Engineering Procedure

SAEP-142 14 June 2015

Management of HVAC Equipment Replacement
Document Responsibility: HVAC Standards Committee

Saudi Aramco DeskTop Standards

Table of Contents

1 Scope............................................................ 2
2 Conflicts with Mandatory Standards........….. 2
3 Applicable Documents................................... 2
4 Definition........................................................ 3
5 Responsibilities.............................................. 4
6 Procedure’s Components.............................. 5
7 Components Description............................... 6

Appendix A......................................................... 14
Appendix B......................................................... 15

Previous Issue: New Next Planned Update: 14 June 2018

Primary contact: Al-Hamid, Adel Sulaiman (hamias0a) on +966-13-8809593

Copyright©Saudi Aramco 2015. All rights reserved.

Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

1 Scope

1.1 This procedure describes the implementation and administration requirements to

facilitate proactive condition monitoring and to ensure cost effective replacement of
HVAC equipment within Saudi Aramco facilities. Guidelines are based on life
cycle cost concept, ensuring continuous and reliable operation of HVAC systems.

1.2 This Procedure defines criteria for determining suitable optimization/replacement

strategy for HVAC equipment with focus on elevating energy efficiency and
reducing environmental impact throughout Saudi Aramco Facilities.

1.3 This Procedure covers the following major energy consuming HVAC equipment:
 Air Cooled Chillers.
 Water Cooled Chillers.
 Central DX Units.
 Packaged Units.

1.4 HVAC Equipment which failure would constitute a safety hazard shall be
modified or replaced immediately based on evaluation by Loss Prevention
Department.

2 Conflicts with Mandatory Standards

Any conflict between this Procedure and other applicable Saudi Aramco Engineering
Procedures (SAEPs), Saudi Aramco Engineering Standards (SAESs), Saudi Aramco
Material Systems Specifications (SAMSSs), Saudi Aramco General Instructions (GIs),
or other applicable Company operating instructions shall be resolved in writing through
the Manager, Consulting Service Department.

3 Applicable Documents

The mandatory engineering requirements of the HVAC system for specific application shall
be considered per the relevant Saudi Aramco and international codes and standards.

3.1 Saudi Aramco References

Saudi Aramco Engineering Standards

SAES-K-001 Heating, Ventilating and Air Conditioning (HVAC)
SAES-K-002 Air Conditioning Systems for Essential Operating
Facilities

Page 2 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

SAES-K-003 Air Conditioning Systems for Communications

Buildings

3.2 Industry Code and Standard

American Society of Heating, Refrigerating and Air Conditioning Engineers

ASHRAE 90.1 Energy Standard for Buildings Except Low-Rise
Residential Buildings

4 Definition

HVAC: Heating Ventilation and Air Conditioning.

Database: Data developed and maintained by each respective proponent, this database
will be available company-wide for sharing experience and lesson learned.

HVAC Master Plan: A plan headed by FPD, to address all expected future projects,
including the replacement of HVAC equipment.

HVAC Technical Points of Contact (HTPC): Person familiar with HVAC equipment
types, and has past experience in HVAC.

Major Failures: Any event resulting in a loss or degradation of the function of the
equipment being analyzed due to failure of major parts such as compressor, heat
exchanger, refrigerant leakage, and resulted in downtime of more than 48 hours.

Energy Efficiency Ratio (EER): The ratio of net cooling capacity in Btu/h to total rate
of electric input in watts under designated operating conditions.

Coefficient of Performance (COP): Cooling in KW/input power in KW

Smart Matrix Tool (SMT): A tool that includes information about the HVAC system,
such as age, failure type, this tool utilizes scoring system based on ten categories to
estimate the final score and degree of replacement.

Life Cycle Costing (LCC): The total discounted costs of owning operating, maintaining,
and disposing of building system over appropriate study period.

FPD: Facility Planning Department

Life Cycle Costing Analysis (LCCA): A general approach to economic evaluation that
encompasses several related economic evaluation measures, and take into account all
costs related to owning, operating, maintaining equipment over the life of equipment.

Air Cooled Chillers: An air conditioning unit that removes heat from a liquid via a
vapor-compression Cycle. This liquid can then be circulated through a heat exchanger

Page 3 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

to cool air or equipment as required; the heat rejection of this chiller is removed by
Condenser’s fans.

Water Cooled Chillers: An air conditioning unit that removes heat from a liquid via a
vapor-compression or absorption refrigeration cycle. This liquid can then be circulated
through a heat exchanger to cool air or equipment as required, the heat rejection of this
chiller is removed by cooling tower.

