Front End Engineering Design (FEED) Challenges in EPC Projects: Design, LLI Strategy & Fast Track

Transcription

1 progetti Front End Engineering Design (FEED) Challenges in EPC Projects: Design, LLI Strategy & Fast Track By Armando Bianco, Engineering Manager, Eniprogetti Global Conference on EPC Contract & Project Management 9th-10th November 2017 Lisbon, Portugal

2 Index Eni Design Basis, Key Deliverables & Battery Limits: how to approach a Front End Engineering Design Balance between engineering freezing and early procurement: Long Lead Items strategy Fast Track: Basic, FEED & Detail Design phases in overlap aiming at Project goals Conclusions 2

3 Eni 3

4 Design Basis, Key Deliverables & Battery Limits: how to approach a Front End Engineering Design 4

5 Oil and Gas Project Development Phases Pre-feasibily 1-3 MM (typical ref.) Feasibility 2-4 MM (typical ref.) Basic - FEED 3-9 MM (typical ref.) G1 G2 G3 Detail Design & Procurement 9-18 MM (typical ref.) Construction Commissioning 12+ MM (typical ref.) Execution: detailed development and physical realizatio of the scope of the project s ork Definition: finalization of the development concept Selection: choice of optimal development configuration Appraisal / Evaluation: assess e t of the opportu it s eco o ic alue Project expenditure Capital Risk Difficulty to implement changes Personnel involved Stakeholders e pectatio s Time 5

6 Project Development Phases Key Activities -> Key Deliverables (es. for process and piping and layout engineering) Pre-feasibily 1-3 MM (typical ref.) Feasibility 2-4 MM (typical ref.) Basic - FEED 3-9 MM (typical ref.) Detail Design & Procurement 9-18 MM (typical ref.) Construction Commissioning 12+ MM (typical ref.) Support to Construction and commissioning Feasibility Red-marked and as-built Finalization of all processes, utilities and transportation systems. Design of all engineering systems Constructability reviews finalization 3D model Detail Engineering Design Procurement and Construction P&ID (with vendor information) Equipment DS (for all items) Details MTO (2 nd and 3 rd ) Isometrics Construction drawings Stress Reports Finalization of Heat & Material balance, P&ID & Equipment and packages DS Plot Plan, Equipment layouts, Underground layouts Finalization of Technical Specifications (Stress analysis Criteria) Single lines for steel structures Preli i ar MTO s Pipi g ( st MTO) 6 Identification and analysis of the main process and utilities for each generated concept alternative Preparation of process specifications, design criteria, for all processes, utilities and transportation systems. Preliminary engineering, safety and constructability. Technology selection report Preliminary Heat & Material balance Block Flow Diagram Preliminary Site Plan Process Flow Diagrams Battery Limits Table Preliminary P&I Ds Equipment Data Sheets Design Criteria Preliminary Plot Plan

7 How Design Basis, Key Delivery and B.L. can affect a Project What if Desig Bases are not finalized Example: the pressure of the Sea Water Make-up (rely upon information) was significantly different from the reality. Technical resolution: lower the pumps with an additional basin (groundwater level very high). Impact: additional costs and delay in schedule Key Deliverables are not ready as needed Example: the supply of a critical reactor was assigned to a vendor in the Far East and a shipping to North Africa was fixed in advance. Due to the delay in the 3D model, the nozzle orientation was not ready as per original plan agreed with the vendor resulting in late finalization of the vendor engineering and eventually of the supply. Recovery plan: an acceleration plan was agreed with the vendor to meet shipping window. Impact: additional costs 7 Battery Li its are not aligned (process-wise) Example: two different mechanical contractors were assigned to install the cooling water circuits in the relevant area and a battery limits was established. During the commissioning phase after the battery limits were connected it was noticed that one contractor inverted the connection from a process point of view. Technical resolution: the connections were modified during commissioning and with acceleration in procurement for the unforeseen additional material during commissioning Impact: delay during commissioning phase Note: Lesson Learnt not related with ENI projects

8 Why Basic-FEED is the most important part of a Project? Pre-feas. Feasibility 1-3 MM 3-6 MM (typical ref.) Basic - FEED 3-9 MM (typical ref.) Detail Design & Procurement 9-18 MM (typical ref.) Construction MM (typical ref.) Construction Commissioning 12+ MM (typical ref.) $ value BOQ & Construction strategy Material Selection & Take-off Peak Construction Cost Project Cost Curvet Peak Material Cost Availability of Information time 8 During Basic FEED project costs can be properly evaluated by finalization of material selectio a d MTOs, owi g to that this phase is the ost i porta t for the go/ o go final assessment

