dan cooperberg alternate technology abb lummus … to gasoline pool kero/jet diesel oil c 3’s to...
TRANSCRIPT
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Alternate technologyoptions forprocessing refineryresidues
Dan CooperbergABB Lummus Global
Gasification TechnologyConference
October 8, 2001
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Refinery product trends
Need to produce cleaner productsGasoline – Euro 3/Euro 4 specificationsDiesel – Euro 3/Euro 4 specificationsRefinery fuel – Lower sulfur
Significant reduction in high sulfur fuel oil demandReduce HSFO productionSubstitute LSFO for HSFO
Limited availability of low sulfur light crudesResult:
Investment in refinery residue processing needed
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Crude Oil
VacResid
VIS.DS LGO
VBResid
LPG
To Gasoline Pool
Kero/Jet
Diesel OilC3’s
To Gasoline Pool
MTBE
CrudeUnit
Stabilizer
CAT - CrackerComplex
VacuumUnit
Fuel Oil
(A) Euro IV Quality AsphaltAsphalt
Kerosine
Gas Plant
Reformer
AlkylationiC4
Alkylate
DS LGO
N-HDS
K-HDS
LT. G.O. D-HDS (A)
H2 Rich Gas
LCOHCOto
D-HDS
MTBE
Gas Plant
MethanolC4’s
Lt. Naphtha to Gasoline
VBLGO
Figure 1 - Base case refinery
HDSVGO Pretreater
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Option BASE Crude Type Arab Light
UNITS (kBPSD) (a)
Crude Unit 150Vacuum Unit 65Naphtha HDS 38Distillate HDS 33Cat. Reformer (b) 26Cat Cracker(FCCU) 44Visbreaker 20 VGO HDT 44Gasoline HDT 30
(a) Typical Refinery has capacities as shown based on AL design basis(b) Merox Units, as well as Isomerization, MTBE and alkylation Units are also included
Base case unit capacities(150,000 bpsd or 20,000 mt/d )
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Factors to considerResidue upgrading options
Existing refinery configurationCapacityCrude slateDegree of residue conversionDegree of VGO hydrotreating ( or hydroconversion )
Current product qualityGasolineDiesel
Future product specificationsFuture product requirements
Outlet for H.S.F.O.Need for powerExpansion requirements
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Key assumptions Producing EU clean products in 2005
Year Current 2005Gasoline Specifications
Unleaded Pool (Ron/Mon) 95/85 95/85Sulfur Spec, max. ppm 150 50Aromatics, vol. % max. 35 35Olefins, wt.% max. 18
Diesel SpecificationsSulfur, ppm. max. 350 50Cetane Index, min. 51 51Specific Gravity, max. 0.845
Fuel Oil ProductionDecrease H.S. Fuel Oil ProductFuel Oil Product, %S max. 1.0
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Option Base
Crude Type AL VGO Hydrodesulfurization Yes
Production ( MT/D) (a) C3 LPG/C3 Mix 570Gasoline (95/85) 8340Kero/Jet 2060LS Diesel 4300HSFO 3750Product QualityGasoline (ppm-s) 18Diesel (ppm-s) 36Diesel Cetane Number 56HFO (wt%S) 3.3
(a) Excludes 100 K-MTA of Bitumen
Base refinery operations - 20,000 mt/d( Minimal vacuum resid processing )
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Potential refinery options to evaluate
Define existing refinery configurationIdentify possible residue upgrading optionsIdentify potential crude availability ( e.g. in Europe )
Mid East blendsRussian crudes and feedstockslow sulfur ( North Sea , Africa )
Impact of crude and product pricing differentialsImpact of future power pricingImpact of financing conditions
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Option Configuration Residue Products
Base(a) Typical Existing Refinery 3.5%S Fuel Oil
1 LC-FiningSM unit @ 65% Conversion 1.0%S Fuel Oil
2 Delayed Coker 6%S Fuel Coke
3 Delayed Coker & POX 200 MW Power (b)
4 Deasphalting & POX 500 MW Power (b)
5 Visbreaking/Vac Flash/POX 630 MW Power (b)
(a) Uses Arab Light with VGO hydrotreating
(b) Includes hydrogen generation, Net Power Output includes refinery requirements
Basis: 150,000 bbl/d crude feedResidue upgrading comparison
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Residue processing options to consider (part 1)
Add LC-Fining unitEliminates production of HSFOCan be used to process wide variety of crudesOffers product slate flexibility
