Raising the Bar Premium Base Oils Produced by the All-Hydroprocessing Route Presented at ARTC 7 th Annual Meeting April 2004 Singapore 2010-10-04 040098-Srinivasan
Dr. Ashok Krishna Managing Director Chevron Lummus Global LLC and ChevronTexaco's Technology Marketing Mr. Sook-Hyung (Sam) Kwon Vice President and Project Director SK Corporation
Raising the Bar Through Partnership The Past History of Hydroprocessing at SK, ChevronTexaco, the partnership begins The Present Influence of SK, CLG on base oil market, development of technology and catalyst, the partnership evolves The Future Extending the hydroprocessing chain for further improvement, the bar is raised, the partnership innovates
The Past Hydroprocessing at ChevronTexaco 1963: Pascagoula ISOCRACKING Unit #1 1966: Richmond ISOCRACKING Plant 1969-70: Pascagoula ISOCRACKING Unit #2 and El Segundo ISOCRACKING Unit Mid-1970 s and Early 1980 s: LSFO projects (diesel, VGO, RDS and VRDS Hydrotreaters) in all three refineries 1984: Richmond Lube Oil Plant (RLOP), world s first all-hydroprocessing route to base oils 2010-10-04 040098-Srinivasan
Development of ISODEWAXING/ Hydrofinishing 1985-1993: Invention, development and commercialization of ISODEWAXING Catalyst 1993: First generation, ICR 404, installed at RLOP 1993-Now: Multiple industry awards, licensing takes off 1996: Second generation ISODEWAXING Catalyst commercialized, ICR 408 ChevronTexaco ISODEWAXING/Hydrofinishing become industry leaders Base Oil Market driven by supply and demand from finished lubricants evolving specifications 2010-10-04 040098-Srinivasan
Licensing of ISODEWAXING/ Hydrofinishing Operator Plant Location Design Capacity, BPSD Unit Startup Chevron California 1993 PetroCanada Canada 1996 Excel Paralubes Louisiana 1996 SK Corp. Korea 1997 Fortum Finland 1997 Motiva Texas 1998 Chevron, 2 nd Train California 1998 Daqing China 1999 Motiva 2 Texas 2000 Lukoil Russia 2002 Total (Operating) 106,000 SK Corp. Asia 2004 Glimar Poland 2004 Gaoqiao, China Asia 2004 BPCL, India Asia 2005 Petrobras Brazil 2007 Total 45,000 (Design/Construction) Three Projects Asia, Europe On Hold Total 22,000 2010-10-04 040098-Srinivasan
1993 ISODEWAXING Application at RLOP Light & Heavy VGO Light HCR ISODE- WAXING Unit Hydrofinishing Unit Light Neutral Medium Neutral Heavy VGO Heavy HCR Solvent Dewax - Shut Down Hydrofinishing Unit Heavy Neutral 2010-10-04 040098-Srinivasan
Pre- 1993 RLOP Light & Heavy VGO Light HCR Catalytic Dewaxer Hydrofinishing Unit Light Neutral Medium Neutral Heavy VGO Heavy HCR Solvent Dewax Hydrofinishing Unit Heavy Neutral 2010-10-04 040098-Srinivasan
Present, All- Hydroprocessing Light & Heavy VGO Light HCR ISODE- WAXING Unit Hydrofinishing Unit Light Neutral Medium Neutral Heavy VGO Heavy HCR ISODE- WAXING Unit Hydrofinishing Unit Heavy Neutral 2010-10-04 040098-Srinivasan
Marketplace Evolution 60 50 40 % of Paraffinic Base Oil Market In North America 30 20 10 0 1995 1996 1997 1998 1999 2000 2001 1990 Now Classification None API Group II/III Market Share (North America) 10% > 50 % Premium Over Group I None Yes 2010-10-04 040098-Srinivasan
Current Events SK challenges CLG to improve lube quality/yield further CLG s catalyst development program results in next-generation ISODEWAXING and ISOFINISHING Catalysts SK and CLG do joint testing, validation -- ICR 422 currently operating in LBO #1 ICR 418 selected for new plant LBO #2, to be started up in 3Q 04 2010-10-04 040098-Srinivasan
Yield and V.I. Improvements on LN Feed (Group II, 150N) 2010-10-04 040098-Srinivasan
100N Performance (Feed-Normalized) CDW ICR 408 ICR 422 Yield, LV % Base +20 +23 Viscosity Index Base +10 +12 2010-10-04 040098-Srinivasan
