LC-MAX - Engerati.com Steegstra...confidential property of chevron lummus global to be reproduced,...

CONFIDENTIAL PROPERTY OF CHEVRON LUMMUS GLOBAL

TO BE REPRODUCED, AND USED, ONLY IN ACCORDANCE WITH WRITTEN PERMISSION OF CHEVRON LUMMUS GLOBAL

A Chevron and Lummus Technologies Joint Venture

Jan Steegstra

European Fuels Conference Paris March15, 2012

LC-MAX Upgrading Residual Oil Products for the

Maximum Production of Diesel



Chevron’s refining network can process over 600,000 barrels of heavy crude and residuum per day n  In the United States, our El Segundo Refinery,

integrated with our nearby heavy oil production, continues to upgrade its heavy oil processing capacity and flexibility.

n  In South Korea, Chevron is a 50 percent partner in the 840,000 barrel-per-day GS Caltex Yeosu Refinery complex that is currently expanding its heavy oil capacity.

n And our 350,000 barrel-per-day Pascagoula, Mississippi, refinery is one of the world’s most advanced heavy oil processing facilities.

2 A Chevron and Lummus Technologies Joint Venture



Chevron’s Heavy Oil Production in California

n San Joaquin Valley

n Headquarters: Bakersfield, California

n Manages oil and gas production operations in 8 area fields, with a focus on heavy oil.

n  Largest producer in the state of California.

n  Leaders in the application of new technology to enhance recovery operations, particularly around the use of steam.

n Home to Chevron’s global Heavy Oil Center of Excellence.




Types of Crude Oil

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Arab XL Arab M Maya Boscan

8% 19%

31%

49% 27%

29%

30%

33%

26%

23%

19%

13%

37% 27%

19%

5%

LPG

Naphtha

K + D

VGO

VR




Global Heavy Oil Resources

China Mexico

Colombia

UK

Iran

Indonesia

Brazil Angola

Argentina

USA Lower 48

Venezuela

Trinidad India

Canada

1 Billion Barrels in Place

Alaska

Ecuador Peru

Madagascar

Nigeria Oman Saudi Arabia

Australia

Russia

Kuwait Egypt Jordan

E. Europe Italy

Netherlands

Turkey

10 Billion 100 Billion > 1 Trillion

Oil-in-Place

© 2009 Chevron Corporation 5

Oil Production

Source: Chevron

55% 15%

30%

9%

91%

Light + Medium

Heavy

Extra Heavy + Bitumen

Light + Medium

Heavy + Extra Heavy + Bitumen




Future Downstream Challenges n Available crude oils are

becoming heavier with higher contaminants

n Diesel demand growing n Environmental concerns

make product specifications more difficult

n Very heavy crudes favor upgraders close to fields

n Bio-renewables, F-T wax (from GTL plants) need upgrading




CLG Downstream Technology Hydroprocessing for the Future

n Hydrotreating cleans up contaminants

n Hydrocracking converts heavy oils to high quality jet and diesel

n Chevron hydroprocessing developed 50 years ago to handle SJV crudes – heavy and high in nitrogen

n  LC-FINING hydrocracks vacuum resid




8 A Chevron and Lummus Technology Joint Venture

What is LC-FINING? n  An Ebullated Bed Resid Hydrocracking

Process Designed to Process Heavy, High Metals, and/or High Solids Feeds l  Atmospheric and/or Vacuum Residues l  Bitumen From Oil Sands l  Deasphalted Oil

n  Ebullated (Expanded) Bed Reactor is Key

Process Feature l  Isothermal Reactor Operation l  No Pressure Drop Build-Up l  Catalyst Can Be Added and Withdrawn

On-Stream l  Greatly Extends Unit Run Length Versus

Fixed Bed Hydroprocessing

n  Process Features High Distillate Yields and High Heteroatom and Metals Removal



LC-FINING Commercial Unit Summary

Unit BP

USA Syncrude Canada

Slovnaft Slovakia

RAM Italy

Shell 1 and 2 Canada

Neste Oil Finland

Shell 3 Canada

Northwest Canada

GS Caltex Korea

Feed Type Various VR

Atm/Vac Bitumen Urals VR Urals /Mid

East VR Vac.

