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Valero Energy Corporation Bill Greehey Refinery Corpus Christi

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<strong>Valero</strong> Refining Texas LP<br />

<strong>Bill</strong> <strong>Greehey</strong> <strong>Refinery</strong><br />

<strong>Corpus</strong> <strong>Christi</strong><br />

<strong>Refinery</strong> <strong>Energy</strong> Initiatives


<strong>Valero</strong> Overview<br />

• <strong>Valero</strong> <strong>Energy</strong> <strong>Corporation</strong> is a Fortune 500 company<br />

based in San Antonio, and is North America’s largest<br />

independent petroleum refiner and marketer. <strong>Valero</strong><br />

supplies fuel and products that improve people’s lives<br />

with 15 refineries and 10 ethanol plants stretching<br />

from California to Canada to the Caribbean.<br />

• <strong>Valero</strong>’s efforts in alternative energy range from<br />

production of corn ethanol to wind energy to<br />

investments in emerging bio‐fuels development.<br />

• <strong>Valero</strong>’s company‐owned retail Corner Stores offer<br />

customers fast, friendly service in a safe and clean<br />

environment


<strong>Bill</strong> <strong>Greehey</strong> <strong>Refinery</strong><br />

Overview<br />

• <strong>Valero</strong> commissioned the grass‐roots <strong>Corpus</strong> <strong>Christi</strong> refinery in 1983, now<br />

referred to as the <strong>Bill</strong> <strong>Greehey</strong> <strong>Refinery</strong> West Plant<br />

• In 2001 <strong>Valero</strong> acquired a 115,000 BPD refinery, now referred to as<br />

the <strong>Bill</strong> <strong>Greehey</strong> <strong>Refinery</strong> East Plant<br />

• East and West plant facilities have a total feedstock throughput capacity<br />

of about 315,000 BPD<br />

• <strong>Refinery</strong> has three independent steam systems and two fuel gas systems<br />

– East and West fuel gas systems receive gas from a third party supplier in<br />

addition to internally produced gasses<br />

• Hydrogen is purchased from two outside suppliers as well as produced<br />

internally<br />

– East, West and <strong>Valero</strong> Three Rivers <strong>Refinery</strong> hydrogen systems connect via<br />

third party supplier networks as well as <strong>Valero</strong> owned East/West tie line<br />

• The refinery purchases power as well as produces power from internally<br />

produced waste energy


Historic <strong>Energy</strong> Activities<br />

• Steam Trap Program<br />

– Surveys completed every one to two years<br />

– Costs associated with improperly functioning traps are quantified and repairs scheduled<br />

– Historic failure rate has been 3.5%<br />

• Corporate <strong>Energy</strong> Scorecard<br />

– Program has been in place since 2006<br />

– Individual items reported include such things as Solomon EII, heater and boiler excess air and stack<br />

temperatures, Crude Unit heater approach temperatures, steam balancing and venting, hot rundown<br />

giveaway, slop reprocessing, amine strengths and loadings and ammonia content of stripped sour waters<br />

– Individual items are weighted and an overall score assigned<br />

• Weekly Fired Heater Report<br />

– Program in place since 2007<br />

– Excess air and stack temperature targets have been established for all major fired furnaces and boilers<br />

– Reports submitted weekly with actual values and deviations from targets<br />

– Costs of deviations from target are calculated based on current fuel values<br />

– Results as well as actions required to correct deviations are reviewed with Corporate Operations<br />

Management weekly<br />

• Leak Detection and Repair Programs<br />

– Emphasize operating practice of reporting leaks for prompt repair<br />

– Follow up with consultant surveys


Historic <strong>Energy</strong> Activities<br />

• Monthly <strong>Energy</strong> Business Unit Review<br />

– Monthly teleconference held with all refineries, corporate energy personnel and corporate operations<br />

management<br />

– <strong>Energy</strong> Scorecards, Weekly Heater Reports and results of <strong>Energy</strong> Stewardship Program are reviewed<br />

