Hydrocarbon Processing July 2014

We didnt build the rst Boiler.
But in all your born days, you wont nd a manufacturer today that makes a boiler that performs
better than a RENTECH boiler. Its no yarn. Each of our boilers is custom-designed by RENTECH
engineers and built in state-of-the-art facilities to operate efciently in its unique application in a
variety of industries. Our innovative, cost-effective technology will add value to your day-to-day
operations with lasting benets for the competitiveness of your business. Dont wait another day,
call us about your next boiler project.
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HydrocarbonProcessing.com | JULY 2014

BONUS REPORT: LNG

Data monitoring and simulation
improve LNG transport
and terminal design
CHANGING
HPI ECONOMICS
New conversion technology
cuts ethylene production costs
SPECIAL REPORT:
Refinery of
the Future
We didnt build the rst Boiler.
But in all your born days, you wont nd a manufacturer today that makes a boiler that performs
better than a RENTECH boiler. Its no yarn. Each of our boilers is custom-designed by RENTECH
engineers and built in state-of-the-art facilities to operate efciently in its unique application in a
variety of industries. Our innovative, cost-effective technology will add value to your day-to-day
operations with lasting benets for the competitiveness of your business. Dont wait another day,
call us about your next boiler project.
325.672.3400
WWW.RENTECHBOILERS.COM
JULY 2014|Volume 93 Number 7
HydrocarbonProcessing.com
SPECIAL REPORT: REFINERY OF THE FUTURE
49 How to make anything with a catalytic cracker
W. S. Letzsch and C. Dean
55 Consider high-fidelity online motor fuel characterization
M. Trygstad
59 Case history: Modernization of Russias refining industryPart 1
V. V. Galkin, V. Makhianov and M. I. Levinbuk
65 Which margin levers impact Group I and Group II
base stock competitiveness?Part 2
I. Moncrieff
BONUS REPORT: LNG
71 How sensitive is your treating plant to operating conditions?
R. Weiland, J. Santos, A. Praderio, N. Maharaj and M. Schultes
77 Maximize LNG carrier efficiency through integrated optimization
P. Guillemin
HPI FOCUS: CHANGING HPI ECONOMICS
81 Ethanol-to-ethylene process provides alternative pathway to plastics
C. Moffatt, S. Hodge and D. Cook
Cover Image: Enis Venice biorefinery is the first refinery in the world to convert from a conventional refining
complex into a biofuel production operation based on the companys patented Ecofining technology. The
refinery is producing mainly high-quality green diesel in balance with the available hydrogen from the former
hydroskimming unit. After 2015, the refinerys biofuel production will be maximized to achieve 500,000 tpy
with the addition of a dedicated hydrogen plant.
DEPARTMENTS
4 Industry Perspectives
10 News
21 Industry Metrics
85 Events
86 Marketplace
88 Advertiser Index
90 People
COLUMNS
9 Editorial Comment
What is the refinery of the future?
23 Reliability
Things to know and do
before starting new initiatives
27 Automation Strategies
HPI demands higher availability
of rotating equipment
29 Project Management
What skills will project managers
need in the next decade?Part 1
31 Global
The reshaping of Latin Americas
petrochemical industry
35 Petrochemicals
Major US players bet on propane
dehydrogenation
37 Gas Processing
Eastern nations look to LNG
for energy, environmental solutions
41 Boxscore Construction
Analysis
South AfricaAfricas clean fuels leader?

45
Viewpoint
The journey to a value-adding
refinery project
70
48
35
4JULY 2014|HydrocarbonProcessing.com
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Tale of two continents
Growing supplies by non-OPEC countries has introduced
some calm for crude oil prices. However, other factors are in-
fluencing profitability and margins. In the US, the abundance
of shale oil and the 40-year ban on exporting crude oil has
created unusual conditions. Now, North American refineries
have an advantage as compared to European refiners. Accord-
ing to a new US Energy Information Administration report,
companies with refineries primarily located in North America
are reaping $6/bbl in profits as compared to those operators
with assets in Europe.
As illustrated in FIG. 1, the shift in earnings potential began in
2010. That is the same time in which significant supplies of shale
oil began entering the North American market. This trend also
coincides with the economic recovery of the US. Some of the
additional profits can be attributed to the discounting of WTI
due to infrastructure bottlenecks. However, these perks will
dissipate as more effective distribution infrastructure evolves.
According to a recent Wood Mackenzie study, US demand
for refined transportation fuels increased on average about
400,000 bpd in 2013. Much of the new demand is for diesel.
However, looking forward, the demand increase for diesel will
moderate and gasoline demand will effectively endure losses of
200,000 bpd beginning in late 2015.
ACROSS THE POND
The European refining industry contends with a difficult
environment. Much of this regions refineries were configured
for gasoline production. The full effects from dieselization are
now being seen. Result: Europe must import diesel to meet
regional demand. From an economics position, European re-
finers are at a disadvantage to refine more crude to produce
much-needed diesel and coproduce more unwanted gasoline.
For Europe, the supply and demand situation for transporta-
tion fuels is out of balance, and utilization rates are below 80%,
thus compounding the situation further (see Industry Metrics,
pg. 21). The true winners are those refiners that can export
high-quality refined products to Europe at this time.
-2
2004
Source: US Energy Information Administration, based on Evaluate Energy database
*Note: 2014 includes data for the rst quarter of 2014
2005
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Companies with reneries mainly in North America
Companies with reneries
throughout the world
2012 2013 2014*
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FIG. 1. Earnings for refineries in different regions, 20042014.
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/ exta||c.com
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Energy. In addition, conference sessions will explore the technological and operational advancements in GTLs
that are reducing costs, driving market growth and increasing global activity.
Specic topics to be discussed include: syngas, the future of non-FT GTL, whats new in small scale GTL,
catalysts, modular construction and emerging technology and future users.
>> The 2014 Conference Program is Developed by our Esteemed Advisory Board, and Features:
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ExxonMobil Research
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+1 (713) 520-4402 or [email protected]
General Inquiries: Melissa Smith, Events Director,
Exhibit or Sponsor: Lisa Zadok, Events Sales Manager,
Continental Breakfast Sponsor
Wednesday, July 30, 2014 Agenda
7:30 a.m. REGISTRATION
8:30 a.m. OPENING REMARKS: John Royall, President and
Chief Executive Ofcer, Gulf Publishing Company
8:459:15 a.m. KEYNOTE PRESENTATION: TBD
9:159:40 a.m. The Economics of Monetizing North American
Natural Gas
Tom Jones, Manager of Studies, Bechtel
Hydrocarbon Technology Studies, Inc.
9:4010:10 a.m. COFFEE BREAK
SESSION ONE: SYNGAS
10:1010:35 a.m. Coprocessing of Waste CO
2
with Natural Gas to
Produce High Value Transport Fuels
Paul E Koppel, Vice President, Process Technology,
Fluor Enterprises
10:3511:00 a.m. Autothermal Reforminga Preferred Technology
for Conversion of Natural Gas to Synthesis Gas in
Industrial GTL Applications
Soren Martin Olsen, Haldor Topsoe
11:0011:25 a.m. Partial Oxidation GasTurbine Based TurboPOx
Syngas Generation Technology for GTL Applications
Dr. Steven Fusselman, Program Manager
Energy Services, Aerojet Rocketdyne and
Dr. Arunabha Basu, Institute Engineer,
Gas Technology Institute
11:2512:25 p.m. LUNCH
SESSION TWO: THE FUTURE OF NONFT GTL
12:2512:50 p.m. CO
2
and CO Fermentation: A Route from Waste to
Fuels and Chemical Building Blocks at Scale
Dr. Michael Schultz, Vice President, Engineering,
LanzaTech, Inc
12:501:15 p.m. A New Era in GTL: CostEffective Technology
Enables Conversion of Natural Gas to DropIn Liquid
Fuels at Small Scale
Dr. George Boyajian, Vice President,
Business Development, Primus Green Energy
1:151:40 p.m. TBD
1:402:10 p.m. COFFEE BREAK
SESSION THREE: WHATS NEW IN SMALLSCALE GTL
2:102:35 p.m. Microchannel FischerTropsch Reactors: Enabling
Smaller Scale GTL
Jeff McDaniel, Commercial Director, Velocys
2:353:05 p.m. Case Study: GTL Technology DevelopmentThe
Optimal Path to MicroGTL Commercialization
Ebrahim Salehi, Process Engineer, Hatch
3:054:20 p.m. PANEL DISCUSSION: MODULAR GTLS
Invited participants include: EmberClear, Oberon
Fuels, Velocys and others
4:20 p.m. CLOSING REMARKS: John Royall, President and
Thursday, July 31, 2014 Agenda
7:30 a.m. REGISTRATION
8:30 a.m. OPENING REMARKS: Stephany Romanow, Editor,
Hydrocarbon Processing
8:459:15 a.m. KEYNOTE PRESENTATION: The Economics of Gas-
to-Liquid Conversion Technologies: Annual Energy
Outlook 2014
Vishakh Mantri, Ph.D., P.E., P.M.P., Ofce of Petroleum,
Natural Gas and Biofuels Analysis, U.S. Energy
Information Administration
9:159:40 a.m. Economics of Ammonia Production from
OffGases
V.K. Arora, DirectorProcess & Operations,
Kinetics Process Improvements, Inc.
9:4010:10 a.m. COFFEE BREAK
SESSION FOUR: EMERGING TECHNOLOGY AND FUTURE USERS
10:1010:35 a.m. Mixed Alcohols as an Oxygenate and Fuel Extender
Peter Tijm, Chief Technology Ofcer, Standard
Alcohol Company
10:3511:05 a.m. Case Study: Renery Integration with Gasication
Dr. K.S. Balaraman, Chief Consultant,
Wissenschaftler Consulting Engineers
11:0511:30 a.m. Methanol to Gasoline Technology - an Alternative for
Liquid Fuel Production
Mitch Hindman, ExxonMobil Research &
Engineering Company
11:3011:55 a.m. TBD
11:5512:55 p.m. LUNCH
SESSION FIVE: CATALYSTS
12:551:20 p.m. Effect of Addition of Zeolite to IronBased
ActivatedCarbonSupported Catalyst for Fischer
Tropsch Synthesis in Separate Beds and Mixed Beds
Avinash Karre, Jacobs Engineering
1:201:45 p.m. The New CatFTTM Process, Dr. Thomas Holcombe,
President & CEO, Green Impact Fuels, LLC
1:452:10 p.m. Revolutionary Fixed Bed Reaction System for GTL -
FT/MeOH/DME
Tim Gamlin, V.P. Gas Conversion, Johnson Matthey
Davy Technologies Ltd
2:102:40 p.m. COFFEE BREAK
SESSION SIX: MODULAR CONSTRUCTION
2:403:05 p.m. TBD
3:054:05 p.m. PANEL DISCUSSION: MODULAR CONSTRUCTION
Invited participants include Chemex, Zeton, Maverick
Synfuels and others
4:05 p.m. CLOSING REMARKS: John Royall, President and
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Answers for energy.
siemens.com/energy/compression
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Challenging customer requirements call for excellent compression solutions.
Editorial
Comment
STEPHANY ROMANOW, EDITOR
[email protected]
Hydrocarbon Processing|JULY 20149
For years, technology experts and en-
gineers have discussed the elements and
operations that will define the refinery of
the future. The refining industry has made
great progress from the early days. How-
ever, old and older does not directly cor-
respond to being obsolete. The American
Refining Group (ARG) Inc. still operates
the oldest continuously running US-based
refinery at Bradford, Pennsylvania. This
10,000-bpd refinery began operations in
1881, and it still produces high-quality
waxes, lubricant base oils, gasoline and
fuels, as well as a wide variety of spe-
cialty products. Much has changed in the
130-plus years since this ARG refinery be-
gan, and it continues to upgrade Pennsyl-
vania crude into consumer products.
By definition. The refinery of the fu-
ture is a place where advanced technolo-
gies and highly skilled workers will raise
to new levels the standards for efficiency,
safety and plant intelligence, said Lance
Gyorfi, vice president of refining, Chev-
ron Products Co. He made that statement
in 1998 at Chevrons Salt Lake City, Utah,
refinery, when this site was celebrating its
50th anniversary. Gyorfi also said, Future
refineries will meet societys transporta-
tion needs, regardless of how vehicles are
powered. They (refineries) will also adapt
to a changing slate of raw materials.
In 1998, refineries and petrochemical
plants had made huge changes in opera-
tions, methodologies and automation. At
that time, instrumentation, automation
and software companies pushed through
old boundaries regarding the connectiv-
ity of process information and control,
and laid the foundation to bring more in-
telligence to the field and process equip-
ment. That trend still continues.
Moving forward. In 2003, an HP edito-
rial discussed the digital refinery or pet-
rochemical facility as the future. To get
to the digital age, the HPI would rely on
continued improvement and innovations
for process technologies, catalysts, equip-
ment, automation and software. The
digital age used advanced communication
systems that moved the intelligence to
field devices. The information/monitor-
ing network no longer needed direct input
from operators. Through advanced com-
puters, software development and minia-
turization, operators could now focus on
other tasks to increase profitability.
Developments. A key to better opera-
tions involves improvements between the
operator and machine (process) interfac-
es. Refineries operate on a 24/7 schedule;
keeping plant staff at 100% efficiency, es-
pecially during night operations, remains
a problem. Honeywell has addressed this
problem with a new control room console,
the Experion Orion Console. This new
console uses a large, flexible, ultra-high-
definition display that provides clear status
assessments of the process for the opera-
tors needs (FIG. 1), thus improving their
performance on the job, which impacts the
safety and efficiency of the facility.
The refinery of the future involves
both technology and the changing roles of
people. Together, amazing tasks can be ac-
complished; this means that better prod-
ucts, more efficient operations and safer
facilities are possible.
INSIDE THIS ISSUE
45
Viewpoint. Capital
projects are a means of
creating value from assets. The more
thorough a projects planning and
management, the more successful
it is likely to be. Sleyman zmen,
vice president of refining and
chemical licensing for Shell Global
Solutions International BV, discusses
the journey to ensure that your
investment plans remain technically
and economically robust in the
new environment.
48
Refinery of the future.
How will crude oil refineries
operate in the future? To be profitable,
refiners must have the flexibility to
adapt to numerous forces; many are
beyond the control of the industry.
Here are a few new technologies and
trends now shaping the international
refining industry.
70
Bonus report: LNG.
The natural gas market
is dominated by upstream development
in shale gas production, particularly
in North America, and by downstream
progress in liquefied natural gas (LNG)
technologies and projects. The July
bonus report features advances
in technologies and market
developments for LNG.
81
HPI focus: Changing
HPI economics.
Tight operating margins make
the ethanol-to-ethylene technology
marketplace a challenging space in
which to compete. However, a second-
generation route has emerged that can
deliver market-leading conversions
at lower cost and complexity than
existing technologies.
What is the refinery of the future?
FIG. 1. Experion Orion Console brings the
plant control room of the future to life
by meeting the changing needs of the
increasingly mobile plant operator.

|
News
API releases three new standards to improve refinery safety
The American Petroleum Institute (API) issued three new first-edition standards to enhance refinery
safety and inspection programs:
RP 583, Corrosion under insulation and fireproofing: This standard will assist with
industry inspection and allow maintenance personnel to fully understand the complexity of
corrosion under insulation and fireproofing, as well as the subsequent ways to reduce
its occurrence at refineries
RP 584, Integrity operating windows: A key part of process safety is the facilitys
inspection program, and this standard was written to assist industry in developing the most
efficient and effective inspection program based on each units unique operational history
RP 585, Pressure equipment integrity incident investigation: This standard describes
how an effective investigation can be structured so organizations can learn from each
incident and use this knowledge to reduce the likelihood of future incidents.
BILLY THINNES, TECHNICAL EDITOR
[email protected]
News
Security of energy
supply in the EU
The European Commission presented
a report on European energy security to
the European Council in late June. The
report points out that the EUs energy
dependence is not new, but it did gain
an added dimension in the light of re-
cent geopolitical events (specifically the
Ukrainian crisis). Temporary disruptions
of gas supplies in the winters of 2006 and
2009 already provided a wake-up call for
the EU, underlining the need of infra-
structure development, increased cooper-
ation and of a common European energy
policy. Since then, the EU has worked to
strengthen its energy security in terms of
gas supply. However, the work is not com-
pleted yet and further steps are needed.
The EUs energy import dependence
has been on the rise since the mid-1990s.
Today, the EU spends more than 1 bil-
lion every day on importing energy. This
is almost a fifth of the EUs total import
bill. In 2012, 53% of the EUs energy con-
sumption was linked to imports (FIG. 1).
In particular, the EU imported 88% of
crude oil, 66% of natural gas, 42% of sol-
id fuels (coal, lignite and peat) and 95%
of uranium.
Who supplies the EU with oil? Based
on the latest figures from 2013, a third
of imports came from Russia, 11% from
Norway and 8% from Saudi Arabia. The
EU paid about 300 billion for the crude
oil imports. On the subject of gas sup-
ply, the 2013 figures show about 39%
Norway and 14% from Algeria. Six EU
member states depend on Russia for
their entire imported gas supply: Fin-
land, Slovakia, Bulgaria, Estonia, Latvia
and Lithuania.
In the realm of solid fuels, about 26%
Colombia and 23% from the US. About
240 million tons of solid fuels were im-
ported in the EU in 2012, of which ap-
proximately 220 million tons came from
non-EU countries.
EU energy mix. Overall, a gradual de-
crease in solid fuels consumption and a
growth in the use of renewables can be
observed for all EU member states. In
2012, EU energy demand stood slightly
above 1,700 million tons of oil equiva-
lent (MMtoe), almost 130 MMtoe be-
low the 2007 pre-crisis level, and similar
to 1995 levels.
Petroleum products provide 34% of
the EUs energy. The bloc is the second
largest oil consumer in the world after
the US. Most of it is used in transport
(95% of transport fuel comes from oil)
and the petrochemical industry.
Gas provides 23% of the EUs energy.
Gas is mainly used for heating and in
electricity production. Almost 19% of
all the electricity generated in the EU
comes from gas. The residential and ser-
vice sectors account for approximately
40%, while industry accounts for about
25% of gross inland consumption.
Solid fuels contribute 17% to the EU
energy mix. The EU is the third-largest
coal-consuming region, after China and
North America. Solid fuels are mostly
used in electricity production and dis-
trict heating plants.
Europe relies on nuclear for 13% of its
energy needs, with 27% of its electricity
coming from nuclear sources from plants
in France, the UK, Sweden, Germany,
Belgium and Spain.
Compared to other world regions, the
EU has few fossil fuel resources. At the
end of 2012, the EUs proved oil reserves
amounted to only 0.4% of global re-
serves. Its natural gas reserves amount to
0.9% of global reserves, and coal reserves
form 6.5% of global reserves. Compre-
hensive information on shale gas re-
serves is not yet available, as exploration
is still at an early stage.
Between 1995 and 2012, the EUs
primary energy production decreased by
almost one-fifth. Natural gas production
dropped by 30%, production of crude oil
and petroleum went down by 56% and
production of solid fuels decreased by
40%. Renewable energy production, on
the other hand, has significantly grown
during recent years; renewables account
for 22% of primary energy production.
Increasing the security of supply has
been an overarching goal of the EU en-
ergy policy for several years. Since the
gas crisis in the winters of 2006 and
2009, the Commission has worked to
strengthen the EUs energy security in
terms of gas supplies and to reduce the
number of member states exclusively
dependent on one supplier. Significant
progress has been made toward the
1995
%
Source: ESTAT SIRENE v2
0
10
20
30
40
50
60
1996 1997 1998 1999 2000
Others
Renewable energies
Crude oil
Solid fuels
Natural gas
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
FIG. 1. Share of EU energy imports, %.
News
12
completion of an internal energy mar-
ket. Rules for network use have been
put in place to avoid congestion in
cross-border infrastructure. Another
important step to secure uninterrupted
supplies in case of external supply dis-
ruption involves installing reverse flow
options that provide a possibility to op-
erate the pipelines in both directions.
To further the EUs energy security,
the report recommends a risk assessment
(energy security stress test) of the EU en-
ergy system to identify supply disruption
risks in the upcoming winter. This would
be conducted on the regional or EU level
by simulating a disruption of the gas sup-
ply. The aim is to check how the energy
system can cope with security of supply
risks and, based on that, develop emer-
gency plans and create backup mecha-
nisms. The exact details of these stress
tests have not yet been agreed upon.
A new way to harness
waste heat
Vast amounts of excess heat are gen-
erated by industrial processes, and re-
searchers around the world have spent
decades seeking ways to harness some
of this wasted energy. Most such efforts
have focused on thermoelectric devices
(solid-state materials that can produce
electricity from a temperature gradient),
but the efficiency of such devices is lim-
ited by the availability of materials.
Now researchers at MIT and Stanford
University have found a new alternative
for low-temperature waste-heat conver-
sion into electricity, in cases where tem-
perature differences are less than 100C.
The new approach, based on a phenom-
enon called the thermogalvanic effect,
is described in a paper published in the
journal Nature Communications by a col-
lection of postdocs and professors at
Stanford and MIT.
Since the voltage of rechargeable bat-
teries depends on temperature, the new
system combines the chargingdischarg-
ing cycles of these batteries with heat-
ing and cooling, so that the discharge
voltage is higher than charge voltage.
The system can efficiently harness even
relatively small temperature differences,
such as a 50C difference
To begin, the uncharged battery is
heated by the waste heat. Then, while
at the higher temperature, the battery is
charged. Once it is fully charged, it is al-
lowed to cool. Because the charging volt-
age is lower at high temperatures than at
low temperatures, once it has cooled, the
battery can actually deliver more elec-
tricity than what was used to charge it.
That extra energy, of course, doesnt just
appear from nowhereit comes from
the heat that was added to the system.
The system aims at harvesting heat
of less than 100C, which accounts for a
large proportion of potentially harvest-
able waste heat. In a demonstration with
waste heat of 60C, the new system has
an estimated efficiency of 5.7%.
The basic concept for this approach
was initially proposed in the 1950s, but
a key advance is using material that was
not around at that time for the battery
electrodes, as well as advances in engi-
neering the system.
That earlier work was based on tem-
peratures of 500C or more, while most
JOHNSON SCREENS
SHAPED SUPPORT GRID (SSG)

designed to be installed into the bottom head of hydroprocessing
or gas dehydration vessels, allowing better liquid and gas fow,
bed utilization, distribution and an overall more effcient process
than traditional fat surface grid assemblies. Patented design.
JOHNSON SCREENS
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media, providing improved performance over traditional plate disc
type distributor designs as well as even distribution and minimal
scouring at the top of the bed. Patented design.
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BILFINGER WATER TECHNOLOGIES

