LD Parex TM Aromatics Complex: Lowest Cost of Production for PX Technology John Robertson Honeywell UOP 5 th IndianOil Petrochemical Conclave February 4, 2016 Mumbai, India A Century of Innovation in the Oil and Gas Industry 2016 UOP LLC. All rights reserved. UOP 7197-1
How Can UOP Further Reduce Your Paraxylene Production Costs? $/MT PX $/MT PX 1000 1000 Aromatics Complex Costs 800 800 600 600 400 400 200 200 0 0 2009-2010 Technology 2009-2010 Technology Energy Efficient LD Parex Aromatics Aromatics Complex Complex Energy Efficient Aromatics Complex Net Capital Feedstock Costs Capital UtilitiesCosts Fixed Costs Consumables Utilities LD Parex Aromatics Complex Capital Costs Utilities 2 UOP 7197O-2
Heavy Desorbent Has Been the Primary System Used for Selective Xylene Adsorption When UOP started licensing the selective px adsorption, or Parex, process in the 1970s, both heavy and light desorbent (LD) systems were used As energy prices continued to increase, our clients have continued to choose the heavy desorbent (HD) system for px separation - Based on our knowledge at the time, the HD system adsorbent had a lower desorbent to feed ratio (D/F) - A lower D/F enables less circulation and, therefore, lower utilities consumption Over the last 40+ years, UOP has gained extensive manufacturing knowledge from the production of a range of commercial adsorbents for xylenes separation - Adsorbent innovation primarily focused on HD system, since most prevalent - ADS-47 is well proven as providing a step change in adsorbent performance What if we take the knowledge we now have of the HD system adsorbent and apply it to an LD system? 3 UOP 7197O-3
UOP s Continuous Innovation Drives Down px Cost of Production Combining the extensive adsorbent manufacturing knowledge and experience with engineering advancements have enabled UOP to develop the LD Parex Aromatics Complex technology ADS-47 only required slight modification to make it compatible with a light desorbent system Removal of heavy desorbent enables separation efficiencies that allow for an optimized fractionation flow scheme - 20% less equipment and fractionation tray requirements reduces capital investment by 15-17% - Less constrained flow scheme enables same energy savings as the EEAC design, at a lower total investment cost - Flow scheme also enables flexibility to shift CAPEX savings to additional OPEX savings, depending on your needs Back to the Future 15-17% reduction in CAPEX combined with reduced OPEX of EEAC design enables lowest cost px production in the industry 4 UOP 7197O-4
Comparison of UOP Heavy & Light Desorbent Parex Systems Heavy Desorbent Light Desorbent First Year Licensed 1971 1972 Units Licensed 100 13 Desorbent para-diethylbenzene toluene Latest Adsorbent ADS-47 ADS-50; ADS-40 Aromatics Selectively Adsorbed para-xylene para-xylene; meta-xylene No. Chambers 2 2 No. Downstream Fractionation s 5 3 5 UOP 7197O-5
Removal Current Energy of the Heavy Efficient Desorbent Aromatics Allows Opportunity Complex (EEAC) for Optimized Design Fractionation ED Sulfolane Unit Raffinate Paraxylene Reformate Reformate Splitter Tatoray Unit Light Ends Benzene As Needed Make-up Desorbent Extract Paraxylene Finishing Paraxylene Uses Heavy Desorbent (p-deb) Desorbent taken as Raffinate & Extract Bottoms Xylene Fractionation requirements set by A 9 limit in Xylene overhead Energy reduced 20-40% by evaluating overall complex as a system and rearranging heat integration Xylene A8 Stripper No. 1 Raffinate light desorbent enables separation 1 efficiencies Xylene No. 2 Heavy Aromatics A8 Rerun Benzene-Toluene Compared to a heavy desorbent system, using that allow for an optimized fractionation flow Parex scheme, enabling high energy Unit efficiency at a significantly reduced cost. Desorbent Makeup Deheptanizer Light Ends Isomar Unit Raffinate Raffinate 2 Desorbent Rerun Note: s are to scale Heavy Aromatics Rectifier Heavy Aromatics Heavy Aromatics 6 UOP 7197O-6
LD Parex Aromatics Complex Design ED Sulfolane Unit Raffinate Paraxylene Reformate Uses Light Desorbent (Toluene) Desorbent taken as Raffinate overhead & Extract sidedraw A 9 limit in XC overhead no longer a design constraint Overall complex still evaluated as a system to increase heat integration and reduce energy input A8 Stripper Reformate Splitter Tatoray Unit A8 Rerun Light Ends Benzene As Needed Make-up Desorbent Extract The 3 main Benzene-Toluene components of the LD Parex Aromatics Complex system are all commercially proven & reliable: 1. Desorbent Note: s are to scale Heavy Aromatics 7 UOP 7197O-7 Parex Unit 2. Adsorbent 3. Heat Integration Heavy Aromatics Rectifier Isomar Unit Raffinate Paraxylene
