Puniani, Arjan Singh - CBE160 Topping Refinery Proposal

7/27/2019 Puniani, Arjan Singh - CBE160 Topping Refinery Proposal

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Topping Refinery Feasibility AnalysisPreliminary Material Consideration for:

21 Feb 2013Oral Report #1

PUNIANIP A R T N E R S

Engineering solutions leader insourcing economically-efficient

processes for mission-criticalconsumer chemical products

Simulation for University of California,Berkeley Chemical Engineering 160

Arjan S PunianiSimon Tam

Nicholas Borjian

Billy Guan

| Team Leader-elect

| Lieutenant

| Support Staff

| Support Staff


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PUNIANIP A R T N E R S RECAP PROCESS BALANCES VALUATION

Prepared Exclusively for

Processingiversion Distribution

PROBLEMFORMULATION:

Techno-economicAnalysis of TopperRefinery to Cost-Effectively Meet

Local DieselDemand

XOM ANS11U crudeoutput is ~460kBD.Preliminary dieselprocessing requires atleast 7kBD to satisfyproduction goal.

Topping refineryproduces 1kBD of CI-55diesel withoutsignificant TAPS pipingloss.

Natural gas integratedinto power. Dieseldiverted to localdemand. Lighter alkanesre-injected to TAPS.PUNIANI

PA

R

TN

ER

S

Remote production in ExxonMobils Alaskan facilities must

service local, off-road diesel demand (applications includeindustrial operations, mining, and barges). Researchestimates from previous discussions suggest a 1kBD objective.

We present preliminary findings for a proposed topper facilitythat processes the medium-grade crude ANS from the Trans-Alaska Pipeline System (TAPS) with a output capacity of 1kBD.


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Oenao


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What is minimumprocess invasiveness of

proposed topper roll-out?We need to understandhow coupled our site is to

the overall crudeproduction process.

Key Take-Away: In otherwords, how much oftoppers functions arecontributing to the overallstorage and charging

phase of the processstream?

Typical oil & gassupply-chain

Third-Party Contractor

Operating SubsidiaryPartnership Status Possibilities

Pro: Can pool resources from parent company Con: process and discipline typically conform to parent companys

culturerequire novel, creative thinking to solve next-gen engineeringproblems, which cant be cultivated in-house

Pro: Creative sovereignty (input parameters) at discretion of contractoronly final output matters; extensive experience in formulating robustsolutions suite

Con:Time to baseline knowledge function of complexity

ENDGAME ANALYSIS: A solutionthrough Puniani Partners, asopposed to mobilization of ahomegrown solution, is a revenue-maximizing enterprise (no changesto capital structure to finance

project, reallocation of managerialintellectual capital, etc.)

How Puniani Partners fits into the mix and why it makes sense


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ExxonMobil Tag: ANS11UTotal Output (bbl/day)460,000

LocationAlaska, USA API Gravity30.9-32.1Sulfur wt%0.958% AppearanceBrown-black

XOM outputs more than 130kBD of ANS11U. We detail the standard assay below:

Butane andlighter

3%

Lt. Naphtha8%

Hvy Naphtha14%

Kerosene14%

Diesel16%

Vacuum GasOil

27%

VacuumResidue

18%

Alaska North Slope (ANS11U): Feedstock Analysis

The Trans-Alaska PipelineSystem (TAPS) is an800mi+ crude-oilconveyance connecting

Prudhoe Bay to Valdez.Despite a difficult,isolated terrain in near-inhospitable conditions,crude temperatures areassumed constant: ~120F.

T

APS

10cm FiberglassInsulation

48in I.D.

Heavy Fuel Oils Residual distillation product

(atmospheric tower bottoms)classified as #6 diesel.

Used in marine industry(Bunker C Fuel) and verylarge diesel engines

ANS HFOs amongst lightestin the industry (API ~20), butheavy sulfur content posesunique engineeringproblems and limitsapplication potential withoutconcomitant capex spend

Low asphatenes/heavymetals content introducespossibility of entering bunkerfuel market, FCC coker unitfeedstock market, andvarious diesel yield-enhancement schemes

For Today: Ignore potential asdiesel yield enhancement

Volatiles

Kerosene

Colorless gas, which, aftercatalytic reforming,becomes high-octanemotor gasoline.[Processing capex cannot be

justified for regionsolution:ship to Canada as diluent fortar sands oil transportation]

Diesel

Thin, light-colored cooking,lamp, and jetfuel.[ D ep en d i n g o n

prevailing marketconditions, can opt

to blend kerosene

with diesel fuels

product suite tomaximize output]tmospheric gas oil (AGO),aka fuel grade #4 diesel.Technical specs demandCI-55 grade diesel, whichcommands additionaldownstream processingunits in the proposedrefinery. BP: [400-530F]


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Details on target fuel: diesel of grade (cetane index) 55

365,000bbl per annum

PRODUCTION GOALPetrol mixes (e.g. crude) can possess 102-105 componentsneithernecessary nor desirable to model and separate every single pure

components. Once we decide upon abstraction procedure,downstream ops will focus on attaining desired grade

PRIMARYMETHODSOFTHROTTLING-UP CI

Using cetane improver

chemistry (2-ethylhexyl nitrate), one canachieve higher cetanewithout correspondingloss in power and fuel

efficiencyperformance.

