TRANSPORTATION STORAGE MARKETING OF

PETROLEUM
Petroleum sector is categorized into two categories namely upstream
and downstream. Upstream activities involves exploration and
production activities, while downstream includes importation, storage,
transformation, export, inland transportation of crude oil and refined
petroleum products, wholesale and retail distribution of petroleum
products including liquefied petroleum gas. In the context of The
Energy and Water Utilities Regulatory Authority Act, Cap 414 the
petroleum downstream is referred to as the regulated petroleum subsector.

Tanzania consumes about 1.54 million cubic meters per annum of

petroleum products wholly imported from Mediterranean, Arabian Gulf
and sometimes from Durban, South Africa. Effective from January
2000, petroleum downstream sub-sector was liberalized enabling Oil
marketing companies to individually procure and trade petroleum
products in accordance to their market requirements and setting pump
prices based on the prevailing market forces.

A. Types by transport function

In general, pipelines can be classified in three categories depending on
purpose:
Gathering pipelines: Group of smaller interconnected pipelines
forming complex networks with the purpose of bringing crude oil
or natural gas from several nearby wells to a treatment plant or
processing facility. In this group, pipelines are usually short- a
couple of hundred meters- and with small diameters. Also sub-sea
pipelines for collecting product from deep water production
platforms are considered gathering systems.
Transportation pipelines: Mainly long pipes with large
diameters, moving products (oil, gas, refined products) between
cities, countries and even continents. These transportation
networks include several compressor stations in gas lines or pump
stations for crude and multi-products pipelines.
Distribution pipelines: Composed of several interconnected
pipelines with small diameters, used to take the products to the
final consumer. Feeder lines to distribute gas to homes and
businesses downstream. Pipelines at terminals for distributing
products to tanks and storage facilities are included in this group.
B. Construction
When a pipeline is built, the construction project not only covers the
civil work to lay the pipeline and build the pump/compressor stations, it
also has to cover all the work related to the installation of the field
devices that will support remote operation. The pipeline is routed along
2

what is known as a "right of way". Pipelines are generally developed

and built using the following stages:

Open season to determine market interest: Potential customers are

given the chance to sign up for part of the new pipeline's capacity
rights. This stage lasts up to two months. If interest in the pipeline is
limited, the project does not move forward.[33]

Route (right of way) selection

Pipeline design: The pipeline project may take a number of forms,

including the
construction of a new pipeline, conversion of existing
pipeline from one fuel type to
another, or improvements to facilities
on a current pipeline route. The design process
may take up to six
months.

Obtaining approval: Once the design is finalized and the first

pipeline customers have
purchased their share of capacity, the
project must be approved by the relevant
regulatory agencies. The
process can last up to 18 months, particularly for pipelines that span
multiple states.

Surveying the route

Clearing the route

Trenching - Main Route and Crossings (roads, rail, other pipes,

etc.)

Installing the pipe

Installing valves, intersections, etc.

Covering the pipe and trench

Testing: Once construction is completed, the new pipeline is

subjected to tests to ensure
its structural integrity. These may
include hydrostatic testing and line packing.
C. Components
3

Pipeline networks are composed of several pieces of equipment that

operate together to move products from location to location. The main
elements of a pipeline system are:
i.

Initial injection station: known also as supply or inlet station, is

the beginning of the system, where the product is injected into the
line. Storage facilities, pumps or compressors are usually located
at these locations.
ii. Compressor/pump stations: Pumps for liquid pipelines
and Compressors for gas pipelines are located along the line to
move the product through the pipeline. The location of these
stations is defined by the topography of the terrain, the type of
product being transported, or operational conditions of the
network.
iii. Partial delivery station: Known also as intermediate stations,
these facilities allow the pipeline operator to deliver part of the
product being transported.
iv. Block valve station: These are the first line of protection for
pipelines. With these valves
the operator can isolate any segment
of the line for maintenance work or isolate a rupture
or leak. Block
valve stations are usually located every 20 to 30 miles (48 km),
depending on the type of pipeline.
v.
Regulator station: This is a special type of valve station, where
the operator can release
some of the pressure from the line.
Regulators are usually located at the downhill side of a peak.
vi. Final delivery station: Known also as outlet stations or terminals,
this is where the
product will be distributed to the consumer. It
could be a tank terminal for liquid
pipelines or a connection to a
distribution network for gas pipelines.

D. Leak detection systems

Since oil and gas pipelines are an important asset of the economic
development of almost any country, it has been required either by
government regulations or internal policies to ensure the safety of the
assets, and the population and environment where these pipelines run.
Pipeline companies face government regulation, environmental
constraints and social situations. Government regulations may define
minimum staff to run the operation, operator training requirements;
pipeline facilities, technology and applications required to ensure
operational safety.
Social factors also affect the operation of pipelines.
In third world countries, product theft is a problem for pipeline
companies. It is common to find unauthorized extractions in the middle
of the pipeline. In this case, the detection levels should be under two
percent of maximum flow, with a high expectation for location
accuracy.
E. Maintenance
Maintenance of pipelines includes checking Cathodic protection levels
for the proper range, surveillance for construction, erosion, or leaks by
foot, land vehicle, boat, or air, and running cleaning pigs, when there is
anything carried in the pipeline that is corrosive.

