Tank Storage Magazine North America 2023 by Tank Storage Magazine

North America Edition | 2023 | Volume 19 | Issue 05

UPGRADING FOR SAFETY AND GREEN TARGETS Valleytank celebrates 50 years with a terminal expansion and eco-upgrades

WOMEN IN TANKS

BEST PRODUCTS, BEST PRACTICES

BP’s Sariyya Heydarova shares how her journey in offshore oil and gas was shaped by her upbringing

Cover star TIW Steel Platework reveals all about the company’s long industry experience and projects

Established 2005. Trusted. Valued. Influential.

An Employee Owned An Employee Owned Diversified Construction Diversified Construction An Employee Owned Services Company Services Company Diversified Construction An Employee Owned Services Company Diversified Construction An Employee Owned Services Company Diversified Construction An Employee Owned Services Company Diversified Construction Services Company

Turnkey Industrial Turnkey Industrial Turnkey Industrial Turnkey Industrial Construction Services Construction Services Turnkey Industrial Construction Services Construction Since 1973. Services Since 1973. Construction Services Since 1973. Since 1973. Turnkey Industrial Since 1973. Construction Services Turnkey Industrial TANKS TANKS TANKS TANKS Above storage tank design, Since 1973. Construction Services Above groundground storage tank design, Above ground storage tank Above ground storage tank design, construction, and repairs, meeting TANKS construction, and repairs, meeting design, construction, and repairs, construction, and repairs, meeting Since 1973. API-650, API-620, and API-653 standards. AboveAPI-620, ground storage tank design, API-650, and API-653 standards.

Your trusted supplier and installer of welded Your trusted supplier and installer of welded plastic piping systems, on-site fusion services, plastic piping systems, on-site fusion services, Your trusted supplier and installer of welded custom HDPE fabrication, geosynthetics, custom HDPEsystems, fabrication, geosynthetics, plastic piping on-site fusion services, secondary containment solutions, rubber lining, secondary containment solutions, rubber lining, custom HDPE fabrication, geosynthetics, Your trusted supplier andsystems, installer of welded erosion control and PROTEXTM liners TM erosion control systems, andfusion PROTEX liners secondary containment solutions, rubber lining, plastic piping systems, on-site services, & concrete mats. TM erosion control systems, and PROTEXand liners & concrete mats. custom HDPE fabrication, geosynthetics, Your trusted supplier installer of welded Your trusted supplier and installer of welded & concrete mats. secondary containment solutions, rubber lining, plastic piping systems, on-site fusion service plastic piping systems, on-site fusion services, TM erosion control systems, andfabrication, PROTEX liners custom HDPE geosynthetics, custom HDPE fabrication, geosynthetics, & concrete mats. Your trusted supplier andcontainment installer of welded secondary solutions, secondary containment solutions, rubber lining, rubber lin plastic piping erosion systems,control on-site fusion services, TM and PROTEXTM liner systems, erosion control systems, and PROTEX liners custom HDPE&fabrication, geosynthetics, concrete mats. & concrete mats. Your turnkey helical piling design aid, supplier, secondary containment solutions, rubber lining, Your turnkey helical piling design aid, supplier, TM meeting API-650, API-620, and erosion control systems, and PROTEX liners and installation team foraid, helical piling with Your turnkey helical piling design supplier, API-650, API-620, and API-653 standards. and installation team for helical piling with Laser scanning capabilities for new construction, and repairs, meeting & concrete mats.team Laser scanning capabilities for new diameters ranging from 1.5”-42”. We specialize in and installation for helical piling API-653 standards. Laser scanning diameters ranging from 1.5”-42”. Wewith specialize in Laser scanning capabilities for new a ranging variety of industries including oil & in gas and construction and repairs. Above ground storage tank design, diameters from 1.5”-42”. We specialize Your turnkey helical piling design aid,& supplier, API-650, API-620, and API-653 standards. a variety of industries including oil gas and construction and repairs. capabilities for new construction industrial applications. a variety of industries including oil & gas and construction and repairs. and installation team for helical piling with construction, and repairs, meeting industrial applications. Laser scanning capabilities for new industrial applications. and repairs. diameters ranging from 1.5”-42”. We specialize in Above ground storage tank design, Your turnkey helical piling design supplier, API-650, API-620, and API-653 standards. a variety of industries including oilaid, &piling gas and construction and repairs. Your turnkey helical design aid, suppli and installation team for helical piling with construction, and repairs, meeting industrial applications. Laser scanning capabilities for new and installation team for helicalinpiling with diameters ranging from 1.5”-42”. We specialize Your single-source solution for any project, Your single-source solution for Your turnkey diameters helical pilingranging design aid, supplier, We special API-650, API-620, and API-653 standards. GENERAL CONSTRUCTION Your single-source solution forany anyproject, project, a variety of industries including oilfrom & gas1.5”-42”. and construction and repairs. and installation team for pilingincluding with including small and large capital projects, a variety ofhelical industries oil & gas and industrial applications. including small and large capital projects, Your single-source solution for any Laser scanning capabilities for new including small and large capital projects, diameters ranging from 1.5”-42”. We specialize in industrial applications. Your single-source solution for any project, from mechanical piping to structural steel, project, including and large from mechanical piping tosmall structural steel, a variety of industries including oil & gas and construction and repairs. from mechanical piping to structural steel, Boots-on-the-ground safety training, safety Boots-on-the-ground safetytraining, training, safety including small and large capital industrial applications.safety equipment setting, civil, andprojects, more. Boots-on-the-ground safety capital projects, from mechanical program management, safety audits, OSHA equipment setting, civil, and more. equipment setting, civil, and more. program management,safety safetyaudits, audits, OSHA Your single-source solution for any project, program compliance, management, OSHA frompiping mechanical piping to structural steel, and other safety services for to structural steel, compliance,and andother other safety services for compliance, safety services for Boots-on-the-ground safety training, safety construction, manufacturing, and staffing. including small and civil, largeand capital projects, equipment setting, more. construction, manufacturing, and staffing. construction, manufacturing, staffing. equipment setting, civil, and more. program management, safetyand audits, OSHA Your solution for any project, from single-source mechanical piping to structural steel, compliance, and other safety services for Our Hammond, Louisiana facility offers Boots-on-the-ground safety training, safety including small and large capital projects, construction, manufacturing, and staffing. Our Hammond, Louisiana facility offers Our Hammond, Louisiana facility offers equipment setting, civil, and more. program management, safety audits, OSHA FABRICATION FACILITY Boots-on-the-ground safety training, safety 70,000 sq. feet for tank and pressure from mechanical piping topressure structural 70,000 sq. feet forfor tank and 70,000 sq. feet tank and pressure steel, compliance, and other safety services for program management, safety audits, OSHA Boots-on-the-ground safety training, safety Our Hammond, Louisiana facility offers construction, manufacturing, and staffing. vessel fabrication, including 10,000+ Our Hammond, Louisiana facility equipment setting, civil, and more. vessel fabrication, including 10,000+ sq. sq. vessel fabrication, including 10,000+ sq. program management, safety compliance, andaudits, otherOSHA safety services for 70,000 sq. feet for tank and fabrication. pressure oﬀers 70,000 sq. feet for tank feet dedicated to alloy compliance, and other safetymanufacturing, services for construction, and staffing. feet dedicated to alloy fabrication. feet dedicated to alloy fabrication. Our Hammond, Louisiana offers Yourmanufacturing, 24/7 resource for new and used generator vessel fabrication, including 10,000+ sq. construction, and staffing. Your used generator and pressure vesselfacility fabrication, Your24/7 24/7resource resourcefor fornew newand and used generator purchase or rental,aoffering a totalfor solution for 70,000 sq. feet to foralloy tankfabrication. and pressure purchase solution feetincluding dedicated purchaseor orrental, rental,offering offering atotal total solution for 10,000+ sq. feet dedicated service andfor maintenance ofand all diesel and natural service and maintenance of all diesel natural Our Hammond, Louisiana facility offers Your 24/7 resource new and used generator service and maintenance of all diesel and natural vessel fabrication, including 10,000+ sq. gas powered generators. to alloy fabrication. gas powered generators. purchase or rental, offering a total solution for gas powered generators. 70,000 sq. feet to foralloy tankfabrication. and pressure feet dedicated service and maintenance of all diesel and natural Yourpowered 24/7 resource for new and used generator vessel fabrication, including 10,000+ sq. gas generators. purchase or rental, offering a total solution for feet dedicated to alloy fabrication. service and maintenance of all diesel natural Your 24/7 resource forand new and used gener Your 24/7 resource for new and used generator gas powered generators. purchase or rental, a total solution purchase or rental, offering a total offering solution for Baton Rouge (225) 226-7400 Houston (281)470-7252 470-7252 Hammond (225) 226-7400 ||www.palagroup.com Baton Rouge (225) 226-7400 | Houston (281) 470-7252 | Hammond (225) 226-7400 |maintenance www.palagroup.com service andof all diesel and na Baton Rouge (225) 226-7400 | |Houston (281) || Hammond (225) 226-7400 www.palagroup.com service and maintenance all diesel andof natural gas powered generators. gas powered generators.

TANKS TANKS

GENERAL CONSTRUCTION GENERAL CONSTRUCTION GENERAL CONSTRUCTION GENERAL CONSTRUCTION GENERAL CONSTRUCTION

GENERAL CONSTRUCTION FABRICATION FACILITY FABRICATION FACILITY FABRICATION FACILITY FABRICATION FACILITY FABRICATION FACILITY FABRICATION FACILITY

UP FRONT CONTENTS

CONTENTS North America Edition 2023 | Volume 19 | Issue 05

UP FRONT 04 Contributors

04 Advertiser index 06 Social Storage 06 Editor’s Note

NEWS UPDATE 08 North America 09 Energy Transition 15 Carbon Capture 16 Technical 18 Tank Terminal Update 20 Incident Report

EXCLUSIVE INTERVIEWS 22 Best product, best practices TIW Steel Platework’s general manager, Daniel Wigmore, speaks to Tank Storage Magazine about the company’s long industry experience and projects 24 Leading in renewable diesel and sustainable aviation fuel Daniel Strydom and Henrik Olsson from Stolthaven New Orleans discuss trends in the storage of renewable diesel and sustainable aviation fuel 26 Opportunities in offshore Well completion and intervention engineer, Sariyya Heydarova tells Molly Cooper about her connection to the industry 28 Valleytank celebrates 50th year with safety and eco-upgrades Tank Storage Magazine speaks with John Hoblyn, director at Valleytank, about celebrating expansion alongside a momentous anniversary 30 Growth, community & future-proofing The team at Flint Hills Resources explains how keeping up with demand and community engagement is enhancing its services

North America Edition | 2023 | Volume 19 | Issue 05

UPGRADING FOR SAFETY AND GREEN TARGETS Valleytank celebrates 50 years with a terminal expansion and eco-upgrades

WOMEN IN TANKS

BEST PRODUCTS, BEST PRACTICES

BP’s Sariyya Heydarova shares how her journey in offshore oil and gas was shaped by her upbringing

Cover star TIW Steel Platework reveals all about the company’s long industry experience and projects

32 Building tanks, reputation & relationships Proud of its long-term partnerships with terminal companies, Lexicon Energy Services shares the secrets to completing successful tank projects

Established 2005. Trusted. Valued. Influential.

Front cover courtesy: TIW Steel Platework Inc. PAGE 01

UP FRONT CONTENTS

MARKET ANALYSIS

34 US appetite for heavier barrels to remain robust in the medium-term Kpler’s Johannes Rauball shares insights into the global crude market 36 The rise of hydrogen hubs in North America Cyann Fielding asks the experts at EY about the emergence of North American hydrogen hubs following the Inflation Reduction Act and governmental funding 38 Ensuring a safe, responsible transition Kathryn Clay, president of the ILTA, explores how the ILTA is influencing policy to support a reasonable transition to new firefighting foams 40 Talent onboarding & procedure clarity

Christian McDermott from Voovio shares how implementing procedure simulation can solve the tank storage industry’s workforce challenges

TECHNICAL FEATURES 42 Designing & fabricating aboveground storage tanks Celebrating 50 years of excellence, the experts at PALA Group share the secrets to a successful partnership and AST build 44 Getting to know your AST’s fixed roof structure Derek Slovenec from The Equity Engineering Group explains how cone roof support structures function and how to prioritize inspections 46 Principal threat to storage tanks ignored by standards Protection against electromagnetic fields must be introduced for the petrochemical industry, says Amir Rizk from Lightning Electrotechnologies

48 Harnessing renewables Clean energy finance company EDI Capital explains how introducing on-site renewable projects could offer the best return on investment when it comes to offsetting emissions at the terminal 49 Emissions reductions, vapor recovery and the energy transition Cyann Fielding investigates how vapor recovery can help terminals hit green targets; and what regulations are changing 52 What to do with tank bottom corrosion? Tank storage specialist John Cornell explains why tank bottom corrosion occurs and how to prevent it

EVENTS 55 Speaker preview: NISTM Woodlands Ahead of the NISTM conference in December 2023, TCEQ and Pierre Legault share the highlights from their scheduled talks on aboveground storage vessel safety and inspections in remote locations

AT THE BACK 57 Events 2023/24

PAGE 02

For For your your Next Next Tank Tank Project, Project,

DISCOVER THE ATEC ADVANTAGE

Quality, Quality, Safety Safety and and On-time On-time Completion Completion you you can can rely rely on on

ATEC Steel, 1000 W. 5th St., Baxter Springs, KS 66713 877.457.5352

877.404.8206

info@atecsteel.com

WWW.ATECSTEEL.COM

UP FRONT CONTRIBUTORS

CONTRIBUTORS ADVERTISERS INDEX

EDITORIAL

TIW Steel Platework.....................................Front Cover

ANAMIKA TALWARIA

MOLLY COOPER

PALA Group......................................Inside Front Cover

Anamika is the editor for Tank Storage Magazine. She curates all the fantastic content in every edition and online.

Molly is a journalist for Tank Storage Magazine. In this edition she’s covered all things NISTM and interviewed our front cover company, TIW Steel Platework on page 22.

ATEC Steel.........................................................................3 Equity Engineering Group................................................5 Rosen.................................................................................7 Keller................................................................................. 9 Lexicon Energy Services............................................... 11 ILTA...................................................................................13 EEMUA.............................................................................15 Keller................................................................................16 EEMUA............................................................................. 17 StocExpo..........................................................................19 AntwerpXL...................................................................... 25

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

CYANN FIELDING

FETSA.............................................................................. 33

Cyann is a journalist for Tank Storage Magazine. Read her technical feature on vapor recovery on page 49.

ValleyTank...................................................... Back Cover

USA DeBusk....................................................................51

ISSN 1750-841X

SALES & MARKETING PORTFOLIO DIRECTOR

MARKETING MANAGER

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

Ream Demnati ream.demnati@easyfairs.com

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

MARKETING EXECUTIVE Shannon Maguire shannon.maguire@easyfairs.com HEAD OF DATA Beth Welcomme beth.welcomme@easyfairs.com

CONNECT WITH US

Josh Lyle +44 (0)20 3196 4364 josh.lyle@easyfairs.com

CEO EASYFAIRS UK & GLOBAL

@tankstorageinfo

Matt Benyon matt.benyon@easyfairs.com

Tank Storage Magazine

KEY ACCOUNT MANAGER

Anne Lafère anne.lafere@easyfairs.com

Gary Kakoullis +44 (0)20 3196 4248 gary.kakoullis@easyfairs.com

PAGE 04

Tank Storage Magazine

IMPROVE STORAGE TANK RELIABILITY

FITNESS-FOR-SERVICE (FFS)

E²G | The Equity Engineering Group, Inc. provides world-class engineering support for storage tank owners & operators. Our team of experts leverages design, inspection, and advanced analysis experience to solve problems both big and small.

DAMAGE MECHANISMS ASSESSMENTS

We help you ensure safety, manage risk, and maintain profitability throughout your tank’s lifecycle. RISK-BASED INSPECTION (RBI)

SAFETY. RELIABILITY. INTEGRITY. ⊲ Corrosion & Metal Loss

WE SOLVE PROBLEMS

E 2G SOFTWARE

⊲ Shell Distortions ⊲ Foundation Settlement ⊲ Structural Concerns ⊲ Overpressure & Overfill ⊲ Cracking & Brittle Fracture

CONTACT OUR TEAM

VISIT

Sales@E2G.com

www.E2G.com

ANSWERS FOR TODAY. INSIGHTS FOR TOMORROW.

EQUITY ENGINEERING PRACTICES (EEPs)

UP FRONT EDITOR’S NOTE

EDITOR’S NOTE

AS I TYPE this, half of our team are away from the office at events. David Kelly, our international sales manager is in Denver, CO, at the API conference and exhibition, meeting with many of you lovely people, and hopefully securing some deals for our next North America-focused issue! One of our journalists, Cyann, is in the Netherlands at the World Hydrogen Congress, ready to bring you the latest technologies and insights from the future fuels sector. Make sure you become a member of the Tank Storage community to keep up-to-date with our latest exclusive interviews and articles.

And speaking of exclusives, our North America edition is packed with terminal operator interviews, event previews and key regulatory updates, curated especially for our colleagues across the pond. On page 26, Molly Cooper interviews BP’s Sariyya Heydarova about being a woman in the industry. We’ve got terminal profiles with Stolthaven New Orleans (page 24), Canada’s Valleytank (page 28) and Texasbased Flint Hills Resources (page 30).

on page 38. Don’t miss our technical features, covering everything from EPC tank construction (page 42) to carbon offset technologies (page 48). Plus, we have an exclusive preview of the NISTM Woodlands event in December 2023 on page 55 – I’m looking forward to seeing many of you there!

We’ve also got exclusive insights from Kpler on the demand for crude (page 34) and an update from the ILTA about firefighting foams and regulations

Anamika

Best wishes,

SOCIAL STORAGE Most liked posts this fall: Tank Storage Magazine

Tank Storage Magazine

13,025 followers 2w • Edited

Tank Storage Magazine

13,025 followers 2w • Edited

13,025 followers 5 days • Edited

Vopak has spent €30 million in repurposing 22 tanks at its Los Angeles terminal in California, USA, to establish a combined capacity of 148,000 m³ (39 million gallons).

Exclusive Interview from Tank Storage Magazine’s Chemical Supplement: Molly Cooper speaks to Paul Voogt, CCO and commercial director at STANDIC about the chemical terminal’s activities and future expansions.

‘Neste is fully committed to supporting the energy transition in the US as well as globally via working closely together with partners to increase the availability of our renewable fuels. Our cooperation with Vopak shows how repurposing existing fuel distribution infrastructure can accelerate the much-needed transition to renewable energy,’ says Annika Tibbe, acting president for Neste US.

Read online now: https://lnkd.in/e_WfjZAs #tankstorage #storagetank #chemical #excIsuive #interview #activites #expansions #antwerp #energy #transition #storage #terminal

Unveil the captivating story of Star Energy Advario in our exclusive interview! In this exclusive feature, Molly Cooper speaks to Andrew Drayton the CEO of SEAD, about the terminal’s incredible journey in the heart of the Middle East. This is a must-read for terminal operators and product owners alike! Explore the world of SEAD and gain insights into the company’s inspiring vision here: https://bit.ly/3teISxQ #TankStorageMagazine #Publication #TankTerminal #BulkLiquids #OilandGas #FutureFuels #Hydrogen #Ammonia #News #EnergyTransition #TankStorage #StorageTerminal #StorageTank #MENA

Read online now: https://lnkd.in/eDf86RFH #tankstorage #vopak #neste #losangeles #california #america #unitedstates #LA #portstorage #storageport #energytransition #futurefuels #SAF #sustainableaviationfull #chemicals #petrochemicals #renewableenergy

Vopak and Neste advance energy transition in California 97 • 3 reposts

Comment

PAGE 06

Exclusive interview: STANDIC 3,606 impressions

62 • 1 comment • 6 reposts

Comment

Exclusive interview: Star Energy Advario 4,225 impressions

112 • 7 comments • 4 reposts

Comment

3,844 impressions

The syntheses of non-destructive testing and integrity allows for the comprehensive understanding of an asset’s safety, lifetime, and performance. By bringing together technology, expertise, and consultancy, we become your partner in reliable decision-making. | Always a leading innovator, we deliver solutions that give operators confidence in their assets, ensuring safety and compliance with accurate diagnostic data and dedicated integrity services to protect and manage plants & terminals.

Comprehensive Asset Management

www.rosen-group.com

NEWS UPDATE NORTH AMERICA

NEWS UPDATE A summary of tank storage news across North America Canada

COASTAL GASLINK ACHIEVES 90% COMPLETION Coastal GasLink’s pipeline (TC Energy natural gas pipeline) which is under construction in British Columbia, Canada, has announced 90% completion. Bevin Wirzba, Coastal GasLink president says: ‘It is exciting to see the tremendous progress that has been made this year. When building this extremely complex and critical infrastructure, each percentage represents a hard-fought achievement… As we reach the mid-way mark of this year, Section 6 now has 100% of pipe installed with key sections soon to follow as we work to complete the remaining 10%.’ Section 6 of the pipeline stretches 63 km from south of Burns Lake to south of Houston. This achieved 100% pipe installation in June, following Sections 1 and 4 which achieved this milestone last year. Coastal GasLink aims to complete the project by December 2023.

