Idea Docket

Ideation Workshop
PCPL - Ammonia Project

Action Document
31 January 2019

PRIVILEGED AND CONFIDENTIAL

Ammonia Project Long-list of Ideas for IRR optimization

Priority for
implementation Priority for Impact
timeline - Capex, opex or
Sr. Category Description Remarks
(Immediate / schedule (High /
Short-term / Medium / Low)
Medium-term)

Cost- Design & Use GTG as primary source of power and STG as secondary source ( in case of
1
Spec optimization sudden shut down of primary source)
Sell excess steam generated by Ammonia plant (20 TPH from process & 20
2 Cost- Operations
TPH from HRSG & Boiler) to K1 plant at K1 CFB price

Operating the upcoming ammonia plant at 90-95% capacity as opposed to

historic 83% and sell the additional ammonia to the existing customer base
- Existing ammonia customer base can generate demand for additional 6000
3 Cost- Operations to 7000 TPM (72 to 89 KTPA) ammonia sale, which corresponds to 10-15% of
production capacity
- Operating plant at 90-95% instead of the historical average utilization (83%)
results in NPV increase of INR 109-189 Cr.

Schedule- Pre- Commence soil investigation based on preliminary plot plan. Could save time
4
construction as even if a bit of minor re-work is required in case of any plot plan change
Cost- Design & Clean and optimized plan for land utilization for OSBL facilities including roads
5
Spec optimization & pathways
Optimize mode of execution for LLI items - costs, time, transparency, effort &
6 Cost- minimize risks- GT-HRSG-Aux Boiler procurment to match overall project
Procurement schedule.
Long term agreement with gas provider at fixed rate to shield from market
7 Cost- Operations price variations. Develop a portfolio of gas sources that assures supply at sub-
$8/mmbtu prices
Cost- Design & Obtain consent for flare radius to reduce 90 m (as per OISD norms) from 60 m
8
Spec optimization as per allowable radiations level
Sell CO2 produced in the plant (which will otherwise be vented) to 3rd parties
and generate additonal revenue. Several Ammonia plants in India (existing
9 Cost- Operations
and past) have sold CO2 produced in their Ammonia plants. Explore alternate
uses of CO2 besides Enhanced Oil Recovery
Cost- Design &
10 Ensure plant capacity exceeds name plate capacity by 10-20%
Spec optimization
Seek a separate offer from EPC for detailed civil engineering design instead of
With the current status of the Project, this is not
waiting for the full EPC contract to be finalised. Enter into an early works
11 expected to provide any advantage. Hence, not
Schedule- Pre- contract to conduct civil design (while EC approval being sought) so that site
recommended.
construction works and civil works can proceed immediately after statutory approvals
 Now more clarity on land parcels availability and
To give EPC contract with Toyo based on available plot plan and soil data with topography survey available by Feb end, we
12
Schedule- Pre- rider of revising the same through change proposals should target EPC contract finalization by April
construction Immediate (Now-1High end.

Considering the complexity of utilizing existing

Cost- Resources from K1 like lab, F&S, canteen, workshop to be utilised as common
13 facility, this is not recommended. Canteen and
Procurement resources
lab equipment already optimized.
Preferably engage HRSG/ Aux Boiler supplier agency for GTG/HRSG/Aux.Boiler This is also in line with current thinking of EPCM
Cost-
14 package, as major portion of the package is boilers. GTG is a standard Immediate (Now-1High Services. Can be discussed in detail with EPCM
Procurement
package. Contract will be managed by Separate Engineering consultant contractor and vendors
GAIL NG station shall be on top priority as the equipment of the facility are
Cost- Its very important. Follow up is required with
15 long lead. Contract with GAIL & Land allocation for the NG station to be Medium-term (3-6
Procurement High continuous monitoring.
priority
Shall be included in EPC contract as a guideline
Maximize prefabrication and minimize field welding for piping. Can be used as
16 Schedule- to start prefabrication in parallel to Civil works
a discussion point during negotiation
Construction Medium-term (3-6Moderate and maximize prefabrication.
Offer attractive incentive to the Contractor after EPC award for early
This need to visited post EPC contract during
17 Schedule- Pre- completion of project.
implmentation based on the situation.
construction Milestone-linked incentive schedule for EPC contractor Medium-term (3-6Low
Follow” Built it clean” concept to achieve flawless commissioning there by
18 Schedule- Shall be included in EPC contract
Commissioning optimising commissioning time. To be a part of the work culture Immediate (Now-1High
Negotiate with EPC Contractor at the time of finalization of contract to front-
19 Schedule- Pre- load manpower for civil design of ISBL, as Soil Investigation Report as well as Shall be included in EPC contract
construction the equipment details are available. Short-term (1-3 moModerate
Sourcing of LLI packages from low cost countries (LCC) to take schedule and
Cost-
20 cost advantage. Suggest nominated subcontractors from LCC for EPC Not relevant
Procurement
consideraiton for other BOP and bulk materials.