– Provides a forum for lessons learned to be communicated across the corporation<br />

• Solomon <strong>Energy</strong> Intensity Index, EII<br />

– Calculated monthly and reported to corporate with other Solomon indicators<br />

• Capital Project Design Reviews<br />

– All capital projects subject to design review that includes optimizing energy consumption according to<br />

corporate return on capital requirements<br />

• <strong>Energy</strong> Coordinator<br />

– A senior member of the engineering staff also functions as the <strong>Refinery</strong> <strong>Energy</strong> Coordinator<br />

– Responsibilities include maintenance of <strong>Energy</strong> Scorecard, Weekly Heater Reports and Solomon EII<br />

calculation<br />

• Utility Balances<br />

– Spreadsheet based tools retrieving information from the refinery historian are available for technical and<br />

operations management use in monitoring and balancing systems<br />

– Real time balance information also displayed for operations staff use<br />

– Steam, fuel gas, power and hydrogen systems are included


Corporate <strong>Energy</strong> Stewardship Program<br />

Overview<br />

• Initiated in 2007<br />

• Involves all refineries in corporation<br />

• Introduced to <strong>Bill</strong> <strong>Greehey</strong> <strong>Refinery</strong> in 2009


Corporate <strong>Energy</strong> Stewardship<br />

Program Basics<br />

• Program begins with an energy gap review<br />

conducted by plant personnel, corporate<br />

personnel and an energy consultant<br />

• All units and utility systems are reviewed<br />

• Items from gap reviews are approved and<br />

entered into the <strong>Energy</strong> Log<br />

• The <strong>Energy</strong> Log is spreadsheet based and<br />

contains information on the item, anticipated<br />

benefits, responsible parties and schedule for<br />

review and/or implementation<br />

• Priority is given to non‐capital items


Corporate <strong>Energy</strong> Stewardship Program<br />

<strong>Energy</strong> Models<br />

• Consultant used to build energy input models<br />

for all units.<br />

• Past best performance is determined and<br />

used as the basis for current static targets.<br />

• This information is presented graphically and<br />

in tabular format and is reviewed by<br />

management, operations and engineering<br />

daily


Corporate <strong>Energy</strong> Stewardship Program<br />

<strong>Energy</strong> Team<br />

• <strong>Refinery</strong> <strong>Energy</strong> Team was formed<br />

• Members of the team include Operations Director,<br />

Complex Managers, Engineering Director, <strong>Energy</strong><br />

Coordinator, Technical Services Manager and others as<br />

needed<br />

• Makeup of team differed from other <strong>Valero</strong> Refineries<br />

in that team was made up of individuals with authority<br />

to implement actions quickly<br />

• Weekly team meetings are held where <strong>Energy</strong> Log,<br />

Weekly Heater Report and other energy related items<br />

are reported and reviewed


Corporate <strong>Energy</strong> Stewardship Program<br />

Dynamic <strong>Energy</strong> Targets<br />

• Next phase of program involves setting<br />

dynamic energy targets for individual units<br />

and refinery as a whole<br />

• Consultant utilized to regress plant data to<br />

determine energy consumption correlations<br />

according to unit conditions, severities, etc<br />

• This phase of program currently being<br />

prepared for rollout


Corporate <strong>Energy</strong> Stewardship Program<br />

<strong>Energy</strong> Dashboards<br />

• <strong>Energy</strong> Dashboards are being constructed to<br />

display real time information on monitors in all<br />

control rooms, individual desk tops and the<br />

corporate office<br />

• Dashboards have drill down capabilities to<br />

determine what items are not achieving targets<br />

on a unit and energy source basis<br />

• Deviations from target are coded to show<br />

magnitude of deviation<br />

• Exception reports are issued


Corporate <strong>Energy</strong> Stewardship Program<br />

Results to Date<br />

• Current captured savings are approximately<br />

twice the initial estimates and have provided<br />

a return on investment four times the<br />

minimum required by the corporation<br />

• Further savings are anticipated as the<br />

program progresses


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