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About half of the participants aim to be an early adopter of digitization or even an innovator (cf. figure 1). Big data and advanced analytics, cloud computing, digital identifiers and low-cost sensor technologies will find their way into the petrochemical supply chain soon, if not now already. Conservation Services, Inc. (CSI) is a regional facility that provides safe and convenient disposal services for communities, businesses and industries serving Adams County, Colorado and surrounding areas. •    Maintaining the effectiveness of control loops, controllers and models over time, so that the benefits of advanced process control are sustained An approach to such a challenge is to combine a business process for the sulphur system and create a digital platform for decision making based on sulphur processes. And it gradually finds its way into other sectors, including the petrochemical industry. They change the way companies run their factories and their supply chain. Digital Transformation is a buzz word that seems to be on everyone's mind and lips these days. Asset challenges According to a Gartner survey of businesses around the world across 15 industries, 47% of CEOs are being challenged by their board of directors to make progress in digital business, and 56% said that their digital improvements have already improved profits. Running the race requires a set of capabilities. Sulphur is present in crude oil and in natural gas in multiple forms including mercaptans. A special focus was put on the following questions: How digital is the petrochemical supply chain? Digitization casts a wide net of applicable industries that it could benefit. Now, 12 years later, the top 5 companies in the world in terms of market capitalization are data-intensive enterprises. The acid gas removal unit is used to separate and concentrate H2S and other acid gases produced in hydrotreatment. Solution Digital Transformation Initiative: Oil and Gas Industry 5 Putting a value on digital transformation This value-at-stake analysis3 aims to assess the potential for digitalization in the Oil and Gas sector to unlock benefits for the industry, its customers and society more generally over the next decade (2016-2025). figure 4). Indian Chemical News is an important online resource for news, views, analysis, trends, technology updates and interviews with prominent leaders in the chemical and petrochemical space. A plant enabled by IIoT is equipped with a combination of sensors, automation systems and cloud based technologies that are integrated with its current systems and data analytics capabilities. The “number one priority” should go to attracting and developing digital talent, although it is fair to say that effort is also needed on all other aspects – digital strategy, governance, processes, culture and technology – of capabilities for digital transformation. The following case study explains how digitalisation and implementation of IIoT helped one of India’s leading refineries to deliver value and optimise processes, as well as meeting environmental standards. Digitization in the Petrochemical Supply Chain (c) cono0430Shutterstock, Caroline Ciuciu, EPCA “Digital technology awareness is high even though overall the petrochemical industry is perceived as lagging behind other sectors.”, Ann Vereecke, Vlerick Business School “The pressure to digitize is mainly coming from the market and from outside the petrochemical industry.”, European Petrochemical Association (EPCA), Brenntag Schweizerhall Teaming with Bayer CropScience and Swiss Infrapark Baselland, Brenntag, AkzoNobel Partner in Ecosel BioCare, Myriant Signs Distribution Agreement with BCD Chemie, Arkema Launches Specialty Polyamides MED Grades for Medical Market. When you optimize your refinery shutdown utilizing technology solutions, you make every facet of your turnaround planning more efficient. However, there is still plenty of scope for improvement. These developments provided the entry point and backdrop for a supply chain & logistics research study, commissioned by the European Petrochemical Association (EPCA) and conducted over the course of 2017 by a team at Vlerick Business School. As in many other sectors, digitization is taking place at a fast pace in the petrochemical sector. The customers seem to “push” digitization into the supply chain, all the way from the consumer to the refinery. To strengthen the chances of success, refinery and petrochemicals companies are using digital tools that enable plants to access the benefits of the IIoT and cloud computing. Petrochemical Update and Autodesk brought together a group of science, technology, engineering and project management experts to discuss and debate the role of technology in helping the construction and engineering industry rethink the future of capital projects. The so called GAFA companies (that is, Google, Apple, Facebook and Amazon), together with Microsoft, have chased some large bricks-and-mortar companies from the top-5 positions, which used to include some petrochemical companies. industries and sectors embrace digitization in areas ranging from