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CONTENTS
Winter 2017 Volume 03 Number 04 ISSN 1468-9340
ON
THE
Operators know what it takes to manage the assets
inside their facilities. However, the pipelines that
transport their products are equally critical for efficient
COVER
asset health.
JOIN THE Copyright© Palladian Publications Ltd 2017. All rights reserved. No part of this publication may be reproduced,
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CONVERSATION
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Engineering Engineering Engineering
Uncaptioned images courtesy of www.shutterstock.com.
INNOVATION
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S
MANAGING EDITOR James Little
james.little@tanksterminals.com
ince the last issue of Tanks & Terminals
EDITOR Callum O'Reilly
callum.oreilly@tanksterminals.com was published, the US oil and gas
EDITORIAL ASSISTANT Anna Nicklin
storage industry has had to contend
anna.nicklin@tanksterminals.com with a particularly powerful hurricane
ADVERTISEMENT DIRECTOR Rod Hardy season. While Hurricane Harvey
rod.hardy@tanksterminals.com caused widespread destruction across Texas
ADVERTISEMENT MANAGER Chris Atkin – IHS Markit estimates that the damage from
chris.atkin@tanksterminals.com
the Category 4 hurricane will total US$60 – 100 billion, making it the second
PRODUCTION Ben Munro most destructive storm on record1 – it is fair to say that the energy industry
ben.munro@tanksterminals.com
stood up well to the unprecedented challenges that the storm presented.
WEB MANAGER Tom Fullerton
tom.fullerton@tanksterminals.com As mentioned in the comment that I wrote for the October 2017 issue of
SUBSCRIPTIONS Laura White Hydrocarbon Engineering, most of the refineries affected by the hurricane
laura.white@tanksterminals.com quickly resumed operations, while the NYMEX RROB spot price essentially
ADMINISTRATION Nicola Fuller returned to pre-hurricane levels within a month of Harvey making landfall.
nicola.fuller@tanksterminals.com While a collective pat on the back is well deserved in the face of such
CONTRIBUTING EDITORS adversity, there are several valuable lessons that the storage industry must
Nancy Yamaguchi Gordon Cope
learn from this recent challenge. The storm resulted in a number of significant
tank failures, with floating roofs coming under the most intense spotlight.
The Houston Chronicle reported that there were more than 15 incidents of
floating roofs falling on top of oil storage tanks during the storm, impacting
the likes of Valero Energy, Shell, ExxonMobil, Kinder Morgan, Phillips 66 and
Magellan Midstream, amongst others.2 As torrential rainfall began to accumulate
on some of the floating roofs, drainage systems started to fail and the roofs
began to leak, sink or even collapse. Some are now calling for an inquiry into the
potential weaknesses of floating roofs, as part of a broader industry review of
tank failures. A key area of concern has been a lack of design standards and best
SUBSCRIPTION RATES practices pertaining directly to floating roof tanks.
Annual subscription £110 UK including postage
/£125 overseas (postage airmail). This concern is echoed in an article from Concord Tank that features in
Two year discounted rate £176 UK this issue of Tanks & Terminals. The article examines how common mistakes
including postage/£200 overseas (postage airmail).
can cause floating roofs to sink, presenting an example of problems that can
SUBSCRIPTION CLAIMS be associated with floating roof repair work. The article traces the troubles
Claims for non receipt of issues must be made within 3 months of
publication of the issue or they will not be honoured without charge. back to a lack of clear construction, inspection and repair guidelines for
APPLICABLE ONLY TO USA & CANADA floating roofs within the API’s standards. Concord Tank argues that the current
Hydrocarbon Engineering (ISSN No: 1468-9340, USPS No: 020-998) is
published monthly by Palladian Publications Ltd GBR and distributed
standards foster the perception that floating roof repairs are not as critical
in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831. as floor and shell repairs, while offering fewer constraints for inspectors,
Periodicals postage paid New Brunswick, NJ and additional mailing
offices. POSTMASTER: send address changes to HYDROCARBON engineers and repair contractors. The company suggests that there are three
ENGINEERING, 701C Ashland Ave, Folcroft PA 19032
core elements that need to change in floating roof repair projects (turn to
p. 25 to find out more).
Other topics covered in this issue of Tanks & Terminals include leak
detection, level measurement, corrosion protection, and cleaning and
15 South Street Farnham Surrey
GU97QU ENGLAND
inspection. Contributing Editor, Gordon Cope, also provides an overview of the
Tel: +44 (0) 1252 718 999 storage industry in the Middle East and North Africa (p. 12).
Fax: +44 (0) 1252 718 992 I hope you enjoy the issue and would like to take this opportunity to thank
our readers, contributors and advertisers for their support throughout 2017.
1. 'Harvey and Irma Recovery One Month Later: IHS Markit Assesses Supply Chain and Recovery
Dynamics', IHS Markit, (3 October 2017).
2. BLUM, J., ‘Failures of floating-roof oil tanks during Harvey raise concerns’, The Houston
Chronicle, (11 October 2017).
TANK AND
TERMINAL
DEMOLITION
SERVICE
N IN
AS SEE ND
NKS A
TA
ALS
TERMIN
INE
MAGAZ
BETTER SAFETY
PERFORMANCE
BETTER PRICES
FOR SCRAP METAL
5 Winter 2017
WORLD NEWS
IN BRIEF TransMontaigne Partners inks deal with
USA |
Plains All American Pipeline
A wholly owned subsidiary of
TransMontaigne Partners LP has
The West Coast facilities include
two waterborne refined product and
With necessary retrofit work to handle
heavier grades of crude oil, USD Partners LP agreed to acquire the Martinez Terminal crude oil terminals, as well as
has commenced operations at its and Richmond Terminal from an affiliate 64 storage tanks (approximately
destination terminal in Stroud, Oklahoma. of Plains All American Pipeline LP, for a 5.4 million bbls of storage capacity).
The terminal provides a destination point total purchase price of US$275 million. The facilities have extensive
for rail-to-pipeline shipments of heavy The acquisition expands the connectivity to domestic and
crude oil from the partnership’s Hardisty partnership’s storage and terminalling international refined product and
terminal in Western Canada and provides footprint into the San Francisco Bay crude oil markets through significant
connectivity to one of the largest crude oil Area refining complex. marine, pipeline, truck and rail
storage hubs in North America. The closing of the acquisition is capabilities. They are also supported
expected to occur around 1 January 2018, by multi-year, fee-based agreements
subject to customary closing conditions. with contract terms of up to five years.
M
acquisition includes 129 Chevron branded
obil Oil New Zealand Ltd has latest of several recent investments
retail service stations, principally located in
announced plans to improve by Mobil, including the launch of its
the Greater Vancouver area; 37 commercial
fuel supply capacity for the Synergy family of fuels and
cardlock locations in B.C. and Alberta;
South Island with the construction associated service station
three terminals in B.C.; and a 55 000 bpd
of two tanks at its fuel terminal in enhancements, and the upgrade of
light/sweet crude refinery in B.C.
Lyttelton. its bulk fuels terminal at Mount
The tanks will be located Manganui.
adjacent to Mobil’s existing terminal “Construction of new tanks will
IL&FS Group has issued a statement at George Seymour Quay and will restore fuel storage capacity at our
denying recent press reports that it is store petrol and diesel. They will Lyttelton operation, which, along
planning to sell its Fujairah (IPTF) Terminal. replace those damaged by a 2014 with the Lyttelton-Woolston
IL&FS said that it remains positive about its landslide at Mobil’s Naval Point pipeline and Woolston Terminal, is
oil storage business in the region, despite facility. The company expects to an important part of the fuel supply
the current geo-political situation. It also complete the work in early 2019. chain in the South Island,” said
confirmed that it is going ahead with Restoring the Lyttelton fuel Andrew McNaught, Country
the planned phase two expansion of the terminal’s storage capacity is the Manager for Mobil.
terminal, which will provide enhanced
facilities and services to existing and
potential customers.
INEOS acquires the North Sea Forties
UK |
Pipeline System and Kinneil Terminal
HES International B.V. has signed an
I
agreement with Valt B.V., a 50/50 joint
NEOS has acquired the Forties Ownership and operation of FPS,
venture between Vitol and Sargeant,
Pipeline System (FPS) and the Kinneil gas processing plant and
to acquire Valt Asphalt Terminal B.V.,
associated pipelines and facilities oil terminal, the Dalmeny storage and
a bitumen terminal located in Botlek,
from BP. export facility, sites at Aberdeen, the
Rotterdam. The terminal delivers storage,
The 235 mile pipeline system links Forties Unity Platform and associated
handling and blending services to the
85 North Sea oil and gas assets to the infrastructure has now transferred to
European and African bitumen market.
UK mainland and the INEOS site in INEOS FPS, together with
Grangemouth, Scotland. approximately 300 personnel.
Winter 2017 6
Complete tank &
terminal integrity
management
E
of clean petroleum products. It will be
ngie has renewed a regasification Cape Ann has previously provided
supported by four jetties with draft of up
and storage services contract with similar services to CNOOC, from
to 17.6 m capable of handling vessels up
China National Offshore Oil Corp. November 2013 to January 2017, as a
to 180 000 DWT. The terminal will also be
(CNOOC) for the coming winter contribution to both LNG and natural
connected via pipelines to the Jurong Island
season. gas supply needs, mainly during the
petroleum and petrochemical network,
The contract will be fulfilled by winter period associated with peak
thus providing significant efficiencies and
the FSRU GDF SUEZ Cape Ann in the demand.
benefits for its customers. The construction
port of Tianjin. Cape Ann will transfer LNG into
of Jurong Port Tank Terminals started in
The FSRU arrived in Tianjin fully smaller onshore tanks which are used
May 2017 and is on track to be completed
loaded with LNG and started by CNOOC for LNG trucking activity,
by 2019.
operations on 28 October. It will in addition to the usual FSRU
remain in the port until spring 2018. activities.
Winter 2017 8
THE LOADING ARM MANUFACTURER
40 YEARS FIELD-PROVEN EXPERIENCE AND ONGOING PRODUCT DEVELOPMENT
VISIT US AT
MYANMAR OIL
GAS & POWER, YANGON
January 25 - 26
STOCEXPO EUROPE
ROTTERDAM
March 20 - 22
NISTM ORLANDO
March 27-28
ILTA, HOUSTON
June 11 - 13
12 - 14 December 2017
Turbomachinery & Pump Symposia
A subsidiary of Savage Companies
will commence operations of its
new petroleum transload terminal in
trucks. Following permitting
approvals, Savage plans to add tank
storage and fixed facilities for
Houston, Texas, USA central Mexico on 1 January 2018, with high-speed rail unloading, product
tps.tamu.edu plans to significantly expand terminal blending and truck loading. At full
capabilities later next year. build out, the terminal will handle
11 - 13 March 2018 The terminal is served by the unit train volumes.
AFPM Annual Meeting
Kansas City Southern de Mexico “We’re excited to leverage our
New Orleans, Louisiana, USA
www.afpm.org/conferences
railroad and provides access to team’s experience operating transload
strategic ports and US-based refinery facilities and rail operations to reduce
13 - 15 March 2018 centres. the logistics costs of moving and
Asia Turbomachinery & Pump Symposium Initially, the terminal will serve managing refined petroleum products
Singapore manifest rail volumes, transferring in Mexico,” said Kirk Aubry, Savage
atps.tamu.edu products directly from railcars into President and CEO.
20 - 22 March 2018
StocExpo Europe
Rotterdam, the Netherlands Europe | PRISMA expands storage services
www.stocexpoeurope.com
27 - 29 March 2018
NISTM 20th Annual International Aboveground
P RISMA has confirmed its
commitment to offering services
to storage operators, following a
the Energy Union (EU), we confirm
our strong commitment to promote
the integration of the energy markets.
Storage Tank Conference & Trade Show
Orlando, Florida, USA
successful 10 month market pilot this We are extending our services to
www.nistm.org
year and positive feedback from the facilitate an easy access to gas
market. The consultation, held by infrastructures for market
17 - 18 April 2018 PRISMA and its shareholders, showed participants, in the interest of EU final
StocExpo Middle East Africa strong support for the initiative from customers.”
Dubai, UAE both the market and storage Götz Lincke, Managing Director of
www.stocexpomiddleeastafrica.com operators. PRISMA, said: “We are convinced that
The company will now consider our existing and future services for
22 - 25 May 2018 increasing the scope of proposed storage operators will help to increase
AFPM Reliability & Maintenance Conference and services, based on requests of both efficiency and transparency in the
Exhibition storage operators and the market. market. I am excited that we are
San Antonio, Texas, USA Gaetano Mazzitelli, Chairman of already receiving great feedback that
www.afpm.org/conferences
PRISMA, said: “In the perspective of will help us extend the new services.”
11 - 13 June 2018
ILTA International Operating Conference & Trade
Show
Houston, Texas, USA CB&I and Saipem win Duqm Refinery
Oman |
www.ilta.org/AOCTS contract
17 - 20 September 2018
Gastech 2018
Barcelona, Spain D uqm Refinery and Petrochemicals
Industries Co. LLC (DRPIC) has
awarded a consortium between CB&I
Duqm Port, a crude tank farm at
Ras Markaz, as well as an 80 km
crude oil pipeline. CB&I will be
www.gastechevent.com
and Saipem S.p.A. a contract for EPC performing all of the EPC works for
26 - 27 September 2018 Package 3 for the Duqm Refinery storage tanks at the export terminal
Tank Storage Asia project. and crude tank farm. Meanwhile,
Singapore The consortium’s scope of work Saipem will perform the balance of
www.tankstorageasia.com encompasses the engineering, the works. CB&I’s portion of the
procurement and construction (EPC) contract is valued at approximately
of a product export terminal at US$140 million.