UOP s 45 Years of Sorbex Technology Spans the Globe US: 7 HD 3 LD Mexico: 1 HD LA: 1 HD New LD Parex Unit Announced: 600 KMTA PX Project in China Using UOP s New LD Parex Design for 2016 Construction EU: 14 HD 2 LD Russia / CIS: 3 HD China: 21 HD 2 3 LD ME: 8 HD 1 LD India: 7 HD Korea: 12 HD 2 LD OAP: 11 HD 1 LD Japan: 10 HD 1 LD Taiwan: 5 HD 1 LD HD - Heavy Desorbent LD - Light Desorbent UOP s Sorbex technology includes 100 HD & 13 14 LD Units with more than 1,600 operating years of experience 8 UOP 7197O-8
Light Desorbent Systems are Well Proven Technology Light Desorbent Parex Meta-Xylene Sorbex * Operating with initial adsorbent load Location Startup Year Operating Years France 1972 43 Texas 1974 41* Texas 1998 17* Korea 1998 17* Texas 1998 17* Singapore 1998 17* China 1999 16* Spain 2007 8* Korea 2008 7* Japan 2010 5* Taiwan 2011 4* China 2017 Middle East 2017 LD Parex Aromatics Complex design builds upon decades of reliable operating experience that only UOP holds 9 UOP 7197O-9
Technology Evolution Transforms Prior Inventions into Economical Solutions Thomas Parker Electric Car 1884 Ford Model T 1908 Tesla Model S 2009 ADS-4 (Parex - Light Desorbent) 1972 ADS-7 (Parex - Heavy Desorbent) 1980 ADS-50 (Parex - Light Desorbent) 2015 10 UOP 7197O-10
Continuous Innovation Translates across Both Heavy & Light Desorbent Systems Heavy Desorbent Adsorbent Portfolio Light Desorbent Adsorbent Portfolio 2011 ADS-47 ADS-47 Series 2015 ADS-50 1990 ADS-27 1980 ADS-7 1971 ADS-3 2004 ADS-37 ADS-3 Series ADS-27 Series 1996 ADS-40 ADS-23 1972 ADS-4 In 44 years of licensing the Parex process, all production capacity & product quality guarantees have been achieved 11 UOP 7197O-11
ADS-47 Series Adsorbent Provides Dramatic Performance Improvements 1 0.9 0.8 0.7 Relative Requirement to Process Same Amount of Feed Adsorbent Desorbent Parex Design Benefits from ADS-47 Adsorbent chamber reduced by 35% Desorbent circulation reduced by 32% Highest commercially proven reliability Successful operation in 10 units starting in 2011 0.6 0.5 ADS-7 ADS-27 ADS-37 ADS-47 Heavy Desorbent Adsorbent Portfolio Latest Generation Light Desorbent Adsorbent Significant breakthrough in paraxylene separation adsorbent technology provides ability to improve light desorbent economics 12 UOP 7197O-12
Heat Integration Technology Based on Energy Efficient Aromatics Complex Design As with EEAC design, overall complex evaluated as a system to increase heat integration and reduce energy input LD Parex simplified fractionation scheme enables: - Capital savings in addition to energy savings - Flexibility to shift capital savings to additional energy savings Location Startup Year Capacity, KMTA Korea 2014 1,000 Korea 2014 1,000 Korea 2014 1,400 Middle East 2017 1,440 China 2018 800 Middle East 2020 1,440 All components of the LD Parex Aromatics Complex design are well proven & reliable 13 UOP 7197O-13
CAPEX LD Parex Aromatics Complex Offers Lowest Cost PX Production EEAC 2011 20 40% OPEX Reduction Conventional 1971 15-17% CAPEX Reduction LD Parex Aromatics Complex 2015 OPEX Reduction and CAPEX Reduction Energy Consumption LD Parex Aromatics Complex Combines Step-Change Improvements in Capital AND Energy Efficiency 14 UOP 7197O-14
LD Parex Aromatics Complex Drives Step-Change Improvement in Capital Efficiency 20% less equipment results in: - 15 17% lower estimated erected cost - 20% lower steel weight - 25% less plot space - Reduced EPC schedule risks - Decreased maintenance costs 7% less adsorbent Expensive external desorbent supply eliminated Total plant inventory reduced by 24% - $8 MM NPV contribution from lower working capital - $1/MT PX reduction in operating cost Maintains industry leading energy efficiency Net result 3-7% improvement in IRR Equipment Type Delta Major s* - 4 Other Vessels -2 Heat Exchangers -6 Tanks -2 Pumps -2 Total -16 *Fractionation Trays -185 Combination of reduced capital investment and energy costs enables lowest cost px production 15 UOP 7197O-15