Reduce excess separation distance shown around Diesel storage tank in the
plot plan, by complying with OISD standard which is used extensively in O&G
Cost- Design &
21 industry in India. Separation distance could potentially be brought down to Optimization is possible and is being done.
Spec optimization
4.5 meters per OISD standard. Check if PESO allows a lower limit than the
currently taken distance in the plot plan.
Immediate (Now-1Moderate

Assess possibility of making/construction of control room, sub-stations,

workshops, other aux. buildings etc. as pre-engineered buildings i.e., entire
building is assembled at the site.
The conventional building cost is estimated to be Rs. 1700-2000 per sq.ft in
22 CR and SS RCC
Mumbai , if it is pre-engineered, i.e., with sandwich panels etc. the estimated
costs may be Rs. 1200-1300 per sq. ft. (TBC)
However, significant benefits in schedule are likely - may reduce 1/3rd of the
Schedule- time. To identify buildings for this idea
Construction Short-term (1-3 moModerate
Steel structure instead of a brick RCC structure for office building, warehouse,
substation - 15-20 days saving per floor on average. Impact on costs to be
23 Yes but not for Sub station
Schedule- estimated - likely higher costs. Check design basis building by building for
Construction incorporation of the idea Medium-term (3-6Moderate
 Get BOQ (rough/final) from previous KBR/similar plants for piping, fittings &
Cost- cable requirements of the ammonia plant- circulate RFQ to vendors. By the
24 Not relevant
Procurement time the final specifications are decided, the vendor identification, vendor
evaluation & major negotiaton is done.

Complete ITB preparation is involved which will

Explore competitive tendering with multiple EPC vendors instead of direct
take time and access to complete informatin at
ordering with single EPC. Potential benefits in costs (better financial bids in a
Cost- this stage is not feasible.This will lead to delays
25 competitive bidding scenario) however increasing the effort estimate and also
Procurement and any other contractor at this stage will take
challenges in bringing other EPC bidders up to speed with the project
time for both proposal as well as executing the
requirements
project. Coodination with TOYO-J

Cost- Financing,
26 accounting, Explore low cost funding sources - IFC or other external borrowings PCPL to review this option
taxation Immediate (Now-1High
Cost- Annual maintenance contract and rate contract (RC) for high value This is not relevant to project phase. This may
27
Procurement standardisation can help reduce lead time and on time delivery Medium-term (3-6Low be considered during Plant operation.
Conduct clean sheet costing for equipment or material accounting top 80% of
Yes. Expert advise to be explored. TOYO to be
Cost- OSBL cost. Considering the high value & high priorities, explore deploying
28 asked to provide the break up as much as
Procurement expert negotiator and negotiation techniques for the EPC negotiations
possible to help in negotiation.
(including using the clean sheet costing) Immediate (Now-1High
Current available similar size projects MTOs to
Cost- Benchmark cost estimates for Civil, Erection, Bulk Material for EPC contracts
29 be compared or prorated based on available
Procurement with similar sized projects - to be used during EPC negotiations
Immediate (Now-1Moderate data and used for negotiations.

