Solvent Deasphalting Conversion Enabler

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Kevin Whitehead Solvent Deasphalting Conversion Enabler 5 th December 2017 Bottom of the Barrel Workshop NIORDC, Tehran 2017 UOP Limited

Solvent Deasphalting (SDA) 1 Natural Gas Refinery Fuel Gas Hydrogen Plant H2 Saturated Gas Plant LPG Isom Unit Isomerate LPG Sales Naphtha Hydrotreating Unit NHT Splitter H2 LPG Gasoline Sales Crude Oil C D U SR Kerosene SR Light Gasoil H2 DHT Unit Jet CCR Unit Reformate Kerosene Sales Diesel Wet Gas + LPG to Sat Gas Plant HCU Naphtha Diesel Sales H2 HCU Kerosene DAO HCU HCU Diesel At Res V D U VGO SDA Unit UCO Bitumen Sales Vac Res SDA Pitch Fuel Oil

Agenda 2 Impact of heavy feeds on hydrocracking unit Solvent Deasphalting process reduces contaminants in residue streams Case study: Residue upgrading by SDA-HC

3 Residue Streams are Challenging to Process Contaminant levels increase with boiling range in most crudes Residue streams typically contain high sulphur, nitrogen, Conradson carbon, organometals and asphaltenes Stream Atmospheric Residue Vacuum Residue Sulphur, ppm wt 2.3 3.0 Nitrogen, ppm wt 2600 4000 Conradson Carbon, %wt 8 16.3 Ni + V, ppm wt 83 164 Asphaltenes, %wt 1.5 3.1

Impact of Feed Contaminants on HC Unit Operation 1. Sulphur: Converts to hydrogen sulphide over hydrotreating catalyst. Competes for active sites on hydrocracking catalyst, reducing activity 4 2. Nitrogen: Converts to ammonia over hydrotreating catalyst. Reduces activity of hydrocracking catalyst 3. Conradson Carbon: Increases coke formation and shortens catalyst cycle 4. Metals Content: Vanadium and Nickel are catalyst poisons 5. Asphaltenes: Indicative of heavy polynuclear aromatics (HPNA) precursors in the feed. Moderate levels cause rapid deactivation of catalyst and short cycle length. SDA reduces contaminants to Hydrocracker

Solvent Deasphalting (SDA) Process 5 Licensed technology for reduction of contaminants in feedstocks such as AR, VR by physical separation Reduces the contaminant (sulfur, nitrogen, Conradson carbon, asphaltene and Ni+V) contents of feedstocks to produce: - Deasphalted Oil (DAO) containing lower levels of contaminants - Pitch containing most of the feed contaminants Light liquid paraffins (typically C3 to C5 range) precipitate asphaltenes and resins from heavy oils Separation of DAO and solvent under either subcritical or supercritical conditions Combines commercially-proven process technology with proprietary extractor internals

Selectivity in Solvent Deasphalting 6 Sulfur, Conradson Carbon and Metals Appearing in Deasphalted Oil, % 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 Typical Operating Range 40 50 60 70 80 90 100 Deasphalted Oil Yield, Vol-%

SDA Process (Two-Product Configuration) 7 Vacuum Residue Charge Extractor DAO Separator Steam Steam Pitch DAO

SDA Process (Three-Product Configuration) 8 Vacuum Residue Charge Extractor Resin Settler DAO Separator Steam Steam Steam Pitch Resin DAO

Uses for SDA Pitch 9 Fuel for steam / power generation Fuel for cement manufacturing Bitumen manufacturing

SDA Commercial Experience 10 Combination of UOP and Foster Wheeler technology First unit licensed in 1973 >45 units licensed with a combined capacity of >650,000 BPSD Both 2 product and 3 product configurations in successful operation

SDA Technology is Highly Cost Effective 11 Low capital cost - Carbon steel equipment - Low pressure - No compressors Potential for very high local content Low solvent consumption and cost - Solvent typically C4s from refinery LPG system Low Cost High Effectiveness

12 Case Study: Upgrading by SDA - Hydrocracking Two stage hydrocracking unit licensed by a competitor - Feed 25% DAO, 75% heavy VGO - Full conversion - Maximum kerosene and diesel

Initial Operating Cycles Highlighted Challenges with DAO Processing 13 HPNA = Heavy Poly Nuclear Aromatics Compounds with 7+ aromatic rings, e.g. tribenzcoronene First 9 cycles used competitor catalyst Average cycle length ~12 months Severe fouling of heat exchangers led to heater limiting unit Fouling of second stage catalyst top bed caused high pressure drop Deactivation of cracking catalysts from HPNAs DAO contains high levels of HPNA pre-cursors

Why are HPNAs Important? 14 Raw Feedstock Precursors Condensation Reactions HPNAs on Catalyst Surface Forms Coke Fouls Downstream Equipment

UOP Catalyst & HPNA Management Technology Installed 15 UOP catalyst loaded in Cycle 10 - Catalysts with proven track record in DAO service - Supported with pilot plant work UOP HPNA-RM TM module installed on recycle to second stage during cycle 10 - Carbon bed technology to absorb HPNA

Step Change Improvement in Cycle Length 16 Improvement achieved by: - Implementation of HPNA management technology - Catalyst system improvements - Continuous development of the unit by the refiner (e.g. filters, exchangers)

Significant Improvement in Unit Performance 17 Capacity increased by 42% Cycle length increased by >300% - at higher feed capacity Refiner chose UOP catalysts for all following cycles Operation now limited by factors outside unit UOP HPNA management is proven enabler for SDA-HC scheme

Summary - Benefits of adding SDA HC Complex to an Existing Refinery Scenario: - 100,000 bpsd refinery with existing vacuum distillation and recycle hydrocracking unit - Add a new SDA unit - Revamp the hydrocracker - full conversion at higher capacity 18 Project provides significantly higher refinery profitability - 40% decrease in fuel oil - 12% increase in refinery Euro V diesel production - Increase value of refinery products by around 170 million $/year - Payback on capital cost <4 years Optimisation of SDA HC complex requires specialist knowledge - Balance fuel oil upgrading with impact on hydrocracker - Ensure pitch properties meet requirements for proposed use - Managing HPNAs is critical to successful operation UOP has proprietary technology to achieve this Basis: EuroV diesel 61.9 $/bbl, Fuel Oil 21.6 $/bbl

19 The information contained in this presentation is provided for general information purposes only and must not be relied on as specific advice in connection with any decisions you may make. UOP 7200-19 UOP 7116-19