Central Asia Refinery Improves Energy Efficiency, Hydrocarbon Loss, and Reliability and Maintenance Efficiency with Estimated 35M USD/Yr in Benefits

Solomon’s Performance Excellence Process™ (PEP™) helped to identify and monetize opportunities and establish road maps to sustainable improvement.

READY TO IMPROVE REFINERY PERFORMANCE

A National Oil Company joined the 2018 Solomon Worldwide Fuels Refinery Performance Analysis (Fuels Study) and worked on a project to enhance energy efficiency, process yields, and hydrocarbon loss on a refinery. The client came to Solomon to significantly enhance the performance and competitiveness of one of its Central Asian refineries in the areas of energy efficiency, hydrocarbon loss, and maintenance costs. Before the project, the refinery’s primary focus was on gains received through cost reductions, operational changes, and low investment ideas.

Solomon proposed using its PEP methodology, which includes four phases: Performance Assessment, Recommendations Development, Implementation of Action Plans, and Sustain Improvements.

PHASE 1 – PERFORMANCE ASSESSMENT

Solomon systematically evaluated the refinery’s operational, maintenance, and technical performance compared to peers and identified performance gaps in energy efficiency, hydrocarbon loss, and maintenance costs using the 2020 Fuels Study database.

Over a 3-week period, a Best Practices Assessment (BPA) was conducted with reviews of the refinery’s work processes and practices, and interviews with key refinery personnel. The purpose of the BPA was to develop an understanding of the root cause of the performance gaps when compared to industry peers.

In terms of energy efficiency, Solomon used a set of proprietary Best Practice Scorecards to rate the strength of the refinery’s practices and work processes (refer to Figure 1). During the assessment, best practices were evaluated, and the results were reviewed with the refinery staff through several interactive workshops.

PHASE 2 – RECOMMENDATION DEVELOPMENT

The second phase of the PEP focused on developing and prioritizing a list of no-to-low-cost performance improvement recommendations focused on energy efficiency, hydrocarbon loss, and reliability and maintenance.

Thirty-one detailed recommendations and 16 Quick-Hit recommendations and benefits were identified based on the best practices and performance assessments from Phase 1.

The best practices reviews revealed that the client management should reduce non-value-added tasks, implement best practice work processes, and continue to improve existing work processes to close performance gaps to improve long term performance.

A series of Prioritization Workshops then followed, with appropriate refinery personnel assigned to review and prioritize the improvement recommendations. The Prioritization Workshops were a key activity in creating a positive environment for change.

PHASE 3 – IMPLEMENTING ACTION PLANS

During Phase 3, action plans were created for the highest priority recommendations along with the financial benefit of each.

Solomon’s Best Practice Teams (BPTs) were established for each of the improvement areas -- energy efficiency, hydrocarbon loss, and reliability and maintenance. These refinery-led teams worked to develop and execute implementation plans with regular guidance provided by Solomon’s Subject Matter Specialists.

A Change Management Team (CMT) was established to provide oversight and assistance to the BPTs. The team consisted of refinery senior management and a Solomon project executive. The refinery commented that the CMT structure allowed them to maintain full control of the project resources and dictate the pace of the improvements.

IMPLEMENTED RECOMMENDATIONS DROVE REAL RESULTS

The refinery implemented several recommendations, including reducing reid vapor pressure (RVP) giveaway by blending butane into gasoline for winter blends, resulting in a refinery-estimated 3.6-5.4M USD in savings each winter. The client implemented a number of other Quick-Hit recommendations yielding between 100 and 150k USD/yr.

The refinery operator is continuing to take actions to further enable and support implementation. The project has shown a quick payback – with benefits achieved over the first 6 months, exceeding the project costs several times over.

OVERALL BENEFITS

Overall, Solomon’s Performance Excellence Process has identified a total of 35M USD/yr in potential savings, of which between 20-25% were Quick Hits.

CONTINUOUS IMPROVEMENT PRESENTS ONGOING COMMITMENT

The refinery continues to progress the implementation of the recommendations and has committed to participate in the 2022 Fuels Study to measure and validate improvement from the PEP exercise.