An evolution of heat exchanger technology
Huzaifa A.J., chief technical officer of Dolphin Oilfield Equipment Services, talks to The Energy Year about the dynamics of the heat exchanger business in the UAE and the technical and technological added values the company brings to this business. Dolphin Oilfield Equipment Services provides engineering solutions to the oil and gas sector.
How has the heat exchanger business in the UAE evolved and how has Dolphin grown with it?
Heat exchangers have a long history; they’re as old as the burning of hydrocarbons as a power source. However, the heat exchanger scene in the UAE and globally has changed over the years. Today, they are used in every industrial process, from hydrocarbon processing to the processing of food and medication.
Prior to 1986, most heat exchangers were imported. With this as a backdrop, Dolphin first started as a radiator repair shop as it was our founders’ father’s business since the 1960s. Radiators are a type of heat exchanger, and we adapted rapidly to expand laterally (along product types) and vertically (along the supply chain). We embraced the heat exchanger business and gradually, clients gave us more responsibility, including their design and engineering.
We have evolved with the requirements of our clients, evaluating, incorporating and delivering the latest technological developments to maximise the utility of our equipment for the client. We have adapted to local needs and actual process conditions, which often are not in line with the original “design conditions” stipulated by the OEMs; this has been enabled by investing heavily in R&D.
Our focus now is developing instead of adapting the latest technologies, such as 3D printing of components, generation of geometries through simulations, incorporating AI machine learning and neural networks for identifying production bottlenecks and predictive maintenance, increasing the degree of automation used in manufacturing, maintenance and inspection, connecting most machinery with IOT capability so the project progress is reported in real time and finally integration of feedback loops within all execution processes to allow for on-the-job efficiency gains.
What key activities have you recently carried out in the UAE’s oil and gas sector?
The UAE is well positioned to ramp up oil production and this will require more of our services. ADNOC is responsible for the overall performance of their plants, but we have suggested a reshaping of this practice and we offer them a unique alternative to offload all of their heat exchanger issues onto us. Most of our technologies were first implemented with ADNOC, and subsequently spread across the region thanks to the important ties and track record we had with the NOC.
We see plenty of potential in the gas landscape as well. We already have an important presence in this area, having worked for companies such as ADNOC LNG and ADNOC Gas Processing (now combined as Adnoc Gas), for whom we carried out a USD 2-million project to upgrade their chiller cooling system, which would have otherwise required USD 20 million.
The debottlenecking and refurbishment of existing and ageing systems and facilities is a very important activity. Obviously, new plants will have to be built but re-working on existing facilities is essential for the functioning of our industry. For instance, we recently carried out a contract for a refinery. We supported them in the decommissioning phase of an existing refinery, re-engineered their exchangers and used them to enhance the capacity of another refinery unit, all within four months. In this timeframe, we worked on 20 heat exchangers in a customised way. It would be impossible to set up a new facility in that short a period.
In what ways has your involvement in Borouge exemplified localisation?
Borouge has the second-largest plate heat exchangers in the world. Due to the lockdown during the pandemic, their OEM agency found it difficult to cater services to this project. As borders closed, we got our first trial unit as a locally based company. It was a win-win situation; for us due to the amount of work we had and for them as they did not have to halt operations.
It is the largest project we have taken on, valued at USD 2 million per year. We completed one year out of the five-year contract. In the first few months we managed to do around 20 plate exchangers, with an average value of around USD 50,000-60,000 each.
This also exemplifies localisation. During Covid, we had problems we did not have solutions to, plus the client did not have options either. Dynamics have shifted and we have now become a respected local partner, a solution provider offering them quality solutions, here and now. We can do exactly the same job or even better than many international OEMs. Our engagement with Borouge was a testament to this and thanks to projects like these we have managed to grow exponentially over the last couple of years.
What technical and technological added values do you bring to the heat exchanger business?
Different facilities require different types of heat exchangers as there are various elements one must consider. We understand the business from inside – we know whether a heat exchanger was built 20-30 years ago and what specifications it follows. Many of these were built in the cheapest way possible and with the focus on warranty lifetimes (one to two years), and not the operability and maintainability over its design life (25 years), which is crucial for exchanger lifecycle opex minimisation.
