Post on 14-Aug-2019
A World of Solutions
Crude to Chemicals Opportunities and Challenges of an
Industry Game-Changer
January 23, 2017
MERTC, Bahrain
Daniel McCarthy, Executive Vice President Group President of Technology, CB&I
A World of Solutions 2
Safe Harbor Statement
This presentation contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases or expressions such as “achieve,” “forecast,” “plan,” “propose,” “strategy,” “envision,” “hope,” “will,” “continue,” “potential,” “expect,” “believe,” “anticipate,” “project,” “estimate,” “predict,” “intend,” “should,” “could,” “may,” “might” or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors and “Forward-Looking Statements” described under “Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2015, and any updates to those risk factors or “Forward-Looking Statements” included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference.
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CB&I Overview
~40,000 employees Breadth of services from wellhead to polymers Recent technology portfolio expansions LC-Fining → LC-Max → LC-Slurry … >99% conversion of crude Start up of world’s largest PX unit (2,200 KTA) at Reliance AlkyClean (solid acid catalysis alkylation) - in operation E-Gas: Coke & Pitch – world’s largest gasification unit - 2017 start up at Reliance NET Power – superheated CO2 cycle - 50 MW demo unit in construction
A Leading Provider of Technology and Infrastructure for the Energy Industry
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For more than 100 years, Lummus Technology has been recognized as one of the energy industry’s leading providers of licensed process technology
CB&I acquired Lummus Technology in 2007 and has been developing and expanding the technology portfolio for 10 years
Our robust technology offering and legacy of excellence in engineering and construction are unmatched in the industry
Lummus Technology is CB&I
LUMMUS TECHNOLOGY
IS CB&I
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Recent Industry Trends – Petrochemicals
Ethylene growth rate continues to be 4-5% per year Percentage of ethylene from ethane increasing driven by North America Limited supply of ethane in most of GCC → shift to liquid feeds Where will crackers be built?
Gas crackers in North America Liquid crackers in Middle East and Asia
Brent Crude Oil = $65/bbl US Natural Gas = $2.7/mmbtu US Ethane = $133/ton
Cash
Cos
t
Mid EastEthane
N America LPG
N AmericaEthane
W Europe LPG
Mid East LPG/Naphth
Rest of World
China Coal
Asia LPG
N America Naphtha
Asia Naphtha
W Europe Naphtha
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Refined products landscape has changed ~1% growth in refined products Gasoline demand remains flat Increased supply of NGLs Distillate demand growth modest IMO sulfur specs for bunker fuel to
be implemented 2020 → fuel oil reduction
Recent Industry Trends – Refined Products
Source: IEA
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Oil prices volatile (~ $45-55/Bbl) Multiple supply sources make oil
prices unpredictable: OPEC initiatives to manage supply US tight oil resilient Canadian syncrude production flat
Crude volatility +/- 100% Polymer volatility +/- 40%
Recent Industry Trends – Oil
Greater petrochemical price stability drives advantage to
monetize crude by conversion to petrochemical products
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The ethylene cracker is the heart of the petrochemical production center
Feedstock flexibility is required (ethane → VGO) Optimal utilization of C4s depends on local economics Control of propylene to ethylene ratio OCT (Olefins Conversion Technology) provides lower cost conversion
