-
InspIrIng solutIons for the oIl, gas & ChemICals seCtor that
go on anD on anD on…
spIreD solutIons In the DIverse ogC busIness seCtor
The QuarTerly NewsleTTer from sGs’s oil, Gas & ChemiCals
BusiNess N° 5 • NovemBer 2011
ContentskeepIng safe In the presenCe
of hyDrogen sulphIDe 2
traDe alerts helpIng you
aDapt to Change 3
marIne seCtor:
managIng ghg emIssIons
anD Costs In shIppIng 5
workIng 24/7 to meet DemanD
thane laboratory In mumbaI 8
testIng marIne fuel
CompatIbIlIty
onboarD your vessels 9
CloseD samplIng proCesses
that work harDer 10
the ChallengIng task:
reDuCIng Cost anD
maxImIsIng returns 12
monItorIng methanol 14
ogC In the Investor Days 15
Carole streng
Project management
[email protected]
In the Oil, Gas and Chemicals sector SGS already has a
comprehensive service portfolio to meet a wide-range of testing,
inspection and certification requirements. We are regarded as the
market leader in providing these services, however, we cannot
afford to become complacent.
Today SGS is proactively observing the OGC sector and seeking
greater diversification to expand the scope of our services. We are
focused on high-end segments (e.g. data analysis and trending) and
in creating new service bundles, which bring together our technical
expertise across all industries.
For you this means access to turnkey solutions and to simplified
answers for all your questions – wherever they are located in the
SGS network of services.
Our InspIratIon has not changed. Yet our DIversIfICatIon is
helping us provide the Oil, Gas and Chemicals industry with
services and solutions that go on & on & on...
In this newsletter we begin with revisiting the dangers from
hydrogen sulphide. Understanding of this gas is not what it was a
generation ago and with regulations tightening on H2S issues we
dispel some myths, and replace them with real facts.
Staying informed with SGS Trade Alerts to keep pace with the
many changes in the OGC business sector is the focus of our next
article. Then we move to new approaches in the marine sector and
how the Energy Efficiency Operational Indicator (EEOI) helps you
manage GHG emissions in your fleet; why the SGS IFO Stability
Testing Kit for bunker fuel acts as an early warning system when
refueling;
and the success of our recent partnership with BP Oil
International into research with the new UKS&G closed sampling
equipment, at drawing samples equal to open hatch sampling.
We travel to India and bring you inside our state-of-the-art
testing facility at Thane, Mumbai, and explain the management and
customer-focus changes from implementing a continuous improvement
initiative. Then we focus on two ways you can perform tests onsite
and receive fast, reliable, independent and accurate findings – the
SGS MIC (Methanol in Crude Kit) for the monitoring of methanol and
the SGS fixed lab network with remote laboratory access for used
oil and lubricant analysis.
We end the newsletter with a look back at the Investor Days
recently held in Toronto and how SGS further consolidated its
‘superior positioning within an extremely attractive industry’
(Deutsche Bank).
Your feedback is always welcomed and with it we aim to deliver
you an enhanced and improved service. Please feel free to contact
your local OGC representative or email us at [email protected]
alIm saIDovExecutive Vice President,
Oil, Gas & Chemicals Services
[email protected]
4
DDEDICATION
9.01225
E10.811
EVALUATION
9
I18.998
IDENTIFICATION
9
I18.998
INNOVATION
14
N92.906
NAVIGATION
16
P32.065
PROFITISATION
18
R39.948
REALISATION
19
S39.098
SOLUTION
9
I18.998
INFORMATION
14
N28.086
NOTIFICATION
-
8
H15.999
HARMONISATION
19
S39.098
SOLUTION2
keepIng safe In the presenCe of yDrogen ulphIDeKnowledge is more
than just
power. Knowledge can keep
us safe. Taking safety related
decisions based on little
understood information is a big
risk. When the right information
can save lives, as it can when it
comes to the facts about Hydrogen
Sulphide, it is crucial that it is only
from the correct information that
safety measures are made.
hyDrogen sulphIDe In CruDe oIl
Hydrogen sulphide, or the chemical compound with the formula
H2S, is a colourless, very poisonous, flammable gas. Its
characteristic rotten-egg odour is perceptible at concentrations as
low as 0.00047 parts per million (470 parts per trillion).
Hydrogen sulphide is present in most crude oils at some
concentration. If the concentration is low (defined as below 2 ppm
in the liquid phase), the crude is usually referred to as sweet. If
it is higher, the crude is said to be sour.
The easy-to-reach sweet crude reserves are being exhausted. As
wells are squeezed dry, more and more sour crude is entering
day-to-day refining. Although some hydrogen sulphide and mercaptans
are removed in the refining process, some remnants do find their
way into the residual black oil fractions. As a result, we are
seeing a general rise in H2S levels in bunkers, fuel oils, VGO,
atmospheric residue and similar bottom end fractions and blends.
