PANČEVO OIL REFINERY MODERNIZATION PROJECT • 2009-2012
CB&I S.R.O. • BELGRADE 2012
CB&I was honored to be entrusted by our Client NIS/Gazprom Neft to execute the modernization project at the NIS Refinery in Pančevo, Serbia. The contract for CB&I’s services, which encompassed detail engineering, procurement, construction management, precommissioning, commissioning and start up services, was signed on October 14th, 2009 with CB&I Brno´s office, the Czech Republic. CB&I had previously been active in Pančevo, in the mid 1960ies. CB&I (The Lummus Company at that time), had designed and built the original refinery. After that, in 2006, CB&I (ABB Lummus Global at that time) was executing the Front End Engineering Development. In addition to these services it should be noted that the heart of the plant, the Mild Hydrocracker, uses the Chevron Lummus hydrocracking technology. Using this technology, the plant, after the modernization project, is designed to produce products in compliance with the latest European norms, using world’s first class technology. The MHC/DHT unit is also designed to minimize harmful environmental impacts and exceeds the most stringent European Union requirements. The plant will produce gasoline, diesel and kerosene with ultra low sulphur content, below 10 ppm as per Euro 5 standard. The tasks were clear from the very beginning: design and build a safe, clean, world class and reliable plant, with an aggressive schedule and budget, maximizing the use of Serbian talents, staff, subcontractors and fabricators. The schedule could only be achieved by concurrent execution of engineering, procurement and construction. Initially the Serbian market was not fully familiar with the concept, but it soon embraced it. Our Health, Safety and Environmental (HSE) goals were very ambitious. They were achieved by the implementation and strict adherence to the CB&I and NIS Refinery HSE program. Therefore, rules were followed by all involved, along with the extensive use of our HSE management system.
The comprehensive Health, Safety and Environmental program was put in place from the start of the construction. The HSE program required extensive training ( whereby more than 20,000 training certificates were issued), implementation, field follow-up, positive recognition through safety celebrations, constant vigilance and a very tight disciplinary program. The programs such as ‘I-care’ (whereby positive and negative observations were being made of approximately 1 per every 79 man-hours) were a great help. Walk-through leaderships by the CB&I and the subcontractor Project Teams were essential for the success of the HSE program. The result of the program implementation was that the project achieved in excess of 5,000,000 safe man-hours without Lost Time Injury. Engineering and procurement began immediately after contract award. Design was rapidly completed to start the site preparation and the installation of temporary site facilities. Construction began in the summer of 2010, with soil improvement and piling. In the winter of 2011 civil works commenced and the peak was reached in late 2011, when the project employed around 1,800 people daily. In total, approximately 10,000 people have worked on the site in Pančevo at various times. People from 30 countries have been engaged on the site: Serbia, Russia, Croatia, Romania, Bulgaria, Bosnia, Montenegro, Macedonia, Hungary, Slovenia, Austria, the Czech Republic, Lithuania, Latvia, Slovakia, the USA, Germany, Holland, Belgium, Portugal, France, Italy, Columbia, Denmark, Ukraine, India, Poland, Turkey, Australia and Great Britain. The people were engaged by 23 contractors, 15 Serbian and 8 international, including CB&I. During the realization of this project several challenges had to be overcome. The logistics were very challenging as they involved bringing heavy equipment from various countries (Belgium, Italy, Russia), to the Azotara’s Danube port with subsequent transport to the site for erection. All stages developed exceedingly well through good planning and proper preparation.
