Improved FEED Services by LTTS Improves CAPEX Savings

Client Profile, Objectives, and Challenges: LTTS’ (L&T Technology Services) client is a global oil and gas company.  The client wanted to increase the reliability and capacity of the sour water stripping system with improved FEED Services so that water diversion to crude tanks for storage is eliminated for both current and future sour water processing demand.  Sour water is a waste product of various crude oil refining processes at refineries.  Sour water stripping is used to remove ammonia (NH3) and hydrogen sulfide (H2S) from sour water streams coming from many unit operations to condition it for discharge or reuse within the refinery.

The client faced major challenges in the Front End Engineering and Design (FEED) stage due to variation considering the safety aspects, CAPEX control, risk mitigation, and execution model of the project.  It was difficult to manage the total cost of ownership while managing the project in the traditional execution model, resulting in delays in construction, production, and time-consuming rework.  LTTS was selected to meet the client’s objectives and challenges.  LTTS’ combined expertise in plant engineering and digitalization has helped resolve pressing challenges in the oil and gas industry.

LTTS’ Strategic Approach: LTTS helped the client overcome the challenges and achieve its objectives by:

• Performing ideations, ensuring safety and implementing various cost-effective ideas, resulting in significant cost savings in the project  
• Implementing Advanced Work Packaging (AWP) methodology without impacting the project schedule and cost
• Generating an intelligent 3D model, allowing the stakeholders to switch on/off the layers for each construction work area, making estimation easier

LTTS implemented the deliverables with focus on the client’s global standards and network, site requirements, and adherence to regulatory specifications, operation, maintenance, and safety aspects.  Major deliverables included design basis, PIDs, PDS, piping layout, MDS hydraulics, bottom cooler bundle replacement, existing structure adequacy check, etc.  

Business Benefits: The tangible benefits were:  

• Implementation of 15+ process improvement ideas keeping plant and personnel safety in mind
• Adopted Hybrid Model (utilization of color laser scan data) for the existing structure adequacy check
• The laser scan helped in approximately $100K savings compared to the traditional method
• Pump costs were reduced as the variable frequency drive (VFD) and recycle control valve was eliminated for bottom and reflux pumps

The client was satisfied as LTTS’ ideas and innovative approach helped the company realize CAPEX savings of approximately $1 million against the original estimate.