VENTURE I N T O T H E WO R L D O F I N D U S T R I A L R O TAT I N G E Q U I P M E N T No 6_ January 2007 FOCUS SUN AND STEAM POWER THE NEVADA DESERT MONITOR POWER IN THE VENEZUELAN PIPELINE SPOTLIGHT TOTAL CARE SOLUTIONS Power Generation s This issue of Venture reflects the breadth of our business: from the oilfields of Venezuela to the arid deserts of Nevada, we see how the power of technology can harness the gifts of nature and convert them into resources for the development of our social and industrial infrastructures. We follow the ICO pipeline from Eastern Venezuela to the West, where it is opening up the disused oilfields and pumping in fresh supplies. A lifeline, in fact, to the industries and towns of the western provinces. And we see how hundreds of mirrors catch and reflect the sun’s rays in the Nevada desert, sending the heat via oil troughs to a steam turbine, where it is converted into useful energy to power the local grid. Solar energy, as the foremost example of the renewables applications establishing themselves on the energy market, is an important development in creating the potential for a balanced energy mix, which gives us a stable, more robust basis for secure energy supply in the future. Common to all our projects is the need for support and service throughout the lifetime of the machinery. Service is undoubtedly the enabler in our industry which changes our business from a purely transactional one to a long-term relationship of cooperation. We introduce you in this issue to Juergen Vinkenfluegel, head of our service business, and to the concept of Total Care Solutions, whereby Siemens offers to undertake maintenance management of all your rotating machinery, regardless of manufacturer or supplier, and release you to concentrate on your core business. Best wishes for a successful New Year! Dr. Frank Stieler, President Siemens Power Generation Oil & Gas and Industrial Applications Photo: Florian Sander Dear Reader, V E N T U R E M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ E D I T O R I A L _ I M P R I N T _ 0 3 Inside 04 06 NEWS FLASH 11 14 Around the World Projects in Sweden, Quatar, Nigeria, and the latest extension of Siemens’ turbomachinery portfolio. FOCUS 16 04 Sun and Steam Power the Nevada Desert 06 Solargenix Energy is developing one of the largest solar power plants built worldwide in the last 15 years. Electricity will be produced by a 72-MW Siemens steam turbine-generator. MONITOR Power in the Pipeline 11 The brand-new 300-km pipeline linking Venezuela’s west with the existing gas infrastructure will be powered by ten Siemens gas turbine driven compressor trains. FACES Jürgen Vinkenflügel Head of service of Siemens Power Generation Oil & Gas and Industrial Applications. SPOTLIGHT 14 Total Care Solutions A bold approach to fighting downtimes through sophisticated industrial asset management. DATELINE 16 Trade Shows, Conferences, Seminars 19 January to April 2007 IMPRINT Publisher: Siemens AG, Power Generation Oil & Gas and Industrial Applications, Wolfgang-Reuter-Platz, 47053 Duisburg, Germany Responsible: Dr. Uwe Schütz Editorial Team: Lynne Anderson (Head), Manfred Wegner Contact: lynne.anderson@siemens.com Contributing Editors: Colin Ashmore, James Luckey Design: Formwechsel Designbüro, Düsseldorf Photography: Florian Sander Illustration: Maike Hamacher Lithography: TiMe Production, Mülheim a.d.R. Printing: Druckerei Köller+Nowak GmbH, Düsseldorf © 2007 Siemens AG. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical photocopying, or otherwise, without prior permission in writing from the publisher. F L A S H *1 Delivering 35% of Gothenburg’s district heating demands and 30% of its power requirements—Göteborg Energi’s newlybuilt combined-cycle cogeneration plant. *1 *2 Extending the steam turbine portfolio still farther into the lower output range— KK&K (Kühnle, Kopp & Kausch), headquartered in Frankenthal, Germany, have become part of Siemens. *3 Offshore platform with SGT-700 compressor train—a similar configuration will be used for Al Shaheen. *2 *3 Photos: *1: Göteborg Energi *2: KK&K *3: Oxy Qatar 0 4 _ N E W S V E N T U R E M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ N E W S F L A S H _ 0 5 Around the World *1 GOTHENBURG UTILITY INAUGURATES FIRST SWEDISH NEW-BUILD PLANT IN 20 YEARS November 15th, under ceremonial form, Göteborg Energi, the utility that provides heat and power for the city of Gothenburg, inaugurated the Siemens-supplied cogeneration plant in the Rya harbour area, proudly overlooking the River Göta. The new Rya combined heat and power plant is the first large-scale plant to be built in Sweden for twenty years, since the end of the nuclear boom. It will be used to meet the significant increase in demand for electricity and district heating, feeding some 260 megawatt (MW) of electricity into the Swedish grid. The power island for the plant comprises three 45-MW SGT-800 gas turbines and one 141 MW SST-900 steam turbine. This combined-cycle cogeneration, the standard optimal configuration for Siemens industrial power plants, yields a very high level of overall efficiency — almost 93%, the equivalent of a reduction in global carbon dioxide emissions of 600,000 tons