STM Winter Issue 2011

WINTER 2011 ISSUEBUSINESS INTELLIGENCE FOR THE GLOBAL STORAGE TERMINAL INDUSTRY

TERMINALS MAGAZINE

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WINTER 2011 | STORAGE TERMINALS MAGAZINE » 1

WORLD TERMINAL NEWS

It may not at the core of the storage terminals business, other than the fact that oil product has to be kept somewhere once it reaches the end of a pipeline, but the gathering storm over the Keystone XL pipeline in North America looks like becoming a politi cal farce.

Having dithered on deciding whether or not the 2,735 km oil pipeline from Alberta to Texas can go ahead President Barack Obama has let the issue fall to unpalatable horse-trading in Congress. President Obama has been in a pickle for the past year over what to do about Keystone, caught between two of the Democrati c Party’s key consti tuencies – organised labour and environmental lobbyists.

The project’s developer, Canadian operator TransCanada, says the pipeline could create as many as 20,000 jobs, albeit most as short term constructi on contracts. Opponents (and indeed the State Department) put the fi gure somewhat lower – say 6,000 jobs during constructi on. Nevertheless, for trade unions across the USA the project sti ll represents solid job opportuniti es at a ti me when their members face a desperate search for gainful employment.

But the President risks alienati ng his green backers who superfi cially object to the potenti al hazards the pipeline poses to the landscape (and beneath, eg, some local water tables in Nebraska), but whose real ire is born of their zealous hatred of Canada’s tar-sands from where most of the oil will originate.

In a grubby compromise the President signed a law just before Christmas that temporarily extended a payroll tax cut, but was forced to include a Republican-writt en provision compelling him to make a speedy decision – within 60 days – on whether to allow the pipeline to go ahead. However, with electi on year looming it is sti ll not certain that the administrati on will allow itself to make a concrete decision just yet.

But perhaps the biggest irony is that while the pipeline is good business for TransCanada and the Gulf refi neries, it is not nearly so important as either its defenders or criti cs pretend. America already imports plenty of oil from the tar sands, so the impact on the environment of building it is likely to be marginal. So too the economic boost. Most of the jobs it would create would be temporary ones, in constructi on. Moreover, the states across which the pipeline will run already have some of the lowest unemployment rates in the nati on. And none of them is exactly home ground for Mr Obama making the impact on local politi cs just as marginal.

Neil Madden

EDITOR

Keystone cop-out

A word from the Editor

Front cover supplied by

Displaying their 94020 Conservation Vent and 94160 Pressure Relief Vent.

WINTER 2011 ISSUE

TERMINALS MAGAZINE

2 « WINTER 2011 | STORAGE TERMINALS MAGAZINE

WORLD TERMINAL NEWS

2 « WINTER 2011 | STORAGE TERMINALS

WORLD TERMINAL NEWS

These include:

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CONTENTS5 From process to tankage Oil refi neries in the industrialised west are in crisis as ageing infrastructure and wafer thin margins drive many into the red. On the upside refi nery closures present the tank storage industry with numerous ready-made sites to increase capacity

6 China beefs up its reserves Investment in China’s oil storage and handling sector shows no signs of abati ng, as the second phase of its nati onal strategic oil reserve project gathers steam, supplemented by signifi cant private investment

9 No place to hang out A US Chemical Safety Board report fi nds that oil and gas explorati on and producti on faciliti es present hazards to members of the public, especially children and young adults. The Board has issues recommendati ons to federal and state regulators, and industry associati ons aimed at increasing oil site safety and security

13 Neste boosts Rott erdam’s energy Neste Oil offi cially opened Europe’s largest renewable diesel refi nery in Rott erdam. It also signifi ed a landmark in the Dutch port’s strategy to grow as an energy hub

17 Safety takes the wheel at TSA Coventry once again played host to the UK Tank Storage Associati on’s conference and exhibiti on. The importance of process safety was placed fi rmly in the driving seat

21 World Terminal News 1,000 accident-free days at OMV refi nery and tank farm, Vopak steady in transiti on year, Verwater to build Argos extension, UK energy hub opens, Fujairah government to buy storage stake, Booming demand in East Africa, Kinder Morgan expands at Edmonton, Alinda Capital acquires Houston Fuel Oil Terminal. All the news from the global terminal business

43 Reducing fugiti ve emissions When Sun Chemical expanded one of its faciliti es the company turned to L&J Technologies for assistance in installing vital safety equipment

45 Opti mised unloading of crude oil in cold conditi ons In cold regions crude oil transported in railway cars can be too sti ff to unload. To help solve this problem, Neste Jacobs has developed an unloading device called Ecoarm

47 Selecti ng a measuring principle for custody transfer tanks Over the years there have been many industry discussions as to whether measuring custody transfer tanks should be accomplished with servo or with radar. John Joosten, product manager, Honeywell Enraf, outlines the principal considerati ons for selecti ng an appropriate measurement technology

53 Playing the game Innovati ve concepts in simulati on and opti misati on were presented at the Decision Science Forum 2011 conference

54 Technology & Systems Allerion awarded H&S certi fi cate, Truck mounted stati c ground verifi cati on from Newson Gale, Mixer Technologies’ self-actuati ng rotary unit, Drylok disconnect couplers, CPD’s ten easy steps, Blackmer applies asphalt handling. All the latest news in equipment, technology and systems for the global storage industry

60 Upcoming Events Major conferences and exhibiti ons this year for the global storage business

PublisherKalpesh Patel

[email protected]: +44 (0)20 8406 8992

EditorNeil Madden

[email protected]: +33 (0)3 88 60 30 68

DesignRichard Ponder

Alpa Amin

Online ManagementNemash Patel

Editorial ContributorJo Payne

Adverti singKalpesh Patel

[email protected] T: +44 (0)20 8406 8992M: +44 (0)7944 796 398

Clive Bullard (USA & Canada) [email protected] T: +1 845 231 0846M: +1 845 309 0892

www.StorageTerminalsMag.com

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TERMINALS MAGAZINE

36

P u b l i s h i n g & D e s i g n

CONTENTS


WORLD TERMINAL NEWS

4 « FEBRUARY 2011 | STORAGE TERMINALS

WORLD TERMINAL NEWS

© 2011 FMC Technologies. All rights reserved.

www.fmctechnologies.com

We put you first.And keep you ahead.

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WORLD TERMINAL NEWSEUROPEAN REFINING

We put you first.And keep you ahead.

FMC Technologies delivers logistic measurement

solutions for liquid petroleum and gas applications.

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From process to tankageOil refi neries in the industrialised west are in crisis as a combinati on of ageing infrastructure and wafer thin margins drive many into the red. On the upside refi nery closures present the tank storage industry with numerous ready-made sites to increase capacity

The travails of France’s oil refi neries this year are an exemplar of the malaise in the global refi ning industry in general, and Europe’s in parti cular.

Reports that LyondellBasell group wants to close its refi nery in Berre, Bouches-du-Rhone, came hard on the heels of the closure of Total’s refi nery in Dunkirk and that of Petroplus in Reichstett , near Strasbourg.

In a further twist the Petroplus refi nery at Peti t Couronne has been temporarily shut down as the Swiss parent Petroplus Holdings AG faced the suspension of access to its credit lines under a revolving credit facility pending the outcome of negoti ati ons with the group’s lenders.

Operators on the US Atlanti c coast have mothballed half the region’s refi ning capacity. Since the 2008-09 fi nancial crisis 2.6 million bpd of capacity has disappeared from industrialised economies, according to the Internati onal Energy Agency, and more closures are on the way.

Behind the closures lies a slump in refi nery margins as a combinati on of high crude prices and slow demand in the wake of the economic downturn left many installati ons, parti cularly, in

Europe, running at a loss. According to French business newspaper Les Echos refi ning margins, which represent the diff erence between the price of refi ned products and their producti on costs, fell by 60 percent between 2008 and 2009, and are now at “crisis level”.

In the 1970s, France had 23 oil refi neries; if Berre closes, just 10 will be left . But there is no dark conspiracy at work here; simply another case of the world economic order changing in

ways that many in Europe and North America sti ll don’t understand, let alone accept.

Europe’s refi ning sector does face certain specifi c issues peculiar to the region, including having to invest to comply with new emissions legislati on, with the fi rst mandated reducti ons in CO2 emissions under the European Union Emissions Trading Scheme due to come into eff ect in 2013.

Ironically, global oil demand is set for record levels this year. But the bulk of this consumpti on growth will be in Asia and, to a lesser degree, the Middle East. It is to these regions that refi ners have upped sti cks and moved. Many of these newer refi neries are also more complex than older plants in the west, and thus more easily able to transform cheaper crudes into a range of modern fuels and chemicals.

Europe and North America have simply too much capacity for today’s market demands, and much of it is also old, infl exible and ineffi cient. A side eff ect of this development, says a report by Euro Petroleum Consultants, is that those newer refi neries commissioned in, for example, India and China are bett er geared to exporti ng product. As the cost of freight transport is currently relati vely cheap compared with additi onal costs incurred by European refi ners, so these producers represent serious competi ti on.

On the other handBut there is a plus side to the refi nery closures in terms of providing needed extra storage capacity. Weaker refi neries could appeal both to oil storage companies and traders like Socar, Vitol, Trafi gura or Mercuria, according to industry watchers.

Other oil companies have already started converti ng refi neries they could not sell into terminals or storage units. By doing so they can not only support their logisti cs and oil trading businesses, they also avoid the costly clean-up that permanent closure entails.

Royal Dutch Shell is turning its closed refi nery at Harburg, Germany into a tank storage facility. Petroplus too wants to convert the Reichstett facility into storage. Among other examples, Tamoil’s Cremona (Italy) refi nery is set to become a 900,000 cbm tank farm, while in

Romania OMV and Petrom are converti ng the Arpechim processing plant to a storage terminal some 300km from the nearest coastal access.

Speaking at the Tank Storage Istanbul conference in late November, Mark Lewis, managing director of London-based FACTS Global Energy Group said an esti mated 1 million cbm of coastal product storage capacity is now

available at refi neries that have closed within the past two years. He pointed out that this capacity was already in use for storing product, but will now be focused on importi ng, blending and distributi on.

The on-going European economic crisis has paved the way for a signifi cant decline in oil products in Western European countries, he said, and more refi nery closures are inevitable. One possible benefi ciary of this could be the Eastern Mediterranean where signifi cant private investment in new tankage is already taking place.

The ti ming, locati on and pace of future refi nery closures will have an important impact on European storage requirements, Lewis said. However, Turkey may soon play a crucial role in regional oil and gas supply. A sti ll growing economy, rising demand within Turkey, increased crude supply and growth in product trade in the country are all seen as reasons for a potenti al increase in investment both in refi ning and storage opportuniti es.

Petroplus Reichstett is due to become a storage terminal

Total had to close its Dunkirk refi nery


WORLD TERMINAL NEWSREGIONAL FOCUS

China beefs up its reserves

Investment in China’s oil storage and handling sector shows no signs of abating. The second phase of the country’s national strategic oil reserve project is gathering steam, supplemented by significant investments by private operators and joint ventures

China still lacks a particularly robust system of strategic petroleum reserves. Unlike industrialised countries, which built up their stockpiles three decades ago in the wake of the 1973 oil crisis, China only recently began its strategic reserve programme, starting to fill the tanks in 2006 and completing a 102 million barrel construction phase two years later. The second phase of the programme will build a further 168 million barrels of reserves during 2012.

When China finishes its reserve project, which it is expected to do by 2020, it will hold about 500 million barrels, equal to roughly three months of imports and the second-largest stockpile in the world.

China’s strategic stockpiling “is likely to be a feature of the global oil market not only this year but this decade,” according to Soozhana Choi, head of Asia commodities research at Deutsche Bank in Singapore.

By the end of this year, China will build eight strategic oil reserve bases in Zhanjiang and Huizhou, in Guangdong province, Lanzhou (Gansu province), Jintan (Jiangsu province), Jinzhou (Liaoning province), Dushanzi and Shanshan (Xinjiang Uygur Autonomous Region) and Tianjin Municipality. As such, the country’s reserves should reach some 270 million barrels by the end of the year.

Now, officials have started selecting locations for the third phase of the project. According to reports, potential locations include Wanzhou district of Chongqing, Hainan province and Caofeidian of Heibei province.

All told, analysts at Global Data reckon China’s planned storage capacity will grow at an average annual rate of 25.6 percent between 2009 and 2013. The three phases of the project will require an estimated investment of RMB100 billion (US$14.61 billion) until 2015, says Global Data.

In summer 2011, the Chinese government urged its two oil majors, CNPC and Sinopec Group, to speed up the expansion of commercial storage facilities to secure domestic supply.

CNPC, parent of Asia’s largest oil and gas producer PetroChina, and Sinopec Group, parent of refiner Sinopec Corp, will build some three million tonnes of new oil storage in coastal areas, according to China Reform News. The new storage, mainly for crude oil, will be built near existing commercial facilities in the major cities of Shanghai and Tianjin and coastal provinces of Zhejiang, Fujian and Hebei.

The two oil majors have been the leading builders of oil storage facilities both to service their expanding refining system and establish commercial space under Beijing’s call to boost supply security.

Beijing has also started enlisting the private sector to be part of the national reserve system. According to a CNPC forecast, China’s new refining capacity due online this year will be 24.5 million tonnes a year, or 490,000 bpd. China’s reliance on foreign crude oil, now at about 56 percent, will keep on growing as domestic oil production is unlikely to surpass 200 million tonnes.

At the same time the country is seeking to build a local oil products storage system to supplement the national strategic reserves to ensure better supply security. The Ministry of Commerce (MoC) said building the storage system aims to solve the problem of tight oil products supply, which was the case in late 2010.

But the proposal could also be viewed as part of the China’s efforts to improve its oil distribution system. In a country roughly as big as the United States, industrial development, including storage and pipeline infrastructure, is still heavily concentrated in coastal areas. However, the Chinese government has embarked on a long term project to increase development in the vast hinterland, and this process of industrialisation will need greater and more reliable energy supply.

Statistics show that China’s refining capacity is actually sufficient to meet domestic demand, but an incomplete distribution system often handicaps supply to some areas of the country.

In line with this strategy it was announced in December 2011 that the biggest storage terminal along the Yangtze River is to be built in Nanjing. Phase I of Qingjing Terminal, built by Qingjiang Petrochemical Company is expected to become operational in May, with the total project completed in 2013.

At the end of 2010, Qingjiang Petrochemical

invested RMB1 billion to start the construction of a 650,000 cbm terminal in Nanjing Chemical Park. On completion the terminal will be accessible by road, river and railway. Phase I comprises two 50,000 dwt liquid chemical jetties and Phase II, a 70,000 dwt liquid chemical jetty. The total tank farm occupies 200,000 sqm and 48 tanks will be built with a combined capacity of 650,000 cbm. It is understood that the jetty’s annual throughput will reach 6 million tons.

Kantons on the riseIn December 2011, Sinopec’s logistics division Sinopec Kantons Holdings Ltd signed an agreement to acquire the equity interest in five crude oil terminal operators from its ultimate

China is building its petroleum reserves and improving distribution across the country


WORLD TERMINAL NEWS

parent China Petroleum & Chemical Corporation (Sinopec Corp). The transfer of assets is designed to help Kantons achieve its strategy of becoming the largest crude oil terminal business player in China and one of the largest in Asia. This is the first capital operation directed by Fu Chengyu, chairman and secretary of the ‘party committee’ of Sinopec Group after his transfer from China National Offshore Oil Corporation.

Kantons is paying RMB1.8 billion for the five joint ventures, Ningbo Shihua, Qingdao Shihua, Tianjin Port Shihua, Rizhao Shihua and Tangshan Caofeidian Shihua. The acquisition fund will be raised by way of a proposed rights issue.

The acquisition is being seen not only as embodying Sinopec’s determination to strengthen and expand Hong King-listed Kantons, but also a milestone for the division’s future development. First, the acquisition will rapidly expand the number and capacity of crude oil terminals controlled or jointly owned by the group. As vessel sizes increase, there is a desperate need for sufficient water depth at China’s coastal terminals, currently something of a rarity. By acquiring the five companies, Kantons will increase the number of terminals from two to seven, and the total number of berths from

14 to 24, of which those with capacity to accept VLCC vessels will rise from two to nine, affording the Group a dominant position in deep water shore resources.

Second, the acquisition will consolidate the core business competitive advantages of Kantons. Its terminal business will cover East, North and South China, which are the country’s most prosperous areas with the fastest growth in terms of energy demand. This geographical distribution also coincides with the location of Sinopec’s oil refineries. In addition, with the assistance of existing pipelines Kantons will have

a further privileged position in China’s crude oil terminal sector.

The move increases Kantons’ design capacity from approximately 85 million tonnes to 225 million tonnes, making Kantons the largest primary crude oil terminal platform in China, and progressively in Asia.

