Profit Pivot Points in a Refinery-Petrochemical Integrated ...

Profit Pivot Points in a Refinery-Petrochemical Integrated ComplexLUMMUS TECHNOLOGY

1

Agenda

Fundamental Challenges

Basics

Typical Refinery and Typical Petrochemicals Unit

Integrated Refinery / Petrochemical Unit

Profit Pivot Points

Hydrocracker

Mixed Feed Steam Cracker

Co-product Selectivity

Case Study

McDermott: Profit Pivot Points

2

Challenges Facing Refiners

Reduced growth in fuel

demand

Energy efficiency improved

Extended fuel mileage

Enhanced Electric Vehicles

Environmental Headwinds

Total Transport

Oil, Biofuels, Gas, Other

CAGR

2.8%

1.1%


3

Drivers of Rapid

Petrochemicals Growth

From 2016 to 2040, 40%

chemicals sector growth

Quality of l ife improvement

Rising prosperity

Development of M iddle Class

Petrochemical growth

exceeds GDP growth

Emerging Markets

unprecedented GrowthAfrica / Middle East

Asia Pacific

Latin America

Europe

North America

Global Middle Class Growth

Source: The Brookings Institute

4

2030

5.3 Billion People2015

3 Billion People

0.4

0.3

0.7

0.3

1.4 3.4

0.5

0.70.3

0.3


0

100

200

300

400

1990 2000 2010 2020 2030 2040 2050

Ind

ex =

10

0

Relative Olefins and Aromatics

Demand vs GDP

Relative Olefins and Aromatics

GDP

Synergies of Refinery /

Petrochemical Integration

Recent Trend: Greater integration no just co-location

Position petrochemicals plants near:

Low-cost feedstock

Lower transportation costs for feedstocks

Fuel Sources

Existing Infrastructure

Downstream Markets: PE / PP / PET

Petrochemicals provide high value outlet for refiners


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PetrochemicalsRefinery

Complimentary Units

H2

Naphtha

Py-Oil

Traditional Refinery

Atm

Tower

Crude

Vac

Tower

DHT

LPG

NHTCCR

Naphtha

Jet, Diesel

Resid

VGO

HT

Delayed

Coker

FCC

VGO

Hydro

CrackPropylene

Gasoline

Cycle Oil

IsomGasoline

H2

Gasoline

Oil Conversion90% Fuels

10% Chemicals Coke

Jet, DieselBottoms

Aromatics


6

Traditional Petrochemicals

Gas

Feed

Steam

Cracker

Hydrogen

Fuel Gas

Ethylene

Ethane

Gas Crackers

PGO/PFO

Pygas

LPG

Fuel Gas

Ethylene

Liquid

Feed

Steam

Cracker

Hydrogen

Fuel Gas

Ethylene

Propylene

Butadiene

BTX

PGO/PFO

Naphtha

AGO

VGO

Mixed C4s

Pygas

HVGO

Liquid Crackers

LPG


7

Feed Flexible

Petrochemicals Complex

Ultimate flexibility

Recent trends:

Return to multiple feed crackers

Larger capacity 1500 – 2000 KTA

Mixed

Feed

Steam

Cracker

Unit

Hydrogen

Fuel Gas

Ethylene

Propylene

Butadiene

BTX

PGO/PFO

Naphtha

AGO

VGO

Mixed C4s

Pygas

HVGO*

Ethane

Mixed Feed Crackers

LPG


8

*Hydrocracked

Vacuum Gas

Oil

Integrated Refinery and

Petrochemicals Unit

Atm

TowerCrude

LPG

Jet

Diesel

Resid

ISO

CRACKER

Naphtha

Mixed

Feed

Steam

Cracker

Unit

Naphtha

Ethylene

Propylene

Mixed C4s

HVGO

C5+ Pygas

Hydrogen

Vac

Tower

LC-Fining /

LC-Slurry

VGO

Do

wn

stre

am

Pe

tro

ch

em

ica

ls U

nit

s

Diesel BTX

Hydro

processing


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ULSFO

Py-Oil

Profit Pivot Points for Integrated

Complex

• Optimize cracker feeds

• Balance Hydrogen consumption to optimize production of chemicals

• HVGO excellent Lubes or Cracker feedstock

Hydroprocessing

• Feed Flexibility

• Cracking Severity determined by Propylene to Ethylene (P/E) Ratio


• Monetize valuable co-products such as Butadiene, Paraxylene, BTX

• Olefins Conversion Technology maximizes C2-C3-C4 Product flexibility

Co-Product Selectivity


10

Hydroprocessing:

Chevron Lummus Global (CLG)

Chevron Lummus Global (CLG)

Joint Venture

Chevron: Major Oil Company with world class Hydroprocessing Technologies

McDermott: A premier EPC company offering world-class Lummus

Technologies

100+ Hydroprocessing Plants designed worldwide

Active R&D Programs, Pilot Plant in Richmond, CA and Pasadena, TX

Multiple Hydroprocessing Solutions:

