(LNG) Plant Shutdown – Essay Furious


PROJECT CHARTER

Version 1.0

Sponsor: Charles Reynolds – Fictum LNG Production Director
Project Name: Fictum Liquified Natural Gas (LNG) Plant Shutdown
Prepared By: Robert Bedford – Project Manager Date: 30 July, 2021
Background

In 2017 Fictum LNG completed construction and commissioning on the Fictum Gas Project located onshore at Dongara, Western Australia. The Fictum Gas Project delivered a three LNG Process Train 15.6 million ton per annum (MTPA) liquified natural gas processing plant; inclusive of utilities, process treatment and international LNG and domestic gas export facilities. It is one of the world’s largest LNG projects to date and the largest single resource project in Australian history.

After operating for 4 years almost continuously, the Fictum Gas Project is scheduled for a long-term shutdown for required maintenance and process debottlenecking. Shutdowns provide opportunities for required maintenance and potentials for improved production however, they also represent a significant loss in revenue for Fictum LNG. The works described herein are part of a larger shutdown program and the works scheduled during this period shall be laboriously scrutinized by the shutdown planning team.

Problem / Opportunity

The Fictum Production Operations team have identified key issues to be addressed that affect revenue, expenditure and future LNG production. It is expected that through addressal of the following 3 problems there exists an opportunity to reduce annual insurance premium payments, reduce annual maintenance budgets and increase annual LNG production in comparison to the current yearly benchmarks.

Problem Statement 1

Future Project Piping Tie-ins: 6 process piping tie-ins in the main pipe rack for future process hook-ups have been identified as requiring modification. It has been the strategy of Fictum LNG to increase their processing capacity after completion of the initial build of three process trains. The current plant design allows for two additional process trains to be “plugged in”; advancements in process technologies require modification to allow for the expected increases in production capacity. Addressing during the current period eliminates the requirement to interrupt production to hook-up these plugin trains in the future.

Problem Statement 2

Flare System Debottlenecking: 6 control valves welded into module hook-ups to the main flare headers require demolishing and replacement. Due to incorrect valve selection at initial install, the lines containing these valves have been experiencing flow induced vibrations. Pipe supports have been damaged and the pipe racks have been exposed to undue stresses as a result of this anomaly. This has required the operations team to reduce flow and by association production to prevent the damaging vibration. It is expected that after correction this process system shall no longer vibrate uncontrollably and be able to be operated to achieve its designed capacity.

Problem Statement 3

Compressor Lube Oil Systems: 2 Refrigerant Compressors in LNG Train #1 require their lube oil systems to be modified to address bearing overheating that has been causing periodic unplanned equipment trip and process / production interruptions. It has been determined that the shell and tube lube oil coolers (2 per machine) bundles require changing out for another model. It has been determined that replacement of the lube oil cooler bundles will resolve the bearing high temperature trips. The Owner will consider future works on LNG Trains 2 and 3 if this solution is confirmed and is executed without incident and interruption beyond the schedule shutdown period.

Deliverables & Requirements

Project Management Deliverables

Project Management Plan:

Project scope baseline

Schedule baseline and schedule management plan

Cost baseline and cost management plan

Human resources management plan

Communications management plan

Stakeholder management plan

Risk register and management plan

Quality management plan

Procurement management plan

Project controls plan

Project progress reports

Project completion report Engineering Deliverables

Welding procedure specification (WPS)

Subcontractor scope of work packages for Procurement

Contractor Work method statements (WMS)

Field installation work packs (FIWPs)

Including Inspection Test Reports (ITRs) – Completions

As-built drawings HSSE Deliverables

Personnel Training Register

Plant and Equipment Certification Dossiers Quality Deliverables

Certified Procedure Qualification Record (PQR)

Welder Qualification Test Records (WQTR)

Inspection and Test Plans (ITP)

System Dossiers / Ready for Start-up (RFSU) Walkdowns – Completions

Ready for Start-up (RFSU) Certificates – Completions

Punch-lists – Completions

Construction Work Package / Technical Deliverables

Future Project Piping Tie-ins – 6 off Piping Tie-in Modification

Flare System Debottlenecking – 6 off Flow Control Valve Replacement

Compressor Lube Oil Systems – 2 off Process Compressor Lube Oil System Modification

Key Functional Requirements

Future Project Piping Tie-ins: Accommodate hook-up of future process train plugins; modular compatibility (piping flange) and achievement of flowrates per current engineered design.

Flare System Debottlenecking: Eliminate flow induced vibration; permitting the installed process system to operate at designed capacity.

Compressor Lube Oil Systems: Eliminate refrigerant compressor bearing overheating causing compressor trip and unplanned process / production suspension.

Acceptance Criteria

The acceptance criteria for each work package shall be refined and finalized as a collaborative effort between Owner and Contractor engineering prior to mobilization to site. Each work package shall have discipline specific Inspection test reports (ITRs) developed and assigned prior to work commencement.

The project shall be accepted as complete when all ITRs have been closed, Ready for Start-up (RFSU) certificates have been endorsed and all punch lists closed by the approved stakeholders as indicated within the Stakeholder and Communications Management Plans.

