SK’s Lube Base Oil Production - Successful Completion of 2 ...

SK’s Lube Base Oil Production- Successful Completion of 2nd LBO Project

Sook-Hyung (Sam) Kwon

Vice President & Project Director

Byeong-Yong Park

Process Manager

G050060 Template4HydroSympo

2

Overview of SK Corporation

Establishment October 1962

Asset 14.9 Billion US$ (2004)

Employees 4950 Persons

Sales 17.4 Billion US$ (2004)

Business

Areas

Oil Exploration & Production

Petroleum Refining

Chemicals

Gas, Coal, Lubricants

Technology Business

New Business ( Online / Offline )

SK Corp’s highly

integrated Ulsan

Complex is one of

the largest

single-site refinery

in the world, having

refining capacity of

840,000 bpsd.


3

History of SK’s Lube Base Oil Production

#1 LBO Plant

• 1995: Commissioned #1 LBO Plant, Hydroprocessing-based, Conventional MLDWincluded SK UCO Lube Process Technology

• 1997: Revamped to ISODEWAXING/HydrofinishingUnit with ICR 408/407, Better Yield and Quality

• 2003: Applied New ISODEWAXING Catalyst of ICR 422, Better Yield and Quality

CDW ICR 408 ICR 422

Yield, LV % Base +20 +23

Viscosity Index Base +10 +12


4

History of SK’s Lube Base Oil Production

#2 LBO Plant

• 2004: Commissioned #2 LBO Plant, Hydroprocessing-based, included SK UCO Lube Technology

• 2004: Increased Throughput by 20%

• 2005~6: Planned to Revamp


5

Application of Two LBO Plants

LPG

Naphtha

Diesel

Kerosene

Vac.

Distill

Fuels

HCK

#1 CDWVac.

Distill

#2 CDW

UCO

Vac.Distill

70D

100D

150D

70D

100D

150D

250D

Yubase

3,4,6,8

AR

VGO

#2 LBO Plant


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Overview of 2nd LBO Project

Project Period August, 2002~ June, 2004(23 months)

Mechanical Completion : May 20, 2004

100% Operation : June 29,2004

Capital Investment US$ 120 Million

Vac. Distillation Unit

Catalytic Dewaxing Unit

Utilities and Offsite & Tankage

Project Target Fast-Track Schedule

Quality and Safety

Cost Saving


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2nd LBO Project

• Fast Track Schedule

– Involvement of Experienced Process Engineers from Planning to Start-up

– Speedy Decision Making based on SK’s Accumulated Technology and Experience

– Early Freezing of Process & Basic Engineering

– Early Purchasing of Long-Delivery Equipment

– Utilization of 3D Model Design

– Optimization of Precom. & Commissioning Activities

– Dramatic Savings of Document Approval Period


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• Quality and Safety

– Reflected Experienced Data and Procedure of 1st LBO Project in Design, Procurement, Construction, and Start-up Operation

– Audited Major Engineering Design Results by 3rd Party

– Crosschecked Design Quality between CDW Licensor and Basic Engineering Co.

– Dispatched Resident Experts to Manufacturing Shop of Major Equipment Vendors

– Strengthened Safety Mind and Behavior through Periodic Safety Committee

– Double Checked High Pressure Welding Qualities

2nd LBO Project


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2nd LBO Project

• Cost Saving

– Minimized Spare Parts and Bump Factor by 3D Model Design and SK’s Experience

– Minimized Trial and Errors from #1 LBO Experience

– Optimized Design by Removing Unnecessary Items

– Optimized Precom. & Commissioning Activities

– Purchased Major Equipment Economically


10

Start-up Performance

Description Planned Actual

Throughput, B/D 7,000 7,000

Reactor Temperature, Deg. C

- Isodewaxing

- Hydrofinishing

350

232

360

232

Lube Product Yield, % Base +2.0

Product Quality

- Viscosity Index Base Base +1

Any Bottlenecked Items

- Towers- Heaters and H-exchangers- Rotating Machine- Utilities

None


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Summary of 2nd LBO Project

Description Planned Actual

Fast-Track Schedule

EPC Schedule, months

Commissioning and Start-up, months

26

3

21.7

1.3

Quality and Safety

Number of Accidents Consecutive No Accidents Recorded, MH

-

-

None

2,950,000

Cost

Cost Saving, % of TIC 5 22

Capacity, B/D * 7,000 8,400

Product Yield and Quality Base Better

* Feed rate was increased within one month after start-up.


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• Design Review

– CLG reviewed all important design documents related to the IDW unit.

– CLG assisted conformity check of equipment and plant.

• Catalyst Selection

– SK and CLG did joint testing for catalyst selection .

• Start-up Assistance

– CLG supported technical services for start-up.

Success through Partnership with CLG


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Pictures of #1 & #2 LBO Plants


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• SK challenges CLG to improve lube quality/yield further by developing next-generation ISODEWAXING and ISOFINISHING catalysts.

• SK/CLG’s driving forces to improve lube qualities are now extending to the Hydrocracking catalysts.

• SK/CLG collaborate on validation of new technology and ideas in Hydroprocessing chain related to lube base oil production.

Future Partnership with CLG


15

THANK YOU

THANK YOU

THANK YOU

SK’s Lube Base Oil Production - Successful Completion of 2 ...

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