Fuel Oil Storage Issues

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Fuel Oil Storage Issues
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On the Agenda

• Recap of Sweden's fuel oil consumption and
  understanding of the country's huge excess
  storage capacity now used for independent
  storage.
• The role of Scandinavia as a transit point for
  fuel oil.
• Difficulties involved with fuel oil storage.

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Sweden?
Swedish tennis player Björn Borg kissing the
Wimbledon trophy 1980 after having won the
tournament five years in a row.
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Sweden?
Swedish actress Ingrid Bergman (and Humphrey
Bogart).
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Sweden?
Swedish film maker Ingemar Bergman in his prime.
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Sweden?
Olof Palme, Swedish Prime Minister 1969-76 and
1982-86.
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Europe
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Scandinavia
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Scandinavia
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Fuel Oil Consumption in Sweden 1970 - 2006
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Why This Decrease?

• One nuclear power plant 1970.
• Seven nuclear power plants 1980.
• Thirteen nuclear power plants 1990.

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Fuel Oil Consumption in Denmark 1979 - 2003
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Why This Decrease?

• Aggressive program of reforms after the first oil
  embargo to reduce the country's oil dependency.
• Development of combined heat and power (CHP)
  plants running on coal.
• Massive investments in renewable energy
  (especially in wind power).

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Estimated Russian Exports 2007
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Estimated Destinations for Russian Fuel Oil
Exports 2007
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Estimated Russian Crude Oil Export 2006-2012
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Russian Exports are Likely to Increase
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Why Not?

• Why not buy more from Russia and reduce the
  dependency upon the Middle East?
• Why not use Scandinavia as a hub for storage and
  distribution?

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Independent Fuel Oil Storage in Scandinavia

• Total Capacity 24 million barrels
• Primarily in Sweden and Denmark
• Building or breaking bulk
• Blending operations
• Contango storage

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Total Storage Capacity Nordic
Storage
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Total Throughput Nordic
Storage
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Rock Caverns
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Fixed Waterbed
Nordic Storage Cavern C11 and C12 in Norrköping,
Sweden. The waterbed is always kept at a constant
level. This is the most common type of cavern.
Primarily used for storage of gasoil, diesel and
fuel oil.
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Fixed Waterbed
Nordic Storage Cavern C11 and C12 in Norrköping,
Sweden
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Flexible Waterbed
Nordic Storage Cavern C104 in Oskarshamn, Sweden.
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Flexible Waterbed
When oil (red colour) is pumped into the cavern,
water (blue colour) is pumped out of the
cavern. This type of cavern is primarily used for
storage of gasoline and naphta. On the top of the
cavern there is a water lock preventing fumes
from leaving the cavern.
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Difficulties Involved with Fuel Oil Storage

• Heating systems
• Insulation
• Draining of tanks
• Emptying of tanks/caverns

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Difficulties Involved with Fuel Oil Storage

• Measurement of caverns
• Cleaning of tanks

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• Thank You!
• Ulf Vleeshouwers
• Phone [phone]
• E-mail ulf_at_nordicstorage.se