Asia's next petrochemical & oil storage hub
Designed to complement Singapore’s oil and gas storage capabilities, the Tanjung Bin Petrochemical and Maritime Industrial Centre will help create a regional centre for oil and gas services in Asia Strategically positioned on one of the world’s busiest shipping routes, coupled with its proximity to an international oil and gas hub and growth markets, the Tanjung Bin Petrochemical and Maritime Industrial Centre will help create Asia’s next international storage & trading hub.The industrial centre (TBPMIC) is a 2,255-acre complex focused on serving petrochemical markets, oil storage and maritime industries in the region.Located directly opposite one of South East Asia’s major transhipment hubs – the Port of Tanjung Pelepas – the complex sits within Iskandar Malaysia, an economic development corridor in Johor that has been identified as one of the catalyst developments to spur the growth of the Malaysian economy.With ambitions to become the southern gateway to Asia, the corridor is expected to command a GDP of $93 billion, supporting a population of four million by 2025.
Singapore's new safety case regime
The new safety case regime enhances and streamlines regulations for major hazard installations and promotes a better understanding of major accident hazards and risks. Jasmin McDermott reports Singapore’s journey to its new safety case regime started four years ago when an interagency taskforce was created to review and enhance the country’s existing regulatory framework for major hazard installations.Led by the Ministry of Manpower (MOM), under the Government of Singapore, the taskforce was charged with enhancing existing regulations to be in line with international best practices.As part of its work the taskforce, which comprised representatives from eight organisations, it studied regulatory frameworks in Germany, the UK and the Netherlands.In December 2014, the taskforce recommended that Singapore introduce a safety case regime for MHIs and establish a National MHI Regulatory Office (NMRO) to have better oversight of safety, health and environmental matters in MHIs.
Implementation of ISO 45001 - an industrial experience
ISO 45001 is a new international standard for occupational health and safety (OH&S) that was finalised and published in March 2018.It provides a framework for the management of illness, injury and death with the objective of improving and providing a safe and healthy workplace for workers and persons under an organisation’s boundary of control.The predecessor to ISO 45001 is OHSAS 18001. Its purpose is ‘to enable an organisation to control its OH&S risks and improve its OH&S performance’. ISO 45001 takes many steps further ‘to enable an organisation to proactively improve its OH&S performance in preventing injury and ill-health’. While the structure of ISO 45001 is similar to OHSAS 18001, there are several notable changes in certain clauses.
Compelling strategic storage in Singapore
With strong demand for transportation fuels and petroleum products in the foreseeable future, Jurong Port TankTerminals will leverage several strategic benefits to capitalise on Singapore’s premier oil & gas position Against a fluctuating oil price market and evolving trade flows, Asia continues to be a leading demand driver in key energy markets, increasing by 280% over the last 45 years.This growth in petroleum product demand reinforces product flows into South East Asia through the Straits and supports the need for storage and supply chain infrastructure in Singapore.Supported by a strong refinery base of 1.5 million barrels per day of crude oil and anchored by S&P Platts oil pricing centre for Asia trades, Singapore remains the only major independent terminal and storage hub in South East Asia and as such is a key trading hub for oil products in the region.In addition to favourable demand dynamics, the International Maritime Organisation’s sulphur fuel cap, which will reduce the amount of sulphur in bunker fuel from 3.5% to 0.5% on January 1, 2020, also presents opportunities for storage infrastructure in the region.
Asian storage - the opportunities and challenges
Asian bulk liquid terminal operators will tell you that they have seen better days. With the oil markets in backwardation, and severe competition amongst traders, storage terminals are sensing the commercial pressures. But the storage market is not homogeneous. Terminals in hub locations are definitely feeling the pinch, but for storage operators in most ports, it is steady sailing. GREATER SINGAPORE: A CLASSIC OVERSUPPLY STORYThe Greater Singapore region is an important hub for cargo flows given its strategic location on the Malacca Strait. Since Ancient Chinese times, this waterway is a critical trading route which today, is the second busiest in the world.Coupled with the flexibility of operating in Singapore, the world’s major trading houses have capitalised on this hub which has seen the growth of a robust oil trading environment, demanding independent storage terminalinfrastructure.
