The assessment phase quantified the 4 cost drivers against similar size competitors and best-in-class refineries. The 4 key costs include:

 

•Feed gas-  which can be lowered through access to privileged upstream gas and liquids resources

•Capital and operating expenditure on liquefaction facilities –development project optimisation 

•Royalities & Taxes – engagement of host governments and stakeholders

•Shipping cost & Trading margin – Geographical constraints, shipping fleet optimisation,

​

Of these elements, our client has the most control over capital and operational expenditure on liquefaction facilities. The remaining three elements are primarily influenced by plant location and the size of an operator’s LNG portfolio.

 

Attention was focused on the maintenance operational costs of the LNG facilities. With the greatest direct control and opportunity for life-cycle extensions, a highly efficient maintenance strategy showed significant gaps to potential. Additionally, low hanging fruit was identified within the vessel turnaround procedure.

​

A spare parts management workshop was conducted, working with all relevant stakeholders. The workshop identified any obsolete stock that could be sold/removed as well as critical items that were not currently held in stock. Working closely with suppliers, we took the decision to hold critical spares in stock with dedicated replenishment levels, while other parts were held as consignment stock. 

 

By compressing the warehouse into a smaller footprint alongside the introduction of a barcoding system. Spares could be properly maintained, stock levels controlled and much faster to collect. By having much more controlled stock, pre-picked component and tool kits were produced and delivered to the point of use prior to them being needed. This reduced the wastes of transport and waiting by 12% directly to the operations time.   

 

A SMART permit to work system was introduced to eliminate queueing and extensive paperwork, again increasing the time operators and maintenance staff could spend doing added value operations.

​

​