PEE 5205: Petroleum Transport and Storage

Contents: Transportation of crude oil: pipelines; tankers-loading and unloading techniques.

Offshore loading systems, international regulations on tanker transportation. Custody transfer,
storage of crude oil, tank farm operations-gauging, sampling, quality control; underground
storage-caverns, porous rocks. Gas transportation: compressors, pipelines. Liquefied natural gas
transportation. Storage of natural gas; pressure tanks, re-injection in porous rocks, storage in
caverns. Storage of LNG.

Outline First Section

1. Transportation of crude oil:

- pipelines;
- tankers-loading and unloading techniques.
2. Offshore loading systems, international regulations on tanker transportation. Custody
transfer
3. Storage of crude oil,
- Tank farm operations: -gauging, sampling, quality control;

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 PART 1: TRANSPORTATION OF CRUDE OIL

CHAPTER 1: PIPELINES
1.1 Introduction
Crude oil, petroleum products of natural gas are all moved by:
1- Pipelines; 2- Barges; 3- Tankers; 4- Railway tank cars; and 5- Track
Once oil and gas are located and the well is successfully drilled and completed, the product
must be transported to a facility where it can be produced/treated, stored, processed, refined, or
transferred for eventual sale. The typical system begins at the well flow-control device on the
producing “wing(s)” of the wellhead tree and includes the well “flowline,”
production/treating/storage equipment, custody-transfer measurement equipment, and the
gathering or sales Pipeline.
The piping and pipeline systems typically associated with producing wells include, but are
not limited to, the well flowline, interconnecting equipment piping within the production
“battery,” the gathering or sales pipeline, and the transmission pipeline.

1.2: Classification of pipelines

1. Well Flowline. The well flowline, or simply flowline, is the first “pipeline” system
connected to the wellhead. Flowlines are used as part of a crude gathering system in
production areas to move produced fluids (e.g., oil, gas, and production water) from
individual wells to a central point in the field for treating and storage. Flowlines are
generally small-diameter pipelines operating at relatively low pressure.
2. Interconnecting Piping. Interconnecting piping includes the piping between the various
pieces of production/treating equipment such as production separators, line heaters, oil
heaters, pump units, storage tanks, and gas dehydrators. The piping systems may also
include headers, fuel systems, other utility piping, and pressure-relief/flare systems.
3. Gathering/Sales Pipeline. The pipe that delivers the well production to some
intermediate or terminal location is the gathering or sales pipeline. The gathering pipeline
literally “gathers” the production from producing wells and conveys the production to a
collection system, a processing facility, custody-transfer (sales) point, or other.
4. Transmission Pipeline. The transmission pipeline is a “cross-country” pipeline that is
specifically designed to transport petroleum products long distances. The transmission
pipeline collects the specific petroleum products from many “supply” sources along the
pipeline (such as gathering pipelines) and “delivers” the product to one or more end users.
There are three general categories of transmission pipelines: natural gas, “product,” and
crude oil. Natural-gas transmission pipelines carry only natural gas. Product pipelines may
carry a number of processed or refined petroleum products such as processed natural-gas
liquids (e.g., butane and propane), gasoline, diesel, and refined fuel oils. Crude-oil pipelines

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 convey unrefined crude oil from producing areas to large storage areas or directly to
refineries (Fig.1.1).

Figure 1.1 Uses of offshore pipelines (Guo et ai.,2005)

1.2 PIPELINE OPERATIONS

The three major pipeline operations are: pipeline control, pumping stations and delivery
terminals. Storage, cleaning, communication and shipment are also important functions.

1. Pipeline control: Regardless of the product being transported, the size and length of the
pipeline or the terrain, pipeline pumping stations, pressures and flow rates are
completely controlled in order to ensure appropriate flow rates and continuous
operations. Typically an operator and computer controls the pumps, valves end
regulators throughout the pipelines system from a central location.
2. Oil pumping stations: Crude oil and petroleum products pumping stations are located at
wellheads and along the pipeline route as needed to maintain pressure and volume.
Pumps are driven by electric motors or diesel engines, and turbine.
3. Pipeline product storage. Crude and petroleum product pipeline terminals have
breakout storage tanks to which shipments may be diverted, where they are held until
required by a refinery, terminal or user.
4. Pipeline cleaning. Pipelines are cleaned on a scheduled basis or as necessary in order to
continue flow by reducing friction and maintaining as large a diameter interior as
possible. A special cleaning device, called a pig or go-devil is used.
5. Communications: It is important that there be communication and agreement
concerning schedules, pumping rates and pressures and emergency procedures
between pipeline stations and operators and those shipping and receiving crude oil, gas
and petroleum products.
Some pipelines companies have private telephone systems which transmit the signal
along the pipeline, while others use radios or public telephones.
6. Petroleum product shipment: Petroleum products may be shipped a number of
different ways on pipelines. A company operating a refinery may blend a specific grade

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 of its own gasoline with appropriate additives (additive) and ship a batch through a
pipeline directly to its own terminal for distribution to its customers.

1.3 Pipelines design and construction

1.3.1 Pipelines design– General Pipeline Design Considerations

The major steps in pipeline system design involve establishment of critical pipeline
performance objectives and critical engineering design parameters such as:

• Required throughput (volume per unit time for most petroleum products;
pounds per unit time for petrochemical feedstocks);
• Origin and destination points;
• Product properties such as viscosity and specific gravity;
• Topography of pipeline route;
• Maximum allowable operating pressure (MAOP); and
• Hydraulic calculations to determine:
• Pipeline diameter, wall thickness, and required yield strengths;
• Number of, and distance between, pump stations; and
• Pump station horsepower required.

Safety
Safety in pipeline design and construction is achieved by the proper design and
application of the appropriate codes and system hardware components.

