Honeywell Process Solutions’ VP Strategic Geographies, Chris Dartnell, was in South Africa recently. SA Instrumentation and Control was invited to meet with him and GM Sub-Saharan Africa, Sean Smith, we asked them about the company’s strategic focus in the region and its partnership approach to business development.
Chris Dartnell is responsible for the growth market business of Honeywell Process Solutions (HPS) which includes, amongst others, the markets of China, India, Brazil and Africa. “HPS is the industrial solutions channel of Honeywell,” he explains during his introduction to the organisation’s overall structure. “It is a $3 billion global business and in the context of that, Africa is of particular interest to us as it represents the last growth continent. As a total automation solution provider, our approach is typically to identify the larger projects and focus on the end users looking for a complete solution supported over the entire lifecycle of a facility. Locally, our partnership with Sasol is a good example of the approach. Sasol want to be a premium operator in the petrochemical industry and we want to partner them to enable that. Typically we are looking to build 20-year relationships with our customers, rather than those that only last the duration of a particular project.”
Sean Smith adds that oil and gas is a key industry for Honeywell globally. The carbon supply chain is seen as a core business for the company which has a strong reputation for developing successful partnerships with key customers at all the value addition stages.
“Our strength lies in continuous processes,” continues Dartnell. “We do not choose to be in discrete manufacturing and this is why our solutions are ideal for the oil and gas industry. A good example is the Shell gas-to-liquid plant that we recently completed in Qatar. It is a $30 billion project and our largest process control system to date.”
Internationally Honeywell has a very large position in oil and gas and the value that it can bring to an industry partnership is well understood. “Now we want to expand our presence in Africa by taking our oil and gas measurement technology and incorporating it into total terminal automation solutions tailored to specific regional requirements, whether they are for Chevron in Angola or Shell in Nigeria,” explains Dartnell. “The nature and demographics of the African oil and gas industries leans towards integrated end-to-end solutions, rather than the supply of discrete products the way it would be in many of the more developed regions. This is right in our sweet spot, the strength that we intend to bring to market is the way we can leverage our terminal automation platform with technology from other Honeywell business units. Access control would be a good example of a system we could deploy to enhance an HPS automation solution, CCTV is another.”
What is unique is the way Honeywell is able to pull together the traditional measurement of what is flowing in a terminal and incorporate other aspects like safety, connectivity to the outside world and even perimeter security if required. “Wherever carbon changes custody or state there is an entry point to the value chain,” says Smith. “Operators want to be able to measure what it is they are actually producing from each barrel of oil that comes out of the ground. For instance how much petrol, diesel and all the other constituents? Then of course it must be distributed and we have the technology to measure this as well. When we look at terminals in Africa, Honeywell can now supply everything to support terminal operations from logistics through refining to storage, security and even access control. This is what differentiates us.”
Comprehensive solution to help maintain safe, efficient fuel supply in Kenya
A good example of the power of the Honeywell approach is the $2,4M project to deliver a full automation solution for Petrocity’s Greenfield Konza terminal storage facility 60 km southeast of Nairobi. The project includes comprehensive solutions for the pipeline receipt system, tank farm, truck loading system and terminal automation, all achieved through Experion Process Knowledge System (PKS) and Terminal Manager. It also includes all industrial security, emergency shutdown (ESD) and fire and gas (F&G) systems.
The new terminal facility is situated on the Nairobi-Mombasa highway and will cater for Nairobi's growing demand for fuel, which accounts for more than 50% of the country's oil consumption. It will have the capacity to handle 120 million litres of gasoline, diesel and kerosene, enough stock to fuel Nairobi for up to two months, with infrastructure for product receipt, storage and distribution. Equipped with high-accuracy measurement instruments and approved for custody transfer applications, the Petrocity project will also increase availability of petroleum products to independent dealers in Kenya who currently have limited access to truck loading facilities.
“Honeywell’s solution offers end-to-end integration to give a global overview of the entire facility and ensure best practice in safety,” says Smith.
“Once completed, it will be among the most technologically advanced storage terminals in Africa.”
“Projections of long-term economic growth in Kenya continue to fuel a steady increase in demand for petroleum products throughout the country, but particularly in Nairobi,” adds Dartnell. “The new Konza storage facility will play a significant role in the development of the petroleum industry in this area and the Honeywell technology at the heart of it will ensure safe, reliable and efficient operations for many years to come.”
The scope of the project includes automated procedures for product receipt, stock allocation, accounting and dispatch; field solutions for accurate measurement to ensure safe and reliable stock tracking throughout the terminal; and CCTV integrated into both the building management and process control systems for improved process visibility. The platform will also provide online access for the terminal’s customers, enabling them to access details and track their product through Web visualisation and thin client applications. As an independent terminal operator, Petrocity will be able to service fuel traders throughout Kenya and into neighbouring Uganda.
“HPS will deliver all services associated with the project from the initial Hazard and Operability (HAZOP) study, through detailed engineering to onsite commissioning and support services via a resident engineer,” explains Smith. “This is what we mean when we talk of total terminal engineering.”
Dartnell and Smith present compelling arguments for Honeywell’s end-to-end terminal automation solutions for Africa. Both agree that strategically the key is to target the two developing clusters of East and West Africa.
“We hear of plans for new refineries in Africa almost every week, but very few of them ever get built. If you do not target the approach you can end up chasing your tail all over the continent,” Smith explains the logic.
The fast growing demand for fuel in the two developing economic clusters is driving the demand for automation platforms that keep pace. “In summary,” Dartnell says, “the strategy is to build our existing international partnerships to recognise the evolving requirements of Africa’s oil and gas industries. Then we will employ the synergies that exist across our company businesses to bring to market relevantly engineered Honeywell terminal automation systems and services that fit those needs exactly.”
SA Instrumentation and Control thanks Chris Dartnell and Sean Smith for their time and insight into Honeywell’s business strategy in Africa’s oil and gas industries.
For more information contact Boni Magudulela, Honeywell Southern Africa, +27 (0)11 695 8000, [email protected], www.honeywell.co.za
© Technews Publishing (Pty) Ltd | All Rights Reserved
printer friendly version