Jet Fuel and NGL Logistics Overhaul: Boosting Capacity and Reliability in Seasonal Pipelines
Client Context
- A Mid-Continent midstream operation faced several challenges related to pipeline shipments of Jet fuel and JP8 (now JAA) to a key terminal facility.
Key Challenges
- The existing setup relied on complex routing and frequent seasonal reversals in a key pipeline, leading to:
- Capacity constraints on a major pipeline during winter months due to flow reversals.
- Limited butane delivery flexibility.
- Inconsistent supply reliability for inbound butane and outbound Jet and JAA products at the terminal.
- Longer response times due to inefficient routing and dependency on reverse flows.
- These issues posed risks to operational efficiency, customer service, and increased butane costs.
Approach & Key Success Factors
- Northern Terminal Modifications: Enabled Jet/JAA receipts from an additional pipeline source, increasing supply flexibility.
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- Interconnecting Pipeline Upgrade: Allowed Jet/JAA product to flow directly from the Northern to the Southern Terminal, eliminating seasonal reversals.
- New tariff structures to support the revised flow paths.
- Enhanced Scheduling:
- Jet/JAA flows directly from the refinery during warmer months.
- In colder months, product flows from the refinery through the Northern Terminal and interconnection to the Southern Terminal.
- Visual Command Center to plan and highlight issues in a much more proactive way
- Implemented critical KPI’s and a user designed process scorecard
The team mapped the complete value stream / brainstormed solutions with multiple stakeholders and implemented several operational improvements.
Results
Improved Supplier reliability and response times
15%
Increased Winter Capacity
10%
Throughput of butane deliveries
20%
Reduced scheduling errors
$2M
Increased Annual Operating Income