Thursday, 16 October 2025

Optimising Depot Storage and Distribution Efficiency through Matching Gasoline Supply to Demand | Chapter 3 | Engineering Research: Perspectives on Recent Advances Vol. 11

 

The primary aim of the study is to optimise depot storage capacity and performance by aligning gasoline supply with distribution requirements. This study was conducted for one of the Nigerian National Petroleum Corporation (refiner) depots supplied by a multi-product (gasoline, diesel and kerosene) pipeline. The depot is supplied by a six-inch multi-product (gasoline, diesel and kerosene) pipeline at 82 m3/hour and loading/distribution of 100 m3/hour per arm inside the depot.

 

The Nigerian National Petroleum Corporation, a refiner, owns and operates a petroleum products pipeline network connected to its 21 storage depots across Nigeria. These storage depots are supplied by a multi-product (gasoline, diesel and kerosene) pipeline network. Since the early 1990s, as gasoline demand increased, the entire supply/distribution chain appeared inadequate. The primary aim of the study is to optimise depot storage capacity and performance by aligning gasoline supply with distribution requirements. This study was conducted for one of the Nigerian National Petroleum Corporation (refiner) depots supplied by a multi-product (gasoline, diesel and kerosene) pipeline. The depot is supplied by a six-inch multi-product (gasoline, diesel and kerosene) pipeline at 82 m3/hour and loading/distribution of 100 m3/hour per arm inside the depot. Distribution/loading facility designed for two arms each for gasoline, kerosene and diesel (or 33.33% for each product), whereas gasoline storage capacity is 55%, diesel, 33%, kerosene 11%, and slops, 1% of the total depot capacity. The design supply to distribution chain capacity ratio showed a mismatch, which in actual operation becomes 2:1. The above design created a ullage problem at sustained supplies, gross under-utilisation of supply chain infrastructures and poor operational performance. After a technical evaluation, a section of the depot storage to loading pipeline network was re-designed and modified to enable product supply capacity to match loading, and minimise storage. Hence, the gasoline loading became 66.67%, kerosene and diesel, each of 16.67%, increasing the actual supply to distribution chain capacity ratio from 2:1 to 2:2 (and when required, can be maximised to 2:3), thereby correcting the apparent mismatch between the supply and distribution chain capacities. Findings showed significant improvement in pipeline transportation scheduling, depot stock and overall product distribution. The modification has enabled the refiner to increase depot and upstream supply chain utilisation.

 

 

Author(s) Details

Eric Obiora Okeke
Nigerian National Petroleum Corporation, PMB 5373, Port Harcourt, Nigeria.

 

Please see the book here :- https://doi.org/10.9734/bpi/erpra/v11/6218

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