Tank Storage Magazine v12 i07

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Volume: 12
Issue: 7
Date Published: December 19, 2016

Category:

Headlines

Storage for the inland energy markets

A strong economy and a growth in development projects in Kenya has provided the ideal platform for Vivo Energy Kenya to expand its storage offering. A surge in demand for diesel and petrol products driven by a blossoming economy has spurred Vivo Energy Kenya to expand its midstream assets to reach more inland energy markets.The company, which distributes and markets Shell-branded products and services in Kenya, has been on a growth trajectory over the past four years as a result in a surge in demand for diesel products at service stations as well as in manufacturing and agricultural sectors.In 2015, the company expanded petrol storage at its Shimanzi facility in Mombasa with two fuel storage tanks with a total capacity of 14 million litres of petrol. Additionally, in September 2016, a 23 million litre diesel storage tank and a five million litre petrol tank were also commissioned.


New team, new energy

In November 2016 the Port of Amsterdam marked its first LNG bunkering of an ocean going vessel. The truck-to-ship bunkering took place on the Groene Kade, a temporary facility in the Amerikahaven,The Port is now looking to create a more permanent bunkering facility, which is both safe and efficient, along with various partners such as Titan LNG. This is expected to be ready in 2018. The Port also looks at other small scale applications for LNG. The Port of Amsterdam is western Europe’s fourth largest port and a global hub for light and middle distillates. The port is the world biggest petrol hub, having more than 6 million m3 tankage capacity available. The Port is highly specialised in blending, having the most flexible blending capacity. It is also focused on driving new initiatives and investments.'We have a new team, which understand the clients we work with,’ Femke Brenninkmeijer, cluster energy manager at the Port of Amsterdam explains. ‘We work hard with our terminals in improve efficiency and bring more tankage online.


Tough times ahead for oil

As the oil markets start to slowly rebalance, the 2016 World Energy Outlook says a new period of price volatility could be on the horizon as supply and demand economics seek an equilibrium Despite a fairly tumultuous year for oil markets, there are clear signs that the market is slowly rebalancing – but there are still tough times ahead for the industry.The International Energy Agency’s World Energy Outlook 2016 warns that the shortterm risks to oil markets comes from the significant cuts in upstream spending, resulting in a slowdown in the emergence of newprojects.Previouly, the IEA said in their 2015 outlook that cuts above 20% in upstream investment by many companies fed through into lower medium-term projections of production in Canada, Brazil and Russia.The 2016 report says: ‘There is a threat on the horizon on the ‘baseload’ of oil output, the conventional projects that operate on a different rhythm, with lead times of three to six years from investment decision to first oil.


Marine fuel suplhur limit: a signficant change for all supply chain players

A landmark decision to significantly reduce the sulphur content of bunker fuel by 2020 presents an unprecedentedchange for refiners and will significantly affect all links in the supply chain.The International Maritime Organisation’s (IMO) agreement to implement the global sulphur cap of 0.50% mass/mass by January 1, 2020 is a significant cut from the current 3.5% m/m global limit and highlights the importance shipping is placing on meeting its environmental obligations.The 2020 date was agreed in amendments in Annex VI to the International Convention for the prevention of Pollution from ships. The annex sets progressively stricter regulations to control emissions from ships, includingsulphur oxides and nitrous oxides.


An appealing energy storage solution

One of the largest facilities on the US East Coast reveals how it is looking at alternative energy storage to maximise its attractive business offering United Riverhead Terminal boasts several impressive features that have ensured its success since it was bought four years ago.The facility, located 80 miles east of New York harbour, has the only deepwater off shore barge and ship loading and unloading platform on the US East Coast, which sits in the deepest shipping channel on the East Coast.With petroleum storage capacities exceeding five million barrels, it is ranks as one of the largest storage terminal facilities in the region and in the country.Capitalising on this attractive proposition, the company is currently examining several different projects, which support the need for alternative energy.In an interview with Tank Storage Magazine, Scott Kamm, general manager of United Riverhead Terminal, explains that the facility sits within a 286 acre parcel of land in Suffolk Country, New York, offering potential to grow the business further.


Africa's storage potential waits to be tapped

Despite the headwinds, the continent offers promising, untapped opportunities for storage operators. Criselda Diala-McBride reports Sitting on 128 billion barrels of oil, or 8% of the world’s proven reserves, and with a consumer base that is expected to double by 2050, Africa appears to be a haven for oil storage terminals.But the headline numbers of significant crude deposits and robust population growth rate fail to mask a sense of frustration that has clouded the continent’s very promising, yet underserved, bulk liquid storage sector.Africa’s role in the global oil trade – while admittedly not as hefty as its Middle Eastern neighbours – remains significant.Five of the 14 countries that make up OPEC are from the continent and collectively, they supply 4.92 million barrels per day (bpd) of crude, or more than 12% of the oil trade bloc’s total output in October 2016, according to the International Energy Agency’s (IEA) latest Oil Market Report.


