CAPTURING VALUE THROUGH
FCC-PT/FCC UNIT INTEGRATION
Kevin Carlson
Todd Foshee
Global Application Manager for FCC Licensing Technology
Naphtha & VGO
Manager
Cautionary note
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes
used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and
subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries”
and “Shell companies” as used in this presentation refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell
has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as
“associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of
all third-party interest.
This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and
businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future
expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to
differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to
market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms
and phrases such as “aim”, “ambition’, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’,
‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially
from those expressed in the forward-looking statements included in this [report], including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s
products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks
associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing
countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial
market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements
in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed
previous dividend payments. All forward-looking statements contained in this [report] are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.
Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December
31, 2018 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by
the reader. Each forward-looking statement speaks only as of the date of this presentation, 19 September 2019. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to
publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied
or inferred from the forward-looking statements contained in this presentation.
We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.
U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
2
Speakers
Kevin Carlson
Todd Foshee
Global Application
FCC Licensing
Manager for Naphtha &
Technology Manager
VGO
Shell Catalysts &
Shell Catalysts &
Technologies
Technologies
3
FCC-PT–FCC integration
Isomerisation
Reformer
NHT
CDU
Gasoline
DHT
HCU
Alkylation
FCC-PT
FCC
Distillates
VDU
Coker
SDA
Resid
F.O and
asphalt
4
FCC-PT–FCC integration
Isomerisation
Reformer
NHT
CDU
Gasoline
DHT
HCU
Alkylation
FCC-PT
FCC
Distillates
VDU
Coker
SDA
Resid
F.O and
asphalt
5
FCC-PT–FCC integration
CDU
NHT
Isomerisation
Improved refinery profitability
Reformer
DHT
Longer unit cycle lives
HCU
Reduced operating costs
Alkylation
Greater reliability
FCC-PT
FCC
VDU
Coker
SDA
Resid
Consideration of the constraints and
objectives of downstream units is critical
6
Outline
■ About us
■ The continued need for
performance gains
■ The importance of FCC-PT/FCC
integration
■ Latest-generation FCC-PT
catalyst: CENTERA GTTM
■ FCC technology portfolio
■ Key takeaways
7
Our history
Strong individually. Stronger together.
■ Three respected brands, each with
■ As one, we’re able to better serve our
value-adding solutions, technologies, and
customers and create new opportunities for
services.
an evolving industry.
8
Our future
Strong individually. Stronger together.
Our Purpose: We exist to enable our industry to provide more and
cleaner energy solutions for today and for the future.
9
Shell’s experience as an owner/licensor/technology provider
Ghent, Belgium
Michigan City, USA
Sales and technical
service office
Shell Technology Centre
Amsterdam, the Netherlands
Manufacturing
facility
London, UK
Moscow, Russia
Edmonton, Canada
R&D site
CRI Leuna, Germany
Port Allen, USA
Shell Martinez
catalyst plant, USA
The Hague, the Netherlands
Shanghai, China
Shell Catalysts &
Technologies HQ,
Houston, USA
Pittsburg, USA
Shell Technology Centre
Houston, USA
Beijing, China
Dubai,
UAE
Shell Technology Centre
Bangalore, India
Singapore
10
Shell has unparalleled FCC experience spanning over 70
years as an owner, operator and licensor
As an owner and operator
1300 unit-years
of operational experience
>350 FCC shutdowns
70 years
of R&D
with continuous learnings
and design improvements
As a
licensor
>65
FCC revamps
since 1980
>75 TSS
(new/revamped) since
1969
33
grassroots
FCC units
11
FCC-PT/FCC integration has never been more important
There are over 400 FCC operations worldwide processing >17 million bpd of
feed with 60–70% pretreating their feed with an FCC unit
Ageing assets
Declining FCC feed quality
Low-sulphur gasoline mandates
IMO 2020
Petrochemicals
Reliability
12
Identifying your objectives and constraints
What current or expected operational
constraints are you seeing in your
FCC-PT operations?
What are your main goals on the FCC
unit (gasoline, LCO, propylene, etc.)?
When forecasting FCC-PT impact from operating
changes, what are the implications for the FCC?
What current or expected
operational constraints are you
seeing in your FCC operations?
