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MEASUREMENT SYSTEMS




            BUNKER FUEL BLENDING
                            Presented by Paul Bagnall
                          Regional Sales Manager - Africa




RAISING PERFORMANCE. TOGETHERTM
MEASUREMENT SYSTEMS




INTRODUCTION
• WE CAN SAVE YOU $12 PER TONNE USING BLEND OPTIMISATION

     • Who We Are

     • Current Market

     • Cost of Poor Accuracy Blends

     • Compare Blender Types

     • Which Blender Works Best For You

     • Success Story
MEASUREMENT SYSTEMS




Cameron




     Products to control, process, measure and compress liquid and gas


•   Headquartered in Houston, TX      •   $ 5 + Billion Annual Revenue
•   175 Years Continuous History      •   15,500 + Employees
•   11 Operating Divisions            •   260 + Locations Worldwide
•   50 + Strong Product Brands        •   70% of Business Outside of U.S
MEASUREMENT SYSTEMS



Cameron has built a sustainable, global manufacturing, sales and
service network with local employees, expertise and focus*.
Angola                             Argentina                          Brazil      Canada




France                             Germany                            Indonesia   Italy




Kazakhstan
Houston                            Malaysia                           Nigeria     Oman




Romania                            Saudi Arabia                       Singapore   United Kingdom




 *Select locations from more than 260 Cameron locations around the world
MEASUREMENT SYSTEMS




JISKOOT
• $19 Million (UK) Company
• High Accuracy Measurement/Control Specialist
• Global Installed Base
• Sales & Service
• 40 +Years Experience
• Sit On All Standards Committees
MEASUREMENT SYSTEMS




WHY BLEND ?
• The objective is to blend a low value, low specification product with
 a high value, high specification product to maximise the sale price
 and improve the quality of the lower specification product

     • Deliver an Accurate Volume/Mass

     • Product Which Meets Specifications & Environmental Regulations

     • At the Lowest Cost

     • In the Quickest Time

     • With the Maximum Flexibility
MEASUREMENT SYSTEMS




CURRENT MARKET CONDITIONS


• Fluctuating Crude And Feedstock Prices
• Increasing Concern Over Quality And Quantity
• Growth Of SECA‟s
• Customers Are Disputing Deliveries
• Improved Customer Measurement – Not Necessarily Used Correctly
• Increased Use Of Blended Fuels
• Need For Improved Validation Of Quality
• High Volume Low Margin Market
• Must Be Lowest Cost Producer
• Efficiency Wins!
MEASUREMENT SYSTEMS




CURRENT MARKET CONDITIONS

Amendments to MARPOL Annex VI Approved in Oct 08

 Global Cap Reduced to 3.50% from 1 Jan 2012
 (S)ECA - 1% in 2010 and 0.1% by Jan 2015
 0.50%, effective 1 Jan 2020, subject to a feasibility review by 2018.
– Should 2018 review reach a negative conclusion, effective date would
default to 1 Jan 2025

Proposed Fuel options aimed at reducing emissions
– Sox / Nox
– PM
– Consequential impact on Co2 and Global impact
MEASUREMENT SYSTEMS




Ideal Bunker Blending Facility
Highest Accuracy



Highest Flexibility



Quickest Blending/Loading Rates



Widest Range of Viscosities



Highest Provable Quality



Lowest Waste or Give Away
MEASUREMENT SYSTEMS




INACCURACY

  What does it cost the Bunker Blending Industry?
MEASUREMENT SYSTEMS




                                          Target 380 cSt



                                       Average over 2 years



                                          255 cSt!!
Source : Chalmers University, Sweden
MEASUREMENT SYSTEMS




Houston – April 2009
450
400           397
                                                        Average = 299 cSt
350
300
250
                                                        Viscosity @ 50°C Tested
200    204
       171                                              Viscosity "Give-Away"
150
100
 50
  0
      1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49
-50
MEASUREMENT SYSTEMS




INACCURACY

What does it cost the Bunker Blending Industry?

