Tank storage: security, resilience, and the energy transition

Peter Davidson, CEO of the Tank Storage Association (TSA), returns to the Hydrocarbon Engineering Podcast to discuss the changing role of tank storage in a rapidly evolving energy landscape.

He explores the impact of geopolitical uncertainty, security of supply, the energy transition, process safety, and workforce wellbeing, as well as what lies ahead for the sector.

This episode of the Hydrocarbon Engineering Podcast is sponsored by Sherwin-Williams Protective & Marine.

 

Sherwin-Williams Protective & Marine delivers world-class industry subject matter expertise, unparalleled technical and specification service, and unmatched regional commercial team support to customers around the globe, including in the energy market. The company’s broad portfolio of high-performance coatings and systems – including protective liquid and powder coatings, as well as fire protection coatings – excel at combating corrosion and help customers achieve smarter, time-tested asset protection. For more information, visit protective.sherwin.com.

Creators and Guests

Host

Callum O'Reilly

Callum leads the editorial teams at Hydrocarbon Engineering, commissioning articles and features, and representing the magazine at industry events.

Guest

Peter Davidson

CEO of the Tank Storage Association (TSA).

What is Hydrocarbon Engineering Podcast?

The Hydrocarbon Engineering podcast: a podcast series for professionals in the downstream refining, petrochemical and gas processing industries.

Callum O'Reilly: 00:00

Hello and thanks for joining us on the Hydrocarbon Engineering Podcast. Today I'm welcoming back Peter Davidson, CEO of the Tank Storage Association or TSA to explore some of the latest developments in the tank storage sector. The TSA is a UK based organization whose members are engaged in the storage of bulk liquids and the provision of products and services to the sector. Peter joined us last year to discuss supply security and resilience amongst other topics including the impact of the energy transition on the tank storage sector and we thought it would be a good idea to getting back onto the podcast now to consider how things have changed in the past year given turbulent geopolitical events.

Advert: 00:53

This episode of the Hydrocarbon Engineering Podcast is sponsored by Sherwin Williams Protective and Marine. Sherwin Williams Protective and Marine delivers world class industry subject matter expertise, unparalleled technical and specification service, and unmatched regional commercial team support to customers around the globe, including in the energy market. The company's broad portfolio of high performance coatings and systems, including protected liquid and powder coatings as well as fire protection coatings, excel at combating corrosion and help customers achieve smarter, time tested asset protection. For more information, visit protective.sherwin.com.

Callum O'Reilly: 01:34

Hi, Peter, and welcome back to the podcast. So a lot has changed since we spoke last year, so I wanted to begin by asking how do you see the strategic importance of storage and logistics infrastructure evolving and what does that mean ultimately for the tank storage sector?

Peter Davidson: 01:52

Hi Callum, and thank you again for giving me another opportunity to do a podcast with you, it's always a thrill to work with you on these. You're absolutely right, a huge amount has changed over the past year, I think it's probably been a year since we last spoke on one of these, but if anything recent developments have really reinforced how strategically important storage and logistics infrastructure really is. And I guess at the core of that, the bulk storage and logistics sector performs four critical functions for The UK economy. So firstly it facilitates the supply of essential products that underpin everyday life, And that includes a wide range of substances from transport and heating fuels to chemicals, animal feeds and also foodstuffs. Secondly, it supports The UK industry by ensuring manufacturers and industrial users have reliable access to raw materials and the energy products that they need.

Peter Davidson: 02:52

Thirdly, it enables and strengthens The UK's role as a trading hub by connecting global supply chains with domestic markets here in The UK. And finally, number four, it plays a vital role in safeguarding strategic and emergency stocks, contributing directly to national resilience and security of UK plc. And I think the importance of those four functions has become even more apparent in this increasingly uncertain geopolitical landscape. Now with regard to The UK's energy system in particular, the bulk storage sector provides resilience and supply stability by ensuring reliable access to the energy products that consumers, industry, ports, airports and military assets depend on. And that resilience really is underpinned by a network of import terminals, secondary inland terminals or storage facilities, distribution hubs and pipeline infrastructure.

Peter Davidson: 03:56

And all of those elements collectively enable the efficient movement of products from global and domestic sources, so those products that are imported and also manufactured domestically, to the end users all across The UK. I think what's often overlooked is that bulk storage and distribution infrastructure is not simply about holding products. People think they're just a big tank, they hold substance and that's the end and that's what a terminal does. But it's a little bit more involved in that. In fact the sector provides a huge amount of flexibility with regard to the balance of supply and demand across very complex supply chains.

