ENERGY INSTITUTE
HMC-4 OIL TRANSPORTATION MEASUREMENT COMMITTEE
Minutes of the Meeting of 14th and 15th May 2013
48th Meeting
Held at the Radisson Blu Hotel, Stavanger, Norway
Hosted by Statoil
Disclaimer
This document and attachments are for information only. The EI as a body is neither responsible for the statements or opinions expressed in the documents nor does it endorse the technical views expressed or the equipment/techniques described.
Presentations
Copies of presentations marked * are available from the HMC committee page on the Energy Institute website.
Those present:
P Rooney Phillips 66 Ltd (Chair)
B Nicholls BP Oil (Vice Chair)
A Drewery Phillips 66 Ltd
J Lopez Chevron
P Monteverde ENI Trading and Shipping, Rome
A Kroll ExxonMobil
A Lima Galp Energia
G Defilippo Marathon
AF Harboe Petrobras
C Johnston RasGas
A Alyahya Saudi Aramco
A Terry Shell
M Lim Statoil
T Hjorteland Statoil
J Osmundsen Statoil
C Mahmudov Statoil
K Saleh Sumed
P Weinreich TAL
C Mahaffey Total (Atlantic)
D Solewicz Total
C Laurens Unipec
A Panni EBOTA
D Bleser IFIA
M Harrison IFIA
P Harrison Consultant/Secretary
Notes 1. Speakers and Guests are listed under 4.0 below
2. A detailed contact list is included as Attachment 1
1.0 WELCOME AND INTRODUCTION
Following a safety briefing Pete Rooney welcomed everyone to the meeting, reminding representatives of their anti-trust obligations.
Johan Osmundsen welcomed everyone to Stavanger on behalf of Statoil and provided some interesting information about the port.
2.0 AGENDA APPROVAL
The agenda was reviewed and approved. It was agreed that a presentation by Adam Panni regarding EBOTA would be included.
3.0 APOLOGIES
Apologies were received from:
Claudio Solis PMI
Lucio Pappada ENI
Steeve Baillon Total
Arthur Kay IFIA (SGS)
John Spengel Shell
John Sweeney Phillips 66
Bao Lih Huang CPC
Steinar Fosse NPD (see 11.0 below)
4.0 MEMBERSHIP AND GUESTS
Committee membership stands at 26 companies; 17 A committee members plus CITGO, Valero, Saudi Aramco, Sumed, Ras Gas, BG Group, Mercuria, Unipec and Koch. Koch dropped out of the A committee for 2012 but intend to rejoin and ERG have left both groups.
Efforts continue to attract new members. Contact with Petroineos is being maintained.
A welcome was extended to guest speakers from:
Statoil Marthe Hoff
Statoil Jingshi Ruan Yang
Norwegian Petroleum Directorate Halvard Hedland
Dopak Erik Lantinga
Cameron-Jiskoot Jon Moreau
Krohne Bart Van Deer Strap
5.0 MINUTES OF THE LAST MEETING
5.1 Approval
The minutes were accepted as a true record of the meeting held in Houston on 6th and 7th November 2012.
5.2 Actions and Matters Arising
Committee Officers
Following the withdrawal from the chairmanship of Mike Wilson of ExxonMobil Pete Rooney of Phillips 66 had been confirmed as chair and Bruce Nicholls of BP as vice chair.
LNG Metrology
The work of the VSL project had been presented in May 2011 and it was agreed that the EI should follow progress with a view to participating in development and publication of any new standards/guidance which may eventually result. It was noted that VSL were running a conference in Delft, Netherlands on 17/18 October and that representatives were planning to attend. Members with LNG interests were asked to consider participation.
ACTION MEMBERS/P HARRISON
OCIMF Inspection CompanyAssessment
Following the last meeting the EI had expressed concerns over the proposed scheme and had also had sight of the self assessment pro forma. This had raised more concerns as, although the proposed work group had not had a meeting the document was clearly in a final draft state and it was made clear that opportunities for change were limited. However, following the meeting with OCIMF where further concerns were expressed, together with a willingness to work with OCIMF on specific safety issues (H2S, boarding ships, etc.) there had been no news and no meetings of the new work group had taken place.
It was noted that chairmanship of the OCIMF PTC committee had recently changed (now Bill Crabbs of P66) which may have resulted in the lack of progress. G Defilippo agreed to follow up with OCIMF contacts.
ACTION G DEFILIPPO
Terms of Reference
No improvement on the current committee name had been found and it was agreed to issue the revised terms of reference for ballot maintaining the current name.
ACTION P HARRISON
Other actions and matters arising are covered in the agenda below.
6.0 * STATOIL OVERVIEW – Marthe Hoff, Statoil
(More details with presentation)
Marthe’s presentation covered Statoil’s current position and corporate strategy. The company is 67% owned by the Norwegian government.
In the upstream sector the target is to increase production to 2.5 million boe/d by 2020. This will be achieved through enhancement of recovery rates for existing North Sea facilities and further developments in the Norwegian Sea and Barents Sea together with participation in global developments including US shale, Canadian oil sands and EU gas.
