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DecommissioningChemicalPlantsAprovenroadmap
ExecutiveSummary
The current economic and sociopolitical environment has made product lifecycles of chemicals much shorter. Also cost pressures,
regulatorypressures,influenceofnonstateactorsandchangingmarketgeographies,meanthatmanufacturingplants(examplesare
chemical process plants, Oil & Gas facilities, hydrocarbon processing plants and similar) need to be shuffled around, shut down or
shifted at a much higher frequency than in earlier years. This article is a primer on how company managements can handle this
without getting overwhelmed by the complexities of these projects. This can happen because quite a few company managements
maybeveryskilledandversatilewhensettingupnewplants,butmaybeinexperiencedwhiledoingthereverse.

Whydecommission?

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Therehasbeenachangeintheeconomicenvironmentintheworlddue
to various factors such as technological advancement in
communications, transport and policies of states such as low entry
tariffs, encouragement for foreign direct investment, tax incentives,
etc. The product life cycle undergoes a change when an external
environment changes. If we look at events in the last few years, it
becomes clear that the economic boom and bust cycle happens much
faster,unlikeinthepast,whereplantscouldadjusttotheenvironment
over a period of a decade or so. In the present economic climate,
there are several times when plants need to be decommissioned. It
could be because of technological obsolescence, or due to various
regulatory, taxation or cost pressures, or even due to pressures from
thirdparties.Suchasituationmayalsoariseduetoabuyout,ordue
tochangeinthemarketgeography.Inallthesecases,thereisaneed
todecommissionanexistingplant.Thefixedassetsneedtobeutilized
for alternate products or simply disposed off to recover part of the
investment.Alternatively,theycanberelocatedtoanewplace,toset
up a new facility, which may be geographically, even several
thousands of miles away. Typical examples would be of a plant that
may be sold off in the US to a Chinese company and the new owner
may want to shift it from North America to China. Or an Indian
entrepreneur may want to shift a plant from a congested urban
location, to a new industrial area in another state. While we have
always heard of these cases, the fact is that the frequency of these
events happening has increased and will continue to increase as the
economy becomes more and more fastchanging and globally
integrated.

Thecommonthreadamongstallthesecasesisthataplant(orplants)istobedecommissioned.
Decommissioningaplantinthechemical,pharmaceutical,hydrocarbonprocessingandsimilarindustriesismuchmorechallenging,
than other in sectors like engineering or automobile, because of the nature of the chemicals handled in such plants. Many of these
may be explosive, toxic or in other ways harmful to the environment. In these plants, where chemicals are toxic, explosive, or
corrosive,asoundmethodologyisneeded.Thisarticlepresentssuchamethodology.

Wheredowestart?
Once it is clear that there is a need to decommission the plant, the first stage is estimation of costs. Be aware that many of the
garden variety of consultants, contractors and others are very familiar with erection and commissioning costs, but may not be
completely at ease with estimating decommissioning costs. So think about getting some help from people who either specialize in
theseactivities,orhaveacoupleofsuchcompletedjobsundertheirbelt,togetthebestresults.
Secondly, ensure that the people whose assistance is solicited are reliable and trustworthy, as the nature of the initial work is
confidential. You do not want to unnecessarily alarm your regular employees, or suppliers and other stakeholders. You have to of
courseinvolvethesepeople,butatalaterdate.
Thirdly, many times these shutdown/exit costs are needed not only for actually carrying out the work itself, but also to work out
"WhatIf" and similar strategic scenarios. If your global strategy is therefore going to be based on this figure, then you should be

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surethatitisagoodenoughestimateanditiskeptunderwraps.Thiscostwillbeoneofthemajordecisionpointsonwhetherde
commissioningmakessenseornot.Thisfirstcostestimatewillbethelynchpinonwhichthewholecase(maintainingthestatusquo,
orshuttingdowntheplant)willrestandonecannotstresstheimportanceofarrivingatarealisticfigure.
TheProcessRollingupyoursleevesandstartingit
Once it is clear that the plant has to be shut down, one can then start planning the process of doing so. The process of
decommissioningisa3DprocessItinvolvesthethreeDsofDecontamination,DismantlingandDisposal.

Decontamination
Thiscanbedefinedasremovalofcontaminantsfromthesystembywashing,heating,chemicaltreatmentandmechanicalcleaning.
Thetermcontaminantdenotestheundesirablechemicalentitypresentintheassetsusedformanufacture.Theinternalandexternal
surfacesofequipmentareexposedtochemicalsduringservice.Thustheobjectivesofanydecontaminationprocessare
a)Toreduceoccupationalexposure.
b)Tosalvagethefacility,equipmentandmaterialsasfaraspossible.
c)Torestorethesiteforfutureusewhichmaybeanalternateuse(e.g.maybecommercialratherthanindustrial).
Theformsofcontaminantsare
a)Solids:Residues,products
b)Liquids:Residualliquidsinreactors,tanks,heatexchangers,pumps
c)Vapors:Volatilechemicalsinpipes,storagetanks
d)Aerosols:Liquidandsolidparticlessuspendedinair.Thisincludespowdersanddusts.
Decontaminationmethodsusedtocleanupthecontaminantsare
a)Standard:Water,CompressedAir
b)Nonstandard:Steam,Caustic,Detergents,etc
The process of decontamination can take place naturally, if a chemically contaminated surface is exposed in air and allowed to be
washedwithwaterforalongperiodoftime.Theprocesshasnocontrolontimeelementandthedecontaminationresultscannotbe
predictedontimeline.
The second method uses chemical treatment, water treatment, steam treatment and the decontamination results can be predicted
withreasonableaccuracy.
Theprocessflowdiagramforthecompleteprocessisgivenbelowforbetterunderstanding.

