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Decision tool for major revamping of

fertilizer plants
A good number of fertilizer plants are more than 15 years old and just as many plants will reach that age
shortly. Revamping/retrofitting to make these plants fit for continuing production with improved
reliability and integrity entails a huge capital outlay and a long project cycle. The volatile situations,
existing in the areas of marketing, economics, and business viability, demand precision in the choice and
timing of the revamping. This paper deals with a systematic approach in the form of a simple decision
tool where major criteria for revamping are chosen and evaluated on a scale of high, medium, and low.
They are evaluated against cost, payout, and benefit using the same scale that leads to a decision scale.
Parameters for revamping criteria are developed and numerical values are assigned for them, as well as
for cost, payout, and benefit. These are then represented in a nomograph that transforms all calculated
values into ultimate decision rankings. The method is demonstrated with a few revamp proposals from
ammonia & urea plants to illustrate the different decisions that can be reached and supported by this
simplified decision making method.

Dr. Rangarajan S.V. Sampath

SAFCO (Saudi Arabian Fertilizer Company)

hoc approach. A methodology that will enhance


decisiveness and lead to an appropriate plan of
Introduction action is needed. This paper deals with a
method that creates a decision tool, in the form
onsequent to the introduction of

C Process Safety Management, revamp


proposals are studied presently under
the scope of Management of Change (MOC)
of a nomograph, where major criteria for re-
vamping are considered leading to scheduling
and prioritization of the proposals. The method
is demonstrated with a few revamp proposals
element and all related aspects are defined for
from ammonia and urea plants to illustrate its
obtaining approval from senior management.
effectiveness for decision making through a
This frequently leads to an accumulation of ap-
process of factual approach (Ref.1).
proved proposals with most of them appearing
to have top priority. This creates a situation
where senior management may wade through
top-priority projects with perplexity and an ad-

2004 17 AMMONIA TECHNICAL MANUAL


Methodology tank, a new set of sprayers, vapor recovery systems, etc.
Lastly, the addition/modification needs to address op-
The methodology cited in this paper has the follow- erational convenience, safety and maintainability, are to
ing steps: be considered as part of any revamping proposal. Under
1. Selection of Revamp criteria (RC) this category, we can consider providing suitable plat-
2. Consideration of each RC using High, Me- forms for approaching valves at higher elevation, reori-
dium or Low ratings and assignment of entation of valves for ease of operation, free access to
numerical values for proposal against the equipment, exit routes, drain channels and any addi-
criteria tional facilities needed for smooth operation. As a re-
3. Evaluating Revamp proposals for cost and sult, the following are considered as Revamp criteria
payout in numerical terms to arrive at (RC).
Revamp factor (RF) and matching it with 6. Mechanical Integrity (MI)
Benefit criteria (BC) 7. Process Upgrading
4. Developing nomograph using RF and BC 8. Regulatory Requirements
range values to produce a decision scale 9. Marketing Requirements
5. Referring the values of each proposal from 10. Operational Convenience
the nomograph and arriving at the decision

