Transportation of OIL & GAS through Pipelines SCHEDULING OF CRUDE OIL/PRODUCT TRANSPORTATION,BATCHING,INTERFACE TRACKING,QUALITY ASSURANCE,VOLUMETRIC CUSTODY

Transportation of OIL & GAS through Pipelines

SCHEDULING OF CRUDE OIL/PRODUCT TRANSPORTATION ,BATCHING ,INTERFACE

TRACKING ,QUALITY ASSURANCE ,VOLUMETRIC CUSTODY TRANSFER & PIPELINE RECOVERY COST

IIPM GURGAON 10th JULY,2009

SMPL CRUDE SCHEDULING PACKAGE

PIPELINE SCHEDULING PIPELINE SCHEDULING

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.

Supply Chain Supply Chain

Crude availability to Refineries as per schedule

Making Products available to Marketing locations as per Schedule.

Least transportation cost and interface minimization

Batch- wise Crude / Products landed cost calculation

Challenges : Pipelines

• Demand forecastingAnnual: Product wise future growth Estimated % growth on last year actual data Monthly:Demand numbers received from field levelAny specific number received from individual Industry, Area etc.

Supply Plan ProcedureSupply Plan Procedure

• Demand Distribution Company demand data from field. Production data from Refineries. Product inventories from field. Finalized data for product imports. Optimize product distribution (primary

using crisplan model on least transportation basis.


• Review - Current month’s refinery production & consumption pattern.

• Estimation –

Opening inventory of next month.

Production numbers of indigenous refineries for next month.

Demand through demand forecasting model for next month.

Total import / Export of finished products for next month (Demand - Availability).

• Monthly distribution planning - company wise, Location wise, product wise, mode wise on minimum transportation cost basis so as to meet full demand of industry.


Supply Chain Planning ProcessSupply Chain Planning Process

DEMAND

FORECASTE

• MONTHLY /

QTRLY

• ANNUAL

DEMAND

FORECASTE

• MONTHLY /

QTRLY

• ANNUAL

CORPORATE PLANNING

CORPORATE PLANNING

DETAILED

LOGISTIC

PLANNING

DETAILED

LOGISTIC

PLANNING

REFINERY

PRODUCTION

PLANING

REFINERY

PRODUCTION

PLANING

IT DEPT

• TERM PURCHASE

• SPOT PURCHASE

IT DEPT

• TERM PURCHASE

• SPOT PURCHASE

Annual Targets (MOU/Internal) Annual pumping plan Monthly Targets Monthly pumping plan Daily Targets Daily pumping plan

Operations Targets

Projection of sales by Sales group at Marketing HO/State Offices/Field Offices

Processing and Distribution plan by Optimisation group at CO

Crude Indenting plan by Technical group at Refineries HQ

Crude procurement plan by IT group at CO Crude shipment plan by Shipping group at

Refineries HQ Pumping plan by Crude oil pipelines Pumping plan by Product pipelines

Operations Planning

1. BPO

2. IDCM

3. CO(OPT)

4. MOU/S TGT

5. Monthly meeting to plan pumping product / crude in the pipeline.

7. CMC

Planning ForumsPlanning Forums

Crude Purchase Distribution

Retailing Distribution Blending

Manufacturing

Supply Chain : PastSupply Chain : Past

DemandForecast ?

DistributionPlanning ?

What & where to Store and from where ?

What & WhereTo Make ?

What and How to Feed ?

Crude evaluation& Procurement ?

