Abu Dhabi International Downstream Summit 2017 Downstream optimization: role of technology, integration and industrial gases Dr.Ch.Bruch
The Linde Group worldwide Global presence in more than 100 countries Linde financial highlights 2016 Group Gas Engineering 16,948 14,597 2,351 Revenue in EUR m Capital Expenditure (Gas divisions excl. financial assets) in EUR m Order Intake (Engineering division) in EUR m 2,257 Order Backlog (Engineering division) in EUR m 4,386 Number of employees (as at December 31st 2016) 1,660 59,715 53,283 6,432 Linde in GCC Order Intakes (In-Kingdom contracts only, since 2005) in EUR m Capital Expenditure in GCC (since 2005 incl. JV @100%) in EUR m 2,289 1,245 Reportable segments Americas EMEA Asia/Pacific Countries home to operational companies in which Linde holds a direct or indirect shareholding and which belong to The Linde Group. 2
3 Linde's success is based on engineering and operation synergies Linde Engineering Technology focused 7,300 engineers Linde Gas supply business World class operations Air Separation Hydrogen/Syngas Gas HyCO Tonnage On-Site Plants ASU Tonnage On-Site Plants Global #1 Olefins Global #2 Natural Gas 5,600 operators Leveraging Synergies >100 >70 plants CO2 Plants >300 plants ECOVAR Std Plants Global #2 Global #3 1 >100 plants >950 >1,000 plants Linde Engineering state-of-the-art technology and EPC capability provide cost effective and efficient plants for Linde Gas worldwide Linde Gas operational expertise improves the Linde Engineering design, leading to innovative solutions and high plant reliably Linde is a one-stop-shop for leading technology, EPC competence and gas supply solutions 3
Global and Local Trends impacting the Petrochemical Industry Oil Price Fluctuation Shale Gas & Oil Boom Ethane & LPG Shipping Demand for Fuel Peaks Petrochemical Industry Value Chain to Specialty Chemicals Industry Business Cycle 4
Natural Gas to Chemicals New Linde Technologies Feedstock Intermediate stage Products CO2 import CO2 recycle Dry-Reforming for synthesis gas Natural gas Dry-Reforming Syngas Acetic Acid Formic Acid Polycarbonates MDI TDI O2 import OCM for direct conversion Natural gas Oxidative Coupling of Methane No intermediate products Ethylene MDI: Methylene diphenyl diisocyanate TDI: Toluene diisocyanate 5
Maximized Steam Cracking Technology Feed Flexibility and Value Cracking Feed Flexibility Operating Window Application of Value Cracking Gaseous Feedstock Cracking Steam Cracker Liquid Feedstock Cracking Steam Cracker Ethylene Propylene Butadiene Benzene Others Feed Flexibility Optimized economics Minimum operating cost Project specific design Value Cracking Recycle management Dedicated recycle furnaces Maximized valuable by-products 6
Improving steam cracker economics with Linde s Value Cracking Case study: Liquid cracker with approx. 2,700 kt/a full range naphtha capacity 7 ic4s Naphtha Linde s Value Cracking process scheme Gas Furnaces Naphtha Furnaces C2/ C3 Recycle Recycle Furnace 6/ 7 @ extreme mild cracking nc4s C4 Isomerization & Separation 7 + Reversed Butamer Linde Value Cracking 7 C5 Processing 9 8 Separation Section 4 5 C5,C6 C8 Raffinate Raffinate-1 4 Ethylene Propylene Butadiene PFO 3 Benzene Toluene Xylenes C9 Pygas 5 2 5 Isoprene Piperilene 8 Cyclopentadiene 200 180 160 140 120 100 80 60 40 20 0 Base Case Cumulative add. revenues (rel. to Base Case ) [MM$ per year] 1 2 3 4 5 6 7 8 9 Add BD Ex Add B -Ex Increases yield of high valuable products (propylene, butadienes, etc.) @ approx. 60 USD/bbl typical payout time for add. CAPEX < 2 4 years 1 2 3 4 5 6 7 8 9 Add Add C4-C6 Rec BTX Ex C4- C8 Rec Flexible steam cracking at optimized conditions, providing suitable feedstock by feed selection, pretreatment and/or by-product processing and recycling Mild Value Cracking Value Cracking + C5 Products Value Cracking + C5 Products + Rev. Butamer 7
