p1 report on petroleum depot processes
TRANSCRIPT
209135832 Page i
Acknowledgment
First and foremost, I would like to take this opportunity to thank my mentor and
boss, Ms Candy Stromvig for her great support and contribution that she had
established and harnessed me with in-service training and work experience, and
for providing with such profound methodologies compiling on this report.
Secondly, I would like to thank Mr Mfanibela Mkhonta (Chevron Depot Manager),
Mr Mamba (Engen Depot Manager), Mr Welcome Dlamini (Total Depot Manager)
and Mr Thulani Radebe (Galp Depot Manager) for helping and giving me the
platform to not only be exposed to fuel oil industry but also for further assisting me
with all factual depot operations and information.
Thirdly many thanks also to Mr Thokozani Mvubu, the Ministry Fuel Laboratory
Manager for also providing me with cutting edge laboratory technology exposure
and tests.
Lastly, I would also like to acknowledge my work colleagues at the Ministry of
Natural Resources and Energy for their great aid and advises; it is my genuine
pleasure to acknowledge their contribution.
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Declaration
I, Mr Mangaliso, Kwanele Msibi student number 209135832 and Passport number
40001242 declare that this is my own original work and I am fully aware of the fact
that, in the event of false information being provided, this report shall be cancelled
and, I furthermore declares that I am prepared and ready to submit it to the
Faculty of Science and Technology in the Department of Chemical Engineering for
National Diploma.
Signature (Student) ______________ date _________________
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Table of Contents Page
Acknowledgment ________________________________________________________________ i
Declaration ____________________________________________________________________ ii
Table of Contents _____________________________________________________________ iii
List of Figures __________________________________________________________________ iv
List of Tables ___________________________________________________________________ v
FUEL OILS VOLUME MONITORING AND STORAGE
1. Introduction _______________________________________________________________ 1
2. Literature Review___________________________________________________________ 3
3 Equipment Design and Description ________________________________________ 10
4 Results and Finding _______________________________________________________ 17
5 Discussion ________________________________________________________________ 21
6 Conclusion ________________________________________________________________ 23
7 Recommendations _________________________________________________________ 24
8 References ________________________________________________________________ 25
9 GLOSSARRY ________________________________________________________________ 26
10 Appendix A (Extras) ________________________________________________________ 27
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List of Figures
Figure3.1.1 Engen Storage Depot Flow Diagram ................................................... 11
Figure3.1. 2 Positive Displacement Rotary Gear Pump .......................................... 12
Figure 3.1.3 Gate Valve......................................................................................... 13
Figure 3.1.4 Globe Valve ....................................................................................... 13
Figure3.1. 5 Plant Layout .................................................................................... 15
Figure 4.1.1 4th Quarter 2015 Import Volumes Graph .......................................... 19
Figure 4.1.2 4th Quarter Fuel Import Volumes Company Import Market Share ..... 20
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List of Tables
Table 3.1.1 Process Flow Diagram Technical Key .................................................. 19
Table 4.2.2 Compartment Dipping Calculation ..................................................... 19
Table 4.2.3 4th Quarter 2015, Import Volumes ...................................................... 19
Table 4.2.4 4th Quarter, Fuel Import Volumes Company Import Market Share ...... 20
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FUEL OILS VOLUME MONITORING AND STORAGE
1. Introduction
For my P1 training, I had been doing an attachment with the Ministry of Natural
Resources and Energy and in liaison with the Petroleum Fuel Storage Depots in
Swaziland. During my training, part of my work was working towards fulfilling the
Ministry‟s mandate of: Monitoring Petroleum Fuel Volume into the country through
railway and road importation. Amongst the specifications envisaged by the Ministry
through fuel volume monitoring was: Fuel Quality and Assurance, and Safety
Storage and Transportation. To ensure that the fuel oil companies are in
compliance, the Ministry carries out scheduled quarterly inspections, randomly
within the Kingdom country at the various fuel oil companies‟ filling stations and at
their respective fuel storage depots. Basically what happens is the fuel oil
companies import fuel from neighbouring countries which are: South Africa and
Mozambique; these fuel oil companies have a storage depot, where the fuel is
stored and thereafter distributed across the country to various stakeholders.
Swaziland is a non-producer of petroleum products, hence all fuel consumed in the
country comes solely from fuel imported by fuel oil companies as mentioned above.
Through the Ministry of Natural Resources and Energy and other Ministries, fuel
importation into the country is regulated, legislated and controlled. The designated
fuel oil companies in Swaziland to distribute fuel are: Chevron, Engen, Caltex,
Total, Exel, Galp Energia, Swaziland Independent Oil Investment, Afri-son Oils (Pty)
Ltd and Trans Lubombo.
So far what I had been tasked to do is to monitor the fuel petrol, diesel and paraffin
imports and sales volumes into the country. Perform fuel inspections on
commercial border posts, on fuel filling stations, fuel depots and on commercial
distributing sites. Then carry out laboratory work, run tests of the fuel to
determine properties such as sulphur content, octane number, flash point,
moisture content, viscosity etc. Subsequently co-compile a report, based on the
results of the laboratory tests and inspection assessments. Report to the various
clients, stakeholders and when required, also to authorities, and to other
Ministries.
Swaziland relies on fuel imports from South Africa, mostly to meet its transport
sector needs. One of the Swaziland‟s Government key priorities is to ensure a
secure and resilient fuel oil at affordable price to the country is supplied. The fuel
oil importers into the Kingdom play a critical role in providing fuel oil products that
is of great importance to the economy of the country and way of life.
There has been a steady transition from importing to domestic production to
reduce the high costs of fuel oil imports. In light of this the Department of Energy,
Ministry of Natural Resources and Energy working with other Departments,
stakeholders and agencies has reviewed the imports sector in the Kingdom to
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assess whether steps are needed to maintain secure and resilient fuel supplies. The
Swaziland‟s Government through the Ministry and other agencies has also
embarked on a number of plans to meet the fuel demand in the country. Such
projects include the developing of a Strategic Fuel Storage at Phuzumoya; which is
a fuel oil storage depot, set to sustain the State fuel oils with a holding capacity for
3 months without fuel importation into the country. This proposed new Strategic
Fuel Storage at Phuzumoya is expected to increase the holding capacity by 90 000
Kilo-Litres holding capacity. The Ministry has also piloted a biofuel (ethanol-petrol)
blended fuel production.
The overall objective of this report is to provide the Institution with my factual
results, statistics pertaining fuel volume monitoring and also narrate about my
industry exposure with reference to the fuel oil depot storage in Swaziland; and
also tells about the processes and experiments I had encountered.
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2. Literature Review The Depot is simple batch operated petroleum storage without production process
though. Batch processes are designed to operate intermittently. With either all or
some of the process units being frequently shut down and started up. Larger fuel
oil refineries depots are designed to operate 24 hours a day, 7 days a week,
throughout the year, receiving and processing fuel oils on continues basis. Some
down time is allowed for such depot plants maintenance and, for some cleaning
processes. For larger fuel oil refineries continuous processes are usually more
economical for large scale production. Batch processes are used where some
flexibility is wanted in production rate or product specification.