On the site, the implementation of our HSE program was certainly challenging, but also rewarding, as no one sustained any serious injury with permanent disability. The implementation of the progressive project and construction management system with local subcontractors was very satisfying, since safety, productivity and quality of the performance improved. CB&I routinely executes “brown field” projects (i.e. projects within existing refineries or petrochemical plants) all over the world. The challenge is to construct a large project safely, with minimal disruption to the normal plant operations. This was achieved through good cooperation with NIS’ Project Team, Refinery Operations and Maintenance, Fire and Safety, Security and Administration Departments and Refinery Management. Seven hundred eighty days after the official ground breaking ceremony held on June 21st, 2010, Mechanical Completion was signed on August 22nd, 2012 and Ready for Start Up was achieved on October 29th, 2012. CB&I Project Engineering & Construction is immensely proud of the project’s success. This was accomplished through the excellent cooperation between NIS, CB&I, Projmetal and all the subcontractors involved. The project has been truly challenging, rewarding and successful in achieving the goals in all areas: safety, quality, schedule and budget. It will undoubtedly become a bench mark in the industry of the region, as well as for our Client NIS/Gazprom Neft. Hynek Koutny Project Director
Lars M. Johansson Construction Director
CB&I Chicago Bridge and Iron (CB&I) designs, engineers and constructs some of the world’s largest energy infrastructure projects, providing a full spectrum of EPC solutions and proven process technologies. Drawing upon more than a century of experience and the expertise of approximately 23,000 employees worldwide, CB&I safely and reliably executes more than 700 projects a year through its three business sectors. Lummus Technology that capitalizes on more than 2,800 patents and patent applications to provide process technologies, catalysts and specialty equipment for petrochemical facilities, oil refineries, and gas processing plants; CB&I’s Project Engineering and Construction sector that builds upstream and downstream oil & gas projects, LNG liquefaction and regasification terminals, and a wide range of other energy related projects and CB&I’s Steel Plate Structures sector that designs, fabricates and constructs storage tanks and containment vessels and their associated systems for the oil and gas, water and wastewater, mining and nuclear industries. CB&I has headquarter at The Woodlands, One CB&I Plaza, 2103 Research Forest Drive, Texas 77380, U.S.A.
NIS NIS is a leading vertically integrated oil and gas company in South-East Europe, exploring, extracting and refining oil and gas and selling oil products. The main shareholders are Gazprom Neft (56.5%) and the Government of the Republic of Serbia. The company owns two refineries with total annual capacity of 7,300,000 tons of oil at PanÄ?evo and Novi Sad, along with 480 filling stations and distribution centers. NIS operates in numerous European countries: Serbia, Hungary, Romania, Bosnia and Herzegovina, Montenegro, Croatia, Bulgaria and Macedonia. The company employs more than 9,000 people. It is also involved in oil production project in Angola.
Pančevo Oil Refinery Pančevo Oil Refinery is a medium complexity, medium size refinery with the total capacity of 4,800,000 tons annually or 96,000 bbl/day. It is situated 20 km from Belgrade, Serbia. Refinery’s storage capacity is approximately 700,000 cubic meters of crude oil and derivates. It is mostly imported crude oil that is being processed (70-80%). It is supplied either by pipeline (coming through Croatia) or by barges on the Danube river (coming from Romania and Hungary). The rest of the processed crude oil has domestic origins (oil fields located in the province of Vojvodina). Pančevo Oil Refinery’s main products are Gasoline, Diesel and LPG.
440.52’N
200.39’E
P A N Č E V O O I L R E F I N E R Y M O D E R N I Z A T I O N PROJECT
Pančevo Oil Refinery Modernization Project The Pančevo Oil Refinery Modernization Project has been the most significant investment activity in Serbia’s recent history. It is intended to increase refining depth and ensure the production of fuels in accordance with the Euro-5 standards. Gazprom Neft has invested 547 million euro in NIS’s upgrading and rebuilding, including 397 million euro in building the hydrocracking facility and over 150 million euro in modernizing and adding to the plant’s infrastructure, equipping the hydrogen facility and in ecological projects. The modernization project will enable the refinery to adhere to the latest emissions protocols and requirements, thus meeting world class environmental standards. The construction of the Mild Hydrocracking and Hydrotreatment complex at the Pančevo Refinery will enable the plant to increase its throughput up to the maximum annual capacity of 4.8 million tons, further increasing profit of NIS to more than 271 million euro per year. The complex will not only cover local Serbian market requirements, but it will also provide conditions for export of gasoline supplies to the Balkan states. When the complex achieves its designed capacity, the unleaded gasoline throughput will reach 638 thousand tons per year. Further, the volume of domestic Eurodiesel annual production will increase significantly from the actual 230 thousand tons to 1.54 million tons per year. In October 2009, “Naftna industrija Srbije” (NIS) and CB&I (Brno´s office, the Czech Republic) signed the contract to build a Mild Hydrocracking and Hydrotreating complex in Pančevo Oil Refinery, including construction of the new offsite units.