Winter 2017 10
VERSATILE.
Always a leading innovator, ROSEN not only supplies pipeline
customers with the latest diagnostic and system integrity
technologies but also offers flexible solutions and all-round
support for plants & terminals.
www.rosen-group.com
Storage and terminal opportunities abound in MENA,
thanks to both strife and increased production.
Gordon Cope, Contributing Editor, explains.
Winter 2017 12
T
he Middle East and North Africa (MENA) are two of the largest
oil and gas producing regions in the world. They are also two
of the most contentious areas, with wars, internal conflict and
discord affecting both civil society and hydrocarbon output.
Despite this, the MENA region also holds tremendous potential,
which is being unlocked as rising production in North America obliges
governments to refocus their energy strategies. Those plans inevitably
create opportunities for storage and terminals in the region.
Saudi Arabia
Saudi Arabia is the elephant in the MENA menagerie. The kingdom has
261 billion bbls in proven reserves, produces 10.5 million bpd and exports
7.6 million bpd.
Over the last several decades, Saudi Arabia has acted as the swing
producer in OPEC, reducing production to increase prices and letting the
taps flow when it seeks greater market share. However, the country has
lost some of its clout. The 2014 OPEC gambit, flooding the international
market to put pressure on shale oil producers, is largely seen as a failure.
US operators proved more resilient to market forces and managed to
maintain record levels of production. Meanwhile, OPEC members have
seen cash reserves dwindle. The latest strategy, initiated in 2017, is to
reduce OPEC production by 1.8 million bpd in an attempt to stabilise
prices in the US$50 – 60 range. Saudi Arabia has taken the lead, cutting
almost 1 million bpd in exports.
It is diversifying its energy mix. The kingdom has approximately
298 trillion ft3 of proven gas reserves. Saudi Aramco (which produces
9 billion ft3/d in associated gas) is spending US$4 billion to increase
supplies to domestic industrial consumers. It has called for bids to build
new gas booster compressor stations at the Haradh and Hawiyah gas
plants. The two phase project, which will see gas output rise to
12.5 billion ft3/d, will also require a 40% increase in in-country storage
and transportation infrastructure to handle the increased volumes.
The kingdom has plans to almost double production to 23 billion ft3/d
by the end of next decade.
Kuwait skyline.
1
13 Winter 2017
Kuwait and Oman a blockade by a military faction since 2014. It was extensively
Kuwait has proven reserves of 104 billion bbls. It produced damaged by attacks from Isil but was reopened in late 2016
over 2.7 million bpd in 2016, of which 2.2 million bpd were following major repairs to tanks and other infrastructure that
exported as either crude or refined products. Meanwhile, were needed before tankers could load. Its capacity remains
Oman has 5 billion bbls of proven reserves and produces far below its pre-conflict level of 350 000 bpd.
almost 1 million bpd, of which 80% is exported as crude.
Kuwait’s state-owned Kuwait Petroleum Corp. teamed up Algeria
with its counterpart Oman Oil Co. to create a joint venture Algeria has 144 trillion ft3 of proven gas reserves, and produced
(JV), Duqm Refinery & Petrochemical Industries Co. (DRPIC). 7.2 billion ft3/d in 2015, roughly half of which was exported via
DRPIC is building a 230 000 bpd refinery and petrochemical pipeline and LNG. It also has 12 billion bbls of oil reserves and
complex in the Duqm Special Economic Zone (SEZAD), produced 1.37 million bpd in 2015.
located in Oman on the shore of the Arabian Sea. However, the North African country has much greater
The JV recently awarded several major EPC contracts that potential. A decade ago, gas production stood at
cover the construction of an offsite export terminal at 7.9 billon ft3/d, and oil production at 2 million bpd. Unlike
Duqm port, as well as a crude oil pipeline and a tank farm to some of its neighbours, the drop has not been due to internal
a consortium led by Saipem S.p.A. The contract portion for strife, but due to relatively little international investment. The
the terminal and tank farm is estimated at US$140 million government has been criticised for setting onerous contract
(the entire complex is expected to cost over US$3 billion). rights and delaying projects.
DRPIC has not set a date for the commissioning of the Observers are cautiously optimistic that, in light of falling
project. production and income (Algeria’s energy revenues fell from
US$60 billion in 2014 to US$27 billion in 2016), changes may
Qatar be in the offing. In late 2017, the newly-appointed Sonatrach
Qatar has 25 billion bbls of crude reserves and almost CEO, Abdelmoumen Ould Kaddour, announced that the
800 trillion ft3 of gas reserves. It produces 1.5 million bpd of national oil company’s (NOC) board was in discussions with
crude and condensates, and exports over 90% as crude and the Algerian government to reform oil and gas legislation
refined products. and taxation policies in order to attract more foreign
Qatar is also the world’s largest producer of LNG. It investment. “I want a strategy for Sonatrach, it never had a
exported the equivalent of 9.3 billion ft3/d in 2015, strategy before,” he noted. “I will publish shortly what I
approximately one-third of global LNG shipments. After a called ‘Sonatrach 2030’, a plan that will show the way for the
hiatus in new LNG construction, the country announced that next decade.”
it would once again boost output by approximately 30% over Prior to Kaddour’s appointment, Sonatrach also announced
the next five to seven years. The expansion will require that it had signed a deal with Total. The NOC commissioned
extensive new storage and docking capacity at its main export the French oil company to complete a feasibility study
terminal, located in Ras Laffan port, the world’s largest regarding the building of a major petrochemical facility in
artificial harbour and LNG export terminal. Algeria. Should the JV go ahead, the project would require
In mid-2017, Saudi Arabia, Bahrain, Egypt and the UAE cut significant storage and transportation infrastructure.
diplomatic ties with Qatar and severed transport links to the
peninsula. The dispute centres around Qatar’s backing of the UAE
Muslim Brotherhood and the operation of its Al Jazeera TV The UAE holds 98 billion bbls in crude reserves and
network. While the group has openly called for regime change 192 trillion ft3 of proven gas reserves. Since 2015, production
in Qatar, so far, little other than trade has been disrupted, and capacity has risen from 2.8 million bpd to 3 million bpd, and
there is no suggestion of interrupting hydrocarbon exports. the OPEC member has plans to achieve 3.5 million bpd
capacity in 2018.
Libya Much of the increased capacity will not be through the
Libya has over 48 billion bbls in crude reserves. Prior to the development of new fields. Rather, it will be through
civil war that engulfed the country in 2011, Libya was a major enhanced oil recovery (EOR). The UAE produces over
producer and exporter of oil. Production averaged 5 billion ft3/d of gas (primarily associated), but re-injects the
1.7 million bpd in 2010, with exports averaging approximately majority in order to maintain oilfield pressure. Regardless, a
1.4 million bpd. 25% expansion in capacity will require commensurate export
After the overthrow of the Gaddafi regime, various storage and infrastructure expansions.
factions formed transitional governments in both the capital
of Tripoli and the major producing regions to the east of the Iran
country. Oil and gas assets, including fields, terminals and tank Iran contains a wealth of hydrocarbon riches. It has
farms, became prime targets, and Libya’s production fell to 158 billion bbls of proven crude reserves and 1000 trillion ft3
approximately 400 000 bpd in 2015. of gas. In 2010, it produced 4 million bpd. Led by the
Since then, production has recovered, with Libyan United Nations (UN), a series of sanctions were imposed
authorities reporting production exceeding 1 million bpd in upon Iran in order to curb its nuclear programme. As a result,
mid-2017. Because the country’s oil and gas sector is subject production had dropped to below 3 million bpd by 2015. In
to disruptions and protests, exports can fluctuate wildly. 2016, sanctions were eased, allowing production to rise back
Es Sider, Libya’s biggest export terminal, had been shut due to up to approximately 4 million bpd.
Winter 2017 14
The surge in production coincided with a worldwide glut. production and exports. The diplomatic isolation of Qatar by
The National Iranian Oil Co. (NIOC), which has insufficient its neighbours faces significant obstacles to resolution.
in-country crude storage, was holding almost 30 million bbls
at sea in several dozen tankers. Starting in early January 2017, Long-term outlook
when it was exempted from the OPEC output deal to cut In the longer term, MENA must deal with the surge of exports
production, NIOC has managed to reduce this amount by from North America. Thanks to the shale revolution, the US
more than half through aggressive discounts and courting new now exports over 1.5 million bpd of crude, propane and
markets. gasoline. The Sabine Pass LNG facility in Louisiana, US, which
In 2017, Iran completed construction of a terminal near came onstream in 2016, is looking to expand its export
Kharg Island in the Gulf in order to export a new grade, capacity to 9.2 billion ft3/d by 2021. Canada is also seeking
West Kharoon, which is similar to Iraq’s Basra heavy crude, but tidewater terminals in order to market its ever-growing
with higher sulfur content. The new facility has added oilsands production into Europe and Asia. After the last three
300 000 bpd in export capacity. years of low commodity prices, many MENA countries are
After participating in the original offshore South Pars gas scrambling to diversify their economies away from oil, but,
field development with Iran, Total has announced that it will ultimately, their greatest concern may be hanging on to what
participate in phase two of the project (South Pars is the they have now.
Iranian portion of a giant gas deposit
known as the North Field in Qatar). Phase
two will cost Total up to US$5 billion. The
new production will be used for domestic
consumption, requiring extensive storage
and transportation infrastructure within
the country.
Iraq
Iraq contains 143 billion bbls of proven
crude reserves and 100 trillion ft3 of
proven gas. The country has suffered a
tumultuous half-century in which oil
production has been derailed by wars
against Iran, the US and its allies, and,
most recently, against Isil. By 2017,
however, its output has returned to above
4.5 million bpd, and the country has plans
to reach 5 million bpd in 2018 through
further development of its Halfaya
oilfield in the Maysan province.
As part of its plan to increase exports,
Iraq has been busy increasing the capacity
of its southern offshore export terminal
at Khor al-Amaya. The terminal, which has
a capacity of 600 000 bpd, is undergoing
storage and infrastructure augmentation
to double capacity. Dredging will also
• Early Warning Oil
allow Suezmax vessels (tankers that can Detection
carry up to 1 million bbls of crude) to
dock. Thanks to additional capacity
increases in the Basra offshore terminal, • Non-Contact Sensor
Iraq has exceeded 3.5 million bpd in
exports in 2017. • Single Event Payback
The future • Real-time Monitoring
The MENA region faces several
challenges. While Isil’s armed uprising in for Dikes, Roof Drains,
Iraq, which saw the seizure of major oil
producing regions, has largely been Sumps, Separators &
resolved, the country still must address
the complications of Kurdish
Outfalls
independence. In Libya, militias and other
armed groups continue to disrupt oil
Winter 2017 16
O
il terminal wharf pipelines are often considered much smaller field for consideration. The objective of a
‘unpiggable’. This can be due to a range of factors, pre-inspection site visit is to gather all of the available
including operating pressure limitations or due to information, including operational constraints and
the fact that the pipeline was not designed for preferences, so that a safe, efficient and cost-effective
intelligent pigging and may have features such as short radius cleaning and inspection procedure can be developed.
bends, a lack of a pig launcher or receiver, diameter changes Experience has shown that the small upfront investment of
or various other challenges. While new technologies now performing a preparatory site visit can achieve significant
allow previously unpiggable wharf pipelines to be accurately cost savings through the reduction or elimination of pipeline
and quickly inspected, there are still many challenges that modifications, pipeline downtime and the equipment that is
arise due to operational constraints. necessary to support the inspection.
When preparing for the inspection of a wharf pipeline, it A variety of solutions are available to address problems
is important to first understand all of the possible inspection relating to pipeline modifications and equipment
methods as well as all of the associated challenges. In simple requirements. Some examples include: using flexible hoses to
cases it may be possible to accomplish this by conducting create looped pipeline systems, adjusting tool bypass to suit
preliminary discussions and collecting vital information, flow conditions, or launching or receiving the ILI tool from a
including drawings and historical pipeline data. More spool piece between valves. In order to determine which
complex projects, however, are typically characterised by a specific methods are appropriate, it is imperative that a site
lack of information and understanding of the inspection visit is performed by an expert with specific knowledge of all
methods available. In these situations, it is recommended operating requirements and available technologies.
that an experienced project manager conducts a site visit in This article discusses the inspection planning and site
the early stages of project planning. visit process for wharf pipelines, as well as the methods used
Commonly available in-line inspection (ILI) tools are to mitigate unnecessary inspection project expenditures.
often unsuitable for inspecting wharf pipelines, leaving a Case studies are presented to illustrate these methods.
1
17 Winter 2017
These features limit the accuracy of ILI tools
that are based on MFL technology.
Fortunately, the introduction of new
technologies is changing the playing field as
they can cope with challenging operating
conditions, such as the navigation of tight and
mitered bends in low pressure conditions, and
they often eliminate the need for pipeline
modification.
