Process Design II

ChE 407
CREDITS – 2, SUNDAYS AND
WEDNESDAYS AT 11 AM, ROOM 254

TEXT : AKM ABDUL QUADER, “DESIGN

AND BUILDING OF PROCESS PLANTS –
SOME PRACTICAL GUIDELINES”
Chemical Engineering Project
Phase 1:Process Design
Covers steps from initial selection of the process to be
used through to the issuing of process flowsheets and
includes selection, specification and chemical engineering
design equipment
Phase 2:Plant Design
Includes detailed mechanical design to equipment, the
structural, civil, and electrical design and specifications
and design of ancillary services
What is a “Design” for a ChE ?
Determination of the problem and Need for Urea for our agriculture
constraints
Different processes available
Generation of potential solutions around the world for production of
and selection of the optimal one Urea and selection of the “right”
process
Development of sufficient detail
information about the solution Carrying out Engineering studies –
Basic and Detailed Engineering
Implementation of the selected
solution Construction and operation of the
project
 Process Design Related Courses in ChE,
BUET
ChE 405: Process Design I ( 3 credit)
◦ Objective: Design consideration, Equipment design,
Economic analysis and profitability
ChE 407: Process Design II (2 credit)
◦ Objective: Project engineering: steps required to complete a
chemical plant project
ChE 408: Plant Design sessional (4.5 credit)
◦ Objective: Conceptual Design, Process diagrams, Layouts,
Calculations and Documentations
Course Outline – for Process Design II
Introduction Process and Time Critical Equipment
and Materials
Definition of a Process Plant
Procurement for an Engineering Project
Technical Definition of a Project
Review and Approval of Engineering
Design Basis Documents
Selection of Process and Process Licensing The Vendors
Engineering Studies Negotiating a Contract
Basic Engineering and Detailed Engineering Inspection
Codes, Standards and Engineering Performance Test of a Plant
Specifications
Course Outcome
At the end of this course you are expected to learn and able to
do :
Follow and participate in steps required for building a new plant
Able to draft “DESIGN BASIS” for a proposed process plant
Able to refer to different “Codes and Standards” to be followed
Draft a purchase/procurement procedure for selection of Process
Licensor, EPC contractor, Vendors, Package Unit contractors, etc.
Able to chart a “Road Map” for different contracts to be signed
Comprehend/Understand your responsibility as a Process
engineer/Project engineer
Introduction
CHAPTER 1 OF YOUR TEXT
Stages of Implementation of a Chemical Plant
Project
 Inception
 Prefeasibility and feasibility study
 Basic engineering design
 Final economic evaluation
 Process licensing where necessary
 Detailed engineering design
 Procurement
 Construction and erection
 Startup and commissioning
 Performance and Guarantee test (PGT)
 Commercial production
Project Engineering

 Project Engineering bridges the boundaries between

engineering and project management, leading the technical
workers who contribute to the building of structures or products.
 Project management holds responsibility of every field of
engineers
 Project engineering is supervision and coordination of a variety
of activities such as engineering, management, purchase, office
administrations etc. encountered in the implementation of an
engineering project- best suited for a chemical engineer
 Client and contractor both may have project engineers
 Project Engineer’s Involvements
 Analysis of R & D data and information
 Evaluation of techno-economic studies
 Writing scope of work and making preliminary
cost estimation
 Coordination with the design engineering groups
for completing basic engineering
 Preparation of the project schedule
 Coordinating with engineering group
 Completion of final cost estimation’
 Preparation of bids and participation in
clarification/negotiation meeting of final contract
Project Engineer’s Involvements(cont’d)
 Arranging timely approvals of engineering documents
by the client
 Coordinating with client for issuance of permits, license
 Implementing procurement activities for scheduled
delivery of equipment and supplies
 Supervision and monitoring of plant construction
 Briefing the start-up team
 Completing project within approved budget
 Having the plant accepted by e client at the end of
successful performance/guarantee test
Design Engineers vs Process Engineers
 Design engineers, usually employed in EPC/GC
offices, are responsible for making the complete and
detail specifications for a production process most
economically
 Process engineering for a plant begins with its design
and continues throughout its existence
 Process engineers, mostly employed in operating
plants, engage in plant operation, implement process
adjustments if needed
Process Plant Design/Building:
Bangladesh Context (Public Sector)

 Process plants built in Bangladesh

Ammonia, urea, ammonium sulfate, sulfuric acid,
triple superphosphate, chloro-alkali, paper and
pulp, cement, sugar, petroleum refinery etc. on
turnkey basis.
 A turnkey is a type of project that is constructed so that it
could be sold to any buyer as a completed product
Parties Involved in Designing
Process Plants

 Process licensors
 Engineering contractor/EPC/General
contractor (GC)
 Package unit contractor
 Vendors of equipment and machineries
 Sub-contractors under engineering
contractors
 Consultants and technical associates
Different Stages of Process Plant
Implementation and Parties involved
Stage Parties involved
Prefeasibility and Consultants (appointed often by
feasibility studies donors)
Process selection GC/EPC
Technical specification Technical associates
Design basis Consultants, technical associates,
GC/EPC
Job standards GC/EPC, process licensor
Basic engineering process licensor, GC/EPC
Detailed engineering process licensor, GC/EPC, equipment
vendor, package unit contractors
Cost engineering GC/EPC
Stage Parties involved
Engineering studies GC/EPC, equipment vendor,
package unit contractors
Planning, scheduling, GC/EPC
monitoring
Review and approval of Technical associates
engineering documents
Procurement GC/EPC, package unit
contractors

Inspection GC/EPC, third party inspector

(services procured by the client)
Supervision of erection and GC/EPC
installation
Start-up and commissioning GC/EPC, Process licensors,
equipment vendor, package unit
Zia Fertilizer Company Ltd
(ZFCL)/Ashuganj Fertilizer under BCIC

 Production capacity 5,28,000 ton per year,

established in 1985
 Project could not be completed on scheduled as the
General Contractor did not complete the
performance and guarantee tests.
Parties Involved in ZFCL Project
Feasibility study James Chemical Engineering, USA
Consultant Scientific design consultants Ltd. and James
(engineering) Chemical Engineering, USA
Consultant Valley nitrogen producers/William brothers,
(management) USA
Consultant CORA engineering, Chur, Switzerland
(operations)
GC/EPC Foster Wheeler Ltd of UK
Process licensor Uhde for ammonia process, Benfield for
CO2 removal, Stamicarbon for urea process
Process licensee Uhde for urea process and CO2 removal
Engineering sub-contractor Udhe

Package unit contractors FWL, Paharpur cooling tower

ltd, Sumitomo, Belco, Nippon
Sanso, etc
Equipment vendors Neuvo Pignone, AEG, Borsig,
MHI, IHI, KTI, Larson and toubro,
FWL, CIE-Krebs, Babcock, Uhde
etc
Erection contractors A number o local and foreign
contractors
Type of contract Cost plus fee
Financiers and Donors Ten co-financiers
 Consultants for
1. Ministry of
feasibility studies
Planning
and project
2. Economic appraisals
relations
Government division
Aid giving agencies/
of 3. Ministry of Recipient/client Governments
Bangladesh finance

4. Ministry of
Technical
industry
Associates
5. Ministry of General
law Engineering
Contractor/EPC Technical
6. Regulatory advisers for
authorities donors

7. Special
cabinet
committee

Process Licensor Equipment Package unit Erection Specialist services contractors

vendor contractors contractors
Quick check

Can you differentiate between :