Africa: a growing clean product short

As demand for product grows across Africa, coupled with an aging refinery infrastructure, Energy Aspects’ James McCullagh considers how this will impact the continent’s tank storage sector To understand the factors influencing African tank storage infrastructure, it is necessary to examine product trade flows through Africa, where the hotspots are for trade, and what the demand for product is like. AFRICAN OIL PRODUCT BALANCES IN 30 SECONDSAfrica’s refining capacity (including condensate splitting and synfuels) is ‘stuck’ at 3.4 million barrels per day (mb/d). Demand is 4.5 mb/d – and rising. Low complexity refineries and poor utilisation rates have resulted in fast-growing clean product imports, particularly in sub-Saharan Africa but also, more recently, in North Africa. In most parts of the continent, the forces conspiring for refinery closures continue to look stronger than those seeking to defend, or expand, existing capacity. Africa is a growing clean product short.


Inspection and maintenance failures crucial in West Virginia chemical leak

The final US Chemical Safety Board report into the Elk River chemical spill reveals lessons to be learned by water companies and local authorities Freedom Industries’ failure to inspect or repair corroding steel tanks contributed to the leak of hazardous chemicals into the Elk River, which resulted in a string of federal environmental charges brought against several officials.The final US Chemical Safety Board (CSB) report into the incident additionally concluded that as the chemicals flowedinto the Elk River, water company West Virginia American Waters and local authorities were unable to effectively communicate the looming risks to hundreds of thousands of affected residents, who were left without clean water for drinking, cooking and bathing.The incident spurred the creation and implementation of the Aboveground Storage Tank Act, which created a new section of state code and a new regulatory system including permits, performance standards, leak detection systems, recordkeeping requirements, corrective action requirements and financial assurances.


Oil storage opportunities amid Africa's soaring energy demand

Africa’s annual appetite for gasoil and petrol is expected to climb by as much as 8%, while demand for LPG has hit double digits.The continent’s growing home-grown energy supply will help satisfy some of the burgeoning demand. Africa produced 8.4m b/d of crude last year – 77% came from Nigeria, Algeria, Egypt and Angola, according to PricewaterhouseCoopers’ (PWC) 2016 Africa Oil & Gas Review.But East Africa is elbowing its way under the spotlight and changing Africa’s energy map – a move easily justified by its wealth of oil and gas assets. For example, Tanzania hopes to use its 55 trillion cubic feet of natural gas reserves to become an LNG exporter by 2025, while Tullow and Canada’s Africa Oil have identified 600m barrels of oil reserves in Kenya’s South Lokichar basin.Many projects are still in the exploratory stage, but investors’ appetite has strengthened East Africa’s position in the global energy arena.


New beginnings in tank storage

Contanda Terminals – formerly Westway Terminals – explain how their new name supports their ambition to significantly increase their petrochemical and hydrocarbon storage portfolio With a new name comes new opportunities to grow into flourishing product markets.Contanda Terminals, the new name for Westway Terminals, reflects the company’s ambitions to focus more on petrochemical and hydrocarbon markets by at least doubling its storage capacity over the next five years.Previously, the company was steered towards the agricultural industry but its new strategic direction has expanded and it is now broadening its product line into these markets.The availability of crude oil and natural gas in the US, spurred on by the shale oil revolution, has created long-term investment in petrochemicals – and it is this market shift that Contanda is seeking to capitalise on.In an interview with Tank Storage Magazine G.R. ‘Jerry’ Cardillo, president and CEO of Contanda, explains his ambitions for the company as well as an update on its current and future terminal developments.


Wleding: from hours to minutes

A custom-made welding machine has allowed Great Basin Industrial to complete projects in colder climates - withimpressive results.The company approached Koike Aronson, Ransome to adapt their automated electro-gas welding machines for field erected tanks with enhanced safety features as well as the ability to weld in colder climates but retain the same productivity and quality benefits.GBI executives also required a machine that could produce welds that would pass the stringent Charpy Impact tests – a requirement for operations in cold weather.The bespoke Vertimatic machine allows GBI to complete jobs in colder climates with a greater degree of operator safety and ease of use compared to other machines and systems currently on the market.In an interview with Tank Storage Magazine, Jeff Reading, GBI construction director explains that the two machines, which were completed and delivered in April 2016, have already been successfully used on five tank construction projects.


Digitalisation: the future for tank storage

Holistic automated processes are essential for storage operators to offer customers greater flexibility and a greater competitive advantage in a volatile price market In this ever volatile pricing market, the role of digital technologies to accelerate established processes and incorporate greater flexibility in less time has become crucial to allow storage operators to stay ahead of market trends.A prevailing theme is the need to reduce ‘time to market’ – from the development of an idea to the execution of plant operations - as a result of the volatile changes in material costs as well as the volatility in the price of storedproducts.Additionally, it has also become more important for customers to respond quickly to capitalise on new market demands and gain an advantage over their competitors by adapting more quickly.Therefore, a holistic digitalisation process is needed for tank storage operators to keep ahead of market trends.


