June 2018

Technology Elevated to the Cloud.

Grounded by Honeywell’s Dependability.

Time to Elevate Introducing Experion® Elevate: real-time

process SCADA delivered as a secure

Your Thinking. and scalable service—for predictable costs,

easy upgrades, and continual support.
We call it Elevate because it takes SCADA
to a higher level.

Connected Industrial
For more information, please visit
www.honeywellprocess.com/elevate
Connected Plant © 2018 Honeywell International Inc.

Connected Worker
 CONTENTS
June 2018 Volume 23 Number 06 ISSN 1468-9340
03 Comment 59 Connection for detection
Duncan Gooch, Honeywell Industrial Safety, explores
05 Guest Comment how bringing wireless connectivity to traditional fixed gas
07 World News detectors can help take plant efficiency to the next level
in the digital age.
14 A new path
Nancy D. Yamaguchi, Contributing Editor, discusses the 63 Prediction with precision
future of Europe’s oil sector. Massimiliano Di Febo, Pasquale Paganini and Alfredo Costa,
IPC, Italy, share CFD simulation tips for the process industry.
23 Optimal operations
Koichi Wada and Tsukasa Shiga, Kobelco Compressors 68 The burning issues
America Inc., USA, outline the importance of selecting the Richard Martin and Matthew Martin, Honeywell UOP
most suitable compressors for use in polyolefin plants. Callidus, discuss the traditional operating issues associated
with radiant wall burners, and a new design which
28 Mirroring a flexible landscape overcomes many of these issues.
Tushar Patel, Atlas Copco Gas and Process, explores how
integrally-geared compressors bring greater agility to NGL 75 A strategy for compliance
recovery. As flaring practices come under increasing scrutiny,
Courtny Edge and Dan Smith, Trinity Consultants, USA,
33 Cutting out contaminants outline how a flaring minimisation assessment can help to
Justin C. Slagle and Donnie Joe Worth, Bryan Research ensure compliance.
& Engineering Inc., USA, along with Jesus Mejorada,
Empire Gas Services LLC, USA, discuss options for 79 Focus on flare pilots
removing methanol from NGL in an amine treater. Clayton A. Francis, Zeeco Inc., USA, discusses the
requirements of modern flare pilot detection systems.
39 Separate to save
Molly Tsipis, Pentair, USA, explains how contaminants in 82 Revamping flare gas analysis
amine systems can be avoided by optimising the process David Fahle, Servomex, USA, explains how plant flares can
with high efficiency separations. reach high levels of efficiency and better comply with
emission standards using continuous gas analysis methods.
43 Accurate amine relief estimations
Ayan Dasgupta, Soumitro Nagpal and Harshit Sharma, 87 Going green
Fluor India, discuss accurate relief load and composition Ilan Toledano, Wattco, Canada, explores how circulation
estimation for amine regenerators. heaters can help the oil and gas industry reduce emissions.
51 Stream separation 90 LNG: an evolving market
Ross Dugas, The Dow Chemical Co., USA, shares how Nimalan Gnanendran and John Baguley, LNG Ltd, Australia,
hydrocarbon separation technology can help with discuss the growth of the LNG market and the future of
cost-efficient C3+ removal from natural gas streams. next generation LNG plants.
55 An accurate measure of quality 95 Capturing the value of LNG
Jake Tivey, Orbital Gas Systems, USA, explains the LNG plants may provide potential for decarbonisation
importance of efficient gas quality measurement for fiscal via carbon capture and storage implementation.
metering in adapting the gas network for the future. Jorge Arizmendi-Sanchez, Ben Eastwood, Costain, along
with Jasmin Kemper, IEA-GHG, explain.
99 ACHEMA 2018 Preview
Hydrocarbon Engineering previews a selection of companies
active within the downstream hydrocarbon processing
industry that will be exhibiting at ACHEMA 2018.

THIS
Honeywell UOP’s Callidus Technologies business is a
pioneer in combustion and post-treatment technology

MONTH'S
for the refining, petrochemical, chemicals, metals, and
gas processing industries. Following a proven history
of innovative solutions to difficult industry problems,

FRONT
Callidus’ engineering and project execution expertise
is now helping the process industries to navigate the

COVER
rapidly changing environmental compliance landscape
while delivering safe, efficient, clean and high
performance technology.

2018 Member of ABC Audit Bureau of Circulations

JOIN THE Copyright© Palladian Publications Ltd 2018. All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying,

CONVERSATION
recording or otherwise, without the prior permission of the copyright owner. All views expressed in this
follow connect like join journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither
@HydrocarbonEng Hydrocarbon Hydrocarbon Hydrocarbon do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK.
Engineering Engineering Engineering
Uncaptioned images courtesy of www.shutterstock.com.
Making ultrasound audible,
visible and evaluable
• Leak Detection & Evaluation
• Electrical Inspection
• Condition Monitoring
• Steam Trap Inspection
• Detecting range from 20 – 100 kHz

