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WORD FROM THE EDITOR

BLOWING OUR OWN TRUMPET THIS ISSUE OF STORAGE TERMINALS MAGAZINE is the largest ever; we hope you enjoy leafing through it during the course of the StocExpo, TANK WORLD Expo, NISTM and Tank Bank events. For those of you not attending these great events, well naturally we hope you enjoy it equally as much. The tank storage market has boomed over the past decade and looks set to continue on its growth path, at least for the next 10, maybe 20, years. Dramatic changes in global oil and chemical product flows dictate that there will be a need for sufficient storage capacity to act as a critical supply chain buffer for the foreseeable future, and for now there seems to be no shortage of capital available to slate the thirst for tankage. Not all investments, of course, will automatically produce golden returns. As Greenergy CEO Andrew Owens told this year’s Platts European Oil Storage conference, it’s all down to location, location, location! But for canny operators out there respectable investment opportunities exist. At Storage Terminals Magazine we will strive to cover these developments as thoroughly as possible, while also keeping everyone abreast of the very latest technologies to assist operators in their joint quest for optimised and safe terminal management. See you all in Rotterdam to start with!

Neil Madden EDITOR

STORAGE TERMINALS MAGAZINE

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her customers.

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

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CONTENTS

12

77

118

IN THIS ISSUE 12 NEW LIFE IN THE OLD CONTINENT Europe’s ports are becoming increasingly important sites for tank storage as the sector expands beyond supply chains to trading hubs 18 WELL-RECEIVED Wärtsilä has signed a contract to supply an LNG terminal in Finland 20 A RIGHT CONCOCTION! Europe’s policy on the renewable mix in transport fuels is in disarray 22 VAMOS! Spain’s CLH is investing at home and now abroad 26 SURVIVING IN A BACKWARDATED MARKET Amsterdam was the venue for this year’s Platts European Oil Storage conference held in late January 32 MODELLING THE RETURNS Neste Oil has devised a modelling system to assess the viability of tricky industrial investment decisions 35 KEYSTONE XL - NOT QUITE THE FINAL HURDLE A favourable environmental report on

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Keystone XL looks likely only to spark fresh litigation and protests 43 TANK CAR OF THE FUTURE In the light of recent – and in one case, deadly – crude by rail accidents moves are afoot to improve the safety of rail tank cars 47 DOWNSTREAM NEWS The latest news from the upstream and downstream sectors 53 WORLD TERMINAL NEWS All the news from the global terminal sector 72 DON’T DRINK THE WATER The US Chemical Safety Board has released preliminary findings from its investigation into the Freedom Industries chemical tank spill 77 COMAH – TIME TO ACT NOW A UK expert in COMAH legislation urges pipeline and logistics operators to act now over fuel re-categorisation 82 GAUGING THE WAY FORWARD New tank gauging technology takes overfill prevention to the next level, writes Carl-Johan Roos

91 MIDDLE EAST – THE CENTRE OF THE WORLD A preview of Tank World Expo taking place on 14-15 April 2014 in Dubai, UAE 99 AGAINST THE GRAIN Descartes’ Customs solution supported a business transformation at Botlek Tank Terminal 101 STOPPING THE LEAKS Leading pipeline operator trade bodies have launched a safety excellence initiative as North America scrutinises the transport of hazardous materials 102 TECHNOLOGY & AUTOMATION What’s new in process industry technology & equipment 118 AHOY THERE FOR STOCEXPO What to expect at StocExpo taking place on 18-20 March 2014 at Ahoy Rotterdam 127 ACROSS THE POND The latest updates on regulatory & legislative issues and other industry developments across America 143 UPCOMING EVENTS Major conferences and exhibitions this year for the global storage business

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11254 Targa_NatAd1_DPS 297x420_Asian WealthHR.pdf

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To learn more about Honeywell’s Fusion4 family visit www.honeywellenraf.com Š 2014 Honeywell International Inc. All rights reserved

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The world’s top terminal operators rely on Honeywell Enraf to ensure profitable terminal operations. The Fusion4 portfolio of hazardous area controllers takes that commitment to the next level. The highest density stream control available and widest connectivity options ensure maximized CAPEX. Scalable and modular architecture provides future-proof flexibility. Human centered design and localized, intuitive interfacing make fuelling operations safe, fast and error free. Fusion4 – welcome to the family.

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N EW LIF E I N T HE O LD CON TI N EN T

Antwerp’s chemical cluster is big driver of the port’s total throughput

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EUROPEAN PORTS

Europe’s ports, particularly in the west, are becoming increasingly important sites for tank storage as the sector expands beyond simple supply chains to trading hubs

W

ORLDWIDE TRENDS in refining and trade flows of both crude oil and refined products have transformed the landscape for European ports over the past decade. The travails of the refinery sector are well known as volumes of crude oil shipped to plants in Western Europe decline in importance compared with refined product imports from the giant plants being constructed in the Middle East and other emerging markets. To compound this long term trend low utilisation rates have accelerated the significant reductions in capacity in OECD countries since the start of the global recession. All the evidence today points to a greater shift over the next 10-20 years from production and simple oil product supply chains to more trading and speculation worldwide. Of course, the long running contango oil market of a few years back helped boost demand for trading, and consequently, storage. Today’s backwardated market might seem less promising, but some analysts point out that what is equally important to oil trading is not just relative margins

between spot and futures rates, but plain movement in prices and benchmarks that can create opportunities for arbitrage. That is also good news for storage as one of the basic reasons for tanking any bulk liquid is to create a buffer point in the supply chain. And if stock can be traded for speculative purposes this makes the maritime port the best place to put a tank farm. Many of Europe’s ports have benefitted from these developments since the turn of the century. Total oil and oil product throughput in leading European ports has grown by 20 percent since 2002, although this overall figure masks wide variations between individual ports. But just as significant cargo transfers before final consumption have increased from an average of three times to 10 times. The major European ports to benefit from this growth have been in the Antwerp-Rotterdam-Amsterdam (ARA) range, although market watchers increasingly like to include the smaller Benelux ports of Ghent and Zeeland Seaports in this group. These ports seem to be the favoured locations for traders, largely because of their deepsea access, and depth of technical knowledge that comes with growing industrial clusters. Also

Fig 1: Oil products are a large market for all ports in the ARA range

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EUROPEAN PORTS critically important are flexibility and service levels, as shippers need to be sure that vessels will be handled efficiently to avoid demurrage penalties. Consequently, these ports are now highly dependent on these trades. Speaking at the Platts European Oil Storage conference in Amsterdam in January, Michiel Nijdam, senior researcher in port economics at Erasmus University of Rotterdam, displayed a graph showing the proportion of liquid bulk and mineral oil products at the five ports in question. (Fig 1 on p11) Rotterdam accounts for some 60 percent of tank capacity in ARA range, but interestingly Nijdam said that only 20 percent of this capacity could be considered as independent or purely commercial storage for oil products. Rotterdam seems heavily dependent on captive capacity for refineries – not a sector with the rosiest future. In contrast, both Antwerp and Amsterdam have seen significant investment in independent tank storage. The question now is how long demand will warrant new capacity investments. In short, Nijdam said a slight increase in worldwide oil consumption is expected for the next 25 years, and combined with global shifts in supply and demand generating more worldwide flows of oil products trade in every part of the world is likely to grow over the next 20 years. And with more trade comes greater importance of logistics. He predicted that the logistics of oil products could even start to look more like other cargoes, such as automotive and containers. In this comes to pass then timeliness and flexibility in handling and storage will become even more important. He saw a positive future for ports in the ARA range until 2035, after which the outlook could be more uncertain, as the phasing out of fossil fuel for transport begins to in earnest likely depressing demand for tank storage. Therefore if a trader of finance house wants to investments in tank terminals it should probably be before 2020, he concluded.

LIQUIDS DRIVE ANTWERP Looking at the latest throughput figures for a number of European

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ports, it is clear that Port of Antwerp continues to enjoy a healthy position in terms of bulk liquids. The port posted final throughput for 2013 of 190.8 million tonnes, an increase of 3.6 percent compared with 2012. The main driving force behind the growth was liquid bulk, with container volumes being slightly down as a result of the continuing recession. The volume of liquid bulk rose over the past 12 months by 31.4 percent to almost 60 million tonnes. Imports and exports of oil derivatives

Between 2008 and 2012 Amsterdam’s tank capacity expanded by 12 percent to 6.3 million cbm.

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Left: Rotterdam’s storage is heavily linked to existing refineries; Right: Amsterdam Amsterdam is deepening its channels for larger ships; Below left: A new pipeline now connects the Rubis Dunkirk terminal with the French national network

were well up, by 34.8 percent, ending at 43 million tonnes. The amount of chemicals and crude oil handled also rose sharply. Contrary to most port’s experiences the volume of crude oil expanded by a massive 83.4 percent to 4.7 million tonnes, while chemicals were up 9.7 percent, finishing at 11.2 million tonnes. Belgium is the most important European Union distribution hub for chemicals from the Middle East, according to a report published at the end of 2013 by the Gulf Petrochemical Association (GPCA). Belgium’s share of GPCA exports to Europe has more than doubled since 2002. Total exports of chemical products from GPCA countries rose from US$7 billion dollars in 2002 to $52.7 billion in 2012.

much the same as the previous year at just over 33 million tonnes. In addition to the weaker the lower volume was also due to refinery maintenance, the port added. “The refineries in the Rotterdam complex had to cope with low demand for refinery products in Europe, given a structural overcapacity. At the same time, competition in the world market for such products is increasing,” the port said. These were some of the reasons for holding large-scale refinery maintenance shutdowns. Oil products’ trade “was lively for the majority of the year,” the port said. Imports of oil products rose 4.2 percent to 46.8 million tonnes while exports dropped 1 percent to 36.4 million tonnes. Other liquid bulks saw a 0.2 percent drop in overall throughput, with chemicals “still suffering from the crisis” and higher import duties resulting in a fall in biofuels’ imports. A positive factor was the low price of palm oil, which encouraged stock building. LNG throughput rose 25 percent year on year but due to the high prices of products, imports from outside Europe are still low. Around 700,000 tonnes of LNG was handled “thanks partly to regular imports in small vessels from Norway and re-export.”

ROTTERDAM DOWN Crude oil handled by Rotterdam was down 7.4 percent to 91 million tonnes, due to weaker demand, the port stated. Mineral oil products were unchanged at 81 million tonnes, while LNG was up 35 percent to 756,000 tonnes. Other liquid bulks remained

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AMSTERDAM BULKS UP Throughput of liquid bulk cargo at Port of Amsterdam fell by approximately 5 percent in 2013 to 41.1 million tonnes. Nevertheless the port has announced plans to invest 100 million over the next 10 years in terminal ex-

pansion projects to adapt to emerging shipping trends in the ARA region. These trends include the arrival of larger vessels with needing deeper draft. Speaking at the Platts European Oil Storage conference in Amsterdam, Lex De Ridder, cluster energy manager of the Port of Amsterdam said: “We are going to see ship sizes grow, particularly with imports of diesel in bigger ships. We planned six to seven years ago to deepen the draft of our port, as we expect more Aframax and Suezmax size vessels, which are greater than Amsterdam can handle.” A new lock in 2019 is project, with a new lightering facility before the lock in 2018. Between 2008 and 2012 Amsterdam’s tank capacity expanded by 12 percent to 6.3 million cbm. In the meantime, the port, which was corporatised last year to give it greater independence from local and national government, is fast becoming a major hub for LNG fuelling. Just before Christmas 2013 inland navigation vessels were given the possibility to bunker LNG in Amsterdam. Greenstream was the first ship to moor alongside the Amerikahaven quay to bunker with LNG. Built by Peters Shipyards, Greenstream is operated by InterStream Barging and has been chartered by Shell which also supplied the fuel. Port of Amsterdam has designed the ‘Groene kade’ (Green Quay) in Amerikahaven to enable safe bunkering from a tanker truck into an inland navigation vessel or small ocean-going vessel. The French port of Dunkirk lies just

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EUROPEAN PORTS outside the ARA range but is an increasingly important port for France’s energy requirements. In 2013 refined products showed a decrease of 7 percent with a volume of 5.2 million tonnes and other bulk liquids were down 29 percent at 900,000 tonnes. The main reason for the drop was the shutdown of a plant run by biodiesel producer Diester Industrie in the Dunkirk area which affected traffic in the port by more than 250,000 tonnes. However, January this year saw the completion of a new oil pipeline between the Rubis terminal in the Eastern Port, on Pier 5, which is now connected with the national pipeline grid (TRAPIL network) in the Central Port, near the Glencore plant. This new link, which necessitated directional drilling below many industrial and port sites, will enlarge the hinterland served by Dunkirk in petroleum products, particularly towards eastern France. Work is also progressing on a new LNG terminal which will be one of the most important in France. This is scheduled to be commissioned in 2015. Liquid bulks rose 1 percent to 47.5 million tonnes at the combined French ports of Le Havre, Rouen and Paris (known as HAROPA). Crude oil was up 6 percent at 23.8 million tonnes, with the upturn happening mainly in the second quarter, of 2013 especially after the reopening of the Total refinery. Refined oil products were down 7 percent to 18.3 million tonnes. The ExxonMobil refineries in Port-Jérôme and Total in Gonfreville-l’Orcher carried out heavy industrial process investments during the year, and in addition turned towards the domestic market in late 2013 owing to depressed refining margins. This had the effect of slowing trade in refined oil products.

GOING SOUTH On the Mediterranean, total 2013 throughput at Marseilles Fos confirmed containers, steel industry bulks, LNG and cruise traffic as the major growth drivers. In contrast, a mounting decline in crude oil and petroleum volumes pegged overall cargo to 80 million tonnes for the year, down 7 percent on 2012. Oil & gas still accounts for more than half the cargo handled at Mar-

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Preem’s investment in Gothenburg is expected to double the production of diesel with renewable content

GOTHENBURG’S TALL STORY Going against the trend of refinery shutdowns in most European seaports, Swedish oil major Preem has decided to invest US$300 million in building a refinery in Port of Gothenburg. This investment makes it possible to double the production of diesel with renewable content - a fuel that is expected to replace fossil fuels in vehicles more and more. Since 2010, Preem has produced a diesel based on tall oil, a by-product of the forestry industry, but which has the same characteristics as standard diesel. Tall oil is shipped from Pitea to Gothenburg where it is processed with fossil diesel in the Preem refinery. The final product comprises one third of the renewable content and is named Evolution Diesel. Besides pine oil, other vegetable or animal raw materials can be used in production, such as rapeseed oil. “We are very positive about Preem’s investment in Gothenburg and wholeheartedly support the development of more renewable products that is now happening in the Energy Port,” said Jill Söderwall, commercial manager of Energy at Port of Gothenburg. Preem estimates that with the investment it can double the current production volume of about 400 000 tonnes a year. The expansion is expected to be completed in autumn 2015. “Our initiative is very timely. Sweden needs a considerably larger proportion green fuels to meet government targets,” added Petter Holland, CEO of Preem. “In addition, diesel consumption has increased sharply in recent years.

seilles, one of the world’s biggest oil ports, but volumes have been eroded by the restructuring of Europe’s refinery industry. At just over 46 million tonnes, last year’s oil and gas total was 12 percent and some 5 million tonnes lower than in 2012 and 13 million tonnes worse than in 2011. The slump in oil & gas to 46.13 million tonnes saw overall liquid bulks down by the same margin all 49.55 million tonnes. Crude imports for domestic refineries fell 4 percent to 24.46 million tonnes, pipeline deliveries to Germany and Switzerland crashed 58 percent to 2.71 million tonnes and refined products were 15 percent worse at 11.14 million tonnes. With

LPG stable (2.14 million tonnes) the only growth came from LNG – up 4 percent to 5.67 million tonnes despite the upheaval in global gas trades caused by demand from Asia and the emergence of US shale gas. Completing the liquid bulks total, chemicals and agro-products were down 3 percent at 3.42 million tonnes. Chemicals slipped 2 percent to 3.39 million tonnes, although biofuels amounted to 1.14 million tonnes of this with a 22 percent increase. In a further encouraging sign, vinyls manufacturer Kem One came under new ownership at the end of the year in a move that the port says should stabilise activity in the sector.

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make the

smart choice when transferring gas and chemical. Visit us at

StocExpo 2014

WELL– RECEIVED Wärtsilä has signed a contract to supply an LNG terminal in Finland

F

Find us on stand A28

Margate, UK t. +44 (0)1843 221521 assist@todo.se

www.todo.se

INLAND-BASED ENGINEERING GROUP Wärtsilä has signed a turnkey contract to supply an LNG receiving terminal to be built in Tornio, in northern Finland. The contract, valued at approximately 100 million, has been made with Manga LNG Oy, a joint venture between the Finnish companies Outokumpu Group, Ruukki Metals Oy, Gasum Oy and EPV Energy Ltd. It is also conditional on receiving investment support and Manga LNG’s contracts with other parties, including gas suppliers. The main user of the natural gas from the terminal will be the Outokumpu Tornio steel mill, but industries, mines, and other potential gas consumers in the region will also be served. The terminal may also eventually supply LNG to ships, such as the new icebreaker planned to operate in the Tornio and Bay of Bothnia region. “The Tornio Manga LNG terminal is a long-term infrastructure investment programme,” said Pekka Erkkilä, chairman of the board of Manga LNG. “The beneficiaries include shipping and road transport companies, power and heat utilities, as well as other industrial and mining companies in northern Europe. We appreciate Wärtsilä’s participation as a valuable partner in this project with special value-adding capabilities in this field.” The contract fits Wärtsilä’s strategy of extending its LNG experience to cover terminals. Wärtsilä has long been recognised for its gas engine technology as well as for its gas handling systems. With the Tornio Manga LNG receiving terminal, Wärtsilä is for, the first time, combining its engineering, procurement & construction (EPC) capability in power plants with its LNG gas handling technology to provide a turnkey LNG terminal. “This is a large and extremely important project, and we see the selection of Wärtsilä Power Plants to engineer, supply, and construct the new terminal as an acknowledgement of our expertise and experience in EPC project execution, in LNG handling systems, and in the use of LNG as fuels,” added says Vesa Riihimäki, president, Wärtsilä Power Plants. “The terminal will enable this clean and competitively priced fuel to be available for industrial consumers in the Bay of Bothnia region, and

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Come and visit

LNG RECEIVING

the

Innovators in loading arm

technology at StocExpo 2014 The terminal will enable LNG to be available for industrial consumers in the Bay of Bothnia region

Find us on stand A28

will further enhance the growing acceptance of LNG as a marine fuel.� The group is basing its strategy on LNG continuing to replace oil and other fuels worldwide, and so sees strong global market potential for medium-scale LNG distribution.

INFRASTRUCTURE NEED Lack of appropriate infrastructure, such as bunkering and supply chain, plus uncertainty over long term fuel availability are additional barriers for the introduction of any new fuel, according to a recent position by classification society DNV GL. In other words, owners will not start using new fuels such as LNG if infrastructure is not available, and energy providers will not finance expensive infrastructure without first securing customers. Breaking this deadlock will require a co-ordinated, industry-wide effort and the political will to invest in the development of new infrastructure. Patchwork regulations - enforced by different government bodies - and lack of standards have also slowed co-ordinated action, the report stated. Deepsea shipping needs globally available fuels and so will tend towards LNG and biodiesel. LNG uptake is expected to grow fast in the next five to 10 years, first on relatively small ships operating in areas with developed gas bunkering infrastructure where LNG prices are competitive to HFO prices. They will then be followed by larger ocean-going vessels when bunkering infrastructure becomes available around the world. Experimentation with biofuels has already started on large vessels, and preliminary results are encouraging. However, advances in the development of biofuels derived from waste or algae will depend on the price of oil & gas. As a result, biofuels will have only limited penetration in the marine fuels market in the next decade. Still by 2030, biofuels are set to play a larger role, provided that significant quantities can be produced sustainably and at an attractive price.

Kirchhain, Germany t. +49 6422 84-0 assist@emcowheaton.com

www.emcowheaton.com

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HE EUROPEAN COMMISSION has effectively been told by the European Parliament to rethink its approach to the Fuel Quality Directive (FQD), an EU law designed to reduce greenhouse gas emissions from transport fuels. The FQD applies to all petrol, diesel and biofuels used in road transport, as well as to gasoil used in non-road-mobile machinery. It targets a 10 percent reduction made up of: a 6 percent reduction in the greenhouse gas intensity of fuels by 2020, with intermediate indicative targets of 2 percent by 2014 and 4 percent by 2017; an additional 2 percent reduction subject to developments in new technologies such as carbon capture and storage; and a further 2 percent reduction to come from the purchase of Clean Development Mechanism (CDM) credits. In its draft white paper published in January, which outlines the proposed 2030 climate and energy package, the Commission included a line of text calling for an end, from 2020, of the 6 percent greenhouse gas reduction target for transport fuels. The text was jumped on by an unlikely coalition of biofuel producer bodies and environmental campaigners who argued it would effectively mean that the EU law to regulate emissions from transport fuels ceased to exist after 2020. The 6 percent decarbonisation target in the FQD and a 10 percent target for renewables in transport, mostly met with biofuels were introduced in 2009, as part of the climate and energy package. Campaign group Transport & Environment said it supports the end of the 10 percent volume target for renewables, because it currently promotes the use of biofuels that have higher emissions than conventional oil. “However, dropping the FQD is dropping one law too many,” it stated. “The decision to prematurely terminate this key environmental law was taken by the Commission, even though it hasn’t performed an assessment or consultation before proposing. This goes against the Commission rules of decision-making, which should be transparent, inclusive and democratic.”

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A RIGHT CONCOCTION! Europe’s policy on the renewable mix in transport fuels is in disarray BLAME THE TAR SANDS, AGAIN Nusa Urbancic, policy manager for clean fuels at Transport & Environment, said: “The Commission is using the climate and energy package as an excuse to quietly scrap the FQD – the best EU law aimed at lowering emissions from transport fuel. This is good news for oil companies and Alberta, with its high-carbon tar sands, but bad news for Europe in our move

towards a more sustainable transport system. We call on EU member states to reverse this decision when they discuss it at the Environment Council in March.” The European Biodiesel Board (EBB), which represents producers, wrote a position statement pointing out that transport is the most polluting sector in Europe, accounting for 25 percent of total EU CO2 emissions. “In addition to environmental con-

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FUEL QUALITY LEGISLATION

Above: Parliament said go back and think again; Left: Biodiesel interest groups claim binding targets have been shown to be right in deploying renewable sources

cerns, Europe faces an energy security gap, triggered by high dependence on fossil fuel imports and particularly diesel from third countries,” wrote Raffaello Garofalo, EBB Secretary General. “Binding targets have been shown to be right in deploying renewable sources. Industry relies on stable longterm policy framework. European institutions and Member States have the responsibility to reinforce sustainable transport with specific targets,” continued Garofalo. If biofuels targets are not confirmed post 2020, the EBB argued, investments will stop. Lack of mandatory goals will result in capital fleeing from biofuels, and especially from new expensive biofuels technologies. Thanks to both the Renewable Energy Directive and the Fuel Quality Directive, biodiesel is expected to account for 8.6 percent of overall transport consumption by 2020, the producer body claimed. “Despite uncertainties surrounding

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the ILUC debate, biodiesel investors are willing to contribute to sustainable mobility. Specific targets for 2030 would restore investors’ confidence and support the deployment of a sustainable and advanced alternative to diesel. Claiming that first generation biofuels has ‘a limited role in decarbonising the transport’ sector is simply wrong and misguiding. Biofuels are the only sector abiding by strict sustainability criteria. Should the current framework be abandoned, it would simply erase the efforts made by the industry so far,” concluded Garofalo. The EBB was also a signatory to an open letter, along with groups as diverse as Birdlife Europe, European Waste-to-Advanced Biofuels Association (EWABA), Institute for European Environmental Policy (IEEP), Brazilian Sugarcane Industry Association (UNICA), and World Wide Fund for Nature (WWF), that called on the Commission to “maintain FQD as an important tool in the post-2020 decarbonisation framework, produce a proper impact assessment and initiate a public consultation on how this policy should be improved and continued”.

