Tank Storage Magazine April/May 2019 by Tank Storage Magazine

APRIL/MAY 19 Volume 15 Issue No.2

LEVERAGING STORAGE MARKET OPPORTUNITIES

As the market shows signs of improvement, GP Global talks about plans to future strengthen its storage terminal business

THE FUTURE OF OIL DEMAND IN A DECARBONISED SOCIETY Tackling climate change in transportation could substantially shrink oil demand

REGIONAL FOCUS: MIDDLE EAST

The voice of the storage terminal industry

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

CONTENTS

Contents

News TERMINAL NEWS 09

Africa & Middle East

12 Europe 15 The Americas 20 Asia 21 Incident report

Storage in the Middle East 22

Tank terminal update: Middle East

34 Leveraging storage market opportunities 39 Iranian oil production trajectory faces key deadline in May 44 Growing a storage concept 53 Middle Eastern oil & gas growth on the horizon 57 Middle East â&#x20AC;&#x2DC;big oilâ&#x20AC;&#x2122; to boost global petrochemicals footprint

Market analysis

48 The future of oil demand in a decarbonised society 50 NOCs unite amid winds of change APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

CONTENTS

Contents

Technical features 60 Technical news

67 Two stage vapour control systems for ultra-low VOCs emission 72

Leak measurement system allows better operator decision-making

75 Water jet cutting techniques saved refinery time and money 78

Novel thermal oxidiser delivers outstanding energy efficiency

81 Lowtank: a transition to safer methods

Events 24

A night of excellence

30 The terminal of tomorrow 32

The start of something new

Speaker interviews Interviews with some of the speakers at the inaugural UK chemical industries supply chain expo & conference (ChemUK 2019) at the Yorkshire Event Centre, Harrogate, UK on May 1 & 2

88 Advertisersâ&#x20AC;&#x2122; index 89 Upcoming events 02

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

CONTENTS

VALUE – Over 95% of AT&V’s 3,500 projects were awarded on lump sum price with industry leading schedules. From gas to cryogenic storage, contact AT&V to incorporate All The Value in your next project.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

CONTRIBUTORS

Contributors APRIL/MAY 19 Volume 15 Issue No.2

APRIL/MAY 19 Volume 15 Issue No.2

LEVERAGING STORAGE MARKET OPPORTUNITIES

As the market shows signs of improvement, GP Global explains its plans to further strengthen its storage terminal business

THE FUTURE OF OIL DEMAND IN A DECARBONISED SOCIETY Tackling climate change in transportation could substantially shrink oil demand

REGIONAL FOCUS: MIDDLE EAST

The voice of the storage terminal industry

Front cover courtesy of J de Jonge

PUBLISHER Margaret Dunn t: +44 (0)20 3551 5721 e: margaret@tankstoragemag.com

EDITOR Jasmin McDermott t: +44 (0)20 3196 4402 e: jasmin@tankstoragemag.com

INTERNATIONAL SALES MANAGER David Kelly t: +44 (0)20 3196 4401 e: david@tankstoragemag.com

MARKETING MANAGER John Dowd t: +44 (0)20 3196 4389 e: john.dowd@easyfairs.com

DATABASE MANAGER Alison Church t: +44 (0)20 3196 4305 e: alison.church@easyfairs.com

SUBSCRIPTION MANAGER John Darke t: +44 (0)20 3196 4383 e: john.darke@easyfairs.com

CEO EASYFAIRS UK & GLOBAL Matt Benyon t: +44 (0)20 3196 4310 e: matt.benyon@easyfairs.com

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@tankstorageinfo Tank Storage Magazine Tank Storage Magazine

Tank Storage Magazine, (ISSN 1750-841X) is published seven times a year (in February, March, May, August, September, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The US annual subscription price is $243. Airfreight and mailing in the USA by agent named WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. Periodicals postage paid at Jamaica NY 11431. US Postmaster: Send address changes to Tank Storage Magazine, WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. 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 2019 VOLUME 15 ISSUE NO.2

CONTRIBUTORS

0151 355 2685 www.fenelontanks.com info@fenelontanks.com

Fenelon Storage Tanks offer customers a unique one-stop shop service for all new build tank projects and repair/refurbishment requirements. Expertise from our in-house Design Department and fully equipped workshop/fabrication facilities provide support for our on-site construction teams. • Technical advice and support for clients. • Finite Element Analysis reports using the latest SolidWorks 3D modelling simulation software. • Calculations and drawings for all types of storage tanks. • All designs carried out to the latest British, European or API tank codes. • Certified EEMUA and API 653 Storage Tank Inspectors. • Professional Project Management/HSQA Department. • Fully qualified & employed Site Management, experienced Tank Erectors and Welders. • Employed Appointed Persons for the planning and supervision of crane lifting operations.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

COMMENT

Change is coming

lobal oil markets are entering a ‘new normal’ as they undergo a period of extraordinary change, with the implications set to have a long-lasting impact on energy security and market balances. One of the main drivers of this extraordinary change is the strength of the US shale industry. While the intensity of the shale oil revolution took many by surprise, the strength of this profitable part of the industry is set to trigger a rapid transformation in world oil markets, elevating the US to become the main driver of global oil supply growth over the next five years. Coupled with one of the biggest changes in the product markets – IMO 2020 – as well as geopolitical uncertainties, nothing is normal anymore. The International Energy Agency’s annual oil market forecast highlights the extent to which these extraordinary times are having an impact on every facet of the oil industry. ‘Everywhere we look, new actors are emerging, and past certainties are fading,’ says IEA executive director Dr Fatih Birol. 2019 will certainly be an interesting year as these extraordinary changes play out. However, despite these global trade uncertainties, the outlook in the Middle East remains strong. In this edition we examine current market developments in the region, including the May 4 deadline for the Iran sanction waiver extensions by President Trump, the focus on petrochemical production in the region as well as the growth of NOC-NOC alliances.

One article worth a read is a piece by Abrial Gilbert-d’Halluin from the European Climate Foundation, who examines how tackling climate change in transportation could substantially shrink oil demand. Gilbertd’Halluin argues that as society focuses more on meeting its decarbonisation goals, petroleum companies should start investing in businesses that provide value for society, otherwise they could be pushed out of the market. We speak exclusively to Brooge Petroleum and Gas Investment Company about its second phase of growth at its Fujairah terminal, which will elevate the facility to become one of the largest terminals by storage capacity in the Port of Fujairah. And executives at GP Global talk to Tank Storage Magazine about how they plan to further strengthen its storage terminal business through emerging market opportunities. This publication is official media partner for the inaugural ChemUK 2019 event in Harrogate, UK and will also be distributed at the FPS Expo in Liverpool, UK. The team will be at both of these events, so please feel free to come and say hi. I hope you enjoy the read.

With best wishes, Jasmin

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

COMMENT

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS

All the latest terminal storage news from around the globe

13 CLH invests €10 million to expand Barcelona storage terminal

18 Investigations launched following Intercontinental Terminals fire

10 ADNOC to build world’s largest underground crude oil storage facility

Africa & middle east

the americas

09 Saudi Aramco to acquire stake in Chinese petrochemical

15 Inter Terminals reports financials against challenging

complex

market conditions

Gibson Energy announces more capacity at Hardisty terminal

Construction starts at new South Africa storage terminal

10 ADNOC to build world’s largest underground crude oil storage facility

12 Odfjell Terminals reports strengthened financials

Venezuela to pay $8.7 billion compensation bill to ConocoPhillips

Petrobras completes sales of Paraguay operations

ArcLight to acquire American Midstream

18 US to lead global oil supply growth

EUROPE

16 Navigator Energy Services to expand pipeline & storage system

Nuevo Midstream buys Republic Midstream

Maine storage facility to reduce emissions following Clean

Ineos to invest £1 billion in UK energy system

Air Act violations

Macquarie & West Street complete HES International

Investigations launched following Intercontinental Terminals fire

acquisition 13 CLH invests €10 million to expand Barcelona storage terminal 14 Global Petro Storage to develop railcar connection at Port

Asia 20 ADNOC & Korea sign agreements to explore oil storage expansion

Komipo & Vitol sign LNG MoU

of Amsterdam

Sinopec starts operations at Yangpu terminal berths

Vitol acquires further stake in bitumen JV

GrainCorp to sell Australian bulk liquid storage terminals

Visit www.tankstoragemag.com for the latest news and developments

CONNECT WITH US 08

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS l AFRICA & MIDDLE EAST

TERMINAL NEWS AFRICA & MIDDLE EAST

Saudi Aramco to acquire stake in Chinese petrochemical complex Saudi Aramco aims to acquire a 9% stake in Zhejiang Petrochemical’s 800,000 barrels per day integrated refinery and petrochemical complex.

his is part of three MoUs it has signed aimed at expanding its downstream presence in the Zhejiang province, one of the most developed regions in China. The first agreement was signed with the Zhoushan government to acquire its 9% stake in the project. The second agreement was signed with Rongsheng Petrochemical, Juhua Group, and Tongkun Group, who are the other shareholders of Zhejiang Petrochemical. Saudi Aramco’s involvement in the project will come with a long-term crude supply agreement and the ability to utilise Zhejiang Petrochemical’s large crude oil storage facility to serve its customers in the Asian region. Phase I of the project will include a newly built 400,000 barrels per day refinery with a 1.4 mmtpa ethylene cracker units, and a 5.2 mmtpa aromatics unit. Phase II will see a 400,000 barrels per day refinery expansion, which will include deeper chemical integration than Phase I.

Construction starts at new South Africa storage terminal Construction of Oiltanking Grindrod Calulo and Transnet National Ports Authority’s new liquid bulk tank terminal In the Port of Ngqura has started with the turning of the first sod. This comes ahead of the planned decommissioning and rehabilitation of the existing liquid bulk facilities at the neighbouring Port of Port Elizabeth, which will pave the way for Ngqura’s establishment as a new petroleum trading hub for southern Africa. The new facility will provide storage and marine infrastructure to support the overall petroleum demand projections for South Africa. Liquid bulk products will be transported to the Port of Ngqura via ship and piped to the tank terminal prior to local supply and/or local and global re-export. The new facility will service the oil majors, new entrants into the South African oil industry as well as international traders – all supporting the local shipping industry. Civil, mechanical and electrical contractors will be appointed shortly. Mkhuseli Faku, chairman of OTCALULO, says: ‘Having been awarded the concession to develop a liquid bulk storage and handling facility in the Port of Ngqura, OTCALULO is now embarking on the first phase of construction.’ The terminal will comprise 790,000 m3 of capacity. Phase 1 will cater for dedicated jetty pipelines, bulk storage for up to 200,000 m3, road loading with a vapour recovery unit, firefighting facilities and site drainage facilities. Provision has been made for the receipt, storage and distribution of LPG. Operations at the terminal are due to start at the end of 2020.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS l AFRICA & MIDDLE EAST

ADNOC to build world’s largest underground crude oil storage facility ADNOC has signed an agreement with South Korea’s SK Engineering and Construction to build the world’s largest underground crude oil storage facility.

he underground facility will have the capacity to store 42 million barrels of crude oil in Fujairah in the UAE. The EPC contract is for the

construction of three underground storage caverns, each with a capacity of 14 million barrels, deep below ground level. This contract is the largest for a single

project award for underground crude oil storage in the world and is valued at AED 4.4 billion ($1.21 billion). The ADNOC Fujairah

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Underground Storage will strengthen the UAE’s position as a reliable supplier of crude oil as well as give ADNOC greater flexibility, allowing it to manage and optimise its delivery schedule and support its broader move into trading. It will also enhance its position as one of the key trading and supply partners in Fujairah’s growth as a global oil and products storage and trading hub. His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO says: ‘Construction of the world’s largest single underground project award ever awarded for oil storage will enhance the UAE’s energy security. Importantly, developing this strategic oil storage mega facility in Fujairah will also support and further enable our broader trading ambitions, strengthening our ability to respond efficiently and competitively to the needs of our customers, while also providing ADNOC with greater flexibility to proactively respond to market needs and commercial opportunities.’ Works started in 2018 and the first phase of the facility, involving the construction of an access tunnel, has been completed. When complete in 2022, the facility will be one of the largest facilities of its kind in the world and able to store three different types of crude oil, providing ADNOC with increased flexibility to export crude through Fujairah’s Arabian Sea oil terminal.

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS l THE AMERICAS

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TERMINAL NEWS l EUROPE

TERMINAL NEWS EUROPE

Odfjell Terminals reports strengthened financials Odfjell Terminals reports strengthened financial results in the fourth quarter 2018, with revenue growth in its Asian and US facilities.

dfjell SE’s terminal division delivered an EBITDA of $4.7 million in the fourth quarter of 2018 compared to $3.9 million in the previous quarter. Revenues in the US region grow by 3% in comparison to the previous quarter thanks to a continuing high occupancy rate of 98% and increasing throughput at the Houston terminal. The Asian region grow by 15% in comparison to the previous quarter with all terminals in the region contributing. The fourth quarter 2018 result was impacted by higher G&A related to the restructuring of the Odfjell Terminals organisation. The company concluded the restructuring of the organisation in the fourth quarter. Odfjell Terminals B.V. and the terminal management companies are now wholly owned subsidiaries of Odfjell SE. Tank terminals are now operated through two joint ventures, one for the

Asia terminals and one for the US terminals. Following the conclusion of the sale of Lindsay Goldberg’s shareholding in Rotterdam and Antwerp, LG has entered into an agreement to sell its 49% shareholding in Odfjell Terminals US terminals to funds managed by Northleaf Capital Partners. Kirstian Mørch, CEO of Odfjell SE, says: ‘4Q18 concluded a challenging year for chemical tankers, but the market improved towards the end of the quarter. This is consistent with our view that the market has healthy fundamentals. ‘We do expect continued volatility but we believe our markets have passed the bottom, and we therefore expect improved performance in 1Q19. We are pleased to welcome a new partner in our US terminals that positions us to further develop our US business.’

Ineos to invest £1 billion in UK energy system Ineos has announced plans to invest £1 billion in its UK assets on various projects, including in the Forties Pipeline System. The biggest investment being made is in the Forties Pipeline System, which comprised £500 million to transform the asset and extend the life of the pipeline by at least 20 years, into the 2040s. Ineos intends to overhaul the reliability of the 500km pipeline system, including modernising the environmental systems and implementing the latest technology into its systems. This investment will rejuvenate FPS, delivering a long-term asset that meets the needs to North Sea oil and gas producers. The system, which opened in 1975, is a strategic asset in the UK that can transport up to 600,000 barrels of North Sea oil onshore for refining every day. It transports 40% of the UK’s oil and gas to the mainland. Andrew Gardner, Ineos FPS CEO, says: ‘North Sea oil and gas producers are telling

us that they want to be in the North Sea well into the 2040s, so we are making this commitment to be there with them. ‘Following the acquisition of FPS in 2017 we are now embarking on a period of investment that will guarantee that the system can support them for decades to come.’ Other investments announced by the company include a £350 million investment in the Grangemouth site to develop a new steam and power plant as well as £150 million in Hull to construct a new vinyl acetate monomer plant. Sir Jim Ratcliff adds: ‘At an uncertain moment for the UK, Ineos has confidence in its businesses and is committed to continue investing in manufacturing and high skilled jobs in the UK.’

Macquarie & West Street complete HES International acquisition Macquarie Infrastructure and Real Assets and West Street Infrastructure Partners, managed by Goldman Sachs, have completed the acquisition of HES International. The companies have acquired HES International from Riverstone Holdings and the Carlyle Group. The new shareholders, who each control 50% of HES, look forward to working in partnership with the executive board and the employees to further develop and grow the company. MIRA and WSIP are supportive of the management’s strategy to grow HES through investment in new projects and to strengthen the existing operations of the terminals. In a statement, the company says that the HES management team is successfully implementing a €700 million transformation and growth strategy, which includes the construction of the 1.3 million m3 HES Hartel Tank Terminal in the Port of Rotterdam. This strategy enables HES to grow into a significant tank terminal operator in Nortwest Europe, while further strengthening its position as one of the largest diversified dry bulk terminal operators in Europe.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS l EUROPE

CLH invests €10 million to expand Barcelona storage terminal CLH has invested more than €10 million to increase its oil product storage capacity and improve operations at its Barcelona facility.

he Spanish logistics company has constructed two new storage tanks of 11,000 m3 each, representing a total investment of more than €3 million. In addition, CLH has allocated €7 million to operational improvements in the tanks, increasing pump flows and improving the safety and environmental protection measures of the facility. These investments will lead to an increase in the productivity of the plant, as well as providing flexibility to attend more effectively to the new demands of customers. The main investment here has been dedicated to the adaptation of six tanks to enable them to store different products at a cost of €2.4 million. This enables the company to better meet current market demands. A further €1.8 million has been allocated to the construction of a new water treatment unit. Various improvements have also been made to the safety and environmental protection systems at the terminal, including improvements to the fire protection system.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS l EUROPE

Global Petro Storage to develop railcar connection at Port of Amsterdam Global Petro Storage has entered into an agreement with the Port of Amsterdam to develop a railcar connection on land adjacent to GPS’ existing storage facility.

PS intends to develop a rail connection to the public network and to points across Europe that will increase its efficiency and offerings to clients. The sustainable transport development complements Port of Amsterdam’s strategy, which

underscores the importance of good rail connections to and from the Amsterdam port region. Peter Vucins, director of EMEA at GPS, says the expansion will enable GPS to capture future opportunities. The first step has been taken by asking for permits for the railcar connection.

Vitol acquires further stake in bitumen JV Vitol has acquired a further 50% of VALT, the bitumen joint venture with Sargeant Marine. Once complete, VALT with be 100% owned by Vitol and will be integrated into Vitol’s core trading business. The acquisition will make Vitol a leader in the trading, storage and marine transportation of asphalt products globally, with a dedicated fleet of 11 specialised vessels. Volumes are around 1.4 million metric tonnes of asphalt per annum, managed from hubs in Asia, Europe and the US. The transaction, subject to conditions, is expected to close in the second quarter of 2019.

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TERMINAL NEWS l THE AMERICAS

TERMINAL NEWS THE AMERICAS

Inter Terminals reports financials against challenging market conditions Inter Pipeline’s storage segment was impacted by challenging market conditions in Europe, affecting demand for capacity.

n its 2018 financial results, the company’s funds from operations for its terminal division were down from $97.6 million in 2017 to $65.9 million in 2018 and its fourth quarter 2018 funds from operations were also down. At the end of 2018, the company completed the acquisition of NuStar Energy’s European bulk liquid storage business for $270 million. The acquired business consists of seven high-quality storage terminals strategically located

throughout the UK and within the Port of Amsterdam. Storage demand for certain petroleum products in Europe continued to be impacted by a backwardated commodity pricing environment. Average utilisation rates during 2018 were 77% compared to 96% in 2017. Utilisation in the fourth quarter averaged 68% across all terminals. Terminals in Sweden, the UK, the Netherlands and Germany all posted

Gibson Energy announces more capacity at Hardisty terminal Gibson Energy plans to build an additional 500,000 barrels of new capacity at its Hardisty Terminal. The announcement follows the signing of a long-term agreement with an investment grade customer, the closing of the divestitures of Wholesale Propane and non-core Environmental Services North, and continued execution on its infrastructure growth projects. Steve Spaulding, president and CEO, says: ‘We continue to demonstrate very strong execution on our infrastructure growth projects, with three new tanks totaling 1.1 million barrels at our Hardisty Terminal as well as the Viking Pipeline entering service ahead of schedule and in line with budgeted capital. ‘In addition, the remaining tanks currently under construction at our Hardisty Terminal are ahead of schedule and we have also sanctioned the construction of an additional tank, underpinned by a long-term agreement and consistent with our outlook of two to four tanks per year over the medium-term. Based on commercial discussions, we expect to sanction several additional projects over the course of 2019, and importantly, we will ensure we remain fully funded from our entire sanctioned capital programme.’ The announced expansion represents the fourth phase of development to be constructed at the hop of the hill portion of the terminal. It is expected to be in service in the fourth quarter of 2020.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

rates in excess of 90%. Unfavourable market conditions continued to impact Danish operations resulting in depressed utilisation rates. However, recent contracts have improved rates, particularly in Denmark. In January, utilisation rates across all European terminals rose to 78%. Overall, Inter Pipeline’s annual funds from operations totaled a record $1.1 billion, an increase of 10% compared to 2017.

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TERMINAL NEWS l THE AMERICAS

Navigator Energy Services to expand pipeline & storage system Navigator Energy Services is significantly expanding its Glass Mountain Pipeline System, including adding new segregated crude grades and additional storage and transportation capacity.

he project will include multiple new origin points, and new market access at Cushing, Oklahoma. The system currently serves crude oil and condensate producers and other shippers in the STACK, Woodford/Cana, Granite Wash and Mississippi Lime areas of the Anadarko Basin in central Oklahoma. The expansion will add five new mainline origination points in Canadian, Kingfisher and Grady Counties, Oklahoma, further extending the service into the STACK, Woodford/Cana, Merge and SCOOP plays. The project will include 70 miles of new transportation mainlines and 750,000 barrels of additional storage capacity. Underpinning the expansion are multiple long-term agreements with top tier operators representing more than 50,000 barrels per day of existing production and almost 600,000 operated acres, bringing Navigator’s total dedicated acreage in Oklahoma to more than 800,000 acres. Navigator has begun initial construction of the Cushing Express Pipeline, a new 20-inch pipeline to transport segregated crude grades from the production field to its destinations in Cushing. It will add an initial 250,000 bpd of incremental deliverability.

