GS 08 50208 SMDS Wax Plant Expansion PPD RevB1 PDF

GS.08.
50208
CONFIDENTIAL
SMDS New Wax Plant

Project Premise Document
GS.08.50208
CONFIDENTIAL
SMDS New Wax Plant

Project Premise Document
by
Emma McDonald, GSPA

Wong Hee Tiu, GSPA
CONFIDENTIAL
This document is made available subject to the condition that the recipient will neither use nor disclose the contents except as agreed in
writing with the copyright owner. Copyright is vested in Shell Global Solutions International B.V., The Hague.
© Shell Global Solutions International B.V., 2006. All rights reserved.
Neither the whole nor any part of this document may be reproduced or distributed in any form or by any means (electronic, mechanical,
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Shell Global Solutions is a trading style used by a network of technology companies of the Shell Group.
CONFIDENTIAL 1 GS.08.50208
Document History
Date Issue Reason for Author(s) Approved by

Change
July 2007 DRAFT Output from SMDS Jeremy Goh,
Framing SMDS
14 September Rev 0 Issue for comment Jeremy Goh, Fred Knijnenburg
2007 SMDS
Emma McDonald,
GSPA
13 February 2008 Rev A1 Updated for end of Emma McDonald, Fred Knijnenburg,
Scouting GSPA GSPA
Ahmad Nazarene Lau Teck Soon, SMDS
Kadri, SMDS Lip Piang Keuh, SMDS
Tom Wong, SMDS
Mark Pattenden, SMDS
February 2009 Rev B (1) Updated for end Wong Hee Tiu, Fred Knijnenburg,
of FED1/FED2 GSPA GSPA
(2) Updated to
include output
of Value
Engineering
Review, SMDS
DRB Meeting
on 03-11-2008
and Decision on
13-11-2008
March 2009 Rev B1 Updated with Wong Hee Tiu, Fred Knijnenburg,
SMDS Comment GSPA GSPA
Summary
The SMDS JV intends to implement a fast track project to expand their wax plant production
at their premises in Bintulu.
The objectives of the project are to:
1. Expand Production Capacity

 Granulation capacity expanded from 140 t/d to 270 t/d*
 Slabbing capacity expanded from 81 t/d to 140 t/d for all grades of product.
2. Improve plant availability & reliability
 Target industry best practice availability
 Improve cooling and packaging systems
 Remove and replace obsolete processes and systems
3. Improve Processes
 Optimise automation
 Design-in operational flexibility
 Improve HSE and asset integrity aspects
 Improve wax remelting facility
 Improve energy efficiency
* Design is 300 t/d to take into account losses, off-specs and downtime
The decision as to whether the project will be 1. an expansion/rejuvenation or 2. a new build

or 3. a hybrid of 1 and 2, also considering the aspect of warehousing, was the subject of the
options selection workshop during scouting phase. The decision was taken to proceed on the
basis of a new build wax plant with the exception of the moulder for the slabbing line - this is
to be re-located from the existing plant. Technology selection between granulation and
pastillation was explored.
The decision at the end of scouting is to build the new wax plant with new granulation
technology and to re-use the moulder for the slabbing line. It is also decided that the new
warehouse will be located off-site, and is thus removed from the scope of this wax plant
project. Basic Design Package (BDP) Rev0 was finalised and issued on this basis.
After Value Engineering Review, Decision Executive (DE) of SMDS Decision Review Board
(DRB) made decision to build the new wax plant with new granulation technology and to
expand slabbing capacity with new moulder. BDP Rev0 was revised to Rev1.
The project will start with a Scouting phase, followed by a Basic Design Package (BDP) to be
prepared during a combined FED1/FED2 phase and will further developed into a Basic
Design & Engineering Package (BDEP) in the FEED phase. Final Investment Decision (FID)
is to be requested prior to completing FEED phase, following the work-up of the +/-15%
estimate to a more accurate cost by including the vendor +/-10% estimates. The project
execution will follow. The project will be closed out with a Post Implementation Review (PIR).
The EPC phase will be fast-tracked to aim for the unit to be on stream as early as possible.
In order to meet a tight schedule, the project will take advantage of the con-current projects
underway at SMDS under the X-VM title, by utilising the synergy with regards to contracting
strategy and resources (both contractors and Shell Global Solutions).
This document outlines the project premise for this development.