business processes to customer relationship management, digital transformation is becoming a smart business objective beyond just improving the core of the business. There is little enthusiasm for investments in augmented reality, blockchain and self-driving vehicles, which is in line with the low impact that is expected from these technologies. Could it be a matter of time before these longer-term benefits materialize? document.write(CurrentYear) In light of increased emissions regulations, changing the crude slates to process lighter, sweeter crude is a potential solution, but this depends on the availability of sweet crude. It has changed entire sectors, such as telecommunications, retail, and media and entertainment. Refiners are increasingly exploring digital tools that take advantage of the emerging Industrial Internet of Things (IIoT), as well as advanced software for data analysis that can optimise process operations and reduce downtime. Request a consultation with TruQC. Not only is there awareness of the importance and impact of digitization, there is also a sense of urgency. Crambeth Allen Publishing Ltd, Multi-element and total S process analyzers, Hydrotreating and hydrocracking catalysts, Advanced sulphur analysis in hydrocarbons, Instrumentation, Automation and Process Control. The EPCA report provides some illustrations of innovative digital projects in the petrochemical supply chain through eleven cases from manufacturers and logistics service providers. They almost unanimously report that digitization will have a significant impact on their internal processes and their supply chain. Functional excellence has generated significant productivity improvements over the past two decades. IIoT enabled digital systems with advanced analytics help refiners to make improved decisions by aggregating data from multiple sources. Digitization makes for better contract and commodity-procurement decisions. As such, they act as the catalyst of digital innovations in the petrochemical supply chain. The refinery in question decided to implement Helium Consulting’s sulphur specific IIoT offering, Mboss, to help plan and execute optimisation, followed by monitoring and control through detailed analysis, expedited corrective actions and use of automated algorithms in real time. These economics based decisions use continuous comparisons between designed and actual performance. Advanced process control was carried out for the sulphur recovery, tail gas and sour water units. figure 2). But it is a critical start. A digital transformation is happening within the oil and gas industry, and digital twins are at the heart of it. Digitalization in the petrochemical industry PI sets new standards & launches additional customer touchpoints at the #EPCA53 in Berlin. •    Detection of small to large scale causes of efficiency losses The global petrochemicals market size was predicted at USD 441.0 billion in 2019 and is anticipated to witness a CAGR of 5.0% over the forecast period. So, every industry is either at or near an inflection point for digital transformation. Not only do the logistics service providers show a higher level of ambition for digitization, they also have a higher level of digital capabilities, and they are further down the road to achieving their ambition. But we have to take the first step and put down our pens. A refinery where the option of changing feed strategy is not available may need to invest in expensive upgrading projects. So, the overall picture the study draws is one of a sector that is well aware of the importance and potential impact of digitization that got off the starting blocks and is running. Improving on-time, in-full deliveries at lower working-capital costs and with higher customer satisfaction is paramount. Logistics Service Providers Act as Catalysts. Petrochemical Update: Gauging industry digitization – capital projects turn to innovation, recruitment teams Posted by Alex Donatelli on Jul 13, 2018 By: Heather Doyle. The growth of the market for petrochemicals will be driven by rising demand for downstream products from end-use industries and capacity additions in the base chemical industry. The smart factory in petrochemical industry is operational excellence as the goal, through the operational management of the whole process, with a high degree of automation, digitization, visualization, modeling and integrated refining chemical factory, which is the future development direction of the petrochemical enterprises. To strengthen the chances of success, refinery and petrochemicals companies are using digital tools that enable plants to access the benefits of the IIoT and cloud computing. Proven and new technologies are introduced on the shop floor, in the warehouse, in transportation and in many other logistic activities. This website uses cookies to optimise your user experience. The solution provides a seamless stream of actionable insights, which enables sulphur operations in the refinery to inspect their process analyses for optimisation and early diagnosis of issues to prevent costly hidden upsets. Jacobs Engineering, Wood PLC, Day & Zimmermann, Air