Venezuela to pay $8.7 billion compensation bill to ConocoPhillips An international arbitration tribunal has ordered the government of Venezuela to pay ConocoPhillips $8.7 billion in compensation for the government’s unlawful expropriation of ConocoPhillips’ investments in the country in 2007. The ICSID tribunal ruled in 2013 that the expropriation of ConocoPhillips’ substantial investments in the Hamaca and Petrozuata heavy crude oil projects and the offshore Corocoro development project violated international law. The current ruling addresses compensation - the timing and manner of collection still needs to be determined. Kelly B. Rose, senior vice president, legal, general counsel and corporate secretary of ConocoPhillips, says: ‘We welcome the ICSID tribunal’s decision, which upholds the principle that governments cannot unlawfully expropriate private investments without paying compensation.’ In separate and independent legal action in April 2018, an international arbitration tribunal awarded the company $2 billion from Petróleos de Venezuela, S.A. (PDVSA), Venezuela’s state-owned oil company, and two of its subsidiaries. The ruling followed PDVSA’s failure to uphold its contractual commitments in response to Venezuela’s unlawful expropriation of ConocoPhillips’ investments in the Hamaca and Petrozuata projects. In August last year, ConocoPhillips announced it entered into a settlement agreement with PDVSA to recover the full amount owed under that award. In the early 1990s, Venezuela created a new fiscal framework to attract foreign investment in its heavy oil projects in the Orinoco Belt and elsewhere. Relying on these terms, ConocoPhillips helped Venezuela to develop the Petroxuata, Hamaca and Corocoro projects by providing technology and substantial long-term investments to the government of Venezuela. However, in the summer of 2007, the Venezuelan government expropriated ConocoPhillips’ investments in their entirety without compensation.

In response to demand and increased throughput needs, Navigator completed a new interconnection with Cushing terminals owned by a subsidiary of Magellan Midstream Partners. The Magellan terminal will provide Navigator with access to a high-capacity distribution network, reaching new markets and 1.75 million barrels of operating storage to break out Navigator’s neat crude and condensate grades. As a result of its Magellan terminal position, Navigator’s Cushing tankage storage capacity is 2.75 million barrels. The increase in storage capacity allows Navigator to provide its customers a bulk storage solution for each of its crude and condensate segregations prior to batching downstream. The new destination and storage will also seamlessly integrate into Navigator and Magellan’s proposed Voyager Pipeline, which will provide Navigator customers a direct path from the Oklahoma production field to the Gulf Coast. Once complete, the system will include more than 440 miles of pipeline, 10 truck injection stations, 4.3 million barrels of storage to accommodate five neat grades of crude oil and condensate, and pipeline capacity to transport in excess of 450,000 bpd.

Petrobras completes sales of Paraguay operations Petrobras has completed the sale of its entire equity interest in Petrobras Paraguay Distribución, Petrobras Paraguay Operaciones y Logística and Petrobras Paraguay Gas SRL to the Copetrol Group. The companies sold operate in Paraguay in the distribution and sale of fuels, LPG, lubricants and other special products through a network of 201 service stations, as well as a proprietary storage terminal and operations at three airports. The transaction was concluded with the payment of $331.5 million by Paraguay Energy to PIB, after fulfilling all precedent conditions, in addition to $49.3 million which had already been paid upon signing of the agreement, resulting in a cash inflow of $380.8 million.

ArcLight to acquire American Midstream An affiliate of ArcLight Energy Partners has announced plans to acquire American Midstream Partners as part of a definitive agreement and plan of merger. Under the agreement ArcLight will acquire all outstanding common units of American Midstream not already held by the company at a price of $5.25 per common unit. The merger is expected to close in the second quarter of 2019 subject to meeting certain customary conditions.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS l GLOBAL

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TERMINAL NEWS l THE AMERICAS

US to lead global oil supply growth The US will drive global oil supply growth over the next five years as a result of its flourishing shale industry.

ccording to the International Energy Agency’s (IEA) annual oil market forecast, the strength of its shale industry in the coming years will trigger a rapid transformation of world oil markets. By the end of the forecast, oil exports from the US will overtake Russia and close in on Saudi Arabia, bringing greater diversity of supply. While global oil demand growth is set to slow down, it will still increase at an annual average of 1.2 mb/d to 2024, according to the Oil 2019 report. The organisation says that it still continues to see no peak in oil demand, as petrochemicals and get fuel remain the key drivers of growth, particularly in the US and Asia. This will offset a slowdown in gasoline due to the growth of electric cars and

efficiency gains. The IEA says: ‘Global oil markets are going through a period of extraordinary change, with long-lasting implications on energy security and market balances throughout our forecast period to 2024. The US is increasingly leading the expansion in global oil supplies, with significant growth also seen among other non-OPEC producers, including Brazil, Norway and Guyana.’ The US’ ability to transform itself into a major exporter is due to the ability of the US shale industry to respond quickly to price signals by ramping up production. The US accounts for 70% of the total increase in global capacity to 2024, adding a total of 4 mb/d, which follows growth of 2.2 mb/d in 2018.

Nuevo Midstream buys Republic Midstream Nuevo Midstream Dos has entered into an agreement with an affiliate of ArcLight Capital Partners to buy Republic Midstream. Republic owns and operates a crude oil gathering, storage and intermediate transportation system in the Eagle Ford Shale. Nuevo Midstream plans to expand the system with 300,00 barrels of crude oil storage and a six-bay truck station. The system, which consists of 1,000 miles of gathering pipeline that feeds a central delivery point, also includes a 26-mile intermediate pipeline that moves volumes from the central delivery point to the Kinder Morgan crude and condensate pipeline and the Eagle Ford crude oil pipeline system, which is owned and operated by Enterprise. The Kinder Morgan and Enterprise pipelines deliver crude and condensate to multiple terminals with access to refineries, petrochemical plants and export terminals on the Texas Gulf Coast. The transaction is expected to close in the second quarter of 2019.

Maine storage facility to reduce emissions following Clean Air Act violations A storage facility in Maine has agreed to reduce its emissions and pay a fine after it violated certain provisions of the Clean Air Act. Global Companies, which has a facility in South Portland that stores oil and asphalt, has reached a settlement with the US Environmental Protection Agency and the US Department of Justice to limit the emissions of volatile organic compounds from heated tanks in South Portland that store asphalt and residual #6 fuel oil. The company will also install mist eliminator systems on the tanks to address local air impacts. Global will also invest at least $150,000 in a project to encourage the replacement or upgrades of wood stoves in the area. It will pay a $40,000 penalty to settle the charges by EPA that it violated certain provisions of the Clean Air Act. Data from emissions testing revealed that the tanks at Global’s South Portland facility emit VOCs at substantially higher levels than previously estimated. Under the agreement, Global will apply for a revised permit from Maine that will limit the amount of #6 oil and asphalt the company can pass through the facility and will limit the number of days it can heat the tanks and the number of tanks that can store #6 oil at any one time.

Dr Fatih Birol, the IEA’s executive director, says: ‘The second wave of the US shale revolution is coming. It will see the US account for 70% of the rise in global oil production and some 75% of the expansion in LNG trade over the next five years. This will shake up international oil and gas trade flows, with profound implications for the geopolitics of energy. ‘These are extraordinary times for the oil industry as geopolitics become a bigger factor in the markets and the global economy is slowing down. Everywhere we look, new actors are emerging, and past certainties are fading. This is the case in both the upstream and the downstream sector. And it’s particularly true for the US, by far the stand-out champion of global supply growth.’

Investigations launched following Intercontinental Terminals fire Investigations have been launched following a massive fire at Intercontinental Terminals Company’s Deer Park storage facility. The blaze, which started on March 17, took more than three days to extinguish and engulfed 11 aboveground storage tanks containing a variety of hydrocarbons including naphtha and xylene. Large plumes of black smoke could be seen covering parts of Houston and multiple orders were issued for community members to shelter in place. In addition, air quality warnings were also issued. The US Chemical Safety Board has started an investigation into the cause of the blaze, which will include interviews as well as visiting the scene to collect evidence. At the time of writing, the US Coast Guard remained unsure as to when the Houston Ship Channel, which was partly closed following the fire, would fully reopen as crews continue to clean up chemicals that seeped into the channel. Almost 20 miles of rubber barriers have been deployed to contain the spill. In addition, the Labour Department’s Occupational Safety and Health Administration has also launched an investigation. Texas Attorney General Ken Paxton has also filed an environmental lawsuit against the company for air pollution in violation of the Texas Clean Air Act.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

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TERMINAL NEWS l ASIA

TERMINAL NEWS ASIA

ADNOC & Korea sign agreements to explore oil storage expansion ADNOC has signed three framework agreements with Korean energy companies to explore upstream and downstream investment opportunities.

he agreements will explore upstream exploration and production opportunities, potential downstream investments and bunkering opportunities for both crude oil and LNG. The agreements have been signed with the Korea Gas Corporation, the world’s second largest buyer of LNG, which has conducted a feasibility study on LNG bunkering at Fujairah Port, the Korean National Oil Company, which has a 30% stake in ADNOC’s Al Dhafra Petroleum Company and is seeking to increase oil storage in South Korea by 24 million barrels until 2025 and GS Energy, which has a 10% stake in AL Dhafra Petroleum and 3% stake in ADNOC Onshore. The agreements were signed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNCO Group CEO and Kim Young Doo, KOGAS CEO, Yang, Su Yeong, KNOC CEO and Huh, Yongsoo, GS Energy CEO. H.E. Dr Al Jaber says: ‘Our discussion explored domestic and

Komipo & Vitol sign LNG MoU Korea Midland Power and Vitol have signed an MoU to explore upstream, midstream and downstream project opportunities in LNG. Under an existing long-term supply and purchase agreement signed in 2015, Vitol agreed to supply Komipo with 400,000 tonnes of LNG annually for 10 years. Hyung Koo Park, president and CEO of Komipo, says: ‘Komipo looks forward to developing its relationship with Vitol, our trusted partner in the LNG business.’ Russel Hardy, CEO of Vitol Group, adds: ‘We are delighted to strengthen our partnership with Komipo, a highly well-respected company in the region, and look forward to working with them on future opportunities.’

Sinopec starts operations at Yangpu terminal berths Sinopec has started operations at four berths at its Yangpu oil products terminal. The facility in Hainan has four specialised oil product berths, including one 100,000 tonnes-class berth, two 50,000 tonnes-class berths and one 10,000 tonnes-class berths. The annual handling capacity of the berths will be 27.41 million tonnes according to Sinopec. The terminal provides product oil supply to Hong Kong as well as for its expansion in southeast Asia.

international growth opportunities across a range of areas, including oil and LNG bunkering, meeting the Republic of Korea’s growing energy demands and attracting investment to our expanding upstream exploration and development operations and our downstream and gas expansion plans. ‘As we successfully deliver our 2030 smart growth strategy, we will continue to work with partners who enable us to unlock and maximise value, contribute technology and help us secure access to the new centers of global demand.’ According to the International Energy Agency, South Korea is home to three of the 10 largest crude oil refineries in the world. As part of its efforts to become a major liquids storage and trading hub in northeastern Asia, KNCO, through joint ventures with other firms, has been building the country’s first commercial terminals for crude oil and petroleum products at Yeosu and Ulsan, which will hold a total capacity of 36.6 million barrels.

GrainCorp to sell Australian bulk liquid storage terminals GrainCorp has entered into an agreement to sell its Australian bulk liquid terminals to ANZ Terminals for $350 million. The bulk liquid terminals business in Australia was acquired by GrainCorp in 2012 as part of the acquisition of Gardner Smith. It operates eight liquid terminals sites across the country, with a combined storage capacity of 211.000 m3. The sites specialise in the storage and handling of bulk liquid fats and oils, fuels and chemicals for a range of customers, including GrainCorp Oils. As part of the transaction, GrainCorp Oils will enter into a long-term storage agreement with ANZ Terminals. Mark Palmquist, GrainCorp managing director and CEO, says: ‘Since we acquired the assets in 2012, the Australian bulk liquid terminals business mix has evolved substantially and is increasingly serving other sectors, in addition to the edible oils commodities that are more closely aligned with GrainCorp’s core business. Divesting the assets to another experienced operator, while also putting in place a long-term storage agreement, allows us ongoing and secure access to the storage needed to support our oils business, whilst releasing capital and unlocking significant value for our shareholders.’ GrainCorp has retained ownership of its New Zealand bulk liquid terminals, which are more fully integrated into its supply chain, however, it is independently reviewing options for this business as part of the ongoing portfolio review.

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INCIDENT REPORT

INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 16/3/19

21/3/19

Carson, California

Yancheng, Jiangsu province, China

Phillips 66 refinery

Chenjiagang Tianjiayi chemical plant

Crude oil leaked from a reflux line resulting in a fire which shut one of its crude units. It took firefighters three hours to extinguish the blaze after they arrived at the facility and found crude pumps burning and they ensured that the flow of oil ceased. An investigation has been launched into the cause of the fire.

An explosion at a pesticide plant killed at least 78 people and injured more than 300. The explosion, according to some local media reports, was caused by benzene and occurred in a production area of the plant. The China Earthquake Administration reported that it had detected a magnitude three earthquake in Jiangsu, suspected to be from the blast. The force of the blast left a large crater containing toxic chemicals. Investigations into the cause of the explosion are ongoing but some experts have suggested that the force of the blast could be linked to the proximity of an incinerator and a fuel tank that held 4,000 m3 of liquefied natural gas. An investigation team from the State Council made a preliminary conclusion on the nature of the accident, blaming local officials for allowing the company to continue operations despite multiple safety violations. According to reports, executives from the plant have been taken into police custody.

17/3/19 13/3/19

Eastern Venezuela Petro San Felix Two storage tanks exploded at the Petro San Felix project – a heavy-crude upgrading project. The explosion happened following a prolonged blackout in the country. The tanks, located at a pumping station, were holding a diluent, according to local reports. No one was injured in the explosion.

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Deer Park, Texas, US Intercontinental Terminals Company A massive fire ignited and engulfed 11 storage tanks at Intercontinental Terminals Company’s Deer Park storage facility. The blaze took more than three days to extinguish and engulfed storage tanks containing a variety of hydrocarbons including naphtha and xylene. Part of the Houston Ship Channel were closed after chemicals from the blaze seeped into the channel. Rubber barriers were deployed to contain the spill. The US Chemical Safety Board has started an investigation into the blaze as well as the Labour Department’s Occupational Safety and Health Administration. Texas Attorney General Ken Paxton has also filed a lawsuit for air pollution in violation of the Texas Clean Air Act.

TANK TERMINAL UPDATE

TANK TERMINAL UPDATE MIDDLE EAST Earth Wealth Energy Location:

Elengy Terminal Pakistan Fujairah, UAE

Location:

Port Qasim, Pakistan LNG

Products:

Fuel oil

Products:

Capacity:

360,000 m3

Completion:

Second quarter 2020

Construction/expansion/ Vopak has acquired a 29% share and 44% acquisition: share respectively in the facility, which is the first LNG import facility in Pakistan

Construction/expansion/ The company plans to build 12 to 15 acquisition: storage tanks and a facility to treat up to 12,000 barrels per day of fuel oil to reduce the sulphur content Comment:

The facility is in response to the IMO 2020 sulphur fuel cap

GPS, Innova, Chemie Tech Location:

Port of Hamriyah, UAE

Products: Hydrocarbons Completion:

January 2020

Comment:

It comprises an LNG jetty includes a 7.5km high pressure gas line and is connected to the grid of Engro Elenergy Terminal’s sole customer Sui Southern Gas Company

ENOC Location:

Dubai, UAE

Products:

Jet fuel

Capacity:

2,000 m3/per hour

Completion:

First quarter 2020

Construction/expansion/ The greenfield storage terminals will acquisition: primarily serve Innova Refining and it will store products for this refinery

Construction/expansion/ The 16.2km pipeline will link ENOC’s acquisition: storage terminals in Jebel Ali to Al Maktoum International Airport and will carry 2,000 m3 of jet fuel per hour to the airport

Comment:

It will also serve a second customer that also operates a processing unit in Hamriyah and trades products

Brooge Petroleum and Gas Investment Company Location:

Fujairah, UAE

Products:

Crude oil, black products

Capacity:

601,600 m3

Completion:

Operations are expected to start by March 2020

Construction/expansion/ The second phase of the company’s acquisition: terminal will bring total storage capacity at the facility to 1.2 million m3 Comment:

In addition, a new pump manifold with high flow rate pumps and additional jetty lines are also being built

Iran Petroleum Engineering and Development Company

The project will strengthen the supply of jet fuel to Al Maktoum International Airport and meet the needs of airlines connecting the city to the world

ADNOC Location:

Fujairah, UAE

Products:

Crude oil

Capacity:

42 million barrels

Completion: 2022 Construction/expansion/ This will be the world’s largest underground acquisition: crude oil storage facility and will comprise the construction of three underground caverns, each with a capacity of 14 million barrels Investment:

AED 4.4 billion ($1.21 billion)

Comment:

Once complete the facility will be able to store three different types of crude oil

Location: Iran

Roseneft, Ministry of Energy & Water of the Lebanon Republic-Lebanon Oil Installations

Products:

Light and heavy crude oil

Location:

Tripoli, Lebanon

Capacity:

10 million barrels

Products:

Oil products

Construction/expansion/ Part of a 5,000-acre parcel of land for the acquisition: National Iranian Oil Company to build special oil, gas, refining and petrochemical projects is being used to build the tanks Investment:

€200 million

Comment:

The tanks will store the crude pumped from the Gorejh-Jask crude oil pipeline

Construction/expansion/ Roseneft will take on operational acquisition: management of the terminal for 20 years and it will also consider the rehabilitation and expansion of the facility Comment:

Roseneft says the agreement strengthens its presence in the region & will improve the efficiency of its existing integrated supply chain

This list is based on information made available to Tank Storage Magazine at the time of printing. If you would like to update the list with any additional terminal information for future issues, please email: jasmin@tankstoragemag.com.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TANK TERMINAL UPDATE

2019 API STORAGE TANK CONFERENCE AND EXPO October 14‒17 ● Denver, CO Westin Denver Downtown The 2019 API Storage Tank Conference and Expo will give attendees an opportunity to learn about new and existing industry codes and standards, and to hear about emerging trends from industry experts. This two-day conference offers over 50 sessions addressing the needs of individuals involved in production systems, pipelines, terminals, refining and chemical manufacturing, and storage facilities. Each day focuses on presentations relevant to upstream, midstream, and downstream. Co-Located with the API Safe Tank Entry Workshop

Register at www.API.org/storagetank Copyright 2019– American Petroleum Institute, all rights reserved. API, and the API logo are trademarks or registered trademarks of API in the United States and/or other countries. API Globa Marketing & Creative: 2019-017 | 02.19

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

EVENTS l TANK STORAGE AWARDS

nternational storage professionals gathered to celebrate industry excellence for the third Global Tank Storage Awards. Building on the success of previous events, the 2019 awards ceremony and gala dinner delivered yet another memorable night for the industry with a range of entertainment within the colourful Floating Pavilion in Rotterdam. The 2019 event was attended by professionals from Malaysia, Saudi Arabia, Dubai, the US and Europe for a lavish three

course meal. Guests were entertained by a magician, caricaturist and live band Sunday Serenade as well as a contortionist and a mirror ball act. The 11 awards categories covered technological innovations, environmental commitment, safety, terminals and ports as well as individual awards. Following the awards ceremony, guests enjoyed the casino tables while enjoying music from the live band. Margaret Dunn, event manager, says:

‘The third edition of the awards did not disappoint, and it was great to recognise and celebrate excellence with the industry. ‘The quality of award nominations received this year was excellent, and I want to congratulate both the winners, and everyone shortlisted for an award. ‘We continue to receive very positive feedback about the importance of such an event and we are excited to continue working with the industry on the 2020 event.’

