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TSM octnov 2021 Vol 17 Issue 6 HR

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Oct/Nov 2021 | Volume 17 | Issue 06
VOPAK GROWS IN INDIA
GROWTH IN TAIWAN
COVID-19 AFTER-SHOCK
In partnership with Aegis, Vopak
speaks exclusively about its latest
investments in LPG
Stolthaven tells all about its goal
to provide high quality bulk liquid
storage in Taiwan
China’s economy weathered the
COVID-19 storm but there are still
pressures to face
New thinking.
New possibilities.
Established 2005. Trusted. Valued. Influential.
ACCESS AND MANAGE YOUR PROCESS DATA
ANYTME, ANYWHERE
8810 RTU Key Features
• Ethernet enabled, provides high-speed
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• Industry standated OPC UA
• Modbus for host or field integration via Serial RTU,
Modbus TCP, or Modbus over TCP
• Channels can be configurred as Modbus Slave or
Master
• Supports up to 400 tanks
• Supports up to 24 communication channels
• Digital input/output for alarms, monitoring and control
•
•
•
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Intelligent scanning based on tank activity
Offline configuration functionality
Pre-configured dianostics built-in
Interfaces with multiple different manufacturer’s tank
gauging devices
• Optional tank calculations based on the latest API
standards
• Supports remote firmware upgrades and file transfers
• Includes the VeRTUe browser-based configuration
application
Add-on modules: Serial, GPU Bi-Phase Mark, Digital I/O, Mark/Space, Tankway, and Analog Input
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UP FRONT CONTENTS
CONTENTS
Oct / Nov 2021 | Volume 17 | Issue 06
UP FRONT
04 Contributors
32
06 Comment
TERMINAL NEWS
08 Europe
14 The Americas
17
Africa & the Middle East
20 Asia Pacific
28 Incident report
29 Tank terminal update
34
EXCLUSIVE INTERVIEWS
32 A long-term vision for India
Vopak India managing director Deepak Dalvi discusses the company’s partnership
with Aegis Logistics for LPG in India
34 Local knowledge meets global partners
Stolthaven Terminals president Guy Bessant tells Tank Storage Magazine about
the company’s planned new terminal with Revivegen in Taiwan
MARKET ANALYSIS
37 COVID-19 in China – one year on
China’s economy weathered the COVID-19 storm but there are still pressures
to face
37
40 Asia to remain a growing sink for the crude market
FGE’s Grayson Lim reports on the trends in Asia’s crude markets
42 The route to inclusion is not exclusion
Allison Newell explains the importance of corporate social responsibility (CSR) and
the tools and approaches needed for a truly diverse workplace
40
PAGE 01
UP FRONT CONTENTS
45
TECHNICAL FEATURES
48
44 Technical news
46 Centralising asset data management in the process industry
CEA software can track, manage and visualise all integrated data sources
48 The broad consequences of a spill
What are the legal and other implications of a spill?
50 Tank cleaning and inspection – performance through automation
ATPL’s robots offer proven non-person entry cleaning and inspection of on-line
aboveground storage tanks across Asia
52 Faster than ever
Tank Storage Award winner Toptech Systems explains what it can offer to the whole
petroleum supply chain
54 Streamlining tank inspections with visual feedback
Optically activated pigments highlight areas in need of repair, explain Justin Hair and
Michael Harrison from Sherwin-Williams Protective & Marine
63
56 HSE simplified
Integrating HSE and maintenance into an enterprise asset management (EAM)
system is the key to assured compliance, says Ultimo’s Chris van den Belt
58 W Energy software transforms Phillips 66 operations
Michael Ferrante from W Energy Software discusses digital oilfield advancements in
tank storage accounting and measurement
60 Helping fuel oil distributors to improve profitability
Nick Hawkins from Kingspan on why companies shouldn’t miss out on new tank
telemetry technology
62 Microbiological contamination – reducing risk in a pandemic
Mark Busch at Conidia Bioscience looks at how single use immunoassay fuel test
kits can help
64
64 Ransomware and industrial control systems
Chris van den Hooven from Hudson Cybertec explains how organisations can
protect themselves against ransomware attacks
67 Physical security in the blind spot
Security professional Duane Jones on the importance of ensuring that physical and
cyber security complement each other
70 Tank alarm monitoring to keep kenya fuelled
Ian Loudon from tank monitoring alarm specialist Omniflex looks at how alarm
systems are used for managing tank overfill conditions
73 Lightning risk mitigation – more needs to be done
Dr Akihiro Wakabayashi, CTO of Critical Facility Group, looks at why tank fires
and explosions are still happening and what can be done to reduce the risk
AT THE BACK
76 Advertisers index
76 Social storage: Most liked posts this month
PAGE 02
67
UP FRONT CONTRIBUTORS
CONTRIBUTORS
Oct / Nov 2021 | Volume 17 | Issue 06
PUBLISHER
CEO EASYFAIRS UK & GLOBAL
Margaret Dunn
+44 (0)20 3551 5721
[email protected]
Matt Benyon
+44 (0)20 3196 4310
[email protected]
DEPUTY EDITOR
Helen Tunnicliffe
+44 (0)20 3196 4402
[email protected]
HEAD OF SALES
Sophie McKimm
+44 (0)20 3196 4356
[email protected]
Oct/Nov 2021 | Volume 17 | Issue 06
VOPAK GROWS IN INDIA
GROWTH IN TAIWAN
COVID-19 AFTER-SHOCK
In partnership with Aegis, Vopak
speaks exclusively about its latest
investments in LPG
Stolthaven tells all about its goal
to provide high quality bulk liquid
storage in Taiwan
China’s economy weathered the
COVID-19 storm but there are still
pressures to face
SUBSCRIPTION RATES
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€250. Individual back issues can be
purchased at a cost of €45 each.
CONNECT WITH US
INTERNATIONAL
SALES MANAGER
David Kelly
+44 (0)20 3196 4401
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@tankstorageinfo
Tank Storage Magazine
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+44 (0)20 3196 4282
[email protected]
DATABASE MANAGER
Alison Church
+44 (0)20 3196 4305
[email protected]
Established 2005. Trusted. Valued. Influential.
Tank Storage Magazine
SENIOR SALES MANAGER
Matthew Barlow
+44 (0)20 3198 4380
[email protected]
New thinking.
New possibilities.
CONTACT
Front cover courtesy:
Singapore-based Advance Technic.
New Thinking, New Possibilities
T +44 (0)20 3196 4300
F +44 (0)20 8892 1929
[email protected]
www.tankstoragemag.com
Easyfairs
2nd Floor, Regal House
70 London Road Twickenham
TW1 3QS
United Kingdom
model in sub-saharan africa.
introducing the independent storage
Oiltanking matola explains how it is
as it explores gas storage.
is ensuring greater energy security
The sharjah national oil corporation
model in sub-saharan africa.
introducing the independent storage
Oiltanking matola explains how it is
IN A CAPTIVE MARKET
AN INTERNATIONAL CONCEPT
NEW GAS CHAPTER
SPEARHEADING THE UAE’S
IN A CAPTIVE MARKET
AN INTERNATIONAL CONCEPT
ISSN 1750-841X
Aug / Sep 2019 | Volume 15 | Issue 04
Tank Storage Magazine, (ISSN 1750-841X) is published seven times a year (in February, March, May, August, September, October and November)
by Easyfairs UK Ltd, 2nd Floor, Regal House, 70 London Road, Twickenham, TW1 3QS, UK.
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PAGE 04
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UP FRONT COMMENT
ARE YOU THE TERMINAL
OF THE FUTURE?
THE STORAGE industry is changing
faster than ever. This issue is
littered with news of new projects and
investments surrounding the storage and
handling of ammonia, hydrogen, biofuels,
LNG, carbon dioxide and more besides.
To recognise this shift, the Global
Tank Storage Awards has introduced
the ‘Terminal of the Future’ award.
This award will be presented to the
storage terminal that is demonstrating
its dedication to preparing for the
energy transition, in terms of research,
investment and forward thinking.
This terminal will be looking ahead to
the integration of new future fuels as
well as meeting the demands of the
current supply chain and introducing
sustainability initiatives to its existing
infrastructure.
The winner of this award will be
chosen exclusively by the tank storage
community, with voting opening in 2022.
PAGE 06
The winner will be revealed during the
gala dinner and ceremony on 8 March
2022 in Rotterdam.
As well as the Terminal of the Future
Award, the tank storage sector will also
vote on the Safety Excellence Award and
Terminal Innovation award – looking at
terminals’ commitment to implementing
new technologies and safety best
practices. This is on top of a whole range
of categories celebrating successes for
terminal suppliers and ports, ranging
from the Port of the Future Award to the
Safety Technology Award.
We urge you to be recognised for your
achievements and enter today at
www.tankstoragemag.com/awards.
Best wishes
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TERMINAL NEWS EUROPE
TERMINAL NEWS:
EUROPE
Turkey
STOLTHAVEN AND
RÖNESANS TO BUILD
TERMINAL IN TURKEY
Stolthaven Terminals has formed
a partnership with Turkish
construction and real estate
company Rönesans Holding to build
a new greenfield terminal in Ceyhan,
Adana, Turkey.
who have expressed an interest in the
import and storage of LPG. The company
expects to make a final investment
decision is expected in Q4 2021, subject
to final internal and external approvals.
‘The terminal will initially focus on the
safe and efficient handling and storage
of industrial gases, but early market
studies also indicate that there is potential
to develop chemical storage capacity
to service the eastern region of Turkey,
which is currently serviced mainly by
trucks from the west of the country. The
investment in Turkey, a country with a
growing economy and strong demand for
chemicals, would be complimentary to
our existing global network and increase
the reach of the supply chain solutions
that we are able to offer our customers,’
says Stolthaven president Guy Bessant.
Rönesans is currently developing the
Ceyhan Petrochemical Industrial Zone.
The first facility being built onsite will
be Ceyhan Polipropilen Uretim, which
will produce 450,000 tpa of KTA
polypropylene, using LyondellBasell’s
Spheripol technology. Stolthaven’s new
terminal will initially serve this facility.
Stolthaven says that additional storage
capacity will likely be added during the
first phase of development customers
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PAGE 08
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TERMINAL NEWS EUROPE
The Netherlands
GATE LNG TERMINAL
TO EXPAND CAPACITY
Gate Terminal in Rotterdam, the
Netherlands, is to expand its LNG
capacity by a further 1 billion m3
per year as part of its longstanding
collaboration with Uniper.
Alongside a previously announced
expansion of 0.5 billion m3, the total
capacity of the Gate Terminal will be
taken to 13.5 billion m3 per year, once the
expansion work is complete. The new
send-out capacity will be available from
1 October 2024.
Andreas Gemballa, director LNG at
Uniper, says that once the expansion
is complete, Uniper will be the largest
capacity holder at the Gate Terminal,
with a capacity of 4 billion m3 per year
under a long-term contract. Uniper has
seen growth in its LNG portfolio on the
commodity and shipping sides. It has
seven LNG vessels under long- and
mid-term charters. Gate is growing in
importance to Uniper as a small scale
LNG hub, and it expects to load
3 TWh onto trucks and barges by the
end of 2021.
‘LNG trading activities have grown
significantly from less than 30 cargoes
in 2016 to more than 300 to date this
year. 80% of our cargoes have been
traded in the Pacific Basin. Our portfolio
emphasises flexibility which is diversified
across all dimensions including pricing
indices, incoterms and geography,’
says Gemballa.
The Netherlands
HORISONT AND
KOOLE SIGN MOU FOR
AMMONIA TERMINAL
Norwegian clean energy company
Horisont and Dutch firm
Koole Terminals have signed a
memorandum of understanding
(MoU) to build a blue ammonia
terminal at the Port of Rotterdam in
the Netherlands.
The new terminal will support the
distribution of blue ammonia produced
from the Barents Blue project, Europe’s
first large-scale blue ammonia production
facility. Horisont recently signed a
cooperation agreement with Barents
Sea offshore oil and gas producers
Equinor and Vår Energi to develop the
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gas and water, powered by renewable
energy. More than 99% of the CO2
produced during ammonia manufacture
will be captured and stored in the Polaris
reservoir offshore northern Norway.
Horisont and Koole will initially explore
establishing a strategic arrangement
for storing the ammonia. The MoU
also includes developing technical and
commercial conceptual models for
storing ammonia products, and services
solutions and technologies for further
distribution, to meet forecast demand in
Northwest Europe.
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PAGE 09
TERMINAL NEWS EUROPE
Spain
EXOLUM WIN4H2
ALLIANCE TO
BUILD FIRST GREEN
HYDROGEN PLANT
Spanish diversified terminal
company Exolum is to invest almost
€2 million to build its first green
hydrogen production plant next to
its existing facility in San Fernando
de Henares – Torrejón de Ardoz, near
Madrid in Spain.
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The hydrogen plant is the first project
under the new WIN4H2 alliance set up
by Exolum, Spanish electricity company
Naturgy and Spanish gas company
Enagás to study hydrogen mobility and
transport schemes in Spain. The three
companies aim to create renewable
hydrogen supply corridors, with supply
points at most 300 km apart across the
whole of Spain, establishing national
logistics routes with guaranteed supply.
The plans include developing a network of
50 hydrogen stations for consumers. The
companies expect that 4,000-7,000 tpa
of green hydrogen will be available from
generation facilities in the early stages of
the scheme.
The plant will initially product 60 tpa of
green hydrogen, and will use propriety
microelectrolysis technology from
Fusion Fuel. Fusion Fuel’s process uses
a specially designed concentrated
photovoltaic (CPV) solar panel to harvest
all available electrical and thermal energy
from the sun. The CPV converts 40%
of energy into electricity, which powers
electrolysis to split water into hydrogen
and oxygen in Fusion Fuel’s miniaturised
proton exchange membrane (PEM)
electrolyser. The remaining 60% of heat
energy pre-heats the feed water and
reduces the electrical energy required to
split the water.
The plant, which is expected to be
operational by the second half of 2022,
will also serve as a demonstration of
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PAGE 10
TERMINAL NEWS EUROPE
the technology. It is the first sale Fusion
Fuel has made of its technology to a
third party. The hydrogen is intended for
hydrogen refuelling stations. If demand
increases, the plant’s output will also
increase.
Norway
ODFJELL WINS
TWO SUSTAINABLE
BUSINESS AWARDS
‘Conversations are already being held
with potential hydrogen users, who have
expressed their interest in accessing
a fixed facility for the supply of green
hydrogen in the region, thus supporting
their plans to incorporate such vector
into their heavy vehicle fleets, both buses
and lorries,’ says Andrés Suarez, global
strategy and innovation lead of Exolum.
Russia
RUSSIAN SEA
TERMINALS TO FACE
NEW INSPECTIONS
The Federal Environmental,
Industrial and Nuclear Supervision
Service of Russia (Rostechnadzor)
will carry out unscheduled
inspections of 73 seaport terminals
handling oil and petroleum products.
Rostechnadzor’s press service told
Russian state news agency TASS that
Russian deputy prime minister Victoria
Norwegian terminal and shipping
company Odfjell has been award the
EcoVadis gold sustainability rating
and has been ranked as number
one among its industry peers by
Sustainalytics,
Abramchenko had ordered the new
field audits in the wake of an oil spill at a
marine terminal owned by the Caspian
Pipeline Consortium on the Black Sea in
August 2021. Rostechnadzor inspectors
will assess compliance with mandatory
safety requirements for the throughput
and storage of oil and petroleum
products, including the facility’s ability to
deal with accidents.
EcoVadis rates global supply chains
on sustainability in more than 75,000
companies across more than 200
industries in more than 160 countries,
monitoring how a company performs
on 21 corporate social responsibility
(CSR) criteria in four main areas –
environment, labour and human rights,
ethics, and sustainable procurement.
The regulator passed the list of 73
facilities to be inspected to the Russian
government office on 20 August 2021,
and it was signed by the head of the
service Alexander Trembitsky on 27
September 2021.
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PAGE 11
TERMINAL NEWS EUROPE
UK
NAVIGATOR
TERMINALS, 8 RIVERS
COLLABORATE ON CO2
AND H2 HANDLING
UK bulk liquid firm Navigator
Terminals is to work with US
company 8 Rivers Capital to assess
opportunities for the transport,
storage and handling of carbon
dioxide, hydrogen and ammonia.
Navigator is looking towards the energy
transition is exploring how to facilitate
the ship transfer of CO2 emissions and
handling low carbon fuels. 8 Rivers,
meanwhile, is a key participant in the
proposed Whitetail Clean Energy Net Zero
power station at the Wilton International
site in Teesside, UK, which will make
use of a semi-closed loop technology
with oxycombustion to burn gas cleanly
and, carbon capture and storage (CCS)
technology. 8 Rivers’ UK group is a
clean energy and clean fuels technology
developer, including the 8RH2 process
which produces clean hydrogen and
ammonia with full carbon capture.
The project team will look at Navigator’s
existing network of assets, which includes
more than 1.28 million m3 of storage, a
deepwater jetty and rail handling facilities,
to assess its potential for handling CO2,
hydrogen and ammonia. Navigator’s
own Teesside terminal is fully integrated
into the UK’s largest chemical cluster
in Teesside, which includes the Wilton
site, and can rapidly scale to support the
industry’s decarbonisation efforts. Due to
the chemical cluster, its proximity to the
depleted gas fields of the North Sea, and
existing pipeline connections, Teesside
is being touted as an ideal CCS hub for
the UK. Navigator’s terminals could be
used to store produced CO2, hydrogen,
or ammonia, before transport via ship or
pipeline.
Germany
CHEMPARK BLAST
LIKELY CAUSED BY
CHEMICAL REACTION
The first interim report into two
explosions and a subsequent
tank farm fire at Currenta’s waste
disposal centre at the Chempark site
in Leverkusen, Germany, which killed
seven people, has found that the
incident was probably caused by a
runaway chemical reaction.
Tank three, which contained liquid
chemical waste, exploded at 9.37am
on 27 July 2021, leading to a second
PAGE 12
explosion, which sparked a fire in a
neighbouring tank farm containing
chlorinated solvents. Seven workers were
killed and 31 injured. Local residents were
told to stay inside with windows closed.
The blasts were heard more than 40 km
away. Around 300 firefighters attended
the incident and took several hours to
extinguish the fire.
The initial report was released by the
Cologne district government. Its experts
concluded that the waste liquid in tank
three was held at too high a temperature,
which led to a chemical reaction and
an exponential increase in temperature
and pressure that was too rapid to be
dissipated by the tank’s safety devices.
The pressure exceeded the design
pressure of the tank, which exploded.
This initial explosion caused the waste
liquid and heating oil previously pumped
around the tank to mix with air, igniting
and causing the second explosion that
led to the tank farm fire.
Customised
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Currenta managing director Hans
Gennen says the results match the
company’s own findings. Currenta is
carrying out internal investigations and
monitoring. The public prosecutor’s office
and the Cologne police have opened a
manslaughter investigation.
Spain
EXOLUM APPOINTS
ROSA GARCÍA AS
CHAIRWOMAN
Spanish terminal company Exolum
has appointed Rosa García as its
new chairwoman, replacing José Luis
López de Silanes, who is retiring and
will now become honorary chairman.
García is the first woman to hold the chair
in almost 100 years of the company’s
history. She has more than 30 years of
experience in industries such as energy,
infrastructures and IT, including as
director of corporate strategic projects
at Microsoft in the US, and as president
of Microsoft Iberia for eight years. García
was chairwoman of Siemens from 20112018 and has over a decade of experience
in non-executive management positions
in IBEX-listed companies such as
Banesto, Acerinox and Bankinter. She is
currently also a board member at Mapfre,
EDPR and Sener.
Essential advantages
with Körting
tank mixing systems:
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•
•
low energy input
no sealing problems
low investment costs
no unmixed dead zones
wear-resistant operation
no maintenance in the tank
complete mixing of tank content
optimisation with (CFD)
Computational Fluid Dynamics
López de Silanes joined the company,
then called CAMPSA, in 1971. He
will retire when he turns 75. In his 16
years as chairman, he oversaw the
company’s various modernisation and
internationalisation plans and changes in
the shareholding structure. He then led
CLH’s transformation into today’s Exolum.
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koerting.de
TERMINAL NEWS THE AMERICAS
TERMINAL NEWS:
THE AMERICAS
66 is seeking to reducing its refining
footprint and boost investment in
renewable diesel, hydrogen and electric
vehicle battery materials.
US
PHILLIPS 66’S
LOUISIANA REFINERY
COULD BECOME A
TERMINAL
Neither Phillips 66 nor Hilcorp has
commented on the rumour.
US oil company Hilcorp is
considering buying Phillips 66’s
255,600 bpd refinery in Alliance,
Louisiana, US, to convert it into an oil
terminal, according to reports.
Four anonymous sources told Reuters
that a buyer from Hilcorp would visit the
facility. Phillips 66 put the refinery up for
sale in August 2021. The refinery was
damaged by flooding during Hurricane
Ida, after a protected wall collapsed. A
Phillips 66 spokesperson told Reuters
that the company plans to repair the
damage and restart the refinery. Phillips
US
SHELL EXITS PERMIAN
WITH US$9.5 BILLION
CONOCOPHILLIPS DEAL
Shell Enterprises has sold its
business in the Permian basin in
the US to ConocoPhillips for
US$9.5 billion (€8.1 billion) in cash.
Shell’s Permian assets cover around
225,000 acres (91,000 ha), which
produce 175,000 boe per day. The
transaction also includes more than
600 miles (966 km) of operated
crude, gas and water pipelines and
infrastructure. The company is seeking
to create a more focussed portfolio
through its Powering Progress strategy
to take the company through the energy
transition. It says it will use the proceeds
of the sale to fund US$7 billion in
shareholder distributions.
ConocoPhillips chairman and CEO
Ryan Lance describes its purchase as
‘highly accretive’, and consistent with
the company’s ‘Triple Mandate’ energy
transition plan to responsibly produce
energy to meet transition demand,
generate compelling returns on and of
capital, and achieve Paris-aligned targets
and 2050 net zero ambition.
The deal is expected to close in Q4 2021,
subject to regulatory approval and
customary closing conditions.
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TERMINAL NEWS THE AMERICAS
British Virgin Islands
FURTHER WOE AT
LIMETREE BAY WITH
STAFF CUTS
Limetree Bay Terminals on St.
Croix in the British Virgin Islands
has announced that it will cut its
workforce by 28% as it seeks to
remain competitive following the
closure of Limetree Bay Refinery.
The company says that 35 staff members
will lose their jobs, and their last day will
be 12 December 2021. It has met with the
affected employees.
‘Reorganising Limetree Terminals
will allow us to streamline operations
and better position us to achieve the
company’s business objectives,’ says
Jeff Rinker, Limetree Bay CEO. ‘This will
enable us to continue to serve the St Croix
community as a provider of good jobs as
well as work for local business partners.’
The terminal recently reached a financing
agreement with AMP Capital to ensure its
continued operations.
Brazil
BRAZIL TO AUCTION
TERMINAL LEASES ON
19 NOVEMBER
Brazil’s National Waterway
Transport Agency (ANTAQ) is to
auction the leases for two bulk liquid
terminals in the Port of Santos on
19 November 2021.
Brazil’s Ministry of Infrastructure says
that it will be the biggest port lease for
20 years. The Port of Santos requires
expansion to meet growing demand. Both
lease contracts will last for 25 years, and
the terminals are expected to focus on
liquid and gaseous bulk, especially fuel.
Terminal STS08 covers an area of
168,324m². ANTAQ says that site will
require an investment of around BRL
260.6 million (€42.4 million), and will
generate BRL 3.152 billion in gross
revenue over the contract period.
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Terminal STS08A covers an area of
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require an investment of around BRL
678.3 million (€42.4 million), and will
generate BRL 7.207 billion in gross
revenue over the contract period.
Both terminals are currently operated
by Transpetro, a subsidiary of state
oil company Petrobras. However, the
Brazilian government is seeking to reduce
the influence of Petrobras to create more
competition and to lower costs.
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PAGE 15
12.10.2021 10:54:00
TERMINAL NEWS THE AMERICAS
US
HONEYWELL AND
UNITED INVEST IN
ALDER, UNITED SIGNS
HUGE SAF DEAL
US firm United Airlines and US
technology company Honeywell
have made a joint multimillion-dollar
investment in cleantech company
Alder Fuels, which produces
sustainable aviation fuel (SAF).
As part of the investment, United is to
buy 1.5 billion gallons (5.68 billion L) of
sustainable aviation fuel (SAF) over 20
years, the largest SAF purchase deal ever
announced by an airline. United says
that it is one and a half times the size of
the rest of the world’s airlines’ publicly
announced SAF commitments combined.
Its investment in Alder will company
from United Airlines Ventures, a venture
fund it set up to invest in start-ups, new
technologies and sustainability concepts
to help United meet its goal of net zero
emissions by 2050, without relying on
traditional carbon offsets.
Alder converts abundant biomass
such as forest and agricultural waste
into sustainable low-carbon, drop-in
replacement crude oil. Alder’s technology
will be combined with Honeywell UOP’s
Ecofining process to produce SAF. The
technology is traditional hydroprocessing
technology, adding hydrogen to remove
oxygen from the feedstock then refining
it into a bio-synthetic paraffinic kerosene
(bio-SPK), called Green Jet Fuel by UOP.
It can currently be blended at levels
up to 50% as a drop-in replacement
for conventional jet fuel, and meets all
necessary jet fuel specifications. The
partners’ goal is to produce bio-based
SAF that can be used as a 100% drop-in
replacement for conventional petroleumbased jet fuel. The partners hope to
commercialise the technology by 2025.
The use of waste biomass enables Alder’s
production process to be carbon negative
over the fuel’s lifecycle.
‘Aviation poses one of the greatest
technology challenges for addressing
climate change and SAF has
demonstrated the greatest potential.
