Project 1 / 20,000 (Currently in progress)

JGC, with a track record of over 20,000 successful projects in 80 countries.
Let’s look at an example of how JGC actually carries out a project, from contract to completion.

JGC completes projects faster than its clients expect.
A large-scale oil refinery plant construction project that showed the world what JGC can really do.

Prologue

An industrial complex located 150 km in the southeast of Country A. This emerging industrial area on the coast symbolized the economic potential of this developing country. The rapid development of Country A had been proven by a year-on-year increase of 12.3% in economic growth rate. A nation of hard workers with a passion for modernization. National demand for oil products such as gasoline and diesel fuel grew dramatically as industrialization and motorization progressed. On the other hand, the delay in developing infrastructure was causing an imbalance in supply and demand, and there were rumors about major shortages of oil products. In the midst of all this, the construction of a large-scale oil refinery plant in a corner of the industrial complex was proposed. The construction of a large-scale oil refinery plant was to be a joint venture between a major oil company and a state-owned petroleum corporation, and the aim was to drastically raise the self-sufficiency ratio for oil products within the country. During this time, the major oil company was actively expanding into new markets, and Country A was selected as the next base for its Asian strategy. Meanwhile in Country A, multiple construction plans for oil refinery plants were on the table, and the major oil company was under pressure to come up with a concrete plan quickly, or risk falling behind. The project was created. The target was to produce 130,000 barrels per day from a 250-hectare site. Now the plans were public, what the plant industry wanted to know was which engineering company was going to be contracted to carry out construction.

Behind-the-scenes activity to beat the competition.

At JGC, work began on the campaign to win the contract for the project. Back then, no other project had been as large as this one, and several other tough competitors were in the running, including a Japanese engineering company, an American affiliated engineering company and a Korean company. The major oil company had been a client of JGC's for over 30 years. JGC really wanted to win the contract. In order for that to happen, all its know-how had to be brought to bear to create a proposal with a schedule and cost that would impress the client and set JGC apart from the competition. The entire company worked toward winning the contract, and behind the scenes, the process of deciding what to put into the proposal involved round after round of meetings and technical investigations.

Exceeding the client's expectations with an ultra-short delivery time. And so, JGC won the contract.

When the tender documents were analyzed, it became clear that the major oil company expected construction to take between 33 and 36 months. The entire project had been divided into two parts, FEED creation and design / procurement / construction, with each part contracted separately. The FEED part had already been completed by another engineering company. It then fell to the company that won the contract for the rest of the project to come up with a basic design for the plant which would meet the FEED specifications. After that detailed designs of the buildings, piping, electrics, equipment, control systems and all the other facilities within the oil refinery plant would have to be prepared, and all the necessary equipment and construction materials would have to be ordered from vendors. The last stage would be the construction work itself. Furthermore, there would be other work to be done, such as submitting application forms to the government offices in Country A, and securing financing. After checking and re-checking the contract details and the basic plan for the project, JGC finally reached a conclusion. "For JGC, this is an extremely orthodox oil refinery plant construction project, and there is nothing here that we haven't seen before. Just by making some arrangements, it therefore be possible to make a substantial reduction to the project period. So, in our proposal let's say 29 months, from design to completion." On September 20, XX04, JGC won the contract for the project. Just 29 months, from start to finish. This ultra-short delivery schedule far exceeded the client's expectations, and was moreover backed up by a thorough plan of execution, an organizational structure and a whole host of other content which made it achievable. Out of all the project proposals it received, the client therefore JGC's rated Number One. The official contract signing was held at the headquarters of the major oil company, and a ceremony for commencing the project was held by the joint venture company from Country A. And so the project was finally launched. The key concept? "Completion in 29 months."

Design work that can be done in parallel. The journey towards realization of a quick delivery commenced.

