Tank Storage Magazine v13 i04

40.00

Volume: 13
Issue: 4
Date Published: August 30, 2017

Category:

Headlines

Johor: Malaysia's most promising oil cluster

With Johor expected to become one of Malaysia’s major oil clusters, Benalec’s Tanjung Piai Maritime Industrial Park is poised to become an attractive storage alternative to land restricted Singapore With significant refining capacity expected to come on stream in the next two years, Johor is one of Malaysia’s most promising major oil clusters – and the government has ambitious and strategic plans for its storage capabilities too.Currently, independent storage capacity in the Johor region is around 3.5 million m3 compared to Singapore’s more significant 13 million m3.However, with new refining capacity from the Petronas RAPID project due to come on stream in the first quarter of 2019, the region could have vast amounts of available storage and logistical potential.In a bid to capitalise on its potential to become a major oil cluster, the Malaysian government is taking a more active role to reach its target of 10 million m3 of storage by implementing attractive economic strategies and industry regulations to encourage foreign investments into oil storage.


Riding the electric highway

As the role of the electric vehicle in the future is brought into the fore – many are questioning what impact this could have on oil demand going forward and how it will affect oil markets and the role of tank terminals. Jasmin McDermott reports The rise of the electric vehicle has delivered some startling headlines in recent months.The UK is the latest in a string of countries to acknowledge the growing popularity of EVs (electric vehicles) by pledging to ban the sale of all diesel and petrol cars and vans from 2040. It is part of the British government’s clean air plan, which is needed due to the ‘unnecessary and avoidable impact’ that poor air quality has on people’s health.It follows a similar pledge by France, driven by the country’s plan to meet its targets under the Paris climate accord.Likewise, India is also planning to phase out all diesel and petrol cars, however it aims to do this eight years earlier, by 2032. Global energy driver China is also embracing the EV phenomenon by pushing for 8% of car sales to be electric as early as next year – a quota that is pushed to 12% by 2020. By 2025, seven million electric vehicles will be on the country’s roads.


The gateway for North East Asia trade

As the largest bulk liquid storage facility in the Ulsan industrial complex, JeongilStolthaven Ulsan tank terminal is embarking on more growth to handle greater demandfor petrol and petrol product storage Jeongil Stolthaven Ulsan is a crucial facility in Stolthaven’s network as it enables domestic and regional distribution throughout the North Asia Pacific region.The terminal, which is the largest bulk liquid storage facility in the Ulsan/Onsan industrial complex, is Stolthaven’s distribution hub for the region, therefore further development of the facility is vital to ensure it maximises its significant business potential.Since 2012, the facility has undergone several rounds of capacity expansion to cater for greater product demand as well as more customer requests. In 2005, Ulsan Port Authority decided to construct a new port in front of the Jeongil site as part of strategic plans to make Ulsan North East Asia’s oil hub.


A visible sign of success

Greater trading transparency is elevating Fujairah’s importance as a global benchmark, trading and storage hub Fujairah is the natural focal point for trading activity in the Middle East and is therefore a critical hub for oil trading and storage in the region.Its strategic location, extensive storage facilities and well-developed port infrastructure has helped it to become one of the top three global trading hubs after the ARA and Singapore.To support its global significance, the government of Fujairah sought out initiatives that would compel more trading activity and greater investment in the region. As such, the Fujairah Energy Data Committee established an agreement with S&P Global Platts to publish weekly inventory levels of various terminals within the Fujairah Oil Industry Zone (FOIZ).


Creating a storage first for South Korea

Once complete the North East Asian oil hub project will make the Port of Ulsan the third largest storage hub for oil products and chemicals in the world, with 50 million barrels of capacity The Port of Ulsan is positioning itself to absorb increasing demand for storage capacity in the Asia Pacific region following a significant paradigm shift in global trade.The world’s fourth largest liquid handling port is embarking on a significant expansion project, which, once complete, will see it vying for global third position as the storage and distribution hub for oil products and chemicals.The North East Asian oil hub project comprises the construction of commercial tank terminals on newly reclaimed land and is split in two phases. The first phase will involve the construction of 990 million barrels of capacity, with six berths for tanks of up to 120,000 DWT. This phase will mainly focus on storage petroleum products and chemicals, however, in an interview with Tank Storage Magazine Jinwon Choi, assistant manager at the Ulsan Port Authority, says that the addition of LPG and LNG tanks at this phase are also being considered.