IN OTHER WORDS On 5 February the European Parliament rebuked the Commission and sent a strong signal to member states about the importance of complete carbon accounting under the FQD. The Parliament said it “regrets the Com-

mission’s lack of willingness to ensure the continuation of the Fuel Quality Directive after 2020’.” MEPs called for a 40 percent cut in CO2 emissions, a 30 percent target for renewable energy and a 40 percent target for energy efficiency by 2030, under the EU’s new long-term climatechange policy. These targets should be binding, they say. MEPs also criticised the Commission’s recent proposals as short-sighted and unambitious. Parliament called on the Commission and EU countries, in its resolution adopted by 341 votes to 263, with 26 abstentions, to set a 2030 EU target to reduce domestic greenhouse gas emissions by at least 40% percent from 1990 levels. It also wants an energy efficiency target of 40 percent, in line with research on the cost-effective potential, and a commitment to producing at least 30 percent of total final energy consumption from renewable energy sources. These targets should be binding, MEPs say, and implemented through individual national targets, taking account of each member state’s situation and potential. “The price of energy seriously affects companies, industry and, more specifically, our citizens. If we want to reduce our energy imports we have to produce more in Europe, by making better and more efficient use of our resources,” said the co-rapporteur for the environment committee, Anne Delvaux (EPP, BE). “If we have a broad energy mix with greater energy efficiency, this is the best option to reduce to reduce greenhouse gas emissions, to encourage new technologies and innovation, create jobs and change our economies into greener economies.”

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TERMINAL OPERATORS

VAMO S ! Spain’s CLH is investing at home and now abroad

The new facility in Castellanos de Moriscos, Salamanca

I

T HAS BEEN AN interesting few years for Compañía Logística de Hidrocarburos (CLH). The Spanish oil storage and distribution specialist has successfully diversified its markets and invested heavily in new capacity. Although one of Europe’s largest independent terminal operators, CLH had previously not ventured outside its home base of Spain. Now, the group has signed an agreement with the Omani company ORPIC (Oman Oil Refineries and Petroleum Industries Company) to provide consultancy for the construction of a 280km oil pipeline and storage facility in Oman. The pipeline will connect several facilities with each other and make it possible to improve fuel logistics in the country. The complete project also includes the construction of other infrastructure, and will be carried out in three phases, the first of which is a pipeline to connect the Mina al Fahal refinery with Muscat international airport. A second phase involves building a connection between Mina al Fahal and the Sohar refinery in addition to stor-

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age in the vicinity of Muscat. The third phase consists of expanding that storage facility in order to increase the country’s strategic fuel reserves. This agreement marks CLH’s ambition to widen the international scope of the company; an expansion model that will include growth through the construction and acquisition of assets, and consultancy services based on its know-how developed over 85 years. ORPIC, which is owned by the government of the Sultanate of Oman and state-owned Oman Oil Company SAOC, is also a 10 percent shareholder in CLH. The two largest shareholders in CLH are the Spanish oil & gas companies CEPSA and REPSOL.

SERVING GRANADA Back in Spain, the group has reinforced the oil tanker discharge facility at the Port of Motril, which serves the Granada region, by installing three unloading arms that are larger than the previous ones and fitted with hydraulic equipment. The investment, which is located on the outer sea wall Levante dock, will improve oil discharge at the port.

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TERMINAL OPERATORS The project consisted of building a maritime station equipped with three 10ins diameter hydraulically operated unloading arms, and their corresponding connection to the product discharge lines as far as the CLH storage facility in Motril. The new infrastructure is fitted with the appropriate electrical, safety and environmental protection measures and also makes it possible for the safety of operations to be improved. CLH also commissioned a new storage facility in Castellanos de Moriscos (Salamanca). This new facility, whose construction involved an investment of more than 21 million, replaces the facility that CLH has operated in Salamanca since 1935, and will make it possible for the land occupied by CLH Aviación carried out expansion and improvement at several airport facilities the old plant to be recovered for other including Alicante, pictured here town planning uses. The new plant is located in an area known as Camino tion is highest in the areas covered by the company. Paraje Villoria, and occupies a surface area of 150,000 In recent years, CLH has invested more than 25 milsqm. It has nine tanks, with a total capacity of 76,210 cbm. lion in adapting its facilities to receive, store and distribute By opening the facility, it will be possible to improve oil biofuels, with the aim of meeting new market requirements product storage and distribution in the Autonomous Comand continuing to maintain efficiency in its logistics systems. munity of Castile and León, CLH says. This investment means that the company is playing its The plant is also connected to the Valladolid-Salamanca part in the diversification of energy consumption with more pipeline and is fitted with an automated tank truck loading environmentally friendly energy sources, while at the same area with four loading racks. Around 24,000 tank trucks time increasing the use of renewable energies. a year will load fuel at the plant, and distribute it to filling Besides this, and through CLH Aviación, CLH Group stations and other consumers in Salamanca and surroundis a collaborating organisation in an initiative launched by ing area. the Spanish Government to promote the use of biofuels The facility also has a number of environmental protecin aviation. tion systems, including a rainwater collection network that is separate from the hydrocarbon-polluted water network. LEADING PLAYER In addition, there are a polluted water treatment system and Today, CLH has a pipeline network more than 4,000 km a vapour recovery unit. and close to 40 storage facilities with a total capacity of The CLH pipeline network in Castile and León is more 7.8 million cbm, as well as 28 airport facilities, making it than 490km long and connects the four storage facilities not just a leading player in Spain, but one of Europe’s the company has in the region (León, Burgos, Santovenia largest oil storage and transport specialists. de Pisuerga and Salamanca) with the rest of the pipeline During the past six years, CLH has implemented the most network in Miranda de Ebro. This network also has two ambitious investment plan in its history, amounting to more pumping stations in Palencia and Santovenia de Pisuerga than 750 million, making it possible for 1.2 million cbm of .Through its subsidiary CLH Aviación, CLH also operates new storage capacity to be incorporated and for over 500 at Salamanca airport to supply aviation fuel. km of pipelines to be built. In recent years the company brought into service new storage in Arahal (Seville), Mahón (Minorca) and Burgos, BIOFUEL DISTRIBUTION prior to completing work on the Salamanca and Ciudad In 2012, the company distributed 27 percent more biofuels Real projects. than in the previous year. During that year, it distributed At the same time, the aviation fuel specialist CLH more than 2.4 million cbm of biofuels, of which 2.1 million Aviación carried out expansion and improvement works cbm were biodiesel and 0.3 million cbm were bioethanol. at several airport facilities, such as Alicante, Malaga, Vigo, More than 0.7 million cbm of the biodiesel were accountSan Javier, Pamplona and La Rioja. Another of the most ed for by HVO, or second generation hydrobiodiesel, which outstanding projects was expansion of the aviation fuel has become much more widely used in the past year. distribution network at Barcelona airport, with the buildCLH currently has 13 plants that have been adapted for ing of two new fuel supply lines between the CLH Aviación the storage and distribution of diesel with biodiesel and a facility and the new hydrant network in El Prat’s new further nine facilities where bioethanol blending with gasoTerminal 1. line can be carried out, all of them located where consump-

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SURVIVING IN A BACKWARDATED MARKET 26

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CONFERENCE REVIEW

The storage market is coalescing into a number of strategic hubs

T

Amsterdam was the venue for this year’s Platts European Oil Storage conference held in late January. Discussion focused on the prospects for European storage in the light of the US shale revolution and the continent’s refining crisis. STORAGE TERMINALS MAGAZINE

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HE SCENE WAS set by Niels von Hombracht, consultant and former CEO of LBC, and now an executive board member of Vopak. He pointed out that the transition from the previous contango market, on the back of which oil storage had boomed, to the backwardated market had been relatively well-managed by the storage industry. “Contango made our industry grow beyond expectations,” he stated. “But now our industry is changing. Factors such as the shale revolution are transforming trade flows, and the US, and Russia, are re-establishing dominance on global oil markets. At the same time the Middle East is becoming as much a consumption zone as a production one.” An overview of the major global markets was given by Rob Luijendijk, managing director of Downstream BV Consultancy and managing director of TankTerminals.com. He estimated global captive and independent tank storage capacity at 2,000–2,500 million cbm, of which ‘independent’ capacity is approximately 400-500 million cbm, or about 20 percent. However, one could question whether the original definition of independent storage capacity is still relevant. The trend over the past decade has been for various stakeholders to enter the market with tank terminal operators often partly owned by, for example, shipping, rail, truck and pipeline companies, ports, traders, producers/ consumers, civil and tank construction companies, national governments, banks and investment funds. With this ingress by new stakeholders, the diversity of ownership is on the rise, and it is more accurate to say pure independence is falling, or at least becoming less imperative. Tank terminals have become a tradable commodity, so perhaps it is more accurate to talk of commercial storage, said Luijendijk. With returns on investment being

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CONFERENCE REVIEW the significant focus for commercial storage, a number of hot spots are emerging in strategic locations. In Europe this is the Antwerp-RotterdamAmsterdam port range, although he thought it appropriate to include the smaller ports of Vlissingen & Ghent. In the Middle East, Fujairah is emerging as the major hub, due to its position outside the Strait of Hormuz. For Asia, ‘Greater Singapore’ is where the action is, including large developments in southern Malaysia and Indonesia. And in the North America, Houston/ Beaumont remains the prime storage centre.

SHALE BOOM In the US, of course, the shale revolution has transformed that nation’s energy landscape to the extent that “Our cup runneth over” according to the following speaker, John Kingston, director of new for Platts. Kingston cited an analysis by consultants at Deloitte that the US industry will need to invest more than US$200 billion by 2035 to meet demand for crude and natural gas infrastructure in the country. However, looking at the current rate of investment this doesn’t look outlandish. “To list every midstream announced proposal in just the past few months would take forever,” he commented. But a common thread is the term ‘related storage facilities’. All transport modes will require storage tanks at some point, he asserted. That aside the biggest requirement in the US has not changed. It is not storage that is most needed, but just getting crude out of the Midcontinent to where it’s needed. Rail is here to stay, he believed, simply to cope with the massive volumes to be shifted. Kingston said there had been no noticeable decline in rail use despite the steep fall in the Brent/WTI discount from its previous “astronomical” levels. He posed the question as to whether the prospects for Keystone XL are fading. But there seems to be a growing consensus that if it is still not approved “it will not be the end of the world”. In fact, had it been approved a few years it could possibly have negated some of the other, less advertised pipeline projects that are now being built.

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Rail will still play a big role in the shale revolution

“That aside the biggest requirement in the US has not changed. It is not storage that is the most crucial element, but just getting crude out of the Midcontinent to where it’s needed”

Kingston went on to discuss the long-standing US ban on crude oil exports which has now been in place since the 1970s. “This entire discussion has come up too quickly for Washington to get its arms around it, and certainly for congressional Republicans,” he stated. There is still a simplistic belief that keeping crude oil at home means lower petrol prices for consumers. But perhaps more egregious is the position of those who should know better, such as US refiners. Some are preparing to fight any proposed change in the export ban because they are perfectly happy to source cheap feedstock,

while trading freely and globally in diesel refined products, at global prices. This reminded Kingston of F. Scott Fitzgerald’s famous quotation: “The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.” If export ban stays in place, he pointed out, this can only help US consumers if one assumes that investment and production levels remain unaffected. He referred to a chart showing the Bakken v WTI price differential over time, and when Bakken shale has been hard to get out of the ground the market has fallen “and fallen hard”. “What’s to say that market can’t drop and stay stuck,” he said. Nevertheless shale continues to boom and has shown itself to be an industry that is both resilient and creative. This creativity he attributed to two main characteristics of the US landscape. First, mineral rights belong to private individuals, a regime that is “fairly unique” in the world, and second the US economy “still allows people to dream big”. There are some threats on the horizon. Kingston suggested that knee-jerk reactions to the use rail cars could stall the ability of crude to exit its production markets. He also cited the ‘personnel crunch’, this is something not often thought about but will be “increasingly important”.

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CONFERENCE REVIEW REFINERY WOES Discussion moved onto the relative health of the refining industry in Europe as opposed to that of storage. Chris Hunt, director general of UK Petroleum Industry Association, pointed out that the need for oil won’t diminish globally. The key factor in Europe is that output is mismatched. Utilisation is low and something has to give, as thanks to shale US Gulf Coast refineries are now enjoying margins that European ones can only dream about. The impact on EU refining will be severe, he stated. Looking at total demand for refined products for the EU27, industry analysts calculate that fossil demand loss from 2005-2030 will 166 million tonnes, an average of 6.6 million tonnes a year. Or as Hunt put it: “equivalent to the combined capacity of the nine biggest (or 40 smallest refineries) out of the 90 currently active EU mainstream.” The main reasons are obvious, including reduced demand for road fuel (-43 percent) alternative road fuels (-35 percent), and reduced heavy fuel oil demand for inland use (-39 percent). Only the quick and the strong refineries will be left standing, he believed. Although he likened the current standoff to the Gunfight at the O.K. Corral. “‘I don’t want to close but I think you should’. It will be tragically interesting to see how long some refineries try to stay open against all the odds,” he said. Despite its island status, the UK has the same supply/demand imbalance as the rest of Europe. The UK needs a balance of good refineries and importers who invest for the long term, he said. However, the costs of environmental legislation and compliance are now seriously impacting the ability to make money on top of the strained margins. This view was largely supported by Arsenije Dusanic, of JBC Energy GmbH, who also pointed out that the growth of big hubs in the US Gulf, the Middle East and Russia means large vessels of refined products will increasingly come into Europe bringing product that needs to be breakbulked. This will create opportunities for storage, but not for refineries.

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It’s all about the jetties

CONVERSION CONSIDERATIONS In the past 36 months all seven existing refineries in the UK have changed hands, closed down, demerged from a vertically integrated company, downsized or tried to sell themselves and failed, evidently not just a coincidence. This interesting take on the two sectors’ relative health was given by Greenergy CEO Andrew Owens. Greenergy is part of the consortium that is turning the former Coryton refinery near London into a storage terminal. Emphasising that he was speaking for Greenergy and not the consortium Owens told delegates that the company’s original decision to invest in the site two years ago had been complicated because the plant was already in administration, and part of its reconnaissance work was gathered from “Google Earth and the back of a transit van”. UK refineries are invariably old, with relatively high sustaining costs, making the wrong output mix for local markets, and sub-scale. “If you add all the refineries in the UK together they would end up a bit smaller that one of the super-refineries being built in Middle East,” he said. The Coryton consortium modelled transplanting the refinery from the Thames Estuary to Denver in the USA and arrived at a $20 per barrel differential in operating costs in favour of the US site. However, opportunities exist to convert refineries to storage but prudence

is necessary. When considering buying from administrators certain things should be borne in mind. Perhaps most important is that capital expenditure is probably already low, and after previous cuts investment in the peripheral storage tanks is also probably low. But despite being unable to make a full assessment of the Coryton assets prior to purchase, Owens said the strategic advantage of the site in geographic terms far outweighed the unknown condition of the refinery’s storage and processing facilities at the time. “Location, location, location is the key to success for a terminal conversion of a refinery,” he said. “Terminal conversion costs are not cheap. You have to change from a linear production to a ‘whirley operating system’. They also require significant material upgrades to condition.” Owens said one of Coryton’s main assets was its jetty. Refineries typically have the deeper drafts to bring in crude and so these jetties give a terminal an automatic advantage when it comes to attracting long distance large ship diesel imports. Of the experiences so far gleaned, he pointed out that reductions in head count can hit staff morale, so focusing on this at an early stage is more important than many of the technical issues. In the end the biggest piece of advice he could give is that the job “will be bigger and more complex than you can ever anticipate”.

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PROJECT MANAGEMENT

MODE L L I N G T H E R ETUR N S Neste Oil has devised a modelling system to assess the viability of tricky industrial investment decisions

N

ESTE OIL RECENTLY planned to invest in new rail unloading facilities at the company’s oil refinery in Porvoo, Finland. The aim of the project was to reduce the logistics costs of a certain type

of crude. However, it soon turned out that the projected profitability of the investment relied on so many independently changing variables that a normal profitability calculation was not sufficient. To simulate the process over a long period, the company decided to use sophisticated modelling and analysis provided by Neste Jacobs, a joint venture company formed by Neste Oil and Jacobs Engineering, which specialises in technology, engineering and project management. Neste Oil has many years of experience in handling tank cars, with currently about 20,000 wagons unloaded each year in Porvoo. But Heikki Tegelberg, HSEQ manager, points out that the company had never unloaded the particular type of crude from tank cars that the investment was designed to handle at Porvoo. “Although it looked like we had invented

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an easy way to reduce the logistics costs and to streamline our operations, we needed to be sure about the investment’s profitability.” Tegelberg explains that, for example, the size, model and quantity of tank cars vary from day-to-day and week-toweek. Another factor to take into account was the outside temperature, since the crude has a high viscosity. “To figure out just how these factors would affect the outcome of the project, a lot of different information had to be fed into the model, such as daily temperature changes over several years,” Tegelberg says. “With a normal spreadsheet calculating program it would have been impossible to calculate how all these independently changing variables would interact over the year and where the possible bottlenecks would be.” After seeing the unexpected results of the simulation, Neste Oil decided to postpone the investment. “The modelling tool clearly showed that the solution we had in mind would not be profitable at the moment,” Tegelberg explains.

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We know tank terminal solutions EXTREMELY FLEXIBLE Andreas Frejborg, manager of process calculation and information at Neste Jacobs, explains that the strength of the modelling tool is that it gives the background for investment decisions based strictly on facts. “It transforms many ambiguous factors into an easy to understand basis for a decision – for or against – as in the Neste Oil case,” he says. In any case, the simulation results help the customer avoid making potentially very costly non-optimal decisions. “We have a track record of about 50 feasibility studies of this kind for tank farms and production units as well as for overall logistics.” A big advantage of the tool is the possibility to create and feed new variables into the model at any stage of the process. “This makes it possible to test a lot of different scenarios in a short time,” says Stefan Karlsson, senior application engineer at Neste Jacobs. This allows very efficient streamlining of the original idea and often provides a completely new, more viable option for decision makers. “And the more facts we can enter into the tool, the more accurate the results will be. It is possible to simulate complex processes for sufficiently long periods, in a reasonable amount of time.”

A SOCIAL TOOL Although the modelling is based on a mathematical tool the service also has social aspects. At the beginning, key personnel are invited to workshops to lay the foundation, and in many cases this is the first time people from different parts of the organisation have met face to face.

CUTTING EMISSIONS Neste Jacobs delivered a new emissions recovery system at the harbour of Neste Oil’s Porvoo refinery at the end of January, with Ville Niinistö, Finland’s Minister of the Environment, officiating at the opening ceremony. The new system is capable of recovering up to 70 percent of the volatile organic compounds (VOC) released into the atmosphere when loading gasoline. Costing around 26 million and built during the past two years, the system represents a major environmental investment in Finland. “We are happy to be part of this investment as it supports our strategy to be the preferred solution provider for hydrocarbon industries also from the environmental perspective,” said Jarmo Suominen, managing director of Neste Jacobs. “In addition to the reduced emissions, the new system will also provide a cleaner working environment for harbour personnel.”

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PIPELINES

K EYSTONE XL N OT QUI TE TH E FINAL HUR D L E A favourable(ish) environmental report on Keystone XL looks likely only to spark fresh litigation and protests

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N 31 JANUARY 2014, the US Department of State released the Final Supplemental Environmental Impact Statement (Final Supplemental EIS) on Keystone XL. However, the ‘Final Supplemental EIS’ is far from final. A 30-day comment period began on 5 February, but more significant is the 90-day window for eight US federal agencies to have their say. These include the Environmental Protection Agency

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(EPA) and the Department of Interior, which have both expressed reservations about the pipeline in the past. It was the EPA’s objections to the State Department’s Draft Supplemental Environmental Impact Statement released on 1 March 2013 that prompted this new report in the first place. If the EPA objects again, President Barack Obama will be back to square one, having to make a tough call that will deeply upset one or other of his core constituencies – unionised labour, who want the jobs that building the

pipeline is claimed to offer, or assorted environmentalists, who seem to think that making it difficult for Alberta’s tar sands oil to get out of Canada will just make the stuff go away. On this latter point the latest EIS does at least discredit that notion. The State Department says that blocking Keystone XL would have only a small impact on tar sands production and climate change. The oil will just find another way to market, most probably by rail. “While short-term physical

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PIPELINES transportation constraints introduce uncertainty to industry outlooks over the next decade, new data and analysis... indicate that rail will likely be able to accommodate new production if new pipelines are delayed or not constructed,” the report states (although analysts at the EPA have previously disputed this argument). Of course, economics will be the deciding factor in the future of the tar sands. The report notes that if lots of pipelines besides Keystone XL are also blocked, Canadian oil production could fall. Likewise, if the price of oil drops between US$65 and $75 per barrel, then the marginally higher cost of rail shipping could make some tar sands oil unprofitable and force producers to leave it in the ground. If the price drops below $65, then larger areas of production would also be unprofitable, with or without pipelines. But in the end the State Department thinks these scenarios far less probable, and so producers will still find ways to ship oil to market.

Wishing the oil sands away! Creative Commons image by Howl Arts Collective

“Of course, economics will be the deciding factor in the future of the tar sands”

HEAVIER AND DIRTIER The State Department says that oil from Alberta’s tar sands produces 17 percent more greenhouse-gas emissions over its life-cycle than conventional oil used in most US refineries. The crude is heavier, more viscous, and contains more impurities than other types, and so uses more energy to extract and process. It is on this life cycle basis — from extracting the oil to burning it in a fuel tank — that the report calculates the 17 percent greater greenhousegas emissions than using the average barrel of oil refined in the USA. It is also worth noting, however, that tar sands oil is only marginally ‘dirtier’ than the heavy crude oil used in many Gulf Coast refineries, which is what it would mainly displace. The GHG emissions of Venezuelan crude, the most likely alternative to oil sands in the Gulf Coast, are in the same range as oil sands, and an article in the Los Angeles Times by Alex Pourbaix, president energy and oil pipelines for TransCanada, also stated that heavy oil from the tar sands is less carbon intensive than oil currently produced in California.

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RAIL RISK Transporting oil by rail carries more environmental risks than by pipeline. The report adds that, if the pipeline gets blocked and producers are forced to ship by rail or truck instead, overall transport emissions for the oil in question could even increase by 28-42 percent because there would be more trains and trucks burning diesel fuel and more rail terminals using electricity. The report also states that shipping oil by rail instead of via pipeline would likely result in additional accidents. Some of the rail routes studied by the State Department could result in three to eight times the volume of oil spilled, according to the models. A pipeline spill is reckoned “unlikely” to damage the key Ogallala aquifer, one of the key freshwater sources for the Great Plains of the Midwest. The report suggests that pipeline spills are inevitable, particularly relatively small ones (it estimates Keystone XL will leak an average of 518 barrels of oil a year), perhaps even despite the state-of-the-art monitoring systems and other leak-prevention technology

the pipeline builder TransCanada is looking to put in place. But the report says that even if a spill did happen near the Ogallala, the impact would be relatively limited: “Modelling indicates that aquifer characteristics would inhibit the spread of released oil, and impacts from a release on water quality would be limited.” In terms of job creation Keystone XL, if built, would support approximately 42,100 direct and indirect jobs and contribute roughly $3.4 billion to the economy (0.02 percent of GDP), the report concludes. About 3,900 of those jobs would be temporary construction ones and after two years, once built, the pipeline would support 50 jobs.

