CONVENTIONAL WHITE OILS? NOT ANYMORE! UNLOCKING COMPETITIVE ADVANTAGE Carina Brauch-Fischer Steve Diana Shell Process Oils Technical Manager Shell GTL Process Oils Business Development Manager Copyright of Shell International Petroleum Company Ltd BEFORE WE GET STARTED We respect your time – we will not run more than 45 minutes. Questions are encouraged during this webinar. Use the “Question” link in the bottom of your screen. We’ll answer all your questions! If we can’t answer them all live, we will have a direct follow-up with you. An interactive webinar – you’ll be able to participate in several live polling questions. Click your answers onscreen. A recorded version of this presentation will be made available to all webinar registrants within the next few days. Copyright of Shell International Petroleum Company Ltd MEET OUR SPEAKERS Steve Diana Business Development Manager for GTL Process Oils for the EMEA region 35 years experience in lubricants/process oils in several major Oil Companies Graduate Mechanical Engineer Copyright of Shell International Petroleum Company Ltd MEET OUR SPEAKERS Carina Brauch-Fischer Technical manager Process Oils 12 years experience in chemical industry mainly in Process Oils applications Chemical Engineer Copyright of Shell International Petroleum Company Ltd AGENDA The energy challenge What is GTL (Gas to Liquids) technology Shell Risella X & Shell Ondina X Benefits of using GTL process oils Copyright of Shell International Petroleum Company Ltd AGENDA The energy challenge What is GTL (Gas to Liquids) technology Shell Risella X & Shell Ondina X Benefits of using GTL process oils Copyright of Shell International Petroleum Company Ltd THE FUTURE OF ENERGY – OUTLOOK FOR 2050 Rising energy demand, supply pressure and climate change 9 BILLION people, 75% living in cities (2 BILLION more than today) 2 BILLION vehicles (TRIPLE the current number) Source: Shell analysis, February 2014 Copyright of Shell International Petroleum Company Ltd Many MILLIONS of people will rise out of energy poverty. Higher standards of living mean rising energy use Energy demand could DOUBLE from 2000 levels, while CO2 emissions must be half today’s levels to avoid serious climate change Energy efficiency measures mean HALF of the energy needs to produce each dollar of wealth 3 TIMES more energy from renewable sources GLOBAL SUPPLY MARKET OUTLOOK Gradual shift in production capacity Evolution of global base oil capacity by quality from Group I to Group II/III base oils Group I’s share of global base oil capacity will decline to around 41% by 2020, from 51% currently, while Group II and III base oils will rise to 32% and 18%, respectively Asia Pacific is set to see the largest capacity increases, followed by North America and the Middle East Source: PFC Energy. Data shown reflects the status as of 1 January 2014 Copyright of Shell International Petroleum Company Ltd Evolution of global base oil capacity by region AGENDA The energy challenge What is GTL (Gas to Liquids) technology Shell Risella X & Shell Ondina X Benefits of using GTL process oils Copyright of Shell International Petroleum Company Ltd FROM NATURAL GAS TO LIQUID ENERGY How Shell creates products from natural gas that would otherwise be produced from oil. Offshore Separation Pipes carry gas to a processing facility Water and other byproducts are separated from the gas Gasification The remaining pure natural gas flows to the gasification unit that mixes it with oxygen and converts it into a combination of hydrogen and carbon monoxide known as synthesis gas or syngas Reactor and catalyst Syngas enters a reactor where a catalyst that speeds up the chemical reaction converts the syngas into long-chained waxy hydrocarbons and water Cracker/ distiller The cracker uses hydrogen to cut the long-chained hydrocarbon molecules into smaller molecules of different sizes which are then distilled into various liquid products, each with different boiling points Storage/ export Resulting liquids: Naphtha Kerosene Normal paraffins Gasoil Base oils The GTL process converts natural gas to clean fuels and high-quality products Copyright of Shell International Petroleum Company Ltd AGENDA The energy challenge What is GTL (Gas to Liquids) technology Shell Risella X & Shell Ondina X Benefits of using GTL process oils Copyright of Shell International Petroleum Company Ltd GTL BASED PRODUCT PORTFOLIO Shell Risella X products – technical white oils FDA § 178.3620 (b): meet and exceed FDA standard requirements Shell Ondina X products – medicinal (food-grade) white