Concurrently, oil terminal operators are
now facing new rules, regulations, safety and
environmental concerns. For instance, a
notable amendment of AS/NZ 2885.3 for
Australia and New Zealand was implemented
in 2012. This revision recommended that as
part of any pipeline integrity management
Figure 1. A pipeline modification used to inspect the pipeline plan, the pipeline operator should consider use
effectively. of ILI where practicable. This change has
encouraged pipeline operators to assess all
options, including modifications to perform an
ILI, thus causing them to rely on ECDA, ICDA and/or
hydrotesting as a last resort method.
In other regions, several well-publicised incidents have
forced operators to focus on the inspection of wharf pipelines
that have previously been neglected from an ILI perspective.
This combination of circumstances has made it both necessary
and possible to inspect the large number of wharf pipelines that
had previously been considered unpiggable.
For the oil terminal operator, this is both an opportunity
and a dilemma. When preparing for a wharf pipeline ILI, the ILI
tool selection process now involves supplying highly specific
information about the pipeline; comparing vendor qualifications
and data quality, and potentially making costly modifications to
the pipeline prior to inspection. The implication of this process
is also financially salient as the total cost of a project can vary
Figure 2. A real world application of the pipeline considerably from one inspection technology to the next.
modification design in Figure 1, allowing for future The total cost of the project can include:
installation of an ILI receiver. Permanent or temporary pipeline modifications.
Rental of equipment, such as pumps, compressors, lifting
equipment and frac tanks.
Traditionally, only ‘piggable’ pipelines have been inspected Providing and disposing of the inspection medium.
with ILI tools. The majority of these tools have been based on The manpower needed to support the project.
magnetic flux leakage (MFL) technology. Inspections performed The cost of downtime.
with these tools typically require:
A lengthy launcher and receiver. These factors vary in their contribution, depending on the
Pipeline cleaning. method and supplier of the chosen ILI service. The selection
A gauging pig run with gauge plate at 90 or 95% of a process has become significantly more difficult and
pipeline’s inside diameter. complicated. The complexities of selecting an inspection
A caliper tool run. technology for wharf pipelines are illustrated in the following
Lifting equipment for the ILI tool. case studies.
Flow parameters (minimum pressure and flow rate) that
may be difficult to manage in certain pipelines. Case study one
In this case, an inspection was performed on a 14 in., 1 mile long
Many wharf pipelines, however, are not readily piggable wharf pipeline. The pipeline, used to transport white oil, had
with traditional ILI tools for various reasons, including operating been constructed in 1985 and had not been pigged since it was
pressure limitations or that the system was not designed for ILI. commissioned. No traps were present, but a launch valve was
Most wharf lines have extra metal features, such as pipe still in place. The pipeline ran from a wharf to a tank farm. The
supports, clamps and sleeves. Damage to the coating is often launch location could be accessed through two manways. The
observed, especially at weld locations, which increases the first launch location was for personnel access. The second
chance of external corrosion in the heat affected zone (HAZ). launch location was located directly above the launch valve and
Winter 2017 18
could be used to lower a small launcher underneath the berth.
At the receiver side, there was no mainline valve present, only a
flange to connect to. The maximum pressure allowed was
150 psi. Due to an ever-changing shipping schedule, scheduling
flexibility from the ILI supplier was required. The pipeline was
normally operated by a third-party operator and the owner had
no pipeline pigging experience.
An initial site visit was performed prior to inspection. During
the visit, various inspection options were discussed with both
the owner and the third-party operator. A procedure was
developed, outlining the roles, responsibilities and materials for
each associated party. It was determined that receiver
modification was required to allow for future repeat inspection.
This modification would easily allow for the installation of any Figure 3. A three-way valve requiring logistical
suitable ILI receiver without a need to drain the pipeline. A consideration prior to inspection.
drawing for the modification was provided in the procedure
(Figure 1).
The week before the ILI inspection, the pipeline owner
modified the pipeline and installed the receiver (Figure 2). The
launcher was installed using a small crane that was mounted on
a truck. Five cleaning runs were completed across one afternoon
and the following morning. The pipeline contained a reasonable
amount of sediment, which had been brought in by the ships
when offloading diesel. The ILI run was completed successfully,
with all of the cleaning and ILI pig runs carried out using a
firewater supply for propulsion. The project was completed
within 2.5 days on-site, without any incidents or spills. Figure 4. Two 8 in. dock hoses that are used to loop
the pipelines together for inspection, providing
Analysis significant cost savings by avoiding the need to
The ILI vendor in this case was selected based on its cost and fabricate a spool.
project management capabilities. A standard ILI tool could have
been used, but would have required large pig traps. Installation
of large pig traps would have required a small barge, with a great During a site visit, all viable inspection options were
deal of scaffolding under the wharf. At the receiver side, the considered. The solution was to use a dock hose, which was
client had been contemplating excavating a small part of a hill normally used to offload ships and connect the two pipelines at
to make room for a large trap. However, these factors would the dock (Figure 4). This method would further reduce the total
increase the overall cost and would have also increased the risk work scope for the client.
of an accident or spill due to the increased amount of work in a Within 4 hrs, the two pipelines were cleaned, inspected and
confined space and the heavy lifting involved. handed back to the client.
During the site visit, the project manager was able to
identify several options for the client, which allowed the Analysis
operator to select the most convenient overall solution. One During the site visit, a method was devised to reduce the total
cost saving element was the use of a dock hose as the bypass work load for the client. The ILI was performed in a very short
line. The dock hose was readily available and could be used on time frame.
any trap, from either the current and/or future ILI supplier. The inspection allowed for minimal dock occupation time,
Utilising the capabilities of all involved parties and locally which made scheduling on a shared dock easier. Two pipelines
available resources, the inspection was executed on time and were inspected with minimal work at the shared dock. The
without incident. installation of pig traps could also be performed within the
client’s terminal, which simplified and minimised the work and
Case study two risk involved.
This inspection consisted of two parallel 8 in., 4000 ft loading
lines running from a dock to a tank terminal. One line included a Conclusion
three-way valve (Figure 3). These lines were used for the When inspecting wharf pipelines that historically would not
offloading of various fuel products to the tank farm. The owner have been inspected or considered piggable, it is imperative for
operated several tank farms, but had not previously inspected an ILI provider with wharf line inspection experience to perform
either of these loading lines. Its initial idea was to inspect each a site visit. Developers of new ILI tools are able to provide the
line individually, with a launcher and receiver at both ends and best knowledge on potential operational improvements for an
using water as the inspection medium. As this option would inspection. By utilising the ILI provider as a consultant and
require the use of frac tanks on the dock, a site visit was project manager in this way, it is possible to realise substantial
organised to explore better options for the client. overall cost savings and risk reduction.
19 Winter 2017
Figure 1. Jetties allow tankers to load and unload crude
oil, feedstock and finished products close to a refinery.
The maze of pipes is subject to corrosion.
Winter 2017 20
M
any refineries and oil terminals are located
beside major stretches of water, either sea
or river, to provide a cost-effective
transportation route for incoming crude oil
and feedstock, and for outgoing finished products.
Ships and barges need a certain amount of water depth
to be able to safely load and unload product without
the danger of running aground, so most facilities use
jetties (Figure 1) to enable the vessel to moor in deeper
water away from the shore.
2
21 Winter 2017
If undetected, a hydrocarbon leak resulting from
corrosion in a jetty line will go straight into the water
course, interrupt jetty operations while the leak is
sealed, and necessitate complex oil spill response
procedures to clean up the water. Many jetties suspend
pipes underneath to allow vehicle traffic above, making
regular manual inspection and maintenance difficult.
To reduce the risk of leaks from corrosion, and to
avoid the associated costs and regulatory issues, most
jetty owners will regularly inspect suspended pipelines
from a boat or by a suspended scaffold, mainly using
manual methods such as ultrasound wall thickness
inspection (Figure 2).
In many jurisdictions, this regular inspection activity
is mandated by the local environmental regulator.
Figure 2. Suspended pipelines are difficult to inspect Access to the pipelines by boat is not always possible
with manual ultrasonic methods, requiring access by – for example, during bad weather – and incurs a
boat or a ladder. regular cost that, in today’s tight margin environment,
operators would rather avoid.
Winter 2017 22
CONCEPT TO COMPLETION.
IT ALL BEGINS WITH MATRIX.
From world-class
engineering to large-scale
construction, we provide EPC
services, fabrication, repairs,
modifications and upgrades for LNG,
cryogenic and low-temperature tanks
and terminals across the gas value chain.
Winter 2017 24
Peter Williams, Concord Tank, USA,
outlines why floating roof repairs should
be approached differently to floor repairs.
A
fter a series of issues in 2015, Concord Tank realised more common. This article aims to present experiences that
that it had been making some poor approaches to its can be learned from in order to avoid facing the same issues in
floating roof repair work, and needed to adapt. After future projects.
digging deeper into the problem, the company
determined that it needed to change its perspective on floating A case study
roof repair projects. This article will examine how common A 100 ft dia. tank with a steel perimeter pontoon external
mistakes can lead to sinking floating roofs. floating roof had been covered with a geodesic dome decades
Most of the issues uncovered are not specific to Concord ago. During the conversion, the floating roof drain and sump
Tank, but are common practices across the tank storage had been removed. After years of service, the geodesic dome
industry. As the average floating roof age continues to was now allowing water to get inside the tank and sit on the
increase, the problems encountered are likely to become deck of the floating roof. The roof had not been recoated
2
25 Winter 2017
The engineer felt that the inspection crew should have
given clearer guidance on the required repairs. The repair crew
should have more clearly identified and communicated
concerns about the condition of the roof. The blasting
contractor should have identified the areas and welds with
serious concerns after blasting, and the on-site inspector
should have seen these issues as well. The above constraints
made managing the project extremely difficult.
Patterns emerge
Upon reviewing both this project and past projects that had
faced issues, the following patterns were noticed:
Figure 1. External floating roof with rolling ladder. Floating roof repair scopes are often significantly less
detailed than the work scopes of floor and shell repair
projects.
during the last out of service repairs and had widespread areas Engineers and project coordinators often could not provide
of coating failure. more detailed work scopes due to the low quality of
The job scope given to Concord Tank by the customer information provided to them by inspection companies.
mentioned that there were areas of corrosion on the roof that Testing floating roofs has a unique combination of
challenges that make it easy for repair crews and inspectors
should be patched. The company expressed concern that the
to miss problems.
size and location of the repairs had not been marked by the
Whether consciously or subconsciously, all parties involved
inspection company. Meanwhile, the inspection company said
often treat floating roofs with less respect than other areas
that it would need to have the roof sandblasted in order to of the tank.
conduct a more detailed inspection. Often engineers and tank inspectors do not have clear
Concord Tank cleaned up both the roof and some of the guidelines to follow when trying to identify potential issues
areas with paint failure. Following this, the client’s engineer with floating roofs.
inspected the roof, marked out areas to repair and decided that Each engineer and co-ordinator approaches floating roofs
further inspection would not be needed if they sandblasted and differently. There appears to be few clear standard
applied a liner on the top side of the roof to protect from practices in the industry.
future corrosion. The budget and time constraints, combined with the
After the weld repairs were completed, the owner had the factors above, often lead to potentially substandard
roof blasted and coated. The facility scheduled receipts to fill repairs.
the tank and pin legs after the tank had been returned to
service. When setting up, the leg pinning crew observed that the The core reason
coating appeared to have an issue on the centre deck. Upon The patterns above can be traced back to how the American
closer observation, it was determined that product was coming Petroleum Institute (API) standards are written and structured.
up through a hole in the floating roof deck. When the tank was The standards try to avoid being overly prescriptive. If a roof
pulled out of service, the leak path was not easily identifiable. fails, the product does not spill into the environment like it
Therefore, the tank had to be removed from service and would with a floor or shell failure, so appropriately it has fewer
re-cleaned, adding tens of thousands of dollars of extra cost to guidelines on floating roofs. This means that in place of the
the project. Additionally, the customer still had a roof that clear construction, inspection and repair guidelines, the
needed to be inspected and repaired. This was a clear project standards have limited guidelines for floating roofs.
failure. For example, in API 653, the ‘suitability for service’ section
has four and a half pages of guidelines on tank floors, while only
Whose fault was it? one-quarter of a page of guidelines is dedicated to floating
This example illustrates many of the problems associated with roofs. In the repairs section of the standard, there are five pages
floating roof repair work. The most dangerous issue is that it was of guidelines for floors and, again, only one-quarter of a page of
easy for each party involved to place the blame elsewhere. guidelines for floating roofs.
From Concord Tank’s perspective, it expressed concern Concord Tank believes that API standard committees are
about the poor work scope multiple times during the project. correct in being careful about being overly prescriptive.
When it heard about the failure, the first response from both However, its current standards do seem to create two situations
the company’s foreman and project manager was to point out that are leading to problems in the field. Firstly, inspectors,
the concerns they had. engineers and repair contractors have fewer constraints, which
The inspection company explained that it could not means that they have greater responsibility and liability when
properly inspect a dirty floating roof with widespread coating determining what needs to be repaired on the floating roof.
failure, while the blasting and coating contractor had expressed Secondly, the reduced requirements reinforce the idea that
concern about the possibility of creating additional issues when floating roof repairs are not as critical as floor and shell repairs.
blasting a roof like this. These two issues create a situation where everyone tries to
The tank owner was frustrated as project costs were pass on the liability. This dynamic often leaves companies in a
skyrocketing and the tank was still out of service. bad situation.