STILL SOME FIGHT LEFT However, opponents of Keystone XL seized on a report last year by Goldman Sachs, a bank, claiming that this reinforced the argument that lack of sufficient take-away infrastructure would provide a powerful brake to the expansion of the tar sands. Thus, they concluded, the US government should deny the pipeline permit because for them stopping tar sands production is the be-all and end-all. The Goldman Sachs report says the key issue facing the Canadian oil industry is ensuring adequate export infrastructure to reach major refining demand centres in the United States or globally. After years of projects missing deadlines and running over budget, oil sands companies in the past two years or so have started to deliver projects

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PIPELINES ahead of schedule and under budget. However, this is occurring at a time where growth in take-away capacity out of Canada is struggling to keep pace, resulting in historically wide spreads between West Canadian Select (WCS) crude and global benchmarks like WTI (light oil), Brent (light oil) and Maya (heavy oil). The issue looks increasingly acute in western Canada, where local refining capacity can only process a small portion of expected production, the bank stated. With Canada’s primary heavy oil export pipelines now running at or near capacity, new projects and/ or expansions are urgently needed. However, a combination of regulatory, environmental, and local community issues are causing significant delays. Aside from Keystone XL, lower profile Enbridge projects like Alberta Clipper (expansion) and Northern Gateway (new build) also appear likely to take longer than investors may currently expect. The potential for Canadian heavy crude supply to remain trapped in the province of Alberta is a growing risk for the period 2014-2017, the report said dependent on the timing of new pipeline start-ups. Essentially, there are three main directions for Western Canadian crude oil flows once the limited amount of regional refining demand is satisfied: south, to major refining centres in the US Midwest and Gulf Coast; west, to Canada’s west coast for export to refining centres on the US West Coast and potentially Asia; and east, to Canada’s east coast refineries or further export to the US east and Gulf coasts, Gulf Coast, India, or Europe. However, it is all a question of emphasis. Goldman Sachs bases its analysis on the assumption that Keystone XL will eventually be built and focuses on the supply-demand issues prior to that. “Our analysis of heavy crude oil supply in Western Canada versus local demand and pipeline/rail takeaway capacity shows 2013 as the last year there will be sufficient takeaway capacity until essentially the start-up of Keystone XL,” the report states. “Currently, TransCanada estimates start-up of XL in 2H 2015, but that is predicated on receiving presidential

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WHAT IS IT? The proposed Keystone XL project consists of an 875-mile long pipeline and related facilities to transport up to 830,000 bpd of crude oil from Alberta, Canada and the Bakken Shale Formation in Montana. The pipeline would cross the US border near Morgan, Montana and continue through Montana, South Dakota, and Nebraska where it would connect to existing pipeline facilities near Steele City, Nebraska for onward delivery to Cushing, Oklahoma and the Gulf Coast area.

approval by this fall (that is, autumn 2013). Our takeaway capacity estimates include a meaningful increase in heavy crude oil rail capacity as well as the successful expansion of Alberta Clipper within Enbridge’s announced schedule. In our view, risk is skewed toward Alberta Clipper being delayed. However, rail capacity could increase faster and by greater amounts than our base-case, in particular if WCS differentials to WTI and Maya are wide.” The widest gap between estimated Western Canada heavy crude supply

and takeaway capacity exists in 2014 and early 2015, prior to XL starting up. “We estimate there will be an extra 230,000 bpd of heavy oil supply in 2014 relative to local demand and takeaway capacity.” Notwithstanding these concerns about 2014 and 2015 pre-XL, ultimately, Goldman Sachs views the connection of Canada’s oil sands/ heavy oil region directly to the US Gulf Coast via Keystone XL, Alberta Clipper/Flanagan South/Seaway, and rail as very positive for the Canadian oil industry.

STORAGE TERMINALS MAGAZINE

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PIPELINES

Perhaps the train can take the strain

“We believe direct connectivity to the US Gulf Coast will (finally) allow for WCS to price relative to Maya crude oil adjusted for the cost of transportation and quality differences. In recent years, WCS has traded at an incremental discount to Maya, as very little WCS is currently able to make its way to the Gulf Coast.” The point is that the report cites a number of real and credible challenges arising from capacity constraints before XL sees the light of day, but nowhere does it says that stopping XL would fatally damage the ability of the tar sands producers to expand, or that the industry will be unable to find alternative take-away systems.

AND THE NEXT ROUND With the EIS providing only minimal support for those opposed to the pipeline, the battle over the pipeline’s construction looks increasingly litigious. A lawsuit was filed barely a week after the EIS release against the US Army Corps of Engineers over its ‘failure’ to provide documents associated with the pipeline’s review. The lawsuit, Sierra Club v. U.S. Army Corps of Engineers, 14-cv00538, U.S. District Court, Northern District of California (San Francisco), was filed on 6 February 6. The Sierra Club claims that the Corps of Engi-

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“We believe direct connectivity to the US Gulf Coast will (finally) allow for WCS to price relative to Maya crude oil adjusted for the cost of transportation and quality differences.”

neers has to make public documents related to its review of the project, especially those describing the pipeline’s path in relation to communities and sensitive water resources. Three times the Sierra Club had sought the records through freedomof-information act (FOIA) requests. It believes the documents are “crucial for a full understanding of the pipeline’s impacts and areas threatened by a tar sands oil spill.” Therefore, the Sierra Club demanded a court order requiring the Corps of Engineers to turn over all documents they sought via FOIA requests.

The Corps of Engineers has refused to provide the documents based on its privilege under the doctrine of “deliberative process”. The Sierra Club argues that this privilege doesn’t apply to documents filed by private parties such as TransCanada. The suit was filed because the Corps of Engineers failed to rule on the Sierra Club’s appeal of its decision by the required deadline. PPHB, an investment bank specialising in energy, pointed out that the lawsuit was filed in the District Court in San Francisco, meaning that if the Sierra Club loses, it will appeal to the Ninth Circuit Court of Appeals, which is known for its “left-leaning bearing” and “highly-favourable environmental orientation”. This court has the distinction among all the circuit courts in the country as having the highest rate of its decisions overturned by the US Supreme Court. But while the legal battles drag on ExxonMobil’s announcement that it is going ahead with a $250 million investment in a rail-loading facility near Edmonton for oil sands output may signal how delay (or attrition) could ultimately make Keystone XL unnecessary. Just as the EIS asserts, tar sands output will still probably find a way to market whether the pipeline is eventually built or not.

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RAIL TANK DESIGN

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In the light of recent – and in one case, deadly – crude by rail accidents moves are afoot to improve the safety of rail tank cars

I

T HAS BEEN a bad year for the image of crude by rail. The disaster at Lac-Mégantic and other accidents have put the spotlight on the safety of transporting non-conventional oil to refining centres. Nevertheless, the demand for rail transport is set to keep growing, with or without Keystone XL, and so the search is on for new technologies to make tank cars safer. One of America’s largest manufacturers of rail freight cars, Greenbrier, has announced that it will design a new generation ‘Tank Car of the Future’ for transport of hazardous freight, including flammable crude oil and ethanol, that can better withstand the additional demands associated with operating unit trains. The new design will also respond to

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safety criticisms of the existing legacy fleet of older DOT-111 tank cars. The new car design is intended to meet expected new industry and government standards for tank cars transporting certain hazardous goods. Greenbrier is also introducing retrofits for tank cars already in service or now being produced, significantly enhancing the safety of existing cars, the company stated. “Statistics from the Association of American Railroads (AAR) show that 99.9977 percent of all rail-carried hazardous material arrives at its destination without incident. However, recent high-profile derailments have clearly demonstrated the need for updating the North American tank car fleet to the highest practical safety standards,” explained Greenbrier chairman and CEO William Furman. “Greenbrier

is addressing the tank car safety issue on two fronts - by supporting a ‘Tank Car of the Future’ and through offering retrofit alternatives for the legacy fleet, including our most recently built CPC-1232 tank cars, as may be appropriate. “This allows the industry to take immediate steps to improve public safety. It also preserves the massive investment in tank cars now in service, by extending the time these cars could be used in hazardous material transportation as they ultimately transition over time to less hazardous service. “The Department of Transportation (DOT) has yet to rule on industry recommendations to adopt the newer and safer CPC-1232 standards submitted to them in March 2011. These were subsequently mandated by the AAR on tank cars ordered after October

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RAIL TANK DESIGN 2011. When Greenbrier builds railcars, our top priorities are to ensure our workers’ and the public’s safety while protecting the natural environment.”

RETROFITTING In order to respond to immediate safety concerns, and in anticipation of future action by the DOT, Greenbrier is also introducing retrofits for legacy DOT-111 cars and newer cars that meet the current CPC-1232 standard mandated by AAR. As of November 2013, there were 272,100 DOT-111 tank cars in service in North America of which 255,000 were of the older legacy design. Among those tank cars, 170,000 were in hazardous transport, with 68,000 tank cars in crude oil and ethanol service. Retrofit options for the legacy DOT111 tank cars will include high-flow pressure relief valves, head shields, top fittings protection and thermal protection. It is expected that appropriate retrofit choices could allow extended service for DOT-111 tank cars as these cars are placed in lower risk service over time. Industry research has shown that bottom and top appurtenances on the legacy DOT-111 tank cars are impacted in high speed derailments. Greenbrier’s proposed retrofit is targeted to improve these tank car features, and adds head shields, to achieve better performance in a derailment. Greenbrier will also provide retrofit offerings for newer tank cars built under the AAR’s CPC -1232 standards, which applies to all tank cars ordered after October 2011. The manufacturer’s retrofit package for newer CPC1232 cars includes high-flow pressure relief valves and improved bottom outlet valve handles for any CPC1232 cars in crude and ethanol service which were not originally equipped with these features. Combined, these retrofits can improve the safety performance of both car types in continued service, Greenbrier says. It also expects ‘Tank Car of the Future’ and retrofit offerings will comply with anticipated Class I rail carrier requirements as well as pending regulatory actions by the US and Canadian governments. The company’s retrofitting work, as part of its Wheels, Refurbishment & Parts

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division, will not materially affect production rates for new builds as part of its manufacturing division. Furman continued: “Greenbrier has a rich history of designing and building the world’s most durable tank cars for delivering sensitive materials. For over 30 years our Wagony Swidnica facility in Poland has built all types of pressure tank and specialty cars for the Western European rail system. European tank car service is highly regulated, and typically consists of shorter, faster trains than in the US and North America, with many advanced safety features and an excellent safety record for hazardous materials service. “We are prepared to respond in part as the result of an order to build 500 pressure cars in North America. Currently, pressure cars are used to transport hazardous freight other than crude oil and ethanol. These cars exceed current tank car standards for cars transporting crude oil and ethanol, as well as all new tank car standards recently considered by AAR. “Our pressure car experience will aid our design effort on the Tank Car of the Future for non-pressurised hazardous service, including the transport of crude oil and ethanol,” Furman added.

OPERATION CLASSIFICATION Meanwhile the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has announced the first results from its 2013 investigation into the transport of Bakken oil, known as Operation Classification, which showed that crude oil taken from cargo tanks en route to rail loading facilities was not properly classified. PHMSA has issued three Notices of Probable Violations to the companies involved as a result. Shippers are required to use nine hazard classes as a guide to classify their hazardous materials properly. “Proper classification will ensure that the material is placed in the proper package and that the risk is accurately communicated to emergency responders,” the PHMSA said. “Shipping crude oil – or any hazardous material – without proper testing and classification could result in material being shipped in containers that are not designed to store it safely, or could lead

first responders to follow the wrong protocol when responding to a spill.” The Department’s action plan includes efforts to ensure shippers and carriers are taking all of the required precautions to transport flammable liquids safely. In 2012, PHMSA and the Federal Railroad Administration began focusing on the safe transport of crude oil produced in the Bakken. After the formation of PHMSA’s Bakken Field Working Group and FRA’s Bakken Rail Mitigation Project, the two agencies launched Operation Classification in August 2013 to verify that crude oil was being properly classified in accordance with federal regulations. Activities included unannounced spot inspections, data collection and sampling at strategic terminal and transloading locations that service crude oil. PHMSA and FRA have also issued several safety announcements about the safe transport of crude oil by rail, including the recent 2 January Safety Alert. Beginning in August to 1 November 2013, PHMSA inspectors tested samples from various points along the crude oil transportation chain: from cargo tanks that deliver crude oil to rail loading facilities, from storage tanks at the facilities, and from the pipeline connecting the storage tank to the rail car that would move the crude across the country. Based on the test results, eleven of the 18 samples taken from cargo tanks delivering crude oil to the rail loading facilities were not assigned to the correct packing group. As a result of the findings, PHMSA has expanded the scope of Operation Classification to include testing for other factors that affect proper characterisation and classification, such as Reid vapour pressure, corrosiveness, hydrogen sulphide content and composition/concentration of the entrained gases in the material. PHMSA will also move forward with the Notices of Proposed Violations totalling $93,000 that were issued to Hess Corporation, Whiting Oil and Gas Corporation, and Marathon Oil Company, and will continue working with the rail and oil industry based on secretary Foxx’s Call to Action, including sharing of additional data, and recommendations for future safety initiatives.

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DOWNSTREAM NEWS

DOWN STR EA M NE WS LATEST NEWS FROM THE UPSTREAM AND DOWNSTREAM SECTORS

Algeria’s petchem ambitions Algeria is pushing ahead with ambitious plans to build up its downstream energy sector. The location for a new petrochemical facility and industrial zone in Bejaia has been finalised, a prime example of the Algerian government’s desire to diversify its economy. In January, Hamou Ahmed Touhami, the governor of Bejaia, a province on the central coast to the east of Algiers, announced the El Kseur municipality had been chosen as the site for the establishment of what would be the third-largest petrochemicals complex and industrial zone in the country, spread out over 250ha. According to the governor, the project, which is being led by state-owned hydrocarbons company Sonatrach, is expected to create at least 3,000 jobs for locals and will be commissioned in 2018. The facility will initially use liquid petroleum gas as feedstock. While authorities have not yet identified which petrochemicals will be produced at the complex, according to the local media, 60 percent of output will be shipped to overseas markets via the port of Bejaia, which will be upgraded to handle the additional traffic. El Kseur’s proximity to the port may have helped secure its bid to host the facility, given the extensive export infrastructure already in place. The city is less than an hour’s drive from the port and its oil terminal, as well as close to an oil pipeline and railroad bisecting the area. The location was one of two sites under consideration, according to local press.

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Algeria wants to diversify its economy from simply oil & gas extraction into petrochemicals. Photo courtesy of Anadarko

The complex at Bejaia will be the third in the country, joining Skikda, on the eastern coastline, and Arzew, in the west. Bejaia lies between those two sites, which also host oil refineries and LNG export terminals. The development of a petrochemicals industry is in line with Sonatrach’s goal to support more general expansion of downstream activities. In 2012 the state-owned entity said it would invest US$80 billion by 2017 in boosting refinery capacity and expanding upstream exploration activities. Plans include building five new refineries that would add 30 million tonnes of capacity, more than doubling the existing limit of 22m.

Developing a local value chain is also important as the government looks to maximise its hydrocarbons earnings and crude output. Algeria produced 233.3 million tonnes of oil and equivalents in 2007 and 205.82 million in 2011, an 11 percent drop. The well-being of the economy is heavily reliant on the energy sector, with hydrocarbons accounting for nearly all exports (97 percent), 70 percent of budget receipts and 37 percent of GDP. The prospect of economic diversification and value-added exports make petrochemicals an attractive sector for expansion. Output stood at 320,000 tonnes in 2011, down from 367,000 in 2010. In tonnage terms, the most important products are methanol, liquid nitrogen and helium – the latter the result of a joint venture between Sonatrach and Germany’s Linde at Arzew. Resins, PVC and ethylene are also produced.

>>

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DOWNSTREAM NEWS

LOSSES PILE UP FOR FRENCH REFINERS Last year the French refining industry lost 700 million, according to trade body UFIP. The causes for the losses were twofold; cheap US fuel imports and more competitive plants in Asia and the Middle East which ate away at European refiners’ margins. Squeezed by declining European demand, French refineries have also seen their traditional gasoline export markets in Africa dry up as refiners in the USA grab market share. “The refining sector is now facing extremely intense competition, especially from the United States, because energy costs for American refineries are much lower than ours thanks to shale gas,” said Jean-Louis Schilansky, directorgeneral of UFIP at the group’s annual presentation. “New refineries in operation in Asia and the Middle East are highly productive too, so we’re caught in a competitive vice between America and Asia,” he said. UFIP data showed margins at France’s eight refineries, including Total’s five plants, halved to 18 per tonne in 2013, much below the 35 a tonne usually necessary for a plant to be profitable. Gross margins stood at 12 a tonne in January, the data showed. The cost of energy accounts for 30 percent of US refiners’ operating costs, against 60 percent for their European counterparts, UFIP added.

European refiners face a bleak future

Total, Europe’s biggest refiner, said earlier this year it expected to lose about 500 million in its French refineries in 2013. A two-week strike at the group’s plants at the end of last year also highlighted the industry’s vulnerability. Schilansky said the dire competitiveness of the refining sector could be a sign of things to come for other sectors in Europe. “I don’t want to sound overly gloomy, but this is something that risks happening in sectors other than refining,” he said. “We are probably the first ones to be hit by the phenomenon because we’re a base material industry, but the chemical, petrochemical, cement, and steel industries – all big energy consumers – may be hit in the same way,” he added.

GULF EXPORTS TO HIT NEW HIGH Petrochemical exports from the countries of the Gulf Cooperation Council (GCC) will hit a record high this year with the World Trade Organization’s (WTO) Bali Package set to come into effect, according to the Gulf Petrochemicals and Chemicals Association (GPCA). The trade agreement is reckoned to make it easier for emerging markets to trade with the industrialised world, the GPCA added. The GPCA statement, however, did not specify the expected volume of exports for 2014 from the GCC, which comprises Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman. According to the latest data, the GCC exported 172 million cbm of petrochemicals in 2012, equivalent to 75 percent of its output and valued at US$52.7 billion, a Platts report calculated. The Bali Package, which resulted from the Ninth Ministerial Conference

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Some 14 refineries have shut in Europe since 2007 to adjust to lower demand, with capacity cut by 24 percent in France over the same period, 22 percent in Britain, 15 percent in Germany and 10 percent in Italy. Lower demand for oil products in Europe, as cars become more efficient and consumers try to cut their transport bill, has also weighed on the refining sector. French oil products demand fell 0.7 percent to 75 million tonnes in 2013, the 10th consecutive year of decline and the same level as in 1984, according to UFIP. Demand is unlikely to pick up in coming years, as a planned carbon tax and other green levies are expected to boost fuel prices at the pump from next year.

Record petchem exports are expected from the GCC in 2014

of the WTO in Bali, Indonesia, in early December 2013, creates binding commitments among member countries to increase customs efficiency and revenue collection by reducing bureaucratic procedures. Abdulwahab Al Sadoun, GPCA’s secretary general, said: “The WTO’s deal on trade facilitation, if implemented in its true spirit, will reduce the cost of all GCC petrochemicals exports, thus easing the flow of goods across borders and cutting delays in international shipments, especially in the countries where Gulf chemical exporters have encountered difficulties in the past.” Export barriers against the GCC’s petrochemicals will ease only in the second half of the year, as the Bali Package is set to be ratified by the WTO General Council by July 2014, the GPCA statement added.

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WORLD TERMINAL NEWS

WOR L D TE R M IN A L NEWS KEEPING YOU UPDATED WITH INDUSTRY NEWS FROM AROUND THE GLOBE

AUSTRALIA

BLB2 opens in Botany On 21 February NSW Ports officially opened the second bulk liquids berth in Port Botany. Just over two years ago Sydney Ports Corporation started constructing the second ‘BLB2’ for Port Botany which was officially opened by the Honourable Mr Duncan Gay MLC, Minister for Roads and Ports. NSW Ports chairman Paul McClintock AO also officiated at the opening and in his address to stakeholders, tenants and customers, McClintock made mention of the “the vision and the tenacity of Sydney Ports to follow this project through”, which has enabled NSW Ports to inherit this piece of critical infrastructure. The Hon Duncan Gay MLC also thanked construction company John Holland, which was the prime contractor and reiterated the importance of the facility to the NSW economy. The original bulk liquids berth (BLB1) at Port Botany has been in operation since 1979. This berth has been occupied on average between 50 and 60 percent of the time over the past 10 years and more recently has experienced average berth occupancy levels in excess of 80 percent.

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The main products handled at BLB1 are refined fuels, gas and chemicals. Currently the facility handles 90 percent of the state’s LPG requirements and 26 percent of the jet fuel requirements for Sydney Airport. The additional berth will now cope with the ever growing needs within the NSW market. The BLB2 project comprised construction of a steel-piled pier berth adjacent

to the existing BLB1; associated infrastructure such as fire-fighting equipment, onshore support facilities, loading arms as well as pipelines from existing user sites to the new berth. The open access, multi user berth will operate on a 24/7 basis. BLB2 has been designed to accommodate 120,000 dwt vessels up to a maximum of 270m overall length.

>>

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WORLD TERMINAL NEWS

Shell sells assets to Vitol

AUSTRALIA

Shell has reached an agreethe Shell brand. ment to sell its Australia Australia is a downstream businesses growing economy (excluding aviation) to Vitol and we look forward for a total transaction value to working with the manof approximately A$2.9 agement team to strengthen billion (US$2.6 billion). and grow the business.” The sale covers Shell’s Shell’s Australia couneelong Refiner and try chair Andrew Smith site retail business - along acknowledged the contribuwith its bulk fuels, bitumen, tion that Shell’s downstream chemicals and part of its employees had made to the lubricants businesses in company over the past 113 Australia. It also includes a years. He said: “Like any brand license arrangement he sale co ers hell s eelong Refiner and site retail business that operates and an exclusive distributor business along with bulk fuels, bitumen and chemicals for over a century, Shell’s arrangement in Australia for business has changed Shell Lubricants. over the years, and we are pleased to have found a buyer It does not include the aviation business, which will remain for the eelong Refiner hrough the rand agreement with Shell Group, or the lube oil blending and grease plants reached with Vitol, the Shell brand will continue to be in Brisbane, which will be converted to bulk storage and displayed across the company’s service station network distribution facilities. The majority of Shell’s downstream and customers ill still ha e access to ualit hell fuels staff in Australia will continue to operate the business under and lubricants. its new owner. “Shell will continue to play a major role in the development Shell’s upstream operations in Australia, in which it will of Australia s e panding li uefied natural gas industr continue to invest, are not affected by the deal. Ben van and we look forward to strengthening our presence in the Beurden, Shell’s CEO, said: “Australia remains important years ahead.” to Shell, but we are making tough portfolio choices to The deal is subject to regulatory approvals and is eximprove the company’s overall competitiveness. Our cuspected to close this year. Recent downstream divestments tomers ill continue to enefit from the ualit associated hell include the sale of refineries in the erman ith the hell rand and e are confident itol ill in est in France, Norway and the Czech Republic; downstream busiand grow the business.” nesses in Egypt, Spain, Greece, Finland and Sweden, as well Vitol president and CEO Ian Taylor said: “This is an excitas the creation of a downstream joint venture – with Vitol ing ac uisition for us a good compan led an e peri and other partners – across Africa, and the planned sale of enced management team and underpinned by the value of some downstream businesses in Italy and Norway.

