Upgrade Bottom of the Barrel to Improve Your Margins

Transcription

1 Agafeev Viacheslav OOO UOP, A Honeywell Company Upgrade Bottom of the Barrel to Improve Your Margins November 2016 CIS Downstream Summit 2016 Vienna, Austria UOP UOP LLC. A Honeywell Company All rights reserved.

2 Summary of Presentation Market Drivers Key Factors and Considerations UOP BOTB Technology Portfolio Uniflex process Economics UOP

3 Residual Fuel Oil Demand has Declined Dramatically 3 RESIDUAL FUEL OIL DEMAND (1990 to 2012) MiTPA 150 EUROPE 150 FSU Source: BP Statistical Review of World Energy 2012 UOP Demand in Europe has fallen to half the level it was 20 years ago FSU RFO demand was higher than in Europe it is now lower

4 Combined Impact of Export Duty Change and Declining Demand on Residue Production 4 Exports RFO market is changing due to: Russian duty changes impacting export margins Natural gas usage in power plants Introduction of tighter specification for marine (bunker) fuels Upgrading to gasoline and diesel: Provides margin uplift Reduces supply gap for gasoline Supports profitable diesel exports Forecasts predict that up to 50 million tonnes per annum of residue will be converted to distillates through to 2020, with the current focus on VGO upgrading UOP

5 5 What Is Residue and Why Convert It? It is: Heavy, low-value material left after distillation Stable, of high MW, carbon rich and hydrogen deficient High proportion of aromatics and asphaltenes High in sulfur, nitrogen and heavy metals Classic solution: Burn in power plant However natural gas is winning that market because of: Price, availability, less SOx, NOx and Carbon footprint Residue upgrading to distillates is a compelling solution

6 These impact on both the BOTB scheme concepts and detailed configurations Six BOTB Factors are Specifically Relevant in Russia 6 1 Often process a single crude oil (REB / Urals) 2 Most Refineries are located Inland (not Coastal) 3 Access to Low Cost Natural Gas (Fuel & H 2 ) 4 Netback Pricing (Driven by Logistics CED and PEDs) 5 Transitioning to tighter Quality Specs 6 Need to factor in climate (Winter and Arctic Diesel)

7 Distillation UOP s Heavy Oil Upgrading Processes 7 Naphtha Naphtha Hydrotreating & Reforming Distillates Distillate Hydrotreating Crude Oil Vacuum Gas Oil FCC or Hydrocracking Transportation Fuels: Gasoline, Jet Fuel, Diesel Vacuum Residue Residue Upgrading UOP Solutions for Residue Upgrading Residues: Heavy Fuel Oil, Pitch, Coke UOP RCD Unionfining Process UOP/FWUSA Solvent Deasphalting FWUSA SYDEC Delayed Coking Process UOP/FWUSA Visbreaking UOP Uniflex Process UOP

8 UOP Solutions for Residue Conversion (Low to moderate conversion options) 8 UOP RCD Unionfining Process UOP/FWUSA Visbreaking FWUSA SYDEC Delayed Coking Process Limited conversion LS fuel oil production or RFCC feed prep Niche application Difficult to justify for LS fuel production when natural gas is low cost Up to 40% conversion with vacuum flasher Achieves reduction in cutter stock for fuel Can be a partial fix, not a full solution Fuel oil outlet needed Higher conversion - up to 75% Product require further upgrading to meet finished product specs Need an outlet for the product pet coke UOP

9 DAO yield typically %, limited by DAO quality and at very high lifts by pitch quality UOP / FWUSA Solvent Deasphalting 9 De-Asphalted Oil (DAO) feed to: FCC HCU Vacuum Residue (VR) SDA Not a conversion process, but a solvent / gravity based separation process Separation is also driven by the molecular type - paraffins vs aromatics SDA Pitch feed to: Bitumen Boiler / Power DCU Uniflex Unit

10 UOP s Residue Upgrading Experience 10 Visbreaking: Over 50 units licensed Solvent Deasphalting: 19 SDA units (after 1994) Coking: Over 70 units licensed SYDEC technology is the most successful Resid Hydrotreating: 27 units licensed, 65% of the world s total Wide range of feedstocks and applications Uniflex Slurry Hydrocracking: Acquired by UOP from CANMET 5000 bpsd PDU operated for 15 years UOP