per year. The plant will meet around 35% of Gothenburg’s district heating demands and 30% of its power requirements. After commissioning at the end of 2006, the architect-designed hi-tech plant will be totally unmanned, being controlled from a central control station in the city center. *2 SIEMENS EXPANDS ITS TURBOMACHINERY PORTFOLIO Late November the anti-trust authorities approved the Siemens takeover of the former KK&K (Kühnle, Kopp & Kausch). Headquartered in Frankenthal, Germany, the company develops, manufactures and markets steam turbines with a rating of up to 5 MW, as well as turbocompressors and fans for industrial applications. Says Dr. Frank Stieler, head of Siemens Power Generation Oil & Gas and Industrial Applications: “This latest acquisition extends our product portfolio in the industrial applications market segment still farther into the lower-output range. It also gives us access to growing market segments in Asia and North America, and to new customer groups, for example in the water treatment and effluent management industry.“ Siemens’ industrial steam turbine range now stretches from 45 kilowatt to 180 megawatt. Moreover, Siemens can offer a broad spectrum of smaller standard compressors in addition to large process gas compressors. *3 SIEMENS POSTS IMPORTANT NEW OIL & GAS ORDERS Siemens Power Generation Oil & Gas and Industrial Applications has received orders to supply ten compressor trains and five natural gas fired SGT-700 gas turbines for phase III of the Al Shaheen project of the customer Maersk Oil Qatar AS. Qatar Petroleum (QP) and the Danish company Maersk Oil Qatar have jointly planned the further development of the Al-Shaheen Field in Block 5, offshore Qatar. As part of the development plan, which will triple output, Maersk Oil Qatar will build and operate facilities for gathering and delivery of associated gas to Qatar Petroleum for utilization at their Mesaieed plants. A further major order has been received from Daewoo E&C of South Korea, encompassing two compressor sets and three gensets, all with 13-MW SGT-400 gas turbine drivers. The equipment will be supplied to Shell Petroleum Development Company of Nigeria (SPDC) for implementation in the Gbaran/Ubie integrated oil & gas project in Bayelsa State of the Niger Delta. Delivery for both orders is scheduled for early 2008. 0 6 _ F O C U S In the US State of Nevada, energy and environmental engineering firm Solargenix Energy is developing a significant solar power plant, one of the largest built worldwide in the last 15 years. The plant adds important capacity to state utilities’ obligation to increase power generation from renewable sources. Using parabolic trough technology, the electricity will be produced by a 72-megawatt (MW) Siemens steam turbine-generator. Photos: Florian Sander Sun and Steam Power the Nevada Desert V E N T U R E The word ‘vast’ is perhaps inadequate to describe Nevada’s desert. Its sheer scope, breadth and expanse are daunting. The mind can play tricks when judging distance. What looks to be a mile or so down the highway can suddenly turn into a 30-minute drive. Of course, this being desert land the climate and landscape can be extremely inhospitable. The southern region of Nevada, part of the Mojave Desert, has both mountainous and flat or uneven bush land, where away from the main towns you’d be hard pressed to find a living soul. It is also hot, with minimal rainfall and maximum sunshine every year. M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ F O C U S _ 0 7 Twenty miles from the bright lights, big city attraction of ‘Fabulous’ Las Vegas is the quieter and more relaxed Boulder City. Originally created in the 1930s as a home to the construction workers that built the nearby Hoover Dam, Boulder is the city with the largest geographical area in Nevada. Curiously, it is also the only city in the state with no gaming. In keeping with that tradition, exploiting the potential for solar power generation on ideal terrain and climate is anything but a gamble for the city. In fact, in these environmentally conscious 0 8 _ F O C U S V E N T U R E M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ F O C U S _ 0 9 times using Southern Nevada’s ample sunlight to provide electricity for 40,000 local homes is a sound energy policy that allows utilities to edge closer to legislative requirements for renewables. Power by the Public Utility Commission of Nevada. The approval allowed Solargenix to proceed with the development of its 64-MW solar power plant. RENEWABLE PORTFOLIO STANDARD Put simply, the plant uses solar parabolic trough technology to reflect the sun’s heat onto oil-filled reception pipes running through the mirror collectors. The synthetic oil is passed to heat exchangers on the power island, which transfer the heat to generate steam for the turbine. In 1997, the State of Nevada adopted a Renewable Portfolio Standard that placed a mandate on the two utilities —Nevada Power and Sierra Pacific Power—to use renewable energy to provide a minimum percentage of electricity consumption. A revision to that state law in 2001 meant that this amount should increase by 2 percent every two years. Each phase can be broken down as thus: 