North Africa Oil & Gas Summit 2010 Vienna, Nov 4. Managing Gas Pipeline Project Performance Graeme Lamont, EMEA Gas Business Manager

Transcription

1 North Africa Oil & Gas Summit 2010 Vienna, Nov 4 Managing Gas Pipeline Project Performance Graeme Lamont, EMEA Gas Business Manager

2 Outline Agenda Relevance of Gas to North Africa Security of supply for domestic needs increasing local demand Export to and dependence from Europe on North Africa Gas Financial pressures Capital costs increasing Limited CAPEX around Operational costs increasing Example - Large Complex >$10M Gas Pipeline Project Thoughts & Conclusions A New Construction model Supporting technology in delivering Gas 2

3 Who is Honeywell? - Automation Overview Profile Strengths: Revenue: $12,6 B Technology Leading Brands Global Presence Installed Base Process Solutions 19% Process Controls Building Solutions 21% Building Controls Sensing and Control 7% Environmental and Combustion 19% Thermostats Security 22% Motion / Human Presence Sensors Life Safety 12% Fire/Smoke Sensors Gas Solutions Instant Alert Airport Systems Speed and Position Sensors Accelerometers Building Automation Water Control Gas Valves Electrical Devices and Systems CCTV/ DVR User Interfaces Control Systems System Panels Gas Detection Focused on Technology Home Medical Care 3

4 Shift in Gas Supply / Demand Balance Demand in Europe Supply from North Africa Supply from Russia & Central Asia Demand in Asia Supply Gas reserves in North Africa, Central Asia, Russia Diminishing reserves in W. Europe Demand Increasing demand from Asia, emerging local demand Important strategic transport corridors Supply to Europe Supply to Asia Key gas transport corridors can be potential risk areas, therefore need for security mechanisms to safeguard uninterrupted energy supply North Africa Pipelines Critical to Meet Energy Demands 4

5 Evolution of Gas Pipeline Technology A long time ago, in the mists of time all manual measurement/control Then 20yrs ago - islands of information, lots of local different systems Now, still relatively few large integrated gas pipeline projects, little change in project approach 5

6 Technology Purpose in Gas Pipelines Typical Technology Areas for a Gas Pipeline: Security System Process Control Metering Solutions Pressure Regulation Compressor Control Emergency Shut Down Fire and Gas Detection Telecommunication Pipeline Leak Detection Condition Monitoring Earthquake Detection Corrosion Monitoring Technology Aspects of a Gas Pipeline Measurement & Control Safely, Security Without it you cannot start/ operate Always at the end, last for design info Hence on critical path under pressure, reputation risk 6

7 Consider Project Size and Scale Big Projects carry bigger risks schedule and finance Have greater visibility, different stakeholders demands Large Projects have many interfaces contractual, organisational & technical Technology suppliers have a difficult job: One company cannot do all Technical competency is not complete for all disciplines needed Contractors can help but have difficulty in becoming specialists in technology Technology just for its own sake is not the answer 7

8 Contemplate Project Complexity Impact Impacts execution and contracting strategy New technology benefits may be easily dismissed with heightened risk awareness As very few suppliers can do all.has increased risk of reduced competition, hence price concerns $$$$ Do, as we did before last time Missed Opportunities Don t articulate operational value Missed Opportunities 8

9 Complexity Brings Organisation Challenges Are new contracting strategies needed? Owner Owner Owner Owner EPC MAC EPC EPC MAC EPC HON HON #1 #1 Main Automation Contractor Full service Direct hire // peer contractor to to EPC Multiple EPC Contractors #2 #2 Main Automation Subcontractor FEL by by Owner and MAC MAC package passed to to EPC MAC direct report to to EPC MAC indirect report to to Owner Multiple EPC Contractors #3 #3 Hybrid EPC/HON Blended team MAC Based on on core strengths. #4 #4 EPC Project Template EPC designs/leads project. HON Hardware & Software HON Consult/Support EPC HON works operability in in parallel with COP and/or operator, or or works with EPC/Operator in in T&M FEED. 9

10 Gas Pipeline Project Example Operator of a country s natural gas transmission network, has integrated security, control and metering system with 177 gas metering stations. Over 13,000 km regional gas pipelines and 568 km international transit gas pipelines, 2 dispatching centres, 9 regional district centres Challenges with security, international transit points, domestic entry points, compressor stations, underground storages different technology needs Pressure reducing stations, technological nodes, line valve stations Project financing was difficult, as large project saw lots of scrutiny from buyers no overruns! Technology risk was important will it work? Honeywell was lead of a technology consortium led approach. 10

11 New Approaches Developed Traditional Approach Safe & Secure Environment Integrated Operations & Business Readiness DCS/SIS/AMS/Field on Cost & Schedule 1D Mindset: Project Centric (Cost, Schedule, Risk) 3D Strategy: Project Focus: (Cost, Schedule, Risk) Ops Focus: Startup & 1 st Yr Ops Focus Lifecycle Focus: Safe, Reliable, Efficient 11

12 Conclusion Start with End in Mind We see that North Africa demand for new & successful Gas pipelines projects will not cease - Export demand, increasing local demand Industrial Power, City Gas, CNG Best Projects need to consider less traditional approach for technology, important to assess early any operations benefits Balance risks - done before -versus- benefits/future-proof Single point of responsibility for focused technology integration Ensure competition is still strong under each technology area to ensure best pricing for any commodity goods Realisation that initial project price is important but even more so is the total price/cost of ownership over 20 yrs operations Give TIME and SPACE for the technology needs and technology strategy discussion.we are still learning 12

13 13 Thank You