USA

US OIL AND US GAIN FORM US ENERGY Supplier and terminal operator of refined products and renewable fuels company, US Oil, and developer of alternative fuels company, US Gain, have announced the formation of a combined company, US Energy. US Energy is a vertically integrated energy solutions provider, proficient in refined products, alternative fuels, and environmental credits. Its comprehensive portfolio of assets, paired with risk management, financial services, and advisory insights, offers customers realistic, executable strategies that satisfy both their economic and environmental goals. As a key supplier to the transportation market, US Energy offers diesel, gasoline, natural gas liquids, ethanol, biodiesel, renewable diesel, compressed natural gas, renewable natural gas, electric charging solutions, hydrogen, and a variety of carbon credits.

PAGE 08

Eric Kessenich, CEO at US Venture says: ‘This reunion is an important milestone for our company. While our roots remain in the refined products side of our business, we recognize the need to offer a more diverse range of solutions under one brand as our customers’ needs evolve – ultimately becoming an energyagnostic solutions provider. With US Oil’s tenure in refined products and US Gain’s expertise in renewables, we knew we had an opportunity to service our customers with a more comprehensive offering and a streamlined experience.’

USA

US PIPELINE REGULATOR AWARDS $15 MILLION TO IMPROVE SAFETY The US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has awarded $14.8 million in grants for pipeline safety training and technological research.

The grants, authorized under the 2020 Protecting Our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act, add to the $64.4 million of funding in August for the safety of pipeline and underground natural gas storage operations. The funds will support projects spanning from safety training and educational initiatives to advancements in safety tech, with damage prevention centers, community organizations, non-profits and six universities standing to benefit. The largest share of $5.8 million has been allocated to support training for incident response related to transportation of gas or hazardous liquids transportation through pipelines. This is followed by $4.3 million for research on carbon dioxide, hydrogen, and older, higher risk pipelines, $2.6 million for damage prevention by states, and $2 million for technical assistance. Last month, PHMSA also proposed new rules to improve safety on the country’s gas distribution pipelines through the improvement of emergency response plans, integrity management plans and operation manuals.

Don’t let the ground dictate your tank capacity

Design & build services for: • Site preparation and access

• New tank support solutions

• Existing tank support solutions • Terminal piping - support and installation

Keller is the industry leader in design-build foundation support for the upstream and downstream oil and gas storage sector.

Serving the industry since the early 1990s, Keller has the knowledge and experience to help you maximize the storage capacity of any tank site.

See how Keller can engineer an optimal solution on your next project.

• Waste management and environmental remediation

800-456-6548 | keller-na.com

NEWS UPDATE NORTH AMERICA

USA

CHEVRON BUYS WORLD’S BIGGEST HYDROGEN STORAGE PLANT Chevron has acquired a majority stake in the world’s largest proposed storage facility for hydrogen from renewable energy, ACES Delta. ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development. The Delta, Utah, project last year received the first US Department of Energy loan for clean energy in nearly a decade, of $504 million.

renewable diesel, vegetable and tropical oils, and chemicals. Our Greener and Cleaner strategy is working, and we anticipate continuing to grow our nonpetroleum share of revenue over the next several years through deployment of capital for new projects supporting the energy transition.’

USA

CUMMINS AND CHEVRON ANNOUNCE STRATEGIC COLLABORATION

Chevron wants to develop ‘a largescale, hydrogen platform that provides affordable, reliable, ever-cleaner energy,’ says Austin Knight, vice president of hydrogen, Chevron New Energies.

Cummins and Chevron USA, have announced a memorandum of understanding (MoU) to leverage complementary positioning in hydrogen, natural gas, and other lower carbon fuel value chains.

The facility will use electrolysis powered by wind and solar to produce hydrogen, which will be stored and dispatched from solution-mined salt caverns.

The announcement expands the two companies’ previous strategic collaboration on hydrogen and renewable natural gas.

The first project for the acquisition, designed to convert and store up to 100 metric tons per day of hydrogen, is under construction and is expected to enter commercial-scale operations in mid-2025.

Jennifer Rumsey, president and CEO, Cummins says: ‘By collaborating strategically with Chevron, we plan to improve access to fuel and infrastructure for our customers, helping grow the availability of alternative and renewable fuels while reducing emissions.’

USA

IMTT ANNOUNCES SUSTAINABILITYLINKED LOAN FACILITY Handler and storage of bulk liquid products, IMTT has announced that ITT Holdings has successfully amended its existing revolving credit facility to include incentive pricing terms related to achieving various sustainability performance targets. The facility represents the company’s inaugural sustainability-linked loan and is issued under IMTT’s recently developed sustainability linked issuance framework. The framework outlines key performance indicators related to environmental and social factors including: • The percentage of new capital expenditures related to increasing IMTT’s ability to store and handle • Supplier diversity Carlin Conner, chairman and CEO of IMTT, says: ‘We are reshaping our portfolio so that over half of IMTT’s revenue in 2023 will be generated from the handling of non-petroleum products, such as renewable diesel feedstocks,

PAGE 10

‘Collaborations like this one with Cummins are intended to make energy and global supply chains more affordable and reliable...’ adds Chevron’s president of Americas products, Andy Walz.

USA

VITOL’S VTX TO ADD TO SOUTHERN DELAWARE BASIN Vitol’s US upstream company, VTX Energy Partners has agreed to acquire 12,000 net leasehold acres contiguous with the Delaware Basin Resources position, acquired in March, bringing its total southern Delaware Basin position to 47,000 net acres. It is VTX’s second acquisition since the partnership was established by Vitol and VTX last year. The assets include 12,000 net leasehold acres with current daily production of approximately 4 Mboepd. Gene Shepherd, VTX CEO, says: ‘This opportunity to acquire high quality inventory and water infrastructure, contiguous to our recently closed acquisition of Delaware Basin Resources, advances VTX’s goal of building a highly profitable US Lower 48 upstream business with scale. With Vitol’s unique market insights, expertise and funding capabilities, we see additional opportunity to grow our business, with our current focus in the southern Delaware Basin.’ Ben Marshall, Vitol head of Americas, adds: ‘We have always thought about VTX as a growth platform and are thrilled to see the team secure a strategic opportunity of size so soon after their initial acquisition. Our appetite for investment in the upstream sector is substantial and we remain excited about the growth prospects for VTX.’

NEWS UPDATE ENERGY TRANSITION

USA

JAL AND SHELL AVIATION SIGN AGREEMENT FOR SAF Japan Airlines (JAL) has signed an agreement with Shell Aviation for its aircraft to be refuelled in Los Angeles with sustainable aviation fuel (SAF) from 2025. This agreement supports JAL’s ESG target of replacing 1% of its whole jet fuel amount with SAF in fiscal year 2025. Under the agreement, Shell will supply JAL with SAF volumes equivalent to its current estimated jet fuel uplifts in Los Angeles over the supply period. The SAF supplied emits 75% less CO 2 than conventional jet fuel when used neat and the associated lifecycle emission reduction from this agreement amounts to more than 47,000 tons of CO 2 on an annual basis. JAL Group will continue to accelerate SAF procurements globally and make efforts toward replacing 10% of its jet fuel consumption with SAF in 2030 in order to achieve net zero emission by 2050.

The EPA’s proposed amendments to subpart W of the GHG reporting program would address gaps in the total methane emissions reported by facilities by adding several new covered sources such as ‘other large release events’, which would capture abnormal methane emission events that are not fully accounted for using existing methods. These changes to address gaps in emissions reporting will improve and advance a key program that underpins President Biden’s ambitious climate agenda.

USA USA

US EPA TO REVISE GREENHOUSE GAS REPORTING PROGRAM The US Environmental Protection Agency (EPA) has issued a proposal to amend reporting requirements for petroleum and natural gas systems under EPA’s Greenhouse Gas Reporting Program. The proposed revisions would improve the accuracy of reported emissions of greenhouse gases (GHG), including methane, one of the primary drivers of the climate crisis, from applicable petroleum and natural gas facilities, consistent with the Methane Emissions Reduction Program under the Inflation Reduction Act. ‘The Biden-Harris Administration is moving urgently to reduce climate pollution, and EPA is working to ensure science leads the way with the most accurate emissions data possible,’ says Joseph Goffman, at the EPA’s Office of Air and Radiation. ‘The proposed revisions to EPA’s Greenhouse Gas Reporting Program will leverage advancements in technology to produce high-quality, long-term data for emitters, contributing important insights into emissions trends as we work to protect people and the planet.’ PAGE 12

ENERGY VAULT SELECTS CHART HYDROGEN TECHNOLOGY Sustainable grid-scale energy storage solutions, Energy Vault Holdings has selected Chart as the supplier of an integrated liquid hydrogen storage and fuel delivery system. The system will be for a green hydrogen long-duration energy storage system (BH-ESS) used in conjunction with a utility-scale battery to provide back-up power to the city of Calistoga, California. The hybrid generation/storage facility will not emit localized pollutants such as nitrogen oxides and particulate matter when generating electricity to power the microgrid and this represents a significant step toward realizing the California Public Utilities Commission’s vision of cleaner forms of microgrid generation. Marco Terruzzin, chief commercial and product officer, Energy Vault says: ‘Chart has deep expertise in advanced solutions to store liquid hydrogen and their technology is an ideal fit for the hybrid green hydrogen energy storage system we are building for PG&E in Calistoga. We have assembled a team of

best-in-class partners with proven track records to ensure successful deployment of this innovative microgrid project which will deliver clean, reliable power to the Calistoga community.’

USA

GEVO JOINS WITH MCDERMOTT FOR SAF Gevo has entered into a master services agreement (MSA) with a subsidiary of McDermott to provide front end engineering and early planning services for Gevo’s development of multiple sustainable aviation fuel facilities. The first facility, Net-Zero 1, is expected to be located near Lake Preston, South Dakota. The Net-Zero 1 plant is expected to produce up to 65 million gallons (246,000 m3) of sustainable aviation fuel (SAF), diesel, renewable gasoline that, when consumed, is designed to have a lifecycle net-zero greenhouse gas footprint. Under the scope of the MSA, McDermott will provide engineering, execution planning and pricing for the engineering, procurement, and construction (EPC) phase of Gevo’s Net-Zero 1 project. The MSA is expected to lead to a final EPC agreement with Gevo for its Net-Zero 1 project to be finalised in coordination with the timing of Gevo’s financing activities for its Net-Zero 1 project. ‘Gevo’s Net-Zero plant design with its focus on carbohydrates as feedstock, has been carefully chosen for its exceptional cost-effectiveness, reliability, and scalability to meet the surging demand for sustainable aviation fuel and renewable hydrocarbons. This MSA is the first step towards adding McDermott as a project EPC partner,’ says Dr. Chris Ryan, president and chief operating officer of Gevo.

International Operating Conference & Trade Show

May 6-8

HOU

2024

ILTA 2024 is the largest event focused exclusively on the business and technology of liquid terminals.

Packed with opportunities to connect with thousands of industry professionals, learn key best practices and discover the latest equipment and real-world industry solutions.

Plan now to attend!

ilta.org

NEWS UPDATE ENERGY TRANSITION

USA

JERA, CONOCOPHILLIPS AND UNIPER TO SOURCE LOW-CARBON HYDROGEN/AMMONIA SUPPLY Energy companies Jera and Uniper have announced a non-binding heads of agreement together with hydrocarbon exploration and production company, ConocoPhillips, for the sale of ammonia to Uniper. The project would have an initial production capacity of 2 MTPA of low-carbon ammonia with potential for expansion in the future. The companies plan to jointly develop the production facility project which would accelerate production and supply of lowcarbon fuel to markets in the US, Europe, Japan, and greater Asia. The project will also include evaluation and development of carbon capture and sequestration (CCS) facilities. The proposed ammonia production facility would produce hydrogen and convert it into clean ammonia for transport to markets abroad with a target of achieving first commercial deliveries by the end of the decade. Steven O’Rourke, CEO of JERA Americas says: ‘We are very pleased to announce this contracting progress with Uniper SE as a core customer for our low-carbon hydrogen/ammonia project…We continue to see strong demand for ammonia as a hydrogen carrier from a wide variety of users in Europe and Asia.’ ‘Projects like this are critical when it comes to moving responsibly toward lower emission gases while ensuring security of supply for our customers… This project offers real opportunities in that regard, and we are pleased to be associated with it,’ adds Carsten Poppinga, CCO for Uniper.

PAGE 14

USA

OCI GLOBAL AND NEW FORTRESS ENERGY PARTNER FOR GREEN AMMONIA

VOPAK AND NESTE ADVANCE ENERGY TRANSITION IN CALIFORNIA

Producer of ammonia and methanol, OCI Global, has announced an agreement to offtake green hydrogen from New Fortress Energy ZeroParks beginning in 2025.

Vopak has spent €30 million in repurposing 22 tanks at its Los Angeles, California, terminal to establish a capacity of 148,000 m³ (39 million gallons).

The agreement will allow OCI Global to significantly scale up green ammonia production to approximately 160,000 tons per year in Beaumont, Texas.

The repurposing of the tanks allows a move away from traditional products to future fuels like sustainable aviation fuel (SAF) and renewable diesel.

This agreement follows a 100-megawatt electrolyzer system order from Electric Hydrogen Co (EH2) previously announced by New Fortress Energy.

Vopak Los Angeles has a long-term agreement for this storage infrastructure with Neste, a leading producer of SAF, renewable diesel, and renewable feedstock solutions for various polymers and chemicals industry uses. This has extended Neste’s capability to supply renewable fuels to customers on the US west coast. ‘Neste is fully committed to supporting the energy transition in the US as well as globally via working closely together with partners to increase the availability of our renewable fuels. Our cooperation with Vopak shows how repurposing existing fuel distribution infrastructure can accelerate the muchneeded transition to renewable energy,’ says Annika Tibbe, acting president for Neste US.

The green hydrogen will be produced by ZeroParks, NFE’s hydrogen business, using proton exchange membrane (PEM) technology and delivered to OCI’s facilities in Beaumont, Texas where it will then be converted into green ammonia. Nassef Sawiris, executive chair at OCI Global says: ‘Ammonia and methanol are the logical hydrogen carriers to drive this transition and the coming demand from the transportation sector provides the foundation for our scale-up in production and new technologies. NFE is an established energy player and developer and we are excited to start this partnership with them at our Beaumont complex.’ ‘OCI is already at the forefront of decarbonisation efforts in the international arena which made them a clear and solid choice as a partner,’ adds Wes Edens, chairman and CEO at New Fortress Energy. The project will come online in two phases; the first phase in 2025, allowing OCI to produce approximately 80,000 tons per year of green ammonia and the second, in 2026, doubling OCI’s production capacity to 160,000 tons per year.

‘California has been at the forefront of adopting and endorsing climate-friendly policies and solutions. We are glad to enable more cities, businesses and individual travellers in the state to take advantage of Neste’s renewable solutions to reduce their emissions and help fight against climate change,’ she adds. Maria Ciliberti, Vopak president United States and Canada, says: ‘We are proud to serve Neste! Repurposing Vopak’s assets from oil and traditional fossil fuel products to low carbon energy solutions is right on target with our strategy. We are happy that our services and infrastructure have been selected and are committed to be a part of the Los Angeles energy transition.’

TERMINALNEWS NEWSUPDATE AFRICA &CARBON THE MIDDLE CAPTURE EAST

USA

CARBONVERT AND CASTEX JOIN FOR CARBON STORAGE CCUS project development and finance company, Carbonvert and operators, mineral buyers, and landowner, Castex Energy (through subsidiary Castex Carbon Solutions) have announced the execution of an operating agreement with the state of Louisiana to develop a 24,000 acres (97 million m2) of land situated in state waters, offshore Cameron Parish, to permanently store CO2 . Carbonvert CEO, Alex Tiller, says: ‘We firmly believe our Cameron Parish offshore project will help shape Louisiana’s low carbon future.’ ‘Castex and Carbonvert look forward to developing the first offshore CO2 storage hub in Louisiana. Our Cameron Parish project combines premier geologic storage attributes with existing midstream infrastructure to provide a range of tailored solutions to the adjacent industrial corridors in need of economically viable CO2 storage,’ adds Castex EVP and CFO Aaron Killian.

Specialist Training for the Storage Tank Industry Classroom,live online,blended, in-house,and e-learning

. Gain or renew up to 5-year Certificates of Competence* . Courses based on EEMUA 159 . English, Dutch, German and French language options . Courses throughout each year:

Above ground flat bottomed storage tanks

TankAssessor courses* 6-9 November 2023 – in German – live online 13-16 November 2023 – in English – near Manchester, UK 26-29 February 2024 – in Dutch – live online 18-21 March 2024 – in French – classroom – Près de Lyon, FR

A guide to inspection, maintenance and repair Publication 159 Edition 5

TankInspector courses* USA

EXXONMOBIL AND NUCOR ANNOUNCE CCUS AGREEMENT

19-21 February 2024 – in English – live online 4-6 March 2024 – in Dutch – live online

TankBasics courses

ExxonMobil Low Carbon Solutions’ has announced an new carbon capture and storage agreement with steel producers, Nucor Corporation.

5 February - 15 March 2024 – in English – blended learning (live online, e-learning, and more)

ExxonMobil will capture, transport and store up to 800,000 metric tons per year of CO2 from Nucor’s manufacturing site in Convent, Louisiana.

Storage Tanks e-learning

Dan Ammann, president of ExxonMobil Low Carbon Solution says: ‘Our agreement with Nucor is the latest example of how we’re delivering on our mission to help accelerate the world’s path to net zero and build a compelling new business. Momentum is building as customers recognize our ability to solve emission challenges at scale.’ This is the third carbon capture agreement from ExxonMobil in the past seven months, following previous ones with industrial gas company Linde and CF Industries, maker of agricultural fertiliser.

On-demand – in English or in Dutch

In-house courses* By arrangement – to best match your time, location, language

Also... *** Storage Tanks Seminar *** 30 November 2023 – Rotterdam, NL * Current research * Robotic Tank Cleaning * Statistical analysis for tank floor inspection * Mothballing * Professional networking * More More choices, information and registration at www.eemua.org

PAGE 15

NEWS UPDATE TECHNICAL

Voliro

VOLIRO TEAMS UP WITH MFE INSPECTION SOLUTIONS MFE Inspection Solutions, a leading provider of advanced inspection technology, has announced a new partnership with Voliro. The advanced Voliro T drone combines omnidirectional capabilities with the ability to exert significant force and torque to structures, opening up new dimensions of maneuverability in any orientation, height, or location. The Voliro T drone uses thrustvectoring and 6DoF control for peak reliability and stability. Equipped with semi-autonomous flight modes and sophisticated pilot assistance, the Voliro T ensures safe and effortless navigation even in environments where GPS is unavailable, making it ideal for close proximity structural inspections. With its modular payload system, the Voliro T is equipped with multiple integrated sensors for diverse inspection needs and is open for custom third-party payloads. Florian Gutzwiller, CEO at Voliro, adds: ‘Due to the unprecedented appetite for

innovation, the US market is critical for scaling our business. With their extensive knowhow and customer network in the inspection space, MFE is the ideal partner for us to efficiently expand our customer base in North America.’

Sherwin-Williams

SHERWIN WILLIAMS ANNOUNCE NEW HEATFLEX CUI COATINGS Sherwin-Williams Protective and Marine has announced its new line of Heat-Flex CUI-mitigation coatings to help mitigate the dangerous condition of corrosion under insulation (CUI). The line includes Heat-Flex ACE (advanced CUI epoxy), which is an ultra-high-solids epoxy novolac developed with a functional chemical enhancement for CUI mitigation. In addition, three coatings featuring a high concentration of micaceous iron oxide (MIO) pigment round out the lineup, including Heat-Flex 750, Heat-Flex 1200 Plus and Heat-Flex 650. Mark Rubio, energy business manager at Sherwin-Williams says: ‘The battle against CUI is never-ending, as coated

steel encapsulated in insulation will inevitably corrode over time. Our goal is to mitigate that corrosion process for as long as possible, and we’ve developed some high-performance coatings that enable just that. For example, Heat-Flex ACE is the best product we’ve tested for long-term CUI mitigation. We anticipate it becoming a preferred specification solution as the industry gains experience with this enhanced CUI-mitigation system. We have also boosted the market’s CUI-mitigation capabilities for existing specifications with the three MIOenhanced Heat-Flex coatings.’

Alternative Environmental Technologies

ALTERNATIVE ENVIRONMENTAL TECHNOLOGIES REACHES MILESTONE Alternative Environmental Technologies (AET) has announced that its design, procurement, assembly, and installation work of the initial SULFEX commercialization project is near 70% completion. The process is being installed at a liquid fuels pipeline terminal on the United

Your local US Manufacturer for pumping complex fluids Empty your tanks faster and efficiently with a Positive Displacement Pump Netszch Exchange centrifugal pump technology to positive displacement technology to realize: Tank emptying with reduced dead volumes Higher suction capability and dry run Pump multiple products with a wide range of viscosities with only one pump From light fuels to heavy crude, asphalt, bunker n.6, molasses, palm oil and more. Contact us, we will find the optimal solution for your application.