However, there is insufficient raw material
to meet demand,’ says Bryan Sherbacow,
CEO of Alder Fuels. ‘Alder’s technology
revolutionises SAF production by
enabling use of widely available, low-cost
and low-carbon feedstock. The industry
is now a major step closer to using 100%
SAF with our drop-in fuel that accelerates
the global transition to a zero-carbon
economy.’
PAGE 16
TERMINAL NEWS THE MIDDLE EAST & ARRICA
TERMINAL NEWS:
THE MIDDLE EAST & AFRICA
Ghana
BOST KUMASI
TERMINAL FINDS
PETROLEUM
ADULTERATION
Ghana’s Bulk Oil Storage and
Transportation Company (BOST) has
discovered adulteration in petroleum
products being distributed via truck
from its 87,000 m3 Kumasi storage
facility in Ashanti, Ghana.
Anomalies have been discovered in
recent days during routine tests on
the chemical composition of products.
Tests are carried out prior to loading the
trucks, and upon arrival at destination.
However, on one truck, the product
composition at discharge was found
to be different to that at loading. The
difference was initially discovered on
a standard simple test, and confirmed
by further testing. Subsequent testing
found differences on eight further trucks.
The nine trucks have been impounded
while investigations continue. The driver
of the first truck was taken into custody
while the other eight drivers were sought.
‘BOST wishes to assure the public
that, with the current robust standard
operating procedures (SOPs), no
adulterated product will find its way into
our tanks much less get to the market,’
says BOST in a statement. ‘The company
wishes to further assure the public that,
the reported incident has not affected our
operations in any way and our fuel safety
and security as a country is assured.’
international investment, by ADNOC
and Masdar, in BP’s 1 GW H2Teesside
facility in the UK, which will produce
blue hydrogen and is expected to be
operational by 2030. The first agreement
also includes the development of
decarbonised air travel between the UAE
and UK, although no further details have
been released on how the companies plan
to achieve this.
Under the second agreement, BP and
Masdar will explore opportunities to provide
sustainable energy and mobility solutions
for cities. The companies will consider
storage, energy efficiency, cleaner fuels,
and distributed renewables generation.
which will employ digital technology
and artificial intelligence to improve
operational efficiency.
‘The UK and UAE governments have bold
plans for decarbonisation. The UK is our
home and we have worked in the UAE for
nearly a century. By partnering with the
visionary leaders of ADNOC and Masdar,
we see massive business opportunity
to generate the clean energy the world
wants and needs – and at the same time
revitalise local economies and create the
jobs of the future,’ says Bernard Looney,
BP CEO.
The third agreement is between BP
and ADNOC and will see the companies
work together to decarbonise oil and gas
operation in Abu Dhabi, including carbon
capture, utilisation and storage (CCUS)
hubs. They also plan to use advanced
methane emission detection and
reduction technologies and create
smart decision centres in the UAE,
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BP, ADNOC AND
MASDAR IN CLEAN
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BP, the Abu Dhabi National Oil
Company (ADNOC) and UAE
renewable energy company Masdar
have signed three agreements to
collaborate in the development of
clean and low-carbon energy.
The first agreement, between all three
companies. covers the development of
2 GW of low carbon hydrogen hubs in
the UK and UAE. It could lead to the first
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PAGE 17
TERMINAL NEWS THE MIDDLE EAST & ARRICA
UAE
BROOGE PHASE II
RECEIVES FIRST CARGO
Brooge Petroleum and Gas
Investment Company (BPGIC), a
subsidiary of Brooge Energy, has
officially commenced operations
at its phase II storage facility in the
Port of Fujairah, UAE, which has now
received its first cargo.
The site, which stores clean petroleum
products and crude oil, successfully
completed all testing and commissioning
and received all regulatory approvals.
It is fully contracted. With the opening
of Phase II, BPGIC is the second largest
independent storage operator in the
region, with a capacity of approximately
1 million m3 (6.3 million bbl).
BPGIC has built the facility to the same
standards as its phase I facility, using the
latest technology to minimise operating
costs and maximise performance. The
company says that the design of its
automated storage solutions reduces
product losses as well as offering heating
and blending.
‘This is a major milestone for Brooge
Energy and follows months of careful
planning, construction, contract
negotiations and testing,’ says Nicolaas
L Paardenkooper, CEO of Brooge Energy
and BPGIC, adding: ‘Oil storage in the
port of Fujairah in the Middle East is in
high demand, which has enabled us to
fully contract the entire capacity with
multi-year take-or-pay contracts.’
Mozambique
MONTFORT GROUP
BUYS STAKE IN
MOZAMBIQUE
TERMINAL
Global commodity trading company
Montfort Group has bought a stake in
Matola Terminal de Armazenamento
de Petróleos, an oil products
terminal in the Port of Matola in
Mozambique.
The 59,600 m3 import terminal was
formerly known as Oiltanking Matola,
until it was purchased in June 2021 by
a consortium of Energi Asia DMCC and
Al Braik Investments. It handles mostly
gasoline, gasoil and kerosene. According
to a story from Business Times that
Montfort posted on its LinkedIn page,
Montfort will develop the terminal in
partnership with Energi Asia. The terminal
was commissioned in December 2017 and
being so new, has superior infrastructural
capabilities, safety procedures, equipment
and systems, with minimal maintenance
downtime required.
Acquiring the terminal stake (the size
of which has not been revealed) forms
part of Montfort’s African expansion
plans, and will allow the company to
trade its products in six countries
neighbouring Mozambique. The company
hopes that the combined experience
in its partnership with Energi Asia will
contribute to Mozambique’s commercial
activities and benefit the local and
regional energy sectors.
Angola
OEC WINS CONTRACT
FOR MAJOR ANGOLAN
TERMINAL
Angolan state oil company Sonangol
has awarded the contract to build
its planned Barra do Dande Ocean
Terminal (TOBD) to OEC, a subsidiary
of Brazilian company Novonor.
TOBD, located 60 km north of the Angolan
capital Luanda, will store 580,000 m3 of
gasoline and diesel, and 102,000 m3 of
Specialist fuel infrastructure
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PAGE 18
TERMINAL NEWS THE MIDDLE EAST & ARRICA
LPG. It will cost US$499 million (€421
million) and will be Angola’s largest refined
products terminal. OEC will complete
the storage terminal, marine dock and
associated infrastructure for the import
and export of oil products. The work will
generate 3,500 jobs.
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OEC Superintendent Director for Africa,
Marcus Azeredo says that OEC’s bid was
the most competitive of eight submitted,
due to the company’s expertise.
According to Angolan new agency ANGOP
Sonagol has also signed two a contact
with Angolan consultancy firm SOAPRO
to carry out the environmental impact
study. The signing of the contracts was
witnessed by Angola’s Secretary of State
for Petroleum, José Alexandre Barroso.
MODEL 3100
PRESSURE
VACUUM VENT
Nigeria
DISPUTED TANK FARMS
REOPENED IN NIGERIA
MODEL 8900
TANK
EMERGENCY
VENT
The Nigerian Department of
Petroleum Resources (DPR) has
reopened eight tank farms in
Lagos that were closed on 13
September 2021 by the Lagos State
Physical Planning Permit Authority
(LASPPPA) after a planning dispute.
LASPPPA had claimed that the eight
tank farms – Wosbab Energy Solutions,
Emadeb Energy Services, Mao
Petroleum, Menj Oil, Oceanpride Energy
Services, AA Rano Nigeria, AIPEC Oil and
Gas, and First Royal Oil – did not have
the correct planning permits. All the tank
farms are located in Ijegun-Egba, Satellite
Town, Lagos. The area has 13 tank farms
which receive 35-40% of all petroleum
ports coming into Lagos, Nigeria’s largest
city and the second largest city in Africa.
MODEL 6A00
FLAME
ARRESTOR
Ayorinde Cardoso, the DPR’s zonal
operations controller for Lagos says in
a statement that LASPPPA did not have
the constitutional power to close the tank
farms, as the industry falls under the
Nigerian federal government’s ‘Exclusive
List’, which gives the government
exclusive jurisdiction. The industry is also
protected by constitutional powers under
the Petroleum Act. Cardoso says that as
a result of the Act, all persons engaging
in the importation, handling, storage and
distribution of petroleum, petroleum
products and other flammable oils, are
licenced by the petroleum resources
minister through the DPR.
MODEL 1078
VACU-GARD
’These people are providing service to
the nation and if you disrupt that service
there will be fuel scarcity everywhere,’
says Cardoso. ‘This is why we are taking
proactive action to immediately reopen
the tank farms and if LASPPPA have any
issue with the operators they should
come to us to see how it can be resolved.’
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CAS-264.indd 1
1/21/20
PAGE
19
3:51 PM
TERMINAL NEWS ASIA PACIFIC
TERMINAL NEWS:
ASIA PACIFIC
India
Tawain
HPCL RAJASTHAN
REFINERY ADDING
FOUR NEW TANKS
STOLTHAVEN AND
REVIVEGEN TO BUILD
TAIWAN TERMINAL
HPCL Rajasthan Refinery in
Pachpadra, India, has awarded the
contract for four new cryogenic
double wall storage tanks (DWST) to
Chemie-Tech.
Stolthaven Terminals, a division of
Stolt-Nielsen, has signed a letter
of intent with Taiwanese company
Revivegen Environmental Technology
to build a greenfield terminal in
Kaohsiung Port, Taiwan.
The 45 m diameter tanks will have a
comibined capacity of 96,000 m3 and will
store refrigerated ethylene and propylene.
The outer tank will have an RCC post
tension wall and the inner tank will be
made from 9% nickel steel.
Under the terms of the engineering,
procurement, construction and
commissioning (EPCC) contract, ChemieTech will also construct the associated
facilities such as the vaporisation system,
BOG compressors, heating packages,
cold-blowdown system and in-tank pumps.
It will also be responsible for the tanks’
pile foundations, piping, electrical works,
cathodic protection, instrumentation,
firefighting system and associated
accessories with statutory approvals.
The contract scope covers project
management, residual process design,
detailed design and engineering,
procurement, construction, precommissioning and commissioning with
single point responsibility of above ground,
flat bottom, vertical, full containment type
double wall storage tank.
Revivegen has recently been granted a
land lease at the port. The companies
will now conduct a feasibility study
into the terminal. There is growing
customer demand for bulk liquid
storage in the region, which has driven
Stolthaven’s interest. The companies
expect to make a final investment
decision in Q4 2021, subject to internal
and external approvals.
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PAGE 20
YARA, JERA, IDEMITSU
KOSAN TO STUDY
JAPAN AMMONIA
DISTRIBUTION
Norwegian chemical firm Yara,
Japanese power company JERA
and Japanese petroleum company
Idemitsu Kosan have signed a
memorandum of understanding to
explore clean ammonia bunkering
and distribution in Japan.
Since May 2021, Yara and JERA have
been studying the possibilities of creating
demand for clean ammonia in Japan,
and under the new MoU, will also look
at the potential of ammonia bunkering
and distribution to the industrial sector.
Bringing in Idemitsu Kosan will give
the partners to additional expertise
and an extensive distribution network
for petroleum products, bunkering
capabilities and import terminals.
Under the terms of the MoU, the three
partners have committed to investigate
establishing a domestic ammonia
distribution network at Idemitsu Kosan’s
Tokuyama Complex in Shunan City,
establishing an ammonia bunkering
business at the Tokuyama Complex and
cultivating demand, and optimising the
ammonia fuel shipping supply chain
TERMINAL NEWS ASIA PACIFIC
for domestic use. The partners will also
discuss cooperation with other major
players in power generation, agriculture
and oil refining.
There is increasing interest in the use of
ammonia as a carbon-free fuel for the
energy transition, particularly in Japan,
where the Ministry of Economy, Trade
and Industry (METI) is looking to develop
a market and supply chain for the use of
ammonia as a fuel, expanding its use to
3 million tpa by 2030.
China
CHINA CERTIFIES FIRST
CARBON NEUTRAL
PETROLEUM SHIPMENT
The Shanghai Environment and
Energy Exchange (SEEE) has
certified a shipment of petroleum
from Sinopec, Cosco Shipping and
China Eastern Airlines as carbon
neutral.
It is China’s first shipment of full life cycle
carbon neutral petroleum. The
30,000 tonnes of crude oil came
from Sinopec International Petroleum
Exploration and Production Corporation’s
share of oil in Angola. Its trading arm
transportation, storage, refining and
product consumption. Sinopec, Cosco
Shipping and China Eastern Airlines
each offset the emissions from their own
activities related to the shipment.
Unipec imported the oil. Cosco Shipping
shipped the oil more than 9,300 nautical
miles from Angola to Ningbo Zhoushan
Port in Zhejiang province, China. From
there the oil went to the Sinopec Gaoqiao
Petrochemical Corporation refinery.
The three companies aimed to jointly
develop an a ‘new model of green
transportation,’ with a cross-industry,
full-cycle and zero-emission path, as
China’s transport and energy sectors
seek to achieve carbon neutrality.
The carbon emissions from the
petroleum’s whole life cycle have
been offset through a combination of
energy saving and emission reduction
strategies, and Chinese Certified
Emission Reduction (CCER) carbon
credits. China Classification Society
Certification Company (CCSC) acted
as the third-party verification agency. It
measured the carbon dioxide produced
throughout the entire life cycle of the
petroleum, including oil exploitation,
Sinopec will offer carbon neutral gasoline
and diesel to the public at selected fuel
stations later in 2021. It is also supplying
5,417 tonnes of jet fuel to China Eastern
Airlines for carbon neutral flights.
China
CHINA APPROVES
SINOPEC LONGKOU
LNG PROJECT
China’s National Development and
Reform Commission has approved
Sinopec’s planned Longkou LNG
terminal at Yantai Port in Shandong
Province, China.
The terminal will cover an area of 84.5 ha.
Sinopec will construct four 220,000 m3
storage tanks, and a berth capable of
handling ships with a capacity of up to
266,000 m3 of LNG. The terminal will
have a transfer capacity of 6 million tpa
and gasification export facilities with a
capacity of 34 million m3 per day.
PAGE 21
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TERMINAL NEWS ASIA PACIFIC
Australia
Philippines
BP CONSIDERING
GREEN HYDROGEN FOR
KWINANA
PHILIPPINES TO
ESTABLISH STRATEGIC
PETROLEUM RESERVE
BP has begun a feasibility study at
its Kwinana refinery to look at using
the site to produce green hydrogen.
The Philippines Department of
Energy (DOE) has unveiled plans
to establish a strategic petroleum
reserve (SPR) for the country.
The company announced in November
2020 that it would cease refining at the
Kwinana refinery as it was no longer
economically viable, and that it would
convert the site into an import terminal.
BP now has its sights on repurposing
the former refinery complex as an
integrated clean energy hub to produce
and distribute sustainable fuels. It has
already started to develop a plant to
produce sustainable aviation fuel (SAF)
and renewable diesel.
BP believes that a Kwinana energy
hub would be ideally placed to create
Australian green energy chains and
enable Western Australia to meet its
net zero commitments. A clean energy
hub could also offer green alternatives
to the wider Kwinana industrial cluster.
The feasibility study is being carried out
in partnership with Macquarie Capital,
with funding from the Western Australian
government.
The SPR will include stocks of crude oil,
petroleum products, and biofuel. The DOE
says it will help to lessen the Philippines’
vulnerability to disruptions in the supply
and price of imported oil, improving fuel
security and allowing the government
to implement the Targeted Fuel Relief
Program, whereby the government will
provide fuel assistance to marginalised
fuel-consuming sectors affected by crises.
A new circular lays out the
implementation guidelines for the
Philippine Strategic Petroleum Reserve
Program (PSRP), which will be jointly
implemented by the Philippine National
Oil Company (PNOC) and the DOE. PNOC
carried out a feasibility study into setting
up an SPR in the Philippines in 2019.
PNOC will acquire the necessary storage
and blending capacity by construction,
lease, or other acquisition options, based
on the levels specified in the feasibility
French energy major TotalEnergies
has signed a terminal use agreement
with Pertamina subsidiary PT Perta
Arun Gas (PAG) to store LNG at PAG’s
terminal in Lhokseumawe, Indonesia.
The 3 million tpa Arun LNG receiving and
regasification hub has four tanks with
a total capacity of 508,000 m3. Under
the terms of the deal, TotalEnergies will
use two of the four LNG tanks at the
hub, with a total capacity of 207,000 m3.
TotalEnergies will store LNG at the site as
part of its global LNG market strategy.
PAG president Arif Widowo says that the
collaboration with TotalEnergies is in line
with PAG’s vision to become a world-class
LNG hub and regasification company. The
two companies are also exploring longterm collaboration.
China National Petroleum
Corporation (CNPC) has
commissioned four new 160,000 m3
LNG tanks at its Tangshan LNG
receiving terminal which can now
supply gas to an external pipeline.
The terminal is now China’s largest
domestic LNG receiving terminal, with
eight tanks with a combined capacity of
1.28 million m3.
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+31 (0)10 416 54 77
[email protected]
Locations | Netherlands, Belgium,
Singapore, Estonia, USA, Middle East
PAGE 24
TOTALENERGIES
TO USE PERTAMINA’S
ARUN LNG TANKS
CNPC ADDS FOUR NEW
TANKS TO TANGSHAN
LNG TERMINAL
Verwater offers a full spectrum
of industrial and tank related
services to support its clients in
maintenance and construction
works
WWW.VERWATER.COM
Indonesia
China
ENSURING SAFETY,
QUALITY AND
EXCELLENCE
OUR SERVICES
„ Tank Jacking
„ Pipe Jacking
„ Tank Relocations
„ Tank Foundation Works
„ Leak Detection Systems
„ Secondary Containment
study. PNOC will be responsible for
setting up supply contracts to meet the
objectives of the PSRP, and a distribution
chain, either by lease or acquisition, from
the transport logistics down to the fuel
discharge to the end-consumers.
CNPC says that the main construction
project achieved 8.06 million safe labour
hours, with no safety incidents, pollution
incidents, or personal injuries. The
construction work was carried out by
PetroChina Jingtang LNG and Beijing Gas
Group, and broke a number of industry
records. Construction teams completed
the 1,440 pile foundations in just 66 days.
For the first time in China, all four storage
tanks were raised in the same year, with
two raised on the same day. This was
partly due to the use of innovative vertical
seam automatic welding technology.
TERMINAL NEWS ASIA PACIFIC
Malaysia
SUPPORT THE GROWTH
OF ASIA’S LNG MARKET
Petronas Gas calls for LNG market
players to participate in an
expression of interest (EOI) for a new
LNG storage facility in Pengerang,
Johor, Malaysia
As the industry is going into a cleaner
energy landscape and companies
are responding with their strategies
on achieving respective carbon
neutrality targets, awareness in overall
sustainability is also gaining prominence.
Global LNG trade continues to show
consecutive growth as the cleanest fossil
fuel source complementing renewables,
undeterred by COVID-19 related impacts
in terms of its supply and demand. This
presents a sound opportunity for LNG
supply chain market players to ensure its
domestic and global security of supply.
Petronas Gas (PGB) is Malaysia’s
leading gas infrastructure and utilities
company with core businesses in gas
processing, utilities, gas transmission and
regasification. PGB processes natural gas
piped from offshore fields and transports
the processed gas via the Peninsular
Gas Utilisation (PGU) pipeline network
to Petronas’ customers in Malaysia and
Singapore. The company’s two LNG
regasification terminals are located in
Sungai Udang, Melaka (offshore terminal)
and Pengerang, Johor (onshore terminal)
respectively.
Pengerang LNG (Two) (PLNG2), a 65%
subsidiary of PGB, owns, operates and
maintains the onshore LNG
Regasification Terminal in Pengerang
(RGTP), Johor, Malaysia. The terminal
currently features two LNG storage
tanks with a total capacity of 400,000 m3.
The facilities receive vessels carrying
LNG from around the world, offering a
wide range of services which includes
LNG regasification of 490 million scfd,
LNG reloading, and gassing up and
cooling down.
In supporting the anticipated growth
in the LNG market in Asia, PLNG2 is
assessing the feasibility of constructing
a third LNG storage tank through an EOI
exercise. The potential development
of the LNG storage tank located in
Pengerang offers LNG storage capacity
as well as transshipment for long term
periods. Potential customers can
benefit from PGB’s vast experience in
gas transmission and regasification, its
terminal’s strategic location of global LNG
trade routes and availability of existing
terminal facilities. The additional tank
is targeted to be completed and ready
for commercial operation earliest by
Q4 2025, subjected to its final investment
division (FID) date.
To participate: Interested parties are
required to submit their proposals no
later than 30 November 2021 (4pm
Kuala Lumpur time) to PLNG2 via pgb.
[email protected]. The details of
the non-binding EOI are available on PGB’s
corporate website www.petronasgas.com.
PREVENT ODOUR FROM
STORAGE TANKS
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– Odour Filters / Spec /
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Contact – Tommy Christensen,
Co-Founder and CEO
[email protected]
PAGE 25
8 March 2022 | Rotterdam
The Global Tank Storage Awards judges include:
Previous winners include:
Find out more m www.tankstoragemag.com/awards
Hosted by
Nominations now open m www.tankstoragemag.com/awards
INCIDENT REPORT
INCIDENT REPORT
A summary of the recent explosions, fires and leaks in the tank storage industry
11 October 2021
7 October 2021
6 October 2011
BEIRUT, LEBANON
BAYONNE, US
GALVESTON BAY, US
A fire broke out in a gasoline tank
belonging to Lebanon’s army at
the Zahrani oil facility during the
transfer of gasoline from one tank
to another, just after 10am local
time. It took more than two hours
for the fire to be contained by
Lebanon’s civil defence forces. No
casualties were reported, though
a nearby main road was closed in
both directions due to the flames.
Local media reports that at least 25
fire trucks attended the blaze. An
investigation is underway.
International-Matex
Tank Terminals
Marathon Petroleum
No injuries were reported
following a fire at an alcohol tank
at International-Matex Tank
Terminals’ (IMTT) facility in
Bayonne, New Jersey, US. The
fire broke out at around 4.57pm
local time following an explosion
within the tank, and was brought
under control at 6.26pm. The
tank contained approximately
600 gallons (2,271 L) of an
alcohol product. Bayonne crews
and IMTT’s own fire department
tackled the fire. IMTT has not
commented.
An oil tank at Marathon Petroleum’s
593,000 bpd Galveston Bay
refinery in Texas City, US, leaked
for more than six hours, beginning
at 7:30am local time. There were
no injuries. In a filing to the Texas
Commission on Environmental
Quality, Marathon said that the spill
was caused by the failure of a valve
flange. The crude oil was released
into a containment dyke, and
firefighters applied foam to reduce
vapour evaporation. Marathon
estimates the leakage at around
5,000 lbs (2,268 kg).
11 September 2021
DONETSK, UKRAINE
SME INDUSTRIAL
[email protected]
www.smecoupling.com
PAGE 28
Natalya Nikonorova, the foreign
minister of the Donetsk People’s
Republic (DPR), a quasi-state
in Ukraine, claims that a major
explosion at an oil terminal in
Donetsk was a ‘deliberate act
of terror’ by Ukraine. The blast
happened at around 12.30pm local
time, destroying 1,300 tonnes of
oil. The fire was tackled by local
emergency services. DPR first
deputy information minister Daniil
Beznosov said a Ukrainian drone
spotted in the area dropped an
explosive charge. The Ukrainian
government has not commented.
TANK TERMINAL UPDATE
TANK TERMINAL UPDATE:
ASIA PACIFIC
Shandong Province, China
Tangshan, China
Manila, Philippines
SINOPEC
CNPC
AG&P
Products: LNG
Products: LNG
Products: LNG
Capacity: 880,000 m3
Capacity: 640,000 m3
Capacity: 121,200 m3
Construction/Expansion/Acquisition:
China’s National Development and
Reform Commission has approved
Sinopec’s Longkou LNG terminal at
Yantai Port.It will cover an area of 84.5 ha
and have four 220,000 m3 storage tanks,
and a berth for ships with a capacity of
up to 266,000 m3 of LNG. The terminal
will have a transfer capacity of
6 million tpa and a gasification export
capacity of 34 million m3 per day.
Construction/Expansion/Acquisition:
China National Petroleum Corporation
(CNPC) has commissioned four new
160,000 m3 LNG tanks at its Tangshan
LNG receiving terminal. The tanks can
supply gas to an external pipeline. The
terminal is now China’s largest domestic
LNG receiving terminal, with eight tanks
with a combined capacity of
1.28 million m3.
Construction/Expansion/Acquisition:
McDermott’s CB&I won contracts to
build two 60,000 m3 full containment
steel LNG tanks and a 1,200 m3 shopfabricated double wall LNG bullets at the
Philippines LNG site.
Pachpadra, India
HPCL RAJASTHAN REFINERY
Comment:
CNPC says that the main part of the
construction project achieved
8.06 million safe labour hours, with no
safety incidents, environmental pollution
incidents, or personal injuries.
Construction/Expansion/Acquisition:
Chemie-Tech will build four new
cryogenic double wall storage tanks at
the refinery and associated facilities
such as the vaporisation system and intank pumps, as well as the foundations,
piping, electrical works.
Comment:
The work includes project management,
residual process design, detailed
design and engineering, procurement,
construction, pre-commissioning
and commissioning with single point
responsibility of above ground, flat
bottom, vertical, full containment type
double wall storage tank.
Kaohsiung Port, Taiwan
South Korea
J&PRIVATE EQUITY
Products: Ethylene and propylene
Capacity: 96,000 m3
Comment:
CB&I expects to complete the
mechanical work on the LNG bullet by Q1
2022, by Q3 2023 for the first LNG tank
and by Q2 2024 for the second LNG tank.
Products: Petroleum products
Guangdong, China
VOPAK
Products: Petrochemicals
Capacity: 560,000 m3
Construction/Expansion/Acquisition:
Huizhou QuanMei Petrochemical
Terminal Co has awarded a contract
to Vopak for storage and services for
a new liquid product terminal to serve
a new ‘world-scale’ flexible feed steam
cracker project planned by ExxonMobil
(Huizhou) Chemical Co (EMHCC) at
Dayawan Petrochemical Industrial Park.