Supply Chain Present Supply Chain Present

CorporateCorporate

MDP PRODUCTMATHURA

(Ex MR)

DELIVERY PLAN AT

DELHI MEERUT RWR PMC/PBKRN

TOPS TOTAL

TMTs TKLS TKLS TKLS TKLS TKLS TKLS TKLS

74.6 MS-III 104.0 88.5 6.5 9.0 104.0

MS-II

19.9 SKO 32.0 9.0 9.0 2.0 12.0 30.0

51.7 ATF 65.0 65.0 65.0

25.0 HSD-II 30.0 11.0 19.0 30.0

100.2 HSD-III 121.0 106.0 15.0 121.0

271.4 TOTAL 352.0 269 30.5 11.0 23.0 19.0 350.0

Sample : Scheduling for a monthSample : Scheduling for a month

MDP; Marketing Distribution PlanMDP; Marketing Distribution Plan

Sample Scheduling Daywise for a monthSample Scheduling Daywise for a monthPUMPING

DELIVERIES

DATETIME(HRS

)PROD. QTY.

COMP TIME

DELHI MRT RWR KRN

FLOW

1 7.0 MS-III 16.0 42.6 18.6 16.0 450

2 18.6 SKO 4.0 27.4 3.4 1.0 450

3 3.4 ATF 16.0 30.1 6.1 16.0 600

4 6.1 SKO 1.5 9.4 9.4 0.5 450

5 9.4HSD-

III 30.0 73.3 1.3 30.0 470

6 1.3 SKO 1.5 4.6 4.6 0.5 450

7 4.6 MS-III 20.0 37.9 13.9 20.0 600

8 13.9 SKO 4.0 22.8 22.8 1.0 3.0 450

9 22.8 ATF 16.0 49.5 1.5 16.0 600

10 1.5 SKO 1.5 4.8 4.8 0.5 450

11 4.8 HSD-II 16.0 39.6 15.6 5.0 460

12 15.6HSD-III 30.0 79.4 7.4 30.0 470

13 7.4 SKO 1.5 10.8 10.8 0.5 1.0 450

14 10.8 MS-III 24.0 50.8 2.8 17.5 6.5 600

15 2.8 SKO 4.0 11.7 11.7 1.0 2.0 450

Sample Scheduling Daywise for a monthSample Scheduling Daywise for a month

PUMPING

DELIVERIES

DATE

TIME PROD. QTY. COMP TIME DELHI MRT RWR KRN

FLOW

16 11.7 ATF 19.0 43.3 19.3 19.0 600

17 19.3 SKO 1.5 22.7 22.7 0.5 450

18 22.7 HSD-II 14.0 53.1 5.1 14.0 460

19 5.1 HSD-III 31.0 58.5 10.5 24.0 7.0 580

20 10.5 SKO 1.5 13.9 13.9 0.5 1.0 450

21 13.9 MS-III 24.0 57.5 9.5 15.0 9.0 550

22 9.5 SKO 4.0 18.4 18.4 1.0 2.0 1.0 450

23 18.4 ATF 14.0 41.7 17.7 14.0 600

24 17.7 SKO 1.5 21.1 21.1 0.5 450

25 21.1 HSD-III 30.0 84.9 12.9 22.0 8.0 470

26 12.9 SKO 1.5 16.2 16.2 0.5 1.0 450

27 16.2 MS-III 20.0 49.6 1.6 20.0 600

28 1.6 SKO 4.0 10.5 10.5 1.0 450

1. Expected tanker arrival, quantity and type of crude as allocated in crude slate meeting.

2. Monthly process Nos. of each Refinery grade wise decide the flow rate in each section of pipeline .

3. Refinery gives parcel sizes of crude in accordance to process cycle. Keeping in view the monthly product distribution as decided in the SPM (Supply plan meeting).

4. Crude stock at all pipeline location and Refinery as of 1st of the month taken along with the line fill of various section of pipeline

Crude Oil SchedulingCrude Oil Scheduling

5. Minimum batch of various type of crude required at each refinery :

A B C

BH NIL 30 22

HS 35/70 75/80 44

LS 35 50/60 44

Fig. In Tkls.

Keeping in view, the above said data the day wise monthly schedule is made.