Higher Performing Lubricants Are Required for Future Automotive Applications Passenger Car GF-4 and Euro-IV 2004 Fuel Economy, Volatility Oxidation Resistance Heavy Duty PC-10 and Euro-IV 2004-2006 Soot Handling, Volatility Oxidation Resistance Group II/II+/III Base oil Required Transmission Fluid DEXRON-IIIH New Factory Fill Specs 2003-2005 Group III for Oxidation Resistance 2010-10-04 040098-Srinivasan
Premium Base Oil Capacity Continues to Grow SK Leading the Way Refineries throughout Asia are actively seeking ways to upgrade to group II/II+/III 100 80 Market Share of Premium Base Oils Global Asia North America 60 40 20 0 % Today % 2006
Future Success Through Partnership Finished lubricants specifications will continue to drive base oil demand towards Group II, II+, III, GTLbased SK/CLG drive to continually improve base oil yield, qualities are now extending upstream of ISODEWAXING/Hydrofinishing Unit to the hydrocracking step Collaboration on studying feasibility of revamping existing hydrocracker for greater capacity, improved performance AND better base oil yields and qualities Process and catalyst developments are keys to Raising the Bar on Performance
Feasibility Case - Configuration, CLG Catalysts HCR debottleneck by >30%, using CLG s Optimized Partial Conversion ( OPC ) concept. Increase amount of high quality feedstock for ISODEWAXING/Hydrofinishing Unit by >60% Minimal modification to H.P. loop, downtime for modifications reduced Better catalyst life, despite higher throughput Flexibility to select different viscosity grades Can segregate low viscosity, high V.I. material, SK s primary product New CLG catalysts improve base oil V.I. for low viscosity material HCR bottoms enhance yields, V.I. in ISODEWAXING Process SK has done PP tests along with CLG to validate the concept 2010-10-04 040098-Srinivasan
ICR 240 CLG s Latest Catalyst, Uniquely Suited to SK s Primary Product Objective 2010-10-04 040098-Srinivasan
Partnership in Action SK and CLG have demonstrated the synergy and impact of a partnership in allhydroprocessing base oil production Separately we have innovated, and profoundly influenced the base oil market Together we have raised the bar 2010-10-04 040098-Srinivasan
The Past SK s Growth 1962: Korea Oil Corporation established 1964: No. 1 Crude Distillation Unit commenced operation, 35 KBD 1992: Heavy Oil Upgrading (HOU) Plant commenced, including VRDS 1995: Lubricating Base Oils Plant (LBO #1) commenced, Hydroprocessing-based, included UCO Lube Process 1996: RFCC Plant commenced, also pre-treat RDS 1996: No. 5 Crude Distillation Unit 1997: LBO #1 commenced as ISODEWAXING/ Hydrofinishing Unit, with ICR 408/407 Currently, second largest refinery in the world (OGJ) Major manufacturer/marketer of Group III base oils
Application of SK UCO Technology - 1995 Original HCK Design 30,000 FF +5,000 35,000 50,000 50,000 Unit : B/D R1 R2 Fs Diesel 5,000 15,000 20,000 VDU #2 VDU 35,000 35,000 FF 50,000 50,000 R1 R2 Fs After SK UCO Technology 15,000 20,000 Application VDU VDU CDW #2 VD U Diesel Unit : B/D
Application of SK UCO Technology - 1995 Process Integration Scheme VG O HT HC Recycle Oil Surge Drum Excess Distillates 70D 100D UCO 150/250D Existing HCK Reactors Fractionator Distillation Intermediate Storage
SK s UCO Lube Process, Properties 1995-1997 Test Item Test Method Solvent Refining Lube Hydrocracking SK UCO Lube Process (Old) Viscosity @ 100 C, cst ASTM D445 5.2 5.1 6.0 Viscosity Index ASTM D2270 97 99 123 Pour Point, C ASTM D97-12 -12-12 CCS Viscosity @ -20 C, cp ASTM D2602 2,100 2,000 1,650 Flash Point, C ASTM D92 218 220 232 Noack Volatility, Wt % DIN 51581 17.0 16.6 7.8 Aromatics, Wt % ASTM D2007 27.7 3.5 0 Sulfur Content, Wt % ANTEC 0.58 0.03 0.00
