Refinery Pivot Points in a Refinery Petrochemical ...

Global Refining and Petrochemical Congress

17th -18th July, 2019

Refinery Pivot Points in a Refinery –

Petrochemical Integrated Complex

Rajesh Samarth

Vice President- Business Development

LUMMUS TECHNOLOGY 2

Challenges Facing Refiners

Reduced Growth in Fuel Demand

►Extended Fuel Mileage

►Enhanced Electric Vehicles

►Environmental Headwinds

► Total Transport: Oil,

Biofuels, Gas, Other

CAGR

2.8%

1.1%

GDP vs Total Transport

LUMMUS TECHNOLOGY 3

Drivers of Rapid Petrochemicals Growth

Africa / Middle EastAsia Pacific

Latin America

Europe

North America

Global Middle Class Growth

2030

5.3 Billion People

0.4

0.3

0.7

0.3

1.4 3.4

0.50.7

0.3

0.3

0

50

100

150

200

250

300

350

400

1990 2000 2010 2020 2030 2040 2050

Index =

100

Relative Olefins and Aromatics Demand vs GDP

Relative

Olefins and

Aromatics

GDP

McDermott: Profit Pivot Points

From 2016 to 2040, 40%

chemicals sector growth

Quality of Life Improvement

Rising Prosperity

Development of Middle Class

Petrochemical growth exceeds

GDP growth

Emerging Markets

unprecedented Growth

2015

3 Billion People

LUMMUS TECHNOLOGY 4

Synergies of Refinery / Petrochemical Integration

► Recent Trend: Greater Integration not just Co-location

► Position Petrochemicals Plants near:

►Low-cost feedstock

►Lower Transportation Costs for Feedstocks

►Fuel Sources

►Existing Infrastructure

►Downstream Markets: PE / PP / PET

► Petrochemicals Provide High Value Outlet for Refiners

Complimentary Units

Refinery

H2

Naphtha

Py-Oil

Petrochemicals

LUMMUS TECHNOLOGY 5

McDermott Technology – One Stop Shop

❑ Leading Technology Licensor

❑ Refining

❑ Petrochemical

❑ Gas Processing

❑ Coal Gasification Technologies

❑ 120+ Licensed Technologies

❑ 3000+ Patents, Applications, Trademarks

❑ Industry Leading Ethylene Technology

❑ Joint Venture

❑ Chevron: Major Oil Company

❑ McDermott: A Premier EPC Company

❑ 100+ Hydroprocessing Plants Designed

Worldwide

❑ Active R&D Programs, Pilot Plant in

Richmond, CA and Pasadena, TX

Lummus TechnologyChevron Lummus Global (CLG)