SONOCHEK®
The new ultrasound testing device by PRÜFTECHNIK

www.sonochek.com
 COMMENT
CONTACT INFO CALLUM O'REILLY
EDITOR

W
MANAGING EDITOR James Little
[email protected] orld Cup fever has well and truly
gripped our office in recent
EDITOR Callum O'Reilly
[email protected] weeks. Hydrocarbon Engineering’s
Assistant Editor, Anna, has already
ASSISTANT EDITOR Anna Nicklin stuck a giant World Cup fixture planner next
[email protected]
to her desk, bought an England horn, and is
ADVERTISEMENT DIRECTOR Rod Hardy threatening to attach St George’s Cross flags to
[email protected]
our car when we make the trip over to Germany for ACHEMA in June (if you’re
ADVERTISEMENT MANAGER Chris Atkin attending the show, please drop by Hall 9.2, Stand D1 to meet the team).
[email protected] Prior to England announcing its 23-man squad to take on the world in Russia,
ADVERTISEMENT EXECUTIVE Sophie Barrett the British media went into overdrive with editorial pieces outlining why certain
[email protected] players should (and shouldn’t) be selected for the tournament. Amongst the
more interesting of these stories were those that compiled squads based on
PRODUCTION Ben Munro
[email protected] performance data from the previous season alone. These pieces dug deep into
the data behind every player eligible to play for England at the tournament,
WEB MANAGER Tom Fullerton
[email protected]
analysing statistics such as number of appearances, pass accuracy, distance
covered per game, number of tackles, chances created and shooting accuracy.
DIGITAL EDITORIAL ASSISTANT Nicholas Woodroof While the final squad did not exactly mirror the statistics, data is
[email protected]
undoubtedly playing an increasingly important role in all sports. Innovative
SUBSCRIPTIONS Laura White technology can now provide teams with intricate data about their staff’s
[email protected] performance, which can be used to tailor a player’s workload and fine-tune their
ADMINISTRATION Nicola Fuller training programmes.
[email protected] Much has been written about the transformative impact of digitalisation
on the oil and gas industry. Companies are embracing technologies such as
CONTRIBUTING EDITORS
Nancy Yamaguchi Gordon Cope the Cloud, artificial intelligence, virtual reality, big data and analytics to help
optimise performance, improve efficiency and lower costs. Another benefit of
the digital revolution is that companies can develop deeper relationships with
SUBSCRIPTION RATES their customers.
Annual subscription £110 UK including postage Many of these benefits are demonstrated in an online competition recently
/£125 overseas (postage airmail).
Two year discounted rate £176 UK launched by NAPCON, which is rather aptly named the ‘2018 Operator World
including postage/£200 overseas (postage airmail). Cup’. The competition will be played with NAPCON’s simulation-based Furnace
SUBSCRIPTION CLAIMS
operator training game, which teaches the player how to operate an industrial
Claims for non receipt of issues must be made within 3 months of furnace. The competition, which started in May, involves online qualifications.
publication of the issue or they will not be honoured without charge.
The most successful players are then chosen to participate in industry events,
APPLICABLE ONLY TO USA & CANADA where they will play against each other, face-to-face. The three best players
Hydrocarbon Engineering (ISSN No: 1468-9340, USPS No: 020-998) is
published monthly by Palladian Publications Ltd GBR and distributed in each month will receive five licenses to NAPCON’s Furnace game, as well as
in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831.
Periodicals postage paid New Brunswick, NJ and additional mailing its Distiller game, which was developed to train process operators in the basic
offices. POSTMASTER: send address changes to HYDROCARBON
ENGINEERING, 701C Ashland Ave, Folcroft PA 19032.
distillation process within an oil refinery.
Initiatives such as NAPCON’s Operator World Cup are good examples of how
companies can use digitalisation to successfully interact with their customers,
while demonstrating the benefits of their technology and capturing vital data
15 South Street, Farnham, Surrey about their users. Crucially, gamification, in a world of big data, also enables
GU9 7QU, ENGLAND those customers to engage their workforce during operator training and monitor
Tel: +44 (0) 1252 718 999 their performance.
Fax: +44 (0) 1252 718 992
Although it’s difficult to imagine that any amount of data will help England
win the World Cup this summer, I’m keeping my fingers-crossed that the team
are utilising its potential to the greatest extent possible. I have a feeling that
they’ll need all the help they can get!
 ---INTRODUCING-----
---A----NEW----NAmE---
---IN---INDUSTRIAL-----
---PROCESS---------
---------SOLUTIONS---
IPCO is a new name in Industrial Process solutions but a
business partner with whom many in the sulphur industry
will already be familiar.

Previously operating as Sandvik Process Systems, we are

now an independent company within the Wallenberg group,
a business with approx. 600 000 employees and in excess
of €140 billion in total sales of holdings.

We continue to develop customized solutions for the sulphur

industry, with the same people, skills and process systems –
including our world-renowned Rotoform® pastillation process
– but under a new name and brand.

Read more at ipco.com

 GUEST COMMENT
THOMAS SCHEURING
CEO, DECHEMA AUSSTELLUNGS-GMBH

A
global forum for a global industry – if I had to ideas are often born,
describe ACHEMA in as few words as possible, which can then be
this could be one way to do it. The process developed further.
industries – chemicals, pharmaceuticals, food Many of these ideas
– are global players, tackling global challenges, and their can be seen and
solutions derive from global collaboration. touched at one of
Raw material streams, products and technologies the approximately 3800 stands at ACHEMA 2018.
are traded all around the world, and all stakeholders Building bridges is one of our aims. Not only
profit from this. One reason for their global reach is between countries or regions, but also between
that the process industries serve the most elementary disciplines: engineers, chemists, biotechnologists,
needs of every citizen across scientists, technology
the world. For example, developers and users meet
thanks to agrochemicals, at ACHEMA. If you are
hunger in the world can be looking to build a plant,
fought successfully. Industrial ACHEMA is a one-stop
water treatment ensures that
If you are looking to shopping mall where you
stress on natural resources build a plant, ACHEMA can find everything from the
is minimised, up to a point filter and the pump to the
where a plant’s water supply
is a one-stop shopping automation concept and
is completely self-sufficient, mall where you can find the sensors to monitor your
described by the ‘zero liquid process. Thanks to the sheer
discharge’ concept. The
everything from the size of the exhibition, you
pharmaceutical industry filter and the pump to can also dive deeply into
develops plants that can be one section – visitors have
set up in any corner of the
the automation concept been known to spend the
world to produce medication and the sensors to whole week in Hall 8 where
or vaccines customised to the world’s largest exhibition
local requirements. New fuels,
monitor your process. of pumps, compressors and
one day may even be made valves is an integral part of
from CO2 with the help of ACHEMA. And if you want to
renewable energy, enable know what is on the horizon,
mobility. And lightweight visitors can listen in to some
materials and highly efficient processes help to reduce of the approximately 800 presentations in the lecture
energy consumption. halls and learn what is on the way to the exhibition
In science, as well as in industry, work teams are halls in 2021. Topics related to downstream oil and
diverse, and many research projects reach well beyond gas processing cover anything from alloys for steam
national and even continental borders. Thanks to digital cracking furnace coils to process monitoring in the
communication, working groups can share and discuss refining industry.
their results in real time. Despite these possibilities, Meeting people and discussing new ideas is
scientists still travel, visit other laboratories, make something that works much better in person than in
internships or spend their whole career moving from a blog or discussion forum on the internet. So, pack
one continent to the other. Scientific curiosity does comfortable shoes, plan your visit and join us from
not end at the laboratory door. From collaboration 11 – 15 June 2018 in Frankfurt. True to our slogan:
that takes different perspectives into account, great Be informed. Be inspired. Be there.
Build as big
as you dream.
At AECOM, we work with leading oil and gas producers to design,
build, finance and maintain the infrastructure that delivers raw
product to end consumers. From wellhead to gas tank, from crude oil
to recyclable plastic water bottle, we’re meeting the challenge.

