Engen in world-leading retail fuel loss prevention programme

Wednesday, 24 June 2009

Engen, the 80% PETRONAS-owned South African downstream market leader, continues to register major successes in combating fuel loss at retail service stations, as part of its five-year Spill Intervention Programme (SIP).

At a cost of R347 million, the company's far-reaching SIP programme puts it among the world's most environmentally-aware oil companies, says Engen's Retail Engineering Construction Manager Pat McKune.

Says McKune: "SIP consists of multiple projects, all aimed at mitigating the risk of fuel entering the ground or water resources around Engen's retail site network, which comprises 1 200 sites and 6 500 underground storage tanks."

Engen's sites are also of varying ages and have been built to different fuel installation standards, he adds. This is largely due to Engen having merged with various other networks over the years.

Notwithstanding these complexities, the company voluntarily undertook a detailed study in 2005 to assess the risk of fuel leakage or spillage at each service station. At the same time it re-assessed its fuel installation engineering standards, focusing on:

• Developing a Risk Assessment Profiling (RAP) tool on which to base priority mitigating actions to get sites up to the new Engen standard by 2012,
• Ensuring installations are fit for 'new fuels',
• Determining other ways needed to stop fuel entering the environment, and
• Setting new installation and loss intervention standards.

The results of these undertakings are as follows:

Risk Assessment

McKune says rather than run a simple age-based tank replacement programme, Engen developed and has been using a sophisticated risk profiling (RAP) tool for two years. "We believe it leads the oil industry in South Africa, and possibly the world."

With the specialist support of the Oil Industry Corrosion Control Group (OICCG), under Steve Holt, Engen has RAP-profiled its entire network, assigning site risk levels according to various factors including asset integrity (corrosion risk, stray currents, age of installation, leak history, site volume throughput and ground water vulnerability). From this data a prioritised site list is being produced, with a Priority Index, Failure Prediction Index and Ground Water Vulnerability Rating. The latter rating is based on data from GEOSS, on the Republic's protected environments and sensitive water resources.

GEOSS (Geohydrological and Spatial Solutions International (Pty) Ltd) specialises in geohydrological and spatial technologies, particularly geographic information systems (GIS) and remote sensing (RS). The company aims to be the preferred partner in the application of spatial technologies for the improved utilisation, protection and management of groundwater resources and the natural environment.

Risk Assessment Profiling is being improved with the integration of more site information, leak histories and asset databases, facilitating robust solutions for mitigation.

New installations

All new and rebuilt sites, as well as those undergoing major upgrades have the following elements built into their build specifications:

• Steel composite tanks
• Double-walled fuel piping
• Automatic tank gauging (ATG) with pressurised line leak and tank leak detection
• Real-time statistical inventory reconciliation and remote alarm systems – with response time improvements being evaluated
• Concrete to forecourts and concrete filler slabs to contain and manage fuel delivery spills
• Filler and forecourt drainage / containment system.
• Drainage leads to six-cubic metre oil interceptors (equal to the compartment size of a bulk fuel truck)
• Tank access, filler and pump island secondary containment
• Oil interceptor connection to storm water/foul sewers
• Dealer contract with Engen-approved waste management company
• Vapour recovery Stage 1b standard addition
• 'Reedbed' water and sewage treatment is being piloted

Existing site interventions

Engen is rolling out its PILP (Product Inventory Loss Policy) on 815 sites until 2012. Work comprises some of the above interventions, namely Automatic Tank Gauging, concrete to forecourts and filler areas, forecourt and filler area drainage, oil interceptors with storm water connections, filler area secondary containment and dealer contracts with approved waste management companies.

Where systems are replaced or upgraded, new-site specifications will apply.

Dealer Training

Engen's HSEQ manual and dealer training also covers fuel loss management. An insurance penalty system leaves dealers liable for undetected fuel losses. Regular HSE guideline communications and monthly bulletins go out to dealers to maintain a heightened awareness and vigilance.

Finger on the pulse

McKune concludes that, with measures like the permanent remote electronic monitoring of sites, Engen always has a finger on the pulse to protect the environment, the community, as well as Engen and its shareholders.

"We have aligned ourselves voluntarily with world fuel installation standards and leak management processes, allowing us to prevent leaks and spills to world standards, and to take the best possible mitigating action during emergencies."

Engen retail fuel loss prevention programme in group HSE awards

Engen is so confident of running one of the world's most sophisticated retail leak and spill prevention programmes that it has entered SIP into the PETRONAS's annual HSEQ awards.

PETRONAS aggressively promotes world-class health, safety, environment and quality (HSEQ) standards across the group, comprising 120 companies. The hotly contested awards will take culminate in a ceremony later this year.

Only two other HSE initiatives will represent Engen at the awards – the environmental monitoring activities of its Durban refinery and its chemical reactivity database.

"All three are outstanding examples of HSEQ excellence," says Dr Bea Ponnudurai, Engen GM for HSEQ. Dr Ponnudurai, formerly PETRONAS's Group GM (HSE), has been seconded to Engen to introduce group HSEQ best practise principles into the SA company's operations and those of its African affiliates.