Post on 25-Mar-2021
INNOSPEC MARINE FUEL SPECIALTIES
JOINT SOUTHERN BRANCH10.10.2018
Corporate HQEnglewood, CO
Regional Locations USA, UK, Continental Europe, Africa, Russia, Brazil and Asia
ManufacturingGlobal Network of Testing & Production Facilities: USA, UK, France, Italy, Spain and Germany
COMPANY PROFILE: Innospec, Inc. NASDAQ (IOSP)
© 2017. All Rights Reserved. Innospec, Inc.
$1.3 billion sales1900 Employees in
23 countries
Business Profile Business Focus
Fuel SpecialtiesPerformance Chemicals
Oilfield ServicesOctane Additives
CORPORATE STRUCTURE
Fuel Specialties Oilfield ServicesPerformance Chemicals Octane Additives
Fuel Specialties Oilfield ServicesPerformance Chemicals Octane Additives
PERFORMANCE CHEMICALS (PERSONAL & HOME CARE)
• Surfactants, benzoate esters, siliconesWhat We Do
• Luxurious foam/lather; low irritation; shine; skin-feelProduct Benefits
• Formulators and retailers of skin care, hair care, home care, agrochemical and mining products
Customers
• Innovative Technology & Customer ServiceHow We Compete
• Product performance – skin care and hair care • Natural; x-free in premium brands
Market Drivers
• Established – strong in technology innovation• Potential adjacent market development – ag, mining,
construction, agchem
Market Position
PERSONAL CARE – BEHIND THE BRANDS
Fuel Specialties Oilfield ServicesPerformance Chemicals Octane Additives
OILFIELD SERVICES
• Work with operators across all major basins to deliver custom chemical solutions and services for drilling, completions, production and pipeline applications
What We Do
• A true one-stop shop that provides chemical expertise for drilling, completion, production and midstream; in-house technical expertise and evaluation; first-class R&D capabilities
Product Benefits
• E&P Operators; service companies; drilling companies; pipelinesCustomers
• Direct to operator; regional laboratory services; innovative technology and customer service
How We Compete
• Oil & gas demand; changes to drilling, completion, and production techniques;
• Minimize environmental impact
Market Drivers
• Creating a new mid-tier leader based on technology and serviceMarket Position
Fuel Specialties Oilfield Services Performance Chemicals Octane Additives
TEL – MOTOR GASOLINE & AVIATION
• One remaining country• Potential phase out in 2018-2019
Motor Gasoline (Octane Additives)
• TEL still mandated in 100LL • Essential for general aviation fleet• FAA program targets first alternatives by
2019
Aviation Gasoline (Fuel Specialties)
Fuel Specialties Oilfield Services Performance Chemicals Octane Additives
FUEL SPECIALTIES
• Fuel Additives – detergents; cold flow improvers; lubricity improvers; corrosion inhibitors; conductivity improvers – focus on all fuels
What We Do
• Make fuels on-specification; create brand-leading & premium fuelsProduct Benefits
• Major oil companies, fuel marketers /retailers; pipelines, fleets, marine, aviation
Customers
• Innovative technology & customer serviceHow We Compete
• Miles/vehicles on the road; legislation, fuel economy & engine technology
Market Drivers
• Market leaderMarket Position
FUEL SPECIALTIES – BEHIND THE BRANDS
LPG
Gasoline & Naphta
Jet Fuel
Light Heating Oil
Diesel and Gas Oil
Marine Bunker Fuel
Industrial Heavy Fuel Oil
Crude Oil
Crud
eO
il
UNIQUELY – WE TREAT THE WHOLE BARREL…
TERMINAL & STORAGE
PIPELINE & STORAGE
PRODUCTION
REFINERY
DRILLING
AVIATION FUEL
HEAVY DUTY & FLEETMARINE PASSENGER VEHICLESPOWER
FRACTURING & STIMULATION WELL TO WHEELS
INNOSPECMARINE SPECIALTIES
CUSTOMER FOCUS: OUR TECHNICAL SERVICE
Innospec is one of the few truly dedicated manufacturers of additives designed to improve fuel performance within the marine industry
We offer a dedicated marine organisation with outstanding technical and market background from the industry
- Most of our team have been in shipping or have worked for OEMs- They are familiar with issues that superintendents have to face on board
daily- We speak the same language
We provide a fully equipped analytical laboratory for evaluation of fuel quality and deposits to quickly identify the problem and propose a solution
Although our people are particularly specialized, the marine technical team benefits from the knowledge gathered in other Innospec fuel markets. This ensures they are always one step ahead and it is the first customer choice: lubricity issues with MGO is a clear example
CUSTOMER FOCUS: OUR TECHNICAL SERVICE
Engineering services are critical to provide dosing equipment for use on board the ship
or at power stations
We have entered into partnerships with 3rd party test facilities to monitor and track
changing marine fuel quality and demonstrate additive performance in current fuels
Have taken a rigorous performance verification process with 3rd Parties, such as Shell
MPIC test beds and Lloyd’s Register Product Verification Service (PVS)
