the future of the gulf coast petrochemical industry

7/23/2019 The Future of the Gulf Coast Petrochemical Industry

1/21

The Role of Innovation in US GulfCoast Competitiveness

The Future of the Gulf CoastPetrochemical Industry

Global Energy Management Institute

University of Houston

Aril !"# !$$%

James H. DAuriaUOP C


2/21

A!en"a

The cometitiveness ga

Potential for technology innovations toimrove cometitiveness

&ey technology innovations

E'amles of otions for the U(GC

The integration conundrum

Final thoughts


3/21

The USGC Cost of Pro"u#tion Gap$%th&lene %'ample

)orth American Ethane Crac*ers

Have +ecome the High Cost Producers


4/21

Ho( Can Te#hnolo!& Innovation Help)

Technology can be develoed to, Ma*e use of lo-er cost and.or uni/ue

feedstoc*s

Create feedstoc* or roduct fle'ibility

Hedge0educe volatility

0educe re/uired caital investment

Ma*e e'isting assets more efficient

Integrate e'isting assets to increaseefficiency

Imrove roduct /uality

Cometitive advantage is gained

-hen technology innovations arelin*ed -ith the right mar*et or

business circumstances


5/21

Alternative *ee"sto#+s to Consi"er

1o- 2alue 0efinery.Crac*er (treams 1ight Gases

+y Product 3lefins

Pentanes

1ight Cycle 3il

0esid

0emote Gas

Coal 4 +iomass 444

+asis for U( Industry Advantage,

GC 0efining Concentration

Atlantic +asin (tranded Gas

Coal 0eserves

+iomass otential


6/21

,e& Te#hnolo!& Innovations Use of Alternative feedstoc*s

(tranded Gas to 3lefins.Polymers5Mega6Methanol7 PlantsMethanol to 3lefins

Clean Coal

0efinery6 Petrochemical integration Petrochemicals from FCC

3lefins Conversion

1C3 Conversion

)ahtha otimi8ation

1onger term +rea*through Technologies


7/21

-ethanol-TO %#onomies of S#aleConstant IRR

Mega Methanol Plants Enable Gas to 3lefins Pro9ects


8/21

-TO on the USGC


9/21

-TO on the USGC

/ 0ase" on 123-T methanol from Atlanti# 0asin Stran"e" Gas

// 0ase" on 1455-T methanol

U(GC MT3 +ecomes Attractive At High 3il Prices


10/21

Clean Coal Te#hnolo!&CoalCoal

Gasification (ynthesis Gas

Methanol

Po-erF6T 1i/uids(team# H!

Chemicals

Alternative GasificationFeedstoc*s,

Petroleum co*e0esidbio6residue


11/21

Coal to Olefins in the US67 18500 Cru"e9

* Based on correlation

of 97-05 CMAI data:

weighted avg. feedstoc

** Ass!"es #$%5&M'

"ethanol fro" coal

High 3il Prices Imrove Attractiveness of Coal To 3lefins


12/21

,e& Te#hnolo!& Innovations

Use of Alternative feedstoc*s (tranded Gas to 3lefins.Polymers

5Mega6Methanol7 Plants

Methanol to 3lefins

Clean Coal 0efinery6 Petrochemical integration

Petrochemicals from FCC

3lefins Conversion

1C3 Conversion

)ahtha otimi8ation

1onger term +rea*through Technologies


13/21

Prop&lene from Refineries

2G3

Crude

3il

Cru"eCru"eColumnColumn

C:and 1ighter

(traight 0un Gasoline

&erosene

AG3

:a#uum:a#uumColumnColumn

2acuum 0esidue2acuum 0esidue

FCCFCC

ProyleneProylene

Fuel GasFuel Gas

1PG1PG

GasolineGasoline

;iesel;iesel

HeavyHeavy

Fuel 3ilFuel 3il

P0UP0U

;o-nstreamProcessing

UOP 4288K-40efinery FCC is an Imortant (ource of Proylene


14/21

Petro#hemi#als from *CC

Proylene 6 % -t?

