Frontier Refining NPRA Daily Production Accounting Cheyenne Wy Refinery

8/11/2019 Frontier Refining NPRA Daily Production Accounting Cheyenne Wy Refinery

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Q&A andTechnology

Forum

Plant Automation & DecisionSupport Session

2008



DAILY PRODUCTION ACCOUNTING ATDAILY PRODUCTION ACCOUNTING ATFRONTIER'S CHEYENNE, WY REFINERY FRONTIER'S CHEYENNE, WY REFINERY

Refinery wide mass balance is anachievable and worthwhile goal.

It is the basis of any loss control initiative.

2008 Q&A andTechnology Forum



DAILY PRODUCTION ACCOUNTING ATDAILY PRODUCTION ACCOUNTING ATFRONTIER'S CHEYENNE, WY REFINERY FRONTIER'S CHEYENNE, WY REFINERY


Cheyenne Refinery embarked in a refinery-wide massbalance initiative in 2003.

The project took approximately a year from the kick-offmeeting to the daily use of the new production accounting

system.

Soteica's S-TMS production accounting system is now usedfor solving the daily mass balance.

Soteica LLC provided S-TMS software and implementedthe production accounting system.



FRONTIER'S CHEYENNE, WYFRONTIER'S CHEYENNE, WY

REFINERY REFINERY

Permitted crude capacity of 52,000 bbl/day.Frontier market’s its refined products primarily inthe eastern slope of the Rocky Mountain region

(eastern Colorado including the Denvermetropolitan area and eastern Wyoming).Our coking unit allows the refinery to process upto 100% heavy crude oil for use as a feedstock.Historically, heavy crude oil has accounted for80% or more of the Cheyenne refinery's crude oilcharge.

Product mix: gasoline (41%), diesel fuel (30%) and asphalt and other refined

petroleum products (29%).Crude oil is purchased from local producers and also imported via the ExpressPipeline from Canada.




Soteica ideas &technology

Since 1985, ProcessEngineering ConsultingCompanyProjects around the worldOffices in Barcelona,Houston, Mexico, BuenosAires and São PauloFull suite of local services:

ImplementationTechnology transfer

Full local supportContinuous improvementprogram

Soteica products:Visual MESA : EnergyManagementS-TMS : Production

AccountingS-SOM : Refinery SchedulingS-OTS : Operator Training




PRODUCTION ACCOUNTING PROJECT ATPRODUCTION ACCOUNTING PROJECT ATFRONTIER'S CHEYENNE, WY REFINERY FRONTIER'S CHEYENNE, WY REFINERY


Key factors for project success:

Support of Frontier’s management team.

Active collaboration of Soteica's and Frontier'sproject managers, both in the implementation stagesand during the operation.





Key factors (cont.):Mass balance model with the appropriate level of detailto provide sufficient cross-checking and redundancybetween measurements.

Analysis is done simultaneously of the whole refinery ona tank by tank and unit by unit level of detail instead ofon a product by product basis.

S-TMS is highly integrated with other Frontier systems,thus minimizing the manual data entry efforts and errors.



PRODUCTION ACCOUNTING PROJECTPRODUCTION ACCOUNTING PROJECT

AT FRONTIER'S CHEYENNE, WYAT FRONTIER'S CHEYENNE, WYREFINERY REFINERY


Cheyenne Refinery model includes:Processing units as black boxes.Point of receipt and shipments on site as boundary limits.Tank farm is modeled tank by tank.Other inventories such as the coke pile, sulfur inventory, and

loaded but not shipped railcars.Generation and consumption of fuel gas, fuel oil, natural gas

and the sulphur and hydrogen produced and consumed.

The model is easily maintained and adapted to plantchanges (such as new meters, new tanks) by theFrontier Yield Analyst.





S-TMS production accounting system is highlyintegrated with other Frontier systems:

Retrieves information from the data historian.

Imports information from the truck dock system.Imports information from the weigh scale system.Exports information to the in-house ERP system thatresides in the corporate offices in Denver.





Daily reconciliation

Initially, an external reconciliation engine was used,but it was later upgrade to the S-TMS embeddedreconciliation engine.

This change highly facilitated the model operationand maintenance.

Crude composition is also calculated on a daily basis.





