Consultants ⋅ Engineers ⋅ Project Managers
Chemicals and Gas

Our engineering advisory expertise for losses within the chemicals and gas sector covers all aspects of operations from raw material receipt, handling and storage, through processing and production lines, to finished product handling, storage and distribution.

Our insurance specialists can provide comprehensive insurance advisory services on equipment associated with most unit operations such as filters, separators, driers, mixers, pumps and compressors, evaporators, heat exchangers, fired heaters and specialised packaged equipment. The range of damage assessed could extend from equipment failures to complete facility destruction.

McLellan understands the need for a rapid and responsive approach to losses in the chemicals and gas industries and we can mobilise resources promptly to undertake initial site inspections for the purposes of assessing and scoping the damage to plant and equipment, buildings and associated infrastructure. We work with the insured to rapidly evaluate reinstatement proposals, including debris removal and cleaning operations, as well as temporary and permanent reinstatement works. We also provide initial reserve calculations and develop quantum and cost assessments of the remedial and temporary works in order to determine the reasonableness of property damage claims. Our insurance specialists are also able to calculate and advise on the actual cash values (i.e. depreciated value).

We have extensive experience of reviewing process operations and operational data to advise on the commercial and operational impact of a loss on the affected plants to assist with the verification of production loss claims.

In evaluating property damage losses, McLellan also recognises the importance of local issues such as legislation, productivity, methodologies and resources available for the reinstatement works. Our specialists can assist in the assessment of business interruption/operational time (production) losses including the review of operational and production data and compiling before, after and during loss scenarios. We also develop loss event timelines and critical path programmes for reinstatement works and where required, can monitor the progress of the reinstatement works on site. We work closely with the insured by providing detailed advice on potential improvements to reinstatement timescales including the proposed logic and sequencing for completion of the repairs and reinstatement of operations and production.

With our chemicals and gas industry expertise, we are also able to carry out causation investigations for possible subrogation. We understand the need to obtain and review documentation from all the involved parties including technical specifications, data logs and maintenance and production records, so that we can advise our clients in a proactive manner. Our investigations can be supported by destructive and non-destructive testing of mechanical parts, material properties analysis and chemical analysis.

Chemicals and gas industry sectors where McLellan provides insurance loss advisory services include:

Polymer production:

  • Polyethylene (PE)
  • High Density Polyethylene (HDPE)
  • Polyvinyl chloride (PVC)
  • Polypropylene (PP)
  • Polystyrene

Inorganic chemicals:

  • Salt
  • Chlorine
  • Caustic soda
  • Soda ash
  • Nitrogen trifluoride (NF3)
  • Titanium dioxide
  • Hydrogen peroxide

Acids:

  • Sulphuric acid
  • Nitric acid

Fertiliser production:

  • Phosphates
  • Ammonia
  • Potash chemical

Other chemical production:

  • Ink production
  • Tetra Acetyl Ethylene Diamine (TAED)
  • Soaps
  • Detergents
  • Cosmetics
  • Dimethyl Terephthalate (DMT)
  • Polyethylene Terephthalate (PET)

Liquefied Petroleum Gas (LPG), natural gas and crude oil production

Tankage and bulk storage

Pipelines