Marine Facility Design and Its Impact on Project Cost in Refinery Projects: A Case Study Of Nghi Son Refinery and the Petrochemical Complex Project

Most construction projects begin with recognition of a need for a new facility. Long before designers start preparing drawings and certainly well before field construction can commence, considerable thought must go into broad-scale planning. Elements of this phase include conceptual analyses, technical and economic feasibility studies, and environmental impact report.

For example, location is fundamental to planning for a new industrial plant. Where the plant can be located to provide desirable, nearby employment for an adequate supply of skilled and productivities workers? What are the present and projected costs and customs associated with the labor force? Depending on the natural of its raw materials input and its products, will the plant have access to the most appropriate and economical forms of transportation, be they air, water, highway, rail or pipeline? Does the local provide access to raw material and to market? Are there adequate sources of energy, including gas, oil, and electricity; and are there convenient communication facilities? What political or institutional factors may ease or impede development and operation of facility? What will be the sociological and economic impact of this plant on the community? What will be environmental impact? What do all these factors taken as a whole, mean for the technical and economic feasibility of the project? Perform the feasibly study to ensure the effectively of the project.

The problem involved in getting a project started probably:

• Design concerned by possibility that owners spend a lot of time and money
• Uncertain as to what the Scope of the project should be
• Worried about how much it is going to cost

Especially, refinery project have a lot of items to study and design including marine facilities, which affect to cost. Le Tu Anh made a research to study how design and selection of an optimal location for marine facility of refinery project affects to project cost.

Conclusions

The Nghi Son refinery and petrochemical complex project has been studied for long time. In this research, the following were proposed:

Firstly, the research was performed and then economic analysis was established. The data was used for analysis based on the Primary design of marine facilities.

Second, the projects begin with recognition of a need for a new facility. Long before designers start preparing drawings and certainly well before field construction can commence, considerable thought must go into broad-scale planning. Elements of this phase include conceptual analyses, technical and economic feasibility studies. All the factors taken as a whole, mean for the technical and economic feasibility of the project. The costs of the marine facilities are estimated. The research shown the optimal design and how impact to the project cost. The owner determines time, money and scope of the items.

Finally, an analysis on the result of the plan showed that the project was well planned, project bring high advantage to owner.

Recommendations for further study

Since the amount of investment for Nghi Son Project has been the biggest in history, here in Vietnam, the financing arrangement for the project is challenging. In order to deal with the complexities of the project in reality, it is recommended that the research conducted in this thesis should be extended to take into consideration the following issue: It is necessary that the Government to grant special incentives and support to improve the viability to enhance Equity IRR of the Project. Based on this concept, the investors would like to propose following incentives and Government supports, most of which have been accepted by the Government. - Initial dredging for product jetty, crude oil jetty (SPM), including harbor (water basin) and channels.

The Dredging volume is big so the Vietnamese contractor cannot be sufficient capacity during a short time. Then Government should give special international contractor who have competence implement the dredging item in the project.

Annual dredging cost of entrance channel will be shared with the Government because the channel is used both Export product jetties of NSP and berth No1 &2 of Local Authority.

Abstract

The refining industry is one of the key industries playing a very important role in the development of the national economy. In addition to ensuring the national energy security, i.e. the supply of strategic energies such as LPG, gasoline, kerosene, jet fuel, diesel, etc, the establishment and development of this industry with the building of refineries will pave the way for the other related industries such as petrochemical industry, basic chemicals production, petroleum products transportation, storage, trading and distribution.

Additionally, the existing of the refineries will definitely bring about positive benefits in the socio-economic fields as well as the national security and defense, making contributions to speeding up the process of industrialization and modernization as proposed by the Government of Vietnam.

Therefore, this thesis deals with how design and selection of a optimal location for marine facility of refinery project to reduce project cost.