Feedstock : 630cSt HFO & 5cSt GO

To Blend 380cSt IFO Requires 5.8% Gas Oil
To Blend 255cSt IFO Requires 10.7% Gas Oil


Assumptions :
630cSt HFO Costs $280 / MT
5cSt GO Costs $530 / MT
(Bunkerworld 30/04/09)
MEASUREMENT SYSTEMS




INACCURACY
What does it cost the Bunker Blending Industry?
100 MT 380cSt IFO = 94.2 MT 630cSt HFO @ $280 / MT = $26,376
  +                  5.8 MT 5cSt GO @ $530 / MT    = $ 3,074
Total Cost                                         = $29,450

100 MT 255cSt IFO = 89.3 MT 630cSt HFO @ $280 / MT = $25,004
+                   10.7 MT 5cSt GO @ $530 / MT    = $ 5,671
Total Cost                                         = $30,675

Difference = $1,225 / 100 MT
           = $12.25 / MT

Your Annual Tonnage =250,000 MT ?

Your Annual Savings = $3,062,500 ?
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?
   HFO Tank                      MGO/MDO
                                   Tank
     Lightest


     630 cSt                         5cSt


    Heaviest

      95%                            5%

       Tank/Ratio Blending Is NOT Accurate
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?

IN-LINE BLENDING

Ratio Control
The components are metered and
controlled by flow or weight




Trim Control
The blended output is continuously
analysed and adjusted by viscosity
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?

RATIO CONTROL
The blend controller produces a „set-point‟
 for each stream based on the component
 ratio set in the recipe by the operator
The „set-point‟ for each stream is compared
 to the signal from the flow meter (volume or
 mass)
The control loop is closed by a control valve
 (or a speed controlled pump) to ensure that
 the set-point is maintained irrespective of
 changes in overall blend rate
The accuracy of the final blend is a direct
 function of the selection and accuracy of the
 flow meters used
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?
RATIO CONTROL
 Typically Used In Mechanical Blenders

 Slow To React – Poor Control

 Recipe Flaws

 Poor Accuracy

 Affected By Feedstock

 No Compensation Ability

 Static Mixer

 Pressure Drop
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?
RATIO CONTROL WITH VISCOSITY CONTROL


              Static Mixer             V        T

 Static Mixer – “Folds” Rather Than “Forces”
 Viscometer In Line – Not Stable Environment
 Not At Reference Temperature
 Temperature Correction Set For One Oil
 Maximum Pressure Drop
 Limited Turn Down
 Limits Feed Stock
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL

The blend controller produces a „set-point‟
                        initially produces a „set-point‟
 for each stream based on the component ratio set
 in the recipe by the operator
 ratio set in the recipe by the operator
The „set-point‟ for each stream is compared to
 the signal from the viscometers (volume or
 to the signal from the flow meterand flow meters
 and is
 mass) immediately adjusted and compensating
The control loop is closed by a control valve to
 ensure that controlled viscosity is maintained
 (or a speed the correctpump) to ensure that
 irrespective is maintained irrespective rate
 the set-pointof changes in overall blend of
The accuracy of the finalrate is tightly
 changes in overall blend blend
The accuracy of the final blend is ameters and is
 controlled by the viscometers, flow direct
 constantly the selection the accuracy
 function of monitored by and controller. of the
 Themeters used
 flow controller ensures that end product is on
 spec at all times
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL
 Used In Latest Technology Blenders

 Fast To React – Excellent Control

 Compensates For Recipe Flaws

 Extremely High Accuracy

 Compensates For Feedstock Changes

 Whole Blend “On Spec”

 Jet Mixing (No Pressure Drop)
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL
                   Operator Friendly „Windows Style‟ Prompts
                   Reliable
                   Multi-level Security
                   Remote Start/Stop
                   Recipe Management
                   Expandable
                   SCADA Option
MEASUREMENT SYSTEMS




HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL

                    Standard Blender Software
                    Full DCS Integration
                    Provides Reporting
                       Batch
                       Volume
                       Viscosity
                       Density
                       Sulphur
MEASUREMENT SYSTEMS




