Strategic decision making for Shell's Asia Pacific refineries in response to fuel specification changes and influencing legislation proactively (ILP)

• Main Authors: Chang, Austral Chin Li, Chong, Jonathan Wun Shiung, Chandra Mohan Janakiraman, Ram Ramakrishnan
• Other Authors: Rohit Bhatnagar
• Format: Theses and Dissertations
• Language: English
• Published: 2014
• Subjects: DRNTU::Engineering::Manufacturing
• Online Access: http://hdl.handle.net/10356/60514
• Institution: Nanyang Technological University

In this theme project, various fuel specification scenarios that might occur through 2010 are analyzed and recommendations are made to Shell on how to poise themselves strategically. These fuel specifications are limited to the transportation sector which is a major contributor to air pollution in urban cities in this region. The report highlights the qualitative and quantitative aspects of the process. The first part of the report discusses the analysis of fuel specification scenarios on harmonization, tailoring and portfolio change for Asia Pacific considering the various drivers, issues and implications that arise from these. This is followed by the development of an emissions model and Linear Program 1 (LP I) which are tools that can be used to Influence Legislation Proactively (ILP). ILP is a strategy intended to provide governments with fuel specification alternatives that favor Shell's strengths other than the recommended government specifications and would yield equal or better emissions results. LP I is used to select a set of specifications based on Shell's strengths using the results from the emissions model. Next, a Linear Program 2 (LP II) is developed to provide strategic insights on the operations for two major Shell refineries, Port Dickson in Malaysia and Tabangao in the Philippines. LP II is run on a scenario per scenario basis for both the predicted government and ILP specifications. Next, a Linear Program 3 (LP III) is developed to study the effects of allowing interactions between Port Dickson, Tabangao and Bukom refineries for specific scenarios based on the results from the LP II analyses. Finally, a Linear Program 4 (LP IV) is developed t 0 further optimize refinery throughput and logistics for P ort Dickson. The results of these analyses are used to recommend strategic actions for Shell in terms of policy changes, supply options and investments.