3rd generation modularization by flour

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3RD GEN MODULAR EXECUTION. SM DESIGN AND .... Steel / Pipe / E&I Work. COST ACCOUNT. Hours ...
Modular Designs Which Maximize Movement of Hours Offsite
• “Modularization Drives Layout” not “Layout Drives
Modularization”
• “Standardized” not “Customized” Designs
• Maximum Collaboration Between Owner, Engineer,
Procurement, Construction, Project Management and
Fabricato

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3rd generation modularization by flour

  1. 1. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 1 3RD GENERATION MODULARIZATION AND ITS APPLICATION TO LNG DISTRIBUTION Barcelona LNG summit – October 2013
  2. 2. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Presentation Outline FLUOR INTRODUCTION THE CURRENT STATUS OF CONSTRUCTION IN LNG PROJECTS 3RD GEN MODULAR EXECUTIONSM DESIGN AND EXECUTION INTEGRATED EPFC SOLUTION STANDARDIZATION AND REPLICATION QUESTIONS 2
  3. 3. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Presentation Outline FLUOR INTRODUCTION THE CURRENT STATUS OF CONSTRUCTION IN LNG PROJECTS 3RD GEN MODULAR EXECUTIONSM DESIGN AND EXECUTION INTEGRATED EPFC SOLUTION STANDARDIZATION AND REPLICATION QUESTIONS 3
  4. 4. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 4COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Fluor Overview • Fluor is the largest publicly traded engineering, procurement, construction, maintenance, and project management companies in North America • Over 1,000 projects annually, serving more than 600 clients in 66 different countries • Workforce of over 42,000 men and women executing projects globally • Celebrated 100 years in 2012 Fluor Spain Office • Revenue: $27.6 billion • New awards: $27.1 billion • Backlog: $38.2 billion
  5. 5. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Worldwide Office Locations under development Years of Experience in Region North America South America Europe Africa Middle East Asia Australia 101 76 63 53 66 62 63 Tarragona 5
  6. 6. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Presentation Outline FLUOR INTRODUCTION THE CURRENT STATUS OF CONSTRUCTION IN LNG PROJECTS 3RD GEN MODULAR EXECUTIONSM DESIGN AND EXECUTION INTEGRATED EPFC SOLUTION STANDARDIZATION AND REPLICATION QUESTIONS 6
  7. 7. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Investment Risks in LNG Projects “The liquefied natural gas industry says that up to $150 billion in projects could be lost to Australia unless the industrial relations system is overhauled and construction costs are slashed within 18 months” “Shane Wright Economics Editor, The West Australian Updated May 27, 2013, 2:50” “For the coming decade, Alberta could experience a labour shortage of approximately 114,000 workers.” Ref: Employment Alberta 2010; Demand and supply outlook “Canada is facing a shortage of construction workers over the next decade—the industry will need to recruit in the order of 320,000 workers from 2011 to 2019” Ref: HEAVY INDUSTRIAL CONSTRUCTION AND MAINTENANCE, WORKFORCE CHALLENGES IN ALBERTA, MAY, 2011 7
  8. 8. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Asia Pacific Latam Europe 8 Australia - Cost of Labour Canada - Need to replace US consumer - Insfrastructure Costs - Remote / Labour Costs Mozambique - Labour Gulf of Mexico - Shale Gas Bonanza providing feedstock to: - LNG Projects - Gas To Liquids - Petrochemicals - Power - Issues with finding Qualified Construction Labour Recent Gas Discoveries
  9. 9. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 9COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Case for the Construction Industry to Act Fact: Historical step-change productivity gains by manufacturing & ship- building Source: database of EU KLEMS Growth and Productivity Accounts: November 2009 Release, updated March 2011 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 1977 1982 1987 1992 1997 2002 2007 GrossValueAdd(GVA)perhourworked Construction, Manufacturing & Total Industries Labor Productivity (1977-2007) volume indices, 1977 = 100 Manufacturing Total Industry Construction
  10. 10. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Why Has Manufacturing Improved? 10 Modular Designs Standard Designs Replicated Designs
  11. 11. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Presentation Outline FLUOR INTRODUCTION THE CURRENT STATUS OF CONSTRUCTION IN LNG PROJECTS 3RD GEN MODULAR EXECUTIONSM DESIGN AND EXECUTION INTEGRATED EPFC SOLUTION STANDARDIZATION AND REPLICATION QUESTIONS 11