HOW WILL IT WORK FOR YOU ?
ADVANCED CLOSED LOOP CONTROL
 Blending Costs Reduced by $12 per Tonne
 Viscosity Corrected to Reference Temperature
 Blender Can Bulk Load Products
 Accurate Volume Corrections to Reference Temperature
 MARPOL / ISO 8217 Compliance
 Sulphur Content of Blend Calculated
 Recipe Management with Manual Overide
 Configurable Alarms
 3 Security Levels
 Fully Flexible System
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES
BUNKER BLENDER – SOUTH AMERICA
•Flow
•400 – 3000 M³/Hr
•Target Recipe
•375cSt
•During Commissioning
 • Ratio
    – 50%
    – 26%
    – 24%
 • HFO - 10480cSt
 • HGO - 208cSt
 • MDO -12.5cSt
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES
BUNKER BLENDER – SOUTH AMERICA
 •Initial Run
   • Ratio              20% REDUCTION IN MDO
    – 55.0% - 23.5% - 21.5%
    – MDO Reduction of 3.5%
 •Final Product
  • Ratio
     – 57.1%
     – 23.6%
     – 19.3%
 •Reduction In MDO
  • 24% - 19.3%
     – 4.7%
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES

               •Self Contained Trailer Mounted Blender

                            •Middle East


                                •200 M³/Hr

                                •Pre-Programmed &
                                 Configurable Blends
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES



                         • Barge Mounted Blender
                         • North America
                         • 500 M³/Hr
                         • Pre-Programmed &
                          Configurable Blends
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES




                         • 2 – Jetty Mounted
                          Blenders
                         • South America
                         • 2500 Bbl/Hour
                         • Viscosity Trim
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES
                         • Barge Mounted Blender
                         • Europe




                           • 1200 M³/Hr
                           • Pre-Programmed &
                            Configurable Blends
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES
                         • Quay Mounted Blender
                         • Namibia




                           • 30 M³/Hr
                           • With Viscosity Trim &
                            Sampling Capabilities
MEASUREMENT SYSTEMS




RECENT SUCCESS STORIES
 •PDVSA                 2 Marine Bunker Blenders
 •PetroBras             5 Marine Bunker Blender
 •BP Marine             1 Marine Bunker Blender
 •UNOCAL                1 Marine Bunker Blender
 •Coastal Oil           1 Portable Bunker Blender
 •Texaco Panama         1 Marine Bunker Blender
 •Harbour Fuel Marine   1 Marine Bunker Blender
 •Patssa Panama         4 Marine Bunker Blenders
 •Bunkers Gibraltar     1 Barge Bunker Blender
 •Mueretta              1 Barge Bunker Blender
 •Fujairah Marine       1 Bunker Blender
 •Hangana SeaFoods      1 Bunker Blender
MEASUREMENT SYSTEMS




QUESTIONS ?




      THANK YOU

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Bunker Blending Presentation 1

