On-purpose Olefins through CATOFIN -CATADIENE · PDF fileA World of Solutions On-purpose...

A World of Solutions

On-purpose Olefins

through

CATOFIN® -CATADIENE®

Technologies

Global Propylene & Derivatives

Summit

Sunil PanditraoTechnology Manager

CB&I

Agenda

Cracker Feedstock Trends

Commercial Routes to Propylene

CATOFIN/CATADIENE Technology

CATOFIN PDH Technology

CATADIENE Technology

Conclusions

1A World of Solutions

$0

$5

$10

$15

$20

$25

$30

Pri

ce $

/MM

Btu

US Oil & Gas Price History

US Oil Price US Gas Price

Diverging Oil and Gas Prices…

Source: EIA


Ethane27%

Propane7%

Butane 4%

Naphtha55%

Gas Oil 5%Others 2%

2005

Ethane 35%

Propane9%

Butane5%

Naphtha 45%

Gas Oil3%

Other3%

2015

Ethane 33%

Propane 8%

Butane 4%

Naphtha50%

Gas Oil 3%Others 2%

2010

...are Lightening Global Cracker Feedstocks


Feedstock Determines Product Slate


Ethylene Market is Healthy, but……

Global utilization moving towards peak in 2015-2016

Asia leading the way in capacity additions

Charts provided with permission of IHS Chemical

© 2012, IHS Inc. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

Regional Ethylene Capacity Trends…200 Million Metric Tons by 2020

0

50

100

150

200

250

0

10

20

30

40

50

60

70

00 02 04 06 08 10 12 14 16 18 20

World NAM MDE WEP Asia Other

Regional Capacity

Million Metric Tons

World Capacity

Million Metric Tons


3

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

0.0

50.0

100.0

150.0

200.0

250.0

Demand (2.5/3.8) Total Capacity (3.5/3.6) Forecast

Million Metric Tons Operating Rate

Forecast

(% AAGR = 07-12/12-22)

Global Ethylene Supply & Demand,

Capacity Utilization

Operating Rate


…Co-product Capacity not Keeping Pace

Cracker co-product capacity growth relatively flat

Refinery FCC units represent the other conventional source of propylene– Flat gasoline demand growth a constraint there



2

24%

26%

28%

30%

32%

34%

36%

38%

40%

42%

0.05.0

10.015.020.025.030.035.040.045.050.055.060.065.0

90 92 94 96 98 00 02 04 06 08 10 12 14 16 22

P/E RatioMillion Metric Tons

Americas Europe, CIS, & Baltics

Middle East / Africa Total Asia

Forecast

Propylene Production from Steam Crackers


Co-product Pricing Strengthening

Average annual prices provided by Global Data

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ethylene, Propylene, Butadiene Prices (2000 = 100)

Ethylene Propylene Butadiene


Propylene Growth Regions and Usage Patterns

Announced Propane

Dehydrogenation Production

Capacity of Propylene


Commercial Routes to Propylene

9

Steam Cracker

FCC

PropyleneMTOTraditional

Technologies

Propane

Dehydrogenation

PDH

Olefins Conversion

Technology

OCT

New

Technologies


On-Purpose Propylene Filling the Gap

20% of the global propylene market by 2016


-


4

0.00

5.00

10.00

15.00

20.00

25.00

30.00

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2022

Propane Dehydro Metathesis Others Olefin Cracking

Methanol-to-Olefins HS FCC % Total Production

Million MetricTons

Forecast

Percent

Propylene Market View


Favorable Feed/Product Pricing Differential

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1600.0

Pri

ce

$/t

on

Propane/Propylene Differential USGC

Information provided from ICIS Pricing, a member of the Reed Elsevier plc group

Source: ICIS


Propylene Selectivity Comparison

0

25

50

75

100

% PropyleneYield

“By-product”

Technologies

“On-purpose”

Technologies


A World of Solutions 13

Proven technology platform licensed by CB&I for single-stage, fixed bed dehydrogenation of paraffins

CATOFIN for propane and isobutane dehydrogenation

– Propane to Propylene (C3 CATOFIN)

– Isobutane to Isobutylene (iC4 CATOFIN)

CATADIENE for n-butane dehydrogenation

– n-Butane to Butadiene

and Butylenes

Catalyst supplied by Clariant

What is CATOFIN /CATADIENE Technology?

