UOP Olefins Seminar; OLEFLEX PROCESS · No large, hotisolation valves Smallestplot space...
Transcript of UOP Olefins Seminar; OLEFLEX PROCESS · No large, hotisolation valves Smallestplot space...
© 2016 UOP Ltd. A Honeywell Company All rights reserved. UOP 7200-0
The Key to Achieving High Returns for Propane Upgrading
OLEFLEXTM PROCESS
UOP Limited – Kevin WhiteheadDecember 2016
UOP Olefins Seminar; Efficient Monetization of
Natural Gas and LPG
© 2016 UOP Ltd. A Honeywell Company All rights reserved.
Contents
• Market fundamentals provide an attractive opportunity to upgrade propane to propylene
• Oleflex Process – the optimum route to produce high value olefins
• Why do customers choose the Oleflex Process?
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Propylene Market Remains Very Attractive
On purpose propylene technologies key to growth
• On a global basis, propylene markets are healthy–Demand growth, 4.5%–Current utilization ~82%–Demand growth begins to exceed capacity gains by 2019
• Steam cracking and refining generate the majority of propylene supply
• Increase in light cracker feedstocks reduces C3= from steam crackers
• On-purpose technology has grown rapidly and now has a significant share of the market (~20%)
• Natural Gas Liquids offer profitable route to on-purpose propylene Source: Independent Analysis
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Demand (4.0/4.1) Total Capacity (4.1/3.9) Operating Rate
World: PG/CG Propylene Supply & Demand
Source: IHS © 2015 IHS(% AAGR = 10-15/15-25)
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World: PG/CG Propylene Production By Technology
Source: IHS © 2015 IHS(% AAGR = 10-15/15-25)
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Spread, $/M
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$/MT
Source: IHS
Propane Propylene Price Spread
C3=/C3 Pricing Differential Creates Value
• Propylene commands an attractive premium over propane• Consistent financial incentive to upgrade propane• Cost position of Iran is ideal
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C3=/C3 spread remains attractive over time
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Create High Value Propylene direct from Propane with the Oleflex Process
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Propane Propylene
Feedstock Products Uses
H2
Oleflex ProcessPropane Dehydrogenation (PDH)
High Performance Plastic
Fibers
Packaging
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C3 Oleflex Complex
C3 Oleflex Process used for 67% of operating PDH units
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OleflexProcess
C3 LPG
C4+
By-product H2
C2-
Propylene
SHP
Propylene –Propane Splitter
Deethanizer
Depropanizer
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Leverage UOP CCR Experience in PDH6
Heater Cells
Net Hydrogen
To FracSection
Dryer
Cold Box
Fresh& Recycle
Feed
H2 Recycle
CCR
Rx EffluentCompressor
Regeneration Section
Reactor Section
Product Recovery Section
Catalyst Flow
289 UOP CCR’s in Operation Today
289 UOP CCR’s in Operation Today
289 UOP CCR’s in Operation Today
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Why Customers Choose UOP OleflexLowest Overall Cost of Production
Smaller Investment Required
One design gives lowest Capex and Opex
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Low feed consumption Lowest MT C3 / MT C3=Highest carbon efficiency <10% of competitor coke make
2wt% higher hydrocarbon yieldLowest energy usage <80% of competitor energy use
High efficiency product recovery, distillation & heat pump designLess compression
Lowest number of reactors 4 reactorsLow cost design No O2 plant required, no idle equipment
No large, hot isolation valvesSmallest plot space Minimizes bulks costOperates at low positive pressure Lower cost design than vacuum
Efficient continuous regeneration Smaller equipment required
Constant equipment count Best economy of scale
© 2016 UOP Ltd. A Honeywell Company All rights reserved.
Why Customers Choose UOP Oleflex (2)High Reliability / On-stream Availability
Smallest Environmental Footprint
Safest & most environmentally friendly technology
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Start of Run performance for the whole operating cycle
Continuous on-line regenerationmaintains yield over cycle
Proven regeneration technology 289 CCRs operating>100 CCRs in design/construction
More days on stream Catalyst can be changed withoutshutdown
Lowest CO2 emissions Lowest energy consumptionLow NOx & VOC emissions Low energy consumption and
efficient low pressure designNon-toxic catalyst system Pt active metal
© 2016 UOP Ltd. A Honeywell Company All rights reserved.