13
Three key levers for FCC-PT optimisation
The FCC-PT unit’s goals
HDS, HDN, HDPNA,
Combo Mode
Temperature
profiles
Catalyst
selection
■ Decrease the FCC’s
constraints
■ Increase FCC profitability
■ Decrease FCC
emissions
Knowledge of, and communication with, the FCC
process and the post-treat process is also key
14
Conversion
FCC-PT/FCC: The interaction
N, M, C, A
Reactor
Emission
T
s S, N
Coke
Dry gas production
C, A,
Sulfur
Nitrogen
M
REACTOR
Regen
Metals
T
Carbon
REGENERATO
R
RISE
R
FRACTIONATOR
Aromatics
M
AIR BLOWER
Cat circulation
C, A
API of LCO+
products
C, A
Sulfur, Nitrogen,
Aromatics in products
S, N, A
15
FCC-PT/FCC: The interaction
Reactor
Emission
T
s S
Sulfur
REACTOR
Regen
T
REGENERATO
R
RISE
R
FRACTIONATOR
AIR BLOWER
Sulfur, Nitrogen,
Aromatics in products
S
16
Conversion
FCC-PT/FCC: The interaction
N
Reactor
Emission
T
s S, N
Sulfur
Nitrogen
REACTOR
Regen
T
REGENERATO
R
RISE
R
FRACTIONATOR
AIR BLOWER
API of LCO+
products
Sulfur, Nitrogen,
Aromatics in products
S, N
17
Conversion
FCC-PT/FCC: The interaction
N, M
Reactor
Emission
T
s S, N
Dry gas production
Sulfur
M
Nitrogen
REACTOR
Regen
Metals
T
REGENERATO
R
M
AIR BLOWER
RISE
R
FRACTIONATOR
API of LCO+
products
Sulfur, Nitrogen,
Aromatics in products
S, N
18
Conversion
FCC-PT/FCC: The interaction
N, M, C
Reactor
Emission
T
s S, N
Coke
Dry gas production
C
Sulfur
Nitrogen
M
REACTOR
Regen
Metals
T
Carbon
REGENERATO
R
RISE
R
FRACTIONATOR
M
AIR BLOWER
Cat circulation
C
API of LCO+
products
C
Sulfur, Nitrogen,
Aromatics in products
S, N
19
Conversion
FCC-PT/FCC: The interaction
N, M, C, A
Reactor
Emission
T
s S, N
Coke
Dry gas production
C, A,
Sulfur
Nitrogen
M
REACTOR
Regen
Metals
T
Carbon
REGENERATO
R
RISE
R
FRACTIONATOR
Aromatics
M
AIR BLOWER
Cat circulation
C, A
API of LCO+
products
C, A
Sulfur, Nitrogen,
Aromatics in products
S, N, A
20
FCC-PT technology
advances – NiMo
■ Highest activity
■ Type II catalyst
■ Global success
■ Broad application
■ Type II catalyst
■ Proven exceptional stability
■ Mixed Type I / Type II catalyst
21
CENTERA GT DN-3655 is designed to improve FCCU feed quality
Significant HDN activity increase
■ HDN: >25% increase
Boost in HDS activity
■ HDS: up to a 15% increase
Improvement in hydrogenation
■ Increased delta-gravity
■ Increased HDPNA saturation
Robust applicability
■ Wide feed property range:
■
HSRGO, VGO, HVGO, HKGO
■ High endpoint feeds
Performance in medium- and high-pressure
operations with challenging feed
22
FCC-PT technology
advances – CoMo
■ Highest HDS activity
■ Near NiMo level of HDN
■ Type II catalyst
■
■
■
■
Highest HDS activity
Minimum H2 consumption
Low press stability
Type II catalyst
23
CENTERA GT DC-2655 and CENTERA GT DC-2656 are designed to
enhance HDN and HDS performance
Significant HDN activity increase
■ DC-2655 HDN: 105–110 RVA
[DC-2650=100]
■ DC-2656 HDN: 120–130 RVA
(near DN-3651 performance!)
Step out HDS activity!
■ DC-2655 and DC-2656 HDS: 120
RVA [DC-2650=100]
Robust applicability
■ Wide feed property range:
■
HSRGO, VGO, HVGO, HKGO
■ High endpoint feeds
Performance in low- and
medium-pressure operations
24
FCC-PT application covers a wide range of operations
25
What is the measure of FCC-PT performance?
