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Date : Thursda, March 29 th , 2023

Time : 13:15-13:59
Venue : Admin Building Room #37
Agenda : Capex : Upgrade Weak Brine Tank to Titanium Material (C23-441-005)

No. ATTENDEE DEPARTMENT SIGNATURE

1. Mr. Masaaki Tsuge Opr. Dir -----------------------

2. Mr. Akira Nakasuka Tech. Dir -----------------------

3. Mr. Toshiaki Natori Dy. FND Dir. -----------------------

4. Mr. Yuji Nishino Advisor -----------------------

5. Mr. Jiro Suzumori Advisor ------------------------

6. Mr. Alex Haradongan GMM ------------------------

7. Mr. A. Mallikharjuna Rao Dy. GMM ------------------------

9. Mr. Kus Adri MDIV ------------------------

10. Mr. Nelson Malau PDIV ------------------------

11. Mr. Yamada Toshiki POD ------------------------

12. Mr. Dede Husni POD ------------------------

13. Mr. Hendri Kuncoro EDIV ------------------------

14. Mrs. Septi Variani EDIV ------------------------

15. Mr. Ahmad Fuady EGD ------------------------

16. Mr. Anton Sinulingga CPD ------------------------

Recommendation
Ringi Committee recommends to PROCED this Capex request, subject to invite several bids,
and in parallel discuss the best material to be chosen, and to be decided before the end of April.

No DESCRIPTION Remarks
1 This Ringi Meeting, with the subject “Capex Upgrade Weak Brine Tank to Titanium
Info
Material” was chaired by Mr. Masaaki Tsuge.
2 Background:
Today’s Ringi meeting we have six items to be discussed, let us start to discuss Septi
item by item. Item no. 1. “Capex Upgrade Weak Brine Tank to Titanium Material”,
this is the 1 st meeting for Capex approval, with total budget as USD 350.000,
budgeted in Fiscal Year 2023. Total cost estimation proposed by Engineering
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Department about USD 157.000, and big variance around USD 183.000, due to
budget was made with using Weak Brine Tank Titanium price in 2012, plus price
escalation around 100%. PIC Engineering Department, please explain a brief
3 Mr. Ahmad explained, we’d like to propose the Capex for upgrading the Weak Brine Ahmad
Tank to Titanium material. The background is, currently our existing tank rubber
lining, the condition is many leaking because the relining and lining on existing tank
is not satisfied, and then it is damaged after the lining repaired. Current condition,
the existing Weak Brine Tank was replaced with a same type, it was a Carbon Steel
rubber lining in 2013, and again leak being started. And then in 2017, we renew the
lining, and much lining is damaged, and then the lining has been frequently failure
and damaged on the outer carbon steel shell. The remedial action was done in
October 2018, but it could only stand for six months and having other point of rubber
lining damaged. Now there are much potential holes on the shell, and the nozzle
was patched temporarily, and more lining is expected to be carried out. Our
proposal is we’d like to improving the existing tank to Titanium material, because
our consideration is there will be no maintenance on the tank with the Titanium
material, or maybe need very minimum maintenance on that. The budget USD
350.000, as mentioned by Bu Septi, the price taken from Jing Wei proposal in 2012,
with escalation 10 years two times. So, when we checked the difference between
2012 and current proposal, it is only the method of fabrication. In our 2012, we’re
requesting it should follow the API 620 as standard with the stamp, now Jing Wei
proposed their own Chinese standard, it will fabricate in China, even Jing Wei
coming from Malaysia. Suzumori
Mr. Suzumori asked, actually what’s the difference? Ahmad
Mr. Ahmad answered, only the standard of manufacturing, like Japanese using JIS,
and API using American standard, only the stamp, it is what we observed only the
difference from the 2012 and now.
Mr. Suzumori asked, but the construction wise doesn’t change so much.
Mr. Ahmad answered, doesn’t change so much, I think it is not so impact to the
construction load method. The planning for this installation will be carried out in
November Shutdown 2023, and just to recall data that as already mentioned that
this rubber lining tank was manufactured by Kvaerner Chemetic Canada during
startup, and we planned to upgrade in 2012, but at that time due to high cost we
again back to the original one, using carbon steel with rubber lining, We also
attached the history about the Weak Brine Tank on the last page (refer to GEF page
3), since May 2013 until October 2022, we have spent cost about USD 103.000 for
maintaining the Weak Brine Tank. That’s all information from Engineering. Anton
Mr. Anton added, actually the tank condition also now is too much potential holes on
the shell and also in the nozzle position, we have some doubt actually whether this
rubber lining condition can be extend. Also, if we faced a leakage, let say due to the
rubber lining damaged, then it will take time to evacuate tank and do repairing job,
that is another consideration actually. That’s all.

