OLEFINS PRODUCTION. Olefins by steam cracking

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OLEFINS PRODUCTION Olefins by steam cracking

Content Importance of ethylene and propylene in the chemical industry History Characteristics of steam cracking Raw materials and products Steam cracking processes, steam cracking at TVK Safety aspects Control systems Key equipment Overview of investment and operating costs 2

Importance of ethylene and propylene in the chemical industry 3

Lower olefins: ethylene and propylene The largest volume petrochemicals produced Global production in 2015 is about 143 million tons ethylene and 95 million tons propylene Annual increase of some 4-5 % Ethylene and propylene have no end use, they are building blocks for a large variety of chemicals and petrochemical products Polymers are the dominating end-users 4

Building block for petrochemicals ethylene consumption Styrene 6% VAM 1% Others 7% EDC (PVC) 12% Ethylene oxide 14% PE 60% 5

Building block for petrochemicals propylene consumption Isopropanol 2% Acrylic acid 5% Cumene 5% Propylene oxide 7% Acrylonitrile 7% Others 11% PP 64% 6

million ton Main drivers for ethylene and propylene demand: PE and PP 100 90 80 70 60 50 40 30 20 10 0 PE PP 1975 1980 1985 1990 1995 2000 2005 2010 2015 7

million ton Global consumption of ethylene and propylene 160 140 120 Ethylene Propylene 100 80 60 40 20 0 1990 1995 2000 2005 2010 2015 8

Hungary: ethylene produced by MPK only RAW MATERIALS FROM MOL (NAPHTHA, LPG AND GAS OIL) ETHYLENE TO BORSODCHEM LDPE-2 65 kt/yr CUSTOMERS OLEFIN-1 370 kt/yr PP-3 100 kt/yr HDPE-1 200 kt/yr CUSTOMERS OLEFIN-2 290 kt/yr HDPE-2 220 kt/yr PP-4 180 kt/yr CUSTOMERS PROPYLENE TO SPC BUTADIENE 130 kt/yr BY-PRODUCTS TO MOL (ISOBUTHYLENE, BT CUT, C8 AND C9 CUT) FUEL OIL TO CARBON BLACK PRODUCER BUTADIENE TO CUSTOMERS 9

History 10

Ethylene milestones 1913: Standard Oil s scientist patented thermal cracking process 1930s: Ethylene was first separated from coke oven gas and the first commercial plant for the production of ethylene was built by Linde at that time 1941: Standard Jersey (ExxonMobil s predecessor) developed the world s first steam cracker at Baton Rouge 1950s: Ethylene emerged as a large-volume intermediate, replacing acetylene as prime material for synthesis Today ethylene is primarily produced by thermal cracking of hydrocarbons in the presence of steam. Plant capacities are up to 1-1,5 million t/yr ethylene. Other processes are also available or under development 11

Olefins production by processes, 2008 120 100 80 million t 60 40 20 0 ethylene propylene steam cracking refinery operation others 12

Ethylene at MPK (TVK) 1975: First steam cracker with Linde process started operation Original nameplate capacity: 250 kt/yr ethylene After several debottlenecking nowadays the actual capacity is 370 kt/yr 2004: Second cracker (also Linde process) with 250 kt/yr capacity was commissioned Today the capacity is 290 kt/yr 13

Present and future processes to ethylene and propylene production Steam cracking Refinery processes MTO Methanol to Ethylene and Propylene MTP Methanol selectively to Propylene Syngas via Fisher Tropsch Green Ethylene - Biomass via Fermentation to Ethanol and Dehydration of Ethanol - Biomass > Syngas > Fischer Tropsch dominating technology minor importance for ethylene important for propylene only technology is ready but not yet commercialized commercialisation phase minor importance commercialisation phase study phase 14

Characteristics of steam cracking 15

What is steam cracking? Steam cracking is a pyrolysis process A hydrocarbon mixture is heated in metal tubes inside a furnace in the presence of steam to a temperature at which the hydrocarbon molecules thermally decomposes For ethane the primary reaction is dehydrogenation C2H6 H2C=CH2 + H2 Other free radical reactions also occur Cracking and dehydrogenation of longer molecules resulting in hydrogen, methane, ethylene, propylene, butadiene and heavier Continued dehydrogenation to form acetylene, aromatics and coke These reactions require a residence time of less than one second and are endothermic 16

Principle of the cracking process 17

Key words for cracking Yield Cracking severity Propylene/Ethylene ratio (used for liquid feed) Conversion (used for gas feeds) Dilution steam ratio Residence time Run time Product/Feed Depth of cracking e.g. P/E=0,45 T~ 850 C; P/E=0,60 T~ 810 C Conversion rate of feed component e.g. 60-70 % for ethane Steam/HC feed e.g. 0,5 kg/kg for naphtha Residence time of one molecule in the cracking coil e.g. 0,1 0,5 sec Time between two decokings e.g. 50 80 days 18

