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Capacity Allocation Mechanism for
Licensed Petroleum Storage Facilities
Transnet Pipelines Tarlton Facility
(c/o Rustenburg and Ventersdorp Road, Tarlton, Krugersdorp)
(License Number PPL.sf.F3/19/2006)
September 2011
Commercial in Confidence
TABLE OF CONTENTS
Commercial in Confidence. Page i
All Rights Reserved.
TABLE OF CONTENTS
1. INTRODUCTORY TERMS AND CONDITIONS ...................................................................................... 1
1.1 Petroleum Storage Facility ........................................................................................................ 1 1.2 Pipeline Access ........................................................................................................................... 1 1.3 Uncommitted Capacity ............................................................................................................ 2
2. TARIFFS ............................................................................................................................................. 3
3. CONTRACTUAL TERMS AND CONDITIONS OF USE .......................................................................... 4
3.1 Storage Capacity ....................................................................................................................... 4 3.2 Scheduling and Planning .......................................................................................................... 5 3.3 Custody of Petroleum ................................................................................................................ 6 3.4 Product Dispatch ........................................................................................................................ 7 3.5 Petroleum Type and Quality Control ...................................................................................... 8 3.6 Slops Management .................................................................................................................... 9
4. TERMS AND CONDITIONS OF PAYMENT ......................................................................................... 10
4.1 General ....................................................................................................................................... 10 4.2 Invoicing ..................................................................................................................................... 10 4.3 Account Suspension ................................................................................................................. 11
5. TECHNICAL REQUIREMENT FOR ACCESS TO STORAGE FACILITIES ............................................. 12
6. PROCESS TO BE FOLLOWED TO REQUEST ACCESS ....................................................................... 13
6.1 Pre-Requisite .............................................................................................................................. 13 6.2 Existing Clients ............................................................................................................................ 14 6.3 Prospective Clients ................................................................................................................... 15
This document contains proprietary information and intellectual property, and may not be disclosed,
used or reproduced, stored in a retrieval system, or transmitted in any form or by any means,
electronically, mechanically, photocopying, recording, or otherwise without the prior written permission
of Transnet.
This document and the contents thereof may not be used by any other party for sourcing of
competitive proposals, as a basis for performing the work described herein, or for any other commercial
purpose, without the prior written permission of Transnet.
Copyright © Transnet 2011. All Rights Reserved.
INTRODUCTION
Commercial in Confidence. Page 1
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1. INTRODUCTORY TERMS AND CONDITIONS
1.1 Storage Facility
1.1.1 Transnet Pipelines (the Licensee) operates a licensed Petroleum Storage
Facility at Tarlton (corner Rustenburg and Ventersdorp Road, Tarlton, Krugersdorp –
license number PPL.sf.F3/19/2006) – herein referred to as the “Petroleum Storage
Facility”.
1.1.2 The Petroleum Storage Facility is an extension of Transnet Pipeline’s national
pipeline network and is essentially used for the distribution of liquid fuel products and
to enable the efficient operation of the pipeline between Durban and
Johannesburg. Products can be stored at this facility for a limited period only (refer
below to Chapter 2 – Tariffs, for the applicable NERSA approved storage tariffs)
1.1.3 Transnet Pipelines owns and operates a number of storage tanks at the
Petroleum Storage Facility. These tanks allow for a limited storage period to facilitate
the efficient handling of petroleum products prior to transfer to road or rail.
1.2 Pipeline Access
1.2.1 The Petroleum Storage Facility receives all fuel products exclusively via
pipeline delivery.
1.2.2 Any client who wishes to make use of the Petroleum Storage Facility for
petroleum storage of their fuel products requires pipeline access as a pre-requisite
for their participation at the Petroleum Storage Facility.
1.2.3 Pipeline access may be by means of a contractual agreement directly
between the client and Transnet Pipelines (Conveyance Agreement) or by means of
a contract with a host company who has a contractual agreement with Transnet
Pipelines for the delivery of liquid fuel product to the Tarlton Petroleum Storage
Facility.
1.2.4 The terms and conditions of use - the service fees, tariffs and the process to
follow for establishing such a contractual agreement with Transnet Pipelines falls
outside the scope of this allocation mechanism. The client should engage with
Transnet Pipelines directly regarding the necessary procedures to follow to gain
access to the pipeline.
INTRODUCTION
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1.3 Uncommitted Capacity
1.3.1 Uncommitted capacity in the context of this document refers to the
“throughput capacity” and not to “storage capacity”. The Petroleum Storage
Facility offers storage for a limited period only.
