SVKM’S NMIMS

NAME: DEVVRAT THAKER ROLL NO: 505 MBA TECH (TELECOM) YEAR : 2010-11

A REPORT ON MAINTENANCE MANAGEMENT IN C&I

VPCL- ESSAR PROJECT’S

VPCL

• Vadinar Power Company ltd, is basically an captive power plant, Which is meant to provide round the clock power supply to essar oil ltd.

Evolution of VPCL

• Essar oil ltd is involved in refining and retailing of different petroleum products

• It current refining capacity is 14 million tones per annum (mtpa)

• These refining capacity is to be expanded upto 33 mtpa, By the end of year 2012

• Now the power requirement capacity of these refinery is very high, On its full load operation it requires nearly 75 Mw for 14mtpa and around 200 Mw for 33 mtpa

Requirement of Captive power plant

• Now in Jamnagar we have Gujarat Electricity Board (GEB), Which provides electricity, But the capacity of GEB is not enough that it can supply power to these refineries, That is Reliance and Essar

• Again the power supply, Which is obtained from these government sources are not round the clock, And these can affect the refinery business badly

• To avoid all these and to provide an round the clock power supply, These captive power plant VPCL was established

Competitive advantage of Vpcl

• In refinery operations, We normally use a term called Gross Refining Margins (GRM), to measure the profitability of the refinery

• These GRM is basically the difference between the Revenue received from the operation minus that of crude price and other operations costGRM = Revenues – (Crude price + operation expenditure)

• The present GRM for essar oil is $ 7.15/barrel

Gross Refining Margins

• Now these GRM fluctuate with the price of crude, That is if the crude price increases then GRM also increases

• These GRM are dependent mainly on two factors

• 1) Type of refinery and• 2) Quality of crude

Refinery type and Quality of crude

• Both these factors are interrelated to each other• Simple refinery :

A simple refinery is a one, Which seperates around 5 to 6 components, The main components are petrol and diesel.Now to operate with simple refinery, We require high quality of crude, So as to avoid the wear and tear of machineries.Here crude prices are high, But the cost of setting up a refinery is less.Essar operates on simple refinery, and crude is mainly imported from Iran.

Refinery type and Quality of crude cont…

• Complex refinery :A complex refinery seperates, All the components, which are available from the fractional distillation plantThe crude quality is low.Crude is cheaper but the setup cost for refinery is very highReliance operates with these type of refinery and fuel, and they mainly import there crude from Saudi Arabia

GRM of different companies

• Essar oil : $7.15/barrel• Reliance industries : $10.75/barrel• ONGC ltd : $ 6.15/ barrel• Singapore index : $ 8.0/ barrel

Capacity of various power plants in VPCL

• In vpcl, we have 3 power plantsThe first power plant is an combined power plant, which operates with both gas and fuel and has a capactiy of 75Mw.The second power plant is also a combined power plant and has capacity of 2*110 Mws.The third power plant is an coal fired plant and its capacity is of 325Mw.

Operations and cost efficiency of vpcl

• Now as VPCL is an captive plant, The main task is to control the cost as much as possible

• The first power plant is of 75 Mw and is a combined plant, Now for these plant the required oil that is High fuel oil (HFO) is obtained from the refinery as an subsidery product

• The gas which is required to provide ignition to these oil is obtained from the refinery, Which in turn receives these gas from petronet, Hence both the main fuel are available from refinery

• Now the cost of power depends on the cost of fuel, Here as it is low, The only cost required is the operational and maintenance cost

Cost Controlling

• Now if we look at all the above procedures the cost of producing power comes around to approx Rs 1.5/unit, Which is around Rs. 4.5 less then the normal power

• Moreover these cost is mainly due to maintenance and equipment handeling

• Therefore from above points, we can see the maintenance is the most important part in captive plant and again as the plant is not for commercial purpose, therefore equipments can be used for an longer period of time

OPERATIONS OF 77 MW POWER PLANT

Basic Principle of Power Plant

The power plant works on the basic principle of Rankin cycle

These is a four stage cycle :1) The working fluid is pumped from low to high

pressure.2) These high pressure liquid enters in a boiler,

were it is heated at constant pressure, so as to form saturated vapor.

3) These vapor is then expanded through turbine, which generates power.

