Geography of Tanker Chartering Flashcards
Define tanker ports
Tanker ports are defined as maritime facilities on the banks of major rivers; islands; or natural bays, where seagoing craft load or unload cargo or passengers (this is not always the same as loading and discharge areas)
What are SPMs? Describe how loading takes place there.
- SPMs – single point mooring systems – offshore loading and discharging facilities away from land. Tankers make fast to an SPM, which is a buoy attached to chains to the seabed with a swiveling top, which allows the main buoy to remain stationary despite ocean movements
- The mooring point also rotates. Ships are connected to this via ropes and chains, and the rotation allows the vessel to move around the buoy in response to waves, winds, tides etc.
- Oil comes up via a fixed pipe from the shore to a fixed unit on the seabed called a pipeline end manifold (PLEM), and then via a flexible line up to the buoy, where it is diverted via floating hoses onto the ship
- SPMs can be connected to onshore oilfields, undersea oil production facilities, semi-submersible platforms (which are connected to oilfields), or FPSOs (floating production and storage vessels)
What are PLEMs?
Pipeline end manifold - the point underneath an SPM where the shoreline ends, and oil is diverted up to the buoy
What are process storage tankers and how do they operate?
- These collect oil from small producing oilfields via a wellhead platform and SPM facility, before carrying out some basic processing and storing the resulting oil on board, until a sufficient volume can be accumulated to be transferred to a shuttle tanker
- These shuttle tankers come alongside the mother vessel (the process storage tanker) or makes fast to it in a similar manner to making fast to an SPM
- Operational safety is key as whilst the discharging vessel pumps out, it rises in the water whilst the shuttle tanker deepens. To mitigate this, specialised mooring equipment must be used
Why is understanding the nautical bounderies around SPMs important?
Load and discharge rates can be described in terms of countries
Different countries may only accept vessels flagged in a particular way/other restrictions may apply (such as Jones Act)
Which loading zone is the most significant in the tanker market?
The MEG is the most important loading area in the world by a significant margin in terms of tonne-mile demand
Why are many loading facilities in the MEG located on natural islands or offshore?
The MEG is shallow, with a maximum depth of 70m, necessitating the use of natural islands (e.g., Das Island, UAE; Kharg Island, Iran) and offshore loading facilities (e.g., Juaymah off Ras Tanura; Ras Laffan off Qatar).
What countries are the largest oil producers in the MEG?
The largest producer is Saudi at 11.8bmpd, followed by Iraq at 4.8mbpd and Kuwait at 3mbpd (as of 2020; note Iran has been excluded from this due to sanctions)
What are the major oil-exporting countries via the Black Sea?
Russia, Ukraine, and Georgia.
Through which port does Iraq export oil to Europe?
Ceyhan, Turkey.
Which pipeline connects Middle Eastern oil to the Mediterranean?
The SUMED pipeline, running from Ain Sukhna to Sidi Kerir.
What is the main offshore production region in Northwestern Europe (NWE)? How is it typically transported to shore?
The North Sea, one of the least hospitable production zones outside the Arctic.
It is pumped to shore-based terminals in the UK (e.g., Sullom Voe, Teesport, Hound Point) and Norway (e.g., Sture, Mongstad)
What is the primary hub for oil product distribution in NWE? How are they distributed?
Rotterdam’s Europoort and other ARA (Amsterdam-Rotterdam-Antwerp) players, via pipeline, barge, or tanker to Scandinavia and the Baltic.
How does the Baltic Sea pose challenges for oil transport, and how can it be accessed?
The Baltic has low salinity and freezes in winter, requiring ice-classed vessels and icebreakers. It’s also realtively shallow, meaning tankers are limited to Suezmaxes. It can be reached via the Kiel Canal for barges or via the Skaw/Skagen for tankers. Product are then distributed throughout the Baltic via small ports in Sweden, Finland and Denmark
Why are offshore loading facilities used in WAF?
WAF’s smooth coastline and shallow coastal shelf lacks natural harbors, necessitating the use of offshore loading facilities
What are WAF’s largest producers?
Nigeria, Angola, Congo
What the the main VLCC loading ports in WAF? What are typical destinations for VLCCs and Suezes from the region?
Bonny and Forcados terminals can accommodate VLCCs of up to 320,000 dwt; VLCCs are often fixed from these ports, where two parcels of 1mb can be combined for longer voyages
Common destinations for larger vessels are the FE, with suezes used to serve shorter voyages to Europe or North America
How are ports on the US/Can EC limited? What are the exceptions to this?
While many ports in this region have beam and length restrictions, draught remains the primary limiting factor for most vessels, meaning lightering is common, particularly for refineries in Boston, New York and the Delaware river, which import crude and export products in this manner. The exceptions are Come-By-Chance and Point Tupper in Canada which can accommodate VLCCs
Broadly, what crude does the US import and export?
Crude to the US is predominately supplied via the ME and WAF, typically via VLCCs to reduce tonne-mile cost
The US has started exporting shale, however high production costs make this highly sensitive to crude prices
What are the main USGC VLCC ports?
LOOP is the main VLCC handling port, and the only true deepwater port in the region, however recent dredging and infrastructure improvements mean that Corpus Christi is becoming a VLCC export hub. Most other loading operations happen via lightering
What producers exist in the USGC?
The US and Mexico are the biggest producers in the region; Venezuela used to be prior to sanctions. Colombia, Guyana and Trinidad and Tobago also produce small amounts
Who are the biggest producers in LATAM?
Venezuela has the largest oil reserves in South America but has been subject to sanctions since 2010
Brazil also has large reserves offshore with sophisticated floating production systems
Besides Brazil’s FPSOs, what are the largest export ports in LATAM?
Colombia exports via Covenas, Buenaventura and Cartagena; Ecuador via Esmereldas and La Libertad; and some smaller export ports exist in Peru. Chile receives oil via pipeline from Argentina and Bolivia
Where does Aus and NZ typically source its oil from?
Auz and NZ import predominately from Indonesia, the ME, and WAF. Australia currently also produces small quantities of oil, with large untapped reserves exist off the NW Shelf
Until 2019, OMV exported Maui oil from NZ, however the majority of exports in the region come from SE Asia