Going underground in Singapore

Nestled within the second largest global trading hub, the Jurong Rock Caverns facility’s unique concept allows for more storage potential within a land-constrained country When Jurong Rock Caverns opened the first phase of its underground storage solution in 2014, it achieved several firsts for the region. The facility, located 130 meters beneath Banyan Basin on Jurong Island, Singapore’s energy and chemicals hub, is southeast Asia’s first commercial underground rock cavern storage facility for liquid hydrocarbons.It is also the deepest underground public works project in Singapore.The caverns are a construction and engineering feat, taking JTC, the lead government agency responsible for the development of industrial infrastructure, six years to design and plan and a further nine years to build.


Oil slump means boom time for Asian terminals

A voracious thirst for oil is fuelling demand for oil storage in the region, as Asia mops up excess crude supply. Criselda Diala-McBride reports More than three years since its fall from grace, oil still struggles to climb out of the downturn. To support an oil price recovery, OPEC and its non-member allies agreed to curb production by 1.8 million barrels per day – or around 2% of global oil output – starting in January 2017. But even with this intervention, benchmark Brent and WTI crude only managed to eke out minimal gains. As of 11 August, Brent has increased by just 0.39% to $52.10 per barrel, while WTI climbed 0.47% to $48.82 per barrel.With the output freeze deal extended until March 2018, OPEC aims to steadily shore up crude prices, reduce a stubborn global supply glut and bring back balance to the market.However, at the time of writing, eight months of production cuts have yet to flip oil futures into backwardation.


Value added downstream logistics

A thriving demand for specialty and niche chemicals in Saudi Arabia is fuelling Arabian Chemical Terminals’ plans toexpand infrastructure at its Jubail facility.The facility in Jubail Commercial Park has recently completed an expansion project, which involved the addition of two tankpits with 13 stainless carbon and stainless steel tanks. The extra capacity was commissioned in the second quarter of 2017 along with a new berth.The growth of ACT’s Jubail facility comes on the back of high demand for specialty and niche chemicals in the region. The introduction of trade licenses to foreign manufactures has also opened the supply market to Saudi Arabia, meaning that new streams will be supplied and traded in the country.


Changing trade flows boost Mediterranean hub

The Mediterranean region is looking to enhance its strategic importance as a key trading and storage hub for Europe.And the Port of Tarragona is spearheading a series of initiatives and developments to elevate the region’s importance in the wider web of global trade flows.New trade flows and markets have emerged onto the global energy landscape thanks to new refining capacity coming on stream in the Middle East and the unleashing of Iran’s export sanctions, along with the continuing prominence of the shale oil revolution in the US.These new flows have unlocked significant potential in the Mediterranean region as more trade routes target the conduit and significantly reduce transit times for cargoes. As a result, executives at the Port of Tarragona areensuring their market offering is as attractive as possible to capture more trade.In an interview with Tank Storage Magazine Genoveva Climent, commercial director at the port, explains that storage operators have also been investing in their facilities by increasing capacities as well as improving processes.


Investing in flexible storage

Tepsa’s four Spanish terminals have been flourishing over the past two years thanks to continued business and operations development.An average occupation level of between 92% and 94% accurately reflects the recovery of the Spanish economy. GDP has grown and continues to grow at an annual rate of 3%, meaning that Spain is leading the way among European economies.Tepsa is Spain’s number one company for the storage of chemical products, it being the only company able to offer this service in the four ports where the company operates, namely Barcelona, Bilbao, Tarragona and Valencia.This line of business is supplemented by the storage of oil, biofuel and food products, areas where we offer solutions tailored to customers’ needs. All this is possible thanks to the flexibility of Tepsa’s facilities and the speed to which the company responds to market demands.


Chemical trade flows: a growth story

The global seaborne liquid chemical trade is expected to grow to 183 million metric tonnes (MMT) in 2017.This market is forecast to grow to 202 MMT by 2022. Such growth has kept chemical shipping and tank storage business growing in tandem.While the chemical industry has grown substantially, real GDP growth to world export growth multiplier indicates a ‘normalisation’ trend. Similarly, the GDP to liquid chemical export multiplier has been dropping to a single- digit over last 30 years.This study focuses on volume of basic chemicals and looks broadly at the global and regional markets for the seaborne liquid chemical trade rather than domestic production and consumption between 2004 and 2017.


