Pasadena Refining System

Refining the processPasadena Refining SystemÔÇÖs Capital program follows a strong set of management principles based on accountability and anticipating potential problems, Keith Regan reports. Like other petroleum refiners, Pasadena Refining System, Inc. (PRSI) of Pasadena, Texas, was facing a mandate from the Environment Protection Agency (EPA) to produce gasoline with lower sulfur content. After evaluating its options, PRSI chose to build an S Zorb unit to facilitate this process. Based on technology developed by and licensed from ConocoPhillips, the Pasadena facility became the first built by anyone other than COP, which posed several potential concerns.┬á  The $100 million project, which also required the company to demolish an old reformer unit to make room, quickly took on a life of its own, says Troy Champeaux, PRSI engineering manager and S Zorb project director, who joined the company in 2005 when the S Zorb Sulfur Removal Technology (SRT) project was still on the drawing board. He brought with him a strong management style that involves extensive pre-project work to anticipate and plan for potential problems and to assign responsibility for all the various components of a project.ÔÇ£IÔÇÖm a big advocate of front-end loading,ÔÇØ Champeaux says. ÔÇ£I strongly believe that once you commit to something, you go ahead and front-load the work to remove or mitigate all the identified threats, exploit the opportunities and overcome the weaknesses with the adjustments necessary, in addition to acquiring and making available the strengths.ÔÇØThe proof that the months of up-front work (in addition to a vested and trained commissioning group) were worthwhile lies in the unitÔÇÖs quick incident-free startup and immediate production of quality product. Within two and a half weeks of the completion of construction/turnover for pre-commissioning, the new S Zorb, along with all the associated infrastructure, was operating as laid out in the specs. The facility is now producing at a rate of 34,000 to 40,000 barrels per day of fuel that meets or exceeds the current EPA guidelines for gasoline sulfur content, and it has the capability of producing even lower levels as the environmental standards are tightened further over time. Though other technologies exist for removing sulfur from fuels, the S Zorb technology was chosen for its cost effectiveness, due to its energy consumption, hydrogen consumption and minimal impact on the octane levels of the refined fuel, Champeaux says. The project came together despite a number of potentially devastating delays, most notably on the labor side. The project was well under way when reconstruction work in the aftermath of Hurricane Katrina began to beckon workers from Texas to the Gulf Coast, where the chance to make quick and good money was enticing for experienced oil refinery workers. Champeaux and his team had anticipated that workers might be tempted to go elsewhere, however. Although they didnÔÇÖt expect a hurricane on the scale of Katrina to strike, they knew that each year refinery turnaround workÔÇöin which refinery owners need quick repairs and upgrades to their facilities, for which they are willing to pay a premiumÔÇöbecame available to the oil industry that could poach workers. Pasadena responded in several ways. First, the labor agreements on the project all had early completion bonuses and other incentives built in. The company also made sure workers were well taken care of in other ways, with field workers assured of a cool, sheltered place to eat lunch during their shifts, safe places to store their belongings and a professional-style office and locker facility for supervisors being among the investments PRSI made to keep workers on the job. ÔÇ£Turnover is always a big concern on a long-term project,ÔÇØ notes Champeaux. ÔÇ£Basically, we had anticipated the needs and expectations of the workers. We had and have received many compliments from our contract folks, saying that this was one of the best jobs theyÔÇÖd had, and I feel that supported the success of the job as shown in the project scorecard, turnover being one of these successes. People get tired of coming to the same place, if the distance between the parking lot and the workplace is too far, if thereÔÇÖs no communication, if thereÔÇÖs never recognition, and so forth. If you provide some amenities that are different from your competitor, theyÔÇÖre less likely to stray, because they know theyÔÇÖre being taken care of. We didnÔÇÖt want to invest time and effort hiring a lot of talented people and then have them leave for other opportunities, such as turnaround projects. We paid a lot of attention to the safety and environment they worked in, the communication aspects of their accomplishments, and their surroundings.ÔÇØIn addition to labor, Champeaux also recognized early on that the project would require PRSI to rely heavily on subcontractors and partners, which added to the complexity of timing and communications, including details such as whom to notify when a large piece of the steel superstructure would be trucked to the site. For starters, the company made sure to choose a local contractor for the main part of the work, tapping Texas-based Fluor Enterprises for the work, including the process and front-end engineering, detailed design, procurement, and some construction management services.PRSI also worked to integrate a team of smaller contractors into a mini-consortium so that it could more effectively work with local companies that supplied core-knowledgeable employees. An integrated project management team was created with a variety of different talents from different companies. This required more up-front teamwork and integration, but it really paid off.That team was closely involved in the vetting process before the work began, which included a formal RACI (responsible, accountable, consulted, informed) matrix (included in the contracts as coordination protocol) for major parts (threats) of the project, such as commissioning and startup activities, in addition to tracking foreign-made components as they were shipped to and across the United States. That project approach was an extension of ChampeauxÔÇÖ overall management style. While the emphasis on identifying who is responsible for what and trying to anticipate problem areas can be a switch for some workers, most embrace the approach because it aligns the organization and integrates all employees into the plan, with a result that defines accountability, responsibility and, most importantly, purpose at individual levels. Champeaux believes everyone wants to do a good job. ÔÇ£When you do all the work up front, you flush out the threats and weaknesses early. ThereÔÇÖs a tendency for it to be overwhelming, but the key is not to sweat the small stuff,ÔÇØ Champeaux says. ÔÇ£YouÔÇÖre just focusing on what might become a crisis in the future. What comes up may not be exactly what you planned for, but the fact that you considered the possibilities usually means youÔÇÖre more prepared.ÔÇØ┬á