Ordinarily for fuel oil storage depots refineries or terminals have approximately
capacity of 90 to 100 million Kilo-Litres of barrels of crude oil. One of the major
concerns is the environmental impact of a fuel oil spill and fire. Therefore they are
several factors need to be investigated: type of fuel oil spill, causes of a fuel oil spill,
costs for clean-up and hearing, and ecological damage. One prevalent trend in the
causes of fuel oil spills is human error and equipment failure. Another trend is that
ecological damage is lessened when the spill is small and clean-up is quick and
efficient. The design should address these factors. The type of fuel oil is also very
important when considering the effects of a fuel oil spill. Lighter fuel oils can be
cleaned up more easily than heavier fuel oils. The cost for clean-up depends on the
amount spilled and the time delay before clean-up.
2.1 Plant Layout
2.1.1 Location of Fuel Oil Depot
According to Scottish Environment Protection Authority, factors to be considered before deciding where to build a depot must include: environmental and fire protection, access, and maintenance and security requirements where to put new storage fuel oil tanks. It is recommended that storage depots tanks are not placed on high risk locations; these are: It must be 50 metres away of a spring, well or borehole; It must be 10 metres away of a watercourse; places where spilt fuel oil could
enter open drains, loose fitting manhole covers or soak into the ground where it could pollute groundwater;
Places where a spill could run over hard ground to enter a stream or soak into the ground where it could pollute groundwater;
2.1.2 Regulations
Bunding is a legal requirement in many countries particularly around tanks,
storage vessels and other plant that contain liquids which may be dangerous or
hazardous to the environment. Particular examples which receive specific
attention in the Europe, the rest of Africa and the Asia are fuel oil and fuel
storage tanks.
2.1.3 Bunding/Liquid containment
Fuel oil spills is among the most common pollutants at depots and adversely to the
environment. Cleaning up fuel oil spills can be difficult and expensive. Hence it is
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of great importance to construct proper preventive measures for fuel oil spills as
well as provide extensive staff training with regards to fuel oil spills.
As defined by the South Australian Environment Protection Authority, bunding is
type retaining wall constructed around storage tanks, used to prevent the liquid
from causing damage either by force or its chemistry; where potentially polluting
substances are handled especially fuel petroleum fuel oils, processed or stored, for
the purposes of containing any unintended escape of material from that area until
such time as remedial action can be taken. If a large tank has a catastrophic
failure, the liquid alone can cause extensive damage.
The term bunding can also refer to dikes, but it is frequently used to describe liquid
containment facilities that prevent leaks and spillage from tanks and pipes, though
sometimes any barrier is referred to as bunding. Frequently, the liquids in these
tanks and pipes are toxic, and bunding essential for control measures. It is
reasonably easy to construct a "water-tight" bund around the base of a tank or
vessel. A concrete base and a sealed wall of masonry, brickwork, concrete or even
prefabricated steel provides the holding capacity. In the UK commercial
installations exceeding 200 litres and domestic installations exceeding 2500 litres
require a bunded tank to comply with Environment Agency 'control of pollution
regulations as stipulated in “Above-ground proprietary prefabricated oil storage
tank systems” as cited on Scottish Environment Protection Authority.
Properties of a well construct bund wall.
If built properly, bunding is large enough and strong enough to contain the
contents of an entire tank, though regulations may require it to be up to a third
larger. When multiple tanks share a bund, the capacity is based on the largest
tank. In Matsapha Depot I had discovered that the bund holding capacity is
110% of the tanks capacity. One of the most common designs for large tanks is
concrete, brickwork, wall around the tank with a concrete floor. The outside of
the wall may be reinforced with an earth berm.
Concrete works very well for many fuel oil liquids. Smaller tanks often use
containers made of cast steel or plastic. The material used depends on cost, the
chemical properties of the liquid and its density. Plastic tanks cannot hold very
dense liquids at high wall levels. Large, exposed bunding will need a sump
pump or some other system to remove precipitation, though it may also be used
to transfer spilled liquid into another container. Rainwater must be treated if
the liquid being stored is toxic because there may be small amounts of it
surrounding the tank. The bund wall usually has a drainage system linked to
an oil water separator tank; where all contaminated rain water and minor oil
spills are collected.
Some bund wall may have a roof to prevent precipitation from getting in, but
steps must be taken to provide adequate ventilation when storing flammable
liquids. If the wall is over a meter high, it may require a ladder or steps to allow
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people to escape quickly. Another design uses a channel that drains the liquid
to a secondary container.
Bund wall at tank storage facilities should be from 0.5 m to 1.5 m high,
depending on the required containment capacity and the distance to the tank;
the closer the wall to the tank, the higher the wall should be. The distance
between tanks and bund walls should be at least 1 m. If the bund walls are
more than 1 m above the compound floor, consideration of providing steps or
ladders for quick escape should be made. For bund walls close to tanks or
higher than 1.5 m, the rules applicable for confined spaces may apply. A hump
or slope type bunding is helpful when vehicles need access to the area. There is
also a type of bunding that compresses when a vehicle passes over and expands
once it has passed.
To make sure a constructed bund retains its integrity, a reputable company to
repair any defects in the bund wall or lining promptly must be used.
2.1.4 Fuel oil Spills
The most important of all efforts for a fuel oil spill is the preplanning clean-up
activity. Therefore, information, concerning the environment, must be obtained.
This design is meant to be a guide, and should be modified for the location chosen
for the storage facility. Fuel oil spillage losses can be minimised by installing
adequate safety systems, level switch indication, detection and level alarms
working in sequence, not in parallel; meaning they shouldn‟t be dependent on each
other. Also customer site spill response plan is important for the depot staff. In
scenario of fuel oil spills the complaint activates an emergency response plan,
further on the depot manager and staff members also takes preventative measures
against the fuel oil spill.
The area around the tanks where deliveries and loading are made and, if applicable, fuel oil is dispensed should have an impermeable surface and be isolated from surface water drainage systems. This will prevent fuel oil and/or contaminated water getting into the fuel oil and groundwater. If any fuel oil is spilt during a fuel oil delivery, it should be made sure that it does not run into a surface water drainage system. In common basis suitably sized fuel oil separator to direct fuel oily liquid away from surface waters and prevent fuel oil escaping from the site are part of depot design. This reduces the risk of any spilt fuel oil causing pollution if there‟s a spill.
