Issue 3, June 2013

Development of the Carreer Ladder

Process Safety Management Workshop 4 and 5 June 2013

Operational Excellence - the way forward

The Victory - Prefeasibility study for the first Petrochemical Refinery in Vietnam

CDU wash water injection and Desalter performance

Residue Upgrading Technology Workshop 26 and 27 June 2013

Optimizing Cleaning Cycles of Heat Exchangers

Bhawana Suphavilai, President

The last months most of us have been heavily involved in the Operational Excellence program. In this third issue of Energy Express we want to look back at the progress made and on the way forward of OEMS.

We also want to tell you more about two upcoming workshops : the first one on Process Safety Manage-ment to be held on 4 and 5 June 2013, in the Centara Grand Hotel, Ladprao, Bangkok.

Presentations will be given by well known consultancy firms who are active in this area, including ABB, Dupont, KBC, Siemens, Phillip Townsend and PrimaTech.

On 26 and 27 June Residue Upgrading Technologies will be presented by the

leading technology licensors : Axens, CLG, FW, KBR, SGSI, Technip and UOP,in a work shop in the Holiday Inn, Pattaya. After these presentations, the PTT Group companies will brainstorm together to see if there is potential synergy in working together in this area.

Two exciting events, where in the PTT SPIRIT of learning and sharing with each other, the participat-ing PTT companies will give presentations on ongo-ing activities in these fields.

A number of other ongoing and finished activities and projects are highlighted in this issue – we hope this will be useful to you to apply to your business as well.

PTT Energy Solutions is formed by its shareholders to support the Refinery and Petrochemical Industry to enhance their operational performance targets, by providing the “Value Added” technical services, in a professional and cost effective way.

PTTES offers training, seminars, benchmarking, and project development & management support as well as technical consultancy.

The PTTES Services are concentrated around 5 technical platforms : • Quality, Safety, Health, and Environment • Asset Integrity and Reliability • Efficiency and Optimization • Equipment Engineering Service • Process Engineering Service

Our operations office is located atPTTGC6 Admin Office; 8, I-8 Road, Map Ta Phut Industrial Estate, Map Ta Phut, Muang District, Rayong 21150Tel. + 66 (0) 3897 8300

All articles and quotes in this document have been reproduced with the kind permission of our customers. Copyright is vestd in PTT Energy Solutions Company Limited, Thailand. All Rights reserved. Neither the whole nor any part of this document may be reproduced, stored in any retrieved system or transmitted in any form or by any means (electronic, mechanicals, reprographic, recording or otherwise) without the prior written consent of the copyright owner.

Partnership and Service Management

Area of Business and Services

PTTES is the technical consultant, focusing on the PTT Group of companies. PTTES acts as immediate “one-stop-services” for its customers, where beneficial in co-operation with other consul-tancy companies and service providers.

Partnership with several leading consulting companies such as KBC, UOP, Axens, KBR, ABB, Dupont, FW, Technip, WorleyPar-son, PrimaTech etc. including 5-year contract with Shell Global Solutions are in place to ensure the maximum value of the provi-sion of technical services to the PTT Group.

Pre-feasibility study of a Petrochemical Refinery Complexleading technology licensors : Axens, CLG, FW, KBR,

SGSI, Technip and UOP,in a work shop in the Holiday Inn, Pattaya. After these presentations, the PTT Group companies will brainstorm together to see if there is potential synergy in working together in this area.

Two exciting events, where in the PTT SPIRIT of learning and sharing with each other, the participat-ing PTT companies will give presentations on ongo-ing activities in these fields.

A number of other ongoing and finished activities and projects are highlighted in this issue – we hope this will be useful to you to apply to your business as well.

Optimizing Cleaning cycles of heat exchangers

PTT Public Company Limited (PTT PLC) asked PTT Energy Solutions Company Limited (PTTES) to do a Pre-feasibility study for a world class petrochemical refinery: a fully integrated complex to process 660,000 bpd of crude oil (30 MMTPA) and to maximize petrochemicals production. The selected location for the project is the new Nhon Hoi Economic Zone in Binh Dinh province.

The main elements of the Pre-feasibility study are : • To develop the study key premises : crude oil supply, product demand, crude oil and product pricing, product specifications, and key financial parameters • To optimize the Integrated Refinery, Aromatics and Petro chemical Complex by selecting state of the technology. • To develop Inside Battery Limit (ISBL) and Outside Battery Limit (OSBL) Capital cost estimates with an accuracy + 50% / - 30% • To do a sensitivity study for the economic evaluation

PTTES worked with UOP LLC on the LP modeling & Optimization and Capital cost estimate.

To get maximum economy of scale, all key process units have maximum available sizes. The refinery products (gasoline, jet and diesel) will meet EURO-V specifications; the Petrochemicals and Aromatics meet the standard chemical grade product specifica-tions.