The following industry standards in accordance with existing Fictum project specifications shall provide guidance for development of work package and acceptance criteria to be referenced within the assigned ITRs:

Piping Fabrication Installation and Testing

Welding Procedure Specification (WPS) and Procedure Qualification Record (PQR): WPS: In accordance with ASME BPVC IX – 2021 according to ASME B31.3 – 2020 PQR: To be certified by a NATA accredited laboratory

Construction and Testing Execution: ASME 31.3 – 2020 – Process Piping

Electrical and Instrumentation Installation and Testing

Flow control valves to operate in accordance with the distributed control system (DCS)

Flow control valves to be certified in accordance with: API-598 10th Edition – Valve Inspection and Testing

ANSI-FCI 70-2 – 2021 Edition – Control Valve Seat Leakage Compressor Lube Oil Systems

Design of work packages and execution of works on lube oil flushing systems shall be in accordance with:

API-614 5th Edition – Lubrication, Shaft-sealing and Oil-control Systems and Auxiliaries

API-686 2nd Edition – Recommended Practice for Machinery Installation and Installation Design

Exclusions

The Contractor is required to supply sufficient HSSE in-field advisors to support their operations. There is no requirement to deliver a formal HSS&E management plan. It is the expectation of the Contractor to participate in and follow Company’s HSSE management programs.

The Company shall provide all permanent equipment and materials required for the preparation and execution of the works described except consumables. The Contractor is required to supply general and project approved welding consumables for their own use.

The Company shall provide the following project support services. It remains the responsibility of the performing Contractor to plan and coordinate within sufficient timeframes to permit on-time delivery of these services. Should a conflict in the field arise due to perceived priorities, the issue shall be elevated to Company shutdown coordinators to resolve.

Equipment mobilization, demobilization and on-site movement services

Scaffolding services

Diesel refuelling services (all temporary equipment is to be diesel driven)

Constraints

Minimal pre-work can be executed; main works require shutdown and making piping systems safe.

Contractor procurement teams have other projects to address; buyer assistance may be limited.

Company provided services may be constrained by higher priority activities.

Assumptions

The Company shall be responsible for providing positively isolated piping systems that have been proven to contain zero energy. Company shall provide the opportunity to the Contractor’s representative to witness the piping systems have been made safe; ready for work. Once accepted to contain zero energy, the Contractor shall accept custody of the piping system to commence works and execution time commences.

BENEFITS

KPIs

Eliminate / reduce process compressor downtime:

Increased annual production targets – Reduce / Eliminate process shutdowns.

Reduction of maintenance budget – maintenance required to address compressor bearing damage cause from overheating (component changeout).

Zero LNG production time lost attributed to refrigerant compressor trip (cause: bearings overheating); measured over 1 year

2.5% Reduction of annual maintenance budget

Elimination of flow induced vibration:

Achievement of plant name-plate process capacity (15.6 MTPA).

Reduction of insurance premiums on asset – plant integrity assurance increased.

Reduction of maintenance budget – maintenance

required to address damage sustained from vibration eliminated / reduced.

2.5% Increase in plant output capacity measured against the year prior.

2.5% Reduction on annual asset insurance premiums

2.5% Reduction of annual maintenance budget

Eliminate future requirement for plant shutdown:

Uninterrupted LNG production – opportunity to eliminate requirement to suspend LNG production to install future project process tie-ins.

Zero LNG production time lost due to process shutdown attributed to process piping tie-ins for future expansion (measured on current design).

Strategic Alignment

The Fictum LNG project shutdown is in alignment with Fictum LNG Company’s energy development strategy by contributing to the following goals:

Continuous Improvement of liquified natural gas production and delivery capacities by debottlenecking current assets to achieve and exceed as designed production capacities.

Strengthen market position in liquefied natural gas production and delivery capacity by increasing LNG production capacity by expansion.

Increase credibility globally concerning future projects by strategically developing current energy sources through improved processes and technologies.

Approximate Cost

Project Management Planning: $40,000.00

Project Support (Level of Effort): $425,000.00

Engineering: $35,000.00

Pre-Shutdown – Preparation & Mobilization: $170,000.00 Initial Shutdown – System Purging & Isolation: $100,000.00 Main Shutdown – Construction Works: $345,000.00 Pre-commissioning – Valves & Lube Oil Systems: $400,000.00 Post Shut-down – Project Close-out: $75,000.00

Total Project Cost: $1,590,000.00

Approximate Timeframe / Milestones

Project Management Planning: August 28, 2021

Engineering: September 8, 2021

Pre-Shutdown – Preparation & Mobilization: September 10, 2021 Initial Shutdown – System Purging & Isolation: September 19, 2021 Main Shutdown – Construction Works: October 11, 2021 Pre-commissioning – Valves & Lube Oil Systems: October 26, 2021 Post Shut-down – Project Close-out: November 4, 2021

Key Risks

Procedure qualification record certification and welder qualifications

Long lead procurements – Inline weld testing tools (IWTT)

Schedule overrun (Loss of production time)

APPROVAL Yes / No

Authority: Fictum Company Production Director Date: 30/07/2021

Project Sponsor

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