Challenges Facing the Oil Refining and Petrochemical ... · PDF fileBaku, December 2015...
Transcript of Challenges Facing the Oil Refining and Petrochemical ... · PDF fileBaku, December 2015...
Baku, December 2015
Challenges Facing the Oil Refining and Petrochemical
Sectors in Russia under the Economic Crisis
V.M. Kapustin,
OAO VNIPIneft General Director; Gubkin Russian State Oil @ Gas University, Head of the Oil
Refining Technology Department; RF Honoured Scientist
OAO VNIPIneft
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STATUS OF OIL REFINING AND PETROCHEMICAL SECTORS
IN RUSSIA IN 2015
MT
2015, 10
months
2014, 10
months Difference
Refining capacity 234,3 239,7 -5,40
Products:
Motor gasoline 32,4 31,5 0,90
Jet fuel 8,3 9,3 -1,00
Diesel 63,1 64,0 -0,90
Fuel Oil 59,2 64,3 -5,10
Average load ratio, % 94,0 95,0 -1,00
Oil conversion level, % 74,1 72,4 1,70
MT
2015, 9
months
2014, 9
months Difference
Products:
olefins 2,7 2,4 0,30
polyethylene 1,2 1,1 0,10
polypropylene 1,15 0,90 0,25
Petrochemicals in RF
Petrochemicals in RF
MAJOR CHALLENGES IMPEDING THE GROWTH OF REFINING AND
PETROCHECMICAL SECTORS IN RUSSIA
Financial sanctions imposed by the USA
and EC
High import dependence in the industry
Increase in equipment cost due to the
weakening rouble
Ambiguity in tax policy
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Refining output and conversion level over 2005-2015
Refining output over 2005-2015
Oil conversion level over 2005-2015
Refining output over 2005-2015
Oil conversion level over 2005-2015
2015
forec.
2015
forec.
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Refining capacity dynamics over 2005-2015 in Russia
Refining capacity dynamics over 2005-2015 MTA
Process 2005 2010 2015 % as compared
to 2005
Crude distillation 265.9 276.5 304.5 114.5
Catalytic reforming for hydrorefining 26.1 26.1 29.1 111.5
Diesel hydrotreating 70.5 70.6 79.2 112.3
Catcracked gasoline hydrotreating - - 5.0 -
Isomerization 1.9 6.2 9.1 478.9
Catalytic Cracking 17.8 21.2 24.6 138.2
Alkylation 0.6 1.3 2.1 345.0
Hydrocracking 6.9 9.5 15.8 229.0
Coking 5.3 5.9 8.0 150.9
Vacuum residue visbreaking 12.7 22.7 24.3 191.3
Low oil prices lead to higher refinery
margins
Implementation of import substitution
measures
Optimization of existing plants
NEW APPROACHES TO REFINING SECTOR DEVELOPMENT
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OPTIMIZATION OF EXISTING PLANTS
Measures aimed at
optimization of
existing plants
Direction 1
Measures aimed at improving economic efficiency
(profitability) of operating capacities
Direction 2
Assessment of operating capacity state
Direction 3
Resolution of ongoing issues
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IMPORT SUBSTITUTION IS A NEW CHALLENGE FOR THE INDUSTRY
• Working teams for the following areas of activities were
set up with direct involvement of the Ministry of Energy
and the Ministry of Industry and Trade of the Russian
Federation:
- Import substitution in process development
- Import substitution of catalysts for refining and petrochemical
processes
- Import substitution of additives to engine fuels and lubricants
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CDU/VDU PROCESS
Produces vacuum gas oils with high end-boiling points
up to 580оС
up to 600оС
Low metal content
High diesel fuel evaporation rate (up to 99% of feed
potential)
Primary benefits of the process:
CDU/VDU
OAO TAIF-NK
ОАО Gazprom neftekhim Salavat
OJSC TANECO
ООО LUKOIL-Volgogradneftepererabotka
VDU
ООО PO Kirishinefteorgsintez
ОАО Rosneft-Tuapse Refinery
ООО LUKOIL-Permnefteorgsintez
Implementation:
Developers: ОАО VNIPIneft, OAO VNIINP
All the major projects were implemented by Russian designers and researches
Large-size equipment such as columns, furnaces, tanks were supplied by Russian equipment
manufacturers.