This unfortunately increases the daily hazards for those working in
the industry.
beIng aware of the Issue
People are killed by H2S every month, and it leaves others sick
or struggling with very serious long-term health problems. With an
outcome such as this, hydrogen sulphide cannot be treated as an
abstract potential threat.
Regulation has tightened up on H2S issues, and everyone involved
in the oil trade needs to be fully aware of the inherent dangers of
working with liquids containing H2S. This includes every party from
E&P staff to refiners and from storage companies to traders. As
well as being aware of the dangers, it is important to understand
the H2S-related regulations and legislation that are now in place
and how to assess and manage them.
the DeClIne of safety
With the generational turnover in staff in the older developed
centres, and the increase in frequency of sour cargos, the working
population needs more awareness about the dangers of hydrogen
sulphide than they did ten or fifteen years ago. The current lack
of awareness means the risk level of working with H2S is
skyrocketing, leaving many workers depending on false information,
which could end up costing them their lives.
myths about hyDrogen sulfIDe
The number of common misconceptions surrounding H2S is
astounding. Here are a few, with explanations of what is really the
truth:
Myth 1
You can calculate the H2S level in the liquid phase from the
concentration measured in the vapour phase, and vice versa.
This is impossible. The number of variables that can change from
the liquid to the vapour phase means that there is no way to
calculate the H2S level in one from the other. These variables
include such things as: headspace size and temperature; surface to
volume ratio of the liquid; liquid viscosity and temperature; the
partial pressures of other species present in both the liquid and
the headspace; moisture content of the headspace; and headspace gas
throughput.
Myth 2
If you measure the concentration on the headspace at one point
in time, it will remain constant or near constant.
This is not the case. Small changes in temperature, slight
agitation or a host of other factors can change the headspace
concentrations dramatically in only a fraction of an hour.
Myth 3
You can transport samples and still obtain reliable results for
H2S content.
There are numerous transport situations that potentially affect
the H2S content. All of the published methods make it clear that
analysis must be carried out within a very short space of time (no
more than 24 hours) and that the sample must be kept at sea level
or very close. It cannot be heated or shaken. This makes air
transport in particular extremely hazardous.
Myth 4
Readings in the headspace on the vapour give the same
concentration as the analysis of the liquid beneath.
8
H15.999
HARMONISATION
19
S39.098
SOLUTION
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BusiNess N° 5 • NovemBer 2011 P. 2
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19
S39.098
SOLUTION
Typically, this is not the case. A liquid concentration of, for
example, 8 ppm in the liquid phase, depending on other factors,
might give rise to a vapour phase concentration of anything from
about 150 ppm to 25,000 ppm in the headspace above.
ControllIng hazarDs
Preventative measures can, and must, be taken to prevent
hydrogen sulphide related problems.
1. Safety Data Sheets (SDS) must
be provided
All cargos where H2S is known to be in the oil, including crude,
must, by international convention be
accompanied by safety data sheets. This is also a requirement of
the more recent MARPOL and regional legislation such as REACH and
NICNAS. The safety data sheets must reflect the situation and warn
fully about the hazards present. It is an offence to instruct
anyone (e.g. storage terminals, ships, inspectors, pipeline
operators, etc.) to place staff in proximity to cargo that may
contain H2S without providing safety data sheets to make the nature
of the hazard explicit.
2. Tri-Mode personal monitors and
breathing equipment should be available
Also, all people who may be working in an area where H2S
exposure is possible should be equipped with
tri-mode personal monitors which measure H2S, O2, and LEL levels
at near mouth height. They should also be equipped with breathing
apparatus appropriate to the situation.
H2S can be tested a number of ways, but the quickest, most
reliable method in use is IP 590 for liquid phase measurements. By
becoming aware of the level of sour oil you are working with, you
can ensure that you and your employees take the appropriate steps
to keep safe.
For more information, please contact
Richard Taylor at [email protected]
traDe alerts helpIng you aDapt to Change
The pace and degree of
development within the oil, gas
and chemicals industry is greater
than ever. Regular updates, such
as Trade Alerts, are one way we
can all stay on top of the industry.
The world, and the OGC business, has changed enormously over the
past few decades, more than anyone could have anticipated. This,
naturally, has left many companies confused. There are a number of
factors that have combined to effect the changes we’ve seen, such
as the retirement of industry leaders, increasingly demanding trade
regulations, more advanced technology, shifts in the types of
companies that prosper, and more international business. Here we
discuss some of these factors.
generatIonal Changes
We are in the latter stages of a generational shift in staff.
This applies to every business within the industry. Staff who
joined in the ‘70s are retiring. As energy was an unfashionable
career choice in the ‘80s and ‘90s, recruitment was low in those
years. This led to a demographic hollow in the industry, which, at
a time of great change, poses a real threat to efficient, safe and
profitable operations. Although these new operators may be less
technical they are more in tune with business processes and
commercial finance and as a result those in the industry are
increasingly becoming more efficient, more frugal, and more
cost-conscious.
tIghtenIng traDe regulatIons
Trade regulation is on the increase, and certain aspects in
particular have skyrocketed, particularly those connected to
environmental issues (e.g. sulphur levels in fuels, mercury
content, heavy
metals content and NOX and SOX emissions). The advent of schemes
such as NICNAS and REACH the CLP/GHS global alignment, pose serious
challenges to an industry already in need of help.
