Tank Storage Magazine February/March 2020 by Tank Storage Magazine

February/March 2020 | Volume 16 | Issue 01

A NEW ENERGY ERA

THE TRANSFORMATION OF FUEL OIL

‘NOTHING TO WORRY ABOUT’

Vopak reveals how it is focusing on hydrogen, solar power & CO 2 storage to prepare its terminals for change

In-depth analysis on how the global fuel oil market is adapting to the momentous change brought about by IMO 202

The latest on the energy transition, what went wrong for refining in 2019 and demand for heated storage tanks

Established 2005. Trusted. Valued. Influential.

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UP FRONT CONTENTS

CONTENTS Feb / March 2020 | Volume 16 | Issue 01 UP FRONT 04 Contributors

06 Comment

TERMINAL NEWS 08 The Americas 16 Global 18 Africa & Middle East 21 Europe 28 Asia 30 Incident report

TANK TERMINAL UPDATE 32 Tank terminal update: Europe

PROFILES 32 A new energies era 54 Geared for future growth 60 An innovative spirit

MARKET ANALYSIS 37 Balancing the oil market between traditional and new regulatory political risk 41 US energy production transforms global trade 44 Preparing for a decade of change 47 The death and transformation of fuel oil 53 Storage: Linking Europeâ&#x20AC;&#x2122;s supply chain 56 Supporting the energy evolution

62 Preparing for an uncertain future 66 The integral sustainability approach

31 62

PAGE 01

UP FRONT CONTENTS

102

TECHNICAL FEATURES

68 Technical news 78 Simplified proof testing of radar level gauges 82 Following the digital transformation path to prevent plant failures 86 A revolution in asset management 88 Tackling the unique challenges presented by tank outages 91 Harnessing innovation to achieve perfect stormwater discharge 94 Safely automatically draining water from product storage tanks 98 The opportunities for new eco-friendly firefighting foams 101 Evolving maritime fire protection 102 Engineering for real-world problems 104 The benefits of continuous mixing 106 Choosing the right tools to maximise fire safety 109 New requirements for emission control strategies 112 Reaping the benefits of edge intelligence

SHOW PREVIEW 114 StocExpo 2020: Future. Delivered StocExpo returns to the Ahoy Rotterdam promising to deliver the future of bulk liquid storage.

EVENTS

133 ‘Nothing to worry about’

AT THE BACK 136 Advertisers’ index 136 Social storage: What the industry is saying

PAGE 02

133

HES INTERNATIONAL

Holding the bulk of the world

HES WILHELMSHAVEN TANK TERMINAL Storage capacity 1,3 million m

Wilhelmshaven, Germany

HES BOTLEK TANK TERMINAL Storage capacity 510,000 m3 Rotterdam, The Netherlands

HES BOTLEK TANK TERMINAL - BITUMEN Storage capacity 31,500 m3

HES GDYNIA BULK TERMINAL Only direct transshipment

HES HARTEL TANK TERMINAL (project) Storage capacity 1,3 million m3

Port of Gdynia, Poland

Rotterdam, The Netherlands

WWW.HESINTERNATIONAL.EU

UP FRONT CONTRIBUTORS

CONTRIBUTORS Feb / March 2020 | Volume 16 | Issue 01

PUBLISHER

SUBSCRIPTION RATES

Margaret Dunn +44 (0)20 3551 5721 margaret@tankstoragemag.com

A one-year, 7-issue subscription costs €210. Individual back issues can be purchased at a cost of €45 each.

EDITOR

CONNECT WITH US

Jasmin McDermott +44 (0)20 3196 4402 jasmin@tankstoragemag.com

Tank Storage Magazine

David Kelly +44 (0)20 3196 4401 david@tankstoragemag.com

CONTACT

Alison Church +44 (0)20 3196 4305 alison.church@easyfairs.com MARKETING MANAGER Lisa Mattes +44 (0)20 3196 4394 lisa.mattes@easyfairs.com SENIOR SALES EXECUTIVE

A NEW ENERGY ERA

THE TRANSFORMATION OF FUEL OIL

‘NOTHING TO WORRY ABOUT’

Vopak reveals how it is focusing on hydrogen, solar power & CO 2 storage to prepare its terminals for change

In-depth analysis on how the global fuel oil market is adapting to the momentous change brought about by IMO 202

The latest on the energy transition, what went wrong for refining in 2019 and demand for heated storage tanks

@tankstorageinfo

INTERNATIONAL SALES MANAGER

DATABASE MANAGER

February/March 2020 | Volume 16 | Issue 01

T +44 (0)20 3196 4300 F +44 (0) 20 8892 1929 info@tankstoragemag.com www.tankstoragemag.com Easyfairs 2nd Floor, Regal House 70 London Road Twickenham TW1 3QS United Kingdom

Established 2005. Trusted. Valued. Influential.

Front Cover Courtesy: Emerson

ISSN 1750-841X

Baron Bray-Sackey +44 (0)20 3196 4387 baron.braysackey@easyfairs.com CEO EASYFAIRS UK & GLOBAL

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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.

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NEW DECADE. NEW DESIGN. Welcome to the 21st century’s version of the roaring twenties. One hundred years ago, the 1920s was an era characterised by dramatic social and political change with significant cultural and technological advancements. DESPITE the obvious differences between now and then, society is still undergoing significant social, political and economic changes that have even more of a profound impact in today’s globalised and interconnected world.

In preparing for a decade of change, Channoil Consulting provides an overview of some of the key challenges facing the storage sector, such as shifting international trade patterns and the growth of EVs in Europe’s transport fleet.

And the storage sector is certainly preparing for a decade of change and new challenges. Changing global trade patterns, the emergence of new forms of energy as a result of the energy transition as well as the electrification of transport are altering the requirements for the type of storage needed for energy in the future.

Elsewhere, HES Botlek Tank Terminal reveals more about its projected growth strategy in a changing energy environment after it more than doubled its storage capacity in the last two years.

But it is not just the storage sector that is changing. As you can see, Tank Storage is sporting a brand-new look. It’s big, bold and, (we think) beautiful! A lot has changed in the 15 years since the magazine was first launched, and we want to enter the era with a fresh new look. We will be showcasing this new look at our very own Terminal Operators Lounge at this year’s StocExpo from March 10 to 12 so please come by and enjoy our new design over some drink and nibbles with the team. In this edition of Tank Storage, we provide some insight into the decade ahead and how key players across the supply chain are positioning themselves for this new energy landscape. In an exclusive interview, Vopak’s director of new energies explains how it is focusing on hydrogen, solar power and CO2 storage to prepare its portfolio of terminals for change. Marcel van de Kar says that not only is the storage giant embracing the energy transition, it is playing an active role in facilitating the transition by helping to carve out new supply chains based on its centuries of experience. The global fuel oil market is also undergoing momentous transformation thanks to the implementation of IMO 2020. JBC Energy delves into this new era for fuel oil and how the growth of smaller niche markets will ensure it lives on. PAGE 06

Tank Storage can be found in every delegate bag, in the conference, at the Terminal Operators Lounge as well as across the StocExpo show floor so it really will be hard to miss us. In addition, copies can also be found at our fourth Global Tank Storage Awards ceremony and at Tanks and Terminals 2020 in Dubai. I hope you enjoy our new look and we look forward to helping guide you through the 20s! With best wishes,

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TERMINAL NEWS THE AMERICAS

TERMINAL NEWS: THE AMERICAS while the second tank will be leased to Gibson’s marketing segment under an intercompany agreement with the infrastructure segment.

INSTITUTIONAL INVESTORS ACQUIRE CONTANDA Institutional investors advised by JP Morgan Asset Management have completed the acquisition of Contanda from the EQT Infrastructure II fund. This ownership transition will allow Contanda to continue to deliver on its key strategic business objective of doubling its bulk liquid terminal storage capability by 2022 while expanding into the bulk renewable and petrochemical markets and maintaining a leading market position in the refined products, renewable fuels, chemical, and agricultural commodity sectors. G.R. ‘Jerry’ Cardillo, CEO of Contanda, says: ‘This is an exciting time for Contanda. Our new partners recognise our long-term growth potential and are as enthusiastic as we are to further grow into the renewable and petrochemical markets.’ Read our exclusive interview with Contanda’s CEO on pages 48 & 49.

GIBSON ENERGY ADDS ONE MILLION BARRELS TO HARDISTY TERMINAL Gibson Energy has sanctioned the construction of two new tanks comprising one million barrels of new tankage at its Hardisty Terminal. The two new 500,000-barrel tanks will be built at the Top of the Hill portion of the terminal. This represents an expansion of the fourth phase of development at the Top of the Hill, which will be in service by the end of 2020. One of the tanks is contracted to a new investment grade refining customer, PAGE 08

President and CEO Steve Spaulding says: ‘The sanction of two new tanks at the Top of the Hill will further increase our highquality, long-term infrastructure revenues and drive continued distributable cash flow per share growth. ‘We are also very pleased to welcome a new refining customer to the terminal, reflecting the importance of Hardisty to downstream players looking to secure heavy crude feedstocks from Western Canada. In addition, we remain in discussion for further tankage opportunities, leading to our confidence in our ability to continue to sanction tankage at a rate of two to four tanks per year in 2020, and beyond.’

PEMBINA PIPELINE CLOSES ON KINDER MORGAN CANADA ACQUISITION Pembina Pipeline has completed the acquisition of Kinder Morgan Canada and the US portion of the Cochin Pipeline system for C$4.35 billion. Mick Dilger, Pembina’s president and CEO says: ‘We are pleased to have closed the highly strategic Kinder Morgan transaction earlier than originally expected, which will allow us to realise a full year of contribution from these assets in 2020. The newly acquired assets provide enhanced integration within our existing franchise, entrance

into exciting new businesses and clear visibility to creating long-term value for our shareholders. ‘Our teams will now focus on completing the integration activities and pursuing the $100 million of additional run-rate adjusted EBITDA we expect to realise over the coming years.’

FREEPORT LNG STARTS OPERATIONS ON FIRST LIQUEFACTION TRAIN Freeport LNG has started commercial operations on its first liquefaction train, which is part of a multi-train liquefaction facility on Quintana Island near Freeport, Texas. Commercial operations on Freeport LNG’s Train 2 started in January. Construction on Freeport LNG’s Train 3 is nearly complete with commercial operations expected in May 2020. Michael Smith, founder, chairman and CEO of Freeport LNG, says: ‘This is a significant milestone for Freeport LNG and we now look forward to commencing commercial operations of Trains 2 and 3.’ Freeport’s three trains are expected to produce in excess of 15 mtpa and a fourth train is in development. The company has raised just over $1 billion for its Train 4 project which, combined with a contemplated bank facility, will provide the capital required for Train 4. A final investment decision for Train 4 is targeted for the first quarter of 2020. When it comes online, Freeport LNG will rank as the 8th largest LNG facility globally.

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TERMINAL NEWS THE AMERICAS

SEMPRA LNG & ARAMCO SUPPORT PORT ARTHUR LNG PROJECT Sempra Energy and Saudi Aramco have signed an interim participation agreement for the Port Arthur LNG export project in Jefferson County, Texas. The agreement, which sets out how the companies will work together on prefinal investment activities, represents another milestone for both companies after having signed a heads of agreement in May 2019 for the purchase of five million tonnes per annum of LNG and a 25% equity investment in the Port Arthur LNG project. The initial phase of the project is fully permitted and is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities to enable the export of 11 Mtpa of LNG on a long-term basis. Amin H. Nasser, Saudi Aramco’s president and CEO, says: ‘The global demand growth for LNG is expected to continue in the coming years, and we see significant opportunities in this market. This agreement with Sempra Energy is another step forward for Saudi Aramco’s long-term gas strategy, and toward becoming the global leading integrated energy and chemicals company. Chairman and CEO of Sempra Energy Jeffrey Martin adds: ‘Port Arthur LNG is expected to play a critical role in helping shape the future of global energy trade.’ The definitive agreements remain subject to finalisation and corporate approvals by each party.

EDGEWATER MIDSTREAM SECURES $400 MILLION FOR STORAGE TERMINAL DEVELOPMENT Edgewater Midstream has secured a capital commitment of $400 million from EnCap Flatrock Midstream to focus on the acquisition, development, and operation of pipeline and terminal facilities. Edgewater was formed in late 2019 to provide independent midstream logistics solutions to refiners, producers and marketers of crude oil, refined products and other bulk liquids. The company will focus on pipeline and terminal solutions between and in proximity to major North American petroleum trading hubs and demand centres. Its three founders are Stephen Smith, CEO, Brian Thomason, CCO, and Mike Truby, COO. CEO Stephen Smith says: ‘Changing

dynamics in the North American petroleum market present attractive opportunities for Edgewater. We are thrilled to partner with an experienced, strategic investor like EnCap Flatrock Midstream. In addition to a large financial commitment, EnCap Flatrock’s significant midstream industry expertise, relationships and successful track record provide a formidable platform to support Edgewater’s growth. ‘Of primary importance, our culture, goals and approach to value creation and risk management are aligned. When forming Edgewater, we recognised that societal, technological and policy trends are reshaping the arena in which traditional oil and gas midstream businesses operate. Our team embraces new technologies and environmentally sustainable practices.’

IFM CONTRIBUTES EQUITY INTEREST IN FREEPORT LNG TO BUCKEYE IFM Global Infrastructure Fund has contributed its 57.6% equity interest in Freeport LNG’s second liquefaction train into Buckeye Partners. Train 2 successfully began commercial operations on January 17 with gas deliveries from BP under its 20-year tolling agreement. Clark C. Smith, president and CEO, says: ‘The contribution of IFM Global Infrastructure Fund’s equity interest in Train 2 is the first step in a broader diversification strategy for Buckeye and further demonstrates IFM’s support of and commitment to Buckeye. ‘The Train 2 equity interest will meaningfully increase our cashflows as well as decrease leverage.’

PAGE 10

TERMINAL NEWS THE AMERICAS

KINDER MORGAN STARTS STORAGE CONSTRUCTION PROJECTS Construction work has started on a series of storage expansion & infrastructure projects at several Kinder Morgan facilities. Announcing its fourth quarter 2019 financial results, the company also provided an update on construction activities across its terminal segment. Work has started on a series of projects at Kinder Morgan’s Pasadena Terminal and Jefferson Street Truck Rack, located on the Houston Ship Channel. These $125 million projects include increasing flow rates on inbound pipeline connections and outbound dock lines, tank modifications that will add butane blending and vapour combustion capabilities to 10 storage tanks, expansion of the current methyl tert-butyl ether storage and blending platform, and a new dedicated natural gasoline inbound connection. The improvements are supported by a longterm agreement with a major refiner and a due to be completed by the end of the second quarter 2020. Construction work has also begun for the butane-on-demand blending system for 25 tanks at the company’s Galena Park Terminal. The $45 million project will include the construction of a 30,000-barrel butane sphere and a new inbound C4 pipeline connection as well as tank and piping modifications to extend butane blending to 25 tanks, two ship docks and six cross-channel pipelines. It is expected to be completed in the first quarter of 2021 and is supported by a long-term agreement with a midstream company. A total of 105,000 barrels of additional ethanol storage capacity is being added to Kinder Morgan’s Argo ethanol hub, including both the Argo and Chicago Liquids facilities. There will also be enhancements to the system’s rail loading, rail unloading and barge loading capabilities. An upgrade of the Battleground Oil Specialty Terminal, a leading fuel oil storage terminal on the Houston Ship Channel has also been authorised. The work comprises adding a pipeline to allow for segregation of high sulphur and low sulphur fuel oils. Detailed engineering and design work is underway on the $22 million project, which is expected to be operational in the fourth quarter of 2020.

PAGE 12

PBF ENERGY COMPLETES ACQUISITION OF SHELL’S MARTINEZ REFINERY PBF Energy has completed the acquisition of Martinez refinery and related logistics assets from Equilon Enterprises, part of Shell, for $960 million. PBF has increased its total throughput capacity to more than one million barrels per day through this acquisition and becomes the most complex independent refiner with a consolidated Nelson Complexity of 12.8. Along with the transaction, PBF has entered into market-based, crude oil supply and product offtake agreements with Shell. The 157,000 barrel-per-day, dualcoking Martinez refinery is located on an 860-acre site in the City of Martinez in California. The refinery is a high-conversion facility with a Nelson Complexity Index of 16.1, making it one of the most complex refineries in the US. The facility provides for operating and other synergies with PBF’s Torrance refinery in Southern California. A number of high-quality onsite logistics assets are included in the transaction, including a deep-water marine facility, product distribution terminals and refinery crude and product storage facilities with 8.8 million barrels of shell capacity. PBF’s chairman and CEO Tom Nimbley says: ‘The acquisition of Martinez is a significant strategic step for PBF as we expand our West Coast operations. Martinez is a top-tier asset, is a perfect complement to our existing assets and provides increased opportunities for PBF’s West Coast operations to deliver value.’ Additionally, PBF Energy and Shell has agreed to jointly move forward with reviewing the feasibility of building a proposed renewable diesel project that would repurpose existing idled equipment at the Martinez refinery to create a renewable fuels production facility.

KINDER MORGAN SELLS PEMBINA PIPELINE SHARES Kinder Morgan has sold all 25 million of its shares in Pembina Pipeline for $764 million. The company says that the sale is consistent with its intention to convert the shares into cash in an opportunistic and non-disruptive manner. Kinder Morgan will use the proceeds to pay down debt – creating balance sheet flexibility in 2020.

Canada

PEMBINA PIPELINE EXECUTES EPC FOR PETROCHEMICAL FACILITY Canada Kuwait Petrochemical (CKPC) has executed a lump sum engineering, procurement and construction contract for a propane dehydrogenation facility within Pembina Pipelines integrated PDH and polypropylene upgrading facility. With this contract, CKPC has fixed around 60% of the cost of the facility so far. Following this contract, Pembina has revised its proportionate share of the capital cost of the facility, including the 100% directly owned supporting facilities, to $2.7 billion. Heartland Canada partners, a 50/50 partnership between Fluor Canada and Kiewit Construction Services, is the EPC contractor for the facility. The facility is expected to be in commercial service in the second half of 2023. Mick Dilger, Pembina’s president and CEO says: ‘This project is highly strategic for Pembina and our producer customers in the Western Canadian Sedimentary Basin. It offers a new demand source for domestically produced propane and supports ongoing development of Canada’s world-class hydrocarbon resources.’

Navigator Terminals provides over 1.28 million m3 of storage across our 4 UK Storage Terminals. We deliver a quality service driven by innovation and underpinned by excellence in health & safety and environmental consideration. Contact the commercial team: Navigator Terminals +44 (0) 1708 863399 mail@navigatorterminals.com

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TERMINAL NEWS THE AMERICAS required the company to put the units in service within four years, by May 2020.

CAMERON LNG REQUEST 72-MONTH EXTENSION FOR EXPORT PLANT Cameron LNG has filed a request for the US Federal Energy Regulatory Commission for a 72-month extension until March 2026 for the second phase of the Cameron LNG export facility in Louisiana. The company says in the filing it anticipates making a final investment decision by mid-2021 to add two additional liquefaction trains and that construction of the trains could take up to 58 months. One train is already operational at the plant and all the trains at Cameron are designed to export five million tonnes per annum. Cameron says that first phase of the project cost $10 billion. According to analysis by Reuters, US LNG export capacity is expected to jump to 10.0 bcfd by the end of 2020 and 10.7 bcfd in 2021 from the current 7.8 bcfd currently. FERC approved construction of Cameron 4 and 5 in May 2016 in an order that

Reuters reports that the company said it was not able to start work on Cameron 4 and 5 in part due to a change in circumstances of one of its joint venture partners.

PHILADELPHIA ENERGY SOLUTIONS FINED OVER SAFETY & HEALTH HAZARDS Philadelphia Energy Solutions has been fined $132,600 by OSHA for serious safety and health hazard violations following a fire and explosions that led to the refinery’s closure and bankruptcy. The fire and subsequent explosions on June 21, 2019 released 5,000 pounds of hydrofluoric acid, however no one was seriously injured. Following the incident PES shut down the Girard Point Refinery Complex in Philadelphia, Pennsylvania and declared bankruptcy.

Administration says that its inspection found deficiencies in the refinery’s process safety management programme, including failing to establish or implement written procedures, insufficient hazard analysis and inadequate inspection of process equipment for highly hazardous chemicals used in the process. Theresa Downs, OSHA Philadelphia area director, says: ‘When employers fail to evaluate and address potentially hazardous conditions associated with chemical processes, catastrophic events such as this can occur. OSHA’s process safety management standard requires that employers conduct regular inspections to ensure process equipment meets industry standards.’ PES has 15 business days from receipt of the citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

Credit: Matt Rourke/ AP Photo

The US Department of Labour’s Occupational Safety and Health 1 31/1/20 10:30

anunci-tepsa-adaptacio-175x120_ENG.pdf

YEARS

CMY

PAGE 14

TERMINAL NEWS THE AMERICAS

BUCKEYE TO BUY MARINE STORAGE TERMINALS FROM MAGELLAN Magellan Midstream Partners will sell three marine storage terminals to Buckeye Partners for $250 million. The three terminals are located in New Haven, Connecticut, Wilmington, Delaware and Marrero, Louisiana. Michael Mears, chief executive officer, says: ‘Magellan remains focused on capital discipline and managing our business for the long term. Optimisation of our asset portfolio, including divestiture of facilities outside our strategic footprint, is an important element to maximise unitholder value and our strong financial position.’ The sale is expected to close by late first quarter or early second quarter 2020.

NORTHLEAF ACQUIRES SIGNIFICANT STAKE IN DOUGLAS TERMINALS Northleaf Capital Partners has acquired a 90% stake in Douglas Terminals from Hartree Partners and Ghent Transport & Storage. The terminal is a 557,000 m³ liquid bulk storage facility based in the Port of Ghent, Belgium. It comprises 17 tanks for the storage of jet fuel, gasoil, diesel and biodiesel. Hartree and GTS started commercial operations at the terminal in 2017 and GTS will retain a 10% stake and continue to operate the terminal under a management services agreement. Additionally, as part pf the transaction, Hartree, GTS and Northlead have agreed to jointly develop Max Terminals,

a new liquid storage terminal to be located on land adjacent to the Douglas Terminals site. Roderick Gadsby, managing director at Nortleaf, says: ‘Direct investments in high-quality bulk liquid storage assets are consistent with Northleaf’s strategy and offer our investors significant potential for stable, long-term returns. This investment further strengthens and diversifies Northleaf’s portfolio of bulk liquid storage assets that now includes investments in the US, UK, Belgium, Australia and New Zealand.’ GTS owner Yves Bienfet adds: ‘We have found our ideal long-term partner in Northleaf and are pleased that it supports Douglas Terminals’ strategy going forward. We are eager to work together with them in relation to Douglas Terminals, the development of Max Terminals and future opportunities in liquid storage.’

By the Tank Industry, for the Tank Industry

EEMUA’s role in the tank storage industry is to improve and promote safe, efficient use of heavy industrial engineering equipment and materials – to benefit people, the environment and business. For more than 75 years EEMUA has captured and shared knowledge with Members across engineering disciplines, geographies, generations, technologies, industries and times of change. EEMUA’s collaborative approach has proven important as new industries face challenges that traditional industries have already mastered. Safety and efficiency knowhow contributed ‘by the industry, for the industry’ is shared as practical aids for engineers in their work to make the environment and everyone’s future safer and more prosperous: • Checklists and Information Sheets – for specialist engineering tasks • Industry-recognised guides and handbooks – EEMUA Publication 159: Above ground flat bottomed storage tanks – a guide to inspection, maintenance and repair • Training Choices – certified to satisfy professional bodies, regulators and professional development, flexible to fit work schedules on-site and off-site A non-profit, Corporate Membership organisation, EEMUA’s policies and activities are driven by Members. Join EEMUA and share the engineering knowhow that will drive safety and prosperity throughout the 21st Century. WWW.EEMUA.ORG Contact membership@eemua.org or call on +44 (0)20 7488 0801

PAGE 15

TERMINAL NEWS GLOBAL

TERMINAL NEWS: GLOBAL Global

OPEC TO REDUCE GLOBAL PRODUCTION BY 500,000 BARRELS TO BOOST PRICES OPEC & non-OPEC members have agreed to cut production by 500,000 barrels a day starting in January 2020 to help boost oil prices amid concerns of an economic slowdown. The oil producing cartel agreed to cut output for the first quarter of 2020 but did not commit to any further action beyond March. The combined cuts amount to 1.7 million bpd, or 1.7% of global production. Several participating countries, mainly Saudi Arabia, will continue their additional voluntary contributions. Russia will make an additional cut of

70,000 b/d beyond its current agreed cut of 300,000 b/d. Ed Crooks, vice-chair, Americas at Wood Mackenzie says that the action shows how the OPEC+ group is taking a flexible approach to managing the market. Ann-Louise Hittle, vice president macro oils, Wood Mackenzie, adds: ‘The group is taking a highly proactive approach to managing the market and will not commit to restrain beyond March 2020, when both a joint ministerial meeting and an extraordinary meeting will be held in the first week of the month.

‘The fact the agreement runs to March could reduce its supportive impact on the market. However, the proactive, short-term management of the market OPEC+ is signalling is supportive overall to the outlook for 2020 and should avoid a significant downturn in prices.’

‘Russia has gained approval for its request to remove condensate from its quota. Russia’s energy minister Alexander Novak confirmed the country’s commitment to cooperate with OPEC to balance the market. ‘The new Saudi energy minister, Prince Abdul Aziz, was adamant that all those in the agreement must adhere and not leave the burden on Saudi Arabia.

PAGE 16

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Towards Ongoing Progress in this rapidly changing world where today's knowledge is already outdated tomorrow; we will have to adapt.

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TERMINAL NEWS AFRICA & MIDDLE EAST

TERMINAL NEWS: AFRICA & MIDDLE EAST Pakistan

EXCELERATE & ENGRO ELENGY TO EXPAND LNG STORAGE TERMINAL Guinea

Saudi Arabia

NEW REFINERY AND STORAGE FACILITY ANNOUNCE FOR GUINEA

SAUDI ARAMCO INVESTS $5 MILLION IN BLOCKCHAIN TRADING PLATFORM

Africa Finance Corporation and Brahms Oil Refineries have signed a joint development agreement for a new petroleum storage and refinery project in Kamsar, Guinea.

Saudi Aramco Energy Ventures has invested $5 million into VAKT, a company utilising blockchain for commodity post-trade processing.

Africa Finance Corporation and Brahms Oil Refineries have signed a joint development agreement for a new petroleum storage and refinery project in Kamsar, Guinea. This joint development will include a 76,000 m3 crude oil storage terminal, a 114,200 m³ terminal for refined products, ancillary support transportation infrastructure and a 12,000 barrel per day modular refining facility. AFC will invest in the project development workstreams to help ensure that the project reaches financial close in 2020. The project will be instrumental for Guinea to achieve its economic and developmental goals, which are severely hampered by Guinea not having any refining capacity. Once operational, the refinery will have the capacity equivalent of one-third of its demand for refined products, reducing Guinea’s reliance on imported refined products, improving the country’s balance of payments, and reducing foreign currency demand. Amadou Wadda, senior director project development and technical solutions team at AFC, says: ‘The Brahms refinery project will have a tremendous impact in the country’s development. Brahms Oil Refineries CEO Daouda Fall adds: ‘To partner with AFC is a great milestone and brings us one step closer to our goal of reaching financial close in early 2020 and kickstarting construction. PAGE 18

Saudi Aramco Energy Ventures joins VAKT’s current shareholder base of 12 investors, comprised of international players involved in energy and commodities trading. The investment will help VAKT with further development of the platform and expansion into new markets – particularly into Asia. As part of the deal Aramco Trading will become a new future user of the platform, which is currently live in the North Sea BFOET crude oil market. The company will bring its own North Sea trading volumes, adding to VAKT’s already high market share, and is ready for VAKT’s expansion into new markets. The platform manages physical energy transactions from trade entry to final settlement, eliminating reconciliation and paper-based processes. Built using blockchain technology, it provides a single source of truth for buyers and sellers that is safeguarded with an immutable, distributed audit trail. Hans Middelthon, managing director of Saudi Aramco Energy Ventures, says: ‘VAKT has demonstrated that their platform has the potential to digitise what is currently a very manual process and be truly transformative to end users and customers. Leveraging blockchain theory and applying it to the complicated world of post-trade processing, VAKT has made a compelling pitch to become an integral part of market infrastructure. SAEV’s mission to develop and deploy technologies into Aramco’s operations.’

Excelerate Energy and Engro Elengy Terminal will expand the EETL LNG import terminal in Port Qasim, Pakistan. Under the Heads of Agreement, Excelerate will exchange its existing floating storage and regasification unit Exquisite with a newbuild FSRU, Hull 2477, which is currently under construction at Daewoo Shipbuilding and Marine Engineering shipyard. Hull 2477 will increase EETL’s send-out capability by more than 150 million standard cubic feet per day and increase its LNG storage capacity from 150,900 m³ to 173,400 m3. Excelerate will take delivery of Hull 2477 in April 2020 and EETL plans to start expanded operations in Pakistan before winter 2020. Excelerate CCO Daniel Bustos says: ‘We are proud to partner with Engro and Vopak on this expansion to help meet the growing demand for natural gas in Pakistan. We continuously work with our customers to ensure our terminals adjust to the changing needs of their markets. In the nearly five years of essentially non-stop operations in Pakistan, we have a proven track record of safe and reliable operations at peak performance.’ The facility, Pakistan’s first floating LNG import terminal, began operations in March 2015 and has been delivering up to 690 MMcf/d of natural gas directly into Sui Southern Gas’s natural gas pipeline system.

Flying the flag 6 countries in northern Europe 23 strategically located terminals 5.8 million cubic metres of storage 85+ years of experience 1st choice in bulk liquid and gas storage Call us on +44 (0)1737 778108 | www.InterTerminals.com

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TERMINAL NEWS AFRICA & MIDDLE EAST

United Arab Emirates

ADNOC & ENI SIGN AGREEMENT OVER CARBON CAPTURE STORAGE ADNOC and ENI have signed a strategic framework agreement to explore collaboration opportunities for carbon capture utilisation and storage as well as research and development across the oil and gas sector.

Nigeria

ENI TAKES FINAL INVESTMENT DECISION FOR NIGERIA LNG EXPANSION A final investment decision has been taken by Eni and its partners for the expansion of LNG plant Nigeria LNG. The development, which is expected to start-up in 2024 will increase annual production capacity to more than

30 million tonnes per year from the current level of 22.5 million tonnes.

The agreement will utilise the two leading energy producers’ talent and technologies to unlock value in areas of strategic importance to both companies while reinforcing their existing partnerships across the oil and gas value chain.

The expansion project will enable the production of an additional 7.6 Mtpa of LNG, of which 4.2 will come from one new liquefaction train and 3.4 coming from the debottlenecking of existing trains.

It also builds on ADNOC’s recently announced sustainability goals, particularly its commitment to decrease its greenhouse gas intensity by 25% by 2030.

Nigeria LNG has delivered more than 4,700 LNG cargoes around the world in the 20 years it has been operational. With this expansion, it will become one of the world’s most important LNG hubs and will allow partners to further leverage Nigeria’s abundant associated gas resources.

The companies will jointly explore collaboration opportunities relating to innovative geomechanical and geochemical workflows for CCUS programmes as well as in advanced analysis and modelling of thermally induced fractures in oil and gas reservoirs. Both geomechanics and geochemistry relate to the development of CCUS programmes.

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His Excellency Dr. Sultan Ahmed Al Jaber, UAE minister of state and ADNOC CEO, says: ‘We are pleased to sign this strategic framework agreement with Eni that builds on our successful partnerships across the oil and gas value chain. Importantly, the agreement underscores ADNOC’s targeted approach to value-add partnerships that is enabling us to unlock and maximise value from Abu Dhabi’s substantial hydrocarbon resources as we deliver our 2030 smart growth strategy.’ Claudio Descalzi, CEO of Eni, adds: ‘Both companies will collaborate to pursue new mid-term solutions aimed at leading the current energy transition in line with Eni’s decarbonisation strategy aimed to achieve net zero emissions in its upstream business by 2030 and ADNOC’s recently announced sustainability goals.

Phone HQ: +46-31 53 45 00 Phone Operations: +46-31 764 96 00 Email: info@nordicstorage.se Website: www.nordicstorage.com

PAGE 20

TERMINAL NEWS EUROPE

TERMINAL NEWS: EUROPE Germany

being invested in the Vassiliko energy hub, in addition to the €300 million investment by VTTV.

Cyprus

VARO COMPLETES SHARES PURCHASE IN BAYERNOIL REFINERY

NEW CYPRUS STORAGE TERMINAL INAUGURATED

Varo Energy has completed its additional shares purchase in the Bayernoil Refinery with co-shareholder BP.

Petrolina’s new €80 million liquid petroleum storage terminal in Vasiliko has been inaugurated by Cyprus’ president Nicos Anastasiades.

It now holds an additional 6.4% in Bayernoil, making Varo the majority shareholder in the German refinery with a total of 51.4% shares. Varo has also acquired BP’s Pmb-plant in Vohburg.

The terminal, which is one of the largest investments ever made in Cyprus by a Cypriot company, comprises 18 tanks with a combined capacity of 113,000 m³, an increase from the 36,000 m³ at the old terminal in Larnaca.

Roger Brown, CEO of Varo, says: ‘Bayernoil has always been an important asset for Varo. It is strategically well located for us, enabling Varo to optimise its supply options across Germany and Switzerland. This acquisition once again increases our ability to provide a secure supply of high-quality products to out customers where they need them and

Petrolina executive chairman Costakis Lefkaritis says: ‘We have accomplished a task of the present and the future. Our facilities at Vasiliko are state-of-theart European specifications with full automation of the terminal itself, which enables the company to deliver high quality products with all environmental safeguards.’

