RESIDUE CONVERSION TO PETROCHEMICALS

FOR ENHANCING REFINERY MARGINS

Refining and Petrochemicals World, January 18-19, 2017, New Delhi

Sunil Singhal
Vivek Chate

© 2016 Fluor. All Rights Reserved.

*** Confidential *** Fluor is a registered service mark of Fluor Corporation.
ML20160700-001.ppt
AGENDA
 Gasification overview
 Synergies between gasification and refinery
 Refinery residues as gasification feedstocks
 Residue analysis as gasification feedstock
 Gasification product options
 Methanol and derivatives from residues
 Relative value addition for various products
 Key drivers for gasification – refinery integration
 Success stories
 Fluor gasification experience
 Conclusions

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GASIFICATION OVERVIEW
 Converts low value carbonaceous solid or liquid feeds to syngas
 Reaction of feed with oxygen and steam at high temperature
 Basic Gasification reactions
• Partial Oxidation 2 C + O2 → 2 CO
• Steam Gasification (Reforming) C + H2O → CO + H2
• Water Gas Shift CO + H2O → CO2 + H2
• Methanation 3 H2 + CO → CH4 + H2O
 Conditions: 900 – 1500°C / 0.3 – 85 barg
 Heteroatoms:
• N converted primarily to N2, NH3, HCN
• S converted primarily to H2S, COS, CS2
 Syngas clean up and acid gas removal
 Combustion or further processing of clean syngas to products
 Sulphur recovery as elemental ‘S’ or sulphuric acid
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SYNERGIES BETWEEN GASIFICATION &
REFINERY

UTILITIES

RESIDUES

REFINERY

FINISHED PRODUCTS
FEEDSTOCK
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SYNERGIES BETWEEN GASIFICATION &
REFINERY

UTILITIES
UTILITIES

GASIFICATION
ADDITIONAL PRODUCTS

RESIDUES

REFINERY

FINISHED PRODUCTS
FEEDSTOCK
*** Confidential ***

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REFINERY RESIDUES AS GASIFICATION
FEEDSTOCK
 Opportunity crudes have relatively large share of heavies
compared to lighter grades
 With time, conventional crude oil is depleting and the demand is
fulfilled by heavy sour crude
 Quality standards are getting more stringent for refinery products
 Demand for white products is increasing and is decreasing for
heavy fuel oil
==> More, heavier, sour, residues from refineries

*** Confidential ***

Total World Oil Reserves Typical Refinery Yields By Crude Type 6

 REFINERY RESIDUES AS GASIFICATION
FEEDSTOCK

CDU
BOTTOMS
VDU
RESIDUE
VACUUM

COKER SOLVENT
VISBREAKER
DEASPHALING

COKE TAR ASPHALT

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 REFINERY RESIDUES AS GASIFICATION
FEEDSTOCK

CDU
BOTTOMS
VDU
RESIDUE
VACUUM

COKER SOLVENT
VISBREAKER
DEASPHALING

REFINERY VACUUM COKE TAR ASPHALT

SLUDGES RESIDUE

GASIFICATION FEEDSTOCK

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 RESIDUE ANALYSIS AS
GASIFICATION FEEDSTOCK
 Low ash content
 High sulphur content
 Presence of heavy metals (e.g. vanadium, nickel, iron)
 Low volatile matter
 Highly viscous – liquid residues
=> Require gasification at high temperatures with entrained flow
(slagging) gasifier

Vacuum Coke Visbreaker Butane Generalized

Refinery
Residue Residue Asphalt Residue
C, wt% 83.80 87.53 85.27 84.37 83-87
H, wt% 9.60 3.60 10.08 9.67 4-10
S, wt% 6.20 7.36 4.00 5.01 3-8
Ash, wt% 0.10 0.20 0.15 0.20 0.1-1.5
*** Confidential ***

Vanadium, mg/kg 300 700 270-700 300 250-700+

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 GASIFICATION PRODUCT OPTIONS

Clean Power & Steam

Syngas DRI

Ammonia
Urea
Ammonium Nitrate Fertilizers Hydrogen Refinery
Ammonium Sulphate & Energy Oil Sands

