Tank Storage Magazine v11 i05


Volume: 11
Issue: 5
Date Published: September 7, 2015



Pengerang Terminal is only the beginning..

An exclusive interview with the operators of southeast Asia’s first independent land-based crude oil storage facility.

Update on Singapore's neighbours

Lynda Davies examines storage developments across Malaysia and Indonesia. Malaysia’s Johor remains a popular region for the storage sector, albeit with some projects proving more successful than others.The second phase of expansion at VTTI’s ATT Tanjung Bin oil storage terminal in the port of Tanjung Pelepas in Johor, southern Malaysia has just been completed, adding another 262,000m3 of storage capacity at thesite. A new jetty with a draft of 17.5 metres and capable of serving Aframax tankers of a maximum of 120,000 dwt has also started operations.The new capacity became fully operational on August 1 and has increased annual throughput capacity at the facility by around 25%. In total, 12 new tanks have been constructed, all dedicated for fuel oil storage.Aernout Boot, general manager of ATT Tanjung Bin, says the new storage capacity is for third parties at present and has been leased on long term contracts.Following the $85 million (€76.5 million) expansion, the ATT Tanjung Bin facility offers a total of 1.15 million m3 of storage capacity split across 53 tanks and access to six marine berths, suitable for tankers ranging from the smallest bunker barges up to VLCCs.

Storage wars: The international oil trading hub race

Mahin Siddiqui, associate at Gulf Intelligence, examines how the second and third ranked oil trading hubs compare and how Fujairah is well on the way to overtaking Singapore to second place.  

Jewel of the Asian maritime highway

With construction work imminent, Tanjung Piai’s strategic location and naturally deep draft are attractive features for storage operators looking to grow in the region. As Asia cements its position as one of the key players in the global tank storage market, Tanjung Piai in Johor, Malaysia is capitalising on the surge in demand for storage.Connected to the Strait of Melaka, one of the busiest shipping routes in the world, the petroleum and petrochemical hub also has VTTI’s ATB terminal in the Port of Tanjong Pelepas, and the Pengerang Deepwater Terminal in eastern Johor as its neighbours.Coupled with its close proximity to Jurong Island in Singapore the island is poised to be an attractive asset for interested storage operators. Following approval to proceed with reclamation and construction works from the Department of Environment in January 2015, work will start in August to reclaim 1,000 acres of a total 3,485 acres of land.It is envisaged that the total reclamation of the island will take up to 15 years to complete. In an interview with Tank Storage Magazine Brian Mak, business development and investor relations manager for Benalec SDN BHD, a subsidiary of Belnalec Holdings, says that the reclaimed island will have a considerable focus on storage for the oil and gas industry.

Guidance update following regulatory changes

Latest technical publications on operations management, new environment guidelines and Seveso III Directive. The Energy Institute has produced updated guidance and new publications promoting safe practices in operations management, good working practice on managing environmental issues as well as the implications of Seveso III Directive.The chartered professional body for the energy industry has produced a structured analysis, comparing the differences between the full text of the previous Seveso II directive and the new directive along with the likely impact on distribution terminal operators.

There's no stopping them...

With its latest acquisition of four storage terminals in Sweden, Inter Terminals has increased its storage capacity by 40% and is now the largest independent terminal operator in Scandinavia.

Cutting a competitive edge in chemical storage

As European chemical production continues to decline, chemical storage operators on the continent are relishing the growing number of larger shipments coming from abroad to serve the market. The ARA region has also experienced significant growth over the past few years with a slew of new projects announced and built despite the restrictive regulatory landscape the sector operates within.Such is the demand for chemical storage that Noord Natie is further expanding its storage capacity within the terminal at the Port of Antwerp.In an interview with Tank Storage Magazine, Martine Teeuwens, managing director, explains that the need to remain competitive is more important than ever despite the challenges that the industry faces.