In the following sections, these steps are explained. Step 2: Consideration of each RC using
High, Medium or Low Ratings and
Assignment of Numerical Values
Step 1: Selection of Revamp Criteria (RC)
For evaluation of a proposal against these criteria, a
Several items are to be considered for their selec- quantitative tool is needed to transform opinions and
tion as Revamp criteria (RC) “Availability factor” of judgments into meaningful representations in the form
equipment, piping and connected components, design of numerical values. By choosing the proper parameters
aspects for safety and “Meantime between failures” for for each category, a proposal’s rating can be judged as
machinery should be of high order in order to maintain High, Medium or Low and a value of 3,2 or 1 can be
the desired productivity level. It is appropriate, there- assigned in that order. As an example, let us consider
fore to consider Mechanical Integrity (MI) that governs the parameters for Mechanical Integrity. If “Availabil-
these factors as one of the items of Revamp criteria. ity factor” is poor and the failure rate is high for com-
The next item to be considered is “Process Upgrading”. ponents appearing in the proposal, it can be concluded
This category calls for improvements needed to elimi- that MI requirement is of high order and a value of 3
nate process related problems and safety concerns in the will be assigned. In case of frequent attention through
area of flow, pressure, temperarture, volume, mass, unplanned maintenance schedule, Medium scale can be
conversion and consumption by way of introducing or considered assigning a value of 2.Otherwise; the MI
modifying equipment, relief systems, controllers, or any ranking for the proposal will fall into Low level getting
other devices. Then, elements necessary to achieve a score of 1.In case the proposal does not require MI
regulatory compliance must be considered as next item consideration, a value of 0 is assigned. In this fashion,
of revamp criteria. This may entail adding new or modi- all other Revamp criteria can be considered using the
fying existing equipment to meet current or proposed “Hi-Med-Lo” scale and assigning value of 3,2,1 or 0
standards related to quality and environmental perform- correspondingly. Table 1 provides parameters for each
ance. Local and regional regulations are so demanding RC under “Hi-Med-Lo” scale with corresponding nu-
that changes have to be planned and effected periodi- merical values. By adding the values obtained for each
cally as part of corrective/preventive actions (Ref.2). category and dividing by number of criteria that has ob-
Marketing requirements deserve serious consideration tained a value of 1 or above, the final value of RC is ob-
to sustain the company’s reputation and gain customer tained.
satisfaction for its products. As an example, different
customers may have different choices for coloring
Diammonium Phosphate (DAP). The facility should
have the capability to impart the color of customer’s
choice. This requirement may involve adding a pigment

AMMONIA TECHNICAL MANUAL 18 2004


regulations as well as proactive measures
to avoid potential incidents in HSE area
• Improved business prospects or continuity-
This relates to cost savings via energy&
specific consumption reduction, technical
excellence, enhanced competitiveness, cus-
tomer satisfaction, etc.
As done earlier, each benefit category is evaluated
with the scale of “Hi-Med-Lo” and assigned value of 3,
2 or 1 in that order. As benefit categories have cumula-
Step 3: Evaluating Revamp criteria for tive effect, the values of benefit categories are added
cost and payout in numerical terms to and the total value is called Benefit Criteria (BC).
arrive at Revamp factor (RF) and Now we have two sets of values, one for RF and
matching it with Benefit criteria (BC) another for BC. Using these values in the nomograph,
which is explained below, the decision on revamp pro-
As cost and payout are the two factors that ulti- posal can be reached.
mately speak in favor of or against any proposal, they
are considered for arriving at Revamp Factor (RF). The
cost involved and payout characteristics are judged us-
ing “Hi-Med-Lo” scale followed by assigning numeri- Step 4: Developing nomograph using RF
cal value of 3,2 or 1 accordingly. Table 2 contains the and BC range values and creating a
parameters for assessing the intensity of cost and pay- decision Scale
out and assigning numerical values.
The nomograph is drawn with 3 parallel lines.
Line1 is Revamp factor (RF) scale; Line 2 is Benefit
category (BC) scale and Line 3 is Decision scale. Refer
to nomograph provided in Attachment 1. Using Equa-
tion#1 and applying low and high values to each of
variables in it, we can get maximum value of 6 and
minimum value of 1.33 for the RF scale. Therefore the
RF scale is drawn from 1 to 6(from top to bottom). The
Benefit scale is similarly worked out by considering 1
Using these values and that of RC, a numerical ex- as the lowest value when there will be one benefit cate-
pression is worked out by dividing RC by Cost to which gory alone with lowest ranking and 9 as the highest
the value of Payout is added. So the expression for Re- value when each benefit category gets a maximum
vamp Factor (RF) is as follows value of 3. Since benefit and revamp factors have in-
RF = [(RC/Cost) + Payout] …….Equation 1 verse proportions, the Benefit criteria scale is drawn
Revamp criteria (RC) are the directly related entities from bottom to top, keeping 1 at the bottom and 9 at the
of the revamp proposals, whereas cost has inverse in- top. The minimum value of RF is aligned to the mini-
fluence on the decision process. Therefore RC/Cost ra- mum value of BC and then extrapolated. Similarly, the
tio is given primary consideration. Payout is also a di- maximum value of RF is aligned with that of BC and
rectly proportional entity influencing revamp factor so then extrapolated. When a third parallel line is drawn
it is added to the criteria-cost ratio. Since all are repre- after BC at a distance equal to the distance between RF
sented in terms of numerical value, the value of Re- and BC, it will cut the extrapolated lines. The cut points
vamp factor (RF) is also a numerical entity. are the extreme limits of this third line which is called
Secondly, the revamp factor is matched with each as Decision scale and the zone in between these ex-
one of the following Benefit Criterion. treme points leads to the decision.
• Production improvement–This relates to
enhancement of capacity factor&service
factor
• Improvement in Health, Safety and Envi-
ronment -This relates to compliance to