--- Design Engineer
--- Process Engineer
--- Project Engineer
When to perform feasibility study – who does it ?
What is the relationship between GC/EPC and Process Licensor ?
Who carries out Performance and Guarantee Test in a Turnkey
project ?
Which team must have Chemical Engineers ?
Definition of a Process
Plant
CHAPTER 2 OF YOUR TEXT
 Development of Project Definition
Primitive problem
“There will be a need for more nitrogen based fertilizer in Bangladesh to achieve food
autarky”
Options to solve the problem
1. Synthesize urea in prill or granular form
◦ using NG as feedstock and fuel
◦ using local Naptha/coal
2. Produce urea from imported ammonia using CO2 from flues gases of thermal power
plant
3. Develop biogas generation system using agriculture residue and apply the digester
sludge as fertilizer
Development of Project Definition(cont’d)
Considerations for comparing alternative
processes
Technical (proven or not, operability, control, yield, energy and utility
consumption, hazards etc.)
Raw materials (sources, upgrading, storage) Waste products and by products
Equipment
Costs
Time requirement
Process considerations (technology, provenness, scale-up, alternative uses of raw
materials)
Plant location
Detailed Market Survey

 Market: possibility, potential, price trend of products and by

products, distribution of customers
 Competition

 Product specification (impurities, shelf life)

 Sales and sales services

 Shipping restrictions and containers

Plant Location

 Location of the plant depends on: (See Peter & Timmerhaus)

(1)Raw materials, (2)Market, (3)Utilities availability,

(4)Climate, (5)Transport facilities, (6)Water supply, (7)Waste
disposal, (8)Labor supply, (9)Site characteristics, (10)Flood and
Fire protection, (11)Community factors, (12)Taxation, (13)Legal
requirements (permissions), (14)Environmental considerations
Points to be noted for a FEASIBILITY STUDY

 Raw materials (sources, quantity, quality, cost)

 Process know-how and alternative production technologies
 Facilities and equipment available
 Facilities and equipment to be procured
 Production costs and total investment
 Profits and profitability analysis
 Materials of construction
 Safety considerations
 Complete market analysis
 Plant location
 Process licensing and related legal matters
 EIA
A Defined Project

“A fertilizer plant is to be set-up at Fenchuganj, Sylhet in

Bangladesh, having capacity of 1700t prilled urea per day,
corresponding to 561,000 t of prilled urea per year, and an
intermediate capacity of 1000t ammonia per stream day,
corresponding to 330,000t of ammonia per year, including all
offsite auxiliaries, utilities and support facilities using
Natural Gas as feedstock and Fuel”
 What should be General Contractor’s (EPC’s) work for A
Turnkey Type Project ?

GC’s work (will be further discussed in a later chapter)

 Engineering
 Procurement
 Transportation
 Training
 Supply of technical documents
 Site receiving, handling and warehousing
 Temporary works
 Construction, Commissioning and Performance test
The Contractor will procure and supply the following:

 All itemized equipment

 Piping materials including accessories
 Instrument equipment
 Electrical equipment
 Steel structures and pipe racks
 Insulation and painting materials
 Bulk materials
 Spare parts as agreed etc.
Client’s Scope of Work
 Process licensing if needed (otherwise GC will do it)
 Review and approval of all engineering documents prepared by the
General Contractor
 Obtaining permits and import license
 Assistance to General Contractor for customs clearance
 Test operation and performance test under the direction and
supervision of the General Contractor
Client’s Scope of Supply
 Handing over the plant site to the contractors
 Equipment, materials (itemized/specific, not supplied by contractors)
 Raw materials, Utilities, etc.
 Bond area for speedy delivery of equipment and materials from the
port
*A bonded warehouse, or bond, is a building or other secured area in which dutiable
goods may be stored, manipulated, or undergo manufacturing operations without
payment of duty
Question
 Who is responsible for defining a project?
 How do you decide that performance guarantee test is complete?
 Why do you think market survey and EIA are important?
Technical Specification
CHAPTER 3 OF YOUR TEXT
Technical Specification

It is a special document that deals with the technical requirements

of the project in details and provides the basis to measure the
completeness of the built plant and performance
The contractor uses the technical specification for preparing its technical
proposal
Technical Specification Includes
 Technical definition of the project
 Description of plant site
 Design philosophy and Guidelines for design
 Engineering specification
 Process requirements
 Start-up, commissioning and performance tests
 Auxiliaries, offsites and package units
 Basic and details engineering definition
 List of drawings, sketches' and reports for references
Technical Definition of the Project

 Production capacity with reference to a reference day condition

 Example 300t ammonia on a summer day having wet bulb temperature
30oC and dry bulb temperature 35oC
 Purity of product ( composition, product size distribution, product
form etc.)
 Intermediate and final product storages when required
 Product transfer systems
 Sources of utilities for the plant
Definition of Utilities
 Water supply and Water treatment
 Cooling water and distribution system
 Fire water system
 Steam and Power generation
 Compressed air and Inert gas system
 Refrigeration system
 Yard piping
 Waste disposal system etc.
Auxiliary and Offsite Facilities in a Grass-Roots
Project
 Facilities for support services
 Jetty
 Laboratories
 Maintenance shops
 Garage and vehicular parking
 Warehousing
 Communication
 Utilities for housing colony
Auxiliaries, Offsite and Package Units
 Water treatment plant
 Cooling tower
 Steam generator/boiler
 Electric power generator
 Compressed air unit
 Instrument air unit
 Inert gas generation plant
 Refrigeration plant
 Incinerators
 Flares and stack
 Effluent treatment plant
 Packaging or bagging plant
 Uninterrupted power supply etc.
Description of The Plant Site
 Source and supply of raw materials (Gas, Liquid or Solid?)
 Source and supply of raw water (e.g. River water)
 Product transportation (Roads, Railway, River Transport or facility for
Sea-going vessels)
 Design site condition (mostly for utilities)
 Wind velocity and directions (any history of cyclones?)
 Seismic conditions (any history of earthquake?)
 Site datum level (how much above sea level?)
Chhatak cement: Ropeway Raw Material
Transport

Lafarge Surma: Conveyor belt

Product Delivery : Jetty
Design Philosophy
 Factors of consideration in Bangladesh
 Proven process
 Reliability
 High on-stream time
 Ease of maintenance
 Any other factor you can think of for Bangladesh?
Guidelines for finalizing the Design
 Economic evaluation
 Plant life
 Machinery and equipment
 Utilities
 Maintenance and turnaround
 Safety
 Layout
 Coordinates and elevations of the plant site
 Plant arrangement criteria
 Emissions and effluents
 Noise
Economic Evaluation
 From several options trade offs between operational savings including
maintenance and incremental investment are considered
 incremental investment to be returned by operational savings in 2-4
years
 Items of operational savings include utilities, raw materials, fuels,
chemicals, resins etc.
Plant life
 Design life of a chemical plant is 20 years
 Plant is depreciated over 10-12years ( economic life)
 For unit and equipment a useful life of 10 years or 100,000 hour are
acceptable
Machinery and Equipment
 Installed spares
 Production and safety units
 Fouling factors
 Turndown ratio ( maximum and minimum operating range)
 Consumption of utilities (please note that for a “Grass Roots” plant 40-
50% of the initial investment is for utilities – power generation and
distribution, water supply, purification, cooling, etc.)
Maintenance and Turnaround -
Criteria for choosing machinery