ISODEWAXING/Hydrofinishing SK s Project Result - 1997 Description IDW CDW Dewaxing Isomerization Cracking Pour Point -12 C -12 C VI 132 123 150N Case REMARK - - + 9 Flash Point 250 C 232 C Noack Vol 6.2 7.8 + 18-1.5 Naph. 10.5% 33.8% - 23.3 Yield Dist 4.5% 6.0% - 1.5 Lube 85.5% 64.5% + 21.0 M/U H2 1,900Nm3/hr 4,500Nm3/hr - 2,600
YIELD (%) Catalyst Conversion Lube Product Yield 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 70N 100N 150N CDW ISODEWAXING 0 90 180 270 360 450 540 630 720 810 900 990 OPERATION DAYS
VI NOACK Catalyst Conversion Lube Product Quality 140 135 130 125 120 115 110 VI NOACK wt % CDW ISODEWAXING 0 60 120 180 240 300 360 420 480 540 600 660 720 780 840 900 9601020 OPERATION DAYS 10 9 8 7 6 5 4 3 2 1 0
History of SK HCK & Lube Process Original Design (HCK Only) 30,000 FF +5,000 35,000 50,000 50,000 Unit : B/D R1 R2 Fs Diesel 5,000 15,000 20,000 VDU #2 VDU Combination of HCK and #1 LBO 35,000 FF 35,000 50,000 50,000 R1 R2 Fs #2 VD U VDU 15,000 20,000 Unit : B/D Diesel VDU CDW
History of SK HCK & Lube Process HCK Capa. Increase #1 40,000 FF 40,000 50,000 50,000 R1 R2 Fs 10,000 VDU #2 VD U VDU Diesel IDW HCK Capa. Increase #2 42,000 FF #2 VD U VDU 42,000 52,000 52,000 Unit : B/D R1 R2 Fs Diesel 10,000 VDU IDW
History of SK HCK & Lube Process 45,000 FF 45,000 55,000 55,000 R1 R2 Fs Diesel HCK Revamp + # 1 LBO + # 2 LBO #2 VD U VDU 10,000 VDU #1 IDW VRDS/Asphalt UCO VDU #2 IDW
Feasibility Study Modified Two-Stage HCK 1. Main Objectives of Feasibility Study Maximization of UCO for Lube Products Maximization of Premium Lube Base Oil (100N Product ) Upgrading Lube Quality (VI, CCS, Noack,etc)
Feasibility Study Modified Two-Stage HCK 2. Study Concept 60,000 FF 60,000 R1 R2 Fs Diesel 2-Stage HCK Modification + #1 LBO + #2 LBO #2 VD U VDU New VDU 35,000 5,000 30,000 New Fs 25,000 VDU VDU #1 IDW #2 IDW
Feasibility Study Modified Two-Stage HCK 3. Study Basis Sub-items Base Feasibility Study Case Hydrocracker Type Single Stage Hydrocracker Capa., B/D 45,000 Lube Production, B/D Base Two-Stage 60,000 + 6,000 Recycle Oil Rate, B/D 10,500 35,000 1st Stage Conversion, % - 50.0 Fract Bottom fr 1 st Stage, B/D 2 nd Stage Conversion, % - - 30,000 28.6 Fract Bottom fr 2nd Stage, B/D Waxy Distillate, B/D - - 25,000 20,000
Feasibility Study Modified Two-Stage HCK 4. Feedstock of HCK Typical Crude Slate : Middle East Feed type : Mixture of SR VGO (85%) plus HGO (15%) Feed Properties Feed Type Unit Typical Feed Type Unit Typical API 21.5 Metal Sulfur wt% 2.9 - Ni wppm Total Nitrogen wppm 1,100 - V wppm less than 1 Vis (40C) cst 50.4 - Fe wppm Vis (100C) cst 6.75 Distillation VI 80 0/5%LV Deg C 301/359 Pour Point Deg.C +36 10/30 Deg C 378/417 CCR wt% 0.35 50/70 Deg C 442/455 Aniline Pt Deg.C 79 90/95 Deg C 513/532
Feasibility Study Modified Two-Stage HCK 5. Scheme developed 60,000 FF Naph Unit : B/D VDU 35,000 RF Kero Diesel 20,000 HHPS HLPS 30,000 New VDU HHPS 25,000 HLPS 5,000
Feasibility Study Modified Two-Stage HCK 6. Result of Feasibility Study Feasibility Study Result Lube Product Description Base From New Scheme Delta 70N Yield, vol% Vis. (@100C) VI 10% 3.0 cst 104 6 % 3.0 cst 115 +13 100N Yield, vol% Vis. (@100C) VI 10% 4.3 cst 122 20 % 4.3 cst 128 +10% +6 250N Yield, vol% Vis. (@100C) VI 11% 7.6 cst 130 8 % 7.6 cst 132 +2 Total Lube Product 100N Product B/D Base + 6,000 B/D Base + 7,500
Feasibility Study Modified Two-Stage HCK 7. Summary FUELS HYDROCRACKER NAPHTHA, KEROSENE, DIESEL UCO PROJECT VHVI BASE OILS SK UCO TECHNOLOGY YUBASE UPGRADING VI, LUBE YIELD,WHITE OIL SK UCO TECHNOLOGY + ISODEWAXING HYDROCRACKER REVAMP SINGLE TWO STAGE - MORE PREMIUM LUBE - BETTER QUALITY - MORE PRODUCTION SK UCO TECHNOLOGY + CLG OPC HCK + ISODEWAXING