Download - Integration Synergies PResentation
Contribution to the work of the High Level Group for the European Commission by Total Raffinaderij Antwerpen, February 29th 2008
Synergies between Refining and Petrochemicals : Today and Tomorrow
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Synergies between Refining and Petrochemicals
Refining / Petrochemicals integration :§ Background
§Within the Total Group
§ The Antwerp example
New developments :§Market trends
§ Longer term strategy and developments
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Refining / Petrochemicals Integration
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Refining / Petrochemicals process links
Refinery
Condensate splitter
Distillates
Naphtha
Naphtha
Butane
Propylene
Butenes
Hydrogen
Steamcracker
Butadiene
Gasolines
Benzene fraction
C7 / C8 Aromatics Aromatics
Propylene
Ethylene
Benzene
Toluene
P-Xylene
O-Xylene
Fuel Gas, PFO
Py Gas
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Refining - Petrochemicals integration within TOTAL
TOTAL Refinery
TOTAL Petrochemicals Steamcracker
100 % third party Steamcracker
Port Arthur Antwerp
Lavera
Carling
Leuna
Vlissingen
Dunkirk
Gonfreville
Feyzin
Grandpuits
Donges
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Benefits of integration
Single site integration of refining and petrochemical capacity :§ Availability of product§Reduction in transport (costs and risks)§Working capital savings
§ Synergies from joint infrastructures and logistics§Reduction in variable costs (steam, utilities)§Size effect on support services: maintenance, HR, HSEQ management, F&A, etc.
Strategic advantage :§ Less recourse to trading market
§ Independence and supply security
§ Long-term exchanges
§ Common business and investment strategy
§ Commingled footprint of activities
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Consolidation of production for both sectors
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Chemicals percentage in Refining sales
Naphtha percentage from TOTAL refineries used as feedstock in TPA steamcrackers
1997
2001
3.1%
6.4 %
36 %
60 %
ð ð
ð
7.2 % 67 %
ð
2003
8
24%39%
74%90%
0%10%20%30%40%50%60%70%80%90%
100%
BP Shell Total Exxon Mobil*
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A common approach
2019
Level of integration between Refining and Petrochemicals in Europe
Source: Morgan Stanley (% of ethylene capacity integrated with refinery owned by same company)* Exxon Mobil including ethane and LPG steamcracker from Mosmorran
The Antwerp example
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Total in Antwerp
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Crude + condensate capacity 18 Mt/y
Staff (incl. NC3) 1,026§Shift Personnel 48 %§Contractors (outside Projects & TA) 450 m/d
EDCI (Solomon) Refinery 3.84 Mb/d
NC3 Naphtha throughput (in 2006) 1.4 Mt/y
Surface area 220 ha
Storage tanks & capacity 162 - 2.1 Mm3
31 process units - 1 central control room
Power station + cogeneration
Total Raffinaderij Antwerpen (TRA) – Key figures
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Total Raffinaderij Antwerpen – Production schemeSeparation /Distillation
Crude O
il
Reaction /Conversion Purification Blending
Atmospheric DistillationCDU3 & 4: 360.000 bpsd
LPG
Aromatic Extraction
Naphtha Cracker
Catalytic Reforming60.000 bpsd
Ethylene
Propylene
Benzene
Xylene
Alkylation16.500 bpsd
Visbreaker
Kero Merox27.000 bpsd
Jet Fuel
Gas Oil
Gasoline
Fuel Oil
Bitumen
RAPL
Crude O
il
Atmospheric ResidueDesulphurisation
ARDS: 96.000 bpsd
Clean Gasoline57.000 bpsdCatalytic Cracking
FCCU1 & 2: 100.000 bspd
VacuumDistillation
Catalytic DesulphurisationHDS1 - 4: 120.000 bpsd
ETBE unit(Ethyl Tertiary Butyl Ether)
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Total Petrochemicals – Antwerp Site : FAO