Vopak will also provide services for the
terminal and jetty through a separate,
wholly owned entity.
Comment:
Vopak will own 30% of the terminal,
including the pipelines connecting the
terminal to the jetty and EMHCC plant.
Investement: KRW 200 billion
(€146.92 million)
Construction/Expansion/Acquisition:
J&Private Equity has bought a 90%
stake in the oil terminals business of
South Korean petroleum and refining
company Hyundai Oilbank.
Comment:
Hyundai Oilbank will invest the
proceeds in ‘eco-friendly future
businesses’ including blue hydrogen and
environmental chemicals.
Qingdao, China
SINOPEC
Products: LNG
Capacity: 320,000 m3
Construction/Expansion/Acquisition:
Stolthaven Terminals has signed a
letter of intent with Taiwanese company
Revivegen Environmental Technology to
build a greenfield terminal in Kaohsiung
Port.
Construction/Expansion/Acquisition:
Sinopec has added two new
160,000 m3 LNG storage tanks to its
Shandong LNG terminal in Qingdao,
China. The new tanks, which complete
the second phase of development at the
terminal, take its total storage capacity
to 594 million m3, and the terminal now
has an annual transfer capacity in excess
of 7 million tonnes.
Comment:
The terminal will be built at the new,
reclaimed port.
Comment:
Sinopec achieved 1.66 million safe
working hours during the project.
STOLTHAVEN/REVIVEGEN
Products: Chemicals and industrial
gases
PAGE 29
TANK TERMINAL UPDATE
Andhra Pradesh, India
Jiangsu, China
Zhoushan, China
CROWN LNG
CNOOC
YANTIAN PORT GROUP
Products: LNG
Products: LNG
Products: Oil
Capacity: 7.2 million tpa
Capacity: 1.62 million m3
Capacity: 3.16 million m3
Construction/Expansion/Acquisition:
The Indian subsidiary of Norway’s Crown
LNG is to build an LNG terminal offshore
Kakinada in Andhra Pradesh, India,
which will operate year-round, including
through the monsoon season. It will be
developed as a gravity-based structure
that will sit on the seabed 11 km offshore
and connect to existing mature pipeline
infrastructure.
Investment: CNY 6.1 billion
(€784.4 million)
Investment: RMB 5.89 billion
(€740.6 million)
Construction/Expansion/Acquisition:
CNOOC has begun construction work
on six new LNG tanks at its terminal in
Binhai Port Industrial Park, each with a
capacity of 270,000 m3.
Construction/Expansion/Acquisition:
Yantian Port Group has bought 90%
of the shares in Brightoil Petroleum’s
Hong Kong division, including Zhoushan
oil storage and terminal facilities. The
terminal is still under development
and once complete, will have 13 berths
accommodating vessels ranging from
1,000 to 300,000 DWT.
Comment:
The FEED contract was awarded to
Aker Solutions. Siemens Energy and
Wärtsilä Gas Solutions will be the key
subcontractors.
Comment:
Completion is expected by the end of
2023 and will take the total capacity of
the terminal to 6 million tonnes.
Kobe, Japan
KAWASAKI HEAVY INDUSTRIES
Guangdong, China
Products: Liquefied hydrogen
Comment:
Yantian Port Group will be responsible for
any further construction costs, up to a limit
of RMB 2.5 billion, with excess deducted
from the overall price. The two companies
will cooperate on construction.
Capacity: 2,250 m3
CNOOC
Products: LNG
Capacity: 1.35 million m3
Construction/Expansion/Acquisition:
CNOOC Gas and Power is adding five
new 270,000 m3 storage tanks to its
Zhuhai LNG terminal, doubling the
processing capacity of terminal to
7 million tpa, in phase II of development
works. The terminal currently has three
storage tanks, each with a capacity of
160,000 m3.
Comment:
Phase II is expected to be operational by
December 2023.
Subic Bay, Philippines
Construction/Expansion/Acquisition:
Kawasaki Heavy Industries has
completed construction work on the
world’s first liquefied hydrogen receiving
terminal. Hy touch Kobe includes a
spherical liquefied hydrogen storage
tank and associated equipment such
as a loading arm system. The tank
has a double-shell vacuum-insulation
structure and will store cryogenic
liquefied at -253°C and one eighthundredth of its initial volume.
Comment:
Hy touch Kobe will be used in a
subsidised demonstration of an
international hydrogen energy supply
chain, to transport liquefied hydrogen
from Australia to Japan, being run by
the CO2-free Hydrogen Energy Supplychain Technology Research Association
(HySTRA)
KIT/ MPIC
Construction/Expansion/Acquisition:
Keppel Infrastructure Trust (KIT) and
Metro Pacific Investments Corporation
(MPIC) have bought Philippine Tank
Storage International (Holdings) (PTSI),
which owns the largest petroleum
products import storage facility in
the Philippines, including three tank
farms and a marine terminal equating
to approximately 36% of the total
import terminal storage capacity in the
Philippines. The tank farms and terminal
cover a total area of 150 ha in the Subic
Bay Freeport Zone.
Comment:
KIT hold 80% of PTSI’s shareholding,
while MPIC holds 20%.
PAGE 30
GULF OIL INTERNATIONAL
Products: Marine lubricants
Construction/Expansion/Acquisition:
Gulf Oil International has bought Ocean
Tankers’ lubricant blending plant,
storage tank farm, terminal facilities and
wharf access in Tuas Port in Singapore.
Gulf Oil, which is part of the Hinduja
Group, will operate the site as a going
concern.
Comment:
Ocean Tankers was placed under interim
judicial management by the courts in
2020, along with several other companies
owned by parent company Hin Leong
Trading, which racked up large debts.
Tianjin, China
Products: Petroleum products
Capacity: 6 million bbl
Tuas Port, Singapore
Shandong, China
QINGDAO PORT
Products: Crude oil
Capacity: 1.04 million m3
Investment: CNY 1.31 billion
(€167.3 million)
Construction/Expansion/Acquisition:
Qingdao Port has taken a 51% stake
in the Haiye oil terminal. The terminal
operating company is currently owned by
Haiye Petroleum, with a 40.8% interest,
Leruite Investment with 49%, and
Yiruiyuan Trading with 10.2%. Following
the transaction, Haiye Oil Terminal will
become a subsidiary of Qingdao Port.
BEIJING GAS GROUP
Products: LNG
Capacity: 1.32 million m3
Construction/Expansion/Acquisition:
Beijing Gas Group (BGG) has signed a
cooperation agreement with France’s
GTT to build six additional 220,000 m3
LNG tanks at its Tianjin Nangang LNG
terminal which will form phases II and III
of development work. GTT is currently
building two 220,000 m3 membrane full
containment tanks for phase I.
Comment:
The terminal is being built as part of
a technological partnership between
France and China which began in
November 2019.
TANK TERMINAL UPDATE
Subic, the Philippines
PILIPINAS SHELL
Products: Crude oil
Construction/Expansion/Acquisition:
Shell’s subsidiary in the Philippines,
Pilipinas Shell, has opened a new oil
import terminal in Subic in the northwest
of the Philippines which can receive
54 million L of products in one shipment.
Protect
your tanks
LaBoratory tested to
withstand 170,000A
Impulse Current
Comment:
Together with its two existing terminals
in the Philippines – Tabangao Terminal
in Batangas and North Mindanao Import
Facility in Cagayan de Oro City – Pilipinas
Shell says it now has a ‘robust supply
triangle’ better placed to respond to
disruptions such as typhoons.
Shanghai, China
CNNC
Products: LNG
Capacity: 400,000 m3
Construction/Expansion/Acquisition:
CNNC has commissioned two LNG tanks
at the Shanghai LNG terminal, which
will increase the storage capacity of the
terminal by 80% and are the largest
single capacity, shallow base LNG
storage tanks in China.
Henan Province, China
CNOOC
Products: LNG
Construction/Expansion/Acquisition:
Chinese state oil company CNOOC is
building two of six new LNG tanks at the
Jiangsu Binhai LNG terminal as part
of an expansion project for natural gas
peak reduction. The two tanks each have
a capacity of 270,000 m3 and will be
operational in 2023.
Comment:
The tanks are being built under a new
development model, under which
regions with natural gas pipeline network
interconnections are encouraged to invest
in the construction of storage facilities
outside of their regions to help open up new
gas supplies in regions with high demand.
Johor and Selangor, Malaysia
FGV
Products: Vegetable oil, basic chemicals
Capacity: 35,600 tonnes
Construction/Expansion/Acquisition:
FGV has completed four tanks with a
Dynamic Bypass Conductor
www.critical-facility.com
total capacity of 10,400 tonnes at its site
in Pasir Gudang in Johor, two tanks with
a total capacity of 5,200 tonnes at its site
in Port Klang in Selangor and is building
nine more with a total capacity of 20,000
tonnes in Tanjung Langsat, Johor.
Comment:
FGV’s bulking and storage subsidiary
FGV Johor Bulkers (FJB) expanded into
handling basic chemicals in 2019 and
expects to handle 80,000 tpa at
Tanjung Langsat.
Weifang and Qingzhou,
Shandong Province, China
Ulsan, Korea
ODFJELL SE
Products: Alcohols, chemicals, acids,
palm fat and lubricant oils
Capacity: 313,710 m3
Investment: US$19 million
(€15.6 million)
Construction/Expansion/Acquisition:
Odfjell SE has reached an agreement to
buy the 24.5% stake in Odfjell Terminals
Korea (OTK) owned by US private equity
firm Lindsay Goldberg. Odfjell now
controls 50% of OTK’s shareholding.
SHANDONG HONGRUN
Products: Crude oil
Capacity: 15.8 million m
Odisha, India
3
Construction/Expansion/Acquisition:
Private Chinese refinery Shandong
Hongrun Group will expand its facilities
in Weifang and Qingzhou, by 20% in
2021, taking capacity to 15.8 million m3,
the equivalent of nine days of Chinese oil
imports. The expansion will help to meet
growing demand from third parties.
Comment:
The Weifeng site currently has a capacity of
12.2 million m3, while the nearby Qingzhou
site has a capacity of 800,000 m3.
NUMALIGARH REFINERY LIMITED
Products: Crude oil
Investment: INR 220 billion
(€256 million)
Construction/Expansion/Acquisition:
Numaligarh Refinery Limited (NRL) has
signed an MoU with Paradip Port Trust
(PPT) and the Dredging Corporation
of India (DCI) to allow work to begin to
reclaim 81 ha of land for its new crude oil
import terminal at Paradip Port.
PAGE 31
PROFILE AEGIS VOPAK TERMINALS
A LONG-TERM
VISION FOR INDIA
Vopak India managing director Deepak Dalvi discusses the company’s
partnership with Aegis Logistics for LPG in India
01
VOPAK has been active in India
since 2011, when it bought CRL
Terminals at Kandla Port in Gujarat
from a local operator, seeing the
potential of the growing Indian market.
The company owns two terminal sites
in the country, a chemical terminal and
a vegetable oils terminal, with a total
capacity of 243,000 m3.
Vopak is now a leading terminal
services supplier in Gujarat, having
invested steadily in the terminals since
acquiring them. The terminals are wellconnected to jetties and equipped to
handle specialised liquid cargoes and
specialised chemicals.
A NEW PARTNERSHIP
Having entered the Indian market, Vopak
was keen to expand in the country, and
has been looking for partnerships with
local firms to do so. It found just such a
PAGE 32
partner in Indian gas, oil and chemical
logistics firm Aegis Logistics, which
owns and operates a network of LPG
and chemical terminals in the country, in
various strategic locations along India’s
coastline. In July 2021, Vopak and Aegis
Logistics announced the formation of
Aegis Vopak Terminals, which would
operate eight LPG and chemical storage
terminals in five Indian ports – Kandla,
Pipavav, Mangalore, Kochi and Haldia.
Aegis Vopak Terminals will be the largest
independent tank storage company
for LPG by capacity in India, and one
of India’s top three chemical storage
companies. The eight terminals between
them have a capacity of 960,000 m3,
and as well as LPG and chemicals, can
also store and handle vegetable oil. The
partnership will target LPG, chemicals
and industrial terminal opportunities.
Tank Storage Magazine spoke to
Vopak India managing director Deepak
Dalvi to find out the motivation behind
the new partnership.
CHOOSING AEGIS
Dalvi explains that Aegis has a proven
track record of conceiving and executing
tank farm assets in India, and that by
combining forces with Aegis, Vopak will
be able to strengthen its existing terminal
network, creating economies of scale.
The selection of Aegis as a partner had
other motivations too.
‘We value a long-term partnership with
Aegis as we share the same values and
beliefs – high standards of conducting
business professionally, and always
putting safety and people first. We
appreciate their commitment and agility,
and how their team is always looking
at ways to provide opportunities for its
people, community and the environment.
We are excited to be a partner of Aegis
PROFILE AEGIS VOPAK TERMINALS
and look forward to creating longer term
value in this cooperation,’ he says.
He says that the companies together
will be able to further improve safety
and sustainability standards, as well as
creating a platform for growth via future
greenfield and brownfield projects. The
new partnership will be of ‘great strategic
and commercial significance’ for both
Vopak and Aegis, Dalvi says.
THE GROWTH OF LPG
A large proportion of households in
India, especially in rural and poorer
areas, still rely on traditional fuels such
as firewood, dung, crop residue, coal
and charcoal for cooking, in inefficient
stoves that have been linked to serious
localised air pollution and poor health,
particularly among women and children
who spend more time in the home. The
Indian government is keen to promote
the use of more modern, cleaner fuels,
such as LPG, as a way to mitigate these
significant problems. As such, the use of
LPG in India is expected to increase in the
coming years, and Aegis Vopak is well
positioned to help meet rising demand.
India is already the second
largest LPG import market
in the world, and is the
largest growth market
globally. It has the
potential to more than
double by 2036, providing
significant opportunities
inclusive and diverse culture is very close
to his heart.
‘This means a culture where people have
a seat and a voice, but also are treated in
an equitable manner. Besides improving
gender diversity, we are working on
various initiatives to drive an inclusive
culture for our diverse team to help them
develop their full potential. This includes
for example, inclusive leadership training
and awareness initiatives,’ he says.
complement the use of solar energy,
Vopak has launched a pilot project in
Singapore using flow batteries to store
and supply green energy at industrial
locations that are not connected to the
grid,’ he says.
Vopak continues to look at improving its
operations from an environmental point
of view.
‘Our ambition is to be the sustainability
leader in our industry and live up to our
purpose: storing vital products with care.
To this end, we believe there are areas
where we can create the most value for
stakeholders and society as a whole by supporting the transition to better,
lighter fuels and low-carbon energies, in
providing a safe working environment, in
preventing air, water and soil pollution,
and in building resilient, sustainable
infrastructure at ports around the world,’
says Dalvi.
For more information:
www.vopak.com
THE FUTURE OF VOPAK IN ASIA
AND BEYOND
‘This is an investment in a growth market
and by joining forces with Aegis we aim
to deliver growth over the next ten years
in line with the new joint venture’s and
India’s ambition for LPG,’ says Dalvi,
adding: ‘The partnership is a strategic
fit to India’s energy transition to cleaner
fuels (LPG) in India.’
Dalvi explains that Vopak as a whole
has a ‘long-term vision’ of the likely
products and infrastructure that society
will need, including the emergence of
new energy systems. In Asia, Vopak is
ideally positioned to take advantage of
opportunities in flow batteries, hydrogen
and ammonia.
India is already the second largest LPG
import market in the world, and is the
largest growth market globally. It has the
potential to more than double by 2036,
which Dalvi says provides significant
opportunities for LPG import terminals.
The COVID-19 pandemic continues to
affect industries in India, with knock-on
effects for Aegis Vopak, which supplies
them. However, in the long-term, Dalvi
says that the business fundamentals
and drivers for the partnership remain
‘strong and valid.’
‘The energy mix is expected to shift
towards cleaner and renewable sources
with solar energy forecasted to gain a
significant share of energy generation
over the next decades. For example, to
www.aegisindia.com
01 Aegis LPG terminal
02 Pipavav railway gantry
02
‘These include population growth in
India and increased urbanisation. We
expect prosperity to increase, with
the continued rise of the middle class,
leading to higher consumption and
increased demand for the products we
handle,’ he says.
INVESTING IN PEOPLE
Aegis Vopak is not only focussed on
business opportunities, it is also looking
at the culture of the business. Diversity
and inclusion are business buzzwords at
the moment, but Aegis Vopak is serious
about making sure the principles are
central to operations. Dalvi says that the
people in the organisation are the most
important to him and that building an
PAGE 33
PROFILE STOLTHAVEN AND REVIVEGEN
LOCAL KNOWLEDGE MEETS
GLOBAL PARTNERS
Stolthaven Terminals president Guy Bessant tells Tank Storage Magazine about
the company’s planned new terminal with Revivegen in Taiwan
01
STOLTHAVEN TERMINALS
recently announced that it has signed
a letter of intent with Taiwanese company
Revivegen Environmental Technology to
build a greenfield terminal in Kaohsiung
Port, Taiwan. The terminal will mostly
handle and store petrochemicals and
industrial gases for Taiwan’s large
industrial sector.
Stolt-Nielsen, Stolthaven’s parent
company, has had a presence in Taiwan
since the early 1990s, on the shipping
(Stolt Tankers) and isotank (Stolt Tank
Containers) side of things, but does
not have a terminal in the country. Tank
Storage Magazine spoke to Stolthaven
Terminals president Guy Bessant to find
out more about the new venture.
02
Revivegen selected Stolthaven, which
was an ideal company to approach, with
its solid Asia Pacific experience – it has
terminals in South Korea, China, Malaysia,
Singapore, Australia and New Zealand
– and its parent company’s existing
businesses in Taiwan.
A GOOD LOCATION
Asia as a whole is of particular interest
to Stolthaven.
Revivegen’s main business is
recycling and process chemicals for
the semiconductor industry, but the
company saw an opportunity.
‘Asia remains a growth market and
although we still expect to see substantial
intercontinental trade from Europe,
Middle East, South America and the US
for chemicals, ethanol, petroleum, gases
and bio-based products, we also expect to
see growing intra-regional trade. Strong
demand for chemicals will continue but
we do also expect to see some countries
focus on the energy transition including
the hydrogen value chain – especially
Korea and Japan which have government
mandates,’ says Bessant.
‘The port of Kaohsiung is moving from
the old port to a reclaimed new port.
At least one of the terminals in that old
port has decided not to relocate, which
has created an opportunity for a new
terminal in the new port to cater for
demand. Revivegen was thinking of doing
it themselves but then realised it would
be prudent to bring in someone who has
done it before,’ explains Bessant.
Taiwan is ideally located to serve Japan,
Korea, China and other Southeast
Asian markets, one of a number of
aspects making Revivegen’s proposal an
attractive one. Taiwan is known primarily
for its semiconductor and electronics
industries, but it is a manufacturingdriven economy with an ever-increasing
need for chemicals. With this existing
industry, and its location, Bessant says
A KNOWN COMPANY
PAGE 34
that it has ‘all the basic fundamentals’ for
business, helped by an entrepreneurial
business culture.
‘Taiwan is one of those countries that
often flies under the radar but when you
investigate its GDP and its industries,
it is quite a good place to invest,’ says
Bessant, adding: ‘From a business
opportunity perspective Taiwan is a good
market. Its chemical industry is quite
strong, both import and export.’
THE KAOHSIUNG TERMINAL
Revivegen has secured an 11 ha plot of
land in the new Kaohsiung Port, and
together with Stolthaven, is working on a
comprehensive feasibility study for the
terminal, with a final investment decision
expected by the end of 2022.
‘The first phase we think will be roughly
100,000 m3 – that’s the demand we’ve
got flagged, based on the products we’re
going to store. Depending on products
and tank sizes, the land we have could
allow us to roughly double the size of the
terminal to 180,000 or 200,000 m3 total
capacity,’ says Bessant.
He says the terminal will be ‘fairly
typical’, with products coming in by ship
and leaving by truck and isotank for the
local market, and coming in by truck and
leaving in bulk via ships for the export
market. There will be multiple jetties to
PROFILE STOLTHAVEN AND REVIVEGEN
cater for ship loading and discharge.
The terminal will have drumming
capability for customers who need to
store products in the warehouse, and
blending facilities. The terminal plans to
offer heating and cooling and nitrogen
blanketing where required.
Stolthaven has a long-term target to
be carbon neutral by 2040. Several of
its sites are already buying renewable
energy, and Stolthaven Singapore was
the first terminal in that country to run
on solar energy. Similar measures will be
considered at Kaohsiung.
Bessant says that the terminal’s
activities will be split roughly 50:50
between bringing in bulk chemicals for
local industry, and exporting chemicals
produced in Taiwan to other places.
Digitalisation is a big topic in tank storage
and Stolthaven has a global project
focussed on automation and Industry
4.0 to improve operational efficiency
and safety. The company is trialling 3D
scanning, using drones for inspections,
and wearable technology for operators,
with success.
‘It won’t be a pure distribution terminal.
The two main Asia distribution hubs
remain Ulsan and Singapore and we’ve
got a presence in both of those, so
we’ve got the distribution hubs covered.
Singapore, for example, is a relatively
small domestic market for chemicals, so
Stolthaven Singapore services countries
nearby. A 40,000 DWT Stolt ship will
discharge into Singapore and then you’ll
see smaller regional ships and isotanks
coming out of the terminal supplying all
the countries around Singapore,’ he says.
‘You could class the terminal in Taiwan as
an in-country terminal.’
The partners hope to have the terminal up
and running by 2023. In future it may also
store bio-based chemicals, or products
such as pyrolysis oil from plastic recycling.
Bessant says that Revivegen’s expertise in
chemical recycling may well play a part in
any decisions in that direction.
FUTURE PROOFING
‘The beauty of the greenfield site in
Taiwan is that from the very beginning
we can plan and future proof it,’ says
Bessant. ‘This is on things like safety
and automation, making sure that the
latest technology is installed. Also,
sustainability is a big topic, so we’ll be
making sure it’s designed with what
will become a bigger focus area. This
includes things like energy use and
emissions and wastewater.’
‘Because of COVID, we’ve accelerated the
use of wearables, including a headset like
a VR headset. We had some engineering
work being done in Moerdijk, and the
engineer who would usually come was
trapped in the UK and couldn’t travel
over. So, we got one of the headsets by
Microsoft and someone went out wearing
it. Because it was Microsoft, it links to
Teams and this allowed the engineer in
the UK to say: ‘look in that direction so I
can look at this,’ and then could look at it
on his screen,’ says Bessant. ‘We are now
developing this terminal in Taiwan, when
I can’t physically get there and a lot of our
engineers can’t get there. We’re having to
be very innovative with technology.’
Stolthaven is also developing handheld
systems, allowing operators to move
away from paper and clipboards. The
devices show checklists and work orders.
‘It’s very much real-time, so if someone
has just loaded a truck and he or she
does a tick on that handheld device, the
system will automatically show that the
order has loaded centrally, rather than
in the old days when someone with a
clipboard and a piece of paper had to
trudge over to an office and hand over
the paperwork and then someone else
had to key it into a computer and all that
sort of stuff,’ says Bessant.
Many of Stolthaven’s customers want
supply chain visibility, and the new
terminal will be able to show real-time
inventories and even connect to
customer systems with electronic data
interchange (EDI).
‘We always use the analogy that if you
buy something today online, pretty much
instantaneously you can see where it is,
whether it’s still in the shop or if it’s going
to be arriving in an hour at your house.
The bulk liquid market is a laggard in that
regard. You generally know when you’ve
loaded a product and you know roughly
where it is somewhere in the world and it
might arrive at a rough date but you don’t
really have much visibility,’ says Bessant.
There may be opportunities to develop
a complete digital ecosystem with
the Kaohsiung Port Authority, with all
terminals providing information centrally
to allow for better planning.
FURTHER EXPANSION
The expansion into Taiwan is just part of
an ongoing growth for Stolthaven, helped
by its sister companies.
‘We have similar products and customers
to the other business units. Synergy is
a word that can be too often used but
there are synergies sometimes between
a customer who ships with us and who
stores with us. In Taiwan we do see
Kaohsiung as a major port call for Stolt
Tankers,’ says Bessant.
While the Taiwan opportunity was
‘fortuitous’, Stolthaven is still actively
looking for further opportunities.
‘We are looking at expansion of existing
terminals and new terminals as well, not
just in Asia but also globally. Anywhere
that customers ask us to build a terminal,
or partner with us, then we’ll approach
that, or in markets where we see existing
or future strong chemical demand. That
might be in developing countries – most
of them lack the infrastructure at the
moment for bulk chemical terminals and
opportunities exist there,’ says Bessant.
03
For more information:
www.stolt-nielsen.com/en/ourbusinesses/stolthaven-terminals
www.revivegen.com.tw
01 Guy Bessant
02 Stolthaven Moerdijk
03 The eastern tank farm at Houston, US,
Stolthaven’s largest wholly-owned terminal
PAGE 35
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MARKET ANALYSIS CHINA
COVID-19 IN CHINA
– ONE YEAR ON
China’s economy weathered the COVID-19 storm but there are still pressures to face
CHINA’S BOUNCEBACK from
the pandemic shocks of early 2020
was one of the few economic success
stories of last year. This year, however,
the world’s second largest economy
has rattled global financial markets as
long-running worries about the huge
debts amassed by its commercial
sector crystallised around the woes of
Evergrande, the cash-strapped Chinese
property giant.