 The interval of Turnaround of machineries - two years or more

 Classification according to maintainability
 A complete change out after a given cycle
 Replacements of components of parts after a given period of
operation
 Period after which a regular overhauling is needed
Safety
 Inherent safety
 Loss prevention studies
 Normal and emergency conditions are to be considered
Layout Considerations – Plot Plan considerations

 Plant and immediate surrounding

 Battery limit plants
 Open areas for construction and turnaround
 Auxiliary facilities
 Internal battery limits layouts
 Expansion for future
 Minimum capital investment and a safe, efficient and reliable plant
Other Factors
 Coordinates and Elevations of the plant site
 Plant arrangement criteria
 Piping, electrical lines, drain, vents arrangement for inspection, services
and maintenance
 Safety features and considerations

 Emissions and effluents : compliances

 Noise: OSHA compliance
Engineering Specifications
 Codes and standards for the project
 Units
 Language for documentation
 Testing procedure
 Design pressure, temperature and materials of construction
 Rating of equipment
 Special fabrication technique to be followed
Broad Groups for Engineering Specifications
 General: relevant to the whole project
 Furnace
 Boiler
 Pressure vessels
 Storage tanks
 Heat exchangers
 Rotating machines
 Reciprocating machines
 Piping
 Instrumentation and controls
Process Requirements
 Establish design basis
 Plant capacity per day with reference to a defined da
 Plant capacity per year

 Operating days per year

 Provennness of the process with respect to design practices and equipment

 Quality of all products ( intermediate and end products)

 Operating life of catalyst if used

 Capacity of individual process steps if different from the rated plant

capacity
Start-up and Performance Tests

 Manuals and Documents for start ups and performance tests

 Operating Manuals

 Objective is to establish that the project or unit is capable of meeting

the requirements as per technical specifications

 Whether the equipment are adequately sized for rated design

 All manuals and documents including operating manuals, start-up,

plant upsets, emergency shut down etc. must be included
Other Items in Technical specifications
 Beneficial occupancy: completion and acceptance of different auxiliary
and offsite facilities by the client
 Basic and detail engineering (IMPORTANT)
 List of references, drawings
 Process flow sheet and material balance
 Feasibility study
 Site survey report
 Seismological data
 Meteorological data
 Raw material analysis
Design Basis
CHAPTER 4 OF YOUR TEXT
Design Basis
Site conditions, utilities, raw materials etc. which influence the process
design and the design of individual unit, equipment or facility of the over
all project

Site conditions are established by analyzing and interpreting data and

information collected over ten years

A design engineer always looks for worst conditions and the design is
made to accommodate those conditions
Components of Design Basis
Geological data
Climatic conditions
Utility conditions
Structural design
Raw materials
Geological Data

 Site characteristics: influences plot plan, foundation

structural design, earth work needed, underground
work and facilities
 Soil type: load bearing capacity, corrosive tendency,
basis for surface drainage system etc.
 Seismic conditions: structural and foundation design

 Jetty design: current forces, water levels, tides etc.

Climatic Conditions
 Design conditions for equipment or facility
 For cooling tower and compressor fans, gas turbine, diesel generators,
process equipment: Maximum wet bulb and dry bulb temperatures, relative
humidity in summer, minimum dry bulb temperature in winter
 A base temperature for thermal expansion and insulation is to be
established
 Design conditions for building
 Ambient conditions for HVAC (heating, ventilating, and air conditioning)
load calculation
Case Study: Wind Direction and KAFCO Plant
Layout
Annual Wind Direction in Chittagong Airport
Risk Score considering Toxic Release and Explosion
Utility Conditions
 Steam: Pressure, temperature and use (to drive steam
turbine, process fluid or heating medium) Silica, TDS
and conductivity
 Water:
 Cooling water: Pressure, temperature, fouling factor. PH,
conductivity, suspended solid, TDS, alkalinity, hardness
silica, COD etc.
 Demineralized water: total hardness, Fe, Cu, SiO2,
conductivity
 Potable water: meet the WHO or national standards
 Treated water: turbidity, PH, color, residual chlorine
 Fire water and raw water
Electric Power
 Voltage, phase and cycle for power source or power generation,
motors, normal lighting, instrumentation and control
 Main power source as well as emergency source such as diesel
generator, GTG and UPS should be considered
Air, Inert gas and Fuel
 Instrument air: pressure, temperature, dew point
 Plant air: pressure, temperature
 Inert gas: pressure, quality, high and low pressure and temperature
 Fuel: Composition, calorific value, pressure and temperature
 Natural Gas
 Refinery gas
Chemicals
 Water treatment chemicals and processing aids
 Sodium hydroxide, sulfuric acid, chlorine, hydrazine, tri-sodium or
disodium phosphate, ammonia
Structural Design
 Design live loading
 Design wind loading
 Requirements for grating for platforms and stairways
 Compressive strength
 Weight of insulation
Raw Materials/Emissions and Wastes
 All raw materials to be carefully specified
 Emissions and wastes should not exceed prescribed values of DoE
 Boiler blow down, metal cleaning, discharge from ETP, blow down from
cooling towers etc.
Conclusion
 Design basis should be verified before initiating basic engineering
 Process licensors MUST be provided with accurate design basis before
start of any design work
 Similarly the GC/EPC MUST be satisfied that it has received the
accurate design basis – otherwise any shortcomings during the
Performance Guarantee Test will be deemed to have been due to
wrong design basis provided by the client.
Selection of Process and
Process Licensing
CHAPTER 5 OF YOUR TEXT
Definitions
 Licensing is a legal means by which a proprietor of intellectual
property rights grants others the rights to use those rights under
controlled circumstances. The rights include patents, industrial models,
trademarks and copyrights etc.
 Know-how (secret and proprietary technological knowledge and
information) includes patented inventions, improvements, technical
information, design etc.
Definitions cont’d
 License: A contract between the licensor and the public.
 Process licensor:
 the owner of know-how, technical information and patents for the production
of a product or products from a certain feed stock using a process schemer
 The licensor is granted an exclusive right for the know-how or invention for a
limited period of time by a government
 Licensor is remunerated by payment of a lump sum plus running royalties
List of process licensors for some processes
Process Process licensor
Ammonia Kellogg, Halder Topsoe, Uhde, Lurgi
Urea Stamicarbon, Snam Progetti, TEC, MK-Ferguson
Sulfuric acid Monsanto Enviro-Chem, Lurgi, Halder Topsoe
Nitirc acid Uhde, Chematur, Stamicarbon, Monsanto Enviro-
Chem
CO2 Fluor Daniel, Lurgi, Benfield
Styrene ABB Lummus crest, Badger, Monsanto
PVC Atochem, John Brown, Uhde
Sodium Hydroxide Chlorine Engineers, Lurgi
Evaluation of a Process by licensee
 Literature search of patents and technical publications
 Preliminary evaluation on the basis of feed stock variations, by
products, yields etc.
 Evaluation of the process for economic assessment
 Detailed study of the selected process along with negotiation for a
licensing agreement
Criteria for selection of Process Licensor (from
an EPC contractor)
 The Thyssenkrupp Group of Germany
1. Establish Licensor list
2. Obtain expressions of interest from prequalified Licensors
3. Develop Licensor Bases of Design, Scope of Facilities and Services
specifications
4. Issue Request for Proposal.
5. Manage Licensor bidding Technical and Commercial Query process
6. Technical Evaluation, Clarification and Screening
7. Commercial Evaluation, Clarification and Screening
8. Selection of preferred Licensor(s) and recommendation(s) to CLIENT.
9. Negotiation of Terms
10.Award of Licenses (by client).
Evaluation of Process Licensors
 Experience and reputation
 Type of know-how and related patents the licensor may possess and R
& D efforts being undertaken to improve the existing technology
 Licensing history of the product or process
 Data on foreign investment and exporting activities by the licensors
 Assessment of the technology and techno-economic feasibility study
 Considerations in Licensor Technology Selection

