UntitleHE_COVER.indd 1 6/30/17 9:41 AM

August 2017

Maximize safety & uptime, visit cw-estgroup.com/he08 today! EST Group

Pop-A-Plug Tube Plugs are pressure rated up to 7000 PsiG (483 BarG) and conform to ASME PCC-2-2015 recommended tube plugging repair methods, offering a permanent mechanical solution to safely seal leaking heat exchanger tubes without welding or hot work. Installation takes only minutes, providing superior reliability for critical processes. Full material traceability documentation available.

Pop-A-Plug® Heat Exchanger Tube Plugging System

STOP USING TAPERED PINS

Using hammer-in tapered pins in applications above 200 PsiG (14 BarG) puts onsite safety, surrounding equipment and operating time at risk as they may eject during service when units are pressurized.

Hydrocarbon Engineering (August Issue) v2 7.25.2017.indd 1 7/25/2017 2:33:07 PM

Hydrocarbon Engineering

likeHydrocarbonEngineering

connect joinHydrocarbonEngineering

@HydrocarbonEngfollow CONVERSATION

JOIN THE2017 Member of ABC Audit Bureau of Circulations

Copyright© Palladian Publications Ltd 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying,

recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither

do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK. Uncaptioned images courtesy of www.shutterstock.com.

CONTENTS

THIS MONTH'S FRONT COVER

August 2017 Volume 22 Number 08 ISSN 1468-9340

03 Comment

05 World News

12 Due processContributing Editor, Gordon Cope, examines the northwest corner of the North American continent and its great potential for gas processing.

18 Little by littleDavide Costa, Econova Corporate S.p.A., Italy, and Ulrich Nanz, Sandvik Process Systems, Germany, discuss the implementation of a new sulfur handling system at the Sarroch refinery in Sardinia.

25 A game changer?Benoît Mares and Christian Streicher, Prosernat, France, reveal the benefits of compact modular sulfur recovery solutions.

29 Meeting expectations (part one)John Griffiths, Trevor Smith, Stephen Caskey, Emily Harrell, James Gaspar and Abhishek Kadam, Honeywell UOP, USA, provide an overview of the solutions that can help meet carbon disulfide specifications for petrochemical grade naphtha products.

34 The shale treasure huntTina Edvardsson, Linde Engineering North America, USA, outlines the challenges that must be overcome to unlock the potential value in shale rock.

39 Getting to know nitrogenM. Sirajuddin, Gas Land Inc., USA, discusses nitrogen generation and its application options in LNG plants.

42 Assess the damageManabu Saga, Shugo Iwasaki, and Yuzo Tsurusaki, Mitsubishi Heavy Industries Compressor Corp., Japan, introduce an innovative repair method for mechanical drive steam turbines that have experienced catastrophic damage.

49 Advance to goAnnamaria Signorini, GE Oil & Gas, Italy, and Stefano Dettori and Valentina Colla, Center ICT for Complex Industrial Systems and Processes (ICT-COISP) Scuola Superiore Sant'Anna-TeCIP Institute, Italy, explore recent advances in steam turbine condition monitoring for downstream oil and gas.

53 Driving OEE improvementsGeorge Buckbee, Metso, USA, shows how implementing modern condition monitoring methods can have a positive impact on overall equipment effectiveness.

57 ThefiltersettingchallengeRobert Eisenmann Jr., BP Refining Technology and Engineering, USA, and Oliver Franz, PROGNOST, Germany, outline important considerations when using crosshead acceleration and frame velocity to monitor and protect a reciprocating compressor.

63 Predicting performanceMassimiliano Di Febo and Pasquale Paganini, IPC, Italy, outline how to predict centrifugal compressor performance in an off-design condition.

71 Compressor of choice (part one)Michael Rimmer and Grant Johnson, Costain, UK, discuss how owner operators can maximise value through compressor selection.

75 COMPRESSOR REVIEWHydrocarbon Engineering provides an overview of the most advanced compressor equipment, technology and services available to the downstream oil and gas processing industry.

96 15 facts on...This month we give you 15 facts on Alaska!

Mitsubishi Heavy Industries Compressor International (MCO-I) recently completed the manufacturing and packaging of two steam turbines and one compressor for a critical footprint replacement project at its Houston-based packaging and service facility, Pearland Works. The company's field service team installed the equipment to complete a time-sensitive turnaround at a Gulf Coast petrochemical plant. For more information on MCO-I’s capabilities, contact: sales@mhicompressor.com

think sulphur think sandvik

a WOrld lEadEr in sulphur prOCEssinG and handlinG

We design, manufacture and commission equipment for every aspect of sulphur processing, from upstream handling and a range of granulation options to downstream conveying, storage and bulk loading.

n Engineering & consulting

n Efficient sulphur degassing

n Premium Rotoform® pastillation

n High capacity granulation

n High performance remelting

n Handling, storage and loading

n Global service and spare parts

Sandvik Process Systems, division of sandvik Materials technology deutschland Gmbh, salierstr. 35, 70736 Fellbach, Germany tel: +49 711 5105-0 · Fax: +49 711 5105-152 · info.spsde@sandvik.com · www.processsystems.sandvik.com

SANDVIK_Sulphur_Ad_ART_2017_A4_PTQ.indd 1 03/04/2017 10:21

CONTACT INFO

MANAGING EDITOR James Littlejames.little@hydrocarbonengineering.com

EDITOR Callum O'Reillycallum.oreilly@hydrocarbonengineering.com

ADVERTISEMENT DIRECTOR Rod Hardyrod.hardy@hydrocarbonengineering.com

ADVERTISEMENT MANAGER Chris Atkinchris.atkin@hydrocarbonengineering.com

ADVERTISEMENT EXECUTIVE Dmitry Oleynikdmitry.oleynik@hydrocarbonengineering.com

DIGITAL ASSISTANT EDITOR Angharad Lockangharad.lock@hydrocarbonengineering.com

PRODUCTION Ben Munroben.munro@hydrocarbonengineering.com

WEB MANAGER Tom Fullertontom.fullerton@hydrocarbonengineering.com

SUBSCRIPTIONS Laura Whitelaura.white@hydrocarbonengineering.com

ADMINISTRATION Nicola Fullernicola.fuller@hydrocarbonengineering.com

CONTRIBUTING EDITORSNancy Yamaguchi Gordon Cope

SUBSCRIPTION RATESAnnual subscription £110 UK including postage /£125 overseas (postage airmail). Two year discounted rate £176 UKincluding postage/£200 overseas (postage airmail).