Use DC train to attain a

certainAPI gravityrating: 36.3. Fuel

economy suffers ofrefining-based cetaneenhancement. Classify

fuel via distillationprofile.

Chemical Back-EndRefinery Stage

1 2

Governingcomposition ofincomingcrudeapproximatedas:

Please refer to appendix for governing

Simulation Integration Plan

Rather than register pure constituents into ASPEN,our team opted for integrated petroleum simulationsuite in ASPEN.


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Process Design Algorithm whats still on the Puniani Partners plate

Establish Product Definition

Process Flow Diagram Development

Material & Energy Balances

Characterizing Overall Financial Profile

Deep Reflection & Continuous Reiteration

Progress

Identification of local natural gas demand and other alternatives toflaring

Recycle streams, thermodynamically-rigorous separationtechnologies, etc., require input to our simulacrum!

Identifying sinks and sources of cash flow, whilst respecting green agenda Optimizing tradeoff between profitability and sustainability represents

largest challenge, though current rendition focuses on

Explicit characterization of product specifications and grade Define major analytical requirements Establish market size to gauge profitability potentialThe focus oftodayspresentation

ishighlightedhere:

Appropriate synthetic technology selection is primary objective Comprehensive design frontier optimizes each sub-process,maximizing likelihood of overall design optimality

Defining all relevant materialsreagents & consumables Sizing reactors and equipment and reconciling with hand calculations Next steps: Rigorous incorporation of appropriate utilities and labor

components to contribute to rapid prototyping and time-to-market


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A topper is easy tointegrate

Interested in sating off-road diesel demandmeans focus on gasoilsand straight-run (SR)fuel exclusively.

Capital light execution,since need not concernwith catalyticreformation, etc. (Cf.simplification right)

FURTHER STUDYTests are scheduled toassess the relativeeconomic value betweenenhanced dieselextraction from SR fuels/HGOs and the yieldresulting from adifferential step increaseof the tapped crude

Crude

Tap

AtmosphericResidue SR fuels

Dieselsasoil Gasoils

NapthaLPG

Jet/KeroGasoline

NapthaLPG

Jet/KeroGasolineCrude-

Distillation

LPG

Light Naphtha

HeavyNaphtha

Kerosin

Target

ReturnedtoPipeline

To sate the local off-road diesel demand, our proposed process demands thehighly-separable heavy components (tars, residues, and diesel gasoil) of the crude

oil spectrum. Definitions of SR fuels/AMO/heavy distillates vary, so our team

requires Project Sponsor specification.nSm

A topper is the simplesttype of refinery

50,000ft view of target process and major considerations


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UtilitiesProcess Water

Well-Head

DownStreamTrans-Alaskan Pipeline

ANS11U Tap Degraded Crude

Diesel

Desalinization

Crude-Distillation

UtilitiesElectricitySteamFuel

SO2Control[AmineTreatment]

Natural Gas PowerCo-Generation

UtilitiesElectricitySteam

Raw MaterialsAmine

Diesel Hydro-desulfurization

PurificationTrain

EnhancementSuite

H2S

UtilitiesElectricitySteamRaw Materials*Hydrogen

UtilitiesElectricitySteamFuel

Raw MaterialsValue-generating additives

UtilitiesElectricity

WastewaterTreatment

UtilitiesElectricitySteam

CO2

HGO Diesel Pathway (Tentative)

BlockFlow

DiagramBlueprints

PM ControlElectrostaticPrecipitation

Sour GasTreatment

H2S


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A topper is easy tointegrate

Exceedingly impracticalto simulate on a reactionbasis (e.g. usingstoichiometry ofcomponents)

Instead, treat crude as aspectrum, withdistinctions made acrossBPs rather than analmost infinite numberof discrete hydrocarbons

Crude oils n-Alkanedistribution is incrediblysparse

Theoretical underpinnings of simulation crude-distillation

Crude oil compositionapproximated by the trueboiling point distillationcurve (TBP), which can becalculated in ASPEN viaPetroleum with EnglishUnits > Assay Data

Analysis.Temperature,F

1500

-100 B CA

EFV

Volume Percent Vaporized

TBP

ASPENCommands


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To assist with the estimation of capital costs, we turn to our comparables universe and single outnotable topper refineries that are strongly aligned with our own proposed roll-out.C A S ESTUDY

Economic Analysis Comparable Valuation

Joint Venture: MDU ResourcesCalumet SpecialtyProducts PartnersApprox. Annual Revenues

$234mnFootprint318 acresLocation

N. Dakota, USA

Order of Magnitude Estimates

Crude ProcessedBakken CrudeHeadcount

~100

At the current stage of our designprocess, we utilize a Class 5 Capital Cost

estimatespecifically, the scalingfunction, which is based on the knowncost of an earlier plant equipped with thesame technology for producing a fairlysimilar product suite.