Improve Profitability in Petrochemicals - Integration of Refinery with Steam Cracker Example: Refinery & steam cracker integration flow scheme Linde s value Proposition CDU: Crude distillation unit; VDU: Vacuum distillation unit; HDT: Hydrotreating; CCR: Continuous catalytic reforming; HCK: Hydrocracker; FCC: Fluid Catalytic Cracking; SDA: Solvent de-asphalting unit; DLC: Delayed coking unit; VB: Vis-breaker Improved molecule management & integration allows for higher yields and margins Maximum feedstock flexibility ranging from C2, C3 up to HVGO and HCK residue (FBP> 570 C) Optimized solutions for refinery & petrochemicals integration (e.g. refinery off-gas processing, gas separation, steam cracking of crude oil molecules, H2 production & recovery) Optimized process concepts (together with refinery technology licensor) allow for lower investment & operational costs Implementation of Crude Oil to Chemicals with liquid steam cracking Linde designed & built 30 new and revamped 60 liquid steam crackers, amongst the world s largest ones 8
Preconditions and Key Elements for Future Growth of the Petrochemical Industry in GCC Plant Efficiency Upstream Integration State-of-the-art Technology Value Chain Extension Petrochemical Industry Advantage Feedstock Financing 9
Industrial Gases Key Block in Refining & Petrochemical Expansion & Integration REFINERIES PETROCHEMICAL UNITS Naphtha, Butane, ROG LPG, gasoline, jet fuel, diesel, bitumen, asphalt, Sulphur, coke etc Nitrogen Oxygen Hydrogen Carbon Monoxide Carbon Dioxide Olefins, polyolefins Ammonia/Urea Methanol enhanced methanol production EO/MEG & downstream PO & downstream PU & downstream INDUSTRIAL GASES INTEGRATED SYSTEM Naphtha/LPG H2-rich Off-gases Distillation Residues Natural Gas Gasifications Air Separations H2-PSAs Steam Reformers 10
Industrial Gases Integrated Systems Selected Linde s References Rotterdam, CO2-Cluster Jubail-2, Sadara Complex Jurong Island, Petrochemicals Leuna, Petrochemical Cluster Map Ta Phut, Petrochemical Cluster Americas EMEA Asia/Pacific 11 11
Thank you for your attention. www.linde.com
Volatile Market Prices Volatile Market Prices Linde Value Cracking Key features Feedstock Cracking Furnaces Separation Section High Value Products Propane Butane Naphthas Heavy Feeds A B #1 #2 # C Cracked Gas Ethylene Propylene Butadiene Benzene Aromatics B D E A Feed pretreatment B Feed & recycle distribution Key elements of Value Cracking C Low severity cracking D Recycle intensification E By-product processing Flexible steam cracking at optimized conditions Increases yield of high valuable products (propylene, butadienes, etc.) 13
Existing Petrochemical Plants Debottlenecking & Upgrade Revamp & Modernization Measures Reliability & Availability Regulatory Compliance Capacity Increase Existing Petrochemical Assets Energy Efficiency Feedstock Flexibility Product Slate Upgrading 14
Linde Liquid Steam Cracker Selected References Location Tobolsk, Russia Dahej, India Dushanzi, China Tiszaujvaros, Ungary Antwerp, Belgium Owner ZapSibNeftekhim LLC (SIBUR) ONGC Petro additions Ltd. (OPaL) PetroChina Dushanzi Petrochem. Co. TVK BASF Feedstock C 2 C 4 Dual Feed C 2 C 4 / Naphtha Light HC, LPG, Naphtha, HTO LPG, Naphtha, AGO LPG, Naphtha Olefin capacity 1,500 kt/a C 2 H 4 1,100 kt/a C 2 H 4 1,000 kt/a C 2 H 4 250 kt/a C 2 H 4 1,080 kt/a C 2 H 4 535 kt/a C 3 H 6 400 kt/a C 3 H 6 500 kt/a C 3 H 6 125 kt/a C 3 H 6 600 kt/a C 3 H 6 Startup Under construction 2017 2009 2004 2002 15