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TANK STORAGE magazine september 2012

Volume No. 8 Issue No. 4

Learning from near-misses

Uncovering the systemic issues within an organisation can go some way to preventing a major incident

On a roll

NuStar could double its earnings in the next few years. Here the company divulges the secrets of its success

Small is beautiful

The resounding message from this year’s ILTA is that compact, energy-dense fuels are here to stay

Regional focus: tank storage in Canada


PAGE HEADER

xxx

TA N K S T O R A G E • June 2008


September 2012 • TA N K S T O R A G E

contents

CONTENTS

september 2012 Volume 8 issue 4 Horseshoe Media Ltd Marshall House 124 Middleton Road, Morden, Surrey SM4 6RW, UK www.tankstoragemag.com

MANAGING DIRECTOR Peter Patterson Tel: +44(0)20 8648 7082 peter@horseshoemedia.com Associate publisher & editor Margaret Dunn Tel: +44 (0)20 8687 4126 margaret@tankstoragemag.com STAFF WRITER Keeley Downey Tel: +44 (0)20 8687 4183 keeley@horseshoemedia.com Advertising Sales manager David Kelly Tel: +44 (0)20 8687 4139 david@tankstoragemag.com South American sales representative Roberto Bieler +55 21 3268 2553 +55 21 9465 2553 rbieler@farbitec.com PRODUCTION Alison Balmer Tel: +44 (0) 1673 876143 alisonbalmer@btconnect.com SUBSCRIPTION RATES £130/€185/$240 for five issues per year. Contact: Lisa Lee Tel: +44 (0)20 8687 4160 Fax: +44 (0)20 8687 4130 marketing@horseshoemedia.com No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Tank Storage are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher. ISSN 1750-841X

2 Comment 4 Terminal news 39 Technology news 52 Incident update 54 NuStar: on a roll

NuStar could potentially double its earnings in the next few years. Here Danny Oliver, the company’s senior VP of marketing and business development, tells Tank Storage magazine the secrets of its success

54 Tank terminal update – Canada 58 Canada’s oil output to double by 2030

Brian Dunn tracks the growth in oil sands production as well as the latest additions to pipeline infrastructure in a bid to determine where future potential lies for the region’s terminal operators

63 Evaluating and learning from near-misses

Companies cannot afford to wait for a major mechanical integrity failure to occur in order to uncover the systemic issues within the organisation that lead to the potential for such a major incident

67 Combining accuracy with safety

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73

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The release of API 2350’s fourth edition serves as a reminder that preventing tank overfills and spills by using appropriate technology is something that cannot be ignored

Mitigating corrosion

Tests carried out on tanks with and without a new method of mitigating corrosion on the underside of a tank roof indicate that service life can be increased from six to 30 years

Maintaining ‘U’ and ‘L’ shaped drain segments

As part of an investigation into incidents in which drain line segments failed, Kuwait Oil Company found that infrequent use of certain shaped drain pipes were to blame

Avoiding pitfalls with floating roof seals

Good data, proactive planning and collaboration with a seal provider can help tank owners and operators avoid unnecessary costs

81 82

Dulux improves storage inventory management Down but not out

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86

How proper environmental, health and safety management can set a clear path forward for obsolete assets and ensure the best return on an investment

The not so sweet smell of success

Testing for the inclusion of hydrogen sulphide in the ISO 8217 marine fuel standard has taken two years to achieve. Now it is in place, what is the best way to test for its presence?

Removing the risk of uncertainty

Advanced tank gauging technologies reduce costs for improving terminal efficiency and safety

92 95

Don’t let the ground dictate tank capacity Making life easier

A simple measure such as upgrading a terminal’s valves cannot only make an engineer’s working day safer, it can also save time and money

97 TEEX announces revision to fire fighting training 99 Africa’s potential

Storage facilities in locations like Liberia need a lot of work to bring them up to date by companies not afraid of the challenge

101 Sometimes simple really is better

API 545 has devoted much time and study to the subject of lightning protection. Whereas there are many options available to protect a tank, often a reliable, low-cost option may offer the best solution

103 ‘Rubbish in equals rubbish out’

The quality of any tank assessment depends on the accuracy of measurements as well as the probability of detection

106 Upgrading to face a diverse future 108 Small is beautiful

The ILTA held its 32nd Annual International Operating Conference and Trade Show on 21-23 May in Houston, Texas. Close to 3,500 people attended the event and over 300 companies exhibited, the most in the history of the show

112 Tank Storage Canada preview 117 TSA preview 122 A meeting by the river 123 Events listing Ad index

TANK STORAGE magazine september 2012 Volume No. 8 Issue No. 4

Learning from near-misses

Uncovering the systemic issues within an organisation can go some way to preventing a major incident

On a roll

NuStar could double its earnings in the next few years. Here the company divulges the secrets of its success

Small is beautiful

The resounding message from this year’s ILTA is that compact, energy-dense fuels are here to stay

Regional focus: tank storage in Canada

Front cover courtesy of L&J Engineering

1


COMMENT

TA N K S T O R A G E • September 2012

One thing leads to another Any incident in the oil industry is detrimental to the sector’s reputation as a whole. So anything you can learn from Tank Storage magazine regarding process safety, avoiding incidents or reducing risk can only be a good thing

P Margaret Dunn Associate publisher

2

rocess safety made headlines once again this month as a fire raged at a Venezuelan oil refinery for three days, killing nearly 50 people. The world’s deadliest refinery accident in 15 years is the last thing the industry needs, especially as it follows closely on from the destructive blaze at Chevron’s refinery in Richmond, California at the beginning of August. The incident has thrown a spotlight on the performance of Venezuela’s refineries which, for the last decade, have suffered frequent accidents and unplanned outages. Amuay is among the world’s largest refineries and is part of the Paraguana Refining Centre, which also includes the adjacent Cardon refinery. Together, the refineries process about 900,000 barrels of crude per day and 200,000 barrels of petrol. At least two dozen incidents have been reported at the refinery complex since 2003, including power outages, fires and explosions. In January 2009, for example, a fire at the Cardon refinery injured at least seven firefighters and refinery workers. The fact that so many incidents have been reported gives an indication that this disaster may have been preventable. Within this issue of Tank Storage magazine three industry experts have come together to discuss how

many major failures are often preceded by a series of smaller incidents. Before Buncefield, for example, there were a number of incidents prior to the major failure. The ATG servogauge had stuck 14 times in the three months prior to the explosion, but the root cause of the ’sticking’ was never properly investigated. As another example The Chemical Safety Board, in its investigation of the BP Texas City Refinery explosion in 2005, found deficiencies with the incident investigation system as one of the root causes. In the 10 years prior to the 2005 explosion, there was documented evidence of eight serious blowdown drum incidents. The authors go on to explain that the API is drafting a new recommended practice, API RP 585 Pressure Equipment Integrity Incident Investigation, to highlight the value of investigating low and medium consequence pressure equipment integrity incidents. In light of this latest explosion this is well worth a read. Sticking with the subject of refineries, the sale of the UK’s Coryton refinery to Shell UK, Vopak and Greenergy also made major news over the summer. The existing facility will undergo major infrastructural changes to create a state-of-the-art import and distribution

terminal and will become the UK’s first deepwater fuel import terminal. The new terminal will boast an initial handling capacity of 500,000m3. However, plans are in place to enable the facility to double its handling capacity in the future to 1 million m3. The acquisition itself is still under some debate however, as the Office of Fair Trading has opened an enquiry to determine whether the new creation would result in a substantial lessening of competition within any market or markets in the UK. The subject of refinery closures and their impact on the market is one that will be covered extensively at the upcoming Tank Storage Conference in Calgary in October. Storage has a key role to play in oil trade flows and in helping to address regional imbalances between refinery supply and demand. Any changes to refineries will likely lead to new opportunities for storage operators, so they need to make sure they’re aware of what is, and what is about to happen. As usual Tank Storage magazine will be the official media partner for this event, so we look forward to welcoming you once again to Calgary.

Best wishes, Margaret


January 2012 • TA N K S T O R A G E

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TERMINAL NEWS

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TA N K S T O R A G E • September 2012

KMP to sell assets for El Paso transaction Kinder Morgan Energy Partners (KMP), a pipeline transportation and energy storage company, has entered into a purchase and sale agreement with oil company Tallgrass Energy Partners in order to obtain regulatory approval of its acquisition of El Paso.

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Chairman and CEO Richard Kinder says: ‘As I previously stated, we would prefer to keep all of these assets, but we anticipated divestiture of certain assets in the Rockies would be necessary to obtain Federal Trade Commission (FTC) approval.’ As part of the agreement, Tallgrass will purchase Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, the Casper Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, and the company’s 50% interest in the Rockies Express Pipeline for $1.8 billion (€1.4 billion) in cash. The agreement, which is expected to close by the end of this year subject to FTC approval, also includes the proportionate amount of Rockies Express Pipeline

debt, which is equivalent to a value of $3.3 billion. Kinder Morgan announced earlier this year that it had reached an agreement with the FTC to divest its assets in the Rockies in order to obtain regulatory approval of its acquisition of El Paso, which closed in May. Barclays and Citi acted as financial advisors to Kinder Morgan on this transaction. Tallgrass Energy Partners CEO David Dehaemers Jr. says: ‘We’re excited about the opportunity to acquire these premier midstream assets. We look forward to working with a talented group of Kinder Morgan employees and will leverage their experience as we continue the high level of operational performance of these assets, work to expand the asset base and grow the company.’ ‘The conversion of the Pony Express Pipeline portion of KMIGT into oil service, the seamless transitioning of its gas customers, and placing it in service during the second half of 2014 will be a significant focus for the near-term growth. In addition, we will be exploring some promising growth projects on the east end of Rockies Express to maximise the potential of this stateof-the-art pipeline.’ n

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KMP is selling its 50% stake in the Rockies Express Pipeline for $1.8 billion 4


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

CAO joint venture abandons tank terminal project Asia’s largest buyer of jet fuel, China Aviation Oil (CAO), has scrapped plans to build an oil storage terminal in Malaysia, Reuters reports. In a partnership with Malaysian company Centralised Terminals, part of MISC and Dialog Group, CAO announced

in October 2011 that it planned to construct a 380,000m3 storage tank terminal at Tanjung Langsat Port in Johor state by the end of 2013. CAO said at the time that all the available capacity would be leased and used to store middle distillates and fuel oil for a minimum of seven years. However, as the project is a

greenfield site, the joint venture has now mutually decided to terminate the agreement saying the terminal would have taken a longer time than originally thought to complete. CAO is continuing to penetrate new regions as part of its four-year expansion plan; it recently purchased storage space in both Singapore and South Korea. n

Sunoco Logistics Partners to move forward with Permian Express Phase I project Sunoco Logistics Partners has received enough binding commitments to proceed with Phase I of its USbased Permian Express project that will enable the transportation of West Texas crude oil to markets in the Gulf Coast.

Permian Express Phase I will provide a continuous pipeline service from Wichita Falls in Texas to the Nederland/ Beaumont markets. At Wichita Falls, a connection from Basin Pipeline will be established. Although sufficient commitments have been received for this project to move forward, the binding

open season will continue until 6 September this year. Due to the use of existing assets, the capacity to transport approximately 90,000 barrels per day to Nederland/Beaumont will be operational by the beginning of 2013. ‘With the use of pipe already in the ground,

Permian Express Phase I offers West Texas producers and Gulf Coast refiners a fast and cost-efficient solution with tremendous operational flexibility,’ Sunoco Logistics president and CEO Michael Hennigan says. ‘We look forward to having this project online in the first quarter of 2013.’ n

5


TERMINAL NEWS

TA N K S T O R A G E • September 2012

LBC to increase Antwerp terminal capacity by end of 2012 Bulk liquid storage solutions provider LBC Tank Terminals is to increase capacity at its Antwerp terminal by 41,000m3 to meet the market’s growing demand. LBC expects its new tanks to be online by the end of this year. The expansion project includes the construction of a new tank pit with seven mild steel tanks ranging in size from 5,000-6,000m3. Upon completion the terminal, which is ISO 9001:2008, ISO 14001:2004 and CDI-T certified, will be able to receive and transport products via water, road and rail, ‘offering customers complete logistical flexibility’, LBC said in a statement. All of the new tanks will have dedicated product lines connected to a 568m quay that is capable of serving two sea-going vessels and three

6

barges simultaneously, 24/7. In addition, the new tank pit will be fitted with a dedicated truck loading station and weighbridge to allow for simultaneous truck loading, a move that will improve loading/ unloading cycle times. LBC has already broken ground on the expansion project. It says the first 12,000m3 of storage will be complete on 1 September this year, with the remaining capacity expected to be operational by 15 November 2012. Once completed, LBC’s newly expanded Antwerp terminal will have a storage capacity of 270,000m3, an 18% increase. Today, LBC Tank Terminals’ storage capacity totals 2.8 million m3, spanning across its terminals located in Europe, the US and China. The company provides storage and handling solutions for a range of liquid products, including petroleum products, base oils, vegetable oils, mineral oil and chemicals. n

LBC Tank Terminals is adding seven new storage tanks to its terminal in Antwerp


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

Inver Energy awards operational contract to PX Group In the UK, fuel and energy solutions provider Inver Energy has awarded services specialist PX Group with a multi-million pound contract to operate, manage and maintain its 70-million-litre terminal in Cardiff, Wales. The terminal exported 300 million litres of products in 2011, including petrol, diesel, heavy fuel, kerosene and additives. Operational 24/7, it comprises 26 storage tanks; Inver Energy has longterm storage and handling contracts with both Mabanaft and Greenergy. The facility can receive fuel via road, rail and sea. The long-term deal will enable Inver Energy to focus on fuel sales through the 50-year-old terminal. ‘By outsourcing operations we are able to free ourselves from day to day management and focus on our core business,’ says Tony Wilson, commercial director of Inver Energy. The contract has also meant the transfer of eight employees to the Teesside-based PX Group, which will provide consultancy and support services as required.

PX Group will operate, manage and maintain Inver Energy’s Cardiff-based terminal

‘We are looking forward to further demonstrating our expertise on site by helping Inver Energy to maximise valve and control costs,’ Ian Clifford, operations director with PX, says. The PX Group is now the named duty

holder at the plant, which became a COMAH site in 2008 and underwent significant improvement last year. The group operates fuel storage sites across England and is also expanding into the Middle East. n

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

Genesis terminal begins service, increasing traffic along AGR Midstream energy company Genesis Energy has finished building its crude oil unloading terminal in Florida, US and the terminal is now in service. The facility is designed to receive approximately 100-car unit trains of crude oil from a number of shale regions across the US and Canada,

which it will via the Alabama and Gulf Railway (AGR). RailAmerica, part of the AGR, is serving the new terminal. Following its route from the shale regions to the terminal via the AGR, the crude oil will then be off-loaded into storage tanks before it is inserted into Genesis’ existing transportation pipeline for direct and indirect (through third-party common carriers) delivery to

customers in the Southeast. With rail traffic predicted to increase following the completion of Genesis’ new terminal, RailAmerica has expanded the AGR infrastructure in order to support this rise in capacity. ‘Many industries, including the energy industry, have a growing need for efficient railbased distribution terminals. There are a number of advantages for moving

raw materials and finished products by rail versus other modes of transportation. The environmental benefits, energy-cost savings and overall efficiency of rail transportation are all compelling drivers of continued development on our short-line railroads like AGR,’ Gary Lewis, chief commercial officer of RailAmerica, was reported to have said. n

Punj Lloyd awarded crude oil storage contract In India, the Ministry of Petroleum and Natural Gas has awarded Punj Lloyd, an integrated design, engineering, procurement, construction and project management services provider, an Rs330 crore contract for the construction of a planned oil storage cavern in Mangalore, the Economic Times reports.

*

The Mangalore-based underground facility, which will be located close to Mangalore Refinery and Petrochemicals, will feature two 900m-long caverns with a total storage capacity of 1.5 million tonnes of crude oil. The project is slated for completion in just less than 30 months’ time. Punj Lloyd’s contract includes the engineering, procurement, construction and commissioning of infrastructure related to receipt and delivery of crude oil,

metering, heating, wastewater treatment and flaring, among other things. Speaking about the contract, Punj Lloyd’s director P K Gupta was quoted as saying: ‘We have constructed over 300 tanks globally, with over 8 million m3 of storage capacity. We are proud to be a part of this strategic initiative of the Government of India to build reserves of crude oil at important locations, which will feed a cluster of refineries.’ n

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September 2012 • TA N K S T O R A G E

Partnership for Vitol and LPC Vitol Group’s US subsidiary Vitol Inc. will now operate as LPC Crude Oil Marketing after it formed a partnership with LPC Crude Oil and acquired 50% of the company. LPC Crude Oil, focused on gathering, marketing and transporting oil condensate in the Permian Basin, will continue to operate as a separate entity focusing on its core customer base. The partnership will enable both companies to extend their customer reach in the Permian Basin. ‘Vitol is pleased to be joining efforts with the team

at LPC Crude Oil to increase both companies efforts to service Permian Basin crude oil producers,’ says Mike Loya, Vitol’s president. ‘LPC’s president and his team have deep roots in the region and we look forward to broadening our reach and helping us to pursue growth opportunities there.’ Describing Vitol as an ‘industry leader’, Steve Mills, president of LPC, says: ‘Vitol brings both the financial heft and expanding terminalling and logistics presence in the Permian to help us grow rapidly while still maintaining the small-company atmosphere that allows us to serve our customers so well.’ n

BTT receives AEO certification Rotterdam, the Netherlands-based Botlek Tank Terminal (BTT) is now AEO (authorised economic operator) certified. The Dutch customs authorities granted the AEO certificate on 29 June. The certification acknowledges BTT as a reliable partner in the

field of customs and international trade. The AEO certificate is recognised throughout Europe, granted to companies with a proven track record, in addition to those that meet specific criteria relating to quality systems, financial solvency and automation. BTT says the AEO certificate will enable it to continue the process of optimising the services it provides to its customers. n

New terminal for storage-strapped Kenya Sudan-headquartered energy company Petrocity Energy is building a new 1.5 billion Kenyan shilling (€14.2 million) oil storage facility in Konza, Kenya. The finished terminal will be able to store up to 150 million litres of petroleum products throughout its 12 storage tanks. The terminal will be

constructed in phases; phase one is expected to comprise 40 million litres of storage capacity. The terminal will serve the Nairobi region of Kenya, helping to overcome the country’s shortage of oil storage facilities. The strategic location will improve supply times for the oil marketers and could also mean reduced fuel prices for the consumer if the cost savings are passed on. n

TERMINAL NEWS

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

NuStar to build ethanol Pakistan State Oil and Kuwait Petroleum to form JV storage facility and unit train Pakistan State Oil and Kuwait Petroleum have agreed to form a joint venture to increase Pakistan’s oil storage capacity. The two companies will invest $350 million (€284 million) in developing additional infrastructure at Hub. According to Senator Muhammad Yousaf Baloch, the two companies have entered into an initial agreement, with a formal agreement due to be signed soon. Oil will be imported to the new storage site via two large ships secured by Pakistan State Oil. Small

vessels are normally used to ship crude oil into the country via Port Qasim, however, this creates congestion and one small hold-up can affect Pakistan’s entire oil supply chain. Much of the country’s crude oil is stored at Karachi Port but Baloch believes the new tanks will provide Pakistan with an alternative location. Pakistan State Oil has also revealed that it is looking to erect an oil refinery in Khyber Pakhtunkhwa (KP) that will handle crude oil produced in the area. ‘We will also be able to export oil to Afghanistan from the refinery planned in KP,’ Baloch is reported to have said. n

NuStar and biofuel supply chain company Eco-Energy Holdings are to build an ethanol storage facility complete with unit train infrastructure after forming a partnership.

To be located at NuStar’s Dumfries site in Virginia, US, the facility will benefit the northern Virginia and Washington DC markets. It will comprise ethanol unloading, storage and truck loading solutions. The terminal will be able to store around 150,000 barrels of ethanol, with a 400,000 barrel-a-month distribution capacity. The unit train facility will be built to receive up to 96 rail car unit trains

via CSX Transportation. Operations at the new facility are slated to begin in the third quarter of 2013, with each company covering its own development, construction and refurbishment investments. Gwaine Ton, Eco-Energy’s CFO and COO, was reported to have said: ‘This is a large and growing market and this project reflects how multiple partners (EcoEnergy, NuStar and CSX) can work together to develop a long-term supply chain solution that benefits biofuel producers and end users. The site will be open for utilisation by both producers and end users seeking to effectively distribute biofuels in the region.’ n

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TERMINAL NEWS

September 2012 • TA N K S T O R A G E

Westway Group’s Q2 financial results up 6% Westway Group’s consolidated adjusted EBITDA rose by 6% to $10.9 million (€8.8 million) for the second quarter of 2012, compared to $10.2 million for the second quarter of 2011. For the six months ended 30 June 2012, the company reported a 3% increase in consolidated adjusted EBITDA to $22.9 million. This is higher than the $22.2 million recognised for the first six months of 2011. Additionally, the company recognised a net income of $4.2 million during the first six months of 2012, an increase of 9% over $3.9 million during the first six months of 2011. By 30 June 2012 Westway’s total bulk liquid storage capacity had increased to 368 million gallons, up from the 349 million gallons in place at the end of Q2 2011.

At its Amsterdam terminal in the Netherlands, Westway finished building the remaining four tanks of a nine-tank project at the beginning of 2012, adding 1.9 million gallons of storage capacity to its total. All of the nine tanks were operational and began generating revenue in the second quarter of this year. In its bulk liquid storage business, Westway says a number of construction projects had been completed or were underway during this year’s second quarter: • The company finalised the construction of a 1.5 million gallon tank at its Jacksonville, Florida terminal at the end of the second quarter of 2012 • Westway is still continuing with the expansion of its Houston 1 terminal in Texas, adding an additional 6 million gallons of storage capacity. The expansion also includes three

new dock lines and associated infrastructure for the in- and outbound marine and land traffic. Fifty percent of this tankage will be leased at the end of this year, with the remaining capacity slated for completion by Q4 2012. • Westway is also expanding its Houston 2, Texas terminal, adding 2.5 million gallons of storage capacity at the site. This expansion project could be finished ahead of schedule by the third quarter later this year. Half of this additional capacity is already under a lease and has been generating revenue since June 2012 • Construction is continuing on a new 3 million gallon tank at the company’s Port Allen terminal in Los Angeles. The tank is scheduled for completion in the fourth quarter of 2012 and is already under a long-term, 10-year agreement. n

BTT plans major expansion Botlek Tank Terminal (BTT) is to increase its storage capacity at the Port of Rotterdam by 550,000m3 with a five-hectare site expansion. The port signed a contract with a construction consortium to expand the BTT site on 3 July. The five hectares of land will be acquired through a two-phase land reclamation over a period of 21 months. The whole site is expected

to be handed over by mid-2014, when BTT will begin building its new liquid bulk storage tanks. This project will increase capacity from 200,000m3 to 750,000m3. In addition, a new train loading station will be constructed and the terminal will be connected to the European pipeline system for aviation fuel. BTT today features 34 storage tanks which are used to store 130,000m3 of transport fuels and 70,000m3 of edible oils and biodiesel. n

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BTT will break ground on its new 550,000m3 capacity in 2014 11


TERMINAL NEWS

TA N K S T O R A G E • September 2012

Odfjell acknowledges the ‘concerns’ it caused and suspends MD Norway’s tank storage company Odfjell Terminal Rotterdam (OTR) has apologised to customers storing products at its tank terminal after they had been taken out of service due to safety concerns. An inspection found that half of Odfjell’s tanks located at the Port of Rotterdam are at risk of leaks and breach safety measures, with the tankage company given until August to rectify personnel training and begin complying with safety standards. In light of these findings, OTR met with the authorities Milieudienst Rijnmond (Environmental Protection Agency), Inspectie SZW and the Fire Brigade where it presented a plan for addressing the situation. The plan ordered a controlled safety shutdown of the whole terminal, which was completed after the site’s fire fighting

equipment was tested. The terminal’s shutdown means it will receive no deliveries via truck, rail, barge or ships until the fire equipment, including the cooling and extinguishing systems on over 140 storage tanks with carbon steel pipelines, has been tested and replaced. Maintenance will also be carried out on other parts of the tanks and Odfjell ensures that all its tanks at OTR will be in full compliance with legislation and regulations, in addition to the PGS 29 guideline – the guideline for full aboveground tank installation in which flammable liquids are stored. In a statement, Odfjell said: ‘We regret the concerns that we have caused in the local community and we hope that this safety shutdown and plan going forward will put the minds at ease. Odfjell is determined to improve the integrity of the terminal in order to ensure safe operations.’

Odfjell ordered a controlled safety shutdown on its Rotterdam terminal

Laurence Odfjell, chairman of the Odfjell board was reported as saying: ‘The current situation at OTR does not reflect the values of Odfjell. Our commitment is to do whatever is necessary to bring OTR up to industry standards.’ With this in mind, the company suspended its OTR MD Geert Eijsink on 31 July with immediate effect.

Alex de Bonth has been appointed as interim MD of OTR for the time being. De Bonth will report to Ake Gregertsen, Odfjell Terminals’ interim president, who says: ‘Odfjell is determined to improve integrity of the terminal in order to ensure safe operations. It is our commitment to do whatever is necessary to bring OTR back up to industry standards.’ n

Aegean Marine Petroleum and Meroil sign agreement International marine fuel logistics company Aegean Marine Petroleum Network has secured fuel storage capacity at the Port of Barcelona after it signed a definitive agreement with Meroil – a Barcelona, Spainbased oil and energy logistics company. The storage capacity is located at Meroil’s Spanish coastline terminal for petroleum products in the Port of Barcelona. Here, Aegean will use approximately 50,000m3

of capacity. It also plans to provide retail bunkering services to all major shipping sectors and key cruise lines. Aegean is looking to commence its supply operations in Barcelona in the beginning of 2013. ‘We are excited to expand our global presence by establishing operations in Barcelona. This new and attractive market provides us with growth opportunities as we seek to increase the utilisation of our large and modern delivery fleet following the completion of our new build programme earlier this year,’ says Aegean president E. Nikolas Tavlarios. ‘The Port of Barcelona is ideally located in the West Mediterranean and is poised for significant growth. n

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TERMINAL NEWS

September 2012 • TA N K S T O R A G E

Stolt-Nielsen to buy storage terminal in London Stolt-Nielsen will acquire a bulk liquid storage terminal in London, UK after it reached an agreement in July. The terminal, located in Dagenham’s Port of London on 9.4 hectares of land, comprises 195 tanks with

a total storage capacity of 134,000m3. It also features a jetty and 9.3m draft. In addition to bulk liquid storage services, the terminal also offers blending, warehousing, drumming and bulk container filling, laboratory services, dilution and product heating. ‘The terminal – our first in the UK – joins Stolthaven’s growing global network of

bulk liquid storage facilities,’ says Walter Wattenbergh, Stolthaven Terminals president. ‘The Dagenham terminal gives us a foothold in the UK market and will provide added support to the Stolt Tankers’ inter-European coastal fleet. Our initial plans include an immediate upgrade programme, with the decommissioning of

several old tanks and the construction of new ones.’ The acquisition is subject to the completion of a number of conditions, including the transfer of licenses and permits and the receipt of necessary approvals to operate the facility. It is expected to close in Stolt-Nielsen’s fourth quarter of this year. n

Greenergy acquires Teesside terminal assets from Petroplus UK-based petrol and diesel supplier Greenergy has acquired the assets at a Teesside terminal formerly owned by Petroplus Refining Teesside. Petroplus stored diesel at the Seal Sands facility and used the site as a supply location before operations ceased when it went into administration earlier this year. It also stores products at the nearby Vopak terminal and supplies customers from there, having invested in fuel production, storage and distributions facilities.

Greenergy purchased the assets from Petroplus’ administrators, PwC. Andrew Owens, Greenergy CEO says: ‘The strategic infrastructure investment follows Greenergy’s recent acquisition of assets at the Coryton refinery in a joint venture with Vopak and Shell. The northeast is an important hub in our UK fuel infrastructure platform and an area where we have significant sales volume. ‘We will continue to manufacture fuel and supply our customers from the Vopak facility. Once it has been developed, this new site will be integrated into our existing northeast

Buckeye buys liquid storage terminal in New York Harbor Buckeye Partners has completed the acquisition of Chevron’s New Jersey-based marine terminal. Buckeye bought the facility, which stores liquid petroleum products, for $260 million (€212 million) in cash. Chevron will continue to be a key customer at the terminal under multi-year storage and throughput commitments. With more than 4 million barrels of storage capacity, the terminal raises Buckeye’s total liquid petroleum storage capacity to over 68 million barrels (6%). However, there is room for future expansion projects at the site as it has ‘significant underdeveloped land available’. The terminal, which features four docks and can be accessed via pipeline, rail or truck, is located in New York Harbor on approximately 250 acres of land. This is an

advantageous acquisition for Buckeye as its Linden complex is based just six miles away. ‘We expect its [the facility] integration into our network to proceed quickly and we intend to initiate our planned commercialisation activities immediately,’ says Buckeye Partners’ president and CEO Clark Smith. Smith also expects the terminal will ‘provide Buckeye with security and diversity of product supply by directly linking our domestic pipeline and terminal network to an owned and operated marine facility through a new 16” pipeline to be built to our Linden complex’. He adds: ‘This will provide Buckeye with direct access to international and US Gulf Coast petroleum products imports. The facility also can serve as a link between our domestic assets and our BORCO facility in the Bahamas.’ n

system to give additional product and manufacturing capability.’ Greenergy is currently working on developing the now closed site. Plans for this development include building a new rail head, which will make the Teesside terminal a core part of the company’s rail distribution network. The construction would also allow Greenergy to transport fuel products from Teesside to other UK locations via rail rather than by road or ship. Currently 20 staff are working at the site and will remain there through the development planning stages. n

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

Tundra adds storage capacity to Cromer terminal In Canada, crude oil company Tundra Energy Marketing is increasing capacity at its 70,000-barrel oil storage terminal in Cromer, Manitoba with the addition of 410,000 barrels. The expansion includes the construction of two 205,000 barrel storage tanks, for which site preparation is currently underway. Building work is expected to

continue for around 15 months, with both tanks due to be operational by the end of 2013. Tundra Energy Marketing president Bryan Lankester described the project as a ‘major investment’. He was quoted as saying: ‘We are pleased to have received regulatory and board approval to proceed. It [the added tankage] will provide us with enormous flexibility during times of volatile oil price behaviour. It will allow us to manage in a variety of supply-demand environments.’ n

PBF Energy to expand rail offloading capacity In a move that will expand its shipments of crude oil via rail, North American independent refiner PBF Energy is expanding its rail offloading capacity. PBF Energy can currently rail 20,000 barrels per day of Western Canadian Heavy and Bakken crude from its 190,000 bpd Delaware City Refinery into the city of Delware. However, work is underway to double this offloading capacity to more than 40,000 bpd by September 2012 and 110,000 plus bpd by the beginning of next year. ‘We have been expanding our onsite rail facilities to import advantaged crudes from Western Canada and the Midwest,’ explains Herman Seedorf, manager of the Delaware City Refinery. ‘Delaware City is the only PADD 1 refinery with sour crude

coking capability that can run lowercost, Western Canadian Heavy crude oil, giving us a competitive edge. We are also keeping our options open by barging Bakken from regional thirdparty terminals into Delaware City and Paulsboro, backing out more expensive Brent-based crudes.’ PBF CEO Tom Nimbley notes: ‘These new crude fields in the US and Canada are game changers for our east coast refineries. We are the sole refiner in PADD 1 with on-site rail discharging capability. To ensure consistency of supply, we have committed to lease a significant number of coiled and non-coiled tank cars. ‘We believe that certain domestic and Canadian crudes will continue to have takeaway capacity limitations,’ Nimbley continues, ‘so rail delivery of crude oil into PADD 1 should remain viable for some period of time.’ n

Town fined for incorrectly labelled storage tanks Cairo, based in New York’s Greene County, has been fined by the state after incorrect markings were found on two fuel storage tanks. This led to the state Department of Environmental Conservation imposing a $2,400 (€1,950) fine, for which town supervisor Ted Banta signed a consent form. The state found ports on two fuel storage tanks – located on 14

land belonging to Cairo – to be improperly colour-coded last year. In addition, another tank lacked the proper means of preventing spills and a valve was missing, according to the official document. The department also claimed Cairo removed a storage tank without making state officials aware. The highway department for Cairo says it is displeased with the fine, which was initially set at around $3,200, claiming it was a small oversight on their part. n

news in brief CAO leases storage tanks from Vopak Asian aviation fuel company China Aviation Oil (CAO) is thought to be renting storage space from Vopak, Reuters reports. It is believed that CAO leased the tankage capacity at Vopak Terminal, Singapore in the first half of this year, where it is storing middle distillates. It is not known how much storage space CAO is utilising, but it is believed to be around 300,000 barrels.

ETT3 opens Rotterdam-based Euro Tank Terminal has officially opened its ETT3 facility and is now able to handle low-flash product. ETT3 comprises 10 new tanks, which are capable of storing jet fuel, methanol and gasoil/naphtha. The terminal has direct connections to the NATO pipeline system, and truck and rail connections are anticipated soon.

Murex and Cetane sign agreement Oil marketer and distributer Murex and renewable energy company Cetane Energy have signed an agreement to expand Cetane Energy’s Carlsbad, New Mexico-based facility. Under the agreement, a transloading facility will be built at the site, able to receive oil unit trains of up to 110 railcars. A new tank for the storage of crude oil is also planned. The expansion project, coupled with the facility’s strategic location, will provide another outlet for Murex’s products. The agreement will give Murex exclusive access to Cetane’s unit trains and facilities.


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

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The new

TERMINAL NEWS

TA N K S T O R A G E • September 2012

Tank Storage magazine

iPhone App

We’re pleased to announce that you can now view all the latest tank terminal news by downloading our FREE Tank Storage news app for iPhone. Updated DAILY, our news app allows you to follow the very latest happenings in the industry - wherever you are in the world. So why not give it a go and make sure you’re the first to learn about the latest incidents, expansions, openings and financial data in the tank terminal industry. Just scan the QR code on this page, go to the iTunes store to download or simply follow the link from http://www.tankstoragemag.com/app.php. To submit your news story (please note we do not publish supplier news) please contact margaret@tankstoragemag.com 16


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

Shell plans oil import terminal in the Philippines Philippines-based Pilipinas Shell Petroleum is looking at the viability of setting up an oil terminal in the southern part of the country. It would be strategically positioned for shipment of products, such as those coming from Singapore. The facility may help stabilise prices in the targeted areas because it could pare logistics cost in the transport of products. Shell has been investing heavily in the Philippines recently. This is the third project in the country, following its $1.2 billion (€1 billion) worth of investments in a proposed LNG terminal and a Tabangao refinery upgrade. This is in order that the refinery can comply to Euro IV fuel standards, which the law mandates to be rolled out in the market by 2016. Shell has also announced a $1 billion upstream investment for the Malampaya gas field. n

SOCAR Aurora breaks ground on phase two of Fujairah Terminal An additional 10 tanks are to be added to the Fujairah Terminal in the UAE as independent terminal operator SOCAR Aurora Fujairah Terminal FZC has broken ground on phase two of the project. Under the second phase of the project, 235,000m3 of storage tanks will be built at a cost of $61 million (€48.5 million), which is being supplied by Apicorp and the National Bank of Fujairah. Construction work on phase one has finished and the tanks, with a total storage capacity of 115,000m3, were put into operation in March this year. Construction of phase two is now underway and is scheduled for completion by Q4 2013. Phase three consists of

seven new tanks capable of storing a combined 295,000m3. SOCAR Aurora is planning to begin tendering for the third phase shortly, with completion scheduled for 2014. Phases one and two of the terminal have already been let, with SOCAR Aurora currently in talks with parties interested in letting the remaining capacity at the facility. The complete terminal will feature 22 tanks capable of storing 645,000m3 of product, including fuel oils, gasoils and middle distillates including diesel, gasoil and jet kerosene. Tankto-tank and in-line blending facilities will also be built. SOCAR Aurora Fujairah is a JV between SOCAR, the State Oil Company of Azerbaijan, Aurora Progress, the Swiss-based commodity trading house and the government of Fujairah. n

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

Blue Dolphin may acquire redundant refinery A shut down refinery in Ingleside, Texas could resume operations after independent energy company Blue Dolphin Energy purchased a 180-day option to acquire the facility. Lazarus Texas Refinery, a wholly owned subsidiary of Lazarus Energy Holdings, currently owns the refinery. Blue Dolphin would buy it from Lazarus Energy Holding – its largest shareholder. Should Blue Dolphin take advantage of its newly acquired option, the refinery would require refurbishment and re-commissioning. For example, various parts of the infrastructure, including tanks, vessels, pumps, pipes, wires, instrumentation and equipment would need to be inspected and repaired or replaced if necessary. Blue Dolphin is already carrying out similar works at its existing refinery, Nixon Facility, in Wilson County, Texas.

