TRANSPORTATION OF ULSD MAP SYSTEM TESTING: Transport and Station Observations and Recommendations January 26, 2005 TOMA – Diesel Fuel Marketers Seminar Nashville, TN TRANSPORTATION OF ULSD MAP SYSTEM TESTING


ULSD Timeline: ULSD Timeline 80% pool


Diesel Marketing - Low Sulfur or ULSD?: Diesel Marketing - Low Sulfur or ULSD? Who are your customers? What are your logistical capabilities – tanks, lines, dispensers? What are your supply options? What is your risk tolerance? Pricing? HOW DO YOU ENSURE PRODUCT QUALITY?


Light Product Distribution System Pre-Test Observations: Light Product Distribution System Pre-Test Observations Barges, Pipelines, Terminals, Transports have little or no experience in handling ultra low sulfur diesel product Protecting the sulfur quality of ULSD while transporting it presents a challenge as difficult as when handling Jet Fuel Industry has a new distribution challenge that has not been completely quantified. Additional transportation system testing and sharing of test data will be required. Industry will spend millions of dollars to make facility and procedural changes to our transportation systems to minimize the risk of sulfur contamination


Objective of MAP ULSD Testing: Objective of MAP ULSD Testing Evaluate the capability of barge, pipeline, terminal, transport and retail facilities to deliver ≤ 15 ppm ULSD to the retail customer.


MAP ULSD Testing Background: MAP ULSD Testing Background Barge transportation, loading and unloading operations Originating tank and manifold piping Pipelines from 6” through 20” – up to 500 miles in length Destination manifolds and tank piping Terminal Aboveground Storage Tanks Transport loading and unloading operations Retail Station Underground Storage Tanks Third party pipeline companies ability to move ULSD


Test Scenario ExampleGulf Coast to Louisville ~ 24,000 bbls ULSD ~250 samples : Test Scenario Example Gulf Coast to Louisville ~ 24,000 bbls ULSD ~250 samples (Gulf Coast) (Lexington, KY) (Louisville, KY)


Terminal Operations: Terminal Operations Observations & Recommendations


Observations - Terminal Operations : Observations - Terminal Operations Distillate aboveground storage tanks, after receipt of ULSD, showed indications of product (sulfur) stratification A single tank sample will not represent the overall sulfur level of the product in the tank Tank turns (heel mixing) for above ground storage tanks may not be effective for converting tanks to ULSD Header displacement tests indicate that dead leg piping will displace


Recommendations - Terminal Operations : Recommendations - Terminal Operations To obtain the sulfur level of ULSD in a tank, several samples at different liquid heights will be required Tanks must be emptied and have two turnovers, emptying the tank each time, before the tank can protect ULSD Contamination from dead legs remains a possibility. Each terminal must be thoroughly analyzed for dead leg contamination


Transport Operations: Transport Operations


Objectives of Transport Testing: Objectives of Transport Testing Determine the sulfur contamination impact of transport heels Establish if the transport type, flat vs. slope bottom, contributes differently to contamination


Transport Testing Background: Transport Testing Background Two scenarios included transport testing Louisville 4/16/04 Macon 5/31/04 Previous contents of the transports were jet fuel at 1425 ppm sulfur Transports were compartmented One loaded “as is” One drained down at rack prior to loading One flushed at rack prior to loading 300 gallons loaded in each compartment


Observations – Flat Bottom Transports : Observations – Flat Bottom Transports


Observations – Slope Bottom Transports: Observations – Slope Bottom Transports


Transport Operations Observations: Transport Operations Observations Transports need to be completely drained when switching from higher sulfur products to ULSD A flat bottom transport can present significant contamination issues when loading ULSD Sloped bottom transports had little if any contribution to contamination Draining compartments at the loading rack reduced flat bottom contamination Flushing compartments with ULSD prior to loading effectively removed any residual sulfur contamination in both transport types


Transport Operations Recommendations: Transport Operations Recommendations Transport operators will need to adopt procedures to protect ULSD quality Transport operators should consider complete drain down capability prior to loading ULSD More testing needs to be done


Retail & Station Operations: Retail & Station Operations


Objectives of Station Testing: Objectives of Station Testing Determine how stations can successfully convert to ULSD from low sulfur diesel Ascertain the impact of manifolded underground storage tanks Establish if/when product stratification occurs


Station Testing Background: Station Testing Background Louisville 4/16/04 Truck Stop A Truck Stop B Gas Station Minimized Inventories Macon 5/31/04 Truck Stop C Truck Stop D Normal Inventories Samples were pulled from each station before and after drops Top, middle, and bottom samples from each tank A nozzle sample (random dispenser)


Macon Station Tank Mixing: Macon Station Tank Mixing


Louisville Station Tank Mixing: Louisville Station Tank Mixing


Station Drop Volume Correlation: Station Drop Volume Correlation % Drop Volume = Volume of Load Delivered Total Inventory After Delivery


Station Mixing Calculations: Station Mixing Calculations Average sulfur content in UST before the drop Inventory in tank before the drop Volume of ULSD load Sulfur content of ULSD Linear mixing assumptions


Station Observations: Station Observations Mixing does occur across manifolded tanks Stratification in USTs can occur if the drop volume is less than 60% of the final UST inventory Multiple drops into different tanks promote better mixing Stations should be able to successfully provide ≤ 15 ppm with planning multiple drops into each tank


Station Recommendations: Station Recommendations Minimize inventory levels in tanks prior to receiving ULSD loads to minimize stratification Drop into each tank on site to promote mixing and quicker conversion Estimate number of loads necessary to convert a station using historical sulfur content, tank inventories, and site sales


CONCLUSION: CONCLUSION