  • 1. MEASUREMENT SYSTEMS BUNKER FUEL BLENDING Presented by Paul Bagnall Regional Sales Manager - Africa RAISING PERFORMANCE. TOGETHERTM
  • 2. MEASUREMENT SYSTEMS INTRODUCTION • WE CAN SAVE YOU $12 PER TONNE USING BLEND OPTIMISATION • Who We Are • Current Market • Cost of Poor Accuracy Blends • Compare Blender Types • Which Blender Works Best For You • Success Story
  • 3. MEASUREMENT SYSTEMS Cameron Products to control, process, measure and compress liquid and gas • Headquartered in Houston, TX • $ 5 + Billion Annual Revenue • 175 Years Continuous History • 15,500 + Employees • 11 Operating Divisions • 260 + Locations Worldwide • 50 + Strong Product Brands • 70% of Business Outside of U.S
  • 4. MEASUREMENT SYSTEMS Cameron has built a sustainable, global manufacturing, sales and service network with local employees, expertise and focus*. Angola Argentina Brazil Canada France Germany Indonesia Italy Kazakhstan Houston Malaysia Nigeria Oman Romania Saudi Arabia Singapore United Kingdom *Select locations from more than 260 Cameron locations around the world
  • 5. MEASUREMENT SYSTEMS JISKOOT • $19 Million (UK) Company • High Accuracy Measurement/Control Specialist • Global Installed Base • Sales & Service • 40 +Years Experience • Sit On All Standards Committees
  • 6. MEASUREMENT SYSTEMS WHY BLEND ? • The objective is to blend a low value, low specification product with a high value, high specification product to maximise the sale price and improve the quality of the lower specification product • Deliver an Accurate Volume/Mass • Product Which Meets Specifications & Environmental Regulations • At the Lowest Cost • In the Quickest Time • With the Maximum Flexibility
  • 7. MEASUREMENT SYSTEMS CURRENT MARKET CONDITIONS • Fluctuating Crude And Feedstock Prices • Increasing Concern Over Quality And Quantity • Growth Of SECA‟s • Customers Are Disputing Deliveries • Improved Customer Measurement – Not Necessarily Used Correctly • Increased Use Of Blended Fuels • Need For Improved Validation Of Quality • High Volume Low Margin Market • Must Be Lowest Cost Producer • Efficiency Wins!
  • 8. MEASUREMENT SYSTEMS CURRENT MARKET CONDITIONS Amendments to MARPOL Annex VI Approved in Oct 08 Global Cap Reduced to 3.50% from 1 Jan 2012 (S)ECA - 1% in 2010 and 0.1% by Jan 2015 0.50%, effective 1 Jan 2020, subject to a feasibility review by 2018. – Should 2018 review reach a negative conclusion, effective date would default to 1 Jan 2025 Proposed Fuel options aimed at reducing emissions – Sox / Nox – PM – Consequential impact on Co2 and Global impact
  • 9. MEASUREMENT SYSTEMS Ideal Bunker Blending Facility Highest Accuracy Highest Flexibility Quickest Blending/Loading Rates Widest Range of Viscosities Highest Provable Quality Lowest Waste or Give Away
  • 10. MEASUREMENT SYSTEMS INACCURACY What does it cost the Bunker Blending Industry?
  • 11. MEASUREMENT SYSTEMS Target 380 cSt Average over 2 years 255 cSt!! Source : Chalmers University, Sweden
  • 12. MEASUREMENT SYSTEMS Houston – April 2009 450 400 397 Average = 299 cSt 350 300 250 Viscosity @ 50°C Tested 200 204 171 Viscosity "Give-Away" 150 100 50 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 -50
  • 13. MEASUREMENT SYSTEMS INACCURACY What does it cost the Bunker Blending Industry? Feedstock : 630cSt HFO & 5cSt GO To Blend 380cSt IFO Requires 5.8% Gas Oil To Blend 255cSt IFO Requires 10.7% Gas Oil Assumptions : 630cSt HFO Costs $280 / MT 5cSt GO Costs $530 / MT (Bunkerworld 30/04/09)
  • 14. MEASUREMENT SYSTEMS INACCURACY What does it cost the Bunker Blending Industry? 100 MT 380cSt IFO = 94.2 MT 630cSt HFO @ $280 / MT = $26,376 + 5.8 MT 5cSt GO @ $530 / MT = $ 3,074 Total Cost = $29,450 100 MT 255cSt IFO = 89.3 MT 630cSt HFO @ $280 / MT = $25,004 + 10.7 MT 5cSt GO @ $530 / MT = $ 5,671 Total Cost = $30,675 Difference = $1,225 / 100 MT = $12.25 / MT Your Annual Tonnage =250,000 MT ? Your Annual Savings = $3,062,500 ?
  • 15. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? HFO Tank MGO/MDO Tank Lightest 630 cSt 5cSt Heaviest 95% 5% Tank/Ratio Blending Is NOT Accurate
  • 16. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? IN-LINE BLENDING Ratio Control The components are metered and controlled by flow or weight Trim Control The blended output is continuously analysed and adjusted by viscosity
  • 17. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? RATIO CONTROL The blend controller produces a „set-point‟ for each stream based on the component ratio set in the recipe by the operator The „set-point‟ for each stream is compared to the signal from the flow meter (volume or mass) The control loop is closed by a control valve (or a speed controlled pump) to ensure that the set-point is maintained irrespective of changes in overall blend rate The accuracy of the final blend is a direct function of the selection and accuracy of the flow meters used
