Axens Consulting Services Upgrading Refinery to Achieve New

Product Specifications and to Minimize the Residue

Payam Heidararabi

2 2 2

Introduction of Axens Consulting Services

Case study

• Background and Objectives

• Solution developed by Axens

• Economic Evaluation

Conclusion

Agenda

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

3 3 3

Operational Organization

Consulting

Services

Software Services

Production

Technical Proposals

Sales

Assistance to

Customer

Process Design

Technical Proposals

Sales

Associated

Technical Services

CEO

Executive Committee

9 Subsidiaries

Catalysts &

Adsorbents

Business Units

Development of

new products and

technologies

Technology

Development &

Innovation

Support to the Business Units

Process

Licensing

Performance

Programs

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

4 4 4

Simulators

License Detailed

Engineering Construction

Asset and Operation

optimization

Products (Catalysts & Adsorbents BU)

Technologies (Process Licensing BU)

Consulting Services (Performance Programs BU)

Operations Support (all BU)

Outside Axens perimeter

Start-up & Follow-up

Assistance

Replacement

Load

Catalysts

First

Load

Catalysts

Tender and

technology

choice

Pre-Project

Studies Project Achievement Unit on-stream

Basic

Engineering

Technical

Consulting

Catalyst Management

Unit Revamping

Training / Web Training

Equipment Supply

Integrated Process Solution (IPS)

How Do We Operate?

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

5 5 5

1. How to take the right decision for expansion or upgrading to

cope with new market requirements?

2. How to boost performance of the units with advanced control

technologies?

3. How to optimize the margin to be more competitive?

Modern Refinery has Multiple Challenges…

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

6 6 6

Axens Consulting Services: Taking Right Investment Decision and Minimizing Risks

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

“I’m finding it difficult to take the right investment decision to meet new

specifications efficiently while maximizing the revenue”

Refinery management

7 7 7

Integrated Process

Solutions (IPS)

Major

Revamping

Existing

Facilities

Grassroots

Facilities

Project

Execution

Asset & Operation

Optimization

Configuration

Development

With Process

Design Package

Specific Studies

Studies

Operational Support

Capacity Creep

Web-based Process

Operation Simulators

webPOS™

Advanced Process

Control

Linear Programming

Model Management

Crude Management

CO2 Mitigation and

Monetization

Support for Project

Financing

Executive Consulting

Services

Due Diligence

Assessment

Energy Efficiency

Oil Loss

Improvement Margin

Solutions

Supply and Product

Chain Optimization

Market Study

Site Location Study

Pre-environmental

Impact Assessment

Petroleum Terminal

Study

Marine Study

Feasibility Study

(FS)

Conceptual Engineering

Study (CES)

Pre-hazard Impact

Assessment

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

Integrated Process

Review (IPR)

8 8 8

Study Workflow

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

the Path to optimum investment decisions and maximum refinery profitability

Existing

site

with a

specific

production

pattern

Project

Financing

Basic Design

Detail

Engineering

Construction

Market review

Crude supply

Technologies

Financial analysis

Screening

LP

models

BFD, M&UB Units

capacity Pools Spec. Economics

Analysis,

ranking

Pre-Hazard & env

impact assesment

Utilities & off site

9 9 9

Introduction of Axens Consulting Services

Case study

• Background and Objectives

• Solution developed by Axens

• Economic Evaluation

Conclusion

Agenda

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

10 10 10

Axens has been consulted in 2012 to carry out a

study for improving quality of fuel while maximizing

the bottom conversion to valuable products

Main objectives of the upgrading project

• Comply with the latest specifications for diesel, gasoline, fuel

oil & asphalt

• Increase motor fuels & LPG production in order to minimize

the imports

• Upgrade vacuum residue

Background

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

11 11 11

Strong LPG demand

• Higher demand than domestic production

• Demand currently met by imports

Gasoline Specification

• About 75% of the Gasoline consumption is low-octane

Gasoline.

