Profit Pivot Points in in a Crude to Chemicals Integrated ...
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Profit Pivot Points in in a Crude to Chemicals Integrated Complex Brian S. Muldoon Vice President - Petrochemicals Lummus Technology – McDermott
Transcript of Profit Pivot Points in in a Crude to Chemicals Integrated ...
Profit Pivot Points in in a Crude to Chemicals Integrated Complex
Brian S. Muldoon
Vice President - Petrochemicals
Lummus Technology – McDermott
Challenges Facing Refiners
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Reduced growth in fuel
demand
►Extended fuel mileage
►Enhanced Electric
Vehicles
►Environmental
Headwinds► Total Transport: Oil, Biofuels, Gas, Other
CAGR
2.8%
1.1%
GDP vs Total Transport
Drivers of Rapid Petrochemicals Growth
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From 2016 to 2040, 40% chemicals sector growth
Quality of life improvement
Rising prosperity
Development of Middle Class
Petrochemical growth exceeds GDP growth
Emerging Markets unprecedented Growth
Africa / Middle East
Asia Pacific
Latin America
Europe
North America
Global Middle Class Growth
Source: The Brookings Institute
20305.3 Billion People
20153 Billion People
0.4
0.3
0.7
0.3
1.4 3.4
0.5
0.70.3
0.3
McDermott: Profit Pivot Points
0
100
200
300
400
1990 2000 2010 2020 2030 2040 2050
Ind
ex =
100
Relative Olefins and Aromatics
Demand vs GDP
Relative
Olefins and
Aromatics
GDP
Synergies of Refinery / Petrochemical Integration
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► Recent Trend: Greater integration not 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
Complimentary Units
Refinery
H2
Naphtha
Py-Oil
Petrochemicals
Traditional Refinery
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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 Conversion
90% Fuels
10% Chemicals Coke
Jet, Diesel
Bottoms
Aromatics
Traditional Petrochemicals
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Gas Feed
Steam
Cracker
Hydrogen
Fuel Gas
Ethylene
Ethane
Gas Crackers
PGO/PFO
Pygas
LPG
Liquid
Feed
Steam
Cracker
Hydrogen
Fuel Gas
Ethylene
Propylene
Butadiene
BTX
PGO/PFO
Naphtha
AGO
VGO
Mixed C4s
Pygas
HVGO
Liquid Crackers
LPG
Feed Flexible Petrochemicals Complex
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Mixed Feed Steam Crackers
provide ultimate flexibility
Multiple Feeds and Products
Larger capacity: 1.5 to 2.0
Million Tons per Annum
Hydrogen
Fuel Gas
Ethylene
Propylene
Butadiene
BTX
PGO/PFO
Naphtha
AGO
VGO
Mixed C4s
Pygas
HVGO*
Ethane
Mixed Feed Crackers
LPG
*Hydrocracked
Vacuum Gas Oil
Mixed
Feed
Steam
Cracker
Unit
McDermott Technology – One Stop Shop
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❑ Joint Venture – Chevron
and McDermott
❑ 100+ Hydroprocessing Plants
designed worldwide
❑ Active R&D Programs, Pilot
Plant in Richmond, CA and
Pasadena, TX
Chevron Lummus Global (CLG)
❑ Leading technology licensor
• Refining
• Petrochemical
• Gas Processing
• Coal Gasification Technologies
❑ 120+ Licensed Technologies
❑ 3000+ Patents, Applications, Trademarks
❑ Industry Leading Ethylene technology
Lummus Technology
Integrated Refinery and Petrochemicals Unit
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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
VGO
Do
wn
str
eam
Pe
tro
ch
em
icals
Un
its
Diesel BTX
Hydro
processing
ULSFO
Py-OilLC-Fining / LC-
Slurry
Profit Pivot Points for an Integrated Complex
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• 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
Mixed Feed Steam Cracker
• Monetize valuable co-products such as Butadiene, Paraxylene, BTX
• Olefins Conversion Technology maximizes C2-C3-C4 Product flexibility
Co-Product Selectivity
Hydroprocessing Pivot Point
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Miracle of Hydrogen Addition
Effectively prepares feed to
Mixed Feed Steam Cracker
in terms of Feed Flexibility,
Conversion, and Yield
Jet
Diesel
ISO
CRACKER
LC-Fining / LC-
Slurry
VGO
Hydroprocessing
Resid
H2
H2
LPG
Naphtha
Diesel
HVGO
ULSFO
Upgrading the Bottom of the Barrel
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Catalyst and reactor configurations determine range of conversion
Outlet for Py-Oil
upgrading from Steam
Cracker
Mixed Feed Steam Cracker
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Liquid
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
HeatersCompression
Recovery &
Purification
Mixed Feed Steam Cracker Profit Pivot Points
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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
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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
Co-Product Profit Pivot Point C4 Train (Optimized)
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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-3
EthylenePropylene
Mixed
C4s
n-Butane
Raff-3 to Alky
C5s
Olefins Conversion
Technology
IsobutyleneMethanol
Profit Pivot Points: Putting it all together
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Co-
Product
Block
Mixed
Feed
Steam
Cracker
Unit
Atm
Tower
Arab
Light
Crude
LPG
Jet
Diesel
Resid
ISO
CRACKER
Naphtha
Ethylene
Propylene
Mixed
C4s
HVGO
C5+
Pygas
Hydrogen
Vac
Tower
VGO
Diesel
PGO
Hydro
processing
Naphtha
Py-Oil
ULSFOLC-Fining / LC-
Slurry
Benzene
Xylenes
Butene-1
Butadiene
Case Study - Refinery / Petrochemicals Integration
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Case 1 2 3 4 5
Reside Upgrading No LC-FINING LC-FINING LC-FINING LC-SLURRY
Fuels Production No No Yes Yes Yes
Fuel Oil Type 3% HSFO 1% LSFO 1% LSFO 1% LSFO 0.1% ULSFO
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
Chemical Yield on Crude, % 58% 70% 49% 57% 45%
% IRR Base +7.8% +9.8% +18.4% +10.4%Notes
1. All cases includes Hydrocracker + Olefins Conversion Technology
2. All cases produce MTBE, Butene-1, Benzene, Xylenes
3. 3% HSFO priced at $21/Bbl less than crude
Crude to Chemicals: A Disruptive Technology
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Source: Saudi Aramco Presentation
At Baker Hughes (GE) 2018
Annual Meeting, Mr. Abdulaziz Al-Judaimi
Conclusion
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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
Mixed Feed Steam Cracker
Co-Product Management
Source: EIA and Global Data
Technology solutions exist
to upgrade refined
products to valuable
petrochemicals
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Contact Information:
Brian S Muldoon
Vice President
Lummus Technology LLC
1515 Broad Street
Bloomfield, NJ, 07003 USA
Copyright 2019, Lummus Technology LLC All Rights Reserved