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DecontaminateinStages
A structured decontamination process is always carried out in multiple stages. Each stage results in the equipment progressively
nearingthe"clean"status.
Thesestagesare:
a) Primary decontamination: This is the initial cleaning of equipment using chemicals and with water followed by
steam/nitrogen/compressedair.Thelevelofcontaminationismeasured.Ifthecontaminationlevelishigh,thenextactivitydoesnot
takeplaceunlessacceptabledecontaminationcriterionisachieved.
b)Dismantling:Theequipmentisdismantledtocheckthepresenceofcontaminant.Thestageisalsoutilizedtocarryoutinspection
andtestingofequipmenttoascertaintheutilityofequipmentforfutureuse
c)Secondarydecontamination:Thedismantledpartsoftheequipmentarecleanedwithchemicals,water,steamand/orcompressed
air.Thelevelofcontaminantismeasuredatthisstage.Ifthelevelofcontaminantishigh,theprocessisrepeatedagainandagain,
tillacceptabledecontaminationcriterionisachieved.
d) Disposal of equipment: The equipment is declared fit for disposal. It can be sold off or put to use for other purpose (say
transportedtoanotherlocationtosetupthesameplantagain).
e) Disposal of waste: The process of decontamination generates liquid and solid waste. This is to be disposed off in a systematic
manner. The liquid effluents go to the effluent treatment plant and the solid waste is sent for incineration or any other approved
disposalmethod.

Dismantling
The process of dismantling starts with selection of a proper contractor (who has experience in dismantling plants in stages) for the
facility and infrastructure. The contractor should have requisite number of staff & supervisors to check the quality of work. Many
times,thedismantlingworkwouldbeneedtobedoneinstages,asafterthefirststageofdismantling,theequipmentmayneedto
begivenforsecondarydecontamination.Afterthisisover,itmaybedismantledfurtherintoitscomponentparts.
Thecontractorshouldhavesufficientengineeringexpertisetocarryoutsurveys,makeasbuiltdrawings,trackthedismantledparts
andcarryoutassociatedjobs,sothatnothinggetslostormisplaced,especiallyifthesameplantistobeassembledagainatanother
location.
The dismantled equipment has to be secured with special protective packing e.g. a reactor with stirrer can be transported provided
thestirrerislocked.Aseparatepackingarrangementisneededfordifferenttypesofequipment.

Disposal
Thedisposalprocessmayconsistofeithercompletedisposalofthedismantledplant,orcompleteshiftingofthedismantledplantto
another location, or a partial disposal of old equipment (the rest can be salvaged for use in the new plant being assembled at the
secondlocation).Sothereareseveralvariationspossibleinthebreakupofequipmentthatistobedisposedoffoutrightversusthe
equipmentthatistobereused.
Disposal of effluent and waste should be carried out only after ensuring that a valid consent from the environmental authorities is
availableandthecharacteristicsofeffluentandwastearewellwithinthenormsspecifiedintheconsentorder.

RiskAssessment
The processes involved in decontamination, dismantling and disposal are not routine processes and considerable deviations take
place in carrying out the last batches in equipment and the cleaning operations that follow. A thorough risk assessment study is
needed for each of the procedures. It is recommended that such exercise be planned well in advance to mitigate the effects of the
activitiesonsafetyofpeopleandenvironment.
In case this is not done properly, some unfortunate incidents may occur, for which normally company managements are held liable
forprosecution,bytheauthorities.

Internalsupportfromvariousdepartments
Thedecommissioningprojectshouldinvolvemembersfromotherdepartmentstoo,whoseexpertisewouldbenecessaryincarrying
out the project. These are people from Finance & Accounting, Taxation, Purchasing, IT and HR who would be helping the core team
fromProduction/PlantOperations,Engineering/Maintenance&Safety/Environmentalservices,tocompletetheproject.Involvingthe
corporateauditteamisalsorecommendedsincealotofassetdisposal,assetmodifications,scrapsalesandsoonareinvolved.The
site administration team is also important since these people will be getting the necessary permissions from regulatory authorities,
taxauthoritiesandlocalcommunitieswhomaybeadverselyaffectedbytheshifting.

Conclusion
Ascanbeseenfromabove,thedecommissioningprocessforamanufacturingplantorasiteiscomplexinnatureitisnotasimple
"demolish and exit" job. Hence, a structured approach is essential for success. However, each decommissioning may have certain
unique features that require special procedures to be developed. It is a good idea to get help from experts (who have plant
decommissioningexpertise)wherevernecessary.Theprojectcanbeascomplex(orevenmoreso),ascomparedtosettingupanew
plantorfacility.

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