Partnership does not end with the purchase We support you from commissioning, maintenance, repair and to modernization of your pump.

NETZSCH Pumps USA Exton, PA, Tel: 610-363-8010  Houston, TX, Tel: 346-445-2400 npa@netzsch.com  www.pumps-systems.netzsch.com

Tank Storage 175x120 print quarter page.indd 1

PAGE 16

10/9/2023 1:58:31 PM

TERMINAL NEWSNEWS AFRICAUPDATE & THE MIDDLE TECHNICAL EAST States’ east coast. Site work is planned to begin shortly. The 1,000 barrel per day (bpd) diesel desulfurization plant design is on-schedule and expecting commissioning and startup to occur during 1Q 2024. Soon after startup, the plan is to expand capacity to 5,000 bpd at that site, then implement the process at several more terminals across the USA. Barry Dallum, AET’s vice president of business development says: ‘The SULFEX process shows how removing complexity, along while significantly reducing safety hazards, as well as health and environmental hazards, can greatly reduce costs and project cycle times in accordance with LEAN design principles. Typically, a diesel fuel sulfur reduction project would take around twice as long than the speed at which this SULFEX design and installation process is occurring. We are thrilled with the initial results and look forward to numerous follow-on opportunities in the next several quarters.’

Emerson

EMERSON ANNOUNCES DIGITAL VALVE CONTROLLER Emerson has announced the Fisher FIELDVUE DVC7K Digital Valve Controller, a new design improving upon 30 years of field-proven innovation. The DVC7K features Advice at the DeviceTM technology with embedded computing and analytics that convert raw data into actionable information locally with Bluetooth capability, within the device. This means maintenance personnel can receive the data via their phone, tablet or computer wirelessly without having to be in a control room at the plant location. The new valve controller technology improves the performance, reliability and uptime of both on-off and control valves – and by extension an entire process plant or facility – in a wide variety of process industry applications, and provides the information required to create streamlined work processes.

EEMUA Training for Mechanical Integrity with reality built in…

Developed and verified ‘for industry, by industry’, all of the EEMUA 231 Mechanical Integrity courses come with reality built in – for industrial engineers at every career stage. • For hands-on work and management of primary containment – to prevent the loss of hazardous substances. • Satisfy industry requirements at each competency level – Practitioner, Basic application, and Awareness. • Certificated up to 5 years – by examination. • CPD-approved courses. • Flexible delivery to suit learners and companies – Blended, Live online, Classroom, E-learning, and In-house • Free or discounted to EEMUA Members – available to all • Select from courses throughout each year, including: Mechanical Integrity Practitioner Certificate – MIPC® – blended online learning for on-site application of EEMUA 177, 231 and 232 guidance, and the PSSR ACOP – certificated for 5 years via exam and portfolio assessment – course adapted to the engineering needs of each learner and their site/s through a 2-hour induction, to fit diaries now – Next course from 23 October 2023 and runs for 27 weeks, 4 hours per week.

EEMUA 231 Mechanical Integrity Basics – certificated via exam – blended online learning – Basic Application competency level – 4 hours of learning per week for 3 weeks – Next course starts 26 February 2024.

EEMUA 231 Mechanical Integrity e-learning – at the Awareness level – immediately available on-demand with Continuing Professional Development approval.

EEMUA 231 Mechanical Integrity In-house training – courses run over 1 day or 2 half-days – set at the Awareness level – by arrangement to best fit your choice of time, location, and method of learning – certificated with Continuing Professional Development approval. online-learning@eemua.org +44 (0) 20 7488 0801 www.eemua.org

PAGE 17

TANK TERMINAL UPDATE

TANK TERMINAL UPDATE USA

USA

GIBSON ENERGY

HOWARD ENERGY PARTNERS

GRAND ISLE LNG

Cost: $1.1 billion

Cost: $251 million

Capacity: 155,000 m3 storage

Construction/expansion/acquisition: Canadian-based liquids infrastructure company, Gibson Energy has announced it has entered into an agreement to acquire 100% of the membership interests of South Texas Gateway Terminal, USA.

Construction/expansion/acquisition: Kinder Morgan Tejas Pipeline (Tejas), a subsidiary of Kinder Morgan and Howard Energy Partners (HEP), through the joint venture Dos Caminos (Dos Caminos), has announced the receipt of the necessary binding commercial agreements to expand its respective Eagle Ford natural gas transportation systems.

Construction/expansion/acquisition: Grand Isle LNG in Louisiana, USA, has announced the proposal of a LNG export facility. The new facility promises to deliver a cleaner environment and competitively priced US LNG, as well as significant economic benefits to the region.

Comment: Steve Spaulding, president and CEO says: ‘I am excited to add the world-class South Texas Gateway Terminal to our infrastructure portfolio. This transaction amplifies our highquality infrastructure revenues and bolsters the continued growth of our distributable cash flow per share.’

USA

EXXONMOBIL

Comment: ‘We are excited to have begun construction on our Spears expansion project,’ says Mike Howard, CEO of HEP. ‘We have a long history of helping producers in Webb County and surrounding areas find access to premier natural gas markets. We believe this expansion, in conjunction with Kinder Morgan’s expansion, will be an important next chapter in that history.’

Comment: Darren Woods, Chairman and CEO, says: ‘Acquiring Denbury reflects our determination to profitably grow our Low Carbon Solutions business by serving a range of hard-to-decarbonise industries with a comprehensive carbon capture and sequestration offering.’

USA

MITSUI & CO Capacity: 146 million tons Construction/expansion/acquisition: Mitsui & Co has acquired a 33.3% stake in US renewable natural gas production and sales company, Terreva Renewables. Comment: Terreva currently processes methane gas generated in landfills at five locations in North America, in order to produce and sell RNG. Moving forward, Terreva aims to increase its RNG production capacity by pursuing development opportunities for new production plants. As a strategic investor in Terreva, Mitsui seeks to contribute toward realising Terreva’s growth strategy through expansion of its customer base and other initiatives. PAGE 18

USA

KINDER MORGAN

Capacity: 925 miles of CO 2 pipelines Construction/expansion/acquisition: Exxon Mobil has announced it has entered into an agreement to acquire developer of carbon capture, utilisation and storage (CCS) solutions and enhanced oil recovery, Denbury.

Comment: Grand Isle LNG CEO, Robert Shivers says: ‘Significant benefits of the proposed natural gas processing and LNG export facility are that it will provide affordable, clean energy, and generate long-term, good paying jobs throughout the Gulf South and beyond for years to come.’

Canada

WORLD ENERGY Cost: $12 billion Construction/expansion/acquisition: Topsoe, has signed an agreement with World Energy GH2 to provide Topsoe’s ammonia loop technology for Canada’s largest, renewable hydrogen projects – Project Nujio’qonik. Comment: World Energy GH2 will supply 250,000 metric tons of renewable hydrogen per year to global markets at the completion of its renewable hydrogen project. The project will use wind energy power for production on the site, which is expected to begin producing hydrogen in 2025. Energy GH2 to deliver on its targets for production in 2025,’ adds Henrik Rasmussen, managing director, the Americas at Topsoe.

Construction/expansion/acquisition: Kinder Morgan has announced its plan to expand the working gas storage capacity at its Markham storage facility in Matagorda County along the Texas Gulf Coast. Comment: KMI natural gas midstream president Tom Dender says: ‘We are pleased to increase our natural gas storage solutions to further support Texas customers…Storage capabilities on highly utilised assets are critical to support Texas’ ability to respond to an energy crisis and ensure energy reliability as renewables become a greater portion of the state’s energy mix. This expansion will provide much needed capacity that could supply gasfired electric generation facilities within ERCOT and provide electric service to well in excess of one million homes in Texas.’

Save the date. 12 & 13 March 2024

INCIDENT REPORT

INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 23 August 2023 USA Chemical leak at Ultium Cells Ultium Cells, an Ohio battery plant jointly owned by General Motors and South Korea’s LG Energy Solution, discovered cathode mixing slurry leak. The facility took immediate steps to isolate the cause and contain it. Ultium said none of its employees were present in the area and there has been no employee exposure or injuries. OSHA is investigating the leak, the company’s actions and whether employees were at risk. After the leak’s discovery, the immediate surrounding area was cleared, and area mixing operations were temporarily halted while Ultium assessed and addressed the situation. Operations have been fully restored after it was deemed safe.

25 August 2023

26 August 2023

7 July 2023

USA

Gulf of Mexico

Marathon Petroleum refinery fire in Louisiana

Hurricane Idalia impacts Florida’s Gulf coast

Fire at Pemex offshore platform

On the morning of Friday 25 August, a fire broke out at a Marathon Petroleum facility in Louisiana.

In preparation for Hurricane Idalia’s landfall on 30 August, many tank and terminal owners paused operations and evacuated facilities.

A fire broke out on 7 July at the state-owned oil company Petróleos Mexicanos (Pemex) Nohoch Alfa offshore platform at the Bay of Campeche, in the Gulf of Mexico.

A spokesperson from the company has said that the tank itself was not on fire, adding the fire was around the perimeter of a tank. The tank contained naphtha, which was pooling around the perimeter of the tank causing a fire to break out. A mandatory evacuation order put in place on the Friday morning within a 2-mile radius around the facility and was lifted in the afternoon. An investigation is taking place to determine the cause of the naphtha pooling.

PAGE 20

Chevron evacuated non-essential workers from its Blind Faith and Petronius platforms in the Gulf of Mexico, as wella as all staff at the Genesis platform. Kinder Morgan shut its Port Manatee, Sutton and Tampaplex terminals, its Tampa refined products terminal and its Central Florida Pipeline System. 10 people were killed in the storm, and most terminals reported minimal damage to facilities.

Out of the 328 workers on site, 321 were evacuated with the support of seven boats. It has been reported that five people were injured, with two being critical, two fatalities and one person missing. Octavio Romero Oropeza, CEO at Pemex says: ‘The incident will affect several thousand barrels of crude oil equivalent, that is, oil and gas, so Pemex will seek to quickly return to production with defined strategies.’

JOIN OUR COMMUNITY Unlock exclusive content with a Tank Storage Elite membership

5 print & digital magazines

Independent Tank Storage Wall Map

Exclusive articles, interviews & analysis

Priority access to the StocExpo FETSA conference (worth €625)

Live & on-demand webinars

And more!

Scan the QR code to become a member.

Elite membership just €299 for 12 months.

JOIN NOW membership@tankstorage.com

Established 2005.Trusted. Valued. Influential.

PROFILE TIW STEEL PLATEWORK

BEST PRODUCT, BEST PRACTICES TIW Steel Platework’s general manager, Daniel Wigmore, speaks to Tank Storage Magazine about the company’s long industry experience and projects 01

TIW STEEL PLATEWORK was founded in 1907 under the name Toronto Iron Works. Its history is tied with the pioneering of Canada’s petroleum industry. The company was originally founded along Toronto’s waterfront by Albert Leroy Ellsworth, who also owned British American Oil Company at the time. Originally, its sole purposes was to supply British American with oil tanks and other process equipment for its refineries. ‘This changed in 1983 when TIW was purchased by Canadian Erectors who took the company from a small regional supplier to having a national presence,’ says Daniel Wigmore, general manager, at TIW Steel Platework . Today, TIW Steel Platework specializes in carbon and stainless steel tanks and API tanks as well as boilers, pressure vessels and shutdown work. ‘But, our bread and butter is the very large tanks on that scale that nobody else is capable of doing,’ says Wigmore. The company’s specialty is large steel plate projects including API 650, 620 PAGE 22

storage tanks and API 653 tank repairs for existing facilities. TIW Steel Platework holds many certifications including; ASME: A, S, U, U2 and PP certificates; National Board NB and R stamps; CWB W47.1-Division 2, registered with TSSA in Ontario, ABSA in Alberta and TSASK in Saskatchewan. SAFETY IN PRACTICE ‘Safety isn’t just a priority. It’s the number one priority for us. If something’s not done right, I don’t want to do it. I don’t want to do anything that puts someone at risk of being injured or anything else,’ says Wigmore. Safety is the company’s first and most important core value, and it is built into everything it does. TIW has a dedicated HSE manager with 40 years of experience in the oil and gas industry. Its site safety advisors are CSO-certified and have an in-depth knowledge in tank and vessel construction and repair. TIW has strict procedures in place to ensure the safest working environment possible. Wigmore explains: ‘We start at

the top and work our way down. We will not mobilize to site until we’ve done a full JSA (job safety analysis) and walkthrough of the site. Then when we get to the field we have daily toolbox talks, weekly safety meetings, and monthly safety meetings.’ At TIW, every worker has the right to stop work and to question it if they believe it’s not safe, and that attitude is encouraged in the field and in the office. PLANNING & PROJECTS For each project, there is a team of office staff to support the customer and field staff throughout the entire process. This team can quickly pivot and adapt different processes for different clients. From the receipt of an RFQ to the winning and implementation of a contract, the global landscape and technological advances all have led to a business environment that is both unpredictable and demanding. One customer approached TIW with a project for 19 large-diameter, open top

PROFILE TIW STEEL PLATEWORK tenure employees “how do we do this?” Or “how has this been done in the past? How will we overcome this problem?”,’ explains Wigmore. Having those people in house that have experience solving problems means the company can solve complex problems and move forward and get to where it wants to be.

‘Regardless of whether a project is a new build or maintenance work, managing it from start to finish requires a lot of team work and commitment from both the field staff and the office staff. TIW is prepared and ready to take on your next project, no matter how big. Our projects are delivered on time, on budget, safely with no defects,’ says Wigmore. For more information: www.tiwsteelplatework.ca

floating roof tanks. They ranged in size from 192 ft to 250 ft diameter with steel pontoon floating decks. The project took 20 months from start to finish. ‘We worked with them through the process, from the engineering and the drafting, to the full manufacturing and field erection of all 19 tanks,’ says Wigmore. Another project in South Edmonton saw TIW complete five 273 ft-diameter open top floating roof tanks with steel pontoon decks. Wigmore says: ‘In the winter months after completion, we hydro-tested the tank. We had to heat and circulate the lines in order to make sure that there was no freezing due to the -45 °C (-49°F) weather.’

Another reason TIW can execute large scale projects like this is due to its employees the experience and longevity in the industry. ‘Janet Coles our purchasing manager has been here for 34 years. I will often say to her or other long

01 Roof structure of largest stainless steel tank in North America 02 137 ft diameter x 78 ft ammonia tank 03 Methane sphere rehabilitation

TIW has a dedicated team for turnaround planning, and an expert project management team with experience in tank builds, tank repairs, and boiler work. ‘One of our biggest achievements was building the largest stainless steel tank in North America. It was 150 ft diameter by 39 ft high,’ boast Wigmore. TIW Steel Platework has completed all sorts of projects; from ethanol fermenters, spheres, low temperature hydrogenous and hydrogenous ammonia storage tanks, as well as many different alloy tanks. ‘I took part in a job for a 137 ft-wide by 70 ft-high, low temperature anhydrous ammonia storage tank, It was a double wall, dome roof storage tank,’ explains Wigmore. COMMITMENT TO QUALITY ‘TIW has an extensive network of suppliers which allow us to maintain delivery times and we have a 20 year strong relationship with a North American steel mill which allows us to obtain material quicker than our competitors,’ explains Wigmore. PAGE 23

PROFILE STOLTHAVEN NEW ORLEANS

LEADING IN RENEWABLE DIESEL AND SUSTAINABLE AVIATION FUEL Daniel Strydom and Henrik Olsson from Stolthaven New Orleans discuss trends in the storage of renewable diesel and sustainable aviation fuel AS COMPANIES pivot to greener operations, there is an ever-increasing demand for feedstocks. An increasing number of refineries in Louisiana are moving into the production of renewable diesel – typically requiring products like tallows, fats and used cooking oil (UCO).

A lot of feedstocks can be acidic and have a high viscosity, which means they must be stored in stainless steel or in carbon steel coated tanks with a liner. ‘These products also have specific heating requirements,’ comments Henrik Olsson, commercial and business development manager, Stolthaven Terminals, North America. Stolthaven New Orleans has a lot of experience storing and handling feedstocks and it has optimally sized tanks with the required heating capabilities, insulation and lining. Modifying a standard carbon steel tank to meet these requirements can be very expensive; and would normally be passed on to the customer. ‘Stolthaven New Orleans already has the required assets – with the capability to maintain and insulate the products at the correct temperatures – so that’s a big advantage,’ says Daniel Strydom, general manager, Stolthaven Terminals North America. Stolthaven New Orleans also has many smaller-size tanks in the 2,000-5,000 m³ range. This is important because feedstocks for renewables come in parcel sizes of 1,000-2,000 metric tons – which are much smaller than for most other products – and they need to be kept in PAGE 24

market. In response to – or preparation for – that, Stolthaven New Orleans is looking to expand in the US Gulf, so it can continue to meet its customers’ growing needs for specialist storage and handling services.

The facility also handles the finished bio-products, which can be stored in its larger, general-purpose tanks and moved in larger parcels and don’t require special treatment. ‘We’re delighted to be able to support customers in this burgeoning product category and support the transition to greener energy and fuel alternatives,’ says Olsson. ‘It aligns with our own sustainability ambitions to reduce our environmental footprint, reduce waste and energy usage and minimize environmental harm.’

The planned expansion involves increasingly automated operations, additional specialist services for customers and the installation of new tanks, which will significantly increase Stolthaven Terminals’ current total US storage capacity of 954,491 m³.

While there are tremendous growth opportunities which Stolthaven New Orleans is keen to explore, the company remains committed to meeting the needs of its ‘traditional’ customers in the bulk liquid petrochemical industry. As such, Stolthaven New Orleans continues to invest in state-of-the-art storage and handling services for these products. The company also has a site in Houston, one of the largest terminals in its network, with a current capacity of more than 570,000 m3. THE FUTURE FOR RENEWABLE DIESEL

Stolthaven New Orleans also sees the potential for local aggregation services for feedstocks. The traditional sources for importing feedstocks for renewable diesel have been in Asia and they have always been aggregated at source. Now, as the demand increases and there’s a more limited supply from Asia, Stolthaven New Orleans sees that players in this field in the US are looking for alternative sources. These new sources are likely to be quite disparate so there often won’t be enough to aggregate at source; it will be a case of importing in ISO tanks and aggregating in the US. ‘This would require quite complex logistics and sophisticated infrastructure and Stolthaven Terminals can play a critical role here, with its existing infrastructure and further supported by its planned expansion of assets and services in the US,’ comments Strydom.

RENEWABLE DIESEL LOGISTICS

separate streams (tallows, fats, UCO, etc). The facility’s assets are ready-made to meet these specific requirements; and Stolthaven New Orleans is witnessing an increase in demand for them.

Over the next 10 years or so, there will be an increase in demand for bulk liquid storage in the US Gulf, supported by increased imports and exports, that will be driven by both the petrochemical sector and the rapidly growing renewable fuels

For more information:

They need storage and logistical support, which Stolthaven New Orleans is able to provide. Its assets are a perfect match for storing feedstocks, which often require special treatment. The facility is the closest public terminal to the mouth of the Mississippi River, with excellent shipping, rail and road connections, so Stolthaven New Orleans can handle the onward transportation of these products to support efficient distribution locally and across the US.

www.stolthaventerminals.com

F TH BR E EA FU KB TU U RE LK

TW A N ER T W P X L R TE IS G RE OW N A

2 20 R E RP BETW E M AN V | O O N XP 0 PE - 3 ER 28 NTW

Host sponsor

WOMEN IN TANKS SARIYYA HEYDAROVA

OPPORTUNITIES IN OFFSHORE Well completion and intervention engineer, Sariyya Heydarova tells Molly Cooper about her connection to the industry SARIYYA HEYDAROVA’S journey into the oil and gas industry differs from the usual path. Unlike many, she found herself having a strong connection with the industry from a young age, due to her passion for Azerbaijan’s rich oil and gas heritage. ‘Growing up amidst the history and landscapes of Azerbaijan, I found a profound connection to an industry that shaped my nation’s identity. It’s not just a career; it’s a way of preserving our legacy, fostering innovation, and contributing to the continued growth of our homeland,’ explains Heydarova. Now, in her role as a well completion and intervention engineer at BP, Heydarova spends her days planning intervention operations and providing offshore support for the execution. ‘The role requires lots of multidisciplinary interaction, as well as communication with numerous vendors.’ SUPPORTIVE WORK ENVIROMENT As a woman in the industry, Heydarova finds herself fortunate enough to not have personally experienced discrimination or differential treatment. ‘While it is widely acknowledged that working in a predominantly male-dominated field can pose challenges, my experience has been overwhelmingly positive, thanks to the support and respect shown to me by my male colleagues,’ explains Heydarova. In the USA, where Heydarova currently works, she notices that women are treated similarly to their male counterparts in the workplace, in comparison to other countries. In turn, this helps to create a more inclusive and supportive work environment overall. Attitudes towards women in the oil and gas industry are undoubtedly changing. The industry has been evolving from a traditionally male-dominated sector to one that embraces diversity and inclusivity. As a result, women are feeling more heard, valued, and comfortable in their roles, which has opened up opportunities for them to thrive and take on leadership positions. Heydarova says: ‘This positive shift is evident in various ways, such as the provision of dedicated facilities and changing rooms for women on platforms, reflecting a

PAGE 26

commitment to creating a more equitable work environment. It’s also becoming increasingly common to see female professionals on offshore platforms, highlighting the industry’s progress in promoting gender diversity.’ REWARDING EXPERIENCES Heydarova stays inspired in her work by understanding that every action she takes within her role plays a part in

the global delivery of energy. Working in offshore facilities is not a role for everybody; especially with the commute. ‘Not many have the opportunity to work in offshore facilities where the commute involves a helicopter transfer and waking up in the middle of the vast, open sea, with no land in sight,’ says Heydarova. For her, it’s the thrill of designing and overseeing operations in such challenging environments, where risks are inherent, that motivate her most at work.