Meeting EU standards on product quality. The plant’s modernization project is designed to produce products in compliance with the latest European norms, using world first class technology. Reconstruction of the units and infrastructure in order to improve the process efficiency and crude oil valorization. This project will enable higher level of flexibility in terms of the selection of crude, from low-sulphur to high-sulphur crudes. The reduction of energy costs. Modernization will introduce the new method of energy supply which will enable the lowering of the petroleum products cost price, due to lower electricity consumption. Improvement of environmental protection. The project will enable the refinery to adhere to the latest emissions protocols and requirements, thus meeting world class environmental standards.
Modernization Goals
The existing PanÄ?evo refinery was designed by The Lummus Company (now part of CB&I) from its Paris Office in the mid 1960ies. The street/avenue numbering and all the equipment numbering is according to the old Lummus specifications. The Lummus’ Company name can still be found on the heaters. It is a great honor that CB&I was engaged again to be a partner in the important modernization project. With 123 years of industry experience, CB&I has a long work history in most of the countries where it has projects today. CB&I values building relationships with clients that lead to repeat business throughout the lifecycle of projects and their future endeavors.
Tradition and Experience
Licensed Technologies
Lummus Technology capitalizes on more than 2,800 patents and patent applications to provide process technologies, catalysts and specialty equipment for petrochemical facilities, oil refineries and gas processing plants. The heart of the PanÄ?evo plant, the Mild Hydrocracker, is using the Chevron Lummus Global (CLG, Chevron Lummus Global, a joint venture of CB&I Lummus Technology and Chevron U.S.A. Inc.) ISOCRACKING hydrocracking technology to efficiently convert heavy feedstocks into high quality middle distillates and lube oil basestocks. More than 100 ISOCRACKING units have been designed since 1962, with a total feed capacity exceeding 2.5 million barrels per stream day. The CLG ISOCRACKING process is now being selected by more refiners than any other hydrocracking technology.
New Units
The 2009-2012 refinery modernization program at PanÄ?evo has performed construction of the following units and facilities:
The construction of the complex for mild hydrocracking and distilate hydrotreating MHT/DHT in PanÄ?evo Refinery represents the process of crude oil secondary refining, and it is the key element of the modernization program. The infrastructure of the refinery was significantly improved as well. Inside the refinery perimeters several new and modernized infrastructure facilities have been built from the most advanced LPG storage tanks, new flares and a modern electrical transformer station up to a new tank truck loading point and a series of modern units for gas and other process residues.
Mild Hydrocracker / Distilate Hydrotreater Unit Hydrogen production Unit (made by third party) Sulphur Recovery Unit Sulphur Forming (Granulation) facility Amine Regeneration Unit Sour Water Stripping Unit Off Gas PSA Unit The flares for burning of hydrocarbon gases and acid gases Gas Concentration Unit (revamp) Compressed Air Unit Cooling Water System LPG Storage Condensate System Fuel Gas System Retention Basin Interconnecting Facilities Fire & Gas Protection System Central Control Room Building Electrical Substation
CONSTRUCTION PROGRESS
The VGO Mild Hydrocracker/Distillate Hydrotreater Unit (MHC/DHT) with designed capacity of 3 million t/y is part of the Refinery Expansion Program of NIS Oil Refinery in PanÄ?evo. The products from the unit are: sweet cold low pressure Off gas which goes to the PSA (Pressure Swing Adsorption) unit, Product Stripper Off gas and Naphtha Stabilizer Overhead Liquid which feed the existing GCU (Gas Concentration unit) unit, Stabilized Naphtha, Kerosene, Diesel and Unconverted Oil for the FCC (Fluid Catalytic Cracking) unit. The unit consists of Reaction Section, Fractionation Section and Make-up Hydrogen Compression Section. In addition, the unit regenerates Rich Amine stream and Sour Water for treatment in Amine Regeneration Unit and Sour Water Stripper Unit respectively. All equipment is designed to handle 50% turndown of the minimum flow case in each section.