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LICENSORS OF CATALYSTS AND PROCESSES
IMPROVING THE OIL PRODUCT QUALITY
Process Licensors
International Russian
Hydrotreating Axens,Exxon Mobil,
Haldor Topsoe,
CBI Lummus
VNII NP jointly with VNIPIneft
Institute of Catalysis SB RAS
(catalysts)
ZAO Katakhim (catalysts)
Alkylation Axens, Stratco, UOP
CBI Lummus
Institute of Petrochemical Synthesis
RAS (pilot trials)
RAS Group
Isomerization Axens, UOP, CDTECH NPP Neftekhim
Reforming Axens, UOP NPP Neftekhim (catalysts)
Institute of Hydrocarbons
Processing SB RAS (catalysts)
ООО NPF OLKAT(catalysts)
Most projects are based on international processes
NEW REFINING PROCESSES IMPLEMENTED
AT RUSSIAN REFINERIES IN 2010-2015
Vacuum distillation unit yielding VGO with end-boiling point 560-
580°С (VNIPIneft, VNII NP)
Low-temperature isomerization(Isomalk-2 and UOP)
Hydrogen fluoride alkylation (UOP)
Catcracked gasoline hydrotreating (Axens)
Summer diesel hydrodewaxing
Secondary distillates hydrogenation (VNII NP)
Hydrocracking and production of Group III lube oils (Chevron)
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LICENSORS OF DEEP CONVERSION
PROCESSES
Process Licensors International Russian
Catalytic
Cracking
VGO Axens, CBI Lummus, KBR, Exxon
Mobil, Shell, Stone & Webster, UOP
Institute of Petrochemical
Synthesis RAS, OAO VNII NP,
OAO VNIPIneft
oil residues Axens, KBR, UOP
Russian processes are not available
Hydrocracking
VGO Сhevron Lummus, Axens, UOP OAO VNII NP, OAO VNIPIneft
oil residues Axens, Сhevron Lummus Russian processes are not available
Fluid catalytic cracking UOP, ENI – pilot trials Institute of Petrochemical
Synthesis RAS, OAO VNIPIneft -
pilot trials
VCC KBR Russian processes are not available
Coking
delayed CBI Lummus,Foster Wheeler,
Conoco Philips
GUP Institute of Oil Refining and Petrochemistry, UGNTU
continuous Exxon Mobil Russian processes are not available
Production of Group III lube oils Сhevron Lummus, Exxon Mobil Russian processes are not available
Most projects are based on international processes.
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OJSC TANECO HEAVY COKER GAS OIL
HYDROTREATING
Capacity: 850 kTA
Licensors: Axens
OAO VNIPIneft’s scope of work:
development of Detail Documentation
HYDROCONVERSION OF HEAVY RESIDUES ON NANO-SCALE CATALYSTS
Parameters
Hydro-
conversion by Institute
of Petr.Synth.
Process conditions:
- pressure, MPa 7.0-8.0
- temperature, °С 440-450
Catalyst quantity, % wt 0.05
Information by Institute of Petrochemical Synthesis
RAS
Developers: Institute of Petrochemical Synthesis RAS, Institute of Problems of
Chemical Physics RAS, INKO-TEK Tatneft
Implementation:
• OAO Tatneft - 50 KTA
(Basic Design is completed, Authority
and Detail documentation is under development))
It is planned to implement:
• ОАО Gazprom (Astrakhan) – 500 KTA
• ОАО Gazprom neft (Moscow) – 2.0 MTA 14
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Construction of Catalyst Production Complex in OAO
GAZPROMNEFT-OMSK REFINERY
Capacity:15 kTA of catalytic cracking catalysts 4 kTA of diesel fuel hydrotreatment catalysts 2 kTA of hydrocracking catalysts 2 kTA recovery/reactivation of hydrogenation processes catalysts
Licensors: Institute of Hydrocarbons Processing SB RAS, Institute of Catalysis SB RAS
OAO VNIPIneft’s scope of work: Development of Basic engineering solutions and issue of investment feasibility study
Project objectives: Creation of state-of-the-art industrial complex for production of catalytic cracking and hydrogenation catalysts within the framework of the import substitution programme to meet the catalyst demand of GAZPROM Group refineries and other RF Refineries
Project status: marketing research is completed, development of Basic engineering solutions is coming to a close, investment feasibility study is under preparation for issue
Time of putting into operation: 2018
DIESEL FUEL HYDROTREATMENT
ОАО ANGARSK PETROCHEMICAL COMPANY
Capacity – 4 MTA with producing the Euro 5 diesel fuel
Licensor and Basic Design developer - Exxon Mobil
OAO VNIPIneft’s scope of work: Basic Design acceptance, Detail
Engineering, and Designer Supervision
Project status:
– updating Authoring Engineering and Detail Engineering
Documentation to bring it in conformity with RF applicable codes
and regulations
– procurement is 98% completed
– construction and installation work is ~ 70% completed
Time of putting into operation – 2017 .
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Creation of TANECO Complex
• The implementation of Refining and
Petrochemical Complex in Nizhnekamsk was
initiated by the Republic of Tatarstan
Government in 2005
• ОАО VNIPIneft developed in full scope
Authority Engineering Documentation for the
Complex with a capacity of 7 MTA and
ensured obtaining of State Expert Review
favourable conclusion
• ОАО VNIPIneft came up with a proposal and
engineering substantiation for the construction
on the allocated area of a refining complex
having a crude capacity of 14 MTA
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ОАО VNIPIneft developed Detail Engineering
for a number of process units and Off-Site
Facilities.
