BCECA Industry Day Student Handbook Updated 260218

“Industry Day”
Student Handbook
Table of Contents
ABOUT BCECA 4
PROGRAMME FOR THE DAY 7
PROCESS DESCRIPTION 8
APPENDIX 1: BIDDING - COSTING YOUR PLANT 8
APPENDIX 2: SCHEDULING A LARGE PROJECT 15
APPENDIX 3: P&ID DEVELOPMENT 19
APPENDIX 4: HAZOP – HAZARD AND OPERABILITY STUDY 29
APPENDIX 5: PURCHASING 37
APPENDIX 6: CONSTRUCTION AND COMMISSIONING 43
APPENDIX 7: MEMBER COMPANY INFORMATION 44
British Chemical Engineering Contractors Association www.bceca.org.uk 2

INTRODUCTION
Welcome to the BCECA (British Chemical Engineering Contractors Association) Industry

Day.
The day has been devised by the BCECA Young Engineers Committee to help give
students an idea of what it is like to run a large project and work in the contracting
industry.
The day is in no way graded or assessed either by BCECA or the University. We hope
that you enjoy the day and that the exercises will give you some ideas to help you with
your final year project and also consider applying to the BCECA member companies for
graduate jobs.
The day is run by young engineers from the BCECA companies; feel free to ask
questions about the industry as well as questions specifically about the exercises.
Appendix 1 contains some hints and tips for your design project. They may also be
useful to you during the exercises today.

About BCECA
Industries Served
Oil & Gas Extraction (Onshore & Offshore): Oil Refining: Power Generation: Petrochemical:
Heavy & Fine Chemical: Polymer: Fibre: Pharmaceutical: Pulp & Paper: Coal: Mining &
Metallurgical: Industrial Gases: Water: Environmental Engineering: Food: Fertiliser:
Agrochemical: Biotechnology: Nuclear: Defence.
The UK Engineering Construction Industry
The UK engineering construction industry is large and diversified by

international standards. It employs over 14,000 people on engineering
design and project management alone, not including the much larger
numbers required for site construction and equipment manufacture. At
any time, BCECA members are responsible for projects with a total
value of over US$25 billion and achieve over US$6 billion of new
business for the UK each year.
Apart from their resources in the UK, all BCECA member companies
operate internationally and have affiliated companies in many parts of
the world. Statistics collected over the last 40 years have shown that,
in every year, between 30% and 70% of the value of new contracts
obtained by the UK companies has been for projects to be built
outside the UK. As a result, member companies have unrivalled
international experience.
Services Provided by Industry

Members undertake any or all of the wide range of activities needed for the successful
realisation of process plant projects, i.e. consultancy, (seeking project financing) feasibility
studies, basic designs and detailed engineering, procurement, construction, project
management, planning and cost control, commissioning, maintenance and training.
We can illustrate the six phases of a typical major process plant project and how the total
costs were allocated on one such project. Although the procurement of equipment and
materials and the construction phase account for the dominant costs, work performed
earlier, particularly in the feasibility and basic engineering phases, has a major impact on
the overall cost.
total
project
cost
allocation

While their core business is in the design project
management and construction of process and utility
plants, members are also using their project
management, engineering and construction expertise
on infrastructure and transportation projects, R&D
facilities, other manufacturing facilities and defence
projects.
Forms of Contract
Members regularly work to many forms of contract (ranging from build
own operate (BOO), lump sum turnkey, lump sum FOB, fixed fee to
wholly reimbursable) depending on the nature of the project.
Some major clients recognise the cost, schedule and quality benefits of
alliance and partnering agreements of various kinds and members
have substantial experience of these longer term
arrangements/incentives. These partnering agreements frequently
include manufacturers and small and medium-size enterprises (SMEs)
to work as part of the whole supply chain management of the project.
Technology
All members participate actively in the development of the process

technology used by the industries they serve. There are many
examples where they are acknowledged world leaders in their field.
However, they are also very experienced at taking a client's or third
party process technology and translating it into a successful industrial
operation.
Members are at the forefront of the development of CAD and
cooperate with clients and suppliers in the use of electronic data
interchange in the process industries.
Unparalleled experience of design and construction problems in the
hostile conditions of the North Sea has led to many engineering and
construction innovations. Offshore module design has assisted the
development of the pre-assembled unit concept in onshore process plant construction. This
permits more of the construction phase to be carried out in the controlled conditions of a
manufacturing plant or fabrication yard, thereby reducing the amount of work and the labour
force required on site.
Health, Safety and the Environment

Members pay great attention to the health and safety of their own people and their sub-
contractors, particularly during the design and on construction sites. They have received
many national and international awards for their safety records. They also have extensive
experience in undertaking risk assessments of all kinds for clients. They are able to ensure
that the best practices are followed in plant design and can assist clients to obtain the
operating permits or licenses that may be required by local and national laws.
Similarly, members are assisting clients to deal with environmental problems and the
growing amount of related legislation. They can undertake environmental impact
assessments for new projects and audits of existing operations. They are developing more
environmentally friendly processes, helping to reduce the pollution caused by operating
plants and assisting clients with the licensing procedures of regulatory bodies.

Project Finance
Many buyers require project finance to supplement their own funds and BCECA members
have many years of successful experience in arranging such facilities using not only their
own skills but taking advantage of their ready access to the London financial markets. This
experience extends to the utilisation of funds from other countries and the international aid
agencies when these may be advantageous and available to a client.
Careers
The contracting industry provides careers for people starting as modern apprentices or, at
graduate level, progressing through technical, procurement and financial activities to
achieve chartered membership of a relevant professional institution.
Site construction and commissioning experience enables further career expansion into
corporate management or project and construction management. International travel is
involved in many positions as up to seventy percent of projects are constructed at overseas
sites. There are also visits and assignments to overseas subcontractors' design offices and
vendors' manufacturing facilities.
Members have international offices and this offers a wide range of opportunities for staff to
pursue.
Throughout the structure of the companies, positions become available for hiring staff at all
levels.