Built on 100 acres of land, this refinery features 31 aboveground storage tanks with a total 1.18 million barrel capacity. 210,000 barrels of storage capacity is currently under a shortterm lease, while 475,000 barrels of tankage is being upgraded. Blue Dolphin expects this project to be completed and the tanks ready for lease within the next several months. ‘There is significant strategic value to the combined crude processing, transportation, as well as supply and distribution capabilities of the refineries at Nixon and Ingleside, Texas,’ says Jonathan Carroll, Blue Dolphin president and CEO. The refinery was put into operation in 1980 following a two-year construction period. It could produce 40,000 barrels per day of naphtha, jet fuel, kerosene diesel and fuel oil. ‘The storage, terminal, pipeline, barge and processing aspects of the refinery can be restarted and operated independently of each other

Blue Dolphin would have to complete infrastructural upgrades to the Ingleside refinery, similar to what is being carried out at its Nixon Facility

depending on the business case,’ Carroll adds. ‘This flexibility is what makes this option so valuable to us.’

n

Mobil New Zealand to increase storage capacity Mobil Oil New Zealand will expand storage capacity at its Mount Maunganui Terminal as demand for marine fuels grows. Mobil says it plans to upgrade an existing but unused 8 million litre storage tank to meet the increasing

need for marine fuels at the Port of Tauranga. The company will also will modify the terminal’s existing boiler facility and improve the control room and operating systems. Mobil has invested more than $70 million (€56.5 million) over the last five years, upgrading and

maintaining its terminals and service stations across New Zealand. Mobil’s Mount Maunganui Terminal supplies petrol and diesel products to commercial, industrial and retail customers across the central North Islands, as well as marine fuel oil bunkers for the Port of Tauranga. n

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TERMINAL NEWS

September 2012 • TA N K S T O R A G E

Pipeline expansion Marquis starts transferring crude from Bakken Shale Reserve requires extra Marquis has completed a number tank storage of expansions throughout Tankage at Kinder Morgan’s Burnaby Mountain storage farm will have to be increased as it works to expand the existing Trans Mountain Pipeline. The pipeline transports oil from Alberta to the Westridge Marine Terminal and the Burnaby storage facility where tankers then fill up with crude. The tank farm currently consists of 13 tanks with a storage capacity of 1.6 million barrels. It handles mostly crude but also petrol additives. Kinder Morgan says it expects the Burnaby Mountain facility will need to be doubled in capacity. It has not yet been revealed what size tanks will be installed, or their placement within the existing tank farm. That will be decided following engineering design and consultation. Kinder Morgan is expanding its Trans Mountain Pipeline system between Edmonton in Alberta and Burnaby, British Columbia. n

the last year, having recently completed projects in Oklahoma, Wisconsin, Missouri and Illinois. At the beginning of June Marquis put into operation its newly built 90,000-barrel terminal, which has the capacity to transfer over 250,000 barrels a week of crude oil from the Bakken Shale Reserve to barges on the Illinois River.

The company has also broken ground on its Hayti, Missouribased Marquis-Missouri Terminal with a barge loading facility. When the terminal is up and running in September this year, it will transport Bakken crude from Canada and North Dakota that will eventually be delivered to refineries located on the US Gulf Coast. It will be able to handle over 300,000 barrels of oil a week, with a storage capacity of 390,000 barrels. n

Work continues on expanding Kharg Island’s storage capacity Work on increasing the oil storage capacity on Iran’s Kharg Island will soon be completed, according to Ahmad Qalebani, MD of the National Iranian Oil Company (NIOC). The project’s contractor is increasing capacity by 4 million barrels and is currently 53% complete.

The new tank farm will include four storage tanks each with a capacity to store 1 million barrels of oil. The first tank is due to be tested for strengths and leaks later this year. The remaining three tanks will be hydrostatically tested after that. In addition to new storage tanks, the island’s existing oil pipeline will receive upgrades to increase the volume of oil transfer. n

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

BP and Kinder Morgan finalise long-term agreement BP North America is to store over 40,000 barrels per day of petroleum condensates at energy company Kinder Morgan Energy Partners’ terminals on the Houston Ship Channel after the two companies finalised their longterm commercial agreements. Under the agreement, Kinder Morgan will provide BP with condensate processing services at its $200 million (€165 million) condensate facility that is currently under construction. When this facility comes online at the beginning of 2014, it will split BP’s condensate into different components, such as light naphthas, kerosene and gasoil. In addition to the new facility, Kinder Morgan is investing an additional $75 million in the construction of five new storage tanks that will be connected to its condensate facility via new piping, manifolds and pumps. The new agreement also states that BP will rent 750,000 barrels of storage capacity that Kinder Morgan will add to its Galena Park terminal. According to Paul Reed, integrated supply and trading business executive

at BP, the agreement will provide US energy producers with an alternative storage location for their condensate products. He says the deal ‘demonstrates BP’s desire to provide its customers with flexibility in managing their feedstock and product needs’. And Tom Bannigan, president of Kinder Morgan Product Pipelines,

says: ‘Our splitter facility combined with our Eagle Ford-to-Houston crude/ condensate pipeline and associated Houston Ship Channel storage facilities offer customers like BP connectivity to the full range of Gulf Coast markets including refineries, chemical companies, gasoline blenders, outbound pipelines and marine facilities.’ n

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TERMINAL NEWS

September 2012 • TA N K S T O R A G E

Puma Energy to acquire Chevron’s Puerto Rico and US Virgin Islands businesses Energy firm Puma Energy has finalised a deal to buy Chevron’s Puerto Rico- and Virgin Islands-based fuel marketing and aviation businesses. This transaction comes after Chevron’s 2010 announcement of its plans to sell all of its Caribbean businesses. The business acquisition includes storage tanks located in Guaynabo and St Thomas, an aviation fuel supply business in the US Virgin Islands and a total of 199 service stations. PC Puerto Rico will manage the new company. Under the agreement Chevron’s operations, such as the retail service stations, can remain under the Texaco brand for a period of 18 months. During this time they will be changed to Puma’s brand. ‘This deal further confirms Puma Energy’s long-term commitment to Puerto Rico and our standing as one of the region’s largest investors,’ says Victor Dominguez, GM of Puma

The newly acquired storage tanks and service stations will be changed to Puma’s brand within 18 months

Energy Caribe. ‘By acquiring Chevron’s businesses in these markets, we will seek to achieve greater operational

efficiencies, improving our ability to provide high quality, competitively priced fuel to all our customers.’ n

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Total Tank Care Total Tank Care Our Total Tank Care Programme is a turnkey solution designed to help TERMINAL NEWS

TA N K S T O R A G E • September 2012

tank owner’s comply ever increasing stringent requirements and Our Total Tank Carewith Programme is a turnkey solution designed to help regulations. Our approach blends the regulatory compliance to tank owner’s comply with ever increasing stringent requirements and current codes and (built around EEMUAcompliance 157 and/ortoAPI 653) regulations. Our standards approach blends the regulatory with a RBI codes (Risk Based Inspection) System and ANDT157 (Advanced Noncurrent and standards (built around EEMUA and/or API 653) Destructive methods. Mistras TOTAL CARE Offers;Nonwith a RBITesting) (Risk Based Inspection) System andTANK ANDT (Advanced Destructive Testing) methods. Mistras TOTAL TANK CARE Offers; • PCMS Tank asset inspection database and data analyses • PCMS asset inspection database and data analyses • Asset andTank Inspection data inventory services • Asset and Inspection data inventory services • Tank specific RBI system fit to your size of operations • Tank specific RBIand/or systemEEMUA fit to your sizeno. of 159 operations • API Standard 653 Publ. In-Service inspection • API Standard 653 and/or EEMUA Publ. no. 159floor In-Service inspection • TANKPAC™ Technology, acoustic emission tank condition testing • TANKPAC™ Technology, acoustic emission tank floor condition • TALRUT Tank Annular Ring Long Range Ultrasonic Inspection testing • TALRUT NDT; Tank Annular Range • Traditional such as Ring MPT,Long PT, UT, RT Ultrasonic Inspection • Traditional NDT; such as MPT, PT, UT, RT area’s • UT crawlers and camera’s for hard to reach • UT crawlers and camera’s for hard to reach area’s • Ex-proof, intrinsically safe (Atex) UT thickness testing • Ex-proof, intrinsically safe (Atex) UT thickness testing • Mistras LSI Automated UT mapping for local corrosion monitoring • Mistras LSI Automated UT mapping for local corrosion monitoring • API Standard 653 and/or EEMUA Publ. no. 159 Out-of-Service Internal • API Standard 653 and/or EEMUA Publ. no. 159 Out-of-Service Internal Inspections using traditional Non- destructive Testing (NDT) Inspections using traditional Non- destructive Testing (NDT) • MFL or LFET or or UTUT LSILSI plate • MFL or LFET platescanning scanning • Local government contacts, • Local government contacts,guidance guidancewith withlocal locallegislation legislation • Damage and incident assistance • Damage and incident assistance • Corrosion analysis / criticality • Corrosion analysis / criticalityassessment assessment • Engineering Analysis and recommendations, • Engineering Analysis and recommendations,repair repairplans plans

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TERMINAL NEWS

September 2012 • TA N K S T O R A G E

GE Antares Capital facilitates SNH and Perenco to buy Tank Holdings acquisition floating crude oil storage GE Antares, a unit of terminal GE Capital, supported private equity company Leonard Green & Partners’ acquisition of storage tank manufacturer Tank Holdings with a $405 million (€335 million) senior credit facility.

‘GE Antares has a deep understanding of Tank’s business,’ says Usama Cortas, principal at Leonard Green & Partners. ‘They have grown with the company, delivering tailored financial solutions that meet the

needs of the business today and in the future. Their insight and industry knowledge was valid to the success of this acquisition.’ ‘We have developed a strong relationship with Leonard Green over many years and our history with Tank Holdings goes back to the late eighties,’ comments James Kenefick senior MD of GE Antares. ‘We are pleased to have these longstanding relationships and look forward to continuing to grow with both Tank Holdings and Leonard Green & Partners in the future.’ n

Cameroon’s state owned oil company National Hydrocarbons (SNH) and independent oil and gas company Perenco will acquire a floating crude oil storage and loading facility after signing a purchase agreement. The Massango terminal is located in Cameroon’s Rio del Rey basin and the two companies hope to have purchased it by November this year. With a 1.87 million barrel storage capacity, the

terminal will replace two existing, older terminals which are to be taken out of service in December. In June, the two companies established Cameroon Oil Terminal S.A. to run the facility. Perenco owns 51% of the company and SNH owns 44%. The remaining 5% of the shares are owned by SNH’s new partner, Two Square Shipping. The new terminal is strategically located, according to SNH MDgeneral Adolphe Moudiki, as 90% of Cameroon’s crude oil is currently produced in the Rio de Rey basin. n

Buckeye granted permission to build 65ft petroleum storage tanks The Board of Zoning Appeals has granted Buckeye Partners permission to erect 65ft tall storage tanks. Buckeye Partners, a provider of mid-stream energy logistics services, has proposed to build a petroleum storage facility comprising three storage tanks measuring around 65ft and 200ft in diameter in Indiana, US. However, the maximum height permitted there is 50ft and so Buckeye had to seek permission to build its facility. The board authorised the

tank height variance on 23 July but further approvals are needed before Buckeye can break ground at the site. For example, it has requested the site be reclassified from ‘light industrial/business park’ to ‘general industrial’. Such rezoning requires approval from the Plan Commission and Town Council. Buckeye is also reported to have filed a wetland permit application with the Indiana Department of Natural Resources and is currently carrying out a floodway study as the storage terminal would be built within a floodway. n

The Massango terminal is located in Cameroon’s Rio del Rey basin

Pipeline loads first oil cargo as threats from Iran grow The first shipment of 500,000 barrels of crude oil travelled from Abu Dhabi to Fujairah, Gulf of Oman on 15 July via International Petroleum Investment Company’s new pipeline.

The new 230-mile pipeline can transport 1.5 million barrels per day of crude oil from the UAE’s western desert to Fujairah. Senior officials from major oil firms including Shell, Total and ExxonMobil turned out for the opening ceremony.

This inaugural shipment is destined for the Pak Arab Refinery in Pakistan. The pipeline is part of International Petroleum Investment Company’s new $4.2 billion (€3.4 billion) oil export terminal, which features eight 1 million

barrel oil storage tanks. The company shipped its first batch from the export terminal on the eastern seaboard of the UAE as threats from Iran to close the Straits of Hormuz – 70 nautical miles away – became more prominent. n 23


TERMINAL NEWS

Titan and Guangdong Zhenrong enter into agreement Titan Petrochemicals Group has entered into a subscription agreement with Guangdong Zhenrong. Under the agreement, Guangdong Zhenong will subscribe and be allotted and issued 7 billion new adjusted shares for a total HK$175 million (€18 million) upon completion of the subscription. The proceeds from this subscription will repay Titan bondholders and provide working capital for the company. The subscription agreement is subject to a number of legal, regulatory and shareholder approvals, which, except for Whitewash Wavier, may be waived by Guangdong Zhenrong. Shareholders will receive full details of the subscription offer in due course. If the subscription agreement is implemented successfully Guangdong Zhenrong will become the controlling shareholder of Titan and the company will retain all of StorageCo’s interests in its PRC storage companies. Additionally, the proposed investment will provide Titan with the financial support it needs to facilitate its debt restructuring proposal. n

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TA N K S T O R A G E • September 2012

Buckeye announces Q2 earnings results Buckeye Partners’ net income attributable to its unit holders for the second quarter of this year was $54.4 million (€44 million), or $0.55 per diluted unit. This is compared to the $92 million reported in Q2 2011, or $1 per diluted unit. Operating income for this year’s second quarter was $81.8 million, while this was reported to be $85.9 million in the same period last year. Buckeye says net income attributable to its unit holders for the second quarter of 2011 benefitted from a $34.1 million increase after it sold a minority equity interest in West Texas LPG Pipeline Limited Partnership. The company’s adjusted EBITDA for the second quarter of 2012 was $119.9 million compared with $117.6 million for the second quarter of 2011. This improvement demonstrates Buckeye’s ‘successful integration of our pipeline and terminal acquisitions made

during 2011’, Buckeye president and CEO Clark Smith says. He continues: ‘During the quarter, we experienced improving business conditions for our domestic pipelines and terminals as well as in our international operations, though we continue to be challenged in our energy services segment as backwardation and continued basis volatility negatively impacted our results. Looking forward, strengthening domestic volumes and increasing demand for storage, both domestically and internationally, are expected to contribute to improved results.’ Smith says the company is currently working on its recently acquired Perth Amboy, New Jersey marine terminal facility, which it will turn into a ‘multi-product storage, blending and throughput facility with a direct connection to our Linden complex’. Buckeye has also finalised a lease agreement which will see a key global petroleum company occupy 1.1 million barrels of storage capacity that became operational on 1 July. n


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

REG signs supply agreement with Maxum Petroleum Biodiesel producer and marketer REG has signed an agreement with independent energy logistics company Maxum Petroleum to supply biodiesel at the Rancho Dominguez terminal near Long Beach, California. Under the supply agreement, Maxum began offering REG-9000 biodiesel to petroleum jobbers and large fleets in mid-August. ‘This new terminal will help consumers in the Los Angeles

region become more energy independent, meet carbon reduction goals and improve air quality,’ says REG’s VP of sales and marketing Gary Haer. And speaking about the new deal with Maxum, Haer notes: ‘We have confidence in the team at Maxum to quickly and efficiently process orders and load trucks to make biodiesel blending an easy step for any diesel distributor in the area.’ REG also recently announced biodiesel availability at a terminal near Lebanon, Ohio and at its own terminal in Clovis, New Mexico. n

REG-9000 biodiesel will soon be available at Maxum Petroleum’s Rancho Dominguez terminal

Plains All American continues with Yorktown expansion Crude oil transportation, storage and terminalling company Plains All American Pipeline has revealed more details about its project to convert the former Yorktown refinery in Virginia, US into an oil transportation terminal, and expand it. As part of the remodelling project, Plains All American is building two new

crude oil rail facilities for $125 million (€100.9 million) and plans to invest an additional $40 million on expansions and improvements throughout 2012. Plains All American has refused to disclose the total cost of the Yorktown expansion project, which includes upgrading the terminal’s dock and related infrastructure to handle multiple products. This would also help the terminal receive an increased number of vessels in less time. The existing facility unloaded trains

at a rate of up to 130,000 barrels per day, although it did not receive crude oil via rail. Plains All American has since signed an agreement with CSX that will see rail shipments delivered to the Yorktown terminal. These new improvements are all expected to become operational at the beginning of next year. Plains All American acquired the Yorktown refinery from Western Refining in 2011 after it was closed the previous year. n

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

Reatile Chemicals to buy interest in Vopak Terminal Durban Reatile Chemicals is to acquire interest in independent tank storage service provider Vopak’s South African facility, Terminal Durban. The transaction, which is subject to approval by the local authorities, will see Vopak sell a 30% noncontrolling interest to Reatile Chemicals – a Reatile

Group company focused on mining services, energy and petrochemicals. Vopak and Reatile have been partnering since 2009, developing expansion projects across South Africa. As a new shareholder, Reatile will provide the terminal with its ‘extensive local business experience required to enable further growth’, according to Vopak. n

Petrolneos Fuels awards Lewis Tankers with biofuels transport contract UK-based road tanker operator Lewis Tankers has won a two-year contract to transport biofuel on behalf of Petrolneos Fuels (PF). PF currently imports bulk quantities of bioethanol in its natural form and mixes it with 1% petrol. Lewis Tankers will collect fuel from PF’s storage tanks at Grangemouth Docks, Yorkshire and deliver it to their Grangemouth refinery, operating from its own base in the same area. Lewis Tankers will also, as part of the contract, transfer the petrol used in the mixing process from the PF terminal to the docks before new bioethanol shipments arrive. PF claims to currently supply around 9 million litres of fuel a day and Lewis Tankers operates over 80 tankers from nine bases situated around the UK. n

Horizon secures funds for tank farm and pipeline in Dubai Emirates National Oil Company’s (ENOC) wholly owned subsidiary Horizon Terminals is to build new infrastructure in Dubai after it secured $100 million (€79 million) financing. Horizon signed a 10-year Islamic term financing facility

with Standard Chartered Bank, Emirates NBD and Noor Islamic Bank. The funds will go towards the construction of a 60km pipeline that will transport jet fuel from the Jebel Ali Free Zone to Dubai International Airport. A new 141,000m3 tank farm for jet fuel storage will also be built. With the region’s demand for jet fuel set to dramatically

increase in the coming years, ENOC’s CEO Saeed Abdullah Khoory says the new terminal ‘will energise Dubai’s fastgrowing aviation sector’. ‘The financing agreement is a strong testament to the local and international banking sector’s confidence in the project’s business model and strong cash flow potential. The new terminal will support the

ArcLight Capital affiliate to acquire Blackwater Midstream Blackwater Midstream, a developer and manager of bulk liquid storage terminals, is to be acquired by an affiliate of energy-focused private equity firm ArcLight Capital Partners after the companies entered into a definitive agreement. Blackwater will be acquired for approximately $44.1 million (€35 million), with the implied transaction value approximately $48.7 million taking into account the company’s indebtedness. Under the terms of the agreement, Blackwater’s common stock holders will receive $0.64 per share in cash. The company’s common stock will no longer be publicly owned or traded once the 26

transaction has been completed. The transaction is expected to close at the end of this year, subject to the satisfactory completion of a number of closing conditions including the approval of Blackwater’s stockholders. Blackwater Midstream’s CEO Michael Suder says the agreement provides ‘excellent value to our stockholders and positions Blackwater for long-term success’. Blackwater Midstream has three terminal sites located in Westwego, Louisiana; Brunswick, Georgia; and Salisbury, Maryland. The Westwego facility has an 857,000-barrel storage capacity. Its Salisbury storage terminal comprises a 172,000-barrel capacity and Brunswick can store up to 161,000 barrels of capacity. n

growing needs of Dubai International Airport, the Al Maktoum International Airport and Dubai’s increasing energy needs as it moves towards further economic growth,’ he adds. The pipeline will be ENOC’s second attached to Dubai International Airport, with commissioning planned to take place in the second half of next year. n

Fourth storage terminal planned for Tianjin Joint venture company Shell Oil Group of North China says it will build a new RMB550 million (€68 million) oil storage terminal in Tianjin, China. The facility will be able to store 200,000m3 of oil when it is fully completed in 2015. It will be built in two phases, the first of which will be 55,000m3 capacity installed and operational by 2013. Shell Oil Group of North China will break ground on the second phase in 2014, with completion scheduled for 2015. The terminal will be able to handle 3 million tonnes a year of oil, generating an estimated RMB24 billion annually in sales revenue. Tianjin is already home to three largescale oil storage plants, including two 3.2 million m3 crude reserves, one for the storage of national oil and the other for commercial-based oil; and another 1 million m3 commercial crude oil reserve. n


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

New storage tank for Fore River Terminal

news in brief

Cuba to increase storage capacity

Cuba may upgrade some of its oil tanks in a move that will increase storage capacity in the region. The majority of these improvements will be carried out by oil company Cubapetroleo, which is planning upgrades to its 50,000m3 Matanzas province-based tanks. These works will ensure the storage tanks remain operational for the next 20-25 years. Cubapetroleo has also built a new wastewater treatment facility. The plant can receive oil vessels that are up to 20m deep and weigh up to 180,000 tonnes.

Work starts on port expansion In the west central region of Asia, the Ministry of Transport and Communications has broken ground on the Port of Salalah expansion project. Hani Archirodon Construction Company was awarded the construction contract in April and plans to have completed the project within 19 months. The expansion will increase liquid product handling capacity at the port to nearly 6 million tonnes, including fuel and methanol. In addition, four new docks will be built at a cost of 55 million rials (€115 million). The docks will measure 1.266m in total, with an 18m draft that will be able to handle 144,000 tonnes of delivery vessels.

A repair and upgrade project at Citgo Petroleum’s Fore River terminal in Braintree, Massachusetts will see the construction of a 250,000 gallon biodiesel storage tank. Citgo will first focus on the repair of its terminal dock; prolonged exposure to salt water has resulted in the steel exterior wearing away, and a new layer of steel now needs to be added. Citgo will also erect a new mooring line and gangway under the plans, but has not announced any intentions to extend the dock itself. The company hopes to begin work in Q3 2012, with completion slated for mid-2013. The installation of the new biodiesel tank will not begin for several months and Citgo expects the tank installation and dock upgrade work will overlap. However, some are concerned that the increased noise created from these two projects will disrupt the surrounding area. Citgo says night work will take place as crews work 12-hour days to allow for deliveries at the terminal. However, it insists this work will be finalised within fourteen days. The conservation commission and the Army Corps of Engineers have already approved the project, with site plan approval and a special permit expected at a meeting in August. n

Tank storage in Alaska could drive down fuel costs Establishing tank storage space could be the key to lowering Alaska’s high fuel prices and breaking the hold the state’s two refiners currently have over the market. Senator Bill Wielechowski, with backing from the Alaska Senate, has proposed building 1 million gallons of tank storage capacity at the Port of Anchorage in a bid to hopefully reduce petrol prices for the state’s residents. According to Wielechowski, the

storage capacity would be available to large-scale traders such as Costco, Fred Meyer and Safeway, allowing them to economically ship fuel to the new storage terminal from Seattle. Savings at this level would then be passed down to the customers, with Alaskans ending up with cheaper fuel. The Alaska Industrial Development and Export Authority estimates an investment of between $75100 million (€60-80 million) would be needed to build the storage terminal, which could be completed by Q3 2013. Alaska would see its investment repaid when the terminal becomes operational. n

Petrojam to repair tank Upgrades to a storage tank at Jamaica’s Petrojam Refinery will soon get underway. Quality Plus Contracting Company was awarded the $43.5 million (€36 million) contract to repair the terminal’s number 12 petroleum tank on 18 July. $5 million of the total contract sum has been set aside for unforeseen costs, says the minister with responsibility for information, Sandrea Falconer. The contractor company is expected to have completed the tank repairs within 100 days. The work required to restore the storage tank includes replacing the roof, floor, top shelf course and top angle. A non-destructive examination of the tank will be carried out, and it will be sand blasted, primed and painted.

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Lagos tank terminal increases security Rising unrest in Lagos, Nigeria has forced tank farm owners to increase their security. At the Ibru Complex – Africa’s largest terminal for the receiving of petroleum products – management has been advised to step up its protection measures for the sake of lives, as well as to protect the facility. Workers at the complex have also been warned that only those carrying out lawful business activities should be allowed around or in the terminal.

The warning comes after a letter from Godfrey Okorie, the chairman of the technical committee of directors, highlighting a number of illegitimate activities that take place in the complex’s unit offices. In his letter to the zonal chairman of the Petroleum Tanker Drivers branch of the National Union of Petroleum and Natural Gas Workers, Okorie says that criminal traders and illegal petroleum products traders often come to the complex to carry out business, in addition to a number of unidentified visitors. n


September 2012 • TA N K S T O R A G E

TERMINAL NEWS

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

Colt terminal put into service Biox to build 100mly Midstream company biodiesel plant at IMTT Rangeland Energy has put into operation its Bayonne terminal Colt terminal, located in the Bakken Shale of North Dakota.

The facility allows refiners, marketers and producers to transport crude oil from the terminal via unit train and the Colt Connector – a 21 mile multi-directional pipeline that connects the Colt hub with a number of infrastructural systems, including the Tesoro and Enbridge pipelines. The Colt terminal receives crude oil from the Bakken via gathering pipelines and trucks, which is then stored prior to delivery across the North American market. The Colt hub is served by BNSF Railway Company. Colt includes five storage

tanks with a total capacity of 120mbl. Rangeland’s Dry Fork Terminal in North Dakota features an additional 120mbl storage tank. The first batch of crude oil to leave the Colt terminal did so via unittrain on 5 June. Rangeland announced the facility was in service on 11 June. ‘With four large crude oil refiners and marketers as anchor customers, along with upstream and downstream connectivity by pipeline and rail, the Colt hub will create a point of liquidity for Bakken crude oil production by bringing together multiple buyers and sellers at the terminal,’ says Rangeland president and CEO Christopher Keene. ‘The Colt system is well positioned to grow with the industry in this prolific region.’ n

Petroplex launches FEED study for Baton Rouge bulk liquids storage terminal Petroplex International, the Baton Rouge-based storage tank terminal developer behind the new bulk liquids facility in St. James Parish, Louisiana has launched the project’s frontend engineering and design (FEED) study. Quanta Service’s QPS Engineering will lead the engineering and design phase, with Verwater providing storage tankrelated engineering advice. ‘We continue to build momentum in the development

and financing aspects of this project and hope soon to deliver this much-needed storage, blending and logistics facility to our anchor customers in the St. James Parish region,’ says Petroplex CEO Timothy Berrigan. Petroplex hopes to break ground on the new terminal in the first half of next year, with commercial operations slated for 2014. The storage and distribution terminal will feature a unit-train facility, barge and ship dock, truck racks and pipeline, and will be designed and tailored to client specifications. n

Renewable energy company Biox will build its second biodiesel production facility within International-Matex Tank Terminals’ (IMTT) Bayonne terminal at New York Harbor after the two companies signed definitive agreements.

Biox designs, builds, owns and operates biodiesel production facilities. Its first facility is located in Hamilton Ontario. The $60 million (€47 million) Bayonne plant will be Biox’s second project, with a planned 100 million litre a year production capacity. Under the agreements, Biox has secured 3.5 acres of IMTT’s 600-acre Bayonne terminal. The agreements include a longterm land lease agreement for the plant, as well as long-term leases on existing storage tanks at IMTT New Jersey terminal. ‘With this second facility our production capacity will grow by almost 150% from existing levels,’ explains Biox CEO Kevin Norton, who says the biodiesel sector within North America ‘has evolved due to the mandated minimum volumes’. ‘IMTT is an ideal partner for our next facility. We have been working with them for more than five years using their Bayonne terminal as a distribution and blending site for product produced in Hamilton. Based on that long standing relationship, we have already conducted the early stage planning for this next facility, including the design tie-ins and site specifications prior to signing these agreements.’ Biox is currently carrying out the planning and permitting phase and expects construction of the plant to be finalised by December 2013. n

Dialog to double capacity as interest in Pengerang grows In Malaysia, Dialog Group Berhad could expand its Johor terminal as interest in Pengerang increases. A number of Taiwanese oil and gas investors, along with investors from other countries, have shown particular interest in Pengerang recently due to its advantageous location and natural deepwater. These strategic factors could see the combined storage capacity in Pengerang and Jurong Island exceed that of Rotterdam, with Pengerang’s petrochemical industry alone surpassing Rotterdam’s in 20 years. With this in mind, Dialog is now said to be investigating the need for liquefied natural gas (LNG) storage at its 10 million m3 facility, with possible plans to double capacity. n

Shell adds new diesel storage tanks to Queensland terminal Shell Australia is now able to store an additional 38 million litres of diesel at its Mackay Terminal in Queensland, Australia having completed the construction of two new diesel storage tanks. Shell’s customers, located in the Bowen Basin and Far North Queensland, will benefit from this extra capacity and supply security, and Shell’s facilities manager Paul Benjamin says 30

the expansion came in response to current demand. ‘Shell’s investment in the Mackay tanks is the largest investment in its terminal network in Australia for many years. ‘The tanks are the largest in the Shell Australia network, each holding 19 million litres of diesel, supporting our customers’ growth requirements in the Far North Queensland region,’ Benjamin adds. Over 200 workers were needed to complete the project, which took more than 140,000 hours to finish. n


September 2012 • TA N K S T O R A G E

TERMINAL NEWS

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TERMINAL NEWS

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www.mt.com/ ind-processweighing

TA N K S T O R A G E • September 2012

ECNEC approves 11 storage tanks

Eleven oil storage tanks are to be built in Bangladesh as part of eight development projects that have been approved by the Executive Committee of the National Economic Council (ECNEC). A total Tk1.4 billion (€13.6 million) will be invested in the new tanks, which are planned for Eastern Refinery, Chittagong, Bahhabari and Godnail. The 11 tanks will have a combined storage capacity of 1.2 million tonnes. Three 13,000-tonne oil tanks will be built at Eastern Refinery for Tk470 million. Three 10,000-tonne tanks are being developed at Chittagong and Baghabari oil depots for Tk270 million and Tk400 million respectively. And at Godnail depot, Tk260 million is being invested in the construction of a 15,000-tonne diesel tank and a 7,000-tonne Jet A1 fuel storage tank. The eight development projects will cost a total Tk15.47 billion and include a new fertiliser R&D centre and the expansion of the Palli Daridra Bimonchon Foundation. n

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A 1 million barrel oil storage facility has been launched in Iran. The facility is located in the oil region of Bahrega, Bushehr province. Today this district produces 235,000 barrels a day of oil after it began production in the 1950s. The upgrades that have now been completed on the facility, which were carried out by Iranian specialists, means it can continue operating for a further 50 years. It was previously reported

CIF to sell stake in LBC Challenger Infrastructure Fund (CIF) has entered into an agreement to sell its 66.2% stake in tank storage operator LBC Tank Terminal Group. The investment management firm decided to sell its majority share after a ‘rigorous and exhaustive process’, according to chief executive Emil Pahljina. It eventually struck a deal with a consortium made up of Dutch pension fund asset

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that Iran could store crude oil in the Persian Gulf for 10-12 days. However, the increase in new storage facilities, including the one in Bahrega and a second, 1 million barrel storage facility at the Kharg Island oil terminal which was re-commissioned in March, could see this capacity increased to 30-40 days. And in January, the nation broke ground on an 8 million barrel private oil terminal. Iran has the third largest oil reserves in the world, and the second-largest natural gas reserves. n

managers APG Algemene Pensioen Groep N.V and PGGM, and Australian superannuation investors. Access Capital Advisers and Baker & McKenzie advised the investors. CIF has agreed to sell its stake for $277.8 million (€222 million). The sale is subject to the receipt of European antitrust clearance and, if required by the ASX, the approval of the unit holders of CIF. The transaction has now closed, leaving CIF with its controlling share in UK-based utilities company Inexus n


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

Oiltanking Partners reports Q2 financial results Independent tank storage provider Oiltanking Partners has reported a second quarter 2012 net income of $16.6 million (€13.3 million). The company's net income for the same period in 2011 was $7.6 million. EBITDA for Q2 2012 was $21.1 million, a 25% increase over the $16.9 million reported in the same period last year. Oiltanking says its overall operating results for the second quarter of 2012 were higher because storage and throughput volumes generated increased service fees, in addition to higher ancillary service fees and lower operating expenses. The 14.1% increase in revenues has been attributed to additional revenues from new storage capacity placed into service in December 2011 and April 2012, and to an escalation in storage fees. Oiltanking's operating expenses during the second quarter of 2012 were $8 million, $0.2 million less than the same period in 2011. This is primarily due to

lower property taxes and power and fuel costs, partially offset by higher repairs and maintenance costs. Selling, general and administrative expenses increased by $0.1 million due to increased costs associated with being a publicly traded company and increased personnel costs. 'The partnership benefitted from the positive impact of an additional 390,000 barrels of crude oil storage capacity that was placed into service in April as well as increased throughput during the quarter,' comments Carlin Conner, chairman, president and chief executive officer of Oiltanking Partners' general partner. 'Our current crude storage expansion projects and crude pipeline project are on budget and on schedule with an additional 1.1 million barrels of new storage capacity and the pipelines expected to be placed into service by early 2013. We have secured long-term contracts for 100% of this additional capacity and our confidence in future growth opportunities continues to build as our existing customer base, as well as our new customers, continue to express strong interest in making future commitments,' he adds. n

Terminal certified as industry standard compliant Georgian Batumi Oil Terminal is now recognised as ISO/ TS 29001:2010 compliant after it received certification from Bureau Veritas Certification Ukraine. Bureau Veritas carried out the audit between 11 and 15 June. The body said the terminal was striving to continuously improve its operations and featured controlled processes. The terminal was also praised for its skilled staff, who have direct involvement in an Integrated Management System. Following the certification, the terminal’s director general Temirkhan Abdirov was reported as saying: ‘We have implemented the Integrated Management System in order to raise the level of all process manageability.’ The oil terminal is located in the Batumi Sea Port in the Black Sea. n

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TERMINAL NEWS

TA N K S T O R A G E • September 2012

Westway in talks for potential sale of Westway Terminals business Westway Group, a provider of bulk liquid storage through its Westway Terminal subsidiary, and liquid animal feed supplements through Westway Feed Products, could be one step closer to selling this latter subsidiary after it entered into final negotiations. The company is also looking to sell a number of its European-based bulk liquid storage terminals. ED&F Man Holdings, Westway’s largest stockholder, could acquire the supplement business and storage terminals after a binding purchase agreement has been completed, among other conditions. The European terminals to

be sold are located in Dublin, Ireland; Esbjerg, Denmark; and Liverpool, Hull and Grangemouth in the UK. In addition, Westway is also in talks with a group of potential buyers of its Westway Terminals business. Westway is exploring these sales following its strategic review process. The company’s chairman Francis Jenkins Jr. says the sale of these two businesses ‘could best serve to maximise aggregate value for the company’s stockholders, while providing each business with the ability to better realise its full growth potential under new ownership’. Westway has not disclosed when it would like the potential transactions to be completed, if indeed either arrangement results in a transaction. n

Total Energy to convert newly acquired facility into storage tank construction site Infrastructure company Total Energy is to convert a shutdown plant in Stillwater, New York into a storage tank production site. Total Energy acquired the plant from commercial printer Quad Graphics and will now turn it into a state-of-the-art facility for the construction of large-scale tanks able to store up to 300,000 gallons of oil. Total Energy also plans to operate its new engineering and construction division from the site. Over 200 people will work at the new facility when it reaches full production in 2013. This is expected to increase to 300 by 2015. Total Energy’s CEO Robert Armentano was quoted as saying: ‘We are well positioned to capitalise on the current energy and petrochemical boom and will expand our operations considerably in Stillwater, providing turnkey engineering and construction services to our customers.’ n

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Terminal NEWS

September 2012 • TA N K S T O R A G E

Vopak E.O.S seeks permits for Estonian ramp up Vopak E.O.S. is to increase capacity at its liquid fuel terminals in Estonia. The Baltic Sea-based independent oil products terminal operator has applied for permits that, if granted, would see Vopak E.O.S. expand capacity at its Termoil terminal in Maardu, and at Lonessa in the Port of Muuga. At Lonessa, Vopak E.O.S. is planning an expansion of 460,000m3 additional storage. A further 330,000m3

capacity will be built at its Termoil facility. ‘The energy market we are servicing is very dynamic and in order to optimise our abilities, enlargement of our storage facilities is being considered, anticipating our present and future customers’ demand,’ CEO of Vopak E.O.S. Arnout Lugmeijer said in a statement. The company has not yet said when it expects its new terminal capacities to come online; approval of the new plans, which are currently under development,

Vopak E.O.S. is expanding storage capacity

will take between nine months and two years, with construction taking an additional 18 months. The required capital to complete these expansion projects is

unknown at this point. In addition to these two terminals, Vopak E.O.S. also operates at Trendgate, Pakterminal and Stivterminal, with a total storage capacity of over 1 million m3. n

Odfjell to purchase 25% share in Noord Natie

TIPER set to double storage capacity

Bulk liquid storage provider Odfjell Terminals is one step closer to acquiring a 25% share in Noord Natie Terminals.

