Tank Storage Magazine v02 i02

40.00

Volume: 2
Issue: 2
Date Published: May 1, 2006

Category:

Headlines

TERMINAL NEWS:

Transmontaine considers merger proposals • Biopetrol plant for Vopak Terminal • Further investments by Magellan • Tesco plans biodiesel plant • Stolthaven to buy 50% of Oiltanking Antwerp • Deep water first in Indonesia • Fraud inquiry at Europoint • New chemical storage facility for Jurong island • TransMontaigne signs agreement with Valero • UAE terminal growth • China starts to fill strategic reserves • Fortune Oil ups stake in South China • Interpipeline deal off • Pakistan to offer China oil transit facilities • Sunoco to buy 50% of New York terminal • SNTJ builds in China • Lucoil completes terminal • Motiva signs transmix contract • Merger given the all clear • Oiltanking Amsterdam in deal with Gunvor • Fluvia takes over Rotterdam facility • Pre-blended biodiesel on the rise • Tidelands looking into LNG terminal off California* Texan pipelines return to service • New terminal for Vopak in Singapore • Valero sells up down under


SUPPLIER NEWS

Fast shop-built tanks solve storage shortfalls • Land & Marine buys McTay • Magnetostrictive technology made easy • Leakwise reduces tank storage leaks • CB&I to build Chevron gas plant in Angola • Invensys launches first 'enterprise control system' • Carbis launches loading arms range • Siemens to acquire Controlotron Corporation • New hydrogen facility from Praxair • Krohne to supple flow meters to Oman


REGULATIONS & SAFETY

EPA eases transition to ultra-low sulfur diesel • Scotland's oil storage rules come into force • UK Health & Safety rules amended • New noise rules • UK refinery fined for safety breach • Kinder Morgan to make safety upgrades • Scottish islands want BP depot relocated • Fire safety seminars • Safety incidents.


PROFILE

Kinder Morgan Terminals had liquids throughput of 552 million barrels last year. Together with Kinder Morgan's Products Pipelines it is the largest independent liquid terminal operator by capacity in North America. But despite its size and those US$800 million revenues, the company has a headcount of just eight in its corporate offices in Houston. “It's a very lean operation and we try to push decisions down to the field,” explains John W. Schlosser, Kinder Morgan Terminals' vice president of sales and business development. That discipline permeates the entire Kinder Morgan group, one of the largest energy transportation, storage and distribution companies in North America. All executives fly coach class and there are no corporate jollies at major sporting events. The company's cofounder, the former number two at Enron, Richard D. Kinder, earns an annual salary of just US$1 and receives no bonus stock options or shares of restricted stock (his financial compensation is derived from an 18% ownership stake in Kinder Morgan, Inc). It's an approach that has kept the group fighting fit: its enterprise value today exceeds US$35 billion. Richard Kinder, who left Enron in 1996 before its spectacular implosion, founded Kinder Morgan in 1997 with university friend Bill Morgan when they acquired a former Enron pipeline business for US$40 million. Unlike asset-light Enron, the strategy pursued at Kinder Morgan has been one of collecting hard assets and steering clear of commodity risk. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


HURRICANE PLANNING

Seven months on from those two devastating strikes, the product storage industry is still licking its wounds. At least one firm, Westway, is planning to implement a completely new emergency recovery plan conceived after Katrina and then Rita knocked out its headquarters in New Orleans. Others have learned to improve emergency planning and inter-company communication. Two Gulf Coast refineries are still out of action because of the storms, according to the American Petroleum Institute's February 2006 statistical bulletin. Another in Louisiana, knocked out by Katrina, commenced its restart process in February but was still offline by the time the API survey was undertaken, accounting for 5% of US domestic refinery throughput. Overall, February refinery utilisation was 87.1% - it's lowest since 2002. Meanwhile, the US Gulf offshore oil and gas industry still had 23% of crude oil production and 14% of gas production out of action five months after Katrina and Rita hit the US Gulf Coast, according to the API. But hurricane damage was not directly responsible for facilities going offline. Rather, power failures prevented terminals and refineries from operating. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