 Does the licensor proposal confirm the technology offered will meet all
performance objectives set forth?
 What product yields/qualities are produced?
 Is the technology flexible with regard to capacity turndown requirements
and potential feed impurities?
 Is the technology commercially proven and reliable?
 Where is it currently operating in facilities of similar service and capacity?
 Have there been any historical problems? Is the technology mature,
improving, or a first-in-kind prototype?
Licensor Technology Selection

 What operating conditions and process configuration is

proposed by the licensor?
 What does the licensor include in his standard technology
package? Are there upgraded design packages with more
information?
 In order to understand the economics of operating the unit in
addition to the capital cost, the number of operators, utilities
consumption and production, other chemical additives,
catalyst, etc., and maintenance should be assessed to
capture the overall financial scenario appropriately.
 If a catalyst is required, is it readily available by one or
more vendors or require stringent process conditions?
 What is the projected run length and overall catalyst life?
 What affects the catalyst life?
Licensor Technology Selection

 How much plot footprint will the unit require?

 Is the environmental impact of the unit well established?
Are there waste streams or air emissions that need special
attention, and if so, what are they?
 Is the technology inherently safe or have special features
to ensure plant and personnel safety?
 Is the unit too complex to mechanically design or operate?
Are there any long-lead procurement items?
 Does the licensor offer technical support in the event of
technical issues or problems, operating procedures,
training, and startup services, etc.?
 What are the advantages and disadvantages associated
with the technology?
Case Study
Process Licensing Arrangement
 A client can directly obtain process license from the licensor for
building plant
 Engineering contractor or employed engineering firm can obtain
process license
 Engineering contractor may have long term licensing agreement with
process licensor
 Secrecy agreement
General Agreement
 Components: scope of work, business territory, terms of payment,
representation and guarantee, the duration of agreement, liability of
the licensor, termination
 Advisory services: participation in start-up
 Process guarantee may be included
 Liability: compensation for the failure of the process
Supplemental Agreement
 Defines the project of the client
 Services to be rendered by the process licensor
 Scope and obligations of the process licensor
 Components : contract price, terms of payment, performance
guarantee, representation and warranties, effective date, assignment
and sub-contract and three sections including Plant and process
description, engineering package and performance guarantee
Country Experience of Bangladesh
Project Process Process Process Engineering General
licensor licensee contractor contracctor

ZFCL Ammonia Uhde Uhde FWL

CO2- Benfield Uhde Uhde FWL
removal Stamicarbon Uhde Uhde FWL
Urea

CUFL Ammonia Kellogg TEC TEC TEC

CO2- Benfield Kellogg TEC TEC
removal TEC-MTC TEC TEC
Urea
Stamicarbon Urea Technology Licensed to Shahjalal in
Bangladesh
 Stamicarbon, the Licensing and IP Center of Maire
Tecnimont S.p.A., has signed License and Process Design
and Services agreements with China Chengda Engineering
Company (CHENGDA) and China National Plant Import &
Export Corporation (COMPLANT), for a urea melt and
urea granulation plant for the Shahjalal Fertilizer Project
(SFP) in Bangladesh
 Stamicarbon is responsible for the PDP (“Process Design
Package”), the training, (pre)-commissioning and start-up
services. CHENGDA is responsible for the basic and
detailed engineering, plus procurement. COMPLANT is
responsible for the construction and commissioning,
although partly executed by CHENGDA
Basic Engineering and
Detailed Engineering
CHAPTER 8
Basic Engineering Detailed Engineering

• Prelim. PFDs (Not yet approved by • Client approved final PFDs

Client) • Client approved final P&IDs
• Prelim. P&IDs (Based on unproven • Client approved Plot Plan based on
data) real equipment sizes
• Project Planning • All disciplines develop detailed specs.
and get Client approval
• Prelim. Plot Plan (Do not yet have
accurate sizes of Equipment) • Real and definitive structures
• Real equipment (Pump, HEs, etc.) –
• Prelim. line sizes and Material line Vendor information
Class specifications.
• Real vessels – Sizes, number, types of
• Project Scope trays, etc.
• Man hour Estimate • Real Piping routing layouts or 3D
• Prelim Schedule piping layouts
Basic Engineering Design (BED)
 Preliminary process studies (material balances, PFDs) and preliminary
plot plan.
 Preliminary Piping and Instrument Diagrams.
 Project Scope to include - Definition and sizing of main equipment
resulting in process specifications, Specification of effluents.
 Definition of control and safety devices
All the basic studies required to support a Basic Engineering Design
Package (BEDP) containing all data needed by a competent contractor
to perform the Detail Engineering.
Basic Engineering – when, how and what
 When ? --Basic engineering is undertaken in first few months of the
engineering design
 How ? --Significant amount of high quality engineering man-hours are
spent in the development and completion of basic engineering
 What ? --It includes
 General engineering
 Process engineering

 Specific engineering studies

General Engineering – what is it ?
 Deals with engineering requirements of the project with the main
purpose of having a safe, reliable and operable plant
 It is reflected in equipment, machineries and facilities through the use
of specified codes and standards and engineering specifications and
summarized in Job standards and methods
Process Engineering – the “detailed” work
 Different activities included under process engineering
1. Process
 Process description (see your ChE 408 project)
 Process flow sheets ( “ )
 Material and energy balances ( “ )
 Utility summaries of individual units and battery limits plants (have you done
this?)
 Utility schematic for tentative plant
 Raw materials, catalyst and chemical requirement (see your ChE 408 project)
 effluents (have you done this?)
Process Engineering cont’d
2. Engineering Data
 Equipment list

 Equipment data sheet (how many have you prepared ?)

 P & I diagrams

 Plot plan

 Single line diagrams

 Hazard classification drawings (have you done this ?)

 A consistent numbering system for control loop, instruments, instrument tubes,

wiring, etc. (have you done this?)
 Building sketch layouts
Process Engineering cont’d
3. Bid documentation (details will be discussed in Chapter 10)
 Define detailed engineering requirements for services,
equipment and material supply
 Specifications and requirements for contracted items and
package units
4. Preliminary Operating (SOP?) manuals include
 Plant description

 Testing and preparation

 Start-up

 Normal shut-down

 Process flow sheets and equipment details

 Equipment design details ( mechanical catalogues etc.)

 Personal protection and fire fighting recommendations

Process Engineering cont’d
5. Analytical data (for the lab)
 Analytical procedures for testing raw materials, catalysts , products

etc.
 Analytical data requirement and sample analysis frequency for

routine plant control

 Sampling techniques
Specific Engineering Studies
 These studies are required according to the technical specifications
 Basic Engineering Design Report (a typical outline/table of
contents – a case study)
Front End Engineering Design (FEED)
• Mechanical data sheets of the main equipment, starting
from the process specifications issued during the BED
and incorporating the specific requirements of codes
and standards to be applied to the project in question.
• Thermal rating of heat exchangers.
• Preparation of tender packages for the main equipment.
• Development of process and utility Piping and
Instrument Diagrams released for detail engineering.
• Development of detailed plot plans and hazardous
areas.
• Elaboration of the main piping, instrument, electrical
and civil works layouts.
• all the studies to be performed before ordering the
main equipment.
Detail Engineering
 Purchasing of equipment, main and bulk.
 Thermal rating of heat exchangers.

