Successful ThruPlus Delayed Coker Start-up in an Environmentally Sensitive Area

Vincent Leung - Sr. Process Engineer, ConocoPhillips Tim Old - Technology Licensing Director, ConocoPhillips Jack Follick - Engineering Project Development Manager, Tesoro

Presentation Outline
Performing today. Preparing for tomorrow.

Overview Project Details Environmental and Other Improvements Project Highlights Summary Questions

Presentation Outline
Performing today. Preparing for tomorrow.

Overview Project Details Environmental and Other Improvements Project Highlights Summary Questions

Tesoro is an Independent Refining/Marketing Company

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No upstream assets
Kenai, Alaska 72,000 bpd Key products: Jet & Gasoline Martinez, California 166,000 bpd Key products: CARB Gasoline & CARB Diesel Wilmington, California 100,000 bpd Key products: CARB Gasoline & CARB Diesel Kapolei, Hawaii 94,000 bpd Key products: Jet& Gasoline

Headquartered in San Antonio, Texas Seven Refineries 660,000 bpd total crude capacity Retail network of over 850 sites 5,500 Employees Traded on NYSE: symbol TSO
Anacortes, Washington 115,000 bpd Key products: Gasoline & Diesel Salt Lake City, Utah 58,000 bpd Key products: Gasoline & Diesel Mandan, North Dakota 58,000 bpd Key products: Gasoline & Diesel

Calgary Office Auburn Office Denver Office Long Beach Office Corporate Office

Singapore Office

Tesoro Golden Eagle Refinery Martinez, CA

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Located on 900 hectares (2,200 acres) site about 30 miles east of San Francisco, CA Located in Contra Costa County, CA which has a strict Industrial Safety Ordinance Largest Tesoro Corporation refinery, started operation in 1913 Crude capacity = 166,000 barrels per day California/Alaska/Non-US crudes Conversion units = FCC, Hydrocracker, Alkylation unit, and previously Fluid Coker now Delayed Coker

Environmental Awareness in California

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Refinery located in San Francisco Bay area Large population of almost 7 million Over past two decades, California has led the way on stricter air quality regulations Environmental regulations generally ahead of the rest of the U.S. and much of Europe e.g. has had tighter gasoline and diesel specs Informed and active public participation in air quality and health and safety matters

Environmental Stewardship
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Environmental Stewardship
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Refinery located in highly environmentally conscious area Environmental stewardship is one of Tesoros top priorities Tesoro wanted to significantly reduce air emissions Tesoro determined that switching to a Delayed Coker was the most appropriate solution

Presentation Outline
Performing today. Preparing for tomorrow.

Overview Project Details Environmental and Other Improvements Project Highlights Summary Questions

Coker Modification Project

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Project Aims

Significantly reduce air emissions Extend duration between major turnarounds Reduce fuel gas production to provide flexibility for future energy conservation projects Incorporate recent advances in Delayed Coker technology and lessons learned throughout the industry to provide a very safe unit

Coker Modification Project

Performing today. Preparing for tomorrow.

Project Overview

Modify Fluid Coker to Delayed Coker ConocoPhillips ThruPlus Delayed Coker license signed December 2005 Feed rate of 50,000 barrels per day of vacuum residue Maximum coke production rate of 3,500 short ton per day(1) wet basis Fluid Coker shut down March 2008 ThruPlus Delayed Coker start-up April 2008 Conducted successful Acceptance Test August 2008

Fast-track project to meet regulatory deadline

(1)

Equivalent to 3,175 metric tons per day

Coker Modification Project

Performing today. Preparing for tomorrow.

ConocoPhillips Delivered Unique Expertise

Licensor and owner/operator of cokers Operates 16 units and 42 external licenses Responded to extremely tight time constraint imposed by regulatory deadline Assigned A team to Tesoro project as for all projects Lead Process and Mechanical Engineer each:

Had 30+ years experience Had concentrated on Delayed Coker (DC) for 10+ years Had Extensive experience in DC operations and maintenance Could lead the design and answered arising questions quickly Had access to ConocoPhillips expertise network

Presentation Outline
Performing today. Preparing for tomorrow.

