Presentation on theme: "Colonial Pipeline Company Buster Brown January 26, 2005"— Presentation transcript:
1 Colonial Pipeline Company Buster Brown January 26, 2005 Challenges in Distribution of ULSD Observations From Colonial Pipeline ULSD TestColonial Pipeline CompanyBuster BrownJanuary 26, 2005
2 Topics Colonial overview Highway and Non-Road sulfur specification Observations from ULSD testPotential pipeline issues
3 Colonial Pipeline Profile 5,519 mile system from Houston to New York Harbor; operating since 1963Delivers more than 2.2 million bpd petroleum products from approximately 30 refineries to more than 250 terminals20 percent of all U.S. liquid product delivered by pipeline are handled by Colonial
4 All Off-Highway Diesel ~3400 ppmHighway500ppmAll Off-Highway Diesel>80%15 ppm<20% 500 ppm10/199306/200601/2010Highway + Nonroad Diesel Fuel Sulfur Specs*NR, L&M Diesel500 ppmNR 15 ppm6/20076/2010HWYNRL&M6/2014HHF ~3400ppmSmall & Credit6/2012Small &Credit ~500Small & Credit ~3400L&M 15ppm* This figure is intended to illustrate the timeline for the final highway and nonroad diesel fuel sulfur control programs.It is not drawn to exact scale. Refer to 40 CFR Part 80 for specific program dates.
5 Colonial Pipeline ULSD Test Test ObjectiveDetermine capability to successfully move ULSD through existing pipeline systemUse data to determine what physical and procedural modifications need to be made to ensure ability to transport ULSDUse test results to set sulfur specs at origins
6 ULSD Test DescriptionBoth batches originated into 36” distillate mainline at Baton Rouge and distributed along system to representative locations.1st Batch 140,000 BDestinationsBirmingham, ALAtlanta, GANashville, TNMacon, GAGreensboro, NC2nd Batch 144,000 BDestinationsBirmingham, ALAtlanta, GAGreensboro, NCBaltimore, MDNew York Harbor
7 ULSD Test Description (continued) Multiple product sequences; Gasoline, high- and low-sulfur diesel and kerosine leading the ULSD test batches.Over 1500 samples analyzed.Quantified trail-back of sulfur into ULSD batch from adjacent products.Quantified sulfur contamination from manifolds, valves, dead segments, and high sulfur tank bottoms.Used special protective operating procedures for test batch.
9 ULSD Test Observations “Successful” movement through system with sulfur increase of 6-8 ppmSize of product interface at head-end of batch was 1.5x to 2x normalTank farms resulted in largest contribution of sulfur increaseValve integrity, tank line, manifold and dead leg segments were primary sources of sulfur increaseSulfur analyzers are complex and difficult to maintainNormal cutting procedures (gravity) may be ineffective. Therefore need quick, accurate, on-line sulfur analyzers.
10 Test Conclusions Significant volume downgrade of ULSD (estimated to be 8% to 10% of total ULSD volume)Sulfur analysis equipment needs improvementContinued effort to understand and minimize tank farm issues
11 Formula for Developing Product Specification Sulfur SpecificationFormula for Developing Product SpecificationLegal Requirement ppmPLUSDownstream Enforcement Tolerance ppmMINUSTest Method Reproducibility ppm*MINUSTransportation Degradation to -8 ppm**Potential ULSD Specification at Refinery Gate = ppm* ASTM “round robin” results have a reproducibility range from 6-16 ppm.* *depending upon the number of tank farms
12 Product Movement Refinery to End User After refining, products must be shipped from the refinery to terminals where it can be loaded onto tanker trucks bound for gas stations, homes, businesses and airports.Terminal TankRefineryThird Party PipelineColonialIntermediateColonialOriginStublineMainlineColonialOriginMainlineRefineryTankColonialIntermediateStubline3rd PartyTankTerminal Tank
13 Possible Colonial Sulfur Specification If every step improves…IdealReceive into Colonial 7Upstream transfer system 2Colonial improves fromDownstream transfer systemReproducibility improves toTOTAL 18Based on our test, we may propose the following specs... (walk through the slide)The enforcement tolerance is not large enough to offset the test method reproducibility. This is a major contributor to the low spec. (which I will walk through in more detail on the next slide.)I feel the amount of transportation degradation is notionally typical of other common carrier systems. Due to its size, Colonial losses will be larger on an absolute basis, but are may be similar on a percentage basis.Again, I need to mention that these numbers do not include any change in sulfur that may result upstream or downstream of the pipeline.Therefore, even if transportation degradation is reduced the spec at refinery may not change.The specification is 17 ppm at retail.
14 ULSD Pathforward for Colonial Implement special operating procedures for ULSD handling.Evaluate construction of additional tanks and modify manifolds. - May require ULSD surcharge to existing diesel tariffs.Concern with upstream and downstream facilities handling.Work with customers to determine “appropriate, workable” specification at refinery gate.May not supply all diesel grades to all markets.