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High Quality FEED
in SK E&C
2015.Mar. SK Engineering & Construction LTD. Process Engineering Team
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CONTENTS
High Quality FEED in SK E&C
A. SK Introduction ------------------------------------ 5 min.
B. FEED in Overall Engineering Cycle ------------------------------------ 5 ~ 10 min.
1) Feasibility Study & Visualization
2) CEP - Conceptual Engineering Phase
3) FEED - Front End Engineering Phase
C. FEED – SK E&C Execution ------------------------------------ 20 min.
A. Project Execution Strategy
B. Optimal Complex Design Strategy
C. Contribution
D. Major Deliverables
E. Tools & Systems
F. Experiences
D. Q&A ------------------------------------ 15 min.
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SK Group SK is one of the top 3 biz conglomerates in Korea with combined revenue of U$ 149 Bil. and comprised of 80 affiliate companies sharing the SK brand and culture
SK Innovation SK Energy SK Global Chemical SK Trading International SK Gas SK Lubricants
SK Telecom
SK Hynix
SK E&C
SK Shipping
SK Broadband
SK Telink
SK C&C
SK Networks
SK Securities
Walkerhill Hotel
Energy / Chemical
Trading / Service Telecommunication
Group Sales : U$ 149 Bil. Net Profit : U$ 4.3 Bil. Employees : Over 70,000 Korea Economy Contribution :
11% of GDP
*fiscal year 2013
Business Development Center – Oil & Gas Plant -
A. SK Introduction
3
SK E&C
ENR INTERNATIONAL CONTRACTOR (‘14)
BACKLOG ORDERS (‘13)
OF PROVEN SUCCESS SINCE 1977
TOP 43
US$ 20 BILLION
38 YEARS
OF PROJECT EXPERIENCE OVER 30 COUNTRIES
SK E&C, a global leading EPC contractor with many success stories of multi-billion dollar EPC projects, also serves our valuable clients with comprehensive services for Business Development
Business Development Center – Oil & Gas Plant -
A. SK Introduction
4
0.5km 1km
SK Energy (Inchoun Complex) • CDU : 275,000 BPSD (2 Units)
• VDU : 70,000 BPSD
• HCK : 40,000 BPSD
• VBU : 40,000 BPSD
• HPU : 85 MMSCFD
• SRP : 150 T/D x 2 Trains
SK Energy (Ulsan Complex) • CDU : 845,000 BPSD (5 Units)
• VDU : 85,500 BPSD (3 Units)
• RFCC : 57,000 BPSD
• HCK : 45,000 BPSD
• Reformer : 45,000 BPSD
• ARDS/VRDS : 72,000/40,000 BPSD
• HPU : 145 MMSCFD
• SRP : 1,195 T/D
SK Energy
A. SK Introduction
5
Total
Solution
Provider
Overall Engineering Life Cycle :
Comm. &
Start-up (Operation &
Maintenance)
Customer
EPC Engineering
Procurement
Construction
FEED Front End
Engineering
Phase
CEP (Conceptual
Engineering
Phase)
Visualization Feasibility
Study
B. FEED in Overall Engineering Lift Cycle
6
CEP (Conceptual
Engineering
Phase)
FEED Front End
Engineering
Phase
EPC Engineering
Procurement
Construction
Comm. &
Start-up (Operation &
Maintenance)
Total
Solution
Provider
Customer
Overall Engineering Life Cycle :
Feasibility
Study Visualization
Objective:
To Evaluate the Feasibility of the project
To Develop Strategies & Configuration to maximize the Economic Value of the project
To Establish Business Opportunities and Risks from the project
Main Phases:
Market Analysis and Price Forecasting
Technology Screening and Ranking
LP Case Configuration and Screening
B. FEED in Overall Engineering Lift Cycle
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Objective:
To define and finalize “Design Basis” with Client’s confirmation
To select the Optimal Configuration Case
ITB to Licensors & Licensor Technical / Commercial Evaluation
UT/OS Technical / Commercial Evaluation
Select Optimal Licensor(s)
Select Optimal Technologies for UT/OS Design
Total Investment Cost Estimation (ex. +50 and -20% of the actual installed cost)
CEP (Conceptual
Engineering
Phase)
FEED Front End
Engineering
Phase
EPC Engineering
Procurement
Construction
Comm. &
Start-up (Operation &
Maintenance)
Total
Solution
Provider
Customer
Overall Engineering Life Cycle :
Feasibility
Study Visualization
Customer
B. FEED in Overall Engineering Lift Cycle
Main Phases :
Select Optimal Configuration Case
Design Basis / Design Criteria / Constraints
Licensor Selection / Technology Selection
Cost Estimation
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“FEED” stands for Front End Engineering Design.
