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FUEL TASK FORCE
FUEL SUPPLY ACTION
PLAN
OTTMAR CHAVEZ PINERO
WESLEY ELIZABETH CULLEN
ENRIQUE SUCH
PUERTO RICO FUEL SUPPLY TASK FORCE
HIGH LEVEL OVERVIEW
Problem Statement
Loss of centralized power grid has resulted in the Puerto Rico population and infrastructure to be fully
dependent on a decentralized power source relying on diesel, gasoline, and propane fuel to operate and survive.
Current distribution infrastructure is not equipped to support day-to-day demand requirements.
Objectives:
1. Focus & protect critical infrastructure (Hospitals, Ports, Financial, Food Chain)
2. Protect the most vulnerable
3. Get the PR industry stabilized and people back to work (Create some normalcy)
4. Ensure private sector involvementand empowerment
Propane
Task Force Fuel Supply
Strategy
Stabilize fuel distribution to ensure consistent and reliable supply, while
optimizing resource utilization across the supply & distribution network
Tactics
Protect and Optimize Current
Bulks Fuel (FTL) Distribution
Network
Enhance and strengthen LTL
distribution network
Gasoline Diesel
PUERTO RICO FUEL DISTRIBUTION STRATEGY
MARKET DIESEL SUPPLY
Core Initiatives
Strengthen Regional LTL
Distribution Apparatus
Empower & Support
Industry
Customer Capacity
Optimization
Resource
Requirements
(trucks, tanks, skills,
etc.)
Policy
Management
• FEMA / DOD to
manage Public Sector
and Public Health
• Add Frac Tanks to
network to manage
Boptail / Top Loaders
• Add equipment to
support constant fuel
supply to service
stations (diesel and
gas)
• 24HR service stations
near major industry
• Provide consulting and
expertise to wholesale
market to support
additional distribution
requirements.
• Full service model for
service stations with
diesel
• Add tanks to facilities
to enable gas / diesel
supply to employees
and service providers
• Purchase / contract
dedicated trucks to
facilitate supply to
sites
• Define clear
weekly/monthly fuel
requirements to plan
supply schedules
with fuel providers
• Must increase on-
site full storage
capacity to a
minimum of 5 days of
supply (DOS)
• Redundant power
generation for critical
fuel terminals
• FEMA Trucks - Public
Sector Support &
Recovery Efforts
• 100 trucks / tanks to
support fuel
distribution (10K Gal)
• 15 Frac Tanks to
increase LTL storage
capacity
• 50,000tanks (10 gal)
with Diesel -
Candungos
• 5,000drums (50 gal)
• 2,500totes (250 gal)
• Consulting /
Operational support
to fuel wholesalers
• Oil, Filters, Parts to
support PMP of
generators
• Adapters for bottom
feed tank refueling
• Security resources
• Minimize red tape
needed to ensure
industry can set up
temporary self-
sustaining
operations.
• Facilitate delivery of
critical requirement
• Consistent
communication and
updates on progress
vs strategy
Protect current fuel supply infrastructure and provide support on creating redundant temporary power generation to maintain
supply flowing and ensure proper equipment maintenance
Energize Puerto Rico strategically to reduce overall critical asset support, network pressures & industry impact
4 Presentation Title (Edit on Slide Master) | June 1, 2015 | Confidential, for Internal Use Only
FUEL DISTRIBUTION STRATEGY
CREATING A SENSE OF NORMALCY
Public Sector Private Sector
FEMA / DOD
Private Sector w. Distribution Capacity
by Fed. Gov’t
FTL / LTL Fuel Distribution – Top Loaded
• Public Sector RecoveryEfforts & Public Health will be managed 100% FEMA and DOD.
• Private Sector will be managed by Private Sector Fuel w. Assets and Expertise from FEMA / DOD.
• Optimize fuel terminal performanceby focusing on Bottom Loading / High Volume Equipment.
• Wholesale distribution and Government Assets to bolster distribution to mass market.
• Empower and encourage industry to add capacity supply itself in the short-term
Bulk Distribution – Bottom Loaded Tanks
Frac Tanks Frac Tanks
FEMA Public Sector
Support / Public Health
FEMA Transport
Capacity / Private
Sector Fuel Supply
New Fuel Distribution
Capacity
FUEL TASK FORCE RECOMMENDATIONS
1. Request to FEMA:
a) 100 trucks/tanks to support diesel distribution across the island.
b) 15 Frac Tanks to serve as additional capacity, strategically positioned around the
island ( mobile units)
c) 50,000 gas tanks (10 gallon capacity) “Candungos” Fueled.
d) 5000 drums to increase storage capacity in commercial businesses.
e) 10000 totes to increase storage capacity in commercial businesses.
2. Request to Fuel Partners:
a) 24 hour Fuel Stations: All 60% of 1,100 Fuel Stations with Diesel storage to be open for
continuous refueling.
b) 24 hour fuel stations and gasoline fuel supply near major industrial sites
3. Request to Private Industry:
a) All commercial business need to invest to increase storage capacity to 5 Days On-
Hand ( DOH).
b) Industry needs to invest in transport & storage capacity to support short term
operations (6-12 month)
NEW DISTRIBUTION LANDSCAPE.