Registered competent technician must be used to check the tanks, bunding and pipework for signs of damage or leaks every year and remove any condensation water that has accumulated within the tanks. During the site inspection and maintenance, written report on the state of the tanks after the inspection is completed are left behind for depot managers. Any repairs or alterations detailed in the report should be done by a registered, competent technician straightaway. Check valves are used to prevent backflow through pumps, branch lines, meters, or other locations where runback or reverse flow are maintained or avoided. Check valves may be of the swing disk, globe, and dual plate hinged disk, spring-loaded poppet, ball valves as reported by Stefan J.R. Simons (2007)
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General Fuel oil Spill Emergency Response Plan
He or she the complaint must raise alarm depending on severity of spill.
Activate the shut-off valve & switch-off the engine.
Hit emergency pump switch to deactivate pumps.
Notify the Site Manager/Shift Supervisor on duty.
Take necessary precautionary measures while awaiting emergency services
response & eliminate any ignition source.
Prevent all potential run-offs to the drains, rivers, streams, etc. by creating
dikes/diverging when possible by using spill kit or natural sand or soil.
Depot Manager/Site Manager
If there is a significant spillage, the depot manger notifies the fire department,
municipality, the local environmental authority Swaziland Environmental
Authority (SEA), emergency services & rapid spill response team and all relevant
bodies.
After all the necessary spill cleaning procedures followed, the Depot Manager
complete event report, determines the volumes of the recovered product against
the volumes of the spilled product & assesses the affected areas.
Staff Members
All staff are expected to evacuate to the emergency assembly point and await
further instructions; that is:
Prevent all potential run-offs to the drains, rivers, streams, etc. by creating
dikes/diverging when possible by using spill kit or natural sand or soil. Dikes
are a form of “secondary” containment in the event of a spill. The diking
arrangement used in the plot plan is a combination of a concrete wall reinforced
with earth on the outside. The dike volume is calculated to hold the contents of
the largest tank within the diked area.
Security
Remove all vehicles from site and security to record their exit.
The security prevents all vehicles except for emergency vehicles from entering
the site.
Telephone Controller
Phone all relevant emergency services & operational staff depending on severity
of spill
Emergency services personnel will resume control over the situation upon their
arrival.
2.2 Swaziland Environmental Authority (SEA) This law enforcement body provide regulations which require people who operate or
intends to operate a fuel oil storage depot to prevent or limit the environmental
damage which they may cause. This regulating body require fuel oil companies to
prevent serious environmental damage from their activities or to take action to
remedy it. Environmental damage includes: serious damage to surface water or
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groundwater; contamination of land where there is a significant risk to human
health; this may include includes:
Private businesses, Farming, Manufacturing businesses, Waste management businesses, Forestry operations and agricultural lands, Public sector – schools, hospitals and government departments or agencies, Charitable and voluntary organisations. 2.3 Training needs at depot.
To ensure safety of the depot storage facility, its workers, a fire prevention system
has to be designed for the storage depot facilities. Specific training programmes are
necessary for all individuals allowed entry to the depot. For each category of
personnel on site, the trainings are repeated periodically. These categories of staff
individual include site personnel, external truck drivers and security.
2.3.1 Site personnel
A personally administered basic introduction must be given to all site personnel.
The basic training should at minimum identify and describe all the hazards present
on the site, explain general safety precautions associated with each site activity,
and provide essential information on how to behave in an emergency. It is expected
that more specific training will be required depending on the specific tasks and
department assigned. A personal file with the individual training records for all
employees is expected.
2.3.2 External truck drivers
Drivers are expected to be not only competent but also to perform safely their
duties at the depot. Whether they stop frequently or infrequently at the depot it is
not relevant. All truck drivers using the site must be trained for the duties they are
expected to perform. Duties like offloading and loading fuel oil within the depot
storage premises.
2.4 Depot Processes
As aforementioned, another way fuel gets into the country is via cargo trucks
through commercial border posts. These fuel oil companies use a logistic company
named Unitrans; for ferrying the fuel oil from different refineries and terminal at
South Africa and Mozambique. When the fuel has arrived in Swaziland local depot;
offloading and loading processes are performed when the fuel reaches the depot
and thereafter being distributed locally. Subsequently all necessary calculations
are made to record the quantity of fuel received into the depot and quantities of
distributed one. For volume monitoring accuracy concerns daily site depot tanks
dipping are performed early in the opening mornings before operations and at
evenings before depot close. These volumes are used in calculating daily volume
stocks at the depot; hence also get monthly and yearly volume trends.
For commercial purposes the depot relies on pump meter readings to get volumes.
This is more reliable form since the meters are mechanical and saves time of
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volumes calculations unlike the dipping system. However due to pumps
mechanical problems encountered over time, the meter reading gets inconsistent.
With the elapse of time pump cavitation and pump lubrication problems.
Cavitation can occur in centrifugal pumps if the flow of liquid to the suction side is
restricted. To curb this problems; making routine checks is a good way to help
avoid costly and unnecessary shutdowns.
2.4.1 Offloading procedure
Upon arrival at the depot, the trucks are allowed to settle for 05-10 minutes
before decantation.
Meanwhile the site operator carries out safety check-ups on the truck driver
and offloading site personnel expected to decant the truck.
In the interim the depot security officer climbs up the truck and per
compartment start seals verification, cuts and later records all the seals. This is
essential to determine if the product has been tempered with along the way.
After the security has finished, the site operator in turn climbs up the truck,
using a special cased mercury glass thermometer takes an average temperature
from the truck fuel tank. The thermometer is tied to a string and immersed into
the tank for some moments before taking the reading in Degrees Celsius. The
thermometer graduation ranges from -10 oC to 100 oC.
The site operator then check for water content in every compartment using
water paste finder. This paste is applied to a coiled aluminium dip stick and
also immersed into the tank. The presence of water in the product will be
determined by if the water finder changes its colour to purplish.
Thereafter the site operator start taking fuel levels in all the compartments
using a regular shaped rod, calibrated dip stick, with the help of the security
personnel and another site personnel records all the compartmental levels.
The site operator also goes to the actual site tanks to be filled up by decantation
and also perform tank dipping in order to get the ullage and inllage of the site
tank.
Once all the dipping is finished decantation follows; connection of pipes is made
available, open all relevant valves and the site offloading pump is start.
2.4.2 Loading procedure
This process is almost the same as offloading process with few an exceptions being
made. Here there is no tanks‟ dipping made prior to the fuel truck loading; however
water checks are also done on the truck before loading takes to action. Worth
mentioning also is that no temperature reading are taken. The site operator
inspects the loading truck perhaps it is not entirely empty before loading and if
found that remainder product is taken into account during loading. The other
differences are that, loading is facilitated by a different loading pump and a change
of flow within the pipeline streams is inhibited by the result of control valves.