Programme for the day
09:00 BCECA Presentation & Introduction to Project Work Process

09:30 Exercise 1: Bidding
10:00 Exercise 2: Scheduling
11.00 Exercise 3: P&ID Development
12:00 Lunch
13:00 Exercise 4: HAZOP
14:00 Exercise 5: Purchasing
15:00 Exercise 6: Construction & Commissioning
16:00 15 minute wrap Up Session
The Exercises
The exercises will be completed in groups. Make sure you read the instructions to the
exercise carefully and ask questions if you are unsure. Each exercise is preceded by a
presentation. There will be information in these presentations that may help you complete
the exercise. Be prepared to give feedback to the other groups and discuss the exercise
problems and solutions.
The Aim
The day is structured such that for each task there are points. The aim is to be the group
who earns the most points by the end of the day.
The day is not written to cover detailed chemical engineering design, but to give you ideas
about what affects process design and project management. Much of what is covered will be
useful to you when you are completing your final year design project
Warning:
Some exercises require calculation. The numbers, both process and cost related are not
accurate for company confidentiality reasons. Don’t use these numbers as any sort of
reference guide in your design project, refer to publish texts.
Feedback
The BCECA Industry Day changes depending on the feedback we get, if you believe there
are bits to be improved then please tell us!

Appendix 1: Costing your plant
Working out the cost of a plant is difficult. It takes experience to be able to accurately cost a
facility. Generally, the cost of a plant over its lifetime is split into multiple sections:
Capital Cost:
Equipment cost
Construction
Commissioning
Engineering
Overheads:
Purchasing
Legal
Business support
Travel expenses
Operating Cost:
Raw material costs
Maintenance
Staff salaries
Transportation of products/ feedstocks
Compliance with regulations
Technical support
These lists are not exhaustive, but should provide you with a starting point for
thinking about your plant economics.
Process Description
The exercises for the day revolve around a simple oil, gas and water separation on an
offshore oil installation.
Please refer to Figure for the Process PFD.
Process Description
 A mixture of oil, gas and water is driven by the high pressure (~150barg) from the
well into a three phase separator V-101.
o The pressure should be reduced before entering V-101 for safety reasons.

 Water is separated from the bottom of V-101 and taken to water processing for
injection back into the well and use in coolers.
o The water level in V-101 is also maintained to facilitate oil/water separation.
 Gas section
o Gas leaves the top of V-101 and is cooled in gas cooler E-101 to knock
condensates out of the gas stream.
o The condensates and gas are separated in vertical separator V-102, with gas
being sent to compressor K-101, and condensates to a downstream unit.
o Gas compressor K-101 increases the pressure of the gas stream, delivering
product gas to onshore gas processing at product specs.
 Oil Section
o Oil passes from the bottom of V-101, where the pressure is increased by
pump P-101.
o P-101 pumps the oil through Cooler E-102, where it is cooled to product
spec.
o The oil is then delivered to onshore processing at product specs.

3 phase separator Gas Cooler 2 phase separator Com pressor Motor Com pressor
V-101 E-101 V-102 M-101 K-101
Gas to Product
Cooling Water
Supply
M
M-101 K-101
V-102
E-101
LP Steam
From Oil Well
Cooling Water
Return
To Further
V-101 Processing
E-103
Cooling Water
Supply LP Condensate
Oil to Product
FV-101
E-102
P-101
Cooling Water
Return
To Water
Processing
Pum p Oil Cooler Condensate heater

P-101 E-102 E-103
Figure 1 – Oil/ Gas/ Water Separation Process PFD

Exercise 1: Project Bidding Instructions
You are to take part in closed bid to win a small project; you are tasked with calculating an
estimate for the cost and then bidding for the project with this estimate.
Each group is to submit a closed bid for the project to the facilitator.
You must submit the bid before the close time that the facilitator stipulates.
Fill in the bidding sheet attached at the end of this exercise and hand it to one of the
facilitator to collect.
Note: you are bidding for a project based on the calculated cost to the client, part of which is
the profit that you intend to make. A lower profit margin may increase the likelihood of the
client choosing your group, but you will make less money!
Estimating
You are required to calculate the total project cost utilising the following information which
has been simplified for this exercise and should not be used for actual estimating purposes.
I) Total major equipment cost:

1. Compressor (K101) Capital Cost
This can be calculated by the motor size required


 The gas flow rate for this project is 1000 kg/h at a density of 1.225 kg/m3
 Gas is compressed from 15barg to around 60barg
 1 hp = 745 Watts
2. A rough estimate for Phase Separator Vessels Capital Cost is:

 Vessel
3 phase separator (V-101) 2 phase separator (V-102)

D (m) 6.5 3.6
T/T (m) 10 6.5
DP (bara) 16 16
Your company has recently purchased a two phase separator for the same process with a
marginally higher flow rate. This was within the last six months and cost £130,000. You can
choose which estimate to use for your new two phase separator.
3. Total Major Equipment Costs:

 Costs for the compressor and column above.
 Remaining other major equipment costs £86,000.
Note: Example of other major equipment being the heat exchangers.
II) Ancillary Costs
Pipework & Valves, Instruments, Electrical, Civil and Construction costs associated
with the major equipment. (Ancillary Cost)
 Pipework & Valves cost can be estimated as 8% of the Total Major Equipment
Cost.
 Instruments cost can be estimated as 19% of the Total Major Equipment Cost.
 Electrical equipment cost can be estimated as 17% of the Total Major Equipment
Cost.
 Civil Engineering work can be estimated as 25% of the Total Major Equipment
Cost.
 This is an existing brownfield site and as such construction costs are expected to be
more onerous than for a new facility. It is expected that they can be estimated to
be approximately equivalent to 75% of Total Major Equipment Costs.
III) Man Hour Cost

 Similar work has been completed by your company before and it is expected that you
will need 1500 hours to complete this plant.
 A normal working week is 37.5 hours.
 The project is 8 weeks long.
 A principal engineer or subject matter expert is required to run this project for the full
duration.
 Another principal or senior engineer is required for the full project duration.
 3 other engineers are required full time for this project. They can be any grade.
Grade Hourly Rate (£)

Subject matter Expert 90
Principal 80
Senior 70
Process 60
Graduate 50
Other costs associated with Project Management, Engineering Management,

Document Controls, Project Planning and other disciplines have been discounted for
this exercise.
IV) Overhead Cost

 The total overhead rate can be estimated as 5% of the total man hour cost.
V) Total minimum project cost

 This is the sum of all the above calculated costs
VI) Profit
 A nominal profit margin must be within 0-50% for this project. It is at discretion of
each team to decide on the margin, but think about the reasons for choosing this
profit margin.

