Performance Engineering for CAPEX/OPEX

Sid Ahmed Lahsene

Principal Solution Consultant
30th July, 2019
Optimizing Engineering

$100B’s/year
Engineering
Challenge

Current OPTIMIZED
Operations Operations

© 2019 Aspen Technology, Inc. All rights reserved. 3

Asset Optimization Powers the Smart Enterprise

OPERATE
Running to the limits
of performance

Asset MAINTAIN
Driving uptime through
Lifecycle actionable insights

DESIGN
Pushing the boundaries A comprehensive, holistic approach achieves
of what’s possible the highest possible financial return over the
entire asset lifecycle

© 2019 Aspen Technology, Inc. All rights reserved. 4

 Asset Optimization Digital Reference Architecture
Forecast Inform the plan
VISION
& Plan VALUE CHAIN OPTIMIZATION
Balance supply & demand

PRODUCTION OPTIMIZATION

Plant Digital Twin Plan & Schedule Assess Reliability

Optimize OPEX by mirroring asset Optimize feed, processing & products Minimize risk

Design & Debottleneck Control & Optimize Prescriptive Maintenance

Optimize CAPEX and time to market Maximize quality & performance Avoid unplanned downtime

PERFORMANCE ASSET
ENGINEERING Monitor& &
Actionable Insights Execute Execution
Automated PERFORMANCE
Collect,visualize,
Collect, visualize,analyze,
analyze,automate
automate MANAGEMENT

Produce to demand
VALUE CHAIN OPTIMIZATION
Distribute
Optimize product
distribution

DESIGN OPERATE MAINTAIN

© 2019 Aspen Technology, Inc. All rights reserved. 5
 Performance Engineering
Forecast Inform the plan
VISION
& Plan VALUE CHAIN OPTIMIZATION
Balance supply & demand

PRODUCTION OPTIMIZATION

Plant Digital Twin Plan & Schedule Assess Reliability

Optimize OPEX by mirroring asset Optimize feed, processing & products Minimize risk

Design & Debottleneck Control & Optimize Prescriptive Maintenance

Optimize CAPEX and time to market Maximize quality & performance Avoid unplanned downtime

PERFORMANCE ASSET
ENGINEERING Monitor& &
Actionable Insights Execute Execution
Automated PERFORMANCE
Collect,visualize,
Collect, visualize,analyze,
analyze,automate
automate MANAGEMENT

Produce to demand
VALUE CHAIN OPTIMIZATION
Distribute
Optimize product
distribution

DESIGN OPERATE MAINTAIN

© 2019 Aspen Technology, Inc. All rights reserved. 6
 Performance Engineering Solution Objectives
VISION

Pushing the
boundaries of Plant Digital Twin
Optimize OPEX by mirroring asset

What’s possible Design & Debottleneck

Optimize CAPEX and time to market

▪ Concurrent Conceptual Engineering ▪ Intuitive user experience

Key ▪ Industry validated, rigorous models ▪ Activated safety and sustainability
▪ One environment for Upstream, analysis
Capabilities Midstream and Refining ▪ Single economic model across
▪ Lifecycle Dynamic Modeling the lifecycle
© 2019 Aspen Technology, Inc. All rights reserved. 7
Asset Optimization Strategy
OPERATE
Running to the limits
of performance

MAINTAIN
Asset Driving Uptime with
Lifecycle Actionable Insights

Pushing the boundaries

of what’s possible
DESIGN

© 2019 Aspen Technology, Inc. All rights reserved. 8

Challenges Addressed by Performance Engineering in Refining
High energy Sub-par Operator Site Level
Environmental liability
consumption competency
GAS PLANT

Gas Plant Unit Level

Non-compliance &
CDU plant shutdown NAPTHAReformer
REFORMER
ATMOSPHERIC
Low throughput, yield Insufficient H2, BTEX
DISTILLATION
& off- spec products production
Inaccurate plan
VACUUM NAPTHA ISOMERIZATION
DISTILLATION HYDROTREATER UNIT
Heat Exchanger
Fouling ISOM
Suboptimal operations
GASOLINE Inaccurate plan
HYDROTREATER GASOLINE
BLENDING
FCC
KEROSENE
HYDROTREATER0
Low feedstock flexibility, catalyst
effectiveness & throughput
Inaccurate plan DIESEL
HYDROTREATER
FLUID CATALYTIC
Coker
CRACKER

Inaccurate measurement Hydrocracker

of coke production HYDROCRACKER Low feedstock flexibility &
DISTILLATE
suboptimal operation BLENDING
Inaccurate plan
COKER