“FEED” is Basic Engineering which comes
after the Conceptual Design or Feasibility & Visualization Study.
“FEED” focuses
“Technical Requirements”
Reflect all the client project requirements and avoid significant changes during the next execution phase (ex. EPC
phase)
“Investment Cost Estimation for the Project”
Class II or III Cost Estimation to provide accurate data to the Client to enable launching the Project
“FEED” produces the Design Package for
Bidding the Execution Phase Contract (ex. Next EPC phase ITB)
Using as the Design Basis for the Project
CEP (Conceptual
Engineering
Phase)
EPC Engineering
Procurement
Construction
Comm. &
Start-up (Operation &
Maintenance)
Total
Solution
Provider
Customer
Overall Engineering Life Cycle :
Feasibility
Study Visualization
FEED Front End
Engineering
Phase
B. FEED in Overall Engineering Lift Cycle
9
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
FEED Front End Engineering Design
C. FEED – SK E&C Execution
10
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
FEED Front End Engineering Design
C. FEED – SK E&C Execution
Hands-on,
Experienced
Personnel
Abundant Project
Experiences
Strong Connection
with Clients &
Licensors
PROJECT
SUCCESS
Schedule Driven for Project
Early PO for LLI through strategic alliance major manufactures
Overlapping between FEED and EPC
Total Guarantee from FEED to EPC work
Optimized O&M Service through organic collaboration with SK Energy from early stage
Client’s cost down through cumulative know-how and creative idea Value Engineering
Acquiring proven Licensor through SKEC’s long term relationship Collaboration
Project Operation
Transparency Collaboration with Client’s engineer
Seamless Work
One stop process by one contractor
Shorten Period No idle time to select bidder for EPC work
Reliability Single Point Responsibility from FEED to EPC
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
COST
Transparency based on mutual trust (Mutually agreed OBE Procedure)
Minimize uncertainty
Execute value Engineering
Lessons Learned Workshop
SCHEDULE
Early freezing of conceptual design
Improvement of approval cycle through joint review meeting
Maximize the utilization of main spec.
Early issuance of MR
Team building Efforts
QUALITY
Design Quality Audit by an independent internal audit team consists of
Senior Expert Group
Involvement of experienced engineers
Execute safety study : HAZOP,SIL,etc
“Complete Reliable FEED Package on-schedule”
C. FEED – SK E&C Execution
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
MANAGING DEVELIVARBLES
OPTIMAL COMPLEX DESIGN
PROJECT EXECUTION
A consistent set of design specifications for the entire complex.
A smooth transition from the Licensors and/or Basic Design Contractors
to the detailed design contractor enabled by early participation by the
contractor as resident engineers.
Minimizing the energy consumption for the site as a whole using process
models and pinch techniques.
Optimizing the Hydrogen Network by optimizing the process conditions for
the hydrogen sources and sinks, hydrogen recovery using process model and
pinch analysis.
Optimizing the individual process units using rigorous process models and
carefully selecting optimal process design parameters and catalyst.
Single point accountability to simplify the contract structure, expedite
decision making and conflict resolution
Coordination and management of all key meeting to expedite design work.
Conducting optimization studies in parallel with the basic design of the
process units.
Developing and Updating conceptual design of the off-sites and utilities
systems in parallel with the process unit designs.
Steering Committee with Senior Project Level for improvement of project
inconvenience regarding project managing and well decision making for
project issue.
“Complete Reliable FEED Package on-schedule”
C. FEED – SK E&C Execution
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
SKEC will transfer the Client’s requirement
to Licensor to minimize the Rework.
“For the successful completion of the Project, SKEC will involve in the Licensor
Design Work from early stage”
SKEC will proceed the FEED work with Piecemeal Basis Licensor Product and issue the M.R. for Long Lead Equipment as earliest as possible.
SKEC will support Licensor to freeze the plot plan
upon close collaboration with Client.
“SHORTEN THE OVERALL SCHEDULE”
& “ENSURING DESIGN QUALITY”
C. FEED – SK E&C Execution
SKEC will participate in the V.E session of Licensor PDP phase for optimizing CAPEX & OPEX based on SKEC’s EPC experience.