7 percent in 2005, 9 percent in 2007, up to 15 percent by 2013. A further amendment in 2005 saw the obligation rise to 3 percent every two years culminating in a 20 percent share for renewable energy generation by 2015. Investment in energy efficiency measures was also added to that renewable portfolio standard. A crucial part of the legislation expands the state’s commitment to solar power so that the technology provides 5 percent of renewable energy projects. The Nevada Solar One project currently under construction will go some way to supporting that ideal. In addition, the US Department of Energy (DoE) has issued a report that identifies suitable land and solar resources in Nevada that could produce over 600,000 MW of electricity using concentrating solar technologies. Currently, Nevada’s power consumption is less than 3 percent of this resource capacity. The DoE report also claims that the economic benefits far exceed the cost to develop this clean renewable energy source. ELDORADO VALLEY On a 400-acre site in Boulder City’s Eldorado Valley—just off the Route 93 highway linking Las Vegas and Phoenix — is a solar power complex that, once complete will be the third largest in the world. Solargenix Energy, Inc, a leading energy and environmental engineering company headquartered in North Carolina, is developing Nevada Solar One. Earlier this year, the Spanish renewable energy firm ACCIONA Energía S. A. purchased 55 percent of Solargenix. It is the skill, engineering and solar know-how of Solargenix and ACCIONA that drives the scheme, with more than a little help from the prime mover of course — a Siemens SST-700DRH industrial steam turbine-generator. The first stone for Nevada Solar One was laid at a special ceremony in February this year. This followed a long period of gaining planning permission and securing financing and tax incentives from the Nevada Commission on Economic Development. In September 2005, Solargenix announced the approval of amendments to their power purchase agreements with Nevada Power and Sierra Pacific Capturing the sun via this process is known as concentrating solar power (CSP). It uses curved (parabolic) mirrors to concentrate solar radiation on a thermally efficient receiver running the length of the trough. The receiver consists of a specially coated absorber tube embedded in an evacuated glass envelope. Absorbed solar radiation warms up the heat transfer oil flowing through the tube to almost 400°C (752°F). The system also uses a tracker, so that the line of the sun can be followed throughout the day. German company Schott AG is the manufacturer of the receiver tube technology, and for Nevada Solar One, Solargenix is using 19,300 of these units. POWER ISLAND For the power island, Solargenix awarded a contract to market-leading Siemens Power Generation in August 2005 for a high efficiency direct reheat SST-PAC-700RH steam-turbine generator set. The contract has also included stand-alone Simatic S7 control systems and installation and commissioning support plus staff training. The 72-MW SST-700 turbine has been manufactured at Siemens’ facility in Finspong, Sweden. It is a dual-cased geared engine using one high pressure (HP) and one low pressure (LP) module. The steam turbine was delivered to site mid November, and the plant itself should be commissioned in April 2007. Steam is generated via the heat exchangers at 700°F/1,250 psia. After passing through the HP turbine it is taken back into the steam generator for reheating and bringing LP steam up to 700°F again. This will further reduce the oil temperature back to the solar collectors and improve the overall cycle efficiency of the plant. The reheated steam is now admitted into the LP turbine to further generate power; it then enters a vacuum condenser where remaining steam is condensed to be pumped back into the steam generator again. This careful use of water is vitally important considering the desert location and value of water sources. It has also been a consideration for the plant’s cooling towers. But Solargenix is justifiably proud of the fact that the plant has no water discharge. Supplementing the heat cycle is a small, natural-gas-fired auxiliary boiler, which will be used at times when the sun’s radiation is not 1 0 _ F O C U S available, or during cleaning of the solar mirrors. The cycling capability of the plant is significant when dealing with likely variables in steam temperature and pressure. tion workers removed about three rattlesnakes a day. There were also tarantulas and “hundreds” of black widow spiders presenting, if not a danger, then at least a distraction to meticulously sort out. The steam turbine is coupled to a generator, which produces electricity at 13.8 kilovolt (kV), 60 Hz. Power is then stepped up by a transformer, to be distributed to the grid at 230 kV from the huge switchyard. With a separate (and unconnected) combined-cycle power plant adjacent to the solar plant this section of the desert is a curious mixture of bush land and a sea of transmission towers. IMPRESSIVE WILDLIFE Of course, working with this terrain has been another interesting aspect of the project groundwork. With a rocky, uneven surface, not to mention shrub