream refining and petrochemicals sectors,’ he says. ‘This is expected to result in an increased demand for storage space for liquids, both for feedstock [and] finished products, prior to their export.’ Bhargava believes the unabated oil production of regional producers, in a bid to protect market share, will lead to greater demand for storage. ‘In these scenarios, we see an emergence of a well-rounded opportunity landscape for storage solutions, across multiple product types, ranging from crude to chemicals,’ he says.
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PROFILE l XXXXXX XXXXXX
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2016 API TANKS, VALVES, AND PIPING
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APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
PROFILE l THIRD COAST INTERNATIONAL
FULFILLING A NEED FOR CHEMICAL STORAGE IN QATAR As the Qatari economy continues to grow, the need for an independent chemical storage terminal is essential for continued development
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flourishing Qatari economy has helped spur on the development of more independent chemical storage in the country to support continued development in the country. Third Coast International Qatar was created in 2013 to capitalise on the favourable market dynamics in Qatar for chemical storage, and two years later 28 gleaming tanks have been constructed and are now on stream. It is currently in advanced negotiations with several companies and agreements are expected shortly. The additional tanks at the company’s joint venture partners’ existing facility – Qatar Lubricants Company – enhance the facility’s profile from a lube blending plant with 6,000 m3 of storage and two pipelines to a specialty chemical terminal offering storage, transloading, blending and packaging services. In an interview with Tank Storage Magazine Martin Staley, vice president Europe, Middle East and Africa at Third Coast International, explains that significant natural resources in Qatar and neighbouring countries have helped foster the development of the downstream petrochemical industry over the past 50 years. He says: ‘Qatar is well known for having the third largest gas reserves in the world and neighbouring countries are also endowed with significant natural resources. ‘Kuwait was the first country to begin production of gas-based chemicals in 1967 and this was then followed by other countries through the 1970s and 1980s.’ The company, which is a member of the Gulf Petrochemicals and Chemicals Association (GPCA), serves the petrochemical, oil and gas industries of the Gulf Cooperation Council national members. In addition to more tanks, the company has invested in a new and expanded laboratory and offers full analytical and quality control services. A new blend reactor for high viscosity products has also been installed along with a new packaging line for drums and IBC’s. PETROCHEMICAL DEMAND When looking at demand for petrochemical storage on a regional basis, Staley says that new chemical capacity continues to be brought on line is supporting market fundamentals. 01
‘Obviously the major multinational chemical companies are key customers along with more regional producers,’ says Staley. ‘The next major group of customers would be chemical distributors and traders who may need regional storage outside their core markets. ‘The Middle East has new chemical capacity that is being brought on line but some large scale projects have been cancelled in the region so the outlook at times can be unclear.’ The plunge in oil price has added pressure to the downstream chemical industry, and Staley says that this will have an impact on demand with companies cancelling projects. ‘We have seen some companies postponing investments in new storage capacity and related infrastructure and this may continue for some time until oil prices recovery and confidence returns.’ Looking to the future the company plans to expand the pipeline infrastructure running in and out of the terminal to the berth as more bulk vessel movements are predicted. Additionally, plans are in place for a phase two investment, which will entail the construction of more storage tanks. ‘During our analysis of the market in the region we identified a need for a professional, independent terminal operation in Qatar. The petrochemical storage markets in Saudi Arabia and Jebel Ali are currently well served with a number of professional operators. As the Qatari economy continues to grow having a facility which can store and handle chemicals safely is essential for the continued development of this country.’ 01 A photo during the first phase of construction at the site
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02 The expansion took place at Qatar Lubricants Company 03 A new and expanded laboratory has also been constructed
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PROFILE l OILTANKING ODFJELL TERMINALS OMAN
INDEPENDENT STORAGE OPERATIONS IN OMAN
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trategically positioned at the entrance of the Arabian Gulf, Oiltanking Odfjell Terminals Oman (OOTO) is carving a niche as the only independent terminal in the country. The facility, which is the only liquid operator in the Port of Sohar, supports trade and cargo flows within the Middle East as well as product flows from the Gulf to other continents and regions. Despite economic turmoil affecting the country, Oman is a crucial conduit for trade routes to Europe, Asia and Africa. OOTO plans to capitalise its coveted position within this key trading market by further enhancing its service offering. Executives have embarked on a terminal optimisation plan, a $20 million investment, which will allow OOTO to reduce its jetty occupancy by almost 15%, increase the pump capacity as well as increase flexibility in terms of blending and stripping. Additionally, the storage operator plans to increase its storage capacity by almost 10% to develop Sohar as a fuel hub. In an interview with Tank Storage Magazine, commercial manager Roderick de Rooij explains that the connections to Sohar Refinery, as well as a strong customer portfolio and strong joint venture partners, namely Oiltanking, Odfjell and Oman Oil, are part of the facility’s success story. ‘The strategic location of Sohar benefits our customers as they are close to the markets, but also close to other ports like Fujairah and Jebel Ali. ‘Oman is in the centre of many trade routes. Looking at the region, it could be interesting for customers to store crude oil in terminals in Oman and blend a specific grade that meets the demand of a certain refinery. ‘In terms of refined products, there is no added value to build a tank terminal further away from the main markets in the Arabian Gulf, being Iraq, Pakistan, Iran and Saudi Arabia.’
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Despite an increase in regional projects that are dependent on liquid feed stocks, 70% of the 17 million MT throughput at the Port of Sohar is generated by the international traders who supply neighbouring countries with gasoil and petroleum. Demand for storage at OOTO’s facility comes from international traders who operate in the Arabian Gulf region. De Rooij explains: ‘Additionally, blending components are being shipped in from all over the world and blended to a specific grade of fuel for the regional markets.’ Continued population growth and the resulting demand for fuel as well as refinery shutdowns, the current market structure and the recent lifting of the Iranian export sanctions have all reflected favourably on demand for storage in the region. However, De Rooji adds that this contrasts with the negative impacts on storage demand, namely additional refinery capacity, economic turmoil and conflicts elsewhere in the region. ‘Oman is developing a world class port in Sohar which is setting to herald a new era for the Sultanate.’
OILTANKING ODFJELL TERMINALS OMAN AT A GLANCE: 01 OOTO is embarking on a terminal optimisation plan
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02 The facility is the only liquid storage operator in the Port of Sohar
The facility 1.36 million m3 for the storage and handling of petroleum products, chemicals and gases It operates six liquid jetties connected to the Sohar Refinery, AOL Aromatics plant, OMC Methanol plant and OOTO’s tank farm. Services include tank-to-tank transfer, pipeline transfer, truck/ISO container loading, circulation, blending and homogenising and injection of additives.
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MARKET ANALYSIS l XXXXXX XXXXXX
NTD Contractor for Welded and Bolted Storage Tanks Atlas Tank provides above ground storage tank construction, repair, and maintenance services to the following industries:
Atlas Tank Overview Atlas Tank is a member of the TF Warren Group of Companies with exceptional experience in the storage systems industry. As a single source solution contractor, we provide the highest level of safety, quality, and on-time performance in every aspect of a project. With a national reach throughout the United States, Atlas Tank is well positioned to deliver unsurpassed tank construction, repair, and maintenance service to terminals and storage facilities. Using our engineering, procurement, construction, and management (EPCM) approach, we utilize the expertise of our professional teams with our single point of contact project management system to exceed our clients’ expectations.
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Our engineers are experts in API standards including 650 and 653 as well as AWWA. We provide the following products:
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Welded Tanks . Bolted Tanks . Flat Bottom . Double Bottom . Sloped/Dished Bottom . Low Temperature .
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Atlas Tank integrates best practices in the areas of health, safety, and environmental protection along with schedule adherence, quality products and services through the utilization of its project management / operating systems to provide total customer satisfaction.
Atlas Tank 10559 Geiser Road Holland, OH 43528
Email: sales@atlas-tank.com Phone: 419-865-4010 Fax: 419-865-4060
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We are a union contractor and signatory to the NTD Boilermakers Agreement for new construction and tank repair. www.atlas-tank.com 49
MARKET ANALYSIS l OIL PRICES
FALLOUT FROM LOW OIL PRICES IN THE MIDDLE EAST Amrita Sen, chief oil analyst at Energy Aspects, examines the effect the low oil price is having on OPEC members in the Middle East and how it could affect revenues for 2016
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uring 2015, the signs of financial strain on producers dependent on oil revenues to fund government spending, became increasing visible. With oil below $40 per barrel (at the time of writing) and gas prices also having collapsed, producers now face another grim year in terms of revenues. Even countries that accumulated a substantial fiscal buffer in the form of foreign reserves are faced with tough choices. We are already seeing dramatic subsidy reforms, which can lead to public backlash, and in 2016 many producers will have to dramatically reduce long-term investment, putting upstream projects at risk. GCC MEMBERS CUT SPENDING AND SUBSIDIES Even the wealthy Gulf producers are not immune to the impact of lower revenues. For instance, Saudi Arabia ran a deficit of $98 billion last year, much higher than its $38 billion forecast. Despite reduced spending, its 2016 budget predicts an $87 billion deficit, not helped by the war in Yemen, which is costing $6 billion per month according to some estimates. Qatar’s 2016 budget forecasts its first deficit in 15 years, at $12.8 billion, after failing to achieve the planned $2 billion surplus last year. Oman and Bahrain are also feeling the strain. The GCC States have started to increase public borrowing and have been drawing heavily on foreign reserves to make up budget shortfalls, with Saudi Arabia alone reducing its net reserves by $104 billion year-on-year by November 2015. But while these fiscal buffers have lessened the impact, they cannot protect budgets entirely. Significant cuts are being made to govern-
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ment expenditure, with subsidy reform at the top of the agenda. Saudi Arabia, UAE and Oman have all raised petroleum prices for consumers and cut other subsidies. Higher prices will be a shock for Saudis, who are used to some of the lowest fuel prices in the world. But the changes will also affect the wider economy. For instance the competitiveness of the petrochemical sector will be impacted by higher feedstock and energy prices just as two new crackers are due to come online. This is the start of a historic process in the Kingdom and more reforms are almost certain to follow. Subsidy reforms are never popular, particularly in oil-rich nations where the population feels entitled to extremely low prices. The rulers of GCC nations are aware how quickly public protests can gather pace and become a political threat following the Arab uprisings of 2010-2012. So pushing through fiscal reforms will need to be carefully balanced by maintaining enough social and infrastructure spending to limit unrest. POLITICAL CHALLENGES ARE WIDESPREAD AND RISING These are by no means the only OPEC members feeling the pain caused by lower oil prices and most countries are facing other political challenges alongside collapsing revenues. Iraq and Libya both need to finance the battle against the Islamic State and heal deep political divisions. Even Iraq’s exports reaching record highs in 2015 has not been enough to lessen the fiscal challenge – despite a 13% cut to forecast spending, the 2016 budget forecasting a $20.8 billion deficit. The financial crisis facing the semi-autonomous Kurdistan Region of Iraq is also severe.
