Challenges for proper implementation of residue upgrading processes within oil refineries

Transcription

1 Challenges for proper implementation of residue upgrading processes within oil refineries February 15, 2016 A. Blumenstock (Speaker), W. Hamschmidt, T. Streich

2 Agenda Process Technologies Oil refining and petrochemicals Measures and market - Bottom upgrading project Implementation of a residue conversion plant Increasing flexibility of the distillation plants Summary 2 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

3 Agenda Process Technologies Oil refining and petrochemicals Measures and market - Bottom upgrading project Implementation of a residue conversion plant Increasing flexibility of the distillation plants Summary 3 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

4 Industrial Solutions The new dimension in Plant Engineering Business Area Business Unit Marine Systems Process Technologies (former Uhde) Industrial Solutions Resource Technologies (former Polysius and Fördertechnik) System Engineering Submarines Surface Vessels Services Fertilizer/ Coke Plant Technologies Chemicals/Oil & Gas Services Mining Cement Services Assembly Systems Car Body Technology Lightweight Solutions Forming Dies Testing Solutions Services Regional Organizations Americas Europe MENA India CIS Asia Pacific Sub-Saharan Africa 4 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

5 Delivering true efficiency! Industrial Solutions develops reliable, long-term solutions together with its clients, to enable global industrial development while protecting scarce resources, by means of the combined power of 200 years of engineering excellence with German roots. 5 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

6 Agenda Process Technologies Oil refining and petrochemicals Measures and market - Bottom upgrading project Implementation of a residue conversion plant Increasing flexibility of the distillation plants Summary 6 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

7 Field of activities Overall value chain 1 Upstream Midstream Exploration 2 Production 3 Crude Transportation O Survey Exploratory Drilling Field Level Conventional Oil Processing (Drilling) Unconventional Oil Processing (Hydraulic Fracturing, Oil Shale, Oil sands, etc.) Crude oil / LPG transportation - Pipeline - Railcars - Trucks - Barges Downstream 4 Crude Prod. Product 5 Refining Storage 6 Storage 7 Transportation 8 Distribution Feed and product storage Broad range of Refinery processing - Pipeline - Tankers - Trucks - Railcars Sale to costumer (petrol stations, petrochemical companies) Main field of TKUES activities 7 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

8 Vacuum Distillation Crude Atmospheric Distillation Field of TKUES activities Oil Refining, Lube Oils and Waxes Lt. Naphtha HDT Hvy. Naphtha HDT C5 / C6 Isomerization Catalytic Reformer LPG Separation Merox Treater Ethylene / Propylene LPG BTX Steam Reformer H 2 Kero-/MD- HDS Kero-/MD- HDA Steam Cracker Butane Dehydrogen Butane Isomerization Catalytic Polymerization Gasoline Pool Amine Treating Sulphur Recovery VGO Hydrocracker C4 Selective Hydrogenation MTBE / ETBE Alkylation VGO HDS FCC FCN Selective HDS Diesel / Gas Oil H 2 Partial Oxidation Solvent Deasphalting Lube Hydrocracker Solvent Extraction Catalytic Dewax/Isom Solvent Dewaxing White Oil Hydrogenation Hydrogen Finishing Lube Oil Blending Technical / Medical White Oils Lube Oils Visbreaker Wax Hydroisomerization Wax Hydrogenation Food Grade Wax Residue HDT / HC Thermal Cracker/Coker Uhde or open art Technology References / Licensed by Others Heavy Fuel Oil Coke 8 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

9 Field of TKUES activities Petrochemistry: Olefins and solvents Propane Dehydrogenation (STAR) Propylene Purification Propylene IPA Propylene Isopropanol- Alcohol (IPA) Acetone (DMK) MIBK MIBK DMK DIPE DIPE Alkylate Ethylene Metathesis Alkylation Catalytic Polymerisation Polymer Naphtha i-butane Iso-Octane i-octane C4 Cut (Butenes) EtOH MeOH Selective Hydrogenation Butadiene Extraction MTBE ETBE TAEE SBA Butene Concentration MEK SBA MEK MTBE ETBE 1-Butene Butadiene TAEE C5 Cut (i-amylenes) TAME TAME DME DME Uhde or open art Technology References / Licensed by Others 9 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

10 Agenda Process Technologies Oil refining and petrochemicals Measures and market - Bottom upgrading project Implementation of a residue conversion plant Increasing flexibility of the distillation plants Summary 10 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

11 Strategic search for new trends Refinery investment drivers Re-construction & Revamps Change in Crude Quality Change in Product Slate Main drivers for investment Change in Product Specs New Regulations Total investments of refining industry (avg. Annual CAPEX): 4 5 bn Expected long-term trend: Decreasing overall fuel consumption Constant investments 11 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