Existing Method:Existing Method:

6. Processing plan for July,

Vadinar

SPM Processing Plan for July'2K PumpableKoyali Mathura Panipat Total Vadinar Stk as on

Allocation 1.6.00BH 100 160 0 260 205 51LS 300 265 200 765 800 96HS 165 325 280 770 783 296

TOTAL 565 750 480 1795 1788 443Avg. Daily(t.kls) 22.5 29.8 18.9 71.3

Crude Oil SchedulingCrude Oil Scheduling

IBPIBP

• REFINERY DEMANDS• TANKER ETAs• CRUDE STOCKS

• LBTs• Refineries

• LINE FILL• FLOW RATES

STANDARD SCHEDULING

MODULE

STANDARD SCHEDULING

MODULE

• FEASIBLE BATCHES• BATCH DESTINATION

• Direct/ Partial direct pump• Partial strip• Partial/ full injection

• BATCH ETAs• CRUDE INTERFACE• OPTIMIZED PUMP COMBINATION WITH RPM• What-If analysis

• DRA Usage• Tank Adequacy

Crude MixCrude Mix

• LBTs COMPOSITION• REFINERY TANKS COMPOSITION

• PUMP STATUS• TANKS AVAILABILITY

• INITIAL COMPOSITION• LBTs• Refinery Tanks

• LINE FILL COMPOSITION



PIPELINE OPERATION ,INTERFACE MANGEMENT ,BATCH LENGTH,PIPELINE OPERATION ,INTERFACE MANGEMENT ,BATCH LENGTH,QUALITY OF PRODUCTS QUALITY OF PRODUCTS

TYPE ORIGINATINGPUMP STATION

PUMP STATION-CUM-DELIVERY STATION

TERMINALSTATION

SCRAPER BARREL

VALVE

TYPICAL SCHEMATIC FLOW DIAGRAMFOR PIPELINE SYSTEM

FROMREFINERY/STORAGEDEPOT

DELIVERY STATION

LEGEND

PUMPING UNIT (OPER ATING)

PUMPING UNIT (STANDBY)TANK FARM

SCRAPER BARREL

VALVES

PIPELINE OPERATION

INTERFACE MANAGEMENT:

In a product pipeline, multiple products are transported through a common pipeline. For this various products are pumped inside the pipeline one after another .

Since all the products packed inside the pipeline moves at very high velocity there bound to have some intermixing of products.

These intermixing of two adjoining product inside a pipeline is called INTERFACE.

To maintain the product quality the interface is normally blended in the inferior product

MS SKO HSD SKO ATF SKO HSD

HSD SKO MS SRN SKO ATF SKO HSD

PUMPING SEQUENCES IN A PIPELINEPUMPING SEQUENCES IN A PIPELINE

Sequence of Pumping I/ F between Base product in which I/ F is taken

SK-MS-SK SK & MS MSSK-HSD-SK SK & HSD HSD

SK – ATF – SK SK & ATF SKHSD – LDO – HSD HSD & LDO LDO

Product-A Product-BMixture volume

Mixed volume of product created in a pipeline between two different and adjacent product

-4.004.00NILHSD

NIL-NO LIMITNILSKO

NILNIL-NILATF

NIL2.02.0-MS

HSDSKOATFMS

I/ F CONTAMINATION % AGEBASE PRODUCTS

Allowable intermix of interface in various Base product

INTERFACE GENERATION


1.Interface is a mixed volume of product created between two different and adjacent products as they flow through the pipeline system.

2.Interfaces are features of all multi product pipeline system

3.A critical interface is the mixture generated between two significantly different products. One of which can seriously affect the properties of others.


5. Interface generation is dependent on the factors like Pipeline diameter, velocity of the flow, topography of the land, turbulent flow conditions and the type of products .

Length of Interface

Gravity of Product B

Gravity of Product A

Volume PumpedVolume Pumped

Gra

vit

yGra

vit

y

Interface (% meaning) = (50% of product A) + (50% of product B)

i.e. 2% interface in SKO / MS batch (batch length of MS 6000 Kls)

60 Klsof pure SKO can be mixed in MS.


DIFFUSION OF INTERFACE

1. For batch operations a specific volume of petroleum products is accepted for shipment .

2. The interface of adjacent product batches during any transportation can sometimes be mixed into one or both of the adjacent batches.