WOMEN IN TANKS SARIYYA HEYDAROVA

WOMEN IN THE WORKFORCE Heydarova believes women in maledominated workforces need to be focusing on self-confidence and selfassertiveness to gain respect. ‘Women who are confident in their skills and abilities and don’t hesitate to speak up and take on leadership roles will be respected by male colleagues,’ she explains. Moreover, it is crucial to stay committed to learning and professional development. The more expertise that women can bring to the table, the more respected they will be. ‘Women should not hesitate to make their contributions visible and their achievements known to leadership. It is vital they know that women have a place in the industry,’ says Heydarova. To retain women in the offshore workforce, it’s crucial to address the challenges they face, including inadequate facilities and the need for respect and support from male colleagues. Heydarova believes the contribution of women is changing the culture and mindset of the sector, making it more welcoming for future generations.‘The industry has a profound impact on the world’s energy landscape; it is important that women have a direct hand in addressing global energy needs and sustainability, and they can do that by working in these fields,’ explains Heydarova. ‘First of all, the company should ensure equal opportunities for career advancement and leadership roles by creating a transparent and fair promotion process that rewards skills and qualifications, not gender,’ she explains. Heydarova suggests that the establishment of mentorship programs and support networks for women in the industry where mentors can offer guidance to female employees and a sense of belonging can be invaluable. To help women balance offshore work with personal and family responsibilities, a company could offer flexible work arrangements such as remote options where feasible. Providing resources and support for managing family

‘Women should not hesitate to make their contributions visible and their achievements known to leadership.’ commitments while working offshore. This can include assistance with childcare arrangements and access to family counseling services. Despite the challenges of working in a male-dominated field, Heydarova would recommend the industry to other women.‘The experience can be incredibly rewarding and personally transformative. The industry offers tons of opportunities for professional growth and advancement. It also encourages women to push the boundaries and break stereotypes, which can accelerate career progression,’ she says. THINKING AHEAD Heydarova predicts the oil and gas industry will undergo significant transformation in the next 20 years, resulting in a greater emphasis on sustainability, renewable energy integration, and reduced carbon emissions. This will be reflective of the current global efforts to combat climate change. ‘The future of engineering careers in the oil and gas industry will evolve toward a more technology-driven and sustainable landscape. Engineers will be more focused on developing innovative solutions for cleaner energy production, enhanced automation, and improved environmental practices,’ she explains. It will become key for an engineer working in the oil and gas industry to have a more diverse skillset. They will need to better fit the industry’s needs and remain a valuable asset while the transformation is ongoing. For this reason, Heydarova studied a master’s degree last year in

sustainable energy and environmental management. This ensures she’s ready for the future of the industry. From this, she has taken a role as a sustainability founder for the Sustainable Azerbaijan Community. ‘Through this initiative, I’m working to foster a sustainable mindset in Azerbaijan, advocating for environmentally responsible practices and promoting awareness about sustainability issues,’ she explains. PASSION & DEDICATION In her current career as a well completion and intervention engineer, Heydarova recalls her proudest moment. ‘Delivering my first well was a defining moment where I understood the tiniest, but tangible impact, I had on the world’s energy supply and, more importantly, on my country’s economy,’ she explains. Heydarova felt this to be a truly rewarding experience, seeing the direct results of her work in front of her. This reinforced her sense of purpose in the industry and motivated her to continue making a positive impact on the global energy landscape. But in today’s unpredictable times, Heydarova finds it challenging to settle on a long-term goal in her career. ‘My goal is to shine brightly in my chosen field and approach my work with unwavering passion and dedication, whether the path leads to new challenges or opportunities, I aim to make a meaningful and positive impact on the world around me.’ For more information: Follow Sariyya Heydarova on LinkedIn where she shares her thoughts on industry, education and sustainability. www.bp.com

01 Sariyya Heydarova working offshore

PAGE 27

PROFILE VALLEYTANK

VALLEYTANK CELEBRATES 50TH YEAR WITH SAFETY AND ECO-UPGRADES Tank Storage Magazine speaks with John Hoblyn, director at Valleytank, about celebrating expansion alongside a momentous anniversary 50TH ANNIVERSARY celebrations finally took place for Valleytank, following postponement due to the pandemic. Founded in 1970, Valleytank now boasts 50 years of expertise and operations in the industry. Over the past five years, Valleytank has invested $9 million to upgrade the terminal. This significant investment emphasises the facility’s prioritisation of employee safety, protection of the environment and a firstclass service to its customers. THE EVOLUTION OF VALLEYTANK 50 years ago, Norwegian shipowner Odfjell was using small chemical parcel tankers to move products to and from Montreal, Canada, and Great Lakes. Before building Valleytank, its ships were spending several days on the way in and out discharging direct to truck. Given that shipowners only make money when ships are at sea, this situation was not ideal. With the new terminal, stops in Montreal are reduced from days to a few hours. The new terminal was designed by a British engineer who brought with him the dock line system, where the stainlesssteel piggable lines run right through the terminal with short links to all tanks. Valleytank was the first tenant of the Port of Valleyfield and had 17 tanks with a total capacity of 17,000 m³ and tank sizes ranging from 320 m³ to 2,800 m³. Located in the Port of Valleyfield on the St. Lawrence Seaway, there is a 180 m tanker berth with a maximum draft of 7.9 m. The terminal can accommodate 25 rail tank cars and is connected to CN, CP, CSXT and Norfolk Southern, and is adjacent to the Montreal ring road, Autoroute 30, with easy access to Autoroutes 20 and 40. Close to the west of Montreal, it is strategically placed to serve customers in the Montreal area together with eastern Canada and the eastern USA. Valleytank recently renewed its lease with the Port for 20 years with options for a further two 10-year periods. Valleytank is now owned by Increase Oil Recovery A/S based in Bergen, Norway.

PAGE 28

‘Tank operators’ priorities must be in order of importance: the safety of personnel, protection of the environment and service to customers.’ EXPANDING FOR INCREASED DEMAND Valleytank’s market has changed significantly over the past 20 years. Primarily a marine terminal, products are now more frequently moved in and out by rail and truck. The demand has changed from the smaller tanks to larger ones resulting in several of the smaller tanks being scrapped to make space for larger tanks. The total capacity is now 46,700 m³ with 27 tanks. John Hoblyn, director at Valleytank, comments: ‘The new and larger tanks are in the 5,000 m³ range. There are two

stainless steel tanks and many tanks are heated and insulated. Having these larger tanks allows for larger quantities of specific products to be moved, such as, styrene monomer, sulfuric acid, caustic soda and diesel exhaust fluid.’ SPENDING APPROPRIATELY Tank operators’ priorities must be in order of importance: the safety of personnel, protection of the environment and service to customers. To this end then, what was the $9 million spent on at Valleytank? ‘The working conditions and safety of all personnel is paramount,’ explains Hoblyn. ‘Canadian winters are cold, but operations must continue, even when the temperature is below -30ºC or there has been a fall of 3 ft of snow.’ Improvements included shelters for operators, changing room renovations, better protective clothing and safety showers. ‘There are now three of these,’ says Hoblyn. ‘Each cost approximately $63,000 and they are all heated in the winter.’

PROFILE VALLEYTANK By prioritising the safety of workers and making their working environment more comfortable, Valleytank has established a better facility to work in, which incorporates a healthier and happier workplace. ‘There is a new snow blower to keep the roads open for trucks and a larger shunter to move rail cars. The old golf carts, enabling operators to move rapidly throughout the terminal, were replaced,’ Hoblyn adds. Protection of the environment is the next priority. There are scheduled inspections of all tanks, with consideration being given not only to the tank shell and roof, but particularly the floors; normally the first part of a tank to need attention. In the past five years, two floors have been replaced and one tank was completely scrapped and replaced. The cost of this work alone was in excess of $1.25 million. To minimize heat losses, pipe and tank insulation need constant maintenance or replacement. It’s the same situation with tank coatings. One tank had to be recoated – a complex and costly process to the tune of $0.25 million – and many others had to be patched. The maintenance of five old tanks, originally purchased second-hand, became uneconomical and they were scrapped. Radar-operated level gauges were installed in several tanks to prevent overfilling. Constant work is being done to the tank dykes to ensure that they are at the correct height to contain a potentially catastrophic spill. REGULATIONS & PROPER HANDLING Every effort is made to ensure compliance with all regulatory standards. Transport Canada make regular visits to the facility and there are frequent audits by insurers.

Customers also carry out audits to make sure that their products are stored and handled correctly. Big chemical companies know that a major incident involving their product would make major headlines, with little mention of Valleytank. Annual environmental surveys are made by an independent contractor using 33 soil-testing wells on site, copies being sent to the port, the bank and any other party that may ask for it. The port provides security outside working hours to prevent intruders and damage to the facilities. Over the past five years there have been some significant investments; the largest being a 5,000 m³ coated and insulated tank that replaced two of the original tanks. The total cost, including insulated pipe connections, valves, and more, was about $3 million. A fully automated truck loading bay, available 24/7, was built outside the terminal gates. Hoblyn

comments: ‘We are very proud of our automated truck loading bay available 24/7, common for terminals handling petroleum products but rarer for terminals handling chemicals.’ In addition, a generator was purchased to provide uninterrupted service during power outages and flow meters were installed to speed up truck and tank car loading. ‘We’re extremely encouraged by the feedback we’ve received from our customers’, says Jamie Johnson, Valleytank’s general manager. ‘Our hard work and financial commitment are paying off. We have confidence in our ability to deliver the levels of service expected by our customers.’ WHAT OF THE FUTURE? The demand for storage space has always been cyclical; periods of lots of empty tanks followed by a full terminal that is turning business away, and this is Valleytank’s current situation. Hoblyn says: ‘It is no longer forced to lower the rates to unprofitable levels to fill tanks and then get stuck with those rates even when conditions improve. It seems likely that industry will continue to need more bulk liquid storage and Valleytank intends to satisfy that demand.’ Studies are being made to plan additional tanks that will be at the far end of the land leased from the port. The other big project being studied is a modification to enable more products to be loaded at the automated truck loading bay. For more information: www.valleytank.ca

PAGE 29

PROFILE FLINT HILLS RESOURCES AUSTIN

GROWTH, COMMUNITY & FUTURE-PROOFING The team at Flint Hills Resources explains how keeping up with demand and community engagement is enhancing its services OVER THE decades, Austin, Texas has witnessed remarkable changes in its fuel terminal landscape. Once home to seven different terminal companies, the passage of 30 years has seen all but one fade into history. As the population of the area has soared, so too has demand for transportation fuels. Flint Hills Resources credits keeping the community at the forefront of its operations in its ability to keep pace with Austin’s growth. Flint Hills Resources’ original single facility has since expanded into four area terminals – including one exclusively for jet fuel. The company estimates that its facilities supply the majority of transportation fuels consumed in the Austin market. Flint Hills Resources is a leading independent refining company with operations in the Midwest and Texas. The company’s Texas business consists of a crude oil gathering system, two refineries in Corpus Christi, a proprietary pipeline and terminal network, and fuels and chemical marketing and trading. Gasoline, diesel, and jet fuel are distributed through its Texas Pipeline system to South Texas, San Antonio, the Austin-area, Waco, and the Dallas-Fort Worth metroplex. ‘Austin is a unique market,’ says Todd Craig, executive vice-president for refined products. ‘Remaining one of very few companies relied on to keep Austin moving requires understanding what is important to people who live here. We know we’ll be held to high standards, but high standards make for better operators.’ GROWTH & BEING GOOD NEIGHBORS Texas Pipeline 1 was constructed in 1989 with four original terminals in San Antonio, Austin, Waco, and Euless, Texas. By 1996, Texas Pipeline 2 expanded capacity from Corpus to Euless and supplied jet fuel to airlines at the Dallas Fort Worth International Airport. Distribution assets stayed close to Interstates 37 and 35 in Central Texas, which has seen unprecedented population growth in recent years. By staying grounded in its vision and values, Flint Hills Resources’ Texas

PAGE 30

business evolved from importing crude oil and sending finished fuels to markets around the country to keeping its feedstock procurement and refined products close to home. In 2010, the refineries ran about 30,000 barrels per day of domestic crude. Today, Flint Hills Resources’ Corpus Christi refineries process approximately 350,000 barrels per day of exclusively produced domestic oil and distributes transportation fuels through 10 proprietary facilities. ‘We are proud to be a refiner of Texasproduced crude oil,’ says Rodney Dillon, vice president and manufacturing manager. ‘One thing that is impressive about Flint Hills Resources Texas operations right now, is that the distance between where the oil comes out of the ground to where the fuel gets consumed is a few hundred miles. That’s a rare feature in global commodities.’ In the early 2000s, as the industry transitioned to Ultra Low Sulfur Diesel, the company stopped shipping jet fuel on both pipelines, and concentrated jet shipments on its line to Dallas-Fort Worth. This allowed for better management of government-required diesel

‘We know we’ll be held to high standards, but high standards make for better operators.’

specifications, protected the quality of the jet fuel, and reduced the amount of product lost to incompatible interface. As a result, jet fuel supply that went to airlines flying out of Austin Bergstrom International Airport shifted to a new jetonly facility, built west of the city in Bastrop County in 2006. An additional truck loading bay was added at the Bastrop terminal in 2022 to support increasing demand from Austin airlines. ‘As Austin has grown, Flint Hills Resources has invested in its pipeline and terminal network to support that growth,’ says Randy Lenz, senior vice president of operations. NEW PROJECTS Community engagement, stakeholder relationships, and working collaboratively with elected officials and regulatory agencies are best practices that the company considers part of its success. According to Craig, ‘We have to be more than a reliable supplier to our customers, we strive to be considered a preferred partner by the whole community.’ Prior to pursuing significant projects, Flint Hills Resources makes sure to consult with community stakeholders to establish continuous feedback loops to make sure it is listening to different community concerns and providing updates as projects progress. In 2010, the company completed a terminal south of Austin in Mustang Ridge, and a fourth facility in Taylor, northeast of

PROFILE FLINT HILLS RESOURCES AUSTIN the city, was commissioned in 2020. The new terminals reduced waiting time, idling time, and distance that fuel trucks had to drive to reach their final destinations.

approaches like these have the potential to further minimize emissions and enhance safety for Flint Hill Resources’ own employees and the people who live and work around its facilities.

EFFICIENCY & SAFETY Flint Hills Resources terminals are designed for maximum efficiency. Every truck loading bay in a terminal is configured identically, which eliminates drivers jockeying for loading positions behind a specific bay if another is available. Product throughput is maximized, and truck wait-times associated with last-mile distribution are reduced. Truck staging is also critical. Flint Hills Resources is sensitive to traffic patterns, and the needs of nearby businesses, neighbors, and first responders to have access to non-congested streets. Terminal footprints are designed – and several have been redesigned as demand has increased – to minimize trucks waiting to load on public roadways. All the terminals operate with the same high standards for health and safety. The Austin, Bastrop, and Mustang Ridge terminals have all earned Star of Excellence recognition through OSHA’s Voluntary Protection Program (VPP). This indicates above industry-average performance for safety and health management, robust prevention and control programs, and comprehensive safety and health training. According to Lenz, the company’s focus on safety and the environment is embedded in its culture. ‘Our stewardship philosophy challenges us to innovatively create value in society while utilizing as few resources as possible,’ he says. ‘We are proud of how we do that in Austin and throughout our entire network.’ THE COMMUNITY MATTERS Flint Hills Resources tries to make a positive difference in the communities it calls home. The company identifies four different stewardship initiatives in its vision: health & safety, people & communities, the environment, and innovation. By contributing time, talent, and funding to a variety of community organizations, Flint Hills Resources strives to be an operator of choice. Across its network, Flint Hills Resources participates in Community Action Councils and routinely collaborates with community stakeholders. In addition, employees participate meaningfully in Local Emergency Planning Committees (LEPCs), engage with city governments at public meetings, and share information with local neighborhood associations and other NGOs about operations, projects, and new initiatives. As such, Flint Hills Resources sees the relationship with

STEM EDUCATION

the community as an integral part of successful operations. Environmentally focused projects include pollinator plantings, strategic maintenance of pipeline rights-of-way, and working with organizations like the Wildlife Habitat Council to validate land management practices. ENVIRONMENTAL CARE Since 2000, the Corpus Christi refineries have reduced their total traditional criteria air emissions by nearly 70%, while increasing production to meet demand. The company has made significant investments in equipment upgrades and process improvements that increase reliability and efficiency. Tools that leverage innovative technology are used to protect people, employees and neighbors, and the environment. Following a multi-year collaboration between Flint Hills Resources, its Molex affiliate, and the US Environmental Protection Agency (EPA), Flint Hills Resources deployed digital sensors at its refineries as a potential alternative to traditional leak detection and repair practices. Method 21 monitoring requirements can be challenging due to their time-based, human-dependent approach, but the new leak detection sensing network resulted in an EPAapproved alternative means of emission limitation (AMEL) to innovate a fixed, continuous detection mechanism. The sensors assess VOCs at the parts-perbillion (ppb) level and utilize wind direction to triangulate the location of incipient leaks. The revolutionary new monitors facilitate early awareness and response to potentially abnormal conditions. They have been installed at Flint Hills Resources’ Austin terminal and are scheduled to be deployed throughout all company terminals by the end of next year. Additional innovations include the application of cameras and OGI imaging combined with AI data analytics to establish baseline operating conditions and monitor for and react to, minuscule changes in equipment or the environment. Next-generation digital

In Corpus Christi, Flint Hills Resources is the sponsor of the Texas State Aquarium’s (TSA) Center for Excellence in STEM Education. Flint Hills Resources has supported the TSA for over thirty years, beginning with its construction in 1990. The aquarium is one of the widestreaching learning facilities in the state and introduces the animals and habitats of the Gulf of Mexico to over 80,000 students annually. Flint Hills Resources supports the TexPrep pre-freshman engineering program which is a Texas state initiative providing educational enrichment opportunities for high-ability middle and high school students interested in pursuing science-based careers. The company also sponsors scholarships targeted at students planning careers in math, science, technology, engineering, or construction. ‘Our Discovery Scholars program awards scholarships to graduating seniors in our Texas operating areas who demonstrate financial need, academic excellence, and leadership capabilities,’ says Andy Saenz, director of public affairs. ‘We are honored to play a small part in helping these students reach their full potential.’ FUTURE PREPARED Flint Hills Resources sets an example in the energy sector by considering the wider picture. Establishing good relationships with the community and prioritizing the environment by identifying and closing gaps through the use of innovative technology and transformative practices positions the company to anticipate and adapt to challenges. By nurturing mutually beneficial relationships with stakeholders, embracing innovation, and building on a history of continual transformation, the company is well positioned today, and is primed for future enhancements. For more information: www.fhr.com

01 Air monitors installed throughout the Austin terminal facilitate early awareness and response to abnormal condition 02 Installed throughout the facility, cameras combine with data analytics to establish baseline operating conditions

PAGE 31

PROFILE LEXICON ENERGY SERVICES

BUILDING TANKS, REPUTATION & RELATIONSHIPS Proud of its long-term partnerships with terminal companies, Lexicon Energy Services shares the secrets to completing successful tank projects

LEXICON ENERGY Services (LES) is proud to have partnered with one of its terminal customers for over 20 years, working closely with the terminal operator on multiple Texas locations. Most recently, a terminal company had undergone a terminal expansion, selecting LES to provide the foundations and piping. Lexicon has completed projects for multiple storage terminal clients in Houston and the surrounding areas. The scope of these have included, but are not limited to, the following: • Site work • Tank foundations • Concrete manifolds • Structural steel pipe racks

stone columns installed and completed in time for the tank erection was a great moment,’ says Crain. MEETING TIGHT DEADLINES A challenge that the team often come up against is constructing tanks to a tight schedule. Operators want to ensure work is carried out to a high standard, but to a timeline that minimizes downtime. ‘To ensure the project was delivered to schedule, we required diligent planning and the utilization of qualified and experienced craftsmen,’ explains Crain. ‘Co-ordinating with multiple clients and completing the projects within budget and schedule is always a highlight.’

