Refinery-utility collaboration to increase value

Severe pressures to reduce costs, improve reliability, and generate higher shareholder value have helped to promote a successful change in the relationship between a major Canadian petroleum refinery and a large electrical utility. The relationship has evolved from a traditional customer/supplier relationship to a new business approach based on collaboration. New ideas have created win-win situations for both organizations. The new business approach has produced improvements in electrical power supply reliability, better equipment reliability, reductions in operating and maintenance costs through maintenance effectiveness and improved safety, and sharing of technical expertise and data. In addition, this new business approach has led to fresh ideas in business practices, maintenance practices, energy efficiency, electrical power monitoring, application of advanced relaying technology, and the setting of performance targets. This article describes the specific application of new technical and business ideas that have been implemented and the significant benefits that have been captured. To date, over $500,000 in annual benefits have been created. The article goes on to outline future possibilities, which could double the annual benefits