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26 March 2012

Plant Lifetime Management & Lifetime Extension


DNV Seminar for the process industry
Dr Frank Candreva Warshaw - 20 March 2012

What is ageing ?

What is the impact of ageing on plant performance ?

? Link between Major Accidents & Ageing Plants

? Options to manage ageing plants

BIP Ageing Scorecard

Criticality Screening

Lifetime Extension
Plant Lifetime management

Plant Lifetime Management & Lifetime Extension


INTRO POSITIONING PROBLEMSETTING POSSIBILITIES PROPOSAL PLANNING FORWARD
Dr Frank Candreva Warshaw - 20 March 2012

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Opening How relevant is ageing of plants /assets for you ?

What are your key challenges ?

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Introduction
Definitions Managing Ageing Today

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What is ageing?
Ageing is not about how old your equipment is; its about its condition and how its changing over time
(Petroleum Safety Authority, 2008)

Ageing is a process of degradation related to the progression of time and/or the use of the facility and the systems related to the facility
(OLF, 2008)

Ageing plant is a plant which is, or may be, no longer considered fully fit for purpose due to age related deterioration in its integrity or functional performance More than 4500 high-tier Seveso plants in Europe are subject to ageing
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INTRO
The potential degradation of plant and equipment due to age-related mechanisms such as corrosion, erosion and fatigue is becoming a key issue at worldwide scale, but most particularly in the USA, Europe and Scandinavia which have built a huge number of high-risk companies after World War II. These companies are now older than 50 years and ageing is an undeniable fact.

Nevertheless, ageing issues are seldom incorporated in an integrated HSE Management System They are not consistently traceable / retrievable as causal factor in incident investigations.

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Positioning
Stakeholders Offshore + Nuclear vs onshore Legal Framework
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Stakeholders Map

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Ageing assets mgt in offshore/nuclear facilities


decommissionning lifetime extension

AMR 1 Integrity level

AMR 2

AMR 3

AMR = Ageing Management Review

best practice integrity level

alarp integrity level


time

25 yrs
design lifetime

25+x yrs
extended lifetime

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Managing ageing assets in the process industry

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Legal framework (1/3) Focus by inspection authorities

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Legal framework (2/3) Focus by inspection authorities

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Legal framework (3/3) Focus by inspection authorities

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Problemsetting
Major accidents trends Cost of ageing

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Problem setting - Operating safely with ageing assets


Onshore world Seveso facilities ? MARS Accident Database (EU Seveso incidents): Approx. 60% of major LOC incidents are related to technical integrity, and, of those LOC incidents 50 % have ageing as a contributory factor. Estimated consequences :11 lives, 183 injuries and > 170 million of economic loss RIDDOR Database (UK): Between 1996 and 2008 : 173 LOC reported incidents can be attributed to ageing plant mechanisms (= underestimated because of uncertainties to allocate events to ageing phenomena) Conclusion: Plant ageing does constitute a real threat to health & safety performance of hazardous installations. This applies to onshore as well as offshore facilities.

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Sense of urgency
1. Trigger point : Trend of Major Accidents happening in the process industry 2. Conclusions from the HSE Plant Ageing Study : Overall it can be concluded that plant ageing does constitute a threat to health and safety performance of hazardous installations onshore. Within the uncertainties of the review conducted a reasonable statement to describe the size of the ageing issue is that approximately 60% of major hazard loss of containment incidents are related to technical integrity and, of those, 50% have ageing as a contributory factor. It therefore concluded that plant ageing mechanisms are a significant issue in terms of major hazard accidents.

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Cost of ageing plants

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Possibilities
No change Risk Based Inspection & RCM Plant Lifetime Management
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Option 1 -Managing ageing assets in the process industry

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What are the options to manage ageing plants?


