6 replies to this topic

[chandru]

Hi all,

If a licensor is giving initial technical proposal (example: Hydrotreating package).

In the proposal, they have provided overall mass balance, process description, PFD, equipment list with preliminary sizes, utility requirement, battery limit condition and few references where the package is executed.

I can't comment of process, operating condition & catalyst used, as that is given by the licensor based on there research & experence.

So i would like to know what i have to check/review in the technical proposal submitted by licensor.

Thanks in advance,

[gegio1960]

Mainly you have to check the consistency of the technical proposal with your Basis of Design:
- feed conditions & qualities
- property conditions & quality specifications
- utility conditions
- environmental data

[Dacs]

Are you doing an evaluation for bidding to execute EPC?

Just to add on what gegio1960 has mentioned, you'd probably want to check for the overall design and anticipate anything that may cause an increase in cost down the line (maybe some equipment the licensor has not mentioned in particular in their package).

Normally, I'd do some spot checks such as confirming design conditions with respect to design specs against their stated specs or verifying line sizes and pump capacity/TDH by doing hydraulics, but it depends really on how detailed you wanna check their design.

Aside from that, you'd normally also carry some value engineering that may reduce your CAPEX/OPEX or both.

[Technical Bard]

A skilled and competent engineer in the field of the package can check a lot of details, even from the preliminary proposal. In addition to the items listed by others, you should be able to check LHSV, operating pressure and temperature (compared to the goals of the process), sizing of the major equipment (fired equipment, compressors, major pumps, etc.

My experience is that some licensors are better at the "details" than others. There are some I trust to size reactors and give me an overall material balance. Others I trust to size a lot of the equipment, set the overall pressure profile, etc.

[Pilesar]

Some projects fail due to mistakes in the underlying design concept, others fail due to mistakes in organization and project management. You will not get a pat on the back if you select what seems to be the cheapest, most efficient process design and it never works correctly. If you are not an expert in the process, it helps to compare technical proposals from competing companies. Here are a few things to check which may help you start your own list:

Does the proposal meet the project specifications for capacity?
What is the product purity?
Are there any exceptions to specifications?
Look for energy efficiency. Is the quoted energy reasonable?
How many operators will it take to run the process?
What are the maintenance skills required?
What is the expected annual cost?
What is the expected reliability?
Are there adequate spares provided for equipment?
Look particularly at critical equipment that would require a long lead time to replace, such as compressors. Is this critical equipment operating in a robust range or is it being pushed to the edge of its limits?
Is all the equipment designed to industry standards?
Which equipment is not according to standards and why?
How do the operating conditions compare between proposals -- high pressures and high temperatures may require additional safety measures.
Are the operating hazards adequately addressed?
Are the materials of construction suitable?
Is there sufficient instrumentation to know what the process is doing at all times?
What are the noise levels?
Are the expected waste streams all accounted for?
Is there a successful track record for the licensor?
Is the process design successfully operated elsewhere?
Is the licensor financially sound?
How easy will it be to get proper government permits for the process?
Do all components balance in the supplied material balance?
Will the equipment fit into the land area you have available?
How much is not included in the proposal that will be an additional expense -- off-site storage, flare, electrical substation, water treatement, waste disposal, etc.
Is equipment spaced adequately for maintenance?
When is material completion of the project expected?
Is the process inherently stable? Can it be controlled?
What could go wrong during process operation?
Can the process be safely started and shut down?
Is technical assistance available and reasonable?
Are there proprietary catalysts or chemicals which may be difficult to procure in the future?
How experienced are the engineers who will be designing the process?
What are the project deliverables?
What are the process guarantees?
Can you be confident the process will work?

Edited by Pilesar, 08 October 2012 - 06:14 AM.

[chandru]

Thanks to all, for your reply.

-chandru

[tarafdar]

Hi Chandru,

Pilesar gives you a detailed advice.I like to add:

1)Provenness of the process & the critical equipments.(Using troublefree in other similar plants).
2)Code & standards followed.
3)Usage ratio for energy,utilities & chemicals.
4)2 years spare for critical equipments.
5)Warranty & guarentee.
6)Solid/liquid/gaseous emission.
7)Equipment design margin(Do you need more than 100%?).
8)The plant must run at 100% capacity throughout the year regarding utilities(summer,winter,monsoon).
9)Guarentee test run
10)Project implementation schedule.(From signing to hand over).
Thanks.