• Piping to and from the tank containment

CHOOSING THE RIGHT PARTNER

IMPROVING GROUND CONDITIONS

Lexicon handles crude and chemical storage terminals; refineries; ship and barge loading facilities; gas processing; compressor stations; alternative fuels;

Lexicon Energy Services most recently completed the foundations and piping for four new 140’ diameter tanks for an undisclosed client in North America. ‘The scope of this project included ground improvement, tank ring foundations, asphalt tank pad and piping,’ says John Crain, senior vice president at Lexicon. The work to improve ground conditions included creating and installing stone columns. ‘This was actually one of the biggest challenges,’ says Crain. Lexicon overcame this by subcontracting a qualified contractor to design and install the stone columns. In the end, this challenge also ended up being one of the project highlights. ‘Seeing the

PAGE 32

and more. With its sister companies in steel fabrication and erection, it can be considered a one-stop shop. Crain advises terminal operators to speak to past clients before choosing a partner for these types of services. ‘Visit some of the installations that show the magnitude of our capabilities,’ he adds. For more information: Lexicon has helped fuel the energy sector for more than 25 years. It is the go-to for construction and management services with a specialization in civil, mechanical, piping and structural work. https://lexicon-inc.com

‘Visit installations that show the magnitude of our capabilities.’

The FeTSA Supplier pArTnerShip The FeTSA Supplier pArTnerShip

Why Should i join The FeTSA Supplier pArTnerShip?

We offer you privileged access and visibility to senior decision makers in the tank storage industry through We offer you privileged andinclude: visibility to senior decision makers in the tank storage industry through our events, publications and meetings. Specificaccess benefits

Why Should i join The FeTSA Supplier pArTnerShip? our events, publications and meetings. Specific benefits include:

Why Should i join The Supplier pArTnerShip? We offer you privileged access and visibility to senior makers in theour tank storage industry through Why Should i joindecision The FeTSA FeTSA Supplier pArTnerShip? neTWorking: One complimentary ticket to attend Annual FETSA Conference and neTWorking: One complimentary ticket to attend our Annual FETSA Conference and our events, publications and meetings. Specific benefits include: We offer you privileged access and visibility to senior decision makers in the tank storage industry through WHY SHOULD I JOIN THE FETSA SUPPLIER PARTNERSHIP? exclusively dedicated to FETSA members, conference and highindustry level offerDinner you privileged access and visibility to senior decision makers inspeakers the tank storage through WHO SHOULD JOIN? WeAGM

AGM Dinner exclusively dedicated to FETSA members, conference speakers and high lev our events, publications and meetings. Specific benefits include: events, publications meetings. Specific benefits include: stakeholders from theand EU political environment. First option makers for sponsorship We off er you privileged access and visibility to senior decision in theoption tank opportunities storage industry opportunitie The FETSA Supplier Partnership is our stakeholders from the EU political environment. First for sponsorship open to companies that do business neTWorking: around the Annual Conference andand related events. One complimentary ticket to attend our Annual FETSA Conference and through our events, publications meetings. Specifi c benefi ts include: around the Annual Conference and related events. neTWorking: One complimentary ticket to attend our Annual FETSA Conference and with tank storage companies or have neTWorking: One complimentary ticket to attend our Annual Conference an AGM Dinner exclusively dedicated to FETSA members, conference andFETSA high level AGM Dinner exclusively dedicated to FETSA members, speakers conference speakers and high level an affinity with the tank storage sector. NETWORKING: One complimentary ticket to attend our Annual FETSA Conference AGM Dinner exclusively to FETSA members, conference speakers and high EU political environment. First option for sponsorship opportunities stakeholders from the EUdedicated political environment. First option for sponsorship opportunities This includes, but is not limited to: stakeholders from the and AGM Dinner exclusively dedicated to FETSA members, conference speakers and stakeholders from the EU political environment. First option for sponsorship opportun ViSiBiliTy: Name and logo with summary of services offered will feature on a dedicated around the Annual Conference and related events. ViSiBiliTy: Name and logo with summary of services offered will feature on a dedicated around the Annual Conference and related events. high level stakeholders from the EU political environment. First option for sponsorship Technical equipment providers around thewebsite Annual Conference and related events. Supplier Partnership pageSupplier of our Partnership website and willof beour included inand ourwill communication tools page be included in our communication tools opportunities around the Annual Conference and related events. Companies safety website, suchthe asmonthly the FETSA website, the monthly newsletter and the annual suchproviding as the FETSA newsletter and the annual management reportmanagement report ViSiBiliTy: Name and logo with summary of services offered will feature on a dedicated services which are circulated to senior industry executives. You willoff bearticle entitled to draft an article which are circulated to senior industry executives. You will be entitled to draft an VISIBILITY: Name andof logo summary services will feature on a tools Supplier Partnership page our with website and willof be included communication ViSiBiliTy: Name and logo with summary ofpartnership services offered will feature oninered aour dedicated Fire fighting/protection in a quarterly supplier newsletter. ViSiBiliTy: Name and logo with summary of services offered will feature a dedicated in a quarterly supplier partnership dedicated Supplier Partnership pagenewsletter of our website andannual will bemanagement included inon our such asnewsletter. the FETSA website, the monthly and the report companies Supplier Partnership page of our website and will be included in our communication tools Supplier Partnership page of our website and will be included in our communication communication suchindustry as the FETSA website, the be monthly the tools which are circulatedtools to senior executives. You will entitlednewsletter to draft anand article suchequipment as the FETSA website, the monthly newsletter and the annual management report Loading manufacturers such as the FETSA website, the monthly and the annual report management report which arenewsletter circulated to senior industry management executives. in aannual quarterly supplier partnership newsletter. FeTSA knoWledge exChAnge: Possibility organise industry seminars on relevant You will be entitled to draft an article in a quarterly supplier partnership newsletter. which are circulated toand senior executives. You will be entitled to an article totodraft which industry are circulated to senior industry executives. Youdraft will be entitled an article Companies providing auditing

FeTSA knoWledge exChAnge: Possibility to organise industry seminars on relevant

Should join? topics and/or with the approval of the relevant chair/secretariat to present new/emerging management systems in a quarterly supplier partnership newsletter. in aWho quarterly supplier partnership newsletter. topics and/or with the approval of the relevant chair/secretariat to present new/emerging technologies and legislation to ourPossibility committees/task forces. FeTSA knoWledge exChAnge: to organise industry seminars on relevant Tank farm and Partnership is open to companies FETSA KNOWLEDGE EXCHANGE: to organise industry seminars on Theconstruction FETSA Supplier that do business with tankPossibility storage companies technologies and legislation to our committees/task forces. topics and/or with the approval of the relevant chair/secretariat to present new/emerging maintenance companies topics and/or approval of the relevant chair/secretariat to present new/ or have an affinity with the tank storage sector.relevant This technologies includes, butand iswith notthe limited legislation toto: our committees/task forces. TheSurveying FETSA Supplier Partnership is open to companies that do business with tank companies emerging technologies and legislation to ourstorage committees/task forces. industry seminars on releva FeTSA knoWledge exChAnge: Possibility to organise companies

Who Should join?

FeTSA knoWledge exChAnge: Possibility to organise industry seminars on relevant and/or with approval of or have an affinity with the tank pArT storage Thistopics includes, but is the not limited to:theinrelevant oF sector. our CommuniTy: Use of FETSA meeting rooms Brusselschair/secretariat at preferential to present new/emerg Port authorities topics and/or with the approval of the relevant chair/secretariat to present new/emerging technologies and tologo our committees/task OFFETSA OUR COMMUNITY: Use oflegislation FETSA meeting rooms in Brussels pricesPART (subject to availability). You can use the FETSA on your websiteatandforces. printed pArT oF our CommuniTy: Use of meeting rooms in Brussels at preferential (Tank) Cleaning companies pArT oF our Use of FETSA meeting rooms forces. in Brussels at preferential andCommuniTy: legislation to our committees/task Technical equipmenttechnologies providers Surveying companies preferential (subject availability). You use the FETSApartnership. logo on your materials in orderprices to state that to you are part of thecan FETSA supplier prices (subject to availability). You(subject can use the FETSAYou logo website printed prices to availability). canon useyour the FETSA logoand on your website and printed Electrical & Instrumentation (E&I) website and printed materials in order to state that you are part of the FETSA materials in order to state that you are part of the FETSA supplier partnership. Companies providing safety services Port authorities materials in order to state that you are part of the FETSA supplier partnership. control automation services supplier partnership.

Technical equipment providers Surveying companies pArT oF our CommuniTy: Use of FETSA meeting rooms in Brussels at preferential Database providers Fire fighting/protection companies

(Tank) Cleaning companies

inSighT: You will receive ourat exclusive members only and annual manageme prices (subject availability). You can use logo on your website andnewsletter printed pArT oF our CommuniTy: Use of to FETSA meeting inthe Brussels preferential INSIGHT: Yourooms will receive ourFETSA exclusive members only newsletter and annual Magazines andproviding other industry Companies safety services Port authorities report so you are kept informed about the challenges we face in EU policy. inSighT: You will receive our exclusive members only newsletter and annual management Loading equipment manufacturers Electrical & Instrumentation (E&I) management report so you are kept informed about the challenges we management face in EU policy. materials order to state thatour you are on part of the FETSA supplier partnership. prices (subject to availability). Youincan the FETSA logo your website and printed publications inSighT: Youuse will receive exclusive members only newsletter and annual report so you are kept informed about the challenges we face in EU policy. control automation services in order to state that you are part of the FETSAabout supplier partnership. Firematerials fighting/protection companies (Tank) Cleaningwe companies report so you are kept informed the challenges face in EU policy. Companies providing auditing

PRICE

and management systems

Database providers

Loading manufacturers Electrical (E&I) fee ofequipment EUR 2500 (excl. VAT.) • Annual inSighT: You will receive & ourInstrumentation exclusive members only newsletter and annual manage Tank farm construction and Magazines and other industry publications at the start of the subscription period (1 January). control automation services • Billed annually report so you are kept informed about the challenges we face in EU policy. priCe maintenance companies priCe providing auditing inSighT: Youtowill receive exclusive members only annual management applications for Supplier Partnership are subject approval theour FETSA Executive Committee, andnewsletter subject to theand terms and conditions set • AllCompanies · Annual feefee of EUR 2500 (excl. VAT.) out in the Supplier Partnership Agreement. and management systems Database providers · Annual of EUR 2500 (excl. VAT.) report so you are kept informed about the challenges we face in EU policy. priCe • Competition law must be respected. · Billed annually atatthe period(1(1 January). · Billed annually thestart startof ofthe the subscription subscription period January). Tank farm construction Magazines and other industry publications · Annual fee of EUR and 2500 (excl. VAT.) · All· applications forforSupplier aresubject subjecttoto approval FETSA Executive Committee, All applications SupplierPartnership Partnership are approval thethe FETSA Executive Committee, maintenance companies priCe

· Billed annually at the startand ofand thesubject subscription period (1 January). FETSA TANK STORAGE theterms terms andconditions conditions set Supplier Partnership Agreement. subject toto the and setout outininthe the Supplier Partnership Agreement. · Annual fee of EUR 2500 (excl. VAT.) · Competition law must berespected. respected. CONFERENCE 2024 · All applications for Supplier Partnership are subject to approval the FETSA Executive Committee, · Competition law must be priCe and subject to the terms andannually conditions setstart out of in the subscription Supplier Partnership Agreement. · Billed at the period (1 January). 12-13 March 2024 l Rotterdam Ahoy, the Netherlands

· Annual fee of EUR 2500 (excl. VAT.)

· Competition law must· All be applications respected. for Supplier Partnership are subject to approval the FETSA Executive Committee,

and to the termsperiod and conditions set out in the Supplier Partnership Agreement. · Billed the start ofsubject the (1 January). Contact Ravi annually Bhatiani,atrb@fetsa.eu for subscription further information Contact Ravi Bhatiani, rb@fetsa.eu for further information.

· Competition must be respected. · All applications for Supplier Partnership are subject to approval theinformation. FETSA Executive Committee, Contact Ravilaw Bhatiani, rb@fetsa.eu for further

FETSA and subject to the terms and conditions set out in the Supplier Partnership Agreement. Rue Abbé Cuypers 3 | b 1040 Brussels, FETSA Belgium | Tel. +32 2741 68 33 | www.fetsa.eu Rue Abbé Cuypers 3 | B 1040 Brussels, Belgium · Competition law must beFETSA respected.

Federation of European Tank Storage Associations

MARKET ANALYSIS CRUDE PRICES

US APPETITE FOR HEAVIER BARRELS TO REMAIN ROBUST IN THE MEDIUM-TERM Kpler’s Johannes Rauball shares insights into the global crude market WESTERN REFINERS were largely able to circumvent the effects of EU sanctions on Russian oil relatively smoothly and adapt to the reshuffling of global trade flows over the last year. However, its impact can still be felt today, particularly across medium and heavy crude markets. In fact, European refiners have become increasingly dependent on imports of heavier barrels from Latin America and the Middle East, which have now replaced those that had previously come from Russia. This has, however, made Europe vulnerable to supply outages and production cuts by OPEC+, with India and China reaping the benefits of heavily discounted Russian oil, which has been flowing toward Asia in record amounts. IMPACTS OF THE RUSSIA-UKRAINE WAR Prior to the Russia-Ukraine war, Europe imported some 1.9 Mbd of crude and condensate from Russia, with Russia’s medium-sour benchmark, Urals, accounting for 70%, or 1.4 Mbd of this total (Kpler). Given the latter grade’s qualities (API gravity of 31.0° and sulfur content of 2.0%), the crude yields slightly higher amounts of heavier products, which made Urals extremely important to European refiners at the time, with the continent being net-long gasoline and structurally short diesel. This is also why Europe’s transition away from Russian crude became so significant when the embargo on Russian crude came into effect as many refiners sought to find new outlets in Latin America and the Middle East precipitously. As a result, European crude imports from Latin America have been averaging 0.7-1 Mbd since June 2022, up around 50%, or 400 kbd vs pre-war times. A large part of this increase has come on the back of a supply ramp-up in Guyana, with the country bringing online two FPSOs, known as Liza Destiny and Liza Unity, over the last two years. This has kept flows of crudes (comprising an API gravity of between 32.1°-33.5°) from Guyana to Europe elevated and around 280 kbd so far this PAGE 34

year, which accounts for roughly 70% of Guyana’s total export stream. Given that ExxonMobil is expected to bring online its third FPSO, Prosperity, in the Payara field at the end of this year (production capacity will be 220 kbd), flows from the country to Europe should continue to climb over the coming year as well. This, alongside a supply ramp-up of Europe’s medium-sour complex, Johan Sverdrup (API gravity of 28.0° and sulfur content of 0.8%), has helped European refiners replace Russian barrels over the last year, with almost all Johan Sverdrup’s available export stream (averaging around 700-750 kbd) flowing towards European refiners over the last months. It should be noted, however, that the rise in flows of the latter grade to European destinations can also be attributed to lower buying from China, which used to buy an average of some 240 kbd in 2021, vs 120 kbd in 2022 and only 20 kbd so far this year. Considering the rise in European demand for these types of crudes, grades such as Johan Sverdrup and Grane have been enjoying a notable premium to lighter crudes in recent months. A decline in regional crude supply, particularly in the UK, and voluntary cuts by OPEC+, have contributed towards this appreciation too.

HEAVY BARRELS IN ASIA The appreciation of heavier grades is something we observed across Asia as well, with OPEC+ cuts keeping the regional availability of heavier barrels pressured and Asia’s medium-sour Dubai benchmark supported. In fact, the past months have seen the Brent-Dubai EFS spread narrow significantly, with the spread remaining relatively close to parity over the last two months vs an average of $2.60/bbl over H1-2023, and even reaching negative territory recently (although only for one day) which, historically speaking, is a very rare occurrence. This has helped lift west-to-east crude flows, with China, which is known to be a price-sensitive buyer, taking full advantage of this, and buying large amounts of crude, particularly from the US, earlier in the year. The appreciation of the Dubai benchmark is, however, less surprising when we consider that 80% of Saudi Arabia’s production comprises heavier and sourer barrels, and its unilateral decision to cut 1 Mbd from July onwards has kept global supplies of heavy liquids extremely tight, particularly across Asia. Whilst the kingdom plans to reduce supplies until the remainder of the year, an extension of their voluntary production

MARKET ANALYSIS CRUDE PRICES years, which is a trend that should remain in place in the medium term as well, with the 590,000 b/d Trans Mountain Expansion (TMX) pipeline coming online early next year.

The expansion of the TMX pipeline will provide Canadian oil sands producers with new outlets for their crude, including refiners across the US west coast, which typically consume a heavier diet, with many currently importing crude from Latin America. This will also help lift WCS Hardisty crude differentials, which continue to price at steep discounts to WTI Houston. Other beneficiaries will be refiners across Asia, particularly India and China (both are already importing heavy sour barrels from Canada via the US Gulf Coast), and several US refiners in PADD-2.

cut is becoming increasingly likely as the global crude balance is expected to lengthen considerably over H1-2024. This lengthening is a result of rising non-OPEC+ supply, which will be coming mainly from Brazil, Guyana, and the US, with a slowdown in global economic growth, particularly across the US and Europe, and the resulting decline in crude demand contributing towards this as well. The lengthening in global balances in early 2024 should, however, coincide with a rise in Indian and Chinese crude demand, which will help minimize the impact this will have on crude markets and flat prices. In fact, crude demand in the former country is expected to gradually pick up now that the monsoon season has come to an end, whilst the latter should benefit from a rise in activity towards the end of the year, which will lift Chinese crude demand well above the levels seen in previous years. One decisive factor that may provide some downward pressure to crude flows and prices are elevated Chinese crude inventories, which have risen almost continuously so far this year and settled just shy of their all-time highs of 1 billion barrels, despite seeing a notable downtick over August and September (stocks fell a combined 40 mbbls over the last two months).

volatility as well, with sweet-sour spreads coming increasingly under pressure last year amid the Biden Administration’s record-breaking 180 Mbbls SPR release. With SPR releases coming to an end and the US deciding to replenish its SPR over the second half of this year instead, heavy crude markets have regained some momentum. This is particularly true when we consider how domestic throughput levels have remained well above year-ago levels so far this year, with intake coming in at around 16 Mbd in late September, up 600 kbd vs the 5-year average. It should be stated, however, that medium to heavy crude differentials have come marginally under pressure recently amid a double whammy of rising seasonal maintenance, which will reach its peak in October, and a decline in domestic demand, with peak gasoline demand now officially behind us. US refiners have become increasingly dependent on oil from Alberta over the

This assumption is particularly pertinent when we consider that Mexico is trying to become energy self-sufficient, with its 340 kbd Dos Bocas refinery expected to come online next year and run entirely on domestically produced crudes. Considering this, exports of heavy sour Maya, the country’s flagship grade (the majority is exported to the US), are slated for a significant decrease in 2024, which will keep the availability of heavier grades across the Americas constrained, pushing US refiners to look further afield for similarquality barrels. For more information: Johannes Rauball is a crude analyst at Kpler. www.kpler.com

01 European crude and condensate imports by region, kbd 02 Chines crude inventories (billion barrels) 03 US crude imports by origin regions (‘000 b/d)

With market structures remaining in backwardation and outright prices averaging above the levels seen earlier in the year, Chinese refiners will look to draw down these stocks first, rather than rely on imports to cover their domestic needs, which should keep global markets marginally oversupplied and crude prices pressured in the months ahead. THE STATUS IN AMERICA When it comes to the Americas, heavy crude markets have seen their share of

PAGE 35

MARKET ANALYSIS HYDROGEN HUBS

THE RISE OF HYDROGEN HUBS IN NORTH AMERICA Cyann Fielding asks the experts at EY about the emergence of North American hydrogen hubs following the Inflation Reduction Act and governmental funding

THE UNITED STATES is paving its way towards the energy transition. Propelled by the Inflation Reduction Act (IRA) and the Department of Energy’s (DoE) robust financial commitment to advancing the energy transition, the nation is poised to take a prominent role in shaping a greener future. The shift in thinking extends across traditional energy giants, power utilities, and emerging players, all eyeing the potential of hydrogen as a game-changer. Until about 14 months ago, hydrogen projects in the US were somewhat scarce and lacked scalability. However, the introduction of the IRA, the investment climate for hydrogen projects has become markedly more enticing. Hydrogen, a key technology in the global energy landscape, is now firmly on the American agenda. This new-found capital has established a flurry of hydrogenrelated projects and initiatives over the past year. WHAT A HYDROGEN HUB LOOKS LIKE IN NORTH AMERICA A hydrogen hub is a geographic clustering of hydrogen producers, transporters, and consumers that are all committed to involving low carbon intensity hydrogen.

PAGE 36

Sean Heinroth, principal, EY-Parthenon, comments: ‘It’s important that nobody’s getting into hydrogen for the sake of hydrogen. Here in the US, it is part of their corporate strategies, their objectives that they’re pursuing on behalf of their stakeholders.’ He adds: ‘It is part of the solution in some cases. These hubs in the short term, are going to take on entirely different forms, as determined by the natural advantages that are immediately available to them.’ Natural advantages, such as renewable electricity and water resources for green hydrogen, methane gas and carbon capture infrastructure for blue hydrogen, will situate the development of hydrogen projects at different rates. However, as the hubs are built out, development will even out. ‘These regional hubs are not all created equal,’ says Greg Matlock, EY Global and Americas energy and resources tax leader and EY Americas energy transition and renewable energy leader. ‘They mainly require three components: demand, supply and infrastructure.’ The balance of these will determine a hub’s rate of development. In the US, hubs will be able to advance, thanks to new investments. However, Matlock notes: ‘This advancement will be

in different stages of maturity. Some of these hubs are going to advance a little quicker, either because they have the resources or infrastructure, or because they already have a built-in capability or capacity for offtake. So you’ll see these projects advance at different speeds.’ THE JOURNEY TO NET-ZERO Increased incentives are just one aspect of a broader push to either create energy from lower carbon intense sources or to operate in cleaner and more efficient manners. However, the US also needs energy stability and security, but where possible it needs to be cleaner and more efficient. Both Matlock and Heinroth predict there will be a lot more lower carbon intensity activities taking place in an attempt to meet the net zero carbon emissions targets set in the US. Hydrogen hubs are just one part of this movement. The Inflation Reduction Act is specific to the US, and it was designed primarily to increase domestic content, bring job stability and to increase the options for alternative energy. Many of the products can be used and made into other things such as ammonia – which results in lower carbon intense products globally.