Cracking conditions Residence time 0,1 0,5 sec Short residence time favours primary reactions where olefins are formed Long residence time favours secondary reactions where olefins are destroyed Pressure 2 3 bar High pressure favours secondary reactions Low pressure favours primary reactions Dilution steam 0,3 0,8 kg/kg Reduces partial pressure of HC Suppresses secondary reactions Prevents excessive coke formation Heavier feedstock needs more steam Temperature 800 850 C High temperature promotes the formation of lower olefins, low temperatures favour oligomerization Fast temperature rise favours ethylene and propylene The heavier the feed the lower the temperature coke formation! 19

Severity vs. product yield Yields for naphtha feed 40 35 30 25 P/E 0,4 0,5 0,6 % 20 15 10 5 0 Ethylene Propylene Hydrogen Fuel gas C4 Gasoline Oil 20

Raw materials and products 21

Wide range of feedstocks Gaseous feeds Ethane Propane N-butane/i-butane Liquid feeds Condensates from natural gas Naphtha Atmospheric gas oil (AGO) Hydrocracker residue (HCR), hydrogenated vacuum gas oil (HVGO) 22

Olefins in cracked gas, % Yields depend on feed 60 50 ethylene propylene 40 30 20 10 Butanes Ethane Propane Naphtha AGO 0 2 3 4 8 19 Average C number of feed 23

Ethylene yield vs paraffin content 32 31 etilén hozam, % etilénhozam, s% számított mért 30 29 28 27 26 34 36 38 40 42 a v.benzin vegyipari benzin n-paraffin n-paraffin tartalma, tartalom, s% % etilénhozam - elméleti etilénhozam - gyakorlatban mért 24

Considerations for feedstocks Paraffins are the best raw materials Lower carbon number gives higher ethylene yield Cracking severity influences product yield Steam crackers are mostly integrated into refineries therefore both gaseous and liquid feeds are used, profitability is very complex issue and evaluated together with refinery operation 25

Main and byproducts Hydrogen Fuel gas Feedstock Steam Pyrolysis section Crack gas Recovery section Ethylene Propylene C4 Gasoline Oil 26

Steam cracking processes Steam cracking at MPK 27

Process design considerations Ethylene process is one of most complex systems in petrochemical industry. The following challenges have to be faced: Safety first High energy efficiency and minimum environmental emissions Low production costs and low investment costs High plant reliability Simple operation Good maintainability Minimum losses 28

Olefins production block diagram Földgáz CH4 frakció Etán recirkuláció Alapanyag Pirolízis és kvencs hűtés Olaj frakcionálás Vizes hűtés Krakk gáz kompresszió Lúgos mosás Előhűtés Szárítás Deethanizer (C2-/C3+ elválasztás) C2- C2 hidrogénezés Mélyhűtés Demethanizer (C2/C1- elválasztás) C2H4/C2H6 szétválasztás Technológiai gőz C3+ C5+ Propán recirkuláció Depropanizer (C3/C4+ elválasztás) C3H6/C3H8 szétválasztás Debutanizer (C4/C5+ elválasztás) Pirolízis olaj Pirobenzin C4 frakció Propilén H2 frakció Etilén 29

Material and energy streams at MPK Olefin-2 Natural gas Steam Electric power Naphtha Gasoil LPG (propane, butane) Olefin-2 Methane (to fuel gas) Hydrogen TIFO Ethylene PE production Propylene PP production BT fraction MOL C8 fraction MOL C9+fraction MOL Quench oil CTK Ethane (repyrolysis) Propane (repyrolysis) C4/C5 (repyrolysis) 30

Tasks of a cracking furnace Production of ethylene and propylene by endothermic cracking reaction Preheating of feed and dilution steam by utilization of waste heat Cooling of the cracked gas to freeze chemical reactions Production of superheated HP steam by utilization of waste heat 31

Cracking furnaces Radiant section: thermal cracking reactions (800 850 C) Convection section: heat recovery from hot flue gas Feed preheating Boiler feed water preheating Process steam superheating HHP steam superheating Linear quench exchanger Freezing cracking reactions in order to avoid product losses by secondary reactions (400-600 C) Heat recovery -> HHP steam production Olefin-1 and Olefin-2 represent two generations O-1: 11 furnaces O-2: 4 furnaces 32

Cracking furnace in Olefin-2 Quench exchangers Convection section Radiant coils Side-wall burners Floor burners 33

Tube arrangement in the radiant zone (Olefin-2) 34

Oil and water quench Further cracked gas cooling by direct oil injection downstream the quench coolers (220-250 C) Oil Fractionation (primary fractionation) and Quench Oil Cycles Two quench oil cycles (Pyrolysis Fuel Oil and Pyrolysis Gas Oil) are used as heat carrier to cool the cracked gas (~100 C) and to shift the recovered heat to consumers Both quench oil cycles are formed by condensing the heavy ends of the cracked gas Process steam generation by hot quench oil Water Scrubbing (Water quench column) Cracked gas is cooled by water circulation to ambient (~30 C) temperature to condense heavy gasoline and process (dilution) steam Circulating water is withdrawn from the bottom of the column and pumped to several consumers for low temperature heat recovery 35