Olefins Low
Gasoline Value
Fuel Gas
Acetic Acid Fuels C2-C3
Aldehydes
LPG
Anhydrides
MeOH & FT Naphtha
DME
Derivatives Products Jet Fuels
MEG
Diesel
MTBE
Lubes, Wax
Ethanol & Mixed
Alcohols SNG
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 GASIFICATION PRODUCT OPTIONS

Clean Power & Steam

Syngas DRI

Ammonia
Urea
Ammonium Nitrate Fertilizers Hydrogen Refinery
Ammonium Sulphate & Energy Oil Sands

Olefins Low
Gasoline Value
Fuel Gas
Acetic Acid Fuels C2-C3
Aldehydes
LPG
Anhydrides
MeOH & FT Naphtha
DME
Derivatives Products Jet Fuels
MEG
Diesel
MTBE
Lubes, Wax
Ethanol & Mixed
Alcohols SNG
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METHANOL DEMAND SCENARIO

2011 2016

*** Confidential ***

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 RELATIVE VALUE ADDITION
FOR VARIOUS PRODUCTS
Refinery Residue Values

Residue Price, $/MMBtu Market Price*

Petcoke 2.1-2.4 $ 60-70 / MT

Asphaltenes 3.0-4.0 $ 115 - 150 / MT

* $/ MMBtu values are based on indicative market prices in India for relative comparison

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 RELATIVE VALUE ADDITION
FOR VARIOUS PRODUCTS
Refinery Residue Values Gasification Product Values

Residue Price, $/MMBtu Market Price* Product Price, $/MMBtu Market Price*

Petcoke 2.1-2.4 $ 60-70 / MT Methanol 16-18 $ 310 - 330 / MT

Asphaltenes 3.0-4.0 $ 115 - 150 / MT Ethanol 37 $ 1032 / MT**

Ethylene 21 $ 1020 / MT

Acetic Acid 36 - 40 $ 500 - 550 / MT

MTBE 24 $ 870 / MT

Ammonia 26-33 $ 550-700 / MT

Urea 30-35 $ 300-350 / MT

Naphtha 8.5 $ 382 / MT

Petrol (Gasoline) 12.9 INR 28 / Ltr***

Diesel 11.2 INR 28 / Ltr***

SNG 6-7 LNG (landed) Price****

* $/ MMBtu values are based on indicative market prices in India for relative comparison
** Delivered price at Oil Marketing Companies’ (OMC’s) depots
*** Refinery gate price
**** Re-gasification, compression and pipeline transportation (to customers) costs would be incurred over and above the mentioned price

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KEY DRIVERS

 India is producing ~13 MMTPA petcoke, expected to rise to 16

MMTPA with planned coker units

 Carbon/energy is lost as residues impacting overall refinery

efficiency, yields and environment

 With high thermal efficiency and carbon conversion, Gasification

is the most suitable option to process residues and enhance
refinery performance with reduced environmental impact

 Although high on capital investment, such integration boosts the

refinery profits; Per Moody’s Investors Service, “RIL’s refinery
margins will improve post completion of the margin-enhancing
projects including petcoke gasification project.”
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KEY DRIVERS

 METHANOL
– Opportunity to address current net imports in India
– Government’s emphasis on Methanol Economy will push demand up
– Opportunities of using methanol as direct fuel in transport vehicles,
ships

 MTO
– Petrochemical demand is set to rise in geometrical progression in
next few years
– MTO with refinery residues offers low value feedstock in comparison
with traditional feedstocks

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KEY DRIVERS

 ETHANOL
– Ethanol blending up to 10 vol% is being encouraged in transport fuels

 OTHER METHANOL DERIVATIVES

– Sustainable demand for methanol derivatives

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SUCCESS STORIES

 10+ petcoke based gasification plants worldwide. World’s largest

petcoke based gasification plant is under construction at
Reliance’s Jamnagar, India Refinery

 Residue gasification at Rotterdam Pernis Refinery (Shell) – 1,650

tpd of thermally cracked residue gasified to produce 3 MMNm3/d
of hydrogen

 3,150 tpd asphaltenes gasification at OPTI/Nexen’s Long Lake

Project to produce hydrogen and fuel gas

 Jazan Gasification project: Largest gasification based power

plant. 2,400 MW power production using vacuum residue

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SUCCESS STORIES

 Key achievements of Residue Gasification Project at Shell Pernis

Refinery
– Increase in the high sulphur crude from 63% to 84% of the total intake
– Increase in the white product make from 78% to 85% of total output
– Sulphur in refinery products reduced by one third
– Refinery sulphur emissions reduced by one-third