Anastasiades said during the inauguration ceremony that the new facility signals the beginning of the country’s energy plans and described the inauguration as ‘ a new day for Larnaca, for the energy centre and for Cyprus’. He added that a further €200 million is

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TERMINAL NEWS EUROPE

Norway

MARQUARD & BAHLS ACQUIRES STAKE IN NORDIC BLUE CRUDE Marquard & Bahls has acquired a minority stake in Nordic Blue Crude, a Norwegian pioneer in the power-toliquid sector.

The Netherlands

CALDIC SELLS EUROPOORT STORAGE FACILITIES TO FIRST STATE Caldic is selling its tank storage and production facilities in Europoort, The Netherlands, to First State Investments. Caldic is a prominent producer of formaldehyde with its derivatives paraformaldehyde and hexamethylenetetramine. The Caldic Chemie Europoort site comprises jetty, truck and railcar loading and thanks to its strategic location it offers a direct connection to all major European waterways and inland road and rail systems. The site was expanded in 2010 to a total of 174,000 m³ for the storage of methanol and bioethanol. The decision to sell the tank storage and production portfolio represents a pivotal step in executing on Caldic’s strategy to focus more on distribution activities within the food, health & personal care and industrial markets. Rudi Appels, managing director of Caldic Chemie, says: ‘We are thankful to have been part of Caldic for almost 30 years and the growth that we have been able to achieve. We now look forward to new times and new opportunities together with First State Investments. Under their leadership, we will continue to provide our tank storage, our great service and production facilities to our customers.’ Marcus Ayre, partner infrastructure investments at First State Investments, adds: ‘This integrated storage and production facility provides an excellent fit with First State Investment’s long-term infrastructure investment philosophy and is a natural addition to our existing liquid bulk storage platform, EVOS terminals, providing a sizeable foothold in Rotterdam and entry into the attractive chemical storage market.’

PAGE 22

The investment is an important step for Marquard & Bahls to expand its existing portfolio towards renewable energies. The company is actively exploring investment opportunities in the renewable energy sector as a result of the rapidly changing energy landscape. It intends to become an active participant in the energy transition. As a first step in the renewable transport fuels, the company is now investing in Nordic Blue Crude. The Norwegian company is on its way to establish the first publicly known power-toliquid project on an industrial scale. It will provide crude with first mover advantages and will enable it for further expansion. The company is engineering its first E-Fuel 1 plant in Herøya with a production capacity of 10 million litres of synthetic hydrocarbons per year, using renewable electricity, water and CO2 as feedstocks. It is expected to reach full production capacity in 2022, with room for expansion to a further 100 million litres. After the refining step, the product mix will consist of kerosene, diesel, wax and naphtha. Marquard & Bahls CEO Mark Garrett says: ‘As part of our strategy, we intend to further diversify our portfolio and increase our commitment to renewable energies, among other things. Our investment in Nordic Blue Crude is an important first step in this direction. The project is the first of its kind for us, but others will follow if the right opportunities arise.’

The Netherlands

VESTA TERMINALS ANNOUNCES BIO JET FUEL STORAGE EXPANSION Vesta Terminals has announced plans to expand storage capacity at its Antwerp facility for (bio) jet fuel, gasoil & diesel. The expansion comprises five new tanks of 30,000 m³ each, totalling 150,000 m³ of storage, which will be connected to the jetties and the CEPS pipeline system, connecting the terminal to most major airports in West and North-West Europe. Dedicated pipeline systems for (bio) jet fuel will be built to ensure product quality requirements. The investment is compliant with the latest health, safety and environmental standards and includes investments in water draw-off and (multiple) filtering systems, additivation and round pumping systems. The project brings total capacity of Vesta Terminal Antwerp to almost 950,000 m³. The operator says that European jet fuel supply has been under increasing pressure due to growing demand and logistical constraints and more storage capacity is needed to meet this demand. Tanks and pipeline infrastructure will be built with maximum flexibility and allow the storage and handling of different grades and products simultaneously. Most of the capacity at the terminal has been built for multiple product use, reducing risk for its customers in negative market structures. The investment supports the need for an efficient jet fuel supply infrastructure and the growth ambition of Vesta Terminals.

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TERMINAL NEWS EUROPE

The Netherlands

FINCO ACQUIRES STAKE IN RENEWABLE FUELS COMPANY FinCo Fuel Group has acquired a majority stake in GoodNRG, the holding company of renewable fuels pioneer GoodFuels. The move enables both parties to utilise its complementary strength, sourcing, supply management and logistical power of FinCo fuel, which will be optimal for the growing needs of GoodFuels. As a result both parties expect to contribute to a further reduction of CO2 and to accelerate the energy transition with more impact. Pieter Peeters, CEO FinCo Fuel Nederland, says: ‘With this acquisition FinCo Fuel Group shows its ambition and commitment to further boost the transition to sustainable mobility. GoodFuels opened the sustainable fuel market for shipping and transportation fuels among others for a new customer base in a refreshing way. With our capability and network, we can further support the GoodFuels brand with its evolution.’ Dirk Kronemeijer, CEO GoodFuels, adds: ‘In order to maintain our position in this

PAGE 24

growing market we were looking for a wellfunded partner from the industry who understands and respects our impact driven sustainable DNA. ‘In FinCo Fuel we have found this partner and together we can fulfil our joint mission to accelerate the energy transition in heavy transportation in an even better way.’

INTER TERMINALS ANNOUNCES NEW STRUCTURE FOR STORAGE FACILITIES Inter Terminals has a new organisation structure for its bulk liquid storage facilities in the UK, Ireland and the Netherlands. David McLoughlin will be heading up the combined UK & Irelands regions as managing director and country manager. The restructuring follows the integration of NuStar Europe, which was acquired by Inter Terminals at the end of 2018. This acquisition has swelled the company’s storage capacity in the UK to more than 1.8 million m3, making it the largest independent storage provider in the UK.

McLoughlin will oversee two-thirds of the company’s 650-strong workforce in facilities along England’s east and west coasts, as well as in Grangemouth and Clydebank in Scotland, in Belfast in Northern Ireland, and on the Shannon Estuary in Ireland. The company says his new role fully aligns these important regions with the country management structure in place at its facilities in the Netherlands, Germany, Sweden and Denmark. McLoughlin says: ‘It reflects the significant expansion of the company’s storage locations in the UK, and the Netherlands as a result of the acquisition and provides these regions with a dedicated management structure, whilst also creating a uniform model across the six countries in which the company now operates.’

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Author, Make Your Bed: Little Things That Can Change Your Life and Maybe the World Retired U.S. Navy four-star admiral and former chancellor of the University of Texas system, William H. McRaven opens our conference with a presentation on leadership and risk management. McRaven is an expert on the topic, having commanded special operations forces at every level, before eventually taking charge of the U.S. Special Operations Command. He is a recognized national authority on U.S. foreign policy and has advised Presidents George W. Bush and Barack Obama as well as other U.S. leaders on defense issues. McRaven has been recognized for his leadership many times, including in 2011, when he was the first runner-up for TIME Magazine’s “Person of the Year.” McRaven’s book Make Your Bed: Little Things That Can Change Your Life and Maybe the World, based on his 2014 UT commencement speech, has received worldwide attention.

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TERMINAL NEWS EUROPE write-off of capitalised expenses at the Stolthaven Newcastle terminal and market softness, particularly in Asia-Pacific.

The Netherlands

STOLTHAVEN’S FINANCIALS REFLECT STABLE MARKET CONDITIONS Stolthaven Terminals’ fourth quarter financials reflects stable operating markets, with a revenue of $61.7 million, slightly down from $62.9 million in the third quarter. Utilisation at Stolthaven’s wholly owned terminals fell to 89.4% in the fourth quarter from 91.0% in the prior period, and total product handled decreased by 7.4%. Average storage and throughput revenue per cubic meter of leased storage remained stable during the quarter. Stolthaven reported a fourth quarter operating profit of $11.7 million, down from $19.5 million in the third quarter, mainly due to the $5.5 million impairment. Equity income from joint ventures was up marginally in the quarter, driven mainly by an increase in product handled at Stolthaven’s joint venture terminal in Ulsan, South Korea. Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen, says: ‘Stolthaven’s result decreased in the quarter, mainly due to the $5.5 million

‘At Stolthaven, despite the recent market softness and the effects of the US-China trade dispute, we expect improvements in operational performance to continue to strengthen results.’ The Netherlands

VOPAK COMPLETES ALGECIRAS TERMINAL DIVESTMENT Vopak has completed the sale of its oil terminal in Algeciras to First State Investments. This divestment is the finalisation of the sale of three terminals (Amsterdam, Hamburg and Algeciras) to First State Investments. As previously reported, the total agreed transaction value of the terminals is €723 million and follows a strategic review of these terminals in 2018. Vopak says that its main focus in Europe is to further strengthen its position in the industrial clusters of Rotterdam and Antwerp. The company will publish its 2019 fullyear results on February 12.

The Netherlands

LBC TANK TERMINALS TO EXPAND ROTTERDAM STORAGE TERMINAL LBC Tank Terminals will expand its Rotterdam-Botlek storage terminal with an additional 70,000 m³ of chemical capacity. The investment will bring total capacity at the facility to 180,000 m³ and is part of a multiyear investment programme to revamp and expand the Rotterdam site. The additional capacity will serve the growing market for the storage and transhipment of chemicals in the Port of Rotterdam.

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TERMINAL NEWS EUROPE The project will involve the expansion of the newly built deep-sea jetty with two additional berthing positions. The jetty can handle vessels up to 75,000 DWT with a maximum draft of 14.5 meters. The expansion is due to be complete by the third quarter of 2021.

The Netherlands

I SQUARED CAPITAL & RUBIS AGREE JV OVER RUBIS TERMINAL I Squared Capital and Rubis will form a joint venture partnership through an investment in Rubis Terminal. As part of the agreement, I Squared Capital will acquire 45% of the shares in Rubis Terminal and will jointly control the company alongside Rubis. Rubis Terminals comprises 13 facilities and a capacity of 3.5 million m³ to provide critical bulk liquid storage infrastructure to a diversified base of industrial customers and across a broad range of petroleum, chemical and agri-food products. The partnership will accelerate Rubis Terminal’s strategic plan to strengthen its position within its current footprint, diversify its product

offerings and explore expansion outside of Europe.

needed to extend the site’s activity beyond 2020.

Adil Rahmathulla, managing partner at I Squared Capital, says: ‘The exclusive transaction with a listed industrial company is the result a deep relationship developed over many years.

The LNG terminal can evolve as a multimodal platform in the western Mediterranean basin as it has significant assets enabling to offer a diversity of LNG services to its customers: rail, road, river and sea. In addition to the unloading and loading of LNG tankers, the terminal can offer the reloading of bunkering vessels.

‘The existing portfolio provides a strong foundation for building Rubis Terminal into a leading storage company using the I Squared Capital platform approach of operational optimisation, bolt-on acquisition and select greenfield.’ The closing of the transaction should take place during the first half of 2020.

France

FOS TONKIN TERMINAL TO CONTINUE OPERATING BEYOND 2020

The company says that the terminal is a key asset to support the energy transition and, as a result, it is now working on the development of the loading capacities for small LNG vessels in order to provide the market with the required services to support the growth of LNG as a marine fuel. The terminal could also become a loading point for trains to supply LNG intermediate storage sites outside the LNG terminals. Elengy has already launched the necessary studies for rail connection.

Elengy has announced that the Fos Tonkin terminal will continue operating at the site until 2028. The proposed regasification capacity has been entirely booked (1.5 billion m³ per year) and this commitment has enabled Elengy to take the investment decision

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TERMINAL NEWS ASIA

TERMINAL NEWS: ASIA Australia

CHEVRON BUYS AUSTRALIAN FUELS BUSINESS FROM PUMA ENERGY Puma Energy Asia Pacific will sell its Australian commercial and retail fuels business to Chevron Australia Downstream for AUD425 million. Puma Energy says its priority is to ensure a transparent and seamless transition of operations to Chevron. The company’s bitumen business in Australia is not impacted by this transaction and Puma Energy will continue to invest in to enhance its service to bitumen customers. The transaction is expected to be complete by mid-2020. Emma FitzGerald, CEO of Puma Energy, says: ‘This transaction marks another

positive step forward in Puma Energy’s commitment to optimise our global portfolio and deleverage our balance sheet by the end of 2020. ‘This follows the sale of our business

operations in Indonesia and Paraguay, enabling us to pay down our debt and ensure we are focused on those markets which will drive growth as part of our customer-focused five-year strategy.’

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TERMINAL NEWS ASIA

South Korea

SAUDI ARAMCO COMPLETES ACQUISITION OF HYUNDAI OILBANK Saudi Aramco has completed the acquisition of 17% of Hyundai Oilbank from Hyundai Heavy Industries for $1.2 billion. The investment in South Korea’s Hyundai Oilbank supports Saudi Aramco’s downstream growth strategy of expanding its global footprint in key markets in profitable integrated refining, chemicals and marketing businesses. This enables Saudi Aramco to place crude oil and leverage its trading capabilities. Established in 1964, Hyundai Oilbank is a private oil refining company. The Daesan Complex, where Hyundai Oilbank’s major facilities are located, is a fully integrated refining plant with a processing capacity of 650,000 barrels per day.

China

VOPAK DIVESTS SHARE IN CHINA CRUDE OIL TERMINAL Vopak has completed the divestment of its 49% equity share in the joint venture Vopak SDIC Yangpu Terminal in Hainan, China. The facility handles and stores crude and petroleum products with a capacity of 1.339 million m³. The divestment is the outcome of the strategic review of the terminal that was announced in February 2018.

PAGE 29

INCIDENT REPORT

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

14/1/2020

FREEPORT, ILLINOIS, US

ZHUHAI, GUANGDONG PROVINCE, CHINA

Modern Plating Corporation Employees at a manufacturing plant were forced to evacuate following a spill of hazardous material. Emergency response was deployed to the hydrochloric acid spill after a tank ruptured during a transfer from a truck to a containment area. No-one was injured and hazmat teams quickly cleaned up the spill.

Zhuhai Changlian Petrochemical Workers were evacuated after a spark at an oil refinery resulted in an explosion in the Zhuhai Gaolan Port. Hundreds of firefighters were dispatched to tackle the blaze that sent a large fireball and dense plumes of smoke into the air. Initial investigations suggested there had not been any toxic spills. The fire was quickly extinguished, and environmental monitoring tests were carried out

14/1/2020

12/2/2020

TARRAGONA, SPAIN

BATON ROUGE, LOUISIANA, US

IQOXE facility Two people were killed and eight were hurt following an explosion and fire at a chemical plant in Tarragona. The civil protection agency of Catalonia called the explosion a chemical accident and warned people in parts of the city to not go outside as a preventative measure. Hundreds of firefighters tackled the fire, which raged throughout the night, before it was extinguished.

PAGE 30

Exxon Mobil A fire sparked in the offsite piping at Exxon Mobilâ&#x20AC;&#x2122;s Baton Rouge refinery. The fire was quickly contained in the area where it broke out and no injuries were reported. At the time of writing, the company confirmed that the fire was being contained by its fire team and that air quality monitoring was carried out.

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TANK TERMINAL UPDATE EUROPE

TANK TERMINAL UPDATE: EUROPE Ineos

Socar Turkey

GPS Amsterdam

INEOS

GPS AMSTERDAM

SOCAR TURKEY

Location: Forties Pipeline System, UK

Location: Port of Amsterdam, the Netherlands

Location: Istanbul, Turkey

Products: Oil and gas liquid Capacity: 600,000 barrels of North Sea oil Investment: £500 million Construction/Expansion/Acquisition: The asset will be transformed to extend the life of the pipeline by at least 20 years, into the 2040s Comment: The reliability of the system is being overhauled, which includes modernising environmental systems and implementing the latest technology

Products: Gasoline, gasoline components, biofuels Capacity: 282,500 m

Construction/Expansion/Acquisition: The expansion of its class 1 storage capacity is part of the company’s programme of key asset developments and the new tanks create a larger and more bespoke terminal facility Comment: A rail handling facility has also been developed to equip the site with a cost effective and sustainable alternative to road and river transport

Products: Diesel, gasoline, jet fuel and reformates Capacity: 2.5 million m3 Construction/Expansion/Acquisition: The company has expanded storage capacity at its storage terminal and is adding capacity at its Star refinery, which will make it one of Turkey’s five largest tank terminals Comment: e storage terminal project is complete and the refinery expansion, which will provide an additional 342,000 m3 of capacity is due to be operational in 2021

CLH LBC Tank Terminals

CLH

VTTI, ADNOC

Location: Barcelona, Spain Products: Oil products

VTTI, ADNOC

Capacity: 22,000 m3

Location: Globally

Investment: More than €10 million

Products: Hydrocarbons

Construction/Expansion/Acquisition: The investment to upgrade operations at its Barcelona facility includes two new storage tanks and operational improvements to increase pump flows and improve the safety and environmental protection measures of the facility

Capacity: 9.5 million m3

Comment: Additionally, six tanks have been adapted to enable them to store different products at a cost of €2.4 million to better meet current market demands

Construction/Expansion/Acquisition: ADNOC has acquired a 10% equity stake in VTTI, which owns 15 terminals across 14 different countries with a combined capacity of 9.5 million m3 in key export markets including Asia, Africa and Europe Comment: The transaction significantly contributes to the development and growth of ADNOC’s global marketing, supply and trading platforms

LBC TANK TERMINALS Location: Port of Rotterdam, the Netherlands Products: Chemicals Capacity: 70,000 m3 Completion: Third quarter of 2021 Construction/Expansion/Acquisition: The chemical capacity expansion, bringing total capacity to 180,000 m3, is part of a multiyear investment programme Comment: The project will also involve the expansion of the newly built deep-sea jetty with two additional berthing positions

Rubis Terminal

HES Botlek Tank Terminal

HES BOTLEK TANK TERMINAL

Vesta Terminals

Location: Botlek, Port of Rotterdam, the Netherlands

VESTA TERMINALS

Products: Biodiesel

Location: Antwerp, Belgium

Completion: 20,000 m3

Products: Bio jet fuel

Construction/Expansion/Acquisition: The company has commissioned six biodiesel tanks, bringing overall capacity at the terminal to more than 510,000 m3

Capacity: 150,000 m3

Comment: The investment is backed by multi-year customer contracts PAGE 32

Construction/Expansion/Acquisition: The expansion comprises five new tanks that will be connected to the jetties and the CEPS pipeline system and dedicated pipeline systems for bio jet fuel will be built to ensure product quality requirements

RUBIS TERMINAL Location: Rotterdam, the Netherlands Products: Chemicals Capacity: Second quarter 2020 Construction/Expansion/Acquisition: The expansion comprises nine stainless steel heated tanks and six stainless steel tanks Comment: A new berth will be built for barge access and an extra truck loading station will also be constructed, which will help meet demand for chemical tanks in the ARA

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PROFILE VOPAK

A NEW ENERGIES ERA As new forms of energy continue to thrive and grow on the back of the global energy transition, storage giant Vopak explains how its adaptive and flexible approach ensures it remains relevant in this new energy era 01

THE EMERGENCE of new energies on the back of the growing momentum behind the energy transition is creating opportunities for storage operators to play a key role in carving out new supply chains. The popularity of more environmentally friendly and carbon neutral forms of energy such as hydrogen, solar and electricity is driving demand for logistical infrastructure to supply these new value chains. And storage operator Vopak is one of the midstream players realigning its business strategy to support the growth of these new energies with its extensive experience in developing & managing infrastructure. Recently, the company has announced a series of investments focused on new energies, including a new innovative hydrogen carrier technology and a new solar park in the Netherlands as well as being involved in the Rotterdam hydrogen project H-vision. In an interview with Tank Storage Magazine Marcel van de Kar, director, new energies at Vopak explains how the company is leveraging its expertise in infrastructure as part of this energy shift. ‘The energy transition is happening, and not only are we embracing that, but we are playing an active role in facilitating the transition. ‘We have knowledge on product flows and the dynamics of supply chains, and we can help develop these for new energies. We can utilise our knowledge and experience of infrastructure to facilitate the energy transition and ensure these PAGE 34

‘The energy transition is happening, and not only are we embracing that, but we are playing an active role in facilitating the transition’ new energies have the infrastructure needed on a global scale. ‘We store vital products that are important for today’s society, which still includes oil products but also chemicals, edible oils and gases. However, these products are changing, and we are moving towards storing more LNG and lighter fuels with less sulphur, which is also helping the energy transition. ‘Vopak has been in business for more than 400 years and in that time the company has always been adaptive to change. We have gone from storing tea to LNG, but that change has been a process over many years. Going forward we will continue to be adaptive and flexible to

remain relevant and that means looking at what the future energy supply chains will be.’ FUEL FOR THE FUTURE Last summer Vopak, along with Mitsubishi Corporation, Covestro and AP Ventures, invested €17 million into Hydrogenious LOHC Technologies, the company behind an innovative new carrier technology that makes hydrogen easier and safer to store and transport. The premise of the technology is binding the small hydrogen molecule to the larger dibenzyltoluene molecule, which is an easy-to-handle oil. ‘We are working together to further improve the technology and make hydrogen available on a larger scale by helping to increase global supply chains,’ explains van de Kar. Additionally, Vopak is also a partner of the H-vision project, comprising of Rotterdam-based companies in exploring the large-scale production and application of blue hydrogen in the

PROFILE VOPAK

Rotterdam industrial area. The objective of the project is to supply decarbonised energy by replacing natural gas and coal with blue hydrogen. ‘Hydrogen is a big focus for us. The big challenge in this field is the handling and storage of hydrogen and there are three different technologies available. The first is to use liquid hydrogen but it needs to be stored and distributed at temperatures of -253 °C, which presents several challenges. However, the first vessel has been bought and is being commissioned in Japan. ‘The second is the LOHC technology to make hydrogen easy to handle and, with this technology you can use existing vessels, pipelines, pumps and tanks to handle and store it.’ The third option involves using ammonia as a hydrogen carrier by converting gaseous hydrogen to liquid ammonia, which can then be stored, transported and distributed through existing infrastructure. ‘You can use it directly in the supply chain of ammonia,’ van de Kar says. ‘This way you shorten the whole supply chain and make it greener. ‘The potential of technology in the energy transition is very important. What we can do is combine practical logistics to these new emerging technologies and in that way, we develop new supply and value chains. ‘Storage companies can play a very

important role in connecting demand with supply.’ POWERING THE SUN Vopak is also investing in projects that harness solar power and convert it into electricity. Working with HyET solar, the company has piloted a project involving the application of solar foil on one of its edible oil storage tanks at its terminal in Vlaardingen. The solar cell, which is applied as a lightweight flexible foil, makes it particularly suitable for a storage tank compared to other solar technology which can be rigid and heavy. Following the successful completion of the project Vopak is looking at deploying the technology as part of a large-scale project at one of its terminals in Rotterdam. Khalid Saleh, energy co-ordinator at Vopak, says: ‘With this technology we are able to use an unused surface in a tank terminal for energy generation. One of the struggles is land scarcity but we have seen an opportunity to generate electricity using our existing assets and the electricity can be used for many different functions.’ On a much larger-scale, Vopak, along with Whitehelm Capital and Groningen Seaports, is also investing in a 27 MW solar park. Once complete it will be one of the largest currently in the Netherlands.

The park will be located on 19 hectares of land adjacent to Vopak’s Eemshaven Terminal and the produced green electricity will be made available for local use in Groningen, Vopak terminals and the general electricity market. Saleh says that the consortium has recently received the required permits to start building work. ‘This project fits perfectly with Vopak’s ambition for developing infrastructure solutions for a low-carbon energy future. This project allows us to accumulate knowledge and experience with electricity as a carrier of energy and gives us the opportunity to explore possible add-on applications like electricity storage and conversion for a later stage in Eemshaven.’ NEW SUPPLY CHAINS ‘We are focusing on four areas when it comes to new energies,’ says Kar. ‘Hydrogen is a key focus. CO2 storage and handling needs to be developed and a lot of infrastructure is needed. We are also looking at electricity stored in molecules and green chemistry, which involves the recycling of plastics and feedstocks for the industry. ‘They are all four very different areas but are all new forms of energy. ‘The role we [Vopak] have today and the products we store will continue but it will inevitably change. At the same time, we want to ensure we are developing the role of new energies and products for the future.’

01 Vopak Terminal Vlaardingen 02 Marcel van de Kar, director new energies, and Khalid Saleh, energy co-ordinator at Vopak 03 Vopak solar park Eemshaven 04 Application of thin film PV modules of HyET Solar 05 Application of thin film PV modules of HyET Solar 06 Hydrogenious LOHC Technologies

PAGE 35

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MARKET ANALYSIS OIL MARKET REGULATIONS

BALANCING THE OIL MARKET BETWEEN TRADITIONAL AND NEW REGULATORY POLITICAL RISK

ANALYSIS of markets, energy markets no less than others, often begins with a look at the fundamentals. In energy markets these analyses tend to change, move and require constant updating. International politics, on the other hand, while widely regarded as chronically fickle, have rarely required a deeper analysis of its fundamentals. The fundamentals of the global economy and politics have, for many decades, proved to be fairly stable. Yet for several years it has become widely appreciated that global politics are becoming increasingly unstable and that the values and conventions steering international relations in the past decades are under pressure. One can argue about the key causes, but one way of looking at it is that the set of main actors and their internal weighing has changed, making some feel constricted by the old space allocated to them within the system. Others have

shrunk and look for new means through which to attain their goals. This all leaves us with a global system in which competition and aggressive positioning is playing an increasingly important role. Nowhere has that been as clear as in the Middle East, where the US’ efforts to pivot away over the past decade has given rise to a number of conflicts-byproxy and raised traditional political risk for the oil market to levels not seen for long during 2019. But while much of the world politics is moving away from the established norms of the rules-based order, a new type of political risk rises in prevalence in the developed economies and climate change mitigation comes into focus. In this context, the EU’s strong identification with a rules-based international order and multilateralism – the core of its foundation – stands out and likely will lead to an escalated EU-US political decoupling – although

not necessarily all the way. But it also underlines to what extent this will be the EU’s trademark as a bloc in global trade and policy, to approach international problems with regulations and transparency to leverage considerable so-called soft power. All this could happen faster or slower, depending on November’s presidential elections in the US, but the overarching momentum has already been created. As many have pointed out, it has been in the making since it was becoming apparent that China was on its way to outgrow its position within the established geopolitical system. As that has happened, the US has started to feel more constrained then helped by its position in the system. This position has kept sucking it into conflicts where it has little national interest, while keeping it from being able to redistribute its resources to where it most needed. For markets, and European energy PAGE 37

MARKET ANALYSIS OIL MARKET REGULATIONS markets in particular, this creates a reality where companies are going to be squeezed between traditional political risk returning with renewed vigour and new emerging political risk resulting from the fragmentation between the well-regulated main economic blocs and actors in the northern hemisphere. Examples of the former are last year’s attacks on oil shipping, pipelines and production facilities in the Gulf. Examples of the latter are trade wars – of which there will be more – and game changing initiatives such as the ban on new combustion engine sales (for light transport) in the UK by 2035. For the oil market specifically, this means that traditional political risk will continue to be a factor mainly on the supply side, causing momentary uncertainty. Given the structural oversupply, it will however not be very likely to cause large and sustained price swings unless conflicts in the Middle East clearly get out of hand. The US signalled its continued pivot towards Asia last year with its lax response to the Saudi oil attacks, although it is not disengaging with the Gulf completely. Iraq, however, will be particularly important to watch as it looks set to be the main stage for continued US-Iranian proxy conflict. Iraq as an oil producer is also of such size that the oil system would struggle to manage without it, unless -ironically-

‘A new type of political risk rises in prevalence in the developed economies and climate change mitigation comes into focus’ Iran is allowed back to the market. Apart from that, with the OPEC+ locked into a vicious production cutting cycle and US shale still growing, the underlying global supply outlook for 2020-2021 at least is looking comfortably loose. Most risk for companies, therefore, will come from the new emerging political risk on the demand side. Climate is already a strong driver of regulation globally and will in the coming years force drastic changes on the energy markets not only in the EU, but throughout the developed world and beyond. In Europe, fuel qualities will be revisited, bio-feedstocks will see further regulatory change and bans on coal, or even combustion engines, will change the demand set-up in different parts of the union and in the UK. In some jurisdictions even dramatically so. The EU Green Deal and its goal of net zero carbon emissions 2050 will force member states to look closely at their 2030 targets, which being only a decade away will have to be very

measurable. This will force radical action, emphasising the differences in outlook throughout the union and therefore create a difficult business environment for the energy sector, throwing up many challenges with short lead times. In the full scope of its ambition, the EU will not be followed by many other actors globally, which will require carbon border taxes relatively soon, causing further challenges, not least to a liquids storage business relying to some part on serving global trade flows. There will, however, be plenty of opportunities. The energy sector and industries will require broader sets of fuels and feedstocks and there will be more frequent shifts in the demand for products and qualities. Those with blending capacities are likely to benefit. Flexible and agile organisations, with wide client networks and industry relations, could put tank companies in favourable positions to benefit from the demands of the transition – in Europe and elsewhere. For more information This article was written by Samuel Ciszuk, founding partner at ELS Analysis. Ciszuk will be speaking more about how energy markets are impacted by trade wars and climate regulations on the second day of the StocExpo conference.

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MARKET ANALYSIS OIL & GAS MARKETS

US ENERGY PRODUCTION TRANSFORMS GLOBAL TRADE Before January ended, two major events struck the oil market that speak volumes in how global trade has been transformed by US energy production PRICE risk in 2020 is now skewed to the downside as global economic growth and oil demand are under pressure from an outbreak of coronavirus. Oil futures surged in reaction to the US targeted killing of Iranian General Qasem Soleimani on January 2 but sold off less than a week later as Iran took steps to avoid war with the US, quickly unwinding an escalated geopolitical risk premium in global oil prices. Ten years earlier, global oil prices would have spiked $20 bbl in response to the attack instead of the $5.50 realised in early 2020, and the price increase would have been more enduring. Four months earlier, an attack on Saudi Arabia’s largest oil processing facility had a larger price impact amid lost supply and fear of war in the Middle East. A quick response by Saudi Arabia in meeting customer obligations alleviated market concerns, with oil prices retracing the advance in less than two weeks.

BRENT CRUDE FUTURES

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Abundant supply due chiefly to record high oil production in the US has adjusted the trajectory for global oil prices in response to geopolitical events that would previously have pushed oil prices over $100 bbl. For now, those days are in the history books with plenty of oil available in the market. What the world currently lacks is a strong sustained economic expansion, especially in manufacturing activity, which generates robust growth in oil demand when factories are humming and trucks, ships and rail are transporting goods to consumers. Early year signs of a modest global recovery in manufacturing are threatened however, as an outbreak of coronavirus in central China that has spread to more than two dozen countries disrupted travel, commerce and supply chain dynamics. More than 50 million people were under lockdown in Wuhan – the largest city in central China, and neighbouring districts in attempts to slow the spread of the virus. City streets were desolate. In late January, reports emerged indicating China’s oil demand plunged by three million bpd, which is equivalent to 23% of China’s estimated demand in 2019. Independent refiners slashed

output as distribution channels slowed or were shut and demand plummeted, backing up oil at crude import terminals. China depends on hundreds of trucks to move supply from its refineries daily, with travel restrictions further cutting diesel demand. Force majeures were declared, and trade reports emerged that Sinopec, Asia’s largest refiner, suspended oil purchases and was looking to resell as many as five cargoes. Year after year, expanding oil demand

in China has been the primary growth engine for global oil consumption, with the Organisation of Petroleum Exporting Countries (OPEC) in mid-January projecting a 330,000 bpd or 2.5% annual expansion in Chinese oil consumption in 2020 to 13.39 million bpd. New China demand accounted for 27% of OPEC’s growth forecast for this year before the coronavirus outbreak struck. At the time of writing, we are still in the early stages of the coronavirus, with its

PAGE 41

MARKET ANALYSIS OIL & GAS MARKETS effect on the global economy expected to be brief and transitory. Comparisons have been made to the SARS (Severe Acute Respiratory Syndrome) epidemic in 2003 that also emerged from China and endured for eight months before it was brought under control. Various estimates project the coronavirus will shave 250,000 bpd to 500,000 bpd off global oil demand this year. However, viruses can take uncertain turns, and China’s economy and demand for crude are far larger and more deeply integrated into world markets today than they were in 2003. The coronavirus reminds the world how interconnected countries and markets are, and the deleterious effects of lost demand this year could impinge on capital projects in the short-term. OPEC+ convened an emergency meeting in early February to restrict even more of its oil production to combat the demand destruction, yet Brent crude might still fall below $50 bbl in the coming weeks. OPEC has been operating in a very different world in recent years because of the rapid growth in US energy that led to a sharp increase in US exports of crude, oil products and liquefied natural gas, forcing the producer group to slow its output or face a global glut and weak prices. While not immune to the adverse effects of low oil prices, tight shale oil producers in the US operate on shorter 18 to 24-month production cycles, and hedge opportunistically when prices pop higher. US operators aggressively shorted the market in September and again in January to take advantage of the price spikes that helped to quickly press oil prices lower and were subsequently provided the economic benefit through hedging positions to continue pumping in a low price environment. This wherewithal is reflected in the price spread between Brent crude futures, the international crude market, and West Texas Intermediate futures which

US PROPRANE EXPORT DESTINATIONS

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‘Abundant supply due chiefly to record high oil production in the US has adjusted the trajectory for global oil prices in response to geopolitical events’ serves as the US crude benchmark. Brent crude expanded its price premium to WTI futures amid OPEC+ production cuts, but US crude production continued to grow. The favourable arbitrage supported growth in US crude exports, while expanding US oil output also lifted US product yield, leaving more barrels to be exported. Strong US export growth is also reflected for propane, which went to more than 50 countries over a six-month period in 2019. US capacity to export natural gas liquids, mostly propane, at about 1.575 million bpd will expand by 825,000 bpd this year. Most of the new capacity will come online in the third quarter. Another milestone was reached by Cheniere Energy, which exported its 1,000th cargo of LNG in late January, reaching the benchmark in four years. Ongoing infrastructure growth in the US further shores up US exports. In 2019, five crude pipeline projects were completed. Highlighted by Plains All American’s 670,000 bpd Cactus II Pipeline, an additional 1.14 million bpd in new pipeline capacity through expansion, pipeline conversion or new build moved into service. Five NGL pipelines also went into service in 2019 adding 1.695 million bpd of capacity. In 2020, construction started or will begin for eight more NGL pipeline projects and three crude pipeline projects. The Brent-WTI spread has narrowed sharply because of the coronavirus, as

global oil demand compresses. Both crude benchmarks moved into contango market structures, WTI late January and Brent early February, providing another market signal that illustrates abundant supply amid the current slowing demand environment. Even before the coronavirus outbreak, global supply was building at a quicker pace than demand. In the US, there’s too much refining capacity, with eight oil refineries on the market, while Shell closed on the sale of its Martinez refinery in California to PBF Energy on February 1. Shell’s sale was part of a broader realignment strategy, however less sophisticated refineries along the US East Coast that don’t enjoy cost-advantaged crude feedstocks are under margin pressure. With gasoline demand growth flatlining amid increasing vehicle efficiencies, refineries that don’t command strong local and regional markets are challenged. Expanding refining capacity globally adds to the competition. Refineries in China have increasingly exported excess gasoline supply to neighboring markets in Asia. Beijing has already acted with monetary stimulus to boost sagging economic growth now compounded by lost demand due to the coronavirus and could again act. Worries over the effect of the virus on the US economy has also spurred speculation the Federal Reserve would cut the key federal funds rate as many as two times in 2020 after the year started with no expectations for a rate cut. These reactionary measures could offset slowing oil demand to a degree, but until there is a strong sense that the coronavirus has been contained, the oil market will struggle during the first half of 2020, if not longer. For more information This article was written by Brian L Milne, energy editor, product manager, at DTN. www.dtn.com

WORLD OIL PRODUCTION, CONSUMPTION

MARKET ANALYSIS CHALLENGES IN THE 2020S

PREPARING FOR A DECADE OF CHANGE AS the sector enters a new decade, Channoil Consulting’s Chris Reveliotis, examines some of the key challenges facing the storage sector including shifting global trade patterns and the electrification of transport. STORAGE in the oil business is about more than just warehousing and logistics. The oil storage industry, and in particular the European one, is more dynamic and different because it intrinsically includes the operations of blending new products and trading them (both locally and internationally). The oil storage industry performs a hybrid role encompassing both traditional logistics and manufacturing functions. Seen in this dual role (manufacturing/trading hubs and logistics hubs), the oil storage sector is driven by two main sets of dynamics: 1. The trading dynamics of the international markets that it services through its blending, storage and subsequent import/export activities. 2. The changes in the demand of the internal European market it services through its purely logistics function. As we enter a new decade, the sector is facing formidable challenges, some of which may develop into existential threats. Disrupting changes are present in both trading dynamics and demand, affecting the underlying parameters that have shaped the sector for the past decades and have underpinned its profitability and growth. Some of these are already happening and will continue to impact in the next ten years. Others are just beginning to emerge but may prove existential. INTERNATIONAL TRADING PATTERNS ARE SHIFTING In its international trading function and blending capacity, the European storage industry is servicing the need of balancing the supply/demand imbalances of the European oil refining markets through blending and the subsequent import/ export trade. Europe has resolved its gasoline surplus by exporting to the US and West Africa, and a short jet and middle distillate position by importing mostly from Middle East and Russia respectively. These trades were providing the main storage demand and throughput volumes that were sustaining the economics of major hubs of the storage sector and its expansion to its current size over the years.