IMO 2020: the big debate
In less than two years, what has been described as the biggest disruption to the shipping and oil industry will take place. The International Maritime Organisation regulation to reduce sulphur oxides emissions from ships from 3.5% to 0.5% will be enacted as of January 1, 2020. However, there are still many unknowns surrounding the change and it remains a hotly debated topic. Here, Tank Storage Magazine presents insights on IMO 2020 from a storage, shipping and refining perspective…
Is the price still right?
A lot has changed in the space of 12 months. A year ago, oil was in an apparently sustained downturn. In contrast, at one point in July this year, Brent was over $78 a barrel and WTI close to $74 a barrel.While contango was apparently the order of the day last August, 12 months later numerous factors in play across the world make predicting oil prices very difficult. Until recently OPEC had curtailed production to combat the downward price spiral. However, upheavals in Libya and Nigeria (where higher flows were pressuring oil prices a year ago),along with stalled Venezuelan production, US sanctions on Iran, and question marks over ongoing capital expenditure by some large oil and gas groups, as well as a rising cost curve for new finds, could push the price too far in the other direction – certainly for Asia, which is not a major crude producer and needs to import crude to supplement declining production.
UK tank storage - a need to react and adapt
Peter Davidson, executive director of UK-based Tank Storage Association examines the challenges facing the bulk liquid storage sector in the UK and how the industry needs to react and adapt to this ever-changing market The bulk liquid storage sector is facing many challenges, both in the UK and globally. New legislation and a drive by governments towards decarbonisation requires the industry to react and adapt. REDUCING EMISSIONSMany countries across Europe have committed to ambitious plans to reduce emissions from fossil fuels in the coming years. The UK Government announced in 2017 that it intended to ban all new petrol and diesel cars and vans from 2040 – although in recent months the language used has been moderated, with ministers referring to this is a ‘mission’ rather than a statement of fact. However, clearly there is need for industry across the downstream fuels sector to work closely with government – helping to inform and influence on the nature of, and transition to, alternative fuels, ensuring that there will be sufficient investment and capacity to meet the changing demand.The Tank Storage Association (TSA) is working closely with other trade associations to ensure consistent messaging in response to government consultations (such as the Road to Zero and Clean Air strategies). It is also developinga comprehensive map of the UK supply chain from source to consumer to better understand the potential consequences (either intended or unintended) of policy and legislation proposals.
International ambition fuels port potential
Located next to one of the most important petrochemical clusters in southern Europe, the Port of Tarragona’s potential to optimise trade flows from the East into Europe is fuelling its growth ambition. Tank Storage Magazinespeaks to its three storage operators to find out how they are leveraging these opportunities for their businesses The Port of Tarragona is blessed with several geographical and commercial benefits making it an ideal alternativetrade gateway into Europe. Nestled within the flourishing Mediterranean region, which acts as a conduit for trade flows from both the eastand the west, the port not only has a natural deep-sea draft and is strategically located next to ChemMed, one of the most important petrochemical clusters in southern Europe, it is also supported by excellent transport infrastructure.
A Mediterranean port alternative for Europe
Situated on a major international shipping route, the Port of Marseille Fos positions itself as a southern alternative to the congested ports of northern Europe and has plenty of potential to increase its logistic and industrial capabilities The largest port in France and a natural gateway to Europe, the Port of Marseille Fos has several strategic advantages, including no tide, no lock and a deep draft, that underpin its importance in the continent’s chemical and petrochemical supply chain.Hosting two major petrochemical terminals, both operated by Fluxel, the entire Fos industrial zone and port spans 10,000 hectares, which equates to the size of the city of Paris.Positioned on the shores of the Mediterranean, the port is also located on the major shipping routes connecting Asia and the Middle East, as well as the Mediterranean and northern Europe.
Securing long-term customer commitment for Indian chemical storage
As per industry estimates, total liquid cargo volume handled at Indian ports during financial year 2017-2018 was 333 to 335 million tonnes (MMT).This significant level of liquid cargo volume requires not only an efficient infrastructure for handling and storage in ports and liquid cargo terminals but also a concerted effort to effectively manage the complete logistics chain in order to manage and control logistics costs.Liquid cargo volume comprise: crude oil 222 MMT (66.7%); POL products 69 to 70 MMT (20.8%); chemicals 25.5 to 26 MMT (7.7%) and vegetable oils 16 to 16.5 MMT (4.8%). Crude oil imports are handled at ports with dedicated infrastructure for different refineries located in various parts. Coastal refineries enjoy the advantage of logistics costs for handling imported crude oil as well as export/coastal movement of POL products.