See how we deliver what others can only dream about at aecom.com.
 WORLD NEWS
ADNOC announces plans to become a
UAE | Total, Borealis
USA |
key downstream player and NOVA
Chemicals close on
T he Abu Dhabi National Oil Co.
(ADNOC) has unveiled plans to
invest AED 165 billion (US$45 billion)
overseas investments to secure
greater market access.
Building on the existing strengths
petrochemicals JV

A
alongside its partners, over the and competitive advantages of the fter receiving all of the required
next five years, to become a Ruwais Industrial Complex, ADNOC regulatory approvals, Total S.A,
leading global downstream player. will create the world’s largest and Borealis AG and NOVA Chemicals
The investment will allow the most advanced integrated refining Corp. have closed on their joint
company to stretch the value of and petrochemicals complex. venture (JV) in petrochemicals on the
every barrel it produces to the Through a combined programme of US Gulf Coast.
benefit of ADNOC, its partners and strategic partnerships and investment, The JV company, named Bayport
the UAE. the company will increase its range Polymers LLC (Bay-Pol), is 50% owned
The plans were unveiled at the and volume of high-value by Total and 50% owned by a JV
ADNOC Downstream Investment downstream products, secure better between Borealis and NOVA
Forum. The investment programme access to growth markets globally, Chemicals, Novealis Holdings LLC.
will underpin a new downstream and create a manufacturing The Bay-Pol JV assets include: the
strategy to significantly expand ecosystem in Ruwais that will under-construction 1 million tpy
ADNOC’s refining and significantly stimulate in-country ethane steam cracker in Port Arthur,
petrochemical operations at Ruwais, value creation, private sector growth Texas; Total’s existing polyethylene
and undertake highly targeted and employment. 400 000 tpy facility in Bayport,
Texas; and a new 625 000 tpy
Borstar® polyethylene unit at Total’s
Cheniere continues construction at
USA | Bayport site, subject to further
approvals.
CCL Project Diane Chamberlain has been
appointed President of Bay-Pol. She

C heniere Energy Inc’s board of

directors has made a positive
final investment decision (FID)
the first FID on new liquefaction
capacity in the US since 2015.
The CCL Project is a three-train
said: “We’re excited for the future of
our new company. The partnership
between Total, Borealis and
regarding Train 3 at the company’s liquefaction project. Each train is NOVA Chemicals will create a major
Corpus Christi liquefaction project expected to have a nominal player in the US polyethylene
(CCL Project). The company plans to production capacity, which is prior market [...] We have a great
issue a full notice to proceed to to adjusting for planned opportunity to take advantage of
Bechtel Oil, Gas and Chemicals Inc. maintenance, production reliability, low-cost feedstocks in the US and
to continue construction, which and potential overdesign, of deliver quality products that
began in late 2017 under limited approximately 4.5 million tpy of respond to the growing global
notice to proceed. This represents LNG. demand for plastics.”

Pakistan | PARCO awards TechnipFMC a refinery contract

P ak-Arab Refinery Ltd (PARCO) has

awarded TechnipFMC a project
management consultancy (PMC)
The project will be managed and
operated by wholly-owned
subsidiary, PARCO Coastal Refinery
refinery and serve the rapidly
growing domestic markets for
refined products.
services contract to carry out the Ltd (PCRL). When completed the The agreement was signed on
management of pre-engineering, facilities will comprise a modern, 16 May by Tariq Rizavi, CEO of
procurement and construction deep conversion refinery with a PCRL, and Riccardo Moizo, Senior
(pre-EPC) activities for a grassroot, fully capacity of 250 000 bpd, supported Vice President – Project
integrated, deep conversion refinery by associated marine loading Management Consultancy of
that will be constructed near Karachi. facilities. It will be Pakistan’s largest TechnipFMC.

HYDROCARBON 7 June 2018

ENGINEERING
 WORLD NEWS
IN BRIEF Saudi Arabia | WorleyParsons wins GES contract

germany W orleyParsons has been awarded

a General Engineering Service
(GES) contract by Yanbu Aramco
City. It is the key anchor project in
Yanbu.
YASREF uses 400 000 bpd of
ExxonMobil Catalysts and Licensing Sinopec Refining Co. Ltd (YASREF) to Arabian heavy crude oil to produce
LLC and BASF Corp. have signed an help optimise the production of its premium transportation fuels, as well
alliance agreement to jointly develop facilities. as high-value refined products for
new gas treating solvents and process YASREF operates a full-conversion both international and domestic
technologies for use in natural gas refinery that covers approximately markets. It became operational in
processing and petroleum refining. 5.2 million m2 in the Yanbu Industrial September 2014.
Under this new agreement, BASF
will market and license technologies
developed from this collaboration,
along with FLEXSORBTM and OASE®
technologies.
India | Air Products unveils new gas complex
usa
Cureton Midstream LLC will use
A ir Products has inaugurated its new
industrial gas complex within the
Integrated Refinery Expansion Project
190 000 bpd to 310 000 bpd, while
producing cleaner fuels through
upgraded fuel specification.
Honeywell Connected Plant to (IREP) of the BPCL Kochi Refinery. The Air Products teams located across
provide prescriptive monitoring of its company has invested several hundred four countries (India, the UK, the
UOP Russell gas processing plant in million dollars for the build-own- Netherlands, and the US) worked on
Weld County, Colorado. The plant is operate (BOO) project – the largest of the Kochi project and built on more
designed to cryogenically extract 99% its kind in India in terms of investment. than 15 acres of land, leased from
of ethane and 100% of propane from The Kochi Industrial Gas Complex, BPCL.
natural gas supplied by producers in the which generates hydrogen, nitrogen, A unique highlight of the plant is
Niobrara basin. oxygen, and steam, is key for BPCL’s that the gas turbine is integrated into
IREP to manufacture auto-fuels the design of the twin steam methane
italy complying with Euro IV/Euro V reformers. These are the first twin
Esso Italiana has signed an agreement specifications. The industrial gases steam methane reformers designed
for the sale of its Augusta refinery, manufactured at the complex also and built by Air Products with a
three fuel terminals in Augusta, enable BPCL to increase refining combined capacity of 16.4 tph of
Palermo and Naples, and associated capacity by nearly two-thirds, from hydrogen production.
pipelines, to Sonatrach. Esso Italiana and
ExxonMobil will enter into multi-year
commercial and technology agreements
with Sonatrach for refinery products, ExxonMobil sets greenhouse gas
Worldwide |
including Group I base stocks and waxes,
as well as the operation, improvement
reduction targets
and use of the Augusta, Naples and
Palermo terminals.
E xxonMobil has announced
greenhouse gas reduction
While the company has achieved
a 10% improvement in energy
usa measures that it expects will lead to
significant improvements in emissions
efficiency across its global refining
operations following an effort
Caliche Development Partners has
performance by 2020. The company launched in 2000, further efforts to
executed a long-term storage services
intends to reduce oil and gas methane reduce greenhouse gas emissions will
agreement for ethylene in its Beaumont,
emissions by 15% compared to 2016 target the company’s global refining
Texas, located cavern. The company
and flared gas volumes by 25% and chemicals manufacturing
will provide firm storage service in a
compared to 2016 across its global oil network. Advanced efficiency
substantial portion of the salt cavern for
and gas operations by 2020. The technologies and techniques have
its customer’s ethylene and derivative
company also announced its helped ExxonMobil’s chemical
operations in the Golden Triangle area,
intention to improve its energy business reduce its net greenhouse
beginning in 3Q18.
efficiency in refining and chemical gas emissions intensity by nearly 7%
manufacturing facilities. since 2013.