SUBSCRIPTION CLAIMSClaims for non receipt of issues must be made within 3 months of publication of the issue or they will not be honoured without charge.

APPLICABLE ONLY TO USA & CANADAHydrocarbon Engineering (ISSN No: 1468-9340, USPS No: 020-998) is published monthly by Palladian Publications Ltd GBR and distributed in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831. Periodicals postage paid New Brunswick, NJ and additional mailing offices. POSTMASTER: send address changes to HYDROCARBON ENGINEERING, 701C Ashland Ave, Folcroft PA 19032

15 South Street, Farnham, Surrey GU9  7QU, ENGLAND Tel: +44 (0) 1252 718 999Fax: +44 (0) 1252 718 992

COMMENTCALLUM O'REILLYEDITOR

F rom time to time, we can all be guilty of a little procrastination. Well, I certainly can anyway. The time and effort required to produce the magazine that you

are currently reading, as well as our quarterly Tanks & Terminals supplement and the latest

news for our website (www.hydrocarbonengineering.com), can occasionally mean that certain jobs are left on the ‘to do tomorrow’ pile. While it’s unusual for an urgent or important task to be left for too long, the little jobs can quickly add up: a bulging email inbox that needs managing, an industry report that needs reading, a round of tea that needs brewing. I am currently delaying refilling my stapler. That can wait until tomorrow.

Eventually, however, all of these small but essential tasks need completing, and the consequences of delaying certain jobs for too long can be disastrous (you don’t want to be the one who never makes the tea in our office).

KBC Advanced Technoloigies recently issued a warning that the refining industry may be guilty of delaying its preparations for an impending change that is set to have a significant impact on the industry. Last year, the International Maritime Organization (IMO) announced that it is to introduce a strict marine fuel sulfur cap starting in 2020, rather than 2025. Under the new rules, the sulfur content of the fuel oil used by ships will be limited to 0.5% mass/mass (m/m), which is a significant reduction on the current global limit of 3.5% m/m. KBC conducted a survey of refiners across the US, Europe, the Former Soviet Union and South Africa, and found that only 15% of oil refiners claim that they currently have a plan in place to cope with the new rules.1

It would seem that shippers and refiners are taking a ‘wait-and-see’ approach to the rule changes; both holding out for the other to make the necessary investments to ensure compliance. KBC’s Chief Economist, Stephen George, explains: “While the shipping industry expects the refiners to meet their supply requirements, the refining industry is still waiting to know to what extent the shipping industry will install emission ‘scrubbers’ on board.”

This is a high-risk strategy for some oil refiners. KBC’s report suggests that just 10 – 15% of vessels are currently expected to install scrubbers (rising to 20% by 2025). The remaining vessels are likely to use low sulfur fuel oils or other clean fuels, e.g. LNG. As such, the market for high sulfur fuel oil (HSFO) is likely to be limited after 2019, and refineries in regions that currently have a surplus of heavy fuel oil can expect to face significant challenges to dispose of this product. Ultimately, this could lead to production cuts or even closures. KBC’s report concludes that refineries must decide whether to continue to produce HSFO, invest in significant upgrades in order to adapt to the specification change for bunker fuel, or cut their exposure to this market altogether.

While the IMO’s new rules may be a few years away, it is clear that refiners should act now in order to implement an appropriate strategy for the challenges that lie ahead.

1. BAROUNI, R., ‘The IMO’s 2020 marine fuel sulphur cap and challenges for the global refining industry – the time for action is now!’, KBC Advanced Technologies, (April 2017).

Neles® NDX valve controllerdelivers performance perfected

That’s how we make the big difference, the Metso Way.

The Neles NDX has been carefully designed and manufactured to make the big difference to our customers, regardless of end use industry or application. Savings are created through accurate, long-lasting and maintenance-free performance and through time saved as a result of extremely easy installation and use. The Neles NDX provides the reli-ability and robustness you’d expect from a valve controller by Metso, for all valve brands in standard applications.

Find out more about the savings, safety and reliability that each Neles NDX valve controller offers at metso.com/ndx

#TheMetsoWay

Metso_NDX_PrintAd_A4_ENG.indd 1 13.4.2016 10.06

WORLD NEWS

August 2017HYDROCARBON ENGINEERING

5

UK | Decommissioning begins at petrochemical sites

RVA Group has been contracted by SABIC to oversee the

decommissioning, demolition and dismantling of 10 redundant plants at its North Tees and Wilton sites in the UK.

The programme, which is expected to be completed in 2020, will involve the demolition of a jetty that was set to begin at the end of July and be cleared in eight weeks. Continued decommissioning support is being provided for a tank farm complex and RVA is also finalising the contractor selection process for the demolition of two aromatics plants, with a proposed mobilisation date of January 2018.

Elsewhere in Wilton, the 48 week demolition of SABIC’s Olefins 5 Furnaces and neighbouring Butadiene 2 facility is already in progress and expected to be completed by spring 2018 and the close of 2017, respectively.