flexibility to produce propylene / ethylene / butylenes
Configuration Analysis: Cracker Strategy
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Ethylene Feed
C4 Feed C4 Plus
Propylene Product
Lights Purge
C4 Recycle
Recycle Ethylene
Reactor Feed Heater OCT
Treater
OCT – Maximum Flexibility
Deet
hyle
nize
r
Depr
opyl
enize
r
OCT Reactor
300 kta Propylene 200 kta Butene
100 kta Ethylene
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Crude to Chemicals
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Change in Mindset in OTC
CRUDE
Transportation Fuels
Chemicals CRUDE
Chemicals
Transportation Fuels (Optional)
Fixed Qty. In KTA
Fixed Barrels
Traditional
OTC
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Polynuclear aromatics Lowest olefin yields High coking rate
Residue Extreme coking rate Contains asphaltenes that are difficult to vaporize
Solids (asphaltenes and coke) will form during vaporization and cracking Asphaltenes are soluble in aromatics and insoluble in paraffins Coke is insoluble in both
However – There are challenges
H H
H
H H
H
H
H
H
H H H
CH2
H H
H H
H H
H H
CH2 CH3
CH2
S
O
N
S
N
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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
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 stage dependent on crude gravity
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0
100
200
300
400
500
600
700
800
900
0 10 20 30 40 50 60 70 80 90 100
TBP
Tem
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
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CB&I HOPS technology successfully employed for condensates and extra light crudes
Potential large volume of residue to be sold
For most crudes an intermediate step is essential
Mainly a niche application
Summary of Direct Crude Cracking
Miracle of hydrogen addition
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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%
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Crude to Chemicals Configurations
Matching the Refinery & the Chemicals
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Minimum Investment – Hydrocracking - No Fuels – HSFO
- No Residue Upgrading - Hydrocracking to produce cracker feed - Produce HSFO - Maximum petrochemicals / No fuels production
Naphtha, C2, LPG
Kero/Diesel
MTBE
Benzene
Mixed Xylenes
HSFO54,000 BPD
Atm
. Tow
er
Vac. Tow
er
ISOCRACKING
EthyleneCrackerComplex
+
Olefins Conversion Technology
Ethylene 2,000 KTA
Propylene
Butadiene
Py. Oil
Hydrogen
Naphtha, C2, LPG
Crude195,000 BPD
Butene-1
Notes 1. All cases includes Hydrocracker + Olefins Conversion Technology 2. All cases produces MTBE, Butene-1, Benzene, Xylenes 3. 3% HSFO priced at $21/Bbl less than crude 5. %IRR based on 70 / 30 debt / equity ratio
Crude (Arab Light), BPD 195,000Ethylene, KTA 2,000Propylene, KTA 1,480Butadiene, KTA 357Euro VI Diesel, BPD 0Fuel Oil, BPD 54,000Anode Coke, KTA 0H2 Required, MMSCFD 167% Required H2 from Cracker 39Natural Gas Required, KTA 596Chemical Yield on Crude, % 58Total Project Cost, MM$ 6,954%IRR 14.6
3%S HSFO
Minimum Investment; No Resid Upgrader; No Fuels; Sell HSFO
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Residue Hydrocracking offers maximum conversion and
crude flexibility
Hydroprocessing
VR Conversion
LC-MAX
Heavy South American VR (Hamaca)
Russian VR
Middle Eastern VR
Canadian Heavy
SDA Pitch LC-FINING
LC-SLURRY
Slurry Catalyst
Pellet Catalyst
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LC-FINING – No Fuels – LSFO
- LC-FINING as Residue Upgrading - Hydrocracking to produce cracker feed - Produce LSFO - Maximum petrochemicals / No fuels production
Naphtha, C2, LPG
Kero/Diesel
MTBE
Benzene
Mixed Xylenes
VGO
1%S LSFO
25,000 BPD
Atm
. Tow
er