Peter Davidson: 04:38

And that ensures that energy products can move efficiently when they are needed and in the quantities that are required. And that's both from global and domestic sources to the point of consumption, in other words the end users. And in that respect storage infrastructure acts as a critical enabler of energy security and resilience in The UK, as well as the smooth functioning of the wider economy as a whole. And as we know from recent events, energy security cannot be taken for granted. The ability to import, store, transport and distribute energy products safely and efficiently is absolutely fundamental to national resilience.

Peter Davidson: 05:23

And as we look to the future, that system critical infrastructure that we've spoken about is going to play a central role in supporting the products and supply chains. That are going to be essential to the journey towards carbon neutrality, our net 50 and net zero aims if you like for 2050. And that transition is going to require significant investment. Not only investment, but also expansion and adaption, which in turn depends on the stable and predictable long term policy and regulatory framework. And that's one that recognizes the strategic importance of the sector.

Peter Davidson: 06:06

This will absolutely be essential, especially when looking at multi decade time horizons that we see with Net Zero by 2050.

Callum O'Reilly: 06:16

So Peter the Tank Storage Association will be hosting its annual tank storage conference in September and this is an event that we're really proud to support via our tanks and terminals magazine and no doubt some of the topics that you've just raised then are going to be key topics at your conference. So I was wondering if we could dive into a few of these talking points that are likely to come up during the conference. So perhaps we could begin with the energy transition and how this is shaping the tank storage sector both now and into the future. So how do you see things evolving over the next decade or two? What key steps does the industry need to take to meet net zero targets?

Callum O'Reilly: 06:58

And how important is the role of the tank storage sector in facilitating this?

Peter Davidson: 07:03

Firstly, thanks to Hydrocarbon Engineering for again being a media partner for the conference this year. Your commitment and engagement with the event is always very much appreciated. You ask a very complex question there Callum, so it's probably going to be quite long and complex, but let me just start to unpack it here if I can. Let me start by saying that the TSA conference and exhibition on the September 17 is going to provide an excellent opportunity to explore all of those questions that you raise in greater detail. And in fact this year's conference programme reflects just how important those topics that you raise actually are.

Peter Davidson: 07:43

And on the day we'll be exploring how the energy transition and supply security concerns are shaping the future role of our sector in bulk liquid storage and the role of the sector in supporting energy security and resilience. And is also going to be looking at some of the fundamental issues that underpin everything that we do, and that is safety and leadership. Recognizing that as our sector inevitably evolves, maintaining the highest standards of operational excellence actually remains paramount and our number one priority. And looking ahead, the future energy system is very likely to be a more diverse one, with a much broader mix of fuels, feedstocks, energy carriers, and all of those substances will be moving through our terminals and distribution networks. And in summary, we're going to see demand dispersed among a much wider range of products from traditional fuels, hydrocarbons, to low carbon fuels, and also emerging energy carriers.

Peter Davidson: 08:52

We're also likely to see growing requirements for the storage, handling, distribution of other substances, including things like hydrogen, hydrogen carriers, and of course, dioxide. And I mentioned earlier that ensuring that transition to those new substances takes place in a secure and resilient manner is going to require significant investment in storage and logistics infrastructure, and that investment is needed to support a stable and predictable long term policy and regulatory framework. That's what drives the investment. And the tank storage sector is well positioned to support that evolution, but delivering the infrastructure needed for the energy system of the future is going to require a framework that inspires confidence needed to support investment decisions over many decades. It's confidence in investment that drives that investment in the first place, and what drives confidence is policy certainty.

Peter Davidson: 09:54

It is important to note that the challenge for our sector is not simply one of accommodating new products, though, it's also that of adapting and evolving existing infrastructure, while continuing to provide resilience, flexibility and reliability for products that we rely on today. Those products aren't going to disappear overnight, they are going to be needed for many years to come. And in many cases this adaption process will involve converting or upgrading existing parts of storage infrastructure that we already have. Leveraging the strategic locations, these sites are built strategically for a reason. They are located next to deep water jetties and at the end of pipelines in central locations in The UK.

Peter Davidson: 10:40

So leveraging those strategic locations, the connectivity and expertise that already exist across the sector. And in other instances, entirely new infrastructure is going to be required to support emerging products. Those things that I mentioned earlier, things like carbon dioxide and hydrogen. And those products, technologies and supply chains are absolutely critical to making sure that we can meet the demands of the future. That new infrastructure is actually critical for meeting those demands.

Peter Davidson: 11:13

The challenge is always going to be to deliver that evolution in a way that maintains resilience, flexibility and reliability of the energy system throughout the transition. And that word is key, it's a transition, it isn't something that swaps overnight, it's a transition over many decades.

Callum O'Reilly: 11:31

So Peter I heard the word 'challenge' there on a number of occasions, so I was wondering if we could dive a little bit deeper into that and consider some of the kind of challenges that the industry is going to face as we move to a more diverse mix of traditional and new energy areas. What kind of challenges this will ultimately present for the sector?

