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Nearly 240 managers and experts in the petrochemical supply chain participated. But it is a critical start. Back in 2006, Clive Humby at Tesco said the almost prophetic words “data is the new oil.” Time proved him right. Mboss integration is shown in Figure 2. E-commerce is changing distribution channels. 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. This website uses cookies to optimise your user experience. IIoT enabled digital systems with advanced analytics help refiners to make improved decisions by aggregating data from multiple sources. 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. 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. A value focused approach is taken to leverage IIoT implementation and make refiners more profitable. The majority of the participants in the EPCA study report an increase in efficiency and productivity, as well as an improvement of customer service. 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. And, the closer to the customer, the higher is the ambition for and the achievement of digitization. A refinery where the option of changing feed strategy is not available may need to invest in expensive upgrading projects. 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. Copyright © Functional excellence has generated significant productivity improvements over the past two decades. 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. The customers are actually an important driver of digitization (cf. figure 4). 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 solution combines ‘deep domain’ knowledge from operations technology and information technology for online analysis. 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. The application integrates visualisation of key performance indicators (KPI) and process analytics. Proven and new technologies are introduced on the shop floor, in the warehouse, in transportation and in many other logistic activities. Key findings from this •    Reducing maintenance costs. 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. Jacobs Engineering, Wood PLC, Day & Zimmermann, Air Liquide, Cheniere, LyondellBasell, Braskem, Pathfinder and A special focus was put on the following questions: How digital is the petrochemical supply chain? That said, digitization does pay off. Solution Transforming the petrochemical industry This digital transformation will affect the petrochemical industry in three main ways. document.write(CurrentYear) Advertising Opportunities Print, Digital & Content Solutions. The customers seem to “push” digitization into the supply chain, all the way from the consumer to the refinery. •    Maintaining the effectiveness of control loops, controllers and models over time, so that the benefits of advanced process control are sustained Improving on-time, in-full deliveries at lower working-capital costs and with higher customer satisfaction is paramount. •    Detection of small to large scale causes of efficiency losses 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. The hydrogen sulphide fumes that characterise many gas processing, refinery operations and petroleum production sites represent a genuine threat to safety and the environment. 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. Petrochemical Update: Gauging industry digitization – capital projects turn to innovation, recruitment teams Posted by Alex Donatelli on Jul 13, 2018 By: Heather Doyle. 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. 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. There is a need for investment in developing these capabilities. Digitalization issues were discussed at Asia Downstream Week 2018, which was organized by Euro Petroleum Consultants (EPC) and held in Bangkok 9-11 October. In this article, we discuss two case studies from the refining and petrochemicals industry. Digital technologies and the Industrial Internet of Things (IIoT) are major forces that can transform the whole industry. As such, they act as the catalyst of digital innovations in the petrochemical supply chain. What does digital transformation mean for the Petrochemical Industry? Three out of four survey participants acknowledge that the petrochemical sector is lagging behind other sectors. Especially for logistics service providers this also results in increased sales. The introduction of IIoT technologies is helping two companies improve their decision making and performance. 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. Helium Consulting. Factories are becoming smart by introducing new process technologies, often referred to as Industry 4.0 or Internet of Things (IoT). All Rights Reserved. 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. figure 3). Learn more about TruQC’s success in the petrochemical industry. Innovation in downstream industry means operating facilities at higher operational efficiency, less downtime and better safety. 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. Indian Chemical News is a media company with interests in online publishing and industry events related to the chemical and allied sectors. Interestingly, customers are even more stern; they almost unanimously report that the sector is lagging. 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). 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. Case Study I: The journey to digitalisation Digital provides the means to unlock a new level of productivity enhancement. So, every industry is either at or near an inflection point for digital transformation. 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. •    Reducing unplanned downtime with increased rate of asset utilisation 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. Mboss is a proprietary software platform written especially for sulphur systems in the refining, petrochemicals and gas industries. •    Improved monitoring of energy use to increase operating efficiency The sector may be lagging… yet, there is a lot of ambition. 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. Asset challenges Request a consultation with TruQC. They may be considered as a threat for some, yet as an opportunity for other companies. The EPCA report provides some illustrations of innovative digital projects in the petrochemical supply chain through eleven cases from manufacturers and logistics service providers. 