4) The wet vapor enters condenser, So at to form liquid

Deaerator

• The main purpose of Deaerator is to remove dissolve gases

• The feed water is fed through perforated trays• These water is then subjected to heated steam,

Which is delivered to the lower portion of dearator

• Now as a result of heat exchange O2 and CO2 are dissolved and vented out

• Here O2 gas is removed as it causes corrosion in pipelines and BFP

• CO2 is removed as it decreases the Ph of a liquid, Which increases the rate of corroision

Boiler feed water pump

• Water from dearator first comes to BFP• BFP pumps these water to HRSG as per

pressure requirement of steam• There are two types of BHP1) HHP feed pump and2) HP feed pump

Characteristics of hhp and hp feed pumps

Particulars HHP feed pump HP feed pump

No of pumps 3 3

Speed 3000 Rpm 3000 Rpm

Temperature 105 deg celcius 105 deg celcius

Suction pressure 2 kg/cm sq 2 kg/ cm sq

Discharge pressure 85 kg/ cm sq 60 kg/cm sq

Differential pressure 83 kg/ cm sq 58 kg/ cm sq

Minimum flow 21 meter cube/hr 15 meter cube/hr

Hydraulic-Coupling

• It is used to produce HHP steam by using HHP feed water from BFP

• Here we use oil in between the pump shaft and the motor shaft

• By varying the quantity of oil, We can vary rotation speed of pump shaft

• As a result of the above process, We can vary the pressure, as per requirement

Boiler description

• The main components of boiler are as follows

1) Upper drum: It is also called as steam drum, and it is well supported by bank tubes and water well tubes.

2) Lower drum: It supplies water from steam to furnace bottom supplies, to all the four sides of wall.

3) Furnace: Furnace is of water cooled membrane, As it contain 3 sets of either oil/gas burners in it.

Boiler description contd

4) Burner: There are 3 burners in a boilerThe burner is normally ignited with the help of LPG and the required fuel is HFO or fuel gas.The burner has following main parts.

a) Air damper: It provides combustion air for burner through diffusers.

b) Atomizer fuel: It breaks heavy fuel oil into fine particle, So as to make combustion faster

c) Firing system: Fuel gun fires the required HFO, MP steam and LPG

Turbine and Generator

• TURBINE :A steam turbine is a mechanical device that extracts thermal energy from pressurized steam, and converts it into useful mechanical work.

• GENERATOR:The electric generator is a device that converts mechanical energy to electrical energy, generally using electromagnetic induction.

Fuel system

• LPG SYSTEM• DIESEL OIL STORAGE• DIESEL OIL PUMPING• FUEL OIL STORAGE• FUEL OIL HEATING• FUEL OIL PUMPING

Governing System

• Turbine speed/load is controlled through a WOODWARD 505E electronic hydraulic governing system

• electric single proportional to the designed speed/load change is generated by governor

• This signal is converted to a hydraulic single by electro-hydraulic converters

• The amplified signal controls the oil pressure from the control oil system to act on the turbine control valves

MAINTENANCE MANAGEMENT

MAINTENANCE MANAGEMENT

• The term maintenance management means to keep the equipment in operational condition or repair it to its operational mode

• Main objective of the MAINTENANCE is to have increased availability of production systems, with increased safety and optimized cost

MAINTENANCE STRATEGIES

• As the power plant instruments are very costly, Therefore it is necessary to plan the maintenance strategies properly

• The following four are the main strategies that we followed at vpcl

• These strategies are mainly based to predict the problems, prevent it and at last to repair it

• The following four strategies are used in vpcl1) Predictve maintenance2) Preventive maintenance3) Shutdown maintenance4) Breakdown maintenance

PREDICTIVE MAINTENANCE

• It helps to determine the condition of in-service equipment in order to predict when maintenance should be performed

• The key to PDM is “The right infromation in the right time.”

• It helps to plan the stopage and reduce these effects

• In VPCL it is performed at the end of every 6 months

Methods used in PDM

• Oil analysis• Vibrational analysis• Ultrasonic analysis• Thermographic analysis

Benefits of PDM

• It helps in minimizing the cost• It helps in reducing the unsheduled

maintenace• Reduces the spare part inventories• Optimizes machinery performance• Increases the plant capacity• It also helps in reducing the depreciation

of capital invested through maintenance

PREVENTIVE MAINTENANCE

• PM- is a time based strategy conducted at end of every 2 yrs

• when a piece of equipment is taken off line and inspected and based on the inspection repairs are made and the equipment on line

• There are 3 things, Which are of much importance while performing PM they are

1) Planning2) Scheduling3) Continuous improvement

Cost Benefits of PM

• PM is also called as Business Intelligence Which provides following features

1)tracking maintenance costs2)cost per volume produced3)equipment analysis 4) total cost of repair or replacement costs• Thus the above feature can help in

maintaining the balance between, Cost of maintenance and Replacement

Shut down management

• Shut down can be defined as scheduled down period for a plant for scheduled maintenance for an extended period of time