Central Split: Air Conditioning system consisting of equipment provided in more than
one enclosure, usually with supply air distribution equipment housed separately from
the refrigeration equipment.

Packaged Units: An air-conditioning unit having the means of air cooling, air heating,
air circulation, air cleaning, and the controls thereof, in the same cabinet with the
condensing unit.

5 Responsibilities

5.1 Proponent Responsibility

5.1.1 Proponent is responsible for the overall administration, coordination, and

execution of the HVAC Replacement Program for his respective facility.

5.1.2 Proponent Representative is responsible to obtain and input vendor

specific Database information.

5.1.3 Proponent is responsible for updating criteria input data of equipment

using the HVAC Equipment Replacement SMT.

5.1.4 Proponent Department HTPC shall build the database sheet as per
Appendix A.

5.1.5 Complete all individual criteria section of the SMT as mentioned in this
SAEP.

5.1.6 Proponent to submit the database with SMT overall recommendation and
relevant data and documents to FPD.

5.1.7 Proponent shall follow up with FPD regarding the status of the outcome.

5.2 FPD Responsibility

5.2.1 Review the SMT overall recommendation and data provided, and
confirm the individual data input.

5.2.2 Confirm category of equipment replacement.

Page 4 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

5.2.3 Conduct life cycle costing as required by this SAEP.

5.2.4 Use the HVAC Equipment Replacement Database as one input to a

business case analysis on new project submittals from proponents, and
for future updates to the HVAC Master Plan.

5.2.5 Maintain its traditional role of business case and project alternative
analysis, and the development of project justifications consistent with the
Capital Programs investment policies, and requirements of Corporate
Planning and Finance.

5.2.6 Utilize Replacement criteria evaluations to identify business

opportunities, and assist in the development of migration, upgrade and
replacement Programs and Planning Strategies via updates of the HVAC
Master Plan.

5.3 CSD Responsibility

5.3.1 HVAC Standards Committee shall be responsible for ownership of this

SAEP.

5.3.2 Assist with all technical matters associated with this effort.

5.3.3 Review equipment condition assessment reports.

5.3.4 Maintain and update SMT as necessary.

5.3.5 Mediate, and provide interpretation on issues related to this SAEP.

6 Procedure’s Components

HVAC Equipment Replacement procedure consists of the following components:

6.1 DATABASE: A Company-Wide database of HVAC Equipment information

prepared by each Proponent department. This database shall be accessible to all
Business Lines, Admin Areas and Departments. This Database shall be updated
and maintained by each respective Proponent in a cycle that does not exceed
three years.

6.2 CRITERIA: Ten points Replacement evaluation Criteria and scoring system
with guidelines that are intended to provide an objective measure of replacement
for existing HVAC Equipment. The Criteria will be populated and updated by
each respective Proponent using the database and the Smart Matrix to determine
and track HVAC equipment replacement.

Page 5 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

6.3 REPORTS: Upon completion of the Criteria evaluation, and the Smart Matrix
the Proponent shall generate the report.

6.4 Replacement Plan: Reports shall be provided by Proponent to Facilities

Planning Department (FPD) as an input to the development of the business case
methodology for new project submittals by Proponents, and shall be used for
future updates of the HVAC Master Plan.

7 Components Description

This section provides an overview of the requirements to manage the HVAC Equipment
Replacement Database, Replacement Criteria, and Reporting Systems.

7.1 Database

The database contains detailed information on the existing HVAC Equipment

for each Saudi Aramco facility. The database tracks the following equipment
types:
 Air Cooled Chillers
 Water Cooled Chillers
 Central Split
 Packaged units

7.1.1 Proponent Department shall develop a comprehensive database of the

HVAC equipment Using the Smart Matrix tool, see Appendix A.

7.1.2 Proponent Department shall appoint HVAC Technical Points of Contact

to collect, populate, and maintain the Smart Matrix tool database as
required by this procedure.

7.1.3 The database shall be based on best available information and shall be
updated in a cycle that does not exceed three years.

7.2 HVAC Replacement Criteria

7.2.1 The HVAC Equipment Replacement Criteria consists of 10 individual

criterions. These criterions will be inputted into the SMART Matrix
which will produce an objective measure of that HVAC equipment,
degree of replacement is classified into three categories, as follow:
 Obsolete and Recommended for replacement
 Transitional (require LCC as additional measure)
 No action required (Periodical monitoring)

Page 6 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

7.2.1.1 Criteria 1: Location of HVAC Equipment

Location is divided into the following:

 Out of plant Area-Within 2 KM of seashore
 Out of plant Area-More than 2 KM from seashore
 In plant Area -Within 2 KM of seashore
 In plant Area -More than 2 KM from seashore
 In plant Area - Offshore

7.2.1.1.1 The effect of the In-plant area /proximity to

seashore is embedded in the SMT.