Note: The profit is calculated as a percentage of the total minimum project cost. The
bidding price is the sum of the profit and the total minimum cost.

Bidding Cost Submission Sheet
I) Total Major Equipment Cost £

II) Ancillary Cost £
III) Total Man Hour Cost £
IV) Overheads £
V) Total Minimum Project Cost £
VI) Profit Margin £
Bidding Price £

Appendix 2: Scheduling a large project
Scheduling any task requires understanding of resources, both human and materials. It
allows us to measure our progress against our targets and gives us something to aim for.
The schedule is often a contract document and there maybe penalties and bonus’s
associated with how the project performs against the schedule.
The schedule may have to “mesh” with the clients own schedule for a shutdown so that
electrical, process and other tie-ins can be done.
Many things influence the schedule for example, the customer requirements, the project
size, and the project manager.
There are several levels of planning:
Level 1: Proposal: This will probably be the basis of the contract. It shows the major parts of
the project such as preliminary design, construction and commissioning and then any
milestones such as payment dates!
Level 2: Project Plan: More detailed than the last, sub dividing the above events into
smaller chunks
Level 3: Detailed Overall Project Plan: This lists how each discipline affects another; for
example, P&ID’s must be finished before HAZOP can be carried out.
Level 4: Task/Activity Plan: This breaks down the discipline requirements into small tasks.
E.g.:
1. Prepare HAZOP worksheets ready for HAZOP review
2. Carry out HAZOP with required disciplines
3. Issue HAZOP recommendation List
4. Collect HAZOP recommendation replies
5. Issue HAZOP report
When considering the schedule there three parameters to consider:

Number of people, cost, and quality
Reduce the people, and quality goes down, schedule gets longer.
Pay more, generally quality is better, but budget is bad.
May get to a point that it doesn’t matter how many people you get in you are never going to
be able to complete on time. May be limited space for people to work - or other problems.
Scheduling is based on experience. For example, it takes around 8 weeks from order for a
standard control valve to be delivered.
Don’t forget to make allowances for situations you haven’t met before. For example, you
need to transport a distillation column 100 miles from a port through the desert to the
construction site. Does the fact that it’s desert mean that it will take longer? What are the
roads like? Are there any local rules or regulations? Can we get the support of the local law
enforcement? Are there any low bridges! All these kinds of questions need to be thought
about to ensure that the column doesn’t get stuck halfway through its journey and put the
schedule back.

Exercise 2: Project Schedules
In this exercise you are to develop a Gantt chart to detail the schedule for design, purchase,
delivery and installation of the extra piping and additional pressure controls required when
attaching to an existing customer pipeline.
For a project like this the contracting company will complete the engineering, procurement
and construction and then a sub-contractor will complete the installation.
Task A:
1. Develop a Gantt chart
2. Determine the project duration and critical path
3. Determine whether the project can be completed within the time frame
Points to consider:
The table shows the tasks that have to be completed in building the pipeline, their durations
and their precedence’s. The pipeline has to be ready in two years. Develop a Gannt chart
for constructing the pipeline.
Task Duration (months) Immediate predecessors

A 4 -
B 2 -
C 7 -
D 12 A
E 5 A
F 7 A,B
G 6 D,J
H 3 C
I 12 E,F,H
J 7 E,F,H
K 12 C

Task B:
It is discovered that task J will actually take nine months to complete. However, other tasks
can have their durations shortened by employing extra resources. The cost of employing
these extra resources is given in the table below. You may choose to save any number of
months in a task up to the maximum number of months set by the table below.
Find the cheapest way of completing the project in two years.
Task Maximum number of months Additional resource cost of

task can be reduced by reducing task by one
month (£000s)
A 2 30
D 1 10
C 3 30
F 2 20
G 2 40
Hints & thoughts:

Think about the order in which tasks need to be done.

ID Task Duration Task Months
Name Predecessor
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Appendix 3: P&ID Development
These hints and tips are for you to use during the exercises today and may also be useful
during your design project. They are in no particular order or importance.
 Developing the P&ID is when your process really starts to take shape. You should have
decided which process you are going to use to manufacture your product and in doing
so fixed the major pieces of equipment. From this you can draw you basic PFD (process
flow diagram). The PFD shows the bare bones of the process. The PFD will be the basis
of the P&ID, Process and Instrumentation Diagram.
 The symbols used on P&ID’s’ will vary from company to company, however, the most
important thing is to ensure anyone who looks at the drawings can understand what is
going on. For your design project a suggested standard is BS 1646
 Use the KISS principle – Keep It Simple Stupid! Complicated designs are never good
engineering. They require more engineering hours, are harder to build, require more
maintenance and have a higher possibility of going wrong.
 Start by thinking about steady-state operation. Your heat and mass balance will tell
you about the pressures, flows and temperatures you require at different parts of your
process. From these you can spec:
 Major process lines – size, material, pressure and temperature rating
 Manual valves (See section on valves)
 Control valves (See section on valves)
 Emergency shut-off valves (See section on trips and alarms)
 Materials of construction (see section on design temperature and
pressure)
 Control Loops: There can be tendency to over-control a process, so beware. Make sure
when you put a control loop in that it will not “fight” with another loop. That is to say the action of
one loop to open a valve may cause another loop to try a close the valve. Decide what is truly
important to control. Discharge pressure from a pump? Temperature in a reactor?
 Instrumentation: What will the operators on your plant need to see? Do they need to be able
to see a pressure indicator when they are using a valve? If so this should be marked on the
P&ID as a note. E.g. “PI 123 to be visible from valve V 456”.
Do you need data to be relayed back to a control room via DCS (Distributed control system)?
Beware of overloading the operators with too much information, but remember, not enough is
just as dangerous.
When specifying instrumentation you must give a range e.g. 0 – 10 barg for a pressure
indicator. Also the type of instrument you require is very important. An orifice type flowmeter is
probably not a good idea if you have a process which has solids or is prone to blocking.
 Alarms and Trips:
Decide what the danger points are in your process. E.g. Reactor temperature. What could
happen if the reactor temperature gets too high? What do you want an operator to do about it?
Does he have time to do anything about the problem? If it is a runaway reaction then an alarm
is useless as there is no time for action – a trip is needed and an alarm added for information
rather than action. However, if it is a high level alarm on a storage tank there are a few options.
Perhaps he can reduce the rate of production so that tank will not fill before the next shipment
of product. Perhaps he can divert the product to another tank, or perhaps he just shuts the
process down. How much time to you want the operator to have to make a decision? If you
were making 1Mt/D of product into a 24MT tank then perhaps you want to alarm at 20MT so
that he has 4 hours to take action. Ultimately you need a high level trip so that the tank does not
overflow; however, you would want a reaction from the operator to stop that trip from activating.
 Start-up and Shutdown: These are two additional cases to the steady-state case discussed
earlier.
Some start-up & shutdown examples:

o Pressurising a reactor bed on start-up – If you open the normal process
valves too quickly you may fluidise and damage the bed, so you may need to
install small bore bypasses around the large valves to allow pressure to build
slowly on start-up
o Overrides to trips – you may need to override an analyser trip during start-up
when the compositions are not as per steady state.
o Drains – do you need to be able to drain out liquid or product from vessels in
order to complete maintenance?
o Do you need a purge line to be able to purge a vessel during shutdown
 Utilities: Don’t forget things like steam, cooling water and power; you need to know how
much of each you need. Also, are they critical? What would happen if you lost the nitrogen
blanketing to a vessel containing a flammable substance? Would it be wise to have two sources
of supply?
 Safety versus Reliability: This can be a real problem. Often plants are specified with certain
reliability, especially if supplying a product via a pipeline to a customer.
In order to make things safe we add trips, these will stop production if an unsafe condition
occurs. However, trips can malfunction and shutdown the plant when not required – this impacts
the reliability. One way of getting around this is to decide whether a certain trip function would
impacts your reliability if it were to activate spuriously. If so, a 2 out of 3 (2oo3) voting system
can be used, such that three independent transmitters are used to monitor a parameter, if 2 out
of 3 register an unsafe condition then the trip activates, if only one sees an unsafe condition the
trip doesn’t activate.
Look out for common mode failures – if you need two check non-return valves in a line to
reduce a safety relief case, spec them to be different models/manufacturers.
 Design Pressure and Temperature: For each item of equipment you specify you must be
sure that it will be suitable for the maximum temperature and pressure of the system. This will
be the design temperature and pressure. For example the design temperature and pressure for
carbon steel pipe is 19.6 barg at –29°C. Any carbon steel components you specify must be
operating at temperatures above –19° and below pressure of 19.6 barg.
You must make sure that any equipment connected to higher pressure systems via such things
as control valves are protected from the higher pressure should the control valve fail open using
a safety valve.
 Valves: There are many different types of valves and you need to understand how each one
responds when opened to choose the correct one for your process. For example, a valve with
an equal percentage characteristic gives a large percentage of maximum flow for a small
percentage opening. A linear characteristic will give the same percentage flow for percentage
opening. This can be important when you are considering control valve applications. How do

you want the valve to respond? A big change in flow for a small change in opening or vice
versa?
Valves have plugs in them; this is what seals the flow in the pipe. They are not necessarily
made from the same material as the body of the valve. If you have a process which contain
corrosive materials you must specify that certain materials, particularly elastomer which are
used in O-ring seals are not suitable.
 Pressure Drop: All pressure drop costs money, it means that you have to pump or compress
fluid to a higher pressure than required to overcome pressure drop and this costs power. Hints
on keeping pressure drop low:
o Try to minimise the number of bends, t-pieces and other fittings in a line. You
can check the relative pressure drops of fittings using the equivalent length
method found in most text books
o Aim for a pressure drop of around 5psi/1000ft on long runs such as pipelines
o Try to run your process at as low a pressure as you can, this may be hard as
a reaction may require a high pressure to get the required yield. There is
normally a trade-off between power and production. Try to make the
correlation if you can, you may find power is more expensive than the
additional product you will make.

Exercise 3: P&ID Development
You have been given a partially developed P&ID, process description and P&ID
development guidance hints sheet.
The partially developed P&ID should give you a taster of the different engineering aspects
that are involved in the P&ID development: materials selection, line sizing, control
sequencing, emergency shut downs, utility lines... etc. The P&ID should be treated as a
work in progress document and not as a completed P&ID.
As a group review these and continue developing the partially developed P&ID following the
P&ID development guidance hints to help you identify seven missing elements.
Process Description
 A mixture of oil, gas and water is driven by the high pressure (~150barg) into three
phase separator V-101.
o The pressure should be reduced before entering V-101 for safety reasons.
 Water is separated from the bottom of V-101 and taken to water processing for
injection back into the well and use in coolers.
o The water level in V-101 is also maintained to facilitate oil/water separation.
 Gas section
o Gas leaves the top of V-101 and is cooled in gas cooler E-101 to knock
condensates out of the gas stream.
o The condensates and gas are separated in vertical separator V-102, with gas
being sent to compressor K-101, and condensates to a downstream unit.
o Gas compressor K-101 increases the pressure of the gas stream, delivering
product gas to onshore gas processing at product specs.
 Oil Section
o Oil passes from the bottom of V-101, where the pressure is increased by
pump P-101.
o P-101 pumps the oil through Cooler E-102, where it is cooled to product
spec.
o The oil is then delivered to onshore processing at product specs.
Vessel Operating Conditions:
Operating Pressure (barg) Operating Temperature (DegC)

Wellhead 150 200
V-101 15 75
V-102 14 30

Other equipment data:
Inlet Pressure Outlet Pressure Inlet Temperature Outlet Temperature
(barg) (barg) (DegC) (DegC)
E-101 15 14 75 30
E-102 30 29 75 60
K-101 14 60 30 130
P-101 15 35 75 75

P&ID development guidance hints
There are 7 factors to consider when designing P&IDs. They fall under the following
categories:
1. Operational issue
2. Materials of construction
3. Safety
4. Control
5. Operability Trip
6. Shutdown Isolation
7. Equipment cost saving
There are missing elements on the partially developed P&ID that are related to each of
these 7 factors. The items may be valves, control loops, trips, alarms etc. Your task is to
identify them and draw them on the P&ID.
1. Operational issue
In order to ensure condensation of impurities in the gas stream, the temperature of the gas
entering V-102 must not exceed 35 deg C. This would affect the quality of the gas product
being sent to customers which could lead to a breach of contract and financial penalties.
What kind of measures and control can you put in place to avoid such a scenario?
If the temperature does exceed 35 deg C, the operator must take immediate action. What
measure can be put in place to ensure a timely response from the operator?
2. Materials of construction
Determine what materials of construction should be used for the pipework between
equipment items missing a pipe spec abbreviation. This should be based on design
temperatures and pressures of equipment and pipe specifications detailed below. Annotate
the P&ID with the abbreviation of the pipe spec that you have chosen on top of each line
missing a pipe spec.
Piping specification data:
Design Pressure (barg) Design Temperature (DegC) Abbreviation