4 Comments & Questions

Mr. Hendri asked Mr. Anton, to repair this Weak Brine Tank the Plant must be stop? Hendri
Mr. Anton answered, that’s right Pak Hendri, we have to stop and also have to Anton
evacuate, because it is actually contain chlorine inside the tank.
Mr. Hendri asked, so there is no facility to, let’s say to bypassing the line or Hendri
something like this?
Mr. Anton answered no, nothing. Anton
Mr. Hendri said okay, noted Pak. That’s all. Hendri
Mr. Nelson said, so already mentioned by Pak Anton actually, based on the history, Nelson
it starting in 2013 we have some repairing continue until this time actually, we worry
for the safety reason also, the condition tank also already maybe some (damaged),
because so many times rubber lining already problem, we worry, I think we need to
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replace soon with the good material actually, to prevent again the same condition
like before when we had to repaired the rubber lining, because we understand
maybe the rubber lining is not proper, that’s why so many times we did that one
(repairment), so for safety reason, also for maintain the operation not disturb later
on because of the leakage or something, I think we have to proceed for this one to
make upgrade to Titanium. That’s all.
Mr. Suzumori said to Mrs. Septi, already Nakasuka San asked a question, the Suzumori
alternative material, did somebody has answer about it?
Mr. Ahmad said, maybe I can answer a little bit, Akira San asking about the Ahmad
alternative material such Stainless Steel and also the Glass Lining
Mr. Nakasuka said, that’s right, FRP and else. Nakasuka
Mr. Ahmad said yes, regarding lining, we have facing bad experience at that time, Ahmad
actually the rubber lining can survive with the current liquid condition, but the
problem is the how to, what we called with the maintain and how to proceed the
rubber lining itself, our experience is since 2013 even in four years, again the lining
starting to corroded again.
Mr. Nakasuka said, I am think not the lining, but the FRP tank itself, no lining, this is Nakasuka
not so big tank.
Mr. Suzumori said, or he (Nakasuka San) proposed, the Glass Lining, Glass Lining Suzumori
is quite different with rubber lining
Mr. Ahamad said yes, but as Jiro San mentioned that, also we have no experience Ahmad
with the Glass Lining, I don’t know whether we have a contractor who can build a
Glass Lining
Mr. Nakasuka said, if it’s so difficult its’ okay, but I think FRP tank is valid. Nakasuka
Mr. Hendri said yes, for FRP tank, if there’s some erosion, the FRP material will be Hendri
carry over to the system, I think, I do not know
Mr. Nakasuka said, this weak brine actually is a salt, not so aggressive chemical. Nakasuka
Mr. Mallik said, I’d like to explain a little bit, Akira San, in case of FRP tank, brine, Mallik
there will be a lot of seepage from inside to outside due to porosity, and all the
joints there will be salt precipitation will be there, in case of FRP, and in case of
lining generally, nobody is preferring the Glass Lining because repairing is also very
difficult nowadays, and also we need external agent for this, there goes of the
limitation. Nakasuka
Mr. Nakasuka said, how about Stainless Steel? Ahmad
Mr. Ahmad answered, regarding Stainless Steel, actually there is difference between
Titanium and Stainless Steel, Titanium is only single element, while the Stainless
Steel is alloy, which contains much component like Iron, Chrome and Nickle. So, the
possibility for corrosion is still could happen on the Stainless Steel, that is why in
our critical equipment in Chemical Plant we are using Titanium material, not
Stainless Steel. Anton
Mr. Anton said, sorry Pak Fuady, in addition, that is actually exit brine, that is
actually taking place after electrolysis (process) in the Electrolyzer, so the brine it is
still contained much chlorine, so I think if it’s still, then chlorine will attack the steel.