Pipeline Coating
Corrosion-resistant coatings are applied to the exteriors of most pipes to inhibit corrosion.
These may be applied at the manufacturing plant or a pipe coating plant located separately.
However, coatings are also sometimes applied at the construction site. Even for precoated
pipe, field dressings of joints and connections are also performed at the construction site just
prior to burial. For particularly corrosive products (including some crude oils with high total acid
numbers), pipes are also sometimes coated on the inside for corrosion resistance. In addition
to the resistance to corrosion they provide, some interior coatings are also designed to reduce
frictional losses between the product and the interior walls of the pipe, thereby reducing the
total amount of energy required to move the materials along the pipeline.

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 Figure 2: Coating Newly Installed Pipe for Corrosion

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Other Design Considerations

Product Qualities
• Specific Gravity/Density
• Compressibility
• Temperature
• Viscosity
• Pour Point
• Vapor Pressure
• Reynolds Number
• Darcy Friction Factor
Movements at Pipe Bends
Mine Subsidence
Effects of Nearby Blasting
Earthquakes and Landslides

Leak Detection

The method of leak detection selected for a pipeline depends on a variety of factors
including pipeline characteristics, product characteristics, instrumentation and
communications capabilities, and economics (Muhlbauer 1996).
Small leaks on large pipelines are very difficult to detect through these automated
and measurement methods.However, the chosen system should include as many of the
following desirable leak detection utilities as possible (API 1995a):

• Possesses accurate product-release alarming,

• Possesses high sensitivity to product release,
• Allows for timely detection of product release,
• Offers efficient field and control center support,
• Requires minimum software configuration and tuning,
• Requires minimum impact from communication outages,
• Accommodates complex operating conditions,
• Is available during transients,
• Is configurable to a complex pipeline network,
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• Performs accurate imbalance calculations on flow meters,
• Is redundant,
• Possesses dynamic alarm thresholds,
• Possesses dynamic line pack constant,
• Accommodates product blending,
• Accounts for heat transfer,
• Provides the pipeline system’s real-time pressure profile,
• Accommodates slack-line and multiphase flow conditions,
• Accommodates all types of liquids,
• Identifies leak location,
• Identifies leak rate,
• Accommodates product measurement and inventory compensation for various
corrections (i.e., temperature, pressure, and density), and
• Accounts for effects of drag-reducing agent.

Overpressure Protection
A pipeline operator typically conducts a surge analysis to ensure that the surge pressure
does not exceed 110% of the maximum operating pressure (MOP). The pressure-relief system
must be designed and operated at or below the MOP except under surge conditions. In a
blocked line, thermal expansion is a concern, especially if the line is above ground.

Valve Spacing and Rapid Shutdown

The spacings of valves and other devices capable of isolating any given segment of a
pipeline are driven by two principal concerns: (1) maintaining the design operating conditions
of the pipeline with respect to throughput and flexibility and (2) facilitate maintenance or
repairs without undue disruption to pipeline operation and rapid shutdown of pipeline
operations during upset or abnormal conditions. Valve spacing and placement along the
mainline are often selected with the intention of limiting the maximum amount of material in
jeopardy of release during upset conditions or to isolate areas of critical environmental
concern to the greatest extent possible. Valves designed to prevent the backward flow of
product in the event of a pump failure (check valves) will also be installed in critical locations.

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Valves may also be required on either side of an exceptionally sensitive environmental area
traversed by the pipeline. Finally, valves will be installed to facilitate the introduction and
recovery of pigs for pipeline cleaning and monitoring. They also are required to be installed
at river crossings over 100 feet wide. The design of these must comply with regulations and
industry best practices.

Pumps and Pumping Stations

Desired material throughput values as well as circumstantial factors along the pipeline
route are considered in designing and locating pump stations. Desired operating pressures
and grade changes dictate individual pump sizes and acceptable pressure drops (i.e., the
minimum line pressure that can be tolerated) along the mainline; grade changes also dictate
the placements of the pump stations. Pump stations are often fully automated, but can also be
designed to be manned and to include ancillary functions such as serving as pig launching or
recovery facilities or serving as the base from which inspections of mainline pipe are
conducted.

Distribution Terminals

Marketing and distribution terminals temporarily store products removed from the
pipeline. There also may be loading racks and transfer operations. In most instances, terminals
are proximate to, but not necessarily within the pipeline ROW, even if the terminal is owned
and operated by the pipeline operator.

Measurement and Flow Control

SCADA (supervisory control and data acquisition) and Telecommunication Towers are
used. A typical SCADA system collects data from, and supervises control of, third-party
programmable logic controllers at each of the pipeline’s pumping stations, mainline valves,
and other areas where monitoring of critical conditions takes place.

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1.3.2 Pipeline construction
Avoid the following areas during pipeline construction:
- Swamps and Wetlands
- Rocky areas
- Unstable soil
- Populated areas
- Historical areas
- Environmentally sensitive areas (Forest, Tea garden, Rubber garden etc.)
- Religious sensitive areas ( Churches, Mosque , Graveyard, temple etc.)
During pipeline construction, the following processes and procedures are followed:
1. Surveying. The right-of-way (ROW) is a narrow strip of land that contains the pipeline(s)
and is where all onsite construction activities occur. After a planned or proposed route
is determined, it is surveyed to determine the parameters that will be needed to complete
the project.
2. Clearing & Grubbing. The Rout is cleared of brush and trees, and levelled to give workers
and equipment access to build, inspect and maintain the pipeline.
3. Stringing pipe joints along the ROW.: Stringing is the delivery and distribution of line pipe
where it is needed on the right-of-way and when it is needed.
4. Welding. A technique where another metal is melted and used to join lengths of pipe.
Automatic welding machines are used where possible and some hand welding also takes
place. A rigorous quality assurance and quality control program is followed to ensure the
strength and quality of the welding.

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 5. Digging the trench: The way the trench or ditch is dug, and what equipment is used,
depends mainly on the type of soil. Alternates include bucket wheel trenchers. Other
digging equipment will include backhoes or track hoes.
6. Lowering the pipe. Tractors with special arms called side booms are used to lower the pipe
into the trench. Care is taken to avoid damaging the pipe and its exterior coating.
7. Installing valves and special fittings. Valves and other connections are part of a pipeline.
These assemblies are installed as the pipeline is constructed. They include shut-off valves
that can block off sections of the pipeline for maintenance.
8. Backfilling the trench. Before testing the pipeline, the ditch is backfilled. Sometimes the
excavated soil is used to fill the trench and sometimes other selected backfill is used. Care is
taken to protect the pipe coating from potential damage.
9. Testing. A variety of methods will be used to ensure the integrity of the assembled pipeline
and to comply with code. Some of the test include; ultrasonic test or radiographic test.
10. Cleaning up. The pipeline right-of-way and temporary facilities such as camps will be
reclaimed.