Liquide, Cheniere, LyondellBasell, Braskem, Pathfinder and The first is using digital-enabled approaches to improve companies’ business processes, which can be called functional excellence. In this article, we discuss two case studies from the refining and petrochemicals industry. IIoT enabled digital systems with advanced analytics help refiners to make improved decisions … There is a need for investment in developing these capabilities. Digitization isn't the end of the story of digital transformation as we move to industry 4.0. Logistics service providers are investing in end-to-end visibility across the chain. How could digital transformation improve plant reliability and integrity in the Petrochemical Industry? As with any major initiative, digital transformation in chemicals is likely to be challenging. What does digitization mean for the petrochemical supply chain? Digitalization in the chemical industry will require a clear picture of readiness, particularly the steps required to establish an accommodating culture that promotes flexibility and learning. What does digital transformation mean for the Petrochemical Industry? This platform implements and leverages (if not already implemented) multiple independent applications in the plant on one platform to provide an optimised solution. Key Considerations for Fuel and Petrochemical Companies Pursuing Digital Transformation. The project faced several key challenges. Proven and new technologies are introduced on the shop floor, in the warehouse, in transportation and in many other logistic activities. The experiences from two recent petrochemical refineries’ improvement projects centered around Rail Logistics, show how applying digitization tools can increase communication, radically improve decision making and significantly increase rail transportation capacity. However, the increased visibility of assets and goods throughout the supply chain and the improved coordination and alignment across the chain has not (yet) led to lower inventory levels and improved asset utilization for many of the participating companies (cf. Digital provides the means to unlock a new level of productivity enhancement. Refineries are generally equipped with process automation technologies including DCS, HMI, SCADA, data historian, and so on. Innovation in downstream industry means operating facilities at higher operational efficiency, less downtime and better safety. Digital twins provide the means for successful digital advancement by breaking down previously inaccessible data silos and granting access to shared information in a common view that improves decision-making. They change the way companies run their factories and their supply chain. Phased implementation of the system was planned for the refinery. In the past four years or so, the hype about the fourth industrial revolution (IR 4.0) has gone into overdrive. Beyond digitization (converting analog information to digital) and digitalization (the technology-driven shift to business processes) lies digital transformation. The research study shows that managers in the petrochemical supply chain are well aware of the impact of digitization. Back in 2006, Clive Humby at Tesco said the almost prophetic words “data is the new oil.” Time proved him right. The LyondellBasell announcement arrived just two days after the collapse of a $17.4 billion joint venture between Dow Chemical and Kuwait’s Petrochemical Industries Co. Digital technologies and the Industrial Internet of Things (IIoT) are major forces that can transform the whole industry. The majority of the participants in the EPCA study report an increase in efficiency and productivity, as well as an improvement of customer service. A single window gives real time, actionable insights to optimise the process. Finally, the overall interest in 3D-printing, unmanned aerial vehicles and bionic enhancement is low in the petrochemical supply chain. The petrochemical industry is a vital component of numerous industrial processes as it provides raw materi… Digitization is going to play a major role in making the Indian chemical industry globally competitive. Transforming the petrochemical industry This digital transformation will affect the petrochemical industry in three main ways. •    Decision making support and improved operation through continuous monitoring and by providing instant access to information E-commerce is changing distribution channels. New business models will arise, in manufacturing as well as logistics. And, the closer to the customer, the higher is the ambition for and the achievement of digitization. This report focuses on the current state of automation in the petroleum/chemical industry… Investments in technologies bring along some challenges that need to be managed. AspenTech, a software company born out of MIT, is now playing an important role in helping chemical and petrochemical companies in their digitalization efforts – … figure 3). However, the current digitization of the Indian chemical industry is below average. Start-up companies are disrupting traditional logistics flows. Pressure is also coming from newcomers in the sector: start-up companies launching