June 2018 8 HYDROCARBON

ENGINEERING
 Together facing a
brighter tomorrow
At Yokogawa, we believe the sky’s the limit.
And to reach beyond today’s horizons, we
work step-by-step with you to make the
unimagined a reality. That’s how we move
forward, through the synergy of
co-innovation partnership. Join hands with
us, and together we can sustain a brighter
future. Yokogawa: Building a better
tomorrow with you today.

a s e v is it us
P le
s t a n d K 140!
at

www.yokogawa.com
 WORLD NEWS
IN BRIEF Total to develop natural gas
Oman |
resources in Oman
china
China National Offshore Oil Corp.
(CNOOC) and Shell Nanhai B.V. have
T otal has signed a Memorandum
of Understanding (MoU) with the
government of Oman to develop
a potential to reach 1 billion ft3/d at
a later stage.
Total will use its equity gas
officially started-up the second ethylene natural gas resources in the country. entitlement as feedstock to develop
cracker at their Nanhai petrochemicals This MoU covers both upstream and a regional hub for LNG bunkering
complex in Huizhou, Guangdong Province. downstream businesses. service in Oman, which will supply
The new ethylene cracker increases Total and Shell will develop LNG as a fuel to marine vessels. This
ethylene capacity at the complex by several natural gas discoveries in the will be achieved thanks to a new
approximately 1.2 million tpy, more than Greater Barik area on onshore Block 6 small-scale modular liquefaction
doubling the capacity of the complex, with respective shares of 25% and plant, to be built in Sohar port. The
and benefits from a deep integration with 75%, as per the agreement between plant will comprise a train of
adjacent CNOOC refineries. both companies and before possible approximately 1 million tpy and will
State back-in, with the objective of offer the flexibility for expansion as
indonesia an initial gas production of required by the development of the
Through its subsidiary INPEX Masela approximately 500 million ft3/d and LNG bunkering market.
Ltd, INPEX Corp. has awarded KBR Inc.
a pre-front-end engineering and design
(pre-FEED) for the Abadi onshore LNG
project. Under the contract, KBR will
provide a pre-FEED package, utilising
its proven design and execution
Argentina | Trafigura acquires downstream
methodologies. The work will be assets
performed from KBR’s Jakarta office, which
will provide services including site master
plan development, scope of work for the
FEED phase, as well as an EPC schedule and
T he Trafigura Group Pte Ltd has
acquired the majority of
Pampa Energia SA’s downstream
the Argentinian, Paraguayan and
Bolivian markets with diesel and
gasoline via the Parana River. It is also
cost estimate. assets. These assets include more rapidly developing a network of retail
than 250 service stations and the service stations across Argentina
russia Ricardo Elicabe refinery (BBR),
located in Bahia Blanca.
under the Puma Energy brand.
The transfer of the assets and
With the loading of eight custom-made
Damen tugs, Combi Lift has reached a Trafigura’s current operations in rebranding of the 250 service stations
milestone in the Gazprom Amur Gas Argentina include a fluvial fleet and will be progressive and rolled out
Processing Plant (GPP) Project. This officially the Campana Terminal, which supplies over the coming months.
marks the transition between the project
planning and implementation stages.
Combi Lift, contracted by the Linde Group,
chose to cooperate with SAL Heavy Lift on
this project. Germany | BP selects hte for catalyst tests
usa
The first commercial start-up of Clariant’s
OleMax 260 has been successfully achieved
h te – the high throughput
experimentation company – has
been selected by BP to evaluate
naphtha reforming and hydrocracking
catalysts and compare their
performance against incumbent
at the new ethylene production plant of commercial catalysts for both catalysts. The resulting testing
The Dow Chemical Co. in Freeport, Texas. naphtha reforming and programme will provide BP with the
This catalyst was developed specifically hydrocracking applications using data to make selections for its
for ethylene producers with ‘front-end’ high throughput technology under upcoming naphtha reforming and
process configurations to increase yields commercially-relevant conditions hydrocracking catalyst change-outs.
and profits, while helping to ensure safe for its refineries. The overall aim of both projects
and more sustainable operation. BP selected hte for the evaluation is to measure activity, yields and
study to benchmark commercial stability.

June 2018 10 HYDROCARBON

ENGINEERING
Your valves are talking to you.
Are you listening?
Because details matter.

It’s not easy to keep every control valve and every instrument
in your plant at it’s peak performance. Even a small problem
in any one of them could result in major issues for
the entire system.

Metso’s 24/7 Expertune PlantTriage Services focus on the

details that improve reliability, safety and quality. With 24/7
real-time metrics and diagnostics, issues are quickly identified
and prioritized. Anywhere. Anytime.

Learn more at metso.com/valves

#detailsmatter
 WORLD NEWS
DIARY DATES Bilfinger Westcon selected for
USA |
Braskem polypropylene project
11 - 13 June 2018
ILTA International Operating Conference &
Trade Show
Houston, Texas, USA
B raskem and The Linde Group have
selected Bilfinger Westcon Inc. as
their lead mechanical subcontractor
underway, the final phase of main
construction remains on track and
targeted for 1Q20. The new plant
www.ilta.org/aocts
for Braskem’s new North American will have a production capacity of
polypropylene (PP) production line, 450 000 tpy.
11 - 15 June 2018 named Delta. As the lead mechanical
ACHEMA 2018
Frankfurt, Germany
Linde is the lead engineering, subcontractor on the project,
www.achema.de procurement and construction Bilfinger Westcon will be responsible
(EPC) contractor for the PP for the installation of structural
12 - 14 June 2018 production line. steel, piping, and industrial process
Global Petroleum Show 2018 Braskem has committed up to equipment through the completion
Calgary, Canada US$675 million towards the design of the facility construction. The line
www.globalpetroleumshow.com and construction of the Delta line, will represent additional production C

which is being constructed next to capacity of homopolymers, random M

25 - 29 June 2018 the company’s existing production copolymers, impact copolymers, Y

World Gas Conference 2018 facilities in La Porte, Texas. With the and reactor thermoplastic
Washington DC, USA
www.wgc2018.com
initial steel erection phase now polyolefins (TPOs). CM