The acquisition should be favourable to Kantons’ bottom line. For the nine months ended 30 September 2011, the five JVs recorded total net profit of approximately RMB289 million. Net profit attributable to Kantons will account to RMB157 million on completion of the deal. Moreover, as Ningbo Shihua’s second phase terminal and Rizhao Shihua’s terminal are in trial operation, and with continuously growing demand for crude oil in China, the full operation of the terminals is expected to enhance the profitability of the five terminals.

Commercial prowessElsewhere, the private sector too is steadily adding to the country’s commercial capacity. Guangsha Group has officially started construction of its oil transhipment and storage project in Huangzeshan, Zhoushan. The project construction includes a 300,000 tonne crude oil berth, one 80,000 tonne oil products berth, two 10,000 tonne refined oil berths, 1 million cbm of crude oil storage capacity, and 510,000 cbm of refined oil storage facilities. Expected total investment is about RMB12 billion.

Located in the estuary of the Yangtze, Huangzeshan Island is under the administration of Daishan County, Zhoushan City. It covers 2.53 sq km of land and 15.74 km of coastline.

In the same region, Shanghai Fuel plans to build an additional 150,000 cbm of petrol and diesel tanks at its Bailian Oil Tank Farm. The Bailian facility currently has 200,000 cbm of capacity, including around 50,000 cbm for national reserves.

Not the least significant, Netherlands-based independent tank terminal operator Vopak started building a crude oil storage terminal in Yangpu, Hainan province.

Work on the project started at the end of November and is slated for completion by 2015. In April 2009 Vopak joined forces with the State Investment and Development Corp (SIDC) to develop the project, which required a CNY7 billion (€820 million) investment. SIDC is the terminal’s majority stakeholder with 51 percent, while Vopak holds the remaining 49 percent.

The completion of phase one will see 1.32 cbm installed at Yangpu port, in addition to two oil jetties. When the project is fully completed it will be able to store 5.2 million cbm of crude and refined oil, and chemical products. It is expected to serve all of South China and ASEAN countries as well.

At the start of 2011 Oiltanking Daya Bay successfully commissioned its newly added Phase 2 expansion and received its first vessel at the public jetty. The operator, which is a wholly owned company of Oiltanking GmbH, added a

total of 18 new carbon steel and stainless steel product tanks with a total capacity of 59,600 cbm. With the addition, the total capacity for chemical products grew to 80,150 cbm, supported by two vessel berths.

Oiltanking Daya Bay Co, Ltd is now the exclusive provider of independent tank storage in the Daya Bay Petrochemical Industrial Park and aims to develop the facilities into a large industrial terminal providing services to all tenants in the park and to market participants in South China.

Hong Kong’s Titan Petrochemicals Group reported progress is on track with its onshore storage business in China which has produced “a steady rise in revenue” over the past five years. The earlier than planned completion of the new phases at Fujian and Nansha terminals has brought the combined storage capacity to 2.4 million cbm in the first half of the year. At the same time, an additional 50,000 cbm of capacity in Nansha Terminal has been appointed by Shanghai Futures Exchange as its designated physical delivery storage capacity, bringing the total designated capacity to 300,000 cbm. Nansha Terminal continues to be the largest physical delivery storage facility for the settlement of the Exchange’s fuel oil futures contracts.

The China terminals have shown promising revenues which rose 26 percent to HK$112 million, fuelled by increased storage capacity, long-term contracts and significant growth in storage demand. All these factors and higher revenues led to a 53 percent improvement in the division’s earnings from HK$64 million to HK$97 million for the first six months.

With the Nansha Phase III trial operations commencing early in 2011, the total operating capacity increased to 918,300 cbm, comprising of 590,000 cbm of fuel oil storage, 125,300 cbm of chemical storage and 203,000 cbm of refined oil storage.

Shanghai Yangshan Terminal achieved its best performance in its two-year of operation. Driven by strong demand for oil storage over the first six months of 2011, the 1 million cbm also recorded a strong monthly average utilisation rate of 97 percent, despite the newly-built 600,000 cbm capacity added in July 2010.

REGIONAL FOCUS

Oiltanking is one of the foreign investors in China’s tankage sector

Titan report’s steady progress and good returns


WORLD TERMINAL NEWS

8 « DECEMBER 2010 | STORAGE TERMINALS

OILTANKING PROFILE

safe or just playing it safe?

If you have a question about safety, please visit www.terminalsafety.com.

© 2011 Honeywell International, Inc. All rights reserved.

A holistic approach to safety. Honeywell Enraf offers solutions, products and services to ensure safety, including design, assessments and implementation. We offer unmatched industry knowledge and experience including more than 200 TUV experts worldwide. Our products and experts are certified to meet the highest standards to optimize safety, availability and performance for our customers. Be on the safe side.

HPS Terminal Security Ad A4 04-05-11.qxp:Layout 1 4/5/11 5:54 PM Page 1


WORLD TERMINAL NEWS

No place to hang outA US Chemical Safety Board report finds that oil and gas exploration and production facilities present hazards to members of the public, especially children and young adults. The Board has issued recommendations to federal and state regulators, and industry associations aimed at increasing oil site safety and security

The US Chemical Safety Board (CSB) has released a new study of explosions at oil and gas production sites across the US, identifying 26 incidents since 1983 that killed 44 members of the public and injured 25 others under the age of 25. On publication of the report CSB also called for new public protection measures at sites.

The report examined in detail three explosions that occurred at oil and gas production facilities in Mississippi, Oklahoma, and Texas, that killed and injured members of the public between October 2009 and April 2010.

The report found that children and young adults frequently socialise at oil sites in rural areas, unaware of the explosion hazards from storage tanks that contain flammable hydrocarbons like crude oil and natural

gas condensate. The unintentional introduction of an ignition source (such as a match, lighter, cigarette, or static electricity) near tank hatches or vents can trigger an internal tank explosion, often launching the tank into the air and killing or injuring people nearby.

The report identified regulatory gaps at the federal and state levels and called on the US Environmental Protection Agency (EPA) and state regulatory bodies to improve current safety and security measures at exploration and production sites such as warning signs, full fencing, locked gates, locks on tank hatches, and other physical barriers. It also called on state regulators in Mississippi, Oklahoma, and Texas to require safer, modern tank designs that reduce the likelihood of an internal tank explosion if an ignition source is inadvertently introduced nearby.

OIL SITE SAFETY

safe or just playing it safe?

If you have a question about safety, please visit www.terminalsafety.com.

© 2011 Honeywell International, Inc. All rights reserved.

A holistic approach to safety. Honeywell Enraf offers solutions, products and services to ensure safety, including design, assessments and implementation. We offer unmatched industry knowledge and experience including more than 200 TUV experts worldwide. Our products and experts are certified to meet the highest standards to optimize safety, availability and performance for our customers. Be on the safe side.

HPS Terminal Security Ad A4 04-05-11.qxp:Layout 1 4/5/11 5:54 PM Page 1

On 31 October 2009, an oil tank near town of Carnes, Mississippi, suddenly exploded killing two teenage boys


WORLD TERMINAL NEWS

10 « SPRING 2011 | STORAGE TERMINALS MAGAZINE

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WORLD TERMINAL NEWS

On 31 October 2009, two teenagers, aged 16 and 18, were killed when a storage tank containing natural gas condensate exploded at a rural gas production site in Carnes, Mississippi. Six months later a group of youths were exploring a similar tank site in Weleetka, Oklahoma, when an explosion and fire fatally injured one individual. Two weeks later, a 25 year old man and a 24 year old woman were on top of an oil tank in rural New London, Texas, when the tank exploded, killing the woman and seriously injuring the man. The CSB deployed investigators to all three sites to collect information on the incidents.

Investigators found that the three accidents occurred in isolated, rural wooded areas at production sites that were unfenced, did not have clear or legible warning signs and did not have hatch locks to prevent access to the flammable hydrocarbons inside the tanks.

CSB chairman Rafael Moure-Eraso said: “After reviewing the work of our investigators I believe that these incidents were entirely preventable. Basic security measures and warning signs – as well as more safely designed storage tanks – will essentially prevent kids from being killed in tank explosions at these sites.”

The CSB’s investigation found a few major cities and some states, such as California and Ohio, already require varying levels of security for oil and gas production sites, such as fencing, locked or sealed tank hatches, and warning signs. As a result, California did not appear to have any fatal tank explosions between 1983 and 2011. However, many other large oil and gas producing states have no such requirements. The major oil producing states Texas and Oklahoma require fencing and warning signs for certain sites that have toxic gas hazards but not for all sites with flammable storage tanks.

“Oil and gas storage sites are part of the landscape in many rural American communities; hundreds of thousands of similar sites are located across the country,” said CSB lead investigator Vidisha Parasram. “It was a concern to discover that issues related to public safety are rarely considered prior to placement and design of these sites. In many cases sites can be as close as 150 to 300ft from existing buildings such as residences, schools, and churches, and still lack any meaningful warnings or barriers to prevent public access.”

Among the six formal safety recommendations in the report, the board urged that state regulators require the use of “inherently safe” tank design features such as flame arrestors, pressure-vacuum vents, floating roofs, and vapour recovery systems. The safety measures, which are similar to those already in use in refineries and other downstream storage tanks, reduce the emissions of flammable vapour

from the tanks or otherwise prevent an external flame from igniting vapour inside tanks.

“The goal of this investigative study is to issue recommendations that will effectively address the current gaps that exist at the state and federal level,” said Dr Moure-Eraso. “As I have seen first-hand, these sites can be dangerous to the people who live and work in these communities and should be properly designed and protected.”

The board recommended that the EPA issue a safety bulletin warning of the explosion hazards of storage tanks, describe the importance of increased security measures such as fencing, gates and signs, and recommend the use of inherently safer storage tank design. Similarly, the CSB’s recommendations seek to address the current gaps in regulations and codes in Mississippi, Oklahoma and Texas.

The CSB’s investigation also examined industry codes and standards, such as those from the American Petroleum Institute (API) and the National Fire Protection Association (NFPA). The final report recommends that both organisations adequately address the hazards that these sites present to members of the public through amendments to their existing codes or creation of additional guidance.

As a result of the investigation’s findings the CSB recommended that API warn of the explosion hazards presented by exploration and production sites, including requirements for security measures such as fencing gates and signs, recommendations for inherently safer storage tank design and acknowledgment of the public safety issue presented by these sites. Similarly the CSB recommended that NFPA amend NFPA 30 ‘Storage of Liquids in Tanks – Requirements for all Storage Tanks’ to adequately describe unmanned extraction and production sites and include information in a relevant security standard that offers specifications on fencing and locks.

Dr Moure-Eraso added: “As the demand for domestic energy resources continues to grow and the number of active extraction and production sites continues to rise steadily, it is important to ensure that these sites have the appropriate safeguards to save young people’s lives.”

In April 2011, the CSB released the safety video ‘No Place to Hang Out: The Danger of Oil Well Sites’. The video is aimed at educating young people about the hazards associated with oil storage tanks. In the video the CSB interviewed teenagers and adults who stated that it is a common practice in rural areas for young people to hang out and socialise at oil production sites.The video and the CSB’s final report are available at www.csb.gov

OIL SITE SAFETY

At Carnes, the force of the explosion propelled the upper part of the tank approximately 225ft while the bottom of the tank was thrown about 60ft in the opposite direction. CSB chairman Dr Rafael Moure-Eraso is pictured left

On 14 April 2009, a fiery explosion took the life of a 21 year old member of the public in Weleetka, Oklahoma, at an unattended oil and gas production site that the CSB said was unsecured and likely lacked fire or explosion warning signs


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Neste boosts Rotterdam’s energyNeste Oil officially opened Europe’s largest renewable diesel refinery in Rotterdam. It also signified a landmark in the Dutch port’s strategy to grow as an energy hub

The grand opening was held in Port of Rotterdam together with some 150 guests, including the Dutch Deputy Prime Minister and Minister for Economic Affairs, Agriculture and Innovation Maxime Verhagen, representatives of the Finnish Government, and other political, governmental and business representatives.

The start-up of the Rotterdam refinery took place in September last year. The refinery produces premium-quality NExBTL renewable diesel, which Finland-based Neste says is the cleanest and highest-quality renewable diesel on the market outperforming traditional biodiesels and even the best fossil diesels. The refinery was completed on-schedule and on-budget and marks a major step forward in Neste Oil’s cleaner traffic strategy. The refinery employs approximately 150 people, the majority of whom are Dutch. According to Matti Lievonen, president & CEO of Neste Oil, the project was realised “through hard work and co-operation among nearly 15 partners.”

“We have built this, Europe’s largest renewable diesel refinery, in just two years. As a location, Port of Rotterdam has fulfilled all our expectations. It is centrally located in terms of our product and feedstock flows as well as within close proximity to our key markets and customers in Europe. Also other chemical plants in the area offer numerous opportunities for synergy. The talent pool in Rotterdam is first class, and the government of

the Netherlands as well as Dutch authorities played an important role in supporting our investment in a renewable fuels plant which has been one of the biggest investments in the Netherlands over the recent years,” he said at the opening ceremony.

“This refinery represents a huge investment in our economy and provides a boost to sustainable growth. It will help the Netherlands realise its ambitions as a leader of the bio-based economy and a major biomass hub in Europe,” commented Maxime Verhagen, Dutch Deputy Prime Minister and Minister for Economic Affairs, Agriculture and Innovation. “We are facing tremendous challenges; ranging from climate change, ageing and shortages of raw materials and energy, to feeding nine billion people in 2050. The overriding question is: how can we strengthen our capacity for growth, and at the same time make growth more sustainable?

“To find solutions, we all need to take our share of the responsibility, and join forces. We need partnerships between industries, and between companies, researchers, NGOs and governments. This refinery is a big gain for the Netherlands and for Europe. As Europe’s largest renewable diesel refinery, it represents a huge investment in our economy. It was in fact the second largest foreign investment decision in 2009! But that’s not all! This refinery will also help to generate more sustainable growth.”

The refinery has an annual production capacity of 800,000 tonnes or 1 billion litres of renewable diesel and cost around €670 million to build. The annual volume produced in Rotterdam will be enough for more than half a million cars to run continuously on pure NExBTL. The emission benefits of the refinery’s output will be the equivalent of removing more than a quarter of a million cars from the roads. This means reducing greenhouse gases by a total of over 1.5 million tonnes annually, the company claims. Like Neste Oil’s three other NExBTL plants, the refinery in Rotterdam is ISCC-certified and capable of producing also renewable aviation

Neste’s renewable diesel refinery in Rotterdam has an annual production capacity of 1bn litres

The annual volume produced in Rotterdam will be enough for more than half a million cars to run continuously on pure NExBTL


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fuel in the future.The facility is capable of using Neste’s

wide feedstock base consisting of a variety of vegetable oils, by-products of vegetable oil refining (eg, stearin), as well as waste oils and fats which all meet the stringent sustainability criteria included in the EU Renewable Energy Directive.

The Rotterdam refinery is also capable of using future feedstocks like algae oil. As a corporate partner in a five-year AlgaePARC project launched in June 2011 and co-ordinated by Wageningen University and Research Centre in the Netherlands, Neste is involved in developing technologies and processes for growing microalgae on an industrial scale as a raw material for use in fuel, food, and chemical production.

Neste Oil has also announced that it will build a pilot plant to produce waste-based microbial oil at its Porvoo refinery. It will be the first pilot plant in Europe designed to produce microbial oil for use in manufacturing renewable fuel from waste-based raw materials.

Neste has a similar-sized facility in Singapore that was completed towards the end of 2010. The company also operates two renewable diesel plants at Porvoo (Finland) that came on stream in 2007 and 2009 with a combined capacity of 380,000 tonnes a year. With the start-up of the Rotterdam refinery, the production capacity of Neste’s renewable diesel refineries totals 2 million tonnes annually which strengthens the company’s position as one of the world’s leading renewable diesel producer, and helps meet growing energy needs with low-emission renewable fuel. The main target markets for NExBTL are in Europe and North America.

Hub strategyThe investment by Neste is the latest in a series of projects that is steadily creating one of the world’s largest energy hubs at Port of Rotterdam. The Port Authority is already planning for the next, predominantly bio-based stage.

An area covering 80ha on Maasvlakte 2, the giant new container terminal complex built on reclaimed land, has been earmarked for a

string of new bio-based industrial activities.The site is situated directly on deep water

and located adjacent to the existing industrial cluster where bio-based companies have already set up operations. In this way, says the port authority, new bio-based activities can most easily be linked and integrated into existing activities via pipeline connections.

Late last year, energy exchange APX-Endex and Port of Rotterdam launched the world’s first biomass exchange, a strategic move for the port authority. The exchange will be developed in two phases, starting with non-cleared products where the physical settlement is arranged bilaterally by the counterparties, followed by clearing services for wood pellets contracts, providing further financial security to market participants.

September saw the opening of the Gate (Gas Access To Europe) Terminal for liquefied natural gas by Queen Beatrix of the Netherlands. Gate, with an annual throughput capacity of 12bn cbm, is a joint venture between Dutch state-owned gas company Nederlandse Gasunie and Vopak. The three storage tanks at the terminal have a total storage capacity of 540,000 cbm, served by two jetties and a process area where the LNG is regasified. The terminal’s throughput capacity can be increased to 16bn cbm a year by building a fourth tank.

