In the heart of Nairobi, amidst the hustle and bustle, a driver found himself facing an unexpected dilemma. It was a hot afternoon, and the fuel gauge signalled that a stop for a refill was imminent.
Remembering a piece of advice from a fellow driver, he decided to wait until evening, anticipating cooler temperatures that could potentially enhance his car's performance and fuel efficiency.
Did you know that behind this seemingly routine decision lay a web of intricate scientific principles governing the gain and loss of petroleum products during their journey from source to destination?
Product loss, a common phenomenon in the petroleum industry, occurs at various stages of handling such as storage, transportation, and loading into pipelines or trucks. Within the petroleum sector, two types of losses exist—actual and apparent.
Actual product loss involves spillages, leakages, theft, and operational losses. On the other hand, apparent loss occurs without a physical escape of the product from the delivery chain.
Factors like equipment inaccuracies, density measurement errors and temperature variations during transportation contribute to apparent losses.
For instance, when petroleum products move from the Port (low altitude) to say, Nairobi (high altitude) and again to Kisumu (low altitude), evaporation is bound to occur due to the temperature variations leading to apparent losses in the delivery chain.
Additionally, the effect of temperature fluctuation on a static petroleum product in a storage tank results in variations its volume over a period of time. This is dependent on the time the tank will be operated which can result in an apparent loss or gain due to temperature variations.
Further, apparent loss can also be caused by interface sloping (when two different products mix) and the effect of interface sloping is such that the cumulative volume of the two products contracts due to differences in molecular sizes. Other losses which are very rare occur during the maintenance of the pipeline.
Despite advancements in technology and industry practices to minimize losses, the inherent nature of petroleum products results in unavoidable loss during transportation and handling. Governments worldwide set allowable loss margins for pipeline companies, reflecting global best practices.
In Kenya, the Ministry of Energy & Petroleum and the Energy and Petroleum Regulatory Authority have established a minimum allowable product loss and gain margin of 0.25 per cent. In 2023, KPC reported an average product loss of 0.06 per cent, surpassing both internal and EPRA thresholds, showcasing efficiency.
To this end, the Government is aiming for a target of 0.1 per cent which is applicable in Europe and other countries where fuel is transported through a pipeline.
At KPC, we have been actively working on improving the pipeline systems and infrastructure to minimise product losses and our efforts can be reflected in the continuous security enhancement measures along the pipeline network. This includes the recent rollout of a Leak Detection System.
We have also commissioned Bottom-Loading Facilities in our Nakuru, Eldoret and Kisumu depots. The BLF at the Nairobi Terminal is scheduled for completion in the next 10 months. Bottom loading of products to road tankers is not only environmentally friendly, but also critical in minimising losses.
Beyond the phenomena that explain the natural losses and gains of petroleum products, the integrity of storage and transportation infrastructure is as important as the product itself and deserves attention.
KPC is enhancing this through investing in a robust infrastructure and adhering to best practices which ensure a more efficient and sustainable supply chain for our petroleum products.
In conclusion, navigating the complexities of petroleum product transportation requires a deep understanding of the dynamic causes behind product losses and gains.
KPC's commitment to efficiency, sustainability, and innovation positions it as a leader in the industry, continually striving to minimise losses and optimise the supply chain thus, ultimately ensuring a smoother ride for drivers like Wanyama.
Kenya Pipeline Company managing director