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Australia - Asia Pacifc
Phone +61 7 3867 5555
Fax +61 7 3265 2768
[email protected]
France
Phone +33 5 4902 1600
Fax +33 5 49021616
[email protected]
North & South America
Phone +1 651 636 3900
Fax +1 651 638 3171
[email protected]
News
14
current heat-recovery systems work best
with higher temperature differences.
While the new system has a signifi-
cant advantage in energy-conversion effi-
ciency, for now it has a much lower power
density (the amount of power that can be
delivered for a given weight) than ther-
moelectrics. It also will require further
research to assure reliability over a long
period of use, and to improve the speed
of battery charging and discharging.
Virtually all power plants and manu-
facturing processes, like steelmaking and
refining, release tremendous amounts
of low-grade heat to ambient tempera-
tures, the researchers said in a state-
ment. Our new battery technology is
designed to take advantage of this tem-
perature gradient at the industrial scale.
Plus, this technology has the additional
advantage of using low-cost, abundant
materials and manufacturing processes
that are already widely used in the bat-
tery industry.
Asia to remain dominant
force in chemical
production
Global spending on chemical produc-
tion capacity additions will peak in 2014
at $120 billion and then begin to decline,
according to analysis from IHS. Asia, and
China in particular, long the epicenter
of global chemical supply and demand,
will remain the dominant global force for
chemicals beyond 2020. However, Asia
will feel the pinch as some capacity ad-
ditions shift to North America and the
Middle East, where feedstocks are less
costlythanks, in part, to unconven-
tional shale energy.
Our analysis shows that global spend-
ing on capacity additions will peak in 2014
and then begin to decline, said Russell
Heinen, director of technology and analyt-
ics at IHS Chemical. Since spending pre-
cedes capacity additions coming onstream,
spending starts to decline prior to the drop
in capacity additions. As for Northeast
Asia, and especially China, they are still gi-
ants in terms of chemical production and
demand, and will continue to account for
a significant share of future global capac-
ity additions. However, the rate of capacity
additions in the region will decline.
Asian producers are starting to feel
the effects of an economy that is grow-
ing more slowly, but also the impacts of
the feedstock cost advantages that their
competitors enjoy in the Middle East and
in North America. In response, Chinese
chemical producers are adding coal-based
capacity to take advantage of the one low-
cost feedstock they have.
During the last decade, chemical capac-
ity additions on a global basis have largely
been driven by Northeast Asia. Since 2000,
the world has added nearly 1 billion metric
tons of total chemical capacity and North-
east Asia, specifically China, has accounted
for more than 70% of this increase, which
was driven by the rapid economic growth
in China. However, this trend is chang-
ingand overall chemical capacity addi-
tions will peak in Northeast Asia in 2014.
Capacity additions in North America,
which had been very minimal for the
last 20 years, Heinen said, are increasing
due to the change in feedstock position
caused by unconventional development.
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c
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n
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1
:
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News
16
We currently expect capacity addi-
tions in the US to peak at more than 15
million (MM) metric tons in 2017, ac-
counting for about 20% of the worlds ad-
ditions, he said.
Despite a reduction in spending on
new capacity, Chinas contributions to
global production will continue to im-
press. IHS Chemical estimates that, dur-
ing the period 2000 to 2020, China will
grow its basic chemicals capacity pro-
duction (which includes benzene, chlo-
rine, methanol, propylene and ethanol)
by nearly 170 MM metric tons. In other
words, China will add 47% of the esti-
mated global total additions expected
for basic chemical production during the
period. The two next largest producing
countries for expected capacity additions
in basic chemicals during the same period
are Saudi Arabia, at 7% additions, fol-
lowed by the US at 6%.
From 2013 to 2018, China is going to
add 9 MM metric tons of domestic poly-
ethylene capacity alone, which is signifi-
cant, said Nick Vafiadis, senior director,
global olefins and plastics at IHS Chemical.
Equally significant is the fact that much of
this new production capacity will be quite
competitive on a cash-cost basis due to ad-
vances in coal-to-olefins technologies.
Iraqi Kurdistan exports
first crude cargo
via Turkey
Several weeks before the ISIS terrorist
army began its chaotic and deadly incur-
sion into Iraq from war-torn Syria, Iraqi
Kurdistan exported its first cargo of crude
oil through Turkeys Mediterranean port
of Ceyhan. This was despite a long-stand-
ing dispute with Baghdad over the shar-
ing of oil revenues. Reuters reported that
the first 1 million-barrel cargo of piped oil
was loaded in Ceyhan, where around 2.5
million barrels of Iraqi Kurdish crude has
been stored. The sale was carried out by
the Kurdistan Regional Government.
Baghdads central government claims
the sole authority to manage and sell Iraqi
oil. Months of talks between the semi-au-
tonomous enclave and the central govern-
ment have made little progress.
Iraqi Kurdistan sent the oil into storage
tanks at Ceyhan through a new pipeline
in which crude flow started last Decem-
ber. The Turkish government had been
waiting for Baghdads approval before al-
lowing the independent oil exports. But
Turkey felt it had allowed enough time for
diplomacy and that there was little point
in delaying further.
US EPA advisory
committee suggests
tightened ozone
standards
The US Environmental Protection
Agencys (EPAs) Clean Air Scientific Ad-
visory Committee (CASAC) has decided
that the agency should tighten its ozone
national ambient air quality standard
(NAAQS) from 75 parts per billion (ppb)
to a range between 60 ppb and 70 ppb. The
CASAC also agreed to suggest to the EPA
that a range of 60 ppb to 65 ppb is prefer-
able. The overall 60-ppb to 70-ppb range
for the primary helth-based standard is
similar to the range that CASAC support-
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News
19
ed in 2008, when the Ozone NAAQS was
last revised. Several environmental and
health groups are urging the EPA to set a
standard no higher than 60 ppb.
Bakken crude properties
are similar to other types
of light oil
The American Fuel & Petrochemical
Manufacturers (AFPM) has released find-
ings from a new report that examines the
characteristics of Bakken crude oil and
the standards required to transport by rail.
The report results demonstrate that Bak-
ken crude is well within the safety stan-
dards for current rail car designs. More
specifically, Bakken crude is comparable to
other light crudes and does not pose risks
that are significantly different than other
crudes or flammable liquids authorized
for rail transport. In particular, Bakken
crudes are well within the regulatory limits
for pressure, flashpoint, boiling point and
corrosivity for use in US Department of
Transportation (DOT) approved railcars.
The data clearly show that the current
classification of Bakken crude oil is accu-
rate and appropriate. Bakken crude oil is
designated as a flammable liquid under the
Hazardous Materials Regulations (HMR)
and, as such, is subject to evaluation of its
flashpoint and initial boiling point for clas-
sification purposes. While Bakken crude
and other light crudes may contain higher
amounts of dissolved flammable gases
compared to some heavy crude oils, the
percentage of dissolved gases would not
cause Bakken crude to be transported un-
der a DOT hazard class other than Class 3
Flammable Liquid. Therefore, the report
says there is no need to create a new DOT
classification for crude oil transportation.
The maximum vapor pressure ob-
served, based on data collected, was 61%
below the vapor pressure threshold limit
for liquids under the HMR, demonstrat-
ing that Bakken crude oil is properly clas-
sified as a flammable liquid. Further, the
highest reported value was more than 90%
below the maximum pressure that DOT-
111 rail cars were built to withstand.
The US is very fortunate to be expe-
riencing an increase in domestic energy
production and, as a result, more crude
oil is being shipped by rail, said AFPM
President Charles T. Drevna. Although,
the transportation of crude oil by rail is
extremely safe, we strive to make con-
tinuous improvements and work toward a
zero incident rate.
The report is based on a survey of
AFPM members conducted in response
to information requested by the DOT. In a
letter to Cynthia Quarterman, administra-
tor of DOTs Pipeline and Hazardous Ma-
terials Safety Administration (PHMSA)
sent in late February, AFPM confirmed
that the process was underway to obtain
the data necessary to inform future regu-
latory actions. AFPM members were sur-
veyed to determine whether Bakken crude
oil poses substantially different transpor-
tation risks compared to other crude oils
transported by rail. In addressing concerns
raised by the DOT, data was collected
stemming from an analysis of approxi-
mately 1,400 samples of Bakken crude oil.
Rail safety is a shared responsibility
and AFPM is committed to doing our
part, said Mr. Drevna.
From: Plant Manager
Sent: Tuesday, May 13, 2014
To: Process Engineer
Subject: Constant process trips
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Industry Metrics
HP STAFF
[email protected]
Global energy markets are reaching a new equilibrium, according to
Wood Mackenzie analysts. As demand shifts to the East, it will expand
to extraordinary proportions. However, the world finds itself in an era of
robust energy supplies. A shift from volume to value is rebalancing the
energy market to a supply-push condition as demand softens. New
non-OPEC supplies are contributing to the situation. After the mid-June
2014 meeting, OPEC countries announced that the nations will keep the
target production at 30 million bpd for another six months.
0
10
20
30
40
50
60
70
80
0
1
2
3
4
5
6
7
Monthly price (Henry Hub)
12-month price avg.
Production
A M F J D N O S A J J M A M F J D N O S A J J M A
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M
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2012 2013 2014
Production equals U.S. marketed production, wet gas. Source: EIA.
Monthly price (Henry Hub)
12-month price avg.
Production
US gas production (Bcfd) and prices ($/Mcf)
45
60
75
90
105
120
135
Dubai Fateh
W. Texas Inter.
Brent Blend
A M F J D N O S A J J M A M F J D N O S A J J M A
2013 2014 2012
Source: DOE
O
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Selected world oil prices, $/bbl
Global refining margins, 20132014
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Arab Heavy, US Gulf
Brent, Rotterdam
Dubai, Singapore
LLS, US Gulf
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Prem. gasoline unl. 93
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Gasoil/diesel, 0.05% S
Fuel oil, 1% S
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Rotterdam cracking spread vs. Dubai, 20132014
*
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World consumption
World production
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Source: EIA Short-Term Energy Outlook, June 2014.
Forecast
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* Material published permission of the OPEC Secretariat; copyright 2014;
all rights reserved; OPEC Monthly Oil Market Report, June 2014.
Brent Dated vs. sour crudes
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2014 Schneider Electric, All Rights Reserved. Schneider Electric, SimSci and SimSci APC 2014 are owned by Schneider Electric, or its affiliated companies in the U.S. and other countries.
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Reliability
HEINZ P. BLOCH, RELIABILITY/EQUIPMENT EDITOR
[email protected]
Things to know and do before starting new initiatives
HP editors frequently attend techni-
cal conferences to keep informed on the
many factors impacting the hydrocarbon
processing industry (HPI). The focus of
these conferences often differs. However,
one particular conference on failure analy-
sis stands out. No exhibitors were present
at the event; the majority of the presenters
were users or beneficiaries of best-of-class
(BOC) root-cause failure analysis meth-
ods. The core of the program concentrat-
ed on two or three best root-cause failure
analysis methods available.
Accidents remain an issue. The HPI
still struggles with accidents according to
a Chemical Safety Board (CSB) statistic.
In the report, the CSB noted the consid-
erable frequency of significant and deadly
incidents at refineries over the last decade.
In 2012 alone, the CSB tracked 125 signifi-
cant incidents at US petroleum refineries.
1

These are disappointing findings. One
solution is encouraging HPI management
to invest more in training budgets such
as technical conferences and workshops.
Failure avoidance and safety are insepara-
ble. The mix is a key ingredient to respon-
sibly achieving and sustaining profitability.
Continuing education. HP editors also
attend reliability-focused forums. These
conferences offer different programs. A
recent conference incorporated about 80
vendor-exhibitors. A high percentage of the
event presentations were closely associated
with the exhibitors. Impressive products
on view included compact accelerometers
and underwater velocity sensors. These
and other components have migrated from
the aerospace industry to the process and
manufacturing industries. Much of this
technology transfer will benefit the HPI.
More importantly, there are an impressive
number of new companies and consultan-
cies now entering the reliability field.
Terminology. Exhibitors often use at-
tention-getting terms in their quest to
attract clients. The old lean and mean
mantra has run its course. A number of
exhibitors now select company names
or designations that promise optimiza-
tion, detection, compliance, man-
agement, reliability ecosystems, auto-
mated and so forth. There is a market for
collective, as well as detailed reliability-
focused, programs.
Vendors want to sell new initiatives
that are really older products or programs
with updated names. Using an admittedly
sweeping generalization, we characterize
these companies as upbeat purveyors of
implementation strategies for unrealisti-
cally optimistic clients. Both purveyors
and clients obviously desire low-budget
fixes for persistent problems. But to the ex-
perienced and informed, the clients prob-
lems are often very deeply rooted in past
indifference and neglectwhich begs the
question: Who will do the uprooting?
An observation. Some conferences give
much visibility to newly formed consul-
tancies. These companies offer expertise
in operational excellence (OE), a close
cousin to asset management. There is
nothing wrong with parties seeking, and
offering, such visibility. Yet, the existing
and potential OE consumer-clients will
make progress only if they finally start
to address the more fundamental issues.
These companies should implement well-
focused efforts to learn and become more
fully informed.
The word learning prompts another
key point on OEbe fully aware of your
conditions that will shape the final outcome.
There are a few solid prerequisites to de-
veloping meaningful and sustainable OE
programs. Prerequisites to successful ini-
tiatives and pursuits are never optional;
they are unalterable and non-negotiable
requirements. These prerequisite require-
ments involve hiring, grooming, em-
powering, compensating, retaining and
rewarding the right people. The men and
women who will move entire facilities
from being average to becoming BOC
performers have to be ethical, competent
and highly motivated. Such employees
and their managers must make important
contributions before either project content
or monetary appropriations are finalized.
These employees will ensure that the proj-
ects include safety and reliability and are
solidly based on the cost of reliable equip-
ment, and not just on the lowest initial bid.
In other words, the cost-estimating manu-
als at the core of such projects must reflect
pricing for a reliable plantespecially reli-
able machinery.
A realistic project budget estimate
must also include the cost of machinery
quality assessments (MQAs).
2
Remem-
ber: You get what you inspect, not what
you expect. Implementing and conduct-
ing MQAs will typically require a 5% ad-
dition to the as-purchased cost for reliable
machines. This incremental outlay will
often be retrieved within a year.
Initiative success. When examining
reliability improvement and failure avoid-
ance needs for an HPI facility, lets be sure
of one fact: The next initiativeby any
name or acronymcan be successful
only if and when the stated prerequisites
are in place. These prerequisites involve
intelligent hiring, nurturing, empowering,
compensating, retaining and rewarding
the right people. The managers authoriz-
ing the prerequisites mentioned above
must give guidance by demonstrating per-
sonal ethics, competence and persistently
high motivation.
Every one of these commendable at-
tributes is required from the top to bot-
tom layers for a successful organization.
Because people with these attributes
cannot be acquired or trained on short
notice, each prerequisite is a highly tan-
gible long-range action step. Companies
and management must stop looking for
the magic bullet, and organizations
must cultivate a new environment for OE
and reliability. Unfortunately, there will
Reliability
24
still be those managers who still seek out
a magic bullet solution. In truth, there
really is no cheap implementation route.
There are no effective, yet previously un-
known, quick-fix initiatives.
Back to basics. To achieve effective re-
sults, HPI companies must use only the
best available investigation and root-cause
failure analysis (RCFA) processes. No one
single RCFA process suits all situations.
Organizations must discover and report
the root causes of failures, whether they
are equipment or process related. Once
uncovered, do not rest until the sources of
these root causes are eliminated. Modify
the management strategy and steer train-
ing dollars to the right direction.
Hard look. This editorial is critical of how
certain issues are now addressed by HPI
companies. The purpose is not to gloss
over misdirected efforts, especially when
addressing safety. Caution is warranted. To
always seek salvation in new initiatives will
have a price in wasted time and money.
Irrespective of names, designations and
code letters, any initiative whatsoever will
succeed only if it is tightly interwoven with
highly motivated and competent employ-
ees. Because these men and women are
the prerequisites to success, our industry
must continue sending young engineers to
technical conferences that teach both inci-
dent investigation and incident avoidance.
Advice for event organizers. Finally,
an important suggestion to organizers of
reliability-focused conferences: When
selecting motivational speakers, pick the
ones who can lay out the full story. At two
recent conferences, the keynote speakers
spoke about our shrinking world and the
marvels of building the latest-generation
passenger plane. The speakers reminded
their respective audiences that suppliers
from 17 nations around the globe provid-
ed major components and subassemblies
for the new plane. Glitches with onboard
batteries were solved in less than one year
by competent contributors stepping up to
whiteboards and doing sketches for ease
of visualization. Yes, but, some of us
mumbled; it is also known that the new-
generation passenger plane experienced
years of delivery delays. Neither that fact
nor its underlying causes were mentioned,
and, more importantly, learning opportu-
nities were missed at these conferences.
Most conference attendees want to hear
the full story and nothing less will do.
LITERATURE CITED
1
Investigation shines new light on fatal 2010 Tesoro
refinery explosion, Hydrocarbon Processing, March
2014, pp. 1214.
2
Bloch, H. P. and F. K. Geitner, Compressors: How to
achieve high reliability and availability, McGraw-Hill
Publishing, New York, New York, 2012.
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SEPARATION SYSTEMS
HEINZ P. BLOCH is the
Reliability/Equipment
editor of HP. He has
authored 18 textbooks and
over 570 papers or articles
and was a senior
engineering associate for
Exxon Chemicals. He is in
his 52nd year as a reliability
professional, and continues
to advise process plants
worldwide on reliability
improvement, failure avoidance and maintenance cost
reduction opportunities. He holds BS and MS degrees
from the New Jersey Institute of Technology.
Sulzer Chemtech
Legal Notice: The information contained in this publication is believed to be accurate and reliable, but is not to be construed as implying any warranty or guarantee
of performance. Sulzer Chemtech waives any liability and indemnity for effects resulting from its application.
Tower Technical Bulletin
Troubleshooting Distillation Columns Part 1: The Basics
Background
Properly designed and operated distillation columns can
provide long-term, trouble-free service. However, mechanical
failure, process upsets, and other factors can occur, preventing
the distillation system from achieving the expected design
performance.
Taking a tower off-line is time consuming and expensive; before
doing so it is important to have a good idea of what is causing
the problem. A systematic study of the column should be made
(often with the assistance of the column equipment provider).
After careful study, a tower inspection should be performed
to conrm the cause of the problem and to determine and/
or provide a proper solution. In emergency cases, expected
replacement equipment may need to be on site prior to the
column opening.
Understanding Mass Transfer Fundamentals Is Critical
Knowledge of the column thermodynamic and hydraulic
functions is the key starting point. Any problem that develops
that does not allow the vapor and liquid to contact each other
in the manner for which the device was designed, or keeps the
vapor and liquid from separating after contact, will adversely
affect column performance. For example, the packing shown
below will not provide good ow or vapor/liquid contacting
efciency because some of the packing is blocked off by fouling.
Working Toward A Solution
The simple checks should be made rst. Check the instrumentation
to ensure that ows, levels, temperatures, and pressures are
correct. Check to make sure that feed compositions and analyses
are correct. Conduct a single gauge pressure survey and a
temperature survey as possible. Perform a mass balance across
the columna closure of 3-5% is normally considered acceptable.
Once you have this information, review the information with plant
engineering and operations. Consult with your equipment vendor
to further investigate the problem. Decide on the feasibility of a
column gamma scan. If practical, schedule a tower inspection at
the rst opportunity in order to personally examine the internals.
In the meantime, the problem may be temporarily alleviated by
reducing rates, changing the reux and reboiler duties, changing
the feed location, and increasing or decreasing the tower pressure.
Where To Start
Ask yourself the following questions:
What specifcations are not being met? What could
happen internally to create this issue?
ls this a capacity problem? Has the column ever run
successfully at these rates? lf not, the internals may be at
their capacity limit.
Have there been any upset conditions that may have
damage internals?
Sulzer Chemtech, USA, Inc.
8505 E. North Belt Drive | Humble, TX 77396
Phone: (281) 604-4100 | Fax: (281) 540-2777
Email: [email protected]
www.sulzer.com
The Sulzer Applications Group
Sulzer Chemtech has over 150 years of in-house
operating and design experience in process applications.
We understand your process and your economic drivers.
Sulzer has the know-how and the technology to design
internals with reliable, high performance.
Hydraulic Evaluation
Symptoms of hydraulic ooding include excessive or
erratic pressure drop, reduced bottoms ow, reduced
column temperature prole, and excessive liquid
carryover. Conversely, low pressure drop is an indication
of missing trays or packing.
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Automation
Strategies
SAL SPADA
ARC Advisory Group, Dedham, Massachusetts
HPI demands higher availability of rotating equipment
The performance and uptime of heavy rotating equipment
play an important role in business profitability in a wide range
of industries, including upstream and midstream gas processing
and downstream refining and petrochemical processing.
In the North American chemical industry, the shale gas boom
has been a windfall opportunity as large manufacturers shift from
producing ethylene from oil to ethylene from lower-cost meth-
ane and natural gas. The cracked gas compressor, at the heart of
these operations, must often deal with multiple feedstocks and is
subject to fouling from contaminants. If the compressor should
go down, lost production in these types of operations is estimat-
ed to cost about $1 million/day.
Closing the gap. Compressors, pumps, and fans used in these
and other heavy process industries are often custom-engineered
systems. Since each component is often sourced from a different
vendor, engineers produce systems that are delivered with a wide
range of availability guarantees for the different components.
Unfortunately, these dont always meet the demanding uptime
guarantee (with minimum 24-hr advance notice of an event)
sought by most end users. To close this performance gap, ma-
chine builders need to consider incorporating more advanced
condition monitoring, predictive maintenance, and improved
equipment designs into their rotating machinery systems.
Engineering firms face challenges throughout every facet of
design when developing heavy rotating equipment. Require-
ments for the most critical design elements: AC drive, motor,
mechanical drive and coupling are all interrelated, yet, with very
few exceptions, the mechanical drives come from different sup-
pliers than do the electrical motors and AC drives.
In an interview with a large, global chemical manufacturer,
ARC Advisory Group learned that the manufacturers internal
organization has developed advanced algorithms intended to
drive equipment as close to the edge of performance as possi-
ble, while still protecting equipment and people. This multi-lay-
ered strategy integrates equipment protection algorithms, adap-
tive control algorithms and predictive condition monitoring.
The equipment protection algorithms increase resilience to
false trips, allowing equipment to stay operational for much lon-
ger periods of time. The adaptive control algorithms, which are
generally developed for individual pieces of equipment, operate
in real time to dynamically modify the control parameters based
on the current operating conditions. The predictive condition
monitoring systems used in conjunction with real-time control
algorithms provide predictive maintenance information.
Machinery providers face problems. Based on our inter-
views with several original equipment manufacturers equipment
producers, there appears to be a measurable gap between the
capabilities they can integrate and what leading manufacturers
seek. This creates a productivity and performance gap.
Failure analysis and predictive maintenance solutions are
generally limited to information from a single sensor. The solu-
tions rarely correlate information from multiple sensors. Further,
many equipment vendors dont appear to understand the full
potential of the equipment. Most employ off-the-shelf program-
mable logic controllers (PLCs) and AC drives (some with em-
bedded PLCs) to control and monitor the machinery.
Intelligence-to-edge devices. The biggest challenge faced
by equipment providers and users alike is the limited process-
ing power provided by the automation embedded in the rotating
equipment. The processing power in most PLCs and AC drives
is not adequate to execute complex algorithms such as pattern
matching, covariance analysis, regression analysis and fast Fou-
rier transforms in real time.
Advanced predictive condition monitoring requires process-
ing of large blocks of sampled stochastic data. Furthermore, to
close the performance gap, sensors need to incorporate more in-
telligence for auto calibration, advanced filtering or stochastic sig-
nal processing to eliminate electrical noise. In some cases, sensors
need to be interconnected. Vibration, acceleration, pressure, and
temperature sensors often rely upon external signal analysis sys-
tems to perform filtering in noisy environments. This inhibits ma-
chine builders from integrating more advanced sensor solutions.
Sensors. The connected machine will require not just more
sensors, but also more intelligent sensors. Sensors must perform
more sophisticated signal processing at the edge to provide ac-
curate signals that filter out the noise before it gets to the auto-
mation system. Machine builders need to work in partnership
with sensor suppliers to embed more intelligent sensors into
the machinery, and with automation suppliers to embed com-
plex condition monitoring algorithms into automation systems.
Automation suppliers, in turn, must strive to provide solutions
with the prerequisite processing power to run the advanced algo-
rithms and scan rates that are fast enough for demanding rotat-
ing equipment requirements.
SAL SPADA is research director for ARC Advisory
Group. He has over 15 years of direct experience in
motion control system design as a software developer,
project manager and product marketing manager. Mr.
Spada has been with ARC since 1997 and holds a BS
degree and an MS degree in electrical engineering from
the University of Massachusetts and an MBA degree
from Babson College.
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Project
Management
WILLIAM BADGER, PROFESSOR EMERITUS
Del E. Webb School of Construction, Arizona State University
What skills will project managers need
in the next decade?Part 1
The next decade could well be that of
the project manager (PM), who is at the
core individual of every successful project.
It is the PMs competence and professional-
ism on which the construction industrys
professional identity and reputation rests.
To investigate these competencies, the
Construction Industry Institute (CII)
launched a research team, RT 281: Proj-
ect Management Skills of the Future, to de-
termine what PM skills will be needed in
the next 10 years. The teams target was to
predict the skills and competencies that
will underlie the success of a PM in an in-
creasingly global marketplace beginning
in 2022. The research identified new and
expanded competencies. The researchers
created a list of skills for PMs to benchmark
themselves against, and a guide of available
tools to acquire these new skills and to im-
prove those that they already possess.
Evolving skill set. Just as the construction
industry is experiencing rapid changes, the
role and character of the PM is equally in
a transition phase. Over the next 10 years,
the PM role will both evolve and broad-
enwith new and more responsibilities.
The PM will continue to oversee and direct
the engineering, procurement and con-
struction of capital projects. However, the
PM will also evolve into a leader with well-
developed communications and listening
skills that create and nurture the all-impor-
tant relationships and will motivate, engage
and develop others. The research indicates
that the PMs of the future will interface
with twice as many stakeholders and, con-
sequently, they will require vastly improved
leadership, people, and thinking skills.
New trends in project management.
One important finding was the realization
that there are four disruptive trends on
the horizon, as outlined in TABLE 1. Future
PM competencies will fall into four key
areas with 14 total competencies.
Next month. Part 2 outlines needed com-
petencies for global projects.
TABLE 1. Four disruptive trends in the project management business
Trends forecast Challenges for PMs
Workforce
demographics
Skilled workforce shortages at all levels Workforce diversity, dynamics and styles
Knowledge and experience gaps Multi-gender, multi-cultural, multi-generational,
multi-lingual project teams
More dispersed workforce
More diverse workforce
Globalization Global population growth exceeding available resources
and straining existing infrastructures
Projects in areas with dif cult conditions
Disappearing commercial barriers among nations Safety issues and training beyond traditional areas
Transfer of wealth between nations Price/schedule/resource pressure means more competitiveness
Continued focus on security and global terrorism Global supply chains
Technology Smart machines/robotics 24/7/365 access from all directions
Radically enhanced communications technology using
audio (e.g., voice activation), visual and social media
Information collected faster than resources can manage
and analyze
Exponential speed of technology innovation Information for decision making will change within minutes
Global, virtual teams
New and changing
organizations
Global knowledge networks replacing subject-matter experts Increase in number of stakeholders with competing agendas
Breakdown of traditional hierarchical organizations Increase in number of non-full-time/contract employees
Organization and project structures well beyond traditional
organizational boundaries
Shifts in risk-sharing models (more joint ventures, etc.)
ACKNOWLEDGMENT
The Construction Industry Institute (CII) is a
unique consortium of more than 130 leading owner,
engineering-contractor and supplier firms from both
the public and private arenas. CIIs website: www.con-
struction-institute.org. Kim Allen, CII associate director
of knowledge management is a coauthor for this article.
DR. WILLIAM W. BADGER retired as Professor Emeritus
at Arizona State University. For 18 years, he was the
director of the Del E. Webb School of Construction.
DR. AVI WIEZEL is the dean of facilities and a professor
at Arizona State University. His prior positions include
chairman of the Del E. Webb School of Construction
and the director of graduate studies in construction.
Why Does the LNG Industry
Insist on Zeeco?
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expand, or retrot a plant, safety and emissions are their top priorities.
Thats why they call Zeeco. We engineer the advanced thermal oxidizers
and ares that keep them in compliance, keep their people safe, and keep
plants simply running smoother.
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Global
RINA QUIJADA
Senior DirectorLatin America, IHS Chemical Insight
The reshaping of Latin Americas
petrochemical industry
Latin American economies continue to grow. FIG. 1 shows
the gross domestic product (GDP) growth rates from 2010
through 2018 for this region. Brazil accounts for 35% of the to-
tal GDP growth. For the purposes of this article, Mexico, Cen-
tral America, South America and the Caribbean are included in
Latin America.
Demand for products increases. Continued economic
growth, while slower, will foster demand for finished goods and
services. Only one (Etileno XXI in Mexico) significant grass-
roots project in the region is planned through 2018. From Mex-
ico to Patagonia, several issues are common to all countries:
Economic growth, while widely varied, moves forward.
There is slow but steady GDP performance.
Only one large, grassroots expansion is planned from
20142018.
The region is reevaluating capacity expansions in light of
new, low-cost feedstock access to North America.
The lack of hard currency throughout the region incurs
high risk for importation.
Long-overdue capital expenditure investment aimed
at infrastructure is quite necessary.
Limited access to low-cost feedstock is a hindrance
to expansion for producers.
Demand for finished goods will continue to grow and will
be supplied by local production and imports. The region is a
large, and now strategic, market for producers in North Amer-
ica, Asia and Europe. Future exports of surplus resins from
20152018 make Latin America an increasingly attractive op-
tion for investors.
Money issues. However, due to limited access to hard cur-
rency, many countries in this region are strapped for effective
liquidity, and they lack the flexibility needed to trade and remain
5.8
4.1
2.7
2.5
2.3
3.2
3.7
4.0
3.9
4.3
3.1
2.6
2.5
3.0
3.5
3.8 3.8 3.8
0.0
2.5
5.0
7.5
2010 2011 2012 2013 2014 2015 2016 2017 2018
R
e
a
l