Then in late October, Port of Rotterdam and Shtandart — 75 percent owned by Russian conglomerate Summa Group and 25 percent by Dutch oil storage company VTTI — signed an agreement to build a major crude and products oil terminal at the hub. Tank Terminal Europoort West. Start-up is scheduled for 2015 on a 55ha site, creating a trading platform for Urals crude oil.

Shipments will be supplied mainly from Primorsk to Rotterdam by ice-class shuttle tankers, and longer term the facility may also accommodate crude oil from other ports in the Baltic.

In the pipelineIn the latest move, the port authorities of Antwerp and Rotterdam are to work together to reinforce the pipeline infrastructure between the two hubs.

Market parties do not readily take the initiative when it comes to pipeline infrastructure between various clusters, not least because of the scale of investments, the duration of a project and the acquisition of a route and necessary permits.

However, Antwerp Municipal Port Authority and Port of Rotterdam Authority can lead an initiative. The two therefore are jointly commissioning a study for the route and a rough cost estimate for the development of a pipeline bundle between Antwerp and Rotterdam. They will also use the results of the study to gauge interest among market parties in their own ports. If there is interest,

and a clear win-win situation is created for both port communities, a targeted plan can be developed.

The rationale for this spirit of co-operation between two ports that usually compete fiercely with each other is that industry in both ports competes on the world market, and therefore benefits from increases in scale and lower unit costs. Integration between companies within an industrial cluster and between different industrial clusters can be improved by means of pipelines.

“Pipeline infrastructure is a safe and sustainable alternative to transport by road, water and rail, it improves accessibility and flexibility, and it ensures that the port and industrial complexes of Antwerp and Rotterdam can continue to develop, the two ports argue. “In addition to the exchange of raw materials, companies within the respective port areas can more easily exchange residual substances and in this way reduce their energy consumption, emissions, subsidiary products, waste products and costs.”

Vapour recovery at Porvoo

To reinforce its green credentials Neste Oil is building a system for recovering emissions released when loading ships at the harbour of its Porvoo refinery. The system, valued at approximately €23 million, will recover the majority of the volatile organic compounds (VOCs) released into the atmosphere when loading gasoline.

The new facility will reduce the refinery’s overall hydrocarbon emissions significantly as gasoline loading at the harbour is the site’s single largest source of VOC emissions. “Thanks to the new system, we will be able to reduce further our environment footprint and also ensure that harbour personnel benefit from a cleaner working environment,” said Niko Ristikankare, Neste Oil’s vice president, shipping and terminals.

The new system will reabsorb VOCs into gasoline during loading with the help of two absorption tanks and related equipment at the harbour, after which the used gasoline will be returned to the refinery for reuse. A similar system is already in place when loading tanker trucks at the Porvoo refinery’s distribution terminal.

Construction work on the VOC recovery system began in October and the facility is due to be commissioned in the latter half of 2013.

Neste will recover emissions released when loading ships at the Porvoo harbour


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Safety takes the wheel at TSACoventry once again played host to the UK Tank Storage Association’s conference and exhibition. This year, with the Buncefield incident still casting a long shadow over the global storage terminals industry, the importance of process safety was placed firmly in the driving seat

The Tank Storage Association (TSA) held its annual meeting in Coventry, UK, in September. Amid the many engaging talks, presented to a packed room, were discussions on conditioning monitoring solutions for storage terminals, innovative solutions to address secondary and tertiary containment issues and the Environment Agency’s (EA) role in COMAH accidents. However, it was the first two discussions that had the most fundamental message to the gathered UK industry delegates, the continuing importance of the safe operations of storage terminals.

The morning session, chaired by World Fuel Service’s Paul Denmead, kicked off with a presentation by Ian Travers of the UK Health and Safety Executive (HSE) titled: “The Competent Authority’s approach to inspection of process safety management systems”.

Travers began by speaking about developments since the 2005 Buncefield disaster, a huge fire set off by a number of explosions at Buncefield Oil Storage Depot in the UK town of Hemel Hempstead. The incident caused significant damage to both commercial and residential properties in the surrounding area and more than 40 people were injured. The HSE led a joint investigation with the EA, and conducted on-site investigations which, it explained, were detailed, thorough and wide-ranging.

Travers said it had been a “long and sometimes difficult journey”, but promised that “we are almost there now”. He also emphasised that safety was still a “very real issue” in the oil storage industry of 2011.

Leadership skillsLeadership was the key ‘take home’ message from Travers to the gathered members of the TSA. He stressed that the HSE had a “very strong commitment to managing safety through strong leadership”, and was surprised that “we have seen a real lack of understanding as to how to handle disaster”. Disaster hits reputation, he said, and “managing risk is unforgiving”. That is why it should not be “consigned to technocrites” and must remain a responsibility of those at the highest level in the company.

We live in an age of corporate social responsibility, he explained. And successful businesses demonstrate that they “take good care”. He also made the delegates aware that good motives, such as corporate branding, commitments made in policy statements and glossy brochures are not enough, it is the delivery on those promises to safety that matter.

Travers emphasised the importance of process safety management for commercials reasons, saying it was “essential for business success”. Adding that leaders in this field must: understand major hazard risks within their companies, ensure process safety management is managed in a systematic way, identify vulnerability and be sceptical, focus on major hazard safety outcomes, and work together, he explained, across industry, to share lessons and good practice.

“If you are unsure what to focus on,” Travers explained, “focus on your weak parts”, adding that these parts should be obvious. As another pointer, when focusing on process safety outcomes, he urged those leading to: focus on process safety outcomes and not draw comfort


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from the complexity of the control measures and systems. Questi on perfecti on, he added. “Never fully believe that risks are being adequately controlled, you should actually know, based on informati on from key process safety indicators”. He urged leaders to identi fy failings and act quickly and decisively, “do not just measure and feel good,” he said.

Travers referred back to the Buncefi eld investi gati on fi ndings, which stated: “Management systems were both defi cient and not properly followed.” He added that the emphasis in the Buncefi eld site, pre-disaster, has been a culture that focused on process operati ng, and that process safety “did not get the att enti on, resources or priority that it required.”

Managing process safetyProcess safety is shorthand for the ways in which major hazard risks are controlled, he said, and stressed that one accident is everybody’s problem. “You cannot have an accident without it aff ecti ng everyone in the sector,” he explained. The root causes of accidents are oft en common across the sector, and we are only ever as good as the weakest in our sector,” he said ensuring that TSA’s members understood the importance of sharing best practi ce.

The importance of managing process safety should not be overlooked, he explained. It should be based on a process safety management (PSM) standard, such as CCPS guidelines. It should include multi ple layers of protecti on, and it should be tailored to the risks, “not one size fi ts all” Travers said, urging the delegates to “put eff ort into this”. There are systems designed to manage conventi onal safety, yet these do not easily transfer to major hazard risks, he said. The HSE “doesn’t tell you how to do this, you have to do it yourselves,” he explained, before adding that PSM must be dynamic and never fi xed.

He then turned his att enti on to the area of competence. He informed delegates that “competence is an att ribute”, and to build this att ribute there must be an increased awareness of PSM, a PSM group and full use of the UKPIA assessment tools. He urged the assembled att endees to download guidance “before we turn up next year”, referring to the HSE audit process.

Leaders need to understand and assess risks, he urged. They need to know: what hazards are present, what are the challenges to plant integrity, how can this give rise to a major accident and assess what the likelihood is, and what are the consequences.

Embrace vulnerability“What you should feel is vulnerable,” said Travers, explaining that you must know exactly how the plant containment might fail, know what the criti cal control measures are and, very importantly, recognise that people are the weakest part of PSM. These control measures must be tailored according to the risk profi le, he explained.

He conceded that there are sti ll signifi cant challenges for the future. Some of these being: ageing plants, maintaining competence and knowledge in the workplace, reducing the number of process safety

incidents, reporti ng performance, maintaining momentum of shared learning and good practi ce and a lessened support from the HSE (by 2014, the HSE has to cut budgets by 35%).

Looking forward, Travers said fi nally, he would like to see the PSM framework fi rmly embedded in major hazard companies, executi ves and senior managers fully aware of PSM and acti vely leading management of process safety risks, and a greater sharing of lessons and good practi ce across all sectors.

Process safety toolsAs a follow on to Travers’ presentati on from a regulatory point of view, Phil Eames of ABB Consulti ng gave an in-depth presentati on of how to use performance indicators to drive improvement in process safety performance as a way to give delegates the correct tools to keep safety top of mind at all ti mes. This may be increasingly useful in the coming months given the HSE cutbacks.

Process safety performance indicators (PSPI) is an area of great global acti vity, said Eames. There are sti ll two accidents that drive PSPI he explained, the aforementi oned Buncefi eld incident and the fi re and explosion that happened at BP’s Texas City Refi nery, which killed 15 workers, also in 2005. Despite these two industry-changing events, there has been a “conti nuous stream” of major events across the world with four already in 2011.

There is a diff erence between personal and process safety, Eames explained. In terms of process safety, the risk may not be immediately obvious, as opposed to personal safety where the risk of injury will be clear.

In the example of the Texas City disaster, the Baker Report, issued in 2007, showed that BP primarily used injury rates to measure process safety performance at its US refi neries before the Texas City accident. The report also showed that the company’s reliance on injury rates signifi cantly hindered its percepti on of process risk and it now monitors, at the corporate level, leading and lagging process safety metrics. The omnipresent shadow of the Buncefi eld incident has demanded further scruti ny on process safety, Eames said. As Travers did, he referenced the fi nding of the COMAH investi gati on, which showed there was no adequate framework to set process safety indicators. In additi on to this, the report highlighted the fact that the measurement of a number of relati vely simple indicators would have alerted management to the underlying problems that led to the incident. Eames added that safety management systems at COMAH sites should specifi cally focus on major hazard risks and ensure that appropriate process safety indicators are used and maintained.

Eames referred to two familiar models to identi fy the indicators of potenti al hazards, the process safety pyramid and the layers of protecti on model, which was referred to by Travers as the HSE “Swiss cheese model”. Both of these models can be used to determine leading and lagging indicators, the former an indicator that is predicti ve and is considered useful to identi fy a weakness that can be corrected before an incident, and the latt er an indicator that can be used in hindsight to identi fy what went wrong.

Eames reiterated that HSE’s expectati ons for COMAH sites are a “top strategic acti vity for 2011 and 2012”. Therefore it is imperati ve to know exactly what these expectati ons are. Firstly, that a programme for PSPIs to demonstrate that process risk is being managed, and that KPIs have been set accordingly to the risk profi le of process. The HSE will expect the involvement of the workforce and analysis of risk, Eames explained, as well as to have both outcome (lagging) and acti vity (leading) indicators. The HSE will expect sites to use fi ndings from KPIs to drive improvement on site and that these KPIs are linked to leadership and used to inform high level decision making.

Eames echoed Travers’ senti ments that sites should always focus on their most vulnerable areas to get this right, and added that preparati on of the framework within which PSPIs can develop is fundamental. This preparati on should allow the targeti ng of indicators towards key process safety risks, he explained. It should also include what things the site fears

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DECEMBER 2010 | STORAGE TERMINALS » 19

TSA CONFERENCE REVIEW

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happening, said Eames, to make sure the vulnerability aspect is well taken care of. The preparati on should also include a checklist of data to review, which should include: an inventory of dangerous substances, MAH scenarios, key risk control systems and safety criti cal equipment, a history or incidents and near-misses, and audit reports and process safety acti ons. It is important to establish areas of key weaknesses, explained Eames.

Where to beginSo, what should an organisati on do to begin with? Eames stressed that there is no blueprint to identi fy parti cular leading and lagging indicators for individual sites. Even though PSPI has been around for a decade, he said, there is nothing to copy from, and it is imperati ve to identi fy your own indicators, as PSPI is most defi nitely here to stay.

Start small, he advised, and think about what is most important to improve. Focus on what is likely to go wrong most quickly and with the greatest consequences, and look for indicators that generate data frequently enough to talk about a rate. Finally, be prepared to change tack if KPIs are not improving performance and expect it to take between three to fi ve years to fully implement eff ecti ve indicators.

TSA delegates quizzed Eames on the importance of leading and lagging indicators in assessing PSPI. One asked Eames the importance of getti ng buy-in from the operators. He advised the audience to make sure you are identi fying indicators that are relevant to an operator’s job, this should make operators understand the importance of identi fying these and of course, of following them. Another delegate pointed out that the defi niti on of leading and lagging indicators is something that is misunderstood and has been a barrier to successful identi fi cati on in the past. Eames concurred and said that this is defi nitely something to “be careful of”.

Eames left the delegates with the words of Judith Hackitt , chair of the HSE, who said: “No successful company could stay in business for long without accurate informati on on its fi nancial performance – so why act diff erently when it comes to process safety?”


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World Terminal NewsAUSTRIA

1,000 accident-free daysOMV’s Schwechat Refinery and the associated Lobau Tank Farm report that no working days were lost due to industrial accidents among employees for a period of more than 1,000 days. This means that around 3.5 million accident-free hours have been attained.

“This trend is going absolutely in the right direction, and is the result of the personal commitment of all employees,” said head of Schwechat Refinery Gerhard Wagner. “It is particularly remarkable when you consider

that two major routine shutdowns took place in the past two years that involved a great deal of non-ordinary work in the plants.”

“Safety initiative 2010+” was introduced as early as 2009 – also in view of the shutdowns – in order to ensure a safe working environment. Employees of both the refinery and partner companies were made more aware of safety aspects through an information programme and focused training courses. “For us, safety is a value in itself,” added Wagner.

Partner companies carry out a great deal of work at Schwechat Refinery, and their safety records are just as important for the refinery. In order to ensure an optimal performance, only those

with a certified safety management system are selected.

The company says the introduction of an electronic work permit system in 2009 has helped experienced OMV employees to establish the appropriate general conditions for non-routine work in the plant that is carried out mainly by partner companies. The system automatically suggests protection measures for certain types of work.

“Hard work and the awareness of each employee that safe working forms the basis of our success are behind these encouraging results and the newly achieved milestone of 1,000 accident-free days,” said Wagner.

With Group sales of €23.32 billion and a workforce of

31,398 employees in 2010, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In exploration and production, OMV is active in two core countries - Romania and Austria - and holds a balanced international portfolio. In refining and marketing, OMV has an annual refining capacity of 22.3 million tonnes and as of the end of September 2011 approximately 4,700 filling stations in 13 countries including Turkey. OMV further strengthened its position in the latter country through a 97 percent stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.

3.5 million accident-free hours


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Vopak steady in transition yearVopak chairman Eelco Hoekstra says the independent tank storage operator remains on track in its ‘transition year. “The healthy demand for tank storage services and our capacity expansions led to an EBITDA excluding exceptional items of €164 million in the third quarter of 2011,” he commented on releasing the group’s third quarter statement. “We are experiencing a robust demand for oil storage services and a healthy demand for the storage of chemicals. We also note the first signs of improvement in the market for the storage and handling of biofuels.”

Last year Vopak commissioned large expansion projects, such as Gate terminal in Rotterdam, which will serve as an import

terminal for LNG, and the first phase of Vopak Terminal Amsterdam Westpoort, a new state-of-the-art hub terminal for gasoline and other clean petroleum products.

For the full year 2011 Vopak expects a group EBITDA of between €600–640 million. “With the current outlook and additional storage capacity under construction we remain well positioned to realise an EBITDA of between €725–800 million in 2013,” he added.

The third quarter results and the expansion of worldwide storage capacity, among others by acquisitions of terminals in Kandla (India) and Altamira (Mexico) led to a net debt/EBITDA ratio of 2.61 per end of September 2011 (2.35 per 30 June 2011), providing financial headroom to complete the storage capacity expansions currently under construction and to support the identification of

new growth opportunities.Operating profit for the third

quarter 2011 of the Chemicals Europe, Middle East & Africa division increased by 8 percent to €24.1 million. Demand for storage and handling of chemical products remained at a healthy level during Q3 2011. Since the end of the second quarter, some positive signs have been noticed with the implementation of the first European certification schemes for biodiesel products, although uncertainties on subsidies and potential new developments in legislation remain, the company says. The occupancy rate for the third quarter 2011 increased to 91 percent (Q3 2010 90 percent).

In the Oil Europe, Middle East & Africa division operating profit was €41.7 million, including a negative currency translation effect of €0.3 million, and in line Q3 2010 (€42.0 million). The overall market conditions

for storage and handling of oil products remain “robust”. Storage capacity increased by 661,000 cbm compared with Q3 2010, while the out-of-service rate decreased. The results were offset by higher pre-operating expenses related to projects and a lower throughput at the terminal in Estonia. Occupancy rates for the third quarter 2011 and 2010 were the same (95 percent).