7.2.1.1.2 In plant area and/or Proximity to the seashore directly

affect the HVAC equipment material, which make
equipment more susceptible to corrosion and
degradation.

7.2.1.2 Criteria 2: Criticality of the Facility

HVAC equipment is considered critical if it serves:

7.2.1.2.1 Essential operating facility as defined in

SAES-K-002, or SAES-K-003.

7.2.1.2.2 For facilities not covered in the drop down list in the
SMT, Proponent Management shall submit request
to CSD for assessment and recommendation.

7.2.1.2.3 The criticality of the facility is embedded in the

Smart Matrix tool.

7.2.1.2.4 Higher score is assigned for equipment that serves

critical facilities.

7.2.1.3 Criteria 3: Age of Equipment

7.2.1.3.1 Age of equipment shall be based on the date of

installation.

7.2.1.3.2 Equipment service life is based on ASHRAE and

SAES-K-001.

7.2.1.3.3 Scoring is directly proportional to the age of

equipment.

Page 7 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

7.2.1.3.4 Age of equipment shall be inputted into the SMT.

7.2.1.4 Criteria 4: Availability of Backup System

7.2.1.4.1 HVAC equipment is considered redundant if there is

a standby unit that serves the conditioned space in
case of loss or failure of the main HVAC equipment.

7.2.1.4.2 Lack of standby unit in critical facility will result in

prioritizing replacement of the HVAC equipment by
additional scoring.

7.2.1.4.3 If critical facility is not provided with standby unit

the SMT will flag the equipment as serious concern,
Proponent shall act on complying with standards
immediately.

7.2.1.5 Criteria 5: Availability of Spare Parts

7.2.1.5.1 Availability of spare parts is a vital element in HVAC

Replacement and this is reflected in the SMT.

7.2.1.5.2 This criteria is based on the availability of spare

parts within the Saudi Aramco system, the Original
Equipment Manufacturer or from an approved third
party supplier.

7.2.1.5.3 The SMT will flag any abnormal entries based on

unit type and corresponding age.

7.2.1.6 Criteria 6: Refrigerant Type/Leakage Rate

7.2.1.6.1 This criteria is to ensure compliance with the

governmental and environmental requirements with
respect to impact on ozone depletion potential
(ODP) by CFC and HCFC refrigerants and global
warming potential (GWP).

7.2.1.6.2 This criteria is based on the refrigerant utilized in

the equipment.

7.2.1.6.3 Refrigerant Leakage percentage is calculated by

dividing the weight Refrigerant added annually/The
weight of the system’s full charge.

Page 8 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

7.2.1.6.4 Leakage rate is classified into four categories, each

has a corresponding scoring weight based on the
leakage rate and refrigerant type, these categories are:
 (0% - <2%)
 (2% - <4%)
 (4% - 6%)
 More than 6%

7.2.1.7 Criteria 7: Energy Efficiency Ratio (EER)/COP

7.2.1.7.1 The energy efficiency ratio is one of the main

factors to:
 Ensure compliance with Saudi Aramco Standards
 Improve energy efficiency
 Reduce operational costs.

7.2.1.7.2 EER, COP, or KW/Ton shall be based on the

equipment name plate.
Note: If EER, COP, or KW/Ton is not available on
nameplate then the HVAC equipment Proponent
shall obtain this information from the respective
manufacturer.

7.2.1.7.3 Degradation in Energy efficiency of the equipment

is taken into consideration and is based on age and
condition of equipment.

7.2.1.7.4 SMT will correct the EER value based on the

inputted age of the equipment, correction is based
on an interval of 5 years of equipment life.

7.2.1.7.5 Score and weight is based on comparing the

corrected EER of the HVAC equipment with
ASHRAE 90.1 values, and SAES-K-001, and has
been divided into four categories:
 50% less than SAES-K-001 EER Values
 30% less than SAES-K-001 EER Values
 Up to 20% less than SAES-K-001 EER Values
 Meet or exceed SAES-K-001 EER Values

Page 9 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

7.2.1.8 Criteria 8: Reliability of the Equipment

7.2.1.8.1 This score is based on the number of major failures

that have occurred in one year.

7.2.1.8.2 Failures caused by human error shall not be

considered.

7.2.1.8.3 Proponent shall score this criteria based on actual

existing data.

