Labor cost reduction of US$900K annually for LNG plant

For their Australian site, a multinational energy company wanted to gain insights in their maintenance performance and to validate their belief in a strong business case to improve the maintenance strategies for their LNG plant. The supermajor produces natural gas and is a large exporter of liquefied natural gas to other countries. The oil and gas company wanted to gain better insight into their maintenance cost and wanted to get advice on how to implement sustainable improvements on their asset performance. The focus for this Australian site was on the quality of maintenance; whether the right maintenance was allocated to the right equipment, based on prioritization and criticality of the assets. MaxGrip was brought in to do an Asset Improvement Mapping (AIM) to identify improvement potential to optimize maintenance and realize a reduction in cost.

Case study – highlights

Approach

We performed an Asset Improvement Mapping based on EAM data for the entire plant and a deep-dive analysis on ten selected equipment groups. We performed the site-level assessment based on our own measure comparison list. The list includes best practice KPIs which we use to compare the data to the expected standards. Based on the preliminary report we selected ten equipment groups that underwent a deep-dive analysis.

Results

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The outcome is a concrete improvement plan, with the low-hanging fruit specified as the first stage to improvements. The final report out also includes a substantiated business case with KPIs and Return on Investment specified. The Asset Improvement Mapping showed a ROI in three months with potential savings of US$900K annually.