1. What is Bunkering? Bunkering – Filling ships and barges with fuel used to power ships Bunker – Gets its name from the containers on ships and in ports that it is stored in – In the days of steam they were coal bunkers but now they are bunker-fuel tanks Bunker fuel – Technically any type of fuel oil used aboard ships

2. Fuel Bunkering Market Bunker Fuel Brokers – Work as independent agents brokering fuel between two parties Shore Supplier (terminal) – Might sell fuel to the barge company or directly to ship Barge/Bunkering Company – Transfers fuel to the ship owners – May or may not own oil Ship Owners – Purchases fuel from barge owner or shore supplier

3. Tank Strapping / Gauging

4. Bunker Sources of Error Bunker Tank 1 cm tape error = 0.25% error for a 4m level Potential savings on 9000 tonne stem $7,500

5. °C Bunker Sources of Error – Temperature °C Placement of temperature probe is critical for optimum volume to mass conversion Is the temperature measurement representative of total bunker? Average calculation vs single point Savings can be significant 2°C error on temp (avg) = 0.1% error for a 991g/l product at 50°C Savings $$$

6. Tank A Tank B DDDD Sources of Error - Density & Stratification Tank Stratification Errors of 0.25% to 1.5% possible

7. Consider a Bunker with 5% Entrained Air Mass for Mass A direct mass measurement will give a negligible error Mass for Mass A direct mass measurement will give a negligible error Volume for Uncertainty A volume measurement will give a + 5% error Volume for Uncertainty A volume measurement will give a + 5% error – $654/MTn x 3000tns = $1.96M/Bunker (A 1% volume error due to air = ~$20,000) – Drive Gain can be used to indicate presence of entrained gas

8. Bunker Sources of Error – Volume to Mass Conversion Manual Conversion formula: Actual volume > net volume > weight(vac) > weight(air) =(?)% calc error Volume-based Measurement Automated BDN Direct Mass Measurement

9. Custody Transfer Processes Custody transfer is simply an agreement between two Parties: Buyer and Seller However, the Bunkering process is not so simple

10. Bunker Fuel Custody Transfer Make sure “I’m getting what I’m paying for” Eliminate idle/downtime due to refueling operation Reduce the number of billing discrepancies and arbitration claims Repeatable, accurate measurement – globally accepted Reasonable capital costs to support operations Lifecycle cost considered for operational efficiency Operating Vessel Barge Fuel Storage Terminal Bunkering custody transfer needs are the same as other industries

11. Bunker Fuel Custody Transfer Challenges During Validation – Volume to mass conversions – Temperature compensations – Stacked uncertainties of reference system – Product quality concerns Actual Operational Challenges – Inherent differences between tank measurements – Entrained gas (Air bubbles) – Product holdup in barge pipelines – Placement of meter for buyer’s confidence – Potential for backflow through meter Operating Vessel Barge Fuel Storage Terminal

12. Fuel Bunkering Custody Transfer Main Line Storage Barge Refinery Pump Station Container Vessel

13. Fuel Bunkering Custody Transfer Fuel Tank To Engines Barge On Barge Deck Below the Deck of Vessel Shipping Vessel Hose