RVA was first appointed by SABIC in 2011 to review all redundant assets on the two sites. Drones were deployed for selected areas to inspect the condition of the various structures, before a rigorous, scheduled decommissioning strategy was developed.

Hungary | MOL Group partners with Evonik and thyssenkrupp

MOL Group has signed licence agreements with Evonik and

thyssenkrupp that will enable it to produce propylene oxide, a key component for the production of polyether polyols.

MOL Group has entered into key contracts related to core technologies of the polyol project, which was announced in 2016 as

part of the first investment cycle of the MOL 2030 long-term strategy. The contracts concern the purchase of technology licences and process design packages for the hydrogen peroxide to propylene oxide (HPPO) technology of propylene oxide production. The licensor of the hydrogen-peroxide unit for captive use is Evonik, while

a consortium formed by Evonik and thyssenkrupp Industrial Solutions licenses the propylene oxide unit. The contracts also contain binding offers and pre-agreements regarding the later engineering and execution phases of the HPPO units by thyssenkrupp and the purchase of proprietary catalysts from Evonik.

USA | LyondellBasell to build PO/TBA plant

LyondellBasell has reached final investment decision (FID) to

build the world’s largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant in the Houston area, Texas.

The project will represent the single-largest capital investment in the company’s history, at an approximate cost of US$2.4 billion.

Once in operation, the plant is expected to produce 470 000 tpy of PO and 1 million tpy of TBA. PO is used in the manufacture of bedding, furniture, carpeting, coatings, building materials and adhesives, while the TBA will be converted to

two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE).

LyondellBasell plans to sell the PO and derivative products to both domestic and global customers, while the oxyfuels will be primarily sold into Latin America and Asia. A portion of the TBA will remain in the domestic market in the form of high purity isobutylene, which is used in tyres and lubricants.

The PO/TBA project will have a split facility design to optimise product balances and realise synergies between the LyondellBasell sites.

Canada | Honeywell wins CKPC contract

Honeywell has announced that Canada Kuwait Petrochemical

Corp. (CKPC) has chosen Honeywell UOP’s C3 OleflexTM technology to produce 550 000 tpy of polymer-grade propylene at CKPC’s proposed facility in Sturgeon County near Edmonton, Alberta. CKPC is a joint venture of Pembina Pipeline Corp. of Canada and Petrochemical Industries Co. K.S.C. of Kuwait.

Honeywell will also provide the process design package, proprietary

and non-proprietary equipment, on-site operator training, technical services for start-up and continuing operation, as well as key catalysts and adsorbents for the project.

CKPC’s proposed new facility is slated to consume 22 000 bpd of propane from Pembina Pipeline Corp.’s Redwater fractionation complex and other regional facilities, and to produce more than 1.2 billion lbs/y of polypropylene for customers throughout North America and the world.

WORLD NEWSIN BRIEF

August 2017 HYDROCARBON ENGINEERING

6

USA | Braskem contracts the Linde Group

Braskem has selected the Linde Group as the lead engineering,

procurement and construction (EPC) contractor to build its new North American polypropylene (PP) production line.

Linde, an approved contractor for UNIPOLTM Polypropylene Process Technology, offers comprehensive project development services for polyolefin industrial plants, ranging from front end engineering

design (FEED) to complete EPC execution.

Braskem has committed up to US$675 million towards the design and construction of the new PP production line, named Delta, which will be located next to Braskem’s existing production facilities in La Porte, Texas. Construction is expected to begin mid-summer 2017, with the final phase of main construction targeted for 1Q20.

usaChart Industries has announced that it has entered into a definitive agreement to acquire Hudson Products Corp., which is majority-owned by funds managed by Riverstone Holdings LLC, for US$410 million in cash. Hudson Products is a leader in heat transfer solutions with an array of brands and products used in refining, petrochemical, natural gas, power, and other industrial and commercial end-markets. Chart expects the transaction to close during 3Q17.

chinaAir Liquide Engineering & Construction has signed a contract to supply an air separation unit (ASU) to Shandong Lianmeng Chemical. The ASU will have a production capacity of 2300 tpd of oxygen and will supply oxygen and nitrogen to the chemical plant. The deal is the first between the two companies.

worldwideThe transaction combining GE’s oil and gas business with Baker Hughes’ is now complete. BHGE aims to help its customers acquire, transport and refine hydrocarbons more efficiently, productively and safely, with a smaller environmental footprint and at a lower cost per barrel.

usaBCCK Holding Co. has entered into an engineering, procurement and construction (EPC) contract with Blue Mountain Midstream LLC, for delivery of the Chisholm Trail cryogenic gas plant in Oklahoma. Construction of the plant has already begun with commissioning slated for 2Q18.

Ireland | NextDecade inks MoU with Port of Cork

NextDecade LLC has signed a Memorandum of Understanding

(MoU) with the Port of Cork Co. to advance a joint business development opportunity in Ireland for a new floating storage and regasification unit (FSRU) and associated LNG import terminal infrastructure.

The MoU commits the parties to undertake exclusive negotiations to develop the LNG import project. Under the terms, the potential development at the Port of Cork would receive LNG from NextDecade’s planned Rio Grande

LNG (RGLNG) project in South Texas, US.

NextDecade believes that the Port of Cork facility could support imports of up to 3 million tpy from RGLNG.

In December 2016, NextDecade signed a Heads of Agreement with FSRU provider Flex LNG for the joint development of a full value chain infrastructure solution utilising FSRU and dockside regasification import technology. Flex LNG will be supporting NextDecade to provide a fully integrated regasification import solution for the proposed LNG terminal at the Port of Cork.

