George Bush Intercontinental Upgrades Fueling Operations

Once the COVID-19 pandemic eased, travelers started surging back in record numbers to George Bush Intercontinental Airport (IAH) in Houston.

In 2023, the Texas airfield handled more than 46 million passengers—a 12.7% increase from 2022. And traffic this year is expected to easily top that.

To meet the corresponding demand for fuel, IAH executives knew major improvements were needed for the airport’s fueling system. “We had to add two more fuel storage tanks to the 10 we already had in our fuel station,” says Jim Szczesniak, director of Aviation for the Houston Airport System. “In addition, our aging infrastructure, such as the old pumping system, had to be modernized.”

The airport’s master plan, created several years ago, charted the need for more capacity. To make this happen, the airport worked closely with IAH Fuel Company (a consortium of 31 airlines based at the airport) and Burns & McDonnell, the consortium’s chief design, engineering and construction consultant for the project.

Preliminary planning started back in 2015, when IAH Fuel hired Burns & McDonnell. The firm’s first step was to have several members of its technical team visit the facility, and it quickly became apparent the whole system was due for improvements and upgrades.

“The original fuel farm was built in the late 1960s. Everything needed upgrades, including pumps, storage tanks and electrical systems,” states Mark Lundquist, an associate project manager with Burns & McDonnell. “The pumps were getting old and needed constant maintenance to stay in service. The electronics and communications systems also were outdated. For example, fiber optic cable is a modern standard that was not used five decades ago.”

Plans were finalized in 2017, after two years of detailed design work, securing permits and producing financial estimates.

Several major improvements were recommended, approved and executed. Phase One focused on the distribution system. Crews installed 10 new hydrant pumps, two separate pump pads with canopies to protect equipment, and a custom-designed power distribution center. In addition, aging control systems in the fuel station administration building were replaced with updated technology that leverages variable frequency drives (VFDs). The hydrant pumps and VFDs are designed to reduce the facility’s energy use by up to 40%. The upgraded control system and the new VFDs also will reduce the wear and tear on the pumps and appurtenances, allowing for increased reliability and reduced maintenance frequency.

Phase Two expanded fuel storage capacity and improved facilities.

Two new above-ground jet fuel tanks, with a total volume of 112,000 barrels (4.7 million gallons), boost the airport’s ability to meet demand from increasing air traffic. The airport leased an additional nine acres to the consortium for these new tanks, including extra room for two additional tanks if needed in the future.

Facility improvements included renovating 2,400 square feet of space in the fueling administration building and 6,000 square feet in two separate maintenance buildings. Crews replaced the HVAC unit and plumbing, as well as old industrial flooring. Fresh finishes were applied to walls and ceiling surfaces. In addition, IT systems were modernized and a much-needed conference room with AV equipment was created. Workers also built a new dedicated employee training room next to the main fuel station office.

“The implementation of these renovations is essential to having a productive operation,”
declares IAH Fuel Company Chair Janet Peters. “I think we are in good shape to ensure reliable fuel supply at IAH for at least the next 10 years. The new pump system will increase our efficiency in getting fuel to the gates, while the two new 56,000-barrel tanks provide much needed inventory so that supply meets future demand. Retrofitting the fuel administration office with the latest technology also will make the whole operation run more smoothly.”

Financing

The final cost estimate for Phase One and Two improvements came to $65 million. The responsibility for approving and financing the renovations fell to the fuel consortium. “We engaged several major lenders that often support airport projects,” Peters explains. “We believe we obtained a very good rate that extends for the life of our lease, which is 40 years.”

Each member’s monthly bill includes its share of the debt service, which is based on its annual fuel consumption. United is by far the largest airline at IAH, with 63% of all flights. Therefore, its monthly charge is the largest of all 31 consortium members.

“We really have not had any pushback from our members concerning the additional charges to their monthly bill,” reports Peters. “They were on board with making these renovations right from the early stages of planning.”

In addition to serving as chair of IAH Fuel, Peters is United’s fuel supply director.

Unexpected Challenges

Construction started in early 2020, and the project team hit its first challenge quickly—the COVID pandemic. “That definitely delayed us for a few weeks, but the entire team worked together to avoid significant delays,” Lundquist recalls. “We were really proud to provide work for many people during a time when work was scarce.”

Another obstacle occurred the following winter, when a big ice storm hit the Houston area. Power was lost for several days, and virtually everything in the region was closed, including the airport.

“After that rough start, we worked hard to get back on schedule, and for the last three years everything went pretty much according to plan,” Lundquist comments. “At one point or another, we probably had 200 employees of Burns & McDonnell working on different parts of the project. And that does not include construction subcontractors.”

Unlike many other teams working on airport projects at the time, Burns & McDonnell did not encounter building material shortages. ”We have a dedicated procurement team that was responsible for acquiring materials needed every step of the way,” says Lundquist. “They did a great job.”

Day-to-Day Operations

In February 2024, the consortium hired Menzies Aviation to operate and maintain IAH’s newly renovated fuel station.

The fuel is supplied by three pipelines from refineries based near the Gulf of Mexico. Incoming fuel is received by one of the storage tanks, where it is tested for particulates, water and other foreign substances. After sitting in the receiving tank for a day or two, it is sent to one of the other tanks, and eventually distributed via underground pipes to the terminals and gates.

“Our day starts at midnight, at which time we do a daily inventory of the current fuel capacity in each tank,” explains Harold Loy, Menzies’ general manager at IAH. “Once an airline requests that fuel be sent to a specific gate, we can send it very quickly via our new hydrant system.

“We have one of the newest hydrant pump systems in the United States,“ Loy adds. “It has improved our overall efficiency considerably.”

A network of about 34 miles of pipes under IAH’s airfield distributes up to 1.8 million gallons every day.

Menzies staff and airline personnel are enjoying the new administration building and training center added during the project. “Our training is very thorough,” Loy asserts. “We first do a thorough background check on all prospective employees. Training is done both in classrooms as well as through computer programs. Then, we train them on the airfield with extensive, supervised on-the-job training. Our employees have to go all over the airport and learn how to navigate from one place to another. On average, it takes approximately six weeks before we turn them loose.”

Pleasing Stakeholders

Looking to the future, Szczesniak and other airport officials are confident that the recently updated fuel facility will meet the needs of airlines and passengers for years. But fueling isn’t their only focus. “Houston is growing at the rate of about 140,000 more people every year, and at least some of these people will use our airport, along with regular business and leisure passengers,” says Szczesniak. “To accommodate this growth, we are finishing a major expansion of our international terminal, including construction of six more gates designed for wide-body aircraft. In addition, United is building a new terminal for domestic passengers, with 40 new gates.”

More projects are expected in the next few years, and IAH has ample space to expand. “We are blessed to have 11,000 acres encompassing the airfield,” Szczesniak concludes. “We have plenty of room for future projects.”