1.4 Corrosion of pipelines and its detection.

1.4.1 External Corrosion: Most transmission pipelines are buried in the ground and are made of
carbon steel. External corrosion is caused by electrochemical interaction between the pipe and the
surrounding environment (soil in the case of buried pipes). Operators try to prevent external
corrosion by coating the pipe with a corrosion resistant material (such as epoxy) and by applying
an external voltage source to the pipe (cathodic protection). Although pipelines are coated and
under cathodic protection, corrosion can still occur. This may occur through a process called
cathodic disbandment (loosening of the coating from pipe).

1.4.2 Internal Corrosion: It occurs when there is significant water content mixed in with the fuel
flowing through the pipe. In large transmission pipeline, it is often required that oil contain no
more than 0.5% water so that the pipe content is not corrosive.

1.4.3 Corrosion pits

Corrosion pits are much localised corrosion defects, or small pits in the metal of the pipe.
Unchecked corrosion pits can result in a pipeline leaking.

1.4.4 How to detect corrosion in pipelines: Corrosion can be detected using intelligent pigs (pig
magnets). It can also determine the size of dents in a pipeline, and determine changes in alignment
of the pipeline. The latter can impose a strain in the pipeline that might lead to leak or a buckle in
the pipeline body. They use either ultrasonic technology or electromagnetic technology.

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Corrosion inside pipelines usually occurs in areas where deposits of sludge build up. Sludge is
comprised of sediments and bacteria that can grow in small pockets of water. At the temperatures
at which crude oil and diluted bitumen are transported through pipelines, heavy crudes are no
more corrosive than light crudes. If crude is found to be corrosive, a chemical corrosion inhibitor
can be injected into the stream to remove this corrosion.

1.5 How to clean pipelines

The different methods of cleaning pipes are;
1. Cleaning by Quenching: Filling of the whole pipeline with chemical product, to allow it to work
passively. Quenching time depends on product concentration, and nature deposit.

2. Cleaning by Batch: introduce a predetermined volume of chemical product between one (or
more) bi- directional pigs, in order to dissolve and carry deposits (Fig.1.2). This solution needs a
perfect sealing capacity of pig to be efficient.

Figure 1.2 - pipeline cleaning by batch

3. Mechanical Pigging: This is by the use of specialised pigging like gel pigging. Their function is as
follows; allows the cleaning of the non-piggable pipelines; can carry high quantities of sand,
deposits or dust without blocking because those products are in suspension in the gel.

1.6 Environmental impact

Because of the large volumes of products which are transported by pipelines on a
continuous basis, there is opportunity for environmental releases. Roughly 9 leaks and spills per
year happened along pipelines while about 44 occurred in facilities such as compressors or pump
station between 2006 and 2010 in Canada.
Internal corrosion, external corrosion, external intervention, soil displacement such as
landslides, material defects, and system malfunctions can cause leaks and ruptures. Usually,
majority of leaks are related to pump stations and valves, rather than the body of the pipeline. In
general, corrosion accounts for about 20% to 30% of pipeline leaks.

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1.7 Challenges Faced by Industries in Managing Corrosion of Pipelines

▪ The difficulty to identify internal corrosion

▪ The difficulty to manage the water that is being transported along with the crude oil which
is then responsible for the corrosion that occurs if in contact with the pipeline wall. Heavier
crudes entrain the water than lighter crudes which is beneficial for corrosion protection.

Case study: the chad- Cameroon pipeline

PART 1: TRANSPORTATION OF CRUDE OIL

CHAPTER 2
TANKERS - LOADING AND UNLOADING TECHNIQUES; OFFSHORE LOADING SYSTEMS,
INTERNATIONAL REGULATIONS ON TANKER TRANSPORTATION. CUSTODY TRANSFER

2.1 Types of Tankers

A tanker is a ship for carrying liquids especially mineral oils and gases, in bulk. Unloading involves
removing or getting rid of oil from a ship. Loading involves filling of the tanker with petroleum for
transportation. The following tankers are encountered in the industry:
1. Crude Carriers: They transport crude oil from oil wells in the Persian gulf, Alaska waters, the
north sea and other oil fields to oil refineries where it is converted to useful petroleum products.
These enormous ships hold more than 300,000tones and extend well over 300 meters in length.
The largest tankers afloat are called ultra large crude carriers.
2. Product Tankers: They carry refined petroleum products from oil refineries to ports around the
world where the products are transferred to trucks and rail cars to be distributed to consumers
They are much smaller than crude carriers; the most recent are only around 20 tones and
are 180meters in length.
Besides being smaller than crude carriers, product tankers are more complex. Instead of
consisting of a single giant tank, they feature multiple tanks that can carry a variety of refined
products.
3. Other Specialized Tankers: They include chemical tankers, liquefied gas carriers and ore/bulk/oil
carriers.
4. Chemical Tankers: They carry various chemicals from port to port.

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5. Liquefied Gas Carriers: Transport natural gas and petroleum gas. These products are carried in
the liquefied form rather than as gases because liquids take up less space than the same amount
of gas.
To maintain their cargo in liquid form, liquefied gas carriers hold cargo under pressure and
at very low temperatures to prevent it from vaporizing. They are constructed of special types of
steel that can withstand the stresses of pressure and cold.
6. All Bulk Oil Carriers: These are versatile ships that can perform as tankers but carries several
cargos at once.