Add delayed coker complexComplete conversion of vacuum residuerequires coke dispositionrequires gas oil hydroconversion treatment
Add coke based IGCC for power / steam generation
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Residue processing options to consider (part 2)
Increase visbreaker conversion & install IGCCAdd vac.flasher or VF with added heaterEliminates production of HFOrequires ability to sell excess powerIGCC can be built and owned by others
Add SDA unit & install IGCC unitEliminates production of HFOrequires ability to sell excess powerIGCC can be built and owned by others
Install hydrocrackerSuitable for processing thermal and conversion gas oilsOffers good crude flexibility
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Option 1 - LC-Fining upgrading
Vacuum Unit VGO HDS
HydrogenPlant
D-HDSUnit
FCCU
AsphaltPlant
LC-Fining65%
Conversion
Atmos.Resid
VacuumResid
Asphalt
1% S Fuel Oil
DSGas Oil
HydrogenNatural
Fuel Gas
VGO
VGOHCO (A)
Distillate
HDS LCO
LCO
Resid
To Naphtha
(A)
(A) Diluent
New
Revamped
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Option 2 - Delayed coking
VGO/HCGOFHC
HydrogenPlant
LCO/LGOHDT
FCCU
AsphaltPlant
DelayedCoking
VGO
Atmos.Resid
VacuumResid
Asphalt
Fuel Coke to Sale
DSGas Oil
HydrogenFuel Gas
VGO
HCGO
Light Naphtha to FCC
LCGO
Heavy Naphtha
LCO
HCO toRefinery Fuelor Sales
HCGO To VGO/HCGOMHC
VGOHDS
Vacuum Unit
New
Revamped
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VGO/HGOFHC
LCO/LGOHDT
FCCU
AsphaltPlant
DelayedCoking
LVGO
Atmos.Resid
VacuumResid
Asphalt
H2S to SulfurRecovery
DSGas Oil
HVGO
LGO
Heavy Naphtha
LCO
HCO toRefinery Fuelor Sales
Gasification& Acid Gas
Removal
HydrogenRecovery
Cogeneration& Power Gen
FuelGas
Hydrogen
Steam
Power
MediumBTU Gas
Coke
Option 3 - Delayed coking + IGCC
VGOHDS
HCGO
To VGO/HCGO MHC
LN to FCC
Vacuum Unit
New
Revamped
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VGO/DAOFHC
D - HDS
FCCU
AsphaltPlant
Deasphalting~50% Lift
VGO
Atmos.Resid
VacuumResid
Asphalt
H2S to SulfurRecovery
DSGas Oil
VGO
DAO
LCO
HCO toRefinery Fuelor Sales
Gasification& Acid Gas
Removal
Hydrogen Recovery
Cogeneration& Power Gen
FuelGas
Hydrogen
Steam
Power
MediumBTU Gas
Pitch
Option 4 - Deasphalting + IGCC
VGOHDS
Refinery Fuelor Sales
Vacuum Unit
New
Revamped
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VGOHDS
D - HDS
FCCU
AsphaltPlant
VGO
Atoms.Resid
VacuumResid
Asphalt
H2S to SulfurRecovery
DSGas Oil
VGO
Naphtha to FCC
VB VGO
LCO
HCO toRefinery Fuelor Sales
Gasification& Acid Gas
Removal
Hydrogen Recovery
Cogeneration& Power Gen
FuelGas
Hydrogen
Steam
Power
MediumBTU Gas
Tar
Option 5 - Visbreaking/vacuum flasher + IGCC
Visbreakingwith Vacuum
FlasherAdded
VB VGO
VBGO
Vacuum Unit
New
Revamped
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Residue processing options
NaphthaInject into FCCU riserProcess in naphtha HDS (>50 bar)
Light gas oilNeeds hydrotreating (~75 bar) to saturate aromatics
Heavy gas oilNeeds to hydrotreat (>75 bar) or hydrocrack
CokeSalePower generation via IGCC
(Coker effluent processing )
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Residue processing options
NaphthaInject into FCCU riserProcess in naphtha HDS (>50 bar)
Light gas oilNeeds hydrotreating (~75 bar) to saturate aromatics
Heavy gas oilNeeds to hydrotreat (>75 bar) or hydrocrack
TarPower generation
(Visbreaking/vacuum flash effluent processing )
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Material balance comparison (20,000 mt/d )
MATERIAL BALANCE COMPARISON
( MT / D )
Option Base 1 2 3 4 5
DESCRIPTION Base LCFINER Delayed Coker + SDA + VB with FlasherCase (65 %) Coker IGCC IGCC & IGCC
Crude Split 100/0 0/100 0/100 0/100 0/100 0/100Long Resid Import ( 25,000 b/d) Y Y YProduction MT/D
C3 LPG 143 174 201 201 185 166Propane/Propylene Mix 426 476 394 394 450 49695/85 Gasoline 8,343 8,542 8,683 8,683 8,453 8,542Kero/Jet 2,061 1,711 1,466 1,466 1,567 1,567LS Diesel 4,295 4,405 9,260 9,292 8,298 4,402#2 Heating Oil 0 711 393 435 394 8103.5% S Fuel Oil 3,751 0 0 0 0 01.0% S Fuel Oil 0 3,473 0 0 0 0Asphalt Plant Feed 290 290 290 290 290 290coke 0 0 2,345 0 0 0sulfur 214 520 521 678 674 538