InCreaseD equIpment optIons
Technology has advanced by leaps and bounds, meaning testing can
now be done using equipment that couldn’t have been imagined twenty
years ago. Cheap PC power in particular has enabled techniques such
as GCMS and FTIR to move out of the research lab and into the
field. Although this makes them more convenient and even
semi-portable, it has also fragmented the installed base of test
capabilities.
the latest leaps forwarD
In oIl teChnology
Similarly, product innovation has changed the industry. With new
refining techniques, the introduction of
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BusiNess N° 5 • NovemBer 2011 P. 3
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alternative fuels such as GTL and CTL fuels, and the advent of
first and second generation biofuels, the blending pools have
become ever more complex.
the neeD to aDapt In
the faCe of Change
Some companies leave themselves unnecessarily exposed due to
their lack of knowledge in technical matters. The need for
specialised expertise on test methods and specifications has
increased, which in some cases leaves a significant and important
knowledge gap in house.
DIfferent CompanIes take Charge
The industry has changed significantly in that different types
of company have risen and fallen. The new industry leaders are:
NOCS (National Oil Corporations), such as Aramos, KPC, NNPC,
Petronas, Petrobras; Tolling refiners, like Valero, Tesoro, and
Petroplus INEOS; and technology providers and marketers, such as
Dow, Shell Global Solutions, and Nexant. However, small and
mid-sized traders
and wholesalers have struggled to survive in the credit
crunch.
With vertically integrated oil companies retreating from their
silo style operations, trade flows towards either end of those
silos. The trade flows for crude, products and petrochemicals are
in radical transition. Cargos are larger, go further and enter new
markets every day.
growIng InternatIonal
InfluenCes
Globalisation and international trade could also explain
industry shifts. Europe is now a diesel road fuel economy, whereas
North America remains a gasoline market. China is growing at a
phenomenal rate in demand terms, with the rest of Asia not far
behind. Local added value plants in the Middle East and Asia have
increased. Korean refined distillate is a more significant element
of Med supply than would have been thought possible, let alone
usual a few years ago. Radical thinking is needed to support this
industry in these areas.
what we Can Do to help
SGS OGC Trade Alerts hope to address these industry changes and
help fill the gaps in expertise. These Alerts are two or three-page
summaries, which draw attention to items of interest within the
trade. These range from new specifications for jet fuel,
interesting court cases, environmental regulation on bunker fuels,
import requirements such as REACH, or any other development that
might expose our customers to unknown or changed risk.
Our trade alerts are issued as open, public domain documents,
which draw out the key points for the concerned non-technical
person. We hope that they prompt reviews, discussions, and updates
as appropriate. The general reaction to our Trade Alerts has been
positive and we hope to continue to support our customers with this
service in the future.
For more information, please contact
Richard Taylor at [email protected]
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BusiNess N° 5 • NovemBer 2011 P. 4
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marIne seCtor:
International maritime transport
carried 90% of world trade in
2007, yet only contributed 2.7%
of global CO2 emissions making it
the most energy efficient method
of global mass transport. The
maritime sector is expected to
experience significant growth
for the future and even with
its enviable record on GHG
emissions, the International
Maritime Organisation (IMO), as a
part of its greenhouse gas study
in 2009, estimates that reductions
of between 10% and 50% in CO2
emissions can be achieved solely
through operational measures.
the energy effICIenCy operatIonal
InDICator (eeoI)
To assist ship owners and ship operators in reducing and
monitoring GHG emissions the IMO has developed the Energy
Efficiency Operational Indicator (EEOI), to establish a consistent
approach for measuring energy efficiency on each voyage (or over a
certain period of time) and to provide a benchmark for the
operational performance evaluation of the ship or fleet.
the eeoI CalCulatIon anD Coverage
The Energy Efficiency Operational Indicator (EEOI) is expressed
in grams of CO2 per tonne-mile and the formula allows comparison
between individual ships. The formula for calculating EEOI is shown
here:
aCtual fuel ConsumptIon InDex
=
fuel ConsumptIon In operatIon
÷
(Cargo onboarD × DIstanCe
travelleD)
The EEOI can be applied to almost all ships (new and existing),
including passenger ships, however it cannot be applied to ships
that are not engaged in transport work (e.g. service, research
vessels, tug boats or FPSO) as it is the transport work that is the
input value together with emissions (fuel consumed).
This formula provides operators and crews an objective way to
monitor the effectiveness of any new measures applied in accordance
with the Ship Energy Efficiency Management Plan (SEEMP).