3. For interface from adjacent batches of different grades of the same product, such as regular gasoline, the mixture is typically blended into the lower grade.

4. This “downgrading” reduces the volume of the higher quality product.

DIFFUSION OF INTERFACE

5. Kerosene is maintained pure w.r.t. HSD and MS. SKO can be blended with MS and HSD.

6. No contamination of any product is allowed in ATF .

CALCULATION OF BATCH LENGTH

Depends on:- Type of product Destination of product Expected qty of I/F Tolerence limit of intermixing in mother product These batches are able to absorb the I/F at delivery end without

affecting

quality

Example:-

MS/SKO I/F generation say 100 KL => 50 SKO+50 MS

Tolerence limit of SKO in to MS= 1%(say)

Minimum batch length of MS say ‘x’

1% SKO means x*1/100=50 so, x=5000 KL.

If MS to be delivered at intermediate TOPs with I/F absorption at end stn,

then batch length of MS at source to be= 5000 Kl+ qty of MS to be

delivered to TOPs

Requirement of batch scheduling

Meeting Product demand in market To match /balance production at Refinery

and supply demand at ToPs including tankages capacity

Avoiding/Minimizing Tanker demurrage Optimizing Pipeline Operating Cost (-Less consumption of power & fuel)

A Good batch scheduler should be…

A good coordinator/ communicator Possess clear knowledge about logistics, health

of M/L & equipments A good negotiator / bargainer A good decision maker

Essence of batch scheduling:

Refinery Process Plan

Reqmt of Tanker berthing

Push / Pull

Elements of batch scheduling

Periodicity of review- daily - Ever dynamic Type of Crudes/Products- Requirement vis-vis

availability/Mkt demand Ref/Mktg safety stock/ minimum inventory norms Refy Process rate & process cycle ETAs of Tankers & Type of crude Line fill content/ batch sizes Rate of Pumping Product/Crude Stock & Ullage – Tank wise at all

locations- Refy, T-points, Mother stn

Elements of batch scheduling- contd… Pumping Capacity/ Engine availability & any

shutdown requirement M/L allowable op. pr de-rating if required on M/L

health ground/ M/L maintenance Minimizing T-Point booster running Maximizing batch length to minimize no of

interfaces Minimize line shutdown by varying flow rate from

minimum to maximum Maintaining purity of crude characteristics Delivering on specification products Any requirement of trial run by Ref for

establishing crude assy with new crude Conveying crude mix to Refinery before delivery

CHANGES IN KEY SPECIFICATIONS : MS

BIS 2000

BS-II Euro -III Eqv.

Euro -IV Eqv.

Reg. Reg. Prem. Sulphur, ppmw (max)

1000 500 150 50 50

RON, Min 88 88 91 91 95 Benzene, Vol% (max)

5 3 1 1 1

Aromatics, Vol% (max)

No spec. No spec. 42 35 35

Olefins, Vol% (max)

No spec. No spec. 21 21 18

CHANGES IN KEY SPECIFICATIONS : HSD

BIS-2000 BS-II EURO-III EURO-IV DENSITY @ 150C, KG/M3

820-860 820-860 820-845 820-845

SULPHUR, PPMW (MAX)

2500 500 350 50

DISTILLATION 95% Recovery 0C (Max)

370 370 360 360

CETANE NO. (MIN)

48 48 51 51

WATER CONTENT(% BY VOL-MAX)

0.05 0.05 0.02 0.02

Products Parameters : 1) Appearance, 2) Colour, 3) Copper strip corrosion, 4) Density at 150C, 5) FBP, 6) Flash Pt., 7) Smoke Pt., 8) Acidity, 9) Octane No., 10) Centane No., 11) Silver strip corrosion, 12) Conductivity, 13) Freezing Point, 14) Pour Pt.