Upstream spending in Iraq has been slashed. Iran’s budget is not as dependent oil revenues, but Tehran may still struggle to fund its upstream ambitions, especially if IOCs remain cautious. Generally these problems resemble a process of decay rather than an overnight collapse. Governments are unlikely to announce they have no money left, given the panic this would create. It is by attrition that government finances collapse – debts mount, more money is printed, inflation spirals, ratings agencies downgrade, borrowing becomes prohibitive and the currency devalues. Upstream investment is one of the areas where cash-strapped producers end up cutting spending. IOCs are also slashing Capex meaning they will not make up funding shortfalls if governments fail to contribute. As the number of new start-ups and expansions starts to dwindle, natural declines will gain greater prominence from this year onwards. Declines in mature basins can easily average 5-6% for onshore fields and 8-12% for offshore ones, quickly eating into production levels. This will reduce future export revenues as producers fail to sustain or increase capacity. Economic mismanagement of this kind can leave a legacy that lasts for many decades, so the fiscal decisions taken this year will be of huge importance for oil and gas producers around the world.
Sen will be speaking on the second day of Tank World Expo on April 12 and 13 in Dubai about regional supply, demand and trade flows in the Middle East and North Africa.
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MARKET ANALYSIS l OIL BENCHMARK
EVOLVING THE DUBAI CRUDE OIL BENCHMARK As global trade flows change, the crude oil benchmarks in the Middle East are also evolving
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rude oil benchmarks in the Middle East, which play a critical role in the pricing of energy products worldwide and especially in Asia, are entering a period of change. Dubai crude oil has been the main Asian benchmark since the mid-1980s despite Dubai’s peak production of more than 400,000 b/d in 1991 sliding to below 50,000 b/d today, according to most estimates. Through alternative delivery mechanisms that bring in crude oil traded in the spot market from Abu Dhabi and Qatar, the benchmark has remained relevant to the global oil markets as a ‘brand name’ benchmark, representing the value of more than two million barrels per day of crude oil freely traded in the markets. Like Brent and WTI, Dubai has evolved over time to reflect changes in the markets. Earlier this year, Platts successfully implemented the latest step in the evolution of the Dubai benchmark. HISTORICAL CHANGE The Dubai crude market has emerged over the last 30 years to become the main physical market reference for crude oil delivered to Asian refineries from the Middle East and far eastern Russia. Platts’ Dubai and Oman benchmarks are used to price more than 12 million b/d of Middle Eastern and Russian crude exported to Asia. Crude and all other major commodities have seen a steady move in trade flows from West to East – predominately to China – over the past decade. The rise of China’s economy has made the country the world’s largest importer
of waterborne crude oil. The paradigm shift for oil flows has been particularly obvious in the last 18 months, with the volumes through Platts’ Dubai price assessment process hitting record highs. Last year’s total volumes reported through the Platts market on close process were seven times higher than in 2009. Following two months of consultation with market participants, an open and transparent process that is standard ahead of changes to Platts’ benchmarks, changes to the Dubai benchmark were implemented so that Qatar’s Al Shaheen crude and Abu Dhabi’s Murban would become deliverables, thereby boosting the available liquidity in the daily assessment. This means a volume of over 2.4 million b/d, or three times the volume deliverable into Brent, is now available. This represents comfortably more than 100 cargoes available for trading and delivery during Platts’ price assessment process each month. A NEW METHODOLOGY Trading with the new grades of crude started on January 4, 2016. In a clear sign that the methodology changes are working, a total of 16 cargoes were delivered to Chinaoil from various sellers using Platts’ process over January as a whole, six of which were for Al Shaheen. Nine of those cargoes were Upper Zakum, and one was Oman Blend. While much attention is paid to the fact that a large Chinese buyer chose to procure some of the cargoes available to the market in the public domain last month, it is important to remember
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that the benchmark represented the delivery of an array of spot crudes, and the activity of a diverse group of trading companies – including Shell, Reliance, Vitol, Total, BP and others who were also active in the Middle East crude assessment process last month. Commodities trading used to be akin to the contemporary art market: full of information asymmetries and conflicts of interest. Platts provides transparency, robust methodologies and a level playing field that allow price formation to take place in the open rather than behind closed doors. This gives all market participants robust pricing data and insight on which to base their trading activities. Platts is still reviewing whether to introduce a quality premium to Abu Dhabi’s Murban to reflect its properties. Trade flows are changing. The US has now become a crude exporter and China has become the world’s largest importer of crude moving in tankers. The fact that such a tectonic shift is occurring is causing anxieties to market participants. Yet the crude market is not showing signs of distress or unusual behaviour – it is indeed a functioning market where supply and demand inform price discovery. Platts will be keeping an eye on the future to ensure the Dubai benchmark evolves to reflect market changes.
FOR MORE INFORMATION This article was written by Dave Ernsberger, head of oil content at Platts
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TECHNICAL NEWS
Technical news
All the latest terminal technical news from around the globe
New back pressure regulator introduced by Cashco Cashco has launched a new model BR back pressure regulator within the oil and gas industry.
Applications include upstream over-pressure regulation of cryogenic liquids, sour gas, industrial gases and chemicals, as well as oil, steam and compressed air. Available in globe or angular porting configuration, the Model BR valve controls inlet pressures up to 200 psig (13.8 barg) in multiple spring ranges and can be utilised for the majority of industrial pressure relief applications. ‘This is the first in-line back pressure regulator of its type to be offered by Cashco,’ says Clint Rogers, president of Cashco. ‘Our engineers saw the opportunity to take some of the features of our model D pressure reducing regulator, such as the body and internal spring components, to make a cost-effective in-line back pressure regulator. At the same time, we’re able to convert it and offer it in an angular port configuration as well.’ The BR regulator is available in five sizes from 3/8 to 2 inches, and can handle materials from 20 to 400 degrees F, with the appro-
priate body/spring chamber and trim material combinations. Trim designs include metal-seated or composition-seated with a metal or composition diaphragm. Two body materials will also be available, with 27 different trim material combinations from which to select.
Strategically located petroleum bulk storage facility. The only deep water platform (64’ operating draft) on the U.S. East Coast
• 20 storage tanks 80 miles East of New York Harbor
• Total Storage Capacity of 5 Million Barrels
• The only deep-water loading/unloading platform on the U.S. East Coast.
• Easy reloading for distribution of product to U.S., Canada and Europe
United Riverhead Terminal, Inc. (631) 284-2010
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www.urtny.com
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
TECHNICAL NEWS
Rotork simplifies petrochemical sampling and analysis
Magnetrol introduces a new noncontact radar transmitter
Rotork’s schischek compact explosion proof valve actuators have been selected for a critical petrochemical analysis process.
Magnetrol International has launched the pulsar model R96 noncontact radar transmitter for accurate and reliable level control in process applications.
Ecopetrol, the largest petroleum company in Colombia, uses near infrared spectroscopy (NIR) to perform quantitative sampling separation of hydrocarbons. The process separates the hydrocarbons into four chemical groups. Central to the operation of the process, sets of small two and three-way fast acting ball valves are used to gather the samples for analysis and precisely maintain the pressure, flow and temperature through the spectrometer. Swift valve operation is essential to maintain the characteristics of the media for accurate sampling. Additional application constraints involve restricted spaces around valves, the hazardous area classification and requirements for failsafe operation, end of travel indication and low power consumption. Ecopetrol concluded that the electric schischek actuator could satisfy all these demands with a reduced maintenance requirement in the demanding operating environment. Almost 100 Schischek RedMax actuators with associated hardware have been installed and are certified for Zones 2 and 22 hazardous area operation, environmentally protected to IP66 and equipped with self-adaptable 24 – 240V AC/DC power supplies.
Almost unaffected by the presence of vapours or air movement within a vessel’s free space, the two-wire, loop-powered, 6 GHz radar transmitter measures a wide variety of liquid media in process conditions ranging from calm product surfaces and water-based media to turbulent surfaces and aggressive hydrocarbon media. The pulsar offers: • Best-in-class signal processing for accuracy and reliability • An extensive measurement range of 130 feet (40 meters) • Advanced diagnostics with automatic waveform capture and data logging • A powerful device type manager (DTM) with industry-leading field configuration and troubleshooting capabilities • SIL 2 suitability with a safe failure fraction (SFF) = 92.7%. (FMEDA available upon request) • Hart and foundation fieldbus digital outputs The new radar transmitter joins the company’s eclipse model 706 guided wave radar (GWR) transmitter to offer process industries a complete portfolio of advanced radar technologies for level control solutions.
AxFlow branches out beyond Europe Sweden’s AxFlow Holding has acquired the majority share in AQS Liquid Transfer, an importer and distributor of pumps in South Africa. The growth initiative is in line with AxFlow’s strategy to expand its business outside Europe. AxFlow is a major distributor of liquid fluid handling equipment with operations in 27 European countries. ‘Having established a very strong market position in Europe over the past 25 years, we have been looking for ways to expand our business outside Europe. South Africa is an interesting market for us and an important gateway to the continent,’ says Ole Weiner, president of AxFlow. ‘The owners of AQS have built a sound company with a fine team of engineers and service staff with a strong drive to grow the business further.’