The crude, liquids and products division is one of the worlds largest crude oil traders, marketing Statoil’s own equity production (providing “flow assurance”) and third party volumes totalling around 2 million bpd with a turnover of 1.5 billion NOK per day. They are also responsible for commercial operations at Mongstad/Sture and South Riding Point in the Bahamas but are no longer involved in retail outlets. The strategic direction is to build on their EU position, build value chains in North America and to grow global trading in selected markets, physical and financial.
With regard to shipping, the company owned Navion fleet has been sold to TeeKay and all vessels are now chartered, mainly long term but some spot. Shuttle tankers are on long term contracts to give maximum availability and control.
Volumes for 2012 were given as:
Crude: 714Mbbl/year – 695 voyages
Equity volumes from Norway, UK, Azerbaijan, Algeria, Angola, Libya, Brazil, Nigeria, Venezuela, US, Canada and Russia
Gas liquids: 14M tonnes/year – 914 voyages
Equity volumes from all North Sea Norway and UK, Snøhvit (Barents Sea), Kalundborg (Denmark), Algeria and Iran
Products: 15M tonnes from Statoil refineries together with 807 000 tonnes of methanol – 1536 voyages
It was noted that LNG operations are developing with one train running at Snohvit and a number of possible developments elsewhere, including Tanzania.
7.0 ENERGY INSTITUTE REPORT – Paul Harrison
7.1 Committee Organisation
It was noted that the HM sub committees are organised as follows:
· HMC-1 Upstream
· HMC-2 Refineries and Downstream
· HMC-3 Inspection
· HMC-4 Transportation
· GTC Committee
· Asian Forum
7.2 Work Item Progress
HMC-1 Upstream
· HM70 Series Upstream Measurement Guides
o Content to be included in the revision of HM54 Management of measurement
o HM75 Management guide to uncertainty to be published separately
· HM8/ISO DIS 9857 Continuous Density Measurement
o Revised pyknometry document in preparation – STAC funded
· Training curriculum
o Work with contractor progressing
· HM25 Uncertainty
o Revision draft near completion
· Implementation of Phase 3 of EU emissions trading regulations – updates of:
o HM53 Guidelines for emissions trading
o HM54 Management of measurement
o HM58 Flare gas measurement
STAC funds available for all the above
· HM60 Auditing of measurement systems
o Committee update in 2013
HMC-2 Refineries and Downstream
· Rationalisation of metering and proving standards
o HM19 Temperature measurement on loading gantries
§ Editorial
o HM12 Design, installation and calibration of pipe provers
§ Editorial
· Review/Revisions
o HM32 Guide to Hydrocarbon Management at Petroleum Marketing and Distribution Terminals
§ Under review
· Data analysis
o 2012 refinery loss (benchmarking) analysis complete
o New participants welcome – next meeting set for June 13th
HMC-3 Independent Inspection
· HM28, 29 and 30 Crude oil/ Products and LPG inspection procedures
o Editorial
· HM51/API Ch 17.11 - Procedures for bulk liquid chemical cargo inspections by cargo inspectors
o Revision in progress – EI updates with API group for review
· HM55/API Ch 17.10.2 - Marine Measurement, Measurement of refrigerated and/or pressurized cargoes on board marine gas carriers - Liquefied petroleum and chemical
o Revision comments being addressed
· HM4 Manual Measurement of Level in Tanks
o Efforts to combine this with API 3.1A had not succeeded and a new work group has been formed to revise the document as EI guidance.
HMC – General
· EI-JIG 1530 Quality assurance requirements for the manufacture, storage and distribution of aviation fuels to airports
o Final comments being addressed. Publication expected later in 2013.
· Training
o Work continues on the upstream measurement training curriculum (HMC-1)
Agreements have been reached with a platform provider (IDESS) and with SGS to use their material as the basis for on-line training. It is intended to add material from others to extend the facility.
7.3 Asian Forum
The last meeting was in December 2012 with the next meeting planned for 20th June. The main work item is HM67 – Additisation Guidelines, recently circulated for comment. Comments will be addressed at the next meeting. Hopefully the document can then be balloted.
Issues regarding bunkering remain a key issue for the group.
7.4 EI GTC Committee
The Model Terms for CIF/CFR sale and purchase of crude oil version had been balloted and comments were still being addressed with a view to publishing in Q3. The next work items will be FOB and CIF products contracts.
It was noted that close contact was being maintained with LEAP who are working on EU barge terms in order to standardise general clauses across all model terms.
The possibility of developing model bunker contracts following the products work had been suggested but had not so far met with much support.