 Development of Piping and Instrument Diagrams

released for construction.
 Development of detailed piping drawings, including
isometrics and stress calculations.
 Development of detailed drawings related to
instrumentation, electrical facilities and civil works.
 Management of vendor drawings.

 Cost and schedule control.

 Start-up procedures.

all the studies to be performed before construction of the

plant.
General engineering
 Job standards: includes codes and standards, engineering
specifications and design basis
Process Engineering
 Process licensor’s package
 Calculations for vessels, heat exchangers columns,
reactors
 Design detail of critical equipment
 Procedures for normal and emergency shutdown
 Engineering data
P & I Diagram
 Mechanical design data of equipment, drawing,
material of construction
 Equipment layout, plant layout, facility layout drawings
 Hazard related drawings
Other Engineering
 Civil engineering
 Piling,foundation design and drawings
 Reinforcing, anchor bolts, embedded hardware, underground piping cable
routing, surface drainage and dewatering
 Structural design and drawings

 Piping, piped models

 Conceptual model
Example of Conceptual Model
Example of
Piping Model
Other Engineering cont’d
 Instrumentation
 Electrical
 Insulations
 Paintings
 Manuals
Services offered by ---
Basic Engineering Design (BED) covering:
 Conceptual process studies (material balances, process
flowsheets,…) and preliminary plot plan.
 Preliminary Piping and Instrument Diagrams.

 Definition and sizing of main equipment resulting in

process specifications.
 Specification of effluents

 Definition of control and safety devices.

all the basic studies required to support a Basic

Engineering Design Package (BEDP) containing all data
needed by a competent contractor to perform the Detail
Engineering.
Services offered by
Detail Engineering, covering:
 Purchasing of equipment, main and bulk.

 Thermal rating of heat exchangers.

 Development of Piping and Instrument Diagrams released for

construction.
 Development of detailed piping drawings, including isometrics and
stress calculations.
 Development of detailed drawings related to instrumentation,
electrical facilities and civil works.
 Management of vendor drawings.

 Cost and schedule control.

 Start-up procedures.

 The next slide presents a real life time schedule

(all the studies to be performed before construction of the plant.)

INTERESTING VERSUS BORING DESIGN
 A good scientist is a person with original ideas. A good engineer is
a person who makes a design that works with as few original
ideas as possible. Freeman Dyson
 German Junkers engine
 The German Junkers engine consequently had a life in service of
around 12 h, before it needed replacing with a new engine. It was a
terrible waste of resources. Cost, safety, and robustness had been
ignored in favor of novelty and elegance
 British jet engine
 The British jet engine designed at the same time was ugly, but it was
designed to be produced under the prevailing circumstances. It was a
“boring” design, but it had a very long service life, and went on to set
world speed records
Reports – typical table of contents
Codes, Standards and
Engineering Specifications
CHAPTER 9 of your text
Codes and Standards
 Codes deal with the minimum acceptable requirements for design,
fabrication, assembling, inspection and test of the materials and equipment.
These will produce safe and reliable equipment and materials
 Code encompasses regulatory matters highlighting safety and generally
enforceable by law: code of practice deals with design method, fabrication
procedure or materials of construction
 Standards represent agreement to adopt common rule for dealing with
routinely recurring items. It specifies objects like threads, pipe, fitting, valves,
flanges, electric motors , control instruments, test methods etc.
Engineering Specifications (compare Chapter 3)
 List of applicable codes and standards and relevant engineering
information
 Design criteria with respect to pressure, temperature, minimum wall
thickness, corrosion allowance, materials, loadings, detailed design,
fabrication, controls, instrumentations, safety
 Inspection procedure
 Surface preparation and painting
 Shipment
 Relevant drawings
 Maintenance requirement and spare parts
List of US Codes and Standards for Process Plants

 ASTM: American Society for Testing and Materials

 Testing procedure and material selection
 ASME: American Society of Mechanical Engineers
 Boiler, pressure vessel, welding materials, welders qualification, welding
procedure, NDT-non destructive testing, inspection
 AWS: American Welding Society
 API: American Petroleum Institute
 Process furnace calculation of heaters of petroleum refineries, heat exchangers for
refinery services steel tank for oil storage, rotating equipment (centrifugal pump,
compressors, gas/steam turbine,, blower, lubricating, shaft sealing, pressure
relieving systems, instrumentations, inspection etc.
List of US Codes and Standards for Process Plants
cont’d

 ANSI: American National Standard Institute

 OSHA: Occupational Safety and Health Administration
 NFPA: National Fire Protection Association
 TEMA: Tubular Exchanger Manufacturers Association
 Shell and Tube heat exchanger
 ASHRAE (refrigeration), NPC (Plumbing), AISC (steel
construction), ACI (concrete), NEC (electric code) etc.
 International Organizations for Standardization (ISO)
 The ISO 9000 standards for quality assurance and quality
management
 ISO 14000 deal with how a company manages the environment
inside it's facilities and the immediate outside environment. The
standards also call for analysis of the entire life cycle of a
product, from raw material to eventual disposal.
Case Study:
Gas Explosion of Kleen Energy
 On February 7, 2010, Edward Badamo, chief of the South
Fire District in Middletown, Connecticut, was at home when he
heard the distant rumbling sound -- an explosion at Kleen
Energy, a natural gas-fueled power plant under construction
about five miles away. The damage was so catastrophic that it
took Badamo and the other first responders nearly two days
to account for all of the plant’s employees, both alive and
deceased. Six workers died and nearly 50 others were
injured
 The explosion was caused by a "gas blow," according to an
investigation by the U.S. Chemical Safety Board (CSB). Gas
blows are a commonly used cleaning procedure in natural
gas-fueled power plants, where flammable gas is blown
through piping at high pressure to remove debris. Construction
of the plant, nearing completion, was heavily regulated, but
there was no standard guiding the gas-blowing procedure
Explosion at Kleen Energy
Case Study :
NFPA code for Gas Explosion Prevention
 A new NFPA (National Fire Protection Association)
56 (PS), Standard on Gas Process Safety, was
developed in less than 24 weeks, Development of
NFPA 56 (PS) demonstrates the ability of standards
development organizations to move quickly to help
safeguard lives and property. The new provisions
now prohibit the use of flammable gas during
cleaning procedures while safeguarding a range of
activities related to cleaning and repairing piping
systems.
West Fertilizer Company explosion
April 17, 2013
The explosion
 On April 17, 2013, an ammonium nitrate explosion occurred at the
West Fertilizer Company storage and distribution facility in West,
Texas, while emergency services personnel were responding to a fire
at the facility. Fifteen people were killed, more than 160 were injured,
and more than 150 buildings were damaged or destroyed.
Investigators have confirmed that ammonium nitrate was the material
that exploded.
Background

 At the time of the incident, the plant had last been inspected
by the Occupational Safety and Health Administration (OSHA)
in 1985. According to records obtained by the Associated
Press, OSHA cited the plant for improper storage of anhydrous
ammonia and fined it $30; OSHA could have imposed a fine
of as much as $1,000. OSHA also cited the plant for violations
of respiratory protection standards, but did not issue a fine.
OSHA officials said the facility was not on their "National
Emphasis Plan" for inspections, because it was not a
manufacturer, had no record of a major accident, and the
Environmental Protection Agency did not consider it a major
risk.
CSB (Chemical Safety Board) recommendation for OSHA
(Occupational Safety and Health Administration)
 Develop and issue a Regional Emphasis Program for
Section (i) of the Explosives and Blasting Agent
standard, 29 CFR 1910.109(i), in appropriate regions
(such as Regions IV, VI, and VII) where fertilizer grade
ammonium nitrate facilities similar to the West
Fertilizer Company facility are prevalent. Establish a
minimum number of emphasis program inspections per
region for each fiscal year. Work with regional offices
to communicate information about the emphasis
program to potential inspection recipients.
PROCUREMENT FOR AN
ENGINEERING PROJECT