7.2.1.8.4 The assessment of the condenser/Evaporator

coils/fins has been divided into three categories
based on degradation and corrosion level relative to
brand new equipment, these are:
 Degradation/Corrosion Less than 15% of brand
new equipment
 Degradation/Corrosion between 15% - 30% of
brand new equipment
 Degradation/Corrosion More than 30% of brand
new equipment

7.2.1.8.5 Physical condition shall be assessed by qualified

technician.

7.2.1.8.6 The assessment of the Shell & Tube heat exchanger

of chillers has been divided into four categories
based on percentage of tubes plugged to the total
number of tubes in the heat exchanger, these are:
 Plugged tubes is less than 1%
 Plugged tubes between 1%-<3%
 Plugged tubes between 3%-<=5%
 Plugged tubes more than 5% but <10%

7.2.1.8.7 Electrical components and electronic controller is

based on number of repeated major failures per year.

7.2.1.9 Criteria 9: Major Replacement of HVAC Components

7.2.1.9.1 The score will take into consideration the

replacement of the critical components such as
compressor, condenser, and evaporator.

Page 10 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

7.2.1.9.2 Equipment with replaced major parts within the last

five years will be credited accordingly.

7.2.1.10 Criteria 10: Simple Payback

7.2.1.10.1 Simple payback is a function of operational and

maintenance costs.

7.2.1.10.2 Payback is calculated by dividing the estimated cost

of new unit by the sum of the operational and
maintenance cost savings.

Payback = Estimated cost (new unit)/(operational &

maintenance savings/Yr.)

7.2.1.10.3 Maintenance cost include costs associated with

major failure/ replacement and does not include the
routine PM.

7.2.1.10.4 Operational cost saving is based on:

 Capacity of the unit (Ton)
 Annual operating hours
 Difference between actual EER, COP, or KW/Ton
(as provided by nameplate) of the existing unit and
the proposed energy efficient unit.
 Load factor of the unit.

7.2.2 Criteria Scoring

The HVAC Equipment Replacement Criteria is to be scored utilizing the

information retained in the database. The Criteria requires careful and
deliberate evaluation using the best information and data available; these
data shall be populated by the HTPC.

7.2.3 Scoring Application

The HVAC Equipment Criteria, scores, and weight factors are embedded
in the Smart Matrix Tool, which is user friendly and will require inputting
each specific criteria [hyperlink]. This input will be used to run through
logic formulas in the Matrix that will provide recommendation of the
HVAC equipment replacement, and will flag areas of concern.

The Smart Matrix tool will also provide an estimated annual energy
saving if the unit is replaced with an energy efficient unit that complies

Page 11 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

with ASHRAE 90.1.

7.3 HVAC Equipment Replacement Reporting

HVAC Equipment Category Reporting is divided into three areas:

7.3.1 Category 1: HVAC Equipment is not due for replacement, Continue to

Monitor and Report.

7.3.2 Category 2: Further Analysis is required through Life Cycle Costing

Analysis to build a business case and justify replacement.

7.3.3 Category 3: Equipment is recommended for replacement, Proponent

shall submit recommendation and documentation to FPD/PMOD for
verification.

7.3.4 HVAC Equipment Replacement request shall be initiated by Proponent.

7.3.5 HVAC Equipment Replacement Report shall be generated by the

department Proponent showing all criteria labels supported with
documentation.

7.3.6 The report and overall recommendation shall be submitted by Proponent

to FPD for review.

7.3.7 FPD shall review the report and provide recommendations to the
Proponent accordingly.

7.4 HVAC Replacement Plan

The HVAC Equipment Replacement condition as measured through this SAEP,

is one of the inputs to developing the business case justification for HVAC
Equipment upgrade or replacement projects. In itself, the result of the
replacement measurement does not constitute justification, inclusion or approval
of a project in the Capital Program.

Following are general guidelines that shall be used to plan for HVAC equipment
identification and replacement:

7.4.1 Before submitting any business case, Proponent shall conduct HVAC
Replacement assessment, and use the SMT tool.

7.4.2 Proponent shall support the SMT input data with documents,
e.g., equipment condition assessment report, equipment test result, and
maintenance cost.

Page 12 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

7.4.3 Once equipment Replacement is confirmed, FPD will prioritize HVAC

Equipment replacement based on the SMT output.

7.4.4 FPD shall conduct economic analysis based on LCC analysis for HVAC
equipment in Category 2.

7.4.5 Life Cycle Costing Analysis shall evaluate different energy efficient
options with comparison with the base case (Existing equipment).

7.4.6 Criteria for accepting or rejecting replacement shall be based on defined

acceptable net savings, ROI, and discount rate as determined by FPD.