2.5 Fuel oil additive dosage
Additives are the essential to the quality for fuel. At the local storage depot some of the fuel oil companies perform additive fuel dosage solely for railway imported fuel, which is 500 ppm Diesel to be specific. The rest of fuel coming through trucks is
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prior dosed from the various fuel oil companies‟ terminals were it is received in South Africa and Mozambique. The railway ferry only 500ppm diesel and the major reason behind for it to be dosed locally it is because the fuel is directly received from the fuel oil refineries. During distribution, additives are injected before pipeline and fuel oil truck transportation from the terminals. This particular terminal dosing is basically important for giving the fuel a distinctive colorant for each of the different fuel oil companies; Total, Engen, Galp and Puma. When the fuel leaves the terminal, its rightful fuel oil companies generally transfers it from the refiner through the terminals to local storage fuel depot, finally to consumers at distinctive filling stations in Swaziland. For this reason, additives added to the fuel after it leaves the terminal are characterised as aftermarket additives. Most of the pipelines and trucks fuel oil carry multiple products, such as diesel 500 ppm, diesel 50 ppm, ULP 95, LRP 95 and illuminating paraffin. 2.5.1 Refinery terminal Additives
There are many additive factors that determine the quality of diesel, petrol and illuminating kerosene fuels. These additives are injected from the refineries as a prerequisite for fuel quality international standards upon refining processes. Some of the oil refinery terminal additives are as follows: Lubricity additive
It is the most widely used additive at the oil refinery. This additive is added at the refinery terminals, it enhances fuel lubricity.
Some refiner‟s inject additives to improve fuel stability, either as a regular practice stability requirements are set in international standards ASTM D4814-14b.
Some refiners use a cetane number improver. Antifoam additives are also commonly used in Africa to ensure that customers
can fill their cars and trucks without spilling fuel on their hands, clothing, and vehicles.
Anti-Knocking Additive Tetraethyllead (TEL) a widely adopted additive for Unleaded Petrol since the 1920s‟ it is a metal base form lead additive.
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3 Equipment Design and Description
There are four correctly active fuel oil companies that import petroleum fuel and
products into the country namely; Puma, Engen, Galp, and Total. I had noted that
oil companies: Chevron and Exel now has merged to form a new oil company
named Puma. These fuel oil companies made up the storage depot of which I was
based at Matsapha and have an approximate maximum capacity of 4‟403,000
Litres. However due to allowance for expansion and contraction the fuel oil storage
depot is seldom operated to maximum bulk, the Depot Manager highlighted that
point to me. The fuel oil companies store fuel such as Unleaded Petrol (ULP 95),
Lead Replacement Petrol (LRP 95), Diesel 500 PPM, Diesel 50 PPM and Illuminating
paraffin.
Storage depot maintenance and services are carried out randomly by a South
African based company. During the service period the overall depot storage, tanks
and piping systems are assessed to comply with the requirements and be in
accordance with standards for an operational depot. Parameters such as depot life
span, equipment strength of construction material are considered.
3.1 Storage Tanks and Ancillaries.
The Depot storage tanks design is such a way that minimum fuel loss due to
vaporisation is kept. Their design facilitate for the dispersion of flammable vapour
accumulated in case of tank expansion during hotter weather conditions. I had
noted that the depot tanks unfortunately do not have vapour recovery systems to
utilise the fuel vapours losses; but instead there is vapour recovery valve mounted
on top of each and every fuel tank, and designed to dispense excess accumulation
of vapour pressure inside the tanks, thus prevent tank explosion during hot
temperatures. This piece of adjustable equipment simply vents off that excess
vapour pressure to the atmosphere during hot conditions. The tanks are painted
silver on the outside to minimise vapour losses due to vaporization of fuel. I had
also noted that petrol has a higher vaporisation rate as compared to diesel and
paraffin. In light of that the silver painting acts as a reflector of heat from within
and without of the tanks. By painting the fuel storage tank with a reflective paint
such as silver, evaporation losses can be reduced over a dark surface.
The depots were approximately constructed way back in the 1960s hence the
storage tanks do not have modern vapour recovery system, however the fuel
transporting trucks make use of such technology to control the fuel whilst on
transit. The fuel trucks tanks are designed in a way that during expansion and
contraction, minimum losses of vapour are controlled.
In other cold countries like in the USA, in some cases heat exchangers are required
in some portions of a petroleum storage depot. The fuel oils, particularly…, will
require heating during the winter when the temperature falls to a point
approaching the solidification condition. Also during higher soaring temperatures,
vapour recovery systems may be required to contain fuel losses.
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Adequate tank maintenance and inspection are performed annually to see to it that
the depots operate at optimum; however at some times maintenance are carried out
if the depot is at fault.
Figure3.1.1 Engen Storage Depot Flow Diagram
3.1.1Types of fuel oil storage tank There are a number of different types of fuel oil storage tanks available. Above ground fuel oil tanks are usually made from cast steel or polyethylene (plastic). They can be single skinned, double skinned or have a built in bund (integrally bunded) as a complete containment system. The commonly used one at the depots is the steel type and single skinned. Single skinned tanks- This are tanks made from one layer of steel or plastic. Single skinned tanks must be put into a secondary containment system, often referred to as a bund. At the depot I had discovered that they use this type skinned tanks and made of cast steel. Double skinned tanks have two layers of steel or plastic with a very small space between them; any ancillary equipment is positioned outside the second skin. Advantages of Cast Steel Cast steel compared to ordinary steel has:
Higher fragility/ lower toughness. Higher damping ability. Higher stability at higher temperatures Lower cost. Higher thermal capacity.
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3.1.2 Types of Pumps used at Depot
Positive displacement pumps In some of the fuel oil companies at the depot I had found out that others uses positive displacement pumps. In common there are two basic types of positive displacement pumps are reciprocating pumps and rotary pumps. Reciprocating pumps use a reciprocating, or back-and-forth; motion to move the petroleum fuel, while rotary pumps use a rotary motion. Liquid is moved through a reciprocating positive displacement by means of a piston or some other device that moves in a back-and-forth motion. The fuel is admitted into the pump when the motion is in one direction and discharge from the pump when the motion is in the other direction, as sourced from Old EHCAY 3C notes and Pumps 1. Rotary Pumps-Gear Pump Rotary positive displacement pumps displace the fuel with a rotary motion, rather than with a reciprocating motion. A typical example includes a gear pump. One kind of gear-type rotary pump consists of a suction port, a discharge port, a casing, and two gears. A motor or other driver moves only one of the gears, called the driving gear. The other gear, called the idler gear, moves because its teeth are meshed with the teeth of the driver gear.
Figure3.1. 2 Positive Displacement Rotary Gear Pump
During operation at the depot, the fuel enters the gear-type pump through the suction port, and is trapped in the spaces between the gear teeth and the casing. As the gears rotate, the liquid is moved along in these spaces. From the discharge side, the liquid is forced into the discharge port. Positive displacement pump applications Positive displacement pumps have many applications in industry. For example,
they are often used in processes that require the injection and metering of specific
amounts of liquids. A positive displacement pump provides an exact amount of
liquid on each stroke / turn. For this advantage they are normally used for truck
loading purposes at the depot. Ideally positive displacement pumps are generally
used to move relatively small volumes of higher viscosity liquids,
Centrifugal pump operations
For delivery/offloading, centrifugal pumps are mostly used. These types of pumps
use centrifugal force to move the fuel at the depot and are the most common type of
pump used in industry today. In industry and especially at Matsapha Depot,
centrifugal pumps are generally used to move large volumes of liquids with low
viscosity. A typical centrifugal pump has a casing, which includes a volute; a
suction eye; a discharge line; and an impeller. The impeller in this case is a
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circular device that has a series of curved vanes extending out from the centre.
