foster wheeler fcc project example package

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© Foster Wheeler. All rights reserved. © Foster Wheeler. All rights reserved. Combining FCC Technology Upgrade with  Asset Optimisation – Key Steps to Profitability Mike Whitling – Manager Asset Operations and Consultancy John Payne Chief Static Equipment Engineer

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Page 1: Foster Wheeler FCC Project Example Package

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Combining FCC Technology Upgrade with Asset Optimisation – Key Steps to Profitability

Mike Whitling – Manager Asset Operations and ConsultancyJohn Payne – Chief Static Equipment Engineer

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Technology Upgrades / Asset Optimisation

1

• Refinery margins continue to be extremely tight – investor close?

• European assets are particularly vunerable (age andconfigurations)

• FCC turnaround and revamp is a regular and majoractivity for most refineries

– From multi-million dollar to multi-billion dollar investments

• Integrating FCC upgrade with holistic asset optimisation(both process and O&M best practices) provides a veryreal opportunity to achieve profitability

• John and myself will present a combination of theoryand case study based examples

Key Steps to Profitability

The way to go . . .

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Expanding Horizons – Delivering Long Term Value to Client Investments

2

TechnicalExpertise

ProjectDelivery

Expertise

O&MBest

Practice

WorldLeading

Technology

Foster Wheeler seeks to workwith clients and partners todeliver long term value toclient investments

Foster Wheeler is focused onmaximising value by combining ourtechnical, O&M and project deliveryexpertise with world leading technology

Foster Wheeler’s Philosophy for Adding Value

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Foster Wheeler Support Jigsaw

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Foster Wheeler’s primary objective is always to make the Client’sdecision making as simple as possible

• Detailed study is essential to optimise the project and confirm

feasibility on a robust basis ahead of any significant expenditure• A shortlist of technically feasible options should be generated with

economic evaluation of the most promising

• Investment planning should focus on all issues affecting project

cost and development – not just the configuration and technology

• Investment Planning can be optimised across multiple assets andmultiple units, and phased in accordance with financial constraints

Foster Wheeler is a World Leader in Concept Studies

– from multi-million to multi-billion dollar investments

Investment Planning / Concept Studies

…. Bringing real, practical EPC experience to conceptual investment planning

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Wear and tear means maintenance driven shutdowns will happen

• FCCs are flexible units that readily lend themselves to revamp totake advantage of new developments from any source

• Maximise benefit of maintenance turnarounds by looking for newbusiness opportunities

• Apply project management to the scope definition and development

• Ensure you get the right technology at the right cost

• Make the upgrade pay

Process Technology Improvement

5

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Fringe benefits of operations ‘buy-in’ and proactive

commitment to performance improvement: – Improved housekeeping – Competency enhancement – Improved management skills – Above all . . . . pride

The man – Machine Interface

Operational and Reliability Impact

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• High-level assessment – Performance Management System strengths and weaknesses – Strategy to deliver business management improvement:

– Address robustness and value of refinery performance managementsystems, are they fit for today’s purposes, not a legacy from the ‘lasttime’ a major upgrade / revamp took place

• Functional specialist operations groups – Selectively restructure operator workforce – Accountable for specific performance areas

– Create groups within each shift for 24-hour focus

• Performance assurance programme – Separate from day-to-day monitoring tasks – Concentrate on improving operational performance

The Man – Machine Interface

Strategic Plan for Improving Operations

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Maintenance review – Philosophies and strategies – preventive, condition-based, prioritisation – Procedures – repair or replace? – Turnaround planning

• Maintenance records – Quality of records – Analyse for repeat failures – Persistent failures – root cause analysis

• Equipment

– Criticality – rank based on reliability impact? – Include reliability in risk ranking matrices

– Reliability – impact on efficiency – for example, pump drive efficiencies when

switching pumps on routine basis etc

The Man – Machine Interface

Maintenance and Reliability Improvement

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Foster Wheeler contracted to carry out a Revamp, Turnaround andInspection project in the Far East.

• The revamp involved major process and technology enhancementsto the RFCC unit

• A key aim of the project was to improve reliability of the RFCC andassociated assets

Case Study 1: RFCC Reliability Assessment

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• FW conducted a review of Client’s RFCC complex operations,maintenance and inspection records. Foster Wheeler assessedreliability and operational problems relating to existing unit designand reviewed any constraints that limit unit run lengths.

• The scope of the study evaluated the overall reliability of the RFCCby addressing each of the aspects of the listed below: – Evaluation of design and actual operations – Comparison with similar plants – Inspection of critical equipment – Conformance to design

Case Study 1: RFCC Reliability Assessment

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Foster Wheeler established a base line of performance that formedthe basis for revamp and operational improvement studies

• Identified common failures and recommended improvementoptions for Owner’s consideration.

• Approved items were added to the scope and FEED included basic

design data for any changes.

Case Study 1: RFCC Reliability Assessment

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Then, a year later, Foster Wheeler returned to site to assessprogress relating to RFCC reliability enhancement since the initialvisit. We reviewed:

– Project Management and Control

– Mechanical enhancements within revamp scope

– Mechanical mods outside revamp scope (T&I actions, studies etc)

– Operational issues & reliability awareness

– T/A Planning

– FW & SPRC interfacing

Case Study 1: RFCC Reliability Assessment

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Owner acknowledged & effectively embraced previous mal-operationincidents, start-up problems & incorrect practices

• Good proactive approaching a reliability driven regime

• Reward – Best in practice operational availability levels of 98%

• Staff are aware of current best practices, they measure & improveperformance (using corporate principles and tools)

• Active involvement in inter-company liaison groups with similar RFCCtechnologies

• Providing specialist manpower at other operator’s RFCC T/As,strengthens experience levels

RFCC Reliability Assessment Summary Observations

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• The need to scrutinise maintenance regimes on equipment whereextended runlengths have been problematical

• Maximise operator training with licensors and vendors

• Operations should consider embracing ‘operations functional groups’ – give responsibility to run, own and implement reliability improvementinitiatives

• Field operators need to be more diligent at ensuring that fieldinstrumentation that tracks reliability monitoring are maintained and

accurate• Owner held a 3 day Reliability workshop – commendable activity

RFCC Reliability Assessment Summary Observations

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© Foster Wheeler. All rights reserved.

