Honeywell UOP Uniflex™ Technology Heavy Oil Upgrading Strategies for Improved Refinery Economics Gary R. Brierley │ Honeywell UOP © 2018 UOP LLC. A Honeyw ell Company All rights reserved. UOP 8230A-0 MARPOL Annex Will have Worldwide Effects on High Sulphur Fuel Oil (HSFO) Demand and Price • Significantly reduced HSFO use for bunkering as a result of new regulations • Surplus residue expected after residue conversion and power generation usage • Will significantly impact product price differentials in 2020 Product Price, $/BBL 30.00 20.00 10.00 0.00 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2040 -10.00 -20.00 -30.00 -40.00 -50.00 • HSFO expected to be priced at significant discount after 2020 compared with 2016 (~40% lower) UOP 8230A-1 1 Ultra-low sulfur diesel ECA MGO (0.1 % S) Residual fuel oil 1% Price Recovery Assumes Ships Will Install Scrubbers LS Bunker (0.5 % S) Gasoil 0.1% sulfur Residual fuel oil 3.5% 2 Refinery Options to Upgrade HS Fuel • Desulphurise HS bunkers with process such as RCD Unionfining™ process Conversion Options ‒ Limited product value uplift • Slurry bed process such as Uniflex™ process ‒ Good payback • Ebullated bed process ‒ Limited conversion • Delayed coking process ‒ Similar capex. Lower payback. UNIFLEX • Process VR in new SDA and desulphurise DAO ‒ Lowest capex, but still makes some HSFO Treating Options Uniflex Units Give Highest NPV Based On Our Analysis Uniflex Performance with Integrated Distillate Unionfining™ Unit 8-11 H2S, NH3 Gas, LPG 12-15 Naphtha 55-60 Diesel 8-10 VGO 1-4 Vacuum Residue Feed 100 UNIFLEX UNIT (Wt-%) Catalyst H2 4- 6 3 Hydrotreated in Integrated DHT to HCU feed Pitch 95% conversion : Higher conversion comparable to other residue conversion processes Euro V Diesel : Highest yield of diesel compared to other slurry processes Minimum VGO : Can be accommodated in existing conversion units Naphtha Pitch: UOP 8230A-3 : < 1 wppm S and N : Cement Plant, Gasification Unit, Boiler/Kiln, or solidified into pellets 4 UOP Uniflex Unit Including Integrated Hydrotreater DHT Heater Make-up Hydrogen External Feeds HHPS Hydrotreating Reactor WHPS Uniflex Reactor Recycle Gas Heater Vacuum Residue Feed Catalyst External Diesel HLPS WLPS WLPS Feed Heater Uniflex Fractionation Section CHPS CLPS Recycle HVGO from Uniflex Fractionation Section Integrated Hydrotreater Significantly Minimizes the Number of Pieces of Equipment, therefore Capex is Reduced. External Diesel Streams Could be Hydrotreated to Euro 5 To DHT Fractionation Section 5 Petro-Canada Montreal CANMET Unit • 15 years of operation • Achieved 95% conversion • Processed many vacuum residues • Also processed – VGO – Visbroken VR – FCC Slurry Oil • Long term operational learning curve resulted in 97%+ availability UOP 8230A-5 Uniflex Process - Continuous Improvement 6 Based on Voice of the Customer • New catalyst innovations • Process enhancements Uniflex Process Continuous Improvement • High conversion to valued products • Process design for sustained operability and reliability • Economically efficient catalyst systems, and manufacturing capability • Economically advantaged disposition for all products • Robust feed and product characterization Uniflex MC - Further Improvements to a Commercially Proven Process Molybdenum-based MicroCat™ Catalyst Key Enabling Technology Makeup H2 7 • Moly on a carbonaceous base • High-activity catalyst allows for smaller reactors • No proprietary catalyst purchases ‒ Produced at the refinery from raw materials readily available on the open market • Low injection rate required Feed MicroCat Catalyst Preparation Section UOP 8230A-7 Recycle from Fractionation Two Reactors in Series: Enhanced Reliability and Performance Makeup