ANP Approves Investigation Report on Fuel Distribution Fire

The Brazilian National Agency of Petroleum, Natural Gas, and Biofuels (ANP) has taken a significant step toward ensuring the safety and regulatory compliance of Brazil’s fuel distribution industry by approving the investigation report related to a major fire incident at Maxsul Distribuidora de Combustíveis Ltda. in Chapecó, Santa Catarina. The incident, which occurred on November 13, 2023, highlights the critical importance of adhering to Brazil’s regulatory standards.

Overview of the Incident

The fire broke out during a fuel transfer procedure aimed at adjusting the product level in the rear compartment of a tanker truck. The incident began when the fuel ignited as a result of excessive static electricity generated by the use of non-compliant materials and procedures during the transfer of flammable liquids. This led to a chain reaction—when the operator attempted to remove the burning transfer hose, the flames spread to the tanker truck and a temporary plastic transfer tank. The plastic tank, not being fire-resistant, collapsed, spilling fuel across the platform, pump area, and tank basin, leading to extensive damage.

The fire raged for approximately 68 hours, causing substantial damage to the facility, which was forced to halt operations for 23 days. Fortunately, no fatalities or injuries were reported, but the environmental impact was significant, affecting an area of about 20,000 square meters.

ANP’s Response and Investigation

The ANP promptly responded to the incident, initiating its investigation on the same day, November 13, 2023. The first on-site inspection was conducted on November 21-22, where investigators collected data, reviewed internal documents, and interviewed individuals involved. This thorough investigation revealed several critical safety lapses at the facility.

One of the key findings was the inadequacy of the site’s emergency preparedness. The facility’s Emergency Plan was found to be generic, outdated, and unsuitable for the specific risks associated with fuel distribution. Moreover, the facility lacked essential safety documentation, such as a specific Emergency Action Plan for high-risk activities, a Risk Analysis and Change Management Register, and records of training.

Due to these deficiencies, the ANP ordered the temporary closure of the facility, lasting 23 days, until all regulatory requirements were met. After the facility implemented the necessary safety improvements, it was authorized to resume operations on December 6, 2023. A follow-up inspection on December 14 confirmed that the facility was operating safely and effectively.

Key Findings and Recommendations

The ANP’s investigation report, approved on August 8, 2024, outlines not only the causes of the fire but also provides a set of recommendations aimed at preventing similar incidents in the future. These recommendations are crucial not just for Maxsul Distribuidora de Combustíveis Ltda., but for all regulated entities within the fuel distribution sector.

The report emphasizes the importance of adhering to proper safety protocols and the need for updated and specific emergency plans tailored to the risks inherent in fuel distribution operations. It also underscores the necessity of regular training and documentation to ensure that all personnel are prepared to handle emergencies effectively.

Regulatory and Legal Implications

Following the incident, Maxsul Distribuidora de Combustíveis Ltda. has been subject to administrative proceedings. If found in violation of safety regulations, the company could face legal penalties as prescribed by Brazilian law.

The publication of the investigation report on the ANP’s website will provide valuable insights and serve as a guide for other companies in the industry, reinforcing the importance of compliance with safety regulations and the potential consequences of non-compliance.

Conclusion

The Maxsul fire incident is a reminder of the critical importance of safety in the fuel distribution industry. The ANP’s rigorous investigation and the subsequent findings underscore the need for ongoing vigilance, proper training, and adherence to safety protocols to prevent such incidents in the future.