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TECHNICAL NEWS
Emco Wheaton launches products for bulk fluid transfer industry Emco Wheaton has announced the launch of two new products for the transfer of bulk fluids – the EW selector and the combi-cabinet. The products have been designed to make the process of delivering bulk liquids safer, quicker and more effective. The selector and cabinet means that operators will no longer have to travel along the API envelope of the vehicle in order to operate the system. Driver coach, Bobby Blaire, based out of
BP’s Grangemouth Terminal, has been trialling the equipment and is satisfied with the additional safety the EW Selector offers. He says: ‘If there is a failure you are right at the point of control and it is much safer. You can visualise and see what you are doing every step of the way – from a control perspective, it
is much better.’ Both the EW selector and the combi-cabinet were designed to be retrofitted onto tankers already in the field or provided as part of a new tanker system. Both can work hand-in-hand or as part of other current systems. The EW selector is fixed directly above each loading or discharging adaptor, allowing the operator to quickly, simply and with reduced risk of error, select the product to be delivered without the need to move away from the tanker API envelope. It includes a compartment product grade selector which is able to indicate up to 10 different fluids. The solid-state modular control valve has been designed to operate individually or modularly as part of a pneumatic control system. With all the connections consolidated in one place, the integrated system of the combi-cabinet reduces the need for complicated pneumatics and overfill prevention system looms in separate locations, allowing ease of access and safer operation.
Join us at Expo Tank World in Dubai April h t 3 1 d n a h t 12
Stand D13
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TECHNICAL NEWS
Tüv Süd helps implement European chemicals regulation
Roadmap for Port of Fujairah’s future operations established
Tüv Süd is supporting Iranian chemical product manufactures and German importers by implementing the European chemicals regulation REACH.
Port performance at the Port of Fujairah has significantly increased following recommendations from Systems Navigator on pumping time and vessel waiting time.
Following the lifting of the Iranian trade embargo, Iranian manufacturers can now export their chemical products to the EU. However, they must observe the provisions of the European chemicals regulation, REACH. ‘Under the terms of the regulation, importers must register any substances produced in volumes over the limit of 1 t/a per substance within specific deadlines’, says Dr Dieter Reiml, REACH expert at TÜV SÜD Industrie Service. Manufacturers can also commission an only representative outside the EU to carry out registration on their behalf. This option has advantages for the entire supply chain says Reiml; for example, importers no longer need to register as downstream users. Given that Iran’s industry has not been involved with EU laws governing chemicals in recent years, Dr Reiml says companies will have a significant information backlog. ‘Advice from an experienced REACH consultant is vital if manufacturers and importers are to choose legally sound courses of action.’
The company was selected by the oil and chemical department of the Port of Fujairah and Fujairah Oil Tanker Terminals to develop a roadmap for the future of the Port, with the objective of making the Port a world class facility concerning efficient and safe operations and vessel handling. Following an analysis and evaluation of port infrastructure and performance, recommendations for improvement focused on decreasing vessel turnaround times, which were the cause of long waiting times at the port. A year after the project was complete, recent analysis by Systems Navigator shows that the port has made some impressive improvements. Pre and post operation time for vessels larger than 20,000 DWT decreased by an average of 18% and vessels smaller than 20,000 DWT decreased by an average of 23%. Current pumping times are gradually reducing compared to times in 2014 however, further improvement is needed to reduce the vessel-waiting time at the anchorage. Overall, the port has increased throughput while reducing vessel turnaround and waiting times.
Building on our experience to meet your needs
www.emcowheaton.com
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TECHNICAL FEATURES l MARINE GROUNDING SYSTEMS
IMPROVING SAFETY DURING LOADING AND UNLOADING OPERATIONS OF VESSELS
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lthough marine grounding systems have been in use for more than 30 years, there is still a lack of knowledge about the merits of their use. Timm Elektronik has conducted research and embarked on long-term studies to enhance knowledge of the physical effects that can create an unsafe environment in hazardous areas. The main reason is a potential difference between ship and loading bay, caused by the galvanic effect. The ship, the metal construction of the loading bay and the water as electrolyte in between form a galvanic cell. Between the electrodes of this cell a voltage difference exists. Any conductive connection between the electrodes will lead to an indefinite electrical current flow. This effect takes place as soon as the ship is docked, and not only during loading and unloading. PHYSICAL BACKGROUND Typically ships are insulated from shore to take the physical effect into consideration however, errors can still occur. There are risks of sparking or hotspots in all areas, where a conductive connection might be created by mistake or by chance, e.g. at staircases, with metal ropes and tools. These hotspots could lead to a fatal ignition in hazardous areas. Marine grounding creates a higher level of safety on the vessel and the loading bay by means of a monitored bonding connection. The
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marine grounding system is attached to the ship directly after the vessel has berthed and before any loading equipment is mounted. The potential difference between ship and shore will be reduced to a safe level by the conductive bonding line. As long as safe conditions are detected, the signal light at the marine grounding system shows status green. The impact of errors in handling and operating with metal equipment on board or on the loading bay will not create a hazardous situation. The research – in conjunction with University of Hamburg Harburg – over the last couple of years formed the basis for the development of a new marine grounding system SEK-3, which was brought to market in 2016. 01 Tank farm with ship loading and unloading 02 Battery effect 03 Marine grounding system SEK-3 04 Marine grounding clamp
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SYSTEM SOLUTION The SEK-3 has new safety and operational features and has an explosion protection design. Research shows that conductive connections made between ship and shore are the most critical aspect at loading bays. While on the one hand dangerous situations caused by undefined connections are defused by the installed marine grounding system beforehand, on the other, serious attention must be paid to the design of the connecting elements of the marine grounding system as well as the monitoring of the electrical conditions when the bonding between ship and shore is established. This is one important reason why simple bonding lines or grounding control devices for electrostatics are inappropriate for use at marine applications. The marine grounding system SEK-3 has several technological features: By attaching the clamp to the ship, three autonomous measurements will be realised to ensure it is connected properly. These measurements comprise the mechanical position of the clamping jaws, the electrical connection to metal construction by the clamp and the resistance of the bonding cable. After the low-ohmic attachment of the clamp is measured and secured, the ship
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TECHNICAL FEATURES l MARINE GROUNDING SYSTEMS 03
itself and the electrical conditions between ship and shore will be detected. Proper clamp contacting, object detection and electrical conditions within specifications are requirements for the safe interconnection of the bonding line between ship and shore. In addition, before every interconnection by the marine grounding system the actual functioning of the switching and internal electronic is checked. In case of an unintended loosening of the clamp or any change of the electrical conditions between ship and shore apart from safe specification, the marine grounding system SEK-3 will immediately interrupt the bonding connection. Any remaining or induced voltage
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difference at the cable will be dissipated securely inside the system and kept away from the connection point at the ship. USABILITY AND APPLICATION To improve usability, the SEK-3 features a grounding clamp with additional status LEDs. The operator at the attachment point gets informed directly whether the clamp is attached properly or in need for retightening. Two clearly visible signal lights at the front of the SEK-3 housing indicate the operational status widely. Detailed status information, e.g. for error diagnosis, are available inside the housing at an additional LED display.
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The system is designed under the intelligent explosion protection concept. This concept features a user-friendly combination of protection methods allowing the housing to be opened in hazardous areas for easy access to inside display, to change cables or connection wires. Future-proof process integration is possible by six control outputs. Filling release is given by a potential-free and internally monitored contact output or by an intrinsically safe electronic output. This makes compulsive grounding possible. Two configurable changing contacts, one configurable electronic output and one additional alarm contact are available. The configurable contacts can be set to indicate different operating states for evaluation at the control room. The alarm contact signals potentially unsafe situations, e.g. overvoltage or overcurrent at the bonding line, internal failures as well as a deactivated marine grounding to warn immediately and to prevent from using the system when safe conditions cannot be assured.
FOR MORE INFORMATION This article was written by Timm Elektronik CEO Dr. Thomas Overbeck and Dr. Alexander Zelck, head of sales, Timm Elektronik
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TECHNICAL FEATURES l AUTOMATION
HOW TO MAXIMISE TERMINAL AUTOMATION SYSTEM ROI COUNTRYMARK DEMONSTRATES HOW TO GET THE MOST FROM TAS
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erminal automation systems (TAS) are by no means new, but they are a significant investment. There are many ways TAS can benefit terminal operations and making sure yours is delivering its full value can pay off not only in operational efficiency, but also better relations with customers and drivers. The experience of CountryMark, an oil exploration, production, refining and marketing company, offers business lessons in the benefits of not only investing in a TAS, but also maximising its return. AN INDUSTRY-WIDE CHALLENGE CountryMark is an American-owned oil exploration, production, refining and marketing company, providing refined fuels to farms, families and fleets throughout the corn belt, a region of the US that serves as the agricultural producer for many countries around the world. CountryMark is structured as a member-owned cooperative of regional farmers, meaning members are both owners and customers of the cooperative. In their role as global producers, they want the best premium fuels for their operations. Like many terminal operators, CountryMark must enlist its blending technology to produce an array of fuel types. It formulates its biodiesel and ethanol-blended fuel products to ensure excellent driving performance and operability during often harsh winters. The challenge CountryMark faced was one many terminals face: how to continue to deliver its service to a diverse set of customers with vast numbers of fuel recipes, contracts and destinations, and in a cost-effective way. Customers wanted accurate and efficient loading at the terminal, as well as up-to-date information on the status of their product allocations. CountryMark needed to accurately track inventory levels and share that information across the enterprise efficiently, as well as invoice customers timely and accurately while communicating where they stand in their product allocations. Without the right systems in place, terminal operators are hard pressed to do this, needing to rely instead on significant staff time to monitor, track and communicate data. In CountryMark’s case, the needs of customers and its standards of service were becoming increasingly burdensome for staff, requiring a great deal of time to track and update data across the enterprise, as well as accurately report to customers.
