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LEADERS IN RISK ENGINEERING
AND EHS SOLUTIONSAN ISO 9001:2015 CERTIFIED CONSULTING ORGANISATION
Tending towards operational excellence in Oil Terminals – Using Process Safety as a key tool
Prepared by:
Ramesh Ramalingam K, Associate Vice President; Nagarajan R, Senior General Manager
Cholamandalam MS Risk Services Ltd, India
PRESENTER’S PROFILE
▪ Graduate Mechanical Engineer with Post Graduate
Masters degree in Industrial Safety
▪ Over 17 years experience in the field of Risk Consulting
▪ Specializes in areas of Process Safety and Logistics Risk
Management and presently heads these divisions at
Chola MS Risk
▪ Approved Safety Auditor – DGFASLI, Govt. of India
▪ ISO 45001 lead certified auditor
▪ Executed numerous projects in the areas of H&S and
process safety across varied industry sectors ranging
from complex oil and gas installations to engineering
industries and service sectors in more than 7 countries.
▪ Presented a number of papers in the field of Process
Safety in national / international seminars.
Mr. Ramesh Ramalingam K
Associate Vice President
Cholamandalam MS Risk Services Ltd
Tending towards operational
excellence in Oil Terminals
–
Using Process Safety as a key tool
INTRODUCTION
▪ Oil Terminals play a vital role in the business of handling and transportation
of the final hydrocarbon liquid products.
▪ In October 2009, a major fire blazed in Jaipur terminal
• Jaipur Oil Terminal Fire in India on 29th Oct 2009
• 11 person killed and 45 persons Injured
• Leakage from MS Tank valve resulted in
leakage for 75 min
• Fire continued for 11 days
▪ In the wake of this accident, many terminals have understood the sense
of vulnerability and need for focus on process safety.
5
▪ In India, an exhaustive integration of process safety during detailed
engineering stage is still a work in progress.
▪ As the terminal operations expand, ignoring the principles of process safety
such as facility siting is also one of the major concern. Where separation
distances are not met, suitable engineering controls need to be initiated to
mitigate the risk.
▪ Implementation of engineering recommendations during the operational
stage of a terminal not only results in shut down of the terminal but also is
extremely cost and time intensive, forcing the terminal operators to
operate the terminals with mitigation measures.
CHALLENGES
ANALYSIS OF PROCESS SAFETY STUDIES
▪ Detailed analysis of 42 terminals which were in operational stage
▪ Basis – HAZOP and QRA studies
▪ 1600 recommendations
▪ The life of terminals was ranging from more than 60 % of normal design life
(greater than 20 years) and to the recently built terminals.
6%
12%
4%
4%
1%
20%30%
8%
2%
1%
2%
4%
6%
HAZOP Recommendations
Active Fire Protection
Asset Integrity
Hydrocarbon leak detection and alarm system
Emergency Management
Facility Siting
Inherent Design
Instrumentation
Operational Discipline
Mobility
Occupational Health
Passive Fire Protection
Relief Systems
Operating Procedures
ANALYSIS OF HAZOP RECOMMENDATIONS
60% 62%
51% 53%
70%
58%
40% 38%
49% 47%
30%
42%
ACTIVE FIRE PROTECTION ASSET INTEGRITY HYDROCARBON LEAK
DETECTION AND ALARM
SYSTEM
EMERGENCY
MANAGEMENT
FACILITY SITING INHERENT DESIGN
Trends for old and relatively new terminals
Old terminals (More than 20 years of operation) Relatively new terminals (Less than 20 years of operation)
Old terminals seem to have major gaps which if addressed during conceptual stage of project, would
have made operations simpler and resulted in reduced efforts for achieving operational excellence.
Age of the terminals Vs Process safety aspects
Age of the terminals Vs Process safety aspects
54%
65%
95%
85%
76%
40%
62%
46%
35%
5%15%
24%
60%
38%
INSTRUMENTATION OPERATIONAL
DISCIPLINE
MOBILITY OCCUPATIONAL
HEALTH
PASSIVE FIRE
PROTECTION
RELIEF SYSTEMS OPERATING
PROCEDURES
Trends for old and relatively new terminals
Old terminals (More than 20 years of operation) Relatively new terminal (Less than 20 years of operation)
Older terminals have challenges in active and passive fire protection, facility siting, asset integrity and
operational discipline aspects
Top 10 Process Safety Areas impacting
Operational Excellence
❶ INHERENT DESIGN
Key aspects for operational excellence:
✓ Selection of transfer pumps (API, double mechanical seals) and availability of stand by pumps
✓ Selection of electrical fittings based on Hazardous Area Classification (HAC) and updating the HAC.