CATOFIN technology is a high selectivity process for propylene production

• propane propylene + hydrogen

• < 1.15 ton propane required per ton propylene

Fixed bed reactor system

Largest single train capacities(up to 850 kta)

Highest reliability (> 97%)

14 CATOFIN units licensed to date

• Several operating units are integrated with polypropylene

• Total propylene capacity: > 7000 kta

Why CATOFIN Propane Dehydrogenation (PDH)?



Air Heater

Reactor on Purge

Reactor on Stream

Reactor on Reheat

Fresh

Propane

Steam

Cooler

Product

Compressor

Cooler Flash

Drum

Propane Recycle

Propylene

Product

Charge Heater

Byproduct Recovery/Fuel gas

Low Temp.

Section

Air

Waste Heat Boiler (WHB)

CATOFIN Process Flowsheet


Low CAPEX design

– Optimal for areas of the world where low-cost energy is available

– Heat-pumped product splitter

– Common waste heat boiler for hot exhaust streams

Low OPEX design

– Patented “Low-energy Scheme”

– Optimization of energy use around product compressor and reboilers

– Optimization of air heating

– Best application for high energy cost regions

Flowsheet Options for CATOFIN Plant

Continuous CATOFIN Improvements

Latest CATOFIN catalyst

“breakthrough” in

commercial operation

2 – 3% increase in olefin

selectivity

5 – 10% energy savings

Up to $30 million profit

boost over conventional

catalyst units

Improves return on investment


0

500

1000

1500

2000

2500

3000

3500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Asian Ethylene, Propylene, Butadiene Prices (US$/t)

Ethylene Propylene Butadiene

What About Butadiene?

New butadiene extraction opportunities limited due to tightening raw C4 supply from liquids crackers

– Few liquids crackers remain without BD extraction from crude C4s

– Butadiene a key profit driver for Asian crackers

Recent pricing exceeded $US 4,000 per ton

– Supply limitations continue to be forecasted on back of strong demand for synthetic rubbers

Average annual prices provided by Global Data18

A World of Solutions

Butadiene/Butane Pricing

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

10/10/06 2/22/08 7/6/09 11/18/10 4/1/12 8/14/13

Pri

ce $

/to

n

Butane mix BD USGC BD NE Asia

Information provided from ICIS Pricing, a member of the Reed Elsevier plc group

Source: ICIS


Commercial Routes to Butadiene

Steam Cracker

Butadiene

“By-product”

Technologies

Butane

Dehydrogenation

“On-purpose”

Technologies

Butylene Oxidative

Dehydrogenation



Butadiene – Block Flow Scheme

CATADIENEn-Butane Butadiene

Butadiene

n-Butenes

n-Butane Butadiene

Extraction

n-Butene / n-Butane Recycle

Butene recovery for

OCT or Alkylation feed

n-Butane + Heat n-Butenes + Butadiene + Hydrogen

CATADIENE one-step dehydrogenation of butane to butadiene

CATADIENE – On-purpose BD Technology

Decade Units Built Olefins CapacityKMTA

Pre 1960 9 600

1960s 4 200

1970s 5 400

1980s 1 180

After 1990 0 0

Units currentlyoperating

3 270

Only on-purpose technology available for production of 1,3 butadiene and/or n-butenes by dehydrogenation of n-butane

First CATADIENE dehydrogenation unit started up in 1944 to meet demand for synthetic rubber during World War II

19 more units built in 1950s to 1980s

Most plants discontinued in 1970s/1980s due to abundance of butadiene as co-product from naphtha crackers

Three plants remain in operation in Russia



Proven higher selectivity of the process with the implementation of HGM

Large design capacities are possible to take advantage of the economy of scale

CATOFIN technology improved flowsheets meet local utility constraints at various locations around the world

CATOFIN productivity and profitability maximized with latest improvements

CATADIENE proven technology for on-purpose butadiene production

Conclusions


"This paper and Program may contain confidential or proprietary information.

The information, observations, and data presented in this paper and

Program are intended for educational purposes only and do not identify,

analyze, evaluate, or apply to actual, specific engineering or operating

designs, applications, or processes. The comments and opinions are those

of the author and not CB&I, are based on available information, and in all

cases reference shall be made to the actual wording and meaning of

applicable codes and standards. The use of or reliance on any information,

observations, or data provided is solely at your own risk."

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