Winter 2017 26
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company, a red flag area is one where the field foreman or
project manager is expected to hold their ground until
100% comfortable that all issues have been clearly
communicated and addressed.
Better floating roof repair practices are needed. Visual
inspections need to be treated with more respect and care.
Standards should recognise when diesel tests should be
held longer or were ineffective. Vacuum box welds should
be used more often, and the industry should avoid relying
too heavily on one inspection method.
Companies should communicate red flag issues. Helping
Figure 2. Floating roof patch plate repair. the engineer to see the underlying issue can help bring
about problem solving. Without acknowledging these
issues, blame shifting to the engineer or inspector occurs,
which is not a constructive perspective when trying to find
an adequate solution.
Conclusion
The industry’s tank inspection and repair standards provide
relatively few guidelines on the inspection and repair of floating
roofs. This decision by code committees to be less prescriptive
Figure 3. Floating roof drain sump. on floating roofs puts more responsibility on the owners,
inspectors and repair contractors. These parties often look to
A new approach shift this additional responsibility to each other. When no one
Based on the above, Concord Tank has identified three core takes full ownership of the problem, substandard repairs can
elements that needed to change in floating roof repair projects: occur, which can, in turn, lead to floating roof failures and costly
Acknowledge that floating roofs are currently a problem unexpected tank outages. Concord Tank’s solution in this
area. In the past, the repair company tended to avoid scenario has been to red flag floating roof repairs and treat
friction and take on additional responsibility. For the them with additional respect and care.
Pretty close
to perfection.
A
n increased focus on the environment and pressure has been demonstrated by numerous high profile tank farm
on profitability has encouraged the use of internal incidents around the world.
floating roofs (IFRs) in fixed roof tanks in the terminals The most volatile elements in flammable liquids are the
industry. ones that are most likely to evaporate first. Loss of these light
Highly volatile products, such as gasoline or gas condensate, ends, such as butanes, result in reduced product quality. This
have vapour pressures greater than the design pressure of most could lead to rejected deliveries, damaged reputations and legal
atmospheric storage tanks (ASTs) at ambient temperatures. action.
Therefore, the use of pressure/vacuum vents set to the IFRs are specified in preference to normal venting because
maximum allowable working pressure (MAWP) of the tank will they significantly reduce vapour loss and protect profitability,
not stop the majority of the vapours escaping the tank. This the environment and assets.
results in large quantities of hazardous volatile organic
compounds (VOCs) leaking into the atmosphere. History
These vapour clouds affect profitability and the impact on IFR technology dates back to the 1950s and has evolved in line
the health of people, animals, birds and plant life in the vicinity with the demands of customers and to keep abreast of
of the tank farm. They also present a significant fire hazard, as legislation. Tank inspections are now routinely performed in
2
29 Winter 2017
It is worth noting that the integrity of construction of these
components must be to a very high level to prevent the leakage
of vapours and damage from turbulence in the tank.
This design relies entirely on flotation of the pontoons,
leaving a small gap between the surface of the liquid and deck
skin. Where the full vapour pressure cannot be contained by a
normal AST, the IFR structure can, leaving the ullage space
unpressurised and freely ventilated.
The small vapour space between liquid surface and IFR skin
equalises in pressure, which can leak through the deck seam and
appurtenances such as the rim seal, stilling well seals, dip
funnels and manways, etc.
Winter 2017 30
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The rigidity of the frame, legs and pontoons is critical to the
long-term integrity of the structure. High flow rates into the
tank and mixers will cause turbulence, creating shear forces on
the pontoons and legs. It is vital that these side loads are
transferred directly to the framework through rigid support
brackets. Legs connected to the pontoons on some lower
specification IFRs have caused stress fracturing. This results in
the rupture of the pontoon and can lead to sinking of the IFR.
Again, an avoidable issue if a robust specification and selection
is completed.
Winter 2017 32
Many IFRs are bought purely on price to replace old units or listed above. Potential bidders should provide a detailed
buyers have been asked to follow company guidelines on proposal, listing every aspect of the IFR, including a method
new build projects that have no defined specification for IFRs. It statement on the installation.
is also a fact that cheap IFRs exist in the market place and high
leak rates do not get detected until the tank is opened for Conclusion
inspection after approximately 10 – 15 years. The unlucky ones Most tank farm operators earn their living from utilisation of
suffer an IFR failure and have to deal with the consequences of tank storage capacity, so serious attention to risk assessment of
unplanned outages and the subsequent loss of revenue. the purchase and installation of IFRs is a worthy exercise.
Detection of vapour loss is becoming easier for the Assentech hopes that this article will help purchasers to make
following reasons: clear and informed choices on these important items of
COMAH sites get monitored more frequently for emissions equipment, with peace of mind for now and the long-term
violations. future.
Increased levels of
work-related injury claims
could relate to long-term
exposure to dangerous
substances such as benzene.
General pressure on
profitability forces operators
to analyse product losses.
Increasing product sampling
prior to delivery could cause
rejected loads if the product is
off-specification.
EXPANDING
Such programs can estimate
vapour losses with a range of tank
options from free vented through
HORIZONS
skin and pontoon type to full
contact type IFRs. Some
manufacturers have adjusted
source database in some
applications to reflect their own
After completing the NACE CP course,
variations on IFR technology. This is I have a better understanding of cathodic
a useful tool as it gives a closer SURWHFWLRQV\VWHPVRQRƬVKRUHSODWIRUPV,oYH
used this information to assist me in deciding on
estimate of emission losses for a inspection frequency during a mini-project as
specific technology, such as WKH&3IRFDOSRLQW7KH1$&(&,3FRXUVHKHOSV
me as the coating focal point at Sarawak Asset
stainless steel shoe seal vs in determining and specifying required surface
polyurethane (PU) wiper seal over SUHSDUDWLRQDQGSDLQWDSSOLFDWLRQ
choices.
Installation
Buying an IFR is only part of the
story; it also has to be installed.
The team that performs the
installation will impact the
effectiveness and life span of the NACE Career Development, your experts
LQWUDLQLQJDQGFHUWLƮFDWLRQ
IFR, so it is wise to obtain
Developed by Industry,
references.
Each IFR is a bespoke design
relating to a particular tank size.
Assentech strongly recommends Globally Recognized.
that operators have a site
specification for IFRs that
incorporates all of the features
nace.org/career-development
Julian Waumsley, Aquilar Ltd, UK, outlines
the importance of quickly detecting leaks
in hydrocarbon storage facilities.
Winter 2017 34
S
pillages and leaks of hydrocarbon fuels within a Installing an efficient liquid hydrocarbon leak
storage facility can, at best, involve costly detection system is an important and necessary
clean-up operations and, at worst, result in large precaution that can help limit potential safety hazards,
scale environmental damage, highly dangerous damage and the costs associated with leaks and spills.
combustion risks and legal liability, all of which have Although these detection systems do not prevent leaks
additional repercussions in terms of the facility’s themselves, they alert staff to a leak almost as soon as
reputation. Whether it be jet fuel, gasoline, diesel, it occurs and can accurately pin-point its location so
crude oil or contaminated water, even a small leak can that corrective action can be taken as quickly as
cause significant damage if allowed to continue over a possible.
prolonged period of time. A good example of this can
be found within ageing tanks, where leaks from the Case study
floor plate allow product to slowly seep through a In a previous hydrocarbon leak detection project for a
corroded plate of a fractured weld, sometimes going small oil port, Aquilar found that the existing
undetected for months or even years. However, the supervisory control and data acquisition (SCADA) based
risks associated with undetected leaks are not limited leak detection system was ineffective. This was due to
to storage facilities. They are also of significant the fact that this system relies on predictable, constant
concern when transporting or processing hydrocarbon flow rates, but the unloading operation in this scenario
fuels. In all of these scenarios, detecting and addressing was intermittent and across relatively short pipelines.
the issue quickly is paramount to preventing Consequently, even large leaks would have been able to
unnecessary damage and ensuring that repair/clean-up go completely undetected. This was of particular
costs and downtime are kept to an absolute minimum. concern to the client as the pipe system encroached
3
35 Winter 2017
on ecologically sensitive areas, meaning that even a TraceTek Fast Fuel Sensor (TT-FFS), shown in Figure 1.
small leak would compromise the company’s Figures 2 and 3 illustrate how TraceTek technology
environmental responsibility. works. Carbon particles are deposited in a thin film
Ordinarily, when dealing with hydrocarbon leak using a polymer base, represented by green lines in
detection in a storage facility environment, Aquilar Figure 2. Rather than using the carbon particles to
would advise the use of a sensing probe such as the create an electrical switch, this technology uses them
in this configuration to monitor the polymer status
through its electrical resistance.
Leaking liquid hydrocarbon molecules, represented
by the red lines in Figure 3, cause the polymer chains
to elongate (or swell) and carbon particles to pull
apart. After sufficient fuel (less than 1 ml) has been
absorbed into the polymer, micro-swelling occurs in
the polymer film at the point of contact. Resistance
through carbon particles increases dramatically. The
monitoring instrument detects the sudden increase in
polymer resistance and reports that a leak has been
detected.
The sensors are primarily attached to support
brackets or a float assembly within the low points of
tank bunds, bund sumps, within pump bays or adjacent
vapour recovery unit. The TT-FFS is a fast-acting
probe, designed to detect hydrocarbon fuel floating
on water, spreading on a flat surface or collecting in a
Figure 1. The TT-FFS detects liquid hydrocarbons in a dry or wet sump. The probe ignores water, but detects
few seconds.
a thin film of fuel floating on the surface. Reaction
time is typically a few seconds for light or middle
weight fuels, such as gasoline, jet fuel and diesel. It is
also responsive to crude oil, as well as some heavier
weight fuels and heating oils, but becomes
progressively slower as the fuel volatility decreases.
After detection, the sensor is easily reset and can be
re-used even after multiple detections of hydrocarbon
fuel leaks.
In this particular project, both above and below
ground piping applications needed to be taken into
consideration. TraceTek can be used for a single tank
or buried valve, or across entire terminals and storage
facilities that require many kilometres of buried and
aboveground pipes.
In aboveground storage tanks, for example, the
Figure 2. Low resistance in normal conditions. main consideration within the bund is detection of
any hydrocarbon liquid above ground from a breach in
the tank wall or failure around one of the side
connections (import/export pipes), access hatches or
flanged joint. Leakage from the elbow of an internal
rainwater pipe could allow product to flow directly
into the bund and cause an overfill. For this
application, the TraceTek TT5000 fuel sensor cable is
used to monitor the soil under and around fuel
carrying pipes and tanks (Figure 4). The sensing cable
can be attached to an aboveground pipe, buried in the
ground below a tank, or placed alongside a pipeline
with a perforated slotted conduit to detect
hydrocarbon fuels whilst ignoring water.
Therefore, having assessed the requirements of the
small oil port client, Aquilar suggested using this
Figure 3. High resistance in contact with liquid sensing cable for its ability to report the leak and its
hydrocarbons. location, typically to +/- 1 m, via the sensor’s
monitoring electronics. Tests have proven that it takes
Winter 2017 36
For the buried portion of the pipeline, the TT5000
was used again but was installed in a different way; a
slotted PVC conduit was placed in the pipe trench on
the same layer of sand that the single wall fuel
pipeline rests upon. After the heavy pipeline work was
completed, the sensor cable, with an over braid of
polyethylene rope, was drawn into the conduit system
whilst it was being assembled, prior to burial. The
slotted conduit provides mechanical protection to the
sensing cable whilst the slots allow any leaking liquid
hydrocarbon fuels to contact the sensing cable. The
conduit also allows the sensor to be pulled out after
an alarm has been triggered.
Conclusion
Various instrumentation options are available to
monitor leak detection cables. These range from
Figure 4. TraceTek TT5000 fuel sensing cable for simple battery-powered, high-intensity flashing LED
above and below ground applications. leak indicators (ATEX certified), to SIL-2 controllers and
standalone alarm panels with digital display and fully
integrated solutions for an existing SCADA system.
approximately one hour for the detection cable to Web-enabled solutions are also available for remote
initiate leak detection and trigger a leak alarm. viewing of status and alarms. In this case, all of the
For the aboveground piping, Aquilar supplied the sensing cables were monitored by a single TTDM-128
TT5000 sensing cable with an external black polyester alarm panel, which is capable of detecting multiple or
rope layer, which provides an effective ultraviolet (UV) spreading leaks, digitally locating them within 1 m. It
shield protection for the sensor cable within. The provides capacity for up to 127 circuits and 1500 m of
sensing cable was secured to the bottom side of the sensing cable per circuit, far exceeding any plans the
aboveground pipelines. client had for the future pipeline expansion.
• 20 storage tanks 80 miles East of New York Harbor • Total Storage Capacity of 5 Million Barrels
• The only deep-water loading/unloading platform on • Easy reloading for distribution of product to U.S.,
the U.S. East Coast. Canada and Europe
I
the damage and extent of the spill. All of this usually
n most industries that manufacture, use or store requires the installation of new or upgrading existing
chemicals and other hazardous liquids, a spill level instrumentation.
prevention, control, and counter measure (SPCC)
plan is required as part of the normal operation for Overfill prevention
storage vessels (Figure 1). For industries where SPCC The best solution for mitigating the damage and extent
plans are not mandated or required, it is best practice of spills is preventing them from happening in the first
to incorporate them into the standard procedures of place. Instrumentation exists to monitor the contents
3
39 Winter 2017
of the vessel and provide an alarm in the event of an
overfill event or leak. These products have been
used for years, and are well-established and reliable.