Improving tank longevity with inspections

Operators will benefit from a longer operating life & peace of mind with a thorough inspection regime Length of service life and low maintenance are key factors in making tank storage purchasing decisions. The life expectancy of a storage tank is hugely important because it affects the period of service, the likely maintenance cost and, finally, the ultimate salvage value.An effective asset management scheme that maximises in-service life by maintaining assets in the best possible condition to achieve optimum utilisation is therefore money well spent. But how can this be achieved when even an inspection regime carried out to the letter of the current regulations may not be enough?Teeside-based Axiom Engineering Associates has many years of experience in asset management, testing and storage tank inspection.It also specialises in forensic failure analysis – the process of collecting and analysing data to determine the cause of a failure and, more importantly, how to prevent it happening again.


A wireless approach to tank level monitoring

Tank level monitoring is a critical operation within the oil and gas, chemical, and refinery markets. It addresses the need to maintain inventory levels, protect against overflow, and ensure accurate process operations. In the past, obtaining tank level data was a manual and laborious task, often prone to error. Today, automated systems transmit tank level and temperature data from sensors to a remote control center.While wired tank level monitoring systems have been around for some time, the unique attributes of oil and gas operations, especially in hazardous areas, prove challenging to them. Cabling requirements, environmentalconditions, multiple sensing requirements, costs, distance, and topography can all present problems. Wireless remote sensing systems are becoming more prevalent in tank level applications as they offer substantial operating and cost advantages over wired systems.


The evolution of dome design

The history of dome design dates back thousands of years and has undergone significant evolution from stone, bricks and cement to steel, timber and aluminium as space-framing, lattice vaults.EARLY WORKSThe design and execution of domes dates back more than 2,000 years and historical evidence of dome roofs still exists today, for example, the Pantheon in Rome, Italy.This particular structure advanced the prototype of all dome structures used for either architectural or industrial applications. This structure set out the foundations for design basics in terms of form-finding methods as well as optimal material allocation.


Tank emissions: finding the true vapour pressure of heavy petroleum stocks

There are multiple initiatives in play in the US concerning estimation of emissions from tanks storing heavy petroleum stocks. The heavy petroleum stocks in question include refinery intermediate streams such as gas oils and products such as No. 6 fuel oil. The initiatives include enforcement as well as research initiatives by regulatory agencies and complementary research by the industry. An issue of particular interest is the determination of the true vapor pressure of heavy petroleum stocks, as this is a critical variable in the estimation of storage tank emissions.WHAT IS TVP AND WHY DOES IT MATTER?TVP (true vapour pressure) has different meanings in different contexts. For the purposes of determining the applicability of air regulations as well as for estimating emissions of volatile organic compounds (VOCs), TVP refers to the sum of the equilibrium partial pressures exerted by the individual VOC compounds in a given mixture at a specified temperature.


A new tank inspection tradition

The use of robotics as part of a tank inspection regime can reduce the process from months to days and improve personnel safety Traditional methods of tank inspection are being revolutionised with the introduction of robotics into the field, which offers a safer, cheaper and faster option for operators.Previously, tank inspection methods would require tanks to be taken out-of-service, drained, degassed, cleaned and personnel sent into a highly dangerous, confined space.This process causes months of expensive downtime costs, as operators need to source secondary containment or an alternative storage area for the product while the tank is being inspected. Additionally, the cleaning and degassing process releases emissions into the atmosphere and results in the disposal of toxic sludge.Robotic technology has however been utilised by Manta Robotics to create an inspection robot that creates a safe, cost effective and environmentally friendly process, which takes days rather than months.


Maintenance free remote fill solution

A Romanian oil company approached OPW to provide an easy-toinstall, reliable above ground fill point solution for a new build filling station including associated internal equipment (pipework and fill caps) that would perform for the life of the site. PROBLEMThe oil company required an above ground remote fill sump which would allow safe fast access to fuelling points for tanker drivers, while protecting against unauthorised access or water ingress from above or below ground for the life of the site.Four fill points and one vapour recovery were specified, with fill caps and an easy-install piping solution to run to the fuel tanks. For safety, all items needed to be conductive to prevent static electricity build-up.Consideration was also given as to the accidental yet inevitable fuel drips and spills that occur when fuelling.