The impeller is attached to the pump shaft. When the shaft rotates, the impeller
rotates with it. The volute is a widening chamber that connects the casing to the
discharge line.
During operation, the fuel enters the pump at the centre, and flows outward to the
edge of the impeller, around the inside of the casing, through the volute, and then
out of the pump through the discharge line. The force that moves the fuel along the
flow path is created when the pump is in operation. As the shaft and the impeller
rotate, the vanes of the impeller push the fuel, causing it to move in the same
direction as the impeller vanes. This rapid circular motion creates a centrifugal
force that throws the liquid outward against the casing. The pumps estimated flow
rate I had found to be 750 Litres per Minute.
As the impeller spins, two things happen. First, as the fuel moves outward, it
creates a reduced pressure at the suction eye. The reduced pressure allows more
liquid to enter the impeller, thus providing a constant flow of liquid into the pump.
Second, because the outside edge of the impeller rotates through a greater distance
than the inside edge, the liquid gains speed as it moves outward. When liquid
finally reaches the volute, it is flowing very fast, and it contains a large amount of
energy.
3.1.3 Pipe fitting and Valves Used
There are basically two uses of valves as highlighted by Mr R Singh
To regulate the flow of fluids
To isolate piping or equipment for maintenance without interrupting other
connected units.
A) gate valve
Is a valve that opens by lifting a round or rectangular wedge out of the path of the
fluid. The distinct feature of a gate valve is the sealing surfaces between the gate
and seats are planar, so gate valves are often used when a straight-line flow of fluid
and minimum restriction is desired. The gate faces can form a wedge shape or they
can be parallel. Gate valves are primarily used to permit or prevent the flow of
liquids, but typical gate valves shouldn't be used for regulating flow, unless they
are specifically designed for that purpose. Because of their ability to cut through
liquids, gate valves are often used in the petroleum industry.
Figure 3.1.3 Gate Valve
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B) globe valve
This a type of valve used for regulating flow in the depot pipeline, consisting of a
movable disk-type element and a stationary ring seat in a generally spherical body.
Globe valves are named for their spherical body shape with the two halves of
the body being separated by an internal baffle see R Singh. This has an opening
that forms a seat onto which a movable plug can be screwed in to close (or shut)
the valve. The plug is also called a disc or disk. In globe valves, the plug is
connected to a stem which is operated by screw action using a hand wheel in
manual valves. Typically, automated globe valves use smooth stems rather
than threaded and are opened and closed by an actuator assembly. The globe
valves at the depot are normally 3 inch diameter and mostly their casing are made
of cast steel.
Figure 3.1.4 Globe Valve
Although globe valves in the past had the spherical bodies which gave them their
name, many modern globe valves do not have much of a spherical shape. However,
the term globe valve is still often used for valves that have such an internal
mechanism. These types of valves are used for applications requiring throttling and
frequent operation ideally at depot.
C) Approval
All connections and joints are approved and of a type approved for fuel-oil piping
systems. All threaded joints and connections are made tight with suitable lubricant
or pipe component. Protection of pipe, equipment and appliances, all fuel-oil
pipelines, equipment and appliances are checked to be protected from physical
damage.
3.1.4 Fuel oil water separator
The depot layout is such that all drainage is connected to a controlled water fuel
oil separator situated at the bottom of the depot. The oil water separator has an
estimated holding capacity of 20 kilo litres of oil and water contamination. The
depot manager stated to me that the oil water separator is often treated once every
year or when serious emergency arises of excessive spillage; this treatment is done
by quartered South African Companies, issues such safe disposal oil the oil and
water methods are also adhered.
209135832 Page 15
Figure3.1.5 Plant Layout
3.2 Leakages
Daily routine depot check-ups are done to inspect possible fuel leakages; and if
detected preventative measures are adopted to eliminate such leakages.
209135832 Page 16
Process Flow Diagram Technical Key
Table 3.1.1 Process Flow Diagram Technical Key
Symbol Name Function
Tank Truck Fuel Oils Ferrying Trucks
Centrifugal Pump Offloading and loading sometimes.
Positive displacement Pump
Loading
Barrel Lubricating Fuel Oils Container
F
Flow meter Manual Volume Gauge meter
Globe Valve Regulating Flow rate
Gate Valve
On and Off flow and Mostly for Throttling
Ball Valve Control Flow
End Caps Block off Flow at end of a pipe Line
V-118 Swing Check Valve
Ensures that fluid flows in one direction only
Open Vent Allow pressure release from tanks and pumps
Fluid Contacting Vessel Additive dosage mixing drum
Carrying Horizontal Vessel Fuel Oils Storage Tank
209135832 Page 17
4 Results and Finding
4.1 Fuel Quality Monitoring
The local storage depots here in Swaziland rely solely on the main suppliers from
Mozambique and South Africa; for fuel oil quality components parameters. The
main fuel quality components taken into consideration at the local depot are water
content, density and temperature. Upon rail or truck decantation routine tests and
checks are performed independently at the fuel lab department under the
Petroleum Inspection Unit at the Ministry of Natural Resources and Energy. The
Department takes samples for quality measures; if it is discovered that one of the
quality components do not conforms to fuel standards, the Ministry thereon
notifies the oil company to take actions.