Noticeable Fuel Oil consumption mainly for Power

Generation

Market Overview

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

12 12 12

Gasoline

• Sulfur content reduction from 750/1000 to 10 wppm max

• Increase of RON (from 81/90 to 91/95)

• Aromatics content 35 vol% max & Olefins content 18 vol% max

• Stringent specification on Benzene content 0.6 vol% max

On-road Diesel

• Sulfur content reduction from 7000/500 (different grades) to 10 wppm max

• Polyaromatics 11 vol% max

• Increase of Cetane Index (from 45 to 52)

Fuel Oil

• Sulfur content reduction in order to comply with SO2 emission regulation

Transition toward New Specifications

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

13 13 13

Initial Refinery Configuration

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Gasoline

treatment

Fuel Oil

Visbreaker x 2

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG Washing

LN

HN

Kero

AT

x 2

14 14 14

Same crude as the one currently processed

Crude Characteristics

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

Properties Value

API gravity, °API 23.1

Specific Gravity @ 60°F 0.9153

Sulfur, %wt 1.54

Nitrogen, wt ppm 3 358

Kinematic viscosity @ 40°C, cSt 52.7

Conradson Carbon, %wt 10.0

Nickel, wt ppm 77

Vanadium, wt ppm 207

15 15 15

Introduction of Axens Consulting Services

Case Study

• Background and Objectives

• Solution developed by Axens

• Economic Evaluation

Conclusion

Agenda

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

16 16 16

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

Distillate: 176-350°C: To ensure

ASTM FBP temperature below

350°C

Vacuum Gasoil : 350-509°C

Vacuum Resid : 509°C+ to

ensure Asphalt specification

17 17 17

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit

Addition of an Ebullated

Bed Vacuum Resid HCK

in place of the existing

Visbreakers

LS: LPG Sweetening

CR: Catalytic Reforming

18 18 18

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

The VGO coming out

the Resid HCK will feed

a new HCK to increase

the overall conversion

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

19 19 19

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Decrease sulphur content

in oligomerisation unit

feed to 5 wppm

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

20 20 20

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

GO HDS

To be revamped with new

cut points to achieve

diesel specification

(10 wppm Sulphur)

21 21 21

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

22 22 22

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

CCR

23 23 23

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

CCR Addition of an

Oligomerization unit for a

high RON aromatic-free

cut from LPG

24 24 24

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

CCR

Desulfurization of FCC

Gasoline via HDT Unit &

replace the existing

gasoline sweetening

25 25 25

Developed Solution for Distillates and Bottom of the Barrel

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

AT

x 2

AR

VT

x 2

VR

VGO FCC

Jet

Diesel

LPG

Gasoline

Cracked

Naphtha

DO

Fuel Oil

Resid HCK

Crude

Oil

Bitumen

GO HDS

Kero

treatment

NHDS CCR

LN HDT ISOM

LPG

Treatment

LN

HN

Kero

Unconverted oil

HCK VGO

LS OLIGO

NHDS/ISOM/CR

Existing Unit

New Unit LS: LPG Sweetening

CR: Catalytic Reforming

CCR

Treatment of

Naphtha from Resid

HCK and HCK

26 26 26

Addition of an Hydrogen Production Unit to satisfy

Hydrogen consumption of HDT, VGO HCK and VR

HCK units

Addition of environmental dedicated units

• Amine Washing and Regeneration facilities

• Sour Water Stripper

• Sulfur Recovery Unit for H2S removal

Developed Solution Supporting and Auxiliary Units

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

27 27 27

5% 7%

35%

7%

26%

47%

30% 37%

3% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Product slate beforestudy

Products slate afterstudy

LPG

Gasoline/Naphtha

Distillates

Fuel

Asphalt

Refinery Product Slate after Study

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

Main Features of the

Selected Scheme

• Conversion level of the refinery

increased significantly

• Production of Euro V Gasoline

& Diesel and low sulphur fuel

oil.

28 28 28

Introduction of Axens Consulting Services

Case Study

• Background and Objectives of the Study

• Solution developed by Axens

• Economic Evaluation

Conclusion

Agenda

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

29 29 29

Project Capital Requirement

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

30 30 30

Introduction of Axens Consulting Services

Case Study

• Background and Objectives of the Study

• Solution developed by Axens

• Economic Evaluation

Conclusion

Agenda

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

31 31 31

The project reveals interesting opportunity in upgrading

the refinery to comply with new specifications

In addition to the main bottom upgrading process units,

the detail review of existing units, auxiliaries and

infrastructures is also important for decision making

Axens’ technology know-how combined with linear

programing tool and expertise in analysis of project

economic lead the study to the most feasible solution

Conclusion

Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry

32 32

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Axens’ Iran Seminar – 19-20 July 2016 – Paving the Way to a Highly Competitive Refining Industry