ExxonMobil Interview: Customer Demand is Driving Singapore Mass Flow Meter Expansion

Iain White, field marketing manager, ExxonMobil Marine Fuels & Lubricants

Last month ExxonMobil announced it will continue to embrace mass flow meter (MFM) technology in Singapore in a big way. In recent years the supplier has been one of the technology's most vocal advocates and in 2012 was the first to use a Maritime and Port Authority of Singapore (MPA) approved MFM system during a commercial bunker delivery at the port.

ExxonMobil now says that by July 2014 it will be supplying the majority of its bunkers in Singapore using MPA approved MFM systems. By then it will have doubled the number of chartered vessels it has featuring the technology to a total of 6.

Following this latest announcement, Ship & Bunker spoke to Iain White, field marketing manager at ExxonMobil Marine Fuels & Lubricants, to learn more about the technology and what was driving the company's expansion plans.

Customer Demand

S&B: Iain, thanks as always for talking the time to talk to us today. It wasn't so long ago, November last year in fact, that we were discussing the addition of a further two MPA approved MFM capable vessels to your fleet. Since then of course we've also had MPA's announcement last month that from January 1, 2017 mass flow meters will be mandatory for MFO bunkering in Singapore.

What was the thinking behind doubling your mass flow meter capability in Singapore at this point in time? In particular, how much of a factor was the MPA's announcement, or was the decision made more because of customer demand, or indeed is this all part of a set long term plan?

IW: It is more driven by customer demand. We have been advocating flow meters to our customers for some time now and have received a very positive response. The expansion is to ensure we meet the demand of our customers, allowing them to benefit from increased transparency and accuracy throughout the whole fuel measurement process.

S&B: Would you say the demand has been greater than expected?

IW: We have certainly seen strong demand and find customers are welcoming the transparency benefits and taking advantage of the potential time savings.

S&B: You said by July 2014 you'll be supplying the majority of bunkers using MFMs. Will that be as a result of your own bunkering procedures or is that more a comment on how you see customer demand shaping up? Indeed, will customers still have the option of whether or not to use a mass flow meter for bunkering?

IW: We don't find people are asking to do it the old way. We are looking to ensure the customer can purchase fuel via mass flow metering technology if they wish, so we are increasing capacity so we can be in a position to do that.

Next Generation Technology

S&B: In 2012 ExxonMobil became the first bunker supplier to use a MPA approved MFM system, which for real world bunkering gives you the most experience in using the technology. As more players in Singapore now start adopting MFMs, what can you tell us about how straight forward it has been to bring the technology into use?

IW: Mass flow metering is next generation technology for the marine industry, which helps explain why it has taken time to develop fully. To ensure mass flow metering functions correctly on a ship involves several factors:

1. Managing the high flow rate, considering 500 metric tonnes (mt) or more of fuel per hour can be pumped through the system.
2. The barge itself is a moving and vibrating platform, and the machinery under operation is always vibrating, making it more challenging to conduct measurement accurately.
3. As you go through the process of discharging the barge, you have to strip out each tank in turn to transfer all of the product out. You have to slow the pumping rate down to fully empty the tank, and you do get some air intake resulting in a dual flow of air and fuel. The mass flow metering process is now able to detect and account correctly for this dual flow. Importantly, mass flow metering also measures in both directions, whilst loading the product onto the barge and then discharging off the barge onto the ship.

Given these factors, we have built up a lot of experience using our expertise to ensure measurement is as accurate as possible. We have now proven that you can achieve this with a mass flow metering system, while we have also been working with SPRING (Standards, Productivity and Innovation Board) Singapore and MPA to establish protocols for the technology.

S&B: So this doesn't sound like its "plug and play" technology then?

IW: No, not at all.

The Benefits

S&B: MFM technology has been well documented on Ship & Bunker, and ExxonMobil is currently embarking on a campaign to help educate bunker buyers on the technology's benefits - not least of which are savings of up to three hours and $7,000 per delivery. Do you think the majority of buyers now understand the benefits of using MFMs, or is there still a big job to be done in getting the message out there?

IW: There is still work to be done to communicate the full benefits, and how operators can achieve them. We are continuing to help them understand how mass flow metering works and consider how their operations could benefit, such as from the simple transparency of an immediate accurate reading on-board a vessel, or a 3 hour time saving that might make the difference between making a Suez canal  transit or not. A few hours saved in the bunkering operation can make all the difference.

S&B: For those that are choosing to bunker with you and use MFMs, are there any reasons that stand out?

IW: Different people see different benefits. It is difficult to measure the bunker quantity accurately once it's on board the ship. We have very stringent procedures that vessel engineers must follow to measure fuel accurately the traditional way but it's also challenging to do on a barge. So some people are choosing MFMs because it's more efficient. Some want the transparency, some want the time saving.

But our offer is also one that ensures quality right through the supply chain and so we feel it stands out as being different. MFM is one part, a key part, but we will always have the fuel quality as well.

Mandatory MFMs

S&B: ExxonMobil is obviously a firm believer in using MFM technology. Any comment on MPA's decision in mandating the use of MFMs in Singapore?

IW: I think it demonstrates their commitment to the quality of operations in Singapore. Given media reports suggest that the refuelling processes employed by some suppliers are not fully transparent, it is understandable that the MPA are taking the extra steps to prevent this. ExxonMobil is a longstanding advocate for the use of mass flow metering technology in the marine industry to offer a basic process that provides benefits all round. 

S&B: There's been plenty of speculation on what the impact of mandatory MFMs might be on the Singapore market, from being a catalyst for market consolidation, to raising prices and lowering sales volumes. Any comment on how you see the market being impacted for better or worse by mandatory MFMs?

IW: From a customer point of view, the customer gains the efficiency in time saving using a mass flow metering system compared to the traditional method, and so does the supplier. The industry will see the benefits.

In the same way as in retail fuel stations, the consumer should have a reading they get promptly and can trust. We don't see it impacting cost, we see it demonstrating that we can make the process and industry more efficient, from both a supply and customer side. It should be beneficial all round, with no down side at all.

S&B. Finally, any plans to install and use MFMs in other ports around the world?

IW: I think we've seen that other ports are looking at it, and we've been looking at it as a potential option but I have nothing to report at this time. But it certainly makes sense.