Fuel quality monitoring is a key element of consumer protection currently provided in terms of the Regulations and is role of the Ministry Swaziland Standards Authority (SWASA). The Regulations set out the minimum requirements for each specified fuel property as well as the test method that will be used to measure that property. They also set out the procedures to be used for sampling and for interpreting test results. The fuel oil industry tests all batches of petrol and diesel prior to sale to ensure compliance with the specifications. The Ministry‟s Petroleum Inspection Unit jointly with SWASA regulatory authority, is required to sample service/filling stations and report to the registered fuel oil company on a regular basis. The frequency, however, is probably not statistically relevant by virtue of testing and sampling constraints and it is a new project recently fully implemented last year 2015, August. All fuel is required to meet the regulated quality, that is, at the point of sale or supply. Some minor changes occur with regard to fuel properties during storage and distribution and are inevitable. The fuel suppliers have therefore developed exchange specifications for refined product. These are more comprehensive and in some cases more stringent than the regulatory requirements. These exchange specifications reflect more specific fit-for-purpose requirements such as geographical variations and allow some operating margin for quality changes between storage and sale; also accompanying Material Safety Data Sheet (MSDS) for the types of fuel, are shared between the refiners and local storage depot. 4.2 Volume Monitoring
Swaziland consumed approximately 106 million litres of petrol, diesel and paraffin during the last quarter of 2015. The Ministry on monthly basis obtain from Swaziland Revenue Authority (SRA), import volumes generated by a data capturing
programme named ASYCUDA at the commercial borders. This import volumes are then analysed by the Ministry and reports subsequently produced. At the local fuel storage depot, daily volume monitoring is performed. There are three methods for volume monitoring, storage tanks manual dipping, trucks manual dipping and gauge meter readings. 4.2.1 Storage Tanks dipping
At the Depot it is important to able to measure how much fuel is left in the tanks
so that in order to know the right amount the storage tanks needs during
offloading and loading and be able to determine fuel losses due to evaporation on
daily basis. This is necessary to monitor the how fast the fuel depletes with daily
209135832 Page 18
especially on hot weather conditions and be able to quantify fuel inflow into the
depot. As a result daily tanks dipping are carried out to find out opening and
closing stocks for fuel onsite. What happens is; using an aluminium dip stick and a
dipping paste, volume depth levels is measured in millimetres and later on with an
aid of a „dipping levels to volume conversion chart‟, approximate volumes are
obtained and calculated. When doing the volumes calculations, reference to the
standard room temperature 20oc is taken into account at all times. This is
attainable by, whenever the dipping volumes are performed at the depot, tank
temperatures are also recorded. This new volumes are then compensated by using
a volume reduction to 20oc conversion chart.
The most reliable and accurate method for volume measuring was found out to be
the tanks manual dipping system however the depot uses pumps gauge meter
readings for commercial purposes since it is automated and hence convenient to
use. Usually as highlighted before, problems encountered by pump gauged meter
reading are due to
Mechanical pump failure,
Cavitation,
Calibration malfunctioning over time,
Air epode , resulting to higher volume detection,
When such problems are encountered, local artisans or mechanics are called to fix
them.
Depot Tank Dipping Calculations
Tank No. 37.
Ambient temperature = 28oC.
Conversion Factor for reducing volume to 20oC = 0.9935.
Dips Level (B) before decanting a truck = 2964mm.
Dips Level (A) after decantation of a truck = 4337mm.
Corresponding Volume for Dip Level B = 87670 Litres.
Corresponding Volume for Dip Level A = 127725 Litres.
Net Declared Volumes = 39775 Litres.
Level A – Level B = Ullage
(127725-87670) = 40055 Litres.
(40055x0.9935) = 39795 Litres.
(39795-39775) = 20 litres
+20 Litres were gained during offloading
Pump Meter Reading Calculations
Reading before offloading (B) = 9194114 Litres.
Reading after offloading (A) = 9154119 Litres.
A-B = Gauge Meter reading
(9194114-9154119) = 39995 Litres.
39995 – 39775 = 220 Litres.
+220 Litres were gained during the offloading
209135832 Page 19
N: B Assumption is made for the pump meter reading that; the meter is working at
room temperature 20oC.
Truck tank Dipping
A seven compartment truck offloaded 500 ppm diesel into Engen Depot. Using
Trucks‟ Dip chart SP 0009 and referencing from dipping procedures, volumes
conversion I calculated as follows:
DIESEL 500PPM
Compartment
No.
BOL Net
Quant.(L)
Dip
(mm)
Recorded
Temperature
Density Dip
Litres
Litres
Loss/Gain
1. 5123 1210 20oC 5138
2. 5119 1290 5234
3. 5118 1430 5221
4. 6105 1550 6183
5. 6104 1S550 6154
6. 6103 1540 6132
7. 6103 1540 6131
Summation 39775 40195 +420
Table 4.2.1 Compartment Dipping Calculation
IMPORT
VOLUM 2015, Last quarter Import Volumes Trend
Petrol
(kilo litres)
Diesel
(kilo litres)
Paraffin
(kilo
litres) Summation Of Fuel Import Vol. (kilo litres)
SEPT 11793.02 13196.1 0 24989.31
OCT 11502.66 12500.7 79.85 24083.204
NOV 11638.06 15720.6 119.35 27478.013
DEC 13376.37 15693.04 79.33 29148.737
36517.09
43914.33
278.53 105699.264
Table 4.2.2 2015, 4th Quarter 2015, Import Volumes
Figure 4.1.1 4th Quarter 2015 Import Volumes Graph
0
20
40
60
80
100
120
140
02000400060008000
1000012000140001600018000
SEPTEMBER OCTOBER NOVEMBER DECEMBER
Kilo
-Lit
res
Kilo
-Lit
res
Months
4 Months Fuel Import Volumes Trend
PETROL
DIESEL
PARAFFIN
209135832 Page 20
Market Share of Fuel Oil Companies Import Volumes
Figure 4.1.2 4th Quarter 2015 Fuel Import Volumes Company Import Market Share
4th Quarter 2015 Fuel Import Volumes Company Import Market Share
FUEL OIL
COMPANIES
SEPTEMBER TO DECEMBER COMPANIES IMPORT VOLUMES
IN KILO-LITRES
ENGEN 20327.646
PUMA 20779.413
GALP ENERGIA 38626.593
TOTAL 25965.612
SUMATION 105699.264
Table 4.2.3 4th Quarter, 2015, Fuel Import Volumes Company Import Market Shar
19%
20%
36%
25%
SEPTEMBER TO DECEMBER OVERAL PETROL,DIESEL AND PARAFFIN IMPORT VOLUMES
ENGEN
PUMA
GALP
TOTAL
209135832 Page 21
5 Discussion
I have conducted a quarterly report for September to December 2015, to get an
indicative data for the inflow of fuel oil in Swaziland. Looking at the past 5 years
volume data, I have observed that there has been an increase in demand for
petroleum fuel and oil products in the country. This has been partly due to the
increase in cars fleet for the past years and due to other factors mentioned in
Conclusion section of this report. To scale up the fuel supply and thus meet the
demand, a Strategic Fuel Storage Project has been implemented by the Government
through the Ministry of Natural Resources and Energy and other Ministries,
Contractors; which is a storage facility set to increase fuel storage stocks facilities
for the entire country able to hold up to ninety (90) days coverage of fuel supply.
This storage capacity will help the country in predicament cases, which may arise
due to increase on fuel pump prices or limited import supply from international
markets or from any unforeseeable catastrophes. This project will ensure a security
of fuel supply in the country. Such depot will be fed by rail and by road tankers
from the neighbouring countries aforementioned on this report.
The Ministry has a Fuel Pricing System which keeps track of the fuel costs on a
daily basis, and this information varies every time due a number of factors. A Unit
Rate Slate see Appendix A, Table10.1 is used to show the average market cost of
fuel in that month and contrasts it with the pump price of fuel set at that
particular month. This fuel pricing system is monitored by a Fuel Pricing
Committee which meets frequently to control fuel pricing in the Kingdom and thus
give an advice to the Ministry on appropriate price changes to be incurred.