The Dakota Prairie refinery cost an est.$280mn, and when using our lower limitof 7kBD crude processed (compared totheir 20kBD), we estimate a facility costof:

$149mn


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Remaining Process Loose-ends

1 HydrogenProductionRaw water is required tocompensate for steam/coolingstream losses, and, when

treated, is a source of DI water.For water demands of


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Summary of Assumption Brief Description of Rationale

The physical properties of the crude oilcomponents do not change over transit.Includes the 120F crude tap. [Source: XOMANS11U spec sheet, public domain]

Use the two-stage process common to mostrefineries, where the PetroFrac

Assume plant is out of commission 15% of

the yearso we concentrate the load acrossthe remaining days of the year

For economic analysis, we assumed perfectcorrespondence with our proposal and therefinery.

Assume: significant transient heat transfers for crudelocalized entirely at wellhead. For well-maintained

transport pipeline, reasonable to expect consistency ofcrude spectrum along all points of TAPS. Insulation and

generators ensure constancy of T.

Major assumptions include VLE existence at everystage. No pressure differential exists across the

fractionation unit, as well.

If we simply distribute 55,000BD across the remaining310d, it added an extra 177.419BD.

Similar risk profile, product suite, and technology used.

Assay Consistency

Atmospheric Tower Fractionation

Operating Days

Dakota Prairie is a Perfect Comparable

We hope to interface with the Project Sponsor Team frequently to assess operating validity of above

Major Assumptions Tracker


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Possible turbulence? -- compliance and the regulatory environment

CO2 Cap: 8hravg. of10mg/m3 nomore thanonce a year

ParticulatesCap: forPM-10, limitover 24hravg. cannotexceed 150g/m3

Flash Pointmin.: 100F(summer),125F (winter)

Max carbonresidues:0.15wt%(summer),0.35wt%(winter)

0.01wt% maxof ash

80 g/m3annual avg. 24hr avg.of 365 not to

be exceededmore thanonce per yr.


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APPENDIX


PUNIANIP A R T N E R S


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ANS: Compendium of Physical Properties [1/2]

Characteristics

WOgn

A Nm

A

Alaska, USA. Line sample off TAPSjuncture near Petrostar Refinery inValdez (19 Mar 2002)

ANS (govt.), ANS11U (XOM)

Brown-black, light, little odor, fineblack particulates disperseduniformly throughout liquid

Source: EPA File Docket 600 R03 702

30.89

%Ev = (2.86+0.045T) lnt

Calculated APIGravity

Calculated Quantities

Equation for Predicting Evaporation

%Ev=[wt%]evaporated;T=surfacetemp.[C];t=>me[minutes]

Weathering (wt%) Sulfur (wt%)0 1.11

10.0 1.20

22.5 1.38

30.5 1.50

Sulfur Content

Weathering (wt%) Hydration (wt%)0


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ANS: Compendium of Physical Properties [2/2]

PUNIANIP A R T N E R S APPENDIX


Source: EPA File Docket 600 R03 702


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Proposed Process Block Diagram Detailed Unit Ops



Volatiles-based CogenerationAmine Treatment

An amine treatment is the industry standard of sweetening.Our primary objective is establishing proof-by-concept

RationaleAn amine treatment

Rationale


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Proposed Process Block Diagram Detail: Hydro-desulfurization




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Our company has recently participated in the development of a number of new/expanded oil fields. In some cases, the production facilities are in remote

locations, and it has been determined that there is a need for a facilities toproduce 1000 B/D of off-road diesel fuel for local use in industrial operations,

mining, and barges near these locations. Your team has been asked to designthe necessary facilities and estimate the capital and operating costs for these

facilities. These topping refineries will be located in a remote location near

existing crude oil pipelines. The refineries will process A) ANS (Alaska NorthSlope) crude in northern Alaska or B) Tengiz crude in Kazakhstan. The refinery

can take crude from the pipeline, process the crude to produce the required

diesel fuel, and re-inject the residual oil back into the pipeline. The dieselproduced must have a minimum cetane index of 55. There is very limited

infrastructure at either site so everything required to support the sitesoperations must be provided. There is local power that is not reliable and raw

water is available. Environmental considerations will also affect the design.

Distribution will by trucks. Determine what facilities will be required and thecapital and operating costs of these facilities. Estimate manning requirements,

utilities, chemicals, and catalyst needs.

Reiteration of Original Problem Statement

Puniani, Arjan Singh - CBE160 Topping Refinery Proposal

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