9 Design approach Key points The Basic - FEED engineering shall be tailor fit to allow the correct definition of the i vest e t cost a d to support the go / o go decisio gate 3 (key deliverables fit for purpose to the activities and not vice-versa); In Basic FEED phase, the key deliverables allow to fix the material selection and estimate material take-offs which are the input for the procurement and construction strategy based on the project drivers; 9

10 Balance between engineering freezing and early procurement: Long Lead Items strategy 10

11 Long Lead Items definitions Those components of a system or piece of equipment for which the times to design and fabricate are the longest and for which an early commitment of funds may be desirable or necessary in order to meet the earliest possible date of system completion. 11

12 Critical Path The critical path is the sequence of activities that represents the longest path through a project, which determines the shortest possible project duration [PMBOK Critical Path Method] Appling Critical Path method for all the systems of a project, even material with a rather short delivery can result to be critical, owing to that we can split LLI in two categories: Typical LLI such as: High pressure equipment High temperature equipment Special Material equipment 12 Not Typical LLI such as: Tie-ins: integration with existing Facilities Bulk material for early commissioning system

13 Tie-ins: integration with existing Facilities REFERENCE GREEN-FIELD PROJECT SCHEDULE Pre-feas. 1-3 MM (typ.ref.) Feasibility 3-6 MM (typ.ref.) FEED 3-9 MM (typical ref.) Detail Design & Procurement 9-18 MM (typical ref.) PROCUREMENT PROCUREMENT FOR TRADITIONAL FOR LLI LLI Construction MM (typical ref.) Commissioning 3-12 MM (typical ref.) EARLY ENGINEERING EARLY CONSTRUCTION EARLY PROCUREMENT TIE-INS PRODUCTION PLAN of EXISTING FACILITIES EARLY COMMISSIONING UNIT 10 UNIT 20 UNIT 30 Plant to be disinvested Shutdown Shutdown Production Dismantelling Dismantling Production Shutdown OVERALL SCHEDULE INTEGRATED WITH PRODUCTION PLAN Feasibility Study TIE-INS FEED TIE-INS INSTAL. Shutdown Detail Design & Procurement TIE-INS INSTAL. Dismantling Construction Commissioning 13 Tie-ins shall be planed in an early stage of the project, with a dedicated engineering, construction and commissioning team. The project schedule incorporates the production plan in terms of turn-around or critical milestones.

14 Bulk Material for Early Commissioning System Engineering design for bulk material is aimed to produce MTOs with increased levels of definition Procurement generally follows the MTO by engineering based on master agreements or project agreements Construction strategy is divided into: 1 st phase by area 2 nd phase by system 14 During the engineering phase it is important to verify that the delivery of bulk material fits the Mechanical Completion dates (additional specific MTOs can be envisaged).

15 Long Lead Items strategy Key points The critical path developed for all the project systems allows us to recognize critical delivery items which do not have the longest delivery such as tie-ins or bulk material for early commissioning system, which shall be focused since the start of the project with a dedicated integrated team (engineering, construction and commissioning); For a revamping project, the integration of the production plan in the project baseline allows to execute tie-ins during turn-around, minimizing the number of shut-downs and avoiding unnecessary loss of production; 15

16 Fast Track: Basic, FEED & Detail Design phases in overlap aiming at Project goals If you're not confused, you're not paying attention. Tom Peters 16

17 Project objectives and Fast-Track Projects Pre-feas. 1-3 MM (typ.ref.) Feasibility 3-6 MM (typ.ref.) Basic - FEED 3-9 MM (typical ref.) Detail Design & Procurement 9-18 MM (typical ref.) Construction MM (typical ref.) Commissioning 3-12 MM (typical ref.) Opt.1) Compress the activity lengths Pre-F. Feasibil. FEED Detail Design & Procurement Opt.2) Fast-Track by parallelization of phases Feasibility Study FEED Detail Design & Procurement 17

18 Possible outcomes when implementing a Fast-Track in a project Relying upon preliminary information Overdesign material Design based on assumptions Increased interface management Not linear approach in decision making Higher Cost More Engineering Man-hours More Reworks More difficult engagement of personnel Increased possibility of inconsistencies Higher Risk Which it the greatest objective? 18