1.3.2 Clients may use this allocation mechanism as a guideline for the allocation of
petroleum storage at the Tarlton facility. The document stipulates:
i. A tariff schedule
ii. The contractual terms and conditions for use of the facility
iii. Contractual terms and condition for payment
iv. Access to the Petroleum Storage Facility, and
v. The process to follow to request access
TARIFFS
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2. TARIFFS
2.1.1 The table below lists the currently NERSA approved tariffs for the Tarlton
Petroleum Storage Facility.
Tariffs as Approved by NERSA for the Tarlton Petroleum Storage Facility
Tariffs (c/l) 2011/12 2012/13
1 – 7 days 7.72 8.31
8 – 14 days 11.59 12.47
12 – 21 days 23.27 24.93
22 – 31 days 34.56 37.40
2.1.2 All Tariffs includes VAT
2.1.3 The 2011/12 tariffs are effective until 31st March 2012 where after the 2012/13
tariffs will apply
2.1.4 Transnet Pipelines will review these tariffs from time to time and apply for a
revised tariff from the National Energy Regulator (NERSA), according the
process prescribed by NERSA
2.1.5 On approval of a revised tariff structure, the revised tariff will be
communicated to all clients in writing, it will be available from the Licensee on
request and will be published on the energy regulator’s website
(http://www.nersa.org.za)
CONDITIONS OF USE
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3. CONTRACTUAL TERMS AND CONDITIONS OF USE
3.1 Storage Capacity
3.1.1 The Petroleum Storage Facility currently offers 28,600 m3 of workable capacity
as in the table below. The capacity per product grade is 11,200 m3 for 500
ppm Diesel and 17,400 m3 for 93 Octane Unleaded Petrol.
Tank No
Tank Capacity in
Litres
Volume below
Striker Plate
Unpumpable 5% Volume of Tank
Capacity in Litres
Total Transnet Pipeline
Stock holding
Working Capacity
m3
Diesel 500
A1 6,017,586 40,495 300,879 Total 600,668
5,600
A2 5,995,779 41,862 299,789 5,600
93 ULP
A3 5,188,388 34,605 259,419
Total 966,953
4,700
A4 5,187,293 35,516 259,365 4,700
A5 3.575,906 39,246 178,795 3,200
A6 3,568,770 30,492 178,439 3,200
A7 462,693 8,413 23,135 400
A8 460,129 7,711 23,006 400
A9 895,886 12,180 44,794 800
3.1.2 The assignment of product grades to tanks may change according to
requirements.
3.1.3 The Licensee owns all unpumpable - or dead stock in all product tanks.
3.1.4 The Client is not allocated segregated storage capacity. Each Client is
allocated a certain throughput volume according to the agreements entered
into with Licensee. The amount of volume in tank per product per client will
vary over time according to the volume of product received and dispatched
by the client.
3.1.5 A receiving tank’s volume is measured for quantity assurance purposes by
dipping before and after each delivery. Dip volume measurements are
compensated for differences in temperature or density through volume
conversion tables.
3.1.6 The exact volume delivered is measured electronically. The Petroleum
Storage Facility makes use of turbine flow meters, one for each product. A
meter prover upstream of the flow-meter proves the volume delivered. The
meter prover is calibrated for accuracy once every two years. The latest
certificate of calibration is included in Annexure C.
3.1.7 All measurements occur at standard temperature and pressure (20 °C, 101.325
kPa). The metering software compensates for differences in ambient
CONDITIONS OF USE
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temperature, atmospheric pressure and density when registering the volume
measurement.
3.1.8 The meter printed receipt (refer Annexure D) is deemed binding of the volume
received. Should a dispute arise, or a fault with the metering equipment be
suspected, the manual dipping measurements above will be agreed upon by
the parties and used.
3.2 Scheduling and Planning
3.2.1 The Petroleum Storage Facility keeps detailed stock progression records. Each
client’s allocated throughput volume is updated daily on product receipts
and product dispatches to keep track of the volume of each product in tank
allocated to each client.
3.2.2 Clients are required to remove their product from the facilities within 7 days
following official notification by the Licensee that the product has arrived at
the facility.
3.2.3 Failure to move product within the prescribed period above will incur a
penalty per litre of product as stipulated in the tariff schedule (refer chapter 2)
3.2.4 The client is responsible for all pipeline product receipt schedules and
capacity planning according to the terms and conditions as stipulated in their
agreement with Transnet Pipelines or their Host Company. This includes all
indicative and firm order planning (refer Annexure A for an example).
3.2.5 Transnet Pipelines will issue the Petroleum Storage Facility with an Operations
Notice of all planned deliveries one week in advance (see Annexure C for an
extract of an Operations Notice). The Operations Notice contains all relevant
information on all planned product receipts – source, Client, product, size of
product delivery, exact time delivery will start, duration of delivery.