Operational reliability and feed flex
Performance and cycle life
■ Metals capacity vs activity
■ FCC constraints and capabilities
■ Pressure drop vs. activity
■ Hydrogen optimisation
■ Feed flex and swing cuts
■ Cycle life objectives (time,
■ Current HDS targets (SOx, products)
■ Protection from process upsets
sulphur, nitrogen, ASAT)
■ MHC (distillate vs mogas yields)
■ Reactor internals and other
technology enablers
Commercial balance
■ Fill cost sensitivities
■ Stacking (SENTRY, low cost, regen, rejuv)
26
The FCC-PT/FCC integrated solutions
We use various tools, techniques, technologies and
tactics to help you achieve your objectives
HTU
reactor
internals
Frac-tionati
on
Feed
assessmen
t
Catalyst
technology
FCC-PT
fouling
abatement
Revamp
options
Desired
product
yields
Training
FCC
internals
Diagnosis
Kinetic
models
SENTRY
Protection
27
FCC units supported by Shell
THIRD-PARTY
SHELL
Deer Park (VGO)
Convent (VGO)
Puget Sound (VGO)
Martinez (VGO)
Sarnia (VGO)
Pernis (VGO)
Norco (Resid) (>2 CCR)
TSA WITH SOME SHELL OWNERSHIP
•
•
YOKKAICH SEIBU TOA
• SAPREF
Raizen
•
•
MIRO
PCK
• Essar
• Equinor
• Reliance
• Hyundai Oilbank
• Petrovietnam
• Geelong
• Pertamina
• Port Dickson
• Sriracha
• PTT
• Orpic
• Sonaref
• Tupras (2)
• Cardon Amuay El Palito
CHEMICALS FLUIDIZED
• Ecopetrol
BED
CLIENT
• SADAF
Petrotrin
28
• Isla
Pilot plant, modelling and training offerings
Our proven skillset is currently serving Shell’s eight FCCUs, as well as various third-party sites, through a
broad range of capabilities such as:
Technical support and diagnosis
SHARC process
modeling
Hardware design
CFD modeling
Pilot plant testing
Feed nozzle
testing/design
Training
29
Diagnosing tools
FCC feed impact matrix
FCC constraints matrix
30
Shell Catalysts & Technologies
licensed FCC hardware
31
Shell Catalysts & Technologies licensed FCC hardware
alternate view
Regenerator vessel
Integrated TSS
when plot space
is limited
Reactor vessel
Integrated
TSS
32
Shell has operated, developed and continuously improved its revolutionary FCC
feed injection nozzles over the last 30 years
Improved atomisation – For
increased conversion, enhanced
feed flexibility and high reliability
Benchmarked
in both cold flow
High frequency
opportunity (every 1–2
turnarounds)
Low capital
revamp
(STCH feed atomization pilot
plant) and operating units
33
Validated yield benefits to Shell Feed Nozzles
Yield shifts – Normalized for feedstock properties and
operating conditions
Yield shifts, Lvol.%
Audited
■ Incremental conversion exceeded expectations (all
Conversion
1.1
Bottoms
(1.2)
Dry gas + Coke
0.4
Gasoline + LCO
1.5
LPG + Gasoline
0.9
Total liquid product
0.2
from bottoms)
■ More gasoline but less LPG contributing towards
less total liquid yield than forecasted
34
Shell cyclone systems are designed for reliability, performance and ease of
maintenance
Cyclones were a major cause of unplanned shutdowns and slowdowns in the 1980s – an R&D program
helped reduce shutdowns by 90% in eight years
Standard Shell design cyclones (Rg/Rx side)
Close-coupled Shell cyclones (Rx side)
■ Proven design
■ First to implement close-coupled cyclones in
■ Vortex stabilizer
■ Gas outlet tube
■ Coke catcher
■ Higher separation efficiency than conventional
cyclones
1955 (Anacortes, WA USA)
■ Minimum post riser cracking for minimum HC
presence in reactor vessel, minimum coke
formation and dry gas
■ Easy access for maintenance
35
Shell is a leader in flue gas technology (TSS)
Shell is the original inventor and the leading
<50 mg/Nm
provider of TSS technology
typical particulate emission
3
Proprietary swirl tube plus
76
units
worldwide
56 years experience
regenerator cyclone protects
downstream equipment
36
Shell Third Stage Separator (TSS) & Fourth Stage Separator (FSS)
37
SHARC: Shell’s FCC process model
■ Used in approx. 50 refineries
■ Extensively validated against commercial
FCC/RFCC test data
■ Integrates with FCC/RFCC on-line optimization
system and refinery planning and scheduling tools
Key differentiators
■
Accuracy
■
Easy interface
■
Quick response
■
Versatile projection capability
■
Unit monitoring and data normalization
Demonstrated improvement in profitability by
0.10–0.50 US$ per barrel through improved unit
operation and catalyst selection validation
38
Commercially proven technology – Shell Deer Park FCC unit
39
FCC Technology translated into refinery success
▪ Can be taken advantage of if
properly planned for
Feed
properties
Unit
operation
Catalyst
selection
Reliable
design
Just because the FCC can
process something, does
not mean it is economical
Can most often be
leveraged via feed
flexibility
▪ Understand long-term E&S drivers,
and crude purchasing plan
▪ Stay abreast of FCCU constraints
▪ Monitor unit performance and adjust
LP
HT of FCCU feed helps improve conversion on the FCC, but must
be mindful of unit constraints
40
What does a successfully integrated FCC-PT/FCC solution look like?