Oil insights from the skies
Oil production has witnessed a significant growth rate in relation to the demand from end-users, urging suppliers to enhance their inventories and infrastructure to store large quantities of crude oil. The oil market is constantly evolving: it is therefore a difficult ‘beast’ to comprehend, analyse and forecast. An almost endless list of methods and techniques are employed by traders and analysts to derive qualified insights into regional oil terminals and refineries.The hyper-competitive environment of the trading floor drives market analysts to research a diverse range of information sources. This drive is essentially positive in nature: it can be argued that it is this dynamic that has both compelled existing data providers to evolve and allowed new information sources to enter the market. One example of market development comes from the aerospace industry with the introduction of very high resolution (VHR) satellite imagery to improve the monitoring and measurement of oil storage tanks and terminals.
Implementing future-proof emission treatment in tank terminals
The world is increasingly focused on reducing the environmental impact of industrial activities. One of the fields of attention is the reduction of volatile organic compound emissions from tank storage and product transfer activities.What is the challenge that the tank storage industry is facing, and what solutions are possible from a technical point of view? Royal Vopak implemented emission treatment at its Amsterdam Westpoort terminal to be at the forefront of emission reduction and become a class leading example of a low-emission tank storage facility.
Storm preparation: wind loading and water currents
In the second of a two-part article series, Philip Myers and Brock Trotter, PEMY Consulting, examine how tank owners & operators can prepare their facilities to minimise the effects of hurricane season The first article, Storm preparation: flood risk and buoyancy hazards, discussed the risks and failure modes associated with flooding and buoyancy caused by hurricanes and tropical storms.Flooding and buoyancy can cause tanks to be lifted and pushed off their foundation or overturned. Any of these failures could mean excessive costs in repairs, cleanup, downtime, and litigation. The most financially devastating storms in history occurred throughout August 2017. Harvey, Maria, and Irma were so deadly that the names have been permanently retired from World Meteorological Organisation1.Further, severe storms, especially in the Atlantic Ocean, are becoming more sudden and violent, see Figure 1. The 2017 hurricane season was a testament to this trend with Harvey, Maria, Irma, and Nate devastating the Atlantic coast and causing over $200 billion in damages.With an increased likelihood of a major hurricane, it is important to prepare and invest appropriately to prevent the loss of tanks. The 2018 hurricane season is approaching, and it is vital to consider the risks posed by these storms and how to prevent tank failure.
Tank fire incidents: a different outlook
Petroleum liquid storage is a high-capital and major hazardous installation, which impose large loss potentials. Storage tank fires do not occur frequently, nevertheless such incidents still happen notwithstandingthe various engineering, safety and fire protection improvements learned from previous incidents, which incorporated in to international standards and codes.It is interesting to note that although the frequency of tank fires has decreased, the size of the tanks has increased, presenting a more severe hazard in the event of a fire. As a result, fires involving large aboveground storage tankscan be extremely costly in terms of property damage, business interruption, environmental damage and public opinion. Additionally, the control and extinguishment of full surface tank fires require a large amount of commitment in human logistics and equipment resources.
The next generation of tank inspection services
The introduction of full coverage data collection and analysis has prompted TCI Services to develop an integrated digital solution that adds a new dimension to tank inspection. Jasmin McDermott reports The rapid evolution of industry specific technology has transformed the storage sector, with the availability of data and analysis elevating the standards for tank storage inspections.In this increasingly digital era, the majority of the industrial world has increased it standards for industrial asset integrity including baseline evaluation, risk mitigation, compliance, life expectancy and impact. Governing bodies now mandate inspection intervals and requirements, reflecting more stringent requirements by legislators and customersalike.TCI Services offers a combined vision to provide advanced inspection services, digital data collection, analysis, evaluation and engineering solutions.Following five years of development and extensive field testing, the company developed 3D Prime, a unique inspection solution for traditional services and conventional evaluation methods, which offer more accurate, reliable and repeatable digital data.