MARKET ANALYSIS HYDROGEN HUBS

‘Many of the products can be used and made into other things such as ammonia – which results in lower carbon intense products globally.’ If hydrogen projects are capital intensive, it means individuals are going to need diverse sources of capital to speed adoption. The IRA, particularly its tax credit provisions, significantly reduces the per-kilogram cost of clean hydrogen production in the US, making it an enticing prospect for investors and project developers. This legislative act is poised to have a substantial impact on individual projects and the broader development of hydrogen hubs. Heinroth comments: ‘The idea that we’re simply going to electrify everything is probably not a short term reality for us, even if capital was not a consideration. So when you start looking at how we decarbonize some of the transportation fuels, hydrogen lends itself more readily to some of those applications. There’s just a technical limit. Hydrogen lends itself in the forms of ammonia and methanol, especially to be burned in a traditional combustion fuel engine. And so you maximize the lives of those investments without continuing down the path of a carbon intensive fuel.’

natural resources and populations needed to establish hydrogen hubs. Regions with abundant solar and wind resources are prime locations for green hydrogen production, while areas with existing grey hydrogen infrastructure are well-suited for blue hydrogen projects. These geographical advantages or disadvantages influence project decisions and investments. Heinroth notes that: ‘There are naturally advantageous spots in the US. These will likely align with the initial winners in the race to establish hydrogen hubs.’ THE PICTURE AT PRESENT Whilst hydrogen hubs are yet to fully materialize, there are over 50 projects currently either producing hydrogen, or on their way to producing hydrogen. Creating a geographical ecosystem that consists of low carbon intensity, hydrogen producers, transporters and off takers, still remains aspirational, yet attainable, according to Heinroth. Heinroth comments: ‘What does exist in the landscape primarily is, aside from these points, solutions, something that mirrors a hydrogen hub – the network that runs along the Gulf Coast, from Sweeny, Texas, all the way to New Orleans.’ Although it does not represent the ultimate potential of hydrogen hubs, it serves as a promising model, especially considering its decades-long development.

WHAT NEEDS TO HAPPEN NEXT? Amidst these developments, the need to measure carbon intensity has arisen as a critical consideration. Currently, the responsibility for measuring carbon levels primarily falls on hydrogen producers themselves. However, there’s a growing consensus that independent, auditworthy entities should assess and verify these measurements instead. As the hydrogen market evolves, standards for measuring carbon intensity will likely emerge, potentially involving third-party verification to ensure transparency and accountability. The emergence of hydrogen hubs in North America is driven by a confluence of legislative support, financial incentives, and a commitment to sustainable energy solutions. These hubs represent a critical step toward a greener future, where hydrogen plays a pivotal role in achieving cleaner, more efficient energy systems. For more information: www.ey.com

DEPARTMENT OF ENERGY FUNDING The DoE’s decision and commitment to provide funds is always going to be helpful as projects or geographies are looking to build and develop markets around hydrogen. Matlock and Heinroth believe this will come in two or three different types of buckets. Matlock explains: ‘The largest impact, which shouldn’t deteriorate from the DoE funding, is the tax credit in the IRA. The ability to get up to a $3 per kilogram tax credit for hydrogen produced in the US is by far the largest economic incentive, not only for non-US money, but global investment to look at producing hydrogen in the US. So the IRA contains a massive incentive that is driving a lot of discussions. And the DoE’s funding commitment, likewise, is going to help. It shows a collective commitment from our government to build, develop and expand hydrogen as a resource in the US.’ THE IMPACT OF GEOGRAPHY The vast expanse of the US brings both advantages and challenges. Geography plays a pivotal role the availability of

PAGE 37

MARKET ANALYSIS FIREFIGHTING FOAMS

ENSURING A SAFE, RESPONSIBLE TRANSITION Kathryn Clay, president of the ILTA, explores how the ILTA is influencing policy to support a reasonable transition to new firefighting foams

MANY OF the bulk liquid products handled by International Liquid Terminal Association (ILTA) member companies demand special precautions due to their flammable properties. While significant fire events at terminals are rare, responsible facility management demands that terminal operators maintain capabilities to respond quickly and effectively to fires when they do occur. Recently, a class of chemicals called perand polyfluoroalkyl substances, or PFAS, has drawn the attention of news outlets and policymakers. HISTORICAL FIREFIGHTING For decades, the tank storage industry has relied upon aqueous film-forming foams (AFFF) to protect communities, workers, commodities, and infrastructure from potentially dangerous fire hazards and environmental risks. Because of the unique characteristics of PFAS, jurisdictions across the country have been able to use foams to control fires and mitigate spills and air pollution. In an editorial in Roll Call, Senator Shelly Moore Caputo, (R-WV) argued that Congress should deliver solutions that reduce risks posed by PFAS in a scientific, bipartisan, and responsible manner. Politico has been writing about the tricky business of assigning liability for PFAS contamination. PAGE 38

WHAT ARE THE ALTERNATIVES? ILTA recognizes the acute policymaking challenges posed by this set of issues, and respects the vitally important work that the US Environmental Protection Agency (EPA) is undertaking to address PFAS through the agency’s PFAS Council and the PFAS Strategic Roadmap. Moreover, ILTA members are committed to moving away from PFAS as quickly as practicable, while remaining dedicated to a safe, orderly, and industry-wide transition. ILTA firmly supports a safe, strategic, well-managed transition to fluorine-free, or PFAS-free, firefighting foams, while ensuring public and worker safety. ILTA is working with the Natural Resources Defense Council and the International Association of Firefighters on legislation to provide a safe and achievable path away from PFAS-based firefighting foams nationwide. Transitioning the liquid terminal industry’s existing stocks of firefighting foam to fluorine-free foams will require collaboration between regulators, the public and industry stakeholders, including terminal owners and operators, firefighters, foam manufacturers, and disposal vendors. ILTA also recognizes that significant barriers must be addressed before the industry can achieve a complete, industry-wide transition to safer alternatives.

TRANSITIONING AWAY FROM PFAS Alternative foams are not a drop-in substitute for AFFF. There are important research, development, and deployment, training, disposal, and other activities that policy makers and other stakeholders must strategically think through in developing a transition timeline. For example, to be effective, the replacement products may require higher volumes of foam, additional labor, or different application techniques and equipment. Additionally, there are potential safety risks associated with a transition that fails to provide time needed for coordination

MARKET ANALYSIS FIREFIGHTING FOAMS between these stakeholders for testing, training, equipment replacement, disposal, and other critical activities. Terminal operators rely on the principle of mutual aid to ensure they can provide adequate responses to incidents. During an event, neighboring facilities, sometimes from different states may provide foam, equipment, or fire-fighting personnel. Importantly, due to the foam flow rates and potential contamination concerns, equipment prepared to deliver PFAS containing foams cannot be used to deliver fluorine-free foams, and vice versa. For the largest fires, foam may be provided from other facilities across the region or even from across the country. This inherent interdependence of terminals makes it necessary to allow additional time for the entire industry to move together to eliminate PFAS containing foams. Conflicting PFAS policies at the state level can make it hard for fire responders to cross state lines to help fight fires and spills, as is sometimes required. SUPERFUND AND LIABILITY ILTA supports legislation that would properly address liability for PFAS pollution. The association believes that, in its current form, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or ‘Superfund’), is the wrong approach to address contamination resulting from past use of PFAS-based fire-fighting foams. The ILTA asks Congress to give EPA additional authority to weigh important factors such as whether an industry was required by federal regulation to use PFAS containing products. ILTA filed comments in August on EPA’s advance notice of proposed rule-making soliciting input and data to assist the agency in its consideration of potential development of future regulations pertaining to PFAS under Superfund. In those comments, ILTA said EPA’s proposal is ‘unreasonable because it results in regulatory conflict between CERCLA and the Occupational Safety and Health Act of 1970.’

use of such foams in the near term may represent one of few effective tools for controlling the fire and preventing serious threats to public health, welfare or the environment,’ the ILTA wrote. Furthermore, it argued for ‘an exclusion from CERCLA liability for the use of AFFF that contain PFAS in response to a bulk liquid terminal fire or similar emergency.’ Legislation offered by Wyoming Senator Cynthia Lummis (R-Wyo.) would amend the CERCLA definition of ‘owner or operator’ to explicitly exclude owners or operators acting in good faith in accordance with regulatory requirements to use and train with PFAS-based firefighting foams. FOAM DISPOSAL More than 2,000 bulk liquid terminal facilities, dispersed across the country, could soon be unfairly burdened by Superfund liability as a result of these past practices. Today, there is no universally accepted method of safe disposal of PFAS-based firefighting foams. Incineration of PFAS chemicals is banned in several states and a moratorium on PFAS incineration is in place at Department of Defense facilities. While new technologies to destroy PFAS in firefighting foams have recently entered the marketplace, more work is needed to validate these technologies for all legacy foams.

Challenges are never-ending, including the rare circumstance in which a significant fire occurs at terminal facilities. For decades, the tank storage industry has relied upon PFAS-containing foam to protect communities, workers, commodities, and infrastructure from potentially dangerous fire hazards and environmental risks from fire events. Bulk liquid terminal operators have acted in good faith to carry out their responsibilities and obligations under law. Overall, ILTA advocates for clear national standards to avoid a piecemeal approach across different states. A coordinated transition to fluorine-free firefighting foams is essential to safe incident response across the liquid terminal industry. ILTA firmly believe that the inflexible regulatory approach possible under the current form of CERCLA is not in the best interests of the US economy or the countless customers who are ultimately served well by the nation’s bulk terminal owners and operators. ILTA stands ready to partner with EPA on these important issues and to lead the industry work to discontinue use of these products. For more information: The ILTA is holding its annual conference and trade show on 6-8 May 2024 in Houston, Texas. Tank Storage Magazine is proud to be the official media partner for this event. www.ilta.org

A PATH FORWARD Bulk liquid terminals owners and operators are stewards of the nation’s environment, and terminals operated by ILTA members actively support, and engage in, a wide range of best practices to ensure sustainability and safety.

01 Kathryn Clay, president at ILTA

Under EPA’s existing proposal many bulk liquid terminal facilities, as well as airports, municipal fire stations, and potentially other industrial facilities, could be targeted under the Superfund law for relying on PFAS substances – long before any health or environmental hazards were suspected. As written now, the Superfund law could make terminal operators legally and financially responsible for simply adhering to best safety practices and OSHA regulations for fire suppression. ‘When there is a major fuel fire at any location, the continued availability and

PAGE 39

MARKET ANALYSIS RECRUITMENT & TALENT

TALENT ONBOARDING & PROCEDURE CLARITY Christian McDermott from Voovio shares how implementing procedure simulation can solve the tank storage industry’s workforce challenges

ACCORDING TO a joint report from Deloitte and The Manufacturing Institute on the state of the industrial workforce, attracting and retaining a quality workforce is a top focus for 83% of manufacturers surveyed.1 Facilities continue to lose people with 20-40 years of equipment-specific expertise, and often struggle with onboarding and procedure clarity. This lack of clear procedures results in a lack of standardized training and procedure execution, which can lead to unplanned events and risks. So, how can industry solve this issue?

SMEs – feeling overwhelmed; unreliable equipment leading to unplanned events, near misses or incidents and; losses in safety, quality and environmental credibility. PROCEDURE CLARITY The Abnormal Situation Management (ASM) Consortium’s research on causes of abnormal events revealed that: • In 51% of cases, the procedure was not followed.

• In 40% of events, the procedure was wrong. • Only 6% of the time, the procedure was not followed correctly2. Voovio reviewed over 500 procedures laid out by the industry and concluded that procedure clarity is an issue. Voovio found three main trends: 1. Procedure does not reflect operator practice. There is often variation from shift to shift, due to training inconsistencies or a lack of standardized execution.

THE SKILLS GAP

Actual step from customer procedure

Actual no. of actions

Voovio has been collecting feedback from major midstream and downstream customers. The same concerns prevail throughout:

Open the non-instrumented fuel gas cock valves and air dampers

10 actions: Interacting with 5 air dampers and actuating 5 fuel gas valves

• Onboarding the traditional way does not work.

Actual step from customer procedure

Actual no. of actions

• Facilities rely on only a few SMEs for hands-on training.

Manually flush all CTOs, top/bottom flushes, bypasses around flush flow meters, and any other isolation flush valves

Over 50 individual actions, actuating 15 different valves

• The industry is losing subject matter experts (SMEs) and ‘tribal knowledge.’

• Operators have experienced 50% or less of what they need to know on qualification. • Practice in the field does not match procedure. This results in workers – specifically PAGE 40

CAUTION: Failure to properly flush all CTOs may result in a reactor poisoning event

MARKET ANALYSIS RECRUITMENT & TALENT drivers now learn, practice and test on the actual loading procedure in Voovio’s ER platform, before arriving at the site. This has created huge time savings for Calumet operators of 75-80%. Drivers know what to expect and are better prepared, with fewer incidents, and Calumet now has automated, documented truck driver test results making life easier.

Reduced unplanned events and improve equipment reliability: BASF’s goal for implementing the simulation system was to update its operator training model to be faster, more interactive, self-directed, and be more systematic about capturing and transferring organizational knowledge, from experienced operators to newer employees. In addition to reducing the time its SMEs spent training others by half and greatly accelerating the learning process, BASF has used the simulations to reduce unplanned events and startup delays, improve equipment reliability, reduce downtime, increase safety, and maximize profitability.3

References: 1 ‘Deloitte and The Manufacturing Institute: Big Gains in Perceptions of US Manufacturing as Innovative, Critical and High Tech’ 2 ‘The Abnormal Situation Management (ASM) Consortium’

2. Ambiguities and generalizations. Procedures assume clear understanding by the operator, but this is often not the case. 3. Inexperience. There is a lack of practice in the field. Operators only experience ~40% of the procedures they qualify on for any given job. The ambiguities and generalizations in procedures are exemplified in tables 01 and 02 on the opposite page. THE SOLUTION Enhanced reality procedure simulators can provide procedure clarity with clear action steps in the form of a checklist, documented from the SME. This allows operators to practice these procedures 24/7 in an augmented reality environment. This is achieved thanks to Enhanced Reality’s Digital Replica of the production area and equipment (Figure 03). Flows can be simulated where necessary (Figure 04), and the procedures are available in the form of simulators. Procedure simulators help to capture knowledge and equipment specific

knowledge in an accessible format and linked to real visuals of the equipment. Operators therefore have a standardized way to learn and review procedures, leading to clarity.

3 ‘BASF presentation to Manufacturing Leadership Council, Sep 2021, Kristen Pforr, VP Operations Chemical Intermediates and others’ For more information: www.voovio.com

The simulators are virtual SMEs, available anytime, anywhere. THE IMPACT

01 Example 1 – simple and common

Onboard faster & ease pressure on SMEs: Voovio and a major petrochemical customer in Texas conducted a two-day exercise to compare ER and traditional onboarding. Two groups of new hires, 12 operators each, had to learn and test on one procedure each day. The results overwhelmingly concluded that ER greatly accelerated the process of learning a new procedure by 65% and reduced the time the SME needed to spend with the new hires by 73%.

02 Example 2 – more extreme example, but fairly common 03 ER’s Digital Replica of the production area and equipment 04 Flow simulation

Train and qualify third party truck drivers: Calumet Montana Refining transformed how new truck drivers qualify to load. Instead of watching a video and then being shadowed by a Calumet operator for several loads, new PAGE 41

TECHNICAL AST CONSTRUCTION

DESIGNING & FABRICATING ABOVEGROUND STORAGE TANKS Celebrating 50 years of excellence, the experts at PALA Group share the secrets to a successful partnership and AST build IN 1973, PALA Group embarked on a journey that would redefine industrial construction solutions. Today, PALA proudly celebrates 50 years of unwavering commitment to quality, safety, and innovation. From PALA’s roots in the Gulf Coast to serving clients nationwide, PALA Group has been a steadfast partner to terminal operators, delivering top-tier aboveground storage tanks (ASTs) with precision and expertise. STEP BY STEP: CRAFTING YOUR PERFECT AST Terminal operators and owners will be well-acquainted with aboveground storage tanks (ASTs) and know that significant planning goes into the construction of a new one. An EPC tank builder, like PALA, can take a client through the full engineering, procurement and construction process, to alleviate some of the stresses – and risks. STEP ONE: DESIGN AND ENGINEERING Every AST is unique, designed to meet your specific needs. Initial design should capture:

• Self-supported or structure supported cone roofs.

STEP TWO: FOUNDATION

• Material compatibility • Pressure and temperature requirements • Storage duration considerations • Comprehensive containment solutions • Regulatory compliance

The tank foundation forms the cornerstone of AST performance, ensuring optimal tank functionality and preventing containment issues. Items to be considered:

Explore tank designs tailored to your industry. Common designs include:

• • • •

• External floating roof (EFR) tanks, where the roof floats on the product surface, reducing vapor emissions, preventing product evaporation and minimizing environmental impact. • Internal floating roof (IFR) tanks, where the internal roof floats on the product surface in conjunction with a permanent roof structure. Utilized for weather resilience.

PAGE 42

Engage in a discussion about your design requirements with PALA’s team of inhouse engineering experts.

Soil condition assessment Environmental factors Tank size and application Tailored containment solutions

PALA’s in-house civil construction team can complete the tank foundation work before the tank installation process begins, synergize construction activities. STEP THREE: PREFABRICATION Aboveground storage tanks are manufactured in specialized fabrication shops, specifically designed to

accommodate the production of large metal tank components. These facilities boast extensive laydown areas spanning several acres and house heavy machinery such as cranes and welding equipment. Within these facilities, proficient technicians meticulously transform design engineers’ specifications into the various components that comprise the AST. PALA’s AST fabrication and ASME vessel facility is located in Hammond, LA, with 94,000 square feet of fabrication under roof, a dedicated alloy shop, and 15+ acres of laydown facility.

TECHNICAL AST CONSTRUCTION

WHO IS PALA GROUP? Founded in 1973 by Rick Tarajano, PALA began in the Louisiana sugar industry, expanding into diverse sectors like pulp and paper, refining, and petrochemicals. In 1987, PALA expanded into aboveground storage tanks and ASME vessel operations. As an employee-owned company (ESOP) since 2008, PALA Group has continually grown and diversified, offering: • SMART Safety Group (2012): A company founded by PALA to help contractors and manufacturers in their quest to protect their most valued asset – their employees

STEP FOUR: FIELD ERECTION After prefabricating an aboveground storage tank and preparing the site, the installation phase begins. Installation can range from unloading a fully assembled small-diameter AST onto the prepared foundation to delivering tank components to the site and having them assembled on-location by a skilled installation crew. PALA’s field installation teams, composed of employee-owners, prioritize safety, quality, and nurturing enduring client partnerships. STEP FIVE: PROTECTING THE TANK Preserving storage tanks from corrosion and ensuring their structural longevity often necessitates the application of coatings, liners, or rubber liners. This crucial aspect of the project can be expertly handled by US Rubber and Specialty Applications, a subsidiary of the PALA Group. STEP SIX: RIGOROUS EVALUATION & CERTIFICATION After the installation/erection of a tank, it must undergo a rigorous evaluation and certification process before it can be commissioned for use. Given the potential hazards associated with substances

stored in ASTs, it is imperative to verify that the vessel is both operationally sound and compliant with all relevant standards and regulations before it is put into service. Two key standards govern AST fabrication: API 620 and API 650. Contact PALA’s in-house engineering and design team to evaluate which standard best meets your requirements.

• US FUSION & Specialty Construction (2017): A subsidiary providing services complementary to PALA’s, including fabrication and installation of plastic pipe and plastic liner systems, concrete embed liners and various erosion control systems

For more information: Visit PALA’s tank engineering, procurement and fabrication facilities in Baton Rouge and Hammond, Louisiana. Explore the team’s comprehensive tank maintenance programs, in-shop and on-site repair services, and innovative 3D Laser Scanning for tank analysis and inspection.