GRAINCORP TO INVEST GrainCorp is reportedly to spend A$70 million on new bulk liquid storage at terminals in NSW, Queensland and Western Australia. The three new facilities will collectively provide 65,000 cbm of capacity for a range of products, including petroleum and chemicals. GrainCorp spokesman Angus Trigg told Australian media they were part of the business opportunities which had arisen since GrainCorp took over edible oils company Gardner Smith in 2012 to build its GrainCorp Oils division. The company said the investment would lift earnings by $8 million by

STORAGE TERMINALS MAGAZINE

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2015-16. The investment would be funded by a mix of cash reserves and borrowings. The NSW storage will be built on land adjacent to GrainCorp’s grain port terminal at Port Kembla which the company leased from the port operator. It will serve demand from the local chemical industry. The other two storages will be built on existing GrainCorp Liquid Terminals port facilities at Pinkenba, Queensland and Fremantle, WA. The Pinkenba storage will serve the petroleum sector, improving the flexibility for one of GrainCorp’s long-standing customers. The Fremantle tanks will provide storage for the chemical and mining sectors in WA.

The company said there was scope to increase the size of the storage in the future should demand warrant it. GrainCorp executive chairman Don Taylor said the investments formed part of the growth initiatives targeting an additional $110 million of incremental underlying EBITDA. “It’s pleasing to see continued growth and opportunity for the liquid terminals business we purchased in 2012,” Taylor said. “There is strong, confirmed customer demand for each of these projects and we have a high level of confidence in their ability to generate good returns for our business as well as supporting the growth of our customers’ businesses.”

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WORLD TERMINAL NEWS EPCC activities at Pengerang Deepwater Petroleum Terminal helped boost Dialog’s revenue

GROWING DIALOG Dialog Group posted total revenue of RM694.2 million for its second reporting quarter, an increase of 38 percent over the same period last year. The cumulative six months’ revenue ended 31 December 2013 of RM1.3 billion was also higher by 38 percent over the previous year. The continuing EPCC activities at Pengerang Deepwater Petroleum Terminal in Pengerang, Johor and other on-going projects, coupled with increased plant maintenance and specialist products and services, explained the higher revenue for the Malaysia operation during the period. Revenue from International operations was

also higher, attributable to increased fabrication in New Zealand, engineering and construction in Singapore, and strong sales of specialist products and services in Middle East, Africa and Thailand. The group’s net profit for the quarter was RM69.1 million and year to date RM119.4 million up 52 percent and 32 percent, respectively, against the same periods in the previous year. The increased contribution from joint ventures was due to an exceptional income of RM16 million. The oil & gas sector in Malaysia is expected to remain a main growth driver for the Malaysian economy contributing some 20 percent of GDP. Of the cumulative amount RM218 billion of

SABAH CRUDE EXPORTS DELAYED State firm Petronas has reportedly postponed the start of crude exports from an oil and gas production facility in Sabah by at least three months due to a technical issue. The Sabah Oil and Gas Terminal in Kimanis Bay is an important component in the country’s plan to boost crude exports from several deepwater oilfields in East Malaysia, but the start has been delayed by problems at a semisubmersible platform that links the oilfields to the terminal, according to oil industry reports. Exports were scheduled to start in the first quarter of this year, but the terminal may now export crude only in June or in the second half of the year, sources said. The terminal can handle up to 300,000 bpd of crude oil and 1 billion cb ft of gas a day, according to Petronas’s website. It will initially export the 25,000 bpd output from the Gumusut-Kakap field and the volume will increase to 70,000 bpd a year later. Much of Malaysia’s added oil output will come from the Gumusut-Kakap and Malikai fields.

STORAGE TERMINALS MAGAZINE

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announced EcoMALAYSIA nomic Transformation Programme projects, approximately RM70 billion (32 percent) will be invested in Pengerang. All these translate into a robust industry outlook and more upstream and downstream opportunities for oil & gas service providers. The demand for tank storage is expected to increase while further development of the Pengerang Deepwater Petroleum Terminal will provide increased opportunities for the group’s E&C division. The group will also benefit from long-term recurring income.

Bunker growth State energy company Pertamina has begun work on oil & gas projects including an expanINDONESIA sion of its bunker storage capacity on the island of Sambu, according to the Jakarta Globe. The company will upgrade the terminal to store kiloliters of marine fuel oil an increase of kiloliters Pertamina will also upgrade its dock capacity to accommodate ships of d t compared ith a current ma imum of d t he terminal ill e e uipped ith an automation s stem compara le to those in ingapore as ell as a diesel fuel and lending facilit he first stage of upgrades to the terminal is scheduled to e com pleted at a cost of million and later stages are e pected to increase the total capacit to kilolitres ertamina plans to capture demand from the alacca trait hich no mainl o s to ingapore according to uhartoko a ertamina director emand for marine fuel oil in this strait reaches million kiloliters a ear and so far e can onl suppl kiloliters he said.

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WORLD TERMINAL NEWS

HCL import facility

Chemical distribution company Brenntag reland has agreed terms to create a new import facility for hydrochloric acid (HCL) in the North East of England which will create the largest sea-fed terminal of its t pe in the The investment will expand storage capabilities at the hub and enable Brenntag to import product by ship from outside of the offering customers improvements in supply security. Russel Argo, managing director of Brenntag stated: L is an important product for Brenntag and for a num er of industr sectors t is used in water treatment, food and pharmaceutical production and is a vital part of the steel processing industry and our investment represents a real commitment from Brenntag to our customers for the long term sustainable supply of this important product.” Brian Lister general manager of Brenntag s norgan ics Division, added: “This investment improves our ability to suppl L from alternati e sources to the current production locations and fits ith Brenntag s strateg to expand our regional tank capacity to offer a wider route to

GERMANY

market for both our European and global supplier base.” The new facility will be constructed by Simon Storage at its Seal Sands Terminal and, when completed, it ill e the first time L has been handled in such large uantities through the terminal for many years. With a capacity of o er tonnes the facility will also have an integrated dilution system to offer a full range of product grades. In addition to the sea-fed facilit Brenntag has also in ested in a rand ne eet of purpose uilt specialised ISO tank containers to expand its import capacities by road. The group said this combined commitment in infrastructure and logistics ill ensure Brenntag can continue to provide outstanding levels of UNITED customer service. KINGDOM ead uartered in lheim an der Ruhr Germany, Brenntag operates more than locations in o er countries

FIRST FOR LNG IN GERMANY

Bomin Linde LNG and AG EMS conclude first contract nationwide in Germany for the delivery of liquefied natural gas as marine fuel. Shipping company Aktien-Gesellschaft EMS (AG EMS) and Bomin Linde LNG have signed the first contract for the delivery of LNG in Germany. It proposes supplying LNG as fuel to the MS Ostfriesland passenger ferry operated by AG EMS starting in mid-2014 after her retrofit. AG EMS managing director Dr. Bernhard Brons explained: “With Bomin Linde LNG we are happy to be bringing a leading supplier of LNG on board. This makes us the first users of LNG for German passenger ferry services.” “This is an important step towards using LNG as a marine fuel in Germany. I’m glad that AG EMS and Bomin Linde LNG are on this path together,” added Mahinde Abeynaike, Bomin Linde LNG managing director. Ruben Benders,

L-R: Claus Hirsch (marine superintendent A E ann laas isser aptain stfriesland A E r Bernhard Brons A E Ru en Benders Bomin Linde L ahinde A e naike Bomin Linde LNG), Dr Richard Schröder (director commercial operations Bomin Linde LNG)

also managing director of Bomin Linde LNG, commented: “Supplying the ferries with LNG makes AG EMS a pioneer in Germany and sends

a clear signal that this low-emission propulsion system has arrived here, too.” The bunkering process is certified by the classification society and the flag state. “The technical process is comparable to bunkering operations for traditional fuels. However, since the LNG is cooled down to -163degC, appropriate personnel training is required,” explained Claus Hirsch, AG EMS technical inspector. “A significant factor for co-operating with Bomin Linde LNG as a supplier is the construction of two LNG bunker terminals in the ports of Hamburg and Bremerhaven commencing operations in 2015. This coincides well with our projects for Emden and Cuxhaven. Deliveries to the port of Emden will initially come from abroad and at a later stage from a facility in a German port,” said Dr Brons. Bomin Linde LNG is currently completing the final preparations in planning the construction of the LNG bunker terminals in Hamburg and Bremerhaven.

>> STORAGE TERMINALS MAGAZINE

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WORLD TERMINAL NEWS

RUSSIA

l on

UNITED KINGDOM BLYTH BASE FOR MARINE FUEL ased marine fuel supplier eos roup is building new marine fuel storage at Port of Blyth’s Bates Terminal. Excavation and compacting began on the site of the terminal in the Bl th Estuar in cto er ome steel piles ere then hammered m deep into the ground to strengthen the tank foundations. For each tank base, a large circular steel frame as uilt into hich lorr loads or c m of concrete as poured Halls Construction has been working on the bund wall, access roads, drainage systems and other elements of the on-site infrastructure, and manufacturing company Isleburn has started building the tanks. Geos Group chose to build the facility at Port of Blyth because it believes the port is strategically well-positioned, has “excellent” deepwater facilities and ambitious expansion plans. The port is rapidly developing into a hub for the expanding offshore renewable energy and oil & gas sector and is now home to several new manufacturing and maritime enterprises. his construction pro ect reaffirms our position as a growing offshore energy hub. We believe others will follow and join the cluster of organisations within the sector alread esta lished around the estuar said artin La lor Port of Blyth chief executive. he pro ect represents the first de elopment in the Bl th Estuary Enterprise Zone and is expected to create at least ne o s in the local area t has een supported Arch (The Northumberland Development Company) which has provided valuable regional growth funding and other assistance through their Northumberland Business Growth Programme. The new terminal is expected to begin fuelling operations in the second half of nitiall it ill pro ide the shipping and maritime industries on the coast of northeast England ith an additional capacit of o er million litres of fuel, with further expansion likely as the port grows and demand for marine gas oil increases.

STORAGE TERMINALS MAGAZINE

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Kozmino on the up

n oil e ports from the petsmornefteport o mino LL terminal at Port of Vostochny grew by 31.2 percent, year-on-year, to 21.3 million tonnes his tonnes more the compan itself projected. ome million tonnes of oil as deli ered ESPO-II pipeline and 3 million tonnes by railway. The growth was driven by the commissioning of phase II of E and Berth o of petsmornefteport o mino being able to accept tankers with deadweight of up to tonnes he ma orit of oil as e ported to apan percent hina percent and orea percent ome percent as e ported to the hilippines in gapore A and ala sia Less than percent ent to Thailand, New Zealand, Taiwan, Indonesia and Australia. ort of o mino is the terminus of the E il ipeline Eastern i eria acific cean in akhodka Primorsk territory. he capacit of the terminal s first stage as mil lion tonnes of crude oil a year. With the launch of the second stage in the capacit as e panded to million tonnes.

TAKORADI TANKS ON THE WAY Ghana Oil Co, the secondGHANA biggest operator of petrol stations in the nation, is investing US$10 million in marine fuel storage tanks at port of Takoradi to boost its share of the bunkering market. The company started procuring materials for the project and will complete it in a year, according to managing director Patrick Akorli. Takoradi is one of the twin capitals of Ghana’s Western region, where Tullow Oil began producing crude at the Jubilee field in December 2010. Ghana Oil has a 31 percent market share in bunkering, the process of supplying a ship with fuel, said Akorli. “We want to increase our market share of the bunkering industry,” Akorli told media. “Opportunities have grown at the port because of the oil pumping activities in the region.”

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WORLD TERMINAL NEWS

Nustar expands loading capacity he first ship has unloaded crude oil at NuStar Energy’s new private loading dock at its North Beach Terminal in Corpus Christi, Tx. The project was completed several months ahead of schedule. Originall scheduled to e finished in the second uarter of this ear u tar expedited the project in order to meet strong customer interest in using the dock to transport shipments of Eagle Ford crude oil by water. With the new dock, NuStar now has three loading docks in the Port of Corpus Christi, and can load crude oil onto ships simultaneously on all three. NuStar also completed major additions and upgrades to the terminal’s pump systems. With all of these upgrades, North Beach’s marine loading capacity has more than tripled to pd “This additional capacity enables us to handle all of the new volumes associated with our ongoing expansion efforts in our South Texas crude oil pipeline system, as well as additional

volumes shipped on our pipeline systems to Corpus Christi,” said NuStar president and CEO Brad Barron. he pro ect includes a series of ins and 12 ins pipelines that move the crude oil from incoming pipelines or tanks within the terminal to the new dock, a state-of-the-art metering system, vapour control system, and a dock structure with three loading

TARGA ROLLS ON Progress is continuing on Targa Terminals marine oil terminal in Stockton, Ca. The project is in the design and audit phase, and will be the first marine oil terminal approved in California in the past 15 years, according to a press release from environmental engineering firm TRC Companies, Inc. Once the final engineering plans are completed, construction can begin with the facility expected to be operational in 2016. Targa expects to sign a customer for the facility sometime this quarter. The terminal is an inland port and is served by two railroads that will move unit trains from various oil fields to Port of Stockton. From there, crude oil moving to Bay Area refineries would be barged from Stockton offering some flexibility and avoiding potential rail traffic. Targa has retained TRC Companies for the planning, permitting, engineering design and construction management requirements.

STORAGE TERMINALS MAGAZINE

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UNITED STATES

arms. The dock system is designed to load Panamax-class vessels hich carr et een and l at rates up to barrels per hour. And the entire structure is supported concrete piles, each measuring approximately ft and each of these piles as dri en a out ft into the ottom of the ship channel.

Genesis in Baton Rouge Genesis Energy plans to invest about US$150 million to construct a new crude oil, intermediates and refined products import/export terminal in Baton Rouge, La. The will be located on about 90 acres of land near the Port of Greater Baton Rouge and will be connected to the port’s existing deepwater docks on the Mississippi River. The docks are capable of berthing vessels ranging from barges to Aframax class vessels. Genesis Energy will initially construct approximately 1.1 million bbl of tankage with the capability to provide additional storage. The Baton Rouge Terminal will also be connected to ExxonMobil facilities in the area, as well as to Genesis Energy’s previously announced Scenic Station unit train-capable rail facility. Shippers to Scenic Station will have access to both the local Baton Rouge refining market, as well as the ability to access other attractive refining markets. Following its completion, which remains on schedule for the second quarter of this year, Scenic Station will provide shippers a low-cost destination rail facility dually connected to both Canadian National and Kansas City Southern railways, which has interconnectivity with Canadian Pacific’s network. Genesis expects the terminal to be operational by the end of second quarter of 2015.

>>

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WORLD TERMINAL NEWS

Salt dome proposal ulf hores idstream plans to uild a new underground salt dome storage hub on the Louisiana Gulf Coast. The hub will be located outside of New Iberia, La. The company told OPIS that it has secured a full capital commitment from a pri ate e uit partner to develop the hub and is in the midst of assessing customer capacity interest and generating letters of intent. The hub, slated to open commercial operations in the first uarter of ill offer storage capacit and midstream services for ethane, propane, butane, pentane, y-grade, ethylene, propylene and crude oil. In addition to pipeline connections, the project will include large-scale truck and rail logistics. Gulf Shores intends to build pipelines linking with Shell and Dow eth-

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ylene lines north of the planned hub, and to two Crosstex Energy pipelines: the Cajun-Sibon, which brings ra mi south from t Bel ieu and an RGB line north of the hub. Also planned is a truck loading and offloading facility and connections to a nion acific rail line or crude oil Gulf Shores will establish connections to Shell’s Houston-to-Houma (Ho-Ho) crude pipeline. The hub will serve petrochemical plants on the ississippi Ri er suppliers and logistics marketing companies that move supply locally. “Due to incredible growth and expansion in shale gas exploration, the surge of natural gas li uids is bringing new opportunities for downstream energy businesses to grow,” said Gulf Shores CEO David Branch. “The Iberia Storage Hub, which is the

STATES benchmark of our development projects, is designed to meet the needs of customers seeking to optimise operational storage demand.” The hub will consist of a number of individual caverns for storing various hydrocarbons. A crude storage cavern would typically be much larger than a cavern for ethane or ethylene. Gulf Shores also touts a brine management programme which helps to optimise a salt dome facility’s working storage capacity and is critical in the injection and withdrawal of products. Gulf Shores is currently at the beginning of the permitting process. he firm is seeking permits from the Louisiana Department of Natural Resources.

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WORLD TERMINAL NEWS

UNITED STATES

ARC ENTERS WEST COAST MARKET Arc Logistics Partners, through its wholly-owned subsidiary Arc Terminals Holdings, has extended its presence in the est oast market signing a ear lease on a petro leum products terminal in Portland, Oregon The lease is concurrent with the CorEnergy Infrastructure rust ac uisition of the ortland erminal from an unaf filiated third part Arc also has an option to purchase the Portland Terminal. Vince Cubbage, CEO of Arc Logistics, commented: “The Portland Terminal is an important addition to our asset base supported by a long term contract with a major oil company. Based on minimum contracted throughput volumes, we e pect the transaction to e accreti e to distri uta le cash o mportantl e e pect the ortland erminal to pro ide the opportunit for significant incremental gro th as additional customers or terminal capabilities are developed.” Arc Logistics ill ha e percent operational and com mercial control of the Portland Terminal, a rail/marine facility ad acent to the illamette Ri er he acre site has

STORAGE TERMINALS MAGAZINE

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tanks ith a total storage capacit of nearl million ar rels and is capable of receiving, storing and delivering heavy and refined petroleum products roducts are recei ed and or delivered via railroad, marine (up to Panamax size vessels) and a truck loading rack. The marine facilities are accessed through a neighbouring terminal via a pipeline. The terminal offers heating systems, emulsions and an on-site product testing laboratory as ancillary services. The Portland facility increases Arc Logistics’ operated storage capacit to appro imatel million arrels and expands the partnership’s geographic presence. “The opportunity surrounding the Portland terminal is an example of the partnership’s commitment to support its customers’ commercial activity and growth initiatives by expanding its operational platform for their enefit added ohn Blan chard, president of Arc Terminals. orEnerg nfrastructure rust is ac uiring the terminal for million paid for ith proceeds from a sale of million shares.

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WORLD TERMINAL NEWS

Expanding asphalt Calumet Specialty Products Partners has signed a multi-year agreement with Frontier Terminal LL to lease a l li uid asphalt distribution terminal in uskogee k Calumet will supply and market a range of asphalt products produced its orthern refining s stem through the uskogee erminal uring the first uarter alu met will begin marketing its asphalt products to customers in Arkansas, issouri ansas and klahoma hrough the uskogee ermi nal, Calumet will seek to establish itself as a key asphalt supplier in several mid-continent markets where, historically, we have not actively marketed product. Looking ahead, we expect that this agreement, together with the multi-year asphalt marketing agreement we announced with All States Asphalt, nc in anuar should help

facilitate an expansion of our addressable markets and asphalt customer base,” said Jennifer Straumins, president and COO of Calumet Specialty Products Partners LP. Calumet is a master limited partnership producing speciality hydrocarbon products in North America. Calumet processes crude oil and other feedstock into lubricating oils, solvents and waxes used in consumer, industrial and automotive products. Based in Indianapolis, the company also produces fuel products including gasoline, diesel and jet fuel and has 12 facilities located in northwest Louisiana, northwest Wisconsin, northern ontana estern enn sylvania, Texas, New Jersey and eastern issouri

UNITED STATES

TRANSMONTAIGNE, MAGELLAN IN PIPELINE DEAL rans ontaigne has agreed to lease capacity at two oil product terminals and a pipeline to agellan ipeline ompan under a ear deal ending its current agreement ith organ Stanley. he agreement ith organ tanle to lease these facilities ended on February as the investment bank’s trading arm reduces its physical footprint. In December, the bank agreed to sell its physical oil business to stateowned Russian oil company Rosneft. organ tanle s trading di ision organ tanle apital roup o ns percent of rans ontaigne nc which controls the general partner of en er ased rans ontaigne artners L organ tanle is also rans ontaigne s largest client The bank announced in December that it was seeking to sell its Transontaigne stake The agreement announced in a

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rans ontaigne statement co ers all of the aggregate arrel ca pacity of two oil product terminals in Rogers Akansas and ount ernon issouri and the pd Ra or back oil product pipeline. The terminals represent about 2 percent of the company’s total tank capacity. The Razorback Pipeline runs from ount ernon to Rogers and accounts for most of the company’s pipeline capacity. Pipeline transport fees accounted for percent of total re enue for rans ontaigne last ear he ulk of its revenue comes from terminal ser ices anagement e pects the new agreement will generate about the same total annual revenue as the organ tanle agreement the state ment said. agellan ipeline is a holl o ned affiliate of agellan idstream Partners LP.

PENTA LOADS LARGEST ETHANOL CARGO

PERU

At the end of December 2013, Penta Tanks Terminal, a subsidiary of Andino Investment Holding, loaded the largest ethanol cargo ever in Peru. Some 15,200 cbm of ethanol, owned by Maple Biocombustibles SRL, were loaded into the Harbour First ship by an underwater pipeline and the multi-buoy system, property of Penta tanks located 3km from Paita Port. The cargo was destined for Rotterdam, The Netherlands. “Our terminal has a storage capacity of 30,000 cbm, as well as marine and land facilities. This load shows the capacity of our company to fulfil client requirements,” commented Enzo Sacín, CEO of Penta Tanks Terminals. Penta Tanks develops and operates specialised terminals, providing reception, storage and dispatch of liquid cargo exclusively to Maple Biocombustibles SRL.

>>

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WORLD TERMINAL NEWS

SUNDAY CREEK ADDITION Enbridge is to construct additional facilities at its Sunday Creek Terminal, located in the Christina Lake area of northern Alberta, to support production growth from the Christina Lake oil sands project operated by Cenovus Energy and jointly owned with ConocoPhillips. The estimated cost of the expansion is approximately C$0.2 billion with a targeted date for completion of the third quarter of 2015. The expansion includes development of a new site adjacent to the existing terminal, construction of a new 350,000 bbl tank with associated piping, pumps and measurement equipment, as well as civil work for a future tank. The existing Sunday Creek Terminal was put into service in August 2011. This expansion furthers Enbridge’s plans to bring incremental volume from projects in the region to the Athabasca Twin pipeline.