Stand alone Refinery +

Refinery Gasification
Integration
Total Intake, MMt/y 17.9 17.9
High Sulphur Crude, MMt/y 11.3 15.0
White Products, MMt/y 12.8 14.0
SOx Emissions, Mt/y 35 24
NOx Emissions, Mt/y 12 7
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 FLUOR GASIFICATION EXPERIENCE

Client Location Scope Feed Products Technology Completed

Lake Charles Louisiana FEED, EPFC Petcoke Methanol GE Ongoing
Methanol
Reliance India E, P and PM Petcoke, Coal Hydrogen, SNG, Power CB&I E-Gas Ongoing
Industries Support
Celanese / IOCL India Pre-FEED Petcoke, Coal Ethanol, Power Confidential 2015
Pertamina Indonesia Pre-FEED MSW Power Solena 2014

Confidential Indonesia Pre-FEED High Moisture SNG, Urea, CO2 Confidential 2012
Indonesian Coal

Jindal SynFuels India Pre-FEED High Ash Indian FT Liquids, Ammonia Confidential 2012
Coal

Reliance ADAG India Pre-FEED High Moisture SNG, Power Confidential 2012
Indonesian Coal

MAK Mongolia Pre-FEED High Moisture MTG, Power Confidential 2012

Brown Coal
Fulcrum Sierra Nevada FEED Refresh, MSW Ethanol, Power InEnTech (IET) 2012
BioFuels EPC
OPTI Canada Alberta FEED Residue Hydrogen, Power, CO2 Shell 2012
Phase II

Rentech California FEED Woody Waste FT Liquids, Power Rentech 2011

SilvaGas

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 FLUOR GASIFICATION EXPERIENCE

Client Location Scope Feed Products Technology Completed

Summit Texas FEED Coal Urea, Power, CO2 Siemens 2011
Deep Swan Hills
Swan Hills Alberta Pre-FEED, FEED Unmineable Power, CO2 In-situ Coal 2011
Coal Gasification
MSEZL India Pre-FEED Petcoke Acetic Acid, Hydrogen, Power Confidential 2010
Eastman Texas FEED Petcoke Hydrogen, Methanol, Ammonia, CO2 GE 2009
Confidential Montana Pre-FEED Coal Urea, Power, CO2 Siemens 2009
Valero Texas Pre-FEED Petcoke Hydrogen, Power, CO2 ECUST 2009
OPTI Canada Alberta FEED, EP Residue Hydrogen, Power Shell 2008
Steelhead Illinois FEED Coal SNG CB&I E-Gas 2006
Total France FEED Residue Hydrogen, Power GE 2004
ISAB Italy Owner’s Eng. Residue Hydrogen, Power GE 1999
Great Plains North Dakota Owner’s Eng. Coal SNG Lurgi 1988
Shell Netherlands FEED, EPCM Residue Hydrogen, Power Shell 1997
Motiva Louisiana EP Residue Hydrogen GE 1985
Eastman Tennessee C Coal Chemicals GE 1986
Sasol South Africa EPCM Coal FT Liquids, Chemicals Lurgi 1980

Note: Operating plants in red

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CONCLUSIONS
 Dual benefit: Residue management and High value products
 Provides flexibility in refinery feedstock processing
 A high thermal efficiency process that can extract maximum
economic benefits from the residues
 Syngas produced from gasification can be processed to give a
wide variety of product slate to choose from, depending upon
refinery requirement and economic / strategic considerations for
external markets
 Byproducts 'S' or H2SO4, CO2, Slag, N2, Ar can fetch additional
revenue
 Gasification offers reduced air emissions and carbon footprint, a
key concern in the wake of new stricter emissions norms
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Stay Connected..

Sunil Singhal Vivek Chate

sunil.singhal@fluor.com Vivek.Chate@fluor.com
+91.124.457.0700 Extn. 1649 +91.124.457.0700 Extn. 2878

http://www.fluor.com

http://www.linkedin.com/company/fluor

@FluorCorp

http://www.youtube.com/user/FluorCorporation

*** Confidential ***

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