G
D
P

a
n
n
u
a
l

g
r
o
w
t
h
,

%

Latin America
World
Source: IHS
FIG. 1. Latin America GDP performance vs. global, 20102018.
TABLE 1. Latin America petrochemical capacity changes
Country Product Capacity change, thousand tpy Company Location Year
Colombia PVC 100 Mexichem Cartagena 2014
Mexico Ethylene 1,050 Braskem IDESA Veracruz 2015
LDPE 300 Braskem IDESA Veracruz 2015
HDPE 750 Braskem IDESA Veracruz 2015
Chlor-alkali 60 Cydsa Nuevo Len 2015
Venezuela Ammonia 600 Pequiven Morn 2014
Urea 750 Pequiven Morn 2014
Brazil PTA 700 Petroquimica Suape Pernambuco 2013
PET 450 Petroquimica Suape Pernambuco 2014
PVC 200 Braskem Alagoas 2012
Ammonia 750 Petrobras Mato Grosso do Sul 2015
Urea 1,200 Petrobras Mato Grosso do Sul 2015
Acrylic acid 160 BASF Bahia 2015
SAP 30 BASF Bahia 2015
Bolivia Ammonia 430 YPBF Cochabamba 2016
Urea 750 YPBF Cochabamba 2016
Global
competitive in a global environment. This translates into high-
risk imports because exchange rates can change at any point of
the process, as players submit purchase orders and arrange de-
livery of products. Geographic proximity becomes a top priority
when trading with Latin America. In essence, this is the added
advantage for North American producers in a global context.
With only a few production capacity expansions announced
in the region, imports will be needed to meet increased do-
mestic demand for end-use products. TABLE 1 summarizes the
significant production capacity expansions announced in Latin
America through 2018.
Influence from the north. The ongoing energy revolution in
North America has prompted a reevaluation of planned capacity
expansions in Latin America. Consequently, this new assessment
is delaying added production decisions for the region. Countries
like Colombia, Brazil and Venezuela are now returning to the
drawing board to determine how they will move forward. At the
core of their analyses will be each nations ability to compete and
take advantage of expected capacity additions in North America
within the context of low-cost, unconventional feedstocks.
New energy policies. The energy reform passed last year in
Mexico is the largest transformational development emerging
from the nation in decades. It has elements like production-
sharing and license contracts to major companies. Several
international investors are eager to scout out the best way to
participate in these new energy projects. The full reach of the
reform will largely be decided by secondary laws, which are
under the approval process. The reality is that industry excite-
ment over Mexicos energy reform is high. However, this pro-
cess will take some time to implement.
In Argentina, we should follow closely developments at
Vaca Muerta. This potential bonanza of large gas reserves
should allow producers to gain access to low-cost feedstocks,
which, in turn, should support capacity expansions for basic
petrochemicals and derivatives in Argentina. However, this is a
medium- to long-term proposition.
Brazil is also reassessing its feedstock availability for new ca-
pacity investments at Comperj. Braskem will assess its options.
However, no new grassroots facilities are expected at this time.
This is also a medium- to long-term project under evaluation.
Looking at 20142018, Latin America represents a strategic
market for consumption, as well as a key strategic ally to pro-
ducers from North America.
HERMETIC-Pumpen GmbH
[email protected] www.hermetic-pumpen.com
Todays Application:
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HERMETIC design features
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Customers technical specication
Capacity: 120 m/h
Head: 1400 m
Pressure rating: PN 100
Motor power: 370 kW
H E R M E T I C A L L Y S E A L E D C E N T R I F U G A L P U M P S
HERMETIC-Pump Type CAMTV 52/6+6
DR. RINA QUIJADA has 30 years of industry
experience and now serves as the senior directorLatin
America, IHS Chemical Insight. Prior to joining IHS,
Dr. Quijada founded, and was the CEO of, Intellichem,
Inc. Preceding Intellichem, she was a partner at CMAI.
Dr. Quijadas career began in 1983 at PDVSA/Pequiven,
where she held managerial positions at the production,
commercial and corporate planning levels. Dr. Quijada
holds a PhD in economics and an MA degree in
international management.
Copyright 2013 Merichem Company
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Petrochemicals
BEN DUBOSE, ONLINE EDITOR
[email protected]
Major US players bet on propane dehydrogenation
Much has been written about the impact of newfound
supplies from the US shale boom on the nations ethylene
industry, culminating in plans for several new ethane crack-
ers. However, a similar trend for olefins producers is also oc-
curring on the propylene side, using shale-derived propane
as feedstock.
As of today, seven projects have been proposed in the
field of propane dehydrogenation (PDH), which converts
propane into propylene and byproduct hydrogen. But, at the
moment, only one such plant is actually operating in the US.
That one is the PetroLogistics facility near Houston, which
started operations in 2010 and has a propylene production
capacity of 1.45 billion lb/year (658,000 tpy). The plant is
one of the largest of its kind in the world.
Flint Hills moves to acquire PetroLogistics. So does
this trend have staying power? Flint Hills Resources, a major
US-based refining and petrochemicals producer and a part
of Koch Industries, is betting that it doesas evidenced by
their $2.1 billion agreement announced in early June to ac-
quire PetroLogistics.
PetroLogistics unique capabilities will help us expand
our existing chemical and refining business, Flint Hills said
in a statement. There are also pipeline and supply synergies
that will help us create additional value for our customers.
We will continue to serve the customers of the business but
will look for synergies with our existing business in the future
where it makes sense.
One such synergy could come with the existing Flint Hills
polypropylene (PP) business, which includes plants in Texas
and Michigan and could use the new propylene supply as a
raw material in its production process.
Propylene trading is another possibility. But another
plausible scenario comes in the form of propylene trading.
The PetroLogistics plant, located on the Houston Ship Chan-
nel (FIG. 1), has strong pipeline interconnections between the
plant site and storage facilities in nearby Mont Belvieu. From
there, the propylene could be transported almost anywhere
through existing infrastructure.
And with none of the other seven plants expected to
launch production until the second half of this decade, the
US propylene market is likely to be tight for the immediate
future. That gives Flint Hills, assuming the successful com-
pletion of its planned PetroLogistics acquisition, a head start
on the market. While most of the PetroLogistics propylene
supply is presently under contract, the first major contract
ends in December of this year, giving Flint Hills plenty of op-
tions and flexibility.
New hydrogen supply from PDH could benefit US
refiners. Another byproduct of the PDH trend is a new source
of hydrogen for US refiners, who could then use it to help meet
stricter sulfur regulations. The nations recently-adopted Tier 3
gasoline standards intend to reduce sulfur levels to 10 parts per
million (ppm) from 30 ppm. To accomplish that drop, refiners
are expected to need an additional 100-to-200 million cubic
feet/day of hydrogen, according to Daniel Yankowski, presi-
dent of Praxairs global hydrogen business.
Already, PetroLogistics is providing Praxair with 93% of
hydrogen produced at its Houston plant. And both Praxair
and Air Products, two of the major hydrogen providers within
the US, are prepared with existing pipeline infrastructure to
transport hydrogen to facilities throughout the US Gulf Coast.
Work remains to be done. The deal for PetroLogistics is
not yet complete. Other prospective buyers have until July 6
to file a competing offer, and between that period, customary
closing conditions and regulatory approvals, Flint Hills says it
does not expect to complete the deal until late 2014.
But the agreed-to terms would make the acquisition the
largest in Flint Hills history, reflecting the confidence that
the company has in both the PetroLogistics plant and the role
of propane dehydrogenation going forward in the US petro-
chemical marketplace.
PetroLogistics built this facility from the ground up, and
it is a world-class operation, said Brad Razook, CEO of Flint
Hills Resources. Its capabilities are well aligned with our ex-
isting chemical and refining business. We look forward to wel-
coming PetroLogistics employees to Flint Hills Resources as
we work together to build on their success.
FIG. 1. The PetroLogistics PDH plant near the Houston Ship Channel
first started commercial operations in 2010.
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Gas Processing
ADRIENNE BLUME, MANAGING EDITOR
[email protected]
Eastern nations look to LNG for energy,
environmental solutions
With a collective total of more than 2.6
billion (B) people, or 37% of the worlds
population, China and India are the two
most populous nations on earth. The
United Nations expects the two coun-
tries to retain these titles through at least
2050, by which time they are estimated to
boast a collective population of approxi-
mately 3 B people.
The two emerging economies are
growing increasingly energy-hungry as
their populations and transport infra-
structures expand. At the same time, Chi-
na and India are seeking to reduce air pol-
lution levels caused by these expansions.
China, in particular, is being pressured to
reduce traffic congestion and smog levels
in its major cities, which are among the
most polluted in the world.
The country hopes to achieve cleaner
air and clearer skies with a combination
of industrial and automotive pollution
cuts, clean coal and alternative fuel initia-
tives, fuel-efficient vehicle use and, most
importantly, greater use of natural gas as
an industrial and vehicle fuel. In the fu-
ture, the use of compressed natural gas
(CNG)-powered trucks and automobiles
will increase in China, and domestic man-
ufacturers are currently developing 100%
methanol-powered trucks. Coal-based
methanol makes up approximately 8% of
the countrys fuel pool.
Likewise, India is one of the worlds
largest natural gas vehicle (NGV) mar-
kets, with a substantial public bus and
taxi fleet in New Delhi operating on CNG
(FIG. 1).
LNG: An Eastern pollution solution?
The import of liquefied natural gas (LNG)
is a ready answer to Chinas and Indias
growing methanol needs and the coun-
tries efforts to curb air pollution. As a
whole, Asia-Pacific is anticipated to sur-
pass Europe as the worlds second-biggest
natural gas market as early as 2016. Dozens
of liquefaction and regasification terminals
are planned or already under construction.
Chinas gas demand is forecast to in-
crease by a substantial 56% between 2014
and 2018, to 294 Bcm. In response to this
rapidly expanding demand, Chinas LNG
imports will rise significantly. Domestic
LNG imports reached 15 million tons per
year (MMtpy) in 2012 and are expected to
double by 2015.
Meanwhile, Indian gas production
meets approximately half of the domestic
requirement. However, demand from gas-
consuming industries, such as power and
fertilizer, is rising steadily. Indian gas de-
mand is forecast to triple by 2017, which
will require increased LNG imports.
Domestic construction ramps up. One
way China and India are working to boost
their LNG use and prepare for increased
LNG flows is through the construction of
domestic liquefaction and regasification
terminals. China has planned more than a
dozen new import terminals for comple-
tion by 2020, and India aims to build more
than a dozen additional LNG import ter-
minals to meet growing demand for natu-
ral gas for electricity and fertilizer.
However, Chinas plans could change
should the country successfully develop
its vast domestic shale gas reserves, which
the US Energy Information Administra-
tion estimated in 2013 to be the largest in
the world at 1.115 trillion cubic feet (Tcf ).
The country has a shale gas production
target for 2015 of 6.5 Bcm.
Meanwhile, India is expanding capac-
ity at its existing LNG terminals and has
several new projects in the works. These
projects include floating LNG (FLNG)
facilities, such as the Kakinada LNG im-
port terminal, and the industrys first
barge-based FLNG regasification unit
offshore Andhra Pradesh.
Among other recent project announce-
ments, Gujarat State Petroleum Corp.
LNG Ltd. will build a new regasification
plant at Mundra in Gujarat state on the
countrys west coast. The terminal will
have a sendout capacity of 5 MMt and is
slated for completion by the end of 2016.
Toyo Engineering will provide engineer-
ing for the project as well as for a 5-MMt-
py expansion project at the Petronet LNG
regasification terminal at Dahej in Guja-
rat. The plant will have a total regasifica-
tion capacity of 15 MMtpy after the proj-
ect is completed in early 2017.
Foreign projects grab investors. China
and India are also investing heavily in
LNG projects in major gas-producing
regions, such as North America and Rus-
sia. Shale gas-advantaged LNG projects in
the US and Canada, and developing LNG
ventures in nearby Russia, are attracting
companies looking to secure long-term
gas supplies.
North American exports. PetroChina
is a stakeholder in the LNG Canada export
project in British Columbia, Canada. The
FIG. 1. A CNG-fueled taxi outside of a
CNG station in New Delhi, India.
Gas Processing
38
joint venture also includes partners Shell
Canada, Korea Gas Corp. and Mitsubishi
Corp. The project will be constructed in
phases, with the first phase having a de-
sign capacity of 12 MMtpy upon startup
in 2019 or 2020. If needed, capacity can be
expanded to 24 MMtpy.
Meanwhile, Chinese oil major Sinopec
recently bought a 15% share of Malaysian
Petronas British Columbian gas reserves
and the planned Pacific NorthWest LNG
export project (FIG. 2). The LNG proj-
ect, with an estimated price tag of C$9 B
to C$11 B, will produce as much as 19.68
MMtpy of LNG for 25 years starting in
2018, according to an application to Can-
adas National Energy Board. The stake
will entitle Sinopec to approximately 1.8
MMtpy of LNG for 20 years. Sinopec also
agreed to buy 3 MMtpy of LNG for 20
years from Petronas, making it one of the
Malaysian state-owned companys largest
buyers of the fuel.
Likewise, Indian Oil Corp. (IOC), In-
dias largest refiner, purchased a 10% stake
in the Petrobras-owned gas fields and the
planned LNG export project. The agree-
ment will give IOC the right to 1.2 MMt-
py of LNG for two decades from 2018.
Following the closing of the IOC and Sin-
opec acquisitions, Petronas will hold 62%
of the integrated project and will continue
to secure markets for LNG.
IOC follows rivals including Oil & Nat-
ural Gas Corp. and GAIL India in securing
energy supplies through overseas acquisi-
tions to meet surging demand at home.
GAIL India has contracted decades worth
of LNG supplies from Russian Gazprom
and various US LNG projects.
In another new development, Chinese
offshore oil and gas producer China Na-
tional Offshore Oil Corp. (CNOOC) is
considering the construction of an LNG
plant and export terminal in western Cana-
da to send the fuel to China. The plant may
be built at Grassy Point near Prince Rupert
in British Columbia. CNOOC, through its
subsidiary Nexen Energy, signed an agree-
ment to access the land with the govern-
ment of British Columbia. CNOOC oper-
ates LNG facilities in China at Guangdong,
Shanghai, Fujian, Zhuhai and Ningbo, with
plans to build more to feed Chinas increas-
ing appetite for natural gas.
Russian developments. Meanwhile,
Chinese banks may boost funding for
Novateks $27-B Yamal LNG venture in
Russia to export LNG from Russias Arc-
tic region if European banks pull out over
the crisis in Ukraine, project partner Total
said. There is a risk of a project delay, due
for commercial operation in 2017, if the
political situation worsens. Total and No-
vatek reached a final investment decision
on Yamal LNG in December 2013, with
the Russian company taking 60% of the
venture to produce 16.5 MMtpy of LNG,
and with Total and China National Petro-
leum Corp. each holding 20%.
FIG. 2. An artists rendering of the proposed
Pacific NorthWest LNG facility on Lelu Island
near Port Edward, British Columbia, Canada.
Image courtesy of Pacific NorthWest LNG.
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Boxscore Construction
Analysis
LEE NICHOLS, DIRECTOR, DATA DIVISION
[email protected]
South AfricaAfricas clean fuels leader?
Around the world, legislation mandating decreased emis-
sions and lower levels of airborne pollutants is coming into ef-
fect. In response, refiners are implementing operational and pro-
cessing changes to reduce sulfur levels in transportation fuels.
Notable clean fuels projects are already being constructed
in Saudi Arabia and Kuwait. To comply with mandatory sulfur
specifications for gasoline and diesel between 2013 and 2016,
Saudi Arabia plans to spend billions of dollars to construct
multiple clean fuels projects. Saudi Arabia is seeking to reduce
sulfur content in diesel and gasoline to 10 parts per million
(ppm), and to lower benzene content in gasoline to 1%.
Kuwait National Petroleum Co. (KNPC) is investing $31
billion (B) in projects to modernize the countrys Mina Abdul-
lah and Mina Al-Ahmadi refineries, as well as to construct the
regions largest refinery, the Al-Zour plant. The Clean Fuels
Project and the New Refinery Project are ambitious plans to
overhaul Kuwaits refining sector.
South Africa is also implementing its own clean fuels pro-
gram. South African Petroleum Refineries (Sapref ), a joint
venture (JV) between Shell SA Refining and BP Southern
Africa, and National Petroleum Refiners of South Africa (Na-
tref ), a JV between Sasol and Total, are each planning their
own clean fuels projects. Sapref s Clean Fuels 2 and Natref s
Clean Fuels 2 projects will help improve the quality of trans-
portation fuels by reducing levels of sulfur, benzene and aro-
matics, thereby meeting enhanced legislative requirements for
cleaner-burning transportation fuels.
To develop clean fuels, and to prevent a fuel shortage, South
Africas national oil company, Petroleum Oil and Gas Corp. of
South Africa (PetroSA), along with partner Sinopec, plan to
construct one of Africas largest refineries. Project Mthombo
is a $10-B, 300-thousand-barrel-per-day (Mbpd) refinery that
will be constructed near Port Elizabeth. Project Mthombo,
along with Natref s and Sapref s Clean Fuels 2 projects, have
the ability to ensure that South Africa modernizes its refining
industry to reach international transportation fuel standards.
These initiatives have the ability to make South Africa the
continents new clean fuels leader.
Refining operations. South Africa has the third-largest refining
capacity in Africa, surpassed only by Algeria and Egypt. About
95% of South Africas crude oil requirements are met by imports
from the Middle East and Africa. Major domestic refining opera-
tions are located at four refineries (FIG. 1). These include Sapref
and Enref (Engen Petroleum), both located in Durban; Chevref
(Caltex Oil SA/Chevron), located in Cape Town; and Natref, lo-
cated in Sasolburg. Total domestic refining capacity is 485 Mbpd
(TABLE 1). With the addition of Project Mthombo, domestic re-
fining capacity could climb to nearly 800 Mbpd.
South Africa also produces synthetic fuels from low-grade
coal and natural gas, using coal-to-liquids (CTL) and gas-to-
liquids (GTL) technologies. Sasols Secunda CTL plant con-
sists of two production units. The Secunda CTL plant pro-
duces 160 Mbpd of liquid fuels, making it one of the largest
CTL plants in the world.
Sasol also operates the Mossel Bay GTL plant. The GTL
plant utilizes Fischer-Tropsch technology to produce 45 Mbpd
of synthetic liquid fuels, of which more than half is gasoline.
Namibia
Botswana
Swaziland
Lesotho
Durban
Pretoria
Pietersburg
Kimberley
Port Elizabeth
Operating reneries
Proposed renery
Cape Town
Atlantic Ocean
Indian Ocean
Johannesburg
South Africa
FIG. 1. Operating and proposed South African refineries.
TABLE 1. South Africas rening operations
Renery Company Location Capacity, bpd
Chevref Caltex Oil SA (Chevron) Cape Town 110,000
Enref Engen Petroleum Durban 118,000
Natref Sasol-Total JV Sasolburg 88,000
Sapref BP-Shell JV Durban 169,000
Mthombo (proposed) PetroSA Port Elizabeth 300,000
Boxscore Construction Analysis
42
Clean fuels mandate. South Africa lags behind many devel-
oped nations in fuel quality standards. Presently, the majority
of South African transportation fuels are graded at Euro 2 spec-
ifications. These fuels contain anywhere from 300 ppm to 500
ppm of sulfur. The countrys ultimate goal is to develop Euro
5-specification fuels. This would entail developing fuels to
contain 10 ppm or less of sulfur, the lowering of benzene from
5% to 1% and the reduction of aromatics from 50% to 35%.
Achievement of Euro 5 fuel specifications would allow the
country to import more modern, low-emissions vehicles. Most
modern cars cannot be imported into South Africa because
the lower quality of local fuels would damage the cars engines.
Importeed cars with sophisticated engines must be reverse-
engineered to accept the inferior fuels. To combat this issue,
South Africa is implementing higher fuel standards to reach
Euro 5-specification fuels by the end of the decade.
The South African government is implementing new reg-
ulations to curb sulfur in transportation fuels. The initiative,
Cleaner Fuels Program 2 (CF2), was announced in 2012. The
new fuel standards call for upgrades to all of the countrys exist-
ing refineries. The CF2 program has several major objectives:
Raise the quality of South Africas fuels
Reduce emissions
Encourage trade with the global market
Allow for greater access to new vehicle technology
Protect jobs in the value chain, including refining,
car manufacturing and related sectors.
The CF2 program was initially designed to begin in 2017,
but it has been pushed back to 2020. The extended deadline
provides South African refiners with time to make the neces-
sary upgrades to produce cleaner fuels and is a more realistic
timetable for the programs implementationone that could
cost South African refiners billions of dollars in upgrade costs.
Natref Clean Fuels 2. Natref is a JV between Sasol and Total
South Africa. Natref operates an 88-Mbpd refinery in Sasolburg.
The refinery is designed to process heavy, high-sulfur crude oils.
To meet future government requirements mandating increas-
ingly strict emission standards, the company is implementing
the Clean Fuels 2 project. The ultimate goal of the Clean Fuels
2 project is to upgrade the refinery to reduce the concentration
of sulfur in both gasoline and diesel, thereby meeting Euro 5
specifications for transportation fuels.
The project will add, revamp or upgrade the following units:
A new C
6
/C
7
splitter will be added to minimize benzene
precursors to the catalytic reformer
A new naphtha hydrotreater and a new isomerization unit
will be added
A new reformate splitter column will be added downstream
of the catalytic reformer
The existing diesel hydrotreating unit will be revamped
A new desulfurization unit will be added
A new amine system for new unit offgases will be installed
A new sour water stripper will be added
A new hydrogen plant will be built to increase hydrogen
production.
Additional construction includes new cooling towers, a new
steam and condensate recovery system, a new flare system, new
electricity substations and new storage tanks.
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Boxscore Construction Analysis
Fluor was awarded a basic engineering services contract for
the project in June 2013. The award followed Fluors work on
the feasibility study and conceptual engineering for the proj-
ect. The project is scheduled to be completed by 2017.
Sapref Clean Fuels 2. The Sapref refinery is the countrys
largest refinery. The 169-Mbpd refinery is located in Durban,
on the east coast of South Africa. The refinery accounts for
nearly 35% of the total domestic refining capacity. As with the
Natref clean fuels project, Sapref is conducting its own clean
fuels project.
The Clean Fuels 2 project is a substantial upgrade to the ex-
isting refinery. The modernization program aims to improve the
quality of transportation fuels through a reduction in the levels
of sulfur, benzene and aromatics. The project was scheduled to
be completed by 2017 to adhere to new government regulations,
but Sapref has pushed back the completion date to be more in
line with the South African governments 2020 deadline.
Fluor has completed the projects front-end engineer-
ing design (FEED) phase. A detailed design and engineer-
ing package has also been compiled. The projects next step
is the award for engineering, procurement and construction
management (EPCM). With the deadline for the clean fuels
mandate pushed back to 2020, the EPCM contract is likely to
be awarded in the next few years.
Project Mthombo. The Mthombo plant, if built, will be one
of the largest refineries in Africa. The $10-B, 300-Mbpd refin-
ery will be constructed in the Coega Industrial Development
Zone near Port Elizabeth. The construction of the refinery will
accomplish two goals. The first goal is to prevent a shortfall
of domestic refined fuels. The countrys growing demand for
transportation fuels is outpacing the countrys refining capac-
ity. Demand for transportation fuels is forecast to grow to more
than 400 Mbpd by 2020. If no investment is made, the country
will be forced to import almost 200 Mbpd by 2020 to satisfy
demand. Additional refining capacity is needed to address do-
mestic supply challenges and reduce imports.
Secondly, the modern refinery will have the ability to pro-
cess medium-sulfur and high-sulfur crude oils to produce high-
er-grade fuels, thereby meeting the governments mandate for
Euro 5-specification fuels.
If greenlighted, the massive refinery project is scheduled to
be completed by the end of the decade.
Detailed and up-to-date information for active construction projects in the refining,
gas processing, and petrochemical industries across the globe|ConstructionBoxscore.com
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SM
Viewpoint
SLEYMAN ZMEN, vice president of Refining
and Chemical Licensing at Shell Global Solutions
International BV, has a deep-seated passion for
devising solutions for his customers refining
challenges. He also possesses more than four
decades of experience in the downstream
sector, along with numerous qualifications,
patents and technical papers. Following roles
with IFP (three years), BP Amoco (eight years)
and UOP (20 years), he joined Shell in 2006
to lead its new worldwide hydroprocessing
licensing organization. His portfolio was later
extended to include all of Shells licensed
refinery and petrochemical technologies. In
2009, he was appointed vice president.
SLEYMAN ZMEN
Vice President, Refining and Chemical Licensing,
Shell Global Solutions International BV
The journey to a value-adding refinery project
Projects are a means of creating value
from assets. The more thorough a projects
planning and management, the more suc-
cessful it is likely to be. However, it is quite
common for a project to become fully op-
erational 45 years after its initial defini-
tion, during which time the prevailing mar-
ket conditions are likely to have shifted.
For many executives, this is a key concern:
How can they ensure that their investment
plans remain technically and economically
robust in the new environment?
To help address such concerns, Shell
Global Solutions has developed the Hon-
eycomb Model (FIG. 1). The principal aim
of this model is to help ensure that proj-
ects capture maximum value through all
the natural stages of project progression.
It also highlights how a strategic licensor
can support projects along the journey.
Develop the best plan. A projects
early planning stages are critical. It is pos-
sible to capture substantial value through
good project definition and smart refin-
ery configuration.
A key activity in the first part of the
Honeycomb Model is the combination
of technology selection and intelligent
configuration. This activity can make a
huge difference to a projects bankability
and future economic performance, and
numerous pivotal decisions are necessary
at this juncture. For instance, the specific
technologies for each new process unit in
the configuration must be selected.
This selection involves evaluating the
features and capabilities of the various
technologies on the market, but seasoned
project executives will know that there are
also several key risks. For example, will the
technologies match at the interfaces? Are
all the promised benefits likely to material-
ize? Is the technology well-proven and de-
risked? If not, does the projects economic
model align with the most likely improve-
ment in the technology over time with uti-
lization and targeted performance?
Secondary decisions then followfor
example, feedstock robustness. Should
the ability to process heavier, high-sulfur
or high-total-acid-number crude oils be
built in? Should the hardware necessary to
produce premium products, such as winter
diesel and low-sulfur marine fuels, be in-
stalled? Although these capabilities would
increase the capital expenditure, they could
have major impacts on future margins.
During these early planning stages, the
project teams should continuously chal-
lenge themselves and ask what changes
Operating
manuals
Technical
training
Operational
training
Startup
support
EPC
support
FEED
support
BEP
Conguration
selection
P
r
o
j
e
c
t

