TSM August/September full by Tank Storage Magazine

AUGUST/SEPTEMBER 17 Volume 13 Issue No.4

THE GATEWAY FOR NORTH EAST ASIA TRADE Jeongil Stolthaven Ulsan is embarking on more growth as demand for petrol storage grows

RIDING THE ELECTRIC HIGHWAY What impact could the rise of electric vehicles have on oil markets & tank terminals?

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The voice of the storage terminal industry

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CONTENTS

INCLUDES CHEMICAL STORAGE SUPPLEMENT

Contents

News TERMINAL NEWS 09

The Americas

13 Asia 14

Africa & Middle East

16 Europe 19 Global 20

Incident report

Storage in Asia 22

Tank terminal update: Asia

24 Johor: Malaysiaâ&#x20AC;&#x2122;s most promising oil cluster

The gateway for North East Asia trade

Creating a storage first for South Korea

36 Going underground in Singapore 38

Oil slump means boom time for Asian terminals

Market analysis

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

Riding the electric highway

A visible sign of success

CONTENTS

Contents Technical features 53

Technical news

63 Improving tank longevity with inspections 67

A wireless approach to tank level monitoring

The evolution of domes

Tank emissions: finding the true vapour pressure of heavy petroleum stocks

A new tank inspection tradition

Maintenance free remote fill solution

Speaker interviews 83

Insights from a selection of Tank Storage Asia’s industry experts

Events 89

Accelerating into the future A preview of some of the exhibitors at this year’s Tank Storage Asia exhibition at the Marina Bay Sands in Singapore.

103 Conversations in Cartagena

105 02

105 Storage on the Pearl of the Adriatic 108 Advertisers’ index 109 Upcoming events AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CONTENTS

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CONTRIBUTORS

Contributors

AUGUST/SEPTEMBER 17 Volume 13 Issue No.4

THE GATEWAY FOR NORTH EAST ASIA TRADE Jeongil Stolthaven Ulsan is embarking on more growth as demand for petrol storage grows

RIDING THE ELECTRIC HIGHWAY What impact could the rise of electric vehicles have on oil markets & tank terminals?

AUGUST/SEPTEMBER 17 Volume 13 Issue No.4

Rotary Logo (Master Brand)

Pantone 655C

Pantone 109C

Pantone 363C

Pantone 390C

REGIONAL FOCUS: ASIA Pantone 2945C

Pantone 130C

Pantone 109C

Pantone 130C

Pantone 2945C

Pantone 655C

Pantone 390C

Pantone 363C

The voice of the storage terminal industry

Front cover courtesy of Rotary Engineering

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

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Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2017 US Institutional subscription prices is $243. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434. Periodical postage pending at Jamaica NY 11431. Subscription records are maintained at Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.

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CONTRIBUTORS

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COMMENT

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COMMENT

A difficult job

ebalancing global oil markets was never going to be an easy job. The new production target of 35.5 million barrels per day at the beginning of 2017 – a reduction of 700,000 barrels per day – followed two difficult years for oil markets when prices tumbled in 2015. However, this job has just become even more difficult. Around 230 million barrels of extra oil more difficult. The International Energy Agency has discovered that this amount of previously unaccounted for oil is still lingering in storage. How has this happened? Through the discovery of changes in historical data that suggest demand in some developing countries was overstated. To put this into some perspective, Bloomberg’s Julian Lee says this amount of oil increases the build-up in inventories since the beginning of 2014 by almost 25% and it draws out the rebalancing process by another six months. And the March 2018 extension of the production cap has proved to be particularly painful for some countries. As such, compliance is slipping. In July, the compliance rate was 75% and OPEC’s production rose to its highest level in 2017. However, demand for oil is growing yearon-year more strongly than first thought and there is talk that some OPEC countries are preparing for even deeper cuts. So, let’s watch this space, particularly in the run up to the next full ministerial meeting. Aside from this, talk has turned to the rising phenomenon of the electric vehicle – particularly as the likes of France, the UK, India and China have announced initiatives to either cut the amount of petrol and diesel cars and/or increase the quota of electric vehicles. Oil majors are also giving electric vehicles the nod in their future business strategies. Shell, for example, has forecast a ‘lower forever’ oil price as petroleum demand eventually declines as a result of initiatives to phase out combustion

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

engines in favour of EVs. But it is not all doom and gloom for oil markets, or the tank storage sector. In this issue, we examine the EV initiatives at play and how there remains a baseload demand for oil in other sectors. In this issue, we also take a closer look at the Asian storage market and how an insatiable appetite for oil is fuelling demand for storage as the region absorbs excess crude supply. South Korea’s Ulsan region is a particular hot spot for storage at the moment. Jeongil Stolthaven Ulsan, the largest bulk liquid storage facility in the Ulsan/Onsan industry complex, talks to us about its growth plans to handle greater demand for petrol and petrol product storage. Ulsan Port Authority executives reveal more about its plans for the North East Asian oil hub project, which will make the port the third largest storage hub for oil products and chemicals in the world once complete. We also find out more about Benalec’s Tanjung Piai Maritime Industrial Park, which is capitalising on the fact that Johor is expected to become one of Malaysia’s major oil clusters. This edition of Tank Storage Magazine will be at no less than eight global events. In addition to being the official media partner for Tank Storage Asia in Singapore, this magazine will be distributed at Tank Storage Association in Coventry, UK, the NISTM in Galveston, Texas, Asia Downstream Week, in Singapore, EPCA in Berlin, Argus Africa Storage & Logistics in Cape Town, Bulk Liquid Storage Europe in Croatia and API in Seattle, US! We look forward to catching up with you at one of these events. We hope you enjoy this edition.

With best wishes, Jasmin 07

TERMINAL NEWS

All the latest terminal storage news from around the globe

13 China will allow private companies to invest in storage

14 OTTCO signs agreement for Oman crude storage terminal

10 USD Partners acquire crude storage terminal

the americas

Africa & middle east

09 Vopak and AltaGas JV over propane export terminal

14 OTTCO signs agreement for Oman crude storage terminal

New liquid bulk storage terminal planned for South Africa

Agreement signed for Bioko Oil Terminal

Tank storage project boosts TransMontaigne financials

10 USD Partners acquires Oklahoma crude storage terminal

Vopak reaches agreement over emissions control at Texas terminal

15 Oiltanking buys additional stake in Iran chemical terminal

Tallgrass to develop crude storage terminal

11 Houston Fuel Oil Terminal Company bought by SemGroup

Worker killed following storage tank fire

Enterprise & Navigator to develop ethylene storage terminal

Howard Midstream to develop crude & natural gas infrastructure

VTTI acquires stake in Pakistan storage terminal project

EUROPE 16 Alkion completes acquisition of LBC assets 18 Investment company to acquire stake in LBC Tank Terminals

Asia

13 China will allow private companies to invest in storage

Global

Vietnam to expand oil storage by 2025

Oiltankingâ&#x20AC;&#x2122;s Indonesia terminal approved in Platts pricing

Last storage tank completed for Botlek expansion

19 Crude oil inventories to increase mid-2018

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

CONNECT WITH US 08

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l THE AMERICAS

TERMINAL NEWS THE AMERICAS

Vopak and AltaGas JV over propane export terminal AltaGas and Vopak will jointly invest in the development of the Ridley Island propane export terminal.

he facility will be the first propane export facility off the west coast of Canada and it is designed to ship 1.2 million tonnes of propane per annum, with 96,000 m3 of storage capacity. It is expected to be commissioned in the first quarter of 2019. Vopak will take a 30% interest in the facility. Its investment in the terminal is underpinned by long-term customer contracts and fulfils its strategy of focusing on the storage and handling of gas. Canada has a structural surplus in gas and natural gas liquids for which Asia is an important market to export these energy products. The facility site is near Prince Rupert, British Columbia and it has a strategic locational advantage given very short shipping distances to market in Asia of 10 days compared to 25

days from the US Gulf Coast. Propane from British Columbia and Alberta will be transported to the facility using 50 to 60 rail cars a day through the existing CN rail network. Eelco Hoekstra, chairman of the executive board and CEO of Vopak, says: ‘We are very much looking forward to working together with AltaGas in this new partnership. Storage and handling of gas is an important strategic focus area for Vopak. We are confident that we have found a strong partner in AltaGas that is a well-respected Canadian company with experience in developing energy projects.’ Separately from the facility, Vopak also has additional land rights on Ridley Island. Both Vopak and AltaGas will explore the potential to expand their relationship on Ridley Island.

Tank storage project boosts TransMontaigne financials An expansion project at TransMontaigne’s Collins bulk storage terminal, along with the company’s base business, has supported an increase in its first quarter financials. Revenue for the first quarter of 2017 was $44.9 million, an increase of 10.6% compared to the same period in 2016. Consolidated EBITDA for the first quarter of 2017 was $27.3 million, a 13.3% increase compared to 2016 results. The company says the improvement can be primarily attributed to port of its Collins Phase I terminal expansion coming online and re-contracting of storage capacity throughout the past year, including a portion at higher rates and greater utilisation. In December 2016, the company placed 900,000 barrels of the two million barrels of new tank capacity into service at the facility in Mississippi. In February and May 2017 it placed an additional 300,000 barrels and another 300,000 barrels respectively into service. Completion of the remaining capacity will occur in various stages through the second quarter of 2017. The facility is the only independent terminal capable of receiving from, delivering to, and transferring refined petroleum products between the Colonial and Plantation pipeline systems. The company says it is in the process of permitting an addition five million barrels of capacity for further construction at its Collins terminal and is in active discussion with several prospective customers regarding this.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

‘We are very much looking forward to working together with AltaGas in this new partnership. Storage and handling of gas is an important strategic focus area for Vopak. We are confident that we have found a strong partner in AltaGas that is a well-respected Canadian company with experience in developing energy projects.’

New Pipe Support Barrier Reduces Corrosion and Installation Costs Lift-Off Pipe Supports, a Lake Charles, Louisiana Company, has recently successfully designed, manufactured and installed their new “LOR” range of pipe supports with excellent results (according to the installers and pipeline company owners). Lake Charles, LA, July 14, 2017 – ( PR.com ) – Lift-Off Pipe Supports has recently designed, manufactured and supplied their 6” and 8” LOR (Lift Off Rest) range of pipe supports to a well know pipeline operating company with excellent results. The client is very impressed with the support as they do not fall off or get displaced during line expansion or contraction and very fast to install (about 15 minutes). An additional advantage is that the support cannot slide off the beam by using our patented design method. No drilling or any mechanical fixing method is required, besides lifting the pipe off the beam. No hot work is needed. The LOR is unique in the sense that it has a very high conductivity resistance, to ensure that the pipelines and associated equipment is adequately grounded. A major cause of cathodic protection failures. Lift-Off Pipe Supports supplied 6” and 8” LOR’s to suit 12,” 16,” 20” and 24” piping. The advantage of the LOR is that the support barrier, or width only needs to be approximately half of the pipe diameter and addresses the contact point between the support beam and the pipe. Lift-Off Pipe Supports supplys the LOR to suit structural sections from 1” to 16” wide flange widths to suite piping up to 48.”

+1 337-515-8590 Contact via Email www.liftoffpipe.com

TERMINAL NEWS l THE AMERICAS

USD Partners acquires Oklahoma crude storage terminal A crude oil terminal in Oklahoma has been bought by USD Partners to facilitate rail-to-pipeline shipments of crude oil.

he terminal in Stroud, which was bought for $25 million, will enable the shipment of crude from USD’s Hardisty terminal in western Canada to Cushing, Oklahoma. USD has extended the term of take-or-pay terminalling services agreements related to 25% of the Hardisty terminal’s available capacity by one year. Along with this transaction, USD has entered into a new multi-year, take-or-pay terminalling services agreement with an investment grade rates, multi-national energy customer for the use of 50% of the Stroud’s terminal’s available capacity. Dan Borgen, CEO, says: ‘We are proud to announce the successful repositioning of an underutilised asset to create a competitive network solution for our new customer’s growing oil sands production. ‘Our Hardisty to Stroud rail solution delivers immediate takeaway capacity, preserves the integrity of our customer’s heavy barrels and enables substantial end market optionality at Cushing with available pipeline capacity to the Gulf Coast.’ The Stroud terminal is located on 76 acres and includes 104 railcar spots, which can unload one unit train per day, two 70,000 barrel onsite storage tanks and one truck bay. The terminal also includes a 12-inch diameter, 17-mile pipeline directly connected to the Cushing hub. USD also obtained a lease for 300,000 barrels of crude oil tank storage at the Cushing hub to receive outbound shipments of crude oil from the Stroud terminal. Jim Albertson, vice president, commercial development – Canada, adds: ‘This transaction reinforces the strategic positioning of our Hardisty asset and confirms our long-held view that rail will continue as an important component of midstream transportation infrastructure in western Canada.

‘This transaction reinforces the strategic positioning of our Hardisty asset and confirms our long-held view that rail will continue as an important component of midstream transportation infrastructure in western Canada’

Vopak reaches agreement over emissions control at Texas terminal A number of improvements are being made at Vopak Terminal Deer Park following an agreement with several federal agencies over its emissions. The facility is investing $5 million in capital upgrades after it reached an agreement with the US Environmental Protection Agency, the US Department of Justice, the Texas Commission on Environmental Quality and the Texas Attorney General. The agreement (consent decree) is not an admission of liability but represents an agreement between the terminal and the government on a range of new controls and processes. The upgrades include enhanced operations procedures and improved tank covers as well as investment in advanced technologies such as the usage of forward looking infrared optical gas imaging cameras. David Carter, Deer Park terminal manager, says: ‘Vopak is committed to being a leader and responsible company in the communities where we operate and we are happy to cooperate with all governmental agencies to ensure that our facilities meet the highest regulatory standards. ‘We are also committed to continuous improvement and look for ways each day to innovate in our operations and the way we do business.’

Tallgrass to develop crude storage terminal Tallgrass Energy Partners plans to develop a crude oil storage terminal following an agreement with Saddle Butte Pipeline. The facility will be situated in the heart of the Platteville, Colorado oil terminal complex and will interconnect with Saddle Butte’s Denver-Julesburg Basin crude oil gathering system. It is expected that the terminal will serve as a new pipeline origin for the Pony Express Platteville Extension. The extension is expected to have an ultimate takeaway capacity of at least 80,000 barrels of crude oil per day and is expected to be in service by the second quarter of 2018. Tallgrass Terminals will wholly own and operate the new facility when it is completed. Consistent with the Pony Express Pipeline’s current operations, the Tallgrass Grasslands Terminal will offer batching service for several common streams sourced from multiple gathering system interconnects. Doug Johnson, vice president and general manager of Tallgrass Pony Express Pipeline, says: ‘The proposed Platteville Extension and Tallgrass Grasslands Terminal, together with our existing Buckingham Terminal and Northeast Colorado Lateral, give Pony Express and Tallgrass Terminals an unrivalled footprint in the Denver-Julesburg area and provide meaningful benefits to producers. ‘Via its direct connections to refineries and six final-destination terminals in Cushing, Pony Express provides customers a broad range of delivery options and improved netbacks versus other alternative transport options.’

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TERMINAL NEWS l THE AMERICAS

Houston Fuel Oil Terminal Company bought by SemGroup One of the largest oil terminals in the US has been acquired by SemGroup Corporation from investment funds managed by Alinda Capital Partners. The 16.8 million barrel terminal, on 330 acres of land, is located on the US Gulf Coast with pipeline connectivity to the local refining complex, deep water marine access and inbound pipeline, rail and truck receipt capabilities from all major producing basins. The facility is currently undergoing a series of growth projects, including a new ship dock, a new pipeline and connections as well as an additional 1.45 million barrels of crude oil storage. This is due to be completed by mid-2018. Carlin Conner, SemGroup president and CEO, says: ‘With the additional of [the terminal], SemGroup will be uniquely positioned to capture the future trends in exporting crude oil and refined products resulting from the near and long-term anticipated growth in US shale production.’ The acquisition is expected to close in the third quarter of 2017.

Worker killed following storage tank fire A fire at Anadarko Petroleum killed a maintenance worker and injured three others. The incident, involving an oil tank battery, happened on May 25 as crews performed maintenance on a collection of oil tanks at the facility near Mead, Colorado according to the Weld County Sheriff’s Office. When officers arrived on the scene the battery was fully engulfed in flames, which is being attributed as an industrial accident. Three people working on the battery were transported to medical centres, two being treated for burns. The Sheriff’s Office, Mountain View Fire and Anadarko worked to ensure all the individuals working on the site were accounted for and another person working on the battery was discovered and was declared dead at the scene. The identity of the worker will be released by the Weld County Coroner’s Office following their investigation.

Howard Midstream to develop crude & natural gas infrastructure Howard Midstream Energy Partners and WPX Energy will develop crude oil and natural gas gathering and processing infrastructure in the Delaware Basin. As part of the strategic partnership, Howard Midstream will complete construction of a 50 mile crude oil gathering system, build a new cryogenic natural gas processing complex with an initial capacity of 400 million cubic feet per day and build associated natural gas and product pipelines. The 50/50 joint venture is supported by an area of mutual interest of more than 600 square miles in Lea and Eddy Counties, New Mexico and Reeves and Loving Counties, Texas, with 50,000 net acres currently dedicated by WPX. Mike Howard, Howard Energy Partners’ chairman and CEO, says: ‘Historically, producer-backed midstream companies have performed well given the strong alignment of interests. We are excited about the strategic partnership with WPX, one of the strongest players in the Permian Basin, and the positive implications it has for our business.’

The Tank Tiger A clearing house for tank storage!

Enterprise & Navigator to develop ethylene storage terminal Enterprise Products Partners and Navigator Holdings plan to develop an ethylene marine export terminal on the Houston Ship Channel. Enterprise will manage the construction, operations and commercial activities of the terminal, which will be located at its Morgan’s Point complex. The export terminal will be connected to Enterprise’s high-capacity ethylene salt dome storage and ethylene pipeline system, which is currently under construction. The storage facility will have 600 million pounds of capacity. Its pipeline system will be connected to multiple producers and consumers of ethylene on the US Gulf Coast. In a statement, Enterprise says that the storage and pipeline system, along with the export terminal, will provide the petrochemical industry with logistical flexibility and an outlet to international markets. The petrochemical industry in the US is flourishing at the moment, and ethylene production capacity is expanding by 45% between 2016 and 2020.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

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TERMINAL NEWS l ASIA

Myanmar joint ventureWestorage terminal launched Can, We Care A joint venture petroleum products terminal between Puma Energy and Asia Sun Energy has been launched in Myanmar.

he $92 million investment in the Puma Energy Asia Sun terminal, located at Thilawa port, is first of its kind for the Myanmar petroleum industry, which has just opened up to foreign direct investment in this area. With 91,000 m3 of capacity, the terminal is the largest and most modern refined prod-

ucts import terminal in Myanmar. It caters for a range of petroleum products including commercial fuels, HFO, bitumen and jet fuel. The terminal is the first in the country to be built to API, ASME and NFPA international guidelines for construction, safety and environmental standards. David Holden, general manager of Puma

Energy Asia Sun, says: ‘Puma Energy Asia Sun has invested close to $100 million in this vital fuel infrastructure to support the long-term economic development of the country. The Thilawa terminal will support Myanmar’s increasing need for transport fuel and contribute towards the nation’s development.’

Puma reports sales growth despite some headwinds Puma Energy has reported a 3% in sales volumes despite headwinds in some regions. The company attributed its growth to good retail and aviation performance, however B2B was negatively affected by the slowdown of certain economies, particularly in Africa. Its gross profit and EBITDA decreased compared to a very strong first quarter of 2016. Its overall storage capacity increased to eight million m3 as aStores result of the forsucyou. cessful completion of Dinh Vu terminal in Vietnam and the integration of the terminal acquired from BP in Northern Ireland. Denis Chazarain, CFO, says: ‘I am pleased to report that, despite facing headwinds in certain regions, we have had a steady start to the year. ‘With the completion of several of our projects, capex was predominantly spent on storage construction and infrastructure projects, while a new terminal in Vietnam has increased storage capacity to eight million m3. ‘Puma Energy remains in good shape and, with strict credit discipline and a focus on working capital management, we will continue to leverage our positions in our key markets and I look forward to a successful remainder of the year.’

Dialog looks to develop more storage terminals Dialog is looking to secure new potential partners for its next phase of the Pengerang Deepwater Terminal project. The group, which generated RM913.6 million of revenue inScores its third quarter financial results, ending for you. March 31 2017, says that Phase 3 of the project will include the development of more petroleum and petrochemical storage terminals. It says that further development of the Pengerang Deepwater Terminal, which is currently undergoing construction of Phase 2, will provide more opportunities for its engineering, construction, fabrication and plant maintenance services. Additionally, the group is also developing an industrial estate with a land area of approximately 170 acres that would support the development of further downstream petroleum and petrochemical industries in Pengerang, Johor. It says in a statement: ‘Dialog remains confident that its business model is well structured and can withstand the current oil price volatility and currency movements. The group’s financial track record has proven that Dialog’s business is well risk-managed and sustainable. ‘Barring any unforeseen circumstances, the group is optimistic that it will continue to deliver a healthy performance for the financial year ending June 30 2017.’

‘Barring any unforeseen circumstances, the group is optimistic that it will continue to deliver a healthy performance for the financial year ending June 30 2017’

Your reliable storage partner for everything liquid. 12

www.oiltanking.com

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l ASIA

TERMINAL NEWS ASIA

China will allow private companies to invest in storage China’s government has said it will eventually allow private companies to invest in the country’s oil and gas storage.

ccording to Reuters, which quotes a blueprint document for its energy sector, the State Council said it would aim to increase government investment in the country’s oil storage facilities while also allowing non-state firms to operate storage. However the document did not provide further details. The country has ramped up construction of storage facilities primarily for its strategic reserves. Underground caverns have been built capable of holding a substantial amount of its SPR by 2020 as it looks for alternatives to expensive and exposed above ground tanks in crowded coastal regions. Reuters says that the government has previously said it would take steps such as pushing to open upstream oil and gas exploration to private companies, help split natural gas sales from gas pipeline operations and lift the output of higher quality oil products.

Oiltanking’s Indonesian terminal approved in Platts pricing Oiltanking’s Karimun terminal has been approved by S&P Global Platts to be in its Singapore pricing process for gasoil, jet fuel and petrol cargos. In a note to its subscribers, Platts says it will publish offers of oil product cargoes loading from the storage terminal in its pricing process. It will publish seller’s offers from Karimun on a free-on-board Indonesia basis, where the seller needs to state the loading point as FOB Karimun at the time of indicating their interest to Platts for publication. Reuters reports that this will be the first Indonesian delivery point in Platts’ Singapore price assessment process. Other loading points outside Singapore that Platts includes in its oil product assessments include Malaysia’s Tanjung Langsat, Tanjung Bin, Pengerang and some floating storage units. The company will not publish FOB Indonesia bids and sellers may not unilaterally nominate Karimun as a loading point for deals done under basis of FOB Straits, which includes the terminals located outside of Singapore.

Vietnam to expand oil storage by 2025 Vietnam is looking to build a strategic petroleum reserve and grow commercial storage for crude oil and oil products by 2025. In a document reviewed by Reuters, the country plans to spend more than $6 billion on the project and plans to build strategic petroleum reserves of up to 2.2 million m3 of crude oil by 2020. Reuters says that strategic oil product reserves by 2020 will total 1.8 million m3, equal to 14 days of fuel imports. The country’s prime minster approved a plan earlier in July to build crude and petroleum stocks of at least 90 days’ worth of net imports by 2020.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l AFRICA & MIDDLE EAST

TERMINAL NEWS AFRICA & MIDDLE EAST

OTTCO signs agreement for Oman crude storage terminal The Special Economic Zone Authority at Duqm and the Oman Tank Terminal Company (OTTCO) have signed an agreement over the construction of the Ras Markas crude oil storage terminal.

he usufruct agreement allocates 1,253 hectares of land in Duqm for the Ras Markaz terminal for a period of 40 years. It grants the company exclusive rights for the storage of crude oil and its derivative in the area for a period of 20 years and for five years in the Special Economic Zone Authority at Duqm. A five year development plan has been established to cover the construction of tanks, creation of floating platforms and piers for the import and export of crude oil, a pier for the tug boats under water pipelines to receive and export oil with lengths ranging from 5 km to 7 km. It also covers the creation of plant for pumping oil to the tanks. The first phase of the five phase project will comprise 26 million barrels of storage with marine facilities for importing and exporting crude oil. It is

expected to cost $1.7 billion during phase I. The second phase is expected to cost $700 million. A statement from OTTCO says that the terminal will be designed to allow for blending, loading and unloading ships at reasonable times. It is expected that the terminal will have an operational capacity of around 99%. In September 2015, the company achieved a world first with its floating storage facility, with a capacity of 2.1 million barrels. OTTCO was the first storage company in the world to providing floating storage linked to an energy futures contract. The facility, at Minal Al Fahal, serves customers of Oman Export Blend and China Oil. It was built as an interim storage solution for select customers ahead of the commissioning of the Ras Markaz Crude Oil Park.

New liquid bulk storage terminal planned for South Africa Oiltanking Grindrod Calulo Holdings has been appointed a contractor for a new liquid bulk storage terminal at the Port of Ngqura. Transnet National Ports Authority appointed the storage operator to plan, fund, construct, maintain and operate the new facility following the conclusion of the build, operate and transfer agreement in December 2016. Construction is due to start at the end of 2017 and it is expected to be complete and commissioned by the third quarter of 2019. The first phase of the facility will provide 150,000 m3 of storage capacity for refined petroleum products. It also involves the replacement of tanks currently in use in Port Elizabeth, which will be decommissioned and the land redeveloped. Additional phases of the project will involve an additional 550,000 m3 of storage capacity and handling. The new facility will serve oil majors, new entrants into the South African oil industry as well as international traders. This will represent Oiltanking’s first holding in a South African fuel terminal. For Grindrod, the Ngqura liquid storage facility provides diversification into fuel storage and handling and aligns with its coastal tanker shipping through Unicorn Tankers.

A five year development plan has been established to cover the construction of tanks, floating platforms and piers for the import & export of crude oil

Agreement signed for Bioko Oil Terminal The Government of Equatorial Guinea and Arabian Energy have signed an agreement on the development of a petroleum storage terminal in the country. It has been reported that the Bioko Oil Terminal could become the largest oil and petroleum storage facility in West Africa. The project, which is worth $500 million, will comprise 22 storage tanks with a total capacity of 1.2 million m3. It will be built in two phases, the first consisting of refined production and the second capable of storing, handling and blending middle distillates and light ends such as diesel, jet fuel, petrol and naphtha as well as crude oil. Arabian Energy says the terminal infrastructure will be operated on a ‘first come, first served’ basis. Dr Saud Al Anazi, chairman and owner of Arabian Energy, says: ‘By decreasing major imports of petroleum products, the Bioko Oil Terminal will promote efficiency in the midstream space. This investment will have a ripple effect in the value chain of many African economies value chain, creating employment opportunities, efficient and timely delivery of products and competitive pricing.’

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l AFRICA & MIDDLE EAST

Oiltanking buys additional stake in Iran chemical terminal Oiltanking has expanded its investment in the port of Bandar Imam Khomeini in Iran with an additional stake in a storage terminal. The company has acquired an additional stake of the indirect ownership in Exir Chemical Terminal PJSCo – increasing its indirect stake from 35% to a majority share of 70%. The terminal, a joint venture between Oiltanking Odfjell and private Iranian investors, was commissioned in January 2010. It is strategically located in the petrochemical special economic zone of Bandar Imam Khomeini and is connected by pipelines to jetties of the zone at the Persian Gulf and comprises 18 tanks with a capacity of 22,000 m3. Despite the sanctions that were placed against Iran, it has been in continuous operation in spite of the difficult market conditions. In a statement Oiltanking says: ‘Oiltanking considers the acquisition as a unique opportunity to build a majority stake in a state-of-the-art terminal. ‘While last year’s partial sanctions relief

has not yet unlocked the country’s full potential, the location of the terminal provides a significant opportunity for expansion to capitalise on expected market developments.’

VTTI acquires stake in Pakistan storage terminal project VTTI has bought a 51% stake in a storage terminal project in Pakistan for refined oil products. The greenfield project comprises 233,400 m3 of capacity at a location near Karachi. The company says in a statement that its international network combined with the support of local partners Hascol and Fossil will ‘ensure the future terminal is one of the key independent regional terminals required to supply the growing domestic market’. It adds: ‘It is expected that due to local economic and demographic growth, the demand for refined products will increase significantly in the future. Through this investment, we are supporting the development of the infrastructure needed to further develop energy security in the region.’