PAGE 44

This historical equilibrium has been disrupted by the huge growth of US oil and gas production. As a result, two changes are already at play and need to be emphasised: Declining US gasoline import market The availability of US crude production combined with high US refinery utilisation has decreased the volumes of the trade to the US and there are scenarios whereby the US may become self-sufficient in gasoline within the next three years. The West African gasoline markets have been another major trade sustaining the European storage industry. So far, these markets have absorbed a big part of the declining US volumes, however it is unlikely that further drastic reduction of the US trade can be accommodated in the same way. Furthermore, looking over the new decade horizon, there are indications that these countries are moving towards developing their local storage and blending industry and even refining base (Nigeria). LPG imports displacing naphtha in chemical feedstocks The LPG imports have displaced naphtha in the chemical feedstock mix. According to CEFIC and ICIS, naphtha’s share in the mix has declined from 72% in 2010 to

58% in 2018, whilst LPG has increased from 13% to 25% (see figure 1). It should be noted that LPG storage capacity is expanding in Europe, so this trend is bound to continue. Excess naphtha displacement is pushing more volumes into the gasoline pool at the refining level, but if there is no market for the gasoline, then margin pressures may result in reduced refining utilisation rates and reduced storage throughput. If these trends continue in this new decade, there will be a need for a fundamental repositioning of the role of the European storage industry in global trade. ELECTRIFICATION OF TRANSPORT Looking at the unfolding dynamics in its internal European markets, the biggest one undoubtedly is the electrification of transport. The centuries-old traditional barriers between the two great energy industries – the electricity utilities sector and the oil sector – are being dismantled and the oil industry seems to be on the losing side. Europe is at the forefront of this global change. On the back of climate change pressure, Europe has led the energy transition with powerful policy initiatives. The official European policy of having 20% of the electricity demand provided by renewable sources by 2020 (the ‘20/20/20 policy’) led to the creation

MARKET ANALYSIS CHALLENGES IN THE 2020S of a booming renewable energy sector, hugely disrupting and restructuring the European utility sector in the process. The advent of the electric car and the mobilisation of the European and global automotive industry around this objective is now bringing the energy transition to the heart of the oil sector and the European storage industry.

sell (Tesla and Nissan Leaf being the prominent brands) and effectively zero marketing push. 2020 finds us with most major car manufacturers having introduced new electric car models. Even more importantly, by 2022 – 2025, all manufacturers have announced that they will have portfolios of new electric models ranging from three to ten new cars each.

stall, and people may dispose of older, more inefficient and fuel consuming cars faster. Such a development could drive the total fleet growth to zero, or even reverse it, bringing the peak demand year much closer to today.

This change may prove existential for the sector. Consequently, the key questions become:

This transition is further accelerated by governments and major cities rolling out the infrastructure required for charging and offering a range of tax benefits and incentives for electric cars (see figure 3). Two very important incentives to point out are the abolition of company car benefit tax for electric cars and companies’ policies to switch their car fleets – leased or hired – to zero emissions.

So, the sector may still have a decade to plan its adjustment. Or it may have much less. Predictions suggest that past the point of peak demand, volumes will decline very fast. The storage industry should not become complacent with a false sense of time security. Looking across the fence to the European utility sector’s recent travails may provide a good lesson of what it should avoid. At the start of the century, the utility sector ignored the signs of changing trends and the advent of the renewable energy generation, despite the fact it was backed by the 20/20/20 policy. It also ignored the capital markets, who provided ample equity and bank loans to the nascent sector with amazing speed, financing its growth. Instead it continued business as usual, building CCGT plants and growing the traditional electricity generation base. Then they compounded their mistake by ignoring the second phase of consolidation that followed the first wave of construction and allowed those assets to be acquired by pensions funds, infrastructure funds and insurance companies. It took only ten years and the loss of less than the 20% demand policy target to land this sector in deep trouble, forcing massive write-offs, collapsing share prices and valuations and deep restructuring of its companies.

• How big a trend is it? • How fast is it evolving? Looking at new passenger car data between 2015 and 2018 (see figure 2), the importance of the trend they represent could be easily dismissed as insignificant. The number of new car licenses in 2018 was 15.2 million, which means that the 2% share of electric cars sold was only 304,000 cars. The European passenger car fleet that underpins the combined gasoline and diesel demand in 2017 was 268 million cars (according to Eurostat). However, we believe this acceleration of the electric car penetration from 1% to 2% of the number of new cars produced in the last two years is very important. It reflects the changing dynamics of the car industry as it switches production from fuel engine cars to full electric. This 2% penetration in 2018 was achieved with only a handful of car manufacturers having an electric model available to

So, 2020 and 2025 are critical years to monitor in the transition to electric cars, for if the car industry delivers on its published timetable, electric car manufacturing capacity will increase exponentially. Assuming the overall car fleet continues to grow at the average past growth rate, transport fuels demand for passenger cars will not peak before 2029-30. But there are risks that may disrupt this and bring the peak year much closer to the present – even before 2025. A key factor to monitor is the assumed growth rate of the total fleet. Driven by policy from governments and major cities (e.g. banning certain cars from city centres), new petrol car sales may

TIMING IS CRITICAL

In the last couple of decades, the attractiveness of storage assets increased, especially with the advent of quantitative easing (QE) and low to negative interest rates on bonds. Institutional investors moved fast and accessed the sector with relative ease. But like utility assets, oil assets are not easy to turn around fast and exit costs are high. So, the time to engage is now. Leaving the strategic review and actions for later, only increases the risk of the old adage confronting the sector: ‘How did you go bankrupt?’, ‘Slowly, and then suddenly.’ For more information This article was written by Chris Reveliotis for Channoil Consulting. www.channoil.com

01 Chemical industry raw material. Source: CEFIC and ICIS 02 Electric car EU tax benefits and incentives. Source: ACEA Tax Guide 2019

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MARKET ANALYSIS IMO 2020

THE DEATH AND TRANSFORMATION OF FUEL OIL The global fuel oil market is still adapting to the momentous changes forced upon it by the IMO 2020 spec change.

JBC ENERGY expects1, as it did in 2017, that fuel oil will remain the primary bunker fuel at least throughout the new decade. That said, the two million b/d shift from high sulphur fuel oil (HSFO) to 0.5% very low sulphur fuel oil (VLSFO) completed in recent weeks has irreversibly fragmented the fuel oil market. This fragmentation is transforming business dynamics by ushering in a new three tier fuel oil market consisting of VLSFO, High Sulphur Straight Run fuel oil (HSSR), and cracked high sulphur fuel oil (cracked HSFO).

run HSFO is blended together for use as a fuel for scrubber-fitted ships; and 3) sophisticated refineries, where HSFO (straight-run and/or cracked) is either blended with crude to create a cheaper synthetic heavy-sour crude, or used as a non-crude feedstock to fill secondary units. It would then be converted into higher value products such as gasoil and gasoline via coking and cracking processes.

was Singapore. Global VLCC fixtures dropped in 2019 to just four voyages, down from 19 in the prior year and 24 in 2017, according to data from shipbroker McQuilling. In a fragmented HSFO world, the need for 250,000 tonne stems of fuel oil is simply no longer there. Instead the trend is towards shipping smaller volumes of fuel oil directly to end users, be they utilities in Saudi Arabia or complex refiners on the Gulf Coast.

The fact that we are now past the most acute phase of HSFO-to-VLSFO bunker fuel transition, and the HSFO market structure is not only not in deep contango, but actually backwardated, (throughout the whole of 2020 no less) is a clear sign of this fuel oil fragmentation.

The challenge for storage and terminal owners is that, due to a two+ million b/d y-o-y loss in HSFO bunker demand, the various shipments of HSFO molecules from refiners across the world are no longer being sent to the major hubs where they would have been separated, commingled, blended, or stored as required for the different end uses (typically bunker or utility fuel) and then transhipped.

The industry can no longer talk about a unified fuel oil market even within the HSFO sub market. This is because HSFO demand is now split between three competing end-user sectors, namely: 1) utilities, where mostly cracked HSFO is burned for power generation; 2) bunkering, where cracked and straight

Evidence for this can be seen in the rapid decline in global fuel oil bookings of cargo sizes above 250,000 tonnes on VLCCs, the largest trading tanker class. A full VLCC cargo of fuel oil is almost always too big to be used by any single end user and so needs to be unbundled at a major terminal, which historically

Nevertheless, Singapore remains the worldâ&#x20AC;&#x2122;s largest bunkering hub by a wide margin and so needs to ensure that it has ample supplies of bunker fuel to hand. But a look at bunker balances shows that the fragmentation of fuel oil has left its mark here too. Asia is not as short in VLSFO as it was in HSFO, due in large part to China. Up until this year, China used to import the vast majority of its HSFO bunker fuel needs from Singapore, which in turn imported HSFO components from the Atlantic Basin in liquid bulk volumes on large tankers (VLCCs and Suezmaxes). But this trade will substantially diminish this year as China begins supplying its own ports with domestically produced VLSFO, following a key tax change effective from the start of February 2020. Given Chinaâ&#x20AC;&#x2122;s

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MARKET ANALYSIS IMO 2020 components, and more frequent bouts of backwardation, it is not all bad news. The upside for blenders is that the bigger VLSFO market will be more lucrative given its higher value, which may translate into a higher margin. But holding bigger volumes of higher value components will also put more value at risk, making a good and steady line of credit more essential than ever. The winds of change have been blowing through the wider fuel oil industry for some time now and it should not come as a surprise that fuel oil trading operations have been slimming down. Fuel oil trading volumes have been on the decline for years and the loss in liquidity has been accompanied by reductions in fuel oil trading staff, the outright dissolution of some fuel oil desks, as well as some highlevel consolidation. enormous size, Chinese self-sufficiency in VLSFO bunker fuel has significant ramifications for the regional Asian bunker fuel balance. In fact, we see the Asian VLSFO deficit in 2020 at around 420,000 b/d, as opposed to an HSFO deficit of over one million b/d in 2019. Moreover, the smaller VLSFO deficit will be serviced by smaller ships explicitly targeting the bunker segment. Given the different quality characteristics and higher value of the low sulphur fuel, blenders will no longer be able to blend surplus fuel oil volumes into cargoes for export into the wider Asian inland fuel oil market, as was regularly done in the past with HSFO. Blending high sulphur fuel oil components into bunker fuel to service the remaining global HSFO bunker demand of an estimated one million b/d has also become more challenging given lower availability of HSSR than in the past, and higher availability of low quality cracked HSFO. Tighter availability of HSSR is the natural result of steeper discounts for HSFO that are coming on the back of the loss of two million b/d of HSFO bunker demand. The deeper discounts make HSSR (and occasionally cracked HSFO) an attractive secondary feedstock to run in the world’s most complex refinery setups, particularly in an environment where residue-rich sulphurous crudes are comparatively expensive on the back of ongoing OPEC+ production cuts and geopolitical strife (e.g. in Venezuela or Iran). This results in increasing volumes of fuel oil flowing from the big producers to individual refiners, often via intermediary traders, on smaller Panamax (50 kt) and Aframax (70-100 kt) vessels, circumventing the big hubs. According to company websites, two major trading houses, Vitol and Mercuria, confirmed that a respective 50% and 40% of their fuel oil volumes

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‘The rise of VLSFO as the premier post-IMO bunker fuel of choice is opening up new and exciting opportunities for storage & blending operators’ are supplied as a secondary feedstock for refiners. The stronger pull on HSFO as a secondary feedstock also limits the supply of HSFO more generally, which, when combined with the ongoing incentive for refiners to reduce HSFO yields, results in a tight market. And a tighter market, of course, is more prone to backwardation, the scourge of the storage industry. While blenders will have to make do with a smaller market for HSFO, tougher access to high-value blend

But while fuel oil’s role as a major commodity may be dead, the fragmentation into smaller niche markets, each with a dedicated infrastructure, will ensure that fuel oil lives on – albeit in a highly specialised manner. The role of HSFO as a secondary feedstock is now more important than ever to a small subset of the world’s top refineries, while the rise of VLSFO as the premier post-IMO bunker fuel of choice is opening up new and exciting opportunities for storage and blending operators. References 1 Solving the 2020 Bunker Fuel Mix Conundrum, Tank Storage Magazine, February/March 2017 For more information This article was written by Eugene Lindell, senior consultant at JBC Energy. www.jbcenergy.com.

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MARKET ANALYSIS EUROPEAN TANK STORAGE

STORAGE: LINKING EUROPE’S SUPPLY CHAIN

THE FEDERATION of European Tank Storage Associations (FETSA), represents European national tank storage associations and independent private storage companies operating bulk liquid storage terminals. In total, FETSA represents more than 140 companies operating 692 terminals across Europe. But what do these figures actually mean in concrete terms? We believe that when we dig deeper, these figures show that our sector actually energises the EU economy. This is because the terminals run by the companies represented through FETSA, and its national associations, provide an essential interface between sea, road, rail, inland waterway and pipeline logistics. They are a critical component in the supply chain for liquid energy sources, chemicals, animal feeds and fats, oils and other substances for human consumption. They help to balance out supply and demand to ensure everybody has critical liquids at the time they need them, and in the quantity required. What is more, many strategic terminals are designated as Critical National Infrastructure by the EU and national governments due to their importance in providing energy to industrial, transport and defence markets. Our storage

5,337

Investment next 5 years (unit: million EUR)

692

Number of terminals

1,035,528,218

6,742,174

Together with tankterminals.com, we have recently reviewed key metrics within our sector to showcase data relating to terminals, transport modes, storage capacity, product mix, workers and pipeline data. These figures are composed of the national figures submitted by our ‘full’ (national association) members as well as data from our ‘associate’ (company) members based in countries where no national association exists. Overall, in 2018, FETSA terminals have moved (both in and out) 143% of European oil consumption. This demonstrates the importance of our sector in energy and chemical logistics. It shows again how critical tank storage is to the wider economy. Looking to the future, whilst liquid products will evolve to meet our climate obligations, the importance and function of liquid storage within European supply chains will remain constant.

15,334

Number of FTE (including long term subcontrators)

117,706,596

Storage capacity 31 December 2018 (unit: m3)

99,766,362 Oils & Fuels 11,942,562 Chemicals 5,997,672 Other

42,123

Number of seagoing vessels per year

Number of trucks per year

509,074

76,798

25,632,109,784

Number of barges per year

Number of wagons per year Pipeline traffic (unit: tonne per km)

INVESTMENT IN THE ENERGY TRANSITION FETSA members are ready to support the EU and national governments in the energy transition by ensuring that existing infrastructure can be used for both traditional and alternative fuel sources; by adapting infrastructure to accommodate alternative liquids and gases; by maintaining and developing supply chain efficiency; and by storing reserves for energy resilience. Of course, this requires capex but our very high level of investments in Europe reflects our commitment to achieving EU climate goals. To be precise our members expect to invest in total €5.3 billion in new infrastructure, infrastructure renewal and so on over the next five years. This a huge figure and it will help to ensure that our infrastructure remains safe, innovative, secure and can store both existing as well as new liquid products as we go through the energy transition. This figure also shows that the tank storage industry is capital intensive. Notably because it requires expensive infrastructure, cutting edge technology and highly trained specialised personnel in order to meet ongoing safety and environmental standards. €5.3 billion is a huge amount being spent by our sector over a timeframe that is characterised by uncertainty, transition and potential disruption. This is why we at FETSA are working with European authorities and government representatives to ensure a sustainable, innovative and climate neutral future for the new (and next) generation of liquid/ synthetic fuels.

(Collected September 2019)

Yearly throughput: in + out (unit: tonne)

capacity includes strategic reserves held for emergencies and supply disruptions. This is a little-known fact of critical importance to the economy in times of disruption such as strikes, weather related problems such as droughts, and conflict (that could impact both downstream usage and the upstream fuel supply chain).

For more information This article was written by Ravi Bhatiani, executive director at FETSA. www.fetsa.eu

01 Credit: FETSA in cooperation with tankterminals.com by Insights Global

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PROFILE HES BOTLEK TANK TERMINAL

GEARED FOR FUTURE GROWTH In the last two years, HES Botlek Tank Terminal has more than doubled its storage capacity. General manager Coen Janssen reveals more about the company’s projected growth strategy amid a changing energy environment 01

HES BOTLEK Tank Terminal is strengthening its role in a changing energy environment to serve growing product markets as a result of the energy transition. Nestled in the heart of the Port of Rotterdam’s chemical cluster – the Botlek – the terminal offers flexible storage for clean petroleum products and renewable fuels such as biodiesel. In the last two years, the facility has more than doubled its storage capacity with highly automated and efficient tankage, allowing its customers to fully maximise the utilisation of its capacity. In 2017, the terminal more than doubled its capacity to 490,000 m3 with the addition of 14 flexible storage tanks for clean petroleum products. The tanks are equipped with internal floating roofs, sump suction (no deadstock) and allow customers to switch products with very limited notice. To accommodate a new customer, the terminal also added three barge berths, giving customers access to two positions for seagoing vessels and seven positions for barges. In 2019, the terminal commissioned an additional six tanks with a total capacity of 20,000 m3 for biodiesel, bringing

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‘We have grown our leading position by adding significant amounts of storage capacity for clean petroleum products & renewable fuels’ total storage capacity at the terminal to 510,000 m3. All these investments have been backed by long-term storage contracts with customers. In an interview with Tank Storage Magazine Coen Janssen, general manager, explains how the terminal’s comprehensive understanding of its regional market dynamics is key to fully optimise performance and operations at the facility. ‘Capitalising on our strategic location in the heart of the Port of Rotterdam, our strong industry and customer links, we have grown our leading position by adding significant amounts of storage capacity for clean petroleum products and renewable fuels. ‘The terminal has maintained a strong safety performance track record since the start of operations in 2011. The HES Botlek Tank Terminal was the first

terminal in the Netherlands to be awarded the ISO 28001 certification, making it one of the most environmentally friendly storage facilities in the country. ‘Safety is paramount to our operations. We operate safe, or we don’t operate. However, the environment is also an important stakeholder for us and we minimise our impact on the environment by investing in equipment that, for example, minimises emissions. ‘A pipeline connection with our neighbours to use their residual heat for our tank heating is just one example. We are committed to continue looking for these long-term sustainable relationships with our neighbours as they are key to the success of the terminal.

PROFILE HES BOTLEK TANK TERMINAL

FUTURE DEVELOPMENT ‘We serve the European petroleum and chemical industry and a thorough understanding of these markets is essential in order to optimise the performance of our operations.

Janssen sees the opportunity that this energy transition provides and explains that HES Botlek Tank Terminal is wellpositioned to offer specific solutions that drive this transition.

‘In these markets, we still see significant imbalances between supply and demand supporting a potential expansion of HES Botlek Tank Terminal,’ Janssen explains. The terminal has land available that can accommodate an extra 120,000 m3 of storage capacity and the environmental permit for this expansion has already been obtained, which reduces the time to market by at least 12 months. The permit allows HES Botlek Tank Terminal to use the capacity for products such as gasoline (components), diesel, jet fuel, renewable products such as ethanol and biodiesel, methanol as well as vegetable oils.

volumes have increased significantly in recent years at HES Botlek Tank Terminal and this has been partly driven by our efficient rail (un)load infrastructure. Currently we (un)load a block train with biodiesel in less than eight hours.’

‘Discussions with potential blue-chip customers are ongoing,’ Janssen says.

STORAGE FOR THE ENERGY TRANSITION

‘Next to the potential storage capacity expansion, we also have plans to expand our rail loading capacity. Biodiesel

The energy transition is part of an essential shift towards new energies aimed at replacing traditional fossil fuels

in a bid to reduce CO2 emissions and improve the health of the planet.

‘It is still a very good business landscape to operate in. Legislation governing us is becoming stricter, and there is, of course, still competition. In the longterm the energy transition might be a challenge for those who don’t adapt to it, but it is also an opportunity to move ahead of the competition and offer something different. ‘The energy transition is here to stay and that is an important and positive reality. In the coming decade we foresee that the mixture of transportation fuels will further widen. We also anticipate that the demand for biodiesel will continue to grow, but also that circular products such as naphtha and methanol that are derived from, for instance, non-recycled waste, will also require storage capacity. ‘As a result, we are positioning ourselves to serve these markets. The fact that we are located in a deep draft hub location, have access to efficient storage capacity with several tank sizes, which are supported by significant jetty capacity, means that our position in a changing environment will remain strong.’

01 The terminal offers tailored services 02 General manager Coen Janssen 03 Significant jetty capacity with deep-water berths 04 Providing safe and reliable operations 05 510,000 m3 storage capacity and land available for an extra 120,000 m3

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MARKET ANALYSIS ENERGY TRANSITION

SUPPORTING THE ENERGY EVOLUTION The UK’s bulk liquid storage sector knowledge, innovation & evolutionary capabilities are fundamental to ensuring a viable and successful energy transition. Tank Storage Association’s Peter Davidson reports.

THE UK has set ambitious targets to reduce emissions. Under the Climate Change Act 2008 and the fifth carbon budget, covering 2028-32, the UK government has set a target for a 57% reduction in greenhouse gas emissions (GHGs) by 2030 against a 1990 baseline. By 2050, all GHG emissions are to be brought to net zero from 1990 levels. In practical terms, this means changes in energy generation, industrial processes, transport, buildings and heat. The Tank Storage Association has recently published a new report ‘Enabling the energy transition – The role of the bulk liquid storage sector’. The report explores the role and potential of the UK’s bulk liquid storage sector, and associated logistics, in the energy transition and in supporting the achievement of the UK’s decarbonisation targets. The UK’s bulk liquid storage sector supports growth and prosperity by moving, storing and blending the modern

PAGE 56

products, feeds and chemicals that are integral to citizens’ daily lives. Similarly, and most crucially, the sector will have a key role to play in unlocking future opportunities. Undoubtedly, reducing emissions will require partnership, significant investment and coordinated efforts by government, supply chains, businesses, consumers and other stakeholders alike. Meeting the UK’s future ambitions will also require a broad mix of solutions. As essential partners in the energy transition, through our report, we emphasise our commitment to the innovation and evolution that will be necessary to succeed going forward. The report also identifies the barriers to be overcome and the opportunities that will unlock solutions for change. THE ENERGY FUTURE FOR TRANSPORT In enabling the energy transition, the report highlights the key role that bulk liquid storage will play by

supporting access to traditional and suitable energy alternatives as well as providing the flexibility needed to integrate these alternatives. For example, the transport sector is currently the largest energy-consuming sector in the UK, accounting for around 39.9% of final energy consumption1, followed by residential, industrial, and commercial users. And, energy consumption in both transportation and industry are widely dominated by oil. International bunkers for aviation and maritime transport also make up a large part of domestic oil consumption but are counted as exports. The transport energy system’s strategic flexibility is heavily supported by the bulk liquid storage sector and associated supply chain. For example, net imports of middle distillates, such as diesel and aviation fuel, have continued to increase steadily due to a misalignment between UK production and domestic demand. This means that around half of the UK’s demand for diesel and over 60% of aviation fuel demand

MARKET ANALYSIS ENERGY TRANSITION are currently met by imports2, with the bulk liquid storage sector providing the necessary infrastructure and staging area for distribution throughout the entire supply chain. While bulk liquid storage terminals in the UK handle a variety of products, each with their own distinct supply chain footprints, fuels and hydrocarbon derivatives currently account for more than 65% of tonnage throughput . In the context of transport-focused decarbonisation measures, the UK government has brought forward a number of initiatives, including plans to end the sales of conventional cars and vans by 2040 and an ambition for most cars and vans to be zero emission by 2050. An interim goal for at least 50% – and as many as 70% – of new car sales to be ultra-low emission by 2030 has also been set out as part of the government’s Road to Zero Strategy4 to facilitate a roll-out of low-carbon alternatives. This will require careful advance planning and management to ensure the supply chain can be maintained in the interim and to minimise change in the consumer experience. Indeed, meeting varying demand for fuels, both in terms of volume and product types, while maintaining the sustainability of a hydrocarbon derivative supply chain, which feeds the general manufacturing and chemical industries, represents an opportunity as much as a challenge for the bulk liquid storage sector. Looking ahead, it is widely accepted that future transport solutions will encompass a wide range of technologies and that lowcarbon liquid fuels will play an essential role for sectors that have limitations in using electricity directly, such as longdistance, heavy-duty transport, aviation, and maritime transport as well as the petrochemical sector. ENERGY ALTERNATIVES It is also clear that energy alternatives, new or developing, will have their own characteristics as well as advantages and disadvantages. Managing both traditional and alternative energy sources will require facility enhancements and a flexible, robust bulk liquid storage sector and associated logistics. Businesses will need to accommodate the wide range of technologies that may be needed in the future to meet the UK’s decarbonisation targets. Crucially, our sector already has some insight into what a changing landscape might mean for its infrastructure and it is undoubtedly well positioned to meet the challenges ahead. Initiatives such as the Renewable Transport Fuels Obligation (RTFO), requiring

an increasing share of biofuel in road transport fuels, and the new International Maritime Organisation (IMO) 2020 regulation are clear examples of the pivotal role that our sector plays in this arena and of the impact that it will have in the future. As we move towards the next phase of the transition, the bulk liquid storage sector will also have to help balance strains on demand for legacy liquids in a declining market while addressing the availability of current infrastructure against a growing demand for alternatives. This will require conversion of existing assets, space and significant investment at a time of great pressure on margins. Furthermore, with demand for petrochemicals expected to rise, maintaining the sustainability of hydrocarbon derivative supply chains feeding the general manufacturing and chemical industries, will require responsiveness and flexibility at a time of great change.

‘The storage sector will have to help balance strains on demand for legacy liquids while addressing the availability of current infrastructure against a growing demand for alternatives’ In the context of heat decarbonisation, the UK government has recorded its commitment to fully decarbonise heating in homes and businesses by 2050, bringing new challenges to the fore. In 2018, for example, the residential sector in the UK was responsible for about 15%5 of total GHG emissions, with consumption dominated by gas. 6% of heat demand was met from renewables6, and less than 2% from district heating. Fuel oil is also used to heat homes and businesses that are ‘off-grid’ and not connected to the gas transmission network. Suppliers of domestic home heating fuels can also play a significant part in the energy transition and a low-carbon future by providing heating oil blended with sustainable biofuel for homes across the country. For the bulk liquid storage sector, this will mean infrastructure upgrades, such as new tankage, loading arms and blending facilities. THE FUTURE From investing in latest technology and innovations, to employing highly trained,

specialised personnel in order to meet ongoing safety and environmental standards, the bulk liquid storage sector and associated supply chain are capital intensive. For that reason, the Tank Storage Association’s future vision, along with stressing the importance of collaboration with key partners and the UK government in unlocking the sector’s potential, outlines a number of recommendations, including: • Ensuring the energy transition advances in parallel with required changes in bulk liquid infrastructure by maintaining the benefits of a safe and resilient bulk liquid storage sector and associated supply chain. • Working together, in partnership with industry, to seize opportunities for a responsive, flexible and robust bulk liquid supply sector. • Setting clearly defined transition paths and realistic timelines to enable a stable landscape for long-term investment and avoid delay caused by the lack of new transitional national infrastructure. • Ensuring that policies are coherent and supportive of the broad range of solutions necessary to succeed. • Empowering industry by facilitating dialogue, co-operation and knowledge transfer in the area of safety, in the context of alternative energy solutions. As we move towards the next phase of the transition, the Tank Storage Association is clear in its call to government to capitalise on the knowledge, innovation and evolutionary capabilities of UK’s bulk liquid storage sector and associated logistics. References 1 BEIS ‘Energy Consumption in the United Kingdom’, 2018 2 BEIS, ‘Digest of UK Energy Statistics (DUKES)’ 3 Tank Storage Association, ‘Statistical Review 2019’ 4 Department for Transport, ‘Reducing Emissions from Road Transport: The Road to Zero Strategy’, 2018 5 BEIS, ‘2018 UK Greenhouse Gas Emissions, Provisional Figures’ 6 BEIS, ‘Digest of UK Energy Statistics (DUKES)’ For more information This article was written by Peter Davidson, executive director at Tank Storage Association. For a copy of the ‘Enabling the energy transition – The role of the bulk liquid storage sector’ visit www.tankstorage.org.uk.

PAGE 57

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PROFILE EURO TANK TERMINAL

AN INNOVATIVE SPIRIT As the winner of the Global Tank Storage Terminal Efficiency Award, VTTI’s Euro Tank Terminal is a recognised industry leader in ensuring efficient terminal operations whilst tapping into the needs of its customers and looking to future market innovations. General manager Jaap Koomen reveals more...

RUNNING a terminal as safely and as efficiently as possible is one of the fundamental business principles for any storage operator. VTTI’s Euro Tank Terminal, located in the heart of the Port of Rotterdam, has been recognised for achieving maximum efficiency in its terminal operations. Its focus on quick vessel and railcar turnaround times, developing and operating a facility that meets the specific requirements of its customers, and investing in its workforce secured it the 2019 Global Tank Storage Awards Terminal Efficiency Award. The terminal’s efficiency is reflected in its statistics. It can easily handle 500 vessels, more than 2,300 barges, and over 1,100 rail cars per annum and VLCC’s can be loaded at rates of 6,000 m3/h. In an interview with Tank Storage Magazine, general manager Jaap Koomen explains how important people are in ensuring a terminal’s success. ‘ETT has an enormously motivated staff and a strong focus on the VTTI culture. The people at ETT understand their role

PAGE 60

and how to drive efficiency and they make the effort to understand and look to the future with our customers. That is such an important part of successfully running an efficient terminal – to understand the customer and know how they talk and think. You can only deliver high service when you understand your customer.

‘Efficiency is about experience and people, which makes the difference. When people see the importance of what they do and the impact that their work has on the wider company then you get the best of their abilities. People are the key to success and that ties in with the company’s culture of collective leadership, creative ownership and dynamic strategy.’

PROFILE EURO TANK TERMINAL ‘You get more grades of the same product group and as a terminal you need to be able to segment more effectively as you want to avoid contamination of different product specifications. ‘You need to ensure that your line system is organised well and make sure that you have effective segmentation on the lines to mitigate the risk of contamination, which is a significant concern for operators and customers.’

