Special Focus Plant Design, Engineering and Construction

R. CHUANG and A. FAN, CTCI Corp., Taipei, Taiwan

Execution features of modularization projects

Due to growing global environmental job sites by design, and to categorize them ize detailed designs and save some room
awareness in recent decades, the petro- as module components and have them fab- for future adjustments on design changes
chemical industries have been seeking ricated or tested separately based on refin- due to specification alterations or owner
more cost-effective construction solu- ery process requirements and productivity. instructions. This period also provides the
tions. This initiative is an impetus to the Breaking project development into smaller procurement team with sufficient time to
adoption of modularization, which helps programs at the early planning stage allows develop robust material delivery plans to
to provide safer working environments, a variety of tasks to be conducted simulta- prioritize supplies based on urgency or
improve quality and secure firm schedul- neously in various locations. This shortens locations. Conversely, the construction
ing, as the prefabrication of modules is project duration, since fabrication, along team can focus more on setting up con-
usually performed offsite in independent with the assembly and testing of process struction plans and raising safety aware-
module fabrication yards to avoid inter- modules, can be performed in parallel with ness when commencing site activities.
ference with ongoing site activities. onsite activities. Other benefits include
While modularization provides a bet- better quality control, more efficient use Enhance fabrication safety and
ter solution for various issues regarding of materials, reduced safety risks, a smaller quality. Safety has always been the pri-
labor, budget or space, there are new as- field crew and less required space onsite. mary focus for every construction proj-
pects and criteria that must be consid- In addition, module preassembly units can ect, regardless of scale or properties. In
ered. Dealing with complex project in- be designed to accommodate specific loca- modularization projects, module fabrica-
terfaces is becoming more of a challenge, tions or limited spaces. Such a flexible work tion and preassembly are performed in
since modularization involves multiple scope provides owners the confidence to independent module yards that offer es-
tasks working in parallel throughout the take on any project where geographical or tablished and safe working environments.
world. In this case, modularization proj- climate conditions are far from ideal. The By employing pancake and deck stack-up
ect management involves more than just following is a further explanation of the ad- techniques, which is a typical module steel
creating work timetables and schedules, vantages of modularization. structure installation method, safety risks
managing and prioritizing construction can be reduced. This can also help prevent
work orders, and communicating with Improve project management flex- process errors from occurring and elimi-
clients and stakeholders. Coordination ibility. Modules for modularization proj- nate defects in fabricated products, thus
between multiple taskforces and project ects are fabricated offsite, allowing site ensuring quality.
locations becomes even more essential, development and foundations to proceed
and often requires more timely decisions simultaneously across countries and time Optimize plant facility configuration.
or mitigations than are required for con- zones (FIG. 1). Given that module fabrica- With modules being fabricated offsite, the
ventional construction projects. tion is a time-consuming process that usu- work onsite becomes simpler, as most of
This article will first introduce the ad- ally takes up nearly half of the entire proj- the remaining work involves underground
vantages of modularization—a trend in ect period, the engineering team can make activities such as piles, foundations or un-
today’s demanding petrochemical indus- good use of this fabrication period to final- derground piping. Proper module plan-
tries—before delving into planning strat-
egies. Using a mega-module project as Modularization project schedule timeline
an example, this article will discuss how
such projects are planned and executed, Design engineering Site development Module MC or Potential time savings
and procurement and foundations installation commissioning Project planning flexibility
along with typical challenges and how
decisions are made under various project
Module fabrication
execution scenarios.
ADVANTAGES OF Conventional stick-built project schedule timeline
MODULARIZATION Design engineering
Site development and construction
and procurement MC or commissioning
The concept of modularization is to
bring systematic integration to the systems
FIG. 1. Modularization vs. stick-built project schedule timeline.
that are originally intended to be installed at
Hydrocarbon Processing | JULY 2021 25
 Plant Design, Engineering and Construction