OPTION 1 - BUSINESS AS USUAL

Rejuvenation of specified assets via periodic turnarounds Compliance driven inspections Experience based THREATS: Increasing costs of production Increasing Major Accident Potential No insight on remaining plant lifetime and inadequate priorisation process for future investments Surprises may be waiting on the corner

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Option 2 Risk Based Inspection


Service Area Service Line Asset Risk management Maintenance & Inspection

prioritize equipment for inspection based on risk Challenge prioritize inspection without compromising on safety identify inspection techniques and level of detail

rank equipment within scope according to risk DNVs approach focus on high risk items plan inspections based on risk acceptance criteria apply API581 using Orbit Onshore software

up-to-date (living) inspection plan Value to the client demonstrated value of planned inspections accurate inspection data management tool

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Option 3 Plant Lifetime Management


OPTION 1 ; BUSINESS AS USUAL Rejuvenation of specified assets via periodic turnarounds THREATS: Increasing costs of production Increasing Major Accident Potential No insight on remaining plant lifetime and inadequate priorisation process for future investments Surprises may be waiting on the corner OPTION 2 : APPLYING RISK-BASED INSPECTIONS & RCM TECHNIQUES + TURNAROUNDS Rejuvenation of specified assets via periodic turnarounds More focused inspections & better insight on remaining lifetime of specified equipment THREATS: Increasing costs of production & Increasing Major Accident Potential No insight on remaining plant lifetime Limited to specified equipment e.g. mainly limited to vessels, tanks , eventually rotating , but no comprehensive approach for entire range of assets Limited insight on future investments at plant level & surprises may be waiting on the corner OPTION 3 : PLANT LIFETIME MANAGEMENT Clear insight of actual overall plant status Comprehensive life cycle based approach / all assets Criticality screening and risk ranking of assets Insight & transparency of future investments Remaining Plant Lifetime Assessment & Detailed Asset Life Plans Less surprises
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Our Proposal
Plant Lifetime Management

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Plant & Assets Life Cycle

Project phases / DNV Energy deliveries

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Plant Lifetime Assessment / Approach

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Mapping the impact of ageing assets at site level


CONDITION OF ASSETS Corrosion status Leakage rate & trending Deterioration Trending in reduced plant or unit availability Reliability of safety critical assets / instrumentation Trending in MTBF
AVAILABILITY & RELIABILITY MAINTENANCE & INSPECTION

Maintenance budget trending Trending in MTTR / MTBM Trending in % overdue regulatory inspections Trending in temporary repairs

HAZARD POTENTIAL

Status of knowledge about design, operation & deterioration mechanisms % Completion of action items from HAZOPs / PHAs Trending of reported incidents (LOCs)
OPERATIONAL INTEGRITY

Trends in process excursions from normal operating envelope Use of safety critical equipment in a failed state
ENVIRONMENTAL EFFICIENCY

Trend in energy costs per unit of production / per headcount

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PLM Methodology /1
1. Initial BIP Scorecard

Data collection & Condition assessment


Plant & Assets condition 3

Criticality screening
Environmental efficiency

2 Assets availability & reliability 1

Risk assessment & ranking Remaining lifetime of critical assets

Operational integrity

Maintenance and inspection

Hazard potential & PSM

2. Data collection

Mitigation Measures for Plant Lifetime Extension

3. Scope definition : plant unit equipment level 4. Condition assessment

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Business Impact Potential Sample of Ageing Indicators


Plant and assets condition Level of damage observed & potential for deterioration as from inspections and site tour Corrosion status and corrosion allowance Leakage rate (small leaks of hazardous materials) and trending Welding status and joint design (from excellent level to old / superseded standards & codes) Good Housekeeping (including steam leaks)
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Plant and assets availability & reliability Level of repeated assets breakdown Trend of unscheduled unit or plant breakdowns / unplanned stops Trending in % availability of plant Trending in % availability of system / unit Trending in % reliability of assets MTBF (Mean-Time-Between-Failure) Trending in % of overdue RCA (Root Cause Analysis) actions from reliability assessments

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Business Impact Potential BIP Scorecard

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PLM - Methodology / 2
Criticality Screening Criteria Business Impact Area

Data collection & Condition assessment Criticality screening Risk assessment & ranking Remaining lifetime of critical assets Mitigation Measures for Plant Lifetime Extension

Knowledge status
Asset condition Functionality Availability/Reliability Hazard Potential Maintenance/Inspection Spare parts availability Personal health & safety (PES) Process safety (PRS) Customer & product quality (CPQ) Environment and energy efficiency (EEF) Production downtime (PDT) Financial (FIN)

