Bunkering in the 21 st Century G.R.Bowler,Inc. Marine Controls 2261 Lake Rd. Ontario,NY USA

Benefits of 1% Measurement Improvement Bunker represents 50-70% of total ship operating expense Example: Large container ship-7,750 TEU –Last summer $500/tn = $30M –Now $335/tn = $13.4M –Next summer ???? What does a 1% measurement improvement mean to you? –Last summer $300K potential savings –Today $134k potential savings –Reduced billing discrepancies The technology is here today that can benefit suppliers, barge operators and shipping companies

AgendaAgenda Bunker Sources of Error Custody Transfer Challenges Micro Motion Coriolis Technology at Work Questions

Bunker Sources of Error Bunker Tank 1 cm tape error = 0.25% error for a 4m level Potential savings on 9000 tonne stem $7,500

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

Tank A Tank B DDDD Sources of Error - Density & Stratification Tank Stratification Errors of 0.25% to 1.5% possible

Bunker Sources of Error – Entrained Gas Consider a Bunker with 5% entrained gas: A volume measurement will give a batch error of +5% Effect on mass measurement is negligible Drive Gain can be used to indicate presence of EG 5% error = $151K potential loss

Bunker Sources of Error – Volume to Mass Conversion Manual Conversion formula: Actual volume > net volume > weight(vac) > weight(air) =(?)% calc error Volume-based Measurement Automated BDN Direct Mass Measurement

AgendaAgenda Bunker Sources of Error Custody Transfer Challenges Micro Motion Coriolis Technology at Work Questions

Custody Transfer Processes Custody transfer is simply an agreement between two Parties: Buyer and Seller However, the Bunkering process is not so simple

Everyday Custody Transfer Examples Well Head Truck/Ship Loading Pipelines Truck Dispensing Retail Dispensing

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

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

AgendaAgenda Bunker Sources of Error Custody Transfer Challenges are not New to Emerson Coriolis Technology at Work Questions

Micro Motion Coriolis Technology at Work Three phase test program in execution: –Phase 1: Load refinery via Micro Motion meter in both ideal and non-ideal conditions –Phase 2: Dispense bunker fuel into a vessel via the Micro Motion meter in both ideal and non-ideal conditions –Phase 3: Use a vessel installed meter to measure incoming fuel for both ideal and non ideal conditions.

Micro Motion Coriolis Technology at Work Micro Motion Coriolis test program is complete and successful Final data being prepared for discussion

Micro Motion Coriolis Technology at Work Micro Motion ELITE High Capacity Coriolis Meters Size :Flow Range Size :Flow Range HC2 : 750 Tn HC3 : 1275 Tn HC4 : 2100 Tn Size :Flow Range Size :Flow Range HC2 : 750 Tn HC3 : 1275 Tn HC4 : 2100 Tn

Micro Motion Coriolis Technology at Work Sufficient data to MID certify: –Barge loading –Barge dispensing –Ship receiving Testing supports a 0.5% bunker delivery accuracy Savings potential expected to be significant