BUNCEFIELD UPDATE

Although the actual cause of the December 11 incident in Hertfordshire, UK, is still to be determined, the failures of the bunds to cope with fire and hydraulic pressures were such that in the report's accompanying statement, the MIIB has urged storage site operators to “consider the adequacy of existing bunds on their sites”. The 26-page second progress report reiterates the initial findings: that the explosion and fire were due to an escape of fuel. How the fuel escaped and why it vaporised so quickly are questions which have yet to be answered, although at time of writing, the MIIB was hoping to publish its findings by mid May. The UK Health and Safety Laboratory is working to discover the nature and composition of the flammable mixture in the hope that this will explain why an explosion should occur in an unconfined vapour cloud. Secondary containment There were a number of different types of bund at Buncefield, ranging from earth banks with earth bases to concrete walls with concrete bases. The majority of the bunds affected by the fire were concrete, although some were concrete with clay bases. Unlike the pumping station, the bunds survived the explosion largely intact. But their ability to contain fuel and fire waters was lost due to the explosion itself and the subsequent fires. A particular area of concern is apparent loss or damage to joint sealant across the site. In some cases the explosion caused the concrete walls to heave, allowing fuel and fire water to escape onto the site. Five months after the incident there were safety concerns, including residue fuel in pipes, which meant the investigating team had still not been able to examine all of the bunds affected by the explosion. Buncefield investigation manager Taf Powell said: “Bund performance during the incident forms an important but as yet inconclusive aspect of the investigation.” The MIIB has not ruled out future work on reviewing the resilience of bunds, including their design and construction. Martyn Lyons, chairman of the Tank Storage Association, said the second update raised almost as many questions as it answered, not least about the type of sealant used and what happened to it, plus why gaps around the pipes pictured in the report are so big. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


STOCEXPO PREVIEW

In total over 2,300 people were present at StocExpo 2006, with visitor levels up by a massive 111% on last year. Over 50 countries were represented, with attendees travelling from as far afield as Brazil to see the latest that the tank storage industry has to offer. Exhibition floorspace was 65% larger than in 2005, covering more than 1,700m2. A huge variety of services and equipment went on show from 139 different companies - 44 more than last year. Exhibitors pulling in the crowds included Kanon, which had a highly visual display of loading arms on its stand, and Mess- und Fördertechnik, which had a 'hands-on' display of terminal automation technology. The FMC Technologies Measurement stand was rarely without a clutch of visitors. Some of the other larger stands that attracted attention were those of aluminium roof and dome specialists CTS; Saab Rosemont Tank Gauging Division; Silea, the loading arm and equipment supplier; Verwater Group, the tank construction and total maintenance specialists; roof and seal company Tank Systems BV; tank gauging and measurement company Endress + Hauser; Global Storage Agency TankBank; the tank construction and repair company Motherwell Bridge Ltd; and Imbeba Cleton - a diversified equipment supplier. Big names Many other big names in the tank storage supply sector were present, including terminal automaton and gauging expert Varec, vapour control specialist John Zink, long-established US meter firm Brodie Meter Co, tank construction, maintenance and roof & dome company HMT, terminal automation companies Egemin and Toptech, loading arm specialist Emco Wheaton, tank management system and instrumentation expert Enraf, and aluminium dome supplier Vacono. Also represented were loading arm and equipment supplier Liquip, the OPW Fluid Transfer Group, tank cleaning companies Oreco A/S and Willacy Oil Services, tank construction companies World Bridge and Tradico, and leak detection specialists Silverwing. One theme which was especially topical at the show was fire prevention and control. Exhibitors in this sector included Tyco Safety Products, Saval Fire Protection and TFEX Ltd, which also gave an interesting presentation on its fire abatement technology in the Conference. Especially busy were the stands around the cafeteria area, where visitors stopped for a break before continuing to 'take stock' of StocExpo. Feedback Exhibitors, for the most part, were satisfied with the level and quality of visitors to the show - several saying that “exactly the right people” had attended. Quality steel producer Duplex said: “After the Expo we have had a lot of enquiries about [our new steel] LDX 2101 from terminal owners and also fabricators. The interest has been large.” To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