S-4300 – MHC-DHT VGO Mild Hydrocracker / Distillate Hydrotreater Unit (MHC / DHT)
S-4300 – MHC-DHT VGO Mild Hydrocracker / Distillate Hydrotreater Unit (MHC / DHT)
S-4300 – MHC-DHT VGO Mild Hydrocracker / Distillate Hydrotreater Unit (MHC / DHT)
S-4450 – Sulphur Recovery Unit
The Sulphur Recovery Unit (SRU) S-4450 treats the acid gas from the Amine Regeneration Unit and the SWS gas from the Sour Water Stripping Unit and extracts sulphur. The Degassing removes H2S from the liquid sulphur. The facility is designed to recover 99.9% of the sulphur content of inlet acid gas and SWS gas streams. Degassed liquid sulphur will contain max. 10 ppm wt. of H2S. The emission of sulphur oxides into atmosphere will be reduced to comply with the most stringent European norms.
The Amine Regeneration Unit (ARU) S-4950 treats all of the rich amine solution coming from the VGO Mild HC/Distillate HDT unit and the Sulphur Recovery Unit II. ARU removes acidic components absorbed in rich amine solution feed streams. The unit is designed to finally deliver a lean amine product meeting the specification of max. 0.01 mol H2S /mol amine. Designed capacity of the unit is 245,126 kg/hr of rich amine solution.
S-4950 – Amine Regeneration Unit
The Sour Water Stripping Unit III (SWS III) S-4900 is designed to remove hydrogen sulfide H2S and ammonia NH3 from sour water produced in the Mild HC / Distillate HDT, the future Naphtha Hydrotreater, Sulphur Recovery and existing HDS II. The unit is designed to finally deliver a stripped water product meeting the specification of max. 1 ppm wt. H2S and 20 ppm wt. NH3. The design capacity of the unit is 32,000 kg/hr of sour water.
S-4900 – Sour Water Stripping Unit
MHC/DHT Off Gas PSA for purification of hydrogen returned from MHC/DHT. The POLYBED PSA unit uses Pressure Swing Adsorption (PSA). Impurities are adsorbed at high pressure and then desorbed at low pressure.
MHC/DHT Off Gas PSA
HC Flare System (S-3700). Main header is routed to the Hydrocarbon Flare Knock Out Drum and the flare stack. The maximum load after realization PanÄ?evo Oil Refinery Modernization Project is 221.6 t/h. A new hydrocarbon flare system for the new and existing (S-3600) units is provided for Block 22 and Block 24. Primary function of the hydrocarbon flare system in Block 22 is liquid removing from relieved medium. Height of Flare Stack is 147 m, which is satisfactory by all environmental standards.
S-3700 – HC Flare Hydrocarbon Flare Facilities
S-3700 – HC Flare Hydrocarbon Flare Facilities
New Sour Gas Flare system including Knock Out Drum for the new units is provided for Block 22 and with flare stack PA-3751 in Block 21. The new Sour Gas Flare System S-3750 covers relief flow from future units. Height of Sour Gas Flare Stack CB-3751 is 50 m.
S-3750 Sour Flare Sour Gas Flare Facilities
The new unit is located in Block 16 and it is designed for handling and storage of flammable substances as Liquefied Petroleum Gas (LPG) and Propylene (PLN). Media are stored in 6 aboveground spherical storage tanks and transported via vertical barrel centrifugal pumps to tank truck / tank car loading areas. Nominal capacity of each spherical tank is 1,000Â m3, in total 6,000 m3.
LPG Storage Unit
LPG Storage Unit
Central Control Room Building (CCR) integrates the existing and new built process plant control systems into the new modern control and safe guarding systems in order to increase the plant operation quality and maintenance efficiency. Operator stations, from which plant operators are able to control all process values from connected units, are placed in CCR. In operators station the communication system, CCTV, Gas Detection System and Fire Detection systems are integrated too. Central Control Room Building
Protecting the environment is one of CB&I’s core values. This commitment is demonstrated through CB&I’s environmental management program, innovative solutions for reducing air emissions and technologies for producing cleaner fuels. The technologies applied in the Pančevo Refinery Modernization Project are among the most advanced available technologies in the area of crude refining and environment protection. CB&I implemented several innovative technical solutions and constructed additional cleaning facilities that will crucially change the situation related to the air pollution in Pančevo (the town where NIS Refinery is located), surrounding area and finally in whole Serbia. The MHC/DHT unit is designed to minimize harmful environmental impacts. The design includes measures to minimize the amount of generated waste and to control those streams that cannot be eliminated. Chevron Lummus Global design minimizes high pressure flanges and valves for safety, and environmental preservation as well. Therefore equipment and piping connections are welded. Provided pumps have mechanical seals suitable for high design pressure and temperature. Compressors are equipped with seal oil flush systems to prevent leakage to atmosphere. Sample piping is generally return routed into process stream or flare header to minimize oil sent to drain or gas to atmosphere. Whenever possible, no process vents are discharged to the atmosphere. Instead, vent gases are routed to downstream units for recovery as fuel. In cases when vent stream recovery is not practical, vents are routed to the flare. In order to control potentially noxious emissions, the respective vessels are maintained under nitrogen pressure and vented to flare.