3.2.6 The Petroleum Storage Facility will monitor its ability to take receipt of a client’s
product by pipeline. Should it be unable to take receipt of a product delivery,
the necessary remedial actions as stipulated in the Client’s agreement with
Transnet Pipelines for product deliveries and the necessary fees as applicable
(Transnet Pipeline Service Fees) will be applicable. The remedial actions to be
taken and fees applicable in such a case forms part of the Client’s
contractual agreement with Transnet Pipelines and falls outside the scope of
this allocation mechanism.
CONDITIONS OF USE
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3.3 Custody of Petroleum
3.3.1 Custody of all petroleum products transfers to the Licensee the moment that
the product passes from the pipeline through the turbine flow meters into the
Storage Facility.
3.3.2 Custody of petroleum products transfers to the Client the moment the product
flows through the dispatch flow meters for road and rail dispatches.
3.3.3 Any loss of product, or deterioration of product quality due to incorrect
operation of equipment or leakage or faulty equipment or faulty
maintenance of equipment or theft or fire, etc. that the Licensee experiences
for any product that it has custody of has to be replaced to the Client at the
Licensee’s expense.
3.3.4 Any loss of product, or deterioration of product quality due to incorrect
operation of equipment, by the Client’s operator, or leakage or faulty
equipment or faulty maintenance of equipment or theft or fire, etc. of all
product after it passed through the dispatch meters, thus in the custody of the
Client is the Client’s responsibility.
3.3.5 A detailed investigation of each incident will follow in which both the licensee
and client will be involved to determine any additional claims or remedial
actions to be taken by either party for each incident as the incident may
require.
3.3.6 The Licensee will perform a three monthly product reconciliation to determine
any surpluses or losses or product.
3.3.7 Product gains will be prorated to clients according to each client’s
throughput.
3.3.8 Product losses will be paid to the Client.
CONDITIONS OF USE
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3.4 Product Dispatch
3.4.1 Product is dispatched from the Licensee’s Storage Facility by road or rail.
3.4.2 All road orders are to be confirmed at least 24 hours in advance and the
necessary documentation lodged with Licensee’s representative. After the
24-hour deadline, orders may be cancelled, but no new orders may be
entered.
3.4.3 The Client’s transporters will arrive between 06:00 and 10:00 in the morning.
Transporters are matched with orders received. Where there is no transporter
for the applicable order, the order is automatically cancelled.
3.4.4 The Petroleum Storage Facility dispatches product by rail to Botswana.
3.4.5 All orders for rail dispatches (next week’s business) are to be lodged and the
necessary documentation submitted with the Licensee’s representative by the
Friday afternoon at 17h00 for the week starting the Monday after the following
Monday, that is the Friday a week before.
3.4.6 The Licensee is able to load a maximum of 36 rail tank cars per day, of which
18 are Diesel and 18 are ULP.
3.4.7 Rail orders are allocated to rail tank cars according to Client orders for rail
transport as far as possible. Where more next week’s business rail orders are
received than available rail tank cars, the next week business’ orders are
allocated by the Licensee pro rata the Client’s orders received.
3.4.8 Required rail tank cars are finalised, order numbers assigned and the orders for
rail tank cars sent to Transnet Freight Rail (TFR) for wagon allocation by
Tuesday at 17h00.
3.4.9 TFR will allocate available wagons, assign consignment numbers to the rail
tank cars according to the order numbers received and confirm consignment
numbers with matched order numbers with Licensee’s representative.
3.4.10 On arrival at the rail yard, consignment numbers and order numbers allocated
to rail tank cars are matched to the Licensee’s records before the rail tank
cars are shunted and loaded. The Client’s dispatched volume is updated with
the actual loaded.
3.4.11 A Client may cancel any pending rail order up until the Wednesday at 17h00
of the week before. The necessary documentation, stating the reason for the
cancellation needs to be submitted with the cancellation.
3.4.12 Licensee will attempt to match cancelled wagons to orders from the
remaining Clients on a pro rata basis if uncommitted orders are available.
3.4.13 All penalties in terms of cancellation of orders are compensated for in terms of
the impact it will have on a client’s ability to move their product within the
CONDITIONS OF USE
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prescribed period. Should a client fail to move their product within the
prescribed period (see 3.2.2), a higher tariff will apply.
3.5 Petroleum Type and Quality Control
3.5.1 All petroleum must adhere to South African National Standards (SANS),
specifically:
i. ULP 93 in accordance with SANS 1598: 2006 (metal free)
ii. LSD in accordance with SANS 342: 2006.