SL.

NO.

PRODUCT CRITICAL PARAMETERS

01. MS Colour, Density, FBP, Sulphur, Octane No.

02. SK Colour, Density, FBP, Flash Pt., Smoke Pt.

03. HSD Colour, Density, Sulphur, Flash Pt.

04. ATF Colour, Density, Silver Strip Corrosion, Copper strip corrosion, Conductivity, Freezing Pt.

05. MTO Colour, Density, FBP, Flash Pt.

06. SRN Colour, Density, FBP.

CRITICAL OPERATING PARAMETERS

QUALITY CONTROL AT PUMPING /ORIGINATING STATION

Quality parameters of the products pumped through the pipeline are collected sufficiently before start of pumping. Pipeline accepts the product with sufficient positive cushion to take care of the quality offset during transit and may vary depending upon the delivery locations. Pipeline personnel at the originating pump station have been provided with parameter-wise checklist and normally do not accept the offered product/tank if found inferior. Exigencies are tackled by obtaining decision from the competent authority on case-by-case basis.

Quality parameters acceptable to pipeline are specified considering the available interface data, effect of interface blending, quality as obtained at the TOP and acceptable quality at the TOP. Inter divisional committee recommendations are the basis for most of the critical parameters. These may also vary depending upon the Tankage constraints at TOPs.

QUALITY CONTROL AT TOPS The pipeline operating personnel at TOPs strive to maintain the quality of the product delivered to the customer by obtaining and studying the quality parameters of all products reaching their station before the arrival of the product. They may, if required, control the interface absorption well within the limits based on the quality thus obtained. The pipeline operating personnel at TOPs compute the quantity of interface reaching their station and decide on the blending quantity based on the permissible blending ratios. Proper tracking and cutting of interface as per annualized guidelines and ensuring safe filling of the tanks within the safe filling heights constitute two of the major operational responsibilities.

The pipeline personnel at TOPs ensure smooth operation of the quality related gadgets like interface detectors, hydrometers, thermometers, SCADA (Supervisory Control And Data Acquisition) consoles by proactive maintenance. Sampling of tank products both before and after receipt and line products (continuously) is another important support aspect of quality control.

THE TOTALITY OF FEATURES AND CHARACTERISTICS OF A PRODUCT OR SERVICE THAT BEAR ON ITS ABILITY TO SATISFY STATED OR IMPLIED NEEDS.

THE TOTALITY OF FEATURES AND CHARACTERISTICS OF A PRODUCT OR SERVICE THAT BEAR ON ITS ABILITY TO SATISFY A GIVEN NEED.

QUALITY CONSISTS OF THOSE PRODUCT FEATURES WHICH MEET THE NEEDS OF CUSTOMERS AND THEREBY PROVIDE PRODUCT SATISFACTION.

QUALITY CONSISTS OF FREEDOM FROM DEFICIENCIES.

PRODUCT – OUT PUT OF ANY PROCESS

PRODUCT FEATURE – PROPERTY POSSESSED BY A PRODUCT.

CUSTOMER – IMPACTED BY PRODUCT. EXTERNAL OR INTERNAL.

CUSTOMER NEEDS – NEEDS TO BE MET.

PRODUCT SATISFACTION – FEATURES WHICH RESPOND TO CUSTOMER NEEDS.

CONFORMANCE TO SPECIFICATIONS/ REQUIREMENTS

PRODUCT DEFICIENCY – FIELD FAILURE, DESIGN CHANGES, LATE DELIVERY ETC.

PRODUCT DISSATISFACTION – A CONSEQUENCE OF PRODUCT DEFICIENCIES. CONSEQUENCE OF GREATER PRODUCT SATISFACTION FROM COMPETING PRODUCT.