Table of Contents
Document History .....................................................................................................................................1
Summary ..................................................................................................................................................2
1. Project Premises ......................................................................................................................4
1.1 Outline of Investment Proposal – Scope ..................................................................................4
1.2 Objectives .................................................................................................................................7
1.2.1 Main Objectives ..................................................................................................................7
1.2.2 Schedule/Capex Objectives ................................................................................................7
1.2.3 Opportunity Statement ........................................................................................................7
1.2.4 Value Drivers and Critical Success Factors........................................................................7
1.2.5 Business expectations ........................................................................................................8
1.3 Priorities ...................................................................................................................................8
1.4 Customer / Operator ................................................................................................................8
1.4.1 Stakeholder identification and mapping ..............................................................................8
1.4.2 Operating and maintenance practices ................................................................................9
2. Key Issues, Risks .................................................................................................................. 10
2.1 Main Issues, Investment Origin ............................................................................................. 10
2.1.1 Boundaries and Givens.................................................................................................... 10
2.1.2 Synergy opportunities: ..................................................................................................... 10
2.2 Risk Identification .................................................................................................................. 10
2.2.1 Key Risk and Opportunities ............................................................................................. 10
2.2.2 Risk framework ................................................................................................................ 10
2.2.3 Show stoppers ................................................................................................................. 11
2.3 Authority Engineering ............................................................................................................ 11
2.4 Main Changes From Previous Revisions .............................................................................. 13
3. Strategic Fit And Business Case........................................................................................... 14
3.1 Feedstock, Product And Utilities ........................................................................................... 14
3.2 Economics ............................................................................................................................. 14
4. Project Management – Organisation .................................................................................... 15
4.1 Responsibilities ..................................................................................................................... 15
4.1.1 SMDS ............................................................................................................................... 15
4.1.2 Shell Global Solutions ...................................................................................................... 16
4.2 Project Site Considerations ................................................................................................... 17
4.2.1 Synergy effects with adjacent and/or existing facilities .................................................... 17
4.2.2 General facilities requirements ........................................................................................ 17
4.3 Project Overall Schedule ....................................................................................................... 17
4.4 Project Phases ...................................................................................................................... 18
4.4.1 Project Design .................................................................................................................. 18
4.4.2 Project Construction ......................................................................................................... 18
4.4.3 Project Commissioning and Start-Up ............................................................................... 19
5. Technology ............................................................................................................................ 20
5.1 Technologies ......................................................................................................................... 20
5.1.1 Technology selection ....................................................................................................... 20
5.2 Capacities, Yields, Feed And Product Quality ...................................................................... 22
5.2.1 Nameplate capacity ......................................................................................................... 22
5.2.2 Proposed availability ........................................................................................................ 22
5.2.3 Run length ........................................................................................................................ 22
5.2.4 Turndown requirements ................................................................................................... 22
5.2.5 Feedslate and indication min and max quality ................................................................. 22
5.2.6 Product slate and quality.................................................................................................. 23
6. HSE and Sustainable Development ...................................................................................... 24
6.1 Identification of Key HSE And SD Issues ............................................................................. 24
Bibliographic Information ....................................................................................................................... 25
Report distribution.................................................................................................................................. 26
1. Project Premises
1.1 Outline of Investment Proposal – Scope
The Wax Plant Expansion & Rejuvenation project aims to:
1. Expand Production Capacity

 Granulation capacity expanded from 140 t/d to 270 t/d*
 Slabbing capacity expanded from 81 t/d to 140t/d for all grades of product.
2. Improve plant availability & reliability
 Target industry best practice availability
 Improve cooling and packaging systems
 Remove and replace obsolete processes and systems
3. Improve Processes
 Optimise automation
 Design-in operational flexibility
 Improve HSE and asset integrity aspects
 Improve wax remelting facility
 Improve energy efficiency
* Design is 300 t/d to take into account losses, off-specs and downtime
The plant consists of 2 main processing lines: hard-wax (SX100 and SX105 solidified to wax
granules) and soft-wax (SX55R, SX60M, SX70 solidified to wax slabs), including the solids
and materials handling for each line.
The decision as to whether the project will be 1. an expansion/rejuvenation or 2. a new build

or 3. a hybrid of 1 and 2, also considering the aspect of warehousing, was the subject of the
options selection workshop during scouting phase. The decision was taken to proceed on the
basis of a new build wax plant with the exception of the moulder for the slabbing line - this is
to be re-located from the existing plant. Technology selection between granulation and
pastillation was explored.
The decision at the end of scouting is to build the new wax plant with new granulation
technology and to re-use the moulder for the slabbing line. It is also decided that the new
warehouse will be located off-site, and is thus removed from the scope of this wax plant
project. Basic Design Package (BDP) Rev0 was finalised and issued on this basis.
After Value Engineering Review, Decision Executive (DE) of SMDS Decision Review Board
(DRB) made decision to build the new wax plant with new granulation technology and to
expand slabbing capacity with new moulder. BDP Rev0 was revised to Rev1.
The project scope also includes debottlenecking of upstream U-5600 to realise 270t/day to
the new wax plant. This detailed scope is defined during FED1/FED2 process modelling and
a plant test run confirmed that there are no kinetic constraints, only hydraulic. Thus the scope
includes changing of pumps and increase line-size.
New feed tanks will also be required to enable intermediate storage (and product sampling
prior to solidification) for the hard wax (currently the plant in operating in pump and run
mode). It is decided to use existing T-8412 (2,000-tonne) and to swap existing hot slops tank
T-7502 as T-8418 (2,000-tonne). Therefore another slops tank is required, and it is proposed
to build a bigger slops tank equivalent to T-8413 (5,500-tonne).
Demolition of U-8500 is also within the project scope.