High level overfill prevention switches, such as
vibrating tuning forks (Figure 2), provide an alarm
when the material in the vessel reaches a
dangerously high condition. This switch is often
called a high-high level switch as it is mounted
above the high level switch that is used to indicate
the normal stop fill point of the tank. If the high
level switch fails, the high-high level switch prevents
the tank from overfilling. High-high level switches
should include a function test feature to ensure
integrity.
Because high-high level switches are mounted
Figure 1. Spill prevention in chemical storage tanks above the normal maximum fill point, they can be in
usually requires improved level instrumentation. service for years without activation from a high
level. Therefore, having an ability to test the switch
and verify functionality is critical. Testing these
switches on a regular basis to ensure their integrity
should be part of the SPCC plan. However, raising
the process to an unsafe level to test the switch is
not a good idea. It is also specifically disallowed
according to American Petroleum Institute (API) 2350
recommended practices for aboveground storage
tanks. Instead, this standard states that high-high
level switches must be tested on a regular basis
without raising the level to a dangerously high
condition.
Depending on the type of point level switch
being used, the only accepted method to ensure the
performance of the switch may be to remove it from
the vessel for testing. This is typically conducted in a
bucket test, where the switch is immersed in process
liquid to ensure that it works. Removing a switch for
Figure 2. A FTL81 high-high level switch mounted testing incurs costs due to downtime and lost
above the level switch detects the normal maximum production, and personnel must be available to
fill point. remove the switch, perform the test and reinstall the
switch.
The switch could be damaged during
reinstallation, and it may not work correctly once
reinstalled, negating the test. For these reasons, it is
better to use a point level switch that can be tested
in-situ (Figure 3).
Some plants rely on continuous level
technologies, such as free space radar, guided wave
radar or ultrasonic transmitters, for overfill
prevention. Their reasoning for this is that with a
continuous level measurement they would know if
something was wrong with the level instrument.
However, upset conditions in the process (such as
foam, condensation and build-up) can cause false
readings. For this and other reasons, recommended
best practices dictate that instruments used to
prevent accidental overfilling and spills should be
separate from the instruments used for gauging the
Figure 3. Testing a Model FTL81 level switch in-situ vessel level.
from the control room validates the functionality of
a high-high switch, while reducing maintenance and
There are a number of level switch technologies
downtime. for high-high overfill prevention applications,
including vibrating tuning forks, capacitance,
Winter 2017 40
ultrasonic gap switches, floats, etc. It is important to hydrocarbons and chemicals, it is important to
be certain that the technology selected for the include temperature compensation as part of the
high-high switch is appropriate for the application tank gauging instrumentation. This is required
and, as previously indicated, can provide a functional because the volume of many hydrocarbons and
in-situ integrity check to ensure it will operate in an chemicals expands or contracts with changes in
actual emergency. temperature. Without compensation, these changes
Even the best overfill prevention plan can in volume will look like changes in level when, in
sometimes go wrong, resulting in a spill. Vessels, fact, the actual contents of the tank have not
pumps, pipes, valves and fittings can also leak. It is changed. Accuracy of the temperature measurement
important to be able to detect a spill or leak as is important for providing proper compensation.
quickly as possible to mitigate the extent of the Temperature sensors with multiple measurement
release and potential damage. points and accuracy of 0.1˚C are required for this
application.
Leak detection Using a software program to monitor the level
The first line of defence in vessel leak detection is a instrument measurement is the best way to detect
continuous level instrument. The level instrument these small changes and determine when the level is
must be very accurate to provide an indication if the dropping when it should not, alerting operators of a
level decreases when the liquid in the tank is not possible leak or spill. Modern PC-based tank
actively being lowered. If the level starts to decrease monitoring software, such as Endress+Hauser’s
during inactivity, it would indicate a leak in the tank, Tankvision, has this capability.
and the monitoring system could then provide an
alarm. Watching the dike
For example, in a 10 m dia. storage tank, an The second line of leak detection is to provide a
unexpected drop in level of just 3 mm represents level switch inside the retention dike. Even rain water
approximately 235 l of fluid that has leaked out. accumulating after a storm should be detected as it
Because of this, accuracy needs to be measured in is necessary to remove this water in order to maintain
fractions of millimeters. Radar level gauges can the volume of the dike at an appropriate amount in
provide accuracy of 0.5 mm (Figure 4). For many the event of an actual spill or leak.
liquid presence. This assumes the water is
conductive, as is typically the case in retention dikes
due to the accumulation of rain water.
When the dike is filled with a non-conductive
liquid, the tuning fork shows presence of a liquid but
the conductivity switch does not, indicating a spill or
leak of a hydrocarbon or a non-conductive chemical.
If there is an accumulation of rain water and a spill of
a non-conductive liquid occurs and floats on the
surface of the water, the floating design of the
sensor assembly still indicates the non-conductive
liquid.
Winter 2017 42
Adam Wishall, Varec Inc., USA, outlines key points to consider
when selecting the most suitable gauge for tank level measurement.
L
evel measurement, as it relates to oil and gas, alone. Nor should the accuracy of a level-based system be
petrochemicals and hydrocarbons, includes point the only specification when making business decisions. The
and continuous level methods. With point level, investment of the system itself, and the associated costs of
instruments are used to detect whether a fluid is materials, labour and maintenance should be considered.
below or above a specific point. Typically, this method is The type of liquid in the tank, the measurement conditions
used to prevent overfilling of the tank or dropping the level and the tank itself are other factors to consider.
below a minimum threshold. Continuous level is designed Tank gauges fall into the following categories: manual,
to understand the amount of liquid within the tank to float and tape, servo, and radar. Each of these will be
support general inventory or process control. discussed within this article.
Tank gauging is often synonymous with the term ‘level
measurement’ as these devices enable the level Manual
measurement process to take place. There are many tank Manual tank gauging is still commonplace today as a way of
gauging systems available, but no particular instrument or measuring level and to verify performance calibration. This
system should be chosen based on data specifications technique uses graduated dip sticks or dip tapes.
4
43 Winter 2017
electrical signal for transmission over an instrumentation
field bus or communications loop. Most transmitters use an
incremental or absolute encoder with brush, optical,
magnetic, or capacitive sensors.
When connected to standalone float and tape gauges,
transmitters do the following:
Help visualise gauge data via the control room system.
Integrate temperature to have multivariable
measurement.
Use standard net volume or mass calculations for
accounting.
Integrate gauge data into a programmable logic
controller (PLC) or distributed control system (DCS).
Integrate with multiple protocols, i.e. MODBUS,
Biphase Mark, Mark/Space.
When used in combination with advanced gauging
technologies, transmitters can:
Provide redundancy and back-up level measurement,
with a local mechanical level indication that does not
require power.
Add temperature in addition to the level measurement
from both float and tape and radar gauges.
Integrate with multiple protocols, i.e. MODBUS,
Biphase Mark, Mark/Space.
Servo
Servo gauges are electromechanical gauges that use a small
Figure 1. A gauge board on a tank. displacer instead of a float. The displacer has buoyancy, but
it does not float on the liquid. It must be suspended by a
thin wire that is connected to the servo gauge on top of
Benefits of this level measurement method include: the tank. The weight of the displacer is balanced against a
extremely low instrumentation costs, no need for power, magnetic coupling and the wire drum of the servo unit. The
and ease of use. signal, an indication of the position of the displacer, is sent
However, skilled personnel are required to perform to the motor’s control circuit. As the liquid level rises and
checks, and accuracy is not as high due to the potential for falls, the position of the displacer is automatically adjusted
human errors. The gauge must also be on the top of the by the drive motor. An electronic transmitter sends the
tank to take measurements, which results in potential level information over a field bus to the control room.
exposure to product or fumes. Benefits of this level measurement method include: a
high level of accuracy; it can provide other variables in
Float and tape addition to level (i.e. spot density or multi-spot density
Also known as ‘automatic tank gauges’, float and tape profile, up to three liquid interfaces, water level and the
gauges have been in the marketplace for nearly 90 years. tank bottom); and only occasional maintenance should be
This method works by using a large float inside the tank, necessary. This method is a preferred solution for clean,
attached to a negator spring via a perforated tape. The refined liquids, such as gasoline, jet fuel, kerosene,
negator spring provides constant tension, which balances chemicals, LNG, etc.
the float on the liquid. The perforated tape engages pins on Drawbacks of this level measurement method include:
a sprocket wheel that, in turn, drives the counter assembly. it is the most expensive type of gauge on the market; it
Alternatively, when a gauge board is used to display the requires power; communications must be at the top of the
level, the negator spring is replaced by a counterweight tank; and it typically requires a stilling well. Also,
system. The liquid level in the tank is displayed on the maintenance and calibration activities must be on the top
gauge counter or indicated on the gauge board. of the tank where there is potential exposure to the
The cost of the device is moderate and its accuracy product or fumes.
levels are high enough for most operations that do not need
custody transfer accuracy. It is also extremely reliable and Radar
simple to use, and no power is required. The main drawback Radar tank gauges have become very popular in the
of this method is that occasional maintenance is necessary. marketplace. They are a ‘downward-looking’ measuring
Float and tape transmitters vary in their capabilities and system that must be installed on the roof of a tank. The
application, from simple indication of alarms, to level gauges measure the distance from the reference point to
encoding and temperature measurement integration. the liquid surface. Radar impulses are emitted by an
Transmitters convert the measurement parameter to an antenna, reflected off the product’s surface and received
Winter 2017 44
again by the radar system. The distance to the liquid Floating roof tanks
surface is proportional to the travel time of the impulse or Some storage tanks need a floating roof in addition to, or
frequency shift of the transmitted signal. Due to the nature in lieu of, the fixed roof. A sealing device is installed on
of the microwave, radar tank gauges need to be equipped the peripheral space between the roof and shell plate,
with functions to suppress interference echoes (such as which acts as a safety and pollution prevention device by
from edges and weld seams) in the tank so they are not trapping the vapour from low flashpoint products.
interpreted as level measurement. Floating roof tanks are broadly divided into internal
Benefits of this level measurement method include: it floating roof (IFR) and external floating roof (EFR) tanks.
provides a high level of accuracy; no maintenance is IFR tanks are used for liquids with low flashpoints (such as
needed aside from occasional cleaning; there is no direct gasoline, ethanol, etc.), while EFR tanks are suitable for
contact with the liquid; and it is complementary for a wide medium flash point liquids (such as naphtha, kerosene,
variety of liquids, including heavy asphalt and crude oil. diesel, crude oil, etc.).
Drawbacks include: high costs in high accuracy Float and tape gauges commonly use a pan/well inside
applications; the method only provides level measurement; the floating roof. Servo and radar gauges require a gauging
power is required; communication must be at the top of platform to mount the gauge over the product. Many
the tank; performance is impacted by
placement (i.e. it must be installed
USJOJUZDPOTVMUBOUTDPNr
North America | Europe | Middle East | Asia
Product movements and operations
Facility operators use logistics processes to plan daily
activities. As such, instrument viability and repeatability is
often more important than absolute accuracy. It may be
necessary to have complete integration and functionality to
view and track all product movement totals and
discrepancies, as well as the ability to have supervisory
control of pumps and valves. Ideally, the data collected
through the tank gauges should feed into a centralised
inventory management system. These systems tend to be
out-of-the-box and are, therefore, more cost-effective.
However, with custom programming, a PLC or DCS can also
be used.
With an inventory management system, facilities can
Figure 2. A petrochemical tank farm. also establish alarm limits based on their reaction time to
track data – in real time, while notifications happen at the
platforms provide a stilling well as a stable and calm control panel. This process enables operations to increase
surface to enable accurate measurements. the maximum flow rate and increase the amount of
inventory to sell by effectively gaining more storage space
Sphere and bullet tanks in the tank while still ensuring safety.