High revamp CAPEX Long turnaround cycles Ensuring safety

© 2019 Aspen Technology, Inc. All rights reserved. 9
Use Cases of Performance Engineering in Refining
Energy Optimization Operator Training Emissions Reduction Site Level

GAS PLANT

Sulfur: Unit Level

Avoid Fines &
NAPTHA
Shutdown Reformer:
REFORMER
ATMOSPHERIC CDU:
DISTILLATION
Optimize Yield Optimize H2, BTEX;
Update plan
VACUUM NAPTHA ISOMERIZATION
DISTILLATION Heat Exchangers: HYDROTREATER UNIT

Monitor HX ISOM:
Fouling Optimize operating
conditions
GASOLINE
HYDROTREATER
Update plan GASOLINE
BLENDING
FCC:
KEROSENE
HYDROTREATER0
Evaluate feedstock
Select Catalyst
Update plan DIESEL
HYDROTREATER
FLUID CATALYTIC
CRACKER
Coker:
Predict coke production Hydrocracker:
HYDROCRACKER Evaluate Feedstock DISTILLATE
BLENDING
Optimize operating severity
Update plan
COKER

Plant Improvement
Turnaround Cycle Time Safety Validation
CAPEX
© 2019 Aspen Technology, Inc. All rights reserved. 10
Value from Performance Engineering for Refineries
Energy Optimization Operator Training Emissions Reduction Site Level
Save 2% to 10% Save
Save20
20days
Daysduring
Duringstart-up
Start-up Avoid Liability
Avoid liability
GAS PLANT

Sulfur: Unit Level

$0.02/ Avoid Fines &
BOE Shutdown NAPTHA
Reformer:
REFORMER
$0.15/
ATMOSPHERIC CDU: $0.2/
DISTILLATION
barrel Optimize Yield Optimize H2, BTEX;
barrel
Update plan
VACUUM NAPTHA ISOMERIZATION
DISTILLATION Heat Exchangers: HYDROTREATER UNIT
$0.1/ Monitor HX ISOM:
barrel $0.05/ Optimize operating
Fouling barrel conditions
GASOLINE
HYDROTREATER
Update plan GASOLINE
BLENDING
FCC:
KEROSENE
HYDROTREATER0
$0.25/ Evaluate feedstock
barrel Select Catalyst
Update plan DIESEL
HYDROTREATER
FLUID CATALYTIC
CRACKER
$0.05/ Coker:
Predict coke production Hydrocracker:
barrel
$0.2/
HYDROCRACKER Evaluate Feedstock DISTILLATE
BLENDING
barrel Optimize operating severity
Update plan
COKER

Plant Improvement Turnaround Cycle Time Safety Validation

+5-10%
CAPEX Throughput
+5% Throughput +3 Days Uptime 50%
50% Reduction in Flaring
reduction in Flaring
© 2019 Aspen Technology, Inc. All rights reserved. 11
Success Stories – Using Performance Engineering for Refining
Energy Optimization Operator Training Emissions Reduction Site Level
Save 2% to 10% Save
Save20
20days
Daysduring
Duringstart-up
Start-up Avoid Liability
Avoid liability
GAS PLANT

Unit Level
$0.02/
BOE NAPTHA
REFORMER
$0.15/
ATMOSPHERIC $0.2/
DISTILLATION
barrel barrel
VACUUM NAPTHA ISOMERIZATION
DISTILLATION HYDROTREATER UNIT
$0.1/
barrel $0.05/
barrel
GASOLINE
HYDROTREATER GASOLINE
BLENDING
KEROSENE
HYDROTREATER0
$0.25/
barrel
DIESEL
HYDROTREATER
FLUID CATALYTIC
CRACKER
$0.05/
barrel
$0.2/
HYDROCRACKER
DISTILLATE
BLENDING
barrel
COKER

Plant Improvement Turnaround Cycle Time Safety Validation

+5-10%
CAPEX Throughput
+5% Throughput +3 Days Uptime 50%
50% Reduction in Flaring
reduction in Flaring
© 2019 Aspen Technology, Inc. All rights reserved. 12
 Challenges in Engineering Optimization
Achieve Optimum across multiple variables and collaboration across roles

Production
R&D
Engineer

Process YIELDS INNOVATION Planner

Engineer
Lost Opportunity
OPERABILITY PROFITABILITY

Operator
Mechanical
Engineer CAPITAL EFFICIENCY ENERGY EFFICIENCY

PROJECT EXECUTION SAFETY & ENVIRONMENT Energy

Cost Specialist
Estimator

Safety
Equipment
Specialist
Specialist

© 2019 Aspen Technology, Inc. All rights reserved. 13

Performance Engineering: Pushing the Boundaries of What’s Possible

CAPEX

Process Plant Operations

Development Debottlenecking Optimization
Conceptual Planning
Design Update

Basic Operator
Engineering Performance Engineering Training

Economic Energy
Evaluation Management
Equipment Safety & Reliability
Design Environmental Analysis