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

EVENTS l TANK STORAGE AWARDS

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

EVENTS l TANK STORAGE AWARDS

The quality of award nominations received this year was excellent, and I want to congratulate the winners & everyone shortlisted Margaret Dunn, event manager

APRIL/MAY APRIL/MAY 2019 2019 VOLUME VOLUME 15 15 ISSUE ISSUE NO.2 NO.2

EVENTS l TANK STORAGE AWARDS

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

EVENTS l TANK STORAGE AWARDS

WINNERS 2019 Safety Excellence in Bulk Liquid Storage Award WINNER: Shell Haven, UK

Most Efficient Storage Terminal Award – sponsored by StocExpo Europe WINNER: Euro Tank Terminal, Rotterdam

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Excellence in Environmental Protection Technology Award WINNER: Floating roof monitoring and 2 in 1 overfill prevention system, Emerson

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Excellence in Terminal Optimisation Award WINNER: Brooge Petroleum and Gas Investment Company

Best Terminal Supplier Award - sponsored by Tank Storage Asia WINNER: EEMUA

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

EVENTS l STOCEXPO EUROPE REVIEW

THE TERMINAL OF TOMORROW

his year’s StocExpo Europe took place against more challenging conditions for the storage sector, highlighting the importance of operators to adapt as the market enters a new energy era. 2018 saw the most volatile market for the last four years as sanctions against Iran, bleak Chinese demand and other international events took their toll on markets. As 2019 progresses, everyone in the industry will be keeping a close eye on global economic, political and trade developments and the possible implications they could have. However, there are areas of optimism in the storage market, particularly when it comes to the refined products and petrochemicals market and operators should consider investing more in flexible assets to capitalise on these opportunities. ADAPTABLE ASSETS Adaptable and flexible supply chain logistics will be key for the future of the tank terminal industry. The first day of the conference examined the key market trends affecting the sector as well as sharing expert insight on the current and future developments facing the industry. Stephen Harrison, principal at Nexant, Energy and Chemicals told delegates that globally, the growth of refined products and petrochemicals will remain strongest in the developing regions of the world where population growth and greater wealth results in net demand doubling to 2030. North America and Asia in particular remain the two largest consumers up until 2030. He said that tank storage capacity will need to adapt to new supply chain structures as a result of new legislation, shifting trade flows as well as emerging forms of energy. For example, Asia and the Middle East will account for three quarters of new capacity additions globally up to 2030. Looking at the market in Europe, Harrison said that there is a likelihood of refinery closures in southern Europe and that the requirement for storage in these regions is expected to grow. Additionally, the changing product specifications will also increase demand for blending requirements in storage facilities. ‘European tank and terminal operators need to be aware of the

long-term changes in demand to the global trade in gasoline. Western Europe refiners will need to improve their competitive position. ‘Flexibility will be key to managing the next five to ten years,’ he said. He said that uncertainty in the refined product storage market is expected to continue through 2019 but that in Western Europe in particular, merger and acquisition activity is strong. THE SECOND REVOLUTION The next five to ten years will be fascinating for the oil industry according to Jean-Baptiste Renard, CEO, 2PR Consulting. Looking at what is in store for oil majors and what the second revolution will be Renard said that over the last five years, the storage and energy industry has gone through a revolution, namely the shale oil revolution. The growth of shale oil production, which drove down the barrel price of oil, coupled with continuing technological advances has seen prices drop from $110 per barrel in 2013 to around $60 per barrel today. ‘There is a second revolution coming,’ he said. ‘The decarbonisation revolution. More than half of the new electrical capacity is wind and solar. The world is going towards low carbon.’ He said that it is not a case of if it will happen but when and questioned what this means for oil majors. He projected that there will be peak demand after which time it will then go down. ‘This will kill their business model, so what can they do? They can keep focusing on the right barrels and getting the ones that are not going to be stranded. It is not a matter of being profitable, it is a matter of survival. If you do nothing then it will be extinction,’ he added. He added that the storage industry is subject to the same challenges and that having the right asset with the right product and flexibility for blending will make a big difference. Looking in particular at the storage sector in Germany, Frank Schaper, director of the German Tank Storage Association said that the storage market is particularly unique because its primary focus is the distribution of petroleum products. 70% of independent tank storage capacity is located inland, with 30% located on the coast. ‘Tank storage logistics is a complementary function to the core trading business. At the moment everything is fine with the industry

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

EVENTS l STOCEXPO EUROPE REVIEW

but in the future, there will be challenges such as limited product diversification, ageing infrastructure, German regulatory framework and the energy transition. ‘But when we critically review the challenges, we can find opportunities, such as increasing jet fuel consumption, IMO 2020, which could result in new niches for storage, as well as the growth of LNG as an energy carrier.’ In the afternoon Jon Stenning, associate director at Cambridge Econometrics, examined how the low carbon transition could impact the oil and petrochemical market, particularly the implications of changing demand for transport fuels. The European Commission’s long-term strategy sets out the required steps to realise a net-zero greenhouse gas economy by 2050 and this could result in a substantial drop in oil demand to 2050 compared to the business as usual model. Stenning said: ‘The deployment of low carbon technologies is going to accelerate in the near future. This has major implications for future oil demand and prices and will present a clear challenge to the oil and related industries.’ THE DAY AFTER TOMORROW Every aspect of society has been affected by the digital revolution and businesses need to adapt to this new world in order to survive and win new customers. Steven van Bellenghem, an expert in customer focus in a digital world, delivered his insights on how to win customers in a world of AI, robotics and automation. He explained that we are at the beginning of a new S curve – the AI revolution. ‘It has the potential to change society and the way we work. At the moment people are in between fear and excitement about it.’

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

According to van Bellenghem, the easy days of digital are over and we are now in store for more complex days as customer assumptions continue to grow. ‘The bar of customer expectation has risen – people now expect more, faster than before and cheaper than before.’ Looking to the next business step change, van Bellenghem says that we are on the cusp of a flip from a mobile mindset to an AI mindset, however he warned that companies should not purely focus on technology but focus on bringing value to customers. ‘It should be about customers,’ he said. ‘The key question is how can we create value in the new world of digital. Time is your customers’ most valuable resource. You need to first start with the customer experience and then work backwards. You need to invest in your day after tomorrow.’ Continuing the ‘Terminal of Tomorrow’ theme Matthew Hudson, terminal manager at Shell Haven UK spoke about how to deploy new technologies. ‘Projects work better when they are run by the front line,’ he explained. ‘You should encourage your team to identify bottlenecks and challenges and make a good business case for innovative solutions.’ Using this method, operators are more likely to accept change, than if they are simply told to use new equipment. Hudson explained how he took one of his frontline operators off his day job for six months in order to focus on deploying new technologies. When it comes to proof of concept, Hudson explained it’s important for this process to be quick, inexpensive and using a realistic scenario. As an example, Shell did a proof of concept on a robotics technology in three months. Hudson’s motto is: Try quick, fail fast and win big. ‘A failure is equally as valuable as a successful trial,’ he explained. Hudson also added how important it was share successes and failures with the rest of the company, which he does using the sharing site Yammer. Ronald Backers, business intelligence at the Port of Rotterdam also spoke about the rise of digitalisation. Although the port has world class infrastructure, Backers recognises that this is no longer enough – and digitalisation has a big role to play in increasing efficiencies and cutting costs. The port is working on many initiatives – it is currently trying to build a digital twin. The port has also just created an app for bunker deliveries. Since the introduction, customers have been able to decrease delays from 19% to zero. In addition to the conference, technical presentations were hosted on the show floor in the Innovation Theatre by EEMUA, iTanks as well as VDMA. StocExpo Europe will return for its 2020 edition at the Ahoy Rotterdam on March 10 – 12 2020. For more information visit www.stocexpo.com.

EVENTS l IP WEEK PARTY

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EVENTS l IP WEEK PARTY

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

PROFILE l GP GLOBAL

Leveraging storage market opportunities As the storage market shows signs of improvement, GP Global explains how it plans to further strengthen its storage terminal business by leveraging emerging market opportunities

espite weak market sentiment in the storage market the future is starting to look brighter with notable signs of improvement emerging. Recognising the opportunities in the market, GP Global is leveraging these favourable conditions by consolidating and strengthening its storage terminal business. Strategically situated in the emerging oil storage and trading hubs globally, the company has more than 1 million m3 of capacity spread across three terminals in the UAE and India. Maintaining and enhancing its market position requires continued investment in monitoring trade flows and product landing points to anticipate future storage requirements as well as evaluating all opportunities to strengthen its offering to customers. One area of opportunity the company is

The company is looking to leverage more business related to the IMO 2020 regulation

seeking to leverage more business is the IMO 2020 regulation, by strengthening its delivery capacity as well as enhancing quality upgrades in storage to meet the latest product specification. In an interview with Tank Storage Magazine Prabakaran Muthukrishnan, global head – terminals, logistics & maintenance at GP Global, explains the importance of identifying new, value-added opportunities even during challenging market periods. ‘Though market sentiment is currently weak, there are notable signs of improvement and we aim to leverage opportunities as they present themselves by expanding our business in a phased and timely manner, commensurate with market demand. ‘We have seen demand for storage increasing towards the end of 2018 and we see strong opportunity for growth – and that

is why we are gearing up especially to meet the IMO 2020 regulation. Our team also consistently monitors trade flows in order to respond appropriately. ‘In fact, among our key bunkering activities, we have plans to strengthen our delivery capacity. We have also restarted our trucking business to cover fuel oil and marine gas oil requirements at UAE ports. ‘We believe that during these challenging times for the industry overall, we must take the initiative and continue to identify new opportunities that will bring value to our stakeholders. We are ensuring that we are ready to address any potential industry challenges post-2020.’ MARKET OPPORTUNITY Each of the company’s three terminals are situated in emerging storage and trading hubs. Its facility in the west coast of India, in Pipavav, supports the import of large quantities of bitumen, base oil, chemicals, petrochemicals and vegetable oil. The 250,000 m3 facility can also accommodate ethanol and molasses. Muthukrishnan says the company is looking

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

PROFILE l GP GLOBAL

Despite weak market sentiment demand for storage is increasing and the company sees strong opportunity for growth

to cater to new product lines with future investments planned in the terminal. ‘We have seen consistent growth in recent years specifically from bitumen, base oil, molasses and ethanol, among others and there is significant demand for storage of cargo such as base oil, bitumen, vegetable oil, chemicals and petrochemicals. At Pipavav, we have a 49% market share, making us one of the more dominant players.’ Its two flagship terminals in the UAE – one in Fujairah and the other in Hamriyah – boast 750,000 m3 of storage for all types of petroleum and petrochemical products. ‘Our presence in Fujairah is indeed a natural fit to our business, as it is the world’s second largest bunkering hub offering tremendous opportunity for growth,’ Muthukrishnan explains. ‘We are gearing up to meet the IMO’s global 0.5% fuel sulphur content cap regulation to be enforced from 2020. Hamriyah too serves as a strong complement to our storage terminal business, and together, we are equipped to meet the need of our customers from across the region. ‘Through these two flagship terminals

we have established our credentials in the business. We have seen demand for storage increasing towards the end of 2018 but with abundant storage available, the market is extremely competitive with tank hire rates dropping. We constantly monitor trade flows and other geo-political trends to ensure that we continue to expand our business.’ GROWTH POTENTIAL In addition to investing in further improvements and expanding at its existing facilities, the company is also considering launching facilities in other regions such as Africa, Malaysia, and Sri Lanka however it is currently focused on consolidating its storage business. ‘We continue to focus on identifying opportunities in Africa. We are enhancing our focus on strategic areas of our businesses to grow and have begun strengthening our support infrastructure as well as evaluating other initiatives.’ However, the company’s ambition to expand into new global territories and become a leading storage and oil trading conglomerate is driving its ambitious growth potential.

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We believe that during these challenging times for the industry, we must take the initiative and continue to identify new opportunities

Muthukrishnan adds: ‘Our vision is to become a global energy conglomerate that catalyses growth by expanding into new markets, through the expansion of our product portfolio while always supporting our customers. We focus on creating unique business modes across global territories by capitalising our core competencies in the energy sector and evolving with dynamism either organically or inorganically.’

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MARKET ANALYSIS l IRAN SANCTIONS

IRANIAN OIL PRODUCTION TRAJECTORY FACES KEY DEADLINE IN MAY W

ith the May 4 deadline fast approaching for Iran sanction waiver extensions, a thick layer of uncertainty continues to surround the US administration’s policy towards Tehran. One of President Donald Trump’s key campaign promises, and the crux of his administration’s Middle East priorities, has been the reversal of Obama’s careful policy of reintegrating Iran into the international system. In 2018, Trump’s administration delivered on that promise, but the messy communication around it and the last-minute decision to grant sanctions waivers to eight countries (China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece) created an atmosphere of uncertainty for oil markets that took weeks to clear. In addition, the Trump administration has always refused to disclose the volumes assigned to each importer under those waivers, leaving the markets guessing. What is known as fact is that these exemptions run out on May 4 – whether they get extended as they are, volumes are reduced or waivers are withdrawn is still a mystery, with only a few weeks to go before the deadline. As a result, another last-minute decision by Washington on waivers extensions is likely. While uncertainty is unlikely to dissipate until early May, the Trump administration faces an increasingly difficult choice between prioritising possible secondary sanctions on Venezuela’s energy sector and tightening the screws on Iran. Oil prices are the link between these two crises, which are taking a significant amount of Trump’s foreign policy bandwidth, as the White House wants to avoid being seen as responsible for a price spike. If the administration introduces secondary sanctions on Venezuela’s oil exports, the White House is likely to extend Iran sanctions waivers roughly as they currently are or, at least, to avoid a significant cut in these volumes. Early indications point to China, India and

Turkey getting a full renewal of their current exemptions, while South Korea could be asked to cut imports and Japan is under pressure to reduce its purchases to zero. Greece, Italy and Taiwan are unlikely to receive waiver extensions, as they have not used the current ones. The final decision by the US administration will probably only emerge at the very last minute, so several buyers (in particular Japan and Korea) are likely to move cautiously and suspend operations well ahead of the May 4 deadline, to avoid crossing any red lines inadvertently. The safest approach will be to suspend imports in April – cargoes bought in April would arrive after the May 4 deadline – and wait for clarity before resuming loadings, and otherwise seek alternative crudes and condensate to replace the lost Iranian volumes. This is likely to resemble the run-up to the November 2018 deadline for the reintroduction of sanctions, when refiners suspended imports from Iran in October for fear of falling foul of sanctions and started to look for alternative grades (before there was a surprise decision to issue waivers to eight countries). Even if the market expects waivers to be renewed, few buyers – with the exception of India and China,

Failure to break out of its diplomatic and economic isolation could cause Iran to recalibrate its strategy and adopt a more aggressive foreign policy

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which will continue to import even without clarity on waivers – seem willing to take any risks until final details are confirmed by the White House. Indeed, back in October/November 2018, refiners suspended imports from Iran several days ahead of the deadline, for fear of falling foul of Washington’s sanctions. The most radically cautious position was South Korea’s, as its refiners halted purchases already in July due to the situation of uncertainty surrounding the upcoming re-introduction of US sanctions on Iranian energy exports. Instead, Korean buyers turned to Australia, Qatar and naphtha to replace the lost volumes of South Pars Condensate. Likewise, Japanese buyers gradually reduced imports from around 0.15-0.20 mb/d in H1 2018 to a single cargo in October (equivalent to 50 thousand b/d), while seeking alternative barrels among the Middle East’s sour crudes. Chinese refiners were similarly wary of uncertainty, as their imports dropped to just 0.25 mb/d in October from around 0.60 mb/d in the previous months. In particular, Sinopec and CNPC did not nominate for any November loaders from Iran given the lack of clarity and firm guidance from Beijing. As a result, in the lead-up to November 2018, Chinese buyers turned Oman, Basrah Light and Basrah Heavy to replace Iran’s medium and heavy sour crude imports. India was possibly the only partial exception to this picture, as the government encouraged state-owned refiners to continue to buy – probably as a negotiating tactic vis-à-vis the US. Indeed, Indian buyers were sufficiently confident to nominate to lift 9 mb in November in anticipation of receiving waivers, with sanctions having only a limited impact on monthly imports from Iran during this period of adjustment. Nevertheless, in the run-up to the November deadline, Indian buyers ramped up purchases of Basrah Heavy from Iraq and Arab Medium and Arab Light from Saudi Arabia as alternatives.

MARKET ANALYSIS l IRAN SANCTIONS

THE YEAR SO FAR Back to 2019, in the past few months Iran has been able to gradually increase its exports, as countries with waivers gradually resumed purchases. In late January, South Korean refiner SK Innovation received the first cargo of 0.96 mb of South Pars Condensate (SPC) since November, with Hanwha Total preparing for the delivery of 3-5 mb of SPC from February, along with Hyundai Oilbank. Likewise, in January, Japanese refiners resumed loading Iranian crude, after addressing concerns about banking regulation and shipping insurance, with Fuji Oil and Showa Shell leading the way, followed by JXTG Nippon Oil & Energy and Cosmo Oil. South Korea and Japan’s resumption raised the number of countries that have restarted purchases of Iranian oil under US waivers to five (in addition to China, India and Turkey). Taiwan, Greece and Italy have been reluctant to restart lifting and have not made use of their exemptions before the May deadline. As a result, since February, Iranian export volumes have been on the rise, particularly as Japan and South Korea have boosted their purchases to take advantage of their waivers before the May deadline and make up for lost time as neither country lifted much in December 2018 and January. More specifically, arrivals of Iranian crude and condensate jumped to 1.40 mb/d in February, up m/m by 0.45 mb/d. As mentioned, Japan and South Korea accounted for most of this increase, while China made a more limited contribution to the overall increase. This upward trend for Iranian exports went on in March, as these countries boosted their purchases further. Even with this spike, over the first four months of the waivers (November-February), arrivals averaged 1.06 mb/d (excluding volumes going into bonded storage in China in November and December 2018). Some of the increase in arrivals is also down to vessels loaded in Q4 18 finally finding buyers, and loadings have remained around 1.3-1.4 mb/d over Q1 19, meaning the spike in arrivals will only be temporary. In output terms, this means that Iran is likely to produce around 2.5 mb/d of crude on average in 2019, down from 3.5 mb/d in 2018. However, other scenarios cannot be ruled out. For instance, should the US take a more hawkish stance from Q2 19 and decide to squeeze exports to Asia sharply, Iran’s output could fall below 2.0 mb/d in H2 19 and cut average output to around 2.1 mb/d for the year. On the other hand, if waivers are extended at the current level and importers make full use of them, Iran’s production could rise to 2.6-2.7 mb/d in 2019. The roughly 0.5-0.7 mb/d swing in supply between these various scenarios would significantly influence OPEC production decisions and global inventory levels. Indeed, OPEC+’s decision to extend the current production deal to the second half of the year will depend largely on the evolution of the Venezuelan crisis and the decision on Iran

sanction waivers in the coming weeks. If both countries’ exports were to go down to zero and the market to overtighten as a result, then an extension of the OPEC+ deal would become much harder. Indeed, the Joint Ministerial Monitoring Committee (JMMC) has recently recommended that OPEC+ cancel the April extraordinary ministerial meeting given that April would be too soon to make commitments on production for H2 19. Delaying a decision to June gives OPEC+ more data points to see how inventories evolve through H1 19 and, most importantly, it provides flexibility to tweak policy and respond to any overtightening of the market given the sanctions uncertainty on both Iran and Venezuela. WHAT DOES THE FUTURE HOLD? In this context, the future of Iranian production and exports is likely to remain in the hands of the US administration, while Iran and the other global powers are unlikely to be able to weigh on this dynamic. So far, Tehran has kept a relatively low profile as Iranian officials try to use the waivers to reduce pressure on Iran’s struggling economy, but this could change if the US tries to force further cuts to exports and production. This self-restraint is likely tactical as Iran aims to placate its restive population, win over the international community and undermine the US attempt to re-isolate the country – but from Tehran’s perspective, this is only an early stage in a cyclic struggle against Washington, which was broken only barely by Obama’s reintegration policy. Failure to break out of its diplomatic and economic isolation could cause Iran to recalibrate its strategy and adopt a more aggressive foreign policy. Increased pressure from the US could accelerate this process and push Iran to escalate its regional activities through its proxies in Iraq, Lebanon and Yemen, as well as leverage its cyberwarfare capabilities. This would allow Tehran to maximise damage

to its enemies despite limited financial and military resources, while proxies would offer it an element of deniability by avoiding the regime’s direct involvement in actions that would easily attract international condemnation. Oil and gas facilities in those nations would be a particularly attractive target, although the odds of success remain relatively low. In addition, Iran’s worsening political and economic situation is allowing hardliners to put more pressure on moderates within the Iranian regime, as abruptly highlighted by Foreign Minister Mohammad Zarif’s offer to resign in late February, in protest at how regime hardliners have gradually marginalised his role on key foreign policy decisions. President Hassan Rouhani promptly rejected the offer, but it underlined the increasingly tenuous position of moderates within the regime. Meanwhile, Europe unveiled INSTEX in early February, its special purpose vehicle to enable banks and companies to bypass US secondary sanctions by replacing bank transfers with credits that Iranian firms then use to buy from European suppliers. However, the aim of this vehicle is to provide humanitarian goods to Iran, with European authorities specifically referring to medical goods and food. INSTEX is therefore unlikely to have any impact on Iranian oil exports. As for China, the delicate trade negotiations with the US continue to be Beijing’s top priority, with Iran relegated to the background in the current standoff. The Chinese leadership is unlikely to sacrifice the goal of solving the trade war with the US to come to Iran’s rescue. Once again, Iran’s future is a matter that will be decided at the last minute in Washington.