oils FDA § 178.3620 (a): meet FDA standard requirements BfR XXXVI approved Shell Ondina X 432 (kV100 = 9 mm²/s) – EU 10/2011 Copyright of Shell International Petroleum Company Ltd VALUABLE PERFORMANCE ADVANTAGES EXTRA PURITY* EXCELLENT PERFORMANCE IN SELECTED APPLICATIONS Are colourless Low volatility Are almost odourless Low pour point Contain virtually no sulphur, High flash point nitrogen or aromatics Have an extremely narrow hydrocarbon distribution range Copyright of Shell International Petroleum Company Ltd High viscosity index Outstanding UV and thermal colour stability *COMPARED WITH CONVENTIONAL MINERAL OILS AGENDA The energy challenge What is GTL (Gas to Liquids) technology Shell Risella X & Shell Ondina X Benefits of using GTL process oils Copyright of Shell International Petroleum Company Ltd MOLECULAR STRUCTURE Shell Risella X molecular structure representation Convention Group I oil molecular structure representation Copyright of Shell International Petroleum Company Ltd PURITY THAT MEETS MORE STRINGENT LEGISLATION – THE TOTAL PAH LEVELS ARE COMPARABLE WITH MEDICAL WHITE OILS Shell Risella X oils have very low polycyclic aromatic hydrocarbon (PAH) levels that are comparable with medical white oils. Their purity is in line with the requirements for formulations that meet more stringent legislation, which makes them appropriate for applications requiring higher levels of purity. Shell technical white oil classification (FDA § 178.3620 (b)) Shell Risella X oils meet and exceed FDA standard requirements Source: Shell Copyright of Shell International Petroleum Company Ltd If value <0.001mg/kg counted as 0.001 for summary. The oils used have comparable viscosities at the test temperature. CARBON CHAIN LENGTH DISTRIBUTION COMPARED WITH GROUP II PROCESS OILS Shell Risella X 430 contains longer carbon chains when compared to conventional oils at same viscosity Comparative data generated from testing one sample of product. These characteristics are typical of current production. Although future production will conform to Shell’s specification, variations in these characteristics may occur. Copyright of Shell International Petroleum Company Ltd OXIDATION STABILITY TEST, 20 H AT 160°C Technical/medicinal white oils Shell Risella X Fresh 20 h Saybolt colour original After 20 h at 160°C Group III – A 29 0.8 (ASTM) Group III – B 30 Shell Ondina 919 Shell Ondina 941 Colour (Saybolt) original After 20 h at 160°C 24 Shell Risella X 415 +30 30 30 24 Shell Risella X 420 +30 29 30 20 Shell Risella X 430 +28 28 Copyright of Shell International Petroleum Company Ltd Comparative data generated from testing one sample of product. These characteristics are typical of current production. Although future production will confirm to Shell’s specification, variations in these characteristics may occur. REACH COMPLIANT NEXT GENERATION PROCESS OILS – SHELL RISELLA X & SHELL ONDINA X Shell Risella X oils REACH Reg. No: 01-0000020163-82-0001 CAS-Nr. 848301-69-9 FDA § 178.3620 (b): meet and exceed FDA standard requirements NSF registration: H1 – HX1 Shell Ondina X oils REACH Reg. No: 01-0000020163-82-0001 CAS-Nr. 1262661-88-0 FDA § 178.3620 (a): meet FDA standard requirements BfR XXXVI approved H1 – HX1 – 3H Shell Ondina X 432 INCI Coding: “Paraffinum Liquidum” (Standard coding of crude based pharmaceutical/medicinal white oils) REACH Reg. No 01-2119487078-27 CAS-Nr. 8042-47-5 Fulfils the EU Directive10/2011(Plastic Directive) Fulfils the COLIPA (COSMETIC Europe) recommendation No. 14. Copyright of Shell International Petroleum Company Ltd CUSTOMER TESTIMONIALS “Exciting enhancement in process efficiency and product quality” “Fantastic fogging characteristics 60% better“ “Products have been positively received by customers” “Brings innovation” “We were keen to explore whether its low viscosity would be able to unlock performance advantages.” Copyright of Shell International Petroleum Company Ltd GLOBAL AVAILABILITY Europe Located in Hamburg The Americas Jebel Ali Located in Houston Qatar Asia-Pacific Located in Hong Kong 4 regional hubs feed more than 20 Shell GTL-enabled blending plants Each hub will keep significant buffer stocks to cope with supply and demand volatility Copyright of Shell International Petroleum Company Ltd Q&A Submit questions in the lower right corner of your screen. Copyright of Shell International Petroleum Company Ltd CONTACT US Steve Diana: steve.diana@shell.com Carina Brauch-Fischer: C.Brauch-Fischer@shell.com www.shell.com/processoils Copyright of Shell International Petroleum Company Ltd