It became clear in recent months that the
Shenzen-headquartered conglomerate
would struggle to meet deadlines on
bond interest payments totalling tens of
millions of dollars. With some analysts
estimating that China’s bloated property
sector accounts for up to 25% of GDP, the
Evergrande saga triggered fears about
contagion not only in the Chinese property
market but also the wider global financial
system. As of early October 2021, the jury
was still out on whether Evergrande was
‘too big to fail’ or whether Beijing would
step in to protect homeowners while
denying the company a bailout in order
to underscore its commitment to rein
in corporate debt. One thing is certain:
the crisis has exposed some of the longstanding fault lines in China’s previously
impregnable growth.
on electricity use and rising prices for
commodities and production bottlenecks.
Indeed, the convergence of rocketing
coal and gas prices, climate targets,
tight energy supplies and an impending
Northern Hemisphere winter has created
what Jeffrey Halley, senior market analyst
for Asia Pacific at OANDA, calls a ‘toxic
cocktail for China’. And, as Halley points
out, where goes China, so goes Asia.
‘If China factories are closing and
reducing production, less resources will
logically be required,’ he says, noting that
the situation, if unresolved, will be another
choke point in already stretched global
supply chains.
Beijing has ordered its state-backed
companies to secure energy supplies no
matter the cost, a move that means other
parts of the world could well see further
issues securing energy supply: natural
gas prices in the UK and continental
Europe have hit a series of record highs
in recent weeks on the prospect of a
shortage of supplies this winter, with
Asia’s growing demand for the fuel one
of the key factors. LNG cargoes, the
main source of gas competition between
Europe and Asia, recently hit a record
high as buyers scrambled to secure
shipments, with buyers in Asia prepared
to pay a premium to lock-in cargos.
A TOXIC COCKTAIL
It’s not just Evergrande that has sent
shockwaves through global markets.
In September, China’s factory activity
contracted for the first time since the
pandemic shuttered plants in February
2020. The retreat in activity came
amid an energy crunch that saw curbs
BETTING BIG ON LNG
The country has been splurging on LNG
infrastructure. Recent months have seen
China National Petroleum Corporation
(CNPC) commission four new 160,000 m3
LNG tanks at its Tangshan LNG receiving
terminal taking combined capacity to
1.28 million m3.
Chinese state oil company Sinopec has
added two new 160,000 m3 LNG storage
tanks to its Shandong LNG terminal in
Qingdao to complete the second phase
of development at the terminal to take its
total storage capacity to 594 million m3,
which it says will ‘lay a solid foundation
for ensuring the stable supply of natural
gas in North China this winter and next
spring’. The third phase of Shandong
LNG will take the total capacity of the
terminal to 14 million tonnes, making it
the largest receiving terminal in China by
the end of 2022.
Chinese state oil company CNOOC has
begun construction on six new LNG tanks
at its terminal in Binhai Port Industrial
Park, Jiangsu, each with capacity of
270,000 m3 . These ultra-large tanks will
be completed by the end of 2023.
Analysts see these investments as key
to ensuring China has the long term
energy supplies to meet growing demand
while also working towards the energy
transition by ensuring the capacity to
import ever greater quantities of LNG.
‘I think China will do whatever it takes to
manage the energy crisis the country
is facing and stop prices spiralling out
of control. Whether it will be enough, is
another thing, but as we’ve seen today
with their orders to state-owned energy
companies to buy at any cost, they are
ready and willing,’ says Craig Erlam,
senior market analyst, UK & EMEA at
OANDA. ‘The leadership will always do
whatever it takes to also protect growth
so if we do see a slowdown this winter as
PAGE 37
MARKET ANALYSIS CHINA
a result of the energy crisis, or a slump in
the property market, I imagine that will
be followed by a loosening of the purse
strings to stimulate growth and achieve
its targets.’
OIL: HEATING UP
The country’s appetite for LNG, however,
has yet to displace its oil habit, which
rebounded with alacrity once the country
re-opened for business last year.
‘China’s oil demand came out of the
pandemic shock faster and better than
that of any other large economy thanks
to the initial and continuous success
at containing the spread of the virus,’
says Claudio Galimberti, senior vice
president of analysis, Rystad Energy. ‘Of
the four transportation sectors, three
have been back to almost normal levels
for more than a year (passenger road
transport, commercial road transport
and maritime) while only aviation is still
well below normal.’
With none of the stationary sectors
(petrochemical, industrial, buildings,
agriculture and non-energy use)
particularly affected by the pandemic,
Galimberti expects China’s oil demand
‘to be back on its normal positive growth
trajectory in 2022’.
According to the Oslo-based consultancy,
China’s aggregate demand was
13.175 million bpd in 2019, slowing to
13.574 million bpd in 2020, and this year
it will beat 14.419 million bpd, before rising
to 15 million bpd in 2022. Indeed, the
Oslo-based consultancy is bullish about
the outlook for the Chinese economy
despite the recent headwinds, forecasting
GDP growth of 8.2% in 2021, partly as a
result of the rebound from the 2.3% of
pandemic-hit 2020, and a more normal
5.4% next year.
China’s recovery against a backdrop of
straitened supply has helped drive the
recent rally in world oil prices, which
topped US$80 a barrel in the last week
of September, their highest level in three
years. Analysts believe that oil prices will
continue to rise amid surging demand
and tight supplies, with Goldman Sachs
predicting a benchmark Brent price of
US$90 before the end of the year.
This inevitably adds further inflationary
pressures on manufacturers and global
supply chains. In what was widely seen
as a move to take some of the heat out
of the market, China has auctioned
off some of its brimming strategic
petroleum reserve (SPR), which was
topped up during the oil price slump of
2020. Analysts at energy consultancy
Wood Mackenzie think the country’s
total SPR capacity is around
330 million bbl, with a current utilisation
rate of 75%. With the inaugural auction
expected to release 7.3 million bbl, about
PAGE 38
half a day’s consumption, it’s unlikely to
have a material impact on global crude
markets.
‘While the impact of China’s virgin
SPR auction on global markets may
be small, it does signal a major shift in
how China likes to employ its SPR and
potentially influence the behaviours of
key suppliers,’ said WoodMac senior
consultant Alex Sun.
It’s a new strategy for China and one
that is likely to keep market watchers on
their toes.
ZERO TOLERANCE
Looking ahead, there are downside risks for
the Chinese economy, such as the still to be
resolved Evergrande crisis and the potential
disruption of further COVID-19 outbreaks
in China. However, Rystad Energy’s
Galimberti says he ‘expects the authorities
to manage these risks successfully’.
Indeed, even as Western economies
claim to have tamed the virus through
vaccination and are prepared to let
infections run through their populations
at high levels, China shows no signs
of backing down from its zero-COVID
stance. In June 2021, COVID-19 infections
meant suspended operations at shipping
hubs in southern China, including
Shenzen and Guangzhou, and in August,
the country shut down a key terminal
at its Ningbo-Zhoushan port, the third
busiest in the world, after a single worker
tested positive. Despite having vaccinated
more than 1 billion people, China is not
easing off its maximum suppression
strategy, having recently built a vast
complex of quarantine rooms to keep the
virus from breaching its borders. This
pro-active response has yielded positive
economic impacts, say analysts – not just
at home.
‘We believe China’s aggressive policy
against Covid to have had positive
knock-on effects on the supply chain,’
says Galimberti. ‘If China had been less
successful at taming the outbreaks in
its territories, the global supply chain
hiccups would have been far more
frequent and deeper than what we have
had so far experienced.’
WINDS OF CHANGE
Looming over all of this, of course,
is the energy transition. Based on
current policies that will bust the Paris
Agreement’s upper limit of 2˚C warming,
analysts at Wood Mackenzie expect the
longer term oil and gas demand outlook
for Asia to remain robust, with the region’s
oil demand only peaking in the mid-2030s
and gas demand growth continuing to
power ahead through to 2050. Should
more aggressive policies be implemented
to meet the 2˚C threshold, then Asia’s
China’s recovery against
a backdrop of straitened
supply has helped drive the
recent rally in world
oil prices
oil demand would fall to about half of
pre-pandemic levels over the same timeframe. Gas demand, however, will prove
more resilient largely due to extensive
coal-to-gas switching in Asia, which
means those newly built LNG terminals
look a good long term bet.
Beijing has committed to carbon
neutrality by 2060 and is pouring money
into renewables. According to Bloomberg
New Energy Finance, China built more
new wind farms in 2020 than the whole
world combined built in 2019 while Wood
Mackenzie’s China wind power outlook
2021-2030 points out that a targeted
grid-connected wind capacity of 689 GW
by the end of 2030 represents 67% of the
global share. Eventually, wind, solar and
other projects will erode oil demand.
‘China’s oil demand will continue to grow
for the next 10 years, peaking at
17.4 million bpd in 2031, from
14.5 million bpd in 2021,’ says Galimberti
of Rystad Energy. ‘Yet in the 2030s,
strong EV penetration in the automotive
sectors and decarbonisation policies
in the other sectors will surely exert
increasing downward pressure on oil
demand. By 2040, we expect China’s oil
demand to be back to 2021 levels in our
mean scenario.’
China’s experts are more ambitious about
the country’s energy transition, with
Sinopec’s acting chairman Ma Yongsheng
predicting oil consumption will peak in
2026 at about 16 million bpd and natural
gas by 2040.
He believes oil will shift eventually to
become a raw material for chemicals
rather than fuel. The top Asian refiner
said it plans to ‘forcefully promote’ green
growth of its refining and petrochemical
business, accelerating the transition from
oil to chemicals and boosting production
of high-end materials.
Whether this will be enough to reign in
emissions sufficiently to head off the
worst impacts of climate change will
remain to be seen. For now, the pressures
are shorter term: keeping the lights on
and keeping a lid on inflation. China’s
success in addressing these will have
implications for us all.
For more information:
This article was written by Amy McLellan,
freelance writer, editor and author.
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MARKET ANALYSIS ASIAN CRUDE MARKETS
ASIA TO REMAIN A
GROWING SINK FOR THE
CRUDE MARKET
FGE’s Grayson Lim reports on the trends in Asia’s crude markets
Header: Market analysis | Asian crude markets
Headline: Asia to Remain a Growing Sink for the Crude Market
Standfirst: FGE’s Grayson Lim reports on the trends in Asia’s crude markets
The rapid economic development in Asia has resulted in strong oil demand growth in recent decades.
In tandem with this, close to 13.3 million bpd of refining capacity was added during 2010-2020. Despite
the current subdued state of refining business largely due to the COVID-19 crisis, around 3.1 million
bpd of refining capacity is expected to come on stream in Asia by 2025. Most of these projects started
construction before the onset of the pandemic.
China has been leading the refining capacity growth in Asia and will continue doing so in the coming
economic
2025.
these
projects
started
years. In fact,THE
by theRAPID
end of 2021,
Chinadevelopment
is expected to overtake
the Most
US asof
the
country
with the
most
in Asia
has resulted
inMoreover,
strong oilthree new mega
construction
before1.2
themillion
onsetbpd
of the
amount of installed
refining
capacity.
refineries totaling
are
growth
in recent
decades.
In in Asia, refinery
pandemic.
expecteddemand
to be brought
online
by 2023.
Elsewhere
expansions will contribute to the
tandem
with this,capacity
close toin13.3
million bpd
growing crude
processing
the region.
China has been leading the refining
of refining capacity was added during
capacity growth in Asia and will continue
2010-2020. Despite the current subdued
doing so in the coming years. In fact,
of refining
business largely due to
IMPORTstate
DECLINE
AND RECOVERY
by the end of 2021, China is expected
the COVID-19 crisis, around
to overtake the US as the country with
The growth
in
Asian
crude
demand
has
far
exceeded
incremental
production, resulting in the widening
3.1 million bpd of refining capacity is
the most amount of installed refining
of the regional
deficit
in recent
crude
expected
to come
on years.
streamAsia’s
in Asia
by and condensate production are on a downward
trajectory due to declining output from mature oil fields. Although considerable investments have been
made (particularly in China, India, and Australia) to boost production, they are insufficient to arrest the
decline in production. Therefore, Asia will remain a growing sink for the crude market.
01
Asia Crude Imports
26
25
24
mmb/d
23
22
21
20
19
18
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
*2021 imports are estimates
Source: FGE
In 2020, Asia’s crude imports posted the first year-on-year (y-o-y) decline in close to 20 years as the
region was battered by the slump in oil product demand amid the COVID-19 crisis. Like other regions,
PAGE 40
capacity. Moreover, three new mega
refineries totaling 1.2 million bpd are
expected to be brought online by 2023.
Elsewhere in Asia, refinery expansions
will contribute to the growing crude
processing capacity in the region.
IMPORT DECLINE AND RECOVERY
The growth in Asian crude demand has
far exceeded incremental production,
resulting in the widening of the regional
deficit in recent years. Asia’s crude
and condensate production are on a
downward trajectory due to declining
output from mature oil fields. Although
considerable investments have been
made (particularly in China, India, and
Australia) to boost production, they
are insufficient to arrest the decline in
production. Therefore, Asia will remain a
growing sink for the crude market.
In 2020, Asia’s crude imports posted the
first year-on-year (y-o-y) decline in close
to 20 years as the region was battered by
the slump in oil product demand amid the
COVID-19 crisis. Like other regions, Asian
refiners reduced crude runs to prevent
product inventories from hitting tank
tops. As a result, Asia’s crude imports
fell by 1.0 million bpd y-o-y to a tad below
24.0 million bpd in 2020.
Asia’s crude imports fell by 1.0 million bpd y-o-y to a tad below 24.0 million bpd in 2020.
20
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in
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et i
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ai
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k d
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a
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di
20 a
21
*
kb/d
Although there were expectations that Asian refiners would raise crude imports in 2021 as oil demand
recovers, inflows fell further to 23.6 million bpd this year. A slowdown in stockpiling activities in China
MARKET ANALYSIS ASIAN CRUDE MARKETS
(due to high oil prices and a strong backwardation in the crude time structure), as well as reduced
refinery runs in several countries due to a COVID-19 resurgence, has limited an increase in crude
imports. Refinery closures played a part as well.
economics. However, some cargoes were
also meant to replace lost sanctioned
02
Asian refiners reduced crude runs to prevent product inventories
from hitting tank tops. As a result,
Change in Crude Imports by Country
barrels (i.e. Iranian volumes) even though
Asia’s crude imports fell by 1.0 million bpd y-o-y to a tad below 24.0 million bpd in 2020.
they are not a one-to-one match in terms
ofraise
quality.
Asian
refiners
are generally
Although
there
were
expectations
that
Asian
refiners
would
crude
imports
in 2021
as oil demand
24,000
-412
getting
more
comfortable
processing
recovers, inflows fell further to 23.6 million bpd this year. A slowdown in stockpiling in
activities
in China
more US grades.
23,900
(due to high oil prices and a strong backwardation in the crude time structure), as well as reduced
Meanwhile,has
diversification
efforts byin crude
refinery runs in several countries due to a COVID-19 resurgence,
limited an increase
23,800
governments to reduce reliance on
imports. Refinery closures played a part as well.
23,700
Middle Eastern volumes have seen both
181
Indian and South Korean refiners showing
-55
23,600
Change in Crude Imports
byinterest
Country
more
in processing lighter US
-42
crude
grades.
In fact, South Korean
-41
23,500
-33
53
government
has
been offering freight
24,000
-412
-29
23,400
-14
incentives for crude imports from other
6 15 22
-8 -5 4
5
23,900
regions. South Korea has a free trade
23,300
agreement with the US, which allows
23,800
refiners to import US crude without tax
(typically 3% on crude imports).
23,700
Considering the above, the181
share of
light-sweet grade imports will continue
-42
-41
23,500
to increase in the coming years. Asia’s
-33Source: FGE
53 development
pursuit for petrochemical
-29
23,400
22
-14
4
15 upside to light-sweet
will also
5see6some
Asia’s crude imports should recover to pre-pandemic levels in 2022, in line with the recovery in-8oil -5
Although there were expectations that
Asia’s
imports
23,300crude
product demand. After drawing down on its crude inventories,
China will
likely resume stockpiling crudes, which will yield a higher volume of
Asian refiners would raise crude imports
activities
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In addition,
start-up
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asat
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fell further to 23.6 million bpd this year.
pandemic
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in 2022,
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will
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A slowdown in stockpiling activities
refineries*2021
in theimports
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most refineries in Asia are configured
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Source: FGE
to run predominantly on medium-sour
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CRUDE SOURCES
Asia’s
crude
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For more information:
refineries
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01 AsiaEast
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Rongsheng’s 400,000 bpd Phase 2 region to Asia, its share has declined from 60.9% in 2016 to 54.2% in 2021.
02
Change
in
crude
imports by country
US crudes typically find their way into
project and Shenghong’s 320,000 bpd
Asian
refineries
on
favourable
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03 Asia crude
imports
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ledbytoregion
lower Middle Eastern
refinery will be commissioned in China,This is a result of several factors. Prolonged OPEC+ production
while Petronas will restart its 279,000 crude exports to Asia. Moreover, some Asian refiners (e.g. South Korea and India) have been looking
bpd RAPID refinery in Malaysia.
to diversify their crude supply sources away from the Middle East.
-55 are estimates
*2021 imports
20
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20 a
21
*
23,600
CRUDE SOURCES
Of the 23.6 million bpd of crude imported
in 2021, medium-sour grades from the
Middle East accounted for more than
half of total inflows. While the Middle East
remains the top crude-supplying region to
Asia, its share has declined from 60.9% in
2016 to 54.2% in 2021.
This is a result of several factors.
Prolonged OPEC+ production cuts has led
to lower Middle Eastern crude exports to
Asia. Moreover, some Asian refiners (e.g.
South Korea and India) have been looking
to diversify their crude supply sources
away from the Middle East.
Also, Asian refiners are purchasing more
volumes from the US. Despite the overall
03
100%
80%
60%
Asia Crude Imports by Region
4.2%
2.8%
5.1%
7.8%
5.9%
7.8%
5.8%
7.4%
6.5%
8.2%
5.1%
6.5%
8.1%
5.7%
6.1%
7.3%
15.0%
15.3%
13.8%
10.3%
13.2%
14.8%
13.5%
11.0%
11.6%
11.7%
10.3%
10.6%
60.9%
57.9%
57.4%
55.1%
53.5%
54.2%
2016
2017
Middle East
FSU
40%
20%
0%
2018
Africa
North America
2019
Asia Pacific
Europe
2020
2021
Latin America
Source: Vortexa
Also, Asian refiners are purchasing more volumes from the USA. Despite the overall decline in Asian
crude imports, US crude inflows have increased by some 100 kb/d y-o-y to around 1.3 million bpd in
so far in 2021. The bulk of the arrivals comprise light-sweet grades such as West Texas Intermediate
PAGE 41
(WTI) and Eagle Ford.
US crudes typically find their way into Asian refineries on favourable arbitrage economics. However,
some cargoes were also meant to replace lost sanctioned barrels (i.e., Iranian volumes) even though
PROFILE WOMEN IN TANKS | ALLISON NEWELL
THE ROUTE TO INCLUSION
IS NOT EXCLUSION
Allison Newell explains the importance of corporate social responsibility (CSR)
and the tools and approaches needed for a truly diverse workplace
DR ALLISON NEWELL is an
environmental, social and corporate
governance (ESG) consultant with
her own consultancy ESGenuine. She
works with a number of tank terminal
companies, and others, helping them
to improve their corporate social
responsibility programmes.
‘I give advice on all seven major facets
of non-financial CSR and CSR reporting
options but I have a real particular
passion for health and safety. I believe
that a safe and healthy work environment
is a fundamental right of every employee.
I’ve got some customers where I do the
whole CSR package and others where the
focus is for now primarily on health and
safety. I go in do an assessment for them,
let them know what their status is, and
put together a plan for them. They either
run with that plan themselves or I help
them with implementation,’ she says.
Her varied career has given her great
experience.
A DRIVE FOR CHANGE
Following a PhD in chemistry, Newell
realised that academia wasn’t for her and
began to investigate her options.
‘By chance I entered Rio Tinto. I wanted
to stay where I was living at the time
and I just went into the library, because
that’s what you did in those days, and
just looked up what companies were in
that area. A company called Borax was
there, which was part of Rio Tinto, and I
01
applied and I got the job. I spent 17 years
in Rio Tinto. I originally started in an
environmental function looking at arsenic
pollution in its mines and gradually did more
collaborative research projects looking
at novel products in detergents, wood
preservation, ceramics and also conducted
some blue skies work developing
molecules to advance cures for cancer,’
she remembers. Many were patented.
Her diverse experience led her to
be selected as a change agent for a
management of change programme
Rio Tinto Borax was starting, following
high profile exposés by NGOs such as
Greenpeace on the company. Following
the roll-out of management of change
courses, Borax introduced health, safety,
environmental, community engagement,
and disaster management and recovery
standards. Newell ‘naturally’ rolled into
Rio Tinto’s health and safety team. After
moving to Holland to get married, Newell
continued to work in Rio Tinto until 2007
when she was headhunted by a Dutch
family-owned international company,
Mourik, to be head of health and safety
there. She remembers this period as
being extremely dynamic and she learnt
a lot. She was then headhunted by LBC
Tank Terminals in 2014, originally as the
health, safety and environmental director.
However, Newell persuaded the then CEO
of the company that it needed a more
holistic CSR approach, and she became
the CSR director.
‘LBC at that time had nothing to do with
corporate social responsibility so I set
up a three-to-five year road map on
how to actually achieve a responsible
organisation and sustainability reporting,’
she says. ‘One of the greatest success
stories at that time was the holistic
approach and the team work between
in particular the HR director and the
IT director, and the fact that the then
CFO was a proponent of integrated
sustainability reporting. I was also really
fortunate because I employed Martin
Hoogenraad as CSR manager in my team
and he was an absolute joy to work with.’
The company’s first sustainability report
wast published just after Newell left LBC
to set up ESGenuine, but she says it was
‘really nice’ to see it come out, based on
what she and the team had set up.
The environmental part of CSR/ESG
is obviously vital for society, but Newell
believes that the ‘social’ part of ESG is all
too often forgotten, and she emphasises
the importance of really investing in people
and the workforce. This has driven her
interest in diversity and health and safety.
‘What I think is really important is
investing in people. One thing I’m asked
about a lot is equality. Equality is for
everybody and we need to take the bias
out of business so that everyone has
an equal chance to perform and to help
society,’ Newell says.
SEXISM AND BIAS
Workplace sexism is all too common
and Newell says she has been on the
receiving end of discrimination many
PAGE 42
PROFILE WOMEN IN TANKS | ALLISON NEWELL
times. She was once passed over for a
dream opportunity in the US because
as a young widow with a new baby it was
assumed she wouldn’t be able to do the
job, and the job was given to a childless
male colleague. While she concedes that
the discrimination likely came from a
position of goodwill, assumptions were
made about her without anyone thinking
to ask her about it.
The workplace culture in certain
companies, particularly at executive level,
is still geared to the ‘old boy network’.
Too often, Newell has been in meetings
where the men were off playing golf, or
similar, all weekend, and made business
decisions without including everyone else
at the table. She has also seen situations
where a senior female who got on well
with the male CEO was widely assumed to
be having an affair with him, rather than
it being recognised that she was highly
competent. A male colleague, who also
got on very well with the CEO, was simply
assumed to be good at his job.
Newell warns, however, of the danger
of women being too sensitive. Various
media and social media frenzies have
drawn attention to minorities being
discriminated against by the stereotypical
sexist ‘white male’.
‘It should not be the go-to that any
challenge of a woman’s competences
is rooted in sexism; often it is simply
constructive feedback,’ she believes.
The issue can be a complicated one.
‘Sexism definitely exists and you can feel
it, but it is not always tangible, making
it difficult to address. If someone’s
trying to touch you in the lift or makes
a very inappropriate sexist comment
that’s very clear, but often it is far more
subtle,’ she says, adding: ‘I think the way
forward is training and the creation of
an open culture to give people the tools
to deal with situations that make them
uncomfortable.’
MAKING EVERYONE COMFORTABLE
Many workplaces have a bit of ‘banter’
and teasing, which inevitably can
sometimes stray in to sexist or biased
territory, but Newell doesn’t believe this
always comes from a bad place and as
such, that it necessarily needs to be
stamped out altogether.
‘In my last position we had a really good
laugh, but I did address the all-male group
once to ask if there was anyone in the
group who was uncomfortable with the
way we had our banter. I also addressed
it one-on-one to make sure I really
understood correctly. In a group everyone
will say that they are fine but actually
when you talk to them one-on-one they
might admit to being uncomfortable. At
the time, all of them looked quite relieved
that little bit of banter and fun was still
possible,’ she says.
However, making sure that everyone
is indeed comfortable and feels safe is
important, and if not, something must
be done. She acknowledges that there is
a fine line that can be crossed, and that
when this is the case, that it does need
to be addressed and in her opinion, the
higher up the ladder you go, the more
difficult the challenge becomes.
AUTHENTICITY REQUIRED
While the workplace is undoubtedly
becoming much more diverse, Newell is
concerned that it is not coming from a
place of authenticity.
‘I think it’s coming from a position of fear,
which I’m not sure is actually going to
promote a good culture ultimately. You
see people discussing quotas or that
you have to have females in the industry
because there’ll be fines if they don’t, or
customers will frown,’ she says.
So-called ‘positive discrimination’ is
not the answer for improving diversity.
The week before the interview with
Tank Storage Magazine, Newell was
contacted by a headhunter for a new
position. She had the required skills, but
the headhunter’s primary reason for
choosing Newell was her gender.
‘I would hate to be taken on in a company
because the driving factor was that they
were looking for a woman. You’re always
then going to be the token female. You’re
going to get in there and everyone, men
and women, are going to think that the
company only took you on because they
couldn’t take on a man because they
had to get the percentage of women up.
That’s what I mean by it’s not a place of
authenticity. It should be the right person
with the right skills doing the right job,’
she says.
the balance in society. Newell has often
been asked to run women-only groups,
but she has always resisted, believing that
the problem of sexism needs to be tackled
by everyone.
‘I think if you want to improve inclusion it’s
a very strange way to do it by setting up a
group only for women in an organisation,
where you then exclude men or people
who identify as not being women,’ she
says. ‘I’ve never thought the route to
inclusion is exclusion.’
