With advances in technologies that allow for the extraction of oil and gas across the U.S. shale plays, natural gas has become one of the fastest-growing energy resources in the country. In response, the country's natural gas companies are on a fast track to build out the infrastructure needed for transportation, processing and storage.
Increasingly aggressive project schedules have become the norm, and maximizing speed-to-market is an absolute imperative. But equally important is the ability to meet QA/QC standards, reduce safety risks and control capital spending by minimizing the potential for cost overruns. Likewise, as owners choose an execution methodology centered around the early procurement of a standard cryogenic plant (SCP), it is essential that the remaining balance of plant meet both the design of the core plant and the preferences and standards of the owner's specific needs. To achieve this, a contractor must have extensive expertise in the core technology being used and possess the ability to quickly decide which customizations are needed in order to best fit the owner's requirements.
It is for these reasons that energy companies are drawing on the resources and expertise of contractors that have deep experience in the design and engineering, procurement and construction management of both conventional and modular construction, and can offer a range of services from concept through commissioning.
Equipment components that are well-suited for modularization include heaters, filters, pumps, pipe racks and the motor control center.
Benefits of modular construction
Maximized speed-to-market, minimized cost. Modular construction allows for major elements such as civil work and fabrication to be completed simultaneously, reducing costs and schedule. Alternatively, conventional stick-built facilities, where most of the work is performed on-site, rely on a more linear schedule that requires one task to be completed before another can begin. By its nature, conventional construction also puts projects at greater risk for schedule slippage due to weather, site labor issues or delays in receipt of equipment.
Modular construction can also help maximize speed-to-market in remote regions where skilled labor may not be available.
Reduced risks, improved safety outcomes. Modular construction also results in better safety performance. Customers benefit from a controlled workshop where modules are fabricated by consistent, skilled personnel who have familiarity with their work and their environment. Customer supervision is also more readily achieved in the controlled environment of the shop rather than remote field locations.
Conversely, when conventional construction methods are used, a greater number of people are on-site at the same time. This congestion can impact overall safety risks and project schedule.
Improved quality. Perhaps best of all, when modular construction methods are used, equipment can be fabricated and assembled to ensure precise fit-up, and testing can be completed before shipping. The result is better quality, fewer safety risks, and faster plant commissioning and start-up on-site.
For natural gas companies building multiple facilities, modular construction can also offer a safe, consistent, repeatable process, providing they choose the right contractor.
Finding the right contractor
Proven expertise in modular and conventional construction. When identifying the right contractor, project owners should look for one that has proven expertise in both modular and conventional construction. Ask about their experience in defining scope and identifying site-specific issues. Based on site location and equipment size, not all parts of the planned facility may lend themselves to modular construction; consideration might also need to be made for unique equipment spacing requirements, transportation and project sequencing. Having a contractor with expertise in both conventional and modular construction will ensure a more holistic approach is taken and greater consideration is given as final design decisions are made.
Case in point: When Matrix PDM developed the engineer-led EPC strategy to support The Mosaic Co. for a specialty process unit project that included material handling systems, consideration had to be given to which pieces of the project could be executed modularly and which needed to be built on-site.
The project had an aggressive schedule and a small geographic footprint available for facility construction, as well as limited lay-down space. The engineer-led approach provided by Matrix PDM allowed for collaboration between the Matrix team, the owner and the construction team to develop a strategy that mixed conventional construction with a modular approach for the facility. Many of the components of the facility required significant, complex welding and fabrication that took nearly 150,000 man-hours to execute and demanded a level of quality that was best suited for off-site modular construction. The modules were fabricated, tested and completed off-site in a controlled environment and shipped by truck and barge to the project site. The schedule and construction strategy allowed the modules to be installed in their final location as they were delivered, minimizing space requirements on-site.
Fabrication, planning and logistics. Finally, ask about fabrication capabilities and the related facilities being used.
Do they have the capacity to build and assemble the modules at their facility? Do they have testing capabilities on-site to perform proper quality control testing? Do they have easy access to roads, rail and -- in the case of larger modules or international project sites -- deepwater shipping? Do they have expertise in planning and logistics to ensure equipment will be delivered to the project site at the right time? Is the contractor experienced in all aspects of installation, including required rigging and on-site fit-up?
Make sure the contractor's approach takes into account the most logical extent to which a project can be modularized by considering transportation logistics, installation sequencing on-site, and safety in both transportation and movement.
Above all, do your homework.
When it comes to fast-tracking natural gas infrastructure, the benefits of modular construction are significant, but only with the right contractor.
For more information about this topic, contact Bevan Houston at (918) 624-5439 or bevanhouston@matrixpdm.com, or visit www.MatrixPDM.com.