In line with Vopak’s geographical divisional structure and driven by the growth of storage capacity in the Europe, Middle East and Africa (EMEA) region, the existing Vopak Chemicals EMEA and Vopak Oil EMEA divisions were organised into Vopak Netherlands and Vopak EMEA as of 1 January 2012.

In Asia, operating profit for the third quarter rose by 5 percent to €45 million, particularly through high activity levels in Singapore. The growth in demand for storage and handling in Asia is driven by strong market developments in both oil and chemicals. The occupancy rate increased by 2 percentage points to 92 percent.

In North America operating profit decreased by €2.1 million to €8 million. Excluding the operating profit effects of the sale of the Bahamas Terminal (€2.8 million) and the negative currency translation effect (€0.6 million) the operating profit improved. Operations at the Deer Park facility are still negatively affected by restrictions in rail car handlings as a consequence of a dispute with a neighbouring competitor. The occupancy rate for the third quarter decreased to 93 percent.

In Latin America, the operating profit showed a 6 percent rise to €7 million despite negative currency translation effects of €0.4 million. The improved results were mainly caused by the better performance of Vopak Brazil. The occupancy rate decreased from 90 percent in Q3 2010 to 85 percent in Q3 2011, largely attributable to a higher out-of-service rate.

NETHERLANDS

Vopak has seen robust demand for oil storage


WORLD TERMINAL NEWS

Verwater to build Argos extensionArgos Terminals has appointed specialist tank construction and maintenance firm Verwater to build Tank Pit 18 with a total capacity of 200,000 cbm and all related work. Both parties signed the agreement on

December 22.The first pile for foundation

works will be placed end of January and the project is to be finalised in August 2013. Roland Pechtold, CEO of Argos Terminals BV, commented: “This phase is an expansion of the existing Rotterdam terminal. The scope of work consists primarily of tank construction,

civil, E&I and piping activities as well as the design and construction of a new jetty. The project contributes to our expansion goals.”

As of 1 December 2011, W.A. (Auke) Piek took office as CEO of Verwater. Employing some 950 people worldwide, Verwater sees Auke Piek’s appointment as a major reinforcement of

its board that will allow the company both to optimise synergy between its various business processes and further expand its activities around the globe.

Piek, 39, formerly worked as director buildings at Haskoning Nederland BV. Before this he held the position of director industrial concepts at Haskoning.

In part thanks to Auke Piek’s appointment, the board of Verwater says it is ready to take a major step towards taking the organisation to a higher level and enabling the company to distinguish itself within the global oil terminal market segment.

Verwater will construct the expansion of Argos’s Rott erdam terminal

Auke Piek, new Verwater CEO

BTT into operation

Phase I of the construction of Botlek Tank Terminal has been successfully commissioned.

On 4 December 2011, BTT discharged 4,000 tonnes of biodiesel from a tanker and stored it. The next day, 3,000 tonnes of biodiesel were discharged from a tank barge and stored in the same tank pit.

Construction of the first phase started end April 2010 and involved an investment of about €70 million. Construction was executed by the Polish company Polimex-Mostostal, within budget and on schedule.

BTT has 34 storage tanks, providing a combined capacity of 200,000 cbm, of which 130,000 cbm is earmarked for clean fuels and 70,000 cbm for edible oils and biodiesel. The terminal’s 420m jetty can accommodate two seagoing vessels of up to 115,000 dwt and two barges simultaneously.


WORLD TERMINAL NEWS

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WORLD TERMINAL NEWS

Extension of Rubis Terminal Cargill and Rubis Terminals have signed a lease agreement with the Port of Rotterdam Authority for the expansion of their site by 2.8ha and 4.4ha, respectively. The site, on Welplaatweg, is currently leased by their joint ‘neighbour’ Evonik. This company will have ceased all operations by the end of 2012 and will hand over the (cleaned-up) site in 2013.

In addition to the site expansion, agreement was also reached on deepening Cargill’s sea jetty by 3.5m to 15.20m NAP (New Amsterdam Water Level). This is made possible by moving various mooring facilities ‘outside’. This project will be completed in the final quarter of 2012. For the time being, Rubis is looking into expanding its jetty capacity for both ocean and inland shipping.

The Botlek area, built in the 1950s, is virtually full. It is becoming more cramped on the water too, due to the increased size of ocean-going ships and inland vessels. At the same time, Rotterdam Port Authority wants to facilitate economic growth by creating more handling capacity. It is therefore continually redeveloping and investing through re-allocation of land following business discontinuations, as

with the Evonik site, and establishing BTT tank storage in place of dry bulk silos, etc.

There is also a programme of construction of space-saving quays such as for Odfjell, and the filling in of ports, such as for BTT. In addition, open (option) sites, such as Bertschi and EBS, are being filled, and infrastructure is being modernised, such as laying and rerouting pipelines, roads and railway lines.

Since the takeover of the refinery of margarine manufacturer Brinkers in 1984, Cargill has been operating from the Botlek. The plant refines, fractionates and hardens tropical vegetable oils. Since the start, production capacity has increased sevenfold to over 1 million tonnes. At the expansion location, Cargill plans the gradual expansion of the current refinery (product expansion). The proposed investments will also lead to greater cost efficiency.

Rubis Terminal Rotterdam is part of the French Rubis Terminal, the largest independent tank storage company in France. The terminal in Rotterdam has been operating since 2008 and stores both chemical and oil products. The expansion on the former Evonik site will enable Rubis to double its storage capacity to a total capacity of 350,000 cbm.

Statoil takes spaceOiltanking Terneuzen has signed a long-term storage contract with Norway’s Statoil. The agreement, which will go into effect in 2013, will strengthen Oiltanking’s position in the ARA hub for oil and chemicals and reinforce Statoil’s trading portfolio in northwest Europe.

By signing this contract, the capacity of the terminal will increase from 317,000 cbm to 472,500 cbm. The expansion enhances the construction of 16 product flexible storage tanks with subsequent pumping, pipeline and vapour recovery. Next to these, a new 2/4 combination jetty will be built in co-operation with Zeeland

Seaports, facilitating large seagoing ships with simultaneous barge movements.

Also at Terneuzen VSL SiloLogistics is to increase its capacity at the Valuepark site. Since 2003, the former Vos Logistics (now VSL SiloLogistics) has been taking care of the transportation and storage of polyethylene granules (PE and LDPE) for Dow Benelux.

Dow, together with Zeeland Seaports, is a co-partner in the joint venture Valuepark Terneuzen . “We look forward to the continuation of the co-operation. With the expansion of the storage capacity, VSL SiloLogistics is investing in a long-term relationship with the chemical concern,” said to CEO Pieter de Graeff CEO.

As VSL SiloLogistics is investing in 22,500

sqm of extra warehouse storage and eight silos, Dow will be able to store all polyethylene granules under cover. This is a wish of Dow’s to satisfy quality requirements for these products, particularly in the food and health industries.

Gerard van Harten, chairman of the Dow Benelux board, also underlined the power of the partnership. “Dow believes in long-term partnerships and it is very nice to have a partner that is close by. Moreover, it means that the concept of the Valuepark – production and logistics close together – is a success. Next year, Valuepark Terneuzen will celebrate its tenth anniversary and VSL SiloLogistics helped to make this possible.”


WORLD TERMINAL NEWS

UNITED KINGDOM

SE energy hub opens

DP World’s London Gateway and Shell celebrated the official opening of a state of the art tanker jetty at London Gateway which will deliver a quarter of all aviation fuel to airports in South East England from Stanford-le-Hope, Essex.

The jetty at London Gateway is now receiving its first shipments, offloading as much as 90,000 tonnes of fuel when fully laden.

London Gateway is a huge new container terminal project being developed along the Thames Estuary by the UAE’s DP World group. CEO Mohammed Sharaf said the official opening marked a major milestone in the joint efforts of Shell and DP World to develop London Gateway into an efficient fuel handling facility: “This facility will ensure an uninterrupted supply of energy to the UK. We look forward to working with Shell in the coming years as both our operations continue to progress.”

DP World has worked closely with Shell as the land and infrastructure of the disused brown field site have transitioned into the Dubai group’s ownership for the construction of the deepwater container port and logistics park.

Rachel Crocker, Shell business development manager in the UK commented: “This jetty is important for Shell’s aviation business

in the UK. We import two million tonnes of aviation fuel a year through this facility and the vast majority of it goes to the UK’s south-eastern airports, primarily London Heathrow. This project has created a legacy for the UK that will secure jet supplies for many years to come.”

The jetty terminal – built on time and on budget by DP World – runs continually 365 days a year. State of the art equipment and control systems allow flexibility in handling a range of products in addition to aviation fuel, including diesel and petrol.

Simon Moore, London Gateway CEO added: “We are delighted to welcome the first ships to this new fuel jetty at London Gateway. Work to remove the old jetty pipe work has been completed and land reclamation will soon begin for the final three berths. We look forward to working closely with our neighbour into the future.”

Once complete, it is claimed the new port and park facility will save UK business millions of pounds every year in land transport costs. An estimated 65 million road freight miles every year will be saved as many goods will no longer need to be transported from deepsea ports to inland distribution centres. Instead, goods will be sent straight into the new London Gateway Logistics Park and then directly to shops and homes. The London Gateway port will open for container handling in Q4 2013.


WORLD TERMINAL NEWS

terminal & refinery

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Flow metering solutions for the oil industryMitsui connects to bioethanol hubA signifi cant new contract between Simon Storage and global trading company Mitsui & Co Deutschland will see bioethanol being stored at Simon’s Immingham West Terminal.

Located on England’s East Coast, the terminal gives Mitsui a bioethanol storage and distributi on hub with transport links to growing UK and internati onal markets. Bioethanol will be received and redelivered by sea (via the Immingham West Jett y) and by road, and off ered to off -takers already storing products at the terminal.

Simon’s in-house engineering team is managing a range of new build works and tank modifi cati ons to meet the new contract, including new pipeline receipt and redelivery systems. In additi on, faciliti es are being confi gured by Simon to provide Mitsui with the fl exibility to respond quickly to changing market requirements by providing the ability to segregate diff ering status product and to denature bioethanol in tank as and when required to make UK standard TSDA (Trade Specifi c Denatured Alcohol).

Tank modifi cati ons for the project include new protecti ve tank linings to protect against stress corrosion cracking, the installati on of overfi ll safety systems linked to ROSOVs (remotely operated shut-off valves) in accordance with process safety standards recommended post Buncefi eld, and fi tti ng automati c tank gauges linked into Simon’s terminal automati on and stock control system (TASCS). The tanks are also designed to allow in-tank nitrogen blanketi ng faciliti es to be fi tt ed at a later stage in the contract.

Subsequent connecti on to a metered supply of nitrogen to each tank vapour space will help to protect the tank and stored product against ingress of air and moisture.

In additi on to storing and handling bioethanol received by sea, Simon will provide Mitsui with dedicated faciliti es at the terminal for discharging product into storage from road vehicles, and for onward distributi on of product by road. Monitored by TASCS, product redelivery by road will be via an automated bott om road loading gantry capable of pumping product at up to 80cbm/hr. Interface to the vehicle electrical system via a proprietary SCULLY system is also provided.

Martyn Lyons, managing director of Simon Storage Ltd, says the contract with Mitsui refl ects growing demand for bioethanol storage. “Our two terminals at Immingham are already handling thousands of tonnes of bioethanol every year and this looks set to conti nue rising in line with increased use of biofuels to cut carbon emissions,” he commented. “Simon can off er the specialist experti se and storage fl exibility that trading companies like Mitsui need to stay at the forefront of this fast moving sector.

Simon’s Immingham Terminals also off er such clients a major logisti cal advantage over the UK’s West Coast faciliti es in terms of shorter and more direct routes to and from Conti nental Europe’s major ports, as well as easier access to the developing transit terminals of Eastern Europe. Our internal Group HMRC Compliance Adviser, Steve Shaw, has also proved invaluable in providing Simon Storage with necessary advice on compliance with the complex UK duty and VAT regime legislati on.”

Simon will provide Mitsui with dedicated faciliti es for discharging product into storage from road vehicles


WORLD TERMINAL NEWS

POLAND

Expanding gas marketNew natural gas storage tariff s in Poland, covering half the country’s stock capacity came into eff ect on 1 December 2011.

At the start of November, the incumbent operator PGNiG, which owns the enti re natural gas storage infrastructure in Poland, made plans to increase the amount of storage accessible to third parti es.

For long-term services of one to four years, 905 million cbm of capacity is now up for grabs, through a range of diff erent products at various sites. Polish media reported Andrzej Janiszowski, PGNiG’s head of regulati on, as saying that because the company knows it will lose its dominance in the Polish supply business through the planned market liberalisati on, it was looking to increase revenue in other sectors of its business.

PGNiG now runs a separate storage business to operate its stocks sites for third parti es. A combinati on of interrupti ble capacity, in the form of bundled units, fl exible bundled units or unbundled storage services, is available at the Husow, Wierzchowice, Strachocina, Swarzow and Brzeznica sites. All have disti nct injecti on and withdrawal rates.

Collecti vely, PGNiG’s storage capability in Poland

stands at 1.8 billion cbm, although the company is looking to expand this to 3 cbm by 2015. Along with releasing some of the storage capacity, PGNiG has launched a new procedure for accessing it. Like the tariff , this builds on rules that the incumbent drew up in June.

Third party access to storage in Poland has been notoriously diffi cult in recent years, which has in part hurt third party imports and investment interest in the country. Unti l a recent change in the law, any company importi ng more than 50 million cbm a year had to hold permanently additi onal volumes in Polish tanks for security purposes.

PGNiG’s storage capability in Poland stands at 1.8 billion cbm

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Flow metering solutions for the oil industry

SPAIN

VTTI leases land VTTI has signed an agreement with Spanish energy company Endesa to lease a plot of land in the Bay of Algeciras.

The group intends to build a bulk liquids terminal with a capacity of 550,000 cbm subject to environmental permit and concession extension from the Port of Algeciras.

The realisation of the terminal will offer VTTI’s customers the opportunity to store products on land to serve the local market for ship fuels, as a much more efficient alternative to floating storage in Gibraltar. The terminal would also be used to supply the Spanish market by means of a pipeline that would connect the terminal to the Compania Logistica de Hidrocarburos (CLH) depot, located nearby.


WORLD TERMINAL NEWS


WORLD TERMINAL NEWS

RUSSIA

Jet fuel competition

Gazpromneft Aero has put into operation a refuelling complex at the Ulyanovsk-Vostochny international airport. The first refuelling operation was made for an AN-124 Ruslan aircraft operated by heavyt lift cargo carrier Polet.

The alternative refuelling complex at Ulyanovsk-Vostochny will also work with the city’s second airport, Ulyanovsk-Tsentralny. Gazpromneft Aero has established a subsidiary, Gazpromneft Aero Ulyanovsk, to provide fuel supplies to airlines operating from these airports. The complex will procure aviation fuel from the Omsk Refinery, one of Gazprom Neft’s own plants.

The creation of the refuelling complex involved modernising the tank farm and acquiring modern ATZ-18 airfield fuelling vehicles based on Volvo chassis. Gazpromneft Aero equipment used at the Ulyanovsk airport is fully compliant with Russian and international standards on aviation fuel supplies.

“Starting operations in Ulyanovsk represents the completion of the next stage of Gazpromneft Aero’s long-term development strategy, which

involves the proactive expansion of the company’s refuelling stations in Russia and abroad. By launching the new refuelling complex, the company enhances competition in the domestic aviation fuel market,” said Vladimir Egorov, general director of Gazpromneft Aero.

Gazpromneft Aero is a subsidiary of Gazprom Neft.

The company began refuelling aircraft and selling aviation fuel using the underwing method in 2008. Gazpromneft Aero has been a strategic partner of the International Air Transportation Association (IATA) for aviation fuel supplies since December 2008. The company is a major aviation fuel supplier in Russia and has its own network of refuelling

stations. In 2010, Gazpromneft Aero became the biggest Russian network retailer of underwing jet refuelling.

The company is currently operating in over 40 foreign airports in Europe, South East and Central Asia, as well as the Mediterranean region, and is planning to work in Africa and the Middle East in the future.

In 2010 Gazpromneft Aero became the biggest Russian network retailer of underwing jet refuelling

UNITED ARAB EMIRATES

Fujairah govt to buy storage stake UAE-based oil trader Gulf Petrochem has agreed to sell a 12 percent stake in its planned oil storage terminal to the government of Fujairah.