Our experience and technical know-how can determine upon first inspection the faults of the heat exchanger and we have the competency to provide effective, safe, long-lasting solutions. You see, heat exchangers normally experience a limited category of problems: its either a maintenance issue where due to lack of upkeep the exchanger has deteriorated (mechanically), or actual fouling is a lot worse that the design conditions, or it’s a design issue where the pressure drop is too high, or the heat duty is insufficient. We deploy our technical expertise to help solve those issues. Usually, it is a combination of all the above.
Our philosophy revolves around being a one-stop-shop company, able to offer A-Z solutions. There’s a certain standard of quality and convenience we want to offer. In addition, we have bought certain in situ machinery in order for us not to rely on third-party companies that don’t offer the same levels of quality we do. Further to this, whatever a client needs, we will have a solution ready for them in 12 hours. If a client has a job that is due in one month, we will try to have it done in one shift. The key to success is in the mindset. We understand how important time is and we value reputation.
When it comes to technology, we are a member of HTRI [Heat Transfer Research Inc.] in the US and other boards. This has given us access to some of the best tools and intelligence in the heat exchange business worldwide. We have automated our business, which has helped us reduce our failure rate. For instance, if one does an expansion or welding, one will have a failure rate of at least 1%. We have a failure rate of 0%. On this note, we recently finished a project involving 2,000 tubes, and none leaked. All these points allow us to stand apart. Today, we are leaders in the heat exchanger business.
For example, depending on the process, every three to five years one must clean a heat exchanger. These timeframes are usually ordinated based on “best practices” or “industry standards.” These timeframes are indiscriminately applied to all equipment, and as a result process plants spend more time and money on turnarounds than required.
Hence, we responded by installing specific instrumentation connected to AI technology. From here, a computer tells us, based on its engine and historical data, which heat exchanger needs cleaning, maintenance or upgrades. Furthermore, based on the fouling factor of the exchanger, we can predict when this exchanger will reach its minimum acceptable efficiency and plan for its maintenance. We call this preventive maintenance, a key approach for enhancing efficiencies.
Although the core fundamentals of thermodynamics are the same, the heat exchanging business is becoming more efficient and sophisticated over time. They are also being made from different materials such as titanium, and they will soon be produced with 3D printing. Today, we still make exchangers the same way we used to, except that we are now automating the process. By 2024, we expect to reach a zero-manual process, and further along the line 3D printing will come into play.
What capabilities do you have in terms of work volume, clientele and expansion?
We normally limit ourselves in contract value and customer engagement because we don’t want to face a situation where one end user represents more than 15% of our revenue, and a contract exceeding 10%. We tend to diversify our streams of income. If one of your customers contributes 30-35% of your revenue, you will start prioritising their systems, and to an extent you are highly dependent on them. Our largest recent project has been the one for Borouge, under a five-year contract. We typically go for multi-year contracts, covering everything in the client’s plant. When considering the ROI, usually the first year is cash negative due to the amount invested to carry out the project.
Our other larger clients include ADNOC Offshore and ADNOC Gas, in addition to all the OQ entities as we deal with heat exchangers in their plants. Due to the volume of work, we sometimes have around 400-500 workers just for our services, present in three countries: the UAE, Oman and Qatar. In Qatar, there is a huge potential for us to expand our footprint and we are even considering entering Saudi Arabia. In order to do this, a partnership could be an interesting option as we believe the Saudi market could greatly benefit from our services.
What do you see as the keys to Dolphin’s future success?
Firstly, we want to keep a focus on client requirements. We have a very competent and established clientele base who value our work. Secondly, we need to maintain a balance between our operations and our drive to invest more in R&D. Regardless of financial performance or competition we focus on the obsessive pursuit of improvement, which drives our need for innovation. Lastly, we are committed to health and safety, and more so in these troubled times.
Future profitability comes from within, and valuing, retaining, and engaging our human talent is essential. This, along with operational experience and a strong bet on R&D, will help us thrive in years to come.
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