Rarely Acknowledged Energy Benefits of Sulphur Recovery. Sulphur 2016 London, UK November 9, 2016

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1 Rarely Acknowledged Energy Benefits of Sulphur Recovery Sulphur 2016 London, UK November 9, 2016

2 AGENDA

3 AGENDA

4 INTRODUCTION

5 CRUDE OIL PRICE $140 $130 $120 $110 Crude Oil Price (US Dollars per Barrel) $100 $90 $80 $70 $60 $50 $40 $30 $20 Sep 2011 Sep 2012 Sep 2013 Sep 2014 Sep 2015 Sep 2016 WTI Brent Dubai Crude

6 PERSPECTIVES Sulphur recovery is a cost of production Sulphur plant is a net energy exporter Innovation is born out of adversity Producers who stay focused on efficient, cost effective operations during challenging times will evolve and become stronger

7 BENCHMARK PLANT

8 HYPOTHETICAL BENCHMARK SULPHUR PLANT Acid Gas Feed mol% kmol/hr H 2 S 60% 1,300 CO 2 30% 650 Hydrocarbon (as C 1 ) 1% 22 H 2 O 9% 195 Total 100% 2,166 Temperature, C 54 Pressure, barg 0.69

9 BENCHMARK PLANT KEY DESIGN PARAMETERS

10 BENCHMARK PLANT KEY DESIGN PARAMETERS

11 BENCHMARK PLANT KEY DESIGN PARAMETERS

12 BENCHMARK PLANT CASE A Acid Gas ACID GAS PREHEATER BURNER RF SRU WHB 1 st REHEATER 1 st CONVERTER 2 nd REHEATER 2 nd CONVERTER 3 rd REHEATER 3 rd CONVERTER BURNER INCINERATOR WHB Stack Gas Fuel COMBUSTION AIR PREHEATER 1 st CONDENSER 2 nd CONDENSER 3 rd CONDENSER 4 th CONDENSER INCINERATOR Air Sulphur Sulphur Sulphur Sulphur Air STACK CLAUS AIR BLOWER INCINERATOR AIR BLOWER LEGEND FUEL CONSUMER POWER CONSUMER HP STEAM PRODUCER HP STEAM CONSUMER LP STEAM PRODUCER LLP STEAM PRODUCER

13 BENCHMARK PLANT CASE B Acid Gas ACID GAS PREHEATER BURNER RF SRU WHB 1 st REHEATER 1 st CONVERTER 2 nd REHEATER 2 nd CONVERTER 3 rd REHEATER 1 st CBA REACTOR 2 nd CBA REACTOR COMBUSTION AIR PREHEATER 1 st CONDENSER 2 nd CONDENSER 3 rd CONDENSER Air CLAUS AIR BLOWER Sulphur Sulphur Sulphur Stack Gas 4 th CONDENSER BURNER INCINERATOR WHB LEGEND FUEL CONSUMER POWER CONSUMER HP STEAM PRODUCER Sulphur Fuel INCINERATOR HP STEAM CONSUMER LP STEAM PRODUCER LLP STEAM PRODUCER NOTE: Sub-dewpoint process is shown. Direct oxidation process would produce similar SRE. INCINERATOR AIR BLOWER Air STACK

14 BENCHMARK PLANT CASES C & D Acid Gas ACID GAS PREHEATER BURNER RF SRU WHB 1 st REHEATER 1 st CONVERTER 2 nd REHEATER 2 nd CONVERTER TGTU PREHEATER HYDROGENATION REACTOR QUENCH COLUMN QUENCH WATER AIR COOLER Air CLAUS AIR BLOWER COMBUSTION AIR PREHEATER 1 st CONDENSER Sulphur 2 nd CONDENSER Sulphur 3 rd CONDENSER Sulphur TGTU WHE QUENCH PUMP Quench Water Purge LEGEND FUEL CONSUMER POWER CONSUMER HP STEAM PRODUCER ABSORBER LEAN AMINE AIR COOLER LEAN/RICH EXCHANGER CONDENSER REGENERATOR REFLUX DRUM BURNER Fuel INCINERATOR WHB Stack Gas HP STEAM CONSUMER LP STEAM PRODUCER LLP STEAM PRODUCER INCINERATOR LP STEAM CONSUMER REBOILER Air STACK RICH AMINE PUMP LEAN AMINE PUMP INCINERATOR AIR BLOWER

15 BENCHMARK PLANT CASES E & F Acid Gas ACID GAS PREHEATER BURNER RF SRU WHB 1 st REHEATER 1 st CONVERTER 2 nd REHEATER 2 nd CONVERTER TGTU PREHEATER QUENCH COLUMN HYDROGENATION REACTOR QUENCH WATER TRIM COOLER QUENCH WATER AIR COOLER Air CLAUS AIR BLOWER COMBUSTION AIR PREHEATER 1 st CONDENSER Sulphur 2 nd CONDENSER Sulphur 3 rd CONDENSER Sulphur TGTU WHE QUENCH PUMP Quench Water Purge LEGEND FUEL CONSUMER POWER CONSUMER HP STEAM PRODUCER LEAN AMINE TRIM COOLER LEAN AMINE AIR COOLER LEAN/RICH EXCHANGER CONDENSER REGENERATOR REFLUX DRUM BURNER Fuel INCINERATOR WHB Stack Gas HP STEAM CONSUMER LP STEAM PRODUCER LLP STEAM PRODUCER INCINERATOR LP STEAM CONSUMER COOLING WATER CONSUMER ABSORBER REBOILER Air STACK RICH AMINE PUMP LEAN AMINE PUMP INCINERATOR AIR BLOWER