3.5.2 Product samples are taken hourly during a pipeline delivery and analysed at
Licensee’s laboratory on site. The tests performed are
i. Temperature,
ii. Density,
iii. Final Boiling Point,
iv. Flash Point and
v. X-Ray for Metal Content
3.5.3 The Licensee will perform the following tests as minimum quality requirement:
PRODUCT
MINIMUM QUALITY REQUIREMENTS
PRODUCT NAME and
CODE PROPERTY UNITS LIMITS
Automotive Diesel (Diesel)
Colour Straw Straw
Density @ 20ºC kg / litre 0,800 minimum
Flash point @ 101,325
kPa º C
62 min at Intake & 55 min at
Delivery (62 at KRO and
KPR)
Haze Rating Number 2 max
Sulphur content mg / litre
(ppm) 500 ppm max
93 Unleaded Petrol (ULP 93)
Colour Yellow Yellow
Density @ 20ºC kg / litre 0,710 to 0,785
Octane Rating N/A 93
Final Boiling Point º C 210 max at intake and 213
max at delivery
Residue Ml 2,0ml max
Haze Rating Number 2 max
Lead Content mg / litre
(ppm) 13 ppm max
Sulphur Ppm 500 max
Manganese Ppm 2 max
CONDITIONS OF USE
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3.5.4 After delivery, a representative sample of the tank content is taken for
analysis.
3.5.5 Samples are kept for 30 days.
3.5.6 If during a product injection analysis indicates that the product is off-
specification, the following process is followed
i. The pipeline operator is informed immediately and injection of the
product is stopped
ii. The relevant product tank is measured for volume content and a
representative sample is taken
iii. The representative sample is analysed and if off-specification the Client
and his supplier of the product is contacted
iv. An investigation will be launched to determine liability, if the Client is
found liable the Client will direct Licensee as to where to route the
product in the tank.
v. If the Licensee is at fault, it will direct the product as it sees fit and will
replace any lost volume to all clients as negotiated on a per client basis.
3.6 Slops Management
3.6.1 The Licensee takes possession of all slops the moment it enters the Storage
Facility.
3.6.2 Licensee may re-process the slop at its re-processing facilities to the lowest
degradable specification relevant to the product type.
3.6.3 The reprocessed product will be disposed by one of the following methods
i. Blending it back into delivered products to product specifications, at an
allowable blend rate agreed by all relevant authorities, according to the
pipeline operator’s standard operating procedure for blending
ii. In a market for un-resolvable reprocessed Intermixture
3.6.4 The table below indicated the current permissible blend ratio
Blend Table Product Diesel
500ppm
Diesel 50ppm
ULP 93
ULP 95
Name
Diesel – 500ppm - 1.0 0.25 0.2
Diesel – 50ppm 0 - 0.25
0.25
Jet A1 0 0 0 0
ULP 93 0.25 0.25 - 5.0
LRP 93 0.25 0.25 2.0
2.0
ULP 95 0.25 0.25 0.25 -
TERMS & CONDITIONS OF PAYMENT
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4. TERMS AND CONDITIONS OF PAYMENT
4.1 General
4.1.1 All clients must apply for credit using the Standard Credit Application for
Transnet Pipelines. This application is part of the application process
considered in Chapter 6.
4.1.2 Unless otherwise agreed between duly authorized representatives of the Client
and the Licensee respectively, the terms of payment to Licensee shall be by
means of electronic funds transfer (EFT) into Licensee’s Bank Account
4.2 Invoicing
4.2.1 The Licensee generates a weekly tax invoice for each client, which will serve
as an account for services rendered including other amounts due to Licensee
by the Client such as interest charges. The weekly tax invoices will be the:
i) VAT invoice; and
ii) Proof of the VAT payable.
4.2.2 At the end of the calendar month, the Licensee will make print outs of all
weekly invoices and generate a statement for each client. The paper
invoices and statement will be couriered to each client at month end.
4.2.3 All outstanding amounts debited to the Client’s account must be paid within
25 days, on or before the 25th day of the month following the date of
statement. Payments must be made into such account as Licensee may from
time to time notify the Client. When the 25th day is not a Business Day
payment is required on the last Business Day prior to the 25th day following the
date of statement.
TERMS & CONDITIONS OF PAYMENT
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4.3 Account Suspension
4.3.1 If the Client has made no payment for outstanding debt or no alternative
arrangements are made within three working days after notification by the
Licensee then the credit account will be suspended.
4.3.2 The Licensee shall inform the Client both telephonically and in writing of the
suspension of their account and that no dispatch orders can be processed
while the account is suspended.
4.3.3 Should a Client wish to re-activate their suspended account they must make a
payment directly into the Licensee’s bank account and fax or email through a
remittance advice.
4.3.4 Once the payment has been verified the Client is to re-perform the credit
application (extension) process.