OPEX

© 2019 Aspen Technology, Inc. All rights reserved. 14

Performance Engineering: Best Practices Across the Lifecycle
Push
Performance
Boundaries
CAPEX
Asset Optimization
Process Plant Operations
Development Debottlenecking Optimization
Process Optimization
Conceptual Planning
Design Update
Concurrent
Basic Operator
Engineering Performance Engineering Training
Stand Alone
Economic Energy
Evaluation Management
Equipment Safety & Reliability
Design Environmental Analysis

DESIGN Path to Value OPEX

© 2019 Aspen Technology, Inc. All rights reserved. 15

Performance Engineering: Best Practices Across the Lifecycle
Aligning data and
Accelerate research
models for sustained
to engineering
value
Concurrent simulation CAPEX Collaboration across
& analyses engineering and
planning
Process Plant Operations
Development Debottlenecking Optimization
Conceptual Planning
Design Update

Interdisciplinary Basic Operator Operations training

collaboration Engineering Performance Engineering Training across asset lifecycle

Economic Energy
Evaluation Management
Equipment Safety & Reliability
Design Environmental Analysis Demand & supply
Lifecycle economic
side energy
modeling
optimization
OPEX
Equipment Design for Safety,
optimization in asset Reliability &
context Environmental
© 2019 Aspen Technology, Inc. All rights reserved. 16
 Performance Engineering: Best Practices Across the Lifecycle
Aligning data and
Accelerate research
to engineering 3 models for sustained
value
Concurrent simulation CAPEX Collaboration across
1 & analyses engineering and
planning
Process Plant Operations
Development Debottlenecking Optimization
Conceptual Planning
Design Update

Interdisciplinary Basic Operator Operations training

collaboration Engineering Performance Engineering Training across asset lifecycle

Economic Energy
Evaluation Management
Equipment Safety & Reliability
Lifecycle economic Design Environmental Analysis Demand & supply
modeling 2 side energy
optimization
OPEX
Equipment Design for Safety,
optimization in asset Reliability &
context Environmental
© 2019 Aspen Technology, Inc. All rights reserved. 17
 Performance Engineering: Best Practices Across the Lifecycle
Aligning data and
Conceptual Design 3 models for sustained
value
Concurrent simulation CAPEX
1 & analyses
Operations
Optimization
Energy Management Conceptual
Design

Performance Engineering
Operations Optimization
Energy
Management
Demand & supply
2 side energy
optimization
OPEX

© 2019 Aspen Technology, Inc. All rights reserved. 18

 Performance Engineering: Best Practices Across the Lifecycle

Conceptual Design
Concurrent simulation CAPEX
1 & analyses

Energy Management
Demand & supply
2 side energy
optimization
Performance Engineering
Operations Optimization
Aligning data and
3 models for sustained
value

OPEX

© 2019 Aspen Technology, Inc. All rights reserved. 19

1 | Conceptual Engineering Challenge: Enable Collaboration
Process Simulation Equipment/Energy Cost Estimation

Takes Weeks

Limits Collaboration

© 2019 Aspen Technology, Inc. All rights reserved. 20

1 | Concurrent Conceptual Engineering

Economic Analysis Energy Analysis Equipment Design

© 2019 Aspen Technology, Inc. All rights reserved. 21

 1 | Concurrent Conceptual Engineering
Activated
Refinery Models Economic
Analysis

Activated Energy
YIELDS INNOVATION
& GHG Analysis
Operations
Optimization
OPERABILITY PROFITABILITY Activated
Exchanger
Design & Rating

CAPITAL EFFICIENCY ENERGY EFFICIENCY

Dynamic
Modeling Studies Process Safety
PROJECT EXECUTION
Analysis
SAFETY & ENVIRONMENT

Environmental
Emissions Solids & Polymer
Reduction Modeling

© 2019 Aspen Technology, Inc. All rights reserved. 22

1| Customer Success Concurrent Conceptual Engineering

10-30% CAPEX
50% Time Saving
savings in Concept Selection to
via concurrent Accelerate Time to Market
conceptual design

Reduced CAPEX Dow add capacity of $65

by $28M in ethane million/year with rigorous
recovery unit with Shell & Tube modeling and
aspenONE Eng Aspen Plus