One of the best ways to tackle the
problem of unbalanced teams right at the
beginning is for workplaces to anonymise
the application process. Unconscious
biases, for example the tendency for
like to choose like, often mean that a
recruiter/employer will pick a Peter over
a Janet or a Jan over an Abdullah, for
example, while an older person might be
rejected as being too expensive or just too
close to retirement, or perhaps rejected
based on where they live and so on.
‘You can make assumptions about
someone before the CV has even had a
proper review. I think that’s a really critical
part of it,’ she says. ‘I’m really in favour
of a situation whereby a reliable partner
removes all personal identifying features
from the CV and just leaves the education,
competences, and work experiences. Take
away the bias initially and then everyone
can turn up for an interview based on skills
alone, and have the chance to tell their
story and make a good impression.’
The key is often training and an open
culture, Newell believes. Employees
at all levels in a company should have
unconscious bias training, so that they
understand any prejudiced behaviours
which they are not aware of, and a culture
that allows them to speak freely and
challenge these behaviours. When bias
can be discussed in an open and nonthreatening way, then we will see a truly
equal workplace for all.
MINIMISING BIAS
Newell thinks that there are a couple of
relatively easy ways to tackle bias and
ensure a workplace that better reflects
01 Allison Newell
PAGE 43
TECHNICAL NEWS
TECHNICAL NEWS:
GLOBAL INDUSTRY UPDATES
Adler and Allan
ADLER AND ALLAN
OFFERS NEW
SUSTAINABILITY
SERVICES
way on achieving net-zero; and using our
expertise in energy, fuel, waste, water and
ecology to help others to make the world
a little better than it was yesterday.’
Environmental risk reduction
company Adler and Allan has
launched new sustainability services
and strategies for customers, and
hired a new sustainability manager
to lead its green efforts.
Dan Ellis, the new sustainability manager,
will work to embed sustainability
principles with Adler and Allan’s growth
strategy. Ellis was previously the
principal sustainability consultant at
Delta Simons and has experience in
sustainability, carbon reduction and
ESG with some of the world’s largest
manufacturers, retailers, technology
companies and investment funds.
The new services will help customers
to understand their environmental
impact, decarbonise operations and
work towards a sustainable future. They
include net-zero strategies and action
plans, carbon offsetting, streamlined
energy and carbon reporting (SECR),
energy audits, transport audits, Task
Force on Climate-Related Financial
Disclosures (TCFD) and non-financial
disclosures, and environmental, social
and corporate governance (ESG).
Adler and Allan has recently launched
a sustainability tool which allows users
to estimate the carbon emissions of a
project. It can show the CO 2 emissions
associated with all activities required
in a project, allowing clients to select
from at least two remedial options; one
being a reduced carbon alternative. The
environmental consultancy team built
the tool using conversion factors from
the UK’s Department for Environment,
Food and Rural Affairs (DEFRA) and is
the first of its kind in the industry.
‘Since 2012, we have measured, managed
and reported on our carbon footprint
via the Carbon Reduce Scheme in
accordance with ISO 14064-1:2006,
achieving gold certification status,’
says Ellis. ‘Over the past five years, we
have cut our carbon intensity by over
14% per full-time equivalent (FTE) and
realised a 4% reduction in our absolute
emissions, despite significant business
growth. We are committed to leading the
PAGE 44
Chevron Technology Ventures and
Pavilion Capital in investing for the first
time. Existing investors AP Ventures,
Royal Vopak and Winkelmann Group
also contributed. The new investors
have a number of reasons for investing.
JERA is looking to use hydrogen in its
US power generation portfolio as part
of decarbonisation efforts. Chevron
invested through its Future Energy
Fund II, which focusses on low carbon
technologies with potential to play a
critical role in the future energy system.
With Hydrogenious’ LOHC technology,
hydrogen is bonded to a non-toxic,
non-flammable liquid, based on
benzyltoluene, from which it can be
released as required. It allows hydrogen
to be generated and transported at scale
anywhere in the world.
Brodie
BRODIE ACQUIRES
DANIEL LEGACY
COMPACT PROVER LINE
Brodie Meter Co has bought the
Daniel Legacy Compact Prover
product line from Emerson
Automation Solutions.
The acquisition expands Brodie’s
flow measurement portfolio. It will be
rebranded as the Brodie Compact
Prover. Brodie intends to support the
global legacy installed base and new
opportunities. The company says that
there will be a phased re-integration
approach, and production of new units
will begin in 2022.
As part of the acquisition, Brodie will
purchase parts for the product line directly
from Emerson’s previous suppliers.
Hydrogenious LOHC Technologies
HYDROGENIOUS
RAISES €50 MILLION
FOR LOHC
German cleantech company
Hydrogenious LOHC Technologies
has raised €50 million to further
develop its proprietary liquid organic
hydrogen carrier (LOHC) technology.
In its most recent funding round, which
was oversubscribed, JERA Americas
and Temasek led the round, joining
With the new funding, Hydrogenious will
continue to scale up its StoragePlant and
ReleasePlant systems to meet demand
for green hydrogen for large-scale
industrial projects. It will also invest in its
joint venture with Norwegian shipping
company Johannes Østensjø to develop
an emissions-free propulsion system
for shipping. The company also plans
to build turnkey plants and invest in its
own LOHC plants, as well as offering
operation and maintenance services.
‘Our proprietary liquid organic
hydrogen carrier technology is
recognised as the missing link for global
deployment of sustainable hydrogen
infrastructures,’ says Hydrogenious
CEO and founder Dr Daniel Teichmann,
adding: ‘There is a strong conviction in
the competitive positioning of our LOHC
compared with other hydrogen carriers
such as liquid hydrogen, compressed
hydrogen and ammonia.’
TECHNICAL NEWS
plan optimisation and ultimately lowers
demurrage costs.
Shell Pernis
SHELL PERNIS
REFINERY SELECTS
TWTG WIRELESS
SENSOR
Industrial Internet of Things (IIoT)
specialist TWTG will provide its
NEON vibration sensors at Shell’s
Pernis Refinery in the Netherlands
after winning the tender.
TWTG has already delivered the first 100
LoRaWAN-based NEON vibration sensors
to the refinery. The company says that
the project will demonstrate the benefits
that condition-based asset monitoring
can bring to industrial sites, by detecting
bearing-faults on pumps or other rotating
equipment early, and so being able to act
before problems arise, thereby reducing
downtime and eliminating potentially
hazardous situations.
Felix Fikke, instrumentation project
engineer at Shell Pernis says that the
sensors will allow the refinery to measure
root-mean-square (RMS) velocity as well
as fast fourier transform (FFT).
Solvay
SOLVAY INTRODUCES
INHIBITOR FOR
MONOMER STORAGE
Chemical company Solvay has
launched a next-generation
shortstop inhibitor solution to
prevent runaway polymerisation
in acrylic and methacrylic acids,
esters and other monomers whilst in
storage and being transported.
When stored incorrectly, runaway
polymerisation and uncontrollable
reactions can occur in such feedstocks,
generating large quantities of heat
which can result in fire, explosion and
tank rupture. Solvay’s new product,
Phenothiazine (PTZ) LVT 2330 is
suitable for use in bulk storage facilities,
transportation tanks and containers.
Phenothiazine LVT 2330 contains 30%
PTZ dissolved into Solvay’s proprietary
solvent Rhodiasolv Polarclean HSP,
a green solvent developed as an
alternative to n-methyl-2-pyrrolidone
(NMP), which is commonly used as a
solvent for shortstop inhibitors, but
is now considered a substance of
very high concern (SVHC) under EU
Registration, Evaluation, Authorisation
and Restriction of Chemicals (REACH)
regulations. Phenothiazine LVT 2330 is
easier to handle than solutions of NMP,
with a lower freezing point, making it
ideal for colder climates. Additionally,
the high active PTZ concentration
of Phenothiazine LVT 2330 permits
deployment and storage of the efficient
and economic shortstop in both large
and small installations.
‘We see a great market potential for this
pioneering shortstop inhibitor with a
non-toxic and non-volatile solvent for
the acrylics markets in North America
and Europe, where chemical toxicity is
of increasing concern to the industry
and authorities. However, Asia offers
the greatest potential where shortstop
inhibitors were not standard and have
only recently been more widely accepted
and used to help reduce the risk of
accidents,’ says Lars Fischer, worldwide
technical market manager at Solvay.
TotalEnergies
TOTALENERGIES
SELECTS DROPBOARD
FOR BERTH
SCHEDULING
The European refining and
petrochemicals unit of TotalEnergies
has selected Systems Navigator’s
Dropboard platform for berth
planning and scheduling.
Dropboard can advise on berthing,
turn-around times and process times,
allowing the user to select optimal arrival
slots and reduce waiting times. Because
it can visualise waiting times, the
systema can predict future demurrage
costs. Users can identify the root causes
of demurrage and take demurrage
risks into account when making
operational decisions. This allows for
The platform can link TotalEnergies’
headquarters with its site scheduling
teams, allowing real-time scheduling
and updates. Dropboard is connected
to TotalEnergies’ own IT systems and
shares information with the company’s
enterprise resource planning (ERP)
and business intelligence platform,
improving the transparency and
communications between stakeholders
in multiple locations.
DroneDeploy
DRONEDEPLOY
LAUNCHES NEW
PRODUCTS
US commercial drone company
DroneDeploy has launched new
tools for site inspection and 3D
measurement, including the
Walkthrough app, and a beta preview
of its new Ground Robotics offering.
Dropboard can advise on berthing,
DroneDeploy 360 Walkthrough was
launched in 2020, to capture 360
degree walkthrough images and
document projects. The company has
now launched this as a companion app
for iOS. Engineers can capture conditions
for client updates, documentation, and
planning, while assets can be digitally
documented for faster, more efficient,
remote inspections. DroneDeploy has
also added Floor Plan View to 360
Walkthrough, an interior view which
allows data to be directly overlaid on
floorplans.
Photo Inspection allows an engineer or
field worker to upload photos without
processing into a map. Inspections can
be carried out immediately on an asset,
on photos captured from drones in the
air or from cameras or mobile devices on
the ground. Photos are tagged with the
project location and team members on
site can be quickly alerted to problems,
For its Enterprise customers,
DroneDeploy has announced the beta
launch of its Ground Robotics solution.
Instead of aerial drones, ground robots
such as rovers or quadrupeds like Spot
from Boston Dynamics are equipped with
payloads such as 360˚ cameras, thermal
cameras, or gas sensors, to capture data
and send it back to the DroneDeploy
platform for analysis. These autonomous
inspections can replace a physical
walkthrough by an employee, with data
uploaded to DroneDeploy and connected
to the 360 Walkthrough platform. Any
issues, such as loose wiring or debris,
can be tagged and annotated and
assigned to employees.
PAGE 45
TECHNICAL DATA MANAGEMENT
CENTRALISING ASSET
DATA MANAGEMENT IN
THE PROCESS INDUSTRY
CEA software can track, manage and visualise all integrated data sources
THE PROCESS industry is waking
up to the heightened importance
data plays in reducing costs, maximising
the value of assets, and increasing the
competitive advantage in the market. As
the industry continues to grow, so do the
number of assets and the data associated
with them. Managing asset data improves
the possibility to make data driven
decisions and be in full control of asset
performance and movement.
Over the years, there has been an
increased shift towards centralising
data management. More organisations
are initiating this digital transformation
journey to optimise their asset data
and alleviate any possible risks and lags
in projects.
ASSET DATA IN SILOS
The process industry is well known to
be a straggler in this transformation.
Managing asset data was done in a
more passive manner, where working
on asset data reliability and accessibility
was left to when it was needed the
most. Sometimes, asset data are too
outdated and misaligned that they must
be recreated. Working this way not only
elongates the time spent on asset data
management but can also be very costly.
What is the cause? Creating and storing
asset data in independent systems and
applications. It is difficult to know which
01
PAGE 46
asset data are available when they are
spread across the organisation in silos.
It is truly an inefficient way of managing
them, especially because of all the
updates and changes made throughout
the asset life cycle.
Imagine the amount of asset data that
are spread across the organisation and
are stuck in silos. Not only are different
stakeholders using their own processes
and structures but there are also multiple
versions unmonitored across the entire
asset life cycle. It will be a long-winded
and tedious task to continuously sift
through outdated and misaligned asset
data. The industry struggled to monitor
all asset data with its overwhelming
growth, new industry regulations, and a
continuous lack of communication and
collaboration between stakeholders.
Placing different data
sources in one common
shared view makes
managing asset data more
efficient and effective. Asset
data will no longer be left in
silos, decreasing the risk of
it becoming outdated
MANAGING ASSET DATA
CENTRALLY
It is essential to implement a solution in
which different systems and applications
holding asset data across the life cycle
are brought together. Placing different
data sources in one common shared
view makes managing asset data more
efficient and effective. Asset data will no
longer be left in silos, decreasing the risk
of it becoming outdated and misaligned.
Most stakeholders already have their own
systems and applications, they are just
not aligned with one another. Therefore,
the next step will be to integrate these
systems and applications in one location,
ensuring that the asset data are always
shared, easily accessible, up-to-date,
reliable, and expandable. This facilitates
a better control of all assets across the
lifecycle in real-time, no information will
be missed, and projects will run more
smoothly. This is all made possible with
the use of technology, especially the ones
designed to tackle such an assignment.
IMPLEMENTING AN ASSET DATA
MANAGEMENT SOLUTION
Advances in technology are moving its
focus towards more automated data
management solutions. Setting up such
a solution is an increasing trend in the
digital transformation journey. It helps
take away silos and makes tracking of
TECHNICAL DATA MANAGEMENT
asset data updates and changes a lot
easier. After implementing this solution,
asset owners in the industry are swiftly
seeing rapid improvements in costs and
day-to-day operations. For example,
Plant4D is an asset data management
software solution. It was designed and
engineered to manage and visualise every
asset data across the entire asset life
cycle in real-time. It efficiently assists in
the updating, accessibility, and reliability
of asset data, transforming it into usable
asset information.
For years, Plant4D has been implemented
in various organisations in the industry
to integrate different data sources
into one common view. Asset data
from engineering, procurement and
construction, maintenance and HSEQ are
formatted to provide reliable and up-todate information. Asset information can
also take the form of 3D- and 2D-models
such as isometrics and P&IDs.
INTO THE FUTURE
Imagining a software solution that will
track, manage and visualise all integrated
data sources is no longer a thing of the
past. It is now possible. The outdated
layers of the process industry are
slowly but surely peeling back as more
technology surface with improved ways
of storing and managing asset data. The
world of digitalisation is still taking shape
but it is heading in the right direction.
There are still a large number of
organisations out there that are still
working traditionally, their asset data
are still unmanaged and stuck in silos.
However, as the industry continues to
improve, so will the technology and the
number of organisations using them.
There is no doubt that those who take
hold to the digital transformation journey
and implement a central management
system will surely reap the most benefits
before the market requires a new form of
staying competitive in the market.
For more information:
www.ceasystems.com
01 Digital transformation journey of asset data
02 Plant4D accesses and shares asset data across
an organisation
02
Utilising a common view to manage
asset data across the organisation
improves transparency and increases
communication and collaboration
between stakeholders. With this kind
of transparency and visualisation,
Plant4D makes it possible for different
stakeholders to validate and enrich every
asset data with supporting documents
such as, certifications and inspection
reports.
Several user case studies have been
created between Plant4D and users
which showcases how such a solution
can be used to, 1) optimise asset usage,
2) lower operations and maintenance
costs, 3) improve asset data processing.
PAGE 47
TECHNICAL LEGAL
THE BROAD CONSEQUENCES
OF A SPILL
Adler and Allan’s Mike Prendergast and Burges Salmon’s Simon Tilling outline
the legal and other implications of a spill and the importance of having an
adequate emergency response plan in place
SITE OPERATORS should
be aware of the legal, as well
as practical implications of a spill.
Environmental and health and safety
law imposes certain duties on site
operators which, if not complied with,
can result in legal proceedings, fines and
reputational damage.
In addition to the time and expense
involved in containing and cleaning up
a spill, a spill into the environment can
have a number of legal implications.
These should be considered by
businesses responsible for storing,
using or transporting potentially
polluting materials. While typically
hazardous substances such as oils,
certain chemicals and pesticides are
widely understood to result in pollution
if released into the environment, other
substances such as food products and
beverages can also have a detrimental
effect and be caught by relevant
environmental legislation.
and it is also a criminal offence to fail
to comply with a remediation notice
requiring certain clean-up steps to be
taken. Specific licences must also be
obtained by businesses releasing trade
effluent into public sewers. As such,
an accidental spill of trade effluent
could be an offence under the trade
effluent consent obligations of the Water
Industry Act 1991. The Control of Major
Accident Hazards (COMAH) regime may
also apply to sites handling or storing
dangerous substances.
This legal regime imposes certain
obligations on site operators, including
preparing and retaining a written major
accident prevention policy and (in the
case of ‘upper tier’ establishments)
producing a safety report with
arrangements in place to deal with
major accident hazards. Time should be
invested ahead of any incident to think
these plans out in order to make them as
detailed, robust and effective as possible
should a spillage occur.
CRIMINAL LIABILITY
A spill of a substance capable of harming
the environment could result in a criminal
prosecution by the relevant regulator
under various regulatory regimes, and it
could also lead to nuisance or negligence
claims from persons affected by the spill.
A business responsible for a serious spill
could, therefore, be made to answer its
case in both criminal and civil courts.
Criminal liability for environmental
offences can arise in the event of a
regulatory breach.
Under the Environmental Permitting
regime, for example, if substances are
released into controlled waters as a result
of a spill, the person or entity responsible
for that spill may be required to comply
with enforcement notices served by the
regulator and/or be prosecuted for the
spillage itself.
Under the Environmental Damage
(Prevention and Remediation)
Regulations 2015, it is a criminal offence
to fail to take all practicable steps to
prevent further damage if an activity
has caused environmental damage
PAGE 48
01
Environmental offences are also often
‘strict liability’ offences, meaning that
offending businesses tend to plead
guilty and focus their defence efforts
on the level of sanctions proposed by
the prosecutor. The nature and level of
those sanctions depend on three main
factors. First, the courts will consider the
level of environmental harm which was
caused (or could have been caused).
The culpability of the offender will also be
assessed, as well as the size of turnover in
the case of a corporate offender.
CULPABILITY
Culpability for environmental offences
ranges from deliberate to ‘low
culpability’. Deliberate environmental
offences are rare, but businesses who do
not take sufficient care to reduce the risk
of spills could be deemed ‘negligent’ or
even ‘reckless’ by the courts. Businesses
with a good track record of following
robust processes to reduce such risks
TECHNICAL LEGAL
will be in a better position to argue
that an offence was not committed
deliberately or recklessly and, thereby,
reduce the level of sanctions imposed on
them for the offence.
There has been a push in recent
years to ensure that compliance with
environmental protection regimes is
taken seriously by businesses of all
sizes. Notably, prosecutors are keen
that the sanctions imposed on offending
businesses are severe enough to be
noticed by shareholders. This has
resulted in a marked increase in the
level of fines over the last decade,
especially for large companies. Very large
companies have been made to pay fines
into the millions of pounds for letting
untreated sewage spill into rivers.
In certain circumstances, senior officers
of offending businesses can be held
personally liable. This can arise where the
officers are so closely involved with the
day-to-day operations that the offence
is attributable to them, or because the
offence committed by the company
is committed with their ‘consent,
connivance or neglect’. Penalties for
senior officers in their personal capacity
are rare and usually reserved for repeat
or deliberate offending. However, it is
worth noting that sanctions are severe,
including the possibility of disqualification
In addition to the time and
expense involved in
containing and cleaning up
a spill, a spill into the
environment can have a
number of legal implications.
These should be considered
by businesses
of directors, fines and (in the most
extreme cases) prison sentences lasting
several months.
CIVIL LIABILITIES
As well as regulatory compliance,
site operators should be aware of the
civil liabilities that could arise from a
spill. For example, if the spill affects
neighbouring land there can be claims
for clean-up costs under the law of
nuisance. Landlords will also demand
remediation under tenancy agreements,
and if the site is subject to an installation
permit, the environmental regulator can
demand that the site is brought back to
baseline condition (the condition before
the spill). In the case of large-scale
spills affecting a local community, local
businesses and their insurers could face
multiple claims and be required to cover
the costs of remediation.
PROTECTING A REPUTATION
Finally, the reputational damage from a
pollution event and ensuing investigations
may be as much a concern for businesses
as strictly legal consequences. In light of
the high legal and reputational stakes, the
adage that ‘prevention is better than cure’
applies acutely to businesses handling
potentially polluting substances.
But it doesn’t have to be complicated.
The right supplier with knowledge of the
law and technical capability will be able to
de-risk your business, giving you peace of
mind that you are as prepared as you can
be for an environmental incident.
For more information:
This article was written by Mike
Prendergast, technical response
supervisor at UK environmental
services company Adler and Allan, and
Simon Tilling, partner at UK law firm
Burges Salmon.
www.adlerandallan.co.uk
www.burges-salmon.com
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20/10/2021 09:46
PAGE 49
TECHNICAL TANK CLEANING
TANK CLEANING AND
INSPECTION–PERFORMANCE
THROUGH AUTOMATION
ATPL’s robots offer proven non-person entry cleaning and inspection of on-line
aboveground storage tanks across Asia
ADVANCE TECHNIC (ATPL)
supports aboveground storage tank
(AST) owners with proven, innovative
solutions and services that greatly
enhance the safety of work operations,
while protecting the environment, and
saving time and money.
01
ENHANCES SAFETY FOR HUMANS
AND THE ENVIRONMENT
Headquartered in Singapore, ATPL offers
an on-line tank cleaning and inspection
solution to AST owners in Asia that would
prefer to clean and inspect their tanks
without emptying them or removing
them from service. This non-person entry
cleaning solution eliminates the risk of
human entry into the tank and eliminates
the volatile organic compound (VOC)
emissions caused by venting the tank to
the atmosphere to facilitate human entry.
Tools for internal tank cleaning and
inspection used while the tank is in
service have been developed and are now
routinely deployed. These robotic crawler
devices are designed for total immersion
in liquids and have been successful in
providing cleaning and pumping of sludge
and sediments out of storage tank,
and in providing ultrasonic thickness
information on tank bottoms product
storage, such as jet fuel, diesel, kerosene,
condensate and crude oil.
Benefits:
02
• Can be completed with the equipment
on-line and in-service, increasing
production and revenue stream
• Provides intelligence to the shutdown
planning team
• Reduces resources required during
shutdown
• Eliminates confined space entry for
personnel
• Provides advance information
to eliminate crash procurement
requirements
• Spreads the schedule so that a high
number of assets do not require
invasive inspection during the same
calendar period.
• Supports innovation and operational
excellence concepts
ATPL sends a robot through a
conventional roof manway and lowers it
to the tank floor whilst the tank remains
full of crude oil or other products. Once
on the floor the robot can navigate via
control room around the tank, pumping
the sludge out through the roof manway
to an external closed loop separation
PAGE 50
TECHNICAL TANK CLEANING
03
system. Here the unwanted components
of the sludge can be removed for disposal
and the good product returned to the
tank. Mechanical and chemical options
are available with the robot to manage
difficult sludge levels and consistencies.
ATPL’s tank cleaning on-line service
includes a separation system to
remove solids like rust and unwanted
settlements and return the oil back
to the client. This method of cleaning
is the most ideal as it does not harm
the environment through venting or
incineration of the removed sludge, as is
traditionally done. Suitable tanks include
lube oil, diesel, jet fuel and petrol.
COST EFFECTIVE AND EFFICIENT
ATPL is able to supply different robots
suitable for the tank type with various
cleaning and desludging system options
depending on specific requirements.
ATPL has successfully deployed certified
04
ATEX Zone 0 ESOT (Equipment Set
for Remotely Controlled Removal of
Sludge from Oil Tanks) for explosive
environments, for remotely controlled
sludge removal from oil tanks. These
processes have met and exceeded
customer’s expectations.
continued innovation and share ATPL’s
passion for performance through
automation towards greener and safer
work processes,’ says the company.
For more information:
www.advancetechnic.sg
PERFORMANCE
THROUGH AUTOMATION
On-line tank cleaning offers significant
benefits for AST owners, and robotic
technologies available today allow for a safe
and practical approach to effective integrity
management and tank maintenance.
ATPL can also deploy water blasting
robotics for cleaning and paint removal on
tank shells, externally and internally.
‘ATPL is excited to work with forwardthinking plant owners who value
01 Robot for on-line tank cleaning and inspection
(crude oil)
02 ATEX Zone 0 ESOT with accessories for nonperson entry cleaning
03 Waste is safely and efficiently transported out
for treatment
04 Robot for on-line tank cleaning and inspection
(class 2 fuels and water)
05 Schematic of on-line tank cleaning
05
Hose to Filter/
Centrifuge System
PAGE 51
TECHNICAL DATA MANAGEMENT
FASTER THAN EVER
Tank Storage Award winner Toptech Systems explains what it can offer to the
whole petroleum supply chain
IN RECENT years, Toptech Systems
has grown from being a solutions
provider for terminal owners, to being a
solutions provider for the entire supply
chain (terminal owner, supplier, customer,
carrier, and driver). Toptech has done this
by expanding and improving its suite of
products to provide unique benefits that
reach beyond the terminal owner, offering
key advantages to other stakeholders as
well. With a reputation built over the last
33 years as one of the most innovative,
reliable companies in the industry, it
was a fitting evolution to meet the needs
of a broader group in the refined fuels
terminal space.
Explaining why Toptech has made this
strategic move, Manish Patel, global
commercial director, states, ‘We’ve
seen the industry, every stakeholder,
shift to a demand for more information,
more insights, and easier access to that
information. We knew that we could
meet those needs and provide value to
everyone involved. Ultimately, by meeting
those needs, it increases the competitive
advantage for the terminal owner. Making
terminals that partner with us more
01
PAGE 52
efficient and attractive to the market is
what keeps us going.’
