PTQ Q4 2022 Issue

Future refinery complexes built using an integrated approach

Minimise risks of project design changes at later stages using process digital twins during the design phase

Amit Sarna and Sachin Srivastava KBC

T he refining industry is going through unprecedented times. Industry players are confronted by numerous challenges, including volatile crude prices, diminish - ing demand for transportation fuel, and stringent regula - tions to meet decarbonisation targets to produce cleaner fuels. At the same time, the growing economies in Asia will continue to propel the demand for petrochemicals. The future comprises a world of fuel refineries, refinery-inte - grated petrochemical complexes, and crude oil to chemi - cals. Through this energy transition, the latter two will undoubtedly be more resilient toward future demand and supply-side dynamics. With the increasing complexity and size of investment for new capital projects, owners are seeking holistic technical and operational guidance to make better investment deci - sions and minimise costly rework with EPC (engineering, procurement, and construction). As shown in Figure 1 , a conventional project execution approach requires informa - tion sharing amongst different advisors through various project phases. During each transition, there is often pro - ductivity and information loss, resulting in project scope and schedule overrun. Initial study phases of capital projects are critical and, despite constituting a small portion of the total project costs, they can potentially reduce overall project costs by up to 20% and improve integrated complex margins by

USD 2 to 3 per barrel of crude. The owner’s project team often has limited subject matter expertise and skills to cover these aspects. The concept of an owner’s technical advisor (OTA) for capital projects is increasingly becoming common to address such gaps with respect to technical, operational, and organisational experience. With a large multi-disciplined project, the owner may enlist the assistance of third parties to review the project aim and objectives as well as basic engineering. A PMC may be engaged to help guide and manage the efforts of other contractors. In addition, licensors used for each specific technology are intertwined in the project. The interaction of the owner, PMC, and licensors require an understanding of the multiple aspects of the project. In this conventional approach, licensors work in silos where their focus gets restricted to the unit inside the battery limit. Meanwhile, the PMC focuses on other interfaces and drives the schedule/cost optimisation. In this way, the focus on the overall complex-wide optimisation and inte - gration is compromised. The OTA’s role is to provide the owner with an independent review and analysis to keep the project’s goals and objectives as the focal point. The OTA bridges the goals and objectives between different owner groups and appointed agencies (licensors, EPC, PMC) into a more efficient and streamlined process, as depicted in Figure 2 .

Detailed feasibility

Commissioning & start-up

Operation

EPC

FEED

Earlier project delivery

Cost of design change Conventional project cycle Project cycle with integrated approach

100%

Avoidance of costly resetting of scope, productivity loss, understanding loss in transitions

Project life cycle

Figure 1 Project life cycle using conventional vs an integrated approach

PTQ Q4 2022