Terminal Customer Drives Efficiencies by Consolidating Degassing Vendors
The customer operates five petroleum terminals in Southern California. Subject to South Coast Air Quality Management District rule 1149 degassing requirements, the customer was procuring degassing services independently for each of their terminals. Because their degassing contractor could only process vapors at lower flow levels, they had to slow down their petroleum load pumps, thus incurring off-loading demurrage from their shipper. They initiated consolidated contract covering all terminals incorporating strict contractor response times, dedicated control equipment, mandated vapor flow rates and favorable economics.
GEM proposed dedicating a high capacity 20MM Btu/hour vapor combustor with guaranteed response times for service requests. The dedicated unit would reduce mobilization time and expense while its high capacity would enable the customer to speed their petroleum load rate. To meet their financial expectations, GEM also offered favorable flat rate pricing based on tank size, allowing the customer the ability to project degassing costs rather than being subject to traditional time and materials pricing.
The customer saved in excess of $200,000 per year with favorable flat rate pricing. Additionally, GEM’s high capacity vapor combustor eliminated product loading demurrage (which can run up to $100,000 per day) by allowing them to double their product load rate from 3,000 barrels per hour (bbl/hr) to 6,000 bbl/hr. As an added bonus, the customer was able to use more energy-efficient higher capacity petroleum pumps providing them an electricity cost savings of close to $1MM annually.
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