John Payne

Chief Static Equipment Engineer

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Safety• Operational reliability• Minimum turnaround time and risk to schedule• Lowest possible cost

• Take advantages of process improvements

• SO MUST… – Maximise pre-turnaround and post-turnaround activities – Maximise work done offsite – Fit first time – Quality of Installation – Latest proven technology

Key Factors for all Operators

17

Planning Execution – E, P & C Logistics

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Coke build up in reactor• High temperature material degrading• Erosion• Thermal shock

• Shell refractory failure, gas tracking, hot spots, spooling• Operational upset• Cyclone and internals life: 15 to 25 years• Expansion bellows life: 10 to 15 years• Shell refractory life: 5 to 25 years

FCC Turnarounds

What are the Key Drivers?

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Lost revenue is $1 million to $2 million per day when not operating

• Typical turnaround time is 35 days or fewer

• Run times have grown from 3 to 5/6 years continuous so need toplan earlier and predict operational reliability a lot further ahead

FCC Turnarounds

19

Significant Revenue and Margin Implications

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

The Project Decision Process for Refinery Upgrades

Project Delivery Excellence: Key Steps in the Study Phase

20

Feasible Options

MaintenanceRequirement

Process /Technology

Improvements

Planning TARDurationCost Estimate

Engineering &Construction

Conclusion &Execution Strategy

LicensorSelection

Risk / “What-if” Analysis

Client Needs

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Study and EPC Timeline

Project Delivery Excellence: Timeline to Turnaround

21

3 Years

Study Licensor EquipmentProcurement

6 Months 3-6 Months 18 MonthsMin

3 Months

EquipmentDelivery TARPre-TAR

3 Months

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© Foster Wheeler. All rights reserved.

Case Studies – Delivering Highly ComplexFCC Upgrades

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• 12 pairs of cyclones• Cyclones interlinked and

share secondary hangers• Full trial assembly of

cyclonesat fabricator’s works

• Precision survey of hangers• Data used to position

hanger nozzles in head

• Alignment blocks oncross-overs

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Use of electronic 3Dsolid edge model

• Demonstratesclearances, access andfuture maintenance

• Input into FEA analysis

• Input into EngineeringMethod Statements

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Cyclone assembly intransport CAN leavingfabricator’s work

• Module weight 265te+15m diameter

• Height restriction oncanal of 12m

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Floating crane at Antwerp liftshead onto cyclone assembly

• Cyclone hangers then areinstalled

• Special lifting arrangement toequalise loads into the head

• All shell deflections have beenanalysed to avoid any damageto refractory

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Head module onroute from dock toRefinery

• Motorway closure• Probably the

largest head &cyclone assemblyto be transportedto site as onepiece

• Movement date of24 March 2013set 2 years inadvance

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Tree pruningcarried out oneyear in advance

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Head assemblybeing transportthrough refinery

• New site entrancecreated

• Head assemblynow jacked up toclear piping eitherside of road

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Case Study 1: Stanlow Head & Cyclones

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Skid Bridge 35m Long over pipe band allows complete headframe assembly to be moved from off plot location to crane

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Case Study 1: Stanlow Head & Cyclones

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Final lift of new head at 440Te

• Weight ControlCritical throughtoutproject

• Crane within 5% ofcapacity

• All componentsweighed asmanufactured

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Case Study 1: Stanlow Head & Cyclones

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Case Study 2: Regen Head & Cyclones

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Methods Studied and Crane Problems

Regenerator Cyclones End of Life, Replace Cyclones complete with Head is normalExtremely Tight Plot Space and Route RestrictionsCome up with split head framesMain Crane Remained the problem space and undergrounds

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Case Study 2: Regen Head & Cyclones

37

Selected Option

Sequence• Install Beams to support cyclones

• Secure cyclones at top• Cut and remove head• Remove cyclones as pairs• Replace in reverse order

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Case Study 3: Reactor Internal Riser & Cyclones ?

38

Option at start of study

• Problem Internal Riser Buckled• Normal Head Replacement as

shown would also suggest replacecyclones as towards end of life.

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Case Study 3: Reactor Internal Riser & Cyclones ?

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Option Suggested to Client

Option suggested to Client• Cut Hole in top Head and replace Riser• Only• Delay replacing cyclones till next TA, this

gives time to upgrade technology forimproved Product Slate

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

• Early start

• It’s OK to think big

• Overall process and mechanical solution

• Consider whole refinery• At the end of the study, the client has an

independent report that identifies the way forward

• Most overall cost-effective solution

• No surprises• Fit First Time

Conclusions & Execution Strategy

40

Best Practice in Delivering Complex Upgrade Projects

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© Foster Wheeler. All rights reserved.© Foster Wheeler. All rights reserved.

Whatever the challenge, we can help

Foster Wheeler Concept to Completion

Consistent high quality delivered anywhere in the World

Furtherinformation:www.fwc.com

[email protected]

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www.fwc.com