Benchmarking chemical storage in the Mediterranean

Utilisation rates within the Port of Tarragona’s chemical storage cluster have enjoyed a consistent upward trend over the past year as the local industry continues its production peak.Pre-empting demand for products from the Middle East and Gulf region where new facilities are being built, chemical exports from the Mediterranean port are increasing as local industry ramps up its output.As a result utilisation of the 400,000 m3 total chemical storage capacity at the port is well above 90% with around half of the demand coming from local industry. Europe and the Middle East are also key regions where the port is getting demand from.In an interview with Tank Storage Magazine Genoveva Climent Dewit, commercial director at the Port of Tarragona, says that the chemical sector is at its peak right now thanks to a healthy amount of demand.‘The chemical industry is particularly growing as the end markets, such as the car industry for example, are healthy at the moment.

Preventing falls from road tankers

There is a wealth of choice in fall prevention and fall protection equipment available on the market today and this, coupled with commercial purchasing pressures mean buyers are often forced to choose between savings and safety. This means it is essential for potential buyers and operators to understand the implications of the choices they make when it comes to protecting personnel whilst they work at height on the top of road tankers.

Chemical terminal inspections: 20 years of evolution

The beginningIn the early 1990s, chemical companies had no travel restrictions, bottomless budgets and fully manned departments, and the carbon foot print was not yet on the agenda.The need to apply due diligence in selecting service providers was recognised and the recently implanted embryo of Responsible Care was calling for ‘…..the chemical industry to demonstrate commitment to improve all aspects of performance which related to protection of health, safety and the environment’. Auditors, indeed teams of auditors, traversed the world, taking as long as two weeks to audit a terminal or returning for several visits, with all the associated costs and burdens created on the terminal manager and his staff.Simultaneously in this era, the independent storage terminal industry was starting to grow rapidly, with some chemical companies selling off their older terminals and focusing on core activities. Probably the first few of what would become common streamlining exercises of re-structuring, would have a severe impact on the established auditing departments.In those early days, as is still the case today, the global terminal industry lacked international legislation and regulation was imposed by national laws and administrations. This diversity created a very uneven playing field in terms of operating practices, safety and consideration for the environment. With so many different ways of doing things, there was no international standard for terminals to benchmark their performance. Even the rapidly expanding ‘global’ terminal operators were experiencing a lack of consistency in implementing their corporate management systems; their corporate policies were being manipulated by national influence and cultures, and ‘the way we do it’ attitudes.

The critical role of proof tests

A large top tier chemical facility located in the north east of England required an extensive review of its safety systemproof test procedures in order to improve its legislative needs. Fully defined proof test procedures help show compliance with safety management policy, improve planned maintenance strategies, fault reporting capability and avoid unnecessary equipment failures.Proof testing forms part of the routine actions that are required to maintain the integrity (as designed) of the functional Safety Instrumented Systems (SIS). Their purpose is to reveal dangerous faults that would otherwise remain unrevealed and adversely affect the integrity of the SIS. Proof tests are executed using written test procedures, the content and accuracy of which govern the effectiveness of the test.Working closely with the client UK-based performance improvement solutions provider GSE Systems sought to establish a full understanding of how their existing proof test procedures were used to demonstrate safety system compliance. GSE then made recommended improvements and design options, in order for the data to be aligned with HSE expectation.

Site surveys with a difference

UK-based Advanced 3D Laser Solutions has just completed a major project with oil refiner Valero focusing on the Pressure Systems Safety Regulations (PSSRs) required to maintain compliance with HSE legislation. Valero’s primary requirement was the preparation of piping isometrics to cover all process pipework lines within the respective terminals in advance of non-destructive testing (NDT), using its own inspectors.The company scanned five UK bulk terminals, totalling around 25 days of 3D laser scanning. Using traditional site survey methods to hand measure and sketch pipework sections would have taken piping designers over a year to gather only the pipework details.Before work begun Advanced 3D Laser Solutions submitted method statements and undertook risk assessments with the purpose of controlling onsite activities on what were obviously DSEAR governed sites. The company’s surveyors completed site inductions and agreed strategies for surveying areas where heavy vehicle movements were necessary in maintaining the normal operations associated with running busy terminals. Multiple scans from different terminal locations were completed. During each scan the 3D Laser scanner collects site data points along with digital images.The data points will contain the site coordinates which when they are brought together with other scans, form what is known as a 'point cloud’. The digital images that we use as our viewing portal to analyse the site have the data points hidden in background.This powerful tool can be used for collating site details.

