What is Bunkering?

• Bunkering
– Filling ships and barges with fuel used to power ships
• Bunker
– Gets its name from the containers on ships and in ports
that it is stored in
– In the days of steam they were coal bunkers but now
they are bunker-fuel tanks
• Bunker fuel
– Technically any type of fuel oil used aboard ships
 Fuel Bunkering Market
• Bunker Fuel Brokers
– Work as independent agents brokering fuel between two parties
• Shore Supplier (terminal)
– Might sell fuel to the barge company or directly to ship
• Barge/Bunkering Company
– Transfers fuel to the ship owners
– May or may not own oil
• Ship Owners
– Purchases fuel from barge owner or shore supplier
Tank Strapping / Gauging
 Bunker Sources of Error

1 cm tape error = 0.25% error for a 4m level

Potential savings on 9000 tonne stem $7,500

Bunker Tank
 Bunker Sources of Error – Temperature
 Placement of temperature probe is
critical for optimum volume to mass
conversion °C °C

 Is the temperature measurement

representative of total bunker?
 Average calculation vs single point
 Savings can be significant
 2°C error on temp (avg) = 0.1%
error for a 991g/l product at 50°C
 Savings $$$

°C °C °C °C °C
Sources of Error - Density & Stratification
Errors of 0.25% to 1.5% possible
D D D D

Tank
Stratification

Tank A Tank B
 Consider a Bunker with 5% Entrained
Air
Volume for Uncertainty
A volume measurement
Mass for Mass
A direct mass measurement
will give a + 5% error
will give a negligible error

– $654/MTn x 3000tns = $1.96M/Bunker

• (A 1% volume error due to air = ~$20,000)
– Drive Gain can be used to indicate presence of entrained gas
 Bunker Sources of Error –
Volume to Mass Conversion
Conversion formula:
Actual volume > net volume > weight(vac) > weight(air) =(?)% calc error
Volume-based Measurement Direct Mass Measurement

Manual Automated
 Custody Transfer Processes
• Custody transfer is simply an agreement between two Parties:
Buyer and Seller

However, the Bunkering process is not so simple

 Bunker Fuel Custody Transfer
Bunkering custody transfer needs are the same as other industries
• Make sure “I’m getting what I’m • Repeatable, accurate measurement –
paying for” globally accepted
• Eliminate idle/downtime due to • Reasonable capital costs to support
refueling operation
operations
• Reduce the number of billing
discrepancies and arbitration claims • Lifecycle cost considered for
operational efficiency

Fuel Barge Operating Vessel

Storage
Terminal
 Bunker Fuel Custody Transfer Challenges
• During Validation • Actual Operational Challenges
– Volume to mass conversions – Inherent differences between tank
– Temperature compensations measurements
– Stacked uncertainties of reference – Entrained gas (Air bubbles)
system – Product holdup in barge pipelines
– Product quality concerns – Placement of meter for buyer’s confidence
– Potential for backflow through meter

Fuel Barge Operating Vessel

Storage
Terminal
 Fuel Bunkering Custody Transfer

Refinery

Pump Storage
Station
Main Line

Container Vessel Barge

Fuel Bunkering Custody Transfer
Below the Deck of
Vessel

Barge

Hose
Fuel Tank To Engines

On Barge Deck
Shipping
Vessel