General manager Jaap Koomen

Equally important is a comprehensive safety culture that imbues a solid safety mindset and behaviour. Koomen says that the company’s life-saving rules and its strong safety culture further enhances the effective running and operations of the terminal. DIVERSE OPERATIONS The terminal specialises in the handling of fuel oil and middle distillates, including fuel oil, gasoil and jet fuel, with more than 1.3 million m3 of capacity spread across 32 tanks. Koomen explains that each product has different trade and market dynamics and that as a result, greater operational flexibility is required, utilising the latest innovations. The recent implementation of IMO 2020 – the marine fuel regulation reducing the amount of sulphur from 3.5% to 0.5% – has resulted in a more complex range of fuel oil products with different grades.

Looking at the current market dynamics of the products the terminal handles and stores, Koomen says that fuel and gasoil are relatively stable markets with established supply routes and demand centres. He notes that more logistics infrastructure is needed for jet fuel, which still has some room to grow. REMAINING RELEVANT ‘Terminals need to constantly reinvent themselves to remain relevant and competitive,’ Koomen explains. And one of the areas of focus for the terminal going forward is to embrace the latest technology and innovations. ‘ETT is always open to innovation. ‘I am always interested in the latest cutting-edge technology and seeing how concepts such as big data can be used in the industry, particularly for complex operational processes, and can provide forecast models for maintenance and scheduling.

This is partly due to the effectiveness of its distributed control system (DCS), which visualises every pump and valve across the facility. The planning algorithm calculates the best route for products to minimise downtime and associated costs for customers. Its dropboard jetty planning system efficiently plans and manages all jetty activities to reduce demurrage.

‘It is also interesting to see what our customers do with technology.’

Looking ahead, Koomen’s ambitions are to focus on the flourishing easy chemical markets as well as growing methanol and biofuels infrastructure.

The company’s focus on technological innovation has resulted in a smooth and accurate order processing, constantly operational pumps, a significant reduction in downtime as well as preventative maintenance.

‘Our strength is in our flexibility and efficiency which we achieve from having big tanks with a variety of pumps and lines. But we must not miss the opportunity to deal with smaller and more complex processes.’

PAGE 61

MARKET ANALYSIS STORAGE IN EUROPE

PREPARING FOR AN UNCERTAIN FUTURE As oil markets balance between a series of evolving challenges including the coronavirus, Brexit, IMO 2020 and the ongoing energy transition, storage operators are continuing to invest in preparation for an unknown future. Amy Mclellan reports.

AT THE time of writing, analysts, traders and investors around the world were on a crash course in epidemiology. The coronavirus epidemic has led to a sudden contraction in Chinese oil demand and a sharp drop in oil prices. The public health emergency is a timely reminder of how suddenly market dynamics can shift, not to mention the extent to which China’s vast economy buoys economic activity around the world. In early February, oil prices tumbled as analysts hurriedly updated models to reflect the fast-changing crisis, which saw the introduction of strict travel restrictions and factories shuttered across China in a bid to contain the outbreak. Hubei province, the epicentre of the epidemic, is home to 58 million people and responsible for 4.5% of Chinese GDP. Altogether the affected provinces account for around two-thirds of Chinese oil demand.

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‘As the world’s largest crude consumer, any reduction in Chinese demand is bearish for global oil prices,’ says John Morley, associate editorial director, EMEA oil at SP Global Platts. ‘In recent days we have seen drops in crude futures prices, physical crude differentials – particularly for grades purchased in large quantities by Chinese refiners – and a weakening paper market structure.’ Brokers report they are already seeing enquiries as a result of the reduced crude demand. ‘Coronavirus is already having an impact,’ explains Krien van Beek, founder of RVB Tank Storage Solutions. ‘We are having crude storage enquiries and beyond that there’s the floating storage market. It’s amazing how rapidly we see the consequences of the disruption in China.’ By mid-February, with more than 1,100 deaths and at least 45,000 people infected, there were growing worries about disruption to global manufacturing

supply chains and international trade. Citigroup has revised its average Brent price for Q1 to $54 a barrel, down by a massive $15 from the previous forecast of $69. The EIA now expects oil prices to remain below $60 through H1 2020 and the Saudis are urging the OPEC+ coalition to agree new cuts to ‘put a floor under prices. ‘The reaction to the coronavirus is already causing widespread losses in economic activity and oil demand,’ says Amrita Sen, chief oil analyst of Energy Aspects, which has reduced its Q1 Chinese oil demand estimate by 700,000 bpd. And this drag on oil prices could continue for a while yet. ‘In a contest between the knowns and the unknowns, it is usually the latter that wins, especially when there is a fear factor involved,’ says Sen. ‘That is exactly what is going on in the oil market today and prices are likely to continue declining in the short term.

MARKET ANALYSIS STORAGE IN EUROPE Once the dust settles and fundamentals reassert themselves – assuming that the virus is not catastrophic – the upside to oil prices and spreads will be substantial.’ She points out that the Chinese are likely to act to prevent GDP growth from falling below 6% on an annual basis, so to compensate for lower growth in Q1 and possibly Q2, there could be stimulus to boost Q3 output. ‘This means the swing higher in demand in H2 2020 is likely to be very pronounced,’ says Sen. Gas demand is also impacted, with LNG bearing the brunt of the shock, according to Wood Mackenzie research director Robert Sims, who estimated ‘the downside impact to Chinese LNG demand as between 2.6 million tonnes (Mt) ‘best case’ with recovery by April and 6.3 Mt in a more ‘prolonged case’ with a slower return to normal’. Some companies have already declared force majeure on international contracts. BREXIT: THE SAGA CONTINUES For now, however, the general mood is one of uncertainty. Even before coronavirus, there were fears for the health of the global economy as the world’s great powers – the US, China and Russia – flexed their muscles as tit-for-tat tweets, tariffs and sanctions raised tensions. ‘The greater the amount of commerce you have, the more ships that are sailing and planes that are flying, the greater the demand for liquid fuels and storage capacity,’ says Ravi Bhatiani, executive director of the Federation of European Tank Storage Associations (FETSA). ‘The current geopolitical risks, that can negatively impact on trade flows, are a cause for concern.’ These geopolitical risks include Brexit, which has loomed large over European

‘You cannot just switch the taps off and expect a business to keep going’ Peter Davidson, executive director, Tank Storage Association

politics on both sides of the Channel for four years. ‘To echo the EU statements, it’s the first time in recent history where a trade negotiation starts from a point of free trade and is aimed at erecting trade barriers,’ Bhatiani says. ‘Wherever there are barriers, including non-tariff barriers, such as certificates or checks, there’s a negative impact on trade.’ At the moment, it is still business as usual with the UK as the transition period for all existing rules and treaties remain in place until the end of 2020. ‘We really do not know what’s going to happen then,’ says Peter Davidson, executive director of the UK’s Tank Storage Association. ‘Business really hates uncertainty but the good news is that TSA members are used to importing and exporting to and from the EU and outside the EU, so they already have the systems and processes in place.’ TOWARDS NET ZERO EMISSIONS There are many questions yet to be answered about how the UK’s trading relationship with the EU will operate beyond 2020, but overall Brexit is something of a short-term blip compared to the longer-term challenge posed by the energy transition. In December 2019, the EU announced its ambition to be the world’s first climateneutral continent by 2050, which will be enshrined in law through legislation introduced in 2020. The EU expects that

its Green Deal Plan will mobilise at least €1 trillion of sustainable investments over the next decade, impacting every aspect of the economy. The UK has already moved ahead with its own carbon neutral legislation. In June 2019, it was the first major economy in the world to pass laws to end its contribution to global warming by 2050 with the aim of bringing all greenhouse gas emissions to net zero by 2050. In February 2020 Prime Minister Boris Johnson surprised the automotive industry when he announced the government would bring forward a ban on the sale of new petrol and diesel cars, including hybrids, to 2035, five years earlier than planned. Green groups welcomed the news, but the Society of Motor Manufacturers and Traders said it was ‘a date without a plan’. Much the same can be said of the net zero carbon ambitions of both Westminster and Brussels. ‘People in the sector are generally supportive of decarbonisation,’ says Davidson of the TSA, ‘but the concern is that there’s no information whatsoever about how we achieve this.’ FETSA’s Bhatiani echoes this. ‘We are in no way opposed to the move to a climate neutral economy and we support the objectives of the EU Green Deal. ‘It remains to be seen what specific legislation comes out of it, but we are not looking to obstruct anything, we just want a stable investment environment with stable laws.’ Terminal and tank storage operators are ready and willing to support the transition, but they need clear guidance on the policies that will determine the future liquids mix in order to configure the right storage capacity. That will include future fuels as well as traditional fuels required to meet international and national strategic storage obligations to fuel an economy for 90 days. In the future, these strategic storage requirements will change to reflect the energy transition. Already less diesel and more petroleum is required. ‘In the future, we could see the need for strategic storage of liquified hydrogen or synthetic crude oil dependent on how the economy is fuelled,’ Bhatiani adds. ‘Terminals are uniquely positioned to store these fuels and make them available in the blends that are required,’ Davidson adds. ‘In the medium to long term, terminals will store a larger number of substances but in smaller quantities.’ Again, this will require operators to have foresight on the pathways to 2050 – and these investment journeys take many years to implement, which means there is little time to lose. ‘Post-Buncefield, companies have been undertaking upgrading programmes for

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MARKET ANALYSIS STORAGE IN EUROPE secondary and tertiary containment, some of which can take 10-20 years,’ Davidson says. ‘But if in the future they’re not going to be storing the same volumes of product, then what does this means in terms of those programmes? Are they still needed?’ Many terminals are a mix of hydrocarbon and chemicals storage. If hydrocarbon storage is no longer wanted, then is the chemicals business still viable – and if not, what does that mean for chemicals supply chains? ‘This is a process that needs to be managed,’ Davidson explains. ‘You cannot just switch the taps off and expect a business to keep going.’ Frustratingly, for those on the UK side of the channel, Brexit consumes all political attention and may continue to do so for some time yet. ‘We are eagerly awaiting government consultation, but they are nowhere near as engaged as we would like,’ says Davidson. CHANGING INVESTMENT PRIORITIES One trend that is clear is that investors are growing a little more wary of backing oil and gas projects in a world where governments are fast-tracking policies that will radically reshape the economy. This is piling on the pressure for oil and gas companies to commit to their own net-zero targets – and this has a real cost. Valentina Kretzschmar, Wood Mackenzie director for corporate research, says that Repsol is the first oil and gas company to align its portfolio with the Paris Climate Goals, resulting in a post-tax impairment of €4.8 billion. And research by IHS Markit has found that while investors have retreated from energy stocks because of the sector’s underperformance, there is growing evidence that environmental, social and governance issues are also increasingly weighing on its overall investment attractiveness. Indeed, 72% of the institutional and private equity investors surveyed said greater certainty about the timeline of energy transition would help them value assets with greater conviction. The European Investment Bank has already announced it will end financing of fossil fuel energy projects by the end of 2021. This brings gas, long seen as important bridging fuel to a low carbon future, into the same pariah status as coal and oil. Should the popular and political tide turn against gas, then this could prove an uncomfortable position for those that have backed capitalintensive LNG projects. As a result, some in the industry are already seeking to green their LNG projects. Shell delivered the first carbon neutral LNG cargoes in 2019 and several companies are investigating using renewable power to drive the energy-intensive liquefaction process.

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Terminal operations, however, look set to remain part of the infrastructure mix in the decarbonised world, whether storing legacy traditional fuels (which will continue to have a place for many decades yet), biofuels or synthetic crudes. And as such they remain attractive to investment funds seeking stable long-term assets. In 2019, Vopak sold its Algeciras, Amsterdam and Hamburg terminals to First State Investments for a total of €725 million, while I Squared Capital is in the process of acquiring 45% of the shares in Rubis Terminal, which comprises 13 facilities with total capacity of 3.5 million m³. The transaction is expected to close in the first half of 2020. ADDING CAPACITY IN AN UNCERTAIN WORLD In the meantime, the industry continues to invest for the future, whatever it may bring. ‘Over the next five years, our members plan to invest €5.337 billion in renewing and upgrading terminals, investing in new infrastructure and technologies to store both the future liquid products and existing products that will be required during the energy transition and beyond,’ says FETSA’s Bhatiani.

‘We see the majors taking over this market, through joint ventures, mergers and acquisitions and other types of deals, such as Maersk building up its own bunker supply business’ Krien van Beek, founder of RVB Tank Storage Solutions

The development of the 1.3 million m³ HES Hartel Tank Terminal, for example, is well underway in Rotterdam, with construction work on the tanks and piping in full swing and work on the maritime facilities complete. The new tank terminal will be the first terminal in the Netherlands that will be built according to the latest PGS 29 regulations for tank storage. Commissioning is expected in Q3 2021. Vopak is adding chemicals capacity at Terminal Linkeroever in the Port of Antwerp in Belgium. The additional 50,000 m³ is expected to be commissioned in mid-2021. And Vesta Terminals is adding tankage in Antwerp, with five new tanks of 30,000 m³ each for (bio) jet fuel, gasoil & diesel, taking total capacity at the terminal to almost 950,000 m³.

At the moment, the storage market in the main European hubs is tight, particularly for fuel oil and biodiesel storage. For chemicals storage, the market is a little softer and set to remain so into the second half of the year. ‘A lot of new chemicals capacity is coming online, and we are seeing more availability than we have seen for the last four years and so there will be some pressure on pricing,’ says van Beek of RVB Tank Storage Solutions. IMO 2020: HERE AT LAST The general consensus among those interviewed for this article one month after the new rules came into place is that so far, the transition had been smooth, with no known supply shortages although it has tightened the market for fuel oil storage. ‘It’s created a need for more tanks and smaller tanks that are just not available at the moment,’ says van Beek. ‘The majors prepared for this last summer to make sure they were ready in time, but the traders took a wait-and-see approach and it may be that some of them missed opportunities. One thing is certain, smaller companies are finding it harder to handle so many different fuel specifications and origins so more and more, we see the majors taking over this market, through joint ventures, mergers and acquisitions and other types of deals, such as Maersk building up its own bunker supply business.’ IMO 2020 will not be the end of the fuel shift for shipowners with greenhouse gas emissions next in the firing line, with the UN agency setting an ambitious target to halve emissions by 2050. And already the very low sulphur blends introduced to meet IMO 2020 are in the firing line. The Clean Arctic Alliance has pointed out that the new blended fuels – described by action group Seas at Risk as ‘super pollutant Frankenstein fuels’ – will actually lead to a surge in black carbon emissions, a pollutant that accelerates the melting of Arctic sea ice. The campaign group is calling on the International Maritime Organisation to support an immediate switch to distillate fuels for ships in the Arctic and develop a global rule prohibiting fuels with high black carbon emissions. ‘It beggars belief that amidst a global climate crisis, the marine fuel industry could develop these VLSFOs without knowing their effect on black carbon emissions and the climate, particularly in the Arctic – especially as the IMO has spent almost a decade considering how to reduce black carbon emissions from shipping,’ says John Maggs, senior policy advisor at Seas at Risk. It is very much a case of watch this space.

American Tank & Vessel

Offers Choices for Hydrocarbon Storage In the emerging hydrocarbon market, a critical decision is choosing the best storage solutions to meet a project’s unique needs. AT&V’s in-house capacity supports the options in the table below. If you would like more information, call or email for support or a copy of our guide built to address gas storage options.

AT&V Storage Options TYPES OF HYDROCARBON STORAGE

SIZE RANGE

PRESSURE RANGE

DELIVERY MODE

Vertical Vessels (API-620 and ASME)

10,000 - 500,000 Gal.

5 - 2,000 psig

A, B, C, & D

Horizontal Vessels (API-620 and ASME)

10,000 - 1MM Gal.

5 - 2,000 psig

A, B, C, & D

Spheres (API-620 and ASME)

10,000 - 3MM Gal.

5 - 400 psig

C&D

API-620 Steel/Concrete Tank Options

500,000 - 40MM Gal.

2 - 15 psig

C&D

API-650 EFR, IFR, Cone & Dome Roofs

20,000 bbl - 750,000 BBL

0 - 2.5 psig

Delivery Modes: A = Truck, B = Rail, C = Water, D = Site

Vessels and Spheres can be Single Walled or Double Walled.

Request a copy of our decision storage guide or ask us a question at tanks@at-v.com

tanks@at-v.com

MARKET ANALYSIS SUSTAINABLE STORAGE

THE INTEGRAL SUSTAINABILITY APPROACH BRO and ENGIE explain how they developed an approach to achieve a wide-range of significant sustainability gains for the tank terminal sector WHAT does sustainability mean? Are you looking at it from a traditional perspective? Will you work with alternative energy measures as part of the ongoing energy transition? Considering these questions is the first step to achieving truly sustainable operations.

does not only have to think about storing alternative fuels, but also needs to look at improving the terminal and its operations. So far, this sustainability transition is only visible to a limited extent. And it can be done differently.

However, many in the industry are looking beyond these to achieve a real sustainability impact on their operations. BRO and ENGIE have developed an approach to maximise sustainability gains in an easy way with its Integral Sustainability Approach.

Just like in most industries there is an urgency for the storage industry to take the next step in the field of sustainability. This urgency can come from companies own business insights and motivation, from the measures imposed by governments or through the requirements of their customers.

Traditionally, the bulk liquid storage industry has focused on storing fossil fuels, gases and chemicals. However, a sustainability transition is underway in the industry. That means the industry

Currently, measures are implemented in energy sources to facilitate this process. Some good examples of these measures in the sector are the use of solar parks and wind turbines. However,

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if a company wants to make a real impact, it is important that in addition to alternative energy sources, attention is paid to the companyâ&#x20AC;&#x2122;s broader sustainability approach. But what else can be done? And what opportunities can that bring to an organisation? BRO and ENGIEâ&#x20AC;&#x2122;s new Integral Sustainability Approach explores this further. The goal of the initiative is to make a real impact within a company and highlight that sustainability can be fun and widely supported. One of the key success principles is to take the entire organisation along the journey, from management to operations. This approach not only results in a reduction of energy usage and cost, but also increases biodiversity, company reputation, employee health and

MARKET ANALYSIS SUSTAINABLE STORAGE

satisfaction. It is often thought that certain measures cannot be taken due to strict compliancy rules within the sector, such as PGS29. Of course, these rules imply limitations, but at the same time we see that much more is possible than initially thought. In the Integral Sustainability Approach, BRO and ENGIE look at a wide range of sustainability measures. They first focus on ways to reduce energy usage and then look at alternative energy sources using the ‘Trias energetica’ concept. Other measures also receive attention such as stimulating biodiversity on and around company premises and increasing employee health. This is done by jointly looking at: 1. Employees (health and satisfaction) 2. Company buildings and surroundings 3. Processes and mobility 4. Energy usage To achieve this, BRO and ENGIE work step by step with the company. The approach used is based on ‘the natural step approach’ and can be divided into four steps: 1. Awareness & vision: in this step we try to answer a series of questions. Why is sustainability important? What impact can it have on the company? What is the sustainability ambition of the company? In other words, why does the company want to become more sustainable and how far does it want to go to achieve this? 2. Current situation: Research is conducted to determine the baseline

of the company, which involves the following questions: What is the energy usage? Which energy sources are used and for which purposes? What is the situation regarding biodiversity? The answers to these questions, together with the ambition, is the starting point for further solutions and measures. 3. Bottlenecks, solutions and measures: The approach then brainstorms the most important possibilities, ideas and measures in order to achieve the stated ambition. This is done through an interactive work session involving all layers of the organisation, resulting in ideas that are innovative and perhaps somewhat unorthodox, but supported throughout the entire organisation. These ideas and measures are listed including their potential effect. 4. Define steps and actions: The measures to be taken are then incorporated into a roadmap with short- and long-term goals so the company can immediately get started with further research and realisation. Rian Vermeulen, senior advisor at BRO, says: ‘This approach has been received enthusiastically by our clients. Not only do we try to approach sustainability from a wider angle, we also want to make it fun by introducing new methods to take on this subject and involving all layers of the organisation. As part of the process, BOR and ENGIE organise a one- or two-day workshop, producing useful results while taking up

as little time as possible. The outcome is sometimes surprising. By putting different disciplines abd experts together they came up with the idea to reduce nitrogen by making a small adjustment to the jetty. This allows larger ships to come closer to the terminal, so they use less nitrogen to pig the pipes, which leads to a significant cost reduction. The also came up with the idea of storing rainwater to spray dikes and clean machines. This results in a saving in the use of drinking water and an ecological benefit based on limited costs. These ideas are presented in a report which provides a general overview of the feasibility and payback time of the project. It is not an extensive technical report, but a report that is readable and understandable for everyone while being thorough and complete. This is complemented with maps to immediately show which measures can be taken at the terminal. ‘By sharing these with your associates, sustainability really comes to life in an organisation,’ Vermeulen adds. It is important that sustainability is then integrated into the vision, strategy and policies of the company. The trick is to ensure that the subject remains fun and comes to life among the staff. Simple ideas such as using sustainability measures in a game of bingo, where employees can mark the sustainability gain achieved, can ensure that employees remain involved in a playful way. Moreover, achieving (part of) the sustainability ambition can be rewarded, which positively influences the behaviour of employees. This is important to continuing to promote integral sustainability, not only in the near future but also in the long-term. For more information This article was written by Rian Vermeulen, advisor, BRO, www.bro.nl and Dennis Risseeuw, business consultant, ENGIE, www.engie.com. Vermeulen and Risseeuw will be speaking more about this unique approach to terminal sustainability on the first day of the StocExpo conference.

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TECHNICAL NEWS

TECHNICAL NEWS: GLOBAL INDUSTRY UPDATES Intero Integrity

Triax

SAFETY LADDER WITH LATERAL ACCESS Access to the dome of vehicles is always a risk factor. The surface of the dome is unstable and depending on the contents of the tank or container, it can be slippery. It only takes one wrong move to cause a fall that can, in the worst case, be fatal. The Triax safety mobile ladder protects the operator during their accession and their evolution on the dome, thanks to its corbelling. Depending on the situation and available space, frontal access to the vehicle is not always possible. In response, Triax has developed its new safety mobile ladder with lateral access. Thanks to an ingenious winch system, the ladder can tilt back to back off from the tank without the operator having to move it. In this way, the operator can move the ladder parallel to the vehicle in a restricted area. Access to the corbelling is possible via an aluminum ladder with bars. This ladder is adjustable in height by using a winch. The height of the mobile ladder with lateral access is adjustable from 2,650 mm to 4,400 mm. Access is facilitated by two ramps. This new safety mobile ladder with lateral access combines an easy access even in difficult environments, and total security of the operator during his interventions: a practical and innovative concept. PAGE 68

Elaflex

INTERO INTEGRITY ACQUIRES THE SNIFFERS

ELAFLEX SUPPLIES NEW DRY HOSE DELIVERY NOZZLES

Intero Integrity Services has acquired The Sniffers, a longstanding service provider to the oil & gas industry and specialised in emission monitoring and pipeline integrity services.

When distributing fluids, large quantities are commonly purchased and then filled in small quantities such as in drums and intermediate bulk containers (IBC).

The Sniffers, founded in 1991 and headquartered in Belgium, offers emission reduction services such as LDAR and tank emission measurements, energy saving projects for flare- and steam-losses and underground pipeline integrity services. Through 750 projects every year, the 90 specialists of The Sniffers bring best-in-class services to a variety of oil and gas companies globally.

For this open media transfer Elaflex has launched a new version of dry hose delivery nozzles ‘ZL’. The ball valve construction is made of stainless steel and PTFE seals. It is suitable for universal applications in the chemical and petroleum industry.

Rienk de Vries, Intero’s CEO, says: ‘This acquisition strengthens our business and is a further step in developing our environmental and sustainability goals and enhancing our presence in global key industry sectors. Their experience and credentials, together with our own, will open new possibilities in providing additional services to our current and new customers.

In addition to the standard type ‘ZL’ with 2” or 3” BSP thread, other hose side connections of stain¬less steel in DN 50 und 80 are available:

Bart Wauterickx, CEO of The Sniffers, adds: ‘Intero Integrity Services provides The Sniffers with an extensive global network and access to many new customers. Our team is pleased to join strengths with Intero Integrity Services and to continue our journey to growth. Our emission reduction expertise and our pipeline integrity services can now be brought to more customers around the world. The Sniffers will help them realise their environmental and sustainability ambition. Climate change conferences like COP25 and sustainability objectives provide a very positive business outlook for The Sniffers. This acquisition will accelerate our global growth opportunities.’ The synergies between both companies for integrity and industrial services are promising. The services of The Sniffers will be added to Intero’s current inspection and industrial services portfolio. Intero Integrity Services is a specialist for keeping oil, gas and petrochemical facilities clean, safe, well maintained and highly productive.

A full bore of DN 50 enables flow rates of approx. 50 – 900 litres/minute, max. working pressure 10 bar.

• With ‘TW’ male adapters VK • With ‘Camlock’ adapters AVKI • With dry disconnect couplings DDC-V For an improved handling, it is possible to use a swivel of stainless steel (type DG) between nozzle and hose assembly. Elaflex is a specialist company in safe connections for the handling of hazardous goods and sensitive fluids.

TECHNICAL NEWS

Emerson

EMERSON LAUNCHES VIRTUAL REALITY WORKFORCE TRAINING TOOL Emerson has launched Mimic Field 3D, an immersive training experience designed to help new and incoming workers gain a deep understanding of how changes in the field impact industrial plant processes. This virtual reality-based (VR) solution gives personnel simulated hands-on experience to prepare for any plant event, helping them make better decisions regarding operating changes and practise proper procedures before entering potentially hazardous plant areas. There’s a clear need for organisations to seek innovative technology solutions to address the talent shortage quickly through innovative augmented reality and VR solutions like Mimic Field 3D. In fact, a recent survey found that 66% of companies plan to adopt these technologies by 2022. Field operators typically train on physical equipment, which adds risks and costs, particularly during some of the plant’s most critical phases – start-ups, shutdowns, turnarounds and outages. Many organisations are seeking technology solutions to rapidly upskill new workers for high performance in the shortest amount of time.

Customised tank mixing systems for storage tanks

MCDERMOTT GIVEN APPROVAL TO COMMENCE FEED ON PREEM REFINERY PROJECT

McDermott International has been given approval from Beowulf Energy and Preem to start the FEED work for its residue oil conversion complex project.

• no maintenance in the tank • complete mixing of tank content • low investment costs • low energy input McDermott previously worked • noatunmixed dead zones the Preem refinery as the FEED and engineering, procurement, • construction wear-resistant operation management contractor for the hydrocracker project, which was also • no sealing problems based on CLG technology, between 2003 and 2006. • optimisation with (CFD) Tareq Kawash, McDermott’s senior vice president for Europe, Africa,Computational Russia and Caspian, says: ‘McDermott is proud to continue supporting Beowulf Energy and Fluid working at the Preem refinery with the development of the FEED phase for the Dynamics ROCC project. The project will be implemented at the Preem refinery in Lysekil, Sweden. The FEED phase follows the sizable technology license agreement between Chevron Lummus Global, McDermott’s joint venture with Chevron, and Beowulf Energy.

‘The award of this next phase as a testament to McDermott’s unique ability to leverage its pull through capabilities to deliver execution certainty to our customers.’ Work on the project will begin immediately and is expected to be finished in the fourth quarter of 2020.

‘Emerson’s digital twin portfolio is changing how we prepare the future workforce. Our industry will become increasingly reliant on VR tools like these to address the growing skills gap and improve training effectiveness,’ says Jim Nyquist, group president of systems and solutions at Emerson. ‘This advanced technology enhances training by offering a hands-on experience, which ultimately improves the safety of workers.’ This effort supports Emerson’s larger digital transformation initiative that provides software, data analytics, automation technologies, smart sensor and consulting services to help customers achieve Top Quartile performance – meeting performance metrics within the top 25% of peer companies. As part of Emerson’s Plantweb digital ecosystem, Mimic Field 3D empowers new workers to acquire knowledge and experience at a faster pace as they learn from each immersive experience, enhancing safety and overall operational performance.

www.koerting.de

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+49 511 2129-221

sales@koerting.de

TECHNICAL NEWS system to allow pre-emptive action against a developing surge event. This patented solution utilises a spring-biased reference chamber which imparts a pressure differential across a fixed orifice. The fixed orifice pressure differential is constantly monitored and, upon reaching a preset limit, will trigger the main surge relief valve to open.

M&J Valve

M&J VALVE SURGE RELIEF SYSTEMS PROVIDES PRESSURE PROTECTION M&J Valve’s surge relief system of valve and grids provides a constant level of protection from pressure surges. The valves and skids are designed and manufactured for critical protection against dangerous system pressure spikes and pipeline surges. Surge pressure is defined as the rapid change in pipeline pressure caused by a change of flow rate in the liquid pipeline. Pressure surges travel at sonic velocities through the pipeline at speeds of up to 1000 m/s and can cause severe infrastructure damage, loss of product and environmental harm, as well as a significant threat to personnel safety. For dirty service such as crude, sea water pipelines, M&J Valve offers nitrogenloaded surge relief valves, which means they can operate independent of fluid properties. For clean service, they offer pilot-operated surge relief valves. The company has also evolved a patented

rate-of-rise surge relief system that not only assists in providing pipeline safety protection, but also overall pipeline system stability: minimising possible downtime and allowing operations to continue without interruption. Mohammed Umair Siddiqui, regional sales manager, Middle East and North Africa, says: ‘As a specialist manufacturer of fluid control systems, we are focused on developing technologies that meet both current and future customer needs. The M&J Valve patented surge relief system provides a proactive response to pressure change, as well as being secure from cyber-attack and reliable in remote locations.’ The M&J Valve solution combines a traditional surge pressure relief valve with a predictive pressure rate-of-rise

SUMA, the leading innovator in advancing mixing technology.

Looking for longterm digester efficiency?

As the surge dissipates, the valve closes without slamming shut, preventing ‘chatter’. It is then ready to act again on any subsequent surge. Therefore, the line is constantly protected from build-up of pressure surges. Because it uses no electronic devices, the M&J Valve surge relief system is not affected by power loss, communication disruption, or cyber-attacks: making it far less vulnerable to external factors. The complete circuit is mechanical and provides a reliable hydraulic safety barrier against transient pressure surges. The system not only reacts to high pressure surge waves to prevent the process from exceeding the maximum allowable operating pressure, but more importantly it continuously detects the rate of pressure rise in the system and will react before a surge event can occur. It therefore supports condition monitoring and preventative maintenance regimes. In addition, its high flow capacities mean that smaller and/or fewer valves are used, which saves on installation costs and weight. A set-pressure test port makes it easy to comply with regulatory testing requirements (such as D.O.T.), and an additional reserve flow capacity means the system can even cope with unexpectedly large surge transients.

Tecam

■ 60 years of experience in mixing of various substrates ■ Tailored solutions ■ Long-term reliability ■ High operational safety ■ User friendly application

TECAM LAUNCHES NEW CORPORATE IDENTITY Tecam has launched a new corporate identity to reflect its innovation for hazardous waste and emissions treatment. The new identity, reflected in new graphic images, showcases the values that makes the Spanish company stand out from others in the market. Its slogan, ‘Environment. Technology Efficiency’ highlights the company’s expertise, the area it operates in as well as its value proposition towards customers and society.

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

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This rebranding, included in the company’s strategic development plan, reflects its positioning for the future. Bernat Sala, CEO of Tecam, says: ‘The new image represents our business vision

TECHNICAL NEWS based on the values of commitment, ambition, honesty, vision of the future, social and environmental awareness and didactic spirit, which are part of the company’s DNA. These values lead our relationship with all market players – customers, employees, suppliers, institutions – and make us unique.’

Rotork

ROTORK’S ACTUATORS USED ON NEW BRAZILIAN FPSO VESSEL Electric and fluid power actuators from Rotork have been installed on a new Floating Production Storage and Offloading (FPSO) vessel in Brazil. Customer Metroval specified Rotork intelligent IQ3 multi-turn electric actuators, as well as CP and GP pneumatic actuators, to control plug and butterfly valves on an FPSO, which will operate in the LIBRA oil fields in the Atlantic Ocean’s Santos Basin. The FPSO operating at the site is expected to produce 180,000 barrels of oil equivalent per day. The actuators will be operated by end user Modec to control the flow of oil and gas from the FPSO to the metering system, with the accuracy of the IQ3, CP and GP actuators a key factor in the customer’s decision to purchase Rotork’s products. Rotork Site Services assisted with installation of the actuators on site by providing valve adaptation, mounting the actuators on to the valves and commissioning. Rotork’s versatile, modular CP range of pneumatic actuators use a scotch yoke design available in both spring-return and double-acting configurations. The actuator’s compact and efficient design is capable of producing high output torques of up to 4,500 Nm (39,800 lbf.ft) even at low pressures. Corrosion resistant cylinders are made from carbon steel and are electroless nickel-plated while the CP is suitable for use in Safety Integrity Level 3 (SIL3) applications, certified to IP 66M/67M for environmental protection and explosionproof to ATEX 2014/34/EU standard. The GP range of scotch yoke actuators provide quarter-turn movement for either on/off or modulating duty. Available in spring-return or doubleacting variants, the GP can produce output torque up to 600,000 Nm (5,000,000 lbf.ft) and is suitable for use in SIL2 and SIL3 systems. Certification to IP66M/67M and ATEX 2014/34/EU is included as standard.

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TECHNICAL NEWS

Gpi Group

GPI LAUNCHES GPI TANK XL The Gpi Group has launched Gpi Tanks XL, a new operating company specialising in the sale and production of stainless-steel storage tanks. The new company specialises in stainlesssteel tanks that are larger than six meters in diameter or have a capacity of 500 m3 or more. Production takes place at its production plant in Groot-Ammers or on location at the customer’s site. Gpi Tanks XL specialises in largescale tanks up to 15,000 m3. The new company is the result of a growing need from the marketplace. Fred Boere, CEO of the Gpi Group says: ‘We see an increasing demand for larger, high-quality tanks and the developments in this field tie in closely with the ambitions of the group. Gpi Tanks XL is more effectively able to meet these needs by bringing together the specialists in this discipline.’ The business is now able to take on large-scale projects with relatively short lead times using innovative construction methods which have been developed

in house. Storage tanks of up to 5,000 m3 can be assembled in Groot-Ammers and shipped directly via the river Lek to destinations such as the port of Rotterdam. For the on-site production of tanks, several modern construction techniques can be deployed. ‘Globally we can complete single or multiple tanks of up to 30 metres in diameter and 30 metres in height using two unique production systems,’ adds Arno Rodenburg, COO of the Gpi Group. ‘We manage each project from start to finish, from the sale and tank design to production and installation.’