SCANDINAVIAN BY BIRTH

W O R L D

C L A S S

B Y

C H O I C E

600.000 CBM

OF BULK LIQUID STORAGE CAPACITY THROUGOUT SCANDINAVIA

www.itank.se +46 (0) 31 49 34 60

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l EUROPE

TERMINAL NEWS EUROPE Alkion completes acquisition of LBC assets Alkion Terminals has completed the acquisition of a stake in LBC Sogestrol and the full ownership of tank terminals in France, Spain and Portugal. Additionally, the company has also bought a bulk liquid tank terminal in Italy from ENI. Alkion will be the sole owner and operator of Alkion Terminal Vado Ligure in Savona. It benefits from a strategic seafront location and is connected by pipeline to the Trecate Refinery. The company says it is committed to invest further in the modernisation and expansion of the facility’s storage capacity and infrastructure. Rutger van Thiel, CEO at Alkion Terminals and partner at Coloured Finches, says: ‘We look forward to continue serving the European petroleum and chemical industry at our ten Alkion terminals and to pursue

The transaction with LBC includes a 50% shareholding of LBC in LBC Sogestrol and full ownership fo four terminals in France, two in Spain and one in Portugal. Additionally, Alkion and Sogestran also completed the sale of Sogestran’s 50% shareholding in LBC Sogestrol. Once the transaction is closed, Alkion will be the sole owner and operator of LBC Sogestrol in La Havre, France. Following the transactions Alkion owns and operates nine terminals in four countries with a total capacity of more than one million m3. Alkion says it intends to invest further in improving and expanding the assets it has acquired to provide its existing and new customers a world-class service.

our ambition to further expand the Alkion network into Europe.’ The company was established in 2016 as a new terminal operator focusing on Western Europe. It is creating a network of terminals that perform a primary role in the hydrocarbon downstream and other liquid bulk logistics value chain.

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The updated 2017/18 Tank Storage terminal map lists the location of 1,500 facilities that offer third party storage for oil, chemicals, biofuels and gases.

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The tank storage sector remains an active market for mergers and acquisitions and this map is an excellent way of keeping track of the storage market. 902

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The map is free to all Tank Storage Magazine subscribers. A subscription costs €210 a year and includes seven issues of the magazine, as well as digital versions.

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Every issue includes exclusive interviews with terminal operators, market analysis on a particular region, a list of terminals that are being built/expanded around the world and a selection of articles on way to make terminals safer and more efficient. SOUTH AMERICA AND ANTARTICA Terminal Name

Terminal Country Terminal Port

886 Compañía General de Combustibles S.A. Argentina 887 Destileria Argentina de Petroleo S.A. (DAPSA) Argentina 888 Oiltanking Ebytem S.A. (Puerto Rosales) Argentina

Punta Loyola Buenos Aires Bahia Blanca

Terminal Website www.cgc.com.ar www.dapsa.com www.oiltanking.com

Total Cap. (m³) No. Tanks 140000 145800 479994

8 75 18

Products CO, PP CO, PP, CP CO, VO, OP

Access S, RL, P S, RD S, RL, RD, P

Draft Max (m) 12 7 13

To subscribe now, email margaret@tankstoragemag.com or visit www.tankstoragemag.com/shop 889 Petromining S.A. 890 Rutilex Hidrocarburos Argentinos S.A. 891 Terminales Maritimas Patagonicas S.A.

892 Vitco S.A. (Vitol Zarate) 893 Ageo Terminais e Armazéns Gerais S.A.

894 Cattalini Terminais Maritimos S.A. 895 Cattalini Terminais Maritimos S.A. (CT 04) 896 Decal Brasil Ltda.

897 Dow Química Co. (Guarujá) 898 FSO Cidade de Macae MV15 899 Granel Química Ltda. (São Luís)

900 Petróleo Brasileiro S.A. (Ilha Comprida) 901 Transpetro S.A. (Angra dos Reis) 902 Transpetro S.A. (Aracajú)

903 Transpetro S.A. (Cabiúnas) 904 Transpetro S.A. (Campos Elíseos) 905 Transpetro S.A. (Guararema) 906 Transpetro S.A. (Ilha d’água)

907 Transpetro S.A. (Madre de Deus) 908 Transpetro S.A. (Mucuripe) 909 Transpetro S.A. (Osório)

910 Transpetro S.A. (Paranaguá) 911 Transpetro S.A. (Pecém) 912 Transpetro S.A. (Santos)

913 Transpetro S.A. (São Francisco do Sul) 914 Transpetro S.A. (São Sebastião) 915 Transpetro S.A. (Vitória)

916 Ultracargo (Aratu) 917 Ultracargo (Santos)

918 Ultracargo (Suape) 919 Vopak Brazil S.A. (Santos) 920 Interacid Chile Ltda (Mejillones)

921 Terminal Mejillones S.A. 922 S.P.R. Buenaventura S.A. 923 Oiltanking Colombia S.A. (Puerto Bahia)

924 OCP Ecuador S.A. 925 OCP Ecuador S.A. (Marítimo) 926 Consorcio Terminales (Callao)

927 Consorcio Terminales (Mollendo)

928 Pure Biofuels Del Peru S.A.C. 929 Vopak Venezuela S.A.

Argentina Argentina Argentina

Argentina Brazil

Brazil Brazil Brazil

Brazil Brazil Brazil Brazil

Brazil Brazil Brazil

Brazil Brazil

Brazil Brazil Chile

Chile Colombia Colombia

Ecuador Ecuador Peru

Peru

Peru Venezuela

Campana Campana Caleta Cordova

Zarate Santos

Paranaguá Paranaguá Suape

Guarujá Campos Basin Itaqui

Ilha Comprida Angra Carmópolis

Macae Rio de Janeiro Guararema

Rio de Janeiro

Madre de Deus Mucuripe Osório

Paranaguá Pecém Santos

www.trafigura.com www.rhasa.com.ar www.termap.com.ar

www.vitco.com.ar; www.vtti.com www.ageoterminais.com.br

www.cattaliniterminais.com.br www.cattaliniterminais.com.br www.decalstorage.com

www.dow.com/brasil www.petrobras.com www.granel.com.br

www.petrobras.com.br www.transpetro.com.br www.transpetro.com.br

www.transpetro.com.br www.transpetro.com.br www.transpetro.com.br www.transpetro.com.br

www.transpetro.com.br www.transpetro.com www.tranpetro.com.br

www.transpetro.com.br www.transpetro.com.br www.transpetro.com.br

São Fransciso do Sul www.transpetro.com.br São Sebastião www.transpetro.com.br Vitória www.transpetro.com.br

Aratu Santos

Suape Alemoa Mejillones

Mejillones Buenaventura Cartagena

Lago Agrio Esmeraldas Callao

Mollendo

Callao Puerto Cabello

www.ultracargo.com.br www.ultracargo.com.br

www.ultracargo.com.br www.vopak.com www.interacid.cl

www.ultraportchile.cl www.sprbun.com www.oiltanking.com

www.ocpecuador.com www.ocpecuador.com www.oiltanking.com

www.oiltanking.com

www.pbf.com.pe www.vopak.com

128000 229000 330000

13 67 14

217380 193201

24 105

200000 341822 127045

30 1 49

257599 140000 105141

154042 978066 155788

489968 552292 1048992 165066

656690 128000 701200

204134 128000 346136

466622 2069313 105656

209470 286309

130688 174141 136000

220000 230000 424160

190785 596200 179969

134924

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58 19 13

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12 10 14 20

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10 38 21

89 156

35 112 7 11 20 8

6 10 33

19 145

PP, B PP CO

PP, CP, VO PP, CP

PP, CP, VO PP, B CO, PP, CP, B, OP

CP CO CP, VO

PP, LNG, LPG CO, PP CO

CO, NGL CO, PP CO, PP, B PP

PP, LPG, B CO, PP, NGL, LPG CO, PP

PP, NGL LPG PP, LPG, B

B, RD B, RD, P S, RD, P

S, B, RD S, RD

S, RL, RD S, B, RD S, RD, P

S, RD S S, RL, RD

S, P S, RD, P S, RL, RD, P

RD, P RD, P RD, P S, P

S, RD, P S, RD, P S, RD, P

S, RL, RD, P S, RL, P S, RD, P

CO CO, PP, CP PP, CP, B

S, RD S, P S, RL, RD

PP, CP, LPG, VO, B PP, CP, VO, B, OP CP

S, RD, P S, RD S, RL, RD

PP, CP, VO, B S, RL, RD, P CO, PP, CP, LPG, VO, B S, B, RD, RL

CP CO, PP CO, PP

CO CO PP, CP, LPG, B

PP, LPG, OP

VO, B, OP CP, VO

8 18

10 15

12 12 17

Terminal Country

Terminal Port

Terminal Website

Total Cap. (m³) N o. Tanks Products

Dubendi

www.mepf.com

341000

CO, PP

S, RL, RD, P

Chittagong

www.sagroupbd.com

105000

PP, CP, VO, OP

S, B, RD

19 Changjiang International Yangzhou Petrochemical Terminal

China

Yizheng

www.cj-int.cn

136250

B, RD

20 Changshu Huarun Chemical Co., Ltd.

China

Changshu

www.cscrcchem.com

160000

Access Draft Max (m)

Azerbaijan Bangladesh

S, B, RD

21 Changshu Huihai Chemical Terminal Co., Ltd.

China

Changshu

www.southernpec.com

340000

PP, CP

B, RD

22 Changshu Qianhong Petrochemical Terminal Co., Ltd.

China

Changshu

www.cn-nthq.com

152000

CP, NGL

B, RD

8 16

23 ChangZhou XinHua Petrochemical Storage and Transportation

China

Changzhou

115000

CP, NGL

B, RD

24 Changzhou Xinrun Petrochemical Terminal Co., Ltd.

China

Changzhou

544000

CP, LPG

B, RD

25 China National Silk Yingkou Xianrendao Liquid Chemicals

103600

26 Dalian Chang Xing Island Port Investment & Development

China

Dalian

1200000

27 Dalian Mingyuan Storage Tank Wharf Co., Ltd.

China

Dalian

144000

28 Dalian Port Oil Terminal Co., Ltd.

China

Yingkou

www.crcchem.com cstank.com www.dlmy.com

Dalian

www.portdalian.com

29 Dalian Port Petrochemical Co., Ltd.

China

Dalian

www.dlport.cn

30 Dongguan Dongzhou International Petrochemical Storage

China

Dongguan

31 Dongguan Evergrowing Terminal Co., Ltd.

China

Dongguan

32 Dongguan Humen Port Jiufeng Petrochemical Terminal

China

Dongguan

www.grsl.cc

3988000

125

S, RL, RD S

S, RL, RD

CO, PP, CP

S, RL, RD, P

4100000

PP, CP

S, RL, RD

278000

PP, CP

S, RD

CO, PP PP, CP

25 15

241300

PP, CP

S, B, RD

441500

PP, LPG

S, B, RD

35 14

12 12 19

11 15 12

14 15 19

30 11

13 11

CP Chemical Products

PP Petroleum Products

Whilst every effort has been ma responsibility for inaccuracies and wish to recommend a terminal for i

12 12

15 12 14

KEY CO Crude Oil

Terminals in very populat capacity of 100,000m3 ha full details have not been of space. For further infor margaret@tankstoragema

22 23 12

S, RL, RD S, RD S, RD, P

S, RD S, RD

Terminal Name

17 Middle East Petroleum (Dubendi) 18 South Eastern Tank Terminal Ltd.

S, RL, RD, P

RD, P S, RD, P S, B, RD, RL

ASIA

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l GLOBAL

Flying the flag 5 strategically located countries in Northern Europe 16 terminals 4.3 million cubic metres of storage 85+ years of experience 1st choice in bulk liquid and gas storage Inter Terminals Ltd +44 (0)1737 778108 Info@InterTerminals.com | www.InterTerminals.com Inter Terminals is owned by Inter Pipeline Ltd. www.interpipeline.com AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l EUROPE

Investment company to acquire stake in LBC Tank Terminals

Last storage tank completed for Botlek expansion HES Botlek Tank Terminal’s storage capacity expansion is almost complete following the completion of the last tank.

Private investment company Ardian has signed an agreement to acquire a stake in LBC Tank Terminals from Super and Sunsuper. Following the transaction, Ardian will hold a 35% share in LBC and current shareholders APG and PGGM will remain invested in the company with a 32.5% stake each. Walter Wattenbergh, Group CEO of LBC, says: ‘We are delighted to welcome Ardian as a new shareholder. LBC is at a significant transition point in its business strategy, in particular as the business shifts its focus toward expansion of its facilities in the US and Europe. ‘This trend has been identified by Ardian and we value the experience and support they provide to LBC during this period of strategic change.’ LBC represents the 3rd US dollar denominated investment undertaken by the Ardian Infrastructure team in recent months. Completion of the transaction is subject to a number of conditions including relevant regulatory approvals.

The last tank, which was built off-site, will be transported to the facility on July 21, thus concluding the project which comprised seven ready-to-install tanks with a volume of 10,000 m3, which were transported from the SJR Group’s Rotterdam construction site to Botlek over water. Charles Smissaert, MD of terminal, says: ‘The construction and delivery of

these tanks is part of a bigger project, which is set to more than double HES Botlek Tank Terminal’s storage capacity from 200,000 m3 to 477,000 m3. The expansion has been partly executed by the delivery of a total of seven off-site constructed storage tanks. This expansion is covered by a multi-year contract.

TANK & TERMINAL DEMOLITION

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www.midwest-steel.com demolition@midwest-steel.com 713-991-7843

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l GLOBAL

TERMINAL NEWS GLOBAL

Crude oil inventories to increase mid-2018 The largest global increase of crude oil inventories is expected in the second quarter of 2018.

he EIA’s Short-term energy outlook was revised slightly downward following OPEC’s announcement of an extension to production cuts for the next nine months. OPEC’s crude oil production target will remain at 32.5 million barrels per day through to the end of the first quarter of 2018. As a result, the EIA now forecasts OPEC members’ crude oil production to average 32.3 million barrels per day in 2017 and 32.8 million barrels per day in 2018. Total OPEC liquid fuels production is also expected to be lower than previously forecast however, contin-

‘Supply growth in 2018 could contribute to downward pressure in oil prices as early as late 2017’ uing production growth in many non-OPEC countries is expected to moderate the pace of global liquid fuels inventory draws in 2017. The largest global inventory increase in the forecast occurs in the second quarter of 2018, when Brazilian and OPEC production are expected to increase by 570,000 barrels per day and 220,000 barrels per day, respectively. Supply growth in 2018 could contribute to downward pressure in oil prices as early as late 2017. However, EIA’s STEO forecast assumes that OPEC cuts will be extended beyond March 2018 but that non-compliance will begin to grow in late 2017 and increase in the second half of 2018. The agency expects US crude oil production to increase through 2018, averaging 9.3 million barrels per day in 2017 and 10 million barrels per day in 2018. OIL MARKET REBALANCING Oil market volatility has started to decline and investment in the industry has started to improve as a result of OPECs production cut. The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) noted that the oil market is making ‘steady and significant progress towards rebalancing’. It found that the continued strengthening of global recovery is underway. According to a report by the Joint OPEC-NonOPEC Technical Committee, oil demand is expected to increase significantly in the second half of 2017, compared to the first half, with growth reaching 2 million barrels per day. Additionally, between January and June 2017, the participating producing countries reduced their production by an estimated volume of 351 million barrels. However, the JMMC noted that despite the successes, more can still be improved by some participating producing countries.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

INCIDENT REPORT

INCIDENT REPORT A summary of the recent explosions, fires and leaks in the tank storage industry 13/7/17

30/7/17

Bastrop County, Texas

Rotterdam, the Netherlands

Magellan Midstream Partners

Shell Pernis Refinery

An accident at a pumping station caused 1,200 barrels of crude oil to spill from Magellanâ&#x20AC;&#x2122;s Longhorn Pipeline. A maintenance contractor struck a fitting on the pipeline four miles southwest of Bastrop, resulting in the company shutting the pipeline and isolating the affected segment. A mile-wide evacuation of the surrounding area was put in place. More than 100 workers assisted in the clean-up effort. No one was injured in the incident.

Shell shut down Europeâ&#x20AC;&#x2122;s biggest refinery following a fire at one of its high-voltage power stations. Firefighters quickly brought the blaze under control however executives at the refinery decided to shut down all units at the site as they are all interconnected and several of them were out of service due to the power outage caused by the blaze. An investigation was launched into the cause of the fire.

16/7/17 23/7/17

Calabar, Cross River State, Nigeria

Jackson Point, Cayman Islands

Linc oil and gas tank farm

Sol Petroleum Firefighters battled for eight hours to extinguish a blaze inside a diesel tank. The fire was detected by an on-site technician. Thermal imaging cameras were used to establish the source of the fire before it was doused with foam and cooling water jets. No one was injured and an investigation has been launched to establish the cause of the fire.

A total of 9 people died and many were injured following an explosions and fire at a tank farm. It is believed the incident occurred when a vessel was supplying petrol to two tank farms in the early hours of the morning. The injured were taken to a nearby hospital in Calabar. Eyewitnesses said that one of the pipes was opened and petrol followed through gutters which then sparked and caught light. Some vessels along the river next to the facility were destroyed.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TERMINAL NEWS l XXXXXXX

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

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

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TANK TERMINAL UPDATE

TANK TERMINAL UPDATE ASIA Fauji Oil Terminal & Distribution Company, Trans Group

Puma Energy, Asia Sun Energy

Location:

Port Qasim, Pakistan

Location:

Thilawa port, Myanmar

Products:

Petrol

Products:

Commercial fuels, HFO, bitumen, jet fuel

Capacity:

100,000 tonnes

Investment:

$92 million

Construction/expansion/ In the second phase of the new facility, acquisition: capacity could be expanded from 100,000 tonnes to 280,000 tonnes.

Construction/expansion/ The new terminal is the largest and most acquisition: modern refined products import terminal in Myanmar

Investment:

$25 million

Comment:

The company says capacity has been needed for a while as petrol imports have increased by 40% in the last four years

The facility will support the country’s increasing need for transport fuel

Pengerang Independent Terminals

Ergon Location:

Ulsan, South Korea

Products:

Bright stock, naphthenic grades, transformer oils

Construction/expansion/ The new liquid storage terminal means acquisition: Ergon’s products are now available in the Asian market Comment: In addition to the new terminal, the company also launched a new regional office in Singapore

Location:

Pengerang, Malaysia

Products:

Clean petroleum products

Capacity:

430,000 m3

Construction/expansion/ The expansion comprises 24 new tanks and acquisition: will be commissioned progressively from the first quarter of 2019 Comment:

The expansion also includes one extra berth and it will bring overall capacity to 1.7 million m3

Jurong Port, Oiltanking Location:

Jurong Port, Singaproe

Products:

Clean petroleum

Capacity:

232,000 m3

Weifang Sime Darby Liquid Terminals Location:

Shandong, China

Products:

Oil, chemical

Construction/expansion/ The JV project comprises 19 storage tanks, acquisition: pump stations, valve manifolds, firefighting system, slop and waste water system, jetty topsides and interconnecting pipeline from Jurong Port to Oiltanking’s terminal

Investment:

RMB 2.8 billion

Investment:

$140 million

Comment:

The facility will have the potential to add another 230,000 m3 of capacity

The second phase, with 91,000 m3 of capacity will become operation in October. The final phase, with a further 164,000 m3 will be completed by the first half of 2019

Construction/expansion/ The first phase of the new facility opened in acquisition: August, with a storage capacity of 406,000 m3.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TANK TERMINAL UPDATE

Philippine Coastal Storage and Pipeline Corporation

ATS

Location:

Subic Bay Freeport Zone, Philippines

Location:

New Mangalore Port, India

Products:

Diesel, petrol, jet and fuel oil

Products:

Capacity:

540,000 barrels

Petroleum products, naphtha, gas oil, motor spirit, para-xylene, methanol, petrochemicals

Capacity:

316 litres

Construction/expansion/ Three new 180,000 barrels fuel storage acquisition: tanks and two tank truck loading racks were added

Construction/expansion/ Raftaar Terminals is the first tank terminal at acquisition: the port to be constructed in stainless steel

Comment:

The expansion will increase overall capacity to 5.2 million barrels

It also has a jetty pipeline making it suitable for all acids

Phoenix Petroleum Philippines Consolacion, Cebu

Products:

Diesel, petrol, jet fuel, special fuel oil, industrial fuel oil

Capacity:

15 million litres

Construction/expansion/ The facility was built to better serve the fuel acquisition: and lubricant needs of the growing Phoenix retail network and various commercial customers It is Phoenixâ&#x20AC;&#x2122;s largest facility in the Visayas

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

RWATER SI VE

APORE NG

25 YEARS

Comment:

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

Location:

K TA N KS JAC

PROFILE l BENALEC

Johor: Malaysia’s most promising oil cluster With Johor expected to become one of Malaysia’s major oil clusters, Benalec’s Tanjung Piai Maritime Industrial Park is poised to become an attractive storage alternative to land restricted Singapore

ith significant refining capacity expected to come on stream in the next two years, Johor is one of Malaysia’s most promising major oil clusters – and the government has ambitious and strategic plans for its storage capabilities too. Currently, independent storage capacity in the Johor region is around 3.5 million m3 compared to Singapore’s more significant 13 million m3. However, with new refining capacity from the Petronas RAPID project due to come on stream in the first quarter of 2019, the region could have vast amounts of available storage and logistical potential. In a bid to capitalise on its potential to become a major oil cluster, the Malaysian government is taking a more active role to reach its target of 10 million m3 of storage by implementing attractive economic strategies and industry regulations to encourage foreign investments into oil storage. Benalec’s Tanjung Piai Maritime Industrial Park project is aligned to be an integral part of the Malaysian government’s plans for Johor to become a regional oil and gas hub. AN ATTRACTIVE ALTERNATIVE The park, a man-made island spanning 3,485 acres of land, intends to offer a viable and attractive storage and logistical alternative to draft and land restricted Singapore. Its location within Platts FOB Straits oil price assessment and its proximity to Singapore’s Jurong Island, one of the most important refining

and petrochemical hubs in the world, makes it an attractive and viable storage location. Benalec, the master developer of the park, aims to transform it into an integrated oil and gas complex in the longer term. Reclamation of the land is spread across three phases and is expected to take 15 years to complete. The first reclamation phase comprises 1,080 of land and Benalec is currently in talks with several parties who are interested in an outright purchase of land as well as the leasing of several plots of land within the park. Since obtaining full environmental impact assessment (EIA) approval in June 2016 for

all three phases of its reclamation project, the company has sand-filled up to 200 acres and is concentrating on preparing the first 100 acre plot on the southwestern tip of the park for development. This will eventually contain the Tanjung Piai Oil Terminal – a deepwater oil storage facility. The first phase of the terminal project is due to be operational by early 2020. The plot is currently undergoing soil consolidation works using prefabricated vertical drains to accelerate the consolidation process. Once complete, surcharging and rock revetment will follow and this 100 acre parcel of land is expected to be fully ready for topside con-

The park is a man-made island spanning 3,485 acreas and will be developed in three phases

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

PROFILE l BENALEC

Work is underway to prpare the first 100 acre plot for development

TANJUNG PIAI MARITIME INDUSTRIAL PARK AT A GLANCE: The park is a man-made island with sea fronting industrial land spanning 3,485 acres within the vicinity of Port of Tanjung Pelepas Phase 1 comprises 1,080 acres of land and will include the Tanjung Piai Oil Terminal, which is due to be completed by 2020 The park features natural water depths of up to 30 meters, which leads to significant costs savings in jetty design and construction It has direct access to the Straits of Malacca, which attracts more than 30% of global oil trade

struction works by the first quarter of 2018. In an interview with Tank Storage Magazine Mike Beviss, senior commercial advisor for Benalec Holdings, explains that the development has several unique characteristics that make it ideal for operating bulk liquid terminals. ‘It is strategically located at the confluence of Malacca Straits, Singapore Straits and Johor Straits, making it well placed to capture value-added activities from one of the busiest shipping lanes in the world, including the movement of oil tankers representing over a quarter of the global oil trade. ‘It is also close to other major ports in South East Asia, and coupled with its natural deepwater of 30 metres and the availability of vast tracts of land for future expansion, we believe that it is an extremely viable alternative to Singapore. ‘We have currently identified and are in negotiations with a first-class terminal operator, together with a prospective term customer, with whom we hope to conclude

mutually acceptable arrangements by the end of 2017.’ The entire project has been granted EIA approval, including pre-approved works for topside development of oil storage terminals. Beviss says this removes the most significant licensing hurdle for potential developers and will significantly expedite any future project developments.

Our ambition has always been to create an integrated oil and gas complex, a smaller but similar version of Jurong Island

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

ECONOMIC ADVANTAGES There are several economic benefits that the hub offers traders and operators who are looking to start business in the flourishing region. Ai Lin Leaw, executive director of Benalec Holdings, says: ‘The park falls under flagship Zone C of Iskandar Malaysia – a 2,217 sq km economic development masterplan with five flagship zones, each with designated economic activities. The government-initiated masterplan aims to attract foreign investments and human capital to elevate the country to a developed nation status by 2020. Zone C of the masterplan also encompasses VTTI’s ATT Tanjung Bin storage facility as well as the Port of Tanjung Pelepas. ‘Incentives available for storage terminal developers within Iskandar Malaysia include pioneer status, which grants up to 100% corporate tax exemption between five to ten years or investment tax allowance, which provides for an allowance of 60% to 100% of qualifying capital expenditure incurred to be set off against corproate tax payable for the corresponding time period. ‘There are also incentives for traders, including a flat fate of 3% corporate tax on chargeable income. Another new industry regulation is the fact that the Malaysian Ministry of Finance decreed in July 2017 that goods and services tax will be zero rated for all storage, blending and heating services provided by Malaysian terminal operators within bonded warehouse areas and free commercial zones to its overseas storage customers. Additionally, Leaw adds that Benalec is also applying for a free commercial zone status for the entire park, meaning there will be no import and excise duty if a product is re-exported or until it leaves the zone for domestic use. STORAGE VISION Beviss says: ‘Our ambition has always been to create an integrated oil and gas complex, a smaller but similar version of Jurong Island. We would like to see storage of feedstocks, power plants and downstream oil and gas related plants, although we do not have enough land to be open to other market demands such as renewable fuels and other marine industries. ‘We continue to see demand for the storage of oil products and components that need blending for distribution in the region, which includes fuel oil, middle distillates and motor petrol. ‘In the future we probably will also see increased demand for crude oil storage and blending, making the park ideally placed to satisfy this future requirement.’

FOR MORE INFORMATION www.tgpiaimaritime.com.my www.benalec.com.my

PROFILE ANALYSIS MARKET l XXXXXX XXXXXX l ELECTRIC CARS

RIDING THE ELECTRIC HIGHWAY As the role of the electric vehicle in the future is brought into the fore – many are questioning what impact this could have on oil demand going forward and how it will affect oil markets and the role of tank terminals. Jasmin McDermott reports

he rise of the electric vehicle has delivered some startling headlines in recent months. The UK is the latest in a string of countries to acknowledge the growing popularity of EVs (electric vehicles) by pledging to ban the sale of all diesel and petrol cars and vans from 2040. It is part of the British government’s clean air plan, which is needed due to the ‘unnecessary and avoidable impact’ that poor air quality has on people’s health. It follows a similar pledge by France, driven by the country’s plan to meet its targets under the Paris climate accord. Likewise, India is also planning to phase out all diesel and petrol cars, however it aims to do this eight years earlier, by 2032. Global energy driver China is also embracing the EV phenomenon by pushing for 8% of car sales to be electric as early as next year – a quota that is pushed to 12% by 2020. By 2025, seven million electric vehicles will be on the country’s roads. And it is isn’t just countries that are moving away from traditional fossil-based cars. Volvo has announced that all cars produced from 2019 will be either hybrids or fully electric while other major car manufactures such as BMW, VW and Renault-Nissan have declared plans for electric cars, supported by government grants. The IEA’s 2016 World Energy Outlook has also noted the growing appeal towards EVs. In 2015, the worldwide stock of electric cars reached 1.3 million, almost double of 2014 volumes. In its main energy scenario, the IEA envisages more than 30 million EVs by 2022, exceeding to 150 million in 2024 and reducing oil demand in 2040 by 1.3 million barrels per day. TRANSPORT DISRUPTION Stanford University economist Tony Seba and

James Arbib have a more radical view on the future of petrol and diesel cars and the oil industry as a whole. Their report, Rethinking transportation 2020 – 2030, envisages that no petrol or diesel cars, buses or trucks will be sold anywhere in the world by 2025 – a mere eight years away. In fact, the report goes further and suggests that people will stop driving altogether, instead switching to on-demand self-drive EVs. ‘We are on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history. Internal combustion engine vehicles will enter a vicious cycle of increasing costs,’ the report says. Global oil demand will drop from 100 million barrels per day in 2020 to around $70 million barrels per day in 2030. The long-term price of oil will drop to around $25 per day and oil prices might ‘collapse’ as soon as 2021. The report notes: ‘The TaaS (transport-asa-service) poses existential threats to the oil industry. ‘The effects of such a dramatic decrease [in oil demand] will ripple through the whole value chain, causing systematic disruption from oil fields to pipelines to refineries.’ Delving deeper into the report, the authors’ state that oil prices of $25 per barrel by 2030 will see ‘certain high-cost countries, companies and fields oil production entirely wiped out in this demand scenario’. More than half of the oil production in Canada, Brazil, Mexico, Angola and the UK will be stranded. In such a case, they project that investment in exploration, production, shipping, refineries and infrastructure will begin to dry up. Looking at the impact on pipelines and refineries, the report says the Dakota Access Pipeline and Keystone XL pipeline projects will be stranded.