o
b
j
e
c
t
i
v
e
V
a
l
u
e
-
a
d
d
i
n
g

p
r
o
j
e
c
t
Technology
selection
Design
basis
Post-
startup
support
Long-term
catalyst
support
Long-term
technical
support
Journey to a value-adding project
Develop the best plan Execute it correctly Continue to improve it
FIG. 1. The Honeycomb Model helps keep investment plans robust in changing environments.
Viewpoint
46
could be made to better meet the refiners
business objectives. Companies can un-
cover remarkable value by doing this.
On a recent project, for example, the
owner was struggling with capital con-
straints. The scheme included a hydro-
cracker with 99% conversion. However,
by working closely with the refinery, it was
discovered that the hydrocracker could
still achieve its objectives at 85% conver-
sion through integration with another
process unitan adjustment that made
the project economics look very different.
Execute it correctly. Another critical
point in the lifecycle of a capital invest-
ment is the project execution phase. A re-
curring theme of many successful projects
is that all of the partiesincluding the
strategic licensor; the front-end engineer-
ing design provider; and the engineering,
procurement and construction contrac-
torscontinue to challenge the assump-
tions behind the original design well into
the execution phase.
For instance, during the creation of the
basic engineering package, experienced
designers may be able to uncover oppor-
tunities to simplify refinery processes, to
improve energy efficiency, to remove re-
dundancies or to integrate process units.
Substantial value can also be won or lost
at the startup phase. A three-month delay
in startup, for example, can turn a business-
critical project into a regret investment.
Typically, the strategic licensor will pro-
vide a crew to advise during precommis-
sioning, commissioning and startup, so
their level of experience is paramount.
Continue to improve it. Once the com-
pany begins to take responsibility for, and
to operate, the new assets, its executives
will have their own concerns. Will the
new assets operate reliably enough to gen-
erate sufficient cash to cover the financing
costs? Will they hit their cycle-length and
yield-profile targets? Do these new units
have sufficient flexibility to adjust to the
prevailing conditions?
The final part of the Honeycomb
Model is about continuing to improve the
new assets by addressing concerns and
potential opportunities. The strategic li-
censor can continue to support the new
owner with programs such as the Shell
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mance. Even in the most well-designed and
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lecting the configuration of the refinery
through to startup and beyond.
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Special Report
REFINERY OF THE FUTURE
The refinery of the future is a place where advanced
technologies and highly skilled workers will raise to new levels
the standards for efficiency, safety and plant intelligence,
said Lance Gyorfi, vice president of refining, Chevron Products
Co., in 1998. The global refining industry has witnessed
many advances over the last two decades. Future refining
operations will blend many developments to produce clean
refined products with more efficient and safer operations.
Photo courtesy of eni
Special Report
Refinery of the Future
W. S. LETZSCH, Technip Stone & Webster Process
Technologies, Houston, Texas; and C. DEAN, High Olefins
FCC Technology Services, LLC, Houston, Texas
How to make anything with a catalytic cracker
The first fluid catalytic cracking (FCC) process was in-
troduced almost 72 years ago; yet, this technology remains a
principle conversion process in a modern refinery. Much has
changed since the original FCC unit (FCCU) became opera-
tional. Properly operated, an FCCU can produce a variety of
valuable refined products, including olefins and aromatics in
addition to high-quality transportation fuel products. Vari-
ous refined products can be produced via an FCCU only with
changes in operating condition, different feedstocks and ad-
vanced/specialty catalyst choices.
Maximizing individual products. Numerous papers have
been presented that focus on maximizing the various products
produced by an FCCU. These topics usually appear when the
economics favor a particular yield. This article can be used as
a reference for FCC operators to apply as a guide on what is
necessary to maximize (or minimize) the yield of the many
diverse FCC products.
To achieve top performance from an FCCU, several factors
must be considered. First, the design must be conducive to
the making of the particular product. Second, the properties
of the feedstock are important since the molecules entering
the unit will determine what can potentially be made.
Optimization of the many operating variables is required,
along with using proper catalyst. Using the right catalyst in the
proper way is the single most important action that a refiner
can take to maximize FCC performance.
Gasoline maximization. From the beginning, the FCCU
was primarily a gasoline machine. Feedstocks were atmo-
spheric gasoil (AGO) and vacuum gasoil (VGO), and the
objective was to produce high yields of gasoline. Originally,
the gasoline yield was maximized by recycling both light- and
heavy-cycle oils. The coke make was almost twice as high as
necessary since the recycle rates could be as much as 100% of
the fresh feedrate. Some designs had two risers that were of
equal size.
The present-day design parameters for an FCCU to maxi-
mize gasoline are:
1. A straight and vertical reaction system that operates in
a gas/solid mode with minimum slip and an optimum
residence time.
2. Feed injectors that vaporize the feed as fast as possible
and reduce the incoming regenerated catalyst tempera-
ture to the mix temperature quickly.
3. Rapid separation of the spent catalyst from the reaction
products. This quickly terminates the reactions,
thus minimizing the dilute-phase residence time
and/or the temperature of the product vapors.
4. Stripping should be as efficient since hydrocarbons
carried over to the regenerator are primarily
gasoline and diesel. Excessive residence time of the
hydrocarbons in the stripper will convert them
to light gases, thus reducing gasoline yield.
5. Regeneration should be essentially complete since the
residual carbon left on the catalyst is associated with
the large-pore molecular sieves used in the catalyst.
FCC feed. Feedstock has a very marked impact on gasoline
yields.
1
Since gasoline typically has a hydrogen content of
about 13.5 wt%, a feedstock that is higher in hydrogen will pro-
duce more gasoline yield. TABLE 1 shows results from a cracking
study done in a circulating pilot plant with a Middle East GO, a
severely hydrotreated Louisiana GO, and the atmospheric bot-
toms from a US shale oil.
2
The shale oil data was adjusted to
better simulate the expected commercial results.
TABLE 1. FCC yields (circulating pilot plant)
Feedstock Arab GO HT US GO Utica shale (ATB)*
API 21 27.8 30.1
S, ppm 2.36 633 470
N, ppm 1,257 422 94
Concarbon 0.27 0.16 0.5
K factor 11.74 12.07 12.70
Hydrogen 12.03 12.99 13.55
Conversion, % 76.5 81.7 89.7
LPG 20.4 22.9 27.7
Gasoline 48.2 54.1 57.1
LCO 14.9 14.5 6.3
DO 8.6 3.6 4.0
* Extrapolated reference
TABLE 2. Efect of reactor temperature on gasoline yield, vol%
Rx temp. 930F 960F 985F 1,000F 1,030F
21 API 57.7 60.9 62.0 60.7 60.3
26 API 66.1 67.7 66.9 64.5 62.6
The data show a direct correlation between hydrogen content
of the feed and gasoline yield. Even though the tight oil contains
some 1,050F plus material, the gasoline yield exceeds 57 wt% or
67 vol% on fresh feed.
Operating variables must be manipulated to attain high con-
version while minimizing coke and light gases make.
3
Maximum
gasoline yield usually occurs at conversion levels between 80
vol% and 85 vol%. The conversion will be lower when processing
aromatic feeds. Highest gasoline yields are achieved by maximiz-
ing catalytic activity within the parameters of the reaction sys-
tem. Too much activity will give too low catalyst-to-oil (C/O) ra-
tio, and it could lead to catalyst deactivation due to higher coke.
As summarized in TABLE 2, the reactor temperature will usu-
ally be between 960F and 985F. Lower temperatures adversely
affect the stripper operation, and the higher temperatures will
overcrack the gasoline produced.
TABLE 3 summarizes the effects of the major operating vari-
ables on an FCC operation.
4
In this instance, reaction temper-
atures above 980F will have lower gasoline yields as did the
heavy-cycle oil recycle. Recycle at high conversion is usually
used for bottoms cracking rather than for producing more gaso-
line. Increasing catalyst activity and the C/O ratio (by lowering
feed temperature), and reducing the reactor pressure, will in-
crease gasoline yield. While lowering the feed temperature will
make more coke, the dry gas yield may be reduced. If heavy feeds
are processed, the ability of the feed injection system to vaporize
the feed may set a minimum feed temperature.
Catalyst impact. Catalyst properties must be tuned to the
particular FCC operation. Both the feedstock and equipment
limitations impact the choice of catalyst and additives. Gasoline
and conversion may not be maximized if the unit is operating
against multiple constraints, such as the air blower, wet-gas
compressor and catalyst circulation.
The main catalyst variables that can be controlled are fauja-
site zeolite content and type and degree of exchange of the zeo-
lite. Matrix activity, pore structure and total pore volume, and
metals passivators are all matrix components, which are varied
to optimize the FCCU.
Catalysts containing intermediate pore-size zeolites (ZSM-
5) need to be excluded. This is sometimes forgotten when an
equilibrium catalyst is used.
The equilibrium unit cell size needs to be optimized as well.
For maximum gasoline, values ranging from 24.32 to 24.40 are
used. Feeds with few coke precursors would benefit from larger
numbers, while heavier or more aromatic feeds normally re-
quire lower values. Coke and gas selectivities are usually limited
in that case. The starting unit cell size should be as close to the
equilibrium value as possible since the fresh catalyst will play a
significant role in the overall cracking performance.
Diesel maximization. A few years ago, the only products mak-
ing money for US refiners were the middle distillates, i.e., diesel,
kerosine, heating oil and jet fuel. The entire refinery became fo-
cused on maximizing middle-distillate products including the
TABLE 3. Major operating variables efects on FCCU
Scenarios Base Increase ROT Increase MAT
Case ID 0 1 2 3 4 5 6
Base case
ROT
Base +10F
ROT
Base +20F
ROT
Base +30F
MAT:
Base +1
MAT:
Base +2
MAT:
Base +3
Operating conditions
ROT, F 980 990 1,000 1,010 980 980 980
Feed preheat, F 500 500 500 500 475 450 425
Catalyst MAT 70 70 70 70 71 72 73
C/O 6.32 6.49 6.67 6.83 6.29 6.28 6.27
Coke 0.80 0.79 0.78 0.78 0.83 0.85 0.88
Regenerator temp., F 1,323 1,329 1,335 1,342 1,334 1,343 1,353
HCO recycle, vol% fresh feed 0 0 0 0 0 0 0
Reactor pressure, psig 28 28 28 28 28 28 28
Yields, wt%
Dry gas 3.45 6.39 3.93 4.16 3.59 3.70 3.84
LPG 17.91 19.39 21.22 22.28 17.98 18.07 18.12
Propylene 5.14 5.75 6.46 6.91 5.17 5.20 5.23
Gasoline 52.45 51.84 50.79 50.42 52.66 52.88 53.06
LCO 14.87 14.08 13.32 12.60 14.50 14.11 13.74
Slurry 5.97 5.97 5.57 5.21 4.90 5.78 5.58
Coke 5.04 5.13 5.23 5.32 5.19 5.36 5.52
Conversion 79.17 80.37 81.49 82.51 79.74 80.32 80.87
FCCU. As with gasoline maximization, all aspects of the FCCU
must be considered.
Diesel is the first product from the cracking reactions, and
it reaches a peak before the gasoline yield, as shown in FIG. 1.
When diesel-range material cracks, the primary product is gaso-
line. A riser would be the preferred reactor design with no back-
mixing. Contact time should be short, and the recycle of uncon-
verted feed is required since the bottoms yield would be excessive.
Feed injection systems must vaporize the feedstock quick-
ly while quenching the hot catalyst from the regenerator. This
minimizes coke and dry gas make. A quick separation of the
hydrocarbons and spent catalyst minimizes dry gas make. While
bottoms cracking occurs in the dilute phase of the reactor, it is
more effective to recycle the unconverted feed.
Efficient stripping minimizes the amount of middle distil-
lates that are burned in the regenerator, thus reducing the load-
ing to the gas plant. Better stripping provides more operating
flexibility to optimize other operating variables.
Regenerator. Regeneration of the catalyst should be effi-
cient. However, striving for the lowest carbon on catalyst may
not be desirable. The strongest acid sites on the catalyst tend to
crack the feed all the way to gasoline. Since the residual carbon
is associated with these sites, a carbon level of about 0.1 wt% to
0.2 wt% may be desirable, and it would depend on the catalyst
(formulation) used.
Diesel-free feed. The feed to the cracker should not have
any diesel present. This material is preferentially cracked
to gasoline, and there is a large cetane loss. If a cat-feed hy-
drotreater is being used, then the operator should consider op-
erating it as a mild hydrocracker. This action is more selective
to diesel than an FCCU, and it provides a high-quality product
for the diesel pool.
Hydrocracker. If the refinery has a hydrocracker, it should
be operated at capacity. This may require additional hydrogen
for the plant, but it should be economical. At lower FCC con-
versions, the light-cycle oil (LCO) is a higher-quality product
and requires less-severe post-treating.
5
Feedstocks with two and three aromatic rings will make
more LCO than paraffins, since the aromatic nuclei are resis-
tant to cracking reactions. Recycle streams and coker GOs are
relatively rich in these molecules, and they will produce more
middle distillates. These can be processed in the fresh feed
riser or in a separate dedicated reactor riser. Coker GOs boiling
in the diesel range would go to a middle-distillate hydrotreater
rather than the FCCU.
Main fractionators should have a heavy-cycle oil (HCO)
draw so that a more coke-selective stream can be sent to the
FCC.
6
Decant oil should go through dedicated nozzles to pre-
serve the integrity of the regular feed nozzles. Refiners have re-
ported better overall yields when the decant oil is injected well
downstream of the fresh feedstock.
Catalysts used to maximize LCO should be very low in ac-
tivity.
7
As shown in FIG. 2, this is true for rare earth Y. Type
Y or ultra-stable zeolites have large pores, and they are very
TABLE 3. Major operating variables efects on FCCU (cont.)
Increase C/O Increase recycle Reduce pressure
7 8 9 10 11 12 13 14 15
C/O via
preheat
Base 50F
C/O via
preheat
Base 100F
C/O via
preheat
Base 150F
HCO recycle,
%FF
Base +5%
HCO recycle,
%FF
Base +10%
HCO recycle,
%FF
Base +15%
Operating
pressure:
Base 2 psi
Operating
pressure:
Base 4 psi
Operating
pressure:
Base 6 psi
980 980 980 980 980 980 980 980 980
450 400 350 500 500 500 500 500 500
70 70 70 70 70 70 70 70 70
6.71 7.11 7.49 6.28 6.26 6.24 6.46 6.61 6.77
0.79 0.79 0.78 0.83 0.86 0.89 0.78 0.76 0.74
1,321 1,319 1,316 1,335 1,346 1,358 1,316 1,308 1,301
0 0 0 5 10 15 0 0 0
28 28 28 28 28 28 26 24 22
3.44 3.39 3.36 3.61 3.73 3.90 3.36 3.27 3.17
18.08 18.23 18.36 17.80 17.71 17.62 18.03 18.14 18.26
5.21 5.26 5.31 5.11 5.08 5.06 5.18 5.22 5.26
52.96 53.42 53.61 52.14 51.86 51.58 52.79 53.12 53.49
14.25 13.67 13.15 15.60 16.31 17.01 14.64 14.41 14.15
5.41 5.66 5.37 5.14 5.34 4.69 4.04 5.85 5.73
5.31 5.59 5.85 5.21 5.38 5.56 5.04 5.02 5.02
80.11 80.98 81.73 79.08 79.01 78.97 79.53 79.88 80.25
effective at cracking diesel-sized molecules. Type Y or ultra-
stable zeolites must be limited to about 5%10% in a catalyst
formulation to prevent overcracking of the LCO. Studies also
suggest that smaller crystal sizes would help by allowing the
LCO produced to diffuse more rapidly out of the sieve.
Matrix activity should be maximized to give higher first-
pass cracking, and the catalyst should have mainly interme-
diate or low-acid strength sites. Strong-acid sites produce
gasoline. An open-pore structure is desired to minimize LCO
overcracking. Compositions that include magnesium have
been proven to make more diesel due to their unique acid-
strength distributions.
Operating variables are manipulated to give low conver-
sions. TABLE 4 summarizes various operating variables to con-
trol. Reactor temperatures of 930F950F are used for GO,
while resids may require 950F960F to avoid excessive hy-
drocarbon carryover from the stripper. Feed preheat may be
maximized, and a fired heater would be required for the more
crackable feeds.
Recycle is essential to improve bottoms cracking with
low conversions. Rates of 1%30% would be required to give
LCO/GO ratios of at least 3, and, in many cases, over 5, for
these middle-distillate operations.
Iso-C
4
s. The iso-C
4
hydrocarbons are very valuable. Refiners
frequently want to maximize or, at least, increase one of them.
These molecules are isobutylene and isobutane.
3
Both are im-
portant feeds to an alkylation unit, and the isobutylene is used
to make methyl-tertiary butyl ether (MTBE), the preferred
oxygenate used globally except in North America. Isobutyl-
ene can also serve as a feed to a catalytic polymerization unit
or as a similar process that makes gasoline from light olefins.
Isobutane is required for alkylation. Some refiners are short of
this material due to a lack of local field butane supplies.
Isobutylene. The C
4
hydrocarbons are generally one of the
ultimate products from a catalytic cracking unit due to the
beta-scission carbenium ion cracking mechanism. Equilib-
rium concentrations of the various C
4
s are rarely achieved
due to the reactivity of the butylenes. The isobutylene equi-
librium sets the maximum amount of isobutylene that can be
produced in a typical catalytic cracker.
8
At equilibrium condi-
tions, the percentage of isobutylene in the butenes stream var-
ies from 46% at 950F to 44% at 1,050F.
9
The actual percent-
age of isobutylene in the butene stream depends on the unit
design operating conditions, feedstocks and catalyst. While
isobutylene is initially produced, hydrogen transfer reactions
can diminish its yield.
Unit design features that help preserve isobutylene are: a
short reactor contact time, and rapid separation of the spent
catalyst and reactor effluent. Reducing the dilute phase tem-
perature and contact time also is important. Low reactor hy-
drocarbon partial pressures are essential for minimizing hydro-
gen transfer, and FCCUs operating above 30 psig may not be
able to make the needed isobutylene. Dispersion and/or riser
stream will lower the hydrogen transfer reactions.
Like every other product from an FCCU, feedstock plays
an important role in isobutylene manufacturing. In general,
high K factor feeds will give more isobutylene than more aro-
matic stocks. More paraffinic feeds can operate at higher con-
versions and generate more LPG. Typically, LPG has a hydro-
gen content well above 15 wt%, so hydrogen-deficient feeds
cannot make as many barrels of isobutylene. The percentage
of the olefins may be lower, depending on the operating vari-
ables and conversion levels. Key feedstock parameters would
include the amount and configuration of the naphthenes. The
length of the side chains on the ring compounds will deter-
Davison MAT
900F, 16 WHSV, 3 C/O
Midwest rener feed
API = 29.4, K = 12.2
Gasoline and distillate
Gasoline
LCO
0
0
20
40
60
80
100
10 30 50
Conversion, vol% FF
L
i
q
u
i
d
s
,

%
0 16 2 0
Relative zeolite content
70 90 100
FIG. 1. Effect of zeolite content on LCO yield at constant operating
severity.
70 vol% conv.
65 vol%
75 vol%
0
9
10
11
12
13
14
15
16
8
7
2 4 6 8
Zeolite input, wt% (Si, AI basis)
L
C
O
,