STOCEXPO REVIEW

In total over 2,300 people were present at StocExpo 2006, with visitor levels up by a massive 111% on last year. Over 50 countries were represented, with attendees travelling from as far afield as Brazil to see the latest that the tank storage industry has to offer. Exhibition floorspace was 65% larger than in 2005, covering more than 1,700m2. A huge variety of services and equipment went on show from 139 different companies - 44 more than last year. Exhibitors pulling in the crowds included Kanon, which had a highly visual display of loading arms on its stand, and Mess- und Fördertechnik, which had a 'hands-on' display of terminal automation technology. The FMC Technologies Measurement stand was rarely without a clutch of visitors. Some of the other larger stands that attracted attention were those of aluminium roof and dome specialists CTS; Saab Rosemont Tank Gauging Division; Silea, the loading arm and equipment supplier; Verwater Group, the tank construction and total maintenance specialists; roof and seal company Tank Systems BV; tank gauging and measurement company Endress + Hauser; Global Storage Agency TankBank; the tank construction and repair company Motherwell Bridge Ltd; and Imbeba Cleton - a diversified equipment supplier. Big names Many other big names in the tank storage supply sector were present, including terminal automaton and gauging expert Varec, vapour control specialist John Zink, long-established US meter firm Brodie Meter Co, tank construction, maintenance and roof & dome company HMT, terminal automation companies Egemin and Toptech, loading arm specialist Emco Wheaton, tank management system and instrumentation expert Enraf, and aluminium dome supplier Vacono. Also represented were loading arm and equipment supplier Liquip, the OPW Fluid Transfer Group, tank cleaning companies Oreco A/S and Willacy Oil Services, tank construction companies World Bridge and Tradico, and leak detection specialists Silverwing. One theme which was especially topical at the show was fire prevention and control. Exhibitors in this sector included Tyco Safety Products, Saval Fire Protection and TFEX Ltd, which also gave an interesting presentation on its fire abatement technology in the Conference. Especially busy were the stands around the cafeteria area, where visitors stopped for a break before continuing to 'take stock' of StocExpo. Feedback Exhibitors, for the most part, were satisfied with the level and quality of visitors to the show - several saying that “exactly the right people” had attended. Quality steel producer Duplex said: “After the Expo we have had a lot of enquiries about [our new steel] LDX 2101 from terminal owners and also fabricators. The interest has been large.” To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


MIDDLE EAST STOCWATCH

StocExpo Middle East, to take place in Dubai from 11-12 September 2006, has seen a big increase in stand bookings on the back of the success of its European counterpart. Currently only a limited number of spaces remain, and the following companies have already committed to this year's event: CarboVac, Tyco Safety Products, Enardo Inc, John Zink Company LLC, Silverwing Middle East Ltd, Endress + Hauser GmbH, Syscom 18 SRL, TFEX Ltd, Saab Rosemount Tank Gauging, Enraf, Protectoseal, TankBank, Protego, HMT, Baillie Tank Equipment, GT mbH and Eco-Tank Systems LLC, Radcoflex India Pvt, Borsig GmbH, MB Group, J. de Jonge flowsystems, Kaddas Oilfield Services, Varec, Inc, Outokumpu, Global Oil Recovery, ISC Seals, Ergil Group, Verwater, CTS, SGS, Mass Technology, International Paints, Brodie Meters Steering committee announced As with StocExpo Europe, the conference programme will be vetted by a steering committee. The committee will be made up of experts in the tank storage sector who are able to draw on their many years of experience in the terminal industry. Already confirmed are: Salman Al-Jar, Manager - Transformation Team, Distribution Operations, Saudi Aramco Saeed M. Al Rashedi, Logistics Division Manager, Adnoc Distribution Ian Cochrane, Project Development Director Middle East, Vopak Coenraad D. HÙbner, Senior Manager Sales and Marketing, Star Energy Oiltanking Additional names will be added in the coming weeks. Details of the conference programme are expected to be finalised in June. Visit the website at www.stocexpomiddleeast.com for up-to-date information on the committee members as well as a complete exhibitors list. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


TERMINAL AUTOMATION

A great way to identify areas where automation might add value to your business is to start looking for all paper data input forms, spreadsheets, databases, paper reports and export files that you use in your daily operations. Even small marketing terminals often have a surprising number of these types of documents and files. Larger terminals and refineries can have hundreds. Each document and file is a potential indicator of a manual process that might be impacting efficiency and costs of operations. Paper forms & Spreadsheets Although truck rack automation is ubiquitous for today's terminals, many other types of data, such as physical inventories, receipt data, shipment data and various types of adjustments, are sometimes still hand recorded on paper forms and later manually entered into the system. Paper forms often pose several problems: They can be lost; There is no data validation; Data needs to be manually entered; Data is not immediately available to others. Today's terminal automation systems support a variety of data input and collection methods, including handhelds, kiosks and industrial operator interface terminals. These solutions enable validation of the data immediately after the transaction has completed. Data is immediately available in the system and the system can send email notifications where applicable. If someone is typing data into a spreadsheet that also exists in the terminal automation software, it is probably because the system does not support the data fields. A good terminal automation system will provide transaction data fields that can be configured to meet unique needs. These might not have been turned on when the system was originally commissioned. Rather than having someone manually type in data or send an export file, the terminal automation system could be extended with an interface to automatically send the data at the appropriate time or based on an event. Databases & Reports It is very common for a terminal to have one or more external Microsoft Access databases that provide functions not available in the terminal automation system. Data is often imported into the external database by manually exporting a file from the terminal automation software. This process results in redundant data, which can lead to problems when data is changed in one database and not the other. One method to eliminate the redundant data is to connect the Microsoft Access database directly to the terminal automation system database, but this method can dramatically increase the complexity of the Microsoft Access database and still results in a system with two disparate user interfaces. This solution is also prone to problems when upgrading the terminal automation system and may be considered a security risk. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