FOR MORE INFORMATION This article was written by Riccardo Fabiani, senior analyst, geopolitics, Energy Aspects. riccardo.fabiani@energyaspects.com

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PROFILE l BROOGE PETROLEUM AND GAS INVESTMENT COMPANY

Growing a storage concept The second phase of BPGIC’s storage terminal in Fujairah will elevate the facility to become one of the largest terminals by storage capacity in the Port of Fujairah

oasting one of the fastest flow rates in the Port of Fujairah, Brooge Petroleum and Gas Investment Company’s (BPGIC) second construction phase will result in the terminal having one of the largest storage capacities in the port. The first phase of the facility, which comprises 400,000 m3 of storage across 14 tanks for middle distillates and fuel oil, was completed in October 2017, with daily operations starting in January 2018. The second phase, currently under construction, will allow the facility to provide services for storing crude oil and involves the construction of four crude oil tanks and four crude/fuel oil storage tanks with 601,600 m3 of capacity. In addition, associated infrastructure such as a new pump manifold with high flow rate pumps and additional jetty lines will also be built. This phase of the facility will be able to perform up to nine simultaneous operations in addition to the eleven simultaneous operations in the first phase. Operations are expected to start by March 2020 and, once complete, the Fujairah terminal will be one of the largest oil terminals

in terms of storage capacity in the Port of Fujairah, with 1 million m3 of capacity. In an interview with Tank Storage Magazine, Nicolaas Paardenkooper, CEO of

BPGIC, says that the location of the terminal in the port is of growing importance to quick and efficient trade. ‘Located just outside of the Port of Fujairah

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PROFILE l BROOGE PETROLEUM AND GAS INVESTMENT COMPANY

01 Once the second phase it complete, the facility will have one of the largest storage capacities in the Port of Fujairah

02 The second expansion phase will add more than 600,000 m3 of capacity for crude oil 03 The facility boasts flow rates of up to 4,500 cm/hr 04 Currently the facility has 14 tanks for middle distillates and fuel oil

is the Strait of Hormuz, which is one of the world’s most vulnerable choke points for the transportation of oil and oil products. ‘There is an increasing preference to avoid sending vessels through the Strait of Hormuz due to the continued geopolitical uncertainty, and the higher transportation costs, as well as congestion and queuing times at ports inside the Arabian Gulf.’ Planning and design for the facility began in 2010 before the company was incorporated in 2013. The plan for the first phase of the facility was finalised in 2015, with plans for the second phase being finalised in 2017. The facility boasts flow rates of up to 4,500 cm/hr for fuel oil and up to 5,000 cm/ hr for clean products. Once the second phase is complete, flow rates for crude oil will be 16,000 cm/hr. ‘Following start up of commercial operations in the beginning of 2018, the facility has proven that its advanced design is successfully contributing to the high satisfaction ratings of its customers. ‘We were also recently awarded with the ‘Outstanding Terminal Design of the year 2019’ award by the Global Ports Forum.

We are very proud that only a year after commencing operations our facility design has been recognised by industry professionals.’ The first phase has 14 storage tanks designed to permit conversions from storing one clean petroleum product to another and from storing fuel oil to gas oil. Up to 11 simultaneous operations can be performed in phase one including tank-to-tank transfers, recirculations, blending, heating, loading and

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There is an increasing preference to avoid sending vessels through the Strait of Hormuz

discharging, allowing the company to service multiple orders during the same time period. It also has a fully segregated internal manifold, high product transfer flow rates and indirect connection to all the berths and industry partners in the Port of Fujairah. A stripping system has been installed, minimising energy costs, lowering loss ratios and permitting best-in-class stripping. ‘BPGIC Terminals are a best-in-class facility,’ explains Paardenkooper. ‘The group has designed a terminal for long term use by using high quality materials allowing for a 50-year life span. ‘The facility has several key features that enable it to provide users with high accuracy blending services with low product losses.’ Looking ahead Paardenkooper says that the company has its sights firmly set on future growth. ‘BPGIC is aimed for growth beyond phase two and our corporate team explores local and international opportunities that will include the same design and operations philosophy as our flagship location in Fujairah. ‘Interested developments are being presented and studied for feasibility.’

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MARKET ANALYSIS l CLIMATE CHANGE

THE FUTURE OF OIL DEMAND IN A DECARBONISED SOCIETY Abrial Gilbert-d’Halluin from the European Climate Foundation examines how tackling climate change in transportation could substantially shrink oil demand

s governments start implementing the Paris Agreement, they will increasingly need to cut carbon emissions from transport by curbing the combustion of petroleum fuels. They are meeting this challenge by setting policies that signal a long-term direction of travel for investment in low-carbon solutions. The European Commission’s long term decarbonisation strategy foresees for instance a fundamental shift away from petroleum towards greener energy sources. China and California have set ambitious targets for Zero-Emission Vehicles (ZEVs). Several European cities have announced impending bans on diesel cars and a number of governments have announced deadlines for phase-out. It is clear that change is coming fast. In a world where climate policies are being implemented globally, demand for oil will be significantly lower than in a business-as-usual case.

EUROPE DRIVING THE CHANGE In the auto-sector, Europe has started to drive the change. By supporting innovation to curb its dependence on imported oil it can improve its growth prospects and increase overall employment. Improving auto efficiency, deployment electrification and switching to domestic energy sources for vehicles can contribute to Europe’s key objectives of stimulating economic growth and mitigating climate change. UK-based firm Cambridge Econometrics estimates a shift from imported oil to domestically produced energy could create more than 200,000 jobs by 2030 in the European economy. In its scenario, the European car fleet changes from one that is dominated by diesel and gasoline vehicles in 2018 to one in which a quarter of new vehicle sales are ZEVs by 2030, namely Plug-in Hybrid Electric Vehicles (PHEVs), Battery Electric Vehicles BEVs) and Fuel Cell Electric Vehicles (FCEVs) and a quarter are fully hybridised. As a consequence, oil imports are reduced by around 510 mboe annually. By 2050, the reduction in oil imports compared to the reference case increases to 1,580 mboe1. Lower oil prices also benefit economies that import petroleum products, as they reduce inflationary pressure on

consumers, increasing real incomes and allowing for more expenditure on other goods and services that provide larger domestic value-added. ECONOMIES OF SCALE Driven by falling costs of batteries, electric cars are expected to reach cost-parity for first owners with conventional cars and vans on a total cost of ownership basis by the mid-2020s2. While the average four-year cost of running an electric vehicle should match that of a petrol car by 2024, lower income motorists should also benefit the most from the reduced running costs of conventional and alternatively powered cars in second hand markets. In particular niches, such as taxis and delivery vehicles, this might happen even sooner. While long considered to be a ‘hard to abate’ sector, the trucking sector shows potential to be disrupted even more rapidly. A recent European Climate Foundation study3, conducted in collaboration with Tesla, Volvo and Siemens, shows that by 2030 the

Figure 1: The employment impact per sector in Europe of the transition to lowcarbon cars (thousands). Dashed lines reflect the increased uncertainty after 2030

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MARKET ANALYSIS l CLIMATE CHANGE

In a world where climate policies are being implemented globally, demand for oil will be significantly lower than in a business-as-usual case

five-year running cost for an electrified truck could be more than 30% lower than even the most efficient diesel truck. While many hauliers operate with razor-thin margins and low access to capital, they are also alert to any opportunity to reduce running costs, and therefore change might come fast. LONG-TERM IMPACT Amid today’s oil prices, it is easy to forget the long-term fundamentals. The sharp fall in oil prices since mid-2014 has created considerable uncertainty in global energy markets. Although initial reductions in the oil price were due to low-cost US shale oil production and OPEC’s response, more recently the volatility in prices has been due to short-term market uncertainty in light of unprecedented levels of oil stocks in rich countries, slowing economic growth in China, new supplies from Iran, among other factors. This follows a period in which geopolitical factors, such as conflict in Ukraine and the rise of the Islamic State in Iraq, helped push oil prices to $100-$120 per barrel over the period 2011-2014. While short-term factors, such as geopolitics, speculation and sentiment, play a role in setting spot prices for oil, in the long-term, the most important factors are those that affect the marginal cost of development. One such factor is the imperative to tackle climate change. At present, the European Union imports 89% of its crude oil, the vast majority of which is used for transport fuel.

scenario: Around 8.5% lower in 2030; 24% lower in 2040; and 33% lower in 2050, according to the results of this analysis. Interestingly, the central findings of the study mentioned here can be seen as relatively conservative and reinforce the findings of the International Energy Agency (IEA). In its World Energy Outlook (2015), the IEA projects that if mankind constrains atmospheric greenhouse gas emissions below 450 parts per million – a level generally seen as consistent with meeting the 2˚C climate target – the global demand for oil in 2030 would be around 86 mbpd, compared to 104 mbpd in a scenario based on current policies.

Oil prices

THE FUTURE In a world where our societies meet their decarbonisation goals, the long-term viability of exploration for many oil sources are not viable. At the level of demand projected in a low-carbon world, it would not be profitable to extract oil from the Artic; from many deep-water oil reserves; as well as from in-situ tar sands for instance. Overall, the transition away from petroleum consumption is good for the economy, for consumers and the environment. But for the low-carbon transition to be successful, care will need to be taken of those who will lose their jobs in sectors and technologies that are superseded. If we are to succeed in this transition, petroleum companies should start investing now in businesses that provide the best value for society, otherwise many will be pushed out of the market before much time has gone by. REFERENCES

2015

Figure 2: Total cost of operating a heavy goods vehicle over five years of various powertrains in 2030 and 2050 compared to a 2015 ICE truck

In a world without climate policies to drive investment in low-carbon technologies, a study by Pöyry Management Consulting, the International Council on Clean Transportation and Cambridge Econometics4 finds that global demand for oil would grow from 94 million barrels per day (mbpd) in 2015 to 112 mbpd in 2030, an increase of 19%. By 2050, demand would grow by a further 35% to 151 mbpd, primarily driven by economic growth in Asia and higher demand for aviation. This would further expose the importing economy to the volatility of global crude oil prices; increases their trade deficit, and had wide-ranging geo-political ramifications. By contrast, in a world where climate policies are being implemented to drive investment in low-carbon technologies, demand for oil will be significantly lower than in a business-as-usual case: by around 11 mbpd in 2030 and by 60 mbpd in 2050. The same analysis found that vehicle efficiency standards implemented globally between 2000-2015 have already prevented the consumption of around 5 billion barrels of oil. In the main scenario, policies that further push vehicle efficiency and electric-drive technologies into the market and reduce fuel consumption by aircraft and ships could lead to an inflexion point in 2025, after which oil consumption would steadily decline. Cumulatively, these policies could cut oil demand by 260 billion barrels between 2015 and 2050. Such a reduction in demand could delay the need to invest in extracting increasingly expensive oil from non-conventional sources, and the long-term market price of oil would settle around a stable band between $83 and $87 per barrel from 2030 to 2050. In other words, the global deployment of technologies to mitigate CO2 emissions would cause oil prices to be lower than they would otherwise be in a business-as-usual

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The modelling of long-term marketFuture: fundamentals projects that 1 Harrison P, 2018 Fuelling Europe’s How the transition fromfor oil the BAU scenario, oil prices will recover to $80/barrel by around 2020. The oil market in strengthens the economy 2015 had an excess of 2 million barrels per day of supply over demand due to 2 Low-Carbon Cars in the 2020s, 2018, Element Energy for The European rapid increases in US production and OPEC’s strategic response to maintain the Consumers Organisation market share. Oil demand will continue to grow to 2020 and existing productio 3 Gilbert-d’Halluin A, Harrison P, 2018, Trucking intoto a Greener Future is projected to decline, causing prices to return $80/barrel after 2020 under t 4 Effects of low-carbon transport policies on long-term oil prices and scenarios used in this study. the European economy, 2016, Pöyry Management Consulting, ICCT,

Cambridge Reducing oilEconometrics demand by 11 mbpd in 2030 and 33 mbpd in 2040 (the difference between the TECH and BAU scenarios) could reduce oil prices by $8/barrel and $27/barrel, respectively (see Figure ES.2). This reduction would save an average FOR MORE INFORMATION $330 billionwas in crude each year between 2020 and 2030. This article writtenoilbyconsumption Abrial Gilbert-d’Halluin, senior associate transport, European Climate Foundation. abrial.gilbert@Europeanclimate.org

Figure ES.2: Oil price projections

Figure 3: Oil price projections under a business-as-usual and a low-carbon mobility scenario to 2050

This difference may be as high as $37/barrel in 2040 if the incremental reserves required in a high demand scenario are more difficult to access. When taking a more conservative assumption for non-OPEC source availability, more expensiv 49 reductio sources are required both in the TECH and the BAU scenario. The price potential in this case increases to 15% in 2030 and to 29% in 2040.

MARKET ANALYSIS l NOC PARTNERSHIPS

NOCS UNITE AMID WINDS OF CHANGE The growth of NOC-NOC alliances could help hedge against future political, financial and environmental hurdles. Petronas’ Abd Malik Jaffar explains how this model could help ensure greater energy security

magine national oil companies (NOCs) in a room; some stay quiet and isolated in the corner and others move to the center, strategically networking to gather intelligence and forge relationships. Which type will thrive in the 2020s? Amid ever-intensifying winds of change, deepening roots at home and abroad through partnerships have never been more important to energy security. This extends to alliances between the Middle East and Asia; regions that have nurtured win-win collaborations for millennia. NOC-NOC alliances will be the most dominant partnership structure in the energy industry in the 2020s, according to 48% of respondents to a GIQ Industry Survey in Singapore last year. Our own quest for new alliances continues to bear fruit; both those explored on the Arabian Peninsula and those on Malaysian soil alongside Middle Eastern partners. Petronas and Saudi Aramco have equal ownership and participation in a $16billion project called the Refinery and Petrochemical Integrated Development (RAPID) on the southern tip of the Malaysian peninsular. The project will enter commercial operations this year using oil imports from Saudi Arabia. The second cargo of 2 million barrels of crude arrived in early January for the 300,000 b/d refinery, which is linked to a

petrochemical complex capacity of 7.7 million tonnes a year. In Oman, Petronas’ subsidiary is buying a 10% stake in the sultanate’s Al Khazzan gas field. The stake in the Block 61 that the Petronas unit PC Oman Ventures plans to purchase will produce around 1.5 billion cubic feet of natural gas per day by 2020. WINDBREAKER: UNITY Some energy stakeholders question whether encouraging successful NOCs into your own territory is a good idea. Do their expertise dampen your competitive edge, and will knowledge-sharing jeopardise the sanctity of intellectual property (IP)? Not at all. Smart partners with outlooks that promote affordability, efficiency and sustainably are highly valued. There are enough political, financial and environmental pressure points impacting the energy markets as it is; siloes hurt us all. Geopolitics is the biggest wild card in 2019, with the current trade war suspension between two economic and energy titans, China and the US being the most prominent. Brexit’s unresolved situation, US President Trump’s unpredictable actions, as well as Middle Eastern dynamics are amongst major contributing factors to the stakeholder’s anxiousness

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MARKET ANALYSIS l NOC PARTNERSHIPS

These uncertainties breed a nervousness in energy finance, unsettling what had been increasingly positive financial outlooks. Three events have had a notable impact over the last six months: US President Trump’s surprise regarding sanctions on Iran, a deceleration in economic activity worldwide and China’s weakening economic performance. Global growth that was estimated at 3.7% last October for 2019 is now 3.5%, with 3.6% in 2020, according to the International Monetary Fund (IMF). The good news is that monetary tightening spurs appetite for consolidations; a trend that will likely translate into more partnerships this year. Consider the mounting pressure on NOCs to meet lower-carbon targets. More than 30,000 people attended the UN’s Conference of Parties (COP24) annual gathering on climate change in the southern city of Katowice in Poland last year. Momentum for green growth is accelerating and NOCs worldwide must keep abreast. Petronas recorded greenhouse gas (GHG) reductions of over 8 million tons of CO2 equivalent over a five-year period between 2013 and 2017 and we are working alongside the Malaysian government to define a national fit-for-purpose energy model. All responsible NOCs must take the seriousness and effectiveness of their potential partner’s ‘green ethos’ into account before signing on the dotted line. This can range from reducing CO2 emissions in enhanced oil recovery (EOR), waste water management, enhancing employees’ understanding of sustainability and so on. Misalignment on these critical issues would risk expensive backtracking. Amid this busyness, NOCs must still achieve their two fundamental goals: to be national energy champions that support energy security and to support local socio-economic growth. The stakes are too high for stateowned entities in Asia, the Middle East and beyond to fall behind. BP’s Outlook anticipates a 54% rise in the Middle East’s energy consumption up to 2040, while the Asian Development Bank expects energy demand to almost double in the Asia and Pacific region by 2030. In Malaysia alone,

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

the population will grow five-fold between 1950 and 2030 from 6.1 million to 36 million people, according to UN data. NOCs in Asia and the Middle East are in good shape amid this tough outlook, especially after becoming leaner following the collapse of oil prices in 2014. Plans to unite these two national camps make sense. Plus, a broadening global foot print increasingly coveted by both; 20% of Petronas’ 50,000 employees are based abroad, for example. DIGITAL KUDOS Think of digitalisation as a well-timed moderator that has entered the room of NOCs – some engaging, some not – to kickstart a conversation that everyone can benefit from if they pay a little attention. Digitalisation could unlock up to $2.5 trillion of industry and societal value in the global oil and gas markets in the medium-term. Benefits include reduced emissions and $170 billion in cost savings for customers, according to the World Economic Forum (WEF). Such potential is especially coveted in a world of $60s/bl oil. Unsurprisingly then, a quarter of survey respondents said NOC-Silicon Valley partnerships will be the most popular in the 2020s, second to NOC-NOC alliances. Reaching out and accepting helping hands from fellow NOCs will help hedge against the political, financial and environmental hurdles in 2019. As the African proverb goes: ‘if you want to go fast, go alone, and if you want to go far, go together.’ NOCs in Asia and the Middle East have little control over the shifting sands but working together helps them to steer towards energy security. Calling all NOCs: step forward into the middle of the room to engage, explore and commit. FOR MORE INFORMATION This article was written by Abd Malik Jaffar, regional director, Petronas Subsidiaries Middle East, Petronas

MARKET ANALYSIS l STORAGE IN THE MIDDLE EAST

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

MARKET ANALYSIS l STORAGE IN THE MIDDLE EAST

MIDDLE EASTERN OIL & GAS GROWTH ON THE HORIZON Despite global trade uncertainties fuelled by feuding trading countries & stricter emissions regulations, the outlook for growth in the Middle East remains strong. Amy McLellan reports

othing is normal anymore. Once the loss of supply from two of the world’s largest oil producers, Venezuela and Iran, would have triggered a surge in oil prices. Once a decision by OPEC to sustain production cuts of 1.2 million barrels per day in co-operation with Russia, the world’s second largest oil producer, would have added to supply-side fears and boosted that rally. But nothing is normal anymore. Oil prices may have added almost ten dollars since the start of the year, with benchmark Brent up 25% at $68 a barrel since January, but you are as likely to hear analysts bearishly debating high inventories, surging North American production and slowing global demand as you are to hear bulls forecasting a price spike. Indeed, despite all the geopolitics of sanctions and trade wars, it seems the fundamentals are little changed for the next 24 months. ‘Wood Mackenzie has adjusted our annual average price forecast for Brent by just one dollar – from $66/barrel for 2019 to $65/b per barrel,’ says Ann-Louise Hittle, vice president, macro oils at Wood Mackenzie. ‘Our forecast of $68/b for 2020 remains unchanged.’ It seems that despite White House bluster about driving Iranian exports to zero, the reality of the new sanctions regime is somewhat different. There is no doubt that the imposition of the sanctions in November have hit Iran hard, with exports down by around a million

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

barrels per day and the IMF warning of economic contraction. Iran exported 1.17 million bpd in February 2019, up from a multiyear low of 629,000 bpd in December 2018, according to Bloomberg tanker tracking, but still far short of the 2.6 million bpd shipped in April 2018 before the threat of sanctions hit. SANCTIONS: TALKING TOUGH Yet at the same time as President Trump re-imposed the sanctions in November 2018, he also granted a 180-day waiver to eight countries – China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey – allowing them to continue buying Iranian crude and ease the transition to new supply. Those waivers are set to expire in May and while the US State Department is talking tough, many analysts expect to see extensions granted. Brian Hook, the State Department’s special representative on Iran, said in remarks at the CERAWeek energy conference in March 2019, that the US intends to accelerate its plan of bringing Iranian crude exports to zero. Yet Hook also said that President Trump ‘doesn’t want to shock oil markets, he wants to ensure a stable and well-supplied oil market’ – after all, a price spike won’t play well with US voters the year before the 2020 elections.