Bitumen Urals VR Vac. Bitumen

Athabasca/Cold Lake

VR Mid East

VR

Capacity, BPSD 75,000 50,000 23,000 25,000 79,000 40,000 47,000 29,000 60,000

No. of Trains 3 1 1 1 2 1 1 1 2

Resid Conv. High Medium Medium Medium High Medium High High High

Process Goal

Max CCR Reduction

Max CCR Reduction

Stab LSFO

Stab LSFO SCO

Max Diesel Yield

SCO SCO Stab LSFO

LC-FINING Bottoms Utilization

Feed to Coker

Feed to Coker

Stab LSFO

Stable LSFO

Mod Sulfur Heavy SCO

LSFO

Mod Sulfur Heavy SCO

Gasif. Feed

Stable LSFO

10 Modern Plants (13 Trains) in Operation or Under Construction



GSCaltex LC-FINING Unit




Residue Hydrocracking Challenges

n Conversion restricted by the nature of feed

n Sediment formation rises rapidly at higher conversions; conversion often limited by back-end fouling

n  Full reactor potential (capital utilization) often restricted by sediment specification on UCO

n Unconverted oil from residue hydrocracking will not meet future IMO bunker fuel oil specifications

n Hydrogen is wasted in hydrogenation of asphaltenes in UCO

11



LC-MAX Block Flow Diagram


Make-up H2

HP/HT Separator

Atm Fract

Vac Fract

Atmospheric Distillates

Vacuum Distillates

Vacuum Residue

Resid Feed

DAO

Pitch

H2 Rich Treat Gas

70-80% lift

First LC-FINING Reaction

Stage

Second LC-FINING Reaction

Stage

Gas Cooling Purification & Compression

Solvent Deasphalter



LC-MAX Process Features

n  Permits conversion limits to be extended to 85 wt%, even for very difficult residuum

n  Fully integrated multi-stage process

n  Whole VR is hydrocracked in a first reaction stage

n  Unconverted oil is de-asphalted to remove heavy asphaltenes l  hydrogen not wasted in asphaltenes hydrogenation and cracking;

cleaner operation

n  DAO is hydrocracked in a dedicated reaction stage l much higher reaction rate constant à smaller reactor




LC-MAX Process Features cont’d n  Increases crude processing flexibility – enables opportunity

crudes to be processed

n  First stage conversion is limited to 48 to 60% to limit sediment formation

l  Permits operation at relatively high temperature and high space velocity (reduced reactor size)

l  Permits conversion to be achieved in a single reactor (reduced capital)

n  Second stage conversion is maintained between 80 and 95% l  Thanks to negligible asphaltene content of DAO second

stage can be run hot ~ 438°C (820°F) (reduced reactor size)

l  Low asphaltenes content results in negligible sediment formation (cleaner operation, much less fouling)

14

A Chevron and Lummus Technology Joint Venture



Comparison of Reactor Operating Conditions Stand-alone LC-FINING vs LC-MAX


Stand-alone LC-FINING

LC-MAX

1st Stage 2nd Stage

Flow Rate Base Base 0.4 Base

Reactor Temp °C Base +10 +28

Reactor Volume Base 0.45 Base 0.35 Base

Chemical H2 Cons Base 0.7 Base 0.4 Base

Catalyst Addition Rate Base 0.75 Base 0.13 Base



LC-MAX Features

n Reactor volume for high conversion <= conventional LC-FINING unit

n Catalyst addition rate equal to or less than that consumed in units producing low sulfur fuel oil