MY

13 - 14 September 2018
Total and Sonatrach ink agreement
CY

11th EFRC Conference Algeria | CMY

Madrid, Spain
www.recip.org for petrochemical project K

17 - 20 September 2018
Gastech
Barcelona Spain
T otal has signed an agreement
with Sonatrach to launch
engineering studies for a
summer, subject to approval by the
relevant Algerian regulatory
authorities.
www.gastechevent.com petrochemical project in Arzew. The facility will valorise propane,
The project includes a propane produced in large quantities locally,
18 - 20 September 2018 dehydrogenation (PDH) unit and a by transforming it into PP, a plastic
Turbomachinery & Pump Symposia
polypropylene (PP) production unit for which demand is growing
Houston, Texas, USA
tps.tamu.edu with an output capacity of strongly. It will supply local and
550 000 tpy. The project represents Mediterranean demand, and Total
26 - 27 September 2018 an investment of approximately will be responsible for the
Tank Storage Asia US$1.4 billion by the two partners commercialisation of the rest of the
Singapore (Sonatrach 51%, Total 49%), who are production in Europe, where it will
www.tankstorageasia.com planning to start the front-end leverage its market expertise to the
engineering and design (FEED) this benefit of both partners.
9 - 11 October 2018
Asia Downstream Week
Bangkok, Thailand
www.europetro.com USA | JGC and S & B form partnership
12 - 15 November 2018
ADIPEC
Abu Dhabi, UAE
J GC Corp. and S & B Engineers
and Constructors Ltd have
signed a framework agreement to
and gas, petrochemicals, and
chemicals markets, including
preliminary feasibility studies,
www.adipec.com form a strategic partnership to front-end engineering and design
provide engineering, procurement (FEED), EPC, and project
1 - 5 April 2019
and construction (EPC) services for management. JGC and S & B have
LNG 2019
Shanghai, China
projects within the US. previously executed several
www.lng2019.com The partnership covers a full successful EPC projects on the
range of lifecycle services for the oil Gulf Coast.

June 2018 12 HYDROCARBON

ENGINEERING
Merichem Company offers the patented LO-CAT wet
scrubbing, liquid redox system that converts H2S to
innocuous, elemental sulfur. The LO-CAT process
is applicable to all types of gas streams. For fast,
effective treating solutions, choose Merichem.

THE GREEN SOLUTION TO

Sweet Solutions® at the Speed of Your Business

For more information about LO-CAT Sulfur Recovery Technology

visit www.merichem.com
 Nancy D. Yamaguchi, Contributing Editor,
discusses the future of Europe’s oil sector.

June 2018 14 HYDROCARBON

ENGINEERING
W
estern Europe is widely viewed as a
long-established grouping of mature economies
that are technologically, culturally and
politically advanced. This article focuses on the
region’s energy market, which has changed enormously in
response to global conditions and pressures from both within
and from outside of the region.

Still evolving
Outside of Europe, many people would be puzzled to identify
the countries in the region, to place them within their proper
boundaries, and to determine their memberships in the
numerous overlapping international groupings, including the
European Union (EU), the European Free Trade Association
(EFTA), the European Economic Area (EEA), the Eurozone, as
well as the Organisation for Economic Co-Operation and
Development (OECD).
The emergence of new political and economic systems is
having a massive impact on the European energy sector. Many
Eastern Europe and Baltic States are now members of the EU.
They use the Euro as their currency, but their energy
infrastructure and markets may reflect former affiliations with
the Former Soviet Union. Russia remains a key source of crude
oil and natural gas to many of these countries, and Russian
engineering built many pipelines, terminals and refineries along
the way. The country maintains influence on some European
countries via its ability to control the flow of resources.
A core group within Europe is OECD Europe, which was
established in 1960 with the membership of 18 European
countries plus the US and Canada. The organisation was
dedicated to promoting economic development and most of
the members were successful in this aim. There are now
35 members in Europe, North America, South America, and the
Asia-Pacific region.
The OECD Europe countries are members of the EU, but
the reverse is not always the case. For example, Iceland,
Norway, and Switzerland are OECD members, but they are
tied together economically via the EFTA, not the EU. Norway’s
absence from the EU can complicate European oil data, since
it is the largest oil producer in Europe. Within the Baltic States,
Estonia and Latvia are members of both the OECD and the EU,
but Lithuania is an EU member outside of the OECD.
In 2007, Bulgaria and Romania joined the EU, while Croatia
joined in 2013. These countries are not in the OECD. There are
currently five countries seeking to join the EU: Turkey, the
Republic of Macedonia, Albania, Montenegro and Serbia.
Meanwhile, the UK voted to leave the EU in its 2016
referendum. The Brexit ‘divorce’ details are complex and still
under construction.
Is Europe’s situation and direction providing leadership for
the western world? In the energy sector, at least, the regional
industry seems beset from all sides, with energy providers
seeking to expand market share in Europe. To the south are the
Middle East and Africa, with massive reserves of oil and gas. To
the east are Russia and other CIS countries, some of which are
greatly expanding their energy production and exports.

HYDROCARBON 15 June 2018

ENGINEERING
 Within the oil sector, gasoline demand is
declining, and it is assumed that the gasoline
market will continue to shrink. Gasoline demand in
the EU peaked at approximately 3.07 million bpd in
1992. Between 1990 and 2016, gasoline demand
declined at an average rate of 2% per year. This
demand fell to approximately 1.8 million bpd in
2016.
EU diesel demand grew at 1% per year from
1990 to 2016, increasing from approximately
4.5 million bpd in 1990 to 5.8 million bpd in 2016. As
Figure 1 illustrates, however, the oil price spike of
2008 and the subsequent global economic
Figure 1. EU gasoline and diesel demand, '000 bpd (source: BP). recession derailed demand growth. During the
period between 2008 and 2016, diesel demand
shrank at an average annual rate of 0.3%, while
gasoline demand shrank at a rate of 2.9% per year.
To place EU gasoline demand in context, the EU
has a population of approximately 508 million, and
a gasoline market size of 1.8 million bpd. The US has
a population of 325.7 million and a gasoline market
size of over 9.3 million bpd. Thus, on a per-capita
basis, US consumers use eight times as much
gasoline as their European peers.
The EU remains a large and important oil
market, but it is viewed as a shrinking market. This
makes it difficult to justify large investments in the
fossil energy sector. Fuel quality regulation and the
Figure 2. European oil production, '000 bpd, and percentage of structure of demand offer additional challenges. It
global production (source: BP). takes a highly sophisticated refinery to produce an
output slate dominated by ultra-low sulfur diesel,
with a declining share of gasoline and virtually no
Russia is now a key member of the oil production cut residual fuel oil. Many refineries have closed, as will be
agreement with OPEC, working to drain global oil stockpiles and discussed throughout this article.
drive up prices. As the dominant producer to the east of Europe,
Russia has shown willingness to use its energy exports to Dwindling oil production and rising
promote its political aims. Even the US is precociously ramping imports
up oil exports. The shale boom and the relaxation of restrictions European crude oil production has been following a
on crude oil exports propelled US crude exports to ‘Hubbert Peak’ bell-shaped curve trend (Figure 2). Production
approximately 1.1 million bpd in 2017, nearly 0.3 million bpd of grew from approximately 0.3 million bpd in the early 1960s to
which went to Europe. These exporters value the European a peak of 6.6 million bpd in 1999 – 2000. It then slid to
market, but Europe is working to move away from fossil energy. 3.1 million bpd in 2013 before rebounding slightly to
3.3 million bpd in 2016. This includes production from Norway,
European energy demand declines a non-EU member that is Europe’s largest crude producer, and
The EU energy sector is facing a long-term decline in fossil the UK, Europe’s second-largest producer. The International
energy demand. The downward trend would be even more Energy Agency (IEA) places Norwegian production at
dramatic without the new entrants to the EU since 2004. 1.97 million bpd in 2017 and UK production at 1.02 million bpd.
According to data published by BP between 1965 and 1975, The other producers of note are Denmark (142 000 bpd in
European energy demand was growing at approximately 3.5% 2016), Italy (79 000 bpd in 2016), and Romania (79 000 bpd in
per year. The oil price shocks caused oil use to shrink in the 2016).
early 1980s, but demand began to grow once again after prices In 1996, Europe accounted for 9.2% of global crude
collapsed in 1986. European oil demand grew sedately at rates production. This share fell to 3.6% in 2016.
averaging 0.7% per year between 1985 and 2005. Between Europe is a major importer of both crude oil and refined
2006 and 2016, however, oil demand fell at an average rate of products. Figure 3 provides details on crude oil imports by
1.7% per year. Coal consumption fell at an average rate of source in 2016, per BP. Of the total 499.4 million t, nearly half
3.1% per year. Even natural gas use, which had been promoted was imported from Russia and other CIS countries. The
as a clean alternative to oil and coal, fell at an average rate of Middle East was the source of 25% of Europe’s crude import,
1.3% per year. The bright spot of growth has been for followed by Africa (21%) and the Americas (6%).
alternative and renewable energy sources other than Europe imported 1.1 billion t of refined product in 2016
hydropower. (Figure 4). The sources were diverse: 33% from Asia and the