The criticality screening is consequence based

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Criticality screening
Unit A Unit B Unit C Unit D Knowledge status Asset condition Functionality Availability/Reliability Unit C Unit D Unit A Unit B

Unit E

Hazard Potential Maintenance/Inspection Spare parts availability Unit E

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Scope the study

component

equipment

system
Plant structure

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PLM - Methodology / 3
Data collection & Condition assessment Criticality screening Risk assessment & ranking Remaining lifetime of critical assets Mitigation Measures for Plant Lifetime Extension

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Risk Assessment & Risk Ranking


For each critical unit (Unit A & D) representative LOC scenarios are identified and the accompanying risk is evaluated with probability of failure , with respect to People Environment Unit C Unit D Unit D Unit A Unit E Production

Unit A Unit B

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PLM Methodology / 4
Life Extension Evaluation
Data collection & Condition assessment Criticality screening Risk assessment & ranking Remaining lifetime of critical assets Mitigation Measures for Plant Lifetime Extension
Detailed life extension study of equipment will be based on consequence of failure for critical assets with a high risk ranking. The study includes: - Status of ageing and history of equipment wrt. failures and maintenance - Maintenance study for the last 5-10 years (trends, failures) - Check that likely degradation mechanisms are part of inspection plans - Check maintenance plan - Check slow degradation that could lead to large overhaul - Check vendor support and spare part availability - Define changes in operation condition based on the production scenario - Predict how equipment will perform in changed operation Output : Estimation of remaining lifetime of critical assets conditions
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PLM Methodology / 5
Data collection & Condition assessment Criticality screening Risk assessment & ranking Remaining lifetime of critical assets Mitigation Measures for Plant Lifetime Extension
Output : Extented Lifetime of plant or targeted critical assets & detailed Asset Lifetime Plans
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Initial Plant Assessment Initial BIP Scorecard - A

Plant Assessment after upgrade Estimated BIP Scorecard - B

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Concluding Remarks

PLANT LIFETIME MANAGEMENT FACILITATES DECISIONMAKING


- To extend lifetime or to relocate the plant - By Criticality Screening & Risk Ranking Helping in doing the right things By providing improved transparency of prioritised investment efforts along the entire assets life cycle

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Planning Forward
Proactively Managing Ageing

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Shift from Reactive to Proactive Approach to Manage Ageing


Conclusions from the HSE Study Management of Ageing RR912 (2012) To effectively manage ageing and ensure that assets operate efficiently and safely requires a proactive approach with a thorough understanding of asset ageing mechanisms and condition and the ways in which assets interact (with the working environment). Competence and organisation of the people responsible for asset management & knowledge management are the keys to ensuring that this understanding of current & predicted asset conditions is used when making asset management decisions. Ageing affects all assets in a plant, therefore asset managers should manage ageing of all assets, but with a Special Focus on Safety & Production Critical Assets with a high consequence of failure. The HSE report provides a framework of the competencies and processes required to proactively manage ageing plants.
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Ageing assets in the process industry Preparing a JIP / 2012


Opportunity and incentive There are no validated generally accepted methods for evaluating the impact of ageing to rotating machinery. This Joint Industry Project will serve to develop a sound methodology for analysis, inspection & maintenance and decisionmaking when addressing degradation mechanisms and their business impact in ageing process plants. Scope of work and deliverables - Scope of work oriented to large rotating equipment (pumps, turbines and compressors > 0.5 MW) and pipelines within a process plant. - Deliverables: a Recommended Practice for Inspection & Maintenance including Remaining Lifetime Assessment for large rotating machinery. Optionally, the JIP would also address ageing phenomena related to pipelines - Validation of approach & methodology including piloting is foreseen for a representative process plant n Europe Potential Value / Customer benefit A cost-effective risk-based methodology to deal with ageing assets leading to improved performance and predictability of remaining lifetime. Better insight in ageing factors and their impact on overall business performance.
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Ageing is not about how old your equipment is; its about its condition and how its changing over time (Petroleum Safety Authority, 2008)

Contact person frank.candreva@ dnv.com Tel. +32 473 99 35 55 DNV Solutions Belgium

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Concluding Remarks
Expectations met ? Interest in a Joint Industry Project ? Remaining questions issues to discuss ?

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Safeguarding life, property and the environment


www.dnv.com

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