ACCESS TO STORAGE FACILITY
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5. TECHNICAL REQUIREMENT FOR ACCESS TO STORAGE FACILITIES
5.1.1 Any transporter (road or rail) that enters Licensee’s premises has to be in
possession of a Safe Loading Pass (SAF), which is valid for one year.
5.1.2 If the transporter is not in possession of a SAF, it may complete an application
form to be certified accordingly. [Tarlton Road / Rail: New Road Haulage / Rail
Tank Registration Form, Document Number OPS-FORM-020, Annexure E].
5.1.3 On successfully passing the inspection, the transporter will be issued with the
relevant SAF, valid for one year, after which the registration process will be
repeated.
5.1.4 All Bulk Vehicle Operators has to undergo training in the following Unit
Standard (see Annexure F):
The National Certificate in Professional Driving: Convey Dangerous Goods
(In terms if Chapter VIII – Regulation 280 of The National Road Traffic Act 93 of
1996)
Theoretical and Practical Course, Unit Standard 123259:
Comply with Legal docs, Apply Safety Standards, Fire Fighting and Professional
Equipment.
5.1.5 Bulk Vehicle Operators entering Licensee’s facility need to have undergone
the “Contractor Employee SHE Induction”. (Refer Annexure G). The induction
is offered on site.
5.1.6 Road Transporters have to present the following information to gain entry into
Licensee facilities:
i. Transporter: Safe Loading Pass
ii. Transporter: Transport Permit – Storage, Use and Handling of Flammable
Liquids and Substances, issued by Local Municipality (Annexure H)
iii. Transporter: Pressure Test Certificate (Annexure I)
iv. Transporter: Motor Vehicle License and Roadworthy Certificate
v. Transporter: Tarlton Road Haulage Vehicle Pre-Entry Inspection [OPS-
DISTLIST-001, Annexure J]
vi. Bulk Vehicle Operator: Training Certificate as contemplated above
vii. Bulk Vehicle Operator: Contractor Employee SHE Induction
viii. Bulk Vehicle Operator: Driver’s License and certified copy of Identity
Document
5.1.7 Documentation requirements for rail Transporters:
i. Safe Loading Pass
ii. Pressure Test Certificate
iii. The necessary consignment documentation
ACCESS TO STORAGE FACILITIES
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6. PROCESS TO BE FOLLOWED TO REQUEST ACCESS
6.1 Pre-Requisite
6.1.1 Any client who wishes to make use of the Petroleum Storage Facility must
have access to the Transnet Pipeline network for delivery of product to the
Petroleum Storage Facility
6.1.2 The application process for access to the pipeline falls outside the scope of
this guideline. The client has to engage with Transnet Pipelines directly re the
necessary process to follow.
6.1.3 In the event of prospective clients not having direct access to the pipeline but
making use of a Host company, prospective clients must make the agreement
with their Host Company for pipeline deliveries available with their application.
ACCESS TO STORAGE FACILITIES
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6.2 Existing Clients
6.2.1 It is advised that all clients wishing to engage with Transnet Pipelines for
allocation of uncommitted capacity at the Tarlton Petroleum Storage Facility
engage electronically via email with the Transnet Pipelines Commercial
Manager: Operations, Transnet Pipelines prior to applying through the official
channels.
6.2.2 Existing clients should submit:
i. A 12-month forecast of additional volume movement by road per
product and per destination
ii. A 12-month forecast of additional volume movement by rail per product
and per destination
iii. A 12-month forecast of volume intake into the Petroleum Storage Facility
by pipeline
iv. A motivation as to why they require additional capacity
v. Any other information that may assist Transnet Pipelines to gauge the
client’s additional throughput volume requirements
6.2.3 The Commercial Manager: Operations, Transnet Pipelines will advise the client
as to any additional information that may be required.
6.2.4 Once all documentation has been received the Commercial Manager:
Operations, Transnet Pipelines will review the application and provide
feedback to the client within 14 days of receiving the application for an
extension of the client’s throughput volume.
ACCESS TO STORAGE FACILITIES
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6.3 Prospective Clients
6.3.1 It is advised that all clients wishing to engage with Transnet Pipelines for
allocation of uncommitted capacity at the Tarlton Petroleum Storage Facility
engage electronically via email with the Transnet Pipelines Commercial
Manager: Operations, Transnet Pipelines prior to applying through the official
channels.