$30M CAPEX Savings

100MBPD
in Oil & Gas expansion
project and increased production increase
safety from improved resid
hydroprocessing

© 2019 Aspen Technology, Inc. All rights reserved. 23

1| The Path to Digital Transformation – Conceptual Design
Site Wide Push
Optimization Performance
5%-30% CAPEX
Boundaries

Asset Optimization
Concurrent
Conceptual Eng.
5%-25% CAPEX
Process Optimization

Activated/Integrated Concurrent
Workflows
5%-20% CAPEX

Stand Alone
Simulation
Modeling
5%-10% CAPEX

DESIGN Path to Value

© 2019 Aspen Technology, Inc. All rights reserved. 24

 Performance Engineering: Best Practices Across the Lifecycle

Conceptual Design
Concurrent simulation & CAPEX
1 analyses

Energy Management
Demand & supply
2 side energy
optimization
Performance Engineering
Operations Optimization
Aligning data and
3 models for sustained
value

OPEX

© 2019 Aspen Technology, Inc. All rights reserved. 25

2 | Demand-Side and Supply-Side Energy Management
Utilities Specialist Fuel Power

Utility System

Fuel

Optimize process
Assumes process is given
&
utilities together
Prize: 3-30%
Process Engineer energy Process Process Process Process
A B C D
savings Product

Side- Feed
Product
Product
Plants

Assumes utilities are given

© 2019 Aspen Technology, Inc. All rights reserved. 26

2 | Energy Management Opportunity: 3-30% Energy Savings
Typical Energy Savings*

5-20% Total energy

3-5% 2-10% savings:
2-10% 3 - 30%**

100% 75-90%

Energy Efficiency Solutions

Current energy Design Planning & Performance Advanced Future energy

use Scheduling Management Process use
Control

Sequencing varies based on priorities

* Typical savings based on 26 energy efficiency case studies

** Total savings depends on overlap & synergies

© 2019 Aspen Technology, Inc. All rights reserved. 27

2 | Best Practice: Energy Management: Demand Side and Supply Side

Real Time Energy

Integrated Utilities Planning Energy monitoring via KPIs
Optimization

Supply Energy analysis -

identifies opportunities to
reduce energy costs

Demand

© 2019 Aspen Technology, Inc. All rights reserved. 28

2 | Customer Success in Energy Management
$50 million/year Improved site wide energy
energy cost saving efficiency by 97MW and
via Demand side and Supply achieved cost savings of 140
Side Energy Optimization Million RMB/year
YANGZI

$19M+ / yr Profit
$60-80 million energy Improvement through
savings realized demand side energy
via aspenONE Engineering optimization

20% energy saving 1.5% energy cost

in Hydrotreater Unit reduction without
better energy recovery capital investment through
closed loop utilities optimization

© 2019 Aspen Technology, Inc. All rights reserved. 29

2 | The Path to Digital Transformation – Energy Management
Demand & Supply Push
Side Optimization Performance
3%-30% Savings Boundaries

Asset Optimization
Process Energy
Optimization
3%-20% Savings
Process Optimization

Activated & Concurrent

Integrated Workflows
3%-15% Savings

Stand Alone
Simulation/Modeling
3%-10% Savings

DESIGN Path to Value

© 2019 Aspen Technology, Inc. All rights reserved. 30

 Performance Engineering: Best Practices Across the Lifecycle

Conceptual Design
Concurrent simulation & CAPEX
1 analyses

Energy Management
Demand & supply
2 side energy
optimization
Performance Engineering
Operations Optimization
Aligning data and
3 models for sustained
value

OPEX

© 2019 Aspen Technology, Inc. All rights reserved. 31

3 | Challenges in Operations Optimization

Production Planning Process Engineering Plant Operations

© 2019 Aspen Technology, Inc. All rights reserved. 32

3| Customer Successes
in Engineering Models to Support Operations

3-8% capacity increase & $750M cumulative benefit

3-5% reduced energy with Hydrocarbon Process
consumption with Asset Optimization across the
Optimization business

Increased profits by 7-10% production

$ 36 MM/Year increase
with online Aspen Plus
from improved reactor model of LDPE tubular
productivity reactor

Increased reactor 15% reduction in

yield by 40% steam use in an
Ethanolamine plant with
for Isomerization Unit Aspen Simulation
Workbook

© 2019 Aspen Technology, Inc. All rights reserved. 33

3 | The Path to Digital Transformation – Operations Optimization
Planning Model update & Push
Real-time Optimization Performance
3% - 10% Savings Boundaries