June 2018 16 HYDROCARBON

ENGINEERING
Latest News
2018

VENTURE GLOBAL LNG TO SUPPLY LNG TO BP

Venture Global Calcasieu Pass LLC (a subsidiary of Venture Global LNG Inc.)
and BP have entered into a sales and purchase agreement for the supply of
2 million tpy of LNG from the Venture Global Calcasieu Pass LNG export facility,
which is currently under development in Cameron Parish, Louisiana, US. Under
the agreement, BP will purchase LNG on a free on board basis for a 20-year term,
starting from the commercial operation date of the LNG export facility, which is CADWorx Plant Professional
currently expected in 2022. makes the creation of
intelligent plant designs quick
and easy. It has helped firms
CEPSA AND ADNOC SIGN PROJECT DEVELOPMENT AGREEMENT produce the high-quality
The Abu Dhabi National Oil Co. (ADNOC) has signed a project development deliverables their customers
have come to rely on for over
agreement with Cepsa of Spain for a new, world-scale linear alkylbenzene (LAB) fifteen years.
facility in ADNOC’s refining and petrochemicals complex in Ruwais, UAE. This
LAB project is one of a number of initiatives to be executed as ADNOC looks
to significantly enhance and expand its refining operations and capabilities to
Capabilities
support its downstream plans. AutoCAD® or BricsCAD® Platform
Intelligent 3D Piping Design
CHEVRON AND NOVVI PARTNER ON BASE OIL TECHNOLOGIES On-the-fly Collision Checking
Structural Steel
Amyris Inc. and Chevron Products Co., a division of Chevron U.S.A. Inc., have Equipment
announced that Novvi LLC and Chevron have entered into an agreement to jointly Ducting/Cable Trays
develop and bring to market novel renewable base oil technologies. Terms of the Isogen® Isometrics
P&ID Creation and Links
transaction have not been disclosed.
Links to Stress Analysis
Design Review
MAMMOET COMPLETES PROJECT AT US REFINERY
Mammoet has constructed and safely manoeuvred two CC8800 cranes for the hexagonppm.com/cadworx
installation of large sections of furnaces in an 86-year old refinery in Texas, US.
The company helped to cut the project’s duration by more than one month and
thus get the refinery back online sooner.

For further information go to: ©

2018 Hexagon AB and/or its subsidiaries and affiliates.
AutoCAD is a registered trademark of Autodesk, Inc.
www.hydrocarbonengineering.com BricsCAD is a registered trademark of Bricsys. All rights
reserved.
 Pacific, 28% from the Americas, 19% from the Middle East, 16% Figure 5 illustrates the growth in US refined product and
from Russia and other CIS countries, and 4% from Africa. crude exports to Europe. In 2004, the US exported around
More recently, the US has expanded its presence in the 0.2 million bpd of product to Europe. This grew to
global export market. The shale boom added over 0.73 million bpd by 2015. At the end of 2015, the US eased its
4.3 million bpd of crude supply to the US between 2008 and 1970s-era restrictions on crude exports. When the restrictions
2017. Refinery utilisation rates rose dramatically in US areas were lifted, crude oil exports to Europe rose to nearly
with surplus light tight oils (LTOs) from shale plays, and the 0.3 million bpd in 2017.
excess product was exported.
European refining: losing ground in the
global context
While many European countries have found common ground
for economic cooperation, the refining industry remains one
where countries and companies largely go their own way.
Rationalising European refining has been a decades-long
battle, and this is likely to continue.
Figure 6 shows the rise and fall in European crude refining
capacity. Globally, refineries were built swiftly in the 1960s and
1970s. In 1965, Europe’s crude capacity was approximately
8.7 million bpd. This soared to 22.9 million bpd by 1976. The oil
price shocks of the 1970s then caused oil demand to collapse.
Many refineries were mothballed or closed, including ones
that had been newly built. Europe’s industry suffered greatly
during the years of global overcapacity. Between 1976 and
1986, European capacity dropped by nearly 5.7 million bpd.
Another 0.8 million bpd closed between 1986 and 1993.
Figure 3. Europe crude imports 2016, million t During this time, Saudi Arabia launched a programme of
(source: BP). export-oriented refinery expansion. The rationale was that
crude oil exporting countries could capture more value-added
by processing their own raw materials. Although the Asia
Pacific market was the primary target, Europe was viewed as
the secondary outlet. This placed additional pressure on
European refineries, particularly those without access to
inexpensive crude oil feedstocks.
Europe’s refineries have been pressured from all sides. In
1991, the Soviet Union was dissolved, causing upheaval in
Central Asia and Eastern Europe. Oil production plunged. As
Russia and the newly-emerged CIS countries began to recover,
many began to rebuild and modernise their refineries, both for
domestic markets and for export markets.
In Asia, the oil demand boom was accompanied by the
world’s largest programme of refinery expansion. Between 1996
Figure 4. Europe product imports 2016, million t and 2016, 14.4 million bpd of refinery capacity was added in Asia
(source: BP). – more than the capacity of the entire EU. Many new Asian
refineries are export-oriented, designed to produce ultra-low
sulfur fuels that are compatible with European specifications.
Europe’s refinery capacity stagnated, remaining in the
range of 16.2 million bpd – 17.2 million bpd for many years.
However, investments are continually required to improve the
yield of higher-quality transport fuels. European governments
have also begun to require more efficient engines with lower
emission levels, and these vehicles require better quality fuels.
The vehicle and fuel standards became known as Euro
standards, and they quickly spread around the world. The
phase-in schedule varied by fuel, location, and vehicle types.
As a rough chronology, however, Euro 1 and Euro 2 standards
were adopted in the 1990s, Euro 3 followed in the year 2000,
Euro 4 arrived in 2005, and Euro 5 was adopted in
Figure 5. Growth in US crude and product exports
2008 – 2009. For new European vehicles, Euro 6 standards
to Europe, '000 bpd (source: US Energy Information
Administration). were introduced in September 2015 to further tighten vehicle
emissions.