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CANADA

Terminal expansion for Hebron field An environmental review of a proposed expansion to the oil shipping terminal at Whiffen Head, Placentia Bay, Newfoundland has been started by the provincial government. The proposed changes are being put forward by Newfoundland ransshipment and ill include modification and e pansion of the existing facility for off-loading and transfer of oil from the Hebron offshore oil development. According to a notification issued the pro incial epartment of En ironment modifications planned include heating stored crude in three existing tanks, possible decommissioning of two existing heating plants, designing a new crude heating system, heat tracing of piping between tanks and the loading platform, addition of up to two storage tanks with working capacity of arrels each The tank farm at the Placentia terminal currently has six crude oil tanks with two loading platforms and handles oil shipments from the i ernia erra o a and hite Rose fields he terminal a er aged essels a ear from to All new infrastructure proposed would come within the bounds of the existing facility, according to a the notice. The expansion follows a terminal study, contracted by the e ron pro ect partners in

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ACCIDENT INVESTIGATION

DON’T DRINK THE WATER The US Chemical Safety Board has released preliminary findings from its investigation into the Freedom Industries chemical tank spill

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HE FALLOUT CONTINUES from the leak of toxic chemicals from a storage tank at a Freedom Industries Inc plant. The leak at the Etowah River Terminal, near Charleston, West Virginia, on 9 January came from a 4w6,000 gallon tank of 4-methylcyclohexane methanol, a chemical used in coal processing. About 10,000 gallons escaped from a 1ins hole, compromising water for about 300,000 people and sending more than 100 to the hospital. Freedom Industries subsequently filed for bankruptcy in the U.S. Bankruptcy Court in Charleston, to seek some court protection from litigation. But the wider issue remains of safety standards in America’s chemical processing industry. At a field hearing in Charleston on 10 February 2014, Rafael MoureEraso, chairman of the US Chemical Safety Board (CSB) testified that “urgent steps are required to significantly improve the safety of facilities that handle hazardous chemicals”. “There are a few things that people here in West Virginia will never take for granted again. Common acts such as using tap water to prepare dinner for your family or drawing a bath for your child; everyday activities that quickly became impossible for approximately 300,000 West Virginians on 9 January 2014,” he said. Moure-Eraso said the chemical sector is vital to the US economy, yet potentially dangerous to those who live near

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the thousands of facilities that process or store hazardous chemicals. The CSB has 41 employees, half of whom are professional accident investigators with highly technical skills. Currently the CSB has a four member team in the field investigating the accident. However, he stated this was the CSB’s third deployment to a major chemical incident in the Kanawha Valley in recent years. In 2008 two workers were fatally injured at the Bayer CropScience chemical plant in Institute when a waste tank containing the highly toxic pesticide methomyl violently exploded. Then in 2010, three incidents occurred in a 33 hour period at the DuPont Belle facility. There was a release of highly toxic phosgene, exposing a veteran operator and resulting in his death one day later. Following the CSB’s investigation into the Bayer and DuPont incidents the board recommended that the county, working with the state, establish a hazardous chemical release prevention program to enhance safety and optimise emergency response. The CSB recommended that the health department establish an industrial safety authority, paid for using fees assessed on the companies processing or handling potentially dangerous chemicals. As an example, it cited the successful programme in California’s Contra Costa County, which has an equally dense industrial chemical base. Although no regulatory programme is 100

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Left: An environmental enforcement boat patrols in front of the chemical spill at Freedom Industries; Below: The hole that caused the leak

percent effective, the Contra Costa programme has reported a dramatic decrease in serious incidents over the years without any adverse impact on employment or the business community. “State and local authorities tell us they considered the recommendation but due to a number of reasons, including funding, it has not been adopted,” he stated. “The CSB’s previous recommendations (were) aimed at empowering a government agency to determine just what posed a high hazard. Perhaps qualified inspectors would have considered ageing chemical storage tanks, located just upstream from a public drinking water treatment plant, to be potentially ‘highly hazardous’ and worthy of a closer look.” In this regard the CSB chairman was very encouraged by the recent efforts of legislators, including Representative Capito, Senator Rockefeller, and State Delegate Skinner who are all seeking to have the CSB recommendation implemented to protect West Virginia residents and businesses.

FIRST FINDINGS Although a fuller investigation of the Freedom Industries spillage is still underway, Moure-Eraso confirmed that up to 10,000 gallons of 4- methylcyclohexane methanol (MCHM) with an estimated 5.6 percent PPH was lost, of which “a significant amount” was released into the Elk River, a tributary of the Kanawha River. Preliminary findings from the CSB investigation indicate that there was a “gap in the regulatory framework” that failed to cover adequately above ground storage tanks.

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ACCIDENT INVESTIGATION “In October 2013, at the request of the company, Tank Engineering and Management Consultants performed a review of the tank terminals located in Charleston and Nitro. The evaluation was conducted and approved by an API-653 and 570 certified inspector, who also was credentialed as a National Association of Corrosion Engineers (NACE) Certified Corrosion Technologist,” said Moure-Eraso. “The review notes that the substances stored in tank 396 are considered ‘non-hazardous’ by the Environmental Protection Agency and are therefore not regulated by the the safety of tanks at facilities that have federal Spill Prevention Control and similar tanks in use is an important Counter Measure Program, or SPCC question,” stated Dr Moure-Eraso. rule. The review further notes that the “This was the CSB’s The CSB team will also examine tanks have ‘been maintained to some third deployment to the response to the leak once it was structural adequacy but not necessarily discovered. It will be particularly in full compliance with API-653 or EPA a major chemical interested in the adequacy of informastandards.’” API-653 is considered the prevailing incident in the Kanawha tion on MCHM and PPH hazards since the manufacturers’ MSDSs apparently voluntary good practice for aboveValley since 2008” stated ‘no data available’ for numerground storage tank (AST) inspection, ous toxicological properties, especially alteration and repair, and was develchronic toxicity. oped to establish a uniform national “Having information readily availprogramme that assists state and local able for the public is an issue we will be governments in AST regulations. further examining in regard to ongoing “It is important to note that API reform of the Toxic Substances Control Act. Emergency re653 is the very first safeguard for improving the safety and sponders, local officials, regulators and public utilities must reliability of aboveground storage tanks,” he continued. be provided the proper information in order to protect the “653 covers basically every age related damage mechanism community from potential risks.” known, including but not limited to corrosion, brittle fracHe concluded by strongly commending Senator Manture and improper fabrication. “While EPA’s SPCC rule outlines requirements for preven- chin, Senator Rockefeller and Senator Boxer for promptly introducing legislation aimed at safeguarding water supplies tion and preparedness of oil discharges such regulations do from chemical leaks. “Modern standards are strongly not apply to tanks containing ‘non-hazardous substances’ needed in this area, I encourage any effort, any legislative like those found at Freedom Industries. Under existing state reform to follow the basic framework of accident prevenand federal laws these tanks, including tank 396, were not tion, known as the hierarchy of controls - which is an regulated by the state or federal government. effectiveness ranking of techniques used to control hazards “While there are laws prohibiting polluting to waterways and the risk they represent. The further up the hierarchy, with a spill, there are not really any clear, mandatory standthe more effective the risk reduction achieved. ards for how you site, design, maintain, and inspect non “In brief, the most effective accident prevention measures petroleum tanks at a storage facility.” typically involve what is called inherent safety. I realise that The CSB has determined that the secondary containment is a term that has drawn some controversy, but it is really wall - which was composed of cinder blocks and surroundjust an industry-developed concept that focuses on safety ed tank 396 - provided very little protection from a possible in design. For chemical storage tanks like this, the first release. Company documents further show that the wall question that should always be asked is, do they need to was not lined and that tank 396 rested directly on porous be near the water supply for some reason? Unfortunately, material including gravel and soil. in the case of Freedom Industries, the answer would have Moving forward the CSB will closely examine tank 396. been ‘no’. The facility was simply a truck terminal, and its “We plan to complete a thorough internal inspection of the position alongside the Elk River just upstream of the water tank to determine the tank’s wall thickness at the time of intake was a historical anomaly that had tragic consequencthe incident. We will also examine tank design, materials of es.” construction, inspection practices, state and federal overAnother form of inherent safety, or safety in design, is sight of similar tanks as well as existing industry best pracusing corrosion-resistant materials for tank construction. tices including those supplied by the American Petroleum That is something CSB will need to explore further, as it Institute. The tanks in use at Freedom Industries were over determines the failure mode for the tank in question. one-half century old. Considering the best way to improve

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COMAH REGULATION

COMA H – T IM E TO ACT NOW A UK expert in COMAH legislation urges pipeline and logistics operators to act now over fuel re-categorisation

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HOSE WITH RESPONSIBILITY for transporting and storing dangerous substances are being urged by a UK health and safety legislation expert to act now over forthcoming changes to the way fuel will be categorised. New legislation for the control of major accident hazards involving dangerous substances (Seveso III) will come into force from the start of June 2015. But a proposed UK HSE amendment to this could have consequences which organi-

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sations need to be aware of and prepare for now, according to specialists in health and safety legislation Cedrec. The decision to implement changes has been driven by the EU which wants to see improvements in the control of major accident hazards involving dangerous substances. When Seveso III comes it will see a new system of dangerous substances classification come into force to “strengthen the provisions relating to public access to safety information, participation in decision-making and access to justice,

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COMAH REGULATION and improve the way information is collected, managed, made available and shared”. This should tighten up a number of areas that have hitherto been somewhat lax or open to interpretation, improving public access to information and standards of inspection, and will continue to ensure a high level of protection to human health and the environment from major accidents involving dangerous substances. The Seveso III Directive will be implemented through new Control of Major Accident Hazards (COMAH) Regulations and planning legislation which comes under the responsibility of the Department for Communities and Local Government and the devolved administrations in Scotland and Wales. Whole swathes of the UK’s pipeline infrastructure will be affected by the incoming Directive including many owners and operators and suppliers to the sector. However while there has been a significant amount of ‘noise’ concerning the Directive itself, auditor and director at Cedrec Gareth Billinghurst is concerned that many of those responsible for health and safety within their organisations are under-prepared for, or simply unaware of a proposed alteration to re-categorise heavy fuels (HFO) as ‘petroleum products’ from 20 February 2014 – and the implications this will bring. The move proposed by the HSE will have the effect of changing HFO categorisation from its current status of ‘dangerous for the environment’ to ‘petroleum products’, thereby increasing significantly the qualifying threshold inventories before the requirements of COMAH, and Planning Hazardous Substances, become applicable. In the UK, it is still unclear what this will actually mean for the next generation of COMAH and an industry-wide consultation has been completed to find out whether the amendment explains what businesses need to do and the costs and benefits of the proposed changes. According to Billinghurst, an additional concern with such re-categorisation is that many organisations could come within the requirements of the

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Cedrec’s Gareth Billinghurst says organisations need to ha e A on their long distance radar and need to prepare now for the new legislative landscape

Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH). “REACH is now well underway, as substances are evaluated and tested. The result of this could mean the chemicals you use and produce are re-classified as a higher risk or even restricted. You could then fall into a different tier under COMAH (lower or higher) and have different requirements. “There is still uncertainty surrounding the new Directive, with the results

of the consultation over the HSE’s proposed amendments not due until the summer,” said Billinghurst. “But what is clear is that change is coming and attempting to navigate through any change will be difficult even for those with responsibility for compliance, facilities management and health and safety. “Organisations need to have COMAH on their long distance radar and start to prepare themselves now for the new legislative landscape.” Sunderland-based Cedrec says it takes environmental and safety legislation from the UK and Europe and makes it easy to understand. Specialising in both subscriptions and as consultants, the company can help with legal compliance if clients have a management system like ISO 14001 or OHSAS 18001 in place, or are working towards one. Cedrec’s online system is updated daily as new legislation and policy comes in. Subscribers can locate and access all the information required using a unique structure, clear menus and custom built search engine. Cedrec also offers a one-to-one consultancy service covering key aspects of management systems including legislation compliance reviews, registers of legislation, gap analysis, aspects and impacts and even desk research. www.cedrec.com

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OVERFILL PREVENTION

GAU G ING THE WAY FO RWARD New tank gauging technology takes overfill prevention to the next level, writes Carl-Johan Roos

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RE YOU STILL using old mechanical point-level gauges for overfill prevention? Technology has changed and there are safer and more efficient options available today. The new API 2350 overfill prevention standard combined with IEC 61508 (SIL)-certified continuous level measurement also for the HiHi-alarm is the path forward to meet current, and future, safety requirements. Nowadays, petroleum tank spills are major news that can easily escalate from local media to regional and global publicity. The Buncefield overfill accident, which caused Europe’s largest vapour cloud since the Second World War, is by far the most famous example. But new accidents are continuously occurring and there are several examples of terminals that have gone into bankruptcy due to oil-spills. Safety is becoming increasingly important and the underlying driver is clear: a gradual reduction in acceptable societal risk throughout the entire world. The same trend also applies to tank farms and bulk liquid storage facilities where it is driving development of new technologies, standards and best-practices toward safer options.

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Emerson and the API committee chairman have developed a guide and checklist to A for the interested reader a aila le at api com

Overfill prevention is important for numerous reasons. Human safety, environmental protection public relations, clean-up costs and indirect effects such as downtime are pretty obvious. Maybe less obvious is that by better knowing what’s in the tank the

insurance cost can be reduced, while simultaneously improving the operational efficiency due to, eg, increased tank utilisation and higher transfer speeds. Often petroleum products with high volatility and flammability are stored. Mixed with the right amount of air and an ignition source this combination can cause a vapour cloud explosion, which is exactly what happened at Buncefield. Besides causing considerable damage to surrounding tanks and nearby assets, vapour cloud

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explosions are also a realistic and very serious safety concern for on-site employees.

TECHNOLOGY TRANSFORMATION Overfill prevention technology is currently undergoing the same transformation as tank gauging technology once did. The establishment of API 2350, which is becoming the globally recognised overfill prevention standard, is a major step in this development (compare with API 3.1 for tank gauging). New reasonably priced products have emerged that allow for replacement of mechanical and electro-mechanical point-level switches to new and modern electronic level gauges. Traditional and wellproven tank gauging concepts, such as continuous level measurement are

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“Petroleum tank spills are major news that can easily escalate from local media to regional and global publicity”

rapidly becoming the preferred industry choice and the new best-practice also for overfill prevention sensors. This transformation is on-going and inevitable. Although traditional switches are well-known, inexpensive

A o e: A for le el and o erfill prevention. An increasingly common view when old mechanical level switches are replaced with modern solutions

and easy to understand the inherent problem with these will always be that it is difficult to know whether they are working or not. To prevent and mitigate overfills from occurring, a multitude of independent protection layers can be used (IEC 61511-1 figure 9). Secondary containments and dikes are commonly used passive protection layers, but these are only for mitigation. Commonly used for prevention is a combination of a basic process control system (BPCS) and an independent safety layer. Often the BPCS is referred to as the ‘Tank Gauging System’,

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OVERFILL PREVENTION and the safety layer is referred to as the ‘HiHi Level Alarm’ or ‘Overfill Prevention System’. A common misperception, inevitably caused by the nomenclature, is that the safety layer is the most critical component. This should not be the case in a properly designed system; the tank gauging system is continuously in operation 24/7 and is the operators’ primary tool to prevent overfills from occurring. The overfill system shall only be used in exceptional circumstances, and the more seldom the better. Exchanging old mechanical tank gauges to a modern tank gauging system is therefore one of the most important activities to reduce the risk for overfills. Another benefit with most modern tank gauging systems is built-in temperature compensated leak-detection, which can be used as a critical tool for early detection of small and gradual spills due to, eg, corrosion.

KEY STANDARDS From a global perspective there are two key standards for overfill prevention: API 2350 and IEC 61511. These

“Exchanging old mechanical tank gauges to a modern tank gauging system is therefore one of the most important activities to reduce the risk for overfills.”

standards establish the best practices that are accepted by most judicial systems. In the past it was relatively common with country specific requirements and deviations (eg, TÜV/DIBt WHG in Germany), but also these are slowly being influenced and replaced with their global counterparts. API2350 Ed. 4 is an application specific standard for ‘Overfill Protection for Storage Tanks in Petroleum Facili-

ties’ that covers a wide range of topics associated to this subject. IEC61511 on the other hand is a generic functional safety standard targeted specifically towards “Safety instrumented systems for the process industry sector”. Therefore compliance with IEC61511 is usually an excellent way, and sometimes even required, to comply with API 2350. However, this is not a sufficient requirement because the two standards complement each other perfectly. The new API 2350 Ed. 4 standard is an indirect consequence of the Buncefield accident. As a response to this accident, a large proportion of the industry gathered under the American Petroleum Institute (API) framework to develop a better overfill prevention standard. Although the API name indicates otherwise, the committee had a global representation covering tank owners and operators, maintenance personnel and vendors. Also UK government officials participated in the committee to ensure that the result from the Buncefield investigation was leveraged to the fullest. It is however

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OVERFILL PREVENTION important to understand that this is a consensus standard covering the bare minimum requirements; alternative solutions that provide equal or better safety are acceptable if they can be technically justified. Another necessity to get the standard through the consensus process was to limit the scope. API 2350 is intended for atmospheric storage tanks above 1,320 US gallons/5,000 litres containing petroleum products. It is not intended for underground tanks, LPG/LNG tanks, or pressure vessels. The principles however are generic and may with proper pre-cautions be applied also outside the standard’s designated scope. API 2350 has been inspired by IEC61511’s life-cycle approach. The entire journey from requirement specification to commissioning, and from operations to decommissioning is covered. An essential part of this is the risk assessment and management system, which now both have become mandatory parts of the standard. A clear indication of the importance of these systems is the Buncefield accident, where the electro-mechanical servo gauge had stuck 14 times in the three months prior to the accident. With a proper management system, this problem could have been solved. All tank farms are different and the risks vary based on, for example, location, products stored, tank integrity and operational procedures. API 2350 categorises tanks based on attendance level and degree of complexity. Basically any modern tank farm will be classified as a category 3 facility, which has to be equipped with (at a minimum):

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A o e: ost ulk li uid storage tanks will be characterised as category 3 according to A ategor tanks are re uired to ha e an automatic tank gauge and an independent o erfill prevention system

● 1 x Automatic Tank Gauge (ATG) and ● 1 x Independent Overfill Prevention System (OPS) Automatic overfill prevention systems in new facilities shall be compliant with IEC 61511 according to API2350. For existing facilities, an alternative approach (‘loop-hole’)

“All tank farms are different and the risks vary based on, for example, location, products stored, tank integrity and operational procedures.”

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A o e: E L certified e uipment is no a re uirement for automatic o erfill pre ention s stems in ne facilities according to A

where the automatic overfill prevention system complies with Annex A in API 2350 is also available. However, as it has turned out, this Annex A approach usually requires more or equal amount of work than the IEC61511 approach, but without being future-proof.

2-WIRE GAUGES The on-going safety trend has also spurred equipment manufacturers to develop new products. An evident advancement in this direction is that nowadays there exist 2-wire radar level gauges certified according to IEC 61508 for up to SIL 3 overfill prevention applications. This is a breakthrough which finally allows the usage of well-proven tank gauging technology also in overfill prevention systems. With safety applications and overfill prevention systems a requirement for device verification emerge. API2350

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requires point-level gauges to be proof-tested every 6 months, and other equipment at least annually (unless a technical justification says otherwise). For point-level gauges, the proof-test has traditionally been performed on the tank-roof, using labour-intensive procedures like water tests, pushing buttons or pulling levers. But as a tank operator explains: “I don’t know if my level switch works right now even if I proof-tested it according to schedule.” Fortunately proof-testing is one of the fields where new continuous level measurement technology can change the entire industry’s behaviour. The most obvious advantage is that the operators obtain two independent measurements that can be compared with each other. Often a fairly generous deviation alarm (eg, 2ins/5cm) is sufficient to help the operators detect any problems early while at the same time avoiding false-alarms. Some users refer to this testing technique as on-line or 24/7 proof-testing. Nevertheless; plenty of research is on-going in this field and it would be no surprise if devices soon exist with the capability to perform proof-test remotely.

Requirements are continuously changing, and overfill prevention is no longer synonymous with mechanical level switches. The completely revised API-standard (2350) for overfill prevention is a major milestone that will streamline and drive the industry forward together with IEC 61511. Equipment that traditionally has been used only for tank gauging can also be used for overfill prevention and will thereby play a major role in this transformation. Although traditional level switches can still be used, the most efficient and future proof solution today appears to be an IEC61508 (SIL)-certified overfill prevention sensor that measures the level continuously and independently of the automatic tank gauge.

Carl-Johan Roos is business development manager with Emerson Process Management

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TANK WORLD EXPO PREVIEW

o

MIDDLE E AST T HE CEN TR E OF T HE WO R L D Tank World Expo takes place on 14-15 April 2014 at Dubai World Trade Centre, Dubai, UAE. Storage Terminals Magazine is pleased to be the Official Media Partner for the event which is the definitive meeting place for over 1,000 leading tank storage experts to meet, discuss best practice and find new solutions

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HE MIDDLE EAST AND Africa has redefined its role in worldwide energy markets and is now at the centre of global oil and chemical flows. Capacity continues to increase and major engineering projects and upgrades are underway across the whole region. Innovation, collaboration and training are key to developing cost-effective, sustainable and safe terminals and driving this growth and innovation. Working in collaboration with an industry steering committee, including ENOC, Saudi Aramco and Vopak, the senior level paid-for congress will cover best practice across the sector, identify trends and opportunities. Topics also include finance and investment, regulations and standards,

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terminal profitability and successful upgrades and engineering. An accompanying exhibition also features free-to-attend training workshops. The event will be officially opened by H.E. Eng. Suhail Mohamed Faraj Al Mazrouei, Minister of Energy, UAE. The congress features many senior speakers from the industry in the Middle East and beyond, including: ● Dr. Matar Hamed Al Neyadi, Undersecretary, Ministry of Energy, UAE ● Peter Broers, CEO, Port of Duqm ● Sami Habbab, CEO, Delta Rubis ● Tony Jouzy, Director, Solvochem ● Richard Cotton BSc Frics, Head of Marketing and Leasing, Basra International Oil & Gas Hub (BIOGH)

● Ashraf Mabrouk, Khalifa Port Habour Master, ADPC ● Riyad Sulaiman, Capital Investment Planning Engineer, Saudi Aramco ● Paul Nix, GM Terminal Operations, Gulf Petrochrem ● William Knowles, Downstream Facilities Planning Division, Saudi Aramco ● Capt. Naveed Azad, FOTT Operations Manager, Port of Fujairah ● Waddah Ghanem, Chief Envirnoment, Health Safety and Compliance Officer, ENOC ● And many more The full programme can be viewed and downloaded at www.tankstorageforum.com/ tankworldexpo

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TANK WORLD EXPO PREVIEW

PROJECT FOCUS BASRA OIL AND GAS INTERNATIONAL FREE ZONE One of the most exciting developments in the Middle East is the Basra Oil and Gas International Free Zone, in Iraq. The agreement for this public private partnership between the Iraqi Free Zone Authority and BIOGH was signed in September 2012 with the specific aim of building a fullyintegrated oil & gas logistics facility in the Free Zone at Khor Al Zubair in the Basra Governorate. The specialised Free Zone will cover 11 million sqm and be located next to Iraq’s strategic oil & gas port in Khor Al-Zubair. The Zone will provide a mixed-use site for manufacturing and storage and fulfil the increasing requirements of Iraq’s oil & gas sector. The project is forecast to employ and train 10,000-15,000 local employees and professionals for the long-term benefit of local Iraqi communities. The Basra Oil and Gas International Free Zone will provide a broad range of tenants with the highest quality facilities, state of-the-art security and technology, and excellent transportation access and convenience. There will also be a variety of residential accommodation. Tenants will have the option of renting land and building their own facilities, or they will be able to rent complete buildings. Such facilities will be supported by dedicated Customs and immigration services and a full range of life and business support offerings. The part of the site closest to Zubair port is planned for oil tank storage and there is much interest from a number of companies either active in or looking at the importing of refined fuels and related products. The Free Zone’s facilities are in close proximity to the four giant oilfields: ● Rumaila – distance 85km – operated by BP ● West Qurna – distance 110km –

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The project is forecast to employ and train 10,000-15,000 local employees and professionals for the long-term benefit of local Iraqi communities.

A o e: ap of principal oil fields near Basra; Left: The specialised Free Zone ill co er million s m and e located ne t to ra s strategic oil gas port in hor Al u air

Phase I operated by Exxon Mobil/ Shell and Phase II by Lukoil ● Zubair – distance 35km – operated by ENI ● Majnoon – distance 125km – operated by Shell Richard Cotton, head of marketing and leasing at the Basra International Oil & Gas Hub is another expert speaker at Tank World, and will cover the latest developments in the project.

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8:36 AM

TANK WORLD EXPO PREVIEW

AN INTERVIEW WITH SAMI HABBAB, CEO DELTA RUBIS Tank World Expo talked to Sami Habbab, the CEO of Delta Rubis, the leading independent liquid fuels storage player in the Mediterranean region and one of the expert speakers at Tank World Expo. Delta Group entered the oil industry in 1984 as Delta Petrol with its floating storage facility in Iskenderun, Turkey. Subsequently,

the company built and operated its first bulk liquid storage terminal in Ceyhan, Turkey and then built another one in Poti, Georgia to serve Caspian oil exports. In 2007, the capacity of the Ceyhan Oil Storage Terminal was doubled and reached 650,000 cbm. In January 2012, Rubis Terminal partnered with Delta Petrol to form Delta Rubis.