MARKET ANALYSIS l STORAGE IN THE MIDDLE EAST

‘We expect President Trump to renew these waivers, with only cosmetic reductions in their number and/or volume,’ says analysts at Fitch Solutions. ‘While Washington maintains its hard-line rhetoric towards Tehran, its greater concern is with containing domestic fuel prices, to protect US consumers in the run-up to the 2020 elections. This limits its room for manoeuvre on Iran.’ Even so, the analysts don’t expect to see these lost barrels return to market in 2019 or 2020. But as evidenced by the steady-as-she-goes oil price, there appears to be plenty of latitude on the supply side to absorb these losses. The International Energy Agency (IEA), for example, points out that OPEC – excluding sanctions-hit Iran and Venezuela – is sitting on some 2.8 million bpd in spare capacity, two-thirds of which are in Saudi Arabia and could be quickly brought back online to cover any shortages, especially of heavy crude. NOPEC? NO THANKS This does depend, however, on OPEC playing ball. The Viennaheadquartered cartel recently cancelled its planned April meeting to extend production curbs through to June and there’s no doubt higher prices would help the Kingdom as growth rebounds and its economy recovers from recession. It’s also clear that OPEC is bridling at attempts by the US Congress to introduce so-called NOPEC legislation (No Oil Producing and Exporting Cartels Act), which would allow the US government to sue oil-producing nations for anti-trust violations by removing their sovereign immunity protections. The legislation is opposed by the American Petroleum Institute and major oil companies, including BP, the CEO of which, Bob Dudley, said such a move would have ‘enormous unpredictable, unintentional consequences’. OPEC is lobbying hard against NOPEC. Media reports suggest that the cartel, in a closed-door session, warned Wall Street banks that if NOPEC goes ahead, every member will maximise production and oil prices will crash – driving US shale oil producers out of business and leading to big losses for the banks backing the drillers. ABNORMAL TIMES PART 2: BRENT-DUBAI SWAPS It is, of course, the phenomenon of US shale production that has created such abnormal times. As the IEA recently pointed out in Oil 2019: Analysis & Forecasts to 2024, rising output from the US is not a new story but the game-changer is that in 2021 the US is set to become a net oil exporter: US seaborne oil trade is set to move into surplus with net exports rising to nearly four million bpd by 2024. These changing trade flows are being felt across the market. Analysts at Fitch Solutions, for example, highlight that the Brent-Dubai swap has dipped into negative territory in response to shifting global balances for light sweet and heavy sour crudes. This is because OPEC production cuts and US sanctions have removed a large volume of heavier sourer crude grades from the market, eroding Brent’s historic premium over Dubai Fateh. Furthermore, the new barrels coming onstream – with growth dominated by output from US shales – are typically lighter, sweeter crudes. This could signal a structurally weaker premium for light sweet crudes going forward, particularly as new refining capacity, much of it in Asia and the Middle East, is brought online with the capability to process lower quality crudes into a higher value product slate. This is a deliberate policy in the Middle East, where National Oil Companies (NOCs) are targeting a shift downstream to maximise value from their resources and diversify revenue streams. As these producers keep their own heavier crudes for refining in the home market, this will further raise competition in the heavy sour market. IMO 2020: A CLIFF EDGE FOR HSFO These longer-term trends are set to converge with what the IEA calls ‘one of the biggest shake-ups in the product markets’: the IMO 2020 regulation that will ban high sulphur fuel oil (HSFO) from the bunker pool. Shipowners have had years to plan for the switch but long lead times and high capital costs for retrofits and newbuilds means there are

still many uncertainties about readiness. It is estimated only about 4,000 large vessels will be fitted with exhaust cleaning technology known as ‘scrubbers’ by the end of 2020, with demand for HSFO expected to fall off a cliff edge, from 3.5 million bpd to 1.4 million bpd in just one year. This represents a huge shift in trade flows and, with less than 10 months to go until the IMO regulation comes into effect, there are real fears the market won’t be ready. Analysts at Argus report that stockpiling of low sulphur fuels is already underway as traders and shipping companies expect to see high-low sulphur spreads widen ahead of the IMO deadline. To date the IMO has resisted lobbying to ease the transition, instead deciding in October 2018 to tighten compliance by banning the carriage of non-compliant fuels in ships without exhaust scrubbers. Analysis by S&P Global Platts Analytics suggests the total economic cost of IMO 2020 could hit $1 trillion over a five-year period. This transfer of value could be good news for modern refiners in the Middle East – but bad news for simple refineries in Iran and Iraq that may struggle to cope with the sudden shift. The winners look set to be Saudi Arabia, Kuwait and the United Arab Emirates, where investment over the past five years has been focused on adding value, scale and positioning for an eastward shift in trade and investment. What’s more, there are opportunities for Saudi Arabia and Kuwait to use excess HSFO in their respective power sectors, aiding their transition to the post2020 world. In the last five years, Saudi Arabia and the United Arab Emirates, for example, have brought online 1.2 million barrels per day of new refining capacity geared to producing more diesel, and the six nations of the Gulf Cooperation Council are expected to add a further 1.5m bpd over the next five years. Abu Dhabi National Oil Company (ADNOC), for example, is building out the world’s largest integrated refining and petrochemicals complex in Ruwais, which is already the fourth largest single site refinery in the world. In February 2019 it awarded a Pre-FEED contract to the Wood Group for a refinery with a capacity of 600,000 bpd with full conversion capability to allow integration with petrochemicals industries in Ruwais. The contract award is another milestone as ADNOC accelerates delivery of a $45 billion downstream strategy to increase the range and volume of high-value products. By 2025, the company envisages refining capacity of 1.5 million bpd by 2025, up 65% from current capacity. FUJAIRAH: WORLD CLASS LOGISTICS AND BUNKERING Key to this transition in the region will be the bunkering port of Fujairah on the eastern coast of the UAE. The Fujairah Oil Industry Zone, which hosts the Middle East’s largest commercial storage capacity for refined oil products, with a current capacity of 10 million m3, is readying itself for the new IMO regulation, including studying the possibility of storing LNG as a bunker fuel. Fujairah’s importance in the region can’t be overstated, particularly following news in February 2019 that ADNOC plans to build the world’s largest single underground oil storage project here, with a capacity of 42 million barrels of crude oil. South Korea’s SK Engineering & Construction has won the $1.21 billion EPC contract to build the three underground storage caverns, each with a capacity of 14 million barrels and able to store three different types of crude oil. The mega-facility will strengthen the UAE’s position as a reliable supplier of crude oil as well as giving ADNOC greater flexibility to manage and optimise its delivery schedule and its growing trading operations, with work set to complete in 2022. CHEMICALS: ADDING VALUE TO EVERY BARREL The region’s downstream strategy is not confined to refining, with national oil companies also backing petrochemicals in a bid to diversify and chase margins on every barrel. In Q4 2018, Aramco and Total signed an engineering and design contract for a $9 billion petrochemical complex in Saudi Arabia. The Amiral complex at the port of Jubail will produce 2.7 million tonnes of chemicals a year and should be complete in late 2023 or early 2024. This will be the Kingdom’s first mixed-feed

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

MARKET ANALYSIS l STORAGE IN THE MIDDLE EAST

cracker, using different feedstocks, including natural gas or naphtha, to produce as much as 1.5 million tonnes a year of chemicals. The partners will also expand their existing refining joint venture, Satorp, also at Jubail, up from 440,000 to 480,000 bpd. Also in Saudi Arabia, a joint venture between specialist logistics company Suttons International and Arabian Chemical Terminals (ACT), with bulk liquid chemical terminals in Yanbu and Al Jubail, plans to build a value added logistics park to bring together warehousing, transport and brokerage to meet client specs in the most effective way. ‘Suttons Arabia applies ADR [Accord Dangereux Routier regulations] standards and it’s hard finding other third parties in this region doing so, which is why we want to offer ourselves in one VALP that we control and reassure clients of the standards,’ says Kasper Castricum, managing director of Suttons Arabia. ‘There will be a training centre too, to develop local employment and provide training in how to handle dangerous goods safely and with respect to the environment.’ The VALP will contain a tank depot and blending facilities for oils and chemicals, all with a view to optimising efficiency. ‘Even blending directly from ISO or IBC will be possible to avoid redundant bulk tanks usage and costs if streams are not that large,’ Castricum adds. ‘Our ACT outlets in both provinces and warehouses in Jeddah and Riyadh from our affiliate Chemtrade will give full domestic coverage and an opportunity to stack strategic stocks.’ Suttons Arabia operates a container freight station inside the Jubail Commercial Port, which handles imports and export containers and allows the JV to position its haulage fleet closest to the customs zoning so it can act quickly to meet customer demand, according to Castricum, who reports that there’s a lot of support from local government and the Saudi Royal commission. ‘The VALP is now projected being inside the PlasChem park next to SADARA that is created to attract producers using local yields as feedstock,’ says Castricum, who thinks there will be a strategic advantage to being inside the PlasChem park to be closer to key clients and actively participate in developing the region’s supply chain. OMAN: A SAFE PAIR OF HANDS Other countries in the region are also positioning their midstream infrastructure in order to leverage changing trade flows. Oman, for example, a country seen by many as a safe haven for foreign direct investment in the Middle East, plans to build a new strategic reserve with capacity to eventually hold 200 million barrels of crude at Ras Markaz on the Indian Ocean. Operations are expected to get underway in 2020 and it will be connected via pipeline to the refinery at Port of Duqm and to Oman’s Main Oil Pipeline. In December 2018, the Port of Duqm inked a fuel bunkering agreement with Shell Oman to establish a bunkering terminal to provide different grades of quality fuels and lubricants and other ancillary facilities. Total plans to develop an LNG bunkering service at Oman’s Port of Sohar. The French oil giant plans to use gas from its fields in the onshore Greater Barik area to build a small-scale liquefaction plant at Sohar, producing around one million tonnes per year, with the LNG used for regional bunkering. Sohar has also attracted investment from Singapore-based Trescorp, which is investing $600 million in a new 45-hectare terminal with six deepwater berths and, under phase one, will be able to receive, store and blend crude oil, fuel oil and diesel with initial storage capacity of 600,000 m3. Expansion plans for phase two include petrol blending, jet fuel, asphalt and a lube oil blending plant. Total storage capacity is expected to be 1.8 million m3. According to Hamood al Hashmi, chairman of Trescorp, the investment makes sense because ‘the forecasts for the growth of petroleum trading in the Gulf area are far greater than the available storage capacity, which is still relatively small.’ Despite a world of geopolitical tension, feuding trading powers and tighter environmental rules, it seems the outlook for growth and investment in the Middle East remains strong.

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

MARKET ANALYSIS l MIDDLE EAST PETROCHEMICALS PRODUCTION

MIDDLE EAST ‘BIG OIL’ TO BOOST GLOBAL PETROCHEMICALS FOOTPRINT

hile the US cracker wave on the back of the shale gas boom is getting much of the attention, big oil and gas players in the Middle East are lining up mega projects that could shift the landscape of global petrochemicals from 2025 and beyond. Driving this push from oil companies is the growing realisation that oil demand for transportation fuel will plateau with the electrification of vehicles and improving fuel efficiency. Thus, the future for hydrocarbons is not in gasoline and diesel, but in chemicals, where demand should continue to climb alongside GDP growth. It is clear that ‘big oil’ is no longer satisfied simply providing feedstock for the downstream chemical sector. ADNOC’S $45BN INVESTMENT PLAN Abu Dhabi National Oil Company (ADNOC) wants to ‘stretch the dollar’ from a barrel of oil to the maximum by producing chemicals, said CEO Sultan Ahmed Al Jaber. ADNOC is embarking on a $45bn investment plan with a goal to more than triple petrochemicals capacity at its Ruwais site from a 2016 base of 4.5m tonnes/year to 14.4m tonnes/year by 2025, and adding new downstream product chains in construction chemicals, oilfield chemicals, surfactants and detergents. In February 2019, its 50/50 joint venture company Borouge awarded FEED contracts for the fourth phase of its expansion in Ruwais, which will include a 1.8m tonne/year mixed feed cracker and add a total of 3.3m tonnes/year of olefins and aromatics capacity. The cracker will be the first in the country to use mixed feeds. The feedstock slate will be ethane, butane and naphtha. ‘The Middle East is running out of cheap natural gas. All new projects are mixed feed, with a typical mix of about 35% ethane, and 65% propane, butane and naphtha which is not as advantaged as ethane,’ says Hassan Ahmed, analyst at US-based investment research firm Alembic Global Advisors. While ADNOC and JV partner Borealis plan to finalise the downstream

configuration within three months of the FEED contract awards, it should include polyethylene (PE) and polypropylene (PP). ARAMCO’S COTC AND $100BN PLAN Saudi Aramco’s planned crude-oil-to-chemicals (COTC) complex with SABIC in Yanbu, Saudi Arabia is perhaps the most watched project on the planet as it could have stunning implications for the petrochemicals sector. Featuring a budget of around $30bn and a process to convert 400,000 bbl/day of crude oil to 9m tonnes of chemicals and base oils, the mega complex is expected to start operations in 2025. The initial plan was to convert 45% of each oil barrel to petrochemicals. However, Aramco aims to boost that figure significantly by advancing its proprietary process technology. Aramco believes it can convert between 60-70% of the oil barrel into petrochemicals using this technology. Petrochemicals are averaging about 10-15% of global refinery output, with wide differences between integrated complexes. ‘In recent years, refiners have increasingly raised their share of petrochemical output at the expense of traditional fuels. Some of the new refineries in China can convert up to 40%,’ according to Stefano Zehnder, vice president of consulting at ICIS. ‘In Saudi Arabia the original base concept is rapidly evolving. It’s clear Aramco is looking to scale up to commercial size its crude-to-chemicals technologies,’ adds Zehnder. ‘With the potential for further increase from the base 45% yield, this points to even higher petrochemicals and base oils capacities than the 9m tonnes/year base. The final configuration will be function of the desired balance between petrochemicals, base oil and fuel products.’ Ahmed from Alembic Global Advisors notes that crude oil-to-chemicals is all about ‘integration and trying to be more efficient both upstream and downstream’. That’s because ‘every new facility in the Middle East puts them higher on the cost curve’, a function of the mixed feedstock slate.

MIDDLE EAST MEGA PROJECTS 000 tonnes/year

Type

Products

Capacity

Location

Saudi Aramco/Total

Mixed feed cracker

Etheylene and derivatives

1,500 (ethylene)

Jubail, Saudi Arabia $5bn

2024

Ruwais, Saudi Arabia $45bn

2025

Saudi Aramco/SABIC

Crude oil-to-chemicals

ADNOC Mixed feed cracker, other

Petrochemicals, base oils

9,000 total*

Olefins, aromatics, polyolefins, 9,900 total** surfactants, speciality chemicals

Cost Start-up

Yanbu, Saudi Arabia $30bn

2025

* May be much higher, depending on crude oil conversion rate ** Planned capacity to achieve its goal of 14.4m tonnes/year of petrochemicals capacity by 2025. Includes a Borouge mixed feed cracker of 1.8m tonnes/year and a total of 3.3m tonnes/year of olefins and aromatics

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

Source ICIS

Company

MARKET ANALYSIS l MIDDLE EAST PETROCHEMICALS PRODUCTION

MIDDLE EAST COMPANY MEGA PROJECTS ABROAD 000 tonnes/year

Type

Products

SABIC/ExxonMobil

Petrochemicals

Etheylene, PE, MEG 1,800 (ethylene)

Saudi Aramco/ADNOC/ India consortium

Refinery, Petrochemicals petrochemicals

Saudi Aramco/ NORINCO/Panjin Sincen

Refinery, Olefins, aromatics petrochemicals

SABIC/Fuhai chuang Petrochemicals Olefins Petrochemical

Capacity 1,500 (ethylene), 1,300 (paraxylene) 18,000 total

Location

Cost Start-up

San Patricio County, Texas, US

2022

Raigad, India

$44bn

2025

$44bn NA

2025 NA

Liaoning, China

1,800 (ethylene) Raigad, India 600 (propylene via PDH) Zhangzhou, China

Aramco plans to invest an eye popping $100bn in petrochemicals over the next 10 years, CEO Amin Nasser said at the Gulf Petrochemicals Association (GPCA) annual meeting in Dubai in November 2018. In October 2018, Aramco and France-based Total signed a joint development agreement for the FEED of their planned joint venture petrochemicals complex in Jubail, Saudi Arabia. The $5bn project, slated for start-up in 2024, will comprise a mixedfeed (50% ethane, 50% refinery off-gases) cracker with 1.5m tonnes/year of ethylene capacity and downstream units. The petrochemical complex will be downstream of Aramco and Total’s joint venture SATORP refinery and the companies expect an additional $4bn in investments in petrochemicals and specialty chemicals capacity from third-party investors. Aramco has also just signed a share purchase agreement to buy a 70% majority stake in Saudi Arabia-based petrochemicals and polymers giant SABIC for $69.1 billion. MEGA PROJECTS WORLDWIDE Aramco and Abu Dhabi’s ADNOC are not only plowing investment dollars in their backyards but setting up mega complexes around the world. The most ambitious among these is the MoU signed in June 2018 between Aramco, ADNOC and a consortium of Indian oil companies (Indian Oil, Hindustan Petroleum, Bharat Petroleum) to build a $44bn refining and petrochemicals complex in India with 18m tonnes/year of petrochemicals capacity. Aramco and ADNOC would jointly own 50% of the project, with the Indian consortium owning the other half. The Indian government expects construction to start in 2020 in Raigad, India with completion of the project by 2025. Alembic Global Advisors’ Ahmed cautions on raising expectations from MoUs. ‘The Crown Prince of Saudi Arabia went on a tour across Asia and many MoUs were signed. But MoUs sometimes don’t materialise. Until

$10bn+ 2024

we see steel in the ground, we typically don’t take them too seriously,’ he says. China is another target for Middle East oil companies. In February 2019, Aramco signed an agreement with China’s NORINCO Group and Panjin Sincen to develop a $10bn-plus fully integrated refining and petrochemical complex in Liaoning, China with start-up expected in 2024. The partners will create a new company, Huajin Aramco Petrochemical (Aramco 35%, NORINCO 36%, Panjin Sincen 29%), as part of a project that will include a 300,000 bbl/day refinery with a 1.5m tonne/year cracker and a 1.3 tonne/year paraxylene (PX) unit. Aramco will supply up to 70% of the crude oil feedstock for the complex. SABIC MERGER TO BRING PROJECTS Aramco has inherited two additional mega projects following its merger with SABIC. SABIC and China’s Fuhaichuang Petrochemical are planning to jointly build a petrochemical complex in Fujian, China, a source from Fuhaichuang said in late February. The project to be located at Gulei in Zhangzhou would include a 1.8m tonne/year cracker, a 600,000 tonne/year propane dehydrogenation (PDH) unit and derivatives units, according to the Fuhaichuang source. An official deal has yet to be finalised. However, one SABIC mega project is already underway. On the US Gulf Coast, SABIC and ExxonMobil are building a 1.8m tonne/year ethane cracker in San Patricio County, Texas, with a monoethylene glycol (MEG) plant and two PE units downstream. Project completion is expected by the fourth quarter of 2021 and start-up in the first half of 2022. Beyond the potential merger between Aramco and SABIC, Middle East oil companies could seek to acquire Western petrochemical assets. Aramco acquired Germany-based Lanxess’ synthetic rubber business by buying out the latter’s 50% stake in their ARLANXEO joint venture in December 2018, while SABIC took a nearly 25% stake in Switzerlandbased specialty chemicals and catalysts company Clariant in September 2018. Earlier major deals included SABIC’s acquisition of US-based GE Plastics in 2007 and Abu Dhabi’s IPIC (now Mubadala) buying Canada’s NOVA Chemicals in 2009. ‘They would be still be interested but we would not expect them to go too far from their comfort zone in olefins and polyolefins, and possibly in polyurethanes. We think they would look to the US rather than Europe,’ says Ahmed from Alembic Global Advisors. It is clear Middle East oil companies have giant ambitions in petrochemicals with plans to bring on massive amounts of capacity in 2025. However, it remains to be seen what projects actually start up and in what timeframe. ‘The devil’s in the detail in terms of what gets built, delayed and cancelled. We all know the game of companies throwing down big numbers to prevent competitors from overbuilding,’ Ahmed adds. FOR MORE INFORMATION This article was written by Joseph Chang, global editor, ICIS Chemicals Business. Additional contribution by ICIS editors Nigel Davis, Nurluqman Suratman, Niall Swan and Fanny Zhang. www.icis.com

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

Source ICIS

Company

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All the latest terminal technical news from around the globe

Re-Gen Robotics launches UK’s first robotic tank cleaning company Re-Gen Robotics has launched the first and only remotely controlled no man entry robotic tank cleaning company in the British Isles.

he company, part of Re-Gen Waste, one of Europe’s most advanced materials recovery facilities, has invested £1.5 million in two purpose-built, fully compliant, ex Zone o rates machines; one designed to de-sludge, wash and clean large scale tanks and a second, lightweight and highly portable compact unit suitable for use on smaller sites and underground storage tanks and containers, including petrol forecourts, interceptors and process tanks. The automatic tank cleaning system will help eradicate industry fatalities in the British Isles, eliminating human exposure to confined spaces and significantly decreasing all risk categories. There are 25 avoidable deaths within confined spaces in the UK and Ireland each year due to hazardous works, manual tank cleaning methods, which remains common practice. Re-Gen Robotic’s unique, closed loop cleaning system is fully compliant with existing safety legislation and can reduce cleaning time by up to 45%, significantly decreasing downtime and loss of production whilst the facilities are not operational. The ex-zone rated equipment is effective, reliable and provides predictable cleaning times, meaning the tank is brought back into operation quicker and reduces the need for additional tank capacity, permitry delays and additional support teams. Fintan Duffy, managing director of Re-Gen Robotics says: ‘Traditionally, personnel entering into confined spaces to perform cleaning prior to inspections has been the only way to implement a detailed legislative inspection, de-sludge or clean for product change. There are inherent risks to entering a hazardous confined space and

although safety regulations and standards are high, occasionally accidents occur, due to the likelihood of human error or failure of safety devices. ‘Every year as many as 25 people in Ireland and the UK lose their lives working in confined spaces. Exposure to hazardous petrochemicals, heat stress and slips or falls are the main risks faced by workers who manually clean oil tanks. With Re-Gen Robotics, tanks can be automatically cleaned fast, in a predictable way, using technology that meets the highest safety standards in the industry. ‘We place a high premium on workplace safety and with the introduction of our exclusive robotic system, we aim to be the market leader in safe, reliable, sustainable industrial cleaning. ‘At Re-Gen Robotics what we have created is truly game changing conditions for the Tank Terminal Sector. The economic, environmental and safety benefits are extensive and the market is embracing our innovation.’

Crowcon launches new fixed-point gas detector with display Crowcon has developed an addressable fixed-point gas detector with local display, which offers both flammable and toxic gas detection and oxygen monitoring. Crowcon’s Louise Early explains: ‘We originally developed the Xgard Bright specifically for China four years ago and due to its success, particularly in regard to its addressable functionality, we have now released Xgard Bright internationally.’ Lowering the cost of installation, the threewire addressable implementation reduces cabling requirements. The large OLED display allows users to work with Xgard Bright during install, calibration and routine maintenance without the need to open the housing. Xgard Bright offers analogue 4-20mA and RS-485 Modbus signals as standard, along with an alarm and fault relay and

optional HART communications. It is suited to both small and large installations using point-to-point or multi-drop methodologies. Target applications include oxygen depletion in laboratories (educational, medical and research), toxic and flammable gas monitoring across the automotive, steel, chemical, food and beverage industries. Louise concludes: ‘We have already achieved significant success with Xgard Bright in China, across the waste water, gas distribution and construction industry and as a result, took the decision to extend our regional certifications, widening the suitability of this successful addressable gas detection solution.’