June 2018 18 HYDROCARBON

ENGINEERING
Together
we succeed
At Sulzer we develop, design and produce mass transfer equipment and offer
solutions for all your separation issues. Our portfolio includes state-of-the-art Visit us at ACHEMA 2018
products for distillation, absorption, stripping, evaporation, phase separation, in Frankfurt, June 11–15.
liquid-liquid extraction, crystallization, and membrane separation. Hall 4, Stand D48 - Chemtech
Hall 8, Stand A71 - Pumps and
Sulzer offers an insight into the latest designs as well as developments in asset Rotating Equipment Services
management and pump optimization software and is a leader for rotating
equipment services with a worldwide network of service centers, supported by
design, manufacturing and engineering facilities that can offer turnkey solutions
for the chemical manufacturing sector.

Because life is fluid – www.sulzer.com

Sulzer Chemtech, Neuwiesenstrasse 15, 8401 Winterthur, Switzerland

Phone +41 52 262 37 22, [email protected]
 nn Norske Shell AS, Sola, Norway, 53 000 bpd, closed
(2000).
nn MOL Hungarian Oil and Gas Co., Zalaegerszeg,
Hungary, 10 000 bpd, operates as an asphalt plant
(2001).
nn Koramo Kolin, Kolin, Czech Republic, does not
process crude, operated as a lubricant oil plant but
this shut down (2008).
nn MOL Hungarian Oil and Gas, Tiszaujvaros, Hungary,
does not process crude (2008).
nn Total SA, Dunkirk, France, 137 000 bpd, shut down
(2009).
nn Petroplus International NV, Teesside, England, UK,
100 000 bpd, operating as a storage and marketing
Figure 6. Europe's refining capacity, '000 bpd, and facility (2009).
percentage of world (source: BP).
nn Petroplus Reichstett, France, 85 000 bpd, shut down
(2010).
nn ConocoPhillips, Wilhelmshaven, Germany,
Europe’s refining companies invested steadily to comply with Euro 260 000 bpd, shut down (2010).
standards. Market demand, however, was not growing. The oil price nn Petroplus Holdings AG, Cressier, Switzerland,
spike and the global economic recession in 2008 caused a drop of 60 000 bpd, shut down (2011).
approximately 2.2 million bpd of oil demand between 2008 and 2014, nn Tamoil Raffinazione SpA, Cremona, Italy, 94 000 bpd,
before demand recovered modestly in 2015 – 2016. This hastened the converted to a storage facility (2011).
process of refinery closures. Europe’s refining capacity fell by nearly nn Unipetrol, Paramo, Czech Republic, 20 000 bpd,
2 million bpd between 2008 and 2016. Europe’s role in global refining shut down (2012).
has fallen dramatically. In 1975, the region was the site of 31% of the nn Arpechim SA/Petrom, Pitesti, Romania, 70 000 bpd,
world’s refinery capacity. In 2016, this had been reduced to 15%. shut down (2012).
nn Petroplus, Petit Couronne, France, 162 000 bpd,
European refinery changes and closures shut down (2012).
Europe’s refining sector has been plagued by overcapacity and poor nn Petroplus, Coryton, England, UK, 220 000 bpd,
profitability. Market analysts have continually pointed to this shut down (2012).
overcapacity and recommended that certain refineries be closed. The nn ExxonMobil, Fawley, England, UK, reduced capacity by
process has taken years, since it is always easier to recommend that 40 000 bpd (2012).
someone else close a refinery rather than it is to close your own. The nn Total/ERG, Rome, Italy, 86 000 bpd, shut down (2012).
decision to close a refinery is never an easy one. Most refineries try to nn Eni SpA, Porto Marghera, Italy, 80 000 bpd, converted
hold out and await better times, or to wait for a competitor to close. to a biorefinery (2013).
There have been few refinery expansions, with the notable nn Total SA, Gonfreville, France, 111 000 bpd capacity
exception of Repsol’s expansion in Cartagena, Spain, where reduction (one of two crude towers) (2013).
construction was launched in 2011. The project more than doubled the nn Deutsche Shell AG, Harburg, Germany, 110 000 bpd
refinery’s capacity, from 100 000 bpd to 220 000 bpd. Product yields capacity reduction (2013).
and quality were improved by adding a hydrocracker and a coker. nn Italiana Energia E Servizi SpA, Mantova, Italy,
Over time, however, many European refineries were unable to 69 000 bpd, converting to a product logistics hub
remain competitive. The following is a brief chronology of changes in (2014).
European capacity since 1993, compiled from various sources. These nn LyondellBasell Industries, Berre l’Etang, France,
include closures, partial closures, or changes in function. Some 105 000 bpd, initially mothballed, then converted to
an oil terminal (2014).
refineries changed ownership, but at times the new owners were not
able to fully upgrade or expand as originally planned: nn Murphy Oil Co., Milford Haven, Wales, UK,
135 000 bpd, converting to an oil terminal (2014).
nn Agip Raffinazione SpA, Rho, Milan, Italy, 80 000 bpd, closed (1993). nn MOL Hungary, Mantua, Italy, 55 000 bpd, converting
nn Kuwait Raffinazione E Chimica, Naples, Italy, 100 000 bpd, closed to an oil terminal (2014).
(1993). nn Eni, Gela, Italy, 105 000 bpd, to be transformed to a
nn Bosanski, Brod, Bosnia-Herzegovia, destroyed by war; reopened in ‘Green Refinery’ (2015).
2000 with Russian assistance (1994). nn Total SA, La Mede, France, 158 000 bpd, converted to
nn Hydrierwerk Zeitz GmbH, Zeitz, Germany, 74 000 bpd, closed a biorefinery and an oil storage and trade terminal
(1995). (2015).
nn Mobil Oil AG, Wörth, Germany, 105 000 bpd, closed (1995). nn CEPSA, Tenerife, Spain, 87 000 bpd, shut down (2015).
nn Leuna Raffineriegesellschaft, Leuna, Germany, 100 000 bpd, nn Total SA, Killingholme, South Humberside, England,
closed (1997). UK, 222 000 bpd, closure of one distillation unit
nn Gulf Oil, Milhaven, Wales, UK, 112 000 bpd, closed (1997). (2016).
nn Addinol Mineralol GmbH, Krumpa, Germany, 118 000 bpd,
nn Eni, Gela, Italy, 105 000 bpd, to be transformed to a
operates as a lubricant oil plant (1998).
‘Green Refinery’. Legal issues in 2017 may close
nn Shell UK Ltd, Shell Haven, UK, 92 000 bpd, closed (1999). refinery entirely (2017).