• It is generally carried out at the end of 18 months• It requires good plannning• It generally deals with the operation parts of the

refinery• If it is not applied properly then it can cause huge

impact on companies profits

Other maintenance technologies

• ABC meeting with plant head• Modification/ Inventory work to enhance plant reliability• Material inspection at warehouse and local store• 100% Compliance of history card for any instrument

finding• 100% Compliance of daily planning and progress report• Ensure 100% protection during heavy rain and Zero

failure• Instrumentation maintenance audit by internal agency• Reliability audit and finding implementation

VALUE ADDITIONS TO VPCL FROM MY SIDE

Carbon Captive power plant

• A power plant in which we capture and store carbon dioxide to mitigate the annual carbon credit goals, In order to prevent global warming is called as an Carbon captive power plantThere are 3 processes which are mainly being used

• Post combustion capture• Oxy-fuel combustion• Pre expansion combustion

Transport and Storage of CO2

TRANSPORT : Pipeline is the main source It provides end to end connectivity, with

a very little CO2 lossSTORAGE : The processes normally used are

Geo logical storage Ocean storage Mineral storage

PROFITABILITY

The majority of profit in Carbon captive power plants are obtained by following sources

Selling of CO2 to Oil and Gas fields Carbon market

Supply to Oil and Gas fields

Depleting Oil and Gas fields require infusion of CO2 As time passes the natural gas surrounding the oil

field starts depleting The above mentioned threat is an profit making

opportunity to Carbon Captive Power Plant, As it mainly serves two purposes

1) We can store CO2 in place of natural gas 2) It helps in providing cushion to the oil fields, to

keep the surrounding conditions in oil field normal Being in Gujarat these option is very much

profitable with lots of oil and gas fields located here

Carbon Market

An Carbon market is a specific market which is designed for the sale of green house gases like carbon dioxide and methane

The standardized unit which is being used for transaction is CARBON CREDIT

CARBON CREDIT: Carbon credit is a certificate or permit to

transfer one ton of Carbon dioxide 1 Carbon Credit unit = 1 ton of CO2

Indian examples of selling Carbon Credits

Few days before UN , certified Reliance power’s 3 ultra mega power project, for saving 48.5 million carbon units ,for a period of 10 years

By saving these carbon credit units, they are about to earn some 5,000 Crore Rs during these period of 10 yrs

Another example is of British petroleum, which entered in India so as to buy and save carbon units by starting an subsidary company

Thus it can be said that Carbon Credit can serve as highly efficient source of revenue in future

SHALE GAS

SHALE GAS

It is a natural gas , which is produced from Shale Deep inside the sea, At a depth of around 3,000

mts , there are some shale rocks, which consist of mature petroleum

Due to intense heat and pressure these petroleum gets converted into natural gas, called as the shale gas

Global importance of Shale Gas

Since the year 2000, the consumption of Shale gas or the natural gas has been replace by shale gas upto 35% in USA

As a result of these reserves , there dependence for natural gas on Russia and Arabic countries have been reduced to considerable amount

They have the largest reserve in world, which will eventually help them to reduce the electricity prices

All the Euro-zone countries have started looking towards the shale gas as the future fuel, In order to avoid increasing cost of natural gas from Arabic countries

Indian Shale Gas reserves

India has potential of being the worlds largest Shale gas producer to support its Super power operations

Recently ONGC founded a gas block in West Bengal, with an area over 12,000 sq km

Another potential sites are at Cambay province, KG basin and Kutch sector

Reliance Industries and RNRL are some of the other companies involved in its extraction

In these fiscal year Reliance acquired some 40-49% share in Atlas co, in marschellus shale gas field, Which is eventually the largest producer of shale gas

Importance of Shale gas reserves to India

An Mou being signed between USA and India, during Barack Obama’s visit to India, To produce environmental friendly energy

Based on these Mou, India denied for the use of TAPI gas line

Reliance industries during these year reported a fall of 5 mmct of gas in KG basin

Reliance are about to enter in a strategic alliance with British Petroleum, for shale gas exploration in KG basin

All these may eventually help India for its monopoly in Natural gas like the Arab countries

Problems with Shale gas

It requires methods for controlling methane emissions

USA is working to reduce these emissions Now if we look the effect of methane gas, than

the effect of 0.2% of methane is almost equivalent to 6% of CO2 gas

The emission of methane takes place only when there is a leakage during its extraction procedure

Conclusion

• It was a great experience to work with a company having operations worth Rs. 45,000 crore

• Seeing the operations of such a company and consulting them was great

• It helped me in developing my skills, That is to propose new products or research at such an large level

• Moreover it helped me in getting professional

THANK YOU