Gulf Petrochem Group has been building a 412,000 cbm oil storage terminal in Fujairah for US$136.4 million.Under the agreement, Fujairah Petroleum Company (FPC), a subsidiary of the Fujairah government, will also invest in the project, Sanjeev Sisaudia, the group’s

chief executive said, but did not give the government’s exact investment amount.The project is due be completed in September 2012.International oil traders and companies have been looking to secure storage space at Fujairah port, which is strategically located outside the Strait of Hormuz,

where the tensions between Iran and the United States have recently increased.The port, the leading bunkering hub after Singapore and Rotterdam, plans to double its oil storage capacity to 7 million cbm in the next two to three years.Gulf Petrochem said in September that it had already completed nine of the total planned 17 tanks.Sisaudia reiterated that the company’s trading division was set to lease one third of the total tank capacity.Meanwhile, Arab Petroleum Investments Corporation (Apricorp) is to provide a loan of US$61 million to support the construction of the Socar Aurora Fujairah

Terminal (SAFT). This is the first instalment of the $110 million loan, which will be disbursed in two tranches. The 641,000 cbm terminal is a joint venture between Azerbaijan-

based Socar Trading, Swiss based commodity trading house Aurora Progress and the Government of Fujairah.


WORLD TERMINAL NEWS

KENYA

Booming demand in East AfricaState-owned oil marketer Nati onal Oil Corporati on (NOCK) is to boost its reserve capacity as oil demand in the East African region is forecast to triple by 2015.

Kenyan media reported NOCK as saying East Africa oil projecti ons indicate that total demand from nine countries – Kenya, Uganda,

Tanzania, Rwanda, Burundi, Malawi, Zambia, Eastern Democrati c Republic of Congo and Southern Sudan – will rise to 37 million tonnes from 10 million tonnes in 2010.

Nock said it was on track to build a US$100 million off shore jett y which will make it possible for super large vessels to call at port of Mombasa. Kenya currently relies on one petroleum wharf at Kipevu which has oft en resulted in delays in offl oading.

The marketer is seeking to raise fi nance for the project, whose master plan includes a storage terminal of at least 300,000 cbm.

Kenya’s oil demand is the highest in the region at 5.6 million tonnes in 2010 and is expected to increase to 7.7 million tonnes in 2020 and 14.5 million tonnes in 2030.

Tanzania’s demand in 2010 was 2.3 million tonnes and is expected to increase to 3.3 million tonnes in 2015 and 10 million tonnes by 2030.Other opportuniti es for the industry are in the recent oil and gas discoveries in Uganda, Tanzania and Mozambique as well as the emergence of the Republic of Southern Sudan.

“We need big tankers to service the oil

exports from these countries and the growing demand in the region,” said Sumayya Hassan-Athmani, NOCK’s managing director. Speaking on Kenyan TV, she said NOCK esti mates it is currently paying US$100-150 million a year in demurrage costs which adds to the cost of fuel in the country.

Alatec Consulti ng of Spain has been commissioned to study the feasibility of the off shore jett y, one opti on for which is a single buoy mooring that could be launched by the end of 2013.

However, there is also the prospect of

competi ti on as fellow oil company Kenol Kobil announced it was preparing itself for a takeover by a foreign company, although no parti cular acquirer has yet been cited.

Jacob Segman, Kenol Kobil’s managing director said its acquisiti on of an oil terminal in the Democrati c Republic of Congo is a route to its expansion along the east African coast in the hope of becoming a takeover target for an Asian or Middle Eastern fi rm. Last year, Kenol Kobil also started constructi on of a 5,000 cbm terminal in Bujumbura, Burundi, and commissioned a 6,000 cbm facility plus LPG plant in Lusaka, Zambia.

As Kenol Kobil seeks an acquisiti on for a stronger market positi on, NOCK said it would seek a public-private partnership to raise funds for the off shore jett y and additi onal storage to transform Mombasa into a petroleum hub for the growing market.

The developments come at a ti me Southern Sudan is considering an opti on to connect to a pipeline in Kenya as an alternati ve compared to paying the US$32 per barrel fee that Khartoum has demanded for future use of its oil faciliti es by the South.

WORLD TERMINAL NEWS

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Oil demand in East Africa is projected to triple by 2015


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INDONESIA

Pertamina’s Riau Islands terminal State oil and gas fi rm PT Pertamina is to set up a new fuel terminal on Sambu island, Riau Islands, with a total capacity of 300,000 kilolitres in a bid to

strengthen the nati onal fuel stock.

The terminal, worth US$50 million, will consist of storage with a capacity of 300,000 kl and three docks for vessels with a maximum capacity of 100,000 dwt. The terminal would also have offi ces and safety faciliti es, he added.

The constructi on of the faciliti es is expected to be completed in 2013. It will serve several acti viti es,

including receiving fuel material, storing fuels, blending and distributi on.

In additi on to strengthening the nati onal fuel stock, the Sambu terminal was also expected to opti mise the potenti al of Sambu Island as a fuel business hub in Southeast Asia. The terminal can supply fuels to neighbouring countries requiring fuel.

SOUTH KOREA

CAO to invest in S Korea terminal Singapore-listed jet fuel supplier and trader China Aviati on Oil (Singapore) Corporati on (CAO) has agreed to invest US$32 million for a 26 percent equity stake in an oil storage fi rm in Yeosu, South Korea.

The announcement came two days aft er the company said it was investi ng $10 million in an oil storage terminal in Johor, Malaysia for its exclusive use. The Malaysia project was the fi rst investment made by CAO in an enterprise outside China since its restructuring in 2004 and marks a milestone in its eff ort to build its network of assets in jet fuel trading, said CEO Meng Fanqiu.

CAO will be the second largest shareholder in Oilhub Korea Yeosu Co (OKYC), which is building the Northeast Asia Hub Terminal in Yeosu, a storage facility with a capacity of 1.3 million cbm, of which 670,000 cbm will be used for oil products and the rest for crude oil.

Korea Nati onal Oil Corporati on will be the largest shareholder with a stake of 29 percent in OKYC. Other shareholders include SK Energy and GS Caltex Corporati on.

The terminal under constructi on now is only 1.88 days by sea from Tianjin and 1.21 days from Shanghai, respecti vely. It is also able to support trading acti viti es to the US west coast and southeast Asia, CAO said.

“CAO’s investment in OKYC is in line with its oil storage investment strategy and highly (compati ble with) its jet fuel trading business,” Meng said.

Constructi on of the South Korean terminal started in February this year and is expected to be completed by the end of 2012. CAO will be leading tankages there for storage of middle disti llates on a long-term basis.

CAO is the largest physical jet fuel trader in the Asia Pacifi c region and the key supplier of imported jet fuel to the Chinese mainland civil aviati on industry. It was forced to undergo restructuring aft er suff ering a loss of $550 million in 2004 from oil derivati ves trading.

The company has been working hard to enhance corporate governance and risk control in recent years and managed to pay off its debts four years ahead of plan. It is now trying to transform itself from a jet fuel supplier to a trader of jet fuel and other oils, with the aim of establishing itself as the leader in jet fuel trade in Asia Pacifi c region and a major trader of other fuel oils by 2014.


WORLD TERMINAL NEWS

NEW ZEALAND

30m for Z in NZSome 30 million litres of new fuel storage has opened in what is claimed to improve significantly fuel supply across New Zealand’s South Island.

Z Energy has commissioned new storage tanks at Port of Lyttelton, and committed to at least NZ$10 million of additional investment in South Island’s storage infrastructure over the coming two years. Z Energy owns and operates a Shell-branded retail fuel business. ‘Z’ itself is owned by Infratil and the New Zealand Superannuation Fund.

The three 10 million litre tanks were formally opened by the Christchurch earthquake recovery minister, the Honourable Gerry Brownlee and the chair of the Z Board Marko Bogoievski at a ceremony at Port of Lyttelton.

Z chief executive Mike Bennetts said the commissioning of the tanks had been delayed twice by the Christchurch earthquakes and it was pleasing to open the facility formally. “I want to thank the many people who have been involved in developing this important project,

Z chief executive Mike Bennetts said commissioning the tanks was delayed twice by the Christchurch earthquakes

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unfortunately under some diffi cult circumstances,” he said. “These tanks will make an important contributi on to ensuring a reliable fuel supply to Christchurch and surrounding areas and it feels good to be completi ng an investment which will play a role in helping get Christchurch back on its feet,” he said.

The tanks, which hold jet fuel, diesel and petrol, cost $25 million to construct. All of the capacity – enough to boost Canterbury’s stock cover by a week – is now operati onal.

Bennett s said the country’s bulk fuel storage had been rati onalised and reduced over the previous decade and there was now a need for sustained investment in the fuel infrastructure.

He added that the exact locati on for additi onal fuel storage was currently being worked through and further announcements confi rming the size and locati on of new tankage would follow over the coming months.

CANADA

KM expands at EdmontonKinder Morgan Energy Partners is to invest approximately US$210 million to construct seven tanks with a storage capacity of 2.4 million barrels for crude oil and condensate at its Edmonton Terminal in Strathcona County, Alberta.

Kinder Morgan Canada Terminals has entered into long-term contracts with customers to support the project. Kinder Morgan subsidiary Trans Mountain Pipeline previously received Nati onal Energy Board approval to construct merchant and regulated tanks at the Edmonton facility and intends to commence constructi on early in 2012 following receipt of other supporti ng permits.

It is expected that the new tanks will be placed in service in late 2013.

“The new tankage will provide Alberta producers, marketers and refi ners additi onal crude oil and condensate storage opti ons as oilsands producti on increases and crude oil prices remain volati le,” said Bill Henderson, vice president of Kinder Morgan Canada Terminals. “Just as importantly, the project will set the framework for two additi onal phases that would ulti mately allow for up to 6 million barrels of dedicated storage.”

Henderson added that the Edmonton locati on allows for “unparalleled” upstream feeder pipeline connecti vity and access to all downstream market outlets, including direct connecti ons into Trans Mountain Pipeline. Kinder Morgan Canada Terminals has begun seeking commercial support for the second phase of tank expansion.

“The new tanks add a very important component to Trans Mountain Pipeline’s expansion plans and will provide our existi ng and potenti al customers with signifi cant crude staging fl exibility,” said Ian Anderson, president of Kinder Morgan Canada, the operator of both Trans Mountain Pipeline and the Kinder Morgan Canada Terminal located in Edmonton.


WORLD TERMINAL NEWS

UNITED STATES

Alinda Capital acquires Houston Fuel Oil Terminal Alinda Capital Partners have acquired 100 percent ownership of Houston Fuel Oil Terminal Company (HFOTCO) from AL Gulf Coast Terminals, an investment affi liate controlled by ArcLight Capital Partners, LLC. Terms of the transacti on were not released.

HFOTCO is a leading marine terminal for storage of residual fuel oil and crude oil. The company owns and operates a 2.2 million cbm storage terminal, and is the largest provider of residual fuel oil storage in the US Gulf Coast. HFOTCO’s assets are located on a 126ha area at the widest point of the Houston Ship Channel, one of the largest trading centres for residual fuel oil and crude oil in the world. The company stores, blends, and transports residual and crude oil via pipeline, barge, rail, truck and ship for major oil companies, refi ners, carbon black manufacturers, internati onal trading fi rms and bunker suppliers.

Alinda said HFOTCO’s size, strategic locati on, diverse customer base, and transport infrastructure “create the most att racti ve and liquid trading platf orm for residual fuel oil in North America”.

“HFOTCO is the pre-eminent residual fuel oil terminal on the US Gulf Coast,” said Alinda managing partner Chris Beale. “The company provides a vital service to its customers in the region and around the world. We look forward to a long and successful partnership with management, who share our long-term focus and emphasis on quality operati ons and growth.”

ArcLight’s managing partner, Dan Revers, commented: “We are very proud of HFOTCO and the transformati on of the business into a world class facility with state-of-the art infrastructure and services for customers. We are pleased that Alinda recognised the strengths of the business through executi ng this acquisiti on.”

Alinda Capital Partners is the largest manager in the US of pension assets for investment in infrastructure and the fourth largest in the world, with over US$7.4 billion of equity commitments under management. Alinda’s investors are predominantly US and European pension funds for public sector and private sector workers, and include some of the largest insti tuti onal investors in the world.

The group has ownership interests in airports – including London Heathrow – roads, bridges and a tunnel, a rail service, natural gas distributi on uti liti es, natural gas pipelines and storage, water supply and wastewater treatment, renewable energy producti on, telecommunicati ons networks, water tanks and other infrastructure assets providing essenti al services to communiti es.

Plains completes Yorktown takeover Plains All American Pipeline has completed the previously announced acquisiti ons of the Yorktown Terminal and Jal Pipeline from Western Refi ning for a total of approximately US$220 million.

The Yorktown purchase includes a 1 million cbm crude oil, refi ned products and LPG storage and distributi on terminal located on an idled refi nery site in Yorktown, Va. Over the next 18 to 24 months, PAA plans to disassemble and sell surplus equipment located at the acquired site and enhance the connecti vity and performance of the Yorktown terminal. The facility will have access to a number of transport alternati ves, including the Colonial Pipeline, deepwater port access on the York River capable of receiving and loading ships and barges, and

access to rail and truck loading and unloading faciliti es. The Yorktown facility will be capable of terminalling and storing

crude oil, refi ned products, propane, butane, ethanol and other biodiesel fuels. The second transacti on with Western includes an 82 mile, 16ins pipeline segment and associated connecti ons and tankage in New Mexico. The pipeline will provide up to 100,000 bpd of crude oil transport capacity from southeastern New Mexico (an area with increased drilling acti vity) to the Jal, NM, stati on, the originati on of PAA’s Basin Pipeline system.

Meanwhile, Western sti ll has a Mid-Atlanti c wholesale fuel operati on that moves about 35,000 bpd, and that business will be retained, even though the Yorktown terminal is sold.


WORLD TERMINAL NEWS

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WORLD TERMINAL NEWS

KM to build condensate facilityKinder Morgan Energy Partners is to build, own and operate a petroleum condensate processing facility near its Galena Park terminal on the Houston Ship Channel. With an initial throughput of 25,000 bpd and a design that provides for future expansions of up to 100,000 bpd, the US$130 million project will split condensate into its various components such as light and heavy naphthas, kerosene and gas oil. A major oil industry customer is underwriting, through a fee structure, the initial throughput of the facility.

“The location of our new facility, when combined with our recently announced $220 million crude/condensate pipeline, will provide customers with unparalleled connectivity to crude oil and clean products markets including refineries, chemical companies, gasoline blenders, finished product storage, outbound pipelines and marine facilities on the Texas Gulf Coast,” said KMP products pipelines president Tom Bannigan.

The transaction is expected to be immediately accretive to cash

distributable to KMP unit-holders on the project’s completion in January 2014.

The pipeline, which will transport crude/condensate from the Eagle Ford Shale in south Texas to the Houston Ship Channel, will consist of almost 70 miles of new-build construction and 113 miles of converted natural gas pipeline. Construction on the pipeline has already begun Kinder Morgan expects it to be in service in the second quarter of this year.

In addition, Kinder Morgan and Motiva have reportedly reached an agreement whereby Kinder Morgan will purchase Motiva’s 472,000 bbl products terminal in Northern Virginia.

The Springfield terminal, located in Lorton, Va, was put up for sale last winter along with terminals in Brooklyn, New York; and Bridgeport, Connecticut. The Springfield terminal is said to be a good fit for Kinder Morgan since it holds the controlling interest in the Plantation pipeline, a 3,100 mile refined products system that serves the south eastern US.

Omniport set for business startGT Logistics, LLC has begun installation of rail lines at its Port Arthur, Tx OmniPort. The OmniPort is expected to open for business in January 2012, serving as a multimodal terminal for crude oil and other products transported via rail, ship, barge and truck.

The $95 million, 1,100 acre facility neighbours refineries with over 1 million bpd of capacity, multiple chemical and processing plants and is

located less than one mile from over four million barrels of petroleum product storage capacity and pipelines currently serving the region.

“As the developer and operator of the entire scope of infrastructure, GT Logistics will be uniquely positioned to provide customers with increased transport options,” said Steven Birdwell, chairman, GTL. “Customer service will be a key component of our success; instead of product sitting for days at remote locations, we’ll be able to transport to the industry in the region in a matter of hours. It’s unprecedented one-stop logistics.”

The rail terminal, served by Union Pacific, will be able to receive unit train traffic, with 300 acres of rail car storage on site capable, on completion, of storing, switching and transloading over 1,000 rail cars. The rail terminal site

also features a multi-barge receiving dock on Taylor’s Bayou; convenient access to Highway 73 and Interstate 10; and connectivity to the extensive network of pipelines serving the region.

“Union Pacific and OmniPort will bring new, innovative transport solutions for energy companies located along the Gulf Coast and we look forward to providing reliable, efficient rail service to meet their needs,” said Sam Calabro, AVP Chemicals Union Pacific Railroad.

GTL also owns and operates a 20 acre deepwater dock and receiving facility on the Sabine Neches Navigation District Channel with over 900 ft of steel bulkhead improvements and 1,700 ft of waterfront access to the 42 ft deep channel. The deepwater dock is 2.2 miles from the new industrial rail park and terminal and is connected by a key Union Pacific rail line and highway. Pipeline connectivity between the sites is being designed. Together, the two sites will be known as the GT Omniport and will be the first multi-user facility of its kind in the Golden Triangle region.

