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Copyright 2008 GASEX 2008. All Rights Reserved.

INTEGRITY AND RELIABILITY MANAGEMENT AT BRUNEI LNG by Benard Anthony Christian Tel: +673 3378305, Email: Benard.Christian@bruneilng.com Brunei LNG Sdn. Bhd., Lumut, Brunei Darussalam. Keywords: Integrity, Reliability, Maintenance

Abstract Brunei LNG Sdn. Bhd. (BLNG) has been in continued operation since 1972 and has built its reputation on being one of the most established suppliers of liquefied natural gas. Annually BLNG ships more than seven metric tonnes of LNG to its long-term customers in Japan and South Korea and has delivered more than 5800 cargoes (approximately 200 million tonnes) of LNG in total. BLNG strives to remain a reputable LNG supplier and this is apparent in the companys track record of never defaulting on its contractual obligations to customers for over 35 years. The BLNG plant was originally designed to service a 20-year supply commitment to Japan. This contract was extended in 1993 and now BLNG is undergoing its second major plant rejuvenation program to extend the plant life by another 20 years. Some twenty major projects under the Asset Reference Plan (ARP) are scheduled for completion between 2011 and 2013. Apart from rejuvenating and upgrading its facilities, BLNG applies a structured maintenance management program to existing plant equipment to ensure their integrity and reliability. Within BLNG, regular reviews of defined key performance indicators verify the suitability and effectiveness of the maintenance strategy, which is constantly being improved and updated. Additionally, third party audits are periodically performed at BLNG to verify the adequacy of the integrity management system being utilised. Benchmarking studies amongst Shell and non-Shell LNG plants have shown that BLNG has attained pace-setting performance in the past two years in safety, availability, reliability and plant utilisation. This reflects BLNGs commitment to sustain its top quartile performance and also be the Supplier of First Choice for its current and future customers.

Brunei LNG Company Profile Brunei LNG Sdn. Bhd. (BLNG) is located in Brunei Darussalam situated on the island of Borneo, South East Asia. BLNG is the first Asian company to export LNG and is proud of its reputation of being a world-class reliable LNG exporter for more than 35 years. BLNG is jointly owned by the Government of Brunei Darussalam (50%), Royal Dutch Shell Plc (25%) and Mitsubishi Corporation (25%). BLNG receives its feed gas from two upstream suppliers, Brunei Shell Petroleum Sdn. Bhd. (89%) and Block B Joint Venture (11%). At BLNG there are five production trains with a combined capacity of 48300 cubic metres/day and these are utilised to treat and liquefy the gas. The liquefied gas is then loaded onto ships owned by Brunei Shell Tankers and Brunei Gas Carriers, which deliver the LNG to its long-term customers in Japan (Tokyo Electric, Tokyo Gas and Osaka Gas) and Korea (Kogas).

BLNG Maintenance Strategy For improved accountability, BLNG adopts the Area Engineer concept employing approximately 70 staff and 135 full time contractors. Following this concept, the BLNG plant is divided into five main maintenance areas, namely Process, Utilities, Storage & Loading, Turnaround and Central Services. Each frontline maintenance team (i.e. Process, Utilities and Storage & Loading) has its own team of discipline supervisors and technicians (Mechanical Static, Instrument, Electrical and Rotating) led by an Area Engineer that carry out maintenance within their own area of responsibility. Major equipment turnaround is catered for by the Turnaround team with support from the front line maintenance teams whereas Central Services provide general services (e.g. scaffolding, lifting and insulation) to the entire BLNG plant. BLNGs maintenance strategy is tracked and measured via specific Key Performance Indicators (KPIs) defined under the Management of Technical Integrity and Reliability (MOTIR). MOTIRs key elements employ the Risk and Reliability Management (RRM) strategy where criticality assessments are utilised to define maintenance tasks and inspection frequencies. These defined tasks are uploaded into the BLNG Computerised Maintenance Management System (SAP PM) so that they can be planned, executed and reviewed. This methodology provides sustainable cost savings in the long-term and improves the reliability as well as the availability of the plant assets. In addition to RRM, Civil Reliability Centred Maintenance (Civil RCM) has been implemented in BLNG with the purpose of taking a proactive approach towards civil maintenance. BLNG has implemented Civil RCM to manage and safeguard the integrity of its civil assets. BLNG believes that maintenance is not regarded as a department but instead a shared stewardship of the companys assets by the entire organisation.

