Sustaining energy performance

1. KBC/Petronas Technology Session
and Round Table Workshop
Proprietary Information
16-17th January 2018
Confidential Information
Sustaining Energy Performance Groupwide
MTaufikMokhtar
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2. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Overview of Presentation
• Background and Current Landscape
• PETRONAS Energy Journey
• Energy Target and Roadmap
 Learning from one of the OPUs - Key Success Factors
• Collaboration Areas for Improvement of Energy Performance
• Sustaining Energy Performance Groupwide
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3. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
BackgroundandCurrentLandscape
Open

4. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Energy is embedded in Cost of Operation
4
• With lower margin, Downstream is placing stronger emphasis to reduce Cost of Operations
(i.e. increase the efficiency). Savings achieved through energy efficiency improvement will
directly translate into plant bottomline
Cost of
Feed
Cost of
Operations
Revenue
Earnings*
* Ebitda
Cost of
Feed
Cost of
Operations
Revenue Earnings*
Upstream Downstream
Plant Focus
Throughpu
Plant Focus
Throughput
Efficiency
Energy cost
may contribute
up to 80% of
Cost of
Operations
THROUGHPUT
Efficiency
THROUGHPUT
EFFICIENCY

5. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
List of Challenges…
Confidential
Uncertainty in
Crude Oil
Prices
Rising Energy
Cost
Volume
Expansion –
SAMUR,
RAPID
New
Regulations –
Euro 5
Aging Assets
Sustaining
Energy Mgmt
System

6. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Crude OilPricesOver 10Years
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7. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Energy Pricesteadilyrisingdrives EnergyPerformance
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• Energy Price has increased by
more than 100% since 2002
• With increase of operating cost,
PETRONAS are forced to ensure
existing facilities are running
safely, reliably, and
efficiently
• Most PETRONAS OPUs generate
own power from internal COGEN
or Centralized Utility Facilities
owned by PETRONAS
Source: Suruhanjaya Tenaga Malaysia and Gas Malaysia

8. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
PETRONASEnergyJourney
Open

9. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
2011
Change of focus
by Business Unit
to Reliability and
Asset Integrity
GTS
restructuring and
ELMS section
dissolved.
Governance
roles taken up by
GHSE and DOD
 GTS provides
services on
Energy
Consulting
PETRONAS EnergyJourneycontinuesdespitechangesinOrganizationalStructure
MILESTONE
2005
Energy
Mgmt
team
was
formed
in GTS
2008
Achieved cost
saving of
RM187 Mil
Q1 2010
 PETRONAS
Restructuring
Nov 2010
 Governance
roles and
technical
services for
Downstream
OPUs remain at
GTS, ELMS
section.
 Upstream roles
taken up by
SWAT/UTS
2012
 Corporate
Sustainability
Council (CSC)
direction on
plant energy
performance
target.
 ELMS 2.0
rejuvenation
by GOE/ DOD
2013/14
 GOE operationalized
 ELMS 2.0 adoption
to Downstream and
G&P OPUs
2003
Embark on
Corporate
Energy
Reduction (5%
reduction)
2015/2017
• CACTUS
Project
• GOE
dissolved
• ELMS
governance
by DBE and
business
units
Confidential

10. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
EnergyTarget&Roadmap
Open

11. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
PETRONASEnergy Targetis to achieve EI of 100 by 2020.
Confidential
OPU specific targets
• Melaka Refinery: Reduction of EII by 5 points
• MLNG: Improvement of Plant Thermal Efficiency
by 1%
EI =
𝐴𝑐𝑡𝑢𝑎𝑙 𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑐 𝐸𝑛𝑒𝑟𝑔𝑦
𝐷𝑒𝑠𝑖𝑔𝑛 𝑜𝑟 𝐵𝑒𝑠𝑡 𝐴𝑐ℎ𝑖𝑒𝑣𝑒𝑑 𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑐 𝐸𝑛𝑒𝑟𝑔𝑦
Supported by ELMS v2.0

12. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Case Study 1: OPUA: Sustained Energy Performance
Confidential
Plant Wide Energy
Assessment
Value Improvement
Program (Plant A)
(2009)
• Identified potential for Energy
improvement
Flare Reduction And
Recovery
Strategic Energy
Review
(2010)
• Flare Reduction and Recovery (FRR) Value Identified: RM 20 Mil/yr (Operational)
• Strategic Energy Review (SER) Value Identified: RM 48 Mil/yr
• Value Realised from FRR & SER: 10 Mil/yr
Major Gas Recovery
Feasibility Study
(2011)
• Identified project from FRR study
• Potential of >RM100 Mil/yr
• Commissioned in 2017. Currently in Operation
FGRU Project FEL/1
Study (2014)
GT Improvement
(2016)
• FGRU Potential of > RM 50 Mil/yr
• GT Improvement >RM 100 Mil/yr
Key Success Criteria for continuity:
• Dedicated ELMS team at OPU
• ELMS Roadmap and implementation plan
• Initiatives – both CAPEX and OPEX
FRR and SER
(2018)
• New Baseline

13. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
CollaborationAreasforImprovementofEnergy
Performance
Open

14. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Systematic Energy
Approach
GTS supports the PETRONAS by providing consultancy
services
Confidential
Development and Application of General and Site Specific Energy Standard Practices : PEPSTAR
Development and Delivery of Training Materials : Energy Improvement
Energy Monitoring
• Energy Baseline
• Compliance to ELMS v2.0
 Energy Index
 Plant Balances
Energy Solutions
• Meet local and int. energy
legislations
• Improve system/eqpt eff
• Minimise waste and losses
• Use of state-of-the-art
processes and eqpt
technology for enhanced
processing eff.
GHG Solutions
• Flare reduction assessment
and continuous
improvement
• Design and operating
compliance
• Flare Recovery Technology

15. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
GTS/KBC Collaboration has helped to deliver value for
PETRONAS
• Technology Transfer via Strategic Alliance
• Simulation Tools
 PetroSIM (and associated reactor packages), ProSteam, Supertarget
• Identification of Opportunities for Improvement
 Gap Analysis
• Optimisation Methodology and Practices
 Profit Improvement Program  Value Improvement Program
- GPK,GPS, MLNG TIGA, MTBE/PDH, EMSB
 Pinch Study
• Benchmarking
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16. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
SustainingEnergyPerformanceGroupwide
Open

17. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Sustaining Energy Performance requires focus effort at all
level
• Sustain Energy Management System – ELMS 2.0
• Establish specific energy target and roadmap for individual OPUs
• Standardization of Tools
• Expansion of PETRONAS Energy Practices & Standards
• Institution of Specific Roles to focus on Energy within the PETRONAS
fraternity – Energy TP
 Skill sets reside with individual vs organization
 Specific training – tools, methodology, technology
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18. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Sustaining Energy Performance requires focus effort at all
level
• Leverage on CoP to drive Energy Improvement Groupwide
• Leverage on partner’s (eg: KBC) experience in specific areas
• Exposure to Technology Advancements
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19. KBC/Petronas Technology Session
& Round Table Workshop
Proprietary Information 16-17th January 2018
Thank you
19Confidential