6.3.2 All clients seeking to utilise the Petroleum Storage Facility must be registered as
a Wholesaler of Petroleum Products as required by the Petroleum Pipelines
Act, 1977 (Act No. 120 of 1977)
6.3.3 Prospective clients should submit:
vi. A 12-month forecast of volume movement by road per product and per
destination
vii. A 12-month forecast of volume movement by rail per product and per
destination
viii. A 12-month forecast of volume intake into the Petroleum Storage Facility
by pipeline
ix. Any other information that may assist Transnet Pipelines to gauge the
client’s throughput volume requirements
6.3.4 The Commercial Manager: Operations, Transnet Pipelines will advise the client
as to any additional information that may be required.
6.3.5 The Client should complete the Standard Credit Application Form (Transnet
Pipelines) – see Annexure K.
6.3.6 Annexure K, page 2 lists all the supportive documents that should be
submitted with the application form.
6.3.7 Original copies of the Credit Application Form together with all the supportive
documentation as well as all the commercial information contemplated
above (6.3.3 and 6.3.4) are to be submitted in a sealed envelope, attention
the Commercial Manager: Operations, Transnet Pipelines, either by mail to
Transnet Pipelines, PO Box 3113, Durban, 4000;
or by hand to Transnet Pipelines, 202 Anton Lembede Street, Durban, 4001
6.3.8 The Commercial Manager: Operations, Transnet Pipelines will review the
application and inform the prospective client on any additional information
required.
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6.3.9 Once all information has been received, the Client will be issued with a letter
stating that Transnet Pipelines had received the application and all supportive
information.
6.3.10 The Client will receive feedback from Transnet Pipelines re the status of its
application within 30 days from the date of the letter above confirming
receipt of the application and all supporting documentation.
6.3.11 Based on the information received, Transnet Pipelines will perform a credit risk
analysis on the Prospective Client to determine whether its financial
performance meets the required financial criteria.
6.3.12 Transnet Pipelines will perform an external credit assessment on the
Prospective Client credit profile; the Prospective Client must provide a letter
granting Transnet Pipelines the authority to do so.
6.3.13 Dependent on the results of the Prospective Client’s credit analysis, a Bank
Guarantee, the value of which will be determined by Transnet Pipelines, may
have to be provided by the Prospective Client. (The format of the Bank
Guarantee will be provided by Transnet Pipelines)
ANNEXURES
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ANNEXURES
ANNEXURE A
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1. FORECASTS, NOMINATION AND SCHEDULING
Forecasts
Shipper shall provide the Carrier with Indicative Nomination forecast
volumes for three month as detailed in the SHIPPER MANUAL,
Section 7: Nominations and Scheduling Sequence of Events.
Shipper shall provide, on request from the Carrier, a bi-annual forecast of
intended volumes to be transported in the Main Pipeline. The
forecast data shall include Product grade, Intake Point, Delivery
Point and volume per year.
The Shipper shall ensure that the Carrier is informed of relevant plans for
maintenance, tests, shut-down, temporary periods of
decreased/increased intake or deliveries and the time and
duration for such events, as soon as such information is available.
The Carrier shall inform the Shipper of programmes for planned
maintenance, shut-downs, tests and any other activities related to
the Main Pipeline Network which could affect the Intake Point
availability and/or the Delivery Point availability or otherwise
influence delivery Shipper’s product.
Nomination and Scheduling
Shippers desiring to inject Product shall furnish Nominations and receive,
after Carrier completed Scheduling, Operations Notices for use of
the Shippers Entitled Capacity according to the process, criteria
and method described in the SHIPPER MANUAL, Section 7,
Nomination and Scheduling.
The scheduled time and location for Product Intake and Delivery will be
determined by Carrier's transportation and Delivery obligations to
its Shippers and by the necessity of economical use and efficient
operation of Carrier's facilities.
Carrier will assume no liability for its inability to maintain schedules or
comply with Shipper's Delivery requests when caused by
operational or scheduling problems, excess demand, delays and
other problems encountered in pipeline operations.
Product will be accepted for Intake during the Nominated Intake Cycle
subject to the successful scheduling of the Nomination.
The scheduled lead time between Intake and Delivery could be up to 21
days.
The Carrier will determine the number of scheduled Deliveries per
Nomination (Supplier, Product, Delivery Point, Consignee, Cycle),
unless otherwise agreed the standard will be one Delivery per
Cycle.
ANNEXURE A
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Carrier may schedule Product to be delivered any time during the
Delivery Cycle and the interval between deliveries will not
necessarily be 7 days.
Scheduling of an Intake of Product from Accumulator tanks will be
subject to rules in Section 13, Minimum Order and Batch Size.
Product in the MPP Pipeline will be fungible as stated in Section 19,
Product Specifications. Carrier may substitute and deliver Product
of the same specification as the Product shipped with product
from different Sources.
1.1 Nomination and Scheduling Sequence of Events
1) Consignees shall enter 3 months Indicative Orders forecast on the
Carrier’s ERP Portal.