In the SEEMP, measures include:
• Onboard Management Tool
> Improved voyage planning
> Speed and power optimisation
> Optimised ship handling
> Improved fleet management
> Improved cargo handling
> Onboard energy management
• Guidance on Best Practices
> Slower steaming
> Faster turnaround
> Special hull paints
> Heat recovery systems
the eeoI formula
The Energy Efficiency Operational Indicator (EEOI) is a simple
formula that has become the benchmark indicator of
energy-efficiency in marine transport vessels. The EEOI was a
response to a 2009 study by the International Maritime Organisation
(IMO), who determined that marine vessels could be running more
efficiently and consuming less fuel, while producing less
greenhouse gas. The EEOI was developed as a result of the adoption
of the Energy Efficiency Design Index (EEDI), which set technical
standards for improving the energy efficiency of certain categories
of new ships, which will also lead to a reduction in CO2 emissions
– approximately 25-30% reductions by 2030.
The QuarTerly NewsleTTer from sGs’s oil, Gas & ChemiCals
BusiNess N° 5 • NovemBer 2011 P. 5
managIng ghg emIssIons Costs In shIppInanD
7
G14.007
GENERATION
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The QuarTerly NewsleTTer from sGs’s oil, Gas & ChemiCals
BusiNess N° 5 • NovemBer 2011 P. 6
DesIgn (new shIps)savIng of Co2 tonne-mIle CombIneD CombIneD
Concept, speed and capability 2% to 50%*
10% to 50%*
25% to 75%*
Hull and superstructure 2% to 50%
Power and propulsion systems 5% to 15%
Low-carbon fuels 5% to 15%**
Renewable energy 1% to 10%
Exhaust gas CO2 reduction 0%
operatIon (all shIps)
Fleet management, logistics and incentives
5% to 50%*10% to 50%*Voyage optimization 1% to 10%
Energy management 1% to 10%
* Reductions at this level would require reductions of
operational speed. ** CO2 equivalent, based on the use of LNG
Source: Second IMO GHG Study 2009
Potential reductions of CO2 emissions by using existing
technology and practices
CalCulatIng the eeoI value
A smaller EEOI value means a more energy efficient ship.
The basic expression for EEOI for a voyage is defined as:
equatIon 1 EEOI = Σj FCj x CFJ / mcargo x D
equatIon 2 Average EEOI =
Σj Σj (FCij x CFJ) / Σi (mcargo,i x D i)
(NB: Equation 2 does not give a simple average of EEOI among
number of voyage i)
Where:
• j is the fuel type
• i is the voyage number
• FCi j is the mass of consumed fuel j at voyage i
• CFj is the fuel mass to CO2 mass conversion factor for fuel
j
• mcargo is cargo carried (tonnes) or work done (number of TEU
or passengers) or gross tonnes for passenger ships
• D is the distance in nautical miles corresponding to the cargo
carried or work done
The unit of EEOI depends on the measurement of cargo carried or
work done (e.g., tonnes):
• CO2/(tonnes • nautical miles)
• Tonnes CO2/(TEU • nautical miles)
• Tonnes CO2/(person • nautical miles)
sgs solutIons for eeoI
ImplementatIon
Although the calculation of the EEOI is fairly straightforward,
making changes based on the results can be difficult. Some of the
more effective measures are better fleet energy management and
voyage optimisation; and changes in operations, such as the
introduction of just in time planning or weather routing
systems.
SGS specialises in assisting organisations in implementing
energy control measures and we utilise EEOI so that you receive
monitoring of the operational performance of an individual ship or
an entire fleet. We advise on emissions measures, such as
low-carbon fuel use or changing to renewable energy sources, and
provide factual evidence through EEOI calculations.
SGS experts can also help you take full advantage during the
design and testing of any future vessels you have planned – which
will need to incorporate the new Energy Efficiency Design Index
(EEDI) – in order to maximise the various design parameters for new
vessels to include the best energy efficiency technologies.
SGS is on hand to help, making change processes as simple as
possible and ensuring all benefits are maximised as a result.
For more information, please contact
David Springett at [email protected]
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workIng 24/7 to meet emanD thane laboratory In mumbaI
Since 1997, SGS India has operated
a petroleum and chemicals
laboratory at Thane (Mumbai).
Over recent years we have
responded to market demands in
the region by introducing state-of-
the-art technologies and software
packages to meet the growing
needs of our customers. The result?
Our laboratory has recently been
operating 24 hours a day to keep up
with the demand for its services.
Our investment in technologies and
personnel at the Thane laboratory
has enabled our team to deliver
the analytical services needed by
organisations in India.
state-of-the-art teChnologIes
With customers requiring an ever-growing list of laboratory
testing solutions, SGS India has installed state-of-the-art
software packages and developed a team of highly trained experts.