Peter Davidson: 11:51

So as I mentioned earlier, for our sector this will mean ensuring that the infrastructure can continue to provide the flexibility, connectivity and resilience needed to support an increasingly diverse range of fuels, feed stops, energy carriers, and that's across many, many complex supply chains. And the tank storage sector does have a strong track record of adapting and changing to market requirements, drawing on decades of operational expertise, technical knowledge and innovation. We've seen that many times in the past where our inventories have changed to meet market demand. So whilst the transition is going to require significant investment and adaption, it also presents significant opportunities. And by leveraging those existing assets which we already have, and of course the expertise and where they are their strategic locations, while developing new capabilities where needed, the sector really is well positioned to play a central role in supporting the energy system of the future.

Callum O'Reilly: 12:53

Another big talking point at the conference this year is likely to be security of supply, especially given geopolitical events like we've already talked about Peter. So can you talk us through the importance of resilient storage and logistics infrastructure both today and in the future?

Peter Davidson: 13:10

Yeah and I think I mentioned this earlier Callum that recent geopolitical developments have served as a very very stark reminder that energy security cannot be taken for granted, and that actually resilient storage and logistics infrastructure is a fundamental component of a secure and well functioning energy system, operating at the intersection of production, trade and consumption of essential products. And looking ahead, the importance of resilience is only likely to increase. And as we see the energy system become more diverse and supply chains become even more complex, storage and logistics infrastructure is going to continue to play a system critical role in connecting sources of supply, and that's whether they're domestic or international, whether they're imports or domestically produced energy carriers. With end users supporting the need for both traditional fuels and low carbon and renewable alternatives. And I think ultimately resilient storage and logistics infrastructure is a strategic asset and it really should be recognised as such.

Callum O'Reilly: 14:21

So safety Peter is another of the big topics that's always front and centre within the sector, and I noticed that one of the conference presentations this year comes from Chris Jenkins of the Environment Agency here in The UK, and it's going to be looking at how prepared we are for high consequence events. So without putting words in Chris's mouth, can you give us your thoughts on developments in process safety and how we manage hazards? So I know Peter that you were at the heart of industry changes following the Buncefield incident, So can you talk us through some

Peter Davidson: 14:54

of these? Of course, and for regular attendees of our conference you will always know that we have very very strong presentations from senior leaders in both human health but also environmental aspects of regulation. And safety has always been, and it continues to be, absolutely fundamental to our sector. We do not have a sector without safe and secure operations. And you're right to highlight the importance of this year's conference session, including that contribution from Chris Jenkins from the EA that you mentioned.

Peter Davidson: 15:30

And he's really going to be looking at the preparedness for those high consequence events, which you mentioned earlier. And that really reflects something that we all recognize that maintaining safe resilient operations is not static. It requires constant vigilance, learning and improvement. I know that Chris is ultimately going to be talking about things like climate change adaption. We've only got to witness the heat waves over this summer to see how the climate is changing, and we need to make sure that we are prepared for those.

Peter Davidson: 16:04

But there are other topics that we're working on as the TSA as well, which are absolutely fundamental in maintaining our safe and secure operations. Just a couple of examples of those is the work that we're leading with the Chemical and Downstream Oil Industries Forum on developing guidance for how operators can go about completing predictive risk assessments, for example. That's something that we haven't had before, but it's absolutely critical to maintaining those safe operations. But also looking at people. We've also been chairing a working group that has developed some workplace health and well-being principles.

Peter Davidson: 16:43

And we're doing a huge amount of work in publicizing those and developing further guidance and information to help businesses turn those principles into reality so that they can help to work more constructively and effectively with their workforce. And I think finally you mentioned the Buncefield explosions last year was the twentieth anniversary of Buncefield, and it's absolutely critically important that we do not forget those lessons that came out of Buncefield, particularly the importance of working collaboratively amongst all stakeholders to try and tackle some of the challenges that we're facing today. So you mentioned some of

Callum O'Reilly: 17:26

the guidance that TSA is part of there Peter, and I also saw that recently you published your annual review of the bulk storage and energy infrastructure sector. So can you outline some of the key findings from this and as you've touched upon already I know a topic that's really close to your heart is the importance of workplace health and well-being, and this is especially important as the sector looks to attract and retain the next generation of workers. You mentioned briefly then the principles of workplace health and well-being leadership guidance, which officially launched recently. Can you tell us a little bit more about that and what impact you hope that it will have on the sector?