12 Strategic search for new trends Opportunities Global Heavy Crude Proc. 1 LNG Demand Marine Sector 2 Global Sulphur Limit. 3 mio. b/d bil. m³/a [% w/w] Worldwide shift to heavier crudes Replacement of heavy fuels by LNG More stringent regulations to heavy fuel oils Focus on bottom upgrading processes Source: 1. Oil & Gas Journal (2010) 2. Gazprom (2011) 3. MARPOL 73/78 12 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

13 Strategic search for new trends Opportunities Distribution by Bottom Upgrading Processes Distribution by Coking Technologies 36% 5% 3% 3% 2% 6% 8% 8% 51% 78% Coking Fixed-bed hydroproc. Ebullated-bed Hydrocracking RFCC Visbreaking Solvent Deasphalting Delayed Coking Fluid Coking Other unspecified Source: Hydrocarbone Publishing 3Q, February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

14 Focus on Residue Upgrading Processes FLUID CATALYTIC CRACKER (FCC) Intermediate Product to further Processing in Refinery Vacuum Gas Oil Atm. Residue HYDROTREATER / HYDROCRACKER VISBREAKER PARTIAL OXIDATION Syngas Hydrogen Steam Power Vacuum Residue THERMAL GASOIL UNIT Heavy Fuel Oil DELAYED COKER Petroleum Coke SOLVENT DEASPHALTING BITUMEN OXDATION Bitumen Licensed by TK Licensed by Others; TK References 14 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

15 Agenda Process Technologies Oil refining and petrochemicals Measures and market - Bottom upgrading project Implementation of a residue conversion plant Increasing flexibility of the distillation plants Summary 15 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

16 Delayed Coker Unit (DCU) Project Up- and Downstream Plants Crude Oil Crude Oil Distillation Coker gas Power and Heat Generation; LPG Recovery Atmospheric Residue Vacuum Distillation DC Naphta Naphtha Hydrotreater Naphtha Vacuum Residue Delayed Coker Unit (DCU) Light Coker Gas Oil Middle Distillate Desulphurization Diesel Heavy Coker Gas Oil Hydrogen Desulphurization Marine Diesel Coke Power Station 16 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

17 Challenges for DCU integration Many pieces must fit together to form a coherent whole Revamp, modification or installation of complete new processing units like HDS/HDA/HT Implementation of ThruPlus Delayed Coker Unit (ISBL process plant) Revamp, modification or installation of associated utilities, offsite and auxiliary facilities 17 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

18 Heavy Fuel Oil Blending Vacuum Destillation Debutanizer LPG Recovery Splitter Desalter Atmospheric Distillation Heating Oil Blending Gasoline Blending ISBL. Considerations for Coker Implementation Naphtha HDS unstabilized Reformate Crude and Reformer Naphtha Fractionation Refinery Gas H 2 Catalytic H 2 Reformer Hydrogenation Isomerization C4 C5 Light Gasoline stabilized Reformate Isomerisate Fuel Gas C3 C4 Gasoline OSBL. MEA Sour Water Treatment Claus Kerosene HDS H 2 Steam Reformer (H 2 Plant) Aviation Fuel (Kerosene) Flare Gas Oil HDS HDS HDA C3 Fuel Gas Heating Oil Diesel Boiler Feed Water Steam Crude Oil Heavy Gas Oil Heavy FCC Gas Oil Light FCC Gas Oil C4 Cooling Water Fuel Gas H 2 Vacuum Gas oil Catalytic Cracker (FCC) HDS Electrical Power Vacuum Residue Cracker Residue FCC Naphtha Heavy Fuel Oil 18 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

19 Delayed Coker Unit Vacuum Destillation Debutanizer Coker Gas Cracked Naphtha Hydrotreater Splitter Light Coker Gas Oil LPG Recovery Desalter Atmospheric Distillation Heating Oil Blending Gasoline Blending ISBL. Considerations for Coker Implementation Naphtha HDS unstabilized Reformate Crude and Reformer Naphtha Fractionation Refinery Gas H 2 Catalytic H 2 Reformer Hydrogenation Isomerization C4 C5 Light Gasoline stabilized Reformate Isomerisate Fuel Gas C3 C4 Gasoline OSBL. MEA Sour Water Treatment Claus Kerosene HDS H 2 Steam Reformer (H 2 Plant) Aviation Fuel (Kerosene) Flare Gas Oil HDS HDS HDA C3 Fuel Gas Heating Oil Diesel Boiler Feed Water Steam Crude Oil Heavy Gas Oil Heavy FCC Gas Oil Light FCC Gas Oil C4 Cooling Water Fuel Gas H 2 H 2 Vacuum Gas oil Catalytic Cracker (FCC) HDS Electrical Power Vacuum Residue Atmospheric Residue Cracker Residue FCC Naphtha Heavy Coker Gas Oil 19 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock H 2 HDS Marine Diesel Coke WSA (H 2 SO 4 )