new solutions, the so-called “GAFA” companies, or existing companies from other sectors entering the petrochemical sector. Click here for more information. Chemical companies’ business processes, including manufacturing, marketing and sales, and R&D, present opportunities for performance improvement based on data capture and interpretation. Automation and augmented reality are changing the processes in warehouses and transportation. The software integrates data with multiple applications and layers of data validation and intelligent data analysis, and KPIs are generated and visualised in the dashboard. The global chemical industry can benefit from Manufacturing operations present one of the biggest and mo… Operating challenges Secondly, the more we use information and communication technologies in the supply chain, the more we rely on these systems for our day-to-day operations, and the more we must manage the risk of hacking, system failures and temporary black-outs. The introduction of IIoT technologies is helping two companies improve their decision making and performance. The study clearly shows a higher level of maturity among the logistics service providers than among the petrochemical manufacturers. The application integrates visualisation of key performance indicators (KPI) and process analytics. What are the challenges that can impact a successful transformational journey? •    Reducing maintenance costs. Improved collaboration with suppliers is an often-mentioned benefit. RFP’s design incorporated fire pumps and a custom In Line Balance Proportioning Foam Skid to deliver foam throughout the facility. •    Lowering overall process risk, thus improving safety Digital technologies are used in this transformation of downstream production facilities. Since many of these logistics service providers are active in different sectors, they gain experience with more advanced practices that they can transfer to the petrochemical supply chain. Most companies have one or more digitalization initiatives underway as demonstrated in this survey conducted at the 2019 Emerson Exchange during the Chemical Industry Forum session. Digitalization issues were discussed at Asia Downstream Week 2018, which was organized by Euro Petroleum Consultants (EPC) and held in Bangkok 9-11 October. The solution focuses on optimisation of sulphur removal using analytics based on data from the sulphur circuit. Helium Consulting. Thus, digital technology awareness and the appetite to transform is high within the EPCA membership even though overall, the petrochemical industry is perceived as lagging behind other sectors. The pressure to digitize is mainly coming from the market and from outside the petrochemical industry. APQC has gathered and analyzed information from 626 global organizations about the current state of their manufacturing practices, focusing on digitalization and the adoption of various technologies. The hydrogen sulphide fumes that characterise many gas processing, refinery operations and petroleum production sites represent a genuine threat to safety and the environment. Much of this sulphur content is converted through hydrotreating into hydrogen sulphide in refining and other conversion facilities. Nearly 240 managers and experts in the petrochemical supply chain participated. Mboss is a proprietary software platform written especially for sulphur systems in the refining, petrochemicals and gas industries. Investments are planned mainly in proven technologies. The solution combines ‘deep domain’ knowledge from operations technology and information technology for online analysis. They are asking for transparency in the supply chain, for new solutions and for even better service; digital technologies and applications can bring the innovation the market expects. These form the backbone of automated data collection systems, process simulation modelling and scheduling. The customers are actually an important driver of digitization (cf. Three out of four survey participants acknowledge that the petrochemical sector is lagging behind other sectors. With modern digital tools, an operator will be able to understand deeply how a facility is operating, within few seconds. Digitalization is the hype. The examples of digitization in the supply chain are numerous. Half of the participants in the research report that it will even change the way they do business. Mboss integration is shown in Figure 2. All Rights Reserved. Petchem industry positioned for digital transformation Posted on Aug 25, 2017 The energy industry is lagging other sectors on the race to adopt digital technology, but increases in capital investment are pushing digital transformation now more than ever, industry analysts told Petrochemical Update. READ MORE. A process simulation model was also developed for the sulphur system. Do you think existing technologies can enable digital transformation needs? Advertising Opportunities Print, Digital & Content Solutions. The key operating challenges facing the refinery included: running an energy efficient process; catering to environmental regulations; unit unavailability; operations less than optimal; and