4 integrated refinery-cracker the new paradigm -- fluor

8/13/2019 4 Integrated Refinery-Cracker the New Paradigm -- Fluor

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1Copyright 2010 Fluor Corporation

Integrated Refinery-CrackerThe New Paradigm

Osman Aboul-Nasr, PhD

FluorGreenville, SC. USA

AIChE Annual Spring Meeting

San Antonio, TX, March21-25, 201013th Topical on Refinery Processing. Paper 148b

Fluor makes no representation or warranty, expressed or implied, as to the accuracy or completeness of theinformation contained herein and nothing contained herein is, or shall be relied upon as a promise or representation tobe used in connection with any proxy, proxy statement, proxy soliciting materials, prospectus, Securities RegistrationStatement or similar document without the express written consent of Fluor, except as may be required by law.


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Fluor Overview

One of the worlds largest publiclyowned engineering, procurement,construction and maintenance

companies2008 revenue of $22.3 billion2008 new awards: $25.1 billion2008 backlog: $33.2 billionMore than 46,000 employeesworldwideOffices in more than 25 countriesFluors safety performance recordconsistently makes it one of theworlds safest contractorsNearly 100 years of experience


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Fluors Locations


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Comprehensive ServicesProgram/Project Management


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The Solar SystemRefinery and Petrochemicals


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The Big PictureCommodity/Intermediates/Derivatives Speciality/End Use ProductsRefinery Products

AdditionalPetrochemical

Feedstock

Natural GasButanesPentanesNaphthaAromatic StreamsResid Oil

Mo Gas, KeroseneATKDiesel HS

Bitumen

CokeSulfur

EGO CGOFuel Oil VGOGas Oil H OilWash Oil

PetrochemicalFeedstock

LPGEthanePropylene

Naphtha

Fuel Gas

ButadieneButenesMTBE

EB/SMCyclohexaneAdipic AcidCumene/Phenol/BPACaprolactamXylenesPTAIPAMDI/TDI

PolyethyleneEthylene GlycolEthylene OxideLinear Alpha-OlefinsEDC/VCM/PVCVAMAcetic Acid

MethanolEthanolAcetic AcidAmmoniaUreaNitric Acid

PolypropylenePropylene OxidePolyolsOxy-AlcoholsACNHMDAMethyl MethacrylateAcrylic Acid/Esters

PolyacetalsFormaldehydeFertilizersAmino AcidsUrea-Formaldehyde

x

PET Resins and

FibersDetergent AdditivesPolyvinyl acetate/alcoholEthoxylatesAutomoitve Applications

PolyurethanesAcrylic FibersCarbon FibersPaintsFlooringFurniture

StyrenicsNylon-66Nylon-6PolyestersAdhesivesPlasticizersPolyurethanesAniline

RubbersMaleic AnhydrideSBR ResinsButanediol-THF


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The Old ParadigmMolecule Exchange

Light/Heavy NaphthaFCC Propylene

Dry GasLight Ends UCO

Hydrogen LPGC4 C5/C7

Toluene C9+AromaticsPyGas Fuel Oil


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THE NEW PARADIGM

Why the Union


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The New Paradigm

Not Just Molecules

Not Just Neighbors

But members of the same corporate family


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The Links that Bind

Backward and forward integration

Less volatile feedstock supply

More secure outlet for products

Take advantage of local and global flexibility within thecorporation

Dampen price cycles


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Its All about Money

Shared utilities systems Lower investment

Less variable costCommon storage Significant capital cost savings Lower working capital

Lower transportation cost


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More Synergy

Integrated presents opportunities for savings Low grade heat

Waste stream neutralization Fuel

Centralized common services Maintenance Engineering SHE


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A Shot-Gun Wedding?

A response to market demand Lean, mean and GREEN!

Lower gasoline consumption growthTighter ethane supplies

Higher demand for polymer-grade propylene

Higher demand for aromatics


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Planned Integration

Mega Refineries / Petrochemical Complexes Petro-Rabigh, Rabigh, Saudi Arabia

Ras Tanura, Jubail, Saudi Arabia Aramco, Jazan , Saudi Arabia Al Zour, Kuwait Formosa Plastics, Mai Liao, Taiwan Reliance, Jamnagar, India Others?


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THE CHALLENGES

Mars and Venus


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Logistics

Different philosophies; manageable differences

Pre-investment philosophy

Footprint philosophy Petrochemicals are generally more compact Refineries are more spacious

Safety firstWaste streams and emissions Refinery waste streams more benign Petrochemicals have experience handling their streams


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Operation

Complexity of refinery operation Seasonal

Feedstock dependent Entire refinery is one big unit

Crackers may have flywheel products

PONA in ppm outCracker by-products are harder to handle But not impossible

How big is a barrel?


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Business Aspects

Transfer prices

Business cycles may squeeze one product or the other

Petrochemicals usually operate on slimmer margins

Multiple JV partners

Financing

Schedule Manpower Equipment delivery

Unforeseen market swings On Stream sequencing


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Or Wedding Planner

AKA Consultant

Critical to successful integration

Must have diverse capabilities

A single Master Plan

Manage organization

Predict, evaluate and mitigate execution risk


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Questions?(Or forever hold your peace!)

4 integrated refinery-cracker the new paradigm -- fluor

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