Flat-bottomed, cylindrical or spherical storage tanks are used
to store liquefied gases with very low flash points (LNG, LPG, Accounting and reconciliation
ethylene, butane and ammonia) under pressure or at It is critical for facilities to have timely and accurate level
temperatures under -148°F (-100°C). Bullet tanks are long, measurement, and accounting of the products stored in
cylindrical tanks with round or flat ends that are prefabricated tanks. This means that facility operators must correctly
and installed horizontally or vertically. Most often, they store report the volume stored, received, issued, transferred and
products that support facility operations, such as additives for moved. Some tank farms require management of
injection, fuels to run refinery processes or byproducts, such commingled inventory and reporting by the product owner.
as transmix from terminal product receipts. Bullet tanks can Managing gains or losses within industry standard
also store liquefied gases under pressure. percentages on a daily, weekly and monthly basis is also
Radar, servo or magnetostrictive technologies are ideal extremely important. Accounting and reconciliation
for these tanks due to their size and the products stored. solutions, including inventory ledgers by product and
owner, meter reconciliation, physical inventory
Underground storage tanks reconciliation, and reporting tools, are highly
Underground storage tanks are commonly used to store recommended. The ideal solution should also allow users
petroleum-based products. They are regulated to prevent to review trends and take appropriate actions.
the release of petroleum and contamination of
groundwater. In the US, they are primarily used at Environmental compliance
automobile filling stations, but can also be found at military Programmes and regulations relating to overfills, leaks and
bases, airports and tank farms. emissions of environmentally damaging products are now
Gauge sticks, tank level sensors or magnetostrictive in place and must be adhered to by facilities. Bulk storage
probes are commonly used with these tanks. facilities typically desire a solution that can integrate with
instruments that are already installed to provide and
Going beyond level measurement manage alarms that help detect leaks. This can be
Requirements for the management of bulk liquids are accomplished using an inventory management system or
unique for each organisation that operates a storage custom PLC programming.
facility. Level measurement is likely only one factor in the
equation. There are four key areas that should be Conclusion
considered to understand operational needs. Whether a company is looking for a better way to track
and measure bulk liquid assets, enhance automated
Inventory or custody transfer processes, increase process control, streamline inventory
Inventory control describes the management of liquid accounting and reconciliation, or improve safety
inventories that generally do not change ownership when regulations within a tank farm, level measurement is the
moved or used. Custody transfer implies that two or more place to start. An accurate level measurement system is at
parties have an agreed system for accurately measuring the the core for building more efficient operational processes
amount of product transferred. Tank gauging systems may in tank farms and terminals.
be selected based on accuracy, repeatability or the ability This article is not intended to answer every question,
to perform multiple measurements, and can vary but rather provide an overview on level measurement and
significantly in cost. It is important to understand what the impact on managing bulk liquids. Organisations are
type of level measurement is actually required. encouraged to complete their own due diligence.
Winter 2017 46
A
MOVING
TARGET
I
t is impossible to manage what cannot be measured, and
Adam Krolak, Honeywell Process across hydrocarbon processing, managing levels is critical.
Solutions, Poland, discusses From monitoring inventories and supply chains to preventing
overfills, detecting leaks and avoiding dry-runs that damage
accurate level measurement in pumps, accurate level measurement is essential to safety,
dynamic applications. efficiency and reliability.
Most obviously, level measurement is key to the monitoring
and control of terminals. It is ubiquitous across tank farms,
offsites, storage areas, and loading and unloading sites. In many
of these cases, measurement is critical but not complex, and
operators can choose from a wide range of available
technologies, each of which has its own strengths and
weaknesses.
Even in these circumstances, challenges can arise. Tanks and
tank farms may be in extreme or widely varying climates,
resulting in changing or challenging ambient temperatures. For
example, measured liquids may be sticky and coating, with heavy
fractions and impurities at the bottom of the tank, and the
properties of the liquids in some tanks may vary by batch or
product specification.
Such cases make consistent and reliable measurement more
difficult to achieve. More widely, though, level measurements are
required not just for the main, large storage tanks for crude
4
47 Winter 2017
or gasoline. Accurate measures are critical at almost every Accurate level measurements are just as crucial in
stage of hydrocarbon processing. these applications, but in many cases significantly more
Measurements are crucial across crude processing: at challenging to achieve.
the well stream separator, for crude storage, dewatering,
dehydration, desalting and degassing, as well as during Crude processing applications
chemical injection and vapour recovery. They are also Right at the outset with initial separation of gas, crude oil
essential during refining: for input storage, at the and water, conditions are turbulent:
preflash, flare knockout and compressor drums, and at The headspace of a separator contains pressurised,
the distillation column, reflux accumulator, separators wet gas with the possibility of condensation.
and so on. The liquid surface in high pressure separators may be
In many of these applications, measurements are not bubbling and foaming.
taking place in large tanks with relatively static product. A degree of emulsion is present in both high pressure
It is smaller tanks where crude or product is being and low pressure separators.
heated, put under pressure, moved, mixed, blended and Residue and contamination gathers on the bottom of
having chemicals added. Hydrocarbon production is a a separator, leading to build-up and fouling.
dynamic, turbulent process with foaming, condensation, Many of these issues are present across other
expansion and constant changes in the liquids’ processes. The need to provide accurate measurements
properties. despite foaming and fouling is, to a greater or lesser
extent, present across crude storage, chemical injection,
dehydration and degassing, for example. Interface
measurement is particularly key, not just during
separation, but also across many of these same processes.
Meanwhile, at the vapour recovery stage, operators
need accurate measurement of liquefied hydrocarbon
vapours in a flash drum or output tank. The challenges are
again significant:
The low dielectric constant of liquefied hydrocarbons
results in a small reflection signal for measurement
technologies relying on one.
Small tank dimensions require measurement close to
the top and bottom of the tank.
There are cold temperatures and the presence of
vapours above the surface of the measured liquid.
There are countless other examples. Each stage of the
process has its own issues.
Refining measurement
The challenges during refining are no less significant.
Figure 1. Guided wave radar (GWR) operating
principle.
Smooth operation of the preflash drum, for example, is
critical for efficient performance of the main distillation
unit, and continuous operation means long periods
between maintenance during which operators need reliable
measurements. These measures must account for densities
of the measured liquids that change at startup – creating
difficulties for measurements based on pressure or
displacement – and foaming, again, on the surface of the
liquid.
Meanwhile, in the distillation columns, level
measurement at the bottom of a distillation tower controls
the ‘bottoms’ product, which is hot, and can contain
impurities and be sticky (coating), while lighter products in
the upper part of the column have low dielectric constant.
The fluid can also be volatile and may be at bubble point,
giving noisy measurements with some level technologies.
And so it goes on. Changes in temperature, pressure,
density, dielectric constant or the measured material
abound throughout the process. Agitation, foaming,
corrosive properties, dust and construction of the tank
Figure 2. A tightly focused propagation path. should also be factored in when choosing a measurement
technology.
Winter 2017 48
The choice of technology The electromagnetic pulses used by the GWR and
To some extent, the choice of technology has already waveguide also give it much greater immunity to the
narrowed. The drive towards automation and influence of the mechanical properties of the
uninterrupted production, as well as safety, has moved atmosphere in the tank (vapours, dust, changes in
many away from manual and mechanical level temperature and pressure, or foaming). These can
measurement. Electronic methods, with no moving parts particularly affect technologies relying on mechanical
and built-in diagnostics, also offer lower lifecycle costs. wages, such as ultrasonic measurement. It also copes
However, a range of options remain, including bubbler, well with changes in the specific gravity. Meanwhile,
hydrostatic and differential-pressure instruments. But when measuring interfaces (such as oil on water), the
these are all sensitive to changes in the density of the waveguide allows the measuring signal to penetrate the
measured product, while capacitance level measurement upper product and provide measurement of the lower
can, in some applications, be affected by changes in the product.
dielectric constant of the measured product. Finally, with no need for an antenna, GWR is simple to
Ultrasonic measurement is perhaps a stronger install. The waveguide fits easily through narrow mounting
contender. Nevertheless, it requires a path for the holes or nozzles.
ultrasonic signal clear of obstacles and
foams, dust or heavy vapours, as well as
an application falling within a limited
operating pressure and temperature
range.
In fact, the checklist of requirements
for a measurement technology that is
suitable across hydrocarbon processes
is significant, and includes the following:
Maintenance-free level
measurement.
Ability to cope with a wide range of
pressures and temperatures.
Insensitive to changes in density or
dielectric constant.
Immunity to heavy vapours, dust or
foaming.
Accurate, even with turbulent
surfaces of the measured product.
Unlike mechanical or other
electronic methods, guided wave radar
(GWR) can meet these demands.
A good aim
GWR instruments send electromagnetic
pulses to the product and use the time
of travel of the reflected signal to
calculate the level in the tank. The
signal travels along a waveguide that
can be made of a stiff metallic rod,
flexible wire or a coaxial construction
(Figure 1).
Compared to ultrasonic meters or
even non-contact radar (another the complete tank floor and external corrosion control package
alternative), the measurement signal for - assessment, engineering, installation and maintenance -
the GWR is concentrated around the we are the single source solutions provider for terminal operators
waveguide (or inside it in the case of a
coaxial waveguide). This narrow signal
propagation path (Figure 2) minimises the
potential impact of stray signals caused
by construction elements or obstacles in
the tank. The waveguide can be mounted
on an angle or even formed to follow
the contours of an irregularly shaped Tim Whited Max Moll Mark Cadle Jay Keldsen
VpCI® and CorroLogic™ Tanks and Terminals Director Director
tank. Subject Matter Expert Corrosion Control Expert Corrosion Solutions Business Development
Phone: 303.589.1166 Phone: 918.998.3355 Phone: 419.204.0791 Phone: 330-283-0453
tim.whited@mesaproducts.com max.moll@mesaproducts.com mark.cadle@mesaproducts.com jay.keldsen@mesaproducts.com
Fine tuning
To set the model, the sensor is pre-programmed with
default values for parameters determined by the
dielectric constants of the liquids being measured. These
can be easily adjusted at any stage.
Where the attenuation of the material measured
changes during the process in the tank, Honeywell’s GWR
uses an auto-amplitude tracking feature. This supplements
the pulse model determined by the user-defined
parameters with historic measurement data. In these
cases, once the sensor has locked onto the correct level,
it will track the level signal, even when the amplitude of it
changes.
This feature enables the instrument to track signals
Figure 4. Hydrocarbon processing site. with amplitudes up to 35% different to those expected
from the pre-programed parameters. Thus, it can adapt to
changes resulting from varying conditions in the tank,
Theory and practice whether due to temperature, vapour density, turbulence
Despite the inherent advantages of GWR, its performance or build-up of films on the probe.
is heavily dependent on the ability to discern the correct
signal (reflection) from interference. Thin interfaces, probe Conclusion
ends, in-tank obstacles, build-up, and other issues can all The choice of level measurement method in
still cause challenges. hydrocarbon processing is critical because the
Usually this distinction between the reflection from applications are both varied and demanding. There are
the surface and other factors is done through a simple few viable alternatives that can meet the requirements
peak-finding algorithm, which attempts to separate the of the many challenging applications across the process.
strongest signal from the (hopefully weaker) interference. GWR can meet most, if not all, of the requirements.
This is not always entirely possible in more challenging It has strong immunity to the common foaming, fouling,
applications, however. build-up, turbulence, temperature, pressure, and tank
To address this, Honeywell has developed a unique characteristic issues – and many other challenges to
algorithm that compares the signal with an internal accurate level measurement. It is a measurement
model of the expected reflection (stored in the principal with many significant inherent advantages.
instrument). This model can be adjusted with parameters In practice, however, some applications can challenge
such as gain, width and attenuation, and is based on the even GWR to deliver consistently reliable measurements.
type of liquid, process connection, probe and tank For this reason, the choice of not just the measurement
properties, combined with the company’s internal method, but the precise technology employed is also
experience gathered through experimentation and critical. The level algorithm used in Honeywell’s Smartline
laboratory work. transmitter builds on the inherent advantages of GWR
By overlaying the actual echo curve of the signal with a unique model-based comparison for more accurate
captured by the GWR on the model (Figure 3), the true level measurements – whatever challenges the dynamic,
signal reflected from the liquid surface (and therefore turbulent, complex processes involved present.
Winter 2017 50
Juan Tapia, ABB, Spain,
considers whether
digitalisation is more
than just a passing
trend in downstream
tank and terminal
operations.
D
igital business transformations are about doing
things differently – creating new business
designs using digital solutions to deliver more
value to businesses, people and processes.
While it seems that everyone is talking about these
digital solutions, one key question is whether this is a
passing trend or a truly transformative opportunity.
Sluggish global growth and the highly
commoditised market for petroleum products mean
that downstream companies, such as tank and terminal
operators, need to explore new areas of process
optimisation. Integrating automation, safety and other
systems, such as telecommunications, can save
companies 20 – 30% in capital and operating
expenditures.
For example, one way to minimise downtime is to
take full advantage of today’s availability of inexpensive,
non-intrusive sensors and real time asset monitoring
systems. These devices make it possible for companies
to shift away from time-based maintenance strategies,
which can repair equipment too often or too little, to
5
51 Winter 2017
today, it is possible to increase terminal efficiency by
reducing or better balancing inventory needs. This
delivers more flexible operations and minimises
downtime. Digitalisation can also reduce the risk of
loading incorrect quantities of product by ensuring real
time control of product delivery, which reduces the
scope for manual mistakes and improves communication
between local terminals and headquarters.
While digitalisation can add value in a number of
areas within a terminal, the most visible of these is in its
potential to automate processes such that revenues are
increased through faster loading and costs are cut
through error minimisation and personnel reductions.
Five general areas tend to benefit most from automation:
Figure 1. CLH loading bays. Trucks are filled
automatically with the product matching the order
they have come to pick up (source: CLH).
Order management
Instead of receiving orders via fax or email, which
requires costly and time-consuming manual
intervention with scope for mistakes, orders can be
processed automatically with the relevant information
being quickly fed into the company’s enterprise
resource planning (ERP) system for faster processing
and reconciliation.