The selected crude oils for the Pre-feasibility study are a mix of various crude qualities from various supply sources in order to ensure supply security.

The parameters used to determine the most attractive configura-tion for the Petrochemical Refinery are IRR and NPV, the finished products supply compared to Vietnam’s domestic demand, flexibility for future expansion, future competitiveness in ASEAN petroleum and petrochemical market, and economic impact of the various sensitivities studied in project economic risks, perfor-mance and on commercial assumption etc.

With the world scale unit sizing and the fully optimized integration between refinery and petrochemical complex an attractive return on investment for the proposed configuration is shown. Econom-ics of the project can be further improved in the next phase by further optimization on e.g. stream routing, and Residue upgrad-ing part of the refinery.

For more information, contact Hans Bodewes: hans.b@pttes.com or Jariya Oonmeechai: jariya.o@pttes.com

Heat exchangers form an essential part in most manufacturing plants. In general Heat exchanger performance is gradually deterioration over time due to fouling, which leads to reduction of heat transfer and consequently increase of production cost. Identifying the optimal cleaning cycle of heat exchangers is there-fore crucial to ensure that a plant is kept running at maximum profitability.

PTT Energy Solutions can help you to evaluate the optimum cleaning cycle of your Heat Exchangers. The main scope covers:

• To determe the Outlet temperature and Overall Heat Transfer Coefficient of each Heat Exchanger before and after cleaning • To identify which Heat Exchangers have be cleaned • To evaluate the impact on Energy consumption after cleaning • To Perform an Economic evaluation to evaluate optimum cleaning cycle

PTTES carried out a study to evaluate the optimal cleaning cycle for one of our clients. At this site, heat exchanger cleaning is done

every second year. To enable heat exchanger cleaning, the process unit has to shut down for 15 days. The PTTES study, showed that the cleaning cycle should be extended to 4 years : to the energy cost resulting from the poorer heat exchanger perfor-mance is lower than the opportunity loss from 15 days shutdown of the process unit every second year. The potential cost savings identified in this study is around 15 Mil. Bht/year.

Minimum cost

For more information, contact Piroon Smanot at piroon.s@pttes.com

Technical Training Schedule

RPA201 Aspen PIMS: Solving Refinery Planning ProblemIn the table an overview is given of the currently planned training courses organized by PTTES.

Operational ExcellencePTT has a bold ambition to achieve Fortune 100 status, and Operational Excellence (OpEx) is a key pillar of the PTT Way that supports this PTT STRONG aspiration. The Operational Excel-lence Management System (OEMS) is designed to elevate PTT Group’s operations to a world-class standard. OEMS is a comprehensive operating management system that integrates, standardizes, and improves existing management systems across PTT Group companies. It is structured around 12 elements and provides the framework to achieve safe, reliable, sustainable, and cost-effective operations.

The embedding of OEMS in to all PTT companies requires a great effort, resources and time which cannot be randomly applied.

Maturity Assessment (MA) is the approach that helps address the gaps and defines the OpEx roadmap for each PTT company.

Seven PTT pilot companies were chosen to be the spearhead to undertake such management system implementation and Matu-rity Assessment. They are IRPC, PTTGC, TOP, PTTEP, PPCL, GPSC and PTT GSP.

The last seven months most of our consultants have been heavily involved in the Maturity Assessment for the seven companies. PTTES with collaboration of KBC and Bain Company invents the OEMS Maturity Assessment Toolkit, Level 2(Business Unit Level) which consists of Scoring Book, Interview Guide, Toolkit Diction-ary, Training packages and various templates. The MA was deployed to the pilot companies in 4 consecutive waves with two parallel streams started from January until May 2013. Since there are 12 OEMS elements to be assessed altogether, the activity requires a large number of assessors. The team majorly consists of PTTES consultants as a core and supplemented by experience personnel from the pilot companies. The assessor team was rigorously coached by KBC and Bain for the early waves until they became full-fledge assessors in the last wave.

As the OpEx is a long journey which each PTT company takes several years to reach the moving top quartile aspirations, MA is periodically required to be exercised every two- three years. PTTES is now able to deliver Maturity Assessment for both Level 2 (Business Unit Level) and Level 3 (Asset Level).

For more information, contact Taweelarp Pornkul at taweelarp.p@pttes.com

Developing the Career LadderPTTGC awarded an international consultant company to develop the Technical Career Ladder for Process, Mechanical, Electrical and Instrument Engineers and asked PTTES to join this team. PTTES consultants brought practical industry insights, experience of developing graduate and professional engineers in energy and petrochemical business to the team by actively participate in all the scheduled meetings, contributed and commented on the content of the new technical career ladder system.