• ARCCO Power Systems (2021): A subsidiary specializing in the sale, service, and rental of new and used generators ranging from 10kW to 3.5MW – offerings that are particularly useful in emergency response and disaster recovery situations

www.palagroup.com https://www.linkedin.com/company/ pala-interstate/

• Elite Helical Solutions (2021): A subsidiary providing specialized helical piles as a deep foundation solution for industrial, midstream, and commercial building markets across the Gulf Coast

01 PALA fuel tanks 02 PALA’s fuel tank crew 03 Tank roof being craned into position

• US RUBBER & Specialty Applications (2023): A subsidiary providing field and shop installation of rubber liners and specialty coatings in tanks , vessels , piping and other specialty items. ‘PALA has evolved into a group of growing companies that relentlessly focuses on delivering the best possible service to our customers and creating value for our group of employee-owners,’ says Scott Barringer, PALA CEO. ‘I’m proud to look back at our humble beginnings and see how far we’ve come in 50 years.’

PAGE 43

TECHNICAL CONE ROOF STRUCTURES

GETTING TO KNOW YOUR AST’S FIXED ROOF STRUCTURE Derek Slovenec from The Equity Engineering Group explains how cone roof support structures function and how to prioritize inspections MANY ABOVEGROUND storage tanks (ASTs) in service today were designed with a fixed cone roof, supported by a system of rafters and columns. Understanding the intended function of and interactions between components in the roof structure is critical to identifying potential signs of impending failure and employing effective mitigation. Derek Slovenec, senior engineer at The Equity Engineering Group, highlights key aspects of tank roof support structures and identify design requirements, potential failure modes, and areas of emphasis for inspection to empower informed decisions regarding their fixed roof ASTs.

PAGE 44

ROOF RAFTERS

LATERAL BRACING

Roof rafters carry loads primarily in flexure and are designed for strength in accordance with Chapter F of AISC 360. A limit on spacing between rafters is set by API 650 (Section 5.10.4.4 in the 13th edition) to protect the roof plate from damage. There is also a slenderness limit of 300 set by API 650; this is intended to protect against lateral torsional buckling (LTB), which is the primary failure mode of rafters. This failure mode is characterised by a ‘rolling over’ of the rafters where they move out to one side (lateral) and twist (torsional), as shown in Figure 2. This behavior governs the capacity of most rafter sections, including both W-shapes (I-beams) and channels.

Lateral bracing is often installed to mitigate LTB of the rafters. This bracing is typically flat bar stock welded across the top side of rafters, forming a ring around the entire tank. The rafters rely on effective lateral bracing to avoid LTB, and the bracing is only effective if all rafters are tied together. This is why roof structural issues are seldom isolated to one rafter; damage in one member compromises the bracing of its neighbors, and a cascading failure often develops in response to damage and/or overload. It is critical that lateral bracing is installed at the top flange of the rafters (where the rafter is in compression due to bending), all welds are intact, and each span is without visible distortion. Lateral

TECHNICAL CONE ROOF STRUCTURES failure; however, modifications may need to be made to all rafter clips to ensure they behave similarly (to prevent demands from concentrating on a stiffer member, potentially leading to a cascading failure as previously described).

Girders (if present) and columns are generally the least behaviorally complex elements in the roof. Girders collect all rafter loads and are subject to shear and bending, but they also benefit from near continuous lateral bracing from the rafters and thus are much less susceptible to LTB. Columns must adhere to a slenderness limit of 180 set by API 650 and are designed for strength using AISC 360 Chapter E. The plumbness limit of H/100 (limited to 5 inches) must also be considered as part of routine API 653 inspections.

bracing can be added to increase the effective strength of rafters. MANAGING STRUCTURAL ISSUES Most structural failures occur at connections, and AST roof structures are no exception. Rafters often connect to the shell using a bolted shear connection, which is generally adequate provided all bolts remain in place (a minimum of two bolts should be used in the design) and there are no visible distortions. Note that when roof rafters fail, these relatively stiff connection plates tend to locally buckle the top course of the shell. Shell ripples near the top corner joint may indicate rafter failure. Visible sagging of the roof plate is another external indicator of potential roof structure failure.

‘Maintaining the integrity of the roof support structure is essential to keeping fixed roof ASTs in operation.’ When multiple rows of rafters are used, the rafter-to-girder connection is often accomplished using a small clip (hot-rolled angle section or fabricated from plate). These clip connections are susceptible to flexural failure where they ‘fold over’ near the base, particularly the tallest clips attached near midspan of the girders (Figure 2). Inspectors should look for signs of distortion in these connections. Modifications can be made to mitigate

Maintaining the integrity of the roof support structure is essential to keeping fixed roof ASTs in operation. This overview provides a basic understanding of how the various components and system are intended to function, as well as potential areas of concern. Should the need arise, the experts at The Equity Engineering Group are available to assist with any structural and mechanical tank issues. For more information: www.e2g.com sales@e2g.com

01 Fixed roof support structure 02 Roof structure damage

PAGE 45

TECHNICAL LIGHTNING PROTECTION

PRINCIPAL THREAT TO STORAGE TANKS IGNORED BY STANDARDS Protection against electromagnetic fields must be introduced for the petrochemical industry, says Amir Rizk from Lightning Electrotechnologies ELECTROMAGNETIC (EM) waves/fields from lightning strikes constitute indisputable scientific fact. They are a major cause of power outages and are the basis of national lightning detection networks. The issue of the EM effects of lightning has been central in the electric power industry since the 1950s. Yet by 2023, this has still not been meaningfully introduced into lightning protection standards serving ~the petrochemical industry. The video1 of the lightning strike that caused the 3 June 2023 fire in Lake Charles, Louisiana, USA, is instructive. A large steel tank that is inherently wellgrounded, was struck on the handrail. If the only threat posed by lightning is related to currents as described in standards like NFPA 780 and API 545, it’s hard to see how the fire could have started. If however, one considers that lightning produces enormous EM fields/waves, as explained in a video by Lightning Electrotechnologies, suddenly it’s clear that the tank is far more vulnerable, and that the measures in NFPA 780 and API 545 ignore those vulnerabilities and instead make irrelevant or hazardous recommendations. Although the 2020 version of NFPA 780 was the first to acknowledge lightning electromagnetic pulse (LEMP) as a source of ignition for tanks that contain flammable vapors, gases or liquids, no related or additional protection measures were added. According to NFPA 780, metallic structures that are electrically continuous, tightly sealed and of adequate thickness are considered to be inherently self-protected from direct strikes, depending on exposure of any valves or appurtenances. Structures not meeting those requirements shall be provided with lightning rods, bonding and grounding and surge protection devices (SPD) for electrical equipment but there is no reference to any shielding from lightning-related EM fields/waves. A general misconception that plagues the industry is the belief that lightningrelated sparking can only occur at gaps PAGE 46

between two or more conducting objects and thus that grounding and bonding prevents such sparking. However, as shown below, such sparking can occur from a single grounded conducting object into the air surrounding that object, and gaps are not required.

direct strike protection system is struck, it can become the source of hazardous EM effects.

The strike at Lake Charles was to the handrail, not a valve. Since the tank is a metal enclosure, sparking inside the tank is improbable. However, sparking on the outside is likely. Sparking due to lightning EM effects at locations where flammable vapor may be present can occur irrespective of the fact that those locations may be well grounded, well bonded and protected from direct strikes. The only way to protect structures that are sensitive to lightning-related EM effects is to provide them with means of EM shielding.

Figure 01, from a paper referenced in NFPA 780, ‘Lightning Rod Improvement Studies’, by Moore Et Al. shows the electric field produced by a lightning strike and the sparking measured from grounded lightning rods that were within 2 km of the strike. This demonstrates that radiated fields from lightning strikes can induce sparking at great distances, that grounding does not prevent such sparking and that gaps are not required for sparking to occur.

ELECTROMAGNETIC SHIELDING Storage tanks that contain flammable vapor and sensitive electronics have something in common; both can suffer catastrophic damage from a small spark. Electronic circuits can be sensitive to EM effects of nearby lightning strikes; they can suffer radio interference (noise) or damaged components. Although SPDs protect against EM effects induced onto power lines and cables that may be connected to the circuit, they have no effect on EM waves that reach the circuit directly through the air. The solution to that problem is not direct strike protection, but rather to provide EM shielding; conducting enclosures that restrict damaging EM waves/fields from reaching sensitive components. This technique is effective against all kinds of EM effects. This is one reason why many electronic devices are placed inside metal enclosures, both to protect them from incoming EM signals and to prevent them from radiating EM signals. Similarly with flammable vapor-leaking or –containing structures (such as storage tanks), merely relying on protection from direct strikes does not address the threat from EM effects. Furthermore, if the

GROUNDING DOES NOT PREVENT SPARKING

Had the lightning rods in Moore’s paper been pipes emanating from a storage tank or similar, sparking of sufficient energy to ignite flammable vapor could have been induced onto the edges of those pipes. We believe that this is how the majority of lightning related fires at petrochemical facilities start and protecting such grounded pipes/vents and storage tanks with lightning rods, further grounding and bonding would have no beneficial effect in preventing such fires.

TECHNICAL LIGHTNING PROTECTION HAZARDOUS RECOMMENDATIONS IN NFPA 780

A proposal which does take EM effects into consideration, may appear as follows:

In October 2022, the most respected and authoritative body of lightning protection experts in the world, the Scientific Committee of the International Conference on Lightning Protection (ICLP) called for the removal of a section of NFPA 7802. The section in question, which recommends placing corona-generating devices (long conductors with sharp points or similar) inside nonmetallic tanks, was deemed potentially hazardous in the event of direct or indirect lightning strikes.

‘When lightning terminates to ground, the current will mainly penetrate the ground at the location of the strike, with only a minor proportion flowing on the surface within a comparatively small region depending on ground resistivity. The return stroke current will create a magnetic field around it and an associated electric field component generally perpendicular to the ground plane. Such an electromagnetic wave will flow far away from the strike point.

The hazardous recommendation is not supported by any peer reviewed scientific papers, laboratory or field-testing. The only reference is to another NFPA standard, NFPA 77 (Static Electricity). Curiously however, NFPA 77 identifies corona discharges as hazardous in environments with flammable gases, while NFPA 780 recommends putting corona-generating devices inside tanks that contain flammable vapor. In March 2023 an NFPA-appointed Task Group3 determined that the technical committee responsible for tanks lacked expertise in EM effects, however, the NFPA Standards Council decided to take no action. INCORRECT INFORMATION IN API 545 The following is a description of the effects of indirect lightning strikes from API 545 and which omits any reference to EM effects:

A.1.4.3 Effects of Indirect Lightning Strokes For a stroke adjacent to a tank, some current will flow over the outer skin of the shell across the fixed or floating roof and down to the ground on the other side of the shell (see Figure A.3 c). There would be much less energy in the discharge currents moving across the tank as compared to a tank directly struck. As with direct strokes, any discontinuities in the current paths may result in arcing across the gaps. Below is Figure A.3.c from API 545.

If such a wave strikes a metallic object, like an EFRT, the situation can be visualized as follows: The incident wave will be scattered and a penetrating component will flow through the metallic wall. The magnetic field will create a circulating current that will result in a reduced but non-zero field inside the tank. The electric field will create induced fields and space potentials at the edges of the tank and along the roof that could result in sparking. Sparking from grounded or electrically floating metallic objects could constitute a hazard where flammable vapors are present.’ Given the incorrect view expressed in API 545, the recommendations therein are limited to questionable methods of bonding between the floating roof and tank shell with no consideration for any EM effects. Those same recommendations and omissions appear in Chapter 7 of NFPA 780.

found that, between 2018 and 2021, on 271 occasions a storm cell was within 1 km of a site protected with EM Shields and no damage was reported. To date no damage has been reported but no update on lightning activity is available. Steel tanks: The vulnerability here lies wherever escape of flammable vapor is possible. The solution is EM shielding, a structure around the source of vapor escape whose geometry is inherently resistant to sparking and which displaces any sparking away from the source of vapor escape. External floating roof tanks: The same approach applies to EFRTs as the fiberglass tanks except the shield forms a roof made of appropriately spaced steel wires that covers the floating roof and any sources of vapor escape. References: 1 Analysis of Lake Charles Lightning Related Tank Fire Video June, 2023 https://youtu.be/s-9fnuYVb10 2 Full statement By ICLP: https:// www.iclp-centre.org/wp-content/ uploads/2022/11/NFPA_comments_ ICLP_SC_Ot.27.2022.pdf 3 NFPA meeting minutes: https:// www.nfpa.org/-/media/Files/ Codes-and-standards/standardscouncil/March-2023/SC_Final_ Minutes_03_2023.ashx For more information:

WHAT DOES EM SHIELDING FOR STORAGE TANKS LOOK LIKE?

Amir Rizk is VP at Lightning Electrotechnologies.

Non-conducting tanks: If they contain flammable vapor, these are particularly vulnerable to EM effects. This is because non-conducting materials like fiberglass are easily penetrated by EM fields/ waves. These penetrating fields can therefore induce sparking onto metallic components inside the non-conducting tank. The only way to protect a nonconducting tank is to provide it with EM shielding, such as the EM Shield by Lightning Electrotechnologies. A study of 20 sites in an area of high lightning activity

www.lightningelectro.com

514 983 3365 amir@lightningelectro.com

01 Plots in the atmospheric electric field strength on 7 Sep 1996 at the start of a lightning strike near South Baldy Peak and of the currents that flowed to the tips of three ligntning rods exposed on top of 6.1m hight masts. The height to tip radius ratio for the Franklin rod was about 64,000:1; the ratio for the 19mm diameter rod was 680:1 and that for the 51mm diameter rod was 250:1. The strenth of the electric field at the tip of the Franklin rod was calculated to be enhanced over the ambient field by a facor k, of about 12,250; over the 19mm rod, k, was calculatioed tobe 230, and over the 51mm rod, k, was 1.2 02 The current spreads all around from the strike attachment point, including to the tank, up and over the tank and the far side as shown bu the ypical current flow lines and arrows. This current flow plan would only apply to the fast high current pulse. The continuing current would only flow along the ground and tank floor

Figure A.3 – Current routes for flash to a) Top of shell, b) Floating roof, c) Ground near a floating roof tank

PAGE 47

TECHNICAL CARBON OFFSET

HARNESSING RENEWABLES Clean energy finance company EDI Capital explains how introducing on-site renewable projects could offer the best return on investment when it comes to offsetting emissions at the terminal CARBON OFFSET programs are now standard practice for oil and gas companies, but traditional approaches like purchasing renewable energy certificates (RECs) or investing in carbon projects often yield poor returns.

RENEWABLE ENERGY CERTIFICATES

On-site renewable energy projects like solar, energy storage, and microgrids provide a tangible return on investment while achieving carbon offset goals and self-generating offsets.

Renewable energy projects not only contribute to ESG goals but also enhance corporate profitability, provide grid resiliency and a reduced carbon footprint. EDI offers tailored renewable energy solutions after conducting a thorough feasibility evaluation for each site, considering factors such as building footprint, land availability, and existing renewable energy projects.

EDI Capital, a renewable energy developer, focuses on profitable ESG solutions for the oil and gas industry by utilizing innovative technology at customer sites. Through self-generation, customers can offset carbon emissions, reduce expenses via utility savings, and gain tax benefits in the form of credits and accelerated depreciation.

Renewable energy offers utility savings, tax benefits, and on-site REC generation. Recent legislative changes in the US, such as the Inflation Reduction Act, have made solar more attractive with a 30% investment tax credit and an additional 10% tax credit for energy communities. Measures like this help to incentivize development for the oil and gas industry.

Renewable energy projects not only contribute to ESG goals but also enhance corporate profitability, provide grid resiliency and a reduced carbon footprint.

Generating RECs on-site allows companies to meet their ESG goals independently, saving on REC procurement costs and enhancing their public focus on ESG initiatives. CARBON EMISSION OFFSET EDI is unique in the renewable energy space, not only for working with oil and gas companies, but for employing flexible solar panels in renewable energy projects. It

focuses on three primary project types for successfully offsetting carbon emissions: 1. Energy efficiency retrofits: Swift replacements, such as retrofitting light fixtures with LED bulbs, significantly reduce power consumption and utility bills. 2. Solar panels: Utilizing innovative, flexible solar panels on existing infrastructure like storage tanks and gas station canopies creates potential for significant power generation. 3. Energy storage: Integrated with solar and other generation in a microgrid, properly storing and using energy generated on site enhances reliability and protects against outages. Midstream infrastructure like storage tanks and transportation are a particular focus for hosting flexible solar panels due to the vast surface area that can be covered. Storage tanks alone represent millions of square feet of available space – and hundreds of megawatts of potential generation. Flexible panels are optimal for storage tanks as they can bend to the shape of the surface they’re attached to. The panels use a butyl adhesive to stick to the surface, making it easy and inexpensive to install, with excellent potential for ROI. EVOLVING INDUSTRY As the oil and gas industry evolves with sustainability and ESG requirements, EDI Capital assists its energy partners in efficiently participating in these changes while upholding the American energy tradition, particularly in states like Texas. EDI advocates for profitable sustainability to support and grow enduring American energy. For more information: www.edi.capital Micah Sussman, VP of development, micah@edi.capital Arthur Hoffman, VP of origination, ac@edi.capital

PAGE 48

TECHNICAL VAPOR RECOVERY

EMISSIONS REDUCTIONS, VAPOR RECOVERY AND THE ENERGY TRANSITION Cyann Fielding investigates how vapor recovery can help terminals hit green targets; and what regulations are changing product or processes, but they have had an impact on the design of the vapor recovery units (VRUs). By tightening the allowable VOC emissions, the regulations have caused VRUs to utilize larger carbon beds (to adsorb more hydrocarbons) and larger vacuum pump capacities (in order to clean the beds during regeneration more thoroughly),’ comments Zeeco’s Vasili Cuba-Garcia.

REGULATIONS ACROSS NORTH AMERICA AND THE WORLD VAPOR RECOVERY is a critical part of facility operations in the energy sector. With increasing pressure to make operations cleaner, vapor recovery can help facilities to reduce emissions and limit damage to the environment. As technology develops, the solutions are under continuous evolution to become more efficient and effective. At the same time, the industry is evolving towards the energy transition, making vapor recovery ever more important. In some regions of North America, regulations have been implemented or incentives have been introduced, to encourage the installation of vapor recovery systems for refined product terminals. These systems help capture the vapors during loading of trucks, rail cars, vessels and storage tanks. EPA REGULATIONS The USA’s Environmental Protection Agency has set standards and regulations for the tank storage industry. The team at Zeeco pinpoints these as important: • EPA-40 CFR Subpart XX – Standards of Performance for Bulk Gasoline Terminals • EPA-40 CFR 63 Subpart BBBBBB: National Emission Standards for Hazardous Air Pollutants for Source Category: Gasoline Distribution Bulk Terminals, Bulk Plants, and Pipeline Facilities

• EPA-40 CFR § 60.503 – Test methods and procedures • EPA-Method 21: Volatile Organic Compound Leaks • EPA-Method 25A: Determination of total gaseous organic concentration using a flame ionization analyzer • EPA-Method 25B: Determination of total gaseous organic concentration using a nondispersive infrared analyzer • EPA-450/2-77-026: Control of hydrocarbons from tank truck gasoline loading terminals ‘These regulations haven’t necessarily impacted or changed the vapor recovery

North America is expected to hold the largest share of the global vapor recovery unit market. ‘The United States’ EPA has established the most comprehensive hydrocarbon emissions regulation in the world,’ says Cuba-Garcia. ‘This alone provides a high demand for VRUs in the country. Currently, the EPA is working on a more stringent emission requirement, which would further increase the demand for VRUs.’ Beyond the USA, other countries are also implementing more stringent emissions regulations. Cuba-Garcia shares an example: ‘Canada is currently working on implementing their own regulation for VRUs in bulk terminals, which is expected to come out in 2024.’

VAPOR RECOVERY FOR TRUCK/RAIL Zeeco, in North America, has been involved primarily in truck/rail VRUs. These have been traditional adsorption-absorption VRUs. VRU systems require certain infrastructure and utilities to be in place to allow the process to operate. Traditional VRU designs incorporating adsorption and absorption require a liquid absorbent product flowing through the VRU for vapor recovery. ‘In some circumstances, customers want to install VRU equipment in areas where the liquid absorbent product supply infrastructure is not available,’ comments David Short, Zeeco. ‘In this case, a non-regenerative VRU design can be implemented to recover VOCs from the vapor stream. After fully adsorbing the VOCs, the activated carbon is removed from the system and replaced with new activated carbon. This solution is not as cost-effective as a traditional VRU system; however, it can meet the emissions requirement of the installation site when other solutions are not available,’ adds Short.