LUMMUS TECHNOLOGY 6

Traditional Refinery

Atm

Tower

Crude

Vac

Tower

DHT

LPG

NHTCCR

Naphtha

Jet, Diesel

Resid

VGO

HT

Delayed

Coker

FCC

VGO

Hydro

CrackPropylene

Gasoline

Cycle Oil

IsomGasoline

H2

Gasoline

Oil Conversion

90% Fuels

10% Chemicals Coke

Jet, Diesel

Bottoms

Aromatics

LUMMUS TECHNOLOGY 7

Traditional Petrochemicals

Gas Feed

Steam

Cracker

Hydrogen

Fuel Gas

Ethylene

Ethane

Gas Crackers

PGO/PFO

Pygas

LPG

Liquid Feed

Steam

Cracker

Hydrogen

Fuel Gas

Ethylene

Propylene

Butadiene

BTX

PGO/PFO

Naphtha

AGO

VGO

Mixed C4s

Pygas

HVGO

Liquid Crackers

LPG

LUMMUS TECHNOLOGY 8

Feed Flexible Petrochemical Complex

Mixed Feed Steam Crackers

Provide Ultimate Flexibility

Multiple Feeds and Products

Larger Capacity

Hydrogen

Fuel Gas

Ethylene

Propylene

Butadiene

BTX

PGO/PFO

Naphtha

AGO

VGO

Mixed C4s

Pygas

HVGO*

Ethane

Mixed Feed Crackers

LPG

*Hydrocracked

Vacuum Gas Oil

Mixed

Feed Steam

Cracker Unit

LUMMUS TECHNOLOGY 9

Integrated Refinery and Petrochemicals Unit

Atm

TowerCrude

LPG

Jet

Diesel

Resid

ISO

CRACKER

Naphtha

Mixed

Feed

Steam

Cracker

Unit

Naphtha

Ethylene

Propylene

Mixed C4s

HVGO

C5+ Pygas

Hydrogen

Vac

Tower

VGO

Dow

nstr

eam

Petr

ochem

icals

Units

Diesel BTX

Hydro

processing

ULSFO

Py-OilLC-Fining / LC-

Max / LC-Slurry

LUMMUS TECHNOLOGY 10

Profit Pivot Points for an Integrated Complex

• Optimize Cracker Feeds

• Balance Hydrogen Consumption to Optimize Production of Chemicals

• HVGO Excellent Lubes or Cracker Feedstock

Hydroprocessing

• Feed Flexibility

• Cracking Severity Determined by Propylene to Ethylene (P/E) Ratio

Mixed Feed Steam Cracker

• Monetize valuable Co-products such as Butadiene, Paraxylene, BTX

• Olefins Conversion Technology maximizes C2-C3-C4 Product flexibility

Co-Product Selectivity


Hydroprocessing Pivot Point

Miracle of Hydrogen Addition

Effectively prepares Feed to


in terms of Feed Flexibility,

Conversion, and Yield

Jet

Diesel

ISO

CRACKER

LC-Fining / LC-

Max / LC-Slurry

VGO

Hydroprocessing

Resid

H2

H2

LPG

Naphtha

Diesel

HVGO

ULSFO


Upgrading the Bottom of the Barrel

Catalyst and Reactor

configurations determine

range of conversion

Outlet for Py-Oil

upgrading from Steam

Cracker



Liquid

Heaters

Process Features

SRT ® Pyrolysis Furnace Module

High Yield

Long Run Length

Optimized CAPEX / OPEX

Low Pressure Design vs Conventional Plants

Multi Component Refrigeration

Reduced Compressor Casings and Equipment Count

Gasoline

and Heavies

Removal

Gas

Heaters

CompressionRecovery &

Purification


Mixed Feed Steam Cracker Profit Pivot Points

0

50

100

Wt.

%

Feed Flexibility Typical Pyrolysis Yields(High Value Chemicals)

Ethylene Propylene Butadiene BTX

*P/E Ratio defined as

Propylene / Ethylene Ratio

Cracking Severity

Cracking Severity High Low

P/E Ratio 0.45 0.65

Energy / kg Ethylene Base + 16%

Feed Rate Base + 14%

Ethylene Production Base Base

Propylene Production Base + 46%


Co-Product Profit Pivot Point

Steam

Cracker

UnitSat’d C4s

Hydrogen

Fuel Gas

Ethylene

Propylene

Mixed C4s

C5-C8 Pygas Pygas

HT

Total Hydro

Sat’d C5-C8

NaphthaSat’d C4s

PP Unit

PE UnitPolyethylene

Polypropylene


Co-Product Profit Pivot Point C4 Train (Optimized)

Steam

Cracker

Unit

Butadiene

Extraction

MTBE / HP IB

Unit

1,3-Butadiene

Butene-1

i-Butane to Alky

MTBE

Butene-1

Raff-1

Raff-2

Raff-3

EthylenePropylene

Mixed

C4s

n-Butane

Raff-3 to Alky

C5s

Olefins

Conversion

Technology

IsobutyleneMethanol


Co-Product Profit Pivot Point Pygas (Optimized)

Steam

Cracker Unit

Stage 1 Pygas

Hydrotreating

C5s to Cracker

C5+

Pygas

Stage 2 Pygas

Hydrotreating

Pygas

BTX

Paraxylene

Benzene

Paraxylene

Propylene Aromatics

Styrene

C6-C8

to OCT

Ethylene

Cumene


Profit Pivot Points: Putting it all together

Co-

Product

Block

Mixed

Feed

Steam

Cracker

Unit

Atm

Tower

Arab

Light

Crude

LPG

Jet

Diesel

Resid

ISO

CRACKER

Naphtha

Ethylene

Propylene

Mixed

C4s

HVGO

C5+

Pygas

Hydrogen

Vac

Tower

VGO

Diesel

PGO

Hydro

processing

Naphtha

Py-Oil

ULSFOLC-Fining / LC-

Slurry

Benzene

Xylenes

Butene-1

Butadiene


Case Study – Refinery / Petrochemicals Integration

Case 1 2 3 4 5

Reside Upgrading No LC-FINING LC-FINING LC-FINING LC-SLURRY

Fuels Production No No Yes Yes Yes

Fuel Oil Type 3% HSFO 1% LSFO 1% LSFO 1% LSFO 0.1% ULSFO

Additional Processing

Crude (Arab Light), BPD 195,000 162,000 227,000 400,000 246,515

Ethylene, KTA 2,000 2,000 2,000 4,000 2,000

Propylene, KTA 1,480 1,493 1,469 2,805 1,489

Butadiene, KTA 357 357 347 774 326

Euro VI Diesel, BPD 0 0 74,500 94,265 106,000

Fuel Oil, BPD 54,000 25,000 20,000 36,935 8,500

Anode Coke, KTA

Chemical Yield on Crude, % 58% 70% 49% 57% 45%

% IRR Base +7.8% +9.8% +18.4% +10.4%Notes

1. All cases includes Hydrocracker + Olefins Conversion Technology

2. All cases produce MTBE, Butene-1, Benzene, Xylenes

3. 3% HSFO priced at $21/Bbl less than crude


Crude to Chemicals: A Disruptive Technology

Source: Saudi Aramco Presentation

At Baker Hughes (GE) 2018

Annual Meeting, Mr. Abdulaziz Al-Judaimi


Conclusion

Focus on integration of refinery and

Petrochemicals Units

Rapid Petrochemicals Demand Provides

Opportunities for Refiners to shift to

Chemicals

Profit Pivot Points will allow producers to

pivot to meet changing market demands:

Hydrocracker


Co-Product Management

Source: EIA and Global Data

Technology solutions exist

to upgrade refined products

to valuable petrochemicals

Refinery Pivot Points in a Refinery Petrochemical ...

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