Timothy DeSpain, GTL principal and president commented: “This is one of the nation’s largest projects of its kind in size and scope. The potential for exports of oil and refined products produced in the USA and the changing shipping landscape associated with the expansion of the Panama Canal make the GT OmniPort an attractive transportation hub in the international markets. We are eager to see the positive economic impact our operations will have on the economy.”

Construction of the initial phase of the rail, drainage and road improvements began earlier in the year and will be completed by the end of 2011. Once complete the industrial rail park and related tenant improvements are expected to create 1,000 jobs and $100 million in new capital investment over the next 10 years.

Holly tankage saleHollyFrontier Corporation has completed the sale to Holly Energy Partners of pipeline, tankage, loading rack and crude receiving assets at HollyFrontier’s El Dorado, Kansas and Cheyenne, Wyoming refineries for US$340 million.

In connection with the acquisition, HollyFrontier and Holly Energy have entered into 15 year throughput agreements containing minimum annual revenue commitments from HollyFrontier. Holly Energy expects this acquisition will result in an estimated $47 million of

incremental annual revenue and will be accretive to distributable cash flow.

Through a subsidiary HollyFrontier currently owns 44 percent of Holly Energy. Holly Energy owns and operates petroleum product and crude pipelines, tankage, terminals and

loading facilities in Texas, New Mexico, Arizona, Oklahoma, Washington, Idaho and Utah. In addition, Holly Energy owns a 25 percent interest in SLC Pipeline LLC, a transporter of crude oil in the Salt Lake City area.


WORLD TERMINAL NEWS

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TECHNOLOGY AND AUTOMATIONBLANKETING & VENTING

Now more than ever state, local, and federal agencies are requiring facilities to control the amount of volatile organic chemicals (VOCs) and hazardous chemicals released into the environment. Today it’s vital that facilities equip themselves to help reduce fugitive emissions along with reactive, toxic, or flammable liquids and gases in processes involving highly hazardous chemicals.

Sun Chemical is the world’s largest producer of printing inks and pigments and a leading provider of materials to packaging, publications, coatings, plastics, cosmetics, and other industrial applications. During a period of plant consolidation, Sun Chemical expanded its Kankakee facility, located south of Chicago, Illinois, to enable the plant to manufacture inks for the packaging industry. The facility has 31 storage tanks that handle various solvents and nitrocellulose based resin solutions.

In order to stay in compliance with EPA regulations and the OSHA PSM programme, the Kankakee facility installed a number of Shand & Jurs products on their tanks. The plant is currently outfitted with Shand & Jurs’ 94270 Tank Blanketing Valve, the 94020 Conservation Vent, the 94307 Flame Arrester, the 94160 Pressure Relief Vent and the 94115 Side Mounted Vacuum Vent.

The Kankakee facility is currently set up with 17 indoor process vessels. These process vessels aid with large batch manufacturing systems. Each process vessel has a purple nitrogen line that attaches to Shand & Jurs’ 94270 Tank Blanketing Valve to inert a blanket of nitrogen over the product in the tank.

“With flammable materials the ability to use the [Shand & Jurs 94270] Nitrogen Tank Blanketing Valves allows a level of security to eliminate the oxygen from the environment which allows us to ensure safe operations,” Sun Chemical process engineer Rick Brown said.

The choice to introduce inert gas such as N2 into liquid process and storage tanks is a growing trend that allows for the prevention of product contamination and keeps the tank vapour space inert for safety considerations. Introducing inert gases, such as N2, is sometimes referred to as ‘blanketing’ or ‘padding’ the vapour space. Since the inert gas is supplied from a high pressure source and is being introduced typically into a low pressure tank, the selection of a Shand & Jurs 94270 Blanketing Valve accepts the high pressure gas and reduces the pressure to as low as 0.5” WC for introduction into the tank, thereby eliminating the need for multiple pressure reducing regulators.

“Shand & Jurs’ 94270 Tank Blanketing Valve is essential in preventing emissions into the atmosphere and moisture from contaminating flammable product within a tank,” Shand & Jurs product manager Michael Landato says. “The 94270 maintains the equilibrium inside of the tanks by replacing oxygen in the tank with a high pressure inert gas, nitrogen in this case, to maintain a ‘blanket’ of constant low pressure gas above the packaging inks inside of the process vessels.”

The 94270 Tank Blanketing Valve is capable of sensing the pressure of the tank blanket and will open up to allow more gas when pressure drops below set point and close up once pressure reaches the desired set point. Reduced risk of product evaporation, emissions, combustion potential, corrosion, contamination and oxidation all make the 94270 important for conserving product, avoiding hazards and increasing plant safety.

“Eliminating oxygen from process vessels is key to maintaining a safe operating environment. Ensuring that the pressure venting equipment [Shand & Jurs’ 94020 Conservation Vent and 94160 Pressure Relief Vent] works properly is key to safeguard against pressure build-up inside our equipment as well,” Rick said.

At the plant, large coated piping is connected to each of the process vessels and is channelled through the roof of the facility. Attached to the end of the piping is Shand & Jurs’ 94020 Conservation Vent and 94160 Pressure Relief Vent. Due to the process vessels being indoors, installing both the Conservation and Pressure Relief Vents directly on to the vessels could be a major safety and environmental hazard for the facility.

“The reason for having these vents installed to the piping on the roof is to avoid safety and environmental hazards. By allowing the equipment to vent to atmosphere allows Sun Chemical to maintain a safe working environment for workers and operations,” said eastern regional sales manager John Hutter.

The 94020 Conservation Vent accommodates the pressure relief required during filling operation and thermal expansion. It also provides vacuum relief to protect the tank during product transfer from the tank and unpredicted gas blanketing disruptions.

The installation of pressure relief vents next to the conservation vents provides supplemental storage tank venting due to pressure surges. The 94160 Pressure Relief Vent’s set point should be above that of the Conservation Vent to act as a reliable back up due to fire case conditions or in the case of an emergency. Often required by local regulations, using an additional relief vent can provide peace of mind about tank safety.

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TECHNOLOGY AND AUTOMATION

Traditi onally, oil transported by train is unloaded through valves underneath the tank. The tool used for this is a base unloading arm with a built-in heati ng system. “But if bott om unloading is not possible, which quite oft en is the case in the Balti c region, the car must be unloaded from the manhole on top of the tank,” says Staff an Lindberg, account manager at Finland-based Neste Jacobs. “However, it is very ti me consuming and ineffi cient in the winter to warm the tank from the outside with, for example, hot steam.”

Neste Jacobs has for over 50 years been a soluti on provider of high-quality technology, engineering and project services for a wide range of industries in the oil and gas, petrochemical, chemical, and biotechnology fi elds in Europe, North and South America, Asia and the Middle East. The company is 60 percent owned by Neste Oil and the rest by Jacobs Engineering.

The good thing about Ecoarm, the company claims, is that the system heats the oil via the top manhole and from the inside out. Roughly speaking, the system consists of a pump nozzle equipped with a heati ng coil that has two extendable hot oil spray nozzles on both sides of it.

“First, the pump nozzle is heated and pressed into the sti ff oil,” says Lindberg. “When it begins to thin out around the nozzle, the oil is pumped to a heat exchanger on the outside, from which hot oil is sent back into the spray nozzles.”

As the oil thins, beginning from the midsecti on of the tank, the nozzles begin to move sideways and upwards and gradually rise to the top of the tank. This way, all the oil will be effi ciently warmed up and can be unloaded.

Fast and safe The key benefi t of Ecoarm is that unloading can be done with high volume fl ows in cold weather. The equipment is hydraulically operated and steered remotely, which makes it safe to operate.

“Ecoarm is the market’s most effi cient and versati le unloading system for oil products that are diffi cult to handle,” says Lindberg. “The remote operati on of the unit, combined with controlled collecti on of harmful gases, makes for a safe working environment for operators. The system also operates well below fl ashpoint and possible volati le organic compounds can easily be collected.”

Lindberg explains that Ecoarm is oft en sold together with traditi onal base unloading systems. “But if the bott om valve is broken, our Ecoarm is an effi cient soluti on for warming up the oil and making it possible to unload in cold weather.”

Eco top-warming arm Due to an EU directi ve that requires special valve arrays on the bott om of train cars transporti ng oil, old cars with traditi onal valves cannot be

COLD UNLOADING

Optimized unloadingof crude oil in cold conditions A well-known phenomenon at oil terminals in cold regions is that crude oil transported in railway cars can be too sti ff to unload. To help solve this problem, Neste Jacobs has developed an unloading device called Ecoarm. It is a ready to use system that can be used as is or confi gured by combining top-unloading, bott om - unloading or top-warming technologies to meet clients’ needs.

The Ecoarm unloads crude oil from railway cars no matt er how cold and sti ff the oil is. The arm that warms up the oil inside the tank consists of a pump nozzle equipped with a heati ng coil that has two extendable hot oil spray nozzles on both sides of it that warm up the oil from the inside. Pic © Polarteknik Oy Ab

Ecoarm at work unloading a Russian railway car in cold weather. © Polarteknik Oy Ab



used in EU countries. “The problem is that the traditional base unloading equipment with built-in warmers doesn’t fit if the tank has EU-adapted bottom valves,” says Lindberg.

To address this problem, Neste Jacobs has recently developed a light version of Ecoarm. According to Lind- berg, the systems are identical with one exception: the ECO top-warming arm does not have a pump. “The unloading itself is meant to be done by gravity through the valves at the bottom of the tank.”

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TECHNOLOGY AND AUTOMATIONCOLD UNLOADING

Ecoarm is a complete system consisting of hot oil spray nozzles, heat exchangers, pumps, initial heating valve box, controls and hydraulics. © Polarteknik Oy Ab



signal, of which the frequency continuously changes in the form of a sweep. The emitted FMCW radar signal, after being reflected by the liquid in the tank, is then received and compared. The returning signal, delayed over the distance, exhibits a frequency shift which is directly related to the measured distance. This distance, double the distance to the product surface, can then be used to establish the product level (innage). This delay allows the precise establishment of the distance between radar antenna and liquid stored in the tank (ullage). With Honeywell Enraf’s FlexLine, for example, an accuracy of 0.4 mm (0.016ins) can also be achieved.

How to select the best solution There are various aspects that can influence the selection of the most suitable measuring principle of a custody transfer application. Aspects that should be considered include metrological aspects and product characteristics, functional requirements, installation and costs.

Metrological aspects and product characteristicsSince accurate measurement is essential in many fields, and since all measurements are influenced by external factors which cause measurement uncertainties, a great

deal of effort must be taken to make the assessment as accurate as possible. This is also applicable for

the measurement of the content of a tank and therefore the following influences should be considered:

Vapour EffectVapour effect is the influence of the product vapours

on the propagation speed of a radar signal, compared with the reference (atmospherically) conditions. This effect is

caused by specific physical properties of the vapour which interact with the microwave energy emitted by the radar. There are three main effects; (1) the dielectric constant, (2)

the magnetic permeability and (3) the dipole moment.When using radar technology for level measurement in closed

bulk storage tanks containing light hydrocarbons there are several issues to keep in mind from an accuracy point of view:• The low dielectric constant difference between the vapour above the liquid and the liquid itself.• Basically the composition of the vapour is not only dependent on the liquid contained in the tank, but also air and possibly by other products previously stored in the tank.• The vapour affects the radar propagation speed and how much energy is reflected by the liquid product.• How much the effect is, is not only dependent on the physical properties of the vapour, but also the amount of vapour.• The amount of vapour is related to the vapour pressure and also the saturation of the vapour, ie, how well it is dispersed and distributed in

Several technologies are available for determining the liquid level inside bulk storage tanks. For accurate custody transfer and approved product level measurement, on-shore storage tanks use mainly servo or radar technology.

Working principles of servoThe principle of servo measurement is based on Archimedes law: ‘any object, wholly or partially immersed in a fluid, is buoyed up by a force equal to the weight of the fluid displaced by the object’.

Typical servo gauges consist of three compartments – drum, drive and power supply. The drum compartment contains a precise machined drum on which the measuring wire is wound. The displacer is suspended by this wire into the tank. The drive compartment contains the drive train (servo motor and electronics) and the measurement electronics. A magnet coupling is used to convey torque between the drive train and the drum, and forms the isolation between the process and the electronics and environment. The displacer is moved by a stepper motor in the drive compartment.

As soon as the displacer reaches the surface of the liquid in a tank, buoyancy reduces the apparent weight of the displacer. This is measured by the servo electronics using the force transducer. By also keeping track of the exact position of drum and

number of revolutions, the length of the

expanded wire can be measured. In combination with the known

position of the gauge (gauge reference height

- GRH), the exact product level can be calculated. This level is then corrected for several typical tank

uncertainties, like product temperature, tank shell effects, changes in GRH due to hydrostatic tank bulging, etc. With Honeywell Enraf’s 854 servo solution, for example, it is possible to measure with an accuracy of

0.4 mm (0.016ins), which exceeds the accuracy of even calibrated tapes used for manual dipping.

Working principles of radarThe main radar technology used for custody transfer is the Frequency Modulated Continuous Wave (FMCW) principle, a solution that doesn’t use a repetition of pulse like pulse radars or measures the direct time of flight, which is less accurate, but instead sends out a continuous radar

Over the years there have been many industry discussions as to whether measuring custody transfer tanks should be accomplished with servo or with radar. John Joosten, product manager, Honeywell Enraf, outlines the principal considerations for selecting an appropriate measurement technology

TECHNOLOGY AND AUTOMATIONCUSTODY TANK MEASUREMENT

Selecting a measuring principle

for custody transfer tanks



48 « SPRING 2011 | STORAGE TERMINALS MAGAZINE

SIMULATION TECHNOLOGY


TECHNOLOGY AND AUTOMATIONCUSTODY TANK MEASUREMENT

the empty space or void above the liquid.• This vapour saturation is not simply a P*V/T equation – it is much more complex, as the tank and tank contents are not all at one single temperature, but there are also dynamic influences, caused by ambient effects such as sunshine or rain and loading or unloading.

Every radar system is calibrated in air and the composition of the vapour is not very stable, let alone known. As a result the vapour influence can never be completely compensated for. The main uncertainty is the variable saturation of the vapour constitution above the liquid. A certain level of compensation for this effect can be achieved using vapour pressure and temperature measurement.

Weights and Measures (W&M) institutes recognise the effect the vapour has on the accuracy of the gauge. Therefore they have made a distinction in the range of products to be measured. Most W&M authorities in Western Europe (such as NMi and PTB) do not allow radar technology in pressurised applications, as the effects easily exceed the maximum permissible error (mpe) and the models and compensations are insufficiently proven. The NMi W&M approvals contain a list of approved product groups (all hydrocarbons with at least eight carbon atoms per molecule, sulphur, gasoline, etc).

If vapour effect on radar accuracy exceeds W&M limitations, the measurement principle should be servo. If the vapour effect complies with W&M regulations, radar or servo measurement principles can be used. If high accuracy measurements are needed, a servo solution is recommended.

Measuring so-called light products with low dielectrical constants like LPG or LNG is also more complicated, as the signal strength reflected back from the product level is low. To ensure a reliable level reading the radar

signal has to be bundled and the use of a stilling well is practical solution. Here another aspect arises, as the diameter of the stilling well determines the radar propagation speed. Hence the inner diameter of said stilling well should be constant over the entire measuring range.

Requirements for mechanical installationDepending on the method of installation (roof mounted or using a stilling well) specific requirements are applicable for custody transfer measurement with radar or servo. Some examples and pitfalls include:

Measurement on stilling well using radar Radar measurement requires a constant diameter of the stilling well. This can be an issue when the stilling well has a reducer. The variations in stilling well diameter, misalignment and also tilting of the stilling well segments will influence the accuracy of radar measurement. The stilling wells may have a single or even a double row of holes, and sometimes they are elongated (so-called slots). If the slots or holes are too wide, this will also influence the accuracy of the radar measurement.

For a stilling well with reducer there are some possible solutions:• Cut the reducer and provide a mounting flange for the radar. This can be a challenge and will typically require a hot working permit. Sometimes a manual oversized pipe cutter is suggested, but this is often impractical due to limited work access.• Use of an insert pipe of a smaller diameter. This should be done on clean products. And even then, the user should be aware that the application of an insert can prevent the product in the insert from mixing well with the tank content. As result the stilling well should not be used for sampling, and in extreme cases the level can even be off when compared to the rest of the tank.Smaller diameter stilling wells are exponentially more sensitive to contamination than large diameter stilling wells. For low viscous products such as crude, the stilling well diameter should always be larger than 10ins.





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Measuring Free Space Application using Radar When measuring with radar in free space applications near the tank shell, one can observe the multi-path effect. A minimum distance to tank shell and other obstructions in the tank shall be observed such that reflections of the obstructions and tank shell will not influence the accuracy of the measurement.

Measuring using Servo With a free space servo measurement, a servo can be installed on any stable position on the roof, if sufficient distance to vertical obstructions and inlet or outlet of the tank is maintained. For servo stilling well applications, any stilling well with sufficient diameter can be used (in general 8ins is enough – for smaller tanks even smaller can suffice).

