Overview of Bunker Fuel Blending

1. MEASUREMENT SYSTEMS
BUNKER FUEL BLENDING
Presented by Paul Bagnall
Regional Sales Manager - Africa
RAISING PERFORMANCE. TOGETHERTM

2. MEASUREMENT SYSTEMS
INTRODUCTION
• WE CAN SAVE YOU $12 PER TONNE USING BLEND OPTIMISATION
• Who We Are
• Current Market
• Cost of Poor Accuracy Blends
• Compare Blender Types
• Which Blender Works Best For You
• Success Story

3. MEASUREMENT SYSTEMS
Cameron
Products to control, process, measure and compress liquid and gas
• Headquartered in Houston, TX • $ 5 + Billion Annual Revenue
• 175 Years Continuous History • 15,500 + Employees
• 11 Operating Divisions • 260 + Locations Worldwide
• 50 + Strong Product Brands • 70% of Business Outside of U.S

4. MEASUREMENT SYSTEMS
Cameron has built a sustainable, global manufacturing, sales and
service network with local employees, expertise and focus*.
Angola Argentina Brazil Canada
France Germany Indonesia Italy
Kazakhstan
Houston Malaysia Nigeria Oman
Romania Saudi Arabia Singapore United Kingdom
*Select locations from more than 260 Cameron locations around the world

5. MEASUREMENT SYSTEMS
JISKOOT
• $19 Million (UK) Company
• High Accuracy Measurement/Control Specialist
• Global Installed Base
• Sales & Service
• 40 +Years Experience
• Sit On All Standards Committees

6. MEASUREMENT SYSTEMS
WHY BLEND ?
• The objective is to blend a low value, low specification product with
a high value, high specification product to maximise the sale price
and improve the quality of the lower specification product
• Deliver an Accurate Volume/Mass
• Product Which Meets Specifications & Environmental Regulations
• At the Lowest Cost
• In the Quickest Time
• With the Maximum Flexibility

7. MEASUREMENT SYSTEMS
CURRENT MARKET CONDITIONS
• Fluctuating Crude And Feedstock Prices
• Increasing Concern Over Quality And Quantity
• Growth Of SECA‟s
• Customers Are Disputing Deliveries
• Improved Customer Measurement – Not Necessarily Used Correctly
• Increased Use Of Blended Fuels
• Need For Improved Validation Of Quality
• High Volume Low Margin Market
• Must Be Lowest Cost Producer
• Efficiency Wins!

8. MEASUREMENT SYSTEMS
CURRENT MARKET CONDITIONS
Amendments to MARPOL Annex VI Approved in Oct 08
������ Global Cap Reduced to 3.50% from 1 Jan 2012
������ (S)ECA - 1% in 2010 and 0.1% by Jan 2015
������ 0.50%, effective 1 Jan 2020, subject to a feasibility review by 2018.
– Should 2018 review reach a negative conclusion, effective date would
default to 1 Jan 2025
Proposed Fuel options aimed at reducing emissions
– Sox / Nox
– PM
– Consequential impact on Co2 and Global impact

9. MEASUREMENT SYSTEMS
Ideal Bunker Blending Facility
Highest Accuracy
Highest Flexibility
Quickest Blending/Loading Rates
Widest Range of Viscosities
Highest Provable Quality
Lowest Waste or Give Away

10. MEASUREMENT SYSTEMS
INACCURACY
What does it cost the Bunker Blending Industry?

11. MEASUREMENT SYSTEMS
Target 380 cSt
Average over 2 years
255 cSt!!
Source : Chalmers University, Sweden

12. MEASUREMENT SYSTEMS
Houston – April 2009
450
400 397
Average = 299 cSt
350
300
250
Viscosity @ 50°C Tested
200 204
171 Viscosity "Give-Away"
150
100
50
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49
-50

13. MEASUREMENT SYSTEMS
INACCURACY
What does it cost the Bunker Blending Industry?
Feedstock : 630cSt HFO & 5cSt GO
To Blend 380cSt IFO Requires 5.8% Gas Oil
To Blend 255cSt IFO Requires 10.7% Gas Oil
Assumptions :
630cSt HFO Costs $280 / MT
5cSt GO Costs $530 / MT
(Bunkerworld 30/04/09)

14. MEASUREMENT SYSTEMS
INACCURACY
What does it cost the Bunker Blending Industry?
100 MT 380cSt IFO = 94.2 MT 630cSt HFO @ $280 / MT = $26,376
+ 5.8 MT 5cSt GO @ $530 / MT = $ 3,074
Total Cost = $29,450
100 MT 255cSt IFO = 89.3 MT 630cSt HFO @ $280 / MT = $25,004
+ 10.7 MT 5cSt GO @ $530 / MT = $ 5,671
Total Cost = $30,675
Difference = $1,225 / 100 MT
= $12.25 / MT
Your Annual Tonnage =250,000 MT ?
Your Annual Savings = $3,062,500 ?

15. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
HFO Tank MGO/MDO
Tank
Lightest
630 cSt 5cSt
Heaviest
95% 5%
Tank/Ratio Blending Is NOT Accurate

16. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
IN-LINE BLENDING
Ratio Control
The components are metered and
controlled by flow or weight
Trim Control
The blended output is continuously
analysed and adjusted by viscosity

17. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
RATIO CONTROL
The blend controller produces a „set-point‟
for each stream based on the component
ratio set in the recipe by the operator
The „set-point‟ for each stream is compared
to the signal from the flow meter (volume or
mass)
The control loop is closed by a control valve
(or a speed controlled pump) to ensure that
the set-point is maintained irrespective of
changes in overall blend rate
The accuracy of the final blend is a direct
function of the selection and accuracy of the
flow meters used

18. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
RATIO CONTROL
 Typically Used In Mechanical Blenders
 Slow To React – Poor Control
 Recipe Flaws
 Poor Accuracy
 Affected By Feedstock
 No Compensation Ability
 Static Mixer
 Pressure Drop

19. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
RATIO CONTROL WITH VISCOSITY CONTROL
Static Mixer V T
 Static Mixer – “Folds” Rather Than “Forces”
 Viscometer In Line – Not Stable Environment
 Not At Reference Temperature
 Temperature Correction Set For One Oil
 Maximum Pressure Drop
 Limited Turn Down
 Limits Feed Stock

20. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL
The blend controller produces a „set-point‟
initially produces a „set-point‟
for each stream based on the component ratio set
in the recipe by the operator
ratio set in the recipe by the operator
The „set-point‟ for each stream is compared to
the signal from the viscometers (volume or
to the signal from the flow meterand flow meters
and is
mass) immediately adjusted and compensating
The control loop is closed by a control valve to
ensure that controlled viscosity is maintained
(or a speed the correctpump) to ensure that
irrespective is maintained irrespective rate
the set-pointof changes in overall blend of
The accuracy of the finalrate is tightly
changes in overall blend blend
The accuracy of the final blend is ameters and is
controlled by the viscometers, flow direct
constantly the selection the accuracy
function of monitored by and controller. of the
 Themeters used
flow controller ensures that end product is on
spec at all times

21. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL
 Used In Latest Technology Blenders
 Fast To React – Excellent Control
 Compensates For Recipe Flaws
 Extremely High Accuracy
 Compensates For Feedstock Changes
 Whole Blend “On Spec”
 Jet Mixing (No Pressure Drop)

22. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL
 Operator Friendly „Windows Style‟ Prompts
 Reliable
 Multi-level Security
 Remote Start/Stop
 Recipe Management
 Expandable
 SCADA Option

23. MEASUREMENT SYSTEMS
HOW DOES A BLENDER WORK?
ADVANCED CLOSED LOOP CONTROL
 Standard Blender Software
 Full DCS Integration
 Provides Reporting
 Batch
 Volume
 Viscosity
 Density
 Sulphur

24. MEASUREMENT SYSTEMS
HOW WILL IT WORK FOR YOU ?
ADVANCED CLOSED LOOP CONTROL
 Blending Costs Reduced by $12 per Tonne
 Viscosity Corrected to Reference Temperature
 Blender Can Bulk Load Products
 Accurate Volume Corrections to Reference Temperature
 MARPOL / ISO 8217 Compliance
 Sulphur Content of Blend Calculated
 Recipe Management with Manual Overide
 Configurable Alarms
 3 Security Levels
 Fully Flexible System

25. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
BUNKER BLENDER – SOUTH AMERICA
•Flow
•400 – 3000 M³/Hr
•Target Recipe
•375cSt
•During Commissioning
• Ratio
– 50%
– 26%
– 24%
• HFO - 10480cSt
• HGO - 208cSt
• MDO -12.5cSt

26. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
BUNKER BLENDER – SOUTH AMERICA
•Initial Run
• Ratio 20% REDUCTION IN MDO
– 55.0% - 23.5% - 21.5%
– MDO Reduction of 3.5%
•Final Product
• Ratio
– 57.1%
– 23.6%
– 19.3%
•Reduction In MDO
• 24% - 19.3%
– 4.7%

27. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
•Self Contained Trailer Mounted Blender
•Middle East
•200 M³/Hr
•Pre-Programmed &
Configurable Blends

28. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
• Barge Mounted Blender
• North America
• 500 M³/Hr
• Pre-Programmed &
Configurable Blends

29. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
• 2 – Jetty Mounted
Blenders
• South America
• 2500 Bbl/Hour
• Viscosity Trim

30. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
• Barge Mounted Blender
• Europe
• 1200 M³/Hr
• Pre-Programmed &
Configurable Blends

31. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
• Quay Mounted Blender
• Namibia
• 30 M³/Hr
• With Viscosity Trim &
Sampling Capabilities

32. MEASUREMENT SYSTEMS
RECENT SUCCESS STORIES
•PDVSA 2 Marine Bunker Blenders
•PetroBras 5 Marine Bunker Blender
•BP Marine 1 Marine Bunker Blender
•UNOCAL 1 Marine Bunker Blender
•Coastal Oil 1 Portable Bunker Blender
•Texaco Panama 1 Marine Bunker Blender
•Harbour Fuel Marine 1 Marine Bunker Blender
•Patssa Panama 4 Marine Bunker Blenders
•Bunkers Gibraltar 1 Barge Bunker Blender
•Mueretta 1 Barge Bunker Blender
•Fujairah Marine 1 Bunker Blender
•Hangana SeaFoods 1 Bunker Blender

33. MEASUREMENT SYSTEMS
QUESTIONS ?
THANK YOU