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CountryMark decided it needed a technological solution so it could update and share complex data across the company, ensure drivers had efficient and informative loading access, and more effectively support customers with strong credit allocation controls and real-time inventory information. With a wide variety of fuels and many terminal applications to track, a partnership with Schneider Electric was formed to implement its TAS. REAL-TIME DATA TOOLS Terminal automation is truly a business imperative because a system that can quickly and accurately provide inventory data is a powerful tool. It unleashes the ability to make better decisions and it forms the foundation for efficient supply chain operations and well-grounded analytics. In concrete terms, automation provides terminal staff with at-a-glance terminal status, real-time inventory management, flexible reporting tools and a reliable event log. By consolidating data reporting into a unified system, it’s possible for companies like CountryMark to regularly analyse terminal activity and profitability. In addition to analysing what’s occurring at a given terminal, the automation software improves visibility across the entire enterprise – from the refinery through the terminals. LEVERAGING TECHNOLOGY FOR DRIVERS CountryMark’s drivers also benefitted from TAS implementation. Now, they spend less time from gate-to-gate. Consequently, not only are drivers more satisfied with their experience, it is now possible for more trucks to move in and out of each facility and increase throughput. With the new automation system, there are enhanced safeguards to ensure truckers are pulling the right fuel products. But when they are loading their vehicles, the truckers also have the ability to access credit system data. This is invaluable so truckers can avoid pulling loads that are beyond their credit allocations. FEEDBACK FROM COUNTRYMARK When CountryMark decided to install its TAS, it was familiar with the generic operational and financial benefits. But until the new system was in place, its specific impacts to CountryMark’s business were yet to be seen.
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TECHNICAL FEATURES l AUTOMATION
The feedback provided by CountryMark is particularly instructive. Before leveraging the power of terminal automation, manual data gathering and tracking placed limits on CountryMark. Now, it has the capacity to expand terminal operations and staff roles. Todd Dolbeer, CountryMark’s electronic systems support manager, reports that the cooperative now has the ability to use even more fuel recipes. Automation has streamlined the work lives of CountryMark employees, so they can focus on higher-level activities rather than investing time in collecting and processing data. Dolbeer said he also has seen improvements in relationships between terminals and customers, because terminal operators are getting the data they need when they need it, and information is being carefully and correctly managed for customers. By saving time and energy on information gathering, CountryMark has subsequently moved forward with improving business processes. The result is that it can consistently take a consolidated, enterprise view of product inventories. CountryMark also indicated that it has enhanced worker productivity through the streamlined reporting system. Day-to-day terminal operations have become smoother because there is better throughput with more reliable loading and less downtime. MORE THAN JUST OPERATIONAL BENEFITS The right TAS does more than just improve day-to-day operations. It can be a significant ally in managing potential business disruptions. CountryMark was working on a rebrand of its premium diesel products, but to do so it needed to make multiple programming changes
on the same day at four terminals. Those programming changes could have shut down loading operations across a significant portion of the company’s network. Using the testing system for CountryMark’s TAS, they were able to work with Schneider Electric to map out an action plan and implement all the programming changes ahead of time, and save them to a new database file for each terminal. When the changes went live, they were able to be pulled all at once from the test database and installed to the production database at each terminal. The conversion went smoothly, greatly reducing the amount of potential down time at each terminal. If the changes had been made on live systems, the terminals would have been down for two to three hours each, according to Dolbeer. Instead, he reported that each terminal was down for only about 30 minutes. CountryMark and other terminal operators are discovering that automation can provide strong business results for much more than just automated access and loading. That’s because it gives operators the ability to anticipate shortages, prevent down time, maximise profits, rapidly adjust product allocations and meet a broad range of customer needs.
FOR MORE INFORMATION www.schneider-electric.com
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MARKET ANALYSIS l XXXXXX XXXXXX
versatile. Always a leading innovator, ROSEN not only supplies pipeline customers with the latest diagnostic and system integrity technologies but also offers flexible solutions and all-round support for plants & terminals. www.rosen-group.com
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TECHNICAL FEATURES l AUTOMATION
ESTIMATING – FROM DAYS TO MINUTES T
he tank terminal industry is an old one. While there are many good aspects to shout about there are still several things that can be a detractor when considering leveraging technology and the change it can bring or the resistance to it. It is not uncommon to see large numbers of tenured team members spend more than 20 years at a tank manufacturer. That ability to have very knowledgeable employees is a big strength that is not always present in other industries, which often have a very fluid workforce with wide age ranges. THE CHALLENGE As old and stable as it is, the industry is not without the need to adapt to market changes and to be able to leverage technology where it makes sense. However, that is not always easy to do considering the leap that may be required between the user and the technology. It is also not without risk when considering the fear that change can bring. This is very true for the tank storage industry, which often has a tough and rugged industrial feel to it when you consider the culture within. Certain scenarios have been playing out that have been leading to a shift that coincidentally has led to a fundamental cultural change. Tanks in general have been starting to leverage sophisticated solutions at a rapid rate. Some of the changes in the industry include: • A predictable product that was same but different, • Similar industry challenges from one company to the next, • Similar industry use of Excel, • Similar industry use of AutoCAD, • Rapidly evolving technical solutions that solved parts of the problem, • Early adopters – companies that are willing to invest to prove it out and remove the problem. THE SOLUTION After a thorough process of evaluating industry goals and challenges, coupled with D3 having a unique access to a tool acquired by Autodesk, D3 began to work with some of the early adopters to solve the major areas of today’s workflow challenges. These areas consist of: • Develop a user-interface to rapidly lay out a tank with 3D graphics • Integrate back office systems to tie-in costing of materials and labour to selections for quoting • Easy button creation of 3D models, drawings, bill of material lists, ERP data push, PDF and CNC exports THE PROCESS D3 starts with the scoping process to understand the client’s current state and to compare that with their desired future state. From there the company builds out a plan that can solve the problems and provide the desired return on the investment. Clients are then armed with a game plan
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As old and stable as it is, the industry is not without the need to adapt
that shows the order of events, expected outcomes and control of when to pull the lever to gate through the custom development sprints. THE RESULTS Clients solve problems with each delivered sprint, thus they are able to self-fund all of the following sprints. This helps a client phase in the solution with real gains as you go along and not faster than can be afforded. The outcomes include: • Estimating and design tasks, which used to take 165 minutes, now take about 10 minutes • Drawings and other documents are created with a click of a button compared to days in engineering • Intelligent 3D models are created on the fly reducing what has to be done even for the most custom projects • Clients get what they want before the competition can respond and it is accurate. CONCLUSION While these solutions are not cheap, neither are the problems they are solving. Most projects have a six to 12 month ROI for all of the sprints mapped out. When you invest in tools that can improve the bottom line in large increments by harnessing rules into a reusable tool, a company can then be scaled with the business and not have to default to throwing more warm bodies at the problem. You don’t have to let your intellectual property clock out at 5pm and hope it returns. FOR MORE INFORMATION This article was written by Daryl Price, director of sales at D3 Technologies, +1 417-763-4033 www.d3tech.net
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TECHNICAL FEATURES l CONSTRUCTION
THE CHANGING FACE OF TANK STORAGE BUILDING A
newly patented tank erection system is making inroads in the tank storage construction industry by delivering significant time savings for workers. HHM Oilfield and Automation has been refining its market offering by developing a range of innovative welding machines, including its newly patented tank erection system, the Tank Builder and automatic vertical and horizontal welding systems. Owner Joseph Honein, who has more than 50 years experience in welding and tank construction, explains how the Tank Builder can save time by negating the need to construct and remove scaffolding for each ring of the tank as it is built. The Tank Builder has been used and proven in Brazil to build three tanks near San Paulo. ‘It builds tanks without the need for conventional scaffolding, as previously, for every new ring another level of scaffolding is needed. ‘It is a rolling, motorised piece of equipment that works as the construction project is being built up. ‘It eliminates the need to build up and take down scaffolding. It is much safer and the time it saves the builders is monumental.’ The Tank Builder is fabricated from mainly aluminum to reduce the weight of the structure and can be adjustable to various tank radiuses and plate sizes. The product was developed in response to the need to get construction projects completed quickly, but in accordance with more stringent safety protocols.
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01 The Tank Builder 02 HHM’s automatic vertical welder (AVW) and mobile power source at work in Texas
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Speed and safety are two key considerations in this industry. Personnel have to get the job done quickly however, safety issues have become so extreme that it is of the upmost importance that there is a safe environment to work in. INNOVATIVE WELDING TECHNOLOGY The company’s AVW and AGW products are also breaking new ground in the construction of tanks. Honein explains: ‘Our AVW can complete 12 vertical seams on 10 ft. plate in one shift. It’s automatic and it only takes one person to operate it. ‘Our machines are currently being used to build tanks in several Texas locations, Canada, Chili, and Kazakhstan. ‘The difference between our machines and other ‘cookie cutter’ types on the market is that we will customise a machine based on a variety of factors such as where the tanks will be built, specific sizes of the tanks, and what will be stored in the tanks.’ Recently, the company built some machinery for a company that constructed large LNG tanks in Australia. They had to use 25 foot tall plates, which had never been used before. There was no machinery available anywhere in the world that could handle this size plate. The machines were designed so they could be used for that particular project, but they were resized and refurbished by HHM to reuse on conventional size plates when the project was completed.