GasolineGasoline

EnhancedEnhancedProyleneProylene% @ -t?% @ -t?

CC>>BB

GasolineGasoline

High6(everityHigh6(everityFCCFCC

$ 6D -t?$ 6D -t?

CC!!BB

CC>>BB

GasolineGasoline

PetroFCCPetroFCC!$ -t?!$ -t?

CC!!BB

CC>>BB

AromaticsAromatics

UOP 4399A-7

In#reas

in!Petr

o#hemi

#alPro"u#t

ion

Challenge, Manage Across Traditional +oundaries


15/21

RefineriesRefineries

FCC

3lefin

3lefin0ecovery

GasGas

3ils3ils FCCGasolineGasoline

Cycle 3ilsCycle 3ils

1ight1ight

3lefins3lefins

CC::6C6C

1PG1PG

CC!!BBCC>>BB

3lefin

Crac*ing

Olefins Conversion Te#hnolo!&

;aphtha Cra#+ers;aphtha Cra#+ers

Furnace Product0ecovery

CC%%.C.CDDParaffin60ichParaffin60ich

CC

::.C.C

%%

3lefins3lefins

CC!!BB

CC>>BB

3lefin

Crac*ing

)ahtha)ahtha

UOP 4399A-22

Metathesis, Converts ethylene C: olefins to roylene

3lefin Crac*ing, Converts C: @ C olefin streams to roylene ethylene

Utili8e U(GC refinery li/uid crac*er caacity


16/21

U1(;U1(;

)e- catalysis selectivelyoens rings to ugrade 1ightCycle 3il to roduce,

Clean fuels

+T Aromatics

Environmental +enefits,

0educes H(F3 roduction

U1( ;iesel co6roduct

U1( Gasoline co6roduct

Rin! Openin! to Up!ra"e CO

1C31C3

1C3 0ing3ening

High 3ctaneHigh 3ctaneGasolineGasoline

PetrochemicalsPetrochemicals

UOP 4288A-18

U(GC 3ortunity, Pool 1C3 (treams


17/21

;aphtha Optimi$?higher than -ithconventional nahtha

(ame roylene yield

Increased octane6barrel roduction

Economic value of J>$ MM.year

0e/uires close integration of olefins gasoline roduction


18/21

Concentration of refining caacity in U(GC

rovides basis for cometitive advantage Technology innovations that cross traditional

boundaries can create economic value andcost advantage 6 53n Paer7

+arriers to integration are many, Increasing comle'ity.1imiting fle'ibility

Conflicting ob9ectives

Mi'ing disarate cultures

;ifficult technical issues

;iffusing business focus KLhat businessare -e in4

The Inte!ration Conun"rum

)eed to develo integration enablers

+usiness management ractices

Advanced rocess technology

Information technology


19/21

on!er Term Te#hnolo!& Outloo+

Continuing investments are needed to develone- chemistries

E'amle areas of focus, Catalytic )ahtha Crac*ing

Paraffin ActivationEthane +en8ene to E+;irect Proane to P3# CA)# Acrylic AcidPentanes to Higher 2alue Chemicals

;irect Methane to Methanol 0ene-ables as Feedstoc*s Kcarbohydrates#

biomass


20/21

The Role of Te#hnolo!&$*inal Thou!hts

Technologies are available today to ta*e advantage oflo-er cost feeds

0emote gas# coal# refinery by6roducts

Future technology advances -ill continue to come viarocess engineering catalysis innovations

)e- technology needs to be matched -ith the rightsituations to rovide a cometitive advantage= ForU(GC,

Integration -ith refining# o-er Ability to increase roylene roduction Pooling of by6roduct streams

Access to Atlantic basis remote gas# U( coal Can -e imrove the ris*6re-ard balance4

Cost to develo commerciali8e ne- technology First user ris*s re-ards Government regulations incentives

Mar*et uncertainties


21/21

THA;, =OU

the future of the gulf coast petrochemical industry

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