maximum value addition through flexible upgrading of crude ... · a chevron and cb&i joint...

A Chevron and CB&I Joint Venture

© 2017 Chevron Lummus Global. All Rights Reserved. Company Confidential

Maximum Value Addition through

Flexible Upgrading of Crude to

Transportation Fuels and Petrochemicals

Ujjal Mukherjee

Vice President, Technology

Chevron Lummus Global

ERTC-GPS Summit

Athens, Greece

November 2017

2 © 2017 Chevron Lummus Global. All Rights Reserved. A World of Solutions

2

Changing Refined Product Landscape

0.5-1% growth in refined products

Gasoline demand remains flat

Pressure on Gasoline likely from Electric Cars and Hybrids within the next decade

Jet and Diesel demand growth modest

IMO sulfur specs for bunker fuel to be implemented 2020 → very significant high sulfur fuel oil reduction

Recent Industry Trends – Refined Products

Source: IEA

3 © 2017 Chevron Lummus Global. All Rights Reserved. A World of Solutions

3

Oil prices volatile (~ $45-55/Bbl)

Multiple supply sources make oil prices unpredictable:

OPEC initiatives to manage supply

Resiliency of US tight oil

Crude volatility +/- 100%

Polymer volatility +/- 40%

Recent Industry Trends – Oil and Petrochemicals

Greater petrochemical price

stability drives advantage to

monetize crude by conversion to

petrochemical products

Propylene to Ethylene Price Ratios vary widely by region (0.7-1.2)

Olefin Production Margin vary widely based on feedstock source and by region

Refineries provide an excellent route to naphtha and other feedstocks for crackers from cheap crude

4 © 2017 Chevron Lummus Global. All Rights Reserved.

On-Purpose Production of Petrochemicals

Naphtha

Ethylene

Propylene

Butadiene Butylenes

Olefins Plant Refinery

Gas Plant Ethylene Plant Natural Gas

Ethane Ethylene

Benzene

Propane Butane


Change in Mindset in Crude to Chemicals

Crude

Transportation

Fuels

Chemicals Crude

Chemicals

Transportation Fuels (Optional)

Fixed Qty

in KTA

Fixed

Barrels

Traditional

Crude to Chemicals


Crude Cracking via Heavy Oil Processing Scheme

(HOPS)

Direct crude cracking can be achieved using Heavy Oil Processing Scheme (HOPS)

Lummus patented the HOPS

4 units were designed and commissioned

Elimination of CDU and/or VDU with multi-stage HOPS

Lowest investment solution

Careful adjustment of temperature profile and steam addition to minimize fouling

Dilution

Steam

Naphtha Cut

Storage Naphtha

Heaters

Dilution

Steam Residue

VGO Cut

VGO

Heaters

Dilution

Steam

AGO Cut

Storage

AGO

Heaters

Crude

Number of HOPS stages dependent on crude gravity


0

100

200

300

400

500

600

700

800

900

0 20 40 60 80 100

TB

P T

em

pera

ture

, C

°

Vol% Distilled

Condensate

Pen.Lt.Crude 5%

Arab Light 20%

Arab HVY 30+%

What are the Challenges?

Typically the heaviest material (residue) must be removed before cracking

Residue

Crude residue

fraction much

larger


Summary of Direct Crude Cracking

CB&I HOPS technology successfully employed for

condensates and extra light crudes – niche application

Potential large volume of residue to be sold for heavier

crudes

For most crudes an intermediate step is essential with

molecular management to maximize production of

desired petrochemicals

Miracle of hydrogen addition


The Miracle of Hydrogen Addition

>2.0 MM MTA of Ethylene can be produced from 140,000 – 200,000 BPSD

of AL Crude depending on flowscheme

Hydrocracking of Residue and Distillates provides the most efficient route to feeding the Ethylene Cracker in terms of Feed Flexibility AND Conversion Yield

0% 5% 10% 15% 20% 25% 30% 35%

Raw VGO ᷉ 18 wt%

Hydrocracked VGO ˜ 32 wt%

Ethylene Yield / wt%


What should we do?

Should we convert crude completely

to chemicals or should the

configuration be able to produce

transportation fuels as well – on

demand?