And also if FRP, because the temperature is also quite high 85 to 90 °C, so I think
maybe it is not suitable using FRP tank or Carbon Steel tank. Nakasuka
Mr. Nakasuka said yes, Carbon Steel is not good, Stainless Steel or SMO whatever,
such kind of (corrosion) resistant steel, depend on the price. Ahmad
Mr. Ahmad said, considering the price, looks like it is interesting, because the price
is only double than the rubber lining tank. Suzumori
Mr. Suzumori said, not so bad. Ahmad
Mr. Ahmad said yes, not so bad for the Titanium price, in our quotation which we get
from Jing Wei. In 2013, we were replacing the Weak Brine Tank with the Rubber
Lining Carbon Steel, the cost was USD 42.000, it is in 2013, comparing now with the
Titanium material USD 98.000 more less double, but I think with Carbon Steel with
Rubber Lining will be less than two times for now. Nakasuka
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Mr. Nakasuka said, but if we compared with the higher one, if we really use
Stainless Steel, or some Stainless-Steel alloy? Ahmad
Mr. Ahmad said, Stainless Steel maybe double than Carbon Steel, the price. Nakasuka
Mr. Nakasuka said, I don’t think this is pure Titanium, pure Titanium is very-very soft
material. Ahmad
Mr. Ahmad said, this is Titanium grade 2, not grade 1. Nakasuka
Mr. Nakasuka asked, is it some alloy? Ahmad
Mr. Ahmad answered no, only grade, Titanium normally not using alloy, it is single
material. This is Titanium grade 2, it is below than grade 1 actually, what they
offered from Jing Wei. Hendri
Mr. Hendri asked, grade 2 is normal for the chemical (use)? Ahmad
Mr. Ahmad said yes. Nakasuka
Mr. Nakasuka said, but anyway, I’d like to ask to discuss what kind of material is
suitable here and acceptable, otherwise our technology, our knowledge will not
grow, that’s the point of discussion. Dede
Mr. Dede said, sorry I don’t know the technical matter, but is it possible to use like
the SMO or Super Duplex? Hendri
Mr. Hendri said not suitable. Dede
Mr. Dede said okay, thank you Pak Hendri. I think from Procurement we just follow
up, once this is approved, we will check the vendor for the negotiation. That’s all. Yamada
Mr. Yamada said, regarding material quality, have we experienced to install
Titanium grade 2 tank in our process? Ahmad
Mr. Ahmad said, I think our existing using same material, Yamada San, Titanium,
some of the Weak Chlorine Evaporator, Generator. Yamada
Mr. Yamada said, is it Titanium grade 2 supplied by Jing Wei? Ahmad
Mr. Ahmad answered no, that was supplied by Chemetic actually, during
construction period, during startup. Suzumori
Mr. Suzumori asked, still using? Ahmad
Mr. Ahmad said yes, no problem. Yamada
Mr. Yamada said yes, let us make sure the detail of component of Titanium grade 2,
because we need to ensure the strength of the material, but anyway from
Engineering point of view the best material is Titanium for this equipment? Ahmad
Mr. Ahmad said yes, for this equipment yes. Yamada
Mr. Yamada said, okay, and this is for POD, actually is happy to see the price of
Titanium is just USD 98.000 against 10 years past still lower than before but let us
make sure that this price is really true or not. That’s all, thank you very much. Dede
Mr. Dede said, yes Yamada San, plus price actually USD 105.000, after some
negotiation become USD 98.000, but of course we will do negotiation again. Thank
you. Yamada
Mr. Yamada said okay, thank you. Kus
Mr. Kus asked Mr. Ahmad, who will install this, is it will be Jing Wei or other local
vendor? Ahmad
Mr. Ahmad answered, other local vendor, they only supply the material. Kus
Mr. Kus said okay, please be reminded that whether there is any some certification
is necessary for this new tank. Ahmad
Mr. Ahmad said yes of course, we will ask prior to the delivery of the material to the
Mill Site. Kus
Mr. Kus said, because if it’s local vendor maybe it will be more easier, because we