Hydratight

HYDRATIGHT COMPLETES STORAGE TANK REPAIR USING COMPOSITE TECHNOLOGY

The company’s markets include customers from diverse industries: from storage terminals and bio-energy plants to producers of edible oils or (fine) chemicals. In the chemical industry in particular, Gpi has identified a shift towards tanks made from stainless steel – rather than conventional steel – due to their increased longevity and lower maintenance. The team consists of its own sales department and a team of design engineers as well as a team of operational staff working in the factory or on location. Day-to-day management is in the hands of managing director Geert Mulder. With Gpi Tanks XL, it is Gpi’s goal to gain a leading position in the worldwide market for tank construction in the next five years.

Leading pipeline repair specialist, Hydratight, has successfully completed the repair of a storage tank at a leading petrochemicals facility in northern Germany. Using proven composite wrap repair technology developed by international adhesive technology firm Henkel, the Hydratight repair allowed petrochemical processing to continue until a new storage tank could be installed. During a planned shutdown and routine plant inspection at the site, a potential problem with a storage tank was identified, specifically reduced wall thickness and stress corrosion cracking. Due to the long lead time of up to three months for the procurement of a replacement tank, Hydratight was contacted to repair the tank to allow production to continue in the intervening period. The key drivers for this project were the need for a quick repair, whilst

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PAGE 72

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TECHNICAL NEWS ultimately maintaining tank integrity, quality of the repair and safeguarding health and safety, to enable the plant to return to production. Hydratight proposed the Loctite composite wrap repair, providing a temporary solution that reduces repair times and the need for costly steel replacements. It was specifically developed to meet the requirements of ISO 24817 and is certified by DNV GL, Lloyds Register and TUV Rheinland. Upon contract award the timeline available for the necessary preparation, engineering, material procurement and manpower mobilisation was expedited, enabling Hydratight to complete the tank repair within two weeks. ‘This was a significant project for both Hydratight and our partner Henkel, due to the large size of the storage tank, 3,500mm diameter, 15,500mm length and surface area of 200 m2, with several protruding pipes and the expedited deployment of the composite wrap repair solution,’ says Frank Koch, commercial director, Leak Sealing, Hydratight. Composite Wrap Repair is an essential part of Hydratight’s portfolio of specialty service products, providing online solutions for asset repair, maintenance & modification, which includes Morseal Leak Sealing, Split Sleeve Repair Clamps, and MorSafe Hot Bolting & Flange Integrity Clamps. Available in a wide variety of sizes, ratings and arrangements, which can be supplied independently or as part of a larger scope.

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21.01.2020 11:53:43

TECHNICAL NEWS

Servelec Controls

SERVELEC CONTROL TO HELP EASINGTON TERMINAL PROCESS GAS Centrica Storage has appointed Servelec Controls to help prepare Easington Terminal to process gas from Tolmount.

expanded and rationalised in order to alter their functionality, maximise efficiencies and minimise risk. The Tolmount gas field is a joint venture between Premier Oil and Dana Petroleum. Chris Stones, sales director at Servelec Controls, says: ‘The Tolmount field development is an incredibly important project for the future viability of the UKCS and we are delighted that Centrica Storage was awarded the contract to receive and process the resulting gas.

‘Here at Servelec Controls we pride ourselves on the strong, long-term relationships we develop with our client base and this contract award by Centrica Storage demonstrates the confidence they have in our ability to deliver such an essential element of the Easington site safety system upgrade. With many years of successful project delivery to Centrica Storage, our collaborative approach will ensure that this contract is delivered on schedule and budget.’

This project will extend the site’s lifespan by around 10 to 15 years. The Tolmount field development in the Southern North Sea is expected to produce enough gas to supply around 2.5 million homes and is scheduled to come on stream in winter 2020. Centrica Storage has been awarded the contract to process the gas from Tolmount and this will be routed through Easington Terminal via a new pipeline. In order to facilitate the additional gas, modifications must be made to the Easington site, including an upgrade and rationalisation of the existing functional safety systems. Servelec Controls were responsible for installing the existing emergency shutdown and fire & gas systems (FGS) at Easington. The systems are still functional and supportable in their current form, but now they must be

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PAGE 74

SHORTLIST SUSTAINABLE IMPACT

Sponsored by

> CLH > GTI Fujairah > Kuwait Oil Company > Sprague > Vopak

SAFETY EXCELLENCE > > > >

Alkion Terminal Vado Ligure, Italy Fujairah Oil Terminal, UAE Nâ&#x20AC;&#x2122;djamena Storage Tank & Pipeline Construction project, Thad, Africa Topsafe Petrochemical Logistics and Storage, China

TERMINAL EFFICIENCY > Arabian Chemical Terminals > CLH > GTI Statia > Gulf Petrochem > Lipids Terminal > NPP &MS Terminal, Kuwait Oil Company > Topsafe

PORT INNOVATION > Marseille-Fos Port community > Qronoport, Port+

ENVIRONMENTAL PERFORMANCE > > > > > > > > > > >

Alsim Sense, Engineering Software Steyr EPT VOCSTOP, Environmental Protection Technology Flying Combustor (Mobile Degassing Services), SIS FoamTronic, Saval Integrated system for vent gas treatment at the port of Rotterdam, Tecam ITW Online Cleaning, ITW Mechanical Seals & Seal Support Systems Aesseal Online Storage Tank Floor Inspection System, Diakont Advanced Technologies Rosemount 5300 thin interface, Emerson RTO based mobile degasser, Triple D SuperVault Above Ground Storage Tank, Fuelchief

EMERGING TECHNOLOGY > > > > > > > > > > >

4D Lizard, Advanced 3D Laser Solutions CEA Systems Emerson Location Awareness, Emerson Fuel Chain, Western Global Gen III foam proportioner, FireDos Nano Coating, Nanoc Neon Valve Sensor, TWTG Online Storage Tank Floor Inspection System, Advanced Diakont Technologies Q/Platform, Fuqon Qronoport, Port+ RTO-based mobile degasser, Triple D

Sponsored by

INNOVATIVE TECHNOLOGY > > > > > > > > > > > > > > > > >

Sponsored by

Autonomous In-Service Tank Floor Inspection Robot, Square Robot BOL Recon, DTN Chubb TankSafe Engineering Software, Steyr EPT Ballooning Relief Valve, Environmental Protection Technology Guided Wave Testing, Guided Ultrasonics Inflatable Internal floating Roofs, Accede Nano Coating, Nanoc Neon Valve Sensor, TWTG Online Storage Tank Floor Inspection System, Diakont Advanced Technologies Palm oil distribution management, Lipids Terminal PI Foam System, Swiss Fire Protection Qronoport, Port+ RMS PA Phased Array Corrosion Mapping, Eddyfi Technologies Safe tank foundations, Keller Holding Tank Inspection Tomographic Probe Sensor, Rocsole Treated & untreated ballast water as commodity, Nick Environmental Services

RISING STAR > > > > > >

Daan Schalck and Jan Lagasse, North Sea Port Hervé Yimgna Mengouo John Reynolds, Managing Director, Reynolds Training Services John Tillema, CTO, TWTG Ravi Bhatiani, Executive Director, FETSA Steve Bickerton, Senior Managing Partner, Prostar Capital

SAFETY TECHNOLOGY > > > > > > > > >

Sponsored by

Electromagnetic (EM) Shield For Fiberglass Tanks, Lightning Electrotechnologies Engineering Software, Steyr GEN III foam proportioner, FireDos H2M Reporter, Advanced Mobility Services MOCS (Monitoring of Confined Spaces), G4S Safety Solutions ‘No man entry’ tank cleaning robots, Re-Gen Robotics Proof-testing Devices for Overfill Prevention, Emerson Sureflow Nozzle Filter, Saval Temporary Pump for Fire Protection, Qualm

OUTSTANDING ACHIEVEMENT > > > >

Frank Erekelens, Group CEO, LBC Tank Terminals Gert van Meijeren, CEO, CTS Kathryn Clay, President, ILTA Nuria Blasco, General Manager, Tepsa

TERMINAL OPTIMISATION AWARD > 4D Lizard > CEA Systems > KBR > Tank Terminal Training > Toptech > Western Global

Winners will be announced at the Global Tank Storage Awards Ceremony on 10th March in Rotterdam. View the full list of winners in the April/May edition of Tank Storage Magazine and at www.tankstoragemag.com/awards

TECHNICAL FEATURE TANK GAUGING

SIMPLIFIED PROOF TESTING OF RADAR LEVEL GAUGES AnnCharlott Enberg from Emerson explains how proof testing of the latest non-contacting radar level gauges within overfill prevention systems can be performed remotely, improving worker safety and increasing tank availability. 01

SAFETY must always be the top priority at tank terminals where hazardous, flammable or explosive materials are stored. Accidents can have catastrophic consequences. To minimise the risk of safety incidents occurring, it is essential for tanks to have in place a robust overfill prevention system (OPS), designed and implemented in compliance with the relevant industry standards. An OPS safety loop typically consists of a level sensor, a logic solver and a final control element in the form of actuated valve technology. The complete safety loop must be regularly proof tested to ensure it will work correctly when there is a safety demand. Proof tests are operational procedures, conducted in accordance with a safety manual to verify that a device fulfils its safety requirements in an OPS and achieves its required safety integrity level (SIL) for the application. A safety loop’s probability of failure on demand (PFD) – i.e., the risk of it failing to perform its intended function – increases over time after commissioning. Performing a proof test resets the PFD to a lower value and ensures the safety loop provides the risk reduction it was designed to do. PROOF TEST COVERAGE Advanced level measurement devices for overfill prevention applications incorporate diagnostic software that identifies a failure and then takes the device to a safe state.

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However, some failures are not detected by the diagnostics. These are called dangerous undetected failures (DUs) and are revealed during proof testing. The effectiveness of a proof test in finding DUs is known as the proof test coverage factor, which should ideally be as high as possible. STANDARDS To create consistency in their approach to safety, many tank terminal owners and managers apply both the American Petroleum Institute’s API 2350 standard, which addresses overfill prevention for large petroleum storage tanks, and the International Electrotechnical Commission’s IEC 61511 standard for designing an OPS. Both standards place great importance on regular proof testing. IEC 61511 specifies that the entire OPS must be proof tested periodically, and the frequency of testing is determined by the PFD of the safety loop. API 2350 states that all components of an OPS that are required to terminate receipt must be tested annually, with continuous level sensors to be tested once a year, and point level sensors semi-annually. However, the interval between tests can be extended if there is a technical justification, such as the PFD calculation, to support it. Both standards require organisations to provide written procedures, schedules and documentation of proof testing. Two types of proof test, comprehensive

and partial, may be performed in compliance with API 2350 and IEC 61511. COMPREHENSIVE PROOF TESTING Comprehensive proof tests involve testing the entire safety loop in a single procedure, to ensure all its parts are functioning correctly. This will return the PFD of the safety loop back to, or very close to, its original level. Comprehensive proof testing is carried out manually by technicians in the field, with another worker stationed in the control room to verify the reaction of the system. There are two different ways in which a comprehensive proof test can be performed. In the first method, the level in the tank can be raised to the activation point of the level sensor being tested to provide proof that the instrument is functioning correctly. The danger of this approach is that if the device is a high-level sensor and it fails to activate during the test, this can lead to a spill that would constitute a safety risk. Having to fill a tank just to test the instrument is also time-consuming, requires operators to monitor the tank level, and can interrupt normal tank operations, causing costly downtime. Performing proof tests in this way has been an acceptable practice in the past, but the latest version of API 2350 does not recommend that the tank level be raised above the maximum working level. The alternative approach is to remove the instrument from the tank and

TECHNICAL FEATURE TANK GAUGING and configuration and service for devices in the Rosemount tank gauging system and has built-in functionality that enables an operator to perform one or several proof tests. A step-by-step guide leads the operator through the various proof testing procedures, making them as straightforward as possible.

perform a simulated test in an alternative environment such as a bucket, for example. A significant disadvantage of this method is that it can involve workers having to climb tanks to access an instrument, thereby exposing them to a hazardous environment and putting their safety at risk. Performing proof tests in this way is also prone to human errors and can lead to tanks being taken out of service for an extended period, thus affecting profitability. In addition, if the instrument is removed from a tank containing a hazardous or unpleasant product, the test would be performed using water instead. This would fail to prove that the device would work in the specific application. PARTIAL PROOF TESTING A partial proof test is performed to ensure that a device has no internal problems and that all its functions are operating correctly. This type of testing may include one or several parts of the safety loop and will bring the PFD of these back to a percentage of the original level and ensure that the device fulfils its specified SIL requirement. As a partial proof test detects only a percentage of potential failures, a comprehensive proof test must eventually be carried out after a given time interval to return the instrument to its original PFD. However, performing a partial proof test can provide justification for extending the time interval between comprehensive tests, while remaining within regulatory requirements. REMOTE TESTING The digital technology available in modern level measurement devices

enables partial proof testing to be performed remotely rather than on location. Remote proof testing can be initiated via a command from the control room. Using this functionality, the instrument remains installed during the proof test. This is beneficial because performing tests during normal operation minimises tank downtime and reduces worker exposure to hazardous environments without sacrificing SIL capability and functional safety. It is quick and easy, and multiple devices can be tested simultaneously, thereby increasing speed and safety, and reducing operational cost.

Several different proof testing options can be performed through TankMaster, either individually or in sequence. For example, the software can verify that the deviceâ&#x20AC;&#x2122;s high-level alarm is functioning correctly through the use of an adjustable reference reflector that introduces a reflected radar signal, or echo, at a predefined position in the tank. The reference reflector is attached to a wire fixed to a parabolic or array antenna and is installed beneath the antenna. Alternatively, the high-level alarm can be verified using an innovative simulated reference reflector, whereby an artificial digital echo is inserted into the radar signal, which triggers the high-level alarm when detected. This eliminates the need to have a physical reference reflector, which provides the benefit of avoiding having a tank obstruction. Performing the test with either a physical or simulated reference reflector as part of a combination of partial proof tests can achieve a proof test coverage factor of 73%. Other available proof testing options include verification of automatic level measurements and testing of the analogue outputs and relay outputs of a connected Rosemount 2410 Tank Hub. At the end of a proof test cycle, all the tests and individual results are listed in a summary report. In addition, detailed reports are automatically generated

RADAR LEVEL GAUGES IN AN OPS Non-contacting radar level gauges, such as the Rosemount 5900 series from Emerson, are the technology of choice to serve as the automatic tank gauge (ATG) in bulk liquid storage tanks. This is a well-proven level measurement technology that provides high reliability and assured measurement accuracy. The Rosemount 5900 series is designed with functionality that enables the user to perform continuous product surface level measurement whilst undertaking remote proof testing, thus not requiring an interruption to normal tank operation.

TANK GAUGING SYSTEM SOFTWARE An operator can perform these proof tests safely and remotely from the comfort of their control room using the powerful and easy-to-use Rosemount TankMaster inventory management software package from Emerson, which brings all the tank information together. TankMaster provides operator overview, inventory and custody transfer functions,

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TECHNICAL FEATURE TANK GAUGING

2-IN-1 RADAR TECHNOLOGY It is considered best practice for new installations to employ two radar level gauges in a tank gauging system – one providing continuous level measurements and the other acting as the OPS sensor. The use of two radar level gauges rather than, for example, one radar level gauge and one point level switch, reduces complexity and the need for device-specific training, thereby minimising the potential for human error. For tanks with only a single opening, it can be costly and time-consuming to make modifications in order to install two separate radar level gauges. A solution to this problem is the Rosemount 5900S 2-in-1 radar level gauge. This device consists of two separate and independent electrical units and a common antenna. This enables a single level gauge to serve as both the ATG and an OPS sensor when connected with its cables separated in different cable trays and with separate power sources. This IEC 61511-compliant configuration allows for cost-efficient safety upgrades of existing tanks.

and stored for each proof test, thereby fulfilling the requirements of the relevant industry standards. Supporting effective document management, a proof test history option within the software shows information on when a test was performed and by whom it was approved. Further options within the software include proof test scheduling, enabling the user to specify when the next proof test should be performed, and the ability to set the desired type of reminder – either pop-up message or email. CONCLUSION Remote partial proof testing of radar level gauges, initiated through TankMaster software, enables testing to be performed

more frequently because the impact on tank operation is minimal. No manual work or climbing tanks is required, the risk of human errors is drastically reduced, and time is saved. Although remote partial proof testing does not eliminate the need for comprehensive testing, it can crucially provide justification for extending the time interval between comprehensive tests, while still complying with regulatory requirements. All of this helps to improve worker safety and increase tank availability.

01 Removing instruments to perform a simulated proof-test can involve workers having to climb tanks, thereby exposing them to a hazardous environment and putting their safety at risk 02 The digital technology available in modern level measurement devices enables partial proof-testing to be performed remotely, via an operator issuing a command from the control room 03 The Rosemount 5900S 2-in-1 radar level gauge consists of two separate and independent electrical units and a common antenna

For more information This article was written by AnnCharlott Enberg, functional safety manager at Emerson. Emerson.com/ RosemountTankMaster.

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12/02/2020 15:06

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Ivens a name renowned in the port of Antwerp and far abroad. Ivens builds storage tanks for chemicals and fuels. We are a family run business with a rich tradition and an excellent reputation.

Apart from its impeccable range of services, Ivens also takes care of pipelines, steel constructions and floating roofs for tanks. Our huge range comprises, among others, engineering, special transports and crane activities. All this is executed from A to Z by an internal and experienced team which always disposes over the latest systems and equipment.

In short, Ivens offers every customer a total package tailored to their needs. TANK AND STEELCONTRACTORS

TECHNICAL FEATURE DIGITAL TRANSFORMATION

FOLLOWING THE DIGITAL TRANSFORMATION PATH TO PREVENT PLANT FAILURES THE TANK terminal industry of today faces many challenges focused on operational excellence, efficiency, and profitability. One of the key challenges is to increase production with a smaller resource base, ensuring operations are sustainable and environmentally friendly, and have a large EBIT. The solution to this challenge is digitalisation. The technological progress that is happening globally is primarily the result of the rapid development of digital techniques and their versatile applications. As a result, the so-called fourth industrial revolution, related to concepts such as the Internet of Things or Big Data, is becoming a reality. It gives the opportunity to implement effective programmes for technical maintenance of machinery and equipment. Artificial intelligence solutions can achieve longterm financial benefits by minimising the costs of technical maintenance and production as well as maximising the productivity of industrial installations. However, does the industry know how to maximise the potential that modern technology offers? DATA ACQUISITION The genesis of the fourth industrial revolution is closely related to the dynamic increase in the amount of data generated and collected by industrial plants – process, operational, economic, environmental and so on. According to the McKinsey report on Big Data, industrial plants generate more data than any other source. Other reports suggest that more than 90% of all current data in the world has been generated in the last two to three years, and the development of the technology that collects this data is constantly increasing. The obvious task that entrepreneurs face is to extract as much as possible from this data, because – as research shows – companies that treat data as an important value in their strategies are much more effective than their competitors. Appropriate analysis of the collected data can help a company to implement an effective machine park management programme and consequently increases production profits and minimise PAGE 82

operating costs. For this reason, in the industrial operational excellence scenario, ready-to-communicate sensors and efficient data acquisition systems play an important role. Appropriate measurement of monitored objects gives full control over the machine, including detecting and predicting unwanted behaviour such as failure. The correct collection of production data is one of the most important elements of modern enterprises, enabling the implementation of solutions offered by the fourth industrial revolution.

‘The fourth industrial revolution gives the opportunity to implement effective programmes for the maintenance of machinery and equipment’

This information can then be used to make optimal service and operational decisions. In recent years there has been a significant breakthrough in the operation of predictive maintenance systems. This was caused by applying the latest scientific achievements in the field of artificial intelligence – the so-called deep learning. Deep learning methods, which were previously applied to image and sound analysis, now guarantee unprecedented predictive possibilities thanks to feature extraction for problems. This is an important qualitative leap in this field. PdM solutions, which are based on deep neural networks, can accurately assess the current technical condition of machines and predict their failures with a specific time horizon, thus reducing technical maintenance costs and maximising production profits. What was previously impossible is now achievable using deep neural networks. ANOMALY DETECTION

PREDICTIVE MAINTENANCE Predictive maintenance (PdM) is a modern approach to the technical maintenance of production resources. This approach is growing in popularity in the oil and gas industry due to the significant efficiency gains it offers. This approach arose as a result of the rapid development of techniques in predictive analytics (statistical modelling, machine learning, and data mining) and the increase in computing power. Utilising this approach allows for effective analysis of historical and current data to make predictions for future, unknown events. The basic approach for maintenance using predictive analytics is the analysis of historical service and operational data and searching for patterns that explain the phenomena of failure occurrence to ultimately predict them in the future. Searching for these connections is called the algorithm learning process, and the relationships themselves is known as the predictive model. The next stage is using the constructed predictive model to estimate the probability of failure of a given machine over a selected time horizon based on current process data.

Anomaly detection uses algorithms to detect anomalies in the operation of production resources. It can implement predictive maintenance strategies for machines that do not have substantial historical data or those where there has never been a failure or incorrect behaviour. In both cases there is no opportunity to train artificial intelligence algorithms based on historical data. This solution involves identifying patterns that occur during the correct operation of the machine, as well as identifying abnormal behaviour. These algorithms are used as additional mechanisms to detect irregularities in device operation. They work in parallel with methods of failure prediction and often provide a source of knowledge about emergency events for the purpose of building predictive models. PRESCRIPTIVE ANALYTICS AND PROCESS OPTIMISATION Despite the amount of possibilities offered by predictive analytics, it is possible to further maximise profits and minimise costs through prescriptive analytics. In this approach, predictive maintenance

TECHNICAL FEATURE DIGITAL TRANSFORMATION

CASE STUDY The task was to predict the failure of an unstable steam turbine where there was a vibration jump at certain points. If the vibration exceeded a certain level, then, regardless of the operation, the turbine was deemed to be broken. The steam turbine would then need to be stopped and the whole process restarted. This resulted in large losses caused by high fuel gas consumption. The task was to predict when this threshold would be exceeded up to five minutes ahead. The data was divided into teaching sets – for model learning and validation, for choosing optimal hyper parameters, and a test for final evaluation. The cost of unnecessary reaction is higher than the cost of breaking the turbine. It was much more problematic to get a good model where the number of unforeseen failures and the number of false alarms would be very small. The biggest challenge with creating models was the irregularity of operator interventions. Therefore, it was agreed that the operators would not interfere with the machine’s operation before reaching certain level of vibration. In order to reduce false alarms, six additional variables were added, which were excluded by the feature selection

The models were built including these preconditions and tested on the system. The prediction accuracy reached above 90% for all the cases. The results obtained for the data set where all records were located, and the moments of failure were automatically determined were satisfactory. The model predicted most failures but generated many false positives. To overcome this, a set of actions were implemented. In addition, in order to immunise the model against changes in the distribution of the studied time series, the model was regularly recalibrated. This allowed for 95% accuracy in prediction and helped to achieve €2 million savings per annum.

BENEFITS OF IMPLEMENTING PREDICTIVE & PRESCRIPTIVE MAINTENANCE SOLUTIONS

CONCLUSION Data is currently collected using thousands of sensors in various condition monitoring and IT/OT systems in every enterprise. Multi-level analysis of historical and current data using artificial intelligence tools gives the opportunity to search for relevant relationships that can explain the nature of occurring phenomena and make predictions for future, unknown events (predictive analytics). With this knowledge, operators can use it to optimise the operational processes of monitored objects (prescriptive analytics). Such a comprehensive approach significantly increases the company’s performance and positively influences its financial results. The use of methods based on deep learning allows for the implementation of self-

High

Implementing the prescriptive analytics approach could help enterprises anticipate potential failures and react faster just before a threat occurs. A holistic approach guarantees high accuracy and reliability of models as optimisation methods, e.g. proprietary modifications of classic optimisation algorithms, work here. Prescriptive models based on artificial intelligence give the opportunity to optimise resource exploitation processes.

learning mechanisms that guarantee the continuous improvement of model quality and adaptation to changes in the enterprise without the need for the costly repetition of the implementation process.

• Reduction of failures and unplanned downtime • Increasing technical readiness (availability) • Minimisation of technical maintenance costs • Minimising losses associated with unplanned machine downtime • Increased awareness of maintenance services • Extended asset life cycle • Optimisation of service and production processes • Increased production profits • Easy and immediate access to knowledge about the operation of machines in the company • Fitting in with the trends of the Industry 4.0 concept • Comfort and safety Reliability Solutions is an expert in the field of advanced data analysis, with a focus on predictive analytics for industrial sectors, including predictive maintenance and prescriptive analytics. The company has developed a revolutionary PdM class system called RSIMS, harnessing the power of artificial intelligence and deep learning. For more information This article was written by Piotr Lipnicki & Paweł Morkisz, Reliability Solutions. www.reliasol.pl

Predictive Solutions/Prescriptive Maintenance

Optimalisation

Benefits

Optimal control procedures consider the current technical condition of machines, the current price of utilities and manufactured products and resources and their expected lifetime, which further increases their effectiveness. Pumps and compressors are particularly sensitive areas in the oil and gas sector, particularly in the tank terminal sector where a possible failure could result in costly consequences.

algorithms, but according to experts they may have been related to vibration spikes. Records that belonged to people other than those related to the task being solved and could interfere with the models were removed from the teaching set.

Prediction

Monitoring

Low

is the first step to predict upcoming events. This knowledge can be used to simulate various scenarios, predict their results and make optimal decisions. This approach is prescriptive maintenance and deep machine learning played a crucial role in its development. Based on deep neural networks, metamodels of entire installations in companies can be built that, after the validation stage, give the opportunity to optimise modelled processes.

Scheduling

Low

Predictive Maintenance

Condition-based Maintenance

Prescriptive Maintenance

What should I do?

What will happen?

Why did this happen?

What happened?

Solution Complexity

High

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TECHNICAL FEATURE ASSET MANAGEMENT

A REVOLUTION IN ASSET MANAGEMENT populate systems autonomously. This provides a live feed of data such as temperature, pressure, level or position reducing human interaction in manually gathering data.

A RADICAL cloud-based software system has harnessed the power of laser scanning technologies with custom cloud applications to produce a system to seamlessly and effectively manage valuable terminal assets. Drawing on its 40 years of experience in automating continuous and batch processes, A3D has developed a product that reflects an understanding of the engineering needs of the industry to ensure effective terminal operations. Working with Lizard Designs, A3D’s 4D Lizard enables the linking of its 3D technologies to clients’ management systems. LOCATING THE CORRECT ASSET IN AN ASSET MANAGEMENT SYSTEM Typical asset management software requires an asset number/code to locate asset details. The asset number is located either from piping and instrumentation diagrams or from visiting site and locating the asset to record its physical asset tag. Traditionally, this raises issues with P&IDs not being up to date and site tags being broken, painted over or lost. Locating an asset is one of most important factors – not only do professionals want to speed up the process of locating correct asset codes or locations, but to reduce the chances of incorrectly identifying asset as a result of human error. Speeding up the process of locating an asset’s code or physical location provides the end user more quality time with the set task. Without an asset number, personnel are

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unable to research anything as the asset management system has no navigation facilities incorporated. And worse, if the asset code cannot be identified, typically people create a new code for the asset, with all prior asset history and data lost. CURRENT ISSUE: TIME TAKEN IN COLLECTING ASSET DATA Traditional methods used to collect the site data, necessary for populating systems such as asset maintenance, are time consuming on resources. This heavy resource demand will impact on normal duties relating to the operation of a terminal and will involve the updating of paper records. These records requiring printing to use on site before results are collated on return from site survey. Technologies such as IoT and site instrumentation allow site data to

Beyond IoT and site instrumentation, manual systems including permit to works that are typically in paper form can become digital forms requiring less storage with the data being available for ongoing analytics. A3D can provide ATEX-rated tablets to collect data from site equipment with NFC tags that will automatically correctly identify the correct asset, display it within the company’s 3D model or PID files and give access to the asset management system, removing the need for paper completely. Servicing update information can be updated directly to the ATEX-rated tablet, which in turn updates the assert management system. ACCESSING ASSET DATA The simple flow diagram (Figure 1) represents an all too familiar tale, outlining the process required to access asset data within an asset management system and updating the data. Operators, having recorded asset identity on site, cannot use the information until they return to their office-based computer. Unless operators can remember every detail of those assets requiring interrogation, further site visits are required. This process is further compounded when consideration is made to the limited user access and requirements to have specialist software installed to view data, such as Autodesk products. Using 4D

TECHNICAL FEATURE ASSET MANAGEMENT Lizard removes the need for software licenses and allows the user access to data without training on the individual systems. No additional computers and software licenses are required and there are no individual training requirements for each of the connected asset systems. 4D Lizard provides the access to all asset systems, displayed via the 3D model and PID files, using simple, easy to use pages. DATA LOCKED WITHIN MULTIPLE SYSTEMS Terminals typically run with multiple software systems. These can include finance, SHE, asset maintenance, document, quality, scheduling, monitoring, work order and stock control systems. Historically this could result in a terminal running more than ten systems, each being essential to the terminal’s operations but likely each holding their own unique data for handling terminal assets. Their exportable reports would be limited by the data available in each respective system. Over time, duplication of functionality will occur across the varying systems and each system would require licensing, training and hardware to operate.

DATA VISUALISATION The way data is presented and visualised influences the benefits operators can gain from its use. For example, a maintenance management system schedules maintenance activity displaying only an asset code and date. However, displaying this via 4D Lizard using the 3D model file, an operator has a visual display of the assets along with their respective locations. By adding a simple 4D Lizard routine with a corresponding colour code based on when those assets are due an inspection, the operator can clearly visualise the data and see where and which assets are due for an inspection. Using 4D Lizard, this data gathered from multiple sources can now be investigated allowing key decision makers to analyse the findings to recognise failure patterns and move towards predictive maintenance techniques. It has been proven that the human brain’s ability to interpret data will be quicker with good data visualisation compared to traditional database tables. In turn, operators can analyse the data faster and predict maintenance quicker and more accurately. DEVELOPMENT OF 4D LIZARD

Clients wanting to utilise A3D’s 3D process models and smart PID files suffered from a lack of necessary hardware, software and in-house resource skill set. They wanted open access without restrictions and access via a cloud-based platform became the obvious solution. A3D’s partnership with Lizard Design introduced a specialisation in custom cloud applications to complement the company’s services. Not only could Lizard Design upload A3D’s 3D models and PID files into the cloud, it could also transfer the model property data.

This data provides the complete identity for each model component including size, specification, service, materials, rating etc. This breakthrough led to the development of API software, enabling client asset information held within their management systems to be linked to appropriate assets within A3D’s 3D model and PID files. In short, these files would become live. From this milestone, client ideas on new programmes running within the 4D Lizard software using this new-found connectivity started to be received and every proof of conception presentation with clients resulted in more ideas. An engineer recently said: ‘4D Lizard is a fantastic system that will improve efficiency, reduce cost and revolutionise maintenance for the tank storage industry. 4D Lizard has the ability to

slingshot petrochemical and storage tank maintenance management into the modern day.’ This served to demonstrate the restrictions on engineering in using their existing management systems, summed up by the statement, ‘management systems were designed by accounts for accounts’. Utilising asset information held within these management systems but displayed in a 3D model/PID format proved to be just what engineers were looking for. CONCLUSION 4D Lizard was created to help clients: • Locate assets quickly • Access data freely • Access data from different locations/ sites • Analyse data found across multiple systems A3D has more exciting developments arriving shortly, with systems such as augmented reality, modern ATEX-rated tablets and mobile equipment, integration with IoT systems and the use with drones for autonomous 2D and 3D site updates. For more information This article was written by Lewis Boxer, technical director, 4D Lizard, part of the Advanced 3D Laser Solutions Group. t: 01245 407552, m: 07974 835571, e: lewis@4dlizard.com

01 3D model of a terminal as seen in the 4D Lizard software 02 Flow diagram documenting the current process of accessing an asset’s data 03 4D Lizard function diagram 04 4D Lizard asset information and dashboard 05 4D Lizard asset information and dashboard

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TECHNICAL FEATURE TANK MAINTENANCE

TACKLING THE UNIQUE CHALLENGES PRESENTED BY TANK OUTAGES IN THE grand scheme of refinery and petrochemical plant turnarounds, tank outages are often seen as a lesser priority. While this may seem to make sense economically, it has led to an industry-wide mismanagement of tank assets. For many tank outages, late engineering and material ordering, delays in permitting, and a general lack of urgency among team members are regular occurrences. At some sites, the tank outage team is a subsidiary of the maintenance department. However, Asset Performance Networks (AP-Networks) has observed that, increasingly, these events are falling under the direction of the site turnaround manager. This shift has shone a spotlight on the shortcomings of tank outage planning and preparation, especially when compared to the maturity of the plant turnaround sector. While plant turnaround organisations and work processes have, to a large extent, become standardised across industry, the same cannot be said about tank outages, an area in which many sites tend towards an ad hoc methodology for planning and execution. One of the more striking differences between tank outages and plant turnarounds lies in scoping. Over the past decade, industry, backed by data, has realised the importance of freezing scope early enough in the planning and preparation phase to ensure that work packages will be completed on time, material will be ordered and delivered, and all pre-turnaround fabrication work will be completed prior to oil out. For high complexity turnarounds, this scope freeze typically takes place at T-9 months. With the clients that AP-Networks has worked with in the tank outage sphere, the concept of scope freeze is lukewarm at best, with some teams choosing to begin the scoping process only after a tank has been de-inventoried, cleaned, and inspected. This begs the question: What, if anything, can tank outage teams learn from plant turnaround teams? THE VITAL IMPORTANCE OF A WORK PROCESS In the quest to become more predictable and competitive in plant turnarounds, industry has turned to the adoption of

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company-wide standard work processes that govern and direct planning and preparation. These work processes take a multi-phased approach and include milestones such as allocating resources to the turnaround team, developing scope, planning work packages, awarding contracts, and procuring materials. Ultimately, these work processes lead plant teams through turnaround execution and any post-turnaround work or reports that must be filed. The road to developing an effective turnaround work process is not an easy one. Figure 1 shows the path that many companies take from out-ofcontrol performance to competitive, predictable outcomes. As shown in Level IV, companies tend to recognise the need for standardisation only after performance has gone off the rails. This realisation often comes when reviewing internal performance or following a particularly poor outcome. As a companyâ&#x20AC;&#x2122;s standard work process begins to be developed and adopted, turnaround performance begins to become more predictable, as shown in Levels III and II. In these stages, sites have recognised the benefits of standardisation, planning, and preparation. These sites have come to understand that value is created early in the planning process, causing them to move away from an ineffective but common strategy of relying on execution to make up for any planning deficiencies. With proper leadership focus, companies can make the final leap from predictability

to competitiveness, as shown in Level I. The bedrock of these Level I companies is an effective work process. The three critical aspects to making a work process effective are: organisational buy-in, leadership support, and successful deployment and implementation. CREATING A TANK OUTAGE WORK PROCESS If plant turnaround teams can successfully leverage a turnaround work process to become more predictable and competitive, then what about tank outage teams? In mid-2016, AP-Networks was approached separately by two clients who wanted an answer to that very question. In both cases, plant turnaround managers had suddenly found themselves inheriting the tank outage programme and quickly recognised the need for change. AP-Networks partnered with these clients to tackle the shortcomings of tank outage planning and execution and develop a path forward. AP-Networks took its industry-standard plant turnaround work process as a starting point and adapted it to solve the unique challenges presented by storage tank outages. One of the key adaptations came from recognising the difference in interval, the time between events. Most standard plant turnaround work processes contain a long-range planning phase to accommodate the traditional three to five-year interval between turnarounds. Tank outages, in contrast, are performed much more frequently.