Feed flexibility
■
Greater aromatic
Change FCC-PT run length
■
reduction at SOR
■
Be careful to avoid
■
reducing the overall
coke yield too much
■
Economic evaluation is
Improve product
properties and reduce
emissions
■
Tier III – Increased
key
severity can enable
SHARC FCC process model
higher-sulfur crudes
to quantify FCC yields
■
Higher octane –
Catalyst additions or
Potentially allows for
Consideration of FCC
improved feeds can help
higher ROT and reduces
constraints is key
mitigate worsening feed
post-treating
quality for extended runs
requirement
■
41
Proof point: Leveraging high severity on the CFH – Shell refinery
API gravity
Sulfur (ppm)
CFH product
(previous cycle)
CFH product
(current cycle)
19.3
21.2
2000
Total nitrogen (ppm) 2800
2000
2340
Basic nitrogen
(ppm)
900
Total arom (wf%)
15.7
13.5
CCU conv (%)
73.2
74.2
HTU
reactor
internals
Frac-tionati
on
Feed
assessmen
t
Catalyst
technology
FCC-PT
fouling
abatement
Revamp
options
680
Desired
product
yields
Training
FCC
internals
Diagnosis
Kinetic
models
SENTRY
protection
42
Proof point: Increasing FCC-PT severity
– Third-party refiner
■ Upgrading catalyst on the CFH allowed the refiner
to blend ~2 wt.% of SR into the FCC feed diet
■ Re-route slip stream of SR from coker to FCC
■ FCCU conversion for feed with SR was expected to
be lower compared to base – however, new Shell
feed FCCU nozzles allowed ~0.5 wt.% conversion
pt. to be regained, at low incremental cost
Feed
assessmen
t
Catalyst
technology
FCC
internals
Diagnosis
Kinetic
models
delivered
Training
FCC-PT
fouling
abatement
Revamp
options
Desired
product
yields
Value
HTU
reactor
internals
Frac-tionati
on
SENTRY
protection
$5.5 million
43
Looking forward: Crude oil to chemicals
■ Increase severity on FCC-PT by changing catalyst,
added Reactor volume, etc.
■ Upgrade FCC feed nozzles, and move to close
coupled cyclones
■ Tune SHARC model, optimize FCC catalyst (more
activity, less coke selective)
■ Upgrade to HiFi trays on the deeth/deprop/debut
HTU
reactor
internals
Frac-tionati
on
Feed
assessmen
t
Catalyst
technology
FCC-PT
fouling
abatement
Revamp
options
Desired
product
yields
Training
FCC
internals
Diagnosis
Kinetic
models
SENTRY
protection
44
Looking Forward: Processing difficult feeds
■ Add more demet capability and increase severity
■ Upgrade FCC feed nozzles, add PentaFlow baffles,
upgrade cyclones
matrix, metal trapping, activity)
■ Upgrade post-treat to meet sulphur specs, etc
HTU
reactor
internals
Frac-tionati
on
■ Tune SHARC model, optimize FCC catalyst (more
Feed
assessmen
t
Catalyst
technology
FCC-PT
fouling
abatement
Revamp
options
PentaFlow
Desired
product
yields
Training
FCC
internals
Diagnosis
Kinetic
models
SENTRY
protection
45
Key takeaways
1
Substantial collaborative gains realized when considering
the FCC-PT and FCC units as an integrated operation.
2
Capturing maximum margin across the refinery requires a highly customised approach that
carefully takes into account your specific constraints and objectives, including those of the
downstream units.
3
Shell has unparalleled FCC and FCC-PT experience spanning over 70 years as an owner,
operator and licensor, and provides…
■ leading-edge FCC-PT catalysts, reactor internals and services, and
■ FCC hardware, modeling and services
…to help operators capture maximum value.
46
47