(CHAPTER 10 OF YOUR TEXT BOOK)

 THE MAIN ACTORS

FUND
CLIENT

PROCESS
CONSULTANT LICENSOR

EPC
OR
GENERAL
CONTRACTOR
 SOME LARGE EPC FIRMS

• Bechtel USA
• China Communication Construction China
• TECHNIP France
• Saipem Italy
• Fluor Corp. USA
• Hyundi S. Korea
• Samsung S. Korea
• Chiyoda Japan
• KBR USA
• Jacobs Engg. USA
• Toyo Engg. Japan
• China has many more large EPC firms for different
sectors
ENGINEERING PROCUREMENT CONSTRUCTION
 TOPICS FOR DISCUSSION

• a) Prequalification of vendors and contractors

Question : Whose responsibility is it? Client or EPC?

b) Preparation of bid documents

Question : Who should prepare?

c) Evaluation of prequalification applicants and

bid documents
Question : Who is qualified to evaluate? Who can
give the final decision?
 PREQUALIFICATION OF
VENDORS/CONTRACTORS
• Organization of the • Financial Status of
firm to be the firm:
prequalified: • Paid-up capital,
• Type of firm volume of business
• Key personnel • Audit reports
• Associate firms(if • Bankers letter of
needed) recommendation
 PREQUALIFICATION (CONTD.)

• Engineering • Work Experience:

Capability: • Past experience of
• Planning and similar work
Engineering • Details of past work
capability • Failure analyses
• Design capability available
• Current work load • Similar jobs at hand
• Fabrication facility(for • Certificates of earlier
vendors) clients regarding
• Delivery satisfactory work
• Training facility
 INQUIRY DOCUMENT FOR BIDS

• Inquiry documents may have to be prepared for

THREE types of works, viz.,

• a) Procurement of equipment (vendors for pipes,

vessels, heat exchangers, towers, etc.)

• b) Procurement of package units (water treatment

plant, power plants, ETP facility, etc. Specialized
manufacturers are involved)

• c) Procurement of services (EPC firms)

STANDARD INQUIRY DOCUMENTS

• Request for Proposal (RFP) Firms respond

and state their willingness to bid

Instruction to Bidders – 1) Tells them how to respond

2) State price, schedule
3) State validity of offer
4) Informs them evaluation
criteria
5) Firms state their experience
 BID DOCUMENTS (CONTD.)

• TECHNICAL DOCUMENTS :
• 6) Bid bond – Bank
guarantee • 1) Scope of work
• 7) Performance bond – • 2) Project design basis
Bank guarantee • 3) Construction work
• 8) Secrecy agreement • 4) Project schedule
• 9) General guarantees and • 5) Inspection and tests
warrantees • 6) Spare parts requirement
• 10) Schedule of prices and • 7) Shipping and packing
rates instruction
• 8) Work procedure
 HOW TO PREQUALIFY EPC FIRMS

• Scope of work for EPC : • Scope of work for

• Basic and Detailed Client :
Engineering : Process, • Process Licensing
Mechanical, Plant & Piping,
Instrument, Electric, Civil • Approval of Engineering
and Architectural Documents
Engineering. • Obtaining permits, import
• Procurement license, etc.
• Transportation : Shipping, • Custom duties, taxes
Customs, Inland Transport, • Provide personnel for start
• Construction, up, commissioning,
Commissioning, performance test.
Performance Tests, Training, • Supply of raw material,
etc. chemicals, utilities as per
agreement.
 CLIENT

Price
Evaluation
Proposal Criteria

Tech. Evaluation
Proposal Committee
EVALUATION OF PREQUALIFICATION
APPLICATION AND BIDS
Evaluation criteria and procedures should be
finalized by the client (sometimes with the help of
consultants) BEFORE the opening of applications
and bids.
Evaluation criteria will be different for services (e.g.
EPC/General Contractors) and goods (e.g.
suppliers, vendors, package item manufacturers,
etc.)
Bids may consist of TWO envelope system –
Technical Proposal and Price Proposal, or
composite type.
TECHNICAL OFFER (PROPOSAL) – ITEMS
FOR EVALUATION
• Capability of the bidding company (as in
prequalification document).
• Execution plan and schedule
• Compliance with codes, standards, etc.
• Transfer of Technology
• Guarantees and Warrantees
• Delivery schedule
• Spare parts

POINTS MAY BE GIVEN FOR EACH ASPECT OR MAY

BE JUST NOTED AS “QUALIFIED”
 PRICE OFFER (PROPOSAL) – ITEMS FOR
EVALUATION
Cost of goods and/or services
Cost of training, performance tests, etc.
Cost for spares
Any other costs

 OFFERS MAY BE TWO ENVELOPE SYSTEM IN

WHICH CASE THE TECHNICAL ENVELOPE WILL BE
OPENED FIRST – THE OFFERS MAY BE RANKED
ACCORDING TO POINTS OR NOTED AS EQUALLY
QUALIFIED
 CLARIFICATIONS DURING
EVALUATION

• Any exceptions/deviations proposed by

bidder
• Clarifications should be sought by client and
accepted
• Consumption figures regarding – Utilities,
Feed Stock, Consumables, Chemicals,
Catalysts, Resins, etc. should be established
as FIRM figures
• Payment Schedule must be agreed to
between the bidding contractor and client
 EVALUATION TEAM

• What should be the composition of the

Evaluation Team?

• Technical Group
• Finance Group
• Corporate Group
• Legal Group
 DISCUSSION

• Are we clear about the relationship between the main

actors?
• Do we know the responsibilities of all the main actors
during the procurement process?
• Who should appoint the consultants?
• What should be done when none of the contractors
come up with bids which do not comply 100% with the
“instruction to bidders” prepared by the client?
• What happens when there is delay in decision making
by the client?
• What can be the cost of delay? Can we calculate the
cost?
REVIEW AND APPROVAL
OF ENGINEERING
DOCUMENTS

CHAPTER 11 OF YOUR TEXT

WHO PREPARES THE DOCUMENTS TO
BE REVIEWED?