v
o
l
%
10 12 14 16
FIG. 2. Effect of zeolite concentration on LCO yields.
53
mine whether C
3
or C
4
olefins are formed. The main operating
variable for producing more isobutylene is reactor tempera-
ture. The amount of the C
4
iso-olefin increases significantly
when the gasoline is over-cracked.
Other variables that increase conversion can also increase
isobutylene yield. These include higher catalyst activity and
higher C/O ratios. Both can promote hydrogen transfer reac-
tions; thus, the amount of isobutylene will not be as high as
that yielded by increasing reactor temperature. If the conver-
sion is taken too high, then the higher reactivity of the isobu-
tylene will diminish its yield.
Catalyst properties can have a very large effect on isobutyl-
ene yield. The goal is to get conversion, but with minimum hy-
drogen transfer. The large-pore zeolite used should be an ultra-
stable Y (US-Y) rather than a rare earth Y (REY). Minimal RE
should be used for stabilization. A lower unit cell size is desir-
able, and it is important that the fresh catalyst also be low in
unit cell size. High unit cell sizes mean the acid sites on the zeo-
lite are closer together, and that promotes hydrogen transfer.
An active matrix will provide much needed catalytic activity
and has minimal hydrogen transfer activity. Bronsted acid sites
would be preferred to Lewis acids since they would promote
more skeletal isomerization of the olefins. ZSM-5 tends to in-
crease the isobutylene concentration since the gasoline that
cracks within the medium-pore zeolite produces a concentra-
tion of isobutylene near the equilibrium value (40% or higher).
Isobutane. Isobutane yield will increase with conversion but
can be cracked thermally in the feed injection zone. When re-
actor temperatures reach 1,030F, the base of the riser is near
1,100F. Since isobutane is a function of hydrogen transfer re-
actions, the opposite factors for maximizing isobutylene gen-
erally apply.
To minimize thermal cracking, the best conditions are good
feed injection system, low slip factor riser, rapid and high sepa-
ration of the spent catalyst and reactor products, short dilute
phase contact times and/or low temperatures, and a highly ef-
fective stripper and regenerator.
Feedstocks higher in hydrogen work best for the same rea-
sons outlined in the previous section (isobutylenes). Tight oils
would be expected to produce high quantities of isobutane
with the proper unit design and operating conditions.
While high conversions are desired, catalytic conversion is
preferred to thermal conversion (reactor temperature). Higher
catalyst activity can be achieved by increasing the activity of
the catalyst or the C/O ratio by reducing feed temperature. It
is normally more economical to first increase the RE content of
the catalyst to raise activity, then increase the large-pore zeolite
content, and finally raise catalyst additions. A higher UCS is
usually desired. Using ZSM-5 should be reduced or eliminated.
Butylenes. Butylenes are the most desirable light olefins in a
gasoline-oriented refinery. These often have a value of gasoline
or higher since they are the preferred feed to an alkylation unit.
Butylenes give the highest octanes and consume less isobutane
than propylene. Amylenes are usually only processed to reduce
gasoline olefinicity and/or vapor pressure.
All of the caveats that applied to making more isobutylene
apply to maximizing butylenes. The unit design and feedstock
TABLE 4. Efect of operating variables for increasing LCO yields
Adjustment Problem
Catalyst activity Lower Poorer selectivity
Carbon on catalyst Increase Poorer selectivity
Hydrocarbon partial
pressure
1) Steam rate Increase Minor variable (mixing)
2) Unit pressure Decrease Gas comp. limit
Combine feed temp. Increase Regen temp. increase
Reactor temperature Lower Octane, olens
Regenerator temp. Increase Metallurgy higher gas make
Recycle, HCO Increase Inc. coke capacity
Boiling range adj.
1) IBP Lower Poor economics ash pt. 10%
2) FBP Increase Color cetane spec.
Feedrate Increase Hydraulic limits
Catalyst to oil Lower Regen temp. increase
Contact time
In reactor Lower Bottoms cracking
In dilute phase Lower Bottoms cracking
LIGHT WOrk
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properties would not be different. Reactor temperature is the
key operating variable. Normally, a minimum reactor tem-
perature of 980F would be used to make light olefins. Many
refiners will run over 1,000F reactor temperature when op-
erating in this mode. Low-hydrogen transfer and controlled
activity are desired with an ultra-stable zeolite with a unit cell
size of 24.32 angstroms or less. Some units might run as low
as 24.27 angstroms, but dry gas or low conversion may be-
come a limitation.
Some catalyst additives are aimed at increasing butylenes
vs. propylene. Since the additive suppliers have more experi-
ence with their products than a typical refiner, they should
be consulted as to a product recommendation and a yield
estimate. Increased matrix activity is also desired for maxi-
mizing butylenes and modifications to the ZSM-5 carrier
may also help.
ACKNOWLEDGMENT
This is an updated version of an earlier presentation at the American Fuels
and Petrochemical Association Annual Meeting, March 16-18, 2014, at Orlando,
Florida.
LITERATURE CITED
1
Bryden, K. J. and E. T. Habib, Jr., Processing shale oils in FCC: Challenges and
opportunities, Hydrocarbon Processing, pp. 5964, September 2013.
2
Huovie, C., et. al., Solutions for FCC Refiners in the Shale Oil Era, AFPM
Annual Meeting, March 2006.
3
Alternative Routes to High Conversion, The Catalyst Report, TI-805 Engelhard
(BASF).
4
Gim, S., W. Letzsch, H. McQuiston and C. Santner, FCC Opportunities at Lower
Throughputs, AFPM Annual Meeting, March 2010.
5
Unzelman, G., Potential Impact of Cracking on Diesel Fuel Quality, Katalistics
4th Annual FCC Symposium, 1983.
6
Niccum, P., Maximizing diesel production in an FCC-centered refineryPart 1,
Hydrocarbon Processing, September 2012.
7
Pillai, R. and P. Niccum, Select new production strategies for FCC light cycle oil,
Hydrocarbon Processing, February 2013.
8
McLean, J. B. , G. S. Koermer and R. J. Madon, Maximizing catalytic isobutylene
selectivity, paper from Engelhard.
9
McLean, J. B. and A. Witsoshkin, Iso-olefins for oxygenate production using
Isoplus, NPRA Annual Meeting, March 1993.
WARREN S. LETZSCH has 46 years of experience in petroleum refining including
petroleum catalysts, refining, and engineering and design. His positions have
included R & D, technical service and sales, which led to senior management
positions in sales, marketing and technology development and oversight. He was
one of the developers of the Technip/Axens R2R process and has authored over
80 technical papers. Mr. Letzsch holds eight patents in the field of fluid catalytic
cracking. He was the FCC/DCC Program manager at Stone & Webster for 10 years
and is now a senior refining consultant for Technip as well as a private consultant
to the refining industry.
CHRISTOPHER DEAN is an independent process engineering consultant with over
37 years in the worldwide refining business with an emphasis on high olefin fluid
catalytic cracking (HOFCC) with petrochemical integration. He is the founder and
principal consultant for High Olefins FCC Technology Services LLC. His worldwide
refining background includes the development and commercialization of the
High Severity-FCC Process, the development of several integrated refinery and
petrochemical projects, catalyst technical service, process engineering, design
and unit operations on a variety of refinery units. He has published or presented
over 30 papers and has been issued two patents on FCC gasoline desulfurization
and has three other FCC pending process patents.
Industrial Bolting Systems Advanced Tensioning Systems Hydraulic Torque Wrenches Pneumatic Multipliers
Electric Multipliers Hands-Free Safety Time Saving Simplicity Industry-Leading Accuracy Patented Innovations
Special Report
M. TRYGSTAD, Yokogawa Corp. of America,
Sugar Land, Texas
Consider high-fidelity online motor fuel
characterization
Motor fuels are complex products. Various diesel fuel and
gasoline grades are prepared from a large range of individual
blending components whose individual properties may be ex-
tremely variable over time. Each day, refiners must determine
the blend recipe based on the properties, value and availabil-
ity of those components, as well as the target specifications for
the product. Once that is done, the operational challenge is to
verify that the blended product delivered to the pipeline actu-
ally meets those contractually defined specifications. Variation
in catalyst and unit operations, unrelenting cost pressures and
an ever-wider range of crude oil feedstocks compound the chal-
lenge. No matter how daunting these factors are, it still remains
the refiners job to manage all elements so that they are transpar-
ent to the pipeline operator.
Meeting specifications can mean either that a property val-
ue must not fall below a defined minimum or be greater than
a do-not-exceed limit. An obvious example is octane in gaso-
line. Regulations are designed to ensure that the octane value
of gasoline sold as 91 octane is, in fact, not less than 91. Yet, the
pipeline operator and the consumer filling up at the gas station
are not concerned if the refiner delivers 92 octane instead. But,
for the refiner, such property giveaway can be costly.
Do-not-exceed specifications include sulfur, Reid vapor pres-
sure (Rvp) and benzene, for which government regulators de-
fine maximum values. Similarly, cold properties in dieselsuch
as cloud point, pour point and cold-filter plugging pointhave
maximum that vary seasonally. In general, the greater the excur-
sion from specification limits into safe territory parts per mil-
lion (ppm), the greater the potential profit loss for the refiner.
Complex product. Gasoline is more complex than diesel in
that it typically has a larger range of potential blending compo-
nents (up to 10). While the individual components may con-
tain 100 or even hundreds of distinct chemical compounds,
the blended product may have over 1,000. The objective in
blending is not to control the individual components, although
toluene may be added to increase octane while butane both en-
hances octane and improves starting in cold weather. Rather, fi-
nal blend properties are dialed in during the process by control-
ling the ratios of the blending components, each of which has
its own unique set of properties. The fact that properties often
interact in opposing ways further aggravates the difficulties of
blending. For example, adding butane boosts octane, but can
raise Rvp beyond acceptable limits.
Online analysis of properties in the blended product is criti-
cal for meeting specifications and minimizing property give-
away. Refiners without online property analyzers must blend
to tank and then sample the blended batch before releasing it
to the pipeline. Online analyzers do not necessarily eliminate
this practice. However, real-time monitoring and feedback
control to the blending optimization program help ensure that
no rework (batch adjustment) will be required before release
to the pipeline. Online property measurements can help mini-
mize errors in manual sampling and testing. Also, the fact that
blending control is based on hundreds of measurements (FIG. 1)
instead of a few samples taken to the refinery laboratory lever-
ages the statistical benefits.
Motor fuel properties. Listed here are properties that are
among the many that must be certified to specifications gov-
erning custody transfer via pipelines:
Research octane number (RON), motor octane number
(MON) or pump octane, which may be calculated as an
average of the two (gasoline)
Rvp (gasoline)
Benzene (gasoline)
Sulfur (gasoline and diesel)
Distillation yield points (gasoline and diesel)
Pour point (diesel)
Cloud point (diesel)
FIG. 1. Blending control is based upon hundreds of measurements.
Cold-filter plugging point (diesel)
Flash point (diesel)
Polycyclic aromatic hydrocarbon (PAH) compounds,
also known as polynuclear aromatics (PNAs) for diesel.
Given the immense number of properties that must be
controlled during blending, a control strategy that uses online
analyzers normally depends on having one analyzer for each
property or group of properties. Thus, a gas chromatograph can
generate values for multiple distillation points, but most other
properties require a dedicated analyzer. The analyzer for octane
is actually a high-tech engine, called a knock engine. These en-
gines are very expensive and labor intensive.
The high cost to install, operate and maintain online analyz-
ers has led to the quest for a less complicated, more comprehen-
sive approach. What refiners want is the ability to predict final
product characteristics based on the simplest and least expensive
analysis methods. For over 20 years, refiners have sought relief
for this problem by predicting motor fuel properties based on in-
ferential spectrometry. The earliest and most common example
is multivariate near-infrared (NIR) spectroscopy, with Fourier
transform infrared (FTIR) and Fourier transform near infrared
(FTNIR) being important variants.
All of these technologies infer properties via the advanced
multivariate statistical modeling discipline known as chemo-
metrics. Proponents of a particular spectroscopy technology ar-
gue that theirs has advantages over the others. And while some
do excel for very specific, technical reasons (which are beyond
the scope of this discussion), none are completely satisfactory.
More recently, users have considered Raman spectroscopy and
nuclear magnetic resonance (NMR) technologies.
What is the problem? No single method has emerged as a
fool-proof, always reliable, one-size-fits-all approach. Though
inferential spectrometry has well-established capabilities, users
hoping for a perfect solution find, instead, that ongoing fidelity
demands ongoing modeling. Further, all properties apparently
do not lend equally well to this inferential approach.
In an effort to make refiners comfortable with their partic-
ular type of NIR analyzer, Raman analyzer or NMR analyzer,
vendors refer to the sample spectra they measure as finger-
prints. They further explain, that because each compounds
spectrum is unique, their combination in various concentra-
tions will produce a spectral fingerprint that is also unique. The
job of chemometrics, then, is to correlate a mixtures fingerprint
with its properties. But, as anyone reading a detective thriller
knows, this analogy quickly falls apart at two levels. First, spec-
troscopy adds another dimension, in that it is not just about
pattern recognition, but also is quantitative. Extending the anal-
ogy, it is like trying to have a crime-scene investigator examine
a fingerprint left on a glass and using it to determine how hard a
finger was pressed against the surface. Second, the fingerprints
of two different gasoline blends may be quite similar (or even
identical), given the large number of ways that a refiner can
blend products to meet quality specifications.
Thus, the expectation is that inferential spectrometry will
work for the numerous recipes that combine blending com-
ponents with a variable property makeup. With the average
concentration of compounds in gasoline being 100%/1,000 =
0.1%, consequently, the requirements for developing and up-
dating chemometric models do not square with the expecta-
tions for prediction fidelity.
At issue is the fact that all compounds in a blend give re-
sponses across the same wavelength or frequency scale. What
differentiates them is that their signal strength at each wave-
length is not the same. But all those individual fingerprints are
effectively superimposed on each other in the final spectrum of
the blended product.
A musical analogy. Compare the process to recording a sym-
phony orchestra. No matter how many instruments there are,
what gets recorded via a microphone becomes a single wave-
form. If you examine that waveform on a computer, you can
identify an instrument playing a note at 440 Hz, but you may
not be able to tell if that instrument is a clarinet, violin, trumpet,
something else or all of the above. If you listen to one instrument
at a time, you might be able to identify what you are hearing from
the waveform. However, with more instruments, it will become
increasingly difficult or even impossible to distinguish among
the various components that together produce the music.
Such is the case with analyzing motor fuels: you are looking
for small but significant differences in the spectrum. Many of the
compounds are quite alike and have similar NIR expressions,
but recognizing these small but distinct differences is the key to
properly quantifying motor fuel characteristics.
Can one spectrum define the chemistry? There is no
question that the spectrum is determined by the chemical com-
position, and that all the individual components combine to cre-
ate the final result. Given all those variables, it is no surprise that
developing and keeping high-fidelity models in tune is difficult.
The fact that inferential spectrometry works as well as it does
attests to the technology, the high information content in the
spectra, and the power of chemometric modeling.
The possibility exists that two measurably different spectra
from two different blends will have practically identical prop-
erties (FIG. 2). Moreover, two spectra that are practically indis-
tinguishable may have measurably different property values. In
mathematical terms, a chemometric model under-determines
the chemistry of the sample. It also means that properties of
I
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e
n
s
i
t
y
Wavelength
FIG. 2. Overlaid spectra for a number of different gasoline blends
at a single refinery. Although the overall shapes of the spectra are very
similar, they differ with respect to the relative intensities of absorbance
values from one end to the other.
interest do not express themselves uniquely in a given sample
spectrum. In terms of information science, the degrees of free-
dom in the chemistry of a calibration sample set used to make
chemometric models exceed the degrees of freedom in the
spectra for those samples.
Certainly, correlations exist between the properties and the
information in the spectral data, but the correspondence be-
tween the chemistry and the spectral data is incomplete. So, the
information from any of the measurement methods does not
uniquely and completely describe the chemistry of the mix.
Ranking the technology. When considering the variety of
online analyzer technologies on the market, the strengths and
weaknesses of each product should be thoroughly parsed. Re-
member that obtaining a good result depends on getting solid
reference data from the lab, which then becomes the data used
in making the model. This means that the modeling sample set
must be representative of the full range of blend recipes.
The crux of the debate is determining what aspect has more
shortcomings, the spectrometer or the modeling? The model-
ing algorithms are the key, since they will allow for chemomet-
ric success. However, sometimes refiners need more than the
technology can deliver, and vendors do not like to admit that
their product is not up to the task.
The solution to this quandary may lie with selecting the best
analyzer technology for the application, and then using the data
generated by the analyzers in a systematic, technically respon-
sible fashion. NIR has been the default approach for many years
for motor fuel analysis. Most users accepted it because, until
about a decade ago, there was little in the way of alternatives. But
the difficulty in obtaining high-fidelity property predictions has
allowed other spectroscopic technology vendors to suggest that
the information content in NIR spectra is insufficient.
Vendors of Raman and NMR spectrometers for online mo-
tor fuel applications have been gaining attention in the mar-
ket, due to the novelty of these technologies and the dispar-
ity between the promise and performance of NIR. Chemists
have long relied upon NMR, mid-IR and Raman instruments
to elucidate the chemistry and structure of compounds that
are nominally pure. This is because the spectral responses are
Input into modeling
software and model
development
Measurement of spectra
of all samples
(s
1
, s
2
, ..., s
n
)
Measurement of the
spectrum of the unknown
process sample
8 5 2
Population of
calibration samples
1
Measurement of spectra
of all samples
(p
i1
, p
i2
, p
i2
, ..., p
in
)
Development of modeling data set
for properties P
Modeling Property measurement
3
Predicted value for
property p
i
9
Data set for
property P
i
4
Model for
property P
i
6
Process sample
to be analyzed
7
FIG. 3. Overview and implementation of inferential spectrometry models.
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discrete and lend to interpretation unaided by chemometrics.
Certainly, the information they generate is more accessible,
but the point is that, generally, the value of the methods is
secured without chemometrics. By contrast, motor fuel prop-
erty prediction is a statistical, population-based enterprise: its
a different game, and different rules apply. In practice, when
working with motor fuels, Raman spectroscopy and NMR
have a track record similar to NIR when it comes to predict-
ing fuel characteristics. Indeed, claims that superior informa-
tion content is the key to successful inferential spectrometry
ring hollow when it comes to mixtures containing hundreds
or thousands of components. On that basis, an informed spec-
troscopist will reason that the best performance available from
any molecular spectroscopy technique cannot exceed that of
the best FTNIR spectrometer.
Solution. Is the situation hopeless? No, but the answer will
not be found in looking for new technology. Instead, the best
solution is to be more vigilant about maintaining and applying
spectral data sets used to create property models.
Refiners seeking to apply online inferential spectrometry
for motor fuels analysis have high expectations driven by their
need to meet contractual obligations and maximize profits. But
the noted gap between those needs and the performance deliv-
ered by inferential NIR spectrometry has caused much doubt
concerning the latter, with the first assumption being that there
must be something wrong with the technology.
The simple fact is that there is no magic. These technologies
work, but they must be applied with discipline:
Keep spectral data set models up to date
Be fanatical about reference value accuracy from the lab
Examine and test the model assumptions regularly
Be sensible about data evaluation and realize its limitations.
More specifically, inferential spectrometry for motor fuel
property prediction depends on attention to elements depicted
in FIG. 3. These elements include:
Proper development and selection calibration samples
used in modeling
Transfer those samples to the laboratory in a way that
preserves sample integrity, followed by properties analysis
Model development consistent with best practices
Initial and ongoing inferential prediction validation by
statistical comparison
Constant property model changes via continued modeling
data set updates.
Motor fuel analysis requires refiners to take control of the sit-
uation. Those involved should possess a realistic understanding
of what is and is not possible, and have a firm grasp on what in-
formation can be extracted dependably. This information must
then be used in an intelligent manner to continuously update the
inferential analysis, a process that requires experience, engineer-
ing expertise and refined judgment.
MARCUS TRYGSTAD is a business development manager in advanced analytical
solutions for Yokogawa Corporation of America.
www.mustangeng.com
Special Report
V. V. GALKIN and V. MAKHIANOV, Gazprom Neft,
Moscow, Russia; and M. I. LEVINBUK, Topchiev Institute
of Petrochemical Synthesis, Russian State University
of Oil and Gas, Moscow, Russia
Case history: Modernization of Russias
refining industryPart 1
Russian laws governing transportation fuels and crude oil
have undergone many changes. These regulatory changes will
involve the revamping of Russias refining industry. At present,
this nation has 22 large refinerieseach with a throughput
capacity of 5 million tpy (MMtpy), according to the Russian
Ministry of Energys register.
13
However, the domestic refin-
ing industry includes eight mid-sized refineries with capaci-
ties ranging from 1 MMtpy to 5 MMtpy and over 200 small
refineries with significantly much lower processing capacity
(under 1 MMtpy).
Under the new laws, domestic refineries must modernize
or shut down. Not all of Russias refineries will be upgraded.
The following technical review outlines the economic strat-
egies that will be applied to select the refineries that can be
modernized cost-effectively. Important questions to be re-
solved include: What are the possible impacts to Russias
refining and petrochemical industries? What new process
technologies will be most effective to optimize the output of
gasoline, middle distillates, or petrochemical feedstocks, and
to upgrade heavy oil residues?
BACKGROUND
Changes in Russian law will introduce technical regulations
on the quality of oil products, excise duties for various trans-
portation fuels and refined products, and refinery utilization
or efficiency without heavy residue processing.
46
The most
effective modifications are processing schemes that maximize
middle distillates output.
Many mini-refineries will be closed due to economic rea-
sons. Medium-sized refineries with capacities less than 5
MMtpy and without complex and efficient refining processes
offer low profitability. However, incorporating flexibility to
handle heavy-oil residue can increase their economic efficien-
cy and provide payback for the medium-sized refineries.
The new export duties on heavy-oil residue products will
start in 2015; they are almost 100% for duties on crude oil.
7

Because the majority of produced fuel oil is exported from
Russia, this measure would cause sharp decreases in profit-
ability, especially for less-efficient refineries.
Russias refining industry is composed of large refineries,
medium-sized facilities and numerous mini-refineries.
13
At
present, all refineries are under evaluation for future revamps
and modernization. Such an endeavor by an industry poses
many questions, such as:
Will installing processing capacity to handle heavy-oil
residues provide needed profit with new export duties,
especially for medium-sized refineries?
What is the minimum capacity for a refinery to be
profitable and provide return on investment (ROI)
within a reasonable time?
What is the minimum level of investments necessary
to upgrade the refineries?
The authors present efficiency assessments for refinery
modifications for three refining schemes: gasoline, diesel and
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p
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a
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v
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d
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Isomerization
Visbreaker
Bitumen plant
IBP-70
70-180
180-240
VGO
VR
Abbreviations:
HT hydrotreating, CCG catalytically cracked gasoline, FCC uid catalytic cracking, VGO vacuum gasoil,
SDF summer diesel fuel, HPU hydrogen production unit, SRU sulfur recovery unit, HCGO heavy catalytic gasoil,
LCGO light catalytic gasoil, VBR visbreaking
Reforming
VGO HT FCC
Kerosine HT
240-350
DF HT
Commercial fuel oil (sale)
Bitumen (sale)
Kerosine (sale)
SDF (sale)
Isomerizate (blending)
CCG HT
Light CCG (blending)
Heavy CCG (blending)
BBF (blending/sale)
L
C
G
O
H
C
G
O
Reformate (blending)
G
a
s
o
l
i
n
e
,

D
F
Gasoline-stripping
Crude oil
FCC Naphtha
Naphtha HT
IBP-180
GFU
Dry gas
LPG (sale)
SRU
Sulfur H
2
S
HPU
Natural gas H
2
FIG. 1. Process flow diagram, gasoline option.
petrochemicals. These schemes also include consideration
to handle heavy-oil residue. A sensitivity analysis of ROI ad-
dresses variable oil prices.
ASSESSMENT CRITERIA
Three key oil refining models are used in the analysis:
1
1. Gasoline based on catalytic cracking
2. Diesel based on vacuum gasoil (VGO) hydrocracking
3. Petrochemicals for maximum production of
petrochemical feedstock, based on fluid catalytic
cracking (FCC) with maximum yield of
3
4
olefins.
FIGS. 13 demonstrate the principal processing configuration.
Each configuration integrates heavy-oil residues processes:
Bitumen production
Residue hydrocracking (70% conversion)
Coking
Deasphalting.
To achieve fuel specifications, hydroprocessing capacity is
also increased.
Estimates for the listed products were calculated for
throughput capacities ranging from 1 MMtpy to 10 MMtpy,
in increments of 1 MMt. This approach clearly shows the
trends in economic efficiency for small-, medium- and large-
sized refineries. The goal of the study was to identify the mini-
mum capacity to revamp that would provide ROI under cur-
rent Russian Federation legislation. The process model used a
minimum set of processes to control project investments. The
model focused on producing Euro-5 transportation fuels and
residue processing. Crude quality is taken equal to Urals oil,
with sulfur and light petroleum product content of 1.4% and
47%, respectively.
Export duties are set per current Russian Federation law.
2

Crude prices used in the analysis were $90/bbl to $100/bbl.
The analysis also considered price decreases of $80/bbl and
$60/bbl.
Capital cost. Investment costs for plant construction are cal-
culated on the basis of available data for similar plants, as well
as data received from and CLG companies.
7
Investments
are recalculated for different plant capacities:
8
I = I
(C / C
)
0.6
where I is the calculated investments for a plant with capacity, C.
I
and C
are known investments and capacity of a refinery.

Construction costs for auxiliary and power facilities, offsite fa-
cilities (OSFs) and construction management expenses are es-
timated as 70% of the cost for the main processing units. This
level of costs corresponds to constructing a new refinery. If the
refinery has a well-developed infrastructure, then this ratio
can be decreased. However, taking into account the process
models of small- and medium-sized refineries in Russia, the
modification will be comparable to building new refineries.
Operating costs are calculated on the basis of actual plant
performance at OJSC Gazprom Neft refineries and reference
data.
7
To minimize operating and capital costs, it is assumed
that plants are constructed as complexes rather than as indi-
vidual units. Complex construction is executed in parallel,
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Crude oil
GFU
Dry gas
LPG (sale)
IBP-62 (sale)
62-140
SRU
Sulfur H
2
S
HPU
Natural gas H
2
Naphtha HT Reforming
Reformate (sale)
Visbreaker
Bitumen plant
Bitumen (sale)
VGO
VR
Abbreviations:
VGO vacuum gasoil, SDF summer diesel fuel, DF diesel fuel, HT hydrotreatment, SHCD VGO hydrocracker,
HPU hydrogen production unit, SRU sulfur recovery unit, VBR - visbreaking
G
a
s
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l
i
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e

D
F
SHCD
Kerosine (sale)
IBP-62 SHCD (sale)
DF (sale)
140-240
Kerosine HT
Kerosine (sale)
240-350
DF HT
SDF (sale)
Heavy naphtha
Unconverted oil
Gasoline-stripping
FIG. 2. Process flow diagram, diesel option.
A
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v
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d
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i
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a
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n
Crude oil
GFU
Dry gas
LPG (sale)
SRU
Sulfur H
2
S
HPU
Natural gas H
2
Isomerization
IBP-62
Benzene (sale)
Light CCG TAME fr. (blending/sale)
Heavy CCG (blending)
62-140
Isomerizate (blending)
Toluene
(blending/sale)
Rafnate (sale)
Xylene fr. (sale)
Naphtha HT
CCG HT
Alkylation
TAME
production
BBF
BBF
(conv.)
Propylene (sale)
LPG (blending/sale)
MTBE (blending/sale)
MTBE
production
IBP-140
Reforming
Reformate
splitter
140-240
Kerosine HT
Kerosine (sale)
240-350
DF HT
SDF (sale)
L
C
G
O
G
a
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e
,

D
F
D
C
C

H
G
O
Gasoline stripping
VGO
VGO HT DFCC
Alkylate
(blending/sale)
Visbreaker
Abbreviations:
HT hydrotreating, CCG catalytically cracked gasoline, DFCC deep uid catalytic cracking, VGO vacuum gasoil,
SDF summer diesel fuel, DF diesel fuel, HPU hydrogen production unit, SRU sulfur recovery unit,
HCGO heavy catalytic gasoil, LCGO light catalytic gasoil, VBR visbreaking
Bitumen plant
VR
Bitumen (sale)
FIG. 3. Process flow diagram, petrochemical option.
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which minimizes the timeframe. The main assessment crite-
ria include:
1. Crude conversion ratio
2. Yield of light petroleum products
3. Breakeven point. Note: If the capital investment for
the modifications is high, then depreciation will also
account for a large share of fixed costs.
4. Net present value (NPV)
5. Minimal refinery capacity in which the ROI for the
modifications has a payback of less than 15 years.
All process models are made and optimized in MS Excel
spreadsheets and validated.
a
HEAVY-OIL RESIDUE PROCESSING OPTIONS
Production of bitumen is the least capital-intensive meth-
od for tar processing. A significant drawback of this scheme is
the dependence on seasonal fluctuations
of the bitumen market in Russia. Dur-
ing the winter, bitumen consumption
decreases considerably. FIG. 4 illustrates
the efficiency by the selected refinery
configurations with bitumen production
without restrictions on selling bitumi-
nous products.
The model allows for the oil con-
version ratio at the 91%96% level and
the yield of light petroleum products of
63%71%. These estimates apply to a
10-MMtpy refinery with an estimated $4
billion (B)$5.2 B capital expense (CA-
PEX). Because of the high yield of dark
oil products, only oil refineries with
capacities of more than 9 MMtpy10
MMtpy will be profitable under the new
2015 export duties. However, at present
export duties, smaller-capacity refiner-
ies (4 MMtpy5 MMtpy) can provide
ROI. The breakeven point is 0.6 MMtpy
at the 2012 duties, and it increases up to
1 MMtpy at the 2015 export duties.
Residue hydrocracking. Hydrocrack-
ing of vacuum residue (VR) is not a wide-
spread method for processing heavy-oil
residues, although interest in this process
has increased. For example, JSC Luk-
oil made a decision to construct residue
hydrocrackers at the Bourgas (Bulgaria)
and Nizhny Novgorod refineries. More
importantly, new residue hydrocracking
processes are under development, along
with modifications to established pro-
cesses. In 2012, the installation of a new
hydrocracking technology at an Italian
refinery was announced.
Considering the relevance of heavy-
oil residue processing, Russian research
institutes are also engaged in develop-
ing hydrocracking technology. The Rus-
sian Academy of Science Petrochemical
Synthesis Institute is building a demon-
stration facility, called Topchiev. Con-
struction is scheduled to be finished by
20152016.
FIG. 5 shows the performance of refin-
eries with residue hydrocracking capac-
ity. Conversion is assumed at 70%. Such
0
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6
0 1 2 3 4 5 6 7 8 9 10 11 12
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93.2%
65.9%
95.8%
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62.9%
Crude conversion, % Yield of light petroleum
products, %
-1
0
1
0 1 2 3 4 5 6 7 8 9 10 11 12
-1
0
1
2
0 1 2 3 4 5 6 7 8 9 10
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
Diesel
Petrochemical
Gasoline
FIG. 4. Efficiency of oil refining schemes with production of bitumen.
Diesel
Petrochemical
Gasoline
1
2
3
4
5
6
7
85.1%
76.6%
86.6%
79.7%
81.9%
67.5%
products, %
0
0 1 2 3 4 5 6 7 8 9 10 11 12
C
A
P
E
X
,