Stainless Steel STD 45 150 SS STD
Stainless Steel 80S 171 250 SS 80S
Carbon Steel STD 13.2 200 CS STD
Carbon Steel 80S 19 200 CS 80S
Vessel design specifications:

Design Pressure (barg) Design Temperature (DegC)
Wellhead 170 225
V-101 45 100
V-102 45 100

Equipment design conditions:
Design pressure Design temperature
(barg) (DegC)
P-101 70 100
K-101 100 200
Cooling Water header 3 100
LP steam header 5 170
3. Safety
The design pressure of V-101 is 45 barg. What safety instrument should be installed on the
three phase separator to protect it if the control valve on the inlet line to V-101 were to fail?
4. Control
The water level in V-101 needs to be kept within a certain range to ensure good separation
of the oil and water. How can this be controlled?
5. Operability trip
If the cooling water supply to E-101 were to fail, then the temperature of the gas stream to
the flash vessel V-102 would increase to the point where it would be too high to condense
impurities. This would prevent proper separation of the gas from condensable impurities,
leading to poor quality gas which could incur a breach of contract and financial penalties.
What emergency safeguard can you put in place to prevent out of spec gas from being sent
to customers?
6. Shutdown Isolation
In the event of a general plant shut down, what failure mode should FV-101 fail in? (fail open
or fail closed?)
Hints: Think about scenarios in which a valve should fail open for safety reasons. For
example, if the supply of a product to a customer is safety critical: nitrogen blanketing of
pyrogenic material to prevent auto ignition, cooling water supply to nuclear power plant
reactor to prevent runaway reaction…
Think about scenarios in which a valve should fail closed for safety reasons. For example,
isolating reagents from one another to prevent uncontrolled reactions. Or isolating a product
stream when the product is out of spec to prevent it from affecting the plant and product
quality further downstream.
7. Equipment cost saving

The liquid outlet of V-102 needs heating from 30 deg C to 50 deg C. Currently it is planned
for this stream to be heated via a shell and tube heat exchanger with a low pressure steam
supply.

You want to reduce the number of heat exchangers to be bought for this project. Can you
think of a way to save on equipment capital cost and utility cost? (Identify a heat source on
the P&ID which could be used to heat V-102’s outlet stream)
Deliverable:
1. Marked up P&ID
2. Answers to the above questions

Partially completed P&ID of the Oil, Water, Gas separation system.
(Please note that this is not a fully developed P&ID and doesn’t contain all valves, drains, vents required for operation and maintenance. It is a very basic representation to
give an appreciation of the varied information that is represented on a P&ID.)
Appendix 4: HAZOP – Hazard and Operability Study
There are all sorts of safety issues with in the process industries:
•Slip trips and falls
•Process safety
•Construction safety
•Emergency planning
Poor safety costs lives and money. During the construction of a plant we can be lifting huge
vessels, working at height, working in confined space, these dangers are controlled by
permits to work.
During plant operation we are worried about slips, trips and falls and process safety. HAZOP
covers the process safety and operability by asking “What if?”
The HAZOP is carried out when the P&ID’s are at a fairly advanced stage and the control
strategy is developed. Picking up changes that need to be made at this stage in the design
will save money later on. Changes during construction or commissioning cost more as re-
engineering has to be completed. It’s far easier to rub out a valve on a piece of paper than
remove it once the plant is built.
The HAZOP team is made up of around six people, any more than this and the meeting
gets too crowded, any less than about four people and the technique doesn’t get the
brainstorming element that it requires.
Aside from the chair and scribe, other team members can include engineers of different
disciplines, plant staff, and maintenance staff, anyone who may have a useful input.
To make the HAZOP easier and more systematic the flowsheets are split into nodes.
Nodes can be as big or small as you like, but the smaller they are the simpler they are, but
too many little nodes means that the team may lose interest and you may miss something. A
suggested method is to use a piece of equipment to centre around and then make each
feed and each product line from the equipment a node.
Guidewords are used to add structure. Not all guidewords are applicable to all nodes; they
act as an aide memoir. A sample matrix is at the end of this section.
When you are considering consequences remember to think about reliability and operability,
as well as safety. The HAZOP is not the place to discuss solutions unless they are very
simple. If there is no instant answer to the problem you have raised then minute it as an
action. E.g. “consider how to purge line from reactor to distillation column”. Again, if you are
not sure what a consequence is, then minute it as an action to find out, the HAZOP team
then can decided whether it is an issue or not.
Exercise 4: HAZOP
Hazard Review is an extremely important part of the design process.
As a class you are going to complete a hazard review of a part of the process.
Typically, two key positions are selected – a chairman to lead the HAZOP, and a scribe to
take down all issues noted. It is important that you approach this as if it were a real review.
We have provided you with a P&ID which focuses on the V-101 3 phase separator
node. Remember, each node is considered separately and the other parts of the plant are
in effect forgotten about whilst HAZOPing.
Use the HAZOP matrix below provided to help you brainstorm as a group, and then share
your thoughts with the rest of the class.
Deliverables:
1. Marked up P&ID
2. Completed HAZOP of Node 1
Notes:
 The node in this exercise have been kept small for the sake of simplicity – in a true
HAZOP the entire gas/oil/water separation system may be considered a node for
example.
 Not every node will use every guideword, and many nodes may have the same
guidewords and consequences (for example E-101 and V-102 will have many
overlapping dangers and consequences as they are intimately linked – hence why
they may normally be considered one and the same node).
No Less More As Well As Reverse

Flow No Flow Low Flow High Flow Misdirected Reverse
Flow Flow
Temperature Low Temp High Temp
Pressure Open to Low High Vacuum
atmosphere Pressure Pressure
Level No Level Low Level High Level
Maintenance Inability to Inadequate Additional Improper
Maintain Maintenance effort to Maintenance
Maintain

Here is an example of how to split the PFD of the gas/water/oil separation system into nodes. For this exercise we will concentrate on Node 1.
P&ID to be HAZOPed
Focus on Node 1. This is a partially completed P&ID. There are a lot of safeguards missing. Carry out a HAZOP to identify these and complete the P&ID.
We have provided you with a partially completed HAZOP. Your task is to finish completing it based on the above P&ID.
Partially completed HAZOP
There are sometimes multiple causes for one deviation with multiple consequences however sometimes there is no consequence for a
deviation.
Parameter Deviation Causes Consequences Safeguards Recommendations
Blocked 3
Flow No Flow None
phase inlet
High level alarm on oil side.