Daily accounting The role of production accounting, assisted by processengineering, is to find sources of error and work in acontinuous improvement mode.

The reporting is the common information platform for therefinery both as a whole as well as on a unit by unit basis.

Production accounting cannot be done “automagically”. Theaccounting and analysis phase is done on a daily basis andwith human intervention.



S-TMS PRODUCTION ACCOUNTING

SYSTEM DESCRIPTION

S-TMS is an application that allows productionaccountants to model inventories and materialmovements typical of the process industry.

S-TMS web client provides screens to show allcaptured data (both manual and from other systems).

S-TMS can import and/or export information to/fromother systems.




S-TMS has an embedded algorithm engine to minimize the massbalance statistical errors.

Two reconciliation methods available:Traditional gross error identification method.

Successive error identification and simultaneous compensation method.If multiple gross errors are present in the data (most frequentcase), the traditional gross error identification method will spreadthe error in a way that makes it very difficult to detect its location.

S-TMS implements a successive error identification andsimultaneous compensation method which allows for a moreprecise gross error location.



SYSTEM DESCRIPTION




SYSTEM DESCRIPTION





S-TMSPRODUCTIONACCOUNTINGSYSTEM



S-TMS PRODUCTION ACCOUNTING SYSTEM

DESCRIPTION

S-TMS Results Analyzer client graphically displays the

model and the reconciliation results.

S-TMS MS-Excel Add-in is used for data export to Excel.

S-TMS Report designer is used for the creation of newreports and modification and customization of existing

reports.




Results analyzer





Excel add-in





Report designer2008 Q&A andTechnology Forum




PRODUCTION ACCOUNTINGPRODUCTION ACCOUNTINGPROJECT PROJECT BENEFITS BENEFITS

Benefits during the model building phase:

The project team gained a detailed knowledge of theplants operations and tank farm movements.

All existing accounting procedures were reviewed andimproved in order to gather the daily informationrequired to perform the mass balance.




REFINERY DAILY PRODUCTIONREFINERY DAILY PRODUCTIONACCOUNTING ACCOUNTING BENEFITS BENEFITS

Daily use benefits:

As a result of doing daily mass balances, S-TMS hashelped Frontier resolve many balancing issues withease that may have been difficult to find without agood gross error analysis tool.




Valve leak:Frontier had a valve that failed on a coker charge tankwhich allowed product to leak to an asphalt tank. Thistank was out of service, therefore, not gauged on a

daily basis.The Result Analyzer helped find the error in anaggressive manner alleviated the possibility of a tankspill and selling out-of-spec product.





Missing/Incorrect Movements:A receipt or shipment will occasionally getoverlooked, such as a missing pipeline shipment, or

a receipt recorded with an incorrect product code.

With the use of the Result Analyzer and the product

balance report, errors such as this are easy toidentify .





Flow meters recalibration:Flow meter inaccuracies are easily identified withproduct balance and unit yield reports. Correctingthese meters improves the mass balance on a

continuous basis.

Typically, yielding will discover a meter discrepancybefore operations notices the error.





Crude composition tracking:The crude composition report has helped Planningwith crude purchases, setting unit charge rates andinventory levels.

Frontier uses their crude tanks as slop tanks and it isimportant to identify the intermediate stock in thesetanks to set charge rates and to carry thoseinventories to the month-end financials.





Reports used by many areas of the refinery:

With the market getting tighter there is a lot of emphasis onhaving an accurate mass balance. There are several reportsthat help Frontier identify areas that need attention.

Process Engineering and Planning works closely withOperations and Yielding to have meters recalibrated, orificeplates checked, and factors verified.

The Refinery Manager closely watches the monthly loss reportand gives direction based on these results.





It is very difficult to put a typical dollar amount on thebenefits, because once the problem is discovered andcorrected, it can produce a positive or negativemonetary impact.

The most important benefit in all cases, is theimproved process knowledge and the certainty that

proper accounting is being performed.





PRODUCTION ACCOUNTING PROJECT CONCLUSIONS

A refinery wide mass balance productionaccounting system is the first step towards a losscontrol initiative.

It provides useful information for the continuousimprovement of the overall measurement systemand generates widely accepted results used by all

refinery area personnel.


Frontier Refining NPRA Daily Production Accounting Cheyenne Wy Refinery

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