ning leads to better space utilization. This also helps improve work sequences and re- The mega-module project that will be
is a huge benefit from an owner’s point of source allocations throughout the project. discussed here is the world’s largest inland
view because the extra spaces saved can be petrochemical refinery plant in Texas. It is
used to install more facilities to improve High level of adaptability to various owned by a JV of two international oil and
future productivity. environmental conditions. Modu- gas companies that are looking to capital-
larization projects are less susceptible to ize on domestic shale gas resources and
Minimize the need for construction unfavorable climate or geographical con- supply. Once the plant begins operations,
labor onsite. Modularization showcases ditions since the process is performed in it is expected to produce millions of tons
the perfect solution for onsite labor short- independent module yards. In addition, per year of mono-ethylene glycol (MEG),
age, which has long been a bottleneck in they are highly adaptable to changes, al- along with thousands of local job oppor-
modern construction projects. By modu- lowing adjustments or modifications to tunities. The following will elaborate on
larizing most of the process-related systems module engineering designs, such as for the execution features of this mega-mod-
and equipment for preassembling and test- size and weight, structural reinforcement ule project from three aspects:
ing in the module yards, construction work and fixation, module layout, heat insula- 1. Project control and
hours can be significantly reduced. Such tion, and anti-corrosive or anti-rust coat- schedule planning
simplified site infrastructure configuration ing treatments as required on job sites. 2. Procurement and material
results in lower resource requirements for management
onsite labor and machinery, thus creating MEGA-MODULE PROJECT 3. Key highlights of module
a more spacious work environment. This EXECUTION: EXPERIENCE fabrication.
not only enhances safety and quality, but AND STRATEGIES
Project control and schedule plan-
ning. Successfully planning a modulariza-
Engineering Procurement Module fabrication Construction Handover
Steel structure
tion project depends on proper integra-
tion of work packages with engineering,
Engineering and Erection and hook-up procurement, fabrication and construc-
procurement-driven schedule tion. To achieve this goal, project control
Nozzle handover to piping aims to manage the following tasks:
Piping, instrumentation • The engineering team supports the
FRD/CRD and electrical construction sequence and schedule
Transportation
Equipment installation • Vendor-supplied equipment
Place order Manufacture remains on schedule
Transportation Fabrication and
• Materials are purchased and
construction-driven schedule delivered to support construction
Drawing issue
• Communication of specific work
tasks is improved throughout the
workforce—from the superintendent
FIG. 2. The FRD and CRD are the most important dates in a project schedule. level through the craft ranks

TABLE 1. Schedule level of detail

Level Engineering Procurement Fabrication Construction
Level 1 Milestone—Overall
Model review LLE First cut Air permit(s)
Major drawing Critical materials Sail away MC Level 1
Level 2 Master project schedule—Discipline
Primary steel Static equipment Steel fabrication and assembly Foundation erection
Secondary steel Rotary equipment Piping fabrication and erection Piping fabrication and erection
ISO drawing IFC Package equipment E&I installation Module erection and hook-up
Electrical and instrumentation
(E&I) equipment
E&I bulk material
Level 3 EPC CPM network—Module and area
Module discipline Requisitions Module discipline Area discipline
Area discipline
Level 4 Work package
Engineering document index Equipment and material item Fabrication work package/deck Construction work package

26 JULY 2021 | HydrocarbonProcessing.com
 Plant Design, Engineering and Construction

• Constraints such as craft • Inspect or analyze materials, and construction tasks are performed
availability, material laydowns, scope, etc., before feeding back concurrently in various locations. The
scaffolding and approvals for to Level 3 and Level 3.5 fabrication challenge lies in selecting suppliers based
construction drawings are or construction schedules. on their high-value supplies and coun-
better managed Module steel structure pancake and deck tries—along with their logistics arrange-
• Work toward closeout and stack-up are critical to a modularization ments, which would greatly affect the
turnover is better controlled. project. Due to size and weight restraints, workforce in both the module fabrication
In a project, the fabrication required date equipment on each deck must be installed yards and construction job sites.
(FRD) and construction required date before the upper deck can be stacked. If Two main strategies were adopted in
(CRD) are of paramount importance. major equipment or equipment located at this mega-module project. The first was
These are the dates on which all engi- critical locations cannot be installed be- vendor pre-bidding. Pre-bidding meet-
neering drawings and material deliveries fore deck stack-up, then follow-up work ings were scheduled at early stages to
are based to meet the project’s fabrication will be delayed. In terms of schedule plan- introduce solicitation documents and
and erection requirements in the yard, as ning, very few differences exist between to finalize technical terms and project
well as the construction sequences onsite. modularization and stick-built projects requirements in exchange for merchan-
FRD/CRD planning includes the fol- from Level 1 to Level 3. The only differ- dise specifications from interested and
lowing steps (FIG. 2): ence is Level 4, where fabrication is con- prospective bidders. This process helped
• Identify the delivery dates trolled by each deck of the module (fab- expedite the technical review process of
of equipment, materials and rication work package) and procurement contractual and vendor documents. By
engineering deliverables is controlled by individual equipment and acquiring vendor data as early as possible,
• Monitor the delivery status material items on each deck. Schedule engineering design and follow-up work
to fulfill fabrication and levels are detailed in TABLE 1. could proceed smoothly.
construction requirements The second strategy was collaborating
• Obtain management approval Procurement and materials man- with Asian suppliers. The project teamed
for any CRD delays after the agement. Materials management is up with a mega-module fabrication yard
schedule engineer updates more complicated in modularization in China, which is a conceivable strategy,
the delivery schedule projects because numerous fabrication given that China is where most of the fab-