ILTA PREVIEW

This year's International Liquid Terminals Association (ILTA) Operating Conference & Trade Show will take place in Houston, Texas, from 5-7 June 2006.


TSA PREVIEW

The UK's Tank Storage Association (TSA) holds its annual one-day Conference and Exhibition on Wednesday 17 May 2006 at the Hilton Hotel, Coventry.


SAFE LOADING

As well as boosting safety, user-friendly equipment also results in a significant reduction in downtime. “A lot of failures occur as a result of operators trying to use equipment in a way that it wasn't designed for,” says Boot. Although most technical installations are initially designed by engineers, operators are involved during the commissioning of loading arms projects. “The difference in view between the operators and designers will be very clear, but also very late at this stage,” says Boot. The answer, he says, is to turn around the development process so that operators' needs and views are taken into account as much as possible during the design stage. “Projects aiming to increase the overall efficiency of operations by automating should take this approach as a base, not only for the overall control software, but also for the mechanical equipment involved, such as safety access and loading arms,” says Boot. Because safety and operational convenience go together, loading equipment should be ergonomically designed, and preferably manageable by one person - preferably by the truck driver on truck tankers, he adds. Folding stairs combined with safety cages are a safe and convenient way for accessing trucks and rail tankers for top loading, taking product samples or other tasks. “In the case of top loading and unloading, it is absolutely essential that an optimal combination of loading arms and access facilities is designed to achieve a safe and convenient loading configuration for each specific situation,” says Boot. Kanon has over 20 years experience in the design and manufacture of marine, rail and road liquid transfer and safety systems. This includes a complete range of loading arms and CE-certified and ATEX compliant folding stairs for all widths up to 4 meters, optionally executed with a safety cage, always fully spring-balanced. Safety cages are available in large sizes, for access to all manholes of a truck tanker within one cage. Operation is manual as standard. For folding stairs equipped with a safety cage or with larger widths, pneumatic or hydropneumatic operation is optionally available. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


LOADING ARMS

The first recorded instance of a “loading arm” was in 1938 when Bob Wheaton and John Savage built an articulated pipe system for loading horse-drawn tanker barrels. The Emco Wheaton brand (which followed the merger of Empire Manufacturing Co and Wheaton Brass in 1967), is still pioneering advancement in technology and safety, says Alec Keeler of Loadtec Engineered Systems Ltd - the UK and Ireland representative for Emco Wheaton. Last year Loadtec completed an interesting project for Honeywell Iropharm in Ireland. The customer has a facility that loads solvents and wastes into road tankers of varying sizes and required a flexible, integrated solution to meet the safety and environmental issues involved. “Loadtec worked with the Honeywell engineers over a number of months to develop a scheme for tanker loading and fall prevention, which would meet those needs and future-proof the installation,” says Keeler. “The subject of future proofing is becoming increasingly important. A number of customers are facing overhaul of their systems due to environmental legislation covering emissions and safety legislation regarding exposure to liquids and falls.” The issues at Honeywell were to design a safe loading system providing a single outlet for up to nine liquids that would not crosscontaminate the fluids. Safe access was also a concern. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


