Comprehensive Solution for Off-Spec & Landlocked Gasoline
THE PROBLEM
When companies find themselves with off-spec inventory that cannot be sold, their usual response is to pay another company to dispose of the product. However, Altiras offers an alternative solution that can help turn this situation into a profitable one.
As an example, Altiras purchased 105,000 barrels (BBL) of rejected gasoline from a landlocked midwestern company. Unfortunately, the gasoline was contaminated due to an open valve, making it unsuitable for sale. The off-spec gasoline was then placed into leased slop tanks with other off-spec materials and left for years, further decreasing its value.
However, Altiras saw potential in this off-spec inventory and decided to process the product to make it profitable. This required transportation through pipeline shipping, which limited the potential sales market to areas outside of the United States. Once processed, the gasoline was now usable and could be sold, turning a previously unprofitable asset into a valuable one.
This approach by Altiras shows that there are alternative solutions to off-spec inventory that can benefit both the company and the environment. By finding creative solutions to turn unusable inventory into profitable assets, companies can reduce their waste and environmental impact while also generating revenue.
ALTIRAS SOLUTION
Altiras took a hands-on approach to turn the off-spec gasoline into a profitable asset. The company purchased the contaminated gasoline, committing to transportation and processing of the product.
The first step in this process was to transport the off-spec gasoline through pipeline shipping to a second tank. This allowed the gasoline to be consolidated with other off-spec materials, further optimizing the transportation process. The next step was to ship the off-spec gasoline by truck to a third tank located near the Mississippi River.
From there, Altiras coordinated the barge shipping of the off-spec gasoline from the Midwest to the Gulf Coast. This mode of transportation allowed for cost-effective and efficient transport of the product.
Once the off-spec gasoline arrived at the Gulf Coast, Altiras processed the product into a usable material. This involved removing the contaminants that had made the gasoline off-spec and transforming it into a marketable product. The resulting material could then be sold internationally, creating a valuable asset out of a previously unusable one.
By taking a comprehensive approach to the transportation and processing of off-spec inventory, Altiras was able to create a profitable outcome. This approach shows that there are alternative solutions to off-spec inventory that can benefit both the company and the environment. By reducing waste and generating revenue, Altiras set an example for companies looking to turn their unusable assets into profitable ones.
THE RESULTS
Altiras’s comprehensive approach to off-spec inventory allowed the company to turn otherwise unusable gasoline into a valuable asset within a short timeframe of six months.
Altiras took on the responsibility of removing the off-spec gasoline from the leased tanks, which included all engineering, processing, and transportation necessary to recycle the material. This meant that the customer did not have to bear any additional costs associated with the disposal of the off-spec inventory.
Altiras’s team of experts managed the entire process, from consolidating the off-spec gasoline with other materials to coordinating transportation by pipeline, truck, and barge. They also processed the material into a usable form, removing contaminants that had made the gasoline off-spec.
By taking on this comprehensive approach, Altiras was able to create value out of what would have otherwise been a waste product. They were also able to do so at no cost to the customer, making it a win-win situation for both parties.
This case highlights the importance of finding alternative solutions to off-spec inventory that can benefit both the company and the environment. By taking a comprehensive approach, companies can reduce their waste, generate revenue, and minimize the environmental impact of their operations. Altiras’s successful outcome serves as an example for other companies looking to turn their unusable assets into profitable ones.