Vac. Tow
er
ISOCRACKING
LC-FINING
EthyleneCrackerComplex
+
Olefins Conversion Technology
Ethylene 2,000 KTA
Propylene
Butadiene
Py. Oil
Hydrogen
Naphtha, C2, LPG
Crude162,000 BPD Butene-1
Crude (Arab Light), BPD 162,000
Ethylene, KTA 2,000Propylene, KTA 1,493Butadiene, KTA 358Euro VI Diesel, BPD 0Fuel Oil, BPD 25,000Anode Coke, KTA 0H2 Required, MMSCFD 251% Required H2 from Cracker 26Natural Gas Required, KTA 777Chemical Yield on Crude, % 70Total Project Cost, MM$ 7,995%IRR 22.4
1%S LSFO
LC-FINING; No Fuels; Sell LSFO
Notes 1. All cases includes Hydrocracker + Olefins Conversion Technology 2. All cases produces MTBE, Butene-1, Benzene, Xylenes 3. 3% HSFO priced at $21/Bbl less than crude 5. %IRR based on 70 / 30 debt / equity ratio
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LC-FINING – With Fuels – LSFO
- LC-FINING as Residue Upgrading - Hydrocracking to produce cracker feed - Produce LSFO - Fuels production
Naphtha, C2, LPG
Kero/Diesel
MTBE
Benzene
Mixed Xylenes
VGO
74,500 BPD
1%S LSFO
20,000 BPD
Atm
. Tow
er
Vac
. Tow
er
ISOCRACKING
LC-FINING+ HT
EthyleneCrackerComplex
+
Olefins Conversion Technology
Propylene
Butadiene
Py. Oil
Hydrogen
Naphtha, C2, LPG
Crude227,000 BPD
Butene-1
Euro V / VI Diesel
Ethylene 2,000 KTA
Crude (Arab Light), BPD 227,000
Ethylene, KTA 2,000Propylene, KTA 1,469Butadiene, KTA 347Euro VI Diesel, BPD 74,500Fuel Oil, BPD 20,000Anode Coke, KTA 0H2 Required, MMSCFD 379% Required H2 from Cracker 18Natural Gas Required, KTA 1,011Chemical Yield on Crude, % 49Total Project Cost, MM$ 8,910%IRR 24.4
1%S LSFO
LC-FINING With Fuels; Sell LSFO
Notes 1. All cases includes Hydrocracker + Olefins Conversion Technology 2. All cases produces MTBE, Butene-1, Benzene, Xylenes 3. 3% HSFO priced at $21/Bbl less than crude 5. %IRR based on 70 / 30 debt / equity ratio
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LC-FINING – With Fuels – LSFO
- LC-FINING as Residue Upgrading - Hydrocracking to produce cracker feed - Produce LSFO - Fuels production
Notes 1. All cases includes Hydrocracker + Olefins Conversion Technology 2. All cases produces MTBE, Butene-1, Benzene, Xylenes 3. 3% HSFO priced at $21/Bbl less than crude 5. %IRR based on 70 / 30 debt / equity ratio
Crude (Arab Light), BPD 400,000
Ethylene, KTA 4,000Propylene, KTA 2,805Butadiene, KTA 774Euro VI Diesel, BPD 94,265Fuel Oil, BPD 36,935Anode Coke, KTA 0H2 Required, MMSCFD 665% Required H2 from Cracker 22Natural Gas Required, KTA 1,872Chemical Yield on Crude, % 57Total Project Cost, MM$ 14,173%IRR 33.0
1%S LSFO
LC-FINING With Fuels; Sell LSFO - Two Train Cracker
Two Train Cracker
Naphtha, C2, LPG
Kero/Diesel
MTBE
Benzene
Mixed Xylenes
VGO
94,265 BPD
1%S LSFO
36,935 BPD
Atm
. Tow
er
Vac
. Tow
er
ISOCRACKING
LC-FINING+ HT
EthyleneCrackerComplex
+
Olefins Conversion Technology
Propylene
Butadiene
Py. Oil
Hydrogen
Naphtha, C2, LPG
Crude400,000 BPD
Butene-1
Euro V / VI Diesel
Ethylene 4,000 KTA
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LC-FINING + Delayed Coking: No Fuels/No Fuel Oil – Anode Coke
- LC-FINING + DCU - Hydrocracking to produce cracker feed - Produce anode coke - Maximum petrochemicals / No fuels production
Naphtha, C2, LPG
Kero/Diesel
MTBE
Benzene
Mixed XylenesLCGO/HCGO
VGO
UCO
194 KTA
Atm
. Tow
er
Vac
. Tow
er
ISOCRACKING
DelayedCoking
Anode Coke
LC-FINING
EthyleneCrackerComplex
+
Olefins Conversion Technology
Ethylene 2,000 KTA
Propylene
Butadiene
Py. Oil
Hydrogen
Naphtha, C2, LPG
Crude138,000 BPD Butene-1
Notes 1. All cases includes Hydrocracker + Olefins Conversion Technology 2. All cases produces MTBE, Butene-1, Benzene, Xylenes 3. 3% HSFO priced at $21/Bbl less than crude 5. %IRR based on 70 / 30 debt / equity ratio
Crude (Arab Light), BPD 137,689
