Dialogue is the Way to Improve Valve Performance
This is the takeaway from an interview of Muktiadi Rahardjo in Valve World,
April 2016. He is presently the valve and sealing specialist at the Shell
Pernis refinery but has previous experience with Aker Kvaerner and Cameron where
he was also focused on valves.
Adi estimates that over two million valves are now in use at Shell refineries
and chemical plants. In his role of overseeing the specifying, testing and
evaluation of valves, he continually asks himself:
·
Why are we doing this?
·
What could we do better?
·
Do we need to challenge or mind-set?
Shell has extensive standards, protocols and procedures but this does not mean
that the valve delivered today is equal to the one that was tested previously.
Adi wants to encourage better communications all along the supply chain.
Leakage is one issue where better communication is needed. The European focus on
mimizing fugitive emissions is not necessarily a focus elsewhere. Adi believes
that communicating the basis of certain specific spindle tolerances, surface
finishes and type of packing is important.
The communication needs extend to materials. Adi points out that there are
applications where PTFE is not the best seal material. Stellite and tungsten
carbide are often seen as interchangeable, but the selection of coating material
can be critical.
McIlvaine is also trying to use dialogue to improve valve performance through
constantly updated decision guides on severe service valves. We have asked
Adi if he has any comments on the three types of molecular sieve switching
valves which we have analyzed.
Severe Service Valve
Technologies and Markets
Severe Service Valve Sales to the Chemical Industry will be just under $4
Billion in 2017
Severe service valves are required for 56 percent of all the valve applications
in the chemical industry. The definition of severe service includes valves
which are subject to abrasion, corrosion, unusual pressures, or must be designed
to meet stringent safety, sanitation, or contamination requirements.
Severe service valves are required for 75 percent of the process applications.
Since the process segment accounts for 63 percent of all the valves sold to the
chemical industry, the process severe service valves account for 42 percent of
all the valves sold to the industry.
Water used for cooling requires virtually no use of severe service valves.
Only 30 percent of the water intake valves are in the severe service category.
About half the wastewater valves are designed for severe service. These
are valves handling the slurry.
In 2017, the sales of severe service valves for processes will be just under $3
billion with the balance of $1 billion in the other three categories.
The percentages are based on revenues rather than amount of flow or the number
of valve units. While severe service valves will account for 56 percent of
the revenue, they will account for less than 30 percent of the flow and 20
percent of the unit sales.
Details on these forecasts are included in N028
Industrial Valves: World Market
Decision Guides on severe service valve options are already available for
coal-fired power, gas turbine combined cycle power plants, nuclear plants and
molecular sieve switching in gas treatment.
For more information contact Bob McIlvaine 847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com.
Flow Control and Treatment Component Solutions provide a $500 billion Market
The market for components used in flow control and treatment will be $395
billion in 2017. However, component
suppliers have the opportunity to increase sales by 20 percent and gross margins
by 40 percent by providing solutions which give the customer the lowest total
cost of ownership (LTCO). This the latest prediction in
N064 Air/Gas/Water/Fluid Treatment and Control: World Market.
Function |
Component Examples |
2017
World Revenues
$ Billions |
Flow Control Liquids |
Pumps, Valves |
160 |
Flow Control Air/Gases |
Compressors, Fans, Dampers |
45 |
Filtration and Separation of
Liquids |
Filters, Centrifuges,
Clarifiers, Cross-flow Membranes |
50 |
Oxidation and Destruction
Treatment for Liquids |
Biological and Chemical
Treatment including
Digesters, Aerators, Treatment
Chemicals, etc. |
60 |
Indoor Air and Stack Gas
Treatment |
Filters, Scrubbers, Catalytic
Reactors, Nozzles |
80 |
Total |
|
395 |
Component sales in 2017 will be just under $400 billion. However, if component
suppliers were to pursue the solutions approach, the potential expands to well
over $500 billion. This is easier said than done. The component supplier needs
to understand the customer needs. In turn, this means understanding the sub
process, the process and the industry.
The Role of Components in
Solutions |
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Industry |
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Process |
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Sub Process |
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Solutions |
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The LTCO Valve
Product
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If the supplier thoroughly understands the customer needs, he can tailor his
product to best fit those needs.
Let’s take an example. A typical valve controlling compressed air is a
commodity product. One application involves pulsing air to clean filter bags.
Pentair has become the world leader in this specialty niche by understanding the
dust collection cleaning process and the variations needed for various different
industries. Pentair supplies not only the valves but the headers and the
controls to optimize the cleaning process.
Many industries need evaporation processes. Mechanical Vapor Recompression
(MVR) is one sub process which minimizes total energy consumption.
Colfax Howden has a number of blowers and fans to offer depending on the
flow and temperature increase needed. However, it has also developed the ExVel® fan
specifically for this unique application. The impellers are suited to abrasive
and corrosive conditions encountered as the steam is recompressed.