Measuring rangeA general concern when measuring level in tanks is the measuring range that can be used for custody transfer. At the tank top, the minimum distance between the surface of a radar antenna and the liquid (ullage) is 50cm. At low levels, the radar measurement will be approved for custody transfer from approximately 30cm above the tank bottom. This can be improved to 5-10cm by installing a deflection plate at the lower side of a stilling well. This solution is however not ideal as it also requires some space. For free space applications, a deflection plate will not help. Servo gauges can always measure the whole range.

Thermal expansionEssential for custody transfer applications is the thermal compensation. Both the content of the tank as well as the physical parts (tank shell and/or stilling well) should be compensated, especially on larger tanks and when the tank shell differs more than 10degC from the tank shell calibration temperature. Accurate measurement and compensation of the tank content can increase cost efficiency up to US$15,000 per tank fill. This is both for the servo as well as for radar gauging done with external temperature measurements.

Thermal compensation of the stilling well or tank shell can be done by measuring the temperature of the liquid and gas phase in the tank. With heated application with viscous product, where radar is the preferred choice, the radar should apply these corrections to the innage reading.

With servo gauge the need of compensation of the tank shell is smaller, as the measuring wire itself already compensates for most of the uncertainty introduced by the dry part of the tank shell.

Functional requirementsMost custody radar or servo solutions can be equipped with a broad range of options such as input for average product and gas temperature, pressure transmitters, water bottom sensor, analogue output and alarms.

Density profileDensity stratification can occur when a different product batch is loaded on top of another into one tank. If this batch has a different temperature or even different composition than the rest of the tank content, it can stay as a layer on top. Not always does the lightest product rest on the heavier product or do they mix over time. How well these layers mix or remain separated over time depends on how the tank is operated. This layering can occur with heavy products, but also with refined products and very light products such as LPG and chemical gases.

The batches can have different product composition as result of the production process, but also when they arrive from marine barges or pipeline. Operators should know whether density stratification is present in the tank in order to make sure samples used for quality purposes should be representative for the whole tank contents. Mixing can be considered provided the tank is equipped and sufficient time is available.

Some high-end servo level gauges, such as Honeywell Enraf 854, have the capability to automatically measure a 10 spot density profile. Density profiling, possible also enhanced

with a temperature information, allows the operator to visualize possible density stratification. This allows better and energy efficient mixing and the advantages on pressurized tanks, where representative sampling is cumbersome are evident.

Radar gauges can be enhanced with hybrid density measurements, also called HIMS or HTMS, where the average density over the total product height is assessed using pressure measurement, but it is not capable of doing density profiles.

Interface measurementNext to the interface between air and product, a second interface may be relevant as for example, the water bottom in a gasoline or diesel tank. With a modern servo gauge, water bottom measurement (or any second interface measurement between different products) is a standard available feature.

When it is desired to measure the free water interface in a tank, it is important to install the servo gauge preferable above the water sump, so it can measures the smallest quantity. Water interface measurement is an excellent and well proven application on clean and not viscous products.

Installation aspectsRequired mechanical modificationsFor brownfield installations (modifying/upgrading existing installed base), the selection is a simple decision tree. If an earlier version of a servo is installed, an upgrade to a state-of-the art servo type is easy and straightforward, as the installation was already suitable for servo. If an older servo is to be replaced by a radar, one needs to make sure that the installation meets the specifics applicable for radar. These specifics include stilling well dimensions and slots, tank shell effect, obstructions, nozzle, deflection plate, etc.

In general a site survey is advised. With a site survey experienced technicians will evaluate the installation and application on all aspects and reduce costly surprises at a later stage.

CostsThe following costs should be considered when selecting a servo or radar gauge for custody transfer applications:

Costs of a device: The purchase price difference between a servo gauge and a radar gauge is marginal. In general this should not be a differentiator except when additional features such as density profiling or water interface measurement are needed. In that case, a servo gauge is more cost effective compared to a radar gauge.

Costs of mechanical modifications: Prior to the decision between a radar gauge and a servo gauge, one should check the mechanical tank installation constraints as earlier discussed and take those potential extra costs into account.

Maintenance cost: Contaminating applications (such as bitumen, asphalt, long and short residue, polymerizing products) can give a relative high maintenance costs using servo gauges.

Radar is an excellent solution for all these products.On clean products both servo and the radar gauges require minimum

maintenance. On clean products therefore maintenance should not be a selection criterion.

So, in order to select the best solution for custody transfer measurements one should carefully select the measuring principle

based on the actual requirements of the target application and not on the preference of one measurement technique

over the other. Most sites have different types of applications and installations and therefore it is recommended to always select a supplier that offers both servo and radar measurement techniques with the highest accuracy possible (0.4mm) to get the best

return from an investment.

www.honeywellprocess.com

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TECHNOLOGY AND AUTOMATIONSIMULATION TECHNOLOGY

After successful events in Brazil and Italy, the Decision Science Forum conference on decision support technology and applications based on simulation, optimisation and serious gaming, took place in Scheveningen, The Netherlands. The two-day event was hosted by Systems Navigator at the Steigenberger Kurhaus Hotel and presented a number of innovative concepts in the maritime, logistics and manufacturing industries.

Systems Navigator is an independent software consultancy firm based in Delft, The Netherlands. The company specialises in the design and creation of decision support solutions based on operations research technology. Specific expertise is in using a combination of discrete event simulation and optimisation technology to design decision support models that can predict system performance, as well as being used for operational decision making by means of planning and/or scheduling.

Day 1 of the conference focused on maritime logistics. The programme included presentations by or on VTTI, Vopak, Systems Navigator, Ballast Nedam and Gate terminal. The most salient innovations that were presented during the first day were Gate terminal’s inventory management simulation, VTTI’s virtual terminal safety culture game and Ballast Nedam’s simulation-based offshore operations planning tool.

The conference was opened by Systems Navigator presenting the added value of simulation in the design of terminals. The presentation updated the audience on the latest developments concerning simulation in terminal design including topics such as complex terminal infrastructure, berth selection rules and processes, vessel characteristics and priorities, variability in vessel arrivals, dedicated infrastructure, bunkering and changing weather conditions.

The presentation concluded that close integration of simulation during the entire design phase helps to raise questions that otherwise might go unnoticed. In addition, simulation helps to quantify design decisions, and provides important insight into the behaviour of a liquid bulk terminal under varying conditions, such as peak-load, bad weather, failures, etc. Thus scenario comparisons and quick response to new data are the keys to successful terminal design.

VTTI has facilities in 11 countries strung across five continents, and storage capacity of more than 6 million cbm. Current expansion programmes are expected to give VTTI capacity of 8 million cbm later this year. More than 6,000 vessels are loaded and discharged each year.

However, as a fast growing tank storage company with different terminal maturity levels across the globe and different cultural settings, VTTI sticks to a single HS&E policy, with the non-negotiable dictum: “All accidents can be avoided”.

The presentation by Ronald Hoogendijk, general manager, and Margit Blok, HSE director, of VTTI, showed that process safety is key to preventing major incidents, and creating a safe work environment. But management decisions needed to ensure this outcome are multi-dimensional and interdependent. So how do the technical, organisational and behaviour interdependencies relate and influence each other?

Normal education processes, such as training and workshops, do not offer the possibility of confronting people with the impact of the interdependencies on their own multi-dimensional decision making, it was stated.

So VTTI and Systems Navigator together created a virtual terminal model which makes it possible to experience how multidimensional interdependent management decisions impact the safety performance of the terminal. The terminal safety game can facilitate a simulation exercise for single actors or groups. In the game, safety improvement is the key to success. Players must make balanced decisions to invest in “hardware, safety systems, software, better procedures/training, and ‘mindware’ - safety leadership & safety culture”. As in real life the simulation has no single solution for success, while the odds can be stacked against the participant. The terminal safety game can facilitate a simulation exercise for single actors or groups.

Feikje Wittermans, account manager at Gate project, gave a presentation on ‘Simulating inventory management at the Gate LNG import terminal’. Gate is the first LNG import terminal in Rotterdam, with access to all of northwest Europe. A simulation model has been developed to gain an understanding of the effects of changes in, for example, vessel sizes, number of customers, annual unloading schedules, etc.

The Gate terminal provides an alternative to pipeline gas, and is considered as a major component of the Dutch strategy of becoming the gas hub of Europe. The newly-opened terminal receives LNG by unloading carriers at two jetties, temporarily storing LNG in the three storage tanks and delivering gas to the national grid (GTS) after regasifying using cooling water from the Eon power plant. Yearly output in natural gas of the terminal is 12 billion cbm per year.

The presentation explained that inventory and throughput are ruled by many variables which in real life are compounded by several layers of complexity, such as variability in arrivals, more customers, spot cargoes, different vessel sizes, etc.

The original simulation tool SIMA has developed over time from a decision support-only tool into a general support tool. The simulation models used for decision support have developed from a complex, non-transparent model using huge Excel files into a user friendly web-based application allowing secured access from anywhere. Now additional functionality (eg, back loading) is easily added to the model. The next version of the model will also support the terminal planning function. Over several dimensions SIMA operators are able to change inputs and parameters in order to analyse the impact of these changes on the performance of the terminal.

For more information, [email protected]

Innovative concepts in simulation and optimisation were presented at the Decision Science Forum 2011 conference

Playing the game



Mixer launches self-actuati ng rotary unit

Mixer Technologies Inc has offi cially launched its newest product, the SA-400 Rotary Mixer, a self-actuati ng mixer designed for the petrochemical industry. The SA-400 Rotary Mixer allows for in-tank mixing and blending of large volumes of petrochemical material.

Developed in response to expression by Canadian terminal operators of a need for an eff ecti ve method to eliminate strati fi cati on of petrochemical products, the SA-400 provides in-tank blending and homogenisati on “far more successfully and effi ciently than traditi onal methods currently available in the marketplace”.

Dave Carruth, of Upside Engineering, a Calgary-based engineering fi rm specialising in tank terminal design, said: “A major client of ours required an alternati ve to propeller style mixers due to serious reliability issues. The SA-400 proved to be the only viable alternati ve due to the simplicity of its design. We were sati sfi ed the SA-400 would provide the client with the reliability they were looking for, and we were

happy to recommend it.” “Inspired by the simple but eff ecti ve design of a rotary sprinkler, the

SA-400 has few internal parts, making it ideal for mixing and blending applicati ons that can prove to be problemati c for other mixers,” added Jeff Heath, president and CEO of Mixer Technologies Inc. “The well-known issues with traditi onal propeller-style mixers have led to an increase in use of jet mixers for blending. However, one of the shortcomings of other jet mixers is that the gears can become ineffi cient or clogged by the product

being jett ed, thereby preventi ng them from working properly.”The main features of the SA-400 include:

Variable Speed - The rotati onal speed can be adjusted depending on system outputs and material compositi on

Flexibility - The SA-400 can be confi gured and customized to fi t various tank sizes, product fl ow rates and material compositi on

Multi ple Applicati ons - The SA-400 can be used with a variety of materials including crude oil, biodiesel, gasoline, diluted bitumen (syntheti c crude) and HFO.

www.mixertech.com

TECHNOLOGY & SYSTEMS

Allerion awarded H&S certi fi cate Allerion Oilfi eld Services Inc has received a Certi fi cate of Recogniti on (COR) from the Alberta Municipal Health and Safety Associati on validati ng its commitment to health and safety.

Allerion was awarded the Certi fi cate of Recogniti on for meeti ng the Alberta Municipal Health and Safety Associati on’s (AMHSA) established standards within its health and safety management system. Allerion was evaluated by a certi fi ed external auditor with respect to its management’s commitment to health and safety, hazard identi fi cati on and assessment, hazard control, worker competency and training, inspecti ons, emergency response planning, incident investi gati on and system administrati on.

“We are very pleased to receive this certi fi cate of recogniti on,” said

Jeff Heath, president and CEO, Allerion Oilfi eld Services. “Health and safety have always been our fi rst priority and this certi fi cati on confi rms our fundamental commitment to keep our employees, customers, and communiti es safe by operati ng only at the highest standards of practi ce in our industry.”

“Allerion achieved a score of 96 percent on the COR audit in Alberta,” commented Chad Burke, director of health, safety and environment at Allerion Oilfi eld Services. “We are currently in the process of achieving COR equivalency for operati ons in Saskatchewan, Manitoba, Newfoundland, and New Brunswick.”

AMHSA is a non-profi t associati on that awards a Certi fi cate of Recogniti on (COR) to employers who demonstrate they have stringent health and safety management systems in place.www.allerion.com

Truck mounted stati c ground verifi cati onNewson Gale has launched a truck mounted stati c ground verifi cati on system – the Earth-Rite MGV. The unit enhances safety during transfer of fl ammable or combusti ble materials. In cleaning, maintenance or spill control operati ons in the petrochemical industry, vacuum trucks are oft en used to collect waste or contaminated products for disposal. With the operati on taking place in a hazardous area, the need to control all types of igniti on sources is paramount. However, the vacuum transfer process of potenti ally low

conducti vity liquids or highly resisti ve loose solids can generate large amounts of stati c electricity, meaning that all equipment, including the truck should be properly bonded to a verifi ed earth point (ground).

API and NFPA guidelines recommend that such bonding connecti ons are tested to verify an adequately low resistance to earth/ground prior to starti ng up the recover/transfer process, however unti l now the equipment required to do this required specialist training and may not always have been suitable for safe use within the hazardous atmosphere. Furthermore, long delays and downti me can someti mes be experienced while waiti ng for a qualifi ed electrician to sign off that the truck is properly bonded and grounded before the operati on commences.

The new truck mounted Earth-Rite MGV derives its power source from the vehicle batt ery, and uses certi fi ed ‘Intrinsically Safe’ monitoring techniques to verify not only a good bond to a valid ground point, but more importantly confi rmati on that the ground point to which it is att ached represents a sati sfactorily low resistance to true earth. The unit is simple to install and operate and provides confi rmati on of

positi ve bonding and grounding to the operator by way of a bright fl ashing green LED cluster. It also provides a pair of change over contacts (DPDT) for connecti on to additi onal safety devices (strobe lights, audible alarms) or for interlocking with the vacuum pump or control valve. The ‘business end’ of the system employs a heavy duty stainless steel clamp with universal clamping jaw which can be connected to fl at or rounded surfaces, including directly to ground rods.

Units have obtained Intrinsically Safe certi fi cati on for use in the petrochemical industries, according to the requirements of IECEX, ATEX, CSA/US and NEPSI (China), and may be used in all common gas, vapour or dust explosive environments.

Several sites in Europe, North America and Australasia are already using the system for their hazardous area vacuum truck operati ons with reports of enhanced safety, improved producti vity and robust product reliability. The system is also useful for fl ammable liquid or combusti ble bulk material delivery tankers involved in chemical distributi on and similar operati ons.www.newson-gale.com



SUMMER 2011 | STORAGE TERMINALS MAGAZINE » 55

ILTA 2011

Demands in tank gauging will only increase.Time to discover a new system?

The all-new Raptor tank gauging system is well worth a closer look. With Raptor you

are better equipped to handle the ever-increasing demands on efficiency, safety and

accuracy. The system is open and scalable, and offers new levels of safety as well as

IEC 62591 (WirelessHART) technology. It measures with unsurpassed accuracy for

precise bulk liquid inventory management and custody transfer.

Visit www.rosemount-tg.com to learn more and watch our interactive

presentation about Raptor. Or call us direct to book a personal meeting.

The all-new Raptor tank gauging system

Always ready for your next challenge

The Emerson logo is a trademark and service mark of Emerson Electric Co. © 2011 Emerson Electric Co.

Emerson Process ManagementRosemount Tank [email protected]

VISIT US AT ILTA BOOTH #607

HALL E

Demands in tank gauging Demands in tank gauging will only increase.Time to discover a new systeTime to discover a new system?

The all-new Raptor tank gauging system is well worth a closer look. With Raptor you The all-new Raptor tank gauging system is well worth a closer look. With Raptor you

are better equipped to handle the ever-increasing demands on efficiency, safety and are better equipped to handle the ever-increasing demands on efficiency, safety and

accuracy. The system is open and scalable, and offers new levels of safety as well as accuracy. The system is open and scalable, and offers new levels of safety as well as

IEC 62591 (WirelessHART) technology. It measures with unsurpassed accuracy for HART) technology. It measures with unsurpassed accuracy for

precise bulk liquid inventory management and custody transfer. precise bulk liquid inventory management and custody transfer.

Visit www.rosemount-tg.com to learn more and watch our interactive Visit www.rosemount-tg.com to learn more and watch our interactive

presentation about Raptor. Or call us direct to book a personal meeting.presentation about Raptor. Or call us direct to book a personal meeting.

The all-new Raptor tank gauging system

Always ready for your next challenge

The Emerson logo is a trademark and service mark of Emerson Electric Co. © 2011 Emerson Electric Co.The Emerson logo is a trademark and service mark of Emerson Electric Co. © 2011 Emerson Electric Co.The Emerson logo is a trademark and service mark of Emerson Electric Co. © 2011 Emerson Electric Co.