The depot tank dipping and pump meter reading accumulation of volumes gains,
are due to some factors. Depot tank dipping gains are as result of the temperature
variances between the different liquid fuel oils have different expansion and
contraction coefficients and those of liquid fuels and reflect the complex mixtures
that make up the fuels. Apparent losses can therefore arise if the pump meter
overestimates or underestimate the volume. The size of any discrepancies will vary
with calibration accuracy also of the pumps systems, calibration frequency and the
closeness of the graduation flow conditions to the real life conditions during the
depot operations.
Actual losses could have been the result from a number of mechanisms namely:
Incomplete truck emptying during offloading,
Unforeseeable depot spillage,
Vapour loss on transfer of fuel and,
Breathing losses from the depot storage tanks.
During loading at the Terminals in South Africa and Mozambique any fuel free in
the truck compartment or train wagons would result in the trucks/trains
containing excess fuel when refilled and so would appear as a gain when reaching
the local Fuel Storage Depot at Matsapha.
209135832 Page 22
I had worked and found out that between September and October the overall
import volumes decreased by 1.25 percent for petrol. The petrol decrease was on
account of fuel oil companies imported less fuel in October due to less demand as
graphically depicted on Table 4.2.2 and Figure 4.1.1. For diesel, its import
volumes also decreased but by 2.71 percent between the very same months
September-October and I had also noted that there was no illuminating paraffin
fuel imported during the same period. In October to November petrol, diesel and
paraffin import volumes drastically hiked by 0.585, 11.41 and 19.83 percent
respectively. The primary reason for such increase was due to decrease in fuel oil
prices in Swaziland effected on the eve of September 04, 2015 as reflected from the
unit rate slate in Appendix A; the petrol, diesel and paraffin pump prices declined
by 40,75 and 75 cents/Litre respectively. Also worth stating is that towards year
end 2015, national fuel demand increased. Based from my observation and data
analysis I made, amongst the fuel oil companies in Swaziland, Galp Energia has
the biggest market shared in import volumes; it is the largest importer and even by
depot storage capacity the biggest; between September and December it imported
38626.593 Kilo-Litres, which amounts to 36% percent import share. Figure 4.1.2
and Table 4.2.3 sets out the market shares for the fuel oil companies‟ importers
into the country. Total follows being the second highest importer contributed 25
percent, third being Puma with 20 percent and last but not least Engen marginally
close with 19 percent the fourth importer.
209135832 Page 23
6 Conclusion
It is apparent that there is competition in the fuel oil industry in Swaziland as a
result some of the fuel oil companies try means of evading Government fuel taxes.
Some of the trucks illegitimately allegedly get their way into the country through
the various border gates. The depots storage is of old age design and operational
processes, and is lacking most of the new technical construction designs for the
equipment and ancillaries. To address this issue I had gathered from some of the
Depot Managers that a gradual upgrade is being conducted to meet International
Standards for depot processes and equipment designs. A vapour recovering system
and up to standard volume measuring techniques are some of the lacking facilities.
There are contributing factors for the fuel oil import variances and some of them I
had studied are;
International Petroleum Product Prices
These are dependent on the supply and demand balance of fuel in international
markets; over the past few years increasing demand has put intense pressure
on available fuel supplies worldwide and in particular here in Swaziland.
The Currency Ratio of Lilangeni Vs.US Dollar Exchange Rate.
It is a major factor influencing fuel prices and hence import rate, since crude oil
is internationally traded in US dollars, the Lilangeni/Dollar exchange rate affect
how many Emalangeni is needed to buy for a barrel of crude fuel oil. Over the
past months from September 2015, the Lilangeni has depreciated against the
Dollar, which means that, it actually now costs more Emalangeni to buy the
same amount of fuel oil. This has been a barrier in fuel oil companies‟ fuel
importation into the country. This factor also affected fuel prices locally.
Local National Events
Local traditional national events and ceremonies such as: Incwala, Umhlanga
Reed Dance and Buganu also affected fuel importation and fuel pricing; since
the State forks out more transportation fuel budget for the nation to support
such sacred events.
As part of fulfilling the Ministry‟s mandate to inspect and randomly take fuel
samples, I had discovered upon fuel laboratory tests that, some of the fuel does not
meet the standards for fuel products: diesel and petrol. Possible reasons could be
sourced from fuel contamination during distribution, handling and poor tank
maintenance locally at the fuel oil companies‟ storage depot and from various filling
station and distribution sites. However not rule out that it could be also possible
that some of the fuel comes already contaminated from the fuel oil refineries and
terminals in South Africa and Mozambique.
209135832 Page 24
7 Recommendations
The depot storage there is a need arises to improve measuring methods for fuel.
New technologies need to be adopted including electronic, float and hydrostatic
gauges, sight or visual gauges and dip sticks.
High level indicator on the tank gauging system must be installed.
Regime Inspection must be designed and implemented for testing and
maintenance to ensure that the new volume measuring system are operated as
designed when required for leak, overfilling and spill prevention and monitoring
systems should be built in new tanks.
The depot for strict security measures in place, including: a security fences and
security entrance control; a high voltage electric fence, where it is deemed
necessary; manned security and CCTV; and anti-theft systems built into the
leak detection system.
In addition to the dipping volume measuring methods, use of overfill prevention
also has to be implemented, devices to safeguard against spills. These can be
electronic and mechanical which sound an alarm and/or give a visual warning
or automatically stop the fuel oil delivery into the tank.
The Ministry in liaison with local environmental authority and relevant
regulation entities must scrutinise and enforce legal requirements with regards
to the aforementioned recommendations and on tanks construction, and
designs.
For fuel quality purposes the fuel storage depot must have fuel testing
laboratories, fit for the use towards adherence and conformance to the quality
standards of fuel importation into the country.
Through the on-going the Ministry and Swaziland Standards Authority (SWSA)
implementation of ISO 17020 (Inspection Standard), it is recommended to
conduct a gap analysis to remedy the illegal importation of fuel into the country
by some of the fuel oil companies.
209135832 Page 25
8 References
8.1.1 Mr Gama Mtaliyane- Depot operator.
8.1.2 Mr Mkhonta Mfanbela- Puma Depot Manager.
8.1.3 Bunding, South Australian Environment Protection Authority (2012).
Available from: https://en.wikipedia.org/wiki/Bunding Accessed on: 29
February 2016.
8.1.4 Scottish Environment Protection Authority (2011) Available from:
https://www.gov.uk/government/uploads/system/uploads/attachment_dat
a/file/485213/pmho0811bucr-e-e.pdf Viewed on: 24 February 2016.