In East Africa, petroleum storage company Tanzania International Petroleum Reserves (TIPER), a 50/50 joint venture between the Tanzanian government and Swiss company Oryx Oil and Gas, is to expand its storage capacity.

The two companies have reached an agreement for the transaction, for which a letter of intent was signed in September 2011. As stated in the LOI, Odfjell would acquire 25% plus one share of the equity in Noord Natie Terminals located in Antwerp, Belgium.

Odfjell Terminals (Europe) B.V., a subsidiary of OTLG C.V., which is the joint venture company between Odfjell Terminals B.V. and Lindsay Goldberg, will close the deal. The value of the acquisition is valued at approximately 10 x EBITDA. The Noord Natie Terminals facility can store 297,000m3 of product; this could increase to 452,000m3 as plans are in place to expand the facility by a further 155,000m3 in the coming years. n

The company’s 147,000m3 storage terminal is already the largest in the country, however TIPER plans to invest $16 million (€12.6 million) to

bring this up to 300,000m3. The terminal currently comprises 30 tanks ranging from 2,000m3 to 14,500m3 in size, suitable for storing petroleum products such as diesel and petrol, kerosene and heavy furnace oil. The first phase of the expansion project will increase TIPER’s capacity by 72,000m3; the company plans to bring online two 36,000m3 tanks at the beginning of next year. The remaining storage tanks will be installed and operational by 2015. n

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Terminal NEWS

TA N K S T O R A G E • September 2012

Petrobras invests in floating oil terminal Petrobras, Brazil’s state-owned energy company, is investing $318 million (€253.5 million) to develop a floating oil terminal that will enable tankers to refuel at sea. The Transfer and Storage Offshore Unit will slash the distances currently covered by oil vessels, helping to lower capital expenditure. This new technology will allow oil to be stored at sea and transferred to export vessels, whereas today crude oil is transported from the offshore oil rig to the coast where it is then collected by tankers for export. When it comes online in June 2014, the terminal will be the world’s first floating oil terminal able to refuel tankers at sea. The unit, which is currently under construction in China, will be located close to the drilling rigs, 55 miles off Rio de Janeiro. It will be able to store 2 million barrels of oil. n

The floating terminal will allow oil to be transferred at sea

Vopak announces HY1 2012 operating profit Bulk liquid storage terminal company Vopak has announced that the group’s operating profit for the first half of this year was €117.5 million, mainly due to the sale of Vopak’s 20% equity stake in BORCO in the Bahamas. Operating profit – excluding exceptional items – amounted to €279.9 million, up from the €217.9 million in profits reported for the same period in 2011. Net profit attributable to holders of ordinary shares – excluding exceptional items – increased by 37% to €169.5 million compared to €123.5 million in the first half of 2011. Vopak expects to achieve

its 2013 outlook of €725800 million group operating profit before EBITDA in 2012 (€636 million in 2011). Projects under construction and the acquisition of the assets of the former Coryton refinery in the UK will add 5.3 million m3 of storage capacity in the years up to and including 2014. In June, Vopak, along with Shell and Greenergy, acquired assets of the former Coryton refinery after reaching an agreement with the joint administrators of Petroplus Refining & Marketing. The consortium is now working to convert the terminal into an import and distribution terminal that will be managed by Vopak. The initial storage capacity will be around 500,000m3, with potential to

Vopak is expanding capacity at its Europoort terminal 36

expand to up to 1 million m3 in later stages. The transaction is expected to close in September, and the terminal is expected to be in operation at the beginning of 2013. ‘Vopak operates in a dynamic and challenging market environment that changes rapidly,’ Eelco Hoekstra, chairman, executive board and CEO of Vopak, says. He quoted ‘Vopak’s terminals at key strategic logistics hubs’ as the reason for its increased operating profit. ‘Despite some lower occupancy rates in certain locations, the fundamental demand for oil storage remains robust. However, the demand for chemical storage service shows different developments in different regions, being steady in Asia, encouraging

in North America and mixed in Europe. Although we have seen improvements in the market for storage and handling of biofuel products in the first half year, the flows continue to be unpredictable,’ Hoekstra adds. In the first half of 2012 Vopak says the demand for its tank storage services was ‘healthy’, despite being down 1% compared to last year’s 92%. Throughputs and occupancy rates at some of the company’s European chemical terminals were reduced in the second quarter of 2012, mainly due to lower demand in the key industrial chemical-user sectors and a reduced need for crude and gasoil storage capacity in Rotterdam. At the beginning of this year Vopak commissioned its new chemical storage terminal in Tianjin, China, which has a capacity of 95,300m3. Vopak is now planning to expand the terminal by 240,000m3 for LPG storage, expected to be completed in 2013. In addition, Vopak is expanding its storage capacity at Vopak Terminal Europoort in the Netherlands for middle distillates by 400,000m3. It is also replacing 52,000m3 of tank storage capacity at Vopak Terminal Vlaardingen in the Netherlands by 140,000m3 for the storage of vegetable oils and biodiesel. n


technology NEWS

September 2012 • TA N K S T O R A G E

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Terminal NEWS

TA N K S T O R A G E • September 2012

Liquid bulk throughput increases at Port of Rotterdam The total volume of liquid bulk handled in the Port of Rotterdam rose by 10.6% to 107.5 million tonnes in the first half of 2012. Crude oil incoming trade was close to reaching record levels for the first six months of 2012 after it hit 50.6 million tonnes, a 9.6% increase. The handling of mineral oil was also up by 13.8% to 39.9 million tonnes, while fuel oil throughput was stimulated by imports from Russia and exports to Singapore. Other liquid bulk, including basic chemical products and vegetable oils and fats, reached 16.8 million tonnes in the first half of 2012, a 5.6% growth. The Port of Rotterdam attributes this to the rising throughput figures for palm oil, as a result of such factors as the opening of the plant of Neste Oil. There was also an increase in imports of MTBE and biodiesel, mainly from Asia. However, ethanol imports fell. The port says that no maintenance shutdowns have taken place in the last six months, unlike the same period in 2011 when there were two major shutdowns. Additionally, production capacity elsewhere in Europe fell due to

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The Port of Rotterdam handled near record-breaking volumes of crude oil during the first six months of the year

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TECHNOLOGY NEWS

September 2012 • TA N K S T O R A G E

Vopak and Emerson develop new software Working in close collaboration with Vopak, Emerson Process Management has developed a software solution specifically for the management and optimisation of bulk liquid terminals. The new application is based on the logistics module in Emerson’s Syncade platform, which provides intelligent links between IT and industrial automation technology. This software application has been deployed for the first time at the recently completed Vopak fuel distribution terminal at Amsterdam Westpoort in the Netherlands, where an efficiency improvement of up to 30% has been achieved. ‘For Vopak, the focus of this project was to investigate the possibility of improving service levels and increasing efficiency

The Syncade Logistics bulk liquid terminal application has been installed at Vopaks fuel distribution terminal at Amsterdam Westpoort

by deploying intelligent information technology for the management and control of our terminals,’ explains Ton van Dijk, global director ICT at Vopak. ‘In addition, we wanted to make improvements in other

areas such as safety, speed and asset optimisation. ‘We developed this new software application to meet the requirements of Vopak and have now made it available to other terminal companies,’ says

Guido Wink, Emerson Process Management’s GM of sales and marketing for the Netherlands. ‘Vopak provided the terminal technology and logistics know-how, and we have converted this into a specific application for managing bulk liquid terminals.’ The bulk liquid terminal application has been developed to support the expanding terminal market. The new application within Syncade Logistics comprises advanced planning and integrated stock management tools, order handling and auto-routing. The software is aligned with the liquids handling application within Emerson’s DeltaV digital automation system. Through links to Emerson’s DeltaV process automation system and to Enterprise Resource Planning systems, Emerson says Syncade Logistics provides savings at the administrative level. n

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TECHNOLOGY NEWS

Blistering heat. Frigid cold. Corrosive humidity. Blinding sandstorms. Bring Bring it it on. on.

TA N K S T O R A G E • September 2012

Limitorque Limitorque

Limitorque Limitorque QX: QX: The full measure The full measure of of safety safety and reliability in the and reliability in the next-generation next-generation smart smart quarter-turn quarter-turn actuator. actuator. Designed for the harshest environments, Designed for the harshest environments, the Limitorque QX builds on the legendary the Limitorque QX builds on the legendary multi-turn MX actuator currently hard multi-turn MX actuator currently hard at work on all six habitable continents. at work on all six habitable continents. Featuring a unique absolute encoder for Featuring a unique absolute encoder for tracking position without troublesome tracking position without troublesome batteries, the QX also delivers built-in batteries, the QX also delivers built-in self-test (BIST) features and LimiGard™ self-test (BIST) features and LimiGard™ fault protection that further enhance fault protection that further enhance safety and reduce downtime. The QX also safety and reduce downtime. The QX also features non-intrusive configuration and features non-intrusive configuration and diagnostics and a double-sealed terminal diagnostics and a double-sealed terminal block compartment that’s built to withblock compartment that’s built to withstand any conditions you can throw at it. stand any conditions you can throw at it.

Flowserve Flowserve Limitorque’s Limitorque’s other products, other products, visit visit www.limitorque.com www.limitorque.com

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Experience Experience In In Motion. Motion. 38

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technology NEWS

September 2012 • TA N K S T O R A G E

Siemens launches new compact Coriolis flow solution Siemens Industry Automation Division has created what it claims to be one of the most compact Coriolis flow measurement solutions. The digitally-based flow solution Sitrans FC430 with short build-in-length is suitable for any liquid or gas application within the process industry. It is suitable for multiparameter measurement and can be used in applications such as fast filling, batch control, blending and dosing, in addition to the measurement of gases or fluids. The Sitrans FC430 features compactness, a high accuracy of 0.1%, low pressure loss, stable zero point and data update with 100 hertz high-speed signal transfer. It also comes with user-friendly support tools which provide direct access to all operational and functional data, certificates and audit trails. Sitrans FC430 is amongst the first of Coriolis flow meters to offer SIL 2 and 3 approvals in hardware and software respectively. It can ensure a flexible supply chain for rapid responses to customer enquiries thanks to the highly automated production, and guarantees short lead times for tailormade solutions by assembly robots guided by 3D vision laser systems. n

Siemens’ Sitrans FC430 is compact and SIL 2 and 3 approved

Honeywell launches Exprion Orion globally Technology inventor and manufacturer Honeywell has launched its next generation industrial automation system, Experion Process Knowledge System (PKS). Experion PKS Orion includes two main improvements: Honeywell says it is the first industrial process system to use Universal Channel technology to remotely configure process and

safety systems without the need for additional hardware; and it is equipped with a complete visualisation solution that includes a complete package of hardware, software, skills, guidance and best practices, training, and support. In addition to these advancements, Honeywell says the Experion platform is the first distributed control system to achieve ISA99 certification, which assures manufacturers that Experion PKS Orion meets the industry’s most

rigorous cyber security standards. With its portfolio of turnkey virtualisation solutions, Experion PKS Orion benefits both customers implementing new projects, as well as those who want to get more out of their existing operations. Other Experion PKS Orion release features include enhancements to Experion Batch Manager, new operator effectiveness solutions, enhancements in Safety Manager, and a new Universal Safety Logic Solver. n

Newson Gale’s grounding clamp receives IECEX approval Newson Gale has recently upgraded its grounding clamp, originally launched in 2001, with hazardous area certification to the latest applicable sections of IEC 60079. The Bond-Rite Intrinsically Safe SelfTesting Static Grounding Clamp can now be used where the IECEX scheme is recognised, in addition to its existing approvals according to ATEX and NEC hazardous area standards. The clamp is designed for verifying

safe low-resistance static grounding and bonding conditions in many operations involving flammable liquid vapour, gas and combustible dust handling environments. A pulsing green LED indicator provides the user with reassurance when a lowresistance bond to earth/ground has been established even in the presence of insulating coatings, oxidisation, corrosion or excessive contact resistance, as well as continuously monitoring the condition of the bonding cable. As part of the updated certification,

the Bond-Rite Clamp has now been tested and approved for a wider ambient temperature range from -40°C to 60°C. This improved rating increases the range of applications where the clamp may be installed. The lithium battery power source provides for simple, cost effective installation, requiring no mains/line voltage power supply. The Bond-Rite Clamp is suitable for use in all IEC/ATEX Gas and Dust Zones (0, 1, 2 and 20, 21, 22) as well as NEC Hazardous Location Classes I, II, III and Divisions 1 and 2. n 41


technology NEWS

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TA N K S T O R A G E • September 2012


technology NEWS

September 2012 • TA N K S T O R A G E

Sockit solves oily water contamination Oil and environmental services company Adler & Allan has launched an oil contaminated water filtration system which cleans contaminated water as it is being pumped away. The Sockit filtration system is a simple way of dealing with oil contaminated water being pumped out of oil tank bunds, trenches, manholes, vaults, sumps, retention ponds and ditches. It uses multi-stage filtration to remove hydrocarbons and sediment to almost non-detectable levels. The system can be used in a wide range of de-watering applications without slowing up the pumping process, and is reusable and recyclable. The system means contaminated water does not have to be taken away by tanker for cleaning elsewhere, while also avoiding releasing contaminated water into the environment. Adler & Allan says the product is most attractive to companies registered for BSN EN ISO 14001 certification as it offers cost savings and reduced tank traffic and pollution risks. Sediment removal efficiency using Sockit exceeds the regulatory goal, with an average 99% attained in tests. Results show the filtration system removes oil to a non-detectable level with no visible oil sheen, filtering heavy oil contamination down to 2.31mg/l. n Adler & Allan’s Sockit filtration system in action

Wolseley UK targets growth in the industrial market Wolseley UK is looking to expand into the industrial market, including the storage tank, pipe and valve industries, describing the industrial sector is a ‘major opportunity’ for the company. The company has prioritised a number of industries that it wishes to focus on in order to maximise returns: power generation, including gas, coal and nuclear; the water industry, the automotive sector; food and beverage manufacturing; and process and marine engineering. Wolseley says all these different industries require reliable pipework and related valves which often operate at pressure and sometimes in challenging and technically complex environments. It is here the company’s expertise in carbon steel, stainless steel and the growing range of high quality plastics for pipes and valves will be advantageous. n

Cordex Instruments launches new gauge for effective corrosion monitoring Cordex Instruments has launched its latest corrosion monitoring device which it says streamlines readings gathered in the field and enables users to monitor integrity levels at specific points on an asset or pipeline. The latest UT5000 Intrinsically Safe Thickness Gauge is a hand-held device which can be used for non-destructive testing to establish the extent of corrosion. It features a number of updates, including intelligent measuring technology which can record multiple readings at specific locations. A total of nine multi-point readings can now be saved against each Radio Frequency Identification (RFID) tag on the asset or pipeline, thus reducing time spent in the field and increasing the effectiveness and efficiency of corrosion monitoring.

The device, which provides accurate thickness readings to the nearest thousandth of an inch, is fitted with the Echo-Echo technology which can read metal thickness levels, even through a painted surface. The UT5000, which is ATEX and IECEx certified for Ex ib IIC T4 Gb and Ex ibD IIIB T200˚C Db hazardous areas, has also achieved its dust certification and can be used in dust environments which have been assessed as having an explosion risk. The Cordex Connect software programme allows users to manage and assess the information gathered by the UT5000. The software uses RFID to tag every thickness measurement with a specific location, date and time, enabling trend analysis of the asset or pipeline. Engineers can use the data to easily identify trouble spots and create predictive maintenance programmes. n

Cordex’s portable UT5000 for corrosion monitoring 43


technology NEWS

TA N K S T O R A G E • September 2012

Trial to begin for pollution control technology The mis-handling of hydrocarbon spills has great actual and reputational costs for the companies involved. A pollution prevention system from C.I. Agent Solutions replaces the large concrete ‘bunds’ and all the costs, risks, lengthy installation procedures and oily water management which they currently involve, with a simple green polymer. The product turns the oil, diesel or other hydrocarbon waste into a non-leaching solid which can be quickly and cheaply collected and re-used in tarmac and other road building materials or burned for energy. Utility company UK Power Networks is soon to begin trialling the installation of this system and says the trials could radically change the way in

which the utilities industry, oil companies, port authorities, highway authorities and many others protect and dispose of oil and other liquid waste. Mark Dunk, UK Power Networks’ civil standards manager says: ‘It’s a legal requirement that we have secondary containment to prevent oil getting into the ground. We’ll be monitoring this carefully and if it’s as good as we hope it is I will be pushing for us to use it more widely. I’m hopeful this is a really good opportunity for us to save money.’ The installation, which is also being watched closely by other utilities, costs roughly two-thirds the price of a concrete bund installation, takes up to 12 working days as opposed to eight working weeks, is low hazard risk in installation as opposed to high risk for concrete, and requires no on-going maintenance of oily water separators. n

Vopak awards multi-million Euro contract to Geldof Integrated steel solutions provider Geldof Metal Construction has been awarded a €25 million contract from storage and shipping company Vopak. The contract will see Geldof build 52 insulated tanks for the terminal in Vlaardingen, the Netherlands. The tanks, expected for completion by June 2013, will be able to store a total 140 million litres of primarily bio-oils.

Geldof, with its tailored approach to this tank construction project, proposed building the tanks in its own workplace before delivering them to the site as a whole. This ‘shop-built’ method will ensure greater safety on-site and a shorter turnaround time for the project. A mobile crane is used on the site to move the tanks via temporary wooden tracks to their permanent foundations. Just before the tanks are installed, the foundations need to be insulated so that the

entire structure is insulated as a whole. The temporary track also needs to be dismantled as the tanks are put in place. Once the bases have been insulated it is no longer possible to transport anything over them since this might damage the insulation. Installing all the pipelines is also part of the contract. These modules will have to be ready on-site so they can be fitted between the tanks while they are being put in place. The tanks are being supplied in two phases. In

January Geldof delivered 18 x 2,250m³ tanks and 8 x 3,500m³ tanks. The same number of tanks is being delivered again in the second phase at the end of May 2013. The 36 smaller tanks are 11.5m in diameter, 22.5m high, and weigh 65 tonnes. The 18 larger tanks weigh 86 tonnes. The height of the tanks has been determined by the bridges en route to Vlaardingen, which do not allow loads higher than 30m. n

TanQuid Polska installs OpenTAS 5.0 The TanQuid Polska terminal, part of tank farm operator TanQuid Group, in Radzionkow, Poland has installed OpenTAS 5.0 – Implico’s latest terminal management and terminal automation system. The system is based on a new database and it includes customised solutions which guarantee fast and accurate biofuel blending processes. The installation saw Implico – an international consulting and software company – first generate a new data structure. TanQuid’s Polish site was then able to go live with OpenTAS 5.0 in the second quarter of this year. 44

Implico’s latest terminal automation system is installed at the TanQuid Polska terminal

The installation of the system means processes at the site are now more efficient. With 25 storage tanks with a total capacity of 136,000m3, and operations

which run 24/7, it was important for downtime to be a short as possible. Implico says its thorough preparation and expertise meant both the tests and

the go-live was successful. Implico found the terminal’s need for biofuel blending a challenging aspect of the project; it added a biofuel component to the fuel at the filling station. Polish law requires physical proof of the biofuel content, and the bill of lading must be accompanied by dynamic biofuel certificates. To meet these requirements, Implico developed a customised solution for the site and integrated the necessary biofuel bookkeeping functions into the system. The new OpenTAS features simple terminal object management, interface monitoring and optimised automation. Other new features include support for 64-bit operating systems and a more userfriendly interface. n


technology NEWS

September 2012 • TA N K S T O R A G E

Fluoroplastic linings offer advantages to stainless steel PFA lined pumps and valves fixed to road and rail tankers and wagons are helping to ensure the safety of European roads, railways and waterways as the amount of dangerous liquids being carried increases. The standard ‘DIN EN 14432, Tanks for the carriage of dangerous goods – equipment for tanks for the carriage of liquid chemical products – product shut-off and gas exchange valves’ has been in force since January 2011 and all equipment must now adhere to this European standard. Germany’s pump and valve manufacturer Richter Chemie-Technik, part of the US-based IDEX, says its lined valves and sealless magnetic drive centrifugal pumps are becoming increasingly popular when stainless steel and conventional plastics are not sufficiently corrosion resistant for the chemicals carried by these specialist tanker fleets. Richter’s products are suitable for use on the roads, rails and water. The PFA/PTFE fluoroplastic lining is more corrosion resistant than the alternative materials of Duplex, HastelloyR, PVDF, ETFE and even than titanium and nickel. It is an anti-adhesive vacuum resistant lining which is easy for CIP (clean in place) and can be also used for highpurity and solids-laden fluids

Richter’s pumps feature a PFA lining for efficient resistance to corrosion

with a large temperature range up to 200°C. Additionally, Richter says the lead times are shorter and the prices are lower than specialty metal pumps and valves. Colin Simpson, sales director at Richter’s pump UK distributors, Billingham-based Tomlinson Hall, comments: ‘Whilst loading facilities at European chemical plants specialising in the production of highly corrosive liquids, such as sulphuric acid, are very high specification, those at the various discharge points are not always geared up for particular hazardous liquids. As a result, specialist operators are fixing their own self-contained pumps to the trailers and it obviously makes sense to go for the highest specification so that all liquids can be carried.’

Uson and IPE join forces Uson and Innovative Products and Equipment (IPE) have formed a joint venture that will combine Uson’s leak detectors and IPE’s automation systems knowledge. The JV, Uson-Innovative Systems (UIS), says it is a single source turnkey solution for semi-automated and fully automated leak testing applications. Automation systems such as state-of-the-art robotic part handling are tightly integrated with the Uson leak detector. Dave Foran, president of Uson, says, ‘Our customers seeking to automate or semi-automate their NDT leak testing operations will be able to get a turnkey single source custom clean assembly design that is not only tuned to their leak detection needs but is also the most efficient production line design possible. This means lower costs, faster throughputs and faster time-to-market.’ n

Richter’s range of sealless, magnetic drive centrifugal pumps are fitted with PFA lining and are ideally suited when stainless steel and conventional plastics are not sufficiently corrosion-

resistant. Hydraulically optimised with a closed impeller, the pumps are also hermetically tight with no rotary shaft seal and therefore requires minimal maintenance. n

For your storage needs in Europe! Storage of Chemicals and Petroleum products. Contact us! Telephone: +46-31 53 45 00 Fax: +46-31 53 45 08 Email: info@nordicstorage.se

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technology NEWS

TA N K S T O R A G E • September 2012

New hybrid shell design makes Mag-drive pumps more energy efficient Magnetic drive pump manufacturer M Pumps has made what it calls a ‘significant breakthrough’ in the development of its range of sealless, magnetic-drive pumps. Available from Pump Engineering, M Pumps’ magnetically driven, sealless pumps offer leakfree, low-maintenance and reliable pumping and are particularly suited to aggressive, corrosive fluids. However, one inherent disadvantage of magnetically driven pumps is eddy current losses in the containment shell which are caused by the rotation of the magnetic field due to the magnetic coupling, and are inevitable

when the rear containment shell is made from metal. These losses are greater in high pressure pumps which have a thicker containment shell and result in elevated temperatures. The common solution to overcoming the effects of these losses is for pump motors to be ‘oversized’, essentially a more powerful motor compensates for the loss of power. However, the disadvantage of this is that more power means increased energy consumption and therefore reduced energy efficiency. Following extensive testing and development of various options, M Pumps have produced a patent pending rear shell design based upon an inner shell made from Hastelloy C and an outer shell

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M Pumps’ rear shell design reduces eddy current losses by up to 90%

which consists of a carbon filament which is wrapped around the steel outer shell. The result is a composite rear shell construction with the properties of a non-metallic material. Furthermore, extended trials of M Pumps with the new hybrid rear shell have proven resistance to temperatures above 300°C, pressure resistance up to 500bar and a reduction in eddy current losses by up to 90%. Another feature of the new containment shell is the ability for operators to constantly monitor the temperature of the process fluid, without the

need for external devices. This is possible due to a miniature probe which is inserted at the exact level of the magnetic field, between the fibres of the composite and in direct contact with the metal shell. This enables the temperature of the process fluid to be monitored to a high degree of accuracy within the pump without the need for additional devices. The development of the new M Pump rear containment shell results in a significant contribution to reducing eddy current losses and the associated energy costs. n

Outokumpu LDX 2101 receives European approval of material standard Stainless steel company Outokumpu’s material has received approval to use when building pressure equipment. Outokumpu’s flat LDX 2101 <10mm now conforms with the European Pressure Equipment Directive (PED). The PED requires that materials used for pressure equipment must either comply with a Harmonised Standard Material, be covered by a European Approval of Material (EAM), or have particular material appraisal.

For applications fabricated of LDX 2101 in other dimensions than <10mm, a Particular Material Appraisal will show the applications’ conformity with the European Pressure Equipment Directive. Outokumpu LDX 2101, a lean duplex grade developed and patented by Outokumpu, has a low nickel content of 1.5% making its price less dependent on the volatile price of nickel. In addition to good corrosion resistance, LDX is twice as strong as standard austenitic grade such as 304. n


technology NEWS

September 2012 • TA N K S T O R A G E

Emerson acquires ISE Magtech Technology company Emerson has acquired ISE Magtech, a manufacturer of liquid level gauges. The terms of the acquisition were not disclosed.

provide complete level measurement solutions across the process industry. Rosemount Guided Wave Radar provides fluid measurement across a variety of process conditions. ISE Magtech’s Magnetic Level Gauge coupled with the Rosemount Guided Wave Radar creates a complete liquid measurement solution by combining a local visual indication of level with a robust transmitter to support plant operators’ needs for visual and automated system monitoring. n

ISE Magtech designs and manufactures level gauges and associated equipment for use in industrial applications. This acquisition will allow Emerson Process Management to build on its existing portfolio of level measurement products and

MOG reports positive findings for oil sludge processing technology Switzerland-based oil sludge treatment company Man Oil Group (MOG) has reported positive findings following the implementation of its environmental oil sludge processing technology at the TNK-BP refinery in Ukraine. The results of the analysis, which were independently verified, showed that MOG’s Storm-15 machine achieved processing capacity of 15m3/h with a high level of separation. The recovered

hydrocarbons contained 0.2% water and 0.047% mechanical admixters, while the recovered water contained 0.0018% hydrocarbons and 0.0016% mechanical admixtures. The award of the tender was made on 1 July 2011. The TNK-BP refinery (a joint venture between the Russian Tumen Oil Company and BP) officially confirmed that the industrial site was equipped and the Storm-15 equipment installed with additional assembly and mounting of blocks and inter-block joints connected to all utilities and commissioned within the approved time schedule. n

Telvent DTN introduces new solution for downstream industry Global IT solutions and business information services provider Telvent GIT has launched a new dashboard solution to improve the bill-tocash cycle for fuel marketers. The DTN Fuel Admin provides users standardised electronic bills of lading (eBOLs) with near real-time delivery. The eBOLs are accurate and pre-translated, speeding up billing processes and leveraging significant cost savings in an increasingly volatile and weak economic environment. Fuel Admin allows users to receive streamlined, accurate electronic bills of lading. The new solution also improves efficiency and profitability for marketers by providing standardised, easy to read eBOLs. In similar news, Telvent GIT has also released its DTN Guardian3 Terminal Automation Solution, which includes new information management functionalities and security features. Telvent says the new solution effectively optimises real-world oil and gas terminal operations for its customers. Upgrades to the DTN Guardian3 Terminal Automation Solution have resulted in streamlined data handling for all users involved with terminal operations. n

Cat Pumps launches new plunger pump Cat Pumps, a manufacturer of piston and plunger pumps, has introduced a range of extra-low flow rate plunger pumps fitted with single phase motors conforming to CE directives. This 2DX range of pumps provides pressures up to 140bar at low flow rates of between 1.5-8l/min. These CE marked single phase motors conform to the new Non-Voltage Directive and are wound for European 50 hertz supply. The 2DX pumps were originally designed for misting applications such as humidity control, dust suppression and odour control, but Cat Pumps is finding that they are suitable for an increasingly diverse range of applications. Incorporating an integral pressure regulator valve and motor, the 2DX range comes fully assembled and tested. Cat Pumps says this range will be particularly attractive to OEM machine manufacturers who are currently using other higher flow rate triplex plunger pumps. n

The 2DX range of plunger pumps are proving popular with OEMs 47


When you want it done right, call Envent.

technology NEWS

TA N K S T O R A G E • September 2012

USCG CERTIFIED PORTABLE SHIP LOADING VAPOR CONTROL SYSTEMS

TANK, VESSEL & PIPELINE DEGASSING

Degassing and vapor control are our specialty, not a sideline

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Founded in 1992, Envent is the NATION’S #1 PROVIDER of mobile degassing and water treatment services. Check our website: with a TRIR of zero and no NOVs, we own the BEST SAFETY RECORD in the industry, and WE GUARANTEE REGULATORY COMPLIANCE on each of our jobs. Operating from coast to coast, we have emergency crews available 24/7. Envent operates the LARGEST BACT-CERTIFIED FLEET in the industry, including 90 degassing units and 140 mobile scrubbers. We match our equipment to meet specific USCG, AQMD, NSPS, NESHAP, MSS & TAC 115 requirements. For high destruction efficiency (99.9%), our mobile thermal oxidizer units combust vapors at 1400 o F, even in low LEL vapor space. For truck loading, sphere tanks, ship loading and tank refloats, our direct fire vapor combustors SAVE YOU MONEY on every job. Don’t trust your degassing and vapor control to anyone but Envent. CALL US TODAY – and get the PEACE OF MIND that comes from working with the #1 company in the industry.

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September 2012 • TA N K S T O R A G E

technology NEWS

Quest Integrity Group acquires Digital Insight

New website educates users on safety shields

Quest Integrity Group, a company involved in the development and delivery of asset management services and solutions, has acquired Digital Insight – a privately held Remote Digital Video Inspection (RDVI) company based in New Zealand.

Preventing harmful spray-outs and mist formation from failing pipe joints, especially where toxic, corrosive and other dangerous liquids are involved is an important part of plant safety. However, accidents do happen and pipe joint failures have been responsible for a large number of high profile industrial incidents around the world; acid, oil and steam jet spray-outs have resulted in many severe personal injuries, either directly or through consequent fires and explosions.

Under the new ownership, Digital Insight’s current management team will continue to lead the company as part of Quest Integrity’s inspection services. The company’s RDVI technology will be branded as Digital Insight under the Quest

Integrity Group name. All other operational and administrative business functions will be integrated with Quest Integrity. ‘The synergies with our existing business portfolio, particularly in advanced inspection and engineering assessment, align strongly with our core strategic growth aspirations in the energy sector,’ explains Andy Saunders-Tack, VP, AsiaPacific, Quest Integrity Group. Quest Integrity’s solutions consist of technologyenabled, inspection and engineering assessment services and products for companies in the refining and chemical, pipeline, syngas and power industries.. n

Jet Edge launches latest water jet technology

Safety shields, or flangeguards, are recognised as an effective first line of defence when spray-outs occur as they help to minimise the risks. A new website has been launched to raise awareness of the dangers to personnel, plant and the environment. FlangeGuards.com has been designed to inform users about what safety shields do, where they are used and then enables them to identify the most suitable shield for their application. The website also details the four main types of shield available. For example, PTFE shields for any type of acid concentration, lube, fuel and seal oil; PTFE clear shields where the point joint must remain visible and designed for use on the same media as for the standard PTFE shield; PVC shields to suit lower budgets and protection requirements; and stainless steel shields which feature a quick-release connection and for use on the most hazardous liquids. n

Designer and manufacturer of water jet systems for precision cutting, surface preparation and coating removal, Jet Edge, says its latest water jet technology is more energy efficient than competing pumps in the industry. The Eco-Jet Direct Drive Waterjet Pump is a new water jet pump that features an efficient direct drive pump design that consumes up to 40% less electricity than a 37kW hydraulic intensifier pump, but produces the same output. It produces up to 3.78l/min of 3,800bar ultrahigh pressure water for precision cutting, cleaning cutting systems and water jet tools. n

A multi-disciplined service provider of industrial cleaning, specialist environmental and waste disposal services. • Tank & Vessel Cleaning • HP & UHP Water Jetting • Chemical Cleaning • Grit & Shot Blasting • Spill Response • Contaminated Land Cleaning • Forecourt Cleaning • Fuel Polishing • Road and Rail Tanker Cleaning

www.progressivetechnicalservices.co.uk Tel: 02920471553 Fax: 02920451282 The Eco-Jet Drive Waterjet Pump from Jet Edge 49


Technology NEWS

TA N K S T O R A G E • September 2012

L&J Engineering announces new touch panel alarm monitor L&J Engineering, a manufacturer of tank level gauging and tank fitting equipment, has introduced a new touch panel alarm monitor to its line of overfill protection equipment. The MCG 7030, compatible with the MCG 1090 and MCG 1095 level alarm probes, features a user-friendly touch screen LCD panel and, interfaced with multiple tanks, offers the end-user information on probe status, event history, test history, field status and tank details. The new monitor’s touch screen selectable system allows the user to easily monitor the status of their

tanks, probes and alarm controls. The alarm monitor weighs 7.9lbs and can be mounted almost anywhere because of its design (11.82” x 8.1” x 2.17”). Up to 100 separate alarm probes can be monitored by the MCG 7030 using a single, 4 wire data highway. When coupled with an existing gauging or SCADA system, it can function as an alarm data acquisition station. A wireless communication option is also available for the MCG 7030 when used in conjunction with MCG 1095 wireless level alarm probe. This system uses reliable frequency hopping spread spectrum technology with custom encrypted L&J wireless protocol. n

Flare Industries acquires Bekaert’s CEB product line Flare Industries, a combustion and pollution control technology company, has acquired the Clean Enclosed Burned (CEB) product line from NV Bekaert, a global technology firm. The CEB product line consists of a patented technology used in the destruction of industrial gaseous wastes. The technology provides up to 99.99% destruction of VOCs with NOx and CO levels of less than 10 ppm. In addition to these ultra-low emissions, the technology also offers a small footprint, fully automated controls,

and a simple installation. Michael Hainsworth, president and CEO of Flare Industries, says: ‘From conventional flares, to thermal oxidisers, to our new low emissions CEB product, we can now offer our clients a full selection of products to meet their operational needs while they navigate through changing environmental standards and regulations.’ The CEB product will be offered through Flare Industries E.C.G. (Enclosed Combustion Group) which also designs and manufactures conventional enclosed flare systems and thermal oxidiser systems. n

New monitoring technology for oil and gas industry Coltraco, specialists in ultrasonic instrumentation design and manufacture, has a new fixed monitoring system.