NC1: 1967 Cracker – Capacity 240 kt/yHigh Butane Flexibility
NC2: 1968 Cracker – 2003 Revamp – Capacity 470 kt/y
NC3: 1991 Cracker – 1998 Revamp – Capacity 600 kt/y –Operated by TRA
Extra terminalling capacity: 700 kt Olefins in 2006
Joint venture with ExxonMobil (35 %)
Number of personnel: 640 own personnel + 350 contractors
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Antwerp logistics integration
Frankfurt
FRANCE
North Sea
LUXEMBURG
THE NETHERLANDS
GERMANYRijin
Rotterdam
EthylenePropyleneOil productsCrude oilNATO
AntwerpenTRA, FAO, TPA
FeluyTPF, TPR
Brussels
GentOleochemicalsLubricants
Terneuzen(Dow)
Jemeppe(Solvay)
Beringen
Geleen(DSM)
Cambrai
Gelsenkirchen(Veba)
Marl
Ludwigshafen(BASF)
Liège
Moerdijk(Shell)
Keulen(Erdoelchemie)
TRN
Duinkerken
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Antwerp: Refinery and Petrochemicals Complex
Antwerp Petrochemicals Plant
butane, naphtha,
propylene from FCC, aromatics from reformer
hydrogen, steamcracker gasoline, PFO, C4 raffinate, hydrogen, fuel gas, utilities
Antwerp Refinery
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Total Antwerp Sites – Synergies
Synergies :
§ Common Shared Services: IT, Purchasing, Finance§ Close cooperation: HSE-Fire department, External Relations§Mutual technical support: Naphthacrackers – Waste water treatment§ NC3 Operations by Refinery
Opportunities – further integration
§ Energy optimisation§ Feed optimisation§Market adaptation
New developments
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2,6 2,9
8,3
4,7
2,9 3,0
7,1
4,7
0
2
4
6
8
W.EUR. N.AMER. ASIA+ME WORLD
1,8 1,5
7,9
4,0
1,9 1,6
7
4,3
0
2
4
6
8
W.EUR. N.AMER. ASIA+ME WORLD
Growth in Petrochemicals
Olefins : - Growing markets: 1.5 to 2 x GDP- Mixed evolution depending on geographic region
Propylene :- Growth higher than for ethylene- Increased recourse to refinery productions in Europe and USA
ETHYLENE PROPYLENE
% yagr 1997 - 2002% yagr 2003 - 2008
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Growth in Petrochemicals
2,7
1,1
5,7
3,9
1,8 2
4,5
3,5
0
2
4
6
8
W.EUR. N.AMER. ASIA+ME WORLD
BENZENE 6,5
0,1
7,8
6,2
5,04,2
6,76,2
0
2
4
6
8
W.EUR. N.AMER. ASIA+ME WORLD
P XYLENE
% yagr 1997 - 2002% yagr 2003 - 2008
• Aromatics : mixed growth depending on the products
• Paraxylene : strong demand requiring recovery from refining flows
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European demand for petroleum products• Technological progress of motor engines• Tax advantage maintained for diesel• CO2 issue favourable to development of diesel motor engines
507090
110130150170190210
2000 2005 2010
MT
/ yea
r
Gasoline Diesel Heating oil Heavy Fuel
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Common strategy and objectives :
To fulfil the latest product and environmental specifications
To adapt productions to market trends
Refinery Petrochemical site
ðStringent capital expenditure policy
Minimising production costs: Utilities, logistics
Gasolines
Distillates
Olefins
Aromatics
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Consolidating integration :
Gasoline
• Extraction of aromatics• Common desulphurisation
of gasolines from FCC and steamcracker
Olefins
• Alternative feedstocks• New catalysts and processes• FCC operation
Naphtha and feedstocks
• Cracking of FCC gasoline• Maximum production of
naphtha
Hydrogen
• Joint management of hydrogen productions
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Conclusion :
Refining / Petrochemicals Synergies :
§ Integration already significant
§ Competitive & strategic advantage
Ongoing strategy over next few years :
§ Implementing new operational synergies
§ Capital & research expenditure synergies to adapt to the markets
§ Consolidating integration (capex, exchanges, new projects)
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