Refining and Petrochemical Integration Case Study

Ccile Plain

Agenda

Axens P2 Services: Your Partner for Major Projects Asia-Pacific Market Highlights Case Study: Refinery and Petrochemical Integration
Objectives and Definitions
Project Execution

Conclusions
2

P2 Consulting Services
Energy Efficiency GHG Mitigation
Commercial Excellence Cost Estimation, Financial Analysis & Risk Assessment Oil Loss Reduction Crude Opportunity Added Value Activities Linear Programming Services CO2 Credit Identification And Valorization Risk Study & Environmental Impact Assessment Feedstock & Product Market Analysis

Project stage

Site Location Evaluation

(Grassroots & running plants) Hydrographic Study Pre-feasibility Study and Marine Facility Design Feasibility Study Petroleum Terminal Study
Conceptual Engineering Study Integrated Process Solution
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P2 Scope of Work versus Cost Accuracy

100% 80% 60% 40% 20% 0% -20% -40% -60%

% Cost Estimation Accuracy

Start-up

PROJECT COST ACCURACY

time

Project Scope
PROJECT PROGRESS

Pre-feasibility
Feasibility

Conceptual Basic

Feed
EPC CONTRACTOR

Axens P2 BU

Axens PL BU

Agenda

Axens P2 Services: Your Partner for Major Projects Asia-Pacific Market Highlights Case Study: Refinery and Petrochemical Integration
Objectives and Definitions
Project Execution

Conclusions
5

Oil Products Demand Asia Pacific 2030

100% 80% 60% 19.9% 40% 20% 0% 3.7% 13.1% 15.6% 11.0% 22.2% 5.3% 15.4% 13.8% 8.2%

Market Structure 2010 vs. 2030

11.7% 10.2% 14.8% 9.9% 7.7% 17.6%

Incremental Demand 2010-2030

2010-2030 AAGR Other* 0.9% LPG 0.4% Naphtha 2.7% Motor Gasoline 2.4% Jet Kerosene 3.6% On-road diesel 2.6% Off-road diesel 1.2% Fuel Oil 0.3%

Mbdoe
3.0 2.5 2.0 1.5 1.0 0.5 0.0

2010 27.4 Mbdoe

2030 39.2 Mbdoe

2010-2030 AAGR 1.8%

Other* = Kerosene ( Jet Kerosene), Refinery Gas, Petroleum Coke, NGL, Lubricants, Bitumen, Paraffin Wax, Refinery Losses,

Axens & other sources

Petrochemical Products Demand 2004-2020

000 MT 180000

World
Ethylene Propylene

000 MT

Asia
+ 56 %
Ethylene

+ 55 %

18000

14000

140000

+ 54 %
100000

10000

Propylene

6000

+ 154 %

60000

2000

2004

2009

2014

2019

2004

2009

2014

2019

Growth in Asian ethylene demand is equal to the very high worldwide demand growth Growth in Asian propylene demand is significantly larger than global demand growth
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Agenda

Axens P2 Services: Your Partner for Major Projects Asia-Pacific Market Highlights Case Study: Refinery and Petrochemical Integration
Objectives and Definitions
Project Execution

Conclusions
8

Project: Key Figures

World scale Refining & Petrochemical Plant Configuration Study

20 bn$ Investment 3 Mt/y Naphtha Cracker

Did you know?

The project is one of the worlds most extensive integrated refining and petrochemical complexes

Meet primary C2-C4 olefins demand Heavy, sour Middle East crude input
300 000 bbl/day Crude Distillation

Key Project Objectives

Milestone I Milestone II Time

Kick-off meeting
Project shall

Project accomplishment

capture demand growth for high value-added petrochemical specialties be flexible and fit into existing refining system meet future refined product demand and specifications

create opportunities for the development of a major industrial hub including new maritime infrastructures
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Refining and Petrochemical Integration

% of demand 100 80 60 40 20 0 C2 = C3 = C4 = 8 Units 5 Units 6 Units 3 Units Refinery 15 Units Production Plant Steam Cracker

5 Units

Total of Process Units

42

C5 =

Axens P2 ensured integration of facility.