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Gas Oil and

VGO

Hydrocracking

Bottom of the

Barrel

Hydrocracking

Ebulated

Bed

Fixed

Bed

Slurry


Hydroprocessing

Profit Pivot Point

Miracle of Hydrogen Addition

Effectively prepares feed to

Mixed Feed Steam Cracker in terms of Feed Flexibility,Conversion, and Yield


12

Jet

Diesel

ISO

CRACKER

LC-Fining /

LC-Slurry

VGO

Hydroprocessing

Resid

H2

H2

LPG

Naphtha

Diesel

HVGO

ULSFO

Upgrading the bottom of the

barrel

Catalyst and reactor

configurations determine

range of conversion


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Outlet for Py-Oil upgrading

from Steam Cracker

Steam Cracking:

Lummus Technology

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Lummus Technology, part of McDermott Technology

Leading technology licensor for refining, petrochemical, gas processing, and coal gasification technologies

120+ Licensed Technologies

3000+ Patents, Applications, Trademarks

Industry Leading Ethylene technology



CompressionRecovery &

PurificationLiquid

Heaters

Process Features:

SRT ® Pyrolysis Furnace Module

High Yield

Long Run Length

Optimized CAPEX / OPEX

Low Pressure Design vs conventional plants

Multi Component Refrigeration

Reduced Compressor Casings and Equipment Count

Gasoline

and

Heavies

Removal

Gas

Heaters


15


Profit Pivot Points


16

0

50

100

Wt.

%

Feed Flexibility

Typical Pyrolysis Yields(major chemicals)

Ethylene Propylene Butadiene BTX

Cracking Severity

Cracking Severity High Low

P/E Ratio 0.45 0.65

Energy / kg Ethylene Base + 16%

Feed Rate Base + 14%

Ethylene Production Base Base

Propylene Production Base + 46%

*P/E Ratio defined as

Propylene / Ethylene Ratio

Co-Product Profit Pivot Point

Steam

Cracker

UnitSat’d C4s

Hydrogen

Fuel Gas

Ethylene

Propylene

Mixed C4s

C5-C8 Pygas Pygas

HT

Total

Hydro

Sat’d C5-C8

NaphthaSat’d C4s

PP Unit

PE UnitPolyethylene

Polypropylene


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C4 Train (Optimized)

Steam

Cracker

Unit

Butadiene

Extraction

MTBE / HP IB

Unit

1,3-Butadiene

Butene-1

i-Butane to Alky

MTBE

Butene-1

Raff-1

Raff-2

Raff-3Ethylene Propylene

Mixed

C4s

n-Butane

Raff-3 to Alky


18

C5s

Olefins

Conversion

Technology

IsobutyleneMethanol


Pygas (Optimized)

Steam

Cracker

Unit

Stage 1 Pygas

Hydrotreating

C5s to Cracker

C5+

Pygas

Stage 2 Pygas

Hydrotreating

Pygas

BTX

Paraxylene

Benzene

Paraxylene

Propylene Aromatics

Styrene

C6-C8


19

to OCT

Ethylene

Cumene

Co-Product

Block

Mixed

Feed

Steam

Cracker

Unit

Profit Pivot Points

Putting it all together

Mc

De

rmo

tt: Pro

fit P

ivo

t Po

ints

20

Atm

Tower

ArabLight

Crude

LPG

Jet

Diesel

Resid

ISO

CRACKER

Naphtha

Ethylene

Propylene

MixedC4s

HVGO

C5+Pygas

Hydrogen

Vac

Tower

LC-Fining /

LC-Slurry

VGO

Diesel

PGO

Hydro

processing

Benzene

Xylenes

Naphtha

Butene-1

Butadiene

Py-Oil

ULSFO

Case Study - Refinery /

Petrochemicals Integration

Mc

De

rmo

tt: Pro

fit P

ivo

t Po

ints

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Case 1 2 3 4 5Reside Upgrading No LC-FINING LC-FINING LC-FINING LC-SLURRYFuels Production No No Yes Yes YesFuel Oil Type 3% HSFO 1% LSFO 1% LSFO 1% LSFO 0.1% ULSFOAdditional Processing Dual Cracker

Crude (Arab Light), BPD 195,000 162,000 227,000 400,000 246,515

Ethylene, KTA 2,000 2,000 2,000 4,000 2,000

Propylene, KTA 1,480 1,493 1,469 2,805 1,489

Butadiene, KTA 357 357 347 774 326

Euro VI Diesel, BPD 0 0 74,500 94,265 106,000

Fuel Oil, BPD 54,000 25,000 20,000 36,935 8,500

Anode Coke, KTA

% Required H2 from Cracker 39% 26% 18% 22% 16%

Chemical Yield on Crude, % 58% 70% 49% 57% 45%

% IRR 14.6% 22.4% 24.4% 33.0% 25.0%Notes

1. All cases includes Hydrocracker + Olefins Conversion Technology2. All cases produce MTBE, Butene-1, Benzene, Xylenes3. 3% HSFO priced at $21/Bbl less than crude

Crude to Chemicals

A Disruptive Technology


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Source: Saudi Aramco PresentationAt Baker Hughes (GE) 2018

Annual Meeting, Mr. Abdulaziz Al-Judaimi

Conclusion

Focus on integration of refinery and petrochemicals units

Rapid petrochemicals demand provides opportunities for refiners to shift to chemicals

Profit Pivot Points will allow producers to pivot to meet changing market demands:

Hydrocracker


Co-Product Management


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Source: EIA and Global Data

Technology solutions exist to

upgrade refined products to

valuable petrochemicals

Profit Pivot Points in a Refinery-Petrochemical Integrated ...

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