` IHS CHEMICAL Light Hydrocarbon and Light Naphtha Utilization Process Economics Program Report 297 September 2016 ihs.com PEP Report 297 Light Hydrocarbon and Light Naphtha Utilization Girish Ballal Principal Analyst
PEP Report 297 Light Hydrocarbon and Light Naphtha Utilization Girish Ballal, Principal Analyst Abstract Light hydrocarbon and light naphtha refer to various hydrocarbon streams in the C5 C7 range. These streams originate from a variety of sources in the refinery, ranging from atmospheric distillation to gas plants from various refinery reactors. These hydrocarbon streams may be used to produce chemicals or may be utilized for fuel applications. In a modern refinery, it is imperative to upgrade many of the available light hydrocarbons to heavier components with higher octanes in order to meet the quality specifications on the gasoline pool. Constantly tightening environmental regulations enacted worldwide have prompted the development of sophisticated upgrading technologies in recent years. With the above in perspective, we present in this report a review and technoeconomic analysis of some of the processes utilizing light hydrocarbons and light naphtha in a refinery setup. The processes analyzed in this report include alkylation and dimerization of olefinic fluidized catalytic cracking (FCC) C4 stream, and isomerization of C7 paraffinic stream. The emphasis is on modern emerging technologies such as solid acid catalyst for alkylation and metal-oxide catalyst for isomerization technology extended to C7 hydrocarbons. The processing capacity for the alkylation and dimerization processes is 10,940 BSD (barrels per stream day) of feed. The isomerization process aimed at the narrow C7 cut has smaller capacity, processing 3,670 BSD of feed. The production economics assessment in this report is based on a US Gulf Coast location. However, an ipep Navigator module (an excel-based computer costing model offered by IHS Chemical) is attached with this report to allow a quick calculation of the process economics for three other major regions Germany, Japan, and China. For every process, the module also allows production economics to be reported in English or metric units in each region. The technological and economic assessment of the processes is the independent interpretation by the IHS Chemical Process Economics Program (PEP) of the companies commercial processes based on information presented in open literature, such as patents or technical articles, and may not reflect in whole or in part the actual plant configuration. We do however believe that they are sufficiently representative of the processes and process economics within the range of accuracy necessary for economic evaluations of the conceptual process designs. 2016 IHS 1 September 2016
Contents 1 Introduction 7 2 Conclusion 9 3 Executive summary 10 Commercial overview 10 Technology overview 10 Alkylation 11 Isomerization 11 Dimerization 12 Process economics 12 Summary and conclusions 16 4 Industry status 18 Sources and uses 18 Capacities 22 Top producers 24 Regulatory issues 26 Feedstock and by-products 28 C4-rich streams 28 Light naphtha 30 Isobutane 30 Gasoline 31 Butane 32 5 Technology review 32 Octane values 32 Feedstock 34 Alkylation 34 Chemistry 35 Feedstock 35 Catalysts 36 Process 37 Commercial solid acid based technologies 39 Isomerization 40 Catalysts 40 Process 43 Commercial metal oxide based technologies 47 Dimerization 47 Chemistry 48 Feedstock 49 Catalysts 49 Process 50 Commercial dimerization technologies 52 Light hydrocarbon aromatization 53 Catalysts 53 Process 54 Commercial aromatization technologies 55 Patent review 55 Albemarle/AkzoNobel 55 IHS CHEMICAL Catalytic Distillation Technologies (CDTech) 56 COPYRIGHT NOTICE AND DISCLAIMER 2016 IHS. For internal use of IHS clients only. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions 2016 IHS of authorship. The information contained herein is from sources considered reliable, but its accuracy and 2 completeness are not warranted, nor are the September 2016 opinions and analyses that are based upon it, and to the extent permitted by law, IHS shall not be liable for any errors or omissions or any loss, damage, or expense incurred by reliance on information or any statement contained herein. In particular, please note that no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, forecasts, estimates, or assumptions, and, due to various risks and uncertainties, actual events and results may differ materially from forecasts and statements of belief noted herein. This report is not to be construed as legal or financial advice, and use of or reliance on any information in this publication is entirely at client s own risk. IHS and the IHS logo are trademarks of IHS.