Accidents
5

June 16, 1976 - A gasoline pipeline was ruptured by a road construction

crew in Los Angeles, California. Gasoline sprayed across the area, and
soon ignited, killing 9, and injuring at least 14 others. Confusion over
the depth of the pipeline in the construction area seemed to be a factor
in the accident.
1982 - One of the largest non-nuclear explosions in history occurred
along the Trans-Siberian Pipeline in the former Soviet Union. It has
been alleged that the explosion was the result of CIA sabotage of the
Trans-Siberian Pipeline.
June 4, 1989 - sparks from two passing trains detonated gas leaking
from an LPG pipeline near Ufa, Russia. Up to 645 people were reported
killed.
October 17, 1998 - 1998 Jesse pipeline explosion at Jesse in the Niger
Delta in Nigeria, a petroleum pipeline exploded killing about 1,200
villagers, some of whom were scavenging gasoline- the worst of several
similar incidents in this country.
June 10, 1999 - a pipeline rupture in a Bellingham, Washington park led
to the release of 277,200 gallons of gasoline. The gasoline was ignited,
causing an explosion that killed two children and one adult.
Misoperation of the pipeline and a previously damaged section of the
pipe that was not detected before were identified as causing the failure.
August 19, 2000 - natural gas pipeline rupture and fire near Carlsbad,
New Mexico; this explosion and fire killed 12 members of an extended
family. The cause was due to severe internal corrosion of the pipeline.
July 30, 2004 - a major natural gas pipeline exploded
in Ghislenghien, Belgium near Ath (thirty kilometers southwest
6

of Brussels), killing at least 24 people and leaving 132 wounded, some

critically.
May 12, 2006 - an oil pipeline ruptured outside Lagos, Nigeria. Up to
200 people may have been killed. See Nigeria oil blast.
November 1, 2007 - a propane pipeline exploded near Carmichael,
Mississippi, about 30 miles (48 km) south of Meridian, Mississippi.
Two people were killed instantly and an additional four were injured.
Several homes were destroyed and sixty families were displaced. The
pipeline is owned by Enterprise Products Partners LP, and runs
from Mont Belvieu, Texas, to Apex, North Carolina. Inability to find
flaws in pre-1971 ERW seam welded pipe flaws was a contributing
factor to the accident.
September 9, 2010 - a 30 inch diameter high pressure natural gas
pipeline owned by Pacific Gas & Electric exploded in flames in the
Crestmoor residential neighborhood 2 mi (3.2 km) west of San
Francisco International Airport, killing 8, injuring 58, and destroying 38
homes. Poor quality control of the pipe used & of the construction were
cited as factors in the accident.

As targets

Pipelines can be the target of vandalism, sabotage, or even terrorist

attacks. In war, pipelines are often the target of military attacks, as
destruction of pipelines can seriously disrupt enemy logistics.

MARKETING
Like other sectors of the oil and gas business, the marketing and
distribution of petroleum products takes place on a vast, global scale.
Every day, hundreds of millions of companies and individuals buy
these products at wholesale or directly from retail outlets that number
in the hundreds of thousands worldwide. If we include indirect users of
petroleum products, the number of consumers runs into the billions.

Handling and Storage of Petroleum

The purpose of this Part is to set forth regulations for the handling and
storage of petroleum in order to protect the public health, welfare, soil,
water and air.

Color coding of fill ports - API

The colors to be used are:
(i)

High gasoline

Red

(ii)

Middle gasoline

Blue

(iii) Lower gasoline

White

(iv) High unleaded gasoline

Red w/white cross

(v)

Middle unleaded gasoline Blue w/white cross

(vi) Lower unleaded gasoline

White w/black cross

(vii) Vapor recovery

Orange

(viii) Diesel

Yellow

(ix) #1 fuel oil

Purple w/yellow bar

(x)

Green

#2 fuel oil

(xi) Kerosene

Brown

Gravity / Density Conversions

A specific gravity scale developed by the American Petroleum Institute
(API) for measuring the relative density of various petroleum liquids,
expressed in degrees. API gravity is gradated in degrees on
a hydrometer instrument and was designed so that most values would
fall between 10 and 70 API gravity. The arbitrary formula used to
obtain this effect is:
API gravity = (141.5/SG at 60F) - 131.5,
SG is the specific gravity of the fluid.

API
Specific
gravity gravity

Density
Pounds/gal

API
Specific
gravity gravity

grams/cc
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

1.074
1.065
1.057
1.050
1.042
1.034
1.027
1.019
1.012
1.005
0.998
0.991
0.984
0.977
0.970
0.964
0.957
0.951
0.944
0.938
0.932
0.926
0.920
0.914
0.908
0.902
0.896
0.891
0.885

Density
Pounds/gal.

grams/cc
8.963
8.888
8.821
8.763
8.696
8.629
8.571
8.504
8.446
8.387
8.329
8.270
8.212
8.153
8.095
8.045
7.987
7.936
7.878
7.828
7.778
7.728
7.678
7.628
7.578
7.528
7.477
7.436
7.386

31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
10

0.869
0.863
0.858
0.853
0.848
0.843
0.838
0.833
0.828
0.823
0.818
0.814
0.809
0.804
0.800
0.795
0.791
0.786
0.782
0.778
0.774
0.769
0.765
0.761
0.757
0.753
0.749
0.745
0.741

7.252
7.202
7.160
7.119
7.077
7.035
6.993
6.952
6.910
6.868
6.827
6.793
6.751
6.710
6.676
6.635
6.601
6.559
6.526
6.493
6.459
6.418
6.384
6.351
6.317
6.284
6.251
6.217
6.184

29
30

0.880
0.874

7.344
7.294

60
61

11

0.737
0.733

6.151
6.117