FOR MORE INFORMATION www.hhmwelds.com
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TECHNICAL FEATURES l VALVES
FAST ACTING DOUBLE BLOCK AND BLEED ISOLATION
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n a small but yet significant amount of applications where Class VI sealing and double block and bleed is required, there exists a limited amount of possible valve choices for the customer. Usually this type of tight shut-off requires a valve with resilient seating. First we need to clarify a misnomer which has existed for years. There is a difference between double block and bleed and double isolation and bleed. The majority of cases where the specifications call out double block and bleed (DB&B) the valve required and expected is actually a double isolation and bleed (DIB) valve. API did finally revise the nomenclature in the 23rd edition and now differentiates between DB&B and DIB and it is a very important distinction. FAST CLOSURE In the case of DIB valves that provide a true double block and bleed each independent of the other and each in series to the other with a bleed between both blocks (DIB) sometimes a fast closure is required. Typically, the DIB valves are the expanding plug valve design. These go under various different names usually such as Truseal, Twin Seal, Omniseal, Control Seal and so on. This design is one where sealing slips with an embedded elastomer are retracted from the seat areas before rotation of any type. Elastomers are excellent sealing materials under compression but their resistance to damage under shear is poor. Thus the inherent design of the expanding plug valves insures shear forces are eliminated and compression forces only act to seal the valve. The compression force is a result of the tapered plug, which the slips ride upon, is vertically raised or lowered thus increasing or decreasing the relative width of the slips. When the relative width is increased this pushes the slip against the body seat. When the plug is raised and thus the relative width is decreased the slips are pulled away from the body seat only then does the plug turn to the open position. The reverse occurs to close the valve. This mechanism on a large valve using an operator can require 20-25-30 or more turns to fully cycle the valve. Many times actuation,
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usually electric, is required. The dilemma typically is the valve takes 20-60 seconds to fully cycle. This is the case because the valve must, when going from open to close: • Plug needs to turn 90˚ • Plug needs to vertically move down thus forcing slips against both sides of body seats (upstream seat and downstream seat) upon closure. When going from closed to open: • Plug needs to vertically move up thus retracting slips from both sides of body seats (upstream and downstream seats) upon opening • When fully risen the plug needs to rotate 90˚ to open position. If we go to a faster electric actuator that has a RPM of 100-150 we are forced to large actuators as RPM and torque are inversely pro-
OmniSeal DB&B / DIB expanding plug valve with hydraulic actuator
portional. Also, there are overruns that cause setting limit switches to be inaccurate. If we need an operational time of six seconds (typical on some applications) for a 20” valve that has 46 turns to open it would require a RPM of 460 which is not feasible for any electric actuator. The HXP line of Omni hydraulic actuators can operate the expanding plug valve in six seconds as the actuator operates in a linear motion. The design achieves the required turn and drop to close and lift and turn to open function required for this valve type. The actuator operates under typical plant hydraulics pressures of around 70 -> 90 bar. Special burst disks are installed to insure any overpressure does not damage the valve as the forces operated by the actuator are quite large. The ‘thrust’ (as opposed to torque) keeps the valve elastomers compressed during closure. The typical application is where cross contamination needs to be limited during product change. A valve that takes 30 or more seconds to close allows flow until the valve is fully closed. A valve that closes in six seconds results in one fifth the product mixture. With these hydraulic actuators a 20” or 24” expanding plug valve can achieve full cycle in six seconds for example, instead of the 30 seconds an electric actuator with a RPM 0f 92. Bigger valves require even more RPM’s yet a hydraulic actuator can cycle in the 6 seconds range if required. A note of caution, typically a safety factor of 25% to 50% in torque output over valve torques is specified for electric actuators. Do not do this with the hydraulic actuators. Hydraulic actuators create thrust not torque. With a hydraulic actuator, a 50% safety factor will result in several tens of thousands of additional foot/lbs of thrust which can and will damage the valves. Hydraulic actuators sized for the valve size, class and maximum Delta P do not require a safety factor. The thrust generated by the correctly size actuator is sufficient to achieve proper sealing. FOR MORE INFORMATION This article was written by Fred Turco, vice president of marketing at Omni Valve, PVsales@omnivalve.com, +1 888-901-7584.
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TECHNICAL FEATURES l XXXXXX XXXXXX
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www.d3tech.net/solutions/automation APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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TECHNICAL FEATURES l XXXXXX XXXXXX
MAY 23-25 2016 ILTA’S 2016 EDUCATION PROGRAMS OFFER SOMETHING FOR EVERYONE!
ILTA CONFERENCE
TRADE SHOW SYMPOSIUM
• Monday, May 23 – Tuesday, May 24
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Sessions will feature in-depth presentations focused on terminal operations, business issues and regulatory compliance. Nine sessions will be presented in Spanish.
Six sessions will examine coating applications, loading rack technologies, tank truck bottom loading practices, vapor control systems and terminal automation.
The Passing Zone
• Wednesday, May 25
POST-CONFERENCE TRAINING • Tuesday, May 23 – Thursday, May 26
Three courses will be offered: Advanced Tanks: Air Emissions; Air Emissions: Loading Operations; and Introduction to Terminals.
KEYNOTE LUNCHEON
Jon Wee and Owen Morse
Entertainers & Speakers on the Power of Partnership, Innovation, Collaboration and Execution Take two comedians with chainsaws, throw in audience participation, and what do you get? ILTA’s 2016 keynote luncheon speakers! See how John Wee and Owen Morse, also known as The Passing Zone, combine their talents to effectively demonstrate how their individual safety and success are directly related to how well they work together.
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TECHNICAL FEATURES l PIPING SYSTEMS
THE OVERALL FRP SOLUTION FOR TANK STORAGE PIPING SYSTEMS
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iping systems are just as important as the storage tanks themselves in order to secure no loss of production time and guarantee a smooth workflow of the tank terminal. FRP piping systems offer several advantages in comparison with the conventional metal alloys and rubber-lined steel.
thermoplastic and fluoropolymer liners have been combined by Plasticon Composites with glass fiber reinforced polyester resins to provide customers with dual laminate piping systems for Dual laminate construction combines the superior chemical resistance of thermoplastics with the mechanical strength of GRP.
PIPING SYSTEMS IN FRP Today, FRP piping systems are available in a variety of standard diameters ranging from 25 to 2,500 mm (larger diameters are also available). Plasticon Composites offers FRP pipe and fittings to meet all national and international standards depending on the area and application. Combining the strength of FRP and the chemical compatibility of plastics provides customers with a superior alternative to costly metal alloys and rubber-lined steel. Some of the main advantages in comparison to steel components are: • Little to no maintenance is required • A long service life of up to 50 years • Excellent abrasion and corrosion resistant • Lightweight (25-50% of steel) • Fast project execution • High cost effectiveness – in comparison with stainless steel or carbon steel rubber lined • Corrosion and chemical resistant.
APPLICATION AREAS Due to their properties, FRP or dual laminate piping systems can be used in several environments. These include all kinds of underground piping systems designed according to ISO 14692 and AWWA 45. Insulated piping systems can be supplied for cooled water conduits used in tropical and subtropical regions or in cold environments. These include heat tracing to prevent the medium from freezing. The use of polyurethane insulation finished with a GRP laminate ensures 100% vapour-tight insulation. The systems can be used in the following applications: • Tank storage facilities • Flue gas desulphurisation • Ship building • Fire fighting • Water treatment • Food processing • Sewage treatment • Water purification • Metals and mining industry • Chemical processing
RFID TRACKING SYSTEM For the management control of the piping system, Plasticon Composites has designed the tracking system RFID so during engineering, production, transport, installation and after installation, the entire piping systems can be monitored. TECHNIQUES When storing in tanks the corrosiveness of the stored material needs to be considered when designing the piping systems of the storing tanks. Plasticon Composites uses different techniques depending on the given design criteria.
PIPING COMPONENTS Plasticon Composites designs FRP and Dual laminate piping systems, combining FRP with PE, PP, PVC-U and C-PVC: • Elbows • Flanges • T-pieces • Reducers from one piece The FRP components are produced by winding of first-class pipes, produced by means of injection moulding from thermoplastic granulates.
DUAL LAMINATE PIPING SYSTEMS In addition, there are thermoplastic lined FRP (dual laminate) pipes for aggressive products such as chlorine gas, hydrochloric acid, sodium hypochlorite and caustic soda. Various
ENGINEERING Non-metallic pipes and fittings can be used in a various number of applications. A number of designing parameters must be considered when determining the choice of a certain
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01 FRP pipes 02 Large diameter FRP tanks equipped with FRP piping
combination of product type and resin type. The most important parameters are: • Medium • Working pressure • Working temperature • Ambient conditions Consequence: • No ready-made combinations of materials. Most cases have to be always carefully studied • Material selection is mostly agreed with the resin and / or liner supplier. FIRE RETARDANT The FRP products can be specially designed for fire. The components will be executed with a special outer fire retardant layer to protect the wall and the content. The fire retardant resin for this outer layer has been approved according to ASTM E84 class 2 or DIN 4102 class B, S1. Due to a bigger wall thickness of the FRP tank, the heat transfer through the wall is reduced and prevents uncontrolled collapse of the tank or ignition of the stored product. SOLVAY – IKRA PROJECT In March 2013, Plasticon Composites received an order from Technip France for the turnkey supply and installation of the non-metallic equip-
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TECHNICAL FEATURES l PIPING SYSTEMS 02
ment, tanks and piping systems for the Rusvinyl PVC plant project in Nizhny Novgorod/Russia. FRP PIPING SYSTEM The scope of the project did include the following non-metallic supplies and services: • 45 pieces of shop fabricated tanks and apparatus in FRP and dual laminate technique • 8,500 spools of shop fabricated pipes in FRP and dual laminate technique • Primary and secondary pipe supports • Stress engineering and design of all components • Complete fabrication and onsite delivery • Installation of all components and pipes on site • Project management and site supervision The project was completed in a seven-month timeframe, with up to 80 personnel on site in Russia. Especially during the
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Siberian winter period, with temperatures hitting -35˚C, it was a tough challenge for personnel on site to guarantee the quality in providing field connections, and keeping track of the tight project schedule. Following on from the completion of this project, a two-year maintenance contract was secured with Rusvinyl for the non-metallic parts of the plant. The production and spooling of all tanks, apparatus and piping systems was conducted in Plasticon’s production facilities in Poland and China. ARABIAN CHLOR VINYL PROJECT During the past two years, the company dealt with another major turnkey piping project in another meteorologically extreme region of the world. Daelim Industrial Company from Korea selected Plasticon Composites to carry out the non-metallic scope for the Arabian Chlor Vinyl project in the Saudi Arabian desert. FRP TANKS AND PIPING SYSTEM IN SAUDI ARABIA The scope of the project did include the following non-metallic supplies and services: • 36 pieces of shop fabricated tanks and apparatus in FRP and dual laminate technique • 7,635 spools of shop fabricated pipes in FRP and dual laminate technique • Primary and secondary pipe supports • Stress engineering and design of all components • Complete fabrication and onsite delivery • Supervision of all components and pipes on site • Project management and site supervision Over the course of 10 months a total of 30 supervision personnel worked on site in Saudi Arabia. In an ambient temperature, which reached 50˚C, it was a challenging task to fulfill the requirements of the project. However, the project was completed on time and up to standard. Plasticon Composites is now seeking to become an essential part of the Saudi Arabian industrial community. FOR MORE INFORMATION This article was written by Gunar Krause, senior sales manager at Plasticon Composites, www.plasticoncomposites.com
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TECHNICAL FEATURES l XXXXXX XXXXXX
This conference is designed for engineers, managers or other individuals involved with operations, construction, environmental compliance, spill prevention and response or management activities associated with aboveground storage tanks.