USA | Wison wins EPFC contract

W ison Engineering Services Co. Ltd has announced that its

non-wholly owned affiliated company, Wison Engineering (China) Ltd, has been awarded an engineering, procurement, fabrication and construction (EPFC) contract for one section of a low density polyethylene (LDPE) project in Texas by Formosa Plastics Corp., USA.

This is Wison Engineering’s first contract awarded in the US market, representing a new milestone in the implementation of its internationalisation strategy.

Wison Engineering will be responsible for modularisation engineering, fabrication, transportation and on-site installation for the project.

WORLD NEWSIN BRIEF

August 2017 HYDROCARBON ENGINEERING

8

USA | Vaquero Midstream to expand plant

Vaquero Midstream has announced an agreement with its

bank group to increase its revolving line of credit from US$40 million to US$95 million. The increased bank capacity will be used to support the construction of a second 200 million ft3/d cryogenic processing plant at the existing Caymus plant site located in Pecos County of the Southern Delaware Basin.

Upon completion of Caymus II, Vaquero will have 400 million ft3/d of processing capacity in service at the site, with the capability to expand to over 1 billion ft3/d. Construction is estimated to be complete in 1Q18.

Vaquero is also constructing an interconnect to the Roadrunner Gas Transmission pipeline taking gas into Mexico. This interconnect will supply the needs of the CFE and other Mexican market demand.

chinaClariant has announced the opening of a new office for its catalysts business in Yinchuan city, capital of the Ningxia Hui autonomous region. With the new branch, Clariant becomes the first multinational catalyst provider based in northwest China. The Yinchuan office is Clariant’s fifth branch in the country. The company has two state-of-the-art catalyst production facilities in China, one in the Jinshan district of Shanghai, and the other in Panjin city of Liaoning province.

indonesiaCB&I has been awarded a contract by PT Chandra Asri Petrochemical Tbk (CAP) to supply materials for the revamp of existing cracking heaters at CAP’s naphtha cracker plant in Cilegon. The revamp will increase CAP’s ethylene production capacity from 860 000 tpy to 900 000 tpy, enabling it to meet increased market demand for petrochemical products in Indonesia.

russiaCGG GeoSoftware has announced that it has donated a full suite of its software technologies to the Petroleum Learning Centre. The donation includes training licences for each of the software solutions in its product portfolio. The Petroleum Learning Centre is a a joint educational project of Tomsk Polytechnic University in Russia and Heriot-Watt University in Scotland.

usaAudubon Engineering Solutions has signed a teaming agreement with Chevron Phillips Chemical to provide capital-engineering services for its Gulf Coast facilities. Previously, Audubon Engineering Solutions provided project execution and engineering support services to Chevron Phillips Chemical at multiple facilities, ranging from small maintenance projects to major capital projects.

USA | MHI America completes polyethylene plant

M itsubishi Heavy Industries America Inc. (MHIA) recently

completed the construction of a large scale two-train polyethylene plant in the US for ExxonMobil Chemical Co., an affiliate of ExxonMobil Corp.

The polyethylene plant, which will have a production capacity of 1.3 million tpy, is located near an existing plant operated by ExxonMobil in Mont Belvieu, Texas.

The plant is equipped to perform reaction processing, final finishing, packaging, and shipment.

MHI Group is also constructing a large scale polyethylene plant at ExxonMobil's petrochemical complex in Beaumont, Texas. This is the third polyethylene plant project that it has conducted for ExxonMobil. The first polyethylene plant was installed at ExxonMobil’s Singapore complex in 2011.

Romania | OMV Petrom starts construction of polyfuel unit

OMV Petrom has announced that it has started construction of a

new polyfuel unit at its Petrobrazi Refinery.

The new unit will use a catalytic process that will convert LPG components into gasoline and middle distillates. This first phase will involve building the foundations, which will require pouring approximately 3000 m3 of concrete and 335 t of steel.

The polyfuel unit will allow for a shift in refinery production of up to 50 000 t of LPG components, into

gasoline and middle distillates. The project consists of three main reactors, several adsorbers, columns and pumps.

Neil Anthony Morgan, OMV Petrom Executive Board Member responsible for Downstream Oil, said: “The new polyfuel unit is an ambitious project through which high-end technologies in the refining and petrochemical industry will be available in Romania. The project is going according to plan and we expect the new unit to be fully operational at the beginning of 2019.”

n Customer: World-scale propylene producer, China.

n Challenge: Ensure the success of the enterprise’s first PDH project.

n Result: Elliott Group is selected as the world’s most entrusted PDH compressor supplier.

They turned to Elliott

Elliott Group has decades of experience in high volume flow olefins compression that meets the most exacting standards. Elliott’s global sourcing capabilities provide world-scale producers with unmatched reliability, efficiency, and value over the life of their investment. Who will you turn to?

C O M P R E S S O R S n T U R B I N E S n G L O B A L S E R V I C Ewww.elliott-turbo.com

The world turns to Elliott.

for unparalleled experience in olefins compression.

n Customer: World-scale propylene producer, China.

n Challenge: Ensure the success of the enterprise’s first PDH project.

n Result: Elliott Group is selected as the world’s most entrusted PDH compressor supplier.

They turned to Elliott

Elliott Group has decades of experience in high volume flow olefins compression that meets the most exacting standards. Elliott’s global sourcing capabilities provide world-scale producers with unmatched reliability, efficiency, and value over the life of their investment. Who will you turn to?

C O M P R E S S O R S n T U R B I N E S n G L O B A L S E R V I C Ewww.elliott-turbo.com

The world turns to Elliott.

for unparalleled experience in olefins compression.

