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Refining Challenges and Opportunities
Ashis Banerji UOP LLC University of Houston November 2006 © 2006 UOP LLC. All rights reserved. UOP
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Who We Are Global company with manufacturing sites and offices in 16 countries Over 2,800 highly trained employees Acquired by Honeywell in 2005 More than 90 years of innovative solutions for the hydrocarbon processing industry More than $1 billion in revenues annually from over 110 countries This in a nutshell is who we are and what we do. Most of our revenue comes from outside the United States, so we have people strategically located close to our key markets. Our staff has a high proportion of scientists, engineers, technicians, and customer support personnel as you might expect from a technology development and commercialization company. We have had a premier position in the hydrocarbon processing industry for 85 years. For the past few years our revenues have exceeded a billion dollars and we have served customers in more that one hundred countries. We are jointly owned by Union Carbide and AlliedSignal. UOP
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World’s Largest Process Technology Licensing Organization
More than 70 licensed processes 2,500 active patents 300+ catalysts More than 150 Molecular sieve adsorbents 30+ engineered products Packaged process units and systems Proprietary equipment Control systems and instrumentation Engineering, technical and training services UOP
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What is Driving Change in the North American Region?
Refining Utilization and Demand Growth High utilization combined with growth Growth of diesel is greater than gasoline Growth in light product / declining resid Processing heavy crudes Regulations 95.0 25 20 90.0 15 Utilization % 85.0 Demand Growth Mbpd 10 80.0 5 75.0 2002 2007 2012 2017 High level of demand growth is pushing the refinery utilizations up into 90% and higher. The only logical solutions to this picture is that new capacity will need to be added not only to meet the demand but also the changing product slate which is favoring diesel production. Demand Growth N. America Europe Asia Growth with utilization near sustainable limit  more capacity UOP
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Crude Oil Quality Trends
Average crude quality declining Increasing light / heavy price differentials Significant impact on desulfurization requirements Impact on heavy fuel oil markets Light to heavy differential increasing In additional to increasing need for conversion of the bottom of the barrel or heavy fuel oil to light products, we’re also seeing a gradual decline in the quality of crude oil being processed worldwide. We’re seeing both increase in sulfur on average and an increase in density of crude oil. The density often reflecting a higher residue content. These crude oil trends have a significant impact on processing requirements, both desulphurization capacity to produce ultra-high quality gasoline and diesel and also the conversion requirements to minimize fuel oil production while meeting gasoline and diesel fuel demand requirements.. (Sources: Purvin & Gertz) Increasing residue conversion to transport fuels UOP
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More Conversion Needed to Process Heavy Crudes
Yield Heavier crudes yield less gasoline and distillate Add conversion needed Heavier crudes require hydrogen addition to meet distillate fuel quality Heavy crudes yield less light fuel component and more processing is needed to convert heavy crude components to meet demand for light components Tapis Arab Med WTI Maya UOP
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Oil Resources As Function of Economic Price
Arctic Cumulative need to 2030 Oil Shales Deep Water E O R Heavy Oil bitumen Other Conv. Oil Very interesting slide which shows various breakpoints for economic exploitation of crude sources ranging from conventional to oil shales. You can see that unconventional sources like bitumen derived crudes are becoming viable at today’s crude oil prices, as evident by activity and a number of projects in Canada. The availability of world oil supply gets significantly increased once the economic price for its recovery is reached. The total available amount of crude oil potential is in the neighborhood of 4.5 to 5.5 trillion barrels, depending on what happens with shale oil production which is lagging Already Produced OPEC ME Super deep Source: IEA, Resources to Reserves, 2005 Heavy oil development viable at current prices UOP
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North America Incremental Product Demand 2006-2015