and bush land, clearing 400 acres is a considerable task. And there have been other factors to take into account. Despite the harsh environment, there is wildlife that adapts to its surroundings and survives in the desert. On the road down to the site it is not uncommon for roadrunners to dart across the tarmac. But not all creatures great and small are particularly friendly. As a Solargenix official confirms, during the ground clearance opera- To give some idea of the scale of the plant, from the sites’ overall area of 400 acres, 251 are taken up by the solar array system. At a distance (and again we come to the sheer expanse of the Nevada desert) the plant looks like a small, flat, white mass. When the site draws closer its enormity is jaw-dropping; hundreds of huge CSP troughs with crystal clear mirrors reflecting the desert with a burst of deep blue and sandy brown colours. It is immensely impressive. As is the steam turbine solution that Siemens has provided for what was originally a tricky conundrum for the heat cycle of the Nevada Solar One plant. Producing a quality, proven product at low investment and life-cycle cost and one that has been manufactured, shipped and installed to meet customer commitments for on-time delivery, power output and availability is further testimony to Siemens’ solutions for every turbine application. V E N T U R E M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ M O N I T O R _ 1 1 Power in the Pipeline Designed by Venezuela’s state-owned oil company as a part of a vast new natural gas transportation system, a brand-new 300-km pipeline is being built to link the country’s western region with the existing gas infrastructure and the rich, but scattered, reserves from producing wells in the central and eastern regions. As well as making this clean, low-cost fuel available to many Venezuelans for the first time, the pipeline will enable gas to be used to boost oil production from mature wells. As part of this complex US$520 million project, Siemens is supplying a total of ten gas turbine-powered compressor trains, which will be installed by a Siemens-led consortium in compressor stations along the new pipeline. Covering a total area about two-and-a-half times the size of Germany, Venezuela is located on the northern tropical Caribbean coast of South America. The diversity and sheer beauty of its landscape so impressed the fifteenth century explorer Christopher Columbus that he called it the Tierra de Gracia — Land of Grace — which has become the country’s unofficial name. In contrast to its soaring mountains, the world’s highest waterfall, tropical forests and silver-sandy beaches which make Venezuela a magnet for tourists, the country’s burgeoning economy is based principally on the oil and gas industry. BIG OIL With proven oil reserves of around 76 billion barrels, Venezuela is ranked as one of the world’s largest producers. However, a number of the largest fields have been exploited for decades, with some of the oldest wells in continuous operation for almost 100 years, and production levels are now falling rapidly. Natural gas, co-produced with oil from existing wells as well as from more recent finds both onshore and offshore, is also currently being produced at an annual rate of nearly 30 billion cubic meters, a large proportion of which is being re-injected into fast-depleting oil reservoirs to increase their production. In combination, this vital industrial sector accounts for some eighty percent of the country’s export revenues and about a third of its total earnings. resource to its full extent. Today, as the price of oil continues to rocket, the country’s economy is booming with real growth in GDP approaching 10 percent, allowing previously shelved government plans for expansion to be reactivated. In 2004 the state-owned oil company Petroleós de Venezuela S. A. (PdVSA) awarded contracts to three local companies for the first stage in the construction of a huge new undertaking, the 300-km Interconnexion Centro Occidente (ICO) pipeline, known as the ICO project. This complex infrastructure project, due for completion in 2007, will connect gas-producing wells in the eastern and central regions with existing wells and new gas transmission systems in western Venezuela, partly to boost oil production and also to bring natural gas to consumers in that part of the country for the first time. A 106-km pipeline providing a connection between natural gas fields in Falcon state and the PdVSA Paraguana refinery complex, one of the largest in the world, has already been completed and will soon be delivering between 10 and 100 million cubic meters of gas per day, increasing progressively until it reaches 100 to 300 million cubic meters of gas per day. GOING FOR GROWTH Although the country has enormous reserves of natural gas, a lack of adequate infrastructure, such as a national grid-system for PICKING THE PATH One of the largest and most challenging pipeline projects ever undertaken by PdVSA, the ICO system for the bulk transnational transportation of natural gas, was originally planned nearly 20 years ago. The giant new line now under construction will comprise 230 km of 30-inch (762 mm) diameter and a further 