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Caltex Refinery Commitment to Operational Excellence A Presentation to the Environmental Affairs and Tourism Parliamentary Portfolio Committee By Steve.

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Presentation on theme: "Caltex Refinery Commitment to Operational Excellence A Presentation to the Environmental Affairs and Tourism Parliamentary Portfolio Committee By Steve."— Presentation transcript:

1 Caltex Refinery Commitment to Operational Excellence A Presentation to the Environmental Affairs and Tourism Parliamentary Portfolio Committee By Steve Woodruff Caltex Refinery General Manager 23 August 2005

2 Safety Moment

3 First Aid 100 Eliminating ‘at Risk’ Behaviors & Hazardous Situations 10,000 Lost Time Injury/ Recordable Injury 10 Near Miss 1,000 1 Fatality Forward-Looking Predictive Preventative Historical Learning Look-back To prevent injuries, we must focus below the line Focus on injury prevention

4 An overview of the Caltex Refinery

5 Caltex refinery – then and now 1966:Refinery started up ( bpsd). 1970:More units added ( bpsd). 1975:Capacity increase ( bpsd). 1977:Debottleneck ( bpsd). 1978:North refinery built ( bpsd). 1990:Instrument modernisation project. 1992:Octane enhancement project. 1995:Unleaded petrol project. 1996:Jet fuel project. 1998:New steam boiler. 2000:Tailgas treating unit. 2002:Sulphur pastillation project. 2005:Clean fuels project. [PMG note: Graphics not included]

6 Chevron corporate vision Vision for Operational Excellence “To be recognised and admired by industry and the communities in which we operate as world-class in safety, health, environment, reliability and efficiency.” Dave O’Reilly Chairman and CEO Chevron Corporation

7 Caltex refinery mission 2005 – – 0 – 84.5 – 100 [PMG note: Graphics not included]

8 Refinery mission 0Injuries 0Incidents 84.5%Plant utilisation 100%Engagement with employees and external stakeholders

9 Our journey to world class environmental performance started 10 years ago

10 More than R450 million invested in environmental improvements

11 Progressive reduction in air emissions

12 A 79% reduction in sulphur dioxide emissions

13 Refinery Burner Fuel – Reduction of Sulphur Dioxide Emissions R 30 million  Control sulphur in burner fuel below 2 wt% sulphur  Minimise Fuel Oil firing  Maximum Gas firing  Gas is low in sulphur content  Sulphur in burner fuel part of crude selection Future Plans Work towards 100% gas firing

14 Sulphur Recovery Units – Reduction of Sulphur Dioxide Emissions R 71 Million Tailgas Treating Unit installed in 2000 Future Plans Continuous improvement in reliability and efficiency of unit

15 Our Journey continues Measurement Modeling Control Work with DEAT, City of Cape Town to meet requirements of new AQA Sources of sulphur dioxide

16 An 80% reduction in particulate matter (dust) emissions R 40 Million Installation of Electrostatic Precipitators in 1996/1997 Future Plans Continuous improvement in reliability and efficiency of units

17 Reduction in volatile organic compound emissions R8 million Installed tank seals on all floating roof tanks at the refinery Future Plans  Fenceline monitoring to collect baseline information on VOC emissions from the refinery [2005 – 2006]  Complete a R70 million upgrade of effluent plant [2005 – 2007]

18 Effluent plant upgrade (R70 million) Implementing new effluent project to improve quality of used water going out to sea. Project will reduce VOCs from effluent plant. Have had a number of meetings with kitesurfers to resolve issues, develop plans and build trust. Project work in progress to bring effluent treatment facilities in line with world class – equalisation & secondary treatment (Phase 3 & 4 of project) New effluent license issued Oct CalRef currently within permit specs although upgrade to be carried out to meet 2007 requirements [PMG note: Graphics not included]

19 Guiding Principles of Refinery Air Emission Reduction Plan  Focus on SO 2, VOCs, NOx, H 2 S, particulates, black smoke (opacity), flare  Alignment with Chevron vision for operational excellence  Alignment with new Air Quality Act  Evaluate options for improved measurement and reduction of air emission  Focus on technology investment and improving reliability  Continue to involve stakeholders

20 Community Air Quality Monitoring

21 Daily Average, Ground level SO 2 as monitored in Bothasig, Goodwood, Table View and Killarney

22

23 We are focusing on plant reliability to eliminate incidents

24 Incidents DateIncident Description 26 February 2003Black smoke from refinery stacks 04 July 2004Pressure safety valve lifted causing crude oil spray 10 January minute black smoke flare 13 January 2005Pressure safety valve lifted causing some diesel spray 04 February 2005Fire 14 March 2005Three minute black smoke flare

25 Strong reliability focus is our key strategy for eliminating incidents Reliability focus will improve environmental performance: Visible leadership and accountability Preventative maintenance Training and development Reinforce procedure compliance and pre-task planning Shutdown effectiveness [PMG note: Graphics not included]

26 Major projects in 2005

27 Joint venture between Caltex & Improchem to purify sewerage water for Potsdam refinery boilers using reverse osmosis Conservation Incentive – Saving drinking water for 6000 households [PMG note: Graphics not included] Water Recycling Project (R30 million)

28 Clean Fuels Project ( R200 million) Project to produce lower sulphur diesel (0.05 wt%) by end 2005 according to new government specifications [PMG note: Graphics not included]

29 Community Involvement Partnering with environmental groups and air quality authorities to implement fenceline air (VOC) monitoring. Introducing neighbours to the refinery. [PMG note: Graphics not included]

30 Thank You


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