The main assets that will be added are:

- New solidification building
- Wax granulation process line (vendor designed equipment including granulator and
solids handling)
- Wax slabbing process line (vendor designed equipment including moulder, solids
handling and refrigeration system for both moulder and granulator)
- Modular packaging line for slabs (vendor designed equipment)
- Modular packaging line for granules (vendor designed equipment)
- New control system
- New electrical substation
- New slops tank (5500 T) under Plant Optimisation initiative to be executed together
ith this project.
- New upstream processing equipment for slabbing and granulation lines (vessels, heat
exchangers, pumps)
- Debottlenecking in U-5600 (higher capacity pumps, piping and instrumentation)
See simplified process flow scheme below, which illustrates new and existing units.
The warehouse review and other supply-chain improvements are out of the scope of the
project; subject of separate reviews that will progress in parallel. These reviews need to
integrate the outcome of the wax plant scope definition and plot plan considerations.
SMDS X-VM PROJECT: WAX PLANT REJUVENATION AND EXPANSION

PROCESS FLOW SCHEME (PRELIMINARY): SX 70 AND SX 100 GRADES
SX 30
SX 50
U-8500 (NEW)
C-5401
REMELTING REFRIGERATION UNIT

HPC UNIT
From HPS Unit WFE STAGE I 1 2

(1-4) BL BL
U-5400
U-5500 T-8411 SLABBING LINE
SX 70 (1) SX 70 (2)
PALLETISING
& FILM
GRANULATION/ WRAPPING
WFE STAGE II 4
WFE STAGE III
(5-6)
U-5400 (7) PASTILLATION LINE
U-5400
BL BL 3
T-8412
SX 100
U-5600 Note 2
Note 1
P-841X
BL
BL BL
New Slop Tank Recycle T-7502

T-841X
Note 2
P-841X
P-750X STREAM 1 2 3 4
PHASE L S L S
TOTAL FLOW t/sd 81 81 180 180
Notes TOTAL FLOW kg/s 0.94 0.94 2.1 2.1
MW(V) or d15/4 (L) 0.812 - 0.824 -
1. Unit 5600 capacity to be increased from 225 t/d to 270 t/ d (BULK)DENSITY act kg/m3 762 884 765 (572)
TEMPERATURE 0C 90 35 125 35
2. It is proposed to utilize the existing tanks T-8412 and T-7502 as batching tanks PRESSURE bara 3.0 1.0 3.0 1.0
for the U8500 granulation / pastillation unit.
A new slop tank, T-841X with capacity equal to the existing tank T-8413, to be included in the scope
LEGEND
EXISITNG
NEW
S Page 1
1) the run down bypassing the batching storage tanks to be checked

2) rundown line connection to new slop tank in the case of both tanks full and new wax plant upset
1.2 Objectives
1.2.1 Main Objectives

The primary motivations for the project are that, firstly, the wax plant is 14 years old. As a
result it has several obsolete processes and control systems. Secondly, the hard wax
demand currently exceeds the production capacity. The forecast to grow strongly at about
5% per annum or more.
At the same time, it is also clear that several work processes, for example automation and
contingency processes, as well as HSE and asset integrity aspects such as reducing /
eliminating confined space work, can be substantially improved.
1.2.2 Schedule/Capex Objectives

The additional value that the project may deliver is very large – the un-captured value is
between US$5-9m per year from 2008 onwards. As a result, to maximise the value of the
project, the prime project driver is schedule.
1.2.3 Opportunity Statement

To increase the production capacity of the wax plant (both slabs and hard waxes) to meet
future market demand, whilst improving availability to best practice in industry.
1.2.4 Value Drivers and Critical Success Factors
Value Driver Critical Success Factors
Fast track schedule - Project Execution strategy to look for ways to bring
project online as early as possible
- Determining long lead time equipment and approaching
vendors and contractors early
- Ensuring sufficient resources (internally and external
consultants, e.g. Shell Global Solutions, contractors)
Granulation capacity - Although feed is 270 t/d on average, the capacity of the
reaches a sustainable granulators and packaging etc. should exceed 270 t/d to
output of 270 t/d compensate for any temporary downtime (design is 300
t/d)
- Designing manual contingency procedures in case of
equipment failure / malfunction
- Debottlenecking of U-5600
Minimise plant downtime - Construction of expansion give minimal interruption of

production
Slabbing capacity reaches - Again, to ensure that production can reach target
140 t/d values, contingency procedures should be designed in,
and bottlenecks eliminated by having some spare
capacity
Improvement in - Remove manual operations as far as possible/feasible

Value Driver Critical Success Factors

operational performance
Improvement / Reduction - The wax plant fire fighting and ammonia systems need
in HSE / AI-PS risk to major upgrades to meet current Group / Industry
ALARP requirements
- Remove of manual operations as far as
possible/feasible
1.2.5 Business expectations

The resultant production capacity shall meet the forecasted demand for at least ten years.
The project should be fast-tracked in order to maximise value, and should be able to achieve
availability to best practice in industry.
1.3 Priorities
Although both slabbing and granulation capacities require additional capacity as soon as
possible, if it is feasible, the capacities may be added in phases so as to meet demand for a
few years.
It has been identified that the existing upstream unit (U-5600) needs to be de-bottlenecked to
supply the required feed capacity to meet the desired granulation capacity of the project. It is
to be further explored/defined during Define (FEED) how to implement the necessary unit
upgrades and tie-ins etc (e.g. via unit shutdowns or hot-tappings).
It is confirmed that the existing SMDS utilities are sufficient to cope with the new project.
1.4 Customer / Operator