can ask the vendor to provide the certification, but if it’s Jung Wei maybe it will be a
little bit hard to get because Jing Wei is an overseas company. Anyway, please
mention in the PR that what kind of certification is necessary for this tank, so POD
will check whether the vendor can provide this or not. Thank you. Mallik
Mr. Mallik said, I think we are aiming for the increase of the production for incoming
this year-next year, I think so we should look for more reliable use here, rather than
repairing every year, so I think, I strongly recommend to go with this Titanium as it
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is being use at other Mill, less maintenance as well. In case of any issues some can
be solve easily repair thou, as regular maintenance. That’s all from me.
Mr. Alex said, as we reviewed already, yes, we changing to Titanium in order to Alex
improve the quality, and this is important to improve, but I’d like to remind that if the
decision will be choose Titanium, we have to be careful to review the Titanium, the
grade 2, what kind of grade 2, is that suitable for us or not, this is also we have to
make sure. The most important concern about this mostly the material, the quality of
the material, this is only a simple tank, but the specification of the material is very
important. So Pak Ahmad, as you explained, the different (with) before only the
standard, so what’s kind of standard different that could cause the price very
significantly reduced?
Mr. Ahmad said, when I looked at the JS on 2013, it is mentioned that the tank Ahmad
should be certified with the API 620, that’s what I’ve read in the description of PR,
while right now Jing Wei proposed using Chinese manufacturing standard, it is GB
standard, that is only the difference I can found on 2013 and now, Pak Alex.
Mr. Alex said, I mean the Titanium, the chemical content of the Titanium itself is Alex
different?
Mr. Ahmad answered no, the material is the same, only the method of the Ahmad
fabrication, such the welding procedure maybe, and then how to select the welder,
something like that.
Mr. Alex said okay, but as I mentioned, the material we have to make sure, because Alex
we have to avoid such kind of (problem) happened with the SMO Roll, even they
said SMO, but the standard should be correct, or we choose the Titanium grade 2,
what’s kind that one, what’s kind the chemical content of the Titanium grade 2,
please make sure for that one. That is my comment.
Mr. Suzumori said, basically I agree to fabricate a Titanium tank, but anyway in 10 Suzumori
years ago I proposed to make a Titanium tank because of the price, but the original
one was supplied by Chemetic? lifespan around 10 years, and then 2 nd one we
fabricated in Indonesia, Jakarta? And this one lifespan is 10 years, so looks like
rubber lining is not suitable for Weak Chlorine, but is the damaged of the lining, the
rubber lining has some cracks, or detaching from the shell?
Mr. Anton answered yes, that’s right Suzumori San, actually the rubber coming out Anton
from the carbon steel.
Mr. Suzumori said, so basically after we put some rubber then we need to heat up Suzumori
with steam, at that time the temperature was enough to cured the rubber, that we
cured in our Mill, we control by ourselves?
Mr. Hendri said yes, the contractor, they also bring some small boiler Hendri
Mr. Suzumori said okay, anyway I agree to the Titanium tank. Suzumori
Mr. Nishino said, after starting up this Mill until 2013 year, during 13 years many Nishino
repaired, before 2013 same things many repaired many times.
Mr. Ahmad said yes, that is why we replaced at that time. Ahmad
Mr. Nishino said, after repaired 2013 Carbon Steel Rubber Lining, after that just 4 Nishino
years again renewed, 2018 many-many times traveling, many taking much time
working load, I think Titanium is I agree at this time. Price is double, right? Titanium
and current Carbon Steel is double price, impact for cost.