Site access
Trucks, rail wagons and barges no longer need to wait
as long for manual verification and permission to enter
for loading or unloading purposes. Instead, automated
access control technology can allow trucks to enter
and exit terminals quickly, while maintaining high levels
of security. Valid access is granted through card
Figure 2. Operators monitor terminal activity from a readers, such as radio frequency identification (RFID),
distance (source: CLH).
iris scanners, etc.
ones that are more heavily based on actual equipment Product receipt and dispatch
needs. Avoiding unnecessary repairs is not only cheaper Digitalisation can speed up the tasks that are needed
due to reduced frequency, but this also minimises the to perform the loading and unloading of products, such
opportunities for things to go wrong. For example, it is as verifying orders, generating transaction
not uncommon for equipment that has been maintained documentation and monitoring volume changes. The
not to be put back to the correct parameters once generation and printing of bills of lading can also be
maintenance procedures have been performed. automated for even greater efficiency.
Additionally, if a company’s equipment indicates that it
is likely to break down soon, the company has the Inventory balancing
opportunity to take proactive action before it fails. Product inflows and outflows are dynamic. Digitalisation
In addition to improved maintenance strategies, helps operators to calculate the difference between
another way that technology can help downstream expected yields and actual values more accurately. This
players generate competitive advantages is by is achieved through maintaining a real time record of all
improving visibility beyond an individual plant, tank or terminal operations, calculating the theoretical product
terminal to an enterprise level, or even along the quantities and conducting timely product reconciliations
hydrocarbon supply and demand chain. Doing so can to calculate product gains and losses.
yield benefits from both a cost-saving and
revenue-generating perspective. Loading
This article will explore how terminals can use Product and additive recipe calculations can be
digital advances to extract significant financial value automated to improve speed and avoid manual errors,
through optimising resources, reducing risk and ensuring enhanced profitability and safety.
increasing throughput.
Case studies
Digitalisation in terminals Two large industry players have already used a range of
Traditionally, terminals have been primarily operated ABB AbilityTM digital solutions to improve their
manually. However, with the new technology available financial performance.
Winter 2017 52
REMOTELY CONTROLLED
REMOVAL OF SLUDGE
FROM OIL
TANKS Zone
TVC
the Transportable Ventilated Cabine,
for the remote control of the vehicle, safe instalation and operation
of the hydraulic power pack and TV signals, ATEX Zone 1 or 2
Winter 2017 54
BLABO® Tank Cleaning
SLOPO® Oil Recovery
MoClean® ATS Tank Cleaning
Clean, safe,
and profitable
D
igital technology is gaining a strong foothold in the energy
industry, including the storage tank sector, as more
companies embrace the benefits of automation in
measurement solutions and other capabilities. Those benefits
can be far-reaching, ranging from saving clients time and money, to
boosting efficiency and safety. Digital technology can be a vital tool in
improving productivity, reducing costs and providing more useful
analytics to enable companies to make faster, more effective
decisions.
Digital transformation in the energy industry could unlock as much
as US$1.6 trillion of value for the industry, its customers and society,
according to some estimates. New digital technologies combined with
data-driven insights can transform operations, boosting agility and
strategic decision making, and resulting in new business models.
In fact, research by management consultancy, Accenture, shows
that digital technology is now dominating every sector of the
economy.1 The global digital economy accounted for 22% of the
world’s economy in 2015 and it is rapidly growing, as those numbers
are expected to increase to 25% by 2020, up from 15% in 2005.
Digital technology is bringing unprecedented amounts of change
with it, including new technologies and solutions, more data, an
upsurge in collaboration, new alliances and new startups.
A digital industry
Accenture’s survey found that despite the current industry downturn,
80% of respondents intend to spend the same amount, if not
significantly more, on digital technology in the next three to five years.
5
57 Winter 2017
staff. It is also important for companies to monitor
key industry and technology trends, and decide
whether to lead the industry as an innovator or act
as a follower by quickly implementing tested
technologies and processes, Forbes said.
TechnipFMC recently completed two projects
that involved providing automated measurement
solutions to clients in the tanks and terminals
sector.
Winter 2017 58
CELEB
RATING
20 YEA
RS
CORPORATE HEADQUARTERS
42422 Hwy. 30, Gonzales, LA 70737
(225) 644-8747 | Smith-Tank.com
Figure 3. A portable graphic interface receives
data from LCC for observation and control of a tank
monitoring system.
Conclusions
These two projects represent just a small segment of what
energy companies are accomplishing as part of an industry
embracing digital transformation. The industry will
continue to become more reliant on digital systems and
automation to promote a faster, safer and more reliable
delivery of products and services. As that reliance grows,
industry leaders must recognise that culture changes within
companies are needed to realise digital technology’s full
potential.
To turn data into value, companies need to figure out
Ρ how best to get people to interact with digital automation.
As new digital solutions are deployed, the industry must
ensure that it has the personnel to fully exploit the
advancements. One way to do this is through collaboration
with partners. A high level of collaboration within the
energy industry will help ensure that personnel have the
expertise and forward-looking mindset to effectively
employ digital advancements. A culture of sharing
processes clearly has its benefits and will help advance
digital innovations and expansion.3
As the industry moves forward and discovers new and
more creative ways to adapt digital automations, it will
realise an ever-increasing array of benefits, including greater
efficiencies impacting operations and saving more time and
money.
With digital tools and real time analytics driving
automation, companies, clients and other stakeholders are
coming out on the winning side. The digital transformation
era is ushering in a new age of productivity and profits that
x Over 7,500 RGAs in service worldwide can be shared by all.
x ĞƐŝŐŶĞĚĨŽƌ,Ї^ĂŶĚDĂƌŝŶĞŶǀŝƌŽŶŵĞŶƚƐ
References
x DĞĞƚƐW/ϱϰϱ͕E&WϳϴϬ͕dyĞƌƚ 1. 'People First: The Primacy of People in a Digital Age', Accenture
Technology Vision 2016.
x ůĂƐƐϭ͕ŝǀϭZĞƋƵŝƌĞŵĞŶƚƐ 2. 'How Digital Technology Will Change Oil and Gas Companies',
Forbes, (24 June 2016).
3. 'Culture change key to digital's success in the oil and gas industry',
Offshore Energy Today, (9 March 2017).
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LQIR#OHFJOREDOFRP
Dr Davies Michael, Dr Moncalvo Davide valve requires the machining of capillary ducts and
small annular lateral regions. Gaseous flow through
and Thorsten Schaper, Braunschweiger pilot-operated relief valves should ideally be
Flammenfilter GmbH, Germany, discuss particulate, soot and droplet-free, in order to avoid
blockages.
how to overcome pilot valve instability Although good engineering practice on the correct
on cryogenic storage tanks. application of pilot-operated devices are available (for
P
instance API-520)1, this article will describe the working
ilot-operated pressure relief valves installed on principle of pilot-operated valves and analyse several
cryogenic storage tanks are expected to be as types of instability associated with poor design. It will
stable as their high-pressure counterparts, also present dampeners as an effective solution to
pilot-operated safety valves, during operation. avoid instability in plant operations.
Operators deciding to install a pilot-operated pressure
relief valve tend to use stability to explain their Pilot-operated valve technology
preference for this class of devices over spring-loaded Pilot-operated relief valves are commonly installed on
devices. The major drawback of pilot-operated relief top of cryogenic storage tanks as a last line of defence.
devices is price, since the manufacture of the pilot Figure 1 shows a pilot-operated relief device, which
6
61 Winter 2017
in cryogenic applications, though non-metallic parts
such as gaskets, which may break or deform at low
temperatures, may deserve proper specification with
reference to the application.
From a general analysis, it seems that pilot-operated
safety relief valves are expected to be stable. In reality,
the pop action pilot-operated relief valve in Figure 1 is
installed on a cryogenic plant with some outlet piping
that included a flame arrester on the discharge side
when it was instead planned to be sized for
atmospheric release through a short discharge pipe. In
other cases, pilot-operated valves may be located far
Figure 1. A pilot-operated pressure relief device from the cryogenic tank that they protect and where
mounted on a cryogenic tank. they were supposed to sit. Given that the relieving
pressure of the valve is closely adjusted with the tank
design pressure, neglecting in-line pressure losses may
have a dramatic effect on tank safety when inlet
pressure losses are neglected or not determined
correctly. Keeping in mind that LNG storage tanks can
have quite long inlet piping, failing to consider inlet
losses can lead to valve instability.
Below is a detailed analysis of relief valve
instability, along with suggestions on how to minimise
the risks involved during start-up and operation.
Winter 2017 62
valves and pop action pilot valves are more likely to their density sinks below that of the lighter fractions
experience chatter than modulating pilot-operated. and they roll over them. Vapours from more volatile
Safety valve instability is a result of the wave components in heavier LNG fractions remain entrapped
dynamics in the pipeline both upstream and between the stratified layers and the pressure in the
downstream of the valve. For the inlet pipe, API-520 tank increases. Only the gases in the upper
requires that the irreversible pressure loss between stratification can escape in the vapour space. The
the protected equipment and the valve should not lighter fractions are now at the tank bottom and warm
exceed 3% of the set pressure of the valve. For up, which causes the rolling to continue. The vapour
pilot-operated pressure relief valves, if the irreversible flow rate generated by roll over is conservatively
pressure loss exceeds the 3% threshold, there is the estimated in EN-1473 to be 100 times the pump-in flow
possibility of a remote pressure sensing, which means rate.8 Indeed, roll over can be easily avoided by storing
connecting the sensing line direct to the pressurised LNG of different compositions in different tanks,
item. According to this standard, remote sensing may promoting the mixing and monitoring of pressure and
help to eliminate or minimise uncontrolled valve temperature changes in the tank.9
chattering in a pop action pilot-operated pressure If an LNG tank’s relief system has been designed for
relief valve and will permit a modulating the roll over case and the pilot valves that will handle
pilot-operated pressure relief valve to achieve full lift roll over are only exposed to very low relief rates
at the required overpressure. during start-up, a dampening system installed inside of
While the concept of the 3% in-line pressure drop the valve can prevent instability of the relief valve.10
as necessary and sufficient to avoid valve instability
has been analysed and criticised, no clear direction Conclusion
can be found to improve it.2 For instance, Smith, Even when a customer is convinced about the validity
Burgess and Powers concluded on the base of an of a safety review, an additional stability level in the
investigation of a sample refinery that some safety pilot-operated valve encounters broader acceptance
relief valves may operate stable even if the 3% rule is among users. Davies and Heidermann showed that the
violated.3 On the other hand, Hös, Champneys, Paul insertion of a dampening system on the spindle
and McNeely4 concluded that the 3% criterion is not smoothens the oscillations of the moving parts,
always conservative, and others, including Kastor,5 turning highly dangerous chattering into more
criticised that chatter was observed at installations innocuous cycling.10 For systems that experience
with pressure losses less than 3%, while on other instability due to design error, rather than due to inlet
configurations with larger pressure losses it could not pressure losses, increasing blow down may be an
be observed. Several authors seem to convene that effective measure to solve the problem.
the 3% pressure loss criterion may be an
oversimplified view of the complex valve behaviour References
1. 'Sizing, selection and installation of pressure-relieving
and that high frequency acoustically induced
devices', API-520, Washington, US, (2013).
vibrations (AIV) between the safety valve at high 2. DANNENMAIER, T., SCHMIDT, J., DENECKE, J. and
relieving pressures and the downstream pipeline at a ODENWALD,O., 'European Program on Evaluation of Safety
Valve Instability', Chemical Engineering Transactions,
far lower pressure level lead to safety valve instability pp. 625 – 630, (2016).
and piping damage.6 A study of the British Health and 3. SMITH, D., BURGESS, J. and POWERS, C., 'Relief device inlet
piping: Beyond the 3 percent rule', Hydrocarbon Processing,
Safety Executive (HSE) refers to AIV as the source for pp. 59 – 66, (2011).
at least 20% of the hydrocarbon releases in the 4. HÖS, C., CHAMPNEYS, A., PAUL, K. and MCNEELY, M., 'Dynamic
North Sea.7 behavior of direct spring loaded pressure relief valves in gas
service', Journal of Loss Prevention in the Process Industries,
As mentioned previously, LNG storage tanks can pp. 70 – 81, (2014).
have long inlet piping. In its research and experience 5. KASTOR, K., 'A dynamic stability model for predicting chatter
in safety relief valve installations', DuPont Eng Dept Rep
of solving such issues during start-up, PROTEGO® Accession Nr 17131, (1986).
recommends to increase the blow down if the valves 6. CARUCCI, V. and MUELLER, R., 'Acoustically induced piping
starts to chatter due to high inlet pressure losses. vibration in high capacity pressure reducing systems',
ASME82-VA/ PVP-8, (1982).
Another cause for chatter in pilot-operated valves 7. 'Offshore hydrocarbon release statistics and analysis', British
is excessive oversizing of the device. Although a slight Health and Safety Executive (HSE), London, UK, (2003).
8. 'EN 1473: Installation and equipment for liquified natural
oversize of the relief devices is desired for safety gas - Design of onshore installations', EN-1473, Brussels,
reasons, in a largely oversized device the released Belgium, (2016).
