Refining and Petrochemical Integration Case Study

Ccile Plain

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Axens P2 Services: Your Partner for Major Projects

Asia-Pacific Market Highlights

Case Study: Refinery and Petrochemical Integration

Objectives and Definitions

Project Execution

Conclusions

Agenda

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Hydrographic Study and Marine Facility Design Petroleum Terminal Study

Project stage (Grassroots & running plants)

Added Value Activities

P2 Consulting Services

Site Location Evaluation

Feedstock & Product Market Analysis

Crude Opportunity

Commercial Excellence

Energy Efficiency GHG Mitigation

CO2 Credit Identification And Valorization

Risk Study & Environmental Impact Assessment

Oil Loss Reduction

Cost Estimation, Financial Analysis &

Risk Assessment

Linear Programming Services

Pre-feasibility Study

Feasibility Study

Conceptual Engineering Study

Integrated Process Solution 3

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

PROJECT PROGRESS

time

Start-up

PROJECT COST

ACCURACY

% Cost Estimation Accuracy

Pre-feasibility

Feasibility

Conceptual

Axens P2 BU

EPC CONTRACTOR Basic

Feed

Axens PL BU

Project Scope

P2 Scope of Work versus Cost Accuracy

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Agenda

Axens P2 Services: Your Partner for Major Projects

Asia-Pacific Market Highlights

Case Study: Refinery and Petrochemical Integration

Objectives and Definitions

Project Execution

Conclusions

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0.0

0.5

1.0

1.5

2.0

2.5

3.0

Axens & other sources

Market Structure 2010 vs. 2030

Other* = Kerosene ( Jet Kerosene), Refinery Gas, Petroleum Coke, NGL, Lubricants, Bitumen, Paraffin Wax, Refinery Losses,

2010-2030

AAGR

Other* 0.9%

LPG 0.4%

Naphtha 2.7%

Motor Gasoline 2.4%

Jet Kerosene 3.6%

On-road diesel 2.6%

Off-road diesel 1.2%

Fuel Oil 0.3%

Mbdoe

Incremental Demand 2010-2030

11.0%

15.6%

13.1%

3.7%

19.9%

14.8%

10.2%

11.7%

8.2%

13.8%

15.4%

5.3%

22.2%

17.6%

7.7%

9.9%

0%

20%

40%

60%

80%

100%

2010 2030

27.4 Mbdoe

39.2 Mbdoe

2010-2030 AAGR 1.8%

Oil Products Demand Asia Pacific 2030

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Petrochemical Products Demand 2004-2020

60000

100000

140000

180000

2004 2009 2014 2019

2000

6000

10000

14000

18000

2004 2009 2014 2019

World Asia 000 MT 000 MT

Ethylene

Propylene

+ 154 %

+ 54 %

+ 55 % + 56 %

Growth in Asian ethylene demand is equal to the very high worldwide demand growth

Growth in Asian propylene demand is significantly larger than global demand growth

Ethylene

Propylene

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Agenda

Axens P2 Services: Your Partner for Major Projects

Asia-Pacific Market Highlights

Case Study: Refinery and Petrochemical Integration

Objectives and Definitions

Project Execution

Conclusions

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Project: Key Figures World scale Refining & Petrochemical Plant Configuration Study

20 bn$ Investment

Meet primary C2-C4 olefins demand

Heavy, sour Middle East crude input

3 Mt/y Naphtha Cracker Did you know? The project is one of the worlds most extensive integrated refining and

petrochemical complexes 300 000 bbl/day Crude Distillation

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Key Project Objectives

Kick-off

meeting

Milestone I Milestone II

Project

accomplishment

Time

Project shall

capture demand growth for high value-added petrochemical specialties

be flexible and fit into existing refining system

meet future refined product demand and specifications

create opportunities for the development of a major industrial hub including new maritime infrastructures

10

020

40

60

80

100

C2 = C3 = C4 =

Steam Cracker

Refinery

% of demand Production Plant

5 Units

15 Units

8 Units 5 Units 6 Units

Total of 42 Process Units

C5 = 3 Units

Axens P2 ensured integration of facility.

