Before you start working on your FEED proposal and business case, you need to understand the scope and objectives of your project and your client or sponsor's expectations and requirements. This will help you align your FEED approach and deliverables with the project goals and the decision-making criteria of your client or sponsor. You should also conduct a thorough feasibility study and risk assessment to identify and address any technical, financial, or environmental challenges or uncertainties that may affect your project.
A detailed FEED plan is the backbone of your FEED proposal and business case. It outlines the scope, schedule, budget, resources, quality, and deliverables of your FEED phase. It also defines the roles and responsibilities of your FEED team and the communication and reporting protocols with your client or sponsor. A detailed FEED plan can help you demonstrate your competence, credibility, and commitment to your project and your client or sponsor. It can also help you manage your FEED activities and monitor your progress and performance.
As an engineering systems technologist, I have seen many proposals that neglect to detail the systems that will be used to virtually construct detailed 3D plant models (equipment, piping, structures, etc.) and to produce and manage all the associated deliverables (isometric drawings, orthographic drawings, review models, material reports, etc.). Often, little consideration is given to the effort required to ensure development of quality inputs (pipe specs, model standards, level of detail, etc.) and how to best share work on larger projects where multiple partners are involved in design activities.
(part 2) The logistics of work-sharing alone can be expensive and complicated, depending on software, hardware and networking systems chosen, in particular where partners are far apart or located in remote site areas. These systems require continued support for the duration of projects, to ensure successful outcomes. All of these things directly impact quality, schedule and cost. A well written FEED plan will cover these items as they should form the foundation of a project design system and be carried into detailed engineering.
A comprehensive FEED report is the main output of your FEED phase and should provide the technical, economic, and environmental justification for your proposed solution. It should include a project overview that describes the background, objectives, scope, and assumptions of your project; a design basis that defines the technical specifications, standards, codes, and criteria; a conceptual design that presents the layout, configuration, and components; a cost estimate that estimates the capital and operating costs with contingencies and allowances for uncertainties; a schedule that estimates the duration and milestones with the critical path and dependencies; a risk analysis that identifies and evaluates potential risks and opportunities with mitigation and contingency plans; a value engineering analysis of alternatives and trade-offs with optimization and improvement opportunities; and finally, a sustainability assessment evaluating environmental, social, and economic impacts with compliance and mitigation measures.
Market conditions need evaluation e.g., do the competitors have similar plans to build units around the country or nearby regions? What is the cumulative effect of additional production coming on-stream? Is the regulatory frame-work expected to be favorable from the environmental side at least over a time horizon to provide a sufficient return of/on the Capital deployed? What does the qualified labor supply looks like gulf-coast v/s up north and its impact on execution time and safety record? What is the track record of corporations in executing projects on time and on budget with good safety record vs competition to get an early start advantage? What is the expected local population response to new facilities creating jobs vs pollution?
When preparing and presenting your FEED proposal and business case, it is important to communicate your report effectively and persuasively to your client or sponsor. You should tailor your message and tone to the needs, interests, and concerns of your audience, using clear, concise, and consistent language. Visual aids, such as diagrams, charts, graphs, and images, can be used to illustrate your points and data. Additionally, make sure to highlight the benefits of your proposed solution, provide evidence to support your claims, and use storytelling techniques to engage your audience. Finally, practice your presentation skills to convey confidence, enthusiasm, and professionalism.
The business case should include a sensitivity study to fluctuations in commodity prices (for feed-stock) and product pricing.
The last step of preparing and presenting your FEED proposal and business case is to solicit feedback and follow up with your client or sponsor. You should ask for their opinions, comments, and questions and listen to their feedback and concerns. You should also thank them for their time and attention and provide them with any additional information or clarification they may request. You should also follow up with them regularly and keep them updated on the status of your project and any changes or issues that may arise. By soliciting feedback and following up, you can build trust, rapport, and collaboration with your client or sponsor and increase the chances of winning their approval, funding, and support for your project.
It is important to understand that a proper look ahead made during the FEED phase will end up in saving huge costs later. Too many assumptions made during FEED will hit us hard in terms of cost and schedule overruns.
Flare system is probably a make-or-break license-to-operate issue. It is often not sufficiently addressed in the design phase with explicit details on operation and safety considerations such as back-propagation of flame-front