It summarises: ‘Oil companies, as well as companies throughout the oil supply chain, have little room to manoeuvre as oil demand drops, with few strategies open to them given the speed of the disruption.’ OIL: A DIVERSE PRODUCT On the face of it, it paints a bleak picture for future oil demand given that up to 50% of a barrel of oil is refined to produce petrol for motor cars. However, Ratio Group MD Ellen Ruhotas believes that the report does not take into account that half of a barrel of oil is used to produce jet fuel, fuel oil for ships and heating, bitumen for roads, LPG for cooking and a range of petrochemicals. ‘I would not be so quick to write off the importance of oil, or so pessimistic in its pricing,’ she says in an interview with Tank Storage Magazine. ‘I don’t see the growth in demand for electric vehicles as a threat to oil markets. There is no doubt that as the cost of electric vehicles decreases and governments support the change over to EVs, we will notice a real difference in the type of vehicles we see on our roads, but the rate of uptake of new vehicles and rates of disposal of older vehicles will be key.’ Ruhotas says that the ‘threat’ to oil markets is not from the EVs themselves but rather from improved fuel efficiency for private cars, trucks, ships and aviation. ‘There is no doubt that there will be continuing year on year increase in demand for transportation, but this increase in demand will be offset by efficiency in vehicle and engine design,’ she explains. Figure 1 from Barclays Research highlights that despite an increase in demand for vehicles, with increased fuel efficiency and some

AUGUST/SEPTEMBER AUGUST/SEPTEMBER 2017 2017 VOLUME VOLUME 1313 ISSUE ISSUE NO.4 NO.4

MARKET ANALYSIS PROFILE l l XXXXXX ELECTRIC XXXXXX CARS

EVS: A GROWTH STORY

switching to EVs, total oil consumption for passenger vehicles increases by 6.7% by 2030. A MIXED VIEW The growing trend towards EVs – whether for technological or environmental reasons – is starting to be acknowledged more by oil majors and their future business strategies. Shell’s strategy, for example, has moved towards producing fuel for electricity, such as natural gas and renewables. According to a recent report by the Wall Street Journal, the company now produces more gas than oil and has plans to heavily invest in developing new energy sources, such as renewables. In its second quarter financial results, the company said it is preparing for a ‘lower forever’ oil price, where crude prices will never return to the precrash levels and where petroleum demand eventually declines as a result

of national government initiatives to phase out combustion engines in favour of EVs. On the other hand, Norwegian-based Statoil says there will continue to be a need for big investments in oil and gas due to a natural decline in supply from existing oil fields and that despite the growth of EVs, oil demand in other sectors will continue to drive demand. Statoil’s chief economist Eirik Waerness says: ‘Electric cars and plug-in hybrids could account for around 90% of private cars in 2050, and efficiency will be much higher than today. ‘Still, with heavy duty and maritime transport, aviation and petrochemical industry growth, oil demand will be above 60 million barrels per day.’ Exxon Mobil has a different forecast for future uptake of hybrids and EVs. In its outlook until 2040, it projects that in 2040, 15% of all

POTENTIAL EVOLUTION OF OIL DEMAND FROM PASSENGER VEHICLES (2016-30) Million barrels per day 35 -1.8 11.3

Growth in demand

Switching to electric vehicles

30 25

-9.0

Fuel efficiency gains

20.8

21.4

Oil demand (2016)

Oil demand (2030)

Source: Barclays Research

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

10 5 0

Figure 1 A projection by Barclays of how oil demand from passenger cars could evolve up until 2030

The number of electric cars on the road rose to 2 million in 2016, with China remaining the largest market, accounting for more than 40% of the electric cars sold in the world. In fact, according to the IEA, China is the global leader in the electrification of transport, with more than 200 million electric twowheelers and more than 300,000 electric buses. China, the US and Europe made up the three main markets, totalling over 90% of all EVs sold around the world. Between 9 and 20 million EVs could be deployed by 2020 according to the IEA, with the figure rising to 40 and 70 million by 2025.

cars globally will be hybrids and that only 10% of new car sales in the US will be EVs. It says that oil will remain the world’s primary energy source, with the 2040 energy mix comprising 32% oil, 25% natural gas, 20% coal with nuclear, wind and solar and other sources making up the rest. THE STORAGE PICTURE Looking at the possible impacts on the tank terminal industry, Ruhotas says there will remain a need for storage tanks for petrol, diesel, gasoil, fuel oil and jet fuel, however any new greenfield developments will be concentrated in key markets rather than a global increase in tankage, which has been the case in the past. ‘We won’t see demand for storage significantly decrease – we will always have a base load demand for oil used in transportation, petrochemical, gases and bitumen. ‘For storage terminals to see a significant decline, economically viable electric/LNG ships, long haul trucks and jets will need to be widely accepted.’

PROFILE l XXXXXX XXXXXX

20TH MARCH 2018

CRUISE TERMINAL ROTTERDAM R E C O G N I S I N G A N D R E WA R D I N G E X C E L L E N C E I N T H E S T O

THE JUDGES

James Foster Trading Manager, BP Oil International

Keith Jackson Operations Director, InterTerminals

Jonathan Silk

Technical Manager, Oiltanking Odfjell Terminal Oman

Oliver Stanelle General Manager Central Engineering, Oiltanking

Niels Van Bladeren

Laurent Hatzopoulos

Roel Brouwer

Corne van de Reijt

Chief Financial Officer, LBC Tank Terminals

International Technical Advisor, Vopak

Manager, Third Party Storage, Shell Trading

Global Manager, Project Management, Vopak

Tickets sold out in 2017 â&#x20AC;&#x201C; book yours now at www.tankstoragemag.com/awards

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

PROFILE l XXXXXX XXXXXX

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

PROFILE l JEONGIL XXXXXX XXXXXX STOLTHAVEN ULSAN

The gateway for North East Asia trade As the largest bulk liquid storage facility in the Ulsan industrial complex, Jeongil Stolthaven Ulsan tank terminal is embarking on more growth to handle greater demand for petrol and petrol product storage

eongil Stolthaven Ulsan is a crucial facility in Stolthaven’s network as it enables domestic and regional distribution throughout the North Asia Pacific region. The terminal, which is the largest bulk liquid storage facility in the Ulsan/Onsan industrial complex, is Stolthaven’s distribution hub for the region, therefore further development of the facility is vital to ensure it maximises its significant business potential. Since 2012, the facility has undergone several rounds of capacity expansion to cater for greater product demand as well as more customer requests. In 2005, Ulsan Port Authority

decided to construct a new port in front of the Jeongil site as part of strategic plans to make Ulsan North East Asia’s oil hub. The timing could not have been better for the terminal as it perfectly matched its growth plans. Anticipating that demand for petroleum product storage would increase in the near future, in 2012 company executives increased capacity by 550,000 m3 spread across 56 tanks. This extra capacity was quickly leased out and in 2015 seven speciality tanks, totalling 25,000 m3 of capacity, were built for an international company on a long-term contract.

In an interview with Tank Storage Magazine commercial manager Sang-Yol Ha says that future development of the facility is on the cards, with a further ten tanks due to become operational in September as well as plans for extra capacity in 2018. He says: ‘Many of our customers are continually asking for storage tanks for the blending of petrol and petrol components, so on the back of this demand we are building ten internal floating roof tanks. ‘We have additional land for expansion and we plan to start building an extra 200,000 m3 of capacity next year for a neighbouring

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

PROFILE l JEONGIL PROFILESTOLTHAVEN l XXXXXX XXXXXX ULSAN

JEONGIL STOLTHAVEN ULSAN AT A GLANCE: The facility serves as Stolthaven’s North Asia Pacific distribution hub It also serves as Stolt-Nielsen’s transhipment point for domestic and regional distribution It stores chemicals, petroleum products and vegetable oils It has 1.25 million m3 spread across 207 tanks refining company that has requested additional storage for petrol, naphtha and fuel oil. ‘Additionally, a Japanese company wants to have several large storage tanks in Ulsan, so we are building additional CPP and chemical tanks. ‘For our domestic customers, our facility is used for importing raw materials as well as for exporting finished goods. Our foreign customers use our tanks for selling products to Korean customers or to re-export to other destinations. ‘Traders store their cargo with us for trading, breaking bulk or making bulk, so our range of customers is diverse.’

01 The facility benefits from strong business in Ulsan port as well as from chemical companies and two refineries 02 Further expansion is planned for 2017 and 2018 03 60% of the tank are used for chemical storage and 40% are used for petroleum storage 04 The terminal is the largest in the Ulsan/Osan industrial complex and has seven jetties

STRATEGIC LOCATION The terminal benefits from strong business at Ulsan port, which is on the cusp of the first phase of its North East Asia oil hub project that will help it to cater to rising oil demand in the region. It also ideally placed among various chemical companies and two refineries in Ulsan. Ha says: ‘As we are in the centre of North East Asia, the terminal is located very near to Japan and China, so many customers are using Ulsan as a hub port. Demand for ethanol and petrol component

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

tanks is increasing – as evidenced by the company’s plans to further increase capacity for these products. Ha explains that around 60% of its tanks are used for chemical storage while the rest are used for petroleum and that he sees demand for petroleum products increasing further in the future. While there are several tank terminals in Ulsan, Jeongil is the largest and has seven jetties, significantly reducing any possible demurrage charges for its customers. ‘There are challenges with operating a facility in South Korea, mainly around government restrictions such as restrictions on blending, taxes for pipeline transfer between refineries and terminals and cabotage,’ explains Ha. ‘We aim to have the best customer service, the safest facility and to be the biggest tank terminal in the world.’

PROFILE l XXXXXX XXXXXX

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

MARKET ANALYSIS

l FUJAIRAH INVENTORY DATA

A VISIBLE SIGN OF SUCCESS Greater trading transparency is elevating Fujairah’s importance as a global benchmark, trading and storage hub

ujairah is the natural focal point for trading activity in the Middle East and is therefore a critical hub for oil trading and storage in the region. Its strategic location, extensive storage facilities and well-developed port infrastructure has helped it to become one of the top three global trading hubs after the ARA and Singapore. To support its global significance, the government of Fujairah sought out initiatives that would compel more trading activity and greater investment in the region. As such, the Fujairah Energy Data Committee established an agreement with S&P Global Platts to publish weekly inventory levels of various terminals within the Fujairah Oil Industry Zone (FOIZ). Since January 2017, storage data for light, middle and heavy distillates and residues has been published every week. Additionally, Platts launched its first independent, outright price assessments for the Middle East on a free-on-board Fujairah basis. The new benchmarks cover petrol, gasoil, jet fuel and fuel oil. In an interview with Tank Storage Magazine, Sohail Iqbal, member of the FOIZ Development Committee, says that this benchmark is key milestone in Fujairah’s efforts to establish itself as a ‘trading hub of global significance’. He says: ‘An objective of published the weekly inventory data is to establish Fujairah as the regional pricing centre next to Singapore and Rotterdam and this aspect is gaining momentum and bolstering stakeholder’s confidence day by day. ‘Since the launching of independent, outright price assessments and publishing of the weekly inventory data, Fujairah’s significance has shown prevalence in all the major international events related to the oil industry.’ In fact, despite market dynamics shifting from a contango position to backwardation and with less demand for storage, Fujairah is currently experience a near comparable high throughput volumes as it did in 2016. KEY INGREDIENT Visibility of supply and demand data is a key ingredient of successful liquid trading centres around the world, according to Dave Ernsberger, global head of energy at S&P Global Platts. ‘Publishing data reduces market opacity and enables traders and investors to see opportunities and risks more clearly, thus enabling them to make more informed commercial decisions.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

‘Market participants and analysts can compare Fujairah’s inventory data with similar inventory data from other trading hubs to build a strong picture of market fundamentals.’ And the market has reacted very positively to Fujairah’s weekly inventory data says Ernsberger. ‘Market participants in commodities markets are avid consumers of data, and in particular unique data that brings light and understanding to trade flows. ‘Our ambition is to see Fujairah stocks data and prices as widely followed and referenced information points by the world’s oil traders and analysts, and promote the transparency that the regional market needs in order to achieve its full potential. ‘There is strong demand in the global markets for a price hub in the Middle East to better manage the flow of wing barrel moving from the region to demand centres in Europe and Asia, and we believe Fujairah is well-placed to meet that benchmarking need.’ Iqbal says that the ultimate ambition from this project is to become a leading, global energy hub aligned to its leading producer status and develop Fujairah into a global benchmark hub.

Tank Storage Magazine will be publishing the weekly inventory data on its website, including analysis of market dynamics in the region. Visit www.tankstoragemag.com for the latest figures.

PROFILE l PORT OF ULSAN 01

Creating a storage first for South Korea

01 The port aims to be the storage and distribution point for liquid bulk in the Asia region 02 Increasing demand & excessive refining capacity is leading to a huge demand for oil storage 03 Pictured is the first phase of the oil hub construction project

Once complete the North East Asian oil hub project will make the Port of Ulsan the third largest storage hub for oil products and chemicals in the world, with 50 million barrels of capacity

he Port of Ulsan is positioning itself to absorb increasing demand for storage capacity in the Asia Pacific region following a significant paradigm shift in global trade. The world’s fourth largest liquid handling port is embarking on a significant expansion project, which, once complete, will see it vying for global third position as the storage and distribution hub for oil products and chemicals. The North East Asian oil hub project comprises the construction of commercial tank terminals on newly reclaimed land and is split in two phases. The first phase will involve the construction of 990 million barrels of capacity, with six berths for tanks of up to 120,000 DWT. This phase will mainly focus on storage petroleum products and chemicals, however, in an interview with Tank Storage Magazine Jinwon Choi, assistant manager at the Ulsan Port Authority, says that the addition of LPG and LNG tanks at this phase are also being considered.

04 It is the world’s fourth largest liquid handling port 05 The entire project will be complete by 2025

The terminals will be owned and operated by a specially created company, Korea Oil Terminal, which has investors including Korea National Oil Corporation, Ulsan Port Authority and S-Oil. The conglomerate are seeking further investors. Land reclamation for this phase was completed in July and, once the final investors are in place, upper tank terminal construction will start. A PARADIGM SHIFT Choi explains that following the dramatic oil price decline in 2014, coupled with the slowdown of China’s economic growth, created a paradigm shift in the global petrochemical industry, thus opening up new opportunities for logistics and distribution in the region. ‘This shift has thrown up new opportunities and challenges for producers, forcing them to forge strategies that will help them to secure long-term energy security and competitiveness,’ he says. Currently, 20% of global oil demand is focused in the North East Asian region and crude imports to the Asia Pacific region are expected to grow by nine million barrels per day between 2015 to 2040 – representing a 45% increase. ‘This variation reflects that future storage demand lies in developing countries, especially in the Asian region. ‘This is why the Port of Ulsan aims to be the storage and distribution point for liquid bulk moving within the Asia region, as well as the crude coming to Asia from the US, Russia and the Middle East. ‘Increasing demand, excessive refinery capacities and product spec differences across countries will increase the overall amount of trade flows in this area, resulting in huge demand for oil storage.’ GLOBAL CRUDE STORAGE The second phase of the project will be focused on the storage and trade of various types of crude oil globally and will comprise 1,850 million barrels of capacity. The Korean government is covering construction for the basic port

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

PROFILE l PORT OF ULSAN

PORT OF ULSAN AT A GLANCE: The port currently contains 11 tank terminals, with a combined capacity of 23 million barrels Out of 200 million tonnes of cargo handled by the port, more than 160 million tonnes is classified as liquid bulk Crude imports to the port total 70 million tonnes annually, which accounts for 50% of Korea’s crude oil demand SK Energy and S-Oil refineries are located in the port

infrastructure, which has already started following completion of a pre-feasibility study. Construction on the second phase will start gathering investors during 2018. Once complete in 2025, the newly expanded port will significantly boost trade to the region, and Choi envisions it will have a ripple effect on other organisations operating in Ulsan. ‘With this immense volume, Ulsan will provide the market with sufficient supply of storage needs, increase trade flows. This will boost the financial transactions within the area, developing added value industries such as insurance, lending, credit, oil trading, and futures and so on. ‘Throughout this whole process, the Port of Ulsan’s goal is to be the oil hub of North East Asia. Once complete, the Port will have 50 million barrels of liquid bulk storage capacity, which will place Ulsan as the world’s third storage hub for oil products and chemicals.’

LNG BUNKERING HUB In addition to the significant expansion of its storage capabilities, the port is also looking at introducing LNG bunkering. As part of a memorandum of understanding with eight other ports, Ulsan will work to create integrated guidelines for all ports to introduce LNG bunkering capabilities. This guideline will include safety procedures, the kind of equipment needed as well a training. Besides this, the Korean government is also conducting an LNG bunkering feasibility study which aims to set a direction for LNG bunkering in all Korean commercial ports. Choi says that the port is working closely with the government on the study, which will be released at the end of April 2018. ‘Through this LNG bunkering project, we hope to create an ecofriendly and green port and provide incentives for eco-friendly vessels. ‘New technologies and incentives will be implemented to create a cleaner and eco-friendly port.’

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PROFILE l JURONG ROCK CAVERNS XXXXXX XXXXXX

Going underground in Singapore

Nestled within the second largest global trading hub, the Jurong Rock Caverns facility’s unique concept allows for more storage potential within a land-constrained country

hen Jurong Rock Caverns opened Tank Storage Magazine, Cindy Koh, director of the first phase of its underground JTC’s energy and chemicals cluster, says that storage solution in 2014, it the remaining three caverns and associated achieved several firsts for the region. infrastructure will be ready for commercial The facility, located 130 meters beneath operations early next year. The agency is in Banyan Basin on Jurong Island, Singapore’s discussions with several prospects on the long energy and chemicals hub, is southeast Asia’s term lease of the remaining caverns. first commercial underground rock 02 cavern storage facility Waste Water Treatment Plant for liquid hydrocarTreats seepage water collected from the operational bons. It is also the tunnels and caverns, before deepest underground discharging it to the sea or re-injecting it into the water public works project in curtains Vapour Recovery Singapore. Unit Recovers product The caverns are from the vapours (product vapours a construction and and nitrogen) in the caverns engineering feat, Valve Manifold Area Import Flow taking JTC, the lead Metering Area Links import and export pipelines Measures product government agency between jetty and flow rate and responsible for the caverns volume development of industrial infrastructure, six years to design and plan and a further nine years to build. Construction work Vapours on the first two caverns and associated facilities was completed in March 2014 and were officially opened by Prime Minster Lee Hsien Loong in September 2014. The two caverns are currently leased out to a refinery on Jurong Island. In an interview with

She says: ‘[The JRC] exemplifies Singapore’s efforts in overcoming land constraints to sustain the long-term growth of the economy by exploring the use of underground spaces. ‘Conventionally, aboveground steel storage tanks are built to store liquid hydrocarbons,

Valve Manifold Area Links import and export pipelines between caverns and end-users

Export Booster Pumps & Flow Metering Area Boost product flow and measures product flow rate and volume

Administration Building Houses the central control room of the JRC operations

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PROFILE l JURONG ROCK CAVERNS 01 The Jurong Rock Caverns, Southeast Asia’s first underground rock cavern storage facility for liquid hydrocarbons

which occupy large tracts of land. ‘The JRC utilises subterranean space for storage that not only ensures the security of the products in storage, but also saves approximately 60 hectares of surface land for higher value-added activities, such as petrochemical manufacturing activities.’ Once the project is complete the caverns, each approximately nine-storeys high, will be able to store up to 1.47 million m3 of liquid hydrocarbons such as crude oil and condensate. AN ENGINEERING FEAT The planning and construction of the caverns was complex, particularly so because it required the excavation of the caverns 130 meters beneath the seabed. In addition, the team needed to construct 9km of tunnels and piping networks with supporting utilities. The international team of specialists assembled for this project also had to overcome the challenge of working in harsh underground conditions, challenging geological and ground conditions as well as water seepages. The caverns utilise the hydraulic containment principle for the storage of products. Hydrocarbons are kept within the caverns by maintaining a larger hydrostatic pressure outside the caverns than the pressure within.

02 A diagram showing how the JRC works 03 The Jurong Rock Caverns will free up surface land for other economic activities such as petrochemicals manufacturing.

Water curtains made of horizontal and vertical water-injected boreholes were also built to maintain this hydraulic pressure. Additionally, nitrogen is used to blanket the products in the caverns. Groundwater that seeps into the caverns is automatically pumped to the wastewater treatment plant aboveground. There is also a vapour recovery unit that recovers vapours and nitrogen in the caverns and returns the liquid hydrocarbons to the cav-

erns to ensure there is no product wastage, as well as to protect the environment. All these processes are monitored and controlled through a control room. The caverns also have their own fire-fighting system with fire-water and foam pipelines. FOR MORE INFORMATION For more information on short-term leasing options, email askjtc@jtc.gov.sg or call +65 6560 0056 by October 31.

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

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PROFILE ANALYSIS MARKET l XXXXXX XXXXXX l STORAGE IN ASIA Oiltanking Singapore, a petroleum terminal

OIL SLUMP MEANS BOOM TIME FOR ASIAN TERMINALS A voracious thirst for oil is fuelling demand for oil storage in the region, as Asia mops up excess crude supply. Criselda Diala-McBride reports

ore than three years since its fall from grace, oil still struggles to climb out of the downturn. To support an oil price recovery, OPEC and its non-member allies agreed to curb production by 1.8 million barrels per day – or around 2% of global oil output – starting in January 2017. But even with this intervention, benchmark Brent and WTI crude only managed to eke out minimal gains. As of 11 August, Brent has increased by just 0.39% to $52.10 per barrel, while WTI climbed 0.47% to $48.82 per barrel. With the output freeze deal extended until March 2018, OPEC aims to steadily shore up crude prices, reduce a stubborn global supply glut and bring back balance to the market. However, at the time of writing, eight months of production cuts have yet to flip oil futures into backwardation. Latest data from the International Energy Agency (IEA) points to Brent and WTI curves remaining in contango until December 2018. The energy watchdog also notes that current indicators suggest ‘oil traders no longer think stock draws will be significant this year’.

Although the deal to trim production initially received a 92% compliance among OPEC members, this figure plummeted to 75% in July, putting the black gold on a downward trajectory. Other factors that have stepped up pressure on oil prices are the increasing supply of US shale oil, and the higher flows in Libya and Nigeria, which are exempt from the OPEC output cut scheme. The IEA estimates that the two countries’ combined yield in June ‘diluted OPEC’s actual supply cut of 920 kb/d to just 470 kb/d’. It further warns that if Libya sustains higher production in July, and Nigeria records even a slight improvement, the cartel’s cut could stand at just 300,000 bpd. In Asia, OPEC’s efforts to slash production has not been enough to drawdown inventories, according to Muthukrishnan Prabakaran, global head of terminal and country head India at Gulf Petrochem. ‘As the inventory build-up [in Asia] is significant, the intended output cut could at best streamline the supply-demand imbalance, but a reversal of prices to pre-2016 levels is unlikely,’

he says. ‘Globally, the output cut would bring supply of crude in line with demand and contain the oversupply and force some semblance [of improvement] in the market.’ UNQUENCHABLE THIRST As the world remains awash with crude, the market finds Asia mopping up excess supply. The continent’s insatiable appetite – it consumes more than a third of global crude supplies – means it is also a highly significant market for oil-exporting countries. Demand in Asia has been robust, according to OPEC’s Monthly oil market report, published on 10 August. Oil consumption growth in OECD Asia, which includes Japan and South Korea, has been relatively positive. Japan saw a 0.03 million bpd decline in oil demand in June, but this was offset by high requirements for LPG, naphtha, jet kerosene and gas diesel oil in the transportation and industrial sectors. South Korea, meanwhile, witnessed a 0.04 million bpd year-on-year increase in oil consumption in May, according to OPEC’s latest data.

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MARKET ANALYSIS l STORAGE IN ASIA

Crude oil consumption in non-OECD Asia, which includes China and India, is projected to be 25,000 bpd in 2017, thanks to an ‘upward revision in China of [100,000 bpd] in 2Q’, which is buoyed by the country’s upbeat transportation and petrochemical sectors. Crude oil imports in Asia’s economic powerhouse stood at 8.4 million bpd in April, jumping by 5.5% compared with the same period last year, Market Realist reports, quoting data from China’s General Administration of Customs. In India, year-on-year oil consumption growth increased minimally in June, led by petrol demand, which expanded by 0.1 million bpd, while gas diesel oil demand was up 6.4%. The country’s subdued appetite has been attributed to a currency shortage as a result of the government’s ‘demonitisation’ policy, which rendered 1,000 and old 500 rupee notes worthless. The move was designed to drive black money out of the shadows. In its first quarter analysis on global oil demand trends, Wood Mackenzie says India’s crude consumption will rise by 200,000 bpd in 2017, around 31% lower than the 290,000 bpd increase recorded last year. Factors that will shift Indian demand to the upside include a recovery in car sales (a boon for petrol); stronger agriculture sector (positive for diesel); and LPG replacing kerosene as cooking fuel. MARKET IN CONTANGO A protracted oil slump bodes well for Asian terminal operators because with supply exceeding demand, storage requirements have accelerated, says Prabakaran. Recently, the need for storage has been so intense that traders were forced to commission aging very large crude carriers, each capable of carrying two million barrels, for up to six months, in addition to around 30 supertankers currently being used for long-

Asian storage operators would face the challenge of reduction in occupancy levels and pressure on storage rental rates Muthukrishnan Prabakaran, global head of terminal and country head India at Gulf Petrochem

term storage around Singapore and Malaysia, according to Reuters. ‘Asian markets derived the best advantage from falling [oil] prices. For example, India [was able to] enhance its crude and product inventories. Furthermore, as the surplus oil was readily available for delivery, oil futures were in strong contango. This helped trading entities to increase the storage of cheaper oil for future deliveries,’ he explains. In addition, refineries took advantage of the situation by operating at higher capacity, he adds. According to OPEC, refinery runs in Singapore averaged 89.5% in June, a four-percentage-point increase from the previous month, and Japanese refineries averaged 89.9% of their capacity, up by 9.3 pp, month on month. And while China’s refinery runs may have declined by 260,000 bpd in July, its throughput in June was a staggering 11 million bpd.

Oiltanking Karimun has demonstrated a robust performance since opening last year

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Prabakaran adds that while enhanced production of light distillates, such as petrol, was absorbed by the international market due to robust consumption, middle distillates like diesel had lesser demand, which raised the need for additional storage. This positive sentiment is also reflected among the region’s new terminals, such as Oiltanking’s Karimun unit in Indonesia, which has demonstrated robust performance since it was commissioned in June last year, says Sjoerd Boer, vice president commercial at Oiltanking Asia Pacific. In June this year, S&P Global Platts announced that it is including the 70,000 m3 capacity Karimun terminal in its Singapore pricing process for gasoil, jet fuel and petrol cargoes, starting 3 July 2017. ‘We are proud to have welcomed a well-balanced and diversified portfolio of customers spread over a wide range of products,’ Boer told Tank Storage Magazine. ‘In addition, the operational activity exceeded expectations despite adverse market conditions for several product types.’ He says it is still too early to tell what kind of impact the Platts pricing inclusion has on Oiltanking’s operation. ‘However, the terminal has been gaining more traction from the market because the Platts inclusion provides opportunities for companies of which the vast majority of [their] business is related to Platts trading,’ he points out. Aside from Karimun, Oiltanking also operates two terminals in Singapore: Oiltanking Singapore, a petroleum terminal, and Oiltanking Helios, a fuel oil terminal. WHAT DRIVES STORAGE DEMAND Boer believes that trends affecting regional demand today are the same as last year’s: soaring output and consumption of biofuel; sulphur cap on petroleum products; closure of Australian oil refineries; and concerns over security supply. ‘[These] four factors… are still relevant for 2017, although the biofuel production increase will only have impact on a specific storage segment, while the other factors are growth drivers for the entire liquid storage industry. ‘Other important elements that will drive storage demand in 2017 are the longer than anticipated temporary refinery shutdowns in the Asia-Pacific and the ongoing regional deficits that are in place for certain product-market combinations,’ he says. Prabakaran agrees, but also highlights issues surrounding the International Maritime Organisation’s (IMO) directive, which requires ships to use fuel oil with only 0.5% sulphur content from January 2020 to minimise emissions. He enumerates these challenges as: ‘1) readiness of the shipping industry to bear the additional cost [of compliance]; 2) hastening

MARKET ANALYSIS l STORAGE IN ASIA

sition of a 50% stake in VTTI in 2015, which it eventually sold to Buckeye Partners in 2016; and Glencore selling 51% of its global oil storage shares to China’s HNA Group for $775 million in April this year as Chinese demand for oil storage ramps up. ‘Globally, the inventory drawdown since January 2017, is estimated to be 72 million barrels. This, coupled with OPEC supply cut, would see near normalisation of [the] market and demand for storage would return to 2015 levels, even with the projected growth rates. Asian storage operators would face the challenge of reduction in occupancy levels and pressure on storage rental rates,’ he explains.