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL NEWS

AVT Reliability introduces new monitor sensor AVT Reliability has launched the latest in its new suite of intelligent condition-based monitoring and maintenance products – the wireless machine sentry MSF-1 tri-axial vibration and temperature sensor.

he MSF-1 constitutes another significant advancement in the field of digital CBM, offering improved visibility, safety, speed of data transfer and environmental sustainability. The sensor incorporates full tri-axial vibration measurement and automatic fault diagnosis assistance (ADA) to identify potential problems

and enable pre-emptive action. It offers continuous monitoring, which reduces the chance of fault conditions being missed. The MSF-1 can be paired to any Android tablet or smartphone, connecting to ground-breaking Machine Sentry software using standard bluetooth communications. Data can be collected from up to 50m away, allowing the safe and efficient monitoring of assets, which would be difficult to monitor using a traditional wired accelerometer, such as collection points behind guards and large or rotating assets like gearboxes on agitators. A unique combination of low energy bluetooth and classic bluetooth protocols optimise battery life and increase data transfer speed, while intelligent data compression utilities optimise the amount of data that can be stored internally. The time waveform is stored in a high definition raw format, giving maximum flexibility for post-processing. Lee McFarlane, technical director at AVT Reliability, says: ‘The MSF-1 offers unparalleled real time insight into, and analysis of, the condition of business-critical assets and plant safety. ‘It constitutes another significant step forward in the AVT Reliability drive to make condition monitoring and asset management not only faster and more efficient, but also cheaper and user friendly. ‘These factors have made Machine Sentry® the reliability tool of choice for blue chip organisations around the globe.’

Emerson introduces wireless toxic gas monitor Emerson has introduced its first fully integrated wireless gas monitor in response to the critical need for monitoring of toxic hydrogen sulphide gas in wellheads, tank farms, and other remote locations. The Rosemount 928 Wireless Gas Monitor is a fully integrated WirelessHART toxic gas monitoring solution. The Rosemount 928 significantly improves safety in areas and applications that were previously considered to be too expensive and difficult to monitor due to remote or difficult-to-access locations, challenging topology, and other issues. Workers approaching sites like wellheads and remote tank batteries for maintenance are constantly in danger of exposure to unplanned releases of toxic gas. Monitoring these sites with conventional wired gas detection systems is often cost-prohibitive or logistically impossible. As a result, operators have been forced to rely on portable gas monitoring devices which provide no early warning or personnel safety, or even worse, carry on with no gas monitoring at all. The Rosemount 928 gas monitor integrates into a WirelessHART network, eliminating wiring and dramatically reducing installation, commissioning, and maintenance costs. Once integrated into the wireless network, personnel simply check the status of the remote monitoring system to know if a maintenance trip is safe. In addition, the Rosemount 928 gas monitor includes a power module and the Rosemount 628 toxic gas sensor module that are both intrinsically safe and can be replaced in the field in minutes without the need for tools. The Rosemount 628 is a ‘smart’ sensor module, meaning that calibration information is stored within the sensor not the transmitter. This allows users to calibrate the sensor in a non-hazardous location and carry it into the field for quick exchanges with installed sensors. This further enhances personnel safety by minimising their time spent in potentially hazardous locations.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

SUMA mixers ■ 60 years of experience in tank mixing of various substrates ■ Robust and reliable equipment ■ Individual design ■ ATEX certified mixers ■ Mixing solutions available completely in stainless steel ■ Local and global support ■ Leading innovator in advancing mixing technology

OTHERS MIX - WE HAVE THE SOLUTION. SUMA Rührtechnik GmbH Martinszeller Str. 21 | 87477 Sulzberg/Germany E-Mail: info@suma.de | www.suma.de/en SUMA America Inc. (USA) | www.gosuma.com BRASUMA Ltda. (Brasil) | www.brasuma.com

TECHNICAL NEWS

New Rotork Master Station launched for valve actuator control Rotork has launched the latest generation of its innovative monitoring and control system for valve actuators and plant equipment.

uitable for use in all industries, the Rotork Master Station is capable of operating up to 240 actuators across three separate field networks allowing the optimum network to be used in different plant areas. It now supports Modbus RTU protocol with third party device integration and Pakscan Classic, Rotorkâ&#x20AC;&#x2122;s standard two-wire loop system, which has more than 170,000 existing devices installed in networks around the world. The Rotork Master Station has many features to enable the management of the assets connected to it. Whether the interest is in condition-based monitoring or predictive maintenance, it is all possible with the Rotork Master Station. A large touch screen interface and web pages share the same intuitive menu structure focused on providing quick device set up, interrogation and issue resolution Multiple host connectivity is included, and the presence of multiple databases enables the Master Station to maximise data transfer efficiency. The Master Station can be supplied with built-in redundancy support via a hot standby configuration, allowing a replica unit to assume network control in the event of an error in the primary unit. All network communications are secured with fault tolerance, allowing for plant operation to continue, even if a fault occurs. Installation is low cost and simple through the use of a single twisted

pair cable instead of expensive multicore cabling. The wired control loops can operate on long loop lengths up to 20 km without external repeaters, further reducing labour, installation and commissioning costs. The Rotork Master Station is available with either 19-inch rack or panel mounting options and all wiring is easily accessible from the front panels. All Rotork and third-party actuation products are supported while the Rotork Master Station can replace existing Pakscan IIE and P3 Master Station systems without the need for additional changes to the network or devices, allowing it to be easily integrated into installations. Rotork provides service and commissioning support from all our global offices as well as online documentation that will assist commissioning, service and maintenance teams. Rotork offer training for customers in the Rotork Master Station and Pakscan networks, both in-house and on-site.

WORLDWIDE D E L I V E RY OF ENGINEERED TANK PRODUCTS

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TECHNICAL NEWS

Fristam launches new single-flow VPS range FRISTAM Pumpen Schaumburg has successfully installed its new single-flow VPS range for tank farms.

he manufacturer of single-flow screw pumps offers innovative pump solutions for tank farms in the chemical, oil and gas industries. Since November 2017, the company based in Stadthagen, Germany, has been able to deliver various orders in the areas of diesel, fatty alcohols and oils. The use of single-flow screw pumps from the VPS range offers innovative and economically attractive solutions for pumping chemical and petrochemical products. These pumps are capable of pumping a wide range of products from volatile petrol to viscous bitumen. Due to the diversity of pumping tasks, the VPS pumps are robust, efficient, flexible and are easy to maintain; irrespective of whether they are used as transfer pumps or for loading and unloading tanks and tank trucks. To expand their tank farm capacities for fatty alcohols, one of Fristam Pumpen Schaumburg’s customers put six additional tanks with the appropriate infrastructure with DN 100 pipelines into operation. There were two alternatives when selecting the pumps: one option was to install two centrifugal pumps per pipeline, one under the tank and one for each pipeline at the loading/unloading station. The other solution relied on one VPS screw pump per pipe only, or rather per tank. This is possible because VPS pumps can be operated in reverse, enabling tank trucks to be loaded and unloaded with the same pump. The excellent suction properties and associated so-called ‘residues’ was an essential deciding factor in choosing the VPS pumps. ‘Less pumping generally means fewer potential sources of interference and, of course, less maintenance and repair work,’ the operations manager at the tank farm explains. ‘Thus, the investment costs, which would have been about the same in both solutions, only played a minor role.’ The six single-flow VPS 4-5 pumps are equipped with a 30 kW drive and have been working flawlessly for over a year. They are designed for a flow rate of 120 m3/h at a differential pressure of 4 bar and a viscosity of about 1 mPa s. ‘We haven’t had any problems so far. The decision to opt for the VPS pumps proved to be the right one. They run very quietly and smoothly, and we have even been able to shorten the loading and unloading processes by about 30%,’ the tank farm operator continues. A tank farm for diesel products modernised its loading and unloading station for tanker trucks in the winter of 2017/18. In order to make the loading and unloading process as safe, quick, and simple as possible, the customer was looking for a complete system consisting of pumps, gas separator, filter and volume counters and finally settled on a skid from Fristam Pumpen Schaumburg. The skid consists of all the required components and was delivered ready for connection and immediate start-up. Two single-flow VPS 4-5 screw pumps with a 30 kW motor pump up to 250 m3/h at a differential pressure of 4 bar and a viscosity of about 4 mPa s. The redundant design of the pumps also safeguards operation in an emergency, since the second pump can continue to pump in the event of an accident. Other installations followed for biodiesel and additive blending, among others.

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VAPOR

THE RIGHT WAY

Keep innovating or you start falling behind. Cashco innovation and engineering put you ahead of the curve with tank vapor control products that are simply best in class. Each product is designed to give you precise control over your entire tank system. Step up to Cashco innovation for complete control and compliance. Take control. Visit cashco.com. MODEL 5200 Pilot-operated valve, specifically designed to reduce blanketing gas losses on low-pressure storage tanks.

MODEL 6A00 FLAME ARRESTOR Sliding stem, globe style, bellows sealed, pneumatically actuated control valve designed for maximum corrosion resistance in pure chemical service.

MODEL 8900 Pilot-operated vent valve intended for installation on atmospheric and low-pressure storage tanks, vapor recovery systems, and process systems.

MODEL 1078 VACU-GARD Pilot-operated valve, specifically designed to reduce blanketing gas losses on low-pressure storage tanks.

MODEL 2100 Pressure/vacuum vent designed to vent the tank vapor away to atmosphere and to relieve vacuum pressure within the tank. The 3100 is a weight loaded style.

Cashco, Inc. P.O. Box 6 · Ellsworth, KS 67439-0006 Ph. (785) 472-4461 · Fax: (785) 472-3539

TECHNICAL NEWS

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL NEWS

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of responsibility that comes with that. Together with all our colleagues, we oﬀer crucial support and equipment for your performance. So that you can deliver what you promise. Want to know more about next gen connectorship? And its value for your business? We will be happy to tell you all about it! Ask J at www.jdejonge.nl.

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL FEATURE l VAPOUR RECOVERY

Swiss Fire Protection Research & Development AG

Swiss Fire Protection Research & Development AG, based in Sarnen, Switzerland, has produced the revolutionary Pressurized Instant Foam System, a Foam-Based Fire Extinguishing Technology that is on track to become the new norm of fire extinguishment in the Oil, Pharmaceutical, Chemical & Vegetable-Oil Industries. Our company is looking for either (1) a buyer/licensee or (2) a consulting firm to assist in the sale of our technology.

Our goal is to sell all patents and know-how on either a worldwide or regional basis.

Over the past 10 years, the earlier versions of the Pressurized Instant Foam SystemTM has been installed worldwide by companies including:

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TECHNICAL FEATURE l VAPOUR RECOVERY

TWO STAGE VAPOUR CONTROL SYSTEMS FOR ULTRA-LOW VOCS EMISSION BY JOHN ZINK INTERNATIONAL LUXEMBOURG

urrent environmental concern is leading to more stringent legislation on Volatile Organic Compounds (VOCs) emissions, which may cause a traditional single stage vapour control system to no longer be compliant. Limits below 50 mg/Nm3 are requested in several locations and are expected to be implemented in future legislation, along with the requirement to include methane in the total VOCs emission monitoring limits. John Zink Hamworthy Combustion has developed a two stage vapour control system that combines a Vapour Recovery Unit (VRU) with a thermal oxidation destructive unit. A techno-economic study shows a VRU based on activated carbon adsorption (VRU) coupled with a Regenerative Thermal Oxidiser (RTO) or a Catalytic Oxidiser (CatOx) as attractive solution. • The operation of a Carbon Adsorption-Absorption (ADAB) VRU is based on the use of activated carbon to remove by adsorption the hydrocarbon vapour fraction from a hydrocarbon vapour and air stream allowing the residual hydrocarbon in the air to be vented to the atmosphere. The hydrocarbon is then regenerated from the carbon utilising a pressure swing process and is absorbed into an absorbent liquid. • The RTO achieves VOCs destruction through the process of high temperature thermal oxidation, converting the VOCs to carbon dioxide and water vapour. The RTO comprises two or three canisters connected by an oxidation chamber, which is built above the canisters. Each canister contains ceramic material for heat storage. This ceramic media is heated or cooled, depending on gas flow direction.

Credit: John Zink Luxembourg

• A CatOx is a category of oxidation systems that is similar to typical thermal oxidisers, with the difference that all vapours piped to the CatOx are oxidised in the presence of a catalyst. A catalyst is a substance that is used to accelerate the rate of a chemical reaction, allowing the oxidation of the VOCs to occur in a lower temperature than typical thermal oxidisers. A single-delivery John Zink two-stage vapour control system, one of the first of its kind, was recently installed at a large chemical site in Germany and is comprised of a VRU with a CatOx unit. The VRU and CatOx system has now demonstrated to meet the stringent site emission permit of 20 mg/Nm3 VOCs including methane.

FIRST STAGE

Figure 1: Vapour recovery unit

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The VRU design is based on activated carbon Adsorption-Absorption (ADAB) technology. This technology has gained worldwide acceptance as being the best, most effective and reliable technology for the control and recovery of evaporative hydrocarbon vapours resulting from the loading and storage of volatile petroleum products, for example gasoline, distillate fuels and benzene. The ADAB process is based on the use of high performance activated

TECHNICAL FEATURE l VAPOUR RECOVERY

Figure 3: CatOx

carbon to remove by adsorption the hydrocarbon vapour fraction from a hydrocarbon vapour-air feed-stream in order to allow the residual gas (with low VOC content) to be directed to the CatOx. The adsorbed hydrocarbon vapour is subsequently removed (desorbed) from the activated carbon using rotary sliding vane dry vacuum pumps. The desorbed hydrocarbon vapour then is recovered as a liquid product by contact with a liquid absorbent in a packed column absorber. The system is designed to allow continuous vapour processing. It is automated to start and stop on demand and to eliminate the need for attended operation. The methane adsorption by activated carbon is weak, and most of the inlet methane gets out on the VRU vent.

SECOND STAGE

All vapours exhausted from the VRU are fed to the CatOx, where they are oxidised in the presence of a catalyst, the oxidation temperature on a CatOx is around 400˚C. The oxidation occurs without a flame, minimising NOx generation. The relative low operation temperature tolerates the utilisation of a standard gas-gas heat exchanger to recover the heat and to reduce the use of external heating power. The implementation of a catalyst unit allows a high destruction efficiency and the residual amount of VOC will be within the specified emission limits. The CatOx is designed to treat the off gas with its varying composition and consists basically of the following process, steps or parts: • Vent/diluted gas inlet pipe • Fan • Gas-Gas pre-heat-exchanger • Electrical heater • Reactor filled with catalyst Figure 4 illustrates a catalytic oxidiser fitted with a gas-to-gas exchanger. The heat exchanger preheats the contaminated air that is routed to a vessel containing catalyst material. The VOCs content of the air is limited to less than 25% Low Explosivity Figure 4 Limit (LEL), the VOCs content is

measured by two redundant LEL detectors, to avoid the risk of explosion. The CatOx inlet concentration of VOC is controlled by dilution with air. Air dilution is controlled by the LEL analysers, if VOCs concentration reaches unacceptable limits in any of the two LEL analyser the gas is sent to emergency stack (first stack). Any required air for CatOx start up is drawn from a safe area by the air fan. Due to the intermittent nature of the loading operations, the flow of exhaust gas will vary considerably and for this reason the CatOx is designed and suitable to operate with a high turndown ratio. The diluted vent gas is heated in the gas-gas heat exchanger by the exhaust from reactor. Downstream of heat exchanger the diluted exhaust gas is then fed to an Electric Heater which sets the optimum temperature for VOC in the reactor. The two beds reactor are filled with catalyst. The CatOx converts the hydrocarbons into CO2 and H2O. The oxidation reaction is exothermic in the catalyst bed and will heat the gas stream according to the net calorific value that is sufficient to preheat the feed to the required reaction temperature. In the event that the VOC load is excessive, a temperature-controlled by-pass is provided around the gas-gas heat exchanger to limit the temperature rise of the feed. The clean CatOx vent stream will be led to the vent stack and released to the atmosphere, as it is compliant with the site emission permit. The VRU and CatOx system is configured to minimise overall cost, the VRU is designed to release a VOCs content that runs the CatOx in autothermal regime, saving power consumption on the electrical heater, as well as reducing the requirements on vacuum pump capacity. The two staged vapour control system recovers up to 99.5% of the inlet hydrocarbons in the form of liquid valuable product, 0.5% of the inlet hydrocarbons are destroyed by oxidation and less than 0.003% of the inlet hydrocarbons are released to the atmosphere. The VRU and CatOx system has been successfully commissioned and operates to a satisfactory level to achieve the emission limits. John Zink is currently working on other projects involving the two staged vapour control system.

FOR MORE INFORMATION This article was written by Raul Tahoces, process engineer at vapour control group of John Zink Luxembourg, www.johnzinkhamworthy.com

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TECHNICAL FEATURE l XXXXXX XXXXXX

DON’T MISS

FPS EXPO 2019 The UK & Ireland’s leading liquid fuels distribution industry event. With exhibitors and visitors from across the world, the FPS EXPO is not to be missed! Organised by the Federation of Petroleum Suppliers – the voice of the industry – this year’s event offers greater opportunities than ever before: Learn about future trends Compare products and services Network with industry partners Industry led panel sessions Keep up with your competitors Stay on top of new regulations and legislation Whatever your role in the off grid energy sector, now is the time to visit our website and reserve your place.

For full details of the event, the venue and how to register, visit www.fpsshow.co.uk. APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

This is the place people have in their diary to come to every year. Peter Hughes Tip Tanker Services & Williams Tanker Services 69

TECHNICAL FEATURE l XXXXXX XXXXXX

S AV E T H E DAT E

Over 100 delegates

Expert-led conference

11 - 13 June 2019 | Tarragona, Spain

European Bulk Liquid Storage: Ensuring resilience in the supply chain

Closed

networking

opportunities

Meet and engage with senior tank terminal decision makers Limited delegate & exhibiting opportunities available First come, first served! Contact Emma Gibbins: emma@stocexpo.com | +44(0) 20 3196 4382

Organised by

Supported by

Find out more at www.fetsa.eu

Venue

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TECHNICAL FEATURE l XXXXXX XXXXXX

This exclusive conference & exhibition is the only event of its kind to be run directly by tank terminal operators, and for the second time is being jointly organised with StocExpo & Tank Storage Magazine. This year the event will be held at the world-famous Port Aventura World, providing yet another reason to attend.

Tuesday 11 June •

•

FETSA Annual General Meeting

Wednesday 12 June Conference Programme • Registration & Exhibition • Energy Transition Blanca Andrés Ordax, European Commission • Oil Logistics Resilience Jorge Lanza Perea, CEO, CLH • Vision on 2050 Alessandro Bartelloni, Policy Director, FuelsEurope • Car Manufacturers vision of energy transition Phillip Ellett, German Car Manufacturers • Association VDA • Security of supply in transition Pedro Miras Salamanca, Chairman, CORES

•

• •

Status and perspectives for Liquid Energy Sources in the Energy Transition Matthias Plötzke, Policy Advisor Fuels Policy and Climate Protection, MEW Bunkering policy and strategy Manuel Carlier, Director General Asociación de Navieros Españoles (ANAVE), Spanish Shipowners’ Association Panel Discussion: Adapting for a safe, secure and green future (mobility and energy transition) End of day – Cocktails in the exhibition room Networking dinner in the Mediterranean Area, Port Aventura Park

Thursday 13 June •

Port visit & social programme for exhibitors and full participants

TA L K TO T H E T E A M

Marc De Witte

Margaret Dunn

Emma Gibbins

John Darke

Executive Director FETSA mdw@fetsa.eu

Publisher Tank Storage Magazine margaret@tankstoragemag.com +44 (0)20 3196 4400

Exhibition Sales Executive FETSA AGM emma@stocexpo.com +44 (0)20 3196 4382

Delegate Sales Manager FETSA AGM john@stocexpo.com +44 (0)20 3196 4383

Find out more at www.fetsa.eu APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL FEATURE l LEAK DETECTION

LEAK MEASUREMENT SYSTEM ALLOWS BETTER OPERATOR DECISION-MAKING WHY TEST YOUR TANKS

ome may think that a leak in an aboveground tank would be easy to detect, however, small leaks in large tanks are in fact very difficult to detect. Leaks in the sidewall are obvious and easily detectable with a visual inspection because of heavy sidewall and floor loading; bottom leaks normally do not appear on the surface but go into the soil beneath the tank. Operators of storage tanks need and want to know if their tanks are leaking. Some of the most important reasons to leak test tanks are: • Limit economic impact due to under tank releases. Minimising leaks and their effects has the benefit of limiting a company’s losses and cleanup costs along with reducing future liabilities. • Verify that tank repairs have not left an undetected problem. Though API 653 requires tightness testing, most of the methods used after tank repair can and do miss significant tank floor problems. Some of the worst leaks are after a failure in tank repair. • Periodic leak testing can extend the period of API 653 inspections. The regulating authorities regularly accept SPCC plans with leak testing to justify longer time between tank entry type inspection. Economic examination of the cost of leak detection will always support periodic ongoing testing as the most viable solution for reducing liabilities associated with a tank management strategy.