QUALITY DEFINED KEY WORDS

PRODCUT QUALITY IS FUNCTION OF

PRODUCT QUALITY TO MEET

INTENDED USE (ENGINE

REQUIREMENT, FUEL NEED,

FEEDSTOCK REQUIREMENT

OR OTHER APPLICATIONS)

ENVIRONMENTAL

CONSIDERATIONS

STATUTORY REQUIREMENTS

COMPETING ALTERNATE

FUELS

UNIQUE SELLING

PROPOSITION

MARKET/CUSTOMER

REQUIREMENT

CRUDES PROCESSED

CRUDES PROCESSED

PROCESS CONFIGURATION

TECHNOLOGIES ADOPTED

METHOD OF PRODUCTION

TREATMENT PROCESSES

INTERMEDIATE STREAMS

BLENDED

OPERATING PRACTICES

CHEMICALS/ADDITIVES

ADDED

Oil Accounting &Reconciliation

• Carried out on a

• Monthly basis within Pipelines

•Quarterly basis with Customers

•MT basis

Loss/Gain = Output – Input – (Closing Stock –

Opening Stock) – Self consumption (if any)

Oil Accounting & Reconciliation

• Ouput

•Deliveries to customers

•Input

•Pumping into the pipeline system at the

originating station

•Stock variations of intermediate tanks only

considered

Oil Accounting & Reconciliation

OIL RECONCILIATION A COMPARISON OF OPENING AND

CLOSING BALANCES OPENING BALANCE CONSISTS OF QUANTITY PUMPED QUANTITY UNDER PUMPING OPENING LINEFILL CLOSING BALANCE CONSISTS OF QUANTITY DELIVERED QUANTITY UNDER DELIVERY CLOSING LINEFILL ALL QUANTITIES ARE VOLUMES AT 15

DEG C

OIL RECONCILIATION

Oil Reconciliation : Difference of following

A) Opening line fill+ quantity pumped +quantity under pumping

B) Closing line fill+ quantity delivered +quantity under delivery

Transit loss/gain =B-A

% transit loss/gain = (B-A)*100/A

OUT TURN FOR DELHI TK-4 OF MS / 94

OPENING DETAILS CLOSING DETAILS

DATE 24.07.2002 27.07.2002 TIME 15.15 Hrs 10.00 Hrs GROSS DIP IN CMS 127.2 876.5 WATER DIP IN CMS 0.0 0.0 TANK TEMP IN 0C 35.5 33.5 WATER TEMP IN 0C 35.0 31.5 SAMPLE DENS 0.731 0.732 DENS AT 150 C 0.7470 0.7452 VRF 0.9776 0.9797 VOL . IN KLS 1091.240 7122.719 GROSS QTY IN KLS. 1108.928 7134.779 ROOF CORRE. IN KLS 86.903 86.939 WATER QTY IN KLS 0.000 0.000 QTY AT NAT . KLS 1022.025 7047.840 QTY AT 150 KLS 999.132 6904.769 QTY IN MTS 745.253 5137.839 NET QTY KLS (NATU)) 6025.815 NET QTY KLS (150 C) 5905.637 NET QTY (MTS) 7392.586 NET WATER (KLS) 0.000 QTY AS PER METER 5987


PIPELINE ECONOMICSPIPELINE ECONOMICS

Financial analysis of a project is vital for assessing the viability of the project and hence provides valuable information to the decision-maker.

Financial analysis produces an estimate of the financial gains, which will accrue, to the investor after implementation of the project.

Economics of Pipelines

Financial analysis of capital investment proposals is carried out based on realistic set of assumptions duly considering present prices of input / output, market forces etc.

Determination of year-wise cash flows is the most crucial step of the financial analysis.

The cash flows are determined for three components namely:

a) Initial Investment

b) Operating Cash Flows

c) Terminal Cash Flows

Economics of Pipelines

THANKS

Documents

Transportation of OIL & GAS through Pipelines SCHEDULING OF CRUDE OIL/PRODUCT TRANSPORTATION,BATCHING,INTERFACE TRACKING,QUALITY ASSURANCE,VOLUMETRIC CUSTODY