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Chemical Engineers as Catalysts in Maximizing Nigeria’s Gas Value Chain

Otis Shelton, 2015 AIChE Past President

4th International Petroleum Downstream Conference

on Gas, Petroleum Refining, Petrochemicals, and FertilizersPort Harcourt, Nigeria

August, 2015

• Who is AIChE?�How we are partnering with NSChE?

• Chemical engineers as catalysts�What makes us good catalysts?�How we can maximize value in Nigeria’s

gas industry?

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Agenda

• Headquartered in New York City, with offices in Houston, TX; Mumbai, India; Frankfurt, Germany; and Singapore

• Over 50,000 members from more than 100 countries, worldwide

• Representing academic and industrial membership from leading universities and companies, globally

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Who are We?

To provide value as:

• The Global Leader of the chemical engineering profession

• The Lifetime Center for professional & personal growth,

and security of chemical engineers

• The Foremost Catalyst in applying chemical engineering

expertise in meeting societal needs.

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Vision

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AIChE + NSChE = Success Memorandum of Understanding (MOU) signed with Nigerian Society of Chemical Engineers (NSChE) on November 16, 2014 to support NSChE’s goals of:

- Collaborating to enhance and foster the practice of chemical engineering for national development,

- Enhancing usefulness of the profession to the public

- Achieving better training and updating of chemical engineers

- Building relationships with academia, research, industry, and other professional bodies for accelerating industrialization of the country.

Partnering

A Brief History 1908

Founded

Established technical communities:� Society of Biological Engineering (SBE) to address healthcare

� Institute for Sustainability (IfS) to advance sustainability & sustainable development

� Center for Energy Initiatives (CEI) to solve energy problems

� International Society of Water Solutions (ISWS) to address critical water-related issues

Fo

1st profession to accredit schools ensure consistency & quality

Chartered 1st Technical Division - Nuclear

2003-20121922 1954

Formed 1st Industrial Technology Alliance in aftermath of Bhopal accident – Center for Chemical Process Safety (CCPS)

Formed Environmental Division with focus on improving air & water quality

1970 1985

Formed International Committee

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Front row, left to right: President – Dr. Cheryl TeichPast President – Mr. Otis Shelton

Executive Director – Ms. June Wispelwey2013 President - Dr. Phil Westmoreland

Leadership

Board of Directors Treasurer – Mr. Dennis Griffith

Secretary – Dr. Christine Seymour

President Elect – Dr. Greg Stephanopoulos

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Organization

AIChE Board

Chemical Technology

Operating Council (CTOC); 14

Divisions, 8 Forums

Career & Education Operating Council

(CEOC)

Societal Impact Operating Council

(SIOC)

6 Industry Technology

Alliances & 6 Technical Entities

Executive Director & Staff

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CEOC

Focus on membership, international membership, local sections, student chapters, career services, and education

(college accreditation and continuing education)

The AIChE Academy:• A full array of education and training resources to chemical

engineers and the companies they work for. • Includes e-learning courses, webinars, conference

presentations and more • Searchable by topic, delivery method, skill level—even

location.

Nigerian student chapter:• Obafemi Awolowo University

• Who is AIChE?�how we are partnering with NSChE?

• Chemical engineers as catalysts�What makes us good catalysts?�How we maximize value in Nigeria’s gas

industry?

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Agenda

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“ a substance that increases the rate of a chemical reaction without itself undergoing

any permanent chemical change.”

We are Catalysts

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How we use our technical knowledge of ChemE principles in the oil, gas and chemical industries:

- We develop new, improved processes

- We improve productivity, efficiency, safety, and on-

stream time of processes

- We hold paramount the safety, health and welfare of the public and protect the environment

ChemEs as Catalysts

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Academic Preparation

• Mathematics – Calculus I, II & III plus Differential Equations

• General Chem I & II• Organic Chem I & II• Physical Chem I• Physics I & II• Basic Biology

Compared with other engineering disciplines:

• ChemE requires more math

• ChemEs are the broadest in science

• ChemEs complete a capstone plant design

• Material & Energy Balances• Mass & Energy Transport Phenomena • Thermodynamics • Separations• Reactor Engineering • Chemical Plant Design • Process Control• ChemE Laboratories

• Who is AIChE?�how we are partnering with NSChE?

• Chemical engineers as catalysts�What makes us a good catalysts?�How we can maximize value in Nigeria’s

gas industry?

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Agenda

• Improving Process Safety Risk Management - Increased profitability

-Avoidance of significant loss (equipment and people)• Improving the Environment - Minimize spills – less environmental pollution of soil

and water- Minimize waste – cost savings

• Converting Flared Natural Gas to useful product • Addressing Global Challenges Impacts – Nigeria

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Where We Add Value

1970 - 2012

Chevron Richmond, California ,

2012

Phillips Petroleum, 2012

Bhopal, 1985

BP Texas City, 2005

Major Accidents

• Bhopal - “Well-designed and implemented process safety management systems must be used globally,

• BP Texas City Refining vapor cloud explosion – “occupational safety performance is different from process safety performance.”