TECHNICAL FEATURE TANK MAINTENANCE

TANK OUTAGE WORK PROCESSES

To address this, AP-Networks developed an annual tank process, which allows sites to manage the high-level strategies and long-range planning activities that govern the overall tank maintenance programme. This annual process enables sites to track the ordering of bulk and long-lead materials needed on a yearly basis, and to maintain any financial planning information developed over the course of the year. While the annual tank process helps to manage the overall tank maintenance programme, an individual tank process provides a more detailed strategy for planning and preparation divided into six phases. This process begins 12 months prior to a tank being taken out of service and concludes with the completion of post-outage reports approximately six weeks after a tank is returned to service. The individual tank process contains approximately 100 activities tailored to the specific scope of the tank outage. With the input of a few key details, this tailored process provides step-by-step activity guidance to help sites define and plan the scope of work. The process outlines the steps required for scope development, contractor engineering, inspection plan creation, and more. WORK PROCESS IMPLEMENTATION Simply having a standard work process is not enough to achieve successful outcomes. AP-Networks has frequently observed sites where the work process sits on a shelf, rarely consulted. To unlock success, a work process must be introduced properly, embraced by the organisation, and deployed in such a way

that it serves as an interactive tool, one that can be progressed and tracked in real time. For this reason, AP-Networks uploaded the annual tank process and the individual tank process into NaviTrack, the company’s web-based work process deployment tool. This tool is housed on the Turnaround Network, found at www. Turnaround-Network.com, part of the APNetworks software toolset. This toolset is in use at more than 400 facilities in over 50 countries throughout the world, including more than 80% of US refineries. This brought the tank outage work processes into a digital environment, one where activities can be assigned to functional groups as well as individual team members. These team members are responsible for completing their activities in accordance with the work process and updating their progress within the NaviTrack tool. This strengthens adherence to and compliance with the work process. NaviTrack contains built-in reports and benchmarking metrics that provide site and corporate leadership with an overall view of work process progress and compliance, updated in real time. Armed with this information, leadership can take corrective action in a timely manner. HOW DO YOU KNOW IF A SITE IS COMPETITIVE? Perhaps the most prominent question that AP-Networks clients want answered, regardless of the type of turnaround, project, or outage being executed, is this: How well do we perform in relation to the rest of the industry? This

question is integral to improvement efforts. It requires a measure of baseline performance to serve as a starting point, along with metrics designed to quantify and qualify results. After all, without this data, how can you evaluate the true effectiveness of a work process - or of any preparation efforts? The AP-Networks Turnaround Database is the result of nearly two decades of benchmarking turnarounds from the onshore and offshore upstream, gas, refining, chemical, and power industries. With practices and outcomes data from nearly 2,000 unique turnarounds, it is the largest and most comprehensive collection of turnaround data in Industry. This data underpins the work processes developed by AP-Networks. In response to the industry’s increasing focus on tank maintenance and spurred by requests from several clients, APNetworks has launched the Tank Outage Benchmarking Study. It seeks to answer the question, ‘Are your tank maintenance outcomes competitive?’ The study will look to identify the drivers of high discovery scope during tank outages and best practices for tank outage planning and execution. It will also establish industry average and top quartile metrics around tank outage performance to provide a definitive baseline for benchmarking and improvement. ACHIEVING EXCELLENCE IN TANK OUTAGE PERFORMANCE Industry-wide, tank maintenance is still an immature area, with many sites only recently recognising the opportunity for improvement. But with the lessons learned in the plant turnaround sector, sites can make the jump to competitive, predictable tank outage performance in a fraction of the time. The key will be for leadership to embrace the use of standard work processes and benchmarking. AP-Networks stands poised to aid sites in their journey to tank outage excellence. For more information

This article was written by John Camp, deputy director, EMEA, AP-Networks. www.ap-networks.com. For more information and to register interest in the Tank Outage Benchmarking Study email tankbenchmarking@ap-networks.com.

01 Figure 1: The performance improvement journey 02 Figure 2: Tank outage work processes 03 Figure 3: Individual tank process – phased approach

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Double Block & Bleed service is a challenge in many applications, as drop-tight sealing on both the upstream and the downstream side is essential in many sectors like: • Tank Storage • Loading/unloading Stations • Multi-Product Manifolds • Metering Stations • Aviation fuel Services • Custody Transfer Units • Offshore Platforms

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TECHNICAL FEATURE SECONDARY CONTAINMENT

HARNESSING INNOVATION TO ACHIEVE PERFECT STORMWATER DISCHARGE 01

ONE of the largest integrated midstream companies in the US implemented the latest technological innovation in stormwater discharge to improve how it operates its network of pipelines and more than 100 liquid petroleum storage terminals. THE CHALLENGE The company’s core values include a commitment to environmental stewardship and regulatory compliance. To align his operations with these values, a regional manager decided to develop a new operational programme with the following objectives: • Minimise labour costs associated with manual draining of secondary containment stormwater • Constantly filter petroleum ‘sheens’ from the stormwater • Eliminate the need to hire expensive vac trucks to pump, haul and treat ‘sheeny water’ • Institute a failsafe system to prevent petroleum spills from escaping secondary containment pads He says: ‘Over the past 20 years, our industry has experienced significant technological improvements in how we operate our pipelines and terminals. However, I was frustrated with the lack of innovation in one seemingly simple daily task – manually draining stormwater from secondary containment pads.’ The manager oversees scores of secondary containment pads surrounding pumping equipment, pipeline pigging stations, backup

generators, additive tanks and electrical substations. These pads range in size and sump capacity from 20-gallon steel skidmounted units to concrete containment pads with more than 10,000 gallons of sump capacity. After more than one inch of rainwater accumulates in a containment (which occurs every nine to 10 days in his territory), the containment pads need to be drained out. The main reason is that one inch of rainwater will take up between 10% and 20% of the sump capacity of the pad. If the stormwater is not removed from the sump, there would not be enough capacity in case of a significant spill inside. Each of these containment pads have manual valves to release excess stormwater. The discharge pipes range in size from three-quarters of an inch to four inches. However, the process for manual draining is the same for every containment: 1. Before opening the valve, check the stormwater for a visible sheen 2. If there is no visible sheen, the operator can open the valve 3. Depending on the pipe size and amount of water, the draining process can take between five minutes to an hour for each containment 4. Usually the operator has between five to 30 containment pads to drain on the same day. Usually they open each valve and let it drain while going around to open and drain the other pads 5. On most sites, this process requires a lot of walking over dikes, stairs and walkways as well as ducking under other pipes to reach various pads.

Experienced technicians try to develop a routine to do the process efficiently. But it’s nearly impossible to drain all the pads in a linear path without having to stand and wait for the water to run out in some of the slower-draining pipes. 6. As a final step, the operator must make sure all the valves are closed again to protect against a spill escaping and unfortunately some valves do not always get closed. The manager explains: ‘We must perform daily inspections, whether it has rained or not. As a result, our team is used to walking through the entire terminal, but the process can be 200% to 500% longer after a rain. Even though it is just a cost of doing business, I always believed there had to be a better way. ‘However, the problem is further compounded if we discover an oily sheen on the containment stormwater. It does not take much petroleum to make a sheen – just a few drips from a valve, fitting or hose,’ he notes. As a result, the process is more challenges as the operator cannot discharge the contaminated water. Therefore, the following steps must be taken: 1. Call a vac truck to pump out the containment 2. Wait for the truck to show up 3. Meet the truck operator for a safety briefing 4. Accompany the vac truck to contaminated pad(s) 5. Supervise the pumping 6. Escort the driver back to office to complete sign out

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TECHNICAL FEATURE SECONDARY CONTAINMENT 7. Receive and approve the invoice (usually more than $1,000)

THE BONUS

8. Repeat the process the next time there is a sheen This process can take up to three hours of a technician’s time. To counteract this labour-intense manual draining a few companies have developed petroleum filter valves. These valves are filled with a polymer that has two important properties: • The polymer allows water to filter through on a continual basis and encapsulate an oily sheen • In case of an accidental petroleum spill, the polymer would swell up and shut off all flow In theory it is a great idea. But, in practice, these petroleum filter valves have four main drawbacks: 1. Bulky: They take up a lot of space. Unfortunately, most containment pads are in tight quarters 2. Slow: Each rain event only provides minimal head pressure needed to facilitate the filtration process 3. Sediment: Spalling concrete, decaying leaves, algae, rust and paint chips clog the filters prematurely 4. Expensive: They range in price from $750 to more than $2,500 each The manager says that two different versions of petroleum filter valves were initially used. ‘They worked fine for the first week or two but by the end of the first month, their flow rates dropped to a trickle and our containment pads filled up with stormwater. ‘Changing out the petroleum valves at $1,000 each was cost prohibitive. We decided to go back to the old manual way of draining. However, when we heard that HalenHardy was working on a new petroleum valve and pre-filter system design, I was interested.’ THE SOLUTION Talking about the company’s solution, Donny Beaver, partner at HalenHardy, says: ‘Our development team was originally challenged by a large electric utility to see if we could help them prevent their $2,500 petroleum filter valves from clogging. ‘We got hold of about a half dozen plugged valves and discovered that more than 90% of their clogging was due to sediment, not oily sheen. So, we focused on solving the sediment problem first.’ However, the sediment proved to be more problematic to control and capture than the company originally thought. ‘We live in the mountains of Pennsylvania and we have dramatic seasonal changes from the

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torrential April rains, the pollen in May and June, the scorching July sun, the falling leaves in November to the deep freeze of winter. Concrete cracks and chips. Leaves decay. Algae grows in containment shaded by pipes and tanks. It seems like a never-ending barrage of detritus in a stormwater soup.’ Fortunately, the terminal operator had a containment pad located a short distance from the development team’s lab and they were able to gain daily access to the pad and experiment in real-world conditions. Pat Healey, R&D team specialist, adds: ‘We try to simulate mother nature in the lab, but we prefer to develop our products on actual job sites. As fate would have it, we picked the rainiest year on record for field testing. It was both horrible and great at the same time. We learnt so much in record time.’ THE RESULTS It became evident early on in the process that a single-stage filter (like those in other petroleum valves) was not the answer. After testing more than 80 different products in hundreds of different combinations, the research team settled on a four-stage pre-filter system.

While performing the tests the research team also discovered a solution to reduce the size of petroleum filter valves by 400% and increase the filtration rate fivefold. ‘Containment pads offer very low head pressure as rainwater pours in. The old filter valves were designed for higher head pressure,’ Beaver says. ‘We did some innovative tweaking of the polymer media sizes, shapes and layering to allow us to get outstanding flow rates at just one inch of head pressure. And we still maintain a failsafe valve shutoff in case of spills. It is a win-win.’ The manager concludes: ‘Halen Hardy tested on our site in the worst conditions for eight months before they offered final recommendations. Then they gave us two options: 1. A do-it-ourselves option with all the training and support we would need 2. A monthly maintenance plan where HalenHardy does all the work ‘We opted for the service agreement and after six months it’s working like a charm. We even had an accidental overnight spill of about 50 gallons of diesel at one of our pig launching pads and the Drainiac filter valve shut off, just like it was supposed to. Not one single drop of diesel escaped the pad. I couldn’t be happier.’ For more information This article was written by Donny Beaver, CEO at HalenHardy, DBeaver@HalenHardy.com. www.Drainiac.com

Stage one: Spilltration pads to capture petroleum leaks and drips at the source of valves and fittings. This drastically reduces the oily sheen upstream from the containment outlet. Stage two: Outer barrier filter socks to slow down the stormwater, stop the debris and cause 80% of the sediment to ‘drop out’. Stage three: An inner filter sock barricade to remove fine sediment and suspended solids (and hold the final filter fabric securely in place).

01 It is illegal to release stormwater with an oily sheen

Stage four: A proprietary filter fabric to capture super-fine suspended solids and additional oily sheen.

03 A multi-stage prefilter system protects petroleum filter valves

Healy says: ‘We discovered these four stages of pre-filtration extended the life of petroleum filter valves by 200% to 300%.’

02 Sediment and oily debris cause petroleum filter valves to fail prematurely

04 Innovative petroleum filter valve encapsulates oily sheens even under very low head pressure 05 Outer barrier filter socks cause 80% of sediment to ‘drop out’ before it hits the drain

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TECHNICAL FEATURE AUTOMATED DRAIN VALVES

SAFELY AND AUTOMATICALLY DRAINING WATER FROM PRODUCT STORAGE TANKS THE REMOVAL of water from hydrocarbon products in storage tanks has been a constant problem in the oil industry. This problem is still largely solved by nothing more advanced than an operator opening the drain valve and closing it when he sees the appearance of oil in the water. Discussions were held with operations supervisors, oil loss and environmental engineers, and off-site designers. An increase in the awareness of the problems associated with water in tankage was evident after the discussions. Growing environmental pressures, particularly in the US and EU, resulted in increased interest in the issue. It also became apparent that there are wide differences in the way tanks are managed – not only between different oil companies but also between refineries owned by the same company. Some companies are aware of the need for a consistent approach to tank management and are setting internal standards on how tanks should be gauged for oil and water and how they should be manually drained. Some of the refineries and storage terminals surveyed are testing techniques other than the experienced eye of an operator to determine when oil and not water is draining from the tank. Most of the oil companies require an operator to be present when the water is drained. But these companies are also concerned about the toxic fumes that can be released when draining, say, a benzene storage tank. Other companies do not insist on the presence of an operator during the entire time a tank is being drained. The survey revealed that the presence of water in tankage caused the following problems: • Product volumetric and massmeasurement errors • Product degradation caused by microbial growth • Corrosion of tank-bottom plates • Manpower involvement • Oil loss • Soil and air pollution • Potential of labour intoxication

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MEASUREMENT ERRORS An accurate mass-balance measurement system is essential in determining oil losses and pinpointing where they occur. With the exception of some plants where hydrostatic tank gauging is installed, the calculation of the mass of oil stored is based on oil level measurements. Tank oil level measurement to an accuracy of 1/16 inches is claimed by some level gauge manufacturers in Europe. However, if water is present in the tank, the accuracy to which the oil-water interface can be measured (surely no better than 1/2 inches) is more relevant than the accuracy of the oil level measurement. Thus, where water is present, the accuracy to which the mass of oil stored can be calculated is related to the combined inaccuracies of the oil level and oil-water interface measurements. Oil level measurement is affected by water lying on floating roofs. Many oil companies leave roof drain valves closed and open them only after rain has ceased falling. Two inches of rain lying on the floating roof of a tank containing gasoline will cause an apparent increase in product level of about 2 1/2 inches. It was surprising how many operators and instrument engineers were unaware of this phenomenon and the effect it can have on mass-balance calculations.

Hydrostatic tank gauging is becoming widely used in the US at distribution terminals. However, in tanks using this form of measurement, water causes similar problems in calculating tank volumetric or mass contents. However, if a pressure transducer is installed to counteract the mass of the roof, then at least the effect of water on the roof can be nullified. The elimination of water in the tank and on the floating roof will reduce measurement errors considerably. MICROBIAL GROWTH Several sites mentioned the contamination of products caused by microbial growth. The presence of free water in storage tanks creates a fertile place for these microorganisms to grow, causing product degradation. Diesel and light heating oils are more likely to attract microbial growth than aviation fuel. Treatment with biocides is usually successful, but the use of biocides on aviation turbine fuels is not permitted if the ASTM specification D1655 is to be met. Consequently, the elimination of water from tankage is highly desirable to prevent product degradation and is essential in the case of aviation turbine fuels. The elimination of water in the tank will reduce prevent microbial growth considerably.

TECHNICAL FEATURE AUTOMATED DRAIN VALVES CORROSION Corrosion of the bottom-plates can occur as a result of the action of air entrained in the free water. This corrosion is exacerbated if microorganisms are present.

Micro-organisms feed off sulfates in the oil and are reduced to sulfites, which cause sludges and slimes to form. These in turn cause accelerated corrosion of the tank bottom plates. The cost of taking a tank out of service to replace corroded sections, including the repair work itself, can be excessive. The elimination of water in the tank will reduce corrosion considerably. MANPOWER INVOLVEMENT The quantity of water to drain is usually determined by hand dipping to find the interface level (some automatic tank level gauges can identify and measure the interface level). The length of time it will take to drain is based on the head of liquid and operational experience in draining the particular tank. In some cases, tank draining is a fairly lengthy process and may necessitate the operator’s presence during the entire operation. The point at which oil, and not water, starts to drain is not easily determined. No simple test is available to assist the operator, who depends upon their sense of smell and sight. The point at which the transition from water to kerosene or jet fuel occurs is particularly difficult to assess. In the case of jet fuel, it is obviously essential that all water be drained. Therefore, a liberal quantity of jet fuel may also be drained to be on the safe side. Tanks that suffer from differential settlement and have an apex-up bottom configuration may need to be drained at more than one point. Draining is a tedious task for the operator, particularly when they must wear a face mask while draining water from tanks containing toxic products. The automatic and unattended elimination of water in the tank will prevent potential labour intoxication. OIL LOSS At the conclusion of draining water from a tank, the drain line is full of oil. The next time water needs to be drained; this dead leg of oil must be purged. If the tank has an apex-up bottom configuration, the drain line length will be short and the quantity of oil to be purged will be relatively small (5 US gallon- 18 litres). However, a large-diameter tank with an apex-down bottom may have a 4-inche, or even 6-inch drain line

Diagram indicates a broken drain pipe situation

extending 75 ft into the tank. The volume of oil that must be purged may exceed 100 US gallon (380 litres). How much of the oil contained in the dead leg can be recovered? The answer depends on whether the refinery had installed an open or closed sewer system and the type of downstream separationrecovery system used.

Coast refiner has budgeted approximately $10 million for the work. But such a solution will cause more oil to be reprocessed because the operator must be able to see the oil start to flow through an armored glass section of pipe before closing the drain valve.

In Europe, the predominant answer was that when the product is gasoline and an open sewer system is used virtually none is recovered. The gasoline evaporates into atmosphere.

Without the sense of smell and touch, the ability of the operator to assess the transition point will be reduced. Further, the glass section of pipe will soon become opaque, requiring removal, cleansing, and the opportunity for more spillages.

If the survey was representative of the industry, it would appear that after the oil required in furnaces for reprocessing is taken into account the net recovery of gasoline, for example, is only 50%.

Spills to the open ground must be dug out and incinerated in some states in the US. The cost for this is estimated to be $5,000 or more per tonne of contaminated earth removed.

But the major losses occur as a result of operator errors or equipment failure. All refinery off site personnel were able to give details of at least one occasion when a water drain valve was closed too late. Some had experienced the failure of the articulated roof drain. One of these failures had caused a catastrophic problem because the roof drain valve had been left open. Draining the water out through an automatic drain valve equipped with a manual pump for returning the product from the dead leg line will dramatically reduce the amount of dead oil and will reduce operator errors. ENVIRONMENTAL Legislation introduced recently in the US and EU has concentrated the minds of offsite designers to devise schemes to prevent oil spills onto open ground. Solutions involving hard piping of tank-bottom drain lines to separation equipment can be very costly – one Gulf

AUTOMATIC WATER DRAINERS Based on the survey findings it is essential that product storage tankage be operated dry. Water should be evacuated from the tank as soon as it becomes free. If a packaged system could be designed to operate automatically, with low maintenance and absolutely no possibility of oil being drained in a failure mode, then its benefits would be considerable. The estimated cost savings from a reduced oil loss is approximately $30,000/year for a tank in catalytically cracked naphtha service. Other benefits include: • Improved mass-balance calculations, • Reduced tank corrosion, • Elimination of product degradation due to microbial contamination, • Reduction in manpower requirements, • Elimination of oil spills caused by operator error. The Eco-Valves system was designed for

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TECHNICAL FEATURE AUTOMATED DRAIN VALVES the safe, automatic drainage of water from storage tanks.

The system is designed to operate at 52 US gallons/minute (12,000 litre/hour) and discharges through a 2-inch line. The low flow rate is always adequate and exceeds by far the rate at which water becomes free in the tank. The automated drain valves are mounted on the flange of the existing mechanical manual drain valves of the storage tanks. ROOF DRAINS During the survey, the position of roof drain valves was noted. On some tanks the valve was closed, on others open, and some even had the valve partially opened. All operations staff were concerned that a failure of the articulated or flexible roof drain line could occur when the drain valve is open. Such a failure was responsible for the catastrophic spill of oil into the San Francisco bay several years ago. Many failures are not publicly reported. Those refineries whose operating standard is to leave the drain valve closed run the risk of sinking the roof after an extended rainstorm. Most floating roof tanks, however, are designed to withstand up to 1 ft of water. But those that have the valves closed in harsh environments run the additional risk of the water freezing in the

drain line and cracking the knuckle joints. Automatic safety roof drain valves will prevent oil spills and system damages.

01 Bottom drain 02 Roof drain 03 Roof drain automatic shutoff valve

For more information

04 Tank bottom drain valve

This article was written by Reuven Perez, engineer, at Eco-Valves. For technical data visit www.eco-valves.com

DCM EMBA METERING & CONTROL NV

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contact@dcmemba.eu I www.dcmemba.eu

TECHNICAL FEATURE FIRE PREVENTION

THE OPPORTUNITIES FOR NEW ECO-FRIENDLY FIREFIGHTING FOAMS 01

SINCE the 1970s, PFAS (per and polyfluoroalkyl substances) have been identified as toxic fluorinated chemical compounds and described as â&#x20AC;&#x2DC;forever chemicalsâ&#x20AC;&#x2122; meaning they stay permanently in the environment and contaminate drinking water. PFAS are used in firefighting foams in tank terminal fire protection systems. PFAS IN FIREFIGHTING FOAMS ARE CONTROVERSIAL PFAS are non-biodegradable and extremely persistent in the environment and, consequently, they result in groundwater contamination. These chemical components used in firefighting foams are also bioaccumulative in human blood and toxic for animals. With an immediate and long-term effect in both humans and animals, fluorinated compounds are progressively banned. The growing health and environmental concerns regarding PFAS use are evolving fast. The EU banned PFOS in 2011. Following studies by the European Chemicals Agency (ECHA), the EU

recently banned the use of PFOA and is launching a new regulation to phase-out every PFAS in firefighting foam. In addition to these international regulations, some countries such as Sweden, Germany, Australia, the US and Canada are acting against the use of PFAS (both the long and short chain varieties) in firefighting. Independent industrial organisations as LASTFIRE are investigating fluorine-free foam (F3) performance. AN ALTERNATIVE: FLUORINE-FREE FOAMS (F3) F3 foams offer comparable extinguishing performance and burnback resistance to aqueous film-forming foam (AFFF). F3 performances are certified under international standards (EN1568, UL, ICAO, LASTFIRE) in the same category as AFFF. F3 foams were successfully used during large petrochemical fires as Lubrizol in France. It is now possible to protect the environment and human health while also considering fire safety. Fire brigades, chemical and oil & gas

industries do not wait for the regulation to change for F3. For example, a chemical factory fire in Melbourne was successfully extinguished using only F3 foams and many major international airports have already transitioned to F3 foams including Manchester, Paris, Lyon and Lisbon airports. HOW DO FLUORINE-FREE FOAMS WORK? When applied, AFFF foams form an aqueous film, whereas F3 foams create a resistant and covering blanket above the fuel in fire. F3 foams are applied with the same application rates and the same gentle and forceful application methods as AFFF foams. Guaranteeing a long burnback resistance, the F3 drainage time is longer than fluid AFFF foams. The same storage conditions and periodical lab tests are required. TRANSITIONING TO FLUORINE-FREE FOAMS IN STORAGE TERMINALS Firstly, storage terminals must ensure that the F3 performance selected is compliant with international standards (EN, UL, GESIP, LASTFIRE). Then, they must ensure F3 performance on specific fuels (not yet tested by standards) by acceptance test with the firefighting foam manufacturer. Furthermore, the compatibility of F3 with existing foam mixing and foam discharge devices needs to be verified. To guarantee that tanks are free from all traces of fluorinated derivates, a clean-up protocol is required before refilling with F3. This being done, the transition to F3 new foam can be succefully implemented.

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TECHNICAL FEATURE FIRE PREVENTION PIONEERS IN ECO-FRIENDLY FLUORINE-FREE FOAM

Around 18 years ago, BIOex was the first to launch a 100% fluorine-free firefighting foam (F3) – ECOPOL – providing an efficient class A and B fire extinguishment while preserving the environment. A team of engineers and Ph.D doctors is in a constant process of searching for new eco-friendly components and testing new efficient formulations. BIOex uses its extensive experience and comprehensive long understanding of industrial risks, especially tank terminal fire protection, to provide eco-friendly foams for efficient fire extinguishment and burnback resistance. Recognised as a safer alternative to chemicals of high concern, not using PFAS, BIOex eco-friendly foams are Greenscreen analysed and certified. Major oil companies are currently using BIOex F3 foams across their worldwide facilities. They can rely on BIOex 24/7 emergency service with worldwide stocks and delivery in the event of an urgent need for firefighting foam. ECOPOL PREMIUM FIREFIGHTING FOAM The company’s ECOPOL firefighting foam achieves the best ranking within EN1568

standard (1A/1A on hydrocarbon and on polar solvent fires). To check the performance of BIOex alcohol resistant fluorine-free foam (ARF3), a major oil and chemical tank storage company tested both ECOPOL Premium F3 and its current AR-AFFF foam. Under a LASTFIRE large scale fire test, both in the same conditions. An independent thirdparty came to certify performance. It was found that ECOPOL Premium F3 achieves better results in extinguishment and burnback resistance than their performant current AFFF-AR foam. Thus, the tank terminal company decided to use the ECOPOL Premium F3 firefighting foam on its new installations. BIOex can support this transition to F3 by testing F3 foams on specific fuels and verifying the compatibility of the new foam with existing fire suppression systems.

BIOEX EXPANDS To meet the increasing demands for F3 foams, BIOex, established in France, has expanded and moved into new facilities. Built to the latest standards, the production (up to 80,000 litre per day) and storage capacities have been increased, means that the production process of fluorinated and fluorine-free foams is separated to guarantee full freedom of fluorine components in the concentrates.

01 PFAS in firefighting foams becoming more regulated 02 BIOex new premises in France 03 Tank storage companies switching to fluorinefree firefighting foam

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TECHNICAL FEATURE FIRE PROTECTION

EVOLVING MARITIME FIRE PROTECTION At ports around the world, fire is potentially the greatest single threat to safety, therefore choosing the right fire protection is critical. In the event of a fire at ports, effective extinguishing systems and firefighting equipment are vital. This integrated approach works to contain and protect assets stored within SEA-Tank Terminal storage tanks, ensuring that in the event of combustion, the fire is contained and the environment is controlled until the systems are sufficiently cooled and fire suppression teams are deployed. Ultimately the possibility of an explosion is reduced.

THE DEVASTATING effect of these fires in maritime environments is well documented. Fatal fires on oil rigs, such as the 2010 Deepwater Horizon disaster that killed 11 people and the 1988 Piper Alpha disaster that caused 165 deaths, highlight the importance of having systems in place that minimise the risk and the devastating effects of fire in the notoriously hazardous offshore and maritime environment.

effective suppression and extinguishing systems in place. The systems are complicated by the composition of the SEA-Tank sites, which combine a mixture of new build sites and existing storage plants with distinct fire safety requirements and challenges. The high level of fire risk also means that each tank requires its own tailored protection system, creating a challenging and everevolving response environment.

It is essential that fire safety and security solutions cover all aspects of fire detection, fire extinguishing and safety services to protect the marine and offshore segments and the people who go to work every day on crane ships, storage tanks and handling sites and rigs. The health and safety of the staff depends on the installation and maintenance of new systems, the supply of approved equipment, servicing, repair and renovation, as well as foam testing and certification. This is equally important on land, as it is at sea.

The critical need is to contain and protect assets, whilst protecting workers and the physical environment. Central to achieving this is the imperative of ensuring efficiency and immediacy of fire detection and facilitating speed in fire suppression response. As a solution, Chubb created a comprehensive package including fire detection, monitoring and suppression.

In addition to the challenge of protecting highly flammable and corrosive liquids, the complexity of the storage tank sites and wider network means it is critical for Chubb to manage all project installations and closely align with SEATank to effectively time the installation of detection equipment. The result is an integrated, tailored and responsive solution to maximise the quality of fire monitoring and detection services across all SEA-Tank terminal sites. Tragedies such as Piper Alpha and Deepwater Horizon showed the world the devastation fire can wreak on an offshore environment. These events serve as a constant reminder of the importance of having and maintaining fully functioning fire safety systems to prevent, detect and suppress fires. Maritime fire safety has improved considerably since these disasters; however, fire threats are constantly evolving, and it is crucial to stay ahead and adapt to these challenges. For more information www.chubbfiresecurity.com

SEA-Tank, for example, builds and manages tank storage and handling sites in Belgium and France. It provides storage for millions of cubic metres of liquids, such as highly flammable petrochemicals. Products stored in the tanks can easily catch fire or explode with potentially disastrous consequences. Therefore, it is vital for these sites to not only maintain an alert and effective fire monitoring and detection system, but also to have highly

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TECHNICAL FEATURE ENGINEERING

ENGINEERING FOR REAL-WORLD PROBLEMS Drawing on its years of experience in the oil & gas engineering sector, ENG. CO.CZ, headquartered in the Czech Republic, offers unique engineering solutions to the energy & bulk liquid storage sector as it moves towards a global energy transition. Owner and managing director Michele Villani talks to Tank Storage Magazine’s Jasmin McDermott about how the company has evolved and plans to expand its range of services…

JM: Can you give me an overview of EngCo Group’s history and how it serves the tank terminal sector? MV: EngCo Group’s history dates back to 2013 when a group of entrepreneurs, who already owned engineering companies, decided to use their years of real-world operational experience to provide sensible but bespoke engineering solutions and expert consultancy to the bulk liquid storage, pipeline and energy industry. As most of the EngCo Group team have previously worked for large multi-national

oil companies, we really do understand the problems that our clients face, as we have experienced most of these problems before. For one of our key customers – Shell International Petroleum – we currently work in Europe, Canada, South Africa, where we have a legal entity ENG.CO.CZ South Africa, and several countries in the Far East. JM: What services does the company offer? MV: The services that we offer to our customers are different, but all interconnected to maximise synergies and create value: Asset management This is a service of fundamental importance to guarantee the license to operate, regulatory compliance, correct maintenance of all safety/ business critical assets, efficient operation, reduced costs and audit ready documentation. The service essentially consists of asset information alignment, P&ID/asset structure/maintenance and inspection plans as well as identifying safety critical equipment.

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Design centre This provides support to project managers to facilitate the engineering design of projects. Projects are taken from an identified concept stage, are further defined before being taken to the detail design stage. The centre also provides technical support role during execution and document close out. Project development engineering Our PDE’s provide project development services, working closely with the asset stakeholders and business development stakeholders. In close co-ordination with the asset owner representative, the PDE supports the development of ideas into projects by assessments of the objective, HSSE, cost and schedule. The objective is to enable our clients to consistently rank the projects based on cost, schedule and benefit. Maintenance execution scheduling The MES team provide services globally from remote locations across Europe. They assist with the preparation of repetitive planned maintenance routines across global assets in compliance with local regulatory requirements.