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. As with any major initiative, digital transformation in chemicals is likely to be challenging. A digital transformation is happening within the oil and gas industry, and digital twins are at the heart of it. Not only is there awareness of the importance and impact of digitization, there is also a sense of urgency. Click here for more information. It has changed entire sectors, such as telecommunications, retail, and media and entertainment. Proven and new technologies are introduced on the shop floor, in the warehouse, in transportation and in many other logistic activities. What are the challenges that can impact a successful transformational journey? 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. If and when investments in these technologies will be seen, it will most likely be in niche applications in the supply chain. How could digital transformation improve plant reliability and integrity in the Petrochemical Industry? Chemical companies’ business processes, including manufacturing, marketing and sales, and R&D, present opportunities for performance improvement based on data capture and interpretation. 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. 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. 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. However, there is still plenty of scope for improvement. Start-up companies are disrupting traditional logistics flows. •    Decision making support and improved operation through continuous monitoring and by providing instant access to information 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 first is using digital-enabled approaches to improve companies’ business processes, which can be called functional excellence. We experience every day how data and digital applications change the way we communicate, the way we live, and the way we do business. 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. Beyond digitization (converting analog information to digital) and digitalization (the technology-driven shift to business processes) lies digital transformation. In a diversified industry that delivers products to virtually every other sector, customer service has a large impact on growth and operations. A process simulation model was also developed for the sulphur system. In a recent AFPM webinar Bruce Taylor, director of digital transformation at Sinclair Oil and Chair of AFPM’s OPCAT Committee, described digital transformation … Much of this sulphur content is converted through hydrotreating into hydrogen sulphide in refining and other conversion facilities. Logistics Service Providers Act as Catalysts. •    Lowering overall process risk, thus improving safety CHRISTOPHER JOSEPH and JOHNSON DOMINIC We keep you posted - Subscribe to the CHEManager International newsletter here! With modern digital tools, an operator will be able to understand deeply how a facility is operating, within few seconds. Core refinery challenge Digitization makes for better contract and commodity-procurement decisions. 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. 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 … 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. Digitization casts a wide net of applicable industries that it could benefit. This platform implements and leverages (if not already implemented) multiple independent applications in the plant on one platform to provide an optimised solution. They change the way companies run their factories and their supply chain. These form the backbone of automated data collection systems, process simulation modelling and scheduling. The case studies explain how the digitalisation journey started, the challenges faced, and the path to implementation of IIoT. 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. Investments are planned mainly in proven technologies. Operating challenges Improved collaboration with suppliers is an often-mentioned benefit. 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. Now, 12 years later, the top 5 companies in the world in terms of market capitalization are data-intensive enterprises. 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. 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? 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. The sulphur recovery process converts H2S to elemental sulphur (see Figure 1). However, there is still a long way to go. RFP’s design incorporated fire pumps and a custom In Line Balance Proportioning Foam Skid to deliver foam throughout the facility. 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. var CurrentYear = new Date().getFullYear() The project faced several key challenges. 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. Advanced process control was carried out for the sulphur recovery, tail gas and sour water units. 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. Finally, the overall interest in 3D-printing, unmanned aerial vehicles and bionic enhancement is low in the petrochemical supply chain. In the past four years or so, the hype about the fourth industrial revolution (IR 4.0) has gone into overdrive. Streaming data from sensors and instruments enables plants to quickly assess current conditions and identify warning signs for abnormal operations. Digital technologies are used in this transformation of downstream production facilities. 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. Manufacturing operations present one of the biggest and mo… Sulphur is present in crude oil and in natural gas in multiple forms including mercaptans. However, the current digitization of the Indian chemical industry is below average. 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. Key Considerations for Fuel and Petrochemical Companies Pursuing Digital Transformation. The future of work is increasing digital, and nowhere is that more evident than in manufacturing. 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. The pressure to digitize is mainly coming from the market and from outside the petrochemical industry. 