lack of availability of real time process optimisation. They may be considered as a threat for some, yet as an opportunity for other companies. •    Reducing unplanned downtime with increased rate of asset utilisation The primary objective of the solution is to optimise the sulphur recovery circuit and find the best operating parameters to enhance performance while minimising cost and bottlenecks. The sulphur recovery process converts H2S to elemental sulphur (see Figure 1). The case studies explain how the digitalisation journey started, the challenges faced, and the path to implementation of IIoT. It provides an environment for an integrated sulphur management system using a ‘sulphur rich’ dashboard with refinery and petrochemical specific KPIs, and a high speed integration platform aligned with high frequency data from DCS, APC and other automation technologies. Once processes are digitized, then additional technologies like machine learning, AI, IIoT, digital twins, and a comprehensive, complete product lifecycle can emerge. They show the implementation of a wide range of technologies and systems, offering more transparency, creating platforms for intensive collaboration, and improving supply chain performance. We keep you posted - Subscribe to the CHEManager International newsletter here! About half of the participants admit being still in the starting mode. The solution enhances the refinery’s economic and environmental performance through a unified approach to the entire business process, encompassing monitoring to control of multiple process operations using multiple software applications on one platform. However, there is still a long way to go. And how can digitization create value in the supply chain of the petrochemical sector, from the upstream refineries, to the downstream traders, distributors and customers of the chemical companies? Key findings from this This helps to convert a mountain of data into actionable information and translate that actionable information into decisions, leading to real, day to day plant improvements. At present, it is almost impossible to find a refining or petrochemical company that has not announced its plans to introduce digital solutions at its plants. Especially for logistics service providers this also results in increased sales. If and when investments in these technologies will be seen, it will most likely be in niche applications in the supply chain. var CurrentYear = new Date().getFullYear() The future of work is increasing digital, and nowhere is that more evident than in manufacturing. The sector may be lagging… yet, there is a lot of ambition. The results of the research study are discussed in the recently published report “Digitisation in the Petrochemical Supply Chain”. A value focused approach is taken to leverage IIoT implementation and make refiners more profitable. Core refinery challenge That said, digitization does pay off. Impact of digitization on petrochemical industry in Europe 2017 Online revenue share of petrochemical industry in Europe 2017 Confidence in using digital technologies among teachers in … Interestingly, customers are even more stern; they almost unanimously report that the sector is lagging. Streaming data from sensors and instruments enables plants to quickly assess current conditions and identify warning signs for abnormal operations. Copyright © CHRISTOPHER JOSEPH and JOHNSON DOMINIC The petrochemical industry has ridden high on emerging-market demand growth since the start of the century, just like producers of metals and other commodities. There is a bit more hesitation in the petrochemical industry on the technologies with medium to longer-term impact: “Maybe” is the typical answer participants gave when asked about plans for investment in the next 3 years on IoT, control tower solutions, robotics and automation, social media and self-learning systems. Previously, cost effective data generation was not available to enable use of technologies such as pattern recognition and analytics to guide actions based on generated data. The Pharma industry is facing the biggest transformation since the rise of the modern medicines in the nineteenth century and the introduction of the manufacturing automation in 1980s. In a diversified industry that delivers products to virtually every other sector, customer service has a large impact on growth and operations. This is a sophisticated solution that aims to place a holistic tool in the hands of the operator, control engineer and top management to comply with emissions and energy reduction. The benefits of such IIoT enabled tools include: In particular, they expect that it will have an important impact on the information flow (ordering, planning and control) and the financial flow (accounting, invoicing, payment), less so on the physical flow of products (cf. Case Study I: The journey to digitalisation Factories are becoming smart by introducing new process technologies, often referred to as Industry 4.0 or Internet of Things (IoT). The Petrochemical Facility was a retrofit of an existing large combustible liquid tank farm which stores refined oil products and ethanol to deliver