Maintenance Health Check and Optimization in LNG plant results in impressive savings

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Significant savings

Cost reduction of 1,75 million US$ year on year

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Process optimization

Thousands of man-hours were saved

Getting in control of assets

One of Australia’s leading energy companies produces natural gas from wells drilled into coal seams, and then turns it into liquefied natural gas (LNG) for export. MaxGrip was asked to optimize the maintenance of the LNG plant. MaxGrip performed a Maintenance & Integrity Build Health Check and consequent optimization plan that saved thousands of man-hours worth over US$ 1.75 million year on year.

How MaxGrip adds long-term value

“The original estimation was actually exceeded, bringing total annual savings to well over U$ 1.75 million. This number only covers the man-hours. It shows that with our long track record in the Oil & Gas industry, we are able to recognize the gaps that need to be bridged and to make the changes that help realize lasting improvements.”

– Mark Mulder, VP Oil & Gas MaxGrip

Production assets for this energy company include over 2,600 wells, 24 field compression stations, six processing plants, two water treatment plants and a two-train LNG export facility. The facilities comprise two production units, each with a capacity of of 4.25 mtpa, and two storage tanks each containing 140,000 m3.

Challenge: Get in control of workload and costs

The LNG plant is operated by a staff of about 300, most of them local Australians who had worked in mining or shipping before the plant was built. MaxGrip project manager Mark Mulder explains the challenges the company was facing: “When these facilities were built in 2014, there was limited experience with LNG plants available locally.

This had resulted in a very conservative maintenance setup, generating too many and often unnecessary work orders to maintain the equipment. The workload and the costs were both too high. They asked our help to get in control.”

Better resource planning

This graph shows the total workload for the discipline Instrumentation at the LNG plant, before (left) and after the project was completed.

Approach: Asset health and optimization

With the Maintenance & Integrity Build Health Check, as developed by MaxGrip, we were able to pinpoint the problems and were able to prioritize the actions for improvement. This was summarized in a solid business case. The improvement plan was built based on a two-stage approach.

The first stage focused on fixing the basics. The project started with a review of the asset register, the safety-critical elements (SCEs), and a first benchmark and optimization of the preventive maintenance (PM) routines. In stage two the aim was to fully optimize the maintenance build in Enterprise Asset Management system IBM Maximo, complete the workload levelling process, and align all tasks with updated maintenance strategies and performance standards. MaxGrip experts worked intensively on the PM optimization of Electrical & Instrumentation and Mechanical. Job plans were rationalized and enriched work instructions. We developed a coaching plan for planning and scheduling maintenance tasks. In doing all of this, MaxGrip also created the setting for continuous improvement.

Results: Saving over 1.75 million US Dollars year on year

Would you like to know more?

Mark Mulder2

Mark Mulder

VP Oil & Gas

+31 30 747 01 38
+31 6 471 242 21
mark.mulder@maxgrip.com

The assessment of SCEs led to a drastic reduction of the workload, and to the addition of some new tasks critical to plant safety and integrity. Mark Mulder, Vice President Oil & Gas at MaxGrip, is very happy with the results: “The first stage alone resulted in savings of US$ 600,000 year on year. This number only covers the man-hours; it does not take into account the saved costs for spare parts, replaced equipment, and so on.” Stage two, the actual PM optimization project, has also yielded very good results. By simultaneously reducing the number and frequency of (rationalized) PM tasks, clustering them and enriching them with correct data for proper planning and scheduling, the company was estimated to save over US$ 1.75 million year on year. MaxGrip was asked to continue this project with the third stage: the Bills of Materials and the addition of six modifications to the system.

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