digitization in petrochemical industry

Request a consultation with TruQC. 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. Case Study I: The journey to digitalisation 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. 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. Interestingly, customers are even more stern; they almost unanimously report that the sector is lagging. Improving on-time, in-full deliveries at lower working-capital costs and with higher customer satisfaction is paramount. As such, they act as the catalyst of digital innovations in the petrochemical supply chain. 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. Three out of four survey participants acknowledge that the petrochemical sector is lagging behind other sectors. These form the backbone of automated data collection systems, process simulation modelling and scheduling. A value focused approach is taken to leverage IIoT implementation and make refiners more profitable. Phased implementation of the system was planned for the refinery. Digital technologies and the Industrial Internet of Things (IIoT) are major forces that can transform the whole industry. A process simulation model was also developed for the sulphur system. 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. But it is a critical start. 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. There is a need for investment in developing these capabilities. The majority of the participants in the EPCA study report an increase in efficiency and productivity, as well as an improvement of customer service. Start-up companies are disrupting traditional logistics flows. •    Reducing unplanned downtime with increased rate of asset utilisation The future of work is increasing digital, and nowhere is that more evident than in manufacturing. 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. document.write(CurrentYear) As in many other sectors, digitization is taking place at a fast pace in the petrochemical sector. The solution combines ‘deep domain’ knowledge from operations technology and information technology for online analysis. Nearly 240 managers and experts in the petrochemical supply chain participated. The research study shows that managers in the petrochemical supply chain are well aware of the impact of digitization. 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. These economics based decisions use continuous comparisons between designed and actual performance. 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. figure 3). Click here for more information. Transforming the petrochemical industry This digital transformation will affect the petrochemical industry in three main ways. Functional excellence has generated significant productivity improvements over the past two decades. Beyond digitization (converting analog information to digital) and digitalization (the technology-driven shift to business processes) lies digital transformation. 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. The customers are actually an important driver of digitization (cf. Back in 2006, Clive Humby at Tesco said the almost prophetic words “data is the new oil.” Time proved him right. 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). The acid gas removal unit is used to separate and concentrate H2S and other acid gases produced in hydrotreatment. Logistics service providers are investing in end-to-end visibility across the chain. •    Detection of small to large scale causes of efficiency losses Mboss is a proprietary software platform written especially for sulphur systems in the refining, petrochemicals and gas industries. Firstly, the risk of “de-humanizing” the supply chain needs attention. Streaming data from sensors and instruments enables plants to quickly assess current conditions and identify warning signs for abnormal operations. We experience every day how data and digital applications change the way we communicate, the way we live, and the way we do business. About half of the participants admit being still in the starting mode. •    Lowering overall process risk, thus improving safety Advertising Opportunities Print, Digital & Content Solutions. var CurrentYear = new Date().getFullYear() 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. Asset challenges 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. •    Reducing maintenance costs. The sulphur recovery process converts H2S to elemental sulphur (see Figure 1). So, every industry is either at or near an inflection point for digital transformation. All Rights Reserved. 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. 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. But we have to take the first step and put down our pens. Solution Could it be a matter of time before these longer-term benefits materialize? 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 software integrates data with multiple applications and layers of data validation and intelligent data analysis, and KPIs are generated and visualised in the dashboard. And, the closer to the customer, the higher is the ambition for and the achievement of digitization. However, there is still plenty of scope for improvement. Learn more about TruQC’s success in the petrochemical industry. How could digital transformation improve plant reliability and integrity in the Petrochemical Industry? 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. Digitalization in the petrochemical industry PI sets new standards & launches additional customer touchpoints at the #EPCA53 in Berlin. The global chemical industry can benefit from Innovation in downstream industry means operating facilities at higher operational efficiency, less downtime and better safety. In a recent AFPM webinar Bruce Taylor, director of digital transformation at Sinclair Oil and Chair of AFPM’s OPCAT Committee, described digital transformation … CHRISTOPHER JOSEPH and JOHNSON DOMINIC What does digitization mean for the petrochemical supply chain? As in many other sectors, digitization is taking place at a fast pace in the petrochemical sector. This report focuses on the current state of automation in the petroleum/chemical industry… 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. Digitalization is the hype. Investments are planned mainly in proven technologies. This website uses cookies to optimise your user experience. The study clearly shows a higher level of maturity among the logistics service providers than among the petrochemical manufacturers. They may be considered as a threat for some, yet as an opportunity for other companies. If and when investments in these technologies will be seen, it will most likely be in niche applications in the supply chain. 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. Logistics Service Providers Act as Catalysts. 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? Digitization casts a wide net of applicable industries that it could benefit. 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. Factories are becoming smart by introducing new process technologies, often referred to as Industry 4.0 or Internet of Things (IoT). Not only is there awareness of the importance and impact of digitization, there is also a sense of urgency. Indian Chemical News is a media company with interests in online publishing and industry events related to the chemical and allied sectors. 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. The case studies explain how the digitalisation journey started, the challenges faced, and the path to implementation of IIoT. Especially for logistics service providers this also results in increased sales. figure 2). Key Considerations for Fuel and Petrochemical Companies Pursuing Digital Transformation. 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. •    Decision making support and improved operation through continuous monitoring and by providing instant access to information The solution focuses on optimisation of sulphur removal using analytics based on data from the sulphur circuit. figure 1). 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 … 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 pressure to digitize is mainly coming from the market and from outside the petrochemical industry. The customers seem to “push” digitization into the supply chain, all the way from the consumer to the refinery. Proven and new technologies are introduced on the shop floor, in the warehouse, in transportation and in many other logistic activities. The benefits of such IIoT enabled tools include: Download (PDF / 0.56MB) The introduction of IIoT technologies is helping two companies improve their decision making and performance. READ MORE. As with any major initiative, digital transformation in chemicals is likely to be challenging. IIoT enabled digital systems with advanced analytics help refiners to make improved decisions … E-commerce is changing distribution channels. The first is using digital-enabled approaches to improve companies’ business processes, which can be called functional excellence. Improved collaboration with suppliers is an often-mentioned benefit. Helium Consulting. The application integrates visualisation of key performance indicators (KPI) and process analytics. Refineries are generally equipped with process automation technologies including DCS, HMI, SCADA, data historian, and so on. 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. 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. . When you optimize your refinery shutdown utilizing technology solutions, you make every facet of your turnaround planning more efficient. The petrochemical industry is a vital component of numerous industrial processes as it provides raw materi… What does digital transformation mean for the Petrochemical Industry? 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. Mboss integration is shown in Figure 2. Key findings from this Half of the participants in the research report that it will even change the way they do business. Copyright © 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. And it gradually finds its way into other sectors, including the petrochemical industry. Digital provides the means to unlock a new level of productivity enhancement. •    Improved monitoring of energy use to increase operating efficiency Operating challenges The sector may be lagging… yet, there is a lot of ambition. 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. 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. Even more stern ; they almost unanimously report that the petrochemical supply chain eleven. Core refinery challenge sulphur is present in crude oil and gas industry, the... A huge impact on growth and operations have to take the first step and put down our pens using. How digital is the ambition for and the path to implementation of IIoT digital is the petrochemical supply,! To separate and concentrate H2S and other conversion facilities online analysis overall interest in,. Current digitization of the Indian chemical News is a need for investment developing. 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