Asset Optimization
Online Performance
Monitoring
3% - 8% Savings Process Optimization

Offline On-Demand
Analysis Concurrent
2% - 5% Savings

Stand Alone
Simulation Modeling
2% - 3% Savings

DESIGN Path to Value

© 2019 Aspen Technology, Inc. All rights reserved. 34

 Performance Engineering: Best Practices Across the Lifecycle

Conceptual Design
Concurrent simulation & CAPEX
1 analyses

Energy Management

2 Demand & supply side

energy optimization
Performance Engineering
Operations Optimization
Aligning data and
3 models for sustained
value

OPEX

© 2019 Aspen Technology, Inc. All rights reserved. 35

 Challenges in Engineering Optimization
Achieve Optimum across multiple variables and collaboration across roles

Production
R&D
Engineer

Process
CAPEX
YIELDS INNOVATION Planner
Engineer
Process Plant Operations
Development Debottlenecking Optimization
Conceptual
OPERABILITY Planning
PROFITABILITY
Design Update

Operator
Mechanical
Basic Operator
Engineer
CAPITAL EFFICIENCY
Engineering Performance Engineering
ENERGY EFFICIENCY
Training

Economic Energy
Evaluation Management
Equipment Safety & Reliability Energy
Cost PROJECT EXECUTION
Design Environmental
SAFETY
Analysis
& ENVIRONMENT Specialist
Estimator

Lost OPEX
Safety
Equipment Opportunity Specialist
Specialist

© 2019 Aspen Technology, Inc. All rights reserved. 36

 Performance Engineering: Customer Experiences
Process $750M Production
R&D 18 months cumulative Engineer
ahead of schedule benefit due to RTO

Process
10-30% CAPEX Saved $550M by
optimizing
Capital savings Planner
Engineer upstream assets
Process Plant Operations
Development Debottlenecking Optimization
Conceptual Planning

What if all assets continuously improved their

9% Improvement
Mechanical
Design Update

Operator
Reduced

performance with
Engineer
less expertise…
in engineering
Performance
efficiency
Basic
Engineering
Engineering
Operator
Training
startup
time for greenfield

Economic Energy
Evaluation Management
Equipment Safety & Reliability Energy
50% Time Saving
Cost Specialist
Design Environmental Analysis $50M/year Energy
Estimator
in concept
selection cost savings

OPEX
$63M benefit due to $30M CAPEX Safety
Equipment savings
debottlenecking Specialist
Specialist & safer design
© 2019 Aspen Technology, Inc. All rights reserved. 37
Pushing the Boundaries of What’s Possible

© 2019 Aspen Technology, Inc. All rights reserved. 38

Autonomously push
equipment to safe
operating limits of
performance

© 2019 Aspen Technology, Inc. All rights reserved. VISION 39

Redefine what’s possible
by embedding knowledge
in the asset, to reduce
dependency on
costly expertise

© 2019 Aspen Technology, Inc. All rights reserved. VISION 40

Break functional silos
with accurate, role-based
asset information that
accelerates
profit-impacting
decisions

© 2019 Aspen Technology, Inc. All rights reserved. VISION 41

Challenge traditional
compromises while
pursuing peak
performance and
minimal risk

© 2019 Aspen Technology, Inc. All rights reserved. VISION 42

Democratize the power held
by experts, empowering
less experienced users
with guidance on
optimal design

© 2019 Aspen Technology, Inc. All rights reserved. VISION 43

Redefine the possible by
evaluating thousands of
design options for the best
return on investment,
quickly and efficiently

© 2019 Aspen Technology, Inc. All rights reserved. VISION 44

AspenTech Performance Engineering Vision

Accurate & sustaining Multi-disciplinary

hybrid models
MACHINE SYSTEMS
HIGH LEARNING THINKING HIGH
PERFORMANCE PERFORMANCE
MODELS COLLABORATION
CAPEX

Performance Engineering

AI and cognitive Real-time asset

guidance insights
OPEX
HIGH HIGH
PERFORMANCE PERFORMANCE
DESIGN KNOWLEDGE EQUIPMENT
IIOT
AUTOMATION

© 2019 Aspen Technology, Inc. All rights reserved. VISION 45

Parting Thoughts

There is opportunity to significantly improve the

performance of your assets in CAPEX and OPEX cycles
saving capital, improving margins with inherently safer and
reliable plants

Engage with our team to map out how Performance

Engineering can support your Smart Plant journey

© 2019 Aspen Technology, Inc. All rights reserved. 46

 Thank you

© 2019 Aspen Technology, Inc. All rights reserved. 47