FEA Based Level 3 Assessment of Deformed Tanks with Fluid Induced Loads
Mega air separation risk management
1. Risk Management
for
Mega Air Separation Projects
David R Edmondson
Vice President, Engineering
Air Products
November 2004
2. 2
Risk Management
Why Risk management is important
Air Products experience
ORYX Approach
Options for the future
3. 3
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
4. 4
Air Products
Cornerstones to Risk Management
World leading safety performance
– 0.607 recordable; 0.062 lost time
Proven track record of competitive large plants
– First to design, build & operate > 3000 MT/day plant
– ORYX project is currently largest single order for
oxygen production.
– Ongoing investment in technology
Continual learning from operating experience
– 35 years operating experience of Air Separation
plants with steam turbine drivers, including a
doubled ended steam turbine drive.
5. 5
Basic Air Separation Process
Air
Filter
Compression Train
Steam
Turbine
Booster
Air Compressor
(BAC)
Air Pre-treatment Cold Box Storage
6. 1
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 assembled
compression system
7. 2
Air Products Trinidad - 3000 TPD O2
Supplying Methanex Methanol Project
Owned and operated by AP
since 2003
Execution Strategy
– Stacked HP/LP columns
– Site built cold box
– Site constructed double
ended steam turbine
driving compression
8. 8
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
9. 9
Risk Management
ORYX Construction Strategy
Pre-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
10. 1
ORYX Cold Box Strategy
ORYX plant for 7000 TPD in two trains
being loaded in UK
11. 1
ORYX Cold Box Strategy
Cleaned assembled and tested in controlled
environment
12. 1
ORYX Cold Box Strategy
Utilises construction principles used for years
in many smaller Air Separation Units
16. 16
Does Size Matter?
Single vs. Multiple trains
Single train sizing
– Analysed costs for and bid 3500, 5000 &
7000 TPD
Compression, air pre-treatment & cold boxes
– Each have different constraints as plant size
increases
Cost benefits
– Equipment scaling benefits are minimal
when using similar equipment configurations
– Some overall benefits due to fixed elements
of scope
17. 17
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 oxygen
requirements at different points of facility
operating map
Optimum plant size and unit cost of oxygen
dependent on owner design and operating
philosophy
Advantages to project risk profile by using
existing demonstrated Air Separation Unit
components and proven construction strategy
18. 18
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
19. 19
Summary Points
Managing project risk includes:
– Client/supplier investment
– Employee/supplier safety
Project risk profile reduced by using demonstrated
equipment and project concepts
Air Products have a broad experience of site built and
packaged 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 good
co-operation in the project development phase