UOP Leads the Way in Dehydrogenation
• 8 repeat customers with two or more units• 3 customers who already have a competitor iC4 unit selected UOP for
their PDH project• 2 Oleflex units announced in Europe in 2016
Oleflex Process is a proven investment. UOP is the market leader
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C3 Dehydro iC4 Dehydro C3/C4 Dehydro
Ole
fin C
apac
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MTA
Licensed, in Design or ConstructionOperating
16Units
14Units
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3Units
UOP has been awarded 80% (36 of 45) of dehydrogenation
projects competitively bid since 2011
UOP has been awarded 80% (36 of 45) of dehydrogenation
projects competitively bid since 2011
© 2016 UOP Ltd. A Honeywell Company All rights reserved.
Technology Development Continues12
Significant R&D investment and Oleflex licensee interaction will continue to drive future innovation
1990 - 1995 1996- 2000 2001 - 2005 2011 – 20162006 - 2010
PDH/BDH Commercialized• UOP 1st to Market• 105 kmta C3= design• 425 kmta iC4= design• DeH-6
Key Advancements• DeH-8 & DeH-10• 165 kmta C3= design• 80/200 kmta C3=/iC4= design• Hot Residence Time
Reductions
Key Advancements• DeH-12 • 250-350 kmta C3=
design• MD Trays for
DeC3/DeC2
Key Advancements• DeH-14• 400-460 kmta C3= design• PP Splitter Energy Reduction• Fired Heater Optimization• Contact Cooler (C4)
Key Advancements• DeH-16• 510 kmta C3= design• New Reactor Internals• Online Solvent Wash (C3)• CCR Advancements
Key Advancements• Next Gen DeH catalyst • Larger Capacity C3= designs• Next Generation CCR• Yield Enhancements• Latest Energy Optimization• HPS Automation Package• C4 and C3/C4 Design Modernized
© 2016 UOP Ltd. A Honeywell Company All rights reserved.
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Spread, $/M
T
$/MT
Source: IHS
Propane Propylene Price Spread
C3 Oleflex Profitability – Resilient to Price Volatility13
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© 2016 UOP Ltd. A Honeywell Company All rights reserved.
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Spread, $/M
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$/MT
Source: IHS
Propane Propylene Price Spread
C3 Oleflex Profitability – Resilient to Price Volatility
Propylene-Propane spread remains attractive even with volatility in feed and product pricing
Price spread is forecast to return to levels similar to 2007-14 by 2019
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High
Typical
Low
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C3 Oleflex- Profitable and Resilient to Price Volatility15
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Basis: 600 KMTA Oleflex, Propane priced at 630 $/MT, NE Asia Pricing, 100% equity
Attractive ROI across range of price spreads
Oleflex technology delivers high ROI even when prices are low
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C3/C3= Spread ($/MT)
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C3 Oleflex- Profitable and Resilient to Price Volatility16
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Basis: 600 KMTA Oleflex, Propane priced at 630 $/MT, NE Asia Pricing, 100% equity
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C3/C3= Spread ($/MT)
Oleflex technology delivers high ROI even when prices are low
Cost-advantaged propane provides potential for even higher return
© 2016 UOP Ltd. A Honeywell Company All rights reserved.
Summary
• Market fundamentals support attractive C3 upgrading projects- Propylene-Propane spread forecast to remain strong
• Oleflex process offers the optimum route from C3 to C3=- Lowest overall cost of production- Low capital cost- High on-stream availability- Proven technology with 14 operating C3 Oleflex units- Selected for 36 (80%) of the 45 dehydrogenation units competitively
bid since 2011• Economics of a PDH complex using the Oleflex Process are
compelling- Strong return on investment that is resilient to pricing volatility
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