2.2 Floating Storage and Offloading Units

Floating storage and offloading units (FSO) are used worldwide by the offshore oil industry
to receive oil from nearby platforms and store it until it can be offloaded onto oil tankers.
A similar system, the floating production, storage and offloading unit (FPSO) has the ability
to process the product while it is on board. This floating unit reduces oil production cost and offers
mobility, large storage capacity and production versatility.
When an oil tanker is chosen to transport the oil, it is necessary to accumulate oil in some
form of storage tanks such that the oil tanker is not continuously occupied during oil production
and it is only needed once sufficient oil has been produced to fill the tanker.

2.2.1 ADVANTAGES OF FPSOs

1. They are cost effective

2. They are particularly effective in remote areas or deep water locations.
3. FPSOs eliminate the need to lay expensive loading long distance pipe lines from the
processing facility to an onshore terminal.
4. When the field is depleted, the FPSO can be moved to a new location.

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2.3 Loading and unloading scheduling.
This is the schedule of the loading and unloading of crude oil in intermediate storage tanks,
between ports and the crude distillation unit.
It is very important that the crude oil is loaded and unloaded continuously primarily, for
security reasons but also to reduce the setup cost incurred when flowed between a port and a
tank or between a tank and a crude distillation unit.
The aim of scheduling is to develop an exact solution approach based on a generic mixed
integer model, which provides not only the optimal schedule of loading and unloading of crude oil,
minimizing the setup cost but also the optimal type of mixture preparation.
The system of scheduling is composed of:

1. a series of tanks to store crude oil

2. ports to accommodate the boats delivering the crude oil
3. CDUs where the mixtures of the crude oil are distilled.
4. Pipelines which connect the ports with the tanks and the tanks with the CDUs
5. Electric pumps for loading and unloading the crude oil
6. Mixers for the preparation of the mixtures required by the CDUs

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 Set up of tanks
Loading quantities of crude oil at the ports and unloading the quantities of mixtures
or crude oil towards the CDU requires a series of operations which are expensive for the
refinery.
They are as follows;
1. Configuring the pipeline networks(e.g. opening of valves)
2. Filling pipelines with crude oil
3. Sampling of crude oil for chemical analysis
4. Measuring of the crude oil stock in tank before loading/unloading
5. Starting the loading/unloading
6. Stopping the loading and unloading.
After loading/unloading;
1. Configuring a pipeline network(e.g. closing of valves)
2. Emptying pipelines
3. Measuring the crude oil loaded/unloaded in the tanks.

Loading and Unloading Constraints

1. Guarantee that the quantities loaded in tanks are equal to the quantities available to
ports in each period.
2. Guarantee that the quantities unloaded towards CDUs are equal to the quantities
required by them.
3. Guarantee that quantities stored in the tank is not greater than the storage capacity.

2.4 TANKER LOADING AND UNLOADING SYSTEMS

The main system of tanker loading and unloading systems is the usage of moorings. Tankers
are very sensitive to wave direction so it is usually best to allow the tanker to weather vane around
the mooring. This will reduce mooring forces and vessel roll. The mooring is attached to a single
point on the tanker, hence the term single point mooring. There are many types of SPMs.

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 Important design considerations are;
1. Collision between tanker and its mooring column.
2. Control of mooring system forces
3. Control of deflections
4. Environmental condition
The simplest method of mooring a tanker is the fixed tower. The fixed tower can work well
if the water depth and wave height are not too great.

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 Another type of the mooring anchored system is the CALM (quaternary anchored leg mooring).
Fixed towers replaced with a flexible floating hose to transfer the oil. CALM is less sensitive to
water depths.
SALM (single anchored leg mooring): they are placed under water and below the keel level of the
tanker. They are more stable
The ALC (Articulated Loading Column) is a cross between the fixed tower and the SALM. It has a
swivel above the water. It requires a universal joint below the water.
SPAR (single point mooring and reservoir): this is a very large CALM buoy. Large quantity of oil can
be stored between tanker cells.

2.5 Tankers Loading and Unloading Techniques

2.5.1 Loading Techniques
Pre-transfer preparation
1. Prior to any transfer of cargo, the chief officer must develop a transfer plan detailing
specifics of the operation such as how much cargo will be moved, which tanks will be
cleaned, and how the ship's ballasting will change.

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 2. The next step before a transfer is the pre-transfer conference. The pre-transfer
conference covers issues such as what products will be moved, the order of
movement, names and titles of key people,

3. particulars of shipboard and shore equipment, critical states of the transfer,

regulations in effect, emergency and spill-containment procedures, watch and shift
arrangements, and shutdown procedures

4. After the conference is complete, the person in charge on the ship and the person in
charge of the shore installation go over a final inspection checklist. In the United
States, the checklist is called a Declaration of Inspection [or DOI].

5. Outside of the U.S., the document is called the "Ship/Shore Safety Checklist. Items on
the checklist include proper signals and signs are displayed, secure mooring of the
vessel, choice of language for communication, securing of all connections, that
emergency equipment is in place, and that no repair work is taking place

Loading cargo
1. Oil is pumped on and off the ship by way of connections made at the cargo manifold.
2. Loading an oil tanker consists primarily of pumping cargo into the ship's tanks. As oil
enters the tank, the vapors inside the tank must be somehow expelled.
3. Depending on local regulations, the vapors can be expelled into the atmosphere or
discharged back to the pumping station by way of a vapor recovery line. It is also
common for the ship to move water ballast during the loading of cargo to maintain
proper trim.
4. Loading starts slowly at a low pressure to ensure that equipment is working correctly
and that connections are secure. Then a steady pressure is achieved and held until the
"topping-off" phase when the tanks are nearly full. Topping off is a very dangerous time
in handling oil, and the procedure is handled particularly carefully.
5. Tank-gauging equipment is used to tell the person in charge how much space is left in
the tank, and all tankers have at least two independent methods for tank-gauging.
6. As the tanker becomes full, crew members open and close valves to direct the flow of
product and maintain close communication with the pumping facility to decrease and
finally stop the flow of liquid.

2.5.2 Unloading Techniques

1. This cargo pump aboard a VLCC can move 5,000 cubic meters of product per hour.
2. The process of moving oil off of a tanker is similar to loading, but has some key
differences. The first step in the operation is following the same pre-transfer
procedures as used in loading.