Gulf Petrochem is looking at opportunities for brownfield and greenfield acquisitions

the alternate bunker fuel (LNG) and consequent CAPEX to be incurred in adapting to LNG as bunker fuel in vessels; and 3) the possibility of high sulphur fuel oil getting blended with distillates to reduce sulphur content’. Also driving storage demand in Asia is China, according to trade data from Thomson Reuters Eikon. In March, around 50% of the 22.6 million barrels of crude sold from storage tanks in Singapore, Malaysia and Indonesia were shipped to China, which has seen an increase in demand across all oil products, except diesel. Platts, quoting data from Chinese state news agency Xinhua, says a significant proportion of China’s imports also flowed into storage. These include petrol, gasoil and jet fuel, and kerosene. Expected regulatory reforms, such as the possibility of allowing private investment in China’s oil and gas storage, could also fuel future support for the bulk liquid storage market. In addition, the government issued draft regulations in July for the oil storage industry, including licensing and minimum storage tank capacity. CHALLENGES FACING OPERATORS Despite an overall bullish outlook for the region, both Boer and Prabakaran believe that aside from securing energy supplies, there are a number of roadblocks facing terminal operators in the near future.

We still believe Asia will be the area of growth Sjoerd Boer, vice president commercial at Oiltanking Asia Pacific

‘One of the challenges terminals will face is the required flexibility to cope with the changing energy mix and the associated shifting product flows prompted by new regulatory guidelines (e.g. 2020 sulphur cap [by the IMO]) or ever-changing requirements from the end consumer,’ says Boer. Meanwhile, Prabakaran says with oil prices reaching equilibrium, the industry could see more oil traders selling their tank assets. ‘The demand for additional storage, which arose in 2015-16, drove trading majors like Glencore, Vitol and Gunvor to participate in storage assets. However, with the stabilisation of oil prices from early-2017, these companies have started selling their stakes in oil storage assets,’ he says. Prabakaran cites as examples Vitol’s acqui-

FUTURE INVESTMENT Investor sentiment in Asia, however, remains positive. Prabakaran says Gulf Petrochem continues to look at opportunities for both greenfield and brownfield acquisition of terminals, if they fit into the organisation’s strategic expansion plans. It is also examining offers from leading terminal companies for strategic tie-ups and partnerships. Of particular interest for Gulf Petrochem are countries, such as India, Sri Lanka, Malaysia and Indonesia. Prabakaran says opportunities in India have been driven by planned port infrastructure developments and enhanced capacity in coastal and inland refineries. Asked about their near- to long-term expansion plans, Boer says Oiltanking assesses multiple potential investment opportunities across the globe, either on a standalone basis, or in partnerships. ‘Any decisions and approach to such investments opportunities and portfolio enhancement will depend on a compilation of various strategic drivers,’ he says. ‘We still believe Asia will be the area of growth. Oiltanking continues to focus on its strategy of controlled growth and, as such, will remain interested in viable and solid growth opportunities in the region.’ As a testament to its confidence in Asia, Boer says Oiltanking signed a joint venture agreement with Jurong Port, to develop, own and operate a new liquid bulk terminal in Singapore. Jurong Port holds 60% of the shares in the JV, with the rest owned by Oiltanking. ‘The new liquid bulk terminal will support the increasing demand of storage needs in Singapore with its integration to Jurong Island, Asia’s petrochemical industry hub. This facility is also well positioned for synergy building and maximisation of operational efficiencies through the establishment of physical connectivity via pipelines. ‘By being connected to the petrochemical network on Jurong Island, this provides strategic benefits for prospective customers. The new terminal strengthens Oiltanking’s position in Singapore and enables the company to expand its overall operations within the island state,’ Boer adds.

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AUGUST/SEPTEMBER 2017 Volume 13 Issue No.4

CHEMICAL STORAGE SUPPLEMENT

CHANGING TRADE FLOWS BOOST MEDITERRANEAN HUB The Mediterranean area is flourishing as it positions to become a regional trade hub

CHEMICAL TRADE FLOWS: A GROWTH STORY The chemical industry is experiencing substantial growth

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CONTENTS & NEWS

CHEMICAL STORAGE CONTENTS

News Chemical storage news

Features

Chemical tank terminal update

03 Value added downstream logistics 04

Changing trade flows boost Mediterranean hub

Investing in flexible storage

Chemical trade flows: a growth storage

CHEMICAL NEWS Construction work progresses at LBC’s Botlek storage terminal LBC Tank Terminals’ project to triple the capacity of its storage terminal in Botlek, Rotterdam is on schedule. LBC Tank Terminals’ project to triple the capacity of its storage terminal in Botlek, Rotterdam is on schedule. Project ‘Rainbow’ involves tripling the current capacity of the facility as well as significantly improve its jetty and land infrastructure. Following the initial groundbreaking in February 2016, the operator commissioned the construction of 16 new stainless steel, heated and insulated chemical storage tanks with a capacity of 36,000 m3. This was done off site to reduce any potential safety and operational impacts within the existing facility. The new tanks we shipped to the terminal in Rotterdam at the end of November 2016 and installed. Following this, the facility experienced a 50% increase in its total capacity. Work is now underway to fill the recently constructed pipe racks with 20,000 meters of piping next to a new firefighting system. Building work is underway for a new centralised truck loading installation complete with six new weighbridges. Additionally, the jetty structure at the fruit harbour is being built, as is the armature for the jetty. In a statement, LBC says: ‘We are well underway to achieving our ambition. This project not only contributes to our strategic business model but is aligned with our vision to create a sustainable future where there is no such thing as a dangerous product, at least not when in our care.’

ATS starts operating new Indian storage tank terminal ATS has started operations at its new tank storage terminal in New Mangalore Port, India. Raftaar Terminals is the first tank terminal at the port to be constructed in stainless steel, with a capacity of 316L and a jetty pipeline making it suitable for all acids. It can also handle a wide range of petroleum products including naphtha, gas oil, motor spirit, para-xylene, methanol and petrochemicals. The facility has incorporated a green policy, with 33% of land dedicated to a green belt around the terminal. It also has LED lights, VDFs for power saving and solar energy for lighting systems and water heating.

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CHEMICAL HEADING l XXXXXX XXXXXX

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CHEMICAL TANK TERMINAL UPDATE

CHEMICAL TANK TERMINAL UPDATE Vopak Eurotank, Dow Sadara

Enterprise Products Partners, Navigator Holdings

Location:

Antwerp

Location:

Houston Ship Channel, Texas

Products:

11 different types of liquid chemicals

Products:

Ethylene

Capacity:

40,500 m

Capacity:

600 million pounds

Construction/ expansion/acquisition:

A total of 20 new storage tanks have been added to the terminal for Dow Sadara

Construction/ expansion/acquisition:

Comment:

Investments have been made in a new pipeline network for two deep-sea loading jetties

Enterprise will manage the construction, operations and commercial activities of the new marine export terminal

Comment:

The facilityâ&#x20AC;&#x2122;s pipeline system will be connected to multiple producers and consumers of ethylene on the US Gulf Coast

Odfjell

AltaGas, Vopak

Location:

Seabrook, Texas

Products:

Ethylene

Construction/ expansion/acquisition:

The basic engineering contract has been given to JGC America and is the last phase of engineering before the final investment decision

Comment:

The project follows the announcement of several new thane crackers as a result of the shale gas revolution

Location:

Prince Rupert, British Columbia

Products:

Propane

Capacity:

96,000 m3

Construction/ expansion/acquisition:

The Ridley Island export facility will be the first propane export facility off the west coast of Canada and is designed to ship 1.2 million tonnes of propane per annum

Completion:

First quarter of 2019

Comment:

Vopak will take a 30% interest in the facility, and is underpinned by long-term customer contracts

Saudi Aramco Location:

Pengerang, Malaysia

Products:

Petrochemicals

Construction/ expansion/acquisition:

The company has invested $7 billion for an ownership stake in the Petronas RAPID complex within the Pengerang Integrated Complex

Comment:

Saudi Aramco will supply most of the crude feedstock requirements of the refinery, with natural gas, power and other utilities supplied by Petronas

Oiltanking Location:

Port of Bandar Imam Khomeini, Iran

Products:

Petrochemicals

Capacity:

22,000 m3

Construction/ expansion/acquisition:

Oiltanking has expanded its investment in the facility, increasing its indirect stake from 35% to a majority share of 70%

Comment:

The facility is connected by pipelines to jetties of the special economic zone and comprises 18 tanks

Oiltanking Location:

Antwerp, Belgium

Products:

Butane

Capacity:

135,000 m3

Construction/ expansion/acquisition:

Oiltanking Antwerp Gas Terminal will double its capacity following an agreement with INEOS

Comment:

The butane tank will be the largest in Europe

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CHEMICAL PROFILE

l ARABIAN CHEMICAL TERMINALS

Value added downstream logistics A

thriving demand for specialty and niche chemicals in Saudi Arabia is fuelling Arabian Chemical Terminals’ plans to expand infrastructure at its Jubail facility. The facility in Jubail Commercial Park has recently completed an expansion project, which involved the addition of two tankpits with 13 stainless carbon and stainless steel tanks. The extra capacity was commissioned in the second quarter of 2017 along with a new berth. The growth of ACT’s Jubail facility comes on the back of high demand for specialty and niche chemicals in the region. The introduction of trade licenses to foreign manufactures has also opened the supply market to Saudi Arabia, meaning that new streams will be supplied and traded in the country. Existing customer feedback has been very positive to the expanded facility and new clients have also come on board, says Kasper Castricum, general manager at ACT, in an interview with Tank Storage Magazine. He says: ‘ACT focuses mainly on the Jubail area and aims to make ports outside of the Kingdom of Saudi Arabia redundant for the

With this wider range of activities, ACT and Suttons Arabia could really integrate value added logistics with their tanks, transport and breaking bulk for their customers

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

import of chemicals with containers. Now users can directly target Jubail with bulk streams that can be stored in our tanks of several different sizes. ‘We do have some tanks available for the spot market and new stream. We see a growing market in the region so we do expect to expand our facility again when authorities allow.’ On the back of this flourishing market, ACT, along with its joint venture partner Suttons Arabia, is building a new container freight station in Jubail Commercial Port, which is due to open at the end of August. Castricum explains that it is seeking to engage in other business streams and transport modes with this new station. ‘We see a growing demand to handle and export products in drums and therefore decided to invest in a drumming installation at ACT Jubail. ‘Suttons Arabia completed their design and feasibility for a larger value added logistic part in the Royal Commission allocated strip for logistic service providers. This 200,000 square meter plot will be utilised with several activities such as ISO cleaning, bagging and packaging lines, drumming equipment, storage of lade ISOs and an intermodal container depot connected to the new Saudi Arabia rail project that connects the complete eastern coastal industry. ‘With this wider range of activities, ACT and Suttons Arabia could really integrate value added logistics with their tanks, transport and breaking bulk for their customers.’ At ACT’s Yanbu facility in the Red Sea, a feasibility study is underway to modernise key infrastructure including loading systems with high accuracy metering and low utilisation rates. Castricum says that the outcome of this study is expected to be announced in 2018 following the disclosure of further industry expansion projects in the Red Sea coast region.

CHEMICAL PROFILE l PORT OF TARRAGONA

Previously an underestimated region for logistics flows, the Mediterranean area is flourishing as global flows position it to become a regional trade hub

Changing trade flows boost Mediterranean hub T

he Mediterranean region is looking to enhance its strategic importance as a key trading and storage hub for Europe. And the Port of Tarragona is spearheading a series of initiatives and developments to elevate the region’s importance in the wider web of global trade flows. New trade flows and markets have emerged onto the global energy landscape thanks to new refining capacity coming on stream in the Middle East and the unleashing

of Iran’s export sanctions, along with the continuing prominence of the shale oil revolution in the US. These new flows have unlocked significant potential in the Mediterranean region as more trade routes target the conduit and significantly reduce transit times for cargoes. As a result, executives at the Port of Tarragona are ensuring their market offering is as attractive as possible to capture more trade. In an interview with Tank Storage Magazine

Genoveva Climent, commercial director at the port, explains that storage operators have also been investing in their facilities by increasing capacities as well as improving processes. She says: ‘Historically, the Mediterranean area has not been part of general flows, however it is now becoming a more important trade route. ‘Trade from Africa is coming more into this region and as the flows from the US, Middle East and China are changing, there is now a big opportunity and we need to take advantage of our position and make the port a good opportunity to be part of this regional hub. ‘We are convinced there is a need for an alternative to Europe’s ARA region because of these changing flows and emerging markets, including Iran. All of this is positioning the Mediterranean to become a regional hub. ‘It is a big movement and we are keen to see how it will end. ‘The terminals in the port have been looking at these market dynamics and have been making investments in their infrastructure and in our chemical cluster. They are positioning their facilities not just to serve Spain’s national industry but also to serve North Africa and the Middle East.’ The port’s chemical wharf in particular has been a focal point of investment. More than €76 million was invested by the port in 2011 to expand its chemical wharf to 36 hectares in

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CHEMICAL PROFILE l PORT OF TARRAGONA

01 Signficant invesm ent has been made at the Port of Tarragona to maximise its potential within the Mediterranean 02 The region is becoming a more important route thanks to changing energy trade flows 03 Terminal operators at the port have been making investments to serve wider markets

response to growing demand. In 2015, Vopak Terquimsa invested in six new tanks along the wharf. Additionally, Tepsa is also embarking on adding 40,000 m3 of capacity in a three-phased construction project. The first phase is due to be operational by the second half of 2018. Additionally, EuroEnergo is adding infrastructure to start berth to berth operations and has already started to build manifolds and loading arms in the wharf in addition to new tanks. Climent explains that out of the 36 hectares

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

of land that was available when the wharf was expanded, only two remain. ‘While the chemical sector has been slow in the hinterland, in general we have a good feeling about how things are moving in the chemical sector. We have endured some challenges such as the continued need to cut costs but also invest in better infrastructure. ‘These challenges do remain and we need to continue to work together to try and reduce them.’ NEW OPPORTUNITIES Another advantage of these changing product flows is the opportunity for the port to offer new and more diverse services. Demand for bunkering services at the port has started to grow and as a result, it now offers bunkering to the fleet of tankers that use the port, which makes up 45% of vessels. ‘Until now it was not a main service offers because the sector preferred other ports to support bunker fuel. ‘It was strange we never knew why but that has since changed and now, because of more activity in the Mediterranean region, we have seen new interest in this and so we now offer bunkering services.’ Port executives have given approval to Peninsula Petroleum for physical bunker supply from the port.

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CHEMICAL PROFILE l TEPSA

Tepsa’s terminal in Tarragona, with the expansion area highlighted in red

Investing in flexible storage T

epsa’s four Spanish terminals have been flourishing over the past two years thanks to continued business and operations development. An average occupation level of between 92% and 94% accurately reflects the recovery of the Spanish economy. GDP has grown and continues to grow at an annual rate of 3%, meaning that Spain is leading the way among European economies. Tepsa is Spain’s number one company for the storage of chemical products, it being the only company able to offer this service in the four ports where the company operates, namely Barcelona, Bilbao, Tarragona and Valencia. This line of business is supplemented by the storage of oil, biofuel and food products, areas where we offer solutions tailored to customers’ needs. All this is possible thanks to the flexibility of Tepsa’s facilities and the speed to which the company responds to market demands. This speed comes as a result of the company’s experience in handling more than 200 different products as well as using its own in-house engineering department. This latter element means it can quickly design any

improvements and adaptations needed when the market has new requirements. As a result of the company’s healthy finances – with no external debt – it is able to make significant investments without long delays or external limitations. Tepsa’s MD Luis Sala says: ‘During the course of 2016 and the first half of 2017, there has been a really positive and encouraging trend in the development of business at Tepsa’s four Spanish terminals.’ For 2017, the company has more than €10 million worth of investments planned: 1. Maintenance investments that will enable all of its terminals to remain in perfect operational condition 2. Investments in operational improvements, automation, and the introduction of new technology (both hardware and software) 3. New basic infrastructure facilities, such as a train loading siding in UIC wide gauge set, which is due to be operational in September 2017 4. Modifications and improvements in its facilities to adapt them to new logistical customers requirements, with whom it has agreed medium and long-term contracts 5. The expansion of its terminal in Tarragona.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

The company’s expansion in Tarragona was driven primarily by its desire to continue supporting the flourishing Spanish chemical industry. Sala explains: ‘Whilst we were looking at the long-term future of the terminal, we were also confident in the growing logistical needs of the biggest chemical and petrochemical complex area in the Mediterranean, which is located nearby. ‘Tepsa has obtained a plot of land lying adjacent to our current terminal for this expansion.’ This new addition covers an area of 1.3 hectares and by combining operations with its current facilities, the company plans to expand capacity by up to 40,000 m3. The total investment in the project is close to €14 million, and it will be executed in phases, in parallel with the incremental increases in demand. The first phase will consist of the construction of six tanks, providing up to 15,000 m3 of storage. The stage that involves the design and obtaining of permits is progressing according to plan and the company should be starting groundwork in the final quarter of 2017. The new expansion is expected to be placed into service before the end of 2018.

CHEMICAL MARKET ANALYSIS l TRADE FLOWS

CHEMICAL TRADE FLOWS: A GROWTH STORY T

he global seaborne liquid chemical trade is expected to grow to 183 million metric tonnes (MMT) in 2017. This market is forecast to grow to 202 MMT by 2022. Such growth has kept chemical shipping and tank storage business growing in tandem. While the chemical industry has grown substantially, real GDP growth to world export growth multiplier indicates a ‘normalisation’ trend. Similarly, the GDP to liquid chemical export multiplier has been dropping to a single-digit over last 30 years. This study focuses on volume of basic chemicals and looks broadly at the global and regional markets for the seaborne liquid chemical trade rather than domestic production and consumption between 2004 and 2017. Demand and production shifts are covered by observing how importing and exporting countries have grown their shares of the respective pie. As volume grows, beneficiaries and their respective stakes (in volume) are also examined. China is also looked at for its exceptional power and impact. REDUCING GDP-TO-TRADE MULTIPLIER As world export growth reached a peak of 7.9% during the five year 1995-2000 period within a 37-year framework (1980-2017), seaborne liquid chemical export volume produced an 88% growth over the previous five year (1990-1995) period. However, since then, world export and liquid chemical export growth rates have been dropping in tandem. GDP-to-world export multiplier moved from 2.62 during the 1990-1995 period to just under 1.0 this year, clearly indicating a ‘normalisation’ trend from the hectic growth trajectory of the past periods. Similarly, a trend is observed in the GDP-toliquid chemical export multiplier as it moved from a high of 23 during 1995-2000 to 5.2 in 2010-2015. We estimate it to drop further to 3.6 in the current 2015-2020 period. This nor-

malisation trend is noteworthy as businesses may align their business plans accordingly. DEMAND & PRODUCTION SHIFTS

Demand shift Economic growth and market opportunities in China and other parts of Asia have increasingly moved value chains to the East. In China alone, import volumes almost tripled from about 16 MMT in 2004 to 45 MMT last year. China’s production capacity simply could not grow fast enough to meet its own domestic demand, necessitating these imports. The rest of Asia also clocked in an impressive 53% import growth in the same period, while their European and North American (NAFTA) counterparts grew at lower rates at 28% and 3% respectively. Production shift As demand shifted eastward, so did production. The most significant is the rise of feedstock-advantaged countries including those in the Middle East and Southeast Asia, ramping up their production capacities. Some of these are for their own domestic consumption while many of them are targeted for the nearby markets. For example, the Middle East,

with its production mainly export-bound, rose a staggering 164% from just over 12 MMT to almost 33 MMT last year. Asia’s (excluding China) export grew 86.6% from just under 26 MMT in 2004 to over 48 MMT in 2016, signifying enlarging production capacities that have shifted to near or where the markets are. WINNERS & THEIR STAKES Trade volume has grown substantially from 114 MMT in 2004 to 179 MMT in 2016. From a product perspective: the top five winners are Methanol, Paraxylene (PX), Sulphuric Acid, Mono-Ethylene Glycol (MEG) and Benzene. Despite already being the world’s largest PX producer, China PX imports increased 10 fold

Produced by Shipsfocus Intelligence

Volume (MMT) 35

2004

30 25

230.8% 63.5%

84.5%

15 86.9%

10 5 0 PX

BENZENE

MEG

METHANOL

2017F 183 MMT Other s 14%

METHANOL 16%

VAM ACRYLATES ACN ACETONE

SULPHURIC ACID

Significant growth in top five products

2004 114 MMT

METHANOL 17%

ACETONE ISOCYANATES HYDROCHLORIC ACID ETHANOL (DENATURED) PHENOL VAM SULPHURIC ACID 9%

ISOCYANATES PHENOL CYCLOHEXANE ETHANOL (UNDENATURED) ACETIC ACID 2% TOLUENE 2% EDC 2% PHOSPHORIC ACID 3% BENZENE PX 4% 6%

76.6%

Produced by Shipsfocus Intelligence

Other s 16%

2017F

CSS 8%

TOLUENE (TOL) 2% ACETIC ACID 2% EDC 2%

PX 10%

PHOSPHORIC ACID 3% ETHANOL (UNDENATURED) 4%

SM 8%

MTBE, ETBE, ETC. 6%

SULPHURIC ACID 9%

MTBE, ETBE, ETC. 5%

MEG 7% MEG 8%

BENZENE 5% SM 6%

CSS 8%

Liquid chemical trades grow to 183 million metric tonnes in 2017

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CHEMICAL MARKET ANALYSIS l TRADE FLOWS

from 2004 to 2016 while global imports grew 230%. This benefited producers from Korea, Japan, Taiwan; Southeast Asia; Middle East and even those from Europe and US. Demand and production shifts eastward also created a tremendous increase in short haul** vis-à-vis long haul seaborne trade. In 2016, of the 179 MMT volumes, about three-quarters were for short haul trade routes, benefiting the regional players. Unfortunately, from a chemical shipping perspective there appears to be a ‘disconnect’: as chemical tanker size has been growing larger, regional trades (short haul) require smaller vessels. From a price perspective, markets reward the regional suppliers as they respond quicker to demand and at lower cost of freight due to proximity. However, imbalances between front haul and (lack of) back haul trades will continue to be a challenge to freight optimisation, and thus smaller ‘regional within a region’ trades could develop further like intra-Northeast Asia, intra-Southeast Asia, etc.

5KT Easy Chemical Fr eight to NE Asia Freight (USD/MT) 140.00 120.00

Ex Rotterdam

Ex Houston

Ex Singapore

Ex South Korea

Ex Al-Jubail

Produced by Shipsfocus Intelligence

100.00 80.00 60.00 40.00 20.00 0.00

Freight advantage for nearby suppliers

CHINA POWER How much of this growth would still be here without China in the last 30 years? For example, China dominates in four out of five top import volume cargoes, and of these, China is already the world’s largest producer for four of these cargoes. Chinese public perceptions and objections have limited new plans for PX production to materialise since 2007. Therefore, PX has to be imported to feed expanding downstream PTA capacities. China now accounts for 77% China Import, Production and its share

Volume (MMT) 45

Produced by Shipsfocus Intelligence

76.9%

40 35

56.7%

30 25

43.4%

41.1%

36.2%

32.9% 26.2%

26.1%

21.7%

17.7%

36.5%

20.2%

8.4%

7.5% 1.4%

0 2004 2017F 1st METHANOL

2004 2017F 1st PX China Impor t

China dominates

2004 2017F 2nd MEG China Pr oduction

2004 2017F 1st

BENZENE

China share%

World Major Liquid Chemical Supply/Demand Gap Produced by Shipsfocus Intelligence World Major Liquid Chemicals Supply/Demand Gap

Unit: KT/year Produced by ShipsFocus Intelligence Unit: KT/YEAR

Unit: KT/year

North America 2017 2021 Methanol -1442 467 PX 767 59 MEG 1781 4977 SM 1422 1302 Benzene -922 -932

Methanol PX MEG SM Benzene

Europe 2017 -4417 864 277 -1299 -697

2021 -4302 389 -358 -1243 -55

ME Gulf 2017 Methanol 12491 PX 2607 MEG 5985 SM 2116 Benzene 433

2021 12755 6666 8329 1313 1022

ISC 2017 Methanol -2188 PX -892 MEG -2164 SM -966 Benzene 1010

NE Asia 2017 Methanol -13379 PX -8001 MEG -4480 SM -3074 Benzene 294 2021 -3228 469 -2399 -909 1325

SE Asia 2017 Methanol -492 PX 240 MEG 1171 SM 532 Benzene 194

2021 -15843 -10070 -3093 -3662 -3428 2021 -574 2076 1763 491 818

Northeast Asia leads in liquid chemical demand

of the world PX import, and is already the largest producer with 26% capacity share. Another example is Methanol: strong demand including from its Methanol-to-Olefins projects has driven China’s Methanol import share to the top at 36%, with itself being also world’s largest producer. POTENTIAL GAME-CHANGERS & POSSIBLE LIDS TO GROWTH Barring a recession in the US and Europe or a slowdown in China, it is expected that liquid chemical seaborne volumes will grow another 2% in 2018. Although expecting to see ‘more of the same’, the following potential gamechangers and possible lids to growth in some key areas should be considered. The US shale boom and accompanying waves of petrochemical projects could result in major increases in both US short haul but especially long haul trades. Since 2016, there has been an increase in the export of Methanol from the US into Europe and Asia. A possible dampener could be the new administration policies that are antithetical to free trade and globalisation. As a result, productions that depend on access to international markets could be harmed. Some countries in the Middle East like Saudi Arabia are in the throes of major economic restructuring, with plans to diversify their economies from reliance on oil including expanding downstream petrochemical productions. There will be significant export volume if Saudi Arabia is able to execute its planned Saudi Vision 2030, and increase its non-oil exports as a share of GDP to 50% from 16%. Post-sanctioned Iran may also become a big competitor to other Middle East producers if their huge planned capacities come true. Asia, and more specifically China and India, remain a bright spot for the liquid chemical seaborne trade. Two possible developments could accelerate this. Firstly, domestic over-capacity drives Chinese companies to consolidate and cut

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

down inefficient productions and expand globally. For better cost advantages as well as other reasons, Chinese chemical companies have already started setting up production outside of China, like in Southeast Asia. Even if such capacity simply replaces existing domestic capacity, it certainly adds to the seaborne trade. Secondly, though a fraction of its import, China’s export is set to continue growing faster than its import.

REFERENCES * For each of the major bulk chemical cargoes, ShipsFocus Intelligence aggregated production capacity by region, as well as the production capacity of major downstream derivative chemicals and their uses. By making assumptions for utilization rates and conversion ratios for each derivative, we estimated the existing structural deficit or surplus for each bulk chemical. ** Short-Haul trade is defined as trade of two countries that is ‘intra-regional’ while that for a long-haul trade is ‘inter-regional’. Five key regions are: 1) Asia, including the Middle East 2) Europe 3) North America (NAFTA) 4) South America 5) Australia-New Zealand (ANZ)

FOR MORE INFORMATION This article was written by Chye Poh Chua, CEO of ShipsFocus, which, as a chemical shipping specialist, provides strategy, research and technology as solutions for growth-focused organisations. www.shipsfocus.com.

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TECHNICAL NEWS

All the latest terminal technical news from around the globe

TBG acquires DTN from Schneider Electric

HIMA announces Servelec Controls as systems integration partner

ATBG has bought DTN, a digital information services company, from Schneider Electric for $900 million.

Servelec Controls has become an approved systems integration partner for HIMA, a specialist for safety-related automation solutions.

BG says that following this acquisition, it will ‘fully reinstate the powerhouse DTN brand that has been known and trusted since 1984, and focus on growing the business in both the domestic and international markets’. DTN provides insight and analysis and decision-support solutions to more than 80,000 subscribers globally in agriculture, oil and gas, trading and weather-sensitive industries. Through DTN’s suite of products, customers receive actionable market information, weather, news and analysis via a SaaS platform. ‘The acquisition of DTN is very important for TBG as we have a deep understanding of the SaaS (software as a service) business with decades of experience supporting such solutions,’ says DTN executive chairman Jerre Stead. ‘We are fully committed to the DTN business over the long term and our plan is to facilitate DTN’s strategic and commercial expansion around the globe.’ DTN president Ron Sznaider says: ‘TBG provides strong and stable ownership that offers unmatched long-term investment and commitment to the DTN business. With this support, we intend to deliver new world-class solutions to the market to drive our domestic growth and international expansion plans, and to further enhance the DTN brand.’ The company’s weather services business serves customers in energy, aviation, sports and recreation, and transportation to mitigate weather risk via best-in-class weather forecast accuracy and decision support tools. The trading business offers configurable tools to help customers analyse and make informed trading decisions in futures and physical commodity markets. DTN’s refined fuels business connects the downstream oil and gas supply chain as the digital hub for all supply chain participants enabling operational efficiencies and improved profitability.