High level trip which would
No Flow close additional on/off trip
valve on 3 phase inlet line.
(SD1)
Varying 3 Fit a flow meter and flow

High Flow phase flow from None control valve on 3 phase inlet
oil well. line.
Have a high pressure switch

Increase in level and on V-101 that trips an
High Flow None
pressure inside of V-101 emergency shut down valve on
three phase inlet (SD2)
Reverse
None
Flow
Pressure in V-101 would
drop. Water and oil at
high temperature would
vapourise and carry over
in the vapour outlet. The
Pressure valve downstream heat
Pressure No Pressure on vapour outlet exchanger might
fails open. struggle to cope with the
increased cooling
demand and this could
affect the quality of the
gas being sent to
customers.
Vapour outlet
pressure control
High valve fails
Pressure relief valve.
pressure closed (or a
hand valve is
closed).
V-101 which is full of hot

oil, water and vapour will
System
start cooling down,
unexpectedly
condensing all the
trips and all
Vacuum vapour. As vapour None.
inlets and
condenses, pressure will
outlets fail
drop which could
closed.
potentially cause a
vacuum.

System trip or
general shut
Low down with very Lines could freeze and
Temperature None.
Temperature low ambient potentially crack.
temperatures.
(up to -50 °C)
High
None
Temperature
Interface level sensor in

3 phase inlet water side with high level
Poor overflow of oil over
contains alarm when the interface
weir. Potential for water
Level High Level significantly level gets too close to the
to overflow over weir,
more water than weir height.
contaminating oil outlet.
oil.
3 phase inlet Low level alarm on water side

Low Level valve fails None and ESD valve on low interface
closed level on water outlet.
V-101 has to be put

Routine offline which could
Inability to maintenance to interrupt gas and oil
Maintenance None.
maintain be carried out supply to customers for
on PSV a long period of time in
breach of contract.

V-101 water
Additional outlet blocked
effort to due to build-up
maintain of sand and well
residue.

Appendix 5: Purchasing
Purchasing is one of the most important steps in the procurement cycle of a project. Procurement is
defined as: ‘Activities pertaining to the acquisition of goods or services from an external source.’
This will include a range of activities alongside purchasing.
The task of purchasing is focused on the acquisition of goods and services for projects. Purchasing
often represents a huge portion of the costs for a project and it happens early on in the procurement
cycle. Many different disciplines have a stake in the process for different reasons:
The purchasing procedure can be broken down into 4 key steps:
1. Define
Before inviting suppliers to bid on work, it is very important that what is required is
accurately defined. This will involve a Scope of Supply Document and will include (amongst
other things):
a. Required Delivery/Installation dates.
b. Information on delivery points.
c. Documentation & language requirements.
d. Standards & codes to be met.
e. Operating requirements e.g. performance, testing & warranty.
2. Invite
Invite suppliers to bid on this scope of work.
3. Evaluate and Negotiate
When comparing and evaluating bids it is important to make sure you are comparing like for
like. It is particularly important to make sure the supplier is providing:
a. The right goods / services.
b. Of the right quality.
c. At the right time.
d. In the right place.
e. For the right price.
f. And with the right supporting documentation.
4. Award and Manage
Once the most suitable bid has been selected, a Purchase Order (PO) will be issued, which is
a: ‘Legally binding agreement for the supply of goods or services in return for an agreed
payment.’ As such, the purchasing process is implemented meticulously in order to protect
the company, its stakeholders and suppliers.
Exercise 5: Purchasing
In this exercise students need to decide which compressor they are going to purchase. Students must
first identify a suitable compressor from each vendor’s offerings. Based on the ‘specification’ that the
compressor must:
 Be able to pump at 20m3/min.
 Pump at a pressure of 10 bar.
 Be manufactured, delivered and installed within 6 months to meet the scheduling

requirements.
Further information that will be required throughout the exercises:
 Electricity Cost: £0.1735 per kWh
 Currency Exchange Rate: 0.88 £/Euro and 0.71 £/$
 Number of operational hours per year is 8000.
Question 1:
Fill in the below table with the model numbers from each company that match these requirements.
Follow the calculation steps on the next page to fill in the table. Determine which company offers the
best deal.
Impressa-
Comp-Pros USA Compressors
Compressa
Model
Capital Cost
Installation Costs
Total Installed Cost
Total Installed Cost in £
Power requirement
(shaft power, kW)
Total Operating Costs
(over 10 years)
Total Cost
(Total Installed Cost +
Total Operating Cost)

Question 1 calculation steps:
1. Identify which compressor from each company will be suitable for the given requirements.
2. Note the capital cost for each machine.
3. Calculate installation cost of each machine based on chosen delivery option.
4. Calculate the Total Installed Cost (Capital Cost + Installation Costs) for each machine.
5. If required, apply a currency conversion to obtain the total installed cost in £.
6. Identify power requirement for each machine.
7. Using the power produced figure for each compressor chosen, you can work out the total cost
of electricity required to power each machine. Note that this figure will not need to have a
currency conversion applied as the electricity is sourced from the UK!
8. Add the Total Installed Cost and the Total Operating Cost for each compressor to find the
total cost over 10 years.
Question 2:
Euro collapses in value and now £1 buys €1.50. Which compressor would you now choose?
Question 3:
The project timeline is not as demanding as it once was and the compressor now needs to arrive
within 8 months instead of 6. Which compressor would you now choose?
Question 4:
USA Compressors modifies their product delivery options to include a delivery option within 6
months that costs 35% of the Total Capital Cost. In response, Impressa-Compressa slashes its
installation costs for every delivery option by 50%. Which compressor is best value now?
Question 5:
The cost of electricity on site has been reduced due to wholesale energy prices falling. It’s now only
£0.14 per kWh of electricity. Still assuming a 10 year compressor life, which compressor would be
best now?
Question 6:
What other factors would you consider when purchasing a compressor? What would make you chose
one vendor over another for a similarly priced compressor?