Mr. Ahmad said yes. Ahmad
Mr. Nishino said okay double price, but if switch to Titanium never worry about the Nishino
much long time for repairing, so I think I agree, basically changing to Titanium.
Okay, that’s all.
Mr. Natori asked, how about the warranty? Natori
Mr. Ahmad answered, the warranty is 12 months from BL. Ahmad
Mr. Natori said, last time looks like replaced in 2017, then already some repair Natori
happened.
Mr. Ahmad said yes, but that is the different with material in 2013, that was only the Ahmad
Carbon Steel with Rubber Lining.
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Mr. Natori asked, this kind of trouble will not happen for Titanium? Natori
Mr. Ahmad said yes, we thought, cannot 100% sure. But anyway for repairing it
won’t take long time like the Rubber Lining, because just welding like other metal Ahmad
material, will be easier rather than Rubber Lining.
Mr. Natori said okay, thank you.
Mr. Nakasuka said, as I see the existing tank, the dimension is quite nothing but Natori
reasonably huge, the diameter 3.5 m, the new one doesn’t we have any difficulties Nakasuka
for transportation?
Mr. Ahmad said no, 3.6 will be fine for the transportation, height is 2.8 (m)
something plus cap, let say 3.7 m something. Ahmad
Mr. Nakasuka said okay, and why asked about the material is, in the first list (refer
to Detail Cost list table on GEF page 1), it’s said some Nozzles are made from FRP Nakasuka
or PTFE, if it’s okay why not the total tank, if the FRP leaks it should not be use in
here.
Mr. Ahmad said, let me check what is the purpose. Ahmad
Mr. Hendri said, because incoming also PVC, FRP, something like it. Hendri
Mr. Ahmad said, will connect to the existing one, I think. Ahmad
Mr. Nakasuka said, of course it’s such old pipes. Nakasuka
Mr. Ahmad said yes, but the Nozzle itself is Titanium, only the insert one is PTFE. Ahmad
Mr. Nakasuka said okay, if FRP or whatever, we can use the steel material. Nakasuka
Mr. Hendri said yes, but it is not the line actually, not suitable for me. Hendri
Mr. Nakasuka said, the liquid is same, liquid in the tank flows. Nakasuka
Mr. Ahmad explained, this one the PTFE Insert (refer to point 2.1.4 on Detail Cost Ahmad
table on GEF), actually it is not Nozzle but kind of insert pipe into the Nozzle.
Mr. Nakasuka said, I’m not sure if it always in the liquid, maybe that’s about the Nakasuka
same Suzumori
Mr. Suzumori asked, if this Nozzle damaged connected to the tank, then it shouldn’t
be FRP. Ahmad
Mr. Ahmad explained, not it’s not a FRP, actually the Nozzle itself it is Titanium, but
the insert, only the insert pipe. Hendri
Mr. Hendri added, I think insert Nozzle is just to protect the tank Nozzle. Suzumori
Mr. Suzumori, so there’s Titanium of flange Nozzle, and then insert is FRP, we can
replace FRP easily, just protection for the Titanium Ahmad
Mr. Ahmad said yes, something like that, not the Nozzle itself. For the new (tank) for
the connection maybe, between the existing one and the Titanium tank, not the
Titanium itself, no for the FRP, for the PTFE yes inside of the Nozzle. Suzumori
Mr. Suzumori said, anyway please check, this one a little bit strange. Tsuge
Mr. Tsuge said, our existing tank is Carbon Steel Rubber Lining, is that right? Hendri
Mr. Hendri said yes. Tsuge
Mr. Tsuge asked, what does it mean?, outside material, shell material is Carbon
Steel, and inside material is Rubber? Ahmad
Mr. Ahmad said yes, correct Tsuge San. Tsuge
Mr. Tsuge said okay, as the conclusion today, what is the best combination, so far
we don’t have any conclusion? Ahmad
Mr. Ahmad answered, we’re going to replace it with Titanium material, Tsuge San. Tsuge
Mr. Tsuge said, that is you are going to, but what is the best combination, outside
and inside material? Ahmad
Mr. Ahmad explained, actually for Titanium it is only one layer, there is no lining, if
Carbon Steel it is lining with rubber, if Titanium that is only single material, we don’t