70 km of 36-inch diameter (914 mm) pipe. The pipe is formed from special high- the transportation of bulk supplies of natural gas or an established country-wide distribution network serving urban and rural consumers, has meant that Venezuela has been unable to exploit this tensile steel capable of withstanding internal pressures of more than 4,600 bar, reducing both wall thickness and the number of welds, and is being used for the first time in Venezuela. Buried at a depth of about 1.2 meters in a 20-meter wide corridor, the line will snake its way across the coastal plain, avoiding the most mountainous terrain, following a precisely planned path selected as the most favorable from no less than 14 other routes originally surveyed in the late ‘80s. Although designed to pass close to towns and centers of population to provide these widely scattered communities with gas supplies for the first time, the route of the ICO pipeline also cuts through some of Venezuela’s most environmentally sensitive and internationally important areas, which are home to rare plant species, unique wildlife and archaeological sites. In consequence, consent for construction has only been granted by the Venezuelan government after the most rigorous scientific and ecological studies, covering the project’s impact on every aspect of local environments, with continuous inspections and environmental audits on every centimeter of the route as work progresses. As well as routing the pipeline unavoidably through a number of archaeological sites revealing pre-Colombian discoveries currently being studied by experts from around the world, the construction crews have to contend with engineering a total of eighteen separate river-crossings, many of which are in tropical rainforest environ- ments. Using conventional technologies, taking even large-diameter pipelines across rivers does not present a significant problem. However, official planning restrictions imposed by the Venezuelan government to protect the delicate environmental balance in these sensitive locations, prohibit any form of damage to all riverbank environments, requiring the design and use by the contractors of special-purpose systems, equipment and machines. The route also crosses the Morrocoy National Park, necessitating a major detour in order to follow an existing ‘service corridor’ through the park, used as the least-damaging transit route for power lines and a water pipeline. PERFORMING UNDER PRESSURE Representing one of the largest contract awards made by the stateowned company in recent years, the three compressor stations along the ICO pipeline will house a total of ten compressor trains supplied and installed by Siemens. These comprise STC-SV compressors supplied from the Duisburg plant, powered by 13.4-megawatt (MW) SGT-400 gas turbines built at the Lincoln factory in the UK. Six of the compressor trains are being supplied as high pressure units and four as low pressure trains, with all equipment Photos: Siemens, Illustration: Maike Hamacher 1 2 _ M O N I T O R V E N T U R E shipped to site via the Siemens facility in Houston, Texas, where the compressor trains were assembled and specially packaged for operation in a tropical environment. Three units are being installed at the Morón compressor station, four at Los Morros and a further three at Altagracia. The entire turnkey contract is being carried out by a local consortium headed by Siemens S.A, partnered by Caracas-based Jantesa, which has responsibility for engineering and procurement, with Confurca headquartered in Ciudad Ojeda undertaking civil works. Siemens will also provide full maintenance services for the turbocompressors over a fouryear contract period. The compressor stations will be monitored and controlled remotely through an optical fiber data-communications network being supplied by Siemens S.A. The stations will be linked to the primary control room at Anaco and with a secondary control system in Caracas. M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ M O N I T O R _ 1 3 ”We are able to improve the standard of living for literally thousands of people, providing new facilities to towns and villages, to scattered farms, communities and even to isolated dwellings.” IMPROVING LIVES Although Venezuela’s investment in the ICO pipeline is intended to boost the national economy through increased oil and gas production, the vast, long-distance construction project is also aimed at providing major social improvements for the widely scattered, mainly rural communities affected by the project. In line with the government’s demand that no less than ten percent of the entire project value must be returned to the communities involved, PdVSA is not only ensuring that gas will become available as a low-cost fuel for a large number of people for the very first time, but is undertaking a far-reaching social initiative affecting communities along the whole length of the pipeline. “This is the nicest and most exciting part of this project,” says PdVSA Project Manager Richard Tahan. “We are now able to improve the Richard Tahan, Project Manager, PdVSA lifestyle and raise the standard of living for literally thousands of people, providing new facilities