WORLD NEWS

August 2017 HYDROCARBON ENGINEERING

10

EIA | US petroleum refinery capacity on the up

The US Energy Information Administration (EIA) reports that

operable atmospheric crude distillation capacity in the US reached 18.6 million barrels per calendar day (bpcd) as of 1 January 2017, up 1.6% on the start of 2016.

The EIA’s ‘Refinery Capacity Report’ suggests that this increase in operable capacity was slightly down on last year’s increase of 2%.

The report claims that capacities of secondary units that support heavy crude oil processing and production of ultra-low sulfur diesel

and gasoline also increased, with catalytic hydrocracking (+4.5%) and deasphalting units (+6.1%) experiencing the largest capacity increases over the past year.

The refinery capacity reported for the start of 2017 includes one new unit, the 42 500 bpcd Magellan Midstream Partners LP condensate splitter in Corpus Christi, Texas. The Magellan Midstream Partners LP unit, which began operating in 2017, was operable but not running at the start of the year, so its capacity was listed as idle in the report.

API | Congressional reform of RFS needed

The American Petroleum Institute (API) has welcomed the US

Environmental Protection Agency’s (EPA) proposal to slightly lower the total biofuel volume for 2018.

However, the API warns that the move does not go far enough. It contends that the primary goals of the Renewable Fuel Standard (RFS) have been achieved by market forces and technological innovations, rather than by ethanol

mandates. As such, the API believes that the policy only has hypothetical benefits and that it has added costs to consumers.

The President and CEO of the American Fuel & Petrochemical Manufacturers (AFPM), Chet Thompson, added: “Congress must step in and repeal or significantly reform this broken programme, which has failed to deliver on its policy objectives.”

EnergyQuest | Australian LNG exports to grow

In its latest monthly LNG report for June, EnergyQuest forecasts that

Australia’s LNG exports will grow 22.6% in the current 2017 – 2018 financial year.

Australia exported a total of 51.4 million t in the 2016 – 2017 financial year. EnergyQuest expects this volume to be outperformed in the current new financial year, growing to 63 million t by 30 June 2018.

EnergyQuest CEO, Dr Graeme Bethune, said: “Over FY17, production increased from almost every

Australian LNG project and both Western Australia and Queensland boosted their State outputs to higher levels […] The exceptions were Darwin LNG (down 0.9 million t) and QCLNG (down 0.7 million t) compared to their previous 12 months performance.”

Australia’s LNG export output is set to rise in the coming months with Gorgon shipments now accelerating, the Wheatstone plant to commence LNG production soon with first exports in September this year, and Darwin’s Ichthys project due to commence production in 2018.

DIARY DATES12 - 14 September Turbomachinery & Pump SymposiaHouston, Texas, USAtps.tamu.edu

13 - 14 SeptemberNISTM 10th Annual National Aboveground Storage Tank Conference & Trade ShowGalveston, Texas, USAwww.nistm.org

13 - 15 SeptemberGPA Europe 2017 Annual ConferenceBudapest, Hungarywww.gpaeurope.com

27 - 28 SeptemberTank Storage AsiaSingaporewww.tankstorageasia.com

28 SeptemberTank Storage Conference & ExhibitionCoventry, UKwww.tankstorage.org.uk

2 - 4 October AFPM Operations & Process Technology SummitAustin, Texas, USAwww.afpm.org/conferences

31 October - 2 November 2017 Chem ShowNew York, USAwww.chemshow.com

6 - 9 November Sulphur 2017Atlanta, Georgia, USAwww.sulphurconference.com

13 - 15 November ERTC Annual MeetingAthens, Greeceertc.wraconferences.com

11 - 15 June 2018ACHEMA 2018Frankfurt, Germanywww.achema.de

August 2017 12 HYDROCARBON ENGINEERING

DUE PROCESS

Contributing Editor, Gordon Cope, examines the northwest corner of the North American continent and its great potential for gas processing.

August 201713HYDROCARBON ENGINEERING

Combined, Alaska and western Canada have tremendous gas reserves. The region is underlain by both conventional and unconventional reservoirs that have the potential to supply much

of the continent for decades.According to the Alaska Oil and Gas Conservation

Commission, the Prudhoe Bay field is capable of producing more than 6 billion ft3/d.1 There is no significant access to a conventional market, however; even if a pipeline were built to Anchorage, there is insufficient population and industry to warrant the expense. But there are now plans to monetise the 46 trillion ft3 of reserves through LNG.

Canada is another matter. Although it is at the end of a very long supply chain, operators have been able to find, drill, process and deliver 13 billion ft3/d of gas to markets in eastern Canada and the US. Although the majority of gas has been from conventional shallow fields in southern Alberta, unconventional discoveries have opened up a very competitive source of gas. The Montney shale formation in northwest Alberta and northeast British Columbia (B.C.) holds 282 trillion ft3 of gas and 12.8 billion bbls of crude. Production has risen dramatically over the last several years, and now stands at 5 billion ft3/d (more than one‑third of Canada’s total production).

What's in a gas?Raw natural gas is primarily methane, but invariably contains a wide range of both impurities and

commercially‑valuable substances. Unwanted impurities can include water, carbon dioxide (CO2), and hydrogen sulfide (H2S). Water can form hydrates and liquid slugs in pipelines, impeding flow. CO2 can form acids that cause corrosion. H2S is poisonous in even minute amounts and can form acids in conjunction with water.

Raw natural gas also contains economic side products. Heavier gases include ethane, propane and butane. Pentanes and higher molecular weight hydrocarbons are collectively referred to as natural gas liquids (NGLs).

A gas processing facility strips both impurities and economic products from methane through a variety of means. The first step in a processing plant is the removal of acid gases (CO2 and H2S). Traditionally, amine treating is used, but amines are gradually being phased out in favour of polymeric membranes. H2S is processed to recover elemental sulfur using the Claus process. Water vapour is removed using glycol dehydration or membranes.