2) Firm Monthly Orders are entered by the 25th of the month before
Intake takes place. Suppliers and Shippers shall review these orders to
verify that is within the volumes agreed between Consignee, Shipper
and Supplier.**
3) The Consignee edits the Firm Weekly Orders on a Tuesday and
submits before 14:00 for the following week’s Intakes.*
4) If the Consignee is not the same Party as the Shipper or Supplier the
Consignee must submit the Nominations before 12:00 on a Tuesday,
Shipper should then check the Nominations and submit to the Carrier
before 14:00 on the Tuesday.*
5) The Carrier checks the Nomination against allocated and available
capacity.
6) The SAP Portal does not allow users to enter Nomination Volumes
greater than their Entitled Capacity. If Shipper’s total of the
submitted Nomination volumes is equal to the Shippers entitled
capacity the Carrier’s will inform the Shippers if additional capacity is
available. The Shipper will be allowed, if the Carrier increases the
Entitled Capacity setting in the SAP Portal temporarily, to increase the
Nomination volume if agreed with the Carrier.
7) If Shipper’s total of the submitted Nomination volume is less than
Shipper’s Entitled Capacity, the available capacity will be offered to
other Shippers.
8) Only Consignees will be allowed enter Nominations on the SAP Portal,
Consignors/Shippers and Suppliers can approve submitted
Nominations.
ANNEXURE A
Commercial in Confidence. Page 20
All Rights Reserved.
9) The Carrier will schedule the Intake to meet nominated demand.
Scheduling for Intakes during the following week will be completed
by close of business on the Thursday.*
10) After the weekly scheduling is completed on the Thursday an
Operations Notice is generated and distributed to Shippers and
Intake and Delivery Point operating staff. The Operations Notice
contains scheduled Intakes and Deliveries information for the next 10
days until the end of the next Cycle.
11) Training on interpretation of the Operations Notice including slug
numbers will be provided on acceptance of new Shippers.
12) The Carrier will issue updated daily Operations Notices on Mondays,
Tuesdays and Fridays after schedules have been updated.
* Cut of times for submission of monthly and weekly Nominations specified
above are relevant for normal working weeks, Carrier may inform the Shipper
of changes to these dates for a specific cycle if there are events such as
public holidays that influence the normal working days of a week.
* * The Supplier in the SAP Portal is the Party that will be instructed to
physically inject product .i.e. Back to back supply arrangements are not
accommodated in the SAP Portal.
1.2 Criteria for Acceptance of Nominations
1) Minimum Order Size
a) See Section 13
2) Nomination Submission On-Time
a) Unless otherwise specified by the Carrier, weekly Nominations
agreed by Shippers and Suppliers, should be submitted before 14:00
on Tuesdays of the Cycle prior to the Cycle that the Product is
required to be injected into the Main Pipeline.
3) Valid Intake Point and Delivery Point
a) The Intake Point and Delivery Point should be on a valid
schedulable route. See Section 6.
4) Within Agreed Capacity Entitlement Limits
ANNEXURE A
Commercial in Confidence. Page 21
All Rights Reserved.
a) A valid Agreement should be in place with the Carrier and
nominated volumes should be within the agreed limits.
5) Ability to Receive Deliveries
a) Delivery facilities should have sufficient tank capacity to take the
Delivery in one Slug.
6) Shipper Should Have Clearance from Finance Department
1.3 Nominations Method – Carrier’s Ordering Partal Interface
1.3.1 All Parties shall use Carrier’s ERP Ordering Portal to enter, submit
and amend Nominations.
1.3.2 The SAP Portal can be accessed through the internet.
1.3.3 Training on the use of the Portal will be provided by the Carrier
upon acceptance of new Shippers and for new users of existing
Shippers.
1.3.4 Existing Shippers shall ensure that new users are versed in the
processes, concepts and terminology used in daily pipeline
related business before the users are sent for SAP PORTAL
training.
1.3.5 A user will be registered to use the SAP Portal after receiving the
training.
1.3.6 Users may only use their own User ID and password to log on to
the SAP Portal system.
1.3.7 Users must ensure that they have alternative/backup access to
the internet if their corporate connection or 3G connection is
down. Internet connectivity issues will not be accepted as an
excuse for late submission of Nominations.
1.3.8 If a user can access the internet but cannot access the SAP
PORTAL the Carrier must be informed immediately.
ANNEXURE A
Commercial in Confidence. Page 22
All Rights Reserved.
RE-CONSIGNMENT AND AMENDMENDS TO ORDERS
In the event Shipper or its Consignee does not have adequate facilities
available to receive Products from the Main Pipeline, at the time, any Slug
or portion thereof arrives at a Delivery Point to which it is consigned and
cause the Main Pipeline flow rate to be slowed down or stopped, the
Shipper may levy a Charge as detailed in Section 27.