PAGE 49

TECHNICAL VAPOR RECOVERY ‘We expect an increase in VRU demand,’ adds Tim Egan from Zeeco. ‘This is due to other countries, such as several in Latin America, Asia, and the Middle East, starting to implement stricter environmental regulations demanding VRUs for bulk terminals.’ Most of the regulations in these countries will favor VRUs over VCUs (vapor combustion units). Natural gas is expensive in such countries, making the investment in VRUs more attractive. Also, owners/operators of bulk terminals appreciate the return on investment VRUs provide compared to VCUs (recovery versus destruction of VOCs). Another trend in the terminal market is companies taking on ESG (Environmental, Social, and Governance) initiatives, which require them to improve their overall emissions. Replacing VCUs with VRUs helps companies achieve these emission goals. PRODUCT RECOVERY, EFFICIENT PRODUCTION Hydrocarbon processing and storage facilities throughout the supply chain are seeking more effective ways to capture and mitigate VOCs, hazardous air pollutants (HAPs), odors, and other vapors generated during normal operations and maintenance activities. These emissions pose threats to health and safety, regulatory compliance, and greenhouse gas reduction targets. VRUs help to reduce the greenhouse gasses associated with the distribution of refined products, lowering the overall carbon footprint. By recovering VOCs at a rate of 1-2 gallons per 1,000 gallons loaded for gasoline, employing VRUs reduces the required production of oil. For example, if in North America there are 500 MM gallons of gasoline loaded each day, the recovered product would be in the range of 750,000 gallons/day. That is equivalent to approximately 274 MM gallons per year. ‘This is a significant volume of hydrocarbon product that can offset the yearly production demand. This ultimately will decrease the amount required for processing facilities and the emissions produced,’ says Zeeco’s David Short. For more information: www.usadebusk.com www.zeeco.com

01 Carbon Adsorption Vapor Recovery Unit in Brownsville, TX (Zeeco)

PAGE 50

CASE STUDY: DEGASSING AND VAPOR CONTROL USA DeBusk (USAD) is a specialist in controlling emissions and mitigating risks from volatile organic compounds. USAD employs techniques such as thermal oxidation and combustion, degassing vapor recovery, and carbon absorption, to achieve its results. The following case study illustrates the possibilities of best-inclass degassing and vapor control. CHALLENGE A major petroleum refiner in West Texas needed to degas two 11.58 m diameter butane storage spheres in preparation for maintenance. Emission control and turnaround time were prime concerns, as were waste generation/treatment and protecting the structural integrity of the spheres. On a previous maintenance project, the spheres had been filled with water to displace the gas and push residual vapors to a flare. Although nominally effective at removing gas, this process generated large volumes of wastewater with entrained hydrocarbons. The refiner would spend significant time and resources on wastewater treatment. Filling the vessels also added tremendous weight and unnecessary stress to the sphere’s pilons (legs). The refiner sought an alternative degassing method to reduce time and cost while minimizing safety risks. SOLUTION USAD employs a range of techniques and equipment to mitigate hazardous gases and eliminate or reduce the release of volatile organic compounds into the atmosphere. This project would use thermal oxidizers, vapor scrubber systems, and auxiliary equipment including hard piping, manifolds, high pressure regulators, ASME liquid knock-out pots, and nitrogen generators. USAD’s advanced mobile thermal oxidation units can achieve DRE (Destruction or Removal Efficiency) certifications greater than 99.98%. These units extract vapors at up to 6,000 SFCM to shorten the duration of vessel clearing. Mobile ASME scrubber systems safely and efficiently capture and neutralize HAPs (hazardous air pollutants), VOCs (volatile organic compounds), and odor-causing emissions. The USAD team set up a system that removed the gas via bottom drains and then forced vaporization within contained ASME vessels prior to combustion in the thermal oxidizers. Initially, the team used the pressure within the vessel as motive force for processing. As pressure decreases, onboard vapor blowers were used to continue processing. RESULTS Both spheres were degassed successfully, flashing off and vaporizing vessel atmospheres to ambient temperature while maintaining a vapor space under an inert gas blanket. Safety: This process was conducted in its entirety under a nitrogen blanket, which mitigated risks of combustion or fires within the space. The USAD equipment added no significant weight or stress to the sphere structure, eliminating risks of damage or structural failure. The process eliminated the need to introduce water into the system, thereby eliminating a potential waste stream that would have contained hydrocarbons and other contaminants. Speed: Both spheres were completely degassed and available for maintenance within three days. The previous procedure had taken months to complete degassing and wastewater treatment. Effectiveness: USAD thermal oxidizers achieved destruction efficiencies greater than 99.99%. The site’s flare system had a destruction of 98% (at best). The USAD system yielded substantially lower fugitive emissions than the onsite flare. Cost Savings: The process saved hundreds of thousands of dollars compared to the prior costs of wastewater treatment. Completing pre-maintenance activity sooner also reduced costs associated with downtime and lost revenue.

INTEGRATED TANK CLEANING MORE TECHNOLOGY & EMISSION CONTROLS FOR TANKS

Advances in automation, robotics, chemistry, and procedures are making aboveground storage tank cleaning safer, faster, and more cost-effective than ever before. Clean & Fast. We remove material using track-drive and magnetic vertical-drive ROVs, remote-control manway cannons, tank sweeps with continuous slurry and removal, submersible pumping systems, and more.

ONE SOURCE FORDisposal. SAFETY, SPEED Maximum Recovery. Minimum Phase separation and& COMPLIANCE treatment options use high-speed centrifuges, filter and belt presses, and Discover advantages of a single-source provider for degassing, sludge removal, material chemicalthe treatment to reclaim valuable hydrocarbons and minimize waste. processing, emission controls, and more. You’ll save time, reduce costs, and meet your toughest standards for safety and air quality. SEE THE STATE-OF-THE-ART AT ILTA BOOTH 413!

Advanced technologies for safety and savings. Coker Services | Controlled-Volume Pigging | Emission Controls | Field Services Hot Catalyst Services | Hydro Blasting | Hydro Cutting Hydro Excavation & Vacuum Services | Inert Catalyst Services | Nitrogen Services Pigging, Decoking & Filtration | Pipeline Integrity Management | Reactor Cleaning Tank Cleaning | Transportation, Storage & Transloading | Turnaround Services Unit Decontamination & Chemical Cleaning 844.243.5557 • sales@usadebusk.com • www.usadebusk.com • Follow us:

TECHNICAL CORROSION

WHAT TO DO WITH TANK BOTTOM CORROSION? Tank storage specialist John Cornell explains why tank bottom corrosion occurs and how to prevent it 01

A CORROSION professional or expert is defined by the products they have worked with, the climates they have worked in and the locations they have worked at. ‘There is a great difference in corrosion scenarios around the world and corrosion is such an important topic. The question often comes down to what to do with the corrosion? Can you live with it or must something be done,’ says John Cornell, storage tank specialist. To determine this, you must know whether the corrosion is existing or actively occurring, and whether it is underneath or inside the tank. From there, depending on where it is, there are different approaches to mitigate it. SOIL SIDE CORROSION Corrosion underneath a tank is very common for variety of reasons. ‘If you have a large tank and underneath, it somewhere there’s a patch of water and a dry spot, you have a difference. This difference is going to set up a scenario for possible corrosion. You’re going to have a cathode, you’re going to have an anode, and it’s going to begin to corrode at the anode to protect the cathode,’ explains Cornell. Any moisture present could also allow for microbial induced corrosion, due to the presence of water and resulting bacteria underneath the tank. Another reason for soil side corrosion is a difference in oxygen levels. Cornell says: ‘It is common for a tank to have a gap around its perimeter, between the foundation and the underside surface of the steel tank floor. If this area becomes oxygen enriched, you could experience PAGE 52

an area located approximately 1 m back in under the tank that is going to become different.’ Here, a thinning region can occur on the tank floor due to underside corrosion. Some operators might patch over it and the corrosion appears to be fixed as it is no longer visible. Cornell says patching over thinning areas can accelerate corrosion. TANK DESIGN Proper foundation design is important for corrosion prevention. The foundation can be prepared correctly but the issue lies in the materials they are made from. A solid foundation should be at a minimum, made from compacted soil, top coated with sand, not large gravel for example. ‘However, I have seen companies add anything, from old desk furniture to piping, into their foundations,’ says Cornell. Adding items such as these to the foundations will cause problems and has the ability to cause corrosion, which could lead to huge holes in tank floors within only three years. ‘Optimal tank designs should follow API 650 standards in the USA, but foundations are often overlooked. We must make sure the sand, if a sand pad is used, is clean and tested upon arrival for salts. These dissolved salts may lead to accelerated corrosion,’ explains Cornell. In some cases, a cathodic protection (CP) system, as per API 651, can be used and will fight against naturally occurring underside corrosion. There are also VCIs which involves the introduction of materials into the arena under the tank that eventually coats the

tanks underside and works to prevent corrosion. ‘So between CP and VCIs, there are proactive ways to reduce underside corrosion and therefore increase the life of the tank,’ says Cornell.

‘The foundation can be prepared correctly but the issue lies in the materials they are made from. A solid foundation should be compacted soil, top coated with sand.’ TOPSIDE CORROSION Topside corrosion occurs inside a tank and can occur even in tanks that are storing non-corrosive products. A person or company may have mixers installed on the tanks to keep the product well blended, but this may create ‘moving’ suspended solids which can then be broadcast along the topside of the tank floor by the mixing blades, leading to topside metal loss. ‘These suspended solids tend to follow a certain repeated pattern across a floor and will eventually cut minor preferred pathways or grooves into the topside of the tank floors. These grooves can become trenches that cut deeply into the tank floor,’ says Cornell. There are ways to prevent this, one example being the use of a diffuser plate, being placed on top of the tank floor protect the steel plates from extensive and costly floor damage.

TECHNICAL CORROSION ‘At the moment, many inspectors are assuming an original thickness of what the tank standard required at the time of supposed construction, and that is not always the best practice. In many instances, companies have had thicker materials available than were required but this substitution was not noted on the tank fabrication and construction drawings as supplied to the customer. explains Cornell.

This common practice of assuming is now resulting in many miscalculations across the storage tank industry, whether it be for oil, water or any other product being stored in an aging tank.

IMPLICATIONS IN TANK LININGS A lack of corrosion prevention leads directly to material thickness loss. ‘We could build a floor that was four inches thick and never had to be taken out of service, but that’d be costly. So we need to keep the thickness floor down to around 6 mm or quarter inch, and do what it takes to make that floor last as long as possible by reducing underside and topside corrosion,’ explains Cornell. In comparison to previous years (read more in the box below) the industry has a better idea on how to correctly use and install tank linings. However, there are still limitations to consider. Cornell says a historical study revealed that some linings that had been applied to the topside of the floor failed within seven years and resulted in the tank beginning to corrode again. ‘However, with the lining having been installed, to prevent corrosion, tank owners often don’t take their tanks out of operation to look for several years. By the time they get back into the tank it is too late,’ says Cornell. By this time, and if

a release detection system is not present, the tank could have been leaking into the soil for multiple years without any indication on the outside. Nowadays, tank owners can install much thicker linings and more abrasion resistant linings, some being described as self-repair linings – which reportedly can self-mend themselves if a scratch occurs. ‘There are a lot of good linings in the industry that we did not have 10 years ago. If our industry follows internationally accepted lining standards relating to material surface prep and application procedures, our industry could see fewer and fewer tank topside corrosion issues,’ says Cornell. SHARING KNOWLEDGE WITH THE INDUSTRY Cornell is speaking at the upcoming NISTM Woodlands event in Texas, USA, on 5-7 December 2023. He will explore how to deal with inspection of tanks and how to inspect a tank if the original thickness is unknown.

For example, if an inspector is assuming a tank was 4 mm thick when it started, but in actuality it was 5 mm, then the inspection companies are calculating a misleading past-to-present corrosion rate. The real problem is when they use this mis-calculated corrosion rate to predict remaining tank life or the number of years the tank can be safely operated. Readers should understand that this scenario may have been done in reverse and this would still be unfortunate, Cornell says: ‘I am really trying to get the industry to focus on spending a little time investigating the particular tank, asking the owner if they have any original drawings, investigating the nameplate on the tank to see if it provides information about what standards the tank was built to. Then, to stop assuming so much and just do their job to a higher level of detail.’ For more information: John Cornell will be speaking at the NISTM conference on 5-7 December in Houston, Texas, USA. Connect with him on LinkedIn John Cornell for more updates, tank training and knowledge. www.nistm.org

CORRECTLY INSTALLING TANK LININGS In 2002, Chris Bashor at the Minnesota Pollution Control Agency, conducted a study on tank linings for topside corrosion. The industry had been placing linings into tanks believing that the lining was the mitigator process for topside corrosion. His study showed that the linings were not being installed correctly and therefore had no effect on mitigating corrosion. This was down to not blasting and preparing the floor to the correct metal surface cleanliness, not bringing in air, not bringing in oils and inexperienced personnel installing the lining.

01 Placing a steel tank bottom on top of large gravel will reduce the number of contact points from the multi-millions to only hundreds of thousands, therefore increasing the potential for large underside pits to form 02 Cornell says patching over thinning areas can actually accelerate corrosion

Cornell says: ‘I saw an example when a crew that was working for a contractor unfortunately did not understand at all what the contractor required and the floor failed within 12 hours. The coating simply peeled off. They did not control the temperature inside the tank. They did not clean the floor adequately. And within hours the $300,000 floor lining began to have white bubbles forming. 12 hours later, it was almost completely gone.’ Bashore’s study showed that companies cannot just install linings and expect that they work correctly. It requires supervision and certified personnel to be installing them.

PAGE 53

STORAGE AWARDS 12th March 2024 | Rotterdam

NOMINATIONS NOW OPEN Enter the Tank Storage Awards Today!

Get involved

Hosted by

Enter tankstorageawards.com

EVENTS NISTM WOODLANDS

SPEAKER PREVIEW: NISTM WOODLANDS Ahead of the NISTM conference in December 2023, TCEQ and Pierre Legault share the highlights from their scheduled talks on aboveground storage vessel safety and inspections in remote locations

ON 5-7 DECEMBER, the tank storage industry will descend on Texas, USA, for the 16th annual national aboveground storage tank conference and trade show, run by NISTM. The conference is always full of industry experts ready to share best practices and updates in the tank storage industry.

Tank Storage Magazine is proud to be a media sponsor, and our team will be in attendance this December, so be sure to say hello at our stand. In the meantime, enjoy these insights from the Texas Commission on Environmental Quality and consultant Pierre Legault. THE ABOVEGROUND STORAGE VESSEL SAFETY PROGRAM The Texas Commission on Environmental Quality (TCEQ) has adopted new 30 Texas Administrative Code (TAC) Chapter 338, Aboveground Storage Vessel Safety (ASVS) Program, to implement the statutory changes to the Texas Water Code (TWC) made by senate bill 900, passed during the 87th legislative session.

The TCEQ regulates aboveground and underground petroleum storage tanks (PSTs) that contain or have contained a regulated substance, including the assessment and cleanup of leaking petroleum storage tanks.

contain or have contained a regulated substance, including the assessment and cleanup of leaking petroleum storage tanks (LPSTs). Furthermore, the TCEQ implements numerous state and federal air regulations to permit and control air emissions from storage tanks.

The regulations identify the safety elements that TCEQ included, and the entities regulated. Safety standards come from both federal regulations and national consensus standards. The ASVS program is intended to provide for the protection of groundwater and surface water resources in the event of an accident or natural disaster.

Owners or operators of ASVs are required by 1 September 2027 to register with the TCEQ and pay the annual registration fee. Owners or operators must certify compliance with the applicable safety standards no later than 1 September 2037 as outlined in 30 TAC Chapter 338, and then every 10 years thereafter. TCEQ will conduct on-site inspections at least once every five years to determine compliance.

Additionally, the TCEQ regulates aboveground and underground petroleum storage tanks (PSTs) that

Regulated aboveground storage vessels (ASVs) under this program are those that are made of non-earthen material, have a capacity of 21,000 gallons or more, store a regulated substance, and are located at a petrochemical plant, petroleum refinery, or bulk storage terminal. There are also specific exemptions set out in the rule.

At NISTM’s conference, TCEQ is hosting a panel discussion on the Aboveground

PAGE 55

EVENTS NISTM WOODLANDS Storage Vessel Safety Program. The panel will include six members from the commission who will discuss the requirements and deadlines for the new ASVS program. TCEQ is looking forward to attending NISTM and share the news about the brand-new ASVS program. The commission is keen to take advantage of opportunities to inform possibly impacted entities and provide advance notice so owners and operators can be prepared to comply. NISTM is a great forum for outreach for this new program as many potentially impacted entities will be in attendance. STORAGE TANK INSPECTIONS IN THE CANADIAN ARCTIC AND REMOTE LOCATIONS Pierre Legault is a consultant with experience in storage tank construction, design, project management, environmental engineering, code and regulatory expertise, and field inspections. Working with 11 different federal departments and agencies, and with several American federal agencies, Legault has acquired significant experience in dealing with engineering matters at North America’s field and corporate levels. He has conducted fieldwork in the High Arctic and other remote sites in Canada since the early 1990s. Legault now owns his own consulting firm and works with government clients to offer services such as infrastructure compliance, specialization in petroleum systems and regulatory compliance. He is a licensed engineer in seven jurisdictions, a tank operator, a certified STI SP001 inspector, a member of NFPA and IAEM.

PAGE 56

He also volunteers on 14 different standard development committees and is a senior training provider in petroleum systems and various hazardous materials. At the NISTM conference, Legault’s presentation on Storage Tank Inspections in the Canadian Arctic and Remote Locations will provide information and numerous examples of remote storage tank inspections while comparing Canadian and American regulatory and personal protection requirements. The comparison will permit a broader understanding of the differences while explaining that work in each jurisdiction has essential legislation that must be respected. Legault’s objective is to provide the audience with information gathered over the last 16 years, to the benefit of tank inspection staff. The American and Canadian regulatory frameworks differ greatly in both application and scope. Although a petroleum storage tank system is composed of equipment which is common across many parts of

‘Working in remote areas requires logistical considerations. Inspection equipment needs to be present on-site while the inspector is also present, while also ensuring that staff have accommodation, transportation, food, and PPE...’

the world, there are differences in how each country applies its regulatory based codes and standards. Storage tank inspections have many technical elements in common, with engineers, inspectors, and contractors working together to develop and carry these out. The inspections and associated work must be completed in a manner that is both compliant with the applicable standard and safe for the workers. Good technical skills and self-sufficiency are paramount. Working in remote areas also requires logistical considerations. Inspection equipment needs to be present on-site while the inspector is also present, while also ensuring that staff have accommodation, transportation, food, and PPE; all equally important. Local availability of contractors and supplies must also be considered, as there may be a requirement for product removal, cleaning, or assistance while undertaking work. Legault will showcase examples from years of inspections, such as Sable Island, Haida Gwaii, Resolute, Alert, and Hall Beach. At NISTM, Legault is hoping to make attendees understand that American and Canadian safety regulations lack harmony. He hopes to benefit the individuals that are required to be in remote settings for the first time while ensuring a safe and effective work environment. For more information: TCEQ and Pierre Legault will be speaking at the NISTM conference, held on 5-7 December 2023 at The Woodlands Waterway Marriott, Texas. www.nistm.org

EVENTS 2023/24 CALENDAR

EVENTS 2023/24 25-26 October 2023

Media Partner ASIAN DOWNSTREAM SUMMIT Singapore www.asiandownstreaminsights.com/ events/asian-downstream-summit

28-30 November 2023

Media Partner ANTWERPXL Antwerp, Belgium www.antwerpxl.com

5-7 December 2023 24-25 October 2023

Media Partner STORAGE TANK OPERATIONS, MAINTENANCE & SAFETY www.cconnection.odoo.com/event/ tankstorage

Media Partner ANNUAL GPCA CONFERENCE Qatar, Doha www.gpcaforum.com

5- 7 December 2023

24-25 October 2023

Media Partner PROCUREMENT PROCESSES FOR TANK STORAGE EQUIPMENT Dubai, United Arab Emirates www.cconnection.org/events/ tankstorage

7-9 November 2023

Media Partner HAZARDS 33 Coventry, UK www.icheme.org/training-events/ hazards-process-safety-conference

9-10 November 2023

Media Partner MED HUB DAY Port Tarragona, Spain www.porttarragona.cat

Media Partner NISTM WOODLANDS The Woodlands, Texas www.nistm.org

27-29 February 2024

Media Partner IE WEEK London, UK www.ieweek.co.uk

12-13 March 2024

Official Publication STOCEXPO Rotterdam, Netherlands Thought leaders from across the world will gather alongside exhibitors and visitors to discuss the future of the bulk storage industry. Tank Storage Magazine is the Official Publication for this event and is exclusively distributed in all delegate bags & to all visitors as they enter the show. www.stocexpo.com

12 March 2024

Official Publication GLOBAL TANK STORAGE AWARDS Rotterdam, Netherlands The Global Tank Storage Awards are designed to highlight those that excel in a range of different categories relating to terminal achievements, equipment innovations, ports and individual accomplishments. www.tankstorageawards.com

3-5 April 2024

Media Partner NISTM Orlando, Florida www.nistm.org

May 6-8 2024

Official Publication & Silver Sponsor ILTA, INTERNATIONAL OPERATING CONFERENCE & TRADE SHOW USA The ILTA International Operating Conference and Trade Show is the largest industry gathering with 4,500 liquid terminal industry professionals. Expert-driven educational sessions, networking opportunities, and the largest trade show in the industry will equip you with the tools you’ll need to succeed. www.ilta.org

PAGE 57

SINCE 1970, VALLEYTANK’S PRIORITIES ARE… safety of all personnel, protection of the environment, security and ﬁrst class service to its customers.

BULK LIQUID STORAGE TRANSLOADING FROM SHIPS TRANSLOADING FROM RAILCARS TRANSLOADING FROM TANKERS We also oﬀer special services

Port of Valleyﬁeld, St-Lawrence Seaway, West of Montreal, Canada E: management@valleytank.ca • T: +1 (450) 371-1781

valleytank.ca