profit pivot points in a refinery-petrochemical integrated
TRANSCRIPT
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Profit Pivot Points in a Refinery-Petrochemical Integrated ComplexLUMMUS TECHNOLOGY
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Agenda
Fundamental Challenges
Basics
Typical Refinery and Typical Petrochemicals Unit
Integrated Refinery / Petrochemical Unit
Profit Pivot Points
Hydrocracker
Mixed Feed Steam Cracker
Co-product Selectivity
Case Study
McDermott: Profit Pivot Points
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Challenges Facing Refiners
Reduced growth in fuel
demand
Energy efficiency improved
Extended fuel mileage
Enhanced Electric Vehicles
Environmental Headwinds
Total Transport
Oil, Biofuels, Gas, Other
CAGR
2.8%
1.1%
McDermott: Profit Pivot Points
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Drivers of Rapid
Petrochemicals Growth
From 2016 to 2040, 40%
chemicals sector growth
Quality of l ife improvement
Rising prosperity
Development of M iddle Class
Petrochemical growth
exceeds GDP growth
Emerging Markets
unprecedented GrowthAfrica / Middle East
Asia Pacific
Latin America
Europe
North America
Global Middle Class Growth
Source: The Brookings Institute
4
2030
5.3 Billion People2015
3 Billion People
0.4
0.3
0.7
0.3
1.4 3.4
0.5
0.70.3
0.3
McDermott: Profit Pivot Points
0
100
200
300
400
1990 2000 2010 2020 2030 2040 2050
Ind
ex =
10
0
Relative Olefins and Aromatics
Demand vs GDP
Relative Olefins and Aromatics
GDP
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Synergies of Refinery /
Petrochemical Integration
Recent Trend: Greater integration no just co-location
Position petrochemicals plants near:
Low-cost feedstock
Lower transportation costs for feedstocks
Fuel Sources
Existing Infrastructure
Downstream Markets: PE / PP / PET
Petrochemicals provide high value outlet for refiners
McDermott: Profit Pivot Points
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PetrochemicalsRefinery
Complimentary Units
H2
Naphtha
Py-Oil
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Traditional Refinery
Atm
Tower
Crude
Vac
Tower
DHT
LPG
NHTCCR
Naphtha
Jet, Diesel
Resid
VGO
HT
Delayed
Coker
FCC
VGO
Hydro
CrackPropylene
Gasoline
Cycle Oil
IsomGasoline
H2
Gasoline
Oil Conversion90% Fuels
10% Chemicals Coke
Jet, DieselBottoms
Aromatics
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Traditional Petrochemicals
Gas
Feed
Steam
Cracker
Hydrogen
Fuel Gas
Ethylene
Ethane
Gas Crackers
PGO/PFO
Pygas
LPG
Fuel Gas
Ethylene
Liquid
Feed
Steam
Cracker
Hydrogen
Fuel Gas
Ethylene
Propylene
Butadiene
BTX
PGO/PFO
Naphtha
AGO
VGO
Mixed C4s
Pygas
HVGO
Liquid Crackers
LPG
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Feed Flexible
Petrochemicals Complex
Ultimate flexibility
Recent trends:
Return to multiple feed crackers
Larger capacity 1500 – 2000 KTA
Mixed
Feed
Steam
Cracker
Unit
Hydrogen
Fuel Gas
Ethylene
Propylene
Butadiene
BTX
PGO/PFO
Naphtha
AGO
VGO
Mixed C4s
Pygas
HVGO*
Ethane
Mixed Feed Crackers
LPG
McDermott: Profit Pivot Points
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*Hydrocracked
Vacuum Gas
Oil
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Integrated Refinery and
Petrochemicals Unit
Atm
TowerCrude
LPG
Jet
Diesel
Resid
ISO
CRACKER
Naphtha
Mixed
Feed
Steam
Cracker
Unit
Naphtha
Ethylene
Propylene
Mixed C4s
HVGO
C5+ Pygas
Hydrogen
Vac
Tower
LC-Fining /
LC-Slurry
VGO
Do
wn
stre
am
Pe
tro
ch
em
ica
ls U
nit
s
Diesel BTX
Hydro
processing
McDermott: Profit Pivot Points
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ULSFO
Py-Oil
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Profit Pivot Points for Integrated
Complex
• Optimize cracker feeds
• Balance Hydrogen consumption to optimize production of chemicals
• HVGO excellent Lubes or Cracker feedstock
Hydroprocessing
• Feed Flexibility
• Cracking Severity determined by Propylene to Ethylene (P/E) Ratio
Mixed Feed Steam Cracker
• Monetize valuable co-products such as Butadiene, Paraxylene, BTX
• Olefins Conversion Technology maximizes C2-C3-C4 Product flexibility
Co-Product Selectivity
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Hydroprocessing:
Chevron Lummus Global (CLG)
Chevron Lummus Global (CLG)
Joint Venture
Chevron: Major Oil Company with world class Hydroprocessing Technologies
McDermott: A premier EPC company offering world-class Lummus
Technologies
100+ Hydroprocessing Plants designed worldwide
Active R&D Programs, Pilot Plant in Richmond, CA and Pasadena, TX
Multiple Hydroprocessing Solutions:
11
Gas Oil and
VGO
Hydrocracking
Bottom of the
Barrel
Hydrocracking
Ebulated
Bed
Fixed
Bed
Slurry
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Hydroprocessing
Profit Pivot Point
Miracle of Hydrogen Addition
Effectively prepares feed to
Mixed Feed Steam Cracker in terms of Feed Flexibility,Conversion, and Yield
McDermott: Profit Pivot Points
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Jet
Diesel
ISO
CRACKER
LC-Fining /
LC-Slurry
VGO
Hydroprocessing
Resid
H2
H2
LPG
Naphtha
Diesel
HVGO
ULSFO
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Upgrading the bottom of the
barrel
Catalyst and reactor
configurations determine
range of conversion
McDermott: Profit Pivot Points
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Outlet for Py-Oil upgrading
from Steam Cracker
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Steam Cracking:
Lummus Technology
14
Lummus Technology, part of McDermott Technology
Leading technology licensor for refining, petrochemical, gas processing, and coal gasification technologies
120+ Licensed Technologies
3000+ Patents, Applications, Trademarks
Industry Leading Ethylene technology
McDermott: Profit Pivot Points
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Mixed Feed Steam Cracker
CompressionRecovery &
PurificationLiquid
Heaters
Process Features:
SRT ® Pyrolysis Furnace Module
High Yield
Long Run Length
Optimized CAPEX / OPEX
Low Pressure Design vs conventional plants
Multi Component Refrigeration
Reduced Compressor Casings and Equipment Count
Gasoline
and
Heavies
Removal
Gas
Heaters
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Mixed Feed Steam Cracker
Profit Pivot Points
McDermott: Profit Pivot Points
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0
50
100
Wt.