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3. When the transfer begins, it is the ship's cargo pumps that are used to move the
product ashore. As in loading, the transfer starts at low pressure to ensure that
equipment is working correctly and that connections are secure . Then a steady
pressure is achieved and held during the operation.
4. While pumping, tank levels are carefully watched and key locations, such as the
connection at the cargo manifold and the ship's pump room are constantly
monitored.
5. Under the direction of the person in charge, crew members open and close valves to
direct the flow of product and maintain close communication with the receiving
facility to decrease and finally stop the flow of liquid

2.6 Tank Cleaning

1. Tanks must be cleaned from time to time for various reasons. One reason is to
change the type of product carried inside a tank.
2. Also, when tanks are to be inspected or maintenance must be performed within a
tank, it must be not only cleaned, but made gas-free.
3. On most crude-oil tankers, a special crude oil washing (COW) system is part of the
cleaning process. The COW system circulates part of the cargo through the fixed
tank-cleaning system to remove wax and asphaltic deposits. Tanks that carry less
viscous cargoes are washed with water.
4. Fixed and portable automated tank cleaning machines, which clean tanks with high-
pressure water jets, are widely used. Some systems use rotating high-pressure water
jets to spray hot water on all the internal surfaces of the tank. As the spraying takes
place, the liquid is pumped out of the tank.
5. After a tank is cleaned, provided that it is going to be prepared for entry, it will be
purged. Purging is accomplished by pumping inert gas into the tank until
hydrocarbons have been sufficiently expelled.
6. Next the tank is gas freed which is usually accomplished by blowing fresh air into the
space with portable air powered or water powered air blowers. "Gas freeing" brings
the oxygen content of the tank up to 20.8% O2. The inert gas buffer between fuel
and oxygen atmospheres ensures they are never capable of ignition.
7. Specially trained personnel monitor the tank's atmosphere, often using hand-held
gas indicators which measure the percentage of hydrocarbons present.
8. After a tank is gas-free, it may be further hand-cleaned in a manual process known as
mucking.
9. Mucking requires protocols for entry into confined spaces, protective clothing,
designated safety observers, and possibly the use of airline respirators.

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2.7 Consequences of Loading and Offloading
In the course of loading and offloading, some of the oil is spilled into the environment. Also,
from time to time, the tankers and storage systems are cleaned up and the waste from the
cleaning is disposed of in the environment. Oil spills have devastating effects on the environment.
Crude oil contains polycyclic aromatic hydrocarbons (PAHs) which are very difficult to clean up.
The International Tanker Owners Pollution Federation has tracked 9,351 accidental spills that have
occurred since 1974. According to this study, most spills result from routine operations such as
loading cargo, discharging cargo, and taking on fuel oil.

2.8 Custody Transfer

Custody Transfer in the oil and gas industry refers to the transactions involving transporting
physical substance from one operator to another. This includes the transferring of raw and refined
petroleum between tanks and tankers; tankers and ships and other transactions. Custody transfer
in fluid measurement is defined as a metering point (location) where the fluid is being measured
for sale from one party to another. During custody transfer, accuracy is of great importance to
both the company delivering the material and the eventual recipient, when transferring a material.
Custody transfer takes place any time fluids are passed from the possession of one party to
another.
- Custody transfer generally involves:
- Industry standards;
- National metrology standards;
- Contractual agreements between custody transfer parties; and
- Government regulation and taxation.
Due to the high level of accuracy required during custody transfer applications, the flow
meters which are used to perform this are subject to approval by an organization such as the
American Petroleum Institute (API). Custody transfer operations can occur at a number of points
along the way; these may include transferring of oil from an oil production platform to a ship,
barge, railcar, truck and also to the final destination point, such as a refinery.

2.8.1 Components of custody transfer

Custody transfer requires an entire metering system that is designed and engineered for the
application, not just flow meters. Components of a custody transfer system typically include:
- Multiple meters/meter runs;
- Flow computers;
- Quality systems (gas chromatographs to measure energy content of natural gas, and sampling
systems for liquid);
- Calibration using in-place or mobile provers for liquid, or master-meter for liquid or gas; and
- Supporting automation.

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A typical liquid custody transfer skid includes multiple flowmeters and meter provers. Provers are
used to calibrate meters in-situ and are performed frequently; typically before, during, and after a
batch transfer for metering assurance. A good example of this is a Lease Automatic Custody
Transfer(LACT) unit in a crude oil production facility.

2.8.2 Accuracy
In the ISO 5725-1 standard, accuracy for measuring instruments is defined as “the closeness
of agreement between a test result and the accepted reference value”. This term “accuracy”
includes both the systematic error and the bias component. Each device has its manufacturer
stated accuracy specification and its tested accuracy.

2.8.3 Custody transfer requirements

Custody transfer metering systems must meet requirements set by industry bodies such as
API, or ISO, and national metrology standards such as OIML (International), NIST (U.S.), PTB
(Germany), CMC (China), and GOST (Russia), among others. These requirements can be of two
types: Legal and Contract.

1. Legal
The national Weights & Measures codes and regulations control the wholesale and retail
trade requirements to facilitate fair trade. The regulations and accuracy requirements vary widely
between countries and commodities, but they all have one common characteristic - “traceability”.
There is always a procedure that defines the validation process where the duty meter is compared
to a standard that is traceable to the legal metrology agency of the respective region.

2. Contract
A contract is a written agreement between buyers and sellers that defines the measurement
requirements. These are large-volume sales between operating companies where refined products
and crude oils are transported by marine, pipeline or rail. Custody transfer measurement must be
at the highest level of accuracy possible because a small error in measurement can amount to a
large financial difference. Due to these critical natures of measurements, petroleum companies
around the world have developed and adopted standards to meet the industry's needs.

2.8.4 Liquid Custody transfer

Custody transfer of liquid flow measurement follow guidelines set by the ISO. By industrial
consensus, liquid flow measurement is defined as having an overall uncertainty of ±0.25% or
better. The overall uncertainty is derived from an appropriate statistical combination of the
component uncertainties in the measurement system.