  12. 12. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Need to Provide More Innovative Solutions 12 To address client drivers of reduced capital cost for Oil, Gas and LNG developments To improve predictability of project execution, cost and schedule results for Oil, Gas and LNG developments Current project development and execution approaches are “traditional” with still a significant level of site construction required. This adds cost to projects and puts more risk on predictability of results
  13. 13. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor The Current Status of Modular Design and Execution • 1st Generation Modular Execution – Piperacks or PARs 13
  14. 14. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor The Current Status of Modular Design and Execution • 2nd Generation Modular Construction Execution – 1st Generation plus: – Equipment or PAUs (Preassembled Units) • Equipment on module • Modules around equipment – Pre-Dressed Vessels – 40% of Equivalent Stick Built Hours Relocated to Shop for Steel / Pipe / E&I Work COST ACCOUNT Hours Moved Offsite STRUCTURAL STEEL 65% EQUIPMENT 21% PIPING 53% ELECTRICAL 25% INSTRUMENTATION 15% INSULATION 50% 14
  15. 15. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Where Do We Need to Go? • Modular Designs Which Maximize Movement of Hours Offsite • “Modularization Drives Layout” not “Layout Drives Modularization” • “Standardized” not “Customized” Designs • Maximum Collaboration Between Owner, Engineer, Procurement, Construction, Project Management and Fabricator • Fluor developed Modularization Improvement Initiative 15
  16. 16. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 16COMPANY CONFIDENTIAL | © Copyright 2013. Fluor • Fluor has developed a 3rd Gen Modular ExecutionSM Methodology – Past modular projects evaluated – Offshore design methods evaluated – Facility interconnections evaluated – Power and control distribution evaluated – All available technologies evaluated • Patent Pending to protect intellectual property Module Design Evolution - 3rd Generation
  17. 17. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Work Process Introduction Process Block Concept • The work process starts with process engineering, who conceptually divides the project into various process blocks (systems within a distinct geographical boundary). • The process blocks will vary by plant type. We have developed standard blocks for typical in situ projects, for example: oil treating, water treatment, steam generation, etc 17
  18. 18. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Work Process Introduction Process Block Concept 18
  19. 19. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Typical 3rd Gen Modular Execution SM Process Facility Using Process Blocks 19
  20. 20. ©2010 Fluor Corporation. All rights reserved. 3rd Generation MCCs - part of the Process Blocks 2nd Generation MCCs in Substations Connected with U/G Power Feeders One feeder cable per MCC Smaller Main Substation 3rd Generation Execution Power Distribution Power cables for each load run back to Substations along Piperacks 2nd Generation: 20% Electrical Equipment and Wiring on Modules 3rd Generation: All Electrical Equipment and Wiring on Modules Terminated (Excluding UG HV Distribution) 20
  21. 21. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Material Handling Strategy CA20110438001 21 Copyright © 2011 Fluor Corporation. All Rights Reserved. 21
  22. 22. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 22COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Typical 2nd Generation Modularized Plot Plan Upstream Heavy Oil (In Situ) Facility Approximate Plot Area = 200,000 Square Meters
  23. 23. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 23COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Typical 3rd Gen Modular ExecutionSM Plot Plan-Upstream Heavy Oil (Insitu) Facility Approximate Plot Area = 84,000 Square Meters
  24. 24. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Taking the Modularization to the Next Level. 3rd Gen Modular ExecutionSM moves 60 to 80% of the labour offsite 24
  25. 25. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Impact of 3rd Generation Execution Methods • Cost Competitive Solution Providing a Competitive Advantage – Lowers Over TIC of Project by Optimizing Plot and Reducing Quantities (up to 20% TIC Reduction) – Lowers Over TIC of Project by Moving Work Offsite to a More Productive and Cost Competitive Location – Lowers Over TIC of Project by Reducing Field Indirect Costs • Provides Execution Methods which Provide for Cost and Schedule Certainty – Places Emphasis on Early E&I Design Mitigating E&I Rollout at Site – Forces Engineering to Work as a Team for More Cost effective Design – Can Provide Schedule Reduction opportunity Particularly for Revamps • Can Provide Environmental Advantage by Reducing Facility Footprint • Reduces Safety Risks by Reducing Site Labour – Value Added Design Method for Brownfields/Revamp Work • Can be Repeated and is Portable 25