This investment means that customers such as SUZLON Wind Energy,
Mercedes Benz, General Motors, Diamler, SeaTech, Petronas,
ExxonMobil, Bharat Petroleum, Rohm & Haas and Philips Carbon
can now benefit from around the clock access to the most up-to-date
testing facilities in the region. SGS’ accreditations by the
National Accreditation Board for Testing and Calibration
Laboratories (NABL), and by the “Indian Register of Shipping”
reassure customers that all results from our fully equipped
laboratory are without doubt reliable and the usual high standards
expected from SGS. Our testing here includes:
• CCLAS Systems
• SOFIA Systems
• ICP-OES
• FTIR
• Trace Sulphur Analysers
• XRF
• PIONA
• Low-OX
• Auto Distillation
• Particle Counters
• BDV & Auto Viscometer
testIng programs for
the ogC InDustry
SGS’ Thane laboratory offers customers three different testing
programs to cover the widest range of OGC testing requirements.
Petroleum Testing
Petroleum product testing includes:
• Naphtha
• Reformate/ Pygas
• Lubricating Oil
• Natural Gas/ LNG/LPG
• Gasoline
• Diesel
• Aviation fuel
• Asphalt and Biodiesel & Bunker Fuels
Additive blending for various types of additives to improve or
correct the quality of the cargo or product includes:
• Bacterial contamination
• Cloud Point / CFPP improver & pour point
Used Oil Testing
Used oil testing includes:
• Physical and chemical characteristics of used lubricating oil
to yield information on the wear of metals and oil
• Ferrography analysis
• Sampling with easy-to-use kits including return postage
• Oil Condition Monitoring with expert diagnosis and
interpretation of results and their relationship
Petrochemicals Testing
Testing on chemical products includes:
• Acetates
• Alcohols
• Ethers
• Gases
• Glycols
• Hydrocarbon solvents and ketones
4
DDETERMINATION
9.0122
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The QuarTerly NewsleTTer from sGs’s oil, Gas & ChemiCals
BusiNess N° 5 • NovemBer 2011 P. 9
Ships, which operate on different grades of Marine Bunker Fuel
Oil depending on their engine type, need to take fuel onboard from
various locations and suppliers around the globe. This opens them
up to the risks associated with incompatible fuels. When one of our
customers came to us for help in overcoming this problem, we
devised a simple testing kit that we could train their employees to
use onboard ship as an early warning system, highlighting any
potential incompatibility or impurity issues. Known as the SGS
Onboard IFO Stability Testing Kit, our solution is now available to
all our customers and provides a quick and easy fuel
assessment.
avoIDIng the Issues assoCIateD
wIth InCompatIble fuels
Although fuel comes with a specification, testing gives you more
information about whether it is compatible with your existing
stock. Early testing prevents you from taking
incompatible fuel into a vessel’s bunker tanks. If mixing does
occur extracting or separating the resultant unstable split fuel is
more difficult. Suspect tanks need to be unloaded, which also
leaves you with the expense of disposal while purchasing
replacement. You can manage the risk, protect your profits and
limit costs by testing a fuel before accepting it onto your
vessels.
the astm D4740 CleanlIness anD
CompatIbIlIty stanDarD
Our Onboard IFO Stability Test Kit gives you all the information
the ASTM D4740 Cleanliness and Compatibility Standard delivers,
onboard your vessels wherever they are in the world. These results
provide guidance as to the compatibility of fuel oils and their
suitability for your engines, helping your fleet run smoothly.
The results of this early-warning system are simple to
understand. After a sample has been taken and analysed for both
cleanliness and compatibility, the reference spot sheet is used to
give two accurate spot ratings, providing separate results for
cleanliness and compatibility. In each case a spot rating of three
or higher indicates a potential issue with the fuel and acts as a
warning that it should not be taken onboard without further
testing.
traInIng to use the sgs onboarD
Ifo stabIlIty test kIt
The SGS Onboard IFO Stability tests are simple and the equipment
is small, so the procedure can easily be taught anywhere. During
the one-day training course we offer an SGS technician to
demonstrate the test method. When all attendees are familiar with
the concept, they carry out the test themselves several times to
get an overall feel for the test and to develop an understanding of
how to interpret the results obtained.
The ease and portability of the IFO Stability Test makes it an
invaluable onboard analysis tool, and its one and a half hour
turnaround time for results means your vessels can be filled
quickly with clean and compatible fuel. If further laboratory
assessment is needed, SGS is able to provide you with these
analyses and answers.
The SGS Onboard IFO Stability Test helps you manage a
successful, profitable marine fleet by avoiding breakdown and
saving time and money.
For more information, please contact
Steve Aylieff at [email protected]
testIng marIne fuel CompatIbIlIty nboarD your essels
15
O30.974
OPTIMISATION
22
VALIDATION
V47.867
ContInuous Improvement
InItIatIve at thane laboratory
As part of the on-going development of the Thane Laboratory,
improving management techniques and leadership has always been a
priority and a continuous improvement initiative has been put in
place to achieve this. All SGS employees have been educated in
LEAN and 5S project methodologies. As a result, we have been
able to improve management efficiency and customer-focused
thinking.
As demand for our services has grown at a rate previously unseen
by our laboratories in the region our expert employees have, with
the new skills learnt, been able to answer this
increase in demand. Operations have been streamlined and our
24-hour service ensures we can meet our customers’ analytical
requirements around the clock.