16 UTILITY CASE SRE A 97% BENCHMARK PLANT ENERGY BALANCE (MW) B 99.0% C 99.3% D 99.9% E 99.98% F 99.98% HP Steam LP/LLP Steam Fuel Gas Electric Power Cooling Water UNIT SRU TGTU INCINERATOR NET EXPORT/IMPORT COMPARISON TO CASE A % -27% -40% -203% -105%

17 BENCHMARK PLANT ENERGY BALANCE (MW)

18 BENCHMARK PLANT ENERGY KPIs CASE SRE A 97% B 99.0% C 99.3% D 99.9% E 99.98% F 99.98% kwh per Metric Ton S Produced +1,458 +1,401 +1, , kwh per Nm 3 H 2 S in Acid Gas Feed Every ton of S produced in Claus SRU generates ~1,400 kwh of thermal energy, but amine-based TGTU erodes this

19 REAL WORLD PLANT CASE STUDY

20 CASE STUDY BASIS

21 CASE STUDY KEY PROCESS PARAMETERS DESIGN ACTUAL EXPECTED Acid Gas Feed (Nm 3 /h) 82,035 50,208 50,208 Acid Gas H 2 S Content (mol%) Sulphur Production (MTPD) 1, Fuel Gas Co-firing (Nm 3 /h) 3,452 1, Preheat & Reheat Temperatures --- Slightly off-design Per design/optimized RGG Burn Stoichiometry (%) Solvent Concentration (% of design) Solvent Temperature ( o C) Incinerator Temperature ( o C) Stack Gas O2 Content (%)

22 CASE STUDY KEY DESIGN PARAMETERS Benchmark Plant (Case D) Real World Plant (Design Case) CAPACITY & KEY DESIGN CONDITIONS SRU/TGTU 1,000 MTPD 60 mol% H 2 S 99.90% SRE HP saturated steam (40 barg) LP steam (3.5 barg) Air cooling process temp. 50 o C (min) Air-only operation, without fuel co-firing HP steam air preheater 2 Claus beds with promoted activated alumina catalyst HP steam preheater in TGTU Low temperature hydrogenation catalyst Generic MDEA solvent Lean solvent temperature of 50 o C, via air cooling only 1,300 MTPD 46 mol% H 2 S 99.91% SRE (operated even higher) HP saturated steam (41.5 barg) LP steam (5.5 barg) Air cooling process temp. 59 o C (min) Air-only operation, with fuel co-firing Fuel-fired air preheater 2 Claus beds with promoted activated alumina catalyst TiO 2 layer in 1 st bed RGG in TGTU Conventional hydrogenation catalyst Highly-selective, proprietary solvent Lean solvent temperature of 49 o C, via air cooling + refrigerant trim cooling

23 CASE STUDY KEY DESIGN PARAMETERS Benchmark Plant (Case D) Real World Plant (Design Case) INCINERATOR 815 o C operating temperature 2% excess O 2 in stack gas HP saturated steam (40 barg) produced in incinerator WHB No sulphur pit ejector routed to incinerator 650 o C operating temperature 2.5% excess O 2 in stack gas HP steam superheating (400 o C) in incinerator WHB Rundown vessel vent routed to incinerator

24 OVERALL ENERGY KPIs 3,000 HP Steam LP Steam Fuel Gas Power NET Energy (kwh per Metric Ton of 'S') 2,000 1, ,000-2,000 1,865 1,799 1,610 1, ,182-2, , ,000-3,202-4,000 Design Actual Expected Case D

25 FUEL GAS KPIs Fuel Gas Energy (kwh per Metric Ton of 'S') ,000-1,500-2,000-2,500 Design Actual Expected Case D NET = NET = -1,182-1,150-1,804 NET = -2,264-3,000-3,500 NET = -3,202 Combustion Air Preheater Acid Gas Burner Reducing Gas Generator Burner Incinerator Burner

26 HP STEAM KPIs 2,500 Design Actual Expected Case D HP Steam Energy (kwh per Metric Ton of 'S') 2,000 1,500 1, NET = 1,865 NET = 1,799 1,885 1, NET = 1,460 1,620 NET = 1,610 1, ,000 Acid Gas Preheater SRU WHB TGTU Reactor Preheater Combustion Air Preheater 1st & 2nd Reheater HP Steam Superheater / Incinerator WHB

27 LP STEAM KPIs 1,000 Design Actual Expected Case D 800 LP Steam Energy (kwh per Metric Ton of 'S') NET = NET = NET = NET = st & 2nd Sulphur Condenser TGTU Hydrogenation WHE Regenerator Reboiler

28 ELECTRIC POWER KPIs 0 Design Actual Expected Case D Electric Power Energy (kwh per Metric Ton of 'S') NET = NET = NET = NET = Claus Air Blowers Pumps & Air Coolers Refrigeration System Incinerator Air Blowers

29 CASE STUDY SUMMARY

30 SUMMARY & CONCLUSIONS

31 SUMMARY & CONCLUSIONS Some operators already see and exploit the benefits of their sulphur recovery facilities.will you do the same?

32 EXAMPLE POWER FROM UAE SRUs CURRENT FUTURE Total S Production 19,000 MTPD 38,000 MTPD Claus Power 1,050 kwh/ton S (as HP Steam) 830 MW Thermal Power 500 MW Mechanical Power 1,050 kwh/ton S (as HP Steam) Total 1,660 MW Thermal Power Total 1,000 MW Mechanical Power SRU/TGTU Power ~50% Energy Consumed by TGTU 250 MW Mechanical Power 500 MW Mechanical Power ( w/ TGTU) 750 MW+ (other options?) Tail gas treating technology selection will significantly impact power generation potential of future sour gas projects

33

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