Overview Project Details Environmental and Other Improvements Project Highlights Summary Questions

Coker Modification Project

Performing today. Preparing for tomorrow.

Environmental Improvements

No release of particulates during upsets or start-up Large reductions in NOx, SOx, and greenhouse gases

With the new DC, cleaner RFG or NG can be burnt to provide process heat rather than burning high sulfur coke/ gas

Safety Improvement

Switch from anhydrous ammonia used in SNCR system on Fluid Coker CO Boiler to aqueous ammonia used in SCR on Delayed Coker heaters

Coker Modification Project

Performing today. Preparing for tomorrow.

Environmental Impact Minimization VOCs

Closed Blowdown System (CBS)

Condenses and recovers steam and hydrocarbon vapors from off-line coke drums Minimizes air, water, and noise pollution Minimizes coke drum relief impact on the flare (Tesoro agreed to no routine flaring)
Q uench Tow er C o n d e n s e rs N oncondensed V a p o rs

Q uench W a te r S p ra y

C o k e D ru m O v e rh e a d B lo w d o w n C o k e D ru m B a c k w a rm E fflu e n t B lo w d o w n Q uench Tow er HP S te a m

S e ttlin g D ru m L ig h t S lo p O il H e a v y S lo p O il to Q uench S p ra y C ondensed B lo w d o w n W a te r

Coker Modification Project

Performing today. Preparing for tomorrow.

Environmental Impact Minimization: NOx, SOx, and CO2

NOx & SOx: Eliminated flare emissions during drum quench and backwarming

COP has worked in conjunction with EPA to significantly reduce NOx and SOx emissions COP licensor and owner/operator of cokers

NOx: Reduced heater stack emissions

Low NOx burners Selective Catalytic Reduction

SOx: Reduced heater stack emissions

Operation at low excess air and air pre-heater systems for maximum efficiency Burning natural gas or clean refinery fuel gas rather than high sulfur gas/coke

CO2: Reduced by:

Eliminating burning of coke to generate process heat Including an air pre-heater on each of Delayed Coker Heaters

CO and PM: Some reduction compared to Fluid Coker

Coker Modification Project

Performing today. Preparing for tomorrow.

Emissions Reductions

NOX: 93.3% SO2: 99.7% NH3: 98.6% GHG: 70%

Coker Modification Project

Performing today. Preparing for tomorrow.

Environmental Impact Minimization: PM10

Dust emissions are minimized through efficient pit-pad design

Time coke spends on pad achieves better coke dewatering/moisture control (8-10%wt)
Typically prevents top layer of coke becoming drying enough to form dust Water sprays available to add water as required to prevent dry out Avoids excessive water on coke draining from trucks leaving coke dust on roads Avoids coke handling system equipment reliability problems

Lower coke water content than alternative Coke Crusher/Pumped Coke-Water Slurry/Solids Separation System

Coker Modification Project

Performing today. Preparing for tomorrow.

Environmental Impact Minimization: PM10 cont.

High pit-pad perimeter wall (1.5 meters above maximum normal coke pile height) reduces wind erosion of retained coke Overhead cranes with large buckets not front end loaders to minimize coke size degradation Water spray dust control available on pit-pad, crusher inlet, belt conveyer transfer points, and load-out facilities Enclosed coke transfer system (conveyer belts and associated drop points) Trucks are covered Truck wheels are washed when leaving load-out station

Coker Modification Project

Performing today. Preparing for tomorrow.