19 How to mitigate risks in fast-track projects Feasibility Study FEED Re-cycling Design inputs/outputs Detail Design & Procurement ENGINEERING Preliminary information evaluated from Basic (used for detail design) are always re-checked when more information are available ENGINEERING Final alignment mitigates risk of further phases for critical aspects D MATERIAL Material check/re-rated is re-consolidated both in Basic and Detail Design to avoid reworks during construction and commissioning MATERIAL When procurement cycle is long, procurement can be start with preliminary data, updating more consolidated information during the vendor alignment before PO Final alignment TEAM If the approach is aligned since the beginning with a common goal, all the team is aimed to support unavoidable project changes and reworks activities 19

20 Case Study Feasibility Study FEED Detail Design & Procurement D Project Organization Engineering Approach: Re-cycling Design 1. Process and Layout for critical circuit 2. 3D Model Review 30% and 60% 3. Material Selection 4. Vendor design 5. Design Philosophy Operating manual 20

21 Case Study Organization Chart OWNER FEASIBILI TY PRE- FEAS. LICENSOR FEASIBIL. CNT DETAILED ENG. BASIC - FEED FAST-TRACK BASIC FEED VENDOR VENDOR DETAIL ENG. VENDOR CONSTRUCTION SUB. CONSTRUCTION SUB. SUB. CONSTRUCTION SUB. Interface Management

22 #1: Process and Layout for critical circuit 2) PROCESS SCENARIOS (DESIGN CASES AND TRANSIENTS) 1) PRELIMINARY SIZE CALCULATION & PLOT PLAN PUMP FV s Valves Flow PSVs Valves Flow DISCHARGE File by FVA FVB FVC PSVA PSVB PSVC A B C IN OUT IN OUT IN OUT IN OUT IN OUT IN OUT Case EST9 4 SA EST9 4 SA EST9 4 SA EST9 4 SA EST9 4 SA EST9 4 SA EST9 4 SA x x x x x x x x x x x x x x x CEER 4 CEER CEER 4 CEER CEER 4 CEER CEER 4 CEER CEER 4 CEER CEER 4 CEER CEER 4 CEER CEER 4 CEER CEER 4 CEER In Process: Pump Nozzle Alignment for installation case, Pumps ABC at ambient CEER 4 CEER temperature, piping not anchored to the pumps. CEER 4 CEER In Process: Pump Nozzle Alignment for maintenaince case, Pump A, B or C as spare. CEER 4 CEER In Process: Tracing Failure Scenario analysis 3) STRESS CRITERIA WITH PRELIMINARY CRITICAL VERIFICATION AND TYPICAL DETAILS 4) 3D LAYOUT 6) UPDATING PROCESS LINE CALCULATION & PLOT PLAN 5) STRESS CALCULATION BASIC-FEED DETAIL ENGINEERING 22

23 #2: 3D Model Review 30% AND 60% DETAIL ENGINEERING BASIC-FEED BASIC-FEED DETAIL ENGINEERING 23

24 #3: Material Selection (Piping) Fluid list Piping Classes Process Fluid List Material Requirements Vendor Follow-up Material requisition & Purchase Order BASIC-FEED DETAIL ENGINEERING 24

25 #4: Vendor design Process DataSheet Material Requisition Mechanical and Material Check Vendor Follow-up BASIC-FEED DETAIL ENGINEERING 25

26 #5: Design Philosophy Operating manual Updated Control Philosophy Updating Process Design Design Scenarios Operating Scenarios Process Philosophy Operating Manual BASIC-FEED DETAIL ENGINEERING 26

27 Fast Track Key points The Fast Track with parallelization of phases which traditionally are developed sequentially is a possible strategy to meet Project Objectives when the schedule is challenging; To mitigate the risk associated to fast track (more interfaces, reworks, designing by conservative assumptions rather that consolidated data etc.) project team needs to be integrated with an interface management plan and dedicated engineering methods such as re-cycling and final alignment need to be set-up in the engineering execution plan. 27

28 Conclusions - Key Factors for Basic-FEED Projects Tailor fit Design by Project Objectives Advanced monitor of costs with correct Basic-FEED data System-wise approach since the beginning of the project For revamping, integration of project schedule with production plan Interface management, re-cycling and final alignment for fast-track project 28