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One of two unused berths may be removed Two of four Valdez berths not in use for loading crude; Berth 1 may be sold; Berth 3 will continue in use for other functions Kristen Nelson Petroleum News
There are four crude oil loading berths at the Valdez Marine Terminal but only two are in use due to reduced throughput in the trans-Alaska oil pipeline and modern ship design which reduces the time a tanker must spend at a berth.
The Trans-Alaska Pipeline System carriers (BP, ConocoPhillips, ExxonMobil, Koch and Unocal) have applied to the Regulatory Commission of Alaska to permanently discontinue use for crude oil loading of the two berths no longer used for that purpose.
The carriers said in a Dec. 12 filing that they are uncertain whether RCA approval is required and that the filing is done “as a precautionary matter.”
There are four berths at the terminal, Berths 1, 3, 4 and 5. While there is space between Berths 1 and 3 for Berth 2, that berth was never built because after the trans-Alaska oil pipeline became operational it was determined that Berth 2 was not needed, the carriers said.
Berth 1 is a floating berth, 390 feet long and 96 feet wide with 13 buoyancy chambers, four 12-inch loading arms and a loading rate capacity of 80,000 barrels per hour. The berth has been used for crude oil transfer and as an off-loading point for diesel fuel consumed at the Valdez Marine Terminal. The berth is capable of being transported to a different location by water.
Berth 3 is a fixed platform berth, 122 feet long and 46 feet wide with four 16-inch loading arms and a loading rate capacity of 100,000 barrels per hour.
Berth 3 has been used for crude oil transfer in the past, but has not been used for diesel fuel off-loading. “Berth 3 will continue to be used and useful as a layover berth where tankers and other vessels can be moored for purposes other than loading crude oil,” the carriers said.
No vapor recovery arms Berths 1 and 3 are no longer needed for crude oil loading.
Throughput on the trans-Alaska oil pipeline peaked at some 2.1 million barrels a day in the late 1980s, but has since declined to about one-third of that rate, some 700,000 bpd by year-end 2007. That decline in production has resulted in a decline in tanker traffic. When oil throughput was at its peak, the four berths at the terminal “were needed to handle a constant stream of tankers. However, today it is not uncommon for several days to elapse between tanker callings,” the carriers told RCA.
The other issue is that while Berths 4 and 5 are equipped with vapor recovery arms to collect vapors released during tanker loading, Berths 1 and 3 do not have vapor recovery arms. Installation of such arms costs approximately $20 million per berth, the carriers said and current federal environmental regulations require vapor recovery equipment for berths loading crude oil.
The Environmental Protection Agency allowed loading of crude oil without vapor recovery at Berths 1 and 3 until 2002. The carriers said EPA recognized that Berths 1 and 3 would not need vapor controls and allowed for that in its regulations.
In addition to reduced throughput in the pipeline, modern segregated ballasting systems on tankers that call at the Valdez Marine Terminal have reduced by approximately half the time a tanker must remain at a berth.
The carriers said that in the past because of deballasting and loading requirements a tanker would remain at berth for some 18 hours, “whereas today modern tankers seldom need to deballast at the berth, and crude oil loading requires an average of approximately nine hours per vessel.”
Berths no longer needed Because of these two changes, Berths 1 and 3 are no longer needed. Berth 1 was last used for crude oil loading in 2001 and Berth 3 in 2002. Berth 1 was last used for diesel fuel transfer in 2002.
The plan for Berth 1 is to sell it for use or for salvage value, “if either of those options is determined to be economical. Until then, Berth 1 can be used for purposes other than loading crude oil.”
The carriers said they plan to continue to use Berth 3 indefinitely for purposes other than loading crude oil. It is frequently used as a layover berth when Hinchinbrook Entrance is closed due to adverse weather in the Gulf of Alaska, for crew member medical evacuations, for vessel repairs or in support of oil spill drills.
Berth 1 has been used “only very infrequently since 2002” for non-crude oil loading purposes.
Unused piping associated with crude oil loading will be removed from Berths 1 and 3, the carriers said, including removing all hydrocarbons from the piping at those berths.
The work is planned for May through September this year.
The carriers requested that RCA determine whether an application for discontinuation of use of Berths 1 and 3 for crude oil loading is required and if so, make a final finding so that necessary work can begin by April 15 and so that Berth 1 can be sold if a buyer can be found.
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