Risk and Reliability Management Risk and Reliability Management (RRM) is made up of four methodologies, namely: Shell-Reliability Centred Maintenance (S-RCM) which produces maintenance plans for plant equipment, Shell-Risk Based Inspection (S-RBI) which covers inspection plans for pressure containing equipment, Instrument Protective Functions (IPF) that defines the testing frequencies for safeguarding systems and, Civil Reliability Centred Maintenance (Civil RCM), which upholds the integrity of civil assets. Civil inspections are implemented via three levels at BLNG, namely Level 1 (Visual Inspection), Level 2 (Non-destructive testing) and Level 3 (Fitness for Service Calculation). Here a risk-based approach is adopted to determine the level of inspection required and the results of these inspections are used to define the Preventive Maintenance civil tasks in SAP PM. Currently the existing preventive maintenance tasks in SAP PM are being validated and updated via a S-RCM review exercise. The BLNG in-house Reliability team leads this review and is supported by the maintenance teams as well as the discipline technical authorities. Concurrently the BLNG Quality and Inspection department is carrying out a S-RBI review to fully implement its utilisation. Both the S-RCM and S-RBI reviews take into account new equipment added on via projects as well as rejuvenated plant equipment and these reviews are target for completion by 2010. IPF testing schedules have been fully implemented in SAP PM and BLNG is currently carrying out maintenance tasks in between the IPF testing intervals to further improve on the Failure to Danger (FTD) statistics in line with BLNGs continual improvement process. For Civil RCM the BLNG SAP PM database has been populated with appropriate civil tags and a baseline inspection interval set up. Currently, civil site inspections are being executed so as to optimise the maintenance plans in SAP PM.

PLAN

SAP PM

EXECUTE

UPLOAD

DEFINE TASKS AND FREQUENCY REVIEW CRITICALITY ASSESSMENT

UPDATE

RRM
Civil RCM S-RBI IPF

S-RCM

Management of Technical Integrity and Reliability (MOTIR) BLNG MOTIR comprises of multi-disciplinary Key Performance Indicators (KPIs), namely Compliance of planned inspection jobs as per S-RBI, Compliance of planned static and rotating mechanical Preventive Maintenance (PM) jobs, Compliance of planned PM jobs for inspection/overhaul of Safety Relief Valves (SRV), Compliance of planned electrical PM jobs, Compliance of planned testing of safeguarding (IPF) instruments, Compliance of planned testing of Fire and Gas (F&G) instruments, Completion of routine condition monitoring of routine condition monitoring of rotating equipment and lastly, Failure to Danger statistics on IPF, F&G and SRVs collectively. To keep focus on the key issues the definition of the MOTIR elements is revised yearly. Each MOTIR item is planned and executed by specific teams in BLNG and the results are provided to the BLNG Reliability team for compilation and reporting. Each KPI is monitored on a monthly basis and the combined results are used as input to the overall company scorecard.

Integrity and Reliability list In order to have dedicated focus on integrity and reliability items and manage the risks associated with each item, BLNG has compiled a multi disciplinary integrity and reliability list. BLNGs Head of Inspection is the custodian of the integrity list whereas the Senior Reliability Engineer is the custodian of the reliability list. By definition, integrity items are those with potential or actual events exceeding design/statutory limits whereas reliability items are related to potential or functional failure of equipment. Each item on the two separate lists has a specific action party as well as a corresponding target completion date. BLNG holds frequent dedicated sessions to review items that are listed in its integrity and reliability lists to ensure that all items are close out in order of criticality. Additionally the closeout of these items supports BLNGs business targets and ensures the overall company performance.

Focused Asset Integrity Review (FAIR) BLNG carries out a FAIR exercise once every three years with the last FAIR done in 2006 and the next one due in 2009. The FAIR is done by an external third party audit team (Shell Global Solutions) and it assesses the present management systems and the integrity of the facilities for continued safe and reliable operation. The review focuses on areas of Mechanical, Material/Corrosion, Inspection, Civil, Electrical, Fired Equipment and Instrument Engineering. All levels of BLNG management and staff support the FAIR reviews extensively via interviews, site visits/inspections, document and data reviews with the aim of achieving an accurate and realistic assessment. Recommendations following the FAIR are entered into BLNGs computerised Health, Safety and Environment management system (Omnisafe) for effective tracking and close out.

Additionally, since 2008, KPIs for asset integrity, process safety and reliability are submitted to Shell Global Solutions for benchmarking purposes across the Shell LNG plants.

Conclusions BLNG continuously adopts global best practices and implements gap analysis against current practices in line with its aspiration to achieve and sustain first quartile performance in integrity management and clearly maintain its global position as a first-class LNG plant. This approach illustrates BLNGs high level of commitment to sustain the integrity of its assets and ensure BLNGs continued high reliability whilst major projects are ongoing to upgrade and extend the life of the plant for another 20 years.