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Gas Turbine Maintenance Strategy OEM LTSA, In House, or Hybrid? PETER SOUTH, WORKSTREAM LEAD GTSO AND GENOPS 16 TH AUSTRALIAN GAS TURBINES CONFERENCE 25 – 26 NOVEMBER 2015 MENZIES HOTEL, SYDNEY

Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

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Page 1: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Gas Turbine

Maintenance

Strategy

OEM LTSA, In House, or Hybrid?

PETER SOUTH, WORKSTREAM LEAD GTSO AND GENOPS

16TH AUSTRALIAN GAS TURBINES CONFERENCE

25 – 26 NOVEMBER 2015

MENZIES HOTEL, SYDNEY

Page 2: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Gas Turbine Overview

KALGOORLIE GAS TURBINE STATION – 63MW

WKGT2: 38MW, distillate fuel only, synchronous

condenser.

WKGT3: 25MW, distillate fuel only, synchronous

condenser, black start.

KWINANA POWER STATION

KwGT: 20MW, dual fuel, black

start.

KWGT2&3: 2xLMS100 dual fuel

100MW

Cockburn: 1 Alstom GT13E2

Combined Cycle, gas only, 240MW

GERALDTON GAS

TURBINE STATION

GGT: 20MW, distillate fuel

only, black start.PINJAR GAS TURBINE STATION – 584MW

PJ1: 38MW, dual fuel, synchronous condenser

PJ2: 38MW, dual fuel, synchronous condenser

PJ3: 38MW, dual fuel, synchronous condenser, inlet fogging, black start

PJ4: 38MW, dual fuel, synchronous condenser, inlet fogging

PJ5: 38MW, dual fuel, synchronous condenser, inlet fogging, black star.

PJ7: 38MW, dual fuel, synchronous condenser, inlet fogging

PJ9: 116MW, gas fuel only, inlet fogging

PJ10: 116MW, gas fuel only, inlet fogging

PJ11: 124MW, gas fuel only, inlet fogging

MUNGARRA GAS TURBINE STATION – 114MW

MN1: 38MW, gas fuel only, synchronous

condenser.

MN2: 38MW, gas fuel only, synchronous

condenser.

MN3: 38MW, gas fuel only, synchronous

condenser.

G

Kw

KalP

M

Page 3: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Synergy Strategy

Maintenance

StrategySpares Supply

Industrial OCGTS (F5, F6, F9)

Totally in house

Competitive supply from OEM and proven 3rd

party suppliers

HEGTs(LMS100)

Hybrid: Gas Turbine/Generator:-OEMBalance of Plant (BOP):- in house

OEM

CCGT(GT13E2)

Routine maintenance in houseOutages OEM LTSA

Exclusive OEM

Page 4: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Synergy Strategy

– Industrial OCGT

Rationale

GE Frame type gas turbines

are well established mature

technology with decades

of operating history

Synergy has been

operating and maintaining

the fleet since late 1980s

We have maintained

continuity of technical staff,

and have succession

planning in place

Competent, proven 3rd

party suppliers are plentiful

Page 5: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Synergy Strategy – Industrial OCGTMaintenance Practice

OEM recommendations adjusted in view of operating

experience

Small, highly experienced technical team

Contract labour for peak work

Condition monitoring

Oil and water sampling

Monthly, quarterly and annual checks

Vibration surveys

Themography

On-line PD monitoring

Implementing reliability centred maintenance

Page 6: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Synergy Strategy

– HEGT (LMS100)

Rationale

New technology; first

commercial operation in

Australia

Synergy has limited experience

in aero derivatives, and no

experience in LMS100

Synergy has extensive

experience with BOP or similar

plant

3rd party suppliers are non

existent

Page 7: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Synergy Strategy – LMS100Maintenance Practice

OEM Contract Service Agreement (CSA) for ‘covered

unit’

Turbine

Intercooler

Generator

CSA covers routine maintenance, scheduled

borescope inspections and scheduled hot section

exchange

Balance of Plant (BOP) maintained ‘in house’ with

contractor support for trade labour during outages

Page 8: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Synergy Strategy

– CCGT (GT13E2)

Rationale

Little internal expertise for

outage work

Experienced operators and

maintenance staff available for

training

3rd party component suppliers

are emerging but not yet

widely established

Page 9: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Synergy Strategy – GT13E2Maintenance Practice

OEM Long Term Service Agreement(LTSA) for outages

and spares supply

Local contract labour for outage support

Operator/Maintainer model for routine maintenance

and breakdown response

In house engineering expertise for outage quality

assurance and coordination

Actively exploring alternatives for end of LTSA term

Gas Turbines Users Forum (GTUF)

Development of third party spares supply

Page 10: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Developing in house capability

Ideal:

Involve technicians and engineers in construction and

commissioning

Work beside OEM during initial maintenance period

Succession planning and traineeships

Or:

Direct recruit experienced staff from market

Succession planning and traineeships

Page 11: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?
Page 12: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Outcomes: - Reliability

Spike YTD in 2014/15 due to a F5 on

extended outage pending retirement

decision; rest of fleet below 1%

There is no significant difference in reliability

between GT13E2 (LTSA) and OCGT fleet (in

house). Both below 1% since 2010.

Page 13: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Cost

Comparison

For Frame machines, in house

outage cost about half OEM

Start cost (maintenance) for

GT13E2 about 6 times that of F9

(but comparing OCGT with

CCGT)

Competitive supply

dramatically reduces

component and refurbishment

cost

There is a fixed cost in

maintaining internal expertise

Page 14: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Other things

to think

about

In house expertise guarantees

undivided attention

In house expertise makes you

an informed operator

Is your fleet big enough?

What is the OEM ‘list price’ of a

component?

LTSA/CSA gets better response

from OEM

Be careful about incentives

and penalties

Sometimes, the OEM will be as

baffled as you are

Page 15: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Maintaining relationship with OEM

Put yourself in the shoes of your local OEM rep

Look for win/wins

Take advantage of upgrade opportunities if they fit your business

drivers

Keep your door open

Page 16: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

SOWhat is the

best strategy???

Page 17: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

I Don’t Know

Page 18: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

It all depends

The size of your fleet

The diversity of your fleet

New technology or mature technology

Your business drivers

Your in house capability, and your appetite to develop it

Where you live

Your workforce stability/turnover ratio

Page 19: Peter South - Synergy - Gas turbine maintenance strategy – OEM LTSA, in house or hybrid?

Peter’s O&M Strategy Ready Reckoner

Technology Maturity

In house capability

In house

OEM LTSA or CSA

In house/ OEM hybrid

IIn house/ third party

hybrid

Third party or OEM LTSA/CSA