SYNETICS
One example of this is Toptech’s data
analytics solution, Synetics. This solution
allows the terminal owner to track
metrics such as load times, gate-to-gate
times and more in a way that is visually
clear. But often, suppliers want that
data as well. Through Synetics, terminal
owners can send this information to
Toptech Systems has grown
from being a solutions
provider for terminal
owners, to being a solutions
provider for the entire
supply chain (terminal
owner, supplier, customer,
carrier, and driver)
their suppliers, making it even easier for
suppliers to make educated decisions and
choose them over a competitor.
Synetics also allows the terminal owner
to model each load rack after the most
efficient one, pinpoint which drivers
need additional training, and investigate
anomalies. This will lead to a safer, more
efficient experience for everyone.
LOAD2DAY
Another example of this is with Load2day,
Toptech’s innovative data management
system for carriers and suppliers.
Recently, a company who was building
their first terminal knew they needed
Toptech’s preset driver interface
(Multiload II) and Terminal Management
System (TMS), but they also wanted to
enable carriers and suppliers to manage
their own master data. They were
pleased to be able to provide that without
spending thousands of dollars and manhours to build their own system.
The terminal’s carriers and suppliers
are now managing their own master
TECHNICAL DATA MANAGEMENT
data through Load2day, an easy-to-use
web portal that enables them to view
and edit their data while also accessing
their transaction data. The terminal has
multiple suppliers and carriers who each
have their own technology, processes,
and levels of sophistication. Load2day’s
scalability allows carriers and suppliers
that already have a solution for managing
master data to seamlessly input that
data into the portal through application
programming interfaces (APIs). Those
that did not already have a solution are
managing their data through the secure,
self-serve web portal.
Through Load2day, the terminal is also
providing the transaction data necessary
for appropriate systems to generate
required third party documentation
and have that documentation readily
available, so drivers leave in a timely
manner. The solution is even sending PDF
bills of lading (BOLs) to the terminal’s
customers that choose to receive them
so they know exactly what’s coming and
can optimally manage their locations.
The terminal owner is still able to control
the data for managing authorisations,
inspections, training, and more.
Once the master data has gone into
Load2day, it is sent to the Terminal
Management System so the driver is
able to load. Since the data owners (the
carriers and suppliers) were the ones
who input the data, there are much less
errors and issues at the load rack than
they would otherwise experience. As part
of the roll-out, Toptech worked with each
A new feature will allow
suppliers the ability to
optimally manage their
resources, empowers their
customer to input their own
information, and enables
the terminal to receive the
data accurately
of the suppliers to train them and perform
testing with their systems. This integrated
solution freed the terminal owners to
focus on what’s important to them
and empowered the rest of the supply
chain by having their essential data and
transaction information at their fingertips.
analytics for continual improvement and
to keep their suppliers informed.
EVERYONE BENEFITS
Toptech’s focus on building solutions
that serve the entire supply chain also
allows everyone to benefit from updates
and feature enhancements. In fact, in
an upcoming 2021 release, Toptech will
introduce a new feature which allows
the suppliers’ customers to manage
orders and schedule loads directly. This
gives suppliers the ability to optimally
manage their resources, empowers their
customer to input their own information,
and enables the terminal to receive the
data accurately and efficiently. Ultimately,
drivers can begin loading fuel faster than
ever before.
For more information:
MULTILOAD II
In addition to Load2day, the terminal is
now benefiting from Multiload II, the only
preset in the world that can boast nearly
limitless flexibility with custom logic,
extended use with external expansion,
and easy maintenance with a roomy
interior. As the driver uses the preset, the
transaction information is sent directly
to TMS, the flexible, modular design of
which supports a variety of equipment
while providing the terminal operator
with essential visibility and control. Plus,
they have plans to begin utilising Synetics
to take advantage of the powerful data
Contact Toptech Systems for more
information about their holistic solution
utilising hardware, software, and
hosted services.
www.toptech.com
01 Synetics, Toptech’s business intelligence
solution for enhanced decision making
02 TMS7, Toptech’s terminal management solution
for optimal efficiency
02
PAGE 53
TECHNICAL TANK MAINTENANCE
STREAMLINING TANK
INSPECTIONS WITH
VISUAL FEEDBACK
Optically activated pigments highlight areas in need of repair, explain Justin Hair
and Michael Harrison from Sherwin-Williams Protective & Marine
FOR aboveground petroleum
storage tank owners, 10-year
inspection intervals often present some
challenges. Inspections are necessary to
ensure owner compliance, tank integrity
and safety, but they also carry a high cost
– sometimes upwards of US$500,000
(€424,000). The longer a tank is out of
service for repairs, inspections and lining
applications, the higher the cost due to
lost storage capacity.
The ongoing cost of ensuring tank
integrity is unavoidable. Most often, the
American Petroleum Institute’s
API 653 standard (Tank Inspection,
Repair, Alteration and Reconstruction)
is required or referenced. Depending on
the tank, it will either require a thorough
evaluation of an existing lining for
return to service (if it’s performing as
expected with only minor damage) or the
installation of a new lining. The faster you
can complete these activities, the quicker
you can return the tank to service.
An existing lining needs to be visually
inspected. Such inspections can move
much faster – and be more thorough –
when the existing lining is embedded with
optically activated pigments (OAPs), such
as linings featuring Sherwin-Williams
Opti-Check technology. The embedded
OAPs will provide obvious visual
indicators of coating deficiencies when
inspectors shine an eye-safe ultraviolet
(UV) light on the lining, following
techniques and equipment guidelines
described in SSPC Technology Update
No. 11 – Inspection of Fluorescent Coating
Systems (Figure 1). This pronounced
visual feedback enables inspectors to
move faster, while helping them better
spot pinholes, holidays or discontinuities
in the lining that should be repaired.
Tank lining systems embedded with OAPs
also offer quality assurance and timesaving advantages when applying a new
lining. The pigments enable applicators
to detect and repair coating deficiencies
during the application process, which
reduces repair needs following holiday
detection processes on newly applied
linings. This OAP-enabled efficiency
PAGE 54
01
allows tanks to be put into or returned to
service more quickly.
This article will review brief lining
specification fundamentals, as well as
two common field inspection scenarios
– assessing an existing lining featuring
OAP technology and inspecting an unlined
tank that requires a new lining. In both
cases, OAP-embedded lining systems
provide a greater likelihood for streamlined
inspections and longer-term service.
TANK LINING FUNDAMENTALS
The first step to enabling faster tank
inspections is to use robust lining
materials that can withstand the rigours
of long-term corrosive chemical storage,
cleaning, and inspection activities. That
means selecting linings that:
• have sufficient flexibility as well as
chemical and temperature resistance
to accommodate various contents at
ambient and elevated temperatures;
• resist damage from impacts and
abrasions that may occur during
operation or cleaning processes; and
• are easier to clean.
The above properties help to accelerate
the inspection process because the
linings themselves are more likely to
02
remain in excellent condition between
assessments. With a well-applied,
durable lining in place, inspection-related
repairs are often limited to mechanical
damage that occurs during tank cleaning,
minimising touch-up needs. Choosing
systems that are also embedded with
OAPs provides a further inspection
efficiency boost.
Per API 653 guidelines, owners need
to periodically take tanks out of service
for various inspections. Operators will
first drain the contents and wash the
interior. Draining may be relatively fast
with light hydrocarbons, but contents
like crude oil will require shovelling out
solidified material – hence, the need for
an abrasion-resistant liner. High-pressure
water washing occurs next to remove oily
deposits. Here, an easy-to-clean lining
is especially advantageous. Thereafter,
inspectors will perform mechanical
checks of the tank surface, including
visual, ultrasonic, liquid penetrant and
other non-destructive testing. They may
also conduct destructive cross-cut and
pull-off adhesion tests on the lining. These
compromised areas will require repairs.
For the final assessment, inspectors
will perform a careful visual check of
the entire lining to ensure no pinholes,
TECHNICAL TANK MAINTENANCE
holidays or discontinuities are present.
Such voids in a lining indicate weak areas
that may be prone to cracking, blistering
or delaminating – any of which can open
the door for pitting and corrosion of the
steel tank substrate. Therefore, catching
these deficiencies is critical during
inspections to extend the tank lining life.
SCENARIO 1: INSPECTING AN
EXISTING TANK LINED WITH OAPEMBEDDED COATINGS
In this first scenario, inspectors will assess
an existing 10-year-old aboveground
petrochemical storage tank that was lined
prior to initial service with one coat of an
OAP-embedded lining system.
Visually inspecting a lining without
embedded OAPs requires careful
attention, as tiny pinholes can be quite
difficult to see. Inspectors will concentrate
heavily on weld seams, annular plates,
chime areas, rim plates, vapour spaces
and any visible wear. Inspectors are most
often at the mercy of their vision to catch
hard-to-see lining voids.
In addition, because this tank has been
in service, applicators do not have the
advantage of using holiday spark testing
to inspect the lining for voids. Such testing
is only suitable for newly lined tanks
as per NACE SP0188 – Discontinuity
(Holiday) Testing of New Protective
Coatings on Conductive Substrates.
Existing linings that have been in service
tend to absorb commodities and could
therefore spark significantly, providing
erroneous holiday test readings. There’s
also a safety concern, as tanks may
contain fumes or hydrocarbon deposits
that could ignite during a spark test. In
addition, sparks may damage the lining
and are not recommended for evaluating
existing linings.
When OAPs are embedded in a singlecoat lining, any deficient areas stand
out distinctly under UV light. The lining
will fluoresce with a pink hue where
inspectors shine their UV light. Dark
areas indicate a lining deficiency, such as
damage, pinholes as small as
0.25 mils (0.006 mm), holidays,
nonuniform coverage or improper film
thickness (Figure 2). These easy-to-spot
areas can then be repaired or touched up
before returning the tank to service.
evaluate a 10-year-old aboveground
petrochemical storage tank that was not
lined prior to its initial service. Owners
may forgo linings in cases in which a tank’s
contents are not expected to rapidly
compromise the integrity of the steel.
Still, most unlined tanks will show at least
some pitting – if not a lot of it – after a
decade of storing hydrocarbon products,
which almost always contain water.
Therefore, tank owners and operators
know lining installations are likely required
following inspections. In these cases,
linings embedded with OAPs can help
installations go faster, while increasing the
likelihood of long-term performance.
Due to the prevalence of pitting in
existing unlined tanks taken out of
service, lining such tanks usually
requires two coats. When using OAPs,
the primer will feature the embedded
pigments, providing two helpful quality
control measures:
• OAPs enable inspectors and
applicators to easily and immediately
identify voids during the primer
application process – in this case, a
flowable primer. Just like in scenario
one, the OAP-embedded linings will
fluoresce pink in most areas, while
any holidays will contrast sharply as
dark voids. Inspectors and applicators
can check for such areas while the
coatings are still wet, enabling them
to immediately respray deficient
areas. The visual feedback helps to
ensure the entire primer application is
essentially holiday free.
• Second, when applicators apply the
final finish coat and use a UV light,
OAPs embedded in the base layer
will shine through the non-pigmented
finish coat anywhere it has not
been applied properly (Figure 3).
Applicators can then repair those
areas while the linings are still wet
during the application process.
Using lining systems embedded with OAPs
not only helps to ensure the integrity and
quality of the lining installation but also
enables future inspection efficiencies. Much
like in scenario one – but in the opposite
way – the visual feedback of fluoresced
areas shining through the finish coat under
UV light will be obvious.
OAPS ENABLE FASTER,
BETTER RESULTS
With the goal to streamline both tank
inspections and the application process,
tank owners and operators can benefit
by specifying lining systems that are
embedded with OAPs. The pigments
are a unique asset evaluation tool that
allows inspectors to locate areas of noncompliance in a lining much more easily,
compared to inspecting non-pigmented
linings that offer no visual feedback.
Applications, inspections and repairs can
therefore move quicker, enabling faster
returns to service, while also ensuring
more robust linings that will provide
extended long-term service.
For more information:
Justin Hair is North America – oil &
gas midstream market manager, and
Michael Harrison is global product
director – linings, both for SherwinWilliams Protective & Marine. They can be
reached at [email protected]
and [email protected],
respectively.
01 Optically activated pigments (OAPs) embedded
in this single-coat lining system featuring
Sherwin-Williams Opti-Check technology
provide a distinct visual indication of a pinhole
and some coating discontinuities in the weld
seam
02 When inspecting single-coat linings featuring
OAPs, dark areas will indicate coating
deficiencies. The rest of the coated areas will
fluoresce
03 In this two-coat system, OAPs embedded in the
base coat shine through the topcoat and appear
pink under UV light (right), indicating a pinhole
and some thin areas that will need to be repaired
* All photos courtesy of The Sherwin-Williams
Company
03
Because the OAPs provide such
noticeable visual feedback, inspectors
can move faster through a tank,
streamlining the process, and are more
likely to catch tiny defects, extending the
lining system’s life expectancy.
SCENARIO 2: INSPECTING
A NEW TANK LINING PROCESS
USING OAPS
In this second scenario, inspectors will
PAGE 55
TECHNICAL ENTERPRISE ASSET MANAGEMENT
HSE SIMPLIFIED
Integrating HSE and maintenance into an enterprise asset management (EAM)
system is the key to assured compliance, says Ultimo’s Chris van den Belt
AMONGST THE largest and most
infamous industrial accidents in
history is the 1984 Bhopal disaster
in India. A runaway reaction in a tank
containing methyl isocyanate vented
lethal quantities of this poisonous
chemical into the atmosphere. Death toll
estimates range from 3,700 to 16,000.
On a smaller scale, deaths and injuries
caused by storage tank explosions
continue to this day. Examples from the
last two years alone include those from
liquid solvent tanks at a waste incineration
site in Germany, a chemical tank at a
wastewater treatment plant in the UK, a
crude oil tank at a terminal in the US, fuel
tanks at a refinery in Indonesia, and more.
As these examples demonstrate,
managing health, safety and environment
(HSE) in relation to storage tanks is
complex. Workers handle substances
which may be explosive, flammable,
toxic, harmful to nature, or hazardous in
other ways. To complicate things further,
storage facilities must be managed and
maintained in conjunction with a diversity
of connected plant equipment.
Maintenance activities are vital to
controlling risks, but at the same time,
they expose workers to hazards, and
if executed incorrectly, they generate
further risks. Businesses need to
01
PAGE 56
comply with HSE legislation, such
as the EU’s Seveso III Directive, and
most have community and employee
care principles that go beyond the
minimal legal requirements. Meanwhile,
economic drivers to avoid accidents
include potential repair, clear-up and
compensation costs, productivity losses,
fines and reputational damage.
CUTTING THROUGH
THE COMPLEXITY
The first problem solved by an EAM
system is that of maintaining a clear
overview. Instead of using separate
systems for information on the
operation’s assets, their maintenance
and the related HSE processes, the
EAM cloud platform brings everything
together into one place. HSE and asset
management become fully integrated
and functionally linked in a system which
signals the condition and status of assets
in real time. Digitalisation and integration
avoid duplication, reduce effort, increase
efficiency and give a clearer picture.
WORK PERMITS
AND LOCKOUT-TAGOUT
Crucially, the leading EAM systems not
only set HSE processes and procedures
but also enforce them, by permitting
maintenance tasks to go ahead only
when all the required safety steps have
been taken. In other words, they ensure
automatic and demonstrable compliance.
Work permits issued in this way are
central to the step-by-step functionality of
Ultimo’s environment, health and safety
(EHS) software.
Via joint decision, it specifies the
necessary safety measures and who
will take them. Its digital administration
begins with receipt of a job request
(work order). Appropriate staff members
prepare the work permit and digitally
validate it at each stage to confirm its
issue, extension (if necessary) and, finally,
completion. Full details, including task risk
analysis and lockout-tagout conditions,
can be viewed at any time.
The system’s lockout-tagout (LOTO)
module prevents equipment from starting
up unexpectedly during maintenance
work. Locks are placed on parts of the
plant – or processes – that need to
be isolated for safety, along with tags
identifying the person placing them. Only
that person can authorise tag removal
and unlocking.
Prior to issuing a work permit, the
number and position of locks and tags
is determined by those holding the
TECHNICAL ENTERPRISE ASSET MANAGEMENT
appropriate knowledge and responsibility.
This may be aided by reference to
digital templates and P&IDs (piping and
instrument diagrams) on the system
(See Figure 1). The work permit process
ensures they stay in place until the work
is finished.
MANAGEMENT OF CHANGE
While some maintenance-related
activities are routine, others bring
about changes to a plant’s equipment
or processes. Examples include
fitting a new valve type instead of a
like-for-like replacement or storing a
different material. In Ultimo, these can
be introduced safely using processes
governed by the management of change
(MoC) module.
Instigated by a request for modification,
changes are managed from the earliest
planning stage to completion. Like all
Ultimo EHS software modules, MoC
sets a structured process, aided by
checklists and enforced by validation
procedures. This module makes users
consider, in advance, the change’s
potential consequences and how to
reduce the associated risks. It also
enables modification projects to be
efficiently integrated with the existing
flow, processing and management of
maintenance jobs. After completing
changes, the MoC process concludes by
assessing whether the intended results
have been achieved.
As well as ensuring safety, the MoC
module saves hugely on time and
complication compared to conventional
paper-based practices. All relevant
information, documents and records
of communication are saved in one
location, and assessments, signatures
for approval and other actions can take
place simultaneously.
INCIDENT MANAGEMENT
EAM can also play a key role in incident
management and reporting. In Ultimo,
this is managed through EHS incidents
module. When an incident or near miss is
reported, the designated safety officer is
immediately alerted. By learning from the
new event and any previous issues, the
platform aims to reduce the number and
impact of future incidents.
The safety officer first ensures full
recording, processing and correct
registration of the incident. EAM software
minimises the number of steps needed,
and with much of the background
information already on the system it
is easy to gather relevant details. An
incident record is emailed to the reporter
and supervisors and made accessible to
authorised users, and immediate safety
measures are documented.
After an initial risk analysis, the safety
officer determines whether further
examination is needed. The process
investigates an incident’s consequences
and seeks both immediate and root
causes. By connecting information on
assets and their maintenance history with
risk assessments and records of previous
incidents, near misses and problem
areas, the software readily enables trend
and root cause analysis. Based on its
results, new safety measures are defined
and implemented, and follow-up work is
planned. The process goes on to evaluate
these measures, and assess any residual
risk, before their final approval as a
permanent safety solution.
For example, consider a sudden tank valve
leak. After immediate safety measures to
minimise its impacts, an incident report
may recommend repair or like-for-like
replacement of the valve. Alternatively,
analysis may reveal a pattern suggesting
that a different type of valve is needed.
That would initiate the MoC process,
which in turn might call for a task risk
assessment and lockout-tagout procedure
before a work permit could be issued for
the new valve’s installation.
DEMONSTRABLE CONTROL OF HSE
Utilising EAM to manage essential HSE
practices can provide managers with
a clear and accurate overview of the
plant’s safety processes and block unsafe
practices. It can help contribute to better
control over assets and the way they are
managed, and, ultimately, give peace of
mind that vital HSE processes are always
taken care of.
For more information:
Chris van den Belt is the team leader
product management at Ultimo.
www.ultimo.com
01 Visual guide to location of locks and tags
CASE STUDY: OPTIMISING
VTTI’S SAFETY WITH EAM
Antonis Constantinou, project manager at VTTI, explains how Ultimo’s EAM works
for his company.
VTTI is a leading provider of oil, chemical and gas storage, with 17 terminals
strategically located in major logistics hubs across the globe. For many years,
we have used internally developed software to manage the maintenance of
our assets. As pacesetters in our field, we needed to extend our maintenance
practices to match modern asset management strategies, therefore we switched
to Ultimo’s EAM platform in 2017.
The challenges of our industry’s operating environment mean that having an
effective EAM system is essential. We must be ready to variate our operational
framework at a moment’s notice in response to the commercial fluctuations in
the markets, to meet our customers’ changing requirements in a safe manner.
A robust EAM system ensures that the terminals’ assets are always available
and reliable. What’s more, it helps optimise operational efficiency through the
monitoring of the condition of our assets throughout their lifecycle while ensuring
that key health and safety processes are managed precisely and efficiently.
We use EAM to control our maintenance processes, including work permits and
energy isolation. Managing these tasks in the EAM platform gives us complete
control. Safety control measures cannot be bypassed without authorisation,
and jobs cannot progress unless the safety requirements prescribed have been
fulfilled. Having a digital log of every action taken simplifies incident investigation,
reporting and lessons learnt. By linking technical data from our assets to the
related information from the safety processes, we gain valuable insight into their
performance in the context of operational safety. The digital records also help
prove compliance to internal and external auditors.
The EAM platform is integral to how we operate, but it has taken a lot of work to get
to where we are now. We have very specific requirements and have invested a lot
of time developing the platform with Ultimo to ensure it offers all the features we
need especially in the context of asset performance and monitoring, operational
safety, work permits and energy isolation. The customisability of the software, and
Ultimo’s willingness to tailor it to our needs, was one of the main reasons we chose
Ultimo over other EAM providers.
PAGE 57
TECHNICAL DIGITALISATION
W ENERGY SOFTWARE
TRANSFORMS PHILLIPS 66
OPERATIONS
Michael Ferrante from W Energy Software discusses digital oilfield
advancements in tank storage accounting and measurement
AMIDST the digital oilfield, paper
tickets, paper invoices, even faxes
continue to be part and parcel of many
terminal operations. Digital systems tend
to be built with older, legacy technology,
create data silos, and are inflexible and
difficult to use. The result is a mixed bag of
commercial products, internally developed
solutions, and disconnected workflows for
invoicing, scheduling, inventory, balancing,
and regulatory reporting. Manual
processes and a fragmented information
landscape persist at a time when terminal
operators need a single view of complex
supply chains and rapidly changing
customer demand.
Terminals must efficiently track the
movements of hydrocarbons between
interconnects and across tank farms.
Cloud and unified software systems are
enabling service providers to accelerate
the flow of information and automate
the back office from accounts receivable
and tank gauging to nominations and
confirmations. With next generation
terminal management and measurement
capabilities, service providers like Phillips
66 are navigating operational and market
complexity, streamlining workflows, and
reducing costs.
MANAGING MULTIFACETED
TERMINAL ACCOUNTING
COMPLEXITY
Every component of a terminal operation
introduces a different layer of accounting
complexity. Nominations arrive from
shippers in varying physical or digital
formats; confirmations may be returned
in similar fashion. Customer specific
rates for various throughput fees must
be meticulously tracked and applied to
large numbers of transactions. Preparing
shipper invoices is all too often a timeand labour-intensive process.
Maintaining up-to-date inventory across
dozens of tanks is often impeded by
manual processes and data delays.
Operators must accurately measure and
perform complex calculations to compare
actual volumes to received volumes, a
tough task, especially for facilities that
store multiple grades of crude and many
types of refined products.
Shipments are moving in complex
new ways. Increasingly, terminals are
managing intermodal tickets using a
mix of transportation modes, including
pipeline, truck, railcar, vessel, and barge.
And last but not the least, is regulatory
accounting complexity that places a
heavy burden on terminal operators to
comply with ever evolving filing policies,
such as the Excise Summary Terminal
Activity Reporting System (ExSTARS).
THE INFORMATION LANDSCAPE
OF A TANK FARM
For decades, terminal operators have
taken two approaches to manage the
accounting and information management
complexities. First are ‘home-grown’
solutions, custom-developed terminal
management software that meets their
specific business needs. Such solutions
W Energy Software’s Oil and Gas SaaS Platform for
the Energy Value Chain
01
Compressor Station
Energy Value Chain
Wellhead
Plant
Intrastate Pipeline
Chemical Plant
Transportation
Water
Disposal
Terminal
Transportation
Refinery
W Energy Software
Capabilities
crude
water
NGLs
•
•
•
Lease Admin/GIS
Division Order
AFE
•
•
•
Joint Interest Billing
Production Operations
Marketing
•
•
•
Revenue Accounting
Tax & Regulatory
Fixed Assets/DD&A
•
•
•
Purchasing
Materials Inventory
Financial Accounting
•
•
Measurement
Produced
Saltwater Disposal
MIDSTREAM
ERP SUITE
•
•
•
•
Field Data Capture
Volume Balancing
Accrual
Terminal Mgt. & Schedule
•
•
•
•
Gas & Crude Gathering
Plant Accounting
Liquids Transportation
Crude First Purchaser
•
•
•
•
Contract Management
Marketing
Tax & Regulatory
Right of Way (ROW)
•
•
•
•
Division Order
AFE
Forecasting
Financial Accounting
•
•
Measurement
Produced
Saltwater
Transportation
TRANSPORTATION
& TERMINAL MGT.
•
•
Liquids Transportation
Terminal Management
•
•
Tank Gauging
Measurement
•
•
Physical Trading
Financial Trading
•
•
Confirmations
Scheduling
•
•
Actualization
Accruals
•
•
Invoicing
Risk Management
•
•
Credit
Inventory
Accounting
COMMODITY
MANAGEMENT
DASHBOARDS & REPORTS
PAGE 58
natural gas
UPSTREAM ERP
SUITE
TECHNICAL DIGITALISATION
trade heavy customisation for the agility
needed to adapt to evolving business
needs. The cost can also be staggering,
adding headcount for developers and
support staff. There is also risk if the
people who know the inner workings of a
home-grown solution quit or retire.
Such solutions are often owned and
maintained by information technology
(IT) departments whose priorities are
different to the midstream business,
including cost reduction, standardisation,
and infrastructure security. Enhancing a
legacy system for new business scenarios
is necessarily given lower priority in an
overworked department. Companies are
realising that in order to meet customer
needs they need flexibility and technology
partnerships to succeed, effectively
getting out of the software business and
trusting in software vendors.