The customer and future operator of the project is SMDS.
The Shareholders are:
Shell 72%
Mitsubishi 14%
Petronas 7%
Sarawak Government 7%
1.4.1 Stakeholder identification and mapping

A high-level stakeholder identification and mapping was carried out and the list of
stakeholders and their influence on the project is tabulated below. In the next stage of the
project development, a stakeholder management and engagement plan should be
developed.
Stakeholder Drivers Interest Influence

SMDS Production capacity H H
expanded to meet
growing market
demand
Shell Global Successful project H M
Solutions
EPC Contractor Successful project H M
GPA Maximise value H M
Stakeholder Drivers Interest Influence

Malaysian Investment in the M M
Government Malaysian economy
Sarawak Investment in the M M
Government Sarawak economy
Bintulu Community Investment in the M M
community
Customers Production increased H L
to meet their demand
Regulatory bodies Safety, minimise L M
(e.g. DOE, DOSH) environmental impact
1.4.2 Operating and maintenance practices

The operating and maintenance practices will be governed by Shell standards as for the
existing SMDS plant.
2. Key Issues, Risks

2.1 Main Issues, Investment Origin
2.1.1 Boundaries and Givens

Givens for the Wax Expansion & Rejuvenation Project are:
 Granulation capacity to be increased to 270 t/d
 Slabbing capacity to be increased to 140 t/d
 Unit availability to industry best practice
 Other X-VM projects will be in development at the same time
2.1.2 Synergy opportunities:

Some synergies may be exploited with other X-VM projects:
 Continuity of project staff and organisation.
 To explore if same Shell Global Solutions and EPC contractor teams can be used
 BDP/BDEP and site specific documentation
2.2 Risk Identification
2.2.1 Key Risk and Opportunities

The preliminary risks (using TECOP) have been identified.
Commercial & Economic (Market)

 Sasol intends to expand their production capacity in 2 phases, in 2010 and 2013
 Loss of market
 New build project plus debottlenecking and utilities, control systems and logistics upgrade
gives high cost estimate (resulting in unfavourable project economics)
Technical & Organisational

 New HPS catalysts cause off-spec production / reduce production
 Long lead time for equipment (including testing) and/or building causes delays
 Delays to project increase likelihood of existing equipment failure
 Shutdowns required for construction may disrupt production
 Squeeze on resources given other X-VM projects will be in progress simultaneously
 Existing utilities not sufficient to supply new project
 Introduction of new technology (solidification process) requires a long testing period
 Delay in finding technology provider /engineering contractor
 IP contamination – technology provider /engineering contractor worked with competitor
Political, Logistics, Regulatory & Other

 Unknown regulations
 Expanded volumes puts stress on internal operational capabilities, customer service,
logistics
2.2.2 Risk framework

A risk and issues register has been started. A combined risk, issues and opportunity register
will be further developed in the Define (FEED) phase of the project, to provide a structured
approach to identify issues and define mitigation measures. This register will be updated
regularly. Reference is made to Project Value Process number 4 for generic risk
management process and template to be used.
Refer the project risk and opportunity register (kept live and updated):
https://sww-knowledge.shell.com/knowhow/livelink.exe?func=ll&objId=73614721&objAction=browse
2.2.3 Show stoppers

There are currently no show-stoppers identified for the proposed project. However, the
project risks as listed above are recognised as potential hindrance to the project development
in terms of cost and schedule.
2.3 Authority Engineering

It is recognised that the installation of the project on the SMDS premises will have an impact
on the permits and design approvals of the facilities. Under the heading of authority
engineering all requirements by local and federal authorities are identified in the Authority
Engineering Engagement Plan.
Being the operator, SMDS is the sole body that will have to apply for the necessary permits
i.e. support is needed from the SMDS organisation to ensure that the necessary contacts are
made with the local authorities. The project organisation will be responsible for all required
preparatory work.
Authority Engineering Engagement Plan