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Puerto Rico - Fuel Task Force - Strategic Plan

  • 1. FUEL TASK FORCE FUEL SUPPLY ACTION PLAN OTTMAR CHAVEZ PINERO WESLEY ELIZABETH CULLEN ENRIQUE SUCH
  • 2. PUERTO RICO FUEL SUPPLY TASK FORCE HIGH LEVEL OVERVIEW Problem Statement Loss of centralized power grid has resulted in the Puerto Rico population and infrastructure to be fully dependent on a decentralized power source relying on diesel, gasoline, and propane fuel to operate and survive. Current distribution infrastructure is not equipped to support day-to-day demand requirements. Objectives: 1. Focus & protect critical infrastructure (Hospitals, Ports, Financial, Food Chain) 2. Protect the most vulnerable 3. Get the PR industry stabilized and people back to work (Create some normalcy) 4. Ensure private sector involvementand empowerment Propane Task Force Fuel Supply Strategy Stabilize fuel distribution to ensure consistent and reliable supply, while optimizing resource utilization across the supply & distribution network Tactics Protect and Optimize Current Bulks Fuel (FTL) Distribution Network Enhance and strengthen LTL distribution network Gasoline Diesel
  • 3. PUERTO RICO FUEL DISTRIBUTION STRATEGY MARKET DIESEL SUPPLY Core Initiatives Strengthen Regional LTL Distribution Apparatus Empower & Support Industry Customer Capacity Optimization Resource Requirements (trucks, tanks, skills, etc.) Policy Management • FEMA / DOD to manage Public Sector and Public Health • Add Frac Tanks to network to manage Boptail / Top Loaders • Add equipment to support constant fuel supply to service stations (diesel and gas) • 24HR service stations near major industry • Provide consulting and expertise to wholesale market to support additional distribution requirements. • Full service model for service stations with diesel • Add tanks to facilities to enable gas / diesel supply to employees and service providers • Purchase / contract dedicated trucks to facilitate supply to sites • Define clear weekly/monthly fuel requirements to plan supply schedules with fuel providers • Must increase on- site full storage capacity to a minimum of 5 days of supply (DOS) • Redundant power generation for critical fuel terminals • FEMA Trucks - Public Sector Support & Recovery Efforts • 100 trucks / tanks to support fuel distribution (10K Gal) • 15 Frac Tanks to increase LTL storage capacity • 50,000tanks (10 gal) with Diesel - Candungos • 5,000drums (50 gal) • 2,500totes (250 gal) • Consulting / Operational support to fuel wholesalers • Oil, Filters, Parts to support PMP of generators • Adapters for bottom feed tank refueling • Security resources • Minimize red tape needed to ensure industry can set up temporary self- sustaining operations. • Facilitate delivery of critical requirement • Consistent communication and updates on progress vs strategy Protect current fuel supply infrastructure and provide support on creating redundant temporary power generation to maintain supply flowing and ensure proper equipment maintenance Energize Puerto Rico strategically to reduce overall critical asset support, network pressures & industry impact
  • 4. 4 Presentation Title (Edit on Slide Master) | June 1, 2015 | Confidential, for Internal Use Only FUEL DISTRIBUTION STRATEGY CREATING A SENSE OF NORMALCY Public Sector Private Sector FEMA / DOD Private Sector w. Distribution Capacity by Fed. Gov’t FTL / LTL Fuel Distribution – Top Loaded • Public Sector RecoveryEfforts & Public Health will be managed 100% FEMA and DOD. • Private Sector will be managed by Private Sector Fuel w. Assets and Expertise from FEMA / DOD. • Optimize fuel terminal performanceby focusing on Bottom Loading / High Volume Equipment. • Wholesale distribution and Government Assets to bolster distribution to mass market. • Empower and encourage industry to add capacity supply itself in the short-term Bulk Distribution – Bottom Loaded Tanks Frac Tanks Frac Tanks FEMA Public Sector Support / Public Health FEMA Transport Capacity / Private Sector Fuel Supply New Fuel Distribution Capacity
  • 5. FUEL TASK FORCE RECOMMENDATIONS 1. Request to FEMA: a) 100 trucks/tanks to support diesel distribution across the island. b) 15 Frac Tanks to serve as additional capacity, strategically positioned around the island ( mobile units) c) 50,000 gas tanks (10 gallon capacity) “Candungos” Fueled. d) 5000 drums to increase storage capacity in commercial businesses. e) 10000 totes to increase storage capacity in commercial businesses. 2. Request to Fuel Partners: a) 24 hour Fuel Stations: All 60% of 1,100 Fuel Stations with Diesel storage to be open for continuous refueling. b) 24 hour fuel stations and gasoline fuel supply near major industrial sites 3. Request to Private Industry: a) All commercial business need to invest to increase storage capacity to 5 Days On- Hand ( DOH). b) Industry needs to invest in transport & storage capacity to support short term operations (6-12 month) NEW DISTRIBUTION LANDSCAPE.