NGLs are then recovered using a cryogenic low temperature distillation process (involving expansion through a turboexpander followed by distillation in a de‑methanising column). The NGLs are then fractioned into ethane and propane using distillation towers.

The remainder is pipeline‑ready methane. Quality standards vary between major transmission and distribution companies as well as markets, but the gas must meet several general requirements. It should normally be within a specified calorific value; a common standard is

August 2017 HYDROCARBON ENGINEERING

14

1035 ± 5% Btu/ft3. It must be sufficiently free of particulate solids to prevent erosion and corrosion, and contain less than 7 lb of water per million ft3 of gas (to prevent the formation of hydrates).

CanadaGas processing in Canada is dominated by several midstream firms that focus on gathering, processing, transportation and distribution.

TransCanadaTransCanada transports 75% of the natural gas produced in the Western Canadian Sedimentary Basin. This year, it will be spending CAN$1.3 billion to expand its NOVA gas transportation line (NGTL) system. The project includes five pipeline sections totaling 230 km and the addition of two compression units. When the work is completed in mid-2018, the NGTL system will have a capacity exceeding 11.3 billion ft3/d.

Pembina PipelinePembina Pipeline operates over 10 000 km of crude, gas and NGL pipelines, primarily in Alberta. Pembina’s 2017 business plan calls for the spending of CAN$1.7 billion to finish the construction of over CAN$3 billion in projects. Part of the CAPEX, some CAN$260 million, is directed toward the commissioning of Redwater Fractionation Site (RFS) III, the third new NGL fractionator in its giant Redwater facility. When the 55 000 bpd unit is completed in late 2017, it will make Redwater the largest fractionation facility in Canada, with a nameplate capacity of 200 000 bpd.

AltaGasAltaGas, based in Calgary, has CAN$22 billion in energy assets, including 1.6 billion ft3/d of extraction and separation facilities. It is planning to add another 100 million ft3/d of processing capacity in B.C., and two separation NGL trains with a capacity of 20 000 bpd.

EnbridgeAlthough primarily known as an oil pipeline company, Enbridge owns and operates extensive gas networks throughout North America. Its assets in Alberta and B.C. include 11 processing plants with 760 million ft3/d capacity and 2800 km of transmission pipelines.

Inter PipelineInter Pipeline has assets of CAN$22 billion, primarily in Alberta. It operates an extensive NGL processing business, including three major straddle plants, two off-gas processing plants, an off-gas liquids pipeline and a liquids fractionator. Input gas exceeds 3.1 billion ft3/d, and NGL output reached 113 000 bpd in late 2016.

Mergers and acquisitionsThe midstream sector has been one of the few profitable sections of the oil and gas industry in the last several years. Institutional investors, such as pension funds, place high value in their ability to deliver stable dividends

year after year. Devon Energy recently sold its 50% ownership of the Access Pipeline to a subsidiary of the Canada Pension Plan Investment Board for CAN$1.4 billion, the Access pipeline network services Devon’s Jackfish thermal oilfields in northeast Alberta.

Midstream companies are also seeking out economies of scale; in the face of staunch opposition from environmental groups to new-builds, acquisitions are a viable route to growth. In early May, Pembina and Veresen announced a CAN$9.7 billion transaction that will create a CAN$33 billion company. The merger amalgamates a complementary network of crude, NGL and gas lines, midstream, processing and fractionation assets throughout the Western Canada Sedimentary Basin. In terms of gas processing, Veresen is currently building 1.5 billion ft3/d (gross) network of gas processing and related compression, gathering and liquids handling network in the Montney play in B.C.. Pembina’s Redwater and Empress processing facilities are connected to Veresen’s Alberta Ethane Gathering System (AEGS).

In August 2016, Inter Pipeline bought the Canadian assets of Williams Pipeline. The Calgary-based company paid CAN$1.35 billion (a 45% discount from CAPEX costs) to purchase a 420 km gas pipeline network and two NGL plants and a fractionator facility. The two NGL plants, near Fort McMurray, remove NGLs and olefins from off-gas, a byproduct of bitumen upgrading. The fractionator, north of Edmonton, separates NGLs into propane, propylene and butane.

Both deals were dwarfed by TransCanada’s purchase of the Columbia Pipeline Group for US$10.2 billion. The acquisition gave TransCanada an extensive network of gas pipelines, processing and storage facilities throughout the rapidly-growing Marcellus and Utica gas shale plays.

In an even larger deal, pipeline majors Enbridge and Spectra united in a friendly merger to create a US$126 billion midstream company. The merger reinforces the potential for organic growth. The combined company will have US$20 billion in secured projects and an additional US$37 billion of projects under development. The risks for delays (and cancellations) are spread out over a much larger portfolio, and the added weight and breadth of the new corporation allows for a stronger hand when competing for new projects and opportunities.

MarketsExtracting valuable byproducts from natural gas is made more profitable if there are willing buyers. Operators in the oilsands, which produce 2.8 million bpd, mix NGLs with bitumen to create a less-viscous product (known as dilbit), that can be easily transported by pipeline.

NGLs may also have increased use in production. More than half of all oilsands output occurs through steam assisted gravity drainage (SAGD). Bitumen that is buried too deeply to reach via open pit mining is targeted with SAGD paired wells. Steam is injected into the reservoir in the first well; when it heats up the oil, it flows to the second well and is pumped to surface.

The government of Alberta has recently put a cap on oilsands CO2 production of 100 million t (it currently

Latest News

HONEYWELL TECHNOLOGIES SELECTED FOR FARABI PETROCHEMICALS COMPLEXHoneywell has announced that Farabi Petrochemicals Company will use Honeywell UOP technologies for a new complex in Yanbu to expand its production of biodegradable detergents. Honeywell UOP will provide catalysts and adsorbents as well as licensing, basic engineering design and other associated services for the new complex, which is expected to be completed in 2020.