SCHEDULE OF EVENTS: WELCOME RECEPTION FREE TRADE SHOW ENTRY April 19, 2016 April 20-21, 2016 9TH ANNUAL GOLF TOURNAMENT April 19, 2016
AST CONFERENCE April 20-22, 2016
COCKTAIL MIXER April 20, 2016 CO-LOCATED EVENTS: FREE EPA SPCC & FRP TANKS 101 SHORT COURSE April 19, 2016 APRIL/MAY 2016 VOLUME 12 ISSUE NO.2 April 19, 2016
NISTM
NATIONAL INSTITUTE FOR STORAGE TANK MANAGEMENT
To Register, Call or Visit the Website: 800.827.3515 | www.NISTM.org International 011.813.600.4024 69
Partners: EVENTS l XXXXXX XXXXXX
Official Media Partner:
Port of Rotterdam
1–3 June 2016, The Netherlands 4th annual professional workshop series and on-site visits to terminals in ARA region
Organised by:
On-site visits to terminals Workshop session Training programme
Programme partners:
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+7499 505 1505 (Moscow) +44 207 394 3090 (London) events@vostockcapital.com APRIL/MAY 2016 VOLUME 12 ISSUE NO.2 www.oilterminalmanagement.com
EVENTS l TANK WORLD EXPO PREVIEW
UNLOCKING INTERNATIONAL MARKETS
Following Easyfairs’ acquisition of Tank World Expo in 2015, the only tank storage event for the Middle East and African markets returns to Dubai World Trade Centre boasting a bigger exhibition floor as well as insightful presentations about this booming storage region. During the two day event on April 12 and 13, the latest innovations and services will be on display and we have a look at some of the companies at this year’s event… Arflu Industrial Valves Atreus Cape Motherwell Bridge Cylingas Elbe Petro Sarl Elmac Technologies Ergil
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
Fabricom
Saferack
Implico
Tranter Trimble
Knowsley SK Loadtec
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Arflu Industrial Valves seeks to develop technologically efficient products for the tank storage industry. Based on feedback from storage operators the company has designed a dual expanding plug valve that eliminates common problems that occur during operations. A full size stem packing is used and additionally, a special stem packing and inverted stainless steel trunnion can be used, which completely eliminates body cavities. The company’s valves have a backseat and the stem packing is accessible from the outside and can be easily changed – even under pressure. Arflu’s dual expanding plug valves are top and bottom entry types. If changing the slips is required, these valves can easily be accessed by removing the lower cover without any special tools. The lower trunnion is not part of the plug but incorporated in the lower cover, thus eliminating a body cavity where accumulation of particles may interfere with the valve function.
Visit Arflu Industrial Valves at:
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Atreus is a brand of the Kremsmueller Group, which designs, manufactures and supplies advanced ADRs and IFRs to the storage industry. Thanks to the Hub-Tite technology, Atreus provides the first silicone-free aluminum dome roof on the market and one of the most sophisticated IFR´s based on a new design. Hub-Tite is the result of close development collaboration between the tank construction experts of Kremsmueller and the engineers of the Atreus deck and dome division. Kremsmueller has been active in tank, apparatus and tank construction for many years. Kremsmueller Group has made versatility to a guiding principle. From pipeline and special tank construction to hardware and software
engineering, the company provides all services from one source. The group’s core competencies act together to form a large expertise network – specialists from relevant fields work together to produce the perfect service package without unnecessary stop gaps. The Atreus team will be on hand to discuss the Hub-Tite technology.
Visit Atreus at:
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BLABO® Tank Cleaning SLOPO® Oil Recovery MoClean® ATS Tank Cleaning
Clean, safe, and profitable Oreco non-man entry tank cleaning and oil recovery systems provide high-technology solutions for your tanks - with safe working conditions, minimised emissions and visible cost benefit to your enterprise. Discover how at www.oreco.com www.oreco.com
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Oil-water solids separation and recovery solutions
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EVENTS l TANK WORLD EXPO PREVIEW
With more than 100 years of experience • Gasholder design, construction and and technical expertise, Cape Motherwell maintenance Bridge designs, engineers and builds • Chemical cleaning storage tanks for the oil and gas, pet• Onshore environmental services rochemical, power and food sectors • Offshore environmental services worldwide. • Refractory linings The company offers a comprehensive • Access service including storage tank design, engi• Insulation neering, manufacture, construction, repair • Specialist coatings. and maintenance for large diameter above ground storage tanks. Its specialist services include: • Design, supply and construction of new storage tanks • Storage tank repair and maintenance • Turnkey handling of projects • Storage tank inspection With a special focus on the growing Middle East • Tank jacking With a special focus on the growing Middle East region, the As part of the Cape Plc April/May group, the com-issue of Tank Storage Magazine region, the April/May issue of Tank Storage Magazine pany will also offers: feature the latest breaking storage terminal • Heat exchanger design and maintenance will feature theplus latest breaking storage terminal development EXCLUSIVE operator interviews.
With a 40 year heritage in engineering, construction and project management Cylingas, a member of ENOC Group, has expertise in providing full integrated solution for tank farms and terminals. From the design and construction of steel tanks through to associated piping fabrication, pumping station installation and civil, E & I works the company provides a full range of services. Cylingas is an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified company and also a member of the British Safety Council. The company is accredited by ASME to use code stamps ‘U’, ‘U2’ and ‘R’ by NBBI. Cylingas engineers, designs, fabricates and supplies vertical and horizontal storage tanks for petroleum and chemical products, pressure vessels, gas and oil pipeline.
BE PART OF ONE OF THE WORLD’S BE PART OF ONE OF THE WORLD’S BOOMING STORAGE REGIONS BOOMING STORAGE REGIONS
development plus EXCLUSIVE operator interviews.
Visit Cape Motherwell Bridge at:
STAND C6
Visit Cylingas Company at:
STAND J6
PENETRATE ONE OF THE WORLD’S MOST IMPORTANT STORAGE REGIONS
ILTA SILVER SPONSOR
With a dedicated focus on the storage market in the US, the June/July issue of Tank Storage Magazine will feature the latest storage terminal developments and technology plus EXCLUSIVE operator interviews
It is the ONLY magazine handed to EVERY delegate at the ILTA in Houston
It will also be distributed at: • Oil terminal management: Logistics for Traders, Rotterdam, The Netherlands Editorial topics to include: • Internal floating roofs • Testing, sampling and data collection • Pumps • Biofuels • Lightning protection • Terminal automation and management systems • Tank construction and steel fabrication Advertising deadline: 29th April 2016
CONTACT US TODAY TO SECURE YOUR ADVERTISING POSITION: CONTACT US TODAY TO SECURE YOUR David Kelly ADVERTISING POSITION: International David Kelly Sales Manager E: david@tankstoragemag.com International Sales Manager T: (0)20 8843 8161 E: +44 david@tankstoragemag.com T: +44 (0)20 8843 8161 FOR EDITORIAL ENQUIRIES CONTACT: Jasmin McDermott FOR EDITORIAL ENQUIRIES CONTACT: Online Content Editor Jasmin&McDermott E: jasmin@tankstoragemag.com Online & Content Editor T: (0)20 8843 8159 E: +44 jasmin@tankstoragemag.com T: +44 (0)20 8843 8159
Serving the tank storage community globally Serving the tank storage community globally
Part of Part of
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FullPageAdTSMFebMarch.indd 1 APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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EVENTS l TANK WORLD EXPO PREVIEW
Inspired by the natural symbiosis of duckweeds covering the fresh water ponds, Elbé Petro Sarl has launched ERIS. ERIS (Evaporation Reduction Intelligent System) has been specifically developed to prevent evaporation during the storage of hydrocarbons and by-products, liquid, food and water. ERIS’ self-positioning, collaborative floaters have been recognised and awarded by the French Oil and Gas Industry association (GEP-AFTP). ERIS is an array of patented, independent floaters which have an optimised design to ensure a maximal fluid coverage whatever the geometrical irregularities of the tank are. The high covering ratio leads to efficient evaporation savings of petrochemicals, fuels and liquid food. Installation is quick and easy, with no on site assembly required, which cuts down on setup costs and tank downtime. Elbé Petro’s floating roof can be installed in a used tank to expand its lifetime, and does not required any maintenance.
Elmac Technologies are the international manufacturer and distributor of flame and detonation arresters and low pressure venting equipment. At this year’s show the company will be showcasing its new UCA series of unstable detonation arresters, which protect against stable and unstable detonations, have no restrictions on placement in a process or system, require no secondary protection methods, and which have the best pressure drop and flow performance of any comparable stable or unstable detonation arrester currently on the market. The UCA series of unstable detonation arresters combine Elmac’s patented HEDS technology (high energy dissipation system), along with the performance of E-Flow crimped ribbon elements, to form a product range which can save end-users money in terms of energy costs and reduced maintenance requirements. The whole UCA product range is ATEX accredited and designed and manufactured to EN ISO 16852.
Visit Elbé Petro Sarl at:
Visit Elmac Technologies at:
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STAND D34
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GLOBAL REACH Delivering projects, connecting suppliers with procurement teams
54,000 25,000+ 600+ Square Metres Exhibition Space
International Attendees
Regional and International Exhibitors
Exhibit in the Transmission & Distribution Zone Gastech provides international energy companies who operate across the up, mid and downstream sectors of the gas & LNG supply chain with a B2B platform to meet and influence highly-focused International decision-makers and buyers.
Who will you meet?
Senior Management
C-Level Management
Who exhibits?
