Integrating Refinery with Petrochemicals: Advanced Technological Solutions for Synergy and Improved Profitability Global Refining & Petrochemicals Congress 25th - 26th May, 2017 Mumbai, India Anil K. Sarin A World of Solutions
Safe Harbor Statement This presentation contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases, or expressions such as achieve, forecast, plan, propose, strategy, envision, hope, will, continue, potential, expect, believe, anticipate, project, estimate, predict, intend, should, could, may, might, or similar forwardlooking statements, we refer you to the cautionary statements concerning risk factors and Forward-Looking Statements described under Risk Factors in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2016, and any updates to those risk factors or Forward-Looking Statements included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference. A World of Solutions 1
PRESENTATION OUTLINE About CB&I Refining business scenario in India Considerations for refining & petrochemicals integration Indmax RFCC technology features ARDS technology features Olefins conversion technology features Refinery and petrochemical configurations/schemes Case study results and summary A World of Solutions 2
OVERVIEW Leading provider of technology and infrastructure for the energy industry 125+ years of experience and expertise in reliable solutions $19.3 billion backlog (Mar. 31, 2017) More than 40,000 employees worldwide Relentless focus on safety: 0.00 LTIR (Mar. 31, 2017) A World of Solutions 3
CB&I HISTORY 4
EXPERIENCE AND GLOBAL REACH 125+ years 100+ years 50+ years 70+ years 70+ years 75+ years 75+ years 5
DIVERSIFICATION ACROSS ENERGY INFRASTRUCTURE 6
BREADTH OF SERVICES Technology Licensed technology Proprietary catalysts Technical services Engineering & Construction Engineering Procurement Construction Commissioning Fabrication Services Fabrication & erection Process & modularization Pipe fitting and distribution Engineered products Specialty equipment Capital Services Program management Maintenance services Remediation and restoration Emergency response Environmental consulting 7
REFINING BUSINESS SCENARIO IN INDIA Process heavier opportunity crudes Upgrade bottom-of-the barrel Decrease bottoms while improving crude diet flexibility Reduce production of lower value products Polymers consumption in India 7.6 kg per Capita versus 35 (world average) Polymer imports continue to increase Make higher value petrochemical products (e.g., propylene, BTX) Improve energy efficiency Achieve economy of scale Need of the Hour: Process heavier crudes and Maximize Petrochemicals Production A World of Solutions 8
CONSIDERATIONS FOR REF-PETCHEM COMPLEX Units considered in integration Atmospheric Residue Hydro-desulfurization (ARDS) unit to upgrade the Atmospheric Residue (AR) Indmax FCC unit to convert treated AR to propylene Olefin Conversion Technology (OCT) unit to convert light olefins (C2, C4 and C5) from Indmax FCC to propylene OCT feed enhancement units CD-DeIB, CD Isomerization Objectives: Maximize propylene production from residue Essentially create a propylene machine using residue as a feedstock Meet product specifications and environmental emission requirements A World of Solutions 9
CASE STUDIES FOR REFINING AND PETROCHEMICALS INTEGRATION Process scheme and case studies considered in the present study Typical Integrated Process Scheme Brief description of technologies Block flow diagrams (Cases 1, 2) Optimization of ARDS and Indmax RFCC Units Optimization of Indmax RFCC and OCU A World of Solutions 10
TYPICAL ARDS/RFCC CONFIGURATION Diesel and Lighter Crude ATM Tower Naphtha Diesel Light Gas to Petrochemicals ARDS RFCC Gasoline LCO CLO H 2 Typical RFCC Feed Targets: <15 ppm Ni + V 5 Wt % CCR 0.5 Wt % Sulfur Most common configuration in grassroots projects today A World of Solutions 11
INDMAX RFCC: MOTHER UNIT FOR REFINERY & PETROCHEMICAL INTEGRATION Maximize flexibility to address market changes Dry gas C 3 s LPR Ethylene Recovery PRU Ethylene C3 LPG Propylene C 4 s Isomerization ARDS Indmax RFCC Unit C 5 s OCU/ Reverse OCU CDAlky Alkylate C4 LPG Maximize Propylene, Ethylene, Butylenes and BTX Ether/ Dimer Technologies Naphtha HDS+ BTX Extraction LCO product Gasoline HDS CDHydro / CDHDS MTBE/ ETBE/ TAME/ Dimers Benzene, Toluene, Mixed Xylenes Ultra Low Sulfur Gasoline Slurry Oil to Coker Unit A World of Solutions 12
Features of Indmax RFCC Technology A World of Solutions 13
INDMAX FCC TECHNOLOGY FOR RESIDUE TO PETROCHEMICALS Well Tested Process Parameters & Concepts Advanced Hardware Indmax FCC Indmax Catalyst CB&I is the exclusive licensor worldwide 14