● Tank World Expo (TW): It has now been two years since Delta Petrol partnered with Rubis Terminal to become Delta Rubis. What have you learned in this time? Sami Habbab (SH): It’s been a great two years as together we’ve been able to grow and develop quickly. As Delta Rubis, we have moved forward with determined steps and with a new strategic vision and also been able to seek out new expansion opportunities in Turkey, Black Sea, the Mediterranean and Middle East regions not only in liquid fuel storage, but also in side sectors such as LPG, liquid chemicals, biofuels. The progressive sophistication of oil products and increased volatility in the global oil markets requires flexible value added and diverse logistics services in global markets which Delta Rubis is now able to provide.

● TW: One of the major projects you are working on is the facility at Ceyhan. Can you update us on that?

The Ceyhan Terminal is highly strategic due to its proximity to

SH: We have been steadily developing our Ceyhan Terminal the orld s second largest pro en oil reser es in ra and the termini of two important pipelines to cater for multi-product servicing with high blending capability and bunker barge loading berth● TW What are some of the challenges ing station. Its location is highly strategic that the industry faces at the moment? due to its proximity to the world’s second “We have moved forSH: I think the principle one is that although largest proven oil reserves in Iraq, and demand remains steady but backwardated because it is a key part of an increasingly ward with determined market structure provides the challenge. important hub of petroleum activity at the Prices and financing costs are higher, as Kirkuk-Ceyhan pipeline steps and with a new are the costs of carry compared to the past (ITP) terminus and the terminus of the strategic vision and and so there are still economic costs still Baku-Tiblisi-Ceyhan (BTC) pipeline. have to be managed effectively. We are just about to complete our also been able to seek 2.3km jetty which will hold six vessels out new expansion ● TW: Thanks and just on the reverse, simultaneously with maximum acceptance what are the opportunities for Delta Rubis size of 200,000 dwt and we’ve already opportunities” in the coming year? built 11 new storage tanks to provide SH: We are continuing to grow and develop new service for bunker and local Ceyhan as a truly worldwide fuels hub which market import demand. Then we can further maintains our competitive leadership move onto completing the superstructure position. By this time next year Ceyhan will of the jetty. be close to full completion and we are looking forward to seeing The Ceyhan Terminal unites the most recent developments in the fruits of our investment to serve long haul vessels with more storage technology and Delta Rubis’s technical experience of 25 diversified business. In addition we will, as always, be supporting years offers service substructures, such as private tanker heating our growing targets with constant and sustainable development system, commodity exchange, blending, additive injection, at site plans and continue to adopt as a main pillar of our success, an inspection and quick loading-unloading, services; truck loading articulate and successful implementation of internationally accepted gantry system and such services creating added value improves high service offering focusing on quality and HSE (health, safety & efficiency, profitability and competitiveness of the customer. environment). We are on track to for a completion date of early 2015. In It is an exciting year ahead and we hope to continue our efforts addition we are ensuring that the facility offers the option of future and activities to make us stronger than ever. expansion to match continued growth.

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TANK WORLD EXPO PREVIEW

INSIDE THE INDUSTRY EMIRATES NATIONAL OIL COMPANY (ENOC) Since its establishment in 1993, ENOC has grown significantly into an increasingly broad range of business ventures and now owns directly or indirectly more than 20 subsidiaries. The group operates through five business segments; supply, trading & processing (condensate and gas processing and oil trading), marketing (of aviation fuel, lubes, chemicals and industrials product), retail (retailing fuel and non-fuel services at petrol stations), exploration & production (development and production of oil & gas) and terminals. In the words of Saeed Khoory, CEO: “ENOC provides the energy behind Dubai’s phenomenal growth. Supporting the oil, chemicals, gas, aviation, shipping, liquid storage, information technology, retail, travel and real estate industries, the Group touches almost every facet of the Emirate’s development and puts its name firmly on the overseas arena.” Drawing on the growth of the United Arab Emirates as a strategic hub for global trade and aimed at meeting the fast-growing demand for bulk liquid terminalling, ENOC created Horizon Terminals Limited (Horizon) in 2003. Operating from the UAE as a holding company, Horizon consolidated the company’s existing terminal investments and is expanding the business globally. Horizon has petroleum and chemical storage facilities across the UAE. The independent chemical terminal in Jebel Ali caters to the widest range of bulk liquid chemical products handled in the region, both for inland consumption and for re-exports. The Jebel Ali facility has a capacity of 54,401 cbm through 59 tanks. Additional facilities provided by the terminal include heating and chilling for the tanks and bulk liquid nitrogen for blanketing, inerting and pigging. The terminal has eight stainless steel blend vessels with 200 cubic horizontal buffer storage tanks and dedicated

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he

ori on erminals facilit in angier

loading gantries and recirculation facility. A joint venture of Horizon and Chevron, EPPCO International (EIL) principally handles domestic fuels such as gasoline, diesel gasoline, fuel oil, asphalt and MC asphalt supplies. Meeting the aviation requirements of Dubai and the Northern Emirates it offers bunkering, re-exports and strategic defence storage. With a capacity of 936, 755 cubic metres through 55 tanks, the terminal located in Jebel Ali is also central to the business segment operations in the UAE. Since its incorporation, Horizon has also expanded from its terminals in UAE and Saudi Arabia as of 2003, to now cover Singapore, South Korea, Djibouti and Morocco. Horizon’s flagship subsidiary, Horizon Singapore Terminals Private Limited (HSTPL), is incorporated in Singapore. It is situated on Jurong Island, the petrochemical hub of Singapore and the world’s top bunkering port by volume. The strategic location of the terminal on the south-western quadrant of Singapore provides for smooth marine traffic movements for tankers that call at the facility, ranging from very large crude carriers (VLCC) to small bunker barges. With a total capacity of 1.25 million cbm through 59 tanks, the terminal addresses the storage, handling and blending requirements of oil

orocco

ic courtes of E

companies of majors, traders and bunkering companies. Another major facility is found in Arabtank Terminals Limited, located in Yanbu, Saudi Arabia. It is the Kingdom’s first independent storage facility and with ‘bonded storage status’. It has a total capacity of 287,828 cbm built on 26 tanks for storing petroleum and chemical products. In Djibouti, Horizon Djibouti Terminals Limited serves one of the world’s major shipping lanes and a vital trade route as well as access to the Horn of Africa’s local markets. Other associate and join ventures include terminals in South Korea and the Port of Tangiers in Morocco. With such a broad portfolio and ambitious goals it’s no wonder that ENOC/Horizon aims to become the largest independent terminal service provider in bulk oil storage in the Middle East, Africa and the Mediterranean while maintaining a leading position in the Far East region. ENOC Group is exhibiting at Tank World Expo and Waddah Ghanem, chief environment, health, safety and compliance officer will be speaking

To keep abreast of the issues to be discussed at Tank World Expo, as well a number of interesting articles on the world of tank storage visit: tankworldblog.wordpress.com

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BUSINESS PROCESSES

AGAINST THE GRAIN Descartes’ Customs solution supported a business transformation at Botlek Tank Terminal

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otlek Tank Terminal (BTT), a tank storage company based in Rotterdam, transformed its core business from the storage of grains to the storage of oils with the help of Descartes’ advanced European Customs connectivity and compliance systems. BTT stores and handles a wide range of fluids in the Botlek area of Rotterdam. The new and modern tank terminal is easily accessible by sea, river, road and rail. It offers a 420m platform and has its own train loading and unloading dock. BTT will expand from the current 34 tanks with a storage capacity of 200,000 cbm to 750,000 cbm. However, the transition from storing grains to oils was a challenging one, particularly so in the area of Customs and duties. “In the European oil storage business, the communication and exchange of documents with Customs authorities is mission-critical, much more so than with grain storage. With excise amounts in the millions of euros and operating permits at stake, the clearance and duty declaration

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process needs to be completely accurate,” according to Charles Smissaert, managing director at BTT. “Descartes’ solutions and expertise were important elements in finalising the re-engineering of our processes and integrating our systems to support the new requirements of our business and our strategic growth plan.” Descartes’ Customs Compliance solution provides BTT with seamless connectivity to European Customs authorities and is integrated with BTT’s warehouse management system (WMS). The Descartes solution retrieves data from the WMS and aggregates Customs duty values and other data. Customs clearance and duty declarations are then processed electronically and automatically. The Descartes software also keeps track of stock and transactions related both to bonded and non-bonded goods, as well as providing detailed monthly transactional reports to Customs authorities. “Working with BTT during the transition of its core business posed unique and exciting challenges. Our efforts in developing optimised workflow

and compliance capabilities for the tank terminal industry have resulted in a strong solution portfolio that helps organisations, like BTT, ensure compliance, maintain control, improve efficiency and enhance profitability,” said Fred van der Heide, vice president of product strategy at Descartes. “We are proud to have contributed to BTT’s success and that our joint work helps set a new standard for the tank terminal industry.” Descartes software is focused on improving the productivity, performance and security of logisticsintensive businesses. The group has over 172,000 parties using its cloud-based services. Customers use modular, software-as-a-service solutions to route, schedule, track and measure delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; file Customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multi-modal logistics community.

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Storage Tank Fire Protection

Tailor-made fire protection for industry’s jumbo storage tanks. With over 200 successful fire responses worldwide since 1980, WILLIAMS is ready to serve you when you need us most. WILLIAMS offers portable TYPE III response solutions, such as our BIG GUN Series of RANGER3, AMBASSADOR and BATTLER TRAILERS. In addition, we offer fixed and semi-fixed tank protection systems, like the rim-mounted AMBUSH unit. Contact WILLIAMS FIRE & HAZARD CONTROL for site assessment, pre-planning, equipment rental, localized incident logistics, response deployment and response training.

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Be trained to respond with confidence. May 4-8, 2014 Beaumont, TX / Register online: www.williamsfire.com WILLIAMS XTREME Industrial Fire & Hazard Response School will instruct you on successful large-volume response tactics and key control logistics with a focus on incident recognition, foam proportioning and large-volume equipment applications. The week-long event includes: in classroom presentations, hands-on equipment applications and live fire response exercises focused on bulk storage, pressure vessels, transportation and pipeline incident scenarios involving flammable liquids and gases. Who should attend? Fire chiefs and brigades, HS&E managers, fire protection engineers, facility managers and other fire response personnel. RESPONSE | EQUIPMENT | TRAINING www.williamsfire.com l 24-hour emergenecy line +1 409 727 2347

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SAFETY

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RANSPORTING crude oil, petroleum products and natural gas liquids is now under considerable public scrutiny. The ongoing debate about the northern extension of TransCanada’s Keystone XL pipeline project and several high-profile incidents within the past year involving shipments of hazardous liquids via rail cars in the United States and Canada have focused attention on how safely increasing supplies of hydrocarbons and products travel across North America. Operators of liquid pipelines in the USA have reported significant improvements in various safety statistics since the turn of the century. Recently, two trade groups that represent them – the Association of Oil Pipe Lines (AOPL) and the American Petroleum Institute (API) – jointly launched the Pipeline Safety Excellence initiative, an industry-wide programme to improve liquid pipeline safety performance. At the same time the industry points to a 62 percent drop in pipeline incidents over the past 10 years. “Pipelines are the safest way to transport the energy and this new Pipeline Safety Excellence initiative reflects the commitment of pipeline operators to make them even safer,” said Andy Black, president and CEO of AOPL. “Our members strive for zero accidents and are committed to continuous safety improvement in pursuit of that goal. Developing pipeline infrastructure supports the economy by creating privately-funded jobs and ensuring the US has access to the energy resources we need through an extremely safe mode for transporting energy products,” added Peter Lidiak, API’s pipeline director. Pipeline Safety Excellence is an industry-wide initiative by the 50-plus pipeline operating members of AOPL and API. It reflects the shared values and commitment of pipeline operators to building and operating even safer pipelines. Pipeline operators transporting crude oil, petroleum products such as gasoline, diesel, home heating oil and jet fuel, as well as natural gas liquids such as ethane and propane, are increasing the safety of their pipelines

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STOPPING THE LEAKS Leading pipeline operator trade bodies have launched a safety excellence initiative as North America scrutinises the transport of hazardous materials and improving the safety performance of their companies through a number of initiatives. ● Shared pipeline safety principles with goals such as zero incidents and every day ways of doing business such as continuous improvement to drive improved safety performance ● Continuous industry-wide pipeline safety efforts - where pipeline operators work together, pool resources, and share lessons learned through industry-wide improvement teams ● Annual pipeline safety reporting - measuring and reporting industrywide pipeline safety spending and performance to the public ● Annual pipeline safety strategic planning - developing a pipeline safety strategic plan guiding industry-wide efforts over the coming year to im-

prove safety. With the launch, operators are also releasing their 2013 Annual Liquid Pipeline Safety Performance Report and Strategic Plan, reflecting key elements of the initiative. The industrywide performance report documents a 62 percent drop in pipeline incidents over the past 10 years. This performance improvement comes as operators reported spending US$1.6 billion evaluating, inspecting and maintaining their pipelines. The result is 99.999 percent of crude oil and petroleum product delivered by pipeline reaches its destination safely. Additionally, pipeline operators plan strategic efforts in 2014 to improve inspection technology, and develop a new industry-wide recommended practice on detection and response.

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&

TECHNO LOGY AUTO M AT ION WHAT’S NEW IN PROCESS INDUSTRY TECHNOLOGY & EQUIPMENT

BUMPER RING FOR GREATER SAFETY

F

ort Vale has introduced a new safety feature to its 4ins Safeload semiautomatic petroleum bottom loading coupler. The body housing now incorporates a rubber ‘bumper ring’ around its circumference which affords added security of the interlock by limiting the severity of shock loads transmitted through the body casting. Fort Vale believes that it will also contribute to the durability and longevity of the coupler. The Safeload with bumper ring has undergone extensive in-house impact testing to ensure that a shock load was absorbed, leaving the interlock engaged and the coupler securely closed. The bumper ring itself is manufactured from a rubber compound. Independent tests confirm that it has a surface resistivity significantly less than the 1 G Ohm, as required by IEC 60079-0:2011 clause 7.4.2 and EN13463-1:2009 clause 6.7. As of January 2014, all new-build 4ins semi-automatic Safeload couplers are fitted with the new bumper ring as standard, and at no extra cost to the customer. Those customers who wish to retro-fit the bumper ring to their Safeload couplers in service will be provided with a kit and

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The 4ins Safeload API coupler with ‘bumper ring’

fitting instructions. Fort Vale continues its commitment to improving safety in the industry. It recently issued a Safety Bulletin to Safeload users recommending an extra visual check both prior to and after using the coupler and cautioned that all recommended operating procedures be closely followed. Its

design manager commented: “Fort Vale works very closely with leading tank farms and is always keen to contribute to safety improvements in any way that it can. We believe that Fort Vale is the only manufacturer to date to have introduced this important safety feature to the market.” www.fortvale.com

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TECHNOLOGY & AUTOMATION

n o pro ided Goil with a pump and metering trailer design which met all of the company’s expectations

IFC’S AFRICAN ADVENTURE

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anker equipment supplier IFC Inflow recently built and designed a mobile fuel transfer system for a leading oil company in Africa. The client, HannOil, and Ghanaian oil supplier Goil wanted to achieve a high level of performance in transferring fuel to vessel. Getting fuel from shore to ship is a time-consuming task and Ghana’s demanding marine environment and rough terrain make shore-to-ship fuel transfer a complicated task which can have costly repercussions if not done properly. Goil stipulated several key characteristics that the solution needed to feature. The new system required the incorporation of fuel testing in addition to the ability to conduct safe and accurate fuel metering with faster loading, all as a mobile application. IFC Inflow quickly provided Goil with a pump and metering trailer design which met all of the company’s expectations. IFC Inflow then produced two identical shore-to-ship fuel transfer trailers which were fitted with diesel engine-powered

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pumps with flow rates of 1,500 l/min. In addition, bulk flow meters, fuel sampling points, air elimination and mechanical registers were incorporated. Goil’s new trailers prevent expensive fuel spillages with the installation of stainless steel drip trays to catch any leaking fuel. The design also considered the harsh marine conditions in which the trailers would be working and so all pipework was manufactured in stainless steel. A 4ins

bunker sampling point was fitted to each trailer, meeting the client’s requirement for fuel sampling. The end result was that Goil was supplied with mobile, high-metering accuracy and the capability for regular testing. Director of HannOil Hanny Mouhtiseb commented: “IFC has been efficient, professional and provided excellent service to HannOil and our clients. We are happy doing business with them.” www.inflow.co.uk

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What if total tank protection was less puzzling?

It can be, with Emerson Single Solution Protection. Mismatched and incompatible multi-vendor systems have long been a pain point for companies seeking total tank protection. Now, Emerson is doing something about it. We call it Single Solution Protection—proven Fisher ® tank blanketing regulators teamed with top-rated Enardo flame arrestors, pressure-vacuum relief valves, and emergency vents to deliver seamless compatibility. It’s the latest step in our ability to provide the widest possible array of environmental protection and safety equipment, expertise, and unparalleled service across a full range of oil, gas, chemical, and related industries worldwide. Take the puzzlement out of total tank protection. Call on Emerson to put it all together for you.

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TECHNOLOGY & AUTOMATION

INCREASED CAPABILITY FOR PORTABLE ANALYSER

T

he new InfraCal 2 Analyzer, recently introduced by Wilks, for oil in water measurements now offers additional features to the already established and widely-used line of InfraCal TOG/TPH Analyzers. These features include increased sensitivity for sub-ppm measurements, multiple calibrations, unlimited data storage, optional internal battery pack, password protected instrument settings, and ability to tag each measurement with analyst, location and date/time information. The result is a compact, rugged package, weighing less than 6lbs., with no moving parts and the low maintenance qualities found in other Wilks analyzers. The InfraCal 2 Analyzer provides improved sensitivity and detection limits for a variety of on-site oil in water measurements, such as sub-ppm detection levels of oil in wastewater going into inland waterways, FRAC water and produced water discharges from oil drilling. Models are available for use with infrared transparent solvents, as well as hexane, for the extraction process. While designed for field applications, InfraCal 2 is equally at home in the analytical laboratory and will provide quantitative measurements easily, routinely and economically. Wilks says the InfraCal 2 makes it economical and easier than ever to move repetitive measurements from the lab to the actual analysis site where they can be routinely handled

by non-technical personnel. On-site measurements using the InfraCal 2 Analyzer take less than 15 minutes and eliminate the wait for off-site lab results which can take hours or days to receive. www.WilksIR.com

REMEDIATION PROCESS PATENT Kleinfelder has patented a new remediation process designed to remove contamination from groundwater. The propriety method is applicable to areas where large dissolved plumes of contaminants (eg, nitrates, perchlorate, metals, and other chemicals) are affecting groundwater. The process relies on an underground treatment system consisting of a network of injection and extraction wells with pre-emplaced emulsified vegetable oil or other appropriate reagent. Untreated groundwater is conveyed through the treatment system whereby contaminants undergo bioremediation (or chemical oxidation, depending on reagent selection). The treatment system is smaller in area than the plume and can be located in easy-to-access areas with appropriate soil types, and at convenient depths.

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“Groundwater contamination is often widespread, difficult to access through traditional remediation technologies, and expensive,” said Edward Tyler, a principal professional at Kleinfelder and inventor of the new process. “The remediation process was developed to work around many of these constraints while providing an effective means of remediating large dissolved plumes of contamination. This solution helps reduce client remediation costs, protects human health, and preserves the environment.” The U.S. Patent and Trademark Office issued U.S. Patent 8,580,114 covering the remediation process. This is Kleinfelder’s second patent in an expanding intellectual property portfolio to which the consultancy has exclusive rights. www.kleinfelder.com 107

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FRANKLIN

HIGH INTEGRITY DOUBLE BLOCK AND BLEED PLUG VALVES Service iS the FocuS • Engineering, Design & Support • Industry Leading OTD • Parts and Repair •Assistance After Start-up An industry proven design. Franklin improvements extend service life and performance: • ANSI class 150, 300 & 600 • API 591, 6D, 6FA, 622 Certified •PED/CE Registered •Member of VMA

713-812-7100 | sales@franklinvalve.com | www.franklinvalve.com

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TECHNOLOGY & AUTOMATION

‘BREAKTHROUGH PRODUCT OF THE YEAR’

W

ilden’s Pro-Flo Shift has been nominated as a 2013 ‘Breakthrough Product of the Year’ by Processing Magazine. The award acknowledges products, technologies and service solutions that made significant contributions in the process industry within the past year and are expected to have an impact for years to come. “The Pro-Flo Shift’s advancement in not only performance but also energy efficiency addresses many of the concerns of the modern-day process industry,” said Chris Distaso, director of engineering at Wilden. “We hope that this award will be the first of many recognitions for the Pro-Flo Shift.”

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The Wilden Pro-Flo Shift represents a significant breakthrough in energy efficiency within the AODD pump category, the company claims. Due to its design, the patent-pending Pro-Flo Shift Air Distribution System (ADS) allows Wilden AODD pumps to achieve up to 60 percent savings in air consumption over “all competitive AODD pump technologies, while providing more product yield per standard cubic foot

per minute (SCFM)”. The Pro-Flo Shift not only improves energy efficiency, it also costs 50 percent less than an electronically actuated ADS, adds Wilden. It is submersible, and features plug-and-play operation. Its robust design makes the unit ideal for use in harsh operating environments and includes ATEX compliance for use in potentially explosive atmospheres. The Pro-Flo Shift has fewer operating parts, which equates to less downtime and simple maintenance. It is available in 38mm (1.5ins), 51mm (2ins), and 76mm (3 ins) sizes and features maximum discharge pressures to 8.6 bar (125 psig), maximum flows to 1,056 lpm (279 gpm) and maximum solid-handling size to 13mm (1/2ins). The Pro-Flo Shift is available with maximum suction lifts to 7.2m (23.8ft) dry and 9m (29.5ft) wet. As a recipient of the award, the Pro-Flo Shift was featured alongside other recipients in Processing Magazine’s exhibit at the 2013 Chem Show, held in New York in December. www.profloshift.com

“The Pro-Flo Shift’s advancement in not only performance but also energy efficiency addresses many of the concerns of the modern-day process industry”

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HOW TO MAKE A GREAT THING, BETTER. The MK3 Safeload semi-automatic bottom loading coupler a byword for safety, security and minimum risk of product leakage. But at Fort Vale, we still weren’t satisfied. We noticed that we could make the coupler even safer if we introduced a bumper ring around the circumference, limiting the severity of shock loads transmitted through the body casing. Not only that, but the bumper ring is manufactured from a rubber compound that comfortably exceeds IEC requirements. You might think we’d be charging you extra for all this. You’d be wrong. Maybe this is why it’s the only coupler on the market with a 3 year warranty? Find out more at www.fortvale.com ®

Tel: +44 (0) 1282 687100 sales@fortvale.com

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TECHNOLOGY & AUTOMATION

TORKDRIVE PREVENTS PLANT SHUT DOWN

S

mith Flow Control has launched Tork- and is suitable for oil refineries, power Drive, a device that can be mounted plants, paper mills, water plants and to either the valve input handwheel or chemical processing facilities. TorkDrive directly to the valve input shaft to safeguard withstands temperatures from -56degC the valve from excessive torque. to +100degC, with a torque setting range TorkDrive has two benefits, the maker from 80Nm–500Nm. The device can be says. It prevents valve damage, reducing installed directly to manually operated the need for expensive plant shutdown valves, requiring torque monitoring over and valve replacement 80Nm (Ball, Gear, Gate (through over-torque) & Globe etc). TorkDrive It is a ‘maintenanceand provides vital also benefits from IP65 information regardprotection, safeguardfree’ device, made ing site maintenance ing the device in the from 316 stainless steel most aggressive of requirements. TorkDrive can and is suitable for oil environments. increase valve life as it It also features refineries, power plants, unique clutch plates prevents the operator from applying excesthat are controlled by paper mills, water sive force when closing a series of calibrated plants and chemical compression springs. the valve, protecting the valve seat. It conTwo spring-set configprocessing facilities. trols the torque applied urations are available, when operating a a low range TorkDrive valve, ensuring that the same force is used unit offering a maximum torque output regardless of the strength of the operator. range between 80Nm–280Nm and a high It can be incorporated into plant range unit offering 250Nm-500Nm. Each maintenance systems and schedules. It unit is factory set before installation and is also set to a predetermined maximum the unit can be adjusted to suit the host torque and, if during the operation cycle of equipment’s torque requirements using a the valve, the operating torque increases calibrated setting scale within the body of above the maximum limit, the TorkDrive will the device. Each spring set has a unique slip, indicating an irregular valve condition. colour code, thus ensuring that the correct This will alert the operator to report the torque range is always used. valve status to site maintenance, rather TorkDrive comes complete with a tool than continue to apply force. for making fine adjustments. The TorkDrive TorkDrive has a compact design, weighis supplied with bespoke adaptation to the ing less than 4kg, despite an all-mechanihost valve and its own operating handcal construction. It is a ‘maintenance-free’ wheel/lever. device, made from 316 stainless steel www.smithflowcontrol.com

NEW DISTRIBUTORS Dantec has appointed a Russian distributor, 000 Industrial Hoses. The association will benefit Russian clients operating in the petrochemical and associated industries and means that Dantec’s composite hoses will now be distributed across all regions in Russia. Shipment will be provided from 000 Industrial Hoses’ central warehouse in Moscow as well as eight other strategically located branches. At the same time, Dantec has also teamed up with Belgian distributor Articom. Articom was founded in 1964 and has a strong reputation for providing reliable technical advice and industrial applications to the Belgian market.