The other approach to managing terminal
accounting complexity prioritises ‘best
of breed’ software where solutions are
selected to manage a specific terminal
management workflow, trading narrow
yet specific functionality for lower cost
of building and maintaining software
internally. The result is a fragmented
information landscape and data
silos. A service provider’s accounting
software can’t handle nominations and
confirmations. Inventory management
is disconnected from scheduling.
Measurement and balancing are managed
in separate software or spreadsheets.
The reality is that most operators rely on a
mix of home-grown and older commercial
software. This fragmented information
landscape is expensive to maintain, fails to
meet evolving business needs in a timely
fashion, and creates barriers to strategic
and daily decision making.
DIGITAL TRANSFORMATION
POWERED BY THE CLOUD
Terminal operators need innovative
solutions that bring disparate accounting
workflows together, eliminate data silos,
and accelerate decision making. Even with
newer terminal management software,
lack of integration and functionality
gaps persist while software vendors
overpromise what they can deliver. Digital
transformation is bringing powerful new
capabilities to midstream companies.
The cloud has become ubiquitous
even within the energy industry where
change often takes many years. The next
wave of innovation on the cloud is less
about where applications are hosted
and accessed and more about how
software is built to take full advantage
of the cloud’s on-demand storage and
high-performance computing. Pioneers
include W Energy Software whose cloudbased oil and gas enterprise resource
planning (ERP) is deployed at more than
100 midstream facilities, supporting
the movement of 1 billion barrels of
oil per month through transportation
and storage systems. The company’s
ERP platform is a true, native cloud
application, enabling a service provider
to bring isolated terminal management
accounting workflows together in one
unified solution that shares a common
database and consistent and intuitive
user interface. This approach, along with
a continuous innovation process, opens
powerful new ways of managing not
just terminal operations, but the entire
value chain in one unified ERP, including
gathering, liquids and natural gas
transportation, terminal management,
scheduling, processing, and marketing.
The implications for managing the
accounting movement of hydrocarbons
are profound, enabling the following
workflows to be efficiently managed.
• Intermodal receipt and delivery:
complete transportation management
system for tracking cross-commodity
shipments in real time across pipeline,
truck, rail, vessel, and barge.
• Self-service shipment scheduling:
Cloud-based customer activity
management capabilities enable
shippers to manage nominations and
confirmations, view inventory, and
make changes.
• Inventory management and accounting:
Track volumes received and compared
to daily actuals, integrated with
accounting to accelerate accounts
receivable invoice preparation.
• Tank gauging and balancing:
Advanced measurement capabilities
streamline manual tank gauging
and automatically perform volume
corrections for different grades of
crude and refined products.
• Internal and external reporting:
Single terminal management solution
eliminates data delays, providing
management with timely access to
terminal key performance indicators
(KPIs) and accelerating regulatory
data preparation.
PHILLIPS 66’S BEAUMONT
TERMINAL: CASE STUDY IN
DIGITAL TRANSFORMATION
With 74 tanks and capacity to store
16.8 million bbl of crude oil and refined
products, the Texas-based Beaumont
Terminal is the largest storage facility in
the Phillips 66 portfolio, accommodating
shipments from pipelines, railcars, and
barges. Phillips 66 had previously used a
legacy software solution to track customer
inventory. Growing customer demand and
the necessity to manage 18 types of refined
products and different grades of crude oil
led to increasing accounting complexity.
The Beaumont Terminal’s extensive
footprint and commodity storage
requirements also created complex
measurement challenges for Phillips
66. It needed to account for loss and
gain across large volumes and numbers
of transactions, requiring complex
calculations that vary for each type of
crude and refined product.
Phillips 66 partnered with W Energy
Software to deploy its cloud-based
terminal management solution, tailored to
the unique accounting complexities of the
Beaumont Terminal. The solution enables
the service provider to capture daily and
monthly tank balances, manage contracts,
rates, and periodic fees for dozens of
customers, and create tickets for unit
train, railcar, and barge. Additionally,
Phillips 66’s regulatory reporting team
benefits from streamline ExSTARS
data preparation, further enhancing
operational accounting efficiency.
As a charter member of W Energy
Software’s Measurement Product
Consortium, Phillips 66 collaborated with
the software developer to pioneer new
measurement capabilities for terminal
operations that are being made available
through its WE Measure solution slated
to be released in Q4 of 2021. Through this
innovation partnership, the Beaumont
Terminal benefits from advanced tank
gauging and measurement functionality
to track and balance volumes for 18
different types of crude oil and refined
products as well as measurement
calculations for tickets.
To succeed, terminal operators need
agility from their digital systems, as
midstream storage facility customers
find new ways to move hydrocarbons
along pipelines, in trucks, along railways,
and on barges. And as business and
accounting complexity increase –
adding more contracts and injecting
new measurement challenges – along
with expanding infrastructure, more
terminals are being upgraded with the
latest cloud technologies to automate
accounting workflows, cut costs, and
respond to shifting markets faster.
Increasingly, midstream companies are
embracing technology partnerships
with innovators like W Energy Software
to continuously deliver the accounting
capabilities that solve the terminal
management challenges of today and
tomorrow.
For more information:
This article was written by Michael
Ferrante, VP of transportation at
W Energy Software.
www.wenergysoftware.com
01 W Energy Software’s oil and gas SaaS platform
for the energy value chain
PAGE 59
TECHNICAL TANK TELEMETRY
HELPING FUEL OIL
DISTRIBUTORS TO
IMPROVE PROFITABILITY
Nick Hawkins from Kingspan on why companies shouldn’t miss out on new tank
telemetry technology
TANK TELEMETRY has
undoubtedly been one of the great
advances for the fuel and oil storage
sector in the last 10 years.
01
02
Many millions of the basic, firstgeneration, devices have so far been
installed across the globe as customers
take advantage of a gauge that allows
them to check their supplies from the
comfort of their own home or office.
But that’s far from the end of the story.
New, smart, connected devices are
underpinning improved, distributor
business models, and they can help
distributors meet changing customer
expectations, shaped during the recent
pandemic lockdowns.
WHAT IS TANK TELEMETRY?
Around one million UK households
currently rely on oil for their heating
and hot water, and increasingly fuel
oil distributors (FODs) and tank
manufacturers are pre-fitting telemetry to
their tank population.
The new connected tank telemetry
devices use either ultrasonic, radar, or
hydrostatic pressure to measure the
amount of oil in the tank and provide data.
The main benefits that this provides for
end-users include:
• Accurate and easy 24/7 monitoring
displayed on a smart phone or tablet
• Better understanding of usage
levels (including seasonal peaks
and troughs) that can inform future
fuel usage
• Predicted run-out dates
• Sudden drop or theft alerts
• Ability to measure remote property
fuel levels
• Manage fuel for an elderly relative or
neighbour
• Peace of mind that they will never run
out unexpectedly
Acting early on this information allows
customers to plan for, and buy, their oil
judiciously. Plus, tank telemetry can add
a layer of security to customer supplies
PAGE 60
by sending out push notifications to alert
users to any sudden drops in oil levels as a
result of a leak or theft.
03
Growth in the market has been helped
by telemetry’s versatility: there is now a
technology solution for every application,
from plastic tanks, steel tanks, domestic
or commercial situations, to diesel
dispensers and mobile bowsers.
DATA GENERATION &
CONNECTIVITY
These new ‘smart’ devices are
compatible with a range of connectivities
such as 2G, 3G, 4G, NB-IoT, LoRa &
SIGFOX. And with radar technology there
isn’t even the need to drill a hole in plastic
tanks owned by domestic customers.
They not only provide a point-in-time level
for end-users – they can also transmit
and record:
•
•
•
•
•
•
real-time location (GPS);
fuel temperature;
fill amounts;
single event dispensing;
usage over time; and
fuel management.
In short, they generate data – and data,
as we all know, is becoming more valuable
day-by-day.
The relative reduction in hardware
costs coupled with the transformation
in choice, coverage, and reliability of
new connectivities is now accelerating
the widespread adoption of this smart
tank technology, creating a huge
data mine.
It also offers FODs the opportunity to
view and monitor – as well as export –
customer tank data across their entire
footprint; data which can be provided
to them via secure servers that also,
incidentally, offer mapping functionality.
Mapping means the FOD can use this
TECHNICAL TANK TELEMETRY
data for more than simply generating
customer orders; they can use it to
reduce delivery frequency and optimise
routing. Again, this offers major business
benefits, from better resource and
asset (vehicular) planning to operational
efficiencies such as optimising payloads.
Essentially, the data allows more
accurate forward planning for FODs,
significantly cutting travel times to
customers as well as reducing delivery
frequencies and lowering left-on-boards;
all key performance indicators (KPIs) for
business efficiency ratings.
Given that FODs only make money when
they are pumping, any improvement in
efficiency should (everything else being
equal) also have a positive impact on the
bottom line.
THE NEW BUSINESS
MODEL FOR FODS
There is clear evidence backing these
claims. European countries were early
adopters of this low-cost, high-accuracy,
high-reliability, data-gathering, tank
technology, and their FODs have been
equally quick to realise its potential.
These FODs not only link the data via API
feeds to their fuel management software
in order to auto-generate customer
orders, they also link the information
to routing software, allowing them to
optimise fleet efficiency.
Some are going further and basing their
entire business around fleet optimisation
and route planning. This has the knockon effect of removing the customers’
decision to purchase because their FOD
can now effectively manage their fuel
supplies. Their fuel arrives automatically
in the same way that gas and electric just
arrive at properties connected to the grid.
And the enabler that underpins this
business model is smart telemetry. It
has created major operational gains
for those distributors, allowing them to
achieve significant efficiencies while,
at the same time, improving customer
service, retention levels, and smoothing
the demand curve.
04
New, smart, connected
devices are underpinning
improved, distributor
business models, and can
help distributors meet
changing customer
expectations, shaped during
the recent pandemic
But that’s not all. Greater FOD
operational efficiencies are also good
for the environment: better forecasting/
planning has been shown to lower
carbon emissions and assist in achieving
emissions scope targets.
Plus, the system can significantly improve
customer service. By agreeing to share
their data with an FOD, a customer no
longer has to monitor their own oil levels
or plan for restocking; all this is taken care
of for them by the distributor. This doesn’t
just take the weight of responsibility off
the customer; it also offers an additional
business benefit for the FOD. By signing-up
to the service, a customer will be agreeing
to regular direct debit payments, which
effectively brings to an end any adhoc
spot-buying behaviour. The result is that
customer loyalty and retention levels rise.
MEETING CUSTOMER DEMAND
IN A POST-COVID WORLD
The dramatic increase in consumer online
purchasing seen during lockdown is a
trend that is probably going to continue,
even when restrictions are lifted, and one
of the most notable impacts that buying
online has had is to stimulate faster
delivery times. Consumers want their
purchases to arrive as quickly as possible
– ideally the next day.
Meeting a short deadline may be possible
when demand is low, but when demand
peaks – as it does for the fuel/oil sector
during bad weather – then delivery times
are likely to be stretched.
05
In fact, it’s almost impossible for any
FOD to provide a next day service at
periods of high demand, however great
the customer need. To do so, means
stockpiling supplies and mothballing
resources, including tankers, for lengthy
periods during the year. Given the
relative unpredictability/infrequency of
these adverse weather events this is not
an option.
What’s more, these peak periods can be
times of huge frustration and expensive
waste for FODs. In their panic, customers
often book more than one delivery – on
the basis that the first FOD to arrive will fill
the tank. Since customers are not always
vigilant at cancelling orders from other
suppliers, which may be in transit at the
time, it can lead to many fruitless journeys.
Tank telemetry offers a solution. By
organising and scheduling deliveries in
advance, FODs can ‘smooth the demand
curve’, reduce the levels of pressure
on their companies, and keep all their
customers comfortably topped up.
IN CONCLUSION
The UK’s storage tank sector is entering a
new and exciting era.
Smart tank telemetry is becoming
more ubiquitous and improvements in
connectivity means that secure access
to the data it provides now extends to
FODs. Technology has turned static oil
containers into intelligent fuel storage
solutions, enabling FODs to harness
customer data and use it to meet
heightened customer expectations and
improve their businesses.
As studies on the continent have proved,
it’s a trend that FODs should take notice
of if they are not to miss out.
For more information:
This article was written by Nick Hawkins,
Kingspan’s commercial director UK &
Ireland.
www.kingspan.com/gb/en-gb
01 Watchman Access fleet fuel management
system
02 Tank telemetry now integrates with Amazon’s
Alexa
03 Kingspan Connect app: Easy 24/7 oil tank
monitoring on a smart phone or tablet
04 Watchman WAPex remote tank monitoring
system using 2G, 3G, 4G and radio frequency
connection
05 Watchman Radar: precision monitoring for
tanks up to 3 m high
PAGE 61
TECHNICAL MICROBIOLOGICAL CONTAMINATION
MICROBIOLOGICAL
CONTAMINATION – REDUCING
RISK IN A PANDEMIC
Mark Busch at Conidia Bioscience looks at how single use immunoassay
fuel test kits can help
MICROBIOLOGICAL
contamination (fungi and bacteria
in fuel) is a serious risk to tank storage
operations, especially if fuel turnover
is lower. However, there are some fast,
economical steps that can be taken to
prevent unnecessary costs and risks
to business.
The really bad news is that
microbiological contamination is
transferrable along the fuel supply chain.
The challenge is to manage the levels
of risk efficiently and economically. Of
course, while living through a pandemic,
consideration also needs to be given to
the risks posed to staff and the public by
carrying out unnecessary activities.
ORGANIC MATERIALS
Like a piece of bread, fuel is an organic
substance. Also like a piece of bread, fuel
can go mouldy. Mould, along with yeast, is
a form of fungus and grows over time. The
longer it is stored, therefore, the greater
the risk that this naturally occurring
microbiological contamination will thrive.
Fuel inherently contains water in some
form as soon as it leaves the sterile
environment of the refinery. Water can
be picked up at any point in the supply
chain; in pipelines, storage tanks and
fuelling trucks. It can also naturally enter
storage tanks due to condensation,
making it impossible to keep it completely
out of the supply chain. Of course, many
companies will have sophisticated wet
stock management with water sensory
equipment, but even the smallest
amount of water (far from the levels these
mechanisms can detect) can improve
conditions for microbiological growth.
WHAT IS THE LEVEL OF RISK?
During the pandemic, national lockdowns
have created a slump in the use of
fuel across aviation, marine and land
transport. Grounded aircraft, working
from home, school closures, and
decimation of the cruise industry have all
contributed to reduced fuel consumption.
Even where fuel turnover remains high,
additional care should be taken that
incoming fuel supplies are
not contaminated.
‘The ‘diesel bug’ is something that anyone
storing fuel in bulk is generally aware of,
but maybe not of the increasing risks it
poses,’ says Rachel Harrison at UK fuel
management software company Fueltek.
PAGE 62
FUEL TESTING, FAST AND SIMPLE
Although it is good practice to remove
as much water as possible from fuel
supplies, coupling this with a sound
testing regime will provide a clear
picture of what is going on inside storage
tanks. By understanding the level of
contamination in a storage tank, smarter,
more economical decisions can be made
about what actions to take without just
decanting the fuel, cleaning tanks, and
adding an additive such as biocide at first
suspicion of contamination. Estimates
for cleaning and treating an underground
storage tank can be up to as much
£20,000 (€23,500). Any alert system
that helps earlier intervention to apply
a cheaper solution is, therefore, almost
certainly a good thing to consider.
A testing regime developed over time to
optimise testing frequency will reduce the
risk of major impact from microbiological
contamination. There are two broad
options for testing: sending samples to a
laboratory or using onsite test kits. While
sending fuel samples to a laboratory may
appear to be the simpler option, the time
to get a result can be significant, especially
when laboratories are overwhelmed with
Like a piece of bread, fuel
is an organic substance.
Also like a piece of bread,
fuel can go mouldy.
Mould, along with yeast,
is a form of fungus and
grows over time
other testing. Even in ‘normal’ times,
however, testing of samples taken offsite
needs to happen in a matter of hours as
when samples are preserved in transit, the
microbiological community may change
and therefore the test results may not
be representative of the microbiological
growth in the tank. Samples need
to be stored/transported under
environmentally controlled conditions to
ensure microbiological growth remains
representative of the fuel from which
the sample was taken, and conditions
have not caused accelerated growth or
damage to the microbes. Transporting
fuel samples further increases the
opportunity for cross-contamination and
erroneous results. When looking to send
samples for offsite testing, then ASTM
6469 offers a Standard Guide for Microbial
Contamination in Fuels and Fuel Systems,
which advises testing the sample within 24
hours and transportation on ice for most
accurate results.
On-site testing using antibody
(immunoassay) test kits offer a simple
and economical alternative. There are a
few basic rules to follow for any testing
process, including ensuring sampling
points are effectively cleaned, sampling
equipment is cleaned between each
sample extraction, and, ideally, a new
sampling container should be used for
each sample to minimise risk of crosscontamination. Other than that, the
process is remarkably straight forward.
‘A regime of good fuel husbandry and
management should be in place, and
antibody test kits are a useful, inexpensive
tool to support this. We have used the
antibody testing kits extensively to satisfy
our customers’ demands to ensure they
are using clean uncontaminated fuel.
They have proved reliable and successful
and have added another income stream
to our organisation,’ says Harrison.
WHAT ARE ANTIBODY TEST KITS?
Antibody test kits are a well-proven
method of identifying specific molecules
and have long been used in the medical
TECHNICAL MICROBIOLOGICAL CONTAMINATION
01
industry. Today, many people are aware
of the term as they are used to test for
COVID-19 infection, but they are used in
many other areas, such as pregnancy
testing, for example. These kits use
antibodies that bind to a specific antigen
to detect its presence and produce a
measurable signal in response to this
binding that can be used to assess fuel
contamination levels. Microbiological
contamination correlates to the activity
of microbiological growth in the sample.
The amount of antigen produced
when microorganisms grow in the
fuel is measured for a known sample
size. This correlates to the number of
active microorganisms in the fuel and
produces a fully accurate indication of
contamination levels.
SIMPLE, COST-EFFECTIVE
TESTING, EASILY IMPLEMENTED
IN THE FIELD
Single use immunoassay fuel test kits
such as Fuelstat from Conidia Bioscience
clearly and accurately show levels of
contamination for major aerobic fuel
contaminates. They can be used by a
single person with minimal training,
requires no capital equipment, are
compliant to ASTM D8070, and are widely
used and recognised by the aviation
industry along with major international oil
companies (IOCs), and large machinery
manufacturers. If the results app is
The speed and ease of
using immunoassay test
kits mean the mitigation
of contamination risk can
be easily managed in
day-to-day operations
installed on a mobile device, this can
further be used to get an instant digital
verification of test results and to store and
share them with appropriate personnel,
wherever they are located.
The speed and ease of using
immunoassay test kits mean the
mitigation of contamination risk can
be easily managed in day-to-day
operations. Using this straightforward
method of onsite testing, tanks can be
protected from the risk of damage from
microbiological contamination while
unnecessary cleaning or biocide dosing of
tanks that do not have significant levels of
contamination can be avoided, reducing
both time and cost of operations.
During the pandemic, increasing testing
frequency to allow for the greater risks
posed to the fuel supply chain from
yearly to quarterly may increase testing
costs from US$100–400 (€170-340)
per year, but if this allows such early
detection of contamination so that only
a biocide and/or fuel polishing exercise
is required, and the cost of constantly
changing filters, tank cleaning, fuel
disposal or downgrading are avoided,
then the savings and operational uptime
benefits are significant and relatively easy
to achieve.
SUMMARY
With no upfront costs, in-depth training or
special handling required, immunoassay
test kits offer an economical way to
bolster fuel husbandry regimes and
protect from unplanned maintenance.
While the impact of the pandemic has
lowered fuel throughput and, therefore,
increased risk of contamination, more
regular testing using these test kits will
help lower maintenance costs and reduce
business risk. Ultimately, they offer a
remarkably simple, fast, and low-cost way
to make smarter maintenance decisions
and mitigate the risks of contamination.
For more information:
www.conidia.com
01 Fuelstat test kit and app
PAGE 63
TECHNICAL CYBER SECURITY
RANSOMWARE AND
INDUSTRIAL CONTROL
SYSTEMS
Chris van den Hooven from Hudson Cybertec explains how organisations can
protect themselves against ransomware attacks
ON 7 MAY 2021 a ransomware
attack took down the Colonial Pipeline
infrastructure. Ransomware is a form of
malicious software designed to encrypt
files on a device, rendering any files and
the computer systems that rely on them
unusable. Attackers then demand
ransom in exchange for decryption. In the
case of Colonial Pipeline the attackers
demanded a ransom of about US$5 million
(€4.3 million).
The impact of the attack on the largest
gasoline pipeline in the US was enormous.
Colonial had to shut down the operations
and within a day fuel shortages hit
Charlotte Douglas International Airport
and filling stations in Alabama, Florida,
Georgia, North Carolina, and South
Carolina. The restart of the pipeline
operations began on 12 May and
operations had returned to normal on the
15 May. Vehicle fuel supplies took some
time to return to normal.
THE INCREASING
RANSOMWARE PROBLEM
A ransomware attack is possible on any
type of IT infrastructure. There have
been many successful attacks on all
PAGE 64
kind of organisations. One of the most
recent attacks took place on Kaseya, a
company providing management and
security software to managed service
providers (MSPs). The MSPs provide
IT management services to their
customers. By attacking Kaseya, the
attackers ended up in affecting more
than 1,500 organisations.
In this situation, data is exfiltrated to
the attacker, before the ransomware
software encrypts the attacked system.
The attacker will threaten to leak or
auction off company secrets.
The ‘business model’ of such attackers is
proven to be very successful. The ‘market’
has become very professionalised and
organised. Chainanalysis estimated that
US$350 million in ransom payments
were made in 2020. The ransomware
groups apparently invested in even
better attack tools. There are specialised
criminal groups working together. Groups
writing the malicious software, groups
using this software against their targets,
groups laundering the money, etc. In 2015
cybercrime already was more profitable
than the drug trade.
A ransomware attack can be successful
against an industrial control system (ICS),
but most of the attacks are targeted
to business systems. However, even
attacks against business systems will
have an impact on the plant. In case of the
Colonial Pipeline attack, cybersecurity
reporter Kim Zetter suggested hackers
specifically had access to the company’s
billing system, rather than direct control
over the pipeline itself.
A common reaction to a ransomware
attack is to restore the systems from the
backup. The attackers anticipated in two
ways: encrypting the backups as well,
and introducing the ‘double extortion’.
Double extortion was a new approach
among ransomware groups in 2020.
PROTECTING AN ICS
AGAINST RANSOMWARE
In its publication Threat landscape for
industrial automation systems - Statistics
for H2 2020, security firm Kaspersky
published a percentage of ICS computers
on which malicious software was found
(and blocked). For the oil and gas industry
it was an alarming 44%.
Ransomware threats for ICS are growing.
In June 2021, the Cybersecurity and
Infrastructure Security Agency (CISA)
TECHNICAL CYBER SECURITY
released a fact sheet highlighting the
ransomware threats in 2021 in relation
to operational technology (OT) assets
and ICS.
‘Given the importance of critical
infrastructure to national security
and America’s way of life, accessible
OT assets are an attractive target for
malicious cyber actors,’ says CISA.
Obviously, this statement is true for many
parts of the world, including Europe.
GOVERNMENTS ARE RESPONDING
In reaction to the increasing ransomware
problem the US Transportation Security
Administration (TSA) on 20 July 2021
issued a second security directive
meant to strengthen critical pipelines
against cyberattacks. In Europe there is
a proposal for a revised directive on the
Security of Network and Information
Systems (NIS2 Directive). The NIS2
applies to many essential entities,
including tank storage of oil.
Another way governments seem to
respond is to attack the attackers. In
case of the Colonial Pipeline US law
enforcement agents successfully
retrieved roughly US$2.3 million of the
ransom paid. In the case of the attack
on Kaseya, the ransomware group
behind this attack, called REvil, seems to
have vanished. The reason behind this
is unknown, but the common belief is
that some government forced them to
disappear.
Ransomware has also become a
diplomatic issue for the US, because
the perpetrators of the attacks often
appear to reside in countries unwilling
to extradite them to the US, like Russia
or North Korea. US President Joe Biden
urged his Russian counterpart Vladimir
Putin to ‘take action to disrupt’ online
criminal organisations in Russia. The EU
and its member states have expressed
their solidarity with the US on the impact
of malicious cyber activities which the US
believes have been conducted by groups
operating in Russia.
PROTECTING AGAINST
RANSOMWARE
In order to protect an organisation,
it is important to understand how a
ransomware attack usually takes place.
A successful cyber attack, including a
ransomware attack, requires several
steps. The cyber security specialists
of Lockheed Martin were the first to
describe these steps as The Cyber Kill
Chain. The steps are similar to the steps
a common burglar might take if he
wanted to steal or damage goods from a
big office building:
1. Learn as much as possible from the
security measures in place. How do
employees enter the building? Do they
need badges? Is there a back door?
2. Find a way in. This could be sneaking in
during broad daylight by just mingling
with the employees coming back from
their lunch break.
3. Organise access on demand. This
could be stealing a company badge
or stealing keys from a back door, by
which the attacker can get access any
time he wants.
4. Once in, find the room with the valuable
goods. This might take some trial and
error.
5. Once found, steal or damage the
goods the burglar was looking for.
To prevent a scenario like this,
organisations have all kinds of measures
in place. Guards might notice if someone
is observing the property. Badges and
mantraps ensure no one without a badge
can enter. Strict procedures for managing
keys make it harder to steal them. A
closed-circuit security camera system
makes it difficult to wander around in the
building unnoticed.
Preventing a successful cyber attack,
including a ransomware attack, requires
the cyber equivalent of these measures.
One might keep an eye on the internet
(including the hidden darknet) and notice
the company is discussed as a potential
target. Enforcing strong authentication
for network access makes it harder to
find a way in and makes it harder to steal
a password. Segmenting the network
makes it more difficult to get access to
the most valuable systems. Monitoring
the network and investigating any
unusual behaviour makes it harder for an
attacker to remain unnoticed.