11 The UOP Uniflex Technology Offering is Once through Catalyst Product streams require further upgrading Vacuum Residue Feed 100 UNIFLEX UNIT (Wt-%) H 2 S, NH 3 Gas, LPG Naphtha Diesel HDT 90-95% Conversion Maximum Diesel Minimum VGO Catalyst H VGO Pitch MHC & FCC or HCU UOP

12 12 UOP Uniflex Process Commercial Experience: 5,000 BPD unit operated for 15 years at Petro-Canada Montreal Developed excellent design correlations Very high reliability demonstrated UOP Enhancements: Completed UOP Schedule A design Petro-Canada Montreal Unit experience with improvements Single train designs parallel reactors, common separation High conversion of HVGO Integrated pilot plant closely matches commercial performance UOP

13 Petro-Canada Montreal CANMET Unit Reactor Section 13 UOP

14 Uniflex Process Thermal Cracking of Asphaltenes 14 The process benefits from combination of: 1. Thermal cracking to shorter chain lengths 2. Inhibiting formation of coke through: Hydrogenation of free radicals from thermal cracking Catalyst physically hinders mesophase coalescence Archipelago Model of Asphaltenes, Carbon # = 313, MW = 4705 Source: M. Gray, Univ of Alberta UOP

15 Uniflex Process Reactor Achieves Higher Conversion 15 Products and Catalyst Improved design for higher conversion Upflow High temperature and moderate pressure Efficient utilization of reactor volume Reduced gas voidage Higher product vaporization Near Isothermal Asphaltene management Inhibit formation of coke pre-cursors Feed, H 2 and Catalyst Simple (no internals) highly effective performance and Commercially proven Reactor design

16 Uniflex Configurations Vacuum Residue Feed H 2 S/ Gas / LPG 16 VDU 100 Uniflex HDT Naphtha Gasoil LVGO HVGO Pitch 5-10 Light naphtha to gasoline Heavy Naphtha, reformer feed quality Gasoil, Euro V LVGO to existing HCU or FCC Base Case No need for new HCU / FCC UOP

17 Uniflex Configurations SDA Pitch as Feed DAO 40 H 2 S/ Gas / LPG 17 VDU 100 SDA 60 Uniflex HDT Naphtha 9-11 Gasoil LVGO 6-9 HVGO Pitch 5-7 Light naphtha to gasoline Heavy Naphtha, reformer feed quality Gasoil, Euro V DAO, LVGO to HCU or FCC Pitch to CFB, cement Smaller Uniflex Separate new HCU or FCC UOP

18 18 Catalyst Supply and Pitch Disposal... Catalyst UOP global supply of catalyst Multiple manufacturing locations Simple logistics and storage Cement: Often an attractive outlet option Boiler/Power: Conventional power plants CFB Solidification: Pitch Proven technology Facilitates transportation and storage UOP

19 19 UOP Uniflex Process - Licensed Units Update Uniflex Commercial Reference List Location Unit Capacity (bpsd) Year Licensed Canada 5,000 N/A Project Status Decommissioned in 2013 Year of Start-up 1985 Pakistan 9, Completed BEDP 2017/2018 China 18, Completed BEDP / Detailed Engineering 2017 Russia 7, Completed BEDP 2017/2018 China 16, China 18, China 16, KO meeting expected in 2016 KO meeting expected in 2016 KO meeting expected in UOP

20 High crude oil prices make an even greater case for Uniflex technology, offering attractive economic returns Uniflex Process Key Success Factors 20 Commercially Proven Low Value Feed Higher Conversion Higher Quality Products Step Change Margin Increase

21 Uniflex cases typically offer a doubling of a refinery or even higher uplift in Russia due to the revised product export duties 21 Uniflex Complex Indicative Upgrading Economics Refinery Margin ($/BBL) Uplift 0.9 Margin 1.4 Uniflex Case Typically Doubling the Margin Existing Refinery With Uniflex Project

22 22 Questions & Answers UOP