Methodology: Placing of PO orders and PO advance can be scheduled for

Cost-
30 deferred payments matter of negotiation and mutual agreement
Procurement
Method: Deferred and late PO payments will reduce the interest burden on
cash flow, reducing capex cost.
Short-term (1-3 moModerate
Assess correct / best-fit redundancy levels for equipment keeping in mind
Cost- Design &
31 capex & working capital costs & risks involved - to impact optimum capacity & Not relevant
Spec optimization
number of equipment to be ordered.
To install the new ammonia plant in place of existing K1 ammonia plant. If
32 Schedule- Not possible
Construction space is limitation install utilities at new location
Cost- Design & Not to install Mercury guard as it will not be required as well as save foot
33 Can be considered. Provide spacing as it is.
Spec optimization print, installation cost, Delta P etc Short-term (1-3 moLow
Not to install Weigh bridge as it will not be required as well as save foot print,
Cost- Design &
34 installation cost, operation cost etc, instead use weigh bridge of either Yes
Spec optimization
outsourced or K1 for ocassional tankers like caustic / alkali Short-term (1-3 moLow
Cost- Design & Not to install SCR(Selective Catalytic Reduction) as it will not be required. This
35 Can be considered. Provide spacing as it is.
Spec optimization will save installation cost, piping cost etc Short-term (1-3 moLow
To produce chilled water using low grade heat of GT/HRSG stack for
Cost- Design &
36 production of Chilled water for reduction in energy consumption of Syn gas Not to be considered at this stage.
Spec optimization
compressor / GT / Air compressor
 Cost- Boundry wall, land development etc. non critical jobs to be done on ePCM to PCPL to explore the option to initiate engaging a
37
Procurement save cost Immediate (Now-1High contractor
Cost- Design & To be studied during detailed engineering based
38 ZLD steam to be generated from HRSG down stream low grade waste heat
Spec optimization Medium-term (3-6Low on steam balance
Cost- Financing,
Alternately, exemption being sought from
39 accounting, To claim full depreciation on capex of environmental equipment.
authorities for such investments
taxation Medium-term (3-6Low
Cost- Design & To be considerd and will assist in speeding up
40 Use steam import from K1 for ISBL pre-commissioning
Spec optimization Medium-term (3-6High precommissioning.

Modularization and pre-fabrication away from construction site in specialized

fabrication yard to be adopted as a standard practice for pipe racks, pipe
Schedule- Modularization to be asked to TOYO to
41 spools, steel structures, equipment base plates, flare stack, static equipment
Construction maximize in the EPC proposal
etc. and of compressor house, warehouse structures to reduce installation
time and to optimize overall construction schedule. Will need front-loading
Short-term (1-3 moModerate
Install Road crossing bridge at the beginning of project and lay temporary Urgetnt study to be initiated to evaluate for
Schedule-
42 power supply and some utilities from K1. Instead of Culvert- use a crossing High culvert Vs bridge. This shall be concluded before
Construction
bridge Immediate (Now-1 warding EPC Contract.
Fast track finalisation of civil and structural work contract along with UG
43 Schedule- Pre- Moderate To be discussed during finalising EPC contract.
construction piping and cathodic protection Medium-term (3-6
Cost- Design & Utility pumps to be bought as per ISO/ ANSI standard instead of API to reduce
44 Low Yes
Spec optimization cost Short-term (1-3 mo
Schedule- Contractors at site are not waiting for drawings for construction and Engg schedule to be discussed during finalising
45
Construction equipment and materials. Medium-term (3-6High EPC contract.
Schedule-
46 Piping pre fabrication starts in parallel to civil works Refer point No: 16.
Construction
Major civil works be completed at the earliest to enable mechanical
47 Schedule- To be implimented in EPC schedule.
Construction contractor to start equipment erection Medium-term (3-6High
It is recommended to consider only most required parameters mapping in
Cost- Design & DCS and also avoid interfacing some of the systems, which are not essential, This is to be implemented in defining EPC Scope
48
Spec optimization instead it is recommended to use hardwired signals for few critical alarms and and Execution
indications. Medium-term (3-6Low
It is recommended to take up simulation of 100% I/Os and graphics of DCS
Cost- Design & This is to be implemented in defining EPC Scope
49 and 100% simulation of ESD logics during FAT at vendor works, without any
Spec optimization and Execution
compromise. Medium-term (3-6Low
It is recommended to install one DCS configuration console with preliminary
Cost- Design & This is to be implemented in defining EPC Scope
50 graphics loaded, at PCPL project office. To review and modify as per owners
Spec optimization and Execution
requirement. Medium-term (3-6High
PCPL Instrumentation Engineers along with EPC contractor shall be fully This is to be implemented in defining EPC Scope
51 Schedule-
Construction involved in ISBL & OSBL control systems FAT to minimise changes at site. Medium-term (3-6Moderate and Execution
It is recommended to draw a separate schedule specific to each loop and
Cost- estimate the requirement of spool pieces considering the sequence of line This is to be implemented in defining EPC Scope
52
Procurement cleaning, based on control valve rating and size. Pre-fab Spool pieces may be and Execution
procured before piping erection, separately as per BOQ estimated. Medium-term (3-6High
 It is recommended to engage a expert team from a valve reconditioning
Contactor to be engaged by PCPL prior to start
53 Schedule- contractor (example Dembla), who will be ready with tools & tackles to
of pre-commissioning/commissioning activity
Construction attend control valve problems immediately right at the valve location. Medium-term (3-6Low
Field transmitters cannot be installed without completing painting of supports
/ stanchions. It is recommended to use pre-fabricated & painted instrument This is to be implemented in defining EPC Scope
54
Schedule- stanchions to reduce installation time of transmitters. Further the schedule and Execution
Construction shall give focus on painting of supports to avoid loose ends. Medium-term (3-6Low