13% Technical Audience
45%
Exhibiting companies represent the following sectors: IOC, NOC, EPC & FEED, Shipbuilders, Marine Engineering, Gas Processing and LNG Technology & Service Providers
6%
Commercial Audience
36% Technical Audience: Engineer, Technical Manager, Project Manager, Purchasing Manager, Technician, R&D, Technical Director, Purchasing Director
Senior Management: General Manager, Head of Dept & Directors C-Level Management: Chairmen, Presidents, CEO, COO, Vice Presidents
Commercial Audience: Business Development Manager, Sales & Marketing Manager, Country Manager, Trader, Operations Manager, Financier & Lawyer
SHOWFLOOR IS 70% SOLD & RESERVED To discuss your participation please email sales@gastechevent.com or visit www.gastechevent.com/tsm1 APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
Official Knowledge Partner:
Organised by:
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EVENTS l TANK WORLD EXPO PREVIEW
Founded in 1983, Ergil has provided a comprehensive range of professional services to oil, gas, petrochemical, chemical and water industries for 30 years. Ergil operates out of its headquarters in Istanbul, Turkey, with branch offices in the UAE, Azerbaijan and Singapore. The company has grown rapidly since it was created in 1983. Ergil currently operates in a unique 35,000 sq/m manufacturing facility in Mersin, Turkey, which enhances its advanced manufacturing capabilities and services. Ergil is ISO 9001, 14001, OHSAS 18001, ASME U-4, S-2, R Stamp accredited and has CE/ ATEX certificates for its storage tank products. The company also manufactures storage tank equipment, such as flame arresters, breather valves, gauge hatches, floating roofs, and floating suction pipe and provides many other products for the energy industry including pressure vessels, storage and process tanks and firefighting systems. At the show, company representatives will be discussing Ergil’s latest product launches. The MegaFloat internal floating roof is designed to meet all standards and specific requirements of the industry. Manufactured to be installed inside fixed roof storage tanks, it’s a full contact floating roof with no gap, thereby reducing emission and restricting vapour build up and pressure vacuum relief valve with flame arrester (end of line, weight loaded, integrated, atmospheric deflagration proof).
Visit Ergil at:
STAND B20
At this year’s Tank World Expo, the Implico Group will be showcasing its downstream solutions. The international software and consulting company will be offering a sneak peek at the upcoming version of the OpenTAS terminal automation system. Additionally, the company will also be presenting its iGOS cloud solution. The Middle East is an important hub for the tank storage industry. ‘This is generating great demand for services related to process automation,’ says Michael Martens, managing partner of Implico. ‘These innovative cloud solutions can help to stimulate continued growth, as they provide an inexpensive way of maximizing the efficiency of the terminal processes. The Tank World Expo is therefore a ‘must-attend’ event for us.’ Implico will also be revealing details of the latest version of OpenTAS, the terminal management software for tank farms and refineries. The company will also be demonstrating the range of benefits from its cloud solutions.
Visit Implico Group at:
STAND D18
Knowsley SK is a designer and manufacturer of bespoke firefighting systems for the protection of high value oil, gas and petrochemical installations. During Tank World Expo, the company will be showcasing its foam mixing technology, The Turbinator, its automatic rim seal fire detection and suppression system, CFI, and its range of FM approved hydrant valves. Additionally, the company will also be showcasing its Knowsley site services where it provides comprehensive surveys of existing firefighting systems to determine the current operational condition and when required perform refurbishment and/or upgrades to those systems. Additionally these services provide a certified verification of the system performance, which provides operators with the confidence that their fire suppression systems will perform when called upon.
Visit Knowsley SK at:
STAND F16
Fabricom BV is a reliable, experienced, full-service contractor, specialising in engineering and the building, repair and maintenance of storage tanks from size S to XXL, operating worldwide. The company is skilled and up-to-speed with the latest techniques, guidelines and regulations and compliant with the highest safety standards in the industry. Since 1977, Fabricom BV has successfully provided service of the highest quality within budget and on schedule. The company’s multidisciplinary project management team offers solutions in the following fields: • Tank inspection and assessment EEMUA 159 • Tank design and engineering • Tank installation and construction • Tank jacking and relocating • Tank maintenance and repair Fabricom BV invites visitors to their stand and will enhance their visit with a surprise gift. Fabricom BV is part of ENGIE (formerly GDF SUEZ).
Loadtec Engineered Systems is the technical supplier for high-quality bulk fluid transfer and fall prevention systems globally. The company specialises in bulk fluid transfer and operator safety during in-plant, road, rail, marine and IBC filling operations. Loadtec provides an inclusive concept to commissioning package for truck loading arms, fall prevention systems, marine arms and gangways, meter skids, blending skids, storage tank equipment, earthing systems, dry-disconnect and breakaway couplings. Loadtec is also well-established in the field of packaged solutions and combines manufacturing with the widest available portfolio. The company will be on hand at the show to discuss its product lines, including the Zip-Load loading systems range of land-based and marine loading arms, manufactured in Europe. Loadtec’s marine arms industry expert Martin Dicke-Künitz will be available to discuss the company’s services for end-users.
Visit Fabricom BV at:
Visit Loadtec Engineered Systems at:
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STAND B11
STAND C27
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
Scoping Global Competitive Markets For U.S. Grade Crudes And Export Infrastructure Whilst Mitigating Potential Bottlenecks
SAVE $200
Register By Friday
EVENTS l TANK WORLD EXPO PREVIEW
March 18, 2016
U.S. Crude Exports Congress 2016
Global Demand | Export Capacity | Pricing Differentials April 27-28, 2016 | Houston | Texas
Assessing New Opportunities And Economical Models For Exporting U.S. Grade Crudes To Asia, Europe & Latin America Global Demand...Export Capacity...Pricing Differentials...
What Will It Take To Make It Work? Key Benefits Of Attending
Speakers Include:
Be prepared to act when crude prices recover. It is vital that you know what your options are now. This conference will help you do just that. Learn U.S. Crude Export Strategies What are their strategic reason’s for moving crude at current prices Who is looking to export crude, what kind of crude are they looking to export, what are their price points, what are the markets do they think they are going to competitive in.
Evaluate Pricing Differentials And Logistical Costs, Region-by-Region Establish price points at which exports will be economic: Analyzing the LLSBrent-WTI spread to help model pricing frameworks
Find Out How Does International Market Value The U.S, Export Barrel
Discover Which Markets Offers The Highest Netback Global speakers deliver a short and longer term forecast of market demand for US grade crudes and ascertain how much they would be willing to pay for it
Discover Who Buy U.S Crude For Export And Which Grades Will Be Prioritized Will it be American players or global players, traders or refiners Will they buy it light, medium or heavy crude and how will they make sure they can access that oil and get it on a ship? Be part a this all timely discussion
What is the value of that barrel in Asia, Europe and Latin America: Hear a regionby-region assessment to establish which how buyers value US grade crudes in comparison with other global crude.
M Follow us @UnconventOilGas
Will Waggoner President
Mexico Petroleum Company Tom Ramsey CEO
Centurion Terminals Vikas Dwivedi
Global Oil & Gas Strategist
Macquarie Trading Daniel Gordon
EVP Business Development & Strategy
Delek US Holdings Refinery Mark Luitwieler
Business Development
Flagship Resources Robert Toker
EVP Corporate Development
VENUE INFORMATION: Crowne Plaza Northwest Brookhollow Hotel 12801 Northwest Frwy Houston, TX 77040
Black Hub Midstream & Stonebridge Energy Partners Terry Doherty
Director of Rail Strategy and Commercial Development
Genesis Energy Johan Themaat Founder
First River Energy
www.us-crude-export-congress.com
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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EVENTS l TANK WORLD EXPO PREVIEW
SafeRack will be introducing Inter Equipment as their newly appointed master distributor. Inter Equipment are a leading industrial distributor. With more than 25 years in the industry, they are a respected oilfield, industrial and construction equipment supplier. The company distributes more than 800 global brands and 900,000 products, in the world’s most challenging engineering environments. They are a leading vendor in the oil and gas, mining and metals, water and power, construction and infrastructure industries. SafeRack manufactures gangways and loading platforms, providing turnkey services to carriers of crude oil, natural gas and liquid products. Manufactured using precision laser tech-
nology, the systems support safety compliance and offer fall protection that is durable, easy to operate and requires little maintenance. ErectaStep, RollaStep and YellowGate brand turnkey stairs, gates, crossovers, and work platforms support safety compliance and deliver
Visit SafeRack at:
Tranter manufactures highly efficient plate heat exchangers from its facilities worldwide. With a very large range of products, Tranter caters to all major applications and heat transfer duties. Tranter is a leading brand across all markets. Tranter has supplied heat coils and heating panels for various complex industrial duties. The company has a well-established experience in the industry and offers several solutions for complex heat transfer problems including heating, cooling, temperature maintenance,
fall protection, they are easy to assemble, install and operate. Manufactured using precision laser technology and a patented modular design, the systems have superior quality, durability and can be easily reconfigured and repurposed as a plant’s footprint changes.
STAND E40
heat recovery. Its Platecoil and Econocoil range of highly efficient heating coils and panels have been supplied for versatile uses. The unique design of these coils improves thermal performance, simultaneously also improving layout, reducing installation time and facilitating maintenance. With complete solution comprising heat load calculations, sizing, layout, performance and mechanical integrity verifications, Tranter offers a single window solution to customers.
Visit Tranter at:
STAND E32
Geospatial information is changing the way people, businesses and governments work throughout the world. Trimble enables economic breakthroughs while enhancing safety, boosting compliance, reducing environmental impact and improving productivity. The storage of petroleum products requires strict governance to provide accurate transactions and to ensure worker and overall terminal safety. Trimble’s complete solutions provide accurate location information allowing tanks and containment features to be structurally monitored and managed throughout their lifecycle. They are designed to increase productivity of terminal changes by applying laser scanning technology to ensure storage tank inspections and calibrations save money, increase field worker safety, and produce superior results over other spatial measurement methods.