Simultaneous yet safe: a new approach to loading

In 2011 Spanish petrochemical company Cepsa undertook a review of operations at its Huelva site in southern Spain.The review incorporated a study into demurrage costs and jetty occupation, which were both reaching unacceptable levels.If the situation had continued it would have been impossible to sustain future volume increases and jetty occupation would have been approaching 100%.Cepsa needed to establish whether there was an alternative method to load the chemicals which was an improvement in terms of safety and efficiencies to the loading arms that they were using.Historically there have been two main ways to load the products to the cargo tankers, either dock hoses (rubber or composite construction) or loading arms. Cepsa uses both methods at its terminals around the world.

Maintaining safety systems in tanker terminals

The use of antiquated safety systems in the tank terminal industry is still prevalent despite the introduction of stricter and tighter legislative frameworks.Safety systems that were developed and installed in the 1960s are still being applied in the current day despite the technical evolution the tank storage industry has undergone.Alec Keeler, director of Loadtec Engineered Systems explains that during the 1960s and 70s the design of tankers was markedly different and that such systems were lacking.‘Tankers were lower to the ground, quite small and safety systems were not prevalent – especially in downstream fuels market,' he says.‘Quite a few companies have introduced harnesses to protect their workers while they are on the tank top, which technically ticks a safety box.

Progress in lightning and static protection

What have the latest revisions to NFPA 780 and API RP 545 achieved and how much work still needs to be done? Whereas lightning protection for external floating roof tanks formerly centered around shunts, recent scientific research has shown that another type of contact, the bypass conductor, is equally or more important than the shunt. Actually, it has been a pretty bad time for shunts, as primary metallic shoe seals may be substituted for shunts under certain conditions. Trouble spotsOne of the more surprising things that has emerged is that openings, such as thief hatches, are much more likely sources of ignition than originally imagined. Field testing has revealed that the resistance between the hatch and collar is much higher than predicted. That resistance can be the source of ignition producing arcs when potential must equalise across them. This caution does not apply to the dogged-down hatches normally found on storage tanks.There have also been multiple fires at site protected with overhead wire (catenary) systems.

Magnetic flux leakage evaluations

Magnetic flux leakage (MFL) is a technique that has been used for many years to evaluate carbon steel for variousanomalies such as defective workmanship from the manufacturer and service induced defects occurring over time. items inspected include line pipe, drill pipe, casing, and tubing in the oil country tubular goods industry.In some instances, the pipe is inspected when purchased as new to determine that it meets some minimum standard. These inspections are aimed at finding defects introduced during the production process at the mill. Examples of mill defects include laps, seams, pits, and cracks. Additional inspections may be performed as the product ages. These inspections are intended to find other service induced defects such as mechanical damage or corrosion pitting.During the last 25 years the inspection technique has been applied to the inspection of above ground storage tank floors for the primary purpose of finding corrosion pitting and have yielded overall good results. However, there have been a few instances that occasionally cause end users to question the validity of the technique.

Cyber security challenges of tank terminals

Over the past few decades the automation of tank terminals has increased dramatically. They depend heavily onautomated systems for controlling, managing and maintaining the installations.This increased level of automation has brought new security challenges and risks to the terminals. It has become virtually impossible to run a terminal safely without automated control systems therefore they need to always be available and reliable.Tank terminals must be kept safe from hackers, terrorists and other adversaries that want to steal confidential data or interfere with onsite processes. Marcel Jutte, Hudson Cybertec’s managing director, says: ‘Many tank terminals are a sitting duck for these adversaries. It is time for the senior management to recognise that their companiesare at serious risk if they don’t take cyber security serious right now.’

The changing face of portable certification in tank inspection qualifications

Since 1989, API’s individual certification programmes (ICP) have provided the petroleum and petrochemical industries with an independent and unbiased way to evaluate the knowledge and experience of technical and inspection personnel. These certification programmes are based on recognised industry-developed standards.ICP testing, developed in partnership with industry leaders, confirms that certified inspectors and personnel will demonstrate competence in content areas that are relevant to their practices. ICP’s certifications have come to be regarded as the most demanded and desired credentials in the industry. API certified inspectors and personnelare recognised worldwide as professionals who are fully knowledgeable of the relevant industry inspection codes and standards, and who are capable of performing their jobs in accordance with the latest and most acceptable industry inspection practices, codes and standards.