Instrumentation activities are the last activities to start and also they are the
last activities to be completed. Every plant will be waiting for loop checking
activity to be completed and issue clearance from instrumentation for plant
commissioning. This largely influenced by fronts available for field
This is to be implemented in defining EPC Scope
55 instruments installation, hook-up and loop checking. Field Instruments under
and Execution
package vendors (skid mounted), instruments under EPC scope will have
scope of loop drawings by EPC contractor, which is in turn depends on
DCS/ESD vendor. It is recommended to give priority to the availability of loop
Schedule- drawings, which can be made phase wise – MMS, ITCS, DCS, ESD etc.
Construction Medium-term (3-6Low
Cost-
56 Explore the possiblity of procuring used GTG Not recommended
Procurement
For chemical cleaning, steam blowing, cardboard blasting, Lube oil flushing
Any how it will be outsourced by EPC as well as
Cost- etc it is recommended to outsource the services which will include the
57 SPGP contractor. Steam blowing can not be
Procurement equipment and kits to carry out the activity independently.
outsourced.
Medium-term (3-6Moderate
Cost- Post-pone a few Capex items like CO2 export system until later say 2-3 years Not to be considered as part of current project
58
Procurement after commissioning. Should be in EPC scope Immediate (Now-1Moderate scope
Cost- Design & SOP to be prepared and implemented during
59 N2 consumption to be optimized- part of SoP, can use restriction orifices
Spec optimization Medium-term (3-6Low pre-commissioning and commisioning phase
Though basic and well known, during pre-commissioning and
60 Schedule- commissioning , undertake as many activities as possible concurrently. - To To be incorporated in EPC scope.
Construction add to the SOP- execution manual Medium-term (3-6Low
Cost- Design & This is to be implemented in defining EPC Scope
61 Large areas not requiring back filling to be left as it is, such as flare/greenbelt
Spec optimization Medium-term (3-6Low and Execution
Cost- Design & Toyo to be asked to evaluate the option for cost
62 Use GRE piping for UG services including Fire Fighting
Spec optimization Short-term (1-3 moLow saving.
Obtain permission to deviate on road sizes of plot and stairs in ISBL vs. MIDC
63 Schedule- Very important and to be taken up imeediately.
Construction DC guidelines. Do be dealt immediately along with other matters with MIDC Short-term (1-3 moHigh
Cost- Identify long lead items based on current demand/supply and fast track its
64 To be incorporated in EPC schedule.
Procurement procurement immediately after EPC award by working with the selected EPC Medium-term (3-6Low
We have about 214 nos. of containers supplied with pipe material and they
Cost- are owners property. We can use them for site offices, site camp
65 Yes. To be discussed with Toyo.
Procurement accommodation for critical skilled labour e.g. Skilled welders, concreate
pouring teams etc. Medium-term (3-6Moderate
Completion of base layer of plant road along with site preparation which will
66 Schedule- Yes
Construction ease out the construction equipment movement Medium-term (3-6High
67 Schedule- Early Demolition of existing structure in the available land before EPC Yes
Construction Immediate (Now-1High
Cost- Procurement of required spare parts for the equipment will help in reducing
68 It is already being done
Procurement the inventory cost Medium-term (3-6Low
Cost- Reduction in the delivery time for spares and internal processing time will
69 Operational matter
Procurement help in optimizing the inventory cost Medium-term (3-6Low
Preparation and adherence to the project schedule and close monitoring to
70 Schedule- Yes
Construction identify the gaps Medium-term (3-6High
Steering Committee comprising top officials of PCPL, EPC Contractor, PMC
and OMC to be formed wherein unresolved issues by the Project
71 Management Team are flagged. Steering committee to meet once in a month. Yes
Derive experience and learnings from NPK & Dahej- Can be added to SoP-
Schedule- execution manual
Construction Medium-term (3-6Moderate
Schedule- Editable file of Issue Log Register to be kept at a central location accessible to
72 Yes
Construction all the agencies. Resolution of issues logged to be tracked. Medium-term (3-6Low
Schedule- Open multiple work fronts at construction site by proactive management,
73 Yes. To be incorporated in EPC schedule.
Construction scheduling and prioritization of EPC activities to sqeeze construction schedule Medium-term (3-6High
Schedule- Pre- LD against delay to achieve intermediate milestones rather than against delay Yes. To be discussed and finalised during EPC
74
construction of overall project schedule to keep tabs on the progress Medium-term (3-6Low contract finalisation.
Cost- Design & Separate Metering skid / ultrasonic NG flow meter should not be required.
75 Yes
Spec optimization Only orifice flow meter will be enough for the same Medium-term (3-6Low
Flare stack has been located above superstructure of ISBL plant, in some
Cost- Design & Ammonia plants. This eliminates special land requirement for Flare stack.
76 Not possible.
Spec optimization 'Heat shielding panels' are available nowadays, which can positioned around
Flare tip if need be. Short-term (1-3 moModerate
If HRSG/GT are located closer to Aux.Boiler & STG, then expensive
Cost- Design & interconnecting HP steam piping length can be optimized. HRSG and
77 It is already being done
Spec optimization Boiler/STG are seperated by ~100m in present plot plan. Likewise, HRSG,
Boiler and STG should be close to ISBL plant for same reason. Medium-term (3-6Low
Continuously manned buildings such as Control Room and Laboratory should
Cost- Design &
78 be sited some distance away from Ammonia plants for safety reasons (if they It is already being done
Spec optimization
are not blast-proof). QRA study will reveal recommended separation distance. Medium-term (3-6Low