SNC-LAVALIN WINS BRAHMS OIL REFINERIES CONTRACTBrahms Oil Refineries Ltd has awarded SNC-Lavalin a contract to undertake a front-end engineering design (FEED) conversion to engineering, procurement and construction (EPC) contract for a crude oil refinery in Kamsar, Guinea. The FEED will provide a budget cost estimate to obtain a final investment decision (FID) for the project in 3Q17.

ESSAR PROJECTS COMMISSIONS COKE DRUM PACKAGEEssar Projects India Ltd (EPIL) has announced the successful testing and commissioning of the Coke Drum Structure Package (CDSP) for Bharat Petroleum Corp. Ltd’s Kochi Refinery (BPCL-KR). The contract value of this package is Rs. 645 crores. The CDSP is part of BPCL-KR’s integrated refinery expansion project that will increase its operating capacity to 15.5 million tpy from 9.5 million tpy.

PACIFIC NORTHWEST LNG PROJECT CANCELLEDThe partners behind Pacific NorthWest LNG have announced that the LNG project will not be moving forward. The project partners made the decision following a total review of the LNG project amid changes in market conditions.

For further information go to: www.hydrocarbonengineering.com

Capabilities

hexagonppm.com/cadworx

© 2017 Hexagon AB and/or its subsidiaries and affiliates. AutoCAD is a registered trademark of Autodesk, Inc. BricsCAD is a registered trademark of Bricsys. All rights reserved.

CADWorx Plant Professional makes the creation of intelligent plant designs quick and easy. It has helped firms produce the high-quality deliverables their customers have come to rely on for over fifteen years.

AutoCAD® or BricsCAD® PlatformIntelligent 3D Piping DesignOn-the-fly Collision CheckingStructural SteelEquipmentDucting/Cable TraysIsogen® IsometricsP&ID Creation and LinksLinks to Stress AnalysisDesign Review

August 2017 HYDROCARBON ENGINEERING

16

stands at 70 million t). In an effort to reduce CO2 output per barrel, oilsands operators are looking at ways to reduce energy consumption in SAGD. One of the most promising technologies is to swap out the steam for solvents. If the technology proves economic, the oilsands will vastly increase demand for NGLs.

Alberta also has a thriving petrochemical sector that turns NGLs into feedstock for the manufacture of plastics. In order to stimulate further added-value products in the province, the Alberta government announced the Petrochemical Diversification Program (PDP) in early 2016. The programme will commit up to CAN$500 million in royalty credits to encourage companies to spend up to CAN$5 billion to build facilities that use methane or propane to produce polyethylene and related products. According to the government, the royalty credits will be assigned through a competitive application process and awarded on project start-up. The credits can then be traded or sold to oil and gas producers, who would then use them to reduce their royalty payments to government.

The programme has proved successful. Pembina and its partner, Petrochemical Industries Co., proposed to construct new propane dehydrogenation (PDH) and polypropylene (PP) plants in Sturgeon County, east of Edmonton. Recently, Pembina announced that it was selected as a recipient of CAN$300 million in royalty credits from the programme.2 The CAN$4.2 billion facility will use 22 000 bpd of propane when it enters service in 2021.

LNGAlthough LNG is not technically considered gas processing, its market fundamentals could have a significant impact in regards to gas development and processing in Alaska.

Asian markets have long had a thirst for LNG. Alaska would have an advantage over many other producers in regards to its location because it is relatively close to Japan. As such, transportation days are reduced and tankers can be used much more efficiently.

For several decades, various LNG plans for Alaska’s 46 trillion ft3 of stranded gas have been promoted. The latest, backed by the state’s Alaska Gasline Development Corp. (AGDC), is the most advanced. In April, AGDC filed an application with the US Federal Energy Regulatory Commission (FERC) to develop an Alaska LNG project. The AGDC, in conjunction with Alaska North Slope (ANS) producers BP, ExxonMobil and ConocoPhillips, intend to spend up to US$45 billion on a system that will include a gas processing plant at the Prudhoe Bay field, an 800 mile, 42 in. pipeline capable of carrying up to 2.55 billion ft3/d from Prudhoe Bay to a port on the Kanai Peninsula, eight compressions stations, and a liquefaction plant capable of producing up to 20 million tpy of LNG.

The partners have already spent US$500 million on preliminary investigations, and will now proceed with the technical and regulatory work involved. Draft versions of FERC’s environmental and socioeconomic resource reports are now underway. AGDC expects FERC to issue a final environmental impact statement (EIS) within 18 months. If all goes according to plan, the first shipments are expected to take place in 2023 – 2025.

In the meantime, potential customers are expressing interest. In early April, as Chinese President Xi Jinping was returning home after a summit with US President Donald Trump, he stopped in Anchorage to meet with Alaska Governor Bill Walker and AGDC President Keith Meyer. After the meeting, Meyer noted that the discussion had focused on how China and Alaska are well-positioned for LNG trading.3 State officials are also planning to meet with potential customers in South Korea and Japan, some major LNG consumers.

In Canada, over 50 million tpy of LNG exports have been approved by the National Energy Board (NEB) for almost two dozen projects situated on B.C.’s Pacific Coast, but none have reached final investment decision (FID). Petronas, which is advancing the CAN$36 billion, 12.5 million tpy Pacific NorthWest LNG plant, is closest to a FID; it was recently heartened by the federal cabinet decision to green light the project.