9. MOKHATAB, S., MAK, J., VALAPPIL, J. and WOOD, D., 'Handbook
mass flow rate does not suffice to reach full lift and
of Liquified Natural Gas', Oxford: Elsevier, (2014).
maintain the valve permanently open. 10. DAVIES, M. and HEIDERMANN, T., 'Lessons learned solving
A typical scenario for an extremely oversized device pilot valve instability issues on LNG storage tanks',
Flachbodentanktagung München, Munich: TÜV Süd, (2016).
is given by rollover in a stratified tank. In a stratified
LNG tank there are fractions of different LNG
compositions, for instance, due to different sources of
Acknowledgement
This article has been published with the authorisation of the
origin and the lighter (molar weight) fractions do not International Institute of Refrigeration (IIR). The conference
proceedings from the 14 th Cryogenics 2017 IIR International
mix with the heavier ones. When the tank base is not Conference are available in the Fridoc database on the IIR
correctly insulated, the heavier fractions warm up until website at www.iifiir.org.
63 Winter 2017
Winter 2017 64
Vincent Lagarrigue, Trelleborg Oil and Marine,
France, calls for a rethink of transfer solutions
to suit the rapidly expanding LNG market.
THINKING
O U T S I D E
T
his year is likely to go down as a critical year in the evolution of
the global LNG market. Mega projects such as Predule FLNG,
Wheatstone LNG and Gorgon LNG underline continued
impressive demand growth for LNG across the globe. Supplies
of LNG, according to recent research published in the Financial Times,
are on course to increase by 50% between 2014 and 2021 – overtaking
coal by 2030.1 According to the Financial Times, energy consultancy
Wood Mackenzie says gas now outweighs oil by a factor of two to one
among pre-development resources awaiting investment decisions.1
As the market grows, important new dynamics are developing that
will drastically reshape how LNG is transported and transferred. Several
new LNG importers, including Poland, Jordan, Malta, and Pakistan, have
also emerged in the last two years, adding to continued growing demand
from traditional hubs such as China and India. The Middle East and
North Africa regions are also becoming strong importers of LNG,
evolving from being export-dominated LNG markets.
This has a profound knock-on effect for those transporting and
storing LNG. This year is due to be the busiest year on record in terms of
growth of the LNG carrying fleet and it is on course to set a record for
LNG carrier deliveries, with 55 possible ship completions. As the fleet
grows, however, it is gradually diversifying. As new market dynamics
necessitate the splitting of LNG into smaller packages, the current live
LNG fleet includes 26 floating storage regasification units (FSRUs) and
33 small scale ships of 30 000 m³ or smaller.
6
65 Winter 2017
This reflects the need for LNG supplies to reach a multiple polymeric film and woven fabric layers is specific
broader range of locations and facilities – moving away to the hose size and application. The polymeric film and
from solely being the domain of large terminals and fabric materials are selected to be compatible with the
import/export hubs. Developing countries, many with conveyed product and the operating temperatures likely to
frontier locations, benefit from the flexibility in power be encountered.
infrastructure development offered by the relatively quick Another benefit of these insulated hoses – such as
deployment capacity of small and mini-scale projects, Trelleborg’s Cryoline range – is that they can reduce
most of which utilise FLNG platforms for storage. The boil-off by as much as 60%, equating to a saving of
traditional model of vast, land-built terminals and 10 billion Btu of energy over the course of 500 transfers.
long-term supply contracts (up to 25 years), is gradually The outer protective hose draws on flexible rubber-bonded
being replaced with a much more agile and scalable model. hose technology, which is known for its high resistance to
Using floating assets, such as FSRUs and FLNG vessels, many fatigue and its ability to withstand harsh environmental
countries are now able to realise the distribution of reliable conditions.
energy to locations where access to power has, until now,
been far from guaranteed. Transfer – ship-to-shore
In addition, many major ports are investing heavily in The flexibility and high flow rates achievable by cryogenic
LNG transfer infrastructure to maintain their leading status, hose technology increase the economic feasibility of
both for LNG bunkering and trading. The cruise sector is power generation, terminal, and marine bunkering projects
rapidly adopting LNG as a bunker fuel, as well as other that are located away from existing infrastructure,
specialised sectors, such as ferries, tugs, and short-sea particularly in areas where jetty-based transfer would be
cargo. Collectively, these factors have seen the continuing unfeasible because of harsh conditions or environmental
development of transportation, storage and transference concerns. A major advantage of hose-in-hose technology is
assets across the supply chain. that it can negate the need for large-scale fixed onshore
These trends place an urgent demand on suppliers in infrastructures; a simple concrete platform onshore
multiple sectors to advance fresh thinking around combined with hose transfer solutions offers an alternative
innovative means to transfer LNG; finding solutions that in locations where heavier fixed onshore infrastructure
strike the balance between new means to improve costs would be prohibitive.
operability whilst maintaining the highest safety standards. During the development of Cryoline technology,
several full-scale hose prototypes were successfully tested
Rethinking LNG transfer in both static and dynamic conditions, with most tests
A certain degree of ‘unlearning’ is required in developing taking place in cryogenic conditions at -196°C,
transfer methods that suit the new range of challenging demonstrating their ability to withstand fatigue resistance
transfer scenarios. Traditional thinking has been that LNG in hazardous conditions.
vessels would moor at the dockside and use a jetty By cutting down on the need for expensive
platform for ship-to-shore transfers, or use bridging arms infrastructure, using cryogenic floating hoses for
for ship-to-ship transfers. However, ship-to-shore gas ship-to-shore transfer can deliver crucial breakthroughs in
transfer must now take place in environments where this cost-effectiveness that increase feasibility for power
type of infrastructure would be prohibitively expensive, generation and terminal projects – particularly those in
either due to harsh conditions or because waters are too remote, off-grid areas where these facilities are essential
deep or shallow to allow a jetty to be constructed. In for the development of electrical and transport grids.
addition, many existing terminals set up for larger carriers
may not be equipped to handle transfer to and from Transfer – ship-to-ship
smaller vessels. Similarly, offshore, side-by-side transfer These hoses also expand options for offshore ship-to-ship
using bridging arms faces limitations in harsh conditions. transfers in a broader range of locations. Floating receiving
Major breakthroughs have come from rethinking how the and distribution terminals and coastal gas carriers are now
hoses themselves function in the transfer process. Because an integral part of LNG activities, and a crucial cog in the
LNG must be transported at a temperature of -163°C, LNG LNG supply chain. They offer more flexibility for storage
transfer solutions require specialised cryogenic hosing to and transfer outside of increasingly congested ports, and
safely transfer LNG to regasification plants, and as such, minimise voyage time. Transfer to and from these facilities
considerable research has gone into the development of presents a range of challenges; the highest levels of safety
these. Flexible, durable and easily adaptable to multiple must still be maintained amid the effects of winds, waves,
configurations, composite floating cryogenic hoses form the and currents in the open seas.
bases of a range of new options for transfer. Trelleborg’s technology offers a safe and robust means
Composite, ‘hose-in-hose’ LNG hoses typically consist of safely loading and unloading LNG in these conditions.
of multiple, unbonded, polymeric film and woven fabric Two factors are essential here: the distance between the
layers encapsulated between two stainless steel wire vessels involved, and the duration of the transfer. Risk is
helices – one internal and one external. Essentially, the film reduced the further apart the vessels are, and the shorter
layers provide a fluid-tight barrier to the conveyed product, the duration of the transfer.
with the mechanical strength of the hose coming from the By using floating cryogenic hoses in tandem
woven fabric layers. The number and arrangement of configuration, as opposed to side-by-side, vessels can be
Winter 2017 66
Need a reprint?
T
he past 20 years have been a real rollercoaster
ride for the oil and gas market. Dramatic
changes in the sector mean that oil companies
can no longer own every link in the
hydrocarbon production chain – from upstream
exploration and extraction equipment, through
midstream pipelines and transportation infrastructure,
to downstream terminals and storage facilities.
In response to market pressures, there has been a
rush of outsourcing over the last few years. Oil
companies that are keen to focus on their core
business have signed contracts, sold equipment and
even off-handed terminals to companies that are
willing to offer these services.
The changing market has also driven a shift in
priorities for refineries themselves. Conversion to
storage facilities (or away from refining altogether) has
become commonplace, particularly for North Sea
6
69 Winter 2017
Case study one
Located between St David’s and Aberdour on the Firth
of Forth in Scotland, the Braefoot Bay tanker terminal is
a key export base for LPG and condensate. The gas is
piped to the St Fergus inland site direct from the North
Sea, broken down to form ethane, and then converted
into ethylene, propane, butane and condensate. Loading
takes place over two exposed, deepwater berths
24 hr/d, seven days a week, all year round.
By taking on the role of mooring service provider at
the Braefoot Bay terminal, GAC made a commitment to
providing Shell with a modern, state-of-the-art fleet
that focused on traditional line handling whilst
remaining manoueverable, safe and well-equipped.
Particular attention was paid to crew welfare and the
Figure 1. The Braefoot Bay terminal.
procurement of new vessels with welfare facilities to
keep morale high.
GAC invested considerable time and expertise into
researching the procurement of versatile, modern
vessels that went beyond the extensive demands of
the terminal, and met the strict new legislation laid
out by the UK’s Maritime and Coastguard Authority
(MCA).
A vessel was quickly procured from Australia and
two more were ordered from a UK-based boat builder.
In line with Transfer of Undertakings (Protection of
Employment) [TUPE] regulations, 15 personnel who
were already stationed at the terminal became GAC
Figure 2. GAC UK’s Wave Spirit performing mooring employees. A rotational working structure was
operations at Braefoot Bay. introduced to improve the work-life balance for staff,
personnel was increased to accommodate the new
rota, and the company committed to a programme of
terminals. This trend is becoming increasingly retraining and certification through both external
widespread as the industry seeks ways to cut costs partners and its own corporate academy.
while still delivering value for money. With a new fleet, fuel costs and response times
were reduced, thus improving efficiencies at the
Race to the bottom terminal. The efforts at Braefoot Bay demonstrate how
Such upheaval has created a market that is ripe for a positive attitude to quality can foster long-term
hungry new players to make their mark. However, business arrangements and improve operational and
caution must be exercised to maintain standards and crew welfare standards.
avoid a ‘race to the bottom’ in terms of pricing, at the
cost of quality service. Case study two
This ‘race’ puts additional pressure on operators As part of a recently signed deal with a major
when considering long-term contracts that can run for petroleum refiner, GAC provides key shore-side
10 years or more. Choosing a cheaper supplier in year services including personnel (and their training) at a
one could cause unnecessary stress in year five, when range of storage and terminal locations across the UK.
complacency and dissatisfaction at the service quality With a key focus placed on hydrocarbon transfer,
levels come to the forefront. terminal staff are required to walk lines to check for
Instead, the onus must be on the supplier to leaks and take samples of cargoes to ensure that
develop a bespoke service package that is tailored to deliveries are strictly to specification.
the specific needs of terminals and storage facilities Cargo sampling is particularly important in a market
well into the foreseeable future. Customers now that is keen to avoid disputes over ‘off specification’
demand more for less, with expectations of cargoes. Samples showing that the condition of the
round-the-clock coverage, a dedicated team of cargo is unchanged between loading and unloading are
qualified personnel and fast, efficient and vital in avoiding such potentially costly claims for both
cost-effective support the norm. terminal operators and vessel owners. Despite the fact
The GAC Group recently signed a deal with Shell to that there is still limited understanding of the
manage the Braefoot Bay terminal in Scotland. It has importance of cargo sampling in the wider downstream
also formed a wide-ranging partnership with a major hydrocarbon industry, it is a key area of focus for some
petroleum refiner to provide key shore-side services. terminal operators.
Winter 2017 70
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Accurate cargo sampling was an integral part of the One way of mitigating further consolidation within
tendering process for the refiner at a range of its the UK’s remaining oil and gas storage terminals is
terminals. GAC was the first ship agent to perform this through a demonstrable adherence to highly efficient
service, which is usually the role of cargo surveyors. By and safe working practices. Ensuring safety and
taking an extra step in its service offering and proving compliance with all relevant guidelines and regulations
both its expertise and rigorous approach to compliance, is paramount in the sensitive oil and gas sector. In
the company eliminated delays due to non-compliant addition to industry-wide requirements, compliance
product deliveries. varies from terminal to terminal, with different
procedures required for each site. These range from the
Excellence paying dividends creation of risk assessments and new operating policies
All of this comes at a time when the UK’s downstream through to more wide-ranging training programmes.
infrastructure is being constantly reshaped and Long-term contracts, as in the case of Braefoot Bay,
streamlined. Like the oil and gas industry more generally, will also be key to combatting the change that is occuring
conversion and rationalisation in the oil and gas storage within the industry. Service suppliers who gain the trust
markets has emerged as a defining factor to consider in of producers and operators by consistently delivering
order to cut costs and deliver value in a period of quality and added value can serve as important stabilising
dramatic industry change. factors, providing peace of mind in uncertain times.
Often, though, changes in the oil and gas storage
market are driven by geography rather than wider market Conclusion
pressures. Companies are now keen to have a stronger The tanks and terminals market remains in constant
focus on specific geographic areas such as Braefoot Bay, flux, particularly on the periphery of oilfields where
because this approach provides a cost advantage in prospects are continually being reshaped by
terms of logistics, allows for easier management of macro-economic forces. A calm hand on the rudder,
supply chains, and can reduce capital expenditure. These providing assurances of consistent timeliness, quality
measures have allowed the industry to remain resilient and compliance over long periods, forms part of the
– and industry players have a part to play in ensuring firm foundation on which the industry can stand as it
that this resilience continues. tackles the challenges to come.
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Winter 2017 72
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