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
C. FEED – SK E&C Execution
1) Project Overview
Project Capacity
Project Operation Mode
Project Products & Required Product Specifications
Market Analysis
Storage Management & Logistics
Potential Location & Conditions
Future Expansion / Future Facility
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
C. FEED – SK E&C Execution
1) Project Overview
- Project Capacity
- Project Operation Mode
- Project Products & Required Product Specifications
- Market Analysis
- Storage Management & Logistics
- Potential Location & Conditions
- Future Expansion / Future Facility
2) What Infrastructure / Utility?
Site acquisition and terrain?
Access to the Site?
Sharing and/or Utilizing the existing infrastructure to be built?
Access to the site and availability of utility such as NG and water?
Viability of Power Plan within complex?
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
C. FEED – SK E&C Execution
1) Project Overview
- Project Capacity
- Project Operation Mode
- Project Products & Required Product Specifications
- Market Analysis
- Storage Management & Logistics
- Potential Location & Conditions
- Future Expansion / Future Facility
2) What Infrastructure / Utility?
- Site acquisition and terrain?
- Access to the Site?
- Sharing and/or Utilizing the existing infrastructure to be built?
- Access to the site and availability of utility such as NG and water?
- Viability of Power Plan within complex?
3) Review and Confirm Refinery Configuration in order to minimize operating risk and maximize product yield.
Any technical argument and/or data flow consistency between basic engineering contractors (ex. Licensor)?
Client requirement including “Alternative Operation Mode” is well incorporated?
Corrosion Control & Mitigation System?
Multi-trains (or process units) design scheme is reasonable?
LPG (CE/C4) Management – All produced LPG is sent to fuel? Or other conversion unit is there?
Minimum use of Hydrogen, while the commercial and environmental aspects have to be considered?
Hydrogen producer? SRP / Off-gas Balance / POx / PSA
Optimal and Safe & Reliable Design for Flare & Vent System?
HP, LP, LLP, Acid, HF, Cold Flare Systems?
Location and Number of Flares?
Grouping considering refinery start-up & shutdown strategy?
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
C. FEED – SK E&C Execution
1) Project Overview
- Project Capacity
- Project Operation Mode
- Project Products & Required Product Specifications
- Market Analysis
- Storage Management & Logistics
- Potential Location & Conditions
- Future Expansion / Future Facility
2) What Infrastructure / Utility?
- Site acquisition and terrain?
- Access to the Site?
- Sharing and/or Utilizing the existing infrastructure to be built?
- Access to the site and availability of utility such as NG and water?
- Viability of Power Plan within complex?
3) Review and Confirm Refinery Configuration in order to minimize operating risk
and maximize product yield.
- Any technical argument and/or data flow consistency between basic engineering
contractors (ex. Licensor)?
- Client requirement including “Alternative Operation Mode” is well incorporated?
- Corrosion Control & Mitigation System?
- Multi-trains (or process units) design scheme is reasonable?
- LPG (CE/C4) Management – All produced LPG is sent to fuel? Or other
conversion unit is there?
- Minimum use of Hydrogen, while the commercial and environmental aspects have
to be considered?
- Hydrogen producer? SRP / Off-gas Balance / POx / PSA
- Optimal and Safe & Reliable Design for Flare & Vent System?
HP, LP, LLP, Acid, HF, Cold Flare Systems?
Location and Number of Flares?
Grouping considering refinery start-up & shutdown strategy?