TECHNICAL FEATURE ENGINEERING Document control best practice consultancy Our team can demonstrate and advise on best practises for managing documents and other information. Project Delivery and Handover Assurance (PDHA) The aim of the PDHA team is to act as a service provider to the client team for performing all the necessary actions to ensure that projects, plant changes and maintenance are kept accurate through the asset management model. This ensures compliance with computer maintenance management system CMMS and reliability inspection requirements are kept up to date. All the services provided by EngCo Group are highly appreciated by our customers but the services that are achieving the greatest success are project development engineering and project delivery and handover assurance. JM: How has the company’s expertise evolved over the past six years? MV: The founders of EngCo Group have years of experience in the oil and gas sector, particularly in oil refining and oil terminal operation. The most important thing to consider when building any team is to ensure it is built with quality. We hire people with vast experience and excellent communication skills but above all they have the desire to find the best solution to every problem. At EngCo Group we like to form a partnership with our clients. This means that we are with them on every step of the journey, and, as a result, we experience their problems first-hand and this allows

‘New opportunities have been created for consultancy firms in the oil & gas sector to strengthen their internal teams with the required engineering resources to meet these evolving challenges’ us to develop truly smart and efficient solutions. For us this is a great way to do business as it exposes our entire team to real world problems. JM: What would you say is the most important factor behind the company’s success? MV: We provide bespoke services and solutions, created according to the real needs of our customers. Our mantra in everything we do is to create value for our customers and to reduce operational and safety risks. We understand that services are a cost for our clients and therefore it is vital that they get added value in return in terms of economic savings, regulatory compliance, greater safety and greater certainty in important decisions. JM: How has serving the oil, gas and tank terminal sector changed in recent years? MV: In recent years, the oil industry has undergone quite a significant transition in order to contribute to the energy transition, as well as to meet the increasing social expectations and legislative requirements.

The asset footprint has evolved toward consolidation in the oil sector but in the gas and power sector it is growing significantly. The changing regulatory environment has required the whole sector to enhance effort in compliance, including more investment in the asset base in order to meet asset integrity and process safety objectives. All of this has created new opportunities for qualified consultancy firms in the oil and gas sector to strenthen their internal teams with qualified and trusted resources to provide operators with the required engineering services to meet these evolving challenges. JM: There are a lot of exciting developments taking place at EngCo Group, can you give an update on what these are & what they mean for the company? MV: Our vision is to continue to provide quality services that are always highly appreciated and valued by our customers. Our company is currently in a period of growth due to increasing demand for our services. In 2019, ENG.CO.CZ opened an office in Ireland, and this is the centre for our project design engineering expertise. We have recently added a specialist recruitment service to our portfolio of services. Due to our background, our extensive network, and experience in the field, we can confidently source and place the best engineering, maintenance and operations candidates for our clients. We are also offering a training and development service utilising the latest technologies, including virtual reality, to share our experience and lessons learnt from the industry. In the second quarter of 2020 we will also be launching our 3D scanning service. And our dedication and hardwork is reflected in our clients feedback. Manuel Ronda, D-Game Improvement Programme, Shell Italia Oil Products recently said to us: ‘We appreciate the quality of the EngCo Resources and their sense of commitment and accountability towards our company’s objectives.’ It is a very exciting time for the company, and I am proud at how it is evolving and reacting to the needs of the industry. For more information www.engcogroup.com

01 Owner and managing director Michele Villani 02 Some of the EngCo team

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TECHNICAL FEATURE MIXING

THE BENEFITS OF CONTINUOUS MIXING 01

FOR THE past ten years, the oil market has undergone significant changes, especially with the geographic evolution of supply and demand, increasing the volumes traded. Also, the increased geopolitical risks in the oil market are prompting closer monitoring of oil security. In this context, oil stocks continue to play an important role, particularly in overcoming potential disturbances. The storage of large volumes of crude oil before refining is more complicated than for other products. Oil, when it comes out of the ground, is loaded with coke, tar, sand and water, and sometimes seawater. Especially since the share of unconventional oils in production increases, these have lower quality with higher impurity rates than conventional oils. The settlement of these impurities, as well as the accumulation of water (commonly called BS&W: Bottom Sludge and Water), can seriously damage storage tanks and all transfer equipment such as pumps, valves, and instrumentation. Added to this is greater diversity in the quality of oils – extra light from the US, extra heavy from Canada, for example – requiring more frequent mixing of crudes upstream from refineries to maintain a proportion of petroleum products that meet the needs of the current market. Agitation of the stored oil is therefore essential to avoid these drawbacks, which can turn out to be excessively expensive, and only continuous mixing can prevent settlement and water accumulation. If the blending of different crudes is required, higher agitation is necessary. The size of the storage tanks also affects the type of equipment required. For example, tanks that are several tens of meters in diameter and do not have any

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top support, most often with a floating roof, prevent the installation of vertical agitators. Side entry agitators installed in the utility holes on the tank shell are therefore the best solution. However, the existing utility holes and the low level required for this equipment make the installation of agitators restrictive. Mixing expert Milton Roy developed the SABRE impeller, a four-blade propeller. The SABRE type propeller is designed explicitly for agitating huge tanks. It is a solution recognised by users for many years. Its small size makes it easy to install the agitator in an existing utility hole even when the mounting flange is small. With its four blades, its hydraulic qualities are also superior to those of a larger three-blade propeller. The innovative small diameter SABRE impeller allows for reduced energy consumption, improved hydraulic efficiency and easy installation. Another advantage: its tiny footprint, which optimises the useful volume of the tank. The flow generated by the propeller being particularly stable, a low liquid level can be achieved, and no doghouse is required in the floating roof. Lifecycle analysis shows that mixing crude storage with Milton Roy mixing machines is one of the most economical solutions to date. TYPICAL APPLICATIONS Crude oil storage • To avoid solids settling and allow pumping out the crude • To avoid tank corrosion due to trapped water in Crude - The combination of these two actions is called BS&W control (Bottom Sludge & Water)

Gasoline/fuel oil blending • To blend various components to uniformity in a specified time • Eliminate stratification (happening when loading components having different density in the same tank) Crude oil blending • To blend various to uniformity various qualities of crude oil in a specified time • To eliminate stratification • To blend additives in crude oil Bitumen storage • To eliminate buildup of sludge or tar at the tank bottom • To ensure uniform heat distribution to avoid asphalt from solidifying when cooling Milton Roy’s side entry mixers offer a variety of features to optimise process performance and reduce maintenance. For more information www.miltonroy.com

01 Swivel side entry mixer with SABRE four-blade propeller 02 Side entry mixer with SABRE four-blade propeller 03 Side entry mixer with SABRE four-blade propeller

VERSATILE. Always a leading innovator, ROSEN not only supplies pipeline customers with the latest diagnostic and system integrity technologies but also offers flexible solutions and all-round support for plants & terminals.

www.rosen-group.com

TECHNICAL FEATURE FIRE SAFETY

CHOOSING THE RIGHT TOOLS TO MAXIMISE FIRE SAFETY DETONATION and deflagration arresters, although similar in construction, serve two very distinct purposes. A flame arrester is a safety device that is used on the pipeline or end of the line to block potential fire or explosion passages through the line. There are predominantly two types of flame arresters: detonation and deflagration. Detonation flame arresters are designed to overcome sudden explosion impacts in the pipeline, whereas deflagration flame arresters block fire flames in a particular location to stop them from traveling in the pipeline freely. The Storagetech technical team is experienced in choosing which type of flame arrester is required for a particular application. Even though there are many factors to consider; location, products stored, and pipeline/piping design play important roles. Deflagration arresters: the facts • Stop the propagation of a flammable mixture. • Act as a fire barrier to prevent the passage of a flame and dissipate the heat of the flame below the auto-ignition temperature of the combustible vapour emitted by the flammable liquid.

• They are categorised as two different types: in-line and end of-line. • They are designed to be used as a barrier between the tank and the vent in order to safeguard the tank’s contents from ignition inside a tank. • Prevent flame flashback for 30 minutes of continuous burning. Detonation arresters: the facts • Provide a screen of protection between two areas in a pipeline. • Protect one tank or one area of a pipeline from a detonation or explosion from another tank or area of pipeline. • Quench a detonation or deflagration traveling down the pipeline. • Stop detonation from spreading to other areas attached to the same pipeline. • Designed to withstand higher pressures than the flame arrester and quench detonations. • Can be utilised in any piping configuration. • Prevent flame flashback for 120 minutes of continuous burning. CHOOSING THE RIGHT FLAME ARRESTER Deciding when to use a deflagration and when a detonation arrester can be confusing. Therefore, it is important to first answer these questions:

3. Are there any flow restrictions on the protected side of the arrester? During low and medium level deflagrations, pressure waves, travelling much faster than the flame front, travel through the arrester and are reflected by a restriction such as a partially closed valve. The reflected wave can cause significant pressurisation within the flame arrester element channels, which can enhance conditions for flame transmission. Furthermore, the following conditions must be thoroughly evaluated prior to selecting the correct deflagration or detonation arrester: Gas/vapour composition As part of the selection process, a classification must be identified for the product passing through the arrester. Maximum explosion pressure, minimum ignition temperature and the maximum experimental safe gap (MESG) are all used to formulate an EN explosion group rating.

1. Where is the ignition source? Turbulent flow enhances the mixing of the combustible gases, greatly increasing the combustion intensity. This can result in increased flame speeds, higher flame pressures and higher flame temperatures than those found in laminar flow conditions. Such piping configurations must be taken into consideration when selecting an arrester. If flashback should occur, the flame arrester could fail before the system or personnel have time to react. 2. What needs to be protected? Using the flame arrester as a means of protection with a vacuum inside the storage area might at first glance appear inapplicable for the case when a vacuum valve of the conservation vent opened. However, the usual flame exposure to a storage tank conservation vent involves an external fire. The heat transferred from such a fire would warm the gas

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space inside the tank and cause the gas to expand. Thus, at times of fire exposure to a conservation vent, the gas flow through the conservation vent would be expected to be outward to the atmosphere. Flame propagation backward through the conservation vent is thereby prevented.

Flame & detonation velocities/pressures The characteristics of a flame front as it encounters an arrester is affected by numerous factors. In addition to initial pressure, temperature and vapour composition, the pipeline plays a critical role. The distance between an ignition source and an arrester, often referred to as the ‘run up’ distance, has a dramatic effect on the flame speed and pressure seen by the arrester. Flame speed tends to increase as it travels down a confined piping run. This is a result of unburnt gas ahead of the flame front being preheated and compressed by the escaping combustion products. Turbulence provides a mechanism for acceleration of the flame front. Irregularities in the piping configuration (obstructions, bends, etc.) tend to increase the turbulence in the unburned gases, resulting in higher flame speeds.

TECHNICAL FEATURE FIRE SAFETY

and upstream in a pipeline. Since the pressure developed in the combustion can be high, the in-line arrester and pipeline must be properly designed, constructed and tested. The flame arrester element itself must be capable of withstanding substantial pressure differentials in both directions as a result of the combustion. Please note that Storagetech flame arrester production, assembly and tests are in accordance with EN ISO 16852:2016. For more information

Pressure drops The pressure drop associated with an arresting device must be known in order to ensure it is properly sized for a given application. Minimising the pressure drop across the flame arrestor is in part accomplished by increasing the overall bank diameter to provide increased free area and by increasing the length of the flame arrestor element which allows a larger hydraulic diameter of the element passageways to be used. WHAT IS AN IN-LINE FLAME ARRESTER? Sometimes it is desirable to install

flame arresters in the middle of a long pipeline. They are particularly suited for installation inside a tank house where vent pipes or lines are extended through the tank house roof or walls to the outside. Locating the unit inside eliminates difficult inspections on the storage tank roof and protects the vent from the freezing of condensate. Combustion in a pipeline can readily make the transition from deflagration to detonation; in the case of some designs a detonation can be stopped, whereas a deflagration may pass through. Therefore, an in-line flame arrester must withstand and stop both types of combustion from both downstream

This article was written by Anıl Ziya Kantarmacı, international marketing executive, Äager (Ergil - Storagetech - ÄPS). Storagetech is an Äager brand that serves the bulk liquid tank storage sector along with the oil & gas, mining, water, chemical, and petrochemical industries.

01 Flame arresters (end of line, with automatic opening hood, deflagration) 02 Flame arrester (end of line, with automatic opening hood, deflagration) 03 Flame arrester (vertical, in line, deflagration) 04 Flame arrester (in line detonation, bidirectional, with shock absorber)

10-12 March 2020 Rotterdam Ahoy Booth G38

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+33 (0)2 38 76 12 00 triax@triax-securite.com triax@triax-securite.com +33 38 (0)276 38 12 76 12 +33 (0)2 0000

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TECHNICAL FEATURE VAPOUR RECOVERY

NEW REQUIREMENTS FOR EMISSION CONTROL STRATEGIES 01

AS THE product portfolio for storage terminals changes, the requirements for vapour recovery technologies is also evolving. Tank Storage Magazine speaks to Frank Kouwenberg, sales manager EMEA at Zeeco about how the company is positioning itself for future industry needs Several fundamental changes in the operation and maintenance of storage terminals have resulted in emerging requirements for vapour recovery and emission control strategies. From stricter environmental legislation to changing energy products, the challenges facing terminals means a stronger focus on ensuring the highest degree of operational efficiency while meeting the needs of their customers. Tighter emission legislation has lowered the acceptable emission levels for VOC, specific hazardous products (such as Benzene), CO2 and NOx, meaning there are new requirements for vapour control equipment.

Products which were previously exempt from requiring vapour processing, such as diesel, fuel oil and jet fuel, will in the future require emission reduction measurements. In an interview with Tank Storage Magazine Frank Kouwenberg, sales manager EMEA at vapour recovery expert Zeeco, says that as a result of fundamental changes in the storage terminal sector, the requirements for vapour control and product recovery are becoming more challenging. ‘The product portfolio of terminals is changing, and the types of emissions produced are changing, which means that the requirements for vapour recovery technology are evolving. ‘The upcoming legislation in several countries in Western Europe requiring low volatile products to go through a vapour processing system will have a significant impact on the current installed technology at terminals as well as new technology requirements.

‘Terminals, especially those in dense areas such as Belgium, Germany and the Netherlands face low permitted maximum emission levels and strong enforcement. Their operations could be shut if they don’t comply. ‘Additionally, terminals are focusing substantially more on operational flexibility of vapour processing systems and on reducing operational costs in terms of service, maintenance and energy consumption as margins are getting tighter and competition is increasing.’ CHANGING PRODUCT SPECIFICATIONS The growing popularity of chemicals, renewables, LNG and hydrogen has resulted in the decline of more traditional oil-based products, while environmentally-driven change from diesel to gasoline, electric or hydrogen in the transport sector has impacted the sector as well.

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TECHNICAL FEATURE VAPOUR RECOVERY These changes are not only fundamentally altering the key operating principles at storage terminals, but also have consequences for new and installed emission reduction measurements and technologies. ‘These product portfolio changes have a significant impact on the operation and investment at terminals. ‘Traditional crude oil terminals are reducing in Europe and the number of refineries on the continent is not increasing; it’s decreasing. Crude oil storage at Europe’s receiving terminals is decreasing and what is growing is the demand for storage of refined products, chemicals and LNG. ‘The storage and handling of these products results in different requirements for the applied vapour emission control solutions. ‘As a result, many terminals are looking for the highest flexibility regarding the type of vapours that can be processed both now and in the future and are examining their emission control strategies. ‘This drives Zeeco to constantly develop and improve its range of products and services focused on vapour and gas emission control technologies and solutions.’

Zeeco’s Vapour Control Products division is dedicated to supporting the liquid and gas storage and handling industry with a range of solutions to achieve safe and sustainable operations.

Its emission control solutions for the terminal market range from VRU systems for VOC emission reduction and product recovery to effective vapour and gas destruction using a vapour combustion unit (VCU) or thermal oxidiser (TO). The company also offers a dedicated 24/7 service for maintenance, breakdowns, revamps and retrofits as well as a VCU/TO/flare rental division. ‘Companies like Zeeco can come in and assess the current situation for terminals but also understand what the challenges are in the future. It is important to ensure that solutions chosen today will remain relevant in the future.’ For more information www.zeeco.com

01 Vapour recovery system at a truck loading terminal 02 Vapour Combustion Unit (VCU) at a marine terminal

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TECHNICAL FEATURE DIGITALISATION

REAPING THE BENEFITS OF EDGE INTELLIGENCE

WITHIN the oil and gas sector time is money and that is why it is crucial that high value assets are always operating efficiently. Unfortunately, at present that is not the case, and the costs associated with this unreliability are astounding. According to the US Department of Energy, there were on average 1.2 shutdowns to refineries every day. That equates to a cost of $2 million every day, with almost half of these stoppages caused by equipment failure. And that is just a top line figure. When you drill down the other costs that operators incur, they are equally as staggering. There are 43 hours of high-cost labour spent on inspection and monitoring for every $1,000 worth of equipment. When it comes to offshore exploration and production, a one-day delay because of equipment issues will add $500,000 on top of the project cost. Given this high price of failure, it would be fair to assume that decisions around maintenance are based on sophisticated and real-time information. Unfortunately, this is seldom the case. Industrial operators tend to make decisions based on experience and intuition, with more than 90% of decisions made on information from spreadsheets or memory. DELIVERING BENEFITS ALONG THE VALUE CHAIN The benefits of intelligent edge are fourfold. Firstly, it can improve operational efficiency through real-time intelligence and visualisation capabilities of the production process that reduces equipment downtime, increases productivity and lowers energy costs.

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In such an energy intensive industry the latter is a crucial concern. Equipment performance and its life can be enhanced by moving the maintenance strategy away from reactive into the predictive and proactive maintenance domains. When it comes to projects, it can both minimise project delays and process interruptions as well as enhance reliability and reduce equipment costs. Edge solutions are crucial when it comes to remote or difficult to access equipment that are challenging to both monitor and manage. Without access to real-time information from the assets themselves, operators are forced to rely on manual visits that are inefficient and infrequent, leaving a data void between them. This means that often the equipment performance and functionality is unknown until it fails, which can lead to an interruption in the project or process and result in costly downtime issues. FOUR STEPS TO AN INTELLIGENT ASSET One solution that is being touted as an answer to this dilemma is the intelligent asset. But what exactly is this? To fully understand it is helpful to follow the technology roadmap of an industrial asset on the route to intelligence. It starts with self-diagnostics, where an asset can monitor and report on its own health. Then you need to add context awareness so that an asset is aware of its location, the operating environment and is conversant with any potential threats to its operational efficiency. The third step is process competency, where the asset can activate and orchestrate a process in context of requisite operations. Finally, it

must be future wise and be able to make decisions with predictive insight. ADDING INTELLIGENCE TO ASSETS The assets themselves will not become intelligent on their own. For that they will rely on software, connectivity and edge computing. One good example is a steam generator. With high energy costs, steam is expensive to produce and difficult to store so its production needs to be carefully controlled. Armed with an edge computing device with analytic software, a steam generator can be transformed into an intelligent asset. Through the software, it is aware of its own health and can predict impending reliability issues that would impact its operation. It is aware of the ambient conditions, such as humidity or rain, and how they will affect the process. It is also conversant with the process and aware of the heating demands for each product profile so can adapt its output to optimise productivity and manage its energy use economically, thus minimizing carbon impact. But it must be remembered that the assets, like steam boilers, are not made with intelligence built in; that intelligence is added by edge sensors and innovative AI software that delivers the contextual awareness and predicts operational functionality or potential issues. TYPICAL SOLUTION ARCHITECTURE The solution architecture is flexible and can be based on local implementation in the field, at a site, at the enterprise level centrally or in the cloud. Raw data is pulled directly from the asset, with

TECHNICAL FEATURE DIGITALISATION additional sensors if necessary, which feed data specific to the equipmentâ&#x20AC;&#x2122;s profile to Atomitonâ&#x20AC;&#x2122;s Neuron edge computing device. The Atomiton A-Stack software on the Neuron ingests and analyses this data in context and applies AI-based algorithms to profile and optimise equipment health and functionality, as well as predict proactive maintenance required. From the Neuron edge computing devices this information is transmitted, usually via a local area network, to a central field or site location whether it be an oilfield, pipeline or refinery. Connectivity in the field is often wireless, given the difficulties of deploying standard enterprise IT infrastructure. Here the operational data is displayed on a single pane of glass dashboard that gathers all the intelligence from the various edge devices and provides details on all the critical assets. This operations dashboard provides the visibility required for scheduling and process tracking and other operational decisions, in real-time. Further upline, at the enterprise level, the intelligence from multiple sites is integrated either in the cloud or at a data centre, merging it with other information from ERP systems and other enterprise applications, to obtain a holistic enterprise view. SUPPORTING OPERATIONAL EFFICIENCY IN UPSTREAM OPERATIONS In the current era where lower oil prices have become the norm, operational efficiency is particularly key for the upstream sector. If it cannot be produced economically oil is being left in the ground. When project viability is judged for budget allocations each segment of the exploration and production value chain from deepwater to unconventionals

must justify its budget. To meet these ever more stringent financial demands, projects need to improve their recovery ratios and speed as well as maximising the use of assets by reducing downtown. By gaining valuable insight from edge intelligence, operators can meet these challenges. For unconventional wells having real-time or near real-time data means it is possible to reduce costly daily site visits as well and reduce unscheduled shutdowns. ENSURING HEALTH IN DOWNSTREAM OPERATIONS Downstream the challenges are more focused on running the processes in plants and refineries. The ability to have a single pane of glass dashboard at the site that gathers intelligence from the equipment such as generators, heat exchangers, boilers, pumps, motors and compressors creates greater operational visibility. Here analytical and comparative insights can be used to track equipment performance and energy parameters to make informed replacement or maintenance decisions. This is done by leveraging sensors and software to monitor, trend, and analyse equipment performance, load and energy. This intelligence gained is used to proactively alert the operators of degradation or maintenance needs. In terminal operations, the functionality and health of pumps and mixers is a critical part of daily operations to ensure the quality of product and smooth product flow. These critical assets have typically been diagnosed retroactively for health issues after a mishap has occurred, or placed on a scheduled maintenance routine, without consideration for causal risk factors that may lead to incidents like a pump failure that shuts down a loading operation.

Through implementation of an asset intelligence solution, these critical assets are now managed proactively, to ensure functionality and to predict required maintenance, in advance of failure. This saves the facility hours of downtime and lost productivity, as well as ensuring the value of critical assets are maintained through the appropriate lifecycle. ADDING INTELLIGENCE THROUGH DIGITISATION Across the entire value chain of the energy industry, properly functioning equipment is a key part of daily operations. By digitalising these assets to make them intelligent, through edge computing and AI-based software, existing equipment now becomes a part of proactive rather than reactive operations, reducing costs associated with non-productive time, equipment failure, and safety issues due to malfunctions. Furthermore, by profiling and predicting potential risks such as asset failure that may cause environmental impact, it is possible to proactively manage the carbon footprint of operations. For more information www.atomiton.com

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SHOW PREVIEW STOCEXPO 2020

STOCEXPO 2020: FUTURE. DELIVERED. StocExpo returns to the Ahoy Rotterdam promising to deliver the future of bulk liquid storage. Across its bustling show floor and comprehensive conference programme, the three-day event is packed with unique industry content and the latest innovations to inspire, connect and share knowledge within the tank storage community. Featuring the latest technological solutions and innovations, live product demonstrations, exclusive training and an innovation zone hosted by iTanks. Tank Storage Magazine, hosts of the exclusive Terminal Operators Lounge at the show, previews some of the innovations on show from March 10 to 12â&#x20AC;Ś

Agidens Arma Tankbouw

Lemis Process

C Carbis Loadtec Group CEA Systems Circor

M M+F Technologies MHT Technology N NDT Global Services Newson Gale

D DERC Salotech E

P Polix

Eddyfi Technologies Elsont Endress + Hauser Engineering Software Steyr (ESS) H Honeywell I Implico & Brainum Innova Isoil Impianti

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S Saval Dr.Sthamer-Hamburg Storagetech Ergil T TA Roloff Tecam Toptech Systems Triax Trisoplast TWTG

SHOW PREVIEW STOCEXPO 2020

Agidens

AGIDENS Stand E15 For more than 50 years, Agidens has been working together with its customers and partners on solutions that make terminals safer, more flexible and more reliable. Agidens offers solutions in real-time scheduling, terminal management software, automated safety, process control, tank gauging, loading systems, consultancy and engineering services and energy management. In this way, the company contributes to more efficient and manageable business processes for its tank terminal customers. AXCEL is a sophisticated and dynamic terminal management software system to achieve the best possible planning and scheduling for road, water, rail, pipeline and tank movements. With AXCEL, a terminal model is set-up that maps all resources and assets. Four modular modules are available; the truck slot booker, the truck dispatcher, the water planning support and the operator guide. AXCEL relies on sophisticated algorithms, detailed historical performance data, terminal assets, workforce availability and real-time data

about ongoing operations to optimise the use of the terminal assets and resources. It doesn’t only improve the efficiency and ROI of a terminal’s operations, but it will help the different operators on the terminal to work closer together in a better-informed way.

including tank foundations, tank pits and tank jacking, Arma Tankbouw serves the market with a total package of both mechanical and civil works. A flexible organisation with well-trained and certified employees and modern production facilities enables Arma Tankbouw to deliver high quality works and services. Running projects without safety incidents is top priority. Arma Tankbouw’s repair and modification experience ranges from renewal of bottoms, shells and roofs to increasing or reducing the capacity of a storage tank, both in carbon and stainless steel. Orders are received from many wellestablished companies across many industrial sectors, including (petro) chemical, oil, energy, tank storage, foodstuffs and animal food.

Arma Tankbouw

ARMA TANKBOUW Stand I19 Arma Tankbouw specialises in designing, building and maintaining vertical carbon steel storage tanks and tank foundations. Arma Tankbouw can build storage tanks on-site or deliver them readyconstructed. With service expertise

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SHOW PREVIEW STOCEXPO 2020

Carbis Loadtec Group

CARBIS LOADTEC GROUP Stand L15 Carbis Loadtec Group is the go-to technical supplier for tanker top safety systems and high-quality road and rail loading arms. It also specialises in operator safety during in-plant, road, rail and IBC filling operations. At this year’s show the company will be displaying the latest version of Autoload, a completely robotic loading

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arm that can detect an open manhole and move to it, load and then park, without human intervention. The theme for this year is The Future – Now. ‘We will be talking to visitors about how they imagine the future of tanker loading will be in 2030 and offering our views and scenarios, it should make for some interesting feedback,’ says Alec Keeler, managing director of Carbis Loadtec Group. ‘Of course, we will also be discussing our extensive range of tanker top safety solutions to compliment the loading arms. This is in-line with on-going discussions with a number of global clients who have already adopted Autoload into their plans.’

CEA Systems

CEA SYSTEMS Stand E14 The tank storage industry is growing and will continue to do so. This means more need for innovations, regulations and a lot more data generated, which makes it difficult for companies to keep up. With over 40 years of experience in the tank storage industry, CEA Systems understands the importance of keeping up with an increasingly dynamic market, a market driven by data. CEA offers a software solution to manage this growth of data called Plant4D. Plant4D aligns all data sources to form the most accurate and up to date as-built asset information. This single source of truth virtualises all asset information in one database to make more well-informed decisions. This software solution will not only link different data sources together, but it will also reconnect all asset information. Our Plant4D environment makes it easy to create all as-built asset models in real time with up-to-date and validated asset data. A live demo of Plant4D will be available at StocExpo.

SHOW PREVIEW STOCEXPO 2020

Circor

ENGINEERED EXCELLENCE

CIRCOR Stand E6

Select Control Valves, Regulators, & Storage Tank Products We are a leading manufacturer and worldwide marketer of control valves, regulators, controllers, pressure/vacuum relief vents, and flame and detonation arrestors.

Fluid handling leader Circor combines smart control and the latest in positive displacement pump expertise in its StocExpo offering, the Houttuin TT + Twin Screw SMART Technology package. With so many external factors governing the storage of raw and refined products today – expanding market geographies, compliance with IMO 2020, new terminal locations, ever-changing fuel mixes, the need to lower CO2 and other emissions, to name a few – operators face competitive challenges like never before. No terminal can afford to have underperforming transfer and unloading pumps. The Twin Screw Smart package automatically adjusts flow to operating conditions while the Houttuin TT twin screw pump unloads virtually every drop of fluid with minimal or no operator intervention. The days of relying on a human operator to slow a pump down or shut a valve manually are quickly disappearing. The connected control of SMART Technology supplies the data needed to preserve NPSHr and eliminate worries about cavitation. The result is delivery of consistent performance across changing fuel mixes, fluid levels and inlet pressures from a pump that engineered for the speed and flexibility demanded by current market dynamics.

MODEL 3100 PRESSURE VACUUM VENT MODEL 8900 TANK EMERGENCY VENT MODEL 6A00 FLAME ARRESTOR MODEL 1078 VACU-GARD

Derc Salotech

DERC SALOTECH Stand E2 Derc Salotech is an original equipment manufacturer and supplier of innovative high-pressure water jetting solutions, automated equipment and accessories. At StocExpo, Derc Salotech will be joined by Gerotto from Italy. Gerotto is the manufacturer of hydraulic and air driven robots that can replace humans in dangerous cleaning works. The innovative revolution for safe

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

CAS-264.indd 1

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3:51 PM

INDIAN BULK

LIQUID STORAGE

SUMMIT

Successful Editions

60+

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300+

Delegates

6th

Edition

SHOW PREVIEW STOCEXPO 2020

Elsont

ELSONT Stand C22

Credit: Derc Salotech

cleaning of tank storages at refineries or any other industries. All robots can be controlled through a hydraulic distributor or remoted controlled. The operator can control the robot from a safe distance. Gerotto even has a robot for cleaning storage tanks in ATEX zone 0 environment. Thanks to the camera system, the operator can control the robot from a safe and conditioned area. Both companies are focused on continuous innovation and they will be introducing two new robots at the show. Gerotto will showcase its new submarine cleaning robot, the Bull. DERC Salotech has a scoop in the field of (semi) automatic surface cleaning.

from two brands, providing inspection companies and asset owners with a reliable, tried-and-tested system that delivers optimal corrosion data. In this new configuration, it combines RMS with the cutting-edge M2M systems – Mantis or Gekko – which are undisputedly the most innovative phased-array instruments on the market.

• Geodesic dome roofs • Full contact aluminium or GRP made internal floating roofs • Pontoon type aluminium internal floating roofs • Stainless steel internal floating roofs • Floating roof seal systems • Floating suction lines • Floating roof rainwater drainage systems • Gauge pole covers, leg seals, special seal solutions, a.s.o.

Eddyfi Technologies

EDDYFI TECHNOLOGIES

Together with its customers, Elsont carries out all regulatory requirements and gears any tank up for the demands of the future.

Stand G10 Eddyfi Technologies provides the most advanced NDT technologies in the world, helping OEMs, asset owners, and service companies enhance productivity, save lives, and protect the environment. Its mission is to push the limits of advanced NDT to new heights by featuring various NDT modalities and investing massively in product advancement. The recently launched Silverwing RMS PA is a complete NDT inspection solution aimed at significantly improving data quality while reducing inspection times for Non-Intrusive Inspections (NII) of critical assets such as storage tanks, pipelines, and vessels. It is a remote access phasedarray corrosion mapping solution that delivers high-resolution imaging without speed compromise. RMS PA is up to 10 times faster compared to conventional corrosion mapping systems. The system can be controlled remotely and driven up a tank shell up to 30 meters, eliminating the requirement for scaffolding, rope access, or other working-at-height methods. This inspection solution is the result of the ingenious integration of flagship products

Elsont’s core values – safety, integrity, positive relationship, stewardship, community involvement and delivering the best – have forged its reputation for excellence. For more than 30 years, Elsont has been supplying the oil industry. Decades of expert knowledge and continued contact to operators of tank farms and refineries gives Elsont the edge and helps it gain new clients. Based on over 20 years of installation and maintenance experience, Elsont’s specialised range of equipment is being installed in refineries all over the world. Elsont is ISO 9001:2000 and SCC** certified, and all products are manufactured to strict quality standards. Manufacturing of its products is based in modern facilities in Seoul, Korea and Europe. It strives to reduce product losses through evaporation and maintain product quality with:

Credit: Elsont

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CANADA GAS & LNG EXHIBITION & CONFERENCE

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Vancouver Convention Centre Vancouver, Canada

FIRST LOOK CONFERENCE PROGRAM NOW AVAILABLE!

Showcasing the future role of the Canadian Gas & LNG market in the global gas industry Get in touch to book your delegate place

SESSIONS INCLUDE: The Global Energy Scenario and Canada’s place within it Marrying Canada’s LNG industry with its commitment to the Paris Agreement Identifying the role of Canadian LNG in the context of a transitioning global marine ﬂeet

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SHOW PREVIEW STOCEXPO 2020

Endress + Hauser

ENDRESS + HAUSER Stand G5 Plastic tanks are often located in remote locations. This causes numerous challenges for level measurement, especially when there is not just one tank, but several tanks that are widely scattered. Ideally, remote access to the tanks and the setting of specific limits are possible, which then trigger a notification. In 85% of all production plants, however, level measurement is highly complex or very time- and cost-intensive. For this reason, missing stocks are often only registered when the tank has already run empty and the production process has come to a stagnation. Endress’ Micropilot FWR30 combined with digital services is the world’s first wireless 80GHz IIoT radar sensor. It is developed to provide all information to manage inventory in remote and mobile applications and has been designed to provide continuous simplicity – in purchase, installation and usage. The smart level transmitter unifies high-end technology in a cost-effective sensor. Its simplicity and the essential features save time, ensure continuity and optimize logistic and storage processes. Benefits at a glance: • Effortless transparency in storage and transportation of liquids • Simplified solution from procurement to operation • Secure data transmission and flexible integration maintenance • Information access from everywhere at any time

Credit: ESS

Credit: Honeywell

Engineering Software Steyr (ESS)

ENGINEERING SOFTWARE STEYR (ESS) Stand I14 Engineering Software Steyr (ESS) provides innovative simulations that mitigate risk by creating scenarios and illustrating solutions that make tank storage facilities safer. Founded in 2015, ESS has forged a reputation built on precision. ESS’ simulation software complements its belief that it is possible to protect our planet with predictive precision. Facilities are often greatly affected by environmental disasters. Even the smallest leak or rupture can lead to not only property loss and production interruption but can also provoke incidents that can spin out of control and lead to catastrophes. SENSE software contains a toolbox of applications that play a key role in meeting not only increased policy regulation but also consumer expectations. The SENSE toolbox uses fluid dynamics and numerical physics instead of statistical methods

to create simulations of scenarios to find optimised and stable designs and proposals for different risk scenarios. This risk assessment application provides fast and accurate analysis under multiple conditions to define improvement suggestions in tank facility design. ESS believes risk is manageable. SENSE technology empowers clients to own their risk because our applications predict with precision and enhance and secure the future.