CB&I/ABB Lummus 57 Exelus 57 Fortum Oil and Gas 57 JSC Sie Neftehim 58 Neste Oil 58 Nippon Oil 59 Refining Hydrocarbon Technology (RHT) 60 Saipem/Snamprogetti 60 UOP 61 6 AlkyClean alkylation process by CB&I/Albemarle/Neste 64 Section 100 Alkylation reactors 64 Section 200 Product recovery 65 Process discussion 66 Feedstock 66 Reaction and product recovery 67 Catalyst 67 Process waste effluents 67 Materials of construction 68 Cost estimates 69 Fixed-capital costs 69 Production costs 70 7 IsoMalk-4 C7 isomerization process by Neftehim 76 Section 100 Isomerization reactors 76 Section 200 Product recovery section 77 Process discussion 80 Feedstock 80 Product recovery 81 Process waste effluents 81 Materials of construction 81 Cost estimates 83 Fixed-capital costs 83 Production costs 84 8 Dimerization process by Saipem 90 Section 100 Dimerization section 90 Section 200 Hydrogenation section 90 Process discussion 95 Feedstock 95 Reaction and product recovery 95 Catalysts 95 Process waste effluents 96 Materials of construction 96 Cost estimates 98 Fixed-capital costs 98 Production costs 99 Appendix A Patent summary table 105 Appendix B Design and cost bases 116 Design conditions 117 Cost bases 117 Capital investment 117 Production costs 118 2016 IHS 3 September 2016
Effect of operating level on production costs 118 Appendix C Cited references 120 Appendix D Patent references by company 125 Appendix E Process flow diagrams 128 Tables Table 3.1 Comparison of production economics 13 Table 4.1 Global top alkylate producers 25 Table 4.2 Global top polgas/dimersol producers 26 Table 4.3 Various gasoline properties regulations 27 Table 5.1 Research octane numbers of some hydrocarbons 33 Table 5.2 Compositions of typical C4 streams 34 Table 5.3 Estimated impact of feedstock variation 36 Table 5.4 Comparison of AlkyClean with liquid acid technologies 39 Table 5.5 AlkyClean comparison for environmental, safety, and waste treatment 39 Table 6.1 Design bases and assumptions (AlkyClean ) 65 Table 6.2 Feed composition (AlkyClean ) 66 Table 6.3 Stream summary (AlkyClean ) 66 Table 6.4 List of major equipment (AlkyClean ) 68 Table 6.5 Utilities summary (AlkyClean ) 69 Table 6.6 Total capital investment (AlkyClean ) 72 Table 6.7 Production costs (AlkyClean ) 73 Table 6.7 Production costs (AlkyClean ) (concluded) 74 Table 6.8 Production costs in metric units (AlkyClean ) 75 Table 7.1 Design bases and assumptions (IsoMalk-4 ) 77 Table 7.2 Feed composition (IsoMalk-4 ) 78 Table 7.3 Stream summary (IsoMalk-4 ) 79 Table 7.4 List of major equipment (IsoMalk-4 ) 82 Table 7.5 Utilities summary (IsoMalk-4 ) 83 Table 7.6 Total capital investment (Isomalk-4 ) 86 Table 7.7 Production costs (Isomalk-4 ) 87 Table 7.8 Production costs in metric units (IsoMalk-4) 89 Table 8.1 Design bases and assumptions (Saipem dimerization) 92 Table 8.2 Feed composition (Saipem dimerization) 93 Table 8.3 Stream summary (Saipem dimerization) 93 Table 8.4 Major equipment (Saipem dimerization) 97 Table 8.5 Utilities summary (Saipem dimerization) 98 Table 8.6 Total capital investment (Saipem dimerization) 101 Table 8.7 Production costs (Saipem dimerization) 102 Table 8.8 Production costs in metric units (Saipem dimerization) 104 Table 8.9 Light hydrocarbons and light naphtha patent summary 106 Figures Figure 3.1 Capital costs comparison 14 Figure 3.2 Capital intensity comparison 14 2016 IHS 4 September 2016
Figure 3.3 Production cost comparison 15 Figure 3.4 CO2 emissions comparison 16 Figure 3.5 Water usage comparison 16 Figure 4.1 Butylene production by sources 19 Figure 4.2 Butylene production by geographical regions 19 Figure 4.3 Butylene consumption by end use 21 Figure 4.4 Butylene consumption by geographical regions 21 Figure 4.5 Global production capacities for alkylation, isomerization, and dimerization 22 Figure 4.6 World alkylation capacity by process 22 Figure 4.7 World alkylation capacity by geography 23 Figure 4.8 World polygas/dimersol capacity by process 23 Figure 4.9 World polygas/dimersol capacity by geography 24 Figure 4.10 Crude C4s (contained butadiene) yearly prices 29 Figure 4.11 Raffinate-1 yearly prices 29 Figure 4.12 Light naphtha yearly prices 30 Figure 4.13 Isobutane yearly prices 30 Figure 4.14 Regular unleaded gasoline yearly prices 31 Figure 4.15 Premium unleaded gasoline yearly prices 31 Figure 4.16 Butane yearly prices 32 Figure 5.1 AlkyClean block diagram 37 Figure 5.2 AlkyClean catalyst regeneration scheme 38 Figure 5.3 C5 isomers equilibrium 40 Figure 5.4 C6 isomers equilibrium 41 Figure 5.5 C7 isomers equilibrium 41 Figure 5.6 Operating temperatures for various isomerization catalysts 43 Figure 5.7 Comparison of SI-4 with earlier catalysts 44 Figure 5.8 IsoMalk-4 block diagram 45 Figure 5.9 Conventional naphtha processing in refinery 46 Figure 5.10 Naphtha processing with IsoMalk-4 technology 47 Figure 5.11 Saipem dimerization process block diagram 50 Figure 5.12 Water-cooled tubular dimerization reactor 51 Figure 5.13 Dimerization process using catalytic distillation 52 Figure 5.14 Reaction scheme for aromatization of alkanes 54 Figure 6.1 Effect of plant capacity on investment cost (AlkyClean ) 70 Figure 6.2 Effect of plant capacity on production costs (AlkyClean ) 71 Figure 7.1 Effect of plant capacity on investment costs (IsoMalk-4 ) 84 Figure 7.2 Effect of plant capacity on production costs (IsoMalk-4 ) 85 Figure 8.1 Effect of plant capacity on investment costs (Saipem dimerization) 100 Figure 8.2 Effect of plant capacity on production costs (Saipem dimerization) 100 Figure 9.1 AlkyClean alkylation process by CB&I, Albemarle, and Neste 129 Figure 9.2 IsoMalk-4 C7 isomerization process by JSC Sie Neftehim/GTC Technology 130 Figure 9.3 C4 dimerization process by Saipem 131 2016 IHS 5 September 2016
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