Project Development

Refinery Expansion Economic Study

Performed economic evaluation of a potential major expansion of capacity at a large Gulf Coast refinery, including development of capital costs, operating and maintenance expense estimates and projected range of refining gross margins.

Gas Processing Technology Study

On behalf of international oil & gas producer, conducted gas processing technology screening and economic evaluation study to select optimum NGL recovery process.  Evaluated refrigeration, cryogenic, and propane recovery processes based on regional commodity pricing scenarios, operating costs, and capital costs.  Also evaluated and recommended NGL recovery train optimization based on equipment reliability/availability modeling and capital cost trade-off.

Gas Processing Plant Owner’s Engineer

Conducted independent process design review of gas processing plant design prepared by EPC Contractor to ensure optimum process performance and ability to meet contractual guarantees.  Also prepared process design and cost estimate for a gas-condensate inlet separation and condensate stabilization system that was used by client to verify change order claims being made by EPC Contractor.

Products Terminal Capacity Study

Studied capacity at existing refined product terminals in southeast Texas compared against needs for a major refinery expansion.  Determined the various breakpoints in capacity required to efficiently handle the projected increases in petroleum product volumes from the expanded refinery and identified possible optimization of the existing tankage currently under the control of the refinery owner.

Project Development – Power Plant

Led the development engineering for a 1,200 MW gas-fired combined cycle power plant near Oklahoma City.  Developed complete Engineering, Procurement and Construction (EPC) Scope Book, negotiated EPC contract, managed a ten-mile water pipeline project as well as transmission and two major natural gas interconnections.  Supported efforts for project financing, special use zoning approval, and air and water permits.

Olefins and Natural Gasoline Pipelines Development

Led study and negotiations to secure high pressure gas and liquids pipeline capacity for a new ethylene plant to transport ethylene, propylene and natural gasoline.  Explored joint ventures, service conversions, owner construction, and third party alternatives.  Involved in developing design parameters, routing, and common carrier tariff structure.  Executed contracts to construct and utilize three parallel 12-inch diameter pipelines along the Gulf Coast.

Synergies Between Refineries and Ethylene Plants

Assessed and identified economic synergies between refining and ethylene and chemical plants.  Team identified over $50 million in annual benefits by integrating a refinery and a liquids based ethylene plant.

Ethylene Plant Economic Evaluation

Performed financial evaluations for construction of a new Gulf Coast ethylene plant and market valuation of an existing Gulf Coast ethylene plant to determine whether a company should build or buy ethylene capacity.

Pipeline Construction

Managed project for $80 million 36-inch pipeline looping project in Southeast Michigan.  Responsible for regulatory testimony, scope of work development, selecting and managing engineering-procurement-construction management firm (EPCM), and capital budget and construction schedule preparation.

California Refinery CARB II Gasoline Investment Evaluation

Assessed the technical feasibility of a planned CARB II gasoline production project for a southern California refiner.  The evaluation included the processing scheme, yields, technical merits, and economics.

Gas Storage Project

Managed project for a $50 million natural gas storage project with responsibility for development of a 12,000 horsepower (hp) compressor station and wellhead gathering system.  Performed engineering for pipeline gathering system and compressor station; developed EPC scope of work; and managed EPCM firm for detailed engineering phase.

NGL Processing Plant

Developed and managed investment in a grassroots NGL processing plant in the Gulf Coast area.  Prepared economic analyses; negotiated partnership and operating agreements; developed engineering scope of work and request for proposals; negotiated EPC contract; and formulated gas processing strategy and contracts for Gulf of Mexico producers.

Watson Millican & Company consultants have considerable experience in all aspects of project development including scope of work development, technology evaluation and selection, feed and product studies, economic evaluations, contract negotiations, scheduling, and project management activities.

Our consultants have direct project experience with refineries, petrochemical plants, gas and liquid pipelines, natural gas processing and underground storage, and power generation facilities.

Our firm has utilized this project experience to assist owner/operators and project developers in evaluating project feasibility, scope definition and optimization, construction, plant start-up and testing, as well as facility expansions or modernizations.