Servelec Controls is an independent integrator of mission critical control and safety systems. The company’s experienced and functional safety-accredited engineers have been installing HIMA solutions for many years. This experience makes Servelec Controls the smart choice as the manufacturer’s first oil and gas-focused approved integration partner in the UK. Sébastien Lachaise, HIMA’s UK and Ireland sales manager, says: ‘The world’s largest companies in the process and energy industries trust HIMA safety systems, in fact 19 of the largest 20 oil and gas companies put their trust in HIMA for safety. With Servelec Controls, HIMA has a partner that understands our safety products and has the expertise to design, commission and support HIMA-based systems.’ As an independent integrator, Servelec Controls’ engineers are experienced at developing and integrating mission-critical systems. Following the signing of the agreement, Andrew Mills, Managing Director at Servelec Controls (Oil and Gas) said: “Servelec Controls enjoys strong links with all the major OEMs across the sectors we serve. The solutions we design to solve automation problems will always include the most efficient and effective technology to meet the needs of our customers.’ Rotary Logo (Master Brand)

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ROTARY is one of the region’s leading oil and gas infrastructure services companies with extensive international experience offering fully integrated engineering design, procurement, construction (EPC) and maintenance services to the oil and gas, petroleum and petrochemical industries. • EPC for bulk liquid storage terminals • EPC for offsite & utilities • Front-end engineering design (FEED) & detailed engineering • Electrical & instrumentation works • Mechanical works including piping & equipment installation • Maintenance of process plants & facilities • Modules fabrication Rotary Engineering Limited HQ: 17 Tuas Avenue 20 Singapore 638828 Tel: (65)6866 0800 • Fax: (65)6866 0999 • Email: bdd@rotaryeng.com.sg

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

www.rotaryeng.com.sg

TECHNICAL NEWS

Industrial Hoses & Dry Break Couplings

Breakaway & Emergency Release Couplings

Tank Truck Equipment

Loading Arms

Fall Prevention Equipment

Grounding & Earthing Devices

Instrumentation & Flow Control

Integrated Systems

Vapour Recovery & Combustion

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL NEWS

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL NEWS

Emerson launches new thief hatch to reduce emissions Emerson Automation Solutions has brought the Enardo ES-665 spring-loaded thief hatch to the market for low-pressure storage tanks.

o address the challenge of stricter emissions regulations the ES-665 has been engineered with increased sealing forces, as well as with a tight and consistent fit of the sealing surfaces. The resulting emissions performance of the Enardo ES-665 thief hatch is an industry-leading 0.10 SCFH (standard cubic feet/hour) at 90 percent of setpoint. The Enardo ES-665, along with Emerson’s other tight-sealing storage tank solutions, also helps conserve tank contents. The ES-665 provides tank access as

well as pressure and vacuum relief to accommodate tank pressure changes that occur under normal conditions. The ES-665 also limits hatch emissions when pressure or vacuum relief is not required. In addition to its ultra-tight emissions performance, the ES-665 includes an available centre assembly for improved performance of previously installed models, multiple relief settings and material options for application flexibility, and a latching and lockable lid for added security and safety.

Mesa Industries acquires WG Seals Mesa Industries has acquired WG Seals, a supplier of custom designed floating roof tank seals and rim mounted foam dams. WG Seals will operate as its own company under the umbrella of Mesa Industries, but will complement the existing Mesa ETP division and its current products. The transaction represents a significant opportunity to Mesa’s strategic focus on growing domestic and international product offerings. Brian Karns, COO of Mesa Industries, says: ‘This acquisitions exemplifies a complementary business that will strengthen both Mesa ETP and WG Seals for products, engineering and customer service. ‘Our team will collaborate among divisions to fully utilise the strengths of both companies that will, in turn, help our customers with higher quality products.’

WHERE THE INDUSTRY TURNS FOR PRECISE CONTROL Achieve precise control over every aspect of your tank storage system. MODEL 5200 The Model 5200 is a pilot operated Pressure/Vacuum Vent engineered to vent the tank vapor away to a header system and to relieve vacuum pressure within the tank.

MODEL 6A00 The Model 6A00 Flame Arrestor is one of the full line of arrestors that allows vapor to pass through so tank vessels can breathe while preventing propagation of a flame from the exposed side to the protected side.

MODEL 1078 The Model 1078 vacu-gard blanketing valve is a pilot operated blanketing valve intended for installation on top of medium to large storage tanks.

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MODEL 8900 Series 8900 emergency relief vents available in hinged or top-guided design, for pressure only or pressure and vacuum relief.

MODEL 2199 Model 2199 pressure/ vacuum relief hatch provides emergency pressure relief beyond that furnished by the normal pressure vent for atmospheric and low-pressure tanks. It also provides convenient access for tank cleaning, inspection and repair.

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TECHNICAL NEWS

The best service for the best products Coflexip速 Products and Solutions

Through its Coflexip速 Products and Solutions, TechnipFMC is the world leader in production of high-quality flexible pipes for the refining and petrochemical industry. Coflexip速 maintenance-free flexible steel pipe systems are the best option for drain systems, TECHNIP rim fire protection systems, skimmer lines, and suction lines for floating roof storage tanks. We offer: Almost 40 years of field-proven experience Unique pipe structure with high chemical resistance Repeatable lay pattern that does not interfere with equipment Innovative skimmer and foam system for fixed roof tanks Simplified design: no ballasting or other compensation devices needed Dedicated engineering teams to provide customized solutions Worldwide after-sales service

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TECHNICAL NEWS

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL NEWS

New storage tanks for Saudi Aramco expansion project CB&I has been awarded a contract by Técnicas Reunidas for new product storage tanks.

TECHNICAL NEWS

Energy efficiency thanks to modern pump technology

The tanks will be part of a clean fuels expansion project at Saudi Aramco’s refinery in Ras Tanura, Saudi Arabia. CB&I’s scope includes the engineering, procurement, fabrication and construction of nine flat bottom tanks, as well as modifications to numerous existing tanks, all of which were previously supplied by CB&I. In support of Saudi Aramco’s In-kingdom total value add program, CB&I will provide all fabrication and project management. The company has provided nearly all of the product storage at the facility since 1938.

Lift-Off pipe supports a success with pipeline company Lift-Off Pipe Supports’ range of pipe supports, with their unique conductivity resistance, are provide popular within the pipeline industry. The company has recently designed, manufactured and supplied its 6” and 8” Lift off rest (LOR) range of pipe supports to a well-known pipeline operating company. The client was impressed with the supports provides as they do not fall off or get displaced during line expansion or contraction and only take 15 minutes to install. Additionally, the support cannot slide off the beam as a result of the company’s patented design method. No drilling or mechanical fixing method is required, besides lifting the pipe off the beam and no hot work is needed. Uniquely, the LOR has a very high conductivity resistance, to ensure that the pipelines and associated equipment is adequately grounded, which is a major cause of cathodic protection failures. Additionally, the support barrier, or width, only needs to be approximately half of the pipe diameter and addresses the contact point between the support beam and the pipe. Lift-Off Pipe Supports supplied 6” and 8” LOR’s to suit 12,” 16,” 20” and 24” piping. The company supplies the LOR to suit structural sections from 1” to 16” wide flange widths to suite piping up to 48.”

Efficient pump technology from NETZSCH You save energy thanks to our latest pump technology and clever design. The reduced energy requirement in parallel to increased pump performance lowers the power consumption and so preserves our environment in a sustainable way. Our pumps stand for total environmental awareness.

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL NEWS

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL NEWS

Rosen’s crack detection receives TÜV certification Rosen’s EMAT inspection tools have received certification by TÜV Systems Nord for Europe. The company’s UT inspection fleet has been certified for a while and the EMAT certification was recently completed. Like UT, EMAT is used for crack detection in gas lines. Early detection of potential cracks in gas pipelines is an important factor in ensuring the safe operation of such pipelines. ‘We are now the first and only company in all of Europe that can offer its clients TÜV-certified inspection tools,’ says Thomas Beuker, director advanced pipeline diagnostics for Rosen. The independent certification by the TÜV Nord Group confirms the high quality of these inspection tools that completely fulfill the requirements set forth in TÜV memorandum 1069. This in turn gives operators of industrial systems the certainty that their pipelines are being inspected reliably. The tools were qualified by way of a variety of different pull tests, from which the gathered data were compared to reference measurement data, as well as the pertinent documentation. To this end ‘EMAT pigs’ in various diameters, from 16” to 48”, were subjected to rigorous testing at the company’s largest location in Lingen.

GLOBAL CERTIFICATION

EEMUA launches latest edition of 159 publication EEMUA has launched edition 5 of EEMUA Publication 159, Above ground flat bottomed storage tanks: guide to inspection, maintenance and repair. The publication was launched at a day-long seminar in the UK, which provided a first look at the guide on aboveground vertical cylindrical, steel storage tanks. A number of chapters have been significantly updated to include new content, including chapters on corrosion of tanks, general inspection techniques and interpretation of inspection data, floating roofs and probabilistic preventive maintenance. Additionally, there are new chapters on mothballing, turn-around procedures, aluminium domes and operation at elevated temperatures.

Electric actuators for all types of industrial valves Reliable and long-term service. AUMA offers a comprehensive portfolio. ■ Customised solutions thanks to the modular scheme ■ Corrosion protection with offshore certification ■ Temperatures down to –60 °C ■ Integration into all conventional distributed control systems ■ Worldwide certifications and vendor approvals ■ Service worldwide Discover our solutions for the oil and gas industry www.auma.com

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TECHNICAL FEATURE l INSPECTION

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

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l INSPECTION

IMPROVING TANK LONGEVITY WITH INSPECTIONS Operators will benefit from a longer operating life & peace of mind with a thorough inspection regime

ength of service life and low maintenance are key factors in making tank storage purchasing decisions. The life expectancy of a storage tank is hugely important because it affects the period of service, the likely maintenance cost and, finally, the ultimate salvage value. An effective asset management scheme that maximises in-service life by maintaining assets in the best possible condition to achieve optimum utilisation is therefore money well spent. But how can this be achieved when even an inspection regime carried out to the letter of the current regulations may not be enough? Teeside-based Axiom Engineering Associates has many years of experience in asset management, testing and storage tank inspection. It also specialises in forensic failure analysis – the process of collecting and analysing data to determine the cause of a failure and, more importantly, how to prevent it happening again.

of the tank, even those parts that may not be covered by the EEMUA guidelines such as non-standard repairs or modifications.’ And that’s because a tank inspection may not happen again for anything up to ten years – or even longer. ‘When we examine a tank, we aren’t just looking at the condition it is in now, we are asking ourselves what it will be like in ten or 12 years’ time because that’s the length of time we are signing it off for. In some cases, the inspection interval may be as long as 20 years – and a lot can happen during that time - so we pay close attention to predicted corrosion rates.’ The process begins even before the company’s experts arrive on site with a thorough review of a tank’s design, its history, maintenance, repairs and any modifications. The focus of this is to pinpoint anything unusual which may require additional inspection and/or testing.

ENHANCED INSPECTION

Visual inspection isn’t enough. A tank can corrode through from the inside out, so the exterior can look fine but a tank can be dangerously thin in places. Similarly, tank bottoms can be susceptible from groundwater penetration. Storage tank inspection guidelines are well established, but since the Buncefield explosion 12 years ago, the issue of safety has come to the fore. The EEMUA 159 publication offers guidance on the inspection and maintenance of tanks built to British standards for the storage of high hazard liquids, however Adam Potter, Axiom’s head of risk-based inspection and asset management, says things aren’t so clear cut when a tank deviates from a specific tank design code. He says: ‘If a tank is designed and built to BS2654 (the former UK specification for vertical steel welded non-refrigerated storage tanks with butt-welded shells, which are widely used in the petrochemical industry), or API 650, we know which requirements it meets and consequently what to look for. However, we dread reading the phrase ‘generally in accordance with BS2654’ because what that really means is ‘doesn’t meet BS2654’ and from then on it pays to proceed with caution.’ Inspecting a large storage tank is an expensive business. The tank must be drained, any remaining content reprocessed and the interior cleaned out before an internal inspection can begin. This can take up to a week or more. Safe work permits are also needed and must be complied with. ‘The actual cost of the inspection itself is often less than the preparation, especially when you factor in the downtime – the length of time a tank is out of service – so it’s absolutely vital to get the most out of it,’ says Potter. ‘It pays to be thorough and to scrutinise every aspect

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

Axiom’s inspection teams use the spider down the side of a tank to carry out NDT in difficult to reach areas

TECHNICAL FEATURE l INSPECTION

‘The wide-angle lenses used by many of these cameras distorts the image too much to make it reliable. Where we do use remote cameras, we shoot in 4k ultra-high resolution; at least at that quality we can take image grabs from the footage and compare the stills.’

HIDDEN PROBLEMS

Inspection teams have to be thorough as sometimesa tank may not be inspected for another decade

In some cases, an inspector may call on the expertise of one of Axiom’s mechanical and materials engineers for additional guidance in specifying what work should be carried out. At the end of this process the team will have an inspection plan to work through when they arrive on site. Depending on the size of the tank, a team can consist of an inspector and five or six technicians. As the floors in atmospheric storage tanks are susceptible to both internal and external corrosion, Axiom carries out a magnetic flux leakage floor scan to pinpoint any problem areas. This is usually followed by ultrasonic (UT) thickness testing which can be examined in real-time on the operator’s equipment. The inspection pays close attention to safety critical zones, such as the annular plate to shell junction, which has a high stress load where it joins the shell to the bottom plates. The team will also check the bottom and first strake welds for signs of corrosion. Weld seams need to comply with ‘as built’ standards and, depending on the results, Axiom’s team may use a mobile scaffold to examine the seams on higher strakes. In addition, it is necessary to measure the wall thickness at several points along a tank shell’s contour, usually by remote inspection equipment using an appropriate non-destructive testing technique. Axiom uses a device called the ‘spider’. The spider can effectively walk around a tank taking measurements. The results are downloaded to a computer and added to the inspection report. If a reduction in wall thickness is observed, the frequency of testing will usually be bumped up. More regular inspections can act as an early warning of impending problems. The inspection report also covers the roof, lean, any signs of bulging in the floor, settlement and condition of the earth. Finally, where the tank design or construction deviates from the original code, the risks to the integrity will be evaluated and this may require fitness for purpose work or perhaps a reduction in inspection interval. The owner can then be assured that all tank components have been considered during the inspection. However, Potter cautions: ‘What about non-standard tanks? What happens if a piece of equipment doesn’t meet the standard in any way? We have seen examples of tanks built to BS799, a code specifically for oil storage, used with much more volatile substances.’ EEMUA 159 guidelines do not cover non-standard tanks, such as rectangular storage tanks which are becoming more common because they are easier to fabricate and cheaper to buy (EEMUA does have such guidance in the pipeline). ‘In these cases, the normal inspection standards may no longer be appropriate. It’s up to the expertise of the inspection team to ensure they have done a thorough and proper job.’ Depending on the shape and size of a non-standard tank, Axiom’s experts may need to use unmanned aerial vehicles or high-definition video cameras mounted on extensions to conduct a thorough examination. ‘Drones and other remote visual inspection methods are useful tools to have, but whenever possible we prefer to conduct a survey manually. Nothing beats the human eye.’

Storage tanks have long service lives and it isn’t unusual for them to be sold on and even moved from site to site. In this way, some companies have found they have taken on a tank with hidden problems. Worryingly, Axiom has seen cases where a tank apparently given a clean bill of health is dangerously unsafe. In one instance, a tank was found to be leaking. The tank had been taken apart and the two parts then welded back together. Outwardly, it looked fine but structurally it was an accident just waiting to happen. Potter explains: ‘It had been reconstructed using methods that would have never met even sound engineering practice, let alone an industry recognised code. Unfortunately, the owner had been ill-advised in the past and had genuinely believed the work was of good quality.’ Although the tank operation was initially leak-free, it didn’t stay that way for long. Subsequent filling and emptying cycles had caused the floor to flex, leading to a leak in one of the welds. ‘This illustrates why it is important to either follow a recognised code-compliant repair method or have repairs or modifications designed correctly,’ says Potter. In another example of a botched tank repair, Axiom discovered that instead of replacing the floor of a tank by cutting the shell, laying a new foundation and installing a new floor above the old one, a contractor had decided to save money by laying floor plates directly over all the existing floor and simply welding them together. When the tank re-entered service the base of the shell weld repair cracked. ‘Looking at a cross section of the floor, you can see the additional floor plate on the left above the original floor. You can also see a big crack on the left and a smaller one on the right. There’s about 1-2mm of material left holding several thousand tonnes of diesel back from an unsuspecting world. ‘If they had followed the code this would never have been attempted. Instead they decided to opt for what seemed like a cheap and easy repair. The result could have been disastrous.’ When it comes to health and safety, the process industry cannot be too careful. Potter concludes: ‘A rigorous maintenance and testing regime will pay for itself in a longer operating life, less downtime and peace-of-mind. ‘It’s important to understand the risks throughout the equipment’s life before conducting inspection, modifications or repairs.’ FOR MORE INFORMATION This article was written by Axiom Engineering Associates. info@ax-ea.co.uk, www.ax-ea.co.uk.

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l TANK MONITORING

A WIRELESS APPROACH TO TANK LEVEL MONITORING

ank level monitoring is a critical operation within the oil and gas, chemical, and refinery markets. It addresses the need to maintain inventory levels, protect against overflow, and ensure accurate process operations. In the past, obtaining tank level data was a manual and laborious task, often prone to error. Today, automated systems transmit tank level and temperature data from sensors to a remote control center. While wired tank level monitoring systems have been around for some time, the unique attributes of oil and gas operations, especially in hazardous areas, prove challenging to them. Cabling requirements, environmental conditions, multiple sensing requirements, costs, distance, and topography can all present problems. Wireless remote sensing systems are becoming more prevalent in tank level applications as they offer substantial operating and cost advantages over wired systems.

WIRELESS SYSTEMS REDUCE INSTALLATION AND MAINTENANCE COSTS

Wired tank level monitoring solutions can be expensive to implement and maintain, especially when covering large areas. As the distance between monitored assets can range from a modest 20-50 yards or extend to 1,000+ yards, installed cable costs can run $10 to $20 per feet (and more if trenching is required). A comparable wireless system can cost just a few hundred dollars per measured point, depending on vendor and application specifications. Powered by battery, solar, local power, or a power-scavenging device, wireless systems have no conduit requirements, eliminating the need for trenching. In addition, a wireless tank level monitoring system can be configured and tested in the shop, not on the back of a pickup truck in the field as with a wired system. Travel time for installers can be significant. It is not unusual for an electrician to travel more than two hours to reach a work site and for an installation

to take several days to weeks. Typically, the installation of a wireless tank level monitoring system requires 50% to 75% less on-site labour. If a wired sensor control system needs to be reconfigured or repaired, it can require new cable, involving trenching, hardware and labour. When removing sensors for periodic maintenance, wires connecting the units can be damaged. Should a wired system fail due to cut wires or another adverse condition, repair can take a long time to find and fix, resulting in sub-par operations or failures until the instrumentation is back online. A wireless telemetry system is scalable without adding new hardware. After initial installation, wireless systems can easily be retrofit by adding new wireless instruments to meet changing and expanding requirements. After removing sensors for maintenance, they easily reattach without interference with wires.

OPERATE IN DIFFERENT TERRAINS

Wired sensor control systems often canâ&#x20AC;&#x2122;t, realistically, be run on property not owned by the production company. Roads, cemeteries, rivers, buildings, or other structures all limit the feasibility of wired connectivity. The industrial transceiver nodes of a wireless remote monitoring system (see graph 1) provide robust transmission of data up to three miles in the unlicensed ISM bands that sustain signal strength through

terrain, structures, or weather. Even when operating in hostile and dangerous environments, a wireless remote sensing system can operate unattended for years without being affected by environmental conditions such as snow, rain, dust storms and ice. A secondary benefit, particularly in outdoor applications, is the reduced risk of lightning damage. While nothing survives a direct hit, wireless monitoring systems are relatively compact and can better withstand the rapid changes in electric fields when lightning strikes. In addition, since there are no wires, a worst case scenario is the loss of a single asset, not an entire wired system.

SENSOR AGNOSTIC

In tank level monitoring, the contained materials as well as monitoring requirements indicate the best sensing technology for the application. In some applications, various parameters such as level, temperature, pressure, and flow are monitored. Sensor selection is, ultimately, driven by the environment, desired accuracy, cost and the process parameter being monitored. In using multiple sensors to monitor various parameters, a wired sensor control system must wire each sensor back to the controller and connect it via an interface port. Large wired systems require a significant interface panel with different interface types. Wireless remote monitoring systems with an open architecture allow users to integrate

Graph 1: SignalFireâ&#x20AC;&#x2122;s remote sensing system consists of remote nodes that wirelessly power and extract data from sensors for transmission to a gateway that links to the internet and back-end servers in bringing tank level data to a control center or PC

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l TANK MONITORING

many types of sensors to monitor assets. As a result, a variety of sensors can be added or subtracted as needed to measure parameters such as pressure, temperature, level, and flow. Users can choose the best sensor for each application and bring all that data from different sensors to a single point with a single data interface (often Modbus). Wireless connectivity, if used correctly, will solve the issue of mixing multiple sensor interface types and allow the different data formats to work with each other. Operators rarely want to use sensors for all required measurements from a single sensor manufacturer. Consequently, the network connecting all these sensors will need to interface with a variety of sensor types with various sensor interfaces. Standard sensor interfaces include 4-20mA, 1-5 Volt, Modbus, HART, digital, pulse, thermocouple, and SDI-12. Depending on a vendor, a wireless sensor control system can connect different sensor types with different interfaces together, allowing you to choose the sensor that best solves your application problem. More cost effective and versatile than traditional manual gauges and wired instrumentation, wireless remote sensing systems meet different challenges that wired monitoring systems just can’t address. For ultimate effec-

A SignalFire Sentinel HART wireless node connected to a guided wave radar sensor for tank level monitoring

tiveness in tank level monitoring applications, wireless systems must meet stringent safety standards. Off-the-shelf wireless solutions are not feasible due to the need to adhere to strict safety standards. Wireless remote sensing systems operating in hazardous areas require specialised circuit design or specialised enclosures. Even with the added cost and complexity of meeting these requirements, the

economic advantages of these wireless tank level monitoring systems can be compelling.

FOR MORE INFORMATION This article was written by Scott Keller, founder, CEO, CTO, SignalFire Wireless Telemetry. www.signal-fire.com

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TECHNICAL FEATURE l DOMES

THE EVOLUTION OF DOME DESIGN T

he history of dome design dates back thousands of years and has undergone significant evolution from stone, bricks and cement to steel, timber and aluminium as space-framing, lattice

vaults.

EARLY WORKS

The design and execution of domes dates back more than 2,000 years and historical evidence of dome roofs still exists today, for example, the Pantheon in Rome, Italy. This particular structure advanced the prototype of all dome structures used for either architectural or industrial applications. This structure set out the foundations for design basics in terms of form-finding methods as well as optimal material allocation. Planetarium Zeiss in Jena, Germany

This method has been used repeatedly, and several domes have been built according to this methodology, a rigid composite-dome-shell. It is known as the ‘Zeiss-Dywidag-Process’ for these ‘shotcrete’-shells. Fuller pursued a more daring concept several years later. His most famous dome is still known as ‘Biosphère’ built for the ‘Expo 67’ in Montreal, Canada in 1967. Both Fuller and Bauersfeld provided feasibility evidence for these large-scale dome structures to highlight their economic benefits. They can be pre-fabricated in precision workshops and then delivered to sites. Picture caption to come

INDUSTRIAL SCALE

The Pantheon design has been the archetype for all dome designers since its inception. For modern structures, that benefit from better performing materials, its size has not only been matched – but exceeded. There has been a paradigm shift in the space-framework of a dome in steel, timber and aluminium. Two names of great importance to the evolution of dome structure are Walter Bauersfeld from Germany and Richard Buckminster Fuller from the US. Bauersfeld initiated and conducted a dome project for a planetarium in the city of Jena, Germany. This dome is very unusual in its design. It is a narrow-meshed, steel-lattice dome in order to maintain a perfect shape. Its steel structure has been assembled in an almost perfect shape comprising of the reinforcing bar for the next phase of execution - an alternating, sequential method of setting formwork and casting the concrete to.

PROBLEMS WITH CUSTOMISING TO USUAL BUILDING STRUCTURES

One of the most remarkable achievements of these structures is the sound interpretation of the spherical geometry to functional design tasks. Both Fuller and Bauersfeld found practical solutions to translate this interpretation into effective construction design in the days before computers and 3D tools. Early solutions comprised a so-called ‘Icosahedron’, a quasi-sphere where its spherical surface is substituted by 20 planes. These planes need to fulfil stringent conditions: (1) All are equal in size (2) All are equally distant to sphere centre (3) All are axially symmetric (to each other) (4) A total of 20 such planes are comprised There is only one shape that meets these requirements: the equilateral triangle. However the latest insight in this arena comes from ancient philosopher Plato. He found 5 so-called platonic solids: (1) Tetrahedron ‘tetra-pack’ (2) Cube

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l DOMES

Platonic solids

(3) Octohedron (4) Dodecahedron ‘football’ (5) Icosahedron. Plato finished his studies along these five regular solids. Two major aspects are intrinsic to these five solids: numbers 1, 3 and 5 are comprised of identical facets, the equilateral triangle, while number 2 is comprised of squares and number 4 is of a pentagon. Plato’s work has since inspired others to find more shapes in regular solids. Hundreds of forms are now known. Recently, US mathematician Norman Johnson has categorised and catalogues all these solids, and in the process found many more. However, it must be noted that Plato’s five classical solids totally match the conditions of an Icosahedron. All the others are derivatives or deviations from this. But they all enclose a spherical space by defecting it in a regular way, and all of them comply with an easy counting-criteria: Qtyvertices – Qtyedges + Qtyfaces = 2 This simple test is passed by all of them. The Swiss mathematician Leonhard Euler discovered this ingenious peculiarity. Despite in-depth studies, all these findings remained unusual objects far apart from any effective, large-scale applications. Proficiency has been gained by occupational groups in the field of diamond grinding. There it has become a highly refined, profound skill.

INTEGRAL DESIGN AND PRODUCTION

However, unsolved problems persist as construction designer’s ambitions were heading towards dome structures. In contrast to these solids, a dome is hollow and has to be conditioned to substructures. For a dome of desirable size (ø >= 10m up to 100m or more), it is first necessity to subdivide the basic shape by defecting it to facets in order to obtain reasonable proponent sizes. The second problem is how to convert these hemi-spheres to an ordinary substructure that is an even plain or similar support situation. Both problem are tied together and need a combined solution. A closer look, for example, to an icosahedron, reveals all edges are made up of short sections (chords) of a defining great circle. That great circle has an identical radius as the defining sphere itself, and so is defined by three points: centre, and both vertices of that section. If a segment is prolonged it would establish a full great circle or an equator. However, a lot of equators exist and they do cross each other in rectangles. So a major engineering task is defined by these problems: subdivision of the facets along the ever defining sphere and adjust them at an even plain at the confluence points of the substructure and compensate its characteristic ‘serrated’ baseline. The result of such basic engineering is a narrow-meshed, axially symmetric system of points. These points represent all nodes of the dome and they are the vertices of structural members or main trusses. Icosahedron Hemisphere

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

That data is then to be re-used for designing cladding elements because these elements are also the result this Vacono dome complex geometry. They must be obtained within this design process. A major advantage of Vacono’s dome designs are that they are an enhanced concept that is departed from classical design concepts. (1) There is no strict basic forms (2) They have horizontally laminated subdivisions Owing to these two characteristics, the previously mentioned problems are reduced to a minimum. This means that these type of domes can be designed for a variety of different applications.

COMPLEX DESIGN CONSIDERATIONS: STATIC AND STABILITY

Aside from these geometrical considerations, the structural analysis is also quite challenging. The crucial facts are: (1) Domes of a comparatively less span are found being stable (2) Domes of a comparatively greater span are also stable, if arch rise is sufficient. What is most important is preventing it from collapsing downward in peripheral sections. (3) The summit of domes are least strained than all dome sections. A central opening can be achieved, if it is of circular shape, also axially symmetric and its rim is stable against buckling behaviour. (4) Domes shall ever be axially symmetrical and develop best load capacity if loads also act symmetrical. (5) The vaults of a dome design and barrel design are of totally different characteristics and may not be transposed or compared. These findings are derived from solid structures of stone and masonry, but do also apply to design processes of space-frame lightweight structures as well. The denotation of ‘comparatively less span’ needs to be examined in greater detail and there is a formula in API 650. This formula has been established in order to calculate numerical stability and rigidity along that so-called ‘snap-through’-criteria. It defines a maximum live load to impose onto a dome as result of its internal composition. Test passes if this theoretical max live load is greater than the extent of the demanded live load as per specification or local building codes.

with

G.4.1.3 ‘Allowable Buckling Pressure’ pa 1.6 * E * √ (I * A) pa = _________________ L * R² * SF

E – Modulus for Elasticity (Young’s Modulus) I – Moment of Inertia of truss A – Section Area of truss L – Truss length (average) R – Spherical Radius SF – Safety Factor (=1.65) A.m. formula implies several presumptions that curtail confident results: parameters I & A, moment of inertia and section area of girders, are not constantly allocated in usual and economical design process because different types of girders are now state-of-the-art. That is a major drawback and therefore this formula must be limited to doing some independent checks in recurrence, not for basic design tasks. Also of note, the authors of API 650 recommend in a conclusive footnote: ‘Alternatively pa shall be determined by a non- linear finite elements analysis with a safety- factor of 1.65’

TECHNICAL FEATURE l DOMES

This recommendation has been anticipated at Vacono and has been being applied for 20 years, using non-linear commercial finite elements analyses software solutions (FEA). Internally, these software solutions are developed along a stringent semi-probabilistic safety concept also known as LRFD (load resistance factored design). These factors reflect some probability of coincidence in various types of action. For questions around ‘maximum wind velocity’, meaning a tropical storm, would such an action realistically act together to ‘partial vacuum’, a result of an emptying operation? Such exclusions are being done semi-probabilistically and semi-automatically by the Eurocodes regulations: - EN 1991 (Action on structures) - EN 1993 (Steel) - EN 1999 (Aluminium) These regulations are adapted by FEA-software developers (FRAP by PCAE www.pcae.de). Load cases are compiled to a stack of load collective and reveals along an abridged programmable expression:

with Sgi – sectional Forces of dead loads Sgi – sectional Forces of live loads | i = 1 includes all leading live loads.