The 29-month deadline for project completion, as promised to the client, is March 3, XX07. With no time to savor the victory of winning the bid, a large, dedicated team is assembled for the project at the JGC Yokohama Office. Engineers, mainly those responsible for process design, are in charge of creating the basic design. The engineers develop the basic design of the overall oil refinery plant based on the basic data indicated in the FEED. The main components of the oil refinery plant will be distillation towers such as crude distillation units (CDU) and vacuum distillation units (VDU). They will be more than 60 meters tall. These distillation towers break down crude oil into oil products such as gasoline, naphtha and diesel oil. There will also be a forest of other equipment, like the residue fluid catalytic cracker (RFCC), which converts residue oil into gasoline. And the piping connecting it all together. And massive air-fin coolers to cool the high temperature oil. This dense area, where all the main equipment will be located, is called on-site, and will be at the center of the plant. Surrounding on-site will be tanks for crude oil transported in by tankers, and tanks for storing newly-made oil products. These storage facilities, together with auxiliary facilities for electricity and water supply are called off-site. On-site and off-site will be connected by piping, and all equipment and piping will be encased in a network of cables and instrumentation. The process design department examines every part of the huge and complex facility, which is very much like a living organism, and fine-tunes the basic design to fit all the chemical reaction processes. Many contradicting data are found in the FEED as design work progresses. The review work takes a considerable amount of time. Problems are solved and the main designs, called P&ID, are completed one by one. In the light the need to complete the project in a short delivery time of 29 months, equipment and materials, which can take a long time to be delivered, will have to be ordered from vendors before the design work is sufficiently completed. This implies that JGC will face the risk of receiving equipment that differs from the final drawings. Taking such risks into full consideration, close adjustments are made in cooperation with the relevant sections. The CDUs and VDUs are ordered in a remarkably short time of just 2 months after the start of process design. By November, the number of completed P&IDs exceeds 1,000. This is exceptionally fast.

A landscape that changes from day to day. In an empty landscape where there was nothing before, the foundation for the plant begins to take shape.

Construction work begins on the site. The JGC construction manager arrives in May, and construction on the site gradually gets into full swing, starting with the foundation work for the off-site tanks. Foundations for the roads and sewage and drainage facilities are the first things to appear in the empty landscape. The on-site construction office is built, and the place starts to look more and more like a construction site. However, much of the work in the initial stages involves civil engineering work which has to be more or less completely suspended whenever it rains. The drainage system has to be installed at fever pitch done in order to be ready before the rainy season arrives in full force. In Yokohama, engineers are at peak output as they work on the detailed design of the civil engineering work. Drawings of the concrete foundations are sent to the construction site one after another. However, back in Country A the rainy season comes in mid May, and construction does not proceed as planned. In June, it rains on the site for eighteen days out of thirty. And even that's better than the previous month. The temporary power generator goes into operation. In July, the civil engineering work is carried out at fever pitch, making the most of a break in the rain. To make up for lost time, tens of thousands of cubic meters of concrete are set on the site in August. These are record-breaking amounts for a single month. In the same month, the pile driver barge for construction of the landing bridge breaks down, with major repercussions for the entire project. Another barge is hastily arranged and the problem is overcome. In October, the first large shipment of cargo arrives at the site. Principal pieces of equipment, such as the CDU and de-ethanizer towers, are brought to the construction site. From this month on, construction work increases to encompass building facilities such as a reservoir, pipe rack and substation, and processes like painting storage tanks. With multiple construction work being carried out at the same time in the same areas, construction schedules and procedures must be readjusted to ensure efficiency and safety. There are around 7,000 workers on the construction site. With the deadline approaching, work gets tougher and tougher. In December, with the rainy season over the second batch of heavy cargo arrives, and includes the VDU towers, the RFCC main columns, and platformers. The construction site is by now very busy indeed.

A natural disaster straight out of the blue as detailed design work reaches its peak.

Detailed design work for the piping, electrics, and instrumentation is reaching its peak at the Yokohama Office. The construction site is also catching up on its work at a good speed, and is progressing relatively well despite some minor troubles. Installation of the main equipment is almost complete and the place is looking a bit more like an oil refinery plant. Then, a natural disaster strikes. Piping materials cannot be unloaded at the planned port. Although an alternative port is hastily arranged, some of the piping materials have to be reordered, which will mean a 2-month delay. At the Yokohama Office, activity to create the drawings for the piping work is also at a peak. Things at the construction site's pipe welding processing facility start to get tight with the vast amount of construction drawings which start to flow in, and the facility is expanded. A system for full-scale execution of piping work is organized at fever pitch. This month, the number of workers exceeds 8,500.

 More than 10,000 workers. The plant begins to shine in all its glory.