Comp-
Pros Te
chnolog
yLtd P
roduct Spe
cifi
cati
ons -20
15/
16
1
Comp-Pros Technology Limited is a speciality compressor vendor based in the heart of Yorkshire, UK. We 2
pride ourselves on being able to deliver a product suitable for a wide variety of commercial l needs. Our 3
experienced workshop can manufacture, deliver and install any compressor in a market -leading timeframe. 4
5
Model Power FAD Working Pressure Capital Cost 6
ID kW HP m3/min cfm bar g psi g £ 7
Model 90 Performance 90 120.7 16.7 591 8 100 £ 720,000 8
Model 90 Max 90 120.7 15.4 545 9 115 £ 810,000 9
Model 90 Turbo 90 120.7 13.8 488 10.5 135 £ 945,000 10
Model 90 Ultra 90 120.7 12.9 457 11.5 150 £ 1,035,000 11
Model 90 Ultra-II 90 120.7 11.4 403 13.5 180 £ 1,215,000 12
13
Model 110 Performance 110 147.5 20.4 722 8 100 £ 880,000 14
Model 110 Max 110 147.5 18.6 658 9 115 £ 990,000 15
Model 110 Turbo 110 147.5 17.1 605 10.5 135 £ 1,155,000 16
Model 110 Ultra 110 147.5 16.1 570 11.5 150 £ 1,265,000 17
Model 110 Ultra-II 110 147.5 14.2 503 13.5 180 £ 1,485,000 18
19
Model 130 Performance 130 174.3 25 885 8 100 £ 1,040,000 20
Model 130 Max 130 174.3 22.7 803 9 115 £ 1,170,000 21
Model 130 Turbo 130 174.3 20.5 725 10.5 135 £ 1,365,000 22
Model 130 Ultra 130 174.3 19.3 683 11.5 150 £ 1,495,000 23
Model 130 Ultra-II 130 174.3 17.3 612 13.5 180 £ 1,755,000 24
25
Model 150 Performance 150 201.2 28.3 1002 8 100 £ 1,200,000 26
Model 150 Max 150 201.2 25.9 917 9 115 £ 1,350,000 27
Model 150 Turbo 150 201.2 23.6 835 10.5 135 £ 1,575,000 28
Model 150 Ultra 150 201.2 22.7 803 11.5 150 £ 1,725,000 29
Model 150 Ultra-II 150 201.2 20.8 736 13.5 180 £ 2,025,000 30
31
32
Total Installed Cost (including delivery costs) 33
Within 4 months 15% of capital cost 34
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
© Co mp-P ro s Techno lo gy Limited. This do cument is the co pyright o f Co mp-P ro s Techno lo gy Ltd (Co mp-P ro s) and may no t be co pied in who le o r in part witho ut the
written co nsent o f Co mp-P ro s. The info rmatio n co ntained in this do cument is co nfidential and may be used o nly fo r the purpo se fo r which it is supplied by Co mp-P ro s.
This do cument and all co pies must be returned to Co mp-P ro s o n demand.

Impressa-Compressa Ltd Product Specifications - 2015/16
1
Impressa-Compressa is a manufacturer of high quality, efficient compressors from a state-of-the-art facility 2
in Munich, Germany. Our compressors are designed to the highest standards and come with a 10 year 3
guarantee and full warranty. Please do not hesitate to talk to us about your process requirements. 4
5
ID kW HP m3/min cfm bar g psi g € 7
Model 80 A 80 107.3 16.9 598 7 87.5 € 504,000 8
Model 80 B 80 107.3 15.6 552 8 115 € 576,000 9
Model 80 C 80 107.3 14 495 9 135 € 648,000 10
Model 80 X 80 107.3 13.1 464 9.5 150 € 684,000 11
Model 80 Y 80 107.3 11.6 411 10 180 € 720,000 12
13
Model 105 A 105 140.8 20.6 729 7 87.5 € 661,500 14
Model 105 B 105 140.8 18.8 665 8 115 € 756,000 15
Model 105 C 105 140.8 17.3 612 9 135 € 850,500 16
Model 105 X 105 140.8 16.3 577 9.5 150 € 897,750 17
Model 105 Y 105 140.8 14.4 510 10 180 € 945,000 18
19
Model 130 A 130 174.3 25.2 892 7 87.5 € 819,000 20
Model 130 B 130 174.3 22.9 810 8 115 € 936,000 21
Model 130 C 130 174.3 20.7 733 9 135 € 1,053,000 22
Model 130 X 130 174.3 19.5 690 9.5 150 € 1,111,500 23
Model 130 Y 130 174.3 17.5 619 10 180 € 1,170,000 24
25
Model 155 A 155 207.9 28.5 1009 7 87.5 € 976,500 26
Model 155 B 155 207.9 26.1 924 8 115 € 1,116,000 27
Model 155 C 155 207.9 23.8 842 9 135 € 1,255,500 28
Model 155 X 155 207.9 22.9 810 9.5 150 € 1,325,250 29
Model 155 Y 155 207.9 21 743 10 180 € 1,395,000 30
31
32
Within 4 months 20% of installed cost 34
37
38
39
40
41
42
43
44
45
46
47
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50
51
52
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© Impressa-Co mpressa Limited. This do cument is the co pyright o f Impressa-Co mpressa Limited (Impressa-Co mpressa) and may no t be co pied in who le o r in part
witho ut the written co nsent o f Impressa-Co mpressa. The info rmatio n co ntained in this do cument is co nfidential and may be used o nly fo r the purpo se fo r which it is
supplied by Impressa-Co mpressa. This do cument and all co pies must be returned to Impressa-Co mpressa o n demand.