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Step 5: Referring the values of each cles of molecular sieve catalyst. Approximately 10% of
proposal to the nomograph for decision the tubes had been plugged. This condition has caused
making several concerns like potential limitation on plant load,
possible contamination to methanator catalyst, fear of
The nomograph is provided in Attachment 1. Frac- unplanned shut down of back end of the plant. The
tional values also can be used in RF line. The decision methanator gas treatment circuit is shown below in
scale has several segments. For each proposal, the value Fig 1.
of RF is aligned with that of BC and extrapolated to cut
the decision scale. The decision on severity and time
scale is obtained from the zone the proposal has
touched on the decision scale. The numerical values
and decision scale characteristics are arbitrarily chosen.
They can be adapted to real situations with modified
parameters as deemed appropriate. The upper segment
of the decision scale is called the “Hi-Hi” zone. For
proposals falling in this zone, execution is recom-
mended at the earliest opportunity. This is followed by Under this condition, the plant has two options:
HI zone that indicates that the proposal has to be done 1. To run until tube leak occurs and continue with
within 1 year. The next segment is medium zone. Pro- tube plugging (or)
posals falling in this region should be considered within 2. To replace the tube bundle as a retrofitting
1-2 years. The last two zones in the lower part of the measure.
decision scale are that of “Low”(Lo) and “ Low- Let us apply the methodology for this case and see
Low”(Lo-Lo). Low category proposals can be planned the outcome.
and scheduled between 2 and 3 years whereas Lo-Lo
proposals can wait for next 3 years.

Illustrations:
Two proposals for ammonia and another two for
urea plants are considered here as illustrations of this
methodology. The proposals considered for ammonia
plant are:
• Retrofitting of methanator feed heater From Table 2, the value for cost and payout is 2
• Revamping of MEA absorber for NG feed and 3 respectively. Upon using Equation 1 with the
gas and the proposals for urea plants are: numerical values assigned appropriately, the Revamp
• Flare stack for off-gas from ammonia re- Factor (RF) is: RF = 2.25/2 +3 = 4.1
ceiver Let us work out the benefit of this retrofitting pro-
• Urea reactor revamp posal.
• Production improvement = High = 3
• Improvement in Health, safety and Envi-
Illustration 1: Retrofitting of methanator ronment =Reduces process incidents = 2
heater • Improved business prospects and continu-
ity = Marginally = 1
This equipment is down stream of High Tempera-
ture Shift Converter (HTS) with the shell side receiving
gas from the CO2 absorber (after a knoc-out drum)
Therefore the Benefit Factor (BF) is = 3 + 2 + 1 = 6
along with stream of gas joining from molecular sieve
dryer during its drying operation. In its tube side enters
When RF value (4.1) from Line 1 is aligned with that of
the gas from HTS before reaching LTS. This equip-
BF (6) in Line 2 and extrapolated to cut Line 3, we can
ment had a history of frequent tube leak due to Ben
field solution carry over and erosion due to dust parti-

AMMONIA TECHNICAL MANUAL 20 2004


see that this proposal has fallen under “HI” zone cate- Illustration 3: Flare stack for ammonia off
gory that recommends retrofitting within 1 year. gas from ammonia receiver

