Management system for enhancing chances to take inherently safer design options in LNG plant projects

Abstract

Recent LNG facilities projects have grown in size and complexity (e.g., larger capacities, remote sites and modularized construction), thus requiring larger investments. This trend has not only increased the investment costs but also added further difficulties to project management during the design phase (e.g., large, joint venture organizations for both, Owner and Contractor, that combine partners with different company cultures, personnel hired specifically for the project, complicated contract formations and splits of work, and extensive and complex government permitting and approval requirements). In addition, the project schedule is also usually very tight in order to start up the facilities sooner.Recent projects apply a risk-based approach in defining and ensuring a safe design, rather than using the traditional deterministic approach. This formalized process (accountability, identification and demonstration for hazard and risk) has started since the Seveso Disaster, and has provided a new regulatory framework for the work place health and safety in Great Britain and Europe as the Safety Case Regulation following the Piper Alpha incident. However, due to the increasing project complexity, a risk-based approach and decisions based on a probabilistic cost-benefit analysis becomes inherently difficult. They require obtaining a firm output from various analyses and studies, which in turn, require firm design data that is only available at the latter stages of the design phase. Delays in HSE input to design may result in major schedule delays in project execution. The application of the risk-based approach has been the first step toward improving process safety, the next step, which is discussed in this paper, is to establish the Management System in order to effectively implement the risk-based approach in the current complex project environment and execution.Typical problems observed in such complex projects are differences in problem statements and optimal outcomes when there are multiple stakeholders, different philosophies, insufficient coordination and inefficient design change control, all leading to inconsistencies in HSE design.The HSE management system (HSE MS) typically focuses on site occupational HSE. However, due to the increased difficulties in engineering execution and project management in recent projects, detailed planning of how to handle Technical HSE aspects in engineering is becoming more and more important, and therefore, the traditional application of the HSE MS for occupational safety and for preparing HSE procedures and organizing and managing HSE studies (e.g., HAZID, HAZOP and SIL) do not suffice. Detailed consideration of how to handle and manage the Technical HSE aspects in engineering is critical for its successful implementation.This paper discusses a framework for the effective management of HSE MS in the design phase, and it provides some key considerations (e.g., philosophy of safety in engineering, project environment evaluation method, HSE organization and the recommended scheme for improving motivation for safety).