Over the period of , NA incremental demand calls for a signifficant volume of madditional gasoline and diesel, and almost no addition of resid fuel. This skewed product demand will drive the refiners for more conversion capacity to absorb the excess resid and shift the slate to diesel. (Source: Purvin & Gertz) Diesel demand increasing by 1.2 MMBPD (25% increase) Gasoline demand increasing by 1 MMBPD (19% increase) More diesel then gasoline with no resid fuel UOP
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Product Specifications
Gasoline & Diesel Low / ultra-low sulfur legislation More stringent benzene, RVP specs Further vehicle emissions standards anticipated Tighter NOx standards Biofuels Ethanol pursued in many countries US Renewable Fuels Standard Widespread discussion of biodiesel and green diesel legislation Fuel Oil No major changes for inland fuel oil Bunkers remain growing fuel oil outlet Low / ultra-low sulfur legislation Close to completion in OECD Other regions adopting EU Ethanol pursued in many countries US Renewable Fuels Standard Ethanol blending ETBE, TAEE interest Widespread discussion of biodiesel and green diesel legislation EU pursuing up to 30% target by 2030 Fuel Oil No major changes for inland fuel oil Typically 1% sulfur Bunkers remain growing fuel oil outlet Sulfur reduction Stakeholder reviews Controversial Clean fuels needs will continue to drive business UOP
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Technology Innovations are Key to Success
New flow schemes Maximize yield of high value products Flexible product slate Distressed stream processing Process integration New catalysts Efficient hydrogen utilization Higher activity and yields Rapid catalyst commercialization UOP
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Examples of UOP Reforming Catalyst Innovations
2005 R-98™ catalyst – high yields 2003 R-264™ catalyst - high density, high activity 2002 R-274™ catalyst - high yield Fixed-bed Platforming catalysts CCR Platforming catalysts 2001 R-86™ catalyst - high yields, low costs 2000 R-234™ catalyst - low coke, increased flexibility 1994 R-72™ catalyst – high yields 1993 R-132™ catalyst - high activity, surface area stable 1992 R-56™ catalyst - maximum stability 1988 R-34 catalyst – low Pt version Since 1949 UOP has been committed to improving reforming economics. From the first semiregenerative platforming unit then, to the R-98 catalyst introduced this year, UOP has continually funded reforming research and development to improve refining. 1983 R-62™ catalyst – high stability 1975 R-32™ catalyst - lower Pt 1971 First CCR Platforming unit 1949 First SR Platforming unit UOP
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Continuous Innovation and Improvement: Fluid Catalytic Cracking
6,200 Theoretical Octane Barrels New Reactor Concepts 6,000 Improved Reaction Systems 5,800 Octane Catalysts 5,600 Octane Barrels / 100 Barrels Feed Extended Riser 5,400 Zeolite Catalysts 5,200 An example from Refining illustrates how advances in science, materials, and engineering have driven technology to a high level of maturity and sophistication. Amorphous Catalysts 5,000 Octane Barrel Capacity of FCC 4,800 1950 1960 1970 1980 1990 2000 UOP
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UOP Has Developed Rapid Delivery of High-Performance Catalysts
Drivers Features Levers Tools Technology Metal Function Acidity Pore Geometry Catalyst Design Engine Catalysts Clean Fuels Yields Flexibility Low Cost Yield Hydrogenation Activity Stability Feed Char Product Char Reaction Engr Process Models Process UOP Catalyst Design Engine (CDE) converted fundamental knowledge and experimental database into a computer model for catalyst design UOP
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An Evolution in Perspective
Traditionally: Viewed catalysts from activity versus selectivity standpoint UOP
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An Evolution in Perspective
Now: View catalysts from more dimensions UOP
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An Evolution in Perspective
UOP
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An Evolution in Perspective
Now: View catalysts from more dimensions Hydrogenation is a key variable UOP
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Synthetic Crudes and Heavy Crudes Available in Market
Refining Condensate DilBit Heavy Crude Refineries Heavy SCO SynDilBit SynBit Medium Crude Refineries Heavy Crude/Bitumen Production Light SCO Light Crude Refineries Upgrading Light Synthetic Crude Oil (SCO) Source: Purvin & Gertz, 2004 UOP
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Processing Heavy Crudes Affect All Areas of the Refinery
High Resid Contnt Coking or SDA required High contaminant level High-severity hydrotreating High VGO content after resid conversion Synthetic Crudes No resid content Blending with other heavy crudes Low-quality distillate High-severity hydrotreating Large volume of low-quality VGO FCC feed pretreatment UOP
