Matching Gasoline Supply with Distribution Requirements Optimizes Depot Storage Capacity and Performance

This study was done for one of the Nigerian National Petroleum Corporation （refiner） depot supplied by a multi-product （gasoline, diesel and kerosene） pipeline. Distribution/loading facility designed for a total of six arms： two 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 ullage problem at sustained supplies, gross under utilization 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 products supply capacity to match loading and minimize 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 maximized to 2：3） thereby correcting the apparent mismatch between the supply and distribution chain capacities. The modification has enabled the refiner to increase depot and upstream supply chain utilization