Ethylene, KTA 2,000Propylene, KTA 1,481Butadiene, KTA 373Euro VI Diesel, BPD 0Fuel Oil, BPD 0Anode Coke, KTA 194H2 Required, MMSCFD 282% Required H2 from Cracker 24Natural Gas Required, KTA 794Chemical Yield on Crude, % 83Total Project Cost, MM$ 8,492%IRR 21.4
Anode Coke
LC-FINING + Delayed Coking; No Fuels; Produce Anode Coke
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LC-Slurry with Fuels – ULSFO
- LC-Slurry - Hydrocracking to produce cracker feed - Petrochemicals with fuels production
Naphtha, C2, LPG
Kero/Diesel 246,500 BPD
VGO
106,000 BPD
0.1%S ULSFO8,500 BPD
Atm
. Tow
er
Vac
. Tow
er
ISOCRACKING
LC-Slurry + HT
EthyleneCrackerComplex
+ Olefins Conversion
Technology
Ethylene 2,000 KTA
Propylene
Butadiene
Py. Oil
Hydrogen
Naphtha, C2, LPG
Crude
Benzene
MTBE
Mixed Xylenes
Euro V / VI Diesel
Notes 1. All cases includes Hydrocracker + Olefins Conversion Technology 2. All cases produces MTBE, Butene-1, Benzene, Xylenes 3. 3% HSFO priced at $21/Bbl less than crude 5. %IRR based on 70 / 30 debt / equity ratio
Crude (Arab Light), BPD 246,515Ethylene, KTA 2,000Propylene, KTA 1,489Butadiene, KTA 326Euro VI Diesel, BPD 106,000Fuel Oil, BPD 8,500Anode Coke, KTA 0H2 Required, MMSCFD 417% Required H2 from Cracker 16Natural Gas Required, KTA 992Chemical Yield on Crude, % 45Total Project Cost, MM$ 9,285%IRR 25.0
ULSFO
LC-Slurry With Fuels; Produce ULSFO
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Crude Flexibility: design balances light and heavy crudes Opportunity of low cost crudes without excessive CAPEX
Residue upgrading depends on:
Quantity / quality of transportation fuels & fuel oil Power/hydrogen strategy
Gasification provides flexibility where natural gas has limited availability
Middle of the barrel processing objectives Hydrogen production strategy
Middle of the barrel processing depends on desired product slate:
Lubes Gasoline vs. Jet vs. Diesel Aromatics High quality / quantity of cracker feed
High on-stream factor: match refining to petrochemicals
Configuration Analysis: Refinery Strategy
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Analysis of Crude to Chemicals Complexes: Case Studies
Minimum Investment; No
Resid Upgrader; No Fuels; Sell
HSFOLC-FINING; No
Fuels; Sell LSFOLC-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
ULSFOCrude (Arab Light), BPD 195,000 162,000 227,000 400,000 137,689 246,515Ethylene, KTA 2,000 2,000 2,000 4,000 2,000 2,000Propylene, KTA 1,480 1,493 1,469 2,805 1,481 1,489Butadiene, KTA 357 358 347 774 373 326Euro VI Diesel, BPD 0 0 74,500 94,265 0 106,000Fuel Oil, BPD 54,000 25,000 20,000 36,935 0 8,500Anode Coke, KTA 0 0 0 0 194 0H2 Required, MMSCFD 167 251 379 665 282 417% Required H2 from Cracker 39 26 18 22 24 16Natural Gas Required, KTA 596 777 1,011 1,872 794 992Chemical Yield on Crude, % 58 70 49 57 83 45Total 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 25.0Notes
1. 3%S HSFO 1%S LSFO 1%S LSFO 1%S LSFO Anode Coke 0.1%S ULSFO2.3.4.5.
All cases includes Hydrocracker + Olefins Conversion TechnologyAll cases produces MTBE, Butene-1, Benzene, Xylenes3% HSFO priced at $21/Bbl less than crude%IRR based on 70 / 30 debt / equity ratio
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CB&I/CLG has a complete technology portfolio to upgrade ANY crude to chemicals in the most cost effective manner
HOPS technology successfully implemented for condensate / low residue crudes, but limited by crude slate
Hydrocracking provides optimum cracker feed quality
LC-FINING / LC-Slurry with or without fuels has good economics
Best economics achieved with world scale cracker and refinery capacity
Summary
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Copyright 2017, CB&I Inc. All rights reserved