Honeywell

HONEYWELL Stand D6 A leader in digitisation, Honeywell delivers software and services that help customers overcome competitive pressures and uncertain market conditions to achieve game-changing business outcomes. Honeywell’s comprehensive portfolio in process control, monitoring, and safety systems and instrumentation provides optimised operations and maintenance efficiencies to meet diverse automation needs. For over 60 years, Honeywell has been a leading provider of integrated terminal solutions such as terminal automation and inventory management software, loading computers, tank gauges, and additive, blending and proving equipment. Honeywell continues to provide its terminal customers with innovative solutions that deliver secure, integrated intelligence: Integrated terminal operations to integrate-connect-perform from PAGE 121

SHOW PREVIEW STOCEXPO 2020 the field, to the control room, to the business level. Inventory management & custody transfer, safe and accurate product receipt, storage, movement and custody transfer solutions that turn data into actionable insight. Safety & security to protect personnel, operations and facilities. Engineering, training and services to reduce unplanned downtime, improve asset performance and empower staff to improve terminal performance. At StocExpo the company will be showcasing its Terminal Manager software and recently released products ENTIS Inventory System, Honeywell Enraf Smart Servo 954, CIU888.

Implico & Brainum

IMPLICO & BRAINUM Stand J8 Leading downstream IT companies Implico and Brainum joined forces in November 2019, bringing together their innovation programmes and development efforts. Their aim: driving digitalisation in the downstream sector and redefining the way downstream

companies collaborate with each other. At this year’s StocExpo, the companies will present ground-breaking innovations in this field with QINO vNext and Supply Chain United. A cross-company architecture of interconnected micro services based on cloud technology, Supply Chain United orchestrates and streamlines all downstream supply chain processes with multiple participants. It offers new means of collaboration, transparency, security and convenience across all areas of business. In this

www

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www

context, Implico and Brainum will premiere the first Supply Chain United solution: The new application ‘online check-in’ facilitates quicker, safer and more efficient truck handling at terminals. Visitors will get an exclusive look at QINO vNext – the first fully cloudbased terminal management system, which is almost ready to launch. As part of the conference programme, Implico and Brainum will also share the stage, showcasing QINO vNext and Supply Chain United.

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M+F Technologies

M+F TECHNOLOGIES Stand J19 As a solution provider and manufacture of state of the art Flowcomputer Systems (MFX_4) and Terminal Automation System (COTAS), M+F Technologies offers outstanding expertise in the handling of oil products. Its market position is underpinned by its long-standing know-how in loading processes in the oil industry and its continuous development work that benefits customers around the world.

Innova

INNOVA Stand E13 Innova is the new company identity of the former FNC Tank Protection Division. In order to further grow its business, market and product development with dedicated focus on its core businesses such as tank storage, the company has created its tank protection division as a fully independent company. Moving ahead, the company looks forward to serving its clients even better in the future. New product developments together with a leaner and more flexible production capacity in a new location in the North of Italy will help grow the business and bring substantial benefits for its clients. The company will be presenting the Modular Style Breather valves 2.0, the new in-line Tornado designed flame- and detonation arresters and some smart production updates at the show.

and projects itself into a future of new applications under new concepts of terminal management. VEGA 3 relies on new coding technics and enhanced safety criteria while keeping an eye on Italian design. After MT20 and MT30, the grounding system is now in its third generation, too. The MT40 is ready to face new challenges not only in fixed installations but also on board of tankers.

The company offers complete system solutions based on its own technologies and state-of-the-art products, covering all needs, from consulting and engineering to implementation and even including regular servicing. Being a member of the J.H.K.Group, the company also specializes in all tasks linked to the automation, digitalisation, and management of tank farms, tank terminals and fuel supply systems. Its focus is on loading systems for tank trucks, rail cars and ships, as well as on blending systems and fuel supply systems at airports. The company will be showcasing its latest product innovation in the MFX_4 family – Compact Pro TT and Compact Pro Ex, which are the new one box solutions for loading processes and the fantastic Heavy-Duty Keyboard.

Lemis Process Isoil Impianti

ISOIL IMPIANTI Stand G23 Italian metering company Isoil Impianti is bringing its knowledge on fuel handling once more to the vibrant city of Rotterdam. Since 1958, Isoil has been in the frontline of the oil and gas industry, offering solutions whenever it is necessary to know how much fuel is moving. Its PD meter has not changed yet it remains the most accurate mean of measuring the flow of petroleum products. On the other hand, electronic Machine Man Interfaces have dramatically evolved quickly. The third generation of VEGA electronic flow computers – VEGA 3 – concentrates 30 years of experience in tank loading

LEMIS PROCESS Stand I1 Lemis Process will be showcasing its new full tank inventory product – DUTI-454. DUTI-454 is a one of a kind probe that can measure up to seven parameters in a tank: 1. Density profile for petroleum 2. Water level 3. Ullage 4. Temperature profile 5. Emulsion profile 6. Bottom sensor 7. Viscosity profile DUTI-454 can also calculate the volume and mass of petroleum products, as well as in LPG % of propane and butane. Inventory control with DUTI-454 is simple, fast and reliable.

MHT Technology

MHT TECHNOLOGY Stand G5 MHT Technology, part of the Endress and Hauser group, is a leading global supplier of tank gauging, terminal automation and stock management solutions for bulk liquid storage and handling. MHT started in 1994, providing services to oil storage sites in UK and Ireland using Whessoe gauges. It PAGE 125

SHOW PREVIEW STOCEXPO 2020 developed the world’s first graphical tank gauging system on Windows called Visual Tank for Windows, or VTW. The company has come a long way since then and has supplied systems in use on over 1,500 sites across the world. MHT’s product range has extended to include terminal automation systems, hardware devices to allow different manufacturer’s gauges to coexist, and electronic process management. Minimising client’s upgrade costs while in turn revolutionising their procedures and improving safety. Digital transformation and constant innovation are what they do, but with the human element at the core of the design. In 2019, MHT launched Safe Ops to eliminate vulnerable paper- based checklists and help businesses with digitalisation. The company will be running demonstrations of Safe Ops during StocExpo.

Credit: Newson Gale

Stand SP2

of static charge is equivalent to a hidden source of ignition and if discharged as a static spark can lead to the ignition of the product or the atmosphere in which the material handling team is operating. Newson Gale’s range of certified Earth-Rite, Bond-Rite and CenStat static grounding systems offer the appropriate level of protection required to eliminate the accumulation of static electricity. Ensure the safety of people, plant and processes during the following hazardous area operations:

NDT Global Services is a specialist non-destructive testing and inspection company operating na-tionally and globally, providing innovative engineering and inspection and installation services for a multitude of industries including oil, gas, chemical and offshore. Its services include: the inspection of pipelines, storage tanks, offshore and marine environments, boilers/heat exchangers; the de-commissioning, rehabilitation, installation and modification of pipelines.

• Road tanker flammable product transfer • Filling, mixing, blending of flammable/ combustible materials in drums, IBCs, totes and portable containers • Multiple earthing of isolated conductive components during the processing operation • Filling or discharging of type C FIBCs and static dissipative plastic drums • Monitoring fixed tanks and vessel in storage and distribution facilities.

NDT Global Services

NDT GLOBAL SERVICES

It utilises techniques and methods such as Guided Wave Testing (GWT), Ground Penetrating Radar (GRP), pigging, IRIS inspection and Remote Visual Inspection (RVI) and API 570 Inspection. The company has built a reputation for innovation and solution based logistical thinking, inspection and en-gineering excellence, and the provision of its own experience and trusted inspection engineers for high quality and precision projects.

Newson Gale

NEWSON GALE Stand C30 The danger of static electricity in hazardous atmospheres is always present. Industries such as pharmaceuticals, food & beverage, chemicals and paints & coatings, where powders and solvents are used in key processes, are at risk due to the hazardous nature of the materials and the generation of static throughout the processing operation. This accumulation PAGE 126

Polix

POLIX Stand B2 Slovenia-based Polix has been manufacturing branded valves utilising the latest innovative approaches since 1965. Growing from a small manufacturing company to an internationally renowned valve manufacturer, the company, based in Žiri sells to more than 40 countries world-wide and is ranked amongst one of the most important industrial valve companies operating on the DIN markets worldwide. Polix has DVGW certificates with which guarantees high quality installation in water and gas mains. It is also ISO 9001:2015 certified and has a Conformity assessment with the Pressure Equipment Directive 2014/68/ EU by Module H. Its product range includes: DN 15 – DN300, PN 6, 16, 25, 40, ANSI 150, 300, flanged, welded, threaded, transitional piece PE

Saval

SAVAL Stand C4 Saval offers fire protection and firefighting products and systems. At this year’s StocExpo, the com-pany will be introducing ClearView to the market. It is standard practice to install fire detection systems on internal floater storage tanks. However, the movement of the internal floater some-times causes problems with the internal wiring which is difficult to reach leaving the fire detection system unavailable for long periods. ClearView is for fixed roof storage tanks with an internal floater roof. With this solution, all equipment and cabling is installed outside the storage tank. During maintenance or repair work, the tank can remain in service even when the detector is dismantled because the ClearView glass ensures a constant seal preventing the release of hazardous vapours. The see-through glass ensures the separation between the ATEX zone 0 in the tank and the outside air, so that the tank remains closed at all times.

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@UKIFDAEXPO

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UKIFDA

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SHOW PREVIEW STOCEXPO 2020

Credit: Dr. Sthamer-Hamburg

TA Roloff

TA ROLOFF Stand H12 TA Roloff is a well-established maker of renowned electric actuators for industrial valves. With a history of more than 50 years, TA Roloff is internationally known for robust, reliable, long-life, small overall size quarter-turn actuators. HazLoc: Its portfolio features explosion proof actuators classes ATEX and IECEx.

Dr.Sthamer-Hamburg

DR.STHAMER-HAMBURG Stand B6 Dr.Sthamer-Hamburg is a family-owned business for more than 134 years, now in its fifth generation. For nearly a century, the company has been the manufacturer of some of the best firefighting foams available in the world. Foams types it manufactures are AFFF, AR-AFFF, FP, FFFP and AR-FFFP, utilising the latest generation high purity C6 carbon chain fluorosurfactants, ensuring the lowest possible environmental impact. It also has a range of F3 fluorine free foams both low viscosity and alcohol resistant variations and high expansion foams, which will meet exacting environmental needs as well as offering excellent firefighting performance and vapour suppression. These will be presented under its new brand vaPURex. Its team of more than 50 staff are capable of developing products to suit your specific risks and also provide technical support pre and post order to make the correct informed choice for any risk profile. The company also carries out annual foam testing at its laboratory in Hamburg to ensure that the foam remains in perfect condition as long as it has been stored to our instructions.

Production takes place in a one of a kind 35,000 sq/m manufacturing facility in Turkey, which has extensive machining capability, with a wide variety of CNC mills, lathes, cutting, bending, rolling and welding machines. The company continuously enhances its advanced capabilities and services and provides high quality & affordable industrial products, with fast & efficient service. Storagetech, an expert in tank equipment, recently completed its R&D activities in air & gas absorbers and is now introducing its low-pressuredrop air- and gas absorbers, which remove existing gases as well as gases from the airflow during emptying and filling of storage tanks. The aim is to achieve full removal of gases, especially airborne CO2. Through increased surface area, 99% of the unwanted gases are absorbed to ensure the highest quality system operation. For industries operating in strict legal requirements, these gas absorbers allow the maintenance of the right pH level and low conductivity of demineralised water. Air and gas filtration effectiveness up to 100% empowers a high caliber of demineralised water.

ESD: Picture a disaster scene asking for instant response in order to protect human life or the environment. With a failsafe spring-return FM-System a valve becomes an effective means of damage prevention. Risk reduction: TA failsafe actuators perform acc. to SIL Levels 1-3. Submersible: The company’s Oceangear range meets requests for unlimited submersion in water depth up to 100 metres. Easy access control: Service and maintenance is a high priority, but it is no problem if motorvalve is installed in a confined space, difficult or unpleasant to access. Take the TA local control connected via Bluetooth. A heavy duty IP67 handheld allows a remote operation in sight.

Storagtech Ergil

STORAGETECH ERGIL Stand I7 Storagetech – along with Ergil – is an Äager brand, holds more than 35 years of experience in manufacturing equipment and accessories of storage tank terminals, refineries, pipelines, process and industrial plants.

Credit: Storagetech Ergil

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SHOW PREVIEW STOCEXPO 2020

Toptech Systems

TOPTECH SYSTEMS Stand G15

Tecam

TECAM Stand J6 Tecam is a key technology partner for the elimination of VOC (Volatile Organic Compounds) emissions, NOx, SOx, H2S, HCL and other polluting gases generated during loading and unloading of hydrocarbons at tank farms. Tecam offers turn-key technology solutions, managing the whole project from the phases of design, assembly, installation, commissioning and maintenance service of the equipment, which is designed custom-made to meet customers’ specific requirements. Tecam has vast and proven experience in the chemical and petrochemical sector and is helping the tank storage industry with emissions elimination. Each industry has its own specific technical requirements, and Tecam has the experience and the knowhow to offer the most suitable solution to each case. As an expert partner of emissions elimination technology, Tecam will present its expertise at StocExpo 2020 to help the tank storage industry solve its emissions needs, thus helping to protecting people and the environment.

Toptech Systems, global market leader in terminal automation systems, recently announced the launch of TMS7, which is the culmination of over 30 years of experience in the oil terminal industry. TMS7, Toptech’s newest flagship terminal management system, features several major improvements over traditional terminal automation systems. Toptech focused on increasing the productivity of their customers through a faster, more intuitive userinterface. From search capabilities, which provide instant results, to the ability to edit master file data (MFD) from a single multifunctional page (60% faster than in traditional TAS systems). TMS7 features the ability to make bulk changes, a drastically improved end of day process, and easy troubleshooting for load denials. Plus, users can enjoy improved upgrade times (less than three minutes) and secure mobile access from all major web browsers and devices. Additionally, Toptech incorporated superior security with faster security patch deployments and improved tools for system administration and troubleshooting. TMS7 opens the door for new disaster recovery options. Toptech Systems will be showcasing its TMS7 terminal management system at StocExpo. Triax

TRIAX Stand G28

Credit: Toptech Systems

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TRIAX produces safety systems for height protection, including safety gates, flap doors for shafts, folding stairways, mobile safety ladder, MAGAPAL: the autonomous pallet stacker, MOBIPAL: the mobile pallet stacker, pallet sorter. The company will be showcasing the Triax safety mobile ladder at this year’s show. It protects the operator during his accession and his evolution on the dome thanks to its corbelling. Depending on the situation and available space, frontal access to the vehicle is not always possible, which is why Triax has developed its new safety mobile ladder with lateral access. Thanks to an ingenious winch system, the ladder can tilt back to back off from the tank without the operator having to move it. In this way, the operator can move the ladder parallel to the vehicle in a restricted area. This new safety mobile ladder with lateral access combines an easy access even in difficult environments, and total security of the operator during his interventions.

SHOW PREVIEW STOCEXPO 2020

Trisoplast

TRISOPLAST Stand E26 The oil and gas industry often handles hazardous or polluting substances and companies need to be very careful when selecting a liner solution to isolate substances like that. The complex composition of substances used in the industrial sector requires a liner that is easy to apply in relatively inaccessible locations but which, at the same time, has highly effective isolation properties. It is this combination of properties that makes Trisoplast the first choice for industry. Trisoplast is a patented robust, waterproof, flexible and durable mineral barrier, consisting of a mix of sand, bentonite and polymer. This mixture has significantly better sealing properties than traditional mineral sealing materials and is easy to apply in hard-to-reach areas. Perfect for environmental protection and waterproofing in tank storage depots and industrial sites.

TWTG’s NEON Valve Sensors determine the state of manually operated valves of nearly every kind, regardless whether they are quarter- or multi-turn. Within the same product range, the TWTG NEON Temperature Sensor can be installed within seconds on different surfaces to measure and notify when temperature state-changes occur. It is this interoperability, based either on TWTG’s SolidRed Suite or any other IoT platform, which allows easy connection

for information and data to be processed anywhere or within a DCS of choice. In a drive for increased information and knowledge as the basis for better decision-making, several customers from the oil and gas, as well as from the chemical industry are now commencing with the deployment of TWTG’s NEON sensors. International certifications for intrinsic safety have now been granted and new NEON products will be launched in the coming months.

MARINE AUDIT SERVICES

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We can provide compliance consulting of your MTMSA submission, verify your marine terminal management’s compliance to the MTMSA standards. Ensure your staff meet the competency standards in line with industry guidance. Contact us at admin@marineaudit.co.uk See us at www.marineaudit.co.uk

Stand D12A TWTG is looking to change the way that IoT is perceived and implemented. The Industrial Internet of Things is much more than just technology; it is about the ability to create efficiencies and safety and about achieving this with ease.

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Held In

EVENTS PLATTS EUROPEAN OIL STORAGE CONFERENCE

‘NOTHING TO WORRY ABOUT’

CHRIS MIDGLEY, head of analytics at S&P Global Platts opened this year’s European Oil Storage Conference with an update on global crude oil fundamentals. ‘There is a lot less volatility in the market than you’d expect,’ Midgley explained. This is partly because strategic petroleum reserves are acting as a buffer, allowing the market to cope with up to six months of geopolitical tensions and partly because there is so much data available, so it is easier to plan ahead. Considering the ongoing geopolitical uncertainty, the oil price is lower than one might expect it to be, Midgley told the audience. At the end of 2018, the oil price rose to $86 a barrel, triggered by factors such as the drone attack on Saudi Arabia. Now the range is back down to around $55 - $65, where Midgley expects it to stay in the longer term. ‘This shows that microeconomics have a bigger impact on oil price than geopolitics.’ Another trend Midgley commented on was the changing dynamics of the shale market. ‘The rig count is decreasing rapidly. We are going to see much slower growth, with peak shale production expected in the next couple of years.’

In terms of the next trend in the European storage sector, the panel predicts there will be a demand for heated storage tanks to store products such as biodiesel and hydrotreated vegetable oil (HVO). ‘There is a lot of new capacity coming online,’ said Oomen, ‘particularly smaller tanks for the chemical sector of around 2000-2,500 m2.’ van Thiel echoed this, saying there is a clear demand for chemical tanks, particularly in southern Europe. ‘As the energy transition evolves, the market will need even more tanks for renewable chemicals,’ he added. On the topic of the energy transition, the panel felt it was very dependent on where in the world you are situated. ‘We are investing in emerging markets,’ Pearl explained, ‘There isn’t any talk

‘There is a tremendous demand for heated tanks for biofuels’ Didier de Beaumont, commercial manager, Port of Amsterdam

about electric vehicles there. Many of the traditional hubs are sufficiently invested in, which is why we’re looking at new regions and also at renewable and chemical markets.’ Patrick Kulsen, managing director of Insights Global went on to discuss the market changes as a result of IMO 2020. Two years ago, a lot of high sulphur fuel oil (HSFO) moved from Rotterdam to Singapore and now there is hardly any. This means there is less demand for big fuel oil tanks. Very low sulphur fuel oil (VLSFO) prices are now almost as high as middle distillate prices, he explained. VLSFO is in steep backwardation and at the moment there aren’t any supply concerns. Kulsen also expects HSFO to be in contango in 2021 and predicts long term growth in bunker sales, which will support future tank demand. DOOM & GLOOM FOR REFINING 2019 was not a good year for refinery sector. It is first time that global refinery throughput declined without the economy being in recession.

EUROPEAN STORAGE SECTOR Jared Pearl, CCO of VTTI; Rutger van Thiel, CEO of Alkion Terminals, Raoul Oomen, broker for RVB Tank Storage Solutions and Didier de Beaumont, commercial manager at the Port of Amsterdam then updated delegates on the state of the play for the European storage sector. ‘Last year many people thought IMO 2020 would have a positive impact on the storage sector,’ Pearl reminded the audience, ‘and this has been largely accurate. The storage market is using more tanks to segregate different fuel grades and additional investment has been made into blending capabilities.’ PAGE 133

EVENTS PLATTS EUROPEAN OIL STORAGE CONFERENCE of close collaboration along the entire supply chain.

Implico and Brainum merged in December 2019. Fahland and Keulemans introduced their new concept of the ‘supply chain united’ and explained the impact it could have. One vital element of it is a fully cloud-based terminal management and automation system for liquid bulk terminals – a first in the industry. MORE CAPITAL THAN OPPORTUNITY Source: IEA

Oil demand has been experiencing a slowdown since the halfway through 2018, although there was some recovery towards the end of 2019 and the International Energy Agency expects a rebound in 2020. Crude oil demand fared even worse, with crude prices declining $8 a barrel. ‘Peak crude oil demand is behind us for now,’ said Kristine Petrosyan, oil market analyst for the IEA, ‘It peaked in Q3 2018.’ She expects the next peak in Q3 2020. Petrosyan attributed the 2019 refining slowdown to product overhang – there was overproduction in 2017 and 2018. Refining is a cyclical business, so Q3 2019 was the bottom of a 30-month annual growth cycle with refining activity is expected to pick up in 2020. Refinery growth in the past few years has been largely led by Middle East and Asia – this accounts for 68% of demand growth between 2015 – 2020, especially for refined products. In 2019, China overtook Europe in terms of refining activity. Without massive shutdowns, Chinese installed refining capacity may well reach US levels. The Caribbean on the other hand lost two million barrels a day of refining capacity over the past 10 years, mostly due to Venezuela but also due to the closure of several large refineries. Petrosyan finished her presentation by talking about China’s Bohai Bay, which she thinks could be the next hub and could even become the equivalent of the US Gulf Coast in terms of downstream infrastructure. There is a significant amount of tank capacity here, although much of this is not independently owned. ‘SUPPLY CHAIN UNITED’ In a special sponsored session Thomas Fahland, head of solution management at Implico, and Martin Keulemans, MD of Brainum, discussed a potentially interconnected downstream future, where companies embrace the idea

PAGE 134

It was clear from listening to Berend Paasman of DNB’s presentation that the storage sector is experiencing healthy levels of investment at the moment. ‘With interest rates low, there is more capital available than there is opportunity,’ he explained. ‘There are plenty of transactions happening, averaging around 12 – 14 x EBITDA, and lots of big players are consolidating their assets.’ OIL & GAS REMAIN CRUCIAL IN 2050 Bassam Fattouh, director at the Oxford Institute for Energy Studies told the audience how global energy demand has risen at 2.8% per annum since 1990 and has sustained a 2.2% annualised pace of growth so far in the 21st century. Assuming even a lower energy consumption growth of 1.7% by 2050, global energy consumption is estimated to surpass 100,000-terawatt hour, driven by population growth, rising incomes and decreasing poverty. The consensus is that energy demand in 2050 cannot be met with today’s renewable technologies alone so fossil fuels will continue to play a key role in the energy mix. Having said that, Fattouh explained that the speed of the energy transition is moving

‘2019 is the first year that global refinery throughput declined without the economy being in recession’ Kristine Petrosyan, oil market analyst, IEA

much faster than people thought it would five years ago. However, an accelerated transition poses a significant challenge for independent oil companies (IOCs) because it undermines their profitability. In 2018, only 8% of the sector’s patents were in new energies – the remaining 92% were aimed at improving the efficiency of fossil fuels. IOCs are very well positioned to help drive the energy transition – they have the capital available to invest, they have experience in managing large projects and they have the desire to remain the world’s leading energy companies. However, in oil exporting countries especially, their economies are reliant on oil. Any disruption associated with the energy transition will impact the country’s social well-being. Keeping the oil price high will accelerates the energy transition, as companies continue to search for cheaper, renewable alternatives. THE DEATH OF THE STORAGE TERMINAL? With a dramatic presentation title, Ellen Ruhotas, managing director of Zenith Terminals addressed the question of what impact the energy transition will have on the storage sector. She outlined various different forecasts relating to energy demand and concluded by saying that all the forecasts show there will be an increase in energy demand. Looking at one of these forecasts – ExxonMobil’s 2019 Energy Outlook – Ruhotas explained that by 2040 there would be a 25% increase in oil demand and aviation demand will grow by 2.2% a year. Oil demand is of course regional, she added, saying that in Asia, Africa and Middle East, oil demand could be 29-49% higher. Next Ruhotas went on to explain that the energy transition will be a slow process. Currently, less than 1% of global car sales are electric vehicles and every week there is one coal-fired power station added in the world. ‘With the energy transition, we will go back to the emission levels from 1990, not to zero,’ she emphasised. ‘Where there is uncertainty, there is opportunity in the storage sector, so in conclusion the storage terminal industry is not dead and there is nothing to worry about.’

22nd ANNUAL

I N T E R N AT I O N A L A B O V E G R O U N D S T O R A G E TA N K CONFERENCE & TRADE SHOW April 15-17, 2020 | Orlando, Florida This conference is designed for engineers, managers or other individuals involved with operations, construction, environmental compliance, spill prevention and response or management activities associated with aboveground storage tanks.

FREE TRADE SHOW SCHEDULE OF EVENTS:

FREE EPA SPCC & FRP SHORT COURSE April 14, 2020

WELCOME RECEPTION April 14, 2020 13TH ANNUAL GOLF TOURNAMENT April 14, 2020

NETWORK MIXER April 15, 2020 FREE TRADE SHOW ENTRY April 15-16, 2020

NISTM

NATIONAL INSTITUTE FOR STORAGE TANK MANAGEMENT

AST CONFERENCE April 15-17, 2020

FOR ADVERTISING, SPONSORSHIPS, AND SPEAKER OPPORTUNITIES, CALL 800.827.3515 OR 011.813.600.4024

To Register, Call or Visit the Website: 800.827.3515 | www.NISTM.org International 011.813.600.4024

AT THE BACK ADVERTISERS INDEX & SOCIAL STORAGE

ADVERTISERS INDEX ADROC tech KOKS Group.............................................93 Advanced 3D Laser Solutions .......................................7 AP Networks .....................................................................29 Arabian Chemical Terminals ........Outside Back Cover Arflu .....................................................................................90 AT&V.....................................................................................65 AUMA................................................................................... 73 Borsig....................................................................................71 BOXY Blind Valve............................................................. 97 BS&B ...................................................................................38 Canada Gas and LNG....................................................120 Cashco................................................................................ 117 ChemUK............................................................................108 Contanda............................................................................49 Cool Sorption ................................................................. 122 Cryogenic Storage Tanks International Conference ............................. 128 CST Industries........................................................... 58, 59 DCM EMBA.........................................................................96 Denso ................................................................................. 111 ECO Valves ........................................................................36 EEMUA........................................................................... 15, 27 Emerson ............................................................ Front Cover

EPS Group.........................................................................115 FETSA...................................................................................17 Gastech............................................................................. 132 Global Energy Show ..................................................... 124 Hazards30 .........................................................................80 HES International ............................................................. 3 HMT................................................................................50, 51 ILTA....................................................................................... 25 Implico & Brainum ...........................................................31 Indian Bulk Liquid Storage Summit.........................118 Interterminals ...................................................................19 Ivens .....................................................................................81 Kanon ......................................................Inside Front Cover Koerting .............................................................................69 Madesta ............................................................................. 75 Marine Audit Services ..................................................131 Matrix Applied Technologies.......................................43 Midwest Steel.................................................................... 11 Milton Roy Mixing ........................................................... 24 Motherwell Tank Gauging ..........................................33 Navigator............................................................................13 NISTM............................................................................... 135 Nordic Storage ...............................................................20

Oreco................................................................................... 52 Polix..................................................................................... 72 Protego .............................................................................116 Rarechem Industries ....................................................26 Rawell...................................................................................21 Rosen ................................................................................ 105 Saint Gobain PAM.......................................................... 23 Scully ..................................................................................99 Spilltration ......................................................................... 9 Standic ................................................................................ 5 StocExpo .................................................................... 84, 85 SUMA...................................................................................70 SVT Loading Systems................................................100 Tank Farm Services ......................................................46 TECAM................................................................................ 74 TEPSA..................................................................................14 Triax Securite ................................................................ 107 TWTG...................................................................................39 UKIFDA Expo ................................................................. 127 Varec....................................................................................40 Zeeco ...................................................................................16

SOCIAL STORAGE Find out what the storage terminal sector has been saying on Twitter.

@DEVIKAKRISHNAK

@ASCENTOILFUND

@TRADEFLOORAUDIO

Stranded tankers, full storage tanks: coronavirus leads to #crude glut in China. Charterers are grappling with demurrage costs as vessels await discharge, prompting some shippers to try to offload #oil to older tankers that cost less

The oil market was tighter than consensus thought before the virus. In Jan, OECD inventories only built by 9mm barrels versus a normal 38mm build according to the IEA. This low build was despite the warm weather which could have added 20mm barrels to storage! #OOTT

Biggest contango since 2018 could buoy floating oil storage ... RTRS Oil market this week took a turn that could prompt traders to consider storing oil offshore as a growing crude surplus threatens to worsen #OIL #OOTT

@DOROTHYDANKEL

@PFLPETROLEUM

@IEA

Can we re-purpose abandoned oil wells for CO2 storage #CCS? Sarah Gasda, Research Director @NORCEresearch Energy discusses well strategies: majority of old wells in Alberta study can be suitable 4 CO2 injection w monitoring. #ACTOMccs, #WomenInSTEM

Canadian crude oil storage is expected to remain higher than average, which should keep Canadian crude prices down. (#WTI) in 2020

Demand for hydrogen continues to rise, almost entirely supplied from fossil fuels. As a consequence, production of hydrogen is responsible for emissions of around 830m tonnes of CO2 per year, equivalent to the emissions of the UK & Indonesia combined

@tankstorageinfo

Tank Storage Magazine

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EVENTS 2020 CALENDAR

EVENTS 2020 10th – 12th March 2020

Official Publication STOCEXPO Rotterdam, Netherlands StocExpo is the largest and longest running event for the global tank storage industry. As the number one meeting place for anyone involved in tank storage for over 15 years, StocExpo is the ideal event to help you stay ahead of the competition, network and gain new business. www.stocexpo.com 10th March 2020

Official Publication GLOBAL TANK STORAGE AWARDS Floating Pavilion, Rotterdam The Global Tank Storage Awards highlight those that excel in a range of different categories relating to terminal achievements, equipment innovations, ports and individual success. www.tankstoragemag.com/awards 16th – 18th March 2020

Official Publication MARCUS EVANS – TANKS AND TERMINALS 2020 Dubai, UAE The conference will include aspects pertaining to new IMO regulations, tank overfills, corrosion and erosion issues, leakages and emissions, fire safety – detection and prevention. www.marcusevans.com/conference

12th – 14th May 2020

Media Partner CANADA GAS & LNG EXHIBITION & CONFERENCE Vancouver, Canada www.canadagaslng.com

13th – 14th May 2020

Official Tank Storage Publication CHEMUK 2020 Manchester, UK The ChemUK Expo & speaker programme brings together the UK’s industrial chemicals, biochemical, chemicals processing & chemical product formulation industries. www.chemicalukexpo.com

8th – 10th June 2020

Silver Sponsor 40TH INTERNATIONAL OPERATING CONFERENCE & TRADESHOW Houston, Texas Celebrating 40 years of bringing the liquid terminal industry together the ILTA offers unparalleled opportunities for terminal operators and vendors alike. The 2020 conference speakers will examine strategies for improving operational efficiency, promoting worker safety, managing terminals and achieving regulatory compliance. www.ilta.org

15th – 17th April 2020 10th – 11th June 2020

Media Partner NISTM 22ND ANNUAL INTERNATIONAL STORAGE TANK CONFERENCE & TRADESHOW Orlando, Florida www.nistm.org 16th April 2020

Official Publication INDIAN BULK LIQUID STORAGE SUMMIT Mumbai, India www.indianbulkstorage.com

Media Partner UKIFDA EXPO 2020 Liverpool, UK Now in its 40th year, UKIFDA (formerly FPS) Expo 2020, organised by liquid fuels trade association UK and Ireland Fuel Distributors Association, regularly brings together more than 100 exhibitors and attracts a worldwide audience of thousands. www.fpsonline.co.uk

16th – 17th June 2020

18th – 19th June 2020

Official Publication PGLC 2020 Barcelona, Spain www.pglc.biz

8th – 10th September 2020

Media Partner GASTECH EXHIBITION & CONFERENCE Singapore Expo, Singapore www.gastechevent.com

24th September 2020

Media Partner TANK STORAGE ASSOCIATION Coventry, UK www.tankstorage.org.uk

4th – 7th October 2020

Media Partner 54TH ANNUAL EPCA MEETING Budapest, Hungary www.epca.eu

9th – 12th November 2020

Media Partner ADIPEC Abu Dhabi National Exhibition Centre, Abu Dhabi, UAE www.adipec.com

19th – 20th November 2020

Official Publication THE MED HUB DAY 2020 Tarragona, Spain

24th – 25th November 2020

23rd – 24th April 2020

Official Publication CRYOGENIC STORAGE TANKS Munich, Germany www.tuvsud.com

Official Publication FETSA AGM & ANNUAL CONFERENCE Rotterdam, the Netherlands www.fetsa2020.eu

Official Publication INTERNATIONAL CONFERENCE ON FLAT BOTTOM STORAGE TANKS Munich, Germany www.tuvsud.com

CHEMICAL STORAGE IN THE MIDDLE EAST. COVERED.

With over 85,000m3 of liquid bulk storage in Saudi Arabia and terminals in Jubail and Yanbu, ACT is the perfect partner to import and export your chemicals or minerals safely and effective. Contact us to find out how we can help to leverage your chemical businesses in the Middle East.

Find out more at www.ArabianChemicalTerminals.com E: info@arabianchemicalterminals.com T: +966 12 652 0000