$

b
i
l
l
i
o
n
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
0 1 2 3 4 5 6 7 8 9 10
0 1 2 3 4 5 6 7 8 9 10
N
P
V

e
x
p
o
r
t

d
u
t
i
e
s

2
0
1
5
,

$

b
i
l
l
i
o
n
-1
0
1
N
P
V

e
x
p
o
r
t

d
u
t
i
e
s

2
0
1
2
,

$

b
i
l
l
i
o
n
-1
0
1
FIG. 5. Performance of oil refining schemes with process of tar hydrocracking.
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schemes allow attaining processing efficiency at 82%87%
levels and yield of light-oil products at 68%80%. Needed
CAPEX ranges from $5.2 B to $6.2 B, depending on the fi-
nal product slate (gasoline, diesel or petrochemicals) for a
10-MMtpy refinery. Due to incomplete residue conversion
and high investment costs under the 2015 export duties, only
refineries with capacities of 8 MMtpy9 MMtpy are profit-
able. However, under present export duty options, refineries
with capacities of 6 MMtpy7 MMtpy can provide an ROI.
The breakeven point is 0.7 MMtpy at the 2012 duties, and it
increases up to 0.8 MMtpy at the 2015 duties level.
Deasphalting. Deasphalting is one of the most widespread
processes of VR processing. Selection of asphalt-free oil de-
pends on the distribution of metals in the initial VR and its
CCR. For the VR produced from Urals oil, 55%60% yield is
realistic.
8
Processing schemes with deas-
phalting of the VR allow reaching a pro-
cess efficiency of 77%84% with yield of
light products at 63%78%. The invest-
ment is $4.8 B to $5.5 B for a 10-MMtpy
refinery, as shown in FIG. 6. Because of
high asphalt yield (11% for oil) and un-
der the 2015 export duties, only oil re-
fineries with capacities over 7 MMtpy
are profitable. Under the existing export
duties, options with oil refining starting
from 6 MMtpy7MMtpy can provide
ROI. The breakeven point is 0.7 MMtpy
at 2012 duties, and it increases to 0.8
MMtpy at the 2015 duties.
Coking. Coking installations use vary-
ing methods. Delayed coking, fluidized-
bed coking and flexicoking are the most
common installations to handle heavy-
oil residues. The coking process was
widely applied in the countries of the
former USSR to produce coke for the
aluminum industry and ferrous metal-
lurgy. Oil processing in Russia has a
rich experience for the metals industry,
which is very important in the final deci-
sion making.
FIG. 7 shows the performance of re-
fineries with coking capabilities. Such
configurations allow attaining refin-
ing efficiency levels of 84%89% with
light product yields of 70%82%. In-
vestments of $5.2 B$6.2 B are needed
for a 10-MMtpy refinery. Calculations
show that, due to the low coke yield
and dark oil products (6% for oil), the
2015 export duties have no impact on
the performance of these schemes. Oil
refineries with capacity over 6 MMtpy
can provide ROI. The breakdown point
is 0.65 MMtpy at 2012 duties, and it in-
creases 0.7 MMtpy at the 2015 duties.
Next month. In Part 2, the authors
compare the CAPEX and ROI to mod-
ernize select Russian refineries to meet
new legislation governing transporta-
tion fuel qualities and excise duties for
crude oil and refined products to begin
in 2015.
N
P
V

e
x
p
o
r
t

d
u
t
i
e
s

2
0
1
2
,

$

b
i
l
l
i
o
n
-1
0
1
2
0 1 2 3 4 5 6 7 8 9 10
0 1 2 3 4 5 6 7 8 9 10
N
P
V

e
x
p
o
r
t

d
u
t
i
e
s

2
0
1
5
,

$

b
i
l
l
i
o
n
-1
0
1
2
0 1 2 3 4 5 6 7 8 9 10
86.1%
78.2%
89.1%
82.4%
83.6%
69.9%
products, %
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
Diesel
Petrochemical
Gasoline
1
2
3
4
5
6
7
0
C
A
P
E
X
,

$

b
i
l
l
i
o
n
FIG. 7. Performance of oil refining schemes with coking process.
0 1 2 3 4 5 6 7 8 9 10
0 1 2 3 4 5 6 7 8 9 10
-1
0
1
N
P
V

e
x
p
o
r
t

d
u
t
i
e
s

2
0
1
2
,

$

b
i
l
l
i
o
n
N
P
V

e
x
p
o
r
t

d
u
t
i
e
s

2
0
1
5
,

$

b
i
l
l
i
o
n
-1
0
1
0
1
2
3
4
5
6
0 1 2 3 4 5 6 7 8 9 10 11 12
C
A
P
E
X
,

$

b
i
l
l
i
o
n
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
Gasoline
Diesel
Petrochemical
Diesel
Petrochemical
Gasoline
79.5%
73.3%
84.3%
78.4%
76.7%
63.0%
products, %
FIG. 6. Performance of oil refining schemes with process of deasphalting.
Special Report
I. MONCRIEFF, Kline and Co., Parsippany, New Jersey
Which margin levers impact Group I and Group II
base stock competitiveness?Part 2
This is the second in a two-part series assessing the struggle
taking place between Group I and Group II/III for market con-
trol and price formation in the global base stocks industry. Part
I provided observations on the salient events of the recent past
and their impact on the changes in profitability for Group I and
Group II plants in their core markets.
Part I focused on the past, and this installment looks to the
future. Are the events of the previous two years a significant
trough in a cycle that will return the base stocks industry to pre-
2012 norms of pricing relationships and profitability? Or are we
seeing the early symptoms of a longer-term change in supply/
demand and price/cost relationships in the upstream segment
of the lubricants industry that will bring margins and returns
closer to those experienced in mainstream refining? To make
those judgments, the next 10 years will be assessed for possible
changes in the fundamental forces influencing base stock profit-
ability and how these forces may shape the magnitude and tim-
ing of a possible recovery in industry margins.
OVERCAPACITY AND UNCERTAINTY
Pricing is a symptom of the interplay between the underlying
fundamentals of demand, capacity, plant operations and costs,
all comingled in the crucible of competition. Information about
these fundamentals is available to all mainstream refinery opera-
tors daily (if not in real time). However, the transparency in com-
moditized refined products markets does not yet extend fully to
base stock markets, and is even murkier in finished lubricants.
While more limited transparency may be a boon to marketers
(creating fertile ground for branding and other forms of differ-
entiation), it is a mixed blessing to base stock producers, particu-
larly those perched precariously on the brink of extinction.
It is difficult to develop reliable data on historical demand,
supply, capacity or production for time intervals of less than one
year. When lubricant consumption estimates are then translated
into base stock demand, a further set of complexities is added,
due to the need to deduct the estimated volumes of additives,
and to add the uncertain quantities of base stocks used in non-
lubricating applications. These applications include drilling flu-
ids, solvents and illegal fuel adulteration.
Since base stock producers are unable to access near-term as-
sessments of overall market fundamentals, they are forced to rely
heavily on their own micro-view of the world. These data limita-
tions can introduce a greater degree of uncertainty into the base
stocks market, particularly at times when overcapacity threatens.
Marginal Group I producers can plan shutdowns for mainte-
nance turnarounds, but they seem very reluctant to permanently
close or mothball plants for economic reasons until there is ex-
tensive evidence that a return to profitability is unlikely. One
example: A mid-size Group I producer, still in operation, whose
aggregate losses in the past two years have reached $90 million.
In cases such as this, the permanent shutdown process may
be prolonged by the fact that many of the most-affected owners
are nationally-controlled, or are independent producers situ-
ated in locations with benign socioeconomic policies. In short,
the behavioral forces sustaining this inefficient supply overhang
have exacerbated the fundamental weakness experienced in
base stock markets over the past two years.
TEN YEARS ON
The outlook for the key margin levers impacting the global
base stock business over the next 10 years can be divided into
five sections. These are:
Lubricants consumption
Capacity utilization
Interplay of base stock profitability and capacity utilization
Option values
Inter-group competition.
Lubricants consumption. Despite evidence of stagnant
global lubricants demand since 2005, conventional wisdom is
that the less-developed world and the BRIC countries will be
the engines of growth in lube consumption. Recent forecasts
generally bracket a compound worldwide growth rate of 1%
to 2% a year over the next 10 years, with declining consump-
tion in Europe and North America more than offset by growth
elsewhere. A business-as-usual (BAU) projection of 1.4%/year
in global lubes demand to 2023 produces an additional 5 mil-
lion tons per year (MMtpy) of base stock demand by the 10th
year. That incremental base stock demand is equivalent to the
effective capacity of nearly five Pascagoulas (Chevrons lubri-
cant plant in Mississippi), or roughly 1215 marginal Group I
plants. The industrys past expectations of future lubes demand
growth spawned the new investments in Group II and Group
III plants that have been announced in the past several years,
totaling nearly 10 MMtpy of production if operated at expect-
ed calendar day capacity. If all these planned capacity additions
come onstream, the BAU demand growth outlook will require
some significant capacity rationalization (primarily in Group I)
over the next several years, if further erosion of global operat-
ing rates is to be avoided.
But what if the demand fundamentals do not evolve as ex-
pected? The current and prospective excess of higher-quality
Group II/III base stock supply over technical demand is ac-
celerating the displacement of Group I in many traditional
formulations. In the automotive market, the drive toward ex-
tended drain intervals continues, with fill-for-life the potential
end-game. Can growth in industrial lube consumption offset
greater efficiency in the automotive dynamic? The macroeco-
nomic forces impacting growth in the global vehicle fleet and
in gross domestic product (GDP) are beyond the discussion
here, but it would be foolhardy to ignore the market realities of
the past eight years. Is a future of no growth in global lubricants
demand certain? No, but it would be remiss to ignore the les-
sons of history without at least considering that scenario when
contemplating the future of lubricant demand.
Capacity utilization. The rush to add new very-high-viscosity
index (VHVI) base stock capacity in the aftermath of the eco-
nomic rebound of 2010 is likely to be felt well after their startup
dates, as large new Group II and III plants compete with mar-
ginal Group I producers for discretionary markets. How does
the potential uncertainty in base stock demand interact with
projected capacity additions, and what does that imply for the
potential ranges of effective global capacity utilization in the
future? Effective capacity is defined at 84%86% of nameplate,
taking account of the typical stream day operability of Group
II/III plants (around 90%), offset by the lower calendar-day
availability of Group I and naphthenics units.
The implications of the BAU and no growth global lubri-
cant demand scenarios on projected base stock effective capacity
utilization, assuming no future shutdowns of underperforming
Group I/II plants, are depicted in FIG. 1. The effective capac-
ity utilization outlook in FIG. 1 accounts only for the nearly 170
Mbpd of new Group II/III capacity that is firmly committed to
come onstream over the next four years. It excludes a further 50
Mbpd of announced projects that havent yet broken ground and
are therefore considered uncertain.
In FIG. 1S BAU demand scenario, effective capacity utili-
zation continues to drop, and does not recover to even 2013
levels of 84% until late in this decade. This outcome is funda-
mentally unsustainable, as low base stock capacity utilization
results in lower profitability or operating losses. Moreover, the
progressive decline in core Group I markets will put competi-
tive volumetric pressure on all Group I producers, increasing
per-barrel fixed costs.
Throughput efficiency will be distributed unevenly, with
large, integrated Group II/III plants operating at above-average
utilization, and smaller and export-dependent Group I plants
struggling to survive. If the future of plant utilization is pro-
jected to deteriorate further in the next five years, what are the
implications of that overcapacity on base stock production mar-
gins, and on shutdowns of inefficient plants?
Profitability vs. utilization. FIG. 2 incorporates recent research
on the relationship between the effective utilization of world-
wide base stock capacity (caputil) and cash margins. The data
and analysis supporting this relationship are (necessarily) aggre-
gated and thus may not be representative of the specific circum-
stances of individual plants. Nevertheless, there is empirical evi-
dence of a causal relationship between plant utilization and cash
margins, with the consequent impacts on base stock pricing.
Group I plants in Europe are worth focusing on, because
they are the high-cost/low-value players in the base stock
market, and are most vulnerable to bumping against cash cost
breakeven or worse. As long as Group I shutdown economics
dictate the floor of base stock pricing, it is this supply source
that is most critical to price formation in a structurally long
market. The slope of the caputil/margin graph is impacted by
some uncertainties around the pricing of byproducts, such as
the various aromatic extracts, solvent deasphalting (SDA) tars
and waxes, and, by the export-dependency of specific produc-
ers. Thus, this must be taken as only generally indicative of the
impact that overcapacity has on cash margins.
The base stock caputil/cash margin relationship slope,
at around $0.75/bbl of feed, must then be translated into an
equivalent gradient for base stock pricing adjustments. Since
Group I plants are on-purpose for base stocks and not for
byproducts, the entire incremental margin leverage on feed
could be attributed to base stocks. In effect, historical move-
70
75
80
85
90
95
100
105
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Actual 20072013
BAU lubes demand
No lube demand growth
C
a
p
a
c
i
t
y

u
t
i
l
i
z
a
t
i
o
n
,

%
FIG. 1. Actual and projected global base stock effective capacity utili-
zation with no Group I/II shutdowns, 20072023. Source: Kline and Co.
-10
-5
0
5
10
15
20
80 85 90 95 100 105
T
o
t
a
l

f
e
e
d
,

$
/
b
b
l
Slope = 75/bbl per 1% change in caputil
R
2
= 0.66

Utilization of global efective capacity (all groups), %
FIG. 2. European Group I cash margins vs. global effective capacity
utilization from 20052013, excluding 2009. Source: Kline and Co.
ments in capacity utilization are very largely responsible for
the changes in base stock price movements, which have been
observed over the past eight years.
In FIG. 2, cash breakeven on a typical European domestic
market-oriented Group I plant is between 80% and 85% of ef-
fective capacity. If projected utilization falls below that range
(as portrayed in FIG. 1), all bets are off, since sustained nega-
tive profitability will lead inevitably to closure of underper-
forming assets and a consequent rebalancing of the supply/
demand dynamic. The assets at risk are primarily Group I, but
also possibly some less-advantaged Group II units. This ca-
pacity closure/caputil dynamic is illustrated in FIG. 3, where
projected capacity shutdowns have been adjusted to ensure
that effective capacity utilization is maintained at no lower
than 80%, the minimum expected cash breakeven level.
The projections in FIG. 3 suggest profound consequences.
Some 70 Mbpd of inefficient capacity must be shut down in
the next several years, just to sustain effective operating rates at
or above 80% cash breakeven in the BAU scenario, with an ad-
ditional 16 Mbpd of closures required in the no growth out-
look. The industry is heeding this message, as Shell announced
in April plans to close its 7.3-Mbpd Group I plant in Pernis,
The Netherlands. Significantly more capacity must be shut
down to return medium-term profitability to the global base
stocks industry that would be associated with caputil (TABLE 1).
-60
-40
-20
0
20
40
60
80
100
120
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
K
B
/
S
D

Required BAU shutdowns
Firm capacity additions
FIG. 3. BAU capacity shutdowns required to sustain global effective
capacity utilization at 80% minimum. Source: Kline and Co.
TABLE 1. Cumulative Group I/II shutdowns required to sustain
future global efective capacity utilization at certain levels, in Mbpd
Efective capacity
utilization, % BAU demand No growth demand
80% 70 86
85% 134 151
90% 191 208
Source: Kline and Co.
B
e
s
t
V
a
lv
e
s
s
in
c
e
1
8
6
7
Option values. The economic competition that takes place
between base stock units and refinery conversion (FCC/HCC)
units for access to vacuum gasoil (VGO) feed is well under-
stood. Diesel demand growth has caused pressure on middle-
distillate supply, leading to more investment and lower-severity
operations in diesel-oriented refinery conversion processes.
The pressure on VGO feedstock supply to mainstream refinery
conversion units has become severe, and US distillate/VGO
spreads have narrowed as a result (FIG. 4).
While diesel/VGO cracks are unusually thin today, and may
recover somewhat as markets rebalance from the extreme North
American winter of early 2014, longer-term pressures on mid-
dle-distillate supply are unrelenting. Since the majority of base
stock plants today are entirely (or, in the case of Group I, sig-
nificantly) dependent on VGO feed, the future is unlikely to be
different from the recent past, as fuel markets dictate the price of
feedstock relative to its option value in base stock manufacture.
Looking at the Group I slate of products, much has been
written about the impact of Group I plant closures on the
supply and potential pricing of certain streams, such as high-
viscosity base stocks and waxes. Today, many Group I produc-
ers are looking into what choices they may have for tweaking
production to produce more heavy neutrals and brightstocks
at the expense of light neutrals, through some combination of
adjustments to crude slate and process operations, as well as via
enhanced SDA throughput. In effect, the reason for existence of
Group I manufacture needs to be revisited, to concentrate pro-
gressively on vacuum bottoms deasphalting, with correspond-
ingly diminishing volumes of VGO channeled to the lube unit
as low-vis solvent neutral cracks remain weak.
Group I plants are uniquely different from Group II and III
plants, in that they produce large volumes of byproducts that
are not commodity fuels, and which have more limited com-
mercial market options. The most significant of these Group
I byproducts, volumetrically, are aromatic extracts and SDA
tars. Markets for both byproducts are small, in decline or both,
resulting in the majority of Group I plant production of these
byproducts finding its way into refinery cracking or coking
(where available) units. A majority of the byproduct output of
Group I plants is likely to be supplied into refinery feedstock
markets where they are discounted in value relative to VGO or
vacuum bottoms. There is increasingly negative margin lever-
age through the lube unit for these materials, representing more
than 50% of feed, since the output value is lower than that of the
feedstock. A smaller, potentially positive value lever is associ-
ated with the diminished production of slack wax or finished
waxes (in plants with solvent dewaxing) as Group I plant clo-
sures occur. The positive margin contribution of potentially
higher wax prices will be more than offset by downward pricing
pressures on the larger-volume byproducts. The yield specific-
ity of finished waxes, typically less than 5% of total output, is
too small to sustain marginal Group I plants when much of the
fundamental production balance (excluding high-viscosity base
stocks) is neutral to negative.
Inter-group competition. An unintended consequence of the
recent decline in worldwide capacity utilization has been the
narrowing of traditional price differentials between base stocks
as higher-quality materials displace Group I in discretionary
(nontechnical) markets. Viscosity has become as important as
VI as an axis of price differentiation. Is this a temporary phe-
nomenon, with a prospective return to the way things used to
be? The answer is: No. Given the large new capacity of Group
II and III about to hit the market, and the likely consequent ac-
celeration in Group I closures, if anything, the prospects are for
even greater inter-Group price compression, particularly given
the lower cash-cost position of Group II and III production.
These capacity additions and closures will bring about sub-
stantially greater supplies of low-viscosity, higher-VI products
to the market, and reduce production of lower-VI stocks having
a broader viscosity spectrum. How markets adjust to these fun-
damentals is less clear, but a steepening of the viscosity/price
gradient is almost inevitable. Surviving higher-efficiency Group
I plants, which focus heavily on high-viscosity solvent neutral
and brightstock production, will be well-placed to take advan-
tage of such an outcome.
REDEMPTION
Amid the potential doom and gloom caused by the looming
new capacity overhang, and the uncertain growth prospects
for global lubricants demand growth, it is easy to conclude that
Group I is moribund. Nothing could be further from the truth.
But Group I needs to transition from its past as the dominant
source of base stock supply and global price-setter. Group
I will, over the next five years, need to embrace the mindset
of specialty-niche supplier, focused on products and markets
where its combination of viscosity spread, solvency and estab-
lished product formulations can sustain competitive advantage
for the most efficient players on the Group I cash-cost curve.
Such an evolution is not unlike that which naphthenics pro-
ducers have already been required to face. Ultimately, scale,
cost-effectiveness, value-chain integration and market option-
ality will be the key factors determining which Group I plants
close and which survive; but there will be a proper place for
efficient Group I supply in any future lubricant markets.
End of series. Part 1, June 2014.
IAN MONCRIEFF is a director of Kline and Co.s energy practice in Parsippany,
New Jersey.
0
10
5
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014
$
/
b
b
l
Source: Valero
FIG. 4. Premium of ULSD over HSVGO on the US Gulf Coast,
2007 to YTD 2014. Source: Valero.
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results for the new plant are compared
with performance data from an operat-
ing LNG plant.
Attention is then turned to another
LNG project under study. The projects
carbon dioxide (CO
2
) removal system
consists of a single, large absorber ser-
viced by two regenerators in parallel.
Initially, the plant would process about
1,400 million cubic feet per day (MMcfd)
of gas containing approximately 16 mol%
of CO
2
. A sensitivity analysis shows po-
tential susceptibility of treating perfor-
mance to departures of certain operating
conditions from design values, and it also
provides reasons for this sensitivity.
UNDERSTANDING
OPERATING PARAMETERS
There are a number of well-accepted
limits on plant operating parameter val-
ues. Examples are corrosion consider-
ations for carbon steel, which usually
limit rich amine CO
2
loadings to below
0.4 mole0.45 mole of CO
2
per mole
of amine. They also place upper limits
on maximum line velocities to prevent
the direct scouring of surfaces and the
removal of protective films, particularly
sulfide layers. Tower internals have natu-
ral restrictions on gas and liquid rates.
Beyond these natural hydraulic capacity
limits, jet flooding or downcomer back-
up and choke flooding of trays, or packed
column flooding, may occur. Finally, sol-
vent capacity is itself limited by tempera-
ture and acid gas partial pressures.
Corrosion, temperature and acid gas
pressures all limit rich solvent loadings,
while limitations on tower hydraulic ca-
pacity restrict throughput. These limits
restrict performance, but they do not
cause oversensitivity of performance to
small changes in the values of operat-
ing parameters. However, the small-
response-to-a-small-stimulus paradigm
has changed with the introduction of
fast-reacting solvents, such as piperazine
for CO
2
removal.
The development and availability of
highly precise simulation tools
a
have en-
couraged the design and construction of
new plants with lower design margins.
They have also allowed engineers to assess
precisely the effect of operating param-
eters on performance, and have revealed
the existence of operating cliffs or points
of instability on the performance map.
1
Although, regions of increased sen-
sitivity have been predicted even for
moderately fast-reacting CO
2
-mono-
ethanolamine (MEA) absorbers, when
piperazine is used to promote methyl
diethanolamine (MDEA), reaction rates
grow very large, and unexpectedly high
sensitivity of performance has been ob-
served. None of this has been predict-
able using the more traditional ideal-
stage simulation tools, even when they
have been modified with efficiencies,
and even with attempts to force reaction
kinetic rates into what is fundamentally
an equilibrium model. What enables the
mass-transfer-rate model to reveal what
has, for so long, been hidden behind the
faade of the ideal stage?
A real absorber contains a certain
number of actual trays, or a depth of a
specific packing, intended to promote
contact across the interface between the
counter-currently flowing vapor and liq-
uid phases. These flows are always turbu-
lent, to some extent, and the turbulence
level depends on the tray or packing de-
sign, along with the fluid properties and
flows. Turbulence affects the absorption
rate because it affects the mass-transfer
coefficients that prevail within the phases.
In parallel with heat-transfer coeffi-
cients in various types and designs of heat
exchangers, mass-transfer coefficients for
a wide range of tray and packing types
have been correlated with design details,
flow parameters and properties. In other
words, the mass-transfer characteristics of
tower internals are well understood and
well established; there is no guesswork.
Absorption rates also depend on con-
centration differences between the phases.
The separation achieved by a real tray,
or a certain depth of real packing, de-
pends directly on the absorption rate of
the component as dictated by the mass-
transfer characteristics of the internals.
The model is completely integrated with
the operation of real-world equipment.
The ideal stage concept, on the other
hand, replaces every important detail
with the single, simplifying assumption of
equilibrium between the phases. Howev-
er, since there are no composition differ-
ences between phases, there is no reason
for a separation. Regardless of applying
LNG
efficiencies or finessing the equilibrium
assumption in any other manner, the ideal
stage assumption eliminates reality from
the calculations, leaving a model that is
not only unable to perceive critically im-
portant process details, but that is also
vulnerable to gross errors.
LNG CASE STUDIES
This article consists of two case stud-
ies. The first study asks the question:
How closely can the performance of an
LNG plants CO
2
removal section be
predicted? This question is answered by
comparing performance predictions with
operating data from one of the trains of
an operating LNG plant. The second
case study is an analysis of certain aspects
of the CO
2
removal section of a project
under consideration. The case study ex-
amines the sensitivity of the design to op-
erating and design parameters.
Operating LNG plant. A proprietary
CO
2
removal solvent is used at 41 wt%
to treat inlet gas with the composition
shown in TABLE 1. The process flow
diagram (FIG. 1) is fairly conventional,
although a substantial portion of the
reflux water from the stripper overhead
condenser is mixed with process makeup
water and returned to the top of the ab-
sorber, rather than to the regenerator. At
the top of the absorber, four wash trays
recover the solvent from the treated gas.
There are 20 contacting trays in the ab-
sorption section.
The rich amine is flashed to remove
hydrocarbons, cross-exchanged with hot
lean amine, and then sent to the regenera-
tor. The regenerator contains three wash
(reflux) trays and 17 stripping trays. The
reboiler is energized using hot oil.
Absorber temperature and composi-
tion profiles indicate that the tower is
mass-transfer-rate controlled. Simulated
temperatures of various streams through-
out the plant are compared with mea-
sured data in TABLE 2. Stream numbers
refer to those shown in FIG. 1.
With the exception of the treated gas
temperature, the simulated temperatures
of all other streams match plant measure-
ments to better than 1C; the treated gas
differs by only 1.4C. The measured lean
amine loading was 0.04 mole of CO
2
per
mole of solvent, while the simulated value
was 0.036 mole of CO
2
per mole of sol-
vent. These values are almost identical,
validating the accuracy of the regenerator
simulation. The treated gas CO
2
level was
measured at 25 ppmv, whereas the simu-
lated value was in the range of 50 ppmv
60 ppmva greater discrepancy than ex-
pected. However, the feed gas is known to
contain heavy ends, and plant personnel
have identified the presence of foaming
in the column. Even a small amount of
foaming in an otherwise normally operat-
ing system can increase the vapor-liquid
area for mass transfer by 10%20%, which
is sufficient to give a predicted value of
25 ppmv30 ppmv of CO
2
.
LNG project under consideration.
This LNG plant is in the initial study
phase; therefore, the name of the project
and the location are not disclosed. How-
ever, the study phase is the time to per-
form sensitivity studies and determine if
it will be operable over the entire range
of expected conditions, and whether
there are regions in which the operation
of the plant might be overly sensitive to
one design parameter or another. If such
202
303
102
206
207
13
10
16
15
212
211
24
217
213
Water makeup
Knockout
Rich
ash
HP pump Absorber
Wet gas feed
Regeneration gas
from dehydration
Mixer 1
Regenerator
Cross X
Trim cooler
Gas cooler
Treated gas
Flashed gas
Acid gas
HC liquid
Booster pump
HC liquid
#1
#2
FIG. 1. Simplified process flow diagram for the operating LNG train CO
2
absorption system.
11
14
13
10
35
33
32
34
CB
Lean amine
cooler
Lean amine
pump
Lean amine ow
Rich ash
Flash tank
LCV
Rich lean XCHR
Divider 1
Amine surge
tank
Treated gas
Flash gas
Amine surge gas
Acid gas 1
Acid gas 1
Sour gas
Water makeup
and wash
Absorber 1
Absorber 1-LCV
Regenerator
1
Regenerator
2
Hot lean pump 2
Hot lean pump 1
Mixer 1
#1
FIG. 2. Simplified process flow diagram for the study case LNG CO
2
absorption system.
LNG
regions exist, then the plant must oper-
ate well away from them, or it must have
contingencies in place to ensure that sta-
ble operation can be maintained.
Regarding CO
2
, the raw gas to the
plant under consideration is at the op-
posite end of the spectrum from the op-
erating LNG facility. The CO
2
concen-
tration in the raw gas is about 45 times
highernominally 16 mol%. FIG. 2
shows a simplified process flow diagram.
A simplified gas analysis with relevant
conditions is provided in TABLE 2.
The absorber has been designed
with three one-pass valve trays to act as
wash trays and assist in the recovery of
any vaporized, proprietary solvent from
the treated gas. This short wash section
swages into the absorption section. The
main part of the absorber was designed
with two identical 4-m-deep beds of
proprietary packing rings selected for
their excellent hydraulic capacity and
high specific surface area.
2, 3
In tests,
this packing combines high throughput
with excellent mass-transfer perfor-
mance. At 60% of flood, the absorber
diameter is just over 25 feetwhich, at
48 barg, is a substantial tower shell by
any measure (TABLE 3).
The regenerators design stripping ra-
tio (i.e., the ratio of water vapor to acid
gas in the overhead vapor line going to
the condenser) is 0.8. The solvent circu-
lation rate is set to achieve a rich amine
loading of 0.5 mole of CO
2
per mole of
amine in the solvent. At the design lean
amine temperature of 115.8F into the
absorber, the treated gas was simulated
to contain 21.4 ppmv of CO
2
.
A study of how overall performance
might respond to variations in design
and operating parameters revealed that,
for the most part, the CO
2
content of the
treated gas was remarkably insensitive, so
the design appeared quite solid from an
operational standpoint. However, perfor-
mance was found to be sensitive to both
the depth of packing in the absorber and
the temperature of the lean amine.
Sensitivity to packing depth. The
simulated effect of packed-bed depth on
treating performance, as measured by the
CO
2
level in the treated gas, is shown in
FIG. 3. (Note the logarithmic scale on the
concentration axis.) The design point of
an 8-m-deep packed bed appears to give
a comfortable margin away from the 50-
ppmv specified limit for CO
2
. However,
reducing the bed depth to 7 ma dif-
ference of only 1 mwould result in the
treated gas exceeding this specification
by at least 20 ppmv, vs. meeting it with a
comfortable 30-ppmv margin.
Using appropriate packing depth is
critical to achieving a tight design. To en-
sure a truly safe design, it is necessary to
50 ppmv
1,000
100
R
e
s
i
d
u
a
l

