Synergies between Refining and Petrochemicals : Today and Tomorrow

Transcription

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

2 Synergies between Refining and Petrochemicals Refining / Petrochemicals integration : Background Within the Total Group The Antwerp example New developments : Market trends Longer term strategy and developments 1 2

3 Refining / Petrochemicals Integration

4 Refining / Petrochemicals process links Condensate splitter Naphtha Distillates Ethylene Naphtha Butane Fuel Gas, PFO Steamcracker Propylene Refinery Propylene Hydrogen Butenes Gasolines Benzene fraction C 7 / C 8 Aromatics Aromatics Butadiene Py Gas Benzene Toluene P-Xylene O-Xylene 4

5 Refining - Petrochemicals integration within TOTAL Vlissingen Port Arthur Dunkirk Antwerp Leuna Gonfreville Grandpuits Carling TOTAL Refinery Donges TOTAL Petrochemicals Steamcracker Feyzin 100 % third party Steamcracker Lavera 5

6 Benefits of integration Single 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

7 Consolidation of production for both sectors Chemicals percentage in Refining sales Naphtha percentage from TOTAL refineries used as feedstock in TPA steamcrackers 3.1% % 6.4 % % 7.2 % % 7 2

8 A common approach 100% 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 Mosmorran

9 The Antwerp example

10 Total in Antwerp 10

11 Total Raffinaderij Antwerpen (TRA) Key figures Crude + condensate capacity 18 Mt/y Staff (incl. NC3) 1,026 Shift Personnel 48 % Contractors (outside Projects & TA) 450 m/d EDCI (Solomon) Refinery 3.84 Mb/d NC3 Naphtha throughput (in 2006) 1.4 Mt/y Surface area 220 ha Storage tanks & capacity Mm3 31 process units - 1 central control room Power station + cogeneration 11

12 Total Raffinaderij Antwerpen Production scheme Separation / Distillation Reaction / Conversion Purification Blending LPG Ethylene Naphtha Cracker Propylene Benzene Crude Oil Catalytic Reforming bpsd Aromatic Extraction Xylene Jet Fuel RAPL Crude Oil Atmospheric Distillation CDU3 & 4: bpsd Kero Merox bpsd Gas Oil Catalytic Desulphurisation HDS1-4: bpsd ETBE unit (Ethyl Tertiary Butyl Ether) Alkylation bpsd Gasoline Atmospheric Residue Desulphurisation ARDS: bpsd Catalytic Cracking FCCU1 & 2: bspd Clean Gasoline bpsd Fuel Oil Vacuum Distillation Visbreaker Bitumen 12

13 Total Petrochemicals Antwerp Site : FAO NC1: 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 contractors 13

14 Antwerp logistics integration Rotterdam Duinkerken North Sea Terneuzen (Dow) TRN Gent Oleochemicals Lubricants Moerdijk (Shell) Antwerpen TRA, FAO, TPA Brussels THE NETHERLANDS Beringen Liège Geleen (DSM) Rijin Marl GERMANY Gelsenkirchen (Veba) Keulen (Erdoelchemie) Frankfurt Feluy TPF, TPR Jemeppe (Solvay) FRANCE Ethylene Propylene Oil products Crude oil NATO Cambrai LUXEMBURG Ludwigshafen (BASF) 14

15 Antwerp: Refinery and Petrochemicals Complex butane, naphtha, Antwerp Refinery propylene from FCC, aromatics from reformer hydrogen, steamcracker gasoline, PFO, C 4 raffinate, hydrogen, fuel gas, utilities Antwerp Petrochemicals Plant 15

16 Total Antwerp Sites Synergies Synergies : 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

17 New developments

18 Growth in Petrochemicals 8 6 ETHYLENE 7, PROPYLENE 8,3 7,1 4,7 4,7 4 4,0 4,3 4 2,6 2,9 2,9 3,0 2 1,8 1,9 1,5 1,6 2 0 W.EUR. N.AMER. ASIA+ME WORLD 0 W.EUR. N.AMER. ASIA+ME WORLD % yagr % yagr 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

19 Growth in Petrochemicals BENZENE 6,5 5,7 6 4,5 3,9 3,5 4 2,7 1,8 2 1,1 2 5,0 P XYLENE 4,2 7,8 6,7 6,2 6,2 0 W.EUR. N.AMER. ASIA+ME WORLD 0 0,1 W.EUR. N.AMER. ASIA+ME WORLD % yagr % yagr Aromatics : mixed growth depending on the products Paraxylene : strong demand requiring recovery from refining flows 19

20 European demand for petroleum products Technological progress of motor engines Tax advantage maintained for diesel CO 2 issue favourable to development of diesel motor engines MT / year Gasoline Diesel Heating oil Heavy Fuel 20

21 Common strategy and objectives : To fulfil the latest product and environmental specifications To adapt productions to market trends Gasolines Olefins Distillates Aromatics Refinery Petrochemical site Stringent capital expenditure policy Minimising production costs: Utilities, logistics 21

22 Consolidating integration : Gasoline Olefins Extraction of aromatics Common desulphurisation of gasolines from FCC and steamcracker 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

23 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) ð ð 1 23 ð