Visit Trimble at:
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STAND E2
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
EVENTS l XXXXXX XXXXXX
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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EVENTS l CALENDER
EVENTS 2016 APRIL 2016 12th-13th April
OFFICIAL MAGAZINE
Tank World Expo
OFFICIAL MAGAZINE
Tank Storage Asia Marina Bay Sands, Singapore
Dubai, UAE This is the largest tank storage event in the Middle East, held at the Dubai World Trade Centre. The two day exhibition and conference attracts industry professionals from all over the world, including technicians, managers & engineers looking to source the latest products and innovations in the tank storage industry. www.tankworldexpo.co.uk 19th -24th April
Singapore Maritime Week
This conference and expo brings together terminal operators, traders, regulators and equipment suppliers. There will be a range of different tank terminal technologies on display. www.tankstorageasia.com 28th-29th September
OFFICIAL MEDIA PARTNER
NISTM 9th Annual Aboveground Storage Tank Conference and Trade Show Galveston, Texas
Maritime and Port Authority of Singapore, Singapore
www.nistm.org
www.smw.sg/index
29th September
20th-21st April
MEDIA PARTNER
FPS
MEDIA PARTNER
Tank Storage Association E.ON Lounge, Ricoh Arena, Coventry
Liverpool Exhibition Centre, Liverpool FPS Expo is targeted at the UK’s oil distribution industry. Senior professionals from the UK, US and Europe will attend the event to learn about the latest industry innovations. www.fpsshow.co.uk 20th – 22nd April
OFFICIAL MEDIA PARTNER
NISTM 18th Annual International Aboveground Storage Tank Conference & Trade Show Florida, Orlando, US
www.tankstorage-event.org.uk
OCTOBER 2016 1st-4th October
MEDIA PARTNER
50th EPCA Annual Meeting Budapest, Hungary www.epca.eu 3rd-5th October
www.nistm.org
MEDIA PARTNER
Global LNG Tech Summit Barcelona, Spain
MAY 2016 16th – 17th May
MEDIA PARTNER
Oil terminal Caspian region
www.lngsummit.com 10th-13th October
MEDIA PARTNER
API Tank, Valves, and Piping Conference and Expo
Astana, Kazakhstan www.oilterminal-caspian.com 23rd-25th May
27th-28th September
Las Vegas, Nevada, US SILVER SPONSOR AND MEDIA PARTNER
www.api.org
ILTA
26th-27th October 2016
Houston, Texas
9th Asian Downstream Week 2016
www.ilta.org
Sands Expo & Convention Centre, Singapore www.downstream.asia.com
JUNE 2016 1st – 3rd June
OFFICIAL MEDIA PARTNER
OFFICIAL MEDIA PARTNER
NOVEMBER 2016
Oil terminal management: Logistics for traders
2nd – 3rd November
www.oilterminalmanagement.com
StocExpo Shanghai
SEPTEMBER 2016
Shanghai World Expo Exhibition and Convention Centre, Shanghai
7th-8th September
www.stocexposhanghai.com MEDIA PARTNER
European Bulk Liquid Storage Tarragona, Spain This two day event will bring together key industry stakeholders from the sector to address a need to invest in storage facilities and expansion of terminals with a focus on safety and environmental standards. Hear more about latest technologies, how to increasing terminal efficiency and strategies for cost management. www.wplgroup.com/aci/event/european-bulk-liquid-storage
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16-17th November
OFFICIAL MAGAZINE
Tank Storage Germany Hamburg Messe Taking place in Hamburg, a major player in the international bulk liquid storage industry, Tank Storage Germany will provide an opportunity for manufacturers and suppliers to showcase their products and services. www.tankstoragegermany.com
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
EVENTS l CALENDER
ADVERTISERS’ INDEX Alma Carbovac
16
AMEX Inc
53
API Tanks, Valves and Piping Conference
46
Atlas Tank
49
AUMA
9
Brodie 37 Cashco 12 CB&I
40
Chemie-Tech 5 Consolidated Fabrication
STORAGE IS GETTING SOCIAL What the storage terminal sector has been saying on Twitter. Follow @tankstorageinfo for the latest news @wsmco Oil storage levels are highest on 86 years. An agreement to keep production levels where they are does not mean oil prices will soar.
43
CST Covers
Front Cover
D3 Technologies
65
Discus Engineered Products
30, 31
Emco Wheaton
54, 55
@iSolutions_Inc Players in the salt cavern storage sector are making the best of an industry downturn.
Gastech 75 Hayward Baker
62
HHM Oilfield and Automation Machinery
23
ILTA
66
James Machine Works
14
@GonzaHurtado7 Vopak aims for strategy above volume, even as oil storage booms
Kanon 17 Koike Aronson
19
Lightning Master
Inside Front Cover
Matrix Applied Technologies
Inside Gatefold
Mesa ETP
68
Midwest Steel
28
Milton Roy
74
NISTM
69
Nordic Storage
25
Oil Terminal Management
70
Omni Valve
@tradingpoints “It takes ~ 30 days to construct an oil tank so it’s a safe bet the amount of U.S. oil storage is significantly larger than anybody knows”
@michael_curto Brent spreads tell the story ......plenty of storage to go around yet for oil .....
2
Oreco 72 PALA
35
Plasticon
39
@SkipYorkEnergy Despite strong #Oil supply growth in ‘15, beginning of storage draws sets up rebalancing in ‘16 – a long process
Protego 57 Rosen 60 Rotary Engineering
Outside Back Cover
SafeRack 15 Scully 20 SGB
24
Singapore Maritime Week
79
SkyBitz Tank Monitoring
6
Tank Farm Services
29
Tank World Expo
21
@MarkHorgas Crude oil pouring into Cushing, Oklahoma “Pipeline Crossroads of the Word”. World’s largest Oil Storage facility.
@steve_hanke #Rotterdam’s #oil storage is reaching capacity and 50 tankers are waiting in its hub. #OilGlut
TEPSA 18 Timm Elektronik
59
Tranter 11 U.S Crude Exports Congress
77
United Riverhead Terminal
52
@TankStorageInfo #funfactfriday Did you know Texas has enough crude #oil reserves to fill the Empire State Building 1458 times over! #alotofcrude #storage
Zwick 13 Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2016 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 Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.
APRIL/MAY 2016 VOLUME 12 ISSUE NO.2
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Smartthinking. thinking.Safe Safehands. hands. Smart
Extraordinary Heritage,
Uncompromising Expertise Extraordinary Heritage, Extraordinary Uncompromising Expertise Uncompromising
ROTARY AT A GLANCE ROTARY is one of the region’s leading oil and gas infrastructure services ROTARY companies AT A GLANCEwith extensive international experience ROTARY AT A GLANCE offering fully integrated engineering design, procurement, ROTARY is one of theand region’s leading oil and gas infrastructure construction (EPC) maintenance services to the oil and ROTARY is one of the region’s leading oil and gas infrastructure services companies with extensive international experience gas, petroleum, petrochemical and pharmaceutical industries. services companies with extensive international experience offering fully integrated engineering design, procurement, offering fully integrated engineering design, procurement, construction (EPC) and maintenance services to the oil and Headquartered in and Singapore, Rotary has established a strong construction (EPC) maintenance services to the oil and gas, petroleum, petrochemical and pharmaceutical industries. gas, petroleum, petrochemical pharmaceutical industries. presence in the Asia-Pacificandregion and continues to make
itsHeadquartered mark as a global player.Rotary Established in 1972, Rotary has in Singapore, has established a strong Headquartered in Singapore, Rotary has established a strong forged a reputation built onregion its hallmark traitsto ofmake providing presence in the Asia-Pacific and continues presence in the Asia-Pacific region and continues to make its mark as a global player. Established in 1972, Rotary has quality services, within budget, safely and on-time delivery. its mark as a global player. Established in 1972, Rotary has forged a reputation built on strength its hallmark traits 7,000 of providing Today Rotary boasts a total of about employees forged a reputation built on its hallmark traits of providing quality services, within budget, safely and on-time delivery. which a within highly budget, and multi-skilled workforce that forms qualityinclude services, safely and on-time delivery. Today Rotary boasts a total strength of about 7,000 employees Today Rotary boasts acore totalEPC strength of about 7,000 employees the mainstay of its services. which include a highly and multi-skilled workforce that forms which include of a highly the mainstay its coreand EPCmulti-skilled services. workforce that forms the mainstay of its core EPC services. Singapore remains a key market for Rotary while it actively seeks
Singaporeopportunities remains a key market for Rotary whilehas it actively seeks and business overseas, Rotary subsidiaries Singapore remains a key market for Rotary while it actively seeks business companies opportunities overseas, Rotary has subsidiaries and associate in Malaysia, Thailand, Vietnam, Indonesia, business opportunities overseas, Rotary has subsidiaries and associate companies in Malaysia, Thailand, Vietnam, Indonesia, India, Saudi Arabia, in Oman and Thailand, the United Arab Indonesia, Emirates. associate companies Malaysia, Vietnam, India, Saudi Arabia, Oman and the United Arab Emirates. India, Saudi Arabia, Oman and the United Arab Emirates.
Rotary is ISO 9001, ISO 14001, OHSAS certified a on the mainboard of Singapore Exchange since 199 Rotary is ISO 9001, ISO 14001, OHSAS certified and is listed Rotary is Rotary’s ISO 9001, ISO 14001, OHSAS certified and is listed include: on the mainboard ofcapabilities Singapore Exchange since 1993. on the mainboard of Singapore Exchange since 1993.
• EPC for bulk liquid storage terminals
Rotary’s capabilities include: Rotary’s capabilities include: • EPC for offsite & utilities • EPC for bulk liquid storage terminals • EPC for bulk liquid storage terminals • Front-end engineering design (FEED) & detailed e • EPC for offsite & utilities • EPC for offsite & utilities • Mechanical works including piping & equipment i • Front-end engineering design (FEED) & detailed engineering • Front-end engineering design (FEED) & detailed engineering • Electrical & instrumentation works • Mechanical works including piping & equipment installation • Mechanical works including piping & equipment installation • Electrical & instrumentation works • Civil, structural & building works • Electrical & instrumentation works • Civil, structural & building works • Maintenance of process plants & facilities • Civil, structural & building works • Maintenance of process plants & facilities • Modules fabrication • Maintenance of process plants & facilities • Modules fabrication • Modules fabrication • Specialised services • Specialised services • Specialised services
RotaryEngineering Engineering Limited (HQ) Rotary Limited (HQ) Rotary 82 Engineering Limited (HQ) 17 Tuas Avenue 20 Singapore 638828 • Tel: (65) 6866 0800 • Fax: (65) 6866 0999 17 Tuas Avenue 20 Singapore 638828 • Tel: (65) 6866 0800 • Fax: (65) 6866 0999 17 Tuas Avenue 20 Singapore 638828 • Tel: (65) 6866 0800 • Fax: (65) 6866 0999 Website: www.rotaryeng.com.sg • Email: bdd@rotaryeng.com.sg Website: www.rotaryeng.com.sg • Email: bdd@rotaryeng.com.sg Website: www.rotaryeng.com.sg • Email: bdd@rotaryeng.com.sg
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