L&J’s touch panel alarm monitor is small and lightweight

Permalevel is designed to provide a facility with the means to constantly monitor vital levels inside tanks, including those of the fire suppression system cylinders, powered by 240 or 110V. Unlike fixed weighing systems, Permalevel does not require any heavy investment in infrastructure to weigh the cylinders, and the equipment is available for retrofit. It can be used for any other liquid monitoring requirements such as with most industrial liquids and chemicals in tanks or holding vessels. The monitoring system can be used, among other applications, for fixed fire extinguishing installations in the oil and gas and power industries where it is critical that the contents in fixed fire extinguishing installations are monitored on a continual basis. n

New stainless steel coalescing filter from Norgren Pneumatic motion and fluid control technology company Norgen’s new stainless steel coalescing filter protects sensitive equipment and removes oil from compressed hydrocarbon gas or compressed air used to power operations in corrosive environments such as refineries, chemical plants and offshore oilrigs. The company’s F22H is constructed from 316 stainless steel and its metallic parts meet NACE Standard MR-0175, resisting sulphide stress cracking and discoloration in well-head and other corrosive environments. The half-inch ported F22H is designed with a large convoluted filter element, creating a large surface area 50

to deliver high flow with minimal pressure drop. The filter is equipped with a stainless steel manual drain. It is also available with an automatic drain that opens when a specified liquid level is attained, making it especially well-suited for unmanned satellite platforms. The maintenance cycle of the F22H coalescing filter is extended when used as part of Norgren’s three-stage filtration system. Two general purpose filters placed upstream remove water and particles of 25 microns and then 5 microns before they can contaminate the coalescing oil removal element. The three-stage system comes with brackets for panel mounting to fit into a compact footprint. Both the standalone filter and the three-stage system are available with a stainless steel and nylon service life indicator that shows when the filter element is contaminated. n


TERMINAL NEWS

September 2012 • TA N K S T O R A G E

We know that

onedegree matters.

Prevent Costly Downtime with Chromalox’s Innovative Tank Heaters with Replaceable Element Design

Prevent Costly Downtime Simply remove the old element and insert a new one without ever draining the tank. Ease of Maintenance with Rapid Element Replacement – The Chromalox immersion heater with replaceable elements saves both time and money by providing these significant advantages: No Costly Tank Draining Required – Replaceable elements can be inspected or changed without draining the tank, thereby drastically reducing costs and production downtime. Easy Element Maintenance – Replaceable elements are easily changed by one person with no special tooling required. Simply remove the old element and insert a new one. Allows for Continuous Operation and Storage – Since replaceable immersion heaters can be taken out and repaired without draining the entire tank, you now have the ability to resume operations immediately after maintenance with no relocation of tank contents.

© 2012 Chromalox, Inc.

Quick & Easy Installation – A standard ANSI flange provides a straightforward mating connection with no special or costly modifications required. Third-Party Certifications – Terminal housings are CSA approved. Available for both large and small tanks, the full line of Chromalox tank heaters with replaceable elements was created specifically for critical applications that require continuous operation. LEARN MORE Scan this QR Code to download a white paper which provides more detailed information about the benefits of using tank heaters with replaceable elements, or visit www.chromalox.com.

www.chromalox.com 1.800.443.2640 sales@chromalox.com

xxx


incident report

TA N K S T O R A G E • September 2012

Providing terminals with up-to-date information on fires, leaks, spills and accidents in the oil and petrochemical industry Date

Location

Company

Tri-State 01/08/12 New Martinsville, Petroleum Virginia, US

Incident information Around 2,000 gallons of petrol leaked from one of Tri-State Petroleum’s storage tanks. The tank, which has a storage capacity of 16,000 gallons, began leaking product just after midday. Between 1,500-2,000 gallons escaped before fire fighters were able to contain it. Eleven buildings had to be evacuated as a result of the incident, including six homes and five commercial buildings, one of which was the New Martinsville campus belonging to West Virginia Northern Community College. No one was injured and no fires broke out.

A large tank fire in Rockport is thought to have started after it was struck by lightning.

18/07/12 Rockport, Texas, US

It was reported that three to four tanks were affected by the blaze, with a number of others exposed to danger. An explosion also may have occurred. Thirty-five fire fighters were called to the scene at around 11.15am and remained there for over three hours. During this time an estimated 100,000 gallons of water was used to put out the flames, along with a compressed air foam system. No one was evacuated and no injuries were reported. Gillian Fox, the Rockport Volunteer Fire Department’s fire fighter and public information officer, reported that witnesses claimed a lightning strike hit the area just prior to the tank farm fire.

17/07/12 Canton, Ohio, US

MKE Producing

04/07/12 Galveston, Texas, US

Texas International Terminals

A man was killed after a storage tank, situated at an oil and gas well, exploded. The explosion happened around 9.30am, killing a 19-year-old male who was painting the well at the time.

Two hundred barrels of Cima Energy’s crude oil leaked from a rail car on 4 July. The incident occurred due to a belly valve on the rail car not being closed. The clean-up operation was completed by 10 July and did not disrupt operations at the terminal.

A fire broke out among three oil well tanks after they were hit by lightning.

02/07/12 Kentucky, US

The incident happened at around 10pm and caused one tank lid to fly off, landing on the nearby US 41-Alternate in Webster County. No one was injured and a recent tanker truck pick-up meant some oil had been pumped away from the site, reducing the fire hazard. Heavy rain also helped prevent the flames from spreading. Homes were left without electricity, however, after the explosion damaged some power lines. The US 41-A was closed for around three hours.

29/06/12 Milford Haven, Wales, UK

SemLogistics

Oil that leaked from the SemLogistics tank storage facility is thought to have caused minimal damage to the surrounding area, according to officials from the Environment Agency Wales, as the spill was small and failed to enter any waterways. The SemLogistics site is jointly regulated by Environment Agency Wales and the HSE.

18/06/12 Elk Point, Alberta, Canada

Enbridge

An estimated 230,000 litres of heavy crude oil spilled from energy company Enbridge’s Athabasca pipeline. The oil spilled from a pumping facility, which was then isolated and the pipeline taken out of action. The oil failed to enter any waterways and did not threaten the local wildlife, according to the Alberta Energy Resources Conservation Board. No one was injured or evacuated as a result of the incident.

12/06/12 Bratislava, Winter Port Slovakia

Around 17,000 litres of crude oil leaked into the Danube River and the Little Danube. The incident occurred at the Winter Port’s Mále Pálenisko transshipment terminal. An anchored tugboat was holding the substance, which escaped from a faulty pumping tube. A worker at the terminal noticed the problem early on 12 June as he transferred oil into a vessel, and called emergency services. Nineteen fire engines and 39 fire fighters were called to the scene. A criminal investigation was launched into water and air violations.

02/06/12 Texas, US

Oiltanking

One person died and another injured after an oil storage facility exploded. The blast occurred at around 8.10am after a welding operation went wrong. Both men involved in the incident were contracted workers employed by construction services provider L-Con Constructors.

52


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PROFILE

TA N K S T O R A G E • September 2012

NuStar went public in 2001 – since then it has raised distributions to shareholders for 11 years running. Now the company is saying it could potentially double its earnings in the next few years. Here Danny Oliver, the company’s senior VP of marketing and business development, tells Tank Storage magazine the secrets of its success

NuStar: on a roll I

n a difficult market one might expect storage operators to be reporting lower earnings, especially compared to the booming conditions of just a few months ago. Not so for San Antoniobased terminal operator NuStar Energy, which certainly seems to be bucking this trend. The company announced increased first quarter earnings of $96.8 million (€75 million) compared to $92.9 million for the first quarter of 2011. Much of this can be attributed to its recent success story in Louisiana. In February this year NuStar announced it would be investing $365 million at its St James Terminal to add 3 million barrels of capacity over the next two years, taking the total storage at the site to over 11 million barrels. The first 1.5 million barrels is expected to come online in early 2013. The facility has 30 tanks in service ranging in size from 180,000 barrels to 600,000 barrels and will be adding four more during the expansion phase. This comes just as the company completes its last expansion at the site – it has now more than doubled storage at the 700 acre compound since buying it from Koch Industries in 2006. The facility, located on the Mississippi River, 60 miles from New Orleans, is now one of the largest on the Gulf Coast, rivalling even that of the Department of Energy’s Strategic Petroleum Reserves. ‘It’s not often you see 54

8 or 9 million barrels of new storage capacity being built in the US,’ says Danny Oliver, NuStar’s senior VP of marketing and business development. ‘In fact, it’s almost unheard of.’ All these tanks are already fully leased out long-term and NuStar is already preparing for further growth. The site has the space, so NuStar is looking into building an additional 3 million barrels, which would take around 18 months to complete. And if interest continues, the company will look at buying even more land. NuStar, like many others on the Gulf Coast, is making the most of changes to trade flows. Initially, the operator used the St James Terminal to store and blend imported crude for oil company customers before shipping it to Midwestern refiners. But, about two years ago, the company began working with drillers looking to get crude from the booming Bakken Shale to the cluster of refineries along the US Gulf Coast. It now ships in the crude by rail and delivers it via pipeline to refinery operations.

Long may it continue Oil production in the Eagle Ford increased more than sixfold in 2011 from 2010, and natural gas production more than doubled in the same period. Estimates predict that there is at least another 30 years of production in the region. As a result NuStar is also involved with expanding

Danny Oliver, senior VP of marketing at NuStar

the infrastructure capable of transporting the product to its storage facilities. The company has just opened a new rail yard at the terminal that will enable it to ship in 70,000 barrels of crude daily via rail cars. From July workers have been able to unload multiple cars at once, turning around trains in less than 12 hours for another shipment. The project is still in its rampup stage and this will be increased to 100,000 barrels. NuStar is also looking to build a second unit train at the site, which could potentially be in service by Q1 2013. ‘The unit trains are groundbreaking,’ explains Oliver. ‘We have one of only two worldwide that can unload 120 cars simultaneously. Others unload 30 cars at a time so it takes four times as long.’ In total NuStar expects to spend $400 million over the next three to four years as it develops additional pipeline

infrastructure to carry Eagle Ford Shale oil and gas to Gulf Coast refiners. Starting in Q2 2012, the company will launch a series of major South Texas projects, both repurposing existing pipelines and completing new ones. For example, it has just inked a deal to convert a Port of Corpus Christi dock to bring in more Eagle Ford crude. The company estimates it could take 18 months to plan, permit and complete the project. The company will be required to move 50,000 barrels of oil per day through the public oil dock it already uses, and 40,000 barrels per day through the converted private dock, according to the agreement. Also, at the end of last year NuStar Energy and Valero reached an agreement that will help move South Texas Eagle Ford crude to local refineries. NuStar will convert a current refined products pipeline to crude oil and the line will be used to move oil from Three Rivers to Corpus Christi where Valero has an additional refinery. NuStar will also build 55 miles of a new 12” pipeline that will connect to existing pipeline segments to move crude oil from Corpus Christi to Valero’s Three Rivers refinery. This system came into service in the second quarter of 2012. The terminal operator already had a 2 million barrel storage terminal on Corpus Christi Beach. The company is now building a new inland terminal which will be complete at the end of 2012 with a capacity


PROFILE

September 2012 • TA N K S T O R A G E

Sitting pretty Another area in which NuStar is excelling at the moment is at its St Eustatius terminal in the Caribbean. This is another location where the company has really benefitted from changes to crude flows. ‘About 15 years ago the facility was largely used by Saudis bringing in large VLCCs, breaking bulk and shipping out smaller shipments to the US,’ Oliver explains. ‘Now, much of Saudi’s crude goes east. The situation has reversed, so now the terminal is used to build bulk, and large shipments are heading to China. Demand in China has skyrocketed.’ The biggest influence has come from the new crude finds off the coast of Brazil. ‘Our terminal is in the perfect location to receive shipments, build bulk and ship it out again,’ Oliver explains. ‘The terminal is about as close to Brazil as you can get.’ The facility sees a lot of dynamically positioned vessels, which are very expensive to charter and need to be discharged as soon as possible. There are other facilities in the Caribbean but these are further north, so the transportation costs are much higher. The St Eustatius complex in the Caribbean is NuStar Energy’s largest storage facility, with a capacity of 13 million barrels. The company is expanding here as well and plans to add 1 million barrels of distillate storage at this complex. The project will be in operation by the end of 2012. The site is also fully leased out. These growth plans triggered the island’s first ever ‘Citizen’s March’ in March, but Oliver says the company has been communicating openly with the community and explaining the many positive benefits of any future expansion projects. ‘We have been expanding

the site by small increments ever since it was established,’ he explains. ‘The site has space for further expansions, and we’re looking into this. There is the potential to build as much as 12 billion barrels on the island.’ For now there are 56 tanks in service and the expansion will take this up to 60.

Hotting up in Canada NuStar’s only terminal in Canada is a 7.6 million barrel facility in Nova Scotia. It is the furthest north

facility,’ Oliver explains. This would require all the tanks to be heated though, so investigations are ongoing as to the cost of the additional equipment. If it goes ahead the project would take about nine months to complete. This site is another that has the space for further expansions, should customers request additional capacity.

Future outlook As icing on the cake, NuStar has also just made Fortune magazine’s ‘Top 100 Best

About 15 years ago the facility was largely used by Saudis bringing in large VLCCs, breaking bulk and shipping out smaller shipments to the US – the situation has now reversed Danny Oliver, senior VP of marketing, NuStar

terminal in North America that is ice-free. The site comprises of 37 tanks, all of which are completely utilised, mostly by shipments from Canada’s oilsands. ‘We are looking at an expansion project that would bring pure bitumen to the

of 600,000 barrels. The company’s CEO Curt Anastasio admits he was a skeptic when the Eagle Ford boom first began in 2008. ‘I’m happy to say I was wrong,’ he explains, saying that this is ‘the real deal’.

Companies to Work For’ for the fourth year in a row. The company is recognised for paying 100% of employee health care premiums, having a no-layoff policy, and matching 401(k) contributions up to 6% of pay. ‘Employees are our number one asset,’

Oliver explains. ‘I know most companies would claim this, but we’re very proud that we’ve never had a lay off in our history.’ NuStar has 84 terminals worldwide with 96 million barrels of capacity. The company is in the fortunate position whereby all of its terminals have a utilisation rate in the mid-high 90s. ‘There are two types of storage operations,’ Oliver explains. ‘One that provides storage capacity for those trying to benefit market contango. And the other type is those providing storage where it’s always needed. Luckily for us we largely fall in the latter category.’ Whereas some storage operators see renewable fuels as a big potential earner, NuStar does not share this view. ‘We provide renewable fuel storage where customers request it, but we don’t chase the business,’ Oliver explains. ‘All our racks can handle and blend biofuels, but of our 96 million barrels only 2 million of these are in service for biofuels today.’ NuStar’s Eagle Ford expansions have the potential to double the company’s earnings in the next two to three years. Unsurprisingly NuStar says this region will remain its main focus for the time being. n

NuStar is adding 3 million barrels of capacity to its St James terminal in Louisiana 55


PAGE HEADER

TA N K S T O R A G E • September 2012

TAnk STorAge

SINGAPORE EXPO 11 - 12 DECEMBER 2012

ASIA

ThE LEADING EvENT For ThE ASIAN TANk STorAGE SECTor Consisting of a two-day Conference and Exhibition, Tank Storage Asia provides the opportunity for terminal operators, traders, regulators as well as equipment suppliers to come together to network and do business in this vital region.

The exhibition provides an excellent sales and marketing platform for manufacturers and suppliers of everything from tank design, construction and maintenance, through to innovations in automation, certification, inspection, loading equipment, metering, measuring, pumps and a lot more.

The Conference will attract terminal and pipeline operators, as well as traders, analysts, regulators, renewable energy producers and technical expert. They will come together to discuss the key issues impacting the sector.

Official Publication

Follow us on Twitter @StocExpo

Media Partners

Join the StocExpo and Tank Storage Events group on LinkedIn Like our StocExpo and Tank Storage Events Facebook page

For more information on exhibiting at Tank Storage Asia, please contact: Sharé Mason – International Sales & Marketing Manager T: +44 (0)20 8843 8819 F: +44 (0)20 8892 1929 E: share@stocexpo.com 52

www.tankstorageasia.com


September 2012 • TA N K S T O R A G E

tank terminal update

Tank terminal update – Canada plant plant update update biofuels biofuels

PT Perkebunan Nusantara PT Perkebunan Nusantara

Vichitbhan Group Vichitbhan Group

Location Indonesia, Medan Location Thailand Location fuel Indonesia, Medan Location fuel Thailand Alternative Biodiesel Alternative Biomass Alternative Biodiesel Alternative Biomass Feedstock fuel Palm oil Feedstock fuel Palm oil Cancen OilPalm and oil Astra Energy Canada TransCanada Feedstock Feedstock or expansion Palm oil Construction or expansion Construction Construction Construction Location Location Alberta Construction or expansion Hardisty, Construction Construction Construction Completion date Q4 2009Alberta Investment or expansionHardisty, THB 1 billion (€20 million) Products Clean oil Product Crude oil Completion date Q4 2009 Investment THB 1 billion (€20 million) ompletion date By 2011 3 Capacity 450m Capacity 2.6By million ompletion date 2011 barrels Pure Biodiesel/day Construction/expansion/ Construction Construction/expansion/ Cancen Oil will acquire a 100% Pure Biodiesel Location Thailand interest in Astra Energy Canada’s acquisition acquisition Location fuel Thailand Alternative Biodiesel crude oil terminal and the blending Project start 2013 Vichitbhan Group Alternative fuel Biodiesel Capacity 300,000 litres a day facility Project end End Group of 2014/early 2015 Vichitbhan Capacity 300,000palm litresoila day Feedstock Crude Project start May 2012 (announced) Investment $275 million (€220 million) Location Thailand Feedstock Location fuel Thailand made the decision to go Construction or expansion $5Crude Construction Comment Investment millionpalm cashoil(€3.9 million) TransCanada Alternative Biogas Constructiondate or expansion Upon Construction Alternative Biogas Completion June 2009 completion ahead with Comment of the transaction, Feedstock fuel Palm oil the build after identifying Completion date June 2009 Feedstock or expansiona strong Palm oil Cancen plans to enhance the facility to demand from local producers Construction Construction Construction Riverinatreat Oils waste and BioEnergy oil and handle wastewater. the new infrastructure Investment or expansionfor Construction THB 300 million RiverinaCapacity Oils andwill BioEnergy Investment THB 300 million remain the same ompletion date By 2011 Location Australia, Wagga Wagga Pipeline ompletion date Trans Mountain By 2011 Location fuel Australia, Wagga Wagga Alternative Biodiesel Location Sherwood Park, Alberta Alternative Biodiesel Capacity fuel 170,000 tonnes a year Construction/expansion/ Construction Capacity 170,000 Feedstock Oilseed tonnes a year acquisition Feedstock or expansion Oilseed Construction Construction Vichitbhan Group Designer/builder CB&I Construction or expansion Construction Vichitbhan Group Project start date September 2009 Project start April 2012 (construction contract Location Thailand Project startdate date September 2009 Completion October 2010 Location Thailand awarded to CB&I) Alternative fuel Biogas Completion date October 2010 Comment Edible oils to be produced in the rst Alternative Biogas Kinder Morgan Project end fuel 2013 Feedstock Palm oil Comment Edible oils to be produced in the rst phase, biodiesel in the second Feedstock oil was valued in excess Investment or expansionThePalm contract Construction Construction Location Strathcona County, Alberta phase, biodiesel in the second Construction or expansion Construction of $55 million (€44 million) and Investment THB 160 million Capacity 1.2 million barrels Roxol Bioenergy Investment THB 160 includes themillion design, fabrication and ompletion date By 2011 Expansion with the addition of 1.2 Construction/expansion/ Roxol Bioenergy ompletion date By 2011 of storage tanks and construction Location Philippines, acquisition million barrelsLa of Carlota storageCity at the Location fuel Philippines, La Carlota City associated works Alternative Ethanol Edmonton terminal, bringing the total Alternative Ethanol Capacity fuel 100,000 litres a day storage capacity to 3.6 million barrels Capacity 100,000 litresand a day Tundra Energy Marketing Feedstock Sugarcane molasses Project start 2011 Feedstock Sugarcane and molasses Construction or expansion Construction Project end 2013 Location Cromer, Manitoba Construction or expansion $284 Construction Designer/builder KBK Chem-Engineering Investment million (€227 million) Products Oil products Designer/builder KBK Chem-Engineering Project start date 2008 Morgan Comment Kinder is also in talks with Capacity 410,000 barrels Project startdate date 2008 Completion Q1 2010 other companies looking at the Construction/expansion/ Expansion, which includes the Completion date Q1 2010 Comment One of the features the plant is possibility tokey expand theofterminal acquisition construction of two 205,000 barrel Comment One ofso the keytreatment of the plant a wastewater system thatis further, that itfeatures can store 6 million storage tanks This list is based on information made available to Biofuels International magazine a wastewater treatment systemwhich that barrels converts pollutants into biogas Project on information Q4to2013 This isend based made Biofuels magazine at thelist time of printing. If you would like available updatetothe list withInternational any additional plant converts pollutants into biogas which can be used as fuel at offorprinting. If you the would toany update the listterminal with anyinformation additional plant future issues, please email luke@biofuels-news.com This list is based on information made available to Tank Storage magazine at the time of printing.information If the youtime would like to update listlike with additional for future can be used as fuel information for future issues, please email luke@biofuels-news.com issues, please email keeley@horseshoemedia.com

TANK STORAGE magazine magazine

March 2012 • TA N K S T O R A G E

fire safety

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57


Tank storage in Canada

TA N K S T O R A G E • September 2012

Brian Dunn tracks the growth in oil sands production as well as the latest additions to pipeline infrastructure in a bid to determine where future potential lies for the region’s terminal operators

Canada’s oil output

to double by 2030

58

pipelines are now under way and other transportation projects, including pipelines and rail, are proposed to connect the growing oil supply with consumers. In May, energy distributor Enbridge announced a suite of major additions to its liquids pipelines infrastructure, totalling C$3.2 billion (€2.58 billion). The company has secured commercial support to proceed with additional Eastern Access projects, including an 80,000 barrel per day (bpd) expansion of its Toledo Pipeline and a re-reversal

Enbridge and its partner, Enterprise Products Partners, marked a significant milestone with oil first flowing 19 May 2012 on the reversed Seaway Pipeline for delivery to the US Gulf Coast. ‘We continue to make excellent progress in establishing a new and much needed corridor from the Chicago area to the US Gulf Coast refining market,’ says Daniel. ‘With the completion of the first phase of the reversal and expansion of the Seaway Pipeline, we’ve now added 150,000 bpd of new capacity

Even if Keystone XL, TransMountain, Northern Gateway and the tentative TransCanada West Coast Line were all built, there would still not be enough pipeline capacity to handle planned growth through 2020

of its 240,000 bpd line from Westover, Ontario to Montreal. Enbridge also expects to proceed with supporting expansions of the US mainline system between Flanagan, Illinois and Sarnia, Ontario and expansion of Line 67 (Alberta Clipper) and Line 61 (Southern Access). ‘Our Eastern Access projects complement our previously announced Gulf Coast Access projects in expanding access to new markets in North America for growing production from Western Canada and the Bakken (region of North Dakota),’ says CEO Patrick Daniel.

P

roduction figures emanating from Canada’s oil patch suggests an insatiable spending spree. Crude oil production will more than double to 6.2 million barrels per day by 2030 from 3 million barrels per day in 2011, according to the 2012 forecast from the Canadian Association of Petroleum Producers (CAPP) in Calgary. ‘Resurging growth in Western Canadian conventional oil production and new oil sands investments are driving the positive outlook,’ says Greg Stringham, CAPP’s VP of markets and oil sands. ‘Canadian oil is clearly on the global stage and this forecast growth will put Canada in the top three or four oil producers in the world.’ Conventional production is increasing because new technology allows industry to produce oil from formerly uneconomic resources, reversing a significant declining production trend over the last decade. Oil sands growth reflects Canada’s supply potential and growing international demand for oil. The growing oil supply is aimed at markets in eastern Canada, which currently imports more than half its oil from offshore foreign suppliers, traditional and new markets in the US (displacing imports from less secure foreign sources) and growing markets in Asia. Stronger growth in both conventional oil and oil sands supply means tighter availability of pipeline capacity in the next few years and an increased urgency for timely expansions and new capacity to markets. New

out of the Cushing (Oklahoma) hub and we expect to ramp this up to 400,000 bpd by the beginning of 2013. ‘Our Flanagan South Pipeline Project and existing Spearhead Pipeline System, combined with the planned twinning of the Seaway Pipeline, will bring total capacity from Chicago to the US Gulf Coast to approximately 850,000 bpd by mid-2014, with low cost expandability beyond that. This will help to relieve bottlenecks arising from an unprecedented growth outlook for North American oil production, reduce price discounts for producers

and further reduce United States dependence on overseas imports.’ But Enbridge’s proposed C$6 billion Northern Gateway pipeline between Edmonton and Kitimat, British Columbia is mired in provincial squabbling, with B.C. Premier Christy Clark vowing the line will not run through her province if Alberta does not negotiate over the sharing of economic benefits. And all production forecasts might have to be scaled back due to a lack of transportation facilities, according to a report by analyst Andrew Potter of CIBC World Markets. ‘Even if Keystone XL, TransMountain, Northern Gateway and the tentative TransCanada West Coast Line were all built, there would still not be enough pipeline capacity to handle planned growth through 2020.’ CIBC estimates suggest that producers will have to scale back production forecasts anywhere between 1.7 million bpd and 2.4 million bpd if market access is restricted. But the biggest news coming from the oil patch so far this year was that Nexen has agreed to a $15.1 billion (€12 billion) takeover by Chinese oil producer CNOOC, the most important acquisition to date by an Asian firm in Canada. Nexen is Canada’s 12th-largest energy company, producing 213,000 barrels of oil equivalent per day. The deal still has to be approved by Nexen shareholders. Cenovus Energy is on target to produce 500,000 barrels a day by 2021, a five-fold increase based on second quarter results of this year when production reached


Tank storage in Canada

September 2012 • TA N K S T O R A G E about 80,000 barrels a day at its oil sands operations and 75,000 barrels a day of conventional oil. The new long-term production target added about 50,000 barrels a day of oil sands production, up from the previous target. The company says it supports Keystone XL, Enbridge’s Northern Gateway, Kinder Morgan’s proposed TransMountain expansion and any other pipeline proposals that will open up new markets. ‘Cenovus takes a portfolio approach to transporting its products to market, including a number of pipeline options and other options such as rail,’ says Brett Harris senior advisor for media relations. In August, TransCanada was selected by the Foothills partnership to build, own and operate a 90km pipeline to run between the Foothills oil sands mine site and the Voyageur upgrader north of Fort McMurray at construction costs of about $660 million. And a Texas judge has ruled against a landowner who wants to prevent TransCanada from building a pipeline across her land as the company tries to kick-start the stalled $2.3 billion southern section of its Keystone XL pipeline project. But the spending spree that has gripped the oil sands at the rate of $1 billion every two and a half weeks, according to CAPP, may be slowing down as some companies trim investment budgets. Canadian Natural Resources, for example, announced in August it will cut capital spending by $680 million or 10% this year, noting that rising costs make new projects more vulnerable at current oil prices. Two weeks earlier, Suncor Energy announced it was scaling back its plan to reach production of a million barrels a day and is reviewing its $1.75 billion joint venture deal with France’s Total E&P. ‘There is still a lot of capital spending, but it’s not going as far with rising costs,’ says Michael Wojciechowski, senior refining analyst at Wood Mackenzie Research and Consulting in Houston. ‘Oil is back near $95 for WTI (West Texas Intermediate), but I think that more companies are approaching spending with caution as global economic concerns linger.’ A well in Western Canada

Benefitting from biofuels There are 15 operating ethanol plants in Canada with a production capacity of over 1.8 billion litres a year, according to the Canadian Renewable Fuels Association. There are also two ethanol plants under construction with a capacity of 75 million litres a year in addition to four demo/pilot plants. There are at least another three plants in development that have not yet started construction which are expected to have a capacity of about 500 mly. For biodiesel there are 13 plants listed as operational. Of those only four or five are in regular operation and producing about 125 mly. There are at least four facilities under construction that could produce 500 mly when they are all completed. today costs an average of three times as much to drill and complete as it did six years ago, from $1.3 million to $3.6 million per well, according to CAPP and ARC Financial Research.

Westway Terminals of New Orleans has one Canadian operation at the Port of Hamilton, Ontario, near Toronto, capable of handling a wide range of materials such as tallow, biodiesel and food grade products. The Hamilton facility has onsite lab services along with

With the growth of biodiesel in North America, Gingras sees opportunities to increase Westway’s liquid fertiliser business along with vegetable oils. ‘The market is stable with storage at its peak. Ten years ago, it was at its lowest point,’ he adds. Vopak has commissioned two studies for expansions at its facilities in Montreal and Hamilton of over 200,000 bbls, according to Len Daly, commercial director at Vopak North America in Houston, Texas. ‘We are still working hard to come up with the right package.

in-tank blending abilities. The terminal has 62 tanks (39 heated), ranging from 39,606 gallons to 2,641,506 gallons with a total capacity of 16,042,399 gallons which handle vegetable oils, chemicals, wax, liquid fertilisers and biodiesel. ‘We see growth opportunities with the Port of Hamilton and we’ve requested an acre of land from them,’ says Michel Gingras, regional manager for Canadian operations. ‘We’ll maybe add one or two tanks with a capacity of between 4,000 and 5,000 million litres, depending on customer specifications.’

IMTT’s Quebec City terminal has 56 tanks with capacity ranging in size from 630 through 217,000 barrels. The terminal has been operating at close to full capacity, but was keeping some space open, because it was negotiating three major contracts last year which would add between 270,000 to 1 million barrels of new capacity, according to manager Marc Dulude. ‘Our strategy worked well and we have been able to book major long-term contracts without having to build (by re-allocating tanks between clients). We are still in the process of finalising

Growth opportunity for terminals

additional major long-term contracts that will result in the construction of 980,000 bbls of new storage capacity. The market has been good for us for the last five years.’ The terminal continues to benefit from the closing of Shell’s 130,000 barrel a day refinery in Montreal two years ago which has created a lot of opportunity for the Quebec terminal, with more volume coming through its tanker berths than normal, says Dulude. ‘We’re also very involved in exporting biodiesel to Europe, which is becoming more and more important to us. There is a constant increase in white oil and biodiesel exports and we’re working on how we can take advantage of backhaul business from Europe.’ In addition, the terminal has completed a new stateof-the-art truck rack and new dock lines that are providing a 33% increase pumping rate for clean petroleum products. Servitank is another major terminal operator in the Province of Quebec with facilities in Trois-Rivières, Bécancour and Saguenay, which provides services for the storage of chemicals and industrial liquids. The Trois-Rivières terminal has 35 tanks ranging from 400 to 2,500m3 with a total capacity of 270,000 mly, followed by Bécancour with 14 tanks between 1,500 and 5,000m3 with a 50,000 million litres a year (mly) capacity, while Saguenay has five tanks ranging from 300 to 6,000m3 and a total capacity of 19,500 mly. The company is just completing the construction of two 5,000m3 tanks in Bécancour and is in discussions regarding additional storage capacity that will be finalised in 2013. It says it will need to build more infrastructure as it is running at capacity. In terms of changes in trade flows, Servitank’s main business is specialised products, but it plans to add petroleum products to its mix. And some of its tanks are used for biofuels storage, a market the company wants to pursue, says Servitank’s VP Sylvain Desbiens. ‘The overall outlook is very encouraging and we see a lot of growth potential in the very near-term.’ n 59


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TA N K S T O R A G E • September 2012

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safety

September 2012 • TA N K S T O R A G E

Companies cannot afford to wait for a major mechanical integrity failure to occur in order to uncover the systemic issues within the organisation that lead to the potential for such a major incident

Evaluating and learning

from near-misses O

ne finding common to most investigations of major failures is that they are preceded by a series of smaller incidents or near misses, which, for a variety of reasons, not the least of which is dumb luck, do not result in a high consequence event. These precursor incidents are opportunities to investigate and discover the organisational causes and correct these to prevent major incidents.

Ineffective incident investigations A common key root cause finding in most major failures or accidents is a lack of an effective reporting and investigation system for incidents. A look back at a few high profile failures and the investigation results reveals this common theme. The investigation1 of the Buncefield oil storage depot explosion and fire on 11 December 2005 showed there were a number of incidents prior to the major failure. The immediate cause of the explosion and fire was the failure of both an independent high level switch (IHLS) and the automatic tank gauging system (ATG). The servogauge on the ATG had stuck which caused the level gauge to ‘flatline’ and therefore not indicate the rising level in the tank. The ATG servogauge had stuck 14 times in the three months prior to this major failure. The root cause of the ’sticking’ was never properly investigated or determined. The Chemical Safety Board

(CSB), in its investigation2 of the BP Texas City Refinery ISOM explosion in 2005, found deficiencies with the incident investigation system as one of the root causes. In the 10 years prior to the 23 March 2005 ISOM explosion, there was documented evidence of eight serious ISOM blowdown drum incidents. In two of the prior incidents, fires occurred; in six, the blowdown system released flammable hydrocarbon vapours that resulted in a vapour cloud at or near ground level but did not find an ignition source. None of these prior incidents were properly investigated to reveal the contributing and root causes.

Recommended practice The API is drafting a new recommended practice to highlight the value of investigating low and medium consequence pressure equipment integrity incidents. This new document is API RP 585 Pressure Equipment Integrity Incident Investigation. The intent is for organisations to learn from investigating lower consequence incidents and correct systemic causes before they are allowed to contribute to a major incident. This new recommended practice is being developed by a refinery and petrochemical industry task group under the direction of API’s Committee on Refinery Equipment. Work began in 2010 with the intent of developing a document for educating inspection and mechanical personnel on good practices for recording

and investigating pressure equipment integrity incidents. To date the document has been through two ballot cycles and will go through a third ballot prior to publication. The ballot process allows for the task group members to comment, object or change the document. It is anticipated that the document will be published by late 2012 or early 2013.

Highlights of API RP 585 This new recommended practice focuses on pressure equipment integrity incidents. The primary focus is providing guidance on how investigating and determining root causes of small failures and/or near failures or unexpected events of pressure equipment may improve mechanical integrity and avoid catastrophic failures. It also provides some guidance on supporting large investigations that are led by others in the organisation. The document describes three levels of investigations: the low consequence incidents would normally have a level 1 investigation, the medium consequence a level 2 and the high consequence a level 3. The primary differences in the investigation levels are the number of people involved in the investigation and the depth of the analysis to determine causes. The main focus of the document is describing how to conduct level 1 or level 2 investigations. The document describes good practices on collecting evidence and analysing the evidence to determine the causes. It

also provides some guidance on training for personnel in the organisation so when incidents occur personnel are ready to respond. Many pressure equipment incidents result in damaged components or parts that require failure analysis. A protocol for handling these components and conducting the failure analysis is also presented. The document provides a number of example forms and reporting formats. There is an example form that can be used to record information on all pressure equipment integrity incidents. There are example final report forms for each investigation level. Provided is a listing of generic evidence to gather that could be useful as a starting point to help determine all the evidence or information to collect. Key questions to ask eye witnesses are also provided. A form is also included that can be used to request a failure analysis to ensure all steps in the process are documented. Once published this document will be a good reference and basic starting point for implementing more incident investigations regarding pressure equipment integrity issues.