Factorization γF,inf – Partial safety coefficient beneficial action γF,sup – Partial safety coefficient adverse action γdom – Combination coefficient leading action γsub – Combination coefficient non-leading act This scheme is the outline for the execution of FEA-calculations and the factors are defined in EN 1991. There are calculations for total system and in non-linear mode. That non-linear mode implies a repetition in the calculation that incorporates deformation of the preceding run. Calculation is repeated so long as additional deformations come to a halt – if not the case, a true proof of instability vindicates, and that affected design would be improved.

CONCLUSION

This is just a brief abstract of theoretical, practical and empirical proceedings behind such outstanding dome constructions. For more than 2,000 years they have long been quite elusive as designers previously used drawing boards – which now seems to be quite an inappropriate tool. However, as time has gone by, 3D-tools and computers are used for the further advancement of dome designs. FOR MORE INFORMATION This article was written by Hannes Fischer, senior structural engineer at Vacono Aluminium Covers. www.vacono.com.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l XXXXXX XXXXXX

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l INSPECTION

TANK EMISSIONS: FINDING THE TRUE VAPOUR PRESSURE OF HEAVY PETROLEUM STOCKS

here are multiple initiatives in play in the US concerning estimation of emissions from tanks storing heavy petroleum stocks. The heavy petroleum stocks in question include refinery intermediate streams such as gas oils and products such as No. 6 fuel oil. The initiatives include enforcement as well as research initiatives by regulatory agencies and complementary research by the industry. An issue of particular interest is the determination of the true vapor pressure of heavy petroleum stocks, as this is a critical variable in the estimation of storage tank emissions.

WHAT IS TVP AND WHY DOES IT MATTER?

TVP (true vapour pressure) has different meanings in different contexts. For the purposes of determining the applicability of air regulations as well as for estimating emissions of volatile organic compounds (VOCs), TVP refers to the sum of the equilibrium partial pressures exerted by the individual VOC compounds in a given mixture at a specified temperature. Emissions from fixed-roof storage tanks that have no floating roof inside are calculated in terms of the density of the vapours

An error in the determination of TVP in a fixed roof tank would cause an error in the estimation of emissions

expelled from the tank. The ideal density of the VOC vapours in the headspace of the tank is directly proportional to the TVP of the liquid stored in the tank. Thus an error in the determination of TVP would cause a directly proportional error in the estimation of emissions from the tank.

petroleum stocks is ASTM D2879. However, ASTM D2879 has been subject to criticism pertaining to variability in results as evidenced by inconsistent reproducibility and the absence of a precision and bias statement. There is an interlaboratory study (ILS) currently underway at ASTM to address these issues.

HOW IS TVP DETERMINED FOR HEAVY PETROLEUM STOCKS?

PRIOR API STUDY

Air regulations promulgated by the US Environmental Protection Agency (EPA) typically specify four options for determining TVP for purposes of rule compliance.1 1) In accordance with Bulletin 2517 published by the American Petroleum Institute (API). This publication presents a method for determining TVP by measuring the Reid vapour pressure (RVP), from which the TVP is calculated using a set of correlation equations. However, these correlation equations are suitable only for vapour pressures greater than 1 psia, whereas heavy petroleum stocks typically have vapour pressures less than 0.1 psia. Thus this method is not applicable to these heavy stocks. 2) As obtained from standard reference texts. However, data on the TVP of heavy petroleum stocks are not generally available in standard reference texts. Specifications for heavy petroleum products such as No. 6 fuel oil do not address TVP, in that TVP is not a critical property for the use of these products. 3) As determined by ASTM D2879. 4) By any other method approved by the administrator. Thus the only pre-approved method for determining TVP that is applicable to heavy

API conducted a study in which several approaches to determination of the TVP of No. 6 fuel oil were considered, as reported in Annex G of API MPMS 19.4.2 The study recognised that each of the methods considered had limitations, but the purpose was to determine whether these imperfect methods tend to converge on a common result. The following table shows a comparison of results at an arbitrarily-selected temperature of 150Ë&#x161;F: Method

TVP (psia) at 150Ë&#x161;F

Sum of HAP partial pressures (did not include all compounds)

0.01

HOST method (intended for heavy crude oils)

0.02

Partial pressure of cutter stock (25% of the TVP of Diesel)

0.02

ASTM D2879 (average of multiple tests)

0.06

The first method, sum of HAP partial pressures, was undertaken to establish a rational lower bound on TVP at this temperature. The sum of partial pressures did not include most of the compounds in the mixture, in that only those compounds designated hazardous air pollutants (HAPS) were included.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l INSPECTION

Actual ppmv measured as 34000 ppmv as methane

The other three methods vary by a factor of three, suggesting that any of these methods may be within an order of magnitude of the actual TVP.

Heavy refinery liquids to be evaluated include: 1) a mixture whose vapour pressure is low and known 2) a hydraulic fluid with a low documented vapour pressure 3) three samples of No. 6 fuel oil Methods under consideration to determine TVP include: (at commercial laboratories) 1) ASTM D1719 2) ASTM D2879 3) ASTM D323-A (using ‘minimethod’ portable vapour pressure testers) 4) ASTM D6377 5) ASTM D6378 6) direct VOC method (this is a static method to determine the absolute vapour pressure; the manufacturer of the minimethod machine that applies this method states that it provides results comparable to ASTM D2879) 7) indirect VOC method (this method allows extrapolation to extremely low pressures) The evaluation will also include determination of the composition of the lighter ends of the No. 6 fuel oil, probably using a combination of gas chromatography-mass spectrometry (GCMS) and gas chromatography-flame ionization detection (GC-FID) analysis. A separate task will make use of the NIST-modified UNIFAC model to evaluate the potential nonideality of the behavior of vapour pressure of fuel oils to demonstrate whether Raoult’s Law would be expected to provide reasonable results. The outcome of this study is expected to include a recommendation for the most likely actual range of values for the TVP of the No. 6 fuel oil samples included in the study, as well as a summary of the advantages and disadvantages of each of the test methods evaluated. For more information about the project email ksrosselot@processprofiles.com.

FIELD TEST METHOD

A field method involves enclosing the tank vent with a temporary total enclosure (TTE)

TVA MicroFID

40000 35000

CURRENT TEXAS STUDY

30000 Actual ppmv

The Texas Air Quality Research Program is funding a project at the University of Texas at Austin called ‘Evaluating methods for determining the vapour pressure of heavy refinery liquids’, for the purpose of improving the estimates of VOC emissions from storage tanks holding heavy refinery liquids by identifying the most accurate, reliable, convenient, and reasonably priced means of measuring the vapour pressure of these heavy refinery liquids.

OVA

25000 20000 15000 10000 5000 0

Number of carbons The Texas Commission on Environmental Quality produced a graph for the potential error in the reading of a FID analyser calibrated to a single gas

as specified in EPA Method 204.3 The TTE captures vapours from the vent such that they can be routed through a duct where air flow and vapor concentration are measured. VOC vapour concentration for these field tests is often determined by EPA Method 25A,4 which specifies use of a flame ionisation detector (FID) to measure VOC concentration. Method 25A specifies calibration of the FID to a single gas, such as propane, and thus the concentration should be reported in terms of ‘ppmv as propane’ rather than as VOC concentration. The difference between the actual VOC concentration and the reading of a FID analyser is referred to as the response factor of the FID analyser, and it can be as much as a factor of 10 or greater. The potential error in the reading of a FID analyser calibrated to a single gas is illustrated in the following graph prepared by the Texas Commission on Environmental Quality (TCEQ). Each bar in the graph represents the actual VOC concentration when a FID analyser indicated 34,000 ppmv as methane. For example, the TVA reading of 34,000 ppmv as methane was more than 13 times greater than the actual C8 concentration of about 2,500 ppmv. Given this uncertainty, it is apparent that this type of ‘field measurement’ should not be misconstrued as a ‘direct measurement of actual emissions’. Furthermore, the costs and logistical challenges involved in TTE testing preclude routine use of this method.

TVP FROM DISTILLATION DATA

While TVP data is typically not available for heavy petroleum stocks, distillation data typically is available. Distillation data are generally expressed in terms of the boiling temperature for each distillation fraction. Refineries commonly sample heavy petroleum streams and perform simulated distillation in accordance with one of several ASTM methods. One current area of inquiry involves the prediction of TVP from distillation data.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

CONCLUSION

Determination of the TVP of heavy petroleum stocks has been a long-standing matter of concern for the purposes of determining rule applicability and estimating emissions. Present studies hope to demonstrate a reasonably reliable path forward for resolving this issue. REFERENCES 1 40 CFR Part 60 Subpart Kb – Standards of Performance for Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid Storage Vessels) for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984, Section 60.111b, definition of “maximum true vapor pressure.” 2 American Petroleum Institute, Evaporative Loss Reference Information and Speciation Methodology, Manual of Petroleum Measurement Standards, Chapter 19.4, Third Edition, Washington, D.C., October 2012. 3 40 CFR Part 51 Appendix M, Method 204 – Criteria for and Verification of a Permanent or Temporary Total Enclosure. 4 40 CFR Part 60 Appendix A, Method 25A – Determination of Total Gaseous Organic Concentration Using a Flame Ionization Analyzer. 5 Graph TCEQ chart is from “MSS BACT and Emission Estimates” presentation by Kurt Kind, Ph.D., P.E. Team Leader, Chemical Section at a 2007 TCEQ workshop. Stated point was to illustrate that response factors “can be up to 10 when using FID”).

FOR MORE INFORMATION This article was written by Robert L. Ferry. rob.ferry@tgbpartnership.com

TECHNICAL FEATURE l XXXXXX XXXXXX

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AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

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TECHNICAL FEATURE l INSPECTION

A NEW TANK INSPECTION TRADITION The use of robotics as part of a tank inspection regime can reduce the process from months to days and improve personnel safety

raditional methods of tank inspection are being revolutionised with the introduction of robotics into the field, which offers a safer, cheaper and faster option for operators. Previously, tank inspection methods would require tanks to be taken out-of-service, drained, degassed, cleaned and personnel sent into a highly dangerous, confined space. This process causes months of expensive downtime costs, as operators need to source secondary containment or an alternative storage area for the product while the tank is being inspected. Additionally, the cleaning and degassing process releases emissions into the atmosphere and results in the disposal of toxic sludge. Robotic technology has however been utilised by Manta Robotics to create an inspection robot that creates a safe, cost effective and environmentally friendly process, which takes days rather than months. The company’s robot currently is the only certified robotic above ground storage tank inspection system in the US, Canada and the European Union. In an interview with Tank Storage Magazine, Zachery Chapman, director of marketing, says that its ROV uses a purged and pressurised method to prevent ignition while it is deployed. This is one approved method allowed by the National Electric Code for putting electrical equipment into explosive environments. He says: ‘Our technology helps put tank owners in control of their day-to-day operations. ‘Not only can the inspection be performed while the tank is in service, a typical inspection of a 100ft diameter tank takes around three to four days – significantly reducing the duration of the inspection.’ The ROV meets all API, EPA and SPCC requirements and it is certified through the International Electrotechnical Commission,

Our technology helps put tank owners in control of their day-today operations

conforming to standards relating to equipment for use in explosive atmospheres. It uses eight ultra-sonic transducers to measure the thickness of tank floors as well as a 3D sonar tracking system to determine location while deployed inside the tank. PROBLEM SOLVER Manta Robotics was approached by North Carolina Electric Membership Corporation (NCEMC) for an API-653 inspection of two diesel tanks at their standby power generation facility in Hamlet, North Carolina. They need to be externally inspected every five years and internally inspected every 10. Chapman explains that there were several challenges with using the tradition inspection method for this particular project, which included displacement of fuel, taking the tanks out of service, cleaning, getting rid of waste, performing hot-work, confined space entry and releasing VOCs. He says: ‘To perform a tradition out of service tank floor inspection, both tanks would

Hundreds of thousands of data points are collected per tank tnspection

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l INSPECTION

The robot saves time, costs, is environmentally friendly and cuts down inspection time from months to days

need to have been emptied, which would require displacing or using 520,000 gallons of fuel for each tank. To find a new home for over one million gallons of diesel fuel would require 87 tanker truckloads to do so. The option of using the fuel up potentially runs into permitting issues as some US states are very stringent on burning excess diesel fuel.’ Additionally, the diesel fuel in the tanks is required as backup fuel as the facility is a standby power generation facility. Therefore, taking the diesel tanks out of service can potentially impact the function of the facility as the tank would need to be out of service for at least a month. NCEMC’s Shawn Fowler says: ‘The main challenges we encountered when deciding on tank inspection were the logistics and unwanted costs associated with burning the fuel for generation load and also the costs associated with the transfer of fuel and the storage needed.’ Chapman says: ‘This is where a robotic in service tank floor inspection comes in. All the problems introduced by emptying and cleaning the tank go away. ‘To perform a robotic inspection requires a platform to be setup on the tank and a way to hoist the robot onto the top of the tank. The tank can remain in service while the inspection is being performed. ‘For this particular project, both the internal and external inspections were performed simultaneously while the tanks were in service and it took four days to inspect both tanks.

‘Performing a robotic tank floor inspection significantly reduced the complexity and time that a traditional tank floor inspection would have taken. All the logistical problems affiliated with draining the tanks and cleaning them are eliminated with this kind of inspection. The tanks remain in service so the facility’s ability to operate was never compromised.’ Manta Robotics has performed several tank inspections for petroleum based companies and following feedback, has further improved

its ROV with the inclusion of two high definition cameras, including one infrared camera, to provide visuals while the inspection is taking place. Chapman adds: ‘The main challenge for us now is to educate tank owners that robotic inspections are a safe and more cost-effective alternative compared to traditional methods.’ FOR MORE INFORMATION www.mantarobotics.com

The certified inspection robot is lowered into the in service tank to perform the inspection

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l XXXXXX XXXXXX

EMISSION CONTROL SOLUTIONS

SYMEX Company, in association with her global Partners, offers a wide scale of solutions to control and treat Emissions resulting from the Storage and Handling of volatile Petroleum-, Petrochemical- and Chemical Products. These Emissions may be explosive, toxic or odorous and may also contain components to be recovered and to be revaluated.

Examples of Products causing Emissions during Storage and Handling: • Light Hydrocarbon Products (Gasoline, Naphtha) • Crude Oil (Hydrocarbons, Hydrogen Sulphide, Thiols) • Bitumen (Paraffin’s, Particles) • Aromatics (Benzene, Toluene, Xylene) • Heavy Fuel Oils (BTX, H2S, Mercaptan) • Solvents (Alcohol, Acetone, MTBE, ETBE)

Examples of Products causing Emissions during Storage and Handling: • Swing Adsorption with Regeneration by Vacuum, Steam or Hot Nitrogen • Fixed Bed Physical – and Chemical Adsorption (including handling of Waste) • Thermal Oxidation • Solvent Scrubbing

Edisonweg 27, 3899AZ ZEEWOLDE, The Netherlands, +31 36 521 97 30, www.symex.nl info@symex.nl SYMEX Company is associated with KANON Loading Equipment BV from the Netherlands (with facilities in France, UK, USA and Malaysia) and 2017 ROTAN GmbH from Germany (with facilities in many locations around Germany. 79 AUGUST/SEPTEMBER VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l TANKER FILLING

MAINTENANCE FREE REMOTE FILL SOLUTION A

Romanian oil company approached OPW to provide an easy-toinstall, reliable above ground fill point solution for a new build filling station including associated internal equipment (pipework and fill caps) that would perform for the life of the site.

PROBLEM

The oil company required an above ground remote fill sump which would allow safe fast access to fuelling points for tanker drivers, while protecting against unauthorised access or water ingress from above or below ground for the life of the site. Four fill points and one vapour recovery were specified, with fill caps and an easy-install piping solution to run to the fuel tanks. For safety, all items needed to be conductive to prevent static electricity build-up. Consideration was also given as to the accidental yet inevitable fuel drips and spills that occur when fuelling.

SOLUTION

Industry first Fibrelite GRP above ground remote fill sumps provided a great alternative to traditional galvanised steel. This system was designed in 2014 through collaboration with a major global oil company as a retrofit system to replace existing concrete sumps and connect to existing underground pipework. The composite material is impervious to corrosion from exposure to water and fuel, meaning it will remain liquid tight for the life of the site, vacuum testable like all Fibrelite sumps.

Installer friendly KPS piping used to connect fill points to tanks

GRP composite material is impervious to corrosion from water and fuel

Designed with a secondary contained spill tray to catch fuel spills and drips, the sump system includes an earth cable kit to ground the pipework. The two-leaf watertight hinged door provides lockable easy access to the fill points for the tanker driver. On this site, the door was padlocked for security instead of each individual fill cap, allowing for faster fuel delivery. Models are available in three sizes to accommodate from three to seven fill and vapour recovery lines. Systems are designed to contain either single or double wall pipework and are available with or without a drain back to the tank or interceptor. The above ground remote fillâ&#x20AC;&#x2122;s simple single piece design provides a large working space to install pipework inside the sump before the spill container is installed. All Fibrelite products are regularly subjected to rigorous independent testing to comply with stringent standards for safety, product performance, quality and reliability. In addition they are ISO 9001:2008 quality accredited meaning that the quality systems of the factory where Fibrelite products are made are systematically assessed. To ensure a watertight seal for the life of the site, this system was supplied with high quality Fibrelite Viton pipe and cable entry seal kits. Fibrelite seal kits/entry boots are designed to be easy to install. Only one hole is drilled through the chamber wall, reducing the number of leak points often associated with additional screw holes. Components screw together to create a watertight seal. Once installed, systems can be vacuum tested using the Sherlock system to check workmanship of installation and ensure watertightness. Fibrelite supply the highest grade of materials which have been extensively tested against hydrocarbons including ethanol blends to E85 and biodiesel to B20. Installers choice KPS piping was used to connect the fill points and remote fill. Compact KPS fittings minimise number of welds required

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TECHNICAL FEATURE l TANKER FILLING

by welding both pipes simultaneously wherever connections are required, reducing installation time. To complete the containment, the OPW tight-fill top-seal caps were installed on top-seal adaptors which prevent petrol vapours from escaping and water dust and debris from entering the tank. The OPW 634TT seal cap is heavy duty and corrosion resistant, with a body made of Duratuff to help eliminate rust and oxidation for a long, maintenance-free life. The toggle lever distributes downward pressure to compress its Buna-N gasket evenly, assuring a positive, water and vapour-tight seal. The 634TT can be locked with a padlock or wire seal. Together, the Fibrelite sump, KPS piping and OPW fill caps form a contained and conductive system, preventing leaks or static electricity build up. OPW heavy duty corrosion resistant seal caps

RESULTS

OPW provided a maintenance-free solution which will endure for the life of the site while reducing installation time by supplying all products from a single source and reducing number of welds required with easy-install KPS piping. The oil company is continuing to specify Fibrelite above ground remote fills for a series of new sites.

Vacuum testable GRP Fibrelite sump prevents water ingress from above or below ground

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

FOR MORE INFORMATION www.opwglobal.com/ourprojects

XXXXXXXXXXXXXX

l SPEAKER INTERVIEWS

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

SPEAKER INTERVIEWS l TANK STORAGE ASIA

SPEAKER INTERVIEWS INSIGHTS FROM A SELECTION OF TANK STORAGE ASIA’S INDUSTRY EXPERTS Interviews with some of the speakers at this year’s conference at the Marina Bay Sands, Singapore on September 27 & 28

Securing Indonesia’s downstream energy security Synergy Downstream’s Jeff Wilson explains how cross government ministry regulatory reforms and private sector investment will enable Indonesia to secure downstream energy security in the national interest

part from growing domestic energy demands, Indonesia has the potential to become a major fuels storage and trading hub. Despite growing imports of crude oil, oil fuels and LPG demand, which are projected to account for 80% of total demand by 2025, the repeated failures by consecutive governments to fully implement oil and gas laws and regulatory reforms, combined with gross long term under-investment, means that a growing downstream energy security crisis is unfolding. To put the situation into perspective, Indonesia currently has no mandatory crude oil, oil fuels or LPG operational reserves or emergency reserves at all. Fortunately this situation is now changing - creating significant private sector investment opportunities in storage and distribution infrastructure and reserves. Jeff Wilson, managing director at Synergy Downstream, explains that until recently there have been many barriers to level playing field competition, which have maintained the national oil and gas company’s de-facto monopoly across several large volume downstream market sectors. These barriers have increasingly manifested themselves through continued underinvestment, supply shortages, declining fuel stocks, substandard products and product pricing abuses. Fortunately these problems are now being addressed. He says: ‘It has been accepted by key stakeholders that downstream energy security cannot be achieved on time by maintaining Pertamina’s (national oil and gas company) de-facto monopoly, expanding its storage capacity and product reserves or by addressing the monumental chal-

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

lenges within government budget constraints and competing priorities. ‘Security requires multiple supply chains and infrastructure solutions that can only be effectively realised by a combination of regulatory reforms, significant private sector investment and level playing field competition.’Despite any or all proposed or planned refinery projects becoming operational, more than 80% of Indonesia’s oil fuels and crude oil requirement will need to come from imports – strengthening the need for more storage and logistics infrastructure. Wilson explains: ‘Domestic oil fuels and LPG demand is growing at a rate of 4% to 5% per year. For Indonesia to realise the government’s energy security targets of 30 days operational reserves and 30 days emergency reserves an additional 19,000,000 KL of oil fuel and crude oil storage and 1,500,000 tons of refrigerated LPG storage must be constructed, commissioned and stocked by year 2025. This means that Indonesia needs to quadruple all existing storage infrastructure by 2025. A package of regulatory reforms that ensure a transparent level paying field competitive market is needed, along with regulatory oversight, enforcement and significant private sector investment. In fact, Wilson estimates that $82 billion (including refineries) must be invested in Indonesia’s downstream sector in the next eight years to realise the government’s energy security objectives. Five consecutive downstream energy security projects, financed in part by the British Government, sponsored by the National Energy Council (DEN), championed by the Ministry of Energy and Mineral Resources (ESDM) and supported by the Downstream Oil and Gas Regulator (BPH Migas) have been executed by Synergy Downstream Solutions. The reports, conclusions and recommendations have been endorsed and some recommendations have been implemented with others moving forward. Wilson adds: ‘Given both the government and Pertamina’s long term financial constraints, key project recommendations focus on delivering downstream energy security at no cost to the government through level playing field competition and private sector investment.’ Wilson will be speaking on the first morning of the conference about the opportunities in Indonesia.

REMOTELY CONTROLLED REMOTELY CONTROLLED

REMOVAL OF SLUDGE FROM OIL TANKS REMOVAL OF SLUDGE FROM OIL TANKS XXXXXXXXXXXXXX

l SPEAKER INTERVIEWS

REMOTELY REMOTELY CONTROLLED CONTROLLED

Zone 0 Zone 0

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REMOTELY CONTROLLED

Zone 0

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Zone 1, Zone 2

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ADROC Tech ADROC Tech ADROC Tech Tech ADROC Tech ADROC

ADVANCED ROBOTIC CLEANING TECHNOLOGIES ADVANCED ROBOTIC CLEANING TECHNOLOGIES ADVANCED ROBOTIC CLEANING TECHNOLOGIES

ADVANCED ROBOTIC CLEANING TECHNOLOGIES ADVANCED ROBOTIC CLEANING TECHNOLOGIES

1 enviroment, air conditioned. TV TVZone Control / certified for ATEX Zone 1, 2G IIB T3 or for Zone 2, 3G IIB T3 / TV Control Control

TV Control

Three TV cameras with integrated lights Three TVwith cameras withlights integrated lights Three TV cameras integrated / /certified for ATEX Zone 0, 1G IIB T4 /1G positioned on the vehicle. / certified for ATEX Zone IIB T4on / positioned certified for ATEX Zone 0, 1G IIB T40, / positioned the vehicle.on the vehic Three TV cameras with integrated lights TV Control / certified for ATEX Zone 0, 1G IIB T4 / positioned on the vehicle.