SMDS Wax Plant - Certification / Approval Engagement/Activity Consultant Tentative Individuals /Parties
Authority Engineering required expected timeline
Engagement Plan
DOSH (Kuching/KL) Safety - Certificate of First engagement to explain the Perunding Timur Q2 2009 SMDS, SGS(M),
fitness project, how many equipment items, (Kuching/KL) EPCm Contractor
etc (if required) and Consultant
Notification for construction - Update Perunding Timur Q2 2009 SMDS, SGS(M),
(send in Form E) (Kuching/KL) EPCm Contractor
and Consultant
Certified Machinery Design Approval for pressure vessels TBD Q3 2009 EPCm Contractor
and Consultant
Commissioning & Certificate of fitness for certified Perunding Timur Q3 2010 SMDS, SGS(M),
Operation of Certified machinery (Kuching/KL) EPCm Contractor
Machinery and Consultant
CIMAH report TBD TBD TBD SMDS, SGS(M),
EPCm Contractor
and Consultant
BDA (Bintulu) Local authority - building, Approval for early commencement Perunding Timur Q2 2009 SMDS, SGS(M),
sewers, overall of works EPCm Contrator and
construction - certificate Consultant
of fitness (based on
Approval for building plans (Wax Perunding Timur Q2 2009 EPCm Contractor
DOSH, DOE)
Plant) and Consultant
Certificate of Fitness for building Perunding Timur Q3 2010 EPCm Contractor
and Consultant
BOMBA (Kuching/KL) Fire - certificate of fitness Approval for modification/additional Multipline Q2 2009 EPCm Contractor
fire fighting equipment (if any) Associates and Consultant
DOE Environment - Approval Internal environmental impact and N/A Q2 2009 SMDS
for Operation aspect assessment to be carried out
by SGS(M). If no impact, submission
to DOE is not required
Customs Dept Warehouse License Approval for project N/A Q2 2009 SMDS
Excise Act Removal of goods from licensed N/A Q2 2009 SMDS

premises (product sales)
Excise Regulations Storage tank calibration & N/A Q3 2010 SMDS

certification
MIDA Tax exemption Approval for tax exemption on N/A Q2 2009 SMDS, SGS(M)
imported equipment
CIDB Levy 0.125% Construction contractor to pay levy N/A Award of Construction
Construction Contractor
Contract
SESCO Electrical Construction of new electrical N/A TBD SMDS, SGS(M) and
substation (possibly to be done by EPCm Contractor
Wax Plant Project)
2.4 Main Changes From Previous Revisions
BDP Rev0 is revised to BDP Rev1 to include following findings from Value Engineering
Review and decision by SMDS DRB:
 Slabbing capacity expanded from 81t/d to 140t/d for all grades of products
 Air Compressor
Use Standard Industry package for non-hazardous areas instead of DEP standards for
hydrocarbon environment.
 Electrical and Power supply
The electrical power supply system designed to fit for purpose, but without impacting
functionality.
 Instrumentation and DCS
Leverage on the vendor packages control systems, reducing the number of I/Os and the DCS
size.
 Others
Process simplification of the systems resulting in;
Elimination of the Lump crusher, the rebagging system, top and bottom sheets for the pallets
and the common spare pumps for the feed preparation unit (Slabber).
Reuse the existing remelter, but use MP Steam as the heat medium.
See Value Engineering Review TOR, Value Engineering Options Matrix and Wax Project
Results, below
https://sww-knowledge.shell.com/knowhow/livelink.exe/Open/96694848
The schedule is updated to accelerate the project by taking FID in early FEED phase.
See overall project schedule below

3. Strategic Fit And Business Case

3.1 Feedstock, Product And Utilities
The feedstock and utilities will be supplied by SMDS.
Feedstock SX50, SX70, SX100 and SX105 from tanks
Products SX55, SX60, SX70(s), SX100, SX105
Waste Streams Waste water

Off-spec products
Utilities Power
Cooling / refrigerant (R134a)
LP Steam
Instrument Air
Plant air
Inhibited service water - BFW (jacket and tempered water)
Potable water
Firewater
Flushing oil
Nitrogen
Effluent treatment (COCS)
3.2 Economics
Economic data are considered confidential to the SMDS(M) JV and are thus not included in
this PPD.
4. Project Management – Organisation

See below for project organisation/communication plan for scouting and FED1/FED2 phases:
4.1 Responsibilities
The current responsibilities (scouting and FED1/FED2 phases) are listed below.
Refer to the project execution plan for a more detailed breakdown of roles and
responsibilities between SMDS, SGS(M) and engineering contract (JGC Singapore).
4.1.1 SMDS
SMDS govern the project through DRBs (decision review boards) and decide on whether the
project is to proceed to the next phase. The SMDS project manager coordinates the project
development between SMDS and Shell Global Solutions.
DRB Members:
Dick Benschop Managing Director, SMDS

DRB Chairman & Decision Executive
Mark Pattenden General Manger Manufacturing, SMDS
Tom Wong Senior Manager (Operations), SMDS
Lip Piang Kueh Senior Manager (Technology), SMDS
Lam Tiong-Yong Senior Manager (Engineering), SMDS
Fiza Mohd General Manager Finance, SMDS
Chima Isilebo Vice President, South East Asia, G&P
Fred Knijnenburg Project Manager Gas Projects, GSPA
Guy De Kort GM CCE Corporate and XTL, G&P
SMDS Project team:
Liang Kok Siang Project Sponsor & X-VM Champion

Raymond Lim Business Opportunity Manager
Nazarene Kadri Project Manager
Pascal Rots Technology Focal Point
Wong Ung Kui Operations Focal Point
Steven Tan Inspection Focal Point
Angelo Marcos Instrument Focal Point
Ting Siew-Won Mechanical Focal Point
William Lim Civil Focal Point
Ting Sing Ping Electrical Focal Point
Borhan Sidi HSE Focal Point
Haja M Yoosuf Finance Focal Point
Annette Loh Procurement Focal Point
4.1.2 Shell Global Solutions