Re-consignment by Carrier
In the event Shipper or its Consignee does not have adequate facilities
available to receive Products from the Main Pipeline without
delay, at the time, any Slug or portion thereof arrives at a Delivery
Point to which it is consigned, Carrier may:
1) If the product cannot be delivered within 5 hours, re-consign said
Slug or any undelivered portion thereof to a Delivery Point where
facilities are available to receive it and Carrier shall not be liable for
any of the following which may occur by reason of such re-
consignment:
a) damage,
b) loss in transit,
c) or loss in storage,
d) loss in profit
2) Such Re-consignment shall have the same effect as though
requested by Shipper and Shipper shall be instructed by the Carrier
to request the amendment as per agreed procedure.
3) Shipper shall pay transportation charges from Intake Point to actual
final Delivery Points as well as any additional costs that the Carrier
incurs during the Re-consignment.
ANNEXURE A
Commercial in Confidence. Page 23
All Rights Reserved.
Requested Amendment by Shipper
Provided that it is operationally feasible - Shipper may, on agreed
procedure of Amendment to Order, request to the Carrier, and
subject to operating conditions of the facilities of the Carriers,
allow a Shipper to amend:
1) Delivery Point and Nominated Volume for Delivery,
2) the Consignee designated to take Delivery of the Shippers Products.
The Carrier shall use reasonable endeavours to meet such request.
A Nomination that is submitted after the cut-off time described in
Section 7.2 shall be regarded as an Amendment.
Shipper shall request Amendment to Orders as detailed in SHIPPER
MANUAL, Section 8, and Amendment to Orders.
Service Fees for Amendments may be levied as detailed in Section 27.
1.4 Amendment to Orders Process
1) The Consignee (on behalf of the Shipper) shall request the
Amendment verbally, and send an accompanying e-mail with the
Amendment request details.
2) The Carrier will confirm verbally and by e-mail that the Amendment
cannot be accommodated or that it will be accepted once entered
into the SAP PORTAL.
3) If the Amendment involves a new line item in the SAP PORTAL for the
requested Delivery Point or Consignee, the relevant Consignee must
create the line item.
4) The Consignor/Shipper and Consignee shall release the Amendment
request, where after the Carrier will accept it if it was as agreed
verbally.
5) If the Amendments occur within the prescribed cut off time (8am-
12am – Mondays, Tuesdays and Fridays) a new Operations Notice will
be generated after the schedules were updated.
6) If Amendments occur outside the prescribed cut off times (12am-
8am – Wednesdays, Thursdays, Saturdays and Sundays) the Carrier
will inform the Facility of the Amendment to the Operations Notice.
Any Amendments should also be communicated to Facility by the
Party who requested the Amendment.
ANNEXURE B
Commercial in Confidence. Page 24
All Rights Reserved.
ANNEXURE B: Operations Notice
ANNEXURE B
Commercial in Confidence. Page 25
All Rights Reserved.
ANNEXURE C
Commercial in Confidence. Page 26
All Rights Reserved.
ANNEXURE C: Calibration Certificate for the Transnet pipe line Bi-
Directional Prover
ANNEXURE D
Commercial in Confidence. Page 27
All Rights Reserved.
ANNEXURE D: Meter Printed Receipt
ANNEXURE D
Commercial in Confidence. Page 28
All Rights Reserved.
ANNEXURE E
Commercial in Confidence. Page 29
All Rights Reserved.
ANNEXURE E: Application for the registration of a new Road Haulage
Vehicle, Driver or Rail Tank Car at Tarlton
ANNEXURE F
Commercial in Confidence. Page 30
All Rights Reserved.
ANNEXURE F: The National Certificate in Professional Driving: Convey
Dangerous Goods
ANNEXURE G
Commercial in Confidence. Page 31
All Rights Reserved.
ANNEXURE G: Contractor Employee SHE Induction Confirmation Form
ANNEXURE H
Commercial in Confidence. Page 32
All Rights Reserved.
ANNEXURE H: Transport Permit, Storage, Use and Handling of Flammable
Liquids and Substances
ANNEXURE I
Commercial in Confidence. Page 33
All Rights Reserved.
ANNEXURE I: Pressure Test Certificate
ANNEXURE J
Commercial in Confidence. Page 34
All Rights Reserved.
ANNEXURE J: Tarlton Road Haulage Vehicle Pre-Entry Inspection
ANNEXURE K
Commercial in Confidence. Page 35
All Rights Reserved.
ANNEXURE K: Standard Credit Application Form (Transnet Pipelines)
(The 16 page credit application form is attached herewith)
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