• Phillips Petroleum – , training, contractor knowledge, lack of effective lockout/tag-out program

• Chevron – incomplete action item recommendation from hazard reviews

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Key Lessons Learned

Layers of Protection – Accidents occur when one or more layers of protection is ineffective.

Most cited U.S. Federal Standard for Petroleum Refinery National Emphasis Program (NEP) Inspections in 2012 18

Risk Management

• Chemical Engineers add value by:

– Designing processes consistent with recognized and generally good engineering design practices. Considerations include pressure relief valves, pressure vessels , piping and instrumentation, safety systems (interlocks, detection or suppression systems), refining columns, heat exchangers, reactors, catalysis, pumping systems, and ventilation systems

– Determining the safe operating limits for all process equipment involved in the process, such as distillation, extraction, reaction, drying, and pumping systems

– Developing environmental control systems to minimize air emissions, chemicals releases, and promote waste management

– Using the principles of inherently safer technologies to minimize risks • Poor design practices result in over-pressurization of vessels, poor

quality of product, increased maintenance for repairs, unplanned environmental releases and emissions, and more safety issues

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Safer Process Design

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Mechanical Integrity

• Chemical Engineers add value by: – Installing a mechanical integrity system to ensure

• programs exists to monitor equipment integrity • maintenance employees are skilled in work performed and

knowledgeable of workplace hazards• periodic testing & inspection is performed for key process

equipment in accordance with manufacturer’s recommendations & documentation

• Effective preventative maintenance of equipment performed and maintenance equipment deficiencies corrected in timely manner

• Maintenance outages result in loss of production and higher operating costs

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Management of Change

• Chemical Engineers add value by: – establishing process to evaluate and manage all

changes* to the process, chemicals, technology, equipment, and procedures by reviewing • technical basis for proposed change • impact on safety & health • changes to operating procedures • authorizations for proposed changes • training of affected personnel on changes

• Changes occur in production operations daily….

* not replacement in kind

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Process Hazard Analysis

• Chemical Engineers add value by: – Conducting thorough, systematic examinations of

potential changes in process variables such as pressure, temperature, composition, concentration, etc. to identify potential risks, and consequences of deviation. Such a process includes: • review team evaluation of each potential deviations in

process/equipment operation• identification of potential causes and resulting consequences • assignment of risk for each change• recommendations, if necessary, to mitigate hazards

• One of the top 3 findings in US refinery inspections under Process Design

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Emergency Planning & Response

• Chemical Engineers add value by: – Reviewing all plant operations and developing emergency

response procedures that address foreseeable emergency scenarios such as : vapor cloud releases, fires, explosions, chemical spills, oil spills, and natural disasters. Procedures ensure: • Drills are periodically conducted to assess readiness • Emergency personnel are trained in their duties • Emergency procedures for responding to emergencies are

clearly communicated • Due to different types of hazards, effective

emergency response is critical as business moves from oil and natural gas production to chemicals manufacturing

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Operating Procedures

• Chemical Engineers add value by: – Ensure that clear operating procedures exist and address:

• initial startup, startup after shutdown

• normal operations

• temporary operations

• operating parameters and limits

• consequences of deviation

• emergency operations, shutdowns

• initial and refresher training

• Incomplete operating procedures result in unsafe process incidents, environmental releases, poor quality

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• Chemical Engineers add value by: – Implementing effective control measures , both

procedural and technology, to prevent spills and waste management /minimization practices that• reduce the volume and toxicity of pollutants allowed to enter

the air, waterways, and soil• reduce potential health impacts – public • allow greater reuse of industrial waste streams

• Consider Responsible Care Management System(RCMS) – Chemical Industry Initiative to demonstrate “responsible care “ in chemical processing operations

• In Deepwater Horizon spill illustrates that major spills can be costly

Improving the Environment

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• Chemical Engineers add value by: • Minimize the learning curve and maximize value

Estimates Nigeria flares - 17 billion m3/yr• Commitment by senior government officials and chief

executives from major oil companies to put an end to gas flaring by 2030

• Using technology where chemical engineers have demonstrated competence – conversion of Natural Gas. Alternatives include: - compressed natural gas (CNG)

- liquefied natural gas(LNG) - Use of gas to liquid technologies (GTL), syn gas, Fischer-

Tropsch process- alkanes, naptha, diesel; Haber process - ammonia - -air separation units – Joule Thompson effect- operated by chemical engineers

Natural Gas Flaring

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• Chemical Engineers add value by: – Water use – growing more than twice the rate of population

increase during the past century . By 2025, 1.8 billion people will live in regions with serious water shortages.

– Food production - Global population expected to increase from 7.2 billion today to 9.6 billion in 2050. To avoid food shortages, need to produce 50% more food than exists today.

– Water – Energy – Food Nexus• Agriculture accounts for 70% of total water withdrawal• Food production accounts for about 30% of total global energy consumption

• AIChE Technical Entities actively collaborate to address these challenges. These issues impact Nigeria. Let’s work together.

Solving Global Challenges

• There are many ways that chemical engineers can add value to Nigeria’s gas value chain.