Indmax FCC Unit INDMAX FCC TECHNOLOGY FEED/PRODUCT FLEXIBILITY Flexible Design Deals with Fluctuating Marketplace Ethylene and Propylene Butylenes Feeds from ARDS/ VRDS Alkylation Feed High Octane Gasoline BTX A World of Solutions 15
INDMAX CATALYST Selective Cracking Achieves higher bottoms conversion Achieves high quantities of light Olefins Superior coke and dry gas selectivity at high reactor temperatures Drawbacks of ZSM-5 eliminated Excellent Metals Tolerance Lower vanadium deactivation Suppresses dehydrogenation impact of nickel A World of Solutions 16
INDMAX FCC HARDWARE TECHNOLOGY FEATURES Direct-Coupled Cyclones Spent Catalyst Distributor ModGrid TM Stripper Internals MSO TM Air Grids Micro-Jet TM Feed Injectors
SUCCESSFUL START-UP: INDMAX FCC UNIT AT IOCL PARADIP REFINERY Trouble free start-up in Dec 2015. Continued smooth operation to date! 18
INDMAX FCC TECHNOLOGY EXPERIENCE Asia Confidential IOCL Paradip IOCL Guwahati IOCL Bongaigoan A World of Solutions 19
INDMAX RFCC FEED TARGETS Property Desirable for Indmax RFCC ARDS Sulfur CCR Nickel and Vanadium Crackability Avoid Flue Gas Desulphurisation in the Indmax RFCC Determines catalyst cooling requirements Determines RFCC catalyst consumption A combination of hydrogen content, boiling range and viscosity that promotes vaporization and cracking 0.5 Wt % Max. 3-6 Wt % Max. 2-50 ppm ARDS is preferable for preparing good feed for RFCC/Indmax RFCC (feeds from heavy crude oils) A World of Solutions TM 20
OPTIMIZATION OF ARDS AND INDMAX RFCC UNITS Optimization of ARDS Extent of feed desulfurization Metals (nickel & vanadium) removal Simplification to fractionation/gas plant Effective Use of ARDS Indmax RFCC Synergies Ensuring the sulfur trade-offs between feed/products Utilizing the higher metal tolerance capabilities of Indmax catalyst Indmax catalyst & FCC hardware lower delta coke advantage Patented Light Feed Injection Technology for ARDS naphtha feed processing ARDS & Indmax RFCC Synergies Capital & Operating Cost Savings A World of Solutions 21
OPTIMIZATION OF RHDS AND INDMAX FCC UNITS Potential savings of ARDS (~30,000 BPSD) and Indmax RFCC optimization U.S. $11-$12 million Capital Costs of ARDS unit U.S. $5-$6 million per year Operating Costs of ARDS unit No capital/operating cost increase in the Indmax RFCC unit No flue gas treating unit No catalyst cooler No feed preheater Lower Indmax catalyst make-up (0.15-0.3 lb/bbl) Higher the Throughput Improved Capital & Operating Cost Savings A World of Solutions 22
RHDS PLANT REFERENCE LIST A World of Solutions 23 23
OLEFINS CONVERSION TECHNOLOGY (OCT) METATHESIS REACTION IS ENERGY NEUTRAL 1 mole Butene-2 1 mole + Ethylene = 2 moles Propylene OCT upgrades lower cost butenes 0.74 ton C 4 1 ton propylene OCT can be reversed to shift between propylene and ethylene product preferences
BLOCK FLOW DIAGRAM (CASE 1) ERU Fuel Gas Ethylene C 3 s PRU Propylene AR RHDS C 5 + Liquid Indmax RFCC FCC C 4 s Light Naphtha Heavy Naphtha LCO SHU + CD-DeIB AR: RHDS: ERU: PRU: OCT: HDS+AEU: SHU+CD-DeIB: Atmospheric Residue Residue Hydro Desulfurization Ethylene Recovery Unit Propylene Recovery Unit Olefin Conversion Technology Hydrodesulfurization, Aromatics Extraction Unit Selective Hydrogenation and CD Deisobutylene Unit Slurry Oil HDS+AEU BTX Products OCT Propylene LPG A World of Solutions 25
BLOCK FLOW DIAGRAM (CASE 2) ERU Fuel Gas Ethylene C 3 s PRU Propylene AR RHDS C 5 + Liquid Indmax RFCC FCC C 4 s Light Naphtha Recycle C 5 s Light Naphtha SHU + CD-DeIB + CD Iso Heavy Naphtha AR: RHDS: Atmospheric Residue Residue Hydrodesulfurization LCO Slurry Oil Depentanizer ERU: PRU: Ethylene Recovery Unit Propylene Recovery Unit HDS+AEU Propylene OCT: HDS+AEU: SHU+CD- DeIB+CD Iso:: Olefin Conversion Technology Hydrodesulfurization, Aromatics Extraction Unit Selective Hydrogenation and CD Deisobutylene+Isobutylene Isomerization Units BTX Products OCT LPG Imported Ethylene A World of Solutions 26
CASE STUDY RESULTS Products Study Case 1 Study Case 2 Total Propylene 33% 40% Heavy Naphtha (BTX Feed) 24% 24% LCO 12% 12% Estimated payback period: Case 1: 3 years Case 2: Less than 3 years A World of Solutions 27
SUMMARY Flexible ARDS-Indmax RFCC configurations to produce fuels and petrochemicals to meet demand ARDS and Indmax catalyst technologies continuing to evolve to meet the challenges of: Increasingly diverse feed sources and difficult feed properties Increased processing severity expectation ARDS-Indmax RFCC provide synergies that significantly reduce capital & operating costs Case study demonstrates an optimized ARDS and Indmax RFCC producing maximum propylene with less than a three-year payback time A World of Solutions 28
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