Shell Global Solutions Malaysia (SGS(M)) are leading the project in scouting and
FED1/FED2 phases, and provide key technical/HSE/contractual/legal/project expertise.
Project and technical assurance support for these phases is though project readiness
reviews at the end of each phase.
From Define (FEED) phase SGS(M) will take on role as PMC and engineering contractor,
JGC Singapore, will deliver the phase and BDEP documentation.
Shell Global Solutions project team:
Fred Knijnenburg Project Manager/Sponsor

Hee Tiu Wong Project Leader
Ashfaque Sayyad Process Integrator
Paul Raas (Contractor) Solids/materials handling
consultant
Kaka Suleman Utilities
Simon Chynoweth HSE
Thanit Kiatmontri Engineering Coordinator
Akachai Jirathunyawong Instrumentation Engineering
Shailesh Chauhan Electrical Engineering
King-Shing Lim Civil Engineering

Padmanabha Banerjee Materials Engineering
Abhijeet Bhave Process Control
Chandrakant Kamble Rotating Engineering
Dan Dominguez Mechanical Engineering
Himanshu Joshi Heat Transfer Engineering
Paul Mak Project Value Processes (PVPs)
Izzat Sharaidin Cost Estimating
Imtiyaz Hussain Planning
Zaharina Wahab Contracting and Procurement
4.2 Project Site Considerations

The plot for the new wax plant is adjacent (to the west) of the existing wax plant.
The existing building is to be used as intermediate storage for the wax products and
packaging materials.
4.2.1 Synergy effects with adjacent and/or existing facilities

The warehouse review and other supply-chain improvements are out of the scope of the
project; subject of separate reviews that will progress in parallel. These reviews need to
integrate the outcome of the wax plant scope definition and plot plan considerations.
The warehouse review includes the following items:

 Expansion of existing off-site warehouse
 Inventory management
 Printing & Packaging
 Availability of empty containers
 Warehousing requirements review
This warehouse scope is to be carried out by an SMDS internal team.
4.2.2 General facilities requirements

The cooling water and instrument air supplies have been identified as an area of potential
constraint, as is the power supply. The capacity of these utilities to cater for the project will be
designed out with air cooling and new instrument air compressor and are summarised in the
BDP.
4.3 Project Overall Schedule

An overall project schedule has been developed during scouting phase, which gives a RFSU
date of Q4 2010.
See overall project schedule below

This is based on the following assumptions:

 EPCm contracting strategy
 Implementation based on vendor information (no bench-mark data available to
confirm).
 Vendor testing period during FED1/FED2/FEED
 These tests are successful and no re-work is required.
 Vendor to provide input for Define (FEED) packages for their respective part to be
compiled by EPCm contractor
 Seamless roll-over between phases

 FEED/EPCm contractor to be bought on during FED1/FED2 with quick turn-around on
selection process and contract signing to ensure seamless transition into FEED
(subject to DRB).
 Early FID for long lead items – wax plant building, hot slop tanks. See Note on SMDS
Wax Plant – FID Date Analysis below:
This schedule will be verified/revised early FEED phase by engineering contractor.
See also the BDEP Cost Estimation Schedule submitted by engineering contractor.
4.4 Project Phases
4.4.1 Project Design

The project will start with a key investigation study by Shell Global Solutions (whilst engaging
with 3rd Party Expert), which is a high-level study to specifically address the decision on
whether to expand/rejuvenate existing plant or build a new plant. This includes:
- New plant/Greenfield site pros and cons and recommendation
- Scouting and summary of possible vendors/contractors
- Summary of possible technologies: State of the art technology vs. existing/obsolete
- High-level execution strategy
The project will start with a scouting phase, followed by a Basic Design Package (BDP) to be
prepared during a combined FED1/FED2 phase and will further developed into a Basic
Design & Engineering Package (BDEP) in the FEED phase. Final Investment Decision (FID)
is to be requested early in FEED phase to allow the detailed engineering of long lead items to
be carried out as these would constitute the critical path, following the work-up of the +/-15%
estimate to a more accurate cost by including the vendor +/-10% estimates. The project
execution will follow. The project will be closed out with a Post Implementation Review (PIR).
Shell Global Solutions will carry out the initial scouting phase work in-house whilst engaging
with vendors, and follow-on with Front End development FED1/FED2 phases jointly with
vendor and FEED with contractor.
Shell Global Solutions will act as Project Management Consultant (PMC) and technical
advisor from FEED until RFSU.
Refer also to the Project Execution Plan (chapter 10):

4.4.2 Project Construction

Construction is Brownfield. The existing plant will be in operation during the construction
phase.
Refer to Project Execution Plan (chapter 12):

4.4.3 Project Commissioning and Start-Up

Refer to Project Execution Plan (chapter 13):
5. Technology
5.1 Technologies
5.1.1 Technology selection

