Q1: As Bangchak is scheduled to undergo a Turnaround Maintenance this year, can you impart on us when the TAM will commence and its duration? Under normal circumstances, how often do TAMs occur and for how long?
A: This year, the company plans for the TAM to last from April 30th, 2018 to June 13th, 2018, a total of 45 days. Commonly, TAMs come around after every 2 year interval and will last for 30 to 40 days for each period depending on the amount of work to be completed, examining and maintaining instruments in the production process. The company is looking into possibilities and planning for maintenance measures that will lengthen usage duration, with goals of increasing duration between TAMs to a 3 year interval.
Q2: With this upcoming TAM, which part of the refinery will be improved or upgraded, and what other results can we expect from the TAM in terms of production, stability, flexibility, production capacity, and cost effectiveness?
A: Aside from the inspection and scheduled maintenance to production instrument, the company has replaced instruments in the Vacuum Distillation Unit to increase production capacity. Also, we have given prominence to energy saving by incorporating special paint technology to be applied to the walls of the distillation unit to prevent temperature loss. As well as, installing a system to increase the flexibility of managing the refinery’s electrical system, and erecting auxiliary system for equipment of high importance to lower the risk of having the production process face an unplanned shutdown.
Q3: What contingency does Bangchak have for oil reserves, in order to not affect the company’s sales?
A: The company has made preparations to procure refined product to meet the demands of customers during the TAM by taking initiative to increase reserves in various depots both inside and outside of the refinery with respect to adequacy of receiving and distributing refined product to customers. Also, refined products were procured in preparation from both domestic and international sources to secure supplies of refined products to match customer demands, and to maintain reserve levels required by Thai law.
Q4: When is the next scheduled TAM after 2018?
A: According to plans the company made in regards to the 3E Project (the project aims to increase efficiency, energy, environmental friendliness) will be completed in 2020, and will have the new unit combine force with the present unit, thus the next TAM is planned for 2020 to coincide with the aforementioned combination, as well as for the inspection and maintenance of existing production equipment. Once the 3E Project is completed, the refinery’s crude oil refinery production will increase beyond 130 KBD.
Q5: On the subject of the 3E Project, how far along is the project, and what is the benefit the company can expect from the project, or any other refinery projects that aims to increase efficiency
A: The 3E Project (project aims to foster efficiency, energy, and environmental friendliness) comprises of:
- The 3rd Co-generation Power Plant project which commenced operation in August 2017 using Natural Gas as fuel generates 10.3 MW and 42 tonnes of steam per hour. It reduced production cost of electricity and steam due to increase in productivity, mitigating environmental repercussion with respect to clean fuel source (Natural Gas), and also helps lower the amount of greenhouse gas the company emits.
- The Octane Booster Unit installation utilizes Continuous Catalyst Regeneration (CCR) technology that succeeds the previous unit, improving distillation unit capacity, increasing product yield and lowering energy consumption; increasing yields of the high valued Benzene production, including the extension of TAM intervals for the unit to 3 years. The project will approximately be completed in 2020.
- The Debottlenecking project aims to increase crude oil refining capacity to exceed 130 KBD with efficiency, yielding finished product in tandem with customers’ growing demand for finished product consumption that increased with economic expansion, and business-wise leveraging competitive advantage. The project is estimated to wrap in 2020.
Other than the 3E Project, another project that aims to increase refinery capacity under the name of YES-R, the project aims to increase Yield Optimization, improve energy efficiency and lowering cost, elevate Safety Excellence to its highest possible level, and enhancing reliability to prevent risks from unplanned shutdown. There are also plans to develop Automation and Digitization technology. We estimate that all projects will gradually be completed and ready for application in 2020.