Richard Ledgard explains how ABB has restructured its MV business to respond to the changing nature of the oil, gas and petrochemical industries, as rising oil prices contribute to an unprecedented demand for electrical equipment.
MV (medium voltage) control equipment at 33kV,11kV and 6.6/3.3kV levels plays a key role in oil and gas processing plant, not just for heat, light and power, but also electrical supplies for the process systems. In fact, electrical equipment represents something like 10 per cent of the capital in an oil processing facility, and in the case of liquefied natural gas (LNG) facilities this can be greater still. So, as the rising price of oil continues to fuel the growing demand for the fast-track construction of huge-scale petrochemical plant, it has also created a surge in demand for MV products.
This MV boom has created some major challenges for ABB. It is not just a case of ensuring that we can meet demand. We are also striving to help customers to maintain their project costs in the face of potential shortages in key raw materials such as steel and copper - created largely by huge industrial growth in China. At the same time, we have been adopting some new approached to meeting the requirement of the Engineering, Procurement, Construction (EPC) contractors.
SIMPLICITY AND CLARITY
Previously, customers would issue separate enquiries for MV switchgear packages, the protection and control equipment and the SCADA interface needed to link them into the ENMS (Electrical network Monitoring System). However, EPCs now place a great emphasis on simplicity and clarity. They want a partner to manage the MV package on their behalf. The major benefit of this approach is that it enables detailed orders to be placed with ABB before the final design is complete. We can then reserve the production capability and pre-order raw materials, to ensure that the equipment is available to meet delivery requirements. The partnership principle is being expanded as ABB enters into frame contracts with end users during the Front End Engineering Design (FEED) development of the project.
ABB has also restructured its MV business by bringing together our expertise in switchgear and distribution automation (covering protection and control and SCADA systems) within a single function - to provide an effective single point of contact. At the same time, we have rationalised our product range based on the output of a number of specialised global factories. This enables us to supply a fully integrated MV switchgear solution, based on a common platform, irrespective of the project’s geographical location. As well as smoothing the procurement process, the tangible benefit is a turn-key solution, delivered on schedule, with a significant commercial advantage to the customer.
UNIGEAR
An excellent example of simplicity in action is our new UniGear ZS1 switchgear - the world’s first ‘one size fits all’ MV primary air-insulated (AIS) distribution switchgear rated at 12-24kV. From a single platform, UniGear ZS1 can meet the individual specifications of each market, while at the same time giving global operators a standardised product that offers consistent quality.
ABB is also able to offer specialist solutions on a project basis. In a recent application for an LNG facility, we offered a variation of our standard double busbar arrangement to provide a space-efficient solution, where a number of LNG pumps required reduced-voltage starting when the main plant supply was lost. This solution has now been adopted in a number of similar applications, as in addition to the space savings there is a significant commercial advantage in using redundant reduced-voltage starters across any number of LNG pumps.