Hot section: Oil fractionating and water quench column in O-2 36

Cracked gas compression Cracked gas is compressed with a 5-stage centrifugal compressor Suction pressure: 0,5 bar (g) Discharge pressure: 32-36 bar (g) The compressor is driven by an extraction/condensation steam turbine. Process water and gasoline are condensed in the interstage coolers and knocked out in the interstage separators. Gasoline is directed to hydrogenation and separation. Caustic Scrubbing: removal of the acid components CO2 and H2S in a 3-stage caustic scrubber 37

Cracked gas compressor in Olefin-2 38

Cold section block diagram 39

Cold section 1 Precooling, drying, deethanizer Cracked gas cooling to drying temperature Cracked gas drying to eliminate water content Cooling to -40 C (cooling with propylene refrigerant and cold streams from the low temperature section) Separation of C2- and C3+ fraction (deethanizer) C3+ processing C3/C4+ separation (depropanizer) C3 hydrogenation: conversion of methyl-acetylene and propadiene to propylene and propane C3H6/C3H8 separation: propylene product, propane recycle C4/C5 separation 40

Cold section 2 C2 hydrogenation Acetylene is selectively hydrogenated to ethylene Max. 1 ppm acetylene downstream the catalytic reactor Low temperature section (cold train) C2- fraction is cooled with ethylene refrigerant and expanded cold streams (-145 C) Separation of C2 from C1 and hydrogen from methane: ethylene, ethane, and almost all methane is condensed, the remaining gas consists of a hydrogen-rich fraction C2 splitter To separate ethylene (top product) and ethane (recycled to feed) 41

Safety aspects 42

About safety Safety first concept has to be applied for a plant during design, construction and operation in line with the industrial standards and norms Safety is expensive there is nothing for free 43

Major risk factors in olefin plants High volume of highly flammable hydrocarbon gases and liquids Extremely high and low temperatures High pressure Corrosion Complexity of operation 44

Plant safety: based on risk evaluation Risk consideration Risk matrix Frequency of hazardous events high Process risk Frequency medium Consequence of hazardous events low Consequence 45

Risk reduction Levels of risk reduction measures Incident remote with very serious consequences failure of safety system Failure seldom with serious consequences failure of control system, failure of plant components, severe operating failures Process upset frequent with minor consequences failure of control system, utility system, simple operating failure Process variation Emergency Response Emergency Response Plan Fire Brigade/First Aid Mitigation Mechanical System (e.g. safety valves, blow-down system) Safety Instrumented System Prevention Inherent Design Mechanical System Safety Instrumented System Operating Instruction Control and Monitoring Basic Process Control System Monitoring System (process alarms) Process Operating condition Normal Operation Start-up/Shut-down 46

Example for risk reduction: selection of construction materials Suitable material is not subject to unexpected material related failures during the calculated plant lifetime under nominal operation conditions Calculated plant lifetime: ~15-20 Years Nominal operation conditions: Specified cases of operation Design pressure and temperatures, fluid composition, flow velocity as specified Start up Shut down Site condition 47

Example for risk reduction: fire and explosion protection Proper selection of mechanical equipment to avoid leakages Explosion proof electric equipment and instrumentation Gas detection systems Steam curtains (e.g. for the furnaces) Closed blow-down system Safety distances between plant section Fire proofing insulation Fire water systems including hydrants and monitors Water spray systems 48

Control systems 49

The automation pyramid of a company ERP P&S Management level Supervision, Control, Data Acquisition, Advance Control, Operator level Process control, PLC, PID, APC, Safety instrumentation, etc. Controller level Sensors, Actuators, Switchgears, etc. Field level 50

Plant control systems 51

Key equipment 52

Main groups of equipment Furnaces Static equipment Columns, reactors and other pressure vessels Heat exchangers Storage tanks Rotating equipment Turbo machineries Turbo compressors Steam turbines Reciprocating compressors Pumps 53

Turbo compressors in O-2 plant Crack gas compressor Duty: 13,5 MW Drive: steam turbine Ethylene compressor Duty: 6,5 MW Drive: steam turbine Propylene compressor Duty: 4,5 MW Drive: steam turbine 54

Crack gas compressor O-2 plant 2nd and 3rd stage 1,35 9,3 bar 4th and 5th stage 9,0 36 bar 1st stage 0,3 1,5 bar 55

Crack gas compressor O-2 plant 56

Crack gas compressor LP section 57

Steam turbine 58

Turbine driven BFW pump 59

Multistage BFW pump 60

Overview of investment and operating costs 61

Investment costs Basis: WE 2015 Q2 Capacity: 825 kt Standard naphtha cracker Investment costs million EUR ISBL 862 OSBL 431 Total investment: 1293 Specific investment 1567 EUR/ton 62

Ethylene production cost Basis: WE 2015Q2 Capacity: 825 kt EUR/ton Raw materials 1116,7 Utilities 129,3 Co-products credit -944,5 Total variable cost 301,5 Fix costs 82,6 Total cash cost 384,1 100,0 80,0 60,0 40,0 20,0 0,0 Q2 Q1 Raw materials Utilities Fix costs 63