H2 • Higher single-train capacity • Reduced reactor size ‒ Closer to true plug flow • Improved yields ‒ Product disengagement • Staged conversion – Lower conversion per stage – Optimize yields and stability by controlling conversion in each reactor Feed MicroCat Catalyst Preparation Section UOP 8230A-8 Recycle from Fractionation 8 External Reactor Circulation: Low Conversion per Pass, Improved Yields Makeup H2 • Reduced recycle gas rates ‒ Liquid recycle mixing • Reduced utilities ‒ Lower heater duty, use heat of reaction • Operates in non-foaming regime ‒ No anti-foam required ‒ No Si in products • Carries solids out of reactor Feed MicroCat Catalyst Preparation Section UOP 8230A-9 Recycle from Fractionation 9 10 Heavy Product and Bottoms Recycle • Active catalyst recycled to 2nd reactor • Improved Stability – No precipitation – Staged aromaticity • Selective conversion of heavy product • HVGO used in process and recycled to extinction Maximise High Value Products 11 Solids Removal Enables Conversion up to 98% Recycle H2 C4- • Removes metals, mesophase, beta resins from unconverted pitch Flash Gas Naphtha Diesel Diesel LVGO • Individual process steps well proven • Dried solids to metals recovery • Recovered liquid to fuel oil or recycled to reactors • Attractive option if environmental regulations prohibit burning the pitch Solids Recovery UOP 8230A-11 12 Next Generation Uniflex MC Recycle H2 2 Reactors w Interstage Sep Makeup H2 C4- No Quench or Anti-foam Flash Gas Naphtha Diesel Diesel LVGO Feed Pump-Around no net HVGO VR Matrix Catalyst Made by refiner on site UOP 8230A-12 VTB & Slop Wax Recycle Microcat Catalyst Preparation Section No Heater Solids Recovery HVGO 13 Typical Uniflex MC Yields – Solids Recovery Weight % Yields 5 H2S, NH3 C1 - C2 LPG 8 L Naphtha 9 H Naphtha 4 6 Vacuum Residue Feed 100 UNIFLEX UNIT 12 3 10 LPG 12 L Naphtha 12 H Naphtha 66 (Wt-%) 56 H2 Liquid Vol % Yields 2 Diesel Diesel LVGO LVGO 13 Pitch 2 Catalyst 98% Effective Conversion Pitch May be Hydrotreated in Integrated DHT to improve quality 14 UOP Uniflex Process Licensed Units Name Location Capacity, MMTA Feeds Start-up 1985 S/D 2003 Petro-Canada, Montreal Canada 0.3 Venezuelan, Mexican, North Sea, Cold Lake, Visbroken VR NRL, Pakistan Pakistan 0.6 Light Arabian, Pakistani 2023 Shandong Longgang China 1.35 Med Arab, Merey, Russian Export 2021 Oil Gas Trade CJSC Russia 0.4 SDA Pitch Cancelled Undisclosed China 0.8 Merey, Russian Export, Shengli Delayed Undisclosed China 0.9 Arab Light, Russian Export Delayed Undisclosed China 0.8 Arab Light, Russian Export Delayed UOP 8230A-14 15 Licensing Activity Since Uniflex MC Introduction Name NRL, Pakistan Location Pakistan Capacity, MMTA Feeds Status and Start-up date ~1.0 Light Arabian, Pakistani Reconfig Study for higher refinery feed rate – Re-engineering to follow Start Up – 2023 Basic Engineering in Progress, on hold pending partner financing Start Up – 2021 Shandong Longgang China 1.35 Med Arab, Merey, Russian Export Oil Gas Trade CJSC Russia 0.4 SDA Pitch Refinancing in progress, upgrade to Uniflex MC 0.84 Russian Export Visbroken VR and FCC Slurry Basic Engineering in progress, Completion in Feb 2019 Start Up – 2022 1.54 Arab Blend VR and FCC Slurry Oil Basic Engineering in progress, Completion in Mar 2019 Start Up – 2020 Undisclosed ZhongGu PetroChemical UOP 8230A-15 Europe China Case Study for 350 KBPD Russian Refinery 16 Proves Uniflex Economics Vac Flash + Vac Flash + Uniflex Coker SDA + Uniflex ISBL Capex $MM 1372 1204 1609 OSBL Capex $MM 686 602 756 Total Capex $MM 2058 1806 2365 Net Margin Relative to Base Case $MM/yr 765 414 764 Net Margin Relative to Base Case $/bbl 6.16 3.33 6.15 Simple Payback Yr 2.7 4.4 3.1 2X Uniflex