For more information, please contact
Scott Wythe at [email protected]
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The QuarTerly NewsleTTer from sGs’s oil, Gas & ChemiCals
BusiNess N° 5 • NovemBer 2011 P. 10
SGS OGC, in partnership with
BP Oil International, recently
began research into sampling
through closed loading valves
with the new UKS&G equipment.
BP approached SGS – who had
already demonstrated its expertise
in sampling low-viscosity, clean
products, such as gasoline or
gasoil – for a solution to the
difficulties of sampling high
viscosity, badly stratified, products
such as fuel oil cargos blended on
ship from a number of individual
source tanks.
the neeD for hIgh
qualIty samplIng
Drawing high quality, representative samples, which meet the
stringent requirements of the standards bodies has always been one
of the biggest challenges facing the OGC industry. With the new
UKS&G closed sampling equipment SGS aim to draw samples equal
to open hatch sampling, and have these samples meet the minimum
standards for API/ASTM/ISO/EI testing.
the neeD for hIgh
qualIty samplIng
In past investigations SGS had proposed various solutions and
obtained promising results. However, a number of factors still
needed to be overcome to make this new venture a success,
including:
• Sample quality
• Ease of use
• Upper viscosity limit
• Portability
• Ease of sample transfer timings
• Operational and equipment limitations
further Challenges
– polICy Changes
One major hurdle is the recent policy changes affecting most
major ship operators. These restrict the sampling of vessel cargo
tanks via open sample hatches and make representative samples even
harder to extract. This limits the ease of sampling very large
non-homogenous cargos, which are becoming more commonplace every
month. Cargos such as these further complicate the sampling
process, as no matter how carefully a lab test is conducted it can
only ever be as representative as the sample it is testing.
loseD samplIng proCesses that work harDer
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loseD samplIng proCesses that work harDer
Specifically, problems occur in:
• Very large cargos of fuel oil, made up from multiple
individual source tanks, each of which has a separate quality and
no mixers
• The move to blend to a given specification on board from
multiple grades of oil, where the success is inherently reliant on
samples being drawn from tanks – before and after the blending
activity – that are representative of the components and the
resultant mix
lImIteD In DrawIng samples
To deal with these issues SGS has been increasingly limited to
drawing samples through a vessels closed system. This has to be
done via the vapour locks, however the equipment from manufacturers
of vapour lock systems was created for measurement and inspection
industry standards, not as equipment designed for sampling.
The issue of fit-for-purpose in current equipment design is the
reason for API MPMS Chapter 17.11/EI HM 52 Measurement and sampling
of cargoes on board tank vessels using closed and restricted
equipment, which states:
“Measurement accuracy and representative sampling are essential
to the sale, purchase and handling of bulk liquids. Accurate
measurements and representative sampling require the use of
standardized equipment and procedures. Government and regulatory
agencies worldwide are imposing safety and environmental
regulations that prohibit tank vessel operations from releasing
hydrocarbons into the atmosphere. This has resulted in the
restriction and, in some cases, the prohibition of traditional
methods of obtaining cargo measurements and samples. Consequently,
methods and technologies are now being developed and used that
allow cargo measurements and samples to be taken with no vapor
release (closed) or with very limited vapor release (restricted).
Shipboard sampling at the load or discharge port is frequently
required to test the quality of the cargo against contract and also
to determine if any cargo quality degradation has occurred during
the shipping process. Shipboard sampling may also be required prior
to cargo acceptance and custody transfer, particularly where
shipboard blending has taken place. It should be noted that when
taking vessel samples it may not be possible to obtain
representative
samples of nonhomogenous cargos due to the inherent nature of
the cargo and the sampling restrictions.”
new researCh at the port
of rotterDam
SGS carried out the research into sampling through closed
loading valves at the Rotterdam Port. A total of six vessels were
included in the testing and wherever it was possible samples were
taken with both open hatch U.M.L and closed sampling equipment. A
comparison was conducted on a tank-by-tank basis of the analysis,
for density, viscosity and sulphur.
results equal to open
hatCh samplIng
On the completion of all testing, the SGS and BP research
collaboration clearly established that the new style closed
sampling equipment from UKS&G is equal in accuracy,
effectiveness, and to the same criteria as open hatch sampling
methods.
For more information, please contact
Robert Collins at [email protected]
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the ChallengIng task: eDuCIng Cost anD maxImIsIng returns
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REALISATION
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BusiNess N° 5 • NovemBer 2011 P. 12
With the need to keep heavy
equipment well maintained, SGS
Used Oil and Lubricant Analysis
offers independent testing
diagnosis and regular monitoring
to maximise the lifecycles of your
lubricants and your machinery.
fast, aCCurate anD InDepenDent
Staying informed of the condition and performance of individual
links in the production chain is essential to avoid the costs of
downtime and failures. With access to a fast, accurate and
independent view of what is happening inside your power generators,
gearboxes, compressors, turbines, transformers, hydraulic systems
and other critical machinery – you can pro-actively extend
productivity and increase profitability of operations.
