Getting Ahead of the Curve : Front End Loading HSSE Management Planning in Major Capital Projects

Abstract

Abstract Recent data shows confirmed underperformance in HSSE outcomes in major capital LNG projects, with supply chain HSSE culture being a key risk to large capital project developments. The evidence indicates that starting HSSE related activities and effort in line with construction results in poor HSSE performance characterized by an operating mode of reaction and recovery. However, a proactive approach in working with EPC contractor bidders to ‘front end load’ work on HSSE strategies and plans, and so gaining alignment and contractual agreement up front well before construction work begins, will pay dividends. This paper discusses why sending the workforce home safely at the end of every day should not be seen as a competitive advantage by a mature organization. Lessons can and should be shared from major capital projects certainly within an organization but also within the LNG industry more widely. Anonymous examples are presented covering the safety outcomes of projects that started robust front end HSSE management systems, practices and initiatives too late (in line with the construction phase start, for example) and of the intervention plans that were then required to recover to acceptable levels of HSSE performance. Specific lessons learnt from past and current LNG projects will be discussed. This experience and knowledge has helped formulate the HSSE Management strategy and plans for the Lake Charles Liquefaction (LCLNG) Project, known as "Getting Ahead of the Curve". The HSSE front end loading work described in this paper, which is aligned to the LCLNG Project’s overall Performance Management Philosophy, includes but will not be limited to the following: Requirement for strong Project Management Team leadership and an in-depth understanding of the workforce culture on the US Gulf CoastAgreeing training requirements and timing (well up front, before workers arrive at the point of risk)Agreeing minimum HSSE and overall supervision ratiosAgreeing KPIs for HSSE management as part of the overall Project performance management plan, including occupational safety and process safetyEnsuring HSSE plans are project specific and not the typical ‘boiler plate’ corporate materialGetting all requirements agreed with the EPC bidders and embedded into the signed off contract, and so being ‘up front and baked in’Following up with robust EPC bid evaluations, focusing on HSSE management planningGantt chart illustration submission requirement with risk profile changing as the Project moves from construction to introduction of hydrocarbons and onto commissioning and start-up, thus enabling successful HSSE campaigns ahead of key risk activitiesSetting up of the Gulf Coast LNG Safety Leadership Forum with other LNG development proponents The HSSE management goals of the LCLNG Project will be discussed. It is the intention that actual performance can be reported in subsequent updates as the Project progresses, so that further lessons learnt can be discussed and shared with the SPE HSSE Management community.