mega air separation risk management.pdf
TRANSCRIPT
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Risk Managementfor
Mega Air Separation Projects
David R EdmondsonVice President, Engineering
Air Products
November 2004
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Risk Management
Why Risk management is important
Air Products experience
ORYX Approach
Options for the future
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Risk Management
Why is Risk Management so Important? Oxygen is an integral part of the GTL process
Significant proportion of overall project costs
Oxygen is on the critical path for GTL projects
Need to manage any perceived technology risk
Important to manage the project financial risk
Maintains site safety performance
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Basic Air Separation Process
AirFilter
Compression Train
SteamTurbine
BoosterAir Compressor
(BAC)
Air Pre-treatment Cold Box Storage
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Air Products Rotterdam - 3250 TPD O2
Supplying Shell PER + Project Owned and operated by
AP since 1997
Execution Strategy
Side by Side HP/LP
columns
Site built cold box
Site assembledcompression system
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Air Products Trinidad - 3000 TPD O2
Supplying MethanexMethanol Project Owned and operated by AP
since 2003
Execution Strategy
Stacked HP/LP columns
Site built cold box
Site constructed double
ended steam turbinedriving compression
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Risk Management - Construction Strategy
Site built machinery & Cold Box Effective for single train plants
Issues for multiple trains
Increased site activities challenge
safety performance
Suitability/availability of local
contractors for extended period
Managing site through periods of
extreme weather
Significant logistics and material
handling
Plot area increased to allow for
construction access
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Risk Management
ORYX Construction StrategyPre-fabrication/packaging of specialist skills areas
Focus on Cold Box & compression train Built in Quality
Improved control over quality & cleanliness
Improves construction sequencing
Reduces schedule risk
Reduces site manning
Fewer specialist skills on site
Reduced plot requirements
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ORYX Cold Box Strategy
ORYX plant for 7000 TPD in two trainsbeing loaded in UK
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ORYX Cold Box Strategy
Cleaned assembled and tested in controlledenvironment
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ORYX Cold Box Strategy
Utilises construction principles used for yearsin many smaller Air Separation Units
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ORYX Machinery Train Solution
Complete
train run and
shop tested
Simpler
foundations Reduced site
construction
and start-up
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Does Size Matter?
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Does Size Matter?
Single vs. Multiple trains Impact of increased equipment size needs to be
fully understood:
Equipment sourcing Reliability & operability
Consider impact of steam balance on oxygenrequirements at different points of facil ity
operating map Optimum plant size and unit cost of oxygen
dependent on owner design and operatingphilosophy
Advantages to project risk profile by usingexisting demonstrated Air Separation Unitcomponents and proven construction strategy
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Risk Management
Further reducing unit cost of Oxygen Need to incorporate innovation in process cycle
and plant concepts
Need to accept increased compression train size
Need to accept change in equipment configuration
Need to consider optimisation of each key area of
the Air Separation Unit rather being focused on
discrete trains
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Summary Points
Managing project risk includes: Client/supplier investment
Employee/supplier safety
Project risk profile reduced by using demonstratedequipment and project concepts
Air Products have a broad experience of site built andpackaged approach
ORYX project demonstrates packaged approach:
Product competitiveness
Greater schedule certainty
Reduced safety risks in difficult construction locations
Could go further on packaging other plant areas
Further cost benefits can be realised by goodco-operation in the project development phase