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NEW MD FOR VERWATER NETHERLANDS

J

acco van der Kamp has been appointed as the new managing director of the Dutch companies within the Verwater Group. Van der Kamp, 46, will report to the group CEO Cor Kloet. As managing director, Van der Kamp will focus primarily on improving the performance of the Dutch operating companies and strengthening the position of the Verwater Group in the Netherlands. He has extensive experience as manager of operations and a director at several large companies that have business relationships with Verwater, both in the Netherlands and internationally. He previously worked at Lyondell, Koole and most recently at Argos Energies. van der Kamp commented: “Verwater is an important player in the Dutch market and I see plenty of opportunities for growth here. The demand for construction, maintenance and jacking storage grows in the Netherlands and I look forward to this new challenge.” The Verwater group of companies specialises in the construction, maintenance and jacking of tanks. The company was founded in 1922 and has developed from a small civilian contractor into a large contractor for the international tank terminal market. The group employs over 800 staff around the world, and has offices in the Netherlands, Belgium, France, Turkey, Singapore, Oman, Nigeria and the USA. www.verwater.com

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Think Tank Craftsmanship and safety. Quality and flexibility. Innovation and progress. Many claim it, we deliver it.

Noorderlaan 710, Haven 540 B-2040 Antwerp T +32 3 568 81 28 ivens@ivens-cb.be www.ivens-cb.be

Ivens a name renowned in the port of Antwerp and far abroad. Ivens builds storage tanks for chemicals and fuels. We are a family run business with a rich tradition and an excellent reputation. Apart from its impeccable range of services, Ivens also takes care of pipelines, steel constructions and floating roofs for tanks. Our huge range comprises, among others, engineering, special transports and crane activities. All this is executed from A to Z by an internal and experienced team which always disposes over the latest systems and equipment.

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

TANK AND STEELCONTRACTORS

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TECHNOLOGY & AUTOMATION

TOP 10 TRENDS IN VESSELS TRACKING IT provider PortVision is sharing its projections for the top vessel-tracking trends that it believes will have the greatest impact on the maritime industry during 2014. The company’s projections span a wide range of maritime market sectors and business processes, across an extensive variety of port, terminal, dock and waterway environments. “Our leadership and experience working with more than 2,000 vesseltracking technology users gives us unique perspective on the trends driving innovation and advances in this industry,” said Dean Rosenberg, PortVision chief executive officer. “The ability to make better business decisions through improved vessel visibility has never been more important for maritime professionals than it is today, as they face an unprecedented array of interrelated challenges related to cost, competitiveness, traffic logistics, safety, and sustainability requirements and expectations.” PortVision has identified the following trends to watch in 2014.

1

IMPROVING REAL-TIME VISIBILITY AND DECISION-MAKING

Advances in AIS-based vessel-tracking tools and technology that move the industry beyond simple ‘points on a map’ to on-demand and immediately actionable business insights and intelligence.

2

IMPROVING MARINE TERMINAL EFFICIENCIES

AIS-based terminal management software is helping to optimise marine operations in the petrochemical supply chain by providing continuous visibility to all dock and vessel activities, enabling senior management to cut costs and labour requirements, optimise the supply chain, and drive better business decisions.

3

HANDLING THE FLOOD OF WATERWAY TRAFFIC HITTING THE US GULF COAST

andling the

a e of

ater a traffic hitting the

This is becoming increasingly important as tanker rates soar because of the scarcity of Jones Act vessels available to ship oil and refined products between US ports.

5

COLLABORATING TO IMPROVE DATA ACCURACY AND DECISION-MAKING

This includes sharing actual AIS-based transportation cost information so that, for instance, traders can make significantly better decisions than if they were to rely on often-imprecise anecdotal and perbarrel costs, alone.

6

SIMPLIFYING VESSEL “FIT” MANAGEMENT

AIS-based enterprise terminal management tools are enabling terminals to streamline all key processes associated with dock fit, dock scheduling, and dock activity logging.

AIS-based enterprise software tools with dock and jetty scheduling and optimisation capabilities are enabling the marine transport infrastructure to meet an unprecedented increase in volume demands.

7

4

AIS-based terminal enterprise software suites make it easier to support industry initiatives such as the Oil Companies International Marine Forum (OCIMF) Marine Terminal Management and Self

CONTROLLING DEMURRAGE COSTS THROUGH AIS-BASED VESSEL-TRACKING TOOLS

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STRENGTHENING THE INDUSTRY’S FOCUS ON SAFETY

ulf

oast is ke trend for

Assessment (MTMSA) guide, which major oil companies increasingly use to evaluate terminals.

8

SUPPORTING SUSTAINABILITY INITIATIVES

9

MOVING AIS INTO NEW MARINE TRANSPORTATION APPLICATIONS

AIS data is being used for applications ranging from monitoring participation in voluntary vessel speed reduction (VSR) programs, to ‘virtual tendering’, in which AIS-based tools enable accurate arrival predictions and flexible scheduling for berthing on arrival.

This includes potential examples such as virtual aids to navigation (ATON), in which authorities can use AIS to transmit navigation information where no physical ATON such as a lighthouse, buoy or beacon exists.

10

AVERTING DISASTER

The industry is moving to a proactive, rather than reactive, approach to incident management by taking advantage of AIS data. Detailed descriptions of PortVision’s top 10 anticipated maritime vessel-tracking trends for 2014 can be found here at www.portvision.com

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TECHNOLOGY & AUTOMATION

APPLICATION FLEXIBILITY WITH GUIDED WAVE RADAR

W

ith its new Sitrans LG series, Siemens says it is offering a flexible portfolio of guided wave radar transmitters suitable for virtually any type of industrial application. The modular design of the four basic versions Sitrans LG240, Sitrans LG250, Sitrans LG260 and Sitrans LG270, with numerous configuration options, allows for level measurement in the oil & gas, chemical, pharmaceutical as well as food and beverage industries. The modular radar transmitter covers a broad application spectrum for the measurement of liquids and interfaces, from aggressive materials to hygienic conditions and complies with SIL2 safety standard. Sitrans LG240 was specifically designed for hygienic applications in the pharmaceutical or food and beverage industries and has the required EHEDG, FDA and 3A certificates. The Sitrans LG250 is ideal for the wide range of liquid level measurement such as those in water treatment applications. The Sitrans LG260 version accurately measures levels of solids,

granulates and powders even with extreme dust. In particularly harsh environments with high temperatures up to 450 degrees Celsius (842 °F) or high pressures up to 400 bar (5800 psig), such as those in the chemical or petrochemical industry, the Sitrans LG270 is the best choice. Sitrans LG’s high frequency microwave pulses are transmitted down a rod or cable, offering reliable measurement with up to 2mm (0.08ins) accuracy in applications with corrosive vapours, steam, foam, surface agitation and/or liquids with high viscosity, low level, and varying dielectric or density. Installation is simple with the device’s range of pre-configured options, such as customized enclosure materials, process connections, approvals and communication options. Users will be operational in minutes with four-button programming directly at the instrument or through remote configuration with Siemens Simatic PDM (Process Device Manager) via HART communications protocol. www.siemens.com/sitransLG

“The Sitrans LG250 is ideal for the wide range of liquid level measurement such as those in water treatment applications.”

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Safer. Cleaner. Faster. That’s the value of OPW.

Are Your Loading Systems as

Safe

as Possible?

All operators want to increase the safety of their loading system without sacrificing speed and efficiency. But, how do you know which solution is the best? OPW has worked with companies just like yours to provide a safer, cleaner and faster transfer solution. No matter the type of chemical that is being loaded into transports, railcars, or vessels, OPW can design a system that meets your exact needs. But don’t take our word for it…visit the website below to view a customer application story that shows you exactly how OPW dramatically improved operator safety. With the addition of OPW Loading Arms with the 890 Series “Hi-Load” Counterbalances, this fuel storage terminal is able to handle higher load capacities with virtually no strain on the operators.

Visit us at StocExpo: Stand A18

890 Series “High Load” Counterbalance

See an example of how OPW products provided a “Safer” solution:

www.opw-es.com/SAFER HEADQUARTERS: North America | OPERATIONS: Asia, Europe and South America

STM_Spring2014_p53-144.indd 1161 OPW-ES-Storage Terminals-fp.indd

U.S.: 800-547-9393 | INT’L: +1-513-696-1500

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W. TECHNOLOGY & AUTOMATION

40 YEARS IN CONTROL

S

e

ystems integration specialist HimaSella is celebrating its 40th anniversary. Originally registered as Sella Controls in February 1974, Hima-Sella is today recognised as a leader in the provision of solutions and systems that improve operational efficiency and safety in highly complex and often hazardous environments. Headquartered in Stockport, Hima-Sella has regional offices in Leicestershire and Aberdeen, employs more than 100 full time personnel and has a turnover in excess of £10 million. Sectors within which Hima-Sella operates include oil & gas, nuclear, petrochemical, rail, steel and power generation. John Blackwell, Hima-Sella’s managing director, commented: “We are delighted to be celebrating our 40th anniversary and, having made our mark in several industry sectors, the name Hima-Sella is now synonymous with professionally engineered solutions, best-in-class products and dependable support services. Also, as we enter our fifth decade of operation, we have a very healthy order book and we are in discussions with some of the biggest names in a variety of industry sectors.” High-profile projects and cutting-edge technology remain two of Hima-Sella’s

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distinct hallmarks. For instance, one recent contract win sees the company tasked with the development and provision of a twotier, fail-safe instrument protection system for use in the nuclear industry. Also, Hima-Sella recently received funding from the Technology Strategy Board to develop an innovative low-power and wireless rail track bedding displacement (void) monitoring solution that can be integrated into the current Network Rail maintenance monitoring strategy. The void monitoring solution is being developed in collaboration with Sensonics, as strategic partnerships are of great importance to Hima-Sella. Other key partners include HIMA (safety systems up to SIL 3/4), Funkwerk (customer and passenger information systems, and GSM-R), DeutaWerke (data loggers and train control) and Seitz Valve Technology (safety solenoid valves). Most recently, Hima-Sella and Mitsubishi Electric, the multinational automation solutions supplier, entered into an agreement to promote a number of each other’s products and services and pursue joint opportunities in the rail sector. Also to Hima-Sella’s credit is that during its 40 year history the company has not only responded quickly to customer

A o e: ima ella s oard of directors cele rates the compan s th anni ersar L r: ohn Black ell managing director igel Banner engineering director, process safety), Paul Alliott engineering director rail s stems Edd urnock sales marketing director and an ight e ecuti e chairman

requirements and changes in legislation but, in many cases, has been well ahead of the game. For example, in the 1990s (and long before the Buncefield incident of 2005), Hima-Sella was implementing tank overfill protection, as part of broader and automated emergency shutdown systems. Blackwell concluded: “Our unwavering approach to safety, and the fact that we never forget that our customers seek operational efficiency through the high-availability of plant, equipment and infrastructure, have earned Hima-Sella a fantastic reputation. That reputation has been nurtured through the dedication and loyalty of some of the best engineers and a host of support personnel in the business. So I would like to take this opportunity to congratulate ‘team Hima-Sella’ on this prestigious milestone.” www.hima-sella.co.uk

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AHOY THER E FO R STO CEXPO StocExpo takes place on 18-20 March 2014 at Ahoy Rotterdam and is set to be the biggest event of the year for Europe’s terminal operators, oil companies, traders and regulators

T

HE PAID-FOR three day conference, designed to help operators adapt to the changing market and prepare for the year ahead, will feature over 20 speakers covering everything from emerging transport fuels to finance and from shale to cyber security. Dr Frits Eulderink, executive board member and chief operating officer of Royal Vopak, will explore the emergence of LNG as a transport fuel and provide an update on Thames Oilport storage conversion. Many are also looking for opportunities for finance and growth. Eduard Ruijs, director of First Reserve, will examine how to make a terminal attractive to investors. Ruijs was previously an investment director and partner at NIBC Infrastructure Partners and has experience spanning conventional and renewable power generation as well as energy distribution and storage infrastructure. Cyber security is a growing threat to the terminal sector. Sinclair Koelemij, process IT security professional at Honeywell is an expert in this. He will discuss what needs to be done in order to make an organisation’s employees aware and what methods can be put in place to combat this ever present threat. He has said: “Defence for critical infrastructure needs to be more protected than it was 10 years ago…I have seen companies that are really

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STOC EXPO PREVIEW

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StormALERT™ high performance foam concentrates for successful extinguishment of Class B flammable liquid fires. An innovation in firefighting foam, StormALERT™ high performance foam concentrates are environmentally sustainable fluorosurfactant and fluoropolymer free products. Formulated using new synthetic foam concentrate technology, StormALERT™ high performance foam concentrates offer rapid knockdown and extinguishment, exceptional burn-back resistance, remarkable flow and rapid resealing characteristics and are designed to replace AFFF and FFFP foam concentrates and older fluoroprotein foams. StormALERT™ high performance foam concentrates can be used with fresh, brackish or salt water. Foam discharge devices such as non-aspirating, as well as, aspirating equipment, including standard sprinkler heads, offer optimum performance. Compatible with most dry powder (chemical) agents. Approvals and Listings include UL162 (Standard for Safety for Foam Equipment and Liquid Concentrates), European Standard EN 1568 Part 3 and 4, and International Civil Aviation Organization (ICAO) Level B. ALERT is an international one-stop source for custom-designed firefighting equipment and foam delivery systems, leading high performance firefighting foam concentrates, state-of-the-art emergency management solutions software, world-class training and proven global Emergency Response and Integrated Risk Management services.

Global Service Partner ALERT DISASTER CONTROL T: +65 6545 5088 (24 Hours) E: stormalertsales@alert.com.sg W: storm-alert.com ALERT (Asia) | ALERT (Canada) | ALERT (Middle East) | ALERT (Russia) | ALERT (USA) ALERT maintain an Integrated QHSSE Management System to ISO 9001, ISO 14001 and OHSAS 18001 Standards as Certified by Det Norske Veritas Copyright © 2014, StormALERT™ is a Trademark of Alert Disaster Control

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n

as th

d

STOC EXPO PREVIEW protected, but they are rare.” In December 2012, the members of VOTOB (The Association of Independent Tank Storage Companies) unanimously adopted a new approach called the ‘VOTOB Safety Plan’ which includes the Safety Maturity Tool. Sandra De Bont, director at VOTOB, will talk about ensuring terminal safety and explain how the tool works. “The starting point of this plan is that companies themselves bear the primary responsibility for their security,” she says. “Companies need to measure their safety performance and thus get a detailed picture of where their strengths and weaknesses lie.” Another speaker John Reynolds, managing director at Reynolds Training Services, agrees that health & safety is at the forefront of industry thinking, but believes individuals need to take ownership of the issue too. Reynolds says: “Process safety is firmly locked in the collective conscience of the industry right now and, whilst this is fantastic, we must not lose sight of the need for good personal safety. “After all, improving the safety of individual workers and reducing personal hazards will have a positive impact on the wider process safety culture of that organisation. Like a knife and fork, process and personal safety go hand in hand.” John Reynolds has 30 years’ experience delivering training, vocational competency assessment and consultancy to the petroleum sector. He will discuss process safety and operational principles modules training to meet competency requirements. The rapid emergence of shale gas has sent gas prices plummeting in North America. For European players, trying to see how it could affect their strategy, Mike Henson, manager of infrastructure development at Chevron will discuss the recent shale developments in the US and their ramifications.

MEET & DRINK Networking is a critically important factor in the success of any trade event. StocExpo 2014 will once again bring together thousands of business professionals from different sectors within the industry and the event offers a range of networking opportunities for attendees to meet and do business. TUESDAY 18 MARCH FROM 5.30PM Networking reception sponsored by Vesta Terminals. After the first day of the show, attendees are invited to come and meet with other visitors, delegates and exhibitors at the evening drinks reception sponsored by Vesta Terminals and discuss the day at the exhibition. WEDNESDAY 19 MARCH FROM 5.30PM 10th Birthday party StocExpo turns 10 this year and attendees are invited to come and celebrate. As with every 10th birthday party, there will be music, socialising, dancing and of course lots of fun!

PRODUCT LAUNCHES Running alongside the conference is the annual trade exhibition. With over 190 exhibitors, StocExpo will also feature the latest developments in tank design, construction, maintenance, metering, measuring, pumps and valves all under one roof. These include Elmac which will feature its newly modified end of line flame

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Leading the way forward in Tank and Terminal Management

Keep your business running 24/7 with fault tolerant solutions from MHT Technology

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nt

STOC EXPO PREVIEW

ERGIL ON DISPLAY

E

rgil, a specialist in engineering, construction and manufacturing for oil, gas, water, chemical and petrochemical industries, is also exhibiting at StocExpo 2014. Today, evaporation losses are a great concern for tank owners and communities, the company says. Therefore, both the economic and environmental benefits need to be recognised in order to reduce revenue loss and environmental impact of vapour. The biggest efficiency gains are to be achieved by installing floating roofs and breather valves, which greatly limit product loss and reduce gas emissions. Ergil claims its StorageTech tank equipment and floating roofs provide the most productive solutions for variance reduction and improved operations. At StocExpo, Ergil staff will be available to showcase how the company exceeds expectations in cost and efficiency savings. Visitors will also have an opportunity to learn more about Ergil’s storage tank projects, pressure vessels, process equipment and much more. StorageTech, an Ergil brand, focuses on manufacturing of a wide range of storage tank equipment and provides complete solutions for tank terminals for the oil, gas, power, construction, and chemical industries. Manufactured to international standards, StorageTech has been exported to more than 60 countries worldwide and proved itself as a global brand. The StorageTech product line includes (but is not limited to) breather valves, flame arresters, emergency vents, fire-fighting systems, loading arms, floating suction units, floating oil skimmers, and drain systems, external and internal floating roofs. To learn more about Ergil’s products and services, visit stand F25.

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StocExpo will feature the latest developments in tank design, construction, maintenance, metering, measuring, pumps and valves

arresters. As well as being used in standard applications, the units are used on low pressure storage tanks, allowing the tanks to breath during emptying and filling. Newson Gale will be presenting its innovative truck mounted static ground verification system, the EarthRite MGV. This enhances the protection of personnel and equipment during vacuum tanker and road tanker transfers of flammable or combustible materials, by preventing uncontrolled electrostatic discharges. Chubb Ajax will unveil the FlexSonic Acoustic Gas Leak Detector, which it claims is a step change over traditional gas leak detectors. The FlexSonic is designed to withstand the harshest environments, while the detector analyses 24 discrete ultrasonic bands, ignoring nuisance ultrasonic sources. Saval will use the show to demonstrate the Knowsley Turbinator foam proportioner. This new developed

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ws o l nF

o

ati v no

n

I ere

Wh

The Best Choice

For Terminal Operations?

HXL Series Sliding Vane Pumps for High-Volume Transfer

Better Get Blackmer.

Blackmer® Sliding Vane Pumps have been designed with better reliability, better energy savings and better volumetric efficiency for all of your Mission Critical terminal operations. • Easy maintenance and trouble-free operation

Process | Energy | Military & Marine

• Self-adjusting, sliding vane pumps are energy efficient by design • Excellent self-priming and line-stripping capabilities

Contact your authorized Blackmer distributor today. 124

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World Headquarters

1809 Century Avenue SW, Grand Rapids, MI 49503-1530 USA T 616.241.1611 F 616.241.3752 www.blackmer.com STORAGE TERMINALS MAGAZINE

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STOC EXPO PREVIEW

ONTO GERMANY easyFairs UK Ltd, the organiser of StocExpo, is launching a new event this year also for the European market. Tank Storage Germany will take place in Hamburg, Germany from 19-20 November 2014. Germany has the largest number of tank terminals in Europe, the largest gas storage capacity in Europe, is a world leader in biofuel development and Hamburg itself is home to the second largest container port in Europe. Executive board member for Port of Hamburg Marketing Axel Mattern believes the new show is a much-needed addition to the German exhibition calendar: “Germany’s largest universal port, Port of Hamburg, is delighted to endorse a dedicated tank storage exhibition & conference, connecting both key industry manufacturers and buyers from Germany and across the world” Tank Storage Germany is a two-day conference & exhibition which will be held at Hamburg’s Schuppen 52 venue, in the heart of the industry. It will be the only dedicated tank storage conference & exhibition for Germany’s bulk liquid storage market, bringing the global community together to see the latest innovations and providing a platform for industry peers to discuss the latest hot topics. The event will feature exhibitors spanning tank design, construction and maintenance, through to innovations in metering & measuring, pumps & valves, automation & loading equipment and inspection & certification services. easyFairs is working closely with partners to organise further networking functions for participants, including an exhibitor & VIP networking cruise on the opening morning of the show. Sponsored by Port of Hamburg, this will give industry professionals and exhibitors an opportunity to network in a more relaxed atmosphere, while being taken on a guided tour of the port. Commenting on the show, easyFairs UK & global managing director Matt Benyon commented: “After months of extensive research, speaking with hundreds of influential decision makers and manufacturers, the feedback has been unanimous from the bulk liquid storage market that Germany should be the next destination for our tank storage events. We look forward to welcoming the industry to Hamburg in November.” For more information contact Nick Powell, business development manager nick.powell@easyfairs.com

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product is a ‘plug-and-play’ solution for all foam mixing applications. Foamglas Industry will show how the payback period when insulating a storage tank bottom with Foamglas insulation can be as low as just a few months. First time exhibitor, MPT, which specialises in dosing and mixing equipment will show how its Pulsair equipment is up to 95 percent more energy efficient than mechanical mixers. Action-Sealite will be exhibiting its range of hoses, camlock fittings and camlock couplings designed for safe and effective transport of fluid and air. StocExpo will also be the show debut for TTK’s Hydrocarbon Sense Cables, an embedded microchip in each FG-OD cable means these cables can be used for multiple leak detection and localisation thanks to independent digital addressing. Honeywell Enraf will feature a new product launch which can be found between the Networking Lounge and Stand H5. Visitors and delegates can also catch a glimpse of the new product in action at the Visitor Welcome Area. The Emerson Process Management team on stand M15 will host attendees, this year with a new hat theme! J de Jonge, Stand H17, is celebrating 60 years in the business and to mark the occasion will be giving away free Stroopwafles. Mercon will host the business point just behind its stand (G27), where visitors can use tablets to surf the internet, charge phones, as well as print and fax. Endress + Hauser will be a launching a brand new product. Visitors can find out more about their complete loading rig on stand G9. New to StocExpo in 2014 is Van der Ende on stand M26. Set to showcase their range of products are Emco Wheaton, TODO and Gardener Denver. The companies are gearing up for a busy show which presents an important opportunity for Emco Wheaton and TODO to highlight their capabilities and products including a full-sized bottom loading arm along with a TODO demo unit featuring couplers and adaptors, and the latest editions of pumps. Staff from each of the brands will be on hand to speak with clients. www.stocexpo.com

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ACROSS THE POND

AC ROSS T H E PO N D THE LATEST UPDATES ON REGULATORY & LEGISLATIVE ISSUES AND OTHER INDUSTRY DEVELOPMENTS ACROSS AMERICA

he first uadrennial Energ Re ie is due anuar

FEDERAL PIPELINE AND STORAGE REVIEW

O

N 9 JANUARY, President Barack Obama launched a Quadrennial Energy Review (QER) by the federal government. The purpose of the review is to “foster a comprehensive and integrated energy strategy” through interagency dialogue and the engagement of external stakeholders. The White House claims that this initiative will help the government improve the nation’s economic

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productivity, enhance quality of life, protect the environment, and ensure domestic energy security. A QER Task Force, co-chaired by the Director of the Office of Science and Technology Policy and the Director of Domestic Policy Council and comprised of members from 22 executive departments and agencies, has been established to conduct a policy review of existing legislative and regulatory actions governing

energy resources. Based on its assessment, the task force will issue a report every four years that includes recommendations for policy revisions, priorities for energy-innovation research and development, and new technology demonstration programmes. The first report is due by 31 January 2015, and is expected to focus on energy sector transport and transmission infrastructure, including pipelines and storage.