Owner/operator programmes Once API 585 is available it will provide a useful resource for personnel in the industry who are struggling with improving their incident investigation programmes. Rafael Rengifo, Phillips 66’s tank integrity initiatives 63


safety

TA N K S T O R A G E • September 2012

Actual broken step and schematic showing the detail of the bolted joint

lead responsible for tank mechanical integrity improvements and sustainability, is taking steps to improve its near-misses investigation programme. He has pondered the dilemma of reactive versus proactive programmes and has asked himself the following questions: • Do we necessarily need failures in order to learn? • Are severe incidents the only way to learn about complex problems and motivate change in behaviours? • Do we need severe incidents to motivate the industry community to analyse complex problems? • How much can we learn based on proactive investments in reliability programmes and near-miss evaluations? • Would that learning be enough to keep us away from severe incidents? • In such a dynamic environment do we really know ‘real time’ the criticality and risk of our assets? • Do we really know where, when and how much to investigate? • We heard about resource constraints, but if we had unlimited resources how much would we dedicate to proactive near-miss evaluations? In order to manage learning from incidents and nearmisses Phillips 66 has implemented an incident investigation and reporting standard. The purpose of this standard is to ensure 64

incidents and near-misses are properly reported, properly investigated, based upon risk, with root causes identified, corrective actions that address root causes implemented, and results shared, as necessary, to prevent recurrence. All incidents and near misses are reported and risk ranked and then initially evaluated at the local site where it occurred. The focus is on increasing the reporting and investigating of near-miss incidents. High severity nearmisses are being reported more often and the numbers that are investigated have been increasing in the last several years. The following example shows the value of investigating near-miss incidents. A tank operator came across this broken tank stair step (above). Instead of just ignoring the problem or just fixing this one step, an

Picture of failed bolt

investigation was required. A mini-root cause analysis was conducted using Failsafe’s ROOTS3 methodology. The results of the investigation determined a list of susceptible tanks, only 25% of the in-service tanks require mitigation actions, based on the following attributes: active tank, low diameter (<29), riveted, built before 1955, corrosive industrial environments, freezing temperatures. The investigation determined the physical cause of the step failure to be fatigue in a loose bolted joint. The contributing causes are external corrosion and crevice corrosion in an aggressive industrial environment. Also ice expansion in a low temperature environment caused by water between the step support angle iron and the ladder support frame. The human cause was determined to be: ‘We didn’t recognise

the risk that this particular design generates after a long service life’. The systemic cause is: the current tank inspection standards and codes are focused on pressure parts containment and environmental impact. This example shows the payback in conducting investigations on nearmisses, and addressing systemic issues beyond the immediate failure. Rafeal says there are additional improvement opportunities and plans on developing a unified near-miss evaluation best practice with emphasis on lower severity incidents. For example, emphasise and formalise near-miss evaluations as one of the core elements of Phillip 66’s reliability programmes and HSE Metrics. He believes the company has opportunities around better definition of near-miss triggers and plans to train a critical mass on reliability basis and RCA proactive methods. Marilyn Shores, who handles the storage tank programme for Explorer Pipeline, points out that smaller, regional companies (without the large corporate staff and investigation teams) can also use incident reviews to improve procedures and prevent accidents. Explorer makes a distinction between a near-miss and an incident with no consequence and both are reported. For example, if a hydraulic hose separates and thumps someone’s hard hat, it is now classified as an incident with no consequences rather than a near-miss.


safety

September 2012 • TA N K S T O R A G E Contractor incidents are also tracked and affect the company incentive compensation plan as severely as if they were incurred by Explorer personnel. Explorer also provides training to help contractors recognise near-misses. For Explorer, all incidents are documented by HS&E personnel in the district where the event occurred. A monthly review of the incidents is conducted by a team, consisting of Explorer’s president, operations and product movement management, all district managers and HS&E members, and other key personnel. Any resulting project or procedural changes are broadcast throughout the company. Some of the recent procedure changes within Shores’ tank programme that have resulted from these incident reviews are: • Escorted deliveries: All vehicles larger than a pick-up truck will require a foot escort while on company property. This was incorporated due to the

number of minor incidents that indicated either a lack of attention to the task of driving or the perceived misunderstanding of the consequences. • Cribbing: All floating roofs are cribbed prior to cleaning the tank. This step was incorporated after observation of corroded floating roof legs that were exposed after the tank had been cleaned. • Vapour free: Tapping and purging all sealed systems. A couple of near-miss incidents were reported when vapours or product started seeping from a pontoon or ladder leg after the mechanical crew had moved onto the job. While cleaning crews had completely cleaned the free product from the tank, some product had been trapped in the sealed system. All such areas are now tapped and purged before the cleaning crew leaves the site. • Testing the attached piping: Sampling the environment in approaching piping. Due to the design of

a system, with a manifold valve and a shell valve leading to a centre suction/ discharge line in the middle of the tank, constant monitoring of this vapour space is required. These two valves with the tap in between them provides a distinct ‘block and bleed’ combination. When vapours are indicated at this port, it is a precursor to a failure of this isolation system. The shell valve is excavated and removed to ensure that no vapours enter the tank. • Secondary containment: Plastic is placed under all stationery equipment, in particular rental equipment, to prevent spills. Even though the consequence of a drip from this equipment is minor, Explorer does not tolerate any product hitting the ground. The explanation that it was rental equipment and did not belong to the contractor was not a satisfactory answer, either. Therefore, Explorer Pipeline creates its own containment system for these items.

Continual improvements The same underlying systemic causes of major failures can be discovered by properly investigating near failures or near-misses. An active and effective incident reporting and investigation programme for mechanical integrity incidents is vital for improving process safety. Once published API RP 585 will be a good resource for organisations and mechanical integrity personnel to evaluate their incident investigation programme and make improvements. n *The opinions expressed in this article are those of the authors, and not API’s.

For more information:

This article was written by Virginia Edley, Founder of SBK Consulting, Rafael Rengifo, Tank Integrity Initiatives Lead at Phillips 66 and Marilyn Shores, Senior Engineer at Explorer Pipeline.

References:

1. COMAH, Control of Major Accident Hazards, Buncefield: Why did it happen?, 2011, http://www.hse.gov.uk/ comah/investigation-reports.htm 2. US Chemical Safety Board, BP America Refinery Explosion, Final Report Released on March 20, 2007, http://www.csb.gov/investigations 3. Failsafe Network Inc, www.failsafe-network.com

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TA N K S T O R A G E • September 2012

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September 2012 • TA N K S T O R A G E

Overfill prevention

The release of API 2350’s fourth edition serves as a reminder that preventing tank overfills and spills by using appropriate technology is something that cannot be ignored

Combining accuracy

with safety

A

storage tank overfill can occur during product delivery or due to internal pressure build-up. Both recurring small product spills and sole large overfills can result in severe safety, environmental, monetary and violation consequences. Phillips 66, a global leader in the refining, marketing and transporting of crude oil and petroleum products, has a storage terminal located in Pasadena, Texas. With 22 aboveground storage tanks and four sump tanks, the Phillips 66 in Pasadena has its product (petrol, kerosene and diesel) transferred through pipeline to be stored at its facility. For Phillips 66, having reliable level gauging technology with overfill protection is not only vital, but essential for its day-to-day operations. US-based level gauging and overfill alarms specialist L&J Engineering helps facilities stay in compliance with industry regulations and recommendations. To ensure its facility conformed to overfill regulations, Phillips 66 installed L&J Engineering’s MCG 1090 High Level Alarm Probe and MCG 7000 Alarm Monitor independent overfill protection system. Phillips 66 has an MCG 1090 High Level Alarm Probe installed at all of its aboveground storage tanks and on its sump tanks. The key components of the MCG 1090 features a displacer hung from a spring loaded shaft with a magnetic tip.

MCG 1090 High Level Alarm Probe

MCG 2000MAX Transmitter mounted to a mechanical float and tape gauge

Phillips 66 storage terminal in Pasadena, Texas

As product is moved, the weight of the displacer moves causing the spring to raise the magnetic shaft. This would, in turn, trip an alarm switch that would relay a digital signal to the remote MCG 7000 Alarm Monitor System. What makes the MCG 1090 unique is its integrated solenoid coil, which provides complete self-testing capabilities. This self-testing feature can be triggered remotely, providing the operator with a means of testing his high level probes without ever leaving the control room and without the risks of testing on top of the storage tank. ‘The L&J Engineering system not only serves as an accurate overfill alarm but also delivers the independent overfill protection that we were looking for,’ Noel Cordova, Phillips 66 I&E technician, says. ‘All of our tanks are fitted with a MCG 2000MAX Transmitter and an MCG 1090 High Level Alarm Probe to make sure we have reliable level detection and overfill protection. The benefit of the MCG 1090 is its selftest feature. We have our alarm monitor set to test the probe and its communication every morning and we have all of that data communicate directly to our control room.’ To monitor the MCG 1090 Level Alarm Probes remotely, an MCG 7000 Alarm Monitor system is used. The MCG 7000 offers automatic self-checking of the alarm probes, printouts and discrete outputs for 67


Overfill prevention

When accurate product levels make the difference between hazard and plant safety, dependable overfill prevention technology is vital at a facility

float and tape gauges at all of its tanks to monitor level, Phillips 66 has installed the MCG 2000MAX Transmitter on to all of its mechanical float and tape gauges. Designed to mount directly onto a mechanical tank gauge, L&J Engineering’s MCG 2000MAX Transmitter uses absolute magnetic encoding

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horns, emergency shut-off, as well as an optional host communications port. So in the event of product levels reaching a high set point, the operator will be immediately notified to take appropriate action from the control room. Featuring all requirements for an independent alarm system, the MCG 7000 includes an optional battery pack and charger to operate the system during power outages. Up to 100 separate alarm probes can be monitored by the MCG 7000 using a single, 4 wire data highway. The system uses an 80 character LCD to provide immediate alarm data and a paper tape printer to automatically print alarms as they occur and for output of a daily event log. Originally using standard

TA N K S T O R A G E • September 2012

to accurately convert level measurement from the connected tank gauge into a digital reading. This allows a plant to integrate float and tape gauging technology into its inventory management system. ‘We have benefitted greatly from installing the MCG 2000MAX. The transmitter

has a reduced number of parts and provides greater reliability,’ Cordova says. Just as with the previous generations of MCG 2000s, the MCG 2000MAX uses no batteries and operates as an absolute encoder, which does not require recalibration after a power failure. When power is restored, the MCG 2000MAX is unaffected and will accurately reflect the current level. When accurate product levels make the difference between hazard and plant safety, dependable overfill prevention technology is vital at a facility. By combining reliable level gauging devices with an independent overfill protection system, Phillips 66 ensures that it maintains safe product levels with accurate data. n


September 2012 • TA N K S T O R A G E

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TA N K S T O R A G E • September 2012


CORROSION

September 2012 • TA N K S T O R A G E

Tests carried out on tanks with and without a new method of mitigating corrosion on the underside of a tank roof indicate that service life can be increased from six to 30 years

Mitigating corrosion S

torage tanks can take a beating from corrosion over time. The vapour spaces in cone roof tanks and some floating roof configurations are left to the mercy of the product that they contain. There are limited options generally available

vary widely depending on the product being contained, chemical compositions and application conditions. As an example, a distillate tank vapour space atmosphere can contain the following corrosive contaminants (maximum volume %):

Tank roof interior surface

This can create high corrosion rates (CR) as is shown below

Type of corrosion:

General

Pitting

Galvanic

Crevice

CR (mm/year):

0.1-0.5

0.5-5.0

0.2 – 3.0

0.3-8.0

New corrosion protection system Section of tank roof showing interior areas without coating

to protect these expensive roofs, such as: coatings, alternative metals such as aluminum or stainless steel, and active gas blankets. For cone roofs, coatings are the most common corrosion protection method, but are often the least effective as there are many steel surfaces that are all but impossible to effectively cover. A roof which is susceptible to underside corrosion from the vapour space environment is likely to have one or more of the following issues: • A shorter service life • May result in an environmental or safety hazard • May have product contamination from corrosion products and/or rainwater • Unscheduled downtime and unplanned maintenance costs.

Chemistry The corrosion environment inside the vapour space can

• SO2 – 5%, CO2 – 30%, H2S – 10%, Cl – 5%, O2 – 20%, N2 – 60%, H2O –3% • Organic compounds - 25%

A new corrosion protection system has been developed to mitigate corrosion for the underside of a storage tank roof. This system uses a special class of

For a cone roof tank, the VCI is introduced into the vapour space and forms a molecular barrier on the steel surface creating a protective layer. The VCI is delivered into the storage tank vapour space via a dispenser system.

Basic composition of the vapour space atmosphere in tank vapour spaces Components O2 SO2 H2S R-S-H* Cl N2 CO2 H2O Approximate volume, % 4 1 1 5

0.5 70 12 0.5

*Mercaptan – a compound that contains the functional group composed of a sulphur atom and a hydrogen atom (-SH). Mercaptans can create similar corrosion problems as H2S, so should be included in any discussions in regards to corrosion for tank roofs

The relative humidity (RH) in the vapour space is typically from 80 to 100% and the temperature can be from -40°C to +50°C. (The tank top surface temperature can reach as high as +80°C.) Corrosion in the tank vapour space occurs when gaseous corrosive species absorb in the condensed water layer on the tank roof interior surface, thereby creating a highly acidic pH (in the range of 2-5).

corrosion inhibitors called volatile corrosion inhibitors (VCI). A VCI works by volatilising and then moving freely in the airspace. VCI molecules from the airspace can adsorb onto the steel surface, creating a mono-molecular protective layer. VCIs, typically in the form of a film, paper or capsule/emitter/sachet, have been used to protect steel equipment and parts for several decades.

For the dispenser system: • A hole is cut into the tank roof • A flanged short section of 2” diameter pipe is welded to the roof • A valve is attached onto the short section of pipe • A dispenser is attached to the opposite end of the valve. Once the valves have been opened, the dispensers will deliver inhibitor into the tank top vapour space. Multiple 71


CORROSION

TA N K S T O R A G E • September 2012

VCI dispenser

Mono-molecular barrier

dispensers are populated across the roof to create the dispenser system. The VCI is delivered into the tank vapour space by its vapour pressure. As such, there are no active parts to the system (pumps, fans, etc.) and if required, the valves can be closed to isolate the dispensers from the tank vapour space.

Field trial A field trial was conducted at a refinery on two tanks with similar properties: • Diameter 55m (180”), height 14m • Tank roofs had been replaced at approximately the same time • Distillate storage. The following were monitored/ measured to evaluate the new corrosion protection system: • Environment in the tank roof vapour space, (relative humidity, temperature, concentration of O2, SO2, and H2S) • Tank roof thickness by using an ultrasonic thickness gauge • Inhibitor weight loss to define the expected service life of dispensers (time until dispensers need refilling)

Dispenser system on tank top

Environment conditions of tank vapour space Monitoring results Basic parameters

Temperature, oC 20-55 Relative humidity, %

72

40-100

Concentration O2 (%)

18 - 18.9

10-21

SO2 (ppm)

1.0 - 7.0

> 20

H2S (ppm)

3.0 - 6.0

> 26

Estimated corrosion rate, mm/year*

0.4 - 0.7

0.12

*Based on test results and publications

environment is shown above. As can be seen in the data, the environment in Tank 2 (with VCI) was much more aggressive than in Tank 1 (control, no VCI). An investigation after the trial determined that while both tanks held distillate, the oil was not from the same source and the Tank 2 distillate was more sour. The figure also includes the corrosion rates extrapolated to one year:

Field trial discussions: results and discussions A summary of the measured tank roof vapour space

Tank 1 – No VCI Tank 2 – w/VCI CONTROL TEST

Corrosion loss of the tanks’ tops after 90 (1), 225 (2) days and extrapolated to one year (3)

• 0.5mm/year for Tank 1, control (no VCI) • 0.12mm/year for Tank 2, with VCI. Prior to the start of the field trial, steel coupons were placed in the vapour space of Tank 2 for 40 days without VCI protection. The calculated results indicated that the corrosion rate in this very aggressive environment could reach approximately 1.6mm/year.

The findings • Corrosion loss of tank roofs (thickness), from the underside vapour space, is dependent on the gaseous composition and concentration of the main aggressive species, (SO2, H2S), RH, temperature and operational conditions of the tank. • Laboratory test results allow selection of appropriate inhibitors for corrosion protection in an

aggressive tank vapour space environment. • The new protection system, (dispensers with VCI) decreased the average thickness loss from 0.5mm/ year to 0.12mm/year, thereby increasing the tank service life at least four times (estimated from six to 24 years). This improvement was seen even though the test tank, (Tank 2), had a more aggressive environment. • The new corrosion protection system can be applied on both new and existing storage tanks and excludes the necessity to: o Take storage tanks out of operation for replacement of roofs or coatings o Use expensive stainless steel, aluminum and plastic instead of carbon steel • The composition of the VCI formulation can be optimised depending on: the stored product, environment and application conditions. Subsequent to the above mentioned field test, lab testing of corrosion protection for the void between wiper blades on the perimeter of a floating roof have been initiated. Preliminary results indicated that these high risk areas of the floating roof can also be protected. n For more information:

This article was written by Kelly Baker, Zerust, kbaker@zerust-oilgas.com


corrosion

September 2012 • TA N K S T O R A G E

As part of an investigation into incidents in which drain line segments failed, Kuwait Oil Company found that infrequent use of certain shaped drain pipes were to blame

Maintaining ‘U’ and ‘L’

shaped drain segments T

he uncontrolled and unplanned release of toxic crude into the environment is every oil operating and handling company’s nightmare; it will most certainly damage the surrounding environment, sometimes beyond repair. This was the case of the catastrophic Gulf of Mexico Deepwater Horizon oil spill incident in April 2010. Approximately 790km of US coastline was contaminated by the oil leak from the underwater oil well and BP is currently executing an extensive restoration project that, to date, has cost BP around $14.7 billion (€12 billion). Oil spills will also impact the company’s reputation as a reliable provider and most definitely reduce its profits. No oil operating company is immune to this potential hazard, as was the case with Kuwait Oil Company (KOC) when, in July 2009, crude oil supply was abruptly stopped to Al-Zour power station for a few hours, due to a largescale, uncontrolled oil leak in the pipeline feeding the power station. Another incident occurred in KOC’s South Tank Farm (STF) in November 2007, where the filling operation to three tanks was stopped for the same reason.

Infrequently used drain segments When ‘U’ and ‘L’ shaped drain segments are not used very often, two hazardous situations can arise: deposit corrosion and sludge accumulation.

Corrective measures were taken by export operations and export maintenance and all the affected tanks were put back into service on 15 November. An investigation team was formed to launch a comprehensive study into the immediate and root causes of this incident. The team wanted to be able to provide recommendations on methods to mitigate the increased risk from these dead legs and eliminate such incidents’ future re-occurrence. The team found that the immediate cause of the spill was due to severe corrosion leading to the failure of an elbow joint attached to the 6” drain segment on the filling line located outside the tank bund wall.

Oil spill from gravity pipeline #1 (GL-1)

Oil spill from tank 64 filling line On 10 November 2007 at 10.50am the shift supervisor at Crude Oil Control Centre (COCC) received a call that the crude oil was overflowing from a pit located outside Tank 64 bund wall at the STF. Oil was spreading and filling newly excavated trenches related to an adjacent project. The shift supervisor implemented KOC general emergency procedure and

acted accordingly. Tank 64 filling line 24” was isolated, consequently putting tanks 63 and 65 out of service as they all have a common filling line, and the oil spill was brought under control at 12.30pm, nearly two hours after the incident was reported. The total quantity of spilled oil was calculated at 327 barrels. This filled the pit and adjacent trenches so the total recovered quantity was 321 barrels.

GL-1 had been undergoing draining activities in preparation for modifications that were planned on the line. The line had been presumed empty for three days until the day of the incident but could not be confirmed. On 19 July 2009 at 09.30am the export maintenance on-site supervisor made an emergency call to KOC Burgan Fire station reporting oil overflowing from one of GL-1’s pits near Kuwait’s High Way 40 (one of the busiest in Kuwait). Burgan Fire Station, in turn, informed all the concerned parties as per their call out list. Export operations implemented KOC general 73


corrosion

TA N K S T O R A G E • September 2012

Similar incidents where deposit corrosion, due to stagnation, caused an accelerated pipe material loss leading to oil spills: S.N. Spill

Date Line Location commission

Oil amount Spilled Recovered Immediate cause of leak (Bbl.) (Bbl.)

1 24/7/2001 1993 TK61 filling valve 140 120 pit

The leak was due to the corrosion of 6” drain segment at 6 o’clock position.

2 18/9/2001 1993 TK63 filling valve 50 42 pit

The leak was due to the corrosion of 6” drain segment at 6 o’clock position.

3 16/12/2001 1985 TK59 filling valve 80 60 pit

The leak was due to the corrosion of 6” drain segment at 6 o’clock position.

4 7/7/2002 1985 TK59 loading valve 30 15 pit

The leak was due to the corrosion of 6” drain segment at 6 o’clock position.

5 29/7/2006 1993 TK60 filling valve 8 8 pit inside the STF

The leak was due to the corrosion of 6” drain segment at 6 o’clock position.

emergency procedure and acted accordingly. The total quantity of spilled oil was calculated as 250 barrels and the total recovered quantity was 220 barrels. The immediate cause of the spill, as per the investigation team, was due to the method applied by the site supervisor to verify the line emptiness. After the 6” drain valve (connected to a dead leg) was opened and no oil came out, the site supervisor poked in a rod to clear any existing blockages in the drain segment. The oil under pressure (withheld by sludge) was immediately released and the site supervisor failed to close the drain valve leading to oil overflowing from the pit into the surrounding environment.

In depth analysis Design criteria As per ASME B31.3 (2010), the pressure thickness of a pipeline is determined in accordance with the following equation:

t = PD 2(SEW + PY) Where: ‘P’ is the internal design gage pressure, ‘D’ is the outside diameter of the pipeline, ‘S’ is the stress value of the pipe material, ‘E’ is a quality factor, ‘W’ is the weld joint reduction factor, ‘Y’ is a coefficient. 74

The required pipe thickness is then obtained by applying the next equation:

export operations’ facilities. Accumulated deposits create conditions favourable

to extremely destructive microbiologically influenced corrosion – so-called deposit corrosion – associated with stagnant areas with the intrusion of foreign materials. KOC came across many situations where hydrocarbon release incidents occurred due to accelerated excessive internal corrosion on the walls of the dead legs. The root cause of such acceleration is the accumulation of trapped corroding materials referred to as ‘stagnant oily water’ on the internal walls of the dead legs. But how are these dead legs responsible for that hazard? Export operations teams discovered that there were two immediate causes to this. The first immediate cause is the perforation of the girth welds at the 6 o’clock position. The perforation (corrosion) was caused by water separation

tm = t + c

Where: ‘tm’ is the required thickness of the pipe being designed, ‘c’ is sum of the mechanical allowances (thread or groove depth) plus corrosion and erosion allowances, and ‘t’ is the pipe pressure thickness and should not be less than ‘tm’ For coefficient ‘C’ it should be noted that, for dead legs, there will be no erosion allowances, also there will be no mechanical allowances as there are no grooved or threaded connections, so this coefficient shall only accommodate for corrosion allowance. As a normal practice in KOC, this allowance (for all pipelines designed under ASME B31.4 and piping systems designed under ASME B31.3) is usually put as 3.12mm and does not allow for accelerated corrosion due to stagnation in the dead portions of a pipeline or piping system, specifically low points as the drain segments.

A failed girth weld on one of KOC’s infrequently used drain segments

Immediate causes Deposit corrosion: Dead legs are becoming increasingly unfavourable due to their responsibility for many uncontrollable hydrocarbon release incidents in KOC

Complete loss of elbow material in one of the underground dead drain segments


corrosion

September 2012 • TA N K S T O R A G E

Another dead drain segment with sludge forming a blockade

Drain segment oil gush when cold cutting was attempted despite the valve being removed

from crude at the dead legs. The perforation was then accelerated by the imperfections in welds (deep incomplete penetration effect). The second immediate cause was wherever there was excessive material loss due to pitting corrosion (in some cases 45-65% reduction

surge due to bad operations. Both immediate causes of deposit corrosion will eventually lead to the failure of the drain segment.

in original pipe/elbow thickness), which rendered the drain pipe segment completely unreliable. Even if it were not leaking at the time of the inspection, a leak may occur should the location of the heavy corrosion coincide with external corrosion, excessive loads or when there is a pipe

OIL & GAS

Sludge formation A second hazardous situation arises from the accumulation of sludge in these dead

legs, especially at the elbow portion. Sludge is usually formed from the settlement of the suspended waxes in the crude into any ‘low point’, either at a natural rate or accelerated due to pigging operations. This traps large quantities of crude oil (maybe even under pressure) upstream of the

OIL & GAS

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corrosion

TA N K S T O R A G E • September 2012

An ‘L’ shaped drain segment with deposited sludge at the elbow segment of dead legs

drain segment as well as sludge formation. Initial design as shown above did not account for the infrequent use of these drain segment and its consequences. Although the design itself is correct, it can be argued that it was inapplicable or not useful to our operations requirements. In reality it increased the risk factor associated with the normal risk accompanying hydrocarbons’ handling activities. 3. Human error by lack of competency of onsite supervisor leading to wrong decisions, over confidence, or neglecting to adhere to operational standing instruction manuals and industry’s recommended practices. As was mentioned in the oil spill in July 2009, the onsite maintenance personnel, out of lack of experience and against the operations’ instructions on the work permit, poked a rod into a sludge barrier on one of the blocked, presumed empty,

This dead leg with the solidified sludge was connected to a live line

settle point, which in turn provides false indication to the operations or maintenance onsite personnel that the line has been completely drained and is empty. The immediate cause of an oil spill and discharge into the environment would be one of the following two reasons: • The sudden collapse of the sludge blockade withholding the crude oil when verifying the lime emptiness by the onsite personnel. • False indication that the line is empty when attempting to carry out any modifications like cold cutting.

Root causes 1. Standing operational instructions that were not updated to incorporate the lack of use of these drain segments. Current KOC operations and external market obligations require the heavy, nonstop use of the main carrier pipelines to which the dead legs are attached to. In other words, the drain segments 76

would only be ‘flushed’ during the highly infrequent and uncommon complete draining of these lines, like an emergency situation where it would be crucial to completely drain the main pipeline through these drain segments. Furthermore, it would have been highly unfeasible to enforce a routine flushing schedule for these dead legs. In KOC export operations’ area alone, there is an estimated quantity of 150 ‘U’ and ‘L’ shaped drain segments so the routine flushing would require a dedicated large workforce with a considerable quantity of vacuum tankers and a fully dedicated oil recovery unit. The unfeasibility of implementing periodical flushing of these drain segments and updating the standing operational instructions to reflect this schedule meant that these segments would be left unused for a prolonged period of time. 2. Initial design that did not anticipate excessive or accelerated perforations and material loss in the

Cancelled drain segments

Redesigned drain segments

‘L’ drain segments when he was inside the pit. After opening the drain valve, the sudden collapse of sludge barrier and the gush of crude frightened the worker and he immediately left the pit failing to close the drain valve.

Recommended mitigating procedures • Launch an inspection programme to predict potential failure and carry out repair works in advance, using welding. This recommendation is in line with API 570 Para. 5.4.2: ‘Each owner/user shall provide specific attention to the need for inspection of piping systems that are susceptible to the following specific types and areas of deterioration: and clause (b) specifically mentioned ‘dead legs’. But this recommendation was later rejected as many of the drain segments had no existing pits. Eventually all the drain segments would need to be either cancelled or redesigned so


corrosion

September 2012 • TA N K S T O R A G E it would not be feasible to construct the pits for the sole purpose of inspection only, which leads to the following recommendation. • Apply corrosion protective coating to the drain segments internally. This recommendation shall not mitigate the risk of sludge settlement and formation; rather it would only mitigate the increased risk from deposit corrosion.

Where it was deemed that the drain segment was not required, export operations opted to cancel them by cold cutting the existing drain segment and welding on a flange and installing a blind flange, the formation of sludge in this case carried no added risk to the operation and the oily water settlement was minimised by keeping the vertical portion of the remaining drain segment at a maximum length of 30cm.

Further comments

It should be noted that the design standards and governing bodies do not segregate between the dead legs and the pipelines to which they are connected to in the design stage in terms of material thickness. The dead legs drain segments issue and their consequences should be tackled proactively at the early stages of design by being initially designed in the 12 o’clock position

and kept to a minimum. Should they be designed at the conventional six o’clock position, then the governing design standards should accommodate for the accelerated corrosion rate of these dead legs by increasing the corrosion allowance thickness. n For more information:

This article was written by Mohammad Al-Rashidi, Mohammad Wehayda and Amir Badawi, export operations engineers at KOC, www.kockw.com

• Fill the drain segments with corrosion inhibiting liquid of specific gravity higher than salty water. This recommendation shall not counter the effect of sludge settlement as sludge is of higher specific gravity than most liquids; this recommendation would only mitigate the increased risk from deposit corrosion. • Provide the drain segments with a ½” water drain plug at the lowest position. This recommendation shall not counter the effect of sludge settlement as the sludge would most likely not pass through the smaller water drain valve; this recommendation would only mitigate the increased risk from deposit corrosion. Furthermore, it shall generate a problem with the feasibility, specifically the dedication of a team to carry out the job of continuously flushing these drain segments. • Cancel or redesign the drain segments. KOC export operations team, with the help and support from Export Maintenance team, chose to implement this recommendation as shown below in the next two clauses: The redesign was executed by changing the drain orientation from the 6 o’clock position to the 12 o’clock position on the existing pipeline, thus eliminating the possibility of any settlement of oily water or sludge accumulation in the dead leg. The new orientation could also still act as a drain point and there is an added advantage that it can serve as an oil level indicator inside the pipe when attempting to completely drain the pipeline. 77


floating roof seals

TA N K S T O R A G E • September 2012

Good data, proactive planning and collaboration with a seal provider can help tank owners and operators avoid unnecessary costs

Avoiding pitfalls

with floating roof seals W

ith numerous seal options available and limited guidance from existing standards, selecting and configuring the right floating roof seal can be a difficult task. It is one that, when done incorrectly, can lead to problems ranging from regulatory compliance issues to premature maintenance outages to more significant failures. In addition, as new employees enter the work force and experienced employees retire, it is important to have an internal list of guidelines aside from the standards that will ensure asset longevity and optimal operational efficiencies for tanks.

Setting the standard Most tank owners are familiar with current resources such as API 650, Appendix H & C; EPA Air Rules; EPA AP42; API MPMS, Chapter 19; API RP 545; NFPA 11; as well as a few international resources such as EEMUA 159, BS EN 14015:2004 and the European Parliament and Council Directive 94/63/EC 1994. Though these existing guidelines provide some specifics such as types of seals required by regulation, shoe dimensions relative to liquid and in some areas, materials requirements, a lot is left open to interpretation. There are numerous crucial purposes for floating roof seals including: emissions mitigation, centring the floating roof to allow safe operation, dampening floating roof movement and protection against rim fires. Whether building new tanks or taking a tank out of service for regular inspection and maintenance, effective planning with 78

Collapsed floating roof

accurate data resources is key to ensuring the floating roof seal accomplishes these critical objectives. The following are some key considerations for selecting and designing floating roof seals (above and beyond the existing standards) that will help ensure asset longevity, engineered safety and optimal working efficiencies. Chemical compatibility – Of utmost importance is to work with a seal provider to ensure that the stored product will be compatible with the seal materials. Elastomers and fabrics, as well as metals, must be considered. Seal materials can warp and deteriorate when improper materials are used, creating gaps, holes and in the end an ineffective or dangerous seal. In addition to the current stored product, it is important to consider future potential change in services in order to ensure the seal will be compatible both now and in the future. UV and weather resistance is another key

consideration to seal selection and design. Materials exposed to weather should be resistant to the effects of sun, wind, and depending on where the tank is located, extreme hot or cold temperatures. Reputable seal providers should be able to provide information on materials offered and how each performs when subject to various environmental factors. In addition, the seal should maintain product purity by mitigating the ingress of water. Secondary seals should keep water and snow out of the rim space and foam dams should be equipped with weep holes and properly maintained to prevent clogging which can lead to topside corrosion, pontoon damage and, ultimately, the potential to sink the floating roof. Resistance to abrasion is another consideration. Factors such as cycle frequency, service life goals and shell condition should be taken into account. Seal construction including plate width and pressure application can

determine seal effectiveness. For example, secondary seal plates should be narrow in order to distribute pressure and prevent accelerated wear points on the wiper tip. Similarly, mechanical shoe seals should have pressure mechanisms that avoid applying point-loads that can wear holes in the shoes over time. In well-designed seals, pressure points are distributed across the shoe in multiple points. This distribution of pressure helps to maintain a tight seal and allows the shoe to conform to shell anomalies. Reputable seal providers can supply cycle test data. Seals are not ‘one size fits all’ and good seals are designed to ensure adequate working range for rim space variations. Every tank has a unique shape, making it imperative to conduct rimspace and verticality surveys prior to fitting a seal to a floating roof. API 650 calls for seals to be able to adjust +/- 4” from the nominal rim space. However, for external floating roofs where tank ovality is more prevalent and dynamic forces such as wind and turbulence can move the floating roof, that range may not be adequate. Tank shells can be scored by poorly fit seals with improper pressure distribution; this can damage coatings and increase the probability of expensive shell repairs during the life of the tank. Similarly, designing the seal to operate effectively across varying rim spaces is extremely important. When rim space varies greatly, support arms in hinged shoe seals should be long enough relative to the rim space to minimise shoe drop. Additionally, the secondary seal plate length,


floating roof seals

September 2012 • TA N K S T O R A G E gauge and tip type should be determined only after careful consideration of the operating conditions including cycle frequency, temperature and shell condition. This can all be determined with accurate survey data and a good understanding of the tank’s intended use. Closely related to ensuring flexibility for rim-space variations is the ability for a seal to have circumferential flexibility. Seal designs and construction should allow expansion and contraction without compromising seal integrity. Using modular vapour barriers such as gaskets can create gaps. Seals should use a continuous vapour barrier to ensure a proper seal. A good seal should be flexible and apply continuous pressure in order to handle shell surface anomalies. Specific shell conditions, such as ovality or local shell deviations, should be disclosed to seal providers prior to seal selection. For shoe seals, conforming to shell deviations means using a flexible shoe with a pressure system that applies pressure consistently in multiple points across the shoe, distributed both horizontally and vertically. For wiper-type seals, the tip should be flexible, durable and continuous pressure should be applied to prevent gapping. Shell surface variations can present quite a challenge to maintaining a tight seal and seal wiper tips should be thoughtfully selected to ensure gap-sealing integrity and longevity. The floating roof seal should apply enough pressure to keep the floating roof centred. When the floating roof is not properly centred, it can drift from wind, turbulence or drag force on columns and gauge poles. In extreme cases, the result can be catastrophic. In order to keep floating roofs centred, the pressure mechanisms in floating roof seals should be substantial and made from materials that do not yield or degrade over time. The seal should maintain a tight seal to prevent volatile mixtures of vapours and oxygen. Gapping seals and/ or torn vapour-barrier fabric can result in excessive vapours above the floating roof. This is especially dangerous during electrical storms. When a

Seal design and selection considerations: w w w w w w w w w w w w w w w w w w w w w w w w w w w

Chemical compatibility Fatigue resistance Ability to prevent water ingress Ability to conform to shell roundness anomalies Ability to conform to shell surface anomalies Low profile to optimise working capacity Ability to prevent a volatile mixture of vapour and oxygen Ability to dampen lateral roof movements Ability to handle waxy shell residue Secondary must provide access to primary for inspection Abrasion resistance Flame retardancy Resistant to heat Adequate working range Adequate circumferential flexibility Ability to handle drag forces and torque from roof travel Ability to handle potential gas upsets Ability to maintain pressure over time for seal integrity UV resistance Ability to handle freeze-thaw cycles Ability to handle snow loads Ability to maintain seal integrity with wide-ranging rim spaces Ability to keep the floating roof centred to allow for smooth, safe travel Ability to clean and gas-free Does not pose a risk of trapping vapours Safe and easy to install; even in-service when possible Secondary must be mounted independent of primary

lightning strike occurs, the momentary difference in electrical potential between the tank shell and the floating roof will likely create sparks in the seal vapour space. Even in tanks which follow API RP 545, there is no way to guarantee that sparks will not occur in the vapour space. A tight seal becomes an added layer of security, keeping the vapour space saturated and safely above the Upper Explosive Limit (UEL). On the other hand, a gapping seal or torn fabric will allow oxygen into the vapour space, creating a volatile environment. Maintaining a tight seal is done through a combination of several factors discussed above – proper working range,

quality non-yielding materials, flexibility to conform to the shell, durable and chemically compatible fabrics, and an excellent pressure distribution system that keeps the roof centred and the seal tight. A secondary seal height should maximise tank capacity. A lower-profile secondary seal allows the floating roof to travel higher, increasing working capacity. It is important to have good verticality and rim-space data to ensure a low-profile seal has the proper working range. If the upper rings of the tank shell are able to handle additional capacity, gains due to proper seal selection can mean the difference in thousands of additional

barrels per turnover. Seals should be easy to clean and gas free. Traditional foam log, bag and tube seals have the potential to trap hydrocarbons, which creates an unsafe environment for maintenance workers and also poses environmental disposal problems. In order to avoid those issues, make sure you talk with your seal provider to discuss options that are safe and environmentally friendly. Additional considerations include seal fabrics and wax scrapers. There are multiple options for seal fabrics. Seal fabrics should be chosen to ensure chemical compatibility as well as durability under specific environmental and operating conditions. In addition, fabrics should be fire retardant. Wax scrapers may be a consideration if the product creates waxy build-up on the tank shell. If this build-up is allowed to occur, the secondary seal can partially scrape some the wax off as the floating roof travels upward, resulting in hydrocarbons on the top of the roof; this product is not only a fire hazard or a large source of emissions, but can lead to plugged foam dam weep holes and topside corrosion of the floating roof. The solution is effective wax scrapers located below the liquid level. These scrapers should be made of hardened stainless steel (to prevent yielding) and be designed with additional pressure application located just above the wax scraper.