Evolving into steel solutions for storage tanks

At the start of 2016, Madesta was awarded a contract to supply fully prefabricated steel plates for the constructionof three A1 jet fuel tanks at 2,300 m3 each at Larnaca airport, Cyprus.Due to tight schedules all plates were containerised and shipped to the final destination using just in time shipments. Madesta’s prefabrication capacity of ca. 2,500 tonnes per month and high quality output proved to be one of the key factors in completing the project successfully and on time.In the spring of 2016, Upgrade Energy, a Belgian EPC contractor, used Madesta plates for the construction of a new tank terminal in Ghent, Belgium. The terminal is part of a larger expansion project spanning several years. For the project, 3,000 tonnes of steel were shipped using just-intime deliveries by trucks and bulk shipments, straight to the construction site.Several courses of five 50 meter diameter tanks have already been constructed. The tanks are planned to be fully operational in the spring of 2017.


Protecting your storage tanks from the inside out

The importance of corrosion prevention in storage tanks, whether internally or externally, should not be underestimated.Storage tanks, particularly bulk liquid storage tanks, are subject to some of the harshest conditions of any industrial asset. As a coatings manufacturer it is important that these key challenges are understood.THE CHALLENGESStorage tanks need protection internally and externally and each surface exhibits its own set of challenges.Externally, storage tanks are under constant attack from their surroundings and this can lead to early coating breakdown and rust.Rusty tanks do not suggest a well-maintained facility, which may make it difficult for a company to lease out its storage to potential clients. As most tanks are generally coated in light colours to reflect the sunlight, early coating breakdown can be seen very quickly and so a high-performance coating solution is needed to protect the tanks for as long as possible.


Transforming operations with the industrial Internet of Things

The Industrial Internet of Things (IIoT) has the potential to transform every facet of tank storage operations as the market moves towards more process-driven digitalisation.IIOT harnesses data, data analytics and big data analytics and applies it to streamlining industrial plant processes, making them more resilient, flexible and easy-to-use and navigate.The potential of IIoT for midstream and downstream operations was highlighted in greater detail at Honeywell Process Solutions’ EMEA users group at The Hague in Amsterdam. Vimal Kapur, president of Honeywell Process Solutions explained that the IIoT alters the basic architecture underpinning processes at terminal facilities to facilitate more effective work flows.He told delegates: ‘The work life has new challenges as a result of technology. This [the IIoT] is not a revolution, it is using what we have and getting maximum benefits from it.


Meeting the challenges of lifting tanks

The days of trial and error have passed and safety is of upmost importance.In 1982 it was a challenge just trying to convince clients to lift a storage tank for repairs.But where are we in 2016? Almost in the same place – convincing clients or their engineers that placing some plaster idea on the tank isn’t repairing tank problems and that lifting their tank is a proven repair method, to fix their foundation issues or replacement of the tank bottoms under the lifted tank. A lifted tank is not a suspended load, it is a supported load and working under a lifted tank is safe.As a tank owner, you must ask yourself, not why to lift a tank but when to lift. The hope of tank owners is to never have to lift or repair their tank in the first place; when built correctly together with an excellent maintenance plan, atank should last a life time.


Getting your arms around funcation safety

If you manage a process plant, your workforce may be about to come to you with news of the release of the new (second) edition of IEC 61511, the standard for instrumented protection systems.Although compliance with this standard is not a legal requirement, it is the accepted benchmark of good practice. It is the ruler the regulator will hold up to measure process operations by. This new edition has been long anticipated, but what are the implications for management of the process plant?In many respects the message from the second edition is ‘steady as she goes’. For the most part the changes relate to clarifications or reinforcement rather than substantive change. There is little that is really new – the explicit requirement to consider cyber security is new, but no surprise of course and always implicit in the original requirement to consider system security.


Africa: is it worth the risk?

With political uncertainty, transactions taking 3-4 years to close and trillions of dollars in investment being deferred, Africa may represent opportunity, but can this be turned into reality? Margaret Dunn reports ‘Africa Rising’ was a term coined to describe the rapid economic growth in sub-Saharan Africa since 2000 and the belief in the inevitability of further, rapid development on the continent.It was repeatedly heard at this year’s Argus Africa Storage & Logistics Conference in Cape Town, yet often with a touch of caution.According to Rolake Akinkugbe, head of energy and natural resources at FBN Capital, the global oil price outlook has had a very negative impact on growth, investment and financing across sub-Saharan Africa. She used Nigeria as an example – a country that officially fell into recession in Q2 2016, contracting by 2.2%.The World Bank has now revised its growth rates in sub-Saharan Africa to 2.5% in 2016 from 3% in 2015, largely due to sluggish growth in South Africa and Nigeria. To put this into perspective, from 2010-2014 growth rates averaged 6%.


An active expansion and investment market

A shift in fund structures may not have meant much before – but the industry is now taking note of the fact thatinvestors are increasingly interested in allocating funds to the storage market.During the 2016 Tank Storage Germany conference, delegates learnt how infrastructure investment is focusing more on tank storage as a viable investment. The role tank storage plays in the supply chain, the product mix it canaccommodate and location creates an attractive business proposition by offering long-term, predictable cashflow generation.Robert Hardy, investment principal at J.P. Morgan Asset Management, explained that the traditional fund structure of 60/40 is no longer working and that people are moving to other areas such as infrastructure investment, which isa low volatile asset class.