1. Mode of measurement
Volume or mass measurement: Liquid flow measurements are usually in volumetric
or mass unit. Volume is normally used for stand-alone field tanker loading

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 operations, while mass is used for multi-field pipeline or offshore pipeline with an
allocation requirement.
Mass measurement and reporting are achieved by
• Measurement of volume flow rate (for example, by turbine or ultrasonic meter) and fluid
density
• Direct mass measurement by Coriolis meter

2. Sampling system
An automatic flow-proportional sampling system is used in flow measurement to determine
the average water content, average density and for analysis purposes. Sampling systems should be
broadly in accordance with ISO 3171. The sampling system is a critical section during flow
measurement. Any errors introduced through sampling error will generally have a direct, linear
effect on the overall measurement.

3. Temperature and pressure measurement

Temperature and pressure measurement are important factors to consider when taking flow
measurements of liquids. Temperature and pressure measurement points should be situated as
close to the meter as possible, in reference to their conditions at the meter inlet. Temperature
measurements that affect the accuracy of the metering system should have an overall loop
accuracy of 0.5°C or better, and the corresponding readout should have a resolution of 0.2°C or
better.
Pressure measurements that affect the accuracy of the metering system should have an overall
loop accuracy of 0.5 bar or better and the corresponding readout should have a resolution of 0.1
bar or better.

2.8.5 Gaseous custody transfer

Custody transfer of gaseous flow measurement follow guidelines set by the international
bodies. By industrial consensus, gaseous flow measurement is defined as mass flow measurement
with an overall uncertainty of ±1.0% or better. The overall uncertainty is derived from an
appropriate statistical combination of the component uncertainties in the measurement system.

1. Mode of measurement
Volume or mass unit : All gasket flow measurement must be made on single-phase gas
streams, having measurements in either volumetric or mass units.
Sampling: Sampling is an important aspect, as they help to ascertain accuracy. Apt
facilities should be provided for the purpose of obtaining representative samples. The
type of instrumentation and the measuring system may influence this requirement.

Gas density: Gas density at the meter may be determined either by:
- Continuous direct measurement, by on-line densitometer
- Calculation, using a recognized equation of state together with measurements of the gas
temperature, pressure and composition.

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Most industries prefer to use the continuous measurement of gas density. However, both methods
may be used simultaneously, and the comparison of their respective results may provide
additional confidence in the accuracy of each method.

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 CHAPTER 3: OIL STORAGE
3.0 Introduction
Production, refining, and distribution of petroleum products require many different types and sizes
of storage tanks. Small bolted or welded tanks might be ideal for production fields while larger,
welded storage tanks are used in distribution terminals and refineries throughout the world.
Product operating conditions, storage capacities, and specific design issues can affect the tank
selection process.

3.1 Storage tanks

3.1.1 Types of storage tanks
Storage tanks come in all sizes and shapes. Special applications might require tanks to be
rectangular, in the form of horizontal cylinders, or even spherical in shape. Horizontal cylinders
and spheres are generally used for full pressure storage of hydrocarbon or chemical products. The
most common shape used is the vertical, cylindrical storage tank. Gross capacities can range from
100 bbl to over 1.5 MM bbl in a single storage tank.

Fig.3.1—floating-roof tank.

3.1.2 Production tanks construction practices

The type of construction selected for a storage tank depends on the size of tank required
and might be dependent on the type of product being stored, the location and space available for
storage, prevailing weather or site-specific conditions, and local safety or environmental
considerations.

1. Riveted, bolted, and shop welded tanks

Before the development and perfection of welding processes, petroleum storage tanks used
either bolted or riveted construction techniques.
Riveted tanks dating back to the early 1900s can still be found around the world—many still
in service. It is safe to say, however, that recurring maintenance costs and increased

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environmental and safety concerns dictate that older riveted tanks be replaced with new, state-of-
the-art storage tanks.
However, bolted tanks are still used, especially in the smaller sizes typical of produced
liquid storage. Current suppliers of bolted tanks can provide capacities up to 40,000 bbl or more
depending on the storage application.
One alternative to bolted construction is the shop welded storage tank. The size and
capacities of this type of tank are limited primarily by the method of transportation used to
transfer the shop built tank to the final production site.
Shop-welded storage tanks provide the production industry with tanks of adequate safety
and reasonable economy for use in the storage of crude petroleum and other liquids commonly
handled by the production segment of the industry
A second alternative for bolted construction is the shop fabricated or field assembled
nonmetallic storage tank. Nonmetallic tanks customarily are constructed from plastic materials.
These have the advantage of being non-corroding, durable, low-cost, and lightweight. Probably
the most common type used is the fiberglass reinforced plastic (FRP) tank.
The temperature limits of plastic tanks are approximately 40 to 150°F. Because plastic tanks are
considered to degrade more quickly than metal tanks when exposed to fire, some operators
prohibit the use of plastic tanks in hydrocarbon service.
2. Field welded storage tanks
Field-welded storage tanks easily meet industry needs for increased storage capacity whether
at a remote production site, at the refinery, or at the marketing terminal. As noted, earlier single-
tank capacities have exceeded 1.5 MMbbl of storage with tank diameters of 412 ft (125.6m) and
shell heights exceeding 72 ft (22m).
The standard covers open-top or fixed-roof storage tanks that generally operate at
atmospheric pressures. Design pressures above atmospheric and design temperatures exceeding
200°F

3.1.3 Current storage options

The petroleum industry has experienced significant changes in the types of products used to
feed the refineries around the world. The increased use of petroleum products has prompted the
industry to turn to other sources for supply. Changes in product, physical, and chemical properties
impose new challenges to the storage tank industry. Environmental and safety requirements
continue to be a significant factor in the selection and design of the storage tanks used by the
petroleum industry.
The general types of atmospheric storage tanks (AST) in use may be open top tanks (OTT),
fixed-roof tanks (FRT), external floating-roof tanks (EFRT), or internal floating-roof tanks (IFRT).
Depending on the product, a closed floating-roof tank (CFRT) may even be selected.