W.L. Gore has developed a number of innovative solutions based on process and
industry knowledge. Most power plants have wet flue gas desulfurization
(FGD) systems. There are new rules to reduce mercury. Wet FGD systems will
remove most of this mercury with the right treatment chemicals. The
conventional solution to remove the remainder of the mercury is to use activated
carbon upstream. The problem is that any mercury removed by the carbon
reduces the amount captured in the scrubber. W.L. Gore developed a module
which can be installed after the scrubber and efficiently remove remaining
mercury.
Flowserve is a major supplier of pumps for reverse osmosis (RO) processes.
Desalination of seawater is a big potential market. High energy cost is one of
the major factors reducing the market potential. Flowserve understood that
a solution was energy recovery and acquired a company to provide it.
(Calder DWEER™)
Most flow control and treatment equipment will be purchased in countries with
less application experience than in the past. This means that
international suppliers have a great opportunity to develop and sell solutions
to ensure that the customer selects the lowest total cost of ownership (LTCO).
For more information, click on:
N064 Air/Gas/Water/Fluid Treatment and Control: World Market.
Daily Project Posting in McIlvaine Oil, Gas, Refining Supplier Program
OIL/GAS/SHALE/REFINING
E-Alert
April 2016 – No. 1
This alert is being issued twice per month for suppliers in flow control and
treatment who are coordinating market research with targeted pursuit of the
larger and longer term orders.
PROJECTS
The following projects each will result in millions of dollars of orders for
flow control and treatment products. Each project has been rated. The
opportunity size is rated from 1-10 with 1 being small and 10 being very large.
The timing for flow and treatment orders has been provided by year, e.g. T 16 =
timing of order is 2016.
Minatitlan Refinery $800 Mln ULSD Contract Awarded to Técnicas Reunidas (07,T17)
KBR Wins Multi-phased Contract for Front-end Engineering and Design for
Woodfibre LNG
CNOOC and Shell to Expand Nanhai Petrochemical Complex in China
European Commission Approves Finnish Cash for LNG Terminal (06)
CB&I to Build Oil Storage Tanks in Edmonton (06)
Black & Veatch Win Chinese Shanxi Qixian Liquefied Natural Gas Project (T16)
Expansion of the Alfa Laval Test & Training Centre for LNG and Other Fuels will
Drive Environmental and Energy Solutions
Neste Jacobs to Perform Energy Study of INA's Oil Refinery in Croatia
Saudi Aramco Tenders for $500 Mln Uthmaniyah Gas Treatment Units (06, T17)
Boskalis Awarded Gas Pipeline Contract in Abu Dhabi (T16)
Technip Wins Engineering Services Contract by Total E&P Angola (T17)
PetroVietnam Plans to Build Natural Gas Plant in Vietnam (08, T20)
Meridian Bucking Trend with Proposed North Dakota Refinery
Deep Down Receives Mooring Line System Order from Shell
FEED Contract Signed within Framework of the Heydar Aliyev Refinery
Reconstruction Project
Iraq Signs MOU with Egypt for Oil & Gas Cooperation
South Korea Continues Push to Become Northeast Asian Oil Hub, Despite Delays
Onesubsea Wins Contract for BP's West Nile Delta Fields in Egypt (T16)
These projects are covered in more detail and are integrated in a database which
is part of Oil, Gas, Shale and Refining Markets and Projects. This semi-monthly
report is available as part of this service or as a stand-alone subscription.
The Oil/Gas/Shale/Refining E Alert is issued twice per month to
registered subscribers. It is not to be resent to others. Each subscriber must
be registered. The first subscription is $950/yr. and additional subscribers are
$90/yr. The newsletter is free for those who subscribe to
N049 Oil,
Gas, Shale and Refining Markets and Projects.
There is a 30 percent discount for those building an Opportunity Creation
package with one or more of the market reports and one or more of the E Alerts.
Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a
Weekly Basis
Here are some headlines from the Utility
E-Alert.
UTILITY E-ALERT
#1272 – May 13, 2016
Table of Contents
COAL – US
·
Fuel Tech awarded Air Pollution Control Orders totaling $2.2 Million
COAL – WORLD
·
Ghana to start building China funded $1.5 Billion Coal-fired Power Plant in 2017
·
500 MW Expansion for Ekibastuz-2 Power Station in Ekibastuz, Kazakhstan
·
Orascom proposes Ultrasupercritical Hamarawein Port Power Station in Egypt
·
Shenhua Group completes upgrades to Coal-fired Power Plants in the
Beijing-Tianjin-Hebei Region
·
Indian, Sri Lankan Officials meeting on Sampur Power Project
·
Asian Development Bank providing $900 Million Loan to Pakistan for Coal-fired
Power Plant at Jamshoro
·
Tanzania's U.S. $2 Billion Coal, Iron-Ore Projects to Start Soon
The
41F Utility
E-Alert
is issued weekly and covers the coal-fired projects, regulations and other
information important to the suppliers. It is $950/yr. but is included in the
$3020
42EI Utility
Tracking System
which has data on every plant and project plus networking directories and many
other features.
-------
You can register for our free McIlvaine Newsletters at:
http://www.mcilvainecompany.com/brochures/Free_Newsletter_Registration_Form.htm.
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com