Engineering Documents are prepared by :

Process Licensor
EPC firm/Engineering Contractor/General Contractor
Vendors
Package Unit Manufacturers

ALL SUCH DOCUMENTS ARE TO BE APPROVED

BY CLIENT ENGINEERS ( or Consultants?)
 WHAT ARE THE CONTENTS OF
ENGINEERING DOCUMENTS?
 Design Basis , Codes and Standards
 Flow Sheets, PFDs
 Material, Heat and Utilities Balances
 P & I Diagrams, Piping Diagrams, etc.
 Plot Plan/ Plant Layout
 Equipment List, Data Sheets and Drawings
 Civil Engineering Design and Underground
Construction
 All Instruction Manuals : Performance Test,
Operation, Safety, Quality Control, etc.
 FLOWSHEETS

Things to be noted :
1. Estimated pressure drops, leakages, gas composition
2. Difference between expected and guaranteed values
3. Metering inaccuracies and others
Review Methods:
1. Check streams for correct sequence
2. Check material balance
3. Check process conditions with process description
4. Check equipment with given Equipment List
5. Check guaranteed consumption figures
 PIPING & INSTRUMENTATION
DIAGRAMS (P&ID)
Basically it is an extended process flowsheet with
valves, fittings, instruments, etc.
1. Piping design and material specification
2. Continuity check
3. Controls : Instruments for Start ups and Shut downs,
Equipment and Catalyst performance, Location of
Control Panels & sampling points, By passes on
control valves, Alarm Systems
4. Electrical
5. Maintenance: Blocking, Venting, Draining,
Purging, Cleaning, Change of catalysts/packings
 PLOT PLAN/PLANT LAYOUT

CHECK FOR THE FOLLOWING:

1. Ease of access during construction, operation and
maintenance (including overhead and
underground pipes and cables)
2. Hazardous areas identification
3. Location of rotary m/c, stacks/flares, effluent,
control room, offices, EMERGENCY EXITS, space for
expansion
4. Easy view of plant from control room
 EQUIPMENT DATA SHEETS AND
DRAWINGS
CHECK:
1. Design data used
2. Codes and standards
3. Material of construction (corrosion aspects)
4. Surface treatment
5. Heat Treatment and stress relief
6. Instrument connections
7. Means of access to vessels
8. Inspection needs
9. Insulation
 DISCUSSION
1. Local engineering personnel MUST be
involved in the process
2. For externally funded projects consultants
appointed by aid agencies should not
have the final say!
3. Technology transfer to local personnel
should be a continuous process and held
very important throughout the process of
process design, plant construction,
commissioning, start ups and operation
including maintenance.
THE VENDORS
CHAPTER 14 OF TEXT
 IMPORTANCE OF VENDORS

• Vendors have very important role to play in :

1. Design
2. Manufacture
3. Workmanship
4. Warranty
5. Delivery Schedule
6. After-sales Service
7. Trouble Shooting
 NATURE OF VENDORS

• Mostly located in industrialized countries

• For a process plant a number of vendors are
required
• Vendors are specialized entities : Say, Heat
Exchangers, Pressure Vessels, Towers, etc.
• Package suppliers : Water Treatment, Power
supply, Cooling Tower, Boiler, Filtration units,
Clarifiers, etc.
• Vendors undertake orders under “TURN KEY”
contracts
 SCOPE OF SUPPLY OF A VENDOR

• Scope of Work: • Scope of

1. Engineering Composition of
program Equipment:
2. Fabrication 1. Details of actual
3. Quality Assurance hardware
4. Shipment, etc. 2. Other ancillaries
required for the
hardware to
function
EXAMPLE OF A HEAT EXCHANGER

1. Design, Detailed Design, Strength calculation

2. Working Drawings, Fabrication, Assembling,
Materials procurement, Welding, etc.
3. Quality Assurance (who will do it?)
4. Seaworthy packing
5. On site erection
6. Performance Test
7. Trouble shooting and maintenance
EXAMPLE OF ROTARY EQUIPMENT

1. Utilities consumption data

2. Performance guarantees
3. Critical speed analysis
4. Torsional analysis
5. Performance curves
6. Specification of motor or steam
turbine
 DEPARTMENTS IN VENDORS
ORGANIZATION

 EngineeringDepartment
Quality Assurance
Procurement
Manufacturing/Fabrication
Production control
NEGOTIATING A
CONTRACT
CHAPTER 16 OF TEXT
 TYPES OF CONTRACT

1. Target price contract

2. Lump sum turnkey contract (LSTK)
3. Cost plus a lump sum contract
4. Cost plus a fixed fee
5. Cost plus a percentage of fee contract
6. Unit-price contract
7. Guaranteed maximum contract
 SELECTING THE APPROPRIATE
CONTRACT DEPENDS ON:
• Clients’ technological capability
• Urgency of work
• Client’s degree of participation in procurement
• Funding arrangement
• Process licensing and know-how acquisition
• Client’s capability for review and approval of
engineering activities
• Client’s confidence in contractor
• Whether the contractor has the sole responsibility for
project performance
 WHICH TYPE IS APPROPRIATE FOR
BANGLADESH?

 LSTK ?
Cost plus fee (ZFCL and CUFL)

Problems in our country:

Delay in Implementation
Delay in Government approval
Currency fluctuation
Cost overrun, etc.
CONTENTS OF CONTRACT DOCUMENT

1. The contract paper : Responsibilities

of parties, Terms of payment,
warranty, Liquidated damage, Force
majeure, Termination etc.
2. Appendices : Technical
specifications, Procurement
procedure, Fund disbursement,
Insurance, Shipping, etc.
 SPECIALISTS NEEDED TO DRAFT
CONTRACT AND TEAM FOR NEGOTIATION

1. Legal
2. Engineering and Technological
3. Finance and accounts
4. Funding agencies
5. Government (Labor,
Env.,Customs, etc.)
6. Clients own specialists
 DISCUSSION ISSUES DURING
CONTRACT NEGOTIATION
• Scope of work • Utilization of local
resources
• Payment terms
• Transfer of
• Liquidated damage technology
• Laws and arbitration • Different procedures
• Force majeure • Approved vendors
• List of critical items
• Warranty,
Guarantee • Subcontracting
• Effective date of
• Performance contract
guarantee
 WE SHOULD AVOID

• No inexperienced team member

• No non-assertive negotiator
• Do not show your desperation
• Do not be over friendly
• Do not try to humiliate the other
side
• Do not shout or loose temper!!
INSPECTION

CHAPTER 13 OF TEXT
 WHY AND WHAT TO INSPECT ?

• Why Inspect ?
To make sure engineering requirements have
been complied with.
What to Inspect ?
(1) Plant Equipment and Materials
(2) Compliance with accepted Codes and
Standards
(3) Ensure that correct tests have been
undertaken
(4) Ensure safety requirements have been
complied with
(5) Vendor’s fabrication procedure
 WHEN TO INSPECT ?

1) During design – Safety issues –

HAZOP, HAZAN, etc.
2) During fabrication at vendors’ facility
3) Pre-shipment Inspection
4) During construction
5) During regular plant maintenance
CASES STUDIES OF FAILURE TO INSPECT

 Ghorashal Fertilizer Factory Control

Room Explosion, September 11, 1974
(A new plant)
 Bhopal MIC tank leak, December 3,
1984 (An old plant)
 Stripper failure of Ghorashal Fertilizer
Factory, June 20, 1991 (During start up
of expanded plant)
 GHORASHAL FACTORY CONTROL
ROOM EXPLOSION
• Explosion in control room destroyed it totally
• Several engineers and technologists were killed in
the control room
• Severe burn victims
• QUESTION:
(1) What is there to explode in a control room?
(2) Was it an act of sabotage?
(3) Was there an explosive mixture of gases in
the control room?
But in a control room the only gas present is just AIR!
 THE DESIGN FAULT

• How could natural gas enter the atmosphere of

control room?
• Was there any piping arrangement out side which
could possibly carry natural gas to the control
room?
• Any possibility of operator’s fault in allowing natural
gas to flow along with instrument air inside the
control room?
• What is the explosive mixture of Air and Natural gas
(Methane)?
THE BHOPAL TRAGEDY
 EXTENT OF DISASTER

• About 20,000 •Greatest

have died industrial
• About 120,000
disaster in
severely
affected and history
injured
 THE BHOPAL PLANT

• The UNION CARBIDE plant in Bhopal produced

“Sevin” as insecticide.
• To produce “Sevin”, Methyl Iso Cyanate (MIC) is
produced as an intermediate product.
• MIC is highly toxic and even small quantities can be
fatal.
• Large quantities of MIC was stored in an
underground steel tank.
• Many safety features were incorporated to prevent
rise of Temperature, Pressure, leakage,
contamination with water, etc.
 GHORASAL ACCIDENT 1991

• In 1991 the Ghorasal Fertilizer Factory was

undergoing expansion incorporating the ACES
process developed by TOYO ENGINEERING of
Japan
• The construction of expanded facility was
completed in June 1991
• The newly expanded plant was undergoing start up
when on June 20, 1991 an explosion occurred
• The Carbon Dioxide stripper exploded and the
resulting hot fluid at high pressure entered the
Control Room and caused death and injury
 CAUSE OF THE STRIPPER FAILURE

• The Carbon Dioxide stripper is built like a vertical

heat exchanger
• The cylindrical body has hemispherical ends
welded to it at two ends
• In order to with stand high pressure (at high
temperature) the stripper is fabricated with 78mm
thick metal sheet
• We found that the bottom hemispherical end had
separated from the main cylindrical body
• The welded joint had failed
 WHO WAS AT FAULT?