n Downstream equipment fouling is much reduced




Disposition of Asphalt

n Coker

n Gasifier

n Pelletized

n Blended to make Fuel Oil

n Burned hot as fuel with minimal cutterstock

17



Case Study

n Base refinery has no residue upgradation, only Visbreaking

n Case 1: VR is sent to a Delayed Coking Unit

n Case 2: VR is sent to a LC-FINING unit

n Case 3: VR is sent to a LC-MAX unit

18



Case Study: Base Refinery

n Base refinery is processing 200,000 BPD of Arab Light/ Arab Medium (50/50 vol) crude blend and consists of: l FCC: 22,800 BPD

l Hydrocracking: 25,800 BPD

l Distillate HDT: 63,000 BPD

l Hydrogen Plant: 76 MMSCFD

l 26,400 BPD Visbreaking Unit to be replaced by Primary Upgrading Unit

n Other units: 14,500 BPD reformer; 11,400 BPD naphtha HT; 4,400 BPD alkylation; 310 TPD sulfur

19



Overall Yield of Products (Volume)

20

Product Yield on Crude, Vol %

Base Refinery

Delayed Coking

LC-FINING LC-MAX

LPG 3.8 5.0 4.7 5.3

Naphtha 9.2 14.5 12.6 13.7

Gasoline 13.3 12.5 12.4 12.7

Jet 15.0 15.0 15.0 15.0

Diesel 35.9 52.2 49.0 56.5

C3+ Distillate Yield, Vol % 77 99 94 103

0.5% S Fuel Oil

1.5% S Fuel Oil 10.9


Asphalt 5.0 3.0

Fuel Grade Coke 5.6 (FOE) Volume Gain,% on Crude 1.98 -0.8 4.66 6.30



Overall Yield of Products (Weight)

Product Yield on Crude, Wt %

Base Refinery

Delayed Coking LC-FINING LC-MAX

LPG 2.4 3.2 3.0 3.3

Naphtha 7.1 11.3 9.9 10.8

Gasoline 11.3 10.8 10.7 11.0

Jet 13.5 13.6 13.6 13.7

Diesel 34.3 49.7 46.9 53.8

C3+ Distillate Yield, Wt% 69 89 84 93 1.5% S Fuel Oil 12.3


Asphalt 6.0 3.8

Fuel Grade Coke 7.4

21



Summary of Incremental Capacities

Capacity Delayed Coking LC-FINING LC-MAX

Delayed Coking, BPD 37,600 - -

LC-FINING, BPD - 38,300 -

LC-MAX, BPD - - 36,400

Hydrocracking, BPD 13,900 9,500 26,000

Distillate HT, BPD 20,400 16,600 23,000

Hydrogen Plant, MMSCFD 34 73 103

Sulfur Recovery, TPD 121 212 237

22



Upgrading Economics

Delayed Coking LC-FINING LC-MAX

TIC, MM $ 1,047 1,115 1,443 NPV, MM $ 1,265 1,590 2,269 IRR, % 29.1 31.1 32.3 MD Yield wt% 63 61 79

29.1

31.1

32.3

28.0

29.0

30.0

31.0

32.0

33.0

0

500

1,000

1,500

2,000

2,500

IRR

, %

TIC

MM

$,

NPV

MM

$

23

Economics are incremental to Base Refinery, Debt/Equity=0/100, 30% tax rate, 4 years of construction, straight-line depreciation over 15 years of project economic life, and 15% discount rate for NPV calculations



LC-MAX Process Summary

n  Process concept has been proven and is ready for commercialization

n  Maximizes residue conversion to ~85 wt % n  Increases flexibility to handle more difficult feeds

n  Reduces dependency of conversion on type of feed processed

n  Rejects heavy asphaltenes from process n  Reduces reactor volumes, catalyst and hydrogen consumption

n  Has very attractive return on investment

n  Process can be applied to revamp and grassroots scenarios

24

LC-MAX - Engerati.com Steegstra...confidential property of chevron lummus global to be reproduced,...

Documents

Transcript of LC-MAX - Engerati.com Steegstra...confidential property of chevron lummus global to be reproduced,...