Residue Upgrading Technologies Key Technologies, Considerations & Options for your Refinery Russia BBTC 2015 MOSCOW

Transcription

1 Residue Upgrading Technologies Key Technologies, Considerations & Options for your Refinery Russia BBTC 2015 MOSCOW Colin CHAPMAN April 2015 Euro Petroleum Consultants

2 PRESENTATION SUMMARY - RUSSIA BBTC 2015 MOSCOW BRIEF MARKET OVERVIEW OIL DEMAND & OIL PRICE RESIDUE UPGRADING DRIVERS RESIDUE UPGRADING OPTIONS TECHNOLOGIES FOR RESIDUE UPGRADING PROJECT STATUS & TECH SELECTION SUMMARY & CONCLUSIONS 2

3 BRIEF OVERVIEW OF REFINING SECTOR FOCUS ON EUROPE Low refining margins trend continues Major oil companies plant closures & selling of assets Some growth in diesel demand Flat or declining demand for gasoline Reduced imports to the region Changes to Bunker fuel specs 3

4 BRIEF OVERVIEW OF REFINING SECTOR FOCUS ON NORTH AMERICA Shale gas & tight oil heralded new era for NA refining NA refiners increased their profit margins Favorable conditions encouraged refinery capacity expansion and increased oil product export. Lighter crudes. Challenges for Refiners Impacted ME, Russian & European refiners Tougher times ahead with low crude oil price 4

5 BRIEF OVERVIEW OF REFINING SECTOR RUSSIA FOCUS Changing Export tariffs. Need to address changing Global markets. Impact of US and ME Projects Changing Fuel Oil & Bunker markets. Gas replacing Fuel Oil for Power Generation. Increased conversion for Improved margins. Need latest technologies & equipment to meet specific regional market demands. 5

6 WHAT WILL HAPPEN TO OIL PRICE IMPACT ON REFINING Crude price - 10 month fall Jun 2014: 110 $/Bbl Apr 2015: $/Bbl Resid Upgrading projects need large Investments There are many uncertainties, so running a number of scenarios when considering new investment is absolutely essential 6

7 SPECIAL CHALLENGES RESIDUE UPGRADING RUSSIA & CIS COUNTRIES Company procedures Inefficient procurement processes Lack of project experience Difficult logistics & climatic conditions Transportation issues with large equipment LOCAL STANDARDS versus WESTERN ( Licensor requirements) Project implementation strategies 8

8 RESIDUE UPGRADING OPTIONS IMPORTANT QUESTIONS: Market needs & opportunities Max Gasoline or Diesel? Outlet for Petcoke or Anode Coke? Power Generation? Use of unconverted materials? What are the budget constraints? How to best integrate with existing refinery units? ALL ISSUES TO BE STUDIED IN EVALUATE PHASE 9

9 TECHNOLOGIES FOR RESIDUE UPGRADING FOCUS ON DELAYED COKER Most installed Residue Upgrading process: Process has evolved over the years: Safety Wide ranging feedstocks Product slate: Gas Naphtha Gasoils Coke Sound Economics 10

10 TECHNOLOGIES FOR RESIDUE UPGRADING FOCUS ON EBULLATING BED PROCESSES Technology licensed by: Axens H-Oil process CLG LC-fining Proven technology with a significant number of commercial units. Conversion levels: typically 50 85% Combined with other technologies: EB with Delayed Coking. 11

11 TECHNOLOGIES FOR RESIDUE UPGRADING FOCUS ON SLURRY HYDROCRACKING PROCESSES UOP Uniflex process 5 licenses including 1 st in Pakistan KBR VCC process 4 recent licenses In Russia & China notably 1 st unit started-up end 2014 china ENI slurry HCK ENI process Unit at Sanazzaro has started up last year RAS/CLG Demo plant to be installed at Tatneft 12

12 PROJECT STATUS & TECHNOLOGY SELECTION PROS & CONS Process PROS CONS Delayed Coking Flexicoking EB Hydrocracking Slurry Hydrocracking Lots of experience in Russia and world-wide Fully proven Good product qualities Full conversion. Good product qualities Fully proven Can combine with Coking Good value product yields Highest Conversion Petcoke Power production or Sales Flexigas no transportation, can be used locally only. Need special equipment. Residue Blending to meet LSFO spec or Power production onsite Only ~70% conversion Little relevant operating 13 experience

13 PROJECT STATUS & TECHNOLOGY SELECTION RUSSIA & CIS Many clients have selected Delayed Coking options: Naftan, Perm, Volgograd,Orsk, & Flexicoker at Tuapse & Moscow. Ebullating bed options have been selected for Lukoil Bourgas, Lukoil NNOS & Mozyr. Slurry hydrocracking [VCC] selected for TAIF. 14

14 SUMMARY & CONCLUSIONS There is a strong need for many refiners to increase conversion. Choice of configuration & technology will require in depth study to evaluate which scheme best fits your requirements for markets & budget. Need to follow closely the ongoing projects underconstruction to see results. Selected project implementation strategy will be key to success. Multi technology option provides a number of alternatives to a single process unit approach 15

15 Thank you for your attention The information upon which this presentation is based comes from our own experience, knowledge and databases, supplemented by reference to primary sources and published industry data. Any opinions expressed are those of the author as of this date. They have been arrived at following careful consideration and enquiry but we do not guarantee their fairness, completeness or accuracy. We do not accept any liability for your reliance upon them. Euro Petroleum Consultants is a specialist consultancy firm working in oil, gas and petrochemicals. We offer technical consultancy and we also deliver high quality training courses and conferences. For further details contact colin_chapman@europetro.com 16