HomeLearnCase StudiesCase Study: Increasing Turnaround Cycles with RBI: How One Client Forecasted CAD 7MM in Inspection Savings

Case Study: Increasing Turnaround Cycles with RBI: How One Client Forecasted CAD 7MM in Inspection Savings

Posted On:January 7, 2018 Updated On:September 28, 2023
Case Studies

Learn how we helped a Canadian-based energy company optimize their turnaround cycles for a savings amount of CAD 7 million.

The Challenge

Amidst the current challenging economic environment (sinking crude oil prices), Canada is facing extreme business complications due to its sliding currency value. This declining value in its dollar is causing Canadian businesses to shrink capital budgets and spending. Now, more than ever, companies are looking for ways to maximize return on investment from ongoing and future projects.

Pinnacle’s client, a Canadian oil and gas company, is facing serious challenges in the current market conditions. In response to an economic downturn, this company identified the need to implement an advanced asset integrity program focusing on safety, efficiency and overall cost optimization, as its current program placed a known and significant drain on financial resources. A more advanced and strategic program would give the company the tools it needed to utilize its available resources efficiently.

Pinnacle's Solution

Pinnacle was chosen as a third-party vendor to develop RBI plans for a large gas plant in Western Alberta. Pinnacle delivered a customized solution, utilizing an industry standard approach and software package, based on the client’s specific needs. As part of the project workflow, Pinnacle assessed factors such as age, design, and duty for each piece of equipment, in order to arrive at a semi quantitative risk level. Assets were then ranked by their level of risk to create a prioritized inspection plan. Pinnacle was therefore able to advise where and when to focus inspection efforts, as well as the appropriate inspection methods to utilize in order to accurately detect damage.

Results

By utilizing Pinnacle’s services and expertise, the company achieved its goal of an optimized inspection plan, resulting in significant return on investments. In addition to cost savings, the company experiences a safer environment and improved compliance. The client now enjoys the following business benefits:

Optimized Costs:

Completing the RBI analysis enabled the facility to optimize its turnaround inspection intervals. Historically, the facility maintained a three-year turnaround cycle. By implementing a RBI program, the facility was able to increase the turnaround cycle to five years, thus skipping a planned turnaround once every 10 years. This optimization led to a forecast savings amount of CAD 7 million.

Risk Mitigation:

This effort delivered a prioritized inspection plan based on the risk of failure of facility equipment. When applied, these plans mitigate the risk of unplanned downtime due to equipment failure, and in turn reduce the dangerous effects caused by startup/shutdown processes.

Improved Compliance:

The project delivered complete and organized sets of documentation that helped the client improve compliance with industry standards and regulations.

Overall, Pinnacle’s efforts have enabled the customer to achieve its integrity, safety, and compliance goals, resulting in an efficient long term strategy to significantly enhance return on investment.

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