COMPARING LEAK DETECTION METHODOLOGIES

Detection of small leaks in large, aboveground storage tanks is not only technically challenging but is of critical environmental importance. Detecting small leaks in large tanks requires very sophisticated

methodologies. There are several methods currently being used to try to detect leaking storage tanks: • Inventory measurement will detect leaks but will not see small leaks, only catastrophic leaks. It is not considered leak detection for the purposes mentioned above. • Non-quantitative methods such as chemical marker, soil vapour monitoring and acoustic emission can in certain cases suggest a leak may be present. These methods do not give quantitative results, only an indication that there may be a problem. With these methods it is always possible that a leak will be missed. • Ground water monitoring can detect relatively large leaks but has little ability to identify which systems are leaking. Determining that product is in the environment does not substitute for early detection of very small leaks. • Quantitative leak measurement is accomplished with very sensitive mass measurement. With this system, it is not possible to miss a leak that is within its threshold of detection. All detected leaks are reported with a leak rate allowing planned approaches to repair. Most importantly, quantitative testing methods can be evaluated for their accuracy.

MASS MEASUREMENT TIGHTNESS TESTING

Why mass? From the above brief analysis, it is clear that there are significant advantages to the quantitative testing systems. The fundamental reason for measuring mass is that product volume growth or shrinkage due to temperature change does not affect the results. This is because the product mass is not affected by temperature. The accuracy is affected by the sensitivity of the mass measurement device. Real world problems with mass measurement: Environmental noise (air temperature, radiant solar heating, wind and humidity) all contribute to tank shell temperature change. This can cause tank shell dimension change which will cause errors in the measurements. In order to deal with those issues, mass measurement compares the night-time periods (periods with no radiant solar heating) and without the more severe changes due to sunlight. In this way, the tank shell changes are reduced to a manageable thermal expansion problem. Any changes between night time mass measurements are compared to determine a measured leak rate. The accuracy of the detection is improved by the number of nights used in the evaluation.

Installing MTC test probe into an external floating roof tank

Can the accuracy of the leak measurement system be measured? One of the key benefits of leak measurement systems (as opposed to leak detection systems) is that the ability of the systems can be unambiguously evaluated for leak detection capability. Mass Technology Corporation has been evaluated by Ken Wilcox Associates, the leading recognised third-party evaluator and is listed by NWGLDE (National

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL FEATURE l LEAK DETECTION

Work Group on Leak Detection Evaluations) and has the most precise leak measurement services available. MTC tests both aboveground and underground storage tanks of any size and with any viscous fluid. A leak measurement test performed using Mass Technology Corporation’s mass-based system will result in the measurement of a leak-rate or a no leak determination. Knowing the measured leak rate allows a tank operator to determine if temporary solutions like adding a water bottom can be used to help schedule repairs.

CASE HISTORY

In 2017, an evaluation of potential candidates in providing leak detection services at the Red Hill Fuel Storage Facility at Joint Base Pearl HarbourHickam, Hawaii was performed. This evaluation included a worldwide search for the best available technology and a comparison of the leak detection systems’ sensitivity and performance versus vendor claims, previous third-party evaluations, and National Work Group on Leak Detection Evaluations (NWGLDE) data. Mass Technology Corporation’s tightness measurement system was chosen as one of the three best methods available worldwide. This evaluation allowed for true head to head comparative analysis of the leak detection systems results provided by each candidate. The three systems were tested against each other in January 2018. The leading independent third-party testing company induced a series of continuous leaks of alternating values unknown to the vendors. The three vendors utilised their release detection equipment simultaneously to measure the induced leaks and reported their measured test results. The independent, third-party testing company provided an evaluation report with a comparison of the induced leak rates to the measured test results. The results1 of that evaluation showed that Mass Technology Corporation provided the most accurate and reliable results, and once again proved to be the best available technology in the world.

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MTC SIM system installation

REFERENCES 1 The results report: https://www.epa.gov/sites/production/files/2018-08/ documents/red-hill-aoc-4.5-relase_detection_alternatives_report-201807-26.pdf FOR MORE INFORMATION This article was written by Clark Lockerd, vice president of research & development, Mass Technology Corporation. www.mtctesting.com

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Marina Bay Sands, Singapore 25 & 26 September 2019

The must attend event for the Asian bulk liquid storage industry Over 1,600 visitors

25 & 26 September 2019

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL FEATURE l TANK CUTTING

WATER JET CUTTING TECHNIQUE SAVED REFINERY TIME AND MONEY

UK water jet cutting company achieved a first after completing a water jet cutting service in Nigeria. Rentajet Group (RGL) undertook this challenging project using its ultra high pressure water jet cutting system to cut a collapsed floating roof tank in Focados, Nigeria. The roof was damaged due to flooding and the tank was no longer in operation, meaning the refinery’s oil storage capacity was compromised. RGL were approached by a Nigerian contractor and asked if they would be able to offer their abrasive water jet cutting service to cut up a collapsed tank roof at a refinery in the Focados Delta, Nigeria. RGL has previously been involved with similar projects over the last 15 years, however this was the first project the company had undertaken in Nigeria. The project involved cutting and removing a 72-metre diameter tank roof to allow a replacement to be installed so the tank could be returned to service. Due to the nature of the works, which involved volatile vapours and oil residue, only heat free methods of cutting were permitted. Water jetting was therefore the preferred method of works by RGL’s client. After initial discussions, a site survey was arranged and RGL sent two surveyors to Nigeria to perform a survey of the tank and the collapsed roof. The visit enabled RGL to fully understand the project and the challenges that would be faced and to begin building a business relationship with all stakeholders. A commercial and technical proposal was prepared by RGL, which included a detailed cutting and lifting plan. The tender for the work was then submitted. Once the proposal was accepted and the programme and methodologies agreed, RGL’s first challenge was to ensure all necessary equipment and consumables were shipped in compliance with Nigerian ‘temporary import’ regulations so the machinery could be shipped back to the UK after successful completion of

The collapsed floating tank roof

Scaffolding erected to allow operatives to cut access way

the works. Equipment was sent via air and sea freight. Once all the equipment had arrived and cleared customs, RGL operatives departed UK for Focados.

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Access way cut complete, and coupon removed

Once in Focados, the first task for RGL’s operatives was to ensure all equipment was deployed to within the bunded area around the tank and set up correctly ready to begin work.

TECHNICAL FEATURE l TANK CUTTING

pattern of cleaning and cutting was followed, which ensured the cutting task could be executed with minimal contact with oil and sludge. Once cleaned, each section was cut in sequence, using the same methodology across the whole of the collapsed tank roof. After these lift sections were cut and removed it left the central section, which also needed to be cut and removed via the same methods.

CUTTING OPERATION THREE

The final phase of the project involved cutting the centre section into removable pieces. The cuts were made to create four equal sections and once again the crane was in place to remove these from the tank. It took five days to cut and remove the whole of the centre section.

CONCLUSION

Floating tank roof after removing a couple of segments

CUTTING OPERATION ONE

Firstly, an opening into the side of the tank was required. This would allow the operatives to gain access to the roof, which had collapsed to the tank floor. This would ultimately enable safe removal of the cut sections. The client had previously erected a scaffold (to RGL design) and marked out the 5.75m x 4.5m opening with stepped and radiused corners. The set up for RGL involved mounting their custom-built cutting tracks onto the scaffold provided and adjusting each to the correct line and level prior to making the cuts. The ultra high pressure abrasive water jet quickly cut through the 35mm thick tank side walls to form the access opening. When the end of the cut was near, the coupon weight was taken via crane and the cut completed. Once cut, the coupon was lifted out and stored ready to be welded back in place once the tank roof refurbishments were complete. Cutting operation one, which involved cutting the access way and removing the coupon took three days to complete.

access to the tank floor. This enabled a locally based tank cleaning team to gain access to remove the remaining oil and sludge that had been trapped under the collapsed roof. A

The finished tank with the centre section completely removed

The cold cutting project took 17 weeks to complete working 11 hours per day over a six-day week. After starting the works in January, the project was completed in May, without any incidents and ahead of the scheduled deadline. By using ultra high pressure water jetting as the method of cold cutting it ensured the job was completed quickly and safely. All health and safety criteria were met and there was no risk of heat or sparks causing fire or explosion. The works enabled the tank to have the new roof installed and be returned to operation, restoring these valuable assets integrity for the client. RGL were delighted to complete the works for their client and are always looking out for new, challenging projects to work on within Africaâ&#x20AC;&#x2122;s oil and gas sector.

FOR MORE INFORMATION www.rglservices.co.uk

CUTTING OPERATION TWO

With access to the roof now possible, RGL were able to move the portable remote control cutting equipment inside the tank and onto the collapsed roof in preparation for the next cutting phase. Operatives followed the detailed cutting plan and working closely with local lift team, who were able to ensure each cut section was safely removed. RGLâ&#x20AC;&#x2122;s plan involved cutting the collapsed roof into 110 liftable sections. The total area of the roof was 4,070 square meters and was initially cut into 22 sections. The cutting plan involved cutting each section into a further five smaller liftable segments, which could be safely craned out once cut. Removing the first segment then allowed

The cutting operation in progress showing some of the removed sections and access way in the tank side sheet

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TECHNICAL FEATURE l XXXXXX XXXXXX

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL FEATURE l VAPOUR RECOVERY

INTRODUCTION THE SUBJECT OF THIS CASE STUDY IS THE THERMAL OXIDIZER SYSTEM FOR TREATMENT OF CHEMICAL VAPORS AT THE ITC RUBIS TERMINAL IN BEVEREN (BELGIUM).

ITC Rubis is a state of the art storage terminal for storage of liquefied petroleum gas (LPG) and chemical products, with each type of product having dedicated vapor treatment facilities. Here we will focus on treatment of vapors of various chemical products mixed with nitrogen. Some LPG can also be drained occasionally into this mixed vent stream.

zone 0 area. Vent gas flows towards thermal oxidizers from this vapor collection system due to the vacuum maintained by zone 0 fans at the thermal oxidizer systems. The thermal oxidizers are fed by this means, and in addition the vacuum state at the furthest sources from the oxidizers is also maintained in order to prevent cross contamination of gas phases in tanks with different products. This provides a functional safeguard against cross-contamination due to a failing vacuum.

NOVEL THERMAL OXIDISER DELIVERS OUTSTANDING ENERGY EFFICIENCY Generally speaking, the pressure increase in a storage tank either results from product discharge into the tank or from product vapors heating up due to atmospheric conditions. Venting of each tank is controlled by pressure in the tank. At set-point, an automatic pressure valve at the tank vapor side is opened and the vapors vent until the pressure drops to a defined value. It is ITC Rubis policy not to release any chemical products into the atmosphere uncontrolled, so the vent gas is directed towards vapor treatment, which can be based on recovery (for streams containing a pure substance) or combustion technology (for gaseous mixtures). There are also various chemical compounds stored at ITC Rubis, and their vapors, mixed with nitrogen and air, are vented into a common collection system forming a gaseous mixture. The whole vapor collection system is thus classified as an ATEX

It can be readily concluded from the description above that the vent gas from storage tanks will vary considerably in terms of composition and volume (more than 50 storage tanks with different products of which a certain amount will reach venting conditions at any given time due to operations or atmospheric conditions). This variation in vent gas composition and quantity of gas is illustrated in Figure 2 (the disturbance is shown on the right hand of the figure) In addition to this, some special manual operations are performed at ITC Rubis, such as nitrogen blowing of lines or draining of small quantities of LPG into the system, which results in abrupt pressure and concentration peaks in the vent gas.

Figure 1: Thermal oxidizer units at ITC Rubis, Beveren (BE)

Thermal load Volumetric flow of vent gas Header pressure

Figure 2: Illustration of the vent gas flow and composition changes

Another feature of vent gas is its discontinuous availability at tank terminals. As a consequence of this, there are periods of reduced operation. In these periods, the thermal oxidizers receive almost no CONVENTIONAL THERMAL OXIDISERS combustible content but must still secure the vapor control function so as to remain capable of receiving vent gas at any given time. This requirement presents a challenge in terms of energy efficiency.

Prior to the addition of the Dumag thermal oxidiser, ITC Rubis operated two conventional thermal oxidisers with a similar thermal capacity to the new one that has been installed. These conventional direct fired thermal oxidisers with vertical combustion chambers feature what is known as a dynamic flame arrester â&#x20AC;&#x201C; a common protection device in systems of this kind. When the flow rate of vent gas falls below a critical value there is the risk of a backflash: the flame will not be introduced into the combustion chamber but burns back towards the source of the vapours. The dynamic flame arrester is used to prevent this using additional air to ensure that the total flow rate does not fall short of the critical low set-point under any circumstances. Additional air is added in the event of a lower flow of vent gas, resulting in an appropriate velocity of the feed stream, which is above the velocity of flame propagation. This additional air flow ensures that the flame is always in the direction towards the stack and will not flash back. However, in order to maintain the combustion temperature (typically above 850Ë&#x161;C) at all times, additional auxiliary energy is needed, precisely at the times when vent gas is very low or does not contain significant organic content. This is unfavourable and causes increased operational costs of the unit (especially in discontinuous operation). Difficulties sometimes occurr in handling varying compositions (calorific value) and changing the amounts of vent

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

3 | NOVEL THERMAL OXIDIZER FOR TANK TERMINALS

TC Rubis is a state-of-the-art terminal for the storage of liquefied petroleum gas (LPG) and chemical products. The tank vapours, mixed with nitrogen and air, are vented into a common collection system forming a gaseous mixture, which is classified as an ATEX zone 0 area. The composition of those vent gases will vary considerably in terms of composition and volume (more than 50 storage tanks with different products of which a certain amount will reach venting conditions at any given time due to operations or atmospheric conditions). This variation is illustrated in Figure 2 (the disturbance is shown on the right hand of the figure). In addition to this, some special manual operations are performed, such as nitrogen blowing of lines or draining of small quantities of LPG into the system. As a consequence of periods with reduced activity at the terminal, vent gas is available discontinous.

TECHNICAL FEATURE l VAPOUR RECOVERY

ADVANCED PROCESS CONTROL FOR SMOKELESS OPERATION

The Dumag system features a forced draft air fan which is used to control the O2 at the stack and the temperature of the combustion chamber. A fast reacting system cannot rely on a single control loop only. Operation is monitored by the advanced process control that is implemented and the future operational conditions are also derived from the measurement input received. Dumag recommends implementing feed-forward-control using a continuous composition analyser upstream the system as a general rule, but this option was not required at ITC Rubis. In the case of the ITC Rubis unit, the flue gas temperature, the vent gas flow and pressure and thermal load and other further relevant process data are all used for controlling the system in addition to the flue gas oxygen content. Dumag has parametrised these control loops in a highly effective system, based on its extensive experience in other successful projects. A clear illustration of this effectiveness is how the system processes a sudden introduction of 500 Nm3/h of pure LPG via the LPG draining system. The Dumag unit maintains full functionality until it reaches its thermal limit (Figure 6).

Figure 3: Black smoke due to incomplete combustion during a test run

gas in the existing units, especially during drain operations. Cooling/ combustion air is fed via air inlet with shutters based on the principle of natural draft. The shutters are meant to control the air flow, and thereby the temperature. Due to the size and construction, however, the design could neither provide a quick response to the described changes nor accommodate to the pressure/concentration peaks in the vent gas. As a consequence, a visible flame or eventually black smoke resulting from incomplete combustion could be detected at the stack outlet. The involuntary attraction caused by such event might draw the attention of the neighborhood and authorities (see Figure 3).

CONCLUSION

Dumag applied its proprietary technology and extensive process tuning experience gained in various thermal oxidiser applications, and also made full use of its proprietary computer aided engineering tools and its know-how and expertise to provide a suitable solution for the challenges presented by ITC Rubis. Significant operational cost reduction has been realised for situations of low flow and no flow of vent gas. The most important stride forward, however, is that this has been achieved without compromising on safety or operational flexibility.

THE TECHNICAL CHALLENGE

DUMAG CSB BURNER FOR INCREASED ENERGY EFFICIENCY

Dumag installed the proprietary Dumag CSB burner (Figure 4) in the unit at ITC Rubis; this burner is capable of achieving a turn-down ratio as low as 1:30 without compromising in safety. Automatic control of the burner neck position maintains a constant pressure drop resp. gas velocity over the burner. When the amount of waste gas is lower, the burner will adjust, and the cross-sectional area of the burner becomes smaller. This keeps the velocity constant at the burner neck, offers an effective measure against flame flashback and replaces the traditionally used dynamic flame arrester based on flow addition. A significant reduction of the volume of air added (and therefore also additional auxiliary fuel) was possible as a result of this development, and the idle operation state (vent gas flow equal to zero with unit lined up) can now be realised with as little as 10 Nm3/h natural gas, which is needed for compensation of heat losses through the insulation and via the stack. A verifiable improvement has been achieved. Assuming 2,000 hours of idle time operation per year, a saving of approximately 1,000 MWh of natural gas can be realised (the difference in idle consumption can be seen in Figure 5 as horizontal trend line). This equals more than 200 tons of CO2 emission reduction per year. Taking an optimistic natural gas price of 0.02 €/kWh as a basis, the expected fuel cost reduction could be at least €20,000 per year. Dumag has included a hot-standby mode as an important additional feature for the periods when the collection system does not provide any vent gas over an extended period of time. In this mode, the unit temperature is maintained but the vent gas line is closed and a further lowering of the fuel demand is possible as a consequence.

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FOR MORE INFORMATION

CONCLUSION www.dumag.com DUMAG applied its proprietary technology and extensive process tuning experience gained in various thermal oxidizer applications, and also made full use of its proprietary computer aided engineering tools and its know-how and expertise to provide a suitable solution for the challenges presented by ITC Rubis. Significant operational cost reduction has been realized for situations of low flow and no flow of vent gas. The most important stride forward, however, is that this has been achieved without compromising on safety or operational flexibility.

THANKS TO THE ADVANCED PROCESS CONTROL, THE DUMAG SYSTEM SECURES COMPLETE COMBUSTION UNDER ALL REALISTIC CIRCUMSTANCES AND PUTS AN END TO ANY MURKY PLUME AT THE STACK OUTLET.

To summarize some prominent features of the DUMAG system installed at ITC Rubis:

Figure 4: Example of a DUMAG CSB burner device

• Vent gas consumption by means of the proprietary DUMAG CSB (constant speed burner) helping to realize a five-fold reduction of auxiliary fuel consumption in idle mode.

The natural gas consumption in idle state is shown • Auxiliary fuel consumption by means of the proprietary DUMAG MFB in comparison for all three units in Figure 5. (multifuel burners).

Conventional Thermal Oxidizer DUMAG Thermal Oxidizer

• The system uses a forced air fan for temperature and O2 control. • Parallel operation of all three units is successfully implemented. Due to its energy efficiency, the DUMAG unit is the primary unit used. When more capacity is needed, the other, less energy efficient units are put to work in addition and the DUMAG unit provides peak shaving. This optimizes energy consumption even further. • Remote support (even during performance testing) is available 24/7. • Carefully adjusted swirl at all burners performed to further reduce NOx emissions (significantly below the permissive values). • The design is adapted to accommodate a future waste heat boiler.

Figure 5: Comparison of natural gas consumption in thermal oxidizers at ITC

Figure 5: Comparison of natural consumption in thermal oxidizers at ITC Rubis during low vent gas flow rates Rubis during low gas vent gas flow rates

A verifiable improvement has been achieved. Assuming 2000 hours of idle time operation per Thermal Load of approx. 1000 MWh of natural year, a saving gasVolumetric can beflow realized (difference in idle consumpvent gas tionofcan be seen in Figure 5 as horizontal trend line). This equals more than 200 tons of CO2 emission reduction per year. Taking an optimistic natural gas price of 0.02 €/kWh as a basis, the expected fuel cost reduction could be at least 20,000 Euros per year.

Advanced process control for producing ”invisible smoke”

The DUMAG system features a forced draft air fan which is used to control the O2 at the stack and the temperature of the combustion chamber. A fast reacting system definitely cannot rely on a single control loop only. Operation is monitored by the advanced process control that is imFigure 6: Immediate system response to load changes during peak performance test (500 Nm³/h 1-butene introduced in the vent gas system) Figure 6: Immediate system response to load changesand during peak operational performance plemented the future conditions DUMAG has included a hot-standby mode as test (500 Nm³/h 1-butene in the vent gas system) are also derived from the measurement input an important additional featureintroduced for the periods received. DUMAG recommends implementing when the collection system does not provide any feed-forward-control using a continuous compovent gas over an extended period of time. In this sition analyzer upstream the system as a genemode, the unit temperature is maintained but the ral rule, but this option was not required at ITC vent gas line is closed and a further lowering of Rubis. In the case of the ITC Rubis unit, the the fuel demand is possible as a consequence. 79flue gas temperature, the vent gas flow and pressure and thermal load and other further relevant process data are all used for controlling the system in THE DUMAG BURNER MANAGEMENT

7 | NOVEL THERMAL OXIDIZER FOR TANK TERMINALS

Dumag was presented with two imperative targets that needed to be met and successfully demonstrated in use for guaranteed performance: 1. Increasing the energy efficiency in ‘idle’ mode: achieving an overall reduction in auxiliary fuel consumption at low and no vent gas flow. 2. Producing ‘invisible smoke’: increasing the ability of the installation to accommodate sudden vent gas pressure and composition changes. The company succeeded in designing, building and operating a skid mounted, modular system meeting all the exceptional targeted performance requirements.