Doubles Refinery Margin, 3-year Payback Uniflex MC Process the First Step in Crude-to-Chemicals Project • C1-C2: – Fuel Gas or Steam Cracker feed • LPG: – Ideal Steam Cracker feed for olefins production – Enhanced LPG Recovery option to recover 99% of LPG as product – High normals content 77% versus 44% typical from HCU • Light Naphtha: – Steam Cracker feed – High normals content (C5) 77% versus 44% typical from HCU • Heavy Naphtha: – Reformer feed for Fuels or Aromatics • Diesel – Produce Euro V diesel directly from Uniflex unit with Integrated DHT reactor, or – Feed to HCU for additional Naphtha (Aromatics) production Diesel Product can be Processed in Low-pressure HCU for Chemical Production 17 18 Case Study for a 20 MMTA Petrochemical Complex SR Naphtha CCR Platforming 4 x 3200 KMTA NHTU 3200 KMTA Aromatics Complex 3 x 2800 KMTA Crude Unit L P G 3400 KMTA B T X 8400 KMTA C3 O L E F I N S 500 KMTA G A S O L I N E 4300 KMTA SR Diesel Crude 20,000 KMTA SR VGO FCC 3200 KMTA FCC CSO Vacuum Unit Isomerization FCC LCO HC UCO Unicracking 1st Stage Unicracking 2nd Stage Uniflex LVGO Vacuum Residue Integrated Uniflex/DHT 2 x 2800 KMTA Uniflex Naphtha & Diesel D I E S E L 400 KMTA Pitch Solids to Cement Plant Uniflex Process Enables Zero Fuel Oil, Max Petrochemicals Complex 19 Optimised Configuration – Superior Economics •Reduced unit and equipment count ‒ Lower capital and smaller plot space ‒ Lower hydrocracking capacity required ‒ Can produce diesel even when hydrocracker shut down •Higher-quality feed to existing FCC unit ‒ Higher hydrogen content ‒ Higher gasoline and propylene yields •Richest feed to Platforming unit ‒ Highest aromatic yield for BTX production ‒ High hydrogen yield UOP 8230A-19 20 Uniflex MC Process – Enhancement Benefits Enables 95 to 98 Wt-% conversion (525°C+ material) • 95% base conversion, 98% conversion with solids recovery option UOP 8230A-20 Reduced catalyst addition rate • Injection rate in ppm of fresh feed • Highly efficient molybdenum based catalyst • On-site catalyst manufacturing capability Reduced CAPEX and OPEX • Smaller reactors • Lower recycle gas rates • Lower fired heater duty Improved VTB (Vacuum Tower Bottoms) quality • Low solids content, low sulfur level, and no iron • Fungible product (e.g. fuel, low sulfur petcoke or asphalt production) Solids recovery from VTB • Recovered oil product quality upgraded, or • Recycle operation in unit for higher conversion and yields • Recovered solids to metals recovery 21 UOP Heavy Oil Development Center • Expanded capabilities to support Bottom of Barrel Technology Development • New facility for pilot plant expansion at UOP – High throughput Feed Preparation / Fractionation: • 3 BPD capacity multi-column fractionation unit – Uniflex pilot plant: • High capacity operation with multiple reactors capable of staged operation – Solvent De-asphalting (SDA) pilot plant: • Multi solvent capability: Propane, Butane, Pentane – Flexible Heavy Oil Hydroprocessing pilot plant: • Heavy Oil Technologies fully integrated with UOPUnicracking™ and RCD and Distillate Unionfining™pilot plants • Capable of high pressure (5000 psi) operation with reactor configurable in all Hydrocracking and Hydrotreating modes UOP 8230A-21 22 Conclusions • HS bunkers, restricted in ships after 1st Jan 2020, will have negative effect on high sulphur fuel oil (HSFO) pricing • Refineries with significant HSFO production will require profitable residue conversion projects • For zero HSFO, the Uniflex MC Process provides for conversion at an excellent payback • Huge R&D effort by UOP with Uniflex MC Process results in a highconversion design with low catalyst consumption and better pitch quality UOP 8230A-22 UNIFLEX 23 UOP 8230A-23