✓ Configuration of storage tank inlet/outlet piping valves like ROSOV, MOV.
✓ Collection sump/pit for wagon siding, transfer pump houses and tank farm, which is then routed to Oil Water Separator (OWS)
✓ Online density meters for improving the reliability during changeover of product, mass flow meters for pipeline transfer operations
✓ Double isolation valves for gauges, transmitters, sample points in transfer pump houses
✓ Surge study analysis to understand the sudden closure of manual/ automated valves in the pipeline transfer operations
✓ ESD pushbuttons integration in wagon siding, transfer pump house, tank farm area
58 % 42 %
Terminals >20 years Terminals <20 years
20 % HAZOP 25 % QRA
Gaps in Inherent Design
❷ASSET INTEGRITY
Key aspects for operational excellence:
✓ Selection of metallic braided loading and unloading hoses, increasing the frequency of
inspection for based on the usage and practice to discard the hoses after 2 years
✓ Inspection of pipelines, storage tanks when there is change in service
✓ Corrosion management program, Long Range Ultrasonic Test for underground tanks
✓ Identification of dead legs and provision of Thermal Shut-off Valve to prevent over
pressurisation
✓ Adoption of flange management practices as per best practices like ASME B31.4/31.3
✓ Post Weld Heat Treatment (PWHT) for pipes/ piping welding where Ethanol is handled
✓ Adoption of practices like gasket management, spare valve philosophy (for OWS dyke)
✓ Predictive maintenance (like vibration test) of transfer pumps
62 % 38 %
Terminals >20 years Terminals <20 years
12 % HAZOP 30 % QRA
Gaps in Asset Integrity
❸OPERATIONAL DISCIPLINE
Key aspects for operational excellence:
✓ Opening of expansion valves after wagon decantation operation
✓ Capping of Ethanol handling hoses to avoid ingress of moisture
✓ Periodic sampling of OWS for oil, grease, Volatile Organic Compounds (VOC),
Chemical Oxygen Demand (COD) and Biological Oxygen Demand (BOD)
✓ Effective communication practices (recording) with other stake holders when
combined operations need o be carried out
✓ System of valve tagging and display of desired valve positioning in field for reference
✓ Minimising the presence of operators at the transfer pump houses
65 % 35 %
Terminals >20 years Terminals <20 years
8 % HAZOP 8 % QRA
Gaps in Operational Discipline
❹ INSTRUMENTATION
Key aspects for operational excellence:
✓ Redundant level controls for the storage tanks (H, HH, HHH), provision of radar gauge
and servo gauge (SIL rated). Ideally the tank level control system to be SIL rated.