Three TV cameras with integrated lights One placed inthe the manhole One camera placed in the manhole Onecamera camera placed in manhole / certified for ATEX 0, 1G IIB T4 / positioned on the vehicle. / /certified for ATEX Zone 1GZone IIBT4 T4 / certified for ATEX Zone 0, certified for ATEX Zone 0,0,manhole 1G IIB / /1G IIB T4 / One camera placed in the

/ certified for ATEX Zone placed 0, 1G in IIBthe T4manhole / One camera

/ certified for ATEX Zone 0, 1G IIB T4 /

Email: ADROCADROC TechLtd. Ltd. Email:office@adroctech.com office@adroctech.com ADROC Tech Email: office@adroctech.com Tech Ltd. Email: office@adroctech.com ADROC Tech Ltd. Phone: 3333 732 0548 919 29 Malženice 233 Phone:+421 +421 732 0548 919 29 Malženice 233 Email: office@adroctech.com Phone: +421 33 732 0548 ADROC Tech Ltd. 919 29 Malženice 233Phone: +421 33+421 732330548 919 29 Malženice 233 www.adroctech.com Slovak Republic Phone: 732 0548 919 29 Malženice 233 www.adroctech.com Slovak Republic www.adroctech.com Slovak Republic www.adroctech.com Slovak Republic Slovak Republic

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DEVELOPED andMANUFACTURED MANUFACTURED in SLOVAKIA 2017 VOLUME 13 ISSUE NO.4 DEVELOPED and in DEVELOPED MANUFACTURED ininAUGUST/SEPTEMBER SLOVAKIA DEVELOPED and MANUFACTURED SLOVAKIA DEVELOPED andand MANUFACTURED in SLOVAKIA SLOVAKIA

SPEAKER INTERVIEWS l TANK STORAGE ASIA

The financial attractiveness of tank terminals Jon Ornolfsson, Partner at Ashurst and Samuel Tan and senior associate examines some of the legal issues surrounding tank terminal transactions and some of the complexities of LNG regasification and storage projects

ank terminal storage projects are usually grouped together with other energy infrastructure projects or assets that are deemed attractive (both to investors and lenders) due to their stable and predictable cash flows. There are well-established precedents for the project financing of tank terminal storage projects on a limited recourse basis.1 Limited recourse project finance lenders typically adopt a conservative risk approach as they are entitled to limited ‘upside’ from the project apart from the fees and interest payments related to their loans. Tank terminal storage projects have historically proven to be attractive to such lenders, particularly where: (a) The relevant terminal developer/owner (i.e., the borrower) is entitled to a stable revenue stream from ‘take or pay’ tariffs paid by one or more credit-worthy terminal users pursuant to long term storage capacity use contracts; (b) There is a fair allocation of risk among the various parties connected to the project, according to which of the parties are best placed to manage or mitigate such risks, and based on other project precedents of a similar type; and (c) The project utilises proven technologies and construction methodologies – which is often the case with oil and petrochemical tank terminal projects. However, an interesting trend to note is the recent proliferation of planned LNG storage and regasification terminal projects in the Asia region. This is because countries are increasingly turning to LNG as a feedstock for power generation and other industrial processes, which could offer some new opportunities as well as additional challenges for project finance lenders when compared to traditional oil storage terminal projects. LNG REGASIFICATION: RISKS AND MITIGATIONS Whilst there are many similarities in relation to the development of both oil tank terminal projects and LNG regasification and storage projects, the latter may involve some additional complexities and different risks. For example: LNG storage and regasification projects typically involve higher upfront investment costs for fixed infrastructure (in particular for LNG storage tanks) when compared to oil and petrochemical tank terminal projects. Potential mitigations: • Project financing. • Adopting a phased development for the storage and regasification project LNG storage and regasification projects may involve developing or procuring separate key infrastructure such as a floating regasification and storage unit (FSRU) and related mooring infrastructure (if an offshore solution is contemplated), and/or connected gas pipelines to deliver gas within the project. This introduces additional construction risk and ‘project on project risk’, for example, a delay on one part of the project could delay or adversely affect another part of the project, and consequently the overall revenues from the project. Potential mitigations: • Incorporating an ‘umbrella’ or ‘wrap’ between the various EPC contractors requiring coordination, minimisation of interface issues and interference and liability in the event of breach, which might involve a price premium

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

• Robust FEED linking the various facilities • Selecting contractors with a good track record of integrated structures • Clear division of responsibilities between the EPC contractors relating to the compatibility of each related item of infrastructure and choosing interface points with minimum impact • Requiring each EPC contractor to factor sufficient float into its schedule for possible delays to other relevant parts of the project • Imposing liquidated damages on individual milestones under each EPC contract that affect other work streams, including an ability for lenders to take over packages if necessary • Sufficient performance security, in light of the potential impact of each EPC contract on the broader project LNG storage and regasification terminals may also require customers to share the (limited) LNG storage tanks. Potential mitigations: • The terminal operator will need to put in place clear inventory management and accounting procedures, which need to be applied consistently to all terminal users • In some projects, terminal users may also be required to enter into inter-user agreements to allocate liabilities between themselves in the event of certain losses or damages caused by a terminal user, for example, delivery of an off-specification LNG cargo which contaminates the inventory of the other terminal users Due to the regasification element involved, LNG storage and regasification projects may require a minimum amount of throughput or regasification in order to maximise overall efficient use of the terminal. Potential mitigations: • Terminal operator should impose corresponding minimum gas offtake obligations on each of its terminal users • Failure by terminal users to meet such minimum gas offtake obligations should be allocated between each responsible terminal user according to a clear mechanism • Each terminal user’s share of boil-off gas and gas lost in the ordinary course of terminal operations should also be allocated between each responsible terminal user according to a clear mechanism Where third party access is regulated, the tariff structure may be subject to regulatory oversight and/or change, which potentially affects the stability of revenues from the project. Potential mitigations: • Dialogue with the relevant regulator on the methodology to be applied when calculating the applicable tariffs • If necessary, negotiation for exemptions from regulatory oversight to facilitate the recovery of development and construction costs DELIVERY OPTIONS FOR SELLING STORED INVENTORY & LEGAL CONSIDERATIONS Terminal users who wish to sell their stored tank inventory may agree to deliver the relevant product to their buyers in four main ways: (a) In-tank delivery – transfer of the product from the terminal user/seller to the buyer will occur whilst the product is still within the storage tank (no physical delivery is required); (b) Inter-tank delivery – where the relevant tank terminal storage project has segregated storage tanks for certain terminal users; (c) Ex-tank delivery – the terminal user/seller will deliver the product to the buyer directly from the tank; or (d) Delivery at a further downstream delivery point which may require the terminal user/seller to arrange to transport the product from the tank storage terminal (e.g., via a vessel, truck or pipeline). The relevant delivery option chosen will have significant implications as to when title and risk of loss of the relevant product will pass from terminal user/seller to its downstream buyer, and the corresponding contractual provisions that the terminal user will need to agree with the terminal

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SPEAKER INTERVIEWS l TANK STORAGE ASIA

operator under its storage agreement, including: • In the case of In-tank transfers, the terminal user/seller should ensure the terminal operator has put in place specific inventory transfer/management procedures (including measurement and testing) that will be applied consistently and fairly between each of the other terminal users. This would help to mitigate the risk of future disputes over title to and shortfalls in product inventory. In-tank transfers may also be limited to transactions between existing terminal users with storage agreements with the terminal operator. • In the case of inter-tank transfers, the terminal user/seller may require the prior approval and/or services of the terminal operator to physically move the product from one storage tank to another. • Testing of product quality may vary depending on how the relevant product is to be delivered, and the relevant storage agreement should provide for each of the relevant delivery options contemplated. In particular, specific differences may exist depending on whether the product is to be reloaded by terminal user/seller or its buyer onto a vessel or truck, or delivered into a downstream pipeline. • Where the relevant product is to be loaded by the terminal user/seller or its buyer onto a vessel, the relevant storage agreement will need to provide a vessel nomination regime and a system for scheduling the use of the relevant jetty or berthing facilities. This is especially key where there are limited berthing slots available. • In the case of redelivery of regasified LNG into a downstream gas pipeline, the terminal user will need to ensure that it or its buyers has the relevant downstream capacity rights in such a pipeline. The terminal operator typically will not want to be liable for any imbalance charges or other liabilities imposed by the operator of such a downstream gas pipeline. In each of the above cases, additional fees may also be payable by terminal user to the relevant terminal owner and this should be factored into the costs of the terminal user’s downstream sales.

Ornolfsson will be speaking more about the legal issues surrounding terminal transactions on the first day of the conference. REFERENCES 1 Limited recourse project financing is where the lenders to a tank terminal storage project look mainly to the assets and revenues of the relevant project development company as the primary source of repayment of the relevant loans.

Risks and opportunities of tank terminals in India Mukesh Parikh, senior consultant at SmartHead Consulting, examines the risks of operating storage terminals in India and how the country’s emerging economic landscape has the potential for exciting opportunities

he improved economic landscape, coupled with government efforts to transform India into a manufacturing hub is resulting in greater demand for energy. The present socio-economic scenario is leading to a number of threats and risks as well as a plethora of opportunities for the tank storage industry. A section of leading players of the bulk liquid industry believe that the increase in the volume of liquid imports and exports will drive conversion from containers to bulk for a number of liquid products. Conversion away from containers to bulk is a unique feature in the maritime industry in recent years. For major ports in India with a capacity utilisation of over 80%, efficient and safe handling of increasing bulk liquids is a challenge.

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

Major privatisation initiatives and concession agreements are focused on developing and expanding container handling capacity at the ports, terminals as well as inter-modal corridors. However, the process of developing bulk liquid industry infrastructure does not receive similar attention as container handling infrastructure. The development of tank storage is carried out by tank storage terminal operators at major ports using a plot of land offered by the port authority, usually at a considerable distance from the jetty. These tank storage terminal operators have no control over the development of marine infrastructure, which is a function of the port authorities. CRZ regulations and environment compliance requirements necessitate locating the storage tanks at a considerable distance from the ship side and marine jetty, leading to additional investment in longer and bigger pipelines. BUSINESS RISKS In addition to the development related threats and risks, a number of business and operations related risks are faced by Indian storage terminals. A substantial operations risk is inadequate understanding and non-compliance of HSE and a number of ISO manuals by a majority of the operating staff. This non-compliance can lead to catastrophic risks. The extent of such risks and threats increases exponentially with the increase in volume of business and higher operations activities. Inadequate infrastructure in hinterland connectivity and the mode of transportation for petroleum products and petrochemicals leads to another operational risk as the majority of bulk liquids are transported by road. Pipelines and rail are known to be safer modes. However, a lack of rail infrastructure and rolling stock (dedicated bulk liquid wagons), compels the cargo owners to use road transportation. Multi-modal transport connectivity, using rail and inland waterways transport, provides a good opportunity especially with increased volume of bulk liquids. Some ports and terminals have created rail handling infrastructure at their liquid storage terminals. There are still a number of opportunities in terms of ownership of rolling stock – dedicated bulk liquid wagons and providing multi-modal services. Business risks associated with recent price deregulation of petroleum products by the government, encourage private players to explore downstream distribution. This will lead to greater demand for storage capacity at every stage of the distribution channel, which presents an opportunity for the operators to expand their capacity. Storage and distribution of bulk liquid is further streamlined in a seamless manner by GST system, what are being implemented throughout the country effective from July 2017. NEW OPPORTUNITIES Systematic risk mitigation measures provide a number of exciting opportunities in emerging economic scenario of India. Green field port developments, especially by the private sector, provides an integrated approach to develop terminals in line with and in parallel to the development of port infrastructure and hinterland connection. During last two decades, private ports have been developed at Pipavav, Mundra, Krishnapatnam, Dahej, Hazira and Dhamra along with parallel liquid bulk handling infrastructure. Additional opportunities for the development of new ports and tank storage terminals continue, with the announcement of the Sagarmala project. With six new port projects and planned additional port capacity of 1400MMT during the next decade, the entire coastline and inland waterways are being developed. Pan India operators have leveraged their multi-location presence by adopting an integrated management system (IMS), replacing a number of different ISO manuals, thereby improving the level of compliance and mitigating operations risks in addition to using the IMS as an effective business promotion strategy.

Parikh will be speaking more about the threats, risks and opportunities for terminal operators in India on the second day of the conference.

EVENTS l TANK STORAGE ASIA PREVIEW

DIORCA INDUSTRIAL CA CA DIORCA INDUSTRIAL

OfferingOffering a full service to the storage industry to tank the tank storage industry for over 25 years Offeringaafull fullservice service to the tank storage industry

Delivering engineering, procurements, quality assurance and maintenance to its clients across the oil, gas and petrochemical industries, Diorca Industrial has more thank 25 years of experience ranging from initial feasibility studies to commissioning and start up. Equipment supplied includes: • EPC Construction projects • Aluminum Geodesic Dome, and covers • Aluminum Internal Floating Roofs • SS seals for Internal and External Floating Roofs • Steel plates, pipelines and accessories • Drainage systems • Fire-fighting systems • Instrumentation and measuring systems • Hoses, Valves, Vents, Flame arresters, Detonation arresters, and Measuring hatches. • Aluminum silicate abrasives for blast-cleaning

Services provided include: • Inspection and Technical Advising on optimization of Storage Tanks. • Installation of Aluminum Geodesic Domes for storage tanks, and residual water Deliveringpurification engineering, systemsprocurements, quality • Installation of aluminum membrane Serviceson provided include: assurance and maintenance to its clients tanks with fixed roofs. across the oil, gas and petrochemical industries, 3 Inspection and Technical Advising on • Installation of primary and secondary optimization of Storage Tanks. Diorca Industrial has more thank 25 years of seals for storage tanks with External 3 Installation of Aluminum Geodesic Domes for storage experience ranging from initial feasibility Floating Roofs tanks, and residual water purification systems studies • toEPC commissioning Construction of oil and start up. 3 Installation of aluminum membrane Delivering engineering, procurements, quality Delivering engineering, procurements, quality Atmospheric Storage Tanks or on tanks provided with fixed roofs. include: Services provided Services include: assurance and maintenance to its clients assurance and maintenance to its clients quipment supplied includes: Pressurized Storage Tanks 3 Installation of primary and secondary seals across theand oil, of gas industries, across the oil, petrochemical industries, • Cleanup andgas recovery oil and petrochemical 3 Inspection and Technical on 3 Inspection and Technical Advising Advising on 3 EPC Construction projects for storage tanks with External Floating optimization of Tanks. Storage Tanks. Roofs products in tanks Diorca Industrial has more thank 25 years of optimization of Storage Diorca Industrial has more thank 25 years of 3 Aluminum Geodesic Dome, and covers 3 EPC Construction of oil Storage 3 Installation ofAtmospheric Aluminum Domes for storage • EPC Construction, Installation, 3 Installation of Aluminum GeodesicGeodesic Domes for storage experience from initial feasibility experience ranging from feasibility 3 Aluminum Internal Floatingranging Roofs initial Tanks or Pressurized Storage Tanks tanks, and residual water purification systems tanks, and residual water purification systems and Maintenance of metallic studies toExternal commissioning and studies to commissioning and start up.start up. 3 SS seals for Internal and Floating Roofs 3 Cleanup andof recovery oil products in tanks 3 Installation ofof aluminum membrane 3 Installation aluminum membrane structures 3 Steel plates, pipelines and accessories 3 EPC Construction, Installation, and Maintenance on tanks with fixed roofs. on tanks with fixed roofs. • Manufacturing, Installation, Repair, Equipment supplied includes: Equipment supplied includes: 3 Drainage systems 3 Installation of and primary and secondary seals of metallic structures 3 Installation of primary secondary seals and Maintenance of Fire Fighting 3 EPC Construction 3 Fire-fighting systems 3 EPC Construction projects projects fortanks storage tanks with External Floating Roofs 3 Manufacturing, Installation, Repair, and for storage with External Floating Roofs Systems. 3 Aluminum Geodesic Dome, and covers 3 Instrumentation and measuring systems 3 Aluminum Geodesic Dome, and covers 3 EPCofConstruction ofSystems. oil Atmospheric Maintenance FireofFighting 3 EPC Construction oil Atmospheric Storage Storage • Piping Installation, construction andRoofs 3 Aluminum Internal Floating Tanks orconstruction Pressurized Storage Tanks 3 Aluminum Internal Floating Roofs 3 Hoses, Valves, Vents, Flame arresters, Detonation Tanks or Pressurized Storage Tanks 3 Piping Installation, and assembly assembly 3 SS seals for Internal and External Floating Roofs 3 Cleanup and recovery of oil products 3 SS seals for Internal and External Floating Roofs arresters, and Measuring hatches. 3 Cleanup and recovery systems of oil products in tanks in tanks 3 Installation of drainage • Installation ofplates, drainage systems 3 Steel pipelines and accessories 3 EPC Construction, Installation, and Maintenance 3 Steel plates, pipelines and accessories 3 Aluminum silicate abrasives for blast-cleaning 3 EPC Construction, Installation, and Maintenance 3 Clean-Blasting services • Clean-Blasting services 3 Drainage of metallic structures 3 Drainage systems systems of metallic structures 3 Industrial Painting • Industrial Painting 3 Fire-fighting 3 Manufacturing, Installation, Repair, and 3 Fire-fighting systems systems 3 Manufacturing, Repair, and 3 Tank Bottom grit Installation, blasting and painting • Tank 3 Instrumentation Bottom grit andmeasuring painting and Maintenance of Fire Systems. Fighting Systems. 3 Instrumentation andblasting measuring systems systems Maintenance of Fire Fighting protection in tanksconstruction and pipelines • Cathodic protection inVents, tanks and pipelines 3 Hoses, Valves, Flame arresters, Detonation 3 Cathodic3 Piping Installation, and assembly 3 Hoses, Valves, Vents, Flame arresters, Detonation arresters, and Measuring arresters, and Measuring hatches. hatches. 3 Aluminum silicate abrasives for blast-cleaning 3 Aluminum silicate abrasives for blast-cleaning

DIORCA INDUSTRIAL, CA

DIORCA INDUSTRIAL, CA Frater Radulphusweg, #1-A, Habaai rater Radulphusweg, #1-A, Habaai Willemstad, Curacao, Dutch Caribbean Willemstad, Curacao, Dutch Caribbean email tanks@diorca.com E: tanks@diorca.com 88

DIORCA INDUSTRIAL, CA DIORCA INDUSTRIAL, CA Frater Radulphusweg, #1-A, Habaai

3 Piping Installation, construction and assembly 3 Installation of drainage 3 Installation of drainage systems systems 3 Clean-Blasting 3 Clean-Blasting services services 3 Industrial 3 Industrial Painting Painting 3 Tank Bottom grit blasting and painting 3 Tank Bottom grit blasting and painting 3 Cathodic protection in tanks and pipelines 3 Cathodic protection in tanks and pipelines

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

EVENTS l TANK STORAGE ASIA PREVIEW

ACCELERATING INTO THE FUTURE Returning to the luxurious Marina Bay Sands for its fifth edition Tank Storage Asia offers a platform for visitors to explore opportunities within the region with the largest amount of growth in global storage capacities. With a variety of different companies from across the supply chain on the show floor and an insightful conference programme discussing the latest market trends, the two day event will be a focal meeting point for professionals from across the industry. Tank Storage Magazine takes a look at some of the products and services on display at this year’s show on September 27 and 28… Access Professional Singapore Aquila Nova BS&B FlameSaf CTS (Far East) Concrete Canvas DeHumidification Technologies Deleum Primera Denso and Premier Coatings Implico

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

Krohne Labuan IBFC Loadtec Engineered Systems Liquid Controls M+F Technologies Protego

Timm Elektronik UL International Singapore Verwater Viscoy Wiese Europe

Saferack/ErectaStep Scanjet Siemens

EVENTS l TANK STORAGE ASIA PREVIEW

Access Professional Singapore is an ISO certified & SAC-SINGLAS accredited company offering a complete solution on sales and aftermarket servicing for instrumentation and valves in Singapore, Vietnam, Myanmar and China. Capabilities include: Custom-made Jerguson level gage, control valve/manual valves/safety valve testing, overhaul and in-situ jobs, SINGLAS approved workshop and in-situ PSV certification, flow verification – onsite & workshop and pressure & temperature switches setting.

Aquila Nova designs, manufactures and supplies Advanced Explosion-Proof extreme environment security surveillance (CCTV) systems to the storage industry with the latest video analytic technology. These systems enable safe and efficient business operations as the scale and nature of the threats that they are facing is rapidly changing. Services: Site survey to understand the requirement Advanced software to determine coverage Calculation of requirements based on cost-effective methodology Advanced features – video analytics, face recognition, license plate recognition, thermal technologies Works with upstream marine & offshore to extreme environment Types of camera solutions with thermal options Offshore platforms and rigs FPSO/FSO Tankers, LPG, LNG vessels Marine vessels tugs and barges Petrochemical plants & refineries Chemical plants

Visit Access Professional Singapore at: STAND A1

Visit Aquila Nova at:

40 YEARS VACONO

STAND D17

Aluminum geodesic dome roofs are used to cover storage tanks up to 120 m diameters in the petroleum industry.

WORLDWIDE MORE THAN 6,000 REFERENCES

• Extreme Light-Weight Construction • Corrosion Resistance • Low Maintenance • Low Erection Cost • Minimum Emission

Visit us 2017

PONTOON SYSTEM

in Singapore at booth no. C24

Low maintenance internal floating covers to limit the emissions which occur where volatile hydrocarbons are stored. • Payback time < 6 months • 9 different designs available • Choice of Aluminum, Hybrid AL-SS, Stainless Steel • Pontoon design for best price /cost ratio • Full Contact Design for maximum efficiency • Suits all known storage products

FULL CONTACT SYSTEM

NEW Our new generation, unique engineering: Aluminium Full Contact IFR

GERMAN QUALITY WORLDWIDE

Vacono America LLC www.vacono.com info@vaconoamerica.com

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TRUST YOUR TANK’S PROTECTION TO

EVENTS l TANK STORAGE ASIA PREVIEW

DENSO HAS OVER 40 YEARS OF PROVEN EXPERIENCE PROTECTING TANKS WORLDWIDE FROM CORROSION.

FIND US IN 2017 AT:

TANK STORAGE ASIA 27-28 SEPT - STAND A22

ADIPEC

13-16 NOV - STAND 510

PRIMERS/SEALERS

INTERNAL TANK LININGS

Our ARCHCO™ linings and coatings are designed specifically to protect steel and concrete surfaces from corrosion in aggressive environments.

EXTERNAL TANK COATINGS

UK, Middle East & Far East www.denso.net + 44 (0) 20 8670 7511

INTERNAL PIPE LININGS

USA & Canada www.densona.com + 1 281 821 3355

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

TANK BASE PROTECTION

Australia & New Zealand www.densoaustralia.com.au + 61 393 56 7600

South Africa www.denso.co.za + 27 31 569 4319

EVENTS l TANK STORAGE ASIA PREVIEW

BS&B is a leading supplier of oil and gas related process equipment and overpressure protection devices. The company’s innovative product ranges includes rupture disk devices, custom engineered products, industrial explosion protection, specialty valves, flame arrester and breather vents. BS&B FlameSaf flame arresters reliably stop the propagation of a flame front in piping and immediately cool the ignited medium to a temperature below its ignition point. As an insurmountable bi-directional barrier, they protect against the effects of an explosion and thus defuse risks effectively. In addition to the versions for installation in piping, BS & B also offers TankSaf versions, which are designed as end fittings and prevent flames from passing back into closed systems. BS&B also offers a combination of an integrated flame arrester with a breather vent, where unwanted under pressures and overpressures also pose a risk for closed container systems.

Visit BS&B FlameSaf at:

STAND E22

Award winning Concrete Canvas and CC Hydro are part of a revolutionary class of construction materials called Geosynthetic Cementitious Composite Mats (GCCMs). They are flexible, concrete impregnated fabrics that harden on hydration to form a thin, durable, water proof and fire resistant concrete layer. Essentially, it’s concrete on a roll. Concrete Canvas GCCM (CC) and CC Hydro can be used to line bunds, drainage channels and slopes to prevent erosion, weed growth and animal damage. It can be installed at rates of up to 800m² a day and in inclement weather, reducing contractor burden and program disruption. CC is hydrocarbon resistant to BS14414, passing a 56 day immersion test at 50oC. In addition, CC creates no rebound so can be installed around sensitive infrastructure, with the man portable batched rolls allowing concrete installation in difficult to access areas without the use of plant.

Visit Concrete Canvas at:

STAND B1

DeHumidification Technologies provides humidity and temperature control solutions to multiple industries in the US, Canada, Australia and Thailand. The company uses the highest quality equipment for every job it undertakes with experienced and highly trained technical staff. Owners Ken Armstrong and Brian Battle work closely with employees to deliver unparalleled customer service.

Visit DeHumidification Technologies at: CTS (Far East) is specialised in the design, manufacturing, supply and installation of products and systems used in the safe and effective transfer and storage of chemicals and hydrocarbons. Its products and services include among others: Aluminium geodesic dome roofs Internal floating roofs, various materials Tank seals, primary and secondary tank seals Drain systems for externals floating roof tanks Composite hoses Dry break couplers Emergency release couplers Floating suction lines Foam dam, integral Skimmer units Swivel joints Installation and inspection The company’s international presence and expertise allow it to serve the oil majors such as Petronas, Shell, Total, Vopak and VTTI, where the following recent contracts have been awarded: • Petronas, RAPID Project, dome roofs • Shell, Pulau Bukom, dome roof • Total Cambodge, aluminium full contact internal floating roofs

Visit CTS (Far East) at:

STAND A15

STAND E17

Deleum Primera is principally involved in providing services for integrated corrosion, inspection and mitigation for the oil and gas industry. The company has significant experience in surface preparation work, corrosion protection application, fire proofing and shielding, cold and hot insulation, and also structure, equipment and pipeline integrity maintenance. Together with RPR Technologies from Norway, the company brings one of the fastest, safest and cleanest method for removing paints and coating from steel surfaces. This product is environmentally friendly, has no contamination, and is cost efficient by reducing the total project schedule. There is minimum waste disposal, less energy use and it is safe to use for operators.

Visit Deleum Primera at:

STAND E23

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

BLABO® Tank Cleaning SLOPO® Oil Recovery MoClean® ATS Tank Cleaning

EVENTS l TANK STORAGE ASIA PREVIEW

Clean, safe, and profitable

Oreco non-man entry tank cleaning and oil recovery systems provide high-technology solutions for your tanks - with safe working conditions, minimised emissions and visible cost benefit to your enterprise. Discover how at www.oreco.com AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

www.oreco.com

Oil-water solids separation and recovery solutions

EVENTS l TANK STORAGE ASIA PREVIEW

Specialist anti-corrosion, sealing and waterproofing products manufacturer Winn & Coales International is well known for its brands Denso and Premier Coatings. The brands’ products are of high quality and are well-known for their effectiveness and long service life. They continue to offer an effective solution to corrosion prevention, sealing and waterproofing problems for tanks, buried, submerged or exposed steel or concrete, pipes and structures. Denso and Premier Coatings will be showcasing their Archco tank linings & coatings at the show, which are designed specifically to protect steel and concrete surfaces from corrosion in aggressive environments. In addition to this their tank base protection systems and full product range will be on display, along with experts that will be available to answer technical questions.

Visit Denso and Premier Coatings at:

STAND A22

From entrance to exit is Implico’s theme at this year’s show. The consulting company will demonstrate how modern software and cloud solutions can optimise tank terminal processes. Implico’s downstream experts will be on hand to explain the wide range of application areas of the iGOS cloud services. These range from uniform data communication and collaboration with suppliers and logistics service providers, to automated logistics processes, through to managed services in which specialists from Implico take responsibility for specific routine tasks. Implico will also be showing the very latest version of its OpenTAS terminal management and automation system. The newest OpenTAS feature is a handheld solution that enable operational staff to work with the terminal management system during loading. Using a mobile device, staff can now digitally log incoming rail and tank trucks. The data is sent immediately to OpenTAS, cutting out manual input and avoiding typical input errors.

Visit Implico at:

STAND E14

Krohne covers the entire value chain in the oil and gas sector from multiphase measurements at wellhead to process measurement inside refineries, pipeline transfer, storage and distribution. It provides tank measurement for various applications using liquid ultrasonic meters and Coriolis based mass flow meters with entrained gas management (EGM) for demanding applications measuring 0-100% gas entrainment. The company offers complete system solutions using different flow measurement technologies and supervisory software platforms for centralised and decentralised installations. Krohne is a leading supplier of custody transfer metering systems. It has flow computers and visualisation software along with world class instrumentation, allowing it to offer complete project management from design concept to commissioning and start up. On display at this year’s show is the Optimass 2400 a large diameter mass flowmeter for bulk measurement and custody transfer of liquids and gases. Building on the success of its twin straight tube design, the four tube Optimass 2400 is a natural evolution.

Visit Krohne at:

STAND E25

Labuan International Business and Financial Centre (Labuan IBFC) offers global investors and businesses the benefits of being in a well-regulated midshore international business and financial centre, which provides fiscal neutrality and certainty, in addition to being an ideal location for substance creation. Located off the northwest coast of Borneo, Labuan IBFC provides access to Malaysia’s network of more than 80 double taxation agreements and boasts Asia’s widest range of business and investment structures for cross-border transactions, international business dealings and wealth management needs. Well-supported by a robust, internationally recognised legal framework, Labuan IBFC operates within clear and comprehensive legal provisions and industry guidelines, enforced by its single regulator, Labuan Financial Services Authority. With a focus on enabling cross-border transactions, providing risk management structures, Islamic financial services, commodities trading incentives and wealth management vehicles, it offers solutions to regional businesses going global or global businesses looking at penetrating Asia’s burgeoning markets.

Visit Labuan IBFC at:

STAND E19

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

EVENTS l TANK STORAGE ASIA PREVIEW

INFRASTRUCTURE MINING & METALS NUCLEAR, SECURITY & ENVIRONMENTAL OIL, GAS & CHEMICALS

Storage and terminal solutions to meet our customer needs Our direct-hire, self-perform approach to tank design and construction brings Bechtelâ&#x20AC;&#x2122;s time-tested execution experience to the engineering, procurement, fabrication, and construction of storage tanks. Our experienced team specializes in project management, design, welding, procurement, fabrication, and field construction always focused on safety and the quality of delivery. Bechtel maintains global reach with strategically located offices in Houston, London, and New Delhi. Bechtel is among the most respected engineering, project management, and construction companies in the world. Bechtel uses a direct-hire, self-perform execution model that maximizes value to our customers by providing a single point of accountability. This approach results in exceptional safety, high quality, optimized schedule, and lower installed cost. In the past 11 years, we have self-executed and managed more than $6 billion of storage tank projects worldwide.

Contact us at tanks@bechtel.com to discuss how we can help on your next tank project. To learn more visit bechtel.com/ILTATanks Bechtel is one of the most respected global engineering, project management, and construction companies.

To view video, download the Scan app on any smart device AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

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EVENTS l TANK STORAGE ASIA PREVIEW

Loadtec Engineered Systems is a global provider of high quality and safe solutions for bulk fluid transfer and tanker fall prevention manufactured in the UK, EU and the US. Loadtec manufactures its own range of high quality road tanker, rail and marine loading arms under the Zip-Load brand. Loadtec also designs, engineers and supplies bulk fluid transfer packages including meter and pump skids; safe tanker access platforms; operator safety cages; breakaway couplings and dry-disconnect systems. Loadtec is represented globally by a number of agents and distributors to provide a high level of support for its products and its customer needs. Loadtec Service is a fully equipped and certified company with an international team of engineers and after market professionals with experience of working on installation, maintenance and servicing of all types of road, rail and marine loading and access systems.

Visit Loadtec Engineered Systems at:

Visit Protego at:

STAND C25

STAND F18

Liquid Controls, an IDEX metering and fuels company, will be launching its Avery-Hardoll DM series positive displacement flowmeter. In 2015, Liquid Controls acquired Avery-Hardoll and has since released the improved BM and DM series meters as well as the Masterload II preset register. Avery-Hardoll developed the original rotary vane meter technology in 1932, which has still been proven to be the most accurate PD flowmeter in the world. Liquid Controls invented the first tri-rotor positive displacement flowmeter in 1956. This design is a touchless rotary abutment design that has proven to have wear-free rotors for the life of the meter. LC has expanded to also offer Coriolis mass meters, turbine meters, electromagnetic flow meters. Also on display will be LC electronic registration products LectroCount, electronic registers, Toptech MultiLoad SMP preset controls, Corken pumps, pulsers, valves, strainers and air eliminators.

Visit Liquid Controls at:

Since 1954 Protego has built and provided safety devices and tank equipment, and currently has more than 500 employees worldwide. The company provides global services for research and development, application-specific engineering, and overall protection system design. Its customers trust in its products and high quality and development standards for process engineering, the petroleum, chemical, and pharmaceutical industries and the bio-energy sector.