Emerson Process ManagementRosemount Tank [email protected]

VISIT US AT ILTA BOOTH #607

HALL E



56 « SUMMER 2011 | STORAGE TERMINALS

ILTA 2011

Storage Terminals Magazineis the only publicati on to have

EXCLUSIVE‘Door-Drop’ Distributi on

at

2011

at

2011

On the fi rst day of the trade show, a copy will be dropped at the room door of all delegates, exhibitors and visitors allowing them to read the issue in the comfort of their own room, over breakfast or simply take with them to the conference.

It will be the fi rst magazine they see and read.Can you really aff ord not to be in there?

To book your positi on, or to discuss adverti sing opportuniti es, please contact Kalpesh Patel on [email protected] or +44 (0)20 8406 8992


door ad.indd 1 15/12/2010 14:03

2012



Drylok disconnect couplersOPW Engineered Systems has released its Drylok Dry Disconnect Coupler for all kinds of hazardous fluids where product loss is a problem, such as high-pressure lines, high flow rates, slurries, and gases.

OPW has designed the Drylok to provide “unprecedented” safety during the transfer of hazardous, corrosive and volatile liquids such as acids, solvents and petrochemicals. Featuring an interlocking handle, the Drylok averts accidental spills by preventing uncoupling while the valve is open. In addition, the Drylok’s flat face minimises fluid loss, further reducing exposure to risk during operation.

Additional benefits include: the “driest disconnect in the industry” - less than 1-cc of fluid loss from a 3ins unit; ideal for high-pressure line applications - can be opened and closed against 150 psi maximum head pressure; optimum flow rate - less obstruction in easy-flow interior

optimises the flow rate in high-pressure or high-viscosity applications; simple lever action connects valve to coupler and opens and closes the flow. No clamps, clips, loops or tabs that can cause operator error.

Drylok couplers are available in 1ins, 2ins and 3ins sizes and are manufactured from a range of materials, including 316 stainless steel, Alloy 20 or Hastelloy C with NPT, BSP, ASME Flanged, BW and SW end connections. Drylok’s have also been manufactured with an adjustable packing nut with V-type material that provides a continuous compression, an emission-free seal on the handle shaft and a standard O-ring seal for longevity.

In addition, OPW Engineered Systems has manufactured its Visi-Flo 1400 and 1500 Series Sight Flow Indicators to provide a quick, reliable and inexpensive way to verify flow rate and direction while monitoring colour and clarity in fluid lines. Dollar for dollar, OPW sight flow indicators are the most cost efficient and effective way to monitor visually the flow of fluids and to determine where, if any, problems exist at certain points along the industrial process line.

Visi-Flo’s radial seal creates a constant and uninterrupted sealing force between the body and outside diameter of the glass lens. This sealing method provides a longer lasting and better seal than

conventional flat seals. Visi-Flo’s bolt-on-body design requires no special maintenance or torqueing sequence to be followed to prevent leaks. This is claimed to result in a safer, more reliable sight flow indicator than units using tie rods to fasten lens and seal to body.

Visi-Flo’s are available in two series - the Standard 1400 Series and the 1500 High-Pressure High-Temperature Series. Both the 1400 and 1500 Series are available in threaded or flanged configurations and are tested at 150 percent of the rated pressure to ensure maximum reliability in harsh operating conditions. Additional features include an exclusive 3-year ‘no-leak’ guarantee; maintenance-free design; dimensional interchangeability; full vacuum service rating; adequate horizontal and vertical range; and four different indicator styles: propeller, bi-directional flapper, bi-directional plain and drip tube.

Ross Pliska has been appointed vice president of the Transportation Business Unit of OPW Fluid Transfer Group. As part of OPWFTG’s strategic growth initiative, in 2009 the company was organised into two global units: OPWFTG Global Transportation and OPWFTG Global Chemical & Industrial. Pliska will oversee the global Transportation Business Unit that markets Civacon, Knappco, Sure Seal, Hiltap, OPW Engineered Systems and Midland brand products.

Pliska earned his BSc in Mechanical Engineering from the University of Alberta, and his MBA from the University of Tennessee. He joined Dover in 2003 as a manufacturing/applications engineer for Alberta Oil Tool (AOT), in Edmonton. He was named technical services Manager in 2005 and promoted to VP sales and engineering in 2007. In March of 2010, he was named VP of international sales for Norris Production Solutions, another Dover Company and provider of oil and gas artificial lift solutions.www.opw-es.com


Storage Terminals Magazineis the only publicati on to have

EXCLUSIVE‘Door-Drop’ Distributi on

at

2011

at

2011

On the fi rst day of the trade show, a copy will be dropped at the room door of all delegates, exhibitors and visitors allowing them to read the issue in the comfort of their own room, over breakfast or simply take with them to the conference.

It will be the fi rst magazine they see and read.Can you really aff ord not to be in there?

To book your positi on, or to discuss adverti sing opportuniti es, please contact Kalpesh Patel on [email protected] or +44 (0)20 8406 8992


door ad.indd 1 15/12/2010 14:03

TEA’s new Frere

James G Frere, PI Tau Sigma, honorary engineering fraternity, is joining Tulsa Engineering Alliance (TEA) as Engineer V.

Frere has over 25 years of experience that combines the fields of petrochemical process, electrical controls, power transmission, hydraulic systems, product design, system design, cost estimation and fabrication. In

addition he has many years of customer relations and has served as liaison between customers and manufacturers in the field of electrical, mechanical and petro-chemical engineering.

Visi-Flo’s bolt-on-body design requires no special maintenance

The Drylock family of disconnect coupler





DON’T MISS EUROPE’S LEADING INTERNATIONAL EVENT FOR THE TANK TERMINAL INDUSTRYAt StocExpo 2012, independent and major terminal operators as well as manufacturers and suppliers will come together to redefine strategic vision and technical requirements for tomorrows’ terminals.

DON’T MISS THE PACKED THREE DAY CONFERENCE!Exclusive speaker line up of over 25 of the industry’s leading experts

DAY ONE: Commercial overview, industry developments, and market outlook for bulk liquid storage

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Download the full programme and conference booking form at www.stocexpo.com

MEET 170+ unrivalled exhibitors. Your opportunity to see and compare hundreds of products and discover more cost-effective solutions to existing processes

LEARN from over 25 expert speakers at the world renowned Conference. With a programme boasting a range of strategic, commercial, regulatory and technical sessions, there’s something for everyone

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THE STORAGE TERMINAL OPERATORS’CONFERENCE & EXHIBITIONTHE AHOy ROTTERdAm13 - 15 mARCH 2012

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‘Ten easy steps’CPD has developed a series of modelling applicati ons to assist fi re fi ghters, hazmat teams, HSE managers, engineers, consultants and police with emergency management.

CPD’s emergency management soft ware ‘iResponse’ is used currently in more than 20 countries.

Based on the standards of iResponse and the system’s underlying principles of a user-friendly, dynamic interface, CPD has produced Thermal Modelling Soft ware iResponse Thermal and a Dispersion Modelling Soft ware iResponse Dispersion to assist professionals with their emergency management plans. The applicati ons enable the user to test; engineering of a design, emergency management plans, evacuati on plans and environmental impacts. And, in fewer than 10 steps users have the ability to model a wide range of scenarios.

‘iResponse Thermal’ enables modelling of tank fi res, jet fi res, pool fi res and bund fi res. Through the input of relevant atmospheric conditi ons such as wind speed, wind directi on and temperature, thermal heat radiati on contours are displayed, giving distances and areas of kw/sqm chosen by the user. In additi on, iResponse Thermal includes a ‘Burn Down Calculator’ providing the length of ti me a given product will burn unti l incinerated.

‘iResponse Dispersion’ allows the user to follow a similar short sequence as ‘iResponse Thermal’ with the result being both plan and profi le views of a product as it disperses into the atmosphere, providing the user with distances and area covered by a release. iResponse Dispersion can model instantaneous and conti nuous releases, with a heavy gas capability to follow in summer this year.

Ross Coulman, operati ons director of CPD commented: “We have seen great success so far with iResponse and we are now at a stage in our development and knowledge of emergency management where we can identi fy new opportuniti es. We have worked alongside fi re and HSE personnel during the development of iResponse and we can clearly see a need for off ering easy to use thermal and dispersion modelling applicati ons as separate enti ti es. One of the big selling points of the applicati ons is that users can achieve their modelling in fewer than 10 easy steps, which we are fi nding is an att racti ve propositi on to users. We are extremely proud of iResponse Thermal and iResponse Dispersion and they are welcome additi ons to the iResponse family.

Each applicati on is available for a limited ti me only for €99 ($135). The cost for buying both applicati ons is €160 ($220).

www.cpd-limited.com/preorder.asp

Blackmerapplies asphalt handling

Blackmer’s new NP Series sliding vane pumps have been designed to provide effi cient transfer when handling asphalt or bitumen. NP Series pumps are claimed to be ideal for all of the diff erent transfers of raw products from storage into the refi nery, and from process to process within asphalt operati ons.

The NP Series pumps can meet the needs of asphalt-handling applicati ons because they have been designed for the handling of a wide variety of liquids at varying temperatures, pressures and viscositi es. This allows the NP pumps to off er versati lity while sustaining a high-level of performance and trouble-free operati on.

NP Series pumps are available in fi ve sizes, with port sizes from 1.5ins to 4ins. They feature fl ow rates from 5 to 500 gpm (19 to 1,893 lpm) at operati ng temperatures up to 500degF (260degC), with an opti onal jacketed pump head for high-temperature operati ng atmospheres. They can handle viscositi es ranging from 30 to 20,000 ssu (4,250 cP) at diff erenti al pressures up to 150 psi (10.3 bar) with standard constructi on, while an adjustable relief valve protects against

excessive operati ng pressures. With opti onal materials, maximum viscositi es can go to 100,000 ssu (22,000 cP) and diff erenti al pressures up to 200 PSI (13.8 bar).

All NP pump models feature Blackmer’s sliding-vane operati ng principles, which “guarantee consistent volumetric performance, even aft er signifi cant in-service ti me”. This eliminates the effi ciency-robbing ‘slip’ that shortens lobe and gear pump life, and improves producti on yields by stripping lines of residual product. NP pumps also off er excellent self-priming and dry-run capabiliti es.

www.blackmer.com

APT opts for OpenTAS

UK’s Associated Petroleum Terminals (Immingham) has decided to deploy OpenTAS. APT expects to go live in February with the terminal management and automati on system developed by internati onal consulti ng and soft ware company Implico. What is diff erent about this project is that it focuses exclusively on the management and automati on of processes used for loading and unloading ships’ cargo.

APT operates terminals at the Port of Immingham that serve the ConocoPhillips and Total refi neries. The two petroleum companies each have a refi nery just outside the town located on the banks of the Humber Estuary on the North Sea coast. Both companies use sea freight for transportati on and they share the same facility. Setti ng up a joint venture company to run the facility and manage the loading and shipping operati ons of both refi neries was therefore a logical step.

In 2010, APT made the decision to replace its ageing business system. The company concluded that OpenTAS was the system it should be working with. When the project is completed in February, APT will use OpenTAS exclusively for ship loading automati on and administrati on processes, including inventory management. All acti viti es related to planning and record keeping will then be carried out consistently in OpenTAS. The system will ensure that products are always available in the right quanti ti es when they are due to be loaded. Further advantages that OpenTAS brings to APT: automati c receipt of nominati ons, communicati on with DCS system, transfer of results back to nominati ng systems, producti on of ship’s papers, stock management and customs reporti ng.

Another benefi t made possible by the automati on of data transfer is the minimisati on of transmission errors caused by manual input of the loading data. Because of the vast improvement in data quality, accounti ng is always accurate and complete.

www.implico.com

APT will use OpenTAS for ship loading automati on and administrati on


NP Series sliding vane pumps have been designed to provide effi cient transfer when handling asphalt or bitumen


TECHNOLOGY AND AUTOMATIONUPCOMING EVENTS

StocExpo 201213-15 March 2012. Ahoy, Rotterdam, Netherlands.Important Announcement! London-based trade show organiser easyFairs, has announced the acquisition of the Storage Terminal Operators’ Conference & Exhibition (StocExpo), a portfolio of international events for the bulk liquid storage sector. “We are excited to be organising this very successful event,” said easyFairs CEO Jean-François Quentin. “StocExpo fits perfectly with our industrial shows such as the easyFairs SOLIDS European Series and PUMPS & VALVES. We also see great opportunities to develop this well respected brand.”Peter Patterson, managing director of StocExpo, commented: “Having developed the show for several years, we are very proud that StocExpo has earned its place as the leading international event for the bulk liquid storage sector. We are confident that easyFairs, with its international presence and successful business model, is the right company to take the show to the next level.”The next StocExpo European event takes place in Rotterdam on 13-15 March 2012 at The Ahoy. 160 exhibitors and 1,554 visitors from around the globe took part last year. There are three other annual conferences and exhibitions in the portfolio: Tank Storage Canada, Tank Storage Asia (Kuala Lumpur) and Tank Storage Istanbul.The shows will continue to be run out of the UK, now from easyFairs’ London offices under the leadership of Matthew Benyon, managing director, UK and Ireland. For further information contact:Fax: + 44 208 892 [email protected]

2012 Bakken Crude Oil Logistics Conference29-30 March, 2012. The Houstonian Hotel, Houston, Texas, USAThis conference is in response to the sudden challenge being faced by US petroleum and logistics companies who are pumping crude out of the Bakken shale in North Dakota and Montana. The sudden increase in volume has resulted in the problem of shipping the crude to the refineries. Truck and rail are being used and the volume has put an enormous strain on the supply of tank cars and available tank trucks. This conference is organized to help bring together the crude producers, the rail companies, truckers, barges, and those who provide technology solutions to help develop a more efficient supply chain. www.crudeoillogistics.com

Platts European Oil Storage 10-11 May 2012, The Hilton, Amsterdam, NetherlandsBuilding on the success of previous years, Platts 5th Annual European Oil Storage conference will bring together leading terminal operators, EPCs, logistics and distribution companies, suppliers and service providers, regulatory bodies, and oil gas and petrochemical companies to discuss the most pressing challenges facing the industry.Platts 5th Annual European Oil Storage conference provides and unrivalled opportunity for delegates to network, share best practice and learn what others in the storage industry are currently doing to maximize profitability in today’s challenging marketplace.Contact: Simon Kears Tel: [email protected]

ILTA 201221-23 May 2012. Houston, Texas, USAILTA’s 32nd Annual International Operating Conference & Trade Show once again takes place at Hilton Americas-Houston & George R Brown Convention Center.For further information contact:ILTA1444 I Street, NW Suite 400Washington, DC 20005Tel: +1 (202) 842-9200Fax: +1 (202) [email protected]

TSA Conference & Exhibition20 September 2012, Hilton Hotel Coventry, UKTank Storage Association’s Conference and Exhibition is the UK’s leading event for the bulk liquid storage sector and for all those who work in the fuels, chemicals, potable liquids, edible oils and fats storage industries.The annual one-day event will be held on Thursday 20 September 2012 at the Hilton Hotel, Coventry. The venue is located just off junction 2 of the M6 and is easily accessible by road, rail and air.The conference presenters, drawn from the Health & Safety Executive, the EnvironmentAgency and industry will discuss a diverse range of critical issues facing the industry. Theexhibition features companies showcasing their industry related products and services.TSABlack Dog Farm, WavertonChester, CH3 7PBTel: +44 (0)1244 335627Fax: +44(0)1244 [email protected]

Advertisers indexAC2 22

Advanced Polymer Coatings 14

American Tank & Vessel 25

Brodie International IFC

CarboVac 48

Chemtec Energy 34

Clark Creative 50

Emco Wheaton 10

FMC Technologies 4

Fort Vale Engineering 16

Honeywell Enraf 8

ILTA IBC

Isoil Impianti 29

Kanon Loading Equipment 12

L&J Technologies FC, 20

Mass Technology Corp. 42

Mistras Group 44

Oil Tanking OBC

OPW 52

Protego 19

Rosemount Tank Radar 55

Solventas Terminals 40

StocExpo 58

Tank Storage Association 46

TopTech Systems 30

Varec 33, 35, 37,39

Veolia Environmental Services 2

Williams Fire & Hazard Control 32

Forthcoming EVENTS

Merje VoltTerminal Manager, Oiltanking Tallinn

We Can, We CareOiltanking Tallinn is strategically located on the trade

routes linking Russia and the FSU countries with the rest

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

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

the terminal provides nonstop services to its customers.

Ensuring this is possible requires a lot of coordination.

Terminal Manager Merje Volt makes sure that all of the

departments in the terminal work in sync with each other,

so Oiltanking Tallinn can work as efficiently as possible.

Merje is at her happiest when everything runs like clock-

work, because she cares about fulfilling the needs of

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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STM Winter Issue 2011

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