Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
MBA Executive Research Project
Asia Petroleum Limited is an oil handling & transportation company with its terminal based near Port Qasim Karachi. The main operation of the facility is the pumping of furnace oil through an underground pipeline from Port Qasim to HUBCO power plant. Currently, the facility is provided with grid supply from K-Electric to operate its installed heavy electrical loads including pumps, boilers, air conditioning & lighting. As a result, plant operational & maintenance bears heavy OPEX budgets in terms of electrical consumption, which is increasing with the rising electricity costs in the country.
Costs optimization is of paramount significance & importance all over the world in the current era for achieving competitive advantages over rivals. In the field of electrical system, research on various new technologies and alternate energies have been done & successfully implemented in the industries all over the world resulted in cost optimizations, savings & durability.
A detailed study & research is carried out for Asia Petroleum Ltd. to identify the areas for improvements in terms of electrical systems modifications, replacement of conventional systems & equipment with new energy efficient and savings technologies, alternate energy sources including solar power systems. For this purpose initially, system studies of the plant were carried out with data collections and technical specifications where use of new technologies or systems modification can be achieved. Secondly, market surveys & due diligence with experts were done to get the knowledge and technical aspects of available technologies and equipment feasible.
Finally, case studies have been developed with technical & financial feasibilities including system designs, technical requirements, data sheets, financials & profits. The four major case studies carried out in the areas of solar power project, energy efficient lighting & air conditioning systems and variable motor drives:
For ground mounted solar PV systems (143.8kW), result shows a capital investment of PKR. 23.1 million with annual savings of PKR. 3.7 million In the first years, IRR is 17.5% with pay back of 6 years.
For Energy efficient plant lighting system, result shows a capital investment of PKR.4.1 million with annual savings PKR. 1.8 Million and pay back of 2.3 years. For Energy efficient air conditioning systems, result shows a capital investment of PKR. .3-= million with annual savings of PKR. 887,000 and pay back of 3.8 years.
For Use of Variable Frequency Drives for boilers, result shows a capital investment of PKR. 1.2 million with annual savings of PKR. 565, 000 and pay back of 2 years. In last, recommendations have been made for future including Energy Management System (EMS) and implementation of ISO 50001, which is an energy management system in the facility, which can provide systematic framework to conserve energy in an organization & create awareness among the employees for further operational efficiencies. Energy Management System (EMS) The system enables the user to keep monitoring and controlling of electrical energy both by area of consumption and by its use for example air-conditioning, lighting, motors and other appliances etc. Implementation of ISO 50001 Helps organisations create an energy policy and energy objectives, and methods and procedures to achieve those objectives.
Siddiqui, A. H. (2018). Energy cost savings at Asia Petroleum Limited (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/84
Available for download on Tuesday, December 31, 2030
The full text of this document is only accessible to authorized users.