Safety Advantages of COP Coke Handling System

Structure sloped wall

Greater barrier protection against drum drain events Provides excellent energy dissipation for blowouts and coke falls Stabilizes coke drum structure Crane operator moving coke from safe location Operator can cut coke for all drums without needing to move any coke gives time for crane repairs while operator is out of harms way

Pit-pad

Coker Modification Project

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Capex Advantages of COP Coke Handling System

Lower than alternative Coke Crusher/Pumped Coke-Water Slurry/Solids

Separation system

Sloped wall/pit-pad design can reduce the required switch deck

elevation versus metal chutes by more than 3 meters (10 ft) results in CAPEX saving of USD 500,000 - $1,000,000 per drum

Coker Modification Project

Performing today. Preparing for tomorrow.

Reliability Advantages of COP Coke Handling System

Very robust and simple equipment in simple systems Pit-pad provides adequate surge

Failure of any particular piece of equipment and consequent repair time does not result in process unit operation being affected by coke handling system Very high stream factor

Nature of pit-pad crane system allows incorporation of daily

maintenance schedule into operations

Other Advantages of COP Coke Handling System

All of the circulating water used to quench and cut coke is fully

re-used except for moisture content of coke export

Presentation Outline
Performing today. Preparing for tomorrow.

Overview Project Details Environmental and Other Improvements Project Highlights Summary Questions

Coker Modification Project

Performing today. Preparing for tomorrow.

Very Quick And Smooth Start-up

Thorough operator training

Tesoro personnel visited COPs Borger Refinery to observe coker operations and talk directly to Borger operators Tesoro conducted their own operator training, with consultation from COPs Coke Technology group COP standard design requires safety interlocks to prevent release of hydrocarbons to the atmosphere COP recommends additional interlocks to prevent mistakes that, while not unsafe, will result in operational upsets COPs practice is to assist licensee in testing all interlocks on new units Interlocks are tested to prove they will allow proper operation and prevent improper operation Stepping through the interlock system has also proved to be valuable operator training as it gives hands-on practice

Tested all the interlocks before start-up

Ongoing post start-up support

Coker Modification Project

Performing today. Preparing for tomorrow.

Other Highlights

Extended duration between major turnarounds

Increased stream factor

Reduced maintenance costs

Improved safety Reduced fuel gas production to provide flexibility for

future energy conservation projects

Coker Modification Project

Performing today. Preparing for tomorrow.

On-Stream Factor

On-stream factor affected by

Operating duration between major turnarounds Coke handling system Furnace design Coke drum life Flash zone design Learning from experienced designers, equipment suppliers, and operations personnel

Operation of 50,000 barrels per day Delayed Coker can be worth millions of dollars per day

Coker Modification Project

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High Efficiency, Low Fouling Rate Furnace Design

Good double fired furnace Minimize fouling

Low peak to average flux High velocity Short residence time

On-stream spalling capability Pigging capability Proper instrumentation

Coker Modification Project

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High Efficiency, Low Fouling Rate Furnace Design

Radiant tube support design Correct metallurgy

Return bend design

Good design minimizes downtime, Gets more throughput

Coker Modification Project

Performing today. Preparing for tomorrow.

Coke Drum Design

Achieve long drum life

Design for 7,000 drum cycles Expect 9,000+

Consider drum fatigue

Stress due to drum cycle Circumferential weld Skirt attachment

Achieve bulge resistance Minimize maintenance cost

Presentation Outline
Performing today. Preparing for tomorrow.

Overview Project Details Environmental and Other Improvements Project Highlights Summary Questions

Coker Modification Project

Performing today. Preparing for tomorrow.

Project Accomplishments

Modified Fluid Coker to a modern Delayed Coker Unit Significantly reduced air emissions Improved overall environmental conditions Reduced fuel gas production and provided flexibility for future energy conservation projects Improved safety and reduced emissions by eliminating the Fluid Coker Atmospheric Blowdown Tower

Coker Modification Project

Performing today. Preparing for tomorrow.

Looking for an example of a new Delayed Coker operating in an environmentally sensitive area? Then look no further than the ConocoPhillips Licensed ThruPlus Delayed Coker at Tesoros Martinez, California US refinery

Presentation Outline
Performing today. Preparing for tomorrow.

Overview Project Details Environmental and Other Improvements Project Highlights Summary Questions