in areas ranging from entire towns and villages, to scattered farms, communities and even isolated dwellings.” FISHING, FARMING AND FAMILIES Richard explained that the initiative is being split into four sectors. “The first will involve building and repairing roads, building new local medical centers, improving existing schools and re-housing widely separated and outlying families who currently live within 2.5 km on either side of the pipeline, in modern new housing.” He pointed out that the pipeline project involves installing electrical power, drilling wells for water for hydro-testing operations and installing the Siemens data-communications network. “Because all these utilities are already being installed along the route of the pipeline, it is quite easy for us to provide modern facilities for people in the vicinity. They will not only be supplied with drinking water and mains electricity, but will also have full access to telephones and a broadband connection to the internet,” said Richard. The second sector will include the development of the fishing industry in the coastal area of Rio Seco, with the provision of fresh drinking water and mains electricity, but also including the construction of refrigerated storage and ice-making facilities to support the local shrimping industry. The third and fourth sectors will cover the modernization and expansion of locally-based agriculture in both the Altagracia and Los Morros areas. In addition to increasing production and efficiency, additional investment in the agricultural and farming industry will provide future employment for local people currently employed on the construction of the ICO pipeline. WIN-WIN FOR SIEMENS The Anaco project represents not just a major contract win for Siemens, but marks a significant step forward in the further development of the company’s oil and gas business in Latin America. The ability to demonstrate successful implementation of both industrial gas turbines and latest-generation gas compression solutions under a turnkey contract in a tropical environment is providing a benchmark against which competing products and suppliers are measured and a win-win solution for Siemens and customers alike. 1 4 _ F A C E S Service Excellence through Speed and Customer Intimacy Managing the service business of Siemens Power Generation Oil & Gas and Industrial Applications means a tight agenda for Jürgen Vinkenflügel. Venture was lucky to get an hour's interview outlining the basics of just what service means on a global scale. Venture: Talking about global service networks, total care solutions, etc. — what are in fact the foundation stones of your service philosophy? Vinkenflügel: There are five basic criteria which ultimately determine our service performance. First and foremost — Safety. We run elaborate educational programs cultivating an HSE (Health, Safety, Environment) mindset throughout the company. Second, Quality, and third, On-time delivery, meaning that we’d rather cancel a delivery date than deliver inferior quality. Venture: Is ‘customer satisfaction’ not the first on the list? Vinkenflügel: It may be puzzling that we put ‘customer satisfaction’ fourth, not first. However, it is our understanding that customer satisfaction results from a supplier’s safety, quality and delivery performance, so we put those three first. Last but not least, we also have to achieve our business targets. V E N T U R E Venture: Your mission statement reads 'Service excellence through speed and customer intimacy'. What does that imply in practice? Vinkenflügel: Over the past decades, Siemens has acquired not just a number of leading turbomachinery companies, but also an extremely diverse range of machine fleets to be serviced. Currently, we are servicing more than 23,000 pieces of rotating equipment, including some which are more than 50 years old — forming a fleet of vastly different machines and manufacture, distributed all over the world. In order to do that, we maintain a global service network covering 4,500 people in 75 countries, and counting… So chances are high that a Siemens service point is indeed within reach. Plus, we have established 14 so-called ‘product lead centers’ specializing in certain types of machinery. Via an internet-based service platform, their expertise and digitized machine-related documents are available anywhere in the world with one click of the mouse. So we are not just near the customer in a geographical sense, but can also deliver excellent service by the depth and accessibility of our knowledge base. Venture: You mentioned machines that are more than 50 years old. How do you deal with the challenge of servicing such legacy assets? Vinkenflügel: In order to ensure continuity and quality of service of such machines, we are currently reviewing all related documentation, much of which exists in print form only. Once digitized and archived, these documents will also be available via the service platform mentioned before. Venture: How do you deal with service issues where there is no local service workshop? Vinkenflügel: There is a very high probability that there is a Siemens service representative wherever Siemens service might be needed. These service