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 The above ground storage tank has evolved with time. Fig. 2 illustrates this trend, which has
emphasized improved safety and improved product loss control. Production facilities generally rely
on either open-top tanks or fixed-roof tanks operating at or slightly above atmospheric pressure.

Fig. 3.2—Atmospheric storage tank improvements.

3.2 Open top tanks (OTT)

The OTT was one of the first tanks used to store petroleum products. While it provides liquid
containment, direct exposure of the liquid surface to the atmosphere assures high evaporative
losses, product odors, and increased potential for fires. The OTT has only limited use, primarily
for collection of contaminated run-off or wash water and wastewater processes.

3.3 Fixed roof tanks (FRT)

The FRT provides improved containment of product vapors and reduces the potential for fires.
The FRT still exposes the liquid surface to the tank vapor space, producing significant product
evaporative losses. This increases the possibility of forming a combustible gas mixture in the vapor
space for certain more volatile petroleum products. For this reason fixed roof tanks in refineries
are generally used for products with vapor pressures less than 1.5 psia.

Fig.3.3 - Diagram of a fixed roof tank

3.3.1 Fixed roof tanks storage
During the process of storing crude oil, light hydrocarbons such as natural gas liquids,
volatile organic compounds, hazardous air pollutants and some inert gases, vaporize and collect
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between the liquid level and the fixed roof tanks. As the liquid level in the tank varies, these gases
slowly release out to the atmosphere. A solution to prevent this from occurring is by installing
vapour recovery units. These units capture the BTU-rich units for sale or use it onsite as fuel.
Tank Breathing. When a volatile product is stored in a freely ventilated fixed-roof tank, the
concentration of volatile vapors in the vapor space can vary depending on the tank
operating conditions. During holding periods, when no liquid is added or removed from the
tank, the vapor space comes to equilibrium conditions based on product temperature and
vapor pressure.
Emissions during holding are generated by the vapor space breathing process. As a
result of daily ambient heating and cooling processes or changes in barometric pressure,
the air/vapor mixture in the vapor space expands and contracts. During the daily heating
process, some of the air/vapor mixture is expelled from the tank, resulting in evaporative
emissions. During product cooling, air is drawn into the vapor space and becomes saturated
with product vapor from natural evaporation. The air becomes saturated with product
vapors. Note that this can result in a combustible gas mixture in the vapor space, increasing
the fire risk.
Vent System Design. Safety should be a primary concern when selecting a storage
tank vent system for a specific application. In production operations, this normally means
that a safe way of handling vapors that evolve from the liquid must be designed into the
system, and air must be excluded from entering the tank and mixing with hydrocarbon in
the vapor space. Fixed roof tanks should be configured to operate with a suitable gas
blanketing system that maintains the tank at positive pressures under all operating
conditions. Specially designed pressure/vacuum vent valves should be provided to protect
the tank against overpressure or vacuum conditions.

Tank vent piping should include flame arrestors which protect the tank against ignition of
the vent gases owing to lightning strike or a discharge of static electricity at the vent
location.
Fixed-roof tanks will fail if exposed to excessive internal pressure or extreme vacuum conditions.
Regular maintenance of pressure/vacuum vent valves and flame arrestors is critical to the safe
operation of any fixed-roof tank.
When provided, tank vents should be sized to protect the tank against unusually high
internal pressures (venting required) or low pressure vacuum conditions (in breathing or vapor
makeup required). Normal operating conditions include:
(i) In breathing (vacuum) resulting from maximum outflow of product from the tank.
(ii) In breathing (vacuum) resulting from contraction of vapors caused by a maximum
decrease in atmospheric temperature.

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 (iii) Out breathing (pressure) resulting from flashing of hydrocarbons as liquid flows from a
higher pressure source into the tank. In production operations this can be the largest
source of vent vapors.
(iv) Out breathing (pressure) resulting from maximum inflow of product into the tank,
hydrocarbon flash vapors, and maximum product evaporation caused by the inflow.
(v) Out breathing (pressure) resulting from expansion and evaporation caused by a
maximum increase in atmospheric temperature.
(vi) Out breathing (pressure) resulting from fire exposure.

3.4 Floating roof tanks

Although not normally used in production operations, floating roof tanks are often used in
pump stations or terminals where the crude oil has been stabilized to a vapor pressure of less than
11.1 psia.

3.4.1 Types of floating roof tank

a) External floating roof tank
A typical external floating roof tank consists of an open top cylindrical steel shell equipped
with a roof that floats on the surface of the stored liquid, rising and falling with the liquid level.
The external floating roof design is such that evaporative losses from the stored liquids are limited
to losses from the rim seal system and deck fittings (standing storage loss) and any exposed liquids
on the tank walls.
b) Internal floating roof tanks:
The tank has both a permanent fixed roof and a floating roof inside. There are two basic
types:
i) Tanks in which the fixed roof is supported by vertical columns within the tank
ii) Tanks with a self-supporting fixed roof and no internal support columns
c) Domed shape external floating roof tanks
They have the heavier type of deck used in external floating roof tanks as well as a fixed
roof at the top of the shell like internal floating roof tanks.

3.4.2 Floating roof tanks (as compared to fixed roofs) – Pros and Cons
Floating roof tanks are advantageous, compared to fixed roof tanks, as it prevents vapour
emissions (that are highly combustible) that help eliminate the chances of fire or an internal tank
explosion.
They are usually used for stable liquids (with no dynamic loads acting, as discussed later).
However, adverse environmental conditions could affect floating roofs as accumulation of snow
and rain water could result in roof submersing in the stored liquid.

3.5 Pressure vacuum valves

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 The evolution of hydrocarbon vapors is dependent on the product’s physical characteristics,
the operating pressure of upstream equipment, tank storage conditions, and tank operations. In
production operations, the fluid entering a tank often comes from a higher-pressure source
(separator, treater, or other production vessel). As the fluid enters the tank, a portion of the fluid
will "flash" to vapor. Depending on tank design, vapors may be directed through pressure vent
valves directly to a vent or lighted flare. Alternatively, a vapor recovery compressor (or blower)
may be installed to direct vapors vented from storage to downstream compressors for sales or
injection. Vacuum relief valves are needed to keep a vacuum from occurring because of tank
breathing and pumping operations. If a vacuum develops, the tank roof will collapse. Typically,
both pressure and vacuum relief are combined in a single pressure-vacuum relief valve such as
that shown in Fig. 3.