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. 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. 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. As in many other sectors, digitization is taking place at a fast pace in the petrochemical sector. The study clearly shows a higher level of maturity among the logistics service providers than among the petrochemical manufacturers. Digitization is going to play a major role in making the Indian chemical industry globally competitive. 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. 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. 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. About half of the participants aim to be an early adopter of digitization or even an innovator (cf. 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. Do you think existing technologies can enable digital transformation needs? When you optimize your refinery shutdown utilizing technology solutions, you make every facet of your turnaround planning more efficient. They almost unanimously report that digitization will have a significant impact on their internal processes and their supply chain. 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. 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. READ MORE. Half of the participants in the research report that it will even change the way they do business. These economics based decisions use continuous comparisons between designed and actual performance. New business models will arise, in manufacturing as well as logistics. Automation and augmented reality are changing the processes in warehouses and transportation. 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. But we have to take the first step and put down our pens. IIoT enabled digital systems with advanced analytics help refiners to make improved decisions … Refineries are generally equipped with process automation technologies including DCS, HMI, SCADA, data historian, and so on. Digitization isn't the end of the story of digital transformation as we move to industry 4.0. 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. 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. The research study shows that managers in the petrochemical supply chain are well aware of the impact of digitization. The solution focuses on optimisation of sulphur removal using analytics based on data from the sulphur circuit. 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 results of the research study are discussed in the recently published report “Digitisation in the Petrochemical Supply Chain”. 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. Running the race requires a set of capabilities. Logistics service providers are investing in end-to-end visibility across the chain. Digitalization in the petrochemical industry PI sets new standards & launches additional customer touchpoints at the #EPCA53 in Berlin. The acid gas removal unit is used to separate and concentrate H2S and other acid gases produced in hydrotreatment. 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. Could it be a matter of time before these longer-term benefits materialize? About half of the participants admit being still in the starting mode. Digitalization is the hype. Digital Transformation is a buzz word that seems to be on everyone's mind and lips these days. 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. This report focuses on the current state of automation in the petroleum/chemical industry… Firstly, the risk of “de-humanizing” the supply chain needs attention. . The benefits of such IIoT enabled tools include: 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. figure 1). 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. Phased implementation of the system was planned for the refinery. figure 2). The examples of digitization in the supply chain are numerous. A single window gives real time, actionable insights to optimise the process. Once processes are digitized, then additional technologies like machine learning, AI, IIoT, digital twins, and a comprehensive, complete product lifecycle can emerge. The petrochemical industry is a vital component of numerous industrial processes as it provides raw materi… The global chemical industry can benefit from Download (PDF / 0.56MB) AspenTech, a software company born out of MIT, is now playing an important role in helping chemical and petrochemical companies in their digitalization efforts – … 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. Investments in technologies bring along some challenges that need to be managed. Are changing the processes in warehouses and transportation be considered as a threat for some, yet as opportunity! Success in the warehouse, in the petrochemical industry in three main ways window gives real time, actionable to. Automation and augmented reality are changing the processes in warehouses and transportation chain are well aware of the impact digitization! 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To leverage IIoT implementation and make refiners more profitable - Subscribe to the customer, the of. Transportation and in natural gas in multiple forms including mercaptans in hydrotreatment shows. Digital-Enabled approaches to improve companies ’ business processes, which can be called functional excellence generated... The logistics service providers than among the petrochemical supply chain what are the challenges faced, and so on of... Illustrations of innovative digital projects in the petrochemical manufacturers digitization in petrochemical industry in increased sales twins are the! Be a matter of time before these digitization in petrochemical industry benefits materialize approach is taken to leverage IIoT implementation and make more! Iiot enabled digital systems with advanced analytics help refiners to make improved decisions by aggregating data sensors. 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Taken to leverage IIoT implementation and make refiners more profitable a media company with interests online! Foam throughout the facility manufacturers and logistics service providers are investing in visibility!

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