Environmental Protection
Safety is a Core Value and CB&I’s highest priority. It is CB&I’s obligation to protect employees and everyone who works on the sites and in the offices. CB&I is among the best, in the industry, in providing a safe working environment where everyone can work productively and go home uninjured every day. CB&I’s safety culture is the foundation of “Nobody Gets Hurt” goal. During the Pančevo Oil Refinery Modernization Project a comprehensive health, safety and environmental (HSE) program was put in place, including extensive training (we have issued around 20,000 training certificates), implementation and field follow-up, positive recognition through safety celebrations, constant vigilance and also through a tight disciplinary program.
Safety Culture
Safety Culture
CB&I trains employees to identify leading indicators of at-risk conditions for immediate corrective action, in order to prevent injuries. The systems such as “I-care”, whereby positive and negative observations are being made, were a great help. These observations have led to reductions in incidents as employees take ownership of the safety process and look out for one another. During this project, 68,723 of “I-care” observations were made (approximately one per 79 man-hours). The Project Team’s leadership example was essential for the successful HSE program. As a result of CB&I culture, an outstanding safety record is still present today. In excess of 5,000,000 safe man-hours were performed from February 2011 to date, thus reflecting CB&I’s commitment to the belief that zero incidents can be accomplished.
CB&I as Main Contractor led this project with 22 contractors, of which 15 Serbian and 7 international companies. The project reached around 1,800 people daily in the peak, however approximately 10,000 people have worked on the site in PanÄ?evo at various times during the project execution. During the project, around 15,000 working permits were issued. People from 30 countries have been engaged on the site: Serbia, Russia, Croatia, Romania, Bulgaria, Bosnia, Montenegro, Macedonia, Hungary, Slovenia, Austria, the Czech Republic, Lithuania, Latvia, Slovakia, the USA, Germany, Holland, Belgium, Portugal, France, Italy, Columbia, Denmark, Ukraine, India, Poland, Turkey, Australia and Great Britain. Many more nationalities have been involved in supplying material and equipment for the project.
Joint Venture
Overcoming Challenges
During the realization of the project, the CB&I team successfully overcame several significant challenges in the construction, logistics and HSE system implementation. CB&I routinely executes “brown field” projects, i.e. projects in existing refineries or petrochemical plants all over the world. The challenge is to construct a large project safely, with minimal disruption to the normal plant operations. In Pančevo Oil Refinery, this was achieved through good cooperation with NIS’ Project Team, Refinery Operations and Maintenance, Fire and Safety, Security and Administration Departments and Refinery Management. The logistics of bringing heavy equipment from Belgium, Italy and Russia through various routes to the Azotara port on the Danube and the subsequent transport to site and erection were challenges that went very well, through good planning and proper preparation. On the site, the implementation of the HSE programs was certainly challenging, but also rewarding as no one sustained any serious injuries with permanent disabilities. The implementation of a progressive management system (with local subcontractors) was rewarding since it led to safety, productivity and performance quality improvement.
The Art of Making
The Art of Making
The Art of Making
Concrete
Project in Numbers
30,060 m
3
6,180 t 429 Structural Steel
Major Equipment
311 Control Valves
Total Pipe
4,134 t
Manual Valves
8,325 2 76,734 m Pipe Insulation
Cables
927,470 m 12,600 m Equipment Insulation
2
133
No. of trucks with scaffolding
Instruments
3,734
Project Duration
CB&I spent 780 days on this project. Official start of construction was on June 14th 2010. Mechanical completion was signed on August 22nd, 2012 and Ready for Start Up was achieved on October 29th, 2012.
