Trans Alaska Pipeline System

Submitted By AnkurBahri
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Trans Alaska Pipeline System (TAPS) Strategic Reconfiguration Project

Project Management – Homework 1

Team 15
Ankur Bahri
Imran Bashi
Himanshu Soni
Chintan Sureshkumar Kotak
Mamadou Djerma
Project Overview Statement
1 Problem/Opportunity
After 25 years of operation, TAPS throughput has declined from 2million b/d (barrels per day) to 1million b/d, declining more than 5 percent per year and underutilizing the full pipeline capacity. Less oil flowing in the pipeline means low liquidity and colder oil, which poses challenges.
2 Goal & Objective
To extend the economic life of the pipeline through increased efficiency, while maintaining the highest integrity and environmental standards. The objectives are
Replace gas turbines with modern electrical pumps at critical pump stations – 1, 3, 4 and 9.
Increase automation at pump stations.
Install the central pipeline control center in Anchorage.
Establish communications between the pumps and the Anchorage control center.
3 Success Criteria
Pump stations for pipeline operations can run at a minimum throughput of 200,000 b/d.
The total project cost is $250 million.
The project is completed by 2005.
75 buildings or more will be placed in non-operational status.
4 Assumptions/Risks
Environmental factors such as harsh Alaskan conditions will have minimal affect the project.
External factors such as political and social will not hamper the operations.
Human resources, technology and equipment of the highest quality will be readily available.
5 Feasibility analysis
Technical:

To analyze the technical feasibility we will focus on “Can it be done?” in order to do this we need to study factors such as technology, physical location, transportation and shipping, labor and materials. While some of the factors are studied individually, effects of some are studied in integration. In our entire study, we consider the weather conditions in Alaska as being the biggest barrier to implementation.
The technology and automation required for reconfiguration from old turbine to electric motors is available. In addition, the team has technological expertise of more than 25 years. However, even after a budget of $250 million incomplete detailed engineering and no quotations from equipment manufacturers as they have not been contracted puts the technical feasibility in question. The equipment might also cost higher than the expected budget. Moreover, being a one of a kind project the technical feasibility is difficult to determine considering the harsh conditions of Alaska where the best of the equipment could fail easily. Hence, testing of the equipment before installation is necessary.
To improve the efficiency, increase automation and reduce costs, the project proposes to install latest computer technology available, which wouldn’t have been possible 10 years ago, as quoted by Ian Levitt “We couldn’t have done this 10 years ago because the VFDs that we need didn’t exist.” Again, we need to consider the environment in which the technology will be used. An analysis of the existing infrastructure and facilities is also imperative before the new systems are installed to ensure smooth functioning.
With regards to the physical location, the project focuses on the current pump locations, which have been in operation since the beginning of TAPS; pumps 1, 3, 4 and 9 have been strategically selected as their location would ensure in smooth flow of oil to the terminal in Valdez while passing through harsh climate, mountain ranges and rivers. Feasibility of location is given and empirical.
The construction of new platforms (involving factors such as labor, materials and transportation) for the installation of modular equipment is feasible, considering the magnitude of the original project being successfully completed 30 years ago, a huge credential and a proof of the expertise. Also, during this time construction procedure have evolved for good and have become advanced therefore becoming more feasible, safe and