integration synergies presentation

Download Integration Synergies PResentation

Post on 14-Apr-2015

17 views

Category:

Documents

7 download

Embed Size (px)

DESCRIPTION

Presentation on the synergies of petrochemical integration

TRANSCRIPT

Synergies between Refining and Petrochemicals : Today and TomorrowContribution to the work of the High Level Group for the European Commission by Total Raffinaderij Antwerpen, February 29th 2008

Synergies between Refining and PetrochemicalsRefining / Petrochemicals integration : Background Within the Total Group The Antwerp example

New developments : Market trends Longer term strategy and developments

1

2

Refining / Petrochemicals Integration

Refining / Petrochemicals process linksCondensate splitterDistillates Naphtha Butane Fuel Gas, PFO Propylene Hydrogen Butenes Gasolines Benzene fraction C7 / C8 Aromatics Naphtha

Ethylene Propylene

Steamcracker

Refinery

Butadiene Py Gas Benzene Toluene

Aromatics

P-Xylene O-Xylene

4

Refining - Petrochemicals integration within TOTAL

Vlissingen Port Arthur Gonfreville Dunkirk Antwerp Leuna

Grandpuits TOTAL Refinery Donges Feyzin

Carling

TOTAL Petrochemicals Steamcracker 100 % third party Steamcracker

Lavera

5

Benefits of integrationSingle 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

1

6

Consolidation of production for both sectorsChemicals percentage in Refining sales Naphtha percentage from TOTAL refineries used as feedstock in TPA steamcrackers

3.1%

1997

36 %

6.4 %2001

60 %

7.2 %20032

67 %

7

A common approach100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

90% 74%

39% 24%

BP

Shell

Total

Exxon Mobil*

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 Mosmorran19 20

8

The Antwerp example

Total in Antwerp

10

Total Raffinaderij Antwerpen (TRA) Key figuresCrude + condensate capacity Staff (incl. NC3) Shift Personnel Contractors (outside Projects & TA) EDCI (Solomon) Refinery NC3 Naphtha throughput (in 2006) Surface area Storage tanks & capacity 31 process units - 1 central control room Power station + cogeneration 18 Mt/y 1,026 48 % 450 m/d 3.84 Mb/d 1.4 Mt/y 220 ha 162 - 2.1 Mm3

11

Total Raffinaderij Antwerpen Production schemeSeparation / Distillation Reaction / Conversion Purification BlendingLPG EthyleneNaphtha Cracker

Propylene

Benzene XyleneAromatic Extraction Catalytic Reforming 60.000 bpsdCrude Oil Crude Oil

Jet FuelKero Merox 27.000 bpsd

12

R A P L

Atmospheric Distillation CDU3 & 4: 360.000 bpsd

Gas OilCatalytic Desulphurisation HDS1 - 4: 120.000 bpsd

ETBE unit (Ethyl Tertiary Butyl Ether) Alkylation 16.500 bpsd Atmospheric Residue Desulphurisation ARDS: 96.000 bpsd Clean Gasoline 57.000 bpsd

Gasoline

Catalytic Cracking FCCU1 & 2: 100.000 bspd

Fuel OilVisbreaker

BitumenVacuum Distillation

Total Petrochemicals Antwerp Site : FAONC1: 1967 Cracker Capacity 240 kt/y High 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

13

Antwerp logistics integrationRotterdam

THE NETHERLANDSMoerdijk (Shell) Marl

GERMANY North SeaTerneuzen (Dow) Duinkerken TRN

R ijinGelsenkirchen (Veba)

AntwerpenTRA, FAO, TPA Geleen (DSM)

GentOleochemicals Lubricants Brussels

Beringen Lige

Keulen (Erdoelchemie)

Frankfurt

FeluyTPF, TPR

Jemeppe (Solvay)

FRANCEEthylene Propylene Oil products Crude oil NATO14

Cambrai Ludwigshafen (BASF)

LUXEMBURG

Antwerp: Refinery and Petrochemicals Complexbutane, naphtha, propylene from FCC, aromatics from reformer

Antwerp Refinery

Antwerp Petrochemicals Plant

hydrogen, steamcracker gasoline, PFO, C4 raffinate, hydrogen, fuel gas, utilities

15

Total Antwerp Sites SynergiesSynergies : 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

16

New developments

Growth in Petrochemicals87,9 7

8 64,0 4,3

8,3 7,1

ETHYLENE6 4 2 0W.EUR. N.AMER. ASIA+ME WORLD1,8 1,9 1,5 1,6

PROPYLENE4,7 4,7

42,6 2,9

2,9 3,0

2 0W.EUR. N.AMER. ASIA+ME WORLD

% yagr 1997 - 2002 % yagr 2003 - 2008

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

18

Growth in Petrochemicals8BENZENE

86,5

7,8

P XYLENE

6,7 6,2 6,2

6 42,7

5,7 4,5 3,9 3,5

6 4 2

5,0 4,2

2 0

1,8 1,1

2

0,1

0W.EUR. N.AMER. ASIA+ME WORLD% yagr 1997 - 2002 % yagr 2003 - 2008 W.EUR. N.AMER. ASIA+ME WORLD

Aromatics : mixed growth depending on the products Paraxylene : strong demand requiring recovery from refining flows

19

European demand for petroleum products Technological progress of motor engines Tax advantage maintained for diesel CO2 issue favourable to development of diesel motor engines

210 190 MT / year 170 150 130 110 90 70 50 2000 Gasoline20

2005 Diesel Heating oil

2010 Heavy Fuel

Common strategy and objectives :To fulfil the latest product and environmental specifications To adapt productions to market trendsGasolines Olefins

Distillates

Aromatics

Refinery

Petrochemical site

Stringent capital expenditure policy Minimising production costs: Utilities, logistics

21

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

22

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)

1

23