7.4.7 Components of the LCC shall be based on:

7.4.7.1 Operational Cost

Operational cost is estimated based on EER/COP of the units,

hours of operation, and cooling capacities, for both existing
and alternative option.

7.4.7.2 Maintenance Cost

Maintenance cost includes costs associated with major failure/

replacement and does not include the routine PM.

7.4.7.3 Capital Cost

Cost for purchasing and installation of the alternative energy

efficient equipment.

7.4.7.4 Discount Rate

As determined by FPD.

7.4.7.5 Assumptions

Assumptions shall be on best engineering judgement.

These assumptions include items such as operating hours,
environmental conditions, EER, and maintenance cost of the
alternative units and shall be documented.

Revision Summary
14 June 2015 New Saudi Aramco Engineering Procedure that provides implementation and administration
guidelines and tools to facilitate proactive condition monitoring and cost effective replacement
of HVAC equipment within Saudi Aramco facilities.

Page 13 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

Appendix A

See attached SMT: (Hyperlink to SMT)

Page 14 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

Appendix B

Criteria 1: Location of HVAC Equipment

Guideline for scoring:
Score Weight
Out of plant Area-Within 2 KM of seashore 10 2
Out of plant Area-More than 2 KM from seashore 10 0
In plant Area -Within 2 KM of seashore 10 4
In plant Area -More than 2 KM from seashore 10 3
In plant Area -Offshore 10 5

Criteria 2: Criticality of the Facility

Guideline for scoring:
Criticality of the facility Score Weight Factor
Critical 10
Non-Critical 0 4

Criteria 3: Age of Equipment

Guideline for scoring:
Age of Equipment ≤3 >3-5≤ >5-10≤ >10-15≤ >15-20≤ >20
Water Cooled Chiller 0 0 10 20 30 60
Air Cooled Chiller 0 10 20 30 40 80
Packaged 0 20 30 40 50 100
Central Split DX 0 30 40 50 60 120

Criteria 4: Availability of backup system

Guideline for scoring:
Availability of backup system Score Wt Fact
No Standby 10
1
Standby Available 0

Criteria 5: Availability of spare parts

Guideline for scoring:
Spares availability Score Wt Fact
Not available 10
8
Available 0

Page 15 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

Criteria 6:Refrigerant Type/Leakage Rate

CFC/HCFC
0%-2% 2%-4% 4%-6% More than 6%
Score 10
Wt Fact
Water Cooled Chiller 3 3.5 4 8
Air Cooled Chiller 2.5 3 3.5 7
Packaged 2 2.5 3 6
Central Split DX 1.5 2 2.5 5

Other than CFC or HCFC

2%-4% 4%-6% More than 6%
Score 10
Wt Fact
Water Cooled Chiller 3 3.5 7
Air Cooled Chiller 2.5 3 6
Packaged 2 2.5 5
Central Split DX 1.5 2 4

Criteria 7: Energy Efficiency Ratio (EER)/COP

Water cooled Score Wt factor
50% less than SAES-K-001 EER Values 10
30% less than SAES-K-001 EER Values 5
10
Up to 20% less than SAES-K-001 EER Values 2
Meet or exceed SAES-K-001 EER Values 0

Criteria 8: Reliability of the Equipment

Guideline for scoring:
A) Mechanical Failure
Major Mechanical Failure per Year Score Wt Fact
Water Cooled Chiller 10
Air Cooled Chiller 10
10
Packaged 5
Central Split DX 5

Page 16 of 17
Document Responsibility: HVAC Standards Committee SAEP-142
Issue Date: 14 June 2015
Next Planned Update: 14 June 2018 Management of HVAC Equipment Replacement

B) Corrosion
% of Corroded Area Score Wt Fact
No corrosion 0
Less than 15% 2
10
15% - 30% 4
More than 30% 8

C) Plugged tubes in Water Chillers

% of plugged tubes in Water Chillers Less than 1% 1%-3% 3%-5% More than 5%
Score 10
Wt Fact
Water Cooled Chiller 3 3.5 4 8

D) Number of Controller Failure

Number of Controller Failure per Year Score Wt Fact
1 to 3 Failures 2
3 to 6 10 4
more than 6 8

Criteria 9: Major replacement of HVAC components

Guideline for scoring:
Period of Major replacement Score Wt Fact
1 - 3 yrs. -4
3 - 5 yrs. 10 -2
More than 5 yrs. 0

Criteria 10: Simple Payback

Guideline for scoring:
Simple payback Score Wt Fact
up to 3 yrs. 10
3 to 6 yrs. 10 8
6 to 10 yrs. 4

Page 17 of 17