InDustry anD Customers
SGS provides used oil and lubricant testing to benefit many
different industries and customers, including:
• Transport: marine, road, rail, aviation
• Offshore Oil Industry: rigs, platforms
• Construction: highway construction, major earth moving
• Mining: deep and open cast
• Energy: fossil fuel, nuclear, renewable sources
• Military: army, navy, airforce
• General Industry: utilities, engineering, manufacturing,
process industries and others
onsIte testIng – remote DIagnosIs
Getting access to lubricant testing services where you need them
most – in the field – is one of the biggest challenges in used oil
and lubricant testing. SGS overcomes this in three ways: the option
of a modular remote laboratory with installed capabilities for the
basic analysis on engines, transmission or hydraulic oils; we can
provide you with self-test kits that can be mailed back to our
laboratories network; or we can undertake handling of your sampling
needs onsite.
fIxeD lab network
Once the samples are analysed, SGS expert master mechanics and
mechanical engineers complete an in-depth diagnosis. They take into
consideration the factors relating to your unique operational
environment. Any results are systematically compared to previous
results for your samples and to our database. To complete the
report picture, SGS makes sure to keep close relationships with
customers to arrive at an accurate and true diagnosis of the
condition of the oil and lubricants.
over 20 000 tests, on 1 000 samples,
every Day
SGS laboratories are equipped with modern automation and robotic
systems so you can be sure, even when we report daily on more than
1 000 used lubricant samples, and perform over 20 000 individual
tests, the routine 24-48 hour turnaround time is always met. For
occasional urgent samples we can offer fast track service.
Making use of the latest techniques for analysing lubricating
oils, grease and hydraulic fluids, we test the physical and
chemical characteristics of the oil, and provide information on
both the oil and the wear of metals. This allows the detection of
changes in the concentrations and ensures the earliest warning on
any potential risk of failure. If there appears a risk, SGS
notifies you of the results immediately via phone or fax.
DetaIleD reportIng
An extensive report, detailing a complete history of the samples
and data, from each piece of equipment, allows viewing of the whole
spectrum of statistics. This gives you the opportunity to determine
the root cause for any equipment failures and pro-actively take
precautions if similar data present themselves in related
equipment.
The reporting is available in 12 languages to meet the needs of
a global customer base and our expert diagnosticians answer any
questions you may have if further clarification of the results is
required.
Reports can also be accessed from SGS via email or through our
web-based reporting facility.
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reDuCeD operatIng Costs
SGS Used Oil and Lubricant Analysis provides an independent
solution in helping you maximise production through scheduling
maintenance and downtime, allowing your business to reduce
operating costs and downtime related to equipment failures.
For more information, please contact Rachid Boubetra at
[email protected]
amerICa europe – ame asIa
23 Laboratories in 19 Countries
Projects in 2012
8 laboratories
150 000 samples
9 laboratories
400 000 samples
6 laboratories
110 000 samples
sgs useD oIl laboratorIes anD projeCts
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The monitoring of contaminants
is a top priority in the upstream
industry. Methanol monitoring is
brought onsite using reliable, fast,
and easy-to-use methanol analysis
allowing immediate quantification.
hazarDs of hyDrate formatIon
Recovery of crude oil from deepwater wells can be difficult and
dangerous, particularly when the crude oil contains hydrates.
Hydrates are clathrate compounds that crystallise at the low
temperatures and high pressures characteristic of the ocean floor
environment. If hydrates crystallise in the wellbore, the flow of
the crude oil can be impeded or stopped, resulting in low
production and hazardous conditions on the platform.
methanol Improves flow
assuranCe, but DegraDes
the proDuCt
To inhibit hydrate crystal formation, methanol is artificially
introduced during the early life of a deepwater well or in the case
of a well shut in. The level of methanol present in produced fluids
however can greatly devalue the oil. If there is an excessive
amount of methanol in crude, refineries will greatly undervalue it,
or even reject the purchase.
portable anD aCCurate
methanol analysIs
In order to ensure real-time monitoring, the SGS MIC (Methanol
in Crude) Kit is designed for the onsite quantification of methanol
in produced oilfield fluids. The kit was created to test oil and
produced water samples from oil wells and can be modified to
include the measuring of methanol in produced natural gas. The
analysis takes 30 minutes to perform and can detect methanol to 5
ppm with an accuracy of over 90%. The portability, fast analysis
time, and accuracy of the SGS MIC Kit allow fixed lab-quality
analyses to be brought directly to the field. Our services give
customers the opportunity to isolate crudes containing
high methanol into a separate container where it can be blended
at low levels into the cleaner crude production. This allows a
customer to make real-time decisions before the contamination
affects their production.
the next step In
automateD DeteCtIon
In addition to the SGS MIC Kit, the SGS Upstream Services
Research Team is developing an automated system to perform the
analysis. The system is based on a sequential injection analysis
where samples and reagents are introduced to a device called
Lab-On-Valve (LOV). With precision controlled time events,
different amounts of samples and reagents are delivered by syringe
pumps and mixed together in a reaction holding coil. After reaction
is completed, the products formed in the holding coil are delivered
to a flow through cell connected by fibre optic cables and
real-time data is sent to the computer for processing. The whole
process will be automated and an operator can just load the samples
in the vials and press a start button from the software. This
device is still under development but we expect to roll out the
completed system soon.
sgs aDDresses the Issues wIth
forwarD thInkIng solutIons
Industrial technology moves forward quickly, and our systems are
state-of-the-art. We address real problems in the OGC industry with
viable, efficient solutions, so our customers are never kept
waiting on results.