Also, PTTES consultants contributed to content, challenge, improve and ensure this international company’s approach and framework to be aligned to PTTGC HR and Engineering Progres-sion Schemes and industry best practice. Together with PTTGC team members, PTTES consultants ensure that the final products will be practical for the graduate engineers and line managers to implement and meet the objectives of providing evidence of work achievements and competency levels attained for the appropriate progression step.

For more information, contact Teerawat Vidayanakorn at teerawat.v@pttes.com

Course DatePHA for Team Leaders

Principles of PHA for Team Members

Awareness of Process Safety in Design

Awareness of Process Safety in Design

Process Design Fundamentals

Principles of Furnace Combustion Engineers

May 27-31

June 3

June 10-14

June 17-21

July 15-19

July 29-Aug 2

Aug 5-8

Dusit Thani, Pattaya

Centara Grand, Bangkok

IRPC Technological College, Rayong

IRPC Technological College, Rayong

IRPC Technological College, Rayong

Holiday Inn, Pattaya

Holiday Inn, Pattaya

These parameters were assessed for the higher CDU operating severity to evaluate the desalter performance. The study showed that in the new operating mode the residence time in the desalter is lower than design. It was shown that this can be compensated by maintaining a good electric field condition in the desalter, and it was concluded that the overall desalter performance will be sufficient.

Additional recommendations have been made to ensure good performance of the desalter, e.g. to closely monitor the desalter interface level and to increase chemical/additive injection dosing while maintaining the same wash water injection rate (3% vol of throughput). The operational procedures were also assessed and recommendations were made. For example, to do an effective mud wash on every shift during the higher CDU operating severity.

For more information, contact Parichat Tanthakit at parichart.t@pttes.com

CDU Wash Water StudyTo assess the benefits of CDU Overhead wash water injection, the sublimation and acid dew point temperatures of NH4Cl/NH4HS at the CDU Overhead have to be determined. A study was done that showed no evidence of salt formation, but indicated potential dew point corrosion at the CDU Overhead fin fans. The injection of wash water will suppress this dew point corrosion.

The wash water source, quality, quantity and the configuration of the wash water injection system were studied. Sour water from the bootleg of the Overhead accumulator is often used as wash water source, but it needs prior ammonia injection to ensure that the required pH is obtained. Stripped sour water can also be used as intermittent make-up in case the wash water quality cannot be controlled by ammonia injection. The required amount of wash water is determined by 2 criteria :

• the remaining liquid water after the injection point should be at least 50% of the total injected water • the wash water flow rate is 5-10% of the Overhead stream flow rate.

Pro II simulations were done to determine the required wash water quantity at various CDU throughputs and Overhead temperatures. The capacity of the downstream equipment and facilities were checked for the maximum wash water flow rate.

The use of CDU wash water injection increases the overall CDU Overhead flow rate and as a result the 4” water outlet nozzle of the Overhead accumulator drum has to be replaced by a 6” nozzle to avoid a too high water outlet velocity. It is also recom-mended to modify or replace the bootleg of the accumulator drum to provide sufficient residence time for proper settling of the water phase. The existing sour water pump has not enough capacity to deliver the required wash water injection rate. It has to be replacement with a higher capacity pump or a new parallel pump has to be installed.

At present there is no conclusive evidence of corrosion in the CDU Overhead system, so implementation of wash water injection is recommended as a future modification if the CDU would be operated at higher severity (more salt and higher crude intake).

For more information, contact Parichat Tanthakit at parichart.t@pttes.com

AspenTech

CDU Desalter PerformanceIn mid 2011 one of our clients (Thai Oil Company) saw an oppor-tunity to increase the intake of the Crude Distiller Unit (CDU) to enable the processing of opportunity crudes (with higher salt content and lower API).

The performance of the CDU desalter is one of the important aspects that needs to be reviewed for the proposed new opera-tion conditions : insufficient desalter performance could create serious corrosion problems at the CDU’s overhead system (CDU OVHD) and the downstream units.

The key operating parameters for desalter operation are: • residence time of crude oil • residence time of water • crude load per desalter area • desalter electric field condition

Date Venue InstructorMay 27-31

June 3

June 10-14

June 17-21

July 15-19

July 29-Aug 2

Aug 5-8

Dusit Thani, Pattaya

Centara Grand, Bangkok

IRPC Technological College, Rayong

IRPC Technological College, Rayong

IRPC Technological College, Rayong

Holiday Inn, Pattaya

Holiday Inn, Pattaya

PrimaTech

PrimaTech

ABB

ABB

UOP

Expert

For more information about Benchmarking, please contact Pongsanan Nopwiriyasi at pongsanan.n@pttes.com tel. 038-978-324