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ACROSS THE POND

The stricter ozone standard will lead to new requirements for emissions controls on industrial sources

COURT APPROVES 2008 PRIMARY OZONE NAAQS IN A RECENT DECISION, the US Court of Appeals for the DC Circuit affirmed the 2008 primary “public health” standard for ozone of 0.075 parts per million (ppm) as prescribed under the Environmental Protection Agency (EPA) National Ambient Air Quality Standards (NAAQS). The previous standard was set at 0.084 ppm. The stricter ozone standard will lead to new requirements for emissions controls on industrial sources that emit nitrogen oxides (NOx) and volatile organic compounds (VOCs). It also establishes additional regulatory

burdens for industries that attempt to expand or build new facilities in nonattainment areas. Significantly, the court remanded the 2008 secondary standard of 0.075 ppm, which is designed to provide environmental protection against decreased visibility and damage to animals, crops, vegetation and buildings. The court declared that EPA violated the Clean Air Act in failing to present a reasonable justification for lowering the standard. The agency has been ordered to reconsider its basis for setting a secondary standard lower than the

BILLS INTRODUCED AFTER CHEMICAL SPILL Three bills have been introduced in the Senate in response to the 9 January chemical spill at a West Virginia plant. On 28 January, Sen. Joe Manchin (D-WV) introduced the Chemical Safety and Drinking Water Protection Act of 2014. The bill (S 1961) would give EPA and states more authority over certain chemical storage facilities located near public water supplies and distribution systems. It would require state inspections of aboveground chemical storage facilities and mandate that industry develop state-approved emergency response plans. It would also create a comprehensive inventory of each chemical held at the facilities. Facilities regulated under the

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current threshold of 0.084 ppm. EPA is currently developing a proposal for more stringent ozone NAAQS based on input from its Clean Air Scientific Advisory Committee (CASAC). If EPA adopts the latest CASAC recommendations, the new standards could be reduced to as low as 0.060 ppm. A number of industries, along with various states, have expressed concern that if the limit is set below 0.075 ppm, nearly all ozone regions would receive a nonattainment designation and would be subject to new emission reductions requirements.

Clean Water Act would be excluded. On 16 January, Senators Brian Schatz (D-HI) and Jay Rockefeller (D-WV) introduced two other bills to address clean-up funding. The first bill (S 1951) would make responsible parties pay for certain costs relating to the release of pollutants or contaminates. The legislation would amend the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 to specify that companies would be held liable for cleanup costs if the materials released are hazardous substances, pollutants or contaminants. The second measure (S 1958) would raise the Superfund cap on clean-ups associated with spills from $2m to £4m.

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ALERT iResponse™ Emergency Management Solutions Software sets the standard for site risk analysis, pre-incident emergency response planning, training simulations and emergency response management. Intuitive by design, ALERT iResponse™ enables the user to perform hazard assessments and modeling simulations encompassing a broad range of realistic scenarios. ALERT iResponse™ Emergency Management Solutions Software encompasses a comprehensive series of ‘Decision Support Tools’, which complement the software systems modeling and simulations capability, immediately providing the user with critical support information in which to base emergency response decisions. ALERT iResponse™ Emergency Management Solutions Software provides a map view of the asset, its resources and support infrastructure. The software enables the user to understand the site / asset risks, the interaction of potentially complex scenarios, and visualization of an incident and the most effective mitigation procedures. Integrated ‘Decision Support Tools’ provide advanced calculations encompassing critical information such as: Atmospheric Dispersion Thermal Radiation Overpressure Monitor / Nozzle Positioning Bund / Dyke Volumes Foam Requirements Hose Runs

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he

’, t

,

ACROSS THE POND

EXPANDING OSHA, EPA AND DHS RULES

U

NDER EXECUTIVE Order (EO) 13650: Improving Chemical Facility Safety and Security, the Occupational Safety and Health Administration (OSHA) has been assigned to lead a federal working group to identify options for improving and modernising key policies, regulations and standards to enhance the safety and security of chemical facilities. On 3 January, the agency posted a 23-page Solicitation of Public Input on Options for Policy, Regulation and Standards Modernization on its website. This request for public comments is more expansive than OSHA’s Process Safety Management (PSM) Request for Information (ROI) that was published in the Federal Register on 9 December 2013. Specifically, the agency is requesting input on expanding the authorities of several federal agencies, including the Bureau of Alcohol, Tobacco and Firearms, the Department of Homeland Security (DHS), the Environmental Protection Agency (EPA), OSHA, and the Coast Guard, through new regula-

tions or guidance, legislation, voluntary programs, or other means. The solicitation cites numerous existing regulations and expresses a particular interest in expanding the scope of the PSM standard, EPA’s Risk Management Plan (RMP) requirements, and the Chemical Facility Anti-Terrorism Standards (CFATS) under DHS. Among dozens of questions, the public is asked to provide input on: ● Whether DHS should attempt to harmonise CFATS security requirements at facilities exempt from the rule, and if so, how; ● If DHS should explain how CFATS requirements relate to fuel, noting that “some stakeholders have expressed confusion regarding how the current CFATS regulations treat” gasoline; ● Whether EPA should revise the RMP flammability limits to expand coverage to large gasoline storage terminals; and ● If OSHA should expand PSM regulations to atmospheric storage tanks. Comments are due on 31 March.

NO NEED FOR NEW REGULATIONS On 30 December, ILTA submitted comments in response to a notice issued by the US Coast Guard relating to potential measures to reduce the risk of oil spills during marine transfer operations. The notice was published in the Federal Register on 23 October 2013. In the notice, the Coast Guard indicated a particular interest in conditions that pose the highest risk for spills, such as transfers that occur at night or during inclement weather. In the letter, ILTA advised against the consideration of new or revised oil transfer regulations at this time. ILTA also cautioned against basing any new regulations on assumptions that are not supported by data indicating a need for new controls and showing that such controls would lead to the desired improvement. In preparing its response, ILTA reviewed findings from a May 2012 Coast Guard report to Congress on Improvements to Reduce Human Error and Near Miss Incidents. The report did not identify any specific conditions or behaviour as discernable factors in oil spill incidents at marine terminal facilities. Input from ILTA members further affirmed that oil spill risks are being adequately managed for transfer operations at terminals.

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CRUDE DERAILMENTS PROMPT ACTION During the second half of 2013, several high-profile crude oil train derailments resulted in explosions and fire, most notably an incident in Lac-Mégantic, Quebec, Canada, during July, another in Aliceville, Al, during November, and a December 30 incident in Casselton, ND. In all three accidents, the railcars were transporting crude oil from the Bakken shale formation. Numerous investigations and studies were initiated, particularly relating to the characteristics of Bakken crude. In the US, the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Rail Administration (FRA) have launched ‘Operation Classification’. The programme involves unannounced material classification inspections and crude oil testing. Commonly, basic sample analysis provided the inherent chemical properties of the crude. PHMSA and FRA have expanded the scope of testing to measure gas content, corrosiveness, toxicity and flammability. This data is expected to inform shippers and carriers better on proper classification and characterisation of these products for shipment. Separately, on 11 January, Transport Canada issued a proposed rule that would require upgrades in the design, manufacture and selection of railcars used to transport dangerous goods in Canada. The proposed requirements are more stringent and would supersede existing DOT-111 standards applied in the United States. According to the US Department of Transportation (DOT), new regulations forcing higher standards for crude railcars in the US could be proposed in 2015. The American Association of Railroads claims that approximately 85 percent of the railcars used for domestic transport of flammable liquids need to be phased out or upgraded. Conversely, the American Petroleum Institute contends that there has not been “sufficient justification” to propose more stringent requirements.

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LNG Storage Now? Crude Storage Now?

AT&V Now. Every year AT&V customers receive industry leading schedules due to the in-house capacity of American Tank & Vessel. AT&V’s continuing expansions and automation will result in further improvements for our customers and the industry.

From 100,000 BBL to 3 million BBL for LNG to crude, AT&V delivers the schedules you need. Contact AT&V and find out how we can change your project schedule.

American Tank & Vessel, Inc. Visit www.at-v.com for more LNG information.

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Visit us on Facebook to see our recent fast track projects. Š 2014 AT&V

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ACROSS THE POND

ILTA CONFERENCE THEMES

A

rc ash ha ard pre ention is to e discussed during the L A onference hich ill e held as usual in ouston on une Terminal operations, maintenance and engineering personnel are e posed to electrical ha ards on a dail asis tudies indicate that up to percent of all electrical orker in uries are due to e ternal urns created the intense radi ant heat energ of an electrical arc e plosion idel identified as the industry standard for mitigating electric hazards in the orkplace A E as re ised in to address these ha ards uring the L A conference effer ee ith onestoga Ro ers and Associates ill pro ide an o er ie of the A E re uirements for terminal personnel Attendees ill gain an understanding of the primary dangers associated with storage facility equipment, identify methods for determining arc ash oundaries and learn a out options for mitigating these ha ards rior to the conference in con unction ith L A s En i ronmental ealth afet ommittee meeting in April in ackson ille L ee ill lead a half da orkshop on the practical application of the A E standard at terminals he orkshop ill include an in depth discussion on important considerations for incorporating ne A E pro isions into facilit electrical safet programs n une a ne conference track on leadership ill feature t o professional de elopment e perts ho ill highlight the essential characteristics and eha iour of effecti e managers n the first session harlotte tallings ith Baker ommuni cations ill identif ke steps for culti ating leaders he ill pro ide tips for identif ing indi idual leadership ualities and meeting the educational needs of potential managers he second presentation ill e gi en professional management consultant alter us aum e ill e amine the importance of taking initiati e and discuss strategies for impro ing manager performance Attendees ill gain alua le insight on ho to o ercome o stacles set priorities and maintain accounta ilit

A E is idel identified as the industr standard for miti gating electric ha ards in the orkplace to achie e organi ational o ecti es Also at L A e hi itor presentations ill take place on uesda une hese sessions pro ide attendees ith an opportunit to hear directl from endors a out some of the products and ser ices a aila le at the trade sho

ILTA RFS COMMENTS ILTA submitted comments in response to the Environment Protection Agency (EPA) proposed rule to establish the Renewable Fuel Standards (RFS) for 2014. Under the proposal, EPA would set the total renewable fuels target at 15.2 billion gallons for 2014. This would result in a 16 percent reduction of the total volumetric requirement, which, according to EPA, is necessary in order to address

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“significant restrictions” on blending larger volumes of ethanol into the US gasoline pool. In defending its proposal, EPA cited a decline in gasoline consumption since 2007 coupled with limitations on marketing ethanol blends above 10 percent. ILTA’s comments support EPA’s one year reduction of the ethanol volume requirement and the agency’s use of its waiver authority as specified in CAA 211(o)(2)

to reduce statutory ethanol volume requirement. ILTA contended that this action would address the problems inherent in reaching the ethanol blendwall and would mitigate significant economic harm. ILTA’s comment letter is posted under the What’s New section www.ilta.org. Most of the above regulatory information has been kindly made available by ILTA . For further information visit www.ilta.org

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EVEN TS

Due to our increasing partnerships with various international events, we have dedicated a section specifically to conferences and exhibitions for the global bulk liquid storage industry. From small conferences to institutional exhibitions, STM is proud to be a media partner at these events. STM will be available at all the events included in this section. See you there!

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EVENTS

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EVENTS

tankchat.com where storage terminal professionals meet

tankchat.com

where storage terminal professionals meet

T11 Singapore 11 April 2014 Tankbank is all about getting people together, building relationships - opening doors... For more information on sponsorship opportunities or to speak to our team about this important industry event, please contact: Greg Emmenistankchat.com (greg@tankchat.com) + 44 90 78 7700 3195 where storage terminal professionals meet

tankchat.com

where storage terminal professionals meet

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EVENTS

JUNE

2014 2014 KEYNOTE SPEAKER ADAM STELTZNER Lead Landing Engineer of NASA’s Mars Science Laboratory Curiosity Rover Project As chief engineer and development manager for the Mars Science Laboratory focused on the entry, descent and landing phase, Adam Steltzner’s job was to ensure that the NASA Mars Curiosity rover landed safely. His group spent nearly 10 years designing, building, testing, and tweaking the process that would slow the intricately designed, 2,000-pound rover from a speed of nearly 15,000 miles per hour and deliver it safely to the planet’s surface. During his presentation, he will share his enthusiasm for science and planetary exploration and discuss how audacious goals, unbridled thinking and breakthrough innovation can make the impossible possible. Image Courtesy of NASA/JPL-Caltech

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EVENTS

Argus Africa Storage and Logistics 2014 17-19 September 2014 Cape Town, South Africa

Super Early Bird Discount Save over US $300 with the super early bird discount. Register before 30 May to qualify.

argusmedia.com/africa-storage

Demand for oil products and chemicals in Africa is growing faster than in any other region of the world. But frustrations over a lack of storage capacity and the infrastructure gap continue to present the biggest challenge to further growth of the industry on the continent. The Argus Africa Storage and Logistics 2014 conference is the only pan-African event to address this critical issue.

Seat Drop Partner

ST RAGE TERMINALS MAGAZINE Social Media Partner

Advisory Board Members Include: Erik Kleine, Managing Director, South Africa, Vopak

Wale Fatoki, Managing Director, TSL Logistics

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Dipo Salimonu, Chief Executive Officer, Moteriba Terminals and Logistics

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Partners AFRICAN ENERGY OIL • GAS • POWER • POLITICS & FINANCE

Mustapha Fasinro, Chief Executive Officer, Linetrale

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David Leisegang, Managing Director, Island View Storage

James Ngugi, Fuels Marketing and Logistics Manager, Oryx Energies

For more information on the Argus Africa Storage and Logistics conference, please visit our website www.argusmedia.com/africa-storage or contact us by email at africastorage@argusmedia.com or by phone on +44 20 7780 4341.

Petroleum illuminating the markets 138

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Market Reporting Consulting Events STORAGE TERMINALS MAGAZINE

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EVENTS

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SUBSCRIBE N OW To subscribe please contact us on +44 (0)20 8406 8992 or email info@media-36.com w w w. s t o r a g e t e r m i n a l s m a g . c o m STORAGE TERMINALS STM_HouseAd.indd 1

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MAGAZINE

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EVENTS

5 & 6 NOV 2014 - TELUS CONVENTION CENTRE, CALGARY, ALBERTA

2014

Canada’s infrastructure is expanding. Showcase your products, services and innovations to the tank storage industry!

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EVENTS

16th ANNUAL INTERNATIONAL ABOVEGROUND STORAGE TANK CONFERENCE & TRADE SHOW

April 23-25, 2014 | Orlando, Florida

At NISTM 2014, independent and major terminal operators, manufacturers and suppliers will come together to redefine strategic vision and technical requirements for tomorrows’ terminals. Other industries with storage tanks at the show include but are not limited to pipeline, aviation, chemical, electric power generation, manufacturing, and the military. Nationally recognized experts will provide the latest information available on tank management in this three day course. You can get answers to your questions about the most recent issues and technological advancements and much more.

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tankchat.com where storage terminal professionals meet

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UPCOMING EVENTS

UPCOMING EV ENTS STOCEXPO AR A R ER A StocExpo provides a platform for terminal operators, traders, regulators as well as equipment suppliers to come together to network and do business.

● Sharé Mason - Strategic Account Manager Tel: +44 (0)20 8843 8819 Fax: +44 (0)20 8892 1929 sharé@stocexpo.com www.stocexpo.com

NISTM A RL RLA L R A The National Institute for Storage Tank Management’s (NISTM) 16th Annual International Aboveground Storage Tank Conference & Trade Show, held at the Rosen Shingle Creek Hotel for three days. Attendees will have several opportunities to visit the exhibitors and network throughout the day.

● NISTM PO Box 26008 Tampa, FL 33623 www.NISTM.org

Suite 400 Washington, DC 20005 Tel: +1 (202) 842-9200 Fax: +1 (202) 326-8660 info@ilta.org www.ilta.org

ARGUS AFRICA STORAGE & LOGISTICS CONFERENCE E E BER A E A R A The Argus Africa Storage and Logistics conference will bring together regional bodies; national governments; major and independent oil and chemical companies operating in Africa; oil and product brokers and traders; product marketing and distribution companies; independent liquid storage terminal owners and operators; oil and chemical refineries and tank technology firms; construction and maintenance service providers from across the global storage and logistics market.

● Tel: +44 (0) 20 7780 4341 africastorage@argusmedia.com www.argusmedia.com

TSA TANK WORLD EXPO A BA AE Tank World Expo and Congress is supported by H.E. Mr. Suhail Bin Mohammed Al Mazroui, Minister of Energy, UAE, and produced in conjunction with over 40 advisers from industry leaders including Saudi Aramco and Horizon Terminals. Tank World Expo is the must attend event for bulk liquid storage finance, procurement, engineering, operations, HSE and maintenance leaders.

● www.tankstorageforum.com/ tankworldexpo

ILTA 2014 E E A ILTA’s 34th Annual International Operating Conference & Trade Show once again takes place at Hilton Americas-Houston & George R Brown Convention Center.

● For further information contact: 1444 I Street, NW

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E E BER E R The Tank Storage Association (TSA) Conference and Exhibition will be held on 18 September 2014 at the E.ON Lounge Ricoh Arena, Coventry, UK. The conference programme will feature presentations from the COMAH Competent Authority and industry experts on topics which are of key interest to those who operate and maintain bulk liquid storage terminals.

● TSA Black Dog Farm Waverton, Chester, CH3 7PB Tel: +44 (0)1244 335627 Fax: +44(0)1244 332198 hugh.bray@tankstorage.org.uk

TANK STORAGE CANADA E BER AL AR CANADA Once again Tank Storage Canada takes place in the heart of Canada’s energy

province, at TELUS Convention Centre, Calgary, Alberta. Canada is the world’s sixth largest oil producer, and the ninth biggest exporter, thus storage and distribution infrastructure is critical to support the region’s growth and stature in the global market.

● Sharé Mason - Strategic Account Manager Tel: +44 (0)20 8843 8819 Fax: +44 (0)20 8892 1929 sharé@stocexpo.com www.easyfairs.com

TANK STORAGE GERMANY 2014 E BER A B R ER A Taking place in Hamburg, a major player in the international bulk liquid storage industry, Tank Storage Germany will provide an opportunity for leading manufacturers & suppliers to showcase their highly expertise products and services, to a captive audience, who will be there to find the latest must-have solutions for their business. Comprising a two-day conference and exhibition, Tank Storage Germany will welcome visitors from all over the world, including Germany, Europe, USA and Asia.

● Sharé Mason - Strategic Account Manager Tel: +44 (0)20 8843 8819 Fax: +44 (0)20 8892 1929 sharé@stocexpo.com www.easyfairs.com

TANK STORAGE ASIA 2013 E E BER A RE E A RE Tank Storage Asia provides an opportunity for terminal operators, traders, regulators, as well as equipment suppliers, to come together to network and do business in this vital region.

● Sharé Mason - Strategic Account Manager Tel: +44 (0)20 8843 8819 Fax: +44 (0)20 8892 1929 sharé@stocexpo.com www.easyfairs.com

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AD INDEX

ADVERTISERS INDEX Ab Fad AC2 Alert Disaster Allerion American Tank & Vessel, Inc. Argus AR Watson ATEC Steel Baillie Tank Equipment Blackmer Brodie International CarboVac CashCo Chemtec Energy CST Covers Currencies Direct Delta Rubis Denso North America Discus DJA Inspection Dr Stahmer Elaflex Emco Wheaton Emerson Process Fenelon Tanks Flexim FMC Technologies Fort Vale Franklin Valve Geldof GR Pumps Hayward Baker HMT Honeywell Enraf ILTA 2014 Implico Ivens Kanon Loading Equipment

92 126 120, 130 94 132 138 88 62 44 124 FC, 4, 5 46 65 81 78, 79 40 24 64 48, 49 74 128 73 18, 19 106 74 70 28 110 108 52 36 66 86, 87 10, 11 137 58 112 90

L&J Technologies Little Horse Magnatrol Matrix Service MHT Technology Mistras MTS Senor Motherwell Bridge Motherwell Tank Gauging Newson Gale NISTM 2014 Oil Tanking OPW Fluid Transfer Group Oreco Porsche Port of Antwerp Protego Ragworm Rosemount Tank Gauging Royal VOPAK Saval Scully Signal Solventas Terminals STM Competition Storage Terminals Mag Tank Bank 11 Tank Chat Tank Connection Tank Storage CANADA Tank World EXPO TEPSA Tranter TSA 2014 Toptech Systems Tyco Fire Protection Varec Inc Wilks Enterprise, Inc.

34 50 60 98 122 IBC 84 76 108 85 141 OBC 116 42 8, 9 68 46 92 23, 52 2, 3 33 108 16 114 104, 105, 139 136 142 56 140 135 92 96 142 54 100 39 30

Storage Terminals Magazine SUMMER EDITION 2014 Only magazine to have exclusive DOOR-DROP DISTRIBUTION At ILTA (Houston) 2014. On the first day of the trade show, a copy will be dropped at the room door of all delegates, exhibitors and visitors staying at the Hilton Americas allowing them to read the issue in the comfort of their own room, over breakfast or simply take with them to the conference. For more information, to book your position, or to discuss advertising opportunities, please contact Greg Emmenis on ge@media-36.com or +44 (0)7877 003 195

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Merje Volt Terminal Manager, Oiltanking Tallinn

We Can, We Care Oiltanking Tallinn is strategically located on the trade

Terminal Manager Merje Volt makes sure that all of the

routes linking Russia and the FSU countries with the rest

departments in the terminal work in sync with each other,

of the world. This busy terminal operates 24 hours a day,

so Oiltanking Tallinn can work as efďŹ ciently as possible.

365 days a year, and its employees work hard to ensure

Merje is at her happiest when everything runs like clock-

the terminal provides nonstop services to its customers.

work, because she cares about fulďŹ lling the needs of

Ensuring this is possible requires a lot of coordination.

her customers.

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


Storage Terminal Magazine Spring Edition 2014