4) Licensor (Basic Engineering Contractors) Coordination
Basic Engineering Design Data
• Project Information
• Meteorological Conditions
• Utility Condition
Process Design Basis
• Plant Capacity & Site Location
• Applicable Codes and Standards
• Feedstock Properties
• Operating Mode & Design Case
• Battery Limit Conditions
System Process Design Criteria
• Numbering System
• P&ID Typical Arrangement &
Specification Recommendations
• Guidelines for Equipment &
Instrument Design
Plot Plan : Support for Early Freezing
PFD Review
• Control Scheme Setup
• Operating Condition Review
MSD Review
• MSD Review from the Economic
Point of view
P&ID Review
• Conformity Check against System
Process Design Criteria
• Control Scheme Check against PFD
• Material Review against MSD
• ESD Logic Review
Equipment Datasheet Review
• Conformity Check (H&MB, MSD,
Design Criteria)
• Review of Over-design and Sparing
Philosophy
Licensor Work Stage Licensor Kick-off MTG Stage
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
Process Engineering
• Design Basis
• Process Description
• Process Flow Diagram
• Equipment List
• Process Equipment Datasheet
• Hydraulic Calculation
• Piping and Instrument Diagram
• Process Instrument Datasheet
• Line Designation Table
• Utility Summary
• Effluent Summary
• Relief Load Summary
• Chemical and Catalyst Summary
• Operation Philosophy
• Mechanical Equipment Design
Criteria
• Equipment Datasheet Update
• Equipment Specification
• Equipment Construction and
Installation Specification
Mechanical Engineering
• Instrumentation & Control
Engineering
• Instrument Design Criteria
• DCS/ESD/FGS Specification
• Instrument Datasheet
• Control System Configuration
Diagram
• Instrument Specification for
Mechanical Package
• Typical Standard Hook-up
Drawing
I&C Engineering
• Electrical Engineering Design
Criteria & Philosophy
• Electrical Equipment Datasheet
• One Line Diagram
• Hazardous Area Classification
Plan
• Substation Equipment Layout
• Main Cable Route
Electrical Engineering
• Plot Plans
• Piping Material Specification
• Piping Specification
• Count and List of Piping Material
• Tie in List
• Equipment Location Plan
• HVAC (Design Basis, Spec &
Conceptual Drawing)
Piping Engineering
• Civil Design Criteria
• Structural Design Criteria
• Building Description
• Project Specification
• General Design & Layout Plan
• Site Grading Plan
• Topographic Survey Map
• Soil Investigation Report
CSA Engineering
C. FEED – SK E&C Execution
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FEED Front End Engineering Design
SK E&C FEED Execution
Why SK E&C?
SK E&C Execution Strategy
SK E&C Design Strategy
SK E&C Contribution
SK E&C FEED Major Deliverables
SK E&C Tools & Systems
SK E&C Experience
No. DISCIPLINES TOOLS & SYSTEMS
1
Process & System
ASPEN-Tech. PIMS
2 ASPEN ENGINEERING SUITES
3 AUTOCAD
4 INVENSYS SIMSCI
5 PROMAX
6 SPPID
7
Mechanical
COMPRESS
8 PULSE
9 PV ELITE
10
Piping
MICROSTATION
11 PDS / SP 3D
12 PDMS
13 Electrical
E-TAP
14 SPEL
15
I&C
ANSYS
16 INSTRUCALC (VER 7.1)
17 SPI
18
CSA
REVIT
19 SAP2000
20 STAAD PRO
21 TEKLA
22 Design HSE PHAST RISK VER 6.7
23
Material / Stress / HVAC /
M.W.E
CAESARII
24 FE-PIPE
25 FLOWMASTER
26 HTRI
27 MATHCAD
28 Start-up / O&M SKPCM
C. FEED – SK E&C Execution
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BM & Convert
SIMS
IMMS Ⅲ / Ⅳ
C-Works
SPF
Building Info
Eng’g Drawing
STAAD
Stl Str Analysis
SPI
Intelligent Instr. Eng’g
e-Draw
Ortho Gen.
BOM Gen.
e-Weld
Weld Control
ISOGEN
ISO Creation
ETAP
Elec. Transient
Intelligent Electrical Eng’g
PDMS
CAESAR II
Pipe Str Analysis
HTRI/HTFS
(File/Full)
HYSYS/PROII
Aspen+
Conceptual Cost Est.
Heat Transfer App. Process Simulator
Process Design
SPPID
Intelligent PID
Engineering Data Warehouse / EDMS / Engineering Integration
Document Management
Integration Batch
Current Future
IEES
i-PAM
Piping Joint
Project Web (SKEC EDMS based on DOCUMENTUM)
SK ACE
Engineering
Module
Construction
Module
Site Procurement
Module
Current
Description of Application
In-House
Estimation
TOMMS
Total Procurement
Description of Application Description of Application
Document
Management
Application
Integration
Engineering Data
Management Workflow
Change
Management
ABE
(Zyqad)
Developing
SPEL SP3D
TEKLA
REVIT
PJCS
Const. Progress
CPRS
Const. Daily
CDRS
BPCM
Stl. Tracking
Client EXTERNAL USER
PMC Joint Venture Subcontractors Site Vendors
EPPM EDPR RPR PPR
ACCE(Kbase)
Elec. Design
IEDS
Ready for project
Description of Application
Intelligent Material Management
SPM
STMS
Spl. Tracking
PDS
Inst. Design
IDPia
SpoolGen
Spl. Drawing
SK-PCM
Comm. task
SSD
System Def.
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