  • 18. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? RATIO CONTROL  Typically Used In Mechanical Blenders  Slow To React – Poor Control  Recipe Flaws  Poor Accuracy  Affected By Feedstock  No Compensation Ability  Static Mixer  Pressure Drop
  • 19. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? RATIO CONTROL WITH VISCOSITY CONTROL Static Mixer V T  Static Mixer – “Folds” Rather Than “Forces”  Viscometer In Line – Not Stable Environment  Not At Reference Temperature  Temperature Correction Set For One Oil  Maximum Pressure Drop  Limited Turn Down  Limits Feed Stock
  • 20. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? ADVANCED CLOSED LOOP CONTROL The blend controller produces a „set-point‟ initially produces a „set-point‟ for each stream based on the component ratio set in the recipe by the operator ratio set in the recipe by the operator The „set-point‟ for each stream is compared to the signal from the viscometers (volume or to the signal from the flow meterand flow meters and is mass) immediately adjusted and compensating The control loop is closed by a control valve to ensure that controlled viscosity is maintained (or a speed the correctpump) to ensure that irrespective is maintained irrespective rate the set-pointof changes in overall blend of The accuracy of the finalrate is tightly changes in overall blend blend The accuracy of the final blend is ameters and is controlled by the viscometers, flow direct constantly the selection the accuracy function of monitored by and controller. of the  Themeters used flow controller ensures that end product is on spec at all times
  • 21. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? ADVANCED CLOSED LOOP CONTROL  Used In Latest Technology Blenders  Fast To React – Excellent Control  Compensates For Recipe Flaws  Extremely High Accuracy  Compensates For Feedstock Changes  Whole Blend “On Spec”  Jet Mixing (No Pressure Drop)
  • 22. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? ADVANCED CLOSED LOOP CONTROL  Operator Friendly „Windows Style‟ Prompts  Reliable  Multi-level Security  Remote Start/Stop  Recipe Management  Expandable  SCADA Option
  • 23. MEASUREMENT SYSTEMS HOW DOES A BLENDER WORK? ADVANCED CLOSED LOOP CONTROL  Standard Blender Software  Full DCS Integration  Provides Reporting  Batch  Volume  Viscosity  Density  Sulphur
  • 24. MEASUREMENT SYSTEMS HOW WILL IT WORK FOR YOU ? ADVANCED CLOSED LOOP CONTROL  Blending Costs Reduced by $12 per Tonne  Viscosity Corrected to Reference Temperature  Blender Can Bulk Load Products  Accurate Volume Corrections to Reference Temperature  MARPOL / ISO 8217 Compliance  Sulphur Content of Blend Calculated  Recipe Management with Manual Overide  Configurable Alarms  3 Security Levels  Fully Flexible System
  • 25. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES BUNKER BLENDER – SOUTH AMERICA •Flow •400 – 3000 M³/Hr •Target Recipe •375cSt •During Commissioning • Ratio – 50% – 26% – 24% • HFO - 10480cSt • HGO - 208cSt • MDO -12.5cSt
  • 26. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES BUNKER BLENDER – SOUTH AMERICA •Initial Run • Ratio 20% REDUCTION IN MDO – 55.0% - 23.5% - 21.5% – MDO Reduction of 3.5% •Final Product • Ratio – 57.1% – 23.6% – 19.3% •Reduction In MDO • 24% - 19.3% – 4.7%
  • 27. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES •Self Contained Trailer Mounted Blender •Middle East •200 M³/Hr •Pre-Programmed & Configurable Blends
  • 28. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES • Barge Mounted Blender • North America • 500 M³/Hr • Pre-Programmed & Configurable Blends
  • 29. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES • 2 – Jetty Mounted Blenders • South America • 2500 Bbl/Hour • Viscosity Trim
  • 30. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES • Barge Mounted Blender • Europe • 1200 M³/Hr • Pre-Programmed & Configurable Blends
  • 31. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES • Quay Mounted Blender • Namibia • 30 M³/Hr • With Viscosity Trim & Sampling Capabilities
  • 32. MEASUREMENT SYSTEMS RECENT SUCCESS STORIES •PDVSA 2 Marine Bunker Blenders •PetroBras 5 Marine Bunker Blender •BP Marine 1 Marine Bunker Blender •UNOCAL 1 Marine Bunker Blender •Coastal Oil 1 Portable Bunker Blender •Texaco Panama 1 Marine Bunker Blender •Harbour Fuel Marine 1 Marine Bunker Blender •Patssa Panama 4 Marine Bunker Blenders •Bunkers Gibraltar 1 Barge Bunker Blender •Mueretta 1 Barge Bunker Blender •Fujairah Marine 1 Bunker Blender •Hangana SeaFoods 1 Bunker Blender