8.0 API REPORT – Prepared by Sally Goodson, API
(presented by P Harrison)
The sister committee to HMC-4 in API is COMA (Committee on Measurement Accountability)
Jose Lopez (Chevron Corporation) - Chairman
Juri Koern (Shell) - Vice Chairman
Sally Goodson (API) – Secretary
COMA activities were reported as follow:
8.1 Standards published in 2012:
Ch 17.5 (EI HM64) Guidelines for Voyage Analysis and Cargo Reconciliation
3rd edition – published 4/12
Ch 17.9 (EI HM 49) Marine Measurement – Vessel Experience Factors
2nd edition – published 5/12
8.2 Standards under revision:
Ch 17.1 Guidelines for Marine Cargo Inspection, 6th edition
up for reaffirmation 3/2013, document currently under revision by API work group. (2 year extension granted by COPM) document currently under revision by API work group. Draft document being prepared. Ballot expected by Fall 2013.
Ch 17.6 (EI HM 66) Guidelines for Determining Fullness of Pipelines Between Vessels and Shore Tanks (2004 Rfmd 5/10)
Standard balloted within API and EI under separate ballots. API ballot passed, with one negative, which was reversed. EI ballot passed with one negative, which is currently being discussed.
All API and EI comments have been incorporated into standard and once EI negative is resolved, the changes will either be re-balloted to the SC or circulated for comment. Scope was changed and HS&E language added to accommodate comments from EI negative voter. Changes under review by the EI negative voter’s representative company.
Secretary’s note: EI negative has now been withdrawn. However, API consider that the extent of changes will require a second ballot. EI have not had sight of the modified document.
Ch 17.10.1 Measurement of Cargoes on Board LNG Carriers
The ISO document, ISO 10976 has been published within ISO.
It was decided at the COMA Spring 2012 meeting to adopt the ISO document back to API as Chapter 17.10.1. Paperwork for adoption is being developed with ANSI and document will be balloted to COMA during May 2013.
Ch 17.10.2 Measurement of Refrigerated and /or Pressurized Cargoes on Board Marine Gas Carriers, Part 2: Liquefied Petroleum and Chemical Gases (Rfmd 10/12)
Currently under revision by the work group.
8.3 Standards under Review
Chapter 17.12 – Procedure for Bulk Liquid Chemical Cargo Inspection by Cargo Inspectors – Due September 2013.
An SRRR for the revision of Chapter 17.12 was approved at the Fall 2012 COPM net meeting. A 2 - year extension for Chapter 17.12. has been requested from COPM, expected to be approved in May 2013. A work group has been reconstituted to begin to revise the standard.
Secretary’s note: As noted above this is a joint document and the EI recommended changes have been forwarded to the API group for consideration.
Chapter 17.3 – Guidelines for Identification of the Source of Free Waters Associated with Marine Petroleum Cargo Movements (due: September 2014)
Chapter 17.4 – Method for Quantification of Small Volumes on Marine Vessels (OBQ/ROB) (due: August 2014)
Chapter 17.8 – Guidelines for Pre-Loading Inspection of Marine Vessel Cargo Tanks (due: September 2014)
Chapter 17.11 – Measurement and Sampling of Cargoes on Board Tank Vessels Using Closed/Restricted Equipment (due: May 2014)
An ad-hoc group has been formed to review these standards and make a recommendation at the Fall 2013 COMA meeting regarding whether to open the documents for revision or to reaffirm.
8.4 COPM Activities
Ethanol/Gasoline Blend VCF Study
Phase I, II and III of Lab work for determining VCF’s for Ethanol and Gasoline blends is complete and has been reviewed. Data is being analyzed and it is anticipated that Chapter 11.3.4 will be balloted in the 3rd quarter of 2013.
Mercury Thermometer Reduction Program - Partnership with the EPA
Phase I of the field testing of alternatives is almost complete. Data expected to be analyzed by the Fall 2013 COPM meeting.
Phase II work group to develop testing protocols has been formed to begin to write protocol for finding alternatives to Mercury for calibration.
API 2013 Beijing Conference Fall 2013
3 – Tracks of Presentation and Exhibits:
Upstream
Downstream
Measurement
Liquid Measurement Training – 2 days
Date: September 9-13, 2013
Location: China World Hotel – Beijing China
Conference Topics to focus on what is new in API MPMS Standards: What new technologies and technics are being written in the existing standards and what new standards are being developed.
9.0 ISO DEVELOPMENTS
It was reported at the last meeting that the API and ASTM had withdrawn from ISO activities; API citing copyright and sanctions issues, and that both bodies had relinquished their TC28 secretarial duties (delegated from ANSI).
Responsibility for the main ISO TC28 committee - Petroleum products and lubricants and ISO TC28/SC2 - Measurement of Petroleum and Related Products has been passed back to ISO who have asked for other national standards bodies to take on the work.
BSI/EI are interested in the SC2 secretariat and the EI have asked STAC to provide funding to support this role so that an application can be made.
The EI review of ISO petroleum measurement documents is complete will form the basis of a work programme for TC28/SC2 when the committee reconvenes.
Secretary’s note: Since the meeting it has been confirmed that the Netherlands standards body, NEN with the support of the Brazilian body ABNT has taken over the secretariat of the main TC28 committee. Further, STAC have approved funding for the EI such that BSI/EI can now apply for the SC2 secretariat role.