WHERE TO START
The attacker has an advantage, needing
only one loophole, while the defender
must have everything in order. History
has shown that this is next to impossible.
While preventing an attack is very hard,
detecting an ongoing attack is often very
well possible. It takes time, sometimes
months, for an attacker to reach his goal.
Every security measure will impose a
delay. Once enough barriers (network
segmenting, strong authentication, etc.)
and monitoring are in place it becomes
next to impossible for an attacker to
remain unnoticed. The advantage
will shift away from the attacker and
performing a successful attack becomes
much harder. The value of monitoring
is one of the reasons Hudson Cybertec
developed OT Insight, a network
monitoring and compliance solution.
The IEC 62443 is a series of standards
for protection industrial automation
and control systems (IACS). This IEC
62443-2-1 describes how to establish
an industrial automation and control
system security programme. This
standard describes three basic steps for
the security programme: risk analysis,
addressing risk, and monitoring and
improving the programme. The various
other parts focus on the development of
secure components, how to perform risk
analysis and building and managing IACS
in a secure manner.
Applying this standard ensures a
structured way in improving the cyber
security of any IACS system. It will result
in enough barriers to stop or slow down
an attacker and monitoring to detect
malicious activities.
For more information:
01
This article was written by Chris van den
Hooven, senior cyber security consultant
at Hudson Cybertec.
www.hudsoncybertec.com/tsm
01 Filling station in Georgia out of fuel with
yellow bags on pumps during the Colonial
Pipeline outage
PAGE 65
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TECHNICAL SECURITY
PHYSICAL SECURITY
IN THE BLIND SPOT
Security professional Duane Jones on the importance of ensuring that physical
and cyber security complement each other
THE PROLIFERATION of cyber
threats against critical infrastructure,
such as the ransomware attack against
Colonial Pipeline in May 2021, will
continue to require added attention,
resources, and proactive strategies in lieu
of reactive ones. While the cyber threats
are quite real against virtually all type
of industry, critical infrastructure is an
obvious high-value target for numerous
threat vectors. However, with the majority
of attention now focussed on cyber
elements, companies must ensure they
do not position their physical security
programme in the blind spot of their
integrated security posture.
THE PHYSICAL/CYBER NEXUS
The days of purely manual efforts in the
tank farms, pipelines, etc. have long
since passed with a great reliance on
automation. The reality remains that both
cyber and physical elements will continue
to experience threats given the potential
vulnerabilities which exist in both arenas.
Fortunately, most businesses recognise
and implement the need to separate
critical operational elements, such as
Supervisory Control and Data Acquisition
(SCADA) are completely separated
from other business systems, such as
email and internet access points. Doing
so serves to reduce the exploitation of
vulnerabilities by nefarious actors, such
as nation states, criminal organisations,
and of course, the human element.
Risk reduction in operations is always
an objective, and with cyber and
physical security it is vital management
understands they are always joined
in some manner. The physical/cyber
interaction may be limited in an effort to
minimise cyber risks, but the physical
vulnerabilities must be addressed
continually in order to identify those
‘blind spots’ which can negatively impact
both physical and cyber security, as well
as raise compliance concerns within
regulatory programmes such as the
Maritime Transportation Security Act
(MTSA), Chemical Facility Anti-Terrorism
Security, and Transportation Security
Administration (TSA)/Department of
Transportation (DOT) requirements.
Both physical and cyber security must
complement each other since both share
potential adversaries, vulnerabilities,
and threats, along with the risk reduction
elements from an effective integrated
security management system.
THREAT VECTORS
Twenty years after the 9/11 physical
attacks on the US, the types of threats
and tactics have evolved, both in
sophistication and especially in the
actors which operate in an ongoing
electronic war. The ability to attack an
asset remotely and with almost
complete anonymity provides an
enormous advantage to the entity
initiating the attack.
Twenty years ago, the adversary was
obvious with a clear objective. The
traditional criminal elements still
operated in 2001, but 2021 has shown the
electronic attack mode is the preferred
and safest method for an adversary to
inflict harm on US assets and companies.
Organised criminal elements operating
abroad primarily focus on financial gains
as their modus opera director. Nation
states will always utilise all methods
available as well to obtain information
to meet intelligence objectives, and
therefore will remain a constant concern.
Additionally, adversaries with ideological
motivations will also present threats as
terrorist organisations evolve, change,
and grow. Lastly, we cannot overlook the
internal threat that may exist and can
manifest itself in a number of ways, such
as workplace violence and insider threats.
While multiple threat vectors are always
present, resources and attention for
2021 and beyond will primarily focus on
addressing the cyber threats. While doing
so is necessary, appropriate emphasis
must continue toward addressing and
maintaining an appropriate level of
physical security as well.
PAGE 67
TECHNICAL SECURITY
MORE THAN A CHECK MARK
The physical security programmes at
most facilities are relatively mature at
this point, with routine training, audits,
drills/exercises, etc., especially locations
subject to security regulations along with
company requirements. A concern with
a mature programme is that it becomes
more of a routine and just a check mark if
management becomes tone deaf to the
potential threats.
A facility that has never had a reportable
security incident usually believes there
is not a viable threat or that the security
programme is adequate to deter or detect
an adversary. Unfortunately, the lack of
an identified incident does not mean the
facility has not been targeted in some
way. A location that has not experienced
a security issue may simply be one day
closer to such an event.
All security programmes generally strive
for a layered ‘defence in depth’ approach.
As such, when one layer is inadequate
in some way, the entire programme is
less effective and therefore subject to
exploitation. With the increased focus on
cyber threats, the potential for physical
security to become that exploitable layer
increases when resources and focus for
physical measures wane.
EXPLOITABLE PHYSICAL SECURITY
When a physical security programme
becomes ineffective or stale, an
adversary then has the chance to identify
a weak point or a target of opportunity.
Regardless of the adversary, the path
of the least resistance is the one most
often chosen. While well maintained
security equipment can be very effective,
ultimately it is the human element that all
too often intentionally or unintentionally
allows a vulnerability to exist.
Unfortunately, the lack
of an identified incident
does not mean the facility
has not been targeted in
some way
Accepting that most physical security
programmes focus on access control
measures as the cornerstone of the
programme, failure to maintain positive
access control negates many other
elements of the integrated security
management system.
Consider a facility that shifts the resources
to countering the cyber threat to the point
where physical security takes a backseat.
If the access control element is not as
effective as needed, an adversary could
potentially gain access to critical facility
components. As all cyber awareness
messages focus on ensuring only
authorised persons gain access to the
system, poor physical access control
that allows an unknown entity inside the
perimeter immediately increases the
risks of a negative event. One unidentified
person at the facility with a jump drive can
cause significant damage to the facility
and its operations. Potential scenarios are
unlimited when ineffective physical security
measures are allowed or occur at a facility.
MAKE THE COMMITMENT
Every facility must decide how to allocate
available resources which may leave
the security programme fighting for
personnel, equipment, training resources,
etc. As security is often viewed as a
resource drain with little or no return on
investment, unfortunately management
may believe the security programme
is the best place to limit resources.
Completion of a security assessment
to identify facility-specific threats,
vulnerabilities, and consequences
should occur on a regular basis to assist
management in understanding where
physical security resources are a must.
Quantifying deterrence will always be a
challenge for the security programme.
For more information:
Duane Jones, owner of
SecurityAwarenessToday, has over
30 years’ experience in security
management and counterintelligence
operations. Jones background includes
service as a special agent (US Army) and
director of security for a Fortune 500
company. Jones holds an MS
in Security Management from
Bellevue University.
PAGE 68
8 - 10 March 2022
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TECHNICAL TANK ALARMS
TANK ALARM MONITORING
TO KEEP KENYA FUELLED
Ian Loudon from tank monitoring alarm specialist Omniflex looks at how alarm
systems are used for managing tank overfill conditions
IF NOT monitored correctly, loss of
containment from a tank or storage
vessel could pose a serious safety risk
to people or the environment. This is
why Burhani Engineers, the company
installing overfill protection systems in the
largest tank storage facility in Mombasa,
Kenya, needed reliable, high level alarm
instrumentation to help protect critical
assets. Having the right alarm system
ensures safety in a tank facility.
The UK’s Major Incident Investigation
Board report into the Buncefield fire in
2005 concluded that insufficient or faulty
critical safety equipment are often the
key root cause of tank overfill incidents.
This report led to the creation of the
international API 2350 standard for tank
facilities, requiring audible alarming
systems and data collection processes
to be implemented for the continuous
monitoring of overfill parameters.
To provide protection against overfill
incidents, an independent high-level
alarm system over and above the normal
gauging system is required.
PROBLEMS WITH CURRENT
AUTOMATED SYSTEMS
For aboveground storage tanks, a
key challenge for engineers is being
able to respond to instrument failures
adequately. Previously, operator
response time has been cited as the
cause for several high profile overfill
incidents, including the Buncefield fire.
Having the correct mission-critical
alarm annunciators is the simplest and
most effective solution to ensure quick
responses to potentially dangerous
overfill events.
Even in a facility with a single tank,
monitoring tank conditions using level
gauges, control valves and stop/start
PAGE 70
pumps may not be sufficient to do without
overfill alarms. However, in a large facility
with multiple tanks carrying out regular
inspections can be extremely time
consuming and the chance of human
error is exacerbated. What’s more, if
a level gauge is faulty and a manual
inspection doesn’t pick this up, there is
the risk of a potentially dangerous overfill
event. Even in the best-case scenario,
a clean-up operation even for a small
spillage could be unproductive and costly.
If tank terminals do not have audible
alarms, measurement errors could go
undetected and the chance of human
error increases. For this reason, Burhani
Engineers engaged Omniflex, which
provided a simple solution for Kenya’s
main gas oil and diesel storage facility.
THE BOTTOM LINE
Traditionally, the level limit alarm for a
tank storage facility would be hardwired
back to the control room to control
pumping and tank discharge. This is
all well and good until there is a system
failure or human error preventing the
transmission of alarm signals. By placing
an independent limit alarm with a high
or ‘Hi’ and a high-high or ‘HiHi’ alarm
integrated into a SIL-certified annunciator
panel in the field, alarms will sound locally
and around a facility until issues have
been resolved. Operators near the tanks,
as well as those in the control room, are
forced by the annunciator to acknowledge
and rectify the problem straightaway.
With this, site managers are notified
of a potential overfill threat before
a compromising event occurs and,
importantly, near miss events are
detected and logged. For this to be
effective, independent limit alarm and
level measurement transmitters are
placed on each terminal storage tank
and hardwired to an annunciator. Each
transmitter can provide two contact
outputs: a high-level alert to act as a
warning before levels reach the urgent
and potentially dangerous high-high level.
Audible and visual alarm statuses are
given by the annunciator to attract the
attention of operators.
In a facility with upwards of 80 tanks,
like Mombasa, the potential difficulty for
site managers is determining which tank
alarm annunciator is sounding. There is a
simple answer to this, because, in many
cases, all field alarm statuses are also
displayed in the control room, along with
GSM-based SMS alerts generated to
notify relevant personnel 24/7. The GSM
alert expects an acknowledgement from
the recipient otherwise it escalates the
alert to someone else. There are three
levels of escalation to ensure efficient
action is taken to prevent overfills, even
in an unmanned area of the facility.
Most importantly near miss events do
not go undetected.
The storage facility in Mombasa is
an integral piece of infrastructure
because it pumps fuel inland through
all of Kenya and other areas of Eastern
Africa. Burhani’s expertise and suite of
measurement instrumentation coupled
with Omniflex alarm systems makes
the task of managing tank conditions
efficient, simple and safe.
For further information:
Ian Loudon is the international sales and
marketing manager at Omniflex.
Contact Gary Bradshaw,
Omniflex (UK) on [email protected]
or +44 (0)161 491 4144
www.omniflex.com
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TECHNICAL LIGHTNING
LIGHTNING RISK MITIGATION
– MORE NEEDS TO BE DONE
Dr Akihiro Wakabayashi, CTO of Critical Facility Group, looks at why tank fires
and explosions are still happening and what can be done to reduce the risk
still lacking in many tank storage facilities.
This poses major concerns for the
potential damaging consequences of tank
fires and explosions. The investment,
however, in improved risk mitigation
measures can actually be relatively small
when measured against the overall cost of
tank construction and even smaller when
measured against the potential damages
and losses.
01
THE FIRE TRIANGLE
tank roof and the wall to avoid bound
charge accumulation. This can result in
secondary arcing – ‘ignition’ in case of a
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Initial research by the API shows that
these shunts may fail to provide the
required contact between the tank roof
and wall and are prone to wear and tear
issues. Without a properly earthed roof,
the risk of arcing still exists. Updated
recommended practices outlined in
API 545 (now part of NFPA 780) around
tank protection include:
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1. Install
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lightning
strikes
the
earth
around
3
million
times
a
day.
lightning
strikes
the
earth
around
3
million
times
a
day.
retrofitting
existing
tanks.
lightning
the earth
around 3 million times a day.
explosion incidents is lightning - one of
RISK strikes
MITIGATION
PRACTICES
Currently, two types of bypass
earth’s most frequently occurring natural
major
studyWelded
conducted
tank
firesbybythe
the
Swedish
National
Testing
andResearch
Research
InIna amajor
study
conducted
onontank
Swedish
National
Testing
and
API
650:
steel tanks
for
oilfires
the
Swedish
National
Testing
conductors
are used
– retractable
and and Research
disasters. The meteorological office in the In a major study conducted on tank fires by
storage
require
bonding
(grounding)
Institute
as
early
as
2004,
it
was
discovered
that
almost
a
third
of
the
480
tank
fire
incidents
Institute
as
early
as
2004,
it
was
discovered
that
almost
a
third
of
the
480
tank
fire
incidents
non-retractable.
UK estimates that lightning strikes the
Institute
astoearly
as 2004,
it was
shunts
be provided
between
thediscovered that almost a third of the 480 tank fire incident
earth around 3 million times a day. reported
reportedininthe
themedia
mediawere
werecaused
causedbybylightning.
lightning.
In a major study conducted on tank fires
by the Swedish National Testing and
Research Institute as early as 2004, it
was discovered that almost a third of the
480 tank fire incidents reported in the
media were caused by lightning.
reported in the media were caused by lightning.
02
Another study, sponsored by 16
companies in the oil industry, also found
that 52 out of 55 rim seal fires were
caused by lightning. Many of these major
fires took many hours and resources to
extinguish, resulting in great economic
losses and downtime to the facility. In
some cases, employees and residents
in nearby neighbourhoods had to be
evacuated for safety reasons. The direct
and indirect ramifications are usually of
gigantic proportions.
Despite the numerous lightning related
tank incidents reported worldwide, the
improvement in mitigation measures is
Another
study,
sponsored
companies
the
oilindustry,
industry,
alsofound
found
that52
52out
out
of5555
Another
study,
sponsored
byby1616
companies
ininthe
also
that
PAGE
73
Another
study,
sponsored
by
16 companies
inoilthe
oil industry,
also
found
that
52ofout
of 55
rim
seal
fires
were
caused
by
lightning.
Many
of
these
major
fires
took
many
hours
andand
rim seal
caused
by lightning.
ManyMany
of these
majormajor
fires took
manymany
hourshours
and
rim fires
seal were
fires were
caused
by lightning.
of these
fires took
resources
extinguish,
resulting
great
economic
losses
anddowntime
downtime
the
facility.
resources
totoextinguish,
resulting
iningreat
economic
losses
and
totothe
InIn In
resources
to extinguish,
resulting
in great
economic
losses
and
downtime
tofacility.
the
facility.
countries. The new design addressed all the aforesaid disadvantages of retractable bypass
conductors and also mitigates the newly discovered risk of braided tape type bypass
conductors. When this article went to print it is also the only retractable bypass conductor in
this product category that has attained both ATEX and IECEx certification.
TECHNICAL LIGHTNING
The introduction of the DBC has allowed for a relatively easy and inexpensive way to bond
floating roofs and tank shells on both old and new tanks while ensuring the shortest possible
route with very low resistance.
03
API545 recommends that EACH (NOT THE SUM) of the bypass conductors have a maximum
end to end resistance of 0.03 ohms. As such, the typical braided tape is made of copper
strands woven together to form the tape. However, these copper strands are prone to
corrosion especially in an environment where highly corrosive chemical like hydrogen
The non-retractable
types are simple to
since its first introduction. To meet
sulphide
is present.
install but have some key disadvantages:
the needs for improved performance
Additionally, over time, the braided tape degrades (the
strands break
or are
corroded)
and durability,
Critical
Facility
Groupand
• The conductor is at maximum length
with the reduced number of effective strands, resistance
goes upa as
does
resultingversion
heat from
introduced
new
enhanced
of
at all times irrespective of tank roof
the retractable bypass conductor in
current
discharge.
The degraded
braided
position,
therefore
resulting in
highertape then becomes a potential source of ignition
2020. Interestingly, in the course of its
because
of that increased
temperature.
resistance
from the length
of uncoiled
cables.
development, the scientist and experts
To counter the issue of premature tape corrosion, Critical
Facilities
Groupa new
Pte Ltd
(a spin-off
involved
discovered
potential
fire
• Due from
to theHitachi,
charging
andhas
discharging
that may
caused by
traditional
company
Ltd.)
introduced a highlyhazard
conductive
heatberesistant
alloy
with a
tank causing the roof’s vertical
retractable
braided
tape-based
bypass
Nickelofcoated
solid tape version of the bypass conductor.
This not
only meets
the NFPA/API’s
movements, the randomly coiled
conductors.
low resistance requirement, it also provides much more
corrosion resistance than its copper
cables may cause entanglement
The new product that is manufactured in
or aluminium
counterpart.
betweenbraided
the cable
and other To date, only Critical Facilities Group has a patented solid
Japan, the Dynamic Bypass Conductor
tape version
amongormanufacturers
components
structures on of
thebypass
roof, conductors.
potentially obstructing movement of
(DBC), was designed by a group of
The DBC is also uniquely designed to improve durability
againstand
the experts
effects of
severe
weather
scientists
from
Japan,
the roof.
the UAE and Association of Southeast
conditions such as typhoons and sandstorms.
Retractable bypass conductors are
designed to overcome the above
disadvantages of fixed length bypass
conductors. The deployment of such
retractable bypass conductors is now the
preferred method, although the rate of
implementation is still less than desirable
considering the risks involved.
Retractable bypass conductors have now
been in use for more than two decades.
While they have served their purpose,
there are still some outstanding issues.
LATEST DEVELOPMENT
IN RETRACTABLE BYPASS
CONDUCTORS
With more retractable bypass conductors
installed worldwide, the industry has seen
an improvement in lightning protection,
with hardly any reported cases of rim
fires of explosions occurring where these
devices have been correctly installed.
However, the devices do face problems
with mechanical failures, usually in
the form of the retracting mechanism
failure or torn conductors. The cause
of these failures is usually attributed
to the combined effect of corrosion,
exposure to foreign particles due to harsh
environment (typhoons, sandstorm,
etc.) and mechanical stress to the spring
components and the bypass conductor.
There has not been much improvement
to retractable bypass conductor design
PAGE 74
Asian Nations (ASEAN) countries. The
new design addressed all the aforesaid
disadvantages of retractable bypass
conductors and also mitigates the newly
discovered risk of braided tape type
bypass conductors. When this article
went to print it is also the only retractable
bypass conductor in this product
category that has attained both ATEX and
IECEx certification.
The introduction of the DBC has allowed
for a relatively easy and inexpensive way
to bond floating roofs and tank shells on
both old and new tanks while ensuring
the shortest possible route with very
low resistance.
API 545 recommends that EACH (not the
sum) of the bypass conductors have a
maximum end to end resistance of
0.03 ohms. As such, the typical braided
tape is made of copper strands woven
together to form the tape. However, these
copper strands are prone to corrosion
especially in an environment where highly
corrosive chemical like hydrogen sulphide
is present.
Additionally, over time, the braided
tape degrades (the strands break or
are corroded) and with the reduced
number of effective strands, resistance
goes up as does resulting heat from
current discharge. The degraded braided
tape then becomes a potential source
of ignition because of that increased
temperature.
To counter the issue of premature
tape corrosion, Critical Facility Group
(a spin-off company from Hitachi) has
introduced a highly conductive heat
resistant alloy with a nickel-coated solid
tape version of the bypass conductor.
This not only meets the NFPA/API’s low
resistance requirement, it also provides
much more corrosion resistance
than its copper or aluminium braided
counterpart. To date, only Critical
Facility Group has a patented solid tape
version among manufacturers of bypass
conductors.
The DBC is also uniquely designed to
improve durability against the effects
of severe weather conditions such as
typhoons and sandstorms.
SUMMARY
1. Due to the severe impact of fire or
explosion incidents involving EFRTs,
operators of such facilities should
consider improving risk mitigation
measures.
2. The investment of additional or
enhanced lightning protection
measures for EFRTs is relatively
low and justifiable considering the
alternative direct and indirect costs
when such accidents occur.
3. Retractable bypass conductors
are highly recommended based on
their cost-effectiveness and ease of
implementation.
4. The new version of retractable bypass
conductor is recommended to
address some of the earlier problems
experienced in traditional devices.
5. Selection of such devices has to
consider the facility’s exposure
to weather conditions (typhoons,
sandstorms, etc.) as it will affect the
durability and continual operability of
such devices.
6. Finally, the risk of rim fires and
explosions for external floating roof
tanks can indeed be mitigated further
through improved safety measures
such as the deployment of enhanced
retractable bypass conductors.
For more information:
This article was written by Dr Akihiro
Wakabayashi, CTO of Critical Facility
Group: www.critical-facility.com
01 Dr Akihiro Wakabayashi
02 Lightning statistics
03 DBC unit installed on an external floating
roof tank
14th ANNUAL
NATIONAL ABOVEGROUND STORAGE TANK
CONFERENCE & TRADE SHOW
December 1-2, 2021
The Woodlands Waterway Marriott
The Woodlands, Texas
•
•
•
•
Conference Sessions
Free Trade Show
AST Conference
Welcome Reception
• Golf Tournament
• Cocktail Mixer on the
Trade Show Floor
FREE
TRADE
SHOW
NISTM
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www.NISTM.org | 800.827.3515
International 011.813.591.4499
AT THE BACK ADVERTISERS INDEX & SOCIAL STORAGE
ADVERTISERS INDEX
Adler And Allen................................................................. 18
FineTek..................................................................................3
Scully Signal...................................................................... 14
ADIPEC...............................................................................66
Go4 Bunker....................................................................... 25
SGB...................................................................................... 8
Advance Technic................................... Front cover & 12
ILTA.....................................................................................39
SME Industrial Co Ltd......................................................28
Ametek.................................................................................7
Koerting .............................................................................13
StocExpo .......................................................................... 67
Antwerp XL....................................................................... 72
Mesa Industries Inc..........................................................16
SUMA.................................................................................20
AUMA..................................................................................15
NISTM ............................................................................... 75
Varec....................................................Inside front cover
Cashco............................................................................... 19
Nordic Storage ................................................................. 17
Verwater............................................................................24
Critical Facility Group.......................................................31
Onguard............................................................................. 10
Woodfield Systems................................................ 22 & 23
EEMUA.........................................................................9 & 11
Protego...............................................................................21
World Bridge.................................................... Back cover
FETSA................................................................................36
Reliable Automatic Sprinkler ............................................5
World LNG..........................................................................71
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Tank Storage Magazine, (ISSN 1750-841X) is published seven times a year (in February, March, May, August, September, October and November) by Easyfairs UK Ltd, 2nd Floor, Regal House, 70
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PAGE 76
EVENTS 2021/2022 CALENDAR
EVENTS 2021/2022
7th – 9th December 2021
27th – 28th October 2021
Media Partner
ASIA DOWNSTREAM SUMMIT
Hybrid event
www.asiandownstreaminsights.com/
events/asian-downstream-summit/
Media Partner
ANTWERP XL
Antwerp, Belgium
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25th – 26th January 2022
27th – 28th October 2021
Media Partner
EUROPEAN BULK
LIQUID STORAGE SUMMIT
Cartagena, Spain
www.wplgroup.com/aci/event/
european-bulk-liquid-storage/
Official Publication
EUROPEAN OIL & ENERGY
STORAGE CONFERENCE
Amsterdam & Online
https://plattsinfo.spglobal.com/
European-oil-energy-storageconference.html
8th – 10th March 2022
3rd – 4th November 2021
Media Partner
EUROPEAN E-FUELS CONFERENCE
Munich, Germany
www.wplgroup.com/aci/events/
8th – 11th November 2021
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Abu Dhabi National Exhibition Centre,
Abu Dhabi, UAE
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1st – 2nd December 2021
Media Partner
NISTM
The Woodlands, Texas
www.nistm.org
Official Publication
STOCEXPO
Rotterdam, The Netherlands
StocExpo is the largest and longest
running event for the global tank storage
industry. As the number one meeting place
for anyone involved in tank storage for
over 15 years, StocExpo is the ideal event
to help you stay ahead of the competition,
network and gain new business.
www.stocexpo.com
8th March 2022
Official Publication
GLOBAL TANK STORAGE AWARDS
Rotterdam, The Netherlands
The Global Tank Storage Awards are
designed to highlight those that excel in
a range of different categories relating
to terminal achievements, equipment
innovations, ports and individual
accomplishments.
www.tankstoragemag.com/awards
15th – 16th March 2022
Media Partner
BIOFUELS INTERNATIONAL EXPO
AND CONFERENCE
Brussels, Belgium
www.biofuels-news.com/conference
28th – 29th March 2022
Media Partner
8TH INTERNATIONAL LNG CONGRESS
Dusseldorf, Germany
www.lngcongress.com
April 2022
Official Publication
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27th – 28th April 2022
Media Partner
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Liverpool, UK
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10th – 12th May 2022
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