C
O
2
,

p
p
m
v
10
1
1 6 8
Total packed depth, m
10 12
FIG. 3. Sensitivity of CO
2
in treated gas to
packing depth in the absorber.
TABLE 1. Composition of gas to the
CO
2
absorber
CO
2
, mol% 0.34
Methane, mol% 95.5
C
2
+
, mol% 4.1
N
2
, mol% < 0.1
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Berlin/Germany
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TABLE 2. Actual vs. simulated stream temperatures
Stream Actual temperature, C
Temperature achieved
with simulation tool, C Temperature diference, C
103 24.8 24.9 0.1
202 32.5 33.9 1.4
206 43.3 44.1 0.8
207 24.2 23.5 0.7
211 81.8 81.8 0
213 111.9 111.8 0.2
13 44.5 44.5 0
24 126.7 126 0.7
LNG
have confidence in the reliability of the
simulator. If a simulator that uses ideal
stages in any form is used, it must rely on
the engineer having high confidence in
the accuracy of the height-equivalent-to-
a-theoretical-plate (HETP) value used
to translate calculations into reality. Un-
fortunately, information on HETP val-
ues in amine systems is often unreliable.
The proprietary simulator, however, has
a real mass and heat transfer rate basis,
which allows it to avoid the efficiency
and HETP issues. Also, it has been finely
tuned to a large amount of commercial
plant performance data; the mass-trans-
fer rate model deals directly with the real
internals in the tower, not with theoreti-
cal HETP values.
Absorber performance is exponen-
tially sensitive to packed depth, mainly
because the absorbers performance in
this case is controllednot by the sol-
vent lean loading, but by the mass trans-
fer itself. The easiest way to understand
this concept is to look at the CO
2
con-
centration profile across the absorber,
shown in FIG. 4. Detail is made visible
by using the logarithm of CO
2
concen-
tration, and the temperature profile is
shown for reference.
The size of the temperature bulge is
substantial in the bulge region of the ab-
sorber. The CO
2
concentration is only
slowly changing in that region because of
the high CO
2
backpressure at such tem-
peratures. In other words, the solvent is
nearing saturation toward the bottom of
the absorber. However, throughout the
rest of the absorber, the CO
2
concentra-
tion continues to fall exponen-
tially. Since the CO
2
concen-
tration in equilibrium with the
lean amine is less than 1 ppmv,
the absorber is far from being
lean-end pinched.
Sensitivity to operating
parameters. If the absorber
goes off-specification, then re-
medial action must be taken.
There are several candidates for
control variables, the most obvious being
lean solvent flowrate, lean solvent temper-
ature and regenerator reboiler duty. This
absorber is sized for only 60% of flood.
Therefore, the solvent rate might be an
excellent control variable, at least in terms
of tower hydraulic capacity (provided, of
course, that pumps have been adequately
sized). The regenerator reboiler duty, on
the other hand, is a poor control variable
because treating is almost independent of
lean loading (provided that the loading is
low enough). FIG. 5 shows the lack of sensi-
tivity of treating to lean loading. As shown
in FIG. 5, a 15% increase in reboiler duty
results in a lean loading reduction of only
0.0036 loading units, and this decreases
CO
2
in the treated gas by only 2 ppmv.
Lean solvent temperature is the final
control variable considered. As the lean
amine temperature is increased, tempera-
ture increases are expected throughout
the column. A higher-temperature sol-
vent is unable to hold as much acid gas as
a low-temperature one. In other words, its
net loading decreases. This is shown in
FIG. 6, where the CO
2
level in the treated
gas and the net solvent loading are shown
side by side. The rich loading remains
constant between 100F (37.8C) and
R
i
c
h

l
o
a
d
i
n
g
0.40
C
O
2

i
n

t
r
e
a
t
e
d

g
a
s
,

p
p
m
v
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
0.42
0.44
0.46
0.48
0.50
100 110 120 130 140 150 100 110 120 130 140 150
Lean amine temperature, F Lean amine temperature, F
FIG. 6. Net solvent loading and response of CO
2
in treated gas to lean amine temperature.
590 MMBtu/hr
680 MMBtu/hr
C
O
2

i
n

t
r
e
a
t
e
d

g
a
s
,

p
p
m
v
0
5
10
15
20
25
30
35
0.005 0.01 0.015 0.02 0.025 0.03 0.035
Lean amine CO
2
loading
FIG. 5. Insensitivity of CO
2
in treated gas to
lean amine loading, and reboiler heat duty.
8
90 100 110 120 130 140 150 160 170 180 190
Gas temperature, F
7
6
5
4
D
i
s
t
a
n
c
e

f
r
o
m

t
o
p

o
f

p
a
c
k
e
d

b
e
d
,

m
3
2
1
0
8
0.001 0.01 0.1 1 10 100
CO
2
in gas, mol%
7
6
5
4
D
i
s
t
a
n
c
e

f
r
o
m

t
o
p

o
f

p
a
c
k
e
d

b
e
d
,

m
3
2
1
0
FIG. 4. Temperature and CO
2
concentration profiles in gas across the absorber.
What is the best way to control the absorber when
the lean amine is too warm? The answer is fairly simple:
Manipulate the variable that will increase the solvent
capacityi.e., its net loading capacity.
LNG
75
126F (52.2C), regardless of the lean
amine temperature, because the solvent
under those conditions is able to absorb
virtually all of the CO
2
(at approximately
the 20-ppmv level).
However, at or above 126F, the rich
loading begins to drop with increasing
temperature. The ability of the solvent
to load up with CO
2
is compromised
as it becomes too hot, and what cannot
be absorbed must leave in the exiting gas.
Therefore, the treated gas quality suffers
very severely. The effect is noticeable
when dealing with ppm specifications on
the treated gas.
It is instructive to examine how treat-
ed gas composition changes with lean
amine temperature in more detail. FIG. 7
is a replot of FIG. 6 (b) on a logarith-
mic basis to magnify the region where
treating fails. The design temperature is
115F (46C). As long as the tempera-
ture is kept within 10F (5C) of the de-
sign point, the plant appears to maintain
operational stability.
However, as FIG. 7 shows, once the lean
amine temperature approaches 125F
(52C), the absorber will become ex-
tremely unstable; indeed, it will become
inoperable. As already discussed, the rea-
son for this significant sensitivity to an
operating condition has to do with the
capacity of the solvent; part of the CO
2
in
the raw gas cannot be absorbed because
of a solvent capacity limit, and so it pass-
es directly into the treated gas. Continu-
ing to decrease the solvent temperature,
however, does not result in continued im-
provement to treated gas quality. Eventu-
ally, it starts to have a deleterious effect
because the solvent viscosity is increas-
ing with decreasing temperature, and
because mass-transfer resistance to CO
2

absorption starts to increase.
The remaining question is: What is
the best way to control the absorber when
the lean amine is too warm? The answer is
fairly simple: Manipulate the variable that
will increase the solvent capacityi.e., its
net loading capacity. The choices are lim-
ited. Increasing solvent strength is always
C
O
2

i
n

t
r
e
a
t
e
d

g
a
s
,

p
p
m
v
1
10
100
1,000
10,000
100,000
100 110 120 130 140 150
Lean amine temperature, F
FIG. 7. Extreme sensitivity of CO
2
in treated
gas to lean amine temperature.
TABLE 3. Study case: LNG feed gas
to the CO
2
absorber
Temperature, C 46
Pressure, barg 54
Volume ow, kNm
3
/h 1,400
Composition, dry basis
CO
2
, mol% 16
Methane, mol% 79
Ethane, mol% 3
Propane, mol% 1
Butane, mol% 0.5
Other, mol% 0.5
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LNG
an option, but it is not a control strat-
egy. Producing a leaner solvent would be
completely ineffective because lean load-
ing has only a tiny effect on net loading
capacity; in no sense is it controlling. Sol-
vent flowrate, on the other hand, directly
affects the solvents capacity for CO
2
; this
is the only short-term control variable
that would be significantly effective.
TAKEAWAY
The operating LNG facility is ame-
nable to simulation using the proprietary
simulators mass-transfer-rate-based ap-
proach. The simulation is predictive, re-
quiring no estimates or other input be-
yond what is available from data sheets,
piping and instrumentation diagrams,
and vendor drawings and specifications
for tower internals. All temperatures were
matched to thermocouple calibrations,
and the simulated lean solvent loading
was almost identical to measured data.
The discrepancy in treated gas CO
2
con-
tent was easily explained and accounted
for by a small amount of foaming suspect-
ed to be occurring in the absorber.
The study case LNG unit appears to
be quite sound and operationally stable,
but with the proviso that the lean amine
temperature must be kept between 100F
and 125F. If there is any doubt that this
can be achieved throughout the year
(which may not always be the case in the
region for this study case), then adequate
provision must be made for operating
at increased solvent flow. This contin-
gency requires adequate design margin in
pumps, in heat transfer equipment, and
in the regenerator itself.
The first case study validated the abil-
ity of a proprietary mass-transfer-rate-
based simulator to accurately predict
amine unit performance in LNG produc-
tion. In the second case study, the same
model was used to explore the operability
of a plant still on the drawing board. With-
out using such a simulator, it would not
be obvious that a critical operating tem-
perature exists that cannot be exceeded,
and near which the absorber operation
will become unstable. There may well be
a lower operating temperature, although
whether the unit will become unstable at
that temperature is a moot point.
NOTE
a
The proprietary software used in this study is
Optimized Gas Treatings ProTreat simulator.
REFERENCES
1
Weiland, R. H. and N. A. Hatcher, Foundations of
Failure, Hydrocarbon Engineering, 2011.
2
Schultes, M., Researching Rings, Hydrocarbon
Engineering, p. 57, November 2001.
3
Schultes, M., Raschig Super-Ring, Trans. I. Chem.
E., 81A, p. 48, 2003.
RALPH WEILAND received BASc
and MASc degrees in chemical
engineering, as well as a PhD in
chemical engineering, from the
University of Toronto in Canada.
He has been active in basic and
applied research in gas treating
since 1965. Dr. Weiland founded Optimized Gas
Treating (OGT) in 1992, and, in addition to developing
the Windows-based ProTreat process simulation
software with OGT, he also spent 10 years in tray
development with Koch-Glitsch in Dallas, Texas.
JESSE SANTOS is a senior
technical service leader for the
GAS/SPEC Technology Group at
INEOS, where he has provided
design and field support for amine
gas treating units in refineries,
ammonia plants, midstream gas
treating and LNG facilities since 1989. He is also the
global quality leader and the import/export manager
for all GAS/SPEC products. Over the course of his
career, Mr. Santos has also worked for MPR Services
(amine reclamation) and Honeywell/UOP. He earned
a BS degree in chemical engineering from the
University of Texas at Austin, as well as an MBA
degree in operations management from Rice
University. He has published several articles in the
field of gas and liquid treating.
ATTILIO PRADERIO is a principal
process engineer for the
ConocoPhillips Optimized Cascade
LNG process, where he has
provided design and field support
on distillation and absorption since
2005, through the use of rate-
based process simulations. He holds an MSc degree
in gas engineering and management. Mr. Praderio
has published several papers, and he also holds
several international patents.
NILIA MAHARAJ joined Atlantic
LNG after graduating from the
University of the West Indies
in Trinidad and Tobago in 2008
with a BSc degree in chemical
and process engineering. She has
supported HAZOP review projects
and has led plant troubleshooting and plantwide
alarm management teams.
MICHAEL SCHULTES has worked
since 1995 at Raschig GmbH in
Germany, providing engineering
technology to the chemical,
petrochemical, refinery and
environmental industries. As
technical director, he is responsible
for the manufacture, design and development of
trayed and packed columns worldwide, and he holds
various international patents. In 2005, he was
awarded a professorship at the Ruhr-Universitt
Bochum for his ongoing research activities.
DUNN HEAT
EXCHANGERS, INC.
Our facility offers complete services
for shell/tube type heat exchangers
and related process equipment.
Contact:
[email protected]
409-948-1704
281-337-1222
www.dunnheat.com
Texas City, TX 77590
Bonus Report
LNG
P. GUILLEMIN, Eniram, Helsinki, Finland
Maximize LNG carrier efficiency
through integrated optimization
When installing a data collection platform onboard new liq-
uefied natural gas (LNG) carriers, the first step is to gather as
much knowledge as possible about onboard operations. The
results of this data collection help determine vessel efficiency,
which, in turn, assists owners in maximizing ship efficiency
and operations.
Todays LNG carriers are amazing feats of engineering (FIG. 1).
The ship cargo is extremely dangerous because of its highly
flammable properties. Furthermore, the dual-fuel/tri-fuel en-
gines used, as well as the occasional presence of reliquefication
plants, make these vessels among the most complex floating en-
gineering projects in the world.
The transport of LNG can be compared to running with a
full soft drink can in a backpack. When the can is shaken, some
of its contents will vaporize as CO
2
, which increases the cans
internal pressure. A similar process occurs in a tank filled with
LNG, although the somewhat inert gas is replaced with a variety
of different natural gases [i.e., boiloff gas (BOG)]. The increas-
ing pressure must be relieved by releasing gas from the tank.
LNG tank design. LNG tanks are extremely well insulated
to limit the BOG that naturally occurs after a cargo is loaded.
Typically, the cargo is loaded at an approximate temperature of
170C. However, despite the insulation, a small percentage of
the LNG cargo is converted to gas during each day of a sea voy-
age. The size of the percentage will depend on the efficiency of
the insulation and the weather patterns en route.
Improvements in insulation and clever engineering have
increased storage effectiveness. A small number of LNG ves-
sels are now equipped with reliquefication plants that are able
to reliquefy the excess BOG and return it to the tanks, making
these ships more environmentally efficient. For the majority of
vessels not equipped with reliquefication plants, the excess gas
can be used for running vessel engines or boilers. In practice,
however, LNG carrier operations are more complicated than
this description suggests.
Transport challenges. Rough seas are part of the scenario.
These types of sea states can behave exactly like the example
of a soft drink can in a backpack, jostling the cargo about and
increasing the pressure in the tanks. On one of the authors
recent LNG carrier trips, the ship encountered not one but
two typhoons. Typhoons Francisco and Lekima kept the of-
ficers and crew on alert, but the ship was able to sail through
the storms without any problems. Some of the excess gas was
used in the engines; the rest was reliquefied. In this type of
situation, older LNG ships may have been forced to burn the
fuel without using it.
Complex vessels should be matched with sophisticated,
yet easily understood, data-gathering solutions. The first step
of the process is data integration. Data is collected from the
various automated systems already installed onboard, as well as
from proprietary sensors. Readings are also received from other
equipment located on the bridge or in the cargo control room.
Monitoring carrier operation. This deep integration is
necessary to obtain the highest level of accuracy regarding the
FIG. 1. Todays LNG carriers represent considerable feats of
engineering. Photo courtesy of Eniram.
FIG. 2. Speed log device errors can be assessed quickly. A clear offset
is seen on the vertical axis, which represents the difference between
speed through water and speed over ground.
LNG
ships physical behavior. Essentially, all of the information be-
ing gathered must be validated. Sensors are attempting to ana-
lyze real phenomena, and trusting such devices should be done
with caution before a proper calibration is performed.
This data can be used to observe how offset a speed log is
(FIG. 2), or to monitor the reading errors of an anemometer,
for example. These actions are essential to understanding the
actual performance of a carrier. They also aid in the modeling
of ship energy usage and in mapping the breakdown of where
energy is consumed. On an LNG vessel, numerous systems
are the source of hundreds of variables. The initial target of a
data collection platform is to make sense of this information,
and to present it in a normalized way.
After the integration of all sensors and variables, both the
onboard and onshore systems are automatically synchro-
nized. This is the second step of the process. Modeling takes
into account a wide variety of variables, such as fuel flowme-
ters, navigation equipment, engines and reliquefication plant
usage. The speed profile, for example, requires automatic up-
dates based on the latest sea current and wind data available
onshore. No additional work is required from the navigation
officer to import the data, and yet it is achievable in real time.
Measurements performed onboard will also be taken into
account to better reflect the forecast measurements provided
from onshore. Forecast and data share one simple fact: taken
alone, the flow coming out of a device or data source is only as
reliable as the device or the forecast itself. Ship-wide integration
of a platform can help put into context all of that information, as
in the speed log example.
The third step of the process is the actual data crunching to
provide the optimum guidelines typically seen on the display.
Onboard and onshore dedicated calculation servers are provid-
ed to improve the accuracy of the optimums.
Successful integration. During the installation of the system
described earlier, the weather threatened to delay the carriers
arrival to the next port. However, the integrated system enabled
the rapid approximation of an estimated time of arrival, taking
into account all of the effects of the rough weather and its en-
ergy cost. Engineers could then use the prediction regarding the
required energy necessary to reach the next port as close to the
original schedule as possible.
Officers and engineers aboard an LNG carrier are extremely
busy. They require real-time, user-friendly data derived from
the vessels systems, as well as accurate individual metrics. Max-
imizing fuel efficiency should not trump other tactical, on-the-
spot decisions needed to ensure that the ship continues to sail
as safely as possible with its strategic cargo.
PIERRE GUILLEMIN leads the development team for Enirams
onshore and onboard platforms. As an enthusiast builder, he has
a broad experience in converting ideas into usable, concrete
technologies. Prior to Eniram, Mr. Guillemin spent most of his
career in startup companies in the data crunching field, from
search engine development to crowdsourcing services. He holds
an MEng degree in computer science from ESIEA Paris in France.
November 45, Houston, Texas | WGLConference.com
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HPI Focus
Changing HPI Economics
C. MOFFATT, S. HODGE and D. COOK, BP Downstream
Technology, Conversion Technology Center, Hull, UK
Ethanol-to-ethylene process provides
alternative pathway to plastics
Tight operating margins make the ethanol-to-ethylene
technology marketplace a challenging space in which to com-
pete. However, a new, second-generation route can deliver
market-leading conversion efficiency at lower cost and com-
plexity than existing technologies.
The combination of a proprietary catalyst and milder op-
erating conditions is ultra-selective toward ethylene. More
than 24,000 hours of pilot-plant testing has been completed
to demonstrate this new technology.
Technology overview. Ethanol is dehydrated to form ethyl-
ene and water over a supported heteropolyacid (HPA) catalyst.
The reaction takes place in two steps:
1. Partial dehydration to diethyl ether and water,
which occurs quickly under the optimized
operating conditions
2. Slower dehydration of the ether to produce ethylene.
In addition to ethylene, only a very small amount of by-
products, including ethane and hydrocarbons up to C
5
, are
generated. FIG. 1 shows a simplified process flow diagram of
the second-generation ethanol-to-ethylene technology.
The feed ethanol may require pretreatment, depending on
its quality. Feed ethanol is then mixed with the recycle stream
containing diethyl ether, ethanol and water (at a controlled
composition, such as the azeotrope). This mixed stream
is then vaporized and passed to the fixed-bed reaction sec-
tion. Upon exit of the reaction section, the process stream is
cooled before being fed to the separation stages. The ethylene
is separated from unreacted ethanol, any product water and
the intermediary diethyl ether. Ethanol is recovered from the
ethanol and water mix in another column. The ethylene prod-
uct is taken from the column overheads in the vapor phase,
and the vapor is compressed and polished to meet polymer-
grade specifications.
Ethylene produced in a pilot plant has been tested for po-
lymerization activity at an independent laboratory. It showed
no discernible difference in comparison to a conventional
polymer-grade ethylene feed. Several physical characteriza-
tion studies have also been performed on the polyethylene
(PE) produced from these tests.
Second-generation technology advantages. First-
generation ethanol dehydration technologies typically use
alumina-based catalysts at high temperatures (315C460C)
and low pressures (typically less than 5 bar). These reaction
conditions favor a high ethanol conversion, although a lower
ethylene selectivity is achieved. In this second-generation
technology, the catalyst can achieve ultra-selectivity at milder
temperatures. In an operating envelope of 200C270C and
5 bar20 bar, the ethylene selectivity is in excess of 99%. This
advantage is outlined in FIG. 2.
When polymer-grade ethylene is required from a first-
generation technology, ethane formed in the reaction section
must be separated from the crude ethylene. Ethane and ethyl-
ene have similar physical properties, so this separation must
be undertaken at a high pressure and a low temperature. This
unit operation is commonly referred to as a C
2
splitter.
The use of a C
2
splitter is not required with second-gener-
ation technology because of its ultra-selectivity and very low
ethane make. The lower-pressure operation of first-generation
technologies also requires significantly greater compression for
the sub-zero refrigerated separation of ethane from ethylene.
The higher reaction pressure applied in the second-gen-
eration process reduces the amount of compression required
prior to product purification. Furthermore, the ultra-selective
nature of the catalyst reduces the volume of byproducts that
must be removed, which eliminates the requirement for a C
2

