EVOLUTION TO AN INTEGRATED PARTNERSHIPCost-effective, innovative solutions improve Ukrtatnafta’s quality of fuels and raise margins

value DeliveredImproved sales and margins

Provided innovative, fl exible technology solutions

Increased processing of opportunistic crudes

Expanded quality of fuels

Positioned to meet winter demand

Identifi ed untapped resources

Delivered on time, within budget

DisCOveR

Located in the heart of the Ukraine, JsC Ukrtatnafta’s Kremenchug refi nery was at a crossroads, facing a business imperative to increase production of better quality fuels, improve revenues and meet forthcoming stringent fuel regulations. With refi ning capacity of 4-10 million tonnes of crude oil per annum, the Ukraine’s largest refi nery needed strategic replacement and upgrades of aging assets in phases. While gasoline sulphur content was a priority, the refi ner also needed to improve quality of diesel fuel, focusing not only on production of ultra low sulphur grades but also on producing winter grades with enhanced cold fl ow properties. These improvements would allow Ukrtatnafta to gain revenue opportunities largely fed by the country’s growing share of commuter and commercial diesel vehicles. To achieve its goals within its fi nancial parameters, Ukrtatnafta needed a trusted, collaborative and results-focused advisor to bring forward strategic, cost-effi cient and quality solutions. Criterion Catalysts & Technologies and shell global solutions were selected for their robust, fl exible technology solutions that would allow Ukrtatnafta to reach its business goals with minimal investment. Ukrtatnafta’s decision would ultimately lead to a fully integrated partnership and new opportunities, some of which continue to be implemented today.

DiAgnOse

Drawing on its deep experience and knowledge gained as an owner and operator of large, complex refi ning facilities, Criterion and shell global solutions worked with Ukrtatnafta to seamlessly analyse the refi nery’s priority needs and collaboratively bring forward solutions with minimal infrastructure changes. Together, the team developed a customised solution to revamp a diesel hydrotreating unit (DHT) in two phases that would ultimately produce euro-5 diesel. Recognising another opportunity to bring Kremenchug closer to its business objectives, Criterion and shell global solutions also recommended a cost-effective solution focused on improvement of catcracker feed, and hence quality of gasoline pool, that could be achieved by conversion of another DHT unit to treat vacuum gasoil.

CASE STUDY

“We looked for a company to meet our needs. In Criterion Catalysts & Technologies and Shell Global Solutions, we gained trusted advisors that not only focused on the project at hand but also brought forward options and new ideas to further help us reach our objectives and seize new opportunities to better serve our customers.”

Sergey Koshelyuk, Deputy Chairman of the Board, JSC Ukrtatnafta

Design

To optimise production capabilities with minimal infrastructure changes, one DHT unit (LCh-24-7/68 DHT), consisting of two trains in parallel, underwent a two-phased revamp. A second unit (LK 6U-300 DHT) was converted to treat straight-run vacuum gasoil.

Revamp of LCh-24-7/68 DHT Unit

Phase one improvements enable uninterrupted production of automotive diesel based on the move to euro-3, which requires no more than 350 ppm sulphur content. With lighter feedstock, the solution allows the refiner to produce shipments of diesel with sulphur content of no more than 50 ppm to meet euro-4 guidelines. The solution included:

Conversion of LK 6U-300 DHT Unit

Criterion and shell global solutions recommended the conversion of another DHT unit to treat straight-run vacuum gasoil, with minimal changes, that enables production of vacuum gas oil with 0.2 per cent sulphur content. The customised catalyst solution extends catalyst lifespan to reach a cycle of about 24 months, thus yielding longer intervals between scheduled maintenance. The unit conversion included:

DeLiveR

identifying challenges and working as a team towards the best solutions, Criterion, shell global solutions and Ukrtatnafta successfully implemented a series of strategic, cost-effective technology improvements that enabled the Kremenchug refinery to meet competitive challenges, improve margins and increase production when fuel standards were also becoming more stringent. During a 12-month period ending in mid-2010, Ukrtatnafta realised sales and revenue increases of more than 49 and 129 per cent, respectively. During the same period, crude intake increased 51.5 per cent. While priority focused on enabling Kremenchug’s gasoline grades to meet euro-3 standards, upgrades for production of low-sulphur diesel fuels significantly improved refining efficiency. With sustained feedstocks, improvements also facilitated full production of euro-4 diesel fuel well ahead of the mandate deadline. As a result of Criterion and shell global solutions’s successful partnership with Ukrtatnafta, the relationship has evolved to include a full integration of services, catalysts and licensing that is likely to enable the refiner to reach full compliance with euro-4 and 5 gasoline standards. Additionally, the Kremenchug refinery will be positioned to market a full range of winter diesel grades, including Arctic diesel, at competitive prices.

COnTACT Us

For more information about how we can help improve your operations, increase yields and boost revenues, visit us at www.shell.com/globalsolutions and www.criterioncatalysts.com.

Shell Global Solutions is a network of independent technology companies in the Shell Group. In this material, the expressions “the Shell Group,” “Shell” and “Shell Global Solutions” are sometimes used for convenience where reference is made to these companies in general, or where no useful purpose is served by identifying a particular company. • The information contained in this material is intended to be general in nature and must not be relied on as specific advice in connection with any decisions you may make. All statements regarding JSC Ukrtatnafta, its affiliates and their products are solely based on the information provided by JSC Ukrtatnafta and have not been independently verified by Shell Global Solutions. Image provided courtesy of JSC Ukrtatnafta. Shell Global Solutions is not liable for any action you may take as a result of you relying on such material or for any loss or damage suffered by you as a result of you taking this action. Furthermore, these materials do not in any way constitute an offer to provide specific services. Some services may not be available in certain countries or political subdivisions thereof. • Copyright © 2010 Shell Global Solutions International BV. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical including by photocopy, recording or information storage and retrieval system, without permission in writing from Shell Global Solutions International BV. GS33381210En(A)

“The common success, after five years collaborative work, came as a result of building trust, patience, perseverance and identifying the challenges together and agreeing on the most effective solutions.”

Malcolm Robertson, Director General, Shell Global Solutions Eastern Europe B.V., Moscow Branch

Criterion’s new generation of catalyst technology, AsCenT DC-2531, a high-activity CoMo catalyst providing a full range of sulphiding options as well as handling and loading flexibilities;

Reactor modifications with shell global solutions’s reactor internals and HD Trays to enhance unit performance, distribute gas and liquid uniformly, minimise thermal instabilities and maximise reactor catalyst inventory and catalyst utilization.

supply of reactor internals including HD tray;

AsCenT DC-2551 specially developed for medium pressure vgO hydroprocessing applications providing high coke stability, metals uptake capacity and high activity;

AsCenT niMO Dn-3551 CFH that provides protection to catalysts from feed metal contaminants.