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Processing Heavy Crudes Affect All Areas of the Refinery
Bitumen Blends High resid content Coking or SDA required High contaminant level High-severity hydrotreating High VGO content after resid conversion Synthetic Crudes No resid content Blending with other heavy crudes Low-quality distillate High-severity hydrotreating Large volume of low-quality VGO FCC feed pretreatment Additional VGO Conversion Required! UOP
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Heavy Crude-derived VGOs are Hydrogen Lean and Contaminant Rich
Lt. Arabian Cold Lake Athabasca Coker Property VGO VGO VGO HGO Gravity, °API Sulfur, wt-% Nitrogen, wppm Hydrogen, wt-% Total Aromatics, vol-% UOP
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FCC Feed Hydrogen Content Must be Optimized
Integration of Hydroprocessing and FCC Operation is the Key to Processing Bitumen-derived Crudes Diesel HDS FCC Gasoline FCC Feed Hydrogen Content Must be Optimized UOP
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FCC Feed Pretreating is Not Always the Right Solution
FCC capacity still limited by high VGO content of heavy and synthetic crudes High-quality distillate fuels cannot be produced in an FCC unit UOP
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Hydrocracking Required to Convert Incremental VGO and Produce Right Product Mix
Diesel Unionfiningâ„¢ FCC Gasoline Gasoline Unicrackingâ„¢ Diesel FCC Gasoline UOP
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Is the Once-through Unicracking Process the Right Choice?
Higher yields of naphtha and distillate Higher quality FCC feedstock Flexibility to adjust conversion for seasonal demand Hydrocracking would therefore appear to be the right technology choice, but there are limits as to how this technology can be used. The FCC feed hydrotreater should therefore, in many cases, be designed to be a Partial Conversion Unicracker, not a simple hydrotreater. The unit could be designed to produce enough unconverted oil to keep the FCC unit full, while producing as much naphtha and diesel as possible. The capacity of a mild hydrocracking unit would be limited only by the size of the available market, or by the amount of additional naphtha that can be processed through the existing refinery, without incurring significant additional capital costs. UOP
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Once-through Unicracking Process Produces FCC Feed with High Hydrogen Content
Naphtha R-2 61.5 5 R-1 Kerosene 12 16 mm Smoke Point 64 Heavy Diesel 17 45 Cetane No. FCC Feed 30 Feed 60 UOP
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Increased Conversion Produces Higher-quality Fuels
30 80 25 70 Smoke Point 20 60 15 Cetane Index Kerosene Smoke Point, mm Diesel Cetane Index 50 10 40 5 30 20 40 60 80 100 Conversion, wt-% Conventional VGO Feed UOP
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Is Recycle or Co-Processing Unicracking Process the Right Choice?
Once-Through hydrocracking mode has poor hydrogen utilization Lower light product quality Sub-optimal hydrogen content of FCC feed Alternative flow schemes needed for independent control of product quality Hydrocracking would therefore appear to be the right technology choice, but there are limits as to how this technology can be used. The FCC feed hydrotreater should therefore, in many cases, be designed to be a Partial Conversion Unicracker, not a simple hydrotreater. The unit could be designed to produce enough unconverted oil to keep the FCC unit full, while producing as much naphtha and diesel as possible. The capacity of a mild hydrocracking unit would be limited only by the size of the available market, or by the amount of additional naphtha that can be processed through the existing refinery, without incurring significant additional capital costs. UOP
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Separate-hydrotreat Configuration Provides Flexibility
Naphtha 30 R-2 11 R-1 Kerosene 16 23 mm Smoke Point 95 Heavy Diesel 8 57 Cetane No. FCC Feed 30 30 Feed 60 Independent Control of Distillate and FCC Feed Qualities UOP
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Advanced Partial-conversion Unicracking (APCU) Integrates FCC Feed Pretreatment with ULSD Production
Co-feed VGO Feed AMINE Fractionation HT Rx PT Rx SEP HC Rx E H S ULSD Enhanced Hot Separator FCC Feed UOP
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Catalysis and Catalytic Processes will Enable increased Utilization of Heavy Oil in the USGC
Hydrogenation optimizes FCC feed hydrogen content Produces high-quality distillate fuels to meet growing demand Diesel produced can meet all ULSD specs Product slate can be seasonally adjusted UOP
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If there are any questions about my presentation, I have a few minutes to field a couple of them from the audience. UOP
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