Peter Davidson: 18:07

So firstly just mentioning the annual review. We're incredibly proud of the annual review and it really reinforces the themes that we've already touched on throughout this conversation, not just on the health and safety aspects, but also the critical nature of our sector. And I think our sector remains absolutely central to both The UK's energy system and the wider economy. Whether you look at energy products, chemicals, foodstuffs, animal feeds, bulk storage infrastructure, going to continue to underpin the safe and efficient movement of those essential products through complex supply chains. And secondly, it shows that the sector continues to operate safely, reliably and efficiently, which is fundamental given its role to supporting those essential supply chains.

Peter Davidson: 18:53

And it also underlines the continued confidence in the long term role of storage and logistics infrastructure. And these are long life capital intensive assets, and the sector continues to invest significantly with about £1,700,000,000 planned over the next five years. But as you quite rightly pointed out Callum, all of that is irrelevant if we don't have trained and competent workforce to operate those assets efficiently and safely. And actually workplace health and well-being is something that is a particularly hot topic with the UK government at the moment when it looks to see the amount of hours that are lost through poor workplace health and well-being, whether that's through stress or fatigue or lots of other drivers. And it really is important to understand the role that employers can play in being able to ensure that workplace health and well-being is effectively managed within their organisations.

Peter Davidson: 19:58

And this is one of the reasons that we've been working with lots of different stakeholders, including unions and the health and safety executive, to develop those principles that I mentioned earlier. And those principles come off of the incredible success of the process safety leadership group principles of process safety leadership, which were launched following the Buncefield explosions and fires. They proved instrumental in improving process safety management across The UK, and we're building on the back of those successes with the Workplace Health and Well-being principles.

Callum O'Reilly: 20:36

So Peter, before I let you go, you also give us a taste of what else delegates can expect at the upcoming tank storage conference?

Peter Davidson: 20:44

Yeah, like I said we're really proud of the conference, it's been running for many many years now, and we always have fantastic attendance from our delegates, so what folks can expect this year is a really strong program that reflects both the strategic issues and the practical realities facing our sector. What I would like to highlight here is the fact that the event brings together policy, regulatory and technical perspectives to give a full picture of how the sector is evolving in practice. And the agenda would include a keynote from speakers who are expert contributors in the area, alongside sessions looking at evolving role of bulk storage in the context of energy transition and supply security. There's also a dedicated session on security of supply, including its importance to critical sectors such as defense. And alongside that, we've mentioned earlier Callum that there's a strong focus on safety with contributions from the Health and Safety Executive on leadership, as well as the Environment Agency on exploring preparedness for high consequence events under coma.

Peter Davidson: 22:00

And the exhibition, as you know, which runs in parallel with the conference, is absolutely a key part of the event. It provides a platform for companies across the sector to showcase their innovation, technology and services that really do support the safe and efficient operation of bulk storage infrastructure. And it also creates an important opportunity for networking and practical knowledge exchange across the industry. And above all, the event is about people. It's a chance for the sector to come together, share knowledge, and have important discussions about the issues that matter the most.

Peter Davidson: 22:40

So I think delegates can expect another fantastic event with a very full agenda, but also a genuinely collaborative and forward looking event that reflects the importance of the sector today and as we collectively look to the future.

Callum O'Reilly: 22:56

Peter, that sounds like a really great agenda, and we're really looking forward to attending and learning a little more about some of the themes that we've touched upon today. My thanks again for joining us once again Peter, really grateful for your time and it's been great to hear your insights into the changing role of storage and logistics infrastructure and some of the challenges and opportunities presented by the energy transition, as well as what delegates can expect from this year's Tank Storage Conference. We're really grateful for your time, so thanks again.

Peter Davidson: 23:26

No thanks Callum, really appreciate the opportunity to do another podcast with you, thank you to you and the whole team at Hydrocarbon Engineering.

Callum O'Reilly: 23:34

That was Peter Davidson, CEO of the Tank Storage Association, sharing his thoughts on the evolving role of the tank storage sector, the industry's response to the energy transition, and the importance of resilience, safety, and workforce well-being. If you d like to learn more about the TSA s upcoming Tank Storage Conference or the Association s annual review of the Bulk Storage and Energy sector, please head over to their website tankstorage.org.uk. Thanks for listening to the Hydrocarbon Engineering Podcast. Don't forget to subscribe and we'll be back soon with another episode.

Advert: 24:20

This episode of the Hydrocarbon Engineering Podcast is sponsored by Sherwin Williams Protective and Marine. Sherwin Williams Protective and Marine delivers world class industry subject matter expertise, unparalleled technical and specification service, and unmatched regional commercial team support to customers around the globe, including in the energy market. The company's broad portfolio high performance coatings and systems, including protective liquid and powder coatings as well as fire protection coatings, excel at combating corrosion and help customers achieve smarter, time tested asset protection. For more information, visit protective.sherwin.com.