20 Considerations for Coker Implementation Additional units and expansion of existing units ISBL: Delayed Coker (CDU) new Marine Diesel Desulphurization (MDD) new Cracked Naphtha Hydrotreater (CNHT) new LPG Recovery including Caustic Wash/Water Wash or Merox new Crude and Reformer Naphtha Fractionation (CPL) revamp, modifications Naphtha Hydro Desulphurization (NHD) revamp, modifications Diesel Hydro Desulphurization / Dearomatization (HDS / HDA) revamp, modifications 20 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

21 Utilities Offsites Considerations for Coker Implementation Additional units and expansion of existing units OSBL PSA (H 2 ) unit expansion of existing PSA unit MEA (amine) absorbers new absorbers and modifications of existing absorbers MEA regeneration 1 new regeneration unit Sour water/process water revamp and 1 new sour water stripper Wet Sulphuric Acid Plant (WSA) new (alternatively revamp of Claus Plant) Coke Handling Unit new Coke Loading (ship / rail) new LPG Loading (rail) revamp depending on logistics BFW / Steam / Condensate revamp and 1 new demin water unit Cooling water 1 new circulation system with air cooler or cooling tower Instrument Air / Plant Air revamp, 1 new compressor (existing drying unit is sufficient) Flare new flare for new plants (DCU, MDD,) etc. and study of existing flare/ flare system Slop system extension Flushing oil system extension (new vessel and new pump) Biological waste water plant revamp 21 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

22 Consideration of Coker Implementation Total cost evaluation Implementation of residue upgrading processes within oil refineries ISBL - new Coker Invest Cost: ~40% 50% OSBL all existing units reflecting the Integration Invest Cost: ~ 50% 60% Challenge for modifying of crude oil processing (CDU and VDU) 22 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

23 Agenda Process Technologies Oil refining and petrochemicals Measures and market - Bottom upgrading project Implementation of a residue conversion plant Increasing flexibility of the distillation plants Summary 23 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

24 Increasing flexibility of the distillation plants Economic driven considerations for increasing crude oil processing flexibility Heavy Crude Oil The continuous rise of heavy crude oils production in the upstream industry requires modification of CDU/VDU sections Changes of feedstock quality The need of higher sulpher-rich and higher corrosive feedstock processing requires a specific material selection for long-term operation Demand of middle distillate Increasing of flexibility of Naphtha Cut point reduction reflects the higher demand of Diesel towards Gasoline /Naphtha Bitumen production Increasing of flexibility of VDU matching Bitumen product quality for high range of crude slates 24 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

25 Increasing flexibility of the distillation plants Example: Top1 / Vak1 Project for a client in Europe Units Crude oil Distillation Unit (CDU) Vacuum Distillation Unit (VDU) Objectives Increasing of middle distillate yield by means of Naphtha Cut Point reduction Processing crude oils currently not applicable Decreasing of Maintenance Cost Increasing the range of crude slates for Bitumen production in order to allow: Processing crude oils currently not applicable for Bitumen production Increasing of VGO yields Modifications of existing plants or new design Replacement of the column top (new design and material selection) Replacement of column trays (middle section of column) Additional new UCR System Modifications regarding the LGO withdrawal route (new LGO pump, new LGO cooler, etc.) Optimization of material selection New vacuum column, Replacement of relevant hot pumps (Vacuum Residue, VGO, etc.) Replacement of heat exchangers and air coolers new vacuum system (2 stages ejectors and liquid ring pump) 25 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

26 Agenda Process Technologies Oil refining and petrochemicals Measures and market - Bottom upgrading project Implementation of a residue conversion plant Increasing flexibility of the distillation plants Summary 26 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

27 Summary The worldwide crude slate has shifted to heavy and extra heavy feeds with high sulphur content. New maritime bunker fuel specifications with stringent emission norms for SOx and NOx increase the switch over from heavy fuel oil to clean combustion natural gas (LNG) Decreasing of the use of residue fuel oils in power production requires a further processing of Residues by producing more valuable distillate products. There is a growing drive to cost effectively maximize production from every barrel of crude oil processed. By integrating a Residue Upgrading Process there is a advantage of being able to process heavier and sulphur-rich feedstock and therefore reasonable priced crude oil. This requires a high flexibility of the distillation plants The new installation of a Residue Conversion Unit and the necessary revamp of existing plants constitutes a major challenge for refiners and engineering contractors 27 February 15, 2016 Egypt Downstream 2016 Challenges for proper implementation of residue upgrading processes within oil refineries A. Blumenstock

28 Thank you!