Seal selection Good seal selection and design starts with good data and careful planning. Accurate tank data including rim space and verticality surveys will ensure the seal system is designed to effectively negotiate the rim space. Other important considerations include the stored product (now and in the future), cycle frequency, shell anomalies, operating conditions and any additional local regulatory requirements. Proactive collaboration with a reputable seal provider will help ensure you are getting the right solution for your specific application. n For more information:

Dangerous hydrocarbons on top of floating roof from waxy buildup on the tank shell

This article was written by Jeff Eickhoff, sales and marketing general manager at HMT, www.hmttank.com

79


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TA N K S T O R A G E â&#x20AC;˘ September 2012

World-leader in innovative products and solutions for aboveground storage tanks. Tank Optimization

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HMT Services

Working capacity optimization Inventory / heel reduction Emissions reduction Engineered safety In-service cycle optimization

Floating roof seal systems Floating roof drain systems Internal floating roofs Geodesic dome roofs Emissions reduction devices Flame arrestor / vent products

Tank repair & maintenance Tank inspection & calibration New tank construction Painting, coating and lining Tank engineering

Industry-Leading Tank Product Technologies

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www.hmttank.com +1 (281) 681-7000

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Locations worldwide Headquarters: 24 Waterway Ave, Ste 400, The Woodlands, TX 77380

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automation

September 2012 • TA N K S T O R A G E

Dulux improves storage inventory management D

Omniflex Data2Desktop web-based monitoring system brings suppliers and plant procurement closer together

the levels associated with the 63 tanks on site and

Dulux administration and procurement personnel also

Our buyers are able to see tank levels and get a trend of usage over time Gordon Davey, project engineer, Dulux

displays the information for the vendors who through separate logins have rights to the system.

ulux (Pty) in South Africa is a wholly owned subsidiary of AECI, one of the leading industrial paint and coating groups in southern Africa. As part of a strategy to improve plant efficiency, the company decided to engage the services of automation solutions provider Omniflex, which has offices in South Africa, Australia and the UK. The company needed to provide direct control to vendors in the management of bulk chemical supply and on-site storage. Dulux required the monitored information to be made available to vendors so they could monitor at any point in time and from any location. Omniflex supplied an advanced Data2Desktop data monitoring solution, where the data from the on-site storage tanks on the Dulux site is made available to the vendors over the internet using conventional browsers. Twelve vendors are connected to the system some of whom are based in Europe. Login rights for the individual vendors are managed by Dulux so that multiple users only have access to their relevant data. The monitored parameters are also logged at the Data2Desktop Data Centre so that trends can be viewed with reference to time and in conjunction with other monitored parameters. Alarms are sent to selected vendor personnel via SMS and or email if out of limit conditions are detected at the data centre. The system extracts data from a Siemens S7 PLC via a Profibus Network which is currently used to monitor the tank levels on site to a SCADA. The Omniflex Data2Desktop RTU collects

monitor the tank status via the Data2Desktop site as the convenience of simply using an internet browser

to view the status of supply chemicals keeps them well informed of supply status and usage trends.

The result Gordon Davey, Dulux project engineer, had this to say: ‘This technology is amazing – we knew it existed but we had no idea how easy it was to configure and use. Our buyers are able to see tank levels and get a trend of usage over time, which is impossible with our conventional inventory control systems. ‘Our vendors now also have access to the same information and we are pre-empting shortages and improved our efficiency.’ n 81


tank decomissioning

TA N K S T O R A G E • September 2012

How proper environmental, health and safety management can set a clear path forward for obsolete assets and ensure the best return on an investment

Down but not out

A

s assets approach the end of their lifecycle, critical decisions must be made on their decommissioning and reuse. The primary challenge is finding an appropriate balance between engineering feasibility, environmental protection, public health, worker safety, risk and budget.

Pre-planning, strategy and expectations It is important to consider the ‘what ifs’ and potential scenarios that could affect the project – everything from neighbouring property activities, traffic patterns and weather to permits, regulators, waste identification and disposal. The first step in preplanning is understanding the site. What were its historical uses? Who are and were the neighbours? If the site has been dormant for a long period, are there any employees still available to interview? Are there aerial photos? What about permit records? Where are the underground utilities located? Are they live? Can utilities be safely de-energised without disruption to others’ services? Much of this information may not be readily available and additional effort and time will be needed to research and collect this valuable intelligence. Next, it is important to think about the project schedule and budget, as these items will affect other pre-planning and strategy decisions. When does the site need to be decommissioned? Six months, one year, three years? Is the site owner leasing the property or are there third party entities involved, 82

High reach excavator with mechanical shears

such as port authorities? Who is responsible for the decommissioning costs? Is there an estimated budget? Once the timelines and funding have been determined, the project manager will need to weigh the pros and cons of the various demolition methods, such as manual versus mechanised or possibly controlled blasting. Are there site characteristics that would prohibit or promote one method over the other, such as proximity to neighbours? Are there site restrictions on explosives, noise, dust or other hazardous materials, like asbestos? After selecting the optimal demolition method, it is useful to put together a project team and list of key stakeholders that will be involved with the decommissioning. If the project owner does not have skilled decommissioning expertise in-house, it will have to consider procuring heavy equipment operators, waste

management specialists, utility locators, transportation and security services. An engineering and environmental consultant can provide project oversight for the site owner and manage the team of subcontractors. The following roles need to be filled: project director, senior project manager, technical advisor, HSSE advisor, senior engineer, project coordinator, onsite HSSE officer, logistical support officer, subcontractor foreman, subcontractor HSSE officer and subcontractor logistical support officer. In addition, administrative roles for project documentation and management, permit management, training, equipment usage, recording personnel on site and site visitors are essential. Lastly, it is vital to manage expectations. If the company does not have a thorough understanding of its site, the materials on the site, the status of the utilities or the condition of the

assets, there may well be potential schedule delays and budget revisions.

Addressing compliance responsibilities Compliance is critical for a successful decommissioning project, but due to the variety of unknowns likely to be encountered during the project, schedules and budgets may be affected in order to meet regulatory requirements if thorough compliance research is not done in advance. To ensure compliance and avoid violations, fines and project delays, an engineering and environmental consultant and demolition contractor can bring significant project value through detailed knowledge of regulatory requirements and strong working relationships with government and regulatory agencies. The most common permits and conditions for terminal decommissioning projects include construction, storm


tank decomissioning

September 2012 â&#x20AC;˘ TA N K S T O R A G E water, dust and noise nuisance control, rigging and hoisting, excavation, grading and waste management. Managing the handling, transport and disposal of regulated material is also a critical consideration. What regulated materials are there at the site? Asbestos, mercury and lead are common materials used in construction materials, and are regulated wastes in most jurisdictions. What hazardous materials are there at the site? All hazardous materials must be identified and properly handled for disposal or recycling. A scrupulous list of any and all materials used or stored on-site should be created to assist with proper handling and disposal. The last consideration is that of waste minimisation. What material can be recycled? What material can be reused? Ferrous and non-ferrous metals, some building materials and clean concrete can be recycled for other uses. Site equipment can also be retrofitted for use at other facilities. Minor waste minimisation practices can deliver major cost savings and should not be overlooked.

Ensuring worker safety Worker safety is paramount and zero injuries should be the highest priority. To help ensure worker safety, every decommissioning project should have a comprehensive health and safety plan in place that establishes clear roles and accountabilities as well as details site-specific protocols for training, hazard recognition, communication, documentation, incident management, personal protective equipment, performance measurement, management of change and continuous improvement. Training must cover the full spectrum of activities expected of the worker including hot work, working at heights, confined spaces, lifting operations, ground disturbance, possibly explosive handling and use, heavy equipment operations, traffic control, waste storage and handling, and energy isolation. Hazard recognition is a key concept to keeping workers safe. Proper hazard recognition training should

Tank demolition with mechanical shears

Weaken the tankâ&#x20AC;&#x2122;s structural integrity, then pull the tank on its side

provide workers with the knowledge and tools to identify a hazard, eliminate it, control it or protect themselves from it. What are the site-specific hazards? Special consideration should be given to short duration site visitors and subcontractors to ensure that their safety is adequately addressed. This group of workers often presents the largest safety risk for a project of this nature. Lastly, personal protective equipment, the final barrier between worker and physical hazard, must be defined for all work activities. What types of personal protective equipment are minimum requirements and for whom? The health and safety plan should be discussed with the work force to eliminate complacency. Regular safety audits are also recommended to keep the workforce focused on working safely.

Managing residual liabilities The final piece of the decommissioning puzzle is

determining how to manage any residual liabilities from the site. This decision will depend largely on the future land use. Will the site be redeveloped for commercial use? Is there potential for residential use? Are there any restrictions to either, based on site impacts? Are there any minimum requirements for site restoration imposed by the land owner, potential buyer or regulatory agency? Managing residual liability is another place where an experienced environmental consultant can bring value to the project, as they will know the extent of any environmental impacts, whether remediation is necessary and if so, which remediation technology is best suited to the site and project end goal. Decommissioning and site restoration often go hand in hand, but being an expert in one does not necessarily mean you are an expert in both. Another option for managing residual liability is an environmental liability transfer

that effectively relieves the company of its cleanup obligation. Through an environmental liability transfer solution it is possible to legally transfer the responsibility for managing the known and unknown environmental liabilities associated with the site to a third party for an agreed upon and insured lump-sum fee. This can be an attractive option for terminal owners when land use allows and when a walkaway solution in desired. For those sitting on an obsolete terminal, decommissioning is inevitable and will have to be dealt with in the future, and in most cases at heightened financial expense due to ongoing liabilities, maintenance and security costs. Terminal decommissioning does not have to be a daunting task, ripe with regulatory headache, budget overruns, and safety incidents. With the proper pre-planning, compliance due diligence, safety emphasis, project personnel and selection of qualified suppliers, it is possible to extract the best value from a project without compromising environmental, health and safety excellence. n For more information:

This article was written by Jon P. Pesicka, P.E. Antea Group, www.anteagroup.com

83


bunker fuels

TA N K S T O R A G E • September 2012

Testing for the inclusion of hydrogen sulphide in the ISO 8217 marine fuel standard has taken two years to achieve. Now it is in place, what is the best way to test for its presence?

The not so sweet smell of success

84

such as mercaptans and hydrogen sulphide. During the refining process most of the hydrogen sulphide is driven off, but the longer chain mercaptans break down further and can re-introduce hydrogen

standard the issue was firmly in the hands of the owner/ operator with guidance being provided by the International Safety Guide for Oil Tankers and Terminals (ISGOTT). The ISGOTT guide provides a full range

It is widely accepted that low levels of hydrogen sulphide in the liquid phase can equate to significant levels in the vapour phase given the correct conditions for evolution of the gas

sulphide back into the fuel. This inherent hydrogen sulphide may remain in the fuel, however heating of the fuel or storage at an elevated temperature on board the vessel can lead to the gas being evolved. Although refineries have gone to great lengths to control the levels of hydrogen sulphide in the final product, it is inevitable that some will still be seen in the fuel provided to the end user. The inclusion of hydrogen sulphide within the ISO 8217:2012 (ISO 8217:2010) test scope highlights this particular issue, which has long been considered an ‘occupational hazard’ for the shipping world. Prior to the inclusion of the hydrogen sulphide test within the ISO 8217 marine fuel

A

nalysis of any particular medium is designed as a method of control. Whether it is the regulation of pharmaceutical products, foodstuffs or any type of fuel, the test scope will be specifically tailored to determine the essential requirements of the individual product. In the majority of cases the analysis will focus on the physical parameters which determine the suitability of the product for use. However, the analysis takes on a far greater significance when the focus falls on the aspect of health and safety. The evolution of the ISO 8217 test standard has been a continuing project since it came into being in 1987. The original standard examined the overall quality of the product to be supplied with the flash point of the fuel being the only parameter that was directly linked to the safety of the onboard crew. However, the use of residual marine fuels brought about another risk not documented in the original ISO 8217 standard. Hydrogen sulphide gas is colourless, poisonous, flammable with a distinctive odour of rotten eggs, and can be present in marine fuels as a result of the crude source from which the fuel is derived. Sour crude is a particular variety of crude oil, found in the Americas and Middle East, which is rich in sulphur compounds

of recommendations/ requirements for dealing with residual fuels suspected to contain high levels of hydrogen sulphide. It sets out specific guidelines regarding possible concentrations of hydrogen sulphide, exposure limits, vapour monitoring and use of personal protective equipment. As a result owners, operators and vessels have all developed their own safety procedures and have become accustomed to dealing with this particular problem. The inclusion of hydrogen sulphide in the ISO 8217 marine fuel standard came about in June 2010 with an implementation date of 2012. The two-year delay was preplanned to allow the industry to come to terms with the newest equipment and the

associated test method. The ISO 8217:2012 (ISO 8217:2010) standard covers the presence of hydrogen sulphide in marine fuel using the recently completed IP 570/12A test method – ‘Determination of hydrogen sulphide in fuel oils – Rapid liquid phase extraction method’. The test method has been developed such that it determines the levels of hydrogen sulphide contained within the liquid rather than the expected levels in the vapour evolved from the liquid. This takes a significant step away from the ISGOTT guidelines where the focus was firmly fixed on overall levels of H2S vapour. As a result of this ‘shift in policy’ questions have been raised regarding the 2 ppm limit and whether it offers and increased level of protection to seagoing crews. The relationship between liquid content of hydrogen sulphide and how it translates to overall content in the vapour phase is a common topic for discussion. It is widely accepted that low levels in the liquid phase can equate to significant levels in the vapour phase given the correct conditions for evolution of the gas. However, the exact relationship between liquid and vapour, and the extent of gas evolution based on a specific liquid concentration, cannot be wholly defined. The rate of gas evolution


bunker fuels

September 2012 â&#x20AC;˘ TA N K S T O R A G E is determined first and foremost by the overall concentrations of hydrogen sulphide in the liquid phase of the fuel. It may seem like an obvious statement but, if there is no hydrogen sulphide in the liquid phase, there can be no evolution of the gas. If hydrogen sulphide is indeed present in the liquid phase evolution will be entirely dependent upon the conditions the fuel is subjected to and the equilibrium that is established between the liquid and gas phases based on those conditions. During the development of the IP 570 test method this particular issue was held as a key consideration and as a result the final published method gives a greater degree of confidence

anzeige_A5_en.indd 1

regarding possible levels in the vapour phase based on actual levels in the liquid phase. This coupled with already existing procedures developed by owners/operators in dealing with the presence of hydrogen sulphide gas in working environments on board will significantly reduce the risk of exposure to crew members. The IP 570 method itself is published as a single method that encompasses two different test procedures: Procedure A and Procedure B. During the development and testing of the method it was noted that a very small percentage of fuels contained chemical species that were capable of providing a false positive result, highlighting the supposed presence of

hydrogen sulphide. In reality the artificial spike was a direct result of the presence of certain mercaptans and not hydrogen sulphide. To alleviate this particular problem the method was sub-divided to accommodate Procedure A and Procedure B. Procedure B of IP 570 allows the equipment to be utilised in its standard form where it is able to detect the presence of additional sulphur species, such as mercaptans, as well as hydrogen sulphide. Procedure A, noted as the reference method by the newly released ISO 8217:2012 standard, requires the application of a vapour phase processor. This prevents interference from other sulphur species that may be present in the fuel and provides an accurate

indication of the overall levels of hydrogen sulphide. As the acceptance of the ISO 8217:2012 (ISO 8217:2010) standard becomes more widespread. further questions will no doubt be raised regarding the presence of hydrogen sulphide in marine fuels. However, given the timescale involved for method implementation and the existing safety procedures already adopted to deal with this particular occupational hazard, risk to crews will be significantly reduced. n

For more information:

This article was written by Michael Green, global technical manager at Intertek-Lintec Shipcare Services, www.intertek.com

15.02.12 10:18

85


TANK GAUGING

TA N K S T O R A G E • September 2012

Advanced tank gauging technologies reduce costs for improving terminal efficiency and safety

Removing the risk of uncertainty

N

ewly developed technology for tank gauging can help bulk liquid storage terminals handle the ever-increasing demands on efficiency, safety and accuracy. An open system architecture makes it easy to install the devices needed today and add or replace units in the future. This flexibility protects users’ investments so that refineries and tank farms can become and stay efficient. Additional benefits include lower installation costs, high accuracy and built-in safety functions. One feature with substantial potential to save cost is wireless transmission of measurement values. This enables high precision tank gauging data to be made available anywhere on the plant at a much smaller cost than before.

Tank gauging requires integrated high performance level, pressure and temperature measurement

Operational requirements A modern automatic tank gauging (ATG) system is an integrated high performance measuring and calculation system. It normally includes sensors for measurement of the following storage tank data: • Level • Average product temperature • Pressure (if on-line density and mass is required) • Free water level (if required). The data is used for three main processes handled via a human-machine interface (HMI): • Tank terminal operations monitoring including overfill prevention • Inventory management to calculate storage tanks’ net volumes • Custody transfer to buy and sell bulk liquids. Each process has specific 86

Graphic product movement indication for each tank gives quick summary of tank activity

Reduction of net volume measurement uncertainty can correspond to large annual values

requirements. Terminal operations are getting more demanding as owners want to reduce capital cost via a faster turnaround. When several storage tanks are operated at the same time, reliable alarm functionality plus a good operator overview, is essential from a safety and efficiency point of view. In addition, historical data trends and printed reports should be provided for follow up and documentation. For inventory and custody transfer purposes, errors and uncertainty in volume measurement can obviously have large economic implications. A 5mm level measurement error plus a temperature error of 0.6°C in a large crude oil tank corresponds to around 32m3 of liquid. Considering the amount of transfers, this can add up to a value of several tens of thousands of US dollars for one tank during one year of operation. A precise calculation of net volumes is the key for useful inventory data required for both internal accounting purposes and external taxation. Custody transfer based on ATG requires, in addition, very accurate volume measurement of product transfer batches. Many countries have metrological authorities approving gauging systems for legal custody transfer. Most of these authorities accept gauges that are approved and tested by an accredited laboratory according to the OIML (Organisation International Metrologie Legal) requirements. The performance requirement of the OIML standard is approximately 1mm level accuracy under reference conditions and 2mm installed accuracy.


TANK GAUGING

September 2012 • TA N K S T O R A G E Radar level gauging for reduced downtime Since radar level gauges provide high reliability with no moving parts, and only the antenna/probe is inside the tank, they have become widely used both for high accuracy tank gauging and process level measurement. The radar level gauge/ transmitter measures the distance to the surface of the product. Using tank distances stored locally in the memory of the gauge, it calculates the level of the liquid’s surface. The radar gauge/ transmitter consists of a transmitter head and an antenna. The transmitter head can be combined with any antenna type in the same gauge series, minimising spare parts requirements. No matching of transmitter head and antenna is required, which means the transmitter head can easily be replaced without opening the tank. For radar level measurement, there are mainly two modulation

FMCW measuring method

Drip-off antennas

techniques used today: • Pulse method • Frequency Modulated Continuous Wave (FMCW). Using the pulse method

means that the radar transmitter measures the time it takes for a pulse to travel to the surface and back. The time difference is converted

to a distance, from which the level is calculated. The Time Domain Reflectometry (TDR) technology is a special case, when a low power nano-second pulse is guided down a probe towards the process media surface, where it is reflected back. The FMCW method is used by high performance radar level gauges to enable real custody transfer accuracy. The radar gauge transmits microwaves towards the surface of the liquid. The microwave signal has a linear frequency variation. When the signal has travelled down to the liquid surface and back to the antenna, it is mixed with the signal that is being transmitted at that moment. The reflection from the liquid surface has a slightly different frequency compared with the signal transmitted from the antenna when the reflection is received. The difference in frequency is measured, and it is directly proportional to the distance to the liquid surface. This technology can provide a measured

Liquid Terminal Services Intertek supports the international bulk liquid terminal industry with extensive indepedent technical services. • • • • •

Cargo Inspection and Inventory Laboratory Testing Calibration and Metering Cargo Blending and Additives Treat Support And More

Email: cbwnalabs@intertek.com www.intertek.com/ petroleum/liquid-terminals

Confidence through expertise

87


TANK GAUGING

TA N K S T O R A G E â&#x20AC;˘ September 2012

New bus powered scalable 2-wire system means less cabling

Latest OIML (R85:2008) level accuracy requirement under reference conditions

Wireless tank gauging

making the devices selfconfiguring, start-up will be easy requiring no special knowledge of Foundation fieldbus. One system can include a wide range of components to build a small or large customised tank gauging system. Because of the modular design, a system can later easily be expanded/upgraded

and suited to different requirements on accuracy/ performance, functionality, or system output. The system should be designed to minimise power consumption, to enable the use of 2-wire intrinsically safe technology for the connected devices. These devices can then be powered by the Tankbus. This solution has

Radar gauge with THUM adaptor and hub

Free propagation radar with parabolic antenna

value with high accuracy. The gauges in a high end tank gauging system must also be suitable for all climate zones with a wide ambient temperature range. To enhance accuracy further under varying temperature conditions it is possible to use the following features:

Digital reference An FMCW radar gauge needs an internal reference to make the radar sweep linear. Each deviation from the linearity produces a corresponding inaccuracy. To achieve highest precision, the gauge should have an on-line adjustment of transmitter frequency.

Drip-off means less condensation An antenna with an inclined polished PTFE surface where 88

microwaves are emitted will be less susceptible to condensed water or product. The amount of condensation coating the active part of the antenna will be reduced, resulting in a performance increase.

Open and scalable architecture One way to implement a flexible system architecture is to build the system around a Tankbus, connecting all measuring devices on the tank to a â&#x20AC;&#x2DC;tank hubâ&#x20AC;&#x2122;, normally located at the tank foot. From the tank hub, a fieldbus, often Modbus based, is used to transmit data to the control room. If the Tankbus is based on an open industry standard, Foundation fieldbus, it will allow integration of any device supporting this communication protocol. By

The HMI software distributes essential inventory tank gauging data


TANK GAUGING

September 2012 • TA N K S T O R A G E several advantages as: • It is safer both at system start-up and in operation • Installation costs less, is quicker and easier due to less cabling • No expensive cable conduits are required.

Networking and remote access Interoperability and remote access of tank data is necessary for efficient tank farm management. The tank gauging system should be able to connect to all major suppliers of DCS, SCADA systems, plant host computers or terminal automation systems. The advantage of connecting host computers to a tank gauging system HMI software is that not only the measured values, but also the calculated inventory data can be communicated. Communication to office environment computers and Scada/DCS systems can be made via OPC server or via Modbus.

that overfill incidents do not occur. Depending on the requirements, the tank gauging devices should be certified for overfill protection according to IEC 61508-2 and 61508-3. This type of system provides High-High level alarm functionality, based on separate SIL 2- or SIL 3-rated relay functions. The alarm loop triggers the safety relay output to the emergency shutdown system (ESD). The inclusion of two electronics packages integrated into one transmitter head, a 2-in-1 solution, makes it possible to install a level gauge and get one primary plus one backup unit, or one primary level gauge plus an independent radar based High-High level alarm. Compared to having two separate gauges, the 2-in-1 solution makes mechanical and electrical installation easier.

Smart wireless tank gauging Many tank storage facilities

Two radar gauges in one housing

than 1km requiring extensive trenching and cabling. As a result of budget restrictions, some plants therefore continue to

The HMI software distributes essential inventory tank gauging data

To utilise redundant functionality it is also possible to build a network of several server and client PCs with tank gauging HMI software.

Overfill prevention All refineries, tank farms and fuel depots have a responsibility to ensure

that would benefit from modern, non-contacting gauging have obsolete or non-existing signal wiring from the tank storage area. Retrofit of the gauging system in such plants is normally expensive and time consuming as the distance between storage tanks and the control room can be more

experience maintenance problems by keeping low performing mechanical tank gauges. Now, with innovative wireless technology, installation of a new radarbased tank gauging system can be done without any new long distance signal wiring. This will radically reduce material and labour

cost as well as engineering and project execution time. By connecting a wireless adapter to the tank gauging system, complete tank inventory data can be sent to the control room via WirelessHART communication. The self organising mesh network ensures uninterrupted data communication also in an environment with large mechanical obstacles such as storage tanks. Every wireless adapter serves as a network connector and backup so there is no single point of failure. All data transfer is protected by 128-bit encryption for best-in-class-security. Data is received by a wireless gateway in the control room area and fed into the inventory management software package or DCS system. In addition to level data, all relevant data from multi point temperature transmitters, pressure sensors and water bottom level sensors are transmitted. Wireless tank gauging also means that precise inventory data for remotely located tanks that was previously out of reach can be made available. For those plants already using a wireless network, installation of the first gauging units will be even easier as they can use mesh nodes from other equipment. 89


TANK GAUGING

Parabolic antenna for fixed roof tanks

Antennas for all storage tank types To get high precision, radar antennas for level gauges need to have optimised design for various storage tank designs: Parabolic antenna for fixed roof tanks: This is the optimal antenna design for installation on tanks with fixed roofs without still-pipes. The design of the parabolic antenna gives extreme tolerance against sticky and heavily condensing products,

TA N K S T O R A G E â&#x20AC;˘ September 2012

Still-pipe array antenna for floating roof tanks

standard 500mm manway. Installation is normally made with the tank in service. Horn antenna for fixed roof tanks: The horn antenna is designed for easy installation on fixed roof tanks, with 200mm or larger nozzles. It measures on a variety of oil products and chemicals except asphalt or similar for which the parabolic antenna is recommended. Still-pipe array antenna for floating roof tanks: The small-sized array antenna has a drip-off design, with an inclined surface, and it is made for installation on new or existing still-pipes. Typical applications are crude oil tanks with floating roofs and petrol/product tanks

Horn antenna for fixed roof tanks

such as bitumen and asphalt. The parabolic antenna has a high antenna gain and a high signal-to-noise ratio. The large antenna diameter gives a narrow radar beam, which means the gauge can be installed close to a tank wall. The parabolic antenna can be installed on existing manhole covers. A typical parabolic reflector diameter is 440mm (17â&#x20AC;?) which fits a 90

Gauge emulation

LPG/LNG antenna

with or without inner floating roofs. To get highest accuracy the antenna uses advanced technology to transmit radar waves in the pipe center. This virtually eliminates signal and accuracy degradation due to rust and product deposits inside the pipe. The still-pipe array antenna is

made in versions suitable for installation on 5-, 6-, 8-, 10and 12â&#x20AC;? pipes. It is available in a version enabling full pipe size product sampling or verification hand-dips. Installation is normally made with the tank in service. LPG/LNG antenna: The LPG/LNG antenna is designed for level measurements on pressurised or cryogenic liquefied gas, such as LPG or LNG. Radar signals are transmitted inside the still-pipe which enables the gauge to have a sufficiently strong echo even under surface boiling conditions. The pressure seal is equipped with a doubleblock function, consisting of a quartz/ceramic window and a fire-proof ball valve. A pressure sensor enables volume correction due to vapour for best measurement performance. A reference device function enables measurement verification with the tank in service.

Emulation for step by step upgrades In order to modernise existing tank gauging system step by step, the new tank gauging system must be compatible with other major tank gauging vendors. With this compatibility, it is possible to replace old mechanical or servo gauges with modern radar level gauges using the existing tank openings, field cabling, and control system. The gauge is normally installed with the tank in operation. No hot work is required. A gauge seamlessly replaces another device, independent of measurement technology. Data from the integrated radar gauge is displayed as before on the existing inventory management system. By replacing old servo gauges, you can avoid re-calibration and the expenses associated with spare parts and maintenance. It is also possible to seamlessly replace other tank management systems with a new tank gauging HMI software solution. Data from different types of units is then collected and displayed. This solution provides system connectivity with existing field devices, often with a better update rate than before. n


September 2012 • TA N K S T O R A G E

PAGE HEADER

87


Ground preparation

TA N K S T O R A G E • September 2012

Don’t let the ground dictate tank capacity

W

ith the growing popularity of ground improvement (GI), tank designers no longer need to let the ground conditions dictate the capacity of the tank. GI methods do just what their name implies; improve poor ground conditions in many ways using in situ construction methods that reinforce, change or densify existing ground conditions. Tanks are not unique structures, but the loads they apply to the ground offer some unique challenges to the foundation designers and contractors. Tanks are typically large structures with diameters sometimes exceeding 300ft and heights exceeding 60ft. This combination of tank diameter and height can result in the soil beneath the tank being stressed to depths that are often not explored with typically limited investigations. A 300ft diameter tank when filled to its capacity can affect significant changes in the stress level in the soil to depths exceeding 300ft, so it is always prudent to perform a soil investigation to a depth of at least one tank diameter. Sometimes rock or some other feature found at depth will limit the depth explored. Tanks placed within one half diameter of one another will

also create zones of influence that magnify the stress levels in the soil beneath the tanks. Many types of ground conditions are found at tank sites. Sometimes investigations can uncover soft soil, loose soil, placed fills or manmade fills and heterogeneous soil conditions. Left unchecked and unimproved these ground conditions can control the capacity of tanks. As tanks are filled differential settlements can create outof-plane distortions as well as excessive planar tilting, and in some cases failure of the tank due to excessive settlement near the edge of the tank. Several papers have been written over the years comparing interior and exterior settlements with the failure of the tanks, but the most relied upon paper in the industry for determining safety factors during design was written by Duncan and D’Orazio, titled ‘Stability of Oil Storage Tanks’ as published in the American Society of Civil Engineers Geotechnical Engineering Division Journal, Vol. 110 No. 9, Sept. 1984. The lessons learned and shared in this paper helped tank foundation designers build more reliable foundations and, with economical GI methods, they

Load transfer platform ready to be installed following stone column installation 92

can be built faster and more reliable than ever before. API criteria for tank settlement and safety factors must be met on every design. Several scenarios can exist at a site that dictate when a ground improvement method is valuable and which method can be used.

Soft soil conditions When the ground investigation performed at the site has determined that soft soil conditions exist at a depth below the tank footprint, excessive settlement can result as the tank is loaded. These soft soil conditions can occur in distinct layers or occupy a majority of the explored depth of the investigation. Some soft soil sites where tanks have been built had predicted unimproved settlements exceeding 6 feet. Once the soft soil condition has been identified, the question for the foundation designer and often at times for the terminal owner or operator is ‘How much time do I have between putting in place a useable foundation, building the tank and putting the tank in service?’ If sufficient time is available, wick drains and preloading can be used to strengthen the

soil and reduce its settlement characteristics to manageable values. The wicks are installed on an approximately 4-6ft spacing under the footprint of the tank. Then a soil surcharge or preload is placed over the footprint of the tank, and is constructed to a height that is some proportion of the planned height of the tank. The soil preload is left in place for several months as settlements are monitored. Once actual settlements match the engineer’s prediction under the load, the preload is removed and the ground reshaped prior to final foundation and tank construction. If time is of the essence on the tank project, then other ground modifications may be the answer. In soft soil, soil mixing or nonreinforced inclusion may be the solution. If the soil is not too soft, stone columns or aggregate piers can be used to reinforce the soft soil and reduce its compressible characteristics under the proposed load of the tank. Stone columns are made of dense crushed stone capable of carrying much higher loads than the soil that surrounds them, but if the soil surrounding them is too soft settlements can still be excessive. Once


Ground preparation

September 2012 • TA N K S T O R A G E The GI options and the ground conditions that determine their usages: GI method

Soft soils, compressible soils, organic soils

Wick drains Excellent - Requires preload - May require staged loading Earthquake drains N/A

Mixed soils or undocumented fills

Liquefiable soils or clean sands

Good - May require extra measures to install - Requires preload - May require staged loading

N/A N/A

N/A

Good

N/A

Excellent

Excellent

Stone columns or Good aggregate piers - Sufficient settlement reduction Very good may not be achievable

Sandy soils

Rigid inclusions

Very good

Very good

N/A

Good

Soil mixing – columns

Excellent

Very Good

Excellent

Excellent

Good to N/A - Depending on soil type

Excellent

Good

Soil mixing – mass Excellent installed under the tank in an appropriate grid spacing, the stone columns work in a composite action with the untreated soil to reduce settlements and increase bearing capacity; two things every tank needs. If stone columns do not provide the reduction in settlements or enough increase in bearing capacity, then a much stiffer element such as non-reinforced rigid inclusion can be installed. These inclusions use displacement installation techniques which can provide some densification in sandy soil profiles. Once installed, the pipe is filled with a high strength grout and the pipe is extracted leaving behind a small diameter (<18”), grouted cylinder in the soil. These inclusions are placed on appropriate centers to control settlements and increase capacities. Improving even softer soil that is not reinforced sufficiently with stone columns, the required reinforcement can be achieved with rigid inclusions or soil

mixing techniques. Soil mixing techniques can be used to amend the in situ soil with various binders to increase the strength of the soil to accommodate nearly any load that can be applied from a tank. Used in either 100% treatment of a tank footprint, referred to as mass treatment, or in the form of appropriately spaced columns, soil mixing allows the highest tank capacities with the least amount of settlement.

If the soil is prone to liquefaction in seismically active areas, the design and foundation support for tanks can be equally as challenging as dealing with soft soil conditions. In many cases stone columns or aggregate piers can be used to mitigate sites where soils are granular and will densify. In liquefiable soils with sufficient fines to resist densification, soil mixing is the likely choice since the arrangement of

Stress increase model

the columns can form closed cells by which liquefaction induced settlement is controlled. Many tanks around the world have performed well during earthquakes thanks to GI options. Regardless of the GI method used to support a tank, consideration should be given to the load transfer mechanism between the tank shell/floor and the improved ground. The requirements for cathodic protection, floor slope, floor sumps and piping come into consideration when choosing the type of platform built over the top of the GI. These platforms are often referred to as ‘load transfer platforms’ and come in many shapes and sizes, and the design is governed by many design documents used in the industry. The simplest of these platforms is granular material reinforced with a geo grid type material. Ring beams can also be incorporated into the load transfer platform but may not be necessary in all cases. Ring beams also increase the overall cost of the foundations. A properly designed load transfer platform is more than capable of handling the load from the shell of the tank. The load transfer platform is economical, fast to build and fits well in completing the overall GI foundation design for tanks. The speed of construction of GI methods and the predictable performance characteristics may make them the right choice over more time-consuming and cost prohibitive structural options. n For more information:

This article was written by Dennis Boehm, VP at the Houston office of Hayward Baker. Contact him at +1(281)668-1870 or dwboehm@ haywardbaker.com.