The modernized Refinery was put into operation on November 1st, 2012. The Mild Hydrotreating and Hydrocracking (MHC/DHT) unit was officially launched in the presence of Serbian President Tomislav Nikolić, Prime Minister Ivica Dačić, NIS General Director Kirill Kravchenko and Gazprom Neft President Alexander Dyukov, ambassadors of Czech Republic, Denmark, Portugal, trade attaché of USA and Holland, among others.
Start-up
Russian President Vladimir Putin sent a letter to the participants of the ceremony announcing new investments in NIS, that would reach 1.5 bn euro.
Dear friends! I am sincerely greeting all the participants at the opening ceremony of the new production complex at the refinery in the town of Pančevo. A large-scale program of the company’s modernization has been completed. It’s been implemented with the participation of “Gazprom neft” company, which holds the majority stake in “Oil Industry of Serbia” - NIS. Over 500 million euro has been invested in the technology upgrade of the industrial capacities, while the total volume of capital investments in the development of NIS has exceeded 1.5 billion euro. And that is only the beginning another 1.5 billion euro is to be invested soon. By the joint efforts of Russian and Serbian sides during only a few years NIS has turned into a modern energy holding company. The company, where people from two countries work together, steadily increases its profit, increasing payments to the budget of Serbia and is ready to conquer new markets in the Balkan region. Harmonious interaction during the implementation of this project is the best proof that the business circles of Russia and Serbia are able together to realize the most ambitious plans. Once again I congratulate you. I wish you successful work for the benefit of our nations on further strengthening the Russian-Serbian cooperation. Vladimir Vladimirovič Putin
NIS General Director Kirill Kravchenko also thanked CB&I for the cooperation in achieving the completion of the project.
The Winning Team
Main Contractor: CB&I s.r.o. (Czech Republic)
Subcontractors: BMR GROUP DELTA INŽENJERING DENEZA M EUROMONT Leseni GOŠA MONTAŽA HEURTEY IMG Institut Mihajlo Pupin ISOLMEC KEYING MONTAGNA Projmetal SARENS SIEMENS SIM SZU Brno TEHNIX TERMOELEKTRO ENEL TERMOELEKTRO TERMOCO Uralhimmash VINČA
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Hennlich HERMETIC Honeywell HP VALVES IDT Invensys IPU Armatury JOHN ZINK JSP Kabex KOCH GLITSCH Koch Heat Transfer KPS Metal Krohne KUDOS Le Vide Lucy Software MacLean (NOSKAB) Mahle Manag MASONEILAN MATTECH METSO Milsped Moravia Systems Multicompany MUTE NALCO Noiseprotection Noreva O.C.S. Ondrejovicka strojirna Patenting Penzhimmash Petrometal Plattner POWERBRIDGE
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PSS RHEINHĂœTTE ROXTEC RUML Saccap SBS SECURITON Schneider Sices Siemens AG Siemens doo Spirax Sarco Stahl STRAHMAN STRANICH SULZER SVT TECTRA Thermoengineering Thomassen TISAB TYCO UOP Uralhimmash Van Leeuwen Vatrosprem VeratNet Xomox Yokogawa
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Published by: CB&I s.r.o. Dragiše Brašovana 10/1 11000 Belgrade, Serbia
CB&I s.r.o. Holandska 8 656 80 Brno, Czech Republic
www.CBI.com
For publishers:
Hynek Koutny - Project Director Lars M. Johansson - Construction Director
Project team:
Svetlana Dingarac - Project Manager www.svetlanadingarac.com Dušan Stojančević - Project Co-Manager www.creativelight.rs
Text:
Hynek Koutny, Lars M. Johansson
Proofreading:
Sandra Šumonja Nikolić
Photography:
Svetlana Dingarac, Dušan Stojančević, Petr Dvořák, Srđan Čanić, CB&I HSE team
Design&prepress: Prof. Radomir Levajac & c4 gruppe Printed in Serbia Copies: 500 Copyright: All rights over this publication are the property of the CB&I s.r.o. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holder.