USA Compressors Ltd Product Specifications - 2015/16
1
USA Compressors are the market leading compressor experts in North America. We strive for excellence in 2
our machines and aim to deliver a superior product to our competitors. Customer value is our number one 3
focus - let us show you why we are number 1! 4
5
ID kW HP m3/min cfm bar g psi g $ 7
Model 135 - Type II 100 135 16.8 595 9 112.5 $ 765,000 8
Model 135 - Type II 100 135 15.5 549 10 115 $ 850,000 9
Model 135 - Type X 100 135 13.9 492 11 135 $ 935,000 10
Model 135 - Type RX 100 135 13 460 12 150 $ 1,020,000 11
Model 135 - Type XXX 100 135 11.5 407 13 180 $ 1,105,000 12
13
Model 168 - Type II 125 168 20.5 725 9 112.5 $ 956,250 14
Model 168 - Type II 125 168 18.7 662 10 115 $ 1,062,500 15
Model 168 - Type X 125 168 17.2 609 11 135 $ 1,168,750 16
Model 168 - Type RX 125 168 16.2 573 12 150 $ 1,275,000 17
Model 168 - Type XXX 125 168 14.3 506 13 180 $ 1,381,250 18
19
Model 202 - Type II 150 202 25.1 888 9 112.5 $ 1,147,500 20
Model 202 - Type II 150 202 22.8 807 10 115 $ 1,275,000 21
Model 202 - Type X 150 202 20.6 729 11 135 $ 1,402,500 22
Model 202 - Type RX 150 202 19.4 687 12 150 $ 1,530,000 23
Model 202 - Type XXX 150 202 17.4 616 13 180 $ 1,657,500 24
25
Model 235 - Type II 175 235 28.4 1005 9 112.5 26
Model 235 - Type II 175 235 26 920 10 115 $ 1,487,500 27
Model 235 - Type X 175 235 23.7 839 11 135 $ 1,636,250 28
Model 235 - Type RX 175 235 22.8 807 12 150 $ 1,785,000 29
Model 235 - Type XXX 175 235 20.9 740 13 180 $ 1,933,750 30
31
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© USA Co mpresso rs Ltd. This do cument is the co pyright o f USA Co mpresso rs Limited (USA Co mpresso rs) and may no t be co pied in who le o r in part witho ut the written
co nsent o f USA Co mpresso rs. The info rmatio n co ntained in this do cument is co nfidential and may be used o nly fo r the purpo se fo r which it is supplied by USA
Co mpresso rs. This do cument and all co pies must be returned to USA Co mpresso rs o n demand.

Appendix 6: Construction and Commissioning
This group is responsible for:
•Constructability/layout
•Construction strategy
•Contractor control
•Resources and training
What happens on site and in what order?

Civil construction - Foundations & piling
Services - Water/power/instrument air
Vessels/machines bolted down
Pipework installed & blown out if necessary
Cables installed
Lubricants/catalysts loaded
Control system installed
Alarm and trip settings installed
Before commissioning can start the plant has to be checked line by line to ensure it has
been built as per the design. Other issues also have to be looked at. Do we have the correct
insurance documents in place to start the plant? Are the commissioning and start-up
procedures in place? Are our neighbours aware of what is happening? We may vent more
than normal, will this cause them a problem?

Appendix 7: BCECA Member Company Information

BCECA Industry Day Student Handbook Updated 260218

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“Industry Day”

PROGRAMME FOR THE DAY 7

APPENDIX 1: BIDDING - COSTING YOUR PLANT 8

APPENDIX 2: SCHEDULING A LARGE PROJECT 15

APPENDIX 3: P&ID DEVELOPMENT 19

APPENDIX 4: HAZOP – HAZARD AND OPERABILITY STUDY 29

APPENDIX 6: CONSTRUCTION AND COMMISSIONING 43

APPENDIX 7: MEMBER COMPANY INFORMATION 44

British Chemical Engineering Contractors Association www.bceca.org.uk 2

Welcome to the BCECA (British Chemical Engineering Contractors Association) Industry

British Chemical Engineering Contractors Association www.bceca.org.uk 3

The UK Engineering Construction Industry

The UK engineering construction industry is large and diversified by

Services Provided by Industry

British Chemical Engineering Contractors Association www.bceca.org.uk 4

All members participate actively in the development of the process

Health, Safety and the Environment

British Chemical Engineering Contractors Association www.bceca.org.uk 5

British Chemical Engineering Contractors Association www.bceca.org.uk 6

09:00 BCECA Presentation & Introduction to Project Work Process

British Chemical Engineering Contractors Association www.bceca.org.uk 7

British Chemical Engineering Contractors Association www.bceca.org.uk 8

British Chemical Engineering Contractors Association www.bceca.org.uk 9

Pum p Oil Cooler Condensate heater

Figure 1 – Oil/ Gas/ Water Separation Process PFD

I) Total major equipment cost:

2. A rough estimate for Phase Separator Vessels Capital Cost is:

3 phase separator (V-101) 2 phase separator (V-102)

3. Total Major Equipment Costs:

III) Man Hour Cost

Grade Hourly Rate (£)

Other costs associated with Project Management, Engineering Management,

IV) Overhead Cost

V) Total minimum project cost

British Chemical Engineering Contractors Association www.bceca.org.uk 12

British Chemical Engineering Contractors Association www.bceca.org.uk 13

I) Total Major Equipment Cost £

British Chemical Engineering Contractors Association www.bceca.org.uk 14

When considering the schedule there three parameters to consider:

British Chemical Engineering Contractors Association www.bceca.org.uk 15

Task Duration (months) Immediate predecessors

British Chemical Engineering Contractors Association www.bceca.org.uk 16

Task Maximum number of months Additional resource cost of

Hints & thoughts:

British Chemical Engineering Contractors Association www.bceca.org.uk 17

Some start-up & shutdown examples:

British Chemical Engineering Contractors Association www.bceca.org.uk 20

British Chemical Engineering Contractors Association www.bceca.org.uk 21

Vessel Operating Conditions:

Operating Pressure (barg) Operating Temperature (DegC)

British Chemical Engineering Contractors Association www.bceca.org.uk 22

British Chemical Engineering Contractors Association www.bceca.org.uk 23

Design Pressure (barg) Design Temperature (DegC) Abbreviation

Vessel design specifications:

British Chemical Engineering Contractors Association www.bceca.org.uk 24

7. Equipment cost saving

British Chemical Engineering Contractors Association www.bceca.org.uk 25

British Chemical Engineering Contractors Association www.bceca.org.uk 26

No Less More As Well As Reverse

British Chemical Engineering Contractors Association www.bceca.org.uk 30

Parameter Deviation Causes Consequences Safeguards Recommendations

High level alarm on oil side.

Varying 3 Fit a flow meter and flow

Have a high pressure switch