  26. 26. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Modular Execution Risk Management • Key Risks with a highly modular execution – Modularization strategy and plan developed too late. – Modules incomplete at shipment. – Late engineering deliverables or late revisions. – Steel and piping deliveries too late. – Instrument, electrical and EHT materials late. – Modules delivered late and/or in wrong sequence. – Shop workload exceeds capacity. • Mitigation Strategies In Place to overcome these: – Application of Fluor Global experience in implementation of modular execution projects has been critical to development of such strategies 26
  27. 27. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 27COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Integrated EPFC Solution Required 27
  28. 28. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 28COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 3RD GENERATION MODULARIZATION ALLOWS STANDARDIZATION • Lay Out Organized following Process Units • Modules are “Plug and Play” and Associated to Process Units • A Standard LNG facility can be created for a Range of LNG FEED conditions adding or deleting “Process Units” and therefore modules • An Envelope of Civil and Seismic Conditions needs to be assumed if the design will go into several locations. • 3rd Generation allows customization to Specific Site conditions adding or removing Standard Modules Standard Designs (Standardization)
  29. 29. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 29COMPANY CONFIDENTIAL | © Copyright 2013. Fluor ADVANTAGES • Lowers cost of equipment and bulks • Reduces Procurement cycle time • Reduces overall EPFC schedule • Provides Consistent Results • Reduces Operator Training Time and Costs • Reduces Maintenance Costs Standard Designs (Standardization)
  30. 30. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 30COMPANY CONFIDENTIAL | © Copyright 2013. Fluor RISKS • Culture to Customize and Optimize • Process FEED Change Beyond Standard Range • Technology Improvements Standard Designs (Standardization)
  31. 31. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 3rd Gen Modular ExecutionSM Current Projects • Shell Quest Project – CO2 Capture Project - Currently in Construction • Shell Muskeg River Debottlenecking Project - Implementing 3rd Gen Modular ExecutionSM Where Practical – End of FEED transitioning into Execution • Nexen’s Kinosis K1B SAGD – In FEL 2 • Suncor MacKay River 2 SAGD – in FEED • Suncor Fort Hills U&O – End of FEED • Devon Pike SAGD – in EDS • Conoco Phillips 3rd Gen Modular ExecutionSM Study for Future In Situ Projects (Templating) Including Surmont 3 – Study complete • Multiple Confidential SAGD Clients – FEL 2 • NWR Hydroprocessing, C&V and LC finer silo’s – Finalizing FEED • Williams PDH – in FEED • LNG Projects: – Liquefaction – Small Scale Regasification – FEL 2 31
  32. 32. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor What is the Impact? 32 It Will Look Different! Be Prepared for Change! Be Prepared to Collaborate! Executing Using the Same (Traditional) Methods Will Produce the Same Results!
  33. 33. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Questions and Answers 33
  34. 34. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 34COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Contact Information – Jorge Villeta • Fluor S.A. • Jorge.Villeta@Fluor.com • +34915366407 – Enrique Alonso • Fluor S.A. • Enrique.Alonso.Sanchez @Fluor.com • +34915365968 34
  35. 35. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 35COMPANY CONFIDENTIAL | © Copyright 2013. Fluor Acknowledgements Fluor´s team presenting would like to thank to Fred Haney, Subject Matter Specialist of Modularization, promoter and inventor of the 3rd Generation Modularization within Fluor for the presentation materials provide to make This presentation feasible 35
  36. 36. COMPANY CONFIDENTIAL | © Copyright 2013. Fluor 36 This presentation has been prepared by and remains the sole property of Fluor S.A., a wholly owned subsidiary of Fluor Corporation. Client agrees, by its acceptance or use of this document, to return it upon Fluor’s request, and not to reproduce, copy, lend, or otherwise disclose or dispose of the contents, directly or indirectly, and not to use them for any purpose other than that for which it was specifically furnished.

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