As soon as land is acquired, use some portion (e.g. North area of site, which is
Cost- Design & not part of plot plan) for laydown/storage of containers & equipment which
79 Yes
Spec optimization can be stored in open, instead of leasing open yard space elsewhere for
equipment storage. Immediate (Now-1Moderate
Cooling water pump should be supplied with a Variable Frequency Drive -
Cost- Design &
80 Summer/winter - payback period is 1 to 2 years - VFD useful for energy Not possible now
Spec optimization
conservation
Cost- Design &
81 Trip system voting logic, Redundancy philosophy, SIL level=3 (TUV 6) Already incorporated
Spec optimization
 Bunching the equipment parts, Draw the layout map of equipment in
82 Schedule- Pre- warehouse. Number the equipment parts for easy identification of location Toyo to be asked as part of EW3 scope execution
construction and ease of assembly . Immediate (Now-1Low
Site-preparation for rains if project is starting in the period- 15th June to Sep
- Levelling land- Pre-grading (dependent on EC)
This is to be implemented in defining EPC Scope
83 - Make a shed- assemble the equipment (mainly static)
and Execution
- Making temporary/permanent storm water drains
Schedule- Pre- To check if temporary structures are allowed before EC
construction Short-term (1-3 moModerate
Floating of enquiry for Gratings can be prioritised. Wherever possible, can go This is to be implemented in defining EPC Scope
84 Cost-
Procurement for a standard panel size Medium-term (3-6Low and Execution
Start designing the network for construction power and water, area lighting
on the land acquired till date. Also start application and approval process for TOYO to be asked to evaluate and prpare the
85
Schedule- obtaining the construction power & water. Can be a part of early works. Can schemes upfront
Construction power connection for site be obtained based on sanction for E-31? Immediate (Now-1Moderate
Cost- Construction power and water to be provided by PCPL through the grid
86 To be evaluated and implemented in EPC scope
Procurement instead of asking EPC to get it through tankers Immediate (Now-1Moderate
Can steam driven pumps, compressors & other rotary equipments be used
Cost- Design &
87 instead of motor driven ones- can make use of the steam generated by the Not possible. Almost all equipmnet ordered
Spec optimization
plant for this purpose- provided the equipment is yet to be procured
Fire premium could be reduced by including things like Fire stop painting,
Cost- Design & This is to be implemented in defining EPC Scope
88 coating, barriers etc. if not included in scope already. To check with insurers
Spec optimization and Execution
about factors affecting fire premium Short-term (1-3 moModerate
Cost- Design &
89 Use GRE/HDPE piping for construction water Refer point No : 62.
Spec optimization
Cost- Financing,
To be considered as part of PCPL Business
90 accounting, Strategic investments from domestic / global NG players
strategy
taxation Short-term (1-3 moHigh
Optimizing method of evacuation of ammonia (TCO basis) - capex and
Cost- Design &
91 operational expenses for evacuation, storage of non-captive ammonia All Ammonia will be transferred to K1
Spec optimization
consumption