For more information, please contact
Graham Mullings at
[email protected]
onItorIng methanol
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In the
Investor DaysSGS recently held two well-
received Investor Days in Toronto.
The investor events allowed us to
highlight SGS’ “superior positioning
within an extremely attractive
industry” (Deutsche Bank).
on traCk for the sgs 2014
growth plan
SGS’ focus on moving towards value-added services, such as,
upstream/inland testing and integrated solutions services, with
more cross selling of services to existing customers, means we are
staying on track for our future growth targets. This long-term
strategy, and our global network, positions us to “benefit from (…)
secular trends of outsourcing, globalization and increasing
regulations [and] deliver profitable growth going forward.”
(Deutsche Bank).
On Site, In Action
SGS’ push on upstream, consulting and R&D related services
was further highlighted with visits to flagship facilities at
Lakefield, Mississauga and SGS Oilsands. The site trips
demonstrated first-hand the way in which SGS provides a “complete
mine cycle offering, with the more traditional geochemistry lab
work being complemented by upstream discovery related services and
also full process development services” (Exane).
ogC: new growth vs
traDItIonal servICes
SGS’ strategy of moving up the value chain in all business lines
included identifying new growth areas in the SGS Oil, Gas &
Chemicals division. These
areas include: sample automation; offshore site analysis; lab
staff outsourcing; ARQS; down hole; drilling fluid; shale gas;
biofuels & PVT testing; and metering & calibration. A move
away from labour-intensive, commodity activities, to high-end
professional services, is seen by investors as; “a good way to
support top-line growth and push margins higher, which lends
further credence to the 2014 plan” (Exane).
Plant & Terminal Operations (PTO)
The North American regional VP Brian Haymon elaborated on Plant
and Terminal Operations (PTO), as part of the SGS business line
since the acquisition of US-based Petroleum Services Corporation
(PSC) in 2004. As a fairly recent acquisition, most of the PTO
business still remains in the US and Canada, with sales in 2010
totaling US$160m.
The division is unusual in that it is an operator service,
rather than a testing or inspecting service, and offers skilled
individuals who operate and supervise the transfer of oil and
chemicals at terminals onto water and rail transport.
Specific services include:
• Barge loading and unloading: PSC is the oldest and largest
barge loading and unloading service in the US (loading and
unloading c.36 000 barges p.a.)
• Rail and truck loading and unloading (c.300 000 railcars and
trucks p.a. at more than 50 plant sites)
• Rail switching operations
• Marine dock operations (75 major marine facilities in North
America)
• Warehouse operations (mostly in plastics, fertilisers and
rubber products)
• Tank farm and pipeline operations (pumping) and underground
storage operations (liquefied gases)
Growth Opportunities
Within the OGC division, PTO is the least capital-intensive
business and has “low margin volatility as costs are closely
related to revenue” (Deutsche Bank). New growth for PTO outsourcing
should arise as companies focus on core functions and cost control.
The major expansion projects announced in the US chemicals industry
should present opportunities as companies seek upsourcing. Already,
“SGS has more than doubled its North American PTO business from
USD55m in 2003 to an estimated USD130m in 2011 and targets revenue
of USD170m by 2014” (Deutsche Bank).
posItIve outlook towarDs 2014
The two days in Toronto proved well-received and built on SGS’
reputation for openness and high-level disclosure to investors
ensuring confidence in all business lines. Indeed, SGS is seen as
remaining “best in class” (UBS) in explaining it’s complex and
diverse mix of businesses to the investor community.
For more information, please contact
Carole Streng at [email protected]
15
O30.974
OPERATION
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G14.007
GENERATION
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www.sgs.Com
CONTENTSINSPIRED SOLUTIONS IN THE DIVERSE OGC BUSINESS
SECTORKEEPING SAFE IN THE PRESENCE OF HYDROGEN SULPHIDETRADE ALERTS
HELPING YOU ADAPT TO CHANGEMARINE SECTOR: MANAGING GHG EMISSIONS
AND COSTS IN SHIPPINGWORKING 24/7 TO MEET DEMAND THANE LABORATORY
IN MUMBAITESTING MARINE FUEL COMPTABILITY ONBOARD YOUR
VESSELSCLOSED SAMPLING PROCESSES THAT WORK HARDERTHE CHALLENGING
TASK: REDUCING COST AND MAXIMISING RETURNSMONITORING METHANOLOGC IN
THE INVESTOR DAYS