Total liquid/Solid Product 19,522 20,302 23,553 21,439 20,310 16,811
Power Import, MW (a) 37,724 49,973 50,004 -195,335 -498,367 -633,637
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(Includes 30% allowance for offsites)Investment costs $MM - Basis: N.W. Europe 2001
Delta InvestmentOption Configuration MM $
Base Base Refinery with Visbreaker Existing Facility
1 LC Finer @ 65% Conversion 361
2 a Delayed Coker 456
3 a Delayed Coker with IGCC 743
4 a Solvent Deasphalting & Gasification (IGCC) 865
5 Visbreaking with Vac. Flasher and Gasification (IGCC) 759
Note: a) Includes processing of 25,000 bpsd of long residue
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Prices used in study5 Year Average 1995 - 1999 @ Rotterdam
FEEDS $ / MT
Arabian Light 125.42$ Arabian Heavy 112.00$ Natural Gas 125.00$ n-Butane 265.20$ MTBE 271.50$ Methanol 160.00$
PRODUCTS $ / MT
C3 LPG 167.00$ Propane/Propylene Mix 260.00$ C4 LPG 160.00$ 95/85 Regular Unleaded 184.67$ Jet / Kerosene 180.51$ L.S. Diesel 165.88$ Gas Oil ( No. 2 Fuel Oil ) 160.64$ L.S. Fuel Oil ( 1 - 1.4 % ) 99.50$ H.S. Fuel Oil ( 3.5 % max. ) 90.60$ H.S. Fuel Coke 10.00$ Carbon Black Feed 104.50$ Bitumen Feed 88.00$ Sulfur 65.00$
Power 35$ - 50$ / MW-Hr
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Cash flow calculations
Project life 20 yearsDepreciation 10 years (straight line)Interest (a) 7% per yearDebt/equity 75/25Loan payback 7 years + 3 years grace periodTax rate 35%Salvage value 10% of original cost
Product/crude pricing 5 year average (1995-1999)(b)(a) Base rate + premium and swap fees(b) Rotterdam location
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Study - 1A: IRR vs power tariff (1995-1999 Prices )
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$35 $40 $45 $50 $55Power Tariff ( $/MWH )
IRR
( % )
LC-Fining Coker Coker/IGCC
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Debt/equity @ 75/25
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Prices used in study2.5 Year Average 1999 - 2001 @ Rotterdam
FEEDS $ / MT
Arabian Light 165.40$ Arabian Heavy 151.60$ Natural Gas 151.00$ n-Butane 265.20$ MTBE 381.00$ Methanol 160.00$
PRODUCTS $ / MT
C3 LPG 240.00$ Propane/Propylene Mix 380.00$ C4 LPG 233.00$ 95/85 Regular Unleaded 275.00$ Jet / Kerosene 272.50$ L.S. Diesel 255.00$ Gas Oil ( No. 2 Fuel Oil ) 234.00$ L.S. Fuel Oil ( 1 - 1.4 % ) 138.60$ H.S. Fuel Oil ( 3.5 % max. ) 126.00$ H.S. Fuel Coke 10.00$ Carbon Black Feed 143.60$ Bitumen Feed 123.40$ Sulfur 65.00$
Power 35$ - 50$ / MW-Hr
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10152025303540
$35 $40 $45 $50 $55Power Tariff ( $/MWH )
IRR
( %
)
LC Fining Coking Coker/IGCC
���������������������� SDA/IGCC Vis./VF/IGCC
Study - 1b: IRR vs power tariff (1999-2001 Prices )Debt/equity @ 75/25
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18
20
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24
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$35 $40 $45 50 55Power Tariff ( $/MWH )
IRR
( % )
Coke(10/mt)
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coke(20/mt) Coke (30/mt) Coker/IGCC
Study - 1c: IRR vs power tariff (Coke price sensitivity)Debt/equity @ 75/25
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General conclusions
Elimination of H.S. F.O. will require significant refineryinvestment.Thermal upgrading processes will require addition of VGOHydroconversionWith addition of residue conversion processes refinersshould examine viability of long residue import
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General conclusions (part 2)
IGCC options competitive with non IGCC options.IGCC options more competitive when refinery grossmargins are low. ( 1995 -1999 price basis )Power co-production, provides a more stable clean productrevenue stream.If refineries have existing hydrocracker units, thermalprocessing options with power generation will haveimproved rates of returnIGCC projects allow refiners to explore added financingoptions with potential investors in the IGCC unit or residueconversion facilities