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Hydrocarbon Processing | JULY 2021  27
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 Plant Design, Engineering and Construction

rication work is concentrated. Therefore, Weight control management starts will determine the accessibility of material
suppliers from local or adjacent countries from the input of engineering data into coordination and flexibility of transporta-
with high marketing competency (e.g., modeling software based on several de- tion planning. It would also help rule out
Taiwan, Japan, Malaysia, India, Thailand sign factors. Changes in these variables regions with unpleasant environmental
and Korea) were listed as strong candi- can affect the quantities and locations in conditions that may disrupt or even jeop-
dates (TABLE 2). Shorter shipping periods the module layout. The data can be up- ardize works. A yard’s past achievements
are advantageous for making solid mate- dated accordingly in the modeling soft- would serve as strong evidence for its per-
rial delivery plans based on fabrication ware and recorded in the weight control formance and capability and can be used
and construction priorities. In addition, report, which tracks changes in the mod- as a reference for decision making. In ad-
shorter shipping periods can also help ule’s weight, size and gravity from the dition, choosing a module yard located in
avoid construction delays due to unex- early project planning period to module free-trade or tax-free zones will be benefi-
pected material damage and/or design completion and sail-away. This provides a cial, as custom tariffs can be exempted.
changes by calling up nearby suppliers to solid input basis for arranging transporta-
cover material shortages. tion and site construction planning. Takeaway. In many aspects, modulariza-
Choosing a module yard is another key tion gets the best out of the traditional
Module fabrication highlights. To highlight. The basic requirement is ade- stick-built construction method, and of-
increase efficiency, modularization proj- quate fabrication working space and work- fers the advantages of improving safety,
ect planning involves engineering design force resources. Other considerations quality, resource utilization and manage-
and fabrication working in parallel. For include the yard’s geographical location, ability (TABLE 3). Additionally, it sets a
example, steel structure shop drawings past achievements, affiliated facilities perfect example of how teamwork from
and first cuts in the module yard can be (including indoor/outdoor blasting and various specializations can help speed up
initiated following the completion of painting areas), warehousing, and stor- a project.
primary drawings. This makes weight age and quay capacities. Facility capacity
control management one of the key high- will directly impact the yard’s productivity ROGER CHUANG is a Project
lights in the project. and stability, while geographical location Manager for CTCI Corp.’s
hydrocarbon business operations.
He has more than 15 yr of experience
TABLE 2. Primary high-value supplies from Asian countries in the refining and petrochemical
industries. Mr. Chuang earned
Country High-value supplies an MEng degree in civil engineering
China Pipes, fittings, flanges, pressure vessels, cables and electrical equipment and construction management from National Chiao
Tung University, Taiwan.
India Pumps and noise enclosures
ALEX FAN is a Project Control
Japan Compressors and heat transfer equipment Engineer for CTCI Corp.’s
Korea Reactors, fittings, flanges, high-pressure vessels and heat transfer equipment hydrocarbon business operations.
He has 5 yr of experience in the
Malaysia Pressure vessels, cables and electrical equipment refining and petrochemical
Taiwan Carbon steel/stainless-steel (CS/SS) plates, CS/SS welded pipes, pressure vessels, industries. Mr. Fan earned an
instruments, cables and electrical equipment MEng degree in railway engineering
and a BS degree in civil engineering from National
Thailand Pressure vessels and electrical equipment Taiwan University, Taiwan.

TABLE 3. Modularization project execution cost-saving initiatives

Expected benefits
Design safety Reduced site Cost Schedule
Item description and efficiency workforce savings critical
Leverage suppliers from emerging markets X X X
Fully utilize JV partners’ frame agreement X X
Process modules simultaneously X X X
Install column internals at fabrication yard X X X
Leverage modular experienced labor X X
Maximize fabrication yard pre-commissioning/commissioning X X
Utilize one integrated, vertical subcontractor X
Maximize utilization of module offloading facility (MOF) X
and self-propelled modular transporter (SPMT)
Maximize precast and preassembly offsite X X X X
Move the temporary construction facility to the construction worksite X X
Optimize large-scale crane utilization X X
Minimize scaffolding erection X X X X

28 JULY 2021 | HydrocarbonProcessing.com