Stress increase model for typical 300ft diameter, 60ft high tank

93


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90

TA N K S T O R A G E • September 2012


valves

September 2012 • TA N K S T O R A G E

A simple measure such as upgrading a terminal’s valves cannot only make an engineer’s working day safer, it can also save time and money

Making life easier M

any terminals built decades ago no longer fulfil the flexibility needs of today’s operations in terms of product handling, speed of operations and modern technology. In most cases the only option for a re-design is a complete re-build. This is not only costly, it would also require customers to find other storage capacity during the period of downtime. Oiltanking Copenhagen (OTC) is a typical terminal situated in Denmark, built in stages from 1960-1972. OTC has a storage capacity of nearly 390,000m3 in tanks sized from 1,000m3 up to 16,500m3. The customers include Scandinavia and Baltic regional operators. OTC handles products like A1 jet fuel, diesel, petrol and VGO. The heart of the OTC terminal, the manifold system, is a DN250 piping system for pumping and DN300 for suction. The valves used on the manifold are gate valves and to make sure nothing comes downstream when the gate valve is in closed position, OTC uses blinds as well. Blinds are needed since the gate valves are not 100% tight and there is no possibility for verification that the valves are sealing as required. Using the blinds avoids any unintended mixing and unneeded waste of product. The working sequence when closing a valve is: • Close gate valve • Unbolt the flanges • Empty the area between the valve and the blinds for product • Turn the blind • Bolt the flanges. This procedure normally takes 30-45 minutes for two persons and a volume of product is released and

The manifold system at OTC is not designed for easy access

recovered at each operation. One of the main considerations when designing manifold systems today is safe working conditions and easy access for the employees. The piping at OTC, however, was not originally designed for easy access, and harsh weather conditions in Scandinavia make these working positions even more unpleasant. The manifold system has been expanded over the years and includes gate valves of different face-toface dimensions. In 2010 OTC decided to look into what could be done to upgrade the manifold system to include: • Meet customers’ requirements for clean/ certified products • Verification of the sealing of the valves • Minimise the waste of product • Improve the safe working conditions when operating the valves. The requirements from

the customer of today are different than the ones of 1970. Today certified products like A1 jet fuel with sulphur content of up to 5,000 ppm, are handled on the same terminals which handle ULSD with 5-7% FAME (bio content) and with sulphur content of 10 ppm. If these products get mixed in any way, the sulphur content in ULSD could reach an unacceptable level or the certified A1 jet fuel could get contaminated with FAME and the certification of the product is compromised. Both scenarios are unacceptable for the terminal operator. A safe and easy way to verify the sealing of a valve is to use a Double Block and Bleed (DB&B) expanding plug valve. After the valve is in closed position the operator can verify the sealing of the valve by means of the bleed system. It takes less than a minute to close the valve and within another minute the operator has verified that the valve is

sealing as it is supposed to. However in this case the gate valves installed had different face-toface dimensions so the gate valves could not be replaced by standard DB&B expanding plug valves. Therefore OTC looked into replacing the existing manifold system including valves and piping. To minimise the downtime, the manifold sections would normally be made outside the terminal with standard face-to-face dimension DB&B expanding plug valves and then, when ready, the existing manifold system would be disassembled and the new sections lifted into the site. OTC could not justify the overall costs, nor the length of downtime for such a project. OTC has previously tested a DB&B expanding plug valve from OmniValve and found it to be reliable, giving the isolation required. The Omniseal DB&B 95


valves

TA N K S T O R A G E • September 2012

Omniseal DB&B expanding plug valve

expanding plug valve has a wedged plug, which in closed position forces two slips with vulcanised soft sealing towards the seating area of the body. This gives a bubble tight sealing. The bleed system allows the operator to verify that nothing comes downstream of the valve. At the same time there is an Automatic Differential Thermal Release system (ADTR), which when the valve is in closed position, releases any accumulated thermal pressure which exceeds 25 psi. If the ADTR system was not present, there would be a risk of pressure accumulation, which at the end would prevent an actuator from opening the valve due to high torques. OTC and Omni discussed the different options available to upgrade the most critical part of the petrol and A1 air fuel manifold system. It was decided a DB&B expanding plug valve based manifold would be the best option. After inspecting the manifold and the gate valves in place, the need for valves on the manifold system was 26pc DN250 with different face-to96

face dimensions from 386mm up to 456mm and 33pc DN300 with different face to face dimensions from 388mm to 503mm. Both DN250 and DN300 were all DIN flanged. The standard patterns of the Omniseal DB&B expanding

plug valve were shorter than the measured face-to-face dimension of the gate valves. The following options were available to meet the needs of OTC: • Standard f-t-f valves with DIN drilled flanges and then OTC to arrange to cut the pipework and weld new and longer pipe and flanges on the manifold • Standard f-t-f valves with DIN drilled flanges and then spacers to meet the measured f-t-f dimension • New patterns with the required f-t-f dimension. This would require six new patterns • A combination of the above three possibilities. The first option was a no-go since it would require too much cutting and welding on the manifold and that would bring the overall costs to an unacceptable level. After looking into the costs for the other possibilities OTC decided to use a combination of spacers and new valve patterns. OTC would use spacers on the valves where there were only a few valves with that specific face-to-face dimension. For the dimensions that had more valves with the same face-to-face dimension, it was financially justifiable to develop new patterns. Omni ended up with a total of four new patterns and 12 spacers to cover the

59 valves. The lead time agreed on was five months. Each valve had a tag number and each was designed and delivered with the hand wheel facing the manifold bridge for easy access to and operation. After the valves were delivered with the OTC specified painting system, the valves were installed. Today the daily life of the OTC operators is much easier. The operators do not have to spend hours outdoor bolting and unbolting flanges and blinds in compromised working positions. Now the operator enters the bridge and rotates the hand wheel and after less than half a minute the valve is closed and the sealing of the valve can be verified by means of the bleed system. The days of wasting valued product are history. On the basis of this successful turnaround on part of the manifold system, OTC decided to proceed with upgrading the manifold system and has ordered another portion of Omniseal DB&B expanding plug valves for the complete diesel manifold. These valves will arrive at OTC at the end of 2012. n

For more information:

This article was written by SvenErik Johannesen, international sales manager for Europe at Omni Valve, http://www.omnivalve.com

Engineering supervisor Søren Lorentzen operating one of the Omniseal DB&B expanding plug valves at OTC


FIRE SAFETY

September 2012 • TA N K S T O R A G E

Updates to a training site are making fire safety more comprehensive, at the same time as becoming more economical

TEEX announces revision to

fire fighting training O

ne of the worst case scenarios emergency responders face each year is incidents involving fires at flammable liquid storage facilities. According to the National Petrochemical and Refiners Association (NPRA), there are 16.8 million barrels of product refined in the US each day from 149 operable refineries. It is clear there is a need to have responders trained and prepared to respond to emergencies which result from flammable liquid fires. As one of the primary providers of emergency response training in the world, the Texas Engineering Extension Service (TEEX) – Emergency Services Training Institute (ESTI) www.teex.org/fire should be in a position to assist emergency response organisations in training their members in the safe response to liquid storage facility fires. To meet this need, modifications to Training Project #45 – API Storage Tank were needed. Project #45 – API Storage Tank Training prop in its current configuration is used to deliver flammable liquid firefighting tactics to fire fighters including paid, volunteer and private industry fire fighters. The training prop configuration offers class participants familiarisation with spill fires and a single tank training prop which can be used for foam applications to the seal and full surface fires. The training prop has full height sides, thus making it impossible for class participants to observe any of the foam application, fire chemistry and flammable liquid surface

Process unit fires – over 21,000 square foot project that burns both LPG and flammable liquids

responses discussed during classroom sessions. TEEX/ESTI has completed phase I and II of a three phase process needed to revise project #45 into

a more useable training prop. In Phase I, all of the surrounding area was sealed and paved during the facility site wide paving project. It now has the flexibility to

Pump alley fire (LPG and flammable liquids). Students learn the importance of integrating hand lines and monitors and capture/ control of hydrocarbon leaks

expand the footprint of the current training prop. In Phase II, TEEX/ESTI created a large spill area consisting of pumps, control valves and related transfer piping which is subject to leak in the real world environment. During Phase II, a new fuelling station was constructed and observation platform at the southernmost point of prop #45. The purpose of the observation platform is to allow students, who are not actively participating in burn evolutions, a vantage point where they can observe the training evolution. Customer feedback has been positive to both of these modifications. Phase III of the project began in mid-December 2011. This included cutting the existing storage tank in 97


FIRE SAFETY

TA N K S T O R A G E • September 2012

API storage tank fires (flammable liquids). Two 25” diameter tanks offering responders training in seal-only fires and full surface involvement for flammable liquids

half and relocating the second half of the tank to the north of the existing tank. This makes it possible to have one tank set up for a seal-only fire and the second tank set up for a full surface fire. This will make it possible to provide both potential tank fire scenarios while lowering the overall sidewall height of

the tanks for an enhanced learning environment. It will be much more economical to burn only the seal area under this design while still providing the option of a full surface involved fire scenario. Phase III of Project #45 – API Storage Tank Training Prop, will lend itself well to the NFPA 472, Annex

E – Flammable Liquid Bulk Storage Specialist class. TEEX is the only training service provider that is currently certifying responders through the ProBoard organisation (www.proboard.org) to the NFPA 472, Annex E – Technician with Flammable Liquids Bulk Storage

Specialty portion of the standard. The project will be completed and operational in mid-February. n For more information:

This article was written by Gordon Lohmeyer, the associate division director for Texas Engineering Extension Service (TEEX) Emergency Services Training Institute (ESTI) – part of the Texas A&M University system.

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• Inverted bottom trunnion no ice or debris build up

• Complete with Automatic Differential Thermal Relief (ADTR) or customer specified, Class VI sealing

• 2” thru 36’ Class 150 2” thru 30” Class 300 2” thru 24” Class 600

• Replacement and maintenance parts interchangeable with most major manufacturers valves

• API 6D, CE/PED, ISO 9001, Firesafe API 6FA and API 607, DIN if required, TA Luft

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98

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scan for pdf

For sales information please contact:

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CONSTRUCTION

September 2012 • TA N K S T O R A G E

Storage facilities in locations like Liberia need a lot of work to bring them up to date by companies not afraid of the challenge

Africa’s potential F

ollowing two decades of civil war, Liberia has slowly been rebuilding its economy. As an example of this, state-owned Liberia Petroleum Refining Company’s (LPRC) fuel storage terminal near the country’s capital at Monrovia is being updated. The facility had fallen significantly behind international standards during the war-torn years between 1989 and 2003. The terminal is now ongoing an entire refurbishment programme – from modernising the boat offloading, pipeline and jetties at the site, to carrying out all of the civil engineering at the tank farm, demolishing the redundant plant, constructing new bunding, laying foundations, constructing new tanks, laying pipelines, installing new pumps and electrical systems, developing new instrumentation and even installing new fire fighting systems. UK-based engineering contractor Motherwell Bridge has been brought in to oversee the entire EPC project, marking the company’s latest expansion into west Africa. The $22 million (€18 million) project will renovate and build 22 oil storage tanks. Operating on a turnkey basis, Motherwell Bridge is managing the entire build with its own team delivering the strategic engineering design capability, while providing job opportunities for the local workforce which it is training up to gain the skills needed to complete the three year project. Where existing tanks can be refurbished, Motherwell Bridge’s team has started to carry out a range of specialist operations, ranging from double deck roof

PROjEN PLC PROjEN HOUSE Wellfield Preston Brook Cheshire WA7 3AZ Telephone: 01928 752500 Facsimile: 01928 752555

Motherwell Bridge’s plans for the new LPRC fuel storage terminal

repairs to tank jacking to allow for foundation repair and floor replacement. As part of its commitment to utilising local Liberian labour, Motherwell Bridge has established a bespoke training centre and is also constructing

an office complex, complete with laboratory facilities, on the site. The end result will see LPRC increase its fuel holding capacity on the site and potentially lead to further investment from the large

A snapshot of the existing LPRC storage tanks

oil and gas multinationals. Russell Ward, CEO at Motherwell Bridge says: ‘We have been exploring opportunities in west Africa for some time and this contract with LPRC demonstrates our ability to undertake complex operations in new markets, building on our existing projects in Nigeria. ‘We see significant opportunities in locations like Liberia as there is still a tremendous amount of work to be done in the country following decades of civil war and we’re not afraid of tackling challenges in what can still be a difficult environment. ‘But we haven’t gone into this job with our eyes closed. We’ve taken a pragmatic approach and have teamed up with people who know the market and can find the people and skills we need locally to make it happen.’ n 99


PAGE HEADER

TA N K S T O R A G E • September 2012

Advertise Your Company To Terminal Operators Worldwide! Nov/Dec 2012 issue to cover: magazine To get advertising prices or to request a copy of the media pack for 2012 please contact: David Kelly on +44 (0) 203 551 5754 or david@tankstoragemag.com For editorial information please contact Margaret Garn on +44 (0) 208 687 4126 or margaret@tankstoragemag.com

Bonus distribution: Exclusive delegate bag distribution at Tank Storage Asia

www.tankstoragemag.com

• Welding • Tank heating • External floating roofs and domes • Metering/ measuring, custody transfer, overfill prevention • Wireless technology • Tank coatings, linings, insulation and blasting • Tank lifting and relocation • Chemical storage • Wastewater treatment 2013 media pack now available please contact David Kelly for details

Storage tank safety systems trusted the world over Angus Fire has many years’ experience supplying fire protection, fire fighting equipment and fire fighting foams to the petrochemical sector, safeguarding flammable liquid hazards both on and offshore. The combination of highly volatile flammable liquids and high temperatures involved in petrochemical processes, presents a unique challenge to fire fighters. Angus fire fighting equipment is designed for long and reliable service in the hostile conditions and environments encountered in this industry, from desert heat to arctic cold; and our fire fighting foams are specially formulated to maximise performance, whilst minimising environmental impact.

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24/02/2012 18:50


Lightning protection

September 2012 • TA N K S T O R A G E

API 545 has devoted much time and study to the subject of lightning protection. Whereas there are many options available to protect a tank, often a reliable, low-cost option may offer the best solution

Sometimes simple really is better

The lightning protection bonding on a tank is a cost item...therefore, employ the least complex, lowest cost system that performs as required

beneath it. When lightning attaches to a tank or other object on the surface of the earth, the charge at the point of attachment changes dramatically and almost instantly. The surrounding ground charge rushes toward the point of the strike. If that in-rush of charge crosses a gap, it may arc. If that gap is between the floating roof and the side of the tank shell, and there are flammable vapours present, those vapours may ignite. Another way of looking at this phenomena is to consider a lightning attachment to the shell of the tank. The tank shell changes potential almost instantly. The floating roof, being somewhat electrically isolated from the shell, does not. That difference in potential between the floating roof and the tank shell must equalise. Unless a preferred path is provided, a potential equalising arc may occur, once again igniting any flammable vapours present.

A

lightning strike consists of two components: a short duration, high-energy spike, followed by a longer duration, lower energy tail. While the high-energy spike is truly impressive, it is the lower energy, long duration component that is actually responsible for ignitions in tanks. The roof of the tank floats on pontoons on the stored product. It is centred in the tank shell by centring shoes. Vapour is contained by a primary and a secondary seal. These tanks have traditionally been equipped with flexible, stainless steel grounding shunts extending over the secondary seal and spaced at frequent intervals (10” maximum) around the perimeter of the floating roof. Additionally, the floating roof is usually bonded to the tank shell with one grounding conductor run along the stairway from the top of the tank shell to the floating roof. Lightning becomes an issue when it strikes either the floating roof, the tank shell, or nearby. Ignition is not normally caused by the heat of the lightning channel igniting venting vapours; it is caused by arcing from the secondary effect of lightning. A thunderstorm is an electrically charged cloud mass, with a charge, usually negative, at its base. That charge induces an opposite charge, usually positive, on the surface of the earth

grounding shunts around the perimeter of the floating roof. These shunts are attached to the roof, and bent upward and outward to press against the tank shell wall. They ride against the tank shell wall, up and down as the roof rises and falls. The electrical contact to the wall is only good, however, when the tank is new and the wall is clean. After a few trips up and down, the tank wall becomes coated with a variety of substances that compromise the electrical bond. Because of the short length and frequent spacing of these shunts, they are the preferred path of

equalisation between the floating roof and tank shell for the high-energy short duration component of the lightning strike. API 545 recommends employing these shunts for this purpose. However, because of the imperfect electrical connection to the tank wall, these shunts tend to emit a shower of sparks when they perform their intended function. One solution suggested by API 545 is to relocate these shunts so they are submerged under the stored product and there is no oxygen available at the source of the sparks to support ignition. This may create other problems when the roof is landed, thus will be the subject of another article. To address the lower energy, long duration component of the lightning strike, API 545 recommends the installation of bypass conductors between the floating roof and tank

Solutions Most tanks are equipped with flexible stainless steel 101


Lightning protection

shell at intervals not to exceed 100’ around the roof perimeter. These conductors provide a low-resistance bonding path between the roof and tank shell, and are intended to prevent ignitioncausing arcs generated by this current flow. Several iterations for this bonding by-pass conductor have been offered in recent years. In the late 1990s, US-based equipment supplier Lightning Master designed a grounding reel in response to a request by Engineering for the Petroleum and Process Industries (ENPPI) in Cairo, Egypt. This reel system was similar to that used to bond a fuel truck to an airplane, with several important differences. This system employed a flat, braided, tinned copper strap. The strap offered lower surge impedance than a round conductor, and, as the strap retracted into the reel, it was pressed against the inner windings of strap, effectively shortening the overall length of the conductor. Because of the high cost and questionable durability, the company elected not to produce this system. Indeed, as the by-pass conductor is intended to address the lower-energy, longer duration component of the lightning discharge, 102

it turns out that almost any conductor of sufficient size is adequate for this propose. Simply attaching a length of conductor from the edge of the floating roof to the top of the tank shell is adequate. However, the problem is keeping this conductor out of trouble. In response to this need, the company developed a simple, reliable, low-

TA N K S T O R A G E • September 2012

cost by-pass conductor solution (patent pending). It consists of an adjustable mechanism that attaches mechanically and electrically to the perimeter of almost any type of floating roof. It may be ‘aimed’ to miss tank appurtenances that may foul the conductor. The conductor runs through a tube from this anchoring mechanism to the top of

the tank shell. The tube encloses and supports the conductor for slightly under half its length. An appliance is attached to the end of the tube to govern the bending radius of the conductor as it exits the tube. The conductor is then run back to the top of the tank shell. There it attaches with another appliance designed to govern its bending radius, assure that it is electrically bonded to the tank shell wall, and prevent it from fouling on tank appurtenances. Is there a difference in performance between a retractable reel system and a simple conductor? Theoretically, yes, practically, no. The electrical performance of a simple conductor is adequate to the required task. Additionally, the simplicity of the simple conductor system, enhanced by a mechanism to reduce stresses and keep it out of trouble, indicates a system that will provide years of reliable and trouble-free service at a greatly reduced cost. The lightning protection bonding on a tank is a cost item. It does not make the tank better, last longer, or store more product. It simply provides lightning bonding. Therefore, employ the least complex, lowest cost system that performs as required. n


inspection

September 2012 • TA N K S T O R A G E

The quality of any tank assessment depends on the accuracy of measurements as well as the probability of detection

‘Rubbish in

equals rubbish out’ S

torage tank corrosion inspection is an essential part of asset management, being used not only to certify safe operation, but also to predict expected lifetime, devise a repair strategy and assess the impact of different contents stored. In specifying the inspection to be performed, and in assessing the quality of the final report, it is important that engineers understand the key measurements made in terms of accuracy and reliability. It is an old adage for any system that ‘rubbish in equals rubbish out’, and this applies equally to tank inspection. API 653 and other standards are well established to determine tank condition, using input data collected from inspection equipment, operated by inspection personnel. If the key data is of poor quality, then the assessment is also likely to be of poor quality. The type of equipment used in the inspection is therefore critical to good assessment and subsequent operational decisions. The goal is to have a high quality inspection completed in a reasonable amount of time. Time is a fairly well understood factor, but considering the ‘quality’ aspect is more complex. This is broken down into two distinct factors: accuracy of measurement and probability of detection.

Accuracy of measurement (AoM) This determines the tolerance on a particular measurement

RMS600 system producing a C-scan of the tank wall

of corrosion at a given point, and this is initially based on the accuracy of measurement of the basic instrument, but is then affected by actual on-site conditions. Ultrasonic testing is often used to measure corrosion and in theory, this can be highly accurate, with gauges giving readings +/- 0.01mm. However, when this is applied to actual defects, with difficult surface condition and typical corrosion as opposed to manufactured test defects, this accuracy often reduces to +/- 0.5mm or worse. To understand the achievable accuracy, the basic instrument is considered and then de-

rated accordingly depending on the practical application.

Probability of detection (PoD) Tanks are very large structures and tank floors can have a very large area that needs to be inspected. Inspections are attempting to find the ‘needle in the haystack’, looking for the thinnest section a few millimetres in diameter within a tank diameter of 80m plus. The probability of detection assessment is a measure of the likelihood of a defect of a certain size being found with the whole test area. Obviously the key factors here are

the actual percentage area covered by the inspection, and the ability of the instrument to detect the minimum defect. The greater the area covered, the greater the chance of finding the defect; however this can take a significant amount of time given the total area to be scanned, so a fast coverage method is needed, such as magnetic flux leakage (MFL). In practice only two of the three criteria can be met by a single system. For example, high accuracy and detection is possible, but this will take significant time. High detection is possible in less time, but with less accuracy. 103


inspection

TA N K S T O R A G E â&#x20AC;˘ September 2012

Alternatively, high accuracy is possible quickly but with low detection probability. These challenges have been known for many years and the original work completed by D.H. Saunderson in 1988 resulted in the combination of MFL tank floor scanners and ultrasonic flaw detectors. The MFL system provided fast scanning over a high percentage of the tank floor, indicating areas that should be measured more accurately, albeit at a much slower pace, by ultrasonic devices. This has continued to be the most widely used process, with the latest MFL scanners mapping the area and storing the results for analysis and then typically using ultrasonic measurement on a sample of defects, say 20% of the total. The MFL increases the probability of detection and UT provides the hoped for accuracy. Manufacturers of test equipment, such as UK-based Silverwing, are continually working to improve both the PoD, and the AoM, coupled with efficiency of inspection.

Sample data report from Silverwing Floormap3D showing defect indications on the tank floor

Corrosion on walls

of thickness, gives a very low PoD. It is quite possible that the sample readings miss any corroded bands

When analysing corrosion on the walls, it is just as

How newer technology can improve detection of smaller defects:

Plate thickness

Percentage wall loss

80% 60% 40% 20%

Percentage wall loss

80% 60% 40% 20%

6mm 100% 100% 100% 100%

100% 100% 100% 20%

8mm 100% 100% 100% 100%

100% 100% 100% 20%

10mm 100% 100% 100% 80%

100% 100% 100% 40%

12mm 100% 100% 100% 40%

100% 100% 100% 40%

Silverwing Floormap3D Silverwing FloormapVS2i

The latest system has a much higher PoD for a small amount of wall loss over the whole range of plate thicknesses. MFL systems achieve high detection rates as they are less sensitive to surface condition and shape of the defect than ultrasonic, and the inherent speed of scanning allows for very high percentage of coverage. The disadvantage has been the inability to reliably convert a percentage loss of plate thickness into remaining plate thickness, as can be achieved with ultrasonic testing. Ongoing research into MFL characterisation is showing positive results in this respect. 104

difficult to decide which methods are best. Very large areas could contain small defects, but in practice corrosion tends to occur in bands around the tank just above the fluid level, so it is often possible to accept thickness measurements at a defined number of radial points with readings taken vertically. Access can be difficult and time-consuming, due to the need for scaffolding if measurements are done by hand, but magnetic ultrasonic crawlers can overcome this. Often only a limited number of readings are taken per course, which whilst â&#x20AC;&#x2DC;accurateâ&#x20AC;&#x2122; in measurement

and give a false impression of tank integrity. To overcome this, systems such as the Silverwing Scorpion crawler can take measurements in a continuous line and record the information for review. This significantly increases PoD of corrosion, and hence improves the tank assessment. Other more advanced scanners such as the Silverwing RMS can give 100% coverage in a band up to 600mm wide from the base to the top of the tank wall, increasing PoD significantly. One factor affecting both accuracy and detection is the competence of inspection technicians.

Modern inspection systems remove a lot of operator interpretation of readings, particularly using MFL, but a level of skill is still required to ensure the maximum area of the tank is scanned in the most efficient manner. Good technicians are also able to perform internal and external visual inspections, which can then focus detailed inspections into the right areas. The quality of any tank assessment is dependent on the quality of measurements, which include not only accuracy, but also the PoD. The engineer should consider both these factors when specifying the inspection to be done, and ensure that inspection teams use the appropriate methods. This will normally be a combination of fast scanning systems for detection, backed up by targeted higher accuracy measurements. Equipment manufacturers are working to improve both of these aspects, improving the overall quality of data, and hence tank assessment, while taking as little time as possible. n

For more information:

This article was written by Wayne Woodhead, CEO Silverwing Group of Companies, wwoodhead@silverwingndt.com


PAGE HEADER

September 2012 • TA N K S T O R A G E

World-leaders in storage tank design and construction

Design – Engineering – Manufacture – Construction – Repair – Maintenance

Motherwell Bridge is a world-leader in the build and maintenance of storage tanks. We offer a complete range of services across all our divisions including design, engineering, maintenance, on site build and full project management. Ensuring quality and accuracy at all stages, these services are highly regarded by our clients worldwide. Motherwell Bridge has more than 100 years’ experience internationally and in the UK including some of the most prestigious and innovative projects in the world. Our projects are completed accurately and efficiently by a highly skilled and experienced workforce, keeping costly downtime to a minimum. As a progressive company we are dedicated to continually

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Motherwell Bridge, The Bridgeworks, Logans Road, Motherwell, Scotland, ML1 3NP, United Kingdom 101


AUTOMATION

TA N K S T O R A G E • September 2012

James Barrett visited France-based port operator Fluxel as it upgrades its internal systems to look towards increasing future business

Upgrading to face a diverse future

F

or the past year the Martigues-based oil ports of Lavera and Fos, which are a short drive away from Marseille in the south of France, have been operated by newly formed company Fluxel. Born out of the French Harbour Reforms implemented in 2008, Fluxel has hosted more than 3,200 vessels and turned over €32 million over the past 12 months since the Marseille Port Authority assigned Lavera and Fos under its stewardship. And Fluxel has recently updated its maintenance systems through a partnership with maintenance management software solutions provider Carl Software as, although the port has seen a drop in visiting workload, it wants to streamline its processes to make sure it is ready to handle any future increase.

Over reliance

Docking at Fos – Fluxel handled 50 million tonnes of product in its first year of operation

Lavera and Fos between them handle deliveries of both crude and refined oil, LPG and chemicals with distribution to nearby customers, like Esso and even a NATO pipeline. But Fluxel CEO Michel Peronnet says diversity will be the key as he continues to steer the current leading French port operator into the future. ‘Fos welcomed over 1,000 vessels over the past 12 months and it can handle the largest of crude oil supertankers, where as Lavera had over 2,000 port visits and can look after LPG tankers up to 85,000m³. However, due to the closure of plants and refineries

in Strasbourg, France and Cressier in Neuchâtel, Switzerland) in 2011 as to reasons why that happened. ‘We served eight refineries when we first started and now that number is five, so it is a bit of a worrying trend,’ Peronnet says. ‘However, there is always some positive news on the horizon as Cressier may reopen under the new ownership of Varo Holdings (a joint venture between Vitol Group and AtlasInvest) by the end of 2012.’ Peronnet is well aware that Fluxel and its ports rely heavily on crude oil

106

‘Which one has the movies channel?’ – working at the Fos safety control deck

throughout Europe, we have not been working at full capacity,’ he explains. Peronnet points to the mothballing on New Year’s Day of the Lyondell Basell-

owned refinery in Berre, France (which produced 105,000 barrels of oil a day), plus the closure of two plants under the Petroplus brand (Reichstett


AUTOMATION

September 2012 • TA N K S T O R A G E turnover and he believes this dependency will not be sustainable. Of the 50 million tonnes of product Fluxel handled in its first year, over 65% of it across the board was crude, but it only came from 13% of visiting ships. He believes there will be an increase in refined products moving forward. ‘A reduction in crude oil tonnage should mean an increase in imported refined product and, for Fluxel, that would mean dealing with smaller-sized ships. However, it shouldn’t mean we’d be any less busy and we must diversify our offering to be able to handle any changes,’ he adds.

New phase Carl Software has been working with the Marseille Port Authority since the autumn of 2008 and, before that, Peronnet remembers the old days before the internal maintenance systems were dragged

The port of Fos welcomed over 1,000 vessels over the past 12 months

into the 21st century. ‘We used to work with a paper-based, quality assurance system with many folders and spreadsheets containing all the valuable information,’ he laughs.

‘When Fluxel was created, we used Carl Software’s Master system until it offered us the opportunity to upgrade to its new Source version.’ The ability to help get ships in and out of port

as efficiently as possible, and the fact that all the maintenance could be handled in-house, were the two main reasons why the new Source system was attractive to Fluxel. ‘Many ports outsource all maintenance queries and repairs and it takes time to get positive results back,’ says Carl Software’s publisher Jerome Plisson. ‘We effectively act as an on-site halfway house to help reduce waiting times for docked ships.’ Plisson explains that all requirements and demands across all facilities can be managed across one grid and be easily accessed from any device that can host the internet. Peronnet and his colleagues were so impressed that they allowed those members of staff extra time to get to grips with Source, while organising the transfer of all databases that concerned equipment and facilities – a task that took about two days. n

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ILTA conference review

TA N K S T O R A G E • September 2012

The ILTA held its 32nd Annual International Operating Conference and Trade Show on 21-23 May in Houston, Texas. Close to 3,500 people attended the event and over 300 companies exhibited, the most in the history of the show Source: Barchfeld Productions

Small R

is beautiful

obert Bryce, a US energy expert and journalist, opened the ILTA in Houston by giving an overview of the energy sector over the last decade. He spoke about what he sees as the fundamental flaw in US energy policy, especially when it comes to public opinion on green energy. Green energy, such as solar, wind and biofuels is favoured over more traditional sources such as coal, natural gas and oil, but, he said, it is all just hype. ‘These types of energy cannot provide the scale 108

More than 300 companies exhibited at the 2012 ILTA trade show

that the world demands,’ he said. ‘Shale, on the other hand, which is changing the US’ outlook when it comes to domestic energy production, can – but it is facing huge opposition.’ Like most energy sources, oilfields are effectively worthless unless the oil can flow to where it is needed. ‘The faster we can make energy flow, the richer we are,’ Bryce explained. Yet President Obama has so far stopped the Keystone pipeline twice, a project with the potential to provide the US with 40% more energy than all of the

solar energy and wind turbines in the US put together. ‘One pipeline has the potential to provide more energy to the US than 97 square miles of wind turbines,’ he explained. Bryce believes it is important for people to understand the difference between renewable energy and renewable power. ‘It doesn’t matter what the energy is, the important thing is what it provides – power to turn on lights or drive vehicles.’ The important question is how to turn highly intermittent solar

and wind energy into costeffective, reliable power. ‘Imagine you’re a taxi driver,’ he told the audience, ‘and the government mandated you operate a windpowered taxi. The problem is this would only work a third of the time. Then the taxi driver would have to own two cars, so where’s the benefit?’ All that matters is that power is cheap and reliable. Texas, for example, has installed more than 10,000MW of wind energy. Yet when the temperature soars the demand for air-conditioning power can reach over 60,000MW. And on


September 2012 • TA N K S T O R A G E

Source: Barchfeld Productions

Keynote speaker Dan Burrus, a technology futurist, spoke about how technology is continually changing the rules of competition, rendering many traditional business strategies and processes obsolete

over the world and increase US oil production by up to 2 million barrels a day.’ Over the past few years consumers have saved billions of dollars as a result of the reduced price of natural gas. Between 2005 to 2008, US natural-gas prices averaged about $7 (€6) per thousand cubic feet. It is now around $3. This price reduction is now saving American consumers about $264 million per day. Coming back to the audience’s target market, Bryce explained that shale growth is leading to a demand for more storage. He also noted a trend for growth in Africa, and explained

that the opportunities for storage operators are enormous, if companies are brave enough to work there. In Brazil he expects Petrobras to double its production in the next 10 years and in Panama the number of ships travelling the canal will also double, another positive for those in the storage sector. Australia, the Middle East and China are other growth areas he pointed out to the audience. After this thought-provoking keynote the conference began in earnest. A particular highlight came from Lance Nunez, a marine specialist at

Dow Chemical, who gave a different perspective on the terminal sector – one from a customer’s point of view. The company, which is the second largest bulk chemical shipper in the US, uses 150 third party terminals worldwide. But before it uses any facility it performs an environmental health and safety risk assessment, to ensure its products are not part of collateral damage. And, said Nunez, Dow did opt to exist from three terminals last year as a result of safety concerns. Although Dow prides itself on being 99.97% incident free, any incident associated with Dow transportation or storage still has an impact. In each EH&S assessment Dow wants to ensure the terminal is operating as per industry standards. For each report improvement opportunities are reviewed with terminal personnel to develop effective corrective actions, including a timeline for implementation. Terminals performing satisfactorily are assessed every three years. ‘A good terminal will look for ways to pass on information and avoid future incidents,’ Nunez explained. ‘Good terminals are paranoid.’ Some terminals are worried about embarrassing the management team, but this cannot be a concern. Every facility has some amount of ‘bad’ news. Mindful leadership seeks out and encourages the upflow of bad news. ‘Do not let abnormal issues become normal,’ Nunez added. ‘Address issues when Source: Barchfeld Productions

extremely hot days, the wind is very light, meaning that on some days only 900MW of wind power is available. The renewable industry is being encouraged to sign power purchase agreements. These agreements are for energy though, not power. As in the wind example, there is little point supplying energy only when the demand for it is low. Using another analogy, Bryce asked: ‘Imagine if you pulled up at a petrol station and were told to come back at midnight when it’s cheaper?’ Another drawback with wind power is the noise it produces. ‘People say they don’t like oil and gas but try talking to those that live near wind farms – the low frequency noise they produce often proves unbearable.’ What is green, Bryce believes, is not the type of power, but its density. Wind turbines have a power density of about 1W/ m2 so the kinetic energy is extremely diffused. By comparison, a relatively small natural-gas well that produces just 60,000 cubic feet of gas per day has a power density of 28W/m2. And the power density of ethanol is fractions of 1W/m2. BP’s oil spill got slated for its environmental impacts, but had it proved successful it would have produced 50,000 barrels a day and had a power density of 127,000W/m2. Oil companies deserve some credit for taking company killing risks in order to achieve a power density equivalent to a nuclear reactor. The key is: small is beautiful. Take computers for example. Since their inception, their size has decreased dramatically, whereas their power density has increased 79,000-fold. There were no EPA mandates requiring this, it just made sense. It is the same with cars. Since their birth, Ford has increased the car’s power density more than 15 fold. Yet in the renewable sector, people want the opposite: low energy density, irregular power supply and at a very high cost. Coming back to shale gas Bryce believes this is one of the most important energy discoveries, ever. ‘It is a model that can be replicated all

ILTA conference review

The ILTA conference focused on a variety of operational and business topics along with environmental, health, safety and security issues 109


ILTA conference review

Source: Barchfeld Productions

they first crop up and do not let errors accumulate.’ Regular spotchecks of checklists and other routine paperwork is highly encouraged. When leaders walk by and do not correct things, this sets the standard for everyone else. Nunez also emphasised the importance of introducing metrics. Using the analogy of the man who can eat 50+ hot dogs in 12 minutes, Nunez explained it is important to set goals. ‘Humans are hard wired to reach goals and perform better, so leaders must set these goals. And if a mistake is made it is important to find out why – insufficient training? Fatigue? Lack of management?’ Well designed and executed preventative maintenance programmes increase the reliability of equipment, justify maintenance budgets and reduce downtime. It is important to have regular reviews rather than waiting for an incident to happen. In one example that Nunez provided, an overflow occurred but the high level alarm did not go off. The terminal was a decade old, but the high level alarms were not tested on a regular basis. It turned out that the high level alarm was connected in series, so when one went off, the others did not. The alarm that should have gone off was on an out of service tank two years ago. This goes to show the importance of a regular maintenance plan. Inaccurate preventative maintenance is the second

TA N K S T O R A G E • September 2012

Attendees at the trade show were able to compare products and meet with suppliers from all over the world

biggest common cause of incidents. The number one cause is inadequate training. Using another topical anecdote Nunez painted the scene in Japan 2011, when the world’s largest structure, a $1.6 billion sea wall, failed. But one junior school had an emergency response plan in place. The pupils had lessons on first aid, the science of tsunamis and regularly practiced drills. However when the actual tsunami happened, the power was cut so they could not use microphones, and they had to adapt the plans. Even so, and despite the school building being destroyed, all the students survived. This again shows the importance of knowing your scenarios. Now there are different risks to consider. Take epidemics for example, what is the minimum number of people you need to run a terminal? And how would you respond to a cyber attack?