When the Urea plant has to be shut down, the am-


Illustration 2: Revamping of MEA monia inventory will be drained and stored in ammonia
absorber for feed gas receiver. The vapor is recovered and sent for refrigera-
tion. In the past, there were occasions of ammonia va-
por release from this vessel from relief system leading
H2S and other Sulfur compounds, converted as H2S to environmental incidents. Investigation of such inci-
in the Hydrotrator, are removed from natural gas by ab- dents concluded that close adherence to Standard Oper-
sorption in MEA solution and then stripped. This sys- ating Procedures (SOP) could avoid vapor releases but
tem is designed for a maximum concentration of 30 recommended routing such vapor release to a flare
ppm of sulfur compounds. In recent times, concentra- stack. This proposal has a bearing on environmental
tion of sulfur compounds far exceeds this limit that de- compliance but, upon applying the present methodol-
mands high efficiency in the MEA system. So a pro- ogy, we get less compelling recommendation.
posal to revamp the system is raised But operational
history indicates that the system is free from corrosion
and efficient in H2S removal. Further, downstream of
MEA absorber has ZnO bed to treat any H2S slip from
MEA system.

The cost and payout values are 2 and 1 respectively


as shown in Table 2. Using in equation 1,the Revamp
Factor (RF) is arrived at as follows: RF = 1.5/2 + 1 =
1.75. Let us work out the benefit of this retrofitting pro-
posal as shown here under:
• Production improvement = No = 0
Since the costs are high and payout is long for this • Improvement in Health, Safety and Envi-
proposal, their values are 3 and 1 respectively as shown ronment = Significant = 2
in Table 2. Using Equation 1, the Revamp Factor (RF) • Improved business prospects and continu-
is arrived at as follows: RF = 1.5/3 +1 = 1.5. Let us ity = Significant for Regulatory Compli-
work out the benefit of this retrofitting proposal. ance
• Production improvement = Marginal = 1 =2
• Improvement in Health, Safety and Envi-
ronment = Marginal=1 The Benefit Factor (BF) is 0 + 2 + 2 = 4
• Improved business prospects&continuity =
Marginal = 1 From the nomograph, we can see that this proposal
has fallen under “Low” zone that recommends retrofit-
Therefore the Benefit Factor (BF) is = 1 + 1 + 1 = 3 ting to be planned within 2-3 years
When RF value (1.5) from Line 1 is aligned with
that of BF (3) in Line 2 and extrapolated to cut Line 3,
we can see that this proposal has fallen under “Low”
zone category that recommends retrofitting to be
planned within 2-3 years.

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Illustration 4: Urea reactor revamp Conclusion:
Manufacturing plants need remedy, recuperation
A highly corrosive atmosphere within urea reactor and rehabilitation through revamping/retrofitting on a
will necessitate replacement well before the failure of periodic basis. The volatile situations, existing in the
weldment or reactor liners that may have serious conse- areas of marketing, economics and business viability,
quences. On the basis of process incidents concerning demand precision in the choice and timing of such pro-
urea reactor, this methodology can be applied for plan- jects. This paper has dealt with a factual approach for
ning its revamp as shown below: enhancing decisiveness on revamp proposals. The
method described here provides consistency in the deci-
sion making process and is useful for the originator to
determine the viability of his proposal. The outcome of
this methodology will help senior management priori-
tize proposals, realize the magnitude of revamping ac-
tivities and their impact on business prospects. The fig-
ures and values cited under illustrations can be
modified according to conditions as deemed appropriate
for the application.

Values for cost and payout are 3 and 2 respectively


as shown in Table 2. Using Equation 1, the Revamp Acknowledgement:
Factor (RF) is arrived at as follows: RF = 2.6/3 +2 =
2.87. Let us work out the benefit of this retrofitting The author wishes to acknowledge the support and
proposal. encouragement given by Mr. AbdulAziz A. Al-Harbi,
• Production improvement = Highly signifi- Director General-Technical, SAFCO and thank the
cant = 3 management of SAFCO&Sabic SBU for granting per-
• Improvement in Health, Safety and Envi- mission to participate and present this paper in this con-
ronment = Significant = 2 ference. Comments from peers and line managers are
• Improved business prospects and continu- acknowledged with gratitude.
ity = Highly Significant = 3

The Benefit Factor (BF) is 3 = 2 + 3 = 8 References:

From the nomograph, we can see that this pro- 1. 1. Quality Management Principles adopted
posal has fallen under “HI” zone category that rec- for ISO 9000:2000 family of Standards
ommends retrofitting to be planned within 1 year. 2. 2. ISO 14001:1996 EMS standard

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