• AIChE is ready and willing to support Nigerian chemical engineers through its relationship with its partner, NSChE– To enhance education– To continue lifelong learning– To help network with experts

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Summary

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On Behalf of AIChE we thank you

for your time and attention!

http://www.aiche.org

Thank You!

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Back-up Slides (not in

presentation)

• Expertise within our divisions and forums• Networking and leadership opportunities• Education and training• Addressing societal needs

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How you can benefit

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Chemical Engineers are Lifelong Learners

Continuing Education

• Current Industry Process, Training, and Topical Reporting

• Technical Research and Professional Support

• Chemical Engineering Practice• Professional and Personal

Development• Energy• Environment & Sustainability• Process Safety

• Career Development•AIChE Leadership Webinar series•Chemicals & Materials•Process Safety Technical Areas•Biological Engineering•Fundamentals•Career Planning•Outreach•New Research Areas

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• Chemical Engineers add value by: – Ensuring latest process technology and safe controls in

place for handling, storage, and use of ammonia in production of fertilizers

– Demonstrated competence in operating process to manufacture ammonia

• It has been reported that Nigeria needs additional fertilizer to improve food production

• Last year, AIChE organized its 59th conference on Safety in Ammonia Plants & Related Facilities

Fertilizer Manufacturing

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• Chemical Engineers add value by: – Leading efforts to develop emerging technologies such as:

- Advanced or SMART manufacturing - Process intensification - Addressing/preventing climate change impacts

– Embracing/expanding use of new technologies such as nanotechnology, 3-D printing, regenerative engineering, and synthetic biology

• As a global leader (2030), Nigeria needs to be positioned to use these emerging technologies to maintain global competitiveness. Let’s work together.

Emerging Technologies

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Providing technical expertise plusnetworking and leadership opportunities

Divisions most closely related to Gas and oil • Fuels & Petrochemicals Division (F&P) • Separations Division (SEP)

Forums most closely related to Gas and Oil • Upstream Engineering & Flow Assurance ( UE&FA)

Divisions & Forums under CTOC

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• Minority Affairs Committee (MAC),

• Women’s Initiatives Committee (WIC)

• Global Outreach (including Engineers Without Borders, K-12 Outreach, STEM Education Outreach, and Speakers' Corner)

SIOC

Leading efforts to define how chemical engineers can most effectively address societal needs, including

outreach, public policy, and diversity of the profession

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Top Offshore Oil Spills

www.aiche.org

The SAChE program was developed by chemical and safety experts to help students gain proficiency in process safety. You will acquire skills and knowledge that will help you to advance both academically and in your career – where you can prove to employers that you have process safety training beyond your undergraduate degree. Safety in the Process

Industries Runaway Reactions Risk Assessment

Dust Explosion Control Process Safety Lessons Taught from Experience Chemical Reactivity Hazards

Process Safety 101 Basics of Laboratory Safety Inherently Safer Design

Online. Flexible. Convenient.

• Chemical Engineering Progress monthly magazine

• Knovel: Over 200 critical titles can be researched through Knovel. Leading technical handbooks, materials, and databases using Knovel’s unique analytical tools including interactive graphs, tables, unit converter and periodic chart.

• AccessEngineering : AIChE Members can access Perry’s through Mcgraw-Hill’s new scientific library. Quick-search dictionary of over 100,000 scientific and technical terms

Publications

Chemical Engineers are Lifelong Learners

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Safe Work Procedures

• Chemical Engineers add value by: – Ensuring safe work procedures are in place, such as:

• Confined space entry procedures to ensure safety of affected employees

• Isolation of energized equipment ( lockout/tag out) to prevent unexpected enerization of equipment

• Hot work permits ensure safe work area in which hot work is planned

• Monitoring/minimizing potential exposure to hazardous chemicals such as carcinogens ( benzene, formaldehyde, etc.)

• Results in improving safety performance• Better employee safety in the workplace is critical

to increasing motivation and productivity

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Incident Investigations

• Chemical Engineers add value by: – Reviewing all incidents (including near-misses) that

resulted or could have resulted in a injury or catastrophic release of a hazardous chemical by • investigating to determine root cause(s)

• identification of remedial action(s) to minimize likelihood of reoccurrence

• timely follow-up on remedial action plans

• Process incidents provide an opportunity to learn and prevent future occurrences

• Each avoided incident increases plant production and profit.

AIChE Academy

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• Center for Chemical Process Safety (CCPS) • Formed 30 years ago

• Develops guidelines for safety

• Extensive education program for students

• DIPPR (physical properties)

• Center for Sustainable Technology Practices

• Sustainable Packaging Cosmetics Roundtable

• Consortium on CHO Systems Biotechnology

Industry Technology Alliances

Partnering with industry to work together and develop a further understanding of a particular topic

• AIChE has formed the following groups to inform members and focus efforts:– Center for Energy Initiatives (CEI)– Institute for Sustainability (IfS)– International Society for Water Solutions (ISWS)– Society for Biological Engineering (SBE)

Energy Environment Water Health & Nutrition

Technical Communities

Working with chemical engineers from Industry & Academia

around the globe collaborating, innovating and creating the future.