TECHNICAL FEATURE l XXXXXX XXXXXX

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During lunch on Monday, scientist Jordy Hendrikx will ask us to rethink risk by looking at lessons learned in other hazardous settings—namely avalanche-prone areas. Bridging his decades of research on avalanche fatalities with his knowledge of risk management, Hendrikx will demonstrate how focusing on human-dimensions and decision making can help reduce fatalities and injuries in any risky setting. Hendrikx has spent the last 20 years working on snow and avalanche projects in mountains around the world, from Antarctica to the Arctic. His work has been featured by Nature, The Wall Street Journal, The New York Times and Powder Magazine.

The conference concludes with a presentation from author Walter Nusbaum. Building on themes from his books, Do You Have What It Takes? and The Sink: Radical Transformation with One Small Change, Nusbaum will examine the seven critical traits of successful leaders and teams and show how success can be accomplished by anyone willing to do the work. Nusbaum will challenge everyone to evaluate themselves, and he will discuss how they can continue to develop each of the seven critical elements of success. Walter’s academic background in strategic management, leadership and philosophy, along with his ability to see the problem and provide proven solutions, has made him a highly sought-after speaker and coach.

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APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

TECHNICAL FEATURE l FALL PREVENTION

LOWTANK: A TRANSITION TO SAFER METHODS W

hile the top loading of road tankers has served us well, the risks to operators when accessing the tanker top have become more apparent and the safety of workers is too important not to look for safer alternatives. When working on the tops of tankers there are a multitude of risk factors to consider – from round barrels, to wet surfaces, and trip hazards, it is critical to understand where pitfalls exist and how to eliminate them. It is the responsibility of every site to provide adequate fall prevention equipment for all workers because while there are some tanker-based rail systems, there is absolutely no guarantee that they will be present or even maintained to a reasonable standard. According to the Health and Safety Executive, in 2017 there were 43,000 accidents from falls from height across all industries. And more worryingly, falls from height accounted for 28% of the total of fatal workplace falls; and of that 28%, more than half were directly related to falls from ladders, scaffolding, platforms, etc. The risks are evident and the need to transition to bottom loading is crystal clear. Unfortunately, there is no such thing as a 100% risk-free environment in this industry. With all the moving parts involved, even the safest option still has risk factors that need to be taken into consideration. Here are some eye-opening stats from the HSE about workers falling from vehicles: 35% of falls are from the backs of lorries, 9% of falls were from the top of a vehicle, and 4% of falls were from tanker steps. Even where there are active safety components accidents can and do still happen. The lack of proper flooring, the presence of trip hazards, and the absence of safety rails mean there is no proper way to access even generally low-risk level access points on bottom loading tankers. UK-based IFC Inflow aims to change that. IFC Inflow developed the LowTank mobile access ladder after discussions with clients about the identified risks related to access and operations around the back of ISO tankers. Initially working with a major UK tank storage operator who, having carried out a health & safety assessment, had identified the risk of accessing ISO tank containers mounted onto trucks, where there is a requirement to work on the back of the truck chassis to load or unload the ISO tank. This is essentially a work at height operation. The risk is the same as on top of a tanker, that of the operators having no safe or easy method to access the back of the ISO tank or work safely on the back of the truck trailer once there. Many trailers do not have any form of flooring, so trip hazards are an additional risk, coupled to the manual handling of hoses and loading arms to connect to the tank valves make ISO tanker loading operations a serious potential accident hazard. The operator had looked around and found no systems on the market that catered to this very specific problem. In the end they were reduced to using crash pads around the backs of their trailers to catch operators in the event of a fall. IFC specialises in tanker fall prevention systems. The philosophy at IFC is

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

The LowTank mobile access ladder was developed to meet a specific industry need

built on preventing workers from falling, rather than catching them after accidents have already occurred. The LowTank began as an adaptation of IFC’s TopTank mobile access ladder used across Europe to protect workers on top-loading tankers. IFC developed the LowTank to meet an industry need and together with their initial client designed and manufactured this new mobile access ladder and safety cage to provide a much-needed fall prevention solution for the bottom loading and unloading of ISO tanks. Kiran Shaw, sales and operations director, says: ‘This was a great challenge for us. Our client had a real need for a system that would pro-actively protect their workers. Having developed our TopTank access ladder which does a similar job for top loading tankers, we were in a good position to help. Falls from the back of trailers and trucks is a bit of a silent killer in our industry – a fall of a few feet is enough to seriously injure staff, who often eschew safety equipment because they don’t see the

TECHNICAL FEATURE l FALL PREVENTION

job as dangerous. We’re proud of the LowTank and how it addresses a real problem.’ To create the best possible equipment, IFC engineers all their products to conform to current health and safety legislation/standards. The LowTank incorporates the benefits of easy to use access steps and a fall prevention safety cage into a simple, easily manoeuvrable solution that can be handled by a single operator. The LowTank features a fixed three-rail safety cage with a gate that prevents falls from the back or sides of trailers, with long cage sides that ensure the whole working area is covered. The stairs are extra wide to compensate for any cumbersome, specialist PPE that may be needed and are designed to be non-slip from galvanised steel. While the cage is a benefit on its own, the LowTank also features safety clips and cords to properly attach the safety cage to the tank container for added security. Large castor wheels fitted with footbrakes ensure that there is good operation, regardless of uneven ground. Aside from the safety features, the LowTank has also been designed with durability in mind; the galvanised steel steps and powder coated steel frame have been specifically designed to withstand the changeable outdoor conditions. IFC conservatively believes that by 2025, the LowTank will be actively used on every tank storage site in Europe. With the growth in the use of ISO tank containers to transport liquids globally there will be an exponential increase in the number of accidents and falls from height associated with ISO tank loading and unloading operations. The number of workers operating on the backs of ISO tank containers will increase and their safety will be paramount. FOR MORE INFORMATION IFC Inflow will be exhibiting at ChemUK 2019 in Harrogate, UK. www.ifcinflow.com.

The LowTank features a fixed three-rail safety cage with a gate that prevents falls

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CHEMUK 2019 l SPEAKER INTERVIEWS

SPEAKER INTERVIEWS INSIGHTS FROM A SELECTION OF CHEMUK 2019 INDUSTRY EXPERTS

Interviews with some of the speakers at the inaugural UK chemical industries supply chain expo & conference (ChemUK 2019) at the Yorkshire Event Centre, Harrogate, UK on May 1 & 2

The importance of safety in the chemical distribution industry A strong safety culture is at the heart of Brenntag’s chemical distribution operations. The company helps to raise the bar and set the safety standard in the distribution industry for chemicals and is continuously investing in new systems and programmes to not only take advantage of the new digital era but to strengthen safety amongst its employees.

ngo Legermann, HSE manager at Brenntag EMEA, talks to Tank Storage Magazine about how the company deals with safety challenges, its new system that delivers a step change in the management of chemical delivery as well as its innovative HSE culture improvement programme. What are the main safety challenges and concerns in chemical distribution and for Brenntag? Safety is the first of the eight guiding principles of the global Responsible Care programme that Brenntag has supported for many years - and safety is our top priority. Brenntag is the global market leader in chemical distribution. It is our job to ensure the right product gets delivered safely, to the right customer, on time – whatever the volume, wherever they are located. We look to achieve excellence in every aspect of our business, such as to supply products quickly, efficiently, safely, conveniently and in full regulatory compliance, and offer extensive support to our customers in implementing all aspects of the relevant regulatory and safety requirements. What key pieces of legislation particularly impact HSE in Brenntag and the chemical distribution industry? The chemical distribution industry acts in a highly regulated market in global, regional as well as in different local respects. Our industry is fully committed to Responsible Care and Responsible Distribution and it is one of its key business principles to fully comply with all regulatory requirements, including but not limited to those defined by Europe’s REACH Regulation, COMAH/SEVESO and ADR. Brenntag’s team of experts work to ensure compliance with regulations in all dimensions of its own business processes. By that Brenntag is enabled to tap into a broad expertise and knowledge base with regards to similar processes of its business partners. We work very closely with the regulators to ensure that our organisation operates to the very highest environmental and safety standards.

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Can you explain Brenntag’s role in the chemical supply chain? Brenntag plays a key role in the supply chain connecting manufacturers and users of chemicals. As a business, we continue to raise the bar in terms of safety, with regards to our organisational safety culture and, as a distributor, setting the standards for the safe delivery of chemicals in the industry. For instance, last year Brenntag UK & Ireland completed the implementation of the Brenntag Mobile Delivery Management System across its own fleet of more than 100 vehicles. The system delivered a step change in the management of chemical delivery through our bulk and distribution fleets. Safe transportation of chemicals is essential in responsible distribution, whilst the nature of chemical distribution traditionally dictates vast amounts of paperwork to handle specific delivery, compliance and safety instructions, especially for multiple deliver types and different products. The system ensures accurate delivery information and data integrity to validate all compliance and safety checks, including deliveries made by third parties, giving the full transparency of our delivery and collection process in real-time. Brenntag is the first chemical distributor in the UK to go live with this revolutionary delivery management system. What initiatives has Brenntag implemented to enhance its safety performance? Safety is at the core of everything we do at Brenntag. We recognise that as a distributor we sit at the very heart of the supply chain and therefore ensure that we get it right and do it safely every time. This is integral to the success of our business and that of our business partners. Our safety initiatives are all developed to encourage our employees to ensure safety is in our cultural DNA. In 2015, Brenntag launched globally the BEST (Brenntag Enhanced Safety Thinking) programme. This model helps everyone at Brenntag understand the behaviours they should and should not display to play their part in strengthening our HSE culture. Since its implementation, we have seen great improvements on our journey to create a better safety culture with the target to have caring co-workers who take care of each other. It’s about people, and this programme is getting to their hearts and minds, as it is our employees’ direct involvement, ideas, initiatives and understanding of the importance of safety that enable us to continuously raise the bar on safety performance. Are there any future developments planned at Brenntag in relation to its chemical distribution offering? We all know that our private lives are much more influenced by digital innovations, but of course business life is also affected. Brenntag is fully embracing this next stage of the company’s development and the opportunities this new era brings. As a global market leader, Brenntag is in a very good position to lead this change in chemical distribution industry

CHEMUK 2019 l SPEAKER INTERVIEWS

and shape it. We need to keep doing what works, modify what can be done better, and invent new ways to create true value for our partners. Specifically, to further develop our safety-first culture, this includes new tools to improve safer ways of working at our depots and at customer sites to ensure wide range of services and compliance to essential safety rules.

Legermann will be talking more about the importance of safety in the chemical distribution industry on the afternoon of the second day of the ChemUK 2019 conference.

A cleaner and safer storage future Continued maintenance and training in the management of assets in critical safety service is essential to ensuring storage facilities operate as safely and efficiently as possible.

n this highly legislated industry, the consequences of poor maintenance and lack of training can lead to catastrophic consequences, and there have been several examples of this internationally through the years. However, the industry still remains unregulated with regards to emissions of volatile organic compounds (VOCs) and some equipment still does not meet industry standards. Many storage operators are still unaware of the losses they are incurring or the impact their emissions are having on the environment. ‘All of this is reversible at a very low cost,’ explains Ewart Cox, managing director of tank storage and process safety equipment supplier Assentech. ‘The benefits are many, including lower environmental emissions, healthier employees, higher quality feedstocks, fewer HSE interventions and hopefully no unplanned loss of containment or incidents.’ Assentech’s range of preventative maintenance programmes for tank venting equipment help to mitigate the environmental impact of storage operations as well as reduce HSE interventions and incidents. Cox says that the programmes on offer reflect international standards API2000 and ISO EN28300 for functional testing of new equipment. In an interview with Tank Storage Magazine he says: ‘We are surprised that many buyers in the industry have not fully adopted the minimum requirements in the manufacture and maintenance of storage tank vents, which have existed in the standards since 2008. ‘Our particular sector of the industry is very unregulated at present and needs urgent attention. The recent publication of EEMUA 231 co-branded with SAFed IMG1 makes a great start in raising awareness of the need for the management of assets in critical safety service but operating below 0.5 barg.’ The company’s tank venting solutions demonstrate how the vent performs against current standards and provides a gap analysis to inform the operator how far off the standard their equipment is if it does not pass. The programme also includes conducting a health check on tank vent settings, which can often highlight fundamental misalignment between tank vent settings and tank MAWP. Cox says that the company’s approach is that no venting device should function less efficiently than when new, despite its age. ‘We pre-test all breather vents prior to servicing to benchmark possible quality issues. In the safety relief industry, failure to perform is a reportable event. This has not been the case with low pressure venture, but it could be in the future with the increased awareness of the consequences of air pollution. RESOLVING HIDDEN ISSUES ‘Many tank farm operators will have stories of collapsed tank events caused usually by misunderstanding or poor maintenance,’ explains Cox. ‘Our work has revealed many hidden issues. First of all, lower tank venting emissions will limit exposure of personnel and neighbours to harmful vapours. There is increasing awareness and some evidence-based

results of the impact exposure to VOCs has on our bodies. ‘We have also cut expensive nitrogen usage by tens of thousands of pounds in the space of a few months and prevented the collapse of almost an entire tank farm following a request by the authorities to cut tank vent emissions in a building.’ Following the growing interest and support in its venting equipment solutions, the company plans to publish a buyer’s guide to compliant tank venting equipment. Cox says: ‘There is still a surprising amount of non-compliant equipment on the market that is CE marked. We have developed a mobile test bench that can be used to test and calibrate tank vents in accordance with current standards and also demonstrate a gap analysis to support decision making for the replacement of non-compliant equipment. This device is fully automated and can be used by end-users for validated self-certification. ‘We see it as our duty to advise and inform the industry towards a cleaner and safer future.’

Cox will be talking more about the control of VOC emissions from storage terminals on the second day of the ChemUK 2019 conference.

Proving process safety at chemical plants Operating processes at chemical plants safely is of the upmost importance.

‘I

t’s no good saying ‘we’ve been operating this process for 20 years, so we know it is safe’’, says Dr Caroline Ladlow, safety services manager at Kindlow Safety Services. ‘You need to prove why you think it is safe and this includes any potential maloperations as well as the normal process.’ Process safety testing involves mimicking what happens during a chemical reaction on a plant, but at a laboratory scale, be it the normal process or what happens if there is a maloperation or potential runaway reactions. Kindlow Safety Services provides process safety testing to define the characteristics of chemical reactions and their safe processing parameters by way of process hazard investigation. These tests help companies establish their basis of safety for a process plant. The company utilises various different testing methods, which include differential scanning calorimeter, carius tubes, isothermal calorimetry and adiabatic calorimetry. Dr Ladlow adds: ‘If you have the data, you know what you are dealing with and you can put appropriate measures in place if required and define the Basis Safety for your process. There are still too many plants in operation using the outdated naive concept that laboratory testing isn’t necessary.’ All test methods are in line with the latest industry best practice and regulations in the UK and the company can also offer solutions and guidance to ensure that every process that results in a chemical reaction is safe. ‘As our origins are from within industry, we are not just a testing house. We work with our clients to provide solutions for their particular process. We have a flexible approach and wherever possible adapt the experiments to mimic the plant process rather than make the process fit the standard test.’ As technology and industry knowledge evolves, so too does the process safety testing process. ‘As technology develops, the measures that industry can use to ensure safe operations of their processes becomes more sophisticated and our testing also evolves to take this into account.’

Dr Ladlow will be talking more about process safety testing and looking at previous incidents in the UK on the morning of the first day of ChemUK 2019, an exhibition and conference for the UK chemical industry supply chain.

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Argus Mediterranean Storage and Logistics

SCHEMUK av 2019S l SPEAKER INTERVIEWS e â&#x201A;Ź up 50 er e 0 - ar bo ly b ok ird by : 12 Ap ril

6-7 June 2019 | Valletta, Malta Meet and do business with decision-makers from the crude and products storage and logistics market

3 reasons to attend: 1. Your only event to focus on strategy, the development of local and international markets, raising funds for storage and tank terminals and other critical issues

Official publication:

2. Identify new business opportunities in a thriving market 3. Connect with senior executives from Europe, north Africa and the Middle East

Petroleum illuminating the markets APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

Find out more:

www.argusmedia.com/med-storage 87

ADVERTISERSâ&#x20AC;&#x2122; INDEX

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IP Week

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@kincole1 The production cap is in place when there is more oil in storage than it should be to my understanding. OPEC countries use this measure to regulate oil prices.

@chigrl #China will spearhead global planned liquids storage capacity in 2023 (storage terminals that store crude #oil, petroleum #products and #chemicals)

Front Cover, 64, 65 73 42, 43 7

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Midwest Steel

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Nordic Storage

@NEBCanada #FactoftheDay: When the combo of available #pipeline capacity & rail export capability is insufficient to transport #oil produced in Western #Canada to markets, excess volume goes into storage & results in lower prices for most CDN #crudeoil benchmarks.

Inside Front Cover

ILTA

J de Jonge

@mwtnews With more than 1,200 miles of pipeline and 2.1 million barrels of storage, Oryx is touted as the largest privatelyheld crude oil pipeline and storage terminal operator in the Permian Basin.

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FPS Expo

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What the storage terminal sector has been saying on Twitter. Follow @tankstorageinfo for the latest news & developments and @TStorageAwards for more about our global awards ceremony and gala dinner!

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STORAGE IS GETTING SOCIAL

PGLC 29

@kxviswan123 Crude oil glut is gone in the rest of OECD. US glut is due to pipeline fills of 31 MBLS and storage capacity additions of over 100 MBLS. Even exports need additional storage. Remember also that SPR release is 45 MBLS since 2014.

@riskparty63 US STORAGE IS US SHALE NOT ABLE TO GET CLIENTS! When is market going to admit and understand? As one mighty analyst stated already: IT IS CRUDE QUALITY THAT MATTERS

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Outside Back Cover

@US_EnergyNow The number of #pipeline and storage terminal projects proposed to move shale to the U.S. Gulf Coast has dwindled amid steps by #oil producers to pare exploration spending

@LtdSdn Asia Pacific is also a key market for oil storage and the region is projected to expand at a fastest CAGR of 8.22% from 2016-2024. China, South Korea,Japan and Singapore are the leading countries in terms of volume of oil storage in this region,fueled by the rise in investments

APRIL/MAY 2019 VOLUME 15 ISSUE NO.2

EVENTS l CALENDAR

EVENTS 2019 SEPTEMBER 2019

MAY 2019 1st - 2nd May

OFFICIAL PUBLICATION

CHEM UK 2019 Harrogate, UK The UK’s only dedicated chemical industries ‘national’ supply chain expo & two-day free to attend open conference. Bringing together the UK’s hugely important chemical industrial community for an intensive 2-day networking, business-development, best practice, intelligence gathering, innovation-showcasing and supply-chain sourcing experience. www.chemicalukexpo.com

17th – 19th September

MEDIA PARTNER

Gastech 2019 Houston, Texas www.gastechevent.com

25th – 26th September

OFFICIAL PUBLICATION

Tank Storage Asia Marina Bay Sands, Singapore

15th – 16th May

MEDIA PARTNER

FPS Expo

The leading exhibition & conference for the region’s oil, gas and petrochemical storage industry, delivering valuable business and networking opportunities. www.tankstorageasia.com

Liverpool Exhibition Centre, Liverpool, UK 26th September

www.fpsshow.co.uk

MEDIA PARTNER

Tank Storage Association Conference & Exhibition Coventry, UK www.tankstorage.org.uk

JUNE 2019 3rd – 5th June

SILVER SPONSOR

ILTA Houston, Texas www.ilta.org

OCTOBER 2019 6th – 9th October

6th – 7th June

OFFICIAL PUBLICATION

Argus Mediterranean Storage & Logistics Valletta, Malta Strong global demand for crude and products storage infrastructure indicates there will be significant market growth over the coming years. More and more industry players are expanding their storage capacities and improving road infrastructure. This conference will offer the opportunity to meet with fellow decision-makers to discuss the latest challenges and newest opportunities in the industry. www.argusmedia.com

11th – 13th June

MEDIA PARTNER

EPCA 53rd Annual Meeting Berlin, Germany www.epca.eu

14th – 17th October

OFFICIAL PUBLICATION

API Storage Tank Conference & Expo Denver, Colorado www.api.org

MEDIA PARTNER

Global Petroleum Show

NOVEMBER 2019

Calgary, Canada www.globalpetroleumshow.com

11th – 14th November

MEDIA PARTNER

ADIPEC 12th – 14th June

OFFICIAL PUBLICATION

FETSA AGM Tarragona, Spain www.fetsa.eu

Abu Dhabi, UAE www.adipec.com

21st – 22nd November

MEDIA PARTNER

Third Port of Tarragona hub day 20th – 21st June

OFFICIAL PUBLICATION

Petrochemical Global Logistics Convention Marseille, France PGLC is a new international conference dedicated to the petrochemical logistics community. It will be a regular, international forum for producers, suppliers and traders of petrochemical products globally. Although set in Marseille as a base this is an international forum. In addition to the conference, there will also be a pitch contest for start-ups and new businesses to demonstrate their initiatives. www.pglc.biz

Tarragona, Spain www.porttarragona.cat

DECEMBER 2019 10th – 11th December

MEDIA PARTNER

NISTM Conference & Tradeshow The Woodlands, Texas www.nistm.org

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