Adding Hydrogen – Residue and

Distillate Hydrocracking

Reformate

Atm

. Tow

er

Vac. Tow

er

ISOCRACKING

DelayedCoking

CatalyticReforming

AromaticsProduction

Anode Grade Coke

Benzene

LC-FINING

EthyleneCrackerComplex

Paraxylene

Ethylene

Propylene

Butadiene

Hydrogen

Lt. Naphtha, C2, LPG

Crude

UCO

Lt. Naphtha, C2, LPG

Fuels as

Required

Versatile Hydrocracking Process that

partially or totally converts gas oils to

maximum naphtha or distillates –

Hydrogen addition and molecular

transformation


Enhancing Margin with Hydrocracking

and Ethylene Complex

Naptha, C2, LPG

Kero/Diesel

LCGO/HCGO

VGO

UCO

Atm

. Tow

er

Vac. Tow

er

ISOCRACKING

DelayedCoking

Anode Coke toAluminum Smelter

LC-FINING


Ethylene

Propylene

ButadieneHydrogen

Naphtha, C2, LPG

Crude

Benzene

Mixed Xylenes

MTBE

Diesel

UCO

Lt. Py. Oil

Hvy. Py. Oil


Enhancing Margin with Hydrocracking

and Ethylene Complex

Naptha, C2, LPG

Kero/Diesel

Hydrogen

VGO

Pitch

Atm

. Tow

er

Vac. Tow

er

ISOCRACKING

E-Gas

LC-MAX


Olefins Recovery; Olefins Conversion Technology;

Butadiene Extraction Unit;MTBE Unit; C4 Selective Hydro+Butene-1 Recov.;

Pyrolysis Gasoline Treatment;Aromatics Extraction;

Disproportionation

Ethylene

Propylene

Butadiene

Py. Oil

Hydrogen

Naphtha, C2, LPG

Crude

Power

Benzene

MTBE

Mixed XylenesTotal

Conversion to Naphtha Mode


Complete Crude Conversion …

Naptha, C2, LPG

Hydrogen

Hydrogen

Atm

. Tow

er

Vac. Tow

er ISOCRACKING

LC-SLURRY

Ethylene

Propylene

Benzene

Light Py. Oil

Naphtha, C2, LPG

Crude

Ultra Low Sulfur Fuel Oil


Olefins Recovery

Butadiene Extraction Unit

MTBE Unit

C4 Selective Hydro+Butene-1 Recov.

DPG 1 and 2

Aromatics Extraction

Disproportionation

Butadiene

MTBE

Mixed Xylenes

Heavy Py. Oil


Light to Moderately Heavy Crudes with

Large Gasoline and Propylene Demands

HCO

Atm

. Tow

er

RFCC

ARDS

Ethylene Cracker

Complex

C2/LPG/Naphtha

High SulfurFuelOil

HDT

Crude

Diesel

LCO

Benzene

Ethylene

Propylene

Butadiene

Mixed Xylenes/

p-Xylene

Gasoline


Analysis of Crude to Chemicals Complexes

Some Case Studies

Minimum

Investment; No

Resid Upgrader;

No Fuels; Sell

HSFO

LC-FINING; No

Fuels; Sell LSFO

LC-FINING With

Fuels; Sell LSFO

LC-FINING With

Fuels; Sell LSFO -

Two Train Cracker

LC-FINING +

Delayed Coking;

No Fuels;

Produce Anode

Coke

LC-Slurry With

Fuels; Produce

ULSFO

Crude (Arab Light), BPD 195,000 162,000 227,000 400,000 137,689 246,515

Ethylene, KTA 2,000 2,000 2,000 4,000 2,000 2,000

Propylene, KTA 1,480 1,493 1,469 2,805 1,481 1,489

Butadiene, KTA 357 358 347 774 373 326

Euro VI Diesel, BPD 0 0 74,500 94,265 0 106,000

Fuel Oil, BPD 54,000 25,000 20,000 36,935 0 8,500

Anode Coke, KTA 0 0 0 0 194 0

H2 Required, MMSCFD 167 251 379 665 282 417

% Required H2 from Cracker 39 26 18 22 24 16

Natural Gas Required, KTA 596 777 1,011 1,872 794 992

Chemical Yield on Crude, % 58 70 49 57 83 45

Total Project Cost, MM$ 6,954 7,995 8,910 14,173 8,492 9,285

%IRR 14.6 22.4 24.4 33.0 21.4 25.0

Notes

1. 3%S HSFO 1%S LSFO 1%S LSFO 1%S LSFO Anode Coke 0.1%S ULSFO

2.

3.

4.

5.

All cases includes Hydrocracker + Olefins Conversion Technology

All cases produces MTBE, Butene-1, Benzene, Xylenes

3% HSFO priced at $21/Bbl less than crude

%IRR based on 70 / 30 debt / equity ratio


Features of Most Projects

Different Mindset : Petrochemicals are measured in KTA of product;

refineries in barrels of feed. PC unit feedstocks require precise quality; fuels

are more forgiving.

Require high on-stream factor in refining technologies to match

Petrochemicals on-stream factor.

Flexibility in Crude and Product Slate because crude and product pricing

and product demand can shift dramatically. Balance between Light and

Heavy Crudes to take opportunity of low cost crudes without excessive

CAPEX.

High Residue Conversion a necessity.

RDS-RFCC attractive when gasoline/propylene market is good

Residue Hydrocracking offers maximum conversion and crude flexibility.

Hydrocracking provides the best mix of petrochemical feedstock AND

transportation fuels.

World Scale Steam Cracker with adequately sized refinery provides

highest margins on Crude Conversion and Maximum Flexibility.


Thank You!

18 Courtesy – GS Caltex

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