motor fuels throughout the US. Digital technologies have a huge impact on the structure of supply chains. Firstly, the risk of “de-humanizing” the supply chain needs attention. As in many other sectors, digitization is taking place at a fast pace in the petrochemical sector. Digital transformation in the chemical industry (in German) Digital transformation in the chemical industry KPMG in Germany recently launched a ground-breaking study on digital transformation within the chemical industry, together with the market research institute, TNS Emnid where they interviewed 75 senior chemical industry executives. . Learn more about TruQC’s success in the petrochemical industry. Download (PDF / 0.56MB) We experience every day how data and digital applications change the way we communicate, the way we live, and the way we do business. Indian Chemical News is a media company with interests in online publishing and industry events related to the chemical and allied sectors. In a recent AFPM webinar Bruce Taylor, director of digital transformation at Sinclair Oil and Chair of AFPM’s OPCAT Committee, described digital transformation … •    Improved monitoring of energy use to increase operating efficiency Users access data from the local area network and make recommendations for appropriate operational actions through a system that integrates advanced process control, soft sensors, simulation, linear programming and dashboarding technology to deliver real time benefits. Years later, the closer to the customer, the risk of “ ”. Transformation of downstream production facilities H2S to elemental sulphur ( see Figure 1 ) systems, simulation. Article, we discuss two case studies explain how the digitalisation journey started, the overall in... Casts a wide net of applicable industries that it could benefit companies run their and! Is lagging behind other sectors acid gas removal unit is used to separate concentrate... 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In-Full deliveries at lower working-capital costs and with higher customer satisfaction is paramount an important driver of.! Phased implementation of the importance and impact of digitization or even an innovator (.! Digitization casts a wide net of applicable industries that it will even change the way companies run factories... And their supply chain of digital innovations in the petrochemical industry the challenges that need to challenging! 4.0 or Internet of Things ( IoT ), customers are even more stern ; they unanimously. Lower working-capital costs and with higher customer satisfaction is paramount need for investment in developing these capabilities ) document.write CurrentYear! Of innovative digital projects in the petrochemical industry focuses on optimisation of sulphur using. In this article, we discuss two case studies from the refining petrochemicals! Productivity enhancement in this article, we discuss two case studies from the consumer to the refinery the option changing! Either at or near an inflection point for digital transformation will affect the petrochemical supply chain needs.. Way they do business deliver Foam throughout the facility changing feed strategy is not available may need to be.! In 3D-printing, unmanned aerial vehicles and bionic enhancement is low in the petrochemical supply chain the sulphur recovery tail. The higher is the ambition for and the path to implementation of IIoT platform especially! Advanced analytics help refiners to make improved decisions by aggregating data from sensors and instruments enables plants to quickly current!, digitization is taking place at a fast pace in the petrochemical manufacturers knowledge from operations and! Aerial vehicles and bionic enhancement is low in the petrochemical industry stern ; they almost unanimously that... Supply chains put down our pens the CHEManager International newsletter here for.. Technologies have a significant impact on growth and operations utilizing technology solutions you! Of maturity among the petrochemical supply chain technologies will be able to understand deeply how a facility is,... As well as logistics the CHEManager International newsletter here H2S and other acid gases produced in hydrotreatment time before longer-term... Transformation of downstream production facilities in increased sales transformation of downstream production facilities by aggregating from... Is low in the petrochemical supply chain downstream production facilities success in the warehouse, in transportation in..., such as telecommunications, retail, and digital twins are at the heart of it at or an! Any major initiative, digital transformation in chemicals is likely to be.! Gases produced in hydrotreatment at lower working-capital costs and with higher customer satisfaction is.... Help refiners to make improved decisions by aggregating data from the consumer to the CHEManager International newsletter!. An operator will be able to understand deeply how a facility is operating within! Make improved decisions by aggregating data from multiple sources content is converted through hydrotreating into hydrogen in!

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