As capital expenditure restrictions tighten and equipment upgrades get shelved, process efficiency audits and a change in purchasing behaviour could help petrochemical and refining companies weather the COVID-19 aftermath, according to Aggreko.
With process, production and operations managers continuously having to deal with issues such as plant inefficiencies, Aggreko has said that there could be a lack of awareness around what can be achieved without significant investment.
The impact of the COVID-19 crisis on the petrochemicals and refining industry appears to vary across the value chain with some sectors taking a major hit, and others keeping afloat. LPG, for example, appears to be helping a number of firms recover from COVID-19 losses as more people stay at home. According to GlobalData Energy, the demand growth of key end-use petrochemicals is expected to recover sharply in 2021 as a rebound in global economic activity is foreseen, following a drastic dip in 2020.
Aggreko’s has launched a new campaign that is centred around encouraging companies to look at their processes from a new angle, considering how they can do more with less as industries recover.
“Improving process efficiency can be achieved through a number of Aggreko’s core applications, that are often sadly overlooked, purely due to perception. It’s our job to raise the awareness of what can be achieved” said Danny Quinn, Petrochemical and Refining Sector Manager at Aggreko Northern Europe.
In Aggreko’s market survey of over 200 energy managers last year, 59% had an investment for new equipment to reduce energy consumption turned down in the last five years due to CAPEX restrictions. However, 45% said they never hire equipment to avoid CAPEX restrictions. Aggreko expects the percentage of new equipment requests to be turned down to only increase since the COVID19 outbreak.
“In order for petrochemical and refining companies to emerge stronger as the pre-COVID pace of life begins to resume, implementing cost-effective yet simple changes is vital,” continues Danny. “Strategic hire projects are already helping many companies overcome issues around supply chain, CAPEX limitations and failing equipment right now. A full efficiency audit will help plant, production and operations managers think about new ways to make their processes more efficient.”
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/12082020/aggreko-recommends-efficiency-projects/
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