Active membership in industry groups and regular contributions to technical conferences
highlight our commitment to continuous product development
CUSTOMER TECHNICAL SERVICE
Technical Competencies- Detailed product knowledge and application- Understanding of fuel production and refinery technology- End use application and technology understanding
(e.g. marine engines, automotive engine technology)- Fuel distribution processes, e.g. pipelines, terminal, bunker operations- Knowledge of fuel properties and their influence on product quality / engine
performance- Understanding of customer specifications and associated legislation- Influencing key industry bodies e.g. ISO
INNOSPEC PARTICIPATION IN INDUSTRY GROUPS
Innospec are members of and participate in several of the leading groups associated with the Marine fuel industry
Innospec are represented on the ISO working group responsible for the development of the Classification & Specification of Marine Fuels –ISO8217
International Council of Combustion Engines (CIMAC) working group 7 (Fuels)
British Standard Institute (BSI) technical committee for Liquid Fuels PTI/002
Institute of Marine Engineering Science and Technology (IMarEST)
Cyprus Shipping Chamber Technical Subcommittee
Society of Naval and Marine Architects and Engineers (SNAME)
Chair of ASTM Group on Stability Methods
Chair of the Technical Management Committee for the Energy Institute
SHIPPING CUSTOMERS
ISO 8217
ISO 8217
ISO 8217 - Petroleum products - Fuels (class F) - Specifications of marine fuels is the
standard to which most commercial marine fuel is bought against
The ISO 8217 standard as we know it came into being in 1987
As a result of the need for greater controls in relation to marine fuels
CIMAC fuel specifications provided the framework for the first ISO 8217 standard which
has grown and developed as fuels have changed
ISO 8217 is designed to protect the end user, giving them a fuel that is fit for purpose
ISO 8217
To a large extent, this standard does protect the end user
In 2017, there were approximately 220,000 bunker stems delivered to commercial ships
Of those stems and of those tested, approximately 10% were off spec for at least 1 parameter of
ISO 8217 (based on feedback from various testing labs)
Off spec for ISO 8217 does not necessarily mean the vessel encountered problems, may have
been a viscosity was too high etc.
The ISO 8217 specification is specifically designed to reflect the changes in the industry with one
eye on what we may expect moving forward
However despite this level of protection, which works for most stems delivered to vessels, issues
can still occur
OPERABILITY ISSUES ONBOARD
ISSUES ONBOARD, WHAT TO DO ABOUT IT
Issues onboard do happen, take fuels from Houston and other ports for example
Primarily there are two types of issue that can happen onboard in HFO
Stability/Compatibility
Contamination
There are solutions for both instances onboard which involve additives
Ashaltenes
WHAT CAUSES SLUDGE FORMATION (INSTABILITY)= ASPHALTENE AGGLOMERATES AND INORGANIC MATTER
Facts: -Ashaltenes are oraganic high energy heavy HC formations contained within all HFOs.
-They can consist of up to 10% or even more of the total HFO’s content
-By nature they tend to agglomerate = connect with each other
-Fuel sludge mainly consists of asphaltenes that have dropped out of fuel’s suspension
-Inorganic matter is all other parts of the sludge such as rust – dirt – sand - catfines etc.
Stable condition
AsphaltenesResins
SaturatedAromatics
After losing the resins, asphaltenesagglomerates and forms sludge
Loses it’s resins for example after going through refining processes or blending incompatible fuels
Legend
HOW ASPHALTENES DESTABILIZE OUT OF FUEL AS SLUDGE
AsphaltenesResins
SaturatedAromatics
Asphaltene kept in suspension by the help of stabilizer
Chemical stabilizer replaces the lost resins
Legend
Addition of Treatment
Dispersant
HEAVY FUEL OIL – HOW STABILIZER MAINTAINS STABILITY OF ASPHALTENES
Unstable condition
CONTAMINATION
Houston for example, multiple explanations of the problem but what is the solution
If a ship is stranded, the most important objective is to get the ship and crew safely
alongside
This is called GET ME HOME
This can be achieved by diluting a problem fuel with a good fuel
Additives can help this process by enabling the two fuels to be compatible
This is a last measure, only to be used in an emergency case when a ship is stranded
AsphaltenesResins
SaturatedAromatics
Re-emulsify the existing agglomerations -clean up effect, make good fuelfrom sludge.
Dispersant looses bond between asphaltenesagglomerates
Legend
Addition of Treatment
Dispersant
HEAVY FUEL OIL – HOW DISPERSANTS RE-GENERATES USEFUL FUEL FROM SLUDGE AND CAN BE USED FOR TANK CLEANING
Agglomerated asphaltenes into sludge
RESULTS OF “IN SERVICE” HFO TANK CLEANING WITH DISPERSANTAfter 1 month After 3 months (4 tank fills)