Ethylene
product
Minor
impurities
Water
Purication
Dewatering
Reaction Vaporization
Process
recycle
Ethanol
feed
Cleanup
Primary
separation
FIG. 1. Simplified process flow diagram of second-generation
ethanol-to-ethylene technology.
splitter, a CO stripper and CO
2
removal technology, such as a
caustic wash. Significant operating cost savings can also be re-
alized. Higher ethylene selectivity delivers improved ethanol
utilization while reducing energy requirements.
The first-generation technology flowsheet becomes sig-
nificantly more capital-intensive in comparison to the second-
generation process when the combination of higher operat-
ing temperature, increased compression costs and sub-zero
refrigerated separation are considered collectively. The sec-
ond-generation technology enables production of ethylene
to polymer-grade specification, with cost advantages for both
capital and operating costs relative to existing technologies.
Proprietary catalyst development. Employment of a
supported HPA catalyst at a comparatively low temperature
of operation (200C270C) leads to a highly active catalyst
that is ultra-selective, giving greater than 99% carbon selectiv-
ity to ethylene.
The differentiated catalyst performance has been proven in
a fully recycling pilot plant. This plant was commissioned in
2009 and comprises all of the key unit operations of a com-
mercial-scale plant, including a refrigerated, rather than cryo-
genic, ethylene polishing column. FIG. 3 highlights the steps
taken to ensure that the pilot plant delivers a consistently
strong performance (TABLE 1).
To date, over 24,000 hours of testing have been completed,
leading to the development of an operating regime where the
catalyst is robust during startup, shutdown and continued
steady-state operation for a catalyst life in excess of two years.
The application of an HPA catalyst in this operating envelope
ensures that there is no requirement for decoking to regener-
ate the catalyst surface.
Bioethanol feed pretreatment. Bioethanol is sourced from
a range of materials and can contain a wide variety of trace
components/contaminants (FIG. 4). These entities can have
significant impacts on the acid catalysts used for ethanol dehy-
dration in terms of catalyst life and byproduct chemistry.
Using extensive analytical capability, analyses of over 50
bioethanol samples from various sources and locations have
been tested to prove the robust feed flexibility of the second-
generation technology and enable a thorough understanding
of the potential contaminants that may be present. This tech-
nology offer is enhanced through the development of a suite of
feed cleanup technologies. These contaminants will generally
degrade the performance of any dehydration catalyst. Extensive
know-how has been developed on these issues, and a simple and
inexpensive tool kit of cleanup solutions can be readily installed.
Ethanol-to-ethylene chemistry. The dehydration of etha-
nol to ethylene occurs via diethyl ether as an intermediate. The
overall endothermic reaction is represented in Eq. 1:

(1)

C
2
H
5
OHC
2
H
4
+H
2
O H
r
=43,660
kJ
mol

The first step of the reaction is the fast, exothermic, partial
dehydration to diethyl ether and water (Eq. 2):

(2)

2C
2
H
5
OHC
2
H
5
OC
2
H
5
+H
2
O H
r
=11,270
kJ
mol

The second phase of the reaction sequence is the slower de-
hydration of diethyl ether to give ethylene (Eq. 3):

(3)

C
2
H
5
OC
2
H
5
C
2
H
4
+C
2
H
5
OH H
r
=54, 930
kJ
mol

The reaction conditions have a significant bearing on both
the ethanol conversion and, subsequently, on the ethylene
selectivity. Depending on the chosen conditions, varying de-
grees of byproducts can be produced that can have a large in-
fluence on the configuration of the ethylene purification unit
operations required to meet the desired product specification.
Global ethylene market. Ethylene is one of the most impor-
tant intermediates in the petrochemical industry. Global de-
mand for ethylene is expected to increase by 4% per year, with
total market demand exceeding 145 million metric tons by 2015.
Conventionally, the most common method for ethylene
production is via the steam cracking of a petroleum-based feed-
stock. It is a fundamental building block in the manufacture of
derivatives such as PE, ethylene oxide and ethylene dichloride.
FIG. 5 shows projected demand for ethylene derivatives in 2015.
PE products [linear low-density PE (LLDPE), low-density
PE (LDPE) and high-density PE (HDPE)] are expected to
dominate demand.
Second-generation
technology
200C270C
Typical rst-generation
technology,
315C460C
High temperature,
low pressure
C
a
r
b
o
n

s
e
l
e
c
t
i
v
i
t
y
,

%
94 94
96 96
98 98
100 100
Operating conditions
Low temperature,
high pressure
FIG. 2. Selectivity advantages from the proprietary catalyst,
in comparison to conventional technology.
TABLE 1. Pilot plant data vs. polymer-grade ethylene
specications
CO CO
2
H
2
Inerts* C
3
H
6
Polymer spec, ppm 1 2 5 1,000 20
Pilot plant data
*Sum of methane and ethane
Evolution of ethanol-to-ethylene
technology. Ethanol dehydration is by
no means a new concept; it dates back
to 1795, when Dutch chemists first de-
scribed the process. It was practiced in-
dustrially in the US and Western Europe
in the first half of the 20th century be-
fore being displaced by petroleum-based
sources. Some limited success was found
in Brazil and India in the 1950s and
1960s, respectively, based on local bio-
ethanol supplies.
When crude oil prices fell in the
1980s and 1990s, the economics of
ethanol-to-ethylene technology became
highly challenged. However, the upward
trend in crude oil prices in recent years,
combined with growing demand for re-
newable materials, has rekindled interest
in ethanol-to-ethylene technology.
Green ethylene production. The
production of chemicals and polymers
from renewable sources is a focus area
for global research and development.
Specific attention is being paid to etha-
nol dehydration utilizing bioethanol derived from feeds such
as corn, sugar cane or lignocellulosic biomass.
These feedstocks have the advantage of removing CO
2
from the atmosphere through photosynthesis, which serves
to reduce the greenhouse gas (GHG) lifecycle emissions of
the ethylene production process. FIG. 6 compares ethylene
production from bioethanol
15
(average of Brazilian sugar
cane and US maize feedstock) and from fossil fuel

sources,
6, 7

such as naphtha.
The GHG benefits of ethylene derived from bioethanol
become clear when sequestration and other credits are tak-
en into account. For example, electricity-related credits are
increasing as improved cogeneration technologies become
available to feedstock processing mills. This trend will con-
tinue as more developments are made.
An overall lifecycle emissions advantage of approximately
3.65 kgCO
2
/kgC
2
H
4
is estimated in favor of bioethylene on
a like-for-like basis, compared with naphtha-based ethylene
at the factory gate. Note: Some variability of CO
2
emissions
exists, depending on which bio-derived source is chosen to
produce the ethanol feedstock.
Recent commercial developments in this area highlight the
variety of applications for which bioethanol can be used. In
2008, Brazils largest petrochemical company, Braskem, devel-
oped the worlds first internationally certified linear PE made
from 100% renewable materials.
8
The ethylene monomer de-
rived from bioethanol dehydration is chemically identical to
the monomer produced via the petrochemical route. Similarly,
polymers obtained from green ethylene have the same prop-
erties and characteristics as petrochemical-derived polymers.
Also, Coca-Cola has been developing specialized bottle
packaging that uses bioethylene-derived monoethylene gly-
col (MEG) to make PE-terephthalate (PET) bottles.
9
Coca-
Cola will continue to make investments in its bottle technol-
ogy, and it aims to use the new packaging for the companys
entire virgin PET supply by 2020.
9
If other companies follow
this example, the opportunities available within bioethylene
derivatives may represent an exciting prospect for the future.
Ethanol-to-ethylene technology may be an interesting op-
tion for ethylene derivative manufacturers that are remote
from world-scale ethylene infrastructure, or for small-scale
capacity additions. In such situations, the low capital intensity
of ethanol dehydration, together with the increasing availabil-
ity of bioethanol, may make ethanol-to-ethylene an attractive
niche solution for ethylene production.
The flexibility of the process makes it equally applicable to
synthetically derived ethanole.g., coal-derived syngasor
other emerging routes to ethanol production.
FIG. 4. A wide range of feedstocks can be used in the production of bioethanol.
Ethylene oxide
15%
EDC, 10%
Ethylbenzene, 6%
Alpha olens, 3%
LLDPE, 18%
LDPE, 14%
HDPE, 14%
Vinyl acetate, 1%
Others, 4%
2015 ethylene derivatives demand
FIG. 5. Projected global demand for ethylene derivative products
in 2015. Source: IHS Chemical.
FIG. 3. Timeline of technology development.
84
Takeaway. This second-generation process offers several
compelling benefits relative to existing technologies, enabling
more opportunities for the commercialization of ethanol de-
hydration technology.
The higher ethylene selectivity at lower cost and complex-
ity, with a large feedstock flexibility, allows maximum value
to be extracted from the ethanol feed. The second-generation
technology creates a polymer-grade ethylene product, which
is a crucial building block in providing an alternative pathway
to the manufacture of conventional plastics.
NOTE
BP has taken the ethanol-to-ethylene process from inception to commercial-
ization since 2004. BP owns the process patents for this technology, which was
announced on November 7, 2013.
LITERATURE CITED

1
Khatiwada, D., J. Seabra, S. Silveira and A. Walter, Accounting greenhouse gas
emissions in the lifecycle of Brazilian sugar cane bioethanol: Methodological
references in European and American regulations, Energy Policy, Vol. 47, pp.
384397, 2012.

2
Cavalett, O., T. L. Junqueira, M. O. S. Dias, C. D. F. Jesus, P. E. Mantelatto,
M. P. Cunha, H. C. J. Franco, T. F. Cardoso, R. M. Filho, C. E. V. Rossell and
A. Bonomi, Environmental and economic assessment of sugar cane first-
generation biorefineries in Brazil, Clean Techn Environ Policy, Vol. 14, pp.
399410, 2012.

3
Macedo, I. C., J. E. Seabra and J. E. Silva, Greenhouse gases emissions in the
production and use of ethanol from sugar cane in Brazil: The 2005/2006
averages and a prediction for 2020, Biomass and Bioenergy, Vol. 32, pp.
582595, 2008.

4
Seabra, J., GHG balance of ethanol production in Brazil, Unicamp
Presentation, 2010.

5
De Oliveira, M. E. D., B. E. Vaughan and E. J. R. Jr., Ethanol as fuel: Energy,
carbon dioxide balances, and ecological footprint, BioScience, Vol. 55, No. 7,
pp. 593602, 2005.

6
PlasticsEurope, Ethylene, propylene, butadiene, pyrolysis gasoline, ethylene
oxide (EO), ethylene glycols (MEG, DEG, TEG), 2012.

7
Liptow, C. and A.-M. Tillman, Comparative lifecycle assessment of poly-
ethylene based on sugar cane and crude oil, Chalmers University of
Technology, 2009.

8
Worlds first green linear polyethylene launched, Royal Society of
Chemistry, March 31, 2008.

9
McTigue Pierce, L., Coca-Cola to develop 100% renewable PlantBottles on
global scale, Packaging Digest, December 14, 2011.

10
Patel, M., M. Crank, V. Dornburg, B. Hermann, L. Roes, B. Husing, L.
Overbeek, F. Terragni and E. Recchia, Medium- and long-term oppor-
tunities and risks of the biotechnological production of bulk chemicals
from renewable resources, European Commission GROWTH Programme,
Utrecht, The Netherlands, 2006.
CRAIG MOFFATT is a process engineer on BP Conversion
Technology Centers Licensing and Projects team. He joined
BP in 2011 and has worked in Fischer-Tropsch technology
development, and as a process engineer in operations on a
world-scale syngas facility in Hull. Since 2013, he has been
working on the commercialization of BPs ethanol dehydration
technology. Mr. Moffatt holds an MS degree in chemical
engineering from the University of Strathclyde in Glasgow, Scotland.
STEVE HODGE is a technology manager at BPs Hull Research
and Technology Center. He joined BP in 1986 with a degree in
natural sciences and a PhD in organometallic chemistry from
the University of Cambridge in Cambridge, UK. During his time
with BP, Dr. Hodge has worked in a wide variety of research
areas, including developing new speciality chemicals and
solvents. Recently, he has been responsible for leading the
development of new chemical process technologies from laboratory-scale
through commercialization. These developments include new catalysts, the
design and operation of pilot-scale facilities, commercial catalyst scale-up and
transferring technology to commercial operation.
DARREN COOK is the technology team leader for the
development of ethanol dehydration technology in the
Conversion Technology Center at BPs Hull Research and
Technology Center. He graduated from Imperial College in
London with a BSc degree in chemistry and a PhD in
organometallic synthesis. He worked for two and a half years
as a post-doctoral researcher in catalysis prior to joining BP
in 2000. In his 14 years at BP, Dr. Cook has gained experience in a range of roles
focused on the development and deployment of new downstream technologies.
These roles include process development chemistry and experimental catalysis,
technical service, new technology assessment, and technology planning and
strategy. In addition, he has worked in business marketing, commercial contract
negotiations, business development and project management. He has also
served as the lead on a number of high-profile technology collaborations.
Fossil route
-3.5 -3.0 -2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5
-3.65 kgCO
2
/kgC
2
H
4
GWP, kgCO
2
e/kgC
2
H
4
Note: Black diamond markers indicate totals once credits have been substracted.
Naphtha-based ethylene
Bioethanol
E2E
Sequestration credits
Bio route
FIG. 6. Average estimated GHG emissions for both ethylene
manufacturing routes, from cradle to gate, including sequestration
credits.
10
HELEN MECHE, ASSOCIATE EDITOR
[email protected]
Events
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Houston, Texas
P: +1 (919) 549-8411
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API 2014 Fall Committee
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AFPM Environmental Conference,
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Gasification Technologies
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Technologies Conference,
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P: +1 (703) 276-0110
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dmg events, Gas Asia Summit
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Gulf Publishing Company
Events
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American Fuel
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F: +1 (202) 457-0486
[email protected]
www.afpm.org/Conferences
American Institute of
Chemical Engineers (AIChE)
P: +1 (203) 702-7660
F: +1 (203) 775-5177
[email protected]
www.aiche.org
American Petroleum
Institute (API)
P: 1+ (202) 682-8000
[email protected]
www.api.org
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The first number after the company name is the page on which an advertisement appears. The second number, appearing in parentheses, after the company
name, is the Reader Service Number. There are two ways readers can obtain product and service information:
1. Go to www.HydrocarbonProcessing.com/RS. Follow the instructions on the screen, and your request will be forwarded for immediate action.
2. Go online to the advertiser's Website listed below.
Bret Ronk, Publisher
Phone/Fax: +1 (713) 520-4421
www.HydrocarbonProcessing.com
SALES OFFICESNORTH AMERICA
IL, LA, MO, OK, TX
Josh Mayer
Phone: +1 (972) 816-6745, Fax: +1 (972) 767-4442
AK, AL, AR, AZ, CA, CO, FL, GA, HI, IA, ID, IN,
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SD, TN, TX, UT, WA, WI, WY,
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Bret Ronk
Phone/Fax +1 (713) 520-4421
CT, DC, DE, MA, MD, ME, NC, NH, NJ, NY, OH,
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Merrie Lynch
Phone: +1 (617) 357-8190, Fax: +1 (617) 357-8194
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DATA PRODUCTS
Lee Nichols
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SALES OFFICESEUROPE
FRANCE, GREECE, NORTH AFRICA, MIDDLE EAST,
SPAIN, PORTUGAL, SOUTHERN
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Catherine Watkins
Tl.: +33 (0)1 30 47 92 51
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ITALY, EASTERN EUROPE
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RUSSIA/FSU
Lilia Fedotova
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UNITED KINGDOM/SCANDINAVIA,
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AUSTRALIAPerth
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Phone: +61 (8) 9332-9839, Fax: +61 (8) 9313-6442
CHINAHong Kong
Iris Yuen
Phone: +86 13802701367, (China)
Phone: +852 69185500, (Hong Kong)
BRAZILSo Paulo
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Phone/Fax: 11 23 37 42 40
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Manav Kanwar
Phone: +91-22-2837 7070/71/72, Fax: +91-22-2822 2803
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INDONESIA, MALAYSIA, SINGAPORE,
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Peggy Thay
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Phone: +65 6836-2272, Fax: +65 6634-5231
JAPANTokyo
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REPRINTS
Rhonda Brown, Foster Printing Service
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Company Page RS#
Website
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Website
Aggreko .............................................................. 61 (90)
www.info.hotims.com/50998-90
Altra Industrial Motion .......................................... 16 (153)
American Petroleum Institute .............................. 44 (159)
Ametek Process Instruments ................................ 42 (158)
Axens ..................................................................92 (51)
BASF Corporation .................................................28 (70)
BilFinger Water Technologies S.A.S. ....................... 13 (55)
Borsig GmbH .......................................................73 (166)
Burckhardt Compression Ag .................................. 17 (79)
Carver Pump Company ........................................ 46 (160)
Clariant ............................................................... 14 (152)
Compressor Controls............................................ 20 (69)
DeltaValve, A Curtiss Wright Company ................... 12 (151)
Dunn Heat Exchangers ..........................................76 (168)
Eastman Chemical Company .................................79 (75)
Farris Engineering ................................................36 (58)
Flexitallic LP ......................................................... 5 (93)
Flir Systems, Inc ...................................................75 (167)
GEA Heat Exchangers ............................................63 (80)
Gulf Publishing Company
Construction Boxscore Database ....................... 89
EventsECF .................................................... 80
EventsGasPro ............................................... 69
EventsGTL ...................................................67
EventsWGLC ..................................................78
Marketplace ...............................................8687
Haldor Topsoe A/S ................................................ 15 (103)
Hermetic Pumpen GmbH ......................................32 (156)
Hytorc ................................................................ 54 (162)
Invensys ..............................................................22 (96)
Kobe Steel Ltd ......................................................39 (81)
Linde Process Plants ............................................. 91 (82)
Merichem Company ............................................. 34 (84)
OHL .....................................................................67 (165)
Paharpur Cooling Towers, Ltd. .............................. 40 (95)
PARCOL SpA ......................................................... 19 (154)
Pentair ................................................................24 (155)
Philly Gear ...........................................................33 (60)
Pittsburgh Corning Corporation .............................57 (163)
Quest Integrity Group LLC......................................38 (157)
Rentech Boiler System ........................................... 5 (52)
Saint-Gobain NorPro ............................................ 18 (106)
Servomex Ltd.......................................................53 (161)
Siemens Energy International ................................ 8 (68)
Sulzer Chemtech, USA Inc. .....................................25 (88)
Trachte USA ........................................................ 84 (169)
UOP LLC ...............................................................26
Veolia Water Solutions & Technologies .................. 43 (71)
Wood Group Mustang ...........................................58 (164)
Zeeco ................................................................. 30 (94)
ZymeFlow Decon Technology ................................47 (92)
This Index and procedure for securing additional information is provided as a service to Hydrocarbon Processing advertisers and a convenience to our readers. Gulf Publishing Company is not responsible for omissions or errors.
www.ConstructionBoxscore.com
Welcome to the NEW
Construction Boxscore Database
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ARKET INTELLIGENCE FOR THE GLOBAL REFINING,
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Project details on thousands of active projects and global
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Advanced search that lters the listings by project type,
scope, region, investment and more
Daily updates for new and newly updated projects
The weekly Boxscore Update e-newsletter with new listings
and trends analysis
For more information, contact:
Lee Nichols, Director, Data Division, at [email protected]
or +1 (713) 525-4626
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People
Sach Sankpal has been
named as president for
Honeywell Safety Products
(HSP), a part of the
Honeywell Automation
and Control Solutions
Life Safety business.
Mr. Sankpal joined
Honeywell in 2010 as vice
president of strategy and
marketing in Honeywell
Life Safety and most
recently led Europe, the
Middle East, Africa and
India for HSP. Prior to
joining Honeywell,
Mr. Sankpal worked at
Avaya, Trimble Navigation
and Navigant Consulting.
He brings over 20 years
of diversified general
management experience,
with leadership roles
held in strategy,
marketing, finance,
operations and sales.
AMEC has appointed
Jeff Reilly as group
president of strategy and
business development.
He will be a member of the
AMEC Group Management
Team, reporting to CEO
Samir Brikho, and will
be based in Houston,
Texas. Mr. Reilly joins
AMEC from Phillips 66,
where he led the projects
organization and was
chief procurement officer.
He started his career
with Stone & Webster
Engineering Corp. as a
chemical process design
engineer and developed
there and at ABB Lummus
Global, advancing to
company vice president at
both of these engineering
and construction
organizations. He joined
ConocoPhillips in 2005.
Gerhard Baumann is the
new managing director
for Brookfield GmbH,
headquartered in Lorch,
Baden-Wuerttemberg,
Germany. Located near
Stuttgart, this office
manages all sales and
service for Brookfield
laboratory customers in
Germany. Mr. Baumann
takes responsibility for
the full line of Brookfield
laboratory instruments
including viscometers,
rheometers, circulating
water baths, texture
analyzers and powder
flow testers. He has
worked for various
companies in the chemical
industry, providing both
inside sales and field
service. Most recently,
Mr. Baumann spent
eight years managing
a company selling
laboratory equipment.
Concoa has named
Damion Angell as
sales manager for
Concoa Europa,
based in Utrecht, The
Netherlands. Responsible
for spearheading new
precision gas control
markets in Europe,
Eastern Europe,
Scandinavia, the Middle
East and North Africa,
Mr. Angell takes charge
of product development,
marketing, account
service and developing
business globally for the
company. He has a degree
in mechanical engineering
from the University of
Portsmouth, England.
CONCOA was founded
in Virginia Beach,
Virginia, in 1987.
Drger has appointed
Daniel ONeill to head
up sales of its fire and
gas systems across the
UK and Ireland. He joins
Drger from gas specialist
StG, where he was
responsible for devising
and implementing the
companys global sales
strategy. Prior to that,
Mr. ONeill worked for
more than a decade at
Air Liquide in a variety
of international senior
management roles. He will
now be responsible for
the sale and installation
of Drgers extensive
portfolio of fixed fire and
gas detection systems
into a broad range of
industries with potential
for toxic or flammable
environments, including
the petrochemical, utilities
and manufacturing sectors.
Exxon Mobils board of
directors has elected
Jack P. Williams and
Darren W. Woods to the
positions of senior vice
president and members
of the management
committee. Mr. Williams,
currently executive vice
president of ExxonMobil
Production, will also
become a vice president of
the corporation. Mr. Woods
is currently president of
ExxonMobil Refining and
Supply. They will join
ExxonMobil CEO Rex
W. Tillerson and senior
vice presidents Mark W.
Albers, Michael J. Dolan
and Andrew P. Swiger
on the committee. The
assignments will assure
committee continuity,
the company said.
Vimal Kapur has been
named president of
Honeywell Process
Solutions (HPS), a
Honeywell business that
supplies automation
control, instrumentation
and services to process
manufacturers. A 30-year
veteran of the process
automation industry,
Mr. Kapur has been with
Honeywell for more than
25 years. He has held a
number of key strategic
business positions within
Honeywell, including
vice president of global
marketing and strategy
for HPA and managing
director for Honeywell
Automation India, Ltd.
(HAIL). Prior to this
appointment, he was
vice president/general
manager of the advanced
solutions line of business
for HPS. Mr. Kapur
graduated from Thapar
Institute of Engineering
in Patiala, India, as an
electronics engineer
with a specialization in
instrumentation. He is Six
Sigma certified and will be
located in Houston, Texas.
Cummins has promoted
Dana Vogt to vice
president of manufacturing
for the companys heavy
duty, mid-range and light
duty diesel business. In his
new role, Mr. Vogt will have
global responsibility for
all manufacturing plants,
supply chain design and
global enterprise quality.
Mr. Vogt served previously
as Cummins executive
director for enterprise
quality and joint venture
manufacturing.
Aggreko has appointed
Chris Weston as CEO.
Mr. Weston is currently
managing director of
international downstream
at Centrica plc, where
he is an executive director
running the groups
largest division. In this
role, he is operationally
responsible for both
British Gas in the UK and
Direct Energy in the US,
with revenues of $36.8
billion (B), profits of
$2.2 B and over 35,000
employees. He is expected
to join Aggreko next year
once he has completed
his commitments at
Centrica. Angus Cockburn,
Aggrekos interim CEO,
will continue in this role
until later in the year.
John Mack, a former chief
executive and chairman
of Morgan Stanley, has
decided to leave the
board of Russias top
oil producer, Rosneft,
the Kremlin-controlled
company said in a news
release. Rosneft said his
decision to leave was
not connected to the US
imposed sanctions on
Rosneft and Russia over
Ukraine, reiterating that
Mr. Mack is leaving for
personal reasons. The
company also said that
Artur Chilingarov has
been proposed to replace
Mr. Mack on the board.
Mr. Chilingarov, a member
of Russias upper house
of the parliament, is best
known as an explorer in
the Arctic, a region seen
as increasingly important
for Rosnefts future as
an oil and gas producer.
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