Statement from the Refinery Project Developers

Triad Project Experience

Triad’s approach is to work as the Owner’s Engineer and Project Manager, and not as a contractor. By this means, the Refiner has a qualified Project Management team with the substantiated ability, experience, leadership and incentive to control the project through mechanical completion, commissioning and start-up. Triad’s people have construction and operating experience, which recognizes the Refiner’s need to have an operating plant for the lowest total installed cost. Triad is not a contractor. Triad’s expertise is based upon acting as Project Manager for the Owner’s benefit. We work for the duration of the project through start-up as if we were Refiner’s personnel.

Triad has experience applying this approach for other refiners. In 1980, we designed and built the last grass-roots refinery done in North America. It is a fully integrated, FCC based process architecture converting about 85% of the crude feedstock to gasolines and distillate fuels. This work was done under Mr. Woolley’s direction, and the scope of responsibility included the creation of a refining department for the Owner who had no refinery staff. The new staff was hired and trained to operate and maintain the refinery. Upon mechanical completion, the plant was commissioned and started up as a successful and cost efficient operation, meeting or exceeding all the design criteria.

On this project Triad pioneered the application of modular design before it had gained industry acceptance. The project was designed with 150 process and piperack modules. Its commercial success is reflected in the Total Installed Cost being less than 65% of the industry norm. The use of modular design made an essential contribution to the bottom line, but was not alone sufficient for success. Through Triad’s ability to co-ordinate it, the commercial strategy of dividing the work among several qualified field sub-contractors, and module assembly shops, maintained control for the Owner. Although our first experience in 1980 was very successful, we have continually improved our methods, and further added to our modular design expertise over the years.

The refinery site was situated on 320 acres without any existing infrastructure. Permit applications were begun in early 1980. The site work began in September 1980, and the plant started up in June 1982.

The modules were built in a shop at the same time as the civil work was proceeding onsite. The fast-track schedule contributed significantly to the capital saving.

As another example of this EPCM (engineering, procurement, construction management) approach, we have included a picture file showing the 85 mmscfd Hydrogen plant completed by Triad this summer for Chevron at their El Segundo refinery in California. Haldor Topsøe was the process licensor and the plant was built to meet or exceed the refinery standards as well as all applicable regulatory codes.

The new unit was built immediately adjacent to the existing Hydrogen Plant. Design and construction were made more complex by the tight space available, and the proximity of operating facilities. The old Hydrogen Plant was to be shut down and disconnected, and in its place the new Unit was to be tied in. It was Triad’s responsibility, on behalf of the Owner, to ensure the reliability of the new equipment and controls. The new plant equipment and its controls came on line smoothly to supply all the hydrogen needs for the complex. Commercially, the TIC is about 65% of the norm for the industry.

To realistically control the work executed by the sub contractors, we need our own estimate and schedule for the work. First we need to scope the project to define the process equipment in the form of a FEED (Front End Engineering Design) study for the Refiner. The next step we recommend is the preparation of control documentation by Triad from the FEED output. Triad would do a 3-D electronic model of the entire proposed facility and prepare a Budget Estimate (+/-10%), and detailed Project Schedule within about 1 to 3 months, as the basis for project control. This would be based upon the P&ID’s, equipment layout drawings, equipment duty specifications, single line electrical drawings, instrument index and data sheets expected to be available from the FEED data. This would give the Owners reliable control data with which to conduct the project.

Triad has a successful track record, and would like to discuss with Owners, who are contemplating a project, the application of our unique approach. We would like to have this opportunity to participate in the early planning (e.g. FEED) to offer our input at the very beginning. We feel we can contribute to the potential savings in time and capital for the Owner with good planning based on our actual experience.

As a construction-driven organization, we are set up to then execute the plan effectively. As most of the capital is consumed by putting together equipment, materials and construction labor, this is where Triad has saved Owners the most. We respectfully offer Triad as your EPCM team for your next project.

Robert G. Woolley, P.Eng
President