The wax solidification plant technology is not within existing SGS(M) skill pools or discipline
area of expertise, hence a 3rd party consultant has been engaged as the subject matter
expert for the granulation and solids/materials handling technologies. During the project this
knowledge transfer is being picked up from the Shell Global Solutions Rotating Engineering
group (GSER) who are to provide technical assurance ownership for this project.
At the scouting phase, the technology selection for the solidification of the wax was between
pastillation and granulation processing routes, From the technical evaluation of vendors, the
recommended technology selection is pastillation; however, due to unacceptability of the
pastille-type product with SMDS customers, it has been decided to continue into FED1/FED2
with granulation technology.
Due to the fact that the granulation technology of the spray tower cooling (from vendor GEA)
to produce the hard wax granules has not been applied in Shell before, a development
release procedure will be followed by SGS(M), as part of the Shell Global Solutions’ quality
manual. This development release will be signed off at the end of the Define (FEED) phase
and after wax dust explosion tests in laboratory as further explained in Technical note - dust
explosion evaluation at the wax granulation system.
See below for the development release report:
https://sww-
knowledge.shell.com/knowhow/livelink.exe?func=ll&objId=86661463&objAction=browse
For a full description of the technology selection refer to Key Investigation report (Scouting
phase) GS.08.50210:
https://sww-
and the Basic Design Package Rev1 (FED1/FED2 phase) GS.08.53060:

https://sww-
The summary of the vendor packages for the granulation line is illustrated below:
Granulation Granulation
unit vendor
package
conveying
Screening
Solids Note:
handling
vendor
2 lines - for
package bagging and also
conveying re-bagging
Silos
FIBC
conveying bagging
FFS
bagging
Materials handling
vendor package
(consortium with
Palletising FFS vendor)
conveying
Stretch
Hood
For the slabbing line, the moulder will be new will capacity of 140t/d, and the materials
handling will be under the same vendor as for the granulation line. The lesson’s learnt from
another operating plant (Nippon Seiro) in Japan) will be taken during a scheduled visit to their
operations.
Additionally there are vendor packages for a chiller unit, the slabbing cartoniser.
The stretch hood will be shared between granulation and slabbing lines.
5.2 Capacities, Yields, Feed And Product Quality
5.2.1 Nameplate capacity

Granulation: 270 t/day
Slabbing: 140 t/day
5.2.2 Proposed availability

Based on 270 TPD of Granulation (which is a result of processing 300T/D of feed with a 10%
off spec resulting in 270T/D of average production target) and 81 TPD of Slab productions
including packing and material handling of product and finished goods. The availability
figures hover between 94% and 96% based on current assumptions and data that have not
yet been verified with Vendors. Refer also to Modelling Report on Plant Availability,
Maintenance, Operability:
With SMDS decision to expand Slabbing capacity from 81 t/d to 140t/d for all grades of
product and other output from Value Engineering Review will require further modelling in
Define Phase.
5.2.3 Run length

The SMDS Malaysia’s CBP (Country Business Plan) premise is currently 4 years (statutory
shutdown for maintenance). It could well be 5 years or perhaps more in the future depending
of the outcome of discussions between SMDS and DOSH.
However, only some systems in the wax plant require DOSH inspection. If utilities are
available and there is stock in the tanks, then the plant can granulate and slab during parts of
the SMDS turnaround.
5.2.4 Turndown requirements

Turndown is not required as intermediate storage will act as buffer, i.e. wax plant will run until
tanks are empty.
However, for certain scenarios i.e. start-up when the tanks are empty, the granulation units
can run to 50% capacity, i.e. 150 t/day.
5.2.5 Feedslate and indication min and max quality
5.2.5.1 Feed stocks Specification

SX-50 SX 70 SX 100
Wax Grade SX-55R SX 60M SX 105
(L2) (M2) (H2)
TBD 90% SX 30% SX
50 50
Carbon Range C28-C40 C40+ TBD
10% SX 70% SX
70 70
Molecular Weight TBD TBD TBD 464 786 TBD
0
Congealing Point, C 47.7 53-58 66-70 68-72 97-99 102-106
0
Melting Point, C 48.8 TBD TBD 71.3 108 TBD
Density – Liquid D 15/4 0.75 0.812 0.824
3 0 TBD TBD TBD
-Solid Kg/m (25 C) 881 884 948
Liquid Dyn.Viscosity 1.8 4.9 <20
-3 2 0 TBD TBD TBD
‘ 10 Ns/m ( C) 90 90 120
0
Specific Heat, KJ/Kg C
-Liquid 2.3 TBD TBD 2.40 2.55 TBD
-Solid 2.2 2.25 2.30
0
Thermal Conductivity, W/m C
0.145 TBD TBD 0.14 0.14 TBD
(for liquid and solid)
Heat of Fusion, KJ/Kg 242.4 TBD TBD 264 264 TBD
5.2.6 Product slate and quality

As per the current SMDS product supply specifications (PSS).
6. HSE and Sustainable Development

HSE and SD aspects will be considered in the design of the unit to ensure it is in line with the
currently accepted HSE/SD polices. HSE assurance in the design is provided by identifying
and managing risks, according to the principles of risk -tolerability, ALARP and continuous
performance improvement. SD assurance for this project is based on stakeholder
identification, consultation and engagement, identification, assessment and management of
relevant issues and opportunities surrounding the project.
The project also aims to improve HSE aspects of the existing operation and processes,
particularly any manual contingency processes and workspace issues.
Refer also to the HSE Premise:

6.1 Identification of Key HSE And SD Issues

The key issues identified during scouting phase, and in-line with the project objectives, are to
increase the amount of automation while ensuring adequate attention to HFE (human factors
engineering) and to reduce or eliminate the dusty environment.
The other key issue is the ammonia inventory and the associated refrigeration systems full of
pressurised ammonia. The latest Fire Safety Review1 highlighted improvements to the
existing arrangement would be required in order to reduce the risk of personnel exposure to
ammonia to ALARP. The current dependency for personnel intervention needs be improved.
For the new build plant, the new refrigeration should be designed as per DEPs, and the
preference is to eliminate ammonia and any toxic or flammable refrigerants. The HSE risks of
the refrigeration system will be assessed as part of the Hazard and Effect Management
Process (HEMP).
HSE/SD risk identification was made during the HAZID in FED1/FED2 phase and captured in
the HSE register:
1
Refer to SMDS Bintulu Fire Safety Review report (GS.07.51298)
Bibliographic Information
This report has been classified as Confidential and is not subject to US Export
Control regulations.
Report Number : GS.08.50208

Title : SMDS New Wax Plant - Project Premise Document
Author(s) : Wong Hee Tiu GSMY-GSPA
Reviewed by : Nazarene Kadri SMDS-
GPME/6
Approved by : Fred Knijnenburg GSMY-GSPA
Content Owner : Fred Knijnenburg GSMY-GSPA
Issue Date : February 2009
Activity Code : 54012958 / 54012959 / 54012962 / 54012963 / 54300211 / 54300278
Issuing Company : Shell Global Solutions (Malaysia) Sdn Bhd
Level 19, Tower 2, Petronas Twin Towers, 50088 Kuala Lumpur,
Malaysia.
Tel. +60 3 2170 3888
Report distribution
Outside Shell Global Solutions
Company name and address E or P No. of

paper
copies
Nazarene Kadri, SMDS Bintulu E -
Within Shell Global Solutions
Name Ref. Ind. Location E or P No. of

paper
copies
Shell Research and Technology GSNL-GSXI (Reports Library) E 1
Centre Amsterdam
This report can be freely shared with all Shell Global Solutions employees.

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GS.08.

SMDS New Wax Plant

SMDS New Wax Plant

Emma McDonald, GSPA

© Shell Global Solutions International B.V., 2006. All rights reserved.

Date Issue Reason for Author(s) Approved by

The objectives of the project are to:

1. Expand Production Capacity

The decision as to whether the project will be 1. an expansion/rejuvenation or 2. a new build

This document outlines the project premise for this development.

1. Expand Production Capacity

The decision as to whether the project will be 1. an expansion/rejuvenation or 2. a new build

Demolition of U-8500 is also within the project scope.

The main assets that will be added are:

SMDS X-VM PROJECT: WAX PLANT REJUVENATION AND EXPANSION

REMELTING REFRIGERATION UNIT

From HPS Unit WFE STAGE I 1 2

New Slop Tank Recycle T-7502

1) the run down bypassing the batching storage tanks to be checked

1.2.1 Main Objectives

1.2.2 Schedule/Capex Objectives

1.2.3 Opportunity Statement

1.2.4 Value Drivers and Critical Success Factors

Value Driver Critical Success Factors

Minimise plant downtime - Construction of expansion give minimal interruption of

Improvement in - Remove manual operations as far as possible/feasible

Value Driver Critical Success Factors

1.2.5 Business expectations

1.4 Customer / Operator

The Shareholders are:

1.4.1 Stakeholder identification and mapping

Stakeholder Drivers Interest Influence

Stakeholder Drivers Interest Influence

1.4.2 Operating and maintenance practices

2. Key Issues, Risks

2.1.1 Boundaries and Givens

2.1.2 Synergy opportunities:

2.2 Risk Identification

2.2.1 Key Risk and Opportunities

Commercial & Economic (Market)

Technical & Organisational

Political, Logistics, Regulatory & Other

2.2.2 Risk framework

2.2.3 Show stoppers

2.3 Authority Engineering

Authority Engineering Engagement Plan

Excise Act Removal of goods from licensed N/A Q2 2009 SMDS

Excise Regulations Storage tank calibration & N/A Q3 2010 SMDS

2.4 Main Changes From Previous Revisions

See overall project schedule below

3. Strategic Fit And Business Case

Feedstock SX50, SX70, SX100 and SX105 from tanks

Products SX55, SX60, SX70(s), SX100, SX105

Waste Streams Waste water

4. Project Management – Organisation

Dick Benschop Managing Director, SMDS

SMDS Project team:

Liang Kok Siang Project Sponsor & X-VM Champion

4.1.2 Shell Global Solutions

Shell Global Solutions project team:

Fred Knijnenburg Project Manager/Sponsor

King-Shing Lim Civil Engineering

4.2 Project Site Considerations