Each of the B.C. LNG projects has been aligned with over half a dozen proposed gas pipelines. The 463 km Pacific Trails pipeline, owned by Chevron and Apache Corp., would deliver up to 1 billion ft3/d to Kitimat, B.C. Petronas’ Pacific NorthWest plant would be serviced by the Prince Rupert Gas Transmission Project, a 900 km, 3.6 billion ft3/d line. Recently, the B.C. government issued an environmental assessment certificate to FortisBC Energy for its Eagle Mountain-Woodfibre Gas Pipeline project. The 47 km line would deliver over 200 million ft3/d to the proposed Woodfibre LNG facility, located in Squamish, B.C. Although it is unlikely that all of the pipelines would be built, those that are constructed to meet LNG demand would require extensive gas processing facilities.

ConclusionClearly, the future of the gas processing sector in Alaska depends on the development of the AGDC LNG project, which still faces many hurdles. Current market prices for LNG are in a sustained down cycle, placing pressure on greenfield projects. Raising capital for the massive private sector project will also be a challenge, as will obtaining long-term contracts to underpin financing.

In Canada, growth in the oilsands and the petrochemical sector will stimulate demand for NGLs, and thus processing. Canada also has vast unconventional production, including the massive reserves in the Montney formation in northeast B.C. and northwest Alberta; they will require extensive new gas processing facilities. Although many challenges are ahead, gas processing in Alaska and Canada faces a bright future.

References1. AOGCC Pool Statistics, Prudhoe Bay Unit, Prudhoe Oil Pool, Alaska Oil

and Gas Conservation Commission (AOGCC), (2013), available: http://doa.alaska.gov/ogc/annual/current/18_oil_pools/prudhoe%20bay%20-%20oil/prudhoe%20bay,%20prudhoe%20bay/1_oil_1.htm

2. 'Pembina Pipeline Corp. announces 2017 capital program of $1.9         billion and Alberta government royalty credit award', Pembina Pipeline Corp., (5 December 2016), available: http://www.pembina.com/media-centre/news-releases/news-details/?nid=135345

3. 'U.S. Vice President Mike Pence meets with Alaska Gasline Development Corporation', Alaska Gasline Development Corp., (2017), available: http://www.prnewswire.com/news-releases/us-vice-president-mike-pence-meets-with-alaska-gasline-development-corporation-300440076.html

Legal Notice: The information contained in this publication is believed to be accurate and reliable, but is not to be construed as implying any warranty or guarantee of performance. Sulzer Chemtech waives any liability and indemnity for effects resulting from its application.

Tower Technical Bulletin Troubleshooting distillation columns – Part 1: The basics

Background Properly designed and operated distillation columns can provide long-term, trouble-free service. However, mechanical failure, process upsets, and other factors can occur, preventing the distillation system from achieving the expected design performance.

Taking a tower off-line is time consuming and expensive; before doing so it is important to have a good idea of what is causing the problem. A systematic study of the column should be made (often with the assistance of the column equipment provider). After careful study, a tower inspection should be performed to confirm the cause of the problem and to determine and/or provide a proper solution. In emergency cases, expected replacement equipment may need to be on site prior to the column opening.

Understanding mass transfer fundamentals is critical Knowledge of the column thermodynamic and hydraulic functions is the key starting point. Any problem that develops that does not allow the vapor and liquid to contact each other in the manner for which the device was designed, or keeps the vapor and liquid from separating after contact, will adversely affect column performance. For example, the packing shown below will not provide good flow or vapor/liquid contacting efficiency because some of the packing is blocked off by fouling.

Where to startAsk yourself the following questions:

• What specifications are not being met? What could happen internally to create this issue?

• Is this a capacity problem? Has the column ever run successfully at these rates? If not, the internals may be at their capacity limit.

• Have there been any upset conditions that may have damage internals?

Working toward a solutionThe simple checks should be made first. Check the instrumentation to ensure that flows, levels, temperatures, and pressures are correct. Check to make sure that feed compositions and analyses are correct. Conduct a single gauge pressure survey and a temperature survey as possible. Perform a mass balance across the column—a closure of 3-5% is normally considered acceptable.

Once you have this information, review the information with plant engineering and operations. Consult with your equipment vendor to further investigate the problem. Decide on the feasibility of a column gamma scan. If practical, schedule a tower inspection at the first opportunity in order to personally examine the internals.

In the meantime, the problem may be temporarily alleviated by reducing rates, changing the reflux and reboiler duties, changing the feed location, and increasing or decreasing the tower pressure.

The Sulzer Applications GroupSulzer has over 150 years of in-house operating and design experience in process applications. We understand your process and your economic drivers. Sulzer has the know-how and the technology to design internals with reliable, high performance.

Sulzer Chemtech

North and South America Sulzer Chemtech USA, Inc.8505 E. North Belt Drive Humble, TX 77396, USAPhone: +1 281 604-4100 ttb.ctus@sulzer.com

Europe, Middle East and India Sulzer Chemtech Ltd. P.O. Box 658404 Winterthur, SwitzerlandPhone: +41 52 262 50 28chemtech@sulzer.com

Asia PacificSulzer Chemtech Co., Ltd. 10 Benoi Sector Singapore 629845Phone: +86 65 6515 5500ctsg@sulzer.com

Hydraulic evaluationSymptoms of hydraulic flooding include excessive or erratic pressure drop, reduced bottoms flow, reduced column temperature profile, and excessive liquid carryover. Conversely, low pressure drop is an indication of missing trays or packing.

You will need to be a subscriber to read the full edition. Please log in to www.hydrocarbonengineering.com

or alternatively, click here to subscribe.

For more information about the comprehensive Hydrocarbon Engineering subscription package, please contact us:

www.hydrocarbonengineering.com E: subscriptions@hydrocarbonengineering.com

T: +44 (0)1252 718999

AUGUST ISSUE