8.1.5 Stefan J.R. Simons (2007). Concepts of Chemical Engineering 4 Chemists, p.
342, RSC Publishing, ISBN-13:978-0-85404-951-6
8.1.6 Notes set from R Singh from Valves, OPERATIONS TRAINING
PROGRAM, EQUIPMENT OPERATIONS, NUS p.1-9, Training
Corporation, 1989. Revised: January 2007 Mgrs. C Brink
8.1.7 Notes set from Old EHCAY 3C notes and Pumps 1, P 8-11,
OPERATIONS TRAINING PROGRAM, EQUIPMENT OPERATIONS,
NUS Training Corporation, (1987). Revised: August 2005 Mgrs. C
Brink
8.1.8 Engen, Dipping, Loading and Offloading Procedures (2016)
8.1.9 Engen Spill Procedures (2016)
8.1.10 Tests Procedures. (2016)
209135832 Page 26
9 GLOSSARRY
Vent pipe - This allows fuel oil vapour and air to escape from the tank when it is being filled and allows air in when fuel is being drawn off. Ancillary equipment - These are the fittings and pipework that all tanks will have, e.g. a vent pipe, but others may be needed according to the tank type, location or use. Additive- Means a substance intentionally added to a petroleum product in trace or small quantities in order to improve one or more of the petroleum product‟s performance or storage stability, its performance in an engine, or a reduction of the emissions from an engine powered by that petroleum product.
Blend- Means a mixture of two or more compatible petroleum products having different properties in order to produce an intermediate or final petroleum product with desired attributes. End-consumer- Means a person acquiring a petroleum product for own consumption. LRP 95 - Means lead replacement petrol, which is metal-containing unleaded
petrol sold as a replacement for leaded petrol.
ULP 95- Unleaded petrol: means petrol containing metal-based additives, other than lead, but including phosphorus with a RON of 95. Oil Refinery - Is an industrial process plant where crude oil is processed and refined into more useful products such as petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas. Depot – Is an industrial facility for the storage of oil and/or petroleum products and from which these products are usually transported to end users or further storage facilities. Terminal – Is an industrial facility sometimes called a depot, used for the storage of oil and/or petroleum products and from which these products are usually transported to end users or further storage facilities. Cavitation- It is the formation of bubbles in a liquid, typically by the movement of a propeller through it.
Bund wall- It is wall surrounding an industrial fuel tank, for spill containment purposes. Pump Price - It is a price paid by car users for fuel at the local fuel filling stations. Unit Rate Slate - Shows the average market cost of fuel in that month and contrasts it with the pump price of fuel set at that month
209135832 Page 27
10 Appendix A (Extras) September 2015, Unit Rate Slate
Table 10.1 September, 2015 Unit Rate Slate
Mogas Mogas Gasoil Gasoil Illum
Items to INPUT 95 LRP 95 ULP 0.05% S 0.005% S Para.
Exchange Rate (Average month $/R) 13.6156
Std Bank Prime Average for month 9.500
Avg. Worldscale Freight - USc/mt. 2432.000 2432.000 2346.000 2346.000 2346.000
Demurrage $ per ton per day 0.217
AFRA - MR vessel rate +15% 180.435
Avg. FOB $Bbl 62.751 62.751 59.902 60.622 58.884
Cargo Dues: @ NPA Tariff 2.904 c/l 2.904
Coastal Storage 4.562
Insurance % 0.1500 0.1500 0.1500 0.1500 0.1500 0.1500
0
2nd Period from
04-September-2015
to Mogas Mogas Gasoil Gasoil Illum
End of Accounting Month 95 LRP 95 ULP 0.05% S 0.005% S Para.
INPUT
Standard Densities 0.750 0.750 0.840 0.840 0.795
Conversion Factors 3.8038 3.8038 3.7991 3.7991 3.8011
Exchange rate (Avg mth $/R) 13.6156 13.6156 13.6156 13.6156 13.6156
Std Bank Prime Average for month 9.500 9.500 9.500 9.500 9.500
Avg. Worldscale Freight USc/mt. 2432.000 2432.000 2346.000 2346.000 2346.000
Demurrage @ $0.217 /ton/day for 3 day period - USc/mt 65.100 65.100 65.100 65.100 65.100
Worldscale plus demurrage 2497.100 2497.100 2411.100 2411.100 2411.100
AFRA - MR vessel rate + 15% 180.435 180.435 180.435 180.435 180.435
Avg. FOB - USc/USg ($Bbl /42=USc/US gal.) 149.407 149.407 142.624 144.338 140.200
Avg. FOB $Bbl 62.751 62.751 59.902 60.622 58.884
Basic Fuel Price Calculation
F.O.B.-Swaziland cents/litre 534.799 534.799 511.150 517.294 502.199
Freight plus demurrage 46.010 46.010 49.757 49.757 47.091
Insurance: 0.15% of FOB + Freight 0.871 0.871 0.841 0.851 0.824
C.I.F. 581.680 581.680 561.748 567.902 550.114
Ocean Leakage: 0.3% of CIF 1.745 1.745 1.685 1.704 1.650
Cargo Dues: @ NPA Tariff 2.904 c/l 2.904 2.904 2.904 2.904 2.904
Landed Cost at Durban 586.329 586.329 566.337 572.510 554.668
Coastal Storage 4.562 4.562 4.562 4.562 4.562
Coastal Stock Financing Cost 3.012 3.012 2.909 2.941 2.849
Basic Fuels Price at Durban 593.903 593.903 573.808 580.013 562.079
Railage Durban/Matsapa c/litre 38.510 38.510 38.510 38.510 38.510
IMPORT PARITY MATSAPA 632.413 632.413 612.318 618.523 600.589
Slate Calculation
Pump Prices 1135.000 1130.000 1120.000 1125.000 745.000
Less: Dealers Margin 83.000 83.000 83.000 83.000 83.000
Wholesale selling price 1052.000 1047.000 1037.000 1042.000 662.000
Customs Duty (a) 0.091 0.091 0.183 0.183
Excise Duty (b) 3.909 3.909 3.817 3.817
Less: - Total Customs & Excise Duty (a+b) 4.000 4.000 4.000 4.000 0.000
- Fuel Tax (Impost) 220.000 220.000 220.000 220.000
- Fuel Oil Levy (Impost) 70.000 70.000 70.000 70.000
- Depot Storage & Handling 6.600 6.600 6.600 6.600 6.600
- Road Delivery 12.030 12.030 12.030 12.030 12.030
- Import Parity Matsapa ( as above) 632.413 632.413 612.318 618.523 600.589
- Industry Margins 64.000 64.000 64.000 66.000 64.000
- MVA 35.000 35.000 35.000 35.000 0.000
Unit Over/(Under) Recovery c/litre (BFP Basis) 7.957 2.957 13.052 9.847 (21.219)
Mogas Mogas Gasoil Gasoil Illum
95 LRP 95 ULP 0.05% S 0.005% S Para.
Industry BFP Unit Rate Slate - SWAZILAND
September-2015