For more information about PTTES Training and workshop, please contact Sukanya Veerapattana at sukanya.v@pttes.com tel. 038-978-319 or Nujaree Plalad at nujaree.p@pttes.com tel. 038-978-339

Residue Upgrading WorkshopJune 26th-27th, 2013Holiday Inn Hotel, Pattaya, Chonburi, Thailand

PTTES is organizing the second technology

workshop focusing on “Residue Upgrading”

on 26 and 27 June 2013, in the Holiday Inn in

Pattaya. This workshop is a follow up of the

workshop “Synergy of Petrochemical and

Refining Integrated Operations” that we held

in October 2012

The objectives of the workshop are to share the

expected market developments (especially the

future of HS Fuel Oil), the resulting increasing

driving force for Residue Upgrading; and to hear

more about the recent developments in residue

upgrading technologies from the leading

licensors.On 27 June a brainstorming session will

take place for participants from PTT Group

companies only, see identify if there are

opportunities for joint developments

Who should attend?The program is designated for senior process engineers and managers in the area of Technology, Operations optimization, Business development, Supply Chain Management, Refinery Economics, Feedstock and Production Planning.

Workshop Objectives :

1. To share information on market developments that drive companies to higher residue upgrading 2. To share information on recent developments of residue upgrading technologies by the world leading licensors, both by presentations and booths3. Brainstorm together - what can we do together in residue upgrading projects – PTT Group companies staff only

Language : English

Speakers :

JUNE 4th-5th, 2013

In the PTT Group, there is great emphasis on Process Safety Management (PSM) to drive safety performance improvements in individual Group organizations in order to build stakeholders’ confidence that no accidents will happen. Process Safety Management covers management of asset integrity and reliability of equipment and includes designing, building, maintaining and operating the process to ensure reliability and integrity throughout the life cycle of the assets. In addition, mind-sets, organizational systems, behavior, human factors and work culture are crucial aspects and should also be addressed together. Learning from others raises awareness and performance even higher. Hence, we would like to establish the level of PSM in the PTT Group against interna-tional best practices. For this purpose, overseas partners are invited to share their experiences, methodologies and practices from which all participants can gain benefits from the networking and knowledge sharing. Moreover, the workshop approach of this event aims to encourage participants and TSA Recipients to learn best practices and to share their experience, identify gaps and map opportunities for improvement in their own organization to enhance PSM.

The Process Safety Management Workshop will be run as a series of workshops, starting from this year. The plan is to repeat it every 1-2 years in order to promote continuous improvement and sustainability in this area.

OBJECTIVES

• To promote understanding of Process Safety Management in PTT Group • To link Process Safety Management’s key elements in Operation Excellence Management System (OEMS) • To explore gaps and opportunities for improvement in Process Safety Manage ment, applying best in class methodologies. • To promote compliance and safety mind-set, behavior and practices to ensure safe, sustainable and profitable operations • To support country-wide collaboration in Process Safety Management among refineries and petrochemical staff in Thailand and seek continuous improvements through benchmarking and alignment with best industry practices. • To establish a “Community of Practitioners” in Process Safety in the PTT Group

Language : English

PTTES is an organization that provides career development opportunities for technical profes-sionals. We are looking for enthusiastic, self-motivated and energetic candidates for several positions. Interested persons can find more detailed information in our website www.pttes.com or are welcome to contact :

Technical Talent Manager

PTT Energy Solutions Company Limited 8, I-8 Road, Map Ta Phut Industrial Estate,Map Ta Phut, Muang District, Rayong 21150

Tel: +66(0) 3897 8332, +66(0) 3897 8312E-mail: info@pttes.com

Working with us

Recent EventsConference / Workshop

Technology Workshop 2012; Synergy of Petrochemical and Refining Integrated Operations

PTAI Aromatic Benchmarking and SOLOMON fuel and Lube study Benchmarking

Material and Equipment Standards and Code (MESC) Workshop

Date VenueOct 9-10,

2012

Dec 14, 2012

Mar 5, 2013

NPC S&ERayong

Holiday InnPattaya

Centara Grand at Central Ladprao

Benchmarking

Liquid Pipeline and Terminal Performance Analysis

Process Safety Benchmarking

Date Customer

Jan 15-16, 2013

Feb 11, 2012

PTTGC

PTTGC

Technical Training

Process Hazard for Team Leaders by PrimaTech

Awareness of Process Safety in Design by ABB (1st session)

EHY223 Aspen HYSYS Dynamics: Introduction to Dynamic Modeling

Date Venue

Jan 14-18, 2013

Jan 21-25, 2013

Jan 28 - Feb 1, 2013

Dusit Thani Pattaya

Kameo House Rayong

Amari Orchid Pattaya

Awareness of Process Safety in Design by ABB (2nd session)

Mar 20-22, 2013 Holiday Inn

Pattaya