June 2018 20 HYDROCARBON

ENGINEERING
I NNOVATION

FLEXIPRO ™

technology,
the next generation
fixed valve tray.

The reliability of a large fixed valve that delivers enhanced performance

combined with an operating range close to that of a movable valve.
The FLEXIPRO™ valve tray exceeds the performance of similar fixed valve trays:
• Increased tray efficiency
- Can result in reduced reboiler duty or increased throughput at same reboiler and condenser duties
• Higher capacity
- Can result in higher throughput; check for sufficient reboiler and condenser capacities
• Higher turndown ratio with no increase in pressure drop
- Provides more flexibility at stable operating conditions without loss of tray efficiency
• Enhanced push and sweeping effect over the tray deck to remove solid deposits
- Mitigates the risk of fouling and achieves longer run lengths

The FLEXIPRO™ valve tray approaches the turndown ratio of movable valve trays without
the drawbacks:
• Valves cannot stick closed
- Uniform vapor distribution maintains tray efficiency over the full operating range
• Non-moving valve legs do not cause erosion or enhanced corrosion
- Maintain uniform open area and good vapor distribution

YOU CAN RELY ON US.

™

United States 316-828-5110 | Canada 905-852-3381 | Italy +39-039-638-6010 | Singapore +65-6831-6500

For a complete list of our offices and facilities, visit our Web site.
www.koch-glitsch.com
For related trademark information, visit http://www.koch-glitsch.com/trademarks. Patent pending.
Visit Koch-Glitsch at Achema - Hall 4.0 Stand D1
 Fewer but stronger the refining industry has the advantage of location, tied with
This article has identified 36 European refineries that have Rotterdam, Europe’s largest port and oil terminal.
either been closed, converted to other uses, or have had crude In total, CDU capacity fell from 10.78 million bpd in 2001
throughput reduced or eliminated. Table 1 looks more closely to 9.74 million bpd in 2017. The number of refineries fell from
at refinery capacities in Europe’s six largest refining countries. 69 in 2001 to 56 in 2017.
The table compares each country’s crude distillation unit Meeting Euro standards has been a challenge for refineries.
(CDU) capacity in 2001 with its capacity in 2017. CDU capacity Producing ultra-low sulfur fuels has forced countries to
was reduced in France, Germany, Italy, and the UK, while it was increase their hydrotreating capabilities. Concurrently, crude
expanded in Spain and the Netherlands. In the Netherlands, capacity was reduced, causing the ratio of hydrotreating to
CDU capacity to increase. In 2001, hydrotreating
capacity was listed at 5.8 million bpd, while CDU
Table 1. Europe's largest refining countries focus on sulfur capacity was 10.78 million bpd – a
removal
hydrotreating-to-CDU ratio of 54%. By 2017,
Crude distillation Hydrotreating CDU:HDT Number of
hydrotreating capacity had grown to
capacity (bpd) capacity (bpd) ratio (%) refineries
6.9 million bpd, while CDU capacity had fallen to
France 2001 1 895 473 928 607 49 12 9.74 million bpd. The hydrotreating-to-CDU
France 2017 1 405 913 1 065 393 76 8 capacity ratio grew to 71%.
Gain/(loss) (489 560) 136 786 27 (4)
Germany 2001 2 259 000 1 601 513 71 14 Conclusion
Europe’s energy industry has been pressured by
Germany 2017 2 188 984 1 958 614 89 13
stringent regulations, external competition,
Gain/(loss) (70 016) 357 101 19 (1) falling production, and falling demand. Dozens of
Italy 2001 2 359 100 1 072 310 45 17 refineries have closed, cut back on crude
Italy 2017 2 117 309 1 207 973 57 13 throughput, or been transformed into terminals
Gain/(loss) (241 791) 135 663 12 (4) or biorefineries.
Europe’s refining industry has made
The Netherlands 1 203 842 651 470 54 6
2001
investments to comply with Euro standards. The
remaining refineries are larger and sophisticated,
The Netherlands 1 213 092 783 241 65 6
but there are no plans to invest in new refineries,
2017
and additional capacity rationalisation is
Gain/(loss) 9250 131 771 10 n/a
expected. Refineries and downstream assets also
Spain 2001 1 293 500 536 300 41 9 continue to change hands. Algeria’s national oil
Spain 2017 1 427 500 827 630 58 9 company, Sonatrach, recently purchased
ExxonMobil’s refinery in Augusta, Italy, along with
Gain/(loss) 134 000 291 330 17 n/a
three terminals and associated pipelines. Despite
UK 2001 1 771 040 1 015 190 57 11 the shrinking market, many foreign refiners are
UK 2017 1 389 705 1 070 990 77 7 vying to export fuel to Europe. Some countries
Gain/(loss) (381 335) 55 800 20 (4) accelerated the adoption of Euro specification
fuels for their domestic markets so they could
Top six 2001 10 781 955 5 805 390 54 69
also penetrate the EU market.
Top six 2017 9 742 503 6 913 841 71 56 In time, would-be exporters may find the EU
Gain/(loss) 1 039 452 1 108 451 17 (13) market changed beyond recognition. The EU is
Note: author's calculations based on Oil and Gas Journal capacity figures committed to fighting environmental
degradation and reducing greenhouse gas
emissions. It is significant that the world’s
milestone climate accord is called the Paris
Agreement, adopted by consensus in 2012.
Europe has dramatically reduced its carbon
dioxide emissions (Figure 7). In 1965, the region
contributed an estimated 29.4% of global carbon
dioxide emissions. This share plummeted to
10.4% in 2016, and the EU has ambitious goals to
continue on this path. France, for example, is
determined to ban all use of coal for electricity
generation, and eventually ban the use of
gasoline and diesel vehicles.
Europe is a diverse grouping of countries that
have united in many key ways to choose new
Figure 7. Europe's carbon dioxide emissions, million t, and
percentage of world (source: BP). paths. Perhaps the region will continue to set the
path for the global energy sector.

June 2018 22 HYDROCARBON

ENGINEERING
 JUNE ISSUE

You will need to be a subscriber to read the full edition.

Please log in to www.hydrocarbonengineering.com
or alternatively, click here to subscribe.

For more information about the comprehensive

Hydrocarbon Engineering subscription package, please contact us:
www.hydrocarbonengineering.com
E: [email protected]
T: +44 (0)1252 718999