Work on piping, which had been delayed, gets into full swing. From this point on, construction work is past the halfway mark. Work on the electrics and instrumentation has been progressing just fine, and there is nothing to worry about. Manpower is shifted over to piping, and the next few months see hard days of catching up. On-site the towers now rise high, surrounded by all the tanks off-site. Layer upon layer of piping crawls in between. Every day new piping is installed, and the plant that had been just a collection of 2D P&IDs has almost assumed its complete form as a gigantic 3D structure. Surfaces of brand-new stainless steel and fresh paint gleam beneath the strong sun of Country A. And in the midst of all the hard work, smiles begin to appear on the faces of the construction staff as they can at last say, "This is what it has all been for!" July sees the arrival of equipment which has been delayed, such as the air-fin coolers and the high-pressure heat exchanger. August sees work on the electrics and instrumentation reach their peak and a total of over 10,000 workers on the site. This is the largest number of people for the entire project period.

Bringing the plant to life, and handing it over to the client.

Now the plant must be prepared for hand-over. Hand-over means delivering the completed system to the client. However, with an oil refinery plant consisting of many huge, complex pieces of equipment, it is not simply a case of saying, "Okay, it's finished. Here you are." In this project, all facilities on the oil refinery plant are divided by function into 605 systems. A method is adopted whereby all necessary checks and inspections of the completed systems are carried out, one by one, in the presence of both JGC personnel and the client. Some systems, like the RFCC, cooling water system, Unit 1 boiler and vapor efflux system, are large. Some are simple, consisting of just one pipe. Large or small, each has its own function within the whole. Some systems are so intricately connected with others that they can only be tested after the hand-over of other systems. In other cases, a delay in one system can affect more than 10 others. For staff on the construction site, the priority goal up to this point has been to increase the construction progress rate, but from this point on, the most important thing is to execute an effective hand-over and meet the delivery deadline of 29 months. Hand-over goes as planned, and approximately a hundred systems have been completed by the end of the year. After New Year's and with the 29th month looming ever closer, staff put an extra effort into the last stages of the project. February comes and the project enters its final phase. A considerable amount of time and money has to be spent on the improvement of a system that failed to pass its final checks. JGC will have to pay a delay penalty if mechanical completion (hand-over of all systems) is not done on March 3rd, the day the 29-month deadline is up. If the oil refinery plant is completed, it will have the capacity to refine several million barrels of crude oil per day. Several million barrels of oil products will be worth hundreds of millions of yen. A delay in mechanical completion will mean a delay in the start of production, and therefore, a large loss for the client. So, JGC will be obliged to pay a penalty for each day of any delay. March 3rd is now looming large. All staff are putting their all into completing the remaining 0.1% or less of the project. The goal is in sight.

Completion. JGC achieves the industry's first ever project to be completed with a record of zero accidents and zero damage.

Hand-over of all systems is completed. The promise of 29 months to mechanical completion made in the proposal is kept. Not only that, but the project has been completed with zero accidents and zero damage, an industry first. And so, the project is finished.

Epilogue

Contributing to the development of oil-producing nations, completing clients' plants, and keeping the environment firmly in mind.
And all to make the world a better place. That is the social mission of an engineering company.

The success of this project has brought great benefits to both Country A and to JGC. Operation of the oil refinery plant has eased the imbalance of supply and demand for gasoline and diesel fuels, and is making large contribution to economic revitalization in Country A. Regarding the environment, apparatus used in the plant like the deep desulfurizer meet even the world's strictest environmental standards, and will help tackle the air pollution that has recently become a serious problem in Country A. Hiring 10,000 local workers during the peak of construction brought large economic benefits to Country A. Local staff who have learned management techniques from their time on the project will be able to make use of this know-how to lead Country A to further development. Moreover, the production of much of the equipment for this project was carried out by local manufacturers, to whom JGC provided large amounts of technical support. In this sense, a true technological transfer was possible as a result of the project. JGC is very happy with the success this project has become, and proud to have achieved an ultra-quick delivery time of just 29 months. This remarkable accomplishment was possible because JGC was able to put its accumulated know-how to the test, take up the challenge using the latest technology, and draw on the ability and passion of all the staff involved in the project. Never stand still and always aim higher. That is the role an engineering company must play in society.