A question of safety
With a greater focus on safety at marine installations globally, the demand for safe and reliable access systems in ports and storage terminals is a growing concern. Jasmin McDermott reports on how UK-based Tyne Gangway is serving this industry-led safety mindset There is no doubt that the issue of health and safety at industrial installations is an increasingly growing concern. As the saying goes, ‘if you think safety is expensive, try an accident’ and the cost of an accident goes beyond physical plant damage and injury claims to include the loss of the company’s reputation.At marine installations such as ports, access and safety between a vessel and the portside has historically been a low priority. However, as the industry moves towards making health and safety more of a priority, port executivesare now focused more on giving safe access to ships.‘Reputation is also a key consideration for companies,’ says Ken McDonald, managing director of Tyne Gangway.‘Companies do not want to be seen to not be looking after safety on their installations. There definitely is a greater awareness.
An innovative fire suppression solution
When Saudi Arabian Chevron decided to replace its ageing fire suppression system, it opted for the innovative pressurised instant foam technology.The fire water network at its Kuwaiti Mina Saud tank terminal was 22-years-old and consisted of an underground bare-carbon steel pipe with outdated hydrants. Part of the system was out of service and due for demolition. Executives at the company approached the inventor to completely revamp the old fire suppression system for the facility’s ten storage tanks with its pressurised instant foam (Pi Foam) system.The upgrade was also required to ensure the facility complied with the US National Fire Protection Association requirements as well as its own safety standards. The rapid expansion of homes, offices and support facilities at surrounding Mina Saud in Kuwait placed a greater requirement on a reliable firefighting system.
Holistic approach to fire safety management in storage tanks
Over the 40 years in the process industries a distinctive approach was developed against hazards and failures that cause loss of life and property damages.It involves putting much greater emphasis on technological measures (engineering controls) to control hazards and on trying to do things right first time round. Employers have legal obligation to protect their health and safety of their workforce. Customers across the world are placing increasing demands on contractors for a higher degree of service quality, safety performance and reliability on their products and services rendered. Every employer should manage and conduct their work activities in such a manner to ensure the safety and health of employees. Likewise, authorities are also requiring organisations to demonstrate their legal obligation in protecting people and the environment. For example, Singapore’s Major Hazard Installations Regulation 2017 expects all occupiers of a major hazard installation or deemed major hazard installation to take all measures to bring their identified critical risksmanaged to As Low as Reasonably Practicable (ALARP) and to limit the consequences of major accidents.
An unsinkable, emission & maintenance free floating roof
This unsinkable and maintenance free innovative technology is a seamless non-metallic full contact floating roof. The GRP DeckMaster prevents evaporative losses and is 100% emission free. THE GODFATHER BEHIND THE GRP DECKMASTER30 years ago, Wil Moeling, former managing director of DMT (the predecessor to HMT Tank Systems), invented the GRP DeckMaster internal floating roof. His design objective was to build a 100% emission free and unsinkable roof with zero maintenance. A noble ambition at a time when environmental considerations were often valued less than costs.But customers believed in this innovative roof. And from version 1.0, today the company is on version 5.8. ‘There have been significant changes to the design, but the basic principle has remained unchanged’, explains Moeling.In 1994 the honeycomb structure was introduced, which forms the core of the roof, followed by the antistatic carbon coating a year later. In the years that followed the concept was improved and bigger roofs were subsequently made.
Are your storage tanks properly insulated?
An important part of a storage tank’s capacity is working above or below ambient temperature. A massive amount of energy is used to keep the medium temperature in line with technical specifications.Insulation is proven to be the most economical solution to reduce energy consumption and its CO2 emissions. An up-to-date design of insulation systems as well as proper maintenance routines can help reduce the energy bill.Regular checks on insulation also make facilities safer and help to identify mechanical problems like corrosion.These storage tanks need an input of energy to overcome energy losses through the envelop of the vessels. Energy losses are mainly dependent on: the vessels’ size, the shell’s construction system (with or without insulation), the medium’s temperature and level as well as outdoor conditions like ambient temperature and wind speed.