By effectively involving each person working on construction on targets and

Schedule- schedule and increasing productivity by way of making good canteen facility,
92 To be implemented throught project phase
Construction toiet facility available within premises in a direction to improve labor
happiness index, overall schedule and cost can be compressed at least by 5%. Medium-term (3-6Low
Schedule- Pre- By increasing focus on land acquistion and development, overall schedule can
93 To be immediately addressed
construction be compressed, may be at little extra cost Immediate (Now-1High
Preparation on project construction schedule based on realistic data and
Schedule-
94 involvemnet all teams involved duringt construction, will lead acceptibility orf To be implemented during EPC phase
Construction
schedule by all. Medium-term (3-6Moderate
Cost- Localisation of imported goods of high value can drastically reduce the cost to
95 Not relevant
Procurement avg 12 -15% with additional gain in taxes and duties
Cost- Design & Concept of water tank to be revisited ; i.e., RCC footing + MS Tank of 15000
96 To be studied
Spec optimization cum capacity Medium-term (3-6Low
 Precast RCC Chimney can be considered in place of regular chimney, which
Cost- Design &
97 shall be saving the cost & time. The same is executed at Dahej within 50% of To be discussed with HRSG / Aux. Boiler vendor.
Spec optimization
the cost Short-term (1-3 moLow
Cost- Design & RCC roads are recommended in the design basis. Instead, it is recommended This is to be implemented in defining EPC Scope
98
Spec optimization to have Bitumen roads Short-term (1-3 moModerate and Execution
RCC columns were recommended in the Design basis. Instead of RCC
Cost- Design & This is to be implemented in defining EPC Scope
99 columns, Structural column and beam are recommended where in there is
Spec optimization Short-term (1-3 moModerate and Execution
saving in time
Option of exploring the in house PMC as the Ammonia project is located at
Cost-
100 Taloja. Expertise from M/s ICONS can be taken suitable as per requirement in Not recommended
Procurement
specialised matters
Cost- To be studied and to be implemented based on
101 Explore the option of sourcing construction water from Borewells
Procurement Short-term (1-3 moModerate water quality

Priority for Priority for Impact

Legend: Implementation - Capex, Opex or
timeline Schedule
Immediate (Now-
1 month) High
Short-term (1-3
months) Moderate
Medium-term (3-
6 months) Low