What Is A Floating Storage Unit And How Is It Regulated?

A Floating Storage Unit (FSU) is a type of vessel or barge used for storing liquids, primarily crude oil or petroleum products, offshore. FSUs enable storage of large quantities of oil close to production sites or ports without the need for immediate pipeline or tanker transport. They play a critical role in oil logistics, especially in regions with limited onshore storage.

What Is A Floating Storage Unit?

• FSUs are often converted tankers or purpose-built vessels designed to store hydrocarbons for extended periods.
• Unlike Floating Production Storage and Offloading (FPSO) units, FSUs generally do not have processing capabilities and serve primarily as storage.
• They are anchored at designated offshore locations or near ports to facilitate the transfer of oil between producers and tankers.

Regulation Of FSUs In Indian Waters

Directorate General of Shipping (DGS)

• Regulates the registration, inspection, and certification of FSUs under the Merchant Shipping Act and related maritime safety standards.
• Ensures compliance with International Safety Management (ISM) Code and SOLAS (Safety of Life at Sea) regulations.

Ministry of Environment, Forest and Climate Change (MoEFCC)

• Oversees environmental clearances and enforces compliance with pollution control norms under the Environment Protection Act.
• Implements MARPOL (International Convention for the Prevention of Pollution from Ships) regulations to prevent oil spills and marine pollution.

Coast Guard and Port Authorities

• Monitor anchorage, safety protocols, and emergency response preparedness.
• Enforce the Oil Pollution Act and coordinate spill response.

Petroleum and Explosives Safety Organization (PESO)

• Regulates safety standards related to storage and handling of hazardous materials onboard FSUs.

International Regulations

FSUs operating in Indian waters must comply with IMO conventions including MARPOL, SOLAS, and ISPS Code for security.

Safety and Environmental Measures

• Regular inspections and certifications for structural integrity and safety equipment.
• Spill prevention plans and containment measures mandatory.
• Trained crew and emergency response teams to handle fire, oil spills, or other hazards.
• Mandatory reporting of incidents to authorities.

Example

An FSU anchored off the Mumbai coast stores crude oil before it is transferred to tankers for export. It undergoes annual safety inspections by the Directorate General of Shipping and complies with MARPOL guidelines to minimize environmental impact.