STAND B10

Saferack specialises in Improving safety and productivity at truck, railcar and industrial loading terminals. It manufactures gangways and loading platforms and provides turnkey services to carriers of crude oil, natural gas and liquid products. Manufactured using precision laser technology, the systems support safety compliance and offer fall protection that’s durable, easy to operate and requires little maintenance. ErectaStep, RollaStep and YellowGate brand turnkey stairs, gates, crossovers, and work platforms support safety compliance and deliver fall protection ships same day and are easy to assemble, install and operate. Manufactured using precision laser technology and a patented modular design, the systems have high quality, durability and can be easily reconfigured and repurposed as a plant’s footprint changes.

Visit Saferack/ErectaStep at:

STAND D16

As a solution provider, M+F Technologies offers expertise in the handling of oil products. The company provide complete system solutions based on its own technologies and state-of-the-art products, covering a range of different needs, from consulting and engineering to implementation and even including regular servicing. As an experienced specialist, the company takes care of all tasks linked to the automation, digitalisation, and management of tank farms, tank terminals and fuel supply systems. Its focus here is on loading systems for tank trucks, rail cars and ships, as well as on blending systems and fuel supply systems at airports. At the show it will present its latest MFX_4 flow computer system for custody transfer with the unique explosion proof 10” full colour display HMI and its COTAS terminal management system, which is capable of handling small terminals up to complex international terminal networks.

Visit M+F Technologies at:

STAND A23

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EVENTS l TANK STORAGE ASIA PREVIEW

argusmedia.com

Argus Africa Oil Storage and Logistics 2017 Consulting 11 - 13 October – Cape Town, South Africa Events

The meeting place for international and sub-Saharan African organisations involved in the movement and storage of crude and oil products across the continent

Exclusive Tank Storage Magazine Discount

Quote TSM20 to save 20% off the standard rate

Headline speakers and advisory board members include: Alpheus !Naruseb Minister of Works and Transport, Namibia

Jabulile Mashwama Minister of Natural Resources and Energy, Swaziland

Kanwar Ratra CEO Ultimate Oil and Gas, Rahamaniyaa Group

David Sineke Research and Information Analyst, Corporate Planning, Engen

Ezekiel Adesina Senior Business and Strategy Analyst, Nigeria LNG

Jean-Clement Beyeme Zogo, Investor Account Manager, Gabon Special Economic Zone

Join regular participants from: Total • Vitol South Africa • Transnet National Ports Authority • Petro SA • Bidvest Tank Terminals • Vivo Energy • Kenya Petroleum Refineries • Glencore • Botswana Oil Limited • Oiltanking MEA • NERSA • MRS Holdings • Puma Energy • Linetrale Petroleum • Trafigura Services South Africa • Sahara Bulk Storage Facilities • Pinnacle Oil & Gas • TSL Logistics • Rosen Europe • Forte Oil • Kenya Pipeline Company • Ocean Terminals • Star Energy Group • Valco Group • Nimex Petroleum • International Finances Corporation • Petrocam Trading Nigeria • Horizon Terminals • Taleveras Petroleum Trading • Tune Product Tankers • Burgan Cape Terminal • Deen Petroleum • Techno Oil • Standard Bank of South Africa • VTTI Kenya • Rainoil • Foster Wheeler South Africa • Mobil Oil Nigeria • Oryx Energies • Vopak • Stolthaven Terminals • SAOGA and many more...

Official Media Partner

“Besides storage companies, consultants, traders /marketing companies and regulators that make up our ecosystem required to develop a project, the conference included robust representation from project funders... a very useful event that will make it easier for us to execute on our projects going forward.”

Dipo Salimonu, CEO, Moteriba Terminals and Logistics Find out more about Argus Africa Oil Storage and Logistics 2017 - Quote code TSM20 and save 20% off the standard rate africastorage@argusmedia.com

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

+44 (0)20 7780 4341

www.argusmedia.com/africa-storage

EVENTS l TANK STORAGE ASIA PREVIEW

Scanjet is a leading supplier of tank cleaning equipment and solutions for applications where performance and reliability matter. With more than 50 years’ experience, Scanjet has been involved in every aspect of tank cleaning across all major industries including chemical, pharmaceutical, food and beverage, oil and petrochemicals, pulp and paper, transport, and many others. Scanjet products are designed for the most demanding applications. The company will be showcasing its Scanjet SC 60A at this year’s show. It is an advanced tank cleaning nozzle specifically designed for crude oil storage where tank entry is restricted, as it can enter the tank via the support legs of floating-roof-tanks. The SC 60A is pneumatically driven, can be programmed for sector cleaning or a specific cleaning pattern, and is capable of handling solids several times the particle size of conventional nozzles. The SC 60A is certified for operation in ATEX zone zero environments.

Visit Scanjet at:

STAND D14

Siemens is a global powerhouse focusing on the areas of electrification, automation and digitalisation. This year, Siemens brings to Tank Storage Asia the latest version of its distributed control system – the SIMATIC PCS 7 V9.0. With total PROFINET support, it allows for greater freedom in plant design and operation, paving the way for plant-wide digitalisation. Additionally, the SITAS terminal management system will also be on display. It is one system for all types of installations, offers a variety of software tools for managing stock inventories, orders and reports and is efficient, flexible, precise and completely automated. Also, the XHQ operational intelligence solution will be present. It enables better decision-making and improved business performance, based on the ready availability of real time status and performance metrics throughout the organisation.

Visit Siemens at:

STAND B8

REGISTRATION NOW OPEN

TSA

Tank Storage Associa on

2017 TANK STORAGE CONFERENCE & EXHIBITION 28TH SEPTEMBER AT THE RICOH ARENA Visit our new website at www.tankstorage.org.uk for details.

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EVENTS l TANK STORAGE ASIA PREVIEW

From Sensor to Boardroom.

Smart Tank Farms

Our instrumentation and software solutions for your success Our new tank gauging instruments measure product levels with highest accuracy and reliability in every tank, and with the technology that fits best. For running your tank farm safe, smooth and successful we even offer a lot more: For example safety instrumentation as well as loading metering solutions and a completely centralized inventory management system which allows complete inventory visibility, from sensor up to the business systems. We support you to: • Protect your assets • Ensure highest safety for your staff and environment • Be compliant with regulations • Increase efficiency and revenues Experience our solutions for your tank farm or terminal: www.endress.com/ims

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EVENTS l TANK STORAGE ASIA PREVIEW

Timm Elektronik will be showing its range of products under the slogan, ‘single source – prefect solution’. These products provide safe loading and unloading of inflammable liquids as well as qualified access control to hazardous areas in the petrochemical and chemical industry. All Timm products are developed utilising an intelligent explosion protection concept (IEPC) that is unique to the company. The IEPC concept allows easy commissioning and maintenance while adhering to highest safety standards. Together with their Singaporean business partner OSK Industrial and their software partner Implico, Timm will be presenting three of its products at this year’s event: the 2017 Tank Storage Award winning EUS-2 overfill prevention controller, the new SEK-3 marine grounding system for potential equalisation of oil tankers and the well-known EKX-4 grounding control device for grounding of tank trucks, silo trucks, railcars as well as containers, barrels and similar vessels.

Visit Timm Elektronik at:

STAND E14

UL International Singapore will be showcasing its UL 142, which includes requirements that cover steel primary, secondary and diked type atmospheric storage tanks intended for noncorrosive, stable flammable and combustible liquids that have a specific gravity not exceeding 1.0 in aboveground applications. UL 142 includes requirements for tanks fabricated in a combination of various shapes (cylindrical, rectangular or round) and orientations (horizontal, vertical) with or without multiple compartments. UL 142 covers shop fabricated tanks only. It does not cover portable tanks intended for transporting flammable or combustible liquids (such as shipping containers), or mobile use applications (such as mounted on a trailer).

Visit UL International Singapore at:

STAND D19

Verwater provides a solution for a range of tank related issues based on its range of services and experience. The integrated service provider offers: • Unique combination of in-house disciplines: Tank construction and tank maintenance, jacking, civil works, protective coating, piping and mechanical works, valves, turnarounds. • Design and engineering department: It has extensive knowledge and experience with EEMUA 159, API650, API653, NEN14015, PGS-15, 29 and 30, NRB, SEVESO and other relevant guidelines, regulations and codes. • Experienced project management organisation: Multidisciplinary project management, HSE, quality control, transportation and shipping, procurement management, project construction, pre-commissioning and testing • Multiple prefab shops at strategic locations. • Specialised innovative equipment: Tank jacking equipment, excavation and transportation equipment, automated welding equipment, blasting robots, hydro cutting equipment • Over 90 years of experience: with all disciplines, all over the world, for all types of tanks and industrial installations.

Visit Verwater at:

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STAND A20

Viscoy is a specialist supplier of remote visual inspection (RVI) equipment. RVI or visual testing (VT) is a simple but an integral technique in non-destructive testing (NDT). With the push to extend the useful life of aging assets, RVI is playing an increasingly important role in both predictive and preventive maintenance regimes. Viscoy works closely with a range of manufacturers to offer an extensive range of RVI and camera equipment that addresses a broad spectrum of visual inspection applications. Its product portfolio includes: • Industrial endoscopy systems from IT concepts (Germany) • Robotic crawler and push camera systems from RIEZLER Inspektionsysteme (Germany) • Pan, tilt and zoom camera systems from Sensor Networks (US) • ATEX camera systems from HydroVideo (France) • High temperature endoscopy systems from CESYCO (France) In addition to standard systems, Viscoy also offers bespoke inspection solutions designed to address unique inspection requirements of its customers.

Visit Viscoy at:

STAND E10

Wiese Europe is specialised in the production, maintenance and revision of loading arms (used for the transportation of gas, fluids and food oils in tanker trucks, train wagons or ships) as well as security systems for chemistry, petroleum chemistry and the food industry. Security systems consist of folding stairs and safety cages in different varieties. Its products can be delivered as a standard or be engineered custom made according to the loading application.

Visit Wiese Europe at:

STAND C1

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EVENTS l TANK STORAGE ASIA PREVIEW

10th ANNUAL NATIONAL ABOVEGROUND STORAGE TANK CONFERENCE & TRADE SHOW

Moody Gardens | Galveston, Texas | September 13-14, 2017

F R E E TR A D E S H OW • Conference Sessions • Free Trade Show • NACE Conference Session • Welcome Reception

NISTM

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

NATIONAL INSTITUTE FOR STORAGE TANK MANAGEMENT

• Cocktail Mixer on the Trade Show Floor • Golf Tournament • Walk-Ups are Welcomed

www.NISTM.org | 800.827.3515 101 International 011.813.600.4024

TECHNICAL FEATURES l XXXXXX XXXXXX

OPSLAGTANKS 2017 The annual knowledge and networking event for all tank and terminal professionals in the Benelux

What to expect in 2017 » » » » »

The latest highlights in tank and terminal activities, economic and political impact on the industry Digitalization and Cybersecurity Innovation results and projects in the tank terminal industry Practical cases with the latest news about design, construction, inspection, maintenance and management Straight forward and future orientated: The ‘sustainability agenda’ for tank storage

Opslagtanks 2017 will be a mix of various high-level speakers and tank- professionals, discussing exciting new developments and subjects. Including: » Willem van der Zon – Royal Vopak » Henk Langenberg – Ministry of Infrastructure and the Environment » Cal Leeming – Lyons Leeming » Rien Olijve – Zenith Energy Management » Nicole Kroon – Director of Work & Income and Director Major Hazard Control, Inspection SWZ, Ministry of Social Affairs and Employment » Ruud Melieste – Corporate Strategist, Port of Rotterdam

Ticket 2 day conference Opslagtanks: €1999,- excluding VAT More information? Contact Tom Jansen via t.jansen@iir.nl Becoming a partner? Contact Sanne Jansen via s.jansen@iir.nl

Partners:



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Data 8 & 9 november 2017



Location Carlton Oasis Hotel, Spijkenisse



Website iir.nl/opslagtanks

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

EVENTS l TANKBANK CARTAGENA

CONVERSATIONS IN

C A R TA G E N A The 3,000 year old city is one of Spain’s leaders when it comes to bulk freight and a growing economy is ensuring more business for the country

oasting fourth position within Spanish ports in terms of volume of goods handled, the Port of Cartagena is a leader in Spain when it comes to bulk freight. The port, which handled more than 32 million tonnes in 2016, was the setting for the 14th annual Tankbank meeting, which saw professionals from across the industry gather to debate how current market trends would impact the tank terminal sector. Kicking off the first day of the conference, Antonio Sevilla, chairman at the port, explained that the port experienced an increase of 8% throughput thanks to significant investments being made in the port and surrounding area – including the expansion of a nearby refinery. He added that the port has ‘solved many problems that other Spanish ports experience.’ Andrew Bonnington, editorial director for Platts then gave a detailed overview of current market dynamics, including the effects of OPEC’s production cut as well as how the refining sector has picked up and overall product trends. He said that OPEC’s production cap, instigated in January, has been negative when you consider oil prices, which are currently hovering around $50 per barrel. Likewise, the impact on stock levels has also been negligible as the US continues to ramp up production. He said that while Saudi Arabia and Russia have taken the lead with compliance, a lasting deal is not easy because a lot of members are ‘hurting very badly’. However the refining picture is looking very healthy in contrast to four years ago in Europe, Bonnington told delegates. This is thanks to a drop in the oil price coupled with growing

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demand for refined oil products. In fact, from 2015, petrol is now the most profitable product for refiners to product. ‘Petrol is the driving force,’ he said. ‘There are structural weaknesses in diesel due to increasing supply and a decline in diesel car sales.’ Looking at the chemical markets in the Mediterranean and what the future may hold, Mike Perkins, head of global consulting at ICIS Consulting highlighted that petrochemical markets are growing between 50% and 70% higher than GDP growth rates. As a result, he said that more oil streams will be diverted away from petrol to fuel petrochemical feedstocks Describing the global chemical picture, Perkins explained that India has emerged as a powerful force in the petrochemical market but that global trade has been dominated by China. ‘But Italy and Turkey are significant importers of petrochemicals and that import dependence will grow,’ he said. ‘Turkey remains one of the fastest growing markets in Europe.’ Delegates were also given an overview of Repsol’s Cartagena refinery, an introduction to the ILBOC lubricant blending facility – a joint venture between SK and Repsol and the LNG industry in Spain before enjoying a boat tour of the port and a traditional Spanish lunch. In the evening, delegates were given an exclusive walking tour of the city’s Roman theatre ruins, complete with a reenactment of a Roman battle before enjoying dinner, drinks and traditional Spanish music and flamenco dancing at Restaurant La Catedral. On the second day, following a morning of presentations about the bioenergy sector and environmental cost benefit analysis of bulk storage facilities, delegates were given a tour of Repsol Refinery Escombreras as well as the naval museum.

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2017 API TANKS, VALVES, AND PIPING

CONFERENCE AND EXPO OCTOBER 23-26 | SEATTLE, WA

SHERATON SEATTLE HOTEL The 2017 API Tanks, Valves, and Piping Conference and Expo will give attendees an opportunity to learn about new and existing industry codes and standards, and to hear about emerging trends from industry experts. This two-day conference offers over 50 sessions addressing the needs of individuals involved in production systems, pipelines, terminals, refining and chemical manufacturing, and storage facilities. Each day focuses on presentations relevant to upstream, midstream, and downstream. Co-Located with the API Safe Tank Entry Workshop

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EVENTS l ARGUS MEDITERRANEAN STORAGE & LOGISTICS REVIEW

STORAGE ON THE PEARL

OF THE ADRIATIC

his year’s Argus Mediterranean Storage & Logistics conference was set in the beautiful city of Dubrovnik in Croatia. Chris Judge, VP for crude and products at Argus, opened the event by giving an overview of the current status of the crude and product markets. ‘$50 is a reasonably good marker of where the oil price is going to stay,’ he explained. ‘The market is constantly balancing at the moment and we’re moving towards a period of equilibrium, barring a major geopolitical event.’ Judge also asked the question as to whether peak petrol demand is in sight. ‘The US has responded to the lower petrol prices by driving a lot more,’ he explained, ‘so demand has increased. However there’s only so far people can drive and this demand is now tapering off.’ Another big issue at the moment is the 2020 cap on sulphur content in marine fuel oil, set at 0.5% by the International Maritime Organisation. Ship owners have three options to be able to meet this requirement: switch to more expensive, higher-quality low sulphur marine fuel; invest in emissions-cleaning systems called scrubbers; or switch to alternative fuels, such as LNG. Of the three options, switching to low sulphur fuel oil is the cheapest and the route over 50% of the industry is expected to take. The challenge, however, is that if marine gas oil demand increases by 100 million tonnes, only half of that amount is currently available. ‘The industry is basically relying on

non-compliance to account for a shortfall of 25 million tonnes, which isn’t the best strategy,’ Judge light-heartedly told the audience. Speaking about the state of the refining sector in Europe, Marco Schiavetti, CEO of Saras Trading, explained that the outlook is still not looking very bright. ‘Between 2010-2014 we lost almost 20% of product consumption in places such as Italy and Greece,’ he explained. The situation has improved with the lower oil prices but the refinery business in Europe still faces huge challenges and will always be

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at a competitive disadvantage compared to the Middle East. The refining industry has been going through a period of consolidation with a 2.3 million barrels per day capacity reduction since 2009. STORAGE IN THE MEDITERRANEAN Session two of the event brought together representatives from VTTI, Vopak Terminal Algeciras and CLH to discuss their developments plans in the Mediterranean region. VTTI had given delegates a tour of the

ATT in Ploce, Croatia

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EVENTS l ARGUS MEDITERRANEAN STORAGE & LOGISTICS REVIEW

terminal the previous day and Yuri Ouweneel explained the company’s newly developed terminal. At the end of 2016, VTTI completed phase 1, consisting of 50,000m3 of capacity for clean petroleum products. Phase 2 will deliver over 200,000 m3 of petroleum storage as well as 60,000m3 of LPG storage. This will be the largest new LPG storage project in the Adriatic. In the future there is a possibility of phase 3, which could add an additional 100,000m3 of capacity for petroleum products. The terminal is located at the port of Ploče, which is the main deepwater import hub for the Balkan region. The port has plans to dredge to 10.6m draft from its current 10.2m

to improve access further. Peter van der Brug, managing director at Vopak Terminal Algeciras then shared his experiences of owning storage capacity in the Mediterranean region. ‘Vopak’s strategy has completely changed in the last 25 years,’ van der Brug explained. ‘We realised it wasn’t possible to be an integrated service provider and offer absolutely everything including waste management services and so on, so now we focus on storage terminals located at seaports.’ Vopak is proud of the fact it is entirely independent and never owns any of the products it stores, so can’t be seen as competing with its customers.

think tank The smartest alternative in tank level measurement. The new Total Tank Level System. Made of durable polymer and stainless steel, this rugged tank probe offers total and interface level sensors, five temperature sensors and advanced magnetostrictive technology. With lengths up to 50 feet, it is ideal for oil, oil/water, condensate or petrochemical applications. It is the most accurate, cost-effective alternative to flexible stainless steel cable probes. This product model is also available in a rigid 316 SS version. See them both at drexelbrook.com.

Now available with Modbus, dual 4–20 mA and HART outputs

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The company is equally proud of its total injury rate (total injuries per 200,000 hours worked), which is just 0.29% and its lost time injury rate (total injuries leading to lost time per 200,000 hours), which is just 0.13. Its terminal in Algeciras has a total capacity of 403,000m3. It started as primarily a bunkering facility as it’s located within Europe’s second largest bunkering market but due to its flexibility, the terminal adapted and now 50% of it is used for trading. Van der Brug said the company is now looking to adapt the terminal further and convert part of it to cater for the increase in demand for marine fuel oil to meet the 2020 sulphur specifications. Carlos Molina, VP for strategy and business development for CLH then spoke about its terminals in the region. Molina made an interesting point that CLH in Spain has a co-mingled system – so you can enter your product in one city in Spain and take it out almost instantly someone else – just one of the ways CLH offers maximum flexibility to its customers. LPG Moving onto the LPG market, Kristen Mueller, senior manager for consulting services at Argus, talked about the fuel’s supply and demand implications. LPG is either used for home heating, for vehicle fuel or as a feedstock in the petrochemical sector but 40% of overall demand for LPG is for the residential sector. It must be pressurised or refrigerated to stay as a liquid to be stored efficiently. Global LPG production stands at 300 million tonnes and is concentrated in the US and the Middle East. Its production has increased 25% since 2010, largely due to the shale boom. Global LPG consumption is mainly concentrated in Asia. The Asia Pacific region’s demand has grown 38% from 2010-2016. North America is the only region where demand has fallen. Demand in a number of Mediterranean markets such as France and Greece has increased in recent years, due to price and economic issues. Turkey and Italy, for example, have long promoted LPG as a transport fuel. Algeria produces around half of the LPG in the region. LPG consumption in the Mediterranean is forecast to decline over the next 10 years, as several of the markets are already saturated. Supply will continue to increase. The disparity between supply and demand means more terminals will be needed, particularly to tap into sea-borne trade, however Mueller noted that some Mediterranean markets such as France, Spain and Turkey for example, already have excellent LPG storage and logistics infrastructure.

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TECHNICAL FEATURES l XXXXXX XXXXXX

AUGUST/SEPTEMBER 2017 VOLUME 13 ISSUE NO.4

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ADVERTISERS’ INDEX

Adrotec 84 Advanced 3D Laser Solutions

Inside Front Cover

Ametek 106 API 2017 Arabian Chemical Terminals Argus Africa

104 Outside Back Cover 97

AUMA 61 Bechtel 95 Blackmer 86 Brodie 65 Bulk Liquid Storage 2017

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Cashco 56

STORAGE IS GETTING SOCIAL

What the storage terminal sector has been saying on Twitter. Follow @tankstorageinfo for the latest news & developments and @TStorageAwards for more about our global awards ceremony and gala dinner! @TankerTrackers Though the US Crude Oil storage shrinks slowly, it rises off the Florida coast at the Bahamas Buckeye Terminal; a 26.2M barrel site. #OOTT

Denso 91 Diorca Industrial

Endress and Hauser

Fenelon 21 Fort Vale

@EnergyPointInfo IEA found another 230 million barrels of oil in storage that will need to be drained before balance is restored.

IMHOF 81 Inter Terminals

InterTank 15 Lift Off Pipe

MFE Enterprises

Midwest Steel

Milton Roy

MTS Sensors

NETZSCH 59 NISTM 101 Nordic Storage

Oiltanking 12

@genscape 1st #Cushing build in 3 mos for WE 8/4 was related to lower #Seaway #Pipeline outbound flows: #CrudeOil #oil #OOTT

@ENOC #DidYouKnow A Boeing 777 can fit into one of the crude oil storage tanks run by our partners’ VHFL’s Fujairah?! Yes, they are massive!

Opslagtanks 102 Oreco 93 Port Of Amsterdam

Protego 72

@georgikantchev There are 230 million more barrels of oil in storage than previously thought, delaying the recovery #oott

Rosen 62 Rotary

Front Cover, 53

SA Fire

Sammi Machinery

Soliflo

54,55

Solventas 32

@BCG Fuel storage capacity in #Mexico is constrained, but w/ major infrastructure investment in the pipeline for 2020

Symex 79 Tank Connection

Tank Design House

Tank Storage Asia

Tank Storage Association

TechipFMC 57 Technodyne 3 The Tank Tiger

Vacano 90 Verwater 23 WOYT Industries

CHEMICAL STORAGE SUPPLEMENT Port of Tarragona Tank Storage Germany

Front Cover 6

@JavierBlas2 Shell Q2 will be remembered as either: -- the day Shell led Big Oil out of oil -- the day Shell made a huge strategic mistake #OOTT #oil @Samir_Madani China is financing $1.1b to build up Hambanthota port. If they expand oil storage, it would be a brilliant hub between west and east. #OOTT

@EnergyPhilFlynn Oil production could break 1970 record next year, but more oil won’t bring the price operators need #GoogleAlerts

TEPSA 1 Kanon

Outside Back Cover

Tank Storage Magazine (ISSN 1750-841X) is published six times a year (in February, March, May, August, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. The 2017 US Institutional subscription price is $243. Airfreight and mailing in the USA by Agent named Air Business, C/O Worldnet Shipping USA Inc., 155-11 146th Street, Jamaica, New York NY11434. Periodical postage pending at Jamaica NY 11431. Subscription records are maintained at Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK. Air Business Ltd is acting as our mailing agent.

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EVENTS l CALENDAR

EVENTS 2017/2018 SEPTEMBER 2017 13th - 14th September

NOVEMBER 2017

MEDIA PARTNER

NISTM

29th - 30th November 2017

OFFICIAL PUBLICATION

Tank Storage Germany

Galveston, Texas The show will be celebrating its 10th anniversary with a special networking reception. www.nistm.com 19th September

MEDIA PARTNER

7th Gulf Intelligence Energy Markets Forum

Hamburg Messe, Hamburg Now in its 4th year, Tank Storage Germany is the industry’s dedicated exhibition and conference for the German bulk liquid storage industry. The show brings together suppliers with senior level executives, terminal managers and key decision makers from the region’s oil majors, ports, terminals and institutions to meet and place business. www.tankstoragegermany.com

Fujairah, UAE 27th - 28th September

OFFICIAL PUBLICATION

Tank Storage Asia

20th - 22nd March 2018

Marina Bay Sands, Singapore The two day exhibition and conference returns to the Marina Bay Sands featuring leading international manufacturers and suppliers as well as industry experts from across the supply chain. www.tankstorageasia.com 28th September

MEDIA PARTNER

Tank Storage Association

OFFICIAL PUBLICATION

StocExpo Europe Ahoy Rotterdam, Rotterdam, The Netherlands The 14th edition of StocExpo Europe will take place in the heart of the ARA region, Rotterdam. The three day conference and exhibition is the largest international event for the bulk liquid storage industry. www.stocexpo.com 20th March

Ricoh Arena, Coventry, UK

OFFICIAL PUBLICATION

Global Tank Storage Awards

www.tankstorage-event.org.uk 30th September - 3rd October

MARCH 2018

Cruise Terminal, Rotterdam

MEDIA PARTNER

EPCA 51st annual meeting

The second awards ceremony and gala dinner will recognise and reward storage excellence, with 12 different awards categories. www.tankstoragemag.com/awards

Berlin, Germany www.epca.eu

27th – 29th March

OFFICIAL PUBLICATION

NISTM 2018 Orlando, Florida

OCTOBER 2017 11th - 13th October

www.nistm.org OFFICIAL PUBLICATION

Argus Africa Storage & Logistics Conference Cape Town, South Africa www.argusmedia.com/events 23rd - 26th October

17th - 18th April 2018 MEDIA PARTNER

API Tanks, Valves & Piping Conference & Expo Sheraton Seattle Hotel, Seattle, Washington www.api.org 25th - 26th October

APRIL 2018

MEDIA PARTNER

OFFICIAL PUBLICATION

StocExpo Middle East Africa Dubai World Trade Centre, Dubai Situated at the heart of the major oil trading hub, this two day exhibition and conference is perfectly placed to allow storage professionals from across the area to capitalise on this growing market and maximise their business potential. www.stocexpomiddleeastafrica.com

Asian Downstream Summit Sands Expo & Convention Centre, Singapore

JUNE 2018

www.downstream-asia.com

11th - 13th June 2018 25th October - 26th October

MEDIA PARTNER

Bulk Liquid Storage Europe 2017 Dubrovnik, Croatia

SILVER SPONSOR

ILTA Houston, Texas www.ilta.org

www.wplgroup.com

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TRUSTED STORAGE & LOGISTICS PROVIDER TRUSTED STORAGE &

TECHNICAL FEATURES l XXXXXX XXXXXX

TRUSTED & IN PARTNERSHIPSTORAGE WITH SUTTONS ARABIA LOGISTICS PROVIDER LOGISTICS PROVIDER IN PARTNERSHIP WITH SUTTONS ARABIA IN PARTNERSHIP WITH SUTTONS ARABIA

With over 85,000m3 of liquid With over 85,000m3 of liquid bulk storage inin Saudi Arabia bulk storage Saudi Arabia With over 85,000m3 of liquid and terminals in Jubail and and terminals inSaudi JubailArabia and bulk storage in Yanbu, ACT, Yanbu, ACT,in inpartnership partnership and terminals in Jubail and with Suttons is the the with Suttons Arabia, is Yanbu, ACT,Arabia, in partnership perfect choiceArabia, when looking with Suttons is the perfect choice when looking importchoice andexport export when your looking totoperfect import and your products safely and efficiently. to import and and export your products safely efficiently. Contact us to find out how products safely and efficiently. Contact us to find out how can help tofind leverage Contact us to out how wewe can help to leverage your chemical we can help tobusinesses leverage your chemical businesses inyour the chemical Middle East. Suttons businesses inArabia the Middle East. Suttons completed in the recently Middle East. Suttonsa Arabia recently completed container freight Station andaa a Arabia recently completed container Station new drumfreight filling theaa container freightstation Stationatand and new drum filling port ofdrum Jubail. new fillingstation station at at the port Jubail. port of of Jubail.

Find out more at Find out more at www.ArabianChemicalTerminals.com Find out more at www.ArabianChemicalTerminals.com

www.ArabianChemicalTerminals.com E: info@arabianchemicalterminals.com T: +966 12 652 0000 E: info@arabianchemicalterminals.com E: info@arabianchemicalterminals.com T: +966 12 652 0000

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