Fig. 3.4 —Pressure vacuum valve operator.

3.6 Tank appurtenances

Tanks may include a variety of appurtenances depending on the storage application, owner
requirements, and applicable design codes. In addition to normal product fill and withdrawal
connections, access man-ways and various instrument or gauging connections, a tank can include
shell-mounted mixers, internal heaters, platforms, ladders, and pressure/vacuum relief vents.
Some features are required for safe operation of the floating roof while others may be
optional based on specific storage requirements. Figs.3.5 identifies several features that must be
considered when designing the floating-roof tank.

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 Fig. 3.5—Floating-roof tank appurtenances, Example .

3.7 Tank battery

Tank Battery for Hydrogen Sulfide Crude Storage. Constant attention should be given to the
hazardous condition created by iron sulfide deposits. These occur most frequently within the
vapour space and particularly on the underneath exposed side of the deck.
These iron sulfide deposits generate severe corrosion that can go unnoticed when deck
conditions are observed from the topside only.

When sour crude is stored, all openings on the tanks should be kept closed because hydrogen
sulfide is poisonous.
Valves are located at a convenient level to permit sampling on the ground without the tanks
being opened. If available, a small amount of sweet gas should be fed into the top of the tank
continuously to establish a “gas sweep.”

This ensures positive pressure within the tank at all times and prohibits air from entering the tank,
thereby greatly reducing corrosion.

It is advisable to extend the tank vent line well beyond the tank battery and to use a back pressure
valve and flame arrester in the vent line.

The vapors should be flared and not vented

3.7.1 Truck Pit

Trucks hauling oil to the battery dump their load into 300+m3 tanks, called dump tanks, usually
buried in-ground. Some dump tanks have a siphon line at the bottom to remove accumulations of
saltwater. However, all tanks must be cleaned periodically to remove the solids that have settled
out from the raw crude oil.

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3.7.2 Truck Pit Transfer Pump
This pump transfers the raw crude oil from the dump tank(s) into the first of two charge tanks
located above ground. One of the two tanks may be designated a "slop tank" to handle not only
raw crude but also "recycled" crude which may have to be run through the system a second time
in order to be cleaned sufficiently.
3.7.3 Slop Tank
The slop tank is the primary tank in the charge system of the battery. It receives oil from the
truck pit transfer pump and acts as a sediment bowl where more solids are allowed to settle.
Saltwater is also siphoned off at the bottom of the tank. Pressure created by the pit pump forces
the oil out of the slop tank and into the charge tank. Residual solids from the treaters can be
reintroduced here for further treatment, but more often this slop, along with slop that is produced
in other areas of the battery, is trucked to a more specialized cleaning facility before it is pumped
back into the earth.

3.7.4 Charge Tank

This is the second tank in the battery’s charge system and is another step in the progression
to clean oil. It provides an additional opportunity for water and solids to separate, and it has a
siphon line for water. Pressure supplied by the pit pump provides a head of pressure in the charge
tank as well. Both the slop and the charge tanks have level controls and a portion of the tank
always contains air. When oil is pumped into the tank the trapped air is compressed providing a
relatively constant head of pressure.

3.8 Fluid sampling (in Tank farms. Work on this and not fluid sampling in general) (Do not read
for exams)
Many general petroleum engineering texts have sections covering the measurement of
phase behavior or pressure/volume/temperature (PVT) analysis, but few have detailed
descriptions of reservoir fluid-sampling practices. This article discusses the rationale for fluid
sampling, general guidance for establishing a sampling program, and some special cases that go
beyond the typical fluid sampling approaches.

3.8.1 Overview
An enormous range of reservoir fluids exists, and this means that the limited measurements of
produced oil and gas properties that can be made in the field are far from adequate to provide the
detailed characterization that modern petroleum engineering requires. In addition to PVT analysis,
of fundamental importance to reservoir management, measurements relating to corrosion
potential, solids formation, and nonhydrocarbon constituents have the potential to produce
serious effects on:

• The design of production facilities

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 • Compatibility with pipeline transport
• Product sales value
• Refinery maintenance costs
• Reservoir asset values in general

The lack of such data could easily represent more risk than that tolerated when the decision to
perform sampling and laboratory studies is taken. Examples of the financial impact of errors in
fluid-property measurements are given elsewhere. Fluid samples are thus required to enable
advanced physical and chemical analyses to be carried out in specialized laboratories. Samples
must be collected from a wide range of locations such as:

• Separators
• Pipelines
• Tanks
• Wellbores
• The formation

This topic primarily targets the sampling of fluids under pressures above atmospheric, where
numerous tools and procedures have been developed that are essentially specific to the
petroleum industry. Best practices are proposed for fluid sampling, reporting of data, and quality
control of samples.

Reservoir-fluid-property measurements derive from a complicated series of processes relying both

on the operation of equipment and the performance of people, so the scope for errors is very
significant. The overriding challenge in fluid sampling is that of ensuring that the fluid entering the
sample container is representative of the bulk fluid being sampled. It is equally important that the
sample remains representative during handling and storage, until all required measurements have
been completed. On occasion, laboratory measurements can show that a fluid is definitely not
representative (e.g., saturation pressure is significantly higher than reservoir pressure), but even
here the problem could lie with errors in field measurement data rather than with the samples
themselves. Thus, it is essential that all the necessary precautions are taken to prevent poor
samples from leading to erroneous physical-property measurements.

3.8.2 Sampling procedures

Sampling procedures differ based on whether the fluids are pressurized or not. For applicable
procedures, see

• Downhole fluid sampling

• Surface sampling of reservoir fluids
• Nonpressurized hydrocarbon fluid sampling (check this for tanks)
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• Oilfield water sampling

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