need lining. Tsuge
Mr. Tsuge said, single or double it doesn’t matter, just talk the material that’s fine,
so Titanium is best for outside? Ahmad
Mr. Ahmad said yes. Tsuge
Mr. Tsuge asked, what is second, what material is second (best)? Mallik
Mr. Mallik said Teflon Lining, PTFE Lining. Tsuge
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Mr. Tsuge said no, lining is for inside material, no my question is for outside, for
shell, Titanium is best, is that right?, second is? Stainless Steel, SMO, or Hendri
something? Tsuge
Mr. Hendri said, Carbon Steel, Tsuge San.
Mr. Tsuge said okay, best is Titanium, second is Carbon, how about for lining, Hendri
inside, what is best material? Tsuge
Mr. Hendri said, I think should be Rubber. Hendri
Mr. Tsuge said, what is second? Tsuge
Mr. Hendri said, I have no idea, only Rubber mostly for this tank.
Mr. Tsuge asked, so we don’t need to consider Nakasuka San idea, about Glass, or Hendri
FRP, or something, we don’t really no need to discuss anymore? Tsuge
Mr. Hendri said yes, I think so, Tsuge San. Nakasuka
Mr. Tsuge said okay, you don’t think so. Nakasuka San are you satisfied?
Mr. Nakasuka said, I mean from the tank point of view Titanium is the best, I mean
safest, but if we discuss about cost performance Titanium has the longer lifetime,
but if we can accept shorter lifetime, we can replace 10 years after, if the price very Suzumori
cheap. Such kind of thing we have to discuss, it is easy to say it is the best, I agree.
Mr. Suzumori said, but anyway if we have a leakage, we need to stop the ClO2
Generation, the repairment is not so easy and then take time just for Rubber Lining,
put some Rubber at first, we need to repair the outside, and then put the Rubber, Nakasuka
and then need some curing time by heat. Suzumori
Mr. Nakasuka said, but we have use it 10 years or 20 years. Hendri
Mr. Suzumori said, we struggle actually. Nakasuka
Mr. Hendri said, yes 10 years, and every year we should repair it
Mr. Nakasuka said, but anyway as it is said, tank of FRP and Teflon use, I’d like to Suzumori
know how it is use, and also as Suzumori San said, the line is not Titanium. Nakasuka
Mr. Suzumori said, that is correct. Tsuge
Mr. Nakasuka said, if it’s last 10 years, why not tank itself? Hendri
Mr. Tsuge said, we will invite bids? Tsuge
Mr. Hendri said yes. Ahmad
Mr. Tsuge asked, who will be candidate? Hendri
Mr. Ahmad said, original supplier Chemetic Canada, formerly Kvaerner
Mr. Hendri said, Polyline, Elastometer, is local, Siraf Teknik Perkasa it is local, Tsuge
Harindo Mega Perkasa it is local also.
Mr. Tsuge said, okay so we can invite several bids. Another question, can we
conclude what is best for TEL, or only to discuss internal, or firstly invite bids and in
parallel ask manufacturer what is best for TEL, which is better? Before invite bids, Hendri
we can decide what is best material? Tsuge
Mr. Hendri said, direct bid and in parallel ask the other opinion for that
Mr. Tsuge said okay, please proceed in parallel. And please decided before the end
of April, please let’s do our best to make final conclusion and issue PO before the
end of April. I cannot accept Ringi every week. Delivery time only 3 months but we Hendri
shouldn’t feel that we have enough time Tsuge
Mr. Hendri said yes.
Mr. Tsuge said, considering this 10 years, we repaired a lot of times, I think if cost is
around USD 150 (thousand) to 200.000, we should select the best material, no need
to seek material which is most cheap one, no need. Please put priority on good Alex
material. Tsuge
Mr. Alex said noted.
Mr. Tsuge said that’s all.

All Ringi Committee agreed to PROCEED this request. Ringi

Committee
5 Summary:
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- The conclusion is all Ringi member recommend to proceed this Capex request, Ringi
subject to invite several bids, and in parallel discuss the best material to be Committee
chosen, and to be decided before the end of April.