• Capacity: 7 MTA
• General Design Contractor: OAO VNIPIneft
• OAO VNIPIneft’s scope of work: Development of Basic Design;
Authority and Detail Engineering; equipment procurement; designer’s
supervision
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OJSC TANECO CDU
• Time of putting into operation:
2011
OJSC TANECO HYDROCRACKING COMPLEX WITH HYDRODEWAXING
Capacity: 2.9 MTA
Licensors: hydrocracking, hydrodewaxing - Chevron Lummus,
hydrogen production – Haldor Topsoe
General Design Contractor: -OAO VNIPIneft
OAO VNIPIneft’s scope of work: Development of Authority and Detail Engineering;
equipment procurement; designer supervision
Status of the Hydrocracking Complex Project: commissioned in 2014
Oil Plant was commissioned in December 2014
VGO
Residual fraction
For lube oils of Groups II and III
Diesel
Kerosene
Gasoline
Liquified gases
Hydrodewaxing Unit
Heavy Distillates
Hydrocracking
Unit.
Hydrogen Plant
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Project: Creation of a new petrochemical complex:
Composition:
• Ethyleneplant -1 MTA
• High DensityPolyethyelene Plant - 450 KTA
• Linear lowdensity polyethyelen plant - 415 KTA
• PolypropylenePlant - 500 KTA
• ButadienePlant - 85 KTA
• MEG Plant - 300 KTA
Project status:
• The bid is underway to select General Design Contractor for the Complex
Year of putting into operation: 2020
WEST-SIBERIAN CLUSTER OOO ZAPSIBNEFTEKHIM
(Tobolsk)
General Design Contractor – ОАО VNIPIneft
Composition:
Ethylene plant, 1500 KTA (Licensor - Linde)
Polyethylene plant, 1500 KTA (Licensor - INEOS)
Polypropylene plant, 500 KTA (Licensor - LyondellBasell)
Project status:
Detail Documentation for the Complex is under development (Ethylene
plant - Linde; Polyethylene plant - Technip; Polypropylene plant -
UHDE; Off-Site facilities - OAO NIPIgazpererabotka)
WEST-SIBERIAN CLUSTER OOO NOVY URENGOY GCC
General Design Contractor – ОАО VNIPIgazdobycha
Composition:
Ethylene Plant, 420 KTA (Licensor – Linde))
Low Density Polyethyelene Plant - 400 KTA (Licensor – Basell))
OAO VNIPIneft’s scope of work:
Updating Detail Documentation for the Ethylene and Polyethylene
Plants and Storages as related to civil engineering design
Participation in Designer’s Site Supervision
Project status:
Construction and erection work for the process units is in progress:
the Complex’s completion degree ~ 60%
The year of putting into operation - 2017
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OAO VNIPIneft’s scope of services:
Procurement
Construction management
Pre-project work
85 years on the market of engineering services
Largest projects implemented in recent years:
Design
OAO VNIPIneft: LEADING RUSSIAN ENGINEERING COMPANY FOR OIL
REFINING, GAS PROCESSING AND PETROCHEMICAL INDUSTRY
Refining:
CDU, catalytic cracking, isomerisation, hydrotreating units (OJSC TANECO, OAO TAIF-NK, OOO
PO Kirishinefteorgsintez,
ОАО Gaspromneft-Moscow Refinery)
VGO Hydrotreating complex (ZAO Ryazan Oil Refinery Company)
VGO Hydrocracking Complex (OJSC TANECO, ООО Slavneft-Yaroslav-nefteorgsintez, ООО
LUKOIL-Permnefteorgsintez, OOO PO Kirishinefteorgsintez)
Petrochemicals:
Petrochemical complexes of OOO Sibur in Tobolsk and Perm
Petrochemical complex of OAO Gazprom in Novy Urengoy
Petrochemical complex of OAO LUKOIL in Budenovsk
Petrochemical complex of OAO TAIF in Nizhnekamsk
CONCLUSIONS
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Under the current economic situation the government’s top priority should be import
substitution, improving competitiveness of Russian manufacturers and quality of their
products.
Enhancement of technological specialization and promotion of investments into science-
intensive industries are crucial aspects in development of domestic technologies.
Use of domestic technologies, equipment and services of Russian engineering companies
during modernization of the industry will allow to weaken import dependence and resolve
the issue of import substitution in the industry
OAO VNIPIneft as Russia’s leading engineering company is ready to provide the entire
package of engineering services required in the market to revamp operating and construct
new refining and petrochemical facilities.
Thank you for your attention!