Article Highlights

Maintaining the integrity of our network of underground storage systems is a priority for obvious safety reasons, and these systems represent a risk that the company views seriously.

1

The exercise won’t be cheap. It costs an estimated $600,000 to $700,000 to upgrade the tanks, pipelines and related fittings at each site to a standard suitable for the next 30 years.

2

Out of sight, not out of mind

Out of sight, not out of mind

Photo: One of five 17-year-old steel tanks is removed to make way for new non-corrodible fibreglass tanks at Caltex’s Northmead site in Sydney

When motorists pull up at a Caltex pump, lift the nozzle and safely fill their cars, they can only do so because a hidden maze of equipment is working reliably.

"Nobody ever sees the underground storage tanks and equipment at our service stations and reseller premises," said Daryl Osborne, Caltex Project Manager Design, Image & Procurement. "Most people know absolutely nothing about them."

Out of sight can mean out of mind. Not so for Caltex. Maintaining the integrity of our network of underground storage systems is a priority for obvious safety reasons, and these systems represent a risk that the company views seriously.

That’s the main reason behind the recent launch of a high priority project to improve the reliability of underground tanks, some of which are over 30 years old. The program will involve reviewing and upgrading underground infrastructure initially at over 450 Caltex sites and require significant investment over the next 10 to 15 years.

"The project is targeting one of the highest categories of operating risk in Marketing," said Mike McMenamin, Acting General Manager Marketing, at a workshop to launch the project.

The exercise won’t be cheap. It costs an estimated $600,000 to $700,000 to upgrade the tanks, pipelines and related fittings at each site to a standard suitable for the next 30 years. As part of the program, an economic and network review will determine which sites will stay in the Caltex network.

The process typically involves replacing the five to eight old steel tanks and pipes with three multi-compartmented double shell fibreglass tanks and thermoplastic pipes. Each tank is about three metres in diameter and 12 metres long.

Initially Caltex is focusing on sites at which it owns the infrastructure or has responsibility for it, with the process already under way. In most cases the whole system is being removed and replaced. "It’s usually not sensible from a risk perspective or economically to replace one or two pieces of a fuel system," explained Daryl.

The project is being run by a cross functional team of stakeholders from Caltex’s Marketing, Supply & Distribution and corporate departments.