%
Feed Flexibility
Typical Pyrolysis Yields(major chemicals)
Ethylene Propylene Butadiene BTX
Cracking Severity
Cracking Severity High Low
P/E Ratio 0.45 0.65
Energy / kg Ethylene Base + 16%
Feed Rate Base + 14%
Ethylene Production Base Base
Propylene Production Base + 46%
*P/E Ratio defined as
Propylene / Ethylene Ratio
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Co-Product Profit Pivot Point
Steam
Cracker
UnitSat’d C4s
Hydrogen
Fuel Gas
Ethylene
Propylene
Mixed C4s
C5-C8 Pygas Pygas
HT
Total
Hydro
Sat’d C5-C8
NaphthaSat’d C4s
PP Unit
PE UnitPolyethylene
Polypropylene
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Co-Product Profit Pivot Point
C4 Train (Optimized)
Steam
Cracker
Unit
Butadiene
Extraction
MTBE / HP IB
Unit
1,3-Butadiene
Butene-1
i-Butane to Alky
MTBE
Butene-1
Raff-1
Raff-2
Raff-3Ethylene Propylene
Mixed
C4s
n-Butane
Raff-3 to Alky
McDermott: Profit Pivot Points
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C5s
Olefins
Conversion
Technology
IsobutyleneMethanol
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Co-Product Profit Pivot Point
Pygas (Optimized)
Steam
Cracker
Unit
Stage 1 Pygas
Hydrotreating
C5s to Cracker
C5+
Pygas
Stage 2 Pygas
Hydrotreating
Pygas
BTX
Paraxylene
Benzene
Paraxylene
Propylene Aromatics
Styrene
C6-C8
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to OCT
Ethylene
Cumene
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Co-Product
Block
Mixed
Feed
Steam
Cracker
Unit
Profit Pivot Points
Putting it all together
Mc
De
rmo
tt: Pro
fit P
ivo
t Po
ints
20
Atm
Tower
ArabLight
Crude
LPG
Jet
Diesel
Resid
ISO
CRACKER
Naphtha
Ethylene
Propylene
MixedC4s
HVGO
C5+Pygas
Hydrogen
Vac
Tower
LC-Fining /
LC-Slurry
VGO
Diesel
PGO
Hydro
processing
Benzene
Xylenes
Naphtha
Butene-1
Butadiene
Py-Oil
ULSFO
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Case Study - Refinery /
Petrochemicals Integration
Mc
De
rmo
tt: Pro
fit P
ivo
t Po
ints
21
Case 1 2 3 4 5Reside Upgrading No LC-FINING LC-FINING LC-FINING LC-SLURRYFuels Production No No Yes Yes YesFuel Oil Type 3% HSFO 1% LSFO 1% LSFO 1% LSFO 0.1% ULSFOAdditional Processing Dual Cracker
Crude (Arab Light), BPD 195,000 162,000 227,000 400,000 246,515
Ethylene, KTA 2,000 2,000 2,000 4,000 2,000
Propylene, KTA 1,480 1,493 1,469 2,805 1,489
Butadiene, KTA 357 357 347 774 326
Euro VI Diesel, BPD 0 0 74,500 94,265 106,000
Fuel Oil, BPD 54,000 25,000 20,000 36,935 8,500
Anode Coke, KTA
% Required H2 from Cracker 39% 26% 18% 22% 16%
Chemical Yield on Crude, % 58% 70% 49% 57% 45%
% IRR 14.6% 22.4% 24.4% 33.0% 25.0%Notes
1. All cases includes Hydrocracker + Olefins Conversion Technology2. All cases produce MTBE, Butene-1, Benzene, Xylenes3. 3% HSFO priced at $21/Bbl less than crude
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Crude to Chemicals
A Disruptive Technology
McDermott: Profit Pivot Points
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Source: Saudi Aramco PresentationAt Baker Hughes (GE) 2018
Annual Meeting, Mr. Abdulaziz Al-Judaimi
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Conclusion
Focus on integration of refinery and petrochemicals units
Rapid petrochemicals demand provides opportunities for refiners to shift to chemicals
Profit Pivot Points will allow producers to pivot to meet changing market demands:
Hydrocracker
Mixed Feed Steam Cracker
Co-Product Management
McDermott: Profit Pivot Points
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Source: EIA and Global Data
Technology solutions exist to
upgrade refined products to
valuable petrochemicals
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Nicholas KinnisBusiness Development Manager
[email protected] Technology LLC1515 Broad Street
Bloomfield, NJ, 07003 USA
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