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Value-Addition with Petrochemical Derivatives

Petrochemical production is a complex business which differs from refining

Options ranked based on a preliminary cost estimate and financial analysis Development of different derivatives plant options with high-profile licensor partners in close collaboration with the client Optimization of refinery process configuration and steam cracker integration Initial decision: Feed a stream cracker with naphtha from a refinery
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Integration and Synergy Between Sites

Light

Medium

Heavy

Type of crude input to be studied was predefined by customer

Identify intermediates that can be exchanged between sites. Other investments?

2012-2025 Motor Fuels Demand & Future product specifications (Euro IV)

Export of excess to region

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Main targets for refinery

Integrating a refinery with a steam naphtha cracker and petrochemical facilities offers the best ROI for satisfaction of the C2-C4 demand But how can the value and benefits of a new refinery be optimized?

Heavier crude processed

Maximize conversion of residue to transportation fuels

Best value for cracker feed, satisfy fast-growing gasoline demand and unprecedented crude-processing flexibility
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Multi-criteria site localization study

Three potential sites Identified and ranked by multi criteria considerations:

Social impact Local economics Environmental constraints

+ Three phase harbor implementation study

Geographic localization

Harbor Infrastructure

Harbor to site transfer Infrastructure

Most suitable location Shipping Channels

Jetties Storage facilities

Rail Road Waterways

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Axens P2 Services: Your Partner for Major Projects Asia-Pacific Market Highlights Case Study: Refinery and Petrochemical Integration
Objectives and Definitions
Project Execution

Conclusions
16

Project Technical Phases: Duration: 1 year

Axens know-how and co-operation with third party licensors Consulting with petrochemical licensors Class IV cost estimation (+/- 30%)

Phase 1a
Conversion strategy screening

Phase 2
Petrochemical Intermediates & Value added products

Phase 3
Process specifications (Pre-basic design)

Phase 1b
Steam Cracker and Refinery integration Axens in-house tools and data

Class V cost estimation (+/- 50%)

Optimal communication environment ensured by dispatch of client task force to Axens head office
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Phase 1a: Conversion Strategy Screening

Asia-Pacific Conversion Capacity
Mbdoe
2

1.5

Coking Cat. Cracking

Hyd. Cracking
0.5

Heavy Oil / Res. Fuel

No single correct strategy. Conversion type is closely related to the countrys future demand.

All options studied. Best two options were: Coker / MHC / DCC versus ARDS / RFCC Distillates / Olefins versus Gasoline / Olefins
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Phase 1b: Cracker and Refinery Integration

CAPEX Advantages: optimized yields, shared utility production OPEX Advantages: energy efficiency by utility consumption

Optimization with LP Model

Refining capacity
Domestic demand Export market

Bottom-of-the-barrel
Coker or Visbreaker Maxi Diesel scheme

Petchem plant
Ethylene production volume constraints

Feedstock
LPG, Naphtha, Distillates, HCK Unconverted Oil
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Phase 2: Value-added Products

Typical Naphtha Steam Cracker Products

Many different value added products can be produced (Hygiene, Automobile, Pharma, ) from precursors Configuration study based on clients petchem strategy, petrochemical licensor know-how, local economics, trading and future market

Decision has major impact on future plant economics (ROI).

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Phase 3: Process Specifications

General Project

Overall Design Basis Environment and safety Class IV Cost Estimates Financial and risk analysis Overall Plot Plan

Process

Process Flow Diagrams Material & Utility balances Sized Equipment List Catalyst and Chemical Consumption Effluents, Waste and Environment Flare Loading

Off-sites

Tankage Buildings

Utilities
Fuel Gas Systems Power and Steam Generation Water Systems Plant Air

Infrastructure

Liquid Bulk handling Dry Bulk Export Container handling Jetty and Haul Road Gas Feeding Pipe

500 Documents

Ready for FEED!

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Conclusions

Highly complex and complete detailed feasibility study

performed within tight schedule.

Project is currently in FEED phase Successful collaborative project for Axens and Client
(win win situation)

Axens is the ideal partner for Refining and Integrated

studies because of its immediate access to a wealth of proprietary information.
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