LD Parex Technology Saves 20% in Steel Weight Reference 120.0 Total Steel Weight by Process Unit 100.0 80.0 60.0 40.0 20.0 20% Weight Reduction Extractive Xylene Fractionation Distillation B-T Isomerization Fractionation Transalkylation PX Purification PX Transalkylation Purification Isomerization B-T Fractionation Xylene Fractionation Extractive Distillation 0.0 Next Best Alternative Basis: 1200 KMTA PX Complex LD Parex Aromatics Complex Results Confirmed in 2014 by Major Western EPC LD Parex Complex reduces the total steel weight of vessels by 20% 16 UOP 7197O-16
Independent Cost Savings Analysis by Major Western EPC Decreased Investment Costs Process Unit Comparison (1200 KMTA PX) Extractive Distillation Next Best Alternative LDPX Delta (%) +12% B-T Fractionation -0% Transalkylation -6% Base PX Purification -2% Isomerization -39% Xylene Fractionation -46% Total -17% 1,200 kmta px complex; USGC basis: Equipment Cost Savings = 17% Total Installed Cost Savings = 15% Equipment Cost Comparison, Breakdown by Unit Next Best Alternative 17% equipment cost savings Extractive Sulfolane Distillation B-T Fractionation Transalkylation Tatoray PX Parex Purification Isomerization Isomar Xylene Fractionation Xylene Fractionation LD Parex Aromatics Complex 20% reduction in equipment results in 15-17% capital savings, as confirmed by a major western EPC 17 UOP 7197O-17
Simplified, Less Constrained Design Provides Significant Advantages Less equipment and elimination of external desorbent supply results in less liquid inventory - Enables easier, faster startup and shutdown No desorbent treatment requirements Flexibility to divert liquid inventory without losing expensive desorbent - Minimizes potential environmental exposure 15-20% reduction in flare loads Ability to use HP Steam in place of fuel - Elimination of major fired heaters further improves safety - Enables even larger flare load reduction - Provides further plot space reduction Technology advancements enable safer, more reliable and environmentally friendly design 18 UOP 7197O-18
Lower CAPEX & OPEX Drives Greater Return on Investment NPV ($MM) 2500 2000 Basis: 2000 KMTA PX Complex LD Parex Aromatics Complex Next Best Alternative 2009-2010 Technology 1500 +$530 MM Higher NPV Compared to 2009-2010 Design +$115 MM Higher NPV Compared to Next Best Alternative 1000 500 +8% IRR Compared to 2009-2010 Design +3% IRR Compared to Next Best Alternative 0-500 0 5 10 15 20 25 30 35 40 Typical Hurdle Rate Discount Rate (%) Recent technology enables most economical px production 19 UOP 7197O-19
LD Parex Process Enables Profitable px Investments, Even in Down Cycles IRR (%) / Probability (%) 60 Probability Basis: 2000 KMTA PX Complex 50 2009-2010 Technology 40 30 20 10 0 Expected Value = $401/MT Typical Hurdle Rate 0 200 400 600 800 PX - Feed Spread ($/MT) PX (contract) Naphtha (spot) Spread Probability: Normalized distribution of annual IHS data from last 15 years 20 UOP 7197O-20
LD Parex Process Enables Profitable px Investments, Even in Down Cycles IRR (%) / Probability (%) 60 50 Probability LD Parex Aromatics Complex Next Best Alternative 2009-2010 Technology Basis: 2000 KMTA PX Complex 40 30 20 Typical Hurdle Rate 10 0 Expected Value = $401/MT 0 200 400 600 800 PX - Feed Spread ($/MT) PX (contract) Naphtha (spot) Spread Probability: Normalized distribution of annual IHS data from last 15 years Provides Capability of Maintaining Profitability at px-feed Spreads Lower Than $200/MT! 21 UOP 7197O-21
Leveraging Historically Proven UOP Technology for Your Future Success UOP s 45 years of experience with adsorptionbased separation technology in >100 operating units enables us to lead the market in innovation ADS-47 is a significant breakthrough in px separation technology, making the light desorbent technology economically viable The 3 major components of the LD Parex Aromatics Complex design desorbent, adsorbent and heat integration are all commercially proven & reliable First LD Parex Complex in Schedule A for 2016 construction Solution enables a step-change improvement in capital efficiency while still maintaining the industry-leading energy efficiency Gain the greatest return on your investment for your by choosing 22 the lowest cost of px production technology available UOP 7197O-22
Q&A 23 UOP 7197O-23