Refining and Petrochemical Integration

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Optimization of refinery process configuration and steam cracker integration

Initial decision: Feed a stream cracker with naphtha from a refinery

Petrochemical production is a complex business which differs from refining

Development of different derivatives plant options with high-profile licensor partners in close collaboration with the client

Options ranked based on a preliminary cost estimate and financial analysis

Value-Addition with Petrochemical Derivatives

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2012-2025 Motor Fuels Demand

& Future product specifications (Euro IV)

Light

Medium

Heavy

Export of excess to

region

Type of crude input to be studied was

predefined by customer

Identify intermediates that can be exchanged

between sites. Other investments?

Integration and Synergy Between Sites

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Integrating a refinery with a steam naphtha cracker and petrochemical facilities offers the best ROI for

satisfaction of the C2-C4 demand

But how can the value and benefits of a new refinery be optimized?

Maximize conversion of residue to

transportation fuels

Heavier crude

processed

Best value for cracker feed, satisfy fast-growing gasoline demand and unprecedented crude-processing flexibility

Main targets for refinery

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Multi-criteria site localization study

+ Three phase harbor implementation study

Geographic

localization

Harbor

Infrastructure

Harbor to

site transfer

Infrastructure

Most suitable location Shipping Channels

Jetties Storage facilities

Rail Road Waterways

Three potential sites Identified and ranked by

multi criteria considerations:

Social impact Local economics Environmental constraints

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Axens P2 Services: Your Partner for Major Projects

Asia-Pacific Market Highlights

Case Study: Refinery and Petrochemical Integration

Objectives and Definitions

Project Execution

Conclusions

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Phase 1b Steam Cracker and

Refinery integration

Phase 1a Conversion strategy

screening

Axens in-house tools and data

Phase 2

Petrochemical Intermediates & Value added

products

Consulting with petrochemical

licensors

Axens know-how and co-operation with

third party licensors

Phase 3

Process specifications

(Pre-basic design)

Class V cost estimation (+/- 50%)

Class IV cost estimation (+/- 30%)

Optimal communication environment ensured by dispatch of client task force to Axens head office

Project Technical Phases: Duration: 1 year

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Phase 1a: Conversion Strategy Screening

0

0.5

1

1.5

2

Mbdoe

Coking

Cat. Cracking

Hyd. Cracking

Heavy Oil / Res. Fuel

Asia-Pacific Conversion Capacity

No single correct strategy. Conversion type is closely

related to the countrys future demand.

All options studied. Best two options were: Coker / MHC / DCC versus ARDS / RFCC

Distillates / Olefins versus Gasoline / Olefins

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CAPEX Advantages: optimized yields, shared utility production OPEX Advantages: energy efficiency by utility consumption

Optimization with LP Model

Feedstock LPG, Naphtha, Distillates, HCK

Unconverted Oil

Refining capacity Domestic demand

Export market

Bottom-of-the-barrel Coker or Visbreaker

Maxi Diesel scheme

Petchem plant Ethylene production volume constraints

Phase 1b: Cracker and Refinery Integration

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Typical Naphtha Steam Cracker

Products

Many different value added products can be produced (Hygiene, Automobile, Pharma, ) from precursors

Configuration study based on clients petchem strategy, petrochemical licensor know-how, local economics, trading and future market

Decision has major impact on future plant economics (ROI).

Phase 2: Value-added Products

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Overall Design Basis Environment and safety Class IV Cost Estimates Financial and risk

analysis

Overall Plot Plan

General Project

Process Flow Diagrams Material & Utility

balances

Sized Equipment List Catalyst and Chemical

Consumption

Effluents, Waste and Environment

Flare Loading

Process

Infrastructure

Liquid Bulk handling Dry Bulk Export Container handling Jetty and Haul Road Gas Feeding Pipe

Utilities

Off-sites

Tankage Buildings

Fuel Gas Systems Power and Steam

Generation

Water Systems Plant Air

Phase 3: Process Specifications

Ready for FEED!

500 Documents

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Highly complex and complete detailed feasibility study performed within tight schedule.

Project is currently in FEED phase

Successful collaborative project for Axens and Client (win win situation)

Axens is the ideal partner for Refining and Integrated studies because of its immediate access to a wealth of proprietary information.

Conclusions

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