• The stripper was fabricated by OLMI of Italy

• The welding was defective and could not
withstand high pressure
• OLMI was not an approved vendor, yet the
GC Toyo had ordered the equipment from
them
• The inspection was done by a renowned
third party
• The inspection was not right
 ENGINEERING SPECIFICATIONS FOR
INSPECTION AND TESTS
• General Inspection:
• The procedure outlines inspection by vendors as well as
third party inspectors/surveyors. A list of certificates are to
be are to be submitted to the client
• Material test cert., Heat Treatment cert., radiographic tests
• Compliance cert. of third party
• Origin of materials, parts cert.
• Reports of any troubles during tests
Third Party Inspection:
• Lloyd’s Register
• Bureau Veritas
• Societe Generale de Survellance
• Japan Machinery and Metal Inspection Institute,etc.
SCOPE OF INSPECTION AND TESTS

1. Stationary Equipments: Pressure

Vessels, Heat Exchangers, Towers,
etc.
2. Rotary Equipments: Pumps, Turbines,
Compressors and Engines
3. Witnessing of tests by client or
representative (Third Party). This is in
addition to Vendor’s inspection and
tests.
PERFORMANCE TESTS OF
THE PLANT
CHAPTER 10 OF YOUR TEXT
 WHY PERFORMANCE TEST?

• Before accepting the plant from the contractor the

client wants to make sure that all the design criteria
have been met
• After the Performance Test, if the plant is accepted
by the client, the Bank Guarantee or the
“Performance BOND” will be released by the client
• After the performance test, if every thing goes well,
the Client will formally ACCEPT the plant from the
Contractor
 3 TYPES OF PERFORMANCE TESTS

• MECHANICAL COMPLETION TEST

• FUNCTIONAL TESTS FOR INDIVIDUAL

EQUIPMENT AND PACKAGE UNITS

• PERFORMANCE TEST FOR THE WHOLE PLANT

 MECHANICAL COMPLETION TEST

• Catalyst/Resin Charging in reactors

• Pressure tests
• Electrical tests
• Initial running (independent of rest of the plant – the
plant is not on production)
The individual equipment may be designed for HIGHER
throughput rates than which would be required for 100%
production of the whole plant
Thus: Water supply – 150%, Cooling Tower – 120%,
Compressor – 105-110%, Heat Exchanger – 105-125%, etc.
There are LONG term objectives for these tests also
 TESTS FOR INDIVIDUAL
EQUIPMENT/PACKAGE UNITS

• Design values for individual equipment/package

units may higher (OVERSIZED) than that for the
whole plant. This is done to ensure smooth operation
of the whole plant (in case of process “upsets”)

• These are supplied by separate vendors. Hence,

may be, the supplier/vendor are asked to test the
particular equipment/package unit. This aspect is to
be included in the contract for procurement
 TEST FOR INDIVIDUAL
EQUIPMENT/PACKAGE UNIT (CONTD.)
• The vendor must agree to conduct the test in the
procurement contract : follow procedures as given
in ASME, ASTM, AIChE, API, etc.
• P&I diagrams should show how instruments and
measuring devices are to be incorporated around
each equipment so that the tests may be performed
• Measurement of process variables
• Physical and chemical properties of involved
species should be known
• 3 types of STEADY STATE: Hydrodynamic, Thermal,
Mass transfer – to be established
 PERFORMANCE TEST OF THE WHOLE
PLANT
• Who carries out the plant performance test?
General Contractor or Client or a Third Party?
• Who should be present during these tests?
(1) Client
(2) General Contractor (EPC)
(3) Process Licensor
(4) Vendors

Who should actually operate the plant during the

test?
Under whose direction?
 WHAT IS TO BE TESTED? FOR HOW
LONG?
• Duration of Test
• Test for :PRODUCT QUALITY, PLANT CAPACITY, UTILITY
CONSUMPTION
• Methods of : MEASUREMENT, TOLERANCE,
SUPERVISION
• The REFERENCE DAY is to be noted. Design basis was
set using weather conditions in a different country.
The performance test is carried out in a Bangladeshi
summer day. WHAT WILL HAPPEN?
 WHAT ELSE TO BE TESTED?

• Plant emergency shutdown system

• Individual emergency shutdown systems

• Artificial plant upsets are created to test

reliability and operability during emergency
 BANGLADESH EXPERIENCE

• General Contractors leaving the plant site

without completing the performance test,
e.g., ZFCL (GC – Foster Wheeler UK)
• Contractors raise questions regarding design
basis originally given by the Bangladeshi
Client
• Sometimes the contractor does not include
the procedure for conducting the
performance test. Bangladeshi Client should
insist that these are included.
 What you have learnt
AND
What you can do after
ChE 407
A QUICK SUMMARY OF TOPICS
DISCUSSED IN THE PREVIOUS
LECTURES
Who are the main actors in building a
chemical process plant?

 Client
 EPC
 Process Licensor
 Consultant
 Funding/ Donor Agency
Why Prequalify bidders?

 Why restrict the number of bidders?

 Are you promoting monopoly?
 Are you ensuring quality?
 Do you want to avoid extra work/hassle
for examining too many bidders?
 Is it ok in our country?
 Can you do it on your own now?
Qualifications for Bidders

Organization – when
Which

and where it was
formed?

qualifications 

Financial status?
Engineering/ Working
are most 
capability?
Experience?

important for 

Must be Bangladeshi?
Bangladesh
experience?
our country?
Inquiry Documents for Bids

 What are the different  Procurement of Equipment

means...................................
Groups of Inquiry ...........................................
Documents?  Services
 For Equipment(for means...................................
whom?) ...........................................
 For Services(for  Package Units
whom?) means...................................
 For Package ...........................................

Units(which units?)  Can you prepare a REQUEST FOR

PEOPOSAL?
 Can you prepare INSTRUCTION TO
BIDDERS?
 Study (pp112-117)
A “PERFECT BID” as per your
Instructions

Can you get a  For which items it is

perhaps possible to get a
“PERFECT” “PERFECT” bid?
 For some items it may
bid? not be possible. WHY?
 What shall you do in such
a case?
Engineering Documents
 Go to page 124 of your
 Who prepares these textbook – a long list –
documents? “impossible” to remember all
of them !!
 Can you prepare some of
 Which items among the long
these documents? list have you worked on and
 What has been your prepared for your design
report?
experience while working in  Identify and prepare a list of
your Process Design your own.

Project (ChE 408)  What percentage of the real

life design work does your
report contain?