Developing on this theme, Daniel Michaud-Soucy, a network engineer at Red Tiger Security, gave an in depth presentation on the risks of cyber security attacks. In the past all we had to worry about was physical attacks, but now that has all changed. Worryingly malware can spread at the rate of 125 machines per second, so it is not something that can be ignored. Michaud-Soucy gave an example of a simple attack where companies were giving out free computer mice. Hidden within these were secret USB ports, capable of readily copying and storing company data. Of course the danger gets a lot more sophisticated than this. In fact, there has been a 753% increase in vulnerability disclosures to the Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) over the past year. Source: Barchfeld Productions

Seven terminal companies received special recognition for participating in ILTA’s annual safety survey each year since inception of the programme in 2003 110

Another highlight from the conference came from Mike Dodson at Kinder Morgan, who spoke on the issue of safety, quality and environmental compliance. Since 2004 there have been eight Kinder Morgan employee and seven contractor fatalities. And in 2010 3098 people were injured, so something had to be done. Now, Kinder Morgan is providing a culture of continuous improvement to make sure all employees are trained to ‘do the right thing every day’. Dod soon took delegates through the company’s core principles. Firstly safety must not be compromised, meaning that all employees commit to putting their own safety and those of others around them, first. Secondly all employees must operate in accordance with the permit requirements and the laws governing the operation of their facilities. Also, Kinder Morgan will honour its contacts and relationships and ensure its employees know what is right and fair. As a result of these principles Kinder Morgan found that its Mine, Safety & Health Administration violations peaked in 2011 and will drop substantially in 2012. These were just some of the presentations given at this year’s event, and after another successful event planning has already started on the next one. The 33rd annual conference and trade show will be held on 3-5 June – different time, same place. n

Safety awards Platinum Safety Award for a large terminal: CITGO Petroleum Corporation: Platinum Safety Award for a small terminal: Motiva Enterprises – NJ Complex: Safety improvement award: TransMontaigne Product Services The 2012 Safety Excellence Award (presented to terminal companies that achieved a safety record of less than one injury per 100 workers in 2011: • Asphalt Operating • Marathon Petroleum Services; Company; • Buckeye Terminals; • Murphy Oil Corporation; • Enterprise Products • NuStar Energy; Partners; • Petro-Diamond Terminal; • Flint Hills Resources; • Sunoco Logistics • Hess Corporation; Partners;


September 2012 • TA N K S T O R A G E

PAGE HEADER

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PAGE HEADER

TA N K S T O R A G E • September 2012

On 16-17 October Tank Storage Canada Expo & Conference, now in its fourth year, will take to the Telus Convention Centre in Calgary

Tank Storage

Canada preview

S

urface preparation company Blastrac provides shot blasting equipment which it says is a cost-effective and environmentally friendly method for preparing steel, concrete and asphalt surfaces. Blastrac will be exhibiting

its Blastrac 500E steel blaster at this year’s Tank Storage Canada. This machine is suitable for tank cleaning top exterior surfaces, while its modular assembly allows it to easily fit inside storage tanks for cleaning and blasting the bottom interior surfaces.

Coupling Blastrac’s 500E blaster with the company’s 8-54DCG1 dust collector can reduce airborne dust admittance 108


PAGE HEADER

September 2012 • TA N K S T O R A G E

The Bullard GenVX headgear from ISP Canada

Updated with a 35hp motor, Blastrac says this latest design is 20% more productive than previous models and reduces tank downtime, therefore minimising labour costs. Sharing a stand with Blastrac is International Surface Preparation Canada (ISP Canada), a full line distributor of abrasives, replacement parts, equipment and services for both industrial and commercial surface finishing needs. The company offers a wide range of recognised brands in wheel blasting, abrasive air blasting and vibratory mass finishing equipment, enabling the company to offer a number of solutions for a whole host of surface preparation needs. ISP Canada will be exhibiting its Bullard GenVX head protection at the show this year. This helmet is one of the lightest available on the market today and

also features a 45 degree cool tube and cheek pads for cool comfort. Visit Blastrac and International Surface Preparation Canada at stand D11. Hayward Baker, part of the Keller Group, specialises in geotechnical construction for the North American market and has performed ground improvement at over 200 tank sites. HB Wick Drains, a division of Hayward Baker, specialises in the design and installation of wick drains to drain saturated soils at planned tank sites to accelerate a preload programme. The company works to determine the most appropriate ground improvement solution for each individual site and offers a complete improvement package. Tanks built over compressible or liquefiable soils can experience

Fluid Control Systems: • • • •

Additive & Dye Injection Bio Fuel & Chemical Blending Fuel & Chemical Loading Pump Sets & Pump Control

Vehicle & Plant Access Solutions: • • • • •

Truck & Railcar Loading & Access Portable Access Units (Rolling Ladders) Modular Industrial Stairs & Platforms Barge & Ship Loading & Access Spill Containment

Control & Automation: • • •

Electrical & Pneumatic Control Panels PLC Systems and Services HMI / SCADA / DCS

Superior solutions and services that exceed customers’ expectations

Hayward Baker has worked on over 200 tank sites

For further details please contact: sales@FlotechPS.com www.FlotechPS.com Telephone: +44 (0) 1472 268852 109


Organiser: PAGE HEADER

TA N K S T O R A G E • September 2012

VII Annual International Congress & Exhibition

Transportation, storage & transshipment of liquefied gases, crude oil & products

27-28 November 2012, St-Petersburg

THE 2012 EVENT INCLUDES:

2012 SPONSORS:

• “Innovative Technologies and Equipment for Tank Farms and Oil Terminals”

CONFERENCE

Gold sponsor

• “Tank Farms and Liquid Bulk Terminals” EXHIBITION • AWARD

CEREMONY “Oil Terminal 2012” • CONGRESS on Transportation, storage and transshipment of liquefied

Silver sponsor

gases, crude oil and oil products • MASTERCLASS “How to manage your oil terminal safely and profitably” • TRADERS

DAY • ONSITE VISIT to The Transneft Baltic Pipeline System-2

400

IN 2012: MORE THAN

DELEGATES

AMONG THE PARTICIPANTS OF 2011:

40

Oil terminals and tank farms

15

Representatives of Russian and European ports

10

Representatives of federal authorities

40 35

Logistics, shipping and bunkering companies

Silver sponsor

Bronze sponsors

EXHIBITORS AND SPONSORS

55

2011 SPONSORS:

Oil and traiding companies

2011 PARTICIPANTS: Baltic Oil Terminal, AB Klaipedos Nafta, Novatek Ust-Luga Terminal, Gazpromneft Terminal SPb, Specialized Oil Loading Sea Port Primorsk, SC Condensate Refinery, TNK-BP Management, Altyn Kyran Refinery, Baku Cargo Terminal, Dagnefteprodukt, E.R.S. Ltd., Inter Terminals, Мangistaumunaigaz Refinery, Batumi Oil Terminal, Marka-Oil, Oiltanking Sonmarin Oy, OTEKO-Terminal, Petersburg Oil Terminal, Petro Carbo Chem Mukachevo Terminal, Gazpromneft Marine Bunker, PSC TAIF Refinery, RN-Nakhodkanefteprodukt Terminal, RPK-Vysotsk LUKOIL-II Terminal, SIA «Ventall Terminals», TAIFNK PSC, PTK-Terminal, Terminal Sapernyi, Ventspils Nafta Terminals, Port of Amsterdam, Port of Tallinn, Lukoil Trans Terminals, Primorsk Oil Terminal, Rosbunker, BaltTransService, Yeisk-Port-Vista, Belarusian Oil Company, Euro Gas Doo, Fedmor LTD, Gazprom Export LLC, Gazpromneft-Center, IPCO Trading, Vesta Terminal Tallinn, Sovfracht-Primorsk, Kuatamlonmunai Refinery, RosEstPetronal, Lia Oil S.A., New Stream Trading AG, Novokhim Refinary, Petraco Oil Company-Guernsey, Bashneft JSOC, Port of Rotterdam, Petreks, Gazprom Neft JSC, PetroBaltica, RN-Trading, GE Logistics, Sakhalin Energy Investment Company Ltd, SIBUR Refinary, Surgutneftegas JSC, KazMunaiGaz AG, Totsa Total Oil Trading SA, Petroline, WSP Processing JSC, Ameca Freight & Logistics FZE, AP Moller, GAC Shipping and Logistics, Gradalogistic, «Gazpromneft-Logistika», Marine port service, Oil Bunker, Oil Logistic&Trading, OJSC «Rosneftbunker», Piter-Nord, Shipping company Bashvolgotanker, TatneftBunker Co, Ventbunkers AS, Siburtyumengaz and many others.

110

Tel: +7 499 505 1 505 (Moscow); Tel: +44 2073943090 (London); fax: +44 2072311600 e–mail: info@vostockcapital.com

www.oilterminal.org


Tank Storage Canada preview

September 2012 • TA N K S T O R A G E settlement that threatens the integrity of the tank structure. Before construction, ground improvement methods are available to control total and differential settlement to within tolerable limits, resist seismic loading and realise significant cost savings over deep foundation systems. Common pre-construction ground improvement techniques include soil mix columns, mass mixing, vibro replacement (stone columns) and aggregate piers. For existing tanks, settlement can be controlled with specialty grouting techniques that offer limited access constructability, pinpoint treatment, void filling and floor lifting, and re-levelling. Jet grouting and compaction grouting underpin tanks to stop settlement and can be performed in limited access, and compaction grouting can also re-level tanks. Compaction grouting and slurry grouting fills voids and lifts floors. Visit Hayward Baker at stand C4.

overcome a number of challenges including ways to reduce emissions, optimise tank capacity, reduce stranded inventory and engineer a tank system that exceeds safety standards and maintenance intervals. Visit HMT at stand D13.

HMT’s solutions for aboveground storage tanks offer a number of advantages

HMT, dedicated to providing better technology to the aboveground storage tank market, says it has a unique approach of partnering with its customers to optimise their tank operations. The company draws on its years of experience to offer customised solutions that help tank operators become more efficient, more productive and more profitable. HMT’s full suite of tank

products includes: • External and internal seal systems • Drain and floating suction systems • Geodesic domes • Skin pontoon floating roofs • Full contact floating roofs • Emissions reduction devices. HMT’s global team of engineers, project managers and field personnel have helped tank operators

Lightning Master is a provider of lightning and static protection solutions. The company has been supplying full service and full spectrum static solutions to the oil and gas and chemical industries since 1984. The company provides its customer support across North America, from Canada’s Oil Sands to the Eagle Ford in Texas, and also has operations in Asia with Yantai Lightning Master, China and Lightning Master Singapore. Lightning Master’s solutions include: site survey and evaluation; system design; products, including bonding and grounding, surge protective devices, structural lightning protection and LMC in-tank static

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To see how we can help, contact Joseph Quinn E: joe@crescomarketing.com T: +44 (0) 7779 636048

115


Tank Storage Canada preview dissipaters (patent pending); and customer service. Visit Lightning Master at stand D10. Park Derochie provides turnkey shop and field services specialising in tank exteriors and linings, secondary containment, UHP water jetting, corrosion under insulation, pipe coating and underground pipes. In addition to the petrochemical and pipeline industries, the company’s markets include power plants, process plants, railcars and offshore drilling platforms. Derochie says it has been experiencing continued growth and diversification of services since 1956 and today is one of Canada’s key industry contractors in all forms of industrial coatings, fireproofing, mechanical insulation, as well as scaffolding, abrasive blasting, containment and maintenance programmes. It also has clients in the US and South America. The company adheres to the stringent standards set out by the Society of Protective Coatings (SSPC) and is guided by the ISO 9001-2000, which means its Quality Management System is able to meet the specific requirements of the client. Derochie says its package of coordinated services, which is delivered through a single project manager, results in enhanced project coordination and translates to time and cost savings for all projects. Visit Park Derochie at stand C10. Sandborn Roofs is a manufacturer of full contact floating roof systems that help

reduce harmful emissions from aboveground storage tanks. The company’s floating roof systems are exported throughout North America and around the globe. In addition, Sandborn Roofs is a key Canadian supplier of mechanical seal systems used on internal and external floating roofs, foam log seal kits, wiper seal materials, external floating roof hose drain systems and geodesic domes. Sandborn Roofs is a full service provider for floating roof installations and inspections. Visit Sandborn Roofs at stand B15. Specialty Polymer Coatings is a formulator, manufacturer and distributor of state-ofthe-art, 100% solids (no VOCs) liquid epoxy and polyurethane coatings. The company has a broad line of coating systems which are utilised extensively in the pipeline industry, on railway

Tarsco provides storage tank services to a range of industries

cars, linings for tanks and sewage digesters and on steel structures, as well as marine docks and ship applications. Visit Specialist Polymer Coatings at stand C9. Tarsco, a subsidiary of the TF Warren Group, provides aboveground storage tank construction, repair and maintenance

Specialty Polymer Coatings’ polyurethane coatings are suitable for pipelines

Sandborn Roofs’ full contact floating roof systems reduce emissions from aboveground storage tanks 116

TA N K S T O R A G E • September 2012

services to a number of industries including terminal/ pipeline, petroleum refining, chemical processing and alternative fuels. With operations located throughout the western hemisphere, Tarsco is well positioned to deliver services to its domestic, as well as international, clients. The company uses its engineering, procurement, fabrication and construction (EPFC) approach to deliver a total tank solution, including shop or field application of coatings or rubber linings.

Tarsco’s product portfolio includes tank types including flat bottom, low temperature and thermal energy storage; roof types, including floating, dome and geodesic dome; and other services, including floating roof seals, leak detection and secondary containment. Visit TF Warren Group/ Tarsco at stand B18. Volatile Corrosion Inhibitor (VCI) manufacturer Zerust will be exhibiting its products at this year’s Tank Storage Canada. VCIs are specially formulated liquid or solid chemicals which volatise into a vapour and equalise with the atmosphere inside an enclosure. As they equalise in the enclosure, they can protect the steel surfaces of the structure by adsorbing to the steel surface and blocking corrosive molecules such as oxygen, acid gases and moisture from reaching the steel. They can also scavenge these molecules in the vapour space by attaching and rendering the molecule inert. VCIs are capable of protecting steel in many environments, including: • Storage tank vapour spaces under the roof • Between wiper blades of floating roofs • Soil side bottoms of tank floors • Pipe flanges and valves • Electrical panel enclosures • For mothballing or lay-up • For shipping and storage. Designed to reduce corrosion rates of the steel and extend the life of the asset, VCIs are an efficient and cost-effective way to reduce corrosion. Visit Zerust at stand B9. n


TSA preview

September 2012 • TA N K S T O R A G E

Competition is fierce for just 29 exhibition booths at the UK’s annual Tank Storage Association’s Conference & Expo in Coventry. Some of the lucky exhibitors reveal here what it is they’ll be exhibiting

Another sell out show Axiom Engineering Associates specialises in mechanical and materials engineering consultancy and is UKAS accredited to provide comprehensive inspection services. For the owners and managers of bulk storage installations, the nightmare scenario is a leak or plant failure. To avoid this kind of incident Axiom offers corrosion testing, corrosion inhibitor testing and vessel design, including specialist advice on construction/ lining materials and risk assessment. The company also offers scenario testing if ‘change of use’ is introduced for vessels, pipelines and pumps, enabling clients to identify issues and manage maintenance and investments to prevent a disaster. Axiom’s experience in mechanical and materials engineering enables it to investigate a variety of equipment and process failures. It offers on-site inspection and assessment services in addition to analytical services in its

Axiom’s purpose-built laboratory

BTE’s recently designed geodesic dome roof

purpose-built laboratories. Visit Axiom Engineering Associates at stand 4. Baillie Tank Equipment (BTE) manufactures a variety of tank equipment including geodesic dome roofs, pontoon and full

contact internal floating roofs, floating suction lines and skimmers, tank seals and floating roof drain systems. BTE has recently developed its geodesic dome roof and full contact honeycomb panel internal floating roof (IRF). IRFs can be leg supported or suspended from geodesic dome or steel fixed roofs. The company also designs and manufactures floating suction lines and skinners. BTE has supplied a number of large diameter suction lines with sample lines for international airport refuelling facilities, and recently shipped a large suction line to Saudi Arabia consisting of 2 x 16”, 8 x 26” and 1 x 36” diameter suction lines together with seals and drain systems. Its sales and design team is located in Sydney, Australia, with a manufacturing facility in Korea which enables it to frequently ship orders to all parts of the world. BTE says

it has supplied multiple repeat orders of its tank equipment to major oil companies in over 80 countries. BTE products are now distributed in the UK by Assentech, a supplier to the tank storage industry. Visit Baillie Tank Equipment at stand 9. Dantec manufactures a comprehensive range of composite hoses including its fire safe and PA hoses for liquefied gases. Dantec was one of the first composite hose manufacturers to introduce a portfolio of composite hoses for use with biofuels, particularly biodiesel, having recognised first hand that hoses manufactured using traditional materials are not suitable. Its other products include dry-break couplings and electrical insulating flanges. The company provides hose inspection, repair and certification services (HIRCS), which is a hose management 117


TSA preview

TA N K S T O R A G E • September 2012 liquid storage market thanks to its ‘everything under one roof’ concept. The company’s portfolio includes geodesic domes, internal floating roofs, tank seals, roof drains, guide pole sleeves, vapour control products and arrestors. Visit HMT Rubbaglas at stand 24 to find out more.

Dantec’s range of composite hoses includes fire safe and PA products

system that ensures testing and inspection requirements are not overlooked. It independently monitors and manages a database on the operator’s behalf, and reminds the operator when the hoses are due for inspection and retest, thus allowing them to concentrate on their core business. Visit Dantec at stand 15. FMA Systems provides terminal automation solutions and products to the petrochemical industry, including frontend engineering design, equipment supply, installation of hardware such as tank level gauges and loading gantry skids, commissioning and training, on-going support and maintenance. FMA Systems accommodates for both largeand small-scale customers, offering a range of solutions for a variety of terminals, from three loading positions to large facilities with over 1,000 loads per day. The company says its terminal automation system provides personnel and product access control and security, movement and storage of products including road and industrial bitumen, and ethanol blending together with various other chemicals and petroleum products. Comprehensive stock control allows deliveries to be balanced against receipts and tank holdings and provides product reconciliation reports and ERP interfaces. Depending on customer requirements FMA Systems can configure taOpen or 118

DepotVisor to provide any or all of the below functions, locally and remotely: • Vehicle and pedestrian access controls • Supervision of vehicle loading and unloading • Stock management • Tank level and temperature gauging • Tank farm control and monitoring • Additive and blending control • Vehicle bunkering • Order processing and invoicing • Management reporting • Internet-ready communications to other supervisory systems • Two and threedimensional graphics. Instrumentation available includes: • Top and bottom loading skids • Bioethanol and denaturant blending skids • Coriolis, turbine and positive displacement meters • Analogue blending and injection • Vehicle earthing and overspill monitors • Loading and vapour arms and hoses • Electronic preset and flow controllers • Radar and magnetostrictive tank level gauging • Tank level safety monitoring. Visit FMA systems at stand 17. HMT Rubbaglas says it is able to provide a complete suite of tank products to all types of end users and contractors in the bulk

IFC Inflow is a supplier of tanker loading equipment and tanker safe access systems. The company provides a range of equipment including petroleum and chemical loading arms, road tanker loading skids, loading platforms and gantries, self-levelling folding stairs, mobile safe tanker access equipment and high speed bulk loading systems. The company’s products and services are utilised across a number of industries including petroleum terminal and oil distribution, chemical, rail, marine, road transport and pharmaceutical. IFC’s 44 series petroleum bottom loading arms are designed for heavy duty use at petroleum loading facilities such as terminals and distribution depots, providing high performance at a low cost. The company’s petroleum loading skids can be used in terminal applications where flexibility and speed

are key. These tested skids offer flow rates up to 2,500l/ min, accurate metering, and up to six product arms per system. They are fully compliant with EExd ATEX regulations and come with optional blending and additive injective control systems. IFC also provides for safe tanker access with its gantries and platforms that are designed to comply with the latest regulations, while its folding stairs are designed to provide safe access to any height of tanker. Visit IFC Inflow at stand 8 to learn more about its product portfolio. A key part to safe and effective bulk liquid storage is the inspection of the storage tanks to establish tank integrity. Innospection provides tank floor inspection services using the SLOFEC (Saturation Low Frequency Eddy Current) technique. SLOFEC is becoming an increasingly recommended method for corrosion screening in the industry after it was found to fully satisfy the industry’s demands. The SLOFEC tank floor scan includes the inspection of high wall thickness and carbon steel and stainless steel material plants, inspection through all types of coatings, inspection of all

Bottom loading arms from IFC Inflow


TSA preview

September 2012 • TA N K S T O R A G E

Innospection offers tank floor scanning with the SLOFEC method

annular plates and inspection very close to the shell. It also includes differentiation and separate reporting for topside and underside corrosion,

distinguishes corrosion from inclusion or lamination, and provides for fast inspection with minimal prior surface preparation and cleaning. A colour mapping report is

available on-site directly after the inspection. The SLOFEC tank floor scan is very sensitive in the detection of localised corrosion, general corrosion and pitting in the general plates and, to some extent, in the welds. Capable of inspecting floors with thickness of up to 30mm, it is also able to inspect through all types of coating with thickness up to 10mm. A fast inspection technique, the scanning is carried out at an approximate speed of up to 20m/min, resulting in an average 300-450m2 of inspected area per shift. The inspection accuracy is +/- 10% with typical sensitivity on internal and external defects from 10% to 20% wall loss, dependant on WT from Ø 3mm to 5mm. Visit Innospection at stand 20. Enviroline Low Temperature Cure linings from International Paint allows

customers to control their tank lining schedule through a year-round application, compared to the minimum steel and air temperature of 10°C for most tank linings. International Paint’s Enviroline linings cure down to -7°C, return to immersion service in three days at 0°C, require a single coat application, and are resistant to most hydrocarbons including petrol, diesel, crude oil and biofuels. The Low Temperature Cure linings add another dimension to the Enviroline range, which allow linings to be applied throughout spring and autumn, plus right the way through most winters when the conventional lining application season is during the summer months. Enviroline Low Temperature Cure linings are suitable for protecting the internals of storage tanks, providing longterm corrosion resistance. Enviroline 376F-60LT conforms to API 652/653 as

SILVERWING

NDT solutions for Storage Tanks, Vessels and Pipe Work MFL tank floor & pipe scanners UT corrosion mapping systems UT tank shell crawlers Vacuum boxes Specialist inspection services Please visit us at the TSA Exhibition Booth No. 12

www.silverwingndt.com 119


TSA preview

TA N K S T O R A G E • September 2012

International Paint’s Enviroline linings are resistant to most hydrocarbons

Knowsley SK’s fire fighting equipment is suitable for the oil & gas and petrochemical industries

a thick film, reinforced lining and according to the API standard inspection intervals may be set to 20 years. The linings can also be used for the internals of process vessels and pipes and the externals of buried tanks, process equipment and pipes. Enviroline 376F-LT series products have a maximum continuous immersion temperature resistance of 70°C. The polycyclamine curative in the linings give excellent adhesion which provides compatibility with cathodic protection systems and good abrasion resistance which extends the service life in conditions where erosion may be a concern. The products require application through heated plural airless spray equipment – International Paint can provide equipment recommendations and application training where required. Visit International Paint at stand 16.

The group also constructs land and marine pipelines and offers process and energy engineering and the hire of specialist equipment. Engineering is a key part of Land & Marine’s business which, according to the company, allows it to offer a complete storage tank design service to supplement the extensive tank construction and refurbishment capability. Land & Marine can also handle a range of storage tank-related projects, including fixed and

Knowsley SK is dedicated to the design and supply of specialist fire fighting equipment and systems for the high risk oil, gas and petrochemicals industries. The company’s products and systems can be used both onshore and offshore, and in all climatic extremes around the world. In the tank storage industry, Knowsley SK offers a wide range of tank protection schemes covering both fixed roof and floating 120

roof tanks. Its systems are designed in accordance with internationally recognised codes, including NFPA 11, IP19 and BS 5306, and also with reference to specific end-user design standards. Fixed roof systems incorporate either top pouring devices or sub surface (base injection) systems. Floating roof tanks will have peripheral foam pourers protecting the rim seal areas and may also include the latest generation of gaseous extinguishing systems. In all cases the provision of cooling water, either by fixed spray rings or by large capacity monitors, may also be considered. Knowsley SK also designs, manufactures and supplies remote control monitors and systems for a turnkey design package. Typically, remote control monitors protect marine loading terminals, tank farms and hazardous process plan areas while also being used to mitigate gas cloud release. The company also provides monitor towers, CCTV systems, control valves, foam proportioning packages, water spray systems, manual monitors, hydrants and associated valves. Visit Knowsley SK at stand 2. Land & Marine Project Engineering is experienced in the design, repair, maintenance and construction of storage tanks and associated accessories.

floating roof configurations utilising the latest BSEN and API design codes. Storage tank construction and refurbishment capabilities are supplemented with civil engineering, pipework, fabrication and mechanical installation expertise that provide a bulk storage requirement ‘one stop shop’. In addition to its construction capabilities, Land & Marine TankServ manufactures floating roof tank seal equipment

Land & Marine Project Engineering is experienced in tank storage construction, among other things


TSA preview

September 2012 • TA N K S T O R A G E and associated products. TankServ serves the UK and overseas markets with conventional and lightweight mechanical primary seals, compression plate and wiper type secondary seals and double compression plate seals. Flexible roof drains, floating suction units and a range of other vapour saving devices, including guidepole sleeves, leg socks and different tank valves, are also available from TankServ. Thanks to its relationship with Ultraflote, Land & Marine is able to offer a supply and installation service for aluminium, stainless steel and hybrid internal floating covers and geodesic domes. Visit Land & Marine Project Engineering at stand 29. MHT Technology was approached by UM Storage at Gladstone Dock Liverpool, UK to provide a proposal for a complete turnkey solution for tank gauging, inventory management and overfill protection for 21 existing tanks. Following a detailed site survey, MHT put forward a proposal in a competitive bid process and won the order together with an addition to supply and install all cabling requirements for the project. The company then assembled a team to deliver the system within a tight deadline for completion and handover. Each tank was fitted with a radar level gauge, temperature sensor and independent high level alarm through existing process connections. All instruments/ sensors were cabled back to two panels: a tank gauging panel for the level and temperature instruments, and a separate annunciator panel for the IHLA system. The tank gauging panel provided a communication link to MHT’s Tank and Terminal Management software, providing the operator with a visualisation system for remote monitoring of the plant. UM’s head of engineering, Francis Drew, commented that ‘MHT did a great job delivering a fit for purpose system in good time despite the horrendous wet weather they endured throughout July. We expect the system to pay dividends going forward,

providing us with real-time inventories and significantly improved process safety’. Visit MHT Technology at stand 19. Mistras Group offers tank and local pipeline inspection and NDT solutions. Mistras’ Total Tank Care programme is a turnkey solution designed to help tank owners comply with ever increasing stringent requirements and regulations. Its approach blends the regulatory compliance to current codes and standards with a risk-based inspection system and advanced NDT methods. Mistras Group currently provides the following solutions under this programme: • PCMS tank asset inspection database and data analysis • Asset and inspection data inventory services • Tank specific RBI system fit to size of operation • API Standard 653 and/or EEMUA • Tankpac technology, acoustic emission tank floor condition testing • Talrut tank annular ring long range ultrasonic inspection • UT crawlers and cameras for hard to reach areas • Ex-proof, intrinsically safe (ATEX) UT thickness testing of, for instance, local pipeline systems or in-service storage tanks • MFL or LFET or UT LSI plate scanning for corrosion detection and quantification • Local government contacts, guidance with local legislation • Damage and incident assistance • Corrosion analysis/ criticality assessment • Engineering analysis and recommendations, repair plans. Visit Mistras Group at stand 22. Motherwell Tank Gauging (MTG) offers tank gauging and overfill protection products to tank storage facilities and refineries. The company operates from its the Motherwell production facility on Merseyside in the UK. It manufactures a range of products and provides services to the oil industry, including full

turnkey project management. MTG was approached by a client to provide radar tank gauging with accuracy of 1mm for semi buried tanks. A tank survey carried out by MTG engineers revealed the tanks had internal obstructions that would affect radar signals. The normal solution would be to install a 6 or 8” stillwell, an expensive option which would require the tanks to be emptied and gas released. Therefore MTG’s engineers suggested supplying and installing a 2” stillwell – a low-cost option that could be installed while the tank stays in service, without the need to empty them. MTG Fig 8900d radar gauges were supplied and installed on the 2” stillwells. After extensive monitoring at different levels in the tanks, the client has signed off the gauges as being accurate to 1mm throughout the full range of 12m. The tanks are now part of a complete level and temperature monitoring system operating on the site, which supplies major UK airports with Jet A1 fuel. Visit Motherwell Tank Gauging at stand 1. At TSA this year Reynolds Training Services (RTS) says it will be talking to attendees about the ‘rigours of industrial health and safety’ and demonstrating its consultancy services and range of petroleum/petrochemical training courses. RTS will be discussing a number of its services at the show, including: • Vocational competency courses from PAAVQSET for bulk liquid, control room and jetty operations • The NEBOSH International Technical Certificate in Oil and Gas Safety • NSAPI validated courses indulging process safety, permit to work, co-fined space and emergency response • General health and safety including working safely, manual handling and risk assessment. Earlier this year RTS formed a partnership with Humberside Offshore Training Association for the delivery of the NEBOSH ITC in oil

and gas safety, while its long-term relationship with Simon Storage has seen the delivery of training material relevant to the operational principles on all of their sites. Additionally, RTS has implemented more industrial health and safety courses into its existing portfolio, along with an expansion of bespoke course development and consultancy services. Visit Reynolds Training Services at stand 10. Environmental solutions provider Veolia Environmental Services provides industrial tank cleaning and decommissioning services designed to improve productivity in the refining and bulk liquid storage sector. It employs non-man entry systems to clean fixed and floating roof bulk liquid and crude oil storage tanks. Veolia says its remote control tank cleaning technology is ideal for cleaning white oils or bulk product storage tanks. Central to the automated sealed cleaning system process is a remote controlled cannon equipped with a video camera and lightning system. The system is attached to an airtight manway door and is controlled by a technician from the control room. The closed cleaning system of the Manway Cannon minimises product vapour release to atmosphere and reduces the overall cleaning duration. Veolia’s Crude Oil Washing System (COWS) is a fully automated non-entry cleaning and oil recovery system for cleaning large crude oil storage tanks. The COWS technology achieves high hydrocarbon recovery rates, reduces tank outage times, lowers costs and simplifies logistics. Environmental benefits are gained due to the closed system technology and minimal atmospheric emissions relating solely to the need to vent the tank. Veolia also works with a wide range of industrial customers for the removal of all types of aboveground and below ground tank storage facilities Visit Veolia Environmental Services at stand 28. n 121


EVENT REVIEW PAGE HEADER

TA ST TO OR RA AG GE E •• September TA N NK K S September 2012 2012

A selection of shots from TankBank’s 4th Annual European Conference in June, held aboard the SS Rotterdam on the Rover Maas

r e v i r e h t y b g n i t e A me Takeaway facts: • The total global captive and independent tank storage capacity together is estimated to be around 2,000- 2,500Mm³ • The total independent tank storage capacity is approximately 400 - 500Mm³ • The ARA region now has 60 terminals with a capacity of 22,950,000m³ • In Singapore there are 31 terminals with 16,119,000m³ • In Houston there are 26 sea terminals with 18,257,000m³ • In Beaumont there are 19 sea terminals with 12,13,000m³ • In China there are 324 terminals with 175,555,000m³ • In Europe there are 910 terminals with 186,500,000m³ Source: Rob Luijendijk, managing director of TankTerminals.com

122


September 2012 • TA N K S T O R A G E

PAGE HEADER

119


UPCOMING EVENTS

TA N K S T O R A G E â&#x20AC;˘ September 2012

DATE EVENT

LOCATION

SEPTEMBER 20

Tank Storage Association Conference & Exhibition

Coventry, UK

26 - 29

Shanghai 7th International Oil & Gas Transportation & Storage Technology Equipment Exhibition

Shanghai, China

27 - 29

expo Petro Trans

Messe Kassel, Germany

6 - 10

EPCA Annual Meeting

Budapest, Hungary

7 - 9

Marcus Evans Tank and Terminal Management

Abu Dhabi, UAE

14 - 17

Petrotech 2012

New Delhi, India

16 - 17

Tank Storage Canada

Calgary, Alberta, Canada

17

3rd Annual Missouri Storage Tank Conference (NISTM)

Missouri, US

6 - 7

8th International Conference on Flat Bottom Tanks

Munich, Germany

22 - 23

Innovative technologies and equipment for tank farms and oil terminals

St.Petersburg, Russia

11 - 12

Tank Storage Asia

Singapore

OctOBER

NOVEMBER

Tank Storage magazine

ADVERT INDEX Company Page

(ISSN 1750-841X) is published five

Company Page

Company Page

Solventas 27

Fort Vale

Baillie Tank

29

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AGAS 68

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Vincotte 31

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Bakken Crude Oil Logistics

Flexim 4

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Mettler Toledo

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CB&I 70

Atreus 5

CarboVac 33

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Zerust Oil & Gas

75

Mesa 6

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Omniflex

77

Bornemann Pumps

7

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HMT 80

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ARKOIL Technologies

8

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Rosen 37

Adisa 85

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Lightning Master

9

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G.A.S mbH

38

Intertek 87

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IMHOF 10

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Antea Group

39

Hayward Baker

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Oreco 11

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Flowserve 40

STCM 94

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Omni Valve

98

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RS Seliger

12

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Menard 42

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Angus Fire

100

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Franklin Valve

13

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Nordic Storage

45

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Motherwell Bridge

105

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L&J Technologies

15

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SPC 46

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Ragworm 107

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Cashco 17

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Envent 48

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Tank and Terminal Management 112

Progressive Technical Services 49

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Flotech P.S

113

Subscription records are maintained at

g

Oil Terminal 2012

114

Cresco Marketing

115

Horseshoe Media Ltd, Marshall House,

g g

Silverwing 119

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Clark Creative

Front Cover

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L&J Technologies

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Nustar

Inside Front Cover

g

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Foam Fatale

3

g g g g

32

TODO 34 PDE 35

Vacono 18

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SGB 19

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PFT Alexander

20

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Magnetrol 53

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Motherwell Tank Gauging

21

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Tank Storage Asia

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Mistras 22

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CST Covers

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Saval 24

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Protego 62

g

MHT Technology

g

Implico 65

g g

124

25

Chromalox 51 56 60&61

66

times a year (in January, March,

g

g

69

91

123

Tank Storage Canada Inside Back Cover

May, September and November) by Horseshoe Media Ltd, Marshall House, 124 Middleton Road, Morden, Surrey, SM4 6RW, United Kingdom.

The 2012 US Institutional subscription price is $240. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434. Periodical postage pending at Jamaica NY 11431.

124 Middleton Road, Morden, Surrey, SM4 6RW, United Kingdom.

g

g

Oil Tanking

Outside Back Cover

Air Business Ltd is acting as our mailing agent.


PAGE HEADER

September 2012 • TA N K S T O R A G E

Tank STorage

TELUS CONVENTION CENTRE, CALGARY

16 - 17 OCTOBER 2012

CAN

ADA

FASTTRACK YOUR WAY TO BUSINESS SUCCESS! REGISTRATION NOW OPEN!

The technologies and services on display at the FREE EXHIBITION will include everything from tank design, construction and maintenance, through to innovations in metering & measuring, pumps & valves, automation & loading equipment and of course inspection & certification services - plus lots more making it your fasttrack to success.

Register for the FREE exhibition today and avoid the queues at

www.tankstoragecanada.com PACKED TWO DAY CONFERENCE PROGRAMME

Exclusive speaker line up of over 20 of the industry’s leading experts, including: Official Publication

Media Partners

Steven Paget

Stephen Schork

Juan Carlos Morera

Phil Myers

Analyst, First Energy Capital

Founder The Schork Report

Terminals Engineering & Tank Specialist TransCanada Pipelines

Founder Penny Consulting

CONFERENCE HIGHLIGHTS DAY ONE: 16 OCTOBER 2012

DAY TWO: 17 OCTOBER 2012

• Navigating the forward-curve

• API 2350: Just out – the latest on spill prevention measures • Ensuring safety leadership at the terminal from a US terminal operator’s point of view • Evaluating near-miss incidents and minimising the possibility of major incidents

• Update on Keystone Hardisty’s tank terminal and pipeline expansions • The impact of the changes to the refinery sector

Follow us on Twitter #TSCanada12 @StocExpo

Join the StocExpo and Tank Storage Events group on LinkedIn

Like our StocExpo and Tank Storage Events Facebook page

To book your place at the

Tank Storage Canada Conference

and find out more about the discounts available visit www.tankstoragecanada.com or phone: +44 (0)20 8843 8808

xxx


PAGE HEADER

TA N K S T O R A G E • September 2012

Rachel Caruana Logistics Manager, Oiltanking Malta

We Can, We Care Oiltanking Malta ́ s central location in the Mediterrane-

continuous coordination with her customers, ship agents

an, close to the international shipping lanes, allows for

and local authorities. Since starting 20 years ago, as

efficient distribution to the Mediterranean countries and

Oiltanking Malta’s first employee, Rachel has been ensu-

for leverage on arbitrage opportunities going east and

ring this excellent service. She continues to do so with

west. Rachel Caruana strives to efficiently schedule the

the same positive attitude as on her first day – simply

average 850 vessels that call on her berths each year by

because she cares.

Your reliable storage partner for liquid bulk. Admiralitaetstrasse 55 | D-20459 Hamburg Germany Tel. +49-40-370990 0 | Fax +49-40-37099 499 | www.oiltanking.com

xxx

Tank Storage magazine September issue  

The latest issue of the industry's leading aboveground tank storage publication - entirely dedicated to oil and petrochemical tank terminals

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