LOADING ARMS

The first recorded instance of a “loading arm” was in 1938 when Bob Wheaton and John Savage built an articulated pipe system for loading horse-drawn tanker barrels. The Emco Wheaton brand (which followed the merger of Empire Manufacturing Co and Wheaton Brass in 1967), is still pioneering advancement in technology and safety, says Alec Keeler of Loadtec Engineered Systems Ltd - the UK and Ireland representative for Emco Wheaton. Last year Loadtec completed an interesting project for Honeywell Iropharm in Ireland. The customer has a facility that loads solvents and wastes into road tankers of varying sizes and required a flexible, integrated solution to meet the safety and environmental issues involved. “Loadtec worked with the Honeywell engineers over a number of months to develop a scheme for tanker loading and fall prevention, which would meet those needs and future-proof the installation,” says Keeler. “The subject of future proofing is becoming increasingly important. A number of customers are facing overhaul of their systems due to environmental legislation covering emissions and safety legislation regarding exposure to liquids and falls.” The issues at Honeywell were to design a safe loading system providing a single outlet for up to nine liquids that would not crosscontaminate the fluids. Safe access was also a concern. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


LEVEL GAUGING

Selecting which level gauging technology to employ will be wholly dependent on the application requirements and regulatory bodies. However, all the leading manufacturers of tank gauges and systems emphasise that it's imperative to determine at the outset what information is required, how it is to be presented and finally how it is interpreted. Both Enraf and Varec define tank gauging as the generic name for static quantity assessment of liquid products in bulk storage tanks. Tank gauging is essential for the assessment of tank contents, tank inventory control and tank farm management. Enraf states that level uncertainties of only 1mm in a 10m tall, 50,000m³ tank equates to 5 m³, clearly indicating that accurate measurement is the prime requisite for good inventory management. However, it is still only one of the many aspects involved in tank gauging. Reliability to prevent product loss, performance to optimise product movements and safety to protect the environment and personnel are issues that are of equal importance. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


TANK CLEANING

In 2005 a sludge survey was carried out at a UK refinery using the Willacy Patented Sludge Profiler for Oil Tanks (SPOT system), which is based on sonar. From two entry positions on the roof of the 73m diameter floating roof crude oil tank, the whole of the tank was surveyed, while full of oil, in less than one working day. Almost 3,887m³ of sludge was located and mapped in the tank; the height of the sludge banks was also accurately indicated. This allowing for careful planning of the non-entry sludge removal programme, says Willacy. The customer's technical directive specified that for the cleaning of crude oil tanks “The technology must:- require entry of cleaning personnel inside the tank only during the final phase for removal of sediments when the atmosphere no longer demands the use of respiratory protective devices and thus avoiding having a phase of work performed in an atmosphere with hydrocarbons that can be the source of potential hazards. For this purpose, automatic hydrodynamic jetting can be used. This breaks up the structure of the sludge and places the hydrocarbons in suspension through circulation ”. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details


VAPOUR RECOVERY

Built on a brownfield site adjacent to Londonderry port and harbour facilities, a new 76,000 tonne oil storage terminal is one of the largest to be developed in the UK and Ireland in several decades. The terminal, which is owned and operated by LSS Limited, will distribute products in Northern Ireland and Eire. It was designed and project managed by Project Design Engineers Limited (PDE) over a two-year period, with completion in December 2005. Four main products, unleaded petrol, derv, gas oil and kerosene are imported by ship through a private jetty in Lough Foyle, and distributed by road tanker. Bottom loading vehicles use one of four gantries, two having seven arms, and the other two having six. Each loading gantry has a vapour arm, which is connected to the vapour recovery unit (VRU). Operating conditions produce a petroleum saturated vapour containing up to 1,400 grams of hydrocarbons (HC) in each cu m of air, which is extracted during the loading process. The site's Industrial Pollution Control licence requires that the 'clean' air discharged to atmosphere must not exceed 35g HC/m³. The VRU installed at the LSS terminal achieves an operating level of 10g HC/m³, this figure having been approved by the Council of the European Union some time ago, and referred to as the 'Gothenburg Protocol'. It has not been ratified by member states and is, therefore, not mandatory for countries to adopt it. During the loading at the gantry, vapour contained within the road tanker is expelled through the vapour return line. This containment in itself reduces the potential for fire, explosion and vapour inhalation; but in addition, each of the four lines is monitored for pressure and temperature, and includes a detonation flame arrester to ensure that in the event of an explosion it would be speedily quenched. To minimise power consumption, the system includes an efficient vacuum process with the pipe layout being configured to ensure low-pressure loss. The VRU adopts a dry vacuum process, including the vacuum pump, with this later component saving up to 50% power compared with the earlier used liquid-seal ring pump designs. To read this article in full you will need to subscribe to Tank Storage Magazine or buy the back-issue. Click here for further details