✓ Automation system for terminal based on the ullage selected, involving the tank gradient along with the parcel logic
✓ Provision of low pressure switch for the transfer pumps suction and high pressure switch
at pump discharge, interlock mechanism to trip pump and shut off discharge valve
✓ Provision of differential pressure indicators on strainers/ filters in transfer pump suction/
discharge
✓ Provision of overfill protection system to stop truck loading pumps
✓ Monitoring of the storage tank dyke valve positioning
54 % 46 %
Terminals >20 years Terminals <20 years
30 % HAZOP 16 % QRA
Gaps in Instrumentation
❺ACTIVE FIRE PROTECTION
Key aspects for operational excellence:
✓ Reviewing adequacy of the water network when major changes occur in the terminal
✓ When thermal radiation is impacting the public, provision of water curtains to minimise
the thermal impact to public
✓ Water sprinkler system for wagon siding, gantry areas
✓ Provision of Medium Expansion Foam Generators (MEFG) for the OWS collection pits
✓ Replacement of fire stench with fixed sprinkler system around the storage tanks
✓ Provision of automatic actuated rim seal failure detection and extinguishing system for
floating roof tanks
60 % 40 %
Terminals >20 years Terminals <20 years
6 % HAZOP 6 % QRA
Gaps in Active Fire Protection
❻ HYDROCARBON LEAK DETECTION AND ALARM SYSTEM
Key aspects for operational excellence:
✓ Provision of point type detection at the drain sumps, dyke
✓ Provision of open path detector at the manifold area
✓ Annunciation of Hydrocarbon detector panel
✓ Integration of detectors with the transfer pumps
51 % 49 %
Terminals >20 years Terminals <20 years
4 % HAZOP 8 % QRA
Gaps in HC Leak Detection & Alarm System
❼OPERATING PROCEDURES
Key aspects for operational excellence:
✓ Incorporation of valve sequencing and operating conditions in the Operating
Procedures
✓ Use of sign off checklist to ensure proper sequencing of valve operations in the transfer
pump house
62 % 38 %
Terminals >20 years Terminals <20 years
6 % HAZOP -
Gaps in Operating Procedures
❽ EMERGENCY MANAGEMENT
Key aspects for operational excellence:
✓ Developing the response procedures when the operations needs to be carried out with the neighbouring facilities
✓ Conducting of public awareness programs for the public about products being
handled at the terminal and emergency evacuation procedures
✓ Provision of emergency shutdown valves at strategic locations like transfer pump
houses for ease of isolation
53 % 47 %
Terminals >20 years Terminals <20 years
4 % HAZOP 1 % QRA
Gaps in Emergency Management
❾ FACILITY SITING
Key aspects for operational excellence:
✓ Checking the occupancy of occupied buildings and ensuring the minimum
occupancy for building being affected by thermal radiation or over pressure
✓ Analysing the impact of fire water pump house and fire water storage tanks after any
major expansion
✓ Blast proofing the control room
70 % 30 %
Terminals >20 years Terminals <20 years
1 % HAZOP 7 % QRA
Gaps in Facility Siting
❿ RELIEF SYSTEMS
Key aspects for operational excellence:
✓ Reviewing the sizing of relief valves as design standards gets updated for assurance
✓ Provision of silica gel in the vents for Ethanol storage tanks
✓ Adequacy of the relief valves for emergency vent also as per American Petroleum
Institute (API) 2000
40 % 60 %
Terminals >20 years Terminals <20 years
4 % HAZOP -
Gaps in Relief Systems
IMPLEMENTING PSM IN INDIAN TERMINALS – IMPACT OF PHA
In Indian terminals, the 5 key PSM elements that require significant focus are presented
below. It is clear that a robust PHA process integrated at the design stage and reviewed
systematically at operations stage drives process safety excellence.
Process Knowledge
Management
Process Hazard Analysis
Operating Procedures
Asset Integrity and
Reliability
Management of Change
THANK YOU
Cholamandalam MS Risk Services Ltd.
Parry House, 4th Floor, No.2, NSC Bose Road,
Chennai – 600001, INDIA
Phone: +91(44) 3044 5620-30
Fax: +91(44) 3044 5550
Toll Free#: 18002001991
Our Offices:
Chennai I Mumbai I New Delhi I
Bangalore I Gurgaon I Pune I
Kuwait I Singapore (Partner Offices)
Email: inquiry@cholams.murugappa.com
www.cholarisk.com
http://training.cholarisk.com
ABOUT CHOLA MS RISK SERVICES
25
Chola MS Risk is a 50:50 joint venture between the INR 329 Billion Murugappa Group of India
and Mitsui Sumitomo Insurance Group of Japan.
The Murugappa Group founded in 1900 is one of India’s largest diversified
conglomerates, with 28 business and 32,000 employees in 234 cities.
Mitsui Sumitomo Insurance Group, Japan is one of the largest insurance
groups in the world & biggest in Asia, carrying out overseas businessthrough an international network of 42 countries and regions
▪ Two decades of experience in Risk Engineering & Safety Solutions
▪ More than 200 Safety Professionals
▪ Executed over 8500 risk consultancy projects
▪ Spanning 42 industrial sectors world wide
SCOPE OF OUR RISK ENGINEERING SERVICES
Our expertise blends with clients’ technical requirements, resulting in a spectrum of servicesacross the lifecycle of a project from the conceptualizing stage till decommissioning.
We Partner with clients to manage the Risk Profitably
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