representatives are familiar with the complex structure of Siemens; they ensure a client gets a fast answer even if there is no full-fledged service facility nearby. Venture: And how fast is that? Vinkenflügel: Under normal conditions, our field service teams will be on site within 48 hours, or even 24 hours in some cases. We have nearly 900 top-trained employees on call — a must in number and expertise, if you want to keep that service promise. M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ F A C E S _ 1 5 Venture: In the Oil & Gas industry, independent workshops claim a considerable share of the service market. How does what they do compare to what Siemens does? Vinkenflügel: As an OEM, we can offer considerable advantages. First, we have all of the original documentation. No need for reverse engineering. Second, we have extremely knowledgeable field service personnel who are, by default, familiar with an extremely wide range of machinery. Third, as an OEM, we have upgrade and improvement competence. Notably in the process and oil & gas industries, process parameters are subject to change over time. Here, we can offer adaptation of machines and revamps, including lifetime extension packages and retrofits. Put in a nutshell: while independent workshops will never be able to offer anything but a re-engineered solution, Siemens always considers possibilities for machine improvement and, hence, optimum leverage from assets, too. Venture: You also offer training programs for customers' service personnel. Doesn't that cannibalize from your service share? Vinkenflügel: No. Reducing downtimes is the overall goal. In the event of a scheduled shutdown or a malfunction, much can be done by our customers’ service personnel in preparation for our field engineers to start their part of the job. To that end, these training programs provide for optimum use of resources. Which is a vital interest for both our customers and ourselves. Venture: What’s next in the pipeline that may mean a real difference in service schemes or quality? Vinkenflügel: Apart from making our service expertise, including documentation, available anywhere on a 24/7 basis, Siemens is also working to provide a common remote service platform for all steam and gas turbines. Today, machinery is switched off and serviced based on fixed schedules. However, with the help of a sophisticated remote monitoring solution, tomorrow we may switch to condition-based service. This can result in a substantial reduction of downtimes with related losses and costs. At the same time, the reliability of assets and shutdown prognosis will be improved. Venture: So continuous improvement is the real bottom line, then! 1 6 _ S P O T L I G H T Total Care Solutions Reducing downtime is a key responsibility of industrial asset management. Inspection and maintenance, overhauls and spare parts logistics are among the tools. However, with machinery, processes and facilities growing in number, scale and complexity, the provision of the required array of expertise and the scheduling of tasks become a major challenge. For many industries, it is time to consider outsourcing their maintenance to a reliable singlesource company. V E N T U R E Confronted by the situation where they are spending more time negotiating individual OEM service contracts than effectively running their business operation, plant operators are increasingly experiencing the need to find a company that can take on maintenance independently and cost-effectively, enabling the operator to concentrate on his core business. To respond to just this need, Siemens has integrated the major facets of industrial maintenance into a joint portfolio offering a fully-fledged one-stop-shop solution with substantial customer benefits in terms of total cost of ownership. The Total Care Solutions (TCS) portfolio includes round-the-clock service, maintenance planning, management, teleservice / monitoring, consulting, inspections, overhauls, spare parts, spare parts management, and training. M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ S P O T L I G H T _ 1 7 just in run-of-the-mill turbomachinery, but in a wide range of niche products, too. In Scotland, for instance, the SGT TM (Siemens Gas Turbine) service center at Aberdeen is a service shop set up originally by Ruston to maintain the large population of TB gas turbines on North Sea platforms. Other service shops have been added in strategic locations, in Bangalore, India; Queretaro, Mexico; Trenton, NJ, USA; Anchorage, Alaska, USA; and Port Harcourt, Nigeria. In total there are 16 such facilities. In Aberdeen and Lincoln a full load test of an overhauled gas turbine can be performed. The TCS group is based in Lincoln, UK, under the leadership of John Savage, who joined Siemens in 2004 to help implement the Total Care concept, having previously worked on similar schemes for compressor maintenance on oil fields in Nigeria. “The total care concept is common for specific groups of plant in the oil and gas industry,“ Savage explains. “And is becoming an essential rather than an optional extra. What we at Siemens are doing is providing a unified management structure for maintenance of the whole plant, avoiding the piecemeal contracts which would otherwise be necessary to take care of equipment from a multitude of sources. Under a single contract, we provide maintenance or replacement solutions for whole groups of rotating machinery. Furthermore we have a broad network of service companies from whom we obtain the relevant nonSiemens expertise.” Another is TurboCare, a joint venture of Chromalloy and Siemens with a network of companies around the world covering repair and maintenance of gas compressors, gas and steam turbines of other OEMs. Within that group, Turbine Services Limited (TSL) at Paisley, a few kilometers west of Glasgow, was formed by former employees of John Brown Engineering, who, for more than 40 years, were a GE Business Associate. TSL are specialists in maintenance, repair, and fabrication of components for the GE heavy frame gas turbines. With this experience the first Siemens TCS contract was awarded, by a leading Australian oil and gas producer, who owns and operates a plant located some 800 kilometers north of Adelaide, Australia. The plant has run for over thirty years, and has a collection of 96 pieces of turbomachinery. The actual contract for Total Care is with Siemens Australia, with John Savage’s team acting as consultants. Their job is to determine a fixed price for maintenance of all items of equipment included in the contract. In this case, they also undertook to find a local company with the basic engineering capability to handle maintenance of the balance of plant and ultimately to train the personnel to Siemens standards. NETWORK OF EXPERTISE NEW SERVICE CENTER IN AUSTRALIA Building the backbone of Siemens Total Care offer, a global network of partly or fully-owned rotating machinery service companies provides vast expertise not Consequently, after examining the market for a suitable partner, Siemens took over the Australian service provider ‘Southern Machinery Services’. The thirty 1 8 _ S P O T L I G H T ”Total service solutions to cover our customers’ requirements–that is what we offer.” John Savage, head of the Total Care Solutions service business employees have been fully integrated into the Australian national Siemens subsidiary and the worldwide workshop network. Not only can this reinforcement of services strengthen existing contracts, further growth in the Australian service market is anticipated as a result of the presence of a local workshop. The acquisition is an excellent example of the Siemens regionalization strategy to be as close to the customer as possible and live up to the 24/7 promise. ALTERNATIVES CONSTANTLY UNDER EVALUATION A TCS contract is not a static document gathering dust on the shelves. It can be extended to cover a wider scope of responsibility to undertake potential additional work in the refurbishment of existing machinery. This may include a review of parts stockholding, for example, and, where appropriate, offering alternative schemes for the management of those materials. Moreover, alternatives that might help to reduce total cost of ownership are always under consideration. For example, an old gas turbine, no longer manufactured, could be replaced by a current model where the fuel savings from, say, a 5 percentage points improvement in gas turbine efficiency were a sufficient return on the investment. Similarly, an outdated analog control system could be replaced by a new Siemens digital control system. “If this is done,” says John Savage, “the rotating machinery can be linked via VPN tunnel into STA-RMS, the Remote Monitoring System, which enables Siemens engineers to monitor the performance of compressors, gas and steam turbines on plants around the world. At present, 190 industrial plants are linked to the system, This is an essential tool for our Total Care concept.” With the help of STA-RMS, the control center can call up any site automatically or on specific occasions, in real-time to examine the operating logs in the plant. Data can be downloaded for analysis and to determine changes in performance, the nature of a possible outage, and whether it is critical to production. Based on this information, proactive maintenance planning can be instigated to keep downtime — and losses — to a minimum. V E N T U R E M A G A Z I N E _ J A N U A R Y 2 0 0 7 _ D A T E L I N E _ 1 9 Dateline 15–19 January 2007 PETROTECH 2007, New Delhi, India http://www.petrotech2007.com 06–08 March 2007 POWER GEN RENEWABLE ENERGY AND FUELS, Las Vegas, USA http://www.power-gengreen.com 16–17 January 2007 OFFSHORE ASIA, Kuala Lumpur, Malaysia http://www.offshoreasiaevent.com 20–22 March 2007 OFFSHORE WEST AFRICA, Abuja, Nigeria http://owa07.events.pennnet.com 22–24 January 2007 POWER GEN MIDDLE EAST, Manama, Bahrain http://www.pgme07.events.pennet.com 24–27 April 2007 LNG15, Barcelona, Spain http:// www.lng15.com 21–23 February 2007 AUSTRALIAN OIL & GAS, Perth, Australia http://www.swanexhibitions.com.au/aust/ 26–29 April 2007 IRAN OIL & GAS SHOW, Tehran, Iran http://www.iranoilshow.com 28 